One of the reasons the interest rates do not impact the Real estate asset class is because of the simple fact that it is running on money which is PARALLEL. No individual or HNI can borrow through the official channel to buy a land in any city. It may not even cover 5 % of the cost. That being the case to signal control of this asset class through monetary instruments, as you have very simply and eloquently argued is shooting your self in the legs and yes both of them.
Lack of agricultural growth and its impact on the growing economy has been ignored by the government even though the central banker has been highlighting its failure on this account. In the election year this becomes a much more bigger problem.
Importing essentials, while being a short term measure, to cover the ground to arrest inflation, long term bilateral international agreements (like the ones being done for energy Security) can be negotiated for essentials to cover a planned period before our internal agricultural production escalates.
We need to think out of box to come up with solutions which are specific to us and the way in which we allow our parallel economy to grow and accept inefficiency.
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