abhijit, what about the cost of living in those gulf countries? today, maybe you are not able to save much if you try to have a good life. But tell me sincerely, if you had graduated 15 years earlier, when India was in the shackles of the license-permit raj, what chance would you have even to get a decent job. In those days, unless you were from the IITs, you would end up with a job paying 3000-5000Rs, if you were lucky. Today, if one is educated, whether BE, BSc, BCOM or LLB, he has very good job opportunities thanks to the outsourcing boom and liberalisation.
In any growing economy, a somewhat high inflation is not unusual, since supply typically lags demand. This high inflation has given us a good wake up call, and if we can remove the supply constraints, through higher crop yields and increased manufacturing, better infrastructure and spread of retail chains, we will be able to take care of it in the next couple of years.
