"It is a pre-emptive move, " said Abheek Barua, an economist at ABM Amro in Mumbai.

BBC: NEWS | Business | India raises rates on price fears

Mr Barua said he expects the central bank to cut rates in March and April.

BBC: Indian food market

Dr. Anitesh Barua, who led the study, is the William F.

FORBES: Does Better Data Lead To Better Corporate Performance?

"We are looking at a sharp and sustained downward trend, which should give the Reserve Bank of India the elbow room to go ahead at least with a couple of more rate cuts, " said Abheek Barua, chief economist at HDFC Bank.

BBC: Indian food market