New Delhi, Jan. 8 -- Last month, the Reserve Bank of India's (RBI) governor characterized the Indian economy as being in a "Goldilocks phase," implying a fortuitous period of low inflation and high growth. Factually, he was correct. India's GDP estimate for the quarter ended in September, at 8.2%, exceeded expectations, while retail inflation measured by the consumer price index (CPI) was just 0.25%, with its rural element posting a 0.25% decline in prices.

Much of India's unexpected economic buoyancy is attributable to a deflationary trend, including a 3.5% rise recorded in agricultural output in constant prices.

But our national accounts also show that growth in agriculture in current or nominal prices-that is, with the effect of infl...