Politicians will do whatever it takes to be elected. In India they are even promising a huge lump sum to everyone just to receive a vote (check out our Twitter account @SimplyNoRisk). Clearly it doesn't make any sense, but as individuals we cannot avoid it.

So, how do Indian people manage to keep up with inflation? Basically, buying gold and land. Just for curiosity, check out the next chart. It shows gold paid in rupees.
Even though gold is going down nowadays, imagine a person with 25000 rupees at the beginning of 2007 invested in gold, today he would have 77000. Some will say that gold doesn't pay interests, which it is true. As an average, during this period the interest rate in India has been 7% (link). Compounding, 25000 in 10 years is approximately double, so it would have been a good idea to keep a good percentage of savings in gold also taking into consideration the poor level of politicians over there.