Following are the reason for inflation in India:

1. Rapid increase in supply of money: In an economy if there is rapid rise in supply of money in compare to rise in production of goods and services then excess money chases comparatively less production. It leads to rise in aggregate demand and rises prices in the economy. 

2. Low growth rate of industrial and agricultural production: Due to less production in industrial and agricultural production aggregate demand exceeds aggregate supply give rise to inflation in the economy. 

3. High public expenditure: Increase in liability due to economic growth, increases public expenditure. Rise in expenditure by government leads to rise in aggregate demand and do not increases aggregate supply, it gives rise to inflation in the economy. 

4. Other factors: Rising population leads to rise in aggregate demand. Costly imports, high minimum support price, increase in income level, increased level of indirect taxes, rise in wage rate, hurdles in increasing industrial production leads to rise in inflation.