There is little chance of India's inflation rate going down in the medium term. If anything, the rate may go up. A rate of 6-7% need not be feared. It is only a very high rate of inflation (at least above 10%) that imposes significant efficiency costs.
The social consequences are not very disruptive, as it appears rural and urban workers, both in the organised and unorganised sectors, are having wage increases that are above the inflation rate. The losers would be pensioners, the unemployed and foreign purchasers of Indian goods (to the extent that rupee depreciation does not offset price increases). Trying to reduce the inflation rate at this point would mean a growth rate of below 7%- and that would be psychologically damaging to Indian and foreign investors. So the RBI was right to cut its reference rate earlier this month.
More in my ET column, Higher inflation is here to stay.