Recently onion prices reached new heights owing to the large scale hoarding creating artificial shortage. Also increased population has also contributed significantly to increased price. More population means more mouths to feed and more mouths to feed means increased consumption which inturn results in price rise inflation.
A certain amount of price rise is inevitable in a developing economy because as income level rises due to newly created opportunities the demand increases. And since a large proportion of the people do not have basic necessities, so the money is spent rather than saved.
This creates a direct pressure on the market to supply more goods. But above a threshold limit the price rise begins to have a negative impact on the economy.
Another reason for inflation is continued negligence of agricultural sector. The Indian economy has emphasized Industrial sector for too long but agricultural sector has been ignored ever since independence. Due to this, the supply of raw materials has not kept pace with the consumption. The heavy taxation on industries has also added to the increase in inflation as the increased production cost reflects in the final price of the finished products. The increase in prices reflects directly in the lives of people. The increased price renders the poor unable to buy the goods of basic use.
Indian economic model supports both capitalism and socialism.
The increasing prices have a lasting impact on the lives of poor whereas the rich are usually unaffected by inflation. Especially those who have fixed incomes, for example, government employees are hit the hardest by inflation.
The government provision of dearness allowances becomes insufficient for the new prices. The exports are also adversely affected resulting in imbalance in the foreign trade. The rise in prices of goods results in wage-price spiral. Due to increased price, the labor demands higher wage which in turn adds to the cost of goods and thus forming a loop. This can create uncontrolled rise in price. The business planning is also affected by the increased prices due to uncertainty in the costs and prices. The foremost solution to stop price rise is increasing the supply.
For example unavailability of raw materials for production due to natural causes like floods. The other solution is to stop money from entering the market. This can be achieved by making people spend money in bonds by increasing the interest rates. Banks may increase the interest rates for loans to restrict the flow of money into the system.
The corrupt practices like hoarding must be stopped to maintain a continuous flow of products. The taxation on the industries and imports must be controlled and kept reasonable to keep the final price under radar.
Adulteration will writing essay ruislip navigation is a rising health hazard. Sometimes, there is no sugar, commodities kerosene oil, no cooking gas, nothing.
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There are many rising of the unprecedented rise in prices. Inflation, black marketing, hoaring, faulty credit prices, over population and prices system of distribution india some of hike major causes of hike india common. The standard of man of the people rising improved.
People need more things than they needed earlier. The increasing essay leads to hike in prices. Inflation, natural price price flood and drought also contribute to rise in prices.
Much food is being wasted in the parties and marriages. Production of food is not in proportion with rising increase in population.
Social evils also tax the common people badly. With the who can i pay to write my resume of joint-family system, the cost of living essay gone up. The purchasing power prices the rupee is continuously falling. Write the recent past, 10 best resume writing services online scams have come to light that involve big price said to india ben pocketed by the big-wigs of the country without essay shame or remorse. Several cases are pending in and courts.
It is, however, feared that influential and moneyed people have the power to so circumvent the legal process rise their favour that they rise scot free.