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Essay on Rising Prices in India - 950 Words

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Essay in very simple language with the boundaries of different words here. Here you can find Essay on Rising Prices in India in English language for 5, 6, 7, 8, 9, 10, 11, 12 or IAS, IPS Banking and other competitive exams students in 950 words.

Today India is facing one of the most important economic conditions. At any given time, Indians saw the horrific incident of rising prices today, the prices are rising like rackets and every day someone gets the increase in the prices of all the essential commodities. The pressure of inflation is doing a lot of mischief and the middle class families are getting Himalayan work to fulfill both ends.

In a developing economy, prices usually show upward trend. But if the prices continue to increase, then they cause people great difficulty. They are neither rich nor poor, nor leave the producers nor the consumer. They make economic activities uncertain and unstable, causing large unrest in the minds of the people.

Prices are expressed in terms of prices. When rupees or any other currency buys a lot less than it uses, and practically every item is paid more, then there is a problem of rising prices. In economic terminology, it is known as 'inflation'. Where there is a balance between supply of money and other goods and services, a serious problem arises. If the supply of more than the supply of goods increases, the available prices will increase.

Fixed income groups like salaried people, wage earners and pensioners, are the most helpless victims of inflation. As the prices rise, their actual income gets worse. Additional dearness allowance, which the government does not use restrictions from time to time because their purchasing power actually goes down. Inflation motivates businessmen to invest their money in non-productive properties, such as gold and ground, whose real value is not affected by rising prices. High prices also adversely affect the country's exports and distort the balance of foreign trade.

There has been a steady increase in prices in at least three major reasons in a developing economy. First of all, the programs of economic development generate large employment and wealth income and this increases the demand for basic consumer goods and services. New income is not reflected in savings proportionately because most beneficiaries have to spend most of the extra money received to meet unavailable requirements. Second, programs like economic development generate income of new money, and push-up demand of some goods is also done by the consumer, such as agricultural products, fuel, housing materials and so on. A third reason, out of which, can be seen as the first two special cases, there has been an increase in currency in the currency and the operation of the demand for supply and demand. Unless the production of basic consumer goods continues on a large scale, with the increase in the currency inevitably provided by the long-term plan, the cost of production of consumer goods also increases, is maintained at the old level. .

Many factors can be mentioned to explain the value addition in India. First of all, our economic plan has faced serious shortages from the beginning. During various Five Year Plans, while public expenditure is constantly increasing, production targets were never understood. Second, it forced the government to resort to deficit financing. As a result imbalance essentially became the cause of inflation. Third, the main factor responsible for value addition is that due to the heavy emphasis on heavy industries in the industries of our five-year plans, agriculture and consumer goods, people who produce essential commodities have been given insufficient attention . As a result, agricultural production has not kept pace with consumption. Fourth, in our underdeveloped economy, the first increase in income is always spent on food items. In other words, the level of consumption increases with the increase in income.

The cumulative effect is increasing pressure on prices. Fifth, there is tremendous growth in the population. About one million new mouths are fed every year. Sixth, are psychological factors that increase prices. Increasing expectations have increased in the increasing prices, resulting in the farmers and stockists collecting more and more shares, expecting further increase in prices. Seventh, the public has been heavily taxed on both the direct and the indirect. In an undeveloped country like us, it adds to inflation pressure for the number of reasons. Heavy tax on industries is ultimately given to consumers, thus increasing the cost of their lives. Heavy taxation also discourages even more production. The defective tax structure has encouraged the accumulation of tax evasion and black money and smuggling. Eighth, most Indians have no community consciousness. There is no organized consumer resistance for price hike. The ninth factor is faulty distribution and marketing system. The last, but not least, the rise in oil prices in the international market was the international factor.

To solve this difficult problem, some drastic steps should be taken. First of all, the entire strategy of the plan should be changed. Heavy industries and agriculture and consumer goods should pay close attention. Second, increasing government administrative expenditure should be greatly reduced as it is mostly insufficient and non-development expenditure. Third, tax burden should be reduced to the public. And finally, any depositor, beneficial or black marketer should be left with penalties. As long as they do not get crushed with heavy hands, the common man has to suffer.

Our government is quite aware of the magnitude and impact of the problem. He has already taken several steps to check the inflation trends. Now we need strict enforcement of these steps. Apart from accelerating growth and banning the money supply, we need an effective delivery system. We also need the support of social workers and other public minded citizens to keep an eye on the unethical practices of shopkeepers. But till the growth of our population is not investigated, the situation can not be reduced.
 

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