Wednesday, 19 September 2018

ESSAY ON THE PRICE RISE IN INDIA

ESSAY ON THE PRICE RISE IN INDIA

THE PRICE RISE IN INDIA
The rising of prices is a worldwide phenomenon. It is acute in developing countries. It affects everyone; the rich can however afford it.  The victims are the poor in society. The manufacturers and merchants can make good profits. 

When prices increases people demand higher wages and salaries, when they cannot put up with rise they resort to strike and demonstration, when the demands for higher wages and salaries are made with manufacturers increase the size of their goods. The government too increases taxes. Then fresh demands are made thus this vicious circle continuous. 

Those who have fixed salary wages and pensions are in a tight corner when prices rise they have difficulty in making both ends meet since their purchasing power remains reduced. The additional dearness allowance that is usually sanctioned does not give them any relief.

There are various causes for the rising prices. Our economic planning has some serious drawbacks. We implemented 7 five year plans. The public expenditure increased but the targets of the plants could not be achieved. This made the government Resort to deficit financing. The result was inflation. 

The administrator prices of most of the Agricultural Products have created massive increases in recent years. There is sufficient room to evade taxes and this leads to the growth of Black Money. There is a parallel economy mainly created by a smuggler hoarders etc. 

Population explosion more and more frequent rise in the price of Petroleum products in electricity charges and non development expenditure and the government make the masses pay through the noses. 

At present the public distribution system does not cover all the goods or provisions required by the majority of the consumers in the country. If there is any scarcity of them timely action should be taken by the government to export and sell them at reasonable prices. 

The Government should remain vigilant and take severe action against those who are engaged in hoarding black-marketing and smuggling. The existing taxation laws have to be amended so that no one can evade paying taxes. Strikes and bandhs must be avoided as far as, possible. The people should try their best reduce fatality. 


The consumers should realize the rights they have and take effective steps to get their grievances redressed. Sincere efforts have also to be made by the Government of India to check the growth of black money. According to an estimate made by the IMF, India is the country that has the highest growth of black money in the world. Production should be augmented for the increasing needs of the people. 

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