When the price of products, services goes higher, we call it inflation. Inflation is not good for a progressive country. To distinguish between whether a country is doing well or not, always try to check the inflation rate graphs. If a country has decreasing inflation rate, or constant interest rate, remember the country and the leadership is doing well. On the other hand, if inflation is increasing dramatically/uncontrolled, remember that the country will face trouble/crisis in near future and the same ruling government is not doing well.
In this article I am going to explain the situation going on in India nowadays. I disclaimer that this article is only for educational purpose and we do not want to disrespect anyone/authority in any way.
Inflation is not just a temporary problem in India, or it is not just a problem of India. Whole world have to face inflation, because services are interlinked. So when we discuss about the inflation within country, we should keep in mind about various factors that affect the inflation graph. Since, the inflation problem is worldwide, so it will take huge time to explain everything about that, its not possible to cover up everything in concise way, therefore I have decided to talk the inflation in Indian context only.
Remember the age when you used to use Paisa for buying products. I remember, before 10-15 years, I used to give part of cent money to buy the products that we nowadays buy of Rupees 5-10. It is inflation that changed everything, the way of living is also changed. Indeed one side if the inflation rises, earning in some sectors also increase because of dearness allowances. But majority of Indians do not have any social security scheme or working in white colored job that pays them robotic increments. My topic for this article is for same kind of individuals, mainly I refer as tribes who do not have the meaning of inflation. So, now let's talk about the problem and reason of India gradually.
Before directly coming to conclusion, we sometimes listen that inflation is important for developing the nation. If inflation rises, the government of India or the relevant government will get sufficient money to ensure public transports, buildings, infrastructures, and most importantly hospitals. Yes, if the government imposes us more taxes in any form whether that is GST or some kind of other taxes, the government will be able to collect more money from us, and then the government has more chances of growth. But, if everything's price is gone higher, then living for those people in India would be completely impossible who live subsidized lives here. It is true that most of Indians do not pay taxes from there income, but every Indian pays taxes when they buy anything from market. So the ratio of getting money to government from public is always in floating way.
If inflation goes higher, it means the currency of India is being weaker and weaker in international platform. Now, similar happened in Venezuela, and all we know how crisis took place there. It is also obvious that in Venezuela many rich people were already existed, and they managed to survive but those people whose condition was socialist survivals, faced all the critical problems.
Post covid, where lakh of people lost their jobs, faced losses in business, now have to face inflation. This is all creating income gap in society. Increasing price on products or services is really not a good sign for India. Following the reports of RBI and other reputed organizations, it is clear that the conditions of the country would not be getting good for a long time, resultant the RBI has reduced interest rates in banking for a long time and it is not revised after many meetings. One side, government is pretending to provide free to some citizen, and other side citizens are facing inflation.
Giving more MSP (Minimum Support Price) on different products, grains to farmers will create social inequality on earning/income basis. One side where there are farmers who enjoy MSP and other subsidized and supports of the government, other side are some people who do not have any land for production of grains, and yet they live in unsecured financial environment. Most of these kind of people are belonging from tribal communities in India and they have to work in unorganized sector to maintain their daily livelihood. One side, whether they were buy the product in Rs. 100, now they have to buy of Rs. 500 because of the MSP policy of the government.
It is other thing, if we say government is maintaining the sustainability by providing free meals, grains to poor people. Alright! It is also dangerous for the nation if one side the price of these products are being increased and other side the government is providing these products for free. Let the government do not increase any amount in base price and try to control the inflation and let the people work in low income and resultant buy the same in low price.
Illiteracy is also a big problem to understand the difference between inflation and subsidy. On the papers, India is being literate, but school pass-outs do not even have the basic education of mathematics or any other kind of literacy. Many schemes have been launched by various institutions in India to impart the tribal community, but actually they do not work the way that should be. If government of India keeps providing free grains, meals to so called poor citizens, other hand if inflation is keep increasing continuously, the day is not far when imbalance would take place and we would be witnessing crisis in India.
On the other hand, if government is assisting the tribal communities by providing money, or free money, it will also lead crisis in near future, because providing money is not a permanent solution, but keeping control in inflation is the real problem. Happily, we accept giving small amount to poor to maintain their needs is justifying, but what would be benefit if the amount is now equivalent to half of the money they provided because of inflation. Inflation is not only because of the rising petrol prices in India, but the policies of Indian government to let the stack holders, businessmen to hold the essential commodities to create hike in price. Currently we are witnessing the same in India that resulted 30%-150% hike in almost every sectors. We have faced hikes in transportation charges, oil, milk, foods & grains, packet items etc. Initially it was propagated that the inflation is because of the coronavirus outbreak, and when everything became normal, a term coined that loss recovery is being done, but always it is not told that the government ignored the basis problems of common people. From the past, the crude oil price went down, and other energy sources have been invented by India, even our Indian government is leading the world on solar technology. So keeping hike in taxes and creating inflation countrywide is not justifying.
Many Indians, majoritarian tribes, do not have own land for farming, of if they have, they have small lands that is really difficult to cultivate sufficient income/production from there. Even the government cannot guarantee for social security and government jobs for these huge populated regime, so the authorities/Indian government must have to think curbing the inflation because inflation is bigger problem than any other kind of existing problems in India.
This article is not only concerning for the tribal communities in India but it has also concern for those individuals who fall in same strata. Many people in India are neither farmers nor having business or white color jobs. These people work in unorganized sector or work on daily wages. These people sometimes believe that if they get subsidized or free grains from Kota by the government, it will be sufficient. But if same goes in near future, and inflation growth rate remains same like nowadays, huge crisis will must happen and imbalance of income in society will take place, that will result something unpleasant happenings in India.
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