Professional Documents
Culture Documents
com
http://www.preservearticles.com/201103254698/rising-prices-in-india.html
stocks, anticipating further increase in prices. Seventhly, there has been very heavy taxation on the publicboth direct and indirect. In an underdeveloped country like ours, this adds to the inflationary pressure for number of reasons. Heavy taxes on industries are ultimately passed on to the consumers, thus increasing their cost of living. Heavy taxation also discourages greater production. Defective tax-structure has encouraged tax-evasion and accumulation of black money and smuggling. Eighthly, majority of Indians have no community consciousness. There is no organized consumer resistance to price rise. The Ninth factor is the faulty distribution and marketing system. Last, but not the least, was the international factor, increase of oil prices in the international market. In order to solve this difficult problem, some drastic steps must be taken. First, the entire strategy of planning should be changed. There should be equal attention on heavy industries and agriculture and consumer goods. Secondly, the mounting governmental administrative expenditure should be drastically curtailed as it is mostly wasteful and nondevelopment expenditure. Thirdly, tax burdens on the public should be reduced. And finally, no hoarder, profiteer or black marketer should be left with impunity. Unless they are crushed with a heavy hand, the common man is bound to suffer. Our government is quite conscious of the magnitude and implications of the problem. It has already initiated a number of steps to check inflationary tendencies. What we now need is a strict enforcement of these steps. Apart from accelerating growth and imposing curbs on money supply, we need an effective distribution system. We also need the support of the social workers and other public minded citizens to keep a watch on the unethical practices of shopkeepers.. But nothing can mitigate the situation unless the growth of our population is checked.