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Essay on Ination in India (Problem of rising prices)

On March 18, 2015 By Ajit Sen
Category: National Issues of India

This article discusses the ination, the current situation, the causes and the means to control ination in
India.

Inationin India
Ination refers to the rise in the price of goods and fall in the value of money. Ination refers to the problem
of rising prices.

The problem has been with us for a long time now. The trend of rising prices in India has, in time, aroused
dismay, consternation and anger.
It has been witnessedthat with the passage of time, the rich have become richer and the poor still poorer. In
spite of a bad agricultural year, it is not scarcity thatis troubling people so much as the continuing erosion

of their purchasing power. Hence, we are nowhere near the goal of an egalitarian society which we had set
out to achieve.
Also read: Problem of price rise in India.

Current situation
The current rate of ination is alarming. The rapidly increasing prices in India has been a topic of discussion
at all levels during these days.

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Economists and some other people have been attempting scienti1c analyses to:
determine how far the prices have risen,
why they have risen,
by what methods they can be held in check, and
how far those methods can be successfully.
While all this has been going on, people have been patiently suffering, and for all we know, will continue to
suffer for a long time.

Causes of Ination in India

In-spite of the fact that India has witnessed huge economic development in the past 10 years, yet we are
not able to control ination. It is sure that something has gone wrong somewhere. There are many reasons
for Ination in India:
There has been a lack of a social awareness in general which has prevented the bene1ts of planned
development from percolating to the lowest levels.
There has been anincrease in the cost of living.
Lack of control and check over government spending.
Hoarding of essential commodities by greedy traders.
Inadequate mechanism to control and 1x the prices of essential commodities in the marketplaces.
The bene1ts of government spending does not reach the common man. There are inadequate checks in the
government-spending.
It would not, however, be correct to place the blame wholly at the door of the government or the trader. The
consumer is no less to blame for the state of affairs. Some consumers allowthemselvesto be robbed for
fear of a precarious supply position and consistently adverse price trends. Such practices not only deprive
the country of much-needed resources but also serve as bad examples for those whose who cannot afford
to pay such high prices.

How to control Ination in India?

Ination can be controlled byclose collaboration and effort of both the government and consumer.
Higher Interest rates:Monetary policy can have an effect on ination. At a time when a country witnesses
high ination rates, the Government often increases the interest rates. High interest rate is a mechanism to
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control ination.
Suitable Distribution System:Inationdirectly effects the life of the common people. In order to reduce the
danger of runaway price increases in the future, it is very necessary that a suitable distribution system
should be developed.
Proper Checks:There should be a system for proper checks to ensure that traders does not charge excess
money for the commodities.
Control Hoarding: Some traders indulge in hoarding of goods. They create arti1cial demand for the goods
and charge high prices for the goods. The government should ensure that such malpractices doesnt exist
in society.
Price Control:The prices of all the essential commodities of daily use , such as rice, wheat, potato, milk, etc
should be 1xed and controlled. And adequate measures should be taken to ensure smooth supply of these
items.
Buy at Fair Price only:Some consumers allow the greedy trader to charge high prices for essential items.
They pay very high prices for fear of inadequate supply in future. This practice should strictly discouraged.

Related Posts:
1. Paragraph on Problem of Price Rise in india
2. Essay on Economic Development in India
3. Essay on Ination in India: Problems and Government Initiatives
4. Paragraph on Early Rising
5. Short Paragraph on Advantages of Early Rising
6. How can government control ination?
7. Bene1ts / Advantages of Moderate Ination
8. Ination: Types, Causes, Effects and Remedies
9. Paragraph on Ination: Introduction, Causes and Control Measures
Category: National Issues of India

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RELATED POSTS
1. Paragraph on Problem of Price Rise in india
2. Essay on Economic Development in India
3. Essay on Ination in India: Problems and
Government Initiatives
4. Paragraph on Early Rising
5. Short Paragraph on Advantages of Early Rising
6. How can government control ination?
7. Bene1ts / Advantages of Moderate Ination
8. Ination: Types, Causes, Effects and Remedies
9. Paragraph on Ination: Introduction, Causes and
Control Measures

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