Price Rise in India
India – A densely populated country
India is a densely populated country. The consumption of consumer goods here is quite high. The shortage of many essential things is the main cause of the rising of prices of these items.
Another important factor which causes the price rise of the essential items is the fluctuation of prices of the petroleum products. India is not self-dependent in the matter of petroleum products. She has to purchase petroleum products from the international market and only a few countries across the world deal in such products. Some petroleum is found in Mumbai High and at other places in our country, but that is not enough to fulfil the needs of such a vast country as ours.
There is no doubt that high officials in different government departments need petrol for their cars and other vehicles. Aeroplanes also run with petrol. The army needs petrol in large quantities. Some big businessmen and industrialists also need petrol for their vehicles, etc. But if thorough scrutiny is done and unnecessary consumption of petrol is avoided, the consumption can certainly be reduced to a considerable extent. What is true of petrol is true of other things also. For example, there is so much wastage of food items at the time of marriages and other festive occasions. As far as wheat, rice and other food grains are concerned, are at least ten per cent of the total produce eaten by rodents. They also get rotten in large quantities due to a lack of storage facilities. The same thing happens with vegetables and fruits, while the poor and even not-so-poor hardly find it possible to afford them even in moderate quantities.
Role of Management
In India, the management and worker relations are not so good. The result is that the workers have to go on strike frequently. The net result is the fall in production. Also, the management of flood and famine control in India is not quite up to the mark. This results in washing away or withering away of crops as the case may be.
The businessmen and industrialists are also generally very unscrupulous people. They, along with the bureaucrats, have formed a nexus or census with the politicians, and thus they loot the country. They get loans from banks which they do not return. They hoard essential commodities to create artificial scarcity in the market and then they find it easy to increase prices and indulge in the black market to get huge profits.
The salaries and taxation system
The salaries of the government employees are increased too frequently. It results in the circulation of more money in the market which raises demand and hence prices.
The taxation system in India is also faulty. Many people who have to pay heavy taxes feel it necessary to get themselves compensated by increasing the prices of their products. The axe actually falls on the common consumer.
India is also under the burden of a big debt which may ultimately lead to a debt trap. The economists should join heads to overcome this problem.
To overcome the problem of rising in prices of essential commodities, so that the common man has not to suffer, it is essential that some stringent positive steps are taken.
Hoarders and black Marketers
The hoarders and black marketeers should be dealt with severely. Similar should be the treatment of tax evaders. The honest tax-payers should be honoured to encourage the people to pay taxes on their own. Even otherwise, the taxation system should be remodelled so that it is rational and not arbitrary.
Infrastructure and Debt
Strikes and lock-outs should be banned. There is no doubt that India is still a developing country that needs a lot of infrastructure for its growth. Such an infrastructure needs huge capital investment as in steel, cement, etc. This leads to a price rise. But that is unavoidable.
All wastage on luxury items, particularly on import of such items should be stopped. Exports should be upgraded. Similarly, if some other steps are taken in the right direction, prices can be controlled to a great extent if not stopped from rising altogether. Above all, the rapid increase in population must be checked. Otherwise, all our other efforts may be futile.