Inflation is the phenomenon which is eroding Indian purchasing power for last four years. India is unable to get over from the impact of global financial crisis. This has led to worsening of leading indicators like Fiscal and Current Account Deficit, Interest Rates etc which is reflecting in sub par growth, low employment and mostly into persistently high inflation. This psychology is so well entrenched in the society that when ever you go out to purchase any goods or services, it is invariably high and that too with questionable quality.
Now, let me put focus on how government itself is further strengthening the vicious circle of inflation. Railway ministry has recently decided to round off the increased rail fare to next multiple of Rs. 5/. This is nothing but day light robbery. On the other hand, notes of lower denomination up to Rs. 5/ are no longer printed and this is also creating hassle to carry loose coins. This is also effectively moved now everything in the multiple of Rs. 10/. for whatever goods or service you would like to buy. Thus we are artificially creating and strengthening the tentacles of inflation across the society and country. The day is not far away when your taxi and cab will also charging in the multiple of Rs. 10/ in line with railways.
In addition, there are doubts that airfare will become come down with segregation of the services. Airlines would find ways to sustain current fares while coming out with dubious charges like web transaction service charge to boost there coffers. On the similar line, websites like Bookmy show.com levy service charge while booking tickets. It is highly objectionable as a consumer of the service I am entitled to buy ticket at what it is available to box office. In fact till some time back none of the website was charging any service charge. This should be vehemently opposed at every forum. All this further adds up to your inflation.
This persistent inflationary pressure has created dilemma for savers. Bank deposit rates are low in the light of consumer inflation. This is what reflected in the lower deposit collection of the banks over the years as savers are wise enough to diversify away to other asset class where they can expect real returns.
It is high time that we as citizens of India stand up and start raising our voice to the government to control the inflation. It can happen if they control wasteful expenditure, increase productivity and most of all reduce bottleneck to augment resources.
More in next column...
Akhilesh since when the government(especially the current one) started thinking on the lines of the convenience of the tax payers? Take the example of the Food Security Bill which is the pet project of The chairperson of the UPA- she is hell bent on passage of the same. Reasons are easy to see through- It will dole out Ultra subsidised food to the BPL family and taking the bait they will vote for the government. Who is going to bear the brunt of subsidy- people like you and me! But we do not matter since we form a miniscule of the voting population. Things are pessimistic at the best!
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