The problem of inflation is a major problem under the economic problems of India. The rate of increase in the prices of goods is so rapid that when you go to buy an item again, the value of the article has increased more than before. The real depiction of this inflation increasing day and night by fourfold has been done in these lines of famous comic poet.
Who listens to the complaints filled with pain in the pocket?
Seeing this inflation, remember those days coming.
Remembering those days coming, keeping money in your pocket,
Used to bring the deal by filling the bag from the market.
The era pushed into the credit of the currency,
There is money in the bag, the deal is in the pocket.
Reasons for Inflation – There are many reasons for the increase in the price of goods i.e. inflation. Most of these reasons are economic. There are also some reasons, which are related to social and political system. A brief description of these reasons is as follows:
(a) Rapid increase in population – Explosion of population in India has contributed a lot in terms of raising the prices of goods. The production of goods is not happening as fast as the population is increasing. The natural consequence of this has been that the prices of most goods and services have increased continuously.
(b) Increase in agricultural production-expenditure- Our country is agricultural. Most of the population here is dependent on agriculture. Over the years, the prices of agricultural implements, fertilizers etc. have increased. As a result, the prices of the goods produced are increasing. The prices of most of the commodities are directly or indirectly related to the prices of agricultural commodities. Due to this, when there is an increase in the agricultural price, then the prices of most of the commodities in the country are definitely affected.
(c) Decrease in supply of goods by artificial resources – The price of goods is based on demand and supply. When the supply of goods in the market decreases, their prices increase. For the purpose of earning more profit, traders also create artificial shortage of goods, due to which inflation increases.
(d) Money spread – As the money spread in the country increases; In the same way, the inflation also keeps on increasing. Since the time of the Third Five Year Plan, there has been a situation of money-spreading in our country, as a result of which the prices of commodities are increasing. The thing which was once available for one rupee; Now for that one has to spend up to Rs.
(e) Relaxation in administration – Generally the economy of the country depends on the nature of administration. Or if the administration fails, the prices go up; Because the weak administration could not control the merchant class. In such a situation, there is an uncontrolled and continuous increase in prices.
(f) Deficit budget – For the implementation of the plans, the government has to arrange a large amount of capital. In addition to other measures for the provision of capital, the government also adopts the deficit budgeting system.
This deficit is made up by printing new notes. As a result, the money supply in the country exceeds the requirement. When these notes reach the market, they increase the prices of the goods.
(g) Unorganized consumer - The consumer class who buys goods is often unorganized, while the sellers or business organizations form their own organization. These organizations decide what to value the goods and in what quantity to sell them. When all the members follow these policies, the prices of goods start increasing. Due to this increase in the prices of goods, consumers have to face many difficulties.
(h) Unequal distribution of wealth - Unequal distribution of economic resources in our country is the main reason for inflation. Those who have enough money, they buy the means and services by paying more money. Traders take advantage of this tendency of the rich and the inflation increases. In fact, it is necessary to have equal distribution of wealth to end various socio-economic inequalities and the disturbed environment prevailing in the society. In the words of poet too-
no peace until
Happiness should not be part of a male,
no one has too much
No one should be less.
Difficulties arising as a result of inflation-
Inflation is a curse for the citizens. Our country is a poor country. The means of income for most of the population here are limited. Because of this ordinary citizens and weaker sections are not able to fulfill their daily needs. Unemployment makes this difficulty even more complicated.
Traders create artificial scarcity of their goods. Due to this there is an uncontrolled increase in the prices of goods; As a result, low-income people are deprived of many goods and services. Rising inflation encourages black marketing. Traders hide the goods in their godowns to earn more profit.
The economy of the country weakens due to inflation. Adequate resources are not available for welfare and development related schemes. Even the resources available for development are insufficient; As a result, the country lags behind in the race for progress.
Suggestions to remove inflation – If inflation continues to increase at the same rate, then a big obstacle will be present in the economic development of the country. This will give rise to various kinds of social evils; Therefore, it is absolutely necessary to eliminate this demon of inflation.
To overcome inflation, the government will have to make time-bound programs. Farmers will have to make available fertilizers, seeds and equipment etc. at cheap prices, so that the prices of agricultural products can be reduced. To stop the spread of currency, the deficit budgeting system will have to be abolished or the system of printing new notes will have to be stopped to meet the deficit.
Continuous efforts have to be made to stop the growth of population. The government will also have to try that the power and resources should not be limited to a few specific people and the money can be distributed in the right proportion. Co-operative distribution institutions can play an important role in this direction. For all this, the administration will have to be made agile and proper and the employees will have to work with full devotion and devotion.
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