Main reason of inflation is fuel prices.
By
Deven Bantwa, Curreny Investment Advisor, Angel Broking Ltd
| 11 11 2011 11:00:42 +0000
TOO MUCH MONEY CHASING TOO FEW GOODS IS INFLATION.. THERE ARE 21 TYPES OF INFLATION AND ONE AMONG THEM IS RUNAWAY INFLATION.. BUT WITH REFERENCE TO DEVELOPING AND UNDERDEVELOPED COUNTRIES WHEN THE GOVERNMENT TAKE INITIATIVE TO ADDRESS CERTAIN KEY ECONOMIC ISSUES LIKE AGRICULTURE- INDUSTRY INTERDEPENDENCY THERE EXISTS INFLATION LARGELY BECAUSE OF THE RATIO OF GROWTH. WHEN TOO MUCH MONEY IS PUMPED IN TO THE CIRCULATION IT WILL INCREASE THE VELOCITY AND TO CONTROL SOME MONETARY MEASURES ARE UNDERTAKEN. ANOTHER KEY ISSUE IS THAT OF SAVING INVESTMENT RELATION WHICH DECIDES EMPLOYMENT HAVE TO BE ADDRESSED PROPERLY. ANOTHER ASPECT IS THAT OF VICIOUS CYCLE OF POVERTY HAS TO B ADDRESSED WITH PROPER CAPITAL FORMATION. AND ABOVE ALL WHAT WE NEED IS A VERY BIG PUSH THEORY TO TAKE US TOWARDS THE STATUS CALLED HIGH MASS CONSUMPTION WHICH LIES ONLY IN THE HANDS OF GOVERNMENT.
By
sudhakar , BUSINESS CONSULTANT
| 06 26 2011 16:11:46 +0000
In the backdrop of recent developments in global commodity prices, this study provides analytical and empirical perspectives on imported inflation in the Indian context. For more details see this link:- http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2030
By
sampath , e-support officer, KNOAH SOLUTIONS
| 06 26 2011 15:00:51 +0000
I agree with Mr. Sudhakar. Inflation is tagged to so many influential factors including the local & international politics. It can not be looked as a separate identity . Demand & supply (imports & exports), monetary policy revision, structured taxation to reduce burden on mass, Foreign reserve etc. INR is equated to other currency such as $. So does fluctuation in a place whatsoever manner is handled, does affect the inflation. Product needs to get its due money value that is not happening here in India. Marketing policy needs revision. Black marketing is also a source for inflation.(I heard in UP where Rahul carries out Dharna, they bought for land Rs 600/sq. ft & selling to Rs 3000/ sq.ft for construction. Do not you see the inflation.)
I think ,better we need to integrate financial management study as a subject in our school curriculum. So that, the coming generation does understand it practically & safe guard to protect them.
By
KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed
| 05 12 2011 04:50:56 +0000
THE NEED OF THE HOUR 1). TIGHT MONETARY POLICY, 2) DOUBLE DIGIT GROWTH RATE 3) OIL PRICES 4). DISGUISED UNEMPLOYMENT IN AGRICULTURE 5). NO INVESTMENT AND ABOVE ALL PLETHORA OF UNDERUTILIZED AND UN UTILIZED RESOURCES. IF ALL THESE FACTORS ARE NOT PROPERLY ADDRESSED THIS BOTTLENECK WILL KEEP INFLATION PERMANENT . TO NAME A FEW TYPE OF INFLATION 1.SPIRAL 2.GALLOPING 3. BOTTLENECK 4. RUNAWAY. THERE ARE 21 TYPES OF INFLATION.
By
sudhakar , BUSINESS CONSULTANT
| 05 08 2011 13:35:18 +0000
THE MARGINAL PROPENSITY TO CONSUMPTION AND PROPENSITY TO SAVE NEED TO IN TANDEM.THE VELOCITY OF MONEY HAS TO B CURTAILED. WHEN TOO MUCH MONEY CHASING TOO FEW GOODS IT CLEARLY DEPICTS THE MARKET PRICE EQUILIBRIUM NEED TO B CORRECTED.
By
sudhakar , BUSINESS CONSULTANT
| 05 08 2011 04:32:57 +0000
We are not allowing the government to address the common man woes, as they are in a defencive mode to combat new scams tumbling out day in and day out!
By
S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner
| 05 06 2011 13:03:08 +0000
In india we continuously facing problem of rising goods prices.Companies says that we r increasing prices for minimizing d loss.but it didn't sounds good.As indians consume lot & also pays high for that,then how can they get loss.I tell u d real scenario that was happen with me.
Few days ago i went to wholesale market to buy a pair of badminton as it is just 4km from my home.When i ask d dealer about price of pair of badminton he said that he sold it to 35rs for bulk but as u want only 1pair so i will give it to u in 45 rs. I take that and came to home.while returning i ask the price of badminton in several retail shops.Everyone selling this on 100rs. On bargaining they are ready to give it in 90rs.
So what is this. Is this is business or this is loot.
We r paying the much higher price than standard price.
but who will get benefited from it ?
But because of this out of control pricing the consumer affected worse.
So who is responsible for this irregularities ?
By
Trifinites , Software Developer, Neopact Systems
| 05 06 2011 10:55:56 +0000
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Listed below are some major reasons: Excessive and wasteful Government expenditure. Total lack of long term policies and zero follow up. Self servicing governance with no care for priorities and choice of issues. Complete disconnect of rural economy with planners and even urban public.
By
Ravindra Sharma, Managing Consultant, CHEF-India
| 05 18 2011 10:58:26 +0000
I agree with the views posted by friends from this side. They have all well explained the subject matter. Thanks for the referral Ms.Purvi.
By
NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd
| 05 16 2011 18:44:44 +0000
Thanks Purvi for invite Actuaaly Government should control the corporates and private sector companies but that seems to be not much possible and hence Guv controls the rate ie just hikes the rates. Inflation is a by-product of faster growth. It is a cyclical nature of growth-inflation. ie Earn more to spend more just to make life more luxurious and secured. There is nothing like inflows/outflows/debts/loans/credit ratio. It is more marketing,more sales,more earnings,business development,more spendings,more credits,more loans,more bad debts...and continues.... If one wants to really control the inflation,he should have limits on every phase of the above cycle and Guv should regulate the same. Public and private sectored companies blame Guv. and Guv blames Companies. Similar for people blame Guv and Guv blames shortage of resources... In fact both are equally responsible for this inflation. Be aware, otherwise we also will have a meltdown like Western countries...
By
Dhawal , IT Consultant, Electro Industries
| 05 10 2011 14:13:06 +0000
Thanks Puravi for referral. I am in total agreement with Aarti's point of view.
By
Rathin Deb, Advisor and retail consultant, currently as Branch Manager, Tower Infotech Ltd
| 05 10 2011 06:52:31 +0000
Inflation is the main enemy of economy.It is DON for all finance field.IT reduces purchasing power of money and rises poverty and debt.Indian inflation is due to over expenses of money by leaders and rude behavour of RBI.We are going towards dividing India.
By
LAXMAN KESHWALA, Freelancer, Telecom/ISP
| 05 08 2011 20:53:09 +0000
Indian Economy has various verticals for inflow and outflow of money. Most of them beyond the strategic control of the Government or RBI. The root cause behind such a galloping inflation is lack of understanding for the management of the Government aided Funds, and Foriegn Capital inflow. Politically triggered Public Infrastructure Funding is among the biggest culprits. Tenders are taken for buildings/bridges/roads for 30-40 years of maintenance free construction, and we end up repairing them every year. this creates a huge economy gap and rich-poor margin gap. that triggers inflation, hitting the poor people more than ever before. The Venture Capitalists, FIIs, and FDIs find Indian Economy as perfect Breeding grounds for their Capital. When their Desired Capital Maturity is reached, they suck out all their Capital, leaving Indian Economy suffering, leading to more currency prints, more loans, and more trouble for the Common Indian Society.
By
Sujeet Vishwakarma, Managing Director, RCA Group
| 05 08 2011 13:01:04 +0000
I agree with you Aarti. It would be a good first step for temporary amelioration of the symptoms of our economic disease(s). Personally, I am fine with taxation. I am fine with black money as long as it is spent WITHIN India. What I'm worried about is compound interest on loans in general. This system of having to pay off a lot of money very quickly is pushing our society into overdrive. Everybody wants more money quickly - to pay off his/her loans - and so everybody is raising his/her prices. Employees expect more money, auto drivers want more money, vegetable merchants want more money, farmers want more money, and so on. The list ends only after enumerating every conscious individual under some group or the other. We all want more money - quickly. This is making everyone work harder as well. As a consequence, in general, we, as a nation, don't have so much patience to stretch things out. This further puts pressure on the entire system because everything is interlinked. And so we are vibrating because other things are vibrating and they are vibrating because we are vibrating. The system is feeding on it's feedback. Like a speaker and microphone combination which sometimes outputs an intolerable shriek. All of this is based on the system of compound interest. Instead, if just simple interest is applied, growth would slow down and become more manageable. Inflation would be present but also slow giving each generation of citizens a chance to do things correctly. Unfortunately, for the whole world, that would be shocking to economists & bankers because then they would have very less money to play with and consequently, very less control. This decision should have been taken in the early years of independence. Now, it is perhaps too late. We're going at such high speed that we don't take considered decisions which stand the test of a reasonable amount of time - say, for at least a generation. We have very intelligent people who are urban planners and we cannot allow them to build clean and comfortable cities for us. We cannot cope with the ever increasing demand for more capable and more efficient infrastructure and services (e.g. garbage service). As a nation, we, the common people, seem completely un-interested in the welfare of the nation. There ARE many people who have made sacrifices and are making all kinds of sacrifices (sometimes their families, and their lives as well) in the service of the nation. But both as a nation and as common individuals, if we do not do the right things soon, we will have a MELTDOWN. Cities are gobbling up farms and farmers. Farmers are gobbling up forests. In hardly another 100 years, there may not be much green left. The intelligentsia of this country, as well as those who have the will AND means to fight for right, should rise to the occasion and collaborate for a plan to steer the nation in the right direction.
By
Isaac Madhavan, R & D Manager, Test prep company
| 05 07 2011 20:05:57 +0000
Hmm well its not as tough as u guys think. A govt agreed earn maximum why taxation, but like chinese did (well yes restricted market and forex value also helped them) they went out and had set up PSUs which believed in higher profit and customer satisfaction. Don't believe me ?? China Petro is worth trillion dollar and china Mobile is an huge success. Companies like these work as an addition revenue generator and thus eases heavy taxation but how can you explain this to illiterate MPs and MLAs ??
By
Sarabjeet Singh Johar, BMS student, Mumbai University
| 05 07 2011 17:00:57 +0000
it's not an easy task to curb inflation in a day. the govt. and the people must follow their roles honestly so that it can be stopped at grass root level.
By
puneet , Manager Admin
| 05 07 2011 14:58:45 +0000
To reduce inflation, the Government has to first change its policy taxation on oil products. It is levying all types of duties on petroleum. diesel and cooking gas. More than 75% of the cost of these petrol goes for taxes and dealers' commission. If these are changed from ad-value to per-piece basis (fixed rates per litre), it will go a long way in controlling inflation. Reduce the taxes and make it fixed per litre. You will automatically see the inflation tumbling down to lower levels.
By
Raju V P, Senior Manager, an International Bank
| 05 07 2011 14:48:25 +0000
The only way we can crub the inflation and move ahead of any country is just by making sure all the policies are put to effect efficiently. The right amount to tax payers cash flow is not channled in the right path, the day this happens we all will be a very rich and vibrant country; which seems a distant dream looking at the current political senario.
By
Dhruv Dutta, CEO/MD/Director, Myrmidon Consulting
| 05 07 2011 12:22:11 +0000
May be due to wrong policies of our govt. or wrong ways of implementation of reforms. Thanks for referral, Purvi.
By
SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd
| 05 07 2011 11:47:02 +0000
The markets are still under the control of the Govt. At the same time, Govt. is not able to exercise total control. Govts. are adopting adhoc measures. Some of the influential people in the Govt. are making mockery of the rules and regulations. There are stocks in Govt. go-downs. Neither their are released to the market nor they exported. They are allowed to get wasted in godowns even after the Supreme Court directions. This shows the lethargy of Govt. and its machinery. Prices of most of the commodities are touching recorded high not because of dearth of supply but because of failure of policy makers. Govt. is neither proactive nor reactive. Its just lethargic. This is the major cause of present inflationary trends.
By
Srinivas suravajhala, Asst. Manager.
| 05 07 2011 05:49:15 +0000
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