What are the disadvantages of inflation in india?

Question

What are the disadvantages of inflation in india?

Answer 1

Inflation no doubt is outcome of a free Economy aimed at progress. But when it is not equipped with strict controls/norms then people take freedom to enjoy benefits without worrying about general public. Result of increase of income should not necessarily result in price rise but it happens and inflation coupled with rising prices brings inequalities which can never be corrected. Corruption goes on increasing, poverty also increases. In spite of increae of production, people have to pay high prices for the products.  

Answer 2

disadv of inflation anywhere is if prices are going up faster than your income, you can't buy as much as you used to or it costs more to buy the same things

Answer 3

Note: Inflation is an indicator that the prices of things have gone up and does not mean that the prices will go up...

1. Lower retain-able income due to higher expenditure.

2. Expensive loans burdening those who have taken loans on floating rate and also shelving or postponing plans of many to most people.

3. Increase in raw materials might further increase prices such that a lower inflation number overall does not really mean lower price of final goods.

4. There is problem of complacency - with increase of fuel price auto prices for example have gone up. Even if the prices come down later does anyone think that the prices will be revised downwards?

Answer 4

    Most of the people in INDIA are near the poverty line. And all of them are affected very adversely by inflation. They will have to face a financial crunch most of the times.

    It also tumbles the economy and reduces the demands in many sectors which are indirectly affected by infation.

Answer 5

As regards market concerned once inflation touches high investors think bad news automatically market looses the supporting levels. But in actual life our pocket loooses more money

Answer 6

Inflation and delflation are the inherent features of any economy. Inflation is not always dangerous to the economy and at the same time deflation is more dangerous than inlfation.

The basic reason why people find inflation dangerous is Imbalance of distribution of income in the country, which is very high in India.

This is basic the reason why poor people suffer from inflation. A rise in the price of grains affects a labour but not a software engineer. Otherwise there should not be any problem with inflation because there will be increase in income also.  

  

Answer 7

Disadvantages inflation india long  think theory new yuva.so that very poor country.

Answer 8

inflation as you know raises the price level of essential commodities. even before inflation our buying capacity is low when compared to other countries. this will make the situation so worse. automatically bank interest rates will be higher. so farmers and middleclass people who plan to adjust the inflation by getting loan from bank will withdrew their intention of gettin loan.

    

   flow of money is in hands of few.

   while to govt the resources for planning willbe constant but expenditure will be high. so they stop their plans till inflation goes off. that again affects public.

    In nation level export rate will be low while importing of goods will have a high exp. this discourages people who involves in this and they may also dropout their plans.

Answer 9

Inflation means more money chasing few goods and services. So naturally disadvantages of Inflation in India should be price rice.

Goods and Services will be dearer and common men will find it difficult to make both end meet.  

Answer 10

Social unrest in the bottom of the economic pyramid due to lack of basic needs in the short term.

Severe impact on long term governance of the country due to short term wins by local governments..