Why Indian inflation is growing up?

Question

Can you suggest to control Indian Inflation.

Answer 1

no professions in politics

CHANGES SUGGESTED

drastically first develop the lower sectors

introduce money in middle sectors

so that even the lower class people will not be affected by the price changes

the government has the central control over the nation so their intervention will stabilize the economy

for example: increase tax

introduce money in low sectors and vice versa

increase the rate of interest etc

Answer 2

let me assure u no action resukting in an overall positive outcome exists which can controll indian inflation. infact the rate is expected to eceed targeted nominal gdp growth rate this year! but increase in supply and public support(it has crowding in effect instead of crowding out effect in india), will surely be able to tame it a little later not causing causing any damage. in fact political scenario is misinterpreting and inflating the harm adding fuel to fire... the economy is moving with such a high momentum that policy could hurt investor sentiments and even lead to b.o.p crisis. the reasons are twofold, one is off course  the fuel supply which has not increased at  a rate to meet demand, this has c

aused an increase in fuel prices, again fuel is a basic feed to all sectors, result, inflation............................

the second? rapid globalization and poor implication of preventive measures, which as implemented world price at most places gradually, without implementing world-class technology what i mean is it is the natural reaction of speculative forces to drive products out of local markets this is countermovement thesis when it's a concious effort of any nation eg depriciation, beggar thy neighbour polices etc. it's more serious.............................

see, an increase in rate of interest may also lead to crowding out but a decrease may lead to recession! controlling inflation is very risky, exact statistica needed to decide it, but most of us feel the increase in last year added fuel to fire, demotivating investor conidence and thus increase in supply;

w ee dont need to simply react to us policies of wea;th management, we need to create our own , besides our interests in k.p.o. ventures and more expensie issues rather thasn simler technology is a concern for fast development of h.r.r to thaAT level may not be possible, above all as a concluding remark,  i would say domestic fuel rise could hav been tackled more responsibly bu g.o.i. by irradicating  high rates of black marketing......  govt. needs to start public support ratjer than int suppliers, poor development of local markets, unwilling ness to imply c.n.g. etc. lead to poor performance on international front and high susseptibility

besides a country like india should never globalize agriculture, oharmacy etc. despite criticisms it may be argued that gains r sporadic and much less w.r.t. risks and costs,, in nations with poor agro- productivity inflation fluctuations occur due to lack of confodence towards govt policy a poor distribution framework....

to conclude, it might be said the giant of liberalisation once let loose has taken a demonish shape and care is not taken to manipulate supply sides trends, it'll continue.....................

Answer 3

We have pumped lot of money (Rs.7100000000 million )in the hands of buyers through exemption of agriculture loan and Rs.100000 million for Gurdwaras. Plus return of undisclosed black money from Swiss bank to India. Moreover rise in oil price. Increasing pay packets of salaried Indians in India and abroad are major reasons along with the assured 100 days rural employment to an adult BPL seems to be major factors of Indian inflation. So far the control is concerned only determined Prime minister can control inflation.

Answer 4

Excess of money supply asymmetric to production causes inflation.Inflation depends on demand-supply.Excess of liquidity,lack of supply are the root cause of inflation.Liquidity is increased if banking sectors injects excessive money in market by way of loans

Increasing CRR(Cash reserve ratio),Repo rate, interest will be hiked by banks resultantly  people will borrow less because of higher interest rate.On the other hand interest on deposit will encourage people to deposit money in banks and liquidity is reduced .

The other side is enhancing of supply of goods in market which will reduce market price and inflation as well.

If production is increased & hoarding is controlled inflation will come down.

Oil price in the international market is shooting up and consequently cost of consumption is increased and  price of all services & commodities resulantantly goes up.This is an international feature and can't be controlled easily but alternative sourses, if exploited, will lessen import and inflation as well.

Answer 5

The soaring oil and food prices is largely responsible for it.

Answer 6

since we go behind money forgetting that money comes &goes but morality coms&grows money increased in hands along wth desires leading to inflation

Answer 7

if its not growing then it cant be inflation..........:-)