There is remarkable congruence between the aam aadmi and the world's elite gazing at India when it comes to their most important concern about this country inflation and not corruption, is their number 1 priority.The nine per cent GDP growth envisaged for the financial year 2011-12 may remain a pipe dream unless the problem of rising prices is tackled, feel economists.
THE BURGEONING middle class of India has been one of the main driving forces behind the rapid growth of the country's economy in recent years.However the expansion of the Indian middle class is now under threat because of a steep rise in inflation, which could hold back the enlargement of the key social group both in the short and longer term.Its large middle class population - amounting to around 200m in about 50m households, most of them with a single income earner - have become big end-users of chemicals through their purchases of housing, household items, automobiles and personal care products.
THE BURGEONING middle class of India has been one of the main driving forces behind the rapid growth of the country's economy in recent years.However the expansion of the Indian middle class is now under threat because of a steep rise in inflation, which could hold back the enlargement of the key social group both in the short and longer term.Its large middle class population - amounting to around 200m in about 50m households, most of them with a single income earner - have become big end-users of chemicals through their purchases of housing, household items, automobiles and personal care products.
With the impetus coming mainly from higher oil prices and soaring prices for imported food, inflation is now at its highest for 13 years and double the target level set by the RBI, the central bank.
Double-digit inflation is unusual in the Indian economy, with the rate going above 10% only in the early 1990s and in 1994-95. Now, economists predict, it will remain in double figures for the rest of the year.
The sharp increase in prices, together with higher interest rates, is hitting lower income groups hardest but there will also be an immediate impact on the spending power of the middle class, which has provided the foundation for the boom in the consumer market.
India's stock market has fallen this year on fears that high inflation will scare off foreign investors.
Wages in India are also rising as workers demand pay that keeps up with the cost of living.
The prices of basic commodities like fuel, food, education and the interest rates on loans for durables are going up.
The average Indian is now paying more on their loans as the interest rates on home loans, As such, the middle class cannot afford those goods that they had previously been able to," . It will adversely affect lifestyle.
Improving productivity,slow the wage growth by increasing labour pool,Make sure and crub corruptions of all form,agriculture reforms are some steps to cut inflation .
