Indian economy is jeopardized off late and there is no clue
will it show any improvement or not. It’s just been the first few months of
this financial year and economy is already in a deep soup. It’s difficult to
come up with assumptions for future. There are various factors that have
brought about such difficulties that are listed below.
Inflation
This is considered as the biggest failure of the UPA
government that is the inability to maintain a balance in the economy. There
has been rise in food prices as the wholesale price index has been raised
higher then it was five years back. It has worse impact on the poor who spend
more than half of their income on the purchase of food items. This hike in food
price has immensely affected the poor and has eroded the incomes of the middle
class families as well, thus bridging further gap between the haves and the
have-nots. This gap may give rise to social tensions. Mostly the price of
vegetables, fruits and milk and dairy products have risen producing a cut on
the household savings and has reduced the demand for consumer durables and
industrial products.
