We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

Inflation – Impact on Indian Economy & Agriculture

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Inflation – Impact on Indian Economy &
Agriculture
Savneet Kaur
Abstract— Inflation is the rise in the prices of goods and services and affects all the major sectors in an economy. Inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.

In a country like Indian where a majority of population is working in agriculture sector, the effect of inflation increases manifold. This paper aims to put light on the impact of inflation on Indian agriculture and then give some suggestions for the improvement of the economy.

Don't use plagiarized sources. Get Your Custom Essay on
Inflation – Impact on Indian Economy & Agriculture
Just from $13,9/Page
Get custom paper

Index Terms— Food inflation, Inflation, Indian economy, Indian agriculture, monetary policy, macro & micro economics, RBI policy. —————————— 

——————————
An Introduction:
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the  general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects  erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of  account in the economy.

The Indian method for calculating inflation, the Wholesale
Price Index, is different from the rest of world. Each week, the wholesale price of a set of 435 goods is calculated by the Indian government. Since these are wholesale prices, the  actual prices paid by consumers are far higher.
In times of rising inflation, this also means that the cost of living increases are much higher for the populace. Due to  increasing prices, people have to spend more to maintain the standard of living. So, inflation is eating up the savings of an average man.
With most of India’s vast population living close to or  below the poverty line, inflation acts as a ‘Poor Man’s Tax’. This effect is amplified when food prices rise, since food represents more than half of the expenditure of this group.
Recent History and Present Status:
India’s 2009-10 Economic Survey Report suggested a high double-digit increase in food inflation, with signs of inflation spreading to various other sectors as well. The Deputy Governor of the Reserve Bank of India, however, expressed his optimism in March 2010 about an imminent easing of Indian wholesale price index-based inflation, on  the back of falling oil and food prices.
On March 19, 2010, the Reserve Bank of India raised its benchmark reverse repurchase rate to 3.5% percent, after this rate touched record lows of 3.25%. The repurchase rate was raised to 5% from 4.75% as well, in an attempt to curb
Indian inflation.
For 2009, Indian inflation stood at 11.49%. This rate reflects the general increase in prices, taking into account the purchasing power of the common man. According to the
Economic Survey Report for 2009-10, economic growth decelerated to 6.7% in 2008-09, from 9% in 2007-08. The economy is expected to grow by 8.7% in 2010-11, with a return to a growth rate of 9% in 2011-12.
In its Annual Monetary Policy Statement, RBI had said “the firming up of global commodity prices poses upside risks to inflation”. The central bank’s industrial outlook survey shows companies are increasingly regaining their pricing power in many sectors, and as the recovery gains momentum, the demand pressures are expected to accentuate.
Changes in Metal/Mineral Prices
Steel prices rose by over 9 per cent in the past year. Barring cement, prices of most industrial commodities have gone up sharply. While in some cases, such as nickel, prices have more than doubled; crude oil has surged about 75 per cent over the past year on rising demand from emerging economies such as China and India. Bullion is also on a high, with gold getting more expensive by the day. This fact hasn’t escaped the attention of the Reserve Bank of India.
IJSERInternational Journal of Scientific & Engineering Research, Volume 4, Issue 7, July-2013 14

TABLE OF CONTENT

1. QUESTIONS…………………………………………………………………………………… 2. WHAT IS INFLATION………………………………………………………………………… 3. INFLATION IN INDIA………………………………………………………………………… 4. CAUSES OF INFLATION……………………………………………………………………… 4.1. Demand Pull………………………………………………………………………….. 4.2. Cost Push……………………………………………………………………………… 4.3 Artificial Creation

4.4. Deficit of Government
5. EFFECT OF INFLATION
5.1 Negative effects
5.2 Positive effects
6. TOOLS TO MEASURE INFLATION…………………………………………………………. 6.1 National Income Deflator
6.2. Whole sale Price Index (WPI)………………………………………………………… 6.3. Consumer Price Index (CPI)…………………………………………………………..

7. FOOD PRICE INFLATION……………………………………………………………………. 7.1. what is food price inflation
8. GLOBAL SCENARIO
9. INDIAN PERSPECTIVE…………………………………………. 10. CAUSES OF INFLATION
11. MEASURES TO CONTROL INFLATION
12. CONCLUSION
13. ANSWERS TO THE QUESTIONS
14. BIBLIOGRAPHY

QUESTIONS
1) WH
2) D

INFLATION
Inflation is an economic condition where general level of prices for goods and services is rising and subsequently purchasing power is falling. As inflation rises every rupee will buy a smaller percentage of a good.

CAUSES OF INFLATION

Cost push theory: Inflation occurs when the cost of producing rises and the increase is passing on to consumer. The cost of production can rise because of a) Rising labour cost or when the production firm is a monopoly or oligopoly and raises prices, cost of imported raw material rises due to exchange rate changes b) External factor: natural calamities or an increase in the economic power of a certain country c) Increase in indirect taxes can also lead to increased production costs.

Demand pull theory: it attributes a rise in prices to increase to an increase in demand in excess of the supplies available. There can be an increase in demand due to: a) Increase in quantity of money in…

Cite this Inflation – Impact on Indian Economy & Agriculture

Inflation – Impact on Indian Economy & Agriculture. (2016, May 18). Retrieved from https://graduateway.com/inflation-impact-on-indian-economy-agriculture/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page