Sunday, 23 September 2012

What do the cheaper goods in the market mean?

It’s okay to go for cheaper goods available in plenty in the market, but the question is whether they affect our country’s economy. If they do, what could be the alternative to the goods procurable only at a high cost. If black money is set aside, India continues to be a poor country where the common man just can’t afford higher price tags particularly when it comes to routine consumer needs, say like food items. Supply of different items from outside, mainly including China, is at a very large scale making them available in the local markets in plenty at considerably much cheaper a rate. The very element of competition such a supply generates is something in the interest of the buyers as it results into reduction of standard prices in the market . This bumper supply is also on account of an abnormal reduction in import duty as per the government’s policy. Import duty in India in early 1990s which was 300% stands steadily reduced to only 10% presently. Patriotically speaking, one should not go for imported/ foreign items as against what is available on a desi pattern, and such an approach emerges from what was known as swadeshi in tune with the call given by Mahatma Gandhi long back. Ideally, it sounds very good, but the question here is again centred on affordability and availability. As against khadi and handloom products, the supply otherwise available in the market is cheaper, and a consumer may not go for it on a mere slogan of desi/ swadeshi, as is the cult of thinking at the level of the present day generation. This is wrong to go for a chinese brand of a mobile phone just for the reason that it is much cheaper compared to other standard models available in the market, but after all a buyer can’t go beyond what his/ her pocket permits. The option left open to a consumer is either to go for a purchase of an item he/ she needs, or not to go for it at all. Here again, the solution revolves around the economic policy of the government by evolving policies that adjust import duty and increase the local level of production enabling the market to withstand the competition at the global level.

Post a Comment