Tuesday, 10 June 2014

Soaring prices in a developing economy:


The present government under the dynamic leadership of the Prime Minister Narendra Modi is all set to have a curb on soaring prices, an area of sharp criticism every where and a major component which did cast UPA their government. The very message as from the present governmental quarters that efforts are in the offing to secure some breather is heartening and received well at the level of the people in general. There are doubts, however, if the endeavours made in this direction may really elicit some tangible relief as these are two deeply inter related areas –soaring prices and developing economy. Any healthy development is all supposed to equip the people with jobs, business and multiple avenues for prosperity which factors in turn are likely to enhance the purchasing power of the consumers and this is bound to result into a steep rise in prices of essential commodities based on the well accepted theory of supply and demand. Any developing economy supplies more money to the people enabling them to resort to more buying and more the buying more  are the chances of the prices shooting up. If Modi Government is able to maintain the growth in the meantime keeping a check on price rise it settles at a miracle only.

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