Price rise in India- What is the actual reason?

Truth is bitter.Price rise is already 400% in India. Congress lead UPA-II have created a history, has become example of  the following.

• Rampant corruption and indiscipline in various ministries.
• Irresponsible capitalist policies to favor Western Banks and multinational companies.
• Completely ignoring Judicial expansion and reforms for fast and inexpensive justice.
• Worsening law and order.
• Increasing poverty ,unemployment and exorbitant price rise seen in only handful of badly managed and corrupt countries like India.
• Divide and rule in name of various reservations to hide failure and to create vote bank.

First let us see why prices have gone up and are going up?


1. The argument given was that liberalization will increase production and productivity. It will reduce operations controls on businesses and private sector involvement will bring productivity, better management of assets and technology.


Nothing of this sort happened. In fact, private sector has shown it is as much or even more corrupt and unproductive in indie as public sector. Barring a few well manged well meaning companies, majority are greedy, manipulators , tax avoiders and having poor quality and customer service.Profiteering has been key word.


Theoretically when capacity geers up, prices should come down.When competition goes up prices should go down.Why this has not happened?People should ask themselves and see who is to be blamed.


2. Salaries are a big cost component. The 6th Pay commission and private sector salaries have gone up by 100% to 1000% from government to private MNC sector.This is just too much and unwarranted in country like India.It has been main cause of unequal distribution of wealth in nation and cause of price rise in country.The manner in which governments have increased their running expenses reaching almost 30% of public budgets is condemnable. We should remember that governance is an expense on society and not productive. It should be minimum.But the way politicians and bureaucracy are flying around, using imported car models and giving them,selves perks and parties is a disgusting act.It must stop.There is no relation of salaries and perks and various ratios and indices in India to per capital GDP.


3. In an attempt to ape the American lifestyle and glamour, Indians have gone mad after conspicuous consumption and over drive in spending money on reckless expansion of hi-fi infrastructure like malls and buildings. The property price escalation by 400-500% in 8 years has made businesses more expensive and risky. Obviously, this cost has to be passed on to consumers.Do we need all this? and too fast? Why we need hi-fi malls all in 5 years period itself? Cant we have moderate growth rate? specially in luxury and show off?


If we have to ape American lifestyle we have to spend more, consume more and generate more garbage. It is just not sustainable for India like country and there is no income with common man. A moderate growth rate that too in priority sector with target of 5-6 % growth is best suited to India for next 20 years. The madness let loose by Indian government should be rolled back. Reduce the superficial consumption and luxury and reduce expenses.


4.Though computerization as claimed to improve governance and information sharing, not much has happened. Our judiciary is one of most rotten and corrupt system in world and non-delivering and shamelessly it continues.The court premises anywhere are tons of under table transactions every day.
Corruption and rates have reached new peaks.It was supposed to happen with rising wages.A policeman with salaries and perks of 3 times now wont take same amount of tin bribe as 10 years before.


A major portion of Indian GDP ,almost 40% is sucked off from system in form of salaries wages,perks and corruption by Bureaucrats and politician in nexus with greedy and unethical contractors including big muscle companies.This money goes in luxury spending ,real estate and goes abroad in Swiss bank accounts. India's GDP itself is under reported as there is large scale tax evasion in real estate and general commodities. Even now.


5. Break down of regulations: In the name of liberalization and to help business lobbies and MNCs, government has shed regulations ( I am not talking of controls) thus leaving firld open for one and all to ,manipulate and over charge and loot consumers.The top corporate results mean money is sucked from consumers or common man.We should not feel good on such corporate results. Why any business should have so high income? Either there is no competition or no regulation in country. Both are bad. How drug prices have gone up by as much as 500% in some cases since Manmohan Singh has taken over? 


6. Financial markets and real state has been left open to MBCs and Foreign funds and HNIs from abroad including NRIs thus raising property prices. Same has happened in China but they have recently come down quickly to curb real estate bubble. Congress government is sleeping and in fact, politicians and landlords are biggest beneficiaries of land scam running in country in last 8 years.


The reasons are more and one can go on listing. 


But main point is Indian government and their so called experts should reduce it down honestly and ponder over their bad acts in last 8 years, cool off the hysteria in economy and regulate the growth. Transparency, regulations and a fast and effective judiciary should be put in place.Consumption should be reduced. Reckless taxation by governments should be reduced back. Taxation and corruption are tow main causes of Price rise besides over consumption and hysteria created in name of Globalization. We have ended up globalizing expenses and not incomes,WE cant do it so fats without R&D base, ill trained manpower and shortage of resources and land both.To add to this is our huge population.


If India starts consuming as much as an American ,India will simply become mountain of garbage. Let us realize the truth and act. In arrogance and unaccountability, Manmohan Singh team continue to give doses of price rise despite price rise already 400% since he took over first, i.e. in 8 years.

In the new doses, UPA government has doubled natural gas prices including CNG and closed the 3G bids at astronomical prices of 67000 crores ( as against 1032 crores suggested by TRAI)which will further boost price rise in the economy.


On the other hand various ministers and Planning commission chairman repeatedly give assurance of inflation reduction giving new dates every time, without any evidence and support. This country is being run by insincere,arrogant and western model aping people and now time has come for them to go.


People should not helplessly watch and keep praising these experts created by media, despite seeing huge price escalation.

At last, a good government to overcome these problems intelligently is utmost necessary to wipe out the hurdles faced by common man.. Hoping this dream comes true in future