December 23, 2011 (Powerhomebiz.com) As per many reports, India’s food inflation slowed down to4.35 per cent which is the lowest in about four years. Inflation has been oneof the biggest problems faced by India in the recent years and has threatenedto impact the entire economy of the country. There are fears of an economicslowdown in the year 2012 and overall the inflation figures have been quiteworrying to say the least.
According to IndiaCompanySetup.com(www.indiacompanysetup.com)keeping inflation in check should be the Government’s main priority as itimpacts several aspects of India’s society and its economy. India has achievedremarkable growth in the past decade and while some increases in prices are naturalthanks to the rising purchasing power of ordinary Indians, the inflation ratehas been much higher than what would be deemed as acceptable. Although theIndian Government has indicated that most emerging markets have experienced outof the ordinary rise in inflation, it still needs to do more as inflation couldbecome the single biggest factor in bringing down the economy. Growthprojections were already lowered from 8 per cent to 6.9 per cent in the nextfiscal year and there are a number of bottlenecks that need to be cleared ifIndia wants to continue to grow at over 7 per cent.
As perIndiaCompanySetup.com, the food inflation figures coming down is a good signbut if immediate action is not taken, the numbers could rise again and createproblems for the Indian government. Already opposition parties have corneredthe government on inflation and have highlighted the less than satisfactoryperformance on bringing down inflation in India. However, more than from a pureeconomic point of view, inflation needs to be controlled from a human point ofview considering several million people in India are below the poverty line andalmost all aspects of daily living have become unaffordable for many of thesepeople.
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