Invest In India

Inflation in India dropped to negative market recently. For the first time in last 33 years the inflation rate turned to negative in India. Despite the negative inflation in India people have been feeling the pinch of the food prices.

For common men the inflation is state where there will be rise in the prices of goods and services and the value of money decreases. There is increase in the price of commodities in India by around twenty per cent; it is evident from the wholesale price index (WHI). Inflation is sensational issue in India and has huge impact on the political economy of India.

In the era of NDA the high price of onion made the government to face sever criticism of the people. Now the situation is much more similar to that, the prices went up and budget of household is affected. In 2008, the inflation rose to double digit market and Reserve Bank of India( RBI) took many monetary and fiscal measures to check the inflation rate in India amid the global economic crisis.

Both supply and demand side of inflation have been considered by the RBI to keep tab on the soaring inflation rate. The measures were successful, as a result the RBI got tab on the inflation. For last eight to ten months the drop in the inflation from double to mere zero is quite impressive. It was speculated the high inflation rate would affect the Indian economy.

The inflation has dropped to negative mark, but no relief to the people as the prices of goods and services are still high. The low production of some commodities in India for last eight months pushed the price up despite lower inflation rate. The RBI and government would chalk out measures to check the negative inflation which may lead to deflation state in the country.