Translate

Restricting Demand of Products to contain Inflation

Restricting Demand of Products to contain Inflation

By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com  |  November 13, 2018 9:30 a.m.
The control over inflation by restricting demand of goods and services, in itself is an intervention of central bank which affects adversely in long run. Let’s take an example, suppose the government imposes more taxes in form of Goods and Services Tax or other indirect taxes; definitely it will reduce the inflation and also fill the basket of the government with a lot of revenue but at the same time, due to higher cost being afforded by the consumers, the overall demand of the goods and services will be reduced which will give indication to the suppliers to produce less and employment opportunities will reduce significantly.

What can be done for long-term appreciation in value of a currency?

The real secret of appreciating the currency is to provide a friendly environment to the farmers, manufacturers, producers, and service providers by reducing the taxes, appreciating their efforts both in monetary and non-monetary incentives, attracting foreigners particularly the innovators to come and live in country, and providing sufficient autonomy to grow the businesses. The reservation in employment and education, the subsidies to poor people, and benefits to a particular category of people also affect the economy in negative sense because in order to get such benefits or in order to stay with such benefits, the people become less productive which ultimately harm the progress of nation. The high cost of living, high cost of setup business plays a great role in discouraging the talented people for staying in the country. A large number of Indians are being employed in rich countries and making them richer due to high cost of living and high cost of setting up businesses in India.

What does rising rate of Non Performing Assets indicate?

The Non Performing Assets of the banking sector are the result of non-availability of friendly business environment and the rise in NPAs during last one decade also indicates how India is going down and down in production, manufacturing and providing services at reasonable cost. Higher the cost of business, high the rate of NPAs will be. Instead of focusing upon making rules strict, it is more important to focus upon providing credit facilities at less rate of interest.

Why Indian Rupee is depreciated in last few years?

The value of dollar in terms of rupees in the year 2008 was only Rs. 39.42 while it is now almost near to Rs. 75 just in last one decade. Instead of too much Foreign Direct Investment (FDI), the India lost the value of currency because the Indians have become addicted to spend more money on products and services being provided by the foreign companies. The Multinational Companies (MNCs) are exploiting the resources of the country to a great extent and making India poorer. It is time to think about a new strategy to restrict the over-exploitation of resources by the MNCs and promoting the companies and businesses being run by Indians. 
*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

No comments:

Post a Comment

I will be happy to hear from you. Please give your comments...

Auto_1

Horizontal Responsive1

Popular Posts

LoP1

Special Offer!

Funny Baba

Free Seminars

Featured post

Grow with a New Mindset and EQ

Grow With a New Mindset and EQ Everyone in this world is unique in most aspects and behaves differently because everyone has their own set o...

Free Notes

Tips to Grow

Earn Money

Popular Posts

Free Download

Tax Saving

Fun in Life

Labels

Progress Leaves Important Questions India Economic Growth Energy Governance Government Business Commerce Current Affairs Demand Economic GST General Knowledge Indian Youth Information Technology Parents Procedure Solutions Advance Tax Adverse impact of Social Media Agriculture Banking Change Children Clerk Common Man Corruption Currencies Decision Development Employees Financial Management Free Trade Agreements Growth Indian Culture Indian Economy Indian Rupee Interest on Advance Tax Liberalization Liquidity Management Money Notes Opportunity PPPs Personality Pollution Reforms Safety Supreme Court Technology United States 80C 80EE Accounts Act Action Advantages Air Quality Index Anti-virus Anti-virus Protection Appreciate Appreciation Assets and Liabilities Astrology Author Autocratic Automation BIFR Basic Exemption Limit Behavioural Benefits Best Resort Bitcoins Budget Business Environment CAD CBI Court CHSL Capacity Capital Capital Expenditure Capital Gain Capital Market Capital Stru Capitalism Care Taker Cash Cash Flow Cashier Challenge Change Management China Chit Fund Clean Clearing House Commission Competitive Examination Compliments Computer Computer Virus Consolidated Statements Consumers Contractual Control Covid-19 Pandemic Credit Criminal Law Act Crisis Crops Crypto-currencies Current Account Deficit Current Events Custody Cutomers Cyber Crimes DBT Dairy Register Dairy Writing Data Theft Debit and Credit Debt-trap Deficit Delhi Demonitization Dera Sacha Sauda Detecting virus Dictatorship Diet Difficult Situations Digital Disadvantages Dollar Donald Trump Download and Install Dr. MSG Drawing and Disbursing Officer Duties of Diarist EQ Earning Money Easy Electricity Emotions Employment Empowerment Environment Environmental Crisis Equity Ethical Values Evaluation Event Examination Expense Accounts Exposure Farmers Faster Finance Financial Administration Financial Control Fiscal Deficit Fixing Responsibility Food Grains For example Foreign Institutional Investors Free Fuel Prices Further Scope Geography Getting rid of Corruption Global Market Globalization God Good and Simple Tax Goods and Services Tax Google Adsense Google Desktop Government Departments Gurmeet Ram Rahim Singh Hacking Harmony Health Problems High Cour Honesty How Google Adsense Works Humanity IL&FS Identification of Assets and Liabilities Immunity Imports and Exports Imprisonment Income Income Accounts Income and Expenditures Indian Institute of Management Indian Jal Shakti Indoor Plants Industrialization Inflation Internet Inventions Investments Irregularities Jobs Journal Judgement Labour Language Law Leadership Learning Life Life Style Linking Aadhaar Loans Loss to Government MBA Mahatma Gandhi Management Development Programmes Managerial Success Managing the work performance Marketing MeToo Mind Mindset MoU Mobile Governance Moral Morality Motivation NITI Ayog NPAs NPS NRF Narendra Modi National Pension System Net Assets Value New Industrial Policy Niti-Aayog Non Performing Assets Outsourcing PSUs Palmistry Paper Parking of Funds Penalties People Personal Ledger Account Petroleum Picasso Police Commissioners Political influence Practical Problems Precautions Prime Minister Prime Minister Narendra Modi Principles of Management Probing Problem Problems Procurement Products Protection Public Public Sector Entities Publication Quality education RTI Activists Rafale Reaction Rebuilding organizations Record Keeper Recovering from Sickness Recovery Religious Research Paper Retrieval Revival Rulers' actions SIPs SSC Search Engine Section 234 (B) Seeking Information Self-education Services Sexual Harassment Sim Card Simple Sirsa Smog Social Media Social Responsibilities Society Solar Solved Speed Up Spiritual Saints Spyware Stability Staying Calm Storage Store Keeper Struggle Success Suggestions Surplus Sushant Rajput TDS Take-Home Salary Talent Retention Tax Tax Planning Teacher Technical Factors Tender Tips Touch Trade War Types of Tenders Unemployment Values Verify Aadhaar Waiving Off Water Webpages What Why and How to Evaluate Work Environment Writing Off Youtube deferred payment of advance tax e-Shram Portal higher education insolvency managerial skills scam training training courses world

Happy Moments

Learn and Update

Popular Posts

Auto_1

Horizontal Responsive1