Economic crisis for India

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It is very disgusting that food inflation Fuelled by high food and oil prices, retail inflation soared to an eight-year high of seven point seventy nine per cent in April from six point ninety five  per cent in March, in what has been the fastest expansion since September 2014. If we see the percentage, we can’t  know the seriousness of the situation. But when even the richest also go to the market, they see the prices of grains and house hold items, they can feel the heat of inflation. There are many things that are disturbing Indian economy. But the most serious are the collapse of Share market and weakening of rupees against dollar. The investors are retreating from Indian stock market and running toward US markets as US Federal Reserve has increased interest rates. Also, in US, there is record inflation and that is also the reason for investors to backtrack from other Share markets. These reasons have acted as a villain for Indian economy which is already in dire need of some boost. Indian stock markets has collapsed by nearly one thousand points on Thursday at one time. Which means Indian investors have lost lakhs of crores of rupees in a single day. But the real problem is weakening of Rupee against dollar. Whenever there is economic uncertainties, the investors have rushed towards US markets. This has made dollar robust and rupee weaker. This means Indian importers have to pay more rupees for imports. As we know, India is dependent upon eighty percent imports and it will have a very severe effect on economy. On the other hand, exports will be cheaper but in case of India, imports are higher than exports and it is useless. But, if the government gives some more concessions to exporters, then it may prove some relief to our disastrous economic condition. It is doubtful that do our rulers even know or think about our hardest economic situation? Everybody concerned with ruling party only busy in rutting the same old story of how our economy is returning to normalcy after Corona pandemic and how Modi has been influential in bringing it back to tracks. But, whenever people go to the market, they can see different picture. The inflation has reached to neck break level and their pockets have been emptied due to price hike. The biggest factor that has hampered our economy is petrol prices. The fuels have caused biggest economic break down which has serious effects on our demand and supply situation. Any economy runs on demand and due to immense price hike in Petrol and Diesel, the people have no money to purchase other things. It has caused stoppage of demand and so the economy. Not only food inflation, but petrol price hike has been one of the reasons for our economic disaster. No ruling party member is ready to talk about these disasters that our consumers are facing in markets. Whenever Rupee becomes week, it affects our purchase power because we need to pay more rupees for purchasing the same thing we had purchased in the past at half of the price. This is real problem of economy. The government should seriously think about the problem and declare some relief to commoners by using measures so that the prices will come down. The international consumer has no control over the developments taking place in world. Russia Ukraine war has added fuel to the already tense situation. We have no control over Putin. He may stop the war when he thinks appropriate. So we have to wait for the moment. But till then we can’t wait to bear the consequences of the war. Oil inflation is another major factor for our economic woes. Because, our eighty percent oil demand is dependent upon import. To add our woes, Reserve Bank of India has said that it will take ten years to return to pre Corona situation. This has been a severe setback to economy. All in all, we are going through most hard phase of economic disaster that has never come in the past.