Will it be fair to say that the Narendra Modi government is not doing enough to control price rise and inflation?
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Answer:
No government wants high inflation. The inflation is caused by UPA and Manmohan Singh's incompetence of last 10 years. It will require a competent government to undo it and will probably take an year or so.
Anonymous at Quora Visit the source
Other answers
You are decreasing agricultural area and increasing population and expecting that almost constant supply will fulfill the needs of rapidly growing demand. Inflation will never stop in India no matter whose government it is.
Anuj Mittal
Whoever asked this question doesn't seem to be a news reader. Our growth rate is less than cpi inflation rate. Our core sector growth has slowed down due to clearance problems in bureaucratic channels. Jawadekar and modi have kick started the clearance process. Once core sector improves and fii who are constantly flowing in will help improve the manufacturing sector which has already been promised support by increased focus on infrastructure development . Energy sector is set to revive after ib crackdown on foreign funded ngos who were stalling the energy projects. all these processes will converge towards decrease in inflation. now what's modi's magic ,.....Well he has cast himself as business friendly and that is the reason fii funds started incoming when election started, also his steps to decrease the subsidy and doles will provide long term relief as these charity schemes are palliative at best, don't expect magic but real hard work and nation first policy of modi he is the person who is set to create brand india
Deepesh Mishra
It is easy to put the blame on Manmohan Singh. Modi is lucky in one way. The crude oil prices have dropped drastically since 2014. India imports 70% of its crude oil requirements. Crude oil was selling at $100 a barrel during the reign of UPA. The price reached a max of $144 a barrel in June 2008. It dropped afterward but bounced back again to the near $100 levels. Now it is around $35 a barrel.The reason for the fall in prices is 2 fold:1 The Russians annexed Crimea. Russia's economy depends a lot on crude oil exports. The Americans instructed the Saudis to flood the market with oil so that the prices would fall, thus denting the Russians' income.2 The Americans themselves are increasingly employing the method of fracking to extract oil trapped in rocks in the US. It is estimated the fracked oil can significantly decrease America's reliance on Saudi oil. So the Saudis deliberately reduced the price of oil further so that the cost spent on fracking will become unprofitable.The country that has gained the most out of all this politics in India. The low inflation levels can be attributed to this to a great extent.Modi has not initiated any macro reforms to control inflation but the falling crude prices have helped him.
Prasanth Valsan K
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