Inflation is a Concern for India’s Growing Economy

Prime Minister Manmohan Singh, who is credited with facilitating India’s economic liberalization in 1991, is currently under pressure over concerns of price rise and increasing inflation. Thanks to the economic reforms of the 1990s a color television in India is much cheaper today than it was two decades ago. However, the cost of food items has soared, forcing the consumer to spend a large portion of his/her income on essential commodities. In a country where onion prices have had a definitive impact on electoral outcomes, the UPA government has announced measures for providing relief to consumers from the sudden rise in food prices. Most of the proposed measures are criticised as populist and ad hoc.

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