Steps Adopted by the GOI to Tackle Inflation in India
- Under the Essential Commodities Act, 1955 & the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980 the state governments of India have been issued with advisories to take strict actions against the black marketers.
- The GOI launched a scheme called the Price Stabilization Fund in 2014-15 to control and regulate the volatility in agricultural products like pulses, and vegetables.
- To control the retail prices of pulses in India the GOI moved up the buffer stock from 1.5 MT to 20 MT.
- The GOI is constantly trying to provide the best MSP for the farmers so that the agricultural production increases and the government can ensure the availability of food grains.
Types of Inflation
Inflation can be simply defined as a decline in the value of a currency. Inflation directly affects the prices of essential goods and services. Also, it helps in calculating the increase in the price of certain goods and services in the past years. Inflation can be experienced when it requires more money to buy the same amount of goods. For example, if a pack of biscuits weighing 50 grams costs Rs. 5/Nos. in the year 2021 and the same pack of biscuits costs Rs. 8 in the year 2022 then it can be said that there is inflation. When a unit of currency can buy less than usual then it can be said that the nation is going through inflation. Inflation is measured in percentages, and the current rate of annual inflation in April of 2022 in India is 7.79%. Deflation is a state in which the prices of goods and services begin to fall with an increase in the value of the currency.
Read, What is Inflation
Table of Content
- Inflation and its Impact
- Types of Inflation
- How is Inflation Measured?
- Advantages and Disadvantages of Inflation
- Steps Adopted by the GOI to Tackle Inflation in India