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Inflation in India

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Inflation in India
Tables of Contents
1.0 Introduction 2 1.1 Inflation 2 1.1.1 What Inflation is? 2 1.2 two types of inflation: 2 1.2.1Creeping inflation 2 1.2.2.hyperinflation 2 1.3 Causes of inflation 2 1.4 Measure of inflation. 3
2.0 India 's economy , history of inflation and inflation rate. 3 2.1 Causes of inflation in India 4 2.1.1 Shortage of food 4 2.1.2 Population rise. 4 2.1.3Weak Indian rupee. 4 2.2 Impact of inflation in India 5 2.2.1 Low standard of living 5 2.2.2 high transportation cost 5 2.2.3 High interest Rate 5 2.2.4 Unemployment. 6 2.3.5 Import and export 6
3.0 Steps taken by the government to control inflation. 7 3.1 Monetary policy. 7 3.2fiscal policy. 7
4.0 Recommendations. 8 4.1 Open market operations 8 4.2 Population control and Urbanization and Industrialization. 8 4.3 Reduce the interest rate 9
5.0 Conclusion. 10 appendix 11
India has seen both elevated and low inflation, and deception the graph shows inflation since 1953 to 2011. 12
References 16

1.0 Introduction
This report is about inflation in India. I have discussed how inflation occurs, how it is measured , causes of inflation in India, what government has done to control inflation and my recommendations have also discussed little about India 's economy.
1.1 Inflation
1.1.1 What Inflation is?
Inflation is commonly understood as a situation of substantial and rapid general increase in the level of prices and consequently, deterioration in the value of money over a period of time. by this we can understand that when the general price level rises each units of currency buys very few goods and services. (Shaikh Saleem )
1.2 two types of inflation:
1.2.1 Creeping inflation
In this situation the rise in the price level over a period of time is at a much slower rate. This type of inflation it doesn 't harm the economy of the country , the government can easily overcome the few damages fast.
1.2.2. Hyperinflation
In this situation


References: Stanford, J. (2008) UNDERSTANDING AND MEASURING INFLATION. [e-book] canada: Canadian Centre for Policy Alternatives,. p.1-2 http://www.economicsforeveryone.ca/files/uploads/How_To_Inflation.pdf [Accessed: 11 september 2012]. Allbankingsolutions.com (2011) Define CRR, SLR, Bank Rate, Cash Reserve Ratio, Marginal Standing Facility, MSF. [online] Available at: http://www.allbankingsolutions.com/repo.htm [Accessed: 24 Sep 2012]. Currentessays.blogspot.com (2008) Current Essays: Inflation in India. [online] Available at: http://currentessays.blogspot.com/2008/10/inflation-in-india.html [Accessed: 24 Sep 2012]. Indiainfoline.com (2012) How to control Inflation?. [online] Available at: http://www.indiainfoline.com/Markets/News/How-to-control-Inflation/4907123683 [Accessed: 24 Sep 2012]. Kumar, P. (2009) Inflation. [online] Available at: http://www.slideshare.net/birubiru/inflation-7052443 [Accessed: 24 Sep 2012]. SALEEM SHAIKH. (2008). Business Environment. Pearson India. http://www.myilibrary.com?id=265244. STANLAKE, G. F., GRANT, S., & STANLAKE, G. F. (2000). Stanlake 's introductory economics. Harlow, Longman. Thirdworldplanet.com (2007) The Indian Economy - Third World Economies. [online] Available at: http://www.thirdworldplanet.com/indian-economy.php [Accessed: 24 Sep 2012]. Authorstream.com (1899) Inflation in India Ppt Presentation. [online] Available at: http://www.authorstream.com/Presentation/lokesh.1996-1003845-inflation-india/ [Accessed: 10 Sep 2012]. Blogs.wsj.com (2012) Did the RBI’s Rate Cut Make a Difference? - India Real Time - WSJ. [online] Available at: http://blogs.wsj.com/indiarealtime/2012/05/16/did-the-rbis-rate-cut-make-a-difference/ [Accessed: 20 Sep 2012]. Commodityonline.com (2010) Food shortage causes high inflation: Pranab | www.commodityonline.com | 3. [online] Available at: http://www.commodityonline.com/news/food-shortage-causes-high-inflation-pranab-26251-3-26252.html [Accessed: 20 Sep 2012]. Cyberjournalist.org.in (1982) All India Consumer Price Index (General) for Industrial Workers. [online] Available at: http://cyberjournalist.org.in/manisana/aicpinew.html [Accessed: 17 Sep 2012]. Mbaknol.com (1961) Causes and effects of inflation | MBA Knowledge Base. [online] Available at: http://www.mbaknol.com/managerial-economics/causes-and-effects-of-inflation/ [Accessed: 3 Sep 2012]. Routray, N. (2010) Inflation and its trends in indian economy. [online] Available at: http://www.slideshare.net/NiharRoutray/inflation-and-its-trends-in-indian-economy [Accessed: 12 Sep 2012]. Theglobalecon.com (2012) The Global Econ » KEY CAUSES OF INFLATION IN INDIA. [online] Available at: http://theglobalecon.com/key-causes-of-inflation-in-india/ [Accessed: 8 Sep 2012]. Unknown. (2012) India 's inflation seen at 2012 high. The Indian express journalism Courage, p.1-2.
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