people will not be in a position to buy things, So what will the factory owners produce for? The general economics of the renewed decline in the Indian economy is, One does not need to be an economist to understand that.
Inflation in India reached 7.41 percent in September. That is, at the highest level since April. Meanwhile, the Reserve Bank of India has increased interest rates in several installments to control inflation. But now it is clear that this remedy is not effective. It was not to be so. That’s because raising interest rates is only effective if inflation is rising due to the overheating of the economy. That is, when consumption is increasing due to increase in income and demand has dissipated the ‘animal spirit’ of productive investment. But this time inflation is not like that. This time inflation has increased due to supply side constraints. That is why the method of raising interest rates to prevent this is failing around the world. On the contrary, increasing interest rates have put further pressure on the income of a section of the society. On the other hand, due to the uncontrollable inflation, there has been a real fall of almost every section. In such a situation, the already reduced demand in the market is now disappearing. This data should have deepened the lines of concern on everyone’s forehead that in September, sales of common everyday necessities like oil and soap fell by almost 10 percent.
When this is the case, why should one be surprised at the figure that industrial production shrank by 0.8 percent in the same month. If people are not in a position to buy things, for whom will the factory owners produce? There is a general economics of the renewed decline in the Indian economy, which one does not need to be an economist to understand. Yet it is the country’s misfortune that the Indian media is busy looking for headlines to shine amidst the plight. For example, the gist of the latest IMF report was that India will no longer be able to achieve the previously projected rate of GDP this year. But the headlines became that India’s growth rate would be better than other countries. Now this headline was made due to the instructions from above, or whether the mind of the media persons themselves has started to understand the desire above, we do not know.
