India's inflation is increasing. To stop it or bring it down, the finance ministry and government of India is taking some what they themselves call "intelligent counter measures".
What they are doing is decreasing import duties, or making nil import duties so imports cost less, and banning or reducing some exports so more of goods are left within the country for indians to use.
While this might sound good measures for those who think "increase supply to meet demand and prices will reduce", it beats the idea that india has to be more richer to be self-sustaining and to absorb the costs of inflation and a growing economy... .because when you stop exports, you stop fund flow into india from other countries through trade.. and when you encourage imports, you increase the fund flow OUT of india to other countries in trade.
So, the government is technically just stopping India's growth or controlling the growth thinking that is what will bring down inflation.
There are a million ways to handle inflation financially, and I am surprised the "intelligence" of the ministers in the government can think of only two, one as discussed above, and two: to go beg all companies and industries to reduce their profit margins and bring down inflation.. which is actually the government's job and not the industry's or the company's.
This simply shows how much control the government has on the market and the economy of the country, that they have to beg the industry's or just stop the country's growth.. It is like either this extreme low level decisions, or that extreme high-level decisions to stop growth which is only done in case of emergencies.
By far it simply looks like we got a huge bunch lazy cats who don't want to spend time finding ways to solve problems, which is what governing is all about.
Next time, you pray to god, pray that god give some "intelligence" to all those ministers in the government to think more than talking more.. and do more than reacting to media more..
And Hence, in India, all big companies like Tata, Airtel, etc., and big industries like cement, banking, etc., are allowed to cost their products any high, looting money from people, and finally government will take a measure where all these companies push the money to people outside the country by importing lots and lots of goods. Your money and my money doesn't get rotated in trade within India, but as soon as we know, it gets out of the country.
What is happening is so gruesome a murder to the economy of the country, that this is all going to blow up big issues for the future, or, as usually it happens, the issues get pushed under the carpet and huge huge amounts of farmer loans are erased from the books further, as if India earns all the money in that sector.. agriculture.