has been selectively highlighted. English_Master March 23, 2015 No Comments. Since July 1, petrol has climbed.18 per litre in Mumbai, and diesel by.75 per litre in Kolkata, and.71 per litre in Chennai. These economies extremely need imported oil, and the energy is utilised ineffectively. India spent 15 billion, equal to 3 percent of its GDP, on oil imports in 2003. The public distribution system is totally unorganized and the Kendriya Bhandars are not functioning properly at all. The cost of production has risen because of the increase in fuel prices, and the producers of many products charge consumers a greater price. The higher cost of manufacturing will result in inflation. Even while people struggle to make breakthroughs in solar, wind, geothermal and related energy sources, they should reinvent their traditional sources to utilise these sources more efficiently.
It has shaken the faith of the people in the government. . Natural gas might substitute for petroleum in some cases, rising pricing for petroleum lead to rising prices for natural gas, therefore, for fertilizer. Less productive capacity left more idle due to the recession than the Bank of England predicted which means that inflationary pressures might occur again quickly. Big industrial concerns have become like economic empires and dictate their own terms to the common people. In this case, the gap between rich and poor is increasing. The purchasing power of the rupee is continuously falling.