• ABOUT US
  • CONTACT
  • TEAM
  • TERMS & CONDITIONS
  • GUEST POSTS
Wednesday, October 1, 2025
  • Login
Economy India
No Result
View All Result
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories
No Result
View All Result
Economy India
No Result
View All Result
Home Economy

India’s households wrestle with inflation as incomes dip

by Economy India
January 26, 2022
Reading Time: 3 mins read
FEATURED IMAGE ECONOMY INDIA 1 1
SHARESHARESHARESHARE

NEW DELHI: India’s households are grappling with rising living costs at a time when jobs and incomes have taken a hit amid the pandemic, but economists are not hopeful the government’s annual budget due next week will provide much relief.

Tea, edible oil, pulses, meat, cooking gas and services have gone up by 20%-40% since the COVID-19 pandemic began in early 2020 – hurting consumers while their incomes have fallen below levels seen before the health crisis.

ADVERTISEMENT

Long Term Projects

Retail prices have risen nearly 10% in the last two years compared with 8% in the previous five-and-half years after Prime Minister Narendra Modi came to power in 2014, an analysis of inflation data compiled by the Ministry of Statistics showed.

Modi, who remains popular among voters, plans to raise import tax on more items to support local manufacturing and increase spending on long-term projects.

Economists blame higher taxes, a widening fiscal deficit, Reserve Bank of India’s (RBI) easy monetary policy and supply constraints during the pandemic for a sharp rise in prices.

India’s government has offered little aid to households except free foodgrains for the poor.

Estimates

According to official estimates, average per capita income stands at 93,973 rupees ($1,258) for the current fiscal year ending March, lower than 94,566 rupees before the pandemic.

The unemployment rate was at 7.9% in December, with nearly 35 million people looking for work, a report by Mumbai-based think tank Centre for Monitoring Indian Economy (CMIE) said.

Meanwhile, the economy is projected to grow 9.2% in 2021/22 after a 7.3% contraction the previous year.

The increase in import tariffs on hundreds of goods in the last two years, climbing global crude oil and commodity prices have added to the burden on households.

Cooking gas prices rose 43.36% in two years ending December 2021, compared with a 30.68% rise in the previous five-and-half years, data showed.

Economic Recovery

However, domestic electricity and education costs rose at a slower pace reflecting a fall in economic activity and the closure of educational institutions during the pandemic.

Inflation is expected to push even higher as manufacturers pass on rising input costs while the central bank delays monetary tightening in efforts to support the economic recovery.

Retail inflation accelerated to a five-month high of 5.59% in December from a year earlier, while wholesale price-based inflation, a proxy for producer prices, marginally eased to 13.56%, but remained in double-digits for nine straight months.

“The COVID period has been a nightmare for Indian workers,” said K.R. Shyam Sundar, a labour economist at XLRI, Jamshedpur, and the author of “Impact of COVID-19, reforms and governance on labour rights”.

He added that households suffered job losses, fall in incomes and a sharp rise in prices during the pandemic.

“RBI and the government, which have excessively focused on supporting industry and boosting growth, should now take steps to rein in inflation and provide a relief to households.” (Reuters)

Tags: Budget 2022Covid-19Economic RecoveryEconomy IndiaEconomy NewsIndian EconomyPrime Minister Narendra Modi
Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

Related Posts

India Extends Export Duty and Tax Refund Scheme (RoDTEP) Until March 2026: A Comprehensive Analysis
Economy

India Extends Export Duty and Tax Refund Scheme (RoDTEP) Until March 2026: A Comprehensive Analysis

September 30, 2025
Trump Slaps 100% Tariff on Branded Drugs from October 1; India, Key Exporter, Faces Uncertainty
Economy

Trump Slaps 100% Tariff on Branded Drugs from October 1; India, Key Exporter, Faces Uncertainty

September 26, 2025
GST 2.0: FMCG Firms Expect Full Price Alignment Within Two Months
Economy

GST 2.0: FMCG Firms Expect Full Price Alignment Within Two Months

September 24, 2025
India Reaffirms WTO-Centric Fair Trade System at SCO Ministers’ Meet, Showcases Digital Public Infrastructure
Economy

India Reaffirms WTO-Centric Fair Trade System at SCO Ministers’ Meet, Showcases Digital Public Infrastructure

September 8, 2025
For now, India remains resolute. As Puri concluded: “Our duty is to the Indian consumer. We will continue to act responsibly, but always in India’s interest.”
Economy

India Hits Back at U.S. on Russian Oil: “Followed Global Rules, Stabilized Market”

September 7, 2025
Designed in India, Made in India, Trusted by World: PM Modi at Semicon India 2025
Economy

Designed in India, Made in India, Trusted by World: PM Modi at Semicon India 2025

September 2, 2025
Next Post
FEATURED IMAGE ECONOMY INDIA 1 1

देश के भविष्य पर मंडराता खतरा!

I AM PEACEKEEPER I AM PEACEKEEPER I AM PEACEKEEPER
ADVERTISEMENT

LATEST NEWS

Kotak Mahindra Bank Named Best Private Sector Bank at Financial Express Best Banks Awards 2023–24

India Extends Export Duty and Tax Refund Scheme (RoDTEP) Until March 2026: A Comprehensive Analysis

Govt. Announces Diwali Bonus for Central Employees: ₹6,908 Payout, Railway Staff to Receive 78 Days PLB

Indian Economy to Grow at 6.5% in FY 2025-26 Despite Strong Q1 Performance: ADB

Sahara Seeks Supreme Court Nod to Sell 88 Properties to Adani Group; Proceeds to Repay ₹24,030 Crore Investor Dues

Crude Oil Futures Jump ₹25 on Strong Overseas Demand, MCX Sees Active Trading

Tax Audit Report Submission Deadline Extended to October 31 for FY 2024-25; ITR Filing Deadline Remains Unchanged

Reliance Consumer Products Signs ₹40,000 Crore MoU with Government to Build Integrated Food Manufacturing Facilities Across India

  • ABOUT US
  • CONTACT
  • TEAM
  • TERMS & CONDITIONS
  • GUEST POSTS

Copyright © 2024 - Economy India | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories

Copyright © 2024 - Economy India | All Rights Reserved