Growth and Inflation in the Indian Economy

Introduction: In India Inflation is a persistent rise in the price level in an economy. The price level refers to the average price of goods and services in the economy. Inflation arises when the demand for goods and services in an economy exceeds the supply of same.  Inflation is a determinant in functioning of any economy. India is a country with a mixed economy model that comprises both capitalism and socialism; hence the challenges faced are vital for its growth model. The recent rise in inflation has been found to consist of several political and economic crises under the prime ministry of Dr Manmohan Singh. == contesting on the challenges faced; several economists have questioned the method of measuring inflation to be faulty. The present day process being used in India has been The Wholesale Price Index while several other developed countries adopt the Consumer price index to calculate inflation.

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