In terms of economic growth, India is far ahead of the major countries of the world

- The Conundrum of Economics - Dhaval Mehta

- Increasing concern of governments of various countries with drastic measures to curb inflation

The world is currently suffering from a high rate of inflation. America is the richest nation in the world and many countries in the world have increased their rates to fight inflation, the current rate of America is 5.40 percent, which was close to zero two years ago, while the rate in the UK is 5.25 percent, while in India it is 6.5 percent. is percent. In Japan, the report was negative.

If the repo rate increases, the interest rates on all loans will also increase. The burdens on the business units who have taken loans of crores for their business will increase. If you have taken a loan from a bank to buy a house, the installment amount will also increase. America raises the rate from time to time because it has to control inflation. Ever-increasing inflation defeats the world's good governments in elections. Therefore, all the governments of the world take the necessary steps to control inflation, but because of this step, the whole country will not be trapped in recession, right? That fear haunts governments of all countries. America has to take tough measures and America uses the term soft lading for that. Soft lading means that the measures taken to control the rate of inflation should not result in economic recession.

In this context, there is a saying in Gujarati that a camel that pulls a goat does not pay. It should be remembered that America was caught in the terrible depression of 1929 not because of inflation, but because of the prices of commodities which sat at the bottom, the losses incurred by the companies and the huge unemployment caused due to it.

Economically, if the prices go too high, then there is misery, and if they go too low, there is also misery. Currently, the world is caught between Russia-Ukraine and Israel-Hamas conflicts, so the prices of crude oil are increasing and when it approaches 100 dollars per barrel, inflation increases in the countries of the world. The consumption of crude oil is so ubiquitous that its increase increases the cost of transportation of almost all commodities in the country. As raw materials become expensive, manufacturers have to increase the prices of their products. When the price hike becomes unbearable, the workers go on strike to protest it so that the anti-government parties find themselves yawning in their sleep. High rates of inflation have led to the collapse of good governments in the past. In Germany, after the First World War of 1914-1918, inflation increased so much that a packet of bread had to be filled with currency notes.

India's economy

India is ahead of the big rich countries of the world in terms of economic growth. 2022-2023 Fr. India's economic growth rate was 7.2 percent in the year, while it is estimated that it will be above 6 percent in 2023-2024, while USA's economic growth rate in 2022 was only 2.2 percent and UK's was 3.9 percent. In 2023, the UK growth rate is estimated to be 6 percent. But due to inflation It is also estimated that the growth rate of UK will be 1.8 percent in the year 2023. India's growth rate went as low as negative 11.03 due to the covid epidemic but India has achieved a very high economic growth rate since then. In spite of two continuous wars going on in the world (Ukraine-Russia and Hamas-Israel) in the financial year of 2023-2024, the fact that India can achieve an economic growth rate of more than 6 percent as seen above shows the resilience of the Indian economy.

India's economy is doing well. The average life expectancy of both men and women is rising to over 72 years, and women live longer than men.