Dear fellow indians, India is having the more purchasing power as compare to other developed countries, but the prices of the goods like electronic items, cars etc are more in India as compare to another developed countries. Please answer to my question. Why ?
prices are high but saving is also high prices are high not doubt but savings have also been increasing at a high pace.The GDP is also on the rise. I am not an economist like Sri amartya sen but think that Indian economy has nothing to fear about. Whether it is recessions or it is job crash because we depend on agriculture and India is agriculture oriented country.
Why prices are more? The prices are more because the mostly the products that are available in India market are imported from different other nations. Hence, the import cost and taxes increase the rates of the products. Secondly the economic conditions of the country are still unstable so to balance this the government always comes up with a price rise strategy, as there are no good economic models that can help a country work smoothly at the time of crisis.
well it is the very obvious thing.. the electronic goods that you are talking about are not of indian brands. and so the prices include the importing charges and taxes levied on it. the company obviously would make more profit from some foreign country and hence the prices are more. you can compare indian products with international brands, and find indian products are cheaper.
i think it is because the domestic market is not satisfied by the domestic production. in this we should make production more efficient and enhanced. india is a large nation with huge population and loads of resources and land. it should make use of it wisely and produce much more than required, then only we can have commodities at cheaper price
