Demand and supply

In a recently held meeting of NITI Aayog the National Institution for Transforming India, many economists showed their concern on weak demand of different services and consumer products and rightly so as it’s one of the main reasons the Indian economy is not picking up despite prices especially that of crude going down significantly. 

The fact is, our country is facing a downwards trend in demand in almost every sector including service and consumer products. Recently, one of the majors in consumer products Hindustan Unilever Limited, an Indian consumer goods company reduced prices on all its products in the range of 5-10% but it made not much of a difference on its sales. The reduced prices of petrol and diesel made no difference on increment of demand on Auto-Industry.

The downward trend

If we go by the January 2015 reports of Coldwell Banker the residential brokerage company the sales of property went down up to 30% in all metros including Mumbai, Delhi, Chennai, Kolkata and major cities like Bangalore, Hyderabad, Pune and Meerut etc. And the worst downward trend was registered in NCR region which was in the range of 30-45%. The reasons of this downwards trends are obviously the inflation rates that have rather worked like pay deduction. 

The coming Budget

Now, all the hopes of the market watchers are pinned on annual budget coming in the last week of this month that will reveal the new financial allocations on different sectors. The business houses are looking forward to the budget which will be practically the first of the BJP government. Let’s hope the new budget will have provisions helping people’s purchasing power by providing them better employment opportunities.

Conclusion

However, unless the emphasis is not kept on infrastructure related schemes like roads, railways, electricity projects , housing schemes etc at a brisk pace the expectations of people will go down further which will dampen people’s hopes which may harm the cause of the market further. The time has come, our government works for the cause of common people and does something that uplifts the hopes and living standard of masses.   

Article Posted By : suny  On February 13, 2015lView All Articles

suny

Article Source :

http://www.veethi.com/articles/recession-and-our-lifestyle--article-3426.htm

Keywords :
Demand , Supply , Budget , Finance , Downward , Trend , Petrol , Diesel , Consumer , Housing