Why is inflation high in India?

Inflation in India is primarily driven by the demand-supply gap in the economy. 

Factors such as rising global commodity prices, supply chain bottlenecks, and a weak rupee against the US dollar also contribute to higher inflation. 

In addition, India’s high population growth rate leads to higher demand for goods and services, which in turn drives up prices. 

Finally, the government’s fiscal deficit and borrowing to fund infrastructure projects also contribute to inflationary pressures.

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