Damned Lies and Statistics, remarked Mark Twain. I am reminded of that when I get to see the Inflation figures released by the Govt of India.
The Govt says that it is taking all efforts to prevent India from slipping into Deflation. Steps taken by the Govt apart, let us first analyze, How real is the threat of India slipping into deflation in the first place? If Roger Federer were to lose to the 500th ranked player in a Grand Slam tournament, then yeah India too would slip into deflation.
There are strong reasons for me saying this, New found optimism coupled with Reduction in Production of Crude has meant that Crude Oil is on the rise again as a consequence of which Fuel prices back home have been hiked. Fears about the Monsoon has meant that prices of Groceries and Vegetables which were already high have risen further and I would say it is almost getting out of ordinary people like me.
To put it across more clearly, a middle class family which was managing its show with 5,ooo INR would now require around 6,500 to 7,000 INR to sustain the same standard of living and here we have the Government speaking about Deflation and steps to propel the Economy.
Now you call that deflation???
Seems like the Govt has got some special parameters on which it measures Inflation. It would be great if they can furnish those parameters so that the common people like me can actually understand what does the Govt mean when they use the terms "Inflation" and "Deflation".
How do you feel when you are made to wait at the Traffic Signal? How do you feel when you find that the train you board is delayed by some hours? In short, How does it feel to wait and wait knowing that you really cannot do anything to make the situation any better? Terrible isn't it?
This is what the Indian Farmer does every year,expecting for the Monsoon, as his survival depends on it and "only" on it. The wait is still on this year and I can only hope that the rainfall proves to be "really" adequate. (Politicians have already begun their dirty job of issuing statements. Huh will they ever change? )
Now no Government or for that matter No Human can do anything to Influence the Monsoon. But for sure the Government can do lots to reduce the dependency of the Farmer on Monsoons.
India uses thrice as much water as the United States of America to produce a tonne of wheat. Drip irrigation is still in its Infancy and Awareness is lacking regarding Usage of Fertilizers and reagrding the Avenues available to sell their produce and the Government is least bothered about educating the farmers.
Nor is the Government, showing any real interest in building the requisite Infrastructure, by which I mean enough water storage facilities to make sure that the excess rain water (when India has good monsoons) are stored and not let out into the Ocean,Ensuring Rural Connectivity and Steady Supply of Electricity.
At this juncture,I would request people to remember History. "Revolutions" have always had their roots in Inequality and this Inequality which is widening might also lead to another upheaval, unless addressed immeadietly ( although it might sound as an exaggeration now).
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