Inflation deflates the minds of the common man

The continued depreciation of the rupiah against the dollar triggered by rising inflation hits the common man very hard, as profits fall while expenses rise

Ray Shashwat Gupta

Rupee depreciation, inflation, interest rate hike by RBI acted as a triple whammy for businessmen and consumers. This is hurting the Goenkars and sadly there doesn’t seem to be any respite in sight for them. Dilip Naik, a businessman, said that due to inflation the cost of living is rising and this is pinching everyone. “Oil prices have gone up, which has led to higher raw material prices. We are struggling to survive. Our profit margin, which was already narrow, has narrowed further. We have to buy imported raw materials from our suppliers to make our products. But our customer is the government and they haven’t raised the tariffs,” Naik said. On the other hand, the suppliers continue to raise the prices. For this reason, the burden of rising costs does not cannot be passed on to the consumer and must be borne solely by them.” While many private entities pass the impact of rising costs on to the customer, we are unable to do so. As a result, our profitability is down. The ease of doing business also becomes difficult with the passage of time. Raw material costs are rising, gas prices are rising. If the rupee continues to fall like this and the prices of imported commodities continue to spin like it is happening now, then in the future it will be extremely difficult for us to survive in the market,” he said. This does not bode well. for the future not only of our company, but also of the overall economy of our state and the country as a whole. The government must step in and take corrective action. It must focus on stemming the decline of the economy, he added. Stay-at-home entrepreneur Rupa Naik said it has become extremely difficult for her to manage her business and home due to rising inflation. rising production costs, on the other hand rising inflation makes it difficult for me to manage my household expenses. I find it difficult to manage my house because the little income generated by the business is canceled out by inflation,” she said. She added that as a housewife, you have to do the monthly household budget at the beginning of each month. “But over time, we are forced to cut many of our expenses which are essential in nature but we are not able to afford it, such as in health and education. If this trend continues, it will be very difficult for me to find a balance between my business and my home, as the two are interdependent on each other,” she said. Clothing trader Pramod Sawant said the lower middle class was finding it extremely difficult to survive. especially in the post-COVID era. “We had hoped that the government would reduce the cost of consumer goods and essential items instead of the cost of fuel increasing the cost of fuel which leads to overall inflation which is hurting us. The cost of production has increased, but the consumer is not ready to buy products at an increased cost, which forces us to continue to incur losses as we are unable to pass on the impact of higher prices. price on the customer,” Sawant said. He said that the government must provide subsidies like deferred payment of interest, reduction in GST rates and many other similar measures. “The GST has broken the backs of small traders because it was hastily introduced. There are no rate regulations. Small entrepreneurs should receive relief packages. There is a loan exemption for big businessmen, but nothing for small traders and farmers,” he lamented. with dollars. This is related to inflation and various other issues. “Because of this, travel costs are increasing. Companies are finding it difficult to obtain funds from venture capitalists. Due to the stock market crash, raising capital has become extremely difficult. Due to rising EMI rates, many businesses are struggling to repay loans on various equipment and other aspects of the business. Those who are paid in dollars benefit, but at the same time the amount of work will decrease. The fact remains that rising costs will negatively impact many startups, which will either have to shut down or reduce their operations,” Nayak said. Director of the Indian Institute of Hotel Management, Goa, Samir Mehta, said inflation has hit multiple aspects of the hotel industry. “The economy still hasn’t come out of the grip of COVID. The attrition rate in the hospitality industry hasn’t changed. On top of that, we now have this situation of inflation and continued depreciation of the rupee. Every hotel’s bottom line is affected,” he said. From an education perspective, he said the student budget has gone haywire. “I run an institute of hotel training and I offer high quality hands-on exposure. But this requires substantial investment. Although we don’t compromise on quality, inflation is eating away at our income, which has already been impacted by the COVID pandemic. Unless some urgent measures are taken to cool prices, the situation could spin out of control and cause serious problems for all stakeholders in the economy,” he said.