High inflation unemployment rates challenges from "summary" of Indian Economy: Performance and Policies by Uma Kapila
High inflation and unemployment rates pose significant challenges to the Indian economy. When inflation is high, it erodes the purchasing power of consumers, leading to a decrease in real wages and a decline in living standards. This can have a detrimental impact on the overall demand in the economy, as consumers may cut back on spending in response to rising prices. At the same time, high inflation can also lead to uncertainties in the market, as businesses face difficulties in planning their production and investment decisions. On the other hand, high unemployment rates indicate a lack of job opportunities for the workforce, which can result in underutilization of human resources and a decrease in overall productivity. This not only affects the well-being of individuals and families but also hinders the growth potential of the economy. In addition, high unemployment rates can lead to social unrest and political instability, as marginalized groups may feel disenfranchised and excluded ...
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