Rising Cost of Living in India A comprehensive analysis of how inflation affects different income groups across Indian households from 2015-2024 Name: Pratyush Tarania Regd No: 2302060032 Branch: Electrical And Electronics Engineering
OBJECTIVE : The rising cost of living in India is a growing concern for millions of citizens. Impacts households across urban and rural areas. Driven by economic growth, urbanization, and global integration. Key Drivers Inflation: Steady rise in prices of essential goods and services. Population Growth: Increased demand for resources. Supply Chain Disruptions: Affects availability and cost of goods. Rising Demand: For housing, healthcare, education, and transportation.
LITERATURE REVIEW 1 2015-2016: High Inflation Period Poor households faced 0.6 percentage points higher inflation than rich households during high average headline inflation years 2 2017-2019: Low Inflation Period Rich households experienced higher inflation (up to 1.8 percentage points more) during low average inflation years 3 2020: COVID-19 Impact Supply chain disruptions disproportionately affected poor households with much higher inflation rates 4 2024: Current Scenario Poorest households face 6.4% inflation vs. 4.7% for richest households - a significant 1.7 percentage point gap
CONCLUSION & FINDINGS: 1 Enhanced Vigilance Increased monitoring by RBI and government on inflation patterns, with real-time data analysis and rapid response mechanisms 2 Food Inflation Control Proactive steps including new stock arrivals, supply chain optimization, and strategic reserve management to relieve price pressures 3 External Sector Monitoring Closer oversight of global trade dynamics to support export competitiveness amid slowing international demand 4 Target Maintenance Sustain RBI's 4% inflation target within the +/-2% band through coordinated monetary and fiscal measures
Survey Insights: Public Perception and Policy Impact Strongly Agree Agree Neutral Disagree Strongly Disagree Survey results indicate that 77% of participants agree or strongly agree that inflation significantly impacts investment climate and income inequality, while opinions vary on controlling inflation through public awareness and education initiatives.
REFERENCES: Oberai, Jahaan & Sharma, Deepak. (2021). IMPACT OF INFLATION ON THE COST OF LIVING IN INDIA. International Journal of Advanced Research. 9. 63-68. 10.21474/IJAR01/13375. Bansal, Rohan & Bansal, Prachi. (2025). Measuring Inflation Inequality in India. Mr. Vivek Gupta, Satyam Kumar Jha, Prathek Jain, Rakshith Golecha , S Nikhil, Shashank. A Study on the Cause and Consequences of Inflation and Price Rise in India.