NO PINCH IN CONSUMPTION WITH HIGHER INCOMES
Abstract
The Rupee is sliding with jumps and jerks, panicking the Policy makers, but, it looks still worth a lot more than it was some 40 years ago, when it was first pegged to the US dollar.
           Drastic rises in average income levels, and rising purchasing power parity, inspire the man on street to buy more per unit of money today.
           Dating back to 1971, the rupee was 7.58 against the dollar, the $500 would have cost Rs. 3580. Partly? Average monthly salary of senior executive was Rs. 4000 per month those days. Today, it is estimated as over 60 times higher or more. This is how drastically the income levels have changed.
           On looking at income estimates, average per capita income in the country at current prices and at constant prices (1999-2000 prices) seems to rise. For instance, the per capita income at current prices is accounted as increased from Rs. 2985 per month in 2007-08 to Rs. 3874.33 per month in 2009-10 (Quick Estimate) (say, it increased by 29.80 percent). In other words, the per capita income at current prices rose from Rs. 98.14 per day in 2007-08 to Rs. 127.38 per day in 2009-10.
           Again, it is observed that the per capita income at current prices has registered an annual average growth rate of around 12.8 percent during 2001-02 and 2010-11. The per capita income as measured by net national income comes out at an advance estimate of Rs. 54527 in 2010-11 which rises from Rs. 46492 in 2009-10 (that is, it increased from Rs. 127.4 per day in 2009-10 to Rs. 149.4 per day in 2010-11 (December, 2011).
           Again given figures of per day income if are compared with those of Planning Commission's per day per person spending 'norms', a dignified and gleaming picture of the development of economy appears with its dazzling dimensions.    An attempt is made in present analysis to assess the changes in the dimensions of the economy in terms of consumption behaviour in India in broad termsFull Text:
PDFReferences
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