This ppt talks about various income groups in india according to their income slabs.it also talks about the effects of inflation on various income groups in India.

1. Inflation
and it’s
#effects#

2. On different
income
groups…

3. The Flow Of Presentation
Introduction
various income groups
Factors affecting Inflation
India’s scenario
Effects on various income groups
Conclusion- Remedies

4. Introduction
What is Inflation?
World Bank Definition
Calculation methods
CONSUMER
PRICE
INDEX
WHOLESALE
PRICE
INDEX

5.
≈COST PRICE INDEX≈
UPDATED
COST
CPI
=
X
100
BASE
PRICE
COST
≈WHOLESALE PRICE INDEX≈
WPI
IN
SAME
MONTH
OF
PREVIOUS
YEAR
X
100
WPI
IN
MONTH
OF
CURRENT
YEAR-­‐WPI
IN
SAME
MONTH
OF
PREVIOUS
YEAR
5

6.
Various
Income
Groups
(According
To
Major
Occupa9ons)
(India)
6

7. investors

8. Fixed income groups

9. business community

10. Salary earners

11. government
workers

12. Wage earners

13. farmers

14. Factors Affecting Inflation
Demand pull
Cost push
Exchange rate

15. Demand Pull Inflation:
15

16. Cost Push Inflation:
16

17. Scenario of India
• BOOSTERS TO THE ECONOMY - 32000 Crs
• CUT IN EXCISE DUTY—2 %
• BUYING BACK OF GOVERNMENT SECURITIES
• INCREASE IN BORROWINGS FROM RBI
• PUMPING BAILOUTS
• RISE IN PRICES OF FOOD PRODUCTS
17

18. 18

19. 19

20. Effects On Various Income
Groups
Income tax slabs
-Below 2.5 lakhs
-2.5 to 5 lakhs
-5 to 10 lakhs
-10 lakhs and above
Urban Socio economic classification

21. Effects On Various Income
Groups!
!
Below 2.5 lakhs
Food sector~High
Manufacturing sector-
Consumer goods:~High
Capital goods:~Low
Non- Manufacturing Sector-
Infrastructure:~high
Education:~High
Energy: Petrol, Electricity, Oil~high

22. Effects On Various Income
Groups!
!
From 2.5 to 5 lacs
Food sector~High
Manufacturing sector-
Consumer goods:~High
Capital goods:~MODERATE
Non- Manufacturing Sector-
Infrastructure:~MODERATE
Education:~High
Energy: Petrol, Electricity, Oil~high

23. Effects On Various Income
Groups!
!
From 5 to 10 lacs
Food sector ~LOW
Manufacturing sector-
Consumer goods:~LOW
Capital goods:~HIGH
Non- Manufacturing Sector-
Infrastructure:~high
Education:~LOW
Energy: Petrol, Electricity, Oil~high

24. Effects On Various Income
Groups!
!
10 lacs and above!
Food sector~LOW
Manufacturing sector-
Consumer goods:~LOW
Capital goods:~moderate
Non- Manufacturing Sector-
Infrastructure:~moderate
Education:~LOW
Energy: Petrol, Electricity, Oil~LOW

25. Conclusion-Remidies
Fiscal Policies:
• Reduced Government Expenditure
• Increase in Taxes
Monetary Policies:
• Bank Rate
• Cash Reserve Ratio
• Open Market Operations
• Statutory Liquidity Ratio

26. webliography
• www.crisil.com
• hDp://www.allbankingsolu9ons.com/DATA.htm
• hDp://ar9cles.economic9mes.india9mes.com/2012-­‐07-­‐13/news/
32663798_1_india-­‐growth-­‐story-­‐lower-­‐growth-­‐incomes-­‐rise
• hDp://financeminister.in/latest-­‐india-­‐income-­‐tax-­‐slabs
• hDp://scn.sap.com/docs/DOC-­‐56507
• hDp://www.fnbnews.com/ar9cle/detnews.asp?ar9cleid=34857&sec9onid=1
• hDp://www.livemint.com/Poli9cs/FD9G5mJJTe5v8RjrkluhwL/India-­‐CPI-­‐tops-­‐
es9mate-­‐in-­‐test-­‐for-­‐Rajan-­‐as-­‐industry-­‐modera.html
• hDp://economic9mes.india9mes.com/news/economy/indicators/fall-­‐in-­‐rain-­‐
deficit-­‐monsoon-­‐situa9on-­‐shows-­‐significant-­‐improvement/ar9cleshow/
39907428.cms
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27. THANK YOU