GDP growth fails to reach common man: Assocham
The industry body says, despite a 15 per cent rise in the per capita income , the common man is reeling under the burden of rising prices.business Updated: Jun 10, 2007 15:46 IST
Despite a 15 per cent rise in the per capita income and buoyant GDP growth of 9.4 per cent, the common man is reeling under the burden of rising prices of essential commodities, industry body Assocham said.
The rising national and per capita income has hardly had any positive reflection in prices of essential commodities, it added.
An analysis carried out by the chamber on rise in essential commodities prices in the period between January 2006 and May 2007 showed that prices of all essential commodities other than sugar such as wheat, pulses, spices, condiments and edible oil shot up by over 25 per cent.
"Although inflation has come down below five per cent in the last one year and supply-demand gap of essential commodities has narrowed down to some extent, but in totality the prices of essential commodities are refusing to settle down at justifiable level," Assocham President Venugopal N Dhoot said.
Inflation fell to an eight month low of 4.85 per cent for the week ended May 26 from 5.06 per cent in the previous week.
The first priority of the government should be to bring down the prices by maintaining balance between demand and supply, the chamber suggested.