Price rise and its effects
Delhi, which was once regarded as a pocket-friendly metro of the country for all income groups has now changed into one of the costliest city in India over the past few years. From being the most affordable city with cheap eating, commuting and rent options, the city has seen a sharp rise in the cost of living.
For the past few months, the constant increase in inflation leading to subsequent price rise in basic commodities is giving the common man a hard time. Though the opposition parties carry out regular protests and demonstrations, the pattern of price rise remains the same. We checked with Delhiites how the picture has changed in the past few years and how the rise in living standards is affecting their lifestyles.
Sumita Shulka, 28, who was born and raised in Delhi, feels that her monthly budget has almost doubled in the past few years. She says, “Six years ago, Rs 4,000 was my starting salary and I could survive as I live with my parents and there are no overhead costs.” Sumita says that now she spends around Rs 3,250 on transport alone, not adding the cost of eating out and other expenses like watching a movie. “Going out even on dinner and drinks can set one back easily by Rs 1,500. It is getting expensive every day. With the recent hike in auto and taxi fares, I am spending Rs 120-130 daily. Switching over to a bus is not feasible for me right now,” she says.
Vineet Kumar, a professional, who came to Delhi seven years ago as a student and is now working with a media firm is also feeling the pinch.
He recalls, “As a student when I came to Delhi, I stayed in North campus and my budget including food and other bills was around Rs 5,000 per month. Now, I stay in the same area, but I have to pay Rs 8,000-10,000 just for accommodation and food. The price of CNG, petrol, food, milk and many other things including taxes have gone up drastically in the past few years.”
However, everything has a bright side. There is a silver lining in the price rise too as it indicates a growing economy, feel experts.
Rajat Singhal, an economist and co-founder of Tutoring D Street, that conducts economics and finance classes for professionals, refers to the ‘theory of convergence’ in developing nations and explains, “Any city in the world which has good infrastructure has to maintain a considerable amount to maintain it for long-term. In the preparation of the Commonwealth Games, the capital has invested a lot in the construction of roads, efficient metro system, new airport terminals and better facilities, due to which the taxes have gone up for residents.”
He adds, “The subsidies have been removed, and there has been inflation and deregulation of oil prices, which further led to rise in cost of living. This, in turn, makes commuting, rent and overall increase in price of other facilities. But, accordingly the wages have also increased. Now, people are earning more than before so it’s not a very grim picture.”
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