Informal Letter To Friend In America Telling About Rise In Prices In India

The cost of everything is increasing with greater speed in India. Everything is getting costly day by day. There are so many reasons for the increasing cost. Read this article “Informal Letter To Friend In America Telling About Rising In Prices In India”. In this letter, a person is telling his friend who lives in America about the rise in prices.

Informal Letter To Friend In America Telling About Rise In Prices In India

Informal Letter To Friend In America Telling About Rise In Prices In India

Examination Hall,



2nd Feb., 201…


My dear William,

In your last letter, you were anxious to know why prices are rising so steeply in India. In this connection, I have to inform you that the population of India is increasing by leaps and bounds. The corresponding increase in agriculture and industrial production is nowhere to be seen.

Naturally, there is a shortage of essential goods and the necessities of life. In spite of our best efforts neither the family planning program has been satisfactorily implemented nor the production in agriculture and industry has shown an appreciable increase. So we are facing a shortage of food products, cement, oil, timber, etc.

Another reason for the great rise in prices is the faulty taxation policy of the Govt. India is the only country where taxation is very heavy. For instance, if a man earns one lakh of rupees a year, he shall have to pay income tax to the tune of fifty-five thousand rupees.

Naturally, businessmen think it profitable to pay handsomely to their employees and spend money lavishly on themselves so as to show the minimum income. Again, since the earning of employees is very large, they also do not mind spending lavishly.

As said above there is already a shortage of various articles and coupled with heavy demands of goods, the prices are bound to rise.

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Inflation has also led to an increase in prices. It has put more and more money into the hands of the people and forced them to bid higher for the scarce items available in the market. In about 15 years the money supply has been about four-fold. The value of a rupee has gone to 7 paise only as compared with its value in 1970.

The other contributory factors in raising the price line are the increase in excise duty of bare necessities of life such as sugar, tea, matches, etc. and the import restriction on consumer goods. The ghee and oil prices have also gone up. They have had an adverse effect on the prices of other Commodities.

What is still worse, the agricultural and industrial production of India has received a set-back owing to floods, earth quakes, cyclones, droughts, etc.

The crux of the problem is that consumers should impose a voluntary Cheek on themselves and reduce the consumption of essential goods or agricultural and industrial production should he stepped up.

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In addition to the above, we have been plagued with several other external tragedies. We have had to wage four major wars-three with Pakistan and one with China within a span of 50 years. So we had been forced to spend more and more on our defense efforts.

The effect of rising prices has been ruinous. The middle classes, salaried people and low-income groups are being crushed. People with a fixed income have gone to the dogs.

Of course, in this connection, the dirty part played by the boarders, profiteers, black-marketeers, smugglers and other anti-social elements cannot be ignored. It is high time that these anti-social elements were brought to book.

The Govt. has declared that the prices would be controlled and brought low. But there is a world of difference between saying and doing. It is high time that sincere efforts were made by the government to curb the prices of various articles, especially the necessities of life.


Yours Sincerely,



Also, Check “Letter to a friend giving views on inter-caste marriage

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  • My name is Ajay Kumar. I am Digital Marketer, Seo Consultant, and Entrepreneur. I have an experience of 7 years in the digital world and created many digital products.

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