Toward Deflation Again...No, No Way is the current opinion / assurance / even, assertion at large amid the persona of all hues who matter today in every aspect / respect in the country. They reiterate, stand by their 100% claim that deflation in the country now is out of question. Mention may be made here that deflation did happen in Bharat not long ago but in April 2023 --- its coming out now, amazingly --- defying all assurances, promises, swearing-in against them and to the utmost contrary. The country-people, touch wood, did not get the hang of it or did not understand it then, they are seemingly not understanding it now as well, deflation being still a new phenomenon in this country, come what may. Before open economy in this country in 1990-91, it was closed economy packed with quota, contract, license, permit Raj this, all were closed, hush-hush. Ever since economy in this country opened in 1990-91, growingly, the actual hang of open economy, unlike in closed economy, steadily began being confined in "new set of persona owing their allegiance to out-'n'-out new masters, not necessarily, they from this country alone but from centuries old MNCs, economic sharks based out of India.
They were eyeing on India since long many years but could not make an entry here due to closed economy. But in Open Economy, they are having a field day, freely selling their products (their qualities of no concern as they are free to sell any thing, every thing as long as they keep the people of India attracted towards them; that is what is happening at random with no check of any kind, thanks to current open economy) at what ever prices they want. Mind you, its taking place at random all throughout the country --- from its urban to village areas --- openly. Not wrongly so, at the same time, as it is free economy, every one is free to sell his / her products. And what do they do when the so-called deflation is lurking imminently?!? Currently, nearly? They could not care less for that for obvious reasons of contemplation due to their mega-decades' practical experiences of doing businesses globally...They thus go on selling their products whether they are actually sold or not. But because of them, many Indians' India-made products' businesses are acutely shrinking; with deflation in limelight, the masses holding back (mass)purchases, the overall situations in the country's markets are near-abysmal if not awful. Because, the purchasers more or less all over are waiting for the already-fallen-prices to fall further to be at their lowest nadir. This naturally leads to not inflation but deflation (markets after markets forced to sell their products at even much below their cost prices to avoid "expiry" of their wares). Is deflation good or bad? Although lower prices may seem like a good thing at first, deflation in fact is highly damaging to the economy. Deflation leads to a vicious circle for the economy since it drives down spending and investment which in turn leads to lower economic growth and higher unemployment as now here. Deflation is exact opposite to inflation. But both are malevolent, maleficent, so to put exactly. As far as deflation is concerned, its damaging to economy prices steadily fall over time because either demand falls like now, a lot of companies, manufacturers produce much more goods and services than required. Either way, sales continue to fall, forcing companies to give rapid discounts, price cuts to attract --- as, now --- consumers. This leads to a steady fall in prices over time. Now, just like inflation, deflation is a continuous cycle, very relevant in context of the country today. As prices are being predicted to fall with the passage of days, consumers can well withhold spending money waiting for prices to fall even further. This is because they want to buy goods or services at a even more lower rate 'tomorrow'. This means, demands continue to fall leading to further deflation. A fall in sales is not good for company profits. As a result, companies too withhold investing in new projects. All this lead to a slow down in economy. Now it indeed remains to be seen how "Mananiya Narendra Modi" rescues the country from such a "would-be" predicament, erase deflation!