Story of Indian Household: Salary vs Inflation

India is said to be a developing nation where progress is slow and it emphasizes growing technology and infrastructure. While India has focused on infrastructure, citizens believe it takes less care of them as salaries have been reduced and expenses have gone high. Indian households find it quite difficult to manage their daily expenses compared to their salary. The problem is improper skill-based remuneration, higher tax slabs, and taxes after every product and service. Moreover, over the past few years, the cost of products has increased massively which includes daily necessities such as milk and bread. This has led to significant challenges amongst middle-class families. The following are some of the most common challenges faced by the Indian Middle-class people in terms of inflated prices of commodities and services

Paying a higher price for every commodity being purchased is one of the most challenging aspects. Every household needs daily products such as milk, vegetables, cooking gas, and electricity which are also denoted as basic human needs. The infrared prices are subject to the location. However, it has grown equally over the past few years. Many people perceive it through the political angle as the government has minimal support in these issues. The responsibility has been awarded to the respective state Governments who are then responsible for controlling the prices of the products. A very handful of power is administered by the state government for which they cannot do much in the prices. The only solution that middle-class people have is to get a higher salary or earning to make ends meet. 

Yet another significant challenge is the high cost of healthcare and education. Both aspects are essential for an Indian household. Education has seen a spike over the past 10 years. In a given private school the fees for the primary classes are somewhere around 3 lakhs to 5 lakhs which is significantly higher. Not just this, but the college fees have also doubled. Moreover, the quality of education is also hindered as there is immense competition among the schools leading to mismanagement of the student skills.
Coming to healthcare, the cost of recovery from illness has come with a hefty price tag. Insurance amounts are no longer sufficient to cover all the costs and an additional expense needs to be made using the savings. This further drains the financial resources of the middle-class people 

Many households have started investing for a better future and enhanced standard of living. However, middle-class people are again affected because of the investments. In India, the long-term capital gains are taxed at 10 percent to 20 percent depending upon the gained money. For example, if you invest 100,000 in long-term capital gains such as Mutual Funds, a strict 20 percent will be deducted from the amount post and only a sum of 80,000 will be available for you.