It is the color of money which decides prices.

Retail inflation in India has gone up again and it seems that wholesale prices will also start going up soon, after falling for one year. Why is India so prone to rising prices, but not China where the inflation rate was 1.5% when the government is trying to move the economy from investment led growth to consumption led growth? Per capita GDP in China is $7593.9 compared to that of India at $1595.7, so spending should be many times that of India, putting upward pressure on prices. Because a great part of the Indian economy is conducted in cash and employs 90% of the workforce. It is estimated at 40% of GDP, at $780 billion. Although this money maybe defined as black because it generates no income tax there is another economy floating parallel to the real one, financed by bribes, extortion and scams. A report by a think-tank estimates that $51 billion in black money flowed out of India every year from 2004 to 2013, during Congress Raj. No wonder the Congress is using every trick to block the Goods and Services Tax bill, which will eliminate evasion of taxes to a large scale. They disrupted the Lok Sabha because the Chief Minister of Kerala was not invited to a function, organised by a backward community in Kerala, and attended by the Prime Minister. Firstly, the chief minister does not own the state and secondly, organisers have the right to invite, or not, anyone they please, to a meeting. The nation held hostage to manufactured outrage by a party which has kept the country poor for 67 years and destroyed the economy in the last 10 years of its rule. If $51 billion is flowing out of the country many times that amount is flowing into real estate inside the country. Land grabbing in the name of the poor is an extremely lucrative way to make billions. Slums have taken over more than 60 hectares of prime land belonging to Indian Railways, in Delhi. This is said to cost Rs 60 billion but it could be double that if the black money part is taken into account. The AAP government, which is planning to increase auto-rickshaws by another 10,000, by banning private cars, has forbidden demolition of the slums. Add to the vote bank by making us miserable and destroying the rule of law. The Railways, which is the lifeline of the country, spent 97.8 paise for every rupee it earned last year. This is set to rise to 110% once the unjustified pay hikes of over 23% kicks in. Since independence a vast system of corruption has locked the country into its tentacles. Politicians, civil servants and business fellows are collaborating in looting the people and they have bought the media to mount a series of false hysterical attacks on the government to stop it from functioning. The dark side always wins in real life.