The market operates on the buying and selling of goods. Here buyers buy goods and sellers sell goods. These relationships are regulated by the government. In fact, the government not only regulates the market but also protects it. Apart from this, the government also earns some money from these business activities. This earning is in the form of taxes and tariffs.
This market system is breached when its rules are tampered with by chaotic activities. For example, making fake copies of a product and putting it in the market and it can completely reduce the sales of genuine products.
Now let’s try to understand why this happens?
The factor behind this is inflation. In fact, due to the cost of the goods, he is hesitant to take it to the common customer. This customer segment either postpones it for tomorrow or postpones its purchase. In such a situation, some companies take advantage of this compulsion of the customers and put fake copies of these products in the market.
There are two classes of damage here. One, the customers get counterfeit and low quality goods. Second, honest producers of these goods are not able to compete with the market of counterfeit goods. After this, the healthy business environment of the country also gets disturbed. Indigenous industries and businesses are getting ruined. Repeated purchases of perishable goods also adversely affect the pockets and savings of the customers.
Apart from this, the government also faces huge losses in receipt of taxes. In fact, due to black marketing of goods, they are outside the purview of the legitimate marketing system. Due to this, there is also a bad effect on the social security plans and infrastructure construction of the country because the governments expand these social sectors only with the income from taxes.
It does not only challenge India at the economic level, but it is also very challenging for India at the strategic level. Actually China takes advantage of these compulsions of India. They bridge the Indian market with their cheap products. Due to this, India’s trade deficit with China only increases. It also causes serious damage to the foreign exchange fund of India.
Now if we talk about solutions to deal with these problems, first of all the government will have to rationalize the rates of taxes. With this, the producing companies will not even think of making counterfeit products. Not only this, it will also create a healthy business environment.
Along with this, the confidence of the customers in the market will also increase. Good products will last a long time. This will also get rid of the problem of repeated expenditure on these items. This will not only encourage savings to the customers. Along with this, their consumption capacity will also be developed. Where strong and stringent laws will create the credibility of the government, at the same time investment in India will also increase. This will not only make India a great investment destination and a progressive country, but also take the country from a developing economy to a developed economy.