Higher food prices benefit Indian economy: Report
New Delhi: Amid concerns over spiralling inflation, a research report has said that higher food prices actually help in increasing the national income of food exporting Asian nations like India, China and Thailand.
“Higher food prices do not harm everyone. Some gain. In Asia, Thailand, India and China are net exporters of food.
National income goes up, not down, when food prices rise…,” according to a recent report from Singapore`s banking major DBS.
Going by the report, these three Asian countries — having low per-capita income — together exported USD 43 billion-worth more food last year than their food import during the same period.
India`s food inflation shot up to a two-month high of 9.01 per cent for the week ended May 28, due to costlier fruits and onions.