Do you remember when a ₹10 note felt like a mini treasure? You could buy a packet of chips, a soft drink, and maybe even a bus ride home. Fast forward to today, and ₹10 gets you a toffee at best.
For another instance, have you ever caught yourself saying, “Back in my time, we got a full meal for ₹10”? If you haven’t, your parents must have definitely said this. It may sound like an exaggeration, a dramatic conclusion or just plain ranting, but it’s not. There was a time when knowing the cost of everyday items was affordable, with pocket change actually meaning something.
Today? A cup of coffee costs ₹100, and the grocery store is a luxury experience, rather than a basic necessity in life.
So, what’s actually changed? The short answer: inflation. The long answer? That’s where economics comes in. If you’ve recently finished your 12th grade and you’re looking for courses after 12th, then this blog is for you. Whether you want to take up a BA Economics degree, want to find out about what is causing price hikes or simply want to learn about the economics of India, this blog will help you think about money, markets and spending differently. So sit back, relax, and let's link what you spend, study and the workings of the economy.
Why Things Are No Longer Affordable: Economics Tells You Why
Let’s rewind a few decades. A ₹5 note could get you a glass of milk, a newspaper, and leave you with change too. And today? It may barely get you a chocolate.
So what happened? The answer is one of the most powerful forces in economics - inflation.
Inflation Meaning and Real-Life Impact
What is inflation? The basic definition of inflation is the general increase in the price of goods and services over time. This means the money you have will buy you less today than it would have yesterday. Inflation is why gas prices increase, why restaurant checks increase, and why, when you buy your favourite roadside snacks, it costs you twice as much.
Inflation is not just price increases for no reason. Inflation happens for multiple reasons:
- Increase in demand (too many people want things, and there is not enough for everyone)
- Supply chain shortages
- Higher costs of production
- Global economic pressure
These are all things that students learn about if they are enrolled in a Bachelor of Arts Economics or BSc in Economics course. Degrees in Economics take complex market patterns and conceptualise them into easy-to-understand principles.
From ₹5 to ₹500: What Economics Can Teach Us About Rising Prices
In the early 2000s, a movie ticket at a local theatre was around ₹30 - ₹50. Add ₹20 more, and you could have a samosa and a soft drink during the interval. That’s a weekend outing for under ₹100.
Now? A single movie ticket at a normal multiplex is ₹250 or more, and the snacks will put your total beyond ₹500, even if you’re going solo.
And just think about that for a family of four.
This isn’t just about entertainment. Rent, fees for school, bus fares, and groceries (especially everyday items like milk and atta) have all been increasing steadily for decades, while incomes remain stagnant. You are seeing this switch from pocket change to price shock all around you, and the prices are continuing to increase.
So is inflation always bad? Not really.
The Economics Behind “Good” and “Bad” Inflation
- Moderate inflation indicates growth in the economy. Inflation makes it easy to spend and invest. This is good if you are an economist!
- High and hyperinflation reduce purchasing power and contribute to unstable economic conditions.
Explaining these scenarios is part of the power of studying BA Economics or BA Honours in Economics; we are not just talking about theory, this is reality.
Decoding India’s Economic Journey
There’s no denying that the economy of India has changed dramatically. It transitioned from a largely agricultural economy after gaining independence to one that is heavily reliant on service and manufacturing-based sectors today.
Here are some things worth noting:
- India underwent liberalisation in 1991, allowing international markets access to India.
- The introduction of GST (Goods and Services Tax) on imports as well as across numerous business sectors increased the ease of transacting and converting transactions into tax obligations.
- India’s GDP (Gross Domestic Product) rose significantly as well and gained the status of the world’s fastest-growing economy.
There can be no argument that every positive growth also brings various challenges, such as inflation, income inequality and unemployment, and this is where economists play an essential role.
Whether it's measuring the GDP (Gross Domestic Product) or measuring and understanding the inflation rate, economics is the study of how decisions have an impact on the world and the daily lives of people.
Want to Understand This Better? Study Economics!
The curiosity to ask “Why did the price of onions increase overnight?” or “Why are some countries richer than others?” is the first step to becoming an economist.
Courses like:
- BA Economics
- BA Economics Honours
- BSc in Economics
will provide you the ability to respond to these queries with logic, data and a realistic understanding.
You will cover topics such as:
- Inflation and monetary policy
- GDP and Fiscal Deficits
- Consumer behavior
- Indian economic history
- Global trade and markets
So if you have considered completing a bachelor’s degree in economics, it is a great time to consider as it is one of the most versatile degrees and can lead to a variety of careers in banking, civil services, journalism, finance, and research.
What Can You Do With a BA in Economics Degree?
Here are a few examples of solid job paths with a BA in Economics:
- Economic Analyst
- Policy Advisor
- Data Analyst
- Government Officer (e.g., UPSC or RBI)
- Financial Consultant
- Market Researcher (e.g., sports economics)
With additional studies like a master in Economics, the career options are endless, and keep in mind that many global leaders, including in business and politics, have started with a BA in Economics.
Bonus Tip: Where to Study?
Seeking quality education? The top BA Economics colleges in Bangalore and other top cities provide:
- A strong curriculum
- Hands-on training
- Internships
- Exposure to current economic news
Some of the best economics colleges in Bangalore have educated economists who have made contributions to policy, business and even the media.
You should check the BA Economics syllabus and faculty, and graduate placements prior to selecting a college.
Final Thoughts: Economics Is All Around You
Whether you’re confused about why the price of your favourite chips shot up overnight, or you’re curious about why India is becoming such a global contributor, economics gives you the answers.
It’s not just a discipline. It is an outlook, a lens through which to view the surroundings, where every single price, tax, or policy choice can explain why people respond how they do.
So, the next time someone says, “Everything is way too expensive these days!”- you can smile and say, “That's inflation. And I know exactly why it's happening”.
Want to Learn More?
Explore courses like:
And stay updated with trusted sources like the Economic Times or India’s official GDP reports.
Curious to dive deeper into how India’s economy really works? Read our next blog on “What Every Student Should Know About GST, Inflation, GDP and Indian Economy” and uncover what those big numbers actually mean for you.