What does subsidy mean | definition | economics | define | example
What does subsidy mean | definition | economics | define | example Since from independence India has given more importance to maintain social justice. At the time of independence India’s per capita income was very low, to help the poor the government took several measures to provide the daily commodities at a price lower than the market price and giving subsidy was one of the important measure. Then what does subsidy mean? It is the type of financial support in the form of money given by the government to business institutions or industries to provide their products& service at lower price and the government will recoup their los s. How it works? If a company is selling its product at Rs.100 to reduce the price burden for common people the government ordered the company to sell at Rs.60 and RS. 40 loss incurred by the company will be compensated by the government through subsidy. Though ethically this form may be beneficiary but if it i