If inflation is 6% a year, something that costs ₹100 today will cost about ₹106 next year. Your money has not changed, but what it can buy has shrunk.
This is why keeping all your savings in cash is risky over the long run. Money sitting idle loses real value every year, while investments that beat inflation preserve and grow your purchasing power.
For example, at 6% inflation, ₹10 lakh would have the buying power of only about ₹5.6 lakh in 10 years. To stay ahead, your investment returns need to exceed the inflation rate — the gap between them is your real return.