The government’s complacency, which was brought on by the decrease in the July figure, was rocked by the surge in inflation in August to almost 7%.
After denying for weeks that the price increase is a problem, the Modi administration has begun to reverse course and hunt for immediate fixes.
The government’s complacency, which was brought on by the drop in the July figure to 6.7%, was rocked by the increase in August inflation to almost 7%.
The RBI deputy governor Michael Patra has indicated the necessity to tighten monetary policy by front-loading interest rate increases and letting go of all concerns over economic growth.
A report from the finance ministry on Saturday urged prudent management of agricultural commodity inventories and emphasised that there should be no tolerance for complacency on the inflation front.
The Modi government will decide whether to extend the Pradhan Mantri Garib Kalyan Anna Yojana, which provides free food grains, for another six months as a result of worries over lower wheat procurement and a decline in rice sowing acreage.
This Kharif season, India’s rice production may decline by 10–12 million tonnes.
According to the Monthly Economic Review of the Finance Ministry, constant macroeconomic vigilance is required to ensure sustainable growth and stability in the face of increased global uncertainty.
The study issued a warning that the advanced countries’ enhanced attention to energy security in light of the impending winter months could exacerbate geopolitical tensions and put India’s so far savvy management of its energy demands to the test.
Because India imports 85.5% of its crude oil needs, rising global oil prices have a significant impact on domestic inflation.
“Remaining content and taking it easy for a long time may not be possible in these uncertain times. Stability and continued growth come with a price: eternal macroeconomic vigilance, it stated.
The primary components of the national logistics policy unveiled on Saturday include a thorough action plan, integration of logistics-related digital technologies, and an online method for secure document exchange.
The policy’s three main goals are to lower logistics costs in India to levels that are comparable to international benchmarks by 2030, work toward ranking India among the top 20 countries in the Logistics Performance Index by 2030, and develop a mechanism for data-driven decision support for an effective logistics ecosystem.
In a tweet, Nitin Gadkari said that the strategy would transform the Indian logistics industry, promote efficient cargo transportation, and reduce logistics costs for companies from 13–14% to under 10%.
According to CII director-general Chandrajit Banerjee, “reduced logistics costs and enhanced efficiencies will stimulate the economy across sectors in many ways.”
(Inputs: Agency)
Prasanta Patnaik