The Reserve Bank remains laser-focused to bring back retail inflation to 4 per cent over a period of time in a non-disruptive manner, Governor Shaktikanta Das stressed while voting for status quo in interest rates, as per minutes of the October policy meeting released on Friday. The central bank has been mandated by the government to ensure the Consumer Price Index (CPI) based inflation is at 4 per cent, with a band of 2 per cent on either side. The retail inflation, which was above 6 per cent during May and June, has started moving down and stood at 4.35 per cent in September.
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Under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, the Centre provides an annual financial benefit of Rs 6,000 to eligible beneficiary farmers in three equal four-monthly installments of Rs 2,000 each.
Till August 21, 246 districts were declared as drought affected, out of the 600-plus districts in the country.
The India meteorological department has stated that day temperatures are likely to be above normal by 0.5 degree Celsius, reports Sanjeeb Mukherjee.
The summer and rainy weather is favourable for locusts and they move from one place to another during this time, travelling 150 km in a day.
Prime Minister Modi has certainly pulled back, and his political capital -- dependent as it is on an image that he knows best and never retreats -- may have taken a bit of a beating. But, equally, it is hard to say that the protesters have 'won', argues Mihir S Sharma.
The kharif grain output is estimated to have declined 2.48 per cent to 117.96 million tonnes while the rabi grain output has remained flat at 109.92 million tonnes, according to a government release. Output has declined mainly in kharif pulses and coarse cereals while a marginal dip has been projected in the rabi wheat output.
Indicators show green shoots in the economy with electricity and fuel consumption, inter and intra-state movement of goods, PMI data and retail financial transactions witnessing a pick-up, she said.
However, the growth, driven largely by a bumper rabi harvest and facilitated by relaxation in lockdown, may not have resulted in a big rise in income for a section of farmers.
The Centre will utilise huge network of post offices across the country to sell subsidised pulses, mainly tur, urad and chana, to ensure availability in the ongoing festival season.
Among the key concerns of the Street is market share losses in growth segments, led by higher competitive pressures.
From NITI Aayog to industry leaders to the Reserve Bank of India, all are apprehensive that any major increase in MSP, following the 2018-19 Budget announcements, would push up prices, if not immediately, in the next six to eight months after the decision is taken.
The recent improvement in consumer sentiment is almost entirely a rural India story. Much of the corporate sector reposes faith in rural India to fuel its growth, observes Mahesh Vyas.
'The answer for a quicker boost to growth is simple -- run a much larger deficit, use the resulting public resources to ensure adequate price support for agriculture, subsidise wage costs of MSMEs and accelerate public sector construction-intensive activities,' advises Nitin Desai.
While the likelihood of these states going the Lanka or Greece way may be an alarming assessment, the financial situation of some states such as Punjab and West Bengal is indeed quite weak.
The Reserve Bank on Friday projected retail inflation to be in 5-5.2 per cent range during the first half of the next fiscal year, expecting further softening of vegetables prices in near term. Also, it has lowered the retail inflation forecast for the current January-March quarter of 2020-21 fiscal at 5.2 per cent. The Reserve Bank (RBI) has kept the key policy rate unchanged at 4 per cent, with an accommodative stance, so as to ensure that inflation remains well within the target, Governor Shaktikanta Das said while announcing the last monetary policy of 2020-21.
With rainfall and monsoons becoming highly unpredictable partly due to climate change and partly due to usual changes in weather patterns, it is such innovations by IMD which will help in planning better, reports Sanjeeb Mukherjee.
The domestic availability of onion has been affected on account of damage to kharif crop because of unseasonal rains in key producing states including Maharashtra.
According to the first advance estimates of crop production for 2007-08 report that was released on Wednesday, India can expect record production in maize, oybean, cotton and sugarcane crops.
According to Krishi Bhawan officials in New Delhi, due to the well-distributed rainfall this monsoon, kharif production is set to rise perceptibly and consequently the net sown area will also increase.
There is good news for the Central government, which is struggling to rein in inflation. Monsoon rains were more than normal in June and the government can hope for a better kharif crop, which in turn may help reduce inflation.
The fall in urban sentiments in June is worrisome, observes Mahesh Vyas.
Prices moved up sharply in recent months.
Expecting a better price realisation this year, farmers have gone for pulses in a big way this year.
'I hope the trend is sustainable and that economic activity accelerates going forward.'
The Reserve Bank of India on Wednesday hiked the expected GDP growth for the year ending March 31, 2007 to 8.5-9 per cent.
Acreage of these crops is likely to fall as prices drop below MSP in mandis; area under cotton, maize may increase on better realisation
The coronavirus outbreak has brought a large part of the world's second-largest economy China to a standstill and its impact has been felt across industries.
Officials said good rain in August - though it might not improve acreages much for most crops except urad, moong, and paddy - would help in improving yields in the crops already planted.
Pushed by rising prices of essential kitchen items, the retail inflation rose to an eight-month high of 7.34 per cent in September, making the RBI's task to push growth by reducing the interest rate even more difficult in coming the days. The Consumer Price Index (CPI)-based inflation was 6.69 per cent in August and 3.99 per cent in September 2019. Inflation has been hovering above 4 per cent since October 2019.
Only vaccinations can eliminate the threat of new waves, help raise sentiments and allow sellers and buyers to participate aggressively in the much awaited economic recovery, observes Mahesh Vyas.
The most serious recommendations to change the financial year came in the years preceded by deficient rainfall. The Jha committee was formed after droughts in 1979-80 and 1982-83, reports Rishika Pardikar/IndiaSpend.
Analysts said the demand recovery in two-wheeler and car segments was skewed towards the semi-urban and rural markets.
The sluggish southwest monsoon, which yielded one of the driest Junes in a century this year, appears disappointing this month as well.
Rain deficiency in eastern and western Uttar Pradesh, Bihar, Jharkhand, Gangetic West Bengal, Assam and Meghalaya is 20-46 per cent less than normal as of June 17.
The cumulative loss of salaried jobs since the pandemic is even larger at 12.6 million, reveals Mahesh Vyas.
Prices have continued to move up in Delhi's markets, wholesale and retail, on supply worries and spoilage due to record cold weather.
Since April, India has seen multiple strains of the coronanavirus sweep the nation, upending life and businesses alike. Out-of-home retail and discretionary categories such as durables, auto, fashion, lifestyle, hospitality, food services, travel, and tourism have been the worst-hit as Covid cases remain high, leaving state governments with no option but to curtail mobility and economic activity.
In all, RBI has cut interest rates by 110 bps this year. But this has not yet led to a boost in economic activity. While the growth rate has slowed to a five-year low, consumer confidence is waning and foreign direct investment has plateaued.
