Rajya Sabha member and former Chairman of Prime Minister's Economic Panel C Rangarajan on Monday said he expects inflation to ease to 10 per cent by December. He said inflation last year was moderate almost at the end of December, so base effect will be to heighten inflation in the current year.
The rupee has recovered to trade at 63 level after hitting its life-time low of 68.85 towards August-end.
India's economic growth rate is expected to be at least 6 per cent in the 2013-14 fiscal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.
With major sectors of the economy showing signs of slowdown, the list of those pegging India's economic growth at below eight per cent in the current financial year is expanding.
Food inflation rose to 17.47 per cent in the third week of November against 15.58 per cent in the previous week.
Regarding the impact of drought on economy, he said, the growth rate could slip to 6-6.5 per cent from 6.7 per cent in the previous fiscal. Stressing that the government should ensure that imported pulses reach the targeted people, Rangarajan said, there is a need to strengthen the public distribution system.
The proposed move would lead to dismantling of the administered price mechanism.
Based on the panel's formula, the base price of domestic natural gas comes to around $7.4 per million British thermal unit (mBtu), but the pricing formula proposed by RIL, officials say, translates the price into $13-14 an mBtu.
He feels that RBI could be waiting for a period or an opportune movement when there could be sustained reduction.
Amid projections that inflation could touch the double-digit mark, the Prime Minister's advisory panel on Thursday said it could fall to 7 per cent by fiscal-end.
Although the economy did well during the second quarter (July-September) recording a growth of 7.9 per cent, the output of agriculture and allied sector slipped to below 1 per cent.
Fiscal correction is needed even after the changes that have been made now, otherwise the fiscal deficit would tend to be high.
Rangarajan, who was answering questions on onion prices touching Rs 100 per kg in some cities, said the impact on inflation would not last long.
Slower growth in the developed world is expected to impact emerging economies like India by reducing demand for their exports in rich country markets.
Prime Minister's economic advisory panel has said there was no need for any stimulas package to help the industry tide over the impact of the crisis following downgrade of the US credit rating by Standard and Poor's.
Although the government had pegged fiscal deficit for the current financial year at 5.1 per cent of the GDP in the budget, it has revised the target to 5.3 per cent in view of subdued revenue collection and rising fuel and food subsidy bills.
Pegs the current account deficit for the current fiscal at 3.5 per cent of the GDP.
Industrial growth has entered the negative zone in October, two years after the global financial crisis. But Prime Minister's Economic Advisory Council chairman C Rangarajan pins hopes of a revival in the fourth quarter.
He exuded confidence that the Indian economy will grow at 5.3 per cent in 2013-14.
Retail inflation in February has come down to a 25-month low of 8.1 per cent.
I think the overall growth rate of the economy will be between 5.5-6 per cent, says C Rangarajan.
Budget has laid emphasis on increasing social spends
In the January, 2013 Cabinet note on revision of prices of all domestically produced natural gas, the ministry had proposed immediate implementation of the formula suggested by a panel, headed by Prime Minister's Economic Advisory Council Chairman C Rangarajan, for all producers except in cases where the current rate is valid for a certain period.
More than 500 scientists, academicians and students have written to the Bengaluru-based IISc expressing dismay over the cancellation of a discussion on anti-terror law UAPA that was to be led by student activists Natasha Narwal and Devangana Kalita.
'The terminal year could yield nine per cent.'
In an interview to Business Standard, Rangarajan says CAD will be brought under control at around two per cent of the gross domestic product.
The Standing Committee on Petroleum and Natural Gas in a report tabled in Parliament said the proposed formula is a simple average of two methodologies -- price of imports of LNG into India by different suppliers, and weighted average of prices of natural gas prevailing at Henry Hub in USA, National Balancing Point in London and netback import price at the well head of suppliers into Japan.
'Even the President does not have the power to overrule the ECI.'
C Rangarajan, chairman, Prime Minister's Economic Advisory Council tells Business Standard that the measures taken by the government will lead to economic growth of at least 6 per cent in FY14 against a decadal-low growth of 5 per cent in FY13.
He says though agriculture and industry would get a fillip in the second half of this financial year, a complete economic revival is expected only in 2013-14.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
'There are occasions when the prices of individual items like food raise inflation; then supply-side measures must be taken.' 'But if there is continued inflation, it means liquidity is aggravating the situation.'
'It appears the growth rate could be around six per cent'.
'The actions of Indian monetary authorities will depend on how quickly they want the inflation to come down to 4 per cent.'
'If because of El Nino, the monsoon is affected adversely in the current year, naturally it will affect income projections and consequently Budget numbers.'
Ahead of the inaugural edition of the Women's Premier League, Royal Challengers Bangalore named Ben Sawyer as head coach.
Gonsalves has entered the 'big league' having served four years as a scout for Punjab Kings.
Before Data Patterns developed an indigenous check-out equipment, Brahmos Aerospace was paying a Russian supplier three times what it will now pay the Indian company.
It is time for the three finance ministers of the 1990s to reveal the real hero, says T C A Srinavasa-Raghavan.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances