'If you see the composition of items which are causing this spike in prices, most of them have little to do with the kharif harvest, except for pulses and vegetables to some extent.' 'I don't know on what basis the government is claiming that food prices will moderate in the weeks to come.'
However, the estimates could change in the coming months, as full impact of excess rainfall and floods on the standing soybean and urad crops in central and western India in late August and September has not yet been fully taken into account.
With the gradual opening up of shops, hotels, restaurants and catering services with limited number of participants, milk consumption has improved by 5-10 per cent from the lowest level.
Saudi Arabia is insisting on 'In Kingdom' total value-addition requirements
A pick-up in farmer income could have a cascading impact on the rural economy, though agriculture is becoming a smaller part of India's overall rural incomes.
From January-March this year, 64,000 jobs were created in eight crucial sectors of the economy.
Experts say a large part of the expenditure in April was spent on heads such as creating infrastructure for testing capacity and procuring testing kits, among other things.
Since March 2020, WPI food inflation rate continued to fall but the CPI-food inflation rose, signaling a breakdown in supply chain from the mandis to the final household.
Evidently, the economy has come out of the low growth phase in the past two years and it does appear the economy will continue to remain in the plus-five per cent range.
The government clarified that the majority of industrial establishments had reported nil production, and cautioned that the numbers should not be compared with those of previous months. "It is not appropriate to compare the IIP of April 2020 with that of earlier months, and users may like to observe the changes in the IIP in the following months," said the ministry of statistics & programme implementation.
Ways on how consumers can maximise benefits.
Welcoming the latest round of stimulus announced by Finance Minister Nirmala Sitharaman on Thursday, experts said the measures will support the economic recovery boosting demand, job creation and by providing funds to the MSME and stressed sectors. The fiscal impact of the stimulus is likely to be around 0.25-0.6 per cent of GDP in the current fiscal, they said.
For development finance institution to succeed now, the government must stand like a rock behind it and be patient.
The finance minister may stagger some of the recommendations.
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Gold companies have started reducing production. This implies that gold prices will not go on a free fall anytime soon
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Experts say it will make GDP growth target of 5.7-5.8% difficult to achieve, while ministries feel late resurgence will help in sowing of rabi crops.
The core stir issues of remunerative prices and a basic income for farmers has taken a political turn with three major agrarian states of Madhya Pradesh, Rajasthan and Chhattisgarh going to the polls in the next few months
Much of the rural recovery story is based on the premise of agriculture doing well. Even if it clocks a growth of 2.5-3 per cent this year, it is still just around 15 per cent of the overall GDP. The non-farm sector, which constitutes a bigger portion of the overall rural economy, is now hampered by disruptions and lockdowns.
Till June 30, the southwest monsoon was 33 per cent lower than normal, which is among the worst in the last five years, with 28 of the 36 meteorological divisions recording deficient rain.
Can we find fault with RBI for not intervening enough in the market? Actually no, say some experts. A correction in rupee was long overdue.
October infrastructure output, which contributes nearly 38 per cent to the industrial output index, was up 3.2 per cent annually.
The latest official numbers on the price of agricultural produce gives an idea of what's fueling the farmers' protest in Delhi.
A monsoon deficit is likely to affect the agriculture output, which could have an impact on the food inflation
The meeting will focus on how to make the crisis an opportunity for India.
For many farmers, though, a bumper harvest isn't good news, as they have been forced to sell their produce, particularly pulses, dirt cheap.
The reason why private banks will play the deposit pricing game strategically is the weakening of banks' deposits base given the competition from MFs and insurance companies due to tax-savings schemes.
Acreage of these crops is likely to fall as prices drop below MSP in mandis; area under cotton, maize may increase on better realisation
While the farmers are not getting remunerative prices for their produce, at the same time they are forced to pay high prices for items they consume.
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
With RBI holding on to rates, investors should avoid longer duration funds for the near future, experts tell Joydeep Ghosh
Poor rainfall has also depleted water reservoirs levels, which is likely to impact the winter crops.
A reversal of policy at this juncture could jeopardise the recent gains on inflation
While the positive surprise has been the high growth in agriculture, the negative surprise is in the trade, transport, hotels segment where growth came lower than expected, says Madan Sabnavis.
If the industrial sector expanded, growth rate is likely to rise in the remaining quarters to reach 7.6-7.8 per cent for 2017-18.
The highest number of jobs were created in the age group of 18-21 at 1.29 million, followed by 22-25 years of age at 1.12 million during these seven months.
'While collections under the Income Disclosure Scheme explain it partly, indirect tax numbers not showing any effect of the withdrawal of high denomination currency notes was puzzling.'
Higher interest rates in the US do not necessarily coincide with capital outflows.
Unless supported by investment, any spark of a recovery could be temporary, hint economists.
