RBI governor Das flags growth slowdown, deputy raises alarm on inflation
Section 144 of CrPC, prohibiting assembly of five or more people at one spot, will be in force during the period, Thackeray had said, but refrained from terming the new curbs as a lockdown.
After a delayed start, the monsoon is advancing steadily.
January inflation may undershoot RBI's 6% target.
Insufficient rainfall will have a negative impact on the economy.
With two more deaths, the fatalities due to flood this year has gone up to 18.
Goyal said India has been recognised as brightest spot in the world in last five years.
There was a delay in sowing of kharif onion because of late arrival of monsoon and later floods in many states damaged the crop.
Currently, the retail inflation is well below the RBI's comfort level. The government has asked the central bank to keep inflation in the range of 4 per cent.
The agriculture minister said the government's constant efforts are aimed at making farmers prosperous by increasing their income.
Central Statistics Office has come out with GVA to measure growth.
"The main risk stems from the uncertainty surrounding the outcome of the south west monsoon in view of the rising probability of an El Nio event around July-August, and its implications for food inflation," RBI said, as it kept the status quo on key interest rate for the third time in a row.
A portion of the 15-foot tall private compound wall, totally wet due to heavy rains lashing the area for the past few days, fell on the adjoining tiled-roof houses in Nadur village.
The drought of 2009 still haunts the India Meteorological Department.
State Bank of India's house economists on Monday said the recent farm sector reforms reek of parochial thinking and promote lazy farming as they only cater to cereal-producing states. In the recently concluded monsoon session, the government rushed through three legislation to change the way agricultural produce is marketed, sold and stored by dismantling the decades-old APMC (Agricultural Produce Market Committee) mandis.
Wholesale price-based inflation eased to a nine-month low of 4.68 per cent in February, while retail inflation slowed to a 25-month low of 8.1 per cent.
Given that there are hundreds of players in the shadow banking space, it's hard to make a credible estimate of potential NPAs. That creates more scope for panic, says Devangshu Datta.
Prices of perishable items could spike in the near term.
Costlier vegetables slowly pushed retail inflation, which had remained well within the Reserve Bank's comfortable level of 4 per cent during most part of 2019, peaked to more than three-year high of 5.54 per cent in November.
While everyone raves about the joys of the monsoons, Keya Sarkar is not as enthusiastic.
Concerned over possible fall in pulses production due to poor monsoon so far, the government is considering reintroducing its scheme to sell subsidised pulses through ration shops to give relief to common man from price rise.
Of the total cash outgo Rs 40,000 crore is towards enhanced expenditure under Mahatma Gandhi National Rural Employment Guarantee Program and Rs 33,771.48 crore have been sought for direct benefit transfer under Pradhan Mantri Jan Dhan Yojana and National Social Assistance Programme.
Strict lockdown-like restrictions are already in place in the southern stateand the Pinarayi Vijayan government decided to clamp the complete shutdown in the wake of severe spike in the positive cases.
Over to the government how they manage the uncertainty of monsoon and revive spending in order to entice RBI for another round of rate cuts
The NCEAR has indicated some improvement in the fourth quarter of the current financial year.
Experts feel oil prices will remain volatile with an upward bias.
55% of cultivable land still doesn't come under irrigation.
To a specific question on the change in RBI's stance from "neutral" to "accommodative", Das said it means that there will not be any rate hike from here on.
Inflation in the 'fuel and power' basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent.
In many parts of central and north India, monsoon reaches only in July.
Swarms of immature pink locusts and adult yellow locusts are currrently active. Not only are fresh locusts swarms expected to arrive in the coming weeks, but even those already present in India have mated and are breeding new offspring.
NITI Aayog has been working on an action plan to relieve rural distress and energise the agricultural sector
Moody's earlier this week lowered its growth forecast to 7 per cent, from 7.5 per cent.
With economic growth slowing to a six-year low, IMF Chief Economist Gita Gopinath says the government should undertake structural reforms such as bank clean-up and labour reforms to address the slowdown in domestic demand. She rooted for government policies focusing on managing a slowdown in domestic demand, and on boosting productivity growth and supporting employment creation in the medium term.
Key risk for price rise is the 'deficient' monsoon that could lead to a pick-up in inflation expectations.
With satisfactory progress of monsoon rainfalls prompting farmers to bring in additional area under basmati sowing, prices are set to fall lower going forward.
The economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions, an RBI article on Tuesday said. Observing that the retreat of the second wave of coronavirus pandemic has been slow, the RBI in an article on the 'State of Economy' said, the aggregate demand conditions are buoyed by the release of pent-up demand post unlock, while the supply situation is improving with the monsoon catching up to its normal levels and sowing activity gaining pace. "Reaffirming the traction that the economy is gaining, the manufacturing activity is gradually turning around, while contraction in services has moderated.
The finance minister has increased the quantum of rural credit, with particular emphasis on short-term crop loans for small farmers and focussed heavily on improving food storage and processing infrastructure as well as supply chain management.
Monetary Policy- Easing expected to happen later this financial year.
Wall Street brokerage Bank of America Securities has pencilled in lower than the consensus retail inflation for the current fiscal year at 5 per cent, but higher than the previous forecast of 4.7 per cent. Stating that the June print will be critical for the future trajectory -- after the extremely high 6.3 per cent print in May, the brokerage in a report on Friday revised upwards its forecast by 30 bps to an yearly average of 5 per cent for the year to March 2022. "Though the June print will be critical for future trajectory, beyond near-term, we find some comfort from our analysis of four key factors that are likely to influence CPI inflation the most.
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