Many experts argued against retaining 4% plus-minus 2% target, while some wanted to scrap the framework altogether. But it provides stability, can help growth.
As wave upon wave of Covid-19 is seen in India & abroad, the year is likely to witness alternating good & bad news, causing volatility in financial markets.
Banks’ ability to finance infrastructure projects is impaired, so DFI concept has made a comeback. Its target is to raise Rs 3 lakh crore for these projects.
Performance of corporate India showed a sharp recovery in October-December quarter. Decline in Covid-19 cases & step-up in vaccination will further support recovery in coming months.
The duty on petrol, diesel is the govt’s way out of a tight fiscal situation, but it can lead to problems like inflation & excessive dependence on petroleum products.
India’s disease burden was related to poverty, but it increasingly relates to economic growth that’s not mindful of the new health risks emerging from it.
If govt puts its weight behind privatisation and does not allow unions, bureaucracy or opposition to derail its plan, this will be a game-changing Budget.
Modi govt should follow this by reducing red-tape, simplifying tax & regulatory framework, and reforming financial sector to create environment for investment.
Move to bring down differences in commodity prices with neighbouring states, says government. Oppn, dealers blame it on welfare, Congress's guarantees.
Two-day visit by US National Security Adviser Jake Sullivan seen as critical to both countries' focus on convergences in the relationship rather than differences.
Occasional lovers’ tiffs have marked history of RSS-BJP relations. To think that Nagpur will bring about any change in leadership is a misreading of both its intent and its power.
Is inflation really under control? Every month, I find that my groceries and vegetables bills keep climbing up! We are just a family of three senior citizens. No luxury stuff for us.
Look at daily edible items:
(1) Toor dal increased from Rs.80/ kg (March 2020) to Rs.140/ kg.
(2) Musturd Oil increased from Rs.105/ kg (March 2020) to Rs.150/ kg.
Mrs. ILA PATNAIK should calculate herself the price rise/ inflation. It appears that she is not an economist. She is modinomist.
The text books I read said inflation goes up when demand goes up. In a country reeling under covid-19, abject poverty, miserable employment prospects, demad is not there. No ticky, no laundry used to be chinese laundry women’s claim during thdepression era in the USA. No money, no demand. Inflation had nothing to do with the GOI in that sense.
“Why Modi govt has done well to maintain continuity in inflation targeting framework”
A surprise heading!!!
A well presented piece where it is established that the primary aim of any economy is growth. Inflation targeting is one strategy to achieve growth – albeit it has to be handled deftly.
The Indian economy may not be ready to adopt alternate available strategies for growth such as targeting currency exchange rates, unemployment rates (US),( For instance: There may be an economic trade-off between unemployment and inflation, as policies designed to reduce unemployment can create inflationary pressure, and vice versa) GDP growth etc
Tail piece: Very little place for a full discussion. But goof effort to say it all
Is inflation really under control? Every month, I find that my groceries and vegetables bills keep climbing up! We are just a family of three senior citizens. No luxury stuff for us.
Look at daily edible items:
(1) Toor dal increased from Rs.80/ kg (March 2020) to Rs.140/ kg.
(2) Musturd Oil increased from Rs.105/ kg (March 2020) to Rs.150/ kg.
Mrs. ILA PATNAIK should calculate herself the price rise/ inflation. It appears that she is not an economist. She is modinomist.
The text books I read said inflation goes up when demand goes up. In a country reeling under covid-19, abject poverty, miserable employment prospects, demad is not there. No ticky, no laundry used to be chinese laundry women’s claim during thdepression era in the USA. No money, no demand. Inflation had nothing to do with the GOI in that sense.
“Why Modi govt has done well to maintain continuity in inflation targeting framework”
A surprise heading!!!
A well presented piece where it is established that the primary aim of any economy is growth. Inflation targeting is one strategy to achieve growth – albeit it has to be handled deftly.
The Indian economy may not be ready to adopt alternate available strategies for growth such as targeting currency exchange rates, unemployment rates (US),( For instance: There may be an economic trade-off between unemployment and inflation, as policies designed to reduce unemployment can create inflationary pressure, and vice versa) GDP growth etc
Tail piece: Very little place for a full discussion. But goof effort to say it all