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Indian economy hit as retail inflation reaches 7.35%, vegetable prices rise by 60%

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

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Indian Economy

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

The upsurge was largely due to the rise in food prices, which account to more than a third of Indian household’s budget, and the overall food inflation was 14.12% in the month of December, according to the Ministry of Statistics and Programme Implementation.

The vegetable prices have risen by 60%, while the price of pulses saw an increase by 15.44%, food & beverages at 12.16%, meat & fish by 9.57% and spies by 5.76%, mostly pertaining to the supply shocks caused largely by extreme weather events.

Prices of potatoes, onions and tomatoes, the three most important vegetables in the CPI basket, increased by 37%, 328% and 35% respectively in December on a year-on-year basis.

Food Price Inflation

Food Price Inflation

Retail inflation based on the Consumer Price Index was 2.11% in December 2018 and 5.54% in November 2019.

The economic growth of India was 4.5% in the third quarter of last year that ended in September 2019 and is expected to be to at 5% for the last quarter going into 2020.

Consumer Price Index. (Source: CMIE)

Consumer Price Index. (Source: CMIE)

Monetary Policy Committee (MPC) has paused the cutting of interest rates due to the rise in retail inflation and they will use the December data when they sit out for the meeting in February.

Trends:

According to CMIE report, over the last four months, food prices and fuel prices have seen a significant rise which in turn has affected the overall CPI.

Food CPI in February 2014 was 7.89%, which has now risen to 14.12%.

While the overall CPI in February 2014 was 7.27 %, which has now scaled to 7.35%.

Future:

State Bank of India (SBI) has projected the rate of retail inflation to breach eight per cent in January 2020, as per a report in Businessline. It also cautioned that if food price inflation does not revert, the economy can slip into stagflation.

India News

Delhi Pollution: GRAP-II curbs imposed across NCR as AQI hits 324

Delhi’s air quality deteriorated to the very poor category on November 2, prompting the CAQM to implement GRAP Stage II across Delhi-NCR. The measures aim to control dust and vehicular pollution.

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Delhi’s air quality deteriorated to the ‘very poor’ category on Monday, November 2, prompting the Commission for Air Quality Management (CAQM) to invoke Stage II of the Graded Response Action Plan (GRAP) across the National Capital Region (NCR) with immediate effect.

The national capital’s Air Quality Index (AQI) reached 324 at 4 pm, placing it in the very poor category. The deterioration followed a sharp increase in pollution levels over three days, with the AQI rising from 117 on October 31 to 261 on November 1 before crossing the 300 mark on Monday.

The CAQM attributed the worsening air quality to unfavourable meteorological conditions. Forecasts by the India Meteorological Department (IMD) and the Indian Institute of Tropical Meteorology (IITM) also indicated that Delhi’s air quality could remain in the very poor category over the coming days.

What is GRAP Stage II and why has it been imposed?

The Graded Response Action Plan is a set of emergency measures designed to tackle worsening air pollution in Delhi-NCR. It has different stages based on the severity of air quality.

Under the AQI classification, readings between 301 and 400 fall in the very poor category. GRAP Stage II is applicable when air quality reaches this range.

With Delhi’s AQI climbing to 324, the CAQM directed authorities to implement Stage II measures across the NCR. The directions also require agencies to continue implementing measures under the earlier stages of GRAP.

What restrictions come under GRAP Stage II?

The second stage of GRAP focuses on strengthening pollution-control measures, particularly those related to road dust, vehicular emissions and other sources of pollution.

Some of the important measures include:

  • Road cleaning: Authorities are required to intensify mechanical sweeping of roads and water sprinkling to control dust.
  • Traffic management: Traffic police are directed to manage congestion at busy roads and intersections.
  • Vehicle checks: Enforcement teams are required to intensify checks for valid Pollution Under Control (PUC) certificates and take action against visibly polluting vehicles.
  • Parking charges: Higher parking fees are among the measures intended to discourage the use of private vehicles.
  • Diesel generators: The use of diesel generator sets is subject to stricter regulation.
  • Public transport: Authorities are required to encourage the use of public transport to reduce vehicular emissions.

These measures are intended to reduce pollution levels across Delhi-NCR.

Delhi’s AQI worsens over three days

Delhi witnessed a significant deterioration in air quality over a short period.

The AQI stood at 117 on October 31, placing it in the moderate category. It subsequently increased to 261 on November 1, entering the poor category.

On November 2, the reading climbed further to 324 by 4 pm, pushing the national capital into the very poor category.

The situation was also reflected in readings from individual monitoring stations. Several locations recorded AQI levels above 300.

Among the areas reporting high pollution levels were RK Puram, ITO, Akshardham, India Gate, Alipur, Dwarka Sector 8 and Delhi University’s North Campus.

With pollution levels worsening and unfavourable weather conditions expected to persist, authorities have been directed to strengthen enforcement of the prescribed pollution-control measures across the region.

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PM Modi to inaugurate Pune metro pink line, launch Rs 21,800 crore projects

Prime Minister Narendra Modi will inaugurate Pune Metro’s Pink Line and lay the foundation stone for Phase II projects worth around Rs. 13,500 crore on November 3. The combined value of the projects is approximately Rs. 21,800 crore.

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PM Modi

Prime Minister Narendra Modi will inaugurate Pune Metro Line 3, also known as the Pink Line, and lay the foundation stone for four new metro corridors under Phase II on November 3. The projects, taken together, are estimated to be worth around Rs. 21,800 crore.

The inauguration and foundation stone-laying ceremony will take place through video conferencing at 12:30 pm. The Prime Minister will also address the gathering.

The programme includes the inauguration of the approximately 23-km-long Pink Line, developed at a cost of over Rs. 8,300 crore, and the launch of Pune Metro Phase II, which has an estimated cost of around Rs. 13,500 crore.

Pune Metro Pink Line to connect Hinjewadi and Shivajinagar

The Pink Line, officially known as Pune Metro Line 3, will connect Maan with District Court Metro station. The approximately 23-km corridor will provide metro connectivity between Hinjewadi, one of Pune’s major IT hubs, and Shivajinagar.

The new line is expected to improve access to important employment, commercial and residential areas, particularly benefiting IT professionals and other daily commuters.

It will also integrate with Pune’s existing metro network, allowing passengers to travel between different parts of the city more conveniently.

The project is expected to reduce dependence on private vehicles, ease traffic congestion and help lower vehicular emissions.

Pink Line to be operated entirely by women

An important feature of Pune Metro’s Pink Line is that it will be operated entirely by women train operators. The initiative has been highlighted as a step towards women’s empowerment and gender-inclusive public transportation.

The corridor also incorporates renewable energy measures. Around 30 per cent of its total electricity requirements are envisaged to be met through solar power.

Four new corridors planned under Pune Metro Phase II

Along with inaugurating Line 3, PM Modi will lay the foundation stone for Pune Metro Phase II, estimated to cost around Rs. 13,500 crore.

The expansion will comprise four corridors — Lines 2A, 2B, 4 and 4A — aimed at improving connectivity across major residential, commercial and IT hubs.

The proposed routes include:

  • Line 2A: Vanaz to Chandani Chowk.
  • Line 2B: Ramwadi to Vitthalwadi.
  • Line 4: Kharadi to Khadakwasla.
  • Line 4A: Nal Stop to Manik Baug.

Lines 2A and 2B will together cover approximately 12.75 km. Line 4 will span around 25.52 km, while Line 4A will cover approximately 6.12 km.

The eastern extension between Ramwadi and Vitthalwadi is expected to improve connectivity to developing residential, commercial and IT areas in Kharadi and Wagholi.

Key Pune areas to benefit from metro expansion

The proposed Phase II corridors will connect several important locations across Pune, including Kharadi, Magarpatta, Hadapsar, Swargate, Manik Baug, Nanded City, Pune Cantonment and Warje.

The new corridors will also integrate with the existing Pune Metro network and intercity bus services through interchange facilities at Swargate, Nal Stop and Kharadi Bypass.

The expansion is aimed at strengthening public transportation infrastructure and providing commuters with a more integrated urban mobility network across the city.

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Supreme Court allows green crackers in Delhi-NCR for Diwali, sets time limits

The Supreme Court has allowed certified green crackers in Delhi-NCR for two days ahead of and on Diwali. The complete ban on firecrackers will return from November 9.

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Supreme Court

The Supreme Court on Monday permitted the use of certified green firecrackers across Delhi-NCR for two days ahead of and on Diwali, offering a temporary relaxation of the existing restrictions on fireworks.

Under the court’s directions, green firecrackers can be burst on November 7 and 8, between 6 am and 7 am and again from 8 pm to 10 pm. The complete ban on firecrackers will be restored from November 9, the court said.

The decision comes ahead of Diwali, which falls on November 8 this year. The relaxation is subject to several conditions governing the manufacture, sale and use of firecrackers.

The court also noted that it had not been provided with adequate data to determine whether a complete ban was the most effective solution to Delhi-NCR’s annual air pollution problem. It observed that there had been no significant improvement in Air Quality Index (AQI) readings despite the firecracker ban imposed in 2024.

Supreme Court sets restrictions on firecracker use

The Supreme Court has prohibited the bursting of firecrackers within a 300-metre radius of hospitals, nursing homes, primary and district health centres, old-age homes and notified silence zones.

Educational institutions will also fall under this restriction.

These locations will be designated as ‘No-Cracker Zones’, with authorities directed to mark their boundaries on the ground and publicise the restrictions.

The court has also directed authorities to ensure that the permitted time slots are followed during the two days.

Strict conditions for green cracker sales

The Supreme Court has laid down specific conditions for manufacturers and traders to prevent conventional firecrackers from being sold in the name of green crackers.

Only manufacturers holding valid certifications from the Council of Scientific and Industrial Research-National Environmental Engineering Research Institute (CSIR-NEERI) and the Petroleum and Explosives Safety Organisation (PESO) will be permitted to manufacture approved green crackers during the specified period.

The manufacture and sale of firecrackers joined in series, commonly known as ‘ladis’ and garlands, have been prohibited.

Firecrackers containing barium and those not approved by CSIR-NEERI as green crackers will also not be permitted.

The court has further directed that green crackers must be sold in sealed boxes to prevent conventional or unauthorised firecrackers from being mixed with approved products.

Each box must carry a product-specific QR code linked to the particular product and batch. Scanning the code should provide details of the manufacturer, NEERI registration, PESO or District Magistrate licence, formulation and test certificate.

Online sale prohibited, designated locations identified

The Supreme Court has directed District Collectors and Commissioners across the National Capital Region to identify designated locations for the sale of green firecrackers in consultation with the respective Superintendents of Police.

The sale of firecrackers at any other location, including through online platforms, has been prohibited.

Authorities have also been directed to display banners at designated shops and sale locations explaining how consumers can identify CSIR-NEERI-approved green crackers.

The court has asked authorities to check vehicles entering Delhi-NCR to prevent the transportation of illegal and conventional firecrackers.

It has also directed police and district administration officials to conduct inspections, verify QR codes and confiscate unauthorised firecrackers.

What are green crackers?

Green crackers are developed by CSIR-NEERI and are designed to produce around 30 per cent less pollution than conventional firecrackers.

They contain reduced quantities of certain chemicals, including barium and aluminium, and incorporate additives intended to suppress dust and smoke emissions.

These crackers are also designed to produce less noise, burn for shorter durations and release controlled flames.

Complete firecracker ban to return on November 9

The Supreme Court has clarified that the relaxation is temporary and that the complete ban on firecrackers in Delhi-NCR will be restored from November 9.

The court has also directed manufacturers and traders to furnish monetary security. The security deposit will be forfeited in case of violations of its directions.

The measures are aimed at regulating the use and sale of firecrackers during Diwali while addressing concerns over air pollution in the National Capital Region.

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