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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

PM Modi chairs high-level meeting with top bureaucrats to review governance priorities

Prime Minister Narendra Modi chaired a high-level meeting with senior bureaucrats in New Delhi to review governance priorities and policy implementation.

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Prime Minister Narendra Modi on Monday chaired a high-level meeting with secretaries of various central ministries and departments in New Delhi, bringing together the government’s top bureaucrats for discussions on governance and policy priorities.

According to official sources, the meeting was attended by senior officials from across ministries and departments. While specific details of the discussions were not made public, the deliberations were expected to focus on administrative reforms, policy implementation and measures aimed at improving the ease of doing business.

Such interactions between the Prime Minister and senior bureaucrats are considered important for reviewing the progress of key government initiatives and ensuring coordination among ministries on priority programmes.

The meeting comes at a time when the Centre is continuing to push for faster decision-making, improved governance mechanisms and efficient implementation of flagship schemes across sectors. Senior officials are also expected to align their ministries’ priorities with the government’s broader development agenda.

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DK Shivakumar warns Karnataka voters: Lose voting rights, lose government benefits as electoral roll revision begins

Karnataka Chief Minister DK Shivakumar has asked citizens to ensure their names remain on voter rolls, warning that losing voting rights could also impact access to government benefits as the state’s electoral roll revision exercise gets underway.

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DK Shivakumar

Karnataka Chief Minister D. K. Shivakumar has urged residents to ensure that their names remain on the electoral rolls as the state begins a large-scale revision of voter lists.

The Election Commission on Tuesday launched the Special Intensive Revision (SIR) exercise across Karnataka, with booth-level officials set to conduct house-to-house visits until July 29 as part of the verification process.

Addressing concerns over the exercise, Shivakumar stressed the importance of retaining voting rights and warned that people who lose their eligibility as voters could also risk losing access to government welfare benefits.

“The right to vote is the right to live,” the Chief Minister said, adding that some states have already begun verifying welfare beneficiaries through similar exercises.

In a move aimed at helping residents complete the revision process, the Karnataka government has announced the issuance of permanent residential certificates. According to state authorities, these certificates can be obtained both online through the Seva Sindhu portal and offline at designated citizen service centres across the state.

State election officials said the revision exercise will cover more than 5.5 crore electors. Over 59,000 Booth Level Officers (BLOs), along with thousands of supervisors and electoral officials, have been deployed for the drive. Political parties have also appointed more than 1.1 lakh Booth Level Agents to assist in the process.

Officials clarified that BLOs will distribute enumeration forms to voters whose names were included in the electoral roll as of June 16, 2026. No documents will be collected during the initial enumeration phase, and officials have appealed to citizens to cooperate by receiving, filling and returning the forms.

The Election Commission has said the draft electoral roll will be published on August 5, after which claims and objections can be submitted until September 4. The final electoral roll is scheduled to be released on October 7.

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Haldia refinery fire leaves 15 injured after blaze erupts in naphtha pipeline

At least 15 people were injured after a fire broke out in a naphtha-carrying pipeline at Haldia Refinery in West Bengal early Tuesday morning.

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A major fire broke out at the Haldia Refinery in West Bengal early on Tuesday, injuring at least 15 people after flames engulfed a naphtha-carrying pipeline, according to reports.

The incident reportedly took place between 4 am and 5 am when flames suddenly erupted from the pipeline inside the refinery premises. Workers present near the site suffered burn injuries as the fire spread rapidly.

Visuals from the scene showed thick black smoke rising high into the sky as emergency teams and workers attempted to bring the blaze under control. Local residents and refinery authorities rushed to the spot soon after the incident was reported.

The injured were shifted to the Haldia Sub-divisional Hospital for treatment. Reports said that some of those injured were in critical condition.

Authorities have not yet revealed the exact cause of the fire. An investigation is expected to determine what triggered the blaze at the refinery.

Naphtha is a highly flammable fuel derived from crude oil and is commonly used in the production of fuels such as petrol and kerosene.

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