Parliament

Inflationary Tensions Expected to Linger in Upcoming Months, Caution Urged by Finance Ministry.

The finance ministry has issued a cautionary note, indicating that the persistent pressures of inflation might endure for the following months, necessitating heightened vigilance from both the Reserve Bank of India (RBI) and the government.

As the economy progresses, internal consumption and investment demand are projected to retain their roles as growth drivers. However, the interplay of global uncertainties and domestic disruptions casts a shadow over the inflation outlook in the coming months. The finance ministry’s Monthly Economy Review report for July, unveiled on August 22, underscores the importance of enhanced watchfulness from both the government and the RBI.

These comments from the financial realm follow closely in the wake of recent data revealing a surprising surge in vegetable prices, propelling India’s headline retail inflation to a 15-month peak of 7.44 percent in July, compared to 4.87 percent just a month earlier. This unanticipated uptick in Consumer Price Index (CPI) inflation compelled swift action from the government to curb the ascent of essential food prices. Notably, a 40 percent export duty on onions was introduced on August 19 to discourage exports and guarantee a sufficient domestic supply.

Experts foresee CPI inflation to hover above the 7 percent mark in August, although there are some indications of easing prices. The government has even initiated the sale of tomatoes at reduced prices in major consumption centres. Nevertheless, the expectation is for inflation to decline markedly in anticipation of the festive season, with some economists predicting a sub-5 percent rate by October.

Yet, prior to this projected decline, price hikes are predicted to exceed previous forecasts. On August 10, despite the Monetary Policy Committee (MPC) maintaining the policy repo rate at 6.5 percent for the third consecutive meeting, the RBI elevated its inflation projection for July-September by a substantial 100 basis points to 6.2 percent.

However, the inflation forecast adjustment proved to be outdated in light of the July inflation figures released on August 14. An article penned by RBI staff on August 17 indicated that inflation was now expected to average “well above 6 percent” in the July-September period.

The finance ministry’s monthly report added a hopeful perspective on the situation, stating that the recent price surges in specific food items were likely to be transient. It anticipates a decline in tomato prices with the influx of fresh stocks by the close of August or early September. Additionally, augmented imports of tur dal are foreseen to temper the inflation in pulses. These factors, along with the ongoing efforts of the government, are poised to usher in moderation in food inflation in the months ahead.

The finance ministry also emphasized the need to monitor the external sector to bolster India’s merchandise exports in the face of subdued global demand. Although services exports are projected to continue thriving, geopolitical and geo-economic concerns are anticipated to persist, underlining the importance of maintaining macroeconomic stability. This stability is essential to prevent excessive increases in interest rates, reinforce India’s appeal as a domain of performance and promise for both domestic and international investors, and sustain a steady trajectory of economic growth.

New Delhi: Quelling the fervor surrounding the notion of BRICS nations adopting a shared currency, Foreign Secretary Vinay Mohan Kwatra has cast doubts on the feasibility of such a move. During an exclusive media briefing, Kwatra steered the discourse away from a united currency and emphasized BRICS’ emphasis on bolstering trade using individual national currencies.

Kwatra expounded, “The substantive facet of our trade and economic dialogues within BRICS has predominantly centered on amplifying trade conducted in our respective sovereign currencies. This approach diverges significantly from the intricacies associated with contemplating a shared currency.”

The notion of a common currency within BRICS has ignited fervent discussions, with influential figures like Brazilian President Lula da Silva and Russian Foreign Minister Sergey Lavrov rallying behind the concept. Some view this prospect as a potential contender to the dominance of the US dollar in global trade.

President Lula da Silva advocated for the idea during an address in April, stating, “I wholeheartedly support the creation of an intra-BRICS trade currency, akin to the euro crafted by the Europeans.”

Russian Foreign Minister Sergey Lavrov echoed this sentiment in January, asserting, “Responsible and self-respecting nations recognize the stakes involved and perceive the shortcomings of the current international monetary and financial architecture. They aspire to forge their own mechanisms that ensure sustainable growth, insulated from external dictates.” Lavrov went on to elaborate on the possibility of establishing a currency framework within the confines of BRICS.

However, India has exhibited a cautious stance on this matter in the public arena. External Affairs Minister S Jaishankar declared that the topic of a unified BRICS currency has not even grazed the surface of their discussions. Kwatra’s statements now seem to reaffirm the consortium’s commitment to intensifying trade interactions conducted through separate national currencies.

Honorable Prime Minister Shri Narendra Modi, in his address to the nation on the 77th Independence Day on August 15, 2023, highlighted India’s strengths of demography, democracy, and diversity, which he referred to as the “Triveni” capable of fulfilling the nation’s dreams. He emphasized that the ongoing first year of the Amrit Kaal provides an opportunity for India to dedicate efforts towards shaping the next 1000 years.

PM Modi emphasized that India’s progress is not confined to major cities like Delhi, Mumbai, and Chennai, but extends to tier-2 cities where the youth are equally contributing to the nation’s advancement. He assured the youth that ample opportunities exist for them to succeed, and the country is ready to provide as many opportunities as they require. Addressing recent disturbances in the North East, particularly in Manipur, the Prime Minister expressed solidarity with the state and highlighted efforts towards restoring peace through dialogue. He conveyed that both the central and state governments are working diligently to find a peaceful solution to the challenges faced in Manipur.

PM Modi commemorated those who contributed to India’s struggle for freedom, and he noted that the country is celebrating the 150th birth anniversary of revolutionary leader Sri Aurobindo, along with other significant milestones like Swami Dayanand Saraswati’s 150th birth anniversary, Rani Durgavati’s 500th birth anniversary, and Meerabai’s 525th anniversary in the same year.The Prime Minister highlighted India’s current rise and development, stating that the nation’s progress is evident through global recognition and increased confidence in the country. He stated that India’s capabilities and potential are instrumental in shaping the evolving global order, especially following the COVID-19 pandemic, where India’s resilience and innovation are being acknowledged by experts and rating agencies worldwide.PM Modi emphasized the importance of holistic healthcare, acknowledging the significance of Yoga and Ayush on a global scale. He spoke about India’s role in the technology-driven world and various sectors such as renewable energy, space exploration, and advanced technologies.

The Prime Minister lauded the nation’s achievements under his leadership, mentioning India’s economic growth from the 10th to the 5th position globally. He highlighted steps taken to combat corruption and promote economic stability.PM Modi announced the upcoming launch of the Vishwakarma scheme aimed at supporting individuals with traditional skills, with an allocated budget of 13,000 to 15,000 crore rupees. Additionally, he mentioned plans to increase the number of Jan Aushadhi Kendras from 10,000 to 25,000. Acknowledging the contributions of various segments of society, including women, farmers, labourer’s, and workers, the Prime Minister outlined the challenges posed by the ongoing pandemic and inflation crisis, and the measures taken to address them.

PM Modi stressed the importance of collective responsibility in promoting probity, transparency, and impartiality to achieve India’s development goals, while also condemning corruption, nepotism, and appeasement as detrimental factors. He highlighted India’s global philosophies such as “One Sun, One World, One Grid” for renewable energy and advocated for global cooperation and unity, especially through India’s assistance during the pandemic.

Looking ahead to India’s 100th Independence Day in 2047, PM Modi expressed his aspiration for a developed India, urging the nation to collectively work towards achieving this goal. He emphasized that national character and integrity are integral to the country’s progress and development. The Prime Minister commended India’s armed forces for their preparedness and efforts in ensuring national security. He concluded his address with a vision of a united and prosperous India, encouraging citizens to continue the legacy of freedom fighters by contributing to the nation’s growth.

As a part of the 77th Independence Day celebrations, around 1,800 special guests, including nurses farmers and fishermen, and 75 couples in traditional attire have been invited at Red Fort in Delhi.

Honourable Prime Minister Narendra Modi will lead the country in celebrating the 77th Independence Day from the iconic Red Fort in Delhi on Tuesday. As part of the celebrations, around 1,800 people from different vocations, with their spouses, were invited as special guests.

All These special guests include over 400 Sarpanches of more than 660 villages; 250 from Farmer Producer Organisations’ scheme; 50 participants each of Pradhan Mantri Kisan Samman Nidhi Scheme and Pradhan Mantri Kaushal Vikas Yojana; 50 Shram Yogis (construction workers) of the Central Vista Project, including the new Parliament building; 50 each Khadi workers, those involved in construction of border roads, making of Amrit Sarovar and Har Ghar Jal Yojana as well as 50 each primary school teachers, nurses and fishermen.

Some of these special guests are scheduled to visit the National War Memorial and call on Minister of State for Defence Ajay Bhatt as part of their stay in Delhi. The initiative has been taken in line with the Government’s vision of Jan Bhagidari, a release from the Ministry of Defence said.

As many as 75 couples from each state/Union Territory (UT), in their traditional attire, have also been invited to witness the ceremony at Red Fort. During the celebrations, PM Modi will unfurl the national flag and deliver the customary address to the nation from the ramparts of the historic monument.

Selfie points dedicated to different schemes and initiatives of the government have been installed at 12 locations, including National War Memorial, India Gate, Vijay Chowk, New Delhi Railway Station, Pragati Maidan, Raj Ghat, Jama Masjid Metro Station, Rajiv Chowk Metro Station, Delhi Gate Metro Station, ITO Metro Gate, Naubat Khana and Sheesh Ganj Gurdwara.

The schemes/initiatives include Global Hope: Vaccine and Yoga; Ujjwala Yojana; Space Power; Digital India; Skill India; Start-up India; Swachh Bharat; Sashakt Bharat, Naya Bharat; Powering India; Pradhan Mantri Awas Yojana and Jal Jeevan Mission, the release said.

As part of the celebrations, an online selfie contest will be led by the Ministry of Defence on the MyGov portal from August 15 to 20. People are encouraged to take selfies at one or more of the 12 installations and upload them on the MyGov platform to take part in the contest.

Twelve winners, one from each installation, will be nominated on the basis of the online selfie contest. The winners would be given prize money worth of Rs 10,000 each, the statement further stated.

The Prime Minister, Shri Narendra Modi spoke about the G20 Anti-Corruption Ministerial Meet held in Kolkata through video message.

Addressing the gathering, the Prime Minister welcomed notables to the city of Nobel Laureate Gurudev Rabindranath Tagore, Kolkata and stated that this is the first-ever G20 Anti-Corruption Ministerial Meet taking place physically. Referring to the writings of Tagore, the Prime Minister cautioned against greed as it prevents us from realizing the truth. He also touched upon the ancient Indian Upanishads that strive for ‘Ma Gridha’, which translates to ‘let there be no greed’.

The Prime Minister highlighted that the maximum impact of corruption is borne by the poor and the banished. He further added that it affects resource utilization, distorts markets, impacts service delivery and ultimately diminishes people’s quality of life. Referring to Kautilya in the Arthashastra, the Prime Minister said that it is the government’s duty to enhance the State’s resources to maximize the welfare of its people. He emphasized the need to fight corruption to achieve this goal and said that it is the sacred duty of the government towards its people. 

“India has a strict policy of Zero Tolerance against corruption”, the Prime Minister remarked as he accentuated that India is leveraging technology and e-governance to create a transparent and accountable ecosystem. He mentioned that leakages and gaps in welfare schemes and government projects are being plugged in. As a result, the Prime Minister said, hundreds of million people in India have received direct benefit transfers into their bank accounts amounting to more than 360 billion dollars and helping save over 33 billion dollars. The Prime Minister informed that the government has simplified various procedures for businesses and gave the example of automation and digitization of government services that have eliminated rent-seeking opportunities. “Our Government e-Marketplace, or GEM portal, has brought greater transparency in government procurement”, he added. Speaking about the enactment of the Economic Offenders Act in 2018, the Prime Minister said that the government is aggressively pursuing economic offenders and informed about the recovery of assets worth over 1.8 billion dollars from economic offenders and fugitives. He also mentioned the Prevention of Money Laundering Act which has helped attach the assets of offenders worth more than 12 billion dollars since 2014.

The Prime Minister recalled speaking on the challenges of fugitive economic offenders for all G20 countries and the Global South in his very first G-20 Summit in 2014. He also mentioned presenting a nine-point agenda for action against Fugitive Economic Offenders and Asset Recovery at the G-20 Summit in 2018 and expressed happiness that decisive steps are being taken by the working group. The Prime Minister welcomed the action-oriented High-Level Principles on three priority areas, namely, law enforcement cooperation through information sharing, strengthening asset recovery mechanisms, and enhancing the integrity and effectiveness of anti-corruption authorities. He expressed delight that an understanding has been reached on informal cooperation between law enforcement agencies which will prevent criminals from exploiting legal loopholes when crossing borders. Highlighting the importance of timely asset tracing and identification of proceeds of crime, the Prime Minister stressed the need to encourage countries to enhance their domestic asset recovery mechanisms. Shri Modi suggested that G20 countries can set an example by using non-conviction-based confiscations to expedite the recovery of foreign assets and said that it will ensure swift return and extradition of criminals after the due judicial process. “It will send a strong signal about our joint fight against corruption”, he emphasized.

The Prime Minister asserted that the collective efforts of G20 nations can significantly support the fight against corruption and a huge difference can be made through enhanced international cooperation and implementation of robust measures that address the root causes of corruption. Shri Modi also highlighted the role of audit institutions in the fight against corruption. Concluding the address, the Prime Minister urged the dignitaries to foster a culture of ethics and integrity in the value systems along with strengthening our administrative and legal systems. “Only by doing so, can we lay the foundation for a just and sustainable society? I wish you all a productive and successful meeting”, the PM concluded.