|
|
Deflation a new challenge, says Chief Economic Advisor
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 03 Sep, 2015
Country's economy faces a new challenge
in deflation chief economic advisor Arvind Subramanian said on
Wednesday, after GDP data earlier this week showed lower first quarter
growth.
"One real challenge that looms ahead appears not to be
the price inflation but the possible price deflation," Subramanian told
reporters here.
"Overall, economic growth is moving in the right direction, although its pace is still below what the economy needs," he added.
India's
annual inflation rate based on wholesale prices continued in the
negative territory in June, falling to (-)2.4 percent from (-)2.36
percent in May, provoking India Inc. to call in unison for a Reserve
Bank rate cut.
The annual rate of inflation, as per the official
wholesale price index, stood at 5.66 percent in the corresponding month
of the previous year, according to data released by the commerce and
industry ministry.
Regarding the below-than-expected first
quarter growth figures released earlier this week, Subramanian said the
GDP numbers suggest that the "economy is recovering" and is consistent
with the other more high-frequency indicators such as revenue collection
and real credit growth.
The Indian economy grew 7 percent in
the first quarter of this fiscal, showing signs of slowing vis-a-vis
the 7.5 percent expansion in the quarter before. But the growth was
much higher than 6.7 percent registered in the first quarter of the last
fiscal.
India's indirect tax revenue in the first four months of
the current fiscal (April-July) rose more than 37 percent to over
Rs.201,000 crore, an official announcement said last month.
The indirect tax collections were at Rs.153,000 crore during the same period of the last fiscal.
Month on month, the July indirect tax collections grew by 39.1 percent over that recorded in the same period a year ago.
"Indirect
tax revenue collections have increased from Rs.40,802 crore in July
2014 to Rs.56,739 crore during July 2015," a finance ministry statement
said.
"Thus an increase of 39.1 percent has been registered
during July 2015 over the corresponding period in the previous year,"
it added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|