India inflation likely crept up to 6-month high in April

Agencies
May 11, 2019

Bengaluru, May 11: India inflation likely crept up slightly to a six-month high in April, driven mainly by food prices, a Reuters poll found, although holding below the Reserve Bank of India’s medium-term target of 4 percent for the ninth straight month.

If true, that would support expectations for the central bank to keep policy on hold through to the end of next year after cutting interest rates twice in a row, in February and April, ahead of national elections.

The latest Reuters poll of over 40 economists, conducted May 3-9, showed India retail inflation likely rose to 2.97 percent last month from 2.86 percent in March. The data is due May 13.

Forecasts ranged between 2.68 and 3.56 percent, with almost three-quarters pegging it at or below 3 percent.

“In continuation of the previous month’s trend we see further pickup in food prices and moderation in core,” noted economists at Citi.

“While Brent prices had spiked in April – there was little pass through to pump level prices, probably due to ongoing elections.”

Indeed, while inflation is tame now, economists say that rising oil prices will eventually push inflation up and could pose a challenge for whatever government is formed after India’s national election is completed later this month.

Crude oil prices surged last month, driven by a cutback in supply by the Organisation of Petroleum Exporting Countries (OPEC) and sanctions imposed on Iran and Venezuela by the United States.

The expected slight rise in April is likely to come in part from the cost of transporting food, according to Prakash Sakpal, Asia economist at ING, although not everyone agrees.

Fuel costs tend to lag the price of crude, and so economists expect upward pressure in future months in any case.

“I think in the second half (of the year) inflation will start picking up...and then we will see the RBI losing (room) to aggressively ease,” said Vishnu Varathan, an economist at Mizuho.

“Having said that, the growth cycle is such that the RBI could still squeeze through one more rate cut on the premise of further downside risks to growth.”

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Agencies
May 9,2020

New Delhi, May 9: The Supreme Court on Friday agreed to consider a plea raising the issue of mass termination and the illegal salary cut of employees in IT/ITES/BPO/KPI by their employers during the lockdown due to the spread of the coronavirus.

A bench comprising Justices Ashok Bhushan, S.K. Kaul and B.R. Gavai, taking up the matter through video conferencing, agreed to examine the issue and listed it for May 15.

The petition, argued by senior advocate Devadatt Kamat, was filed by National Information Technology Employees Sena (NITES) through advocate-on-record Amit Pai, and sought implementation of directions issued by the Centre on March 29 and similar advisories issued by several other states mandating payment of wages/salaries to the employees and also directed not to terminate them during the period of lockdown.

A directive was issued by the Union Ministry of Labour and Empowerment to all Chief Secretaries of state governments to issue advisories to public and private companies to not lay off employees or implement pay cuts during lockdown.

In the Centre for Monitoring Indian Economy (CMIE) report published on April 19, it was noted that "several companies across the country have started to terminate its employees without any reasonable cause and have started withholding their salaries. It is submitted that in such testing times, the rights of the employees ought to be protected by necessary orders/directions to the companies through the Respondents to effectively implement the lockdown and to contain the spread of the virus", said the plea.

On March 29, the Centre issued an order directing all states and Union Territories to issue orders, requiring all the employers in the industrial sector and shops and commercial establishments to pay wages on the due date without any deduction during their closure due to the lockdown.

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News Network
March 26,2020

New Delhi, Mar 26: The total number of people who have been confirmed positive for COVID-19 in India has risen to 649 in India, including 593 active cases and 42 people who have been cured or discharged from hospitals, according to the recent update by the Union Ministry of Health and Family Welfare (MoHFW) on Thursday morning.
The death toll due to the novel coronavirus in the country has reached 13, the official data reported. There have been 3 more deaths due to COVID-19 reported in the country since last evening.
An 85-year-old woman in Gujarat died yesterday while with the passing away of a 65-year-old woman, Madhya Pradesh reported its first COVID-19 death. Tamil Nadu also reported its first death in the state yesterday due to the deadly infection.
According to report from the Indian Council of Medical Research (ICMR) India had tested 24,254 people as of 8 p.m. on March 25.
The country is now in its second day of a 21-day lockdown that was announced by the Prime Minister Narendra Modi on Tuesday to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.
The central government had on Wednesday announced that it will provide 7 kg ration to 80 crore people in India. The Centre also said that it has earmarked Rs 1.80 lakh crores for providing wheat at Rs 2 per kg and rice at Rs 3 per kg
"Union Cabinet has decided to provide wheat at Rs 2 per kg which is worth Rs 27 per kg and rice at Rs 3 per kg which is worth Rs 37 per kg. A total amount of Rs 1 lakh 80 thousand crores is being spent for the cause. The amount will be given in advance to the states for the coming 3 months," Union Minister Sadananda Gowda said yesterday.
Those shops which are catering to essential services will continue doing so during the 21-day nationwide lockdown.

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News Network
July 19,2020

New Delhi, Jul 19: Blaming the BJP for the political drama in Rajasthan, senior Congress leader Digvijaya Singh on Sunday asked Sachin Pilot not to leave the grand old party.

In an interview to news agency, the former Madhya Pradesh chief minister said Pilot should not follow Jyotiraditya Scindia into the BJP, as he has bright future in Congress.

His remarks follow Pilot's open rebellion against the Ashok Gehlot government, which has been on shaky ground with at least 18 legislators backing the rebel leader.

Pilot was sacked as Rajasthan deputy chief minister and the state Congress chief recently and the Congress has accused the BJP of making efforts to topple the Gehlot-led government by indulging in horse-trading.

"The BJP is behind the crisis in Rajasthan," Singh said.

The Congress veteran said he tried to call Pilot but his calls and text messages went unanswered.

"Age is on your side. Ashok (Gehlot) may have offended you, but all such issues are best resolved amicably. Dont make the mistake that Scindia made. BJP is unreliable. Nobody who joined it from any other party has succeeded there," Singh said.

He said this is the first time that Pilot hasn't responded to him.

"Sachin is like my son. He respects me and I also like him. I called him three-four times and also texted him. He didn't revert. He used to respond immediately earlier," he said.

"It is good to be ambitious. How can one move forward without having ambitions, but along with ambition, one must also have commitment to your organisation, ideology and the nation," Singh said.

For latest updates on the Rajathan Political Crisis, click here

"I heard that he (Pilot) may form a new party. But what is the need for it. Has Congress not given him anything? He was made an MP at 26, a Union minister at 32, the state Congress president at 34 and deputy chief minister at 38. What else does he want? Time is on his side," Singh said.

If Pilot had any issue, then as the state party unit president, he should have called a meeting and discussed the matter, he said. Pilot could have involved Congress national general secretary and Rajasthan in-charge Avinash Pande in talks with Gehlot to resolve differences, he added.

"If you have faith in your legislators, why have you have confined 18-19 of them in ITC Grand hotel at Manesar in Haryana," Singh said.

This is the same hotel where the BJP kept MLAs from Maharashtra, Karnataka and Madhya Pradesh (during political dramas in those states), he said.

Pilot should forget whatever has happened, come back and sit across the table to discuss how Congress could be strengthened, he said

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