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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coastaldigest.com web desk
June 27,2020

New Delhi, June 27: The Prime Minister Narendra Modi-led union government of India is not ready to stop all imports from aggressive China in spite of mount calls to boycott Chinese products in India.

The Centre is reportedly considering to stop only non-essential imports from the neighbouring country.

However, the Inward shipment in sectors such as automobiles, pharmaceuticals, certain electronics and others will continue until a domestic alternative is found.

“India will gradually move towards import substitution. It will not happen overnight. In the meantime, attention has to be paid on production and job creation. We cannot throttle our industry. There are certain absolutely essential imports. Needless to say, those will keep going,” official sources said.

Sources said that both the government and the industry are in the process of identifying products that can be domestically manufactured in the medium term. There are certain chemicals, automotive components, handicrafts, cosmetics, agriculture items and certain consumer electronics, which can be manufactured domestically in the short to medium term. The government is doing all it can to raise the capacity of domestic industries.

However, there are certain other imports in the automobile and the pharmaceutical sectors which cannot be done away within the short to medium term. Their domestic production at the moment may not be that cost-effective.

The six-crore strong traders’ body CAIT has been at the forefront of such a demand and has launched a campaign to celebrate Indian Diwali this year with a total absence of Chinese goods.

“Ease of doing business, capital availability at lower rates and globally competitive logistics and energy costs are some of the prerequisites that the government should look into to ensure the growth of the domestic auto component industry,” according to Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta.

Maruti Suzuki Chairman R C Bhargava said, “People who are boycotting Chinese goods have to remember that in some cases it may lead to their being asked to pay more for the same product."

Meanwhile, domestic rating agency Acuite Ratings & Research has analysed the current import portfolio from China and found 40 sub-sectors have the potential to lower their import dependency on China. These sectors contribute to $33.6 billion worth of imports from China and about 25% of these imports can be substituted by local manufacturing without any significant additional investments.

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News Network
March 5,2020

Mar 5: The fourteen Italians, who have tested positive for coronavirus, have been shifted to the Medanta Hospital in Gurgaon from an ITBP quarantine centre.

The hospital issued a statement on Thursday morning, saying these patients are housed on a completely separate floor, which has been quarantined and has no contact with the rest of the hospital.

There is a dedicated medical team wearing protective gear looking after these patients.All items used on the floor are isolated to that floor.

The isolated floor will completely contain the disease even with these asymptomatic persons. All other hospital operations are operating as normal, and there is no increased risk to patients, visitors or staff, the statement said.

Twenty-one Italian tourists and their three Indian tour operators were shifted out from an ITBP quarantine centre here on Wednesday as they were exposed to novel coronavirus.

An affected Italian couple is being treated at Jaipur's SMS medical college.

Officials on Tuesday said the foreigners have been sent to a private hospital in Gurgaon and a centre in the national capital while the Indians have been transferred to the Safdarjung Hospital.

Fourteen Italians and an Indian (driver), who were in the same group as the affected Italian couple, tested positive for the virus as per information provided by the Health Ministry.

The Italian tourists and three Indians were admitted to the Indo-Tibetan Border Police (ITBP) force centre in Chhawla on Tuesday.

The Centre already has 112 people, 76 Indians and 36 foreigners, since February 27 after they were evacuated by an Indian Air Force (IAF) plane from China's Wuhan, the epicentre of the deadly coronavirus.

The first samples of these 112 people had tested negative when reports came in last week.

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Agencies
January 5,2020

New Delhi, Jan 5: Senior Congress leader P Chidambaram on Sunday sàid it was "shameful" that Sadaf Jafar, SR Darapuri and Pavan Rao were arrested by the Uttar Pradesh Police for violence without any evidence against them.

He also said that it was a shocking admission by the police that there is no evidence of their involvement.

"Sadaf Jafar, S R Darapuri and Pavan Rao Ambedkar released on bail after police ADMITTED no evidence of their involvement in violence. Shocking admission," he said on Twitter.

"If that were so, why did the police arrest them in the first place? And how did the Magistrate remand them to custody without looking at the evidence," he asked.
"The law says 'find evidence, then arrest'. The reality is 'first arrest, then search for evidence'. Shameful," Chidambaram tweeted.

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