Sitharaman

Prices Of Perishable Items Within Tolerance Band: Sitharaman

Union Finance Minister Nirmala Sitharaman on Tuesday said prices of perishable items have come down and are well within the tolerance band.

To a query raised by AIADMK’s M Thambi Durai on the rise in retail inflation, during the Question Hour in Rajya Sabha today, she detailed the interventions made by her government to keep in check the price rise.

“The prices have started coming down and are well within the tolerance band. Lots of steps have been taken by the government, particularly for meeting the shortage in supply of perishables,” Sitharaman said.

Retail inflation in India, though, is in the RBI’s 2-6 per cent comfort level but is above the ideal 4 per cent scenario. In December, the retail inflation was 5.69 per cent.

India does not grow enough pulses to meet its annual demand, and much of it is met through imports.

“We don’t grow enough of pulses in this country. So pulse prices are (high) normally due to a shortfall in supply. in anticipation, depending upon the crop estimates, we tie up for imports,” the finance minister said.

India imports tur dal from Mozambique, Myanmar, Tanzania, Sudan, and Malawi, and to a lesser extent from Kenya, and Nigeria.

Sitharaman apprised the Upper House that importers have shipped in about 8.79 lakh tonne tur dal in 2023. For Masur, the imports were at 15.14 LMT in the last calendar year.

As part of the government’s initiative to give respite to its citizens, subsidized chana is available at Rs 60 per kg for a 1 kg pack, and at Rs 55 per kg for a 30 kg pack.

Till January 2024, about 2.97 lakh tonnes of chana have been sold at subsidized rates.

“This Bharat Dal that is coming out at a concessional price is available on ONDC, Blinkit, Jio Mart, and all other big retail outlets. Such steps are also being for tomatoes and others as well,” Sitharaman said.

Onion, another perishable, is also being offloaded in the market at a subsidized rate of Rs 25. Faced with rising onion prices, the central government has been releasing the staple vegetable from its buffer stock.

Buffer stock is maintained to meet any exigencies and for price stabilisation if rates go up significantly during the lean supply season.

Export restrictions were also imposed on the staple vegetable.

“We have curtailed their exports so that their prices can be kept within a reasonable limit,” Sitharaman said.

India has prohibited the export of onions till March 2024. The export of onions will be, however, allowed on the basis of permission granted by the central government to other countries based on the request made by the countries. (ANI)

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Tourism Infrastructure To Be Taken On Indian Islands: Sitharaman

Tourism Infrastructure To Be Taken On Indian Islands: Sitharaman

Putting a thrust on boosting domestic tourism, Union Finance Minister Nirmala Sitharaman on Thursday said that the tourism infrastructure and amenities will be taken up on our islands, including Lakshadweep.

The Union Finance Minister, while presenting the Interim Budget 2024 also stated that the success of organizing G20 meetings in sixty places presented a diversity of India to a global audience.

“To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also,” Sitharaman said.

Recently, a campaign to promote Lakshadweep and other unexplored islands of the country started after PM Modi in the first week of January, visited Lakshadweep and shared a couple of pictures, showing the “stunning beauty of its islands”. From “early morning walks” to trying snorkelling, the Indian prime minister said his visit to the islands was “an enriching journey of learning and growing”.

The Administrator of Union Territories of Dadra and Nagar Haveli said, “I am confident that this will develop the culture of beach games, promote the sports talents of the union territory and increase the tourism potential of the union territory. The event will attract locals and tourists alike.”

Besides this, during her speech, Sitharaman said that states will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at a global scale.

She further added that long-term interest-free loans will be provided to states for financing such development on a matching basis.

In order to promote comprehensive development of the centres, the Union Minister said that a framework for rating of the centres based on quality of facilities and services will be established.

Noting the success of G20 last year, the Union Finance Minister in her Budget speech said that the success of organizing G20 meetings in sixty places presented a diversity of India to a global audience.

“The success of organizing G20 meetings in sixty places presented diversity of India to global audience. Our economic strength has made the country an attractive destination for business and conference tourism. Our middle class also now aspires to travel and explore. Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship,” she said.

Further, in relief to the citizens, the central government neither tweaked nor raised the tax burden on citizens.

“As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” said Sitharaman.

The Finance Minister concluded her budget presentation with a positive outlook, signalling the government’s determination to continue fostering inclusive growth and development.

The Interim Budget 2024 is expected to undergo thorough scrutiny and debates in the coming days in the Parliament, as stakeholders assess its potential impact on the nation’s economic trajectory. (ANI)

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Nirmala on Obama's Advice

‘Six Muslim-Dominated Nations Were Bombed…’ Sitharaman Tears Down Obama’s Advice

Union Finance Minister Nirmala Sitharaman, on Saturday, lashed out at former US President Barack Obama for his comments on Indian Muslims and said that under his reign, the United States had bombed six Muslim-dominated countries.

While addressing a press conference in Delhi, Nirmala Sitharaman said, “It was surprising that when the PM was visiting the US and telling people about India, a former US President (Barack Obama) was making a statement on Indian Muslims…I am speaking with caution, we want a good friendship with the US, but they comment on India’s religious tolerance. Perhaps 6 Muslim-dominated countries were bombed due to him (Obama)… More than 26,000 bombs were dropped.”
This comment came after US former President Barack Obama, during a media interview, said if ethnic minorities are not protected, there is a strong possibility of the country “at some point starts pulling apart”.

Obama’s made the remarks during an interview with CNN’s Christiane Amanpour and said if President Joe Biden meets with PM Modi, “the protection of the Muslim minority in a majority Hindu India is something worth mentioning”.

Meanwhile, at the conference, the union minister defended PM Modi from questions surrounding the treatment being meted out to the Muslims in India and pointed out that out of 13 honors, that the Prime Minister received from different countries, six awards were from such nations where Muslims are in the majority.

“Honorable prime minister himself during the press conference in US has said how his government works on ‘Sabka Sath Sabka Vikas’ principle and doesn’t discriminate against any community whatsoever but the fact remains that repeatedly when people join in in this debate and highlight issues which are non-issues in a way because if there are issues in states which are to be raised they are being raised at the state level,” Sitharaman said at the press conference.

Further, she added, “Law and Order is the State subject that people are taking care of it and elected governments are there in each of the states which respond to it. To just allege without basic data in hand just tells us that these are organized campaigns which purposely are being leveled at the doorstep of the Prime Minister otherwise why would countries give such an honor to the prime minister and why would there be a distortion in understanding how India and its minority population irrespective of which religion they belong to minority population are being part of the Indian mainstream.”

Slamming the opposition, she said that as Congress couldn’t see the possibility of winning the election, they have started such kind of campaign.

The minister further slammed Congress and stated that such campaigns are being flaoted into the ecosyatem as Congress is aware that they are incapable of wining the 2024 general electionas.

“Congress is doing more this time than last two elections. Karnataka’s talk was different but such toolkits which run in foreign countries, they are working against Prime Minister because they (Congress) are sure that the public will not support them. (ANI)

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No Impact On India Due To FPO Pullout: Sitharaman On Adani Stock

No Impact On India Due To FPO Pullout: Sitharaman On Adani Stock

Union Finance Minister Nirmala Sitharaman on Saturday said that regulators independent of the government will do their jobs and that a pullout of FPO pullout will not have any impact on the perception of India.

“Regulators are independent of the government and they are left to themselves to do what is appropriate so the market is well regulated,” the Finance Minister said while addressing a post-Budget 2023-24 conference in Mumbai on Saturday.
“This is not the first time that some FPO (follow-on public offering) is taken back. How many times that has affected the image of the country?”

On Wednesday, Adani Enterprises decided not to go-ahead with its fully subscribed Follow-on Public Offer (FPO), with the Group chairman Gautam Adani stating on Thursday that it would not be “morally correct” to go ahead with the Rs 20,000-crore share in the current market condition. A report by the New York-based short seller had on January 24, accused Adani Group of brazen stock manipulation and accounting fraud among others.

The US-based firm, in its report, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. In response, Adani Group said Hindenburg’s report was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions. It added the report was “nothing but a lie”.

In its rebuttal Hinderburg Adani has “stoked a nationalist narrative” that seeks to conflate the “meteoric rise and the wealth of its chairman, Gautam Adani, with the success of India itself.”

In today’s press conference in Mumbai addressing a query about Life Insurance Corporation of India (LIC)’s exposure to the Adani Group, the Union minister said, “LIC have themselves come on the issue about their exposure to the Company (Adani).”

The Finance Minister said the government wants to sustain the recovery which had kept India at a good level of growth.

“We want to sustain the recovery which had kept India at a good level of growth, which no country – except for one because it’s fuel rich – has managed to reach,” she said.

Sitharaman added, “…and the credit goes to the people of India to somehow absorbing all the little help the government has come up with, either in the form of relief or a policy between 2022 and today.” She added that this recovery momentum should not be lost.

The minister added, “It was an expressed desire of the Prime Minister that capital expenditure should be kept up and that is why it has reached Rs 10 lakh crore.”

On the purpose of her visit to the financial capital, the Union finance minister said that Prime Minister Narendra Modi had highlighted that it would serve well if the finance ministry goes all over the country and explain what is the idea behind the Budget.

“For the past three to four years we have started a process that we go to places post-budget and discuss the budget with stakeholders. Take their suggestions etc and include those suggestions into the amendments of the Budget. This was the first such outreach in Mumbai after this Budget,” the finance minister said. (ANI)

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Nirmala Sitharaman

Sitharaman To Brief BJP MPs On Budget 2023 Tomorrow

Union Finance Minister, Nirmala Sitharaman who presented the Narendra Modi government’s last full budget ahead of the 2024 Lok Sabha elections, will hold a briefing for the BJP MPs both of Lok Sabha and Rajya Sabha on Friday, sources said.

She will explain the budget to the MPs in the meeting.
The briefing will be held at 9 am at the Balayogi Auditorium in Parliament Library Building in the national capital, all MPs have been informed.

This briefing comes at a time when the party has asked all its members of Parliament to go to the respective constituencies and tell the common man what does budget means and how it has been brought out, keeping the interest of every stratum of society in mind.

Meanwhile, Sitharaman yesterday announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh stating that the new tax regime will now be the default tax regime.

The Finance Minister also proposed to change the tax structure in this regime by reducing the number of tax slabs to 5 and increasing the tax exemption limit to Rs 3 lakh.

The government proposed to increase capital expenditure outlay by 33 per cent to Rs 10 lakh crore in 2023-24, which would be 3.3 per cent of the GDP, Union Finance Minister Nirmala Sitharaman said on Wednesday.

Further, the government proposed to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, Sitharaman said. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years.

Presenting the Union Budget 2023, Union Finance Minister Nirmala Sitharaman on Wednesday pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP).

The Finance Minister further said that the government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26. (ANI)

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Bill On Data Privacy Will Be Ready Soon: Sitharaman

Union finance minister Nirmala Sitharaman on Wednesday assured that the new bill on data privacy will be ready “soon” and the Information Technology minister has been diligently working on it.

Ashwini Vaishnaw is the Union minister for information and technology.
“We will soon have a new Data Privacy Bill, which will be a product of consultations and will address every such concern most of us had on the privacy Bill,” she said.

Sitharaman made the remarks here today while addressing the ongoing India Ideas Summit organised by US-India Business Council.

The central government last month withdrew the Personal Data Protection Bill 2019 from the Lok Sabha several months after it was introduced.

Minister for Railways, Communications, Electronics & Information Technology Ashwini Vaishnaw had said the Bill was withdrawn because the Joint Parliamentary Committee recommended 81 amendments in a bill of 99 sections.

“Above that it made 12 major recommendations. Therefore, the bill has been withdrawn and a new bill will be presented for public consultation,” he had then tweeted.

Further, in her address to the US-India Business Council, she said jobs, equitable wealth distribution and ensuring that India is still on the path of growth are some of her top red-letter priorities.

However, according to her, inflation is not as it was brought down to “some manageable levels”.

To put things into context, India’s retail inflation fell to 6.71 per cent in July, the lowest level in five months, helped by an easing in food and oil prices, as per the National Statistical Office (NSO) data, it has been over the Reserve Bank of India’s upper tolerance band of 6 per cent for the seventh consecutive month in a row.

The previous month – June, the retail inflation was at 7.01 per cent in June. Inflation figures for August are expected early next week. (ANI)

How India Fares On Economic Indicators

Given even half a chance, politicians of all hues will indulge in breast beating. The country was witness to this once again when in the course of 2022-23 budget presentation finance minister Nirmala Sitharaman claimed India’s expected GDP (gross domestic product) growth of 9.2 per cent during 2021-22 would be highest among all large economies. This “sharp recovery and rebound of the economy is reflective of our country’s strong resilience.” In the meantime, however, the Manila headquartered Asian Development Bank in its recently released ‘Asian Development Outlook 2022’ report says India’s GDP last year ‘likely’ grew 8.9 per cent. Mark the word likely in ADB’s calculation.

Whatever 2021-22 growth is finally recorded, Sitharaman could always say in her defence that she presented the budget two months before the closure of financial year and she was only referring to advance estimates. A Trinamool Congress MP was certainly not fair in saying the FM was speaking with ‘fork tongued’ in making such a tall claim for the economy under her charge. No doubt she was boastful, for last year’s growth should ideally be seen against the background of GDP slipping 6.6 per cent in 2020-21. And the 2019-20 GDP growth was a dispiriting 3.7 per cent, very closely approximating the Hindu rate of growth coined by economist Raj Krishna.

The whole of 2019-20 when the bite of Covid-19 pandemic manifested in a series of deadly infections, lockdowns, supply chain disruptions and large-scale migration of labourers to their villages and small towns suffering in the process unbearable hardships was a washout for all economies and India was not an exception. Even while fears of new Covid waves remained throughout the year that closed in March 2021, any relief on that count was negated by high rates of inflation.

Retail inflation, as measured by consumer price index combined (CPI-C) was 6.6 per cent during 2020-21, breaching the Laxman Rekha or threshold level of 6 per cent. But with the revival of economic activities in the post Covid 2021, high inflation became a global phenomenon. For example, among developed countries, the US experienced inflation of 7 per cent in December 2021, the highest since 1982 and in the emerging economic bloc, Brazil suffered price rise of 10.1 per cent in the same month. Expectedly inflation at the rate of 6.6per cent became a source of major popular discontent leading New Delhi to take supply side measures and that tamed it to 5.2 per cent in 2020-21 till December.

But any comfort on inflation front unfortunately for the government and the masses proved short lived. Energy prices were already high when President Vladimir Putin sent his troops to Ukraine in an act of aggression on February 24. That sent oil and gas prices through the roof. As oil and gas and aviation turbine fuel invite very excise duty and also stiff levies at the state level, the two commodities not being covered by GST (goods and services tax), their prices are now greatly stoking inflation. Look at prevailing domestic LPG prices from PPP (purchasing power parity) dollar angle, truly reflecting the local currency’s purchasing power and the income level of average Indian, these are the highest in the world. As for petrol, we pay the third highest price only after Sudan and Laos. Indian oil marketing companies have started buying Russian crude at discounted rates.

As is to be expected, Indian buying of Russian crude has not gone down well with Western nations sanctioning the aggressor country on a growing number of counts. For example, the US has banned all energy supplies from Russia and the UK is working on phasing out oil and coal of that origin by yearend. Whatever sins Russia may be committing, India has deep political and economic ties with that country and the world is aware of that. India has served notice that it will continue to buy crude oil from Russia to protect its own economy.

In any case, fuel prices continuing to rise to new record levels are having an inevitable domino effect with food, edible oils and stationery prices getting revised periodically in sync. A survey conducted by the leading Bengali daily Anandabazar Patrika of families in the monthly income bracket of ₹15,000 to ₹45,000 about how they are coping with the sudden major spurt in inflation found one common answer that even after doing with less of every single item of food and other daily necessities, their savings are going for a toss. Some have lost the capacity to save. Others have started using up what they saved in the past. Experiences of families with identical income or even a little more in other parts of the country are either faring the same or even worse. If this is the condition of people with a regular income, whatever is the size, then think how badly the ones who lost their jobs during the Covid and never got them back or whose deep salary cuts are still to be restored are doing.  

ALSO READ: Modi Must Focus On Growth & Healthcare

Mercifully, the unemployment rate, according to the Centre for Monitoring Indian Economy (CMIE), has started declining with economic activities slowly gathering steam. CMIE’s monthly time series data shows unemployment rate was down to 7.6 per cent in March from 8.10 per cent in February. Economist Abhirup Sarkar, however, makes the pertinent observation that even “this unemployment rate is high for India which is a poor country. Poor people, particularly in rural areas cannot afford to remain unemployed, for which they are taking up any job that comes their way.”

Even while the overall national unemployment rate continues to fall, the ranks of unemployed in some states remain worryingly high ranging from 14.4 per cent for Bihar to 26.7 per cent for Haryana. The accepted fact remains inflation has a negative impact on growth and real per capita income. Inflation is not neutral. In no case does it support growth. That is why on the occasion of release of monetary policy the other day, Reserve Bank of India (RBI) governor Shaktikanta Das said: “In the sequence of priorities we have now put inflation before growth. For the last three years starting February 2019, we had put growth ahead of inflation in the sequence. This time we have revised that because we thought that the time is appropriate and that is something which needs to be done.”

Largely caused by Ukrainian war, the inflation outlook has worsened globally as also for India. RBI has revised upward its inflation forecast for 2022-23 to 5.7 per cent from the earlier 4.5 per cent. If the war persists and sanctions further tightened, raging inflation will not be doused. In fact, inflation here could very well cross the Laxman Rekha as the year progresses. If inflation stays this high what option could be there for RBI but to cut this year’s growth forecast to 7.2 per cent from the earlier 7.8 per cent. Inflation and growth outlook being so fluid, Das’ observation that “we are not hostage to any rulebook and no action is off the table when the need of the hour is to safeguard the economy,” is an important pointer to RBI monetary policy staying flexible.

Commodity prices across the board from oil to steel to aluminium and to copper have all significantly appreciated. This is particularly pinching for the micro, small and medium (MSME) sector, which has a share of around 30 per cent of GDP and provides employment to 111 million. High input prices have pushed up working capital requirements of the sector. Will that incremental financial accommodation be available from banks? Unlike large enterprises, most MSMEs don’t have reserves to fall back upon. New Delhi must see that the MSME sector having a share of close to 50 per cent of total national exports is able to walk through difficult times unscathed.

Industry as a whole has welcomed the government investing heavily in infrastructure projects creating demand for products of a host of industries. The combination of mega capital expenditure programme that hopefully will bring Indian infrastructure close to world class resulting in marked fall in logistical cost and supply side measures is the response expected from the government. Private sector too is not found wanting in announcing major investments and this is led by the steel industry with investment commitment of over ₹1,000 billion in new capacity building.

In the challenging circumstances, Indian farmers well deserve a pat on their back for agriculture and allied industries are expected to have recorded growth of 3.9 per cent in 2021-22 against 3.6 per cent in the previous year. There is no promise that the coming days will bring any relief. One may, however, see a silver lining in the Economic observation: “Despite all the disruptions caused by the global pandemic, India’s balance of payments remained in surplus throughout the last two years. This allowed the Reserve Bank of India to keep accumulating foreign exchange reserves (they stood at US$634 billion on 31st December 2021). This is equivalent to 13.2 months of merchandise imports and is higher than the country’s external debt. The combination of high foreign exchange reserves, sustained foreign direct investment, and rising export earnings will provide an adequate buffer against possible global liquidity tapering in 2022-23.”

Union Budget 2021-22

Watch – ‘Health, Defence Important; What About Inflation?’

Common people have given a mixed response to Union Budget 2021-22. While some feel that there is little effort to hold back rising prices in Budget, there are others who feel the financial document has kept its focus on two biggest challenges before the country: outside threat on border and inside dangers of pandemic.

Although relief to senior citizens is appreciated, rise in petrol price has been a big concern as it will only lead to overall increase in commodity prices.

Watch the full video here

Union Budget 2021

Watch – ‘Focus On Health & Infra In Budget Laudable’

LokMarg speaks to various financial experts to know what Union Budget 2021 has in store for Indian economy and the common people. While most of them agree that commendable provisions have been made in the financial document with regards to Healthcare, Sanitation and Infrastructure, more relief could have been allotted to businesses who had been affected the most by sustained lockdown amid Covid-19.

Overall, these experts feel the picture will be clearer once the implementation of these budgetary provisions come into effect. But for now, the Centre has shown good intention to pull the economy out of pandemic impact.

Watch the full video here

Satabdi Gantait

‘I Am Thankful To RBI, Govt For Revival Of Yes Bank Ops’

Satabdi Gantait had her salary account and Fixed Deposit in Yes Bank. She recounts the initial panic and the relief after the bank resumed normal operations

I can’t tell you how relieved I am after knowing that Yes Bank is operational again, thanks to timely intervention by the RBI and Centre government. I have my salary account in Yes Bank and when the news of Yes Bank collapse came, about a fortnight ago, many of us didn’t know what to do. I also had Fixed Deposits (FD) in the bank so I was doubly worried as to what fate my savings has in store.

Given that it was the beginning of the month, I was supposed to make payments to several people as well. It was chaos. Thankfully, I had another account in a different bank but it is horrifying to think about those who had all their savings in Yes Bank.

ALSO READ: Yes Bank Debacle And Crony Capitalism

I myself had been following news about the economy and various banks on and off, but in these times when there is so much of information flowing in all the time, one doesn’t know whom to trust and whom not to. Also, many a times one isn’t completely aware of what a particular step from the government means. We are dependent on news channels to decode information for us.

Following the news of Yes Bank collapse, the UPI (an online payment interface) on my phone stopped functioning. I teach interior designing to students in Kolkata and fashion is an industry where large amount of money exchanges take place. So undoubtedly there was panic in our group.

Thankfully, Union Finance Minister Nirmala Sitharaman came out and assured ordinary people depositors that their money was safe. That people didn’t need to panic and that the government was doing all it can to rectify the situation as quickly as possible. This was reassuring but we kept our fingers crossed. I wonder why we need to reach a situation like the Yes Bank one in the first place that ordinary people begin to panic!

ALSO READ: Centre Clears Plan To Salvage Yes Bank

I suffered during demonetisation as well and for a moment (at the beginning of the crisis around 15 days ago) I thought 2016 was going to play itself out once again in 2020.

I run an interior design firm and had to make and receive large amount of money. Both depositing and withdrawing money had become extremely difficult back then. Thankfully this time things are different.  I hope no more banks reach such a state, so that ordinary people don’t worry whether they will be able to withdraw and use their own hard-earned money.