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BIG STORY MAY 27, 2022 | The Indian Eye 4

TACKLING CRISIS

INFLATION vs GROWTH

The Narendra Modi government takes a drastic step of reducing oil and diesel prices
as ordinary Indians feel the pain of rising inflation.
What else can the government to avoid a full-blown crisis?

OUR BUREAU
New Delhi/Mumbai
n a sign of a looming crisis, the
wholesale inflation in India surged
Ito 15.08 per cent in April from
14.55 per cent in the previous month
due to a sharp jump in the prices of
fuel, metal, food and non-food arti-
cles and chemical products.
The Wholesale Price Index
(WPI) based inflation has been in the
double-digit for the 13 months in a
row. The WPI-based inflation stood
at 10.74 per cent in April 2021. The
high rate of inflation in April 2022
was primarily due to a rise in prices of
mineral oils, basic metals, crude pe-
troleum & natural gas, food articles,
non-food articles, food products and
chemicals & chemical products, etc.
as compared to the corresponding
month of the previous year, the Min-
istry of Commerce & Industry said in An attendant refills a two-wheeler with petrol as the government reduces central excise duty on petrol and diesel on Sunday (ANI)
a statement.
The rate of inflation based on er announcements aimed at curbing per gas cylinder (up to 12 cylinders) to remained lower than during previous
WPI Food Index increased marginal- inflation said subsidy will be provided over nine crore beneficiaries of Prad- governments,” she said.
ly from 8.71 per cent in March, 2022 on cylinders under Ujjwala scheme. han Mantri Ujjwala Yojana. The Minister said that notifica-
to 8.88 per cent in April, 2022. The She urged states to also reduce VAT “This will help our mothers and tions with specific details on the an-
Food Index consisting of ‘Food Arti- on petroleum products to give relief sisters. This will have a revenue im- nouncements are being issued by the
cles’ from Primary Articles group and to the common man. plication of around Rs 6100 crore a Centre. Sitharaman on Saturday also
‘Food Product’ from the Manufac- The government had similarly re- year,” she said. said that the government has protect-
tured Products group have increased duced excise duty on petrol and die- The minister also referred to the ed farmers from the rise in prices of
from 167.3 in March, 2022 to 172.9 in sel in November last year on the eve Ukraine conflict and said in addition fertilizers globally and an additional
April, 2022. of Diwali. It had reduced excise duty of the fertilizer subsidy of Rs 1.05 lakh amount of Rs 1.10 lakh crore is being
In the manufactured products on petrol by Rs 5 a litre and on diesel crore announced in the budget, an ad- provided besides Rs 1.05 lakh crore
category, the increase in prices is by Rs 10 a litre. “We are reducing the ditional amount of Rs 1.10 lakh crore already sanctioned in the Union Bud-
mainly contributed by basic metals, Central excise duty on Petrol by Rs 8 is being provided to help the farmers. get 2022-23.
chemicals and chemical products, tex- per litre and on Diesel by Rs 6 per li- “Despite rising fertilizer prices “Despite the challenging inter-
tiles, machinery and equipment, elec- tre. This will reduce the price of petrol globally, we have protected our farm- national situation, we’ve ensured that
trical equipment, and food products. by Rs 9.5 per litre and of Diesel by Rs ers from such price hikes. In addition there are no shortages/scarcity of es-
On Saturday, in a significant step 7 per litre. It will have revenue impli- to the fertilizer subsidy of Rs 1.05 lakh sential goods. Even a few developed
aimed at providing relief to people cation of around Rs 1 lakh crore/year crore in the budget, an additional countries couldn’t escape some short-
from high fuel prices, the Centre an- for the government,” Sitharaman said. amount of Rs 1.10 lakh crore is being ages/disruptions. We are committed
nounced a reduction in excise duty “I wish to exhort all state gov- provided to further cushion our farm- to ensure that prices of essential items
on petrol by Rs 8 per litre and on die- ernments, especially the states where ers,” she added. are kept under control,” she added.
sel by Rs 6 per litre. Making the an- reduction wasn’t done during the last Sitharaman said the Narendra “We’ve taken a number of steps
nouncement in tweets, Finance Min- round (November 2021), to also im- Modi government is devoted to the to help the poor and middle class. As a
ister Nirmala Sitharaman said that the plement a similar cut and give relief welfare of the poor. “We’ve taken result, the average inflation during our
move will have a revenue implication to the common man,” she added. The a number of steps to help the poor tenure has remained lower than during
of around Rs 1 lakh crore per year. minister said that this year the gov- and middle class. As a result, the av- previous governments,” she said.
The minister, who made several oth- ernment will give a subsidy of Rs 200 erage inflation during our tenure has Continued at next page... >>

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