India Q1 GDP Growth LIVE Updates: Services, government spending & private

By Street Asset On Aug 31, 2023 0 0

02:16 PM

India GDP Live: Eyes on overall inflationary pressures

India GDP Live: The impact of the policy tightening is still in progress, and it is anticipated that this will continue to exert a downward influence on core inflation in the coming quarters. According to Jayanth Rama Varma, an external MPC member, during an interview with Bloomberg, the committee needs to stay vigilant for any indications of an increase in overall inflationary pressures or a reversal in the decline of core inflation.

02:03 PM

India Q1 GDP: RBI and the inflation task

India Q1 GDP: The primary objective of RBI is to maintain inflation within a range of 2% to 6%. However, in the previous month, there was a notable increase in the consumer price index, which rose by 7.44%. This surge was particularly evident in food prices, constituting approximately half of the CPI, which surged by 11.51%. This rise was attributed to concerns about limited supplies due to adverse weather conditions impacting crop production.

Shashanka Bhide, a prominent member of the monetary policy committee, emphasized the importance of tackling food inflation. Bhide, in an interview with Bloomberg, highlighted the necessity of bolstering supplies in the domestic market and for social safety programs to effectively address this issue.

01:49 PM

India GDP News: Another climatic challenge “MJO”

India GDP News: India faces another climatic challenge known as the Madden Julian Oscillation (MJO), which is a distinct weather phenomenon. According to Mrutyunjay Mohapatra, the head of the India Meteorological Department (IMD), the deficient rainfall in August can be attributed to both El Nino and the adverse phase of the Madden Julian Oscillation. This oscillation diminishes convection in the Bay of Bengal and the Arabian Sea.

The Madden Julian Oscillation (MJO) is a weather pattern characterized by the movement of clouds, rainfall, winds, and pressure. This disturbance travels eastward across tropical regions and completes a full circle in about 30 to 60 days, as reported by the National Oceanic and Atmospheric Administration (NOAA) of the United States. Meteorologists Dr. Roland Madden and Dr. Paul Julian first identified the MJO in the early 1970s. It comprises of two main phases: the convective (enhanced rainfall) phase and the suppressed rainfall phase.

01:33 PM

India GDP Live: The ‘little boy’ giving big troubles

India GDP Live: El Nino, a term signifying “the little boy” in Spanish, has emerged as a troublesome factor for India’s economy. This weather phenomenon interferes with the normal monsoon patterns in India, leading to droughts and agricultural losses. Meteorologists predict that India could experience an extremely dry August due to the escalating El Nino conditions.

The ongoing monsoon season might turn out to be the most arid since 2015, a year marked by a rainfall deficiency of 13 percent. The influence of El Nino resulted in reduced rainfall during August, and its adverse effects are anticipated to extend to the rainfall patterns in September as well.

01:19 PM

India GDP News: Inflation concerns remain

India GDP News: In July, the inflation rate surged to 7.4%, surpassing the upper tolerance threshold of 6% set by the Reserve Bank of India (RBI). This marked the first instance of such breach in the current year. According to economists, there is a high probability that this breach will occur once more in August. A recent survey conducted among 17 economists by ET revealed that the median inflation projection for the fiscal year 2023-24 stands at 5.5%, which is slightly above the RBI’s own estimate of 5.4%.

01:06 PM

India GDP Live: The LPG trend

India GDP Live: An ET analysis reveals that the prices of LPG had been decreasing prior to the reduction. The inflation rate for LPG had declined to 4.9% in July, a notable drop from the rates of 11.8% in the April-June quarter and 18.3% in the fiscal year 2022-23. On Tuesday, the government implemented a reduction of Rs 200 per cylinder for LPG prices across all customer categories, resulting in a cost reduction of Rs 400 for beneficiaries enrolled in the Ujjwala Yojana.

12:52 PM

India Q1 GDP Growth: Lower LPG prices and inflation

India Q1 GDP Growth: The reduction in LPG prices is expected to have an impact on this fiscal year’s inflation, potentially causing a decrease of 10 to 30 basis points. Economists predict that September could see a decline of 20 to 30 basis points alone. According to their analysis, the inflation rate might drop below 6% by September. It’s worth noting that a basis point represents one-hundredth of a percentage point.

Gaura Sengupta, economist, IDFC First Bank, predicted 5.6% inflation in September. He said, “Our September estimate assumes a further decline in tomato prices and incorporates the impact of LPG…