1 week Ago
Finance Minister Nirmala Sitharaman’s 2025 Budget has to undertake a host of measures to address the economic landscape, with a focus on India’s inflation which has been a key concern for policymakers. ET Year-end Special Reads Stocks to buy in 2025: 66 ideas from top brokerages for your new year portfolio What does 2025 hold for India's IT services sector? 2025 may be the year of EVs in India, dominated by SUV launches Despite the RBI keeping policy rates constant at 6.5 per cent since February 2023, inflation has continued to be a problem with temporary reliefs intermittently.
Both the Reserve Bank of India and the Finance Ministry have pointed out that if inflation is allowed to run unchecked, it can undermine the prospects of the real economy. The RBI's Monetary Policy Committee kept its key interest rate unchanged in its last meeting held in December citing inflationary concerns. The central bank had raised its inflation forecast for this fiscal year at 4.
8%. While Shaktikanta Das and three others had votes against cuts, two members had voted in support of slashing rates in December meeting. "I believe that a rate cut would help in reviving economic growth without worsening the inflationary situation, which may soften with seasonal correction in prices.
Hence, I will again vote for a 25-basis point cut in the repo rate while keeping a neutral stance. In addition, we should also explore the use of non-rate measures for enhancing liquidity, such as a 50-basis point cut in CRR, to help enhance liquidity," Dr Nagesh, member of MPC who voted in support of cuts said, according to the MPC minutes shared by the central bank. Before MPC met for the December meeting, Union Minister Nirmala Sitharaman and Piyush Goyal had voiced their opinion that rate cuts remain essential at that point.
Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrows Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance Financial Literacy i.
e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Data Science SQL Server Bootcamp 2024: Transform from Beginner to Pro By - Metla Sudha Sekhar, IT Specialist and Developer View Program You Might Also Like: Budget 2025: Why govt needs to anchor its ports before its manufacturing powerhouse dream can fully set sail Retail inflation surged to 6.2% in October, marking the fastest rise in over a year, primarily driven by volatile food prices. Food inflation print spiked to a 15-month high of 10.
9%, lifting retail inflation beyond the RBI’s target of 4% and even its tolerance band of 2-6%. For the month of December, retail inflation had somewhat eased to 5.48 per cent but was still above RBI’s tolerance band.
Major contributors to high inflation have been high food prices which are the cause for demand slowdown in India, and aligning inflation to the central bank's 4% target is key to ensuring sustained economic growth, minutes of the RBI's latest policy meeting showed. What can Budget 2025 include? The Economic Survey 2024 recommended that India’s inflation targeting framework exclude food prices, as food inflation is primarily supply-driven rather than demand-driven. It suggested that the government should address food inflation through supply-side measures rather than relying on the RBI to manage it with demand-side tools.
The upcoming Bugdet can also promote technological innovations and solutions (such as blockchain and AI) to digitise these supply chains, track inventory and predict weather-based adversaries, thereby reducing wastage and improving forecasting. “We anticipate a focus on long-term solutions aimed at strengthening the agricultural value chain, incentivising production and addressing structural supply-side issues that add to the delivery cost. In the short term, we expect the government to go with Direct Benefit Transfer (DBTs) and food coupons to support rural consumption, as rural inflation is higher and affects rural demand,” said Deloitte in its expectations for the upcoming Budget.
You Might Also Like: Can Budget 2025 address India's unemployment woes? Furthermore, the 2025 Budget can unleash long-term initiatives, such as value chain development projects that could address the sudden surge in food prices and reduce post-harvest losses. Additionally, to curb food prices, the Budget can bring in a measure to develop a network of cold storage facilities and warehouses at the district and village levels to minimise post-harvest losses and ensure a steady food supply throughout the year. “Promote digital marketplaces that expand platforms such as eNAM (National Agricultural Market) to provide farmers direct access to buyers, reducing dependency on intermediaries.
Ensure that food distribution programmes such as PDS (Public Distribution System) work efficiently to cushion the poorest sections from food inflation,” said Deloitte in a report. (You can now subscribe to our Economic Times WhatsApp channel ).
