|| SHANIWAR SAMWAD || 18-06-2022

 Inflation is started its downward journey with approx.7.1%  this week.

The CPI  and  WPI  both are coming down, and we have a comfortable condition with forex reserve.

The crude is still around  $115per barrel, but the good news is that we are getting a massive discount from Russia.

But the remaining discount is still good enough for our economy; the last few days back our energy cost is not increasing.

The world over inflation is high with major central banks increasing rates to tame inflation, every country has a band for inflation which indicate its comfort up to that level. The availability of easy money is getting over and liquidity is getting sucked.

The war between Russia and Ukraine is not over yet with no sign of ending soon. The conflict has its implication with increased commodities prices all over the world.

The continuity in crises gives us the best opportunity to overcome the problems basically, our economy is not increasing as desired. 

The loss for citizens with 40k per month earning is high with the ability to spend is less. The consumer demand in this space is weak.

The price realization for wheat is better than last year which will spruce demand in the coming months, also normal mansion prediction entails a good demand scenario.

The inflation in the world over is also giving us another chance to grab the share in world trade. This year we have good export orders in both goods and services which allowed us to increase our overall business activity.

Inflation is good for us, services and goods as a cheap alternative for same are required which is possible for us due to large domestic market.

The pandemic has already changed the nature of work and lockdowns in China are disrupting the supply chain everywhere, here we can fill that gap.

Our labor cost is very less than that of China which was considered for its cheap labor.

Now, that is not the case anymore, also the aging population in China, as well as population decline, is the major cause of concern for them with repeated attempts to increase the population is not giving any desired result which is not the case for us, our working population is an asset for us for today as well as tomorrow.

Going forward our inflation will moderate which will reduce our pain with another golden opportunity to increase our own income level.

This opportunity can be called as "ATMANIRBHAR BHARAT 2.0".

Comments

Popular posts from this blog

FINANCIAL PLANNING REVISITED

|| SHANIWAR SAMWAD || 22-10-2022

|| SHANIWAR SAMWAD || 11-12-2021