|| SHANIWAR SAMWAD || 17-06-2023

 RBI's policy for inflation containment had been announced, rate pause is continued this time too. Rate hike is not going to move northward in near future.

Though the rate will not decrease in near future. But rate hike stopped is also equal to rate decrease.

The US Fed has paused the rate hike and it is expected that other central banks will follow same path. The reason for the inflation in each country is different with different weightage of basket like in our country the food basket  have weightage of around  40%  but 40% weightage in US is for housing sector.

The conditions after pandemic is different for every country as each one took different steps to help or ease living of citizen.

But reverse migration around the world at that time created problems which are not faced earlier. The war created situation which added problems than solving earlier one.

The prices of commodities increased after unlocking of world, the rate hike in food with labor shortages in developed economy  added problems.

Now, we see prices of commodities are cooling with WPI and CPI are coming to comfort zone of RBI.

The decline of retail price will follow the suit.

Government is keen to increase percentage of manufacturing in economy as it will absorb many hands with reduced burden on agriculture sector.

 The PLI announced for 14 sectors are already under implementation and results are coming as per planned. The execution of it, also giving rich insight to the government as course correction for same have been planned and already IT hardware PLI has been revamped.

Already number of proposal for manufacturing from different companies with different countries are pouring in with requisite new technologies. The government is keen to increase ease of doing business with reforms and reduced or cumbersome compliances. 

The domestic market with export promotion is attracting these entities, so the China plus one is need of hour.




Comments

Popular posts from this blog

FINANCIAL PLANNING REVISITED

|| SHANIWAR SAMWAD || 22-10-2022

|| SHANIWAR SAMWAD || 11-12-2021