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Friday
November 2018
6:25 AM IST
News Headlines
Jailed Om Prakash Chautala Expels Older Son For "Anti-Party Activities"        ISRO Launches Communication Satellite, Has 'Geo-Eye' To Monitor India        US Vice President Mike Pence takes Myanmar’s Aung San Suu Kyi to task over treatment of Rohingya        Sri Lankan Parliament passes no-trust vote against Rajapaksa        Mitchell Starc released from IPL contract ahead of Ashes, WC        World Championships: Older, wiser, stronger Mary Kom attempts to win 6th global title        India to host Italy on grass in Kolkata        It won't be easy for Mary Kom, says High Performance Director Nieva        Sensex rebounds 332 pts on easing crude, rupee gains        Govt mulls second round of 2,500 MW medium-term PPA auction        UK says Brexit deal 'almost within touching distance'        Trump criticises Macron again over European defence remarks        Infiltration bid foiled by Army in J&K, two terrorists killed        Delhi's pollution remains 'severe' as light showers further deteriorates air quality: authorities        Flipkart Group CEO Binny Bansal quits over 'serious personal misconduct' charges        Preparing for Australia tour by watching videos: Shami        India invites Swedish companies to explore investment opportunities        Govt cancels ED officer Rajeshwar Singh's leave        175 dead, over 10,000 affected by Nigeria cholera outbreak        Lankan parties move SC against Parliament dissolution by Prez Sirisena        
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Business News
Higher MSP may have inflation, fiscal costs: Report
 
New Delhi, Jul 8 (PTI) Government's decision to hike MSP for kharif crops is expected to impact GDP by

by 0.1-0.2 per cent besides adding to inflationary pressures, says a DBS report.

According to the global financial services major, higher MSPs carry inflation as well as fiscal costs.

"For the fiscal math, impact is likely to be in the tune of 0.1-0.2 per cent of GDP, which might necessitate higher revenue support or lower capex spending to limit any risk to the 2018-19 deficit targets," DBS said in a research report.

Seeking to address farm distress ahead of general elections, the Centre on July 4 hiked price paid to farmers for paddy by a record Rs 200 per quintal and by up to 52 per cent for other summer-sown crops.

The move is expected to lead to higher inflation and widen fiscal deficit because of increase in food subsidy bill to over Rs 2 lakh crore from Rs 1.70 lakh crore provided in the Budget for 2018-19, experts said.

As per the report, for the rest of this financial year, the impact on inflation will be in the range of around 25-30 bps.

Regarding RBI's policy stance, the report said higher MSPs will add to inflationary pressures, fiscal slippage and this might prompt the central bank to go for another rate hike.

"For RBI, MSP increase poses an additional risk to their inflation view, besides fiscal slippage worries and higher oil prices," the report said adding "August rate hike risks remain on the table".

In June, the Reserve Bank had upped its retail inflation projection by 0.30 per cent and kept the policy stance in the neutral zone, even as it hiked the key rate by 0.25 per cent to 6.25 per cent.


Sensex rebounds 332 pts on easing crude, rupee gains
Govt mulls second round of 2,500 MW medium-term PPA auction
India invites Swedish companies to explore investment opportunities
Govt cancels ED officer Rajeshwar Singh's leave
Facebook blocks 115 accounts ahead of US midterm elections
Indian norms on PCA, capital are conservative, rule-based: SBI
SBI back in black on credit growth
TN transport employees threaten to go on strike
Ease of biz ranking: Indian can improve further, says Jaitley
Rupee declines 11 paise to close at 73.27 against US dollar
Gold rises in futures trade; up 0.54% on global cues
Mistry announces startup fund on 2nd anniversary of his ouster
BSE gets Sebi's nod to launch Oman crude oil contract
Sensex cracks 34,000-mark, Nifty below 10,200 on weak global cues
Petrol pumps in Delhi on strike demanding VAT cut
RBI likely to stay on hold for rest of FY'19 : Report
Japan introduces Artificial Intelligence technology to ease business
Reliance Industries posts net profit of Rs 9516cr in Q2
Infosys Q2 net profit grows 10.3% to Rs 4,110 crore
Trillions in US net worth vulnerable to recession: IMF
KERALA NEWS
Sabarimala protests: Arrests up to 2061, Kerala HC warns police
 Thiruvananthapuram, OCT 27: As the number of people arrested for allegedly being involved in violent  
Vijayan urges UAE Keralites to back salary challenge
Sabarimala row: Protests against SC verdict continue
Balabhaskar's wife Lakshmi shifted to ICU
INTERNATIONAL NEWS
US Vice President Mike Pence takes Myanmar’s Aung San Suu Kyi to task over treatment of Rohingya
 (Singapore, Nov 14, 2018):The violence which drove 700,000 Rohingya Muslims from Myanmar into
Sri Lankan Parliament passes no-trust vote against Rajapaksa
UK says Brexit deal 'almost within touching distance'
Trump criticises Macron again over European defence remarks
NATIONAL NEWS
Jailed Om Prakash Chautala Expels Older Son For "Anti-Party Activities"
 (New Delhi, Nov 14, 2018):In yet another escalation of the family feud, former Haryana chief
ISRO Launches Communication Satellite, Has 'Geo-Eye' To Monitor India
Infiltration bid foiled by Army in J&K, two terrorists killed
Delhi's pollution remains 'severe' as light showers further deteriorates air quality: authorities
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