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Inflation a downside risk to India s growth momentum: Finance ministry

The finance ministry on Friday flagged global and domestic inflation as a “downside risk” to India s growth momentum. “While global and domestic inflation pose some downside risks in the near term, continued policy support to bolster private investment and discretionary consumption, the key levers of India’s growth story, continues to be an absolute policy priority of the government,” said the ministry’s monthly economic review report for February. The focus of the report was on the rising international oil prices hurting economic recovery and demand. “While intensification of fuel prices and broad-based domestic cost pass-through pressures is a downside risk, core inflation is expected to strengthen further as demand recovers to pre-Covid levels,” it said.

448 infra projects hit by cost overruns worth Rs 4 02 lakh crore

448 infra projects report cost overrun of Rs 4 02 trn; 539 behind schedule

As many as 448 central sector infrastructure projects have reported a cost overrun of over Rs 4.02 lakh crore as of February 21, 2021. The monthly Flash Report by the Ministry of Statistics and Programme Implementation said that 539 projects are running behind schedule. Total original cost of implementation of the 1,739 projects was Rs 22,18,210.29 crore and their anticipated completion cost is likely to be Rs 26,20,618.44 crore, which reflects overall cost overruns of Rs 4,02,408.15 crore (18.14 per cent of original cost), it said. The expenditure incurred on these projects till January 2021 is over Rs 12.29 lakh crore, which is 46.92 per cent of the anticipated cost of the projects.

In agri-credit, small farmers are still outside the fence

Updated: January 25, 2021 00:56 IST The agriculture sector’s performance has not been commensurate with the increasing subsidised credit it receives Share Article AAA The agriculture sector’s performance has not been commensurate with the increasing subsidised credit it receives Farmers on the warpath would mean that agriculture reforms have again occupied centrestage not just in the minds of the politicians but also policymakers. To enable small farmers to diversify their crops or improve their income they must have access to credit at reasonable rates of interest. This has been an agenda of the triad of the Centre, the States and the Reserve Bank of India (RBI) for decades. Unfortunately, while the volume of credit has improved over the decades, its quality and impact on agriculture has only deteriorated. Agricultural credit has become less efficient in delivering agricultural growth. Otherwise, why should over 85% of farmers’ income remain stagnant over the years? An

IIP Contracts Nearly 2% In November 2020

The Index of Industrial Production (IIP) saw a contraction of 1.9% for November 2020, reverting back to the declining territory after rising in the previous two months, data released by the Ministry of Statistics & Programme Implementation (MOSPI) showed on Tuesday. For November, IIP with base 2011-12 stands at 126.3, the Ministry s data showed. IIP for mining, manufacturing and electricity sectors for the same month stand at 104.5, 128.4 and 144.8, respectively. Powered by Capital Market - Live News (This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.) Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even du

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