Categories: Economy

Bhagwat Karad: Govt to take additional efforts to reduce inflation if required

Bhagwat Kishanrao Karad, India’s state minister for finance, stated that the Finance Ministry will take additional efforts to reduce inflation if necessary. Inflation is a worldwide phenomena, and India is better off than other countries. The government is keeping a close eye on inflation and doing everything it can to keep it under control. According to the minister of state, the Russia-Ukraine conflict has had a significant impact on India’s inflation.

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The Finance ministry has already reduced excise duty in order to decrease the retail impact of gasoline inflation on customers.
The price of crude oil has been rising steadily over the world. Following the reduction in excise duty by the federal government, some states reduced their fuel VAT.
To mitigate the impact of rising world prices on farmers, India has boosted the fertiliser subsidy for the Kharif season.
Wheat exports were also prohibited by the government in order to prevent domestic inflation.
Sugar shipments were capped at 100 LMT by the food ministry in anticipation of a scarcity in October and November.
In April, CPI inflation reached 7.9%, well above the government-mandated maximum of 4% (+2%). The CPI inflation rate for May fell to nearly 7% thanks to joint efforts by the Reserve Bank of India and the Finance Ministry.
To restrict liquidity and manage inflation, the RBI lifted the repo rate twice, first by 40 basis points and later by 50 basis points.