News

India May Consider Fuel, Maize Tax Cuts to Cool Inflation

In response to the central bank’s recommendations to assist in containing rising retail inflation, the Indian government may think about lowering levies on some commodities including maize and fuel. A choice won’t be made, though, until February’s inflation figures are made public. According to figures released this week, India’s annual rate of retail inflation increased to 6.52% in January from 5.72% in December.

Food inflation is expected to remain high, and current prices for milk, corn, and soy oil are raising concerns about inflation. The administration is considering lowering import taxes on goods like maize, which carries a 60% basic charge, and it may even lower fuel taxes once more.

Although the price of crude oil has decreased and stabilised globally in recent months, the lower import costs have not been passed on to customers or businesses striving to recover from losses. More than two thirds of India’s oil needs are imported. A tax cut by the federal government would encourage gas station operators to pass along the savings to retail customers, which would assist lower inflation.

Retail inflation in January exceeded the RBI’s upper target limit of 6% for the first time since October and was significantly higher than the 5.9% prediction in a Reuters poll of 44 analysts. This has been one method the government and RBI have used to coordinate in order to establish a macroeconomic climate that is stable. Among the obligations are fuel and corn. Before deciding on these, officials are awaiting at least one more print.

It would be reasonable to assume that if inflation stays above the 6% threshold in the coming few months, another rate hike may be contemplated, according to Bank of Baroda Chief Economist Madan Sabnavis, who believes that this data continues to support the RBI’s decision and stance. He further stated that there was little chance of a hike.

Read More

Recent Posts

NADJA Inc.: Bringing the full potential of automation technology to businesses

How will technological automation shape the future? For a long time, this has been a…

4 hours ago

10 Best Lead Generation Software: To Drive More Sales (2025)

The number of factors that go into creating and keeping up a successful lead generation…

2 days ago

AI Novel Writing Software: 10 Best Tools for Storytelling

Ever since the introduction of Generative AI, a new integration is emerging every now and…

2 days ago

10 Best Video Conferencing Software: Tools for Seamless Virtual Meetings

While in-person meetings are indisputable, video conferencing is a good substitute, particularly for completely remote…

5 days ago

10 Best OCR Software: Transforming Text Recognition Solutions

While mankind is moving towards digitalized solutions, the relevance of printed material has not diminished.…

5 days ago

Transcription Software: 7 Efficient Tools for Accurate Transcripts 2024

Since the Pandemic, the way individuals interact with content and manage data has changed significantly.…

1 week ago