Aboutme.SubinFinance - RESERVE BANK CAN’T DECREASE THE INTEREST RATE:

Reserve Bank Can't Decrease The Interest Rate:
Indian Finance Minister Do not know “What is the Status of Indian Economy” and trying to pressurize RBI Governor Raghuram Rajan to decrease the Bank Rate [ie., Interest Rate in Whole concern”], which will be helping the industries, but what about the lack of monsoon led agriculture sector. How can we decrease the interest rate [Bank Rate] supporting the reason that Indian economy is having low inflation rate, Crude prices have come down and India’s growth factor. 

India’s Inflation Factor:

Last year Arhar dal was of the price of Rs. 60 – Rs. 80 per kg and now it’s zooming around Rs. 112 – Rs. 120 per Kg. Moong is also heading to Rs. 80/kg. Masur has increased to about Rs. 75/kg. Only Chana dal has increased by Rs. 5/kg.

Cooking Gas has increased to Rs. 645 per Cylinder.

Cooking oil [taking the example of Ruchi Oil] has increased to Rs. 80/litre, which was about Rs. 65/Litre. 

Tomato is on the sky with price of about Rs. 70/kg. Onion has already topped Rs. 85/Kg, potato also increased to about 60/kg which we used to get about Rs. 5/kg in the reaping season. All vegetables have increased to 100%, Mr. Finance Minister [India]. 

Spices too have increased to about 75%, Chilli has too risen and Ginger is swinging like the Indian Stock market. 

Milk has increased from Rs. 30/litre to about Rs. 46/litre, but number of cows and buffalo’s has been increased. Milk product has been increased to about 25% compared to last year. 

School fee has been increased to about 100% compared to last year. College fee has been raised more than 150% when compared to the previous year. Cost of books has galloped to about 150% compared to last year. Mr. Finance Minister, no school is teaching our famous books of NCERT and prefers to teach from printed books which are providing vital commission to schools. Who’s there to judge them, as we don’t have an Education Minister to watch all this things?

Okay, Diesel and Petrol price has been come down. But can you guarantee us that you can keep the price of Petrol and Diesel intact for this year. No, it all depends upon the world market. Now the Price of Crude Oil is below US$ 45/Barrel and we can’t say that it will be decreasing more. If Chinese market started cropping up, surely the Crude oil will be having a different picture in the months to come. 

Rice has been increased by Rs. 10/kg and Wheat has been increased by almost Rs. 8/Kg. Yeah, liquor has come down 20%, by looking at this figure we can see that 50% of the consumption is done by daily wagers’ which the Government is not going to curb it as it fills the coffers of yours. 

Medical bills have been increased by about 200%/annum and can you imagine the people who are having salary below Rs. 20,000 must be considered below the poverty line compared the rate of increase of prices of essential commodities.

A person is having a salary of Rs. 50,000/month and having wife and two school going kids, how can they save, have a home to stay and leave other luxury items with them. All are depended on Bank Loans, which is not cheaper till now. Bank is charging more than 12.5% per annum for the loans taken and for personal loans they’re charging more than 14% per annum. 

Luxury item has been increased by minimum 25% and even varieties have come. 

Rupee has been devalued from Rs. 62/US$ Dollar to Rs. 66/US$ Dollar, which will automatically increase the price of essential goods. 

GDP deflator has been increased from 0.2% in March 2015 to about 1.7% in June 2015. Now if you look at August 2015 inflation, it will be near to 2%. 

Then Finance Minister, Please say How the Inflation [Actual inflation] of Indian Economy considered to be down? I can’t understand, don’t stick on statistics given by wholesale index and it doesn’t include essential items. Please revise the Wholesale Index…….at least for now.


Economic Growth of India:

April – June Quarter is considered to be lesser than January – March Quarter which is considered to be 7% which is lower than 7.5% and July – September will be expected to be about 6% if the economy goes like this [GDP at constant prices]. 

If you consider Gross Value-Added prices we see that it shows 6.1% compared to previous quarter of about 7.1% in January – March.
Still we’re below the expected growth rate and still Indian Economy is stagnant right now. 

Growth in farm sector must be taken seriously, as it’s having a workforce about 60% of Population. Government policies are not looking into it seriously, once we can see India becoming an importing nation of food grain.  

Non-farm sector too is not showing growth as the market is sluggish now. 

Don’t look at the service sector as we’re having a good number of populations and it will be showing an increased growth. Industrial sector is sluggish due to weak agriculture sector, or it will be showing immense growth.



Eight Core Industrial Sectors:-

Industrial sector is not growing as we compared with last month which has shown 3% growth and now it’s showing 1.1% in July 2015. 

Why this industrial sector is not growing, not because of reduced interest rate is wrong. United States was having an interest rate of about 0.25% and after a gap of 6 ½ years only, they’re showing a slow growth. 

Indian economy will not improve until and unless we make agriculture sector growing or else we will be depending on the world market. World market will be showing less growth till the half of 2016. 

Farmers Suicide has shown more than 31% increase, which is considered to a shameful picture of BJP led Alliance rise to power. Have you done anything for them?

Land is a useful resource and your land bill will bring not only growth to property market, but will bring more suicides in the farming community. Land is only asset which farmers are having, and if you take them out, there’s no way, than committing suicide. 

If land has been diverted to property market, do you think that it will bring growth to infrastructure sector? Absolutely No, as land prices has been boomed to the maximum and no one is going to buy it, as everyone is worried about your “Black Money Speech” and “Vital Tax Speech”. So that sector too will not be growing. 

Black Money will not be coming to India, which we know. It is having lot of procedures and Indian knows that. Stop the Black Money speech and let the money roll in the market, which will create growth in property or stock market. This will send a good signal to investors outside. 


Finance Minister Comments:

Finance minister Arun Jaitley has said that the Reserve Bank of India (RBI) will take note of the fact that inflation is broadly under control, oil and commodity prices are low and prospects of a better-than-expected agricultural production, when it reviews monetary policy” [Google News].
RBI governor Raghuram Rajan has said that the central bank is not yet done with rate cuts” [Google News].
So, My Dear Indian Finance Minister, “Can you please tell me, whether we want a rate cut or not?






Comments

Popular posts from this blog

Aboutme.Subinfinance - Greece Made Europe Bleed With A "No" Referendum

Shannon V/s Seema Love Affair

Aboutme.Profsubin; Innodata Share Price Had Already Broken Out, Take Profit Or Else It Will Be Coming Back