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Inflation in India.

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Inflation in India.

  1. 1. Inflation In India<br />Group 5A<br />AakashDubey | Aditya Chauhan | Chinmaya Vijayakumar<br />ParulOberoi | Nagarjun Venkata<br />
  2. 2. India’s Inflation Story - Wholesale Price Index<br />WPI Index<br />
  3. 3. Factors Affecting Inflation<br />
  4. 4. Steps taken by RBI<br />Repo rate hike : 5.6% in January 2009 to 8% in July 2011.<br />CRR hike: 5% in January 2009 to 6% in July 2011.<br />Buy dollars from banks and exporters to keep rupee appreciated.<br />Sterilization effect through sale of sterilization bonds to devalue currency.<br />Source: http://www.rbi.org.in/home.aspx.<br />
  5. 5. Consequences<br />Source: http://www.ft.com/intl/cms/s/0/cef8d1ce-d2d8-11e0-9aae-00144feab49a.html#axzz1W7Td5ghJ<br />
  6. 6. Way Forward<br />RBI to raise rates further<br /> (twelfth rise in past 18 months)<br />Investment may remain soft in the near term, while private consumption may decelerate<br />Declining global oil prices to have salutary impact on domestic inflation<br />
  7. 7. Steps in future<br />Rationalize price disparity between the producers and end-consumers.<br />Direct foreign capital to develop infrastructure & bolster agricultural growth.<br />Ensure greater transparency in sterilization operations.<br />Push key reforms in land, tax, and infrastructure.<br />

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