Hey Majestic-milf,
keep yourself a little bit up-to-date on what's happening around the world instead of reading an outdated article that was published in December 2021. We are in 2022 for your kind information, that is too June. So wake up!
Inflation has been a problem for the entire world. But two things have recently happened,
1. Russia agreed to sell oil to India at $35 discount per barrel.
2. OPEC Plus countries have decided to increase production from July and continue in August as well
These will drastically increase the oil supply in the world market and the price of the oil will come down to a great extent. Now along with interest rate hike and cheaper oil, the high inflation should come under control by the end of the 2022.
Topic: Trouble in paradise for India? - page 3. (Read 401 times)
The problem started kick in when they gave state to state authorities on imposing the taxes. There is at least few cents of difference between petrol and diesel prices itself within the country. This is because India's Central government and State Government incurs the taxes on the basis of GST structure. This further divides into CGST and SGST meaning (Central & State Service Tax). This is not the bad part, the bad part is this tax is entirely different from the Import duty, which gets CESS added up.
It's mind wobbling when you see the tax structure in here.
Now, further to the case, after pandemic hit hard, India's economy was hampered too as the case with entire world. With Russia Ukraine war, India being friendly nation is now in ambiguity to whom to support.
Though Russia has decreased a little charges on crude oil, government continues to recover the funds through taxes and thus everything is becoming very very costly in India.
Its fuel, then causes cost appreciation in transport, logistics, products and services. The whole circle keeps rising.
It's mind wobbling when you see the tax structure in here.
Now, further to the case, after pandemic hit hard, India's economy was hampered too as the case with entire world. With Russia Ukraine war, India being friendly nation is now in ambiguity to whom to support.
Though Russia has decreased a little charges on crude oil, government continues to recover the funds through taxes and thus everything is becoming very very costly in India.
Its fuel, then causes cost appreciation in transport, logistics, products and services. The whole circle keeps rising.
It would seem that what affects a nation in any part of the world negatively or positively can also affect another. Riding on the back of the Russia-Ukraine conflict is the matter of India's GDP.
Moving from a 6.6% contraction in the year 2020-2021 to an 8.7 then on to 8.9% growth in 2021-2022, it looked like they had cause to celebrate. But it looks like the celebration is short lived as concerns have been raised by policy makers, along with the Reserve Of India (RBI) as they regrettably announce it's first interest rate hike in at least four years.
India, one of the countries with a high GDP, import more than 80% of its crude oil and is also the largest importer of edible oil, but with prices skyrocketing and inflation rising, it has taken a toll on their economy. According to the RBI, consumer inflation has hit a 6.95% and as a result, has slashed it's yearly growth forecast to 7.2%.
Meanwhile, Prime minister, Narenda Modi gave an announcement earlier that plans to introduce tax breaks that will offset higher food and petrol costs are being made. https://www.aljazeera.com/news/2021/12/28/india-economy
Moving from a 6.6% contraction in the year 2020-2021 to an 8.7 then on to 8.9% growth in 2021-2022, it looked like they had cause to celebrate. But it looks like the celebration is short lived as concerns have been raised by policy makers, along with the Reserve Of India (RBI) as they regrettably announce it's first interest rate hike in at least four years.
India, one of the countries with a high GDP, import more than 80% of its crude oil and is also the largest importer of edible oil, but with prices skyrocketing and inflation rising, it has taken a toll on their economy. According to the RBI, consumer inflation has hit a 6.95% and as a result, has slashed it's yearly growth forecast to 7.2%.
Meanwhile, Prime minister, Narenda Modi gave an announcement earlier that plans to introduce tax breaks that will offset higher food and petrol costs are being made. https://www.aljazeera.com/news/2021/12/28/india-economy
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