GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS
UNSTARRED QUESTION NO. 687
TO BE ANSWERED ON NOVEMBER 29, 2012 / AGRAHAYANA 8, 1934 (SAKA)
Steps taken to Curb the High Level of Inflation
687. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state:
(a) the trends in inflation in the last three years, year-wise;
(b) whether Government is aware of the successive growth in inflation for the last several quarters, despite several announcements by Government that inflation will decline; and
(c) if so, the steps being taken by Government to curb the high level of inflation in the country?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)
(a) The headline inflation measured in terms of Wholesale Price Index was 3.81% in 2009-10, 9.56% in 2010-11, 8:94% in 2011-12 and 7.63% in April- October, 2012.
(b) The factors contributing to the persistence of inflation, however, have been changing over time. Higher international prices of tradable including crude petroleum change in dietary patterns leading to structural demand-supply mismatch for protein rich items and increase in prices of cereals and pulses, partly on account of increase in MSP, have contributed to inflation.
(c) Government has been conscious of the need of containing inflation and has taken several administrative and fiscal measures in this regard. Details of the steps taken by the Government are given in Annex 1
Measures taken and proposed by the Government to contain price rise
1. Fiscal & Administrative measures
2. Budgetary and other measures
A number of measures have been announced in Union Budget 2012-13 to augment supply and improve storage and warehousing facilities. Government had launched a National Mission for Protein supplements in 2011-12 with allocation of Rs 300 crore. To broaden the $cope of production of fish to coastal aquaculture, apart from fresh water aquaculture, the outlay in 2012-13 is being stepped up to Rs 500 crore. Recently, Government has permitted foreign Direct Investment (FDI) in multi-brand retail trading. This will help consumers and farmers as it will improve the selling and purchasing facilities.
3. Monetary measures
The Reserve Bank of India (RBI) had also taken suitable steps to contain inflation with 13 consecutive increases by 375 bps in policy rates from March 2010 to October 2011.