Government may give relief to India Inc on input cost, crucial meeting on inflation tomorrow- Details

After relief on petrol, diesel, cooking gas, and edible oil, the government is mulling to give some relief to India Inc (corporates) in input cost as the action to curb inflammatory pressures continues. 

The government last week slashed the central excise duty on petrol and diesel, and announced a subsidy on cooking gas, while announced an exemption of import duty on soybean and sunflower edible oils on Tuesday. 

According to Zee Business Correspondent Ambarish Pandey, “A big meeting is called on Thursday to discuss inflation. The meeting will be held under the chairmanship of Cabinet Secretary, besides, DFPD, Commerce & Industry, Consumer Affairs, Petroleum, and Agriculture secretaries will also be present for the meeting as well as the Finance Ministry officials.” 

The agenda of the meeting is mainly brainstorming on options to control inflation, as the government aims to reduce inflation by 70-80 basis points, the Zee Business report said.  

Cabinet Secretary sought a report from the concerned ministries and also sought a list of items from the Ministry of Commerce on which export duty needs to be reduced, Pandey said in his report. 

The government is also mulling removing Agri Cess for some time on many products. While it is also considering taking measures on Supply-Side Management, similarly, Petroleum Secretary is likely to give a report on gas and ethanol. 

The Reserve Bank of India’s monetary policy meeting in its June meeting may issue a revised inflation target and expected that the interest rates will go up to pre-covid level, Pandey said quoting sources. 

He added that the government will also possibly increase borrowing and may consider cutting expenditure.