WHAT’S HOT, WHAT WILL BE
MARGIN PAINS
Elevated global fuel and commodity prices have shrunk profit margins of the manufacturing industry, with most unable to pass on the entire impact of expensive raw materials to consumers amid muted demand. The core consumer price index inflation, which is non-food and nonfuel, continued to remain elevated above 6 per cent in November. Wholesale price index-based core inflation climbed to a fresh high of 12.3 per cent in November and remained over 11 per cent for the fifth straight month. No relief seems to be in sight in the new year.
—DILASHA SETH
HIGH FUEL and commodity prices have choked profit margins of manufacturing companies
The Third Wave
THE SPIKE in Omicron cases has brought back the spectre of restrictions on gatherings and movement of people, which is likely to impact the reviving service sector. The medical tourism industry, which started reviving last quarter, is now witnessing a drop in medical value travel patients in hospitals across India. The education sector was pinning hopes on vaccination of children aged 15-18, but is again expected to step back. The rising epidemic curve may severely hit revenues of restaurants, airlines, cinema halls, among others. Tough times ahead, again.
—NEETU CHANDRA SHARMA
THE BUDGETED FISCAL DEFICIT FOR FY22 IS 6.8%. ECONOMISTS EXPECT THE NUMBER TO BE BETTER ON THE BACK OF BETTER TAX REVENUES 6.8%
DEFICIT GAINS
fiscal deficit be at the end of FY22? The Reserve Bank of India, in its financial stability report, has expressed reservations over the Union government’s ability to rein in the fiscal deficit at the budgeted 6.8 per cent after it moved the second supplementary demand of grants worth
