Consumer Price Index (CPI)-New Series in September 2015 point towards steady improvement in the Indian economy

Ministry of Finance: Data on the Index of Industrial Production (IIP) for August 2015 and Consumer Price Index (CPI)-New Series in September 2015 point towards steady improvement in the Indian economy 

Ministry of Finance states that the data on the Index of Industrial Production (IIP) for August 2015 and Consumer Price Index (CPI)-New Series in September 2015 point towards steady improvement in the Indian economy. 

The August 2015 IIP growth has registered an increase of more than 6 per cent after 34 months. Cumulative IIP growth in the first five months in 2015-16 at 4.1 per cent is better than the growth of 3 per cent in the same period last year. Manufacturing sector growth at 6.9 per cent in August 2015 has spearheaded industrial production. Double digit growth in capital goods (21.8 per cent) and consumer durables (17 per cent) in August 2015, helped of course by a favourable base effect, imply improvement in investment and consumption demand.

The year-on-year inflation as reflected in all India CPI (combined) increased to 4.4 per cent in September 2015 from 3.7 per cent in August 2015. However it is low compared to 5.6 per cent in September 2014. Inflation based on Consumer Food Price Index (CFPI) in September 2015 (3.9 per cent) is lower than in September 2014 (6.2 per cent).

Inflation continues to be low as per the latest available CPI numbers. Industrial growth data is a reflection of recovery in the economy, predominantly led by domestic demand as the external sector environment continues to be sluggish. 

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Another Milestone achieved under Pradhan Mantri Jan Dhan Yojana (PMJDY) - Deposits in accounts now exceed Rs.25,000 crore; accounts having balances in them now exceed 60% 

            Deposits in accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) have now exceeded Rs. 25,000 crore which has come to the banks as low cost deposits. The accounts that can be opened under PMJDY are Basic Savings Bank Deposit Accounts (BSBDA) which can be with zero balance as per Reserve Bank of India guidelines. However, it has been noticed that good amount of deposit has been made in these accounts.

As on 07.10.2015, the deposits collected stood at Rs.25146.97 crore. The PMJDY accounts having balances in them also now exceed 60% and the zero balance accounts have reduced to less than 40%.

The progress in deposits in these accounts is as follows:-

Major banks who have contributed to this achievement are State Bank of India  (Rs. 2989.18 crore), United Bank of India  (Rs.2644.77 crore), Oriental Bank of Commerce ( 2104.70 crore), Bank of Baroda (Rs.1771.42 crore), and UCO Bank  ( Rs.1178.17 crore).

PMJDY– a National Mission on Financial Inclusion was announced by the Prime Minister Shri Narendra Modi in his Independence Day Speech 2014 and formally launched by him on 28^th August, 2014 with the main objective of covering all households with at least one bank account per household across the country.