India 2018

226 India 2018
countries, international financial institutions, etc. The "other liabilities" include
outstanding against the various small saving schemes, provident funds,
securities issued to the oil marketing companies, fertilizer companies and Food
Corporation of India, reserve funds and deposits and other items.
Prices and Inflation
Inflation based on Consumer Price Index (Combined), which remained
persistently high at around 9-10 per cent during 2012-14, moderated significantly
to 5.9 per cent in 2014-15 and further to 4.9 per cent in 2015-16. It averaged 4.5
per cent in 2016-17 and stood at 2.4 percent in July 2017. Food inflation based
on Consumer Food Price Index (CFPI) which was 6.4 per cent in 2014-15
moderated to 4.9 per cent in 2015-16. It averaged 4.2 per cent in 2016-17 and
stood at -0.3 per cent in July 2017. During the current financial year 2017-18
(April-July), average food inflation has remained negative due to low inflation
in pulses, vegetables, and spices. Inflation in terms of other CPI's, viz, Consumer
Price Index for Industrial Workers, Agricultural Labourers and Rural Labourers
averaged around 1.5 per cent in the current financial year 2017-18 (April-July).
Inflation measured in terms of Wholesale Price Index (WPI) which remained
persistently high at around 7 per cent during 2011-14 moderated to 1.2 per cent
in 2014-15 and further to (-) 3.7 per cent in 2015-16. It averaged 1.7 per cent in
2016-17 and stood at 1.9 percent in July 2017.WPI food inflation (food articles +
food products) which averaged 9.6 percent during 2013-14 moderated to 4.3
percent in 2014-15 and further to 1.2 per cent in 2015-16. It averaged 5.8 per
cent in 2016-17 and stood at 2.1 percent in July 2017.
Measures to Control Inflation
The Government has taken a number of measures to control inflation. The steps
taken, inter alia, include, (i) increased allocation for price stabilization fund in
the budget 2017-18 to check volatility of prices of essential commodities, in
particular of pulses; (ii) approved creation of a dynamic buffer of upto 20 lakh
tonnes of pulses for appropriate market intervention; (iii) states/UTs empowered
to impose stock limits in respect of pulses, onion, edible oils and edible oil seeds
under the Essential Commodities Act and (iv) announced higher Minimum
Support Prices so as to incentivize production and thereby enhance availability
of food items which may help moderate prices.
Climate Change Finance
India ratified the Paris Agreement in 2016. India's comprehensive NDC target
is to lower the emissions intensity of GDP by 33 to 35 per cent by 2030 from
2005 levels, to increase the share of non-fossil fuels based power generation
capacity to 40 per cent of installed electric power capacity by 2030, and to create
an additional (cumulative) carbon sink of 2.5-3 GtCO2e through additional forest
and tree cover by 2030. Provision of 'new and additional' financial resources by
the developed countries from predominantly public sources and on grant/
concessional basis is extremely important for the achievement of the global