Lok Sabha Question No. 2399 (UNSTARRED), answered on 2016-11-30
Subject: CPI
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: ANANT KUMAR DATTATREYA HEGDE, CH. MALLA REDDY

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

UNSTARRED QUESTION NO. 2399 TO BE ANSWERED ON WEDNESDAY, THE 30 TH  NOVEMBER, 2016

CPI

2399.  SHRI ANANTKUMAR HEGDE: SHRI CH. MALLA REDDY:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a) whether the consumer price index is found to be different in rural and urban areas across the country;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Consumer Price Index (CPI) for September has fallen  to  a  13  month  low  but  over  shadowed  by  the fall  in the Index of Industrial Production (IIP) in August by 0.7 per cent for the second month; and
- (d) if so, the corrective steps the Government is taking to spur the private investment?

## ANSWER

MINISTER  FOR  STATISTICS  AND  PROGRAMME  IMPLEMENTATION [SHRI D. V. SADANANDA GOWDA]

- (a):   Yes Madam.

(b):    All  India  Monthly  Consumer  Price  Indices  (CPIs),  for  rural  and urban sectors, compiled by the Ministry of Statistics and Programme Implementation, from January 2016 to October 2016 are given below:

Table 1. All India Monthly CPI (General) for Rural and Urban (Base Year 2012=100)

| Year   | CPI   |   Janua ry |   Febru ary |   March |   April |   May |   June |   July |   Augu st |   Septe mber |   Octo ber # |
|--------|-------|------------|-------------|---------|---------|-------|--------|--------|-----------|--------------|--------------|
| 2016   | Rural |      128.1 |       127.9 |   128   |   129   | 130.3 |  131.9 |    133 |     133.5 |        133.4 |        133.8 |
|        | Urban |      124.2 |       123.8 |   123.8 |   125.3 | 126.6 |  128.1 |    129 |     128.4 |        128   |        128.6 |

The indices are different for rural and urban areas because of different composition of item baskets, different weighing diagrams and prices collected from different types of markets. (c): Though All India Consumer Price Index (General) for the combined  sector  (rural  and  urban  put  together)  for  the  month  of September 2016 has not fallen to a thirteen month low, year on year inflation  rate,  based  on  this  index,  was  the  lowest  (4.39%)  for September  2016  during  the  same  period.  The  interdependence  of Growth of CPI and Index of Industrial Production (IIP) is very limited as the consumer goods have only 29.81% share (in terms of weights) in the basket of IIP. Therefore, it may not be appropriate to infer direct influence of IIP on CPI. (d): The  Government  has  been  taking  steps  to  boost  industrial production and growth to increase private investment, which inter-alia include 'Make in India', initiative under which thrust sectors have been identified to provide a push to manufacturing in India,  'Startup India' initiative and 'Ease of Doing Business'. Steps taken to improve ease of doing  business  include  simplification  and  rationalization  of  existing rules and introduction of information technology, setting up of Investor Facilitation  Cell,  launch  of  e-biz  Portal  and  liberalizing  policy  for industrial  license  for  defence  industries.  Foreign  Direct  Investment (FDI)  policy  and  procedures  have  been  simplified  and  liberalized progressively.  Government  has  taken  up  a  programme  of  building pentagon of industrial corridors across the country with an objective to  provide  developed land and quality infrastructure for development of Industrial Township.

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