Lok Sabha Question No. 17 (STARRED), answered on 2025-07-21
Subject: Impact of Rising Inflation
Ministry: FINANCE
Asked by: Shri Zia Ur Rehman

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. *17

TO BE ANSWERED ON 21.07.2025/ Ashadha 30, 1947 (Saka)

## IMPACT OF RISING INFLATION

## *17. SHRI ZIA UR REHMAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken cognizance of the impact of rising inflation on employment levels and household incomes, particularly among the poor and youth;
- (b) if so, the details thereof; and
- (c) the measures taken by the Government to control inflation and generate sustainable employment opportunities across sectors?

## ANSWER

THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED QUESTION NO.17 RAISED BY SHRI ZIA UR REHMAN FOR 21 st  JULY, 2025 ON 'IMPACT OF RISING INFLATION'

(a)  to  (c):  The  Government has undertaken a series of measures to control inflation, while fostering sustainable employment and improving household incomes, particularly among the poor and the youth. These include, inter alia, the augmentation of buffer stocks for essential food items, strategic sales of procured grains in the open market, facilitation of imports and export  curbs  during  periods  of  short  supply,  implementation  of  stock  limits  to  push  more supplies  of  select  commodities  into  the  market,  retail  sales  of  select  food  items  under  the Bharat  brand  at  subsidised  rates,  and  above  all,  distribution  of  food  grains  free  of  cost  to around  81  crore  beneficiaries  under  the  National  Food  Security  Act  and  increasing  the disposable income of individuals by exempting annual incomes up to ₹ 12 lakh (and ₹ 12.75 lakh for salaried individuals with standard deduction) from income tax. As a consequence of various measures, average retail inflation rate (year on year) measured by the Consumer Price Index (CPI) declined from 5.4 per cent in 2023-24 to 4.6 per cent in 2024-25, the lowest in the last 6 years. Furthermore, CPI declined to an average of 2.7 per cent in the first quarter of 2025-26, ending the quarter at 2.1 per cent in June 2025. The deceleration in food inflation continued through Q1 of 2025-26 and reached a negative territory with (-) 1.06 per cent in June 2025, lowest after January 2019.

In  addition  to  inflation  control  measures,  various  steps  have  been  taken  to  expand  job opportunities through various employment generation and skill development programs such as  Prime  Minister's  Employment  Generation  Programme,  Aatmanirbhar  Bharat  Rojgar Yojana,  Employment  Linked  Incentives  to  industries,  National  Urban/Rural  Livelihoods Missions, Mahatma Gandhi National Rural Employment Guarantee Scheme, Kaushal Vikas Yojanas  etc.  Further,  'Rural  Prosperity  and  Resilience'  programme  was  announced  in  the Union  Budget  2025-26  to address underemployment  in  agriculture through skilling, investment and technology, focusing on women, youth, marginal farmers etc. Consequent to various measures, the all-India annual unemployment rate for individuals aged 15 years and above (as per usual status) declined from 6 per cent in 2017-18 to 3.2 per cent in 2023-24.

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