commercial banks and other parties as well as non-negotiable non-interest bearing rupee
securities issued to the international financial institutions; and (b) external debt comprising loans
from foreign 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 per cent in
July 2017. It averaged 3.4 per cent in 2017-18 (April-Jan) and stood at 5.1 per cent in January
2018.
Inflation measured in terms of Wholesale Price Index (WPI) increased to 1.7 per cent in
2016-17. It averaged 2.9 per cent in 2017-18 (April-Jan) and stood at 2.8 per cent in January
2018.
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 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 emission 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 climate goals.
Provision of finance is embedded in UNFCCC and has also been mentioned in the Paris
Agreement for addressing the adaptation and mitigation needs of developing countries. The
climate actions will have very significant resource implications especially for a country like
India. India’s climate actions have so far been largely financed from domestic resources. India
already has ambitious climate action plans in place. Preliminary domestic requirements to
implement national climate plans add upto more than US$ 2.5 trillion between 2015 and 2030.
Substantial scaling up of these plans would require greater resources. Developing countries like
India are resource constrained and are already spending enormous amounts on climate change.
Implementing climate change mitigation and adaptation actions would require domestic and new
and additional funds from developed countries in view of the resource required and the resource
gap.