The new index, which would provide a more realistic picture of price rise and its impact on people, would include 685 items against 435 items at present
A new system of inflation measurement, under which price changes of about 250 extra items would be covered, is likely to be rolled out by the government on August 14, reports PTI.
The present monthly inflation measurement system, based on the wholesale price index, reflects the price variations of 435 items.
The number of items would now go up to 685 and include a host of new products, including consumer goods like mobile phones and liquid crystal display (LCD) televisions, sources said.
Dated items such as typewriters and video cassette recorders (VCRs) would not find a place in the new inflation measurement mechanism.
The Committee of Secretaries (CoS), headed by cabinet secretary K M Chandrasekhar, is likely to give a final shape to the new index next week. The base year of the new index would also be changed from 1993-94 to 2004-05.
"A note on the issue has been sent to CoS by the Department of Industrial Policy and Promotion (DIPP)...they may consider this next week," a senior official told PTI.
Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan has also given his approval for the new wholesale price-based index, the official said. "The July inflation data is expected to be released on August 14 with the new base year," he added.
Asked if there would be any variations in the inflation when it switches to the new base year, the official said, "It would be insignificant and less than 1%."
The new index would provide a more realistic picture of price rise and its impact on people, he added.
The regulator’s misguided moves will further alienate retail investors
In the 20...
Going local is a route many advertisers take, but that has not given this auto ad any freshness
Mahindra Renault has launched a new campaign for its entry-level sedan called Logan. 'Logan loves India' is the theme. And so you can already imagine what the commercials might feature: desperately desi situations.
Two TV commercials are on the air. The trick they have pulled is to marry a particular car feature with the so-called 'Indian character' of the brand. The first film features the typical Indian undivided family. And highlights the unique characteristic of us Indians. One chap is flying out somewhere (maybe even from Mumbai to Pune for the weekend!), and the entire khandaan arrives at the airport to see him off. Obviously, this situation is used to demonstrate the ample space in the car. The other film features a typical Bharatiya naari out to shop for that elusive sari. So she visits one shop after another, but can't make up her mind. And all this as the dear hubby cheerfully plays the chauffeur, only because the mileage of Logan doesn't hurt him much. Yes, all very Indian, all very 'hum log'.
Now here's the problem: 'Made for apna desh' is a trick that's pulled by all sorts of brands now and then. Especially when a good idea doesn't strike the mind. Therefore this particular route clearly offers the Logan no freshness… in fact it's quite a tired strategy. But there's a much bigger issue out here: Even if the target consumers enjoy these commercials, and see themselves in the situations, would they want their car to carry the label of 'hamaari gaddi'? Is the Indian-ness of a car a desirable product proposition in this category, especially for a sedan? I mean, desh ki chai, desh ka paan masala, desh ki bank, desh ka cell-phone… even desh ka condom is all very fine and dandy. But a desi sedan? Naaaaah!
Ergo, the Mahindra suits have overlooked a critical consumer insight out here: For a big car, the status value of the brand is above all else in this country. Above mileage, above boot space, above any other feature for that matter. And the desi touch only depreciates the desirability quotient of the car, rather than add to it. So here's the bottom-line: the makers of Logan overlooked a very important 'Indian' thing: We people DO NOT desire local cars, in fact, that's considered down-market. Which is why this is a very risky idea. I think this campaign will do more damage than good to the brand.