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Panagariya in New Delhi

The 16^th Finance Commission (XVI-FC) held its first meeting under the Chairmanship of Dr. Arvind Panagariya in Jawahar Vyapar Bhawan, Janpath, New Delhi. The Chairman and Members were welcomed by Secretary, XVI-FC, Shri Ritvik Ranjanam Pandey and other officials of the Finance Commission.

The XVI-FC discussed its Terms of Reference, as per the order made by the President of India and notified by the Ministry of Finance vide Notification S.O. 5533(E), dated 31^st December, 2023.

The XVI-FC acknowledged the need for wide ranging consultations with various stakeholders, including State Governments, Local Bodies, Ministries of Government of India, and experts.

The XVI-FC recognised that it will be carrying out detailed analytical work and would require to rope in all the expertise that it can garner, including that from leading research organisations, leading think tanks and other organisations working in the area of fiscal federal relations.

The XVI-FC approved the setting-up of its office at Jawahar Vyapar Bhawan on Janpath in New Delhi.

The XVI-FC will make its recommendations available by 31^st October, 2025, covering an award period of 5 years commencing 1^st April, 2026.

The Ministry of Defence (MoD) has made an astounding accomplishment by surpassing the ₹1 Lakh Crore mark in terms of total order value transacted through the Government e-Marketplace (GeM) portal, also known as Gross Merchandise Value (GMV).  Of this, transactions worth around ₹ 45,800 Crore have been awarded in the current financial year. From procurement of general store items like eggs to missile systems and critical defence acquisitions, GeM has helped MoD execute more than 5.47 lakh orders.

“The Ministry is the first central government entity to cross this staggering figure, exemplifying its resolute commitment towards optimising public spending in the Defence sector. This milestone underscores the effort and commitment of the Ministry of Defence to embrace the change and set out as a key propeller of Prime Minister Shri Narendra Modi’s vision of a self-reliant India,” said CEO, GeM, Shri P. K. Singh.

In line with GeM’s core value of maximising social inclusion, 50.7% of the total orders, amounting to ₹60,593 Crore, have been awarded to Micro and Small Enterprises (MSEs) by MoD buyers, driving India’s economy closer to self-reliance.

Since its inception, MoD has been an early adopter of GeM. The immense trust placed in the portal by nearly 19,800 MoD buyers across the country, including remote far flung areas like North-Eastern States, Leh-Ladakh, & various Island Territories, have enabled it to bag this remarkable achievement.

Furthermore, the engagement of Defence PSUs on the GeM platform has not only facilitated procurement but has also facilitated sales, marking a paradigm shift in the procurement landscape.

Through initiatives like demand aggregation modules, GeM continues to deliver cost-effectiveness and efficiency in government transactions. By pooling requirements for similar products across different organisations, GeM is maximizing the benefits of large-volume procurement for buyers like the Ministry of Defence, demonstrating its commitment to driving transformative change in government procurement practices.

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annual rate of inflation based on all India Wholesale Price Index (WPI) number is0.27% (Provisional) for the month of January, 2024(over January, 2023). Positive rate of inflation in January, 2024 is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, minerals, other transport equipment etc. The index numbers and inflation rate for the last three months of all commodities and WPI components are given below:

Note: P: Provisional, *Annual rate of WPI inflation calculated over the corresponding month of previous year

The month over month change in WPI index for the month of January, 2024 stood at -0.33 % as compared to December, 2023. The monthly change in WPI index for last six-month is summarized below:

Note: P: Provisional, #Monthly rate of change, based on month over month (M-o-M) WPI calculated over the preceding month

Month-over-Month Change in Major Groups of WPI:

1. Primary Articles (Weight 22.62%):- The index for this major group declined by 1.04% to 181.0 (provisional) in January, 2024 from 182.9 (provisional) for the month of December, 2023. Prices of Minerals (0.93%) increased in January, 2024 as compared to December, 2023. Prices of Crude Petroleum & Natural Gas (-0.33%), Non-food Articles (-0.49%) and Food Articles (-1.36%) declined in January, 2024 as compared to December, 2023.

2. Fuel & Power (Weight 13.15%): - The index for this major group increased by 0.39% to 154.8 (provisional) in January, 2024 from 154.2 (provisional) for the month of December, 2023. Prices of Electricity (3.30%) increased in January, 2024 as compared to December, 2023. Prices of Coal (-0.37%) and Mineral Oils (-0.56%) declined in January, 2024 as compared to December, 2023.

3. Manufactured Products (Weight 64.23%):- The index for this major group declined by (-0.21%) to 139.8 (provisional) in January, 2024 from 140.1 (provisional) for the month of December, 2023. Out of the 22 NIC two-digit groups for manufactured products, 9 groups witnessed an increase in prices,12 groups have witnessed a decrease in prices and 1 group remained constant. Some of the important groups that showed month-over-month increase in prices are machinery & equipment; textiles; beverages; motor vehicles, trailers & semi-trailers; rubber & plastics products etc. Some of the groups that witnessed a decrease in prices are food products; basic metals; other manufacturing; chemicals and chemical products; other non-metallic mineral products etc. in January, 2024 as compared to December, 2023.

WPI Food Index (Weight 24.38%): The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group has decreased from 179.9 in December, 2023 to 178.0 in January, 2024. The rate of inflation based on WPI Food Index decreased from 5.39% in December, 2023 to 3.79% in January, 2024.

Final Index for the month of November, 2023 (Base Year: 2011-12=100): For the month of November, 2023 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 153.1 and 0.39% respectively. The details of all India Wholesale Price Indices and Rates of Inflation for different commodity groups based on updated figures are at Annex I. The Annual rate of Inflation (Y-o-Y) based on WPI for different commodity groups in the last six months are at Annex II. WPI for different commodity groups in the last six months is at Annex III.