Spiralling Inflation is Modi Government’s New Year Gift

  • Randeep Singh Surjewala

Happy New Year-2022 to all of you! May your new year be full of happiness, prosperity, progress, and enthusiasm. On every New Year, we used to wish each other happiness and prosperity, but can you imagine on what our government is giving us on the New Year for our happiness and prosperity? What is it wishing for us? So, we tell, like the last seven years, this year also the gift given to the people of the country by the Modi government is - ‘Gift of Inflation’.

On the first day of 2022, Modi Government gave a New Year gift to all of us in the form of new inflation for the year 2022. This new inflation is coupled with a consistently high unemployment rate of almost 10 percent for most part of the year in 2021. Whether we should say ‘THANK YOU, MODI Ji’ for this or not?

The inflationary pressure is mounting, Wholesale Price Index (WPI) was 14.23% in November 2021, (highest in last 10 years) and its impact is likely to be felt more imminently in the upcoming New Year. So, likewise, as we usher in the new era and get prepared to spend more on all items, be it the daily use items/consumer goods or steel, cement and electrical items or some luxurious item. From buying daily use clothes and footwear to withdrawing our own money from ATMs or using the Toll Roads, everything is going to be expensive.

  1. Have a look at the 13 ill-effects on our lives due to the “Modi-made inflation” from January, 2022:
  2. Clothes to get more expensive -

Finished goods such as apparel and textiles are all set to get more expensive from January 1, 2022, because the BJP-led Union government is going to increase the GST on such items from 5% to 12%. The GST rate on apparel costing up to Rs. 1,000 per piece has been hiked from 5% to 12%. The same hike is also going to increase the rates of textiles, including woven fabrics, shirt-pant &synthetic yarn, pile fabrics, blankets, tents, and accessories such as tablecloths or serviettes, rugs and tapestries.

Due to the opposition of the Congress Party and the Congress-ruled states and seeing the upcoming elections in 5 states, now this increase has been hurriedly postponed till February 28. This date may get extended by 1 month if elections are delayed. Please note that the decision was not reversed. This tax will be imposed again on the people as soon as the elections are over. The impact of the above is

• Over 15 lakh jobs in main and ancillary units of textile industry would be lost because of the above GST increase. • Over 80 percent fabric production in the country is done by the unorganized sector. Raising the GST on fabrics to 12% will hurt the business and employment opportunities in power loom and handloom weavers. • Due to extraordinary price increases in raw materials like yarn, packing materials, and freight, shortly the market is likely to experience a 15-20% price increase in clothing. • According to the garment industry, 85 percent of the clothes sold are priced below Rs. 1,000.

  1. The textile dyeing or printing job services covered under the Chapter 50 to 63 of GST Act will attract 12 percent GST (registered entities) or 18percent GST (unregistered entities).
  2. Footwear to get more expensive
    The GST rate on footwear (costing up to Rs. 1,000 per pair) has also been hiked from 5% to 12%. It is an attack on poor and common people as it will further strain their household budgets.
  3. “Cloud kitchens” have been brought under the Food delivery services and restaurant service, they will now attract 5 per cent GST.
  4. FMCG (Fast Moving Consumer Goods) Prices will increase up to 10%. The price of FMCG consumer goods will increase by 6 to 10%. Be it Dabur, Parle, Britannia, Marico or other companies, everyone is raising the FMCG prices from biscuits to soaps.
  5. Withdrawing our own money from ATM will be expensive RBI has approved to increase the charge on cash withdrawal after free transactions. According to RBI, banks will now charge Rs. 21 per transaction from their customers after the free transaction.
  6. Booking Auto Rides Online to Cost More Be prepared for auto rickshaw rides booked through app aggregators like Ola and Uber to get costlier. The Government will levy a 5% GST on auto rides booked online from January 1, ending an existing exemption.
  7. Buying a car or automobile will be expensive In the New Year 2022, we have to pay a higher price to buy cars from almost all car and auto companies, including Maruti Suzuki, Renault, Honda, Toyota, and Skoda. Auto companies will increase prices due to an increase in cost. Tata Motors had already announced to hike commercial vehicle prices by 2.5% from January 1, 2022.
  8. Cement prices to rise to Rs.400 per bag - In 2021, cement prices increased by 15% - 20%. The situation is such that a 50 kg bag of cement, which was sold for Rs. 330 / 340 a year ago is now in the process of crossing Rs. 400.
  9. The price of steel soaring to new highs - Steel companies increased steel prices by 215 percent between year 2020 and December 2021. In November 2021 alone, steel companies raised steel prices by Rs. 3,000- Rs.3,500 per tonne. The Reason: Competition is over in the steel industry, and now it is in the hands of a handful of companies - Tata Steel, Jindal Steel, Arcelor Mittal Steel. There is a silent consent of the Modi government in this regard, and while the prices are rising, and people are suffering, this trend is going to continue in 2022 too.
  10. India Post Payment Bank increased the charge - India Post Payment Bank (IPPB) account holders will now have to pay a charge for withdrawing and depositing cash over a specific limit from January 1. Cash withdrawal up to 4 times every month from Basic Savings Account will be free. After this, 0.50% charge will have to be paid on every withdrawal.
  11. GST has become applicable on the services rendered by the club or association to its members from the retrospective date of July 01, 2017.
  12. Now 5 percent GST will be levied on nursery children’s drawing tool kit. Now Learning-kit books for pre-school children will draw a 5 per cent GST rate. Remember that there is no GST on books. But if the drawing sheets that are taught to children are not in the form of a binder, then strangely enough, 5 percent GST will be levied on it. Thank you, Modi ji, for the above new year gifts.

Let us not forget on how the Modi government has looted us by imposing high inflation in the last seven years, after coming to power in 2014: • Petrol of Rs. 71 per Ltr. and Diesel of Rs. 56 per Ltr. has almost touched Rs.100 per Ltr. • Cooking gas cylinder of Rs. 400 has crossed Rs. 1000. • Cooking oil has increased from Rs. 90 to Rs. 200 to Rs. 250 per Ltr. • Lentil Prices have crossed Rs. 150 per kg from Rs. 60 per kg. • People can’t even drink a cup of tea comfortably. Tea prices have now increased to Rs. 300 per kg to Rs. 400 per kg from Rs. 120 per kg. Not only this, even the price of salt has also increased from Rs.12 per kg to Rs. 22 per kg. Lentil, gram, kidney beans, tomatoes, onions, vegetables - every food item is getting away from the plate of the poor. Now the people of the country are saying: - • If there is Modi, then there is inflation. • Modi government is synonymous with inflation. • Both Modi and inflation are harmful to the country.

Based on Press Statement of Randeep Singh Surjewala