Record High: India’s WPI inflation zooms to 12.94% in May (Roundup)

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New Delhi, June 14 | Base effect, along with high transportation fuel cost, lifted India’s annual rate of inflation based on wholesale prices to record high levels in May.

Accordingly, WPI rose by 12.94 per cent in May from a rise of 10.49 per cent in April.

This is the highest rate of WPI inflation in the current series. The previous high mark was observed in April.

The monthly rate of inflation, in May 2020 stood at (-) 3.37 per cent.

On sequential basis, the month over month change in WPI index for May 2021 as compared to April, was 0.76 per cent.

“The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz petrol, diesel, naphtha, furnace oil etc and manufactured products as compared to the corresponding month of the previous year,” the Ministry of Commerce and Industry said in a statement on WPI.

Last year, the Centre had imposed a full nationwide lockdown to curb the spread of the Covid-19 pandemic.

On segment wise basis, prices of primary articles, which constitute 22.62 per cent of the WPI’s total weightage, rose at a slower rate of 9.61 per cent last month from 10.16 per cent in April 2021.

However, WPI food index rose to 8.11 per cent from 7.58 per cent reported for April.

The prices of manufactured items remained at elevated levels with a rise of 10.83 per cent from 9.01 per cent.

On the same note, the prices of fuel and power with a weightage of 13.15 per cent rose 37.61 per cent from 20.94 per cent.

Specifically, diesel prices increased by 66.3 per cent in May against 33.82 per cent during April.

During the same period, petrol prices rose by 62.28 per cent in May from 42.37 per cent.

Similarly, other key consumables such as potato became a bit expensive. Its prices deflated by (-) 27.9 per cent in May against (-) 30.44 per cent in April.

The vegetable prices in May fell (-) 9 per cent against a rise of 9.03 per cent.

In contrast, prices of pulses became dearer on a YoY basis by 12.09 per cent last month from 10.74 per cent.

“As expected, the YoY WPI inflation spiked further to a fresh-series high 12.9 per cent in May 2021, driven by the double whammy of high global commodity prices and a very low base,” ICRA Chief Economist Aditi Nayar.

“All the major sub-indices other than primary food articles, and crude oil and natural gas recorded a rise in their YoY inflation in May 2021 relative to the previous print.”

According to Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, high input costs are severely impacting the price cost margins of the businesses in the difficult time of pandemic coronavirus.

“High commodity prices are posing a serious challenge to the small businessesto operate in the difficult pandemic times, which needs to be addressed immediately through the adequate reforms in the supply chains of high price commodities,” he was quoted as saying in a statement.

“We suggest to do away with the custom duties on the imports of primary raw materials for industrial use for at least current FY 2022 and impose export duties on various primary commodities showing huge price increases, exceeding 50 per cent over the last FY 2021.”

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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