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The results of General Election were declared last week concluding the process for electing the 17 th Lok Sabha. Immediately after the results, the previous Lok Sabha was dissolved. The next couple of days will witness several key events such as swearing-in ceremony of the Prime Minister and Cabinet, and the first session of the 17 th Lok Sabha. In the first session, the newly elected MPs will take their oaths, the Speaker of the 17 th Lok Sabha will be elected, and the President will address a joint sitting of Parliament. In this blog, we explain the process and significance of the events that will follow in the days to come. The Bharatiya Janta Party has emerged as the single largest party and the leader of the party will be sworn-in as the Prime Minister. As per Article 75 1 of the Constitution, the other ministers are appointed by the President on the advice of the Prime Minister. As per media reports, swearing-in of the Council of Ministers is scheduled for May 30, The 17 th Lok Sabha will commence its first session in the first week of June. This Committee will be set up after the swearing in of the Council of Ministers. The previous Lok Sabha had commenced on June 4, and its first session had six sitting days June 4, to June 11, Every proceeding of the House is presided by a Speaker. The Office of the Speaker becomes vacant immediately before the first meeting of a new Lok Sabha. Therefore, a temporary speaker, known as the pro-tem Speaker , is chosen from among the newly elected MPs. The office of the pro-tem Speaker ceases to exist when the new Speaker is elected. Once the new government is elected, a list containing the names of the senior-most members of the House is prepared. The seniority is decided by total tenure as a member of either Lok Sabha or Rajya Sabha. The Prime Minister then identifies a Member from the list who acts as the Speaker pro-tem. Any member may give notice of a motion that another Member be chosen as the Speaker of the House. The motions are then moved and voted upon. After the results are announced, the Speaker-elect is felicitated by leaders of all political parties, including the Prime Minister and Leader of the Opposition. From then, the new Speaker takes over the proceedings of the House. An understanding of the Constitution, the Rules of Procedure, and conventions of Parliament is considered a major asset for the Speaker. While this might indicate that a Speaker be one of the senior-most members of the House, this has not always been the norm. There have been occasions in the past where the Speaker of the House was a first-time MP. For instance, Mr. Hegde, the Speaker of the sixth Lok Sabha and Mr. The Speaker is central to the functioning of the legislature. The proceedings of the House are guided by the Rules of Procedure and the final authority for the interpretation and implementation of these rules rests with the Speaker. The Speaker is responsible for regulating the discussion in the House and maintaining order in the House. The Speaker can suspend a sitting member for obstructing the business of the House, or adjourn the House in case of major disorder. The Speaker is also the chair of the Business Advisory Committee, which is responsible for deciding the business of the House and allocating time for the same. The Speaker also chairs the General Purposes Committee and the Rules Committee of the Lok Sabha and appoints the chairpersons of other committees amongst the members. In the past, Speakers have also been instrumental in strengthening the Committee system. Since the Speaker represents the entire House, the office of the Speaker is vested with impartiality and independence. Sanjiva Reddy, the Speaker of the fourth Lok Sabha, formally resigned from his political party as he was of the opinion that the Speaker belongs to the whole House and should therefore remain impartial. As per Article of the Constitution, the Speaker does not exercise vote on any matter being voted upon, in the first instance. Article 87 of the Constitution requires the President to address both Houses at the beginning of the first session after each general election. The President also addresses both the Houses at the beginning of the first session of each year. In the Motion of Thanks, MPs may move amendments to the motion, which are then put to vote. The President of India, Mr. As per the Reserve Bank of India Act RBI , , MPC is required to meet at least four times each year, to discuss the macroeconomic issues in the country, and take policy decisions to address those. This is the second time MPC has conducted an off-cycle meeting in The meeting is scheduled in light of inflation being consistently high for nine consecutive months. In this blog, we discuss what the inflation targeting framework is, examine retail and wholesale prices, and the divergence between them. What is the inflation targeting framework, and what happens if inflation is persistently high? In , Parliament amended the RBI Act, to change the monetary policy, and introduce an inflation targeting framework. This framework prioritises price stability to achieve sustainable GDP growth. Price stability allows investors to confidently invest their money for productive activities, without worrying about it losing value. Price stability also maintains the purchasing power of consumers, i. As per the new framework, the central government, in consultation with RBI sets: i an inflation target, and ii an upper and lower tolerance level for retail inflation. The target and bands are revised every five years. In March , the existing targets were carried forward. Figure 1 : Consumer price index year-on-year; in percentage. If inflation is above or below the prescribed limits for three quarters, RBI must submit a report to the central government explaining why prices have been rising or falling persistently, what will be done to correct that, and an estimate as to when the target will be achieved. The MPC uses tools such as interest rates to control the level of inflation in the economy. One such rate is the policy repo rate, which is the rate at which RBI lends money to banks. An increase in the policy repo rate makes borrowing money more costly, and hence is expected to control inflation by reducing the money supply. Consumer Price Index CPI measures the general prices of goods and services such as food, clothing, and fuel over time. Retail inflation is calculated as the change in the CPI over a period of time. Goods and services such as petrol, food products, health, and education are considered for its calculation, which are assigned different weights See Table 1. Between February and August , the average annual inflation was 6. The rise in prices of subcomponents of the CPI during this period is indicated in Table 2. Table 1 : Assigned weights for the calculation of CPI. Food and beverages. Miscellaneous including petrol and diesel, health, and education. Clothing and footwear. Fuel and light. Pan, tobacco, and intoxications. Subcategory of CPI. Average inflation. Oils and fats. Fuel and Light. Transport and communication. Cereals and products. CPI is not the only index that measures inflation in an economy. A change in wholesale prices reflects wholesale inflation. Table 3 indicates the weights assigned to goods for calculating the WPI. Manufactured goods include metals, chemicals, food products, and textiles. This was driven by the inflation in metals, kerosene and petroleum coke, fruits and vegetables, and palm oil. Table 3 :Assigned weights for the calculation of WPI in percentage. Manufactured products. Primary articles. Fuel and power. All commodities. This is because retail prices include taxes as a percentage of price , while wholesale prices do not. An increase in input prices would lead to higher retail prices after a time lag. Composition of indices. As indicated in Table 2 and 3, the composition of the two indices varies. These are input goods for producing final goods and services such as automobiles, which are included in the CPI. The Ministry of Finance has observed that wholesale prices did not feed into retail prices from March onwards as wholesalers absorbed the rising input costs and did not pass them on to retailers. In August , it noted that as retail prices are rising now, the pass-through may occur. States Legislature Track Vital Stats. Parliament States Discussion Papers. Parliament States Elections. Legislature Track Vital Stats. How is the schedule for first session decided? Who presides over the first session? How is the pro-tem speaker chosen? How is the new Speaker chosen? Composition of indices As indicated in Table 2 and 3, the composition of the two indices varies. Recent Posts 1. A note of gratitude to Mr. Vaghul 2. What is Fuelling Power Sector Losses? First no-confidence motion of the 17th Lok Sabha discussed today 4. Anti-cheating laws for competitive examinations 5. Uttarakhand Assembly concludes 2-day session; 13 Bills introduced and passed.
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By - Dr. By - Mandar V. By - Lynda Gratton, Prof. DMart, Reliance earnings signal downgrades? Choose your reason below and click on the Report button. This will alert our moderators to take action. Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits. Stock analysis. Market Research. Nifty 24, Canara Robeco Infrastructure Direct-Growth. Market Data. More Menu. Auto Auto News. Auto Components. Products Durables. Energy Power. Services Advertising. The Economic Times daily newspaper is available online now. Read Today's Paper. Rate Story. Follow us. Font Size Abc Small. Abc Medium. Abc Large. The cola wars of the seventies and eighties in the US, called after the Cold War due to intense rivalry for market dominance between Coca-Cola and PepsiCo, are now being staged in India. This time its not only a different terrain but also different players on opposing sides. While the cola wars of the US were more about marketing campaigns in which rival products, especially the flagship colas, Coke and Pepsi, found innovative ways to outdo each other, India's cola wars are more about prices, the weapon of choice of Ambani. Finance Financial Literacy i. You Might Also Like:. You can now subscribe to our Economic Times WhatsApp channel. Find this comment offensive? This will alert our moderators to take action Name Reason for reporting: Foul language Slanderous Inciting hatred against a certain community Others. Your Reason has been Reported to the admin. Fill in your details: Will be displayed Will not be displayed Will be displayed. Share this Comment: Post to Twitter. Continue reading with one of these options:. Limited Access. This is an exclusive story available for selected readers only. Worry not. Sign In to Read for Free. Prime Account Detected! It seems like you're already an ETPrime member with Login using your ET Prime credentials to enjoy all member benefits Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits. Sign In now. Already a Member? Avail Offer. Exclusive Student Only Offer. Exclusive invites to Virtual Events with Industry Leaders.
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Indian stock market likely to see profit booking after Lok Sabha elections 2024, says Bernstein
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Indian stock market likely to see profit booking after Lok Sabha elections 2024, says Bernstein
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