Prime Minister Modi’s Ujjwala Yojana Has Helped Lower Rural Inflation: SBI Report
Prime Minister Modi’s Ujjwala Yojana Has Helped Lower Rural Inflation: SBI Report Prime Minister Modi distributing connections in Uttar Pradesh. (PTI)

Pradhan Mantri Ujjwala Yojana has helped reduce inflation in rural areas, State Bank of India (SBI) has said in its latest Ecowrap report.

SBI’s report analysed the impact of PMUY on rural fuel and light consumer price index inflation in 10 states that accounted for 95.3 per cent of the total connections distributed under the scheme. According to the report, data shows that the states where more number of connections were distributed, the rural fuel and light inflation has significantly declined or stayed flat since the launch of the scheme.

According to the Economic Times, non-discretionary inflation in rural areas, which is essentially food, fuel and housing inflation, has almost halved to 3.05 per cent in October 2017 since the launch of PMUY in 2016. Non-discretionary inflation in rural areas was 6.44 per cent in May 2016.

“While the crash in food prices has been one of the reasons, we believe such decline is also fueled by the big impetus that has been given to PMUY that almost coincided with the beginning of such decline (launched in May 2016)” the Economic Times quoted State Bank of India chief economic advisor S K Ghosh as saying.

The report also notes that the prices of discretionary consumption in rural areas has been on a declining trend since 2016.

The scheme, launched by the Prime Minister, is aimed at empowering millions of poor women in our country who are forced to inhale unhealthy emissions from burning coal, wood and other unclean fuels while cooking.

Under this scheme, more than 3 crore Liquefied Petroleum Gas connections have been distributed across the country, the report noted.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber