| | OCTOBER 20238According to experts, the Wholesale Price Index (WPI) in India is projected to climb in the second half of the current fiscal year, and a prolonged deflationary trend could have an influence on GDP. In September, wholesale inflation remained negative for the sixth consecutive month, at (-) 0.26 percent, due to lower food prices, particularly vegetables. WPI deflation in September is mostly attributable to lower prices for chemicals and chemical goods, mineral oils, textiles, basic metals, and food products compared to the previous year, according to the commerce and industry ministry on Monday."In September, the WPI contracted for the sixth consecutive month, falling 0.3percent year on year (y-o-y), lower than the previous month's contraction of 0.5 percent.""The continued contraction in WPI can be attributed to the deceleration in food prices, as well as the ongoing decline in fuel and manufactured product prices," Sinha said. While the fading impact of a high base may contribute to a "slight increase" in WPI in the second half of the fiscal year, overall WPI inflation is projected to stay modest, according to her.Elevated global crude oil prices, as well as potential hazards to the kharif harvest due to irregular rainfall, pose upside risks to WPI inflation, according to Sinha. While the decrease in fuel prices is welcome news, Abhirup Sarkar, an economist and professor at the Indian Institute of Statistics, told PTI that geopolitical conflicts in Russia and the Middle East could lead to an increase in international oil prices, affecting wholesale price inflation in India Prime Minister Narendra Modi announced on Oct 14 that the governments of India and Sri Lanka are collaborating on fintech sector connectivity by connecting the Unified Payments Interface (UPI) and Lanka Pay. PM Modi announced the plan to link UPI and Lanka Pay via video message while speaking at an event to launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka.Previously, during Sri Lanka President Ranil Wickremesinghe's two-day visit to India, PM Modi and Sri Lanka President Ranil Wickremesinghe signed an agreement on Unified Payments Interface (UPI) acceptance in Sri Lanka.In 2022, the National Payments Corporation of India (NPCI), the umbrella organisation that provides UPI services, will sign an agreement with Lyra, France's fast and secure online payment system. In 2023, UPI and Singapore's PayNow signed an agreement that will allow users in both countries to conduct cross-border transactions. The UPI payment system has already been adopted by the UAE, Bhutan, and Nepal.The National Payments Corporation of India (NPCI)-run UPI reported 10.56 billion transactions in September, a decrease from the 10.58 billion transactions reported in August, when the instant payment mechanism crossed the 10 billion transaction mark for the first time. WPI SPECULATED TO RISE IN ONGOING FISCAL YEARINDIA AND SRI LANKA TO COLLABORATE ON FINTECH CONNECTIVITYIN FOCUSIN FOCUS
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