THE HINDU Editorial Vocabulary- December 15, 2017- Topic 1

Revival risks: On economy woes

The Centre’s bid to dispel the pall of gloom over the economy has been helped in recent weeks by a sovereign rating upgrade from a global agency and a sharp improvement in India’s rank on a World Bank index for ease of doing business. More significantly, the economy clocked a growth of 6.3% in the second quarter of this year, after slowing for at least four quarters. 

But official data for the third quarter (October to December) so far suggest that the economy is still not entirely out of the woods and fresh headwinds, such as rising oil prices, could upset the fragile recovery. Manufacturing growth, driven by restocking by producers after the rollout of the goods and services tax, was a major factor in the second quarter growth pick-up. After two months of robust 4%-plus growth, industrial activity however slipped in October, with the Index of Industrial Production reflecting just 2.2% growth. October was a festive month but consumer durables production contracted by nearly 7%, mining was virtually stagnant, and manufacturing growth moderated to 2.5% from 3.8% last year. This coincides with exporters seeing a 1.1% slump in shipments in October, after growing at an average of over 13% in the second quarter. It is also borne out by the nearly 10% drop in GST collections that month compared to September. The IIP has now grown just 2.5% in the first seven months of 2017-18, compared to 5.5% in the same period last fiscal.

If the spectre of slower growth with weak exports at a time when global trade is recovering is not worrying enough, with job creation still to pick up, the latest inflation data set too is cause for concern. Prices at the consumer level rose at the fastest pace in 15 months this November, with inflation touching 4.88%, up from 3.6% in October and just 1.5% in June. This reflects a broad-based price rise under way, although it is led by fuel inflation (at 7.2%, from 6.1% a month ago) and food inflation (4.4%, from 1.9% in October). Within food, rising onion and tomato prices pushed vegetable inflation to a 16-month high of 22.5%; inflation in egg prices quickened from 0.8% in October to 8% in November. While some of this food inflation could wane in the coming months, there is greater concern about the rise in core inflation (excluding food and fuel) and inflation imported through high global prices. On Tuesday, oil prices breached the $65 a barrel mark for the first time in over two years. The government faces difficult choices. Slashing fuel taxes could calm inflation, but it would hit revenue collections that are already uncertain owing to GST deadline extensions. Not doing so would leave less room for the central bank to lower interest rates. As the Economic Survey said, oil at $60-65 could hit consumption and public investment and dent private investment further. That is not a path to a sustained revival.

Vocabulary

Dispel: make a doubt, feeling, or belief disappear.

Example: The brightness of the day did nothing to dispel Elaine's dejection

Synonyms: banish, eliminate, drive away/off, get rid of, relieve

Gloom: a state of depression or despondency.

Example: A year of economic gloom for the car industry

Synonyms: despondency, depression, dejection, melancholy, melancholia

Sovereign: possessing supreme or ultimate power.

Example: In modern democracies the people's will is in theory sovereign

Synonyms: supreme, absolute, unlimited, unrestricted, boundless, ultimate

Upgrade: raise something to a higher standard

Example: The cost of upgrading each workstation is around $300

Synonyms: improve, modernize, update, bring up to date, make better

Improvement: an example or instance of improving or being improved.

Example: An improvement in East–West relations

Synonyms: advance, development, upgrade, refinement, renovation

Headwind: a wind blowing from directly in front, opposing forward motion.

Example: With light headwinds and a strong southerly current, the crew had to work hard as we tacked, staying close to shore.

Fragile: easily broken or damaged.

Example: Tourists also damage the fragile ecosystem by dumping plastic waste and driving over the grasslands.

Synonyms: breakable, easily broken, delicate, dainty, fine

Robust: strong and healthy.

Example: The Caplans are a robust, healthy lot

Synonyms: strong, vigorous, sturdy, tough, powerful, solid, muscular

Contract: decrease in size, number, or range.

Example: Glass contracts as it cools

Synonyms: shrink, get smaller, decrease, diminish, reduce

Stagnant: having no current or flow and often having an unpleasant smell as a consequence.

Example: A stagnant ditch

Synonyms: still, motionless, static, stationary, standing, dead, slack, foul

Quicken: make or become faster or quicker.

Example: She quickened her pace, desperate to escape

Synonyms: speed up, accelerate, step up, hasten, hurry

Concern: a matter of interest or importance to someone.

Example: Oil reserves are the concern of the Energy Department

Synonyms: responsibility, business, affair, charge, duty, job, province

Uncertain: not able to be relied on.

Example: An uncertain future

Synonyms: unknown, debatable, open to question, in doubt, undetermined

Revival: an improvement in the condition or strength of something.

Example: A revival in the fortunes of the party

Synonyms: improvement, recovery, rallying, picking up, amelioration, turn for the better

Consumption: the using up of a resource.

Example: Industrialized countries should reduce their energy consumption

Synonyms: use, using up, utilization, expending, depletion, waste, squandering