<ul><li>The engine and gearbox protection add-on offers coverage for damages to the vehicle’s engine, or gearbox due to waterlogging or hydrostatic lock during the monsoon. </li><li>With a zero-depreciation cover in place, the entire cost of vehicle repair or replacement of damaged auto parts is compensated by the insurance company. </li><li>Securing an add-on to a <keyword id="35490" type="General" weightage="20" keywordseo="car-insurance" source="Orion">car insurance</keyword> policy is possible only during the renewal period. </li></ul>For any car owner, <keyword id="6439882" type="General" weightage="20" keywordseo="monsoons" source="Orion">monsoons</keyword> can be a nightmare, especially if they live in areas prone to heavy rains, floods and water-logging. Most of our cities are susceptible to flooding during the monsoons, and recent instances of flooding in Mumbai, Chennai, Hyderabad and Bangalore are fresh in our minds. In the Bangalore 2022 floods alone, thousands of cars were damaged during the monsoons. In these times, plain vanilla insurance may not suffice. Here are five <keyword id="744230" type="General" weightage="20" keywordseo="add-ons" source="Orion">add-ons</keyword> to your insurance cover that will protect your car during the monsoons. <cmsannotation type="cmsannotation" annotationid="subhead" text="Engine and gearbox protection add-on">Engine and gearbox protection add-on</cmsannotation> During the monsoons, if your car is forced to ply on a flooded road and water damages the engine, you can run up thousands in repair costs. “This add-on offers coverage for damages to the vehicle’s engine or gearbox due to waterlogging or hydrostatic lock (occurs when a car is driven after the engine is filled with water) during the monsoon. It includes the cost of repairing, or replacing the engine parts, which can be quite expensive. This feature is strongly recommended for areas which are prone to flood and waterlogging,” says Parthanil Ghosh, president of retail business at HDFC ERGO General Insurance Company. <cmsannotation type="cmsannotation" annotationid="subhead" text="Zero-depreciation add-on">Zero-depreciation add-on</cmsannotation> Monsoons bring a fair share of challenges with a high risk of accidents and collisions due to slippery roads and hazy visibility. “With zero-depreciation cover in place, the entire cost of vehicle repair or replacement of damaged auto parts is compensated by the insurance company. However, there is 50% coverage for tyres, tubes, and batteries,” says Nitin Kumar, head of motor insurance at Policybazaar.com. <cmsannotation type="cmsannotation" annotationid="subhead" text="24x7 roadside assistance add-on">24x7 roadside assistance add-on</cmsannotation> During the monsoon season, unpredictable weather conditions can frequently lead to vehicle breakdowns, battery failures or flat tires. To avoid being stranded without assistance for extended periods, it is beneficial to consider adding roadside assistance coverage. This additional coverage provides services such as immediate repairs, towing, and arranging for alternative transportation. “This cover offers services like on-the-spot repairs, towing, and arranging for alternative transportation to save the vehicle owner from the inconvenience and heavy financial expenses while being stuck on the road during heavy rainfall,” says Kumar. Cost of add-ons <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td colspan="2" style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">For cars priced ₹14 lakh and above (eg. Hyundai Creta) </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Add-ons </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost (₹) </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zero Depreciation </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9,000-12,000 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Engine Protection Cover </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">500-1,200 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Roadside Assistance </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100-200 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Daily Allowance </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,000-2,000 </td></tr><tr><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Consumables </td><td style="border-left:solid #000000 0.9999974999999999pt;border-right:solid #000000 0.9999974999999999pt;border-bottom:solid #000000 0.9999974999999999pt;border-top:solid #000000 0.9999974999999999pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">500-2,000 </td></tr></tbody></table> Source: Policybazaar.com <cmsannotation type="cmsannotation" annotationid="subhead" text="Consumables add-on">Consumables add-on</cmsannotation> Expenses like brakes, engine oil, nuts and bolts, etc, are typically excluded from a standard comprehensive plan. However, they may drive up the cost of repairs in case of damage due to flood waters. “This add-on is recommended for all geographies as it covers for the cost of consumables like engine oil, nuts, bolts and other similar items that need to be replaced during repairs and are excluded being wear and tear items,” says Ghosh. “For eg., any engine, or gearbox damage on account of impact, or water-related repairs would require oil replacement, which can be paid for under this add-on cover,” says Animesh Das, chief underwriting officer, ACKO. <cmsannotation type="cmsannotation" annotationid="subhead" text="Daily allowance add-on">Daily allowance add-on</cmsannotation> In situations where the car is completely immobilised, or undergoing repairs, this add-on feature provides compensation to cover the expenses of renting an alternative vehicle for a specified number of days, up to a predetermined daily limit. The exact daily limit for reimbursement may differ depending on the insurance company. “However, adding an add-on to a car insurance policy is (only) possible during the renewal period. Insurance providers typically allow policyholders to evaluate and modify their policy coverage during the renewal process,” says Das. During this period, the customer can assess their insurance needs and make any necessary changes or enhancements to their coverage for the next policy term.

Getting monsoon ready – Five add-ons to consider for your car insurance

<img class="gwt-Image" src="/photo/50366781.cms" /> <keyword id="493481" type="UNKNOWN" weightage="100" keywordseo="chennai-floods">Chennai floods</keyword> have proved to be disastrous for a lot of industries and sections of the society, but something good has come out of the worst ever floods to have hit the city. 
 
The floods left behind a pile of submerged cars, which now rot in the garages or are on their way to the scrap yard. Several citizens who lost their cars are now looking out to buy used, which has given a push to the second-hand car market in the city. 
 
"Their insurance claims are taking an inordinate time and people want interim vehicles. This is leading to a jump in preliminary calls and purchases, especially in the lower budgsegments between Rs 2-3 lakh," K Mahalingam, managing TS Mahalingam &amp; Sons, told ET. 
 
Chennai ranks behind National Capital Region, Mumbai, and Bengaluru in used cars businesses. 
 
<a href="http://media.indiatimes.in/media/content/2015/Dec/carss_1449311415.jpg">Image source</a>

Chennai floods increase demand for used vehicles

<img class="gwt-Image" src="/photo/50110106.cms" style="width: 800px; height: 600px;" /> In another instance of a company coming to the aid of Chennai residents who have been bearing the fury of unprecendented rains, <keyword id="2821957" type="UNKNOWN" weightage="80" keywordseo="Coverfox">Coverfox</keyword>, an online <keyword id="35450" type="COMPANY" weightage="80" keywordseo="insurance">insurance</keyword> portal has set-up a dedicated service to help the flood victims of Chennai with their <keyword id="160628" type="UNKNOWN" weightage="80" keywordseo="insurance-claims">insurance claims</keyword>. 
 
The company has deployed a team of customer service representatives who will guide the people on all aspects of getting their claims approved in a quick-and-easy way. The services offered are free of cost and is open to all, irrespective of whether the person has got the insurance done through Coverfox. 
 
The helpline will provide guidance on claim related matters for life, home, car, bike and health insurance. Moreover, Coverfox will also help file the claim and follow up with the insurance company on behalf of the victims like they do for all their customers. 
 
People who have lost their insurance documents in the flood can also approach Coverfox, provide them with their basic details and they’ll help them track and then file their claims with the insurance company too. 
 
the Toll-free number is as follows: 1800-20-99960 
 
Here are some other details- 
 
Web URL: <a href="https://www.coverfox.com/chennai/" target="_BLANK￿￿￿￿">https://www.coverfox.com/chennai/</a> 
Email: <a href="mailto:chennai@coverfox.com">chennai@coverfox.com</a> 
SMS/Whatsapp on: +91 8828 4026 07

An online insurance portal set up a toll-free helpline to help Chennai flood victims with their claims

<img class="gwt-Image" src="/photo/50009008.cms" />It is raining cats and dogs in Chennai and its suburbs. The torrential rains, which are the worst in 100 years, not only crippled normal life but also put IT giants like TCS, Infosys, Cognizant, and the automobile sector in a tight spot. 
 
As rescue operations are on war-footing, IT companies have issues respective codes and guidelines for its employees to ensure seamless work so that clients do not suffer. 
 
For instance, Cognizant sent some of its employees to a different office and Tata Consultancy Services (TCS) held some key resources at its offices only. 
 
Cognizant also held on to few critical employees even though its facilities were operational. 
 
"For employees who have chosen to stay back at our facilities to provide uninterrupted 24x7 support to critical client projects, we have made the necessary accommodation and food arrangements. We have implemented our business continuity plan and are closely monitoring the situation," a Cognizant spokesperson told ET. 
 
HCL Technologies, too, invoked a plan and offered employees a 'flexible work schedule'. 
 
Meanwhile, TCS also made transportation arrangements for its employees. 
 
"We would advise all associates, particularly those who have come by two-wheelers, to avail themselves of TCS transportation of car-pool with your colleagues wherever possible. Any decision on Wednesday's working will be communicated to you later in the day," stated a communique to TCS employees. 
 
Infosys runs a large office close to the Veerapuram lake, which swelled and flooded the IT SEZ, and had to close its office early. 
 
The company released a statement saying, “As a precautionary measure for the safety of our employees due to flooding at the Infosys campuses in Chennai, we have closed our offices early on Tuesday. The Mahindra City campus has seen some flooding due to neighbouring lakes overflowing due to the incessant rain." 
 One of the worst hit sectors was automobile as <keyword id="3157783" type="UNKNOWN" weightage="20" keywordseo="heavy-rains-in-Chennai">heavy rains in Chennai</keyword> delayed production and delivery of vehicles. 
 
Renault Nissan produced fewer cars by about 300 numbers. BMW India, too, had to shut down. 
 
ARMY DEPLOYED FOR HELP 
 
Army and NDRF personnel have been deployed in Chennai after the Tamil Nadu government sought military assistance. The Navy is also on stand-by. 
 
All flight operations at Chennai airport were suspended and 11 foreign and nine domestic flights from the airport were put on hold as no landing or take-off was allowed till late Tuesday evening. 
 
The rains have virtually broken a 100-year-old record with one day's rainfall covering a month's average. 
 
(Image: Indiatimes)

Chennai rains: Heavy downpour batters southern city, IT and automobile cos worst hit

<ul><li>A whopping 94% of the LocalCircles respondents have said that their cities/ districts get waterlogged.</li><li>The situation might worsen in many parts of the country as heavy rainfall is expected in the next few days.</li><li>58% respondents say they "suffer greatly" while 36% indicated their area is “somewhat affected” due to <keyword id="52295" type="General" weightage="80" keywordseo="waterlogging" source="Orion">waterlogging</keyword>.</li></ul> It is the second week of monsoon in most parts of India and this is the time when love of petrichor (pleasant earthy smell that accompanies the first rain) starts turning to amaxophobia (traffic anxiety). Waterlogging becomes a part of the daily struggle and traffic snarls become nightmares. A survey by LocalCircles has revealed that waterlogging is not only a headache for the metros but Tier 2 and Tier 3 cities as well. First up, what might lie in store for you? The India Meteorological Department (IMD) has issued warnings for various parts of the country for the next few days as heavy rainfall is expected across many parts of the country. There is a 'red' alert for Goa and this should translate to heavier traffic. In its daily weather forecast for the metropolis, the IMD Mumbai has predicted "heavy rainfall in the city and suburbs”. Kerala too is battling incessant heavy rainfall and roads are flooded with water levels rising in rivers and dams. In the national capital, Delhi, a ‘yellow’ alert has also been issued, warning of flooding in low-lying areas leading to disruption of traffic on key roads. What the LocalCircles survey has found The survey received over 22,000 responses from citizens located in 293 districts of India. 48% respondents were from Tier 1, 33% from Tier 2 and 19% respondents were from Tier 3, 4 and rural districts. A whopping 94% of the 11,229 answers indicated that most Indian cities/districts get waterlogged during the monsoon season. Out of these, as many as 58% said they "suffer greatly" while 36% indicated their area is “somewhat affected”. Only 3% of respondents indicated satisfaction with the drainage in their city or district. Impact on daily life How does waterlogging impact daily life? Over 11,000 respondents to the survey said that based on the experience of the past couple of years, more time in traffic jams is the prime pain point. This also leads to productivity loss, increased vehicle wear and tear, and more accidents. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Waterlogging Issues </td><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #000000 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Agreed by respondents </td></tr><tr><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Increased time spent in traffic </td><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">84% </td></tr><tr><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Higher maintenance cost </td><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">68% </td></tr><tr><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Higher accident risk </td><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">68% </td></tr><tr><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Productivity loss </td><td style="border-left:solid #cccccc 0.50000025pt;border-right:solid #cccccc 0.50000025pt;border-bottom:solid #cccccc 0.50000025pt;border-top:solid #cccccc 0.50000025pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">54% </td></tr></tbody><tbody></tbody></table> The survey summarises that waterlogging on streets is not only harmful for individuals but also for public property. The videos of the waterlogged being put up on social media by citizens deserve some prompt action perhaps. If not, waterlogging scenes as witnessed repeatedly in Gurugram, Mumbai, Delhi, Chennai and last year in Bengaluru, will only worsen. ALSO READ: <a href="https://www.businessinsider.in/personal-finance/news/five-add-ons-to-consider-for-your-car-insurance-during-the-monsoons/articleshow/101011145.cms" data-type="tilCustomLink" target="_blank">Getting monsoon ready – Five add-ons to consider for your car insurance</a> ALSO SEE: <a href="https://www.businessinsider.in/travel/india/these-are-10-most-beautiful-waterfalls-in-india-during-monsoon/slidelist/101539986.cms" data-type="tilCustomLink" target="_blank">10 Most beautiful waterfalls in India during monsoon</a>

Waterlogging, the great leveller – Not just metros, tier 2 and 3 cities face the menace too

<img class="gwt-Image" src="/photo/50562467.cms" style="width: 800px; height: 600px;" /> 
Have you ever played Santa to an underprivileged kid not for charity, but to see the smile hidden behind the shabby face? Imagine the world doing it at a greater length. This Christmas, start-ups went beyond promoting their business products to playing Santa to hundreds of children, just to see that sparkling smile.
 

	This trend came to the forefront when the country was struck by one of its most devastating disaster, the Chennai floods. From IT companies to telecon to start-ups, everybody came to the rescue of the victims. Startups are increasingly partnering with non-governmental organisations to bridge the gap between non-profit and for-profit enterprises.
 “We do a lot for the corporate. Why not extend the services to the development of those who are neglected and deprived of opportunities?” said Siddharth Gupta, cofounder of <keyword id="2913717" type="UNKNOWN" weightage="100" keywordseo="Treebo">Treebo</keyword> Hotels. 

	Here’s a list for the government and corporate to look up to as an example of how to serve a nation and make it a developed country, in true sense.
 

	Tech-enabled budget hotel start-up, Treebo partnered with a host of NGOs and organised an educational tour for 33 underprivileged children in Bangalore. Their two day stay at a hotel which was accompanied by tours around the city museums and monuments is a one of its kind initiative, named ‘Junior checks-in’.
 

	“We tied up with NGOs because we genuinely feel that travel can contribute to the growth and learning of any individual, particularly kids. We felt that these kids who don’t have all the privileges never get the opportunity to travel and use travel to expand their learning horizon,” said Gupta, adding that they plan to conduct such tours once every quarter.
 Treebo partnered with several NGOs engaged in welfare of underprivileged kids across the country, including <keyword id="828816" type="CITY" weightage="100" keywordseo="Salaam">Salaam</keyword> Baalak Trust, Divya Deepa Charitable Trust, IDEA Foundation, and CHETNA. <keyword id="6368965" type="UNKNOWN" weightage="100" keywordseo="ZoomCar">Zoomcar</keyword>, a self drive car rental company, partnered with Infant Jesus Charity Home, a voluntary, non- government and non- profit organization dedicated to give love and understanding to orphaned and underprivileged children. They took the children for a joy ride on the occasion of Diwali this year, 2015. Zoomcar also partnered with Janagraha and launched #mycleanbangalore encouraging its customers to take a resolution to keep the city clean and green. 

	There are also start-ups which does the work of an NGO by being a for-profit enterprise. Shop For a Cause, online shopping portal tied up with NGOs that promote handicrafts made by tribal women and are promoting them in their online shopping site.
 Talking about Chennai floods, the contribution of the start-ups cannot be mentioned enough. Apart from food delivery and mobile payment start-ups, technology start-ups too came forward to enable technology based relief operations which turned out to create a huge difference. One such Delhi-based data startup <keyword id="2591749" type="UNKNOWN" weightage="100" keywordseo="SocialCops">Socialcops</keyword> is working with NGO Bhumi with relief operations by providing better data, technology and efficiency in identifying the worst hit areas. There are also start-ups that work closely with slums. Through a tie-up with NGO Diwya, which works with kids in Dharavi, Mumbai's biggest slum, <keyword id="2556777" type="UNKNOWN" weightage="100" keywordseo="Timesaverz">Timesaverz</keyword>, on demand home services marketplace, is distributing anything its customers want to give away to these needy children. 

	These start-ups have started a trend which is afst catching up in the startup boom in India. Hope this catches up with every corporates and government of the country too.

	 
	 
	(Image credits: flickr/Damon Lynch)

Startups playing Santa: Lessons to be learned by all!

<img class="gwt-Image" src="/photo/50973484.cms" style="width: 800px; height: 600px;" /> Industrial growth contracted for a second month in December while retail <keyword id="22195" type="COMPANY" weightage="100" keywordseo="Inflation">inflation</keyword> spurted to a 17-month high in January, capturing the dilemma facing <keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="100" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> ahead of the Budget. 
 Any attempt to raise government spending to spur growth could force a delay in further <keyword id="37018" type="UNKNOWN" weightage="100" keywordseo="interest-rate">interest rate</keyword> cuts by the Reserve Bank of India because of rising prices. 
 
The Index of Industrial Production (IIP) fell 1.3 per cent in December after a revised 3.4 per cent decline in November, according to data released by the statistics office on Friday. The November fall had been previously pegged at 3.2 per cent. The slump was partly because of floods in Chennai, a major manufacturing hub. 
 
The separately released consumer price index (CPI) showed retail inflation at 5.69 per cent in January, the highest since August 2014, making for a toxic mix of macro numbers at the start of the new calendar. 
 "As both high-frequency data show deterioration, deterioration, the macroeconomic management of the economy by the government as well as RBI is going to be more difficult ahead, particularly when the <keyword id="6360189" type="COMPANY" weightage="100" keywordseo="Union-Budget">Union Budget</keyword> is due by the end of this month," said Sunil Kumar Sinha, principal economist at India Ratings, a Fitch Ratings associate. 
 The data also highlighted the disconnect between <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> numbers and high-speed indicators such as industrial production and car sales. 
 
Car sales fell 0.72 per cent in January, the first decline 15 months. GDP data released on Monday had showed a growth of 7.3 per cent for the December quarter and an outstanding 12.6 per cent growth in manufacturing. But manufacturing contracted 2.4 per cent in December, according to IIP data. 
 
Manufacturing accounts for 75.5 per cent weight in IIP. "The marginal 0.9 per cent volume growth in the manufacturing sector in Q3FY16 stood in sharp contrast to the growth of value addition revealed by the GDP data (12.6 per cent at constant prices and 10.9 per cent at current prices), which benefitted from lower input costs," said Aditi Nayar, senior economist, ICRA. 
 
The spike in inflation is largely because of food inflation which accelerated to 6.85 per cent in January from 6.4 per cent in the previous month, making a rate cut difficult when RBI reviews monetary policy on April 5. Any relaxation of fiscal targets by the government in the Budget would all but rule out a rate cut. Some policymakers favour a relaxation in the fiscal consolidation target of 3.5 per cent for FY15 to create room for more government spending while meeting pay commission obligations. "Presuming a normal monsoon in 2016 and fiscal consolidation along the previously announced trajectory, ICRA expects CPI inflation to average 5.5 per cent in FY17, allowing for a final 25-basis-points cut in the repo rate during 2016," said Nayar. 
 
Image credit: Indiatimes

You Searched For "chennai flood cars" and got 7 results

Getting monsoon ready – Five add-ons to consider for your car insurance

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Chennai floods increase demand for used vehicles

BI India Bureau

An online insurance portal set up a toll-free helpline to help Chennai flood victims with their claims

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Chennai rains: Heavy downpour batters southern city, IT and automobile cos worst hit

BI India Bureau

Waterlogging, the great leveller – Not just metros, tier 2 and 3 cities face the menace too

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Budget 2016: High inflation and slow industrial growth present obstacles to FM Arun Jaitley

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