ANSWEERS:

Q1)Factors such as urbanization changing demographic

pattern, rise in income level, constant product upgradation,
improved distribution network, reasonably low entry barriers
and minimal regulatory interference from the government
are some of the key drivers influencing the growth of the
sector. The industry has limited control on the prices owing
to high competitive pressure. However, through operating
efficiencies and healthy demand scenario the industry
players have been able to maintain their margins at decent
level.
1. The proposed hike in excise duty would negatively impact
the demand for high end consumer durables which would
consequently impact the revenues and hence profit
margins of the concerned companies.
Impact on aggregate demand:
Change in expectations Current spending is affected by
anticipated income and inflation.
Changes in monetary policy Changes in interest rates
Changes in fiscal policy Fiscal policies refers to changes
in government spending, welfare benefits and taxation,
and the amount that the governments borrows.
Economic events in the international economy
International factors such as the exchange rate and
foreign income
Changes in household wealth It is the value of assets
owned
Change in the supply of credit
Q2) Fuel prices , food items and non food items are the items
which influenced the wholesale price index .
Q3) Agricultural sectors performed well in the 2011-12, with a
growth of 2.5% in Agro-based forecasts for that particular year
(favouring rural areas).

Food inflation had come down significantly, thus the major

contributor to the WPI inflation that year was non-food
manufacturing products (favouring rural areas).
Tightening of monetary policy owing to slowing investment
and industrial activity (activities related to urban areas).
Q4) Private savings:
Deposit with banks
Have been showing an increasing trend in the full fiscal
years from 201112, 2012-13, 2013-14
Variation in the fiscal year so far has however shown a
decreasing trend.
Public savings:
Currency with public
It has shown a decreasing trend in the fiscal years so far.
However, in the full fiscal years, from 2011-12 to 2012-13,
it has shown an increasing trend, but from 2012-13, 201314, it has shown a decreasing trend.
Q5) As power the data,the balance of trade has always been on
the negative side.Which means the negative difference of the
value of goods and service exported out of the country less the
value of goodfs and services imported in to the country.A
balance of trade deflect is the offiial term for negative net
export that occurs when imports exceeds exports.A balance of
trade deflects is also termed as unfavaourable balance of trade
because results i n net out flow of momentary payment from
the the domestics economics to the foregine sector, which
tends to to be bad for a country.