Editorial Snapshot: 18-June-2025

​Easing prices: on the inflation data 

In May, India experienced significant easing in inflation, with retail inflation dropping to a 75-month low of 2.8% and wholesale inflation falling to 0.4%, primarily due to declining food prices and a steep 12.4% contraction in crude oil and natural gas prices. The global oil oversupply and a slowing economy contributed to lower prices, benefiting India, which imports 80% of its oil. The Reserve Bank of India revised its annual inflation forecast down to 3.7% in June from 4% in April, with some analysts predicting June retail inflation could dip to 2%.However, recent developments threaten this trend. On June 13, oil prices surged by 8% after Israel attacked Iran, raising fears of a prolonged conflict and possible disruption in oil shipments through the Strait of Hormuz — a vital channel for India’s oil imports. This could spike shipping costs by up to 50%. Meanwhile, the Indian monsoon, though improving, has been erratic, raising uncertainty about food price stability.Recognizing the volatility, the RBI has shifted its monetary policy stance to ‘neutral,’ indicating flexibility in raising or cutting rates depending on emerging inflationary pressures. The passage highlights the dynamic and unpredictable nature of inflation, driven by geopolitical tensions and climate factors.

​​A free hand: on scientific institutes and GEM norms

The Indian government recently introduced a set of reforms hailed as “revolutionary” by scientists, particularly allowing scientific institutions to bypass the Government e-Marketplace (GEM) — a platform that mandates purchasing from the lowest bidder and prioritizes made-in-India products. While promoted as a boost to research and development, this shift essentially restores the pre-2020 norm, when institutions had autonomy in vendor selection.The need for flexibility in procurement is crucial, especially in scientific research, where even basic materials like sodium chloride vary in purity and significantly impact outcomes. Reproducing experiments often requires exact materials and methods. Budget constraints and rigid procurement policies have previously led to experiments being abandoned or scaled down, causing loss of time and resources.The limitations of the GEM system become more apparent with complex scientific needs such as precision instruments or specialized materials. Scientists have long criticized the “hammer-head” policy of standardization, which treats all equipment purchases as uniform, ignoring India’s lack of a robust industrial base for high-end scientific tools.India’s scientific ministries are uniquely headed by scientists, not career bureaucrats, recognizing that while science can serve state goals, it must be independently nurtured. The recent reform reflects this philosophy — emphasizing that freedom and discretion in scientific procurement are essential to meaningful research.

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