The government needs to fix the banks and create a functional bond market. This alone can raise the rate of investment. Gross fixed capital formation as a share of GDP was down to 26% in Q4 of 2019-20, and 26.9% for the year as a whole. Without raising it by six percentage points of GDP, India cannot shed its low growth trap.
While the monetary policy measures announced today are certainly necessary, they can hardly be deemed to be sufficient, in the face of severely weakened demand conditions economy-wide, following two entire months of severe economic lockdown.
Liquidity for power utilities, subject to state government guarantees, will ensure that power generation is not shut down. Of course, the power sector cannot be redeemed without a change in the political culture of patronising power theft and open-ended giveaways.
The way forward is to policy design a vibrant market for ore, so that steel and other metal producers face no uncertainty in procuring minerals and other raw materials at competitive rates.
The government is making a hash of loosening restrictions while extending the lockdown.
All the regulatory measures are welcome and will help companies and real estate developers. The liquidity measures have a more mixed import.
The IMD projection says rainfall is likely to be 100% of the Long Period Average (LPA) precipitation for the country as a whole, with a model error of plus or minus 5%. But note that over the years there has been wide variability in monsoon rainfall patterns across regions.
It is welcome that the Prime Minister has restricted extension of the all-India lockdown to six more days after the original deadline of April 20th. The early lockdown has probably saved thousands of lives and helped contain the spread of the disease.
The central bank is not directly purchasing corporate bonds of large enterprises and major non-bank finance companies (NBFCs), as is par for the course in the mature markets. Instead, RBI has announced long-term repurchase obligations or repo in government securities with banks, so that the latter can then use the liquidity available to subscribe to corporate bonds or commercial paper or debentures.
It is for the voters to punish defectors by defeating them, their backers or proxies in by-polls. If voters do not care, and allow such shenanigans to proceed apace, political parties would try to grab power by inducing MLAs to defect.
The way ahead is to step-up recharge of aquifers and groundwater resources, even as we better allocate resources for surface irrigation systems and their maintenance. We are increasingly dependent on groundwater for irrigation, which is clearly unsustainable. But the maintenance and upkeep of surface irrigation systems is also neglected across states.
Does it hold out the definite prospect of reversing the growth slowdown? It does not. Does it fix the gaps in financial plumbing that prevent finance from being mediated to viable infrastructure projects? Not quite. A market for corporate bonds is India’s prime requirement now, and that remains a work in eternal progress.
Microsoft has come a long way since then and even became the world’s most valued company. The Survey does not hold out a happy story.
Civil Aviation minister Puri advised other airlines to follow suit. Air India, GoAir and SpiceJet followed suit — if the minister had asked them to do likewise, they would have done likewise — no matter Kamra did not misbehave on their flights. Nor did they convene a meeting of their internal committees that are supposed to ponder over a complaint.
At the broader level, the fact that the students will be selected through a national test is likely to help schools across the country to meet certain basic curriculum and teaching standards. The inclusion of senior citizens in the scheme is a recognition of the untapped capacity for contribution of this segment of the population.
The Supreme Court’s verdict that the Internet is a part of Article 19 – key to providing India’s citizenry with the ‘basic freedoms’ that include the freedom of expression – finally calls a spade a spade, and has demanded that Internet service be restored in Kashmir for all essential services.
The time has come for the government to shed its obsession about fiscal deficit targets and borrow more from the market, both to compensate the states for their shortfall in GST collections and to meet its own expenditure commitments. India still has deep reserves of economic resilience and it is necessary to avoid any self-defeating talk of recession.
The levies, charges and mounting dues would essentially financially cripple and may even bankrupt the leading service providers, and have wholly-avoidable negative effects and signals much beyond the telecom sector itself. The Cabinet needs to purposefully rationalise central levies and charges on telecom operators for the greater national good.
The latest inflation numbers suggest that retail headline inflation, read the overall rise in consumer prices, has gone up beyond the 4% target set up Monetary Policy Committee (MPC). The MPC is mandated to policy-induce a narrow 4-6% range for the retail inflation rate. The CPI has risen at the fastest rate since June last year.
The 14 MLAs who quit from Congress and the three from the Janata Dal (Secular) last July, leading to the fall of the JD(S)-Congress government, may have reasons other than pure disagreement and/or disenchantment with the way their own parties were going about governing and such things. Now, it’s for the bypolls on December 5, to decide the fate of the 17.
Water is a scarce commodity. It is not just needed for drinking purposes, but most importantly for agriculture. If you lose water or don’t have freshwater resources, you cannot have any crops. There is a trade going on – often unbeknownst to many countries which are the victims of these surreptitious flows – where some
Soft power is an important ingredient for the geopolitical strategy of any country. How do countries do it and why is soft power so critical?
The real utility of Moral ethics is for the times when one faces choices that are repugnant. In normal times, there is not much morality to exercise. Western moral constructs need crutches of theories and pre-determined ideas to make decisions when situations are not straight-forward. Morality, therefore, depends on edicts and commandments and philosophical pronouncements.
Anti-CAA violence was unprecedented in India. It was well-orchestrated and pre-planned. The chargesheets recently filed by Delhi Police validate that!
America is burning today because one half of America believes they don’t matter. And they are crying as their young men are killed and all they are saying is that they matter – that Black lives matter… too! That is the legitimate part of the situation. But not the whole thing. Over 50 Secret Service
The Libya war is raging as we speak. The oil rich country is now in a big mess. And, it is becoming the main war theater in the Middle-East along with Syria. The way the geopolitical chess is being played, this promises to be another Afghanistan. Read Af-Pak historical account. Libya war – the two
The Facebook Oversight Board is a group constituted by the Social Media giant to moderate content on Instagram and FB. It is loaded with Anti-Hindu and Islamist people.
This is the stuff of spy thriller stories. In a remarkable intelligence victory, Indian forces neutralized a 2019 Pulwama style attack once again in Pulwama thus preventing a major bloodbath in a CRPF convoy of over 400 personnel. On 14 February 2019, a CRPF convoy was attacked by Adil Ahmad Dar of Jaish-e-Mohammed killing 40
Work from Home arrangements have come to the fore during the COVID-19 lockdown. Are they good? How is productivity impact? Read about it.
There are many crimes that just shock you. Nirbhaya’s case was one such incident. In that incident, it was a juvenile, Mohammad Afroz, who had been the most brutal to the girl. Shockingly, he went scott-free because he pleaded as a juvenile based on the certificate from his Madras. While the rest of the rapists