Elections are underway in five crucial states, inflation is rising, and the country facing the second wave of the pandemic that has hurt incomes and livelihoods. A crucial policy decision on cutting the administered interest rate on small savings ought to have been thought through well.
In terms of current prices, GDP for Q3 is estimated to have gone up by a credible 4.3%, over the like period in the previous year. It does reflect higher value addition, read dearer prices, in sectors like agriculture, given rigidities in supply amidst pandemic-imposed restrictions in delivery and logistics.
The government should stop trying to suppress the voice of dissent through arrests, charges of sedition or causing enmity between communities and arm-twisting of social media platforms. And the Apex Court should pursue contempt charges, not against those who make open criticism of its rulings, but against the lower judiciary that subverts the constitutional order.
The RBI’s policies on maintaining high liquidity to fuel recovery, keeping a Targeted Long Term Repo window open is most sensible. It is unlikely to be used much, though, considering the oodles of liquidity being created by the RBI’s attempt to keep the exchange rate reasonably stable, even as foreign capital floods in, as confidence returns to mature markets.
While valuing his officers’ inputs on reforms to steer the economy, Jaswant Singh had an ear to the ground – be it putting more money in homemakers’ purses or being responsive to industry’s woes. He was quick at decision making.
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.
As for manufactures, which account for over 77% weight in the industrial index, production has contracted and posted minus 3.9% growth. The sharp contraction in automobile production, with the output of motor vehicles, trailers and semi-trailers declining by minus 14.9 % y-o-y has clearly adversely affected production.
It is the duty of all concerned to not just maintain peace but also to work for sustainable unity.
For the polity, too, an Opposition staging an extinction rebellion is certainly good news. A healthy democracy needs an Opposition that is not a pushover.
While Banerjee got his PhD from Harvard, he did his Bachelor’s in economics from Presidency, Calcutta and his Master’s from JNU.
What has troubled some critics is that he is a public sympathiser of Yugoslavian and Serbian war criminal Slobodan Miloševic.
John Goodenough, Stanley Whittingham, and Akira Yoshino won the 2019 Nobel Prize for Chemistry for the development of lithium-ion batteries.
By refusing to cut rate by 35 bps or more the RBI wants to make it clear that liquidity availability is not the binding constraint on growth.
For Trump, Howdy Modi was a golden opportunity to woo a vital segment of American voters.
A lower rate, comparable with Asian peers, and sans any exemptions, will make large Indian cos more competitive.
The export sops announced are welcome. But they would take time to kick in and boost exports.
Indian Space Research Organisation will analyse the mishap to identify what went wrong and rectify the defect that caused it.
It is in the interest of the Indian economy to have large banks that can lend to large companies, given the greater segmentation of credit now.
Essentially, the committee has decided to keep the RBI’s revaluation reserves out of funds that can be used for transfer to any other account.
The reform of taxman-taxpayer interface, deploying technology and eliminating direct contact, is most welcome.
While Singh reiterated India's continuation of the 'no first use' policy, Singh's comment comes at a time when the Indian government has been seen to conduct 'radical' moves.
The most notable feature of Narendra Modi’s sixth speech from the ramparts of the Red Fort is an absence: an enemy to attack.
Sonia Gandhi values counsel, and patient survival informs her action, rather than impetuous entitlement.
RBI shares the general concern about slowing growth and would like to do its bit to lift spirits and get the economy moving.
India seems to have well mastered supercritical technology configured for domestic coal.
Whereas coal production went up in June by only 3.2%, electricity generation has gone up by a respectable 7.3%.
With this bill, Parliament righted a wrong it had inflicted on its people more than two decades earlier.
LIC's value will also help put govt finances in better shape & create a level playing field in insurance.
Instead of tut-tutting his cheeky comment many parliamentarians may have gone into an overdrive, using the occasion to display their 'pro-woman' credentials.
The Central Groundwater Board is slated to determine the mechanism design for the levy and its extent, range and quantum.
The Supreme Court's cancellation of the registration of real estate major is being touted as a relief for home buyers.
Any nation’s power dynamics in global geopolitics is essential to how that nation’s society engages in the world. Movies and the Soft Power of a nation are inextricably linked! If the art of a nation is aligned to the national objectives with respect to international relations, then that art will get an additional push in
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