PATHWAYS TO A MORE RESILIENT ECONOMY
7 radical ideas emerging to build a more resilient economy “De-Growth”: The obsession with GDP as the supreme goal of progress has been challenged often- Goals for human progress must be reset. “Sufficient boundaries”: Boundaries impede flows of trade, finance, and people- removing boundaries is good for global growth. However, since countries are at different stages of […]
BOOST WAGES TO STIMULATE INDIA’S GROWTH
Why in news? One of the moving images from today’s India is of migrant workers suddenly feeling desolate in their places of work and desperate to return to their villages, in the aftermath of the COVID-19 outbreak. We need to plan for an economic growth driven by rising. Patchy data As per 2018 data: Out […]
SECOND TRANCHE OF ECONOMIC STIMULUS PACKAGE
Why in news? The major focus of the second tranche of the economic stimulus package announced on 14th May 2020 is to provide free food grains for the next two months to migrant workers who do not have ration cards. The Centre will help create affordable rental housing for the urban poor and provide relief worth […]
NEW MSME DEFINITION WITHOUT AMENDING LAWS
Why in news? The definition of Micro, Small and Medium Enterprises (MSMEs) was redefined on the basis of investment limit and turnover size. What has changed in the Definition of MSMEs? Earlier, the MSMEs were defined on the basis of investments put in, now the revised definitions will also include turnover of the company. There […]
MAJOR STIMULUS PACKAGE FOR MSMES, TDS AND TCS REDUCED
Why in news? The Union Finance Minister on 13th May 2020, announced a Rs. 3 lakh crore collateral free loan scheme for businesses, especially micro, small and medium enterprises (MSMEs), as part of a Rs. 20-lakh-crore economic stimulus package to deal with the COVID-19 pandemic. The rates of tax deduction at source (TDS) and tax collection […]
GOVT. IDENTIFIES SECTORS FOR TAX SOPS
Why in news? The government has identified close to a dozen sectors, ranging from capital goods, defence, pharma and electronics to labour-intensive ones such as textiles and food where it is considering proposals for tax concessions. It is also pushing for land and procedural reforms to attract investment as part of a goal to be […]
BOND YIELDS RISE AS GOVT. EXPANDS BORROWING PLAN
Why in news? The yield on the most-traded 10-year government bond spiked 20 bps (basis points) on 11th May 2020, after the government announced it would increase its market borrowings by more than ₹4 lakh crore for FY21. Intraday, yield rose 27 bps, the sharpest intraday surge since February 2017. As per the new revised FY21 […]
NO INCREASE IN LEASE RENT OF SEZ UNITS
Why in news? The government on 11th May said the lease rent for units in the government-owned Special Economic Zones (SEZs) will not be increased for 2020-21 due to the COVID-19 pandemic. This move which will provide relief to these facilities in SEZ. Details The commerce and industry ministry said that after consulting the proposal with […]
INDIA’S UNEMPLOYMENT RATE DROPPED: CMIE
Why in news? India’s unemployment rate dropped to 23.97% on May 10 from 27.11% on May 3, as the government lifted some curbs on economic activity, including farming, after a month-long lockdown. Unemployment Rate Survey results: Urban The urban jobless rate, on the other hand, declined more modestly, underlining the fact that cities are still […]
CENTRE PLANS TO CHECK CHINESE FPI FLOWS
Why in news? After foreign direct investment (FDI), the government is now looking to clamp down on unbridled access of Chinese portfolio investors into the Indian market as it seeks to plug a possible loophole that investors from across the border can use to acquire shares in listed domestic companies. Details The department of economic […]