PROVIDE INCOME SUPPORT, RESTORE JOBS
Why in news? States such as Madhya Pradesh, Uttar Pradesh and Gujrat have scrapped Labour laws as a move to bring about reforms to attract new investors who are looking to exit from China. Employers’ associations have urged the central government to do away with most labour rights to address temporary labour shortages. The abrogation […]
REDUCE THE COUNTRY’S PREFERENCE FOR CASH
Why in news? The first two weeks of March 2020 saw a jump of about ₹53,000 crore in cash available with the public, a spike over the fortnightly average of ₹8,435 crore over the previous 12 months. The surge continued into lockdown, in spite of apprehensions that RBI notes could act as carriers of coronavirus. […]
NOW OR NEVER: STATES ARE DRIVING BOLD REFORMS
Why in news? Uttar Pradesh, Madhya Pradesh and Gujarat have ushered in radical labour market reforms by freezing a vast number of acts and giving industries flexibility. MP has initiated a series of ease-of-doing-business process reforms: A single form for registration. Valid licences for the life of a project with no annual renewal. Shops can […]
RAGHURAM RAJAN EXPLAINS: HOW BEST TO STIMULATE ECONOMY?
Introduction To fund a bigger public spending programme, the government can either ask the RBI to print more money (monetise the deficit) or it can issue new bonds to be subscribed by the banks (raise money through borrowing). The Former RBI governor Raghuram Rajan explained how the two paths work and why ‘monetisation’ is a […]
SLOWER GROWTH AND A TIGHTER FISCAL
Introduction Various institutions have assessed India’s growth prospects for 2020-21 ranging from 0.8% (Fitch) to 4.0% (Asian Development Bank). This wide range indicates the extent of uncertainty and tentative nature of these forecasts. The International Monetary Fund (IMF) has projected India’s growth at 1.9%, China’s at 1.2%, and the global growth at (-) 3.0%. The […]
WHY LIQUOR SALES MATTER TO STATES?
Why in news? Following the easing of restrictions in the third phase of the nationwide lockdown, some of the most striking images on 4th May showed long queues outside liquor stores around the country. Manufacture and sale of liquor is one of the major sources of their revenue. How do states earn from liquor? Liquor […]
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 […]