CII PROPOSES DIFFERENT RULES FOR TOP PRIORITY DISTRICTS
Why in news? The country’s high performing economic districts should be allowed to play by different rules in the third phase of the lockdown beginning 4th April, according to the Confederation of Indian Industry (CII). Concerns with Economic Recovery In a CII poll almost half of the CEOSs say an economic recovery will take over a […]
CORONAVIRUS IS PULLING MILLIONS BACK INTO POVERTY
Introduction to expected increase in Poverty The gains the world was making in fighting poverty are now at grave risk. The World Bank says that for the first time since 1998, global poverty rates will rise. By the end of the year 2020, 8% of the world’s population — half a billion people — could […]
MARCH 2020 CORE SECTOR OUTPUT SLUMPS 6.5%
Why in news? The Output at India’s core sector contracted by 6.5% in March, Commerce Ministry data show, reflecting the early impact of the COVID-19 pandemic and the subsequent nationwide lockdown. The index of eight core sector industries, which form 40% of the weight of items included in the broader Index of Industrial Production (IIP), […]
$1.5 BILLION ADB LOAN TO FUND COVID-19 EMERGENCY RESPONSE
Why in news? The Government of India has taken a $1.5 billion loan from the Asian Development Bank (ADB) to fund its immediate response to the coronavirus (COVID-19) pandemic, both in terms of the health and socio-economic impacts. The money, translating to more than ₹11,000 crore, will be spent to implement the containment plan and […]
COST OF DOING BUSINESS TO SEE SIGNIFICANT RISE
Why in news? As COVID-19 takes its toll on the economy and on human lives, the cost of doing business is set to go up as companies gear up to adhere to new safety and hygiene standards in their daily operations despite likely scaled down business activity and lower earnings. Why would the Cost of […]
INDIA AMONG TOP 3 MILITARY SPENDERS: REPORT
Why in news? The global military expenditure rose to $1917 billion in 2019 with India and China emerging among the top three spenders, according to a report ‘Trends in World Military Expenditure, 2019’ by Stockholm International Peace Research Institute (SIPRI). Details India’s tensions and rivalry with both Pakistan and China are among the major drivers […]
RBI OPENS RS. 50,000-CR LIQUIDITY TAP FOR MUTUAL FUNDS
Why in news? In a bid to address concerns arising out of Franklin Templeton’s decision to wind up six debt funds, the Reserve Bank of India on 27th April 2020, decided to open a special liquidity facility for mutual funds (SLF-MFs) of ₹50,000 crore. The move is aimed at easing the liquidity pressure that mutual funds […]
SIGNALLING SUPPORT: ON RBI RELIEF FOR MUTUAL FUNDS
Why in news? The Reserve Bank of India’s decision to open a special facility to ensure the availability of adequate liquidity for the mutual fund industry is a timely move in signalling to investors that the central bank is alert to the need to preserve financial stability in these challenging times. In assigning ₹50,000 crore […]
WHAT RBI’S RS 50,000 CRORE BOOST MEANS FOR MUTUAL FUNDS?
Why in news? The Reserve Bank of India (RBI) on 27th April, 2020 announced a special liquidity window of Rs 50, 000 crore to bail out mutual funds hit by the turmoil in the debt fund segment that led to the closure of six credit risk funds by Franklin Templeton Mutual Fund. How will liquidity window […]
TEN STEPS WHILE RESTARTING THE ECONOMIC ENGINE
The recommended Ten Steps: Any calibrated approach to ‘restarting the economy’ should include the following 10 steps: 1. Relax the fiscal deficit target: Stretching the deficit target to release money which can be used for well-directed income transfers and food support, facilitate business disruption loans by offering guarantee to commercial banks, soften the blow to […]