NO GREEN SHOOTS OF A REVIVAL IN SIGHT AS YET
Why is news? On February 28, as per its release calendar, the National Statistical Office (NSO) put out the third quarter gross domestic product (GDP) estimates, that is, for October-December 2019. Is it Economic Revival? Domestic output grew at 4.7% at constant prices (that is, net of inflation) in 2019, compared to the same period […]
MONETARY POLICY CAN’T COMBAT THE COVID-19 IMPACT
Why in news? The huge 50 basis points cut in rates by the U.S. Federal Reserve on 3rd March 2020, to lift economic sentiment hit by COVID-19 has disrupted central banking worldwide. Even as analysts debate whether a monetary policy response is the right strategy, central banks across the world are feeling the pressure to […]
BANKING ON BAILOUTS
Why in news? Just one day after it placed the financially troubled Yes Bank under a moratorium, the Reserve Bank of India announced a draft ‘Scheme of Reconstruction’ that entails the State Bank of India (SBI) investing capital to acquire a 49% stake in the restructured private lender. Views on the Moratorium on Yes Bank […]
AN UNREST, A SLOWDOWN AND A HEALTH EPIDEMIC
Why in news? This article is written by Former Prime Minister Dr Manmohan Singh. He listed following issues India is facing today: Trinity of social disharmony, economic slowdown and a global health epidemic. Social unrest and economic ruin are self-inflicted while the health contagion of COVID-19 disease, caused by the novel coronavirus, is an external shock. Communal tensions have been […]
BOTTOM OR MIRAGE?
Why in news? Official estimates of gross domestic product for the fiscal third quarter have pegged growth in the festival demand-filled October-November month period at 4.7%, a distinct slowdown from the revised year-earlier and preceding quarters’ 5.6% and 5.1% paces respectively. Growth of different sectors: Manufacturing, which contributes just under a fifth to gross value added (GVA), was […]
ECONOMIC LIBERALISATION AND ITS FAULTS
Privatisation and Liberalisation The 1991-92 Budget speech marked the beginning of the end of the ‘Licence Raj’ in India. The 1991-92 Budget also announced the reduction of import duties and paved the way for foreign-manufactured goods to flow into India. Following this, most of the manufacturing sector was opened up to foreign direct investment. India’s […]
EXPLAINED: HOW A DOLLAR SWAP LINE WITH US FED CAN HELP
Why in news? India is working with the United States to secure a dollar swap line that would help in better management of its external account and provide extra cushion in the event of an abrupt outflow of funds, according to banking industry and government sources. India already has a $75 billion bilateral currency swap […]
WTO EXPECTS GLOBAL GOODS TRADE VOLUME TO SLUMP BY AS MUCH AS 32%
Why in news? The WTO released its outlook for global trade last week – Projecting merchandise trade to plummet by anywhere between 13% and 32% in 2020. Details Economists at the WTO appear certain that the disruption and resultant blow to trade will in all likelihood be far worse than the slump brought on by […]
EXPLAINED: DIRECT FARM-TO-KITCHEN DELIVERY PROVIDES RELIEF
Why in news? The disruption in supply chains as a result of the lockdown has spotlighted the relevance of a nearly two-decade-old initiative to reach fresh produce directly to consumers in Maharashtra, bypassing the mandis. The essential features of this alternative market channel — decentralisation and direct-to-home delivery — will remain valuable even after the […]
CENTRE MUST SPEND MORE, FOREGO TAX REVENUES
The Current Scenario As India nears the end of the lockdown period, the serious damage to the economy and livelihoods is beginning to make itself apparent. There is tremendous pressure from industry bodies to opt for a nuanced policy that will help economic activity to restart as they fear a collapse if activity is stopped […]