A NUTRITION RICH INDIA CAN DO MORE, AND DO IT BETTER
Context: The wasting of millions of young children, owing to malnutrition, is a key imbalance Details: The next decade is going to be decisive to irrevocably rid ourselves of deficiencies One critical imbalance to eliminate is that of inequalities of opportunity Due to malnutrition- we are wasting of millions of our young children and the inability […]
CONTINUITY AND FISCAL FOLLOW THROUGH: 15TH FINANCE COMMISSION’S INTERNIM REPORT
Why in news? The appointment of the Fifteenth Finance Commission by the President of India under Article 280 of the Constitution was notified on November 27, 2017. It was required to submit the report by October 30, 2019 for five years for the period 2020-21 to 2024-25 Notifications were issued first, on July 27 extending […]
FALLING SHORT OF ASPIRATIONS
Why in news? Expectations from the Union Budget 2020 was that it would reverse the falling growth rate, reduce unemployment and rekindle the animal spirits needed to revive private investment. Bonds and startups The fundamental problem of infrastructure finance is the asset-liability mismatch which can be addressed only by developing a vibrant ‘corporate bond market. […]
COGNIZANT OF CONSTRAINTS
Why in news? he interim report of the 15th Finance Commission, tabled in Parliament on Saturday, has largely preserved the devolution mathematics of its predecessor, belying concerns of a sizeable cut in States’ share What has the commission said? The commission has recommended a one percentage point reduction in the vertical split of the divisible pool of […]
HOW THE FINANCIAL PACKAGE IS THE SILVER LINING?
India’s Economic Position India as a resilient economy ranks 59th. For a country that is fifth largest in terms of GDP, this rank of being only the 59th most resilient Economy shows that we need to revisit our economic principles. Reasons for India’s Low Resilient Economy Ranking: Measure Taken I – Productivity MSMEs feared regulatory measures […]
LESSONS FROM THE GREAT DEPRESSION FOR INDIA
Introduction The Great Depression, which gripped the United States (US) in the 1930s, is being discussed in the context of the economic aftermath of Covid-19. The economic downturn began in the US around the end of 1929, with a sharp dip in production and GDP, and a sharp increase in unemployment. Production also dropped significantly […]
MANUFACTURING ACTIVITY REACHES A NEAR 8-YEAR HIGH IN JANUARY
Why in news? Sharp rise in demand drives growth of new business, exports, jobs: IHS Markit Details: The country’s manufacturing sector activity climbed to a near eight-year high in January, driven by a sharp rise in new business orders amid a rebound in demand conditions that led to a rise in production and hiring activity […]
U.P. WITHDRAWS NOTIFICATION ON INCREASED WORK HOURS
Why in news? The Uttar Pradesh government has withdrawn its recent order increasing daily work hour shifts in manufacturing units from the existing 8 hours to 12 hours. Background The U.P. government had on May 8 passed a notification diluting provisions of the Factories Act of 1948 and increased work timings by providing certain exemptions […]
FIFTH TRANCHE OF THE ECONOMIC STIMULUS PACKAGE
Why in news? The fifth and final tranche of the Atmanirbhar Bharat Abhiyan stimulus package, announced by Finance Minister on 17th May 2020. The total package amounts to almost ₹21 lakh crore by the Centre’s accounting, but is heavy on credit-related measures, including ₹8 lakh crore worth of liquidity enhancing measures by the RBI. Highlights of […]
CENTRE BORROWS ANOTHER $1 BILLION FROM WORLD BANK
Why in news? The Centre is taking another $1 billion loan from the World Bank to support its COVID-19 relief measures and financial assistance for the poorest and most vulnerable communities. The loan was approved by the World Bank’s Board of Executive Directors on 14th May 2020, according to an official statement. Details The money will […]