ARE INDIA’S LABOUR LAWS TOO RESTRICTIVE?
Why in news? Some State governments including Uttar Pradesh (U.P.) and Madhya Pradesh (M.P.) have proposed ordinances to exempt manufacturing establishments from the purview of most labour laws. Are the Labour Law Exemption ordinances justified? Three Issues: The kind of changes that have been made, they potentially will hurt, will dis-enable the realisation of the […]
NIRBHARTA STARTS AT HOME
Introduction The first instalment of the Rs. 20 Trillion (Lakh Crores) package of measures announced by the finance minister on 13th May 2020 is an important major step towards keeping the economy afloat (instead of revive). Not all of the Rs. 20 Lakh Crores constitute extra fiscal expenditure. They include extra expenditures, loans, loan guarantees and […]
WHICH SECTORS DEPEND ON IMPORTS, AND WHICH DO NOT?
What sectors heavily depend on imports Electrical equipment such as smartphones and computers are a key part of India’s import bill. Around 88% of the components used by the mobile handsets industry are imported from countries like China. Over 60 per cent of the country’s medical devices are imported as well. Other products heavily imported into the country […]
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 […]
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 […]