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 […]
GOVT. IDENTIFIES SECTORS FOR TAX SOPS
Why in news? The government has identified close to a dozen sectors, ranging from capital goods, defence, pharma and electronics to labour-intensive ones such as textiles and food where it is considering proposals for tax concessions. It is also pushing for land and procedural reforms to attract investment as part of a goal to be […]
CENTRE PLANS TO CHECK CHINESE FPI FLOWS
Why in news? After foreign direct investment (FDI), the government is now looking to clamp down on unbridled access of Chinese portfolio investors into the Indian market as it seeks to plug a possible loophole that investors from across the border can use to acquire shares in listed domestic companies. Details The department of economic […]
SUSPEND LABOUR LAWS FOR 2-3 YEARS: EMPLOYERS’ ASSOCIATIONS
Why in news? The Representatives of 12 employers’ associations and industry bodies on 9th May asked the government to suspend labour laws for the next two to three years to help industry come out of the present crisis. The Labour and Employment Ministry will handle by being sympathetic to the requirements of the industry and would […]