A DOUBLE WHAMMY FOR INDIA-GULF ECONOMIC TIES
Why in news? The Gulf region is at the epicentre of a perfect storm: apart from the COVID-19 pandemic, it also has an oil price meltdown. The situation’s impact on bilateral economic ties needs to be anticipated and managed. Oil prices in a tailspin- What happened? The region, especially Iran, has been mauled by COVID-19, […]
WILL COVID-19 AFFECT THE COURSE OF GLOBALISATION?
With several countries and regions locked down, will there be a redrawing of geographical boundaries? Much of what we saw in terms of global integration of trade and finance would suffer in the short run. When the world was hit by economic recession in 2008, trade dipped by almost 10% in 2009 when there was […]
FINANCING THE PANDEMIC RESCUE PACKAGE
The Current Predicament The priority for India is to ensure that it overcomes the COVID-19 pandemic and kick-starts GDP growth rather than fix the weaknesses in the macroeconomy: a high fiscal deficit of 7.49% and government indebtedness that was 69% of GDP in 2019. The Government’s financing strategy should be to raise long-term funds at […]
WHILE TAKING OVER MPLADS FUNDS, CENTRE MUST ALLOCATE JUDICIOUSLY
Why in news? The suspension of the Members of Parliament Local Area Development Scheme (MPLADS) for two years to boost the funding available for the COVID-19 fight is a step in the right direction. Why this move is a step in the right direction? It may appear at first blush that the decision may undermine […]
THE SPECTRE OF A POST-COVID-19 WORLD
Why in news? As COVID-19 spreads exponentially across the world, and the figures of those testing positive as also the numbers of deaths keep increasing in near-geometrical progression, profound uncertainty and extreme volatility are wreaking havoc of a kind seldom encountered previously. It might, hence, be wise to start thinking of what next, if at […]
STILL NO BULLSEYE, IN VOLUME AND VALUE: ON DEFENCE EXPORTS AND DEFENCE IMPORTS
According to a report released by Stockholm International Peace Research Institute (SIPRI) for the period between 2009-13 and 2014-18, Indian defence imports fell even as exports increased. This is good for a nation that has had the record of being one of the biggest importers of Defence equipment. 2 Factors responsible for this shift ‘Make […]
U.S. FREEZES WHO FUNDING OVER CORONAVIRUS CRISIS, INDIA STEERS CLEAR
Why in news? President Donald Trump said on 14th April 2020 he has instructed his administration to halt funding to the World Health Organization (WHO) over its handling of the coronavirus pandemic while his administration reviews its response to the global crisis. Trump said WHO had promoted China’s “disinformation” about the virus that likely led […]
HDFC CHAIRMAN SUGGESTION: EASING 90-DAY NPA DEADLINE NORM
Why in news? HDFC Ltd. chairman has suggested a relaxation in non-performing assets (NPA) classification to a period of six months. He said, instead of 90 days, a loan should be classified as NPA if repayment is due for 180 days. He also suggested that the Reserve Bank of India (RBI) approve one-time restructuring of […]
WORLD ECONOMY TO CONTRACT BY 3% IMF
Why in news? The COVID-19 pandemic is having a “severe” effect on the world economy and is expected to cause a -3% change (i.e., a contraction) in global output in 2020, “much worse” than the 2008-09 financial crises, as per the International Monetary Fund’s (IMF) World Economic Outlook (WEO). India’s growth is expected to dip […]
RETAIL INFLATION EASES TO 5.91%
Why in news? Retail inflation dropped to 5.91% in March from the 6.58% in February, mostly on a drop in food prices, according to the Consumer Price Index data released by the National Statistical Office on 13th April 2020. Details Food inflation fell to 8.76% in March, in comparison with the 10.81% in February. Vegetable […]