BANK CREDIT SHOT UP JUST BEFORE LOCKDOWN
Why in news? Bank loans grew by a whopping ₹2.31 lakh crore in the fortnight ended March 27, indicating robust loan demand just when a nationwide lockdown was imposed to contain the spread of COVID-19, according to the RBI. This was probably the highest fortnightly loan growth recorded in financial year 2019-20. Details The good […]
CHOKED SUPPLY LINES TO BE CLEARED, TOUGHER NORMS LIKELY FOR PUBLIC TRANSPORTATION
Why in news? Stoppered supply lines with trucks waiting on highways, the ongoing harvest season and procurement of food grains in various parts of the country are some of the issues that will inform the kind of lockdown the country will continue to have post April 14. Motor Vehicles Department chalks out protocol for post-lockdown […]
MSMES NEED HUGE PACKAGE
Why in news? Warning that the COVID-19 lockdown has thrown MSMEs — Micro, Small and Medium Enterprises — into deep distress, opposition has urged the Centre to set up a ₹1 lakh crore corpus fund as part of a relief package for the sector. Views of the Opposition There are over 6.3 crore MSMEs in […]
INDUSTRIAL OUTPUT GROWS 4.5% IN FEB
Why in news? India’s factory output accelerated 4.5% in February in comparison to the previous year. The growth in the Index of Industrial Production came on the back of higher output in mining, electricity and manufacturing sectors, according to the data released by the National Statistical Office on 9th April 2020. Details of Growth The cumulative […]
INFLATION MAY DROP TO 2.4% IN FY21: RBI
Why in news? The consumer price index (CPI)-based inflation, which had stayed elevated in the last few months, is expected to soften during the course of the financial year, the Reserve Bank of India (RBI) said in its monetary policy report (MPR). The Monetary Policy Report was published on 9th April 2020 following the unscheduled monetary […]
WORLD FACES NEW ‘GREAT DEPRESSION’, HALF A BILLION FACE POVERTY
Focus: GS-III Indian Economy, Economic Development, Disaster Management Why in news? The global coronavirus pandemic is causing an economic crisis unlike any in the past century and will require a massive response to ensure recovery, IMF said on 9th April 2020. Around half a billion people could be pushed into poverty as a result of the […]
IRDAI PERMITS INSURERS TO GRANT THREE MONTHS’ MORATORIUM ON TERM LOANS
Why in news? The Insurance Regulatory and Development Authority of India (IRDAI) has permitted insurers to grant a moratorium of three months on repayment of term loans sanctioned by them. Details: Considering the cash flow problems faced by the borrowers and in line with the recent directions of the RBI on moratorium on term loans, […]
ECONOMY TO CONTRACT 4.5% IN FOURTH QUARTER, SAYS ICRA
Why in news? The Indian economy is likely to witness a sharp contraction of 4.5% during Q4FY20 and is expected to recover gradually to post a GDP growth of just 2% in FY21, rating agency ICRA said. Details: ICRA said it reduced the growth forecast due to the nationwide lockdown imposed in the backdrop of […]
RBI RELAXES EXPORT RULES, ALLOWS STATES AND UTS TO BORROW MORE
Why in news? The Reserve Bank of India (RBI) has announced more measures to fight economic disruptions caused by COVID-19, including extension of the realisation period of export proceeds and allowing States to borrow more. Details of the Extension of Export Proceeds realisation period In view of the disruption caused by the pandemic, the time […]
Essential Commodities (EC) Act 1955
Why in news? MHA writes to States to ensure availability of Essential Goods, by invoking provisions of the Essential Commodities (EC) Act 1955, under Lockdown to fight COVID-19. Details: Offences under the EC Act are criminal offences and may result in imprisonment of seven years or fine or both. The State and Union Territory governments […]