26 Feb - 6 March, 2020

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Weekly Updates on Indian Economy

29th February 2020 to 6th March 2020

 

National Accounts and state of the economy

1. Virus biggest threat to global economy since financial crisis, says OECD

https://timesofindia.indiatimes.com/business/international-business/virus-biggest-threat-to-global-economy-since-financial-crisis-says-oecd/articleshow/74449783.cms

https://edition.cnn.com/2020/03/02/business/oecd-global-economy/index.html

2. Feb unemployment rate hits 4-month high of 7.78% as slowdown persists: CMIE

https://www.business-standard.com/article/economy-policy/feb-unemployment-rate-hits-4-month-high-of-7-78-as-slowdown-persists-cmie-120030200226_1.html

https://www.newindianexpress.com/business/2020/mar/03/coronavirus-effect-unemployment-rate-in-february-hits-four-month-high-due-to-supply-chain-disruptions-2111337.html

https://economictimes.indiatimes.com/news/economy/indicators/indias-february-unemployment-rate-rises-to-7-78-highest-in-4-months-cmie/articleshow/74434297.cms?from=mdr

3. OECD lowers India's FY21 GDP growth to 5.1 pc on coronavirus concerns

https://economictimes.indiatimes.com/news/economy/indicators/oecd-lowers-indias-fy21-gdp-growth-to-5-1-pc-on-coronavirus-concerns/articleshow/74446482.cms

4. Fitch cuts India’s economic growth forecast to 4.9% for FY20

https://www.thehindubusinessline.com/economy/fitch-cuts-indias-economic-growth-forecast-to-49-for-fy20/article30962270.ece

5. Coronavirus impact: Feb manufacturing PMI slips marginally to 54.5

https://www.business-standard.com/article/economy-policy/coronavirus-impact-feb-manufacturing-pmi-slips-marginally-to-54-5-120030201423_1.html

6. US Fed cuts rates to 1.25 per cent to cushion coronavirus blow

https://www.newindianexpress.com/business/2020/mar/04/us-fed-cuts-rates-to-125-per-cent-to-cushion-coronavirus-blow-2111884.html

https://www.bbc.com/news/business-51726954

7. Covid-19: India begins to feel the chill

 https://www.magzter.com/article/Newspaper/The-Hindu-Business-Line/Covid-19-India-Begins-To-Feel-The-Chill

8. To spur investment, fix structural issues

https://www.thehindubusinessline.com/opinion/columns/to-spur-investment-fix-structural-issues/article30974625.ece

9. Lackluster performance of major segments drag down GDP growth in Q3

https://www.business-standard.com/article/economy-policy/lacklustre-performance-of-major-segments-drag-down-gdp-growth-in-q3-120022801624_1.html\

10. India’s ultra-wealthy individuals set to double by 2024: Report

https://www.thehindubusinessline.com/economy/indias-ultra-wealthy-individuals-set-to-double-by-2024-report/article30992013.ece

 

Public Finance

1. GOVT's FY20 disinvestment target may fall short by Rs 10,000 crore

https://www.business-standard.com/article/economy-policy/govt-s-fy20-disinvestment-target-may-fall-short-by-rs-10-000-crore-120030201583_1.html

2. States slashed capital outlay by 14% to plug fiscal deficit: Report

https://www.business-standard.com/article/economy-policy/states-slashed-capital-outlay-by-14-to-plug-fiscal-deficit-report-120030201049_1.html

3. Cut in Budgetary allocation will jeopardise tourism: House panel

https://www.thehindu.com/business/Economy/cut-in-budgetary-allocation-will-jeopardise-tourism-house-panel/article30975507.ece

4. Taxpayers nudged to opt for Vivaad Se Vishwas scheme

https://economictimes.indiatimes.com/news/economy/policy/taxpayers-nudged-to-opt-for-vivaad-se-vishwas-scheme/articleshow/74467641.cms?from=mdr

5. Centre begins work on LIC disinvestment; may target IPO by next fiscal

https://www.thehindubusinessline.com/money-and-banking/centre-begins-work-on-lic-disinvestment-may-target-ipo-by-next-fiscal/article30974788.ece

6. India saw Rs 6.14 trillion, or 3% of GDP, escape tax net in 2017: Report

https://www.business-standard.com/article/pti-stories/at-usd-83-5-bn-india-has-3rd-highest-trade-related-illicit-financial-flow-globally-report-120030300919_1.html

7. Government’s total receipts at ₹12.82 lakh crore in April-Jan.

https://www.thehindu.com/business/governments-total-receipts-at-1282-lakh-crore-in-april-jan/article30952967.ece

8. India’s April-January Fiscal Deficit Reaches 128.5% Of Rs 7.67 Lakh Crore Revised FY20 Target

https://www.bloombergquint.com/global-economics/fiscal-deficit-touches-128-5-pc-of-budget-estimate-at-jan-end-govt-data

9. Lok Sabha passes ‘Vishwas’ bill, government eyes Rs 1.5 lakh
http://timesofindia.indiatimes.com/articleshow/74484134.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

10. Vivad se Vishwas scheme: I-T officials up in arms over CBDT diktat

https://www.business-standard.com/article/economy-policy/vivad-se-vishwas-scheme-i-t-officials-up-in-arms-over-cbdt-diktat-120030500041_1.html

11. GST collections at Rs 1.05 lakh crore in February
http://timesofindia.indiatimes.com/articleshow/74428014.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

12. Multiple slabs in tax regime in line with global practice
http://timesofindia.indiatimes.com/articleshow/74432426.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

13. Dividend tax on InvITs may not go
http://timesofindia.indiatimes.com/articleshow/74432483.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

14. Labour ministry keen to retain 8.65% interest rate on EPF deposits for FY20

https://www.business-standard.com/article/pti-stories/labour-ministry-keen-to-retain-8-65-pc-interest-rate-on-epf-deposits-for-2019-20-120030100205_1.html

15. Food processing ministry grants aid for 10 projects https://www.thehindubusinessline.com/economy/policy/food-processing-ministry-grants-aid-for-10-projects/article30991396.ece

 

Banking and Central Bank related

1. No Rs 100s in ATMs? Blame it on sizes

https://timesofindia.indiatimes.com/business/india-business/no-rs-100s-in-atms-blame-it-on-sizes/articleshow/74449909.cms

2. Sharp decline in PSB fraud amount, Centre tells Lok Sabha

https://www.thehindu.com/business/sharp-decline-in-psb-fraud-amount-centre-tells-lok-sabha/article30965596.ece

3. RBI receives ₹1.71 lakh crore in LTRO

https://www.thehindu.com/business/rbi-receives-171-lakh-crore-in-ltro/article30965993.ece

https://www.indiatoday.in/business/story/rbi-receives-rs-1-71-lakh-crore-in-ltro-1651754-2020-03-02

https://economictimes.indiatimes.com/markets/bonds/rbi-gets-rs-1-71-lakh-crore-bids-for-rs-25000-crore-ltro/articleshow/74444105.cms

4. As FY20 comes to a close, Mudra loans see rapid surge

https://www.thehindubusinessline.com/money-and-banking/as-fy20-comes-to-a-close-mudra-loans-see-rapid-surge/article30964942.ece

5. Should RBI oversee deposit insurance?

https://www.thehindubusinessline.com/opinion/should-rbi-oversee-deposit-insurance/article30965264.ece

6. Rural ATMs under recalibration for ₹200, ₹500 notes

https://www.thehindu.com/business/Economy/rural-atms-under-recalibration-for-200-500-notes/article30975131.ece

7. RBI assures steps to keep financial markets in order, tells banks to prepare action plan against risks

https://economictimes.indiatimes.com/news/economy/policy/rbi-assures-steps-to-keep-financial-markets-in-order-tells-banks-to-prepare-action-plan-against-risks/articleshow/74465456.cms

8. Digitising transit payments key to a cashless economy

https://economictimes.indiatimes.com/industry/banking/finance/banking/fastag-digitising-transit-payments-key-to-a-cashless-economy/articleshow/74467929.cms?from=mdr

9. RBI’s latest move can help banks save ₹7,400 crore as CRR benefits: SBI report

https://www.thehindubusinessline.com/money-and-banking/rbis-latest-move-can-help-banks-save-7400-crore-as-crr-benefits-sbi-report/article30970013.ece

10. SC quashes RBI order, paves way for cryptocurrency trade
http://timesofindia.indiatimes.com/articleshow/74483927.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

11. Nod for government bank mergers from April
http://timesofindia.indiatimes.com/articleshow/74484925.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

12. Banking Bill sets alarm bells ringing for State

https://www.thehindu.com/news/national/kerala/banking-bill-sets-alarm-bells-ringing-for-state-coop-sector/article30983072.ece/amp/

 

13. IBC will discriminates against home buyers

https://www.thehindu.com/news/national/ibc-bill-discriminates-against-homebuyers/article30983639.ece

14. Bond yields decline on expectation of rate cut

https://www.thehindu.com/business/Economy/bond-yields-decline-on-expectation-of-rate-cut/article30984126.ece

15. Importers rushing for cover, markets looking for rate cut
https://economictimes.indiatimes.com/markets/forex/rupee-bounces-back-as-banks-buy-bond-yield-hits-3-year-lows/articleshow/74485758.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

16. Green signal for mega bank consolidation

https://www.thehindubusinessline.com/economy/cabinet-green-signal-for-amalgamation-of-10-public-seco-banks/article30982336.ece

17. RBI’s long term funds, cut in CRR will reduce banks dependence on CD’s, TD’s

https://www.magzter.com/article/Newspaper/The-Hindu-Business-Line/RBIs-long-term-funds-cut-in-CRR-will-reduce-banks-dependence-on-CDs-TDs

18. PMJDY helps raise women’s ownership of bank accounts to 77% in 2017: MSC

https://www.thehindubusinessline.com/money-and-banking/pmjdy-helps-raise-womens-ownership-of-bank-accounts-to-77-in-2017-msc/article30982307.ece

19. Avoid unconventional monetary policy

https://www.thehindubusinessline.com/opinion/avoid-unconventional-monetary-policy/article30983859.ece

20. Bank credit growth dips to 8.5% in January
 

https://timesofindia.indiatimes.com/business/india-business/bank-credit-growth-dips-to-8-5-in-january/articleshow/74432460.cms

21. Realisation of 823 firms under IBC only 7% of admitted claims till January

https://www.business-standard.com/article/companies/realisation-of-823-firms-under-ibc-only-7-of-admitted-claims-till-january-120022901090_1.html

 

22. Banks announce share swap ratios

https://www.thehindu.com/business/eight-psbs-announce-share-swap-ratios/article30993849.ece

 

23. RBI to seek review of Supreme Court order on cryptocurrency

https://economictimes.indiatimes.com/news/economy/policy/rbi-to-seek-review-of-supreme-court-order-on-cryptocurrency/articleshow/74503345.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

24. UPI transaction limit for stores doubled to Rs 2 lakh


https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/upi-transaction-limit-for-stores-doubled-to-rs-2-lakh/articleshow/74503442.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

Industry, Services and Technology

1. Government looks at new tools to decriminalise Companies Act
http://timesofindia.indiatimes.com/articleshow/74484882.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

2.Finance Ministry offers amnesty to defaulting Limited Liability Partnerships

https://www.newindianexpress.com/business/2020/mar/05/finance-ministry-offers-amnesty-to-defaulting-limited-liability-partnerships-2112376.html

 

3. Cabinet tweaks aviation FDI policy to help AI https://www.thehindubusinessline.com/economy/policy/cabinet-tweaks-aviation-fdi-policy-to-ease-air-india-divestment/article30983263.ece

4. Oil rises as OPEC, allies work on production cuts.

https://www.thehindubusinessline.com/markets/commodities/oil-rises-more-than-1-on-smaller-than-expected-rise-in-crude-stocks/article30987979.ece

5. India Inc. makes the most of corporate tax cut in Dec Qtr.

https://www.thehindubusinessline.com/portfolio/news-analysis/india-inc-makes-the-most-of-corporate-tax-cut-in-dec-quarter/article30957227.ece

6.Highest growth in tourist arrivals in 24 Years

https://www.thehindu.com/news/national/kerala/highest-growth-in-tourist-arrivals-in-24-years/article30994365.ece

7.India services growth at over 7-year high on strong export demand
https://economictimes.indiatimes.com/news/economy/indicators/india-services-growth-at-over-7-year-high-on-strong-export-demand/articleshow/74470471.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Agriculture

1. Field spice crop prospects look bright this season

https://www.thehindubusinessline.com/markets/commodities/field-spice-crop-prospects-look-bright-this-season/article30964704.ece

2. And now, pepper imports from Brazil worry Indian growers

https://www.thehindubusinessline.com/markets/commodities/and-now-pepper-imports-from-brazil-worry-indian-growers/article30974703.ece

3. Cardamom prices drop ₹200/kg on weak demand

https://www.thehindubusinessline.com/markets/commodities/cardamom-afternoon-auction-called-off-due-to-poor-arrivals/article30969726.ece

4. Tea Board asks small growers to prune 25% area this month

https://www.thehindubusinessline.com/economy/agri-business/tea-board-asks-small-growers-to-prune-25-area-this-month/article30972920.ece

5. Good harvest keeps farmers happy: Farm sector records 3.5% growth in Q3

https://www.business-standard.com/article/economy-policy/good-harvest-keeps-farmers-happy-farm-sector-records-3-5-growth-in-q3-120022801636_1.html

6. Doubling farmers’ income deadline now shifted to 2024: Government

https://www.newindianexpress.com/nation/2020/mar/05/doubling-farmers-income-deadline-now-shifted-to-2024-government-2112349.html

7. High local prices may hit cardamom exports
https://economictimes.indiatimes.com/markets/commodities/news/high-local-prices-may-hit-cardamom-exports/articleshow/74487522.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

External Sector

1. Engineering exports likely to record a dip this fiscal year: EEPC Chairman Ravi Sehgal

https://www.thehindubusinessline.com/economy/engineering-exports-likely-to-record-a-dip-this-fiscal-year-eepc-chairman-ravi-sehgal/article30961124.ece

2. India to resume onion exports from March 15

https://economictimes.indiatimes.com/news/economy/foreign-trade/india-to-resume-onion-exports-from-march-15/articleshow/74444768.cms?from=mdr

https://www.thehindubusinessline.com/economy/agri-business/onion-export-ban-to-be-lifted-on-mar-15/article30964480.ece

3. Govt restricts export of 26 drug formulations

https://www.thehindubusinessline.com/economy/policy/govt-puts-export-curbs-on-26-pharma-ingredients-medicines/article30971571.ece

 

Industry, Manufacturing, Services and Technology

1. Government plans Rs 42,000 crore Make in India boost for mobile phones

https://timesofindia.indiatimes.com/business/india-business/government-plans-rs-42000-crore-make-in-india-boost-for-mobile-phones/articleshow/74449439.cms

2. Around Rs 10.52-trn corporate debt may default over 3 years: India Ratings

https://www.business-standard.com/article/companies/around-rs-10-52-trn-corporate-debt-may-default-over-3-years-india-ratings-120030200388_1.html

https://www.deccanherald.com/business/business-news/around-rs-1052-lakh-cr-of-corporate-debt-at-risk-of-default-due-to-slowdown-report-809805.html

3. Manufacturing activity eases marginally in February: PMI

https://www.newindianexpress.com/business/2020/mar/02/indias-manufacturing-activity-slows-down-marginally-in-february-amid-coronavirus-scare-2111018.html

https://www.thehindubusinessline.com/economy/manufacturing-activity-remained-strong-in-february-pmi-survey/article30961575.ece

4. Indian firms dependent on Chinese inputs feels the Coronavirus heat

https://www.magzter.com/article/Newspaper/The-Hindu-Business-Line/Indian-firms-dependent-on-Chinese-inputs-feel-the-coronavirus-heat

5. Setting up pharma R&D bases in India will soon be incentivised

https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/setting-up-pharma-rd-bases-in-india-to-soon-be-incentivised/articleshow/74450032.cms?from=mdr

6. DoT to issue notices as AGR receipts add up to only Rs 24,000 crore

https://www.business-standard.com/article/companies/dot-to-issue-notices-as-agr-receipts-add-up-to-only-rs-24-000-crore-120030400061_1.html

7.  Salaries of around 30 mn industrial workers set to rise with new CPI series

https://www.business-standard.com/article/economy-policy/salaries-of-around-30-mn-industrial-workers-set-to-rise-with-new-cpi-series-120030301635_1.html

Columns by Joseph Stiglitz and Paul Krugman

1. Can the Fed and Friends Save the Economy?

https://www.nytimes.com/2020/03/03/opinion/coronavirus-economy-interest-rates.html

2. Paranoid Politics Goes Viral

https://www.nytimes.com/2020/03/02/opinion/coronavirus-trump.html

3. Bernie Sanders Is Going for Broke

https://www.nytimes.com/2020/03/05/opinion/bernie-sanders-obama.html