4 - 10 April, 2020

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Weekly Updates on Indian Economy

(4th April 2020 to 10th April 2020)

National Accounts and state of the economy

  1. Investors stay in risk-off mode
    https://www.financialexpress.com/market/markets-tumble-investors-stay-in-risk-off-mode/1918526/
  2. Centre releases 17287 cr to states
    https://economictimes.indiatimes.com/news/politics-and-nation/centre-releases-rs-17287-cr-to-states-to-fight-covid-19/articleshow/74973847.cms?from=mdr
  3. ADB sees India FY21 GDP slipping to 4%
    https://m.economictimes.com/news/economy/indicators/adb-expects-indias-economic-growth-to-slow-down-to-4-pc-in-fy21-on-coronavirus-pandemic/articleshow/74960057.cms
  4. India’s biggest challenge in the time of corona virus
    https://www.financialexpress.com/opinion/economic-policy-indias-biggest-challenge-in-time-of-coronavirus/1918490/
  5. The long march to uncertainty
    https://www.thehindu.com/news/national/india-coronavirus-lockdown-migrant-workers-and-their-long-march-to-uncertainty/article31251952.ece
  6. A niggardliness that is economically unwarranted
    https://www.thehindu.com/opinion/lead/a-niggardliness-that-is-economically-unwarranted/article31264475.ece
  7. Cashless Indians, the new normal and survival
    https://www.thehindu.com/opinion/op-ed/cash-less-indians-the-new-normal-and-survival/article31274464.ece
  8. Centre mulls longer lock-down
    https://m.economictimes.com/news/politics-and-nation/centre-mulls-extension-after-states-experts-raise-red-flags/articleshow/75035987.cms
  9. A different economic approach
    https://www.thehindu.com/opinion/op-ed/a-different-economic-approach/article31282618.ece
  10. India needs an economic package for revival
    https://www.financialexpress.com/opinion/india-needs-an-economic-package-for-revival/1923094/
  11. Coronavirus Pandemic will Unleash Worst Recession Since Great Depression: IMF Chief

https://thewire.in/economy/imf-chief-coronavirus-pandemic-recession

  1. India’s Unemployment Rate May Have Shot Up to 23% After COVID-19 Lockdown: CMIE

https://thewire.in/economy/india-unemployment-lockdown-cmie

  1. Scale up the relief package to 5-6% of GDP

https://www.livemint.com/opinion/quick-edit/scale-up-the-relief-package-to-5-6-of-gdp-11586417238332.html

  1. Opinion | Poverty alert

https://www.livemint.com/opinion/quick-edit/opinion-poverty-alert-11586364370300.html

  1. Opinion | Job destruction is a serious flashpoint

https://www.livemint.com/opinion/online-views/job-destruction-is-a-serious-flashpoint-11586280275791.html

  1. Opinion | Let us not underestimate the pandemic’s economic fallout

https://www.livemint.com/opinion/columns/opinion-let-us-not-underestimate-the-pandemic-s-economic-fallout-11586105517117.html

  1. Coronavirus: RBI admits it overestimated GDP growth for 2019-’20 even before pandemic began

https://scroll.in/latest/958789/coronavirus-rbi-admits-it-overestimated-gdp-growth-for-2019-20-even-before-pandemic-began

  1. Podcast: How can India rebuild its economy after the coronavirus lockdown?

https://scroll.in/article/958624/podcast-how-can-india-rebuild-its-economy-after-the-coronavirus-lockdown

  1. ‘Covid-19 hangs over the future, like a spectre’: RBI warns of ‘drastically altered’ growth outlook

https://scroll.in/latest/958706/covid-19-hangs-over-the-future-like-a-spectre-rbi-warns-of-drastically-altered-growth-outlook
 

Public Finance

  1.  Borrowings of centre, states up 24.3 % & 32.4 % respectively as of February as revenues disappoint
    https://www.business-standard.com/article/pti-stories/centre-states-borrowings-up-24-3-32-4-as-of-feb-as-revenues-disappoint-120040301212_1.html
  2. Mega cash transfer in battle covid
    https://timesofindia.indiatimes.com/india/govt-launches-mega-cash-transfer-to-fight-covid-19/articleshow/74975904.cms
  3. India has 3-5 % of GDP that can put into this process of stabilisation of the economy  
    https://timesofindia.indiatimes.com/blogs/academic-interest/india-has-3-5-of-gdp-that-it-can-put-into-this-process-of-stabilisation-of-the-economy/
  4. Lowest ever GST on imports in March
    https://timesofindia.indiatimes.com/business/india-business/lowest-ever-gst-on-imports-in-march/articleshow/75019431.cms
  5.  A second budget may be required to deal with coviod-19 aftermath
    https://www.thehindu.com/news/national/govt-may-have-to-present-second-budget-to-deal-with-covid-19-aftermath-says-jairam-ramesh/article31268557.ece
  6. AAR: Remuneration paid to directors to attract GST
    https://economictimes.indiatimes.com/news/economy/policy/remuneration-paid-to-directors-to-attract-gst-aar/articleshow/75030502.cms
  7. Monetary- Fiscal distancing as important
    https://www.financialexpress.com/economy/monetary-fiscal-distancing-as-important/1919635/
  8. Government nulls deferring some taxes to help small firms salvage growth
    https://www.bloomberg.com/news/articles/2020-04-08/india-mulls-deferring-some-taxes-to-help-firms-salvage-growth
  9. Fiscal stimulus through the GST System
    https://www.financialexpress.com/opinion/fiscal-stimulus-through-the-gst-system/1923080/
  10. The unemployment crisis
    https://economictimes.indiatimes.com/news/economy/indicators/about-400-million-workers-in-india-may-sink-into-poverty-un-report/articleshow/75041922.cms
  11. Needed, greater decentralisation of power
    https://www.thehindu.com/opinion/lead/needed-greater-decentralisation-of-power/article31293086.ece
  12. COVID-19: All Govt Departments Told to Cut Expenses by 60%

https://thewire.in/government/covid-19-all-govt-departments-told-to-cut-expenses-by-60

  1. Why States' Battle for GST Compensation Is More Important Than Ever

https://thewire.in/economy/gst-compensation-states-fiscal-federalism

  1. Economists pitch for Rs 3 lakh cr additional package to tide over COVID-19 crisis; bat for large fiscal stimulus to affected industries

https://www.firstpost.com/business/economists-pitch-for-rs-3-lakh-cr-additional-package-to-tide-over-covid-19-crisis-bat-for-large-fiscal-stimulus-to-affected-industries-8240641.html

  1. Coronavirus Outbreak: Centre releases Rs 14,103 cr GST compensation to states; more to be released soon

https://www.firstpost.com/business/coronavirus-outbreak-centre-releases-rs-14103-cr-gst-compensation-to-states-more-to-be-released-soon-8240601.html

  1. ClearTax launches ‘Power of 21’, e-learning course on GST, direct taxes

https://www.firstpost.com/business/cleartax-launches-power-of-21-e-learning-course-on-gst-direct-taxes-8240341.html

  1. Opinion | A delay in fiscal relief will hurt the economy

https://www.livemint.com/opinion/online-views/opinion-a-delay-in-fiscal-relief-will-hurt-the-economy-11586100847568.html
 

Industry, Manufacturing, Services and Technology

  1.  Supply chain shock to hit auto parts sector
    https://economictimes.indiatimes.com/industry/auto/auto-components/coronavirus-supply-chain-shock-will-have-negative-impact-on-indian-auto-component-sector/articleshow/74966259.cms?from=mdr
  2. Government eases rules to aid supply chain
    https://timesofindia.indiatimes.com/business/india-business/govt-eases-rules-to-aid-supply-chain/articleshow/74976366.cms
  3. The long term investment trap
    https://www.thehindu.com/business/Economy/the-long-term-investment-trap/article31259677.ece
  4. Services PMI falls to five month low
    https://economictimes.indiatimes.com/news/economy/indicators/covid-19-impact-services-pmi-falls-to-5-month-low/articleshow/75016364.cms?from=mdr
  5. Joblessness up 3-fold since March 22: CMIE
    https://www.eepcindia.org/download/Joblessness-up-3-fold-CMIE--TOI--20200408104416.pdf
  6. Coronavirus: Petrol, Diesel Demand Slumps 66% in April; ATF Down 90%

https://thewire.in/economy/coronavirus-petrol-diesel-demand

  1. To Help Small Firms, India Will Unveil Second Coronavirus Stimulus Worth $13 Billion

https://thewire.in/economy/to-help-small-firms-india-will-unveil-second-coronavirus-stimulus-worth-13-billion

  1. When Lockdown is Lifted, Manufacturers Face Challenge to Get Labour Back

https://thewire.in/labour/when-lockdown-is-lifted-manufacturers-face-challenge-to-get-labour-back

  1. COVID-19 Crisis Offers an Urgent and Much Needed Reset Point for India’s Food Processing Industry

https://thewire.in/business/covid-19-crisis-reset-point-food-processing-industry-india

  1. India’s textile export, MSME hubs come to a grinding halt

https://www.livemint.com/industry/manufacturing/india-s-textile-export-msme-hubs-come-to-a-grinding-halt-11586284819285.html

  1. Covid-19 impact: Summer sales of consumer durables to be hit

https://www.livemint.com/industry/manufacturing/covid-19-impact-summer-sales-to-be-a-washout-for-consumer-durable-firms-11586075707788.html

  1. Indian startups were headed for a good year – and then coronavirus happened

https://scroll.in/article/958595/indian-startups-were-headed-for-a-good-year-and-then-the-coronavirus-happened

External Sector /Trade

  1.  Placing a new world order
    https://economictimes.indiatimes.com/blogs/et-commentary/covid-19-is-writing-a-new-world-order/
  2. India partially lift ban on HCQ export
    https://www.business-standard.com/article/current-affairs/covid-19-india-lifts-ban-on-export-of-paracetamol-hcq-to-other-nations-120040700358_1.html
  3. World trade fall mustn’t stoke export pessimism

https://www.livemint.com/opinion/online-views/world-trade-fall-mustn-t-stoke-export-pessimism-11586455050199.html

Banking and Monetary Policy

  1. NBFCs write to FM for 3-month moratorium
    https://timesofindia.indiatimes.com/business/india-business/nbfcs-write-to-fm-for-3-month-moratorium/articleshow/74975474.cms
  2. RBI cuts trade hours for 8 products
    https://economictimes.indiatimes.com/markets/stocks/news/rbi-cuts-trading-hours-for-forex-bond-and-money-markets/articleshow/74977666.cms
  3. NBFCs face twin challenge of debt payment, cash shortage
    https://economictimes.indiatimes.com/industry/banking/finance/nbfcs-face-twin-challenges-of-debt-repayment-cash-shortage/articleshow/75035991.cms?from=mdr
  4. RBI declines additional provisioning relief to banks
    https://www.financialexpress.com/industry/banking-finance/rbi-declines-additional-provisioning-relief-to-banks-on-unresolved-cases-via-ica/1923039/
  5. Coronavirus Outbreak: Govt to deposit Rs 1,000 in women PMJDY accounts in next two months in equal instalments

https://www.firstpost.com/business/coronavirus-outbreak-govt-to-deposit-rs-1000-in-women-pmjdy-accounts-in-next-two-months-in-equal-instalments-8244231.html

  1. Rupee ends 6 paise higher at 76.28; recovers from intra-day all-time low of 76.55 on forex inflows, firm equities

https://www.firstpost.com/business/rupee-ends-6-paise-higher-at-76-28-recovers-from-intra-day-all-time-low-of-76-55-on-forex-inflows-firm-equities-8243671.html

  1. Coronavirus outbreak has 'drastically altered' India's growth outlook, says RBI in Monetary Policy Report

https://www.firstpost.com/business/coronavirus-outbreak-has-drastically-altered-indias-growth-outlook-says-rbi-in-monetary-policy-report-8243321.html

  1. RBI asks HDFC Bank to submit proposal on two crucial appointments after new CEO takes over

https://www.firstpost.com/business/rbi-asks-hdfc-bank-to-submit-proposal-on-two-crucial-appointments-after-new-ceo-takes-over-8242861.html

  1. Coronavirus Outbreak: Bank of Baroda will provide financial support to women SHGs, FPOs

https://www.firstpost.com/business/coronavirus-outbreak-bank-of-baroda-will-provide-financial-support-to-women-shgs-fpos-8236671.html

  1. Rupee spurts 49 paise to close at 75.64; RBI reduces currency market trading timings from today

https://www.firstpost.com/business/rupee-spurts-49-paise-to-close-at-75-64-rbi-reduces-currency-market-trading-timings-from-today-8236191.html

  1. Indian banks are offering three-month moratoriums on loan repayments. What this means for you

https://scroll.in/article/958362/indian-banks-are-offering-three-month-moratoriums-on-loan-repayments-what-this-means-for-you

Agriculture

  1.  Centre asks states to ensure smooth harvesting, sowing activities
    https://m.economictimes.com/news/economy/agriculture/centre-asks-states-to-ensure-smooth-harvesting-sowing-activities/articleshow/74969522.cms
  2. Farmers are at their wits’ end
    https://www.thehindu.com/opinion/op-ed/farmers-are-at-their-wits-end/article31273857.ece
  3. Restructuring our food system for a healthy world
    https://www.thehindu.com/opinion/op-ed/restructuring-our-food-system-for-a-healthy-world/article31273787.ece
  4. What Does the COVID-19 Lockdown Mean for Food Security?

https://thewire.in/agriculture/what-does-the-covid-19-lockdown-mean-for-food-security

  1. External benchmarks helped improve rate transmission: RBI

https://www.livemint.com/industry/banking/external-benchmarks-helped-improve-rate-transmission-rbi-11586454373075.html

  1. RBI may announce separate credit line to rescue MFIs

https://www.livemint.com/industry/banking/rbi-may-announce-separate-credit-line-to-rescue-mfis-11586453553761.html

  1. Interest rate transmission improved after use of external benchmarks: RBI

https://www.livemint.com/industry/banking/interest-rate-transmission-improved-after-use-of-external-benchmarks-rbi-11586434727202.html

  1. Covid-19 impact: Banks offer lower rates, easier terms as credit growth declines

https://www.livemint.com/industry/banking/covid-19-impact-banks-offer-lower-rates-easier-terms-as-credit-growth-declines-11586429797975.html

Columns by Joseph Stiglitz and Paul Krugman

  1. Will we flunk pandemic economics
    https://www.nytimes.com/2020/04/06/opinion/coronavirus-economy.html
  2. American Democracy may be dying
    https://www.nytimes.com/2020/04/09/opinion/wisconsin-primary-democracy.html
  3. World must combat looming debt meltdown in developing countries
    https://www.theguardian.com/business/2020/apr/07/world-must-combat-looming-debt-meltdown-in-developing-countries-covid-19