18 - 24 April, 2020

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Weekly Updates on Indian Economy

(18th April 2020 to 24th April 2020)

National Accounts and state of the economy

  1. Rate of growth in cases down 40% since April 1
    https://timesofindia.indiatimes.com/india/rate-of-growth-in-covid-19-cases-down-40-since-april-1/articleshow/75212998.cms
  2. How cases doubled in india, elsewhere
    https://www.msn.com/en-in/news/fact-check/fact-check-how-coronavirus-cases-doubled-in-india-elsewhere/ar-BB12NPpE
  3. Das sees V shaped recovery, growth rate at 7.4 percent in FY22
    https://indianexpress.com/article/business/economy/shaktikanta-das-sees-v-shaped-recovery-growth-rate-at-7-4-in-fy22-6367483/
  4. Most sectors will be open by May 3, says Principal economic advisor
    https://www.thehindu.com/business/Economy/coronavirus-lockdown-most-sectors-will-be-open-by-may-3-says-principal-economic-adviser-sanjeev-sanyal/article31410421.ece
  5. Economy in the lockdown: On India’s worst case scenario
    https://www.thehindu.com/opinion/editorial/economy-in-lockdown-the-hindu-editorial-on-indias-worst-case-scenario-post-lockdown/article31383177.ece
  6. India’s growth may slip to 1.5 percent in FY21: CII
    https://www.thehindu.com/business/cii-says-india-growth-may-slip-to-15-in-fy21/article31418148.ece
  7. Challenge to get the economy back on track
    https://www.thehindu.com/news/national/karnataka/challenge-to-get-economy-back-on-track/article31409849.ece
  8. World economy bound to suffer serious recession: IMF
    https://www.thehindu.com/news/national/karnataka/challenge-to-get-economy-back-on-track/article31409849.ece
  9. Powering the post covid economy
    https://www.thehindubusinessline.com/opinion/powering-the-post-covid-economy/article31412293.ece
  10. India corona virus dispatch: a few notes on restarting the economy
    https://www.business-standard.com/article/current-affairs/india-coronavirus-dispatch-a-few-notes-on-restarting-the-economy-120042301510_1.html
  11. COVID-19 Economic Blow: ‘Jaan Bhi, Jahaan Bhi’ Needs a Bigger Stimulus
    https://thewire.in/economy/covid-19-economic-stimulus
  12. Is India Neglecting Its Migrant Workers Abroad?
    https://thewire.in/rights/is-india-neglecting-its-migrant-workers-abroad
  13. Fitch Ratings Sees India Growth Slipping to 0.8% in FY21
    https://thewire.in/economy/fitch-ratings-sees-india-growth-slipping-to-0-8-in-fy21
  14. Remittances to India Likely to Decline by 23% in 2020: World Bank
    https://thewire.in/economy/remittances-to-india-likely-to-decline-by-23-in-2020-world-bank
  15. Coronavirus pandemic likely to hit 29 lakh jobs in Indian aviation, dependent sectors; Rs 85,000-cr revenue loss : IATA
    https://www.firstpost.com/health/coronavirus-pandemic-likely-to-hit-29-lakh-jobs-in-indian-aviation-dependent-sectors-rs-85000-cr-revenue-loss-iata-8295461.html
  16. Battered by Covid-19 lockdown, India’s formal sector is resorting to massive layoffs and pay cuts
    https://scroll.in/article/959485/battered-by-covid-19-lockdown-indias-formal-sector-is-resorting-to-massive-layoffs-and-pay-cuts
  17. Covid-19: Fitch Ratings cuts India’s growth forecast to 0.8% for 2020-’21
    https://scroll.in/latest/960010/covid-19-fitch-ratings-cuts-indias-growth-forecast-to-0-8-for-2020-21
  18. Opinion | Indian Debt market, that never was
    https://www.livemint.com/opinion/online-views/opinion-indian-debt-market-that-never-was-11587701684568.html
  19. Covid-19 pandemic poses a threat to India’s steady flow of remittances
    https://www.livemint.com/market/mark-to-market/covid-19-pandemic-poses-a-threat-to-india-s-steady-flow-of-remittances-11587664670498.html
  20. Data unavailability main reason behind govt's inability to announce stimulus for businesses: Subhash Chandra Garg
    https://www.livemint.com/companies/people/data-unavailability-main-reason-behind-govt-s-inability-to-announce-stimulus-for-businesses-garg-11587658971021.html
  21. Opinion | When quarter-se-quarter-tak thinking is a letdown
    https://www.livemint.com/opinion/columns/when-quarter-se-quarter-tak-thinking-is-a-letdown-11587657634851.html
  22. Opinion | A policy window to set India up for a good economic recovery
    https://www.livemint.com/opinion/online-views/a-policy-window-to-set-india-up-for-a-good-economic-recovery-11587655730058.html
  23. Indian economy may shrink nearly 1% this fiscal, says CII
    https://www.livemint.com/companies/news/coronavirus-indian-economy-could-contract-as-much-as-minus-0-9-in-fy-2021-cii-11587645115150.html
  24. Locked-down Indian economy in its worst quarter since mid-1990s: Reuters poll
    https://www.livemint.com/news/india/locked-down-indian-economy-in-its-worst-quarter-since-mid-1990s-reuters-poll-11587642471427.html
  25. Fitch slashes India’s growth projection for FY21 to 0.8%
    https://www.livemint.com/news/india/fitch-slashes-india-growth-yet-again-pegs-it-at-0-8-for-fy21-11587615038527.html
  26. Coronavirus slump: NBFCs cast shadow on economic recovery
    https://www.livemint.com/news/india/coronavirus-slump-nbfcs-cast-shadow-on-economic-recovery-11587575824047.html
  27. Opinion | India’s opportunity for sustainable growth
    https://www.livemint.com/opinion/online-views/opinion-india-s-opportunity-for-sustainable-growth-11587716965607.html
  28. Opinion | Key sectors of India’s economy need support
    https://www.livemint.com/opinion/online-views/opinion-key-sectors-of-india-s-economy-need-support-11587399503986.html

     

Public Finance

  1. Large Fiscal stimulus needed
    https://timesofindia.indiatimes.com/blogs/toi-editorials/large-fiscal-stimulus-needed-else-were-looking-at-bankruptcies-mass-unemployment/
  2. Use tax salve to lessen covid-19 pain
    https://www.financialexpress.com/opinion/use-tax-salve-to-lessen-covid-19-pain/1932132/
  3. Centre’s financial package amounting to just 0.7 percent of GDP is inadequate
    https://www.thehindu.com/news/national/kerala/coronavirus-centres-financial-package-announced-at-just-7-of-gdp-is-inadequate-says-pinarayi-vijayan/article31368582.ece
  4. Central sanctions April instalments of tax share to states
    https://www.thehindubusinessline.com/economy/centre-sanctions-aprils-instalments-of-tax-share-to-states/article31390466.ece
  5. Opinion | There are ways to fund a ₹10 trillion fiscal plan
    https://www.livemint.com/opinion/online-views/there-are-ways-to-fund-a-10-trillion-fiscal-plan-11587487404294.html

Industry, Manufacturing, Services and Technology

  1. Manufacturers plan to soon resume operations in phases
    https://www.financialexpress.com/industry/covid-19-lockdown-manufacturers-plan-to-resume-operations-in-phases/1932024/
  2. No easy relief for NBFCs, MSMEs
    https://www.financialexpress.com/opinion/rbi-unleashes-liquidity-but-no-easy-relief-for-nbfcs-msmes/1932118/
  3. Industry hails RBI move
    https://www.thehindu.com/business/industry-hails-rbi-move/article31370236.ece
  4. Prolonged lock-down badly hurt auto clusters
    https://www.thehindubusinessline.com/opinion/powering-the-post-covid-economy/article31412293.ece
  5. Some Indian companies with Chinese investments indulge in predatory strategies: Think tank
    https://www.firstpost.com/business/some-indian-companies-with-chinese-investments-indulge-in-predatory-strategies-think-tank-8295581.html
  6. Covid-19 has given India chance to replace China as manufacturing hub: USISPF
    https://www.livemint.com/news/world/covid-19-has-given-india-chance-to-replace-china-as-manufacturing-hub-usispf-11587609543270.html
  7. India’s electricity demand sees drop despite factories reopening
    https://www.livemint.com/companies/news/india-s-electricity-demand-sees-drop-despite-factories-reopening-11587543105249.html
  8. How worried  are  firms  about coronavirus?
    https://www.livemint.com/news/india/how-worried-are-firms-about-coronavirus-11587496858879.html
  9. Global firms look to shift from China to India
    https://www.livemint.com/industry/manufacturing/global-firms-look-to-shift-from-china-to-india-11587494725838.html

External Sector

  1. China economy shrinks, ending five-decade run
    https://www.nytimes.com/2020/04/16/business/china-coronavirus-economy.html
  2. From Manufacturing to Start-Ups, India’s Low Wall Against Chinese FDI Sets off Rippling Side-Effects
    https://thewire.in/economy/from-manufacturing-to-start-ups-indias-low-wall-against-chinese-fdi-sets-off-rippling-side-effects
  3. Is India's Scrutiny of Chinese FDI a Temporary Move or Part of a Sustained Future Strategy?
    https://thewire.in/economy/india-china-foreign-direct-investment
  4. Why India’s petrol prices remain flat despite global crude oil crash
    https://scroll.in/article/960046/why-indias-petrol-prices-remain-flat-despite-global-crude-oil-crash
  5. Oil crash adds new shock to limping world economy
    https://www.livemint.com/news/world/oil-crash-adds-new-shock-to-limping-world-economy-11587515713114.html

Banking and Monetary Policy

  1. RBI throws 2nd 1L cr lifeline, prompts Banks to lend more
    https://timesofindia.indiatimes.com/city/mumbai/rbi-throws-2nd-rs-1l-cr-lifeline-prompts-banks-to-lend-more/articleshow/75212302.cms
  2. More credit to stressed sectors
    https://www.financialexpress.com/economy/rbi-measures-2-0-more-credit-to-stressed-sectors/1932182/
  3. Banks NBFCs get NPA relief with 10 % additional provisioning
    https://economictimes.indiatimes.com/news/economy/policy/in-relief-to-borrowers-and-banks-rbi-exempts-accounts-with-moratorium-benefits-from-asset-recognition-norms-for-90-days/articleshow/75199222.cms?from=mdr
  4. RBI provides 50000 cr refinance facility to AIFIs
    https://www.financialexpress.com/economy/rbi-to-provide-rs-50000-crore-refinance-facility-to-aifis/1931999/
  5. Ways and means advances: what is it and how far will relaxation of limit help
    https://in.news.yahoo.com/ways-means-advances-far-relaxation-203302050.html
  6. weak economic outlook to give small finance banks more time to get listed
    https://www.business-standard.com/article/finance/weak-economic-outlook-to-give-small-finance-banks-more-time-to-get-listed-120042301444_1.html
  7. TLTRO 2.0: Banks scupper RBI plan to offer special liquidity to NBFCs as repo auction gets 50% bids
    https://www.firstpost.com/business/tltro-2-0-banks-scupper-rbi-plan-to-offer-special-liquidity-to-nbfcs-as-repo-auction-gets-50-bids-8295391.html
  8. RBI receives 12,850 cr bids for TLTRO 2.0 against Rs 25,000 cr offered by central bank
    https://www.firstpost.com/business/rbi-receives-12850-cr-bids-for-tltro-2-0-against-rs-25000-cr-offered-by-central-bank-8292491.html
  9. Rupee surges by 62 paise to close at 76.06; investor sentiment strengthens after RBI announces special OMO
    https://www.firstpost.com/business/rupee-surges-by-62-paise-to-close-at-76-06-investor-sentiment-strengthens-after-rbi-announces-special-omo-8292401.html
  10. Coronavirus Outbreak: Moody's says loan moratorium may lead to greater build-up of credit losses for banks
    https://www.firstpost.com/business/coronavirus-outbreak-moodys-says-loan-moratorium-may-lead-to-greater-build-up-of-credit-losses-for-banks-8282421.html
  11. Indian banks are using data from mobile bills and e-shopping to check customers’ creditworthiness
    https://scroll.in/article/959847/indian-banks-are-using-data-from-mobile-bills-and-e-shopping-to-check-customers-creditworthiness
  12. Govt pushes lending, asks banks for daily reports on new loans
    https://www.livemint.com/news/india/govt-pushes-lending-asks-banks-for-daily-reports-on-new-loans-11587641327378.html
  13. RBI vows to do all it takes to boost Indian economy
    https://www.livemint.com/news/india/rbi-vows-to-do-all-it-takes-to-boost-indian-economy-11587150052720.html
  14. Priority sector relief for banks under TLTRO 2.0
    https://www.livemint.com/news/india/rbi-sweetens-tltro-norms-for-banks-with-priority-sector-status-11587461415140.html
  15. RBI raises short-term borrowing cap for the Centre to ₹2 trillion
    https://www.livemint.com/industry/banking/rbi-raises-wma-limit-for-central-government-11587388128386.html
  16. At mercy of banks, India's cash-tight shadow lenders face new turmoil
    https://www.livemint.com/industry/banking/at-mercy-of-banks-india-s-cash-tight-shadow-lenders-face-new-turmoil-11587381856139.html

Agriculture

  1. Short on labourers, a long harvest
    https://www.thehindu.com/news/national/other-states/farming-under-lockdown-short-on-labourers-a-long-harvest/article31370176.ece
  2. Lockdown relief to agriculture activities lifts sentiment
    https://www.business-standard.com/article/markets/covid-19-impact-lockdown-relief-to-agricultural-activities-lifts-sentiment-120041501464_1.html
  3. India’s lockdown has put 16 million fisherfolk out of business. Here’s how they’re coping
    https://scroll.in/article/959062/indias-lockdown-has-put-16-million-fisherfolk-out-of-business-heres-how-theyre-coping
  4. Agrarian economy poised for a revival as curbs eased
    https://www.livemint.com/news/india/farm-economy-to-open-up-as-restriction-start-to-ease-11587357384853.html
  5. Govt cuts subsidy for non-urea fertilisers, to cost ₹22,186.55 crore for FY21
    https://www.livemint.com/industry/agriculture/govt-cuts-subsidy-for-non-urea-fertilisers-to-cost-22-186-55-crore-for-fy21-11587556363350.html

Columns by Joseph Stiglitz and Paul Krugman

  1. McConnell to Every State: Drop Dead
    https://www.nytimes.com/2020/04/23/opinion/mcconnell-coronavirus-states.html
  2. The Right Sends In the Quacks: Covid-19 highlights the conservative reliance on fake experts.
    https://www.nytimes.com/2020/04/20/opinion/coronavirus-conservatives.html