25 April- 01 May, 2020

Home » Publication » Weekly Updates on Indian Economy prepared by GIFT Young Scholars Forum »  25 April- 01 May, 2020

Weekly Updates on Indian Economy

(25th April 2020 to 01st May 2020)

National Accounts and state of the economy

India Needs to Open Economy in Measured Way, Says Raghuram Rajan
https://thewire.in/economy/india-economy-covid-19-raghuram-rajan-rahul-gandhi

Moody's Slashes India's Growth Estimate to 0.2% for 2020, Expects Rebound Next Year
https://thewire.in/economy/moodys-slashes-indias-growth-estimate-to-0-2-for-2020-expects-rebound-next-year

Rupee surges 52 paise to close at four-week high of 75.66; dollar weakens in overseas market
https://www.firstpost.com/business/rupee-surges-52-paise-to-close-at-four-week-high-of-75-66-dollar-weakens-in-overseas-market-8312121.html

Covid-19: Crisil Research says pandemic may cause permanent loss of 4% in India’s GDP
https://scroll.in/latest/960685/covid-19-crisil-research-says-pandemic-may-cause-permanent-loss-of-4-in-indias-gdp

Most countries likely to go into recession, but India will see positive growth: Former RBI director
https://scroll.in/article/960363/most-countries-likely-to-go-into-recession-but-india-will-see-positive-growth-former-rbi-director

Covid-19: How Indians facing a cash crunch can manage their personal finances
https://scroll.in/article/960280/covid-19-how-indians-facing-a-cash-crunch-can-manage-their-personal-finances

We need immediate stimulus of around 5% of GDP: Rakesh Mohan
https://www.livemint.com/news/india/we-need-immediate-stimulus-of-around-5-of-gdp-rakesh-mohan-11588272118064.html

Virus could bounce back, yet economy needs to kick start for livelihoods: Amitabh Kant
https://www.livemint.com/news/india/virus-could-bounce-back-yet-economy-needs-to-kick-start-for-livelihoods-amitabh-kant-11588259057512.html

India must open its economy in a quick, measured way, says Raghuram Rajan
https://www.livemint.com/news/india/india-must-reopen-its-economy-quickly-but-in-a-measured-way-raghuram-rajan-11588222396396.html

Nearly half of world workforce may lose job due to Covid-19 pandemic: UN body
https://www.livemint.com/news/world/nearly-half-of-world-workforce-may-lose-job-due-to-covid-19-pandemic-un-body-11588214875137.html

Opinion | The Greater Depression that we might be staring at this decade
https://www.livemint.com/opinion/online-views/the-greater-depression-that-we-might-be-staring-at-this-decade-11588176548533.html

India needs a ₹10 tn stimulus to tide over a contraction in GDP: Arvind Subramanian
https://www.livemint.com/news/india/india-should-plan-for-substantial-contraction-in-fy21-economy-former-cea-11588080616909.html

Opinion | How the economy could roar to life after the lockdown is lifted
https://www.livemint.com/opinion/columns/how-the-economy-could-roar-to-life-after-the-lockdown-is-lifted-11588006308879.html

Developing economies could see sharper recession in 2020, warns World Bank
https://www.livemint.com/news/world/developing-economies-could-see-sharper-recession-in-2020-warns-world-bank-11587754895899.html

It is the time for some hard decisions
https://www.thehindubusinessline.com/opinion/columns/r-srinivasan/its-time-for-some-hard-decisions/article31465360.ece

1.6 billion workers in informal sector likely to lose jobs: UN labour body
https://www.thehindubusinessline.com/economy/16-billion-workers-in-informal-sector-likely-to-lose-jobs-un-labour-body/article31469793.ece

Moody’s cuts growth forecast to 0.2% for CY20
https://www.thehindubusinessline.com/economy/moodys-cuts-growth-forecast-to-02-for-cy20/article31456628.ece

Asia-Pacific region was slowing even before Covid-19 pandemic: ESCAP Survey
https://www.thehindubusinessline.com/economy/asia-pacific-region-was-slowing-even-before-covid-19-pandemic-escap-survey/article31287163.ece

Print money, save economy
https://economictimes.indiatimes.com/markets/stocks/news/print-money-save-economy/need-for-stimulus/slideshow/75486523.cms

Another round of lockdown will be devastating, says Raghuram Rajan https://economictimes.indiatimes.com/news/economy/policy/another-round-of-lockdown-will-be-devastating-says-raghuram-rajan/articleshow/75463615.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

India faces downgrade by Moody’s, change in outlook to negative by Fitch: Nomura https://economictimes.indiatimes.com/news/economy/indicators/india-faces-downgrade-by-moodys-change-in-outlook-to-negative-by-fitch-nomura/articleshow/75462221.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Public Finance

Govt seeks suggestions from auto industry leaders for resource mop-up; sector demands financial package
https://www.firstpost.com/business/govt-seeks-suggestions-from-auto-industry-leaders-for-resource-mop-up-sector-demands-financial-package-8317181.html

Opinion | Ease legal constraints on fiscal expenditure
https://www.livemint.com/opinion/online-views/opinion-ease-legal-constraints-on-fiscal-expenditure-11588182095065.html

Centre should announce fiscal package of Rs 3.50 lakh crore, says SBI report
https://www.thehindubusinessline.com/economy/policy/centre-should-announce-fiscal-package-of-rs-350-lakh-crore-says-sbi-report/article31289907.ece

Shaktikanta Das calls for fiscal support to economy
https://economictimes.indiatimes.com/news/economy/indicators/india-will-probably-miss-deficit-goal-shaktikanta-das-tells-cogencis/articleshow/75404740.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Taxation

Coronavirus Outbreak: CBDT third-time defers GST, GAAR reporting in Income-Tax audit report till March 2021
https://www.firstpost.com/business/coronavirus-outbreak-cbdt-third-time-defers-gst-gaar-reporting-in-income-tax-audit-report-till-march-2021-8306991.html

Opinion | Kickstart business by fresh lending using securitisation of GST credit
https://www.livemint.com/opinion/online-views/opinion-kickstart-business-by-fresh-lending-using-securitisation-of-gst-credit-11588317564869.html

GST collection may show negative growth into September: GIFT Study
https://www.thehindubusinessline.com/opinion/columns/r-srinivasan/its-time-for-some-hard-decisions/article31465360.ece

Undeterred by lockdown, GST staff process over 10,000 new registrations
https://www.thehindubusinessline.com/economy/macro-economy/gst-officers-process-10077-new-registrations-7876-refund-applications-in-10-days-of-lockdown/article31261889.ece

 

Industry, Manufacturing, Services and Technology

COVID-19: Why Not Tweak and Expand the MUDRA Scheme to Throw a Lifeline to MSMEs?
https://thewire.in/economy/covid-19-expand-mudra-scheme-msme

Need to Support Businesses to Tide Over Impact of COVID-19: India at BRICS
https://thewire.in/world/india-brics-covid-19

Indian tech-led startups attract funding worth $2.5 billion in first quarter of 2020, up 14% on-year: Report
https://www.firstpost.com/business/indian-tech-led-startups-attract-funding-worth-2-5-billion-in-first-quarter-of-2020-up-14-on-year-report-8307241.html

Industry calls for stimulus, graded exit from lockdown
https://www.livemint.com/news/india/industry-calls-for-stimulus-graded-exit-from-lockdown-11588273423273.html

Steel sector output shrunk -13.05% in March 2020
https://www.livemint.com/industry/manufacturing/steel-sector-output-shrunk-13-05-in-march-2020-11588254472115.html

Natural Gas sector output shrunk -15.21% in March 2020
https://www.livemint.com/industry/manufacturing/natural-gas-sector-output-shrunk-15-21-in-march-2020-11588254307720.html

Coal sector output grew 3.96% in March 2020
https://www.livemint.com/industry/manufacturing/coal-sector-output-grew-3-96-in-march-2020-11588254213066.html

Fertilizers sector output shrunk -11.85% in March 2020
https://www.livemint.com/industry/manufacturing/fertilizers-sector-output-shrunk-11-85-in-march-2020-11588254096421.html

Electricity sector output shrunk -7.22% in March 2020
https://www.livemint.com/industry/manufacturing/electricity-sector-output-shrunk-7-22-in-march-2020-11588253995020.html

The lingering effect of Covid on services trade
https://www.business-standard.com/article/opinion/the-lingering-effect-of-covid-on-services-trade-120043001823_1.html

Giving teeth to bankruptcy code
https://www.business-standard.com/article/opinion/giving-teeth-to-bankruptcy-code-120043001758_1.html

Centre mulls extending interest subsidy scheme for exporters
https://www.thehindubusinessline.com/economy/policy/centre-mulls-extending-interest-subsidy-scheme-for-exporters/article31456260.ece

Lockdown has cut India's energy demand by 30%, says report
https://www.thehindubusinessline.com/economy/when-big-consumer-like-india-goes-into-lockdown-it-reduces-energy-demand-by-about-30/article31469208.ece

Eight core industries output shrunk -6.47% in March 2020
https://www.livemint.com/industry/manufacturing/eight-core-industries-output-shrunk-6-47-in-march-2020-11588253541334.html

Medicine factories are yet to get back to 50% of capacity
https://www.livemint.com/industry/manufacturing/medicine-factories-are-yet-to-get-back-to-50-of-capacity-11588176674655.html

Organized retail now accounts for 30% of FMCG sales in metro cities: Nielse
https://www.livemint.com/industry/retail/organiz
ed-retail-now-account-for-30-of-fmcg-sales-in-metro-cities-nielsen-11588256571543.html

New e-commerce portal to help small retailers fight Amazon, Flipkart
https://www.livemint.com/industry/retail/new-e-commerce-portal-to-help-small-retailers-fight-amazon-flipkart-11587724387174.html

Lockdown impact: Packaging-material makers face challenges on the ground
https://www.thehindubusinessline.com/companies/lockdown-impact-packaging-material-makers-face-challenges-on-the-ground/article31250280.ece

India's telecom sector could face another test, this time from CCI
https://www.business-standard.com/article/opinion/india-s-telecom-sector-could-face-another-test-this-time-from-cci-119111900472_1.html

Banking and Monetary Policy

After Franklin Fiasco, RBI Steps in With Rs 50,000 Crore Liquidity Support for Mutual Funds
https://thewire.in/economy/after-franklin-fiasco-rbi-steps-in-with-rs-50000-crore-liquidity-support-for-mutual-funds

RBI extends regulatory benefits under special liquidity facility for mutual funds to all banks
https://www.firstpost.com/business/rbi-extends-regulatory-benefits-under-special-liquidity-facility-for-mutual-funds-to-all-banks-8317401.html

RBI extends curbs on Mumbai-based The Needs of Life Co-op Bank for six months
https://www.firstpost.com/business/rbi-extends-curbs-on-mumbai-based-the-needs-of-life-co-op-bank-for-six-months-8312631.html

Coronavirus Outbreak: Banks have done nothing to help retailers to tide over lockdown crisis, says industry body
https://www.firstpost.com/business/coronavirus-outbreak-banks-have-done-nothing-to-help-retailers-to-tide-over-lockdown-crisis-says-industry-body-8303671.html

Opinion | A big-bang stimulus needn’t unsettle RBI
https://www.livemint.com/opinion/online-views/a-big-bang-stimulus-needn-t-unsettle-rbi-11588096619301.html

Banks' bad assets may rise to 11-11.5% in FY21, says Crisil
https://www.livemint.com/industry/banking/banks-bad-assets-may-rise-to-11-11-5-in-fy21-says-crisil-11588304040207.html

Fitch downgrades viability ratings of four Indian banks citing covid-19 impact
https://www.livemint.com/industry/banking/fitch-downgrades-viability-ratings-of-four-indian-banks-citing-covid-19-impact-11588258121186.html

RBI beats US Federal Reserve, European Central Bank hands down on Twitter
https://www.livemint.com/industry/banking/rbi-beats-us-federal-reserve-european-central-bank-hands-down-on-twitter-11588241057375.html

Banks borrow ₹2,000 crore from RBI for mutual fund liquidity
https://www.livemint.com/industry/banking/banks-borrow-rs-2-000-crore-from-rbi-for-mutual-fund-liquidity-11588131623779.html

Lenders see bad loans climbing
https://www.livemint.com/industry/banking/banks-may-see-spike-in-npas-after-lockdown-early-trends-show-11588072759093.html

With RBI rate cut, credit growth picks up 100 basis points
https://www.livemint.com/industry/banking/with-rbi-rate-cut-credit-growth-picks-up-100-basis-points-11587959537498.html

PSB branches bear brunt of circular on loans
https://www.livemint.com/industry/banking/under-fire-for-poor-credit-pickup-psu-bank-officials-in-a-catch-22-situation-11587901772406.html

RBI extends SLF-MF scheme to all banks
https://www.thehindubusinessline.com/money-and-banking/rbi-extends-slf-mf-scheme-to-all-banks/article31470461.ece

RBI extends deadline for submission of regulatory returns by banks
https://www.thehindubusinessline.com/money-and-banking/rbi-extends-deadline-for-submission-of-regulatory-returns-by-banks/article31474052.ece

Say no to banks
https://www.business-standard.com/article/opinion/say-no-to-banks-120043001802_1.html

Agriculture

COVID-19 Lockdown: In April, MGNREGA Work Crashed to Lowest in 7 Years
https://thewire.in/labour/covid-19-lockdown-mgnrega

'We Are in a Crisis': Fear of Uncertain Employment, Livelihood Grips Migrant and Sex Workers
https://thewire.in/rights/lockdown-migrant-sex-workers

Reinventing Agriculture in the Time of COVID-19
https://thewire.in/agriculture/reinventing-agriculture-in-the-time-of-covid-19

UP farmers not happy with govt’s sugar offer
https://www.thehindubusinessline.com/economy/agri-business/up-farmers-not-happy-with-govts-sugar-offer/article31464007.ece

Agricultural growth to be 3 per cent this year
https://www.thehindubusinessline.com/economy/agri-business/agricultural-growth-to-be-3-per-cent-this-year-ramesh-chand-of-niti-aayog/article31464347.ece

Centre asks States to ensure smooth harvesting, sowing operations
https://www.thehindubusinessline.com/economy/agri-business/centre-asks-states-to-ensure-smooth-harvesting-sowing-operations/article31251218.ece

External Sector

India’s exports can bounce back on graded lockdown exit, phased resumption of manufacturing activities, says EEPC Chairman
https://www.thehindubusinessline.com/economy/indias-exports-can-bounce-back-on-graded-lockdown-exit-phased-resumption-of-manufacturing-activities-says-eepc-chairman/article31463130.ece

As China stumbles, India plans big exports push in bulk drugs https://economictimes.indiatimes.com/news/economy/foreign-trade/as-china-stumbles-india-plans-big-exports-push-in-bulk-drugs/articleshow/75480532.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

India maps out post-Covid export plan to take on China https://economictimes.indiatimes.com/news/economy/foreign-trade/india-maps-out-post-covid-export-plan-to-take-on-china/articleshow/75457477.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Columns by Joseph Stiglitz and Paul Krugman

Crashing Economy, Rising Stocks: What’s Going On?
https://www.nytimes.com/2020/04/30/opinion/economy-stock-market-coronavirus.html

Peacocks and Vultures Are Circling the Deficit
https://www.nytimes.com/2020/04/27/opinion/republicans-deficits-coronavirus.html