Weekly Updates on Indian Economy

(16^h May 2020 to 22^nd May 2020)

National Accounts and state of the economy

How public health boosts an economy
https://www.thehindu.com/opinion/op-ed/how-public-health-boosts-an-economy/article31635362.ece

A callous response
https://www.thehindu.com/opinion/op-ed/a-callous-response/article31626058.ece

Will economic reforms continue after the crisis?
https://www.thehindubusinessline.com/markets/stock-markets/will-economic-reforms-continue-after-the-crisis/article31649905.ece

Economic package a lost opportunity; FY21 GDP to contract 7%: Bernstein
https://www.business-standard.com/article/economy-policy/economic-package-a-lost-opportunity-fy21-gdp-to-contract-7-bernstein-120051800729_1.html

Indian economy to contract by over 10% in FY21
https://www.thehindu.com/business/indian-economy-to-contract-by-over-10-in-fy21/article31603545.ece

RBI forecasts economic contraction, announces a sharp 40-bp rate cut
https://www.business-standard.com/article/finance/rbi-projects-economic-contraction-goes-for-a-sharp-40-bps-rate-cut-120052201220_1.html

Finance Ministry cautiously optimistic about economic revival in late FY21
https://www.business-standard.com/article/economy-policy/finance-ministry-cautiously-optimistic-about-economic-revival-in-late-fy21-120052001637_1.html

RBI Cuts Interest Rates, Estimates 2020-21 GDP Growth to Stay in 'Negative Territory'

https://thewire.in/economy/rbi-interest-rate-cut-gdp-growth

What Does Being ‘Vocal about Local’ Mean for India’s Global Trade Strategy? 

https://thewire.in/economy/india-global-trade-vocal-about-local

Why the Economic Crisis Shouldn't Become an Opportunity for More GDP Talk

https://thewire.in/economy/why-the-economic-crisis-shouldnt-become-an-opportunity-for-more-gdp-talk

India Faces a Major Economic Catastrophe, PMO Can't Handle By Itself, Says Raghuram Rajan

https://thewire.in/political-economy/india-faces-a-major-economic-catastrophe-pmo-cant-handle-by-itself-says-raghuram-rajan

For India to Become Atmanirbhar in 10 Years, Do Indians Have to be Atmanirbhar Now?

https://thewire.in/economy/india-atmanirbhar-package-nirmala-sitharaman

The Modi Sarkar’s Project for India’s Informal Economy

https://thewire.in/political-economy/the-modi-sarkars-project-for-indias-informal-economy

COVID-19 in South Asia: India Lags Behind Pak on Stimulus, Lanka on Overall Performance

https://thewire.in/political-economy/covid-19-in-south-asia-india-lags-behind-pak-on-stimulus-lanka-on-overall-performance

In a Post-COVID-19 World, the Only Way Ahead for India Is Economic Federalism

https://thewire.in/political-economy/covid-19-economic-federalism

Indian economy to contract in FY21; lockdown compounds economic challenges, says Moody's

https://www.firstpost.com/business/indian-economy-to-contract-in-fy21-lockdown-compounds-economic-challenges-says-moodys-8396471.html

Covid-19: India to experience worst recession with 45% fall in second quarter, says Goldman Sachs

https://scroll.in/latest/962250/covid-19-india-to-experience-worst-recession-with-45-fall-in-second-quarter-says-goldman-sachs

How covid-19 boosted the Insta knowledge economy

https://www.livemint.com/mint-lounge/features/how-covid-19-boosted-the-insta-knowledge-economy-11590135498069.html

The healthy way to fix the economy

https://www.livemint.com/news/india/the-healthy-way-to-fix-the-economy-11590075276838.html

Lockdown: March worst month in FY20 for employment as new jobs slump 46%

https://www.livemint.com/news/india/lockdown-march-worst-month-in-fy20-for-employment-as-new-jobs-slump-46-11590047518691.html

Growth this fiscal depends on intensity of covid-19: FinMin report

https://www.livemint.com/news/india/growth-this-fiscal-depends-on-intensity-of-covid-19-finmin-report-11589990547022.html

Icra warns of deep recession, GDP to contract 5% in FY21

https://www.livemint.com/news/india/icra-warns-of-deep-recession-gdp-to-contract-5-in-fy21-11589987219870.html

India’s economic momentum lags most emerging market peers

https://www.livemint.com/news/india/india-s-economic-momentum-lags-most-emerging-market-peers-11589968548576.html

IMF chief Kristalina Georgieva warns full global economic recovery unlikely in 2021

https://www.livemint.com/news/world/imf-chief-kristalina-georgieva-warns-full-global-economic-recovery-unlikely-in-2021-11589817166913.html

Indian economy to contract 5% in FY21: Goldman Sachs

https://www.livemint.com/news/india/indian-economy-to-contract-5-in-fy21-goldman-sachs-11589812482970.html

An economic inefficiency we can’t ignore

https://www.livemint.com/opinion/quick-edit/an-economic-inefficiency-we-can-t-ignore-11589792102101.html

Lack of robust stimulus may fail to lift economy

https://www.livemint.com/politics/policy/lack-of-robust-stimulus-may-fail-to-lift-economy-11589740050930.html

 

Public Finance

No restrictions on utilisation of additional borrowing by states: FinMin
https://www.business-standard.com/article/economy-policy/no-restrictions-on-utilisation-of-additional-borrowing-by-states-finmin-120052101788_1.html
Coronavirus package | Centre throws open all sectors to private players
https://www.thehindu.com/business/Economy/coronavirus-package-centre-throws-open-all-sectors-to-private-players/article31610628.ece

RBI measures, along with Centre’s stimulus, will revive growth
https://www.thehindubusinessline.com/money-and-banking/rbi-measures-along-with-centres-stimulus-will-revive-growth/article31650599.ece

SIAM says auto sector left out in economic package; to seek govt's direct intervention for revival of industry

https://www.firstpost.com/business/siam-says-auto-sector-left-out-in-economic-package-to-seek-govts-direct-intervention-for-revival-of-industry-8379691.html

Centre's adoption of coercive federalism over co-operation with states has hampered response to COVID-19, migrant crisis

https://www.firstpost.com/india/centres-adoption-of-coercive-federalism-over-co-operation-with-states-has-hampered-response-to-covid-19-migrant-crisis-8376701.html

Opinion | All our fiscal options should be kept open

https://www.livemint.com/opinion/online-views/all-our-fiscal-options-should-be-kept-open-11589993248856.html

 

Taxation

Govt refunds ₹26,000 crore to 1.6 million taxpayers

https://www.livemint.com/news/india/govt-refunds-rs-26-000-crore-to-1-6-million-tax-payers-11590149313544.html

Ensure income for poor, invest in infrastructure: Thomas Piketty
https://economictimes.indiatimes.com/news/economy/policy/ensure-income-for-poor-invest-in-infrastructure-thomas-piketty/articleshow/75766314.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Income Tax dept issues refunds of Rs 26,242 crore since April https://economictimes.indiatimes.com/news/economy/finance/income-tax-dept-issues-refunds-of-rs-26242-crore-since-april/articleshow/75891626.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Centre sanctions Rs 46,038.70 cr as states' shares in taxes for May https://economictimes.indiatimes.com/news/economy/indicators/centre-sanctions-rs-46038-70-cr-as-states-shares-in-taxes-for-may/articleshow/75853850.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

CBDT notifies safe harbour rates for 2019-20 fiscal https://economictimes.indiatimes.com/news/economy/policy/cbdt-notifies-safe-harbour-rates-for-2019-20-fiscal/articleshow/75868673.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Industry, Manufacturing, Services and Technology

Benefits of RBI announcements not being passed on realty sector:CREDAI
https://www.thehindu.com/news/cities/Hyderabad/benefits-of-rbi-announcements-not-being-passed-on-realty-sectorcredai/article31653109.ece

Coronavirus pandemic pushes private healthcare industry into financial stress
https://www.thehindubusinessline.com/economy/coronavirus-pandemic-pushes-private-healthcare-industry-into-financial-stress/article31640486.ece

Once the economy emerges out of this crisis, new investment themes would emerge
https://www.thehindubusinessline.com/economy/once-the-economy-emerges-out-of-this-crisis-new-investment-themes-would-emerge/article31612020.ece

Linking borrowings with reforms will help States
https://www.thehindubusinessline.com/economy/linking-borrowings-with-reforms-will-help-states/article31643835.ece

Will India's MSME Package do Enough to Blunt the Adverse Effects of the Lockdown?

https://thewire.in/economy/will-indias-msme-package-do-enough-to-blunt-the-adverse-effects-of-the-lockdown

Nirmala Sitharaman's economic package: Measures announced by govt to positively impact start-up ecosystem, says IAN

https://www.firstpost.com/business/nirmala-sitharamans-economic-package-measures-announced-by-govt-to-positively-impact-start-up-ecosystem-says-ian-8378271.html

By relaxing labour laws, are we competing with authoritarian markets like China?

https://scroll.in/article/962454/by-relaxing-labour-laws-are-we-competing-with-authoritarian-markets-like-china

For India’s $200-billion IT industry, what does a post-lockdown future look like?

https://scroll.in/article/961619/for-indias-200-billion-it-industry-what-does-a-post-lockdown-future-look-like

Travel and tourism industry in shock with no relief measures from govt

https://www.livemint.com/news/india/travel-and-tourism-industry-in-shock-with-no-relief-measures-from-govt-11589722537599.html

Small auto parts suppliers fear closure with demand freezing

https://www.livemint.com/industry/manufacturing/small-auto-parts-suppliers-fear-closure-with-demand-freezing-11590078977212.html

 

Banking and Monetary Policy

Experts disagree with MPC stance that inflation will fall below 4% in H2
https://www.business-standard.com/article/economy-policy/experts-disagree-with-mpc-stance-that-inflation-will-fall-below-4-in-h2-120052200762_1.html

Demand for loans shrinks despite liquidity injection
https://www.hindustantimes.com/business-news/demand-for-loans-shrinks-despite-liquidity-injection/story-2tjvVJ42htFthYq27fksyM.html

Further rate cuts may boost credit-led growth
https://www.thehindubusinessline.com/opinion/further-rate-cuts-may-boost-credit-led-growth/article31649831.ece

RBI cuts repo rate by 40 bps: It is unexpected like rain in summer; regulatory, monetary measures to boost economy, say experts

https://www.firstpost.com/business/rbi-cuts-repo-rate-by-40-bps-it-is-unexpected-like-rain-in-summer-regulatory-monetary-measures-to-boost-economy-say-experts-8396281.html

RBI cuts repo rate by 40 bps: It is unexpected like rain in summer; regulatory, monetary measures to boost economy, say experts

https://www.firstpost.com/business/rbi-cuts-repo-rate-by-40-bps-it-is-unexpected-like-rain-in-summer-regulatory-monetary-measures-to-boost-economy-say-experts-8396281.html

RBI monetary policy: Central bank extends moratorium on loans for another 3 months till August

https://www.firstpost.com/business/rbi-monetary-policy-central-bank-extends-moratorium-on-loans-for-another-3-months-till-august-8396481.html

RBI monetary policy: Central bank extends Rs 15,000-cr credit line to EXIM Bank to help revive sagging foreign trade

https://www.firstpost.com/business/rbi-monetary-policy-central-bank-extends-rs-15000-cr-credit-line-to-exim-bank-to-help-revive-sagging-foreign-trade-8396291.html

RBI monetary policy: GDP growth in 2020-21 likely to be in negative territory, says Shaktikanta Das

https://www.firstpost.com/business/rbi-monetary-policy-gdp-growth-in-2020-21-likely-to-be-in-negative-territory-says-shaktikanta-das-8396301.html

Coronavirus Outbreak: RBI cuts repo rate by 40 bps to 4%; full text of Shaktikanta Das' statement

https://www.firstpost.com/business/coronavirus-outbreak-rbi-cuts-repo-rate-by-40-bps-to-4-full-text-of-shaktikanta-das-statement-8395771.html

AIBOC flays govt's decision to privatise PSUs; says move 'does not promote self-reliance but destroys foundation of economy'

https://www.firstpost.com/business/bank-union-aiboc-expresses-strong-opposition-to-central-govts-decision-of-privatisation-of-psus-8387651.html

Coronavirus Lockdown: Rs 6.45 lakh cr worth loans sanctioned by PSBs during 1 March-15 May, says Nirmala Sitharaman

https://www.firstpost.com/business/coronavirus-lockdown-rs-6-45-lakh-cr-worth-loans-sanctioned-by-psbs-during-1-march-15-may-says-nirmala-sitharaman-8382961.html

Coronavirus Lockdown: RBI may extend moratorium on repayment of loans for three more months, says report

https://www.firstpost.com/business/coronavirus-lockdown-rbi-may-extend-moratorium-on-repayment-of-loans-for-three-more-months-says-report-8378961.html

RBI's surprise rate cut, shift in focus to growth, loan moratorium and more

https://www.livemint.com/industry/banking/rbi-s-surprise-rate-cut-shift-in-focus-to-growth-loan-moratorium-and-more-11590146258765.html

RBI on Covid-19: From inflation over growth to inflation and growth

https://www.livemint.com/opinion/columns/rbi-on-covid-19-from-inflation-over-growth-to-inflation-and-growth-11590132149787.html

RBI waves its monetary tools

https://www.livemint.com/opinion/quick-edit/rbi-waves-its-monetary-tools-11590129135178.html

RBI: Working capital borrowers can repay accrued interest till March 2021

https://www.livemint.com/industry/banking/rbi-working-capital-borrowers-can-repay-accrued-interest-till-march-2021-11590121981251.html

India Inc sees ray of hope from RBI relief measures

https://www.livemint.com/industry/banking/india-inc-sees-ray-of-hope-from-rbi-relief-measures-11590148333604.html

RBI's 5 key announcements today: Repo rate cut to an extension on loan moratorium

https://www.livemint.com/industry/banking/repo-rate-cut-extension-on-moratorium-rbi-s-5-key-announcements-today-11590130455293.html

₹6.45 lakh cr worth loans sanctioned by PSBs during March 1-May 15

https://www.livemint.com/industry/banking/rs-6-45-lakh-cr-worth-loans-sanctioned-by-psbs-during-march-1-may-15-11589873870634.html

Economic package for NBFCs, MSMEs needs speedy implementation: India Ratings

https://www.livemint.com/industry/banking/economic-package-for-nbfcs-msmes-needs-speedy-implementation-india-ratings-11589947408857.html

RBI policy: Economists seek removal of reverse repo window ahead of MPC meeting

https://www.livemint.com/industry/banking/rbi-policy-economists-seek-removal-of-reverse-repo-window-ahead-of-mpc-meeting-11589804086827.html

Non-strategic-sector PSEs to be privatized

https://www.livemint.com/news/india/non-strategic-sector-pses-to-be-privatized-11589743303798.html

Borrowers avoid fresh debt despite Centre’s push for credit flow

https://www.livemint.com/industry/banking/borrowers-avoid-fresh-debt-despite-centre-s-push-for-credit-flow-11589735432623.html

Retail loans may go bad, but won’t hurt banks much

https://www.livemint.com/industry/banking/retail-loans-may-go-bad-but-won-t-hurt-banks-much-11589733979332.html

Flight to safety may benefit banks, insurers

https://www.livemint.com/industry/banking/flight-to-safety-may-benefit-banks-insurers-11589536272586.html

External Sector

Why India Won't Be Able to Compete With China in the Post-COVID-19 World

https://thewire.in/political-economy/can-india-compete-with-china-in-the-post-covid-19-world

Coronavirus lockdown: Foreign investors pulled out more than $16 billion from India, says report

https://scroll.in/latest/962434/coronavirus-lockdown-foreign-investors-pulled-out-more-than-16-billion-from-india-says-report

‘Back to square one:’ Saudi Arabia’s double crisis hits home

https://www.livemint.com/news/world/-back-to-square-one-saudi-arabia-s-double-crisis-hits-home-11590086432461.html

China’s has $1.4 trillion plan to overtake the US in technologies

https://www.livemint.com/news/world/china-s-has-1-4-trillion-plan-to-overtake-the-us-in-technologies-11590054128569.html

China scraps GDP target, hikes defence spending
https://www.thehindu.com/news/international/china-scraps-gdp-target-hikes-defence-spending/article31652992.ece

Agriculture

How India Can Improve Its Food Security After the Pandemic Passes

https://thewire.in/agriculture/how-india-can-improve-its-food-security-after-the-pandemic-passes

Will Indian Agriculture Come out Relatively Unscathed in FY'21?

https://thewire.in/agriculture/will-indian-agriculture-come-out-relatively-unscathed-in-fy21

Sitharaman Announces Rs 40k Crore Boost to MGNREGA, Hike in State Borrowing Limits

https://thewire.in/economy/coronavirus-nirmala-sitharaman-fifth-tranche-mgnrega-state-borrowing-limit

Centre’s rural job spending push a work in progress

https://www.livemint.com/news/india/centre-s-rural-job-spending-push-a-work-in-progress-11589816995543.html

Lenders look to pivot to tractor financing to beat slowdown in the auto sector

https://www.livemint.com/industry/agriculture/lenders-look-to-pivot-to-tractor-financing-to-beat-slowdown-in-the-auto-sector-11589906281355.html

Fact Check: How Many MGNREGA Wage Arrears Did the Government Really Clear?

https://thewire.in/labour/mgnrega-wage-arrears

Centre Opts for Long-Term Agricultural Reforms, Leaving Farmers ‘Atmanirbhar’ in Crisis

https://thewire.in/agriculture/agriculture-economic-package-lockdown

 

Columns by Joseph Stiglitz and Paul Krugman

How Many Will Die for the Dow?: In a pandemic, Trump is reverting to type

https://www.nytimes.com/2020/05/21/opinion/trump-coronavirus-dow.html

We Should Help Workers, Not Kill Them: Unemployment benefits: an unheralded success story.

https://www.nytimes.com/2020/05/18/opinion/coronavirus-unemployment.html