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
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
Gulati Institute of Finance and Taxation