Weekly Updates on Indian Economy

(25^th April 2020 to 01^st 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