Weekly Updates on Indian Economy

(02^nd May 2020 to 08^th May 2020)

National Accounts and state of the economy

1. Indian economy to be in ‘deep freeze’
   https://economictimes.indiatimes.com/news/economy/indicators/moodys-investors-service-sees-indias-economic-growth-at-zero-in-fy21/articleshow/75619459.cms
2. The panchayati front
   https://indianexpress.com/article/opinion/columns/coronavirus-pandemic-panchayati-front-6395715/
3. Unemployment rate soars to 27.11 amid covid 19 pandemic
   https://indianexpress.com/article/business/unemployment-rate-soars-to-27-11-amid-covid-19-pandemic-cmie-6395714/
4. Pathways to a more resilient economy
   https://www.thehindu.com/opinion/lead/pathways-to-a-more-resilient-economy/article31512646.ece
5. Centre should allow States to devise their own economic strategies: Arvind Mayaram
   https://www.thehindu.com/business/Economy/centre-should-allow-states-to-devise-their-own-economic-strategies-arvind-mayaram/article31528117.ece
6. Centre must put economic growth first
   https://www.thehindubusinessline.com/opinion/editorial/centre-must-put-economic-growth-first/article31495145.ece
7. India's economic growth rate may contract 16-20% in Q1, says Icra
   https://www.business-standard.com/article/economy-policy/india-s-economic-growth-rate-may-contract-16-20-in-q1-says-icra-120050500089_1.html
8. Finance Ministry sees FY21 economic growth at 2-3% amid Covid-19 outbreak
   https://www.business-standard.com/article/economy-policy/covid-19-impact-finmin-internally-projects-fy21-gdp-growth-at-2-3-120050300813_1.html
9. COVID-19 Crisis: India's Unemployment Rate Soars to 27.11%, Says CMIE
   https://thewire.in/economy/india-unemployment-rate

https://scroll.in/latest/961126/covid-19-unemployment-rate-surged-to-27-1-amid-coronavirus-crisis-says-cmie

10. New FDI Norms in Time of COVID – Good Economics or Geopolitics?

https://thewire.in/economy/new-fdi-norms-in-time-of-covid-geopolitics-or-for-the-real-economy

11. Covid-19: Credit rating agency Moody’s says India’s growth will ‘hit zero’ in 2020-’21

https://scroll.in/latest/961381/covid-19-credit-rating-agency-moodys-says-indias-growth-will-hit-zero-in-2020-21

12. Nobel laureate Abhijit Banerjee recommends direct cash transfer to stimulate Covid-19 economy

https://scroll.in/video/961080/nobel-laureate-abhijit-banerjee-recommends-direct-cash-transfer-to-stimulate-covid-19-economy

13. Indian economy may contract 0.4 pc in FY21 on coronavirus pandemic, says two foreign brokerages

https://www.livemint.com/news/india/indian-economy-may-contract-0-4-pc-in-fy21-on-coronavirus-pandemic-says-two-foreign-brokerages-11588958117509.html

14. Indians concerned about health, economy: BCG

https://www.livemint.com/news/india/indians-concerned-about-health-economy-bcg-11588946841575.html

15. Raghuram Rajan says monetisation neither a game changer nor catastrophe

https://www.livemint.com/news/india/raghuram-rajan-says-monetisation-neither-a-game-changer-nor-catastrophe-11588932063418.html

16. The economy must be managed along with covid-19 for a prolonged period

https://www.livemint.com/news/india/the-economy-must-be-managed-along-with-covid-19-for-a-prolonged-period-11588790164307.html

17. Opinion | A worthy way to fund a big-bang stimulus

https://www.livemint.com/opinion/online-views/a-worthy-way-to-fund-a-big-bang-stimulus-11588787821578.html

18. Economic recovery could take one year for India Inc

https://www.livemint.com/news/india/economic-recovery-could-take-one-year-for-india-inc-11588529621133.html

19. Economic recovery may take more than a year: CII poll

https://www.livemint.com/news/india/economic-recovery-may-take-more-than-a-year-cii-poll-11588499267597.html

 

Public Finance

1. Relax FRBM Targets for states to fight covid-19
   https://www.financialexpress.com/opinion/relax-frbm-target-for-states-to-fight-covid-19/1951703/
2. Govt hikes borrowing limit by over 50% to Rs 12 trn as virus grips economy
   https://www.business-standard.com/article/economy-policy/govt-to-borrow-a-record-rs-12-trn-from-the-market-to-fight-covid-19-120050801523_1.html
3. As Poverty Spikes Due to Lockdown, A Separate Package for Urban Distress is Urgently Needed
   https://thewire.in/economy/lockdown-poverty-urban-distress-package
4. Micro enterprises best placed to help economy come out of COVID-19 crisis; eligible to get financial aid from credit institutions: Report
   https://www.firstpost.com/business/micro-enterprises-best-placed-to-help-economy-come-out-of-covid-19-crisis-eligible-to-get-financial-aid-from-credit-institutions-report-8343811.html
5. COVID-19: Double stress fund for stalled affordable housing projects to Rs 50,000 cr, says EY
   https://www.firstpost.com/business/covid-19-double-stress-fund-for-stalled-affordable-housing-projects-to-rs-50000-cr-says-ey-8331681.html
6. Government working on economic package for all sectors
   https://www.livemint.com/news/india/government-working-on-economic-package-for-all-sectors-11588848392432.html

 

 

Taxation

1. Tax relief likely on forced residency due to lockdown
   https://economictimes.indiatimes.com/news/economy/finance/tax-relief-likely-on-forced-residency-due-to-coronavirus-lockdown/primeshow/75614396.cms
2. Tax collection to decline further in May, states’ fiscal deficit may touch 4 % in FY21
   https://www.financialexpress.com/economy/tax-collections-to-decline-further-in-may-states-fiscal-deficit-may-touch-4-in-fy21-sushil-modi/1948234/
3. Govt extends last date for filing annual GST return for FY19 by 3 months till September
   https://www.firstpost.com/business/govt-extends-last-date-for-filing-annual-gst-return-for-fy19-by-3-months-till-september-8339231.html
4. Income Tax Department cautions people against phishing e-mails promising refund
   https://www.firstpost.com/business/income-tax-department-cautions-people-against-phishing-e-mails-promising-refund-8326791.html
5. Opinion | Our fiscal dose needs to be adequate for the task

https://www.livemint.com/opinion/online-views/our-fiscal-dose-needs-to-be-adequate-for-the-task-11588515184740.html

Industry, Manufacturing, Services and Technology

1. Investment and turnover to be MSME tag criteria
   https://www.financialexpress.com/industry/sme/new-msme-tag-to-rely-on-both-investment-and-turnover-bill-being-reworked/1951461/
2. A roadmap for manufacturing
   https://timesofindia.indiatimes.com/blogs/toi-edit-page/a-roadmap-for-manufacturing-these-five-steps-can-power-an-industrial-revival-in-the-aftermath-of-corona/
3. Why are MSMEs worst hit
   https://indianexpress.com/article/explained/coronavirus-india-lockdown-msme-sector-crisis-government-relief-package-6395731/
4. Longer Working Hours, Employee Productivity and the COVID-19 Economic Slump
   https://thewire.in/economy/covid-19-working-hours-economy
5. India's Manufacturing Sector Activity Hits Record Low in April: PMI
   https://thewire.in/economy/indias-manufacturing-sector-activity-hits-record-low-in-april-pmi
6. Covid-19: India’s service sector fell to historic low in April amid lockdown, shows survey
   https://scroll.in/latest/961179/covid-19-indias-service-sector-fell-to-historic-low-in-april-amid-lockdown-shows-survey
7. Coronavirus Lockdown: Industry body CII bats for immediate stimulus package of Rs 15 lakh cr
   https://www.firstpost.com/business/coronavirus-lockdown-industry-body-cii-bats-for-immediate-stimulus-package-of-rs-15-lakh-cr-8348661.html
8. Business plan contest to encourage startups, SMEs during coronavirus enforced lockdown
   https://www.firstpost.com/business/business-plan-contest-to-encourage-startups-smes-during-coronavirus-enforced-lockdown-8326661.html
9. Services sector activity sinks to the lowest ever amid coronavirus lockdown
   https://www.livemint.com/news/india/services-sector-activity-sinks-to-the-lowest-ever-amid-coronavirus-lockdown-11588793971436.html
10. India's economy needs the retail sector to grow
    https://www.livemint.com/opinion/online-views/india-s-economy-needs-the-retail-sector-to-grow-11588785884086.html
11. If Govt wants to revive revenues, they have to revive auto industry: Rajeev Chaba, MG Motor India
    https://www.livemint.com/industry/manufacturing/if-govt-wants-to-revive-revenues-they-have-to-revive-auto-industry-rajeev-chaba-mg-motor-india-11588864039373.html
12. Govt and Industry needs to change the way they interact : R C Bhargava
    https://www.livemint.com/news/india/govt-and-industry-needs-to-change-the-way-they-interact-r-c-bhargava-11588858607910.html
13. Pivot or Perish: Auto industry calls for GST cut and incentives to revive growth
    https://www.livemint.com/industry/manufacturing/auto-industry-calls-for-gst-cut-and-incentives-to-revive-growth-11588879384830.html
14. India manufacturing activity drops to lowest on record in April: PMI
    https://www.livemint.com/industry/manufacturing/india-manufacturing-pmi-drops-to-lowest-on-record-in-april-11588568641330.html
15. Auto industry may cut R&D spending, exit unprofitable segments due to coronavirus pandemic: Deloitte

https://www.livemint.com/industry/manufacturing/auto-industry-may-cut-r-d-spending-exit-unprofitable-segments-due-to-coronavirus-pandemic-deloitte-11588532485509.html

16. Govt picks 8 sectors for reforms to duck downgrade, attract firms exiting China

https://www.livemint.com/news/india/govt-identifies-8-sectors-for-reforms-to-escape-ratings-downgrade-11588906040128.html

Banking and Monetary Policy

1. Lenders may create a bad bank: SBI Chief
   https://www.financialexpress.com/industry/banking-finance/stressed-assets-lenders-may-create-bad-bank-says-sbi-chief/1951557/
2. RBI may tweak policy to push banks banks to lend more
   https://economictimes.indiatimes.com/markets/stocks/news/rbi-may-tweak-policy-to-push-banks-to-lend-more-park-less-funds/articleshow/75590450.cms
3. More Rise in Cash Circulation Between January and April Than Entire 2019: RBI
   https://thewire.in/economy/cash-circulation-rbi
4. RBI cancels licence of CKP Cooperative Bank, cites its ‘adverse, unsustainable’ financial position
   https://scroll.in/latest/960900/rbi-cancels-licence-of-ckp-cooperative-bank-cites-its-adverse-unsustainable-financial-position
5. Coronavirus Lockdown: PSBs have sanctioned loans worth Rs 42,000 cr to MSMEs, corporates so far
   https://www.firstpost.com/business/coronavirus-lockdown-psbs-have-sanctioned-loans-worth-rs-42000-cr-to-msmes-corporates-so-far-8348591.html
6. Public sector banks' NPAs likely to rise by 2-4%; may push govt to recapitalise via RBI reserves, bonds: Report
   https://www.firstpost.com/business/public-sector-banks-npas-likely-to-rise-by-2-4-may-push-govt-to-recapitalise-via-rbi-reserves-bonds-report-8333961.html
7. Coronavirus Outbreak: NBFCs ask RBI for one-time restructuring of all loans till March 2021
   https://www.firstpost.com/business/coronavirus-outbreak-nbfcs-ask-rbi-for-one-time-restructuring-of-all-loans-till-march-2021-8333501.html
8. Coronavirus Outbreak: RBI may extend bank loan moratorium by another 3 months to help people, industry impacted by lockdown
   https://www.firstpost.com/business/coronavirus-outbreak-rbi-may-extend-bank-loan-moratorium-by-another-3-months-to-help-people-industry-impacted-by-lockdown-8333291.html
9. RBI fixes the new 10-year G-sec rate at 5.79%
   https://www.livemint.com/industry/banking/rbi-fixes-the-new-10-year-g-sec-rate-at-5-79-11588957796695.html
10. Bankers to revive bad bank concept
    https://www.livemint.com/industry/banking/bankers-to-revive-bad-bank-concept-11588876753966.html
11. A new twist to the bankers’ dilemma
    https://www.livemint.com/industry/banking/a-new-twist-to-the-bankers-dilemma-11588876042749.html
12. Banks push credit lines even as borrowers remain unwilling citing uncertainty
    https://www.livemint.com/industry/banking/banks-push-credit-lines-even-as-borrowers-remain-unwilling-citing-uncertainty-11588858849655.html
13. Digital lenders struggle to cope with slowdown induced by virus

https://www.livemint.com/industry/banking/covid-19-digital-lenders-face-first-ever-slowdown-seek-new-normal-amid-crisis-11588674012855.html

Agriculture

1. States press the reform button when pandemic locks agriculture in
   https://www.livemint.com/industry/agriculture/states-press-the-reform-button-when-pandemic-locks-agriculture-in-11588876520485.html
2. 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
3. Govt doesn't have data on financial condition of farmers: Narendra Singh Tomar
   https://www.livemint.com/industry/agriculture/govt-doesn-t-have-data-on-financial-condition-of-farmers-narendra-singh-tomar-11583243941014.html

External Sector

1. Global economic outlook worsened since forecast in April, says IMF
   https://www.thehindubusinessline.com/economy/macro-economy/global-economic-outlook-worsened-since-forecast-in-april-says-imf/article31531435.ece
2. Coronavirus impact: Now 33.5 mn seek unemployment benefits in US
   https://www.business-standard.com/article/international/coronavirus-impact-now-33-5-mn-seek-unemployment-benefits-in-us-120050701701_1.html
3. How will trade tensions between US and China impact gold?

https://www.livemint.com/money/personal-finance/how-will-trade-tensions-between-us-and-china-impact-gold-11588753659498.html

4. India looks to lure over 1,000 US companies out of China

https://www.livemint.com/industry/manufacturing/india-looks-to-lure-over-1-000-us-companies-out-of-china-11588841527621.html

Columns by Joseph Stiglitz and Paul Krugman

1. World must combat looming debt meltdown in developing countries
   https://www.theguardian.com/business/2020/apr/07/world-must-combat-looming-debt-meltdown-in-developing-countries-covid-19
2. An Epidemic of Hardship and Hunger: Why won’t Republicans help Americans losing their jobs?
   https://www.nytimes.com/2020/05/07/opinion/coronavirus-republicans-jobs.html
3. Trump and His Infallible Advisers: Beware men who never admit having been wrong.
   https://www.nytimes.com/2020/05/04/opinion/trump-coronavirus.html