Weekly Updates on the Indian Economy
(13/06/2020 – 19/06/2020)
- National Accounts and State of the Economy
- WPI inflation falls 3.21% in May, but food prices rise
http://timesofindia.indiatimes.com/articleshow/76381737.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- Opinion | Innovation, investment in human capital key to Indian recovery
https://www.livemint.com/opinion/online-views/opinion-innovation-investment-in-human-capital-key-to-indian-recovery-11592033293303.html
- Beyond alliteration: The PM's knack for wordplay, and economic realities
https://www.business-standard.com/article/opinion/beyond-alliteration-the-pm-s-knack-for-acronyms-and-economic-realities-120061201183_1.html
- Data deficiency
https://www.business-standard.com/article/opinion/data-deficiency-120061501745_1.html
- After over 4 years, wholesale prices in deflationary zone
http://timesofindia.indiatimes.com/articleshow/76396240.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- Unemployment rate falls sharply in June as people return to work
https://www.business-standard.com/article/opinion/expect-a-recovery-in-june-120061500810_1.html
- PM sees green shoots in the economy
https://www.thehindubusinessline.com/economy/pm-sees-green-shoots-in-the-economy/article31843703.ece
- Covid-positive, India Inc posts anaemic numbers
https://www.thehindubusinessline.com/portfolio/covid-positive-india-inc-posts-anaemic-numbers/article31827889.ece
- How can India soften the blow from remittance dip?
https://www.thehindubusinessline.com/opinion/how-can-india-soften-the-blow-from-remittance-dip/article31841749.ece
- Lockdown is pushing up India’s poverty levels
https://www.thehindubusinessline.com/opinion/lockdown-is-pushing-up-indias-poverty-levels/article31827305.ece
- Opinion | The social cost of covid-19: surge in the new poor
https://www.livemint.com/opinion/columns/opinion-the-social-cost-of-covid-19-surge-in-the-new-poor-11592152805990.html
- Survey finds 71% Indians worried about household income; 60% optimistic about the future
https://www.thehindu.com/news/national/survey-finds-71-indians-worried-about-household-income-60-optimistic-about-the-future/article31848666.ece
- Fitch Ratings revises India’s outlook to negative from stable
https://www.thehindu.com/business/Economy/fitch-ratings-revises-indias-outlook-to-negative-from-stable/article31857322.ece
- Narendra Modi says India returning to normal business activity; consumption, demand rising
https://www.thehindu.com/business/Economy/narendra-modi-says-india-returning-to-normal-business-activity-consumption-demand-rising/article31858498.ece
- Opinion | A fiscal boost could act like a deflation vaccine
https://www.livemint.com/opinion/online-views/a-fiscal-boost-could-act-like-a-deflation-vaccine-11592326909601.html
- Indian economy to contract by 4% in 2020-21, forecasts ADB
https://www.thehindu.com/business/Economy/indian-economy-to-contract-by-4-in-2020-21-forecasts-adb/article31863511.ece
- How India can strengthen its social security code to include the 422 million workers left behind
https://scroll.in/article/964108/how-india-can-strengthen-its-social-security-code-to-include-the-422-million-workers-left-behind
- Bihar, Rajasthan among states with steep rise in unemployment in 2018-19, youth hardest hit
https://theprint.in/economy/bihar-rajasthan-among-states-with-steep-rise-in-unemployment-in-2018-19-youth-hardest-hit/442713/
- Five charts that show how bad things are for Indian consumers
https://theprint.in/economy/five-charts-that-show-how-bad-things-are-for-indian-consumers/443013/
- Global economy is set for a V-shape recovery, Morgan Stanley economists say
https://theprint.in/economy/global-economy-is-set-for-a-v-shape-recovery-morgan-stanley-economists-say/441694/
- Government Has Created an Archive of Distress, a Museum of Misery For Migrant Workers
https://thewire.in/rights/migrant-workers-covid-19-lockdown-crisis-swan-report
- Lockdown Hit Migrant Workers' Savings, Forced Many to Take Loans: Gurugram Survey
https://thewire.in/rights/lockdown-migrant-workers-savings-loans-gurugram-survey
- Revising Minimum Wage Levels Could Slash Inequality, Help Millions
https://thewire.in/labour/minimum-wages-reform-inequality
- PM to Launch Rs 50,000-Cr Job Guarantee Scheme for Migrant Workers
https://thewire.in/labour/rs-50000-cr-job-guarantee-scheme-for-migrant-workers
- Opinion | Humane social choices are also the wisest ones for our economy
https://www.livemint.com/opinion/columns/humane-social-choices-are-also-the-wisest-ones-for-our-economy-11592413283746.html
- Opinion | Demand stimulation, supply constraints and recession risks
https://www.livemint.com/opinion/online-views/demand-stimulation-supply-constraints-and-recession-risks-11592494997161.html
- Petrol, diesel prices hiked again, 13th straight day of increase
https://www.thehindubusinessline.com/economy/macro-economy/petrol-diesel-prices-hiked-again-13th-straight-day-of-increase/article31866366.ece
- Public Finance
- Pandemic could erase more global wealth than financial crisis
https://theprint.in/ilanomics/this-recession-is-different-india-can-bounce-back-much-faster-than-in-the-past/439612/
- Social sector funding hit by economy woes
http://timesofindia.indiatimes.com/articleshow/76395542.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- Government needs to chart out fresh glide path to bring down fiscal deficit: RBI bullettin
http://timesofindia.indiatimes.com/articleshow/76392246.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- Govt’s fiscal stance pushing economy into further decline
https://www.thehindubusinessline.com/opinion/columns/c-p-chandrasekhar/govts-fiscal-stance-pushing-economy-into-further-decline/article31834769.ece
- Recovering from the Covid epidemic
https://www.business-standard.com/article/opinion/recovering-from-the-covid-epidemic-120061501753_1.html
- ‘₹20-lakh crore stimulus package not final because Covid has not ended’
https://www.thehindubusinessline.com/money-and-banking/20-lakh-crore-stimulus-package-not-final-because-covid-has-not-ended/article31844101.ece
- Data | Govt. keeps increasing fuel prices to shore up revenue, will it work?
https://www.thehindu.com/data/data-govt-keeps-increasing-fuel-prices-to-shore-up-revenue-will-it-work/article31850616.ece
- Opinion | The case for a second budget and switch to a new fiscal year
https://www.livemint.com/opinion/columns/the-case-for-a-second-budget-and-switch-to-a-new-fiscal-year-11592325537991.html
- FinMin says ‘no’ to fresh cash expenditure for first Supplementary Demands for Grants
https://www.thehindubusinessline.com/economy/finmin-says-no-to-fresh-cash-expenditure-for-first-supplementary-demands-for-grants/article31863052.ece
- India's Covid-19 pandemic fiscal cost lowest among major nations: Report
https://www.business-standard.com/article/economic-revival/india-s-covid-19-pandemic-fiscal-cost-lowest-among-major-nations-report-120061900105_1.html
Taxation
- Govt. puts off decision on States’ GST dues till July
https://www.thehindu.com/todays-paper/govt-puts-off-decision-on-states-gst-dues-till-july/article31817624.ece
- Centre told to release GST dues to States: Isaac
https://www.thehindu.com/todays-paper/tp-national/tp-kerala/centre-told-to-release-gst-dues-to-states-isaac/article31817976.ece
- Covid-19 relief: GST Council eases compliance for small businesses
https://www.business-standard.com/article/economy-policy/covid-19-relief-gst-council-eases-compliance-for-small-businesses-120061201175_1.html
- GST balm: Delay in returns to attract lower late fee, interest
https://www.thehindubusinessline.com/economy/policy/no-late-fee-on-gst-returns-with-nil-liability-for-july-2017-january-2020-period/article31814068.ece
- Frozen, packaged, branded parota not eaten by poor; Govt justifies 18% GST
https://www.business-standard.com/article/economy-policy/frozen-packaged-branded-parota-not-consumed-by-poor-govt-defends-18-gst-120061300753_1.html
- GST on the hot plate again: Why a parotta is not a roti, a chapatti or a khakhra for that matter when it comes to economy
https://www.firstpost.com/india/gst-on-the-hot-plate-again-why-a-parotta-is-not-a-roti-a-chapatti-or-a-khakhra-for-that-matter-when-it-comes-to-economy-8485231.html
- Central GST Intelligence detects ₹225-cr. tax evasion in M.P., arrests three accused
https://www.thehindu.com/news/national/central-gst-intelligence-detects-225-cr-tax-evasion-in-mp-arrests-three-accused/article31821635.ece
- TN, Punjab likely to get additional sum from accumulated IGST of 2017-18
https://www.thehindubusinessline.com/economy/tn-punjab-likely-to-get-additional-sum-from-accumulated-igst-of-2017-18/article31820213.ece
- SSI units appeal for reconsideration of GST/TDS rule
https://www.thehindubusinessline.com/news/national/ssi-units-appeal-for-reconsideration-of-gsttds-rule/article31826522.ece
- Behind the curve: On GST compensation to States
https://www.thehindu.com/opinion/editorial/behind-the-curve-the-hindu-editorial-on-gst-compensation-to-states/article31828367.ece
- Centre should give guarantee for GST Council borrowing: Kerala FM
https://www.business-standard.com/article/current-affairs/centre-should-give-guarantee-for-gst-council-borrowing-kerala-fm-120061400522_1.html
- Allow airlines to use GST credit on spares for economy-class operations, say experts
https://www.thehindubusinessline.com/economy/logistics/allow-airlines-to-use-gst-credit-on-spares-for-economy-class-operations-say-experts/article31835473.ece
- Implant to be taxed under VAT: Madras HC
https://www.thehindubusinessline.com/news/implant-to-be-taxed-under-vat-madra-hc/article31835646.ece
- Officials push for hike in GST levies
https://timesofindia.indiatimes.com/business/india-business/officials-push-for-hike-in-gst-levies/articleshow/76395683.cms
- With fuel prices on fire, Centre faces a dilemma over ‘duty’
https://www.thehindubusinessline.com/news/fuelling-issue-can-the-centre-afford-to-reduce-excise-duty/article31844822.ece
- Government taxing people with fuel prices: Kapil Sibal
https://www.thehindu.com/news/national/government-taxing-people-with-fuel-prices-kapil-sibal/article31822780.ece
- Why is the govt so keen on retrospective tax amendments?
https://www.thehindubusinessline.com/opinion/why-is-the-govt-so-keen-on-retrospective-tax-amendments/article31841579.ece
- Transitional credit: Delhi HC reiterates stand on claims
https://www.thehindubusinessline.com/news/transitional-credit-delhi-hc-reiterates-stand-on-claims/article31844348.ece
- CBIC launches e-Office application
https://www.thehindubusinessline.com/economy/policy/cbic-launches-e-office-application/article31839579.ece
- Q1 advance tax mop-up falls 76% as Covid-19 pandemic bites economy
https://www.business-standard.com/article/economy-policy/q1-advance-tax-mop-up-falls-76-as-covid-19-pandemic-bites-economy-120061700056_1.html
- The GST compensation imbroglio: T M Thomas Isaac
https://www.newindianexpress.com/opinions/2020/jun/17/the-gst-compensation-imbroglio-2157560.html
- Goods purchased, sold overseas liable to GST in India: AAR
https://www.thehindu.com/business/Economy/goods-purchased-sold-overseas-liable-to-gst-in-india-aar/article31860703.ece
- Why There is Still More Tax Reform Work To be Done on the Mauritius Front
https://thewire.in/government/why-there-is-still-more-tax-reform-work-to-be-done-on-the-mauritius-front
- Industry, Manufacturing, Services and Technology
- Industrial output goes missing in April as IIP sees record fall of 55.5%
https://www.business-standard.com/article/economy-policy/industrial-output-goes-missing-in-april-as-iip-sees-record-fall-of-55-5-120061201189_1.html
- Industrial commodities recover from recent lows as lockdown eases
https://www.business-standard.com/article/markets/industrial-commodities-recover-from-recent-lows-as-lockdown-eases-120061201283_1.html
- Semiconductor assembly majors plan to set up manufacturing units in India
https://www.business-standard.com/article/companies/semiconductor-assembly-majors-plan-to-set-up-manufacturing-units-in-india-120061300035_1.html
- FMCG players with higher dependence on one or 2 categories more vulnerable
https://www.business-standard.com/article/markets/fmcg-players-with-higher-dependence-on-one-or-2-categories-more-vulnerable-120061400633_1.html
- How supply chain shocks can derail green shoots of recovery
https://www.livemint.com/industry/manufacturing/how-supply-chain-shocks-can-derail-green-shoots-of-recovery-11592134179917.html
- After PM Modi intervenes, traders say Delhi markets to remain open
https://www.business-standard.com/article/current-affairs/after-pm-modi-intervenes-traders-say-delhi-markets-to-remain-open-120061400566_1.html
- ‘GDP contraction would endanger MSMEs’
https://www.thehindu.com/todays-paper/tp-business/gdp-contraction-would-endanger-msmes/article31837565.ece
- MSMEs facing existential crisis due to Covid: Crisil
http://timesofindia.indiatimes.com/articleshow/76394602.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- MFIs could lose Rs 1,500 cr on foregoing moratorium interest on interest
https://www.business-standard.com/article/finance/mfis-could-lose-rs-1-500-cr-on-foregoing-moratorium-interest-on-interest-120061300750_1.html
- Public procurement can lift manufacturing
https://www.thehindubusinessline.com/opinion/public-procurement-can-lift-manufacturing/article31827147.ece
- Employment generation a challenge but not unachievable: Nitin Gadkari
https://www.thehindubusinessline.com/economy/employment-generation-a-challenge-but-not-unachievable-nitin-gadkari/article31827351.ece
- PSBs disburse Rs 16,031 cr loan to MSMEs under emergency credit scheme
https://www.business-standard.com/article/finance/psbs-disburse-rs-16-031-crore-loan-to-msmes-under-emergency-credit-scheme-120061601007_1.html
- Opinion | A better way to rescue MSMEs from the tyranny of thresholds
https://www.livemint.com/opinion/columns/a-better-way-to-rescue-msmes-from-the-tyranny-of-thresholds-11592237020979.html
- MSMEs, have we got your back?
https://www.business-standard.com/article/opinion/msmes-have-we-got-your-back-120061800021_1.html
- How to strengthen India’s small businesses in a post-lockdown economy
https://scroll.in/article/964914/how-to-strengthen-indias-small-businesses-in-a-post-lockdown-economy
- RIL net debt free before schedule; to list retail, telecom biz within 5 yrs
https://www.business-standard.com/article/companies/ril-net-debt-free-before-schedule-to-list-retail-telecom-biz-within-5-yrs-120061900238_1.html
- PM kick-starts virtual auction of 41 coal blocks
https://www.thehindu.com/business/Industry/pm-kick-starts-virtual-auction-of-41-coal-blocks/article31863541.ece
- Banking and Monetary policy
- RBI sets up panel to review corporate structure of private sector banks
https://www.business-standard.com/article/finance/rbi-sets-up-panel-to-review-corporate-structure-of-private-sector-banks-120061300063_1.html
- Privatisation of public sector banks unlikely this fiscal: Report
https://www.livemint.com/industry/banking/privatisation-of-public-sector-banks-unlikely-this-fiscal-report-11592114077474.html
- In poor health already, banks come under grip of Covid-19 pandemic
https://www.business-standard.com/article/economy-policy/already-stuck-with-huge-liquidity-surplus-banks-come-under-covid-19-s-grip-120061400674_1.html
- Don't decriminalise, fix financial limits for cheque bounce: Bank union
https://www.business-standard.com/article/finance/don-t-decriminalise-fix-financial-limits-for-cheque-bounce-bank-union-120061500394_1.html
- After MSMEs, let's focus on large stressed sectors
https://www.business-standard.com/article/opinion/after-msmes-let-s-focus-on-large-stressed-sectors-120061400842_1.html
- In poor health already, banks come under grip of Covid-19 pandemic
https://www.business-standard.com/article/economy-policy/already-stuck-with-huge-liquidity-surplus-banks-come-under-covid-19-s-grip-120061400674_1.html
- ‘Assessing credit risk in uncertain environment is a big challenge’
https://www.thehindubusinessline.com/money-and-banking/assessing-credit-risk-in-uncertain-environment-is-a-big-challenge/article31834507.ece
- Banking system is in a Catch-22 situation: Indian Bank's Padmaja Chunduru
https://www.business-standard.com/article/finance/banking-system-is-in-a-catch-22-situation-indian-bank-s-padmaja-chunduru-120061600067_1.html
- Rupee might head southwards
https://www.thehindubusinessline.com/portfolio/technical-analysis/rupee-might-head-southwards/article31848406.ece
- Plenty of liquidity available in the system: SBI chief Rajnish Kumar
https://www.livemint.com/industry/banking/plenty-of-liquidity-available-in-the-system-sbi-chief-rajnish-kumar-11592486894824.html
- Coercive loan recovery tactics under RBI lens
https://www.livemint.com/industry/banking/coercive-loan-recovery-tactics-under-rbi-lens-11592331205334.html
- Resolve Franklin debt fund crisis fast
https://www.thehindubusinessline.com/opinion/resolve-franklin-debt-fund-crisis-fast/article31844607.ece
- Opinion | Debt is now an unwanted burden across most of India’s economy
https://www.livemint.com/opinion/columns/debt-is-now-an-unwanted-burden-across-most-of-india-s-economy-11592323769843.html
- Fears about largescale retail loan defaults in India overblown, Macquarie analysts say
https://theprint.in/economy/fears-about-largescale-retail-loan-defaults-in-india-overblown-macquarie-analysts-say/444177/
- RBI proposes new rules for housing finance companies
https://www.livemint.com/industry/banking/rbi-proposes-new-rules-for-housing-finance-companies-11592403986803.html
- RBI committee on ATMs mooted charging customers for withdrawals above ₹5,000
https://www.livemint.com/industry/banking/rbi-committee-on-atms-mooted-charging-customers-for-withdrawals-above-rs-5-000-11592539525489.html
- A radical overhaul of bank governance
https://www.business-standard.com/article/opinion/a-radical-overhaul-of-bank-governance-120061802051_1.html
- External Sector
- India's services exports dip 8.92% to $16.45 billion in April
http://timesofindia.indiatimes.com/articleshow/76393273.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- India 9th largest recipient of FDI in 2019, will continue to attract investments: UN
http://timesofindia.indiatimes.com/articleshow/76399844.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- India’s curbs on import of pulses: Australia, EU, US raise concerns at WTO
https://www.thehindubusinessline.com/economy/agri-business/indias-curbs-on-import-of-pulses-australia-eu-us-raise-concerns-at-wto/article31812868.ece
- As Centre imposes tyre import curbs, natural rubber sector seeks similar step
https://www.thehindubusinessline.com/news/as-centre-imposes-tyre-import-curbs-natural-rubber-sector-seeks-similar-step/article31831306.ece
- Pesticide exports exempted from proposed ban
https://www.thehindubusinessline.com/economy/pesticide-exports-exempted-from-proposed-ban/article31835429.ece
- Unravelling the surge in India’s forex reserves
https://www.thehindubusinessline.com/opinion/unravelling-the-surge-in-indias-forex-reserves/article31840983.ece
- India May exports fall 36.47% to $19.05 bn, trade deficit down to $3.15 bn
https://www.business-standard.com/article/economy-policy/india-may-exports-fall-36-47-to-19-05-bn-trade-deficit-down-to-3-15-bn-120061501153_1.html
- U.S. mulling over restoring GSP status for India: Lighthizer
https://www.thehindu.com/news/national/us-mulling-over-restoring-gsp-status-for-india-lighthizer/article31866026.ece
- Opinion | Our economic interests must shape trade policy
https://www.livemint.com/opinion/online-views/our-economic-interests-must-shape-trade-policy-11592498394077.html
- India Plans Higher Trade Barriers, Raised Import Duties on 300 Foreign Products: Report
https://thewire.in/business/modi-atmanirbhar-import-duties-foreign-products
- Agriculture and Rural Economy
- Yoked together, migrant workers and farmers are back in Punjab’s fields
https://www.thehindu.com/todays-paper/tp-national/yoked-together-migrant-workers-and-farmers-are-back-in-punjabs-fields/article31817618.ece
- Bharat to India Inc's rescue: Green shoots in villages lead demand recharge
https://www.business-standard.com/article/economic-revival/green-shoots-in-rural-india-lead-demand-recharge-120061200557_1.html
- Farmers producers company see success in retail outlets
https://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/farmers-producers-company-see-success-in-retail-outlets/article31838199.ece
- Why farm subsidies in India are far lower than in rich countries
https://www.thehindubusinessline.com/economy/agri-business/why-farm-subsidies-in-india-are-far-lower-than-in-rich-countries/article31839911.ece
- Amid Covid gloom, farm sector blooms for the most part
https://www.thehindubusinessline.com/economy/agri-business/amid-covid-gloom-farm-sector-blooms-for-the-most-part/article31848968.ece
- Person-days of work under MGNREGA amid Covid-19 crisis: A reality check
https://www.business-standard.com/article/economy-policy/person-days-of-work-provided-in-lockdown-under-mgnrega-a-reality-check-120061601928_1.html
- Punjab paddy farmers say labour costs have doubled as local workers demand higher wages
https://theprint.in/economy/punjab-paddy-farmers-say-labour-costs-have-doubled-as-local-workers-demand-higher-wages/441318/
- Opinion | Universalize food entitlements to avert hunger and aid growth
https://www.livemint.com/opinion/columns/universalize-food-entitlements-to-avert-hunger-and-aid-growth-11592497017610.html
- Will India's Contract Farming Ordinance Be a Corporate Lifeline for Agriculture?
https://thewire.in/agriculture/india-contract-farming-ordinance-corporate-lifeline
- India's rice production could hit record this year as farmers expand area
https://www.livemint.com/industry/agriculture/india-s-rice-production-could-hit-record-this-year-as-farmers-expand-area-11592475432874.html
- Fertiliser subsidy dues likely to cross a record ₹60,000 crore in FY21
https://www.thehindubusinessline.com/economy/agri-business/fertiliser-subsidy-dues-likely-to-cross-a-record-60000-crore-in-fy21/article31859312.ece
- Columns
- OBIT: A VAIDYANATHAN (1932–2020): Of cloves, census and commitment
https://www.thehindubusinessline.com/news/variety/of-cloves-census-and-commitment/article31811390.ece
- Market Madness in the Pandemic: Why are investors rushing to buy junk? - Paul Krugman
https://www.nytimes.com/2020/06/15/opinion/coronavirus-stock-market.html
- Commentary: America failing the marshmallow test - Paul Krugman
https://www.thetelegraph.com/opinion/article/Commentary-America-failing-the-marshmallow-test-15342778.php
- Articles
- Covid-19 has squeezed migrants’ remittances to their families
https://www.economist.com/finance-and-economics/2020/06/15/covid-19-has-squeezed-migrants-remittances-to-their-families
- To understand the new wave of small investors, look to China
https://www.economist.com/finance-and-economics/2020/06/20/to-understand-the-new-wave-of-small-investors-look-to-china
- China’s poverty line is not as stingy as commentators think
https://www.economist.com/finance-and-economics/2020/06/20/chinas-poverty-line-is-not-as-stingy-as-commentators-think
- Special Article: Impact of the Negative Interest Rate Policy on Emerging Asian Markets
https://www.epw.in/journal/2020/24/special-articles/impact-negative-interest-rate-policy-emerging.html
- Commentary: Economic Implication of a Novel Disease Outbreak: Understanding Its Genesis
https://www.epw.in/journal/2020/24/commentary/economic-implication-novel-disease-outbreak.html
- Commentary:Challenges in the Midst of the COVID-19 Pandemic – Pinarayi Vijayan (chiefminister@kerala.gov.in) is the chief minister of Kerala
https://www.epw.in/journal/2020/24/commentary/challenges-midst-covid-19-pandemic.html
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Journals: Economic and Political Weekly, The Economist