'The answer for a quicker boost to growth is simple -- run a much larger deficit, use the resulting public resources to ensure adequate price support for agriculture, subsidise wage costs of MSMEs and accelerate public sector construction-intensive activities,' advises Nitin Desai.
India said its economy grew 7.3 percent in the October-December quarter.
Several critics including some rating agencies have doubted prospects of meeting this ambitious fiscal deficit target.
'During the lockdown if you terminate your employee, then you will face action under the NDMA.' 'This will be the first time something like this will happen in the history of India.'
India's macroeconomic situation is improving fast and the country's GDP growth will turn positive in the third and fourth quarters of the current financial year, eminent economist Ashima Goyal said on Sunday. Goyal in an interview to PTI said the management of the COVID-19 pandemic and gradual unlocks announced by the government have helped in avoiding multiple COVID-19 peaks. The growth estimates by different agencies are being continuously revised, she said.
While players in the financial ecosystem are opening up to the idea of receivables funding for the sector, this market needs a regulator, which a Parliament panel feels only RBI can provide.
Welcomes measures include a road map for fiscal consolidation of 3% of GDP by fiscal 2016-17, GST roadmap by the end of the year.
It was 55.3 per cent for the same period last year, and data shows the fiscal deficit for April-May was kept in reasonable check in spite of heavy frontloading of expenditure.
The IS curve is a measure of the sensitivity between GDP and prevailing interest rates.
Top gainers include Yes Bank, HUL, Vedanta, NTPC, Bharti Airtel, Adani Ports, PowerGrid and Tata Motors, rising up to 5 per cent.
India will have to devise policies to ensure overall growth in FY16.
The actual expenditure will only be marginally higher and hence, the multiplier effect will be muted.
The higher salaries and pension outgo will be equivalent to about one per cent of the GDP.
India needs to work on economic parameters to outpace China.
India's human development indicators show that deprivation extends well beyond the 22 per cent of population who live below the official poverty line.
This is the fifth straight cut in rates by the Reserve Bank of India in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.
'We have lived through 10% plus inflation in India and we are aware of the economic pitfall.' 'With the RBI now having formally adopted an inflation target range, they cannot turn a blind eye to the impending risks.'
Defence experts want defence expenditure to be at 3% of GDP, which they consider minimum to counter the two-front threat from China and Pakistan, internal insurgencies, and dominating a 7,500 km coastline and the Indian Ocean beyond. What Arun Jaitley has given India this Budget is 2.16% of GDP, observes Ajai Shukla.
Congress president Sonia Gandhi has convened a meeting of the party's strategy group on September 8, the sources said. Opposition leaders are keen that various like-minded parties should work closely with each other to take on the government in Parliament.
Gold purchases have risen after the Reserve Bank of India (RBI) and the government lifted the restrictions imposed on imports in 2013.
'You can't take money from Shaktikanta Das (the RBI governor) and give it to Nirmala Sitharaman (the Union finance minister). She will blow it away on Modi.'
The market price action seems to point in this direction. Let's hope we finally break out. It is about time! asserts Akash Prakash.
Of the six-member rate-setting monetary policy committee, five members voted for a 25 bps cut while one by 40 bps, the RBI said.
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The country has enough forex reserves to meet the demand.
The Reserve Bank of India (RBI) is precariously balancing two opposing objectives - maintaining easy financial condition in the domestic market, while ensuring external stability - and economists have started taking note. They say India is going through the classic trilemma of the 'Impossible Trinity'. The RBI cannot have an independent monetary policy (setting domestic interest rates) in an environment of an open capital account and flexible exchange rates. What is even more complicated for the central bank now is that financial market stability overlays all the other three objectives.
'Once the lockdown is lifted, we will need the mother of all fiscal and monetary policy support to sustain the economy,' advises Akash Prakash.
'One way of doing this could be offering credit guarantee to the banks, say 10 per cent, for fresh loans given to micro, small and medium enterprises,' observes Tamal Bandyopadhyay.
After tabling the Survey, Jaitley told reporters that fiscal deficit for the current year will be 4.5 per cent which needs to go down further in the next two years.
Indian economy is likely to expand in the range of 5.4 to 5.9 per cent this fiscal, as per government estimates.
The National Council of Applied Economic Research (NCAER) on Thursday lowered the GDP projection for the current fiscal to 4.7-4.9 per cent due to exchange rate depreciation.
Moody's on Monday slashed India's growth forecast for 2020 to 5.4 per cent from 6.6 per cent projected earlier, on slower than expected economic recovery. In its update on Global Macro Outlook, Moody's Investors Service said India's economy has decelerated rapidly over the last 2 years and economic recovery is likely to be 'shallow'.
Real GDP grew by a respectable 7.8 per cent in the first half of FY'09, which was lower than its expectations but, it was nevertheless in line with its view that the economy was growing at a healthy pace and that fears of a slowdown were misplaced, CMIE said. The agricultural sector grew by 2.7 per cent during the quarter ended September 2008, lower than CMIE's expectations.
Top gainers in the Sensex pack included Bharti Airtel, Tata Motors, IndusInd Bank, Kotak Bank, Hero MotoCorp, Asian Paints and PowerGrid, which rose up to 2.53 per cent.
Economists have cautioned that any deferment of the government's fiscal goals would prove counter-productive and raise the interest payment burden.
India's sovereign credit ratings do not reflect the economy's fundamentals, the Economic Survey said on Friday and nudged the global agencies to become more transparent and less subjective in their ratings. The Economic Survey 2020-21, tabled in Parliament, said that sovereign credit ratings methodology must be amended to reflect economies' ability and willingness to pay their debt obligations, and suggested that developing economies must come together to address this bias and subjectivity inherent in sovereign credit ratings methodology. "Never in the history of sovereign credit ratings has the fifth largest economy in the world been rated as the lowest rung of the investment-grade (BBB-/Baa3). While sovereign credit ratings do not reflect the Indian economy's fundamentals, noisy, opaque and biased credit ratings damage FPI flows," the survey said.
It pointed out that farm loan waivers, combined with a potential stimulus which the government is mulling now, can result in a 1 percentage point slippage in fiscal deficit
There is a relation between pollution and climate change, the environment minister said, adding that 40 per cent of India's total power capacity will come from renewable sources before 2030.
'India is nowhere near the peak of the infection given its large population of 1.3 billion'
RBI Governor Rajan on Wednesday said significant progress made in curbing current account deficit.
Only Rs 10,720 crore of the junked currency notes did not return to the banking system, rest 99.9 per cent was deposited raising question mark over the government's effort of curbing black money through the demonetisation.
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