'I think public awareness should be created and laws should not be made only for the sake of politics'
There are many collateral advantages of taking the tough decision.
A 6-7 million tonnes shortfall in rice production due to a fall in paddy sowing area is likely to keep rice prices at elevated levels, adding to the inflationary pressure that the slowing economy is already grappling with. Elevated food prices, including that of cereals, had led to retail inflation reversing a three-month declining trend, to touch 7 per cent in August. Similarly, the wholesale price inflation, which declined to 11-month low, also showed price pressures from cereals resulting from wheat output being impacted by severe heat waves in some parts of the country.
Bimal Jalan, has recommended to the government that it cut fiscal deficit to 3.6 per cent of the GDP during 2015-16.
To help revive the economy battered by COVID-19, Finance Minister Nirmala Sitharaman on Monday announced a slew of measures, including Rs 1.1 lakh crore credit guarantee scheme for improving health infrastructure, and enhancing the limit under the ECLGS by 50 per cent to Rs 4.5 lakh crore for the MSME sector facing liquidity crunch. Sharing the details of stimulus package, the finance minister said this comprises eight relief measures and other eight measures to support the economic growth. She announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors, including health sector, which includes guarantee cover for expansion or for new projects. Besides, she said, additional Rs 1.5 lakh crore limit enhancement done for Emergency Credit Line Guarantee Scheme (ECLGS) scheme.
Swiss brokerage Credit Suisse expects the economy to continue to show positive surprises and record up to 9 per cent growth in the next fiscal. For the current financial year too, the brokerage anticipates growth to be higher than the consensus forecast of 8.4-9.5 per cent, and printing in at around 10.5 per cent. As a policy, Credit Suisse does not provide absolute growth numbers in its forecast.
The Kelkar Committee has recommended sharp reduction in subsidies on petroleum, food and fertiliser, which the government said was contrary to its policy of protecting the poor.
'It is time to think up a policy of incentivising farmers in the states around Delhi.' 'Let's say a farmer is given an incentive for not burning his crop stubble and instead handing over the task of incinerating the crop stubble to a State-run-or-funded community initiative.' 'The incentive can take the form of, say, fertilisers, or even direct cash transfers,' recommends Somasekhar Sundaresan.
The people will view it from their viewpoint, their immediate interest, historical experiences, their insecurities, he said.
These core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production.
There are conflicting signs on India's investment cycle.
India's negotiating posture at the multilateral negotiations should be aligned with a significantly transformed development strategy domestically.' 'The positions the country takes at the negotiations will then carry credibility, says Shyam Saran, former foreign secretary and India's chief negotiator on Climate Change 2007-2010.
As the Ukraine conflict impacts the global GDP, India is projected to grow by 6.4 per cent in 2022, slower than the last year's 8.8 per cent but still the fastest-growing major economy, with higher inflationary pressures and uneven recovery of the labour market curbing private consumption and investment, according to a UN report. The UN Department of Economic and Social Affairs said in its World Economic Situation and Prospects (WESP) report released on Wednesday that the war in Ukraine has upended the fragile economic recovery from the pandemic, triggering a devastating humanitarian crisis in Europe, increasing food and commodity prices and globally exacerbating inflationary pressures. The global economy is now projected to grow by only 3.1 per cent in 2022, down from the 4.0 per cent growth forecast released in January 2022.
If the central banks act harshly now, the markets will crash and then rally. If they are hesitant, the pain will be prolonged, predicts Debashis Basu.
'Those who are talking of adopting the Narasimha Rao-Manmohan Singh policy must understand now that what was a reform then is no longer a reform now,' argues Sukumar Mukhopadhyay who was associated with the 1991 economic reforms.
'Punjab elections are there and so are UP elections. They must have done some calculations (before announcing the repeal).'
While she primed up spending on infrastructure to create jobs and boost economic activity, Sitharaman did not tinker with income tax slabs or tax rates. Her Budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and tax crypto assets.
The S&P BSE Small-cap index has recovered 26 per cent as compared to a 23 per cent rise in the S&P BSE Sensex.
Private participation remains lacklustre.
Barely a week before the Union Budget for 2010-11, the United Progressive Alliance government on Thursday raised urea prices 10 percent.
The current slowdown has lasted for over 18 months and is the longest incident of sluggishness since 2006.
Bharatiya Janata Party on Monday said it will demand a division of votes on the cut motions to be moved in the Lok Sabha on Tuesday against increase in prices of petrol, diesel and fertiliser.
Speaking at the RSS's annual Vijayadashami rally in Nagpur which was broadcast online and attended 50 swayamsevaks (volunteers) due to the COVID-19 guidelines, Bhagwat said when the Sangh says Hindustan is 'Hindu Rashtra', it does not have any political or power-centered concept in its mind.
IT, FMCG and manufacturing sectors are less attractive to foreign portfolio investors
Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
No government can 'ignore inclusiveness in a democracy', Montek Singh Ahluwalia tells Anjuli Bhargava.
Reaching out to the youth of the Kashmir Valley, Prime Minister Narendra Modi on Sunday spelled out initiatives for peace and development, and assured they will not inherit the problems faced by their parents and grandparents.
The immediate need is to put more money in the hands of agriculture-based and rural households to improve their purchasing power, says S Mahendra Dev.
It is time for the three finance ministers of the 1990s to reveal the real hero, says T C A Srinavasa-Raghavan.
India invited fresh bids on Tuesday for a stake of 51 per cent in state-run Fertilisers and Chemicals Travancore Ltd.
Coal and steel were only two sectors that saw some growth.
IFFCO beat competition from among the 523 cooperatives from 30 counties that were surveyed for the agriculture and food industries sector.
Coal, refinery products, electricity and cement production registered a growth of 14.5 per cent, 8.1 per cent, 10.2 per cent and 11.3 per cent, respectively in November, as per the data released by the Commerce and Industry Ministry.
By any economic theory or doctrine, this is no Budget that supports economic recovery, whether through supporting aggregate demand, or through expansionary stimulus, declares Rathin Roy.
Reliance Industries Limited's chairman Mukesh Ambani last week told company shareholders that his firm will supply gas to ADAG plants as and when they are ready and it is subject to the allocation being made by the government.
'The Rajapaksas have been in active politics for decades and survived many challenges, but they seem to have misread this one.'
Government's direct cash transfer scheme is "anti-poor" as it would actually cut subsidies due to the high inflation rate and not cover the rising prices of foodgrains, the Communist Party of India-Marxist on Wednesday said opposing the move.
Bhupesh Baghel said about his father that he respected his father as a son, but as a chief minister, none of his mistakes that will disturb public order can be ignored.
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