News Analysis India

Tag: Indian economy

  • Government ready to do everything required to revive economy: Finance Minister Nirmala Sitharaman

    By PTI

    NEW DELHI: Finance Minister Nirmala Sitharaman on Thursday assured India Inc that the government is ready to do everything required to revive and support economic growth.

    There are indicators which suggest that the economy is buoyant and recovery is taking place post lifting of COVID-19 restrictions by states, she said while addressing the CII Annual Meeting 2021.

    She further said foreign direct investment has seen a growth of 37 per cent so far this fiscal, while forex reserves increased to USD 620 billion as of July.

    The Narendra Modi government has shown commitment to reforms even during the pandemic, she said, adding last year the Centre announced farm laws and labour reforms, among others.

    She also exhorted the industry to come forward and invest in the economy.

  • Any subsequent Covid wave to be mild, impact of second wave muted: Finance ministry

    By Express News Service

    NEW DELHI:  The finance ministry has brushed aside the fears of next wave of pandemic and said that any subsequent waves will be mild in impact, if the country sustains the momentum of vaccination programme.

    “Having antibodies reduces the probability of acquiring serious illnesses, as is borne by studies. So, any subsequent waves are expected to be mild in their impact on hospitalisations and deaths. However, it is imperative that Covid-appropriate behaviour and due protocol is followed,” the monthly economic report released by the financial ministry said.

    The report added that the impact of the second wave is muted and the economy has started recovering, as suggested by various economic indicators. The finance ministry said the movement of high frequency indicators in July clearly point towards a broad-based economic revival. PMI Manufacturing sharply rebounded to expansionary zone in July emerging from the previous month’s contraction. GST collection also reclaimed its Rs 1 trillion plus territory in July signifying increased business and consumer activity. Rail freight in July hit a record 18.3% growth.

    The surge in economic activity in July was further corroborated by trends in Kharif sowing, fertilizer sales, power consumption, vehicle registrations, highway toll collections, e-way bills and digital transactions. Latest available data on growth of eight core industries, auto sales, tractor sales, port traffic, air passenger traffic also indicate improvement from the contraction induced by the second wave.

    “With the second wave abating in most  parts of the country and state governments lifting the restrictions in  phases, there are visible signs of economic rejuvenation since second half of May. This resonates with the expectation that the impact of the second wave will be muted,” the report said, adding the rebound in economic indicators and the muted impact of the second wave is corroborated by upward revision of RBI estimates for real GDP growth in Q1 of 2021-22 to 21.4% from its June estimate of 18.5%.

  • UP moves to second spot on GSDP list, surpasses Tamil Nadu, Gujarat

    Express News Service
    LUCKNOW: Amid the pandemic-driven economic slowdown, UP stood out in the crowd by becoming the second-largest state in the country locking Rs 19.48 lakh crore of Gross State Domestic Product (GSDP). It surpassed states such as Gujarat, Karnataka, and Tamil Nadu. 

    The finance department data shows that the state’s GSDP in 2020-2021 crossed the USD 268 billion mark making the state climbing three ranks to figure at number 2 position in 2020-21 from number 5 in 2019-2020.

    With the financial capital Mumbai, Maharashtra continued to lead the tally. UP moved to number two followed by Tamil Nadu with GSDP Rs 19.2 lakh crore, Karnataka Rs 18.03 lakh crore, and Gujarat Rs 17.4 lakh crore at number 3, 4, and 5, respectively. Tamil Nadu was second and Gujarat third last fiscal while Karnataka was at the fourth slot.

    The increase in GSDP and UP climbing up to the second position given severely receding economy in first two-quarters of the last fiscal in the wake of COVID-19 triggered lockdown, reflects the revival of economic activities.

    As per the economic experts, the upsurge in GSDP is an indicator of the resilience being shown by non-agriculture activities in the state which hugely banks upon agriculture to sustain its economy.

    Be it the ease of doing business wherein UP clinched the second position in the country or even distribution of Kisan Samman Nidhi, the central govt scheme, wherein, it was adjudged the best-performing state in the country, UP has been leaving an impact at the national level.

    CM Yogi Adityanath had revealed on the floor of Assembly during the ongoing budget session that the UP government had accorded the benefit of Kisan Samman Nidhi Yojna to a total of 2.37 crore farmers in the state, the certificate of which was given by the Centre.

    Moreover, the CM also informed the house that of the MoUs of Rs 4.28 lakh crore inked during the investors’ summit in February 2018, nearly Rs 3 lakh crore have started at the ground level. State exports have also increased to 32% in the last two years.

  • Finance Minister Nirmala Sitharaman is harmful for Indian economy: Adhir Ranjan Chowdhury

    By PTI
    NEW DELHI: The Congress on Saturday alleged that Finance Minister Nirmala Sitharaman was harmful for the economy of the country and had pulled down the economic indicators while profiting a few capitalists.

    Reacting to the FM’s reply to the Union Budget discussions in the Lok Sabha on Saturday, Congress leader in the Lower House Adhir Ranjan Chowdhury also said that the FM, instead of answering queries, kept hurling “derogatory remarks at Rahul Gandhi”.

    “Finance Minister Nirmala Sitharaman is harmful for the economy of the country. How does she explain Oxfam report revelations which said the lockdown made India’s billionaires 35 per cent richer, while 84 per cent of households’ support income suffered a loss and 1.7 lakh people lost their jobs every hour in April, 2020 alone,” Chowdhury said.

    The Congress leader asked how does the FM explain that income increase for India’s top 100 billionaires since March 2020, which is enough to give each of the 13.8 crore poorest people a cheque of over Rs 94,000 each.

    “The finance minister’s misplaced priorities include tax concession for corporate in financial year 2019-20 that amounted over Rs 1.4 lakh crores. Instead of creating jobs, they used the money for trimming up their balance sheets,” alleged Chowdhury, asking how does she explain reducing the outlay for agriculture.

    He said the budget for agriculture had been reduced from Rs 1.54 lakh crore in the previous budget to 1.48 lakh crores in this budget, a cut of 6 per cent.

    “It has been reduced from 5.1 pc to 4.3 pc of overall budget. What could be the possible explanation for slashing the MGNREGA fund in her budget? The allocation to MGNREGA has been cut from Rs 1.66 lakh crores this year to Rs 96,773 crores in 2021, a cut of around 42 per cent,” Chowdhury said, attacking the FM for petroleum subsidy which, he said, had hit everyone. The Congress leader said that instead of answering their queries, the FM “kept hurling derogatory remarks at Rahul Gandhi”.

    “This is the government which does not honour the leaders and workers of the opposition party. By riding roughshod over the opposition, they have been trampling each and every demand of our party,” said Chowdhury.

    Asked about whether Rahul Gandhi would visit the LAC if a related proposal of the parliamentary standing committee on defence goes through, Chowdhury said when the opposition wanted to visit Jammu and Kashmir after the abrogation of Article 370, they were not allowed.

    “When we sought that the government send an all-party delegation to J&K after the abrogation of Article 370 we were not allowed to go. But the government allowed European Union leaders under an orchestrated visit. Even later they kept sending ambassadors of other countries to Kashmir for picnics but did not allow their own MPs to go,” he said.

  • COVID-19 didn’t deter Centre from taking reforms to ensure India’s long-term growth: Nirmala Sitharaman

    By ANI
    NEW DELHI: Union Finance Minister Nirmala Sitharaman on Saturday said that the ongoing COVID-19 situation did not deter the Central government from taking measures for reforms that are necessary for sustaining long term growth for this country.

    While replying to the discussion on the Union Budget in Lok Sabha, Sitharaman said that these reforms will lay a path for India to be one of the top economies of the world in the coming decade and further.

    “I would like to highlight – stimulus plus reforms. The pandemic did not deter us from taking up reforms that would sustain long term growth. We have taken not just one-off reforms, not just now and then, but reforms rivetted in a policy which will give a neat background, a layout spread before the Parliament for people to know that this is a reform that will lay a path for India to be one of the top economies of the world in the coming decade and further,” the Finance Minister said.

    She reiterated that India’s approach to the COVID-19 resulted in a retraction in the pandemic.

    “Because we had an approach which was spearheaded from the front by the PM, we have had a retraction in the pandemic. Death rates are the lowest in the world and active cases have come down,” she said.

    “This Budget draws from the experience of the Prime Minister when he was Chief Minister – on the ground in Gujarat, seen so many revivals happening at a time when the license quota raj was going away post-1991 and then based on that experience, commitment to reform was blended into this Budget,” the minister added.

    Sitaraman, while replying to the discussion on the Union Budget in Rajya Sabha on Friday, slammed the Opposition and accused them of constantly alleging a false narrative that the government only worked for cronies and said several of the Centre’s schemes were for the poor.

    She reminded members of the Upper House of several schemes that have been implemented for the poorer sections of the country, like the Pradhan Mantri Awas Yojana and the Pradhan Mantri Saubhagya Yojana.

    She also said the Union Budget 2021-22 is the instrument through which Aatmanirbhar Bharat is to be attained and asserted that the government is also looking at “long-term sustainable growth”.

    Finance Minister had presented the Union Budget 2021-22 in the Parliament on February 1. 

  • ‘Government policies responsible’: CPI says wrong to term economic crisis ‘act of God’

    By PTI
    NEW DELHI: The CPI on Friday hit out at the government for terming the economic crisis as an act of God, and said the policies of the government are squarely responsible for the situation and not the almighty.

    Participating in a discussion on the motion of thanks on the President’s address, CPI member Binoy Viswam said the government’s much-touted Rs 20 lakh crore financial package was only a “gimmick” as only around Rs 2 lakh crore reached the people instead.

    The CPI member did not support the motion of thanks on the President’s address.

    ​ALSO READ | Government sticks to USD 5 trillion economy target; emphasis on infra aimed at achieving goal: DEA Secy

    He also urged the government to bring a national employment act on the MGNREGA model and said there should be an employment scheme for addressing the problem of unemployment among the youth of the country.

    Viswam said the finance minister termed COVID-19 and the crisis in the economy as an act of God.

    “How can it be an act of God,” he asked, noting that it is true that the country faced difficulty during the lockdown days, but the economy was on the downturn even before COVID-19.

    In 2020 March, the economy had fallen down to the level of 3.1 per cent GDP, whereas in 2018 March it was at 8.2 per cent.

    ​ALSO READ | India’s budget shot in the arm for economy, fiscal consolidation takes a back seat: S&P

    He said from 8.2 per cent GDP to 3.1 per cent in March 2020 in the beginning of lockdown, means that under the BJP government the economy was in “shambles”.

    “Don’t try to put that blame on God. I am not a believer in God, but I believe in the true believers of all religions. I am sure that God is not so cruel. God cannot be so cruel. So don’t put the blame on Gods. God was not the culprit, the culprit was government’s policies,” he said.

    “So instead of taking the blame for its failures, the government was trying to say that it all happened because of the Gods which is not a good thing,” the CPI member said.

    ALSO WATCH:

    Viswam also said that private construction expenditure was 5.1 per cent in 2019-20 and it collapsed to 2.7 per cent in 2020 March and this figure has been the lowest since 2012.

    On the Rs 20 lakh crore financial package announced by the finance minister, the CPI member held that this money did not reach the people of the country.

    “In fact, it was a gimmick with figures and only Rs 2 lakh crore was disbursed at the maximum and the government is preaching everything that it has spent lakhs and lakhs for the poor to save their interests, which cannot be understood or accepted,” he said.

    Viswam said corporate profits during COVID-19 rose to the level of 35 per cent and the money of 100 billionaires was enough to give to 138 million poor, but the government was not keen on that.

  • India’s economic recovery post-COVID is strong; Union Budget will be game-changer: BJP

    Addressing a press conference here at the party headquarters, BJP spokesperson Gopal Krishna Agarwal said that the Modi government has been walking on the path of strong reforms.