Country’s macroeconomic policy think tank- the NITI Ayog has finally come out with a daft policy proposal in the form a three-year action agenda for the economy. The draft agenda seems to be a very diluted copycat of the erstwhile Planning Commission’s Five year plans. The agenda includes general themes like doubling farmer’s income by 2022, expanding tax base, shifting additional revenues to the priority sectors, creation of employment, bringing down land prices etc. The agenda was unveiled at a press meeting chaired by NITI’s Vice Chairman Arvind Panagaria. According to institution, the action agenda will be implemented by executive decisions. Need
The Agricultural Ministry came out with an amended Model APMC Act that brings significant changes in the existing rule proposed in 2003. Fresh changes include several steps to stop fragmentation of agricultural markets by establishing a common fee and licensing for statewide agricultural marketing. The model AMPC also abolishes the earlier concept of notified area that caused fragmentation of the agricultural markets within a state. Centre has already asked States to modify their APMC Acts by introducing a single license and single point of levy of market fee at the State level. Objective is to make a gradual migration towards a single license and single point of levy of market fe
The Union Cabinet allowed financially sound state entities to borrow funds from Official Development Assistance (ODA) for financing infrastructure projects. Explaining the decision of the Cabinet, Finance Minister Arun Jaitely hoped that the move will help to support vital infrastructure project at the state level. Objective of the move Enabling the state entities to directly access funds from official lenders like ADB will avoid the debt to enter into the book of the state government. On the other hand, a state government initiated borrowing is a budgetary exercise and will aggravate the revenue deficit problems. States generally are reluctant to do it as it will adversely
India slipped one position to be placed at 131 rank in the just published Human Development Report 2016. Out of the 188 countries ranked, India’s HDI score improved from 0.615 to 0.624 in 2015, though its rank fell. India’s ranking was 130 last year. The country continues to improve its score among the Medium Human Development Countries. around 45% of the world’s population live under medium Human Development category countries whose HDI score lies between 0.55 to 0.699. The Human Development Report published by the UNDP titled with Human Development for Everyone concentrates on low profile human development in some regions. South Asia is one of the worst perfor
The Wholesale Price Index (WPI) and Index of Industrial Production (IIP) are to get new base year from April this year. Central Statistical Office (CSO) which is preparing the IIP, hinted that the new base year will be 2011-12. WPI is published by Ministry of Commerce and Industries, prepared monthly and is touching the price data at wholesale level. The IIP is about industrial production and is published on a monthly basis by the CSO. Both indices are having 2004-05 as the base year as of now. Economic environment has changed significantly from the 2004-05 scenario and the CSO was thinking about shifting it to a more recent year as in the case of Consumer Price Index where the b
The Central Statistical Organization’s GDP growth estimate indicate that economic growth rate has not affected much during the December ending third quarter. Gross Domestic Product recorded a growth rate of 7 % during October-December- third quarter against the predicted 7.1 % growth. The data covers toughest fifty-two days of demonetisation period from November 9 onwards. The CSO has revised 2016-17 growth to 7.1% as the last quarter estimate is to be published in two months. Economic growth was 7.9% in 2015-16 and 7.2% during 20114-15. Releasing the data, Chief Statistician TCA Anant said that it is difficult to assess the impact of demonetisation on GDP growth. According
India’s economic administration continues to unleash heavy attack on the inconsistent rating practices followed by global agencies. Economic Affairs Secretary Shaktikanta Das told agencies that rating agencies are several steps behind from reality. They are missing something which they only can best explain. The Economic Survey 2017 also questioned the rating history and credibility of global agencies. Despite India continues to be one of the bright spot with stability, rating agencies failed to upgrade the country’s ratings in recent years. At the same time, their rating of several other countries with low macroeconomic conditions continues to be far good. The
Retail inflation (CPI) came down to 3.41 % - its three year low in December 2016 according to the latest data from Ministry of Statistics and Programme Implementation. The inflation rate was 3.63% during November. The inflation rate is at its lowest level since January 2014. During the last year, on the same month inflation rate was 5.61%. The inflation data was curiously watched by economists and policy makers and several of them predicted a fall in inflation in the background of reduced consumption impact from cash constraints. Downward pressure on prices was mostly induced by vegetables and pulses. The consumer food prices fell to 1.37% compared to 2.03% in the previou
The Central Statistical Organization’s advance GDP estimate for the current year indicates a decline in the country’s growth rate to 7.1%; without considering the demonetisation period. This was in contrast to 7.6% growth achieved in the last year. According to Chief Statistician of India, TCA Anant, the slowing economy estimate is based on the first seven months (April to October 2016) of the fiscal year. Hence, the projection doesn’t account for the demonetisation impact on the economy as the report is based on first seven months of the financial year. Both manufacturing and service sector are expected to register reduced growth rate according to the CSO&rsqu
In the background of the support extended by the poor and low income people to demonetisation efforts, PM has announced group of interest subvention and credit incentives for them. It is assessed that the low-income strata have suffered the heaviest from demonetisation produced economic havoc. In his address to the nation, Modi announced several housing interest waiver packages to the poor. Two housing schemes that have interest subsidy for the urban poor and lower middle class will come into force from 2017. For housing loan, up to Rs 9 lakh, the government will provide 4% interest subsidy, while for housing loans of up to Rs12 lakh, a 3% interest subsidy will be granted. Under
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money