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
If one pleasant change is happening for Indian Railways in recent years, it is merger of its budget with the general budget. This time, the Rail budget will be presented as a part of the general budget. Here, the age-old transportation giant gets an opportunity to enhance its performance. Putting Railways under the general budget will help the institution to evade free-bee searching public eye for fare concessions. Finance Minister in a recent press Conference told that Railways should concentrate more on performance, switching away from populism. The new rail budget format is expected to pursue serious disciplines which are in dire need to rebalance the railway finance. Fares m
The iron lady of Tamil Nadu- Ms Jayalalitha who ruled the state like a Prime Minister for a long time, has passed away. Her demise was announced by the Appollo Hospital where she was under treatment for 74 days. Ms Jayalalitha who comes from film field like several other state political leaders embraced politics after the death of former Chief Minister MG Ramachandran in 1987. Later years saw the emergence and growth of Jayalalitha as a rare breed on Indian woman politician who ruled her domain like an emperor. She made intense fight with rival DMK and undergone jail terms in a corruption case. Ultimately she won and maintained the trust of the Tamil people as thier unquestionabl
Crumpling demand and expenditure, slowing investment all indicate that the economy is in a sudden stop which may bring down economic growth to below 7 % this year. Though a fall in growth rate was expected out of the present currency chaos, the stampede in growth will be high according to several private analysts. Indications are that the economy may register its lowest growth rate since the global financial crisis year of 2008. The country’s economy which withstood the ongoing global recession is about to steep fall in the context of demonetization according to several estimates. Ambit Capital who makes a very conservative assessment every time has revised GDP growth figur
Depicting India’s inability to curtain pollution in the country, air pollution levels are getting aggravated in the National Capital during the last few weeks. Delhi is ranked as the most polluted mega city in the world. It has consistently outgrown Beijing in terms of air pollution. Health Monitors and Media were constantly bringing updates about the worsening air quality in the mega city in recent days. Air quality has deteriorated making life difficult for kids and asthma patients. The killer smog is already making road view difficult. Recent air quality statistics showed levels of PM2.5 – the tiny particulates that can reach deep into the lungs, above 999 mic
The UIDAI’s (Unique Identification Authority of India) mega identification programme Aadhaar so far covered 106.69 crore people making it the biggest identification programme in the world. Aadhaar has now become the data base platform for delivering several of the government’s transfers to the people. In the context of the success, the Authority of India) is aiming to bring all people including the so far excluded from the Aadhaar network. For this, it will roll out a plan called ‘Challenge drive’ from October 15th onwards. Challenge drive will be launched in 22 states and union territories where the coverage has reached nearly 100 percent. The prog
The World Bank report on Poverty says that poverty and inequality have declined after the global financial crisis. Bank’s new report – ‘Poverty and Shared Prosperity’ says that though poverty has come down, high growth is needed to end extreme poverty by 2030. The Report observes that three countries – China, Indonesia and India were the main actors in reducing global poverty. Progress on reducing absolute poverty was driven by East Asia and Pacific. The report says that nearly 800 million people lived on less than US $ 1.90 a day in 2013. Half of the world’s poor lives in Sub Saharan Africa and a third in South Asia. East Asia and South Asia w
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- 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
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money