The year 2020 is possibly the most horrible year since the end of second world war. The all-pervasive influence of the pandemic made the turbulence of last few years a breeze. However, that was not the only crisis India, as a nation had to face with China creating another trouble spot on the borders. Here is a look at some of the far-reaching events of the year. Continue reading The Year That was – Economy & Policy
Category: Economy
Food Processing Industry – An Overview
Covid-19 seems to have brought greater attention to food processing industry, with most of the population having increased their spending on the same. For the nation, the challenge was to produce enough to feed its people fifty years ago, the objective now is to help agri-producers move up the value chain. India, at the moment, … Continue reading Food Processing Industry – An Overview
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State of the Economy – Analysing the Liquidity Condition
Indian economy, indeed, global economy is going through an extraordinary loose monetary policy phase to minimise the impact of Covid-19. While the policy hasn’t yet led to the intended outcome of higher borrowing, it certainly has led to sharp increase in market liquidity. This poses another set of risks, although not immediately. But what exactly … Continue reading State of the Economy – Analysing the Liquidity Condition
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State of the Economy – Tracking the Recovery
While the GDP data for Sept’20 quarter released recently gave a sense of optimism, there is an even greater sense of eagerness to understand as to how the economy is faring this quarter. As per a Ministry of Finance report, a large number of high-frequency indicators have recorded robust growth in Oct- Nov, some of … Continue reading State of the Economy – Tracking the Recovery
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EPFO Payroll Data – Estimating the Recovery After Covid-19
While Covid-19 led to unprecedented job losses, the latest EPFO (Employees’ Provident Fund Organisation) data provide considerable hopes of reversion to normalcy. As per the latest release, Indian economy added close to 15 lakh new jobs during Sept’20. This has not only compensated for jobs lost during April-May but helped total jobs added during first … Continue reading EPFO Payroll Data – Estimating the Recovery After Covid-19
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GDP, Sept’20 Quarter – Analyzing the Performance
The GDP for quarter ended Sept’20 (Q2’FY21) recorded a decline of 7.5%, as per the data released by NSO (National Statistical Office) today. While the contraction would have been a cause of great worry, it is actually quite comforting in the current circumstances. Another positive for the quarter is growth recorded by manufacturing sector, although marginally, which had declined for three successive quarters even before COVID-19. However, what is intriguing is that government curtailed its expenditure during the quarter without waiting for the full recovery. Looking at the performance, it is quite likely that the economy may be able to restrict full year contraction to about 6-7%, lower than projections of close to 10% made so far. Here is a brief analysis of GDP and its constituents. Continue reading GDP, Sept’20 Quarter – Analyzing the Performance
Analysing Inter-State Socio-Economic Disparity
While GDP growth at the national level remains the focus in most discussions, the inter-state disparity goes completely unnoticed. A manifestation of the unbalance was evident during the beginning of the pandemic when mass exodus of migrants occurred, largely from Western and Southern India – the workplace, to Northern and Eastern India – the hometown. … Continue reading Analysing Inter-State Socio-Economic Disparity
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Agriculture Sector – ‘Marketed Surplus’ and Other Issues..
The passage of farm bills recently has brought focus on the agriculture sector. While agriculture, as a whole, remains an under-developed sector, the inter-state variation is even starker. This is reflected in the ‘marketed surplus’ of different states. Marketed surplus is the quantity that farmer sells in the market after keeping aside the produce for … Continue reading Agriculture Sector – ‘Marketed Surplus’ and Other Issues..
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Capital Flow – FDI, FII and the Rest
India’s persistent deficit on current account or current account deficit (CAD) is financed by the flow on capital account which forms the other part of international balance of payment. Some of the major elements of this are FDI, FII, ECB etc. If there is a shortage on this count too, there will be a reduction … Continue reading Capital Flow – FDI, FII and the Rest
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India’s International Trade – Understanding the Constituents (Part II)
India recorded merchandise exports of $320 bn in FY20 against imports of $474 bn, leading to trade deficit of $154 bn. The surplus on ‘invisibles’ account was $132 bn, reducing the current account deficit to $32 bn. Invisibles as a category comprises of large number of sub-groups. Invisibles comprise of three segments – Services, Transfers … Continue reading India’s International Trade – Understanding the Constituents (Part II)
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