Context: The government’s economic recovery hype is no rights and this is not a time for fiscal conservatism. What is current economic scenario? India’s economy contracted by 7.5% in the second quarter of financial year 2020-21 was, both good and bad. It is far lower than the 23.9% contraction registered in the first quarter of… Continue reading Dangers of misplaced optimism in economy
Tag: ECO_2
Indian economy witnessing V-shaped recovery: Finance Ministry report
Source: Click here Finance Ministry’s Monthly Economic Review report has stated that the Indian Economy is witnessing a V-shaped recovery as the decline in the GDP has narrowed to 7.5% in the second quarter of 2020-21 from 23.9% in April-June quarter. Facts: V-shaped recovery: It is characterized by a quick and sustained recovery in measures… Continue reading Indian economy witnessing V-shaped recovery: Finance Ministry report
Economic recovery
Context: A recovery led by profits, at the expense of wages, has implications for demand, inequality and policy. GDP is typically reported in two ways: The sectoral, production side (agriculture, manufacturing, services) and the functional, expenditure side (consumption, investment, net exports). Third way: On the income side, GDP is calculated as the sum of profits, wages and indirect… Continue reading Economic recovery
GDP recovery- questionable data
Context- The Q-2 sharp recovery is very tactical because of pent-up demand, because of lockdown and the Data used for quarterly growth rates are weak and questionable. What in the news- The second quarter GDP contracted at a slower pace of 7.5 percent compared to a massive 23.9 percent in the first quarter of the… Continue reading GDP recovery- questionable data
Present State of economy
Context: The pandemic has delivered a “scissor cut” to the government finances. What is the current scenario? Economic output and government revenues are shrinking. The government has to spend more to safeguard lives and livelihoods. Widening deficit. Most of state’s revenue come from center which changes their debt servicing ability for the worse. What are… Continue reading Present State of economy
Export: A key to economic growth
Context: Arvind Panagariya’s new book, India Unlimited: Reclaiming the Lost Glory, discuss systematically how to reconstructs a path to higher growth. What is the present scenario? Public sectors confronting a mountain of debt, the fiscal will need to be reined in post-COVID across several emerging markets. COVID-19 will accentuate the prevailing export pessimism, as global potential… Continue reading Export: A key to economic growth
Base year of CPI-IW changed
The Labour and Employment Ministry on Thursday revised the base year of the Consumer Price Index for Industrial Workers (CPI-IW) from 2001 to 2016. Why the base year for the Consumer Price Index for Industrial Workers(CPI-IW) has been changed? Due to the changing consumption pattern, more weightage has been given to spending on health, education,… Continue reading Base year of CPI-IW changed
Bangladesh’s per capita income greater than India’s
Source: Indian Express Syllabus: Gs3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Context: For the year 2020, the per capita income of an average Bangladeshi citizen would be more than the per capita income of an average Indian citizen. Why India’s per capita income has fallen below Bangladesh… Continue reading Bangladesh’s per capita income greater than India’s
Indian economic recovery – Unlock phases
Source- The Indian Express, The Indian Express Syllabus- GS 3- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment Context– India’s economy shrank nearly 24 percent in first [April-June] quarter of 2020, the most drastic fall in decades. Reasons for GDP contraction Draconian lockdown– India had the most intense lockdown starting from March… Continue reading Indian economic recovery – Unlock phases
COVID – 19 and India’s road to economic revival
Source – The Indian Express Syllabus – GS 3 – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Context – ‘Unlocking’ and ‘Revival package from the government’ are the two basic factors that will determine the course of India’s economy for the rest of the year. Impact of COVID-19 on GDP GDP… Continue reading COVID – 19 and India’s road to economic revival
