RBI data shows a sharp increase in households borrowing against gold. Other indicators also show higher borrowing. More credit is fine, but vaccination needs priority.
With a decline in new Covid cases and gradual unlocking, demand will mend in the next few months. Some weekly indicators are already signalling a pick-up in economic activity.
Current lockdowns, fear & uncertainty are driving down growth, but with second wave slowing, there’s hope that economic activity will improve in next quarter.
Indian economy is expected to do better than last year, but growth could be 11% or even lower, compared to the pre-2nd wave projections of 13% and above.
RBI’s relief steps are centred on small borrowers and entities in unorganised sector. Credit needs of the healthcare sector are addressed too. Implementation now holds the key.
In the new phase starting 1 May, both demand and supply aren’t Centre controlled — any adult can choose to get vaccinated, and all states and institutions are allowed to buy vaccines.
At current vaccination pace, India would’ve taken 2 years to cover the entire population. New vaccines can speed up that process, and provide other benefits too.
New G-SAP tool is RBI’s way of keeping govt’s interest burden low. But amid inflation concerns, it also has to raise interest rates to prevent price rise.
It is necessary to break the spell of socialist dogma on the imagination of those attracted by its Utopia as the only scientific way of progress, wrote MA Venkatarao in 1963.
While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
It is one of the most advanced long-range air defence and anti-missile radars. It has been acquired under an about USD 145-million deal signed in 2020.
To be truly functional and durable, even eternal, a state doesn’t just need a leader, a party or an ideology. It needs functional and robust institutions.
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