World Bank has revised India’s GDP projection for current fiscal to 7% from previous estimate of 6.6%. Pick-up in agriculture & govt spending should lift growth in the coming quarters.
UPS seems more fiscally prudent than Old Pension Scheme, but reverses New Pension System’s equitable coverage. More spending on pension may limit space for spending on productive avenues.
In the April-June quarter, elections, govt spending slowdown & heatwave are expected to have contributed to slower growth. Going forward, rural demand may see a pick-up.
Bangladesh, a major export market for India, is already grappling with inflation & unemployment. The unrest can worsen the situation, impacting import demand.
Weak US jobs data signalling slowdown, interest rate hike in Japan, geopolitical tensions may trigger problems for India’s markets. RBI is prudent in holding interest rates for now.
A Bank for International Settlements survey shows that, compared to last yr, world economies seems more likely to issue Central Bank Digital Currency (CBDC) in medium term than short term.
The full budget retains focus on fiscal consolidation. In her budget speech, finance minister mentioned the intent will be to fix fiscal deficit with debt-GDP ratio on a declining path.
With a favourable macro-fiscal backdrop, the finance minister can use the additional fiscal space to either hasten the path to consolidation or support the sectors with subdued growth.
Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.
RBI’s latest financial sector report card highlights drop in NPAs, capital buffers for banks & better asset quality for NBFCs. But new sources of risk, like climate change, have emerged.
Recommendations appear in Niti Aayog’s Tax Policy Working Paper Series–II. It says there is a need to shift away from fear-based enforcement to trust-based governance.
In service with the British military since 2019, it is also known as the Martlet missile. Ukrainians have also deployed these missiles against Russian troops.
Education, reservations, govt jobs are meant to bring equality and dignity. That we are a long way from that is evident in the shoe thrown at the CJI and the suicide of Haryana IPS officer. The film Homebound has a lesson too.
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