The next round of easing business regulations—a much bigger problem for MSMEs than for big firms—needs to be driven by states in areas of land, labour, transport, & penalties, it said.
While releasing 'India Employment Report 2024', V Anantha Nageswaran said govt can't solve 'all social, economic challenges'. Congress leader Kharge says CEA protecting 'dear leader'.
India in its economic thinking has stood out from the rest of the world, not only in terms of reforms but by converting the Covid crisis into an opportunity, he said.
Fiscal support should continue till 2023 when India may return to pre-Covid growth levels, said Krishnamurthy Subramanian, adding that the 2-6% inflation band has served India well.
In the absence of a vaccine, the economic recovery will have to wait until next year, although that too is likely to be V-shaped, CEA Krishnamurthy Subramanian said.
To enable Indian economy to strongly rebound in 2020-21, Economic Survey 2020 urges Modi govt to use its strong mandate to expeditiously deliver on reforms.
Fears that an escalation of the conflict could heighten a fuel squeeze & endanger the economy unnerved traders, with NYT reporting Iran stopped negotiating a truce with the US.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
The argument is that the weakening rupee is about “exchange rate” and not PPP related – which is why someone even claims that it is a “perfect medicine” assuming both economies offer “Public goods” at the same level – so PPP-wise we are ok with a falling rupee.
That base itself is flawed – the basis on which they both make their argument:
PPP calculations assume that “public goods” (air, water, safety, roads) are equal and free in both countries. They are not.
In the US: You pay high taxes, but you get clean air, drinkable tap water, 24/7 electricity, and walkable sidewalks “for free” (included in the system).
In India: You pay lower taxes (nominally), but the state provides none of these effectively. You have to buy them privately.
Air: You buy Air Purifiers (Rs 15k+ each).
Water: You buy RO filters and water softeners.
Power: You buy Inverters or Generators.
Safety: You pay a premium for a “Gated Community” to escape the chaos outside.
The Reality: Your “high PPP” savings in India are immediately drained by paying for things that are basic rights in the West. You are essentially running a mini-municipality inside your own home.
Factor in all that math when trying to treat the “exchange rate” as a medicine for the elevated tariffs.
Common sense says : if you make something at loss dont product it. Had the same tariffs been in the domestic market should the rest of India accommodate to absorb those tariffs? Then why should be slide the rupee to accommodate those export industries?
The argument is that the weakening rupee is about “exchange rate” and not PPP related – which is why someone even claims that it is a “perfect medicine” assuming both economies offer “Public goods” at the same level – so PPP-wise we are ok with a falling rupee.
That base itself is flawed – the basis on which they both make their argument:
PPP calculations assume that “public goods” (air, water, safety, roads) are equal and free in both countries. They are not.
In the US: You pay high taxes, but you get clean air, drinkable tap water, 24/7 electricity, and walkable sidewalks “for free” (included in the system).
In India: You pay lower taxes (nominally), but the state provides none of these effectively. You have to buy them privately.
Air: You buy Air Purifiers (Rs 15k+ each).
Water: You buy RO filters and water softeners.
Power: You buy Inverters or Generators.
Safety: You pay a premium for a “Gated Community” to escape the chaos outside.
The Reality: Your “high PPP” savings in India are immediately drained by paying for things that are basic rights in the West. You are essentially running a mini-municipality inside your own home.
Factor in all that math when trying to treat the “exchange rate” as a medicine for the elevated tariffs.
Common sense says : if you make something at loss dont product it. Had the same tariffs been in the domestic market should the rest of India accommodate to absorb those tariffs? Then why should be slide the rupee to accommodate those export industries?