Modi govt had in early 2018 announced vision to achieve $5 trillion economy level by the 2025 fiscal, but the domestic economy started losing momentum because of the Covid pandemic in 2020.
With both GDP and inflation rising, central banks around the world may hike interest rates leading to instability in financial markets. But it’s not all bad news.
Strong demand is keeping India on track to achieving world’s fastest growth in the year to March, with new weekly infections dropping to lowest in more than 6 months.
Steep jump in medium-term growth rates, of the kind projected, needs strong private & govt investment, domestic demand & exports. Govt has bet on growth in own investment, while exports are doing well.
There are some early signs of moderation in inflation and a pick-up in growth, but RBI is likely to monitor growth and inflation before a decision on changing rates.
In ‘Redesign the World’, Sam Pitroda argues that hyperconnectivity and Covid-19 have offered a unique opportunity to redesign the world to meet future challenges.
China, on the other hand which was the only major economy to have a positive growth rate of 2.3 per cent in 2020, is expected to grow by 8.6 per cent in 2021 and 5.6 per cent in 2022.
As wave upon wave of Covid-19 is seen in India & abroad, the year is likely to witness alternating good & bad news, causing volatility in financial markets.
Economists are concerned about high cost of freebies since pandemic has hit growth. Industry experts want new govt to focus on MSMEs & ease of doing business.
Mini deal will likely see no cut in 10% baseline tariff on Indian exports announced by Trump on 2 April, it is learnt, but additional 26% tariffs are set to be reduced.
The Chinese are said to have hired ex-fighter pilots & air force operators from NATO countries over the past several years to help them fine-tune their operational & flying capabilities.
Public, loud, upfront, filled with impropriety and high praise sometimes laced with insults. This is what we call Trumplomacy. But the larger objective is the same: American supremacy.
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