Modi govt’s approach in Budget may bring growth for few years, despite slowing world economy, rising rates. But problems in areas including education won’t just vanish automatically.
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.
For an industry globally classified as hazardous, protections such as health insurance and a provident fund for workers are necessities. In Sivakasi, they remain elusive.
The industry forecasts exports are set to grow 16% in 2025-26, boosted by surplus domestic production and a drive to push into 26 underserved global markets with strong potential.
Indigenisation level will progressively increase up to 60 percent with key sub-assemblies, electronics and mechanical parts being manufactured locally.
It is a brilliant, reasonably priced, and mostly homemade aircraft with a stellar safety record; only two crashes in 24 years since its first flight. But its crash is a moment of introspection.
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