The Coronavirus disruption to global supply chains
Asian economies import 20-30 percent of their intermediate goods from China
The fall in the savings rate is a symptom of a deeper problem
A decade ago, investment and exports powered India’s growth, while the share of consumption in GDP declined; in recent years, however, consumption has been the only growth engine and even that is now faltering
Global food prices reach for the sky | Chart of the day
An increase in food prices, across cereals, oils, sugar and dairy pushed the FAO Food Price Index higher in January
Railways needs to pay attention to efficiency
One area which cries out for attention and is set to get worse is staffing
Coronavirus | The Kerala story and challenges before India
A robust health administration mechanism running on the wheels of government-run primary health centres, with healthcare infrastructure at affordable rates, on par with the private hospitals, sets Kerala apart, allowing it to rub shoulders with the developed world.
Politics | If BMC is selling family silver, all’s not well with Mumbai
The BMC’s finances took a major hit with the GST replacing the octroi. This hole in its revenue is now filled by the Maharashtra government, increasingly making Mumbai and its growth dependent on the equation the state government shares with the party running the municipal corporation.
Chart of the Day | Manufacturing capacity utilisation in Q2 lowerthan during global financial crisis
RBI survey shows capacity utilisation in manufacturing during the second quarter of the current fiscal year fell to its lowest level since the first quarter of 2008-09
RBI survey shows consumer confidence continued to plunge in January 2020
Consumer perceptions about jobs, incomes and non-essential spending continue to worsen
Smart meters need smart planning
Full-fledged roll-out of prepaid meters tough to execute unless states come on board and funds are in place
ITI FPO withdrawal – could be a blessing in disguise
That the market is not yet in euphoric territory is seen from its rejection of the ITI FPO
RBI Policy | Stance to stay accommodative as long as output gap is negative
One more rate cut will depend on how quickly inflation appears to be reverting back towards 4 percent.
RBI policy review | The next rate cut is only a matter of timing
In the April policy, it might have enough reasons to act and then wait some more.
Monetary Policy | All about transmission and credit push?
The RBI is likely to maintain its accommodative stance through FY21 and any space for a rate cut may open up once there is clarity on the monsoons
Politics | How far is the Inner Line Permit in Assam feasible?
Being centrally located and connected to the mainland and the rest of the six states, Assam has too many entry and exit points. In most likelihood, the law would be rendered redundant and difficult to implement.
No rate cut, but a whole lot to boost sentiments
The monetary policy panel didn’t cut rates because it is very concerned about the inflation hydra
The glaring inconsistency between deteriorating credit conditions and equity market highs
For the nine months ended December 2019, there were 183 downgrades for every 100 upgrades. The downgrade to upgrade ratio was only 0.96 for FY19.
Delhi Elections | Extravagant promises, that too in writing
The Delhi elections seem to have struck a new high with the leading parties — the Aam Aadmi Party (AAP), the Bharatiya Janata Party (BJP), and the Congress — making abundant promises of freebies in their election manifestoes.
Startups | Budget 2020 came half way, more to cover
New initiatives will go a long way in making the new-age Indian startup entrepreneur a lot more confident.
Monetary and fiscal policies need to go hand in hand
An accommodative monetary policy with a temporary pause in the rate-cutting cycle is the need of the hour
Delhi Elections | Will Congress’ strategy in Delhi pay off?
The Congress has taken a massive and perhaps fatal gamble by sitting out the Delhi elections in the interest of ensuring that the AAP returns to power.
Chart of the Day | Why the government is taking the axe to exemptions
A steady increase in the impact of exemptions on tax revenue is a good enough reason to wean people from tax sops
The MPC will have to factor in a broad-based rebound in activity shown by the January PMI indices
The MPC will also have to consider the rise in output prices shown by the PMI index
Politics | Will the Bodo accord bring peace to western Assam?
While the peace accord has brought cheer to thousands of Bodos, an uneasy silence is observed among the non-Bodos, who constitute the majority of the region.
The impact of the coronavirus on the global economy and markets
Massive Chinese stimulus has reassured markets but investors are weighing hedge options for the tail risk scenario
