Moody’s Investors Service has said that the growth projection made in the Budget 2020-21 look ambitious in the context of structural and cyclical challenges. The government expects the Indian economy to expand at 10 per cent in nominal terms in the next fiscal year. Slower growth will once again put pressure on government finances.
Meanwhile, according to the latest data, the net household financial savings have declined significantly, and will be a drag on economic revival.
The government is trying to tap more foreign savings, which could increase risks. In the context our lead editorial notes: While the idea of inclusion in global bond indices and accessing global savings has merits at a theoretical level, policymakers should not ignore the fundamental weaknesses of the Indian economy. Read here.
Budget speech should have been fact-checked, argues our second editorial.
The decision to move to prepaid smart electricity meters for all consumers in the next three years — if it happens — would help the distressed distribution companies and, in turn, the renewable energy companies, writes Vandana Gombar.
It will take a mega effort to update India’s Competition Law, laws dealing with foreign direct investment and taxation laws dealing with venture funding if we have to realise our full national potential from e-commerce, writes Ajit Balakrishnan