The Nikkei/IHS Markit Services Purchasing Managers' Index went up to 55.5 in January, its highest level since January 2013. The manufacturing index also showed a strong up move. Although these are encouraging signs, it is difficult to conclude that economic recovery is gaining strength. It would be interesting to see how the monetary policy committee looks at these indices, which is widely expected to maintain a status quo on the policy front.
Business Standard Opinion pieces for the day talk about the Budget, Finance Commission and other policy issues.
The Finance Commission is a constitutional body which must consider the long-term importance of Indian federalism, not the short term fiscal concerns of the government of the day.
Its final report should reflect that high duty as much as has its interim report, says our lead editorial. Read here
Budget falls short on farm reforms execution, argues our second editorial
Government litigation expenditure increased threefold from 2016 to 2018, with government being a party to around 46 per cent of lawsuits in July 2018, despite its stated intent of reducing litigation, writes Shyam Ponappa
The problem with the government’s tax revenue estimates is not new. But it got worse when the interim Budget was presented in February 2019, writes A K Bhattacharya