Page 37 - Economy & Policy Analysis
The power of forward guidance
The point of dissonance is, however, regarding the surplus liquidity sloshing around the banking system and the fear that it might endanger financial stability
Macro backdrop calls for status quo on rates
The MPC in all likelihood would keep the repo rate unchanged at 4 per cent, extending the pause from its August and October meetings and reiterating the accommodative stance
 "Macro backdrop calls for status quo on rates")
India Inc sees a faster return to pre-Covid profits than other countries
A majority of Indian businesses intend to increase financial investment in their business over the next year, notably higher than the global average.
 "India Inc sees a faster return to pre-Covid profits than other countries")
GDP data: Contraction can be ignored, but pre-Covid declining trend irksome
While the country is now technically in a recession with two successive quarters of negative growth, it should not be worrisome as this is the case across the globe with China being the only exception
 "GDP data: Contraction can be ignored, but pre-Covid declining trend irksome")
Indian GDP to contract by 7-9% in FY21; Q2 numbers a positive surprise
Despite the base effect, agriculture and allied activities maintained a steady growth of 3.4 per cent in Q2 FY2021
 "Indian GDP to contract by 7-9% in FY21; Q2 numbers a positive surprise")
FMCG industry sees signs of recovery in September quarter: Nielsen
Rural areas continued to drive growth for the FMCG sector.
 "FMCG industry sees signs of recovery in September quarter: Nielsen")
The payment woes of the Municipal Corporation of Greater Mumbai
Reports suggest that contractors and vendors could set off their dues, such as property tax and penalties imposed by MCGM, using credit notes
 "The payment woes of the Municipal Corporation of Greater Mumbai")
RBI's out-of-the-box solutions may strengthen India's banking sector
Whether YES Bank, PMC Bank or LVB, year 2020 has seen the regulator taking market-oriented solutions to rescue failed banks
 "RBI's out-of-the-box solutions may strengthen India's banking sector")
Covid-19 effect: Small savings cross Rs 1-trillion mark in first 6 months
A record, this is 25% more than last year, and 130% more than the average of the past five years
 "Covid-19 effect: Small savings cross Rs 1-trillion mark in first 6 months")
The pain points that India's burgeoning farm exports don't reveal
Seen at $17.68 bn in April-Sept, the export performance is set to surpass all expectations. Yet, the poor show by buffalo meat and plantation crops tell a different story
 "The pain points that India's burgeoning farm exports don't reveal")
Cities with higher circle rates to gain from Sitharaman's new relaxation
While developers hail FM's announcement, they want the govt to exempt the entire interest paid on housing loan from income tax
 "Cities with higher circle rates to gain from Sitharaman's new relaxation")
India may start 2021-22 with 'little' fertiliser subsidy arrears
Centre allocates extra Rs 65,000 crore for FY21, over the BE of Rs 71,309 crore
 "India may start 2021-22 with 'little' fertiliser subsidy arrears")
Atmanirbhar Bharat 3.0: Prudent measures to boost job creation, stem capital destruction
The government is hoping that the green shoots visible in high-frequency data will further translate into a GDP uplift. And the latest measures - pragmatic and specific - will aid that
 "Atmanirbhar Bharat 3.0: Prudent measures to boost job creation, stem capital destruction")
FM's move on circle rate-deal value gap may not help much in Mumbai, Delhi
Most homes in the two cities are worth more than Rs 2 cr and fall outside the ambit of the relaxation; smaller cities such as Bengaluru, Pune to benefit more
 "FM's move on circle rate-deal value gap may not help much in Mumbai, Delhi")
Stimulus package: Govt may stick to Rs 12-trillion market borrowing target
Fertiliser subsidy will be biggest cost head at Rs 65,000 crore. Housing for all under PM Awas Yojana will cost an extra Rs 18,000 cr
 "Stimulus package: Govt may stick to Rs 12-trillion market borrowing target")
Atmanirbhar Bharat 3.0 to boost sentiment and solidify economic revival
The package offers a variety of measures to boost capital spending and infra investment, incentivise job creation and also provide support to the farm and non-farm portion of the rural economy
Atmanirbhar Bharat 3.0 helps stressed sectors at operational level
Sector-based approach of the 12 announcements made by the Finance Minister would provide succour
Bidenomics: Sanity in post-Covid world, but expect no instant big changes
India, with its market potential, and as a complement to the US economy stands to gain if it plays its cards right
 "Bidenomics: Sanity in post-Covid world, but expect no instant big changes")
Bidenomics: Sanity in post-Covid world, but expect no instant big changes
India, with its market potential, and as a complement to the US economy stands to gain if it plays its cards right
 "Bidenomics: Sanity in post-Covid world, but expect no instant big changes")
Whoever comes to occupy the White House, gold could yet shine better
The environment remains highly favourable for the yellow metal in the medium to long term
 "Whoever comes to occupy the White House, gold could yet shine better")