Page 1700 - Economy & Policy News
First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21
The two growth engines, consumer spending and investments contract massively as govt-led spending lifts GDP from falling further. On supply side, only agriculture shows growth, industry contracts 40%
 "First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21")
India's factory activity grows for first time in five months in August
The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, rose to 52.0 in August from 46.0 in July
 "India's factory activity grows for first time in five months in August")
Pranab as FM: Remembering how he managed controversies, even created some
The gap between Mukherjee's two tenures as FM is testimony as much to his longevity and utility as a politician as to his ability to survive under different Congress regimes
 "Pranab as FM: Remembering how he managed controversies, even created some")
CM Bhupesh Baghel demands Rs 2,828 Cr from Centre as GST compensation
A meeting of State Finance Secretaries with the Union Finance Secretary and Secretary (Expenditure) is scheduled to be held on September 1, 2020, for clarifying issues, if any
 "CM Bhupesh Baghel demands Rs 2,828 Cr from Centre as GST compensation")
Japan to extend emergency loan worth Rs 3,500 cr for India to fight Covid19
Japanese ambassador Satoshi Suzuki, and CS Mohapatra, additional secretary in India's department of economic affairs exchanged notes regarding the provision of the yen loan
 "Japan to extend emergency loan worth Rs 3,500 cr for India to fight Covid19")
Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more
Here are the top business headlines on Tuesday
Three key SC decisions that could change telecom sweepstakes in the country
While the first two rulings on AGR dues could have a lasting impact on incumbent players, the third, on transfer of spectrum by banks could impact fund raising by the telecom sector as a whole
 "Three key SC decisions that could change telecom sweepstakes in the country")
Covid-19: 1,700 mid-size companies need debt restructuring, says CRISIL
The average debt size of these companies in CRISIL's rated portfolio, excluding outliers, is around Rs 25-30 crore
 "Covid-19: 1,700 mid-size companies need debt restructuring, says CRISIL")
RBI steps in with measures to boost demand for bonds, cool down yields
Says it is comfortable with a rising rupee, which helps bring down import-led inflation, adds that it remains "committed to ensuring comfortable liquidity and financing conditions in the economy"
 "RBI steps in with measures to boost demand for bonds, cool down yields")
Q1 GDP data: Employment-creating sectors bear brunt of slowdown
Construction sector fell a staggering 50.3 per cent, while manufacturing sector contracted by 39.3 per cent, at constant prices
 "Q1 GDP data: Employment-creating sectors bear brunt of slowdown")
Agriculture clocks growth rate of 3.4% in Q1 despite GDP contraction
GVA at current prices at 5.7%, down from 8.6% YoY
 "Agriculture clocks growth rate of 3.4% in Q1 despite GDP contraction")
Core sector output shrinks for fifth straight month in July, down 9.6%
Infra segment, refinery product impacted the most, even as contraction narrows in latest month
 "Core sector output shrinks for fifth straight month in July, down 9.6%")
At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates
With GDP for April-June also in, it can be calculated that fiscal deficit for Q1FY21 was 17.4% of nominal GDP. FM Sitharaman had pegged fiscal deficit for the year at 3.5% of GDP in 2020-21 Budget
 "At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates")
GST compensation row: State govts ask Centre to borrow and pay
The finance ministry on Saturday officially communicated the finer details of the two options to states to make up for the compensation shortfall by way of borrowings
 "GST compensation row: State govts ask Centre to borrow and pay")
RBI announces OMO for sale, purchase of govt securities worth Rs 10k cr
The RBI had announced, on August 25, simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each
 "RBI announces OMO for sale, purchase of govt securities worth Rs 10k cr")
Growth decline due to lockdown; V-shaped recovery in some sectors: CEA
He said indicators like rail freight traffic and electricity consumption are pointing to a recovery in economic activity
 "Growth decline due to lockdown; V-shaped recovery in some sectors: CEA")
Deep contraction in GDP on expected line, recovery to be gradual: Industry
India's GDP shrank steeply by 23.9 per cent in the April-June period as the coronavirus lockdowns battered an already slowing economy
 "Deep contraction in GDP on expected line, recovery to be gradual: Industry")
Telangana says it lost Rs 8,000 cr income; seeks full GST compensation
Telangana government asserted the Centre has no option but to pay full GST compensation to states and said the southern state lost about Rs 8,000 crore income during the past four months
 "Telangana says it lost Rs 8,000 cr income; seeks full GST compensation")
European Investment Bank to give Euro 650 million for Kanpur Metro
Agreement is step towards 'sustained relation' with European institute, says Indian government
 "European Investment Bank to give Euro 650 million for Kanpur Metro")
Q1 GDP data released today: Key things to note
This is the first instance of an economic contraction for the country in at least four decades, and also the first GDP decline since India began publishing quarterly numbers in 1996