NIRBHARTA STARTS AT HOME
Introduction The first instalment of the Rs. 20 Trillion (Lakh Crores) package of measures announced by the finance minister on 13th May 2020 is an important major step towards keeping the economy afloat (instead of revive). Not all of the Rs. 20 Lakh Crores constitute extra fiscal expenditure. They include extra expenditures, loans, loan guarantees and […]
HEED THE DIFFERENCE: STRATEGIES TO EXIT LOCKDOWN
Introduction The two imperatives, of extending the lockdown to reduce the rise in number of COVID-19 cases and relaxing lockdown to increase economic activity, might seem conflicting. But the key to resolving the impasse lies in recognising that different states have different needs and demands, and they should be given a greater say in decisions […]
WHICH SECTORS DEPEND ON IMPORTS, AND WHICH DO NOT?
What sectors heavily depend on imports Electrical equipment such as smartphones and computers are a key part of India’s import bill. Around 88% of the components used by the mobile handsets industry are imported from countries like China. Over 60 per cent of the country’s medical devices are imported as well. Other products heavily imported into the country […]
PROVIDE INCOME SUPPORT, RESTORE JOBS
Why in news? States such as Madhya Pradesh, Uttar Pradesh and Gujrat have scrapped Labour laws as a move to bring about reforms to attract new investors who are looking to exit from China. Employers’ associations have urged the central government to do away with most labour rights to address temporary labour shortages. The abrogation […]
RIDING ROUGHSHOD OVER STATE GOVERNMENTS
Introduction During the lockdowns the Centre has issued guidelines from time to time, ostensibly under the Disaster Management Act of 2005, containing varying restrictions on public activity and commerce which the States are expected to enforce. The Centre directs the State governments to scrupulously enforce every new set of guidelines, with the States ONLY being […]
RESPONDING TO COVID-19 AT THE GRASSROOTS
Introduction Line Mahatma Gandhi envisioned that a free India would rest on a foundation of gram panchayats, village republics that governed locally and epitomised Swaraj in practice. Locally relevant initiatives and issues The 73rd Constitutional Amendment mandates the constitution of panchayats at the district, intermediate and village levels as devolved institutions of self-government and provides […]
A NEW CONCERN: EARLY LOCUSTS
Why in news? On April 11-12, scientists at the Locust Warning Organisation (LWO) observed groups of desert locusts — the same destructive migratory pests currently devouring acres of maize, sorghum and wheat crops in East Africa. While locusts are seen in India as well, that is normally only during July-October and mostly as solitary insects […]
RAGHURAM RAJAN EXPLAINS: HOW BEST TO STIMULATE ECONOMY?
Introduction To fund a bigger public spending programme, the government can either ask the RBI to print more money (monetise the deficit) or it can issue new bonds to be subscribed by the banks (raise money through borrowing). The Former RBI governor Raghuram Rajan explained how the two paths work and why ‘monetisation’ is a […]
SLOWER GROWTH AND A TIGHTER FISCAL
Introduction Various institutions have assessed India’s growth prospects for 2020-21 ranging from 0.8% (Fitch) to 4.0% (Asian Development Bank). This wide range indicates the extent of uncertainty and tentative nature of these forecasts. The International Monetary Fund (IMF) has projected India’s growth at 1.9%, China’s at 1.2%, and the global growth at (-) 3.0%. The […]
WATER WISDOM DURING A PANDEMIC
Introduction The World Water Day on March 22 was observed more online than in-person this year, considering the Pandemic More than any previous year, there was a recognition of the importance of water in handwashing and personal hygiene practices. Theme of Water Day 2020: “Water and Climate Change” Water is the primary medium through which climate change […]