India’s GDP likely to contract by 6.4% in FY21, says Care Ratings

wayne


on Thursday revised India’s forecast for the current financial year to (-) 6.4 per cent as economic activity continues to be under restriction due to the on account of the Covid-19 pandemic.


The rating agency, in May, had projected a decline in of 1.5-1.6 per cent in FY21.



It said given that the nation is into a for July too with several restrictions on resumption of services in particular as well as movement of people, the cutoff date for normalcy will spread into the latter part of the third quarter and more likely to the fourth quarter.


“Under these assumptions our forecast for is now (-) 6.4 per cent for FY21 with GVA (de)growth estimated to be around (-) 6.1 per cent, said in a report.


The sharper fall in real GDP also means that the nominal GDP for the year will also decline assuming inflation of 5 per cent which in turn will affect the projected fiscal deficit number of the central government which will be in the region of 8 per cent for

Govt committed to reforms, make tax structure simple: FM on GST day

wayne


Finance minister on Wednesday said the government is committed to undertaking reforms to make the tax administration simple for the businesses, particularly the micro, small and medium enterprises (MSMEs).


In her message to taxmen on the fourth GST day, she said more efforts are needed to ease tax compliances for the businesses, while lauding the measures such as filing nil tax returns through SMS.



Sitharaman asked the tax administration, particularly that related to the (GST), to address the issues faced by India Inc. to enable them to compete on a global scale.


“We must foresee the issues faced by our business community and proactively address the same to enable them to compete on a global scale,” she said.


The finance minister said the tax administration, especially the GST one, will have a large role to play to meet the goal of ‘Atmanirbhar Bharat’, as set by prime minister Narendra Modi.


She said the much-needed economic growth could be ensured in the near future only through this proactivity.


“We must strive to make the tax administration so simple

States continue to tap cheap rates to borrow more than originally planned

wayne


In a marked departure from the original plan, states took advantage of cheap market rates and borrowed extra. Seven state governments in line to borrow Rs 9,000 crore, ended up borrowing Rs 12,000 crore from the markets.


The spread between the equivalent maturity government bonds and state development loans was 55-65 basis points (bps). This is a considerable spread contraction when compared with nearly 150-bps spread over government securities the states had to pay in the first auction of the financial year.



On Tuesday, Andhra Pradesh, Gujarat, Kerala, Maharashtra, Rajasthan, Tamil Nadu, and West Bengal borrowed money. Except Andhra Pradesh and West Bengal, every other state borrowed extra.


Gujarat raised Rs 1,500 crore instead of Rs 1,000 crore for a 10-year bond at 6.54 per cent.


ALSO READ: Decline in tax revenue collection narrows to 37% in May as economy picks up



Kerala raised Rs 1,000 crore, against Rs 500 crore planned at 5.53 per cent for a five-year bond.


Maharashtra borrowed Rs 2,000 crore, against Rs 1,000 crore planned at 4.63 per cent for a three-year bond.


Rajasthan raised a

G20 nations imposed 59 import-restrictive measures in 7 months: WTO

wayne


The G20 countries imposed as many as 59 trade-restrictive measures such asimport bans and stricter customs procedures during mid-October 2019 and mid-May 2020, according to a WTO report.


G20 members include India, Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, Russia, the UK, and the US, among others.



“During the mid-October 2019 to mid-May 2020 review period, G20 economies implemented 154 new trade and trade-related measures, 95 of them import-facilitating and 59 import-restrictive. Of these measures, 93 (about 60 per cent) were linked to the Covid-19 pandemic,” it said.


Tariff increases, import bans, stricter customs procedures, export duties and other such measures introduced during the review period affected 2.8 per cent of G20 trade, it said.


Commenting on the report, WTO Director-General Roberto Azevdo said: “Historically high levels of trade-restrictive measures remain a source of concern, all the more so at a time when international trade and investment will be critical to rebuild economies, businesses and livelihoods around the world”.


He said that there are signs that trade-restrictive measures adopted in the early stages of the pandemic are starting to be rolled back.

Govt order asks OMCs to stock up LPG supply in Kashmir, sparks speculations

wayne


A government order asking to stock up two months’ supply of LPG cylinders in Valley has sparked speculations, especially in the wake of the LAC face-off, with NC leader questioning the need for such a move.


According to the June 27 order issued by the director of the Food, Civil Supplies and Consumer Affairs Department in Kashmir, an adviser to Jammu and Lt Governor G C Murmu has passed directions in a meeting on June 23 “to ensure sufficient stocks of LPG in the valley as the supply of the same gets affected due to closure of the National Highway on account of frequent landslides”.



Describing the order as a “matter most urgent”, the director asked the to make adequate stocks of LPG which can last up to two months both at bottling plants as well as godowns.


Though similar exercises are common in winter months in view of frequent disruptions on the Srinagar-Jammu National Highway, such huge stocking does not usually take place in summers.


Former Jammu and chief minister also cited another

Digital economy, adoption of tech will help achieve $5-trn economy: Goyal

wayne


Adoption of and the would play a vital role in transforming business enterprises in the future and achieving the target of $5 trillion economy, Commerce and Industry Minister said on Saturday.


He said this while addressing the 49th governing council meeting of National Productivity Council (NPC), an autonomous body under the Department for Promotion of Industry & Internal Trade (DPIIT).



He also stressed the role of productivity in the transformation of any organisation.



The minister also suggested NPC to work closely with all the stakeholders and emphasised on adopting the best practices from around the world.


Some of the suggestions made in the meeting include the formulation of specific action plans by NPC especially in agriculture and logistics sectors, identification of champion sectors which has the potential to drive the economy, adoption of to increase productivity and delivering cost-effective solutions for the marginalised sector.


Interlinking of academia and industry for the creation of a highly skilled labour force, financing of specific products to support Micro, Small,and Medium Enterprises (MSMEs) and increase their productivity, and national audit on security

Subscribe Now