RBI may not cut rates despite drop in retail inflation: Motilal Oswal


The (RBI) is unlikely to further ease the interest rates in the next meeting of its Monetary Policy Committee even though retail declined in December 2020, a report by Motilal Oswal Institutional Equities said.

The ‘Ecoscope’ report noted that the central bank is likely to continue with its calibrated approach towards the management of domestic liquidity.

“It is for the first time since the COVID-19 pandemic began that the CPI has come within the RBI’s target range of 2-6%. What remains to be seen is if the downward trajectory in food prices continues during CY21. In any case, we do not expect any further monetary easing and the RBI is likely to continue to manage domestic liquidity in a calibrated manner,” it said.

The Consumer Price Index-based retail inflation for December came in at a 14-month low of 4.59 per cent, down from 6.93 per cent in November, due to lower food inflation, showed official data released on Tuesday.

The Motilal Oswal report noted that the retail inflation data for last month was exactly in line with its expectation, but

Settle litigation for revenues, avoid new taxes in Budget: SBI report


Ahead of the Union Budget, economists on Tuesday pitched for avoiding new taxes and urged the government to mount “honest attempts” to settle past litigations to raise resources instead.

Given the pandemic and the resultant lessons, an additional expenditure of over Rs 2.5 lakh crore will have to be provided on the healthcare front, the economists at the country’s largest lender said, adding the government spent only 1 per cent of the GDP under this head in FY21.

“One suggestion. There must not be any new taxes in the Budget. Let us have a tax holiday budget, with carefully crafted policies for immediate fiscal lubrication.

“A game changer in the budget could be an honest attempt by the Government to settle the cases under tax litigation once and for all,” they said in a note, adding that as of data available till FY19, the total amount under dispute was around Rs 9.5 lakh crore.

The amount under litigation includes Rs 4.05 lakh crore in corporation tax, Rs 3.97 lakh crore stuck in income tax cases and another Rs 1.54 lakh crore on account of commodities and

Need for more indigenisation of India’s oil and gas sector: Petroleum secy


Petroleum Secretary Tarun Kapoor believes that a large number of products, which are used in the oil and gas sector, and are imported at present, should be manufactured in India.

“We are looking at a large number of products which are currently being imported. We want them to be made in India. We have asked Engineers India Ltd (EIL) to work on vendor development. The government sector alone in the oil industry has a capital expenditure of over Rs 1 trillion a year, there is operating expenditure also and the private sector is spending too. In all around Rs 1.5 trillion to Rs 2 trillion is spent by this sector annually,” Kapoor said while addressing the Energy Startup Summit 2021 organised by Tata Motors and Repos Energy.

Kapoor gave the example of gas meters and said that presently there is not enough capacity in the country to manufacture them.

Speaking at the event earlier, Chief Executive Officer of NITI Aayog, Amitabh Kant, said, “There is focus on new technologies like solid state batteries and direct solar wafers which are the future. The world is on the cusp of a mobility revolution which is

Currency in circulation rises Rs 3.23 trillion in first nine months of FY21


The (CiC) grew by around 13 per cent in the first nine months of the current fiscal as people preferred holding on to cash as a precautionary measure amid the uncertainty caused due to the COVID-19 pandemic.

CiC grew by Rs 3,23,003 crore, or 13.2 per cent, to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020, according to recent data released by the Reserve Bank of India (RBI).

In the April-December period of FY2020, it had grown by nearly 6 per cent.

According to Care Ratings Chief Economist Madan Sabnavis, the growth in so far in the current fiscal has been high as people were accumulating more cash to meet any exigency during the lockdown.

“Whenever there is a crisis-like situation, there is a tendency for households to latch on to cash. That is the reason there has been an increase in demand for cash. What you see is nothing else but a precautionary motive overwhelming everything,” Sabnavis said.

The RBI in its annual report for 2019-20, released in August

Remote working to boost hybrid workforce, gig economy in 2021: Study


The success of work-from-home in 2020 following lockdown due to COVID-19 will boost the gig economy and hybrid workforce this year, according to a study.

In 2020, job losses across the experience level and the influx of fresh entrants (graduates) in the job market boosted the gig economy. This will promote diversity, inclusion and business pressure for cost optimisation and will give gig economy a major push, even though external hiring will be limited this year, according to the 2021 Talent Technology Outlook study by job site SCIKEY.

Gig economy is a free market system in which temporary positions are common and organisations hire independent workers for short-term commitments.

Tailoring one’s own working hours will also lure more women in the industry and it might even see more women in the leadership roles in the future, it added.

The study is an analysis of inputs from 100 plus C-suite and human capital leaders representing over 100 organisations through surveys, social media inputs, interviews and panel discussions.

As per the survey, 20 per cent leaders said the recruitment will be done through external vendors and HR

Indian economy to rebound with 8.9% growth in fiscal 2022: IHS Markit


is likely to rebound with an 8.9 per cent growth in the fiscal year beginning April 2021 after economic activity showed significant improvement in the last quarter, IHS Markit said on Friday.

The National Statistical Organisation (NSO) on Thursday predicted that the economy will contract 7.7 per cent in the current financial year ending in March, the worst performance in four decades.

“The suffered a severe recession in 2020,” IHS Markit said in a note. “The worst contraction occurred during the period from March until August, with the economy having shown a strong rebound in economic activity since September.”

The contracted by a record 23.9 per cent in the April-June quarter following a national lockdown to prevent the spread of the coronavirus. The contraction came down to 7.5 per cent in the September quarter.

“During the fourth quarter of 2020, India’s industrial production and consumption expenditure have shown a rebound.

“October data showed that industrial production grew by 3.6 per cent year-on-year compared with a steep contraction of -55.5 per cent in April 2020,” IHS said.

Stating that there has been a marked

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