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RBI says lack of domestic demand affecting 'animal spirits' of economy

-The Hindu Reviving the consumption demand and private investment has assumed the highest priority in 2019-20, notes central bank report. Mumbai: The Reserve Bank of India (RBI), in its annual report for 2018-19, has said the lack of domestic demand is holding back the animal spirits in the economy and emphasised the need to revive consumption demand and private investment during 2019-20. “What ails the animal spirits? At the core is the...

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The Indian economy is blaring warnings, but the Modi government remains in denial -Jayati Ghosh

-Scroll.in/ qz.com While the government was busy celebrating cosmetic measures like ‘Ease of Doing Business’ ranking, the real economy tanked. Suddenly, it seems like everything is shrinking in India: our capacity for tolerance and diversity, the space for democratic expression and dissent – and now, economic growth. The warning signs have reached a point where they cannot be ignored any longer and more people, including prominent business leaders, are speaking out. Yet, at...

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Prudent prescription: on MSME sector

-The Hindu An RBI panel’s suggestions on the MSME sector cut to the heart of crucial issues The micro, small and medium enterprises (MSME) sector in India is not only a key engine of growth, contributing more than 28% of the GDP and about 45% to manufacturing output. It is also a true reflection of economics where people really matter. Providing employment to about 111 million people, the sector’s health is crucial...

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Environment minister's job to protect environment, not clear projects: Jairam Ramesh -Krishn Kaushik

-The Indian Express Ramesh, who had the independent charge of the ministry between 2009 and 2011, said the “Environment Minister must stand up and say that climate change is more important than Ease of Doing Business”. The job of the Environment Minister is to protect the environment and not look at it from the perspective of Ease of Doing Business, senior Congress leader Jairam Ramesh said during a discussion on climate...

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Why an industrial policy is crucial -Santosh Mehrotra

-The Hindu No major country has managed to reduce poverty or sustain economic growth without a robust manufacturing sector The contribution of manufacturing to GDP in 2017 was only about 16%, a stagnation since the economic reforms began in 1991. The contrast with the major Asian economies is significant. For example, Malaysia roughly tripled its share of manufacturing in GDP to 24%, while Thailand’s share increased from 13% to 33% (1960-2014). In...

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