Economy

However, if the MPC was wrong about its decision, this could severely slow down the revival of the economy, causing more hardship. Let me expand on the case 3 scenario: suppose in the future, as things go back to normal, the weight on food and beverages decreases beyond normal (especially if people had engaged in hoarding behaviour during the lockdown). Moreover, given that the pandemic has disturbed supply chain distributions, the inflation is predominantly due to these supply constraints (cost-push) which should start dissipating now with the easing of the lockdown restrictions. If the above predictions are correct, then inflation may well be within the 4-6 % range in the next few months. Then, perhaps a rate cut would have been beneficial because in any real sense it wasn’t too high to begin with! … [Read more...] about How is inflation faring in the lockdown, why should it matter and other annoying questions answered

What's your assessment of the LTC scheme and the festival bonuses announced? Do you think it will be able to boost demand and to what extent?We anticipate that the LTC and festival advance schemes will result in a temporary boost to consumer sentiment and economic activity. A section of the eligible employees may opt for this scheme, which would result in a sharper pick up in festive season sales.However, this would only end up upfronting consumption, and the temporary uptick would subsequently fizzle out in our view. … [Read more...] about Interview | India FY21 fiscal deficit expected to be around 7.4% of GDP: ICRA economist Aditi Nayar

While many other changes can also help reduce emissions—such as building denser neighborhoods with good bike lanes so people no longer feel the need to drive to run errands or commute to work—the authors wanted to look at what was possible if lifestyles don’t change, but technologies do. “People don’t have to give up their cars or their SUVs or the pickup trucks, and people don’t have to give up their McMansions,” he says. Making the changes would help eliminate a large chunk of the country’s carbon footprint: 37% of U.S. emissions come from individual households. … [Read more...] about Here’s how much it would cost to move every home in the U.S. to zero-carbon energy

She charged the government for labelling anti-BJP protests as anti-India conspiracies by giving examples of protests against the CAA and proposed National Register of Citizens (NRC). She further said the Modi government “chose to vilify it and made it a divisive issue in the Delhi elections.” … [Read more...] about ‘Democracy being hollowed out’, Sonia Gandhi attacks PM Modi, Centre

Biden, plotting an ambitious presidency that would begin amid twin health and economic crises, is leaning on veteran advisers with high-level governmental experience rather than outsiders and ideological rivals to help guide him on subjects including the coronavirus pandemic and the country’s diminished standing in the world, a report in The New York Times said. … [Read more...] about US Election 2020: Two prominent Indian-Americans among Joe Biden’s core advisers