Finance Minister Nirmala Sitharaman said the International Monetary Fund's debt restructuring programme should aim at helping the countries overcome the fiscal stress caused by the coronavirus pandemic.

"...it would be important to take into consideration the circumstances and concerns of both creditors and debtors and that in the process of debt restructuring, care must be taken to not saddle the debtor countries with overly burdensome conditionalities," she said while addressing the G20 Finance Ministers and Central Bank Governors Meeting through video conferencing.

A finance ministry statement said that one of the key outcomes of the G20 Action Plan has been the Debt Service Suspension Initiative (DSSI) which provides time bound suspension of debt service payments for the low-income debtor countries that request forbearance. The initiative came into effect in April was initially agreed till end of 2020.

During this meeting, in light of the continued liquidity pressures, it said the G20 finance ministers and central bank governors agreed to extend the DSSI by six months, and to examine by the time of the 2021 IMF/World Bank Group Spring Meetings if the economic and financial situation requires a further extension of the initiative.

To receive DSSI relief, countries are required to apply for an arrangement with the International Monetary Fund (IMF) which could be either a regular programme or a shorter-term emergency facility. Talking about addressing the debt vulnerabilities of low income countries, Sitharaman observed that in a longer term, a more structural treatment of debt is required.

She emphasised that this process should primarily be guided by the objective of helping such countries overcome the fiscal stress caused by the pandemic. Addressing her counterparts, Sitharaman highlighted the need to balance the health and economic objectives in the recovery plans.

Besides, the finance minister also spoke about the need to consider heterogeneity of policy responses among member countries, international spillovers from domestic policy actions and reforms required in the global regulatory regimes, particularly with respect to the procyclicality of credit rating downgrades.

She added that updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to COVID-19.

Finance Minister Nirmala Sitharaman said the International Monetary Fund's debt restructuring programme should aim at helping the countries overcome the fiscal stress caused by the coronavirus pandemic.

Finance Minister Nirmala Sitharaman said the International Monetary Fund's debt restructuring programme should aim at helping the countries overcome the fiscal stress caused by the coronavirus pandemic. "...it would be important to take into consideration the circumstances and concerns of both creditors and debtors and that in the process of debt restructuring, care must be taken to not saddle the debtor countries with overly burdensome conditionalities," she said while addressing the G20 Finance Ministers and Central Bank Governors Meeting through video conferencing. A finance ministry statement said that one of the key outcomes of the G20 Action Plan has been the Debt Service Suspension Initiative (DSSI) which provides time bound suspension of debt service payments for the low-income debtor countries that request forbearance. The initiative came into effect in April was initially agreed till end of 2020. During this meeting, in light of the continued liquidity pressures, it said the G20 finance ministers and central bank governors agreed to extend the DSSI by six months, and to examine by the time of the 2021 IMF/World Bank Group Spring Meetings if the economic and financial situation requires a further extension of the initiative. To receive DSSI relief, countries are required to apply for an arrangement with the International Monetary Fund (IMF) which could be either a regular programme or a shorter-term emergency facility. Talking about addressing the debt vulnerabilities of low income countries, Sitharaman observed that in a longer term, a more structural treatment of debt is required. She emphasised that this process should primarily be guided by the objective of helping such countries overcome the fiscal stress caused by the pandemic. Addressing her counterparts, Sitharaman highlighted the need to balance the health and economic objectives in the recovery plans. Besides, the finance minister also spoke about the need to consider heterogeneity of policy responses among member countries, international spillovers from domestic policy actions and reforms required in the global regulatory regimes, particularly with respect to the procyclicality of credit rating downgrades. She added that updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to COVID-19.

IMF's debt restructuring should help countries overcome fiscal stress: Nirmala Sitharaman

India on Monday announced steps to stimulate consumer demand, including advance payment of a part of the wages of federal government employees during the festival season and more capital spending as it tries to bolster the pandemic-hit economy.

India announces economic stimulus to boost demand by $10 billion

The World Bank has said India’s GDP is expected to further contract by 9.6% this fiscal as a reflection of the economic slump the country has suffered due to the national lockdown induced by the coronavirus pandemic.

World Bank: India's GDP to contract in FY21

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7.

On September 28, the RBI had postponed the meeting of the MPC, which must have a quorum of four, as the appointment of independent members was delayed. "The next meeting of the Monetary Policy Committee (MPC) is scheduled during October 7 to October 9, 2020," it said in a statement.

The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC.

The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia.

They were appointed on the panel for four years on September 29, 2016.

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7.

With the government appointing three members on the Monetary Policy Committee (MPC), the Reserve Bank on Tuesday said the next meeting of the rate setting panel will be held for three days beginning October 7. On September 28, the RBI had postponed the meeting of the MPC, which must have a quorum of four, as the appointment of independent members was delayed. "The next meeting of the Monetary Policy Committee (MPC) is scheduled during October 7 to October 9, 2020," it said in a statement. The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC. The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia. They were appointed on the panel for four years on September 29, 2016.

RBI's next monetary policy panel meeting from October 7-9

India's factory activity expanded at its fastest pace in over eight years in September as a relaxation in coronavirus lockdown restrictions drove a surge in demand and output, a private survey showed on Thursday, though layoffs continued.

Signs of recovery are welcome news for Asia's third-largest economy, which has registered a coronavirus recovery rate at a whopping high of 83.53 per cent.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/indias-recovery-rate-improves-as-daily-cases-keep-rising-rapidly-331650" hreflang="en">India’s recovery rate improves as daily cases keep rising rapidly</a>

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 56.8 in September from 52.0 in August, above the 50-level separating growth from contraction for a second straight month. It was the highest reading since January 2012.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/sensex-jumps-450-points-nifty-above-11350-as-bank-331620" hreflang="en">Sensex jumps 450 points, Nifty above 11,350 as bank</a>

"The&nbsp;Indian manufacturing industry continued to move in the right direction, with PMI data for September highlighting many positives. Due to loosened COVID-19 restrictions, factories went full steam ahead for production, supported by a surge in new work," noted Pollyanna De Lima, economics associate director at IHS Markit.

"While uncertainty about the COVID-19 pandemic remains, producers can at least for now enjoy the recovery."

A sub-index tracking output hit its highest since December 2007 and new orders expanded at the sharpest pace since February 2012, helped by both domestic and foreign demand which grew for the first time in seven months.

Although input prices increased at a slower rate in September, manufacturers raised their selling prices after having cut them since March to secure sales.

Despite the significant rebound, firms cut staff for the sixth month in a row. Coronavirus-related distortions have already made millions jobless.

The sector is unlikely to get much support from the Reserve Bank of&nbsp;India&nbsp;over the coming months as persistently high inflation is expected to force the RBI to remain on the sidelines.

The RBI early this week postponed a policy committee meeting that was slated for Sept.29-Oct. 1 and said it would be rescheduled. It did not give a reason for the move.

Still, business optimism about the coming 12 months hit its highest since August 2016.

India's factory activity expanded at its fastest pace in over eight years in September as a relaxation in coronavirus lockdown restrictions drove a surge in demand and output, a private survey showed on Thursday, though layoffs continued.

India's factory activity expanded at its fastest pace in over eight years in September as a relaxation in coronavirus lockdown restrictions drove a surge in demand and output, a private survey showed on Thursday, though layoffs continued. Signs of recovery are welcome news for Asia's third-largest economy, which has registered a coronavirus recovery rate at a whopping high of 83.53 per cent. Also read: India’s recovery rate improves as daily cases keep rising rapidly The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 56.8 in September from 52.0 in August, above the 50-level separating growth from contraction for a second straight month. It was the highest reading since January 2012. Also read: Sensex jumps 450 points, Nifty above 11,350 as bank "The Indian manufacturing industry continued to move in the right direction, with PMI data for September highlighting many positives. Due to loosened COVID-19 restrictions, factories went full steam ahead for production, supported by a surge in new work," noted Pollyanna De Lima, economics associate director at IHS Markit. "While uncertainty about the COVID-19 pandemic remains, producers can at least for now enjoy the recovery." A sub-index tracking output hit its highest since December 2007 and new orders expanded at the sharpest pace since February 2012, helped by both domestic and foreign demand which grew for the first time in seven months. Although input prices increased at a slower rate in September, manufacturers raised their selling prices after having cut them since March to secure sales. Despite the significant rebound, firms cut staff for the sixth month in a row. Coronavirus-related distortions have already made millions jobless. The sector is unlikely to get much support from the Reserve Bank of India over the coming months as persistently high inflation is expected to force the RBI to remain on the sidelines. The RBI early this week postponed a policy committee meeting that was slated for Sept.29-Oct. 1 and said it would be rescheduled. It did not give a reason for the move. Still, business optimism about the coming 12 months hit its highest since August 2016.

India's September factory activity grew at fastest pace in over eight years

According to Fitch Arm, India’s economy is projected to contract 11.8% on the year in the current fiscal year beginning from April.

Indian economy projected to contract 11.8% in FY 21: Fitch Arm

India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

The GDP contraction in the world's fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back, according to official data released on Monday.

This is the sharpest contraction since quarterly figures started being published in 1996 and worse than what was expected by most analysts.

What is the reason behind this kind of economic carnage?

Most&nbsp;of India and the world went into a severe lockdown in the April to June period. Most economic and business activity came to a halt.

In May — India had announced a 266 billion dollars stimulus package. Free food to the weak and poor. Jobs for migrant workers. Credit guarantees on bank loans and, relief to small businesses.

But, that has not helped cushion the fall. The economy is still crawling out of the lockdown.

Finance minister — Nirmala Sitharaman had seen this coming. Just a few days ago — she said and I quote.

You are facing an ‘act of god’ which might even result in a contraction of the economy. So, here it is — Indian economy's worst contraction on record.

However, it was not just India’s worst-ever quarter. Some of the world's largest economies have not been able to bear the brunt of the pandemic. In the April to June period the US economy contracted by 32.9 percent.

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The United Kingdom by 20.4 per cent, Japan by 27.8 percent.&nbsp;

Road ahead for the Indian economy

The chief economic advisor — Krishnamurthy Subramanian — expects a recovery once India comes completely out of lockdown.

But, he also expects the uncertainty to remain until the pandemic is completely brought under control.

India has finally lifted inter-state movement of vehicles. As goods and services move across the country freely — the Indian economy should begin its upward climb.&nbsp;

But this will be a tough climb. India’s woes won't end in a hurry. The economy is expected to contract by 6 percent in 2020.

India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. The GDP contraction in the world's fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back, according to official data released on Monday. This is the sharpest contraction since quarterly figures started being published in 1996 and worse than what was expected by most analysts. What is the reason behind this kind of economic carnage? Most of India and the world went into a severe lockdown in the April to June period. Most economic and business activity came to a halt. In May — India had announced a 266 billion dollars stimulus package. Free food to the weak and poor. Jobs for migrant workers. Credit guarantees on bank loans and, relief to small businesses. But, that has not helped cushion the fall. The economy is still crawling out of the lockdown. Finance minister — Nirmala Sitharaman had seen this coming. Just a few days ago — she said and I quote. You are facing an ‘act of god’ which might even result in a contraction of the economy. So, here it is — Indian economy's worst contraction on record. However, it was not just India’s worst-ever quarter. Some of the world's largest economies have not been able to bear the brunt of the pandemic. In the April to June period the US economy contracted by 32.9 percent. × The United Kingdom by 20.4 per cent, Japan by 27.8 percent. Road ahead for the Indian economy The chief economic advisor — Krishnamurthy Subramanian — expects a recovery once India comes completely out of lockdown. But, he also expects the uncertainty to remain until the pandemic is completely brought under control. India has finally lifted inter-state movement of vehicles. As goods and services move across the country freely — the Indian economy should begin its upward climb. But this will be a tough climb. India’s woes won't end in a hurry. The economy is expected to contract by 6 percent in 2020.

India’s GDP growth suffers worst-ever crash: Road ahead for the Indian economy

For the first time in 40 years the GDP of India registered a negative growth. India’s economic growth slips to -23.9% in the first quarter (April-June) of 2020-21.

The first economic contraction since 1980, and maiden quarterly GDP fall on record, follows limited activity during the June quarter amid lockdowns to control the spread of the coronavirus pandemic.

The first quarter saw an unprecedented closure of shops, markets, and industries, which forced the wheels of the economy to a standstill. 
 
Except for agriculture, almost all the corners of the economy were severely hit. Though the government had announced a series of reforms and schemes to provide a fillip to the economy, lockdown restrictions and increasing cases of coronavirus kept the economic activity grounded in the first quarter. 
 
The gross domestic product (GDP) had expanded by 5.2 per cent in the corresponding April-June period of 2019-20, according to data released by the National Statistical Office (NSO). 
 
The government had imposed a nationwide lockdown on March 25 to curb the spread of coronavirus infections. 
 
The Centre began easing the lockdown for certain economic activities from April 20 onwards. 
 
Most rating agencies had projected contraction in India's GDP for the first quarter of 2020-21. 
 
China's economy grew by 3.2 per cent in April-June after recording a decline of 6.8 per cent in January-March 2020.

(With inputs from Reuters)

For the first time in 40 years the GDP of India registered a negative growth. India’s economic growth slips to -23.9% in the first quarter (April-June) of 2020-21.

For the first time in 40 years the GDP of India registered a negative growth. India’s economic growth slips to -23.9% in the first quarter (April-June) of 2020-21. The first economic contraction since 1980, and maiden quarterly GDP fall on record, follows limited activity during the June quarter amid lockdowns to control the spread of the coronavirus pandemic. The first quarter saw an unprecedented closure of shops, markets, and industries, which forced the wheels of the economy to a standstill. Except for agriculture, almost all the corners of the economy were severely hit. Though the government had announced a series of reforms and schemes to provide a fillip to the economy, lockdown restrictions and increasing cases of coronavirus kept the economic activity grounded in the first quarter. The gross domestic product (GDP) had expanded by 5.2 per cent in the corresponding April-June period of 2019-20, according to data released by the National Statistical Office (NSO). The government had imposed a nationwide lockdown on March 25 to curb the spread of coronavirus infections. The Centre began easing the lockdown for certain economic activities from April 20 onwards. Most rating agencies had projected contraction in India's GDP for the first quarter of 2020-21. China's economy grew by 3.2 per cent in April-June after recording a decline of 6.8 per cent in January-March 2020. (With inputs from Reuters)

GDP Q1 Data: India’s economic growth slips to -23.9%, first contraction in 40 years

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday.

June-quarter GDP data set to be released at the end of August is expected to show a contraction of 20 per cent, according to a Reuters poll.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/indian-public-sector-banks-face-fresh-capital-shortages-will-need-rs-21-lakh-crore-moodys-322124" hreflang="en">Indian public sector banks face fresh capital shortages, will need Rs 2.1 lakh crore: Moody's</a>

"An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-COVID-19 momentum," the Reserve Bank of India said in its annual report.

"Going forward, government consumption is expected to continue pandemic-proofing of demand."

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Private consumption will come back gradually with non-discretionary spending leading the way, until a durable increase in disposable incomes enables discretionary spending to catch up, the bank added.

"The upticks that became visible in May and June after the lockdown was eased in several parts of the country appear to have lost strength in July and August," the bank said.

This weakening was mainly due to reimposition or tougher imposition of lockdowns, suggesting that contraction in economic activity was likely to be prolonged into the second quarter, it added.

Key downside risks to growth are wider pandemic spread, a deviation of seasonal monsoon rains from the predicted normal volume and global financial market volatility, the bank said.

It called for the banking sector to be freed of a risk aversion that is impeding the flow of credit to productive sectors and undermining banks' role in the economy.

Despite a reduction in bad loans in March 2020, the banking system's resilience will be tested by the economic fallout of the pandemic, since measures to alleviate it had masked the consequent build-up of stress in the system, the bank said.

"Against this backdrop, a recapitalisation plan for public and private sector banks assumes critical importance," it added.

In a separate report, the RBI had warned that banks' bad loans could nearly double by the end of this fiscal year, while the capital adequacy ratio could fall to 11.8 per cent&nbsp;in a severely stressed situation.

The RBI's balance sheet increased 30.02 per cent&nbsp;by June 30, it added.

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday.

Indian government consumption will support current economic demand while private consumption is likely to lead a recovery that takes hold after the coronavirus pandemic eases, the central bank said on Tuesday. June-quarter GDP data set to be released at the end of August is expected to show a contraction of 20 per cent, according to a Reuters poll. Also read: Indian public sector banks face fresh capital shortages, will need Rs 2.1 lakh crore: Moody's "An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe, and it will take quite some time to mend and regain the pre-COVID-19 momentum," the Reserve Bank of India said in its annual report. "Going forward, government consumption is expected to continue pandemic-proofing of demand." Also read: India urges automakers to cut royalties to foreign parent companies: Report Private consumption will come back gradually with non-discretionary spending leading the way, until a durable increase in disposable incomes enables discretionary spending to catch up, the bank added. "The upticks that became visible in May and June after the lockdown was eased in several parts of the country appear to have lost strength in July and August," the bank said. This weakening was mainly due to reimposition or tougher imposition of lockdowns, suggesting that contraction in economic activity was likely to be prolonged into the second quarter, it added. Key downside risks to growth are wider pandemic spread, a deviation of seasonal monsoon rains from the predicted normal volume and global financial market volatility, the bank said. It called for the banking sector to be freed of a risk aversion that is impeding the flow of credit to productive sectors and undermining banks' role in the economy. Despite a reduction in bad loans in March 2020, the banking system's resilience will be tested by the economic fallout of the pandemic, since measures to alleviate it had masked the consequent build-up of stress in the system, the bank said. "Against this backdrop, a recapitalisation plan for public and private sector banks assumes critical importance," it added. In a separate report, the RBI had warned that banks' bad loans could nearly double by the end of this fiscal year, while the capital adequacy ratio could fall to 11.8 per cent in a severely stressed situation. The RBI's balance sheet increased 30.02 per cent by June 30, it added.

Indian government consumption key to demand growth in economy, says RBI

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday.

“It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that,” Rajan told the Global Markets Forum.

<a href="https://www.wionews.com/india-news/with-spike-of-56282-cases-indias-covid-19-tally-reaches-1964537-318518">Also read|&nbsp;With spike of 56,282 cases, India's COVID-19 tally reaches 19,64,537</a>

India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small, and medium-size businesses, but actual cash outgo from the government’s measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody’s cut India’s rating and outlook in early June followed closely by a change in outlook from Fitch.

<a href="https://www.wionews.com/india-news/india-china-standoff-indian-security-officials-seek-four-to-six-dedicated-satellites-along-lac-to-keep-an-eye-on-china-report-318634">Also read|&nbsp;India-China standoff: Indian security officials seek four to six dedicated satellites along LAC to keep an eye on China: Report</a>

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year but decided to hold rates steady earlier in the day against market expectations as inflation pressures have risen.

“The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government’s court to do more,” Rajan said.

He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.

“And I think that’s where it has to focus its attentions, because resources, as you well know, are limited in India today.”

To ease debt strains on companies and lenders, the RBI on Thursday said it would allow restructuring of corporate loans by banks, a move that was widely awaited by the industry.

Governor Shaktikanta Das said there was room to cut rates further but the central bank will ensure inflation stays within its target range. Most analysts expect it to reduce rates once inflation is brought under control.

Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.

“What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus,” Rajan said.

“And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy”.

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday.

India’s policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India governor Raghuram Rajan said on Thursday. “It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that,” Rajan told the Global Markets Forum. Also read| With spike of 56,282 cases, India's COVID-19 tally reaches 19,64,537 India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery. The government has announced several initiatives to help the poor and small, and medium-size businesses, but actual cash outgo from the government’s measures has been estimated at just about 1% of GDP. Several attribute the fiscal prudence to fear of a downgrade after Moody’s cut India’s rating and outlook in early June followed closely by a change in outlook from Fitch. Also read| India-China standoff: Indian security officials seek four to six dedicated satellites along LAC to keep an eye on China: Report The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year but decided to hold rates steady earlier in the day against market expectations as inflation pressures have risen. “The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government’s court to do more,” Rajan said. He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones. “And I think that’s where it has to focus its attentions, because resources, as you well know, are limited in India today.” To ease debt strains on companies and lenders, the RBI on Thursday said it would allow restructuring of corporate loans by banks, a move that was widely awaited by the industry. Governor Shaktikanta Das said there was room to cut rates further but the central bank will ensure inflation stays within its target range. Most analysts expect it to reduce rates once inflation is brought under control. Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked. “What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus,” Rajan said. “And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy”.

India should focus on protecting economy, says ex-RBI governor

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive.

The Nifty, which clocked a 7.5 per cent gain last month, fell 0.64 per cent to 11,002.65 by 0355 GMT, while the Sensex was 0.73 per cent lower at 37,335.25.

The Nifty banking index fell 1.31 per cent. The nation`s top private sector lender, HDFC Bank Ltd, was the biggest drag on the Nifty 50, with a 1.6 per cent decline.

<a href="https://www.wionews.com/business-economy/sensex-slips-129-points-nifty-ends-at-11073-317286">Also read: Sensex slips 129 points, Nifty ends at 11,073</a>

India`s tally of COVID-19 cases crossed 1.75 million on Sunday, after logging a record surge a day earlier, with the death toll at 37,364. The country has the world`s third highest caseload after the United States and Brazil.

Home Minister Amit Shah, a close aide to Prime Minister Narendra Modi, tested positive for COVID-19 on Sunday, becoming the senior-most politician in the country to catch the virus.

The chief minister of Karnataka, home to the tech hub of Bengaluru, also said he tested positive for COVID-19. 
Other Asian share markets were mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan.

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive.

Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive. The Nifty, which clocked a 7.5 per cent gain last month, fell 0.64 per cent to 11,002.65 by 0355 GMT, while the Sensex was 0.73 per cent lower at 37,335.25. The Nifty banking index fell 1.31 per cent. The nation`s top private sector lender, HDFC Bank Ltd, was the biggest drag on the Nifty 50, with a 1.6 per cent decline. Also read: Sensex slips 129 points, Nifty ends at 11,073 India`s tally of COVID-19 cases crossed 1.75 million on Sunday, after logging a record surge a day earlier, with the death toll at 37,364. The country has the world`s third highest caseload after the United States and Brazil. Home Minister Amit Shah, a close aide to Prime Minister Narendra Modi, tested positive for COVID-19 on Sunday, becoming the senior-most politician in the country to catch the virus. The chief minister of Karnataka, home to the tech hub of Bengaluru, also said he tested positive for COVID-19. Other Asian share markets were mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan.

Sensex, Nifty fall as virus cases surge; banks slip

According to experts, in the next monetary policy review, the RBI chairman may cut the policy rate repo by 0.25 percent

RBI may reduce interest rates by another 0.25 bps to revive economy

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank.

As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario.

<a href="https://www.wionews.com/india-news/coffee-day-owed-472-million-by-deceased-founders-firm-report-315761">Also read|&nbsp;Coffee Day owed $472 million by deceased founder's firm: report</a>

"The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said.

The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India.

Financial sector risks

The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward.

"Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated.

The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years.

"The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated.

However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Bad loans in the Indian banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday. Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank. As India`s economy feels the impact of the COVID-19 pandemic, macro stress tests indicate that the gross NPA ratio of all banks could increase to 12.5% by next March under a baseline scenario and may escalate to 14.7% under a very severely stressed scenario, the report said. It did not give details of that scenario. Also read| Coffee Day owed $472 million by deceased founder's firm: report "The pandemic has the potential to amplify financial vulnerabilities, including corporate and household debt burdens in the case of severe economic contraction," the report said. The semi-annual report is compiled by the Financial Stability and Development Council - an umbrella group of regulators - and released by the Reserve Bank of India. Financial sector risks The report highlighted that relief measures for borrowers introduced as part of measures to help India`s economy through the pandemic, such as deferments of loan and interest payments for six months, may have implications for the financial health of banks, going forward. "Nearly half of the customers accounting for around half of outstanding bank loans opted to avail the benefit of the relief measures," it stated. The report also highlighted the problems for over 9,500 shadow banks, known as non-banking financial companies (NBFCs), in India, which have been battling a liquidity crisis over the last couple of years. "The declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system," the report stated. However, the report said contagion risks through financial networks have moderated due to the higher capital buffers introduced in recent years and a shrinking interbank market.

Indian banks' bad debt ratio could hit nearly 15% by March in worst-case scenario: Report

India's concerted efforts to strengthen the business climate and encourage investment in trade have helped attract investment, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF.

The remarks by International Monetary Fund's Chief Spokesperson Gerry Rice on Thursday came in response to a question on the recent FDI announcements made by global giants like Facebook and Google in India.

In recent weeks, several international companies have pledged USD 20 billion FDI in India, and a whopping USD 40 billion this year so far.

"Concerted efforts have been made in recent years, in India, to strengthen the business climate and encourage investment in trade, and these have helped to attract investment and improve the current account financing mix and also help to contain external vulnerabilities," Mr Rice told reporters at a news conference in Washington.

"Relevant reforms have included the new bankruptcy code, the National Goods and Services Tax. These have helped to gain in India's doing business ranking, moving up rapidly in the World Bank's Ease of Doing Business index, up to 63 in 2020, from 100 in 2018, significant progress there, indeed," Mr Rice said.

"Nonetheless, further economic reforms, including labour, product mixed land, and others, and additional infrastructure investment are necessary, in our view, to attract even more investment, and to ensure sustainable and more inclusive growth in India," he said in response to the question.

Recently, the IMF in its update to the World Economic Outlook projected India's growth rate at -4.5 per cent, and then six per cent recovery, for the fiscal year 2020-21 and fiscal year 2020-22, respectively, he said.

"Our projection for fiscal year 2020-2021 was revised down, as was the case for most countries driven by the impact of the pandemic," Mr Rice said.

"On balance, I think we would say the risks to the economic outlook remain," he said.

Despite gradual recovery in activities and a solid agricultural performance, the downside risks remain. "The main downside risk is, of course, the continued spread of the pandemic," he noted, referring to the coronavirus pandemic.

"Further outbreaks could require additional lockdowns, and concerns about the virus could also dampen consumer confidence and delay the economic recovery. Again, this is the case not just in India, but in many countries," Mr Rice said.

India's concerted efforts to strengthen the business climate and encourage investment in trade have helped attract investment, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF.

India's concerted efforts to strengthen the business climate and encourage investment in trade have helped attract investment, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF. The remarks by International Monetary Fund's Chief Spokesperson Gerry Rice on Thursday came in response to a question on the recent FDI announcements made by global giants like Facebook and Google in India. In recent weeks, several international companies have pledged USD 20 billion FDI in India, and a whopping USD 40 billion this year so far. "Concerted efforts have been made in recent years, in India, to strengthen the business climate and encourage investment in trade, and these have helped to attract investment and improve the current account financing mix and also help to contain external vulnerabilities," Mr Rice told reporters at a news conference in Washington. "Relevant reforms have included the new bankruptcy code, the National Goods and Services Tax. These have helped to gain in India's doing business ranking, moving up rapidly in the World Bank's Ease of Doing Business index, up to 63 in 2020, from 100 in 2018, significant progress there, indeed," Mr Rice said. "Nonetheless, further economic reforms, including labour, product mixed land, and others, and additional infrastructure investment are necessary, in our view, to attract even more investment, and to ensure sustainable and more inclusive growth in India," he said in response to the question. Recently, the IMF in its update to the World Economic Outlook projected India's growth rate at -4.5 per cent, and then six per cent recovery, for the fiscal year 2020-21 and fiscal year 2020-22, respectively, he said. "Our projection for fiscal year 2020-2021 was revised down, as was the case for most countries driven by the impact of the pandemic," Mr Rice said. "On balance, I think we would say the risks to the economic outlook remain," he said. Despite gradual recovery in activities and a solid agricultural performance, the downside risks remain. "The main downside risk is, of course, the continued spread of the pandemic," he noted, referring to the coronavirus pandemic. "Further outbreaks could require additional lockdowns, and concerns about the virus could also dampen consumer confidence and delay the economic recovery. Again, this is the case not just in India, but in many countries," Mr Rice said.

India needs further economic reforms to attract more investment: IMF

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions. The medium-term outlook for the Indian economy, however, remains uncertain with supply chains and demand yet to be fully restored while the trajectory of the coronavirus spread and the length of its impact remain unknown, he added.

The RBI chief also said the coronavirus pandemic has so far been the "biggest test of robustness and resilience of India's economic and financial system".

"Coronavirus pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and financial system," Shaktikanta Das said, in his keynote address at the 7th SBI Banking and Economics Conclave.

According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic.

Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise.

"The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully -- how long it will take for demand conditions to normalise and what kind of durable effects the pandemic will leave behind on our potential growth," he said.

Das said that the 2008 global crisis and the current crisis show that such economic shocks have "fatter tails" than generally believed, and that the country's financial system should have larger capital buffers.

A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added.

The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of Rs 9.57 trillion ($127.28 billion).

It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers.

Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm.

The RBI chief also said inflation would continue to moderate going forward and investment activity will revive.

India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 8,20,915 including 22,123 dead.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the country's economy has started showing signs of normalcy with easing of more than two months of coronavirus-induced lockdown restrictions. The medium-term outlook for the Indian economy, however, remains uncertain with supply chains and demand yet to be fully restored while the trajectory of the coronavirus spread and the length of its impact remain unknown, he added. The RBI chief also said the coronavirus pandemic has so far been the "biggest test of robustness and resilience of India's economic and financial system". "Coronavirus pandemic perhaps represents so far the biggest test of robustness and resilience of our economic and financial system," Shaktikanta Das said, in his keynote address at the 7th SBI Banking and Economics Conclave. According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic. Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise. "The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully -- how long it will take for demand conditions to normalise and what kind of durable effects the pandemic will leave behind on our potential growth," he said. Das said that the 2008 global crisis and the current crisis show that such economic shocks have "fatter tails" than generally believed, and that the country's financial system should have larger capital buffers. A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added. The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of Rs 9.57 trillion ($127.28 billion). It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers. Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm. The RBI chief also said inflation would continue to moderate going forward and investment activity will revive. India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 8,20,915 including 22,123 dead.

Signs of normalcy in India's economy but medium-term outlook uncertain: RBI chief

Attracting Businesses to India&nbsp;

If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially. This is a great opportunity and India is eminently positioned to take advantage of this. This will need a very determined effort from the industry lobby, the businesses, and of course the government. How efficiently we do it and how hungrily we grab this will determine its success.&nbsp;&nbsp;

Tapping into our DNA of Innovation&nbsp;

Indians have always been patting our own backs, saying we are a very innovative society. This is the time to show how innovative we really are. There is no magic wand for the challenge that we are facing. All of us have to rethink the fundamentals of what we are doing. We must be ready to make enormous innovation. We must be willing to come down to the ground from whatever comfortable towers we are sitting on, and reinvent a lot of things. Unfortunately, over the last few decades, we have been left out of the economic development in the world, including Asia. We have to level that in the next three to five years.&nbsp;

Reviving Rural India&nbsp;

Statistics say that around 72 per cent of the world's investment is just in some thirty-odd cities in the world. It is quite natural for people from other areas to migrate there. In India, it was estimated that 220 million people will move from rural to urban India. You can imagine the plight of the cities if this happens. If we do not focus on spreading industry across the seven-hundred and odd districts in the country, migration will become too difficult to manage. The only way you can spread it is by taking it to rural India in some way. I understand that it is much more difficult because to get talent and train people in rural India takes much more. But if you do this now, the economy will be far more resilient. If ten years later another virus or something else comes our way, we will be able to sail through those things much better. &nbsp;

Business Opportunities in Agriculture&nbsp;

Right now, India is the only nation in the world where 60 per cent&nbsp;of the population still knows how to perform this magic of transforming mud into food. We are capable of growing food twelve months of the year, and we have the soil types, climatic conditions and latitudinal spread to grow almost any crop in the world. In the next five to ten years, if we do the right things, we can establish India as the breadbasket of the world. We need to focus on rural India. That is where the people are, that is where the land is and that is where India's wealth is.&nbsp;

Rethinking Education&nbsp;

Everyone does not have an academic mindset. They do not have to go to university. They have to learn other skills, innovations and a variety of disciplines. The industry needs skills. They can make a slightly long-term investment and train tenth standard children for their industry’s requirements. A certain amount of disruption will be there, but we must be willing to go through that. Only then will we unleash the potential of our youthful population. &nbsp;

We must set up a structure that by the time you are eighteen, either you must be going to a university or you must have some livelihood skills. If you do not have both, you must be conscripted into either the military or paramilitary or a one-year residential skill development institution. They must go through the discipline of becoming physically fit, mentally fit and disciplined enough to learn a skill and execute it. You will develop an enormous amount of skill in the country with this. &nbsp;

Turning Waste into Wealth&nbsp;

Right now for many polluting industries, there is a law in the country that they must set up their own treatment plants. That has been our biggest mistake because such treatment plants will only work on the inspection day! It is most important that a treatment industry grows in such a way that your effluent is my business and my raw material. Then I will make sure my raw material is always flowing and my business is to treat it. You can make the treatment industry very lucrative. &nbsp;

For domestic waste, as there is a charge for how much water or electricity you use, there must also be a charge for how much sewage you discharge. Today, there are many technologies to transform filth into wealth. If there is an economic value to it, people will not let it go waste. &nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

Attracting Businesses to India If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially.

Attracting Businesses to India If we have to put India’s markets and industry back in place, we will need strong investment from outside the country. The trust that people had in certain economies has been seriously eroded, and over 300 top companies in the world are looking for a new home, if not fully, at least partially. This is a great opportunity and India is eminently positioned to take advantage of this. This will need a very determined effort from the industry lobby, the businesses, and of course the government. How efficiently we do it and how hungrily we grab this will determine its success. Tapping into our DNA of Innovation Indians have always been patting our own backs, saying we are a very innovative society. This is the time to show how innovative we really are. There is no magic wand for the challenge that we are facing. All of us have to rethink the fundamentals of what we are doing. We must be ready to make enormous innovation. We must be willing to come down to the ground from whatever comfortable towers we are sitting on, and reinvent a lot of things. Unfortunately, over the last few decades, we have been left out of the economic development in the world, including Asia. We have to level that in the next three to five years. Reviving Rural India Statistics say that around 72 per cent of the world's investment is just in some thirty-odd cities in the world. It is quite natural for people from other areas to migrate there. In India, it was estimated that 220 million people will move from rural to urban India. You can imagine the plight of the cities if this happens. If we do not focus on spreading industry across the seven-hundred and odd districts in the country, migration will become too difficult to manage. The only way you can spread it is by taking it to rural India in some way. I understand that it is much more difficult because to get talent and train people in rural India takes much more. But if you do this now, the economy will be far more resilient. If ten years later another virus or something else comes our way, we will be able to sail through those things much better.  Business Opportunities in Agriculture Right now, India is the only nation in the world where 60 per cent of the population still knows how to perform this magic of transforming mud into food. We are capable of growing food twelve months of the year, and we have the soil types, climatic conditions and latitudinal spread to grow almost any crop in the world. In the next five to ten years, if we do the right things, we can establish India as the breadbasket of the world. We need to focus on rural India. That is where the people are, that is where the land is and that is where India's wealth is. Rethinking Education Everyone does not have an academic mindset. They do not have to go to university. They have to learn other skills, innovations and a variety of disciplines. The industry needs skills. They can make a slightly long-term investment and train tenth standard children for their industry’s requirements. A certain amount of disruption will be there, but we must be willing to go through that. Only then will we unleash the potential of our youthful population.  We must set up a structure that by the time you are eighteen, either you must be going to a university or you must have some livelihood skills. If you do not have both, you must be conscripted into either the military or paramilitary or a one-year residential skill development institution. They must go through the discipline of becoming physically fit, mentally fit and disciplined enough to learn a skill and execute it. You will develop an enormous amount of skill in the country with this. Turning Waste into Wealth Right now for many polluting industries, there is a law in the country that they must set up their own treatment plants. That has been our biggest mistake because such treatment plants will only work on the inspection day! It is most important that a treatment industry grows in such a way that your effluent is my business and my raw material. Then I will make sure my raw material is always flowing and my business is to treat it. You can make the treatment industry very lucrative.  For domestic waste, as there is a charge for how much water or electricity you use, there must also be a charge for how much sewage you discharge. Today, there are many technologies to transform filth into wealth. If there is an economic value to it, people will not let it go waste. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Innovative ideas to revive the Indian economy

Prime Minister Narendra Modi on Thursday said Indian economy has started seeing "green shoots" of recovery, and that it would play a leading role in global recovery from the coronavirus pandemic.

He added India remains one of the most open economies in the world.

PM Modi was addressing the India Global Week 2020 --&nbsp;one of the biggest international events on India's globalisation. He also invited the world industry to invest in India.

PM Modi said that in these times when the world is battling the COVID-19 pandemic, it is natural to talk about revival and there is faith that the story of global revival will have India playing a leading role.

"Indians have the spirit to achieve what is believed to be impossible. No wonder that in India, we are already seeing green shoots when it comes to economic recovery," Modi said while addressing the India Global Week 2020.

“In these times, it is natural to talk about revival. It is equally natural to link global revival and India. There is faith that the story of global revival will have India playing a leading role," he said.

"We are laying the red carpet for all global companies to come and establish their presence in India. Very few countries will offer the kind of opportunities India does today."

The prime minister said Indians have been natural reformers, and that historically, the country has managed to overcome every challenge -- be it social or economic.

“On one hand, India is fighting a strong battle against the global pandemic. With an increased focus on people's health, we are equally focussed on the health of the economy,” he said, adding, "when India talks of revival, it's revival with care, with compassion, which is sustainable both for environment and economy. Indians have the spirit to achieve what is believed to be impossible. No wonder that in India, we are already seeing green-shoots of economic recovery."

Modi also said that there are many possibilities and opportunities in various sunrise sectors in India.

"Our reforms in agriculture provide a very attractive investment opportunity to invest in storage and logistics," Modi said.

During the last six years, India has made great gains in areas such as financial inclusion, housing and infra construction, ease of doing business and bold tax reforms like the GST, he said.

"India is ready to do whatever it can to further global good and prosperity. This is an India that is reforming, performing and transforming," he said.

The prime minister also spoke of his government's coronavirus relief package comprising free ration, cooking gas and cash to poor.

"In this time of a pandemic we have provided relief to our citizens and undertaken big structural reforms," he said.

"Our relief package has been smart and targeted to provide the most poor with the most help. Thanks to technology every penny has reached the beneficiaries directly."

The relief package was named Aatmanirbhar Bharat or self-reliant India. "Aatmanirbhar Bharat is not about being self-contained or being closed to the world. It is about being self-sustaining and self-generating," he said.

And when the lockdown restrictions were eased, the government launched one of the world's largest public works programmes to provide employment to millions of workers. "This will not only re-energise the rural economy but also help in the creation of a durable infrastructure in rural areas," he said.

The pandemic has once again shown that India's pharma industry is an asset not just for India but for the entire world, he said adding it has played a leading role in reducing the cost of medicines, especially for developing countries.

Prime Minister Narendra Modi on Thursday said Indian economy has started seeing "green shoots" of recovery, and that it would play a leading role in global recovery from the coronavirus pandemic.

Prime Minister Narendra Modi on Thursday said Indian economy has started seeing "green shoots" of recovery, and that it would play a leading role in global recovery from the coronavirus pandemic. He added India remains one of the most open economies in the world. PM Modi was addressing the India Global Week 2020 -- one of the biggest international events on India's globalisation. He also invited the world industry to invest in India. PM Modi said that in these times when the world is battling the COVID-19 pandemic, it is natural to talk about revival and there is faith that the story of global revival will have India playing a leading role. "Indians have the spirit to achieve what is believed to be impossible. No wonder that in India, we are already seeing green shoots when it comes to economic recovery," Modi said while addressing the India Global Week 2020. “In these times, it is natural to talk about revival. It is equally natural to link global revival and India. There is faith that the story of global revival will have India playing a leading role," he said. "We are laying the red carpet for all global companies to come and establish their presence in India. Very few countries will offer the kind of opportunities India does today." The prime minister said Indians have been natural reformers, and that historically, the country has managed to overcome every challenge -- be it social or economic. “On one hand, India is fighting a strong battle against the global pandemic. With an increased focus on people's health, we are equally focussed on the health of the economy,” he said, adding, "when India talks of revival, it's revival with care, with compassion, which is sustainable both for environment and economy. Indians have the spirit to achieve what is believed to be impossible. No wonder that in India, we are already seeing green-shoots of economic recovery." Modi also said that there are many possibilities and opportunities in various sunrise sectors in India. "Our reforms in agriculture provide a very attractive investment opportunity to invest in storage and logistics," Modi said. During the last six years, India has made great gains in areas such as financial inclusion, housing and infra construction, ease of doing business and bold tax reforms like the GST, he said. "India is ready to do whatever it can to further global good and prosperity. This is an India that is reforming, performing and transforming," he said. The prime minister also spoke of his government's coronavirus relief package comprising free ration, cooking gas and cash to poor. "In this time of a pandemic we have provided relief to our citizens and undertaken big structural reforms," he said. "Our relief package has been smart and targeted to provide the most poor with the most help. Thanks to technology every penny has reached the beneficiaries directly." The relief package was named Aatmanirbhar Bharat or self-reliant India. "Aatmanirbhar Bharat is not about being self-contained or being closed to the world. It is about being self-sustaining and self-generating," he said. And when the lockdown restrictions were eased, the government launched one of the world's largest public works programmes to provide employment to millions of workers. "This will not only re-energise the rural economy but also help in the creation of a durable infrastructure in rural areas," he said. The pandemic has once again shown that India's pharma industry is an asset not just for India but for the entire world, he said adding it has played a leading role in reducing the cost of medicines, especially for developing countries.

India will play leading role in global revival, already seeing green shoots of economic recovery: PM Modi

The International Monetary Fund has updated its world economic outlook and a forecast for India is grim. Watch report.

IMF: Indian economy to contract 4.5% in 2020

After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday.

The coronavirus pandemic will lead to shrinking of the already slowing economy in 2020-21 that started in April. Fitch Ratings forecast a 5 per cent contraction in the GDP in the ongoing financial year.

"The pandemic has drastically weakened India's growth outlook and laid bare the challenges caused by a high public-debt burden," Fitch Ratings said in its APAC Sovereign Credit Overview released on Wednesday.

"After the global crisis, India's GDP growth is likely to return to higher levels than 'BBB' category peers, provided it avoids further deterioration in financial sector health as a result of the pandemic," it said forecasting a 9.5 per cent real GDP growth next year.

India on March 25 instituted the world's largest lockdown to combat the novel coronavirus, halting almost all economic activities.

The lockdown has been repeatedly extended, although some restrictions have been eased from May 4 in zones with fewer infections. "However, new cases have continued to rise," it said.

To support the economy, the Reserve Bank of India (RBI) has eased monetary policy by cutting policy rates and providing liquidity through long-term repo operations.

Prudential requirements for banks have also been eased to free up liquidity for lending. "The government has announced stimulus measures amounting to 10 per cent of GDP, of which the fiscal component of about 1 per cent of GDP is significantly less than many of India's peers," the rating agency said.

General government debt already stood at 70 per cent of GDP in 2019-20, well above the 'BBB' rating median of 42 per cent.

India's ratio of public debt/GDP is expected to rise to 84 per cent of GDP in 2020-21  up from a forecast of 71 per cent when Fitch Ratings affirmed the 'BBB-' rating in December 2019.

"This is based on our expectation of slower economic growth in FY21 and wider fiscal deficits, assuming that the government's fiscal response remains restrained," it said.

"The credit profile is strengthened by relative external resilience stemming from solid foreign-reserve buffers, but weakened by some lagging structural factors, including governance indicators and GDP per capita."

Listing positives for India, Fitch Ratings said there was greater confidence in a sustained reduction in general government debt over the medium term to a level closer to the 'BBB' peer median.

Also, there is a possibility of higher sustained investment and growth rates without the creation of macroeconomic imbalances, such as from successful structural reform implementation.

Among the negatives was a material increase in the fiscal deficit, causing the gross general government debt/GDP ratio to be placed on a sustained upward trajectory.

Other negative was loose macroeconomic policy settings that cause a return of persistently high inflation and widening current-account deficits, which would increase the risk of external funding stress, it said.

After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday.

After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday. The coronavirus pandemic will lead to shrinking of the already slowing economy in 2020-21 that started in April. Fitch Ratings forecast a 5 per cent contraction in the GDP in the ongoing financial year. "The pandemic has drastically weakened India's growth outlook and laid bare the challenges caused by a high public-debt burden," Fitch Ratings said in its APAC Sovereign Credit Overview released on Wednesday. "After the global crisis, India's GDP growth is likely to return to higher levels than 'BBB' category peers, provided it avoids further deterioration in financial sector health as a result of the pandemic," it said forecasting a 9.5 per cent real GDP growth next year. India on March 25 instituted the world's largest lockdown to combat the novel coronavirus, halting almost all economic activities. The lockdown has been repeatedly extended, although some restrictions have been eased from May 4 in zones with fewer infections. "However, new cases have continued to rise," it said. To support the economy, the Reserve Bank of India (RBI) has eased monetary policy by cutting policy rates and providing liquidity through long-term repo operations. Prudential requirements for banks have also been eased to free up liquidity for lending. "The government has announced stimulus measures amounting to 10 per cent of GDP, of which the fiscal component of about 1 per cent of GDP is significantly less than many of India's peers," the rating agency said. General government debt already stood at 70 per cent of GDP in 2019-20, well above the 'BBB' rating median of 42 per cent. India's ratio of public debt/GDP is expected to rise to 84 per cent of GDP in 2020-21  up from a forecast of 71 per cent when Fitch Ratings affirmed the 'BBB-' rating in December 2019. "This is based on our expectation of slower economic growth in FY21 and wider fiscal deficits, assuming that the government's fiscal response remains restrained," it said. "The credit profile is strengthened by relative external resilience stemming from solid foreign-reserve buffers, but weakened by some lagging structural factors, including governance indicators and GDP per capita." Listing positives for India, Fitch Ratings said there was greater confidence in a sustained reduction in general government debt over the medium term to a level closer to the 'BBB' peer median. Also, there is a possibility of higher sustained investment and growth rates without the creation of macroeconomic imbalances, such as from successful structural reform implementation. Among the negatives was a material increase in the fiscal deficit, causing the gross general government debt/GDP ratio to be placed on a sustained upward trajectory. Other negative was loose macroeconomic policy settings that cause a return of persistently high inflation and widening current-account deficits, which would increase the risk of external funding stress, it said.

Indian economy to grow at 9.5 per cent in next fiscal: Fitch Ratings

Gross domestic product data out later on Friday is expected to show India’s economy grew at its slowest pace in at least two years in the March quarter as the coronavirus pandemic weakened already declining consumer demand and private investment.

The median forecast from a Reuters poll of economists put annual economic growth at 2.1% in the March quarter, lower than 4.7% in the December quarter. Forecasts ranged between +4.5% and -1.5%.

<a href="https://www.wionews.com/opinions-blogs/coronavirus-impact-geopolitical-developments-deepen-chinas-global-5g-woes-301549">Also read:&nbsp;Coronavirus impact: Geopolitical developments deepen China’s global 5G woes</a>

Prime Minister Narendra Modi has maintained the lockdown ordered on March 25 to curb the spread of COVID-19 in the world’s second most populous country, though many restrictions were eased for manufacturing, transport and other services from May 18.

The full impact of the lockdown on manufacturing and services will become more apparent in the June quarter, with Goldman Sachs predicting a 45% contraction from a year ago.

Economists expect the fiscal year that began in April will see the worst economic contraction in four decades.

“Economic activity will face ongoing disruption over the next year as the country transitions to a post-COVID-19 world,” the rating agency S&amp;P said on Thursday, cutting its 2020/21 forecast to a 5% contraction.

Weather forecasts for normal monsoon rains are in Indian farmers’ favour at least, giving hope that the rural sector can help support the millions of migrant workers who returned to their villages from the cities when the lockdown began.

Number of coronavirus affected people in India has crossed 158,000 with 4,531 deaths, with an average daily jump of 6,000 cases in the last one week.

Gross domestic product data out later on Friday is expected to show India’s economy grew at its slowest pace in at least two years in the March quarter as the coronavirus pandemic weakened already declining consumer demand and private investment.

Gross domestic product data out later on Friday is expected to show India’s economy grew at its slowest pace in at least two years in the March quarter as the coronavirus pandemic weakened already declining consumer demand and private investment. The median forecast from a Reuters poll of economists put annual economic growth at 2.1% in the March quarter, lower than 4.7% in the December quarter. Forecasts ranged between +4.5% and -1.5%. Also read: Coronavirus impact: Geopolitical developments deepen China’s global 5G woes Prime Minister Narendra Modi has maintained the lockdown ordered on March 25 to curb the spread of COVID-19 in the world’s second most populous country, though many restrictions were eased for manufacturing, transport and other services from May 18. The full impact of the lockdown on manufacturing and services will become more apparent in the June quarter, with Goldman Sachs predicting a 45% contraction from a year ago. Economists expect the fiscal year that began in April will see the worst economic contraction in four decades. “Economic activity will face ongoing disruption over the next year as the country transitions to a post-COVID-19 world,” the rating agency S&P said on Thursday, cutting its 2020/21 forecast to a 5% contraction. Weather forecasts for normal monsoon rains are in Indian farmers’ favour at least, giving hope that the rural sector can help support the millions of migrant workers who returned to their villages from the cities when the lockdown began. Number of coronavirus affected people in India has crossed 158,000 with 4,531 deaths, with an average daily jump of 6,000 cases in the last one week.

India's economy seen slowing rapidly in March quarter, with worse to come

The world is certainly suffering from the devastating recession and this is because of the coronavirus fears. The Indian economy is headed towards its worst recession.

Coronavirus Pandemic: India's GDP to contract by 5% in FY21

In order to boost the Indian economy Reserve Bank of India (RBI) in a move has reduced the key interest rates. Watch report.

RBI makes loans cheaper: Key interest rates reduced by 0.4%

Following the COVID-19-induced economic disruptions, up to 135 million jobs could be lost and 120 million people might be pushed back into poverty in India, all of which will have a hit on consumer income, spending and savings, reported news agency PTI quoting a report.

According to a new report by international management consulting firm Arthur D Little, the worst of COVID-19's impact will be felt by India's most vulnerable in terms of job loss, poverty increase and reduced per-capita income, which in turn will result in a steep decline in the Gross Domestic Product (GDP), the PTI report added.

"Given the continued rise of COVID-19 cases, we believe that a W-shaped recovery is the most likely scenario for India. This implies a GDP contraction of 10.8 per cent in FY 2020-21 and GDP growth of 0.8 per cent in FY 2021-22," the report said.

India's COVID-19 tally has crossed 90,000 and the nationwide death toll has touched nearly 2,800 so far.

The report titled "India: Surmounting the economic challenges posed by COVID-19: A 10-point programme to revive and power India's post-COVID economy" said the 'collateral damage' of the forecasted GDP slowdown, will be felt most acutely in employment, poverty alleviation, per-capita income and overall nominal GDP.

"Unemployment may rise to 35 per cent from 7.6 per cent resulting in 136 million jobs lost and a total of 174 million unemployed. Poverty alleviation will receive a set-back, significantly changing the fortunes of many, putting 120 million people into poverty and 40 million into abject poverty," the report said.

"India is headed towards a W-shaped economic recovery with a potential GDP contraction of 10.8 per cent in FY21. An opportunity loss of USD 1 trillion is staring India in its face," said Barnik Chitran Maitra, lead author of the report and Managing Partner &amp; CEO of Arthur D Little, India and South Asia.

The report suggested a 10-point programme to accelerate the recovery which includes strengthening the 'safety net' significantly for the most vulnerable, enabling the survival of small and medium businesses, restarting the rural economy and providing targeted assistance to at-risk sectors.

It further said the government should launch "Make in India 2.0" to capture global opportunities, build 'Modern India', accelerate Digital India and Innovation, strengthen global investment corridors with the US, UAE, Saudi Arabia, Japan and the UK, debottleneck land and labour and transform banking and financial markets in a bid to secure a sustainable economic future for 1.3 billion Indians.&nbsp;

(With inputs from PTI)

Following the COVID-19-induced economic disruptions, up to 135 million jobs could be lost and 120 million people might be pushed back into poverty in India, all of which will have a hit on consumer income, spending and savings, reported news agency PTI quoting a report.

Following the COVID-19-induced economic disruptions, up to 135 million jobs could be lost and 120 million people might be pushed back into poverty in India, all of which will have a hit on consumer income, spending and savings, reported news agency PTI quoting a report. According to a new report by international management consulting firm Arthur D Little, the worst of COVID-19's impact will be felt by India's most vulnerable in terms of job loss, poverty increase and reduced per-capita income, which in turn will result in a steep decline in the Gross Domestic Product (GDP), the PTI report added. "Given the continued rise of COVID-19 cases, we believe that a W-shaped recovery is the most likely scenario for India. This implies a GDP contraction of 10.8 per cent in FY 2020-21 and GDP growth of 0.8 per cent in FY 2021-22," the report said. India's COVID-19 tally has crossed 90,000 and the nationwide death toll has touched nearly 2,800 so far. The report titled "India: Surmounting the economic challenges posed by COVID-19: A 10-point programme to revive and power India's post-COVID economy" said the 'collateral damage' of the forecasted GDP slowdown, will be felt most acutely in employment, poverty alleviation, per-capita income and overall nominal GDP. "Unemployment may rise to 35 per cent from 7.6 per cent resulting in 136 million jobs lost and a total of 174 million unemployed. Poverty alleviation will receive a set-back, significantly changing the fortunes of many, putting 120 million people into poverty and 40 million into abject poverty," the report said. "India is headed towards a W-shaped economic recovery with a potential GDP contraction of 10.8 per cent in FY21. An opportunity loss of USD 1 trillion is staring India in its face," said Barnik Chitran Maitra, lead author of the report and Managing Partner & CEO of Arthur D Little, India and South Asia. The report suggested a 10-point programme to accelerate the recovery which includes strengthening the 'safety net' significantly for the most vulnerable, enabling the survival of small and medium businesses, restarting the rural economy and providing targeted assistance to at-risk sectors. It further said the government should launch "Make in India 2.0" to capture global opportunities, build 'Modern India', accelerate Digital India and Innovation, strengthen global investment corridors with the US, UAE, Saudi Arabia, Japan and the UK, debottleneck land and labour and transform banking and financial markets in a bid to secure a sustainable economic future for 1.3 billion Indians. (With inputs from PTI)

COVID-19 could cost 135 mn jobs, push 120 mn people into poverty in India: Report

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill.&nbsp;

A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years.

UN has predicted that the world economy will contract by 3.2 per cent in 2020 amid the coronavirus crisis, the sharpest contraction since the Great Depression in the 1930s.

But in the worst-case scenario, it said the global economy could contract by a further 0.5 per cent in 2021 if a new wave of infections and lockdowns continues in the third quarter, which ends September 30.

The UN report projects that the economic output of developed countries will plunge to minus 5 per cent and below, meanwhile, the GDP of the developing countries will contract by 0.7 per cent in 2020.

The report also forecast a 15 per cent contraction in world trade in 2020 as a result of sharply reduced global demand and disruptions in global supply chains.&nbsp;

COVID-19 is likely to push more than 34 million people into extreme poverty, the report added.&nbsp;

India’s GDP growth rate dips to 1.2% for FY 2020-21

The UN has slashed India's projected growth rate to 1.2 per cent in 2020, a further deterioration from the already slowed growth of 4.1 per cent in 2019.

However, India, which grew at 6.8 per cent in the fiscal year 2018, is forecast to recover slightly and clock a 5.5 per cent growth rate in 2021.

“The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said.

The abrupt halt of commercial activity threatens to impose economic pain so profound and enduring in every region of the world at once that recovery could take years.

(With inputs from agencies)

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill.

With the governments imposing large-scale restrictions on economic activities to halt the spread of coronavirus, the global economy has come to a virtual standstill. A report by the United Nations Department of Economic and Social Affairs has projected that the world economy is set to lose nearly $8.5 trillion over the next 2 years. UN has predicted that the world economy will contract by 3.2 per cent in 2020 amid the coronavirus crisis, the sharpest contraction since the Great Depression in the 1930s. But in the worst-case scenario, it said the global economy could contract by a further 0.5 per cent in 2021 if a new wave of infections and lockdowns continues in the third quarter, which ends September 30. The UN report projects that the economic output of developed countries will plunge to minus 5 per cent and below, meanwhile, the GDP of the developing countries will contract by 0.7 per cent in 2020. The report also forecast a 15 per cent contraction in world trade in 2020 as a result of sharply reduced global demand and disruptions in global supply chains. COVID-19 is likely to push more than 34 million people into extreme poverty, the report added. India’s GDP growth rate dips to 1.2% for FY 2020-21 The UN has slashed India's projected growth rate to 1.2 per cent in 2020, a further deterioration from the already slowed growth of 4.1 per cent in 2019. However, India, which grew at 6.8 per cent in the fiscal year 2018, is forecast to recover slightly and clock a 5.5 per cent growth rate in 2021. “The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said. The abrupt halt of commercial activity threatens to impose economic pain so profound and enduring in every region of the world at once that recovery could take years. (With inputs from agencies)

UN forecasts coronavirus to shrink world economy by 3.2%; India's growth rate projected to slow to 1.2% in 2020

Indian Prime Minister Narendra Modi announced a <a href="https://www.wionews.com/india-news/pm-modi-announces-rs-20-lakh-crore-economic-package-lockdown-40-guidelines-to-be-out-soon-298288">Rs 20 lakh crore ($266 billion) support package </a>for India's economy on Tuesday to help mitigate the damage caused by the coronavirus.

The stimulus value in dollar terms is almost equivalent to Pakistan's annual GDP of $284 billion. It is higher than the GDP of 149 countries including Vietnam, Portugal, Greece, New Zealand and Romania.

The package is worth double the enterprise value of India's most valued company, Reliance Industries. The stimulus amount is five times the personal wealth of Mukesh Ambani.

India's economic package is twice the wealth of 10 top billionaires. as per Bloomberg billionaire's index, the 10 top wealthiest Indians own wealth of $147 billion. The stimulus announced is 1.8 times bigger than that.&nbsp; 
 
<a href="https://www.wionews.com/india-news/key-highlights-of-pm-modis-address-to-nation-298296">Also read: Key highlights of PM Modi's address to the nation&nbsp;</a>

The stimulus is also equal to market capital of JP Morgan and Mastercard, the two finance sector giants. It also surpasses the market cap of other global companies such as Intel, Verizon, Coca-Cola and Pfizer.

It is also around 20 per cent of the market value of all the stocks listed on the Bombay Stock Exchange. BSE's total market cap is at around Rs 121 lakh crore.

Apart from the RBI assistance, the government had last month announced Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

(With inputs from agencies)

Indian Prime Minister Narendra Modi announced a Rs 20 lakh crore ($266 billion) support package for India's economy on Tuesday to help mitigate the damage caused by the coronavirus.

Indian Prime Minister Narendra Modi announced a Rs 20 lakh crore ($266 billion) support package for India's economy on Tuesday to help mitigate the damage caused by the coronavirus. The stimulus value in dollar terms is almost equivalent to Pakistan's annual GDP of $284 billion. It is higher than the GDP of 149 countries including Vietnam, Portugal, Greece, New Zealand and Romania. The package is worth double the enterprise value of India's most valued company, Reliance Industries. The stimulus amount is five times the personal wealth of Mukesh Ambani. India's economic package is twice the wealth of 10 top billionaires. as per Bloomberg billionaire's index, the 10 top wealthiest Indians own wealth of $147 billion. The stimulus announced is 1.8 times bigger than that. Also read: Key highlights of PM Modi's address to the nation The stimulus is also equal to market capital of JP Morgan and Mastercard, the two finance sector giants. It also surpasses the market cap of other global companies such as Intel, Verizon, Coca-Cola and Pfizer. It is also around 20 per cent of the market value of all the stocks listed on the Bombay Stock Exchange. BSE's total market cap is at around Rs 121 lakh crore. Apart from the RBI assistance, the government had last month announced Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security. (With inputs from agencies)

Indian PM Narendra Modi's stimulus package almost equal to Pakistan's annual GDP

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty. Unfortunately, if we do not handle things right in the next two years' time, we may push them straight back below the poverty line. &nbsp;

But in all this, there are bright spots. Without a strong investment from outside the country, we will not have the capability to put the markets and industry back in place and move populations back to their workplaces.&nbsp;

There is a great opportunity for India as the trust that people had in the Chinese economy has been seriously eroded. Already Japan has offered over $500 billion dollars to move their industry out of China, and the United States could do something even more drastic. Over 300 top companies in the world may start partially moving out of China.&nbsp;

India is eminently positioned to benefit if they come here even for partial production. This will need a very determined effort from the industry lobby, the businesses, and the government has to pitch in. We must set up a single-point clearance without any bureaucratic process – for land, electricity, and all clearances. If necessary, pass an Economic Emergency bill to empower states to execute the facilitation of big investments. A billion-dollar-plus investment must be given immunity from PILs and cost litigation for a period of five years. If we do this, we can get the economy buzzing. It all depends on how efficiently and hungrily we grab this opportunity.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty.

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty. Unfortunately, if we do not handle things right in the next two years' time, we may push them straight back below the poverty line. But in all this, there are bright spots. Without a strong investment from outside the country, we will not have the capability to put the markets and industry back in place and move populations back to their workplaces. There is a great opportunity for India as the trust that people had in the Chinese economy has been seriously eroded. Already Japan has offered over $500 billion dollars to move their industry out of China, and the United States could do something even more drastic. Over 300 top companies in the world may start partially moving out of China. India is eminently positioned to benefit if they come here even for partial production. This will need a very determined effort from the industry lobby, the businesses, and the government has to pitch in. We must set up a single-point clearance without any bureaucratic process – for land, electricity, and all clearances. If necessary, pass an Economic Emergency bill to empower states to execute the facilitation of big investments. A billion-dollar-plus investment must be given immunity from PILs and cost litigation for a period of five years. If we do this, we can get the economy buzzing. It all depends on how efficiently and hungrily we grab this opportunity. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

To get the  economy buzzing, India should woo foreign industry

Central Minister Nitin Gadkari Exclusively speaks to WION | India Lockdown | MSME In an exclusive conversation with WION, Central Minister NItin Gadkari said that the govt of India will soon introduce relief package for Medium small and micro enterprises amid Coronavirus lockdown.

Central Minister Nitin Gadkari Exclusively speaks to WION

The impact of the coronavirus outbreak will exacerbate the material slowdown in India's economic growth, with the country expected to see 0% expansion in the current fiscal year, analysts at Moody's said on Friday.

Moody's report: India may see 0% GDP growth this fiscal year

In this segment of Straight Talk, WION in an exclusive conversation spoke to IMF Chief Economist Gita Gopinath on India's GDP growth in 2020.

WION exclusive Straight Talk with IMF Chief Economist  Gita Gopinath on Indian Economy

The global economy is staring at a recession. According to some estimates, India's growth rate could drop to less than two percent. WION's Palki Sharma tells you what India is doing to contain the economic fallout of the virus.

Gravitas: India moves to revive economy | Wuhan Coronavirus

Reserve Bank of India Governor Shaktikanta Das today cut reverse repo rate by 25 basis points to 3.75%, while keeping repo rate unchanged

RBI Governor Shaktikanta Das cuts reverse repo rate 25 bps

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