Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth.

"For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround &amp; resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," &nbsp;he said in his address to media.

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Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown.

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<a href="https://twitter.com/hashtag/LIVE?src=hash&amp;ref_src=twsrc%5Etfw">#LIVE</a> | TLTRO auction of Rs 25,000 crore to be conducted today, announces <a href="https://twitter.com/RBI?ref_src=twsrc%5Etfw">@RBI</a> Governor <a href="https://twitter.com/DasShaktikanta?ref_src=twsrc%5Etfw">@DasShaktikanta</a> <a href="https://t.co/QOycHHSea3">pic.twitter.com/QOycHHSea3</a>
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"Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today."

"RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." 
 
Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das.

Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate.

"Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das.

"To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. 
 
Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive &amp; monitoring the situation closely.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround & resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," he said in his address to media. RBI Governor Shaktikanta Das addresses media https://t.co/CmP3VMD9Rl — WION (@WIONews) April 17, 2020 × Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown. #LIVE | TLTRO auction of Rs 25,000 crore to be conducted today, announces @RBI Governor @DasShaktikanta pic.twitter.com/QOycHHSea3 — WION (@WIONews) April 17, 2020 × "Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today." "RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das. Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate. "Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das. "To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive & monitoring the situation closely.

India's growth among best in G20 nations; GDP to grow at 7.4% in 2021-22, says RBI chief

The Reserve Bank Of India has announced liquidity measures for banks and NPFC's and now the central bank has forecast a 7.4% GDP growth. Watch report.

RBI governor on revival of economy | India's GDP to grow at 7.4% in 2021-22

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

'India's GDP to grow at 7.4% in 2021-22' says RBI Governor

Equity benchmark indices slipped further on Friday as banks and financial stocks dragged with investors expecting a deterioration in their asset qualities due to disruption in economic activity from the coronavirus outbreak.

At the closing bell, the BSE S&amp;P Sensex was down by 674 points or 2.39 per cent at 27,591 while the Nifty 50 slipped by 170 points or 2.06 per cent at 8,084.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/world-bank-approves-1-billion-emergency-fund-for-india-to-fight-coronavirus-290252" hreflang="en">World Bank approves $1 billion emergency fund for India to fight coronavirus</a>

Except for Nifty FMCG and pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty private bank down by 5.4 per cent, IT and auto by 3 per cent each, and metal by 1.9 per cent.

Nifty pharma, however, rose by 4.7 per cent.Among stocks, private sector lender Axis Bank dropped by 8.8 per cent to Rs 326.90 per share while IndusInd Bank dipped by 8.3 per cent, ICICI Bank by 7.4 per cent and State Bank of India by 5.6 per cent.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/will-coronavirus-crisis-cost-your-paycheck-employment-290233" hreflang="en">Will coronavirus crisis cost your paycheck, employment?</a>

HDFC was down by 5.2 per cent to Rs 1,499.75 per share. The other major losers were Titan, Maruti, Asian Paints and Wipro.But Sun Pharma jumped by 9.5 per cent to Rs 376.45 per share while Cipla rose by 8.2 per cent.

ITC, GAIL, ONGC and Bharat Petroleum Corporation traded with a positive bias.Meanwhile, Asian markets were flat despite Wall Street's overnight gains after crude prices notched their biggest one-day surge on record.

Japan Nikkei crawled up by 0.01 per cent and South Korea's Kospi by 0.03 per cent while Hong Kong's Hang Seng slipped by 0.19 per cent and Shanghai composite by 0.6 per cent.

US stocks rallied after President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signalled a willingness to make a deal.

Saudi Arabia said it will call an emergency meeting of the Organisation of the Petroleum Exporting Countries, media reports said. 
&nbsp;

Equity benchmark indices slipped further on Friday as banks and financial stocks dragged with investors expecting a deterioration in their asset qualities due to disruption in economic activity from the coronavirus outbreak.

Equity benchmark indices slipped further on Friday as banks and financial stocks dragged with investors expecting a deterioration in their asset qualities due to disruption in economic activity from the coronavirus outbreak. At the closing bell, the BSE S&P Sensex was down by 674 points or 2.39 per cent at 27,591 while the Nifty 50 slipped by 170 points or 2.06 per cent at 8,084. Also read: World Bank approves $1 billion emergency fund for India to fight coronavirus Except for Nifty FMCG and pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty private bank down by 5.4 per cent, IT and auto by 3 per cent each, and metal by 1.9 per cent. Nifty pharma, however, rose by 4.7 per cent.Among stocks, private sector lender Axis Bank dropped by 8.8 per cent to Rs 326.90 per share while IndusInd Bank dipped by 8.3 per cent, ICICI Bank by 7.4 per cent and State Bank of India by 5.6 per cent. Also read: Will coronavirus crisis cost your paycheck, employment? HDFC was down by 5.2 per cent to Rs 1,499.75 per share. The other major losers were Titan, Maruti, Asian Paints and Wipro.But Sun Pharma jumped by 9.5 per cent to Rs 376.45 per share while Cipla rose by 8.2 per cent. ITC, GAIL, ONGC and Bharat Petroleum Corporation traded with a positive bias.Meanwhile, Asian markets were flat despite Wall Street's overnight gains after crude prices notched their biggest one-day surge on record. Japan Nikkei crawled up by 0.01 per cent and South Korea's Kospi by 0.03 per cent while Hong Kong's Hang Seng slipped by 0.19 per cent and Shanghai composite by 0.6 per cent. US stocks rallied after President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signalled a willingness to make a deal. Saudi Arabia said it will call an emergency meeting of the Organisation of the Petroleum Exporting Countries, media reports said.

Sensex falls by 674 points, banking stocks plunge

Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved ₹1,340 crore recapitalisation of regional rural banks to improve their capital to risk-weighted assets ratio.

Union Minister Prakash Javadekar said the CCEA approved the utilisation of ₹670 crore as the Central government's share for the scheme.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/centre-issues-guidelines-to-ministries-amid-lockdown-due-to-coronavirus-288325">Centre issues guidelines to ministries amid lockdown due to coronavirus</a>

The decision will provide minimum regulatory capital to regional rural banks for another year beyond 2019-20, that is up to 2020-21 for those which are unable to maintain minimum capital to risk-weighted assets ratio (CRAR) of 9 per cent as per regulatory norms prescribed by the Reserve Bank of India (RBI).

Also read: <a href="https://www.wionews.com/opinions-blogs/coronavirus-pandemic-will-bring-a-halt-to-globalisation-288214">Coronavirus pandemic will bring a halt to globalisation</a>

A financially stronger and robust regional rural banks with improved CRAR will enable them to meet credit requirement in rural areas, according to an official statement.

As per RBI guidelines, regional rural banks have to provide 75 per cent of their total credit under priority sector lending (PSL).

These banks are primarily catering to the credit and banking requirements of the agriculture sector and rural areas with a focus on small and marginal farmers, micro and small enterprises, rural artisans and weaker sections of the society.

The government has initiated structural consolidation of regional rural banks in three phases, thereby reducing their number from 196 in 2005 to 45 now.

Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved ₹1,340 crore recapitalisation of regional rural banks to improve their capital to risk-weighted assets ratio.

Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved ₹1,340 crore recapitalisation of regional rural banks to improve their capital to risk-weighted assets ratio. Union Minister Prakash Javadekar said the CCEA approved the utilisation of ₹670 crore as the Central government's share for the scheme. Also read: Centre issues guidelines to ministries amid lockdown due to coronavirus The decision will provide minimum regulatory capital to regional rural banks for another year beyond 2019-20, that is up to 2020-21 for those which are unable to maintain minimum capital to risk-weighted assets ratio (CRAR) of 9 per cent as per regulatory norms prescribed by the Reserve Bank of India (RBI). Also read: Coronavirus pandemic will bring a halt to globalisation A financially stronger and robust regional rural banks with improved CRAR will enable them to meet credit requirement in rural areas, according to an official statement. As per RBI guidelines, regional rural banks have to provide 75 per cent of their total credit under priority sector lending (PSL). These banks are primarily catering to the credit and banking requirements of the agriculture sector and rural areas with a focus on small and marginal farmers, micro and small enterprises, rural artisans and weaker sections of the society. The government has initiated structural consolidation of regional rural banks in three phases, thereby reducing their number from 196 in 2005 to 45 now.

Cabinet approves ₹1,340 crore recapitalisation of regional rural banks

A full blown unemployment crisis was already looming over the Indian economy. Now the rapidly spreading coronavirus is taking an additional toll on corporations and businesses. Watch report:

Coronavirus hitting the Indian market jobs: Causes layoffs and closures

Asia's third-largest economy i.e, India also got worst-hit by travel restrictions and the closure of malls, theatres and educational institutions amid the outbreak of 'pandemic' COVID-19.

COVID-19 took its toll on Indian economy as well, worst hit to aviation & hospitality industry

Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said.

Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic.

The median forecast of a Reuters poll of economists put annual economic growth at 4.7% in the December quarter, marginally higher than 4.5% in the previous quarter thanks to a small rebound in rural demand, private consumption and government spending.

"The economy showed some signs of recovery in December quarter due to higher government spending and external factors, but faces a risk of relapsing in the current quarter mainly due to the coronavirus," said N.R. Bhanumurthy, an economist at National Institute of Public Finance and Policy (NIPFP), a Delhi-based government funded think tank.

Even achieving 4.5% annual growth this quarter would be a challenge, Bhanumurthy added.

In its annual budget presented earlier this month, the government estimated economic growth in the current fiscal year ending in March would be 5%, the lowest for 11 years.

And the government only targeted a slight recovery in growth to 6% for 2020/21, well below the levels required to generate jobs for the millions of young Indians entering the labour market each month.

Analysts expected growth would pick up gradually driven by a favourable base effect, a cut in corporate tax rates last September and increased government spending.

But, the central bank earlier this month warned that the downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still uncertain and unfolding.

"Although number of cases of COVID-19 (coronavirus) in India are less, the economic impact is expected to accrue from supply chain risk," Soumya Kanti Ghosh, chief economist at State Bank of India, citing problems in supply of raw materials from China for pharmaceuticals and other exports.

A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the Reserve Bank of India hold off on further cuts in interest rates for now, while keeping its monetary stance accommodative.

Finance Minister Nirmala Sitharaman has said some signs of green shoots were visible in the economy as the government has eased bottlenecks for consumer and industry bank loans, while expanding spending on infrastructure.

But analysts remained doubtful.

Goldman Sachs cut its growth forecast to 4.9% for the March quarter from earlier estimate of 5.4%.

"Despite the downward revision, we believe the risks to our growth forecast are still tilted to the downside, given the risk aversion in the domestic financial sector, the continued weakness in rural demand," Goldman Sachs, said in a note on Wednesday.

&nbsp;

Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said.

Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said. Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic. The median forecast of a Reuters poll of economists put annual economic growth at 4.7% in the December quarter, marginally higher than 4.5% in the previous quarter thanks to a small rebound in rural demand, private consumption and government spending. "The economy showed some signs of recovery in December quarter due to higher government spending and external factors, but faces a risk of relapsing in the current quarter mainly due to the coronavirus," said N.R. Bhanumurthy, an economist at National Institute of Public Finance and Policy (NIPFP), a Delhi-based government funded think tank. Even achieving 4.5% annual growth this quarter would be a challenge, Bhanumurthy added. In its annual budget presented earlier this month, the government estimated economic growth in the current fiscal year ending in March would be 5%, the lowest for 11 years. And the government only targeted a slight recovery in growth to 6% for 2020/21, well below the levels required to generate jobs for the millions of young Indians entering the labour market each month. Analysts expected growth would pick up gradually driven by a favourable base effect, a cut in corporate tax rates last September and increased government spending. But, the central bank earlier this month warned that the downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still uncertain and unfolding. "Although number of cases of COVID-19 (coronavirus) in India are less, the economic impact is expected to accrue from supply chain risk," Soumya Kanti Ghosh, chief economist at State Bank of India, citing problems in supply of raw materials from China for pharmaceuticals and other exports. A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the Reserve Bank of India hold off on further cuts in interest rates for now, while keeping its monetary stance accommodative. Finance Minister Nirmala Sitharaman has said some signs of green shoots were visible in the economy as the government has eased bottlenecks for consumer and industry bank loans, while expanding spending on infrastructure. But analysts remained doubtful. Goldman Sachs cut its growth forecast to 4.9% for the March quarter from earlier estimate of 5.4%. "Despite the downward revision, we believe the risks to our growth forecast are still tilted to the downside, given the risk aversion in the domestic financial sector, the continued weakness in rural demand," Goldman Sachs, said in a note on Wednesday.

India's GDP seen growing at 4.7% in December quarter

The Wuhan coronavirus could have a major impact on the Indian economy. From tourism to automakers and even the film industry, they all can be affected by this outbreak. Which industries will be the worst hit? WION's Palki Sharma breaks it down for you.

Gravitas: Wuhan Coronavirus: Impact on Indian economy

Finance Minister Nirmala Sitharaman said on Tuesday that several important indicators have emerged in the recent past pointing towards green shoots in the economy.

WION Wallet: 'India's Economic growth set to bounce back' says officials

Some good news for the Indian economy. For the month of January, manufacturing in India has expanded at its quickest pace in nearly eight years. WION's Palki Sharma has the details.

Gravitas: India's manufacturing activity touches a new high

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track.&nbsp;

An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government.

Agricultural and Rural Sectors

In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025.&nbsp;

Taxation

There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs.&nbsp;

Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. &nbsp;

The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years.&nbsp;

Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs.&nbsp; 
 
WATCH: Budget 2020 - what it means for foreign investors?

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Infrastructure Sector

The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities.&nbsp;

&nbsp;Women and Child Development, Social Welfare

The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women.&nbsp;

Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society.&nbsp;

Defence Sector

The expenditure of the government on <a href="https://www.wionews.com/opinions-blogs/union-budget-2020-defence-sector-needs-more-money-for-modernisation-278261">defence and its ancillary services </a>has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores.&nbsp;

In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and&nbsp;society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments.

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track. An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government. Agricultural and Rural Sectors In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025. Taxation There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs. Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years. Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs. WATCH: Budget 2020 - what it means for foreign investors? × Infrastructure Sector The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities. Women and Child Development, Social Welfare The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women. Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society. Defence Sector The expenditure of the government on defence and its ancillary services has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores. In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Union Budget 2020: Government has taken bold steps to put economy back on track

Finance Minister <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Nirmala Sitharaman </a>will on Saturday present the budget of the second term of the <a href="https://www.wionews.com/india-news/pm-modi-netanyahu-exchange-pleasantries-on-28th-anniversary-of-establishment-of-india-israel-diplomatic-ties-277605">Narendra Modi</a> government.

This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>will present the full-year budget for the year ending March 2021.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">'Feel good' budget may see cut in tax rate, sops for social sectors</a>

The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes.

The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges.

The survey was released by Chief Economic Adviser Krishnamurthy Subramanian.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">What will Sitharaman carry for her second budget presentation?</a>

The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections.

Till 2016, the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Union Budget </a>was presented on the last working day of February.

Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India. Sitharaman will present the full-year budget for the year ending March 2021. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes. The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges. The survey was released by Chief Economic Adviser Krishnamurthy Subramanian. Also read: What will Sitharaman carry for her second budget presentation? The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year. Sitharaman had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections. Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Nirmala Sitharaman to present budget in Parliament today

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors</a>

“The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday.

Also read:&nbsp;<a href="http://wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">Briefcase or 'bahi-khata'&nbsp;- What will Sitharaman carry for her second budget presentation?</a>

“It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday.

She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/budget-news-2020-budget-glossary-here-are-key-terms-you-should-know-to-understand-the-budget-273968">2020 Budget Glossary - Here are key terms you should know to understand the Budget</a>

“For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question.

The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent.

We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said.

Georgieva said that the current economic slowdown cannot be described as a recession.

She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors “The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday. Also read: Briefcase or 'bahi-khata' - What will Sitharaman carry for her second budget presentation? “It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday. She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact. Also read: 2020 Budget Glossary - Here are key terms you should know to understand the Budget “For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question. The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent. We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said. Georgieva said that the current economic slowdown cannot be described as a recession. She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

Indian economy experienced abrupt slowdown in 2019, but it’s not in a recession: IMF MD

Rajya Sabha Chairman <a href="https://www.wionews.com/india-news/make-people-equal-partners-in-development-process-vice-president-venkaiah-naidu-to-ias-officers-249264">M Venkaiah Naidu</a> suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">budget</a> is approved by the Parliament.

He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries.

Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in <a href="https://www.wionews.com/india-news/rajya-sabha-passes-citizenship-amendment-bill-267747">Rajya Sabha</a> at his residence coinciding with the start of the budget session.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">'Feel good' budget may see cut in tax rate, sops for social sectors</a>

The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants.

Naidu said he would also speak to the Lok Sabha Speaker <a href="https://www.wionews.com/india-news/lok-sabha-speaker-om-birla-rejects-ministers-demand-says-there-will-be-no-adjournments-238511">Om Birla</a> in this regard.

Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session.

He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget.

Also read: <a href="https://www.wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">What will Sitharaman carry for her second budget presentation?</a>

He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House.

Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members.

According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures.

Leader of Opposition <a href="https://www.wionews.com/india-general-elections-2019/azad-does-a-u-turn-219356">Ghulam Nabi Azad </a>said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House.

Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament. He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries. Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in Rajya Sabha at his residence coinciding with the start of the budget session. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants. Naidu said he would also speak to the Lok Sabha Speaker Om Birla in this regard. Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session. He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget. Also read: What will Sitharaman carry for her second budget presentation? He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House. Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members. According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures. Leader of Opposition Ghulam Nabi Azad said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House. Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Naidu suggests giving reports on Demands for Grants before budget approval

Hours before the Finance Minister delivers the budget speech - The Economic Survey for 2020 has been released. A revival in growth is likely, but the Indian economy still faces some challenges. In this report, WION breaks down the good, bad and the ugly from the economic survey.

Gravitas: What does the 2020 economic survey say

The Indian Budget 2020 is just around the corner and the Indian economy is facing an unprecedented slowdown. WION's Sumit Chaturvedi caught up with Mahindra & Mahindra CEO Pawan Kumar Goenka at the World Economic Forum at Davos to understand his point of view of the economy and expectations from the annual budget.

WION exclusive conversation with Mahindra & Mahindra CEO Pawan Kumar Goenka

The<a href="https://www.wionews.com/opinions/wion-edit-summarising-the-state-of-indian-economy-274415"> International Monetary Fund </a>on Monday slashed its 2020 global growth forecast&nbsp;due to the&nbsp;slowdown&nbsp;in India and other emerging markets.&nbsp;

The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

However, it said that improving <a href="https://www.wionews.com/opinions/explained-how-us-iran-tensions-impact-the-economy-273030">US-China trade tensions </a>have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said.

In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent.

The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed&nbsp;sharply amid contraction of credit and stress in the non-banking sector.

<a href="https://www.wionews.com/india-news/india-to-surpass-germany-and-japan-to-become-worlds-third-largest-economy-by-2034-271033">Also read: India to surpass Germany and Japan to become world's third largest economy by 2034</a>

India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch.&nbsp;

Gravitas: Summarising the state of the Indian economy

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The IMF also downgraded other economies&nbsp;including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent&nbsp;in 2020, down from 1.3 per cent&nbsp;forecast in October.

Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts.

But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing.

(With inputs from agencies)

&nbsp;

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said. However, it said that improving US-China trade tensions have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said. In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent. The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed sharply amid contraction of credit and stress in the non-banking sector. Also read: India to surpass Germany and Japan to become world's third largest economy by 2034 India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch. Gravitas: Summarising the state of the Indian economy × The IMF also downgraded other economies including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent in 2020, down from 1.3 per cent forecast in October. Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts. But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing. (With inputs from agencies)

Sharp slowdown in India drag on world economy, says IMF

Amazon CEO Jeff Bezos is on a three-day visit to India. Bezos has pledged to invest $ 1 billion in small and medium enterprises (SMEs) in India. Meanwhile, traders across the country are up in arms against Amazon.

'Jeff Bezos Go Back!': Indian traders call Amazon an 'Economic Terrorist'

Investors in India's equity markets have a reason to cheer today. The benchmark indices scaled new peaks. But the economy is sputtering. Palki Sharma summarises the state of the Indian economy with five key indicators.

Gravitas: Summarising the state of the Indian economy

In few weeks, Finance Minister Nirmala Sitharaman will present the 2020 budget. Expectations are high given the precarious situation of Indian economy. On Wion Edit, Palki Sharma lists some solutions to boost demand & revive consumption in Indian economy.

WION Edit: Measures to revive Indian economy

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India.

This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in.

Former Chief Economic Advisor Arvind Subramanian called it 'India's great slowdown'. Former RBI governor Raghuram Rajan says '5 per cent growth simply doesn't cut it.'

Economists are divided in their prescriptions for recovery. So what can and should the government do?

On the WION edit, we will compile some of the solutions that are being discussed.&nbsp;

India is not an export-driven economy, it's a consumption-driven economy and the government's first priority must be finding ways to revive consumption.

The government must begin with the rural economy which is in deep distress. Over half of India's population depends on the rural economy.&nbsp;

If the health of agriculture is crippled, the Indian economy will limp. Average monthly household income in rural India remains woefully low and this is because of disparity between a farmer's income and produce and the government needs to find ways to fix this.

Second, the problem of bad loans needs to be fixed. The whole picture and extent are still not clear and that is frankly, scary.

Third, rate cuts are a good tool to facilitate spending and boost demand, but passing on the benefits are equally important.

GST rates can be rationalised and lowered, in some cases, to revive demand.

But the real problem is the fiscal problem, there is no space for a fiscal stimulus and that is a big worry.

Fourth, India cannot allow dodgy assets to destabilise banks. For very long, India's policymakers had a simple solution for banks with poor performance - to merge the weak banks with strong state-run banks.

In tricky global weather and a weak consumption regime, solving the jobs crisis will be next to impossible.

The government must act quickly. If the levers of demand and consumption are allowed to rust, then the path to recovery might be much longer. Moreover, fluctuation in oil prices will push inflation.

Budget incentives to boost consumption will go a long way in restoring confidence in the Indian economy. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world)&nbsp;

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India. This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in.

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India. This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in. Former Chief Economic Advisor Arvind Subramanian called it 'India's great slowdown'. Former RBI governor Raghuram Rajan says '5 per cent growth simply doesn't cut it.' Economists are divided in their prescriptions for recovery. So what can and should the government do? On the WION edit, we will compile some of the solutions that are being discussed. India is not an export-driven economy, it's a consumption-driven economy and the government's first priority must be finding ways to revive consumption. The government must begin with the rural economy which is in deep distress. Over half of India's population depends on the rural economy. If the health of agriculture is crippled, the Indian economy will limp. Average monthly household income in rural India remains woefully low and this is because of disparity between a farmer's income and produce and the government needs to find ways to fix this. Second, the problem of bad loans needs to be fixed. The whole picture and extent are still not clear and that is frankly, scary. Third, rate cuts are a good tool to facilitate spending and boost demand, but passing on the benefits are equally important. GST rates can be rationalised and lowered, in some cases, to revive demand. But the real problem is the fiscal problem, there is no space for a fiscal stimulus and that is a big worry. Fourth, India cannot allow dodgy assets to destabilise banks. For very long, India's policymakers had a simple solution for banks with poor performance - to merge the weak banks with strong state-run banks. In tricky global weather and a weak consumption regime, solving the jobs crisis will be next to impossible. The government must act quickly. If the levers of demand and consumption are allowed to rust, then the path to recovery might be much longer. Moreover, fluctuation in oil prices will push inflation. Budget incentives to boost consumption will go a long way in restoring confidence in the Indian economy. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Summarising the state of Indian economy

Congress leader and former Union Finance Minister and senior <a href="https://www.wionews.com/india-news/p-chidambaram-wants-pm-modi-to-have-televised-qa-session-over-caa-with-critics-273880">P Chidambaram</a> on Tuesday hit out at the Centre over the "sliding economy" and said that if unemployment rises and income declines there is the danger of youth exploding in anger.

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The circle of incompetent management is complete. Mr Narendra Modi's government started in July 2014 with CPI inflation at 7.39%. In December 2019 it was 7.35%
— P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/1216903117989564418?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote>
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In a series of tweets, the former finance minister said, "The circle of incompetent management is complete. Mr <a href="https://www.wionews.com/india-news/no-question-of-nrc-in-bihar-pm-has-clarified-his-stand-on-it-nitish-kumar-273931">Narendra Modi's</a> government started in July 2014 with CPI inflation at 7.39 per cent. In December 2019 it was 7.35 per cent."

Taking a jibe at BJP's promise of "Achhe Din", he said, "Food inflation stands at 14.12 per cent. Vegetable prices are up 60 per cent. Onion prices are over Rs 100 per kg. This is the achhe din promised by the BJP."

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The nation is engrossed with the anti-CAA, anti-NPR protests. Both present a clear and present danger. 
 
The sliding economy is an even greater threat to the country. If unemployment rises and incomes decline, there is the danger of youth and students exploding in anger.
— P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/1216903307651735553?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote>
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"The nation is engrossed with the <a href="https://www.wionews.com/india-news/delhi-police-arrested-94-persons-for-violence-during-anti-caa-protests-report-274087">anti-CAA</a>, anti-NPR protests. Both present a clear and present danger. The sliding economy is an even greater threat to the country. If unemployment rises and incomes decline, there is the danger of youth and students exploding in anger," he added. 
 
The retail inflation rose to 7.35 per cent in December 2019 compared to 5.54 per cent in the previous month, according to government data released on Monday. 
 
The last month's food inflation was 14.12 per cent as compared to 10.01 per cent in November last year, <a href="https://www.wionews.com/india-news/582-of-rural-807-of-urban-households-have-drinking-water-facilities-within-their-homes-national-sample-survey-264253">National Statistical Office</a> data showed. 
 
The data showed retail inflation was at over five-year high mainly due to the rise in the price of vegetables. 
 
The rise in inflation in vegetables was 60.5 per cent, pulses and products 15.44 per cent and meat and fish was 9.57 per cent.

Congress leader and former Union Finance Minister and senior P Chidambaram on Tuesday hit out at the Centre over the "sliding economy" and said that if unemployment rises and income declines there is the danger of youth exploding in anger.

Congress leader and former Union Finance Minister and senior P Chidambaram on Tuesday hit out at the Centre over the "sliding economy" and said that if unemployment rises and income declines there is the danger of youth exploding in anger. The circle of incompetent management is complete. Mr Narendra Modi's government started in July 2014 with CPI inflation at 7.39%. In December 2019 it was 7.35% — P. Chidambaram (@PChidambaram_IN) January 14, 2020 × In a series of tweets, the former finance minister said, "The circle of incompetent management is complete. Mr Narendra Modi's government started in July 2014 with CPI inflation at 7.39 per cent. In December 2019 it was 7.35 per cent." Taking a jibe at BJP's promise of "Achhe Din", he said, "Food inflation stands at 14.12 per cent. Vegetable prices are up 60 per cent. Onion prices are over Rs 100 per kg. This is the achhe din promised by the BJP." The nation is engrossed with the anti-CAA, anti-NPR protests. Both present a clear and present danger. The sliding economy is an even greater threat to the country. If unemployment rises and incomes decline, there is the danger of youth and students exploding in anger. — P. Chidambaram (@PChidambaram_IN) January 14, 2020 × "The nation is engrossed with the anti-CAA, anti-NPR protests. Both present a clear and present danger. The sliding economy is an even greater threat to the country. If unemployment rises and incomes decline, there is the danger of youth and students exploding in anger," he added. The retail inflation rose to 7.35 per cent in December 2019 compared to 5.54 per cent in the previous month, according to government data released on Monday. The last month's food inflation was 14.12 per cent as compared to 10.01 per cent in November last year, National Statistical Office data showed. The data showed retail inflation was at over five-year high mainly due to the rise in the price of vegetables. The rise in inflation in vegetables was 60.5 per cent, pulses and products 15.44 per cent and meat and fish was 9.57 per cent.

P Chidambaram attacks Modi govt over 'sliding economy' and unemployment

Congress General Secretary <a href="https://www.wionews.com/india-news/priyanka-gandhi-extends-wishes-to-people-on-lohri-273925">Priyanka Gandi Vadra</a>&nbsp;on Tuesday targeted Prime Minister <a href="https://www.wionews.com/india-news/p-chidambaram-attacks-modi-govt-over-sliding-economy-and-unemployment-274135">Narendra Modi</a> led Centre for failing to control the rising prices of vegetables and essential commodities. 
 
The Congress leader also accused the Central government of not only picking pockets of the citizens but also taking away their livelihood.

"The prices of vegetables and other edible commodities are getting out of reach of the common man. What will the poor eat when vegetables, oil, pulses and flour turn expensive. The poor are not even getting employment due to the economic recession. The BJP government has not just picked the pockets of the poor but also kicked on their stomach," she tweeted in the morning in Hindi.

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Government of India: The annual rate of inflation, based on monthly WPI, stood at 2.59% (provisional) for the month of December, 2019 (over December,2018) as compared to 0.58% (provisional) for the previous month. <a href="https://t.co/Dx5xQB3WtB">pic.twitter.com/Dx5xQB3WtB</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1216975178749497345?ref_src=twsrc%5Etfw">January 14, 2020</a></blockquote>
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It should be noted that Vadra's comments came just a day after data showed that retail inflation rose to a five-and-half year high of 7.35 per cent in December last year.

Congress General Secretary Priyanka Gandi Vadra on Tuesday targeted Prime Minister Narendra Modi led Centre for failing to control the rising prices of vegetables and essential commodities.

Congress General Secretary Priyanka Gandi Vadra on Tuesday targeted Prime Minister Narendra Modi led Centre for failing to control the rising prices of vegetables and essential commodities. The Congress leader also accused the Central government of not only picking pockets of the citizens but also taking away their livelihood. "The prices of vegetables and other edible commodities are getting out of reach of the common man. What will the poor eat when vegetables, oil, pulses and flour turn expensive. The poor are not even getting employment due to the economic recession. The BJP government has not just picked the pockets of the poor but also kicked on their stomach," she tweeted in the morning in Hindi. Government of India: The annual rate of inflation, based on monthly WPI, stood at 2.59% (provisional) for the month of December, 2019 (over December,2018) as compared to 0.58% (provisional) for the previous month. pic.twitter.com/Dx5xQB3WtB — ANI (@ANI) January 14, 2020 × It should be noted that Vadra's comments came just a day after data showed that retail inflation rose to a five-and-half year high of 7.35 per cent in December last year.

Priyanka Gandhi slams Modi govt for 'rising inflation'

The <a href="https://www.wionews.com/business-economy/world-bank-to-reduce-lending-to-china-267039">World Bank</a> has projected India's growth at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year.

In its latest semi-annual Global Economic Prospects report, the World Bank said that weakness in credit from non-bank financial companies is expected to linger.

"In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5 per cent in the financial year 2019-20, which ends March 31 and recover to 5.8 per cent the following fiscal year."

Also read: <a href="https://www.wionews.com/business-economy/india-forecasts-201920-gdp-growth-rate-at-5-272748">India forecasts 2019/20 GDP growth rate at 5%</a>

Globally, the bank projected that economic growth is projected to recover to 2.5 per cent in 2020 from 2.4 per cent in 2019.

However, the bank has noted that downside risk persists that might have an impact on the world's growth.

"Nevertheless, downside risks predominate including the possibility of a re-escalation of global trade tensions, sharp downturns in major economies, and financial disruptions in emerging market and developing economies," the report said.

The World Bank has projected India's growth at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year.

The World Bank has projected India's growth at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year. In its latest semi-annual Global Economic Prospects report, the World Bank said that weakness in credit from non-bank financial companies is expected to linger. "In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5 per cent in the financial year 2019-20, which ends March 31 and recover to 5.8 per cent the following fiscal year." Also read: India forecasts 2019/20 GDP growth rate at 5% Globally, the bank projected that economic growth is projected to recover to 2.5 per cent in 2020 from 2.4 per cent in 2019. However, the bank has noted that downside risk persists that might have an impact on the world's growth. "Nevertheless, downside risks predominate including the possibility of a re-escalation of global trade tensions, sharp downturns in major economies, and financial disruptions in emerging market and developing economies," the report said.

World Bank pegs India's growth at 5% in financial year 2020, projects recovery next year

The world bank has released its outlook for 2020 and there is some bad news for Indian economy. In the ongoing fiscal year India's growth is expected to shrink to 5%. Lack of credit has been sighted the reason behind the shrink. #WION #IndianEconomy #India #FiscalYear

World Bank on Indian Economy: India's growth expected to shrink to 5% in 2020

<a href="https://www.wionews.com/business-economy/sensex-crashes-by-788-points-on-us-iran-tensions-banks-and-auto-companies-bleed-272541">Indian stocks</a> sank and the rupee weakened on Wednesday, as Iran struck US bases in Iraq. Shares tanked over 240 points in early trade on Wednesday.

The rupee was weaker by 0.27 per cent at 71.9900 against the dollar after hitting its lowest since November&nbsp;14.

Read:&nbsp;<a href="https://www.wionews.com/world/iran-fires-missiles-at-us-bases-in-iraq-272811">Iran fires 'more than a dozen' ballistic missiles at US bases in Iraq</a>

Oil refiner <a href="https://www.wionews.com/business-economy/india-to-offload-bharat-petroleum-in-state-stake-sell-off-263518">Bharat Petroleum</a> Corp Ltd was the top decliner on the Nifty, falling 2.2 per cent amid the rise in crude, which could hurt margins at refining companies.

Other Asian shares and US&nbsp;Treasury yields also tumbled while gold shot higher.

Watch:&nbsp;<a href="https://www.wionews.com/videos/amid-escalating-tensions-in-west-asia-indian-stock-markets-close-in-the-red-272641">Amid escalating tensions in West Asia Indian stock markets close in the red</a>

India imports much of its crude from the Middle East, and its markets are sensitive to swings in prices, which have dipped this week on fears of a disruption to oil supplies.

"For the time being, the biggest risk factor for the Indian economy is the possible closure of <a href="https://www.wionews.com/photos/what-makes-strait-of-hormuz-worlds-most-important-oil-artery-227135">Strait of Hormuz</a> - where almost half of the global oil supplies pass through," said Arnob Biswas, head of FX Research at SMC Global Securities in New Delhi.

"Higher oil prices may lead to headline CPI beyond 6.00 per cent in the coming months," he added in reference to the consumer price index.

Brent crude futures were up 95 cents at $69.22 a barrel, after earlier rising to $71.75, their highest since mid-September 2019.

In India, the NSE Nifty 50 index-tracking blue-chip equities were down 0.86 per cent at 11,948.85 by 0350 GMT, while the benchmark S&amp;P BSE Sensex slid 0.75 per cent to 40,564.72. The two indexes plunged nearly 2% on Monday after a spike in crude prices, and the Nifty saw its worst one-day drop in some four months.

Growth in Asia's third-largest economy has already slowed to multi-year lows, and on Tuesday, India forecast 5 per cent growth for the current financial year, the slowest pace in 11 years.

The projections will likely prompt finance minister Nirmala Sitharaman to opt for extra fiscal stimulus when she presents the annual budget next month.

Indian stocks sank and the rupee weakened on Wednesday, as Iran struck US bases in Iraq. Shares tanked over 240 points in early trade on Wednesday. The rupee was weaker by 0.

Indian stocks sank and the rupee weakened on Wednesday, as Iran struck US bases in Iraq. Shares tanked over 240 points in early trade on Wednesday. The rupee was weaker by 0.27 per cent at 71.9900 against the dollar after hitting its lowest since November 14. Read: Iran fires 'more than a dozen' ballistic missiles at US bases in Iraq Oil refiner Bharat Petroleum Corp Ltd was the top decliner on the Nifty, falling 2.2 per cent amid the rise in crude, which could hurt margins at refining companies. Other Asian shares and US Treasury yields also tumbled while gold shot higher. Watch: Amid escalating tensions in West Asia Indian stock markets close in the red India imports much of its crude from the Middle East, and its markets are sensitive to swings in prices, which have dipped this week on fears of a disruption to oil supplies. "For the time being, the biggest risk factor for the Indian economy is the possible closure of Strait of Hormuz - where almost half of the global oil supplies pass through," said Arnob Biswas, head of FX Research at SMC Global Securities in New Delhi. "Higher oil prices may lead to headline CPI beyond 6.00 per cent in the coming months," he added in reference to the consumer price index. Brent crude futures were up 95 cents at $69.22 a barrel, after earlier rising to $71.75, their highest since mid-September 2019. In India, the NSE Nifty 50 index-tracking blue-chip equities were down 0.86 per cent at 11,948.85 by 0350 GMT, while the benchmark S&P BSE Sensex slid 0.75 per cent to 40,564.72. The two indexes plunged nearly 2% on Monday after a spike in crude prices, and the Nifty saw its worst one-day drop in some four months. Growth in Asia's third-largest economy has already slowed to multi-year lows, and on Tuesday, India forecast 5 per cent growth for the current financial year, the slowest pace in 11 years. The projections will likely prompt finance minister Nirmala Sitharaman to opt for extra fiscal stimulus when she presents the annual budget next month.

Nifty, Sensex dive as crude jumps after Iran missile strike on US bases in Iraq

The Indian Rupee weakened and shares slipped on Friday as oil prices surged after <a href="https://www.wionews.com/world/president-trump-ordered-action-against-irans-quds-force-commander-soleimani-us-department-of-defence-271773">US&nbsp;airstrikes</a> killed a top Iranian commander, intensifying geopolitical tensions in the Middle East.

Other Asian markets also tumbled following news of the airstrikes, in which the head of Iran's elite Quds Force and a top Iraqi militia leader were killed early on Friday at Baghdad airport.

Oil prices surged, reflecting concerns that escalating Middle East tensions may disrupt oil supplies. <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Brent crude</a> futures jumped to their highest since September&nbsp;17 and were last up 2.88 per cent at $68.16 a barrel.

The Rupee weakened by 0.26 per cent to 71.5525 against the <a href="https://www.wionews.com/business-economy/dollar-snaps-six-day-losing-streak-a-flat-start-for-2020-271653">dollar</a>. India, the world's third-biggest oil consumer, imports about 80 per cent of its oil needs, making it highly susceptible to crude price swings.

"Iran will certainly retaliate ... Oil is likely to be on boil. Bad for large oil-importing countries, especially those with large trade and current account deficit like India," said Ajay Bodke, chief executive of portfolio management services at Prabhudas Lilladher Pvt Ltd in Mumbai.

"Risk aversion would spike sharply. Investors may again find comfort in mega-caps and shun 'risky' small- and mid-cap equities."

India's NSE <a href="https://www.wionews.com/business-economy/sensex-gains-by-321-points-as-nifty-closes-on-high-record-tata-motors-on-top-winner-271672">Nifty 50</a> index, which tracks blue-chip equities, was down 0.35 per cent to 12,239.50 by 0425 GMT, while the benchmark S&amp;P BSE&nbsp;Sensex&nbsp;fell 0.28 per cent to 41,512.38.

Shares in oil refining, retail and telecoms group Reliance Industries Ltd, India's largest company by market value, fell 0.7 per cent, on concerns of falling margins due to the rise in oil prices.

State-run oil producer Oil and Natural Gas Corp and gas suppliers <a href="https://www.wionews.com/business-economy/sensex-nifty-edge-higher-in-rangebound-trade-gail-power-grid-rise-270934">GAIL</a> gained roughly 2.4 per cent each.

Shares in India's top two airlines also slumped due to the surge in oil prices. InterGlobe Aviation Ltd fell 1.8 per cent, while SpiceJet Ltd shed 4.4 per cent.

Asian Paints Ltd, a Nifty 50 component, fell 1.4 per cent.

Shares in IT services companies, which receive a bulk of their revenue from overseas and benefit from a weaker Rupee, gained. Infosys Ltd and Wipro Ltd climbed 1.5 per cent each, while <a href="wionews.com/india-news/tata-sons-moves-supreme-court-over-nclat-order-to-reinstate-cyrus-mistry-as-chairman-271594">Tata</a> Consultancy Services rose 2.3 per cent.

Meanwhile, India's central bank on Thursday announced another simultaneous purchase and sale of government bonds, the third such operation in recent weeks, moves seen as an attempt to bring longer-term yields lower.

The Indian Rupee weakened and shares slipped on Friday as oil prices surged after US airstrikes killed a top Iranian commander, intensifying geopolitical tensions in the Middle East.

The Indian Rupee weakened and shares slipped on Friday as oil prices surged after US airstrikes killed a top Iranian commander, intensifying geopolitical tensions in the Middle East. Other Asian markets also tumbled following news of the airstrikes, in which the head of Iran's elite Quds Force and a top Iraqi militia leader were killed early on Friday at Baghdad airport. Oil prices surged, reflecting concerns that escalating Middle East tensions may disrupt oil supplies. Brent crude futures jumped to their highest since September 17 and were last up 2.88 per cent at $68.16 a barrel. The Rupee weakened by 0.26 per cent to 71.5525 against the dollar. India, the world's third-biggest oil consumer, imports about 80 per cent of its oil needs, making it highly susceptible to crude price swings. "Iran will certainly retaliate ... Oil is likely to be on boil. Bad for large oil-importing countries, especially those with large trade and current account deficit like India," said Ajay Bodke, chief executive of portfolio management services at Prabhudas Lilladher Pvt Ltd in Mumbai. "Risk aversion would spike sharply. Investors may again find comfort in mega-caps and shun 'risky' small- and mid-cap equities." India's NSE Nifty 50 index, which tracks blue-chip equities, was down 0.35 per cent to 12,239.50 by 0425 GMT, while the benchmark S&P BSE Sensex fell 0.28 per cent to 41,512.38. Shares in oil refining, retail and telecoms group Reliance Industries Ltd, India's largest company by market value, fell 0.7 per cent, on concerns of falling margins due to the rise in oil prices. State-run oil producer Oil and Natural Gas Corp and gas suppliers GAIL gained roughly 2.4 per cent each. Shares in India's top two airlines also slumped due to the surge in oil prices. InterGlobe Aviation Ltd fell 1.8 per cent, while SpiceJet Ltd shed 4.4 per cent. Asian Paints Ltd, a Nifty 50 component, fell 1.4 per cent. Shares in IT services companies, which receive a bulk of their revenue from overseas and benefit from a weaker Rupee, gained. Infosys Ltd and Wipro Ltd climbed 1.5 per cent each, while Tata Consultancy Services rose 2.3 per cent. Meanwhile, India's central bank on Thursday announced another simultaneous purchase and sale of government bonds, the third such operation in recent weeks, moves seen as an attempt to bring longer-term yields lower.

Shares slip, rupee weakens as oil jumps after US airstrikes in Iraq

The <a href="https://www.wionews.com/india-news/india-is-witnessing-temporary-effects-of-global-slowdown-amit-shah-270648">Reserve Bank of India's</a> move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains.

The Indian central bank has offered to buy a wider range of papers at the latest auction as against just the benchmark 10-year at the first two OMOs, making it more attractive for participants.

The central bank announced its first-ever special open market operation to simultaneously purchase and sell bonds in the market on December&nbsp;19 to manage bond yields which had been rising despite five consecutive rate cuts.

Yields are down 25 basis points since the announcement of the first auction after having risen as much as 37 bps since the RBI shocked markets by keeping rates on hold on December5.

"The fundamentals are turning adverse for the bond market but the RBI has managed to prevent yields from rising," said <a href="https://www.wionews.com/business-economy/india-to-launch-first-debt-exchange-traded-fund-266182">A. Prasanna</a>, an economist with <a href="https://www.wionews.com/business-economy/india-seen-making-sixth-interest-rate-cut-but-no-cure-for-economys-ills-265905">ICICI Securities</a> Primary Dealership.

"It is good news for the government and other borrowers but whether this equilibrium can sustain is doubtful."

The benchmark 10-year bond yield dropped as much as 3 bps to 6.48 per cent&nbsp;on Friday and traders said they expected yields to stay capped at 6.55 per cent levels in the near term despite broader economic concerns.

Brent crude futures jumped close to $3 to their highest since September after a <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">US&nbsp;airstrike</a> killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.

Market participants broadly expect the government to announce a 0.4 per cent-0.6 per cent&nbsp;slippage in fiscal deficit and that could result in 500 billion rupees-600 billion rupees ($6.97 billion-$8.37 billion) worth of additional borrowing.

Yields are expected to rise on the back of increased borrowing but traders expect the RBI to continue to manage yields at least until the budget, which is likely to be announced on February&nbsp;1.

The consensus is for at least two more special OMOs before the end of the month.

"The RBI has got themselves into a situation where they cannot stop now. Yields will jump the day they stop. There is a way to manage the markets and the RBI now has to live up to the expectations that it has built," a senior debt trader at a private bank said.

The Reserve Bank of India's move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains.

The Reserve Bank of India's move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains. The Indian central bank has offered to buy a wider range of papers at the latest auction as against just the benchmark 10-year at the first two OMOs, making it more attractive for participants. The central bank announced its first-ever special open market operation to simultaneously purchase and sell bonds in the market on December 19 to manage bond yields which had been rising despite five consecutive rate cuts. Yields are down 25 basis points since the announcement of the first auction after having risen as much as 37 bps since the RBI shocked markets by keeping rates on hold on December5. "The fundamentals are turning adverse for the bond market but the RBI has managed to prevent yields from rising," said A. Prasanna, an economist with ICICI Securities Primary Dealership. "It is good news for the government and other borrowers but whether this equilibrium can sustain is doubtful." The benchmark 10-year bond yield dropped as much as 3 bps to 6.48 per cent on Friday and traders said they expected yields to stay capped at 6.55 per cent levels in the near term despite broader economic concerns. Brent crude futures jumped close to $3 to their highest since September after a US airstrike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies. Market participants broadly expect the government to announce a 0.4 per cent-0.6 per cent slippage in fiscal deficit and that could result in 500 billion rupees-600 billion rupees ($6.97 billion-$8.37 billion) worth of additional borrowing. Yields are expected to rise on the back of increased borrowing but traders expect the RBI to continue to manage yields at least until the budget, which is likely to be announced on February 1. The consensus is for at least two more special OMOs before the end of the month. "The RBI has got themselves into a situation where they cannot stop now. Yields will jump the day they stop. There is a way to manage the markets and the RBI now has to live up to the expectations that it has built," a senior debt trader at a private bank said.

Indian bonds gain as India's central bank, RBI, widens third special Open Market Operation

Prime Minister <a href="https://www.wionews.com/india-news/prime-minister-narendra-modi-extends-new-year-greetings-to-bangladesh-pm-sheikh-hasina-271462">Narendra Modi</a> on Thursday said that agriculture has a key role to play in helping the country achieve its goal of becoming a <a href="https://www.wionews.com/business-economy/sensex-gains-by-321-points-as-nifty-closes-on-high-record-tata-motors-on-top-winner-271672">five trillion dollar economy</a> and the government was focusing on formulating a cash crop and export-centric farming system. 
 
Addressing a gathering here after distributing Krishi Karman Awards, Modi said that the effort of the Central government has led to an increase in the production and export of spices in the country. 
 
"The agriculture sector has a very important role to play in making India a five trillion dollar economy. For this, our government is focusing on formulating a cash crop and export centric farming system," he said. 
 
Modi said that production of spices has crossed 25 lakh tonne and their export has risen from Rs 15,000 crore to Rs 19,000 crore. 
 
He said the government was not only solving problems of farmers but also working towards a better future for them. 
 
"We have made arrangements so that farmers can sell their produce at any e-mandi across the country through the e-NAM network. We've also made facilities for cold storage," he said. 
 
Modi also said the government has started an immunization program for cattle. 
 
"We have started an immunization program for the cattle to ensure they do not have to spend a lot of money. We have also started PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evem Utthan) scheme so that the farmers can also become energy-producers and sell it to the grid," he said. 
 
The Prime Minister also talked about efforts being made by the Centre to solve specific <a href="https://www.wionews.com/india-news/congress-jharkhand-in-charge-rpn-singh-calls-meeting-of-mlas-in-ranchi-269947">issues of farmers</a> producing crops such as coconut, cashew, rubber, and coffee. 
 
Modi said that the government is working at three levels to strengthen fisheries - promoting fisheries in villages with financial assistance, modernization of boats under blue revolution scheme and construction of modern fishing infrastructure. 
 
He said that the Central government has also put aside Rs 7,500 crore as a special fund for building modern fishing infrastructure. 
 
He said people in the fishing trade have been connected to Kisan Credit Cards. 
 
"Fishing boats are also being modernized for deep-sea fishing and navigation devices are being installed on them with the help of ISRO," he said.

Prime Minister Narendra Modi on Thursday said that agriculture has a key role to play in helping the country achieve its goal of becoming a five trillion dollar economy and the government was focusing on formulating a cash crop and export-centric farming system.

Prime Minister Narendra Modi on Thursday said that agriculture has a key role to play in helping the country achieve its goal of becoming a five trillion dollar economy and the government was focusing on formulating a cash crop and export-centric farming system. Addressing a gathering here after distributing Krishi Karman Awards, Modi said that the effort of the Central government has led to an increase in the production and export of spices in the country. "The agriculture sector has a very important role to play in making India a five trillion dollar economy. For this, our government is focusing on formulating a cash crop and export centric farming system," he said. Modi said that production of spices has crossed 25 lakh tonne and their export has risen from Rs 15,000 crore to Rs 19,000 crore. He said the government was not only solving problems of farmers but also working towards a better future for them. "We have made arrangements so that farmers can sell their produce at any e-mandi across the country through the e-NAM network. We've also made facilities for cold storage," he said. Modi also said the government has started an immunization program for cattle. "We have started an immunization program for the cattle to ensure they do not have to spend a lot of money. We have also started PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evem Utthan) scheme so that the farmers can also become energy-producers and sell it to the grid," he said. The Prime Minister also talked about efforts being made by the Centre to solve specific issues of farmers producing crops such as coconut, cashew, rubber, and coffee. Modi said that the government is working at three levels to strengthen fisheries - promoting fisheries in villages with financial assistance, modernization of boats under blue revolution scheme and construction of modern fishing infrastructure. He said that the Central government has also put aside Rs 7,500 crore as a special fund for building modern fishing infrastructure. He said people in the fishing trade have been connected to Kisan Credit Cards. "Fishing boats are also being modernized for deep-sea fishing and navigation devices are being installed on them with the help of ISRO," he said.

Agriculture has major role in making India $ 5 trillion economy: PM Narendra Modi

Indian Finance Minister Nirmala Sitharaman on Tuesday unveiled Rs 102 lakh crore of infrastructure projects that will be implemented in the next five years as part of the government's spending push in the infrastructure sector.

WION Dispatch: Nirmala Sitharaman unveils Rs 102 lakh crore of infra projects for next 5 years

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