The question of testing has been coming up, repeatedly, at health press conferences in Tamil Nadu. Health Minister C. Vijayabaskar has been assuring the audience, via televised speeches, that there has been no fall in the testing rate in the State. Tamil Nadu continues to be at the top of the testing table in the country, he has said, dismissing any contention that there has been a slackening in the number of tests. … [Read more...] about Is there still a case for testing contacts?
Aggregate demand and supply curve
Lifting demand and supplyIt is widely recognised that the present crisis has seriously impacted both the supply and demand side of the economy. The stimulus package effectively addresses both these aspects. Several measures have been announced to lift the sagging demand in the economy. It is important to point out that total effective demand is made up of demand for consumption, investment and intermediate goods. This has to be taken note of by those who consider only the cash in hand of consumers as the sole means for reversing the declining demand in the economy. Therefore, additional credit lines provided to micro, small and medium enterprises (MSMEs) or to street vendors or to farmers (additional credit of ₹2 trillion) will also surely contribute to the strengthening of aggregate demand in the economy. … [Read more...] about A well-balanced stimulus package
The decision comes after the Supreme Court on Thursday ordered the Railways and State governments to not collect train or bus fares from stranded migrants. The BEST administration has been criticised by activists and unions for not allowing this provision. … [Read more...] about BEST not to charge migrant workers for ride to railway station
India saw one of the most severe lockdowns in the world, which took a large toll on growth, says Shaun Roache, Chief Asia-Pacific Economist. You are looking at a 5% compression for India’s GDP growth. Can you tell us what exactly are the key headwinds that you are identifying? Three things have really changed since our last forecast, which was 1.8%. The first is obviously the lockdown. So we are now in lockdown 4.0 and across Asia Pacific, we estimate that one month of lockdown takes away three percentage points of full year GDP growth. The difference in India is that the lockdown was particularly severe. We calculated perhaps one of the most severe lockdowns that we have seen anywhere in the world and every additional month of lockdown has had an even bigger impact on growth. So the lockdown is the most important issue. Secondly, the impact that we have already seen is larger than we expected it to be. If you look at indicators such as the PMI for both manufacturing and … [Read more...] about Rising unemployment is the number one threat to India’s growth: S&P Global
We are very positive on mid and smallcaps as a long-term SIP theme where you invest every year for the next five years. It is not the time for lumpsum investment, S Naren, CIO, ICICI Prudential AMC, talks to Nikunj Dalmia of ET Now.Edited excerpts: This time six months ago, you said a fall was coming, fasten your seatbelts. The fall came on Friday. Do you think this is the beginning of a decline or is it that volatility is back and there is no risk per se? Market is still not cheap. If you look at the market, today we are closer to the all-time high than at a situation where we can say that the market is dirt cheap at this point of time. It is Nifty which is at an all-time high. Small and midcap stocks have corrected, the indices have corrected 25% to 30%. But if you look at the smallcap indices, they have gone up 200% in five years. Obviously, they have corrected 20% from the top but I do not think we are in a phase yet where we can say smallcaps is cheap, put your money in … [Read more...] about Remain cautious; don’t raise equity allocation now: S Naren, ICICI Pru AMC