By Rahul MunjalNew Delhi: Last two decades have seen phenomenal growth in India’s infrastructure and power sectors. However, the economic philosophy and financing instruments that drove this transformation has run their course and a fresh impetus is needed to sustain the momentum. India’s RE sector is no exception to this risk of slow down. Various structural issues have caught up with the India’s once booming sectors and for power and RE sector, it is the health of DISCOMS. As on date accumulated losses of discoms along with regulatory assets have reached INR 1.65 lakh crores and trade payables are above INR. 4 lakh crores. Several schemes to address this issue have been to no avail. Although the package of Rs. 90,000 crores under ‘Atmanirbhar Bharat’ by Central Government is in the right spirit, it is grossly inadequate to relieve the financial stress on Discoms, which in any case are facing challenges in servicing debt.The alternatives for discoms … [Read more...] about OPINION: Atmanirbhar power sector and India’s GDP
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‘Limited fiscal support’“India imposed one of the most stringent lockdowns worldwide in 2Q20 (April-June) and domestic demand fell massively. Limited fiscal support, fragilities in the financial system, and a continued rise in virus cases hamper a rapid normalisation in activity,” Fitch said. … [Read more...] about ‘Global economy to contract 4.4%, China to grow at 2.7%’
India’s economy contracted 23.9% in the June quarter in the steepest pace in four decades. It was the worst performance among G20 nations, and significantly below expectations of most economists, as the stringent covid-19-induced national lockdown created a double-whammy through both a supply and demand side shock as businesses shut operations while consumers were forced to stay home. … [Read more...] about FY21 may see worst ever decline in GDP
"Though China became a market economy much earlier than India, they started accessing funds through capital markets only in the past two decades,” said U R Bhat, director of Dalton Capital India. … [Read more...] about Once nearly half, China’s market capitalisation is now 5x India’s
Deng transformed agriculture first and then took on the industrial sector. He opened up the latter to foreign capital while making room for the growth of village and local enterprises. Jiang Zemin, Hu Jintao and now Xi Jinping have continued to follow Deng’s principles, but with some adjustments. China’s economic growth was also made possible by a very large net inflow of foreign direct investment, a sign of confidence in the Chinese economy by outside investors. China is the leading nation in exports and the second largest economy in the world. The country’s per capita income more than quadrupled, ($5,720 equivalent to about PPP $13,000) and abject poverty was completely eliminated (though income inequality increased). China’s Human Development Index has also risen from .423 in 1980 to .719 in 2013, according to the United Nations Development Programme 2014. … [Read more...] about Can India catch up with China?