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
After India recorded its worst GDP contraction during April-June quarter, rating agency Fitch has revised its growth outlook for the Asian economy. The Indian economy is likely to contract 10.5 per cent in this financial year 2020-21, Fitch said. Previously, it had projected 5 per cent contraction. GDP growth plunged 24 per cent in the first quarter of this fiscal year, with trade, transport, and hotels sector contracting by 47 per cent while manufacturing shrunk 39 per cent. Also, two crucial demand levers, private consumption (contributing 56 per cent to growth), and investments (contributing 32 per cent to growth) saw a sharp fall; only government spending which contributes a mere 12 per cent to growth witnessed a rise. “India recorded one of the sharpest GDP contractions in the world in 2Q20 (1Q of the 2020 fiscal year). GDP shrank a staggering 24% yoy – almost double our expectation embedded in the June GEO (Global economic outlook) – amid the imposition of one … [Read more...] about Worst GDP slump will see growth plunging by 10.5% in FY21: Fitch
“In light of the Q2 (June quarter) GDP report, we are making further significant adjustments to our GDP forecasts for India. We now forecast Q3 (September quarter) 2020, and Q4 (December quarter) 2020 at GDP growth of -13.7% yoy and -9.8% yoy, respectively (compared to -10.7% yoy and -6.7% yoy previously). Our estimates imply that real GDP falls by 11.1% in calendar year 2020, and by 14.8% in FY21 (vs growth of -9.6%, and -11.8% in our previous forecasts),” Goldman Sachs said in a research note. … [Read more...] about FY21 may see worst ever decline in GDP
Columnist Aakar Patel wonders if the government has given up its focus on economic growth because it it not something Prime Minister Modi has been able to fully understand. … [Read more...] about Dom’s Take: Fall in GDP: Why blame corona?
"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