Ramey can government purchases stimulate the economy

Government has said Insurance Intermediaries will get 100% FDI while local sourcing norms will be eased for FDI in Single Brand Retail sector. It has proposed to increase the Statutory limit for FPI investment in a company from 24% to sectoral foreign investment limit. FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs. It has also proposed to NRI-Portfolio Investment Scheme Route to be merged with the Foreign Portfolio Investment Route. … [Read more...] about 50 days of Modi government: How business and economy are shaping

By Americai V Narayanan & Kavya Narayanan Measures to mitigate the Covid-19-instigated lockdown and subsequent economic shutdown announced by finance minister Nirmala Sitharaman earlier this month have woefully fallen short of stimulating demand so far. Even the fiscally conservative President Donald Trump has announced nearly $300 billion in direct cash transfers to US citizens at the bottom of the pyramid. Prime Minister Narendra Modi would do well to have his government attack the problem from the demand side by putting money directly in the hands of the people. However, a valid concern is if there is enough fiscal room for GoI to implement such a direct cash transfer scheme. To stimulate demand without straining government resources in the long run, one can consider immediate cash transfers as an interest-free loan, with repayment in the form of labour through anational employment guarantee scheme (NEGS). NEGS should especially be targeted towards urban and semi-urban … [Read more...] about Government must balance fiscal prudence with people’s immediate necessities

“In OMSS, traders got wheat cheaper by Rs 200-250 per quintal and many stayed away due to the coronavirus pandemic. In OMSS, we have to sacrifice on quality as the FCI sold wheat of the previous season whereas in mandis fresh produce is available,” he added. … [Read more...] about Private traders stay away from wheat purchase this Rabi season in Punjab

In a letter to the Speaker, Mr. Patil said Mr. Kageri had issued an order preventing him and the panel members from conducting the probe into alleged misuse of money by government departments in the procurement of health equipment for handling COVID-19. Mr. Kageri had responded to it saying that the restrictions were only on account of the lockdown. … [Read more...] about Congress alleges corruption in PPE purchase

The interest rate on bank fixed deposits as well as lending rates are on decline with the Reserve Bank of India lowering the key short-term lending (repo) rate. The repo rate is currently at historic low of 4 per cent. … [Read more...] about Government to withdraw 7.75% Savings (Taxable) Bonds scheme