oppn parties No Reason Not To Be Positive About Economic Growth

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  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
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  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
oppn parties
No Reason Not To Be Positive About Economic Growth

By A Special Correspondent
First publised on 2022-01-02 07:00:05

Prime Minister Modi was not wrong when he said that there would be no brake on India's economic progress despite the Covid disruption. All economic indicators show that Indian economy is hugely resilient and has bounced back spectacularly after the prolonged fall in demand in 2018 and 2019 and then the Covid related disruptions in 2020 and 2021.

The farm, manufacturing and services sector have led the growth this year. Demand has been led by the festival and the marriage season. GST collections have remained above or near Rs 1.30 lakh crore for the last several months and the robust revenue collection has allowed the government to bring down the fiscal deficit to just 46 percent of the figure earmarked for the full FY2022. Auto sales have topped 30 lakh units in 2021, only the third time in history, despite the shortage of chip and the Covid situation. Cement, steel and power have also bounced back smartly. Exports have also grown at an impressive rate.

With the agitation against the farm bill now on hold, one thinks that an amicable solution will be found to the dispute. Hence, the farm sector will once again lead the charge in 2022. But India will have to find a way to persuade farmers against growing just MSP-related products and focus more on pulses and oilseeds to bring down their prices. Smart farming, rather than growing produce just to sell it to the government at MSP (a good percentage of which then rots or is eaten by rats in FCI godowns), must be the mantra from now on. This will need convincing and breaking down of the middle-men cartels and the government must invest political capital in this rather than bring in new farm bills. Once the farmers see the profits, they will come on board.

The party might be spoiled only by the surge in Covid infections and the Omicron scare, which might lead to another round of debilitating restrictions for the economy, commodity prices and maybe, runaway inflation. Inflation, though showing a rising trend, is till now under control. With the easing of crude prices, there is little chance now of further rise in pump prices in a way they did in 2021. If diesel prices do not rise further, transport costs will remain under control, leading to a reversal of the situation. Food inflation is likely to come down if the farm sector performs well. If the Covid situation does not get out of hand, the Indian economy is likely to witness a strong recovery in the coming months.