oppn parties No Reason Not To Be Positive About Economic Growth

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
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.