Heena Sharma Blog

  Half of the manufacturing units in Maharashtra could remain shut for the next fortnight as the state’s new Covid-19 norms come into effect. These include appliance and apparel makers, which fall in the non-essential category. On Tuesday, Chief Minister Uddhav Thackeray announced a 15-day statewide curfew and a host of other restrictions to contain the spread of the coronavirus.   According to the order, all factories producing essential goods and services will remain operational at full capacity. Export-oriented units will remain open to fulfil their export obligations. Industries that require continuous manufacturing, too, can operate with 50 per cent workforce. Relaxation has also been provided for factories that offer in-house accommodation. But, all other factories must stop their operations for the next 15 days. “Around 50 per cent of the manufacturing units in Maharashtra could remain shut because of the state government’s new restrictions. Industry should hav...

  The government on Monday announced a Rs 18,000 crore scheme to augment public transport in urban areas. In the first paperless Union Budget , Finance Minister Nirmala Sitharaman said there will be 100 per cent electrification of broad gauge rail tracks by December 2023. She also said a record Rs 1,10,055 crore will be provided for railways, of which Rs 1,07,100 crore will be for capital expenditure in 2021-22. Read More

  Petrol and diesel prices rose sharply by 25 paisa per litre on Thursday, second consecutive day of similar rise, after oil marketing companies decided to break the pause in price revision in wake of a sudden spike in global oil prices . Accordingly, in the national capital, petrol was sold at the new record high level of Rs 84.70 from previous days Rs 84.45 a litre while diesel prices increased to Rs 74.88 per litre as against Rs 74.64 a litre a day earlier. Across the country as well pump price of petrol and diesel increased on Wednesday but the quantum varied depending on the prevailing tax structure in each state. Auto fuel price rise was on hold for last five days after petrol and diesel prices had increased on two successive days last Wednesday and Thursday taking gasoline to record high levels in Delhi while keeping its prices very close to record high levels in other metro cities. It again rose yesterday by 25 paisa per litre. Read More

  The government on Thursday decided to restore with immediate effect all existing visas, except electronic, tourist and medical categories, almost eight months after their suspension following the coronavirus outbreak and subsequent imposition of a nationwide lockdown. The Ministry of Home Affairs (MHA) also announced giving permission to all Overseas Citizen of India (OCI) and Person of Indian Origin (PIO) card holders and all other foreign nationals to visit India for any purpose, except on a tourist visa. The ministry said in a statement that in view of the situation arising out of the COVID-19 pandemic, the government had taken a series of steps to curtail the inward and outward movement of international passengers since February, 2020. The government has now decided to make a graded relaxation in visa and travel restrictions for more categories of foreign nationals and Indian nationals who wish to enter or leave India. Read More

In Prime Minister Narendra Modi 's virtual address to the Plenary session of the Indian Chamber of Commerce in Kolkata, he reached out to a major business chamber for the second time in less than 10 days. PM today said our economy is facing unprecedented challenge but is determined to convert them into an opportunity. "Mann ke haare haar, mann ke jeete jeet" — meaning, it is our will power and grit that decide how we deal with crises. People, planet and profit — This is a very crucial theme. Many think these cannot co-exist. But it is not so. They can and should work hand in hand. To explain it he used the example of LED blubs. He said LED has led to a saving of Rs 19,000 crore per year in electricity bills. This has been a relief on the pockets of people. It is good for environment. And, of course, with mainstreaming of LED bulbs, manufacturers' profits have also increased. Read More

Here is a round-up of articles from Indian news publications on how the country is dealing with the Covid-19 pandemic . From India’s first recession that is not driven by agri sectors, to missing-in-action Parliament, and why a study suggests blood cancer patients usually survive Covid — read these and more in today’s India dispatch. This will be India’s first recession driven by non-agri sectors: India’s economy is now set to lose 10 per cent of its gross domestic product (GDP), thanks to the after-effects of Covid-19. Eight states in India contribute to more than 50 per cent of its GDP. Within these eight states, almost 42 per cent of the state GDP is driven by areas that are now considered red zones. How is it going to play out, and what is India’s overall economic prospect looking? Read this interview with D K Joshi, chief economist of the rating agency CRISIL. Read More

Here is a round-up of important articles on Covid-19 from across Indian publications — From lockdown in Antarctica, to uncovering the regional parameters of Covid-19, and how vulnerable the homeless are — read these and more in today’s India dispatch. Expert Speak Relaxing labour laws can’t help industry in the long run; formalising the economy can: Though firms seemingly have an upper hand if labour laws — which protect workers’ rights — are relaxed, in reality, as a result of weak labour laws, firms will have to work with labour that “owes no allegiance to the organisation”. Read this interview with Errol D’Souza, professor of economics and director of Indian Institute of Management (IIM), Ahmedabad, on how the dilution in laws will end up making these organisations invest more in monitoring and enforcement to obtain productivity from precarious employment. Read More

The sharp hike in excise duty for auto fuels – petrol and diesel – is likely to add Rs 1.4 trillion to the government’s kitty, says the latest report by Barclays . The projection assumes that demand for both petrol and diesel will fall 12 per cent in FY20-21 as the economic activity in the country gets hampered on account of the Covid-19 related shutdown. Apart from the increase in central government taxes, several states and union territories, including Delhi, Haryana, Assam, Punjab, also have raised the state tax on fuel. This is likely to result in a modest rise in fuel prices to rise modestly, given that the increase in the government’s tax should not lead to higher fuel prices owing to the significant drop in crude oil costs through April. Read More

The central government has given relaxations to certain sectors to restart work amid the extended lockdown . In an interview to Megha Manchanda, Union Road Transport and Highways Minister Nitin Gadkari says he is optimistic about the sector meeting its project execution target in a time-bound manner. Edited excerpts: The government has decided to allow highway construction in pockets with zero or minimal Covid-19 cases. How do you plan to ensure safety, social distancing, hygiene, and food and shelter for migrant labourers? My ministry has made it very clear that all precautions required should be taken by all concerned — be it on project sites or any other place. Which projects will be given priority, when it comes to starting construction? I have asked the road ministry, NHAI (National Highways Authority of India), and NHIDCL (National Highways and Infrastructure Development Corporation) to grant the approvals, and complete other desk work. Read More

As of Tuesday noon, the total number of confirmed Covid-19 cases in the country has reached 10,453, and fatalities 358, while 119,682 people have died and confirmed infections have reached 1,924,927, globally, according to Worldometer. Even before a formal announcement of the nationwide lockdown extension, 11 states and Union Territories had already announced extension of the lockdown till April 30. These were Delhi, Maharashtra, Telangana, Punjab, Odisha, Tamil Nadu, Karnataka, West Bengal, Arunachal Pradesh, Pudduchery and Mizoram. And, considering the current scenario of mounting cases in the country, Prime Minister Narendra Modi has also officially announced the extension of the 21-day nationwide lockdown, till May 3, in a televised address to the nation at 10 am. Read More

The nationwide lockdown to prevent the spread of the coronavirus pandemic would remain in force till May 3, said Prime Minister Narendra Modi on Tuesday, as the number of people suffering from the disease in India touched 10,453 and deaths topped 358, according to Worldometer. “In view of all suggestions, it has been decided that the nationwide lockdown would be extended until May 3. This means we all will have to stay indoors, in a lockdown, until May 3 — with the same discipline and resolve that we have shown so far," said PM Modi in a televised address to the nation at 10 am. In his address, the PM said that we would have to keep an eye on newer hotspots and take stringent measures to curb the spread. Read More

As the Centre weighs the economic costs of the 21-day lockdown , and a calibrated exit from it April 14 onwards, Vice President M Venkaiah Naidu on Tuesday said health concerns should take precedence over that of economic stabilisation in deciding the post-lockdown roadmap. In a statement on the completion of two weeks of the lockdown today, Naidu said the third week of the lockdown, which starts Wednesday, would be crucial for decision making on the exit. The Vice President said that the data regarding the extent and rate of spread of virus infection will have a bearing on the exit strategy. He appealed to the people to abide by whatever decision follows on April 14, and cooperate with the same spirit that has so far been demonstrated even if hardships were to continue after April 14. Read More

The coronavirus (Covid-19) pandemic is likely to hit the global economy, including India, hard over the next few months. With nearly 75 per cent of the Indian economy in lockdown mode, Nomura has lowered the 2020 GDP growth forecast to -0.5 per cent year-on-year (y-o-y) from 4.5 per cent. “We now expect GDP growth to slide from 4.7 per cent y-o-y in Q4 2019 to 3.1 per cent in Q1 and plunge to -6.1 per cent in Q2, when both domestic and external demand will weaken. We are building in a sequential pickup in the second half of 2020, but the pace of recovery is likely to be much weaker given some lasting damage to potential output,” wrote Sonal Varma, managing director and chief India economist at Nomura in a co-authored report with Aurodeep Nandi titled 'COVID-19’s impact on the world economy'. In its worst case projection if the Covid-19 pandemic becomes a full-blown credit crisis for India, corporates find it difficult to stay afloat, and banks struggle with the balan...

A rate cut by the Reserve Bank of India (RBI) was much expected this time and the Governor did not disappoint. The aggressive cut of 75 basis points (bps) in the repo rate is commendable, as it provides the balm required to revive the economy. This is evidently meant to counter the negative impact of the coronavirus (Covid-19) pandemic . Governor Shaktikanta Das was very prudent in not giving a forecast for growth or inflation because, as he rightly stated, with things changing so fast, it is not certain how long the threat will last and how its spread and depth will impact the economy. Therefore, the policy is directed towards the immediate problem of mitigating the damage caused by the virus. The RBI has decided to use a novel way to influence interest rates. The repo rate has come down to 4.4 per cent, while the reverse repo rate is now 4 per cent with a difference of 40 bps. The idea is to ensure that banks do not deposit surpluses in the reverse repo auctions, which is av...

As India reported 14 more cases of coronavirus infection on Tuesday and the situation in Europe worsened, the government suspended all the visas and e-visas granted on or before March 11 to French, German, and Spanish nationals in a bid to contain the spread of the deadly virus in the country. This after the government earlier suspended visas and e-visas to citizens of China, Italy, Iran, Japan, and South Korea. The number of coronavirus cases in India jumped to 61 after fresh cases were reported from Kerala (eight), Karnataka (three), and Maharashtra (three). In Bengaluru, Dell — a US-headquartered computer technology company — advised its employees to work from home in India after one of its techies with travel history to Texas, along with his wife and daughter, was tested positive. “We can confirm two employees of Dell India were tested for the COVID-19 virus following their return home from the United States – including a visit to our headquarters in Round Rock, Texas. O...

On November 8, 2016, Prime Minister Narendra Modi announced to the nation that Rs 500 and Rs 1,000 currency notes — 86 per cent of all currency notes in circulation in value — would cease to be legal tender. The stated objectives were unearthing black money, cracking down on counterfeit currency, and choking terror financing. Unsurprisingly, there were strong reactions both in favour of and against the unprecedented move, which would come to be known as ‘ demonetisation ’ or ‘ note ban ’. While some hailed it as a courageous step against impropriety that was hurting the economy, others saw the move itself as disastrous for the economy. In the months that followed, even as reports suggested that the government had not come any close to achieving its stated objectives, the government was seen patting itself on the back for the country’s move towards becoming a ‘cashless’ economy, or, as the PM said, a ‘less-cash’ economy. Many called this an act of ‘moving goal posts’ and rushe...

The Bharatiya Janata Party’s (BJP’s) less than satisfactory performance in the Assembly elections of Haryana and Maharashtra has once again raised questions on its inept handling of the economy, triggering calls for more focus on it, particularly the rural sector. The sector seems to have played a decisive role in several seats in both the states. Its showing has indicated the continuing slowdown in demand, wages, and consumption in rural areas has started affecting politics. In Haryana, the ruling BJP was marginally short of a majority, just months after it won all the 10 Lok Sabha seats in the 2019 Lok Sabha elections, riding on the Modi wave, while in Maharashtra, the BJP-Shiv Sena saw its seat count go down by 27 from the Assembly elections in 2014. Sources in the ruling party, its ideological fountainhead Rashtriya Swayamsevak Sangh, and sister organisations admitted voters had started raising questions on the government’s handling of economic issues, particularly thos...

Compared to December 2017, the real effective depreciation of Indian rupees is between six and seven per cent, says an IMF estimate. Broadly since the beginning of the year, Indian rupee has lost about 11 per cent of its value in nominal terms vis a vis the US dollar", said IMF spokesperson Gerry Rice, responding to a question on the fall of the Indian currency in the last few months. He, however, said the currencies of many of India's trading partners, including those in the emerging markets, too have depreciated against the dollar. As a result, so far this year the real effective depreciation of the Indian rupees compared to December 2017 is, by our estimates, between six and seven per cent, Rice said. Read Complete Article  

In the eight years from 2004, about 20 million women (the size of the combined populations of New York, London and Paris) vanished from India's workforce, the World Bank estimates Current Affairs News : There are two things New Delhi marketing executive Khyati Malhotra never leaves home without: Her taser and a pepper spray. It’s just part of the investment she makes to stay safe in a country where crimes reported against women have surged over 80 percent in a decade and deadly cases of sexual violence often roil cities and villages. So a chunk of Malhotra’s salary goes into a car and driver to avoid the dangers of public transport, where women are cat-called, groped and assaulted. In Bangalore, Vidya Laxman, an executive at a multinational in India, pays for a battalion of household help and security cameras to keep her children safe. Sajna Nair of Delhi figures she’s lost almost $200,000 in earnings after quitting a bank job because she couldn’t find safe childc...