ECONOMY by VIVEK SINGH

2021-06-13 16:05:31 A good article to read on the present economic situation and impacts of second Covid wave.

Sharpening income inequalities telling story of 'uneven' recovery: Subbarao | Business Standard News
https://www.business-standard.com/article/economy-policy/income-inequalities-telling-story-of-uneven-economic-recovery-ex-rbi-guv-121061300255_1.html Open / Comment

2021-06-11 15:27:58 India's Agriculture Trade (Summary for 2020-21):

* After remaining stagnant for the past three years ($ 38.43 billion in 2017-18, $ 38.74 billion in 2018-19 and $ 35.16 billion 2019-20), the export of agriculture and allied products during 2020-21 jumped to $ 41.25 billion, indicating an increase of 17.34%.

* India’s agricultural and allied imports during 2020-21 are $ 20.67 billion. Despite COVID-19, balance of trade (exports minus imports) in agriculture in 2020-21 is $ 20.58 billion.

* Largest markets for India’s agriculture products are USA, China, Bangladesh, UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran and Malaysia.

* Among the key agriculture commodities exported from India were marine products, rice, buffalo meat, spices etc.

* The organic exports during 2020-21 were $ 1.04 billion as against $ 0.69 million in 2019-20, registering a growth of 50.94%.Organic exports include oil cake/ meals, oil seeds, cereals and millets, spices and condiments, tea, medicinal plant products, dry fruits, sugar, pulses, coffee etc. Open / Comment

2021-06-10 16:11:07 MSP does not have any legal backing till now and farmers can't demand it as a legal right. It is just government policy and an administrative decision to purchase some food grains at MSP. And govt can't even force private players to procure at MSP.

Among several criteria for recommending the MSP, the most important one is the cost of production and margin/profit on it. Govt. promises minimum 50% over cost of production (All-India weighted average Cost of Production). MSP is same for all over India.

Govt. announces MSP before the sowing season. Open / Comment

2021-06-09 07:12:49 Open / Comment

2021-06-08 07:20:20 Source: Indian Express
You just need to know that RBI conducts "Consumer Confidence Survey" and based on that it creates two indices CSI and FEI. No need to go into detail of this news article. Just read the highlighted part Open / Comment

2021-06-06 17:45:05 Base Erosion and Profit Shifting and Global Minimum Corporate Income Tax (both are linked) will be explained in the coming week on Youtube. Open / Comment

2021-06-06 06:52:36



In case Google establishes a subsidiary company in India then that subsidiary of Google is basically an Indian Resident Company and normal Corporate Income Tax will be applicable on that subsidiary as per the Income Tax Act 1961. The business and accounts of parent and subsidiary is totally separate. Open / Comment

2021-06-06 06:51:04 Source: Hindu
The issue of Digital Services Tax/Equalization Levy/ Google tax and the tussle between India and US trade has been explained in the below video.
This news was also reported in Indian Express two days back. Open / Comment

2021-06-05 07:39:23 Source: Indian Express
It is to be noted that now "Bank rate" is not used by RBI for lending purpose. This rate is just used to impose penalty (penal rate) in case banks fall short of reserves.
"Accommodative stance" means going forward RBI may reduce repo rate or use other measures/tools to pump more liquidity in the economy to "revive and sustain growth" because of the covid-19 induced slowdown. Open / Comment

2021-06-04 18:16:04 Source: RBI Annual Report 2020-21
If a bank is solvent (has not gone bankrupt) but facing liquidity (cash) problems then only RBI acts as Lender of Last Resort.
If a bank has gone bankrupt then RBI may not protect it.
In RBI's various manuals its just written that RBI will act as lender of last resort for BANKS, nowhere its written that it will act as lender of last resort for NBFCs. But two years back RBI's Deputy Governor made a statement that RBI may act as lender of last resort for NBFCs. Open / Comment