Economy

Date Heading Details
03-Jul-2020   13:27 Hrs IST India's service sector remains mired in deep downturn during June <DIV align=justify>India's service sector remained weak in the month of June, as activity fell at another substantial month-on-month rate amid the ongoing economic disruption caused by the coronavirus disease 2019 (COVID-19) pandemic. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index was at 33.7 in June from 12.6 in May. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - was at 37.8 in June from 14.8 in May.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The report also noted that although the downturn lost further momentum in June, it remained excessively strong as the COVID-19 pandemic curtailed intakes of new work and disrupted business operations. The slower rate of decline was reflective of some stabilisation in activity levels, with around 59% of firms reporting no change in output since May. Meanwhile, only 4% registered growth, while 37% recorded a reduction.</DIV><DIV align=justify>&nbsp;</DIV><DIV align=justify>On the price front, Indian service providers reported a reduction to their input costs in June. Where a decrease was reported, firms attributed that this general reduction in running costs due to lower activity levels at their units. Although the rate of deflation eased considerably, it was historically marked. Lower expenses were passed through to clients via discounts in June. Selling charges fell modestly and at a similar rate to that seen in May.</DIV><DIV align=justify><BR></DIV><DIV align=justify>&nbsp;</DIV>
03-Jul-2020   11:43 Hrs IST World Bank to provide $750 million budget support to 15 lakh MSMEs <p align="justify">World Bank Country Director in India Junaid Ahmad has said that the World Bank will provide a $750 million budget support to 15 lakh Micro, Small and Medium Enterprises (MSMEs) to increase liquidity access for viable small businesses impacted by nationwide lockdown due to Covid-19 outbreak. Lauding the government's support package of Rs 3.70 lakh crore for the MSME sector, which included Rs 3 lakh crore collateral-free loans for small businesses, he said the RBI also has used different instruments to infuse liquidity in the market either through banks or SIDBI.</p><p align="justify">Ahmad has stated that the $750 million support is in addition to the $2 billion funding the World Bank has already announced for the social and health sector. He said this takes the total lending to India due to Covid-19 to $2.75 billion within three months. He noted that the World Bank's MSME Emergency Response program will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. He added that the MSME funding is under the multilateral lender's Development Policy Loan, which is a direct budget support. </p><p align="justify">He further said ‘in development policy loans, we do not fund a specific expenditure... we give direct budget support when the government puts together policy framework that we believe deserve support. He also said the government steps would help unlock liquidity for MSMEs, strengthen NBFCs and small finance banks and enable inclusive access to financing.<br></p>
03-Jul-2020   10:07 Hrs IST India needs FDI worth Rs 50 to 60 lakh crore to accelerate coronavirus-hit economy: Nitin Gadkari
03-Jul-2020   09:26 Hrs IST India's trade deficit with China reduces to $48.66 billion in FY20
03-Jul-2020   09:10 Hrs IST India's GDP growth may contract by 6.4% in FY21: Care Ratings
02-Jul-2020   13:26 Hrs IST GST revenue collection stands at Rs 90,917 crore in June
02-Jul-2020   11:17 Hrs IST CAIT suggests measures like technical audits, waiver of late fees to broaden GST base
02-Jul-2020   10:03 Hrs IST Indian banks to face heightened asset quality, earning pressure for at least 2 years: Fitch Ratings
02-Jul-2020   09:28 Hrs IST Govt committed to undertaking reforms to make tax administration simple for businesses: Nirmala Sitharaman
02-Jul-2020   09:11 Hrs IST NBFCs' NPA to increase to 5-7% in FY21: ICRA