Market Pulse

Date Heading Details
24-Nov-2020   09:11 Hrs IST Govt's unprecedented reforms to usher in new era of growth: Amitabh Kant <p align="justify">Niti Aayog CEO Amitabh Kant has said that unprecedented reforms undertaken on both governance and economic fronts by the government will usher in a new era of growth and prosperity. He also stressed the need to increase expenditure on research and development and strengthen intellectual property rights (IPR) laws.</p><p align="justify">Referring to the reforms undertaken by the government in recent times, Kant said as the world battles contraction in economic growth, India has initiated reforms in key sectors including agriculture, labour and mining. He noted that labour reforms will help in making India a manufacturing hub and the country has also successfully improved its ranking in Global Innovation Index. He also pointed out that despite challenges at the global level, foreign direct investment (FDI) in India increased from $36 billion in 2013-14 to $74 billion in 2019-20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p align="justify">Noting that infrastructure will be a key driver of growth, Niti Aayog CEO said through the National Infrastructure Pipeline (NIP) which envisages $1.5 lakh crore of investments, 21 percent of those will come from the private sector. He stated that the project pipeline also has a high degree of readiness and 40 percent projects are already under implementation. He also said that asset monetisation will give robust long-term investment opportunities. Noting that European and American companies will look for alternatives owing to the US-China trade war, he said India can and must turn this crisis into an opportunity. <br></p>
23-Nov-2020   09:17 Hrs IST Govt's pandemic-induced reforms has potential to raise medium-term growth rate: Fitch <p align="justify">Fitch Ratings has said that the government's coronavirus pandemic-driven renewed reform agenda has the potential to raise India's medium-term growth rate. Nevertheless, it said there are also downside pressures to growth and it will take time to assess whether the reforms are implemented effectively. It also noted that raising medium-term growth rates under these circumstances will require reforms to support investment and boost productivity and it will take time to assess whether the reforms are implemented effectively.</p><p align="justify">According to Fitch, the pandemic will slow medium-term growth, as damaged corporate balance sheets are expected to dampen investment for years. It pointed out that renewed asset-quality challenges in banks and generally fragile liquidity for non-bank financial companies could also constrain growth prospects and jeopardise the stability of the medium-term government debt/GDP trajectory. It stated that several reforms passed by Parliament since the pandemic set in, could lift medium-term growth prospects, including the agricultural reforms to give farmers more flexibility over where to sell their produce. It added that stripping out middle men, as the reform allows, could improve farmer incomes while reducing consumer prices.</p><p align="justify">It further said the government also intends to privatise some state-owned enterprises, of which more than 200 are owned by the central government and 800 by state governments. It said a wide-ranging privatisation push could be transformative. It also said the process of reforms in India remains especially complex and implementation at times has proven difficult. <br></p>
20-Nov-2020   09:15 Hrs IST India's GDP likely to narrow appreciably to 9.5% in Q2FY21: ICRA
19-Nov-2020   09:12 Hrs IST India's GDP to see double-digit growth in FY22: Arvind Virmani
18-Nov-2020   09:13 Hrs IST Almost 99% of non-MSME companies unlikely to opt for RBI's one-time debt restructuring: Crisil
17-Nov-2020   09:11 Hrs IST Stimulus 3.0 supportive for growth, but fiscal impact unclear: Fitch Solutions
13-Nov-2020   09:23 Hrs IST RBI to conduct simultaneous purchase, sale of govt securities under OMO for 10,000 crore each
12-Nov-2020   09:25 Hrs IST India's GDP to contract 8.6% in Q2 FY21: RBI official
11-Nov-2020   09:25 Hrs IST Centre govt releases Rs 6,195 crore to states as revenue deficit grants
10-Nov-2020   09:25 Hrs IST Number of green shoots visible in economy five months after easing restrictions: SBI Research