Market Pulse

Date Heading Details
03-Jul-2020   09:10 Hrs IST India's GDP growth may contract by 6.4% in FY21: Care Ratings <p align="justify">Care Ratings in its latest report has revised India's Gross Domestic Product (GDP) growth forecast for the current financial year (FY21) to (-) 6.4 percent as economic activity continues to be under restriction due to the lockdown on account of the Covid-19 pandemic. In May, it had projected a decline in GDP growth of 1.5-1.6 percent in FY21. It said the sharper fall in real GDP also means that the nominal GDP for the year will also decline assuming inflation of 5 percent which in turn will affect the projected fiscal deficit number of the central government which will be in the region of 8 percent for FY21. </p><p align="justify">The report said given that the nation is into a lockdown for July too with several restrictions on resumption of services in particular as well as movement of people, the cutoff date for normalcy will spread into the latter part of the third quarter and more likely to the fourth quarter. In FY20, the country's economy grew at an estimated 4.2 per cent, almost a decade low. It, however, said the positive growth will come from only agriculture and the government sector. </p><p align="justify">According to the report, services like hospitality, tourism, entertainment, travel would take a much longer time pan India to resume anywhere close to normal with interstate restrictions being the norm for the next quarter or so. It also said the restriction on movement of people translates into fall in demand for goods and services and further exacerbates the low consumption growth syndrome that pervaded for three years now. Job losses and pay cuts will add to the stickiness in spending even during the festival time. It is assumed that good rural income cannot compensate for this loss of purchasing power which is topped with uncertainty. <br></p>
02-Jul-2020   09:28 Hrs IST Govt committed to undertaking reforms to make tax administration simple for businesses: Nirmala Sitharaman <p>Finance Minister Nirmala Sitharaman on the third anniversary of Goods and Services Tax (GST) has asked GST officers to foresee the issues faced by domestic businesses and address them proactively so that they can compete on a global scale and build a self-reliant India. Sitharaman also said the government is committed to undertaking reforms to make the tax administration simple for businesses, particularly the micro, small and medium enterprises (MSMEs). </p><p>She said more efforts are needed to ease tax compliances for the businesses, while lauding the measures such as filing nil tax returns through SMS. Asking taxmen to focus on the clarion call by Prime Minister Narendra Modi for an ‘Atmanirbhar Bharat', she said for this motto of self reliance tax, especially GST, administration will have a large role to play.</p><p>GST, which subsumed over a dozen local taxes, was introduced on July 1, 2017. Since then the GST process has been simplified and return filing made easy especially for small businesses.&nbsp; Besides, the Minister also said the COVID-19 pandemic has led to some disruptions in the economic activities in the country. She also congratulated Central Board of Indirect Taxes and Customs (CBIC) and its officers for handholding taxpayers during this crucial time and disbursing record amount of refunds to ease their cash flow.<br></p>
01-Jul-2020   09:25 Hrs IST Fitch cuts India's growth projection to 8% for FY22
30-Jun-2020   09:14 Hrs IST States' GSDP likely to contract up to 14.3% in FY21 due to Covid-19: Ind-Ra
29-Jun-2020   09:24 Hrs IST Indian economy in deep trouble; growth likely to contract 5% this year: S&P Global Ratings
26-Jun-2020   09:07 Hrs IST Keen to focus on sectors where India has competitive advantage: Piyush Goyal
25-Jun-2020   09:26 Hrs IST Indian economy to contract by 4.5% in 2020: IMF
24-Jun-2020   09:10 Hrs IST Govt, RBI's prompt policy measures helped reinvigorate economy with minimal damage: Finance ministry
23-Jun-2020   09:26 Hrs IST India will transform into middle-income economy by 2030: Niti Aayog vice chairman
22-Jun-2020   09:25 Hrs IST Demand in economy will rise when uncertainty is not there: CEA Subramanian