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News Snippets

  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
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The Economy Is Tottering

By Linus Garg
First publised on 2020-06-01 13:28:27

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

The GDP figures for the fourth quarter of the current financial year released by the NSO paint a grim picture. Keeping in line with the situation on the ground, the revised data of the first three quarters of this financial year shows that the economic slowdown, even before the coronavirus crisis, was more pronounced than was previously estimated. When the data for the first three quarters was released at the designated time in 2019 and early 2020, it was not in tune with the situation on the ground. Most sectors of the economy were suffering from a lack of demand and inventory was piling up. Even the revised data for those quarters released now do not show the correct picture. Hence, the economy had slowed down considerably even before the coronavirus crisis hit it.

The data released now cannot also be relied upon in full because the timeline for submitting financial returns has been extended due to the pandemic. Hence, the current data has been released with limited inputs and is subject to downward revision once the full set of inputs is available. Yet, the data clearly shows that the economy is heading downhill at a rapid speed. The eight core industries contracted by 38 percent. Private consumption slumped to just 2.7 percent from 6.6 percent in the Oct-Dec quarter. Imports (leaving out oil and gold) went down by 52 percent while exports declined by 60 percent. Credit off-take is not happening as both businesses and individuals are wary of borrowing in these difficult times.

Growth in gross value added was just 3 percent but if agriculture, public administration and defence are left out, the rest of the economy provided just a depressing 1 percent growth to the GVA. Manufacturing has now contracted for three straight quarters, and the pace of contraction has become deeper in each successive quarter. Similarly, the construction sector has contracted for two straight quarters. Trade, hotels and communication, finance, real estate and professional services have all slowed down considerably. The power sector has shown some improvement (it contracted by 22.8 percent in April when the country was under full lockdown but improved to a contraction of 14.9 percent when restrictions were eased in May). But only the full data of the April-June quarter will show the true impact of the lockdown. It is now clear that the full years' data for the financial year 2019-20 will show considerably lower growth that was previously expected. It remains to be seen whether the economic package pushes up demand and revives the economy.

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