Job loss bodes ill for economy, spurring demand is key, says Mahesh Vyas
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April’s labour participation rate was lower than in March 2020, says CMIE’s Vyas.
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April’s labour participation rate was lower than in March 2020, says CMIE’s Vyas. Rising unemployment including among the salaried class and shrinking real incomes have led to a lack of demand that bodes ill for the economy, said Mahesh Vyas, managing director at the Centre for Monitoring Indian Economy (CMIE).
“Unemployment rising is not a good sign at all for the economy,” he said. “Labour participation rate recovered soon after the lockdown was eased last year, but has run out of momentum even before it could recover fully,” Mr. Vyas added.
Output Of Eight Core Industriesâ Surged To A 32-Month High Of 6.8 Per Cent In March
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In a positive development for the economy, the output of eight core industriesâ surged to a 32-month high of 6.8 per cent in the bygone March aided by a jump in Government s expenditure and a statistical base effect,
The Hindu Businessline.
Compared to this, the output from the eight core sector had contracted 8.6 per cent in March last year. It should be noted that even in February 2021, their output had contracted 3.8 per cent.
The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, steel and electricity.
Congress leader and former Union Minister P. Chidambaram. File
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The Hindu
Congress leaders stepped up their attack on the Modi government a day after the latest numbers for industrial output and retail inflation came out.
Congress leaders on Tuesday targeted the Narendra Modi government over the country’s economic indices, with former finance minister P. Chidambaram accusing the government of “colossal mismanagement” since the 2016 note ban.
Congress leaders stepped up their attack on the Modi government a day after the latest numbers for industrial output and retail inflation came out.
In a series of tweets, Mr. Chidambaram said the Prime Minister neither heeded well-meant advice of distinguished economists nor tolerated criticism. Quoting the classic Tamil text
Rating agency Standard & Poor’s today said the systemic risk facing banks in India is likely to remain high in the wake of the second wave of Covid-19 infections and the high proportion of weak loans. This is despite India s economic recovery, though the central bank and the government’s efforts to cushion the effects of the economic crisis will limit the stress on the balance sheets of these banks. The control of Covid-19 remains a key risk for the economy. New infections have spiked in recent weeks and the country is in the middle of a second pandemic wave. Some targeted lockdowns have already been implemented and more will likely be needed. The impact of broader lockdowns on the economy could be substantial, depending on their length and scope, S&P said in a statement.