Indian Economy : News,Discussions & Updates
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Fuel imports could be managed but we need to move daring radical moves.
Set a fixed deadline to stop buying all types of public transport systems running on diesel/petrol or any other type of imported fuel. Make another deadline for stopping the production of diesel/petrol vehicles. That is the way forward. Go electric with full thrust.
Set a fixed deadline to stop buying all types of public transport systems running on diesel/petrol or any other type of imported fuel. Make another deadline for stopping the production of diesel/petrol vehicles. That is the way forward. Go electric with full thrust.
Article talks about Helicopter Money, should India go for it or not with technical details of little to no use for a common reader.
What's Helicopter Money?
Helicopter Money is distribution of money directly to public by printing it instead of borrowing.
If we look at India's budget for 2020-21 we will see that total receipts are 22 Lakh 45 thousand crores and total expenditure is 30 Lakh 40 thousand crore. Which means we are spending more than we earn via taxes and other methods so where does that money come from? Borrowing (debt).
Now with this Covid 19 situation we entered lockdown, which means little to no economic activity but their liabilities (rent, loan, salaries, depreciation etc) still exists. How will they pay for them with factories locked? Therefore economic package is announced to hold thier hand.
This package has two components-
Fiscal Component - This is expenditure of government.
Monetary Component - This is controlled by Central Bank (RBI) about money in system.
That 21 Lakh Crore package is almost entirely based on Monetary component with little around 1-1.5 crore on fiscal front. So government has to spend actually 1-1.5 lakh core out of 21 Lakh Crore rest of it will be loans, relaxations, guarantees, mostly accounting exercise.
Now since economic activities are low government is not going to get much taxes therefore they don't have much room for fiscal stimulus. They already needed huge debts to pay for budgeted expenditure so they presented this mini budget where funds are routed, expenditure of something to be counted under this head to give it a nice big number. This number helps them politically and invokes investors/public confidence.
Since Covid imposed lockdown led to large scale job loss due to migration focus is to kick start industries, once people get job they will start consumption and economy will improve but this will take time as people has to migrate back, get salary and start consumption. During this time government will take the pain instead of businessman.
Helicopter Money will kick start demand as it will put cash directly into the hands of people and they will start buying almost instantly. This has its own set of problems. First Indian government don't have this much money for cash hand outs to this large population. Where will that money come from? Ideally borrowing but he is suggesting we should print it.
If we print money we won't increase our debt but we can't print it because it will lead to depreciation of Rupee in Global Market which will have long term impact. Increase money in hands of public will lead to inflation as more people will be chasing same number of goods so consumption will not increase much either. Helicopter money will be a solution only when there is no other conventional option left because its impact will be serious on economy.
Hope I tried to explain it a bit in layman terms. I am no economist, just been reading about Indian economy and economy in general from sometime.
MODI AND BALAKOT AUNTY WILL SAVE OUR ECONOMY, THEY CAN HANDLE THE ECONOMY BETTER THAN MMS AND CHIDDU. COVID19 WILL BE HISTORY AND WE WILL BE A 5 TRILLION ECONOMY IN 2025 AS ALL INDUSTRIES WILL MOVE FROM CHINA TO INDIA.
US can do it, so can China for most part. If we become more self sustainable i.e our Make in India program succeeds then yes printing might solve some of the problems. As you pointed out , taming inflation should be our focus if not we will end up pushing more ppl into poverty.
Yeah somebody remembers all those bad loans that banks are saddled with............we could have had some cushion to fall back on if we were disciplined enuf.
Whoever told you this charlatan was an economist? He came to the limelight with UNDYTV as a psephologist & got every election result wrong so much so that Prannoy Roy stopped doing in house predictive election polls . Since then he's tried to be a lot of things including a social activist, a politician, an economist, Salim Yadav, etc.
And I thought all the recent investments into Jio was due to 5G. Me and my economic predictions. 
JioMart website goes live across 200 cities in India
The wider launch of the service comes after the company began testing its home delivery service in Navi Mumbai, Thane and Kalyan in late April
ETtech | Updated: May 25, 2020, 00:09 IST
Illustration: Rahul Awasthi
Reliance Jio’s online shopping portal, JioMart, is now open for orders in 200 cities including all metros and places such as Mysuru, Visakhapatnam, Coimbatore, Dehradun and Bhatinda.
The wide launch of the service comes after the company began testing its home delivery service in Navi Mumbai, Thane and Kalyan in late April, soon after social network giant Facebook announced it was investing $5.7 billion in Reliance Jio.
“Reliance launches JioMart service across cities,” tweeted Damodar Mall, the chief executive of Grocery Retail at Reliance Retail. “Big town or small, JioMart delivers in over 200 towns.”
JioMart lists fresh food, pulses, packaged food, household cleaning items and pet food among a few other categories of products on its website currently, going up squarely against players such as BigBasket, Grofers, Amazon Fresh and Pantry, and Flipkart’s Supermart.
While details of the sellers have not been disclosed on the JioMart website, the company is targeting sales through local kiranas along with servicing orders via its Reliance Fresh and Smart stores, and also distribution centres in areas where orders through kiranas are not serviceable.
“As the density of kiranas grows on JioMart, more orders will be routed through them,” said a person in the know of the matter, who did not want to be named.
Jio’s parent, Reliance Industries, did not respond to ET’s queries until the time of going to print on Sunday.
JioMart is available as a mobile and desktop website but not as an app yet. But it is expected to soon become available via Facebook-owned instant messaging app WhatsApp, just as it was for delivery in Mumbai’s suburbs in April.
“Reliance Fresh and Smart makes your grocery shopping even simpler. No more hassles of sweating it out in crowded markets, grocery shops & supermarkets - now shop from the comfort of your home; office or on the move,” reads JioMart’s ‘about us’ page on its website.
The service is offering discounts across products and categories, with the website advertising a “minimum 5% below MRP”. In the fresh produce section, JioMart says it sources the items directly from farmers. In packaged food, the website also displays Reliance’s private brands such as Snactac.
Jio Platforms, which operates JioMart, has lapped up investments totalling Rs 78,562 crore from Facebook, private equity funds Silver Lake, Vista Equity Partners, KKR and General Atlantic, over the last one month. Jio Platforms comprises India's largest telecom operator — Reliance Jio Infocomm — that has 388 million subscribers.
tech.economictimes.indiatimes.com
JioMart website goes live across 200 cities in India
The wider launch of the service comes after the company began testing its home delivery service in Navi Mumbai, Thane and Kalyan in late April
ETtech | Updated: May 25, 2020, 00:09 IST
Illustration: Rahul Awasthi
Reliance Jio’s online shopping portal, JioMart, is now open for orders in 200 cities including all metros and places such as Mysuru, Visakhapatnam, Coimbatore, Dehradun and Bhatinda.
The wide launch of the service comes after the company began testing its home delivery service in Navi Mumbai, Thane and Kalyan in late April, soon after social network giant Facebook announced it was investing $5.7 billion in Reliance Jio.
“Reliance launches JioMart service across cities,” tweeted Damodar Mall, the chief executive of Grocery Retail at Reliance Retail. “Big town or small, JioMart delivers in over 200 towns.”
JioMart lists fresh food, pulses, packaged food, household cleaning items and pet food among a few other categories of products on its website currently, going up squarely against players such as BigBasket, Grofers, Amazon Fresh and Pantry, and Flipkart’s Supermart.
While details of the sellers have not been disclosed on the JioMart website, the company is targeting sales through local kiranas along with servicing orders via its Reliance Fresh and Smart stores, and also distribution centres in areas where orders through kiranas are not serviceable.
“As the density of kiranas grows on JioMart, more orders will be routed through them,” said a person in the know of the matter, who did not want to be named.
Jio’s parent, Reliance Industries, did not respond to ET’s queries until the time of going to print on Sunday.
JioMart is available as a mobile and desktop website but not as an app yet. But it is expected to soon become available via Facebook-owned instant messaging app WhatsApp, just as it was for delivery in Mumbai’s suburbs in April.
“Reliance Fresh and Smart makes your grocery shopping even simpler. No more hassles of sweating it out in crowded markets, grocery shops & supermarkets - now shop from the comfort of your home; office or on the move,” reads JioMart’s ‘about us’ page on its website.
The service is offering discounts across products and categories, with the website advertising a “minimum 5% below MRP”. In the fresh produce section, JioMart says it sources the items directly from farmers. In packaged food, the website also displays Reliance’s private brands such as Snactac.
Jio Platforms, which operates JioMart, has lapped up investments totalling Rs 78,562 crore from Facebook, private equity funds Silver Lake, Vista Equity Partners, KKR and General Atlantic, over the last one month. Jio Platforms comprises India's largest telecom operator — Reliance Jio Infocomm — that has 388 million subscribers.
JioMart website goes live across 200 cities in India
The wider launch of the service comes after the company began testing its home delivery service in Navi Mumbai, Thane and Kalyan in late April
India looks to store cheap oil in United States: Dharmendra Pradhan
India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
Reuters | Updated: May 26, 2020, 10:59 IST
NEW DELHI: India is looking at storing some low priced US oil in facilities there as its local storage is full, oil minister Dharmendra Pradhan said.
India’s plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
“We are exploring some possibility if we can store some of our investment in a different country ... we are exploring the possibility in the USA if we can store some of the low priced oil,” Pradhan said.
Oil prices have dropped more than 40% so far in 2020 but have picked up in the past few weeks partly due to efforts by the Organization of the Petroleum Exporting Countries (OPEC) and allies to reduce supply.
Pradhan said India, which is the world’s third biggest oil consumer and importer, had already filled its 5.33 million tonnes of strategic storage and parked about 8.5-9 million tonnes of oil on ships in different parts of the world, primarily in the Gulf.
Indian refiners have also filled their commercial tanks and pipelines with refined fuel and oil.
Pradhan said stored oil and products amounted to about 20% of India’s annual needs. India imports more than 80% of its oil requirements.
The government plans to build new strategic storage to expand capacity by 6.5 million tonnes. Pradhan said India was keen to have participation from global investors in building these facilities.
India’s fuel demand nearly halved in April to its lowest level since 2007 as a nationwide lockdown and travel curbs to combat the spread of novel coronavirus eroded economic activity.
So far in May, petrol and diesel demand is about 60%-65% of what it was in the same month last year and in June fuel consumption will return to the same level as June 2019, he said.
www.moneycontrol.com
India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
Reuters | Updated: May 26, 2020, 10:59 IST
NEW DELHI: India is looking at storing some low priced US oil in facilities there as its local storage is full, oil minister Dharmendra Pradhan said.
India’s plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
“We are exploring some possibility if we can store some of our investment in a different country ... we are exploring the possibility in the USA if we can store some of the low priced oil,” Pradhan said.
Oil prices have dropped more than 40% so far in 2020 but have picked up in the past few weeks partly due to efforts by the Organization of the Petroleum Exporting Countries (OPEC) and allies to reduce supply.
Pradhan said India, which is the world’s third biggest oil consumer and importer, had already filled its 5.33 million tonnes of strategic storage and parked about 8.5-9 million tonnes of oil on ships in different parts of the world, primarily in the Gulf.
Indian refiners have also filled their commercial tanks and pipelines with refined fuel and oil.
Pradhan said stored oil and products amounted to about 20% of India’s annual needs. India imports more than 80% of its oil requirements.
The government plans to build new strategic storage to expand capacity by 6.5 million tonnes. Pradhan said India was keen to have participation from global investors in building these facilities.
India’s fuel demand nearly halved in April to its lowest level since 2007 as a nationwide lockdown and travel curbs to combat the spread of novel coronavirus eroded economic activity.
So far in May, petrol and diesel demand is about 60%-65% of what it was in the same month last year and in June fuel consumption will return to the same level as June 2019, he said.
India looks to store cheap oil in United States: Oil Minister Dharmendra Pradhan
India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
This has been going on forever. The most common thing among all these scammers are....most of them if not all are Gujarati and of particular cast. to bad for common Indian... they have managed to put one of there own on power corridor of Delhi.
@BlackOpsIndia
India looks to store cheap oil in United States: Dharmendra Pradhan
India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
Reuters | Updated: May 26, 2020, 10:59 IST
View attachment 16088
NEW DELHI: India is looking at storing some low priced US oil in facilities there as its local storage is full, oil minister Dharmendra Pradhan said.
India’s plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
“We are exploring some possibility if we can store some of our investment in a different country ... we are exploring the possibility in the USA if we can store some of the low priced oil,” Pradhan said.
Oil prices have dropped more than 40% so far in 2020 but have picked up in the past few weeks partly due to efforts by the Organization of the Petroleum Exporting Countries (OPEC) and allies to reduce supply.
Pradhan said India, which is the world’s third biggest oil consumer and importer, had already filled its 5.33 million tonnes of strategic storage and parked about 8.5-9 million tonnes of oil on ships in different parts of the world, primarily in the Gulf.
Indian refiners have also filled their commercial tanks and pipelines with refined fuel and oil.
Pradhan said stored oil and products amounted to about 20% of India’s annual needs. India imports more than 80% of its oil requirements.
The government plans to build new strategic storage to expand capacity by 6.5 million tonnes. Pradhan said India was keen to have participation from global investors in building these facilities.
India’s fuel demand nearly halved in April to its lowest level since 2007 as a nationwide lockdown and travel curbs to combat the spread of novel coronavirus eroded economic activity.
So far in May, petrol and diesel demand is about 60%-65% of what it was in the same month last year and in June fuel consumption will return to the same level as June 2019, he said.
India looks to store cheap oil in United States: Oil Minister Dharmendra Pradhan
India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the US Strategic Petroleum Reserve to take advantage of low oil prices.
Ohhhh I seee!!
Had they not succumbed to US pressure they would be having ample of oil supply from Iran