Reading Time: 7 mins The Economic Survey of 2019-20 argued for the need to eliminate crony capitalism in order to ensure public welfare. It suggested the promotion of pro-business policies that does not let companies and businesses form monopolies and survive even in the absence of efficiency and growth. The elimination of cronyism with strong political will is vital now more than ever as there is a high possibility of large businesses making use of their economic muscles to influence political decisions amid the coronavirus-led economic crisis.
Reading Time: 5 mins Government of India took many precautionary measures with long-term impacts in the light of COVID-19 pandemic. One such measure was an advisory released by the Union Ministry of Environment, Forest and Climate Change (MoEFCC) to streamline and formalize the process of importing live exotic animals.
Reading Time: 6 mins The COVID-19 crisis has affected businesses across India in various ways like a drop in demand, labour shortage, supply chain disruption, etc. One of the impacts of the crisis is on the firms’ ability to fulfil obligations under various contracts in India. In this context, firms are looking at the ‘Force Majeure’ clause to provide respite in times of such unforeseen crises not only in the present but also in the future.
Reading Time: 10 mins In March 2020, global crude oil prices decreased to about 40%. This means that a barrel of oil costs just $25 now. This came as a result of failed talks of production cut between OPEC and Russia. This led to Saudi Arabia, the largest exporter of oil, launching a price war. While many may see this as a disadvantage, for India it is an opportunity to fill up its strategic reserve. The government had decided to buy oil worth Rs.5,000 crore at the current price of around $30 per barrel for deliveries starting in April-May. However, this opportunity does not allow the Indian economy to gain full potential as it has come amid the coronavirus outbreak that has halted most of the economic activities in the country.
Reading Time: 15 mins Despite the slowdown in the global economy, inflows of foreign investment into India has not been impacted. In fact, India is among the top 10 recipients of the FDI in 2019, attracting $49 billion inflows, a 16% increase when compared to last year. However, the majority went to the service sector. India has failed to attract investments in other vital sectors like the manufacturing sector that is currently facing a crisis. To add to the woes of these sectors, recently, new modifications were made in India’s FDI policy as a countermeasure to “opportunistic takeover” of domestic firms by foreign entities. This new rule targets China in particular as it is currently making use of the economic crisis by investing in stressed sectors in many countries across the world.
Reading Time: 8 mins Startups are a vital part of the Indian economy as they promote economic growth, create employment and foster a culture of innovation. The Indian government launched the Startup India Campaign, recognising entrepreneurship as an increasingly important strategy to fuel productivity growth and wealth creation in India. During the Union Budget 2020, the Finance Minister gave high emphasis on measures taken to promote and support startups as they are going to the driver of the Indian economy in the near future. From infrastructure boost to easing tax burdens, the budget has proposed numerous benefits for the startups. The recent economic survey pointed out an increase in startups in India. However, many are opting to register overseas due to complicated compliance norms and loss-inflicting laws. Necessary reforms to ensure ease of doing business for the startups is vital for the success of the startup India initiative.
Reading Time: 5 mins First Published: Feb 8, 2019 Updates* India’s participation in the mega-trade agreement, Regional Comprehensive Economic Partnership (RCEP) has long been …
Reading Time: 6 mins India is largely an agrarian economy. More than 50% of its population is dependent on the agricultural sector for its livelihood and survival, though the returns are very low. The service sector, on the other hand, employs very few of the Indian labour force and its return nearly 60% of the Indian GDP. This is highly unfavourable for the Indian economy. To change this current trend, it is necessary to enhance the manufacturing sector. This can greatly boost India’s economic growth and solve the current unemployment crisis. The Make in India is a major step towards this direction.
Reading Time: 6 mins
The Competition Commission of India (CCI) had turned a decade old recently. 10 years since its establishment, the Commission is undertaken numerous measures to assure ease and freedom of trade and prevention of unfair practices in the Indian market. However, the current development of technology and business models is posing new and varied challenges to the CCI.