ECONOMY - 2020 MAY

May 24

India's retail trade Lost Rs 9 Lakh Crore of Business: CIAT
The Confederation of All India Traders (CAIT) has announced that India's retail trade lost the business of around Rs 9 lakh crore during the past 60 days.
* The Central and State GST revenue also lost about Rs 1.5 lakh crore by the loss of business.

May 22

RBI cuts repo rate by 40 basis points to 4%
The Reserve Bank of India (RBI) reduced the repo rate by 40 basis points to 4 percent, Governor Shaktikanta Das announced. This decision was taken by the central bank's Monetary Policy Committee (MPC).
* It is an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.

Reliance sells 2.32% in Jio Platforms for Rs 11,367 crore to KKR
Reliance Industries announced that The US private equity giant KKR will invest Rs 11,367 crore in Jio Platforms for a 2.32% stake.
* Over the last month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic, and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms.


May 21

Centre sanctions Rs 92,077 cr to states as devolution of central taxes
Finance Minister Nirmala Sitharaman said that the government has released Rs 92,077 crore towards the devolution of central taxes to states for April and May 2020. It aims to ensure that the state's cash flows remain undisturbed at this crucial time.
* The devolution amount for April stood at Rs 46,038.10 crore, while for May, it is Rs 46,038.70 crore.

May 20

Centre sanctions Rs 46,038.70 cr as states' shares in taxes for May
The finance ministry said it has sanctioned Rs 46,038.70 crore for May instalment of devolution of states' share in central taxes and duties. The Budget had projected the share of the states in taxes at Rs 7.84 lakh crore for 2020-21.
* As per the state-wise break up of devolution, Rs 1,892.64 crore was issued to Andhra Pradesh, Rs 982 crore to Telangana, Rs 1,441.48 crore to Assam, Rs 1,564.4 crore to Gujarat, Rs 3,461.65 crore to West Bengal, Rs 8,255.19 crore to Uttar Pradesh, Rs 894.53 crore to Kerala and Rs 4,631.96 crore to Bihar.

Centre releases Rs 15,340 cr GST compensation to states
The Centre has released Rs 15,340 crore GST compensation to the states and Union territories in the current fiscal (2020-21). The Finance Ministry said despite an insignificant revenue mop-up from goods and services tax owing to the nationwide lockdown it has sanctioned compensation.
* GST was rolled out on July 1, 2017.
* For 2019-20 fiscal (up to November 2019), the Centre has released Rs 1,20,498 crore GST compensation, higher than Rs 69,275 crore released in full 2018-19 and Rs 41,146 crore in 2017-18.

COVID-19 to push 60 million into poverty: World Bank
The coronavirus pandemic is expected to put over 60 million (6 crores) people into extreme poverty globally, the World Bank has said. It announced emergency operations worth USD 160 billion in 100 developing countries to fight the deadly virus.

 

May 18

Indian Economy to Contract by 5% in FY21
Goldman Sachs has forecast a "deeper recession for India" with an estimate of real GDP falling by 5 percent in the financial year 2020-21. The GDP will contract by 45 percent in the second quarter (June) as compared to the January-March period on an annualized basis, it said.
* Earlier, Goldman Sachs has expected a 0.4 percent contraction in 2020-21.

 

May 17

Centre raises borrowing limit of states from 3% of GSDP to 5% for 2020-21
Finance Minister Nirmala Sitharaman on Sunday announced Centre has raised the borrowing limit of states from 3 per cent of gross state domestic product (GSDP) to 5 per cent for 2020-21 only. This will give an additional Rs 4.28 lakh crore to the states.
* Currently, states have a net borrowing ceiling of Rs 6.41 lakh crore based on 3 per cent of GSDP.

General Atlantic to invest Rs. 6,598.38 crore in Jio Platforms
US-based General Atlantic has picked up 1.34 percent stake in the Jio Platforms for Rs. 6,598.38 crore, Reliance Industries said.
* Facebook picking up a 9.99 percent stake in Jio Platforms on April 22 for Rs 43,574 crore. Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore. On May 8, US-based Vista Equity Partners bought a 2.32 percent stake in Jio Platforms for Rs 11,367 crore.
* With these investments, Jio Platforms has raised Rs 67,194.75 crore in less than four weeks. Between the four deals, Reliance has sold 14.8 per cent of Jio Platforms.

 

May 16

FM announces hike in FDI in defence production
Finance Minister Nirmala Sitharaman said the Foreign Direct Investment (FDI) limit for the sector under automatic route will be raised from 49 per cent to 74 per cent.
* As per the current FDI policy, 100 percent of overseas investments are permitted in the defense industry 49 percent under the automatic route, while beyond that government approval is required.
* India's defense industry received an FDI of USD 8.82 million (Rs 51.93 crore) during April 2000 and December 2019.

 

May 12

US to give $3.6 million aid to India for COVID-19 battle
The US Centers for Disease Control and Prevention (CDC) has committed 3.6 million dollars to assist India's efforts to combat the Covid-19 pandemic.
* This funding will support the Central government's efforts to increase laboratory capacity for SARS-COV-2 testing, including molecular diagnostics and serology.

PM Modi announces Rs 20 lakh crore special package for economy
Prime Minister Narendra Modi announced Rs 20 lakh crore special economic package for the country to be 'self-reliant' and deal with COVID-19. This is 10 per cent of India's GDP. He said this will play an important role in the 'Atmanirbhar Bharat Abhiyan.'
* Modi said this Economic package is for our labourers, farmers, honest tax payers, MSMEs and cottage industry.

India's Industrial production falls 16.7% in March
According to the National Statistical Office (NSO) data, the country's industrial output declined by 16.7 per cent in March 2020, mainly on account of poor show by mining, manufacturing and electricity sector due to the nationwide lockdown.
* The Index of Industrial Production (IIP) had grown by 2.7 per cent in March, 2019.

 

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