How was the central bank’s response to the pandemic? Ensured adequate liquidity in the economy: It reduced interest rates and flooded the system with liquidity to avoid any friction in financial markets. For instance, RBI introduced targeted repo operations. Ensured the proper functioning of financial markets: unlike several other large central banks, it did well to …
Rising incidence of poverty during pandemic: Recent estimates from the World Bank suggest that 88 to 115 million people could slide into poverty in 2020. Credit Suisse Report The Covid-19 pandemic has left the Indian adults poorer by 6.1% in 2020. Wealth per Indian adult in 2020 has dropped to $14,252 by 2020-end compared to pre-pandemic levels. On a cumulative basis, …
COVID Impact in rural India: Impact on agricultural economy: Spread of the pandemic might affect activity, both on the field and in mandis. This will have an impact on both output and demand. Rise in unemployment rate: The unemployment rate in rural areas has risen sharply in recent weeks to double digits, according to the Centre for …
United Nations Conference on Trade and Development(UNCTAD) has released a report titled “Impact of the COVID-19 Pandemic on Trade and Development: Transitioning to a New Normal”. Key Finding: The global economy would contract 4.3% this year due to the pandemic. This could send an additional 130 million people into extreme poverty. The United Nations’ Sustainable …
Impact of the COVID-19 Pandemic on Trade and Development : UNCTAD Report – UPSC GS3 Read More »
Facts: Put together, all Covid-19 relief measures would increase the Centre’s actual fiscal outgo by under 2% of GDP in 2020-21. As per the government, the total stimulus announced by the Government and Reserve Bank of India (RBI) till date (including Atmanirbhar 1.0 and Atmanirbhar 2.0), to help the nation tide over the Covid-19 pandemic, works out to Rs. 29.87 lakh crore, …
Analysis of Atma Nirbhar Bharat Packages – UPSC GS3 Read More »
The Finance Minister has announced a fresh set of relief and stimulus measures for the economy worth ₹1.19 lakh crore as a part of Atma Nirbhar Bharat Abhiyan 3.0 Announcements made: Emergency Credit Line Guarantee Scheme: The emergency credit line guarantee scheme (ECLGS) for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes) has been …