Why Moody’s downgraded India’s rating, what the implications may be ?
On Monday, Moody’s Investors Service (“Moody’s”) downgraded the Government of India’s foreign-currency and local-currency long-term issuer ratings to “Baa3” from “Baa2”.
It stated that the outlook remained “negative”.
The latest downgrade reduces India to the lowest investment grade of ratings and brings Moody’s — which is hist
Can India decouple itself from Chinese manufacturing?
By, Amitendu Palit, is Professor at the Institute of South Asian Studies, National University of Singapore; Biswajit Dhar is Professor at the Centre for Economic Studies and Planning, Jawaharlal Nehru University
Context
# The border clashes with China and the COVID-19 pandemic have reignited questions about India’s dependence on Chinese manufacturing.
# India’s imports from China (2nd after USA) in 2019-2020 reached $
The COVID-19 fiscal response and India’s standing
Context:
- The article analyzes the COVID-19 fiscal response in other developing countries and evaluates India’s fiscal response.
- The article utilizes data from the International Monetary Fund Policy Tracker, the COVID-19 Economic Stimulus Index (CESI) of Ceyhun Elgin at Columbia University, and the World Bank to understand the COVID-19 fiscal response of different countries.
Fiscal response in developing countries:
C
New FDI rules, 2020
The Government of India has made its approval for Foreign Direct Investment (FDI) by neighbouring countries mandatory.
This revised FDI policy aims to curb opportunistic takeovers/acquisitions of Indian companies due to the current Covid-19 pandemic.
Important points:
FDI is allowed under two modes - either through the automatic route, for which companies don't need government approval, or through the government route, for which companies need a go-ahea
India’s no to RCEP could still be a no
Context
Last week, 15 East Asian countries agreed to take their economic integration several notches higher by forging the Regional Comprehensive Economic Partnership (RCEP), the largest free trade agreement (FTA) ever.
In 2019, RCEP members accounted for about 30% of world output and population and 28% of world trade.
But more importantly, about 44% of their total trade was intra-RCEP, which is a major incentive for the members of this
Impacts of Globalisation on India
Context
The External Affairs Minister S. Jaishankar believes that the economic growth that has accrued from globalisation is not a good enough outcome for India.
MEAs views on impact of globalisation on India
An “honest” self-assessment of this trade and economic performance is necessary to show what costs India has paid for its economic success: That if globalisation, especially trade, is assessed in the broader context of its o