ANALYSIS OF THE HINDU AND ECONOMIC TIMES DATED 30 TH AUGUST,2019

   THE HINDU AND ECONOMIC TIMES 30^TH AUGUST 2019

   NEW PAPER ANLYSIS

   RUSSIA SET OF OFFER SUBMARINES DURING MODI PUTIN SUMMIT

1.       RUSSIA IS LIKELY TO OFFER INDIA ITS CONVENTIONAL SUBMARINES ON THE GOVERNMENT TO GOVERNMENT ROUTE UNDER THE NAVY’S PROJECT 751 AT THE SUMMIT BETWEEN PRIME MINISTER NARENDRA MODI AND PRESIDENT VLAADMIR PUTIN AT VLADIVOSTOK NEXT WEEK

2.       IT WILL SAVE THE TIME

3.       THE PROCUREMENT IS UNDER THE STRATEGIC PARTNERSHIP ( SP ) MODEL AND IS THE SECOND PROJECT TO BE PROCESSED THROUGH THIS ROUTE

4.       THE RUSSIAN SUBAMRINE WILL LIKELY BE BASED ON THE AMUR 1650 CONVENTIONAL SUBMARINE MODIFIED TO SUIT INDIAN REQUIRMENTS

5.       THE POSSIBILITY OF OFFERING SU-57 THE RUSSAIN FIFTH GENERATION FIGHTER AIRCRAFT IS ALSO BEING EXPLORED.

   THOSE EXCLUDED FROM FINAL NRC WILL GET A WINDOW OF 10 MONTHS

1.       THOSE EXCLUDED FROM THE FINAL NATIONAL REGISTER OF CITIZEN TO BE PUBLISHED ON 31 WILL GET A WINDOW OF 10 MONTHS TO PROVE THEIR CITIZENSHIP BEFORE BEING SENT TO DETENTION CENTRES .

2.       PEOPLE INCLUDED IN THE DRAFT NATIONAL REGISTER OF CITIZENS ( NRC) PUBLISHED IN JULY 2018 BUT SUSPECTED TO BE FOREIGNERS CONTINUE TO RECEIVE NOTICES FOR REVERIFICATION

3.       LACK OF DEMAND IS HOLDING THE ECONOMY’S ANIMAL SIPRITS THE HINDU

  ECONOMY UNDER CYCLICAL SLOWDOWN NOT STRUCTURAL ONE RBI AS PER ECONOMIC TIMES:

1. AS PER ANNUAL REPORT OF 2018-2019, THE ECONOMY IS UNDERGOING A CYCLICAL SLOW DOWN
2. LACK OF DOMESTIC DEMAND IS HOLDING BACK THE ANIMAL SIPIRITS IN THE ECONOMY
3. ISSUES RELATED TO LAND,LABOUR,AND MARKETING WILL NEED TO BE ADDRESSED
4. BROADBASED DOWN TURN IS UNDERWAY IN SECTORS SUCH AS MANUFACTRUING,TRADE,HOTEL,TRANSPORT,COMMUNICATIONS AND BROADCASTING,CONSTRUCTION AND AGRICULTURE
5. LACK OF DEMAND IS HOLDING THE ECONOMY’S ANIMAL SIPRITS THE HINDU

A DECOMPOSITION OF VARIOUS SEASONALLY ADJUSTED INDICATORS OF ECONOMIC ACTIVITY AGGREAGATS AND SECTORAL INTO TREND AND CYCLICAL COMPONENT SUGGEST THAT IT IS CYCLICAL SLOW DOWN RATHER THAN STURUCTURAL SLOW DOWN.

IN THE MONETARY POLICY REVIEW : RBI CUT GROWTH PROJECTION FY 20 TO 6.9 FROM ITS JUNE FORCAST OF 7% CITING WEAK DOMESTIC ECONOMIC ACTIVITY AND GLOBAL SLOWDOWN

   LACK OF DEMAND IS HOLDING THE ECONOMY’S ANIMAL SIPRITS THE HINDU

INDEPENDENT EVALUATORS HAVE FORECAST A SHARPER SLOW DOWN. LAST WEEK MOODY ‘S INVESTOR SERVICE CUT INDIA’S GDP GROWTH PREDICTION FOR CALENDER 2019 TO 6.2 FROM 6.8 AND PREDICTED IT WILL FURTHER SLOW TO 6.7 IN 2020. MODI’S CUT ITS GROWTH FORECAST FOR 8 COUNTRIES IN ASIA INCLUDING INDIA

1. SLOWDOWN IS CYCLICAL BUT STRUCTURAL REFORMS ARE NEEDED
2. LACK OF DEMAND IS HOLDING THE ECONOMY’S ANIMAL SIPRITS THE HINDU

  ECONOMY UNDER CYCLICAL SLOWDOWN NOT STRUCTURAL ONE RBI AS PER ECONOMIC TIMES:

 SERIES OF STIMULUS :

1.       ROLL BACK OF SURCHARGE OVERSEAS INVESTORS

2.       IMPROVES CREDIT FLOWS

3.       TRANSMSSION OF LOWER INTEREST RATES

4.       RELAXATION OF FOREIGN DIRECT INVESTMENT NORMS

   GOVERNMENT PLANNING TO GET OFF AIR INDIA,BAG AND BAGGAGE ( ET)

1.       THE GOVERNMENT WANTS TO EXIT FULLY FROM AIR INDIA AS IT EMBARK ON ANOTHER EFFORTS AIMED AT DIVESTING THE LOSS LADEN CARRIER AFTER PLAN TO SELL A 76% STAKE LAST YEAR WAS UNSUCCESSFUL.

2.       AVIATION MINISTER HARDEEP SINGH PURI: GOVERNMENT SHOULD NOT BE IN THE BUSINESS OF RUNNING AIR LINES

3.       DEBT OF 31,000 CRORES AFTER THE GOVERNMENT TOOK OVER RS 29,000 CRORE OFF ITS BOOKS,REDUCING THE INTEREST BURDEN BY 2400 CRORES TO 1700 AND OIL COMPANIES STOPPED SUPPLIES TO THE AIR INDIA GROUP

4.       SO CALLED ALTERNATIVE MECHANIM HEADED BY UNION HOME MINISTER AMIT SHAH WILL MEET SOON TO FIANLISE THE ASSET SALES PLAN

   FREE TRAVEL FOR WOMEN GETS DELHI CABINET NOD

1.       THE DELHI CABINET ACCORDED IN PRINCIPLE APPROVAL TO FREE TRAVEL FOR WOMEN ABROAD DELHI TRANSPORT CORPORATION ( DTC) AND CLUSTER BUSES BEGINNING OCTOBER 29

2.       DECISION WAS TAKEN AT THE CABINET MEETING CHAIRED BY CHIEF MINISTER ARVIND KEJRIWAL AND ENTAILS THE PROVISIONS OF FREE,SINGLE JOURNEY. FREE TRAVEL FACILIY DTC AND CLUSTER BUSES.

3.       ALSO AVAILBLE FOR WOMEN COMMUTERS WITH IN THE JURISDICTION OF THE CAPITAL BUT ALSO ON STATE RUN BUS SERVICES IN NOIDA AND THE NATIONAL CAPITAL REGION IN ADDITION TO AIRPORT AND OTHER SPECIAL SERVICES.

   FIT INDIA MOVEMENT KICKED OFF ON NATIONAL SPORTS DAY

1.       MARKING THE NATIONAL SPORTS DAY ON THE BIRTH ANNIVERSARY OF HOCKEY LEGEND MAJOR DHYAN CHAND. PM LAUNCHED THE PEOPLE’S MOVEMENT FOR PROMOTING FITNESS

2.       LAUNCHING THE FIT INDIA MOVEMENT.PM SAID THAT HEALTHY INDIVIDUALS,FAMILIES AND SOCIETY WOULD BE THE ONES TO MAKE INDIA FIT INDIA AND URGED PEOPLE TO MAKE FITNESS THEIR LIFE STYLE

3.       ALSO CONGRATULTED THE PLAYERS WHO HAD WON MEDAL

   RS 47,436 CORE RELEASED FOR AFFORESTATION

1.       THE UNION ENVIRONMENT MINISTRY TRANSFERRED 47,436 CRORE TO 27 STATES FOR AFFORESTATION

2.       THESE ARE FOR LONG-PENDING DUE PARTS OF THE COMPENSATORY AFFORETSATION FUNDS AND 54000 CRORE TRANCHE THAT HAS BEEN COLLECTED FOR NEALRY A DECADE AS ENVIRONMENTAL COMPENSATION FROM INDUSTRY WHICH HAS RAZED FOREST LAND FOR ITS BUSINESS PLANS

3.       THE AMOUNT TO BE PAID BY INDUSTRY DEPENDS ON THE ECONOMIC VALUES OF THE GOODS AND SERVICES THAT THE RAZED FOREST WOULD HAVE BEEN PROVIDED.

4.       THE CAF ACT 2016 WHICH CAME INTO BEING MORE THANA DECADE SINCE IT WAS DEVISED ESTABLISHED AND INDEPENDENT AUTHORITY-THE COMPENSATORY AFFORESTATION FUND MANAGEMENT AND PLANNING AUTHORITY TO EXECUTE THE FUND

5.       ENVIRONMENT MINISTER PRAKASH JAVADEKAR WHILE PRESENTING CHEQUES TO SENIOR OFFCIALS IN STATE FOREST ADMINISTRATION SAID THAT CENTRE WOULD USE GOGRAPHIC TAGGING TECHNOLOGY TO KEEP A TAB ON WHETHER SATES WERE USING THEIR ALLOTTED FUNDS APPORPRIATELY.

6.       FUNDS WILL BE USED AS PER PROVISION OF THE CAF ACT AND RULES. THESE INCLUDE CATCHMENT AREA TREATMENT,WILDLIFE MANAGEMENT,FOREST FIRE PREVENTION,SOIL AND MOISTRUE CONSERVATION WORK. CAN NOT BE USED FOR THE PAYMENT OF THE SALARY,TRAVELLING ALLOWANCE,MAKING BUILDING AND BUYING OFFICE EQUIPMENT.

7.       USE ELECTRONIC REPOSITORIES,GEOGRAPHICAL TAGGING FOR TRACKING EXPENSES.

8.       ODISHA TOP RECIPIENT( 6000 CRORES),CHATTISGARH(5791) AND MP( 5196)

   SUMMARY OF NEWS

1.       RS 2000 NOTES IN CIRCULATION FALLS:-ACCORDINF TO THE DATA IN RBI 3,363 MILLION PIECES OF SUCH NOTES IN CIRCULATION AT THE END OF 2018,3.3% OF THE TOTAL CURRENCY IN CIRCULATION IN TERMS OF VALUE, IN VLAUE TERMS SHARE IN TOTAL CURRENCY CIRCULATION WAS 37.3%. THE NUMBER OF PIECES DROPPED TO 3291 MILLION IN 2019,VOLUME WAS 3% AND VALUE WISE 31,2%. SHARP INCREASE  IN THE VALUE OF 500 BANKNOTES IN CIRCULATION FROM 42.9% TO 51. OVER THE YEARS.

2.       BANK FRAUDS RISE 74% SAYS RBI:- BANK FRAUDS SAW A WHOPPING 73.8% JUMP VALUE IN 2018-2019 AS COMPARED TO THE PREVIOUS YEAR. THE NUMBER OF CASES OF INCREASED BY 15% ON YEAR TO YEAR BASIS. WITH THE AMOUNT INVOLVING RISE BY 73.8%. PUBLIC SECTOR CONSTITUTE THE LARGEST MARKET SHARE IN BANK LENDING ACCOUNT FOR BULD OF FRAUDS.

   ECONOMIC TIMES SUMMARY OF NEWS

Ø  CG POWER BOARD REMOVES CHAIRMAN GAUTAM THAPARBUSINESS GAUTAM THAPAR HAS BEEN OUSTED AS CHAIRMAN OF CG POWER AND INDUSTRIAL SOLUTIONS FORMERLY KNOWN AS CROMPTON GREAVES BY THE COMPANY’S BOARD THAT WAS UNDER PRESSURE FROM INVESTORS AND LENDERS TO REMOVE HIM AFTER A PROBE REVEALED FINANCIAL AND GOVERNMENT IRREGULATIES.

   AUTOMAKERS OUT TO DRIVE SALES IN FESTIVAL SEASON:

1.       VEHICLES MAKES ARE PULLING OUT ALL THE STOPS IN A BID TO MAKE THE MOST DURING THE FESTIVAL SEASON AMID CRIPPLING SLOWDOWN IN THE LOCAL MARKET.

2.       WITH BUYERS DITHERING TO ENTER THE SHOW ROOMS,THE COMPANIES ARE LITERALLY LANDING UP AT THEIR DOORSTEPS TO MAKES SALE PITCH, MOST OF THEM HAVE BOOSTED THEIR SALE AND MARKETING BUDGETS AND BE LAUNCHING SPECIAL COMPAIGNS FOR THE FESTIVAL MONTHS

   ACTIVITIES BY AUTO MAKERS

1.       LEADING TWO WHEELER MAKER IS ENGAGING YOUTH BY ORGANIZING EVENTS,

2.       HYUNDAI MOTOR USING THE PORTAL OF PUJA PANDALS AN OPPORTUNITY TO PUSH SALES

3.       MARUTI SZUKI APPROACHING PROSPECTIVE CUTOMER SEGMENTS LIKE DEFENCE PERSONNEL AND GOVERNMENT EMPLOYEES WITH SPEICAL OFFERS

4.       OTHERS ARE USING CAR MELA,MALL AND AIRPORT ACTIVITIES,MOVING BILLBOARD AND SHOW ROOM ON WHEELS IN SEARCH OF THE BUYERS

5.       THE AUTOMOTIVE INDUSTRY IS GOING THROUGH ITS WORST SLOW DOWN IN ABOUT TWO DECADES

6.       CAR MARKET HAS SHRUNK SALES DECLINED BY 14%

7.       HYUNDAI MOTOR HAS NAMED ITS FESTIVE CMPAIGN “ CELEBRATION,WHILE MERCEDEZE BENZ WISH BOX

8.       THE LOCAL UNITMOF TOYOTA MOTOR HAS LAUNCHED TWO FINANCING SCHEMES FOR BUYERS IN THE FESTIVE SEASON TOYOTA EDGE ABD TOYOTA SMART

   SUMMARY OF NEWS:ET

1.       WALMART FLIPCART PLANS TO FOCUS ON CORE CATEGORIES SMART PHONES ELECTRONIC AND IT TOP SELLING BRANDS ACROSS MULTIPLE SEGEMNTS

2.       E MAREKT PLACE TOLD TO UPLOAD FDI COMPLIANCE DETAILS:- THE GOVERNMENT ON THURSDAY ASKED ECOMMERCE MARKETPLACE SUCH AS AMAZON AND WALLMART OWNED FLIPKART TO UPLOAD ON THEIR WEBSITE REPORTS FROM THEIR STATUTORY AUDITORS CERTIFYING THAT THEY ARE COMPLYING WITH FDI RULES

3.       REPORTS HAVE TO BE UPLOADED BY SEPTEMBER 30 AND THIS INSTACNE WILL COVER FEB AND MARCH. IN FUTURE THEY WILL HAVE TO FURNISHED FOR THE ENTIRE YEAR,

4.       LLAW MAKERS WILL SOON HAVE TO ADHERE A CODE OF CONDUCT INSIDE LEGISLATURE AND PARLIAMENT

5.       NEED TO IMPROVE THE EFFICIENCY OF PARLIAMENT AND THE LEGISLATION.

   EDITORIAL ET
TIME FOR POLITICAL COURAGE
IMPLIES RBI

Ø  IS IT SOFT PATCH,ACYCLICAL DOWNSWING OR A STRUCTURAL SLOWDOWN

Ø  IT IS ALL THREE: A SOFT PATCH MUTATING INTO A CYCLICAL DOWNSWING,WITH SEVERAL STRUCTURAL PROBLEMS REMAINING TO BE ADDRESSED

Ø  THE RBI RECOMMENDS FISCAL REEADJUSTMENTS TO BOOST GROWTH WITHOUT ACCUMULATING PUBLIC DEBT WHILE BRINGING ABOUT IMPROVEMENT IN SPENDING FOR INFRASTRUCURE AND SOCIAL SECTOR

Ø  WHAT PRECISLEY IT MEANS?

Ø  GOVERNMENT SHOULD STOP PAYING INTEREST ON ITS DEBT OR PAYING SALARIES ( BUT THESE ARE NOT VIABLE OPTIONS)

Ø  THAT LEAVES PRUNING SUBSIDIES OF VARIOUS KINDS INCLUDING WELFARE PAYMENTS THAT DONOT BOOST THE SOCIAL SECTOR

TIME FOR POLITICAL COURAGE
IMPLIES RBI

Ø  IF THE GOVERNMENT ANNOUCES AUSTERITY FOR IT SELF,IT COULD EKE OUT SOME EXTRA RUPEES TO SPEND ON INVESMTENT WHICH RBI CORRECTLY IDENITIFIES AS WHAT WOULD REVERSE THE DOWNSWING

Ø  BUT WHAT RBI AND OTHER FISCAL FUNDAMENTALISM HAVE SO FAR REFUSED TO ACKNWLEDGE IS THAT A SEVER DEMAND SLOW DOWN ACROSS SECTORS CALL FOR EXPANDING THE FISCAL DEFICIT TO PUSH UP INVESTMENT IN THE INFRASTRUCTURE

Ø  UNLESS RIVATE INVESTMENT ROARS BACK INTO ACTION AND STARTS COMPETING FOR FUNDS WITH THE GOVERNMENT THERE IS LITTLE RISK OF EITHER THE INTEREST RATES GOING UP OR DOCILE INFLATION SUDDENLY TURNING AGGRESSIVE

Ø  CURRENT SITUATION CALLS FOR FISCAL EXPANSION ALONG WITH MEASURES TO REVIVE PRIVATE INVESTMENT IN INFRASTRUCTURE

Ø   CALL FOR STURCTURAL REFORM AND INDIA CAN NOT PROGRESS AS A NATION WITH STRICKEN POWER SECTOR.