1. According to by the National Statistical Office estimates released on 27th November 2020, India’s Gross Domestic Product (GDP) contracted 7.5% in the second quarter of 2020-21, following the record 23.9% decline recorded in the first quarter.
While most estimated a contraction of around 10%, the Reserve Bank of India projected a 8.6% decline in the second quarter.
Agriculture, which was the only sector to record growth between April and June this year, grew at the same pace of 3.4% in the second quarter, while manufacturing gross value-added (GVA) staged a sharp recovery to record 0.6% growth between July and September after collapsing 39.3% in the first quarter.
2. Output at India’s eight core sectors shrank 2.5% in October with the contraction widening from September’s revised 0.1% decline as steel production slid again after a brief revival in the preceding month.
3. According to official data released on 7th November 2020 by Union Government’s fiscal deficit further widened to ₹9.53 lakh crore, or close to 120% of the annual budget estimate, at the end of October of the current fiscal. The deficit widened mainly due to poor revenue realisation.
4. According to the Emerging Markets Financial Institutions Outlook report of the Moody’s Investors Service,bank capital will shrink moderately in Asia’s emerging markets over the next two years with banks in India and Sri Lanka expected to post larger declines in the absence of public or private funds injections.
Non Performing Loans (NPLs) will rise most for banks in India and Thailand because of the greater shock to their economies and the historically poor performance of certain loan types. In India, stress among non-bank financial institutions will also curtail their capacity to lend.
5. Gross revenues from the Goods and Services Tax (GST) crossed ₹1 lakh crore for the second month in a row, with ₹1,04,963 crore collected in November 2020. This was 1.4% higher than a year ago.
6. According to preliminary data from the Commerce and Industry Ministry, India’s merchandise exports fell 9.1% in November to $23.43 billion, while imports fell 13.3% to $33.39 billion.
7. The Reserve Bank of India (RBI) had issued an order to HDFC Bank on 4th December 2020 asking the bank to temporarily stop all new digital banking initiatives and sourcing of new credit card customers.
8. HCL Technologies chairperson Roshni Nadar Malhotra, with a net worth of ₹54,850 crore, tops the Kotak Wealth Hurun list of India’s wealthiest women.
9. RBI's Policy rates
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on 4th December 2020 left benchmark interest rates unchanged and retained an ‘accommodative’ stance as it prioritised support for the economy over ‘sticky’ inflation amid the COVID-19 pandemic.
The MPC kept the RBI’s key lending rate, the repo rate, steady at 4%.
The RBI also brightened its outlook for the economy, projecting that the GDP contraction would narrow to 7.5% for the financial year ending in March 2021, a full 2 percentage points shallower than the 9.5% it had forecast in October.
Source:The Hindu
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