Harkaranomics

The new financial year has started with a health crisis and complete nationwide lockdown. Lots of industries and sectors are suffering liquidity crisis in this pandemic, but a good news for Indian economy is that after lots of trouble, their Telecommunication Industry is reviving. The Aggregate Gross Revenue (AGR) issue in telecom industry came up in 2019. In October 2019, The Supreme Court declared that telecommunication industry has to pay 1.47 lakh crore rupees collectively as their AGR dues till 23rd January 2020. Telecom industry filed a review petition against this charge, which was finally rejected by the Supreme Court on 16th January 2020. There are total 15 companies under this AGR charge but currently only three companies are providing telecom services (the big 3 - Bharti Airtel, Reliance Jio and Vodafone Idea). In March 2020, Bharti Airtel estimated their AGR dues to be 13,000 crore rupees but paid a total of 18,000 crore rupees. Whereas the struggling Vodafone Idea was u...

India is already struggling with the economic slowdown and now the 21 days lockdown is again bad news for the economy. UN trade report says that global economy might enter the recession, but India and China will survive in this situation. Although the impact of global economy shutdown will also be on India's GDP growth. Indian economy is already struggling due to lack of consumer demand, further downfalls in the production will affect negatively to major sectors of the country. The two major impacts of the 21 days lockdown will be on general consumer demand and international demand (exports), secondly to the financial stability of the economy. Except January India faced negative growth in exports, productions were falling even before the lockdown due to demand failure, stock market is badly surviving and is currently at 3 years low.  Fed is continuously reducing interest rates, foreign investors are selling off their investments in India, further investing them in US. Mar...

Uncertainty is the biggest risk for business. The COVID-19 breakdown had resulted in a complete lock down in Italy, a work from home wave has emerged globally. Economists are predicting that global economy could enter the recession. People are not going out, avoiding social and business gatherings, imports and exports are declining, IPL, Tokyo Olympics and other sports events are postponed, oil price war between Russia and OPEC has started, maybe all these things are sign to a recession. Although, recession in global economy is defined as a situation when economy faces two consecutive decline in GDP growth numbers. But right now, situation is more tough. The year 2020 started with World War III fear and Australia's bush fires, then came the coronavirus. This calendar year has not been that much good for our planet. Coming to the oil price war initiated between Saudi Arabia and Russia, crude oil faced nearly 18- year low price of $20.37 a barrel. Buying oil in cash and sellin...

Last thursday night, when the news came up that The Reserve Bank Of India (RBI) had placed Yes Bank under moratorium, left the depositors and investors of Yes Bank in uneasy conditions. This ' Moratorium ' means that a customer or account holder can now withdraw a maximum of Rupees 50,000 in this period of his or her savings or current or any other deposit accounts with Yes Bank. If you have more than one account with Yes Bank then the moratorium will apply cumulatively on all yours accounts.  Yes Bank is India's fifth largest private bank which will now be helped by The State Bank of India (SBI) to revive. The bank is facing these bad days due to surging bad loans and improper management. RBI declined to extend the term of founder Rana Kapoor as Chief Executive in 2018, is being used as a little excuse by the bank also. In order to fit themselves into the required regulatory requirements, in order to operate in the economy, which are CRR, SLR, other ratios an...

I presented my point of view telling what should be done in The Budget 2020 to acheive the $5 trillion economy target. The Finance Minister Nirmala Sitharaman presented the longest budget ever in the history of independent India, but the budget seems to be long on words and short on numbers. This was one of the most difficult budget ever presented in the economy. The two-third of the budget was focusing on state issues, disinvestments in government’s assets, and the income tax cut. "The three things Budget is focusing on is to improve standard of living, boost economic development, and build a humane and compassionate society", is what the Finance Minister said. Currently economy is struggling to revive growth, for which disinvestments in government’s stake is not a productive step, but government is doing it to cover the deficit. The Keynesian economics theory gave a simple solution to the Great Depression that government should increase the spending and decrease the tax,...

Acheiving $5 trillion economy by 2024-25, the dream of the Prime Minister of India, is difficult but not impossible, these are the words of Nitin Gadkari. From 2014 to 2019 India moved to $2.7 trillion economy from $1.7 trillion economy. The upcoming budget is very important for the country, as we all are expecting our government to take us back to the road of GDP growth at a good number (7.5%) . According to me, acheiving the target of $5 trillion economy is the only possible way to win hearts and votes of educated Indians for BJP. The Budget 2020, right now can be either the start to $5 trillion economy or it can make economy worsen. "India would need to grow at 9 per cent to achieve the target of USD 5 trillion economy by 2024, which currently looks unimaginably ambitious", these are the words of economist R Nagaraj. The most important thing finance ministry focusing on is to create an investor friendly environment to build confidence between investors and economy, bot...