Daily Financial News Analysis – 1st Jan’20 – Free PDF Download

Rs 102 lakh crore infra projects

• FM unveiled a ₹102 lakh crore national infrastructure pipeline.
• GoI’s vision: $5 trillion economy by 2024-25
• Task Force headed by Economic Affairs Secretary.
• It will prepare a road map for the “national infrastructure pipeline“
  1. 2019-20 to 2024-25

• NIP will enable a forward outlook on infrastructure projects.
  1. Create jobs
  2. improve ease of living
  3. provide equitable access to infrastructure for all
  4. Make growth more inclusive
• NIP includes economic and social infrastructure projects.

Small savings schemes

• Good news for the investors.
• Government will not to cut the interest rate on the SSS

1. For the quarter January to March 2020

• At the beginning of each quarter govt sets rate for the rest of the quarter.
• The interest rate will vary each quarter as decided by the government.
• National Savings Certificates (NSC)
• KVP
• Time-deposits
• Public Provident Fund (PPF)
• Senior Citizens Savings Scheme (SCSS)
• Sukanya Samriddhi Yojana (SSY)

Railways fares hiked

• From January 1, 2020.
• Railway Board Chairman VK Yadav had recently hinted at the need for rationalising railway fares.
• Indian Railways has termed the fare hike as marginal.
• The revised tariff charts will be displayed on railway stations with effect from January 1, 2020.
• The last time Indian Railways revised passenger fares was in 2014-15.
• 7th Pay Commission payouts
• Increased modern passenger amenities
• Faster modenisation: Increased revenue collection from passenger

Current Account Deficit

• September quarter: current account deficit (CAD) shrank sharply

1. $6.3 billion or 9% of the gross domestic product

• Decline in imports

1. merchandise trade deficit in June quarter: $46.2 billion
2. September: $38.1 billion

Core sector output

• Contracted for the 4th consecutive month in November.

1. slower pace of 1.5%
2. October: it was 8%

• Growth in the output of fertiliser, cement and refinery products.
• It raises expectations of industrial production moving into positive territory.
• The core sector has a 27% weightage in the Index of Industrial Production.
• Output of coal, crude oil, electricity, steel and natural gas contracted.

1. industrial demand
2. auto and capital goods
3. state of the economy

Govt Cuts Spending

• Centre has further slowed the pace of spending in November.
• Continued deceleration in tax revenue growth.
• The Centre has imposed strict curbs on revenue expenditure.
• The shortfall in net tax receipts could be as high as Rs 3 lakh crore.

Inter-Creditor Agreements

• Leading banks have written to the RBI.
• Extend the deadline for signing inter-creditor agreements by 3 months

1. cases close to resolution are not referred to NCLT

• ICA mechanism: to arrive at a resolution plan within a specific period (30+180 days) for bad loans without entering the NCLT process.

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