Stopping religious activities alone is strange, says top court
- It was “strange” that the State governments were opening up activities involving economic interests but were citing the COVID-19 pandemic when it came to religious activities, the Supreme Court said on Friday.
- “We find it strange that they are willing to allow activities involving economic interests, but if it involves religion, they cite COVID to say they cannot open,” Chief Justice Bobde remarked orally.
‘RBI at end of rate-cut cycle, fiscal steps must for recovery’
- The Reserve Bank is at the end of its rate cut cycle as inflation is unlikely to decline materially from the current level, and the onus of economic recovery has now shifted to the government, economists at SBI said.
- High inflation was cited as the prime reason for the unanimous decision to hold rates.
- Pandemic in March this year in order to push economic growth, but surprised many by holding rates at the August review as inflation overshot its target. “Fiscal policy should play a decisive role, if we have to nurture any hopes of a fast paced recovery,
- Estimates show the large procurement by the government may have resulted in 0.35-0.40% upward impact.
‘Shipments to China driving export recovery’
- The improvement in the country’s export numbers in July was led by a 78% spike in shipments to China and other Asian economies that had successfully contained the pandemic, Crisil said in a report. These destinations constitute 16% of the overall exports basket.
- “Exports are flowing back to economies that have checked the affliction. That explains why exports to certain economies are looking up, while overall exports are still declining, though at a slower pace,” according to Crisil house economists DharmaKirti Joshi and Pankhuri Tandon.