Mufti should be sent to mental asylum for criticising saffron jersey: Sanjay Raut

New Delhi, May 24: The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report.

According to Dun & Bradstreet's latest Economic Observer, the country's economic recovery will depend on the efficacy and duration of implementation of the government's stimulus package.

"The multiplier effect of the stimulus measures on the economy will depend on three key aspects i.e. the time taken for effecting the withdrawal of the lockdown, the efficacy of implementation and duration of execution of the measures announced," Dun & Bradstreet India Chief Economist Arun Singh said.

The report noted that the government's larger-than-expected stimulus package is likely to re-start economic activities.

Besides, measures taken by the Reserve Bank of India like reducing the repo rate by a further 40 basis points to 4 per cent, extending the moratorium period by three months and facilitating working capital financing will also help stimulate the momentum.

Singh said while the measures announced by the government are "positive", most of them have been directed towards strengthening the supply side of the economy, and "it is to be noted that supply needs to be matched with demand", he said.

Besides, "in the absence of cash-in-hand benefits under the government's stimulus package, demand for goods and services is expected to remain depressed", he added.

He further said the loss in income and employment opportunities, and cautiousness among consumers, will lead to a delayed recovery in consumer demand, even after the pandemic. As debt and bad loan levels increase, the banking sector might face challenges.

The report further noted that even as the monetary stimulus is expected to inject liquidity and stimulate demand for a wider section of the economy, the channelisation of funds from the financial institutions will be subjected to several constraints.

The foremost concern being increase in risk averseness, as the balance sheets of firms, households, and banks/NBFCs have weakened considerably and low demand for funds by firms as production activities have been on a standstill during the lockdown period, Singh said.

India has been under lockdown since March 25 to contain the spread of the coronavirus, resulting in supply disruptions and demand compression.

Prime Minister Narendra Modi imposed a nationwide lockdown to control the spread of coronavirus on March 25. It has been extended thrice, with some relaxations. The fourth phase of the lockdown is set to expire on May 31. 

New Delhi, Jun 26: Petrol prices in the national capital have reached Rs 80.13 per litre on June 26, up by 21 paise from yesterday’s Rs 79.92 per litre; while diesel prices in Delhi also rose to Rs 80.19 per litre – up by 17 paise compared to yesterday’s Rs 80.02 per litre.

This is the 20th consecutive day that fuel prices have been hiked by oil marketing companies (OMCs). The hikes began from June 8 after a 83-day halt on revised pricing during the lockdown period.

The state government’s increased value-added tax (VAT) on diesel since May is causing the fuel’s prices to soar in Delhi. VAT was increased to 30 percent for both petrol and diesel from 27 percent and 16.75 percent, respectively.

Coupled with the Centre’s hiked excise duty of Rs 3 per litre since March 14 and then Rs 10 per litre on petrol and Rs 13 per litre on diesel since May 5 has affected prices.

The hike on diesel prices is unusual, as the government traditionally keeps the price for the fuel low due to its impact on agriculture and other high consumption economic activities.

May 20: Prime Minister K P Sharma Oli on Tuesday asserted that Lipulekh, Kalapani and Limpiyadhura belong to Nepal and vowed to "reclaim" them from India through political and diplomatic efforts, as his Cabinet endorsed a new political map showing the three areas as Nepalese territory.

Addressing Parliament, Oli said the territories belong to Nepal “but India has made it a disputed area by keeping its Army there”. “Nepalis were blocked from going there after India stationed its Army,” he said.

“India has deployed its troops in Kalapani since 1962 and our rulers in the past hesitated to raise the issue,” he said, asserting, “We will reclaim and get them back.”

The prime minister asserted that the Nepal government will make political and diplomatic efforts to reclaim the territory.

Oli also expressed the hope that India will “follow the path of truth, shown by Satya Meva Jayate, which is mentioned in the Ashoka Chakra, the national symbol of India”.

The prime minister’s remarks came a day after the Cabinet headed by him endorsed a new political map showing Lipulekh, Kalapani and Limpiyadhura under Nepal’s territory.

Foreign Minister Pradeep Kumar Gyawali said the official map of Nepal will soon be made public by the Ministry of Land Management. The move announced by Gyawali came weeks after he said that efforts were on to resolve the border issue with India through diplomatic initiatives.

Nepal''s ruling Nepal Communist Party lawmakers have also tabled a special resolution in Parliament demanding return of Kalapani, Limpiyadhura and Lipulekh to Nepal.

The Lipulekh pass is a far western point near Kalapani, a disputed border area between Nepal and India. Both India and Nepal claim Kalapani as an integral part of their territory - India as part of Uttarakhand’s Pithoragarh district and Nepal as part of Dharchula district.

Gyawali last week summoned the Indian Ambassador Vinay Mohan Kwatra and handed over a diplomatic note to him to protest against the construction of a key road connecting the Lipulekh pass with Dharchula in Uttarakhand.

India has said that the recently-inaugurated road section in Pithoragarh district in Uttarakhand lies completely within its territory. Indian Army chief Gen MM Naravane last week said that there were reasons to believe that Nepal objected to India''s newly-inaugurated road linking Lipulekh Pass with Dharchula in Uttarakhand at the behest of "someone else", in an apparent reference to a possible role by China on the matter.

He said there was no dispute whatsoever between India and Nepal in the area and road laid was very much within the Indian side.

The 80-KM-long strategically crucial road at a height of 17,000 KM along the border with China in Uttarakhand was thrown open by Defence Minister Rajnath Singh earlier this month.

Nepal has raised objection to the inauguration of the road, saying the "unilateral act" was against the understanding reached between the two countries on resolving the border issues. China on Tuesday said the Kalapani border issue is between India and Nepal as it hoped that the two neighbours could refrain from "unilateral actions" and properly resolve their disputes through friendly consultations.

After the endorsement of Nepal’s new map senior ruling party leader and member of Nepal Communist Party Standing Committee Ganesh Shah said the new move may escalate unnecessary tension between Nepal and India at a time when the country is fighting the coronavirus.

"The Nepal government should soon start a dialogue with India to resolve the matter through political and diplomatic moves," he said.

The new map includes 335-km land area including Limpiyadhura in the Nepalese territory.

The new map was drawn on the basis of the Sugauli Treaty of 1816 signed between Nepal and then the British India government and other relevant documents, which suggests Limpiyadhura, from where the Kali river originated, is Nepal''s border with India, The Kathmandu Post quoted an official at the Ministry of Land Reform and Management as saying.

India and Nepal are at a row after the Indian side issued a new political map incorporating Kalapani and Lipulekh on its side of the border in October last year.

The tension further escalated after India inaugurated the road link connecting Kailash Mansarovar, a holy pilgrimage site situated at Tibet, China, that passes through the territory belonging to Nepal.