Protest in Kerala's Idukki demanding protection from wild elephants

New Delhi, Jan 31: Substantial competition and low tariff rates by telecom operators since 2016 have led to a financial stress in the sector, the Economic Survey said on Friday.

The data price in the country came down by over 99 per cent during 2016-2019, making it among the lowest tariff in the world, according to the survey.

"Since 2016, the sector has witnessed substantial competition and price cutting by the telecom service providers (TSPs), creating financial stress in the sector. As a result, the sector is experiencing consolidation. While some operators have filed for bankruptcy, others have merged, in their quest to improve viability," the survey report said.

In April-June 2019, the price of data was Rs 7.7 per gigabyte (GB) as compared to Rs 200 per GB in June 2016, it added.

"The Average Revenue Per User (ARPU) for GSM based mobile services has also gone down substantially from Rs 126 in June 2016 to Rs 74.30 in June 2019," the survey said.

The tariff war started in the market with entry of new telecom operator Reliance Jio in September 2016.

"BSNL and MTNL are also affected by the tariff war that has impacted their cash flow resulting in mounting losses," the survey said.

The financial health of the public sector telecom firms plummeted to a level where they have been finding hard to pay employees salaries in time.

The government has drawn up a plan to revive these PSUs which is still in works.

The revival plan consists of several measures, including reduction of staff cost through voluntary retirement scheme, allotment of spectrum for 4G services, monetisation of land and building, tower and fibre assets of BSNL and MTNL, debt restructuring through sovereign guarantee bonds and ''in-principle'' approval for merger of BSNL and MTNL.

The survey said that the wireless telephony now constitutes 98.27 per cent of all subscriptions whereas share of landline telephones now stands at only 1.73 per cent where market share is dominated by private sector players.

"The overall tele-density in India stands at 90.45 per cent, the rural tele-density being 57.35 per cent and urban teledensity being 160.71 per cent at the end of September 2019. The private sector dominates with a share of 88.81 per cent (106.06 crore connections) at the end of September, 2019 while the share of public sector was 11.19 per cent (13.36 crore connections)," the survey said.

The lower price of data has also lead in surge of broadband connections and average consumption of the internet.

Total broadband connections increased by about ten times, from 6.1 crore in 2014 to 59.46 crore in June 2019, the survey said.

The number of internet subscribers (both broadband and narrowband put together) stood at 66.53 crore at the end of June 2019 as compared to 25.16 crore in 2014.

The number of mobile internet subscribers was 64.36 lakh at the end of June 2019 while the number of wireline internet subscribers was 2.17 crore.

"India is now the global leader in monthly data consumption, with average consumption per subscriber per month increasing 157 times from 62 MB in 2014 to 9.8 GB in June 2019. The cost of data has also reduced substantially, enabling affordable internet access for millions of citizens," the survey said.

New Delhi, Apr 20: The Centre on Monday said that India's COVID-19 doubling rate has improved to 7.5 days from 3.4 days before the lockdown was enforced to check the spread of the coronavirus.

"India's doubling rate before the lockdown was 3.4 days. It has now improved to 7.5 days. As per data on April 19, in 18 States, the rate is better than the national average," said Lav Agarwal, Joint Secretary, Union Health and Family Welfare Ministry, at a daily briefing here.

"The number of districts where no case has been reported in the last 14 days has increased to 59 in 23 States and UTs. Goa is now COVID-19 free," he said.

India's total number of coronavirus positive cases has risen to 17,656 including 14,255 active cases, 2,842 cured/discharged/migrated and 559 deaths, according to the Ministry of Health and Family Welfare.

"Mahe in Puducherry, Kodagu in Karnataka and Pauri Garhwal in Uttarakhand have not reported any COVID-19 case in last 28 days," said Agarwal.

Let us take a look at the top developments of the day regarding the COVID-19 situation in the country:

1. There are 23 active COVID-19 cases in Himachal Pradesh. 11 patients have recovered, four migrated out of the State and one person succumbed to the disease. A total of 2,902 people have been tested for COVID-19 so far, said Himachal Pradesh Health Department.

2. The number of COVID-19 cases has risen to 408 in Karnataka including 16 deaths and 112 discharges, according to the state Health Department. 18 new cases have been reported in the last 24 hours.

3. "14 new COVID-19 cases reported, all from Kashmir. The total number of cases now stands at 368, Jammu-55 and Kashmir-313," said Rohit Kansal, Principal Secretary, Planning, Union Territory of Jammu and Kashmir administration.

4. According to Punya Salila Srivastava, Joint Secretary, Ministry of Home Affairs, the Ministry wrote to Kerala government yesterday, expressing concerns over modified guidelines regarding lockdown. "Kerala has allowed some activities that violate the Ministry's instructions issued under the Disaster Management Act," she said.

5. Five more police personnel from Chandni Mahal police station have tested positive for COVID-19. Till now eight personnel from the police station have tested positive for the virus, according to the Delhi Police.

6. Total 57 new COVID19 cases and two deaths have been reported today. Cumulative positive cases now stand at 1,535, and toll at 25, said Rajasthan's Health Department.

7. Indian Council of Medical Research (ICMR) has said that RTPCR kits are US FDA approved and have good standards and these should be stored under 20-degree temperature for better result.

8. "A total of 283 more COVID-19 cases have been reported in Maharashtra, taking cumulative positive cases in the State to 4,483, as of 11 am today. Of the 283 new cases, Mumbai has recorded 187," said Rajesh Tope, Maharashtra Health Minister.

9. One new COVID-19 positive case was reported today in Bokaro, taking the total number of cases in the State to 42, said Nitin Madan Kulkarni, Jharkhand's Health Secretary.
10. According to Punjab's Health Department, only one person has been tested positive for COVID-19 in the State today. The person is a contact of the COVID-19 patient.

11. "There is only one red zone district in Chhattisgarh. For the last 72 hours, no COVID-19 positive patient has been found even in that red zone district. I am hoping that whole of Chhattisgarh will be green zone soon," said Chief Minister Bhupesh Baghel.

12. Six new COVID-19 cases were reported in Kerala, all from Kannur, of which 5 have foreign travel history. Total cases in the State at 408, including 114 active cases, said Kerala Chief Minister Pinarayi Vijayan.

Meanwhile, the Centre has constituted six Inter-Ministerial Central Teams (IMCTs), two each for West Bengal and Maharashtra and one each for Madhya Pradesh and Rajasthan to make an on-spot assessment of the situation and issue necessary directions to the state authorities for their redressal and submit a report to the Central government in the larger interest of the general public.

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.