Last updated: 13 Oct, 2020 | 08:04 am
Catching up to last week’s Macro insights, U.S. markets remained volatile owing a lot to President’s Trump health and his view for another stimulus after Fed’s Powell urged the need for a stimulus for reviving the economy further.
The Indian government has announced a fresh set of measures in the hope of front-loading consumer spending and capital expenditure. This is the second fiscal support package announced to revive the economy. Here’s a summary of the most important measures:
The steps announced by the government should help to boost consumption, without putting much burden on the state’s finances.
Retail inflation rose to an 8-month high of 7.34% in September from 6.69% in August, on the back of higher food prices, according to government data. In its bi-monthly policy meeting held last week, the RBI had kept the repo rate unchanged, while expecting that the CPI inflation will be around 6.8% for Q2:2020-21. The inflation is expected to ease in the second half of FY21 to about 4.5-5.4%, as per the central bank’s estimates.
The industrial production declined by 8% in August, impacted due to lower output of manufacturing, mining and power generation sectors. The contraction has been slower than the previous months of July (-10.4%) and June (-15.7%).