Economy Watch

In Tax

Economy Watch provides an in-depth review of salient developments in India’s macroeconomy and economic policy in a global context.
It has established itself as a thought leadership publication, providing valuable inputs for policymakers in the central and state governments, academicians, industry and businesses and other stakeholders.

Related topics Tax

Economy Watch was launched for public distribution soon after demonetisation in December 2016. Since then, nearly 40 issues have been published.

It covers various macro-fiscal dimensions of the Indian economy including growth, inflation, government finances, external trade, monetary and financial sectors. It places India in a comparative economic framework using selected developed and developing countries.

Two innovative indices have been developed to capture changes in aggregate demand and macroeconomic imbalances in the Indian economy. The analysis in the Economy Watch is based on monthly, quarterly and annual data sourced from national and international sources.

Every month, a focused theme of contemporary economic importance is identified for a deep and insightful analysis which provides useful inputs and recommendations.

Key highlights of November 2020
  1. IIP growth turned positive for the first time since March 2020 but remained low at 0.2% in September 2020.
  2. In October 2020, PMI manufacturing increased to 58.9, its highest level in over a decade. PMI services at 54.1, crossed the threshold of 50 for the first time since February 2020.
  3. At 7.6% in October 2020, CPI inflation continued to breach the 6% upper tolerance limit of the RBI’s inflation target range for the seventh successive month.
  4. As per the CGA, center’s gross taxes contracted by (-)21.6% during April-September FY21 as compared to a growth of 1.5% in the corresponding period of FY20.
  5. During 1HFY21, center’s capital expenditure contracted by (-)11.6% while revenue expenditures showed a subdued growth of 1.0%.
  6. During 1HFY21, center’s fiscal deficit stood at 114.8% of the annual budgeted target while the corresponding number for revenue deficit was 125.2%.
  7. Credit growth remained subdued at 5.1% in September 2020, its lowest level since May 2017, falling from 5.5% in August 2020.
  8. In 1HFY21, net FDI inflows were at a historic high of US$26.8 billion. By 6 November 2020, India’s foreign exchange reserves were at an unprecedented level of US$568.5 billion.
  9. Merchandise exports contracted by (-)5.1% in October 2020 as compared to a growth of 6.0% in September 2020.
  10. The OECD projected the Emerging Asia region to contract by (-)2.0% in 2020 with a contraction of (-)10.2% forecasted for India.

Click here to download the latest issue

Contact us

Like what you’ve seen? Get in touch to learn more.