Finance Minister Nirmala Sitharaman is angry and frustrated. For months, she told people close to her that critics, especially the media, overstated theeconomic problems, and underplayed the good news. In her mind, the Centre did everything it could to revive growth in this crisis. The results are there for everyone to see. According to her, and the Reserve Bank of India (RBI), the country’s economy will witness a V-shaped recovery, and be back on the high-growth track by mid-2021.
However, some experts aren’t sure. They feel that while a few sectors can bounce back early, others will require regular policy interventions until 2022. Even the central bank seems divided.
One of its senior officials predicted growth stability to come only in 2022, which may point to more of a U-shaped trajectory. The real fear is that by the end of the pandemic, the informal sector, which accounts for a large proportion of Gross Domestic Product (GDP), investments, and jobs, may be decimated.
The contours of Budget 2021, Sitharaman’s third one, will be dictated by this contradiction, and the dichotomy of views. If the FM is convinced of a quick revival within the next quarter or so, her speech will be an incremental extension of the decisions and actions, which include the various stimulus packages, in the past nine months. She will feel that she has to merely tread the same path of policy reforms, investment boosters, and demand rejuvenation.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms