Category: National

  • There is a growing intolerance against the judiciary fuelled by social media, says Supreme Court judge

    Imputations are being made against judges for their decisions, says Sanjay Kishan Kaul during an online lecture

    Supreme Court judge Justice Sanjay Kishan Kaul said there was a growing intolerance against the judiciary fuelled by the social media.

    He said imputations were being made against judges for their decisions. Damage was done to the judicial institution if the tendency to criticise crossed certain lines.

    “Criticism is also information but boundaries need to be made or if such criticism becomes part of misinformation… This is not good for the system… If you mistrust every system, then you do not have a system and all you have is anarchy,” Justice Kaul said.

    He said this during an online lecture on Sunday on ‘Freedom of Speech in times of COVID-19 – Fake news and misinformation’ organised by the MBA Academy, Madras Bar Association. The event saw the participation of S. Parthasarathy, chairman of the MBA Academy, and M. Baskar, secretary of the Madras Bar Association.

    Justice Kaul was part of the Bench which recently took suo motu cognisance of the migrant workers’ crisis. In a recent hearing of the case, the Bench saw Solicitor General Tushar Mehta submit how “a handful of people give certificates to judges of neutrality only if judges abuse the Executive!”

    The judge said it was a struggle to regulate social media without restricting free speech. He said “fake news propensity has aggravated, creating hostility against identifiable groups” even before the onset of the pandemic in the country.

    He said there was a lot of information available during COVID-19 period, including its “remedies”, the origin, people who were “helping the spread of the virus” and such. These messages even take on religious and racial undertones.

    Justice Kaul said there was hardly any discernment or effort to know from where information had come or who had sent it on social media. Messages received on social media platforms were “mindlessly forwarded” creating panic and triggering hate at a difficult time when people were worried about their livelihood and basic essentials.

    He noted how overall intolerance had exceeded limits. People rushed to the courts if something was found even slightly contrary to their religion and belief.

    Even prior to the COVID-19 period, “we had become increasingly intolerant of the opinions that do not match with ours. What is perceived as the middle path becomes the casualty. There are various shades of grey, it is not always black and white. As a democratic polity, we have to appreciate the opinion of others… People who hold opposing views call each other as a ‘Modi bhakt’ or ‘urban naxal”, etc…. Both sections are equally intolerant,” Justice Kaul said.

    With inputs from The Hindu

  • Coronavirus | PM CARES is not a public authority under RTI Act: PMO

    Fund is not public authority, says reply

    The Prime Minister’s Office (PMO) has refused to disclose details on the creation and operation of the PM CARES Fund, telling a Right to Information applicant that the fund is “not a public authority” under the ambit of the RTI Act, 2005.

    The Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund was set to accept donations and provide relief during the COVID-19 pandemic, and other similar emergencies.

    A few days after Prime Minister Narendra Modi announced the launch of the Fund on his Twitter account on March 28, Sri Harsha Kandukuri filed an RTI application on April 1, asking the PMO to provide the Fund’s trust deed and all government orders, notifications and circulars relating to its creation and operation.

    “When we already have the Prime Minister’s National Relief Fund (PMNRF), having another fund did not make sense to me. I was curious about the composition and objectives of the Trust. I wanted to read the trust deed,” says Mr. Kandukuri, who is a law student at the Azim Premji University in Bengaluru.

    When he did not receive any response within 30 days, he appealed. Finally, he received a response from the PMO’s information officer dated May 29.

    “PM CARES Fund is not a Public Authority under the ambit of Secon 2(h) of the RTI Act, 2005. However, relevant information in respect of PM CARES Fund may be seen on the Website pmcares.gov.in,” the reply said.

    The relevant section of the Act defines a “public authority” as “any authority or body or institution of self-government established or constituted — (a) by or under the Constitution; (b) by any other law made by Parliament; (c) by any other law made by State Legislature; (d) by notification issued or order made by the appropriate Government — and includes any (i) body owned, controlled or substantially financed; (ii) non‑Government Organisation substantially financed, directly or indirectly by funds provided by the appropriate Government.”

    Mr. Kandukuri now plans to appeal further. “The name, composition of the trust, control, usage of emblem, government domain name — everything signifies that it is a public authority,” he said, pointing out that the PM is the ex-officio chairman of the Trust, while three cabinet ministers are ex-officio trustees. “The composition of the trust is enough to show that Government exercises substantive control over the trust, making it a public authority,” he said.

    Another RTI request on the issue, filed by activist Vikrant Togad, had also been refused in April, with the PMO citing a Supreme Court observation that “indiscriminate and impractical demands under RTI Act for disclosure of all and sundry information would be counterproductive”.

    There is also ambiguity regarding whether the PMNRF (Prime Minister’s National Relief Fund) is subject to the RTI Act. While the Central Information Commission directed it to disclose information in 2008, a division bench of the Delhi High Court gave a split opinion on the question of whether PMNRF is a public authority under the Act.

    With inputs from The Hindu

  • Covid-19 | India registers highest single-day spike of 8,380 COVID-19 cases

    As Lockdown 4.0 comes to an end, the Ministry of Home Affairs has released a new set of guidelines called ‘Unlock 1.0’.

    Even as India registered a highest single-day spike of 8,380 COVID-19 cases in the past 24 hours, the Centre has relaxed the lockdown rules to allow permission for malls, restaurants, and religious places to function in all areas except containment zones from June 8.

    All kinds of social, political, sports, entertainment, academic, cultural and religious congregations would, however, remain suspended.

    With inputs from The Hindu

  • Coronavirus lockdown | Government eases a slew of restrictions; malls, religious places to open

    Lockdown as notified earlier to continue in Srinagar: District Admin Srinagar

    Lockdown shall continue to be implemented strictly in containment zones, says Union Home Ministry.

    As Lockdown 4.0 comes to an end, the Ministry of Home Affairs (MHA) issued new guidelines called Unlock 1.0 allowing malls, restaurants, religious places to open in all areas except containment zones from June 8. It however prohibited opening of bars, gymnasiums, entertainment parks, cinema halls, metro rail and international air travel.

    The permit system for inter-State movement of vehicles has been removed and there shall be no restriction on movement within and outside a State. If the local administration has to regulate movement in wake of a surge in number of COVID-19 cases, it will have to give wide publicity in advance regarding the procedure and restrictions to be followed.

    The grading of areas in red, orange and green zones is no longer in force but State government could identify buffer zones outside containment zones and impose restrictions.

    The lockdown was imposed first on March 24 in wake of the COVID-19 pandemic. Its fourth phase is to end on May 31. On Saturday, MHA issued guidelines under the Disaster Management Act, 2005, for “phased reopening” of areas outside the containment zones that will be effective till June 30. A decision to reopen schools and educational institutes will be taken in second phase in July. “The current phase of reopening, Unlock 1, will have an economic focus,” an MHA statement said.

    The activities and utilities that will remain suspended throughout the country are international air travel metro rail, cinema halls/theatres, gymnasiums, swimming pools, entertainment parks, bars, auditoriums and assembly halls. All kinds of social, political, sports, entertainment, academic, cultural and religious congregations will remain suspended.

    In Phase III, dates for their opening will be decided based on assessment of the situation. Shramik special trains and limited number of domestic flights and trains will continue to run.

    “All activities that were prohibited earlier will be opened up in areas outside containment zones in a phased manner with the stipulation of following Standard Operating Procedures (SOPs) to be prescribed by the Health Ministry,” said the statement.

    Religious places, hotels, restaurants and shopping malls will be permitted to open from June 8 and Health Ministry will issue SOPs.

     

    MHA said that lockdown shall continue to be implemented strictly in the containment zones that will be demarcated by the State governments. “Within the containment zones, strict perimeter control shall be maintained and only essential activities allowed,” MHA said.

    MHA said that the State government based on its assessment may prohibit certain activities outside the containment zones or impose restrictions as deemed necessary.

    MHA said that persons above 65 years of age, those with co-morbidities, pregnant women, and children below the age of 10 years are advised to stay at home, except for meeting essential requirements and for health purposes.

    MHA said that authorities are advised to encourage the use of the Aarogya Setu application.

    Wearing of face masks and maintaining social distancing is compulsory at all public and work places.

    The National Directives for COVID-19 management has been reiterated and advises work from home as far as possible. It prescribes staggered work hours, frequent sanitization and social distancing at workplaces. The number of people in marriage functions cannot exceed 50 and for funerals and last rites the number has been capped at 20. Spitting in public places will be a punishable offence.

    Any kind of violation of lockdown measures will be punishable under the DM Act, 2005.

    Maximum containment zones are in 13 cities — Mumbai, Chennai, Delhi / New Delhi, Ahmedabad, Thane, Pune, Hyderabad, Kolkata / Howrah, Indore (Madhya Pradesh), Jaipur, Jodhpur (Rajasthan), Chengalpattu and Thiruvallur (Tamil Nadu). These cities also account for 70% of total COVID-19 cases in the country.

    With inputs from The Hindu

  • LAC standoff | India-China border row will be resolved through diplomacy, says Rajnath Singh

    First comments by a member of the Cabinet Committee on Security on the almost month-long standoff.

    The standoff along the Line of Actual Control (LAC) with China would be resolved through diplomatic dialogue and India’s effort was also to ensure that tensions did not rise further, Defence Minister Rajnath Singh said on Saturday, in the first comments by a member of the Cabinet Committee on Security on the almost month-long standoff.

    “As of now, dialogue is on with China both at the military and diplomatic level,” Mr. Singh said in a television interview. India’s policy had been very clear that “we should have good relations with all neighbours.” Both India and China have resolved incidents that arose from time to time through dialogue and existing mechanisms, he said.

    Giving the example of the 73-day standoff at Doklam in 2017, he said India had held firm but the issue was eventually resolved through dialogue.

    Trump’s offer

    Asked about the U.S. President Donald Trump’s offer to mediate between India and China to resolve what he termed a “now raging border dispute”, Mr. Singh said that in a telephonic conversation with his U.S. counterpart Mark Esper on Friday he conveyed that the issue would be resolved bilaterally. “I told him [Mr. Esper] that India and China already had a mechanism that if there is any problem between the two countries, it is resolved by military and diplomatic dialogue. That mechanism is in place and the dialogue is on.” Both India and China had declined the U.S. offer of mediation.

    Except for a few statements from the Ministry of External Affairs (MEA) and one message from Army chief Gen. Manoj Naravane, the government had maintained silence on the ground situation. The MEA had said that the issues would be resolved according to five agreements on border management signed by India and China between 1993 and 2013.

    Mr. Singh did not respond to a direct question on whether Chinese troops crossed over into Indian territory. Instead he said there were differing perceptions on the alignment of the LAC due to which both sides patrolled across the LAC till their lines of perception. The country “should be assured that we will not allow India’s dignity to be hurt under any circumstances”, he said.

    The government has so far not said why the tense situation came about and why were the bilateral mechanisms activated other than the two acknowledged May 5 and 9 incidents which, the Army said, were locally resolved.

     

    Chinese troops movement

    However, sources said that beginning early May, Chinese troops moved inside Indian territory with vehicles and equipment at several points along the LAC, including Pangong Tso, several points in Galwan Nalah area and Demchok in eastern ladakh and Naku La in Sikkim, where PLA soldiers also blocked Indian patrols and pitched tents. In response, India, too, moved troops forward and also redeployed additional troops to the Ladakh region.

    Satellite images put out by Open Source Intelligence handles on Twitter show construction and build-up by Chinese troops at several points both inside Indian held territory and also on their side close to the LAC. Images by open source intelligence expert detresfa, an analyst with ShadowBreak Intl, show Chinese units moving upwards from the base area at finger 4-5 of Pangong Tso. India holds up to Finger 4 area of the 135-km-long Pangong Tso but claims up to Finger 8 while China claims up to Finger 2. Similarly, images show large-scale activity by Chinese troops at Gogra and Hot Springs sectors too.

    Images dated May 22, put out by an analyst with the Australian Strategic Policy Institute, an independent think tank based in Canberra, show about 80 tents set up by Chinese soldiers along the Galwan river. They also show vehicles and other structures.

    With inputs from The Hindu

  • Delhi-Moscow AI flight returns after pilot found COVID-19 positive

    The crew has been quarantined, another plane would be sent to Moscow to bring back the stranded Indians

    PTI

    An Air India flight from Delhi to Moscow on Saturday had to return midway after the airline’s ground team found out that one of the pilots had tested positive for novel coronavirus, officials said.

    “When the A320 plane, which did not have any passengers as it was heading to Moscow to bring back stranded Indians under Vande Bharat Mission, had reached Uzbekistan’s airspace, our team on ground realised that one of the pilots had tested COVID-positive,” senior Air India officials said.

    “The flight was immediately asked to return. It came back to Delhi at around 12:30 p.m. on Saturday,” the officials said.

    The crew has been quarantined. Another plane would be sent to Moscow to bring back the stranded Indians, according to the officials.

  • PM Modi’s letter lists Art 370 abrogation, Ram temple settlement among key achievements of 2nd term

    Here is the full text of Prime Minister Narendra Modi’s letter to the nation.

    My fellow Indian,

    This day last year began a golden chapter in the history of Indian democracy. It was after several decades that the people of the country voted back a full term government with a full majority.

    Once again, I bow to the 130 crore people of India and the democratic ethos of our nation. Your affection, goodwill and active cooperation have given new energy, and inspiration.

    During normal times, I would have been in your midst. However, the present circumstances do not permit that. That is why, I seek your blessings through this letter.

    Back in 2014, the people of the country voted for a substantive transformation. In the last five years, the nation saw how the administrative apparatus broke itself free of status quo and from the swamp of corruption as well as misgovernance. True to the spirit of ‘Antyodaya’ the lives of millions have been transformed.

    From 2014 to 2019, India’s stature rose significantly. The dignity of the poor was enhanced. The nation achieved financial inclusion, free gas and electricity connections, total sanitation coverage, and made progress towards ensuring ‘Housing for All.’

    India demonstrated its mettle through the surgical strike and air strike. At the same time, decades old demands such OROP, One Nation One Tax, better MSP for farmers were fulfilled.

    In 2019, the people of India voted not merely for continuity but also with a dream — of taking India to new heights. A dream of making India a global leader.

    Today, 130 crore people feel involved and integrated in the development trajectory of the nation. The light of ‘Jan Shakti’ and ‘Rashtra Shakti’ has ignited the entire nation. Powered by the Mantra of ‘SabkaSaath, SabkaVikas, SabkaVishwas’ India is marching forward in all spheres.

    My fellow Indian,

    In the last one year, some of the decisions were widely discussed and remain etched in public discourse.

    Article 370 furthered the spirit of national unity and integration. The Ram Mandir judgment, delivered unanimously by the Honourable Supreme Court of India, brought an amicable end to a debate persisting for centuries. The barbaric practice of Triple Talaq has been confined to the dustbin of history. Amendment to the Citizenship Act was an expression of India’s compassion and spirit of inclusiveness.

    But there have been many other decisions that have added momentum to the nation’s development trajectory.

    The creation of the post of the Chief of Defence Staff was a long pending reform that has improved coordination among the armed forces. At the same time, India has stepped up preparations for Mission Gaganyaan.

    Empowering the poor, farmers, women and youth has remained our priority.

    PM Kisan Samman Nidhi now includes all farmers. In just one year, more than ₹72,000 crore has been deposited in the accounts of over 9 crore 50 lakh farmers.

    The Jal Jeevan Mission will ensure supply of potable drinking water through piped connections to over 15 crore rural households.

    A huge campaign of free vaccination is being conducted for better health of our 50 crore livestock.

    For the first time in our country’s history, farmers, farm labourers, small shopkeepers and workers in unorganised sector are assured the provision of regular monthly pension of ₹3,000 after the age of 60 years.

    Besides the facility of availing bank loans, a separate department has also been created for fishermen. Several other decisions have been taken to strengthen the fisheries sector. This will boost the blue economy.

    Similarly, it has been decided to constitute a Vyapari Kalyan Board for timely resolution of the problems of the traders. Higher quantum of financial assistance is being provided to more than 7 crore women attached to self help groups. Recently the loans without guarantee for self help groups has been doubled to 20 lakh from the earlier 10 lakh.

    Keeping in mind the education of tribal children, we have begun the construction of more than 400 new Ekalavya Model Residential Schools.

    Several people friendly laws have been ushered in during the last year. Our Parliament has broken the decades-old record in terms of productivity. As a result, whether it be the Consumer Protection Act, the amendment to Chit Fund Law or laws to provide more protection to women, children and Divyang, their passage in the Parliament was expedited.

    As a result of the policies and decisions of the government, the rural-urban gap is shrinking. For the first time, the number of rural Indians using internet is 10% more than the number of urban Indians.

    The list of such historic actions and decisions taken in national interest would be too long to detail in this letter. But I must say that every day of this year, my government has worked round the clock with full vigour, taking and implementing these decisions.

    My fellow Indian,

    As we were moving ahead at fast pace in the fulfilment of hopes and aspirations of our countrymen, the coronavirus global pandemic engulfed our country as well.

    While on one hand are powers with great economic resources and state-of-the-art healthcare systems, on the other hand is our country besieged with problems amidst a vast population and limited resources.

    Many feared that India will become a problem for the world when corona hits India. But today, through sheer confidence and resilience, your have transformed the way the world looks at us. You have proven that the collective strength and potential of Indians is unparalleled compared even to the powerful and prosperous countries of the world. Be it clapping and lighting a lamp to the honouring of Corona Warriors by India’s armed forces, Janta curfew or by faithful adherence to rules during the nationwide lockdown, on every occasion you have shown that Ek Bharat is the guarantee for Shrestha Bharat.

    In a crisis of this magnitude, it can certainly not be claimed that no one suffered any inconvenience or discomfort. Our labourers, migrant workers, artisans & craftsmen in small scale industries, hawkers and such fellow countrymen have undergone tremendous suffering.

    However, we have to take care to ensure that inconveniences that we are facing do not turn into disasters. Hence, it is very important for every Indian to follow all rules and guidelines. We have displayed patience so far and we should continue to do so. This is one of the important reasons for India being safer and in a better state than many other countries. This is a long battle but we have started traversing on the path of victory, and victory is our collective resolve.

    In the last few days, a super cyclone has wrecked havoc in parts of West Bengal and Odisha. Here too, the resilience of the people of these states is noteworthy. Their courage inspires the people of India.

    Dear friends,

    At such a time, there is also a widespread debate on how the economies of various countries, including India’s, will recover. However, given the way India has surprised the world with its unity and resolve in the fight against coronavirus, there is a firm belief that we will also set an example in economic revival. In the economic domain, through their strength, 130 crore Indians can not only surprise the world but also inspire it.

    It is the need of the hour that we must become self-reliant. We have to move forward based on our own abilities, in our own way, and there is only one way to do it — Aatmanirbhar Bharat or Self-reliant India.

    The recent ₹20 lakh crore package given for Aatmanirbhar Bharat Abhiyan is a major step in this direction.

    This initiative will usher in a new era of opportunities for every Indian, be it our farmers, workers, small entrepreneurs or youth associated with start ups.

    The fragrance of Indian soil along with the sweat, hard work and talent of our workers will create products that will reduce India’s dependence on imports and will move towards self-reliance.

    Dear friends,

    In this journey of the last six years, you have continuously showered me with love and blessings.

    It is the strength of your blessings that has made the nation take historic decisions and progress rapidly in the last one year. However, I am also aware that there is a lot that needs to be done. There are many challenges and problems that our country faces. I am working day and night. There could be deficiencies in me but there is nothing that our country lacks. So, I believe in you, your strength and your abilities even more than I believe in myself.

    The source of strength for my resolve is you, your support, blessings and affection.

    Due to the global pandemic this is certainly a time of crisis but for us Indians this is also a time for a firm resolve.

    We must always remember that the present and future of 130 crore will never dictated by an adversity.

    We will decide our present and our future.

    We will move ahead on the path of progress and victory will be ours.

    It is said that- कृतम्मेदक्षिणेहस्ते, जयोमेसव्यआहितः

    This means, if we have action and duty on one hand, then success is assured in the other hand.

    With prayers for our country’s success, I bow to you once again.

    My heartiest wishes to you and your family.

    Stay healthy, stay safe!!!

    Stay aware, stay informed!!!

    Your Pradhan Sevak

    Narendra Modi

    With inputs from The Hindu

  • Telecom regulator moots national numbering plan

    Recommends 11-digit mobile numbers, among other things

    The Telecom Regulatory Authority of India on Friday recommended that a new National Numbering Plan be issued at the earliest so that a uniquely identifiable number can be provided to every subscriber in India.

    Some of the options that TRAI has recommended include switching to a 11-digit mobile number, reallocation of mobile numbering resources surrendered by operators who have shut shop and prefixing zero for all mobile calls made from fixed line.

    The regulator said adequate availability of numbering resources is threatened because of an increase in the range of services and massive growth in the number of connections, especially in the mobile segment. The ongoing plan implemented in 2003, was developed keeping in mind the projections till the year 2033. The total number of telephone subscribers in India stands at 1,177.02 million with a tele-density of 87.45% at the end of January 2020.

    “As a result, we find ourselves in a situation where we need to review the utilisation of the numbering resources and make some policy decisions to ensure that adequate resources are available for sustainable growth of the telecommunication services,” it said.

    TRAI said that some serious problems are anticipated with a change in the mobile number from 10 to 11 digits, and the move should be resorted to only if all the efforts to continue with the 10-digit numbering are exhausted.

    Migrating to 11 digits “would require widespread modifications in the configuration of switches involving cost. This would also cause inconvenience to the customers in the form of dialing extra digits and updating phone memory. This could lead to more dialing errors, infructuous traffic, and loss of revenue to the TSPs.” It added that telephone numbers are also associated with the digital identity of individuals, and, hence, changes will be required in the databases of all services requiring telephone numbers for identity like financial banking services, e-commerce, and government welfare schemes.

    The Department of Telecommunications administers the numbers for fixed and the mobile networks based on the ITU’s Telecommunication Standardization Sector (ITU-T) Recommendations. The management of numbering resources is governed by the National Numbering Plan.

    The Authority has also recommended that all the SIM-based M2M (machine to machine) connections using 10-digit mobile numbering series should be shifted to the 13-digit numbering series allocated by DoT at the earliest.

    Besides, the regulator has said that the government should enlist all newly allocated numbering resources for fixed line as well as mobile services every year.

    The Authority has also recommended automated allocation of numbering resources be done using number management system software to speed up the process of allocation in an efficient and transparent manner. If needed, this work may be outsourced with overall control and supervision of the DoT, it said.

    With inputs from The Hindu

  • GDP numbers a telling commentary of BJP’s economic management, says Congress

    Former Union minister Jairam Ramesh alleged that Prime Minister Narendra Modi was in denial mode.

    The Congress on Friday said the low GDP growth in the last quarter of 2019-20 was “a telling commentary” on the BJP-led government’s economic management and its misplaced priorities.

    In a series of tweets, former Finance minister P. Chidambaram said the GDP numbers did not fully capture the impact of the four stages of lockdown that started on March 25 .

    “We had forecast that GDP for Q4 will touch a new low at below 4 per cent. It has turned out to be worse at 3.1 per cent. Remember, this is pre-lockdown. Of the 91 days of Q4, lockdown applied only to 7 days. It is a telling commentary on the economic management of the BJP government,” Mr. Chidambaram tweeted.

    “3.1 pc and 4.2 pc – these are not merely numbers. This is the product of BJP Govt’s failures and misplaced priorities,” the Congress party said on its official Twitter handle.

    Former Union minister Jairam Ramesh alleged that Prime Minister Narendra Modi was in denial mode. “Let it sink in. Latest Q4 GDP growth is the lowest in 11 years since India was hit by the global financial crisis. Figure includes only 1 week of lockdown. Mr. Modi managed to run down Indian economy BEFORE lockdown. Expect more ‘naatakbaazi’ (drama) from its ‘ustad’ tomorrow,” he tweeted.

    “If the Modi government continues to be in denial about how badly it has managed the economy, India will truly be ‘parm-atma-nirbhar’ (dependent on God),” Mr. Ramesh added.

    Congress spokesperson Gaurav Vallabh said this was the lowest GDP growth rate in the last 44 quarters. He said manufacturing at minus 1.4% clearly indicated that demand had collapsed in the economy and was a cause for concern and a failure of the ‘Make in India’ program.

    “Who is to be held accountable for the continuous slide in the economy since the last 4 years,” Mr. Vallabh asked and added, “We demand an explanation to the nation about the failure of the much-marketed ‘Make In India’ program. Government should come ahead and accept the failure of demonetisation and faulty implementation of GST”.

    With inputs from The Hindu

  • GDP growth slows to a 11-year low of 4.2%

    In 2019-20, the Indian economy grew by 4.2% against 6.1% expansion in 2018-19.

    Economic growth slowed to an 11-year low of 4.2% in 2019-20, according to data released by the National Statistical Office on Friday.

    In the final quarter of the year, that is, January-March, the growth rate of Gross Domestic Product (GDP) fell to 3.1%, reflecting the impact of the first week of the COVID-19 lockdown which began on March 25.

    Although this is the lowest growth rate in the last 44 quarters, it is still higher than the 2.2% growth predicted by most economists and ratings analysts.

    “Agriculture and government expenditure have been the saviours,” said Devendra Pant, chief economist at the Fitch Group’s India Ratings.

    Agriculture and mining sectors picked up steam in the fourth quarter, growing at rates of 5.9% and 5.2% respectively, even while the manufacturing sector contracted further, recording a negative growth of 1.4%. Public administration, defence and other services grew at 10.1%.

    Although the budget estimate for GDP growth in 2019-2020 had been pegged at 8.5%, the NSO’s previous estimates had pushed the projection down to 5%. On Friday, the NSO also revised downward its estimates for the first three quarters of the year, and pegged its provisional growth estimate for the whole year at 4.2%. The Indian economy grew at 6.1% in 2018-19.

    “The most disturbing news is that the three components of demand have fallen — consumption demand has slowed, while investments and exports are both in negative territory,” said D.K. Srivastava, chief policy advisor for Ernst and Young who is also a member of the Advisory Council to the 15th Finance Commission. He also expressed concern about the Controller General of Accounts data showing that the Centre’s gross tax revenues fell an unprecedented 3.4% in 2019-20, while fiscal deficit increased to 4.6% of GDP, well above the revised estimate of 3.8%.

    “Please note that this has all happened in the year prior to COVID. In the five years before the 2008 crisis, we had maintained an 8% GDP grwoth, so the capacity to endure and recover was stronger. Now we are faced with a weaker economy and much weaker public finances and fiscal capacity,” said Dr. Srivastava.

    “Going forward, with private expenditure growth dwindling due to shut down and labour migration; investment demand contracting due to weak consumption demand and stretched corporate balance sheet; government expenditure will again be the growth engine in 2020-21,” said Dr. Pant. Although weak commodity prices and import demand will also provide some support to growth, the economy will contract this year for the first time since 1980, he said.

    With inputs from The Hindu