Continuum Economics' Chanana on India's Economy

The video discusses India's economic challenges and strategies, focusing on the impact of the global minimum tax, inflation concerns, the recovery of the informal economy post-COVID, and the country's fiscal position. It highlights India's compromise on digital service tax, inflation threats due to oil prices, and the informal economy's slow recovery. The video also covers improved tax collections and fiscal health, driven by increased economic activity and festive demand.

What is one of the major compromises India is making with the global minimum tax?

• Doing away with the digital service tax

• Reducing export subsidies

• Increasing import tariffs

• Implementing stricter environmental regulations

Why is inflation considered a significant threat to the Indian economy?

• Because of temporary base effects and supply chain issues

• Due to a permanent decrease in oil prices

• Owing to a stable currency exchange rate

• As a result of increased agricultural output

What makes measuring the recovery of India's informal economy challenging?

• Consistent government policies

• Lack of formal data and metrics

• High literacy rates

• Stable employment rates

What is one of the medium-term impacts of the pandemic on India's informal economy?

• Decreasing poverty levels

• Rising wage growth

• Stable employment rates

• Increasing poverty levels

What has contributed to the improved tax collections in India?

• Reduction in tax rates

• Decreased economic activity

• Increased economic activity post-pandemic

• Decline in consumer spending

What is a potential risk to India's fiscal stability mentioned in the transcript?

• Decreasing oil prices

• Rising oil prices

• Stable commodity prices

• Increasing agricultural output

What is the outlook for India's fiscal deficit targets for FY22?

• No change

• A negative surprise

• A positive surprise

• A significant increase