Snapshot 2022: Farmers’ income, inflation risks

0

View full picture

mint

In 2016, the Center set a goal of doubling the real incomes of farmers by 2022. Experts found this impractical to begin with: the baseline figure that needed to be doubled was not even clear for a while. time. But the government still swears by the goal every now and then. So here’s the test: 2022 is here.

The average farm household earned ??10,218 per month in 2018-19, with a strong disparity. The pandemic hasn’t hurt agriculture much, but growth was only 3.6% in 2020-21, which could derail progress. The year-long confrontation with farmers unhappy with controversial reforms will push the Center to rethink its strategy. This is also the year of India’s 175 gigawatt capacity target for renewable energy. The country installed a capacity of 8.2 GW between April and November, bringing the total installed capacity to 104 GW. The last stage will be closely watched. Earlier this year, the International Energy Agency had planned significant additions in 2022, but not enough to meet the target.

IPO bubble

mint

View full picture

mint

IPOs hit a series of records in 2021, with newly listed companies paying off ??Trillion to date to effortlessly surpass the previous record of 2017. Driven by strong retailer participation and significant listing gains, the primary market was abuzz with a flurry of offers.

Even at the end of the year, when IPOs typically slow, companies rush to tap the market, making it the busiest December ever.

Momentum is expected to continue in 2022, with IPOs worth ??45,128 crore in the pipeline, and 35 more worth more ??61,000 crore pending regulator approval. But market watchers are cautious as to whether the frenzy will win out. New variants of covid-19 present too much uncertainty and major central banks are becoming hawkish to curb inflation. The cash glut is about to abate, threatening a reality check for ambitious newbies in the listed space.

Endemic to Covid?

mint

View full picture

mint

At the start of 2021, the world was still convinced that vaccines would end the covid-19 pandemic. But as we close the year, we know the assumption was reckless. New, unpredictable variations may still be too smart for vaccines, and the glaring inequalities in immunization will keep us on our toes for years to come. In 2022, covid-19 could even become endemic.

Omicron is already imposing lockout-like restrictions in some countries and wiping out yet another holiday season. There is some evidence that it is more transmissible than Delta but less severe – ideal conditions for covid-19 to become endemic. If the vaccination progresses fairly, the virus may disappear in the background. If they don’t, many more could still lose their lives. India will do well to use the lull to strengthen its health infrastructure.

Inflation pressures

mint

View full picture

mint

While 2020 was the year of economic devastation and record interest rates, much of 2021 was devoted to rising inflationary pressures on all fronts: food, energy, and supply-side constraints. While most central banks may have ignored high inflation rates as “transients,” it is now clear that the rise in retail prices was anything but that. Soaring inflation has already forced many countries, like Brazil, Russia and Mexico, to hike rates, with the UK also joining the list earlier this month. The US Fed is still in the process of normalizing its policy before raising rates next year. The story is the same for India. Retail price inflation has reached decades-long highs in several countries and supply chain disruptions could also continue into the next year. With the International Monetary Fund warning that inflation could get “sticky” in parts of the world, 2022 could become the year of rate hikes, especially when the US Fed steps in.

FIFA 2022

mint

View full picture

mint

The 22nd FIFA World Cup kicks off in Qatar on November 21. This is the first time that the big football event will be organized in a Gulf country. FIFA’s financial budget for the tournament includes a total prize pool of $ 440 million for all 32 teams, up 10% from 2018.

For football fans, this World Cup will be different. The tournament will be the first to be held at this time of year to escape the harsh summer of Qatar. The event has also been the subject of close scrutiny by human rights observers for several years. During the event, tourists should be aware that public drunkenness and public displays of affection are strictly prohibited in Qatar, and female sports fans and sexual minorities will be concerned for their safety. Qatar has come under heavy criticism for violations of rights and unsafe working conditions in preparation for the tournament. A sports gala will not be enough to offset the human toll, many believe.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Share.

Comments are closed.