TMS Ep82: Indian economy, Fairwork ratings, markets, Contingency Fund

With the worst most likely behind it, the bruised Indian economy looked poised to regain some of its vitality. While some sectors were still nursing the pandemic wounds, others were able to scrape through. On Friday, the government projected growth in real GDP during 2021-22 at 9.2%, compared to a contraction of 7.3% in 2020-21. 

Gig economy made itself known during the pandemic. And it also brought the spotlight on the working conditions of those who work on contract. Last month, the European Union brought a proposal to give all the rights being enjoyed by permanent workers to these gig workers. Back in India, the recent Fairwork ratings highlighted how well or poorly these workers of unorganised sectors were being treated by companies. 

After the gig economy, let us see what is happening on Dalal Street. Equity markets are beginning to turn volatile as profit-making at higher levels is capping the upsides. Last week, the Sensex and Nifty added over 1% each, supported by healthy buying in banking counters. Our next report delves into the market trajectory for this week, key events that will guide the sentiment, and trading strategies for investors.

For markets and investors, contingency is a potentially negative event which may occur in future, like recession or pandemic. And they prepare for it in advance, just like most of us. We maintain an emergency fund to deal with a job loss or any medical emergency. The governments also do it. Our Constitution has a provision for a contingency fund. The corpus of this fund is always kept intact. Let's look at how it works and more in these episode of the podcast.

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