Hindi English Translation || Editorial || Lift spending: On core sector output data

Lift spending: On core sector output data

The Centre must crank up capital spending (the money spent on the acquisition of assets like land, buildings, machinery, equipment, as well as investment in shares) if it wants to stoke (भड़काना, उकसाना, प्रोत्साहित करना) the economy

Official industrial data from February shows output in the eight core sectors (the eight industries comprising electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers are classified as core sector industries) grew at the fastest pace (गति, चाल, रफ्तार) in four months at 5.8%, aided (सहायता करना, सहारा देना) liberally (उदारतापूर्वक, मोटे तौर पर, आम तौर पर) by a low base effect (आधार प्रभाव) — production had contracted (decline, decrease, diminish, reduce. 3.3% a year earlier. However, when compared with January 2022, output in all of these sectors actually declined, with the overall index (सूचकांक, तालिका) contracting 5.3%. Electricity generation, a good indicator of business activity and which contributes about 20% to the weight (वजन, मूल्य, महत्व) of the index, declined 3.3% from the preceding (पिछला, पूर्व) month. Steel, another index heavyweight (वज़नदार) that feeds into (contribute to) various sectors of the economy from housing to cars to white goods (large electrical goods for the house such as refrigerators and washing machines, etc. (typically white in colour)) and small-scale engineering and parts units, dipped (गिरना, कम करना, डुबोना) 5.2% from January 2022. Making up (constitute, account for, comprise) the largest component (घटक, अवयव) of the index, at about 28%, is the refinery (a factory for refining something, as metal, sugar, or petroleum) products category. For a sector that facilitates (आसान करना, संभव बनाना, सक्षम बनाना) other industries by powering mobility (गतिशीलता, परिवहन योग्यता), output slid 8% sequentially (क्रमिक रूप से, लगातार). The Omicron wave, early in the calendar year (a period of twelve months starting from January 1 and ending with December 31), coupled with (के साथ जोड़े, सम्मिलित करना) rising prices likely dampened (decrease, diminish/lessen, reduce) demand, signalling uneven economic recovery from the onslaught ((destructive attack, offensive, aggression) of the COVID-19 pandemic (the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area). The road to a full recovery looks long and bumpy (fluctuating, changeable, irregular, tumultuous, turbulent, inconsistent), as the latest production levels are still below, or barely above, those seen pre-pandemic. Inflation (simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value), which has already breached (fail to comply with, break, contravene, violate) the Reserve Bank of India’s upper tolerance (deviation, fluctuation, variation) limit of 6% two months running, is a threat to consumer demand (the willingness and ability of consumers to purchase a quantity of products in a given period of time, or at a given point in time). If demand remains muted, or worse, slips (decrease, drop, decline, slump, tumble, plunge, plummet) further, the domino effect upstream (the industry which finds and produces crude oil and natural gas) will only impact the core sectors further. The RBI’s Monetary Policy Committee has its work cut out in a meeting later this week, when the panel will decide on benchmark (standard, base/basis, ideal) interest rates that could potentially (likely, possibly, probably) influence (affect, have an effect on, prompt, induce) inflation.

At the same time, government spending, which could set the pace (lead the way in doing something) for overall growth in a stuttering (relating to something which progress/develops in an irregular way) economy, has not roared (move (forward)) forward. Capital expenditure grew a mere 0.8% in February from a year earlier. Even though capex had risen about 20% in the April-February 11-month period, the Centre still had about ₹1.2 lakh crore left to be spent in March, and it appears unlikely (doubtful, implausible, improbable, questionable) that the Government would have met its revised capex target of ₹6 lakh crore for FY22. Though tax revenues have been robust (strong, vigorous, powerful), the Government likely (probably, in all probability, presumably, doubtlessly) held back on capital expenditure to help offset (even up, counterbalance, equalize, neutralize; make amends for, compensate for) the lack (shortfall, deficiency, shortage, deficit) of divestment (dispossession, withdrawal, removal, taking away, stripping) proceeds (profits, earnings, receipts, returns, income, revenue, gain, yield) it had budgeted (allocate, allot, provide) for. Given (considering, taking into account, bearing in mind) geopolitical tensions, the stock market (equity market, share market, a stock exchange. It is where traders buy and sell shares of companies on a public exchange) has been too volatile for the Government to go ahead (to proceed, to continue to do something, to start/begin to do something) with the initial public offer (the sale of equity shares or other financial instruments such as bonds to the public in order to raise capital) for LIC. The sale of stake in BPCL has also not proceeded apace (quickly, fast, swiftly, rapidly). Despite these roadblocks (barrier, hindrance, obstruction), the Government may have little choice but to crank up capital spending early in the new fiscal (financial (year)) if it wants to stoke the economy. The multiplier effect (the proportional amount of increase in final income (particularly of the government) that results from an injection of spending; it occurs when an initial injection (investment/spending) into the economy causes a bigger final increase in national income. This theory was first proposed by the British economist John Maynard Keynes (1883–1946), who is regarded as the founder of modern macroeconomics) would not only benefit industries such as cement and steel, but may also help crowd in private investment, spurring (stimulate, encourage, prompt, galvanize) job creation, which has been the economy’s Achilles heel (weak spot/point, weakness, defect/fault/flaw) for a while now.

Courtesy: The Hindu

Important Word List With Meaning

1.stoke (verb)

Hindi Meaning - भड़काना, उकसाना, प्रोत्साहित करना
English Meaning - incite, encourage (a tendency).

2.pace (noun)

Hindi Meaning - गति, चाल, रफ्तार
English Meaning - speed, rate.

3.aid (verb)

Hindi Meaning - सहायता करना, सहारा देना
English Meaning - help, assist, support.

4.liberally (adverb)

Hindi Meaning - उदारतापूर्वक, मोटे तौर पर, आम तौर पर
English Meaning - broadly, generally.

5.base effect (noun)

Hindi Meaning - आधार प्रभाव
English Meaning - it relates to inflation in the corresponding period of the previous year, if the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the Price Index will arithmetically give a high rate of inflation now.

6.index (noun)

Hindi Meaning - सूचकांक, तालिका
English Meaning - an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator.

7.weight (noun)

Hindi Meaning - वजन, मूल्य, महत्व
English Meaning - value, importance, significance.

8.preceding (adjective)

Hindi Meaning - पिछला, पूर्व
English Meaning - previous, prior, earlier.

9.heavyweight (noun)

Hindi Meaning - वज़नदार
English Meaning - something that is very important/influential.

10.dip (verb)

Hindi Meaning - गिरना, कम करना, डुबोना
English Meaning - decrease, fall/drop, slump.

11.component (noun)

Hindi Meaning - घटक, अवयव
English Meaning - constituent, element, ingredient.

12.facilitate (verb)

Hindi Meaning - आसान करना, संभव बनाना, सक्षम बनाना
English Meaning - make easy, make possible, enable, assist, help/aid.

13.mobility (noun)

Hindi Meaning - गतिशीलता, परिवहन योग्यता
English Meaning - transportability.

14.sequentially (adverb)

Hindi Meaning - क्रमिक रूप से, लगातार
English Meaning - in succession, successively, continuously.

15.couple with (verb)

Hindi Meaning - के साथ जोड़े, सम्मिलित करना
English Meaning - combine, integrate, connect, incorporate, link.

16.contract (verb)

English Meaning - decline, decrease, diminish, reduce.

17.lift (verb)

English Meaning - increase, raise, boost, enhance.

18.core sector/industries (noun)

English Meaning - the eight industries comprising electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers are classified as core sector industries.

19.crank up (phrasal verb)

English Meaning - increase, make larger, enlarge/expand, raise.

20.capital spending/capital expenditure (CAPEX) (noun)

English Meaning - the money spent on the acquisition of assets like land, buildings, machinery, equipment, as well as investment in shares.

21.indicator (noun)

English Meaning - measure, sign, signal, barometer.

22.feed into (verb)

English Meaning - contribute to.

23.white goods (noun)

English Meaning - large electrical goods for the house such as refrigerators and washing machines, etc. (typically white in colour).

24.make up (phrasal verb)

English Meaning - constitute, account for, comprise.

25.refinery (noun)

English Meaning - a factory for refining something, as metal, sugar, or petroleum.

26.slid past participle of slide (verb)

English Meaning - decline, sink, fall, drop.

27.Omicron variant (noun)

English Meaning - On 26 November 2021, WHO designated the (new coronavirus) variant B.1.1.529 a variant of concern, named Omicron, on the advice of WHO’s Technical Advisory Group on Virus Evolution (TAG-VE). The first known confirmed Omicron infection was from a specimen collected on November 9. In recent weeks, infections in South Africa have increased steeply, coinciding with the detection.

28.calendar year (noun)

English Meaning - a period of twelve months starting from January 1 and ending with December 31.

29.dampen (verb)

English Meaning - decrease, diminish/lessen, reduce.

30.onslaught (noun)

English Meaning - (destructive attack, offensive, aggression.

31.pandemic (noun)

English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

32.road (noun)

English Meaning - way, path, route, direction, course.

33.bumpy (adjective)

English Meaning - fluctuating, changeable, irregular, tumultuous, turbulent, inconsistent.

34.inflation (noun)

English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

35.breach (verb)

English Meaning - fail to comply with, break, contravene, violate.

36.tolerance (noun)

English Meaning - deviation, fluctuation, variation.

37.consumer demand (noun)

English Meaning - the willingness and ability of consumers to purchase a quantity of products in a given period of time, or at a given point in time.

38.mute (verb)

English Meaning - lower, reduce, diminish, decrease; restrain, subdue, silence, tone down.

39.slip (verb)

English Meaning - decrease, drop, decline, slump, tumble, plunge, plummet.

40.ripple effect/domino effect/knock-on effect (noun)

English Meaning - an event (or a process/action) that causes several other events to happen indirectly one after the other; secondary/indirect effect, consequence/implication, chain of events.

41.upstream (petroleum industry) (noun)

English Meaning - the industry which finds and produces crude oil and natural gas.

42.The monetary policy committee (MPC) (noun)

English Meaning - it is a six-member panel that is expected to bring “value and transparency” to rate-setting decisions. It will feature three members from the RBI — the Governor, a Deputy Governor and another official — and three independent members to be selected by the Government. The MPC will meet four times a year to decide on monetary policy by a majority vote.

43.have one’s work cut out (phrase)

English Meaning - be faced with a tough task/work.

44.benchmark (noun as modifier)

English Meaning - standard, base/basis, ideal.

45.potentially (adverb)

English Meaning - likely, possibly, probably.

46.influence (verb)

English Meaning - affect, have an effect on, prompt, induce.

47.government spending or public spending (noun)

English Meaning - money spent by the government. 

48.set the pace (phrase) -

English Meaning - lead the way in doing something.

49.stuttering (adjective)

English Meaning - relating to something which progress/develops in an irregular way.

50.roar (forward) (verb)

English Meaning - move (forward).

51.unlikely (adjective)

English Meaning - doubtful, implausible, improbable, questionable.

52.robust (adjective)

English Meaning - strong, vigorous, powerful.

53.likely (adverb)

English Meaning - probably, in all probability, presumably, doubtlessly.

54.hold back (phrasal verb)

English Meaning - stop, discontinue, withhold; restrict, restrain, block.

55.offset (verb)

English Meaning - even up, counterbalance, equalize, neutralize; make amends for, compensate for.

56.lack (noun)

English Meaning - shortfall, deficiency, shortage, deficit.

57.divestment (noun)

English Meaning - dispossession, withdrawal, removal, taking away, stripping.

58.proceeds (noun)

English Meaning - profits, earnings, receipts, returns, income, revenue, gain, yield.

59.budget (verb)

English Meaning - allocate, allot, provide.

60.given (preposition)

English Meaning - considering, taking into account, bearing in mind.

61.geopolitical (adjective)

English Meaning - relating to (the study of) the geographical factors (a country’s position on the earth, size, climate, and natural resources &, etc.) in world politics and inter-state relations.

62.tensions (noun)

English Meaning - strained relations, strain, unease.

63.stock market (noun)

English Meaning - equity market, share market, a stock exchange. It is where traders buy and sell shares of companies on a public exchange.

64.volatile (adjective)

English Meaning - unpredictable, turbulent, uncertain, inconstant.

65.go ahead (phrasal verb)

English Meaning - to proceed, to continue to do something, to start/begin to do something.

66.public offer (noun)

English Meaning - the sale of equity shares or other financial instruments such as bonds to the public in order to raise capital.

67.stake (noun)

English Meaning - share.

68.Bharat Petroleum Corporation Limited (BPCL) (noun)

English Meaning - an Indian public sector oil and gas company headquartered in Mumbai, Maharashtra. The Corporation operates two large refineries of the country located in Kochi and Mumbai.

69.apace (adverb)

English Meaning - quickly, fast, swiftly, rapidly.

70.roadblock (noun)

English Meaning - barrier, hindrance, obstruction.

71.fiscal (noun)

English Meaning - financial (year). 

72.(Keynesian) multiplier effect (noun)

English Meaning - the proportional amount of increase in final income (particularly of the government) that results from an injection of spending; it occurs when an initial injection (investment/spending) into the economy causes a bigger final increase in national income. This theory was first proposed by the British economist John Maynard Keynes (1883–1946), who is regarded as the founder of modern macroeconomics.

73.crowd in (verb)

English Meaning - surge, push, thrust forward, nudge.

74.crowding-in (noun)

English Meaning - it occurs when higher government spending leads to an increase in private sector investment.

75.spur (verb)

English Meaning - stimulate, encourage, prompt, galvanize.

76.Achilles heel (noun)

English Meaning - weak spot/point, weakness, defect/fault/flaw.