Page 35 - Diamond Digest :: Jan.-Feb. 2021 Issue

Global News & Views.....
Budget 2021 is fiscally stimulating
The Union budget for fiscal 2021-22 (FY22) was to deliver a lot, as expectations had built up to a crescendo after the government signalled that something big should be expected. As it is, an official update on what has transpired in FY21 and what is to be expected in FY22, the announcements and revelations are important. On the expenditure side, the Budget surely does fulfil meeting expectation. Let us first look at the FY21 update. The fiscal deficit has been placed at 9.5 per cent, which is much highe r than wha t was expected due to higher expenditures as the increase was around Rs 4.1 trillion from Rs 30.4 to Rs 34.5 trillion. Hence, there has been a combination of revenue slippage as well as higher expenditure, leading to an increase of deficit by 6 per cent of gross domestic product (GDP).
As to the Budget for FY22, four questions were of importance. The first was the fiscal deficit number, which is probably the starting point of the Budget. At 6.8 per cent, it does indicate that fiscal consolidation has not been high on priority this time and has gone in for a stimulus this year. It will take another four years for bringing the deficit to come down to less than 4.5 per cent. This also means the overall borrowing programme for the year, which though lower than that for FY21, would still be quite high at Rs 12 trillion and something that the market will be
watching. One can expect commercial credit growth to pick up which in turn will put pressure on liquidity. The Reserve Bank of India (RBI) will take note of this in its upcoming policy as well as April announcement. There will prima facie be pressure on interest rates going forward. More so, as states can have a deficit of 4 per cent in the coming year, which means there will be more borrowing in the market from this end, too. Third is on expenditure, and here it does appear that the Budget has been aggressive, especially when we look at the composition. The capex for the year has been placed at Rs 5.54 trillion, which while being an increase of 26 per cent over the revised estimate for FY21, is a good start. However, admittedly there will be a lot to be done by the private sector for investment rate to really pick up during the year. This amount is around 2.5 per cent of GDP, which can prod but not drive overall investment in the economy. The setting up of a new DFI is an affirmative step taken and hopefully should materialize in the year will provide the right impetus for infrastructure. On the whole, the Budget has delivered a fairly effective boost on capex while bringing about some reforms in the financial sector: bad bank, DFI and bank capitalisation. The pressure on liquidity will be there given the higher deficit and borrowings which is reckoned. This can mean that interest rates will have to be monitored by the RBI closely. (Madan Sabnavis,Chief economist)
GIA Offers Singular Postdoctoral Research Opportunity
Early-career scientists in geology, minerology geochemistry and related fields have a unique opportunity to advance their research and our understanding of the Earth with a fellowship at the world’s premier gemological research organization – GIA, the Gemological Institute of America. The Institute’s Richard T. Liddicoat Postdoctoral Research Fellowships provide an exceptional opportunity for specialized research through unparalleled access to nearly 90 years of in-depth research and the vast array of diamonds, colored gems and pearls that flow through GIA’s laboratories.
Qualified candidates are urged to apply for the fellowships at GIA’s Carlsbad, California and New York City locations. Applications are due by July 31, 2021. For more information and to apply, visit GIA.edu/research-careers.
“GIA’s research deepens the world’s understanding of gemstones, building knowledge about Earth’s formation and development, and also contributes to GIA’s deeply held mission to protect all who cherish and value gems and their mineral origins,” said Tom Moses, GIA executive vice president and chief laboratory and research officer. “Researchers focused on scientific problems related to mineralogy, crystallography, geochemistry and gemology of diamonds, colored gem stones and pearls, and those with interest in developing related technologies and
instrumentation will have unrivalled access to gemstones that come through GIA’s laboratory.” Research fellows will be exposed to rough and polished natural, laboratory-grown and treated gemstones, including samples acquired by GIA’s unique field gemology program from gem locales around the world. In-house research tools include FTIR; UV-Vis- NIR absorption; Raman, photoluminescence and EPR spectrometers; an SEM microscope equipped with EDS and CL spectroscopy and imaging; laser ablation ICP-MS; and a CVD diamond growth lab with laser cutting and polishing facilities. GIA also facilitates access to outside research facilities. The start date of each fellowship is flexible as long as applicants received their Ph.D. in a relevant field by the start date, and preferably within the last three years.
The fellowship includes a competitive annual stipend, research funding and travel subsidies for approved offsite research work. Benefits include full health, dental and vision insurance, and the potential reimbursement of relocation expenses. Appointments are for one year and may be extended for a second year based on mutual agreement.
The Richard T. Liddicoat Postdoctoral Research Associate Fellowship program was created in 2014 to honor GIA’s former president, who was widely considered the “Father of Modern Gemology.”
35 • Diamond Digest • Jan - Feb - 2021
35 • Diamond Digest • Jan. - Feb. - 2021