A 10 basis points cut would hardly have any impact on the Indian market. Instead, RBI needs to consider bigger cuts to impact interest rates.
Modi govt has spent Rs 19.3 lakh crore in 5 years on infrastructure. To meet the manifesto promise, it would need to spend over 5 times that amount per year.
Investment is an important driver of growth in India, but the number of private projects announced and under implementation has been declining steadily since 2011-12.
In an economy where biggest problem is employment, poverty reduction by income transfers is just a palliative. It needs to come with growth & jobs.
There is finally evidence of formalisation of the economy as the GST regime stabilises & has a big positive effect on the business cycle.
Both Modi government and private surveys can be correct about India’s jobs status — because they measure different things, and employ different ways.
Much-needed reforms in bond market and banks were sidestepped, reducing the positives of measures like bankruptcy code and inflation targeting.
Exempted firms not overseen by EPFO have adopted govt guidelines that pertain to investments but there is no one to monitor if these are followed
Instead of RBI holding capital, an MoU could be signed that would require the govt to pay the central bank in case of any risk.
RBI’s last year circular making bankruptcy proceedings a must brought focus on the need for checks and balances when unelected officials write a law.