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Saturday, May 4, 2024
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Ilanomics

India’s GDP & fiscal situation seem back on track. Reforms must continue to build confidence

The 20.1% growth in Q1 FY22 was largely driven by the base effect. Structural reforms including disinvestment and bank privatisation needed to ensure a sustained growth path.

Retrospective tax is good riddance. But Modi govt can do more to attract foreign investors

India needs to offer stability in its regulatory regime and rule of law in order to compete with countries like Vietnam that are vying for space vacated by China.  

India’s uncertain growth trajectory makes it tough for RBI to tinker with interest rates

There are some early signs of moderation in inflation and a pick-up in growth, but RBI is likely to monitor growth and inflation before a decision on changing rates.

India needs more private insurance companies. Govt must use Covid trigger to make this happen

More players could make the market more competitive as they would vie to offer accessible and low-cost insurance products.

India is walking on one leg because 1991 reforms missed banking & finance

Restrictions on banking led to limited capacity for new entrepreneurs to have access to resources. It allowed the old elite to continue dominating. This order must be shaken up now.

India needed a crisis to reform. It got one in 1991, thanks to Nehru & Indira’s Soviet model

India’s turn to a centrally planned economy began in the 1950s under PM Jawaharlal Nehru. But by 1991, the economy came to a grinding halt and faced a massive crisis.

Why Covid crisis must push credit rating firms to overhaul their methods and address bias

With agencies sticking to their methodology in these times, an emerging economy rating and outlook appear to be worse regardless of whether its government is fiscally prudent or not.

Why Modi govt has walked a tightrope with new Covid relief package

The structure of Finance Minister Nirmala Sitharaman’s latest stimulus package indicates that the government had an eye on the fiscal deficit while making it.

Why RBI’s hoarding of forex reserves over currency concerns will be counter-productive

RBI’s dollar reserves now stand at $608 billion, making India the fifth-largest reserve holding country in the world.

Inflation will moderate — 5 reasons why you should not worry too much about high prices

The May inflation figure may be somewhat inaccurate, with the rise appearing to be mainly due to higher global crude oil prices, commodity prices, and supply-side disruptions.

On Camera

Prajwal Revanna case shows why and how sexual crimes by men in politics can go unchecked for years

It would be a disservice to the women of Hassan to look at Prajwal Revanna’s alleged abuse of power as a ‘sex scandal’. Allegations against him show what ‘absolute power corrupts absolutely’ actually means.

High capacity usage, fresh borrowings & new orders — why FY25 could be a big year for pvt investment

Companies are borrowing more from banks and public. Economists say high capacity utilisation & growing new orders could set stage for renewed investment push by India Inc.

China builds road through Shaksgam Valley, India registers protest

New Delhi has, in past, too, objected to Chinese construction activities in Shaksgam Valley. Work in this strategic region gathered pace after the 2017 Doklam stand-off.

Frontrunner is letting the challenger define this poll campaign. Modi still hasn’t found a big theme

A theme has not yet emerged for BJP & people see lack of a contest, which makes it unexciting. For all these reasons, 2024 is turning out to be an unexpectedly theme-less election.