Institutional changes that don’t require large expenses and show govt’s commitment to reform can be strong positive signals in Nirmala Sitharaman’s Budget.
Economists are arguing for expansionary Budget, so govt won’t be criticised much for not being prudent. Target should be to boost growth by pushing demand.
Year-on-year method misses trends in prices, so month-to-month seasonal adjustment should be used. According to this, May-December avg inflation was 4.05%.
Economic recovery from pandemic has been faster than expected, but with Budget set to be presented next month, these factors need to be taken into account.
India’s GDP is projected to contract in FY21. But as restrictions ease, supply side disruptions are addressed and demand picks up, the economy is expected to rebound.
Subsidised credit from the government and the RBI has not proved to be a sustainable source in the past. Moreover, the bond market in India is still awaiting reforms.
When changes are introduced through consultation & engagement, people can get used to new ideas without friction. Bad ones can be dumped; good ones made better.
Recent bank failures show that concerns about RBI’s supervisory capacity are relevant. A common feature was RBI allowing problem of bad loans to linger.
One of the comments on her recent picture, read: “She is not able to do the role of a pregnant woman properly”. It's a nasty cocktail of misogyny and an ignorance of basic human biology.
According to a statement by the airport, commercial operations likely to begin next year 'in view of the current construction status'. It was supposed to commence operations by 2024 end.
Recent high-profile visit was of US National Security Adviser this month during which a number of key issues, including military cooperation, was discussed by both sides.
Changed reality for Modi govt in its 3rd innings is by no means rise of a new phenomenon. It's a return to old normal where even majorities had to routinely wrestle with storied million mutinies.
In a predominantly $2 per day income for majority of the population, you cannot increase demand that amounts to something. Modi wants the unemployed to sell pakora and sell it. Make it and sell it goes the lecture from the PM. The priority is therefore increase in income for 70-85%% or more of the Indian population. Selling Maruti or Honda Accord is not going to get India anywhere Economically. Like Ford said, he wanted his employees to make enough to buy the car they made in America. In India, alas it seems, it is making and buying Pakora only. Demand for it is there in plenty for sure. Dormant demand is useless. Real demand needs real income/money. And that requires nothing but job, job and only job.
In a predominantly $2 per day income for majority of the population, you cannot increase demand that amounts to something. Modi wants the unemployed to sell pakora and sell it. Make it and sell it goes the lecture from the PM. The priority is therefore increase in income for 70-85%% or more of the Indian population. Selling Maruti or Honda Accord is not going to get India anywhere Economically. Like Ford said, he wanted his employees to make enough to buy the car they made in America. In India, alas it seems, it is making and buying Pakora only. Demand for it is there in plenty for sure. Dormant demand is useless. Real demand needs real income/money. And that requires nothing but job, job and only job.