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.
MoSPI proposes to remove closed factories from IIP sample, aiming for truer picture of India’s industrial health in upcoming 2022–23 base series. Plan open to public feedback until 25 November.
Bihar is blessed with a land more fertile for revolutions than any in India. Why has it fallen so far behind then? Constant obsession with politics is at the root of its destruction.
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.