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Ilanomics

RCEP would’ve led to flood of imports into India. Reform is a better way to boost exports

India hasn’t signed the RCEP, leading to concerns that it will get isolated. But it’s a China-centric deal that would have few advantages for India’s exports.

Production-Linked Incentives for 10 sectors show Modi govt’s intent, but need to be temporary

PLI scheme focuses on incentivising firms to grow fast, boosting India’s manufacturing & export prospects. But in the long run, sectors need to die and be born.

Urban MGNREGA is a short-sighted idea, Modi govt has shown good sense to drop it

Scope for manual earth work like digging of canals is limited in cities. An urban MGNREGA might not provide employment and create assets as it’s expected to.

Why Modi govt’s interest-on-interest ‘Diwali gift’ is good for India’s credit culture

Waiver of interest-on-interest for all during the moratorium can minimise moral hazard. Keeping it selective would've run the risk of hurting credit culture.

Why IMF evaluators want India-style capital controls to be adopted around the world

While capital controls may be useful in maintaining financial stability, Indian experience suggests IMF should focus on yardsticks of transparency, rule of law.

Banks need relief too, helping only borrowers will hamper next round of credit growth

As the moratorium on loan repayments ends, the government will have to answer the key question about how to treat defaulting borrowers.

RBI’s new MPC should focus on transmission. Without that, more rate cuts can be pointless

RBI must work towards better transmission mechanism, for which India needs deep & liquid bond market, competitive banking sector & regulatory framework.

Inflation targeting has worked for India, it is one of Modi govt’s defining achievements

Under 2016 RBI Act, govt needs to review the inflation target next year but not its framework. Yet, there’s a growing clamour to scrap the system.

End the domination of public sector banks, not simply recapitalise them. That’s true reform

Let zombie firms linger on & banks stay crippled a little longer if it leads to deeper reform, so India can get away from broken financial system of the 1980s.

Onion export ban is not the answer — it hurts farmers & India’s image as a reliable exporter

Onion prices have already risen due to heavy rain and crop damage, and could hurt consumers reeling due to income loss in the Covid-induced lockdown.

On Camera

America, your Natural History museum has a problem. ‘Hall of Asian Peoples’ is a hall of shame

Every day, the New York City’s American Museum of Natural History, a popular school trip destination, exposes children to racist depictions that enable hate crimes against Asian Americans.

Unproductive speculation, rising household debt — SEBI, RBI’s concerns about India’s F&O market

RBI said India’s rising retail participation in the F&O market may pose several challenges, and the stock of household debt is 'comparatively high' in relation to GDP per capita.

Base price of Rafale agreed upon, fighters for Navy to have India-specific enhancements

Navy team has already visited Ambala air station where IAF has kept one squadron of Rafales to understand commonalities of maintenance that can be pursued.

Modi’s new universe: the normal irritants of democracy & awkward chai with Rahul Gandhi

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.