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Friday, December 19, 2025
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MacroSutra

Highly vulnerable to extreme climate, crucial sectors in India need well-crafted green strategies

Various estimates peg loss to Indian GDP due to climate change between 3-10%. Decrease in water supply could disrupt agricultural production, leading to food inflation & social unrest.

GST regime needs transformation. Rate rationalisation, simplification must be council’s key priority

Layers of complexity due to multiple tax rates result in similar products being taxed differently. There should be a phased move towards a low single rate to reduce incentive for evasion.

Shrinking gap between average rural & urban consumption spends good news, but inequality persists

Consumption inequality between top & bottom 5% of population is more pronounced in urban India, latest Household Consumer Expenditure Survey says. Widest gap in rural Rajasthan & urban Haryana.

Indian economy showing solid growth, but these must be new govt’s top 5 priorities to sustain momentum

The outcome of the general elections has taken a surprising turn, differing from both exit poll predictions and market expectations. However, the agenda for...

India’s trade deficit improved in 2023-24, but it needs to watch its FTAs to fix persistent imbalances

Despite contraction in exports, India’s merchandise trade deficit improved in 2023-24, owing to steeper drop in imports. However, the trade deficit with China & Russia widened.

Indian banking sector’s boom continues, but low deposit rates for some banks point to future risks

To avoid high credit-deposit ratios, banks need to maintain healthy deposit base — a difficult task considering the competition they face from MFs & physical assets like gold, real estate.

Don’t jump at 1st unemployment number you see. Different databases yield varying but valid results

Govt & pvt sector CMIE surveys, the 2 keenly watched sources of employment data in India, differ in terms of their definitions of households, reference period & sampling methodologies.

Surge in lending not alarming yet, but India needs to start watching out for excessive credit growth

Unhindered growth in lending has been associated with financial crisis, but monitoring a simple metric like credit-to-GDP gap could help identify early indications of an impending crisis.

How poll-bound states are grappling with price rise, a factor likely to impact voter sentiment

Of 10 major states going into polls in 3rd phase, Bihar, Gujarat, Karnataka & UP saw inflation higher than India average. Policy priority for new govt in these states would be to ease this.

Central banks on buying spree, strong retail demand — what’s fuelling the big gold price rally

Gold’s ability to hold value in times of political and economic uncertainty makes it a favoured asset in central bank reserves. It is considered a long-term hedge against inflation.

On Camera

Why India fell off the global middle-class map

A stunted middle class may be a direct result of extreme inequality. Folks at the top don’t see teeming masses as a meaningful market, except for utilities, soap, short videos, and personal loans.

Antitrust watchdog Competition Commission to probe IndiGo flight disruptions

While the commission didn’t mention provisions under which IndiGo's market domination would be examined, Competition Act 2002 prohibits abuse of dominant position by any enterprise.

Israel has ‘realised who its real friend is’, eyes defence expansion in India amid arms curbs by others

It is argued that India-Israel ties are moving from buyer–seller dynamic to one focused on joint development & manufacturing partnership, a shift 'more durable' than traditional arms sales.

India’s top airline just handed sarkar the keys. That’s IndiGo’s real ‘crime’

Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.