Sunday, 25 July, 2021

ILANOMICS

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.
Illustration by Ramandeep Kaur

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.
Illustration: Ramandeep Kaur/ThePrint

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.
Illustration: Ramandeep Kaur/ThePrint

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.
Illustration: Ramandeep Kaur/ThePrint

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.
Illustration by ThePrint team

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.
Illustration by Ramandeep Kaur | ThePrint

Indian family budgets are stretched, they’re borrowing more. Faster vaccination can fix this

RBI data shows a sharp increase in households borrowing against gold. Other indicators also show higher borrowing. More credit is fine, but vaccination needs priority.
Illustration: Ramandeep Kaur/ThePrint

GDP data shows India is now on recovery path. But faster vaccination is key

With a decline in new Covid cases and gradual unlocking, demand will mend in the next few months. Some weekly indicators are already signalling a pick-up in economic activity.
Illustration by Ramandeep Kaur

Modi govt needs a Covid cushion. RBI must transfer more of its surplus funds

The RBI has held back Rs 20,000 crore as provisions. This could have helped the Modi government further at a time of tremendous fiscal pressure.
Illustration by Ramandeep Kaur | ThePrint

These 4 factors will shape how Indian economy rebounds from shock of Covid second wave

Current lockdowns, fear & uncertainty are driving down growth, but with second wave slowing, there’s hope that economic activity will improve in next quarter.
Illustration by Ramandeep Kaur | ThePrint

How this Covid wave has hurt Indian economy — falling indicators, lower growth expectations

Indian economy is expected to do better than last year, but growth could be 11% or even lower, compared to the pre-2nd wave projections of 13% and above.
Ila Patnaik
Ila Patnaik is an economist and a professor at the National Institute of Public Finance and Policy.

Others