ILANOMICS

Bans can’t banish north India’s toxic air. It needs creative solutions and perseverance

The air crisis needs many creative solutions, including technology and citizen participation. SC order to pay farmers not to burn stubble is the first step.
Traders have blamed e-commerce sites like Amazon & Flipkart for poor Diwali sales

Regulating Amazon, Flipkart is a shock Indian economy can’t afford now

Traders have blamed the likes of Amazon & Flipkart for poor Diwali sales and want govt to regulate them. But e-commerce is only a small part of retail business.
Air India is one of the PSUs up for disinvestment

Fiscal stress offers Modi govt great opportunity to push disinvestment

Disinvestment receipts are budgeted at Rs 1.05 lakh crore for FY20 but until Aug govt earned just Rs 12,358 crore, or 12 per cent of budgeted amount.
PM Modi's rally in Kurukshetra

This is the real culprit behind Delhi’s poisonous Diwali air and PM Modi has a fix for it

Groundwater depletion forced the Haryana & Punjab govts to delay the paddy crop, resulting in the rise in air pollution in Delhi & surrounding areas.
Image: ThePrint.in

Private banks are also in trouble, Modi govt must act now to set up resolution capability

When private banks get into trouble, unsophisticated households lose their bank deposits. To protect them, a resolution corporation needs to be set up.
Market in Ayodhya

The disruptive reform that’s responsible for India’s consumption slowdown

There are no short-cuts to pushing India’s consumer demand as the phenomenon is part of a larger trend towards formalisation of the economy.
BRICS leaders

To increase cooperation, BRICS countries need bottom-up approach, people-to-people connect

Despite the opportunities and great potential, intra-BRICS trade and investment flows are very low. Here are some ways in which this can be fixed.
Finance Minister Nirmala Sitharaman speaks with NITI Aayog CEO Amitabh Kant during a meeting | PTI

Fall in GDP growth needs to be reversed before it becomes a sustained downward spiral

The fall in GDP growth needs to be reversed before it becomes a sustained downward spiral. Sharp tax cuts can help, as can a move away from the tax raids policy.
Punjab National Bank

Merger of banks raises more questions than solutions it offers India’s slowing economy

Consolidation of banks reduces competition, raises fears of cartelisation on interest rates and reduces the hope of privatisation.
Finance Minister Nirmala Sitharaman with RBI Governor Shaktikanta Das | Photo: Suraj Singh Bisht | ThePrint

Amend the law to settle conflict over RBI’s surplus once and for all

The transfer of surplus and excess capital is the right step, but the problem should not be left ambiguous in law. Parliament must debate and amend RBI Act.
Nirmala Sitharaman press conference

Next, Nirmala Sitharaman needs to undo the mistakes of her predecessors

Rollback of tax on FPIs & surcharge on capital gains tax only undo wrong done in this year’s budget, not those in decades earlier.
Ila Patnaik
Ila Patnaik is an economist and a professor at the National Institute of Public Finance and Policy.

Ila Patnaik & Shubho Roy