ILANOMICS

RBI’s mega financial package will work only if Modi govt plans for life after lockdown

Govt will need to get both production & consumption back on track quickly after the lockdown is lifted and also have adequate health safety norms in place.
Informal sector workers are expected to be the worst-hit by the nationwide lockdown due to coronavirus (representational image) | Photo: Praveen Jain | ThePrint

3 critical steps Modi govt must take to protect people and economy during Covid-19 lockdown

Lockdown will help health system be better prepared, but there’ll be many jobless & destitute. The Rs 1.7 lakh crore package announced Thursday is a start.
People wearing masks | ANI

Faced with COVID-19, India chose to protect lives, not livelihoods. And that’s a good thing

Preventing the spread of the coronavirus before it infects more people is critical. If it doesn’t hit the working population badly, the economy will bounce back.
India has suspended tourist visas to help contain the spread of the coronavirus (representational image) | Photo: ANI

India doesn’t have too many options to deal with economic impact of coronavirus

India does not have the healthcare infrastructure to cope with the spread of coronavirus, but it can do one thing to minimise the economic shock.
Account holders stand in a queue to withdraw money from Yes Bank at Bandra, Mumbai, Friday | Photo: ANI

Yes Bank crisis shows why India needs a resolution mechanism to act before it is too late

Yes Bank should’ve been overseen by a Resolution Authority, depositors shouldn’t have had to face moratorium. Now SBI or LIC shouldn’t be forced to buy it.
Workers load sack of Barley onto a truck at a grain market in Rewari, Haryana. | Photographer - Anindito Mukherjee | Bloomberg

How India can stop over-producing cereals & give people what they want — veggies, dal, meat

India spends lakhs of crores to produce wheat and rice, which then doesn’t get sold. It’s because the food policy has remained pro-cereal since the 1960s.
LIC headquarters in Mumbai

How the LIC mega IPO can also help reform India’s larger financial sector

If done right, IPO can bring transparency & efficiency to LIC, ensure govt doesn’t force it to buy weak PSUs, and improve resource allocation in the economy.
farmers

How a reform on Modi govt agenda can protect your deposits & keep banks from failing

Bringing back the Financial Resolution and Deposit Insurance Bill could be a very important reform in laying the foundations of a stronger financial system. 
The Reserve Bank of India | Photo: Suraj Singh Bisht | ThePrint

RBI has chosen the easy path, but it won’t solve structural problems in financial sector

RBI’s regulatory measures to allow banks to lend more to some sectors may help revive credit for a quarter or so, but they don’t address fundamental issues.
Finance Minister Nirmala Sitharaman ahead arrives in Parliament to present the Union Budget 2020-21 Saturday | Photo: Praveen Jain | ThePrint

No big fiscal stimulus in Nirmala Sitharaman’s Budget 2020, but govt can still do it later

Finance Minister Nirmala Sitharaman can do more on policy and legislative changes that are not related to tax, revenue and expenditure.
Finance Minister Nirmala Sitharaman will present the Union Budget for 2020-21 on 1 February | Photo: ANI

Nirmala Sitharaman’s Budget has to present credible numbers, and commit to fiscal prudence

While the time to do fiscal expansion is when the economy is slowing, there is little point in having a discussion around numbers that people do not believe.
Ila Patnaik
Ila Patnaik is an economist and a professor at the National Institute of Public Finance and Policy.

Ila Patnaik & Shubho Roy