ILANOMICS

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.
Illustration: Ramandeep Kaur | ThePrint

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.
Illustration by Ramandeep Kaur

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.
Illustration by Ramandeep Kaur

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.
Illustration by Ramandeep Kaur | ThePrint

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.
Illustration: Ramandeep Kaur | ThePrint

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.
Image: Ramandeep Kaur | ThePrint

Centre vs states GST row doesn’t matter. What matters is reviving economy & a borrowing plan

Since general government debt will rise regardless of who borrows for GST compensation, a plan to move to a sustained borrowing trajectory should be made.
Image: Ramandeep Kaur | ThePrint

India’s fiscal crisis can only get worse as tax revenue is seen dropping 12.5% in 2020-21

GST revenue collected this August was 12% lower than the amount last August, and the economy is only crawling back to life post the Covid-19 lockdown.
Image: Ramandeep Kaur | ThePrint

Govt finances deteriorating. Postpone fiscal deficit goals, make economics more transparent

Fiscal deficit for 2020-21 was pegged at 3.5 per cent of GDP in Budget 2020. But Covid and the lockdown have made sure this is impossible to achieve.
The National Digital Health Mission announced by PM Narendra Modi falls within the purview of the National Health Authority, headed by Indu Bhushan | Image: Ramandeep Kaur | ThePrint

India needs a digital health mission. But it also needs data privacy law to ensure it works

If patients wish to change a healthcare provider, they have to carry pieces of paper. NDHM envisions changing that by digitally storing their health records.
Illustration by Soham Sen | ThePrint

Why loan restructuring is a welcome move from RBI, and what govt now needs to do for borrowers

RBI has accepted bankers’ demand for one-time loan restructuring instead of extending the moratorium as a way of countering the impact of the Covid-19 pandemic.
Ila Patnaik
Ila Patnaik is an economist and a professor at the National Institute of Public Finance and Policy.

Ila Patnaik & Shubho Roy