With gradual resumption of supply chains, inflation may come down. Data has also been limited by the lockdown, so the MPC should wait before changing rates.
If India can put in a proper regulatory system, it stands to gain enormously as a producer and exporter of traditional herbal medicines.
There have always been questions over who controls cooperative banks in India, states or the Centre. The ordinance empowers RBI to intervene in failing banks.
The govt hasn’t done away with APMCs but given farmers the ability to sell outside mandis. Arguments that the ordinance violates the Constitution are flawed.
Farmers can lock in prices and buyers for their produce even before the harvest, and intermediaries can be assured of supply and price at the time of harvest.
Modi govt has made actual legal changes to implement its policy statements on agriculture reforms. It should now plug loopholes to realise their full potential.
The recession this time isn’t driven by inherent weakness in economies or factors like oil shocks. It’s also synchronous. This could quicken India’s recovery.
Resumption of economic activity can lead to a larger number of people falling ill than during the lockdown, and govt needs to make policy based on Indian data.
We saw how confusion in rules about air travel affected passengers. Agencies and authorities should give people adequate notice and allow them to plan.
The future of Covid-19 in India and its impact on the economy and govt revenues is unknown, so it’s better not to exhaust all options by May.