Minutes of Monetary Policy Committee meeting show that several members felt debt-fuelled consumption could become a ‘self-fulfilling prophecy’ to boost overall growth.
States worried over Centre slashing their funds, which could be used for capital creation, by considering liabilities of state entities while determining net borrowing capacity.
India's debt markets have been reeling under the coronavirus lockdown, prompting risk-averse investors to dump assets and worsening liquidity in some corporate bond trading.
RBI has to improve monetary policy transmission & undertake reforms like setting up public debt management agency & boosting bond market infrastructure.
The ‘great rivalry’ angle was also blown out of proportion, given that India now holds a handsome record of wins against Pakistan in T20 World Cup matches—8-1.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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