From Japan in the 1960s to China in the 2000s, many countries transformed their economies by using competitive exchange rates as part of their industrial strategies.
RBI retained its projection of 6.5% growth, but highlighted global uncertainty, particularly due to renewed tariffs from July & volatility in commodity prices as risks to growth outlook.
The Economic Survey, which was recently presented in Parliament, also estimated headline inflation for FY26 at 4.2%, while for the current fiscal, it is expected to be around 4.8%.
Both the government and the RBI are currently so focused on their respective targets that they are losing sight of the fact that some flexibility might actually be a good thing.
A big source of uncertainty will be trade after Trump assumes office. However, within India, rural demand is likely to sustain momentum & inflation is less likely to be a big problem.
RBI has kept repo rate high & unchanged at 6.5% since February 2023 in an attempt to slow credit growth & thereby lower inflation. This has not come to pass, ThePrint’s analysis shows.
With Sanjay Malhotra at the helm, RBI could shift towards a more dovish monetary policy, but the conventional policy response of rate cuts will not be a given with rising pressure on rupee.
The Modi govt’s priorities are chillingly lopsided. Instead of stabilising the economy, Modi and his cohorts are busy spurring religious conflicts to win elections.
Investors are pricing in lower taxes and new trade tariffs under the Trump administration, measures seen as inflationary which could prompt Fed to curb easing of interest rates.
The ‘Saiyaara Effect’ has shaken up Bollywood, unable to decode or deconstruct its massive success. Take a look at the staggering numbers: Rs 576 crore on a Rs 40-60 crore budget.
Gurugram: Stirring a storm in Haryana's real estate circles, the Haryana Shehri Vikas Pradhikaran (HSVP)—the state's urban development agency—has taken on the role of...
In its toughest time in decades because of floods, Punjab would’ve expected PM Modi to visit. If he has the time for a Bihar tour, why not a short visit to next-door Punjab?
This is lazy thinking for people who don’t want to swallow bitter pill of reforms.
Petrol taxes by both Centre and State, make input costs high for MSMEs. And what is rhe tax money spent on?
Over procurement of rice from Punjab, and sugarcane from Vidarbha. Free electricity for water pumps, to grow these crops, comes by making it costly to factories. Subsidizing urea, that is being abused by farmers, making the farm saline.
Crop diversification to less water-intensive crops, would indirectly help MSMEs, by reducing their costs.
And all this is before we do labour reforms.
This is old world thinking. Cheap manufacturing drove industrialization 30-40 years back, today with robotics pure labor cost savings are not that important. Genuine innovation, value addition drives manufacturing today. Tanking the currency, will increase inflation, deflate FII confidence and hurt the economy.
Since college, have been reading that a weak currency is good for exports. How then does one reconcile the sluggishness in merchandise exports over the last decade, even as the Rupee has continued to sag.
The very same people who had problems with rupee between 50 and 60, are now advocating still more fall. (The question is not falling per se ,but the value of rupee at one stage indicates the efficiency of the Govt in utilizing/wasting/misdirecting the resources at hand). That clearly indicates lack of balance and direction.
This is lazy thinking for people who don’t want to swallow bitter pill of reforms.
Petrol taxes by both Centre and State, make input costs high for MSMEs. And what is rhe tax money spent on?
Over procurement of rice from Punjab, and sugarcane from Vidarbha. Free electricity for water pumps, to grow these crops, comes by making it costly to factories. Subsidizing urea, that is being abused by farmers, making the farm saline.
Crop diversification to less water-intensive crops, would indirectly help MSMEs, by reducing their costs.
And all this is before we do labour reforms.
This is old world thinking. Cheap manufacturing drove industrialization 30-40 years back, today with robotics pure labor cost savings are not that important. Genuine innovation, value addition drives manufacturing today. Tanking the currency, will increase inflation, deflate FII confidence and hurt the economy.
Since college, have been reading that a weak currency is good for exports. How then does one reconcile the sluggishness in merchandise exports over the last decade, even as the Rupee has continued to sag.
The very same people who had problems with rupee between 50 and 60, are now advocating still more fall. (The question is not falling per se ,but the value of rupee at one stage indicates the efficiency of the Govt in utilizing/wasting/misdirecting the resources at hand). That clearly indicates lack of balance and direction.