The price of fiscal exuberance

Politics is heating up. Elections in Bihar loom in November with Assam, Kerala, Tamil Nadu* and West Bengal tightly packed together in May next year, just after the FY 2021-22 budget. Bihar remains rural at heart. Luckily for the BJP, agriculture is the bright star in the Indian economy with expected growth of 3%. Doesn’t […]

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India needs a haircut

We have needed one since the 2008 global financial crisis when massive fiscal interventions provided the fizz to drag out a functioning economy for the next decade. The buzz fades This fizz has now run dry, sapped by – corporate freeloaders, who misused the cheap money at the expense of small investors, who naively assumed […]

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RBI Gov Shakti Das does a U turn

Since the government no longer leaks information to the press on what is about to happen, it is tough to figure out whether the unanimous decision to hold the repo rate (the bank rate) at 5.15 per cent by the Monetary Policy Committee (MPC) on December 6 has the Union government’s blessings. Maybe this is […]

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Its’ smart to stoke private demand

It’s going to be a sombre Deepawali this year. If there were any doubts, the RBI Monetary Policy report of October 4 dispels them succinctly. Missing demand Global apprehensions abound around the policy and political uncertainty unleashed by the proxy war for access to markets between the US and China. Back home, slowing private demand […]

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