Modi 2.0 Different Economic Strokes?

The 2019 election results illustrated the transformative political and social changes sweeping India. Will the new Narendra Modi government adapt its economic policies to fit the changed expectations or will it dish out more of the same? The honeymoon is over The 2014 Budget was expectedly a laundry list of good intentions. Five years down […]

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The common sense on jobs

The recent statistical dogfight around job creation, using data as ammunition was between NITI Aayog, intent on proving that there is no slow-down in job creation or more accurately productive work and the CMIE convinced that there has been a net job loss during the Modi years, with no give on either side. Empowered elites […]

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Das – the new Raja of Mint Street

Babus are hugely upset, understandably so, at the less than laudatory media coverage of Shaktikanta Das, an IAS officer of the Tamil Nadu cadre who had retired as secretary, economic affairs, in the finance ministry and was appointed the 25th governor of the Reserve Bank of India last week. The first two governors of the […]

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Deepawali depression unwarranted

Nothing makes Diwali sparkle more than the comforting bulge of spare cash in one’s pocket. This year there are few who could claim that privilege. Suffering in tandem are the unfortunates who catch the trickle lower downstream. Body blows to carefree spending have taken their toll. The combined effect of the Goods and Services Tax, […]

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What the cash crunch foretells

Conspiracy theorists are hard at work to identify the drivers behind the ongoing cash crunch, that has left the automated teller machines (ATMs) in cities and towns across large parts of the country dry. There is much finger pointing between the Reserve Bank of India and the commercial banks, both private and public sector, each […]

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Moody God of bond markets

The international bond market, with an outstanding volume of around $22 trillion, is the final arbiter of a country’s destiny. Bonds, unlike loans, can be traded, or “marked to market”. This makes trustworthy credit ratings, like Moodys’, critical to give pricing signals. Since there is a market, even discards are recycled. Discards are called “junk” […]

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“Demonetisation” as a morality play

The politics around “demonetisation” — a misused term for what happened on November 8, 2016 — has taken centerstage in the run-up to the Assembly elections in Himachal Pradesh (that voted yesterday) and Gujarat (which goes to the polls in December). Finance minister Arun Jaitley has added “morality” to the cluster of objectives, that seemingly […]

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