Central Bank Digital Currency (CBDC), a new asset class and system for global and domestic payments and settlements, has been under active research and development since around 2015. Oddly, the United States (US) seems relaxed about joining the race. United States makes up for lost time Reflecting this institutional languor, Jerome Powell, Chair of the US […]Read More CBDC: Minting the Future
Expectations are sky-high that the “digital rupee” — a central bank digital (crypto) currency (CBDC) announced by finance minister Nirmala Sitharaman in her Budget speech this year — will ensure a quantum jump to the digital economy, enhance GDP growth and boost financial inclusion. Digital currencies – democratized uptake Nigeria and eight Caribbean countries have […]Read More Digital Rupee- Taking India higher, faster?
Despite the hoopla around this year’s annual budget, it is unlikely to be a stunning display of “clever accounting” catering to all whilst pleasing none. Nor is it likely to strew goodies all around. Challenges abound The need is to spell out hard fiscal decisions. The list of challenges is long. The interest burden consumes […]Read More No room for extravagance in 2021-22 budget
We have got used to being feted by the international community as a “rising great power”. This suits our exaggerated self-perception and the choreographed diplomatic dance of real Great Powers (US and EU) with China, truly, a risen great power, albeit increasingly not a benign one. Covid mirror The Covid epidemic has shown up all […]Read More Trudging up the recession gorge
Deal making in banking is returning after a gap of four years. Banking, not the retail stuff but the kind which gets the economy moving, is classically done through deals struck over convivial lunches and dinners. It’s tough to make deals in an environment of zero tolerance for corruption Stung by the proclivity of the […]Read More Deal making is back-at last!
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 […]Read More The price of fiscal exuberance
Prime Ministers Modi’s address on May 12 was, as expected, a dog’s breakfast of proposals aimed at pleasing everyone. Please all stimulus 10.5% of GDP The Rs 20 trillion ($260 billion) stimulus “package” – around 10.5% of the likely GDP of Rs 190 trillion in Fy 2021 – is touted as a silver bullet which […]Read More New India – Vocal about local but aspirationally global
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 […]Read More India needs a haircut
So now that the wine has run dry; the Christmas cake is mere crumbs and the New Year eve shenanigans are forgotten let’s get back to basics. What is 2020 going to be about? In one word- tough except for large industry and private banks which shall clock handsome bottom lines, their bonus boosted employees […]Read More Keep the demand fires burning in 2020
The debacle in Jharkhand for the BJP will hopefully resonate more loudly in Nagpur, the RSS’ headquarters, than did the labored breathing of the economy over the past six quarters. After all, politics is the life blood of India. And political dominance follows economic growth and well-being. This was the message of development and jobs […]Read More Stoke “animal spirits” to let India breathe again