Exports in the first half of this fiscal year were $267 billion, 1.9 per cent higher than last year. This was dismal if exports are to be the engine driving GDP growth. Imports, at $312 billion, reflected poor domestic demand and contracted by 3.2 per cent. The only good news was that the trade deficit […]Read More A hybrid export model might fly
The film Joker – starring the amazingly versatile Joaquin Phoenix – now playing in the capital’s theaters – is a graphically violent and deeply despairing portrayal of a society sans any empathy for “losers” – those who end up believing they are one. Every society has its share of drop-outs, misfits and the unlucky. Good, […]Read More Beware a dystopic democracy
Amid the doom and gloom of the world economy, there are encouraging signs that the Indian government is now taking tangible steps to reverse the worst aspects of the slowdown in India. Ministers take the lead This is a huge step away from the collective “Nelson’s eye” which was being turned to the crisis earlier. […]Read More Early shoots of reforms revival
Two burly, senior citizens – Prime Minister Modi and President Xi doing a tango on the beach at Mamallapuram doesn’t quite evoke the carefully synchronised but fiercely intense passion of this Argentinian dance form. Even the cool looking, athletic Barrack Obama was left with two left feet when he was led onto the floor for a […]Read More Tango in Mamallapuram
Tough reform decisions are best taken in times of grave crisis not when the going is good. Economic reform, at the best of times, is highly disruptive. It makes little political sense, in the real world, to throw away the benefits of a stable, growing economy, in the hope that the future would be brighter […]Read More BJP needs a consistent Economic Ideology
Finance minister Nirmala Sitharaman looked relaxed and happy while briefing the press in Panaji, Goa, on Friday about the proposed corporate tax reductions. Her estimate of the loss from the revenue foregone is Rs 1.45 trillion — equal to half the estimated defence expenditure this year. Normally, any FM under fiscal pressure would have mourned […]Read More Reform in driblets keeps the party going
The first 100 days of the Modi 2.0 government have been marked by lows and highs. Sadly, the lows are longer lasting, while the highs are transient, even in the short term. The biggest low was the Budget for FY 2019-20 in July, which was presented, in the absence of the late Arun Jaitley, with […]Read More Modi 2.0 100 not out!
Finance Minister Nirmala Sitharaman might well be already thinking of penning a book on how demand vanished the moment she assumed charge. She faces an uphill task and has to carry the ball of lax governance earlier. We have sat on collapsing real estate demand for the last decade without doing anything more substantive than to […]Read More Who moved my demand curve?
Even the political surgical strike “integrating” Kashmir failed to divert attention from the woes of investors, employees and entrepreneurs — all of whom are stuck with a similar malady: poor returns. Where has the fizz gone? Why has the fizz gone out of the economy? Two alternative viewpoints suggest themselves. One is the view fingering […]Read More Indian economy riding a roller coaster
It is foolish to keep doing the same thing to solve a persistent problem. The Narendra Modi-led Union government has internalised this adage and strives to be big-bang innovative, as illustrated by demonetisation to control corruption, although with less than spectacular success. Article 370 – A Gordian knot or fig leaf Yet another instance is […]Read More Kashmir: Light beyond the Banihal Pass