The faux London clouds and cold plaguing Delhi over the past two months lifted and bright sunlight came tumbling through today with the arrival of the Brazilian President– lifting spirits around. Part of the lift was triggered by the enervating sight of the young men and this time loads of young women in uniform, who […]Read More Republic Day 2020 – A turning point?
In the run up to the annual budget it is said the Prime Minister is engaged in reviewing the working of departments in eleven hour long meetings. The PMs brand managers possibly think this nugget will comfort the nation that all is well, now that the man at the helm has his hand on the […]Read More Modi takes charge of the budget
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
A little history on economic growth – a major worry – can help provide perspective to today’s concerns. The incidence of annual downturns in growth (in constant terms) show a marked variance before and after 1990-91 in the Republics short economic history. Jagged growth in the first four decades Over the thirty-nine years prior to […]Read More External assistance can rescue the economy
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
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 […]Read More Its’ smart to stoke private demand
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!
It’s scarier going downhill than climbing to the top. Whilst on the way up, the heavyweight of inertia is known and hence manageable. Going downhill, inertia accelerates descent in unknown ways. The economy is no different. Flab (public sector banks), poorly maintained brakes (uncompetitive private firms), worn gear cogs (lack of structural reforms) or inadequate […]Read More Indian Economy – The great slide