Articles: December 2016

By: Ajit Ranade
Category: Common citizen, Union Budget, India politics
A slew of financial sector measures can be announced, which will lead to the deepening of the sector. Bank consolidation must also be pushed. It may be a good idea to give some relief on personal income taxes as well, but in a way that does not significantly deplete the tax net.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, RBI, India politics
Apart from flagging concerns on inflation, the central theme of the minutes is the lack of transmission of repo rate cuts. The transmission of monetary policy is critical to ensure an appropriate interest rate regime which will be conducive to reinvigorating the real section and promoting growth.
By: Ajit Ranade
Category: Common citizen, India politics, Inclusive growth
The Mahatma Gandhi National Rural Employment Guarantee Scheme, popularly known as NREGA, was launched after the passage of the landmark Act of the same name in 2005. It is the largest such employment based anti-poverty programme in the world. As the name suggests, it guarantees gainful employment... read more
By: Usha Thorat
Category: Common citizen, RBI, Indian economy
In the backdrop of an imminent Fed hike, the global uncertainty, as also the difficulties in assessing the macro –economic impact of demonetisation on the domestic economy, the MPC members –all six of them - have unanimously chosen to wait and watch and not make any changes in the repos rate.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: Common citizen, RBI, Indian economy
Instead for harping on cuts, the banking sector might be well advised to handle the complexities arising in the near term out of liquidity and the concomitant impact on deposits and lending rates, but most of all the challenges that still remain on account of large NPAs in the system.
By: Aneel Karnani
Category: Common citizen, India politics, Inclusive growth
The CSR law is inherently contradictory. Without a coercive enforcement mechanism, it is unlikely that the law will result in widespread compliance. In other words, ‘required’ CSR will remain largely voluntary, but give the illusion of progress. This is ‘greenwashing’ on a national scale.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: RBI, India politics, Indian economy
Rarely has this 80-year-old institution been in the headlines almost daily, with questions, doubts and clarifications being sought by a harried citizenry and answers flowing only in fits and starts, more to cross a new hurdle or fix a creeping problem rather than as a cogent policy announcement.
By: Ranjit K Pattnaik, Jagdish Rattanani
Category: RBI, India politics, Indian economy
The priority now should be to restore normalcy by smoothening the process of liquidity management and more importantly, enhancing the currency note availability and removal of weekly and daily restrictions on withdrawals. Currently, the business environment is not encouraging as confusion rules.
By: Ajit Ranade
Category: RBI, Indian economy
The rupee needs to soften, because measured in real effective terms, i.e. adjusting for inflation differentials, and by taking a trade weighted average, it has been highly overvalued. This is called the overvalued real effective exchange rate of the rupee. This affects our exports negatively.
By: Arun Maira
Category: Jobs, India politics, Inclusive growth
Jobs cannot be sprinkled into the economy by the government. Jobs will emerge from interactions of many drivers in the economy—the growth of enterprises, life-long learning systems and social security, as well as the quality of physical infrastructure and the ease of doing business.