Articles: November 2017

The asking price from the builders is (artificially held) steady and some are working almost like cartels to hold on to high-cost inventory rather than see the prices slide to their natural level to enable sales. An analysis of how many banks are financing this ride to doom would be interesting,... read more

Crude oil prices have sharply risen by almost 25 per cent in the past two months. There are several reasons for this. The latest anxiety could be due to the yet unknown impact of the purge in Saudi Arabia. Eleven members of the royal family, including the richest man in the world, four ministers... read more

A narrow direct-tax base, a retrograde direct-indirect tax structure, widespread tax evasion, complex tax rules, an inefficient and rent-seeking tax administration have been the hallmark of Indian taxation system since independence. Its dysfunctional nature has shaped the incentives of politicians... read more

The ban on cattle slaughter has come honoring the sentiments of millions of Indians. The ban seals the only measure that checked the bovine population and it has triggered an explosive growth in the number of animals. The increase in the population of economically unviable cattle is a sure threat... read more

The comparison with Pokhran can only be stretched so far. Unlike the Pokhran test, demonetisation has affected each and every Indian. If it turns out to be a net positive, that is still in the distant and uncertain future.

The problems of weak balance sheet and weak capital base are the result of inefficiency and mismanagement of the PSU banks. It also is a typical case of lack of governance. In that sense, recapitalisation offers moral hazard problems and its celebration as a “decisive package” makes a bad... read more

The others, including foreign shareholders too must put in funds. At what price will they be given this chance? Did they not enjoy windfall benefits of their stock value, at the expense of the taxpayer? How will the recap bonds be repaid by the banks?