Category: Macroeconomy

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Fiscal considerations of the Green transition

State of public finances has a direct impact on Green policies that Government can pursue – the range of policy options gets shaped by the need for more revenues or the ability to spend them Financial Express India’s commitment to Net Zero by 2070, has well and truly set the course for a Green transition in the country. Many aspects of this once-in-a-lifetime change … Read More Fiscal considerations of the Green transition

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EFGHIJK: Taking stock of the Indian economy

Exports, fiscal, growth, health, inflation, jobs, and capital: sizing up the dynamics in the Indian economy in these volatile times Financial Express In September last year, with two waves of Covid-19 largely behind us, we had taken a mid-year stock of the Indian economy using the EFGHIJ framework. We relook at these factors again as many macroeconomic factors have changed dramatically, especially in the … Read More EFGHIJK: Taking stock of the Indian economy

India’s Union Budget FY2023 – Impetus for investments and capex

Financial Express Indian government presented an investment-oriented budget with a focus on getting future ready. Increasing public investments and capital expenditure are expected to take the combined (Centre plus States) public capex to more than 4% of GDP in FY2023 from ~3% over the last few years. Advance growth estimates for FY2022 of 9.2% make India the fastest growing large economy: the increased capex … Read More India’s Union Budget FY2023 – Impetus for investments and capex

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India: Getting ready for global macro resets

Second wave of Covid-19 is now behind us. Localized lockdowns are opening, economic activity is coming back to pre-pandemic levels, and vaccinations are now proceeding apace with large, assured supply over the next few months. Reserve Bank of India (RBI) has eased monetary conditions for the stressed sectors and Government has extended its program for support to the vulnerable. With fiscal space available as … Read More India: Getting ready for global macro resets

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Infra investment plans: India and the USA

Financial Express Two of the largest democracies have embarked on a massive capital investment planover the next few years US President Biden recently announced a two-part plan to invest in the USA: first part of the plan details a USD 2.2 trillion investment in “hard” infrastructure and second part, the families plan, puts in USD 1.8 trillion in “soft” infrastructure. The combined plan, at … Read More Infra investment plans: India and the USA

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India’s USD 550 bn stimulus

Relaxation in fiscal deficit targets creates enhanced fiscal space for India: this offers an opportunity to build India Financial Express Last month was abuzz with many commentaries on the Union Budget 2021-22 – the document was dissected for its numbers and narrative. Many new and bold ideas such as privatization of public sector undertakings (as the Government confines itself largely to the strategic sectors), … Read More India’s USD 550 bn stimulus

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Hedging INR for the long-term

Foreign investors with long-term commitments to Indian infrastructure need the ability to hedge their currency exposure in India. The exposure can typically last for multiple decades, especially in the context of infrastructure. The recently concluded Virtual Global Investor Conference saw large global investors recommitting to their interest in investing in India for the long-term. For investors, the return they seek is dependent on the … Read More Hedging INR for the long-term

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Larger incomes to tax or larger taxes on incomes?

Budget 2020 cares for people’s economic aspirations, says Axis Bank’s Akhilesh Tilotia

A day in the life of an Indian

 What the numbers say—how men and women spend their day differently; and how much bijli, sadak, paani can improve productivity Here’s a question that has been of interest to me: in a country of 1.4 billion people, if only approximately 400 million are in the workforce, what is it that the remaining billion people do?   We now have some answers. Time Use Survey … Read More A day in the life of an Indian

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Finding investors for State debt

As States issue more debt, finding the investors who will subscribe to the issue will require expanding the current pool of investors and making the investment more lucrative. While there have been many deliberations in these pages on the growing amount of debt that the various tiers of the government (Centre and States) will have to raise, little discussion has gone into who they … Read More Finding investors for State debt

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Getting the vaccine to a billion plus people

India can learn a lot from its experience in managing cash – getting a billion people what they need can be planned effectively. A vaccine for Covid-19 is expected to come sometime over the next few months – hopefully in this year. Once a vaccine is available, getting it to India’s billion plus people is a logistical challenge with many moral and ethical questions … Read More Getting the vaccine to a billion plus people

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Making the frontier sector work

Many of the networks of value could start to become ‘utilities’ as they become more embedded in everyday lives. In the previous article, we introduced the idea of the D-sector. The three traditional sectors have a well-defined, or largely settled, understanding of the many elements that build them: (1) what resources are required, (2) employment and its regulations, (3) the path to skills, (4) … Read More Making the frontier sector work