Tag: Macro-economy

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

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Defining the frontier sector

The new normal after Covid-19 requires a re-imagining of macroeconomics: we need to start defining the contours of, and measuring, the fourth sector. (First of a two-part article) “There are three estates in Parliament but in the Reporters’ Gallery yonder there sits a Fourth Estate more important far than they all. It is not a figure of speech or witty saying, it is a … Read More Defining the frontier sector

Landmark Reforms in Indian Agriculture

Notes from a Live Webinar co-hosted by Axis Bank and agribazaar The panel was represented by senior government officials, investors, developmental agencies, agri-industrialists and a banker. The reforms undertaken by the Government were outlined and explained by the four Secretaries to the Government of India. These reforms have been variously called the “watershed moment”, “1991 moment”, and the “unshackling” of Indian agriculture, especially since … Read More Landmark Reforms in Indian Agriculture

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Medium-term dynamics for India post Covid-19 lockdown

Shape of economic recovery will determine employment, debt and exchange rates. The immediate fiscal deficit dynamics and growth outcomes for India post Covid-19 lockdown have been the subject of intense analysis and discussion. The human crisis of lives and livelihood did demand both an immediate and urgent response. With the lockdown now opening and economic activity picking up, it is important to look beyond … Read More Medium-term dynamics for India post Covid-19 lockdown

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The Ladder of Development and Progress

Development and Progress go hand-in-hand; getting on and remaining on the ladders key to economic growth for individuals and nations. As India changed and economically progressed, it brought hope. There was indeed a pathway out of the poverty that the slow growth of the many decades had foisted upon the society. There was now a way to get out of ration queues to become … Read More The Ladder of Development and Progress

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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. India’s response to its dilemma will determine whether budgets of the next decade will have larger incomes to tax or larger taxes on incomes. This Budget Speech of the finance minister was one of the longest in recent history. Her previous Budget speech in July last year was around 11,000 words. This … Read More Larger incomes to tax or larger taxes on incomes?

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Here’s why India may end up choosing capital flows over current account flows

India may end up implicitly choosing a stance of preferring capital flows over current account flows, if it sets a GDP target in a foreign currency. A currency serves two purposes: medium of exchange and store of value. We have explored this idea in these pages in a different context earlier when we looked at the relationship between legacy finance firms and fintech companies. … Read More Here’s why India may end up choosing capital flows over current account flows

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State finances: Finding the monies

As the Centre and States try to find GST compensation cess monies, it is time to look beyond the present, to see how the future could unfold for State finances. The financial relationship between states and the Centre has been in news recently. The Fifteenth Finance Commission submitted its report to the president; there have been some delays in payment of the GST compensation … Read More State finances: Finding the monies

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Fiscal architecture for a US$5 trillion economy

The evolution of India’s tax-to-GDP ratio will require significant political and social consensus—a strategic modelling and planning of tax POLICIES is required. India’s tax-to-GDP ratio at the government level has hovered around 18-19% of GDP over the last few years (between FY17 and FY20E). Coupled with disinvestments, dividends, and other receipts, the central government mops up another 5-6% of GDP, taking the total revenues … Read More Fiscal architecture for a US$5 trillion economy