BUSINESS
OPINION | Beyond Debt-to-GDP: The role of debt maturity in fiscal stability
Fiscal rules focus on debt-to-GDP ratios, but overlook debt maturity structure, crucial for managing refinancing risks. India's subnational governments exhibit varied maturity strategies, with longer maturities offering stability amid fiscal pressures
BUSINESS
OPINION | RBI's October 2025 Policy Shift: Bold regulatory reforms for a resilient future
The RBI’s October 2025 policy overhaul focuses on price stability, strengthened Basel norms, AI regulation, and revamped credit frameworks. This shift aims to enhance financial resilience, encourage innovation, and sustain growth
BUSINESS
OPINION | Empowering women through fiscal measures requires a nuanced approach, not only cash transfers
While cash transfers provide immediate financial support, they might not necessarily lead to long-term “agency” in a woman or her economic empowerment. Participation income, on the other hand, encourages women to engage in economic activities
BUSINESS
A Budget amidst macroeconomic uncertainties
The Union Budget 2025-26 aims to balance fiscal consolidation, growth, climate change commitments, and the challenges of demographic transition. Key focuses include green bonds, climate fiscal instruments, boosting female labour force participation, and addressing the care economy and digital infrastructure needs
BUSINESS
Spare a thought for 90 hours of unpaid work
GDP is built on paid work, 90 hours a week or less. But unpaid work, mostly by women, in the care economy is glossed over in a debate on India having to work longer hours. Making the number of working hours the focal point of discussion overlooks the nuances of the labour market which plays a role in restricting the number of women who can take paid jobs. India needs to work smarter, not longer
BUSINESS
Manmohan Singh: The leader who ‘opened up’ the Indian economy
Much has been written about Singh’s role in India’s economic liberalisation. An economist views Singh through the prism of her profession and highlights that personality traits of leaders have an impact on a country’s economic trajectory. Manmohan Singh was indeed one of a kind
BUSINESS
Alarmism over India's public debt is unwarranted
India's debt level is sustainable when seen in the context of it's economic growth. Therefore, it's important to avoid a hasty reduction in the ratio of fiscal growth to GDP ratio as borrowing has gone into creating building blocs of future growth. A Fiscal Council will help access debt level in an appropriate way.
BUSINESS
Economics Nobel winners sought to answer the question why some nations lag others
The novelty in their work is the way they put 500 years of statistical evidence to show that the quality of institutions determines success. Democracies have a better chance of getting rich. China, however, remains an enigma which doesn’t fit this explanation
BUSINESS
RBI’s monetary policy prioritises global economic headwinds
MPC has given relative significance to global headwinds and uncertainties. Therefore, a sudden reduction in rates is not feasible when inflation expectations are elevated. The catch, however, is high rates complicate public debt management
BUSINESS
Leave No One Behind: The philosophy underpinning the Interim Budget
The Finance Minister has articulated her budget as a “humane” budget with fiscal consolidation as a primary consideration. A “beyond GDP” emphasis is welcome, incorporating the widening inequalities, climate change concerns and human capital formation
BUSINESS
Union Budget 2024: Amid global headwinds, there is no room for irrational expectations
The fiscal deficit target for FY25 in the midst of weaker nominal GDP growth and disinvestment shortfall will be below 6 percent, slightly around 5.2-5.5 percent. This fiscal glide path is crucial to reach the 4.5 percent fiscal deficit to GDP by 2025-26
BUSINESS
MPC Meeting: Amid too many risks, status quo in policy rates is welcome
The combined fiscal-monetary risks and climate change related risks can trigger an irreversible threat to the global economy. Against this backdrop, the RBI Governor has judiciously conducted his policy rate manoeuvring, with majority votes for the decision of status quo in policy rates. This RBI decision is welcome, despite all the trade-offs it entails
BUSINESS
Sixteenth Finance Commission and ‘beyond the GDP’ paradigm
The analytical framework of the 16th Finance Commission will be 'beyond GDP', by integrating human development variables. Will it also apply a 'gender lens' in the inter-governmental fiscal transfer framework within the terms of reference?
TRENDS
Economics Nobel & Women in Labour Force: Why policymakers need to consider Goldin's work
The 2023 Nobel economics laureate has shown that the bulk of this earnings difference is now between men and women in the same occupation and that it largely arises with the birth of the first child
BUSINESS
Debt Sustainability: G20 should seek interest rates lower than growth rate
High interest rate affects public debt management when debt servicing becomes costlier. The pragmatic baseline for the G20 fiscal sustainability is to have a check on the cost of borrowing and rate of economic growth, opt for debt restructuring and go soft on numerical thresholds
BUSINESS
Rs 2,000 ban: Transitional disruptions in ease of doing business likely
As the Rs 2,000 banknote is still legal tender in India, the likelihood of economic disruptions is comparatively lesser. However, the ease of transactions will be disrupted post the RBI’s decision to withdraw Rs 2,000 notes.
BUSINESS
What central banks need to consider when making monetary policy in times of war and crisis
The central banks' lack of understanding about the non-monetary components of inflation in times of war and crisis, driven by disruptions in supply chains is reflected in its policy to tackle inflation through a series of interest rate hikes
BUSINESS
Women's Day: Is India doing enough to boost Nari Shakti?
Gender Budgeting is a promising framework for ensuring women-led development. It is laudable that the narrative has shifted from women’s development to women-led development
BUSINESS
Kerala Budget: A plan for less painful fiscal consolidation
The narrative so far in the context of Kerala has been the high debt burden of the state and its “intergenerational inequity” in the sense that today’s deficit is tomorrow’s taxes – leaving future generations in debt. With this budget, the tax burden is shifted to the present generation
BUSINESS
Budget 2023 has stayed on the fiscal consolidation path
Despite the global economic headwinds and geopolitical uncertainties, the fiscal arithmetic looks conservative
BUSINESS
Budget 2023: Expect the Centre to address fiscal stress faced by states
As states are doing the heavy lifting post-pandemic to enhance public investment, we do expect a hike in the capex transfers to the states in the upcoming Union budget
