BUSINESS
Cost factors will make it hard for the RBI to turn its pause into a pivot
For a long spell of 18 months that ended last year, WPI inflation was in double digits but that did not show up as a surge in consumer prices. It is possible that producers absorbed the rise in costs by taking a hit in their margins. And now that WPI inflation is nose-diving, we may not see the expected pass-through to consumer prices as producers may be taking it as an opportunity to recoup the lost profits of the previous years
BUSINESS
The RBI’s rate hike pause is flattering to deceive
It seems that the MPC took a calculated gamble to give some relief to the fledgling growth in the economy. This is a deviation from its monetary policy mandate according to which inflation control is supposed to be the priority “while supporting growth”
BUSINESS
MPC | RBI’s monetary policy stance is ‘owlish’
The lower quantum of the hike seems like a prudent decision that balances the growth and inflation risks, making the monetary policy stance neither hawkish, nor dovish
BUSINESS
Indian economy faces external headwinds but is a bright spot amidst global slowdown
All forecasts must be taken with a handful of salt. In the pandemic year, the IMF forecasted India’s GDP to fall by 10.3 percent. We ended up with a lower fall of 6.6 percent
BUSINESS
The RBI has done a fine job of managing the rupee’s fall
The Reserve Bank of India took several steps to mitigate the rupee’s woes, and even though the currency has weakened, the RBI has ensured that the rate of decline has been arrested
BUSINESS
Strong fundamentals to help Indian economy face global headwinds
India is not insulated from the global upheavals. Growth projections have been revised downwards in the past few months as exports will take a hit. However, the status of economic stability parameters is encouraging
ECONOMY
GST @ Five | GST has had a positive effect on tax collection, but hard to quantify it. Here’s why
The benefits of any tax reform should not be seen in terms of government revenues alone, but through wider implications for the economy
BUSINESS
Sri Lanka Crisis | Why India has fared better than its neighbour
Sri Lanka’s biggest macroeconomic mismanagement was the central bank’s failure to handle the impossible trinity — the truism that a fixed exchange rate, free capital flows, and sovereign monetary policy cannot co-exist
BUSINESS
Ukraine War: How serious is the risk of stagflation in India?
The COVID-19 shock was a mix of demand and supply shocks, hence inflation stayed within bounds. The Ukraine crisis is a pure supply shock
BUSINESS
Reforms can immunise Indian economy against shocks in 2022
There is no substitute for unrelenting efforts towards GDP growth. It is the antidote that will reduce inequality and raise living standards
BUSINESS
India’s economy is on a bumpy road to recovery
While growth is expected to pick up pace, the government must continue measures to stimulate demand through targeted cash transfers and improve business conditions on a continuous basis
BUSINESS
With volatile growth and inflation, RBI has to keep re-inventing monetary policy
The RBI has to re-imagine monetary policy in the face of K-shaped growth where some sectors are hit harder than others due to no fault of theirs
BUSINESS
Focus on industry competitiveness, not sectoral subsidies, to boost growth
The NITI Aayog can help by devising a national economic strategy (not plan) which will provide the road map for converting the entire country into a special economic zone instead of tinkering with select sectors
