The Reading List: January 31, 2025
Our research and opinion teams have curated a selection of articles and social media gems from the world of economy, business and finance for your weekend read.
Economic Survey's plain truth: We need to go beyond 6.5% growth
With the Union Budget around the corner, the real question is this: how will the government prioritize these reforms? What are the immediate steps that can be taken to accelerate India’s journey towards 8% growth?
How to make farm sector better? Economic Survey lays out the pitch
Disparity in agriculture sector growth rates among states is attributed to crop diversification
AI makes banks smart, but pain points remain, says Economic Survey
Relying extensively on AI to assess credit risk of a potential borrower opens up the bank to future vulnerabilities
Reforms in Insolvency Code: Why FM must take cues from Economic Survey
More courts, more benches, and better infrastructure were promised, but execution has been sluggish. Without immediate investment in strengthening the NCLT’s capacity, the backlog will only worsen, defeating the very purpose of the IBC
Consumption demand no worry line for the government
Rural demand is strong and expected to continue, urban demand shows a mixed picture, calling for moderation of expectations of a generous budgetary demand stimulus
Mahatma Gandhi’s Assassination: Blaming RSS, a tale of lies and political vendetta
RSSFACTS: After Gandhi's assassination, the RSS was wrongly blamed and banned. Despite unjust arrests and political targeting, investigations cleared the RSS of involvement. The ban was lifted in 1949, and subsequent investigations reaffirmed the organisation's innocence
Vault Matters | Catch ‘em young! Rethinking deposit strategies for the prime earning demographic
Indian banks favour senior citizens with higher deposit interest rates, but neglect the 28-55 age group. To attract younger customers, banks must innovate, perhaps by offering equity-like deposit products with guarantees, supported by regulatory and government backing
Is Wall Street ready to stay up all night?
The New York Stock Exchange is looking to trade for 22 hours a day — raising thorny questions about how equity markets function
DeepSeek exposes Wall Street’s myopia, AI’s potential
The drop in costs that DeepSeek has shown will lead to more frequent use of AI models for tasks where they were previously considered too expensive and the emergence of new applications and use cases
Does India Inc have a geo-strategic policy in place?
Without a clear geostrategic policy in place, Indian corporates face the risk of market access disruption, financial losses through sanctions and tariffs, heightened instability in operations and compliance headaches
Neoliberalism is dead, long live neoliberalism
A careful analysis of neoliberalism, along with the initial statements and actions of the Trump administration, might suggest a strengthening of neoliberal forces under his regime
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
Aligning incentives of SMEs and PEs can boost private industrial investment
A dedicated policy of allocating capital through NIIF or similar institutions to private equity funds focused on key manufacturing sectors in India, with an explicit mandate of funding primary capex and M&A in small and medium enterprises, may be the solution.
Cheap Chinese steel deluge affects Indian steel majors
Companies are lowering their guidance as falling prices hurt their profitability, leaving them hoping for some relief in the Budget from rising imports
Former CJI Khehar earns government’s appreciation despite taking contrarian positions
He was awarded Padma Vibushan this year. One of the noteworthy aspects of his tenure at the apex court is that his judgements, particularly in the NJAC case, ran counter to what the government argued. The Padma award is a measure of his credibility
For Indian Railways, the pandemic boom in freight traffic is slowly easing
Slowing freight traffic can weigh on Indian Railways' revenue growth unless passenger train business keeps up pace
Budget Snapshot: Interest burden on revenue uncomfortable, but FY26 could see relief
The only antidote to high interest payment is lower market borrowing
Banned or shunned, the two outcomes for finfluencers
SEBI’s January 29 circular to crack down on dubious finfluencers shields investors. The provisions prevent finfluencers from exploiting any potential loophole by imposing stiff compliance requirements on legitimate registered entities.
Union Budget 2025: Road to growth needs to be paved with reforms
While the government remains focussed on achieving its intended fiscal consolidation, it should continue to take the lead in capital spending.
Budget 2025: FM needs to focus more on infra investment than stimulating consumer demand via populist measures
With India’s economy at an inflection point, the decision to slightly increase the fiscal deficit could be strategic.
Harnessing private investment to fuel mega infrastructure projects
India’s infrastructure development relies on increasing private sector participation. The government must address challenges such as regulatory hurdles, land acquisition, and financing to enhance private investment in key sectors like ports, railways, and roads.
Strategic tax reforms in Budget 2025 for sustainable economic growth
The Union Budget 2025 is expected to focus on tax reforms, fiscal discipline, and growth stimulation. Key measures include tax simplification, incentives for GCCs and green energy, and improved dispute resolution, aiming to foster innovation, investment, and economic sustainability
Digital payments system needs to adapt to rural India’s realities
Digital payment mechanisms offer significant potential to empower rural and semi-urban borrowers. However, their success depends on addressing underlying infrastructural and educational challenges. Achieving financial inclusion in India’s heartland will require an approach that blends the innovation of digital systems with the reliability of traditional cash methods.
Budget 2025 could give India's electronics manufacturing industry a boost
India’s electronics manufacturing sector holds vast growth potential. Budget 2025 can boost this by strengthening PLI schemes, adopting Industry 4.0, enhancing domestic supply chains, upskilling workers, and improving export competitiveness, positioning India as a global electronics manufacturing hub.
