RBI’s aggressive forex interventions have countered volatility, but at what cost?
Foreign exchange interventions, both spot and forward, effectively counter capital flows volatility, with symmetric effects of purchases and sales, says article by RBI researchers
Pritish Nandy: An editor who had your back
Pritish Nandy was a man of parts. It was as an editor that he displayed leadership qualities which set him apart. A journalist who worked with him narrates an incident which encapsulates the man, one who embodied raw courage, high journalistic principles and unimpeachable integrity.
The Reading List: January 17, 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.
America’s great already; trade wars won’t make it greater
Donald Trump will be sworn in as US President next week for the second time. In this context, an economist argues that despite deep underlying fractures in its soil, America does not need to be made great again. It is great in many ways. Instead of triggering futile tariff wars, the incoming policy team can look at another way to bring back manufacturing jobs
Vault Matters | Will the zing factor make a comeback in bank stocks?
The banking sector's performance has stagnated due to low growth, asset quality stability, and missing differentiation among banks. With valuations dropping and no fresh triggers for re-rating, investor interest remains muted, leaving the sector without a clear path forward
Donald Trump’s Treasury pick says unwinding tax cuts would spark ‘economic calamity’
Scott Bessent also tells US senators in heated confirmation hearing that he backs tougher sanctions on Russian oil
Trump 2.0 tariffs will worsen global economic climate, but India’s main problem is domestic trade policy
Donald Trump’s second stint as US President is expected to be consequential. Ahead of his swearing in, a trade economist assesses the likely fallout of his penchant for import tariffs. Disruptive as an increase in US tariffs may be, India’s real binding constraints may in choices made here
IBC: Striking a balance between corporate revival and challenges
Finance Minister Nirmala Sitharaman’s commitment to strengthening the code, as emphasized in the 2023 Union Budget, offers hope for improvements in the upcoming Budget 2025.
Mohan Bhagwat's remarks on Ram Temple and India's independence explained in historical context
RSSFACTS: Mohan Bhagwat’s remarks linking the consecration of the Ram Temple at Ayodhya to India's true independence have sparked controversy. He emphasised that the Ram Temple represents a victory of civilisational values over centuries of foreign invasions and religious intolerance
What does a shift from minimum wage to living wage mean for India’s poor?
India’s plan to shift to a living wage from minimum wage that will consider basic living and social needs may not mean much unless it’s implemented in letter and spirit by states
Infosys vs Ravi Kumar signals the end of amicable exits in Indian IT
In hypercompetitive times when companies have to fight for every percentage point of margin, the days of senior leaders exiting to the happy strains of 'Fare thee well' are over
Budget 2025 must give a fillip to start-up funding
Sector-specific reforms, such as infrastructure development grants and technology adoption incentives for manufacturing, could unlock new growth opportunities
Key Expectations for Union Budget 2025: Tax reforms and relief
With the Union Budget 2025 approaching, taxpayers and industry professionals anticipate significant tax reforms, including increased exemption limits, housing-related reliefs, clearer guidelines for modern assets, and enhanced investment deductions. These measures aim to reduce tax burdens and promote economic growth
How can India get rich before it gets old?
McKinsey report highlights the imperative for India to create more jobs and grow at a faster pace
Budget Snapshot: Does household savings decline warrant a fiscal boost?
Rising debt and stagnant incomes have eroded household savings
Stock markets turn wobbly after holding steady for years, what lies ahead?
Markets had become adept at climbing walls of worry until they could not do it any further. The main questions are what changed that spooked investors and can things get better soon
The inflation genie is moving to the White House
The consumer price index suggests that the jump in expectations for price gains might not be over, and tariffs won’t help
Trump, Iran and the ‘Gaza ceasefire deal’
The ‘Gaza Ceasefire Deal’ is a mirror image of the May 2024 ‘Biden Plan’, which Israel rejected. What’s changed since then? For one, Israel has achieved all its critical military objectives. The imminent return of Donald Trump to the Oval Office has created its own dynamics which catalyzed Netanyahu to risk the ire of his right-wing coalition partners by accepting a deal. At the heart of it all is Iran, which will be the target of both the Trump Administration and Israel
Sugar stocks face an uphill year in 2025
Global prices have turned weak, domestic output has acquired a dull look and ethanol procurement has shifted focus to grain-based feedstock
Four ideas which will help Budget 2025 move the needle
An economic growth rate around 6.5 percent is inadequate to realise national goals. To unleash investor sentiments and business opportunities, a former Vice Chairman of Niti Aayog outlines four growth enhancing suggestions
How to contextualise India’s defence budget
Neither does India noticeably underspend on defence nor does the military run short of money for equipment purchase. Budgetary lapses too don’t take place. The structural issue facing policy makers is to shift the pattern of defence spending to 60 percent for equipment and 40 percent on revenue items. Currently, it’s the other way round
India's Arbitration Reforms: A comprehensive overhaul of dispute resolution
The Draft Arbitration and Conciliation (Amendment) Bill, 2024 introduces significant changes, including technological innovations, emergency arbitrators, appellate tribunals, and streamlined processes. However, concerns around institutional readiness, costs, and potential complexities need careful consideration for successful implementation
Martin Wolf: Trump’s threat to US liberal democracy
We must hope that the American people will not lightly abandon the enlightenment traditions of their country
Now is the perfect time for a dream Budget
The government’s continuous efforts to increase personal tax revenue have led to income tax collections from individuals rising from approximately ₹7 lakh crores two years ago to around ₹10.35 lakh crores last year, with a projected increase to ₹13 lakh crores for FY25. Now is the time to reduce income taxes
Budget Snapshot | A shot in the arm for affordable housing?
It is imperative to boost housing in rural areas through measures such as incentives for first time buyers or even on loans which people could avail to convert ‘kaccha’ homes into ‘pucca’ ones
