India’s macroeconomic stability is impressive compared to many of its peers. Pandemic spending wasn’t excessive. The fiscal deficit has been steadily shrinking as a proportion of GDP. The rupee has been remarkably stable. And “core” inflation, which excludes food and fuel prices, has eased to 3.3% year-on-year. But it is still government actions that are pushing growth up or down, rather than the choices made by India’s private sector
The payment of interest and the instalments of the loan is indeed an expenditure, but it is an expenditure which is converted into an asset, which is a saving, the former finance minister argued.
The RBI may go for a 25 basis points rate hike in September and possibly another one before the end of this year.
As the Budget announcement for 2021-22 draws closer, fear-filled discussions in the Indian media over deficits and debt numbers will be heard
A critique of mainstream macroeconomics through the Japanese case should not be taken to imply that MMT advocates the same policy prescription for all situations; such naïve logic is a common weapon that macroeconomists often use against MMT
Perhaps the only way to increase business profits at this juncture is to reduce government savings i.e. the government should run a deficit which is greater than the savings of the non-business sector.
Making long-term economic forecasts will not cease, but could nowcasting real time macroeconomic aggregates be the new norm?
This despite improvement in asset quality, with a decline in the number of non-performing assets
While brokerages such as Ambit and Macquarie have reduced their gross domestic product (GDP) estimates, chief economic advisor Arvind Subramanian says it is too early to start revising GDP growth numbers downwards.
In the last nine months, the government has taken many right steps to improve the economy, says Shiv Puri, founder and MD of TVF Capital Advisors. It now needs to focus especially on the infrastructure sector in the Budget, he adds.
The 10-year bond yield at 7.85 percent factors in the positives, says Manish Wadhawan, MD & HD-Interest Rates, HSBC.
With a tell-tale sign of a decline in rural consumption, companies like HUL and Dabur will face a bumpy ride ahead, says Sandip Sabharwal who offers Investment Advisory through asksandipsabharwal.com.