Economics & Finance

India’s bad loans conundrum

March 24th, 2016|Categories: Deccan Chronicle, Newspaper, The Asian Age|Tags: |

India’s commanding heights are being brought down by its own laxity. With the rate cut underway in savings schemes, India’s fiscal policy is beginning to come to grips with its bad loans conundrum. India’s economy remains bedevilled by bad debt-laden public sector banks (PSBs) — unable to recoup them given the economy’s state, and unable

Budget needs to be aligned towards bolstering long-term rural credit policy

January 19th, 2016|Categories: Newspaper, The Economic Times|Tags: |

While the last decade’s fiscal Budgets were rhetorically pronounced as pro-poor, the Asian Development Bank’s social protection index (SPI) has ranked India 23rd in social protection across Asia-Pacific countries, with its spending at 1.7% of GDP. China, ranked 12th, spent 5.4% of its GDP on such measures. Even Mongolia had a better figure of 9.6%

Subsidies should be tightly targeted, transparently administered

December 18th, 2015|Categories: Hindustan Times, Newspaper|Tags: |

While spending cuts and lower oil prices have reduced India’s deficit, our near-term outlook remains clouded. India has set aside Rs 4,55,145 crore for payment of interest on public debt in 2015 (non-plan expenditure, central government budget 2015), including those paid for special securities issued to oil-marketing companies, fertiliser companies, FCI etc. Outlays for subsidies

To protect itself from scams, India desperately needs to upgrade its consumer protection laws

July 14th, 2015|Categories: Newspaper, The Economic Times|Tags: |

Emu farming in Tamil Nadu in 2013 was always a Ponzi scheme. First introduced by Susi Emu Farms, the scheme promised a 100% return, along with the deposit within two years, for an initial deposit of Rs 1.5 lakh for rearing emus. VIP schemes offered better returns, and regular annuity payments. Soon, hundreds of firms

Small can be big

May 27th, 2015|Categories: Deccan Chronicle, Newspaper, The Asian Age|Tags: |

India harbours tenacious entrepreneurs. Over 46 million micro, small and medium enterprises (MSMEs), employing over 106 million people, account for 45 per cent of India’s industrial output and over 40 per cent of its exports. Occupying a vast diversity of geographies, they employ India’s entrepreneurial talent while flourishing in sectors with little or too much

Some Macro Changes For Microfinance

May 4th, 2015|Categories: Magazine, Outlook|Tags: |

The usurious moneylender was well-known, even in colonial times. “The ryot cannot cultivate without borrowing because his crop goes largely to the long-term creditor,” says the Central Banking Enquiry Committee Report of 1929. India’s poor still remain vulnerable: 51.4 per cent of all farmers are excluded from both formal and informal sources of finance. Thirty-one

UPA’s Failed Socialist Experiment

February 5th, 2015|Categories: Newspaper, The Times of India|Tags: |

We possess an insidious subsidy culture. If an election is coming, a quick word will raise the LPG cylinder cap or lower CNG prices, ignoring gaping fiscal deficits. In the idealised public sector era, subsidies were a symbol of our commitment to bring about egalitarian growth, protecting our infant industries. Now, in the last decade,

Talking shop at both sides of the aisle

December 19th, 2014|Categories: Deccan Chronicle, Newspaper, The Asian Age|Tags: |

India’s retail sector is a potpourri of formats. Local kirana stores offer credit, home delivery, fresh food and unpackaged foodgrains, all the while maintaining personal relationships with customers. Increasingly, these are being complemented by and, in some cases, replaced by organised big-box retail chains. And, finally, there is the booming e-commerce sector that threatens to

Interim Budget 2014: FM has written the obituary on a decade of fiscal mismanagement

February 18th, 2014|Categories: Newspaper, The Economic Times|Tags: |

The "farewell Budget" was revealed on Monday, an elegy to a decade of populist patronage. The finance minister expounded on his efforts to conduct fiscal consolidation, ensure price stability and revive growth. He also wrote the obituary on a decade of fiscal mismanagement. India is a complicated economy, affected by an idiosyncratic logistical system and

Turning the black money tide

January 20th, 2014|Categories: Newspaper, The Times of India|Tags: |

Voltaire wrote “If you see a Swiss banker jumping out of a window, follow him, there is sure to be a profit in it”. Following this train of thought India is seen to be ruined by a cartel of Swiss bankers, terrorists and corrupt industrialists. Unlimited black money is apparently out there, the “hidden hand”