With the ripples of demonetisation and a poorly-designed GST spreading economic distress, voters will assess the promise of Narendra Modi’s ‘New India’ in due course.
Growth slowed to a three-year low of 5.7% in the quarter that ended in June, and finance minister Arun Jaitley has said that the government is looking for ways to speed it up.
Vinod Dua discusses if the bullet train project really is ‘free’ as Prime Minister Narendra Modi claims and also delves into the current state of the Indian economy.
Ministers were shuttled in and out, supposedly on the basis of performance. But who will take responsibility for the structural slowing down of India’s economy, poor employment generation and agriculture distress?
Obese banks are generally unhealthy for the economy. But the government is happily fattening banks thinking they are becoming “stronger” in the process.
The price of demonetisation’s “success” is now clear – slowing economic growth. What makes matters worse is that India has made very little headway in solving its twin balance sheet problem.
Former RBI head says he warned of the potential pitfalls if preparation was not adequate, concludes that demonetisation has not been an “economic success”.
Analysts point out that slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST.
The RBI’s data, and the government’s new narrative, is indicative of how badly demonetisation failed. Worse still, more important goals such as cracking down on benami property and reforming political funding are being gone about in a half-baked manner.
The success of Rajiv Kumar’s tenure, who has moved from the left of the ideological spectrum to the right, will depend whether he succeeds in moving the Aayog away from being a government mouthpiece and creating a shared narrative around job creation.
Ambiguous rules under the new, multi-rate sales tax that went into effect on July 1 have left firms confused on how to price their products.
While this is likely a side-effect of demonetisation, more research is needed to unpack how India’s unemployment rate fell during the period January- April 2017.
Contrary to what a recent article has claimed, the increase in FDI to India has, in fact, been in line with the historical trend and the previous UPA government is the one that deserves credit for decontrolling diesel prices.
The government is repeatedly acting on the assumption that the shocks it is applying to the economy are transitory and that the formal sector is immune to shocks experienced by the informal sector.
Data reveals that a substantial portion of India’s FDI inflows comes from foreign investors claiming bigger stakes in Indian start-ups and brownfield ventures across various sectors. What does this mean for job creation?
Finance ministry officials were scheduled to meet with all six members of the monetary policy committee before its policy statement today, in a move that had raised worries over the MPC’s independence.
The confused narrative surrounding post-demonetisation growth consequences shows that we simply don’t have enough hard data on the non-agriculture, unorganised portion of India’s economy.
Data on Wednesday showed that India’s economy suffered a growth slowdown in the quarter to March, to 6.1%, raising alarm bells.
With the BJP winning in assembly polls on divisive and emotive issues, the government seems convinced all is well with the economy.
The Modi government’s failure on crucial development fronts such as farmer incomes and job creation may hold the key in understanding the rapid shift in narrative from human development to nationalism.
Indian IT firms are witnessing their slowest growth in a decade, while global firms are shifting their budgets from traditional IT services to newer areas such as digital and cloud.
Will the Modi government’s digital push help it curb “excess cash” and print fewer notes than what was extinguished through demonetisation?
The single-minded focus on GDP growth ignores the low income and, consequently, poor demand potential of the bulk of India’s population, downplaying the ill effects of poor policymaking.
While the bank has denied rumours of a potential merger, what issues need to be considered? The bank’s operations and the state of its loans needs to be minutely examined.
While an important measurement, GDP is far from adequate to judge a country’s economy and socio-economic conditions.
Budget 2017-18: With Focus on Rural Spending and Income Tax Cuts, Jaitley Ends Speech Sans Bombshells
The Wire’s coverage of the presentations of the Union Budget 2017-18.
The survey, which sets the scene for finance minister Arun Jaitley’s fourth annual budget on Wednesday, forecast that Asia’s third-largest economy should steady after the November demonetisation.
After demonetisation, the NDA government needs to get its affairs in order: starting from reviving private investment to delivering on social programmes.
Over the last three decades, under China’s infrastructure-led public investment boom, total aggregate debt has grown from $2.1 trillion to $28.2 trillion.
If India is to become truly competitive, the government must improve efficiency and transparency of public administration among other factors.
Unlike economic parameters like the gross domestic product, can happiness be truly measured?
Many of the MENA countries have the needed pre-conditions to accelerate future economic growth – natural and human resources, strong state institutions, low inequality – provided that ethnic, religious and sectarian conflicts end and peace prevails.
The application of economics should be seen as a craft, instead of a purely methodological process with static assumptions.
Jaitley’s effort included many significant policy plans but had little to offer on reviving economic growth. Unless interest rates are lowered sharply, there is no possibility of recovery.
The new method of calculating GDP is debatable given that GDP numbers seem in conflict with other economic indicators. Amid the confusion, economists are devising new ways to gauge growth.
Many African countries, including the DRC, have for years maximised and concentrated their economic activities, at least at the macro level, in only one sector.
The hidden costs of fossil fuel use, together with their subsidies, easily overshadow the health budgets of governments worldwide