Synopsis: Permanency of large foreign firms operating for decades is slowly on the decline. That is why, domestic capital formation and private investments should step in. Introduction The most recent labour statistics, for August 2021, released by the Centre for Monitoring Indian Economy (CMIE) shows that the unemployment rate has increased from around 7% in… Continue reading When global firms disengage, employment suffers
Author: Ram Manohar
Why India must strengthen its public sector
Synopsis: The sale of giants like BPCL, BEML or SCI would undermine India’s “Atmanirbhar” goal. Privatisation compromises India’s sovereignty and economic freedom, threatening its energy security and strategic postion. Introduction Today, 28% of the world’s largest and most powerful economic entities are state-owned, dominated largely by the Chinese State-Owned Enterprises (SOEs). China today has 124… Continue reading Why India must strengthen its public sector
Sarkar’s Reform Mode: On various economic reforms by the govt.
What is the news? In the last few months, the government has become more aggressive towards reform as evidenced by several recent policy changes. Introduction The post-Covid, or rather the living-with endemic-Covid world offers major opportunities for India to accelerate its economic growth momentum again. This economic growth alone will get us out of the… Continue reading Sarkar’s Reform Mode: On various economic reforms by the govt.
India’s consumer map is rapidly being redrawn by major trends
Synopsis: Companies must adapt to a market of rising incomes, digital innovations, new consumers and altered consumption curves. Introduction Pandemic shocks and aftershocks make the immediate economic outlook more uncertain. However, prospects for India’s consumption remain robust as incomes are projected to rise and millions more will experience growth in their spending power. Which factors… Continue reading India’s consumer map is rapidly being redrawn by major trends
Human resources & regulatory autonomy
Synopsis: Statutory regulatory authorities need autonomy in staffing their organisations with specialists who have integrity and knowledge. Introduction Recently, the chairman of the National Financial Reporting Authority (NFRA) called for a “standalone legislation”. He stated that, in the interest of functional, financial and administrative autonomy of the NFRA, there is a compelling need for a… Continue reading Human resources & regulatory autonomy
Managing risks of a green economy
Synopsis: A rapid transition to renewable energy, which is necessary, will disrupt a number of businesses. Introduction Climate change will affect lives and livelihoods across the globe with some countries getting disproportionately impacted. According to a recent report by the Swiss Re Institute, climate change could reduce global gross domestic product by 18% by 2050… Continue reading Managing risks of a green economy
Regaining fiscal balance
Synopsis: The advance tax numbers suggest growth in revenue collection continues to remain strong. However, Central government finances would need careful management. Introduction In the current financial year, the fiscal position has improved significantly and the recovery in revenue collection has surprised many. By July-end, the government collected revenue worth over 37% of its Budget… Continue reading Regaining fiscal balance
A flawed calculation of inflation
Synopsis: The current official inflation rate does not correctly measure price rise and it needs modification. Introduction Inflation for the last four months has been worryingly high. Wholesale price index (WPI) has been above 10% and consumer price index (CPI) crossed the 6% mark. Does the official data capture the real picture? Data issues: Unlock… Continue reading A flawed calculation of inflation
How new global tax rules may reshape India?
Synopsis: The conventional global tax system is changing, with several countries, including India, imposing a digital service tax and participating in a new global initiative to modernize tax rules. Why there’s a need for new global tax framework? The new tax framework seeks to tackle digital economy firms in particular since they do not easily… Continue reading How new global tax rules may reshape India?
Let’s rework incentive structures to boost IBC recovery
Synopsis: IBC is a landmark reform and its efficiency can be further enhanced by adopting incentive structure. Introduction Despite value erosion at disbursal due to poor credit discipline, the IBC has yielded impressive recoveries so far. However, the Code has also been criticized on several other grounds, many of which are questionable. Why IBC ‘s… Continue reading Let’s rework incentive structures to boost IBC recovery
