News: The article suggests a different way of designing a minimum support price (MSP) to transform Indian agriculture. Contents1 How the current price stabilization policy for food grains has evolved?2 What are the consequences of this price stabilization policy?3 How MSP should be redesigned?4 Why India needs a decentralized mechanism of procurement?5 What is the… Continue reading An MSP scheme to transform Indian agriculture
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Consolidate clearances-4 steps for effective green clearances
News: Environmental Clearance to various developmental projects has been at the core of Environment- development debate. However both Environment and development are not the two different ends of a spectrum and can definitely coexist if some changes are made to our green clearance policy. What will make the system more effective? There is a… Continue reading Consolidate clearances-4 steps for effective green clearances
A growth focused monetary policy
News: To maintain a desired growth rate, Reserve Bank has kept an accommodative policy stance despite the new risks from elevated crude oil prices and the possibility of aggressive policy measures by the US Federal Reserve. Contents1 What is accommodative policy stance and its impact? 2 What is the policy adopted by other central banks… Continue reading A growth focused monetary policy
A change of course on privatisation
News: Recently released India’s Budget 22-23 has signalled that the government will proceed cautiously on privatisation. The article says that the retreat on privatisation is a pragmatic economic policy. Contents1 Why the Budget has changed the course of privatisation?2 What does the government’s decision to de-emphasise privatisation reflect?3 Why executing privatisation is a challenge?4 What… Continue reading A change of course on privatisation
Income tax on our rich should’ve been rejigged
News: This article discusses the view of former Reserve Bank of India governor C. Rangarajan on taxation. The article says tax rules should be made easier for better tax collections. India needs direct tax reforms because tax relief is not enough. How the government missed the opportunity to simplify the tax rate? Pandemic has increased… Continue reading Income tax on our rich should’ve been rejigged
It’s time to take a relook at privatisation
News: This article discusses that privatization and the short-term gain associated with it should not overshadow the long-term interest. Hence, there is need to take a relook at privatization. Why privatization is being considered as panacea? India’s fiscal deficit (for the Centre) in FY22 is expected to be at 6.8% of the GDP and with… Continue reading It’s time to take a relook at privatisation
Budget 2022: Some musings
News: Recently, union budget 2022-23 has been presented. This article analyses the positives of the budget and suggest way forward to deal with the challenges. Contents1 What are the challenges currently faced by the economy?2 What are the positives of Budget 2022-23?3 Which issues are left unaddressed?4 What are the adverse consequences of a high… Continue reading Budget 2022: Some musings
Step up agri-spending, boost farm incomes
News: The present budget (2022-23) has increased allocation towards the agricultural sector by 4.4%. What is the issue with the current budgetary allocation for agriculture? First, the current rate of increase in budget is lower than the current inflation rate of 5.5%-6%. According to the Food and Agriculture Organization (FAO) report, the government expenditure on… Continue reading Step up agri-spending, boost farm incomes
Reducing edible oil imports
News: Government has extended the stockholding curbs on oilseeds and edible oils. This may prove to be harmful for India’s vision of boosting the output of oilseeds to reduce dependence on imports for edible oils. Why is this step harmful for the economy’s health? Wrong signal to market: Economic Survey has also cautioned against such knee-jerk… Continue reading Reducing edible oil imports
RBI shouldn’t rush the launch of India’s official digital rupee
News: Rushing the implementation of a digital rupee is fraught with unnecessary risks. Contents1 What are the advantages and associated issues of a CBDC?2 What is the global situation wrt a digital currency?3 Why has India set an early deadline to launch a CBDC?4 What is the way forward? What are the advantages and associated… Continue reading RBI shouldn’t rush the launch of India’s official digital rupee
