ILANOMICS
India needs more private insurance companies. Govt must use Covid trigger to make this happen
More players could make the market more competitive as they would vie to offer accessible and low-cost insurance products.
India is walking on one leg because 1991 reforms missed banking & finance
Restrictions on banking led to limited capacity for new entrepreneurs to have access to resources. It allowed the old elite to continue dominating. This order must be shaken up now.
India needed a crisis to reform. It got one in 1991, thanks to Nehru & Indira’s Soviet model
India’s turn to a centrally planned economy began in the 1950s under PM Jawaharlal Nehru. But by 1991, the economy came to a grinding halt and faced a massive crisis.
Why Covid crisis must push credit rating firms to overhaul their methods and address bias
With agencies sticking to their methodology in these times, an emerging economy rating and outlook appear to be worse regardless of whether its government is fiscally prudent or not.
Why Modi govt has walked a tightrope with new Covid relief package
The structure of Finance Minister Nirmala Sitharaman’s latest stimulus package indicates that the government had an eye on the fiscal deficit while making it.
Why RBI’s hoarding of forex reserves over currency concerns will be counter-productive
RBI’s dollar reserves now stand at $608 billion, making India the fifth-largest reserve holding country in the world.
Inflation will moderate — 5 reasons why you should not worry too much about high prices
The May inflation figure may be somewhat inaccurate, with the rise appearing to be mainly due to higher global crude oil prices, commodity prices, and supply-side disruptions.
Indian family budgets are stretched, they’re borrowing more. Faster vaccination can fix this
RBI data shows a sharp increase in households borrowing against gold. Other indicators also show higher borrowing. More credit is fine, but vaccination needs priority.
GDP data shows India is now on recovery path. But faster vaccination is key
With a decline in new Covid cases and gradual unlocking, demand will mend in the next few months. Some weekly indicators are already signalling a pick-up in economic activity.
Modi govt needs a Covid cushion. RBI must transfer more of its surplus funds
The RBI has held back Rs 20,000 crore as provisions. This could have helped the Modi government further at a time of tremendous fiscal pressure.
