The trouble with containing China

Synopsis: This article illustrates why it is difficult to contain China Introduction China is mounting a robust challenge with its “wolf-warrior” diplomacy and the vastly ambitious One Belt One Road initiative and String of Pearls. To counter aggressive rising China, the new alliance (AUKUS) between Australia, the UK and the US, is formed. However, according… Continue reading The trouble with containing China

The Unicorn Stampede

Synopsis: It would be wise for investors to take a deep breath before investing in India to make sure that the blessing of unicorns does not end up saddling India with a curse. Introduction Unicorns are Start-ups with a billion dollar-plus valuations. There is Unicorn stampede in India and on the other hand there is… Continue reading The Unicorn Stampede

When global firms disengage, employment suffers

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

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