Categories : Blog (249)

Back to schools - 1

Earlier this week we had written about the need for a paradigm shift in the education system in the country. As promised, we would like to share our thoughts on this in some detail. Billions of reams have been written about the deficiencies in the...

Last week, Stephen Curry signed a new five-year contract with the Golden State Warriors, the leading American basketball team. Curry, the star player in American basketball in recent years, will take home $201 mln during the course of his contract...

United States ambassador to the UN Nikki Haley had strong words for North Korea on Wednesday. She said the latest missile test was a sharp escalation and that the US will use its military if it must and could go its own path.   Markets...

Our take on GST

It's been four days since the much talked about, debated, praised, cursed, cheered, resented anticipated and feared tax reform - Goods and Services Tax (GST) has been implemented in the country. There are reports from various cities that some...

Dollar Bounces to Start H2

The beleaguered US dollar is enjoying a respite from the selling pressure that pushed it lower against all the major currencies in the first six months of 2017.   A measure of the dollar on a trade-weighted basis fell about 5% in the...

As we highlighted in one of our earlier posts the notion of "farm loan" is materially different from "farmers' debt" in today's context.   The rise in aspirational consumption; distortion of social customs (especially marriage, death, birth)...

The farm loan waivers announced by state governments in recent weeks may have poured cold water on the Centre's hopes of an upgrade by global rating agencies. In April, the newly-elected BJP government in Uttar Pradesh announced waiver of...

We interacted with few primary dealers in bond markets across various brokerage houses over email and phone to discuss the likely impact of GST on Government finances.   Below are the responses to the questions posed by us:   Ques....

Coffee Conversations - Impact of GST

We interacted with an Economist at National Institute of Public Finance, Delhi (name withheld on request) to discuss impact of GST on CPI, IIP & GDP in the coming months.   Below are the responses to the questions posed by...

Farm sector reforms

To bring any meaningful improvement in the dismal condition of India's farming community, a comprehensive rural development effort is needed. Any piecemeal solution like occasional loan waiver shall have almost no sustainable impact.   The...

Coffee Conversations on GST

We interacted with a senior consultant of KPMG (name withheld on request) and discuss the hurdles in implementation of GST across various sectors.   Below are the Key points from our conversation with them:   Ques. Do you expect...

It has been a problem of plenty for the Indian farmers for a while now, and the new crop year may not bring any respite. For the crop year ending this month, India's food grain and horticulture output are estimated at record highs - 273.38 mln tn...

Time to do it is Now

Prime Minister Modi has proudly promised Indian Diaspora in US that his government will strive to make India a developed country like US. In past also many political leaders have aspired to make India like China. One former chief minister of...

The minutes of the Jun 6-7 meeting of the RBI's MPC have been interpreted as tipping the scales in favour of a reduction in repo rate, possibly as early as August. The acknowledgment of the fall in headline retail inflation was indeed strong, with...

Sometimes it only takes a push

In central banking, it's not always the words, it's who says them. Yellen has been saying for months that the slowdown in US inflation is only temporary but when Draghi said mainly temporary factors were weighing on inflation it immediately...

Financial markets had hoped the minutes of the latest meeting of the ​RBI's ​MPC would be a reaffirmation that the rate-setting panel has softened its tone. The minutes were closely scanned for signs if a rate cut was in the offing or a transition...

To understand the politics of farm loan waiver, it is important to first understand the economics of farming in India:   (a)   As per 2013 NSSO survey about 83% (80% in 2003) of the total farming households in India are either landless...

The summer doldrums begin early

The US dollar was little changed against most of the major currencies. Bond yields are mostly one-two basis points lower, and equity markets are mixed but with a downside bias. Oil prices slump more than 2% on Tuesday and again on...

Farm loan vs. farmers' debt

Farm loan waiver has been a contentious issues in India's socio-economic milieu for past many decades. It would not be entirely wrong to say that most governments and political parties have used this as a tool to exploit voters' sentiments rather...

Oil trip on downside

Especially worrisome about the $1.00 fall in WTI on Wednesday to $42.50 was how it got there. The news was constructive and technical support was in place, yet crude hit the lowest since August.   First, OPEC tried a bit of...

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