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RBI remains a Cassandra, and the rate cut won’t help
The lowering of interest rates by the Reserve Bank of India (RBI) was evidently done to assuage the markets which had already factored in a 25 basis points cut (one quarter of one percent) in the repo rate. There were some ambitious expectations too that the quantum would be double #D. Subbarao #Monetary Policy 2013-13 #PolicyWatch #RBI Repo Rate
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Normal monsoon? Why it means almost nothing now
Does the news of a normal monsoon for the year in April make any sense? The markets surely will be enthused by this momentary good news, but once it is absorbed, it will be business as usual. The fact is the concept of a normal monsoon is a misnomer to #Business #Economy #Food Production #IMD #Monsoon forecast
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When it comes to leading BJP the cap only fits Modi
The name Narendra Modi evokes extreme reactions from the media if not the public. You either admire him or dislike him. This makes him an easy candidate for Prime Minister, which is why the BJP should project him as its leader. More importantly, strategically, it is the best option even #BJP leader #Elections 2014 #In My Opinion #Narendra Modi
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Why we do indeed need the Food Security Bill
One of the main functions of a responsible government is to address the issue of distribution by introducing and implementing schemes that enhance social welfare. Therefore, governments have to spend money where others would not normally do (the concept of corporate social responsibility may be the exception) because it does #Food security #NREGA
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Why Union Budget 2013 growth numbers look a bit shaky
Rating a budget is always an interesting exercise, because any evaluation is based on the presupposed expectations that one had. The attempt here is to take things at face value and see if the budget has addressed the issues appropriately. First, let us look at the growth assumption in Budget 2013-14. #Budget 2013 #fiscal deficit #P. Chidambaram
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Clear message from Economic Survey: Budget 2013 will be cautious
The Economic Survey is one more official document on the state of the economy and is timed just before the budget. It supersedes the quarterly reviews of the Reserve Bank of India (RBI) and the prognosis of the Prime Minister’s Economic Advisory Council (PMEAC), and hence is the most contemporary #Budget2013 #Economic Survey #Economic Survey 2012-13 #P. Chidambaram
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Forget WPI: We are in a high food inflation economy
Should we be happy that the wholesale price (WPI) inflation number has come down to 6.6 percent in January 2013? If you are from the government, you would see it as a positive sign that inflation has finally come below the 7 percent mark – the lowest in three years! The #CPI #food prices #Infllation #Price Watch #WPI
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Why CAD is bad: Subbarao spots a new thing to fret about
For the current fiscal year, our obsession has been with growth, interest rates, fiscal deficit and movement on policy and reforms. Economists and policymakers have fiddled around with numbers linking each of these variables with one another and justified either reason for action or inaction. Even the Reserve Bank of #Current Account Deficit #forex reserves #Monetary policy #RBI
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Why India remains a functioning anarchy even now
Almost half a century back, John Kenneth Galbraith, the US ambassador to India and a renowned economist, had called India a "functioning anarchy", where the implication was that the country did well despite the government not doing much. A lot has happened since then, with India going through a series of #Aam Admi Party #Congress #In My Opinion #India #UPA
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CAD: We’re up the creek; only foreigners can lend us a paddle
The present mood in economic circles is one of cautious optimism. The feeling is that things can only improve from here as conditions cannot get worse. Growth is down and inflation sticky at a high level. Industry is at best crawling and there is little movement in terms of investment. #CAD #ExternalCrisis #FDI #FIIs