Madan Sabnavis
Madan Sabnavis
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articles by Madan Sabnavis

Business

Nationalisation of banks: Spread of public sector banks paved way for balanced economic development, large-scale job creation

The nationalisation of banks was probably one of the boldest steps taken by the government in 1969 as it involved bringing virtually the entire financial system under the public sector.

Business

Union Budget 2019: Nirmala Sitharaman presents ‘no-change’ Budget; one mustn't read too much into numbers

The Budget speech had spoken of what all has been given in the interim Budget and not made any concession here. Therefore, there is nothing specific for households here.

Business

Economic Survey 2019 presents good overview, but should not be read as precursor to Sitharaman's maiden Budget

The Economic Survey also takes a view that the NPA issue is behind us and hence banks can now lend.

Business

RBI Financial Stability Report: There is good news and bad news, but where is the plan of action?

The Financial Stability Report analyses threadbare the overall state of the various segments as well as highlights the risk-related issues

Business

Arvind Subramanian's claim on overestimation of GDP is exotic research confined to shelf; CSO should focus on improving robustness of data

It was expected that the EAC-PM would rebut the conclusions drawn by the former Chief Economic Adviser Arvind Subramanian

Business

Can’t expect anything radical this time from Modi 2.0, govt's entire focus will be on matching all numbers

The prime minister has already increased the cash transfer scheme allocation to Rs 87,000 cr as it will include more farmers now.

Business

Inflation numbers well on track, but what Budget offers to revive industrial growth this year will be interesting to watch

Core inflation is the serious part that can be affected by monetary policy action and hence the direction becomes critical.

Business

Former CEA Arvind Subramanian's claim on GDP growth overestimation is a valid view, but here's the catch

The former CEA has come up with his calculation that shows that there has been an overstatement of GDP based on limited variables that he has used

Business

RBI issues new NPA recognition norms: The guidelines put onus on creditors to take call on resolution plan, but will it work?

RBI guidelines will definitely bring in more transparency in terms of letting all the lenders know that there is a problem and that they would also have to work towards a solution through the RP

Business

RBI monetary policy: Changes in rates may not spur investment; govt needs to ascertain causes of stagnation

Further, fuel inflation has been increasing and the assumption made by the RBI here is that oil prices are unlikely to increase in the next couple of months.

Business

IIP contracts after 21-months gap: What does disappointing factory output means for economy

The IIP growth numbers for March 2019 and FY19 are more than disappointing. This information comes at a time when there are not too many encouraging signals at the ground level

Business

NSSO report: GDP data was bound to be questioned due to methodological issues; it's time CSO redefines sample

As other variables like employment, tax collections etc. are linked with GDP numbers, the data set will always be examined more than closely for faults

Business

Drop in income tax e-filers: Gains accrued from GST, demonetisation not enough, need to increase employment opportunities

Demonetisation and GST were two schemes that were brought in by the government ostensibly to bring out black money and get everyone into the tax fold.

Business

US ends waiver on Iran oil imports: India must now scout for cheaper oil from other sources to avoid a crisis

Higher oil prices would cause reworking of our economic indicators and policy. Higher prices will immediately impact our trade deficit as the value of imports increases.

Business

Monsoon forecast: Will IMD’s prediction of near normal rainfall be good enough to instil optimism in country?

We have seen in the past that delayed monsoon has implications for the crops as sowing is dependent on the arrival of the rains.

Business

BJP manifesto: Continuity for sure, but some goals are aspirational; where will the money come from?

The BJP manifesto promises continuity which is assuring as there will be more of the same with certain toppings directed to the poorer sections.

Business

Reserve Bank cuts repo by 25 bps: MPC's rate cut bonanza isn't over yet; expect more moves to spur the economy

Lowering of the repo rate by the RBI has to get transmitted and for this to happen, deposit rates should be lowered so that the MCLR comes down

Politics

Congress election manifesto: Several poll promises will meet implementation hurdles; strict follow-up action key to success of schemes

The manifesto also talks about more public sector bank mergers which will depend a lot on how the Bank of Baroda-Dena-Vijaya Bank alliance works out as there will be several lessons to be learnt.