Madan Sabnavis
Madan Sabnavis
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articles by Madan Sabnavis

Business

Replacing NITI Aayog with Planning Commission will not serve any purpose, both add very little value

If one looks at the web site of the NITI Aayog and counts the number in the directory, it is well over 500 with various classes of employees including support staff.

Business

Rahul Gandhi's NYAY a test on fiscal prudence: Economy must be strong enough to bear pressure of Rs 3.6 lakh cr

If one is in principle okay with a universal basic income approach, then this scheme of minimum income guarantee is a modification of the same where the beneficiaries are not universal but a targeted section.

Business

Economists vs accountants debate: Vitriolic attack is not need of hour; time to work on credible data

By a curious coincidence, most of the contentious data series which present an opposite view of an otherwise somber picture have come at a pre-elections time.

Business

RBI to inject $5 bn into system: Move adds to the armoury of central bank, but will it ease liquidity constraints?

From the point of view of RBI, instead of buying GSecs from banks through three OMOs, it is able to inject Rs 35,000 crore at one shot at the end of the month

Business

IIP at 1.7%, CPI at 2.57% in January: Growth slowdown disappointing, but wasn't unexpected; MPC may have reason to rush for rate cut

Industrial growth is an important indicator of the real sector as most of the GDP growth we have seen so far is due to services where the government plays an important role

Business

State Bank of India links deposit, loan rates to repo rate: Other PSBs might follow; here's how the move will affect you

Savings account are supposed to be transient in nature as income gets transferred in periodically and is taken out to meet expenses by households.

Business

High interest rates: Lower deposits growth and not higher government borrowing is the problem

One of the reasons for high interest rates is the liquidity issue for which RBI is asked to intervene continuously by buying securities through OMO

Business

GDP growth rate is disappointing; RBI can lower rates further, but it is unlikely to push investment

When the growth numbers for 2016-17 and 2017-18 were scaled up under difficult times like demonetisation and GST, it was hard to reconcile the numbers with the underlying conditions in the market.

Business

EPF interest hike by 10 bps is significant: It gives savers higher returns but banks have to walk tightrope now

With the EPF announcing an increase in the rate by 10 bps is significant because the organization belongs to the government

Business

India's job crisis: Clue to employment is growth in the real sense, not just high GDP numbers

While headline numbers are definitely eye-catching, the unemployment ratios within the educated and skilled classes are alarming

Business

Retail inflation, IIP growth bring good news for govt, but there may not be immediate rate cuts

The lower inflation rate is even below what the RBI had projected and even today it looks like that the rate will not cross 3 percent this year.

Business

Digital mode of transactions will take some time to gain currency; domination of cash will persist

The number of Rs 20 lakh crore may look high, but if one looks at the buildup of cash in circulation over the years, the picture is actually not very shocking.

Business

RBI cuts repo by 25 bps to 6.25%: Shaktikanta Das and co at MPC will have more surprises in store; that's good news for all

The immediate impact of repo rate cut is on the market where GSec yields will moderate further as this is the most sensitive segment.

Business

Expecting only govt to push GDP growth would be antithesis to capital set-up, private sector should also spend on capex

The government appears to be the only entity driving the investment cycle and all data on investment gets linked to these efforts.

Business

Narendra Modi govt's Budget 2019 gives away a lot without taking anything; how's the math working then?

Even if the numbers do not add up in Narendra Modi's 'no pain, all gains' budget in February 2020, the disinvestment block is always there to help meet its 3.4 percent fiscal deficit target

Business

NSSO data confirms India's jobs crisis: Unemployment at 45-year high of 6.1%, way out is to make economy grow

The problem of unemployment is very serious and the only way to go ahead is to make the economy grow which happens gradually over time.

Business

Rahul Gandhi promises Universal Basic Income: No government in India can walk the talk on UBI; here's why

The idea of a universal basic income (UBI) is not really new and entered the Economic Survey in 2016-17.

Business

Budget 2019: Adhering to 3.3% target is not sacrosanct, fiscal management allows for enough flexibility to make numbers look agreeable

Fiscal deficit target is perceived as being the quickest indicator of fiscal discipline being pursued in the country.

Business

Budget 2019: Expect no big surprises, taxes may stay where they are as GST has put a block on most indirect taxes

By dragging the Budget announcement one month earlier to February, technically taking a call on the revised budgeted numbers makes less sense as while 10 months would have passed, information will be available for 9 months.

Business

GDP advance estimate of 7.2% growth number is noteworthy, but ascent towards 8% in 2019-20 looks a bit daunting

The 7.2% GDP growth number nonetheless is noteworthy as it will form the fulcrum for all futuristic scenarios that would go into the formulation of the Budget. That’s why it cannot be ignored.