Financial Sector & Development
Moratorium on New Subsidies to Garner Resources for Public Spending on...
Based on analysis of data from about 100 economies, Shishir Gupta argues that in India, the lack of sufficient public spending constrains healthcare...
Mitigate the Impact of Global Shocks on India’s Financial Sector...
To safeguard a financial system exposed to major vulnerabilities, India must bolster regulatory frameworks, crisis management and cybersecurity, and...
Pinning Hopes on MDBs...
MDBs can only partly finance climate needs of low- and middle-income countries....
Managing Inflation: RBI’s MPC has Faced External Challenges Since...
It is important to ensure that headline inflation is aligned with the target, which will further enhance the credibility of the FIT framework....
Democratizing E-Commerce: The Role and Challenges of ONDC...
ONDC is a pioneer in building and democratising open network commerce at population scale. It is expected to bring in synergies across various parties...
Finetuning Industrial Nodes: Intent Correct, Design Requires Refinement...
The decision to develop select cities as industrial hubs is sound, but revisiting the choice of locations could make it a game-changer....
Root of C-D Mismatch: Major Banks Aren’t Competing for Savings...
The savings bank deposit interest rate was the last one to be deregulated by the RBI after all other interest rates were deregulated....
Angry, Young Men...
A snapshot preview of Bangladesh’s growth track shows it bucked the slowing world economy for almost one-and-half decades till 2019, growing 6.4% a...
Outrage Over Reform in Capital Gains Tax is Overblown. Here’s Why...
Even after the recent changes, India's capital gains tax regime remains relatively moderate compared to other nations...
The Likely Trends...
The most vocal segments have unequivocally expressed their views at different media forums and through direct engagement in the form of customary...
Two Decades Of Union Govt Finances in 6 Charts...
Through an analysis of expenditure, revenue and borrowing of the Union government, we examine the strategies used to maintain financial stability amid...
Will Investment Optimism Fade?...
Renu Kohli examines the factors that create uncertainty about private investment amid slowing consumer demand, inflation, and uncertain global growth....
Modest Assessment...
A continuation of past trends — namely, ageing populations and slowing investments and productivity growth together lead to the anticipated slowdown...
Developing World Must Raise Own Climate Finance...
Developed countries and MDBs can raise just a third of the requirement. Carbon pricing and ETS will have to play a bigger role....
Beyond PLI Targets...
A comprehensive strategy is needed to propel India’s manufacturing capabilities....
Consumption Trends and Monetary Policy...
The falling share of food in households’ spending will help, given food inflation also drives inflation expectations....
Behind the rise in Rural Consumption Spending...
The National Rural Livelihood Mission, better targeting and delivering of benefits, wider reach of digital infrastructure have contributed to the...
Interview | Can private capex offset govt spend curbs in FY25?...
Shishir Gupta provides insights into the RBI urging the private sector to take over the responsibility of driving capex. Could it slow down the...
On a Sobering Note...
The International Monetary Fund’s deep dive into global trade fragmentation and restrictiveness shows lasting consequences of raised costs, feeding...
Why are We Staring at a Global Debt Problem Yet Again?...
Hidden debt is a major problem across the world that the G20 Data Gaps Initiative needs to resolve, writes Anoop Singh....
Compensating for the Fiscal Loss in India’s Energy Transition...
The study argues for the need to consider multiple factors, including efficiency, equity, sustainability, institutional considerations, and the...
Non-performing Assets of Indian Banking: An Evolutionary Journey...
This paper narrates the story of the evolutionary journey of non-performing assets (NPA) in the Indian banking sector....
Then and Now...
CSEP Senior Fellow Renu Kohli provides a comparative illustration of the domestic context of the Indian economy then and now to identify critical...
Need a More Effective Role: Re-Channelise these through MDBs, and Rethink...
There is a need to tap into the potential of Special Drawing Right (SDR), especially at a time when the global community is struggling to mobilise...
Quota Reform is an Opportunity for the IMF to Restore its Legitimacy...
As the IMF strives to complete the 16th General Review and works towards some agreement on quota realignment as part of the 17th General Review, the...
Report card...
Despite a pandemic, war, higher cost of living and interest rates, economic activity has not stalled or fallen into recession even as inflation...
How to Reverse the Longest Downturn in Corporate Capex...
Corporate investment, which plays a critical role in driving economic growth, has been in a slump in India for more than a decade. This op-ed analyses...
Mind the Financing Gap...
The total flow of financial resources to the commercial sector, which provides a good grip on the strength of the real economy, is compiled by the...
How to Fix Holes in the Financial Safety Net...
In absence of significant governance reform, effectiveness of global financial safety institutions is eroding. India is better off relying, instead,...
Another Step Back...
India’s objective has been to narrow the trade deficit with China by manufacturing at home. The tariff-raising, safeguard duties have explicitly and...
Emerging Inflation Dynamics: The Past Could be a Poor Guide for Future...
In food-price management, factors that could hinder the government’s efforts seem to have been ignored, writes Renu Kohli....
Commodity Prices and the Twin Balance Sheet Crisis...
Abhishek Kumar and Divya Srinivasan use data from India (the second-largest steel producer in the world) to estimate the effect of large movements in...
Finance Ministers and their Balancing Acts...
Laveesh Bhandari reviews AK Bhattacharya's book "India's Finance Ministers: From Independence to Emergency (1947-1977)"....
Tax Buoyancy: Too Noisy for Signals...
Renu Kohli's Discussion Note discusses three significant reasons why the observed tax buoyancy in the recovery year, FY23, must be interpreted with...
Asia Needs to Focus on Productivity to Lead Global Growth...
Sustained productivity growth would be better driven by technological capital deepening with related organisational changes and increased competition...
The UK a Tax Haven?...
Is the UK providing refuge to India's absconding financial scamsters? Jaimini Bhagwati examines.
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Leaders of Tomorrow: Expert Panelists Predict India’s Economic...
The discussion touched on many important aspects of India's growth trajectory, and the panelists agreed that India is poised for significant growth in...
Our Budget Speeches Capture the Evolution of Government Policy...
From ‘an idea whose time has come’ to ‘Digital India’, the words used in Budget speeches have set the theme for India’s economic emergence,...
Interview | Crypto Will Die a Natural Death as Investors Turn to Other...
Crypto grew because we had near zero interest rates in developed countries for an extended period so people were searching for higher returns, says...
Interview | More Financial Institutions May Fail Globally, But No Direct...
As interest rates keep increasing in the developed economies there could be some reversal of capital flows, and consequent impact on the exchange rate...
Interview | Inflation-Targeting Framework has Clouded Thinking in Central...
Though there are multiple instruments to tackle inflation, every time there is a spike, the market expects monetary policy action, says Rakesh Mohan....
The G20 must help create a global financial safety net...
The challenge is to develop a carefully sequenced agenda for the next few years until political conditions allow a broader reform of the international...
It’s Financial Sector Greed Again...
US and European regulators ignored basic risk management. But why do regulators allow financial sector firms to gamble with depositors' money?...
Interview | Will RBI Raise Rates Amid Global Banking Crisis? | Rakesh...
CNBC TV18 News interview of Rakesh Mohan on whether the Reserve Bank of India (RBI) will raise the repo rates amid the global banking crisis. ...
Bad debts of 2011-2016 could partly be pinned on a metal price crash...
A majority of the firms responsible for defaulted loans between 2017-2020 constituted iron and steel businesses. ...
How India Budgets to Become a Leading Power...
Constantino Xavier and Riya Sinha comment on the MEA Budget and how India can become a leading power in an increasingly uncertain, competitive and...
Pressure on the Rupee Recedes...
There’s no certainty if RBI will be able to replenish its forex reserve stocks. The process could be quite long drawn, says Renu Kohli....
Interview | Questions on the Economy with Montek Singh Ahluwalia...
Montek Singh Ahluwalia answers some pertinent questions on the Indian economy and upcoming issues. ...
Interview | At about 5-6%, Economy Won’t Collapse but it Won’t...
Montek Singh Ahluwalia tells Outlook Business that a private sector-led economy can deliver sustained GDP growth. He also suggested a closer...
Interview | Exclusive interview with Montek Singh Ahluwalia: What to...
In an exclusive interview with Moneycontrol, Montek Singh Ahluwalia speaks on the state of the economy, and what is needed to unleash India's growth...
Non-Performing Assets: Dented by Iron and Steel...
The large decline in metal prices during 2014-16, predominantly driven by Chinese imports, made domestic firms in the metals sector uncompetitive. A...
Indian Rupee Goes Digital...
Digital currency and fail-safe wireless connectivity should have preceded demonetisation, says Jaimini Bhagwati....
A Buffer Against Banking Stress...
It is advisable for banks to build a counter-cyclical commodity price buffer during upswings in commodity prices which can be used during periods of...
The Answer for India’s Economic Recovery: Labour-intensive Manufacturing...
India's economic recovery calls for a focus on labour-intensive formal manufacturing. High under-employment and poor-quality employment have hampered...
Watch: Rakesh Mohan on the State of the Indian Economy...
In an interview to Karan Thapar for The Wire, Rakesh Mohan discussed the state of the economy six weeks before the end of the year, focusing...
Hindustan Times Leadership Summit 2022: Meeting Challenges of Resetting...
Hindustan Times Leadership Summit 2022: Many envisage a return to fiscal rules to strengthen credibility. But today’s situation offers an...
The Overvalued Rupee: Managing Exchange Rate Volatility and Forex Reserves...
Since the 1950s, a cocktail of partisan domestic interests has resulted in the Reserve Bank of India and the Indian government favouring an overvalued...
What is leading economist Rakesh Mohan’s view on inflation?...
How will global slowdown affect India? When will RBI's steps to rein-in inflation start show results? Rakesh Mohan answer these in a conversation with...
Why NPAs Are Not Just About Bank Governance...
Probing the links between twin balance sheet crisis and external commodity shocks could lead to a better understanding of the problem....
Commodity Price Shocks and Non-Performing Assets in the Indian Banking...
Abhishek Kumar, Rakesh Mohan and Divya Srinivasan show that nonperforming assets in the banking sector and profit ratios in commodity-sensitive...
Six Monthly Indicators of Recession...
The US economy isn’t in recession but may slip into one, writes Anoop Singh. ...
The Pandemic-flagged Need for a New Fiscal Framework...
India should consider moving toward a new principles-based fiscal strategy, rather than returning to a fiscal framework based on rigid numerical...
“Despite Warnings, Central Banks in Developed Countries do not Take...
Rakesh Mohan answers Bloomberg HT's questions about the causes of global inflation and the effectiveness of central banks' policies against...
Delaying Action does not Protect Growth: Montek Singh Ahluwalia on RBI...
The central bank affects the real economy not just through short-term interest rates but through a host of other instruments, including the quantity...
Asia and the Changing Global Economy: Rebuilding Growth Potential...
Asia and the Changing Global Economy: Rebuilding Growth Potential, authored by Anoop Singh, looks at fundamental issues from several perspectives in...
The Economy and India’s Future | Interview...
In an interview with Mirror Now, Montek Singh Ahluwalia discusses the country's economic health and predictions for the post-Covid world....
Timing and Design Key to Making Digital Rupee a Success...
Central Bank Digital Currency (CBDC) runs the risk of financial disintermediation, which can alter saving-investment strategy and impact banking...
What the Union Budget Got Right, and What it Missed...
The budget’s capital-expenditure plan could support our recovery but reforms in important areas can’t be held off any longer....
For India to be Financially Inclusive and Economically Better, Financial...
For a financially aware and empowered India, considerable effort and calculated steps need to be taken....
How Will the Economy be Affected by Budget 2022? | Interview...
In an interview with Times Now on the Budget 2022-23, Montek Singh Ahluwalia speaks on a host of issues including unemployment, job creation and the...
What the Government Needs to do to Boost India’s Growth | Budget...
Ahead of the Union Budget 2022-23, Business Today interviews Montek Singh Ahluwalia to take a deep-dive into the contours of the economy and...
Bring Real Estate, Petroleum, Alcohol and Power into GST | Interview...
Though the Indian economy is in recovery mode, the underlying growth impulses are weak, says economist Montek Singh Ahluwalia....
The Roller Coaster Ride of Non-performing Assets in Indian Banking...
While the pandemic and some of the associated policy measures could reverse the recent downward trends in NPAs temporarily, more durable policy...
What is the Credibility of Government Accounting?...
When the government presents the 2022-23 Budget, there will be relatively little attention spent on correlating the budget numbers with recent CAG...
Insolvency and Bankruptcy Code (IBC) and Long-Term Bulk Lending in India...
Jaimini Bhagwati examines the effectiveness of the 2016 Insolvency and Bankruptcy Act (IBC) as the most recent legislation to enable quicker...
For Meaningful Financial Inclusion, We Need Clear Metrics...
The purpose of any data or index is to offer us pointers on moving ahead. For meaningful financial inclusion, we must have meaningful metrics in the...
Quota share of BRIC countries in IMF should increase: Rakesh Mohan to...
Rakesh Mohan suggests the need to review the role of IMF due to changing economic weight of emerging countries, stressing on completing quota reforms...
RBI’s Growth Estimate ‘Exaggerated’ As It Fails To Reflect State of...
There are concerns on whether the 64.4 percent export growth will continue into the rest of the year as shortages of containers have led to a sharp...
Low Private Investment Is a Weak Spot In The Economy...
After the recovery of the economy next year, will we only get back to the growth rate of 4 to 5 percent which prevailed immediately before the...
National Monetisation Pipeline Betrays Narrow Outlook...
Private-public investment structures make sense, but they must be modeled to also generate social value. In today’s world, there are no shortcuts to...
Monetisation of Government Assets...
Leasing government-owned land would be easier and should be accorded higher priority....
Govt Should Let Fiscal Deficit Rise to 7.5% to Boost Consumption,...
The government must provide adequate income support, particularly for the poor, as a way of tackling the collapse in private consumption, says Montek...
Reforming PSBs Most Important Task Ahead for Government...
In this interview with Business Standard, Montek Singh Ahluwalia answers crucial questions on the economy....
Former RBI Deputy Chief Warns of Rise in Bad Loans Due to the Pandemic...
India’s expanded credit push to help small borrowers weather COVID-19’s impact risks fueling sour debt, says Rakesh Mohan....
We should be thankful for the economy’s liberation...
We owe a great deal to 1991 for liberating the economy from the dead hand of bureaucratic control....
Interview: Reforms, Protectionism, Trade, and Growth...
"If we raise duties to make Indian industry competitive, we’ll end up close to 1991."...
India needs a third generation of reforms...
In India’s development journey, two major policy departures in its approach to growth stand out. It is time for a third departure....
The 1991 reforms: The right people at a tight time...
The reforms were a product of an objective economic crisis, bureaucratic talent in key positions, and a plan on how to proceed...
The 1991 moment was 18 months in the making: Rakesh Mohan...
In a conversation with Puja Mehra, Rakesh Mohan discussed the Indian economic control system in-depth, the command-and-control economy, and how much...
Interview | MSS bonds must be part of the standard monetary policy...
During the interview, Dr Mohan said he fails to understand why the current Monetary Policy Committee (MPC) was not given the powers to take a call on...
Interview | Expect K-shaped, not V-shaped, recovery: Part 1...
In a 3-part interview, Rakesh Mohan analyses the Indian economy, banking reforms, the RBI's role, etc....
India must manage public finances better...
The ministry of finance could launch the process of stakeholder consultations and prepare a time-bound plan for the implementation of comprehensive...
India’s fiscal architecture needs changes...
The fiscal rules that have evolved over time in many advanced countries are now being tested during the COVID-19 crisis....
1991 reforms aimed at more than just BoP crisis: Montek Singh Ahluwalia...
The balance of payments (BOP) crisis was the immediate trigger but the other challenge was problem of slow growth, says Montek Singh Ahluwalia...
Which economies showed the most digital progress in 2020?...
Now more than ever, digital capabilities are essential to ensure a country’s growth and economic resilience. But how do different economies compare...
Indian Economy is in Structural Slowdown Since 2012...
Cutting of rates won't have as much of a response. One does not know what in some sense ought to be the resting point for the rates, says Rakesh...
How to solve issue of rising non-performing assets in Indian public sector...
The Indian banking system is beleaguered with non-performing assets (NPAs). According to the Reserve Bank of India’s Financial Stability Report...
Rethinking the budget in a post-GST India...
The goods and services tax (GST) is finally here, so perhaps now is the time to reflect on how the budget can be updated for a post-GST India. Just as...
“Finance Minister is looking to present a budget against the...
Brookings India Chairman Vikram Singh Mehta speaks to journalist Karan Thapar on whether the Finance Minister should be cautious or bold in this...
Demonetisation – thereafter proposing a new abnormal...
Now let’s try demonetisation without denouement, perpetually preserve the uncertainty A little over two months has passed since the Narendra...
Demonetisation push to labour reforms: molding the future of the markets...
Demonetisation has the potential to facilitate an environment that will develop a formal culture in India’s labour markets Among the loudest...
Demonetisation: Effect on interest rates, inflation and policy action...
Dr. Shamika Ravi (Senior Fellow, Brookings India) and Dr. Eswar Prasad (Senior Fellow, Brookings Institution) participated in a debate about the...
Shamika Ravi on implications on govt’s demonetisation move...
Speaking about Prime Minister Narendra Modi’s announcement to demonitise Rs 1000 and Rs 500 notes, Senior Fellow Shamika Ravi in this Facebook...
Demonetization is a net positive move...
Scaling back large bills will not end crime, but it will force the underground economy to employ riskier methods In a special broadcast on 8 November,...
Indian Financial Sector: Structure, Trends and Turns...
This paper traces the story of Indian financial sector over the period 1950-2015. In identifying the trends and turns of Indian financial sector, the...
Union Budget: FM has chosen stability over growth...
In the face of a sluggish global economy and volatile global markets Finance Minister Arun Jaitley had to convey a message of continued macro...
Marginal revolutions from Budget 2016...
There are numerous small announcements in finance minister Arun Jaitley’s budget that must be lauded comments Shamika Ravi Most television...
Looking forward to a big bang budget...
The global economy is in trouble, but India is attracting positive comment. The finance minister must make the most of the moment. The finance minster...
Leveraging the CSR mandate...
Some institutional arrangements that can maximise the collective impact of individual contributions The Companies Act of 2013 mandates a contribution...
Tur travails – Three components of a structural solution to the pain...
There is no better way to understand the spike in the price of tur dal than through simple supply and demand factors. Let’s look at the supply...
Matters of valuation...
The government’s multi-pronged approach, labelled Indradhanush, attempts to address a number of structural problems of public sector banks,...
How Far Can IndraDhanush Go?...
Finance Minister Arun Jaitley recently announced the Indradhanush framework – a reform structure for transforming the public sector banks. Subir...
VIDEO: To avoid market freeze, central banks have to act...
More disruptions in financial and other markets unless central banks take necessary actions to ensure markets do not freeze Watch the full interview...
Profiling and targeting...
Big data provides both companies and governments the ability to differentiate sharply and productively between customers and beneficiaries of welfare...
Advancing Financial Inclusion in India beyond the Jan-Dhan Yojana...
The recent policy measures undertaken by the Government of India and the Reserve Bank of India have provided a much-needed push for financial...
Can our banks finance the economic recovery?...
This column first appeared in Business Standard, on November 16, 2014. Like other products of the Brookings Institution India Center, this is...
A capital ladder for infrastructure...
This column first appeared in the Business Standard, on October 5, 2014. Like other products of the Brookings Institution India Center, this is...
The inclusion triangle...
This column first appeared in Business Standard, on September 7, 2014. Like other products of the Brookings Institution India Center, this is...
The SLR Barrier...
In last week’s bi-monthly review of monetary policy, the Reserve Bank of India (RBI) reduced the statutory liquidity ratio (SLR) from 22.5 per...
Demanding to be included...
In the 1977 film, Annie Hall, Woody Allen opens with two jokes that, he says, best reflect his attitude towards relationships. The first, which he...
Nudges and Pushes...
I think that cricket provides great metaphors for virtually everything in life. Thursday’s Budget certainly lends itself to cricketing...
Why the FM must digress...
By now, the budget proposals will have been finalised. The finance minister may make some last-minute changes, but these will not be substantive. The...
Finance and Sustainability: Regulatory and Strategic Dimensions...
The 30th Annual Sir Purshotamdas Thakurdas Memorial Lecture CONTENTS: Introduction Sustainability Framework Sustainability and Financial...
An evolving multilateralism...
The global economy can be viewed as a rather complex balancing act between forces of integration and those of autarchy. In many domains – trade,...
Fighting without fighting...
A film that I still remember from my teenage years is the Bruce Lee classic, Enter the Dragon. In the film, when the group of contestants is...
Seminar
10
Jan
2025
11:00 AM
-
12:30 PM (IST)
CSEP Auditorium
Seminar
16
Jan
2025
11:00 AM
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01:00 PM (IST)
CSEP Auditorium
Moratorium on New Subsidies to Garner Resources for Public Spending on Health
The Indian banking system is beleaguered with non-performing assets (NPAs). According to the Reserve Bank of India’s Financial Stability Report of December 2017, they currently stand at 10.2 per cent of all assets, while stressed assets, which are believed to be NPAs in effect, stand at 12.8 per cent. Related frauds amount to INR 612.6 billion in the last five financial years and governance failures on account of integrity and competence issues plague the banking system. Brookings India recently organised a roundtable in Mumbai on NPA resolution; participants ranged from a former Deputy Governor of the RBI, to bankers from […]
The Centre for Social and Economic Progress (CSEP) is an independent, public policy think tank with a mandate to conduct research and analysis on critical issues facing India and the world and help shape policies that advance sustainable growth and development.