The laying of foundation stone for development of another inland waterway earlier this month brought little focus on the inland waterways transportation system. With nearly 14,500 km of waterways, roughly 5 times the length from North to South, these waterways can change the landscape of goods transportation within the country. In fact, the ease of transportation and huge benefits arising out of it leaves one wondering why they have not been developed so far?? Continue reading Inland Waterways – Tapping the potential..
Comments by RBI deputy governor, Viral Acharya, accusing the central government of impinging on the autonomy of central bank has caused huge ripples across the markets. The impact of his comments has been even greater as the market is already grappling with a liquidity freeze. However, the key point is, is government really interfering in … Continue reading Is the Government Impinging on RBI’s Autonomy??
Amidst the continuing liquidity crisis, NBFCs mismanagement and banks’ NPA woes, there is one trend that gives some reason to cheer. Total liabilities of the central government have come down to just about 50% of GDP at the end of FY18 as per RBI data. This is a substantial improvement from a high of 67% … Continue reading Analyzing Government Debt – Current and Historical perspective
Evolution of corporate bond market in recent years is a defining development for the financial sector. This has resulted in sharp rise in outstanding corporate bonds which has gone up from just about Rs 50,000 crore in 2008 to over Rs 27 lakh crore by 2018. The development does not only provide cheaper financing to … Continue reading Analyzing Corporate Bond Market
Income disparity seems to have become an unintended outcome of economic growth across the world, India being among the worst performer. As per the world inequality report 2018 released by World Inequality Lab, the share of top 10% earners in India has risen to about 55% in 2106 from just about 32% in 1990. The … Continue reading Income Inequality – India’s Performance
Recap – As per MOSPI survey, there are a total of 1.9 lakh factories operating in the country with Rs 38.5 lakh crore of capital invested (2015-16). These factories generated net value of Rs 10 lakh crore, half of which was in the form of profits, out of their invested capital.For a country like India, … Continue reading Annual Survey of Industries – Part II
While there was a crisis building up in terms of finding a borrower, there was also a crisis in terms of finding whom to borrow from! And probably this is a bigger reason for the current crisis then the first.The sector was marred by a number of frauds involving swindling of depositors’ funds during 1990s … Continue reading What ails NBFCs..?? (Part II)
The default by IL&FS has created a storm in the market like not seen for a long time. Despite the swift and proactive decision by the government to take over the management of IL&FS, the issue has become a systemic crisis not only affecting the NFBC sector but to an extent, the entire financial sector. … Continue reading What ails NBFCs..?? (Part I)
The annual survey of industries covering total of 1.91 lakh factories shows an impressive increase of 10% in net profits for year 2015-16, latest available. The factories have total invested capital of over Rs 38.5 lakh crore as per the report released by Ministry of Statistics, Planning and Implementation (MOSPI) some time back. The survey is the … Continue reading Annual Survey of Industries – Government Report (Part I)
RBI’s monetary policy is dictated towards achieving a level of money supply which keeps inflation in check and still, leaves sufficient money to help economy grow. But there are different forms of money such as narrow money, broad money and reserve money. So, which form of money does the monetary policy control? And does that … Continue reading Money Supply – Understanding the Different Forms