The sharp increase in inflation (CPI) to 7.35% for Dec’19 has put a question mark on whether inflation targeting (IT) based monetary policy really works? While the question may be pertinent, it would actually be ridiculous to blame monetary policy for this spurt. More importantly, it is essential to deliberate on the proper indicator of inflation which monetary policy can influence. Here is a look at the dynamics of inflation and how monetary policy works. Continue reading Inflation Targeting – Has Monetary Policy Failed to Deliver??
The Economic Survey 2019-20, presented in the Parliament today, seeks to give respectability to the process of wealth creation and to the wealth creators. This looks contradictory to the focus of the government on rooting out corrupt business practices over last five years. However, looked closely, the entire narrative of the Economic Survey is interspersed … Continue reading The Economic Survey – Food for Thought..
The pre-budget deliberations are largely focused on how much would be the fiscal slippage for the current year (FY20) and what would be the extent of borrowings projections for FY21. The exercise this year is probably the toughest in recent years, a delicate balancing act trying to demonstrate commitment to fiscal discipline on one hand … Continue reading Budget – Five Decades of Public Finance..
Banking sector’s NPA (Non-Performing Assets) has become a cause of concern again with RBI’s observation that the same may increase in next 12 months. RBI’s latest Financial Stability Report (FSR) attributes the same to change in economic environment leading to fresh slippage and declining credit growth. Here is a look at the aggregate NPA level, … Continue reading Banks’ NPA – Taking Stock..
The annual OXFAM report makes for another distressing reading with world’s billionaire, totalling just 2,153, owing more wealth than 460 crore or 60% of humanity on earth! Further, wealth owned by top 1% is twice that of 690 crore or 90% of humanity. What makes it worse is that governments across the world are in … Continue reading OXFAM Inequality Report – Sign of Economic Health or An Economic Crisis??
NTPC Ltd (formerly, National Thermal Corporation Ltd) is a low-profile public sector company meeting over 20% of country’s electricity needs. The company has recorded core sales growth of 7.9% CAGR over last ten years and growth in sale of electricity at 2.8%. This is much like the steady-state growth recorded by utility companies in the … Continue reading Corporate Analysis – NTPC Ltd
Corporate bond market in India is going through a challenging time as a result of the defaults over last one year or so. While efforts of government and regulators had provided the necessary nudge, these developments have dented the confidence of the newer participants and fence sitters. More worryingly, it has affected the credibility of … Continue reading Corporate Bond Market – Tracking the Developments
The cabinet decision earlier this week to deregulate coal mining and remove the end use restriction is a water-shed event for the sector. Coal mining is possibly the only regulated sector and it is difficult to understand why this decision took such a long time. Here is a look at the sector and the implications … Continue reading Coal Mining – Freed, At Last..!
India’s rural economy remains an area of significant concern due to low level of income and high population dependent upon the same. Income of a farmer, which was about 35% of an urban worker in 1980s, has further declined to 30% now. Despite all the efforts and large spending, the sector just does not seem … Continue reading Agriculture Sector – Issues and Challenges
Indian pharmaceutical industry is among some of the industries going through deep-rooted structural changes. It is, probably next to food industry, in terms of its sensitivity to socio-political structure and has been subjected to greater price control over last few years. Going a step further, the government has now proposed putting a ceiling on margins … Continue reading Industry Analysis – Pharmaceuticals