An autonomous research institute under the Ministry of Finance

 

Production-linked incentives for 10 sectors show Modi govt’s intent, but need to be temporary

17/11/2020

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(Co-authored with Radhika Pandey)
 
Production-Linked Incentives (PLI) worth upto Rs  1.46 lakh crore have been announed for 10 manufacturing sectors. The sectors include automobile and auto components, pharmaceuticals drugs, advanced chemistry cell (ACC), capital goods, technology products, textile products, white goods, food products, telecom and speciality steel.   ...

Urban MGNREGA is a short-sighted idea, Modi govt has shown good sense to drop it

17/11/2020

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(Co-authored with Radhika Pandey)
 
The proposal that the government should bring in a right to employment in urban areas for Covid-relief may be a quick band-aid to help workers who have lost their jobs in the lockdown. 
 
But it is a short-sighted idea considering the state of ...

Reviving the Indian Economy

12/11/2020

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The Finance Minister Smt Nirmala Sitharaman had said that the demand for consumer goods has increased considerably during the festival months. October-to-March is the festival season in India. Based on the “Nikkei Manufacturing Purchasing Manager's Index (PMI)”, the Finance Minister said that the “economic activity had picked up in ...

Why IMF evaluators want India-style capital controls to be adopted around the world

10/11/2020

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(Co-authored with Radhika Pandey)
 
India has seen a sharp increase in capital flows over the last three months. From March to May 2020, there was a coronavirus-related selloff, which resulted in an outflow of foreign capital from India. 
 
This reversed since June: net portfolio investments increased to ...

Why Modi govt’s interest-on-interest ‘Diwali gift’ is good for India’s credit culture

06/11/2020

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(Co-authored with Radhika Pandey)
 
The Covid-19 lockdown adversely impacted businesses and made servicing of debt difficult. As this was an outcome of government policy, some kind of support from government was expected. 
 
The Government has issued guidelines to banks for implementing a waiver of interest-on-interest accrued on ...