The subtle art of credit price discovery
Taponeel Mukherjee | 17 Sep, 2019
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| As India grapples with credit issues, one of the primary factors that needs analysis is the broken transmission mechanism that relays credit quality to market participants. In common parlance, the transmission mechanism that provides information regarding the credit quality of the borrower to the lenders is unable to do so efficiently. Recent news whereby credit downgrades have just preceded defaults by Non-Banking Financial Companies (NBFCs) is a case in point.. |
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Three positive possibilities to look forward to
Arun Kejriwal | 09 Sep, 2019
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| The week gone by had a trading holiday on Monday in India and the US, and began trading on Tuesday on an extremely weak note. The merger of PSU banks probably did not go down well with the markets or they expected more than just this.. |
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RBI transfer to government: The good and the bad
Suyash Choudhary | 27 Aug, 2019
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| The RBI board accepted the recommendations of the Bimal Jalan committee and has decided to transfer Rs 1,76,051 crore to the government. This is broken as Rs 1,23,414 crore as surplus for year 2018-19 and another Rs 52,637 crore of excess provisions identified by the committee as per the revised Economic Capital Framework (ECF).. |
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A structural or cyclical slowdown?
Deepti Mathew | 26 Aug, 2019
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| The Indian economy is passing through a phase of economic slowdown, with the GDP growth registering one of the lowest rates of 5.8 per cent in the last quarter of FY19. The GDP growth rate for the first quarter of FY20 is feared to be lower than 5.8 per cent. While there is a consensus that the economy is slowing down, the debate is still going on whether the slowdown is structural or cyclical.. |
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Education and its economic outgrowths
Amit Kapoor | 19 Aug, 2019
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| In his Independence Day speech, Prime Minister Narendra Modi highlighted the issue of population explosion in the country and the need to address it. He added education as a means of both moderating the trend of rising population and making them productive as well. Development trends throughout history have shown that as literacy levels go up, fertility rate falls and economic growth is easier to achieve. The latter is due to the fact that with education, child progress takes place at a faster rate making the future generation of workforce more productive.
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Why Modi acted now on Kashmir?
Deepika Bhan | 12 Aug, 2019
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| The question is why did Modi chose ‘now to do what he has done with Article370? There was no big election in sight so as to create a build up for electoral gain. Neither was there any major crisis or any embarrassing situation for the government to find a succour in Kashmir. Perhaps, this was the best time to enact the best of action story for the Modi-Shah Combine.. |
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Enabling cities as drivers of economic growth
Amit Kapoor | 06 Aug, 2019
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| Economic development always comes with a dash of urbanization. That is almost an economic truism. Empirical studies have shown that nearly all countries that have attained middle-income status were urbanized by at least 50 per cent, and all high-income countries were at 70 to 80 per cent level of urbanization.. |
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Bond with USD liabilities, not necessarily with the bond
Taponeel Mukherjee | 29 Jul, 2019
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| The Budget 2019 announcement regarding a potential USD bond issuance by India has been in the news of late with opinions divided amongst market experts. Given the two distinct components of the USD bond issuance, of increased debt and higher USD liabilities, a look at the second component in detail is well worth our time. While the government will have to borrow to fund specific components of its expenditure, the question is whether the USD bond issuance route is the optimal strategy to utilise for increasing USD liabilities for India. Alternatively, are there alternative avenues to boost the economy by increasing USD liabilities.. |
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Economic remedies for water crisis
Amit Kapoor | 23 Jul, 2019
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| While contemplating our natural resources, past conversations often centered around fossil fuels and them becoming scarce due to overuse. However, recent conversations have stirred our attention to another natural resource that is available in abundance but is still causing a crisis in many parts of the world.
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