India aims to copy China in what economists call “industrial policy”. The budget allocated Rs 2 trillion over five years to 13 industrial sectors through a production linked incentive (PLI) of 4-6% of production. This approach began earlier with tariff […]
India isn’t China, so don’t copy its industrial policy Read More »
The Budget speech announced the privatisation of two public sector banks (PSBs). While politicians have often talked of selling losing public sector undertakings, PSBs were long taboo. They account for two-thirds of all bank credit, but have lost enormous sums
Sell the best public sector banks; bids can be foreign Read More »
Covid has hammered the poor, yet stock markets have boomed. Massive printing of money by central banks has flooded the world, sending all stock markets soaring. The wealthiest have become wealthier. Some analysts say, let us impose a Covid tax
A Covid tax on the rich will hurt wealth creation Read More »
RBI predicts a disastrous GDP fall of 7.5%, yet the stock market has soared. The Sensex crossed 50,000 last week, up from 40,000 a year ago. Is this a bubble about to burst? Yes, it is a bubble. But it
Sensex: Yes, it’s a bubble but it will not burst so soon Read More »
Many economists are urging a major fiscal stimulus in the coming budget of finance minister Nirmala Sitharaman to deal with the continuing effects of Covid. This would be a mistake. The biggest drag on the economy today is fear of
Free vaccinations will be better than a stimulus Read More »
The Covid pandemic will change the world permanently in many ways. Most obviously, people will increasingly work from home. Workplaces will not disappear, but an increasing share of work will be done at home. This will save employers office space
Will work-from-home give a boost to female employment? Read More »
Arguably, the most-hated industry in the world is the pharmaceutical industry. Since dying people will pay anything, the normal price resistance of consumers disappears. So, profit margins for new patented drugs can be humongous. When anti-AIDS drug cocktails were invented
Big Pharma has reinforced its saviour image Read More »
Let me stick my neck out and say 2021 is going to be a tough year for the BJP. Its landslide win in the 2019 general election has diverted attention from the fact that it has fared badly in 11
Santa may not have gifts for BJP in 2021 Read More »
Covid apart, what was 2020’s main trend? Some say Hindutva rose and civil liberties fell. The Economist claimed India was moving towards a one-party state. I would argue exactly the opposite. India has proved that multi-party democracy and dissent are
India less secular but far from a one-party state Read More »
The agitating Punjab farmers can be painted as saints or sinners. On the one hand, they spearheaded the Green Revolution in the 1960s when India was starving, helping India become not just self-sufficient but a grain exporter. For this they
Farmer agitation: Use iron fist in a velvet glove Read More »
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