Best of BS Opinion: Policy balance, slowdown in global demand, and more

Here is the best of Business Standard's opinion pieces for Thursday

The current account deficit is expanding at a time when the government is running a higher fiscal deficit, which is expected to remain elevated in the medium term. Even though India has buffers, higher “twin deficits” are always a risk for macro stability. In this context, our lead editorial notes that visible adjustments in both fiscal and current account positions will help strengthen macroeconomic stability, support economic activity, and boost investor confidence. Read here

Evidence of excess capacity globally could push out the need for new capacity in India, not just due to the weakening of prospects for exports, but also the rising threat of imports, writes Neelkanth Mishra. Read here

Positioning the government and the prime minister as some sort of angel benefactor of long-running schemes financed mainly by money compulsorily mobilised by the Indian citizenry through direct and indirect taxes must rank as a genius move, writes Kanika Datta. Read here

Quote of the day

 

“The size and diversity of the Indian economy offers a great lot of opportunity. India’s demographic strength is that it is skilled, high-end, technically savvy, providing solutions to the world. The same demography has purchasing power, and is very aspirational. This market is a captive market for any investor.”

 

Finance Minister Nirmala Sitharaman