The proposed policy regime may seem a bit strange to some readers
Despite the massive opportunity cost of the PLI scheme, there is considerable enthusiasm amongst the proponents of the scheme
It is true that in the last seven-eight years, there has been a build-up of unsold inventory of apartments in several cities
The central government is disinvesting 5 per cent of the shares of the Life Insurance Corporation of India (LIC)
It is interesting that investors in the stock market are often not overly concerned with reforms for credible returns
Some of the benefit due to a low interest rate policy is not an incentive; it is a subsidy
It is very good that the public authorities are interested in economic growth but the approach needs to change
The consequence of all this is what we see, which is that stock prices can go haywire
The oil tax is unlike, say, the income tax, which is progressive as the income tax rate rises with the income
'The fiscal situation in India is quite weak, which is why the international ratings of the Indian sovereign are consistently very low', says the author
Low interest rates in a downturn tend to push up asset prices (and high interest rates in a boom can lower asset prices).
What we have is effectively a tax though it is subtle and non-transparent as it is collected indirectly through the RBI.
India continues to be in urgent need of various supplies to deal with Covid-19
It is important to shift, in a phased manner, to a good and general policy framework from a situation of a plethora of schemes
At present, an important reason for the large leeway around the inflation target lies in the behaviour of the prices of oil and food, which can push prices more generally