Best of BS Opinion: Balancing acts and taming beasts in the global circus

Here are the best of Business Standard's opinion pieces for today

Ladies and gentlemen, readers of all ages - welcome to the grand arena of the global financial circus, where tightrope walkers of monetary policy, lion tamers of market volatility, and jugglers of public sentiment take center stage. This week, the center stage shared by the US Federal Reserve left the audience gasping as it adjusted the height of the interest rate trapeze, reducing the federal funds rate by 25 basis points. 

The Federal Open Market Committee has signalled fewer rate cuts for 2025, projecting persistent inflation at 2.5 per cent. This unexpected move sent markets into a selloff frenzy. It’s the classic tightrope act: growth and employment are performing somersaults, yet inflation remains the unyielding weight throwing the balance off. Add the fiery hoops of political uncertainty, including a potential second Trump administration, and the crowd is left wondering - will they stick the landing? Read our first editorial to find out. 

Over in the technology tent, India’s electric vehicle (EV) market is gearing up for a spectacular performance, but the stage is still under construction. With electric passenger vehicles comprising only 2 per cent of the market, carmakers are rushing to roll out luxury EVs, betting on brighter spotlights - rising disposable incomes and expanded charging networks. Yet, the supporting act - charging infrastructure - is falling flat. Our second editorial highlights that although the government has promised Rs 2,000 crore to boost infrastructure, but until the groundwork is laid, automakers risk flying off the trapeze of demand without a safety net.

  Let’s not forget the ringmaster of India’s financial world - the Reserve Bank of India (RBI). With a sprawling mandate that rivals a three-ring circus, the RBI faces conflicts between controlling inflation, stabilising the exchange rate, and regulating banks. History shows us that these clashes can lead to dramatic exits, as seen during the tenures of former governors. The solution? Streamlining the RBI’s act by narrowing its focus to core functions like monetary policy. In his column today, KP Krishnan notes that legislative reforms are the lion tamer this circus needs, but until then, the RBI must juggle its contradictions while ensuring the show goes on. 

Meanwhile, in the ecological arena, India’s compensatory afforestation (CA) program is grappling with its own set of challenges. Despite losing 2.3 million hectares of forest cover since 2000, the CA policies have struggled to deliver. Poor land handover rates, financial mismanagement, and low afforestation targets threaten to turn this noble initiative into a tragic sideshow. The National Green Tribunal and other watchdogs have proposed reforms, emphasizing transparency and community involvement. A reset of the CA program could transform this act from a lackluster routine into a star attraction in India’s development narrative, writes Vinayak Chatterjee. 

As the circus winds down, today’s book review by Neha Kirpal of Githa Hariharan’s This Too is India: Conversations on Diversity and Dissent takes the stage to remind us of the importance of dialogue in this vast, diverse tent we call home. What’s at the heart of India’s labyrinthine identity? The book offers 20 riveting conversations on culture, democracy, and dissent. From caste inequities to threats against free speech, the book amplifies voices demanding change. A must-read for anyone trying to untangle the complexities of modern India.