Best of BS Opinion: India's diplomacy, RBI leadership, and the universe

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

In the grand chessboard of our world, although unseemly at times, every move matters. Each decision, whether calculated or spontaneous, alters the game in ways whose ripples are felt across economies, borders, and pursuit for knowledge. From policy ambitions to geopolitical manoeuvres and the unrelenting pursuit of knowledge, the stakes are always high, and consequently, the strategies need to be diverse. Today, we examine the pawns, knights, rooks and queens making pivotal moves across the board, reshaping our shared reality.

 

Picture the government as a player banking on a golden pawn — the Sovereign Gold Bond (SGB) scheme — to achieve multiple wins. Launched with the promise of curbing gold imports, promoting savings, and reducing deficits, it seemed like the perfect opening move in 2015. Yet, eight years on, the gambit appears to be proving costly. Smuggling thrived under high import duties, undermining the strategy. While India’s current account deficit improved, the envisioned structural shift in gold demand never materialised. Now, with talks of discontinuation of SGB, it’s a lesson in the risks of overburdening a single pawn. Our first editorial explores how skyrocketing gold prices, coupled with interest payouts and exemptions, have turned SGBs from a treasury booster into a financial burden. Well, some gambits pay off; others leave the king vulnerable.

 

Meanwhile, across the border, India is engaged in a critical endgame with Bangladesh following Sheikh Hasina’s exit. The diplomatic board has shifted, with India carefully recalibrating its strategy under the new Muhammad Yunus-led interim government in Bangladesh. Foreign Secretary Vikram Misri’s visit this week appears less of a bold move and more of a strategic check, aiming to stabilise relations amid concerns over minority rights, cross-border trade disruptions, and energy deals like Adani Power. But the challenge lies in countering the influence of players like Pakistan and Jamaat-i-Islami while safeguarding India’s Northeast connectivity and security. Our second editorial today sheds light on how Misri’s efforts, though measured, suggest India is preparing for a long game, where patience and precision will determine the outcome.

 

Back home, the Reserve Bank of India (RBI) welcomes Sanjay Malhotra as its 26th governor — the new knight on India’s financial chessboard. With his deep expertise and history as a seasoned civil servant, Malhotra is expected to manoeuvre the central bank through inflationary pressures, banking regulations, and external challenges. The RBI, often seen as the rook protecting the economy’s core, has long been led by players drawn from a familiar pool. Since its inception in 1935, the RBI has been helmed so far by 25 governors, 14 of whom have been civil servants, reflecting a strong preference for bureaucrats over economists or financial sector professionals, writes A K Bhattacharya. The RBI has often found itself in strategic clashes with the finance ministry, but Malhotra’s appointment signals continuity and coordination. Therefore, in the grand game of governance, the knight’s positioning remains vital, balancing manoeuvrability with steadfast defence. The question is whether this knight will lead bold charges or quietly fortify the king's flank.

 

In the economic landscape, India’s family business groups are the kings, reigning with unmatched dominance. Titans like Tata, Birla, Reliance, and Adani have not just held their positions but extended their reach across sectors. Their pricing power, rising markups, and strategic diversification resemble a king’s expansive command of the board. However, unchecked dominance comes with risks. In their column today, veteran policy analyst Simon Commander and economist Naveen Thomas write that monopoly-like control hampers competition and innovation, prompting calls for stricter regulation, inheritance taxes, and caps on market shares. Will these kings embrace reform, or will the game demand new challengers to emerge?

 

On a different board altogether, today's book review by Devangshu Datta, an internationally rated chess and bridge player himself, delves into physicist Sean Carroll's trilogy, The Biggest Ideas in the Universe. Carroll invites readers to explore the cosmos, using equations as moves and diagrams as strategies to simplify the universe for curious minds. From gravity’s subtle pull to quantum mechanics’ bewildering uncertainties, the books decode the cosmic game where every rule defies expectations, writes Datta. The trilogy’s final volume, eagerly anticipated, promises to tackle complexity and emergence — the ultimate checkmate in understanding the universe. Read here for more.