D H Pai's Feed
Apr 2, 2015
via Expert Zone

Inflation targeting: Government needs to pitch in

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Inflation has halved in the past two years, but apprehension that it may rise again has led the government and the RBI to adopt inflation targeting.

Inflation control is the RBI’s central responsibility, but that does not absolve the government of its role in taking steps to correct the imbalance between food consumption and food production, which is the main source of inflation in India.

Apr 2, 2015
via Expert Zone

Inflation targeting: Government needs to pitch in

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

Inflation has halved in the past two years, but apprehension that it may rise again has led the government and the RBI to adopt inflation targeting.

Mar 18, 2015
via Expert Zone

India needs a combo of tax incentives and low tax rate

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

The effective rate of corporate taxation in India is 23.2 percent for companies with an income of 100 million rupees ($1.6 million) or more, which is lower than the statutory rate by a full 10 percentage points. This is due to incentives to promote investments or to direct investments towards targeted activities.

Mar 18, 2015
via Expert Zone

India needs a combo of tax incentives and low tax rate

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

The effective rate of corporate taxation in India is 23.2 percent for companies with an income of 100 million rupees ($1.6 million) or more, which is lower than the statutory rate by a full 10 percentage points. This is due to incentives to promote investments or to direct investments towards targeted activities.

Feb 19, 2015
via Expert Zone

Budget 2015: Third-generation reforms needed to galvanize economy

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

There were no major policy changes in last year’s budget, perhaps because the new government lacked the time to prepare. But Finance Minister Arun Jaitley has indicated that the upcoming budget on Feb.28 will bring India’s tax system in line with international practices to facilitate and encourage investments.

Feb 19, 2015
via Expert Zone

Budget 2015: Third-generation reforms needed to galvanize economy

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

There were no major policy changes in last year’s budget, perhaps because the new government lacked the time to prepare. But Finance Minister Arun Jaitley has indicated that the upcoming budget on Feb.28 will bring India’s tax system in line with international practices to facilitate and encourage investments.

Jan 30, 2015
via Expert Zone

Why the RBI’s 25 bps rate cut was too little

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

The Reserve Bank of India’s decision to reduce interest rates by 25 basis points on January 15 was a pleasant surprise, not because of the cut but due to the timing, as the bi-monthly policy review was still a couple of weeks away.

Jan 30, 2015
via Expert Zone

Why the RBI’s 25 bps rate cut was too little

Photo

(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

The Reserve Bank of India’s decision to reduce interest rates by 25 basis points on January 15 was a pleasant surprise, not because of the cut but due to the timing, as the bi-monthly policy review was still a couple of weeks away.

Jan 3, 2015
via Expert Zone

What will drive the market in 2015

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters).

The stock market woke up from its long hibernation in 2014, with the Sensex rallying 30 percent during the year. If not for the market correction in the last two months, Indian bourses would have been the best performers in the world.

Dec 23, 2014
via Expert Zone

Don’t cut capital expenditure while chasing fiscal target

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(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

In the last three years, budget deficit has been reined in from 5.7 percent to the targeted 4.1 percent. Much of the decline came from a cut in capital expenditure because tax revenues were less than budgeted and current expenditures proved too sticky. Finance Minister Arun Jaitley is again faced with the same problem and a cut in capital expenditure is most likely if the government is to achieve its 2014/15 fiscal target.

    • About D H Pai

      "I undertake research on current macroeconomic issues of interest, mainly to industry, as president of RPG Foundation, a private think tank. I have also been bringing out for the past 18 years a monthly publication entitled 'State of Business' for circulation electronically among select contributors."
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