D H Pai's Feed
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

Photo

(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

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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 3, 2015
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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.

Dec 1, 2014
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Tax corporates less to revive economy

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

If Finance Minister Arun Jaitley’s comments from last week are any indication, the union budget in February has the potential to usher in a new fiscal architecture in India.

Nov 21, 2014
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How to get India’s exports back on track

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

The contraction of exports by 5 percent in October will pull down industrial growth and bloat current account deficit. The fall in exports may not be due to a chance fluctuation but a warning of things to come. There are strong reasons to suggest India’s export woes are due to worldwide trends which need to be understood so that the country can benefit from them.

Nov 13, 2014
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The future of inflation

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

Inflation has been easing both at the wholesale and retail level for some time. The RBI would have been pleasantly surprised that CPI came down to 5.5 percent in October, a year before anticipated. Even so, the trend does not appear to be firm enough. There are conflicting factors which pull in different directions, making it difficult to predict how inflation will behave for the rest of the year.

Oct 29, 2014
via Expert Zone

If Europe gets into a debt crisis

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

Just over a week back, Europe appeared to be headed for another debt crisis, rattling global markets. Interest on Greece’s sovereign bonds shot up 9 percent. Others followed, including weaker countries like Spain, Portugal, Italy and, shockingly, France. Only Germany offered some protection to investors, albeit with a sharp decline in interest rate.

    • 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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