D H Pai's Feed
Apr 23, 2012
via Expert Zone

RBI rate cut — too little, too late?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The RBI Governor cut the repo rate on April 17 quite reluctantly, even hinting there wouldn’t be another cut soon. Perhaps, he was under pressure from elsewhere, compelling him to look beyond inflation which had been his sole criterion in raising the repo rate.

Apr 13, 2012
via Expert Zone

Off the balance in external payments

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It always takes time for the government to wake up to any emerging problem; and when it does, the problem is already magnified. That is what’s going to happen to the balance of payments.

Apr 13, 2012
via Expert Zone

Will the RBI change its mind?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The RBI seems to be almost obsessed with the high rate of interest. At the January review of credit policy it remained silent and on March 9 made an unscheduled announcement about the cut in CRR to make up for the shortfall in liquidity. Though this infused 480 billion rupees into the banking system, it did not ease interest rates in spite of persuasion by the Finance Ministry.

Apr 2, 2012
via Expert Zone

Can BRICS evolve into a power bloc?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The fourth BRICS meeting held in New Delhi on March 29 did not end with mere rhetoric; it agreed to some substantive mutual arrangements that would promote common interests.

Mar 28, 2012
via Expert Zone

Will Subbarao oblige Mukherjee?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

“The government will be forced to take difficult decisions,” Finance Minister Pranab Mukherjee said at a FICCI event while expressing hope of a “reversal of the policy rate which should help in improving business sentiments”.

Mar 19, 2012
via Expert Zone

Is the fiscal deficit phony?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The stock market did not respond positively to the budget in spite of the cut in Securities Transaction Tax (STT) and the provision of tax benefits to retail investors for investment in equity because of the trust deficit in budget arithmetic. The fiscal deficit is too high and could also escalate during the year considering that the assumptions on which it is based are not realistic.

Mar 5, 2012
via Expert Zone

Budget 2012-13: Expectations and exigencies

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The Union budget has always provided major policy direction which has been anxiously awaited by the common man and the industry. But over the years, the tax system has become more crystallised and yet expectations have not ceased.

Feb 27, 2012
via Expert Zone

Obama’s corporate tax reform

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

On February 22, U.S. President Barack Obama’s administration brought out a white paper on corporate tax reform which, if enacted, will make a significant difference not only to America but also to many other countries.

Feb 21, 2012
via Expert Zone

Cost of a rate cut delay in India

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The RBI took the first step to ease monetary policy by reducing CRR by 50 basis points on Jan. 24. However, it postponed an interest rate cut, in spite of the advice by the special committee, only to confirm its reputation of being cautious. But excessive caution can also cost the country a pretty penny.

Feb 10, 2012
via Expert Zone

Sensex on the bounce

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The year 2012 has begun well for the stock market. In just six weeks, the Sensex was up 13 percent which made up more than a half of the fall in the previous 52 weeks. Will this trend survive the rest of the year?

    • 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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