The first full-year budget of the Modi government, which will be unveiled on 28th February, is expected to be a reformist budget. It will aim to kick-start the investment cycle and revive manufacturing. While there are several priorities for the Indian economy at present, most of them can be summarized under what can be called…
read moreMy recent journey in a MRTS train was interesting. I happened to hear a conversation between two of my co-passengers and it made me think a couple of things related to the “just-in” big thing – “Make In India”. Passenger 1 was reading a news item about the conflict of Rajan vs. Jaitley and passenger…
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China recently made a fresh effort to boost its flagging economy with cash injections by its central bank but signs are mounting that the monetary stimulus is not working. The debt ridden companies don’t have the appetite to borrow more even at low rates. Last week, Bank of China pumped in $81 billion into the…
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After the 2008 sub-prime crisis which drained liquidity in the financial markets of the world gave rise to number of changes in the way loans were taken by individuals across the world especially in the US. First, the overall credit card got loans have been drifting down in amounts over the last 6 years to…
read moreThe world is turning out to be an inhuman place filled with fear and hatred. Recently in the name of religion, hundreds of Iraqi’s citizens were killed. Several thousand were also displaced. A pitiable sight which is shown live on TV especially when women and children are sitting in the hot desert, not knowing when the…
read moreThis is an ongoing conversation between the student and the professor. Student: Professor, I read in the papers that the price of Brent Crude oil has touched 115 dollars a barrel. Will it hurt India? Professor: Of course it will. The main reason for this price hike is because of the civil insurgency in Iraq….
read moreThis is an ongoing conversation between the student and the professor. Student: I know you teach trading in commodities. Please tell me the impact of monsoon on the commodity prices. Professor: Monsoon is a massive see breeze blowing in from the sea. In India, we call it South West Monsoon. The breeze is from the…
read moreWe are only 10 days away from the budget. The last 10 years of UPA government had committed so much to welfare and subsidies that it will take a great leader like Modi to stand up and say we cannot afford this luxury anymore. Let us look at some facts. Start with food subsidy provided…
read moreIt is often said that “the data speaks for itself”. In the case of Indian economy and its future growth, it is applicable admirably. The politicians often refuse to see the true picture and instead claim that the economy has bottomed out and now is rearing to take off. Is it? On what basis are…
read moreStudent: Sir, can a country default on debt? If so what recourse does the lender have? Professor: Difficult question. But let us look at what is happening now. Argentina owes 2.3 billion dollars to foreign bond holders and has just announced that it cannot pay. This is the default on debt. Student: Scares me. What…
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