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Bidens take on Indias economy is both bizarre and bothersome
On the campaign trail, the US President said xenophobia was responsible for stalling economic growth in India, China and Japan. His comment is puzzling, especially in India, which has the worlds fastest-growing major economy and prides itself on inclusivity.
The Go First case: India's insolvency court needs an understanding of aviation
The prolonged delay in Go Firsts insolvency case hasnt helped Indias campaign of ease of doing business in the country
The Godrej split: Brand sharing holds the key
The familys asset division plan has done well to minimize scope for a wrangle over a brand prized for elasticity across markets. Like a Mbius strip, the brand can be splitbut not apart.
Biden is off the mark on xenophobia
US President Joe Biden clubbed India with China, Russia and Japan as countries he claimed were too xenophobic for their own good. Such statements lose him credibility, especially when Americas own vaunted openness seems in such bad shape.
The article explores income and wealth inequality, taxation on the rich, and India's tax/GDP ratio. It questions if India's tax rate is low and analyzes wealth concentration trends and market efficiency, emphasizing the need for a comprehensive understanding of the data and perspectives.
Why India needs to give more power to its regulators
Supreme Court rebukes IMA for unethical practices, highlighting inadequate regulations in India, affecting product quality. Urgent need for a healthcare regulator to address patient grievances and ensure affordable insurance coverage for citizens.
Self-driving Teslas cant sneak around the US-China silicon curtain
Elon Musks visit to China got Tesla a deal with Baidu, but will it help? The EV race in Asia this year will be won by the cheapest hardware, not the most cutting-edge software.
Trying to predict what the Indian voter will choose: A weathervane job?
Indias anti-defection law made elections about picking political parties more than individual candidates, which in turn has meant which way the electoral hawa or wind blows can make a significant difference to outcomes.
Many lives could be saved by making organ donation our default option
A law that makes everyone opt for organ donation unless one chooses to opt out would serve a humanitarian cause by boosting supply. It would also do our economy a good turn.
Economic redistribution: Whos afraid of progressive taxes?
Theyre needed to fund essential public services and foster a society with equal opportunity for all. Inheritance and wealth taxes may be inefficient, but lets properly ensure other direct levies raise more revenue from the rich than others.
The KYC disruption: Investors deserve better than this
Its unfortunate that so many investor accounts have been put on hold for identity data gaps. Yes, compliance matters. But companies and mutual funds couldve put in much more effort to help out
AI frontier: Can India leap ahead?
Microsoft will invest $1.7 billion in Indonesia as part of its grand AI plan. Indian IT service firms must keep pace with the AI trajectory. Lets combine local talent with openness to other models.
Are Meta and GoI really tussling over encryption? Or are we watching covert mutualism at play?
Despite seemingly insurmountable issues, India continues to be WhatsApp's second-fastest growing market, and is regularly used by Meta to test-launch new services that it hopes to monetise, like WhatsApp Business API - arguably a future money-spinner as a customer relationship management (CRM) tool for SMEs - WhatsApp Flows and WhatsApp payments.
Universal Basic Income (UBI) is a concept gaining traction globally, offering citizens a regular payment without conditions. While it's not a new idea, its implementation varies. Some see it as a solution to growing inequality and AI threats, while others prefer direct job creation. Several countries have tested UBI, with mixed results. In India, discussions around UBI have sparked debates, given the country's existing welfare schemes.
Indian banks are slipping on a banana peel of tech adoption
Rapid progress in digital banking has exposed the system to risks. Drastic supervisory steps may be necessary, but they will not be enough. RBI must update its understanding of cybersecurity.
What will the rising mercury this summer do to Indian inflation?
Its not a bright picture for prices. Indias balance of food-supply likelihoods has raised the question of whether fiscal 2024-25 will see monetary easing at all.
We are in a frantic race for post-industrial dominance
Industrial policy has reached epidemic levels globally. It is playing a role thats subject to the risk of resources being misallocated by policymakers.
Elon Musk shows why India cant take China-plus-one narrative for granted
The worlds discomfort with China, Washington-Beijing geopolitical tensions, and trade and tech wars had begun to lull India into thinking that all is at last in place for our manufacturing sector to take off
Public policy education could make a better country if done right
Engaging students and executives from various disciplines in tackling social challenges will bring forth talented problem-solvers. A wider and better understanding of our problems could improve policymaking.
Loan recovery: Credit penetration must not turn into a nightmare
Wider loan supply is a vital economic pursuit in India, but app-driven lending is exposing people to coercive recovery tactics. The depravity these have sunk to gives credit a bad name.
Deepfake distortion: Has Indian politics fallen prey to it?
While deepfake worries predate Indian elections, fresh concerns have been sparked by recent video clips of politicians. Can we expect people to be duly sceptical of what they see and hear online?
'Vive La AIvolution!' in the air
AI impacts diverse sectors like jobs, empowerment, technology, and social structures. It necessitates skill development, infrastructure access, and empowerment initiatives to harness its potential for positive change and combat societal challenges effectively.
Dangle less tax and watch 'em go
Personal income-taxpayers in India live in an abnormal environment of taxation where they get next to nothing for compliance and good citizenry. Sure, it can be argued that they get roads, utilities and other infra. But these are delivered to all citizens, including those who systematically evade taxes, giving honest taxpayers only the advantage of a good conscience.
Governance reform: Karthik Muralidharans treatise is refreshingly new
His book stands out for its analysis of the country and the solutions it offers us, but underplays the role of technology.
Political risk insurance:Expand its coverage to help Indian businesses go global
Outbound FDI is crucial for Indian firms to expand globally but coverage gaps in what local insurers offer must be plugged. The market sorely misses policies that make dollar payouts.
Climate nudge: Let behavioural economics solve the planets crisis
A novel approach based on the SCs climate ruling combined with a key insight from Thalers observations of human behaviour could deliver results. Start with the right to a clean environment and think incentives all the way through.
AI hogs energy and its regulation must take its climate impact into account
Whats costly neednt be worthy. We must weigh the costs and benefits of AI deployment. The rules need to recognize the high cost of its applicationin terms of investments, climate effects and other environmental factors.
Making sense of equity markets is a challenge: Look at RBIs attempt
A recent RBI working paper is a welcome addition to the literature on this subject even if it doesnt explain markets to our satisfaction. Its not an easy taskas a review of Nobel wins can testify. Recall the theory-driven LTCMs collapse?
CEOs exit: Another bump in Ola's ride?
IPO-bound Ola Cabs saw its chief Hemant Bakshi resign after barely four months in the post. Whats up? Going-electric jitters? Its path will be under watch.
View: In todays tech-driven landscape, we need new economic thinking on equity and sustainability
In a hyper-connected world, income inequality, debt burdens, and social disparities persist. Urgent innovative strategies are essential to address widening gaps and shift the focus to stakeholder value for human development, Sam Pitroda writes.
India Inc. Charges Towards Sustainable Change With EV Push
By the numbers, projections indicate that by 2030, approximately 40% of all vehicles in India could be EVs. However, sustaining this trajectory presents a formidable challenge for India Inc. due to the existing limitations of the country's EV infrastructure.
The US ban on non-compete clauses is good for labour market dynamism
If it should be easy for employers to fire workers, then it should also be easy for employees to quit. By allowing workers to move freely to roles where they are most valued, the FTC is fostering a competitive and fair labour market.
AI asymmetry: Can our IT service firms close their gap with GenAI rivals?
An information asymmetry needs to be fixedand fast. Enhancing the skills of employees through AI training could improve the capacity of Indian IT service companies to compete on a more equal footing.
Theres much ado about a decline in Indias household savings rate
It shouldn't worry us as the money is merely shifting to other assets and isn't as stark a phenomenon as some critics suggest. Here's what the numbers say.
India needs a reliable database to aim its welfare schemes better
We need a clear picture of India's have-nots. Without an up-to-date database that's accurate, governments will find it hard to reach households in need of state support.
Leadership pitfall: Diffused accountability is formula for organizational failure
Leaders must take responsibility for what happens on their watch instead of trying to pass the buck. The rule spans all kinds of organizations, from armed forces and administration to businesses.
Allot or auction satellite telecom spectrum? Signal clarity, please.
The rationale of insisting on auctions, as the Supreme Court did in its 2G-case ruling, has weakened as technology and global norms have evolved. The 2G muddle was value destroying. Indian laws should offer clearer guidance to regulators.
Indias political economy: Higher-for-longer policy rates pose a peculiar problem
Interest rates will probably stay higher for longer not just in the US, but here in India too. It could restrain a revival in private investment and constrain what the government can spend.
Is Bihar casting its vote or voting back its castes?
The people of Bihar are undoubtedly politically sensitive, but they remain obstinate about voting on the basis of castes.
View: America doth protest too much?
The pro-Palestinian anger is earnest, and many Jewish students are participating. But some of the slogans have crossed into hate speech. 'We are Hamas' is a common chant and placards saying 'Al-Qasam's next targets' have been spotted. Al-Qasam is the armed wing of Hamas -not that the rest of Hamas are Gandhian. Loud threats that the Oct 7 attacks on Israel will be repeated, not once, not twice, not a hundred but ten thousand times, have gone viral.
T+0 is more than a procedural update. It will fundamentally alter trading
The shift to T+0 has met with mixed reactions and holds immense potential to enhance market operations. Here's why it can potentially improve the efficiency in the cash markets to the next level.
Alice Waters, renowned for advocating universal access to healthy, organic foods, emphasizes the impact of food choices on our bodies, families, communities, and environment. At a recent event featuring top Indian chefs, including Manish Mehrotra and Manjit Gill, the focus was on sustainable, indigenous ingredients and local culinary traditions. Waters' philosophy resonates with the launch of a book by the Centre for Science and Environment, highlighting recipes and traditional knowledge for sustainable food choices in a climate-affected world.
Uni-buzz: Even Indian universities can boost local economies in student zones
India suffers from what we can call a sizable international student deficit. More public investment in developing world-class institutions of learning would attract students and boost local economies.
Rural Raj: Viksit panchayats offer us a pathway to Viksit Bharat
Every Indian citizen must have access to quality public services and government schemes and benefits. In the most remote of villages too. For a developed India by 2047, we must empower our rural institutions as an imperative.
Manu Joseph on life: It is beautiful, and without any magic
Our perception of a soul or even vulnerability to events beyond our control can be explained without magic.
Sundar Pichai has firmly put down an employee rebellion at Google
Google rejected employee protests against its cloud service contract with Israel, sacking a bunch of protestors too, a departure from its more liberal past. But then, Alphabet cant afford disruption over crucial defence-sector opportunities.
Business buzzwords: Do executives need to outgrow them?
A fixation with trending topics like AI is discernible among CXOs. Boys with toys spring to mind. For India Incs leadership, its crucial not to let the prevailing buzz detract attention from substantive issues.
We must ensure ethical use of carbon credits
Indian corporates have led the way in ensuring transparent emission disclosures, but we need to also put in place guardrails that prevent misuse of carbon credits.
Why India loves to hate inheritance tax and estate dutywrongly
Opposition to the inheritance tax defies political and economic logic. It can only be justified on grounds of difficulty of collection and administration.
Risk alert: Ensure masala safety for the sake of Make in India
Our food safety regulator must extricate us from a dust-up over packaged masala mixes after Hong Kong and Singapore banned some exported from here. For India to be the worlds next big factory, we cant afford to let a reputation for lax quality standards set in
Call centres will be outmoded by AI : What next?
TCSs CEO reckons that call centres will be rendered redundant by customer call-taking chatbots within a year. Lots of Indian jobs will be hit. Will firms like TCS create new ones?
Jack Welchs CEO factory has stopped production: Good riddance.
Yes, GE offloaded its fabled Crotonville CEO incubator. The idea of assembly-line CEOs doesn't work anymore.
Amid the election din, argumentative Indian TV debates stand out
Alas, a representative ringside view of Indian polls is impossible to get from overseas. But loud TV talk suggests that democracy alarmists should calm down and Indias electorate is more aware than it may seem.
Real costs: Why solar and wind energy are not market winners yet
Claims that wind and solar energy are now cheaper than fossil fuel-based energy are misleading as these refer to costs only when the sun is out or wind blowing but dont account for intermittency.
AI bot evolution: Agents will be the next big thing in artificial intelligence
As we devolve agency to AI agents for various tasks, we mustnt blow the lid off a Pandoras Box. Tech companies want to keep humans in control of AI actions, but such tech can also give agents autonomy.
Indias employment paradox of the 21st century: A crackable puzzle
We saw a post-covid reversal of both positive and negative labour-market trends. How and why so? An ILO-IHD report offers clues. Hint: We had a covid backslide and surge in broadly defined self-employment.
Tesla faces an identity crisis: carmaker or tech firm?
Elon Musks fiendish conundrum
Markets are embracing India's PM Modi for what he wont do
Unlike 10 years ago, the Indian prime minister isnt promising major economic reforms. And that suits investors just fine.
Redistribution: A Universal Basic Income policy cant turn poverty into history
The politics of redistribution has brought various versions of a UBI into focus. While people in deprivation clearly need relief, a UBI alone cant be relied upon to make poverty a problem of the past.
Kotak must act fast to escape RBIs cyber-risk clamps
RBI has barred Kotak Mahindra Bank from issuing new credit cards and enlisting new customers through its website and app because of tech compliance failures. The private lender should get its house in order quickly.
Letters to the Editor dated April 24, 2024
Has India recovered from covid? Look at the data.
While most economic indicators looked quite vibrant in the last two-three years, much of it can be attributed to base effects. A more comprehensive view of Indias economic performance before and after covid shows that there is still some distance to be covered.
Globalization vs democracy: The voiceless need a say
Big decisions taken by big powers like the US that impact the whole world might well be different if the millions impacted overseas also had a vote.
The Indian summer is too hot for elections
A drop in voter turnout should put soaring temperatures under scrutiny as a factor. With global warming afoot and long waits in line a given for voting, India should consider sparing its voters such discomfort.
Snooping is not a good way to keep kids safe online
We mustnt adopt child-tracking apps. These violate privacy and could even set gender parity back. We should focus instead on inculcating a fine sense of responsibility.
Size matters: Reliance should lead a dividend payout boom
The companys size achievements stand outits top-line crossed 10 trillion and annual pre-tax profit 1 trillionbut its small dividends are a reminder of the low yields of Indian equity in general. Could Indias biggest business help effect a big reversal?
Best foot forward: Will local sizes help?
An Indian shoe size system has been developed by researchers after a pan-India survey that involved taking 3D scans of Indians' feet to study how they are typically shaped. Are we going to get better shoe comfort if its adopted?
Ukraines US lifeline: Is it just a straw clutch?
The latest effort by the US Congress to channel billions of dollars in aid to Ukrainian war efforts may be adequate for now, but that cant mask the fact that Kyivs American support has been wearing out. A change in the White House may even end US aid.
India's space ambitions: Market forces are with us
Policy emphasis, coupled with enhanced geopolitical influence, could bolster our space economy after the opening up of this sector placed it on an upward trajectory.
How state-level school boards can promote educational equity
State-level curriculums should align with the National Curriculum Framework while incorporating state-specific elements, ensuring that all students receive a robust educational foundation that can satisfy national standards and suit local contexts.
Asset tokenization can revolutionize financial systems
Imagine a common ledger for all assets that embeds the rules and assures us high system integrity. It may be hard to implement but we must strive to make it work.
Dial Vi for revival: Its FPO was a success
Vodafone-Ideas 18,000 crore follow-on public offer got subscribed over 6 times by the end of bidding. This relieves the worry that India will end up with a telecom duopoly.
The economy is highly relevant to poll outcomes but isnt it a two-way street?
As Indias finance minister has indicated, economic growth matters as a welfare enabler, above all. While politics has settled this point, how politics itself could shape our economic destiny is open to contest.
Urbanization pressure: Indias housing policy needs a big rethink
Reforms must take city-ward migration into account, enlarge urban supply and make use of rental vouchers for the needy.
Indian welfare: Beneficiaries and benefactors must overlap more
We can afford a large welfare system and even a universal basic income, but the tax burden must be shared much wider. Our direct tax collections need to increase.
Palestinian statehood: Speed up its realization
At a time of heightened tension with Iran and all the insecurity that comes with it, it has never been more important for Israel to defuse the anger of Palestinians living in territories under its occupation.
What Biden can learn from Modi: Keep inflation in check
Modi's inflation-targeting RBI mandate is a case of good politics, one that can be a bigger vote winner than many leaders around the world may think.
Oh no, not again: Were back under the shadow of a nuclear cloud
First came the Ukraine war and then Gaza. Conflicts with geopolitical dimensions spell a danger unseen since the 1960s.
Golds complicated move, and the rising appeal of silver
Owning gold is most advantageous as a form of insurance. While it might slightly reduce your overall returns, it offers significant mental peace and security
Indias direct tax ramp-up is showing the way
Data released on Sunday showed that its net direct tax collections in 2023-24 hit 19.58 trillion, up 17.7% from 2022-23. This could be good news on two counts.
Palestinian puzzle: Could low-stakes compassion be dangerous?
Its a hard question to answer but Hamass human shield tactics in Gaza force us to confront it.
Gone are the days when a manufacturing boom would create good jobs
Technological changes have made boosting manufacturing-sector employment resemble chasing a fast-receding target. We need policies that focus on fostering productivity and labour-friendly innovation.
Gold bonds: A win-win idea for our economy and investors alike
Indias sovereign gold bond scheme has been of benefit to retail investors as well as the whole economy. Whats good at the micro level need not be bad for the macroeconomic picture.
The global luxury market is in a slump. Should Louis Vuittons owner worry?
The first half of this year should be a nadir for luxury demand but the industrys top player owns reliable labels like Louis Vuitton and Dior that could help pull it through.
Party manifestos: Nothing manifest about them
Both the BJP and Congress have turned this election into a battle of personalities, rather than making it a battleground for new ideas by challenging paradigms and encouraging meaningful debates.
Godrej family's division strategy: A model for amicable business succession
What sets the scheme for division apart is its transparency and meticulous planning, setting an example for Indian business families to emulate
Iran-Israel lesson: Effective missile defence is costly and could be risky too
The Israel-Iran conflict holds lessons. As technology improves defences, countries must resist the temptation to use force instead of diplomacy.
It's time for company boards to create technology committees
Such panels need a clearly framed charter of intent to be effective. What exactly they monitor could differ but a common mandate would be to keep watch of emerging trends.
Why is Europe losing the productivity race to America?
Heavy US fiscal stimulus after covid is often cited as a reason, but its unclear how government spending can lift work efficiency. As Europe ponders how to fix its problem, it needs to come up with new ideas for a change.
Sugar rush alert: Nestles infant formula in hot water
An investigation by Public Eye and International Baby Food Action Network found that sugar was added in the companys infant milk-mix meant for less developed markets, but not in the stuff aimed at Europe and the UK. Why so?
