Thursday, February 29, 2024
NMDC’s lust for foreign gold is mysterious indeed NMDC rushes to seek gold overseas, when goldfields and mine development are pending in India. RN Bhaskar On 5 November, NMDC made an unusual announcement – captured by Reuters (https://www.reuters.com/markets/commodities/indias-nmdc-subsidiary-legacy-iron-ore-mine-gold-australia-2023-11-05/).  It said that it...
Loans will continue to rise if unemployment is not eased RN Bhaskar Last week India’s central bank, the RBI, revised and tightened norms for borrowings, raised risk weights for personal loans and credit cards.  That will make the cost of borrowing...
The politics and economics behind the two DFCs RN Bhaskar By any reckoning, the dedicated freight corridor (DFC) idea was a great concept. Immensely relevant As J M Baxi, noted consultant, states (https://www.jmbaxi.com/newsletter/issue-xxvi/dedicated-freight-corridor.html), “The existing trunk routes of Howrah-Delhi on the Eastern Corridor...
Can the government be wiser than the markets when it comes to capital allocation? By RN Bhaskar Economists are generally agreed that governments can be terribly poor in allocation of resources for economic development. Yes, there are exceptions.  When a nation is...
Will debt spur India’s GDP growth this time despite textiles languishing? RN Bhaskar On 31 October, 2023, the RBI governor, Shaktikanta Das, stated that the growth momentum in the economy continues to be strong, and that the GDP number for the...
Derivatives, USA and Armageddon By RN Bhaskar In a way, the world has been too gentle with the US. It has allowed that country to play around with other people’s money, to create and abrogate treaties at will, to stoutly deny...
Splurge even if you are going bankrupt RN Bhaskar Most economists agree that governments can either control interest rates, or exchange rates.  They cannot do both.  If the government controls interest rates to tamp down inflation, then the repercussions will be...
India stunts its middle-class growth RN Bhaskar Not a month passes by in India without eulogies being paid to this country’s growing middle class.  This is important for several reasons.  The middle class has purchasing power.  The greater the number of...
Health issues smothered by wealth concerns - medical education is the casualty RN Bhaskar On 22 September the country’s leading publications stated that the National Medical Commission (NMC) had barred Tamil Nadu from adding any new medical seats (https://www.hindustantimes.com/india-news/nmcs-new-guidelines-may-have-adverse-impact-on-tamil-nadu-experts-101695756143484.html). The result was...
Policy Watch Financial traps through Aadhaar and NPCI RN Bhaskar In the last week of September, government officials were rudely shaken by questions raised by Moody's Investors Service regarding the reliability of Aadhaar, specifically concerning biometric technology's effectiveness in India's hot and...