RBI's tricky strategy to ease market's pre-Fed jitters.
'A balanced head plus heart approach would be a full opening up of the economy including manufacturing and internal travel in the country but excluding COVID-19 hotspots,' recommends Jaimini Bhagwati.
'Increased allocations for MNREGA could have provided the much needed push to rural demand and consumption at a time when recovery continues to remain uneven.'
Assocham expressed concern over the precarious situation that the manufacturing sector is in, observing that if the trend does not reverse with monetary and fiscal measures it would be difficult for the industry to generate jobs.
High fiscal deficits raise inflation which hits the lowest income and salaried classes.
'Earlier-than-expected tapering from the US, followed by rate hikes, and locally, a potential third wave, which mimics the second wave in terms of severity.'
The Federal Reserve must now ensure that higher inflation doesn't derail the US recovery.
It's crucial for Modi to make India an easier place to do business.
Business confidence remained positive in August and was driven by upbeat forecasts of sales, an expected improvement in demand and promotional activities
The global economy may just be entering a new phase.
Politically, it will not be easy for Modi to take hard decisions such as raising fuel prices in the first budget, given the risk of higher inflation.
'A broad-based revival of private sector investment was likely in 2018-19 after businesses had successfully made the switch to the GST.'
Sahil Kapoor of Edelweiss Retail Capital Market Research says that setting up a monetary policy committee should have been the first step. And the central bank could have moved towards a formal inflation targeting mechanism after the processes and data sets are in place.
And why markets could give up 25 per cent of all these gains made since March 2020
It is time to take a few macroeconomic risks to kick start the growth.
'If some measures are implemented quickly, they can help revive growth.'
'Power sits lightly on Arun Jaitley's shoulders. Just because earth-shaking election results have brought his party in power, he has not gone recklessly ambitious. "Too soon, too fast" is not what he likes,' says Sheela Bhatt/Rediff.com about Budget 2014.
The GST has been a great achievement, but it does suffer from weaknesses, says Chief Economic Adviser Arvind Subramanian.
'Narendra Modi has had very good luck. Firstly, the fall of oil prices. You don't get that very often in your life and you certainly don't get that often when you are in government.' 'Secondly, the fantasy of Indian reforms has led to very strong capital inflows to have made his job much, much easier.' 'You ride the winds in times of fortune and he hasn't done that. At least, not yet.' 'Those winds of fortune which are blowing your way can certainly turn around easily. There are quite a few headwinds coming up. He may well, history will show, have missed the opportunities that existed.'
A number of significant linkages between rainfall and economic outcomes have policy implications.
Any change in rates would mean more volatility; else, poll outcome-fuelled rally expected to continue.
RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.
