Analysing India’s External Debt…

Even though rising level of forex reserves continues to get the limelight, a data not looked at adequately is the rising level of external debt. Over last ten years, India's external debt has increased by as much as three & half times, much faster than the increase in forex reserves. A look at India's external debt performance and characteristics..

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Understanding GAAR (General Anti-Avoidance Rules)..

Consider a situation where a foreign entity provides loan to an Indian company and receives interest which is not fixed but linked to profits. Or consider a treaty between India and country X whereby sale of shares in an Indian company held by an investor from country X shall be taxed only if the shares sold are more than 10%. The investor floats two subsidiaries and sells 9.9% shares through each of them. Are these tax mitigation, tax evasion or tax avoidance..??

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Monetary Policy – From “Accommodative” to “Neutral” stance..

Belying the expectations of a rate cut, the monetary policy committee (MPC) has not only decided to keep the rates unchanged in its meeting today but more importantly, has shifted its stance from "accommodative" to "neutral'. The shift marks a significant reversal of policy as it had maintained "accommodative' stance all through the year. A look at the reason for the same..

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Budget – Understanding Deficit Terminologies…

The most important and the first number any economist looks at while analyzing the budget is the fiscal deficit. However, other than that, budget also throws up other deficit numbers.. So what all are these deficits and their importance?? A brief look..

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Budget 2017-18 – From ‘Swachh Bharat’ to ‘Clean India’..!

The union budget for the year 2017-18, presented today by the finance minister makes no big bang announcements but the undercurrent is loud and clear. The society - individuals and corporate - has to become more transparent and more accountable; in FM's words, a move towards 'clean India'. A look at some of the highlights..

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Towards Energy Security – India’s Strategic Oil Reserve…

The agreement between India and UAE to facilitate filling of crude oil strategic reserve is diplomatic coup of sorts, for India as it gets a commodity so precious to the nation and so much in abundance with UAE. A look at the concept of strategic oil reserves and India's preparedness..

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Banking Sector Interconnectedness in India…

The interconnectedness of banking and financial sector is not widely understood or discussed, yet a high risk issue. The rapid spread of contagion during financial crisis in 2008 was primarily due to the fact the global financial market has become highly interconnected. But how interconnected is Indian banking sector within itself and with the overall financial sector. A look at the same..

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