Indian Economy’s Performance – Life after Demonetization..

Indian Economy seems to have braved the impact of demonetisation reasonably well, as per the figures released by MOSPI today. GDP records a growth of 7% for quarter ended Dec'16, lower than 7.3% in Q2 but still far better than the decline projected. However, this may still be too early to take things for granted as figures are subject to revision and there could be mark down subsequently.

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Wind Power – Gain With The Wind…!

The completion of auction for wind power at record tariff of less than Rs 3.5 per unit marks a new beginning for wind power, close on the heels of gains in Solar Power. While this is certainly an important milestone, there would still be challenges ahead and it may be too early to celebrate. A look at the dynamics of wind power..

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Resolving NPAs – Understanding Asset Rehabilitation Agency..

NPAs of the banking sector, especially the public sector continue to remain high, estimated at about 12% for PSBs. While various measures have been taken to resolve the issue, none seems to have worked so far. This has led to the proposal of creating a public sector asset rehabilitation agency (PARA) by the Economic Survey, also supported by RBI. How would PARA operate and can it solve the problem. A look..

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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’. This is “to assess the transitory effects of demonetization on inflation and the output gap”. 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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