The Central Board of the Reserve Bank of India (RBI) today decided to transfer a sum of ₹1,76,051 crore to the Government of India (Government) comprising of ₹1,23,414 crore of surplus for the year 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted at the meeting of the Central Board today. It may be recalled that the RBI, in consultation with the Government of India, had constituted an Expert Committee to Review the Extant Economic Capital Framework of the Reserve Bank of India (Chairman: Dr. Bimal Jalan).
The author is a noted media academic and columnist and is currently the Pro-Vice-Chancellor of Kolkata based Adamas University. He was earlier the Media Dean of Symbiosis and Amity Universities, Whistling Woods and Pearl Academy. This piece is based on his talk in the CII Higher Education Conclave in Kolkata on August 17 last on Innovision India.
With economic sentiment in the eurozone worsening rapidly, the European Central Bank is widely expected to announce a robust package of additional stimulus measures at its next meeting on September 12. But although the ECB’s monetary policy has in general been insufficiently expansionary (reflected by persistently below-target eurozone inflation), now is not the right time for fully-fledged monetary-policy easing, including a return to quantitative easing (QE).
It is now widely known that the Indian economy has posted around 5% growth in GDP in the last quarter and the projections are bleak for the next three quarters of this financial year. SENSEX was 800 points down on Sept 4 and NIFTY 2% decline, worst fall of 2019. Some 8 core areas like power and steel posted 2.1% growth in the last quarter. The slowdown was evident over the last 6 quarters but not recognized or highlighted in an election year so far.
It is heartening to see that increasingly university grads in India are looking at entrepreneurship as a viable and desirable career path to productively use their skills and energies. Sometimes they jump onto the bandwagon immediately after passing out and sometimes after a few years of "learning the tricks of the trade at someone else's cost". The 'Heroic Entrepreneur' syndrome of the garage to a billion-dollar company made a global legacy thanks to many like Mark Zuckerberg (Facebook) is a major point of motivation.
This year, the evidence that global warming is occurring, and that the consequences for humanity could be severe and potentially catastrophic, has become more compelling than ever. Record global temperatures in June and July. Unprecedented heatwaves in Australia and India, with temperatures above 50°C. Huge forest fires across northern Russia. All of these things tell us that we are running out of time to cut greenhouse-gas emissions and contain global warming to at least manageable levels.
Venezuela remains in free fall. Home to the world’s largest proven oil reserves and once Latin America’s wealthiest country, it is now ravaged and suffering complete economic collapse. GDP has fallen 54% from its 2013 peak, the second-largest drop recorded in modern history, according to the Institute for International Finance.
The Business Roundtable, an association of the most powerful chief executive officers in the United States, announced this month that the era of shareholder primacy is over. Predictably, this lofty proclamation has met with both elation and skepticism. But the statement is notable not so much for its content as for what it reveals about how US CEOs think. Apparently, America’s corporate leaders believe they can decide freely whom they serve. But as agents, rather than principals, that decision really isn’t theirs to make.
The Prime Minister Narendra Modi addressed the nation on Kashmir issue, speaking the right words, echoing assuaging sentiments, and calling for peace and development. Here are his top ten statements, and the counter questions on them.
August of 2019 started with a rude shock as the government of India spoke of a perceived threat of Pakistani backed terrorist attack on Amarnath Yatra and cancelled the peaceful yatra that was in progress. Thereafter, the government gave an unprecedented advisory for all outstation students, tourists, yatris etc to leave Kashmir valley, and such a strong decision was not taken even during the height of militancy in Kashmir in 1970s and 1980s. A build-up of 35,000 armed troops was done in addition to 50,000 army-men already there, and another 8000 airlifted on August 5.
The United Kingdom is now legally committed to reduce net greenhouse-gas emissions to zero by 2050. Opponents in Parliament argued for more cost-benefit analysis before making such a commitment; and Nobel laureate economist William Nordhaus argues that such analysis shows a much slower optimal pace of reduction.
As the nominee to succeed European Central Bank President Mario Draghi in November, Christine Lagarde may be hoping that her job will be somewhat easier than that of her predecessor. Yet the opposite is likely to be true. Though Draghi was tasked with guiding the ECB through years of crises, Lagarde will have to pursue eurozone reforms at a time of deepening polarization among member-state governments. It will take all of her skills as a political mediator, crisis manager, and effective communicator to safeguard the ECB’s independence and effectiveness.
If indications of disappointing economic growth in the eurozone are confirmed, the European Central Bank will loosen monetary policy further in September. Last week, outgoing ECB President Mario Draghi signaled a further likely cut in the ECB’s rate on commercial banks’ overnight deposits with the central bank, which is already -0.4%. In addition, the ECB is discussing a new program of asset purchases.
The United States is enjoying the longest economic expansion on record, surpassing the decade-long growth run between 1991 and 2001. And yet, while most standard indicators – the unemployment rate, growth in non-farm payroll jobs, the number of job openings – imply a vibrant labor market, for too many Americans, the good times don’t feel particularly good. Wage gains for most workers have been stubbornly disappointing, barely keeping up with the cost of living; and more than 4.3 million workers who want full-time positions can find only part-time jobs.
When the United Kingdom eventually leaves the European Union – assuming it does – it will take Europe’s biggest capital market with it. The loss of the City of London could drive the EU’s 27 remaining members to pursue an inward-looking strategy for managing their capital markets. But, as we argue in a new policy brief for the Centre for European Reform, the EU27 would be far better off keeping those markets open to – and, indeed, integrated with – London and the rest of the world.