Column

No More Half-Measures

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The constraints in the financial system have further worsened the monetary tightness. As growth continues to slow and inflation stays below the target, interest rates may keep falling, but likely not fast enough to revive growth quickly.Written by Neelkanth Mishra | Updated: April 17, 2019 7:38:21 am (This was published in the Indian Express: link) … Read more

Why elections don’t impact markets

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Besides the difficulty in predicting election results, there are four other reasonsNeelkanth Mishra | Last Updated at April 3, 2019 00:06 IST (This was published in the Business Standard: link) What do you think will happen in the elections? This is a question that comes up in every investor meeting these days. I usually start … Read more

What can be done to revive growth?

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Economic growth solves many problems. Can lower interest rates help reverse the slowdown?Neelkanth Mishra | Last Updated at March 6, 2019 01:08 IST (This was published in the Business Standard: link) Debatable as the analytical utility of quarterly GDP statistics in India may be, the continuing drop in growth rates as recently reported for the … Read more

And now the inevitable pickup in investments

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A 7 per cent GDP growth rate may be lower than what India aspires for, but over a five-year horizon this means 40 per cent higher demandNeelkanth Mishra | Last Updated at February 7, 2019 23:49 IST (This was published in the Business Standard: link) After a long period of weakness, investment activity in the … Read more

Managing the stimulus

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The income transfer scheme was the highlight of the budget. But its success will need deft manoeuvring.Written by Neelkanth Mishra | Updated: February 5, 2019 1:26:58 am (This was published in the Indian Express: link) Like in each of the previous two years, the run-up to the budget this year was rife with fears of … Read more

Restoring rural cash flows

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Low food prices hurt cash availability in the rural economy, and loan waivers make that worseNeelkanth Mishra | Last Updated at January 22, 2019 21:25 IST (This was published in the Business Standard: link) “Bazaar mein paisa nahin hai” (there is no liquidity in the market) has become a common refrain of distributors and wholesalers … Read more

Weaker growth, better mix

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Even as headline GDP growth slows, the pickup in investments is making it more balancedNeelkanth Mishra | Last Updated at December 4, 2018 23:30 IST (This was published in the Business Standard: link) The economy seems to have ‘slowed’ earlier than most forecasters expected, and even before the funding freeze for non-banking financial companies (NBFCs) … Read more

A challenge and an opportunity

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As concerns move from liquidity to solvency of select NBFCs, uncertainty is the bigger challengeNeelkanth Mishra | Last Updated at November 7, 2018 22:57 IST (This was published in the Business Standard: link) The credit outstanding with Non-Banking Finance Companies (NBFCs: in this article this includes the Housing Finance Companies or HFCs as well) was … Read more

An agenda for energy

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India needs to bring structural changes, reset targets, influence global policy and choices.Written by Neelkanth Mishra | October 23, 2018 12:11:18 am (This was published in the Indian Express: link) You need energy to grow. This is as true for economies as it is for humans. Whether it is the use of machines in a … Read more

Prioritise attracting foreign capital

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Inflows as a share of GDP are at 2002 levels; policymakers must address structural concernsNeelkanth Mishra | Last Updated at October 2, 2018 23:00 IST (This was published in the Business Standard: link) Like a company that needs external capital to grow faster than it would just with its own savings, maintaining a steady inflow … Read more