In its recent monetary policy document, the Reserve Bank of India has imposed strict maturity conditions on foreign portfolio investment in debt to get a better handle on risk. But a fiscal solution would be more elegant and effective
The RBI’s two-pronged strategy to protect the economy from tapering-led volatility discourages unproductive external borrowings and prods foreign portfolio debt investors to think long-term. There's another vexed issue: the IMF has sounded a cautionary note on the rising number of foreign currency debt laden Indian firms
Fake currency, widely in circulation in India, has become a serious threat with counterfeiters taking advantage of the election season to pump in more money. India has implemented counter-measures, but must utilise advanced techniques and sensitise local law enforcement machinery to counter the menace
The recent statement by the governor of the RBI that foreign banks might be allowed to take over Indian banks, has rekindled the debate on the status of foreign banks. What has prompted the RBI’s new position and how does it weigh against the existing policy landscape? Why are foreign banks waiting and watching?
The foreign exchange market is considered the most liquid and transparent in the world. However, recent investigations into alleged manipulation of the foreign exchange rates is a reminder that transparent exchange-based systems alone are not enough to ensure fairness
India often finds itself in the right place at the wrong time or vice versa, as our dogma of non-alignment trumps honest calculations of self-interest in policy-making – rendering it unfavourable. The national interest, hence, calls for selective alignment on some issues with Washington and on others with Beijing
The economic mismanagement by the ruling UPA in the past few years – by putting politics and polls ahead of economy and prosperity, and slavish obedience to political masters – has created an environment of crisis and desperation in India. Where did the country’s so-called economic ‘dream team’ go wrong?
Tarun Kataria, CEO, Religare Capital Markets India foresaw the decline of the rupee to the 60 mark against the U.S. dollar several months ago. He speaks to Gateway House’s Manjeet Kripalani about the impact the rupee crisis will have on the economy and consumers and how the government can reverse the situation
Keeping subsidiaries of multinational corporations publicly-listed in India exposes minority shareholders to the risk of unfair treatment by favouring the majority shareholders. In some cases, it leads to transfer pricing transactions that hurt the country’s revenue. Delisting MNCs is one way to address this problem
Is India's growing external debt a cause for concern? Are India's public sector banks too big to fail? Gateway House interviews former Whole Time Member of SEBI, Prashant Saran, to discuss the health of India's financial sector.