ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Soumya Kanti GhoshSubscribe to Soumya Kanti Ghosh

Refinancing West Bengal

With a debt burden at around 37% of the state gross domestic product, which is almost twice the average of other states, West Bengal's finances are in a precarious situation. The primary reason for this is the state's inability to realise its own revenue potential - West Bengal's own tax revenue to state domestic product ratio is the lowest among all Indian states. The state also uses borrowings to finance its non-plan expenditure. The state government now wants the centre to restructure its debt and suspend its interest payments for three years. Analysing different scenarios, this paper evaluates whether such a relief package is necessary, or even the best way of avoiding a debt trap.

Estimating Loss Given Default for Indian Markets

The Basel II norms allow banks to calculate credit risk capital requirements by the standardised or internal ratings based approach. Banks using the latter need to develop methods to estimate its key components, one of which is the loss given default. This article discusses some of the issues in the estimation of the loss given default for corporate exposures in the Indian context.

Basel Norms, Indian Banking Sector and Impact on Credit to SMEs and the Poor

The present paper is an attempt to review the impact of Basel I and II norms, dealing with international bank regulation in terms of capital adequacy and supervision, on credit flows to the SMEs and the poor in India.

MonetaryPolicy, Sterilisation and Capital Mobility

The RBI faces a dilemma. With the progressive liberalisation of the capital account, there will possibly be increased sterilisation activities by the bank. However, going by the experiences of the east Asian countries, the apex bank will be hard-pressed to ensure the success of such sterilisation. So whether or not to liberalise the capital account will remain an unanswered question.

Apparel Exports in Post-MFA Regime

The lifting of all quotas on textile trade from January 1, 2005 will offer significant export opportunities for the Indian apparel industry. However, the extent to which India can utilise them will hinge on its ability to compete effectively with leading rivals like China. India also needs to diversify its export basket in tune with import demand in the US and other importing countries.

Capital Account Liberalisation in India

This study attempts to explore the consequences for India of opening up the capital account. It builds a model to establish a formal link between capital flows and economic growth in the Indian context and reconciles the results from this model with the possible end-use of capital flows into different sectors.

RBI Intervention in the Forex Market

The use of a binary dependent variable framework for estimating the impact of daily forex market interventions by central banks is well known in developed countries. However, there are practically no such studies for developing countries, including India. This paper attempts to model the patterns and consequences of RBI's daily intervention in the forex market in a simple binary dependent variable framework
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