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

Economic Notes

Economic Notes
The claim of sharp reduction in effective corporate tax rate to 25.11% does not, in fact, represent any significant reduction in the tax burden that the companies bear at present, and hence, the...
A close examination of the recent trends in government finances suggests that the expenditure pattern of the government does not provide any assurance for the future in terms of building adequate...
The Index of Industrial Production series, the most significant macroeconomic lead indicator, was revised by the Central Statistics Office in May 2017, two years and three months after revising the...
Bringing attention back to the manufacturing sector and to the statistics available to understand it, this analysis presents the differences in size and rates of growth of the sector when measured...
Consumer price inflation in rural areas has been persisting at a higher rate than that in urban areas and the gap between the two has stood at 1.5 percentage points in May 2016. Inflation of both...
In producing the new series, the Central Statistics Office with its rebased National Accounts Statistics has done a studious job of marshalling diverse sources of data and weaving them together into...
The hike in tax devolution to states by the Fourteenth Finance Commission to give a larger fiscal space to the states has meant sharp cuts for centrally-sponsored schemes. Studying the case of...
Price inflation in India as measured by the Wholesale Price Index and the Consumer Price Index has shown diverging trends. While WPI indicates a disinfl ationary situation for 16 months, CPI...
Two recent press releases by the Central Statistics Office substantially revise the new series of National Accounts Statistics. The new releases are more than just routine updates, and entail...
An analysis of the end-November 2015 data release of the Central Statistics Offi ce raises some issues that must be kept in mind while discussing the state of India's economy. If past trends are...
The tax revenues of the union government have surged in the first half of 2015–16, growing much faster than budgeted. Indirect taxes led the rate of growth of tax revenue collections, while direct...
There is concern that corporations have borrowed too much, and that therefore bank balance sheets are strained as well. Contrary to this popular view, it is argued here that the company finance data...
Pulses are an indispensable part of the Indian diet, but ever increasing prices are making them unaffordable for the poor. The persistent gap between demand and supply of pulses is only expected to...
To estimate gross value added for the manufacturing sector, the 2011-12 National Accounts Statistics series follows the "single deflation" instead of the "double deflation" method. In this note, it...
Revisiting the MCA-21-based estimates of the size of the private corporate sector in the rebased National Accounts Statistics, it is argued that the use of a single blow-up factor for non-government...
An analysis of bank lending rates suggests that reducing the lending rate, while important, may not be as critical to reviving investment as it is made out to be. The three interest rate regimes...
The Forward Markets Commission and Securities Exchange Board of India merger may provide a relatively strong regulator, but the move needs to be supplemented with better information and warehouse...
The new series of national accounts statistics raises the estimates of saving and investment, but it also reconfi rms the trend of a decline in domestic saving and capital formation in recent years...
An analysis of the new 2011-12 series of National Accounts Statistics to understand the trends of GDP growth and the sector-wise break-up. Data up to the advance estimates for 2014-15 are explored...
The new series of national accounts released by the Central Statistics Office has made a number of conceptual changes and has tapped new sources of data. This note presents a discussion of the key...
Revisiting an old debate about terms of trade of agriculture vis-à-vis other sectors in the Indian economy, it is argued that the ToT of agriculture has remained favourable for a large part of the...
An analysis of corporate sector earnings and spending reveals that since liberalisation in the early 1990s, Indian companies have become increasingly dependent on foreign inputs, while foreign...
The Reserve Bank of India's latest accounts indicate that the structure of earnings has clearly shifted to domestic sources, particularly from assets. Further, the RBI has made large transfers to the...
Analysing trends in bank deposits between 2008 and 2012, this note argues that bank depositors by and large seemed to prefer to move their money to nationalised banks. Just like any investor,...
The provisional results of the Sixth Economic Census (2013) of establishments in the non-agricultural sector suggest that this is not a census count. A comparison with the National Sample Survey...
This article examines trends in corporate profi tability based on data contained in the Reserve Bank of India's studies. It observes that the profit margin and real return on capital employed came...
Even as measures to modernise and revitalise the financial sector need to be taken, the government should not tamper with the vigilance exercised by the Reserve Bank of India and the Securities and...
The latest Annual Survey of Industries report, released for 2011-12, shows a high growth in the value of output, gross value added as well as employment generation. The ASI data suggests that over...
The US Federal Reserve's March 2014 decision to continue with tapering off of its asset purchases indicates that this may continue until the end of 2015. The effects of the gradual winding down of...
The Central Statistics Office's advance estimates of GDP in 2013-14 place growth in the year at 4.9%. The regular differences every year between the advance and revised estimates of GDP suggest that...
How is it that the United Arab Emirates has become India's largest trading partner in recent years, overtaking the United States, European Union and China? An unusual pattern of two-way flows in gold...
Large Indian corporate firms went on a borrowing spree abroad a few years ago attracted by the lower interests that came on external commercial loans. But sluggish profitability and currency...
Reviewing the policy responses of the Reserve Bank of India over the past few years, it is argued that in recent times the RBI has sent mixed signals to the market. On the one hand a reduction of the...
India's staggering gold import burden is to a large extent the result of liberal policies adopted towards the metal by the government in the post-reform years. Given Indian society's insatiable...
The fourth advance estimates of agricultural production in 2012-13 see only a small change in output forecasts, but the outlook for 2013-14 is for a substantially higher level of foodgrain production...
The Reserve Bank of India has in its attempt to control the exchange rate volatility of the rupee perplexed the market. The short-term measures announced to limit money market liquidity went against...
There is a fear that the current vulnerabilities on the balance of payments front signal another crisis as in 1991. This article analyses the factors underlying the current problems in the BoP and...
With the global recovery nowhere in sight, this note looks at alternative strategies available to India to bridge the widening current account deficit by playing to the strengths of domestic...
The revised RBI guidelines on priority sector lending discriminate against small and marginal farmers and favour corporates involved in agriculture. The guidelines seem to have been drawn up under...
The Reserve Bank of India has at last reduced its discount rate at which it repurchases government securities from the commercial banks, the repo rate. The reduction, however, has been very small and...
After touching a high in 2007-08, total domestic savings have declined. Savings of the household sector have started falling more recently. What are the reasons for this decline?
An analysis of the first advance estimate of kharif crop Production in 2012-13.
A critical discussion of the Reserve Bank of India's Annual Report for 2011-12, which continues to be the central bank's major channel of communication for airing its views on policy. Alongside, a...
There are dark clouds on the external sector front. The current account defi cit touched its widest ever level in 2011-12, foreign exchange reserves are increasingly providing import cover for a...
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