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Saturday, July 13, 2024
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MacroSutra

Shrinking gap between average rural & urban consumption spends good news, but inequality persists

Consumption inequality between top & bottom 5% of population is more pronounced in urban India, latest Household Consumer Expenditure Survey says. Widest gap in rural Rajasthan & urban Haryana.

Indian economy showing solid growth, but these must be new govt’s top 5 priorities to sustain momentum

The outcome of the general elections has taken a surprising turn, differing from both exit poll predictions and market expectations. However, the agenda for...

India’s trade deficit improved in 2023-24, but it needs to watch its FTAs to fix persistent imbalances

Despite contraction in exports, India’s merchandise trade deficit improved in 2023-24, owing to steeper drop in imports. However, the trade deficit with China & Russia widened.

Indian banking sector's boom continues, but low deposit rates for some banks point to future risks

To avoid high credit-deposit ratios, banks need to maintain healthy deposit base — a difficult task considering the competition they face from MFs & physical assets like gold, real estate.

Don't jump at 1st unemployment number you see. Different databases yield varying but valid results

Govt & pvt sector CMIE surveys, the 2 keenly watched sources of employment data in India, differ in terms of their definitions of households, reference period & sampling methodologies.

Surge in lending not alarming yet, but India needs to start watching out for excessive credit growth

Unhindered growth in lending has been associated with financial crisis, but monitoring a simple metric like credit-to-GDP gap could help identify early indications of an impending crisis.

How poll-bound states are grappling with price rise, a factor likely to impact voter sentiment

Of 10 major states going into polls in 3rd phase, Bihar, Gujarat, Karnataka & UP saw inflation higher than India average. Policy priority for new govt in these states would be to ease this.

Central banks on buying spree, strong retail demand — what’s fuelling the big gold price rally

Gold’s ability to hold value in times of political and economic uncertainty makes it a favoured asset in central bank reserves. It is considered a long-term hedge against inflation.

India set to grow faster than expected, but geopolitical tensions, inflation & global debt loom

Global growth has surprised on the upside, but fresh sources of risk are emerging. Initial signs of an uptick in commodity prices are already visible.

In India, households optimistic about state of economy despite rising debt, expect inflation to ease

There also seems to be preference towards physical assets. And while there's good news on headline employment numbers, there has been an increase in share of low-productive jobs.

On Camera

Zomato has become the brand ambassador for food cheating between couples

Zomato’s new ‘order delete’ feature is teaching young people to pull off a nearly perfect lie in front of their parents and handing spouses the perfect weapon for food infidelity.

‘Robot tax' for AI-induced job loss & ‘wealth tax' on vacant land — RSS-affiliate SJM's Budget wish list

In pre-budget meeting held in June with Finance Minister Sitharaman, Swadeshi Jagran Manch suggested incentivising those generating more employment & measures to control food inflation.

BrahMos a wonderful symbol but Philippines lacks capability to operate, says Ashley Tellis

If a country did not have C4ISR capability, having a missile was a wonderful symbol but not of much operational use, says former senior adviser to US state department.

Modi's new universe: the normal irritants of democracy & awkward chai with Rahul Gandhi

Changed reality for Modi govt in its 3rd innings is by no means rise of a new phenomenon. It's a return to old normal where even majorities had to routinely wrestle with storied million mutinies.