View: India’s new bank for infra financing is clearly mandated to have a ‘developmental role’

And it finally gets an institutional structure that can be a receptacle to monetise global goodwill into friendly funding from all over the world. Synopsis As Nirmala Sitharaman let us know on Tuesday, it is to start with an equity base of Rs 20,000 crore — the largest-ever institutional startup — plus a one-time Rs […]

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India favors retaining RBI’s inflation targeting band

The Centre is likely to leave the inflation targeting band for its central bank unchanged, according to people familiar with the matter, while policy makers remain focused on rising prices amid the rebound from the pandemic. A consumer-price inflation band tracked by the Reserve Bank of India is likely to be retained at the current […]

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Second phase of FAME India Scheme focuses on supporting electrification of public transportation: Ministry

The second phase of FAME India Scheme focuses on supporting electrification of public and shared transportation and aims to support through subsidies electric vehicles, including buses, passenger cars and two-wheelers, Parliament was informed on Tuesday. In a written reply in the Lok Sabha, Heavy Industries and Public Enterprises Minister Prakash Javadekar said at present, Phase-II […]

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Privatisation of PSU banks will compromise financial security: Congress MP in Lok Sabha

Congress MP Ravneet Singh on Tuesday said privatisation of public sector banks will compromise financial security as private sector banks will extend credit to large businesses and not think about the poor. He said 10 lakh employees of 9 public banks are on a strike to protest privatisation and asked the Government to start dialogue […]

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Government introduces insurance amendment bill in Rajya Sabha

The government on Monday introduced a bill in Rajya Sabha to amend the Insurance Act, 1938 and raise foreign direct investment cap to 74% from 49%. The Insurance Amendment Bill, 2021 was introduced by Finance minister Nirmala Sitharaman. Last week, the Cabinet had given its nod for the same. In her FY22 budget, Sitharaman had […]

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CEA Krishnamurthy Subramanian explains the economic rationale behind Modi govt’s policy response to Covid

How did India handle the previous two economic crises — the Asian and the global financial crises? What can we learn from them to understand the rationale behind GoI’s policy response to the Covid crisis? Start with three key propositions. First, when only aggregate demand is raised without any change in aggregate supply, both price […]

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Monetisation drive: Govt targets Rs 1.3 lakh crore from rail, telecom assets

(This story originally appeared in on Mar 12, 2021) The government is targeting half its asset monetisation target of Rs 2.5 lakh crore from railways and telecom, while scouting for new areas, including warehouses to store foodgrains, coal and other mines and tourism infrastructure, to mop-up resources that are proposed to be deployed to create […]

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Five uncertainties for the world’s fastest-growing major economy

There’s plenty of good news on projected demand for jobs. But net impact on account of three factors is crucial. One, re-employment chances of those who lost jobs in 2020 — and are losing even now in 2021. Synopsis Let’s acknowledge that even with strong double-digit growth in FY22, India’s GDP as FY23 begins will […]

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CPSE assets sale to bring about paradigm shift in infra: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said monetisation of CPSE assets is based on the principle of value creation for the government and investors and would bring about a paradigm shift in infrastructure augmentation and maintenance. Chairing the National Workshop with the states/UTs on Asset Monetisation organised by Niti Aayog, the minister sought the collaboration […]

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CM Y S Jagan Mohan Reddy seeks appointment with PM Modi to discuss options to revive fortunes of Visakhapatnam Steel Plant

Reiterating the demand that the Centre withdraw the move to sell Visakhapatnam Steel Plant, Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Tuesday sought Prime Minister Narendra Modi‘s appointment to discuss options to revive the fortunes of the Navaratna company. The Chief Minister said he would lead an all-party delegation and representatives of […]

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