GOI
SoO far, yet so close in Manipur
Recent violence in Manipur illustrates how local incidents can quickly escalate into widespread unrest. The Suspension of Operations agreement has become a focal point of political tension ahead of upcoming elections. Various community groups are clashing over issues of special status and historical grievances. Heightened animosities between the Meitei community, Kuki-Zos, and Nagas have exacerbated the situation.
Poverty low, expectations high: India’s next challenge is creating jobs and driving reforms
Poverty rates in India have decreased remarkably, with expectations rising for future economic prosperity and growth. Initiatives like Direct Benefit Transfer and Swachh Bharat Mission have significantly improved living conditions. However, while the government has driven welfare improvements, job creation remains the role of entrepreneurs.
Welfare pay can't be voter ID-linked
Union panchayati raj minister Rajiv Ranjan Singh announced plans to replace Aadhaar with voter ID numbers for welfare programs. This change would shift the basis for beneficiary identification and payment processing. Critics argue that voter ID is not a universal form of identification and is tied to electoral registration. The proposed switch raises concerns about access for those not on electoral rolls.
Fairness, churn, and India's rise: India has lifted millions out of poverty, but the next big challenge is helping people climb further
India's poverty rate has fallen sharply, with nearly 496 million people moving above the World Bank's lower-middle-income poverty line between 2011-12 and 2023-24. However, the next challenge is to expand economic mobility, improve wages and create opportunities. The article examines why growth, fair access and social mobility matter more than focusing on inequality alone.
SpiceJet’s meltdown: Rs 5,500 crore raised, but where did the money go?
SpiceJet's mounting financial crisis raises serious questions over the fate of more than Rs 5,500 crore raised in recent years, its unpaid dues, operational collapse and regulatory oversight. Despite repeated capital infusions, the airline faces mounting losses and possible bankruptcy, while questions persist over fund utilisation, management accountability and aviation safety.
Pull it, not just for better FPIs: Scrap FPI capital gains tax to boost inflows, strengthen rupee and cut fiscal deficit
Scrapping the long-term capital gains tax could significantly enhance foreign portfolio investment in India. This move would likely lead to a stronger rupee and reduced fiscal deficit for the government. Historical data suggests that foreign capital flows have a direct correlation with the value of the rupee. The elimination of this tax could also support higher valuations and better disinvestment proceeds.
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Make urban legend real: Our cities must become far more business-friendly for India to achieve high per-capita income
India's urban population has grown slowly, with a significant portion living in small rural habitations. The country requires substantial rural-urban migration to boost urbanisation and economic productivity. Urban centres must create favorable business environments to attract new and expanding enterprises. State governments should implement measures to alleviate urban land scarcity and improve labor regulations.
All hands on the deck: Next few months, govt faces a test of political will to take hard economic calls
India is likely to face a host of economic and political pressures due to upcoming elections and external geopolitical factors. Balancing relationships with Iran, the UAE, Saudi Arabia and Israel will be crucial for India's energy security. Political and economic manoeuvres may become necessary to address rising crude oil prices and currency pressures.
Lowering LTCG isn't a magic bullet
A reduction in Long-Term Capital Gains (LTCG) tax could uplift sentiment in India's equity market, especially as foreign investors withdraw. The current landscape is shaped more by external economic influences than tax adjustments. The reinstatement of LTCG has rendered India less appealing compared to rivals like Hong Kong and Singapore. A strategically planned tax cut may provide clearer policy stability for investors while preserving fiscal responsibility.
With G-sec yields rising, countries have no alternative but to increase their bullion holdings
In India yield on T-year G secs has increased by 0.4 percentage points over the same period. Unfortunately, governments are confronting these higher borrowing costs precisely at a time when debt is elevated, with global public debt expected to exceed 100% of GDP by 2030, a level last reached in the immediate aftermath of WW2.
Is India prepared to tackle 369 million cybersecurity incidents and AI challenges ahead?
India experienced a notable increase in cybersecurity incidents which has raised concerns over its infrastructure and talent shortages. The adoption of AI is rising, yet the country lags behind others in global rankings. Challenges related to AI, such as data protection and algorithmic liability, are becoming more complex. To address these issues, comprehensive regulatory frameworks and national legislation are urgently needed.
India's ESOP tax rules need reform to ease employee burden
India’s ESOP tax rules impose tax on unrealised gains before employees receive cash, creating liquidity pressures. Reforming taxation through deferrals or concessional rates could encourage employee ownership and ease the burden.
IDBI Bank sale row: Finance Ministry defends valuation process, says reserve price was not changed
The finance ministry has defended the valuation process used in the IDBI Bank stake sale, saying the methodology and bidding procedure were reviewed and approved by the core group of secretaries on disinvestment. It said Fairfax’s Rs 81-a-share bid was above the benchmark and independent fair-value estimates, while safeguards such as a double-blind process and limited tax indemnity helped maximise value for the government and LIC.
India’s drug pricing policy must balance affordability, medicine availability and pharma industry growth
The Government of India has recently capped trade margins on anti-cancer medicines at 30%. This decision has reignited the ongoing discussion about drug pricing and accessibility. The existing regulatory framework aims to provide affordable medicines while supporting the pharmaceutical industry. Ensuring pricing transparency and targeted interventions can help address excessive margins in the supply chain. The ultimate goal remains to enhance patients' access to quality medicines at reasonable prices.
Anti-cancer medicines: How to protect the patient today without weakening India's healthcare capacity for tomorrow
India should examine trade margins across medicines, medical devices and consumables using a common, scientifically credible method - not a one-size-fits-all formula - to identify where and how intervention is needed. Meaningful stakeholder consultation must form part of this exercise to help design a framework that is both effective and workable. It can ensure that unjustified margins are addressed while recognising legitimate differences in clinical settings, infrastructure, safety requirements, geographical reach and the cost of delivering quality care.
West Bengal moves to depoliticise teachers, but schools need more than a ban
The West Bengal government has introduced a prohibition on newly appointed schoolteachers from participating in political activities and elections. This decision is aimed at reducing political influence in education and improving classroom experiences for students. For these efforts to be meaningful, it is crucial that the government enforces these rules consistently and avoids selective enforcement.
Hit & run law, stop running from it
Parliament has established Section 106(2) to impose strict penalties on hit-and-run drivers; however, its enforcement remains stalled due to safety concerns for drivers. To address this, the government must develop secure protocols for reporting accidents, ensuring drivers feel safe. It is vital for public trust that this law is implemented without further delay, allowing victims to seek justice and accountability.
India’s steel future depends on breaking its costly coal habit
India plans to significantly increase its steelmaking capacity to support its development goals by 2047. The National Steel Policy proposes a shift from coal dependence to green hydrogen for production processes. This transition aims to reduce the vulnerability of steelmakers to volatile coking coal prices and enhance cost predictability. Moreover, the government is expected to promote long-term contracts for green steel to secure investments.
Prevention CERT-Inly better than cure
India is responding to cybersecurity challenges posed by the recent eMudhra incident and PHP vulnerabilities. Government agencies are conducting audits and investigations to strengthen digital security. The country is experiencing heightened cybersecurity risks due to its digital transformation and existing framework gaps. There are also concerns about unutilized funds and a shortage of cybersecurity talent. A broader approach is needed for transformative improvements in managing cybersecurity effectively.
Yes Bank AT-1 bonds: Who will examine administrator's role?
The Supreme Court struck down Yes Bank’s Rs 8,415 crore AT-1 bond write-down as unlawful. The judgment raises questions over the administrator’s conduct and RBI’s role in examining accountability under the applicable legal framework.
Don’t bank on RBI alone: The investor protection gap in India’s banking system
RBI imposes strict regulations on banks to ensure transparency for depositors and investors. However, listed banks often fail to provide timely disclosure of crucial information to the market. The governance of Public Sector Banks (PSBs) also faces scrutiny due to government influence on board appointments and salary structures. Lack of transparency in bank resolution processes raises questions about RBI's dual role as regulator and resolver.
More bugs out there: PHP2Shell is just the tip of the internet’s old-code iceberg
On Wednesday, critical vulnerabilities in PHP were publicly revealed, impacting a vast number of websites. The discovered flaws pose serious security risks, prompting urgent updates from website administrators. Many organizations swiftly shut down their services to mitigate potential breaches from the vulnerabilities. Experts emphasized the importance of identifying PHP versions and applying necessary patches immediately. They also recommended increased funding for PHP development to prevent future risks and ensure security.
India must avoid copying China's aggressive tax policies on private wealth and offshore assets
Developing economies often look to the US and China for cues on taxation, infra spending and policy. India, for one, must steer clear of emulating such tax policies. China's circumstances are materially different from India's. India's economy is expanding at a healthy pace, and housing is rising steadily.
Return of Mrs G's 'foreign hand': Is Mohan Bhagwat's warning of a foreign hand behind protests a genuine concern or an old political tactic?
Mohan Bhagwat warns of foreign conspiracies behind protests in India, echoing past political tactics to delegitimize dissent. While he claims to embrace religious diversity, critics question his commitment to action against communal violence and the protection of minority rights, highlighting a discrepancy between his words and deeds.
Tax matters, as does capital: Is it time for India to reconsider its LTCG tax policy on listed equities amid rising global competition?
Debate on long-term capital gains (LTCG) tax and securities transaction tax (STT) has gained momentum, with the government recognizing its significance. With foreign portfolio investors withdrawing substantial funds from Indian equities, the impact of tax regimes on investment behavior and market liquidity warrants deeper analysis. Reforms are necessary to enhance India's competitiveness in attracting global capital.
Data on value chain emissions will help
India is set to implement a requirement for exporters to report emissions data across their entire value chains. This initiative presents challenges, especially for micro, small and medium enterprises (MSMEs), which struggle to track emissions. Large companies are expected to take the lead in this process, developing systems for reporting. Collaboration among stakeholders, including government and industry, is crucial for supporting MSMEs and ensuring compliance.
Don't stunt the stent, med devices sector
Three coronary stent models from Meril Life Sciences were withdrawn from the Sri Lankan market due to performance issues. The National Medicines Regulatory Authority conducted an investigation that revealed critical failures. The Central Drugs Standard Control Organisation is auditing manufacturing facilities to address quality concerns. Stricter regulations and robust post-market surveillance measures are necessary to ensure patient safety.
Pivot to Privatisation 2.0: Why IDBI Bank’s sale should rev up India’s push to privatise remaining non-strategic PSBs and PSUs
Last week, the Cabinet Committee on Economic Affairs approved the sale of IDBI Bank's majority stake. The stake, held by the Government of India and LIC, will be sold to Fairfax Financial Holdings Ltd. This decision is part of the ongoing privatisation programme aimed at modernising the Indian economy.
Early Diwali dhamaka: With the IDBI strategic sale to Fairfax, GoI has taken a giant step in the disinvestment pathway
IDBI Bank's sale as part of a disinvestment strategy provides ₹26,000 cr to the government during economic challenges. Government of India retains a 15% stake, indicating potential future market sales. The bank's strong performance is reflected in its improved financial metrics and management stability. Discussions about privatization in the banking sector may arise despite this sale not being privatization.
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