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Best of BS Opinion: Economic shifts, environmental hopes, policy crossroads
Abhijeet Kumar New Delhi
In a significant move to stimulate economic growth, the Reserve Bank of India's Monetary Policy Committee reduced the policy repo rate by 50 basis points to 5.5 per cent and the cash reserve ratio by 100 basis points in phased stages, injecting ₹2.5 trillion into the banking system. While inflation eased to 3.2 per cent in April, the MPC shifted its stance from 'accommodative' to 'neutral,' indicating limited room for future rate cuts. The GDP forecast remains at 6.5 per cent, but the RBI stressed that achieving higher long-term growth would require structural reforms beyond monetary tools.
Launched on World Environment Day, the Aravalli Green Wall Project aims to restore 700 km of degraded terrain across four states. Inspired by Africa's Great Green Wall, the plan involves reviving native flora and water bodies to enhance India's carbon sink. However, challenges remain due to ongoing illegal mining and encroachments. As our second editorial highlights, without stronger governance and interstate coordination, experts warn the project could falter, repeating past mistakes seen in the Western Ghats conservation efforts.
In his column, Ajay Shah writes that India's economic prospects depend not just on rate cuts but on five strategic levers: trade liberalisation, soft monetary policy, structural reform, capital account liberalisation, and a weaker rupee. He notes that weak private investment and capital controls have stifled India's global competitiveness. While India benefits from geopolitical realignments like the China+1 shift, FDI inflows remain low. Trade deals with the UK and potential pacts with the US and EU offer an opportunity, but without bold reform, India risks falling short.
Meanwhile, Sunita Narain cautions that India's EV transition is progressing too slowly to meet its climate and urban mobility goals. While electric three-wheelers show growth, adoption in other segments lags, and urban congestion worsens. She stresses that counting electric vehicles is not enough, cities must expand public transport, reduce private vehicle use, and align EV policy with air quality and mobility planning.
Finally, Ted Widmer reviews John Hancock: First to Sign, First to Invest in America's Independence by Willard Sterne Randall, a biography that revives the legacy of the often-overlooked Founding Father. The book underscores Hancock's role in financing and steering the revolution, while also exploring the complexities surrounding his political and social legacy.
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