Latest news with #AWorldinFlux:India'sEconomicPriorities
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Best of BS Opinion: Soggy dribbles in finance, films, and diplomacy
There's something oddly thrilling about playing football in the park when it's raining heavily. You know it's not the ideal setting as every pass splashes water, every dribble slows down as the ball skids unpredictably across the soggy grass. But somehow, the game goes on. Strategy shifts. You focus more. Every movement demands improvisation. The mess, the friction, and the lost grip, it all becomes part of the play. Today's writeups hint at something similar. Institutions, industries, and individuals navigating a slippery, waterlogged pitch — trying to dribble ahead, adjusting each move to the terrain beneath. Let's dive in. Take India's state finances. A Crisil report shows revenue bouncing back slightly, with GST and liquor excise pulling their weight, but petroleum taxes dragging like waterlogged boots. Despite the slip-and-slide, states have kept their fiscal balance mostly intact. Yet deeper puddles remain: heavy dependence on the Centre and a debt-to-GDP ratio still high, notes our first editorial. Reform now means finding better studs: tighter GST compliance, digital tax trails, and predictable federal transfers. The game is on, but the pitch is far from ideal. In cinema too, the ball's taking unexpected turns. Aamir Khan's move to YouTube's pay-per-view model isn't just disruptive, it's democratic, highlights our second editorial. It bypasses uneven theatre access and expensive OTT subscriptions, bringing big films to small screens at Rs 100 or less. But success here hinges on how well creators learn to play on mobile-first grounds, use AI dubbing, and price smartly. If they can adapt, this could be the rain-slick breakthrough the film industry didn't know it needed. Meanwhile, on the foreign policy field, R Jagannathan argues India must stop kicking the ball around passively. Modi's rapport with world leaders may look good in photo-ops, but it hasn't kept adversaries from pushing forward. As geopolitical puddles deepen (Ukraine, Gaza, China), India must build influence through strategy, not symbolism. Think of it as learning to pass not just wide, but wise. And in corporate India, the Tata Trusts have moved early to back N Chandrasekaran, like a captain handing the armband before kick-off, writes Nivedita Mookerji. This preemptive support is not just procedural, it's tactical, especially as Tata Sons faces decisions on shareholding exits and RBI-mandated listings. It's a slippery pitch, and Tata seems determined to control the midfield. Lastly, L aveesh Bhandari reviews A World in Flux: India's Economic Priorities. Essays in Honour of Shankar Acharya, a collection of essays honouring Dr Shankar Acharya, thinkers reflect on economic playbooks past and future. While celebrating Acharya's policy genius, the book, edited by Amita Batra and A K Bhattacharya, also challenges today's players to update their formations for a world where climate, inequality, and politics increasingly shape the economy.
&w=3840&q=100)
Business Standard
27-07-2025
- Business
- Business Standard
Private sector investment hasn't kept pace with public expenditure: FM
Says greater access to China may help economy, but sense of caution would have to be built in Ruchika Chitravanshi New Delhi Listen to This Article India's private sector investment has not kept pace with the growing public expenditure, Finance Minister Nirmala Sitharaman said on Saturday. Healthy corporate balance sheets are sitting on passive investible funds, instead of companies engaging in capacity expansion, she said. Sitharaman stressed that growth was the topmost priority of the government. While stating that greater access to China may help the economy, she said a sense of caution would have to be built in. Sitharaman was speaking at the launch of the book A World in Flux: India's Economic Priorities, co-edited by Professor Amita Batra of Jawaharlal Nehru University and veteran
Mint
26-07-2025
- Business
- Mint
Global oversight needed for the tokenization of currency: Nirmala Sitharaman
Finance minister Nirmala Sitharaman on Saturday called for a redefinition of multilateral institutions to provide effective oversight as countries explore the tokenization of currency, warning of rising complexity and the lack of global frameworks to govern this shift. Speaking at the release of a book, A World in Flux: India's Economic Priorities, in New Delhi, she said that multilateral institutions have never been left in limbo in the last 100 years. The finance minister said this is true for financial as well as strategic institutions. Every multilateral institution that has successfully served earlier is now wondering where it is, what its immediate future will be, and how it will redefine itself. Her concerns about the tokenization of currency—the transformation of money into digital tokens on a blockchain or distributed ledger—come at a time when cryptocurrencies are increasingly making their way into the financial world. The Reserve Bank of India has cautioned multiple times that virtual currencies are risky. However, the US government under President Donald Trump is encouraging more innovation in this area. In January, Trump signed an executive order to ensure Washington's leadership in digital financial technology. He then set up a working group to develop a federal regulatory framework governing digital assets, including stablecoins, and to evaluate the creation of a strategic national digital assets stockpile. Trump also revoked the Treasury Department's 'Framework for International Engagement on Digital Assets, which suppressed innovation and undermined US economic liberty and global leadership in digital finance'. The US is also trying to become the 'crypto capital of the planet', according to the presidential order. Sitharaman said multilateral institutions have to be redefined. 'If you could go for a currency with no gold backing sometime in the 70s, now it is already moving towards tokenization and is that something on which we see the depth of?' The minister also asked if there was any framework under which any country could unilaterally take that route. 'Who is going to have oversight on these sorts of things?' The minister said the depth and the complexity of the situation were increasing. The book, A World in Flux: India's Economic Priorities, edited by Amita Batra, former chairperson at the Centre for South Asian Studies and A.K. Bhattacharya, editorial director at Business Standard is published by Rupa Publications India Pvt. Ltd. Sitharaman also said in response to a question about the normalization of economic ties with China that it was right to point out that there are calls for greater access and interaction with China, and possibly to open some windows. 'That is not just from our side, even the Chinese have been approaching through the ministry of external affairs,' the minister said, referring to external affairs minister S. Jaishankar's recent visit to China. 'There is some kind of beginning. As to how far it will go, it is something we will have to wait and see,' the minister said, adding it might help the economy, and a sense of caution would have to be built in. To a question on investments in the economy, she said that companies' and banks' balance sheets have become healthier, and the corporate tax rate was cut to boost investments. Referring to what the minister was hearing from observers and her own interactions with business leaders, Sitharaman asked if businesses were sitting on passive, investible funds. 'That is, investible funds that are being engaged passively rather than investing and expanding capacity. That is an issue that I would obviously want the industry to speak about.' On trade, she said bilateral trade has now taken priority over multilateral trade, though she could not comment on the merits of this trend. The minister added that negotiations for trade deals are well progressing with the US and the EU.
Indian Express
26-07-2025
- Business
- Indian Express
India, China marking a beginning, sense of caution would have to be built in: FM Nirmala Sitharaman
India and China are beginning to move towards more access and interactions that might help the economy, even as a sense of caution would have to be built in, Finance Minister Nirmala Sitharaman said on Saturday. She also underlined that maintaining growth is India's top priority along with the need to be a dynamic player in global institutions and redefining its role in the global South, and having a friendly and attractive FDI policy to be able to get more and more investments. When asked about the thaw in Indo-China relations at the launch of the book A World in Flux: India's Economic Priorities with the recent relaxation of visa norms, Sitharaman said not just India but China has also shown interest in these interactions and one will have to 'wait and see' how far it will go. Citing the restrictions earlier enlisted in Press Note 3 that had put curbs on investments from China, which also affected some of the projects including those in the renewable energy sector, Sitharaman said there was lull during the tariff war between the US and China. But, now it has been felt by both India and China for the 'need to have more access and a lot more interactions that could possibly open some windows'. 'And that's not just from our side, even the Chinese have been approaching through the MEA. So, you had External Affairs Minister S Jaishankar go. There is something, some kind of a beginning, as to how much it will take us far; how far it will go is something we will have to wait and see. But it might help the economy; however much, a sense of caution would have to be built in,' she said. Last week, External Affairs Minister S Jaishankar travelled to China where he had underlined that 'differences should not become disputes' nor should 'competition ever become conflict' and that while India and China have made good progress in the past nine months towards the normalisation of bilateral relations, they should work to address de-escalation on the border. India had earlier put restrictions on investments from China through Press Note 3 in April 2020 to curb potential opportunistic takeovers of Indian companies during the Covid-19 pandemic by making a government approval mandatory for all investments from countries sharing a land border with India, including China. It continued to be in force in the wake of national security concerns due to border tensions after the Galwan clash. Enlisting India's priorities, Sitharaman said growth is the topmost priority. 'Growth is the topmost priority, and therefore, it will have an overlap with: do you create jobs, do you have that value addition,' she said. The Indian economy grew by 6.5 per cent in FY25, the slowest in four years as against 9.2 per cent growth in FY24. For the current financial year 2025-26, the Economic Survey has projected GDP growth at 6.3-6.8 per cent, while the RBI has lowered its growth forecast to 6.5 per cent from an earlier level of 6.7 per cent for FY26. The second objective for India would be to be relevant on the global stage, she said. 'Not just to be there in the leadership position but to be able to define how this move is going to take India forward along with the rest of the countries. We need to define the global institutions which are going to govern us for the next hundred years,' she said. Within India, Sitharaman said the government will have to focus on whether it is giving the economy the necessary support and attending to every aspiring section's aspirations, not just by giving money but by giving an overall ecosystem through which they can aspire to grow. Finding resources for meeting domestic economic aspirations within fiscal constraints is another priority for the government, she said. Another priority would be to make sure that the FDI policy is friendly and attractive to be able to get more and more investments happening in India. On the issue of trade pacts, Sitharaman said agreements are taking priority over multilateral trade even though she can't comment if it's good or bad as of now. 'On the bilateral trade front, we are moving forward and we have seen bilateral agreements being signed in the last four to five years with Australia, UAE, EFTA and the UK. Negotiations are progressing well with the United States as well as the European Union,' she said.
&w=3840&q=100)
Business Standard
26-07-2025
- Business
- Business Standard
Growth must mean jobs, value addition and economic stability: Sitharaman
India's top economic priority is not just growth, but ensuring that growth is meaningful, inclusive and sustainable, Finance Minister Nirmala Sitharaman said on Saturday, as she laid out a comprehensive view of how the country must respond to a fast-changing global and domestic economic landscape. 'The topmost priority is growth,' she said. 'It's about jobs, value addition and the quality of the growth - what goes into GVA (gross value added) matters.' She said India must adapt dynamically to global shifts, while balancing domestic aspirations with fiscal prudence. 'We must define how this movement forward is going to take place - with India at the table,' she asserted. Sitharaman was speaking at the launch of A World in Flux: India's Economic Priorities, a new book honouring noted economist Shankar Acharya. The event, held at the India International Centre, brought together a host of senior policymakers and economists. The volume, published by Rupa Publications and co-edited by Professor Amita Batra and veteran journalist A K Bhattacharya, features essays on the shifting global order and its implications for India. A dynamic global puzzle Reflecting on the theme of the book, Sitharaman said the phrase A World in Flux aptly describes today's geopolitical and economic environment. 'Institutions that were once seen as stable and effective - particularly multilateral institutions - now appear to be in a state of limbo. Not just financial institutions, but strategic ones as well.' She urged India to remain agile and proactive in this evolving context. Using a vivid metaphor, she asked: 'Are you going to be a static piece or a dynamic one? And how do you keep redefining the contours of your piece so that you still fit in, even as the puzzle keeps changing?' India, she said, must go beyond just being a participant and take an active role in shaping global frameworks. 'It's not just about being present; we must define how this movement forward is going to take place - with India at the table.' Balancing ambition with responsibility At home, Sitharaman stressed the importance of aligning growth strategies with fiscal prudence and inclusive development. 'It's one thing to aspire to be at the table and to maintain growth, but fundamentally, we must support the economy at every level.' She argued that India's policy focus must be on building long-term systems, not just distributing short-term benefits. 'We need to attend to the aspirations of every section -- not just by giving money, but by building systems that enable them to grow.' This includes creating jobs to harness India's demographic advantage, and managing resources in a way that supports long-term economic stability. 'The challenge lies in aligning domestic aspirations with resource availability and ensuring that economic priorities evolve accordingly,' she said. Public investment as a growth engine Sitharaman underlined the government's continued focus on public capital expenditure to sustain economic momentum. 'The numbers are before you each year -- it's a clear instruction from the Prime Minister that capital expenditure must grow, and grow significantly,' she said. Calling this a cornerstone of India's growth model, she noted that public investment has increased consistently in recent years. 'This is one of the primary drivers of sustained economic growth,' she said, while also acknowledging that overall investment levels could still improve. Policy environment, private sector recovery The finance minister also spoke about efforts to improve the investment climate. 'The policy on FDI is made friendly and attractive enough to bring in more investments,' she said, adding that state governments are also actively competing to attract capital. 'Each one is doing its best—and the more successful ones are setting benchmarks for others to catch up.' She noted that the private sector has strengthened in recent years, especially after the resolution of the twin balance sheet problem and the 2019 corporate tax cuts. 'After Covid — and even starting from 2019 — you can see that the corporate sector is healthier.' According to her, industry players are now showing more interest in production-linked investments. 'There is a visible shift from just financial engagement to actual investment in production and expansion.' 'We are moving forward' Addressing the persistent concern around employment, Sitharaman admitted that job creation remains a challenge but struck a hopeful note. 'At least we are moving forward,' she said. In conclusion, her remarks painted a picture of an India that is not only adapting to global shifts but also taking steps to lead responsibly, ensuring that growth is equitable, job-creating and future-ready.
