There are only two ways to reconcile the economy and the voting results. The overall pie has not grown sufficiently rapidly and it has been shared unequally, but in a different manner than believed
Arvind Subramanian, Josh Felman write: Central bank has been behind the inflation curve, its mistake was never corrected or even challenged. It's a failure of the institution and its guardrails.
Arvind Subramanian, Josh Felman write: States should give up their demand for an extension of GST compensation mechanism, while the Centre should offer resources during an economic downturn.
Government should plan to gradually improve its primary balance. This would protect against the risk of the growth-interest differential turning unfavourable.
Exceptional situation calls for creative solutions — new set of procedures that utilise much of existing IBC framework, reformed IBC, bad banks for stressed assets in power and real estate sectors.
Indicators of exports, imports, and real government revenues are in negative territory, or close to it. Clearly, this is not an ordinary slowdown. It is India’s Great Slowdown.
Running an economy, especially one that is in a predicament such as India’s today, is infinitely more complicated and the data demands are hence commensurately greater. A Data Big Bang effort along the lines proposed here would make that difficult task less challenging.
