Josh Felman is former IMF Resident Representative to India.
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.
Aravind Subramanian writes: Now, following the Covid-19 shock, red ink will be blotting balance sheets across the economy.
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.