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Economy

Bilateral Netting

24th September – Bilateral Netting

The importance of Bilateral Netting The Government of India has just placed – the Bilateral Netting of Qualified Financial Contracts Bill, 2020 in the Parliament. The new law will allow financial institutions to ‘net’ out their exposures against each other rather than have to manage exposure on a gross basis. What is ‘bilateral netting’? Netting …

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Labour Reforms

23rd September – Labour Reforms

Labour laws dilution Recently, the government withdrew three Bills related to labour laws and replaced them with new ones. These Bills make significant changes to regulation of labour and the employer-employee relationship in several ways. Background – India has a complex regime of labour laws, and several committees have recommended simplifying and rationalising them. Last …

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Priority Sector Lending

3rd September – Priority Sector Lending Certificates

Priority Sector Lending Certificates The RBI had listed out ‘priority’ sectors that banks such as agriculture, housing, education and micro-small enterprises to which the banks must compulsorily lend to in the form of loans. It is called ‘priority sector lending’. But this method has often been criticised for meddling too much in the workings of …

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Supply Chain Resilience Initiative

1st September – Supply Chain Resilience Initiative

Supply Chain Resilience Initiative With COVID-19 and trade tensions between China and the United States threatening supply chains or actually causing bottlenecks, Japan has mooted the Supply Chain Resilience Initiative (SCRI) as a trilateral approach to trade, with India and Australia as the other two partners. The initiative is at the strategy stage and has …

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Defence

31st August – Impact of import embargo on defence

Impact of import embargo on defence The Ministry of Defence (MoD) announced an embargo on the import of 101 items through a press release issued on August 9, 2020. Details about the decision – The Annexure to this press release lists a wide range of embargoed ammunition, weapon systems, radars, simulators, and other platforms.  A …

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Battery swapping

29th August – Battery swapping

Should the government promote EV battery swapping? Recently, the government allowed electric vehicles to be sold and registered without batteries. The rationale behind the move, it explained, was to de-link the cost of the battery from the vehicle cost. Battery accounts for 30-40 per cent of an electric vehicle’s cost and this move would bring …

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LTV

15th August – Loan to value (LTV) ratio

Loan to value (LTV) ratio Recently, while the Monetary Policy Committee kept the policy rates unchanged, the RBI brought about other significant changes to help borrowers with additional liquidity. One such move was the increase in the permissible loan-to-value (LTV) ratio for loans sanctioned by banks against the pledge of gold ornaments and jewellery for …

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India's power sector

10th August – Transforming India’s power sector

Transforming India’s power sector India’s goal of installing 450GW of renewable energy looks to be a challenge, but this will be an even bigger challenge if India has overcapacity due to lower-than-expected demand. Therefore, an innovative response requires retiring old, inefficient coal plants by bundling them with new and cheaper renewable energy (RE) capacity. It …

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Self-reliance in defence

8th August – Self-reliance in defence

Self-reliance in defence The defence ministry released, in successive weeks, the drafts of a new Defence Acquisition Policy (DAP-2020) and a new Defence Production and Export Promotion Policy (DPEPP-2020). The two are together intended to promote the design, development, and manufacture of home-grown weapons platforms to boost the indigenous content of all weaponry (self-reliance in …

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Private train

6th August – How private train operations will benefit railways?

How private train operations will benefit Indian Railways? The recent announcement regarding private train operations has received mixed reactions. Private train operations can have a significant impact on Indian Railways, though the reasons may not be obvious. Scepticism regarding the success of the initiative is natural, given Indian Railways’ patchy track record with the private …

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