oppn parties Good Monetary Policy Needs To Be Complemented By Matching Fiscal Policy

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Tiranga Rally Is Excellent. Breaking The Law Was Not

October 17, 2026

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  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
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Good Monetary Policy Needs To Be Complemented By Matching Fiscal Policy

By Sunil Garodia
First publised on 2020-10-10 12:34:04

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

As expected, the Monetary Policy Committee of the RBI has decided to hold interest rates. Citing supply disruptions due to the lockdown as the main reason for inflation, it has also chosen to ignore the inflation rate which has gone beyond the limit set by it.  The MPC has also taken other important decisions to bring more liquidity in the market. The RBI governor has said tat the GDP might contract by 9.5% in 2020-21. He also said that he expects a strong performance in the last quarter f this fiscal.

But is liquidity the problem, or the main problem? Banks have enough cash but they are not lending either due to the scare of decisions being questioned or due to the fact that quality projects from reputed borrowers are not coming up. Maybe it is a combination of both these factors. Whatever the exact reason, banks are increasingly parking their funds with the RBI.

For the last six to eight months, the RBI has done much better than expected in managing the monetary policy. But with the precarious state of the economy, only good monetary policy is not enough to turn the wheels. There has to be a matching fiscal policy.

The government needs to make huge and rapid investments in infrastructure projects. It needs to find the money to make these investments. It is true that indiscriminate borrowing by the government invites ratings downgrade. But that is to be considered only when such borrowings are for funding handouts or populist schemes, or to service debts, in which case the the country is sure to fall in a debt trap. When it is a matter of life and death and when money on the scale required cannot be arranged from any other source, the government has to borrow.

The economy is crying out for investment from the government. Only the Centre is now capable of improving the business sentiment by initiating big projects. Once orders are placed for those, there will be a cascading effect that will work like magic across all sectors of the economy. Jobs will be generated, tax collections will improve and hopes will soar. Granted infra projects have long gestation periods and the government will have to service and repay the loans. But that is one risk it has to take to revive the economy. 

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