oppn parties Now The RBI And The Private Sector Will Have To Pitch In

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  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
oppn parties
Now The RBI And The Private Sector Will Have To Pitch In

By Linus Garg
First publised on 2024-02-02 07:25:14

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Finance minister Nirmala Sitharaman has given clear indications to the RBI and the private sector by managing the finances well. She has managed to keep fiscal deficit in check at 5.8% which is lower than what was projected in last year’s budget. Going forward, she has pledged to reduce it further to 5.1%. That means that the government will be borrowing at least Rs 1 lakh cr less. Simultaneously, instead of burning money by announcing new welfare schemes, increasing the handout in existing schemes or increasing subsidies in an election year, she has increased allotment for capital expenditure and infrastructure projects.

The message to the RBI is that with reduced pressure on inflation due to prudent government policies, it must now usher in a lower interest regime and boost liquidity. The message to the private sector is clear. The government will do its bit in pushing big infrastructure projects and invest in building assets for the nation. It will not borrow indiscriminately to reduce the pool of funds from which the private sector borrows. It will do all to nudge the RBI to lower interest rates. It will create opportunities for the private sector - mainly the core sector and downstream units associated with it - to expand capacities and set up new units.

This is good for long term development of the nation. The government knows that there are limitations on public sector job creation. The real driver of the economy is the private sector and it is not really firing at the moment. But by encouraging the sector to invest, the government is taking steps for inclusive development which will create jobs and boost demand. This is welcome. 

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