GDP

The fiscal consolidation effort of the union government reinforces the fact that a sustained reduction in debt and deficit at the union level is critical for a fast improvement in the general government fiscal balance. As the economic growth has improved, a medium-term debt path for a targeted reduction of debt ratio would help sustain the gains achieved in 2022–23.

The non-banking financial companies play a critical part in credit intermediation in India, with an active participation in credit lending to the segments that are largely left out by the formal banking channels. These include micro, small and medium enterprises, agriculture sector, and other unbanked sectors. Hence, they play a noteworthy role in the last-mile delivery of financial services and overall financial inclusion. Against the backdrop of the recent liquidity crisis, the financial health of selected 15 large NBFCs and the capital requirement regulations towards the sector are examined.

Foreign direct investment reveals the tendency to fl ow to the industrial agglomerates. Some scholars express the concern that the skewed distribution of FDI can worsen the regional disparity. This article reveals that FDI has limited and unexpectedly negative effects on the Indian gross domestic product. Hence, the fear that skewed FDI infl ow can worsen regional disparity stands rejected.

This article presents a comparative analysis of poverty reduction and pro-poorness of growth in Gujarat and Tamil Nadu during the post-reform period. We use the unit-level data of the Consumer Expenditure Surveys of the National Sample Survey Office to estimate the poverty ratio for both rural and urban areas of these states. The first period (1993–94 to 2004–05) recorded a slow poverty reduction, but the second period (2004–05 to 2011–12) witnessed a faster reduction in poverty in rural and urban areas in both the states concerned.

Using an accounting framework, this article simulates the evolution of the debt ratio based on four policy interventions. It recommends pursuing an expansionary monetary policy combined with an equally active and complementary fi scal policy. The article also says that monetary policy should target the debt ratio, while fi scal policy should target output.