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As mentioned in recent interviews, India have opted for a step-by-step approach rather than the one "Big Bang" package approach. First step was to secure the population from a deadly epidemic - hence the 21 day lockdown (nothing else would matter if we lose control) 1/2
Second, it was recongnized that several key financial deadlines loomed as we approached 31st March. Hence, these were rescheduled (mostly to end-June) to ease the pressure. 2/n
The next priority was to make sure that basics are secured for the poorest - physical food supplies, cooking gas, and some cash. The is what FM @nsitharaman announced yesterday 3/n
As a next step, RBI Gov @DasShaktikanta today announced a series of measures to pump in liquidity liquidity into the financial system, sharply cut policy rates and, importantly, provided debt moratorium. 4/n

Details below:
rbi.org.in/Scripts/bs_vie…
As should be clear from the above, the approach does not presume a particular path but is based on constant monitoring of an evolving situation, and responding firmly & systematically. As RBI Gov & FM made clear, we will do whatever it takes 5/n
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More from @sanjeevsanyal see all

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Sanjeev Sanyal
@sanjeevsanyal
Am having an odd problem. Many videos featuring me have suddenly become restricted outside India. Initially thought this was due to rights, but this is now happening systematically across platforms. Here is a CNBC interview that has problems (1/2):
Here is a link to a Rig Veda related presentation that I did at Artha festival. The organizers had to specially get it unblocked. It was not explained why it was restricted forUS/UK in the first place (2/2):
Request people in US/UK to tell me if they can view the latter video now. Also, are they seeing this trend with others?
Read 4 tweets
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Sanjeev Sanyal
@sanjeevsanyal
A second major change announced in the Union Budget relates to allowing non-resident investors i.e. foreign investors (not NRIs as media reported) to freely invest in special category of government securities. This is a step aimed at inclusion in global bond indices. 1/n
This was an issue that was discussed at the Bloomberg conference attended by PM Modi in NY in Sept. Global bond indices represent trillions of US dollars of "sticky" money. Being included in the indices, therefore, would provide a cheap & stable source of foreign capital. 2/n
The catch is that global bond indices insist that there should be no restriction of entry/exit from a market. So, simplest way to gain inclusion would have been to remove the 6% limit of FPI holdings. However, that would expose the Indian economy to the Impossible Trinity 3/n
Read 6 tweets
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Sanjeev Sanyal
@sanjeevsanyal
The Union Budget announced yesterday has a number of radical measures that need elaboration. One of them is Bilateral Netting. This may seem like an arcane technical change, but it will lay the foundation of a functioning corporate bond market in India 1/n
So, what is bilateral netting? It allows two financial institutions to set off exposures to each other for the purposes of capital & margin. Illustration: Bank A has an exposure of Rs100 to Bank B, and Bank B has an exposure of Rs90 to Bank A. The gross exposure is Rs190 2/n
With the imposition of capital requirements, the banks have to keep aside capital for Rs190. However, the net exposure is only Rs10. With bilateral netting, banks will only have to look at the net position thereby freeing up capital (in this illustration 19:1 ratio). 3/n
Read 7 tweets

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Trinh Nguyen
@Trinhnomics
India is cutting the corporate tax rate to 25.2% from 30%. This is to promote growth and investment.

India to allow local companies to pay income tax at 22% . The new effective rate on new manufacturing companies is 17.01%.

All part of the strategy to avoid the 5% growth trend
Indonesia is planning to cut taxes to 20% from 25% starting 2021. Both Indonesia and India are slashing tax rates to be more competitive. This is in response to entice investors to come to those countries & also to stay. @Trinhnomics stated that US tax reform'll push for this too
👇🏻👇🏻👇🏻 #MakeinIndia #India

New domestic manufacturing companies incorporated after October 1, can pay income tax at a rate of 15%without any incentives.

Meaning, the effective tax rate for new manufacturing companies will be 17.01% inclusive of all surcharge and cess.

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EH
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India's #VikramLander failure is being debated here depending on which angle one is taking: consider.
1, as a scientific/tech achievement, final-phase failure aside, it is a big leap and shows #ISRO in a good light; 2, it also shows that #India is producing an impressive array>
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Manoj Kewalramani
@theChinaDude
Should #India allow #Huawei a role in building the country’s #5G network? @AKanisetti and I have tried to provide a roadmap for the government in our new discussion document. takshashila.org.in/takshashila-re…
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India needs to think about Huawei’s checkered history and linkages with the #Chinese Party-state, the potential of and threats from 5G and the country's position in the world of tech geopolitics.
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Tanvi Ratna
@tanvi_ratna
🚨#India #Crypto #ban #regulation🚨THREAD:

Imp pts for every observer in India/abroad in short clips:

Part 1 - Analyzing Leaked docs

1. Pg cites fine or 1-10 yrs for SPECIFIC activities
2. No definitions! Draft clearly not ready for legislation (1/n)
Part 2 - Understand the policy process

1. Draft doesnt = ban, until it clears Finance Minister & Parliament vote.

2. Public consultation NOT mandatory. Ask for it.

3. WRITE (>tweet) to folks mentioned in the vid

#India #Crypto #ban #regulation (2/n)
Part 3: Understand the existing baseline in India

Esp intl folks @PeterMcCormack

- Instant payments/settlement already exist
- Free/mobile banking already exist
- Crypto must solve the right probs from a govts perspective

#India #Crypto #ban #regulation
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Myra MacDonald
@myraemacdonald
I am trying not to get into the war of words between #India and #Pakistan over whether or not the Indian Air Force shot down a Pakistani F-16 in their recent confrontation. But since it keeps coming up on my timeline, some general observations (thread).
I learned from my first book on the Siachen war that nobody is a reliable witness. A lot of this is fog of war - tricks of memory, but also hierarchy – people will say what their bosses want to hear, aggrandise their own role, cover up for incompetence or simply get it wrong.
Among the most frustrating elements of writing up the Siachen war was that I found contradictions between men who had fought on the same side, sometimes even on the same day.
Read 9 tweets
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The Express Tribune
@etribune
#India started bombarding Pakistan with allegations after the #PulwamaAttacks says #DGISPR
We wanted to investigate the #Indian allegations after we were sure footed #DGISPR
#PulwamaAttacks occurred when #pakistan had important eight events happening in and out of the country. #DGISPR
Read 15 tweets

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