Econ & Policy
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The Real Story Behind Skyroot
The most newsworthy event last week (apart from the World Cup) was the success of Skyroot’s orbital rocket and satellite launches. India is now only the third country where a private company can put satellites into orbit. Not only is this incredible, it seems almost unbelievable. In a world where India lags far behind in… Continue reading
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The Price of Good Intentions
We often compare real estate prices in Mumbai or Delhi with cities like Dubai, London or New York. For owners of Mumbai homes, this may provide an illusion of wealth. However, the reality is that homes in Indian cities are among the least affordable, relative to incomes. Nearly half of Mumbai’s population lives in slums.… Continue reading
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The Comfort Trap
Indian companies have record cash reserves. Banks have clean balance sheets and want to lend. Yet private Capex remains subdued. Instead of leveraging excess cash and cheap loans to invest, companies are hoarding cash, buying government bonds, or returning money to shareholders via dividends and buybacks. So why is this? The usual excuse is poor… Continue reading
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Fees Are Visible. Learning Isn’t.
Fees Are Visible. Learning Isn’t. The Punjab government recently proposed a 5% cap on annual fee increases by private schools. Apparently, this is intended to curb “profiteering” and improve transparency. According to the news report, Mr. Harjot Singh Bains, the Education Minister of Punjab, said that education is a noble public good, not a commercial… Continue reading
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Roads, Roads Everywhere. But No Room to Drive.
India is in the midst of a massive infrastructure boom. Cities are aggressively building new roads and flyovers, widening and resurfacing old roads. Greater Mumbai alone spends upwards of ₹10,000 crores annually (including projects funded by the Centre). Delhi is not far behind. The top 10 cities probably spend close to ₹50,000 crores a year.… Continue reading
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Fully Charged. Fully Priced?
In the last few years, India has significantly ramped up Capex in the power sector, be it solar, grid connectivity, transmission and distribution infra, and more. Total power generation capacity more than doubled from 248 GW in 2014 to 520 GW today. Within this, solar has jumped from 2.8 GW to 110 GW. The transmission… Continue reading
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India Isn’t Spending Less. It’s Spending Differently.
We’ve grown up in a world where consumer spending meant FMCG. So when FMCG growth slows, we instinctively conclude that consumers are not spending. But that’s a lazy conclusion. The Household Consumption Expenditure Survey (HCES) 2023-24 provides a clue – the share of food has fallen sharply, while non-discretionary spending has risen. However, generic words… Continue reading
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You can run, but there’s nowhere to hide
The current Middle East crisis is not merely about oil and fuel, but a massive inflation shock rippling through the global economy. Reduced supply has triggered price spikes in petrol, diesel, aviation fuel, gas, fertilisers, and downstream chemicals. It’s not just oil derivatives—critical industrial inputs like aluminium, helium, methanol, sulphur and ammonia are hit as… Continue reading
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Banks Are Not Dinosaurs — Yet
I recently read an article claiming that fintechs and NBFCs will use AI to dominate lending, while traditional banks fade into irrelevance. It sounded plausible at first. But the more I thought about it, the less convinced I became. The essence of the argument is as follows: Today’s consumer wants speed and convenience (i.e. instant… Continue reading
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You Can’t Bet Against Human Nature
Since time immemorial, humans have gambled. In Harappa, Mohenjo-Daro and other places, numerous dice were found. Our ancestors enjoyed games of strategy and chance in 2500 BC. In ancient Greece, Rome, Japan, China, and elsewhere, people loved bets and wagers, even punting on gladiator contests and animal races. But throughout history, rulers and governments have… Continue reading
