The writer is chief tennis ids facebook economist, HSB
Pranjul Bhandari writes: Switch to renewables will impact several economic agents, require institutional coordination to address multiple complexities.
Pranjul Bhandari writes: It is critical to provide protection to workers via social welfare schemes.
The central bank may have been the main game in town in 2020. But fiscal policy will likely play a bigger role in shaping the growth recovery in 2021.
The RBI may have to take steps to gradually drain the excess liquidity in the banking sector, provide a floor for short-term rates, which have fallen below the reverse repo rate, and finally narrow the policy rate corridor by raising the reverse repo rate.
We believe the supply disruption caused by reverse migration won’t last long, but led by lower wages, demand could remain weak, requiring policy intervention.
Long-term investments in social sector are essential for growth, political stability.