Best of BS Opinion: RBI's right call, India-China tensions, and more

With the outlook on inflation uncertain, the Reserve Bank of India has sensibly kept policy rates unchanged and offered borrowers with a good repayment track record some relief by way of a resolution plan, for which veteran banker K V Kamath will head an expert committee to suggest financial parameters and sectoral benchmarks. This is a better way of dealing with the situation compared to another blanket moratorium extension, as the lead edit’s analysis of the monetary policy points out here, writes Kanika Datta in this summing up of the today’s views.

 
After days of denials, the government appears to have finally admitted to Chinese transgressions across the Line of Actual Control. Who is accountable for this? Ajai Shukla offers a brief history of Sino-Indian conflicts here to suggest that the Indian government isn’t too hot on accountability.

 
In his last column as director of the National Institute of Public Finance and Policy, Rathin Roy points to the lack of “strategic vision and poor institutional capability” that have compounded legacy issues and put India’s fiscal situation in a dire position. Read it here

 
India’s dairy farmers are in crisis as a result of the collapse in demand, affecting the livelihood of 80 million landless, small and marginal farmers. They deserve the same kind of support the government has extended to crop cultivators, says the second edit. Read it here

 
QUOTE OF THE DAY

 
‘What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way….And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy’

 
Former RBI governor Raghuram Rajan at the Global Markets Forum


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel