archiveEconomic growth

The renewal of the Bilateral Swap Arrangement (BSA), originally established in 2008 and later expanded, now valued at up to $75 billion, marks a significant milestone in the economic partnership between Japan and India. This agreement allows both nations to swap their local currencies for US dollars, providing a critical financial safety net against potential liquidity crises and balance of payments challenges. At a time of heightened global financial volatility, this renewed arrangement underscores the deepening strategic and economic cooperation between these two Asian powerhouses.The BSA holds immense importance for...

Despite India’s strides in innovation, supported by its scientific manpower, robust IT and pharmaceutical sectors, and a thriving start-up ecosystem, the country continues to lag in research and development (R&D) investment. The gross expenditure on R&D (GERD) in India has increased from approximately ₹60,196 crore in FY11 to about ₹1,27,381 crore in FY21. However, this remains at just 0.64 per cent of GDP — far lower than many global counterparts.In most developed and emerging economies, business enterprises contribute over 50 per cent to GERD, with countries like China, Japan, South...

(Bloomberg) -- Some of Asia’s biggest central banks are getting a painful refresher in economic theory. Monetary authorities in China, India and elsewhere have waged a prolonged campaign against the strong dollar, using a mix of official reserves and opaque derivatives trades to defend their currencies. But their moves have pushed up borrowing costs for local banks just when slowing economies need more liquidity. China’s overnight and seven-day repo rates surged in February, while bond investors took losses from a sharp rise in yields. Banking liquidity in India suffered its...