Former C. Rangarajan, ex-Governor of the Reserve Bank of India, has raised important concerns regarding the recommendations and broader approach of the 16th Finance Commission. His observations have sparked renewed debate on fiscal federalism, revenue sharing, and the financial health of states in India. Understanding the 16th Finance Commission The Finance Commission plays a crucial […]
India’s Finance Minister, Nirmala Sitharaman, has delivered a strong and timely message to the country’s banking sector: focus on core banking activities and put an end to mis-selling practices. Her remarks come at a crucial time when banks are navigating economic recovery, credit growth, and increasing regulatory scrutiny. A Call to Return to Core Banking
In a significant move aimed at improving trade efficiency and reducing delays, the Union Finance Ministry has directed stricter monitoring and rationalization of queries within the faceless customs assessment system. The decision is expected to streamline import-export processes while maintaining transparency and accountability. Background: What is the Faceless Customs Assessment System? The faceless customs assessment
In her response to the ongoing debate on the Union Budget 2026-27 in the Lok Sabha, Union Finance Minister Nirmala Sitharaman offered a firm clarification on a key fiscal concern affecting India’s states: tax devolution. Amidst discussions and some political criticisms, the Finance Minister made it clear that no state’s share of tax devolution has
For decades, the finance industry has operated like a well-oiled profit machine. From transaction fees and advisory commissions to credit spreads and asset management charges, financial institutions have built stable, recurring revenue models. But artificial intelligence (AI) is now emerging as a disruptive force — one that could fundamentally reshape how profits are generated across
The 16th Finance Commission (16th FC) has identified Tamil Nadu as one of the top three Indian states suffering significant losses from Public Sector Enterprises (PSEs). This observation has reignited discussions around state finances, governance reforms, and the long-term sustainability of state-owned enterprises. Why Public Sector Enterprise Losses Matter State PSEs play a crucial role
India and the United States have taken a significant step forward in strengthening their economic partnership with the announcement of an interim trade deal. While this is not a full-fledged free trade agreement, it eases several trade frictions, lowers select tariffs, and sets the stage for deeper bilateral cooperation. For businesses and investors, this interim
The Reserve Bank of India (RBI) has unveiled a fresh set of regulatory measures aimed at strengthening customer protection in the banking system. With rising instances of digital fraud and growing concerns around the mis-selling of financial products, the central bank’s latest move signals a sharper focus on transparency, accountability, and consumer trust. These reforms
India’s federal fiscal framework is witnessing a subtle yet significant shift. The Finance Commission has increasingly encouraged state governments to align their public sector undertaking (PSU) policies with that of the Centre-particularly in areas of disinvestment, strategic restructuring, and fiscal accountability. This nudge reflects a broader effort to improve efficiency in public enterprises while easing
India’s fiscal federalism has always walked a tightrope-balancing national priorities with state autonomy, equity with efficiency, and reform with political reality. The recommendations of the 16th Finance Commission (FC) arrive at a moment when this balance feels more delicate than ever. Rather than dramatic shifts, the Commission offers what can best be described as a
