A newsletter of popular articles on financial markets and corporate finance


Volume 4, Issue 2, November 2017

Artha - November 2017


November amendments in GST rates and filing of returns have brought relief to manufacturers and traders. However, marketplace operators are still not happy.  Finance Ministry believes that reduction of GST rates would not result in shortfall in target indirect tax collection. The Ministry expects strong corporate results in third and fourth quarters of the current fiscal and hopes that buoyancy in the economy will improve the overall tax collection. One has to wait till March 2018 to see the impact of recent changes in GST on the exchequer.
India has also completed this month the first anniversary of demonetisation. Researchers and policy makers would now analyse the data to comment on the effect of such a large natural experiment. We expect to see some serious study on impact of demonetisation soon.

The first article deals with the recent lowering of GST rates where the author explains why our government should use lessons from corporate finance to set the initial GST rates. The second article looks at the external commercial borrowing by Indian firms in detail and tries to find out some of the implications of this surge in external debt in India. The third article explains RBI’s Monetary Policy after Dr. Urjit Patel takes over as the new RBI Governor. In the fourth article, the author discuss about current research in algorithmic trading which has been growing fast in India, but Indian market regulators need to be wary of prescriptions derived from complicated market trading models as they are still works in progress.

The last piece is a conference report of India Research Conference held on 27 October 2017 at New York University (NYU) Stern Business School.

You may send your comments and feedback on this issue to ashok@iimcal.ac.in

Happy reading!

Ashok Banerjee

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From IIM Calcutta

GST and Corporate Finance- A note

Author: Ashok Banerjee ( From IIM Calcutta )

The Goods and Services Tax  (GST) is the most important indirect tax reform in India. It was debated enough over the past sixteen years and yet when it was launched in India, a common criticism was that the present government hurried its implementation. Experts complained that the IT infrastructure was not robust to handle such […]

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From IIM Calcutta

A note on External Commercial Borrowings in India: Rapid growth amidst some vulnerabilities

Author: Parthapratim Pal, Ahana Bose ( From IIM Calcutta )

Introduction External debt flows to developing and developed countries have increased rapidly over the last few years. A study prepared by the Institute of International Finance (IIF) and reported by Reuters indicate that global debt has risen to record US$ 226 trillion, which is more than three times global economic output. The developing world is […]

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Alumni Corner

Monetary Policy, a vindication, but not a time to rejoice

Author: Balachandran R ( Alumni Corner )

When the soft spoken Urjit Patel took over as the Governor from Raghuram Rajan, his predecessor with rock star status in the world of finance, there were those who wondered if the fiercely independent Reserve Bank of India, will continue its impeccable track record in setting monetary policy. Growth versus inflation India has seen a […]

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Voice of America

What Do Trading Algorithms Know?

Author: Ayan Bhattacharya ( Voice of America )

Let us start with an intriguing puzzle at the heart of Epistemic Game Theory: Is it possible to have a configuration of beliefs such that, “Ram believes that Kali assumes that Ram believes that Kali’s assumption is wrong” (Brandenburger & Keisler, 2006)?[1] If Ram believes that Kali’s assumption is correct, then he believes that the […]

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From IIM Calcutta

India Research Conference – A report

Author: ( From IIM Calcutta )

The second IIM Calcutta-NYU Stern India Research Conference was held on 27 October 2017 at New York University (NYU) Stern Business School. The conference is supported by the Financial Research and Trading Laboratory, IIM Calcutta and the Centre for Global Economy and Business, NYU Stern. The primary aim of the conference is to showcase issues […]

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