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BasisPointInsight.com - Why a Weaker Rupee Doesn’t Always Mean Stronger Growth by V Thiagarajan Exchange rate depreciation is often read as an engine of growth. For India, import dependence and balance sheet vulnerabilities tell a different story. by V Thiagarajan, BasisPointInsight.com

2/2 The trade channel weakens just as the financial channel begins to tighten balance sheets and credit. What looks expansionary in theory can turn contractionary in practice.

Read 𝐕 𝐓𝐡𝐢𝐚𝐠𝐚𝐫𝐚𝐣𝐚𝐧’s column for BasisPoint 👇

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TrendWatch: Deficient Monsoon, Iran War: A Double Shock to India’s Rural Economy

5/6 At the same time, fertiliser subsidies and rural support spending could rise, stretching fiscal space.

The more structural concern is that rural demand, which has already been uneven, could weaken further.

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BasisPointInsight.com - Why Waste a Good Crisis: Breaking the Logjam by Sharmila Chavaly India’s renewable push is stalled by a broken PPA model, leaving 45–55 GW stranded. Without reform, capital, capacity and energy security gains risk slipping away. by Sharmila Chavaly, BasisPointInsight.com

2/2 The traditional PPA model, once the backbone of energy finance, is struggling under the weight of weak discom balance sheets, falling tariffs, and rising uncertainty.

Click to read the concluding part of 𝐒𝐡𝐚𝐫𝐦𝐢𝐥𝐚 𝐂𝐡𝐚𝐯𝐚𝐥𝐲’s three-part series 👇

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