Governor Das is principal secretary 2 to the Prime Minister
Trust begets trust, so they say. Shakti Kanta Das implicitly believes in carrying out the boss’s asking. And he has never been found wanting. In his finance ministry days, especially when he was the PM’s go to man, overseeing the landmark demonetisation of the 1000 rupee note. That was a task that required working in the highest of confidential execution ever required in India’s recent history. On one sudden day, on the resignation of then Governor Urjit Patel, Das was sent to take over the RBI.
At RBI, while Das started on a quiet note, the Covid-19 altered the dynamics in the banking sector. During the covid meltdown, Das reduced the repo rate by 125 basis points to revive the economy and offered a loan moratorium, restructuring packages to corporates to mitigate the adverse impact of the pandemic.
In his last policy review on December 6, 2024, the RBI kept the Repo rate, the main policy rate, unchanged at a high of 6.50 per cent amid the fall in GDP growth, squashing chances of a rate cut. While there was an open debate whether rate cuts were the solution to creating demand, and many a voice in the Finance Ministry remained keen, Das kept his cool, preferring to do what he thought was best for the economy.
He brought in reforms in the banking sector at a time when lenders were reeling under the worst asset quality situation. His efforts resulted in an improvement in the gross non-performing assets (GNPAs) of banks from 10.8 per cent in September 2018 to 2.8 per cent at end-March 2024.
One of his biggest challenges was to handle the pressure from the government on issues such as transfer of surplus funds to the government, restructuring of loans, infusing liquidity, and sticking to its strict default norms for resolution of bad debts in bank’s books, where the Centre has favoured a more lenient approach.
Das successfully resolved the issue of transferring surplus amount to the Government as dividend soon after taking over as the Governor, a sticky point with his predecessors.
Only a few months ago, when he was Governor RBI, there was much speculation that he may get another extension, after having served two tenures already. Till the penultimate day, the doors remained open, as they were. Just on the eve of his tenure coming to an end, a replacement was announced.
That the Prime Minister continues to repose his trust in Das, is amply stated in this appointment; given his finance background, he is best equipped to create a roadmap for a Viksit Bharat by 2047, a pledge the prime minister has taken. Given his composure and personal style of working, he is best equipped to create a level playing field where diverse stakeholders would be consulted and taken on board for a successful execution of a developed Bharat.
LG backs BJP govt’s ‘Viksit Delhi’ vision in his 1st assembly address
These are shifting sands where the local government will work in tandem with the centre’s constitutional representative, the LG’s office in the capital. Hopefully, with this one stroke, the animosity and constant bickering will become a thing of the past. That the LG will help the state government in chalking and delivering a Viksit Delhi is indeed, the need of our times.
In the traditional address to the first session of the newly constituted Delhi Assembly on Tuesday, the LG outlined the BJP government’s 10-point agenda, emphasising on corruption-free efficient administration, women empowerment, the welfare of the poor, improved health care, excellent education system, world-class road infrastructure, pollution free Delhi, revival of the Yamuna, clean water, and regularisation of unauthorised colonies and affordable housing.
“In the next five years, my government will give extensive emphasis to the 10 key areas. My government will adopt the ‘Viksit Delhi’ resolution as a policy document and will move forward in the direction of fulfilling promises made to the common people, as well as meeting their expectations. This policy document will be the top priority of the present government. In this regard, all the department heads have been instructed to prepare a 100-day action plan and development plan,” the LG said.
The LG separately was quoted as criticizing former chief minister Arvind Kejriwal’s “arrogance”, saying “Arvind Kejriwal said many bad things about PM Narendra Modi including that he (PM) will have to take rebirth for winning Delhi elections. When someone considers another a small man, he either looks at him from a distance or looks at him with arrogance… the people have given their answer,” Saxena said.
The LG stressed the obvious, when we said the previous AAP government was “harming Delhi” due to “constant confrontation and blame game in the past 10 years, and that the current dispensation will work in tandem with the Centre and neighbouring states on the basis of the principles of “cooperative and competitive federalism” under the Prime Minister’s leadership.
The big change is that the LG and the state government, both, are on the same side of the divide. In fact, the divide is gone. There is only one side.
“Along with this, my government will make the weak and corrupt government system, which was hidden behind the illusion of advertisements, free from corruption and strong and smooth with immediate effect,” LG Saxena said.
The LG also said that the Delhi government will not only continue all existing welfare schemes, but will make them more effective and corruption-free. He said the BJP government will provide LPG cylinders at 2500 each to economically weaker families, free cylinders on Holi and Diwali, Rs 2,500 monthly allowances to women from poor families, implement Ayushman Bharat Yojana, and set up Atal Canteens to provide meals at Rs 25 to the public.
The LG further reiterated that “On many occasions, this House has been misused to insult people holding constitutional posts. My government firmly believes that… the primary duty of this esteemed House is to engage in meaningful discussions, deliberations, debates, disagreements, and decisions on matters concerning the government and the people.”
It is no surprise that a number of CAG reports have been presented in the assembly, held back by the previous government, not seen as favourable to it. These accuse the previous AAP government of causing loss to the exchequer, of lack in delivery.
These are times when there are no more excuses possible, and delivery is all important as an important model of governance for the rest of the country to follow. With assurances from nobody less than the prime minister himself, finding echoes equally from the Home Minister, who oversees the centre’s delivery through subjects like law and order, the momentum cannot be lost.
Accepting her government’s defeat, being now the leader of the opposition in the state assembly, former CM Atishi has pledged to being responsible opposition, ensuring that the government delivers on their promises. This too augurs well for the city.
Separately, acknowledging the changed circumstances around governance in the city, the Supreme Court expressed optimism about better implementation of plans to clean the Yamuna. Observing that a BJP government is in place in neighbouring Haryana too – from where the Yamuna flows into the Capital a bench expressed the belief that disputes between the two states may not arise.
Blood Bath on D-Street! So far, the year 2025 has been Most Unkind!
The rout has been unimaginable. A huge fall, almost Niagara like, that has seen market caps of even blue chips companies bite the bullet. A spate of withdrawal of overseas investors has been consistent and most upsetting. Why foreign funds can’t stop selling Indian stocks, as they see a low earnings growth and High D-St Valuations. Amidst global turmoil, these foreign investors are driving away, selling over Rs 1 lakh-crore-worth of Indian stocks this year in less than two months. And since Oct last year, they have sold over Rs 2 lakh crore -higher than the record Rs 1.7 lakh crore net inflow in 2023. The Sensex has plunged more than 11,000 points from its September end high near the 86k mark thanks to foreign fund selling, at least in part.
The big questions being asked in financial circles are: Is India just not attractive enough for them currently due to weak earnings growth, and demand. Will the recent budget sops revive demand? Lower returns in dollar terms due to the falling rupee is another factor, or for that matter, what will become the rupee value to a dollar a few months away? Will foreign funds looking to redeem money from emerging market schemes, are being threatened because of the recent Trump-driven global turmoil? If this be true, is India the best-case scenario from where they can exit, given that even on today’s evaluations, they are booking profits? Or, even if India was attractive right now, foreign funds are being sought back in the US, and don’t have money to invest because money is going to the safe haven in current shifting sands – the US markets are best bet!
Will inflows improve in the second half of the year, but then India may not still be their top priority given slowing growth and relatively expensive valuations. In fact, this would beg the basic question: what caused these evaluations to climb as much as they did, in the first place?
Is the Capital Gains Tax also beginning to bite foreign fund managers? When Indian equity returns stood at over 20% and the rupee was relatively stable, perhaps it did not matter as much as it does now, with rupee steadily losing its value, and the future is still unknown?
What could become the silver linings, whereby the trend stops? Perhaps a GDP growth above 6-7% that supports corporate earnings, will also attract foreign investors. Rupee stability and inflation control could help too, and perhaps another fresh round of investor- friendly policies, that allow for free flow of investments again? India may need to refresh the package again, as China becomes a favourite again.
However, as per data available, foreign investors are said to own roughly 16% of India’s market cap. The India exposure is therefore marginal in the global context. If the Indian market was to see further correction, the selling would perhaps slow as they would find good rationale again.
At the end of this fall, it would seem that the Indian markets may become attractive again!
Is there a Hindu Renaissance?
Is there an Hindu revival, buoyed by more recent events, like the consecration of the Ram Lalla idol at the Ayodhya temple, or in the unprecedented rush to the MahaKumbh celebrations in Prayagraj? If so, can it better termed as a renaissance of sorts, and if so, should we be worried about it, or apologetic about it?
As a family, over the years since my earliest childhood days, I can remember we had the installation of the Devi every navratra; as this installation had to be on the purest ground, the kitchen was chosen every year, as the food preparations were moved to a make-shift arrangement, for full nine days. The holy diya was lit, with no interruptions allowed all these days and nights, with every family member charged with the task of keeping a constant vigil ensuring the wick remained lit, with the oil sufficient at all times. Tying the religious mauli was a ritual that we all looked forward to, in the belief this was an act of being blessed. We, as a family, were never meant to share or talk about it, it was always a family affair. There was no meat or eggs cooked during those nine days, neither did we eat outside. The ninth day, after the devi had been taken out of the house for the religious visarjan, life was back with a bang, once again, with our cook ensuring it was worth our wait.
Since those days, I can now relate, in current times, that every other Hindu is wearing the mauli, or some version of it. The trend has grown to include black sacred threads – at every other local temple, there is a mix of such threads available, to be bought and energised and worn on your wrist. It has become almost a fashion to declare you are vegetarian as these are Navratri days; restaurants make it a point to promote Navratri friendly thaali and other offerings.
In the last few days, as the fervour of going to the Kumbh gathered pace, it was almost making a fashion statement that people were fondly mentioning their visit. I know of a person, never thought of him as religious, making three trips. I know of at least a dozen people who made their own pilgrimages, each of them happy and contented in the fact they did. Whatever be the final numbers that did the snan, regardless, the fact is that there were crores of people, not just Hindus, who made their tryst with divinity.
Is there a return of Hinduism? To each his own form of it, some on the fringe elements, who would make capital out of it. Others, mostly, happy to reclaim their past and heritage from which they had wandered off, for whatever reason – some because of a break from their heritage and roots, for reasons of western education, or not being sufficiently aware, and both inextricably linked to their religion. Is this an aggressive re-assertion? Not that one can make that of it, like one can see, only coming home, so to say. Should there be any reason for worry for any other communities? None that I can think of. Most Hindus would be happy to remain in their space, contented, giving and most accommodating of all faiths. But a Renaissance for sure, one that can and should lead to more affirmation of faith, proud to be a Hindu, no longer apologetic or reticent. And, moving to a higher realisation, proud of being an Indian!
Crowd Management and Carrying Capacity
One inevitable, and one can choose this last word with deliberate intent, result or fallout of this heavy influx of pilgrims to Kumbh must be the risk of stampedes. One fault line, however small, can create a ripple. Some ripples can multiply into tragedies. From all accounts the management had been well formulated, drawn in detail on the drawing board. We also have reports that the control room was interactive, willing and open to receiving feedback and make the requisite changes in the rule book. All to the good. An influx of such numbers had to be tested on the ground, no amount of planning can be adequate. With use of extensive manpower and technology, including drone management, and 24×7 aerial surveys, they did well from all accounts. Pilgrims who visited the Kumbh came back satisfied. There were toilets provided all around the ghats – these did become uncontrollably dirty, despite their best efforts, as Indians are prone to not keeping the loos clean, sorry to say, but important to admit.
But even then, managing crowds requires a science. There is no getting away from this fact. In fact, with this increase in events across the country, we need a faculty and professors specialised in crowd management. It is not a simple exercise. And it’s not for everyone to predict possible outcomes. Within crowds, managing emergencies is a further issue to learn. Like one ominous message at the railways station, last minute, suggesting a change of platform for the incoming train, that was to carry a few hundreds. Perhaps it may have been better to first announce a half hour delay, and then say it would arrive in 30 minutes on another platform. But such decisions cannot be left to be handled at the bottom of the pyramid of control management, which is where it matters most. Not to forget, these are super-charged travellers, with zero patience and trust that they will make it to the train, when many have not even been confirmed to travel.
Carrying capacity then becomes critical and managing crowds becomes that much easier if you have a maximum number in mind, and to manage the additional numbers by creating holding areas, with varying multiples.
ABOUT THE AUTHOR
Navin Berry, Editor, CS Conversations, over five decades has edited publications like CityScan, India Debates and Travel Trends Today. He is the founder of SATTE, India’s first inbound tourism mart, biggest in Asia.
