India's Finance Ministry proposes new regulatory framework

The proposed Financial Stability and Development Authority, chaired by the Finance Minister, would supposedly allow greater regulatory coordination across existing regulators such as the RBI and SEBI. But would it reduce their independence? Already, the RBI is not as independent of the Ministry as academic orthodoxy would suggest is optimal.

India's New Chief Economic Adviser

Kaushik Basu has been chosen as Chief Economic Adviser in the Finance Ministry. A very exciting appointment that bodes well for India. Here is a story on the appointment.