Rajeswari Sengupta|Ideas for India

Rajeswari Sengupta
Indira Gandhi Institute of Development Research
Dr. Rajeswari Sengupta is an Assistant Professor of Economics at the Indira Gandhi Institute of Development Research (IGIDR) in Mumbai, India. In the past she has held research positions at the Institute for Financial Management and Research (IFMR) in Chennai, the Reserve Bank of India, and the International Monetary Fund (IMF) and the World Bank in Washington D.C. She was a member of the research secretariat for the Bankruptcy Law Reforms Committee (BLRC) that recommended the Insolvency and Bankruptcy Code for India. Her research focuses on policy-relevant, macro-financial issues of emerging market economies in general and India in particular in the fields of international finance, open economy macroeconomics, monetary policy and financial markets and regulations. She is currently working on several issues pertaining to the Indian economy such as inflation targeting, monetary policy transmission, capital controls and capital flows, GDP measurement issues, financial stress in the corporate and banking sectors, and firm financing. She has published in reputed international journals such as Economic Policy, The Journal of International Money and Finance, The World Economy, Emerging Markets Review, International Review of Economics and Finance, Pacific Economic Review, Open Economies Review as well as the Economic and Political Weekly in India.

Dr. Sengupta completed her M.A. and Ph.D. in Economics from the University of California, Santa Cruz (UCSC). She holds two previous degrees in Economics from India, a Bachelors degree from Presidency College, Calcutta and a Masters from Delhi School of Economics. Details of her work can be found here.

Articles By Rajeswari Sengupta
Communicating uncertainties in GDP data
Posted On: 19 Feb 2018

Topics:   Economic Growth
Tags:   GDP , data

In recent times there has been a lot of controversy around the accuracy and reliability of Indian GDP estimates. In this article, Amey Sapre and Rajeswari Sengupta contend that much of this confusion stems from the lack of publicly available information about the sources and margins of errors and data quality. Communicating the limitations of official data to the public in a credible and transparent manner may mitigate the extent of uncertainty around GDP estimates.
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Studying revisions in Indian GDP data
Posted On: 28 Nov 2017

Topics:   Economic Growth
Tags:   GDP , data

The GDP numbers for a given year undergo a sequence of revisions based on data availability. The periodic revisions are meant to reveal the true picture of the economy, and affect macroeconomic forecasting and policymaking. Large, frequent, and uncertain data revisions can raise questions of data credibility and lead to imprecise inputs for policymaking. In this article, Sapre and Sengupta highlight several issues in the revisions in India's GDP series.
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Bank financing of stressed firms
Posted On: 07 Jun 2017

Topics:   Finance

There is anecdotal evidence that banks in India have been extending credit to highly distressed firms. By delaying recognition of bad loans, banks may improve their own profitability in the short run, but in the long run, this has only exacerbated the non-performing asset crisis in the banking sector. This column provides preliminary empirical evidence that banks have indeed been throwing good money after bad.
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Will demonetisation lead to a protracted economic slowdown?
Posted On: 15 Dec 2016

In this article, Pandey and Sengupta argue that the impact of the contractionary demand shock triggered by the note ban will gradually radiate from cash-intensive activities to virtually every sector of the economy.
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GDP conundrum: Is India booming?
Posted On: 16 Nov 2016

Topics:   Economic Growth
Tags:   GDP , data

Rajeswari Sengupta, Assistant Professor at IGIDR, points out that the methodology used for the new GDP series seems to be underestimating the GDP deflator, which in turn is causing real growth to be overstated, perhaps by as much as 2 percentage points.

This is the second of a four-part series.

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A macro view of India’s currency ban
Posted On: 15 Nov 2016

The recent ban on high-value currency notes has taken the country by storm. While much is being written about the pros and cons of this announcement in terms of the effect on black money, logistical costs, and the immediate inconvenience faced by the public, there is little or no discourse on the macroeconomic implications. In this article, Rajeswari Sengupta, Assistant Professor of Economics at IGIDR, discusses the impact of this move on money supply, output and prices, in the short- and medium-term.
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Inflation targeting: A long way to go
Posted On: 18 Jul 2016

The Finance Bill, 2016, amended the Reserve Bank of India (RBI) Act, 1934, to define inflation targeting as the primary objective of the central bank. In this article, Rajeswari Sengupta, Assistant Professor at IGIDR, contends that to actually become an inflation-targeting central bank, RBI will need to undertake a series of reforms to build institutional capabilities and improve the monetary policy transmission mechanism.
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The nuances of inflation targeting in India
Posted On: 16 Mar 2015

How prepared is India for inflation targeting? This column suggests that the larger weight assigned by the RBI to tackling inflation over the years, relative to other policy objectives such as stabilising exchange rates, places it in a good position to make the transition to the new regime. However, limited control over supply shocks that impact inflation might continue to pose a challenge. Greater coordination between fiscal and monetary policy would improve the efficacy of inflation targeting.
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Corporate debt market in India: Issues and challenges
Posted On: 19 May 2014

Topics:   Finance
Tags:   credit

While it is true that the Indian corporate debt market has transformed itself into a much more vibrant trading field for debt instruments from the elementary market that it was about a decade ago, there is still a long way to go. This column systematically lays down the issues and challenges facing the corporate debt market in India.
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Exchange rate movements and Indian firms’ exports
Posted On: 01 Nov 2013

Understanding the effects of exchange-rate changes on a country’s trade balance calls for an analysis of how exchange-rate fluctuations affect the decisions of individual firms. This column explores the effects of changes in the exchange rate on the share of exports of Indian non-financial sector firms.
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The challenges of opening up India’s capital account
Posted On: 15 May 2013

A key objective for any open economy is to avoid a financial or balance of payments crisis – a goal that often calls for trade-offs between liberalisation and maintaining control of the economy. This column explores the trade offs India has made.
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Understanding India’s monetary policy
Posted On: 21 Dec 2012

From the outside looking in, it may seem that India’s central bank is making up its own rules, making it difficult to predict the next movements in the interest rate. This column argues that the central bank is in fact following a rule, you just have to look hard enough.
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