An autonomous research institute under the Ministry of Finance

 

The Rise of Thematic Bonds: Innovative Financing for the SDGs

22/11/2025

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In 2015, at the time of adoption of Sustainable Development Goals (SDGs), it was estimated that a total annual investment of USD 3.9 trillion will be required to achieve the goals by 2030.1 The level of investment in key SDG-related sectors was estimated to be USD 1.4 trillion per …


The Net Interest Margin Paradox: Navigating Profitability, Risk Aversion, and Credit Growth for Indian MSMEs

13/11/2025

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The influence of Net Interest Margin1 (NIM) on credit lending2 has long been a widely discussed topic. A consistently healthy NIM is vital because it provides banks with the necessary buffer to absorb credit risk, thus encouraging a greater capacity and willingness to lend, particularly to segments perceived …


India's New GST and the Inverted Duty Problem

31/10/2025

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The decision to simplify India's Goods and Services Tax (GST) into a primary two-slab system of 5% and 18% is a huge win for tax reform1. This highly anticipated shift replaces a complex, multi-tiered architecture and is expected to boost the economy by making compliance easier, globally competitive, …


Analysing RBI’s AI Framework

31/10/2025

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As artificial intelligence reshapes global finance, central banks face a pivotal choice: integrate AI deeply into core monetary policy reaction functions or confine it to supportive operational roles? India's Reserve Bank (RBI) offers a compelling model with its Framework for Responsible Emerging AI in the Financial Sector (FREE-AI).

RBI’s FREE-AI …


Close to a Trade Deal: Braving Trump’s Oil Sanctions and Tariff Storm

28/10/2025

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India’s deft navigation through global economic turbulence highlights its resilience amid President Trump’s aggressive trade and energy policies. However, can India grow the way we want, given the global headwinds? To me, the impact of these headwinds are transient, however it makes India brilliantly stoic in dealing with economic diplomacy …