Summaries by Deep Mukherjee

RBI's new market risk directions mandate increased capital via a simplified standardized approach, aligning India with Basel 3. While offering compliance ease, the author warns against banks slackening internal risk management. The capital buffer might disincentivize advanced banks from developing sophisticated risk assessment capabilities, hindering support for complex corporate financing. This could lead to "market risk management atrophy" and future economic vulnerability. The author suggests nudging frontier banks towards internal models to ensure robust domestic capacity in a complex global environment.

India aims for a $30 trillion economy by 2047, but significant growth volatility, largely from external shocks, challenges this. The author argues that mere resilience is insufficient; India needs an "anti-fragile" economy that strengthens under stress. This requires focused policies across five areas: planned redundancy, learning from disruptions, decentralization, ensuring decision-makers have "skin-in-the-game," and strategic national bets. Competitive federalism, parallel digital systems, and a barbell investment strategy are vital. Embracing anti-fragile thinking is crucial for India to achieve its ambitious Viksit Bharat aspiration amidst a shock-prone global environment.