Loading...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 News - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ----
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ----
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ----
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    CCI approves acquisition of 100% share capital of Tao Digital Solutions by Cyient Ltd
    CCI approves acquisition of 100% stake in Kestrel Coal Group Pty Ltd. by Yancoal Australia from certain sellers
    HC bench releases Skoda Volkswagen USD 1.4 billion tax case sans verdict; matter to be heard afresh
    Canada strikes back at US with retaliatory tariffs as trade war escalates
    Rupee rises 26 paise to close at 95.44 against US dollar
    Economy shows resilience to global headwinds with buoyant domestic demand: RBI bulletin
    Goyal promises BIS certification relief for high-tech sector firms
    IICA Conducts inaugural session of 11th Batch of its Certified CSR Professional Programme
    Net Profit of Regional Rural Banks (RRBs) Rises to Record ₹10,176 Crore, Total Business Cross ₹13.5 Lakh Crore in FY 2025-26
    UP Cong chief writes to PM Modi on ethanol policy, sugar prices
    Economy shows notable resilience despite global headwinds: RBI bulletin
    Sugar prices rise by nearly Re 1 per kg to about Rs 64
    Trump says he's considering renaming Lake Ontario as 'Lake America' as trade war with escalates
    Flash Report on Central Sector Infrastructure Projects worth ₹150 crore and above
    HP minister warns orchardists against spurious PGRs sold in open market
    NEWS HIGHLIGHTS
    AERA cuts user development fee for domestic, int'l passengers at Hyderabad airport
    Rupee rises 24 paise to close at 95.46 against US dollar
    India pivots to US for LPG, LNG as West Asia crisis disrupts Gulf supplies
    Experts Call for Intelligence-Led Action to Break Cross-Border Illicit Trade Networks at ASIA Security Conference 2026
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

News
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
August 26, 2026
Show AI Summary
Competition clearance for full acquisition permits Cyient to acquire Tao Digital Solutions, a global digital transformation and technology services provider.
Competition Commission of India approved Cyient Limited's acquisition of 100% of Tao Digital Solutions Inc.'s share capital from its existing shareholders. The full share capital acquisition transfers complete ownership of Tao Digital Solutions to Cyient. Tao Digital Solutions provides global digital transformation and technology services, including product engineering, managed services, cybersecurity, payments, digitization and AI, cloud services, and data services, and operates in India through its wholly owned subsidiary, Tao Digital India Private Limited.
August 26, 2026
Show AI Summary
Competition clearance for full coal-sector acquisition addresses limited Indian market links through metallurgical and thermal coal sales.
Competition approval covers Yancoal Australia Limited's acquisition of 100% equity interest and warrants in Kestrel Coal Group Pty Ltd. The target holds an 80% interest in the Kestrel Joint Venture, which operates a Queensland coal mine producing principally metallurgical coal and a smaller volume of thermal coal. Neither the acquirer nor the target has a physical presence in India. Their Indian nexus is limited to coal exports and the joint venture's sales of metallurgical coal into India.
August 25, 2026
Show AI Summary
Customs classification of unassembled vehicle imports requires fresh hearing after reserved tax challenge was released without verdict.
The dispute concerns customs classification of imported unassembled vehicle parts. Customs authorities allege that parts imported in separate shipments should have been declared as completely knocked down (CKD) units, attracting the higher duty applicable to CKD imports, rather than as individual components subject to lower duty. The manufacturer contests the resulting customs demand. Proceedings have been released for fresh hearing before the regular indirect-tax writ bench, with status quo maintained for four weeks.
August 25, 2026
Show AI Summary
Retaliatory tariffs on imported goods escalate trade measures, targeting key sectors while maintaining support for affected domestic businesses.
Canada has imposed retaliatory tariffs on United States-origin industrial and consumer goods following increased United States tariffs on Canadian goods. Effective 8 September, the measures apply at rates of 15%, 25% and 50% across more than 700 products, including steel, aluminium, appliances, dairy products, seafood, furniture, clothing, pulp and paper, and electronics. Existing countertariffs on automobiles remain in force. The measures seek to protect domestic businesses and reduce imports, supported by assistance for affected workers and businesses amid risks to integrated cross-border supply chains.
August 25, 2026
Show AI Summary
Foreign-exchange market intervention and lower crude prices supported rupee appreciation, while USD/INR remained range-bound amid shifting dollar conditions.
Foreign-exchange market conditions supported rupee appreciation against the US dollar, driven by stronger domestic equity markets, a weaker US dollar and lower crude oil prices. The USD/INR pair remained broadly range-bound, with oil-price movements and Reserve Bank intervention identified as key near-term influences. The special USD-INR foreign-exchange swap facility for FCNR(B) deposits, overseas foreign-currency borrowings and external commercial borrowings mobilised substantial foreign-exchange inflows.
August 25, 2026
Show AI Summary
Section 301 tariffs may have lower impact where major exports remain outside their scope amid resilient domestic demand.
Economic resilience is attributed to buoyant domestic demand, increased manufacturing and services activity, improving liquidity conditions, credit growth, investment activity and rebounding foreign capital inflows. Recovery in the southwest monsoon improved kharif sowing and reservoir storage, partly mitigating agricultural-sector risks. US Section 301 tariffs are expected to have a comparatively lower effect because major Indian exports to the United States, including smartphones, petroleum products and pharmaceuticals, remain outside their scope. Foreign direct investment improved with higher gross inflows, while outward foreign direct investment continued to decline.
August 25, 2026
Show AI Summary
BIS certification exemptions may be structured for high-tech manufacturers to ensure timely equipment imports and support domestic manufacturing operations.
Mandatory Bureau of Indian Standards (BIS) certification requirements for equipment and components used by high-technology manufacturers may be addressed through a proposed exemption framework. Possible exemptions may be structured at the company, industry, product, project or bulk level to support timely availability of imported equipment, goods and services for manufacturing operations. The approach is directed at high-technology industries generally, particularly semiconductor and artificial intelligence sectors, while addressing delays associated with mandatory certification and complex procedures for specialised imported parts and equipment.
August 25, 2026
Show AI Summary
Corporate social responsibility should prioritise measurable community outcomes, transparency, capable implementing agencies, and strategic integration with sustainability objectives.
Corporate social responsibility should prioritise measurable community outcomes rather than expenditure alone. Effective CSR depends on community-responsive design, capable implementing agencies, rigorous monitoring, social audits, and transparent use of technology and data. Public sector enterprises may use thematic priorities, convergence with government programmes, and institutional collaboration to replace isolated interventions with strategic CSR. CSR capacity building encompasses legal and regulatory frameworks, governance, project planning, impact assessment, reporting, ESG and the Social Stock Exchange.
August 25, 2026
Show AI Summary
Regional rural bank performance highlights improved profitability, asset quality, priority-sector lending, financial inclusion, and digital banking expansion.
Regional Rural Banks achieved prescribed priority-sector lending targets and sub-targets, expanded financial inclusion through new Pradhan Mantri Jan Dhan Yojana accounts, and recorded improvement in profitability, asset quality, and credit-deposit ratio. Digital banking adoption is to be accelerated to improve operational efficiency, customer experience, and banking access in rural and remote areas. Sponsor Banks are expected to strengthen information-technology infrastructure and support increased area-specific credit flows and innovative lending.
August 25, 2026
Show AI Summary
Ethanol-blended fuel policy faces calls for consumer-focused review amid sugar supply pressures and older-vehicle compatibility concerns.
Consumer-focused review of the ethanol-blended fuel policy is sought because higher ethanol diversion may affect domestic sugar availability and prices, potentially requiring sugar imports that could reduce claimed foreign-exchange savings from lower petroleum imports. The review should address ethanol and sugar production, domestic prices, imports, and consumer, environmental and economic concerns. Availability of lower-blend fuel alongside E20 is advocated for owners of older vehicles, with consumer choice between E10 and E20 supporting a comprehensive reassessment.
August 25, 2026
Show AI Summary
Economic resilience remains supported by domestic demand, manufacturing, liquidity and capital inflows despite external trade and geopolitical risks.
Economic resilience is attributed to buoyant domestic demand, sustained manufacturing and services activity, and double-digit merchandise trade growth. Improved southwest monsoon conditions supported kharif sowing and partly reduced agricultural risks, although geopolitical frictions and fresh United States tariffs remained external risks. Supply-side pressures raised consumer price inflation, while stable core inflation indicated limited cost pass-through. Easing liquidity, credit growth, investment activity and rebounding foreign capital inflows supported financial and external-sector conditions.
August 25, 2026
Show AI Summary
Sugar price controls combine raw sugar imports, stockholding limits, and export restrictions to curb retail inflation.
Sugar market intervention combines permitted imports of raw sugar, stockholding limits for dealers and bulk consumers, and an existing export ban to address sharp increases in retail and wholesale prices. Limits on inventories held by trade participants and large industrial consumers are intended to curb speculation and hoarding. Although ex-mill rates declined after the import decision and anti-hoarding measures, the reduction had not yet translated fully into retail prices. The measures seek to supplement domestic availability and restrain practices that may intensify consumer-price increases.
August 25, 2026
Show AI Summary
Tariff escalation drives retaliatory planning, industry protection measures, supply-chain uncertainty, and proposed symbolic geographic renaming amid cross-border trade tensions.
United States-Canada trade tensions have intensified after tariffs were imposed on Canadian goods following unsuccessful bilateral talks. Canada is expected to pursue retaliatory measures, potentially using targeted action to protect workers and businesses rather than matching tariffs directly. Further tariff threats concern vehicles, auto parts and steel. Integrated cross-border supply chains in automotive, energy, agriculture and manufacturing face increased costs and consumer-price uncertainty. Consideration of renaming Lake Ontario as "Lake America" has also been linked to the escalating dispute.
August 25, 2026
Show AI Summary
Central infrastructure monitoring through PAIMANA-PROJ tracks implementation progress, sectoral priorities, completed works, and integration of newly monitored projects.
PAIMANA-PROJ monitors Central Sector infrastructure projects costing Rs. 150 crore and above across 17 Ministries and Departments. As of July 2026, 1,775 projects with a revised cost of Rs. 37.11 lakh crore were under monitoring, with cumulative expenditure of Rs. 19.26 lakh crore. Transport and Logistics formed the largest monitored sector, followed by Energy. The portfolio included mega and major projects at varying physical and financial completion stages. PAIMANA-CRIP serves as the central infrastructure-project data repository, with most data updated through APIs.
August 25, 2026
Show AI Summary
Plant growth regulator quality controls require farmer awareness, licensed sales, quarantine compliance, and protection against uncertified orchard inputs.
Plant Growth Regulator quality control seeks to protect farmers and orchardists from spurious products sold in the open market. Licensed pesticide and fungicide outlets receive application schedules, while farmer awareness is stressed due to purchases of cheaper PGRs that may not achieve expected results. Rootstock imports require quarantine clearance, and uncertified rootstock purchased from the market is associated with disease spread in orchards. Regulatory measures include direct departmental sale of branded chemicals, promotion of weather-based crop insurance, and demands concerning minimum support pricing and Market Intervention Scheme documentation.
August 25, 2026
Show AI Summary
Anti-conversion compliance prompts voluntary prayer declarations, alongside food-safety oversight and enforcement against demolition, liquor, and cyber-fraud allegations.
Maharashtra's anti-conversion law has commenced, and churches across the Mumbai Metropolitan Region have sought written self-declarations confirming voluntary prayer attendance without pressure. Food-safety oversight requires cleaning of cricket association eateries before a further inspection. Enforcement matters include investigation into unauthorised shop demolitions allegedly involving misuse of a municipal corporation's name, arrests connected with spurious-liquor manufacture, and a cyber-fraud network allegedly using mule accounts to launder proceeds. A retired High Court judge has been appointed as Lokayukta.
August 25, 2026
Show AI Summary
User development fee rationalisation reduces departure charges and links airport cost recovery to commissioned capital projects during the tariff cycle.
Airport tariff regulation for Hyderabad airport fixes reduced User Development Fee for departing domestic and international passengers from 1 September 2026 through 31 March 2031, with rationalised landing charges. The tariff determination applies the incremental Aggregate Revenue Requirement framework, linking airport-charge cost recovery to completion, commissioning and use of identified high-value capital expenditure projects. A variable tariff plan provides landing-charge incentives upon prescribed qualifying conditions, supporting traffic development and route expansion while requiring cost-reflective, transparent and non-discriminatory aeronautical tariffs.
August 25, 2026
Show AI Summary
Rupee appreciation reflects weaker dollar, lower crude prices, positive equities, and foreign-exchange inflows through swap facilities.
Foreign-exchange market conditions supported the rupee's appreciation against the US dollar, driven by positive domestic equity markets, a weaker dollar, and declining crude-oil prices. The USD/INR pair remained within a narrow range, with oil-price movements and potential central-bank intervention identified as near-term determinants. A special USD-INR foreign-exchange swap facility covering FCNR(B) deposits, overseas foreign-currency borrowings and external commercial borrowings had mobilised foreign-exchange inflows relevant to currency liquidity.
August 25, 2026
Show AI Summary
Energy supply diversification reshapes India's LPG, LNG and crude sourcing amid constrained Gulf availability and higher logistics costs.
India's energy-import sourcing has shifted towards supply diversification as disruption in the Strait of Hormuz constrained traditional Gulf supplies. United States cargoes have become particularly important for LPG and LNG, while procurement has also broadened to Atlantic Basin and other non-traditional suppliers. Diversification increases costs through longer voyages, higher freight, insurance expenses, tighter availability and higher commodity prices, reflecting a premium for supply security. Crude sourcing continues to rely principally on Russia, alongside resilient UAE flows and increased Venezuelan heavy crude imports.
August 25, 2026
Show AI Summary
Intelligence-led enforcement against illicit trade requires coordinated data-sharing, risk profiling, digital accountability and disruption of organised supply networks.
Cross-border illicit trade enforcement should move beyond isolated seizures to intelligence-led disruption of organised criminal networks. Risk-based profiling, predictive analytics, container scanning and shipment-data analysis should support targeted action against misdeclaration, port-hopping, concealment and digital distribution. Right holders should share specific intelligence with customs targeting mechanisms, and goods entering Domestic Tariff Areas from warehousing and special economic zones require enhanced examination. Digital enforcement should trace suppliers, financial flows, data trails and small-parcel movements, supported by coordinated feedback between online marketplaces, police and customs.

News

Back

All News

Showing Results for :
Reset Filters
No Records Found

News

Showing Results for : Reset Filters
Customs, DGFT & SEZ

New Frontiers in Economic Research (Keynote Address delivered by Michael Debabrata Patra, Deputy Governor, Reserve Bank of India - December 14, 2024 - in the Maldives Monetary Authority (MMA) Research Conference at Male, Maldives)

December 17, 2024

Contents
Summary
Note

Note

-

Bookmark

Print

Print

Governor Mr Ahmed Munawar, Maldives Monetary Authority (MMA), Dr Mahamood Shougee, Chancellor of the Maldives National University, Mr Ahmed Imad, Deputy Governor, MMA, other senior colleagues of the MMA, distinguished presenters and panelists and participants, ladies and gentlemen, good morning to all of you.

It is an honour for me to be invited to give the keynote address at this two-day Annual Research Conference of the MMA that is aptly themed: Advancing Economic Research: Policy and Innovation for a Sustainable Future. The impressive line-up of papers to be presented in the conference will shine light on to this topical theme. In my address today, I wish to focus on some new frontiers in economic research and their relevance for policy making globally, but with a focus on the Global South.

Economic inquiry is characterised as the spirit of exploration in a continual quest to understand the invisible hand that transforms livelihoods, shapes societies, and defines humanity’s aspirations. In that sense, economists have always been cartographers of unyielding trade-offs and impossible trinities in their profession of studying mankind in the ordinary business of life, as Alfred Marshall famously defined economics. The lives of economists are complicated by the fact that underneath their feet, the ground is always shifting and reshaping economic constructs, information stocks and flows, and available tools. Today, we stand on the cusp of an era being redefined as much by the boundless possibilities of technology and innovation as the risks of climate change and deglobalisation. For the economics profession, therefore, as the Greek philosopher Heraclitus remarked, “Change is the only constant.”

Our research has to adapt not only to today’s tectonic shifts but also to new frontiers to be traversed tomorrow. Against this backdrop and in the interest of time, I will focus on four emerging areas of research that, I believe, will redefine human behaviour and hence economic research.

I. Redefining Technology Shocks in Economic Models

The rapid spread of digitalisation has been transformative, reshaping the way we live and work, the interactions between economic agents, production processes and market structures. Digitalisation can be regarded as a long-term technology shock impacting economic growth, productivity, labour markets, older technologies and inflation. It is estimated that the global digital economy already accounts for more than 15 per cent of global GDP. 2 Generative artificial intelligence (Gen-AI) alone is projected to boost global GDP by $7-10 trillion over the next three years.3 To capture these evolving dynamics, empirical research methodologies must evolve to be able to understand and assess the underlying relationships and implications.

Despite the potential of digital technologies to drive productivity through efficiency, growth has consistently fallen short of expectations. This has given rise to antithetical scenarios of slow innovation diffusion.4 Recent studies have deepened the debate, highlighting the uncertainty around AI’s impact on productivity and economic growth.5 This productivity puzzle could be pointing to research gaps in growth decomposition models as well as in the received wisdom in explaining sectoral productivity shifts and the distributional effects of technology shocks across regions and income groups.

Digitalisation’s long-term impact on employment appears benign so far, but its disruptive effects on labour markets have drawn considerable attention.6 Population ageing may further accelerate adoption of digital technologies. With AI set to affect 40 per cent of global jobs, education, retraining and social safety nets will be crucial.7 Within central banks too, recruitment and retention of FinTech talent are becoming major challenges, with 64 per cent struggling to recruit and 68 per cent facing retention issues.8 The ambit of research need to expand to examine digitalisation-driven labour reallocation, job-matching efficiency, new vistas of job creation such as in data science, and digitalisation’s role in boosting female workforce participation through remote-friendly jobs.

Digitalisation’s impact on economic variables relevant to monetary policy requires close monitoring, particularly its effect on inflation due to differences between online and offline prices, potentially steepening the Phillips curve, and hence, warranting a reassessment of traditional inflation models.9 Research interest is being drawn to examining how financial innovations like digital payments, FinTech, central bank digital currencies (CBDCs) and AI can reshape monetary policy transmission and affect financial stability. Dynamic methods and big data analytics like web-scraping, text mining, large language techniques and machine learning frameworks (e.g., tree-based models and neural networks)10 are becoming vital for macro-financial analysis and monetary policy tech.

II. Climate Change and Macroeconomic Stability

Climate change is manifesting itself at an alarming scale and pace globally. It is affecting growth and price stability through supply shocks such as food and energy shortages and through a decline in productive capacity. Recurrent climate-related shocks are leading to inflation volatility, un-anchoring inflation expectations. Demand shocks also arise due to the loss of wealth of firms and households on account of frequent natural disasters, with attendant financial stability risks. Physical and transition risks can affect the balance sheets of financial institutions and banks, limiting the flow of credit to the real economy. In fact, transition risks can operate through multiple channels, exacerbating traditional risks in all categories, including credit, market, liquidity, operational and reputational risks for banks and financial institutions. Mitigation and green transition policies such as carbon pricing can also affect price stability, potentially precipitating large and long-lasting movements in relative prices and shifts in trend inflation. Depreciation pressures on currencies of countries frequently affected by climate disasters can also cause financial instability, higher import costs and negative terms of trade.

The range of policy options available to mitigate climate risks require dedicated research, especially in the context of the complex, non-linear ways in which climate, the real economy, financial systems and markets interact and affect each other. Improved inter-disciplinary macroeconomic modelling is becoming crucial for understanding directions of causality and feedbacks.

III. Globalisation and the Natural Rate of Interest

Monetary policy making has evolved in line with structural changes in the economy and the financial system. Inflation targeting (IT) – the longest surviving modern monetary policy framework - is no exception. This could be attributed to the ‘rule-based’ principle built into the framework alongside elements of “flexibility” that have evolved in practice. It has been argued while the application of a core set of "scientific principles" has expanded significantly in practice, there remains, and will likely always remain, elements of art in the conduct of monetary policy11.

One principle followed by central banks in setting policy rates is the natural rate of interest – popularly known as R-star. It is a theoretical benchmark for monetary policy, reflecting the real interest rate that supports the economy at full employment while keeping inflation low and stable. This concept of R-star or the natural rate dates back to 189812 and currently forms an integral element of modern macroeconomic frameworks. It is argued in a seminal work that “a central bank should seek to close the gaps between actual economic conditions and the economy’s potential for output and employment (y-star and u-star, respectively) as well as the gap between the actual real interest rate and the natural rate (R-star), all at the same time to obtain an optimal outcome”.13 The problem is that R-star or any of the other stars in that formulation are fundamentally unobservable. Formal efforts to estimate the value of R-star14 have been refined over the years in terms of estimation approaches as well as by accounting for structural changes and country-specific features.

It is widely believed that historically, R-star has declined, especially in advanced economies, due to factors like aging populations, lower productivity growth, and excess global savings. More recently, however, the view gaining ground is that post-pandemic dynamics – in particular, overlapping shocks - have reversed some of these trends. This is observed, for instance, in the real time measure of R-star released by the New York Fed on its website15. A better understanding of the reasons behind the post-pandemic reversal and this recent disconnect from history will be useful for monetary policy setting in an uncertain future.

Global economic conditions add complexity to an accurate assessment of R-star. Advanced economies face sluggish growth amidst changing labour market dynamics, stubborn services inflation, and fiscal policy uncertainties, all of which could be imparting upsides to R-star. Emerging and developing economies may be experiencing upward pressure on their R-stars due to stronger economic activity and investment as well as productivity differentials. They, however, face challenges from geo-economic fragmentation and geo-political uncertainty as well as global supply chain disruptions and financial market volatility. Central banks across the globe are therefore, reassessing how these global factors could be driving shifts in R-star to ensure that monetary policy remains effective in an interconnected world.

IV. Consumption Patterns and their Economic Impact

The rapid progress in information and communication technology (ICT) is contributing significantly to shortening the ‘space-time flow’ of circulation of capital – allowing it to move faster and grow larger.16 The growing usage of digital financial platforms and tools is also shaping the behaviour of households in multifarious ways.

First, with the proliferation of digital products and social media platforms, there has been a marked shift from in-person shopping to online shopping. E-commerce is growing rapidly, with online sales accounting for a significant portion of retail sales in many countries. The pandemic gave a distinct push to online shopping, which has sustained its growth momentum even in the post-pandemic period. In 2023, e-commerce accounted for over 19 per cent of retail sales worldwide. Forecasts indicate that by 2027, the online segment will make up close to a quarter of total global retail sales.17 The global annual retail e-commerce sales growth is projected to reach 9 per cent in 2024 from 6 per cent in 2022.18 This rise of e-commerce has also led to a shift in favour of digital goods and services.19 To illustrate, the global number of users of video streaming services has increased from 0.6 billion in 2017 to 1.4 billion in 2024, with a similar uptrend seen for music streaming and digital news services.20

Secondly, the proliferation of digital consumption has also been accompanied by a shift in saving and investment decisions such as online brokerage accounts, robo-advisors, investment apps and the like, as they are easier, faster and more informed. Digitalisation has also influenced borrowing patterns of households, with greater and easier access to fintech companies for digital loans, and by reducing information asymmetries through a wide range of sources, including tax returns, electronic toll collection, and bill payments.21

At the same time, these newer technologies pose challenges for monetary and regulatory policy formulation. First, the shift from traditional modes of savings can affect the transmission of monetary policy impulses to the real economy.22 Second, central banks need to be vigilant about the possibilities of debt escalation and risk build-up at the household level.23

Third, there is evidence to suggest that the buy-now-pay-later and credit card-based spending can facilitate immediate consumption, especially for younger generations and lower their savings.24 Fourth, there can be concerns of mis-selling of financial services to households due to poor digital financial literacy.25

These shifts in consumer behaviour may require central banks and policymakers to transition from traditional macroeconomic models to agent-based modelling, integration of behavioural economics, nowcasting, policy simulations and advanced liquidity stress tests. They also need to equip themselves with cutting-edge computational tools like machine learning and big data analytics to examine the real-time, high-frequency data received from digital platforms.

V. Conclusion

As we journey towards new frontiers of economic research, I am reminded of the words of John Maynard Keynes: "The difficulty lies not so much in developing new ideas as in escaping from old ones”.

Economic research is like exploring a dense forest: each new finding clears a path, but also reveals deeper mysteries. As we prepare, like the starship Enterprise, in the famous sci-fi television series Star Trek, to boldly go where no man has gone before, I am reminded of the words of T.S. Eliot: 'Only those who will risk going too far can possibly find out how far one can go'. In recent years, economic research is increasingly being equipped with multi-disciplinary frameworks, forward-looking and computationally intensive analytical tools, and high dimensional data. So let us venture into the unknown with a commitment to redefine what is possible, to make the complex comprehensible, and to transform our understanding of the forces that shape human experience.

Thank you.

---

1 Keynote Address delivered by Michael Debabrata Patra, Deputy Governor, Reserve Bank of India (RBI) in the Maldives Monetary Authority (MMA) Research Conference on December 14, 2024 at Male, Maldives. Valuable comments received from Pallavi Chavan, Binod B Bhoi, Harendra Behera, Soumasree Tiwari, Ranjeeta Mishra, Sakshi Awasthy, Kaustav Sarkar, Purna Banerjee, Nisha Singh, Sandeep Kaur, and editorial help from Vineet Kumar Srivastava are gratefully acknowledged.

2 United Nations. (2023). Opening Session of Global Development Initiative Digital Cooperation Forum.

3 JP Morgan. (2024). Is Generative AI a Game Changer?

4 Brynjolfsson, E., and McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. WW Norton & Company; Haldane, A. (2017). Productivity Puzzles. Speech at the London School of Economics; Summers, L. H. (2013). Speech at the IMF 14th Annual Research Conference in Honor of Stanley Fisher. International Monetary Fund, 8

5 Goldman Sachs. (2024). Gen AI: Too Much Spend, Too Little Benefit Report.

6 ECB. (2021). Digitalisation: Channels, Impacts and Implications for Monetary Policy in the Euro Area.

7 IMF. (2024). Gen-AI: Artificial Intelligence and the Future of Work Report.

8 33 banks participated in the survey. Source: Central Banking Institute. (2024). Fintech Benchmarks 2024 - The Promise and Threat of AI.

9 Ari, M. A., Garcia-Macia, M. D., & Mishra, S. (2023). Has the Phillips Curve Become Steeper? IMF, WP/23/100

10 Tree-based methods are flexible machine learning algorithms that can tackle a wide range of tasks. Decision trees group individual data points by sequentially partitioning data into finer categories according to specific characteristics of interest. Neural networks’ main building blocks are artificial neurons, which take multiple input values and transform them in a non-linear way to output a single number – like logistic regressions. Source: BIS. (2024). Artificial Intelligence in Central Banking.

11 Mishkin, Frederic S. (2007). Will Monetary Policy Become More of a Science? NBER Working Paper 13566, October.

12 Wicksell, K. (1936). Interest and prices. Ludwig von Mises Institute.

13 Woodford, M. (2003). Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press.

14 Laubach, T. and Williams, John C. (2003). Measuring the Natural Rate of Interest. Review of Economics and Statistics, November, Vol. 85, No. 4, pp. 1063-1070.

15 https://www.newyorkfed.org/research/policy/rstar

16 Digital financial system allows more and larger transactions to be completed in a shorter period. Paraná, Edemilson. 2018. Digitalized Finance: Financial Capitalism and Informational Revolution. Leiden and Boston: Brill.

17 eMarketer; Statista.

18 eMarketer; Statista.

19 International Monetary Fund (IMF).2020. World Economic Outlook: A Long and Difficult Ascent. October 2020.

20 Statista Market Insights.

21 International Monetary Fund (IMF). 2020. Global Financial Stability Report. October.

22 Beck, T., Cecchetti, S. G., Grothe, M., Kemp, M., Pelizzon, L., & Serrano, A. S. 2022. Will video kill the radio star? Digitalisation and the future of banking. European Systemic Risk Board.

23 Pengpeng, Y., Korkmaz, A., Zhichao, A. and Haigang Z. 2022. The rise of digital finance: Financial inclusion or debt trap? Finance Research Letters. 47(Part A).

24 Cornelli, G., Gambacorta, L. and Pancotta, L. 2023. Buy now, pay later: A cross country analysis. BIS Quarterly Review, December 4, 2023.

25 Morgan, P., Huang, B. and Trinh, Long. 2019. The need to promote digital financial literacy for the digital age. Policy Brief under T20 Japan Task Force 7. March 31, 2019.

Topics

Acts Income Tax