Join journalist Puja Mehra as she breaks down one story to give you all the context you need to understand how it fits into the larger picture of India's economy.
Why the RBI's Defence of the Rupee Is Becoming Unsustainable
In this episode of How India's Economy Works, journalist and author Puja Mehra speaks with economist Renu Kohli, formerly at the Reserve Bank of India and the IMF and currently senior fellow at the Centre for Social and Economic Progress (CSEP), about why the rupee continues to face depreciation pressure, even as India's economic growth remains strong and inflation relatively low. Kohli argues that the problem goes beyond oil prices and global uncertainty, pointing instead to persistent weakness in the capital account and India's difficulty in attracting and retaining foreign capital. She explains the costs of defending the rupee, the future liabilities created by foreign currency borrowings, and the risks that further monetary tightening could pose to consumption and growth.
The conversation also examines the lessons from India's 2013 currency crisis, whether the RBI needs to allow a more orderly adjustment in the exchange rate, and why policymakers must address the structural reasons behind weak capital inflows rather than rely on temporary interventions.
Tune in for insights on the rupee's depreciation, the RBI's foreign exchange strategy, India's balance of payments and the policy choices that could shape the country's economic outlook.
CHAPTERS
(00:00) RBI Defense of Rupee Introduction
(00:30) Unsustainable Interventions and Depleted Reserves
(02:00) Capital Account Versus Current Account
(03:55) Long-Term Repayment and Economic Costs
(06:05) Short-Term Tools and Foreign Exchange
(08:00) Emerging Balance of Payments Crisis
(10:45) Rate Hikes and Growth Risks
(12:45) Monetary Policy Committee Hiking Dilemma
(14:35) Comparing Taper Tantrum With Today
(18:40) Attracting Foreign Capital for Stability
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7 Oct 2026
The RBI Raised Rates. Then It Softened the Sting
The Reserve Bank of India has raised the repo rate and shifted its stance to “calibrated tightening”, signalling that rate cuts are unlikely even as future policy decisions remain data-dependent. But what does this mean for inflation, growth, borrowing costs and liquidity in the banking system?
In this episode of How India’s Economy Works, journalist and author Puja Mehra speaks with Madan Sabnavis, Chief Economist at Bank of Baroda, about the RBI’s latest monetary policy decision. Sabnavis explains why he had argued for delaying the rate hike, why he expects further increases, and how the RBI could manage the large surplus liquidity created by FCNR deposits.
They also discuss India’s dependence on foreign capital, the role of domestic savings in financing growth, why net FDI flows have remained lacklustre, and whether India can remain insulated from global financial conditions. Sabnavis also explains why economic forecasts are becoming increasingly dynamic as economists rely on high-frequency data and constantly changing global conditions.
Tune in for insights on interest rates, inflation, liquidity, foreign capital, domestic savings and India’s growth outlook.
CHAPTERS
(00:00) RBI Monetary Policy Review Introduction
(00:43) Contrarian Views on Rate Hike
(03:42) Defining Calibrated Tightening Monetary Stance
(05:12) Global Spillovers Versus Domestic Realities
(06:37) Capital Formation and External Funding
(08:36) Managing Systemic Surplus Banking Liquidity
(10:47) Dynamics of Modern Economic Forecasting
(12:50) Unanimous Vote and Key Surprises
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30 Sept 2026
India Needs Cheaper Capital. Indian Households Could Hold the Key
India’s households save a substantial share of their income, but much of that saving goes into physical assets such as gold and real estate rather than financial instruments. Why does this matter for the economy? And what does the composition of household savings have to do with investment, borrowing costs and economic growth?
In this episode of How India’s Economy Works, journalist and author Puja Mehra speaks with economist Vidya Mahambare, Union Bank Chair Professor of Economics and Director (Research and Fellow Programme In Management) at the Great Lakes Institute of Management in Chennai about India’s household savings and why financial savings are particularly important. They discuss why households save heavily in physical assets, the role of gold and housing, rising household financial liabilities, and why financial savings have increased but remain relatively small compared with physical savings.
They also examine whether tax policy creates different incentives for physical and financial savings, and discuss possible ways to encourage households to shift more of their savings into financial instruments without simply asking them to save more overall. Tune in for insights on India’s savings patterns, financial savings, household investment, borrowing costs and the policy changes that could reshape how Indians save.
CHAPTERS
(00:00) Introduction to Household Savings
(01:00) Domestic Savings and Investment Needs
(05:35) Financial Savings Lower Borrowing Costs
(07:16) Comparing Global Household Savings Rates
(09:35) Reasons for Physical Asset Dominance
(12:47) Rising Liabilities and Net Savings
(14:02) Distortions in Real Estate Taxation
(17:46) Ending Taxes on Financial Reshuffling
(21:44) Rebalancing Incentives Across Asset Classes
(24:20) Offsetting Fiscal Revenue via Agriculture
(27:12) Shifting Savings Composition Over Volume
For more of our coverage check out thecore.in (https://www.thecore.in/)
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Ashwini Phadnis
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Podcast Authority Score: 67 / 100
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100
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67
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