Daily English Vocab
PDF 7th March 2017
No time for complacency
India’s economy is defying the pessimists, and the time is ripe to deepen structural reforms.
The Indian economy continues to outperform the prognosis (पूर्वा नुमवन) of its critics. This is clearly
true of the GDP growth estimates in the third quarter; quite at variance (असगं ति) with what the
critics of the demonetisation exercise had assumed. No doubt there could be correction in the fourth
quarter, primarily to factor the impact of the informal sector. It has never been easy to capture real
time data on economic activity in the informal sector. It is recognised that apart from leads and
lags, the conclusions are derivative using surrogates which detract both from their timeliness and
accuracy. This is not a new problem and past estimates of GDP numbers have also suffered from
multiple ex-post corrections as and when data becomes unavailable.
Digitisation dividend
Hopefully, moving towards greater digitisation and reducing dependence on cash transactions will
accelerate the pace of financial inclusion and formalisation of the informal economy.
Notwithstanding these, the dark prognosis of a collapse of GDP growth numbers, widespread
unemployment and displacement of job workers coupled with rural distress now looks clearly
misaligned with actual outcomes. The GDP estimates are supported by two other crucial
independent international assessments last week. The first from the Article IV Consultations 2017
of the International Monetary Fund (IMF) and the second from the biennial Economic Survey of
the Organisation for Economic Cooperation and Development (OECD). Both these have distinct
commonalities. Both conclude that Indian economic growth is robust, propelled by consumption
demand and accelerated structural reforms. Both favourably allude to a rule-based framework of
aligning macroeconomic policies with global standards.
The overall macroeconomic framework, notwithstanding challenges, remains robust and credible.
Continued fiscal consolidation, a modest current account deficit, subdued (तनयंतिि) inflation,
enhanced public and private consumption somewhat offsetting the depressed private investment
support this conclusion. These augur well for continued growth buoyancy. The downside risks of
exogenous (derived or originating externally) shocks from sharp increases in commodity prices,
particularly oil, a sudden global slowdown impacting remittances and exports or unpredictability
relating to the Chinese economy now look modest. The growth projection of 7.5% (the higher side
of the 6.75-7.5% range forecasted in this year’s Economic Survey) for the next fiscal is however
contingent (occurring or existing only if (certain circumstances) are the case; dependent on.)
(तनर्ार/सर्
ं वव्य) on resolving several short-term challenges.
Macro policies
First, the OECD’s survey raises concerns about India’s large interest payments due to the high
levels of public debt as compared to other emerging economies. This is in consonance (आनुरूप्य)
with the suggestions of the Fiscal Responsibility and Budget Management (FRBM) Review
Committee chaired by me, which projects a declining debt-to-GDP ratio to approximately 60% by
2023. Analysts believe this may be our near optimum debt levels. While the Committee’s report
is not yet in the public domain, there is broad consensus that the preferred trajectory of debt with
enabling fiscal deficit targets is central to macroeconomic stability. India has come a long way in
discouraging fiscal profligacy (reckless extravagance or wastefulness in the use of resources.).
The realization that we are best served by improving the quality of public expenditure than
enhancing budgetary outlays reflects responsible leadership. It is increasingly cognizant of the
inherent vulnerabilities of a fragile economy like ours. No doubt fiscal rectitude (righteousness.)
must be combined with space to enhance public outlays, particularly in infrastructure, health and
education.
Second, the health of the banking and financial sector. The twin balance sheet problem of both
corporates and banks, highlighted in the Economic Survey, has a relationship but would need
differentiated actions. Easing one will no doubt ameliorate (सध
ु वरनव) the other but policy
frameworks are not necessarily symmetrical. The concept of a centralised Public Sector Asset
Rehabilitation Agency (PARA) envisaged as a ‘Band Bank’ spin-off model has gained some
traction. It would, however, be naïve to believe that this represents a systemic solution to the
ailments of the banking sector. The classic issues of not confusing between the stock and the flow
would need to be addressed. Besides, it is not easy to overlook moral hazard questions when it
comes to taking an ‘appropriate haircut’ by all stakeholders and without assigning responsibility
for the ills of the past.
Are we assured that they will not resurface in altered garbs? The governance architecture
embedded in several actions and intended autonomy cannot be totally divorced from the ownership
pattern. Creating an enabling political milieu (environment) for deeper reforms is inescapable.
Expecting the ruling party alone to invest excessive political capital in this endeavour will have
little traction. At the same time, a belief that the present trajectory of banking reforms is adequate
to address the deeper malaise (परेशवनी) of the sector would be misplaced. The Indradhanush I has
distinct positives. The Indradhanush II is in the offing, post the Asset Quality Review to be
completed by March 31.
Rule-based management
In this context, creating an institutional framework or mechanism to seek broader consensus has
some advantages. This also ties up with what the OECD’s Economic Survey and the IMF’s report
describe as a progressive move to a more rule-based management of the economy. The constitution
of the Monetary Policy Committee, GST Council, Banks Board Bureau, are robust examples.
Could we, for instance, consider the constitution of a Banking Council to facilitate a dialogue with
political parties and stake holders on a new banking road map? Extensive analytical work by
several committees and commissions like the Narasimham Committee, P.J. Nayak Committee,
Gopalakrishna Committee, to mention a few, have critically examined the past and suggested
future actions. This Council could debate, discuss, and seek to fortify the ingredients of the ongoing
initiatives. In this endeavour, seeking consensus on a forward banking reform path would be the
principal mandate of the Banking and Finance Council. The problem is somewhat complicated, by
the Reserve Bank acting as the principal banking ombudsman (an official appointed to
investigate individuals' complaints against a company or organization, especially a public
authority.) with inherent conflict of interest. In the long run, we need an alternative mechanism
for the banking sector. This will not happen overnight; far-reaching structural changes need
perseverance (persistence in doing something despite difficulty or delay in achieving success.)
and tenacity (दृढ़िव/अटलिव). Fortunately, this government has the mindset to move away from
micromanaging the economy.
The GST transformation
Finally, for a change, balanced regional development and combining growth with employment has
received extensive attention in both these reports. No doubt, the GST (Goods and Services Tax)
regime and decisive move towards formalisation of the economy using technology would reduce
disparities.
Local government entities need greater empowerment. These go beyond the enhanced devolution
(descent to a lower or worse state.) (पतिि हो जवनव) of resources based on the recommendation of
the Thirteenth Finance Commission, more importantly of the Fourteenth Finance Commission.
Making grants available in two parts — a basic grant and performance grant — will make a
difference. Enabling local bodies to impose and realise property taxes and other levies would
strengthen their financial viability. In fact, the Fifteenth Finance Commission, yet to be constituted,
while reviewing the implementation of past recommendations can consider incentivising States on
empowerment and delegation of powers to local bodies. Seeking to replicate best governance
practices in labour and product markets among the States could also prove beneficial in mitigating
inter-State growth divergence. There are other recommendations in the IMF and OECD reports
relating to education, health, and tax changes, to name a few, which deserve separate treatment.
It would be dangerous if the decision-making ethos (the characteristic spirit of a culture, era,
or community as manifested in its attitudes and aspirations.) is stymied (prevent or hinder
the progress of.) (रोकनव) by growing complacency. The future may look bright but pursuing and
deepening structural reforms is the way forward. The political leadership is sagacious
(समझदवर/बुतिमवन) in recognising this. After all, as Albert Einstein once said, “We cannot solve our
problems with the same thinking we used when we created them.”
Courtesy: The Hindu (Economy)
1. Prognosis (noun): A forecast of the likely outcome of a situation. (पूर्वा नुमवन)
Synonyms: Forecast, Prediction, Projection, Prognostication, Prophecy.
Example: Since the cancer has already spread through Jim’s body, his life expectancy prognosis
is quite poor.
Verb forms: Prognosticate, Prognosticated, Prognosticated.
Related words:
Prognosticate (verb) - Make a prediction about; tell in advance
Prognostic (adjective) - Of or relating to prediction; having value for making predictions
2. Variance (noun): The fact or quality of being different, divergent, or inconsistent. (असगं ति)
Synonyms: Difference, Variation, Disagreement, Divergence, Deviation, Contrast.
Antonyms: Agreement, Harmony, Sameness, Concurrence.
Example: Global warming is being blamed for the unusual variance in rain patterns throughout
the globe.
Related words:
Variant (adjective) – असंगति
3. Subdued (noun): Overcame, quietened, or brought under control. (तनयंतिि)
Synonyms: Controlled, Restrained, Chastened, Repressed, Quashed.
Antonyms: Aroused, Uncontrolled.
Example: Since the dog was not properly subdued with the restraints, it was able to bite the
veterinarian.
Verb forms: Subdue, Subdued, Subdued.
Related words:
Subdue (verb) - hold within limits and control
4. Contingent (adjective): Occurring or existing only if (certain circumstances) are the case;
dependent on. (तनर्ार/सर्
ं वव्य)
Synonyms: Dependent, Conditional, Subject To, Based On, Determined By, Hinging On.
Antonyms: Unconditional, Independent.
Example: According to my supervisor, the job promotion is contingent upon my ability to pass
the management exam.
5. Consonance (noun): Agreement or compatibility between opinions or actions. (आनुरूप्य)
Synonyms: Agreement, Concord, Accord, Accordance, Harmony, Unison, Conformity.
Antonyms: Disagreement, Discord, Disunity, Dissonance, Incompatibility.
Example: The consonance of the committee was clear when they voted to unanimously elect a
new treasurer.
Related words:
Consonant (adjective) – अनक
ु ू ल/ अनरू
ु प
6. Profligacy (noun): Reckless extravagance or wastefulness in the use of resources. (अपव्यतयिव)
Synonyms: Extravagance, Wastefulness, Prodigality.
Antonyms: Economy, Frugality.
Example: After the millionaire saw evidence of his new wife's profligate spending, he quickly
filed for a divorce.
Related words:
Profligate (adjective) – अपव्ययी
7. Ameliorate (verb): Make (something bad or unsatisfactory) better. (सध
ु वरनव)
Synonyms: Reform, Rectify, Amend, Correct.
Antonyms: Harm, Hurt, Damage, Worsen.
Example: By using Vocab24 app, not only did you ameliorate your grades, but you also found a
way to enjoy learning.
Verb forms: Ameliorate, Ameliorated, Ameliorated.
Related words:
Amelioration (verb) - सधु ार
Ameliorative (adjective)- सधु ारात्मक/सधु ारने योग्य
8. Tenacity (noun): The quality or fact of being very determined; determination. (दृढ़िव/अटलिव)
Synonyms: Persistence, Pertinacity, Determination, Perseverance, Strength of will, Firmness.
Antonyms: Weakness, Non-Adhesiveness.
Example: Without tenacity, you will not be able to crack the exam, which you have dreamt.
Related words:
Tenacious (adjective) - अटल
Tenaciously (adverb) – दृढ़िापर्ू वक
9. Malaise (noun): A general feeling of discomfort, illness, or unease whose exact cause is
difficult to identify. (परेशवनी)
Synonyms: Restlessness, Uneasiness, Discomfort.
Antonyms: Calmness, Comfort.
Example: Many citizens who live near the contaminated lake are complaining of a malaise that
keeps them bedridden.
10. Stymie (verb): To present an obstacle to : stand in the way of/prevent or hinder the progress
of.(रोकनव)
Synonyms: Impede, Hinder, Obstruct, Inhibit, Stop, Block, Cripple.
Antonyms: Aid, Assist, Forward, Help, Support.
Example: Progress on the project has been stymied by lack of money.
Verb forms: Stymie, Stymied, Stymied.
11. Sagacious (adjective): Having or showing keen mental discernment and good judgement;
(समझदवर/बुतिमवन)
Synonyms: Wise, Shrewd, Clever, Intelligent, Discerning.
Antonyms: Foolish, Ignorant, Stupid.
Example: Many agree that replacing typewriters with computers is a sagacious idea because
computers make typing, editing, and proofreading easier.
Related words:
Sagaciously (adverb) - समझदारी से
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