Editorials · 26 August 2026 · Indian Economy

Fair pricing could help sustain UPI network

Tamil Nadu can lead India on revenue reform

The article discusses Tamil Nadu's initiative to form a high-level Revenue Augmentation Committee, chaired by Montek Singh Ahluwalia, aimed at modernizing the definition and management of state revenue. It highlights the need for Tamil Nadu to strengthen its own-tax and non-tax revenues, improve fiscal buoyancy, and achieve greater fiscal self-reliance, given a decline in its own-tax revenue as a percentage of GSDP. The author advocates for adopting international standards, specifically the IMF's Government Finance Statistics Manual (GFSM 2014), to clearly distinguish genuine government revenue from financing activities like borrowing and asset sales. The article suggests that by improving tax administration, reviewing user charges, royalties, and returns from public assets, Tamil Nadu can establish a sustainable revenue base and set a benchmark for other Indian states and the Union government in public financial management reform.

Root causes: On India’s youth crisis

The article discusses India's youth crisis, linking it to high costs of competitive exam coaching, declining undergraduate enrollment, and a severe youth employment problem. It attributes these issues to structural problems in the Indian economy, particularly the stagnant manufacturing sector's share in Gross Value Added (GVA) and a significant decline in corporate investment. The author argues that mere free coaching is insufficient and calls for increased public investment in industrial capacity, export-driven industrial support, and a more balanced regulatory environment to create jobs.

Prepare for crude prices above $100

The article warns of crude oil prices potentially rising above $100 per barrel due to sustained disruptions in the Strait of Hormuz. It highlights that while the world isn't running out of oil, logistical challenges, increased marine insurance, and freight costs are creating a global supply shock. Alternative routes and strategic reserves offer limited relief, as the problem lies in the ability to deliver crude efficiently and affordably. The article emphasizes the inflationary impact on importing economies like India, which, despite its flexibility in sourcing, remains vulnerable to delivery security issues. It suggests monitoring tanker movement, insurance costs, regional crude premiums, and product market stress as key indicators.