Reserve Bank of India

This paper quantifies how shocks at strategic maritime chokepoints propagate into vessel traffic, capacity, and route choice, and when apparently temporary disruptions become persistent through port‑congestion hysteresis. Using high-frequency PortWatch IMF data, this study analyzes 70,728 observations across eight major chokepoints spanning 2019–2025, covering three structurally distinct disruptions: the COVID-19 demand shock, the Ever Given–induced Suez blockage, and the Red Sea security crisis. Our empirical strategy combines difference-in-differences (with event-study dynamics), interrupted time-series segmented regression for recovery trajectories, and state-dependent interaction models that allow treatment effects to vary with pre-shock capacity utilisation and vessel composition. Results indicate sharp heterogeneity by shock type and cargo: COVID-19 reduced daily chokepoint-level traffic by 16.5

Using a triple difference estimation strategy, we compare the labour market outcomes of men and women before and just after the implementation of extended maternity leave policy across age profiles of individuals, in India. We find a negative impact of the maternity leave extension policy on the employment of women in high-fertility age cohorts. To explain this intuitively, we adapt a stylized micro-founded model of life-cycle search and matching friction in a gendered environment where the additional cost burden of maternity leave is borne by the firms, as is the case in India. We argue that if the firm’s cost from longer maternity leave duration outweighs the gain from retaining a worker, then the probability of being employed for fertile-age female workers decreases; via increased reservation productivity and decreased market tightness. Our empirical results and theoretical framework underscore the fact that even a well-intended policy design must be cognizant of underlying labour market dynamics to avoid exacerbating gender differences in labour markets.

This study examines the short-run and long-run relationships between energy trade, energy mix, and total trade balance across 24 high-income economies (1990–2023), addressing a critical gap in the literature. While previous studies explore energy prices and trade flows, limited research has analyzed the direct causal impact of energy trade balance on macroeconomic trade stability. This study fills that void using rigorous econometric techniques, including instrumental variable regression, panel cointegration models, and country-level heterogeneity analysis, ensuring empirical robustness. The findings indicate that energy trade balance is a key determinant of total trade balance, with crude oil and petroleum trade exerting the most significant influence. In the short run, renewable energy adoption increases trade deficits due to infrastructure costs, but in the long run, it reduces trade imbalances by lowering fossil fuel reliance. Regional heterogeneity is evident, with EU economies exhibiting higher trade sensitivity to energy fluctuations than non-EU nations. Policy recommendations emphasize energy trade diversification, strategic renewable investments, and efficiency-driven carbon policies to enhance trade stability. This research provides a data-driven foundation for energy-trade policy formulation, offering novel insights for macroeconomic stability, energy security, and sustainable global trade governance.

This research investigates the role of digitalization in fostering economic recovery and stability across ASEAN-SAARC nations during major crises, including the Asian Financial Crisis, the Global Financial Crisis, and the COVID-19 pandemic. The study is motivated by the growing recognition of digitalization as a transformative force, yet its uneven impact across regions with diverse economic and technological contexts remains underexplored. Using a comprehensive panel dataset spanning three decades, the research employs fixed effects regression and quantile regression strategies to assess the relationship between digital penetration and key economic indicators, such as GDP per capita growth, GNI, trade, and unemployment. The findings reveal that higher levels of digitalization significantly mitigate the adverse effects of crises, with the impacts being more pronounced in advanced ASEAN economies compared to SAARC nations. The analysis highlights the heterogeneity in digitalization's influence, underscoring its potential to foster equitable growth when coupled with targeted policy interventions. This study contributes novel insights by examining digitalization's temporal and contextual dynamics, offering actionable recommendations for bridging regional disparities and enhancing resilience. By integrating both real and market economic perspectives, this research provides a robust framework for understanding how digitalization can serve as a cornerstone for sustainable recovery in crisis-affected economies.

The role of the Reserve Bank of India (RBI) in foreign exchange management has changed since independence. From strict control of foreign exchange resources before the balance of payments crisis of 1991, it moved to a more liberalized exchange rate management system, with a focus on current and capital account convertibility. It operates in spots, forwards and futures markets, both onshore and offshore, generally through agency banks. The intervention becomes critical during turbulent periods, from the global financial crisis to the Russia–Ukraine conflict. This article outlines recent market trends and enumerates a series of initiatives taken by the RBI since the early 1990s for the development of the foreign exchange market. The article concludes with a discussion on some recent measures for the internationalization of the rupee. JEL Classification: G01, G15, G18