Dualism and its discontents

News: Covid has substantially sharpened economic dualism in India. Poverty rates are increasing and government needs to focus on the expansion of job opportunities in both the formal and informal segments India has been characterised by significant economic dualism and disparities over many years. Dualism indiciates co-existence of two different worlds. Economic dualism therefore denotes… Continue reading Dualism and its discontents

Inside India’s asset monetization gambit

Synopsis: The recently rolled out NMP project, though has the right intent, but is fraught with challenges. A look at some of them. What are some issues with the National Monetization Pipeline (NMP) project? While the Niti Aayog has listed assets worth ₹6 trillion for the NMP, by its own estimate, it can only raise about ₹3.4… Continue reading Inside India’s asset monetization gambit

Sarkar’s Reform Mode: On various economic reforms by the govt.

What is the news? In the last few months, the government has become more aggressive towards reform as evidenced by several recent policy changes. Introduction The post-Covid, or rather the living-with endemic-Covid world offers major opportunities for India to accelerate its economic growth momentum again. This economic growth alone will get us out of the… Continue reading Sarkar’s Reform Mode: On various economic reforms by the govt.

The irrelevance of Indian GDP estimates to most of our citizens

Synopsis: Economic recovery is unlikely to prove sustainable when most basic indicators of human development show a worsening of our situation. Introduction Estimates of gross domestic product (GDP) for the first quarter of fiscal year 2021-22 were released on 31 August. This year’s first-quarter estimate shows a 20%-plus GDP growth. However, the real issue is… Continue reading The irrelevance of Indian GDP estimates to most of our citizens

Where’s The V-Shaped Recovery?

Synopsis: Govt should recognize the evidence of distress and job loss in India. V-shaped recovery is still far away. Introduction According to the government, India’s economy is bright and strong since headline GDP grew 20% in the recent quarter after falling 24% in the same quarter last year. However, it is important to evaluate the… Continue reading Where’s The V-Shaped Recovery?

The economic reforms — looking back to look ahead

Synopsis: Systemic policy reforms are required to unlock creativity and innovation in the economic system, raise the total factor productivity (TFP) and to achieve higher growth. Introduction The crisis caused by the pandemic in the country and at global level has led to a debate about new approaches to manage the economy and the future… Continue reading The economic reforms — looking back to look ahead

Key priorities for employment policy 

Source: This post is based on the article “Key priorities for employment policy” published in Business Standard on 30th August 2021.  Relevance: Employment Generation in India and Employment strategy for India. Synopsis: Measures that generate income for the poor are more important than modifying the applicability threshold for labour laws.  Context Several decades of relatively high… Continue reading Key priorities for employment policy 

Government Constitutes a Committee for doubling the production and quadrupling the exports of handlooms in a span of 3 years

Source: PIB What is the News? The Government of India has constituted a committee on the occasion of National Handloom Day for doubling the production and quadrupling the exports of handlooms in a span of 3 years. About the Committee for the Handloom Sector: Headed by: Sh. Sunil Sethi, Chairman, Fashion Design Council of India… Continue reading Government Constitutes a Committee for doubling the production and quadrupling the exports of handlooms in a span of 3 years

Rs 935 crore misappropriated in NREGA schemes in last four years, show data from Govt

Source: Indian Express What is the news? According to data sourced from the Management Information System (MIS) of the Ministry of Rural Development, in the last four years, Social Audit Units (SAU) under Rural Development Departments (RDD) across India have found financial misappropriation of Rs 935 crore under various schemes of the Mahatma Gandhi National… Continue reading Rs 935 crore misappropriated in NREGA schemes in last four years, show data from Govt

What India’s informal sector needs right now?

Source: Indian Express Relevance:  Formalization of work force, problems faced by informal sector workers Synopsis: Ignoring problems in the informal sector can be costly as it can lead to job and wage losses, higher inflation and even risk the livelihood of migrant workers. Context Informal sector workers suffered far more from the national lockdown in… Continue reading What India’s informal sector needs right now?

Finding work is work in progress (COVID’s impact on jobs)

Source: Times of India Relevance: Dealing with economic implications of COVID Synopsis: Reversing the pandemic hit to the job market is only a first step. The real jobs challenge still lies ahead. A brief look at the impact of COVID on the job market and the future challenges. Context Economy is coming to pre-covid level… Continue reading Finding work is work in progress (COVID’s impact on jobs)

Start up and Stand Tall (On India’s start-up ecosystem)

Source: Indian Express Relevance: Demographic dividend and role of start-ups in Indian economy Synopsis: India@75 is on the height of change and, it needs a golden era of global entrepreneurship, technology, and innovation for India@100. Context While India has historically and culturally been an entrepreneurially-driven nation, the last decade-and-a-half has witnessed a significant change in… Continue reading Start up and Stand Tall (On India’s start-up ecosystem)

Learning from China (On economic growth & development)

Source: Indian Express Relevance: Agriculture reforms on the line of China are necessary to improve living standards Synopsis: The focus of India’s economic policy has to be on quality education, skill development, and agriculture reforms. Lessons from China. Context Post independence we have achieved several milestones like, reducing poverty, improving literacy, increasing life expectancy etc.… Continue reading Learning from China (On economic growth & development)

Our GDP needs the HDP

Source: Indian Express Relevance: Achieving sustainable and inclusive growth for all. Synopsis: Despite the progress achieved in the field of technology; inequality and deprivation are still an important issue that needs to be addressed in India. Measuring Human Development Product might be a solution because GDP just indicates economic growth, while Human Development Product can… Continue reading Our GDP needs the HDP

Animal Spirits Are Back (On upsurge in investment)

Source: Times of India Relevance: Private investment to boost economic growth post-COVID Synopsis: The post-demonetisation, post-GST, and post-Covid economy is witnessing the rise of a new middle sector among Indian companies, that want to grow. Context The pandemic that caused economic damage all over the world has led most governments to provide enormous stimulus support… Continue reading Animal Spirits Are Back (On upsurge in investment)

The foreign stimulus

Source: Business Standard  Synopsis: Foreign money pouring into the start-up universe may finally provide the stimulus to the economy that the government was unable to provide. This money would help the country to achieve a sustained growth rate of 7% for the coming years. Background: The Indian start-up scene is on fire. In the first six… Continue reading The foreign stimulus

Our broken growth model is in acute need of some repair work

Source: Live Mint Relevance: Battling the slowdown in Indian economy Synopsis: Solving India’s chicken-and-egg problem of income and investment will take government action. Background India was expected to grow in double digits in 2021-22. However, most double-digit economic growth forecasts for the current financial year have been cut to single digits. For instance, the International… Continue reading Our broken growth model is in acute need of some repair work

Explained: Why China’s growth has slowed to a record low

News:According to China’s National Bureau of Statistics,the Chinese economy grew by just 6% in the third quarter of the current calendar year. Facts: China’s growth slowdown China’s growth rate has been slowing down since the global financial crisis of 2008-09.  However,China had recovered quickly and got back to double-digit growth in 2010-11 but since then… Continue reading Explained: Why China’s growth has slowed to a record low

Explained: How Bangladesh’s economic growth is stealing India’s thunder

News:The economic outlook update released by the Asian Development Bank(ADB) has shown how Bangladesh is the standout economy in terms of growth momentum in South Asia. Facts: What did the report said? The report has said that Bangladesh has been experiencing high and consistently rising economic growth rate while maintaining a stable level of inflation.… Continue reading Explained: How Bangladesh’s economic growth is stealing India’s thunder

RBI says lack of domestic demand affecting ‘animal spirits’ of economy

According to the annual report of the RBI,the lack of domestic demand is holding back the animal spirits in the economy.  Animal spirit is a term used by the British economist,John Maynard Keynes to describe how people arrive at financial decisions including buying and selling securities in times of economic stress or uncertainty. The report… Continue reading RBI says lack of domestic demand affecting ‘animal spirits’ of economy

Centre responds to downturn with steps to boost growth

Government has announced a number of economic measures which seeks to revive economic growth through fiscal stimulus. These measures were brought in the backdrop of the economic slowdown in India.The measures announced are:- The surcharge announced in the budget on Foreign Portfolio Investors (FPIs) has been withdrawn.This will check the outflow of FPI from India.… Continue reading Centre responds to downturn with steps to boost growth

Worsening water quality reducing economic growth by a third in some countries: World Bank

The World Bank has released a report on the relation between water pollution and economic growth. The report relied on the biggest-ever database assembled on global water quality using monitoring stations, satellite data and machine learning models. According to the report,poor water quality is affecting economic growth and worsening health conditions.It says that a lack… Continue reading Worsening water quality reducing economic growth by a third in some countries: World Bank

PM’s panel rejects former CEA’s paper on GDP growth

PM Economic Advisory Council(PMEAC) has challenged former chief economic advisor(CEA) claim that India’s gross domestic product (GDP) was overestimated for most of this decade. Recently,former CEA had said that India’s GDP growth in the period 2011-12 to 2016-17 is likely to have been overestimated.He said that the growth during that period was actually 4.5% rather… Continue reading PM’s panel rejects former CEA’s paper on GDP growth

‘Ex-CEA’s paper does not consider key indicators

According to former planning commission member,former Chief Economic Advisor(CEA) analysis of economic growth is incorrect. He said that the analysis ignores the indicators related to the bulk of economic activity such as those measuring the agriculture,services and informal sectors. Recently,former CEA had said that India’s GDP growth in the period 2011-12 to 2016-17 is likely… Continue reading ‘Ex-CEA’s paper does not consider key indicators