Current economic problems in the Indian economy are being presented by the Government as created entirely by the direct and indirect effects of the global financial crisis. Even the industrial slowdown is being blamed on the adverse impact of the global slowdown upon manufacturing exports. But, as C. P. Chandrasekhar and Jayati Ghosh show in this edition of Macroscan (published in The Hindu Business Line), the official data suggest that the industrial slowdown started well before the effects of the external crisis began to be felt in India.
Some observers are of the view that the sharp fall in the month-on-month annual rate of industrial growth in August 2008 exaggerates the actual and likely slowdown in the growth. C. P. Chandrasekhar and Jayati Ghosh discuss why the broad trend suggested by the index may not be too far off the mark.
Courtesy: Hindu Business Line
While India is not likely to face a financial meltdown of the kind that was nearly experienced in the US, the global financial crisis will certainly have an impact. In this edition of Macroscan, C. P. Chandrasekhar and Jayati Ghosh consider the possible negative effects of the crisis on India and whether the Government’s response so far has been appropriate. Courtesy: Business Line.
As those responsible for a financial crisis do not have to pay for it, they have no compunction about creating once again the conditions that caused it.
The National Rural Employment Guarantee Act has now been in operation for more than two years, even though it is still being extended to all the rural areas of the country.
In that relatively short time, it has already become one of the most avidly studied programmes of the Central Government, with many independent evaluations in different States as well as government audit of its performance thus far.
Global capitalism has now entered a new phase, one that is unprecedented in its history. And the core of the capitalism – the US economy - has certainly entered uncharted territory particularly in the financial sector. The still-unfolding financial crisis has already gone way beyond the predictions of even relatively pessimistic observers, and now threatens actually to cause a financial collapse at the heart of the international economy.
The last two decades have seen the gradual erosion of US and EU dominance in hi-tech manufacturing. The principal challenger has been and remains China. India, unfortunately, has lagged far behind, though capabilities generated during the import substitution years have given it some recent gains in global markets, argue C. P. Chandrasekhar and Jayati Ghosh, in The Hindu Business Line. Article courtesy, The Business Line.
Such is the power of the media, that in recent months, the very names of Singur and Nandigram in West Bengal have become synonymous with forcible land acquisition by the state all over India. This is truly remarkable, because in fact no land was ever actually acquired for industrialisation in Nandigram after the violent protests against it. And it is widely acknowledged that the terms of acquisition of the 1000 acres required for the Tata automobile factory in Singur were the most favourable for the peasantry, of any such acquisition across India.
Despite the apparent public complacency regarding the balance of payments, there are reasons to be concerned about recent trends. In this edition of Macroscan published in the Business Line, C. P. Chandrasekhar and Jayati Ghosh specifically examine tendencies in the current account and assess their significance for the immediate future. Article courtesy, Business Line newspaper.
One of the more depressing features of government policy in the social sectors in India is the extent to which it relies on the unpaid or underpaid labour of women.