ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

GDPSubscribe to GDP

Using Public Procurement Strategically

The article examines policy decisions and practices in public procurement in India during the pandemic, and finds that bureaucracy could not use public procurement strategically and relied upon archaic and centralised management of procurement to (mis)handle the pandemic. The article also offers some lessons from China’s procurement designs and calls for a major reform in this sector in India.

Lessons from Sri Lanka

Ethnocracy and concentration of power can derail even an affluent nation.

Impact of Leverage on Firms’ Investment

It has been observed that the economic growth cycle coincides with the investment cycle in India. It is found that firm-level leverage could provide early signals about the movements in the investment cycle. Furthermore, a firm’s leverage adversely affects its investment activity after a threshold. Regression results, after controlling for firm’s price to book ratio and operational variables, indicate that the adverse impact of high leverage is predominant on low-growth firms. The initiatives to clean up the balance sheets of banks and deleveraging by non-financial corporates should help in the revival of the investment cycle. The results are consistent with the agency cost of debt and trade-off theory of capital structure, wherein firms set targets for leverage by balancing costs and benefits of debt.

Labour ‘Invisibility’ during COVID-19 Times

As the migrant labour exodus unfolded with unrelenting grimness through the summer of 2020, there was frequent mention of how the COVID-19 pandemic had exposed the “invisibility” of migrant labour to Indian planners and policymakers.

Banking Sector Resilient in the Face of Pandemic

Contrary to several gloomy forecasts, the Indian banking sector has been surprisingly resilient in the face of the pandemic. This is because corporates, which account more than half the loans, are in better shape and banks are well-capitalised. This bodes well for loan growth and bank performance post the pandemic.

Rollback of Market Economics

Industrial policy has been rehabilitated globally despite the ideological bias.

Environmental Accounting in India

Does the present income accounting system represent the real value of the wealth of the economy? If not, how do we evaluate the performance economy? How can the present evaluation method accommodate different aspects of the economy, society, and the environment? If these aspects are not considered in the evaluation process, can it be justified socially or environmentally? In this paper, we discuss the limitations of conventional income accounting, recent developments in environmental accounting at the international level, the progress and challenges of environmental accounting in India, and the way forward.

The Lost Decades

The government must reimagine the fundamentals of the economy in favour of equality.

A Tax Reform Gone Awry

The continuous cuts in the goods and services tax rates will derail state finances.

COVID-19 and the Sri Lankan Economy

COVID-19 has been rapidly spreading across the globe, taking thousands of lives and bringing hundreds of economies to a standstill. Its initial impact on China’s economy and China’s consequent slowdown may have adverse economic impacts on the rest of the world as well. This article examines the impact of COVID-19 on the Sri Lankan economy, focusing on the sectors such as national output and employment, tourism, exchange rate and financial market and social and welfare.

India and the RCEP

COVID-19 has widely affected global supply and value chains, and specific sectors around the world. In this scenario, the options for India to optimise its regional and global value chain linkages with the Regional Comprehensive Economic Partnership are examined, which in turn could aid in its post-pandemic recovery.

Evolving Contours of Monetary Policy

Monetary policy has emerged as an important tool of economic policy both in developed and developing economies. The monetary and financial system is far more complex today than it has been in the past. Financial intermediation has reached a high level of sophistication, which has itself become a source of concern. The impact of monetary policy action can be transmitted through a variety of channels, some of which though recognised in the past, have become more important. While the traditional issues such as the objectives of monetary policy and the possible trade-off among them remain relevant, they need to be related to the far-reaching changes in the institutional environment at home and abroad. The changing objectives of monetary policy, newly evolving instruments of monetary control and the transmission mechanism and issues related to autonomy in the pursuit of monetary policy are examined.

Pages

Back to Top