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

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The Need for Saving Livelihoods for Saving Lives

The pandemic has led to the loss of many livelihoods due to the economic crisis. In order to curb the ongoing economic crisis from aggravating further, an international fiscal coordination worldwide is the need of the hour.

A Performance Appraisal of the Inflation Targeting Regime

The recently published Report on Currency and Finance, 2020–21 of the Reserve Bank of India reviewed the performance of the flexible inflation targeting regime in India. In the light of stylised facts, cross-country experience, and detailed econometric results, the report seemed to suggest that despite several shocks (like demonetisation or introduction of the goods and services tax), a combination of good policy and luck have worked in favour of the success of the FIT regime in India. Going forward, while advocating some nuanced, subtle changes in the operation and administration of the FIT regime, the report called for its continuation as a strategy of monetary policy in India.

Reading K N Raj in the Age of Free Market Fundamentalism

This article tries to assess how K N Raj would have weighed in on some of the major contemporary issues like the trade policy, farm crisis and reprivatisation of public sector banks on the basis of his many writings. It also highlights his views on the fundamental orientation that an academic discipline like economics needs to have for contemporary social relevance.

Bad Bank, Bad Loans and the Indian Banking Mess

This article looks into the reasons for the large non-performing assets of the Indian banks, particularly public sector banks, and the various steps taken by the government and the Reserve Bank of India to tackle the issue of bad debts. It also examines if a bad bank is the magic wand that can...

Growth Transitions in India

Growth has consistently remained a central topic in economic policy considerations of the government in India. However, there has also been a more scholarly interest in it among social scientists. As a part of the latter tradition, this paper addresses the proper delineation of the phases of growth in India, a matter of some discussion in the literature. Using state-of-the-art statistical methodology, it first establishes the trajectory of growth and then provides a theoretical explanation for that history. With data spanning the period 1950–2020, the procedure adopted is also able to assess the impact on economic growth of the policies of the present government. The results are conclusive. First, it is established that growth in India has accelerated continuously since the 1950s, implying that dynamism in the economy did not have to wait for the liberalising reforms launched in 1991. Next, the performance of India’s economy is compared to growth that has taken place in the rest of the world. It is seen that while India’s economy has, in recent years, shown a dynamism relative to the rest of the world, it has consistently fallen behind its most dynamic regions, notably in East Asia.

Hostile Takeovers

The number of mergers and acquisitions has boomed in India since liberalisation, but few hostile takeovers have succeeded, primarily because of the concentration of promoter shareholding in companies and because takeover regulations favour promoters. Hostile takeovers would facilitate M&A growth, and the success of hostile takeovers is essential to facilitate corporate competence and foster capital market development. To be effective, the anti-takeover mechanisms in India should be practised as a protectionist measure and the takeover regulations must adopt a lenient approach towards hostile takeovers, as in the United States.

Garnering the Fiscal Stimulus

The share of resources distributed in the stimulus package to the farmers and labourers is very less as compared to other stakeholders of the economy. As public policy is influenced by bargaining power through intense lobbying, low distribution of resources towards farmers and labourers could be due to their low bargaining power. Collective action is required to bargain or lobby for resources. The farmers are adversely placed with regard to collective action because the transaction cost of organising collective action is higher but their ability to bear the cost is lower. The industry is placed in a much better position on both these counts. The inability of farmers to provide critical minimum resources for collective action may further weaken their bargaining position.

Reviving Industrial Growth

The Indian economy faces an uphill task of reviving industrial growth in the post-pandemic scenario. The early onset of domestic slowdown and global disruptions have affected the industrial sector, both in terms of demand and supply factors. What is required at this juncture is not a set of scattered short-term policies, but a coherent heavy lifting of the sector through demand injection and stimulation, because the slowdown started much earlier and is structural in nature.

Understanding the Indian Regulatory State

Regulation in India: Design, Capacity, Performance edited by Devesh Kapur and Madhav Khosla, New Delhi: Hart Publishing, 2019; pp 448, ₹ 602 (paperback).

COVID-19 Lockdown: Protecting the Poor Means Keeping the Indian Economy Afloat

Recognising the strong link between work and poverty, and the crucial role the working poor play in the functioning of the larger economy, it is imperative for the government to roll out adequate measures in order to mitigate the adverse impact of the unprecedented economic inactivity.

India’s Exclusionary Road to Inclusive Development

A historical look at India’s consumer expenditure survey reveals a rather sombre picture of development.

The Economy without RCEP

India’s moving out of the Regional Comprehensive Economic Partnership is less likely to heal its ailing economy.

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