Why India’s economy is stumbling

The current government, which took office in 2004, has made two fundamental errors.   First, it assumed that growth was on autopilot and failed to address serious structural problems. Second, flush with revenues, it began major redistribution programs, neglecting their consequences: higher fiscal and trade deficits. Read More

India Continues To Miss Key Health Targets

  Highlights  *12th Plan allocation for Health Ministry is Rs 300,018 crore or approximately Rs 60,000 crore per year *National Health Mission gets the largest pie; around Rs 38,681 crore every year *12th Plan targets include reducing infant mortality rate to 25 per 1,000 live births and  maternal mortality rate to 100 per 1 lakh … Continued

June quarter GDP growth at 4.4%

India’s economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing.   June’s figure of 4.4% was the slowest growth since the Jan-March quarter of 2009. Read More

Easy reforms over, time now for difficult ones: PM

Prime Minister Manmohan Singh said the Government will now have to undertake more difficult reforms, including reduction of subsidy and implementing goods & services tax (GST), to put the economy back on the path of stable, sustainable growth.   “The easy reforms of the past have been done. We have the more difficult reforms to … Continued

All you wanted to know about new land acquisition bill

There is unanimity of opinion across the social and political spectrum that the current Law (The Land Acquisition Act 1894) suffers from various shortcomings. Some of these include:   Forced acquisitions: Under the 1894 legislation once the acquiring authority has formed the intention to acquire a particular plot of land, it can carry out the … Continued

Slowdown not only due to RBI: Subbarao

RBI Governor D Subbarao strongly refuted all arguments that the central bank failed to control inflation and ended up stifling growth.   Subbarao said: “Core inflation has declined to around 2%. Yes, growth has moderated, but to attribute all of that moderation to tight monetary policy would be inaccurate, unfair, and importantly, misleading as a … Continued

Looking back at the original sin

The seeds of the current situation were perhaps sown in 2009 when the Group of 20 (G20) expressed concern about global imbalances, a euphemism for Chinese surpluses, and emphasized market-determined exchange rates. The call was aimed at China, the expectation being that the yuan would appreciate if allowed to float, and help reduce Chinese external … Continued

The corrupt journey of food transportation

No one — including the Union Government — seems to know how much the implementation of the Food Security Bill will cost per year — Rs 25,000 crore? Rs 100,000 crore? Rs 200,000 crore? What every Indian with a double digit IQ, however, knows for a fact is that much of the grains sent off … Continued

RBI should consider monetising gold: Anand Sharma

Trade Minister Anand Sharma said the Reserve Bank of India (RBI) should look into suggestions that it monetise its gold reserves to reduce imports and dollar outflows that have hammered the rupee, but emphasised it was for the bank to decide.   India has 557.7 tonne of gold in its reserves, making it the eleventh … Continued