CHAPTER 07 Clothes and Shoes: Can India Reclaim Low Skill Manufacturing?
Introduction Creating jobs is India’s central challenge Generating rapid economic growth is one critical element of the policy response; nurturing an enabling environment for investment is another; and targeted action yet another. India needs to generate jobs that are formal and productive, provide bang-for-buck in terms of jobs created relative […]
CHAPTER 06 Fiscal Rules: Lessons from the States
Most states achieved and maintained the target fiscal deficit level (3 percent of GSDP) and eliminated the revenue deficit soon after the introduction of their Fiscal Responsibility Legislation (FRL). However, the FRL was not the sole impetus behind this impressive fiscal performance. Acceleration of GDP growth, increased transfers from the […]
CHAPTER 05 Fiscal Framework: The World is Changing, Should India Change Too?
Fiscal Framework: The World is Changing, Should India Change Too? Introduction There has been a steady decline in the fiscal deficit from 4.5 percent of GDP in 2013-14 to 4.1 percent, 3.9 percent, and 3.5 percent over the successive three years. After Global Financial Crisis(GFC) the monetary easing has run […]
Economic Survey Chapter 04 The Festering Twin Balance Sheet Problem
The Festering Twin Balance Sheet Problem Introduction Last Year, Banks reported that nonperforming assets had soared, to such an extent that provisioning had overwhelmed operating earnings. As a result, net income had plunged deeply into the red. Normally, nonperforming assets (NPAs) soar when there is an economic crisis, triggering widespread […]
Economic Survey CHAPTER 03 Demonetisation: To Deify or Demonize?
CHAPTER 03 Demonetisation: To Deify or Demonize? I. Introduction On November 8, 2016, the government announced a historic measure, with profound implications for the economy. The aim of the action was fourfold: To curb corruption; To curb counterfeiting To curb the use of high denomination notes for terrorist activities To […]
CHAPTER 11 Powering “One India”
Powering “One India” Renewable energy targets have been revised from 32 GW to 175 GW by 2022 In the latest round of auctions under the National Solar Mission, tariffs reached an all-time low of R4.34/kWh. Grid parity for solar generation is on its way to becoming a reality. daunting challenges […]
CHAPTER 08 Preferential Trade Agreements
Preferential Trade Agreements While remaining committed to multilateralism, India like many other countries, has negotiated a series of free trade agreements (FTAs), notably with trading partners in Asia FTAs have led to increased imports and exports, although the former has been greater the average effect of an FTA is to […]
CHAPTER 07 Fiscal Capacity for the 21st Century
Fiscal Capacity for the 21st Century Fiscal capacity—spending and especially taxation—is key to long run economic development. Simple tax-GDP and spending-GDP ratios suggest that India under-taxes and under-spends relative to comparable countries. India does stand out in the number of individual income taxpayers, currently about 4 percent, far from our […]
CHAPTER 06 Bounties for the Well-Off
Bounties for the Well-Off these schemes and policies provide a bounty to the well-off of about R1 lakh cror e The government spends nearly 4.2 per cent of GDP subsidising various commodities and services. “SMALL” Savings created to mobilise saving by encouraging “small earners” to save, and offered abovemarket deposit […]
CHAPTER 05 Mother and Child
Mother and Child where would it invest ? relatively low-cost maternal and early-life health and nutrition programs offer very high returns on investment because: (i) the most rapid period of physical and cognitive development occurs in the womb, so in utero and early-life health conditions significantly affect outcomes in adulthood; […]