Economic Times ⁽²¹⁸⁾

The quota regime that has governed the exports of textiles and clothing from developing countries to the United States, European Union (EU) and a few other developed countries for nearly four decades will meet its demise on January 1, 2005. Is India ready to capture a much larger share of exports to these markets? Read full article The quota regime that has governed the exports of textiles and clothing from developing countries to the United States, European Union (EU) and a few other developed countries for nearly four decades will meet its demise on January 1, 2005. Is India ready to capture a much larger share of exports to these markets? Clothing production, which involves cutting fabric into different pieces, grouping them by different parts and sewing them into complete garments is one of the most unskilled-labour-intensive activities.

Few proponents of reforms had thought that in a controversy between the Planning Commission deputy chairman Montek Singh Ahluwalia who symbolises pro-market reforms and the Left that abhors them, they could side with the latter. Yet, sadly, that is where some of us find ourselves in the controversy over the appointment of foreigners and employees of multilateral institutions to the consultative groups of the Planning Commission.Few proponents of reforms had thought that in a controversy between the Planning Commission deputy chairman Montek Singh Ahluwalia who symbolises pro-market reforms and the Left that abhors them, they could side with the latter. Read full article Few proponents of reforms had thought that in a controversy between the Planning Commission deputy chairman Montek Singh Ahluwalia who symbolises pro-market reforms and the Left that abhors them, they could side with the latter. Yet, sadly, that is where some of us find ourselves in the controversy over the appointment of foreigners and employees of multilateral institutions to the consultative groups of the Planning Commission. Admirers of Mr Ahluwalia, among whom I count myself, are acutely aware of…

Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires that the revenue deficit be eliminated entirely and fiscal deficit be reduced to 3% of the GDP by 2008-09. The Act also requires that each year the revenue deficit be reduced by 0.5% of the GDP and fiscal deficit by 0.3% of the GDP until the final 2008-09 target is reached. How can this be achieved? The recent report of the Kelkar taskforce offers a roadmap. Dr Vijay Kelkar, one of India’s finest economists to serve the government of India, completes his two-year term as adviser to the finance minister this month. During this brief stint, he has provided the intellectual leadership that is rare in policy making. Few observers can forget the intense debate he launched through the comprehensive draft reports on direct and indirect tax reforms soon after he took his position at the invitation of the former finance minister Jaswant Singh. That debate set a new standard for giving the common man a voice in the policymaking. Having closely observed the deployment of the Gramm-Rudman-Hollings Act to bridge…

The Union commerce and industry minister, Mr Kamal Nath, scored an important victory in Geneva last month. must now build on his success by further reforming India’s trade regime. The National Foreign Trade Policy, due on 31 August, offers an excellent opportunity to accomplish this objective. The policy must pay particular attention to two issues — export subsidies and anti-dumping.The Union commerce and industry minister, Mr Kamal Nath, scored an important victory in Geneva last month. To his credit, while he engaged in tough talk and successfully extracted the concessions he sought, he did not shy away from making the necessary concessions of his own. Abandoning India’s original, self-defeating stance that it will not accept any reduction in its trade barriers in agriculture, he agreed to place agricultural barriers on the negotiating table in return for similar offers by his counterparts. That led to a happy ending for all — except a handful of obstructionist NGOs which tried until the end of the negotiations to provoke developing countries into blocking the deal. Kamal Nath must now build on his success…

The view that the reforms since 1991 — whether implemented by the Congress, United Front or NDA — neglected the poor, agriculture and education has gained near universal currency inside the UPA government. Even the reformists within the government have publicly complained that the policies pursued during the 1990s lacked the human face. This ‘demonisation’ of reforms not only distorts facts, it also endangers growth that is essential for poverty alleviation.The view that the reforms since 1991 — whether implemented by the Congress, United Front or NDA — neglected the poor, agriculture and education has gained near universal currency inside the UPA government. Even the reformists within the government have publicly complained that the policies pursued during the 1990s lacked the human face. This ‘demonisation’ of reforms not only distorts facts, it also endangers growth that is essential for poverty alleviation. The claims that the reforms short-changed the poor are pure nonsense. During the first three decades of development ending in the early 1980s, the proportion of the population living below the poverty line remained stubbornly unchanged. Because the total…