Times of India ⁽⁹²⁾

Read full article Abstract: With nearly 150 days having passed since Prime Minister Narendra Modi entered office, we can see silhouettes of the new regime emerge. Although the economy had been at the centre of Modi’s election speeches, social goals and foreign relations have come to occupy an equally important place in his early action agenda – if not even more. At least three initiatives of his government can be potentially transformational. First and foremost, Swachh Bharat Abhiyan is easily the most ambitious step towards improved health outcomes in recent decades. Public health has been a much-neglected area and has been waiting to be tackled on a war footing. With the 150th birth anniversary of Mahatma Gandhi strategically chosen as the target date for conclusion of this campaign, there is hope that government will closely monitor progress, take timely corrective actions and sustain momentum. Second, setting aside near universal opposition from within his party, Modi has decided to complete the Aadhaar project which would give biometric identification to every Indian. Alongside he has launched the Jan Dhan Yojana that promi-ses…

Read full article Abstract: The high-profile launch of the ‘Make in India’ campaign today is a good occasion to remember the development experience of East Asian economies such as South Korea, Taiwan and Singapore in the 1960s and 1970s and China more recently. East Asian economies principally relied on growth in labour-intensive industry and accompanying expansion in jobs at ever rising wages, as the principal means of prosperity for the bottom half of the population. India focused more directly on social protection for workers through legislation, foregoing good jobs and to a great extent growth as well. In the East Asian economies sustained rapid growth of labour-intensive manufacture created well paid jobs for the low skilled and paved the way for the migration of vast numbers of agricultural workers into manufac-turing. As a concrete example, South Korea grew at an average rate exceeding 8% between 1965 and 1985. During the same years, the employment share of agriculture fell from 59% to 25%. Industry and services absorbed the workers so released. Alongside, average real wage rose more than 8% per year.

Read full article Abstract: Complexity of World Trade Organisation (WTO) agreements has meant that much of the commentary on the recent decision by the Narendra Modi government against ratifying the Bali package has been marred by confusion. Officials from most countries and commentators from around the world, including many from India, have nearly uniformly criticised the government for blocking a deal that had taken 12 long years to negotiate. The government and its handful of defenders have argued the contrary, but mostly unconvincingly. Who is right? Contrary to the vast majority of analysts who have uncritically accepted the usual developed country accusation that India has played its conventional role of an obstructionist and a spoiler in the negotiations, the answer is more nuanced and equivocal. The problem India confronts is that the food procurement component of its food security programme violates its WTO obligations. Contrary to common impression the public distribution system (PDS) component, which provides foodgrain at subsidised prices to households, is WTO legal and is not an issue. Under its WTO obligations, the value of subsidy India provides…

Read full article Abstract: The presidential address to Parliament on June 9, 2014 had focussed nearly exclusively on projects and schemes, eschewing policy. Therefore, many had eagerly awaited the budget speech for a policy vision of the new government. Unfortunately, it too left observers guessing on whether the government would tackle tough reforms or rely principally on better implementation. Had this been the budget of the United Progressive Alliance (UPA), arguably it could have passed as spelling directional shift. But coming as it does from a government that has just scored an unprecedented victory on the platform of growth, development and jobs, it feels incremental. Such is the ambiguity of the message that the outgoing finance minister P Chidambaram has gone on to claim, unjustifiably in my view, that this is his interim budget without the humour and inspirational quotes. The budget surely has features that sharply distinguish it from the Chidambaram budget. It offers steps to minimise future tax disputes and surprises. It contains credible proposals to accelerate building of infrastructure. It promises to develop entrepreneur-friendly legal bankruptcy framework…

Read full article Abstract: The Planning Commission is being revamped. This should have happened at least 16 years ago when the first NDA government came into office in 1998. By that time the 1991 reforms were beginning to transform the nature of the Indian economy from being closed and centrally planned to an open and private sector-led economy. But better late than never. Prime Minister Narendra Modi announced this bold reform in his maiden Independence Day speech. He is now actively following up on this announcement and met selected experts yesterday. I hope the new institution will be a high-powered and knowledge-driven body that will win the respect of its peers by the value addition it brings to addressing India’s myriad challenges. Modi also used his Red Fort address to hold up a rather unflattering mirror to us Indians instead of trotting out a laundry list of new schemes. This was widely appreciated. He dwelt on aspects such as how we Indians don’t respect our women; lack basic civic sense and keep our cities and villages filthy; focus unremittingly on…