V1C10: IS INDIA’S GDP GROWTH RATE OVERSTATED? NO!

Investment catalyses the economy into a virtuous cycle: The Economic Survey of 2018-19 laid out the role of investment, especially private investment, in driving demand, creating capacity, increasing labour productivity, introducing new technology, allowing creative destruction, and generating employment. Recent initiatives taken to foster investment in the economy: Relaxing FDI norms Cutting corporate tax rates […]

V1C9: PRIVATIZATION AND WEALTH CREATION

As per Margaret Thatcher – “Free enterprise has enabled the creative and the acquisitive urges of man to be given expression in a way which benefits all members of society. Let free enterprise fight back now, not for itself, but for all those who believe in freedom.” In November 2019, India launched its biggest privatization […]

V1C11: THALINOMICS: THE ECONOMICS OF A PLATE OF FOOD IN INDIA

Thalinomics is the economics of a plate of food in India. It is an attempt to quantify what a common person pays for a Thali across India. Has a Thali become more or less affordable? Has the price of a Thali increased or decreased? Is the inflation the same for a vegetarian Thali as for […]

V1C8: FINANCIAL FRAGILITY IN THE NBFC SECTOR

NBFC: Financial institutions that offer various banking services but do not have a banking license. They are primarily responsible for making investments but do not have the authority to accept deposits. NBFCs cannot form part of the payment and settlement system. This means that cannot issue cheques drawn on itself. The deposit insurance facility of […]

V1C7: GOLDEN JUBILEE OF BANK NATIONALISATION TAKING STOCK

2019 — 50th anniversary of bank nationalization. Since 1969, India has grown significantly to become the 5th largest economy in the world. Yet, India’s banking sector is disproportionately under-developed given the size of its economy. For instance, India has only one bank in the global top 100 – same as countries that are a fraction […]

V1C6: TARGETING EASE OF DOING BUSINESS IN INDIA

Ease of doing business is key to entrepreneurship, innovation and wealth creation. India has risen significantly in the World Bank’s Doing Business rankings in recent years, but there are categories where it lags behind – Starting a Business, Registering Property, Paying Taxes and Enforcing Contracts. For example, registering property in Delhi and Mumbai takes 49 […]

V1C5: CREATING JOBS AND GROWTH BY SPECIALIZING TO EXPORTS IN NETWORK PRODUCTS

Survey says India has unprecedented opportunity to chart a China-like, labour-intensive, export trajectory. By integrating “Assemble in India for the world” into Make in India, India can: Raise its export market share to about 3.5% by 2025 and 6% by 2030. Create 4 crore well-paid jobs by 2025 and 8 crores by 2030. The survey […]

V1C4: UNDERMINING MARKETS: WHEN GOVERNMENT INTERVENTION HURTS MORE THAN IT HELPS

The Economic Survey 2020 gives an unapologetic defence of wealth creation. Many Govt measures — well intended — but over years become counter productive — pharmaceuticals and agriculture Undermined the ability of the markets to support wealth creation Outcomes opposite to those intended. Economic freedom enhances wealth creation — by efficient allocation of entrepreneurial resources […]

V1C3: PRO-BUSINESS VERSUS PRO-CRONY

Cronyism: It is the practice of partiality in awarding jobs and other advantages to friends or trusted colleagues, especially in politics and between politicians and supportive organizations. Dutch Disease: It is an economic term for negative consequences. It is primarily associated with the new discovery or exploitation of a valuable natural resource and the unexpected […]

V1C2: ENTREPRENEURSHIP AND WEALTH CREATION AT THE GRASSROOTS

The “Startup India” campaign of the Government of India recognizes entrepreneurship as an increasingly important strategy to fuel productivity growth and wealth creation in India. Chapter Focus: Content and drivers of entrepreneurial activity at the bottom of the administrative pyramid – over 500 districts in India. India ranks third in the number of new firms […]