The single most important aspect of the Indian economy is its very large black economy. In fact, it impacts not just the economic aspect of society but also its social and political facets. All the macroeconomic variables like, growth rate of the economy, inflation and fiscal policies are affected by the black economy. The microeconomic variables like education, health, drinking[Read More…]

  The government was expected to present a big-bang Budget since it has a massive majority in Parliament. It was hoped that the Budget would help take the economy out of its current troubles. Soon after returning to power the government and the PM have repeatedly talked of the Indian GDP reaching $ 5 trillion in the next five years.[Read More…]

An Economic Survey is a document that surveys the economy in the financial year just past. So, it lists the issues confronting the economy and gives prescriptions for how to tackle these problems. Usually the solutions to the problems are presented in the Budget since resolution of problems requires allocation of resources which can only be done in a Budget.[Read More…]

The messaging around national security and last-mile schemes allowed Modi to present himself as the best short-term solution, regardless of his long-term vision. The Bharatiya Janata Party (BJP) – and more than that, Narendra Modi – has come back with a larger mandate than what it was given by India’s voters in 2014. At one level, this is remarkable given the economic[Read More…]

  Everyone knew India’s organised sector contained a large number of shell companies. We should have worked out its impact and whether a blowing up factor was required before launching the new GDP series. Another controversy about India’s gross domestic product (GDP) data has broken out, with a National Sample Survey Office (NSSO) report casting doubt on the quality of[Read More…]

If one does not show that the “desirable is feasible,” chances are that the promises will remain on paper, as in the past. Written by General elections are the time for the political parties to vie with each other to produce more innovative and inclusive manifestos than their rivals. There is something for everyone, especially for the marginalised sections —[Read More…]

The note-ban was a foolish attempt to tackle the black economy and a policy-induced self goal by the Narendra Modi government. The response to its fall-out is more authoritarianism. Demonetisation is like a bad dream etched in our memories. Weddings were postponed and medical treatment was curtailed for lack of money. Long queues formed outside banks. Small businesses closed due[Read More…]

India’s gross domestic product (GDP) has grown at a robust 8.2% in the first quarter of the current financial year, according to recently released official data. This is the highest in the last two years which has seen two shocks to the economy in the form of demonetisation and GST. The spurt in growth is due to a sharp increase in the[Read More…]

The new data on GDP have raised a political storm, with the back series for GDP growth since 1993-94 becoming available. Its importance lies in the fact that in 2015, a new series was announced which showed India’s GDP growing faster than the earlier series had shown. This was politically advantageous to the National Democratic Alliance (NDA) government which came to[Read More…]