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Rs 150,000 crore plus: the govt stimulus for rural areas post lockdown -Harish Damodaran

-The Indian Express That’s the actual liquidity pumped into rural areas by government post lockdown – through grain procurement, PM-Kisan and MGNREGA wages. There are many parallels one can draw between the novel coronavirus-induced lockdown (gharbandi) and demonetisation (notebandi), in terms of their impact on India’s farm economy. Both resulted in the same thing – demand destruction – albeit through different routes. Notebandi caused a haemorrhaging of liquidity from the predominantly cash-based farm...

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Can India decouple itself from Chinese manufacturing? -Ananth Krishnan

-The Hindu India faces challenges linked to infrastructure and skill sets; and its policies are unpredictable The border clashes with China and the COVID-19 pandemic have reignited questions about India’s dependence on Chinese manufacturing. India’s imports from China in 2019-2020 reached $65 billion, out of $81 billion two-way trade. Is the pandemic, as Union Minister Nitin Gadkari said last month, a “blessing in disguise” for Indian manufacturing? Will companies be able to...

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The long wait of Indian farmers for a better remuneration deal -Himanshu

-Livemint.com The ongoing reforms won’t help if they remain deprived of market access and suffer low demand Earlier this week, as part of the package for Aatmanirbhar Bharat, the Cabinet approved the proposals for agricultural marketing reforms announced in May by finance minister Nirmala Sitharaman. The government has approved the The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, along with amendments to the Essential Commodities Act. It has also...

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Problems farmers face are rooted in structural constraints, require regulatory intervention -Mekhala Krishnamurthy

-The Indian Express We must recognise and strengthen the diversity, dynamism, enterprise, and resilience of India’s agricultural markets. Last week, Finance Minister Nirmala Sitharaman signalled the Union government’s intention to enact a new central law that would override existing state regulations that restrict the farmer from legally selling to anyone other than a buyer licensed by the local Agricultural Produce Marketing Committee (APMC). The decision to push for a central law comes...

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The Modi Sarkar’s Project for India’s Informal Economy -Barbara Harriss-White

-TheWire.in From demonetisation to GST and now the lockdown, the government's policies towards the 'unorganised sector' has spelt nothing but rack and ruin. What has the BJP-led government of Narendra Modi done since 2014 that does not suggest it wishes to destroy the informal economy, also known as the unorganised sector? While the ‘unorganised’ informal economy now accounts for roughly half of India’s GDP – and is shrinking relative to the share of...

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