Rahul Gandhi, the general secretary of India’s Congress party, often says that there exist “two Indias” — one of the rich, and one of the poor. Those two Indias were in evidence a couple of weeks ago, when closely timed events on opposite sides of the planet brought into relief the deep divides that in many ways define this country. In Mumbai on Nov. 7, President Barack Obama told a group of...

The recently published survey of employment and unemployment in India, conducted in 300 districts across the country, shows once again that without a reform of India’s archaic labour laws, the share of salaried employed will continue to remain low. The employment-unemployment survey was conducted by the Labour Bureau of the Union Ministry of Labour and Employment. Public attention has largely focused on the unemployment number that the survey threw up....

In India, commercial banks, both public and private, are required to direct a large chunk of their net credit to designated “priority sectors” seen as having a positive impact on India’s economy, and wider society – to ensure funds flow into areas the government deems important, but might otherwise be neglected. These sectors – designated by the Reserve Bank of India – currently include broad areas of agriculture, small scale industries,...

The rural poor in Andhra Pradesh, a State showcased as a model for SHG-bank linkage, are caught in the vortex of microfinance. WITHIN a decade of their coming into operation, microfinance institutions (MFIs) have dealt a serious blow to the economy and the well-being of thousands of families in rural Andhra Pradesh. Harassment by their collection agents has allegedly driven at least 60 borrowers to death, and the number is...

India has lost nearly a half-trillion dollars in illegal financial flows out of the country, says a new study by Global Financial Integrity. India is losing nearly Rs.240 crore every 24 hours, on average, in illegal financial flows out of the country. The nation lost $213 billion (roughly Rs.9.7 lakh crore) in illegal capital flight between 1948 and 2008. However, over $125 billion (Rs.5.7 lakh crore) of that was lost in...