The country’s economic growth is expected to remain strong despite sluggishness in the manufacturing sector as a rebound in agricultural output is expected to support overall growth. Growth in the key farm sector, which accounts for nearly 17% of the nation’s GDP, has been a concern for policymakers for the past few quarters. But, healthy monsoon has raised expectations of strong farm output during July-September 2010. In addition, the arrival of...

As the common man continues to reel under the spiraling rise in prices of essential commodities especially key food items and vegetables the forever-rising food inflation is posing a serious challenge to policy makers. Though top government officials, including the Finance Minister and the Chairman of the Planning Commission have repeatedly assured that the food prices will soon stop rising, in reality it has gone the other way.   The rising spree...

Chief economic advisor to the finance ministry Kaushik Basu says the government should step in and acquire land for development projects to protect the interests of farmers. He also explains why the government cannot tackle food inflation by distributing free foodgrain among the poor. Excerpts from interview with ET: A large number of land-intensive project have run into opposition. Could it actually undermine our infrastructure thrust and growth? There is...

Driven by spiralling prices of essential items, inflation surged into double digits at 10.16 per cent in May, the highest in the last 19 months, adding to the woes of the common man. Soaring inflation, according to analysts, may prompt the Reserve Bank to tighten liquidity at its quarterly monetary policy review scheduled next month. The essential items which have become expensive, directly hitting the pocket of the common man, include pulses,...

Referring to China in 1947, Nehru declared, “A new star has risen in the eastern horizon,” and some years later predicted, “If you peer into the future, the obvious fourth country in the world is India.” One of the countries he had in mind has disappeared, and he did not imagine that the emergence of India and China on the global stage would lead to mutual friction. The Chinese are...