One of the most intriguing features of India's agrarian economy in recent years is the persistence of agrarian distress in many regions, even while agricultural credit flow has risen sharply. Rising flow of credit to agriculture is normally associated with buoyancy in the farm sector. A closer look at the data on agricultural credit reveals that what is termed agricultural credit may have very little to do with agriculture, the...

The Planning Commission today decided in favour of pumping nearly Rs 14,000 crore into social and physical infrastructure building in some 35 Maoist-hit districts. The plan, formulated at the request of finance minister Pranab Mukherjee, will focus on the National Rural Employment Guarantee Programme, rural roads, health, rural electricity, universal elementary education, child nutrition and health and new residential schools called ashram schools. Later this month, the action plan will be placed...

The Union budget estimates the nominal rate of growth for the Indian economy to be 12.5 per cent during the current fiscal. While it is impossible to figure out the manner in which this number was arrived at, the government has predicted further that the inflation-adjusted real growth rate for the same year will be eight per cent. Simple arithmetic requires that the difference between the nominal and real growth...

Wheat to be sold to traders at Rs.12.50 a kg; decision on sugar deferred  The Centre will release five million tonnes of wheat from its pool in the open market to enhance availability and maintain a check on prices. The wheat, to be released in July, would be available directly from depots for traders and retail buyers at a reserved price of approximately Rs.12.54 a kg. Wheat is selling in Delhi...

While India’s new Right to Education Act seeks to bring free and compulsory education for all children, it seems to short-change them through an unrealistic vision of the private sector’s involvement. In August 2009, the Right to Education Act was passed in the Indian Parliament with no debate, by the fewer than 60 members who happened to be attending the session that day. Not that the Act was an open-and-shut...