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Prudent prescription: on MSME sector

-The Hindu An RBI panel’s suggestions on the MSME sector cut to the heart of crucial issues The micro, small and medium enterprises (MSME) sector in India is not only a key engine of growth, contributing more than 28% of the GDP and about 45% to manufacturing output. It is also a true reflection of economics where people really matter. Providing employment to about 111 million people, the sector’s health is crucial...

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Are farm loan waivers a political gimmick? -Vikas Dhoot

-The Hindu Several interventions are needed on the demand and supply side to alleviate farm distress Loan waivers remain the preferred solution for governments to tackle farm distress. S. Mahendra Dev and M. Govinda Rao talk about the inability of governments to think of long-term solutions to tackle farm distress, in a discussion moderated by Vikas Dhoot. Edited excerpts: * Despite farm productivity rising, severe distress in the sector is a concern. How...

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Food inflation falls to lowest level since 1991 -Surojit Gupta

-The Times of India Average food prices in 2018-19 were almost the same as they were in 2017-18—a phenomenon not seen for at least 27 years. An analysis by credit rating agency Crisil shows food inflation measured by the consumer price index rose only 0.1% in 2018-19. The last time annual food inflation had fallen below 1% was in 1999-2000. Economists attribute low food prices to a string of factors including bumper...

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Rural distress is real: Negative monthly growth of real wage rates witnessed in rural areas for 9 consecutive months, starting from November 2017

  Growth in rural wages not only indicates economic prosperity of the masses, it is also considered important so as to generate effective demand for goods and services, which is produced by various sectors of the economy. When money becomes available in the hands of rural workers due to government spending on programmes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), it generates demand for commodities. The production of commodities...

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Exercise in manipulation -CP Chandrasekhar

-Frontline.in The political economy of the Modi regime was characterised by a redistribution of income in favour of a few and a worsened performance in job creation, welfare and alleviating deprivation. AT the end of its five-year term, the National Democratic Alliance (NDA) government’s claim that the Indian economy has experienced rapid growth during its tenure sounds shallow. The gross domestic product (GDP) numbers, many observers argue, are wrong and possibly fabricated....

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