Global business abhors uncertainty. The ministerial-level corruption in UPA-II has slowed FDI and FII inflows. The stock market, despite double-digit corporate profit and 8.6% GDP growth, reflects the anxiety of Indian and foreign investors. To take India's growth story forward in the 20th year of economic reforms, political reforms must catch up. Misgovernance won't do in a globalised, interconnected world. Two kinds of political corruption blight India: episodical and ongoing. Episodical...

Tamil Nadu offers maximum economic freedom and Bihar the least among 20 of India's big states, according to a study released on Tuesday. The Economic Freedom of the States in India 2011 ranked the states based on the extent of wealth, administrative and social parameters in 2009. The USbased Cato Institute published the rankings in association with Indicus Analytics and the Friedrich Naumann Foundation. Both the states retained their positions...

Activists hope that a popular agitation against the setting up of a factory to manufacture asbestos products in the eastern Bihar state will result in a nationwide ban on the large-scale import into this country of the deadly mineral fibre. Following six months of agitation against the setting up of the factory in the Chainpur-Bishunpur area of Bihar’s Muzzaffarpur district, state chief minister Nitish Kumar sought to lay blame on the...

Even though the Central Government agreed to link the wages paid under MG-NREGA to the Consumer Price Index for Agricultural Labourers (CPIAL), it shied away from paying statutory minimum wages in various states of India. Their logic for this: Lack of clarity on who will bear the extra financial burden—the Centre or the states? A letter from the Prime Minister Manmohan Singh to UPA and NAC Chairperson Sonia Gandhi dated 31...

Ratan Tata has initiated an interesting debate on the nature of India’s capitalist class. His characterization of this class as crony capitalists may not be out of place given recent evidence on a politics, media, judiciary and corporate nexus.Crony capitalism is a system in which businesses multiply their wealth not by fair rules of the market, but through their nexus with governments. Classic examples are the distribution of legal permits,...