One of the standout features of the monetary stimulus in India has been the wide divergence between the RBI’s policy rates and the actual lending rates of banks — the latter haven’t fallen nearly as much as the RBI would have liked. On Wednesday, Governor Subbarao ticked Indian banks off for the stickiness and non-transparency in lending rates and urged them to get out of the mindset which has led...

The rural population is at present estimated at 85 crores. Ten per cent of the households are completely landless. Another 52 per cent have holdings of less than 0.2 hectare. The per capita agricultural land in the rural areas has come down to 0.12 hectare. According to the National Sample Survey, the annual income of an agricultural household from farming is less than Rs 12,000 and from all sources it...

A survey reveals that desperate times have led to illegal measures THE recession has taken its toll on morals as well as profits. PricewaterhouseCoopers (PwC), a consulting and accounting firm, has conducted a biennial survey of economic crime for the past ten years. The most recent, published on November 19th, is not only the most thorough, based on over 3,000 responses from firms in 54 countries. In many ways it is...

The widening chasm between India and Bharat is perhaps best reflected in the manner in which electricity is consumed. The neon-lights of Mumbai and Delhi beckon many with their glitter, but large swathes of territory across the country literally remain in the dark more than six decades after political independence. The government remains obsessed till today with building mega power projects — even our first Prime Minister Jawaharlal Nehru had second...

Reader responses to last week’s column on media-related malpractices during elections throw further light on this serious issue, which is now before the Press Council of India. Some of them contend that the alleged malpractices were neither new nor confined to Andhra Pradesh and Maharashtra. No less shocking than the “coverage package” of Maharashtra or the “cash transfer scheme” of Andhra Pradesh is the “power of extraction” that allegedly played...