The Indian economy should recover from the recession caused by the global meltdown. India’s exposure to the world economy is quite limited. It is mainly through the exports market and partly through foreign investment flows either as equity or debt capital that financed private investment. The extent of the dependence, however, is quite low. The recession in the exports market affects only few sectors, such as textile and labour-intensive manufactures...

More than the return of the United Progressive Alliance (UPA) government to power, the aam admi will remember the year 2009 for the back-breaking mehngai and the inability of the government to make dal-roti, sabzi and chini affordable for the masses. The unprecedented rise in the price of essential commodities, particularly pulses, sugar, milk and vegetables turned the year bitter for the aam admi. What was irksome for the people was...

In Amravati villages, dropout is pronounced; alcohol is another problem The wooden door of Surekha Rathod’s house is held together by small strips of coloured ribbons. This is no decoration. Some days ago, Surekha’s drunken father, who was locked out, tried to break in with an axe and sliced off the door. “I had a narrow escape, even though I was inside the house,” says her mother, Sunanda. “My husband...

“States should ensure effective public distribution system”  Fiscal deficit at 6.8 per cent of GDP a challenge Dip in exports due to low demand following economic downturn in foreign markets Union Finance Minister Pranab Mukherjee on Thursday said increasing food grains productivity, ensuring effective distribution of subsidised essentials to vulnerable groups and allowing duty-free import were some of the steps taken to control the spiralling prices of essential commodities. Speaking at the 109th...

Right time for policy reform The government is set to face disappointment on its expectation that the fertiliser subsidy will go down sharply this year due to a softening of international prices of fertilisers. It now appears almost certain that the total payable subsidy in 2009-10 may be around Rs 70,000 crore, against the budgetary provision of under Rs 50,000 crore. Since the government has made it clear that no additional...