“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...

The Union finance ministry’s mid-year fiscal Review, tabled in Parliament last week, notes very correctly that the “current period represents a crossroads for the Indian economy”. Having weathered the global economic downturn, the Indian economy has performed better than expected. Hence, the Review’s upbeat tone is understandable. Yet, the Review offers an honest account of the challenges ahead, hence the view that India is at a crossroads. Much of the...

The recession was less calamitous than many feared. Its aftermath will be more dangerous than many expect IT HAS become known as the “Great Recession”, the year in which the global economy suffered its deepest slump since the second world war. But an equally apt name would be the “Great Stabilisation”. For 2009 was extraordinary not just for how output fell, but for how a catastrophe was averted. Twelve months ago,...

India's economy grew at a faster-than-expected rate of 7.9% in the three months to September, compared to the same period last year. The growth was helped by government stimulus spending. A boost in manufacturing and services helped the country expand at the fastest pace for 18 months. Some analysts said this could give the central bank room to raise interest rates as early as December to combat rising inflation. "This data...

AMIT KUMAR must be one of the few bankers in the world turning away depositors. The manager of a village bank in the Indian state of Rajasthan, he was reluctant to take a cheque for 1m rupees ($21,200) from the elected head of the village, or sarpanch. The cheque was meant to pay hundreds of villagers for their work under India’s National Rural Employment Guarantee Act (NREGA), which guarantees 100...