-The Indian Express   Reserve Bank of India Governor D Subbarao on Tuesday cautioned that policies — the significant increase in rural wages triggered by the MGNREGS and inflationary implications of the proposed Food Security Bill — aimed at inclusive growth can stoke inflationary pressures at any rate in the short-term. “The need for making growth inclusive is incontestable, but it is important to recognise that policies aimed at inclusion can stoke inflationary...

Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest...

Planning Commission deputy chairman Montek Singh Ahluwalia did a U-turn on the highly controversial Rs 32 per day poverty line, informing Prime Minister and plan panel chairman Manmohan Singh that caps on number of beneficiaries of schemes with central subsidies will be done away with. The about-turn comes after Ahluwalia's earlier letter to attorney general Goolam E Vahanvati in October defending the "artificial" cap Planning Commission imposes on beneficiaries of various...

The climate change negotiations are deadlocked because of a basic difference of approach. Developing countries are calling for enhanced implementation of existing agreements, while developed countries are insisting on a new agreement that would shift a large share of their obligations to the shoulders of developing countries, particularly the ‘newly emerging economies’ like India and China. The European Union is calling for negotiations on a new agreement to replace the...

Two months ago, Cabinet approved a draft law that seeks to create a better legislative environment to attract investments in mining and ease land acquisition through higher compensation to people displaced by projects. This show of goodwill could help the government win some hearts in troubled landscapes of Orissa and Karnataka.  But mining companies are not entirely convinced as they have to pay higher royalties and want changes to be made...