-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...
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-The Indian Express The finance ministry has come to an agreement with the department of industrial policy and promotion about what the government’s policy towards foreign direct investment in retail should look like. This means the retail FDI proposal will be placed before the cabinet soon, and hopefully will be cleared as soon as possible. Currently, only 51 per cent foreign investment is permitted, and only in stores selling a single...
More »High food price, a crisis on our plate by Brinda Jagirdar
To control inflation and ensure long-term economic growth, India needs to harness the creativity of the large number of its farmers and entrepreneurs, especially in rural areas. The latest WPI inflation data show primary articles inflation in double digit, driven mainly by food inflation which remains stubbornly high at over 9 per cent. The high food prices are the result of structural factors with shortages getting aggravated as demand continues to outstrip...
More »India needs to curb food wastage to tackle inflation: World Bank
-The Hindu Business Line Input subsidy expenses not contributing to boost productivity The World Bank has said that South Asia's foodgrain stock management, especially in India, needs to improve to tackle inflation. In its focus on food inflation in South Asia, the bank said that high stocks have led to high wastage due to inadequate storage capacity and technology. According to World Bank's estimates, the Food Corporation of India lost 10-16 million tonnes...
More »Decadal journeys: debt and despair spur urban growth by P Sainath
The re-classification of villages and towns, and the changes this brings to the nation's rural-urban profile, happens every decade. Yet only Census 2011 shows us a huge turnaround, with urban India adding more people (91 million) than rural India (90.6 million) for the first time in 90 years. Clearly, something huge has happened in the last 10 years that drives those numbers. And that is: huge, uncharted migrations of people...
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