The recent Cabinet nod to the National Food Security Bill triggered a flurry of criticism in the mainstream media, focusing mainly on the financial implications. The cost of the Bill obviously needs careful scrutiny and public debate, but it’s a little sad to see so much concern with the cost, and so little interest in what the Bill can do to improve people’s lives. The barrage of attacks was predictable —...

In an attempt to bolster its aam aadmi image, the government is setting up the Aajeevika Development and Financial Corporation, a financial institution to ensure easily available funding for self-help groups under the National Rural Livelihood Mission. Problems in accessing credit for families below poverty line have been a major hurdle for the livelihood mission. The rural development ministry is in the process of inter-ministerial consultations on the proposed financial...

Given a positive regulatory environment, banks and other financial intermediaries will certainly be interested in using the smart card opportunity. Dr Arvind Virmani, with a Ph.D. from Harvard and 30 years of professional experience, is one of the most valued economists in the Government. Before he retired as Chief Economic Advisor in 2009, he had served in the Finance Ministry and the Planning Commission. A researcher par excellence, his research papers...

Pranab Mukherjee, India’s finance minister, put the rural economy at the heart of a national budget on Monday, saying ridding the farm sector of crippling supply bottlenecks would be his “focus” in the coming fiscal year.A market-neutral budget supporting agriculture, welfare schemes and the extension of banking services to more people was designed to dispel any sense that the Congress party-led government was in drift after a series of high...

Organized retail of packed food and raw food reduces prices of food for urban citizens and pays farmers a better price for the agricultural produce. It eliminates middle men and decision making at every other level. This is not rocket science. However, politicians refuse to do away with the WWII public distribution system in order to retain power at the district level. Well, for one thing, the format of the...