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Should the government loosen its purse strings? -Prashanth Perumal

-The Hindu As inflation is driven by supply-side factors, tax policy can be used to cushion its impact With the Union Budget 10 days away, many economic observers are now focused on what support the Centre can offer the economy, which is still struggling to recover from the pandemic. Some analysts believe that the government must keep its spending in check to prevent price rise from getting out of control. Retail inflation...

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The Poverty of Economic Conservatism -Prabhat Patnaik

-NetworkIdeas.org In terms of economic policy, the Modi government must be perhaps the most conservative in the world. During the entire period of the pandemic when millions of people lost their incomes and livelihood support, most governments around the world provided universal cash transfers to the people, but not the Modi government. True, many other third world countries too did not provide such universal cash transfers, but their hands were tied;...

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Recent reports predict gloomy days ahead for the overall economy

Most reports and studies by official agencies, international think tanks and private entities indicate the cataclysmic impact of the coronavirus pandemic on the economy and society. They anticipate that lockdowns imposed by various countries across the globe to reduce the exponential diffusion of COVID-19 (i.e. for flattening the curve by social distancing and quarantines) would adversely affect economic growth and disrupt supply chains in most sectors, on top of causing...

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Indian agriculture is under an invisible emergency -Devinder Sharma

-Down to Earth At a time when farmers strive to get the right price for crops, more money in their hands can help reignite the country's economy In 2019, three weeks after the kharif harvesting season began, reports emerged that farmers are selling their produce at a price way below the minimum support price (MSP) announced by the government. Except for a few crops like paddy and maize, market prices for most...

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Dr. Surjit S Bhalla, economist and Executive Director for India on the board of International Monetary Fund (IMF), interviewed by Richa Mishra (The Hindu Business Line)

-The Hindu Business Line “Join the Regional Comprehensive Economic Partnership (RCEP), but do not ignore your internal market and demand. Ninety per cent of our bad export story is domestic challenges, 10 per cent is external environment or external policy,” says Economist Surjit S Bhalla. Seventy-one-year old Bhalla has a tough task ahead — to make New Delhi’s voice louder at the international forums as he is set to take charge...

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