Regulation in India's microfinance sector aims to address feckless borrowing and reckless lending – but will the new restrictions entrench poverty, rather than end it? One of the many crushing burdens for India's poor bear is debt; unable to make ends meet, they turn to traditional Moneylenders. They are willing to extend credit, but at unconscionably high rates – sometimes exceeding 80%, and keeping borrowers in lifelong penury. Popular cinema and...

The Adivasi Adhikar Rashtriya Manch (AARM) has urged Union Finance Minister Pranab Mukherjee to ensure that the allocation for the Tribal Sub Plan (TSP) in this year’s budget is increased to 8.4 per cent, in keeping with the strength of the tribals in the country. They stressed that the shortfall on this account was over Rs 27,000 crores in the last two years. Members of the AARM, which works among tribal...

The countrywide share of corporate retail in food distribution tripled in the past four years when retail food prices showed the greatest increase. THE dramatic increase in food inflation over the past two years has been associated with several surprises. One major surprise has been how the top economic policymakers in the country have responded to it. The initial response was one of apparent disbelief, followed very quickly by the...

A day after being sworn in, Rural Development Minister Vilasrao Deskmukh Thursday said the Supreme Court's observation on his links with Moneylenders who harass farmers was an "isolated incident". He also said there was no link between his new portfolio and farmer suicides in Maharashtra. "One isolated incident cannot be connected with other things," Deshmukh told reporters after taking charge. The court last month had raised questions on the former Maharashtra...

A generally beleaguered microfinance industry was eagerly waiting for Yezdi Malegam for deliverance. Any conversation about the microfinance business would end with the expectation that the Malegam committee would deliver a healthy dose of oxygen to the choking microfinance industry. The report was expected to be the panacea for all that ails microfinance in India. The report, which came out on Monday, disappoints not only in its inability to meet these...