-Tehelka Edited Excerpts From An Interview NOTED ECONOMIST and Columbia University Professor Jagdish Bhagwati’s pro-free trade stance is well-known. A friend of the prime minister and his batch mate from Cambridge University, Professor Bhagwati feels the UPA’s departure from the stagnation of the past few years is a welcome change, and lauds the decision to allow FDI in multi-brand retail. In an interview to TEHELKA Business Editor Shaili Chopra, Bhagwati says more...

-Reuters RANCHHODPURA, India (Reuters) - Working out of a tiny rented room furnished with a wooden table, small biometric authentication machine and shelf stacked with passbooks, Ganesh Dangi is a one-man bank for a village of 650 people in northwestern Rajasthan. A business correspondent, or local representative, for State Bank of Bikaner and Jaipur (SBBJ) in Ranchhodpura village, 40 km (25 miles) east of Udaipur, Dangi is racing to sign up villagers...

-The Telegraph The Centre is poised to launch a pilot project to study the delivery of food subsidy through direct cash transfer, a proposed system that civil society groups feel will end up inconveniencing the poor beneficiaries. The food and consumer affairs ministry will start the pilot scheme in the six Union territories next month, a top government source told The Telegraph. Now, households buy food grains at subsidised rates (called the “central...

-The Business Standard Reetika Khera Professor, Indian Institute of Technology, Delhi* “Aadhaar is being made de facto compulsory for welfare schemes. With two-thirds without Aadhaar, they are bound to be denied entitlements” There are three components of the government’s direct benefit transfer scheme — computerisation, extending banking services and linking the benefits with Aadhaar. The real game-changers are the first two, whereas Aadhaar-enabled transfers carry the risk of excluding current beneficiaries. The Central government has...

The total expenditure on central schemes for the poor and on the major subsidies exceeds the states' share of central taxes. These schemes are chronic bad performers due to a culture of immunity in public administration and weakened local governments. Arguing that the poor should be trusted to use these resources better than the state, a radical redirection with substantial direct transfers to individuals and complementary decentralisation to local governments...