Is Bihar on steroids, boosted by an excessive stimulus of dramatically higher public outlays than ever in the past? Like all stimulus, does it also bear the danger of slumping back when it is withdrawn? Is the widely acclaimed growth turnaround a durable and sustainable one? These are among the many issues, which are currently being debated. But first the facts. Bihar is the best turnaround story that the country has seen...

The New Year began with very good news about the Indian economy. During the last five years, 2004 to 2009, India’s most backward states have shown remarkable growth. Bihar, which grew at 4.5 per cent a year between 2001 and 2005, showed a growth rate of 11.3 per cent between 2005 and 2009. Similarly, Odisha increased its growth performance from 4.94 to 8.74 per cent between these two periods; Jharkhand...

THIRUVANANTHAPURAM: Food and Civil Supplies Minister C. Divakaran has said that Rs.56 crore has been sanctioned to Kerala State Civil Supplies Corporation (Supplyco) as part of the market intervention programmes initiated by the State government to control the price line. In an official statement here, Mr. Divakaran said the amount had been sanctioned as a follow-up to the decision taken at the December 8 meeting of the Cabinet sub-committee. The amount...

The collapse of the Dubai dream is not without any implications; it may be an indication that the travails of finance capitalism are not over. GLOBAL capitalism is in a phase in which it must deal with the fruits of the overextension during the previous boom, and there is no doubt that this is going to be painful. The financial crisis in the United States and some other developed countries...

We Indians implicitly believe in India’s great past. Recently, that past has been given a statistical underpinning by Angus Maddison. To celebrate the beginning of the 21st century, Maddison wrote a book called The World Economy: A Millennial Perspective. There he says that India was the world’s largest economy in the first millennium AD. It produced one-third of the world’s income in the first century, and 29 per cent in...