Chief economic advisor to the finance ministry Kaushik Basu says the government should step in and acquire land for development projects to protect the interests of farmers. He also explains why the government cannot tackle food inflation by distributing free foodgrain among the poor. Excerpts from interview with ET: A large number of land-intensive project have run into opposition. Could it actually undermine our infrastructure thrust and growth? There is...

Sunday will mark the fifth anniversary of the landmark National Rural Employment Guarantee Act (later rechristened the Mahatma Gandhi National Rural Employment Guarantee Act, or MGNREGA). At a time when the country is debating the contours of similar landmark legislation for food security (the National Food Security Act), it is time to evaluate the working of MGNREGA, initially implemented in 200 of the country’s poorest districts and expanded to all...

Sunday will mark the fifth anniversary of the landmark National Rural Employment Guarantee Act (later rechristened the Mahatma Gandhi National Rural Employment Guarantee Act, or MGNREGA). At a time when the country is debating the contours of similar landmark legislation for food security (the National Food Security Act), it is time to evaluate the working of MGNREGA, initially implemented in 200 of the country’s poorest districts and expanded to all...

The disastrous effect of the state throwing up its hands and retreating is most starkly visible in agriculture . Remember: agriculture involves 70 per cent of the country's population , generates about 56 per cent of national income, 64 per cent of total expenditure and about one third of total savings. So, any neglect translates into gigantic costs. And the central crisis in agriculture — production barely matching a depressed...

The planned National Food Security Act represents a unique opportunity to achieve gains with respect to the public distribution system. However, the current draft is a non-starter. When I first visited Surguja district in Chhattisgarh nearly 10 years ago, it was one of those areas where the Public Distribution System (PDS) was virtually non-functional. I felt constrained to write, at that time, that “the whole system looks like it has been...