Media-corporate links are structural. But journalists, certainly entrenched ones, can choose whether they wish to be stenographers or not. It was gratifying to have the head of India's most reputed business house confirm the existence of crony capitalism in the country. True, others have believed this for 20 years but it carries more weight when Ratan Tata says so. As he put it in a television interview with admirable candour: “Yes,...

Agriculture minister Sharad Pawar today said the government should take note of Ratan Tata’s statement that India risked turning into a “banana republic” and cautioned against the excessive use of the CBI. Pawar’s statement came in the middle of a CBI crackdown on an alleged bribes-for-loans scandal involving several top financial officials and real estate players in Maharashtra. Another real estate project, which was once associated with Pawar’s relatives, has been...

The country’s economic growth is expected to remain strong despite sluggishness in the manufacturing sector as a rebound in agricultural output is expected to support overall growth. Growth in the key farm sector, which accounts for nearly 17% of the nation’s GDP, has been a concern for policymakers for the past few quarters. But, healthy monsoon has raised expectations of strong farm output during July-September 2010. In addition, the arrival of...

Yaga Venugopal Reddy , former Reserve Bank of India governor credited with saving the nation’s financial system from the 2008 meltdown, has said what many finance experts believed, but did not have the courage to admit publicly: microfinance is India’s subprime. “Ultimately, it’s something like subprime lending,” Mr Reddy told ET in an interview ahead of his book release. “The same incentives are operating here... it was securitisation and derivatives that...

The microfinance bubble has burst. The AP government ordinance, the AP oppositionfs campaign asking borrowers not to repay and the sheer public hostility towards MFIs . all these have put the brakes on MFI activities for now. We need to rethink the role of MFIs in the rural economy . In order to do so, we must first grasp some of the myths on which the MFI sector has rested...