The earlier draft covered only non-NBFC MFIs incorporated as trusts and non-governmental organizations that constitute a very small part of the total industry The proposed microfinance Bill for governing India’s Rs. 22,000 crore microlending industry is set to give more teeth to the Reserve Bank of India (RBI) to regulate larger microfinance institutions (MFIs). This will be done by removing such entities from the purview of laws enacted by state governments...

Budget 2011-12 and the Scheduled Castes and Scheduled Tribes. THREE decades ago, in the early years of the Special Component Plan (SCP) for Scheduled Castes – very recently renamed inappropriately as Scheduled Castes Sub-Plan (SCSP) – Indira Gandhi on her return as Prime Minister wrote two historical D.O. letters dated March 12, 1980, one to Central Ministers and the other to State Chief Ministers, regarding the SCP in the Central...

This book discusses a new poverty agenda for Asia and the role of social policies in economic transformation and reducing poverty. The poverty-reduction agenda is well known. So is the debate over poverty. No one disputes the fact that poverty of income (or expenditure, as countries such as India do not collect household data on income) is an imperfect measure of poverty, as there are non-income dimensions, too. Consequently, we...

Would you rather buy a necessity like kerosene or food grains at a subsidy or receive an equivalent amount of cash instead? Would you prefer that the government decides your consumption pattern rather than figuring out on your own how to spend your income? One of the “big ticket” reform items in the budget was the announcement that subsidies on kerosene, fertilizers and Liquefied Petroleum Gas and delivery through the Public...

The policy is to promote specific high-value segments within agriculture, where corporate houses have major profit interests. A COMMON compliment that Pranab Mukherjee's Union Budget for 2011-12 received from the media was its proclaimed “friendliness” to agriculture and rural areas. It was not just the media; members of India Inc. welcomed the Budget as “focussed” on agriculture. However, a close look at the Budget estimates reveals a different picture. Public...