India's banking industry has thrown its support behind microfinance lenders after weeks of upheaval and confusion. Major banks like the State Bank of India, Standard Chartered and Citi have all agreed to continue lending to microfinance firms. The multi-billion dollar industry was on the brink of a mass default. The banks' support has hung in the balance since lenders became embroiled in controversy in the southern state of Andhra Pradesh. About four weeks ago,...

Microfinance is an effective tool for financial inclusion. Here are some elements of the recently embattled sector The recent controversy surrounding the microfinance sector has entirely eclipsed the fact that it is the first effort in India to have delivered financial services to remote corners of the country in a self-sustaining manner. The stakes are high for India’s poor, and we have to pave the way for orderly growth in the...

A three-member team of experts, headed by economist Bibek Debroy, began its job of mapping a growth path of politically unstable Jharkhand today by meeting chief minister Arjun Munda and discussing the contours of a state development report. Working on a three-month time frame, Debroy, who was approached by Munda to take up the assignment, said his meeting with the chief minister was productive. “He has given us some thoughts to work...

The first tentative moves towards the formation of a representative body of farmers — the National Alliance of Farmers' Associations — were made by the Bharatiya Janata Party at a meeting here over the week-end. The BJP said it was of the view that efforts must be made to set up a farmers' organisation akin to the Confederation of Indian industry and the Federation of Indian Chambers of Commerce and industry...

India needs to introduce competition in the public distribution system (PDS) for its ambitious food-for- all programme to work, according to country's chief economic advisor Kaushik Basu. In an exclusive interview with NDTV, Basu outlines that if the government tries to provide food security through the present system, it will need to procure 140 million tonne of foodgrain. “The agriculture ministry has given some estimates that 62 million is what you...