How economically sustainable is food subsidy? The cost could even be double of what the government estimates Food deprivation and malnutrition are completely unacceptable and everything has to be done to eliminate such an evil. The prevalence of malnutrition in a country like India is in itself a cause for serious concern since malnourished children may jeopardise India’s favourable demographic dividend (as per independent estimates, close to 60 per cent of...

-The Economist   Opposition to the world’s biggest biometric identity scheme is growing FOR a country that fails to meet its most basic challenges—feeding the hungry, piping clean water, fixing roads—it seems incredible that India is rapidly building the world’s biggest, most advanced, biometric database of personal identities. Launched in 2010, under a genial ex-tycoon, Nandan Nilekani, the “unique identity” (UID) scheme is supposed to roll out trustworthy, unduplicated identity numbers based on...

The promotion of the PDS as an Aadhaar application would fundamentally alter its form and character. NO scheme of the Indian government would be transformed more fundamentally by Aadhaar than the public distribution system (PDS). The nature of this transformation appears to be taking the form of a virtual dismantling of the PDS; even if a skeletal fair price shop (FPS, or ration shop) system continues to exist, it is likely...

In planning, pursuit of profit was not seen as being in the social interest in the post-Independence years, but now profit is the sole motive. FOR two decades now the Government of India has pursued a policy of accelerated liberalisation, dismantling controls, diluting regulations and making the state a facilitator of private investment. It is not that the presence of the state has diminished during this period, but that its role...

What is government planning to do with the Public Distribution System (PDS)? The answer lies in an old adage: Give a dog bad name and hang him! The common impression is that the PDS is not working because of pilferage and hence it is taken as a foregone conclusion that it needs to be replaced with cash transfer. Two empirical studies conducted recently, one of them by noted economists Jean Dreze...