The United Nations agency entrusted with accelerating sustainable industrial development in poorer states today pledged to help the world’s 49 least developed countries (LDCs), 33 of them in Africa, to withstand global financial crisis. “The global financial crisis is moving many LDCs into troubled waters with heightened risk to exports, investment, credit, Banking Systems, budgets, the balance of payments, and remittances, and, the most vulnerable are those countries which depend...

India needs to strengthen and liberalise its regulatory framework and invest more in infrastructure in order to attract increased foreign direct investment (FDI), according to a new OECD report. The OECD’s Investment Policy Review of India says India has designed policies to encourage investment as part of market-oriented reforms since 1991 that have paved the way for improved prosperity. “Restrictions on large-scale investment have been greatly relaxed. Many sectors formerly reserved to the...

Non-governmental organizations are making a difference to the lives of poor and marginalized people in India. Most work in geographically limited areas. They are idealistic and want change, and hope to enter the lives of those they work with. Funding agencies and NGOs are enthused by any sign of change in the long-failed state of Bihar. A virulent and discriminatory caste system that deprives the lower castes even of government-funded...

One of the standout features of the monetary stimulus in India has been the wide divergence between the RBI’s policy rates and the actual lending rates of banks — the latter haven’t fallen nearly as much as the RBI would have liked. On Wednesday, Governor Subbarao ticked Indian banks off for the stickiness and non-transparency in lending rates and urged them to get out of the mindset which has led...

When the Indian government met the largest economic crisis the world has faced in nearly 80 years with tax cuts, aid for rural workers and interest rate cuts, critics said it was not enough. Now, though, it looks as if the policy makers may have offered too much. India’s $1 trillion economy, largely insulated from the global crisis by low reliance on exports and a heavily regulated Banking System, has exceeded expectations...