Is the Indian economy a pack of cards?

Raghuram Rajan, Governor of the Reserve Bank of India, reacts during a media conference in Mumbai on 2 February 2016. Rajan’s shock announcement last week that he will be stepping down raises doubts about the Indian government's commitment to structural reforms. (Photo: AAP).

Author: Editors, East Asia Forum

The surprise announcement last week that Raghuram Rajan, Governor of the Reserve Bank of India, was stepping down sent shockwaves around the world. Rajan, a brilliant academic who came from the University of Chicago to take up the appointment under the Singh government, was credited with stabilising the economy and turning inflation around. Read more…

Can Modi deliver on Indian growth?

Indian Prime Minister Narendra Modi addresses the nation on the country's Independence Day in New Delhi, India. After two years of the Modi government, the Indian economy presents a mixed picture. (Photo: AAP).

Author: Rajiv Kumar, Centre for Policy Research

After two years of the Modi government, the Indian economy presents a mixed picture. Despite claims that it is the fastest growing large economy in the world, doubts linger about its actual health. Read more…

Demystifying Indian growth

Labourers carry wood piles for preparations of the Make In India summit in Mumbai, India. (Photo: AAP)

Author: Alok Sheel, Kerala

According to current IMF projections, India is now the fastest growing major economy in the world. In 2016, it is expected to grow over a full percentage point faster than China. This is a remarkable turnaround by any standard and especially impressive against the backdrop of a stagnant global economy.

Read more…

Making federalism work for India

Indian Prime Minister Narendra Modi during the oath taking ceremony of Sarbananda Sonowal as chief minister of the north-eastern Indian state of Assam, India. (Photo: AAP)

Author: M. Govinda Rao, NIPFP

In economic terms, the federal system was created with the intention of maximising economies of scale, while still providing public services to cater to people’s divergent preferences. But there is more to federalism than just the economics. In political terms, federalism involves building a strong national polity by combining sub-national entities and, in emotional terms, federalism provides a national bond while permitting multiple local identities to be retained.

Read more…

India needs to harness the market instead of fighting it

A Mising tribal woman weaves a traditional 'Mekhela-Chadar' garment on her loom ahead of Rongali Bihu celebrations in Sivasagar, Assam, India.

Author: Mark Fabian, ANU

Despite historical misadventures with socialism and recent positive experiences with liberalisation, India continues to regularly fight the market. The most recent example is the Delhi government’s move to ban Uber’s surge pricing, a regulation that can only result in a net social loss. Read more…

The failure of India’s EOUs

Author: Pravakar Sahoo, IEG and Bruegel

The export-oriented unit (EOU) scheme was launched in India in 1980 to boost exports and increase production. Under the scheme, Indian companies that produce goods solely for export can register as ‘export-oriented units’. Read more…

Reforms needed to sustain services growth in India

Indian Prime Minister Narendra Modi, addresses a public rally marking the end of Bharatiya Janata Party's two-day national executive meet in Allahabad, India, 13 June 2016. (Photo: AAP).

Author: Arpita Mukherjee, ICRIER

India is one of the fastest growing economies in the world and the services sector is the largest contributor to the country’s GDP. In 2015–16, the services sector accounted for 53.3 per cent of India’s gross value added at current prices. It is predicted to grow at 9.2 per cent a year at constant prices. But is this growth sustainable? Read more…