The Indian Economy Blog

Archive for July, 2007

Does ‘Disabled’ Have To Mean ‘Invisible’?

Tuesday, July 31st, 2007

I have worked in India and in Indian organisations abroad for a large part of my professional career. However when I think back I cannot recall more than 2 physically disabled colleagues during that entire time. Mind you, I am a sociable kind of person so my visual – and conversational – range extended beyond [...]

Big With Japan

Tuesday, July 31st, 2007

This week’s issue of The Economist has a report on how (and why) Japanese investment into China is declining. But the appeal of China as a manufacturing hub and a huge new market is not universally shared among Japanese businesses. Some companies are moving operations to other countries instead, and others are keeping business back [...]

Income Inequality In India: Growth, Health And Development

Monday, July 30th, 2007

Economists frequently cite economic growth as the surest way out of poverty for the developing world. In this context, China is an often mentioned example, where double digit growth has brought over 300 million people out of extreme poverty over the past few decades. But closely tied to growth is the question of equality – [...]

News Update (July 30)

Monday, July 30th, 2007

India’s growth rate to be revised upwards from 9.4% to 10.0 %, on the back of strong performance in agriculture and manufacturing. Close to 60,000 crores of investment being planned in the telecom sector over the next year, with an additional 80 million new consumers being targeted. In another indicator of the rapid evolution of the Indian [...]

Local vs Foreign

Sunday, July 29th, 2007

This is something about which I have been wanting to blog for a while, and would love to know what IEB readers think. Check out this article, written around March 2006, by Amelia Gentleman, the IHT correspondent in New Delhi. Its a well written article, and makes some good points, but what I found intriguing [...]

News Update (July 25)

Friday, July 27th, 2007

DLF to invest US$ 1.48 billion in Gujarat in a variety of real estate related projects. India Inc to spice up New York City with its India@60 celebrations (not sure why such an effort is needed, and IF it is, only for the US) Not exactly econ news, but the US has slashed aid to India dramatically, [...]

Expectations Matter

Wednesday, July 25th, 2007

George Akerlof’s seminal contribution to economic theory is in the area of information imperfection and how it affects markets. Information asymmetry between the buyers and sellers of used cars (very poor quality used cars are the lemons that Akerlof talks about) leads to that specific market failure. The role of expectations is critical in that [...]

Don’t Blame The Export Of Tuitions

Sunday, July 22nd, 2007

This week’s Economist carries a letter from a certain Murali Reddy of Lake Hiawatha, New Jersey. SIR – So, Krishnan Ganesh, one of the proud products of India’s higher-education system, is busy developing tools to help improve the quality of primary education in America by outsourcing teaching over the internet (Face value, June 23rd). Meanwhile, [...]

Job Mela 2.0

Sunday, July 22nd, 2007

What should Indian governments do to help citizens get jobs? The central government clearly has wrong ideas—it intends to impose job quotas in the private sector for ‘backward’ communities/classes, which is perhaps the second worst thing it can do (the worst being “creating” more government jobs before giving them away). And we are not even [...]

Oil Bonds

Saturday, July 21st, 2007

Once again, the petroleum minister Murli Deora has requested the finance minister to issue oil bonds. In what is becoming common practice now, the money thus raised is going to be used to “compensate the firms for selling below cost”. For starters, this move is simply bad financial practice, for it violates one of the [...]

My Passage To India

Wednesday, July 18th, 2007

Recently, we had an interesting back-and-forth about whether the Indian economy was overheating. Touchy topic these days: investors are worried that the bears will win the war for the airwaves, property seekers are worried that land is too dear, the finance wonks are blanching at valuations, the policy wonks are complaining about a lack of [...]

Wheat Procurement And Derivatives Markets

Wednesday, July 18th, 2007

So the government has done it again. After managing to procure only about 11 million tons out of the targeted 15 million tons from our farmers, the government has gone ahead and imported about half a million tons from the international market at a much higher price. A process which, in its entirety, ends up [...]

The Workplace Bully

Monday, July 16th, 2007

“What sort of a woman are you? When this child was born, it seems she was born with your brain, so you have none left.” These were the words of a manager I once had. Let’s call him “M”. Luckily – for me, that is – these words were spoken by him to his wife, [...]

Public Transport In India

Sunday, July 15th, 2007

The term itself is a misnomer in many ways. Which transport system in India is not public? The ubiquitous auto rickshaw is used as a “hop-in and hop-out” coach in many parts of India, operating with a fixed tariff rate on predetermined routes. In Udaipur (Rajasthan), a parterre and rear vomitory has been added to [...]

IEB meet-up Washington, DC: 22 July 2007

Saturday, July 14th, 2007

Actually the headline’s a bit of a misnomer — it’s just Arjun Swarup and me, the only two of the IEB crew in the DC metro area. However, if you’re in the DC metro area, we’d love to have you join us! Venue: Bombay Palace Date & time: 22 July 2007, 1 pm

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