The Fall Of The Rupee Prabhat Patnaik

The rupee’s current tendency to fall is hardly surprising. India’s growth experience, unlike China’s, was built on the quicksand of a more or less persistent trade and current account deficit on the balance of payments. But there was always enough financial inflow not just to cover the current account deficit but even to add to our foreign exchange reserves. Initially this inflow was stimulated by the sheer fact of the economy’s being opened up to such flows: wealth-holders abroad got a chance to diversify their portfolios by buying into hitherto- unavailable Indian assets. Later, the higher interest rates in India…

The Indian Economy in A Tailspin Prabhat Patnaik

The Indian economy is in a tailspin. This cannot be attributed only to innocence in economic matters of the command-centre of the NDA government. While that is indubitably a contributing factor, the current travails of the economy point to something deeper, namely the dead-end to which neo-liberalism has brought the economy. Without moving away from the neo-liberal trajectory, the economy cannot come out of its current difficulties. India’s success in raising the GDP growth rate, the main selling point for the neo-liberal regime, was, unlike China’s, built upon the quicksand of a persistent trade and current account deficit on the…

Has there been an MSP hike for Kharif Crops? Prabhat Patnaik

Much has been written by now exposing the fraudulence of the government’s claims of a “historic” rise in the Minimum Support Price for kharif crops. It has been pointed out for instance that while the Swaminathan Committee had recommended that the MSP should be fixed at 50 percent above the cost of production C2 which includes rental on own land, a recommendation that the BJP in its 2014 election manifesto had promised to implement, the current MSP still falls way below that level.The claim that the government has fulfilled its campaign promise,made by the BJP and its subservient media, is…

A Legacy of Vulnerability C. P. Chandrasekhar and Jayati Ghosh

Recent months have been marked by an exit of foreign investors from India’s financial markets, triggered by the end of quantitative easing in the US and Europe and hikes in policy interest rates in the former. This has resulted over the last few weeks in a sharp depreciation of the rupee relative to the dollar, which not only raises the rupee costs of imports, but also the rupee equivalent of payments made to service foreign debt. That has meant that India is now paying the price for a legacy of debt built up during the years when the Federal Reserve…

The Roots of the Agrarian Distress in India C.P. Chandrasekhar

The policy shifts of the reform era have not been in favor of agriculture. Trade liberalisation, deregulation and a greater role for market forces have not benefited the farmer, who is trapped in a persisting crisis. It is time for today’s policy makers to recognise their own disconnect, and learn from the evidence at hand. Agrarian_Distress (Download the full text in PDF format) (This article was originally published in the bloombergquint on June 27, 2017)

The Economy Under Modi Prabhat Patnaik

The Modi government’s record in tacitly supporting the actions of  a bunch of vigilante thugs who have been terrorizing the country, especially the Muslims and the dalits, in the guise of gaurakshaks, or opponents of love jihad, or “nationalists”, has been so outrageous that it has grabbed all the critical attention. In the process the government’s abysmal failures in other spheres has gone virtually unnoticed. One such sphere is the economy whose dismal state is sought to be camouflaged by hyped-up figures of growth of the Gross Domestic Product (GDP). In fact, GDP figures these days engage one like an…

Imperialism Still Alive and Kicking: An interview with Prabhat Patnaik

An interview by C. J. Polychroniou C. J. Polychroniou: From the 1980s onwards, with the process of economic globalization having picked up speed, the concept of Imperialism has been largely removed from the political lexicon of much of the Western Left, deemed essentially irrelevant for understanding and explaining the dynamics of contemporary capitalism. However, you beg to differ with this assessment, and have been vociferously arguing for the continuing relevance of imperialism. Firstly, how do you define imperialism and, secondly, what imperialist tendencies do you detect as inherent in the brutal expansion of the logic of capitalism in the neoliberal…

The Continuing Debt Problem in Asia C.P. Chandrasekhar and Jayati Ghosh

Private household debt is going to be a major concern for many Asian economies as excessive household debt and falling realty prices combine to create a potentially potent mix. Continuing_Debt_Problem (Download the full text in PDF format) (This article was originally published in the Business Line print edition dated December 8, 2015)