The Aging of a Growth Engine C.P. Chandrasekhar and Jayati Ghosh

With the dollar value of exports declining, India’s software sector faces a historical crisis which may worsen, given the protectionist trends in the US and other uncertainties. Aging_Growth_Engine  (Download the full text in PDF format) (This article was originally published in the Business Line on February 13, 2018)

Budget 2018: The Finance Ministry’s Grey Shades of ‘Pink’

Has the Union Ministry of Finance really turned gender-sensitive at last? At least according to its own lights, it has. Indeed, the creators of the Economic Survey are so excited by this new perspective that they have been moved to colour the cover of their document pink. (Presumably, no one has yet told them about how such colour stereotyping is no longer fashionable.) And – instead of the usual practice of clubbing together matters relating to women with children, social sectors and other supposedly “soft” stuff – there is an entire chapter in volume I of the Survey devoted to gender and specifically…

Where’s the money, Mr Jaitley? Jayati Ghosh

This government is especially good at optics, at managing public perceptions to persuade people that it is working for them, rather than doing so. So it is no surprise that Arun Jaitley’s pre-election Budget Speech went on about how much his government cares for the people, the poor, for farmers, for women, for people running small and micro enterprises, and so on. Many major claims were made: not just about the recent past, but about the coming fiscal year, with supposedly massive increases in public spending that would be directed towards these hitherto-ignored categories of people. But the actual increases…

Did the FM deliver for Farmers? Jayati Ghosh

For those with short memories, let’s remind ourselves that Arun Jaitley has been promising “top priority to farmers” for a while now. Indeed, this government came to power in 2014 promising to double farmers’ incomes in five years. Four years later, that goal post has been shifted, with all official documents now declaring that farmers’ incomes will be doubled by 2022, as per a “clarion call” given by Prime Minister Modi supposedly in 2017.  In fact, in Budget 2016-17, the Finance Minister had already announced a slew of measures that were supposed to double farmers’ incomes in five years, to…

The Financialization of Finance? Demonetization and the Dubious Push to Cashlessness in India C.P. Chandrasekhar and Jayati Ghosh

This Debate contribution describes the promotion of digital rather than cash payments as a form of the financialization of finance, in its role as a payments system, with reference to recent Indian experience. The obsession with digital transactions as a marker of social and material progress is misplaced; it may become yet another means by which finance extracts rentier incomes out of relatively poor populations. Financialisation_Finance (Download the full text in PDF format) (This article was originally posted in the Wiley Online Library)

A Note on Estimating Income Inequality across countries using PPP Exchange Rates Jayati Ghosh

The use of exchange rates based on Purchasing Power Parities to compare income across countries and over time has become standard practise. But there are reasons to believe this could lead to excessively inflated incomes for poor countries and in some cases also inflate the extent of real changes over time. Estimates of gross domestic product growth in Chinese and Indian economies in recent years provide examples of this. ELRR_PPP_Exchange_Rates (Download the full text in PDF format) (This article was originally posted in the Economic and Labour Relations Review on January 30, 2018.)

The Budget and the Farmers: The Government’s Dilemma in 2018 Jayati Ghosh

It is widely expected that this Budget is going to be oriented towards farmers, at least in declared intent. The Finance Minister has already declared this – and even if he had not, the political pressures for it are now obvious. Persistent agricultural distress has been intensified by demonetisation; farmers have been openly protesting in various parts of the country; and the number of farm suicides has started climbing once again. But for this government, all that was not seen as much of a problem when elections were not around the corner. Now that there is a real chance that…

Rising Incomes, Falling Wages Jayati Ghosh

It seems that everyone loves to talk about inequality, and how much they dislike it. From Christine Lagarde in the International Monetary Fund to the Indian Prime Minister speaking at the World Economic Forum in Davos, Switzerland, everyone is united in condemning inequality globally and in their own countries. But ironically, the ones – especially those in the public gaze – who are most vociferous about this also seem to be those who ultimately refuse to take any measures to deal with it, even when such measures are obvious and available. It is almost as if allowing people to vent…

Indian Banking: Current Challenges & Alternatives for the Future C. P. Chandrasekhar and Jayati Ghosh

Published by : AIBOC About the Book Indian banking today is at a tipping point. Banks are burdened with non-performing assets, incurring significant losses due to provisioning and unable to sustain credit growth, and therefore changes are both necessary and inevitable. There are possible strategies with very different implications: many leading banks could be restructured with state support and encouraged to regain the status they had as major instruments of development policy in the two decades after nationalization; or they could be allowed to weaken further, only to be swallowed up by large domestic and private players at bargain prices.…

Indian Banking: Current Challenges & Alternatives For The Future C. P. Chandrasekhar And Jayati Ghosh

The Politics of being a Dalit Woman Jayati Ghosh

In the political landscape of contemporary India, it is only too easy to find more reasons for depression than optimism. The rise of a nastier, more aggressive, communally charged and openly patriarchal political discourse is evident all around us. Oftentimes, it feels like the poet W.B. Yeats’ apocalyptic description is coming true: “The best lack all conviction, while the worst are filled with a passionate intensity.” Perhaps more than at any previous time in Independent India’s history, we are faced with existential threats to our most important institutions, and challenges even to the very notions of democracy and secularism that…