India’s Quiet Rise
https://www.project-syndicate.org/commentary/india-rise-to-prominence-opposite-of-china-by-brahma-chellaney-2023-09
The end of China’s four-decade-long economic boom has thrown into relief the emergence of Asia's other demographic giant as a geopolitical and economic force. But while India appears stable and resurgent under Prime Minister Narendra Modi, its future will depend on its ability to maintain political stability and rapid economic growth.
The end of China’s four-decade-long economic boom has thrown into relief the emergence of Asia's other demographic giant as a geopolitical and economic force. But while India appears stable and resurgent under Prime Minister Narendra Modi, its future will depend on its ability to maintain political stability and rapid economic growth.
India’s gain could be China’s loss in the great
supply chain reallocation
https://www.scmp.com/comment/opinion/article/3233399/indias-gain-could-be-chinas-loss-great-supply-chain-reallocation
https://www.scmp.com/comment/opinion/article/3233399/indias-gain-could-be-chinas-loss-great-supply-chain-reallocation
China Finally Has a Rival as the World’s Factory Floor
https://www.wsj.com/articles/india-china-factory-manufacturing-24a4e3fe
Companies look to find a backup for manufacturing and India is making its case
https://www.wsj.com/articles/india-china-factory-manufacturing-24a4e3fe
Companies look to find a backup for manufacturing and India is making its case
South Korean companies increasingly see India as a viable alternative to China
https://www.scmp.com/comment/opinion/article/3219894/south-korean-companies-increasingly-see-india-viable-alternative-china
https://www.scmp.com/comment/opinion/article/3219894/south-korean-companies-increasingly-see-india-viable-alternative-china
India’s economy is surging thanks to these three revolutions
https://www.washingtonpost.com/opinions/2023/04/28/india-revolutions-economy-growth-future/
https://www.washingtonpost.com/opinions/2023/04/28/india-revolutions-economy-growth-future/
Cautionary Note:
India was well placed to steal a march on China – but it didn’t invest in its human capital
https://www.telegraph.co.uk/business/2023/09/05/india-china-global-economy-powerhouse/
https://www.telegraph.co.uk/business/2023/09/05/india-china-global-economy-powerhouse/
Research Articles:
Why Output Rises Faster than Employment in the
Service Sector of India?
https://www.epw.in/journal/2023/28/special-articles/why-output-rises-faster-employment-%C2%A0-service.html
India’s exceptional growth pattern after the 1980s is attributed to the robust growth of the service sector. The growth pattern of services is not homogeneous and uniform. However, it is spearheaded largely by modern services than traditional ones and is more K-intensive than labour-intensive service. India’s service sector is no exception to modern services-led growth owing to rising capital intensity and the worldwide phenomenon of technology-biased growth. Further, these transitions in the services have a direct bearing on employment generation.
Institutional Quality and Foreign Direct Investment in India
https://www.epw.in/journal/2023/37/special-articles/institutional-quality-and-foreign-direct.html
Foreign direct investments tend to gravitate to nations with good governance. The quality of governance is largely affected by institutional factors such as control of corruption, government effectiveness, political stability, regulatory quality, rule of law, voice and accountability. This study contributes to the existing literature on foreign direct investments by testing the impact of six parameters of institutional quality on investment inflows into India.
https://www.epw.in/journal/2023/28/special-articles/why-output-rises-faster-employment-%C2%A0-service.html
India’s exceptional growth pattern after the 1980s is attributed to the robust growth of the service sector. The growth pattern of services is not homogeneous and uniform. However, it is spearheaded largely by modern services than traditional ones and is more K-intensive than labour-intensive service. India’s service sector is no exception to modern services-led growth owing to rising capital intensity and the worldwide phenomenon of technology-biased growth. Further, these transitions in the services have a direct bearing on employment generation.
Institutional Quality and Foreign Direct Investment in India
https://www.epw.in/journal/2023/37/special-articles/institutional-quality-and-foreign-direct.html
Foreign direct investments tend to gravitate to nations with good governance. The quality of governance is largely affected by institutional factors such as control of corruption, government effectiveness, political stability, regulatory quality, rule of law, voice and accountability. This study contributes to the existing literature on foreign direct investments by testing the impact of six parameters of institutional quality on investment inflows into India.
Is Inequality the Unstated Constraint
on India’s Growth?
https://www.epw.in/journal/2023/27/special-articles/inequality-unstated-constraint-%C2%A0indias-growth.html
The study of economic growth in India has tended to be dominated by discussions on the effects of policies associated with liberalisation. Consequently, several other questions that are important to India’s growth story have not received adequate attention. This paper looks at two such questions: How does India determine how much it must save for growth? And who bears the burden of these savings through constraints on their consumption? This paper seeks answers to these questions from the experience of the post-independence Indian economy. In the process, it captures the part that inequality has played in generating the savings required for India’s rapid growth since the mid-1980s, a role that it is no longer in a position to play.
https://www.epw.in/journal/2023/27/special-articles/inequality-unstated-constraint-%C2%A0indias-growth.html
The study of economic growth in India has tended to be dominated by discussions on the effects of policies associated with liberalisation. Consequently, several other questions that are important to India’s growth story have not received adequate attention. This paper looks at two such questions: How does India determine how much it must save for growth? And who bears the burden of these savings through constraints on their consumption? This paper seeks answers to these questions from the experience of the post-independence Indian economy. In the process, it captures the part that inequality has played in generating the savings required for India’s rapid growth since the mid-1980s, a role that it is no longer in a position to play.
Jobless Growth in the Informal Sector
The ‘Unemployment Kuznets Curve’ in India
https://www.epw.in/journal/2023/25-26/special-articles/jobless-growth-informal-sector.html
When capital is accumulated in the labour-intensive informal sector, then the economy witnesses growth, stagnant employment in the formal sector, persistent unemployment and wage gap between formal and informal sector. Whereas investment in the capital-intensive formal sector leads to increase in unemployment during the initial phases of growth, however, if investments are continued, then full-employment conditions with closure of the wage gap are observed. Growth accounting exercise for the “establishment” and “own account enterprises” for the informal sector in India revealed that capital is more responsive in “establishments.” Also, subsidised capital in the formal sector will lead to full-employment conditions with closure of the wage gap.
https://www.epw.in/journal/2023/25-26/special-articles/jobless-growth-informal-sector.html
When capital is accumulated in the labour-intensive informal sector, then the economy witnesses growth, stagnant employment in the formal sector, persistent unemployment and wage gap between formal and informal sector. Whereas investment in the capital-intensive formal sector leads to increase in unemployment during the initial phases of growth, however, if investments are continued, then full-employment conditions with closure of the wage gap are observed. Growth accounting exercise for the “establishment” and “own account enterprises” for the informal sector in India revealed that capital is more responsive in “establishments.” Also, subsidised capital in the formal sector will lead to full-employment conditions with closure of the wage gap.
Are Spectacular Growth and High Inequality Two
Sides of the Same Coin?
An Interstate Analysis of Post-economic Reformed India
https://www.epw.in/journal/2023/19/special-articles/are-spectacular-growth-and-high-inequality-two.html
An Interstate Analysis of Post-economic Reformed India
https://www.epw.in/journal/2023/19/special-articles/are-spectacular-growth-and-high-inequality-two.html
The emergence of India as an economic powerhouse
notwithstanding, growth has failed to trickle down to marginalised sections,
rendering inclusive growth a major concern. That has made India one of the most
unequal countries. In this context, the extent of inequality across states
during the post-economic reforms period has been analysed in this paper. Income
inequality is estimated by sourcing gross state domestic product data from the
Reserve Bank of India’s Handbook of Statistics on the Indian Economy and using
the Gini coefficient and Lorenz curve for 26 states and three union territories
from 1993–94 to 2019–20. During this period, the western and southern zones
have recorded a higher GSDP than the rest of the states in the country. The
Gini coefficient was the lowest at 0.25 for Andhra Pradesh and the highest for
Sikkim at 0.52. It is argued that the policy focus should not just be on a
higher magnitude of growth, but on equitable growth, which requires
region-specific interventions with a focus on several dimensions such as
setting up agro-processing storage unit storage and transportation and
generating accessible employment opportunities—supplemented by significant
investments in education and health.