ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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‘Riskless Capitalism’ in India

A study of the financial processes underlying India’s high-growth trajectory of the 2000s and its relationship with “riskless capitalism,” a term first used by Raghuram Rajan in November 2014, finds that the Indian growth story cannot be over-simplistically explained as a result of “market-oriented” reforms. Public sector bank credit-financed investments, particularly in the infrastructure sector, played a significant role in sustaining growth, most crucially after the global economic crisis. Such a growth trajectory, however, proved to be unsustainable with the expansionary phase coming to an end in 2011–12 and bad loans piling up in the banking system.

Adani Group Accused of Evading ₹1,000 Crore Taxes in Diamond Trade

The authors would like to clarify that the first paragraph in the “Conclusions” section (p 40) should have read as follows: “The DRI filed an appeal against the CESTAT order in the Supreme Court on 6 April 2016, which was eventually disposed of on 22 July 2016. The Ministry of Finance now has to file a review petition against this decision. The question that remains unanswered: what has dissuaded the ministry from filing this review petition even though more than five months have gone by?” This is the corrected version of the article. The corporate conglomerate headed by Gautam Adani has been accused by the Directorate of Revenue Intelligence of having allegedly evaded taxes and laundered money to the tune of around ₹1,000 crore while trading in cut and polished diamonds and gold jewellery. The DRI has claimed that companies in the Adani Group misused export incentives and indulged in high-velocity circular trading through a complex web of front companies located in different parts of the world. The government seems strangely reticent about filing a review petition in the Supreme Court that could protect its revenue interests.
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