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

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Budget 2021–22 and the Manufacturing Sector

The growth rate of manufacturing value added has been declining continuously since 2016–17 and it had become negative in 2019–20, even before the intensification of the Covid-19 crisis, suggesting that the budget needs to address the structural weaknesses of the economy. The 2021–22 budget has largely adopted the supply side corrective measures in the form of increased capital expenditure on infrastructure. The potential of infrastructure investment in reviving the sector and the implications of the proposed resource mobilisation for financing the increased capital expenditure are discussed. In the context of increased global fragmentation of production, the feasibility of promoting domestic production through tariff protection is also discussed.

India’s Slowdown

Investments in industry have slowed down considerably in the recent years, as has agricultural growth. Falling levels of capacity utilisation, building up of food stocks and the state of liquidity in the economy sufficiently prove that the problem today is the lack of demand. Rural distress, rising inequality and falling real wages are driving down demand. The government’s response to the slowdown has been woefully inadequate. The biggest impediment to policymaking is not the lack of ideas, but the blinkered vision of economics.

India’s Domestic Pharmaceutical Firms and Their Contribution to National Innovation System-building

Domestic pharmaceutical firms continue to operate under the influence of the strategy of global integration of the pharmaceutical industry and healthcare. The link between domestic firms and public sector research organisations is the weakest link in the domestic pharmaceutical industry due to misguided policies in competence-building and innovation system-building after India accepted the Trade-Related Aspects of Intellectual Property Rights Agreement in 1995. The government should rethink its strategies to get domestic firms to contribute to system-building activities and prioritise investment into the upgrading of processes of learning and building competence.

How to Make Budgets with a Dearth of Data

Given that the reliability of official data has come into question, there is no way to understand the full extent of the issues that various sectors are facing without accurate data.

Literary Cultures in North East India

The history of a community’s literature has usually been inseparable from the history of the language in which the literature is produced. In North East India, the problem arises in the case of those communities which have a rich and vibrant oral tradition, but no written texts. When writers from these communities adopt a literary language which is alien to their culture, they have to understand the historical conditions that enable them to use that language. The literary cultures in this region have witnessed a gradual shrinking of frontiers from the trans-regional vernaculars to a confined and limited regional space, where atomisation of cultures is more visible than development of cosmopolitan vernaculars.

Why Wage Differences Exist across Sectors?

Inter-industry differences in wages are substantial, and over time, they do not seem to be disappearing. Productivity is a determinant of wage differences across industries, though the association between them is not very strong at the aggregate level or for intermediate goods, capital goods, and consumer non-durables. Trade liberalisation enhances productivity and wages at the aggregate level, and also in the case of basic goods and capital goods. However, in an attempt to raise productivity, firms may extract more work from those who are already engaged, and tend to pay them less than their due share in certain industry groups. Contractualisation and feminisation show similar effects for all the industry groups except the intermediate goods industries, and has a worsening effect on wages and also productivity.

Continuous Revisions Cast Doubts on GDP Advance Estimates

Two recent press releases by the Central Statistics Office substantially revise the new series of National Accounts Statistics. The new releases are more than just routine updates, and entail methodological changes and incorporate new sources of data, perhaps in response to various critiques. Yet, on comparing the advance estimates released with past such estimates, the CSO's latest growth projections once again turn out to be far too optimistic.

Liberalisation and Growth of Firms in India

This study analyses the impact of the liberalisation policies on the growth of firms in India. It analyses the inter-firm differences in growth rates over a seven-year period. The basic unit is the firm and the study allows for the entry and exit of firms during the sample period. Further, the authors show that not all firms have benefited from the liberalisation measures. There were gainers and losers. The impact of the determinants on growth has not remained constant over the years but has changed during the process of liberalisation.

What Ails Kerala's Economy:A Sectoral Exploration

The `Kerala model' of development has been facing a serious crisis due to low growth, high cost, low productivity, low investment and low employment in the state economy. This paper analyses the performance of major sectors of the state economy, such as agriculture, industry and the financial sector, during the past two decades and brings out the problems they confront. The paper highlights the lack of a development strategy in Kerala for growth and employment generation.

Australia in India

If the 1990s marked an intensification of the process of `globalisation', within the policy discourse of the higher education sector that process has manifested itself through the idea of the `international university'. In part, internationalisation implies a redefinition of higher education as a globally marketed commodity or as an export oriented `industry'. These developments are examined by means of an analysis of the internationalisation of Australian education, and the operational procedures, strategies, and expansionist market objectives of Australian higher education institutions in India. It is argued that, under the hegemony of neo-liberal ideology, these international linkages are emerging as a result of the transformation and restructuring of the higher education sector in both nations.
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