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Estimates of Unreported Economy in India-A Reply

Estimates of Unreported Economy in India Poonam Gupta Sanjeev Gupta WE had in our paper [Gupta and Gupta, (1982)] presented estimates of the unofficial economy in India on a yearly basis for the period 1967 to 1978. For this purpose, we employed a technique suggested by Feigc [1979], that has been used to determine the size of the unreported economy in many developed countries including USA and Canada. The results had shown that the unreported activity as a proportion of official GNP has grown from 9.5 per cent in 1967 to nearly 49 per cent by 1978. In his comment, Sandesara [1982] argues that our estimates are on the high side. The purpose of this reply is to show that the theoretical basis of Sandesara's criticism is weak and his methodology inappropriate. Further, his analysis indicates a lack of understanding of the functioning of the unofficial economy. In the next section, we briefly summarise Sande- sara's analysis mainly to highlight its shortcomings. The last section gives the estimates of total economic activity (consisting of both official and unofficial) in India prepared by other researchers which point to the . fact that our estimates of unofficial economy are by no means over estimates.

Estimates of Unreported Economy in India

Estimates of Unreported Economy in India J C Sandesara IN their paper (January 16, 1982, pp 69-75), Gupta and Gupta have presented statistics of the size of unreported economy of India for 1967-68 through to 1978-79.l In this paper, we look at these statistics, in the context of other statistics given or implied in their paper and in the light of other relevant considerations, and conclude that their statistics may heavily outsize India's unreported economy.

Calorie Norm Controversy

Calorie Norm Controversy V M Rao M Vivekananda THANKS to the recent burst of controversy in EPW on the calorie norm, measurement of poverty

On Measurement of Undernutrition

raises two issues of vital concern. First, the share of agriculture in national income Has been "recently declining. The constant proportion of workforce in agriculture, therefore, implies a fall in relative income per worker in agriculture. Second, there has been accelerated growth of urban population and workforce. Urban workforce is mainly non-agricultural. A rise in the proportion of urban workforce without a corresponding increase in the proportion of non-agricultural worker obviously implies a decline in the share of industries and services in rural employment which is contrary to the objective of rural industrialisation. Revaluation of policies aimed at promotion of rural industries acquires Obvious importance in this context.

Orissa Aluminium Complex

working amongst the tribals are ensuring, through organised struggle, the abolition of these remnants and the spread of the 'free' wage form. 12 For details on indebtedness and the Palemode system amongst Thane tribals, see Report of the Commissioner for Scheduled Castes and Scheduled Tribal for 1964-65, pp 77-79; and Report of the Committee on Problems of Illicit Moneylending and Bonded Labour, Government of Maharashtra,

Peasant Organisations in South India

about the caste character of the work Peasant Organisations in South India ers of the Communist Party who were involved in organising the rural poor M S S Pandian of Thanjavur: "For them [Harijans], IN his reply (June 13, 1973) to my comment (January 31, 1981) on his original article (Tune 28, 1980), K C Alexander has chosen to misrepresent quite a few of my points arid hence his reply does not correspond to the actual points I had made. Even where he has attempted replies otherwise, they are not based on any substantive evidence. Let met take his points one alter another, in the same order maintained by Alexander in his reply.

Patterns of Regional Development in UP

analyse Tamil Nadu Agriculturists' Association, Even there the substance of my point is that his treatment of Tamil Nadu Agriculturists' Association is based on inadequate and outdated data. Probably Alexander agrees with this part of the comment.

Agricultural Labourers and Poverty

culture: Causes and Remedies" Anvesak, 10, No L pp 1-40. [2] Bardhan, P K, 1980: "Interlocking of Factor Markets and Agrarian Development; A Review of Issues", Oxford Economic Papers, 32, No 1, pp 82-98. [3] Bhalla, G S and Alagh, Y K, 1979: 'Performance of Indian Agriculture", New Delhi, Sterling Publishers. [4] Bharadwaj, K, 1974: "Production Gonditioas in Indian Agriculture", London, OUP. [4a] Blyn, George, 1968: "Agricultural Trends in India,, 1891-1947: Output, Availability and Productivity", University of Pennsylvania Press. [5] de Vries, 1974: "The Dutch Economy in the 16th and 17th Centuries". [6] Hicks, J R, 1969: "A Theory of Economic History", London, OUP. [7] Jodha, N S, 1973: "Prospects of Coarse Cereals: Permanent Constraints of Jowar and Bajra", Review of Agriculture, December [8] Kahlon, A S and Tyagi, D S,

East and Southeast Asian Perspective on Indian Agriculture

on Indian Agriculture T K Chakraborty P S Karode YUJIRO Hayami's sojourn in India to make a few field trips to the rural areas was quite productive as witness his note on agrarian problems in India (April 18, 1981). Some of his interesting observations are:

Agrarian Programme of Left Front Government in West Bengal

Agrarian Programme of Left Front Government in West Bengal Buddhadeb Bose THIS has reference to the two articles, one by Ratan Khasnabis and the other by Ashok Rudra (June 20-27, Review of Agriculture), on the agrarian Pro- gramme of the Left Front government in West Bengal. We shall first consider the views of Ratan Khasnabis.


TATA CHEMICALS LIMITED The following Statement by Mr. J. R. D. Tata, Chairman of Tata Chemicals Limited, dealing with the Company's working for the year ended 30 June 1981 has been issued to the Shareholders.


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