India Needs to Increase Investment in Agriculture

According to The World Bank, 60% of the total land in India was found to be suitable for agriculture in 2021 against the world average of 38.4%. However, the share of cultivated land was only 53.7% of the total land in India of which 50.4% is arable and 3.3% is covered permanent crops, 24.4% of total land area is forest land and rest is used for other different purposes.

As per the definition given by Food and Agriculture Organization of United Nations (FAO), agricultural land covers only 38.4% of the world’s land area in 2011. However, only 10.9% of the global land area is arable that can be used for growing crops and just 1.2% of global land area is covered by permanent crops.

Micro ATMs are Helping Fill the Gaps

Financial inclusion has been a multifaceted problem for the whole world. The whole world is facing difficulties bringing in people in the formal financial system. Even the developed countries cannot claim to have brought its citizens into the formal financial system. And when it comes to a developing country like India, financial inclusion is a herculean task. However, India’s performance in bringing her citizens into the formal financial system in the last decade is really remarkable.

A number of initiatives and schemes such as Jan Dhan Yojana to Pension Yojana to Mudra Yojana etc. have been started by the central government in India over time to bring in people in the formal financial network but still a long distance is yet to be covered. There are crores of individuals who are still not part of the formal financial system or cannot access the formal financial system. Though, the government has been trying to use every possible initiative and technological advancement to advance financial inclusion in India. ATMs have also been used to increase financial inclusion in India especially in rural India.

Credit Cards are Becoming More Popular in India

Anything and everything has some direct or indirect impact on people and their behaviours and responses. Globalisation, technological advancements, innovations and the different practices in different parts of the world have together completely changed the markets and so the consumers’ behaviours. These have brought in significant change in the financial behaviours of the consumers also and India is not an exception to this phenomenon. Rather India has been a pioneer in many changes these days especially after 2010.

All types of loan products were traditionally considered to be the last option and if possible were expected to avoid loan products as much as possible and financial institutions were always the last assort for the people. However, there is a significant change in the financial behaviour of Indian consumers over the last decade.

Media Against Bharat in G-20 Summit

A large number of news outlets irrespective of foreign or Indian, were hell-bent on declaring the G20 Summit a failure with the purpose to discredit Bharat before the G-20 Summit had even started! The Print, The Wire, Hindustan Times, Business Standard etc. along with the foreign news outlets were loudly declaring with huge confidence that there would be no New Delhi Leader’s Declaration because of non-consensus among the members! Why? Because the European countries and the USA wouldn’t tone down on the Ukraine-Russia war and India wouldn’t go against Russia. Rather India would opt for the middle path. So they were certain!

EAST vs WEST: Divergent Responses to the Russia-Ukraine War

The Russia Ukraine completes a year – much to the dismay and wonder of all, especially Russia which could not have expected this stiff resistance from a small neighbour. The world has responded with anger, anguish, dismay and much more, as the war has taken a toll on countries worldwide. There have been varied responses by countries across the world, and there are some questions and observations about the East vs West response.

The Asian response has been cautious and watchful and followed a nuanced path as the war has progressed. The current responsiveness of countries such as China and India is based on pragmatism to cope with the multiplier effect of the pandemic, compounded by the current conflict. As the post-pandemic global environment led to the worst-ever economic depression in decades, responses of countries have attempted to combine domestic issues of survival with social and ethical concerns. The current conflict has exacerbated the global crisis as prices of food, oil and fertilisers have skyrocketed across the world, complicating domestic issues for many Asian countries.

Adani, Valuation and Share Prices

Post Hindenburg’s report, a kind of saga unfolded causing temporary chaos in the Indian security market and raising large numbers of questions relating to Adani Group ranging from financial reporting to stock price manipulations to corporate governance. But it becomes pertinent to ask whether those questions are relevant or not.

It is not that the Adani Group is beyond question. There are a large number of serious questions that should be asked and are being asked as well. However, a lot of people have suddenly woken up to ask questions relating to the valuations of the Adani Group stocks post-Hindenburg saga and the withdrawal of FPO by Adani Enterprises.

Adani Group: What has Changed?

Adani FPO has now been oversubscribed by 1.12 times amid huge chaos created by Hindenburg's report on Adani Group and doubts about the success of the FPO. From the data available about the subscribers, it is crystal clear that the non-institutional investors including family offices of wealthy families along with anchor investors have played an important role in the success of FPO.

As far as the subscribers’ interest in the FPO was concerned, for two days, there was hardly any taker of the FPO in the retail and NII segment. However, the investment from Abu Dhabi-based International Holding Company (IHC) worth $400 million in the FPO completely changed the environment and the prices of Adani Group companies not only stopped falling but some shares witnessed an increase.

Hindenburg’s Report on Adani and Its Ramifications

Hindenburg Research has come up with a report on the Adani Group which clearly alleges that the Adani Group firms have been involved in financial window dressing and stock market manipulations. These are very serious allegations with huge consequences and repercussions for the Adani Group in particular and the Indian economy in general. The shares of the Adani Group companies are on free fall since the report has gone public. Not only this but the report has also negatively affected the sentiments and volatility in the Indian stock market and many other stocks have to bear the brunt as a result of negative sentiments in the market.

National Education Policy 2020

The Indian government has formulated and finalized the National Education Policy 2020 which is replacing the National Policy on Education 1986. It will be implemented soon across India which over time aspires to change the whole landscape of Indian education sector from elementary level to higher education as well as vocational education. It aims to bring in qualitative changes in the whole education system making it competitive and at par with international standards! In the new policy there are many changes which will have a long term impact on the whole education system in India in due course. However, there are four important areas relating to higher education which need focus; accreditation of higher education institutions (HEI), funding of HEIs, the choice of language and the scope of online education in the overall education system.

Corona Vaccine for All

Coronavirus has already infected more than 18 crores people across the globe. More than 39 lakh individuals have also succumbed to this deadly virus. These are the reported statistics relating to the coronavirus pandemic. Lakhs of people are left with no family and thousands of children have become orphans. Crores of people across the globe have lost their livelihoods and have been forced into the vicious circle of poverty and are struggling for a square meal a day! World economy is left in lurch and there lies only uncertainties ahead. All this is happening when the governments, non-governmental organizations as well as the citizens across the world have been trying to provide the maximum support to everyone in need in the times of pandemic! Even at this point of time when hundreds of millions of doses of the vaccines have been administered to people, everyday more than 3.5 lakhs of individuals are getting infected with the virus and more than 7 thousands individuals giving their life to this undying virus.

The Assault on Arnab Goswami and the Freedom of Press

The tone and vendetta journalism of Arnab Goswami can never be appreciated in any way. His activism in the name of journalism in cases of Sushant Singh suicide, Kangana Ranaut, Rhea Chakraborty as well as the personal attacks on different politicians and personalities than asking uncomfortable questions using the platform of a TV channel was uncalled for. However in the heightened emotions of political hue and cry, this hooglism seemed justified to millions of Indians who enjoyed it but at their own deadly cost (to be paid in future)!

An Absurd Comparison between India and Bangladesh

Post the World Economic Outlook Report by the International Monetary Fund (IMF), there has been an absurd comparison between India and Bangladesh. This comparison is highlighting that the per capita GDP of Bangladesh will overtake India’s per capita GDP this year. However, in this politically hot discussion many important and vital issues mentioned in the same report, remain in background which have far higher impact on the economic future of India.

Will Economic Relief Package Prove Relief to MSMEs?

The economic relief package of ₹20 Lakh crores includes the money to be spent through fiscal as well as monetary policy responses. However, the actual money that the government would directly be spending to boost economic activities would be around ₹6 Lakh crores; far less than the announced ₹20 Lakh crores. It does not mean that the amount of ₹20 Lakh crores is a token amount. The government through these measures wants to actually increase liquidity by ₹20 Lakh crores in the economy over time. Monetary policy response route is being taken because the government needs to manage fiscal deficit so that there are no significant negative consequences on the front of exchange rate and inflation.

A Narrative and Religion of Violence

You may find all the valid reasons to justify the attack on Arnab Goswami. You can put forth n numbers of arguments against him to justify what happened. Even you may end up having a fabulous vision too! That's okay. No questions asked.

But remember, you would also be treated in the same way some day by somebody for the same reason that is airing your views! That moment you will feel vulnerable. Then perhaps you will find yourself very weak and will cry when nobody will stand up for you. However, that also would be a bad thing but that would be just a continuation of the same bad precedent that has been and is being justified on social media by many. A narrative and religion of violence! But the Karma comes back to haunt us all till the end! No matters who we are?

India's Response to Chinese Efforts to Buy Stakes in Indian Firms

People's Bank of China, the Chinese central bank amid the Covid crisis has increased its shareholding in India's HDFC. Not only in India but it has bought shares of financial institutions and technology firms in most of the countries across the globe during the stock market crash caused by the Coronavirus pandemic. This particular transaction is an official transaction. It is quite possible that a number of such transactions might have been carried out by Chinese firms (real and dummy) and individuals in many Indian firms which are strategically important for India.

There remains no doubt that it would be very difficult for many Indian firms to survive the financial onslaught post Covid and would be prone to hostile takeover by foreign entities. It was also possible that pursuing its own design China might have bought out many Indian firms through backdoor such as firms from tax havens and other allied nations besides the direct share purchases by Chinese nationals and firms. There was a need for policy intervention and thankfully Indian government did that by amending the automatic foreign direct investment rules. It is expected to check and reining in such possibilities.

Coronavirus: Why a Fear Frenzy Behaviour?

Because of the peculiar nature of the Coronavirus caused influenza, the movement of goods and human capital is going to be adversely affected in the world economy as a result of the falling human confidence at global level. The news related to Coronavirus have made human psychologically afraid about this particular flu which is not uncalled for. As a result, the oil and stock prices are now free falling across the globe. In India, Sensex has fallen by more than 5000 points in a few days. Same is true with global stock market. Most importantly, none knows where it all will stop?

Yes Bank Failure: A Collective Failure of Regulators

The arrest of Rana Kapoor by Enforcement Directorate (ED) after hours of questioning and the problems arising at Yes Bank are not something that are related to the problems at Yes Bank only. It is part of a bigger story and is result of collective regulatory failure. News are not talking that ED is expected to question Rana Kapoor’s wife too in the same case. These incidents at Yes Bank are not just related to Yes Bank only and stray events but also have direct links to scams and ongoing high profile investigation in DHFL case. In case of DHFL many financial institutions and individuals (celebrities and professionals) are said to be involved to varying degrees.

Lack of Reforms Led to Slowdown in Indian Economy

In the period of 2004 to 2016, there was no major economic reform in the Indian economy. Prior to 2004, the NDA government during its six year tenure from 1998 to 2004 had introduced many economic as well as financial reforms and successfully integrated the old system with the new ones. As it is the fact that any reform usually takes time to reflect in form of results. The same was true during that period as well. The benefits of those reforms started reflecting after only 2004.

As a result of reforms in the economy at structural level, the GDP growth rates started accelerating and crossed the mark of 8% in 2006. However this high rate of growth in GDP could not sustain longer in lack of further reforms required by the changed economic and institutional realities which were result of globalization as well as economic and financial integration with the world. Also post 2004 period, government kept on increasing expenditure without arranging for increase in revenues.

By the end of second term of UPA government, there were enough sings of fractures in the economy. This alarmed the government to take curative actions but forthcoming election did not allowed the government to exercise much required discipline.

One has Right to Protest but Peacefully

Every citizen or group has right to disagree with the government in a democracy if they find that their rights have been compromised by mala fide intentions. This is their fundamental duty to oppose to any such oppression. For that they can take any progressive route of protest but it must be peaceful in all ways without any question and condition. The history tells when the protests are peaceful; those often result into better conditions for the protesters and sometimes create history.

WTO Questions India’s Plan to Revive Farm Sector

The farm support plans announced by India and the United States have created a lot of noise mainly among the developed nations with surplus agriculture produce. These are under the scrutiny by the World Trade Organization members in WTO’s quarterly agriculture committee meeting on June 25-26. Specifically the European Union and Australia has asked India to explain the Modi’s proposal to spend Rs 25 lakh crore on agriculture and rural development and doubling farmers’ incomes by 2022 as part of Rs 100 lakh crore, five-year infrastructure development plan. Even the US is out asking questions about India’s 5% export subsidy for non-Basmati rice as well as increasing purchase of wheat at higher minimum support prices by the Indian Government even when India has record wheat stockpile. 

It seems that the USA, Australia, European Union and other nations are considering the purposed ‘transport and marketing assistance’ for agriculture as an export subsidy and these countries are of view that after the implementation of this plan, India will breach the allowed ‘product specific’ ceiling of 5% of the value of production. These countries think that India’s plan is a trade-distorting subsidy with goal to dump its surplus stock in foreign markets. They fear that it will have negative impact on competitors in international market. So they want every detail of this purposed plan as the WTO has strict rules about the size and nature of payments. 
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