Pub Date : 2019-11-14DOI: 10.1093/oso/9780199496464.003.0005
S. Sikdar
Soumyen Sikdar attempts to understand the contribution of external liberalization to post-reform growth performance. Current account openness has reduced the cost of importing intermediate inputs and technical knowledge. The services sector, helped by the telecom revolution, has efficiently exploited the burgeoning global demand for business process services. The demand pull effect has been much weaker for manufacturing, due to persistent domestic inefficiency and serious infrastructural deficiencies in addition to Chinese competition. Agriculture also continues to be hamstrung by supply side constraints in which decline in public investment has played a crucial role. There is a movement up the value ladder in exports, and import composition too has changed for the better, though much scope for improvement remains. There is evidence of total factor productivity growth, particularly in services. But foreign direct investment has failed to effect any major supply side change and foreign portfolio investment (FPI) has failed to bring down the cost of capital significantly or to stimulate stock markets adequately. The need to counter exchange rate volatility due to global risks driven volatility in FPI forced the RBI to take measures that impacted growth adversely. These risks are continuing as we wait for monetary policy to normalize in the major countries. A fact that greatly redounds to the credit of our regulatory framework is that despite its considerable openness the Indian economy could escape the global financial crisis relatively unscathed due to quick and appropriate policy response on many fronts.
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Pub Date : 2019-11-14DOI: 10.1093/oso/9780199496464.003.0004
K. Kanagasabapathy, Rekha Bhangaonkar, Shruti Pandey
K. Kanagasabapathy, Rekha A. Bhangaonkar, and Shruti Pandey address the issue whether the rate and quantum channels were complementary to each other over the period April 2001 to December 2017. Reserve Bank of India’s (RBI) monetary policy framework is characterized by use of multiple instruments combining adjustments in policy rate with a complex use of liquidity management operations, despite changes in the functioning of the monetary policy. They study easing and tightening phases of the policy cycle and bring out stylized facts on several relationships highlighting the impact of policy rate changes and liquidity conditions on short and medium term market interest rates and output and prices. An empirical analysis confirmed the linkage between the repo rate and the market related rates. On the quantum side, a bi-causal relationship is observed between repo and liquidity. Money and financial transmission market transmission is better established than that to the real sector. Shruti Pandey and K. Kanagasabapathy have worked on the revised version for the new edition.
K. Kanagasabapathy, Rekha A. Bhangaonkar和Shruti Pandey讨论了在2001年4月至2017年12月期间速率和量子信道是否相互补充的问题。尽管货币政策的功能发生了变化，但印度储备银行(RBI)的货币政策框架的特点是使用多种工具，将政策利率的调整与流动性管理操作的复杂使用结合起来。他们研究了政策周期的放松和紧缩阶段，并提出了几种关系的风格化事实，突出了政策利率变化和流动性条件对中短期市场利率、产出和价格的影响。实证分析证实了回购利率与市场相关利率之间的关联性。在量子方面，回购和流动性之间存在双因果关系。货币金融传导市场传导优于实体传导。Shruti Pandey和K. Kanagasabapathy为新版本编写了修订版。
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Pub Date : 2019-11-14DOI: 10.1093/oso/9780199496464.003.0007
R. Jha, Anurag Sharma
Raghabendra Jha and Anurag Sharma point out despite twenty years of accelerated growth, the persistence of mass poverty, perceived rising inequality, and their spatial variation cause disquiet. The accuracy of yardsticks that show improvement is questioned. Adequacy of nutrition, the traditional rationale for the poverty line, has not recorded impressive gains. The best means of lowering poverty, which reforms have not achieved, is to create mass scale jobs for poor and unskilled workers. The chapter advances suggestions for this and for better targeting of anti-poverty interventions. Aadhaar-based direct benefit transfers and attempts to expand low-skilled manufacturing in India are therefore hopeful signs.
{"title":"Poverty and Inequality","authors":"R. Jha, Anurag Sharma","doi":"10.1093/oso/9780199496464.003.0007","DOIUrl":"https://doi.org/10.1093/oso/9780199496464.003.0007","url":null,"abstract":"Raghabendra Jha and Anurag Sharma point out despite twenty years of accelerated growth, the persistence of mass poverty, perceived rising inequality, and their spatial variation cause disquiet. The accuracy of yardsticks that show improvement is questioned. Adequacy of nutrition, the traditional rationale for the poverty line, has not recorded impressive gains. The best means of lowering poverty, which reforms have not achieved, is to create mass scale jobs for poor and unskilled workers. The chapter advances suggestions for this and for better targeting of anti-poverty interventions. Aadhaar-based direct benefit transfers and attempts to expand low-skilled manufacturing in India are therefore hopeful signs.","PeriodicalId":281825,"journal":{"name":"A Concise Handbook of the Indian Economy in the 21st Century","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123501114","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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