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New report by American Bar Association exposes the dark underbelly of Indo-US sandstone trade

Often exports made by a country to the rest of the world is seen in a positive light by us. It is because exports not only earn precious foreign currencies (that can be used for importing goods and services or simply be used for building forex reserves), it also helps in generating Effective Demand for goods and services produced in that country and hence, contributes to economic or GDP growth....

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What the Centre really needs to do if it wants to tackle the economic slowdown -Amiya Kumar Bagchi

-TheWire.in Both the Modi government and former Prime Minister Manmohan Singh are ignoring one crucial aspect of reviving the economy: raising Effective Demand. Only a few weeks ago, the central government was talking grandly about India reaching a $5-trillion economy and refusing to recognise the severe slowdown India is going through. (This is not such a grand ambition when compared with China, which is often portrayed as India’s competitor, because by 2025,...

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Adopt a green growth strategy to boost the sluggish automobile sector

Among the measures announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 23rd August, 2019 to arrest economic downturn, the following are noteworthy: * Allow Bharat Stage IV (BS-IV) vehicles (which are purchased till 31st March, 2020) to remain operational for the entire period of registration; * Government shall lift the ban on purchase of new vehicles for replacing all old vehicles by its various departments; *...

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Dip in tractor sales indicate further deepening of rural distress

In the financial year 2017-18 when tractor sale touched new heights, it was said by many of the NDA (viz. National Democratic Alliance) government supporters that rural demand has revived on account of adequate monsoon rainfall and higher minimum support prices for crops. Many economists and newspaper columnists also denied the existence of any rural distress. An alternative perspective, however, was also presented by rural economists like Dr. Himanshu who teaches...

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Rural distress is real: Negative monthly growth of real wage rates witnessed in rural areas for 9 consecutive months, starting from November 2017

Growth in rural wages not only indicates economic prosperity of the masses, it is also considered important so as to generate Effective Demand for goods and services, which is produced by various sectors of the economy. When money becomes available in the hands of rural workers due to government spending on programmes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), it generates demand for commodities. The production of...

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