Industry

Lopsided industrialisation
09 May, 2017, C.P. Chandrasekhar & Jayati Ghosh
Recent trends in the organisational form of units in the registered manufacturing sector suggest that India’s factory sector is not just abnormal but backward to boot.
Industrial Growth and Demonetization
24 April, 2017, Prabhat Patnaik
Recent data on the manufacturing sector dispel all the lies that government propaganda has been peddling of late about demonetization having had no recessionary effect.
ICT: Implications of imbalanced growth
14 March, 2017, Chirashree Das Gupta
An analysis of India's ICT performance suggests that software export success tends to hide both imbalances in production and their adverse balance of payments fall-out.
Quarterly GDP Estimates: Curiouser and curiouser
02 March, 2017, Jayati Ghosh
CSO's latest GDP estimates for the third quarter throw up some real surprises as these run counter to all the evidence of depressed demand, of massive drops in sales, of job losses and of a significant hit especially on small scale and informal manufactured goods producers following demonetisation.
Power: The web of debt
03 February, 2017, C.P. Chandrasekhar
Caught in a peculiar web of debt, Jharkhand defaults on payments for power making the aim of NDA government’s scheme UDAY, announced with much fanfare, remain unrealised.
Demonetisation and India Inc
09 December, 2016, C.P. Chandrasekhar
Demonetisation exercise has adversely affected the functioning of medium and small enterprises, which carries out a substantial part of transactions, to buy inputs, pay workers, and distribute goods, in cash.
India's Export Collapse
30 November, 2016, C.P. Chandrasekhar & Jayati Ghosh
A peculiar combination of factors, besides the global recession, explains India's poor export performance in recent times.
How is India Inc Doing?
28 October, 2016, C.P. Chandrasekhar
The scenario of Inida’s manufacturing sector seems to be one where the sector, when considered as a whole, is settling for higher profits even at the expense of lower sales volumes.
Housing Market Frenzy in China
13 October, 2016, C.P. Chandrasekhar & Jayati Ghosh
The urban housing market in China is experiencing a bubble that is driving property prices to unbelievable levels in some of the major cities. But the divergence in recent trends in house prices suggests that this bubble may soon burst.
National IPR Policy and Innovation
18 July, 2016, Reji K. Joseph
This article seeks to analyse critically the relationship between innovation and IPRs with a view to understand the implications of the IPR Policy for India.
India's Collapsing Exports
26 May, 2016, C.P. Chandrasekhar
The downturn in India's export performance, that is much worse than other comparable countries, is a reflection of deeper structural weaknesses in the composition of its exports.
Another Setback for the Tatas
13 April, 2016, C.P. Chandrasekhar
Tata Steel’s decision of closing its steel operations in the UK reflects the pitfalls of Indian companies seeking success abroad rather than fixing problems at home. Tata Steel's decision of closing its steel operations in the UK reflects the pitfalls of Indian companies seeking success abroad rather than fixing problems at home.
On Data and Decision-making
13 April, 2016, C.P. Chandrasekhar & Jayati Ghosh
Wide differences in official data based on series with different base years or from alternative sources lead to questions about their relevance for decision making.
Tata Tried to Turn the Tables on Britain. It Failed
31 March, 2016, Jayati Ghosh
A sense of reversal of colonial roles might have played a role in Tata Steel's acquisition of the British steel giant, but the Indian conglomerate seems to have overreached itself.
Technology and the Future of Work
04 February, 2016, Jayati Ghosh
We need to take a new look at technological change because the kind of technological change that is more disruptive rather than productive is neither inevitable nor that desirable.
A Different Oil Shock
04 February, 2016, C.P. Chandrasekhar
Given the magnitude of the oil price fall, the world economy seems set for a deflationary crisis rather than expansionary deflation.
Privatization: Any method in this madness?
03 February, 2016, C.P. Chandrasekhar
The government signals towards winding down the public sector allowing the private sector to occupy the spaces it has, for long, avoided. But this predatory exercise involves large developmental costs.
Financial Services under WTO: Disciplining governments and freeing business
22 December, 2015, C.P. Chandrasekhar
Services trade negotiations at the World Trade Organization may fail at the Doha Round, only because there has been no progress in agriculture and industrial goods trade.
Capital Goods Conundrum
24 November, 2015, C.P. Chandrasekhar & Jayati Ghosh
While the Government appears to recognise the importance of expanding and strengthening India's capital goods industry, the policy signals it sends seem contrary and confusing.
Great Dream of Prosperity
21 July, 2015, C.P. Chandrasekhar
The emphasis on the latest GDP growth numbers, when the figures from other indicators point to the opposite, may be the government’s only option to show that all is well.
The Bursting of China's Housing Bubble
28 April, 2015, C.P. Chandrasekhar & Jayati Ghosh
The party is over in China's real estate markets, but the policy makers are trying to revive it through financial deregulation and monetary easing that is unlikely to work.
Will the Recent Changes in Labour Laws Usher in 'Acche Din' for the Working Class?
23 April, 2015, Anamitra Roychowdhury
The recent changes in the labour laws are overwhelmingly in favour of the employers and detrimental to the cause of the working class.
Indian Exceptionalism
15 April, 2015, C.P. Chandrasekhar
Official satisfaction with the decision by Moody's to raise India's sovereign rating may be ignoring the possibility that the agency missed an important source of vulnerability.
Questioning India's GDP figures
16 March, 2015, C.P. Chandrasekhar
The "too good to be realistic" growth estimate for India put forward by the CSO has been the result of the changes adopted in the data sources and methods.
Lessons from the Coal Blocks Auction
04 March, 2015, C.P. Chandrasekhar
The outcome of coal block auction suggests that the government could have stuck to expanding public sector coal production without handing the mines over to the private sector.
Ever Expanding Debt Bubbles in China and India
03 March, 2015, C.P. Chandrasekhar & Jayati Ghosh
Even though China appears to have a much higher levels of debt- GDP ratio, India’s debt situation with much lower levels of corporate debt may prove to be more problematic.
Banking on FDI
09 February, 2015, C.P. Chandrasekhar
The government's strategy to attract foreign firms for investing in Indian manufacturing to produce for the export markets abroad may not prove to be all too wise.
Oil: The big 100 per cent story
02 February, 2015, C.P. Chandrasekhar & Jayati Ghosh
In a puzzling development, some financial markets registered a decline in the wake of the recent dramatic fall in oil prices. So, is the oil price fall not all good news?
Make in India
29 December, 2014, Jayati Ghosh
The new ambitious "Make in India" initiative is based largely on bluster, bravado and marketing hype that lacks any clear strategy for proactive trade and industrial policies.
Where's the "Missing Middle" in Indian Industry?
09 December, 2014, C.P. Chandrasekhar & Jayati Ghosh
While the problem of missing middle is taken for granted in the Indian industry, official data reveal that medium sized firms actually dominate in both employment and output.
Recent Changes in Labour Laws: An exploratory note
12 November, 2014, Anamitra Roychowdhury
This article explores the possible implications of amending the Contract Labour Act, 1970 and questions the rationale behind amending the Industrial Disputes Act, 1947.
Factory Wages in India
14 October, 2014, C.P. Chandrasekhar & Jayati Ghosh
The demand for labour market reform is absurd as the wages of the workers account for less than half the total wage and salary bill in the organised industry.
India's High Technology Deficit
05 August, 2014, C.P. Chandrasekhar & Jayati Ghosh
There has been a gradual decline of US and EU dominance over hitech manufacturing, with emerging economies posing a challenge. But, unfortunately, India has lagged far behind.
Contract Workers in Manufacturing
29 April, 2014, C.P. Chandrasekhar & Jayati Ghosh
Contractualisation of work has become a pervasive feature of both public and private sectors in all three major sectors of Indian industry.
A Curious Recession
21 April, 2014, C.P. Chandrasekhar
India's industrial sector seems mired in a recession at a time when foreign capital inflows have been substantial and capital market is exuberant.
The Burden of Corporate Debt
15 April, 2014, C.P. Chandrasekhar & Jayati Ghosh
The corporate profitability in India is on a decline and the rising interest cost, besides the worsening economic environment, seems to underlie this profits squeeze.
Crony Capitalism in the Age of State Capture
10 March, 2014, C.P. Chandrasekhar
The illegal nexus between the state and big business for the benefit of both has strengthened under the neoliberal policy regime in India.
Public Banks and the Burden of Private Infrastructure Investment
21 February, 2014, Jayati Ghosh
The pushing through of private infrastructure projects without due regard to regulatory requirements is unjust, socially disruptive and exposes the economy to financial risks.
The Industrial Growth Conundrum
07 February, 2014, C.P. Chandrasekhar
The variations in manufacturing growth estimates by IIP, NAS and ASI triggered reports of an upward revision in 2011-12 GDP growth estimate, but the reasons are not obvious.
A Reality Check on the Labour Market Flexibility Argument in India
05 February, 2014, Anamitra Roychowdhury
It is wrong to identify labour laws as the major reason for slow growth in employment, since employment protection laws apply only to a subset of the total organised sector.
India's Proposed FTAs with EFTA and the EU: Complicating a myopic policy regime
31 January, 2014, Smitha Francis
India should put on hold the signing of further bilateral and regional trade agreements and strive for a trade policy compatible with a strategic industrial policy.
The Geography of Global Manufacturing
27 January, 2014, C.P. Chandrasekhar
The US's cries on the looming threat from China seem to be just propaganda to pre-empt any challenge to existing imperial power.
Animal Spirits
24 December, 2013, C.P. Chandrasekhar
As GDP growth slows, the government focuses on ways of raising investment in the economy. But evidence from the CSO suggests that the source of the problem may lie elsewhere.
To Pay or Not to Pay: Vodafone tax imbroglio
30 August, 2013, Abhijit Mukhopadhyay
The Vodafone tax case set bad precedent, created panic in the government, induced irrational policy making, and showed the extent of blatant appeasement of foreign investment.
Industrial Downturn
19 August, 2013, C.P. Chandrasekhar
The experience in the automobile sector indicates that the confidence required to keep the growth going has been on a decline.
Foreign Crutches
29 July, 2013, C.P. Chandrasekhar
The government's expectation of earning a huge foreign exchange for India based on which the liberalisation of foreign investment rules was justified, has been belied.
The Business of News in the Age of the Internet
07 May, 2013, C.P. Chandrasekhar
In the context of the digital revolution, the author discusses some possible implications of the impact of the internet on the print business and the directions they point to.
The Public Sector Cash Pile
01 April, 2013, C.P. Chandrasekhar
As India's CPSEs accumulate surpluses, the government continues with its effort to redirect and mop up the balances rather than assist them invest the funds in new capacities.
Signals from the Car Market
20 March, 2013, C.P. Chandrasekhar
Recent downturn in the once rapidly growing passenger car industry points towards the fact that credit-driven growth cannot sustain over a long period of time.
Ruling out Default by Definition
22 February, 2013, C.P. Chandrasekhar
The loan recovery process initiated by Kingfisher Airlines' lenders at a significant haircut may be not the last instance of large losses to be suffered by the banking system.
Burdening Public Banks with Private Losses
30 October, 2012, C.P. Chandrasekhar & Jayati Ghosh
While large bank loans to private investors have been restructured to keep them ‘performing’, the burden of such financing has fallen disproportionately on public sector banks.
Promise Belied
20 October, 2012, C.P. Chandrasekhar
There is little evidence from the RBI’s latest data to suggest that liberalisation’s promise of positive net foreign exchange earnings for the country has borne fruit.
Emerging Dynamics of Global Production Networks and Labour Process: A study from India
12 September, 2012, Praveen Jha & Amit Chakraborty
With cheap labour and a strong supply base, India’s automobile sector has emerged successful in integrating itself into the global production networks. Using case studies from the National Capital Region, this paper seeks to study the nature of changes in the organisation of production and work in the automobile sector – both intra-firm and inter-firm – and their impact on the changing labour processes and issues of managerial control, skill or working conditions. The anatomy of the recent waves of labour unrest there has been studied to investigate its relation with changing labour processes, and to understand the new regime of accumulation from a political economy perspective in terms of the dynamic interaction of capital’s strategy, technology and the agency of labour.
The Allocation of Coal Blocks
03 September, 2012, Prabhat Patnaik
The allocation of captive coal blocks to private parties raises a number of issues, which includes the fact even the auction route does not recoup the entire loss to the exchequer on account of the handing over of exhaustible resources to the private sector. Further, by handing over coal blocks that constitute stocks, the government is not just assuring the private players of flows, it is actually promoting monopoly. This is the larger loss to the nation.
Tweaking Animal Spirits
08 August, 2012, C.P. Chandrasekhar
One element of the emerging policy consensus within India's economic policy establishment involves spurring demand for the private sector by diverting expenditure away from subsidies for the poor to finance investment. Simultaneously, a case is being made for providing more concessions to cajole the private sector into exploiting this opportunity.
Labour Market Regulations and Economic Outcomes: Some capital lessons and minor messages
08 August, 2012, Praveen Jha, Sakti Golder & Swayamsiddha Pandav
This paper provides a survey of the empirical evidence on the relationship between labour market institutions and economic outcomes. Survey of major cross-country empirical constructs that examine linkages between labour regulations and different aspects of economic performance such as employment, growth, etc., shows that the empirical basis for the advocacy of blanket labour market flexibility is rather weak. The paper also highlights some key empirical findings from the organised manufacturing sector in India and postulates some capital lessons and minor messages that emerge from such an exercise.
Engineering Teaching and Research in IITs and its Impact on India
05 July, 2012, Milind Sohoni
The dominant paradigm of research and development (R&D), as it is practised in India's premier engineering institutes, has not only been abstract and lacking in diversity, but has also been too 'international' to incentivise work on our own development problems. Such an inverted incentive structure in the socio-economically important engineering job market has been macroeconomically observable in the faster growth in service sector as compared to manufacturing.
Of Profits and Growth
29 May, 2012, C.P. Chandrasekhar & Jayati Ghosh
The period between 2002-03 and 2008-09 saw India’s economy grow at an unprecedented rate, with manufacturing too witnessing a revival. However, the rate of growth of the manufacturing sector would be reduced due to the effects of the recent developments of reduction and even reversal of foreign capital inflows, the liquidity crunch and the large scale corruption in India.
The Roaring 2000s
11 May, 2012, C.P. Chandrasekhar
The coincidence of the profit and the output booms during the two post-liberalisation booms in India’s organised manufacturing sector since the early 1990s suggests that in periods of rising demand, the organised manufacturing sector in India has been a major beneficiary of reform through a rise in mark up. The complaints of the leaders of this sector are therefore not to be taken too seriously.
Affordable Medicine: A big step forward
27 April, 2012, C.P. Chandrasekhar
The recent judgement by India’s Controller of Patents granting Compulsory License to an Indian pharmaceutical company for the production of a cancer drug, the patent for which is held by German pharmaceuticals and chemicals giant Bayer, is not just historic but path breaking.
The Age of "High" Oil
09 March, 2012, C.P. Chandrasekhar & Jayati Ghosh
The recent spike in the international prices of oil suggests that the recession-induced dip in oil prices may be behind us. Political uncertainty and financial speculation have trapped the world in a regime of high and rising oil prices.
Pills, Patents and Profits
16 November, 2011, C.P. Chandrasekhar
It is widely accepted that regulation and control in India’s pharmaceutical sector had resulted in India ensuring access to cheap medicines for its population. However, liberalisation policies have eroded away much of the benefits. The newly proposed National Pharmaceuticals Pricing Policy, 2011 can do further damage by weakening the current price control regulations.
Employment Shifts after the Global Crisis
04 October, 2011, C.P. Chandrasekhar & Jayati Ghosh
The stagnation of employment in developed countries and apparent recovery in developing countries after the Great Recession of 2008-09 have renewed perceptions of a global shift in employment to the developing world, particularly in manufacturing activities. This article uses the most recent available ILO data to examine the extent to which such a shift is actually occurring.
Policy Inertia, Oil and Inflation
04 August, 2011, C.P. Chandrasekhar
The Union government's reluctance to look for alternate measures to ease oil price rise fuelled by international shocks reflects a policy inertia stemming from its deep faith in the market mechanism. However the state governments and the consumers who have to bear the additional burden of such price hikes are at the receiving end.
Global Oil Prices
13 July, 2011, Jayati Ghosh
Recent price changes in global oil markets are increasingly affected by forces that have more to do with financial speculation and expectations than with current movements in demand and supply. In the current oil price surge, the real gainers are the financial speculators in oil futures markets and the big oil companies.
Gassing the State
29 June, 2011, C.P. Chandrasekhar
Corruption has reached unprecedented levels and constitutes the fundamental problem that India is facing today. It stems from the neoliberal reform that sought to attract private capital into a lucrative and sensitive area such as petroleum.
Revisiting Financial Reform
08 April, 2011, C.P. Chandrasekhar
India is doing away with specialised development banking institutions on the grounds that equity and bond markets would finance industrial development. This is bound to lead to a shortfall in finance for long-term investments, especially for medium and small enterprises. The experience of countries such as Brazil, which has thus far not opted for this trajectory, may be educative.
Whither Industrial Growth?
08 April, 2011, C.P. Chandrasekhar & Jayati Ghosh
The recent deceleration in month-on-month IIP growth rates has given the government cause for concern. One possible argument that explains the medium term industrial growth trends is that the process of unwinding of the fiscal stimulus was not accompanied by any neutralising surge in debt-financed private investment and consumption. However, it is too early to conclude with confidence that this is what is happening.
The Japan-India Comprehensive Economic Partnership Agreement
22 February, 2011, C.P. Chandrasekhar & Jayati Ghosh
There has been much media celebration about the recent signing of the Japan-India Comprehensive Economic Partnership Agreement. This article examines some of the features of the agreement and considers their implications for domestic economic strategies and processes in India.
Mining as Primitive Accumulation
20 July, 2010, C.P. Chandrasekhar
The mining sector is increasingly seen as one in which the worst features of capitalism as a profit machine combine with illegality and corruption to provide a site for primitive accumulation based on plunder and unequal exchange.
FDI and the Balance of Payments in the 2000s
10 March, 2010, C.P. Chandrasekhar & Jayati Ghosh
A major component of the economic reform initiated in the 1990s was, and remains, the liberalisation of regulations relating to the inflow and terms of operation of foreign direct investment (FDI).
Sharing Profits from Gas
18 August, 2009, C.P. Chandrasekhar
The ambivalence in government position in the long-drawn out conflict between RIL and RNRL, on the issue of the pricing of gas, reflects the changed relationship between the state and private capital in India ever since “reform” began. In the new world order the state works to rescue and strengthen private capital, even while it declares that the rest of society including the poor and the marginalised have to learn to deal with a world of market mediated relationships.
Tata Rides the Recession
17 June, 2009, C.P. Chandrasekhar
With the expensive acquisitions of Anglo-Dutch steel major Corus and luxury automobile brands Jaguar and Land Rover in quick succession on the eve of the global financial crisis, the TATA group faced difficulties as the debt level of both the parent and the UK subsidiaries in the group was on a rise. However, it is noteworthy how the TATA group escaped a group-wide crisis by leveraging its brand, the Indian government and the Indian public.
The Industrial Recession: New or Ongoing?
18 November, 2008, C.P. Chandrasekhar & Jayati Ghosh
The industrial slowdown is now accepted as fact by most policy makers and observers of the Indian economy. Yet officials and commentators seem to blame it on external factors: most obviously, the global financial crisis originating in the US economy, the consequent economic slowdown and now recession in the US, the European Union and other developed country markets, and the associated impact upon exports.
Prospect of an Industrial Recession
04 November, 2008, C.P. Chandrasekhar & Jayati Ghosh
Expectations are that India would experience an industrial slowdown triggered by the effects of the financial turmoil on the real economy. The most up to date evidence on the growth of the manufacturing sector is the movement of the Index of Industrial Production (IIP), which is a lead indicator of trends in registered manufacturing.
Employment and the Pattern of Growth
08 October, 2008, C.P. Chandrasekhar & Jayati Ghosh
Estimates made by the National Commission for Enterprises in the Unorganised Sector (NCEUS) provide a much clearer picture of employment in the organized industrial sector than available hitherto.
India's Hitech Lag
08 September, 2008, C.P. Chandrasekhar & Jayati Ghosh
As India's government gloats over its US-brokered entry into the world's nuclear club, it may be sobering to examine the implications of some information collated in the recently released biennial Science and Engineering Indicators report of the National Science Foundation (NSF) of the US.
WTO: One More Failure
07 August, 2008, C.P. Chandrasekhar
On July 29, a meeting of ministerial representatives of a large group of members of the World Trade Organisation ended without result. The meeting itself should not have been held in the first place. It was unscheduled, and was convened to clinch a deal on the modalities that should govern the Doha Round of trade negotiations, even though there was no evidence that members were anywhere near agreement in a number of areas that mattered.
Two Instruments by Name Kalawati and Sasikala
28 July, 2008, R. Ramakumar
One of the most discussed speeches in the debate on the trust motion in the Loksabha was Rahul Gandhi's. Arguing that "energy security is directly related to poverty", Rahul Gandhi pitched in for the deal in the name of two widows from suicide-stricken Vidarbha – Kalawati and Sasikala.
Diamonds and Blood
23 July, 2008, Jayati Ghosh
The new spurt in demand for diamonds among the Indian elite only feeds into the fact that the world diamond trade is substantially based on the most gruesome violence and terror in Africa. This is more reinforced in recent times which is characterised by an even more cynical exploitation and reinforcement by multinational processing and trading companies, of vicious local conflicts in the sub-Saharan region.
The Nuclear Deal and the Priorities of the UPA Government
21 July, 2008, Jayati Ghosh
Two features of the hectic political events of the past two weeks create worries about the nature of the UPA government. The first relates to process, the second to priorities. And both features reinforce the suspicion that this is a government that has lost its way, certainly in relation to its own National Common Minimum Programme, and perhaps even more tellingly, in relation to understanding the needs and aspirations of the people.
The Oil Conundrum
17 July, 2008, C.P. Chandrasekhar
With international oil prices rising rapidly, crossing the $135-a-barrel mark and heading, according to some predictions, towards even $200-a-barrel, the oil economy has become a prime cause of concern for the government.
Recent Growth in West Bengal
12 May, 2008, C.P. Chandrasekhar & Jayati Ghosh
For the greater part of the past three decades, West Bengal has been among the middle ranking states of India, both in terms of per capita income and human development indicators. This has been despite the special feature of the state, that it has been ruled continuously by a Left Front government that has provided political stability and also, particularly in the first two decades, a clear orientation towards improving the conditions of workers and peasants.
The Industrial Upturn
05 November, 2007, C.P. Chandrasekhar
With the Sensex defying all laws of economic gravity, the disconnect between India’s booming financial sector and its real economy has only worsened. Few would argue that the performance of the real economy can explain the recent exuberance in the stock markets. So, this may be a good time to look to the real economy to introduce an element of moderation into assessments of economic performance.
The Novartis Case
08 October, 2007, Jayati Ghosh
At last, some good news! In today’s world, intellectual property disputes only too often are settled in ways that benefit large corporate bodies and harm both smaller producers and consumers by granting monopolies and causing prices to rise.
Land Acquisition, Corporate Capital and Social Justice
03 October, 2007, Ratan Khasnabis
This paper discusses how a massive drive for converting agricultural land to non-agricultural use is taking place in the Third World in the recent phase of globalisation, driven chiefly by corporate capital and often by utilizing the instrument of state power. The first Section of this paper discusses the background of land transfer and the corporatisation of land with special reference to India, followed by a discussion on the nature of justice that the dispossessed receive when land is transferred to the corporate. The role of the state as the mitigator has also been discussed in this paper.
What's 'Made in India'?
14 June, 2007, C.P. Chandrasekhar
Analysis of the changes in the overall composition of India's exports during the years of export recovery does not point to a major contribution by manufacturing to those changes. Therefore, no significant improvement in India's competitive position in manufactured exports is visible. In fact, the global strategies adopted by leading Indian manufacturing firms suggest that the possibility that India would enter higher-end segments with a higher proportion of final value added being generated within its own geographical boundaries, is weakening.
Jobless Growth in Chinese Manufacturing
15 May, 2007, C.P. Chandrasekhar & Jayati Ghosh
China is increasingly seen as the manufacturing powerhouse of the developing world, to which manufacturing jobs from the North are increasingly being transferred. However, the actual evidence on Chinese employment shows a somewhat different recent reality.
Who is Doing the Saving and Investing?
11 May, 2007, C.P. Chandrasekhar & Jayati Ghosh
Since the turn of the century, the Indian economy is widely perceived to be on a rapid growth trajectory that is significantly faster than that of the previous decade. Certainly, the National Accounts Statistics of the CSO show that in the period 1999-2000 to 2006-07, GDP in constant prices increased at an average annual rate of nearly 7 per cent.
Recent Employment Trends in India and China:An Unfortunate Convergence?
05 April, 2007, C.P. Chandrasekhar & Jayati Ghosh
This paper argues that both China and India, despite the similarity of the current international hype about their future economic prospects and also despite their obvious differences, face rather similar economic problems at present with respect to the labour market. In both countries, the strategy of development is delivering relatively high growth without commensurate increases in employment, especially in the organised sector; and the bulk of new employment is in lower productivity activities under uncertain and often oppressive conditions. It is argued that this paradox may be a common result of the similar strategy of economic expansion currently being followed in both countries.
Tata's Gamble: Triumph or Nemesis?
14 February, 2007, C.P. Chandrasekhar
Billed by one financial paper as the first step in a Global Indian Takeover, the acquisition of Anglo-Dutch steel major Corus by the Tata group is as much about upper-crust India's new nationalism as it is about corporate strategy. Tata's victory in the final head-to-head auction against Brazil's Companhia Siderúrgica Nacional (CSN) is undoubtedly a major event in the country's corporate history.
Growth and Employment in Organised Industry
30 January, 2007, C.P. Chandrasekhar & Jayati Ghosh
The rapid growth of output of organised industry is a frequently cited indicator of India's current phase of dynamic growth. Yet such expansion has not been accompanied by employment growth along the lines expected. This paper considers the nature of recent growth in organised industry and the reasons why it has not generated more employment.
The Threat from the Internet
20 January, 2007, C.P. Chandrasekhar
Indian public sector majors BSNL and MTNL have promised to deliver a New Year gift to those subscribing to their internet services. Bandwidth on entry level ADSL broadband connections provided through telephone lines are to be raised from 256 kbps to 2 Mbps at no extra cost to the customer.
Knowledge and the Asian Challenge
05 September, 2006, C.P. Chandrasekhar & Jayati Ghosh
According to official statistics, China continued to grow at a scorching 10.2 per cent during the first quarter of 2006, as compared with the corresponding period of the previous year. India closely followed China's performance, with GDP growing at an estimated 8.4 per cent during financial year 2005-06.
The Need to Protect Petty Production
17 July, 2006, Prabhat Patnaik
This paper argues that in a situation where unemployment is generated through the disappearance of small-scale production, the ''efficiency'' argument in favour of their closure does not stand, even if small-scale units are more inefficient at the micro-level.
Bumps in the Flat World
21 June, 2006, Jayati Ghosh
For quite a while now, we have been told that ''the world is flat''. That globalisation and the dismantling of national regulations have created an international sphere of open competition in which the best - that is, the fittest, the most efficient, the strongest - will survive, independent of nationality, race, creed, etc.
How Large is China's Private Sector?
30 September, 2005, C.P. Chandrasekhar
It is a truism that economic reform in China has meant a substantial expansion in the role of private initiative in economic activity. The dismantling of communes and collectives, the encouragement of foreign investment, the recognition of the private sector initially as a
How is Indian Industry Faring?
21 September, 2004, C.P. Chandrasekhar & Jayati Ghosh
With outsourcing of services emerging the employment issue of the times, the performance of India's services sector is under scrutiny. In a recent article in the Financial Times (September 1, 2004), Stephen Roach, the chief economist of Morgan Stanley declared: ''The impetus that services have given to India's growth has been … impressive.
The Stock Market and the Real Economy
17 May, 2004, Jayati Ghosh
Contrary to what the mainstream media suggests, the latest fall in the Indian stock market in reaction to the uncertainty created by the poll outcome, is not really a matter of serious concern for most Indians. Real investment in the economy depends on many factors other than simply changes in market capitalisation.
The End of Development Finance
17 March, 2004,
Close to two years back, on March 30 2002, the Industrial Credit and Investment Corporation of India (ICICI) was through a reverse merger, integrated with ICICI Bank. That was the beginning of a process that is leading to the demise of development finance in the country.


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