During COVID-19, larger centralised rice mills have been shut down due to transportation restrictions and lack of diesel. But smaller decentralised rice mills have been running and keeping farmers alive. There are many lessons for rural development from this experience.
Posts tagged as “economic reform”
Ruling parties often review or walk back on public contracts signed by previous administrations. This inconsistency and uncertainty in policy cause problems for investors — both domestic and foreign — who often look for clarity and certainty. It is also hurting India's economic ties with other countries.
Bank managers have no sense of how much money can be productively used by MSME borrowers in the current circumstances and are afraid to lend. If the MSME sector is to be revived, there would have to be transparency and coordination across all stakeholders.
The coronavirus lockdown has reinforced the merits of a basic income scheme. But apart from alleviating distress, the replacement of wasteful subsidies by a basic income scheme would even be financially prudent. It would make economic reform more viable and the public sector more efficient.
The working middle class in the West faced difficulties due to globalisation. But unlike in the West, the rise of right-wing populism in India does not have an economic rationale. Instead, it actively sabotages the economic openness which has worked well for India in the past.
A key driver of unemployment is the chasm between industry and educational institutions. The method of teaching and examination employed across universities in India remains largely primitive and bookish, failing to fulfil the current needs of the industry.