Category Archives: Capitalism

Capitalism, Countryside, Ecology/Environment

The Majestic Parvati Valley – Paradise Lost: Ujithra Ponniah

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Guest Post by UJITHRA PONNIAH  

In what is known as the heart of Shiva, the majestic Parvati Valley in Himachal Pradesh, a trekker writes about a chance encounter with a Russian man and the impending destruction of the valley. 

My growing alienation with Delhi and city life in general has been buttressed by my frequent, life breathing trips to the mountains. One such getaway took me on a week long trek to the beautiful Parvati valley in the Kullu district of Himachal Pradesh along with a friend. The valley is home to majestic waterfalls tucked away at every turn, lush green forests with the promise of thriving wildlife, unique flowers and a well marked trekking trail. The waterfalls are generous and since we went in the rainy season every shade of green was visible in the forest. The forests are generously sprinkled with their share of marijuana plants that provides a living to many locals and keeps the travellers, especially a large number of Israelis in states of bliss.

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Russian Baba with Prem

The trek to Kheerganga begins from Barshani village, which is the last motorable point. It is a 14km uphill trek through the forest.  The forest is alive and buzzing with life and the Parvati River accompanies you through your walk. Having recuperated from our long trek to Kheerganga and enjoyed the dip in the hot spring and rejuvenating sight of the first layer of snow on the surrounding mountains, we trekked further with the hope of reaching Tunda Bhuj, a place adorned with a wide variety of sub-alpine forests. About half way into our journey it began to get dark and started pouring. The mist was setting in impeding our vision and we were happy to see a couple of tents in the middle of the forest, next to a small brook. When we stopped by we were warmly greeted to join in for a cup of hot tea. This is where we met a foreigner, in his late 60s and his two companions – Prem and Mansingh (both from Nepal). The initial round of niceties revealed that the foreigner was from Russia and I realised this is the ‘Russian baba’, we had heard about in Kheerganga. He had dreadlocks in his hair, a pair of torn shoes, a torn t-shirt and a bundle of beedi that he constantly drew on. He could not hear too well and retained a thick Russian accent. Continue reading The Majestic Parvati Valley – Paradise Lost: Ujithra Ponniah →

Bad ideas, Capitalism, Government

Letter to PM about US-India Bilateral Relations on Intellectual Property

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Dear Prime Minister Modi ji,

We, the undersigned, wish to share with you some of our concerns on India’s position on intellectual property (IP), particularly in the context of bilateral relations between the United States of America and India. We gather from the US-India Joint Statement dated 30 September 2014 that the Indian Government

(a)greeing on the need to foster innovation in a manner that promotes economic growth and job creation…committed to establish an annual high-level Intellectual Property (IP) Working Group with appropriate decision-making and technical-level meetings as part of the Trade Policy Forum. 

The necessity for setting up the joint Indo-US IP Working Group is not entirely clear. As the Department of Industrial Policy & Promotion (DIPP)‘s press release of 3 October 2014 mentions, there is already in operation an Indo-US Trade Policy Forum since 2010. Therefore, we request your Government to kindly make the specific purpose of this joint Working Group publicly known. Continue reading Letter to PM about US-India Bilateral Relations on Intellectual Property →

Capitalism, Government, Politics, Right watch

‘Make in India’ – Modi’s War on the Poor

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For some months now, I have been thinking of someone whom I saw on television during the parliamentary election campaign. The place was Benaras and Modi’s candidature from the seat had just been declared. The television journalist was interviewing a group of clearly poor people, taking their reactions on this new, though expected development. This person, fairly drunk in his Modi-elixir – and perhaps also a bit literally drunk – swaggered as he answered, affirming his support for Modi: Modi bhi chaiwala hai, hum bhi chaiwala hain (Modi is also a tea-seller and I am also a tea-seller). His words reflected the success of the remarkable gamble – that of projecting the new poster boy of corporate capital as a humble tea-seller. It was clear how so many of the poor had bought into this campaign.

What reminded me of this person initially, was that very soon after the election results were out, even before the government was formed, ‘team Modi’ announced a series of measures for the development of Benaras, which included the building of 60 flyovers – ‘to ease traffic congestion’. Mainly meant for the benefit of smooth flow of motorized traffic (rikshas, cycles and pedestrians, after all, have little place in the economy of the flyover), this was the beginning of a plan that would transform this holy city. If the experience of building flyovers anywhere in India is any experience, this would additionally mean mass demolition of settlements of the poor, shops and even entire informal markets – including tea shops that have long been part of life of local communities.

Then the government took office. Within a couple of months, the plan for Varanasi’s upgradation started being drawn up more concretely. Not everything in the proposed subsequent plan (end July 2014) seemed objectionable -not the least the idea to work on a possible mono rail, improvement of the bus network, and a Bus Rapid Transit System (BRTS) like the one in Ahmedabad. Except that this would mean more and more dislocation of the poor and destruction of their livelihoods. We have seen this happen in city after city in India, including in Delhi. Continue reading ‘Make in India’ – Modi’s War on the Poor →

Capitalism, Government

Letter to PM on NREGA from Development Economists

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Dear Prime Minister,

We are writing to express our deep concern about the future of India’s National Rural Employment Guarantee Act (NREGA).

The NREGA was enacted in 2005 with unanimous support from all political parties. It is a far-reaching attempt to bring some much-needed economic security to the lives of millions of people who are on the margin of subsistence.

Despite numerous hurdles, the NREGA has achieved significant results. At a relatively small cost (currently 0.3% of India’s GDP), about 50 million households are getting some employment at NREGA worksites every year. A majority of NREGA workers are women, and close to half are Dalits or Adivasis. A large body of research shows that the NREGA has wide-ranging social benefits, including the creation of productive assets. Continue reading Letter to PM on NREGA from Development Economists →

Capitalism, Government, Right watch

‘Nirmal Gujarat’ – Chronicle of ‘Swachh Bharat’ foretold? Rohit Prajapati

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ROHIT PRAJAPATI, indomitable Vadodara-based activist, invites Narendra Modi to read 2 reports:

‘Report of the Task Force on Waste to Energy (In the context of Integrated MSW Management)’ and

‘Comprehensive Environmental Pollution Index’ (CEPI) Report of 2009, 2011 & 2013 of CPCB’.

These reports reveal the hollowness of Modi’s political sloganeering.

Mr. Modi launched the “Swachh Bharat Mission” on 2 October 2014 and in his message on his website, he says, “A clean India is the best tribute we can pay to Bapu when we celebrate his 150th birth anniversary in 2019. […] Today, I appeal to everyone, particularly political and religious leadership, mayors, sarpanchs and captains of industry to plan and wholeheartedly engage in the task of cleaning your homes, work places, villages, cities and surroundings.”[1]

I want to remind Mr. Modi that earlier as the  Chief Minister of Gujarat,  Mr. Narendra Modi had also launched a similar campaign ‘Nirmal Gujarat – 2007’[2] and made tall claims during that campaign. But reality is best seen in Ahmedabad at illegal solid waste dumping site, the ‘Gyaspur-Pirana Dumping Site’ – a Waste Mountain near Sabarmati River adjacent to the main road.

Mr. Modi should know the basic facts as revealed in the ‘Report of the Task Force on Waste to Energy’ dated 12 May 2014 by the Planning Commission of India. This report states “As per CPCB report 2012 – 13 municipal areas in the country generate 1,33,760 metric tonnes per day of MSW, of which only 91,152 TPD waste is collected and 25,884 TPD treated.”[3]

Continue reading ‘Nirmal Gujarat’ – Chronicle of ‘Swachh Bharat’ foretold? Rohit Prajapati →

Capitalism, Countryside, Ecology/Environment

Vicious cycle of ‘Development’, Displacement and Death

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Gujarat Oustees jump into Narmada Canal 

Kashinathbhau Mohite, Wang Marathwadi dam affected activist, commits suicide 

7th October, Narmada Dist/ Satara /New Delhi: False promises; snatching away of  rights  and even hope; continued mistreatment and harassment at the hands of police and administration; physical, psychological and emotional exploitation- these are not just sporadic instances but a common pattern of grave injustices seen where people have been displaced in the name of ‘development’.

On 6th October, 12 oustees of Sardar Sarovar Dam from Gadher village in Narmada district of Gujarat, jumped into Narmada canal to awaken the administration to their plight of 22 years. The official claim is that they were ‘rehabilitated’ in 1992, however in reality, they still have not been given alternate land and government job to one family member at the time of acquiring their land, which is clear and outright non-compliance of Narmada Water Dispute Tribunal Award 1979, Rehabilitation policy of Government of Gujarat and orders Hon’ble Supreme Court.  After 22 long years, they still await justice and were left with no other option but to resort to this form of protest. On one hand, the Government of Gujarat has always justified Sardar Sarovar Project and glorified the Narmada Canal as the ‘lifeline of Gujarat’, but  on the other, it turns a complete blind eye to its own people of Gujarat who have been so severely affected by  the displacement caused by this very project. Why this apathy? Whose interests are being served? Continue reading Vicious cycle of ‘Development’, Displacement and Death →

Capitalism, Debates

Of Dirt and Cleanliness – Swachh Bharat Abhiyan: Nityanand Jayaraman

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Guest post by NITYANAND JAYARAMAN

108544214-defecation_6The Swachh Bharat Abhiyan (Clean India Campaign) is powerful in its simplicity, and problematic for the same reason. The absence of complexity in the presentation of the campaign, and the inherent contradictions between Modi’s consumerist growth agenda and SwachhBharat’s objectives fuels my skepticism and raises many questions: Which parts of India will be cleaned, which not and why not? What will we do with the wastes we remove? Where will we put it?

If cleanliness is to be the result, dirt would have to be the starting point. In a 1966 classic called “Purity and Danger,” anthropologist Mary Douglas points out that “If we can abstract pathogenicity and hygiene from our notion of dirt, we are left with the old definition of dirt as matter out of place. . .It implies two conditions: a set of ordered relations and a contravention of that order.”

Cleanliness is a loaded word particularly in the Indian context with a notion of caste that is fine-tuned around social and physical interpretations of pure and impure, clean and unclean. Cleanliness, in this context, can be achieved by keeping the clean and the unclean separate.  Continue reading Of Dirt and Cleanliness – Swachh Bharat Abhiyan: Nityanand Jayaraman →

Capitalism, Government

‘Red Carpet’ in Forests: Kamal Nayan Choubey

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Guest post by KAMAL NAYAN CHOUBEY

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View of the Rajapur Mining Project in Jharia from Bokahapadi village

The Narendra Modi led National Democratic Front (NDA) government had promised, even before its inception, to increase investment in the country and lay down the ‘red carpet’ for investors and corporates. The process of fulfilling that promise started with the formation of NDA government and under the leadership of Mr. Prakash Javadekar, the Ministry of Environment and Forest (MoEF) working overtime to ensure huge investment in the forests for the high growth rate of the economy. Within hundred days of the formation of the government MoEF has given environmental clearance to 240 of 325 projects that had been in limbo as the previous government slowed down the process of giving clearances to various projects due to a variety of reasons. The Government has estimated that these clearances would lead to the investment of 200,000 crore rupees and it would help to revive the economy. In this whole process, the Forest Advisory Committee (FAC) decided on the diversion of 7,122 hectares of forest land into revenue land for the various development projects. It is pertinent to ask, has Modi Government followed the procedure established by law while taking these decisions? Are these decisions in consonance with the promise BJP made to the tribal population, of more decentralized power? Could these decisions empower those communities who have been facing historical injustice from both colonial and post-colonial Indian state? Can we say that this kind of development model would work as a long term strategy to control Maoist violence in the most of the tribal dominated forest areas? Continue reading ‘Red Carpet’ in Forests: Kamal Nayan Choubey →

Bad ideas, Capitalism

Indian tea is laden with pesticides: Greenpeace India

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downloadTrouble Brewing – Pesticide Residues in Tea Samples is the result of an investigation carried out by Greenpeace India to understand the situation concerning the use of pesticide usage in tea, which is a quintessential part of Indian culture and critical to the economy. The study has found residues of hazardous chemical pesticides in a majority of samples of the main brands of packaged tea produced and consumed in India. Over half of the samples contained pesticides that are ‘unapproved’ for use in tea cultivation or which were present in excess of recommended limits. The report underscores possible implications for health and the environment, which is both unnecessary and avoidable. While it highlights the fact that the tea industry is stuck on a pesticides treadmill, it suggests that tea companies, which are critical stakeholders in the tea industry, take the necessary steps in moving away from pesticides while adopting a holistic approach is best way forward. Continue reading Indian tea is laden with pesticides: Greenpeace India →

Capitalism, Centre watch, Ecology/Environment, Politics, Right watch

Fast Track to Troubling Times: The Ghadar Alliance

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A promise fulfilled? File photo from scroll.in of what was left in the wake of Modi’s helicopter on the election campaign trail (Image by Ravi Mishra)

The first 100 days of the Modi government points to emergent disaster, says this report by The Ghadar Alliance, a US-based educational/watchdog coalition created by concerned citizens in the wake of the BJP victory. The report points to the Economy, Religious Extremism and Human Rights as areas of biggest concern, and is released on the eve of Modi’s visit to the USA as Prime Minister of India.

The entire report can be downloaded at Fast Track to Troubling Times.

In a press release, The Ghadar Alliance said:

The report is the first independent ‘people’s’ report to be published since Modi came into office, and identifies the economy, religious extremism and human rights as grave areas of concern. Continue reading Fast Track to Troubling Times: The Ghadar Alliance →

Capitalism, Ecology/Environment, Movements

Narmada waters for Coca Cola – really, how much more development can we take?

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cokeindiaFarmers who have for three decades non-violently protested the brutal ousting from their lands for the dam project on the Narmada river have been castigated for being anti-development. The dam would bring water to the thirsty, to the parched agricultural lands around it, we were told. Continue reading Narmada waters for Coca Cola – really, how much more development can we take? →

Capitalism, Centre watch, Culture, Politics, Right watch

The Indian Illusion: Shashank Kela

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Guest post by SHASHANK KELA

Some time ago, I wrote an article seeking to dissect certain myths about Indian politics – and the class that dominates it, despite protestations to the contrary, the middle-class.[1] It is one of the habits of this class to see, and self-pityingly portray itself as victim – of mass politics, reservation policies, the great unwashed, of politicos bent upon appeasing the poor at the cost of sound principles and policies. Its conviction, of course, is that India was great, and on the cusp of becoming so again. This unfading glory is no more to be disputed than the existence of the sun, although opinions differ upon the precise placement of our golden age.

To the rabid fanatics of Hindutva, it resides in an unspecified Vedic time, when Hindus (not Indians) mysteriously succeeded in inventing aeroplanes, dynamite, nuclear weapons, the wheel, zero, and what have you (and mysteriously losing most of these wonderful things). To the Nehruvians, it is the age of Akbar, Ashoka, Harsha, periods of syncreticism and unique tolerance, where people of different faiths lived together peacefully and a composite culture flowered. To them, and to Gandhians, it also resides in the figure of Gandhi and the tradition of practical spirituality. To the fanatics of Islam, it is probably the age of Alauddin Khilji, the reign of Aurangzeb, and so on.

The never-ending debate about India’s pasts contains a diversity of opinions; however, on its future destiny, these begin to converge. The RSS and BJP believe, for example, that India is destined to become a great industrial power. So did Nehru, and assorted Indian Marxists. Indeed, it is an article of faith for the burgeoning middle-class (mostly, but not entirely Hindu) that India can, should and will equal China to become a great power, economic and military (thus leaving Japan and South Korea in the dust). Continue reading The Indian Illusion: Shashank Kela →

Bad ideas, Capitalism, Culture, Empire/ Imperialism

Of Money-in-the-Blood and Blood-Money: Ravi Sinha

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Guest Post by Ravi Sinha

Recently, the Indian Prime Minister had occasion to report to the Japanese on his genealogy and haematic chemistry. Addressing a house-full of corporate honchos in Tokyo he declared, “I am a Gujarati, money is in my blood”. One does not know what percentage of Gujaratis would feel insulted by such a description. It can be asked, perhaps more meaningfully, if great civilizations are created by money-in-the-blood types and one may wonder if Gujarati greats such as Narsi Mehta, Narmad, Govardhan Ram or Gandhi, too, had money flowing in their blood.

There is also some irony in the situation – prime minister of a country with the largest number of world’s poor boasting about ‘money in the blood’ to the richest men of a country that has, in the post-war decades, made more money per capita than any other on the planet. This prime minister can be accused of many things but not of lacking in hubris unencumbered by learning and cultivation.

One may wonder about something else too. The Indians may deserve their new prime minister and all his speeches – on the Independence Day, the Teacher’s Day and on all the other days. After all, they have elected him. But what have the Japanese done to deserve this? What forces them, despite the depth and dignity of their civilization, to lap up such crassness and banality?

The answer can be given in one word – money. Continue reading Of Money-in-the-Blood and Blood-Money: Ravi Sinha →

Bad ideas, Capitalism, Centre watch, Culture, Debates, Excavation, Government, Identities, Left watch, Politics, Right watch, Violence/Conflict

A civil-war is on the doorstep of India: Interview with Kancha Ilaiah by Mahmood Kooria

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This is a guest post by Mahmood Kooria

We are publishing an English translation of an important interview of the intellectual and academic Kancha Ilaiah, conducted by Mahmood Kooria for the Malayalam weekly Mathrubhumi. While what I see as Professor Ilaiah’s underestimation and perhaps misreading of the historic role of the Communists in Indian politics leaves me severely uncomfortable, especially when he exonerates the right from commensurate charges of elitism, his framing of Hindustva and Modi’s appeal within the great stream of caste in the subcontinent is brilliant and thought-provoking, as always. 

Kooria conducted the interview as well as translated it in to English. His introduction is as follows, “At a time when there was no any such discussion, in 2002 Professor Kancha Ilaiah predicted that Narendra Modi will be the prime-ministerial candidate of Baratiya Janata Party. It has come true and now Modi is in the office. At this point, I talked with him at Moulana Azad Urdu University Hyderabad where he chairs the Centre for the Study of Social Exclusion and Inclusive Policy. In the conversation, he talked about the future of Modi government and he predicted that a civil war is going to break out in India if Modi does not cater the needs of backward classes. A Malayalam-version of this interview was published in the Mathrubhumi Illustrated Weekly (August 24, 2014).”

Mahmood Kooria: Ten years ago you wrote that Modi will be the prime ministerial candidate of BJP. What would be your response as your prediction has come true?

Kancha Ilaiah: Well, at that time I was predicting that based on the Left parties’ indifference to understand the caste question. The caste question is not been seriously taken by the Left parties. And, after Mandal, the BJP and the RSS wings started looking at caste-question seriously because when Babari Masjid was demolished they mobilized a lot of backward classes. Though they oppose Mandal reservation, they wanted the backward classes to be part of the Hindu religion. Around 1994, a non-Brahmin called Rajju Bhaiya became the Sarsanghchalak of the RSS. Then he recruited a large number of backward classes, large number of youth, and he promoted the people like Narendra Modi, Uma Bharati at that time. Earlier, the first backward-class chief minister of Uttar Pradesh was a BJP man: Kalyan Sing. He was the chief minister in 1992 when the Babri Masjid was demolished.

The Sangh Pariwar was responding to the backward class demands more. But the Left or the Congress was not responding to the OBCs. The Congress was responding to the Dalits and Muslims. There was upper caste all the time on the top. So, when Narendra Modi became the chief minister and this whole atmosphere was created, I was writing a column in The Hindu. I thought that this seems to be cause/course of India, since the Hindu religion is surviving because of the backward classes. It is inevitable for the Hindutva organizations that they will have to project an OBC for the prime-ministership. But there was resistance from within itself. It is not that the Brahmins have given up the principle of varna-dharma. After that article came and of course after my writing Why I am not a Hindu itself, the backward classes even within RSS seemed to use that material for their advantage. The communists did not use or recognize it. The question of labour and caste which I have been consistently raising, which was also part of their theory, they did not care about. So the Communist Party remained tightly under the control of upper castes.

Continue reading A civil-war is on the doorstep of India: Interview with Kancha Ilaiah by Mahmood Kooria →

Capitalism, Centre watch, Debates, Identities, Law

If Gail Omvedt is Katherine Mayo, then Sugatha Kumari is …? Thoughts on Salman’s Predicaments

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Salman Zalman is a young man from Kerala who has recently been arrested for an alleged act of disrespect towards the Indian National Anthem. As an observer in Kerala, I think young people like him who choose to get involved in public struggles for justice face a number of predicaments that were perhaps not so severe for my generation when we were young. For this reason, I do feel that members of my generation, those of us alive to public issues, need to be more open to the challenges that public-minded younger people face today. Continue reading If Gail Omvedt is Katherine Mayo, then Sugatha Kumari is …? Thoughts on Salman’s Predicaments →

Capitalism, Culture, Debates, Government, Politics, Right watch

Who is guiding Modi’s economic thinking and what is their background?: Aditya Velivelli

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Guest post by ADITYA VELIVELLI

The Modi government’s actions over WTO are a case of much ado about nothing. They have pointedly created a false perception over a non-issue so as to appear pro-poor. Modi said “Do we choose feeding our poor or getting good press world-wide?” Turn this statement around and one gets to see the truth of the matter. The real attempt here is “How to masquerade as pro-poor and get good press in India by using WTO?”

This demonstration of concern for the poor helps Modi’s government in implementing ultra-neoliberal economic policies in the coming months. To understand the game-plan one should only look at the people guiding Modi’s economic thinking. Continue reading Who is guiding Modi’s economic thinking and what is their background?: Aditya Velivelli →

Bad ideas, Capitalism, Language, Mirror Worlds, Sports

How Goldman Sachs Got it Wrong on Football, The World Cup and Economics: Tushar Dhara

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Guest Post by TUSHAR DHARA

In May this year the investment banking powerhouse Goldman Sachs released a report that predicted Brazil would win the FIFA world cup. The prediction relied on statistical modelling and used tools like “Regression Analysis”, “Poisson Distribution”, “Stochastic model” and “Monte Carlo Simulation”. In other words, the methodology is incomprehensible to anyone except those with an advanced degree in Statistics or Econometrics. In hindsight, the prediction looks silly, given the 7-1 score line in the semi-final match between Germany and Brazil. However, the report is a perfect example of the failures of modern economics, particularly the financial voodoo economics pushed by the likes of Goldman Sachs.

When “The World Cup and Economics 2014” was released on May 27 it gained a lot of press publicity globally. The report predicted that Spain would reach the semi-final stage and lose to Argentina, which would lose to Brazil in the final. Goldman’s research division analyzed reams of data, including about 14,000 matches since 1960, national teams’ Elo rankings, average goals scored per team, home country and home continent advantage. To be sure, the report states that the predictions are just “probabilities” of teams advancing. Still the report states, “The most striking aspect of our model is how heavily it favours Brazil to win the World Cup”, and, “the extent of the Brazilian advantage in our model is nevertheless striking.” Continue reading How Goldman Sachs Got it Wrong on Football, The World Cup and Economics: Tushar Dhara →

Capitalism, Government

Lobbying for a tax-free banana republic: Aditya Velivelli

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Guest Post by ADITYA VELIVELLI

POST-BUDGET UPDATE ADDED AT THE END OF THE POST (JULY 12, 2014)

Consider that an individual bought a house in 1992, made a few modifications, added a garden etc. and rented it out for the next 15 years. This would have brought the individual a steady stream of income over that 15 year period.  In 2007, the individual decides to sell the house and it fetches a much larger sum than it was bought for (considering real estate prices went up quite a bit during 1992-2007). The income tax department sends a bill for 20% of the sale price. This is the long term capital gains tax and applies to both residents of India as well as non-residents.

Now consider this.

In 1992 the Hutchison Group of Hong Kong invested in the Indian mobile telecom industry through a joint venture later named Hutchison Essar Ltd or HEL. By 2006, Hutchison expanded its presence into 23 mobile telecom circles.

In 2007, the Hutchison Group’s 67% controlling interest in HEL was indirectly sold to Vodafone for an amount of USD 10.8 billion. This transaction occurred through Vodafone’s purchase of shares in a Cayman Islands (offshore) entity. It was a calculated attempt by Hutchison and Vodafone to avoid paying tax on capital gains. Continue reading Lobbying for a tax-free banana republic: Aditya Velivelli →

Bad ideas, Capitalism, Ecology/Environment, Government, Right watch

An Endless Budget Session, Even Before it Begins: Shambhu Ghatak

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Guest post by SHAMBHU GHATAK

“You can fool some people some times but you can’t fool all the people all the time”

So goes one of the famous lines of Bob Marley’s song that draws upon statement by Lincoln. Perhaps the same can be said about the new BJP government because it seems that this time there will be nothing new left to be presented during the upcoming Union Budget. Most of the things to be presented by the Finance Minister have gradually been placed even before the actual budget could see the light of the day (on 10 July). In fact, the entire stretch since the Government took power can be termed as a long, extended budget session – a session in slow motion.

Just think about the policy decisions announced or showcased by the new Government so far—allowing 100% foreign direct investment (FDI) in defence sector (to boost technology transfer and employment growth, so to speak); reforming environmental clearance (to avoid discrepancies, end red-tapism and ensure transparency) by making the process online; raising import duties on sugar by more than double and extension of existing sugar export subsidy of Rs 3,300 per tonne (to help the sugar mills) till September besides raising the mandatory level for blending cane-based ethanol in petrol from 5% to 10%; allowing hike in price of non-subsidized cooking gas (LPG) by Rs 16.50 per cylinder (which is partly attributed to the crisis situation in Iraq); and raising train fares by 14.2% & freight rates by 6.5% in the month of June prior to the just-presented Rail Budget, among other things. Continue reading An Endless Budget Session, Even Before it Begins: Shambhu Ghatak →

Capitalism, Government

FDI in E-commerce – Under cover of the ‘honeymoon’ period: Aditya Velivelli

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Guest Post by ADITYA VELIVELLI

Although Mr. Modi has said that he has not had the luxury of a ‘honeymoon’ period, recent news headlines say otherwise. For instance PTI carried this headline on June 7: “Modi hailed as new ‘fashion icon’ by American media” and Christian Science Monitor has “Modi 2.0: How India’s new prime minister may have evolved” without waiting to evaluate Mr. Modi’s performance over the coming months.

One should look beyond these headlines to see what the new Government is up to under cover of the ‘honeymoon’ period.

Reuters reported on June 4 that the Modi Government will be allowing FDI in online retail or business to consumer (B2C) e-commerce during the upcoming budget session in July. FDI in e-commerce would mean foreign entities such as Ebay, Amazon and Walmart can start selling their inventories directly, and can have their own supply chains. No comment or analysis has been offered by the news media or the opposition parties so far. Neither was attention paid to the multiple instances of opposition from retailers body CAIT. Continue reading FDI in E-commerce – Under cover of the ‘honeymoon’ period: Aditya Velivelli →

Capitalism, Everyday Life, Government, Law

From Baghdad to Bolangir – Labour Laws in India: Saba Sharma

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Guest post by SABA SHARMA

From the crisis in Iraq, a story is emerging of 40 construction workers in Mosul who have gone missing, some reports claim because they were trying to escape from the city and were captured by militants in the process. Many of these workers, feared kidnapped by ISIS, refused both their employers’ and the Indian government’s help to evacuate, as many have not been paid up to five months’ wages. Another report reveals that a group of 46 nurses from Kerala, working in a hospital in Tikrit, have refused to leave despite an offer from Delhi to help them evacuate. They need the money, as do their families back at home, so they would rather move to a safe zone in Iraq than return. Two nurses in the same hospital, who are on holiday in India, told the BBC that they would return despite the travel advisory issued by India advising citizens not to travel to Iraq. For them, failing to return means defaulting on loans taken to pay recruitment agents.

A few days before, on June 16, the NDA government announced that it was looking at liberalizing labour laws, primarily to make easier the retrenchment of workers. The UPA, and former PM Manmohan Singh in particular, also had labour law reform as an agenda, propelled by constant laments from industry saying ‘obsolete’ labour laws hindering growth and holding back the economy. The Vansundhara Raje government is already amending some state-level acts in Rajasthan to ‘liberate the corporate sector from the shackles of stringent requirements of the laws’, as one report put it.

Continue reading From Baghdad to Bolangir – Labour Laws in India: Saba Sharma →