india policy & government

Enemy Of The State

Reserve Bank of India Governor Duvvuri Subba Rao is headed in the direction of becoming the enemy of the Indian state.
I've written on numerous occasions that monetary policy in India is excessively tight and risks severely constraining demand and decelerating the Indian economy. India's GDP growth rate has slowed to 4.5% per year in the most recent quarter than ended in December 2012. Headline inflation as measured by the Wholesale Price Index (WPI) which is the equivalent of a Producer Price Index (PPI) has remained stubbornly high but GDP growth has slowed from a 9% per year run rate to a 4.5% run rate.More...

Government Intervention And Black Markets

India recently doubled its import customs duty on gold from 2% to 4%. At the current price of INR 31,000 per 10 grams of gold, the import duty works out to INR 1,240 per 10 grams.

Until 1992 gold imports into India were restricted by the Gold Control Act 1962. In 1992 the act was abolished and free import of gold into the country was allowed with payment of customs duty at INR 250 per 10 grams. Gold imports went up from nothing to 100 tonnes. As the price of gold started increasing, the duty remained fixed and was futher brought down to INR 100 per 10 grams in 2003. More...

Why The President Will Matter In 2014

Pranab Mukherjee was sworn in the 13th President of India today. He was most recently the Finance Minister of India and the number two minister in the Congress Party after the Prime Minister. Mukherjee's eagerness to become the President and the politicking that went into the process was unusual and might appear strange.

In India's Parliamentary system of democracy, members of parliament are all powerful and the Prime Minister elected by majority in parliament is the head of state. The President is considered a rubber stamp whose role is limited to making speeches, maintaining foregin relations, signing bills approved by parliament into law and, at the end of the general election, inviting the largest party to form the government. His or her role is not unlike that of the Queen of England. More...