Treatise 2010

Does the epithet “Sone Ki Chidiya” hold true for India still?
Any attempt to capture the history of a nation- its land, its people, its beauty, its glory, its trials, its failings- all in a single word or expression is bound to meet with failure. “Sone ki Chidiya” is no exception. Before pondering into the relevance of this expression in modern times, one must question the very assumptions upon which this expression is based – Because, only when we truly understand the past, can we fairly judge the present. Does the term “Sone ki Chidiya” aptly …

Read Full Article

There’s a raging debate today whether FDI in India drives growth or stunts it. Direct investors, typically, have a longer-term perspective when engaging in a host country. Since FDI causes sharing of risk between the host country and the investing firm, it provides a stronger stimulus to economic growth in host countries than other types of capital inflows. FDI is more than just capital, as it offers access to internationally available technologies and management knowhow⁶…

Read Full Article

The latest movie trade reports suggest the immense success of the movie ‘2012’which is placed in the backdrop of a possible holocaust leading to the end of the world. While the movie is appreciated by one and all globally, it is an irony that a similar impending doomsday is being created by our actions. And hitherto, we all have differing stances about the same. Are we not at the edge of the precipice, and if we are not, are we not sliding fast to be at the tipping point? And the baton of onus keeps changing hands; so does the role of the perpetrator and the defender in this vehement attack on our planet. The protocol, whether unanimous or fragmented, is just another excuse…
Read Full Article

The worldwide media attention received by the recent Copenhagen Climate Summit shows that climate talk has moved beyond mere symbolic rhetoric to assume more serious tones. While many had initially viewed the summit with renewed hope, the disappointing outcome showed how difficult it is to make those who want to maintain their standards of living and those who aspire for the same, see eye to eye. The BASIC (Brazil, South Africa, India and China) group made its stance clear – development and poverty eradication take priority over climate change (United Nations, 2009) despite global pressure. With the environment at jeopardy, isn’t India’s stance myopic? For instant gratification, has India put the future at peril?

Read Full Article

15 COPs, 17 years of climate talks and a new misaligned group formed each year, yet the heat is on and future looks gloomy. Are we awaiting a twister that shall sweep millions out of their homes like dust or build a home that can stand against these winds? India says ‘a brick at a time’.

The past – Rio convention, Kyoto and Bali, the current – Copenhagen or the future – Mexico – the drift between the developed and developing nations on climate continues to widen. During the U.N. climate summit in Bali, a delegate from Papua New Guinea, told the U.S. delegation: “We seek your leadership, but if for some reason you are not willing to lead, leave it to the rest of us.

Read Full Article

We would like to present our argument  that while the metaphor ‘Sone-Ki-Chidiya’ might have been true in the past, it does not hold true for India now. We intend to clarify our stand stating that, while we are proud of India’s wonderful progress since Independence, we only argue that the term ‘Sone-Ki-Chidiya’ doesn’t hold true for India. We have presented our discussion through a series of topics, where we opine that India has a long way to progress as compared to other countries…

Read Full Article

Foreign direct investment (FDI) is now widely perceived as an important resource for expediting the industrial development of developing countries in view of the fact that it flows as a bundle of capital, technology, skills and sometimes even market access. Most of the developing countries, therefore, offer a welcoming attitude to multinational enterprises (MNEs) that are usually associated with FDI. India’s case is a typical in this context. After following a somewhat restrictive policy towards FDI, India liberalized her FDI policy regime considerably since 1991. This liberalization has been accompanied by increasing inflows. The liberalization has also been accompanied by changes in the sectoral composition, sources and entry modes of FDI. The increasing recognition of India’s locational advantages in knowledge-based industries among MNEs has also led to increasing investments by them in software development and in global R&D centres set up in India to exploit these advantages….

Read Full Arti cle

FDI inflows into India during 2009 have crossed Rs. 80,000 crores and this is the highest ever flow into the country in rupee terms. The attractiveness of India for FDI is far from receding and can surely be expected to sustain over the next decade as well.

2008, the year of the greatest recession the world has seen since the Great Depression, has convincingly proved that India’s growth is not purely FDI dependant. India experienced a growth of over 6% during a year when the world economy contracted 5.5% and when there was a net exodus of capital to the tune of almost Rs. 50,000 crores. Despite huge withdrawal of capital to meet commitments in the home country, countries such as the United States saw a contraction in their economy by 3.5% while the United Kingdom is yet to emerge from the recession. On the other hand, the growth rate of India declined by a modest 2-3% and is on track to regain its 9% growth by the next fiscal year, according to recent projections released by the Finance Minister and Ernst & Young.

Read Full Article

Defending the proposition “FDI fuelled growth of India is sustainable”

There is no doubt that the world is moving toward a single global economy, where national economies are becoming more globally integrated and interconnected. The cornerstones of globalization are economic specialization and international exchange. It is this fundamental attribute of globalization which leads us to the natural conclusion that a positive relationship between FDI & growth is not incidental but a part and parcel of the new order of the world economy.

Read Full Story

“…climate change negotiations have become less about fashioning a truly collaborative global response to a planetary challenge and more about safeguarding and promoting competitive economic interests.”
Shyam Saran – India’s special envoy on Climate Change

While prima-facie it appears that it is the west which is playing a high-handed role in deciding the rules of the game on the emissions turf, the emerging economies too have been acting evasively. When the engine of the world’s growth is the emerging economies, it is, perhaps, time they stopped acting as the deprived younger sibling.

Download Treatise Article 3

Throughout history, India has remained at the forefront of evolution, development and growth.  Viewed through glasses tinted with science and mathematics, literature, arts, or trade and commerce, the country seems to represent the fountainhead of knowledge.  Hence the metaphor, “Sone ki Chidiya”.  But in recent times, this metaphor has assumed wider implications.  Do these implications represent an oxymoron of sorts?  Do we have reason to believe that this description holds as true today as it did a few centuries ago?

Download Treatise Article 2

There are many economic models which may be used to characterize and determine the rate of growth of an economy.  The one which projects the golden growth trajectory of India employs Foreign Direct Investment (FDI) as a pivotal factor.  In analyzing this growth model, the question of sustainability needs to be asked.  Such an all-round analysis of this model throws up unexpected answers, with not every answer being as rosy as previously thought.  Is India really heralding the new age of a global shift in economic power?
Download Treatise Article 1