It is time to ask if the panchayati raj model really works for India

We have had three decades of decentralized local governments. Next month will mark the 30th anniversary of panchayati raj, when the 73rd and 74th amendments gave Constitutional status to rural panchayats and urban municipal councils. The conventional wisdom is that panchayati raj is a great idea, the amendments were faulty and while local government has created tens of thousands of local politicians, improvements in local governance itself have been marginal.

We ought to look at English language through another lens

A discussion over the role of the English language in India is a difficult one to have, because it means different things to different people in different places at different times. These include overthrowing residues of the Raj, finding a common language to communicate across massive linguistic diversity, contesting snobbery and condescension towards Indian languages, managing the rural-urban divide, driving a vehicle of social justice and choosing the best medium of instruction in the education system.

A focus on fiscal consolidation. But what next?

This is a draft version of the article published in Prajavani, which is accessible here.

In the upcoming fiscal the Karnataka government seeks to contain the Fiscal Deficit at 2.6% and the liabilities at 24.2% of the Gross State Domestic Product (GSDP). It aims to generate a revenue surplus of Rs 402 crores. All the above are well within the key fiscal and debt norms set under the Karnataka Fiscal Responsibility Act (KFRA), 2002. It is worth noting that the Revenue Deficit (RD) Revised Estimates (RE) for 2022-23 is 40% of the 2022-23 Budget Estimates (BE). It is primarily because of higher-than-expected revenue collection in 2022-23.

Read the full draft here.

A gradual approach on defence spending

Another defence budget zoomed past us this month. Since then, analyses have focused on how defence spending for the coming year departs from the previous one. Some have waved a red flag as defence spending has fallen below 2% of the Gross Domestic Product (GDP) for the first time in many years. On the other hand, the defence ministry’s post-budget statement emphasised a 44% increase in operational spending, which it said will close critical gaps in combat capabilities and equip the forces in terms of ammunition, sustenance of weapons and assets, and military reserves.

The highway to infrastructural success has three clear signposts

Soon after we hit the national highway, my new car began to emit an unsettling beeping sound. I confirmed that the seat belts were on, all doors were securely locked, the fuel gauge showed a nearly full tank and even that the fog lights were off, but the beeping would come up every now and then. It was a few minutes later that I realized that the car sounded a beep whenever I crossed 80kmph and the warning notes would intensify at higher speeds. Someone in the back seat Googled this and found that audible speed warnings were mandatory in new cars.

India’s Defence Budget: As Border Tensions With China Simmer, Can Govt Level Up?

As soon as the Union Defence Budget goes live, another cycle of discussions on its size and composition will begin. Analysts will focus on how the expenditures deviate from the previous year. The government on its part, will compare the current spending to what it was in 2014 to impress upon us that it has done enough.

Such discussions are of limited value. The budget is only a financial statement based on the government's priorities. The Defence Budget is then, a result of intra-governmental negotiations that consider India's threat perceptions, national security goals, defence capabilities, and the economic climate. As the government doesn't release any of these upstream ideas as official public documents, the Defence Budget becomes a focal point for understanding India's stance.

Bengaluru needs out-of-pothole thinking

The Karnataka High Court’s proceedings on Bengaluru’s pothole epidemic have raised hopes that the shameful state of our city roads may, at last, get some attention. So appalling is the state of our roads, and so brazen is the authorities’ disregard for the needs of its citizens, that Bengalurians are calling for the prime minister himself to visit their neighbourhoods so that the roads may be properly resurfaced.

The joke is a sign of despair.

Road Ahead for UPI: Free Public Infrastructure or Yet Another Payment Mechanism?

With its widespread adoption, UPI is now here to stay. Regulators must now switch their focus on ensuring fair competition in the digital payments space. The zero-charge framework gives UPI an advantage over other digital payments and a big task for regulators is to determine how it can be phased out going forward. With the market currently dominated by a handful of players at the front-end (GPay, PhonePe, Paytm) and monopolised by NPCI and banks at the back-end, enabling competition in each layer of UPI to tackle this would be the sensible direction to take for UPI to sustain on its own.

Modi govt’s self-reliance goals for Army forcing India to attempt an impossible task

Gujarat’s Gandhinagar was the venue for DefExpo 2022, the 12th edition of the defence exhibition organised by the Ministry of Defence from 18 to 22 October. In keeping with the Atmanirbharta spirit, for the first time, only ‘Indian’ participants were permitted — defined as Indian companies, subsidiaries of foreign original equipment manufacturers, divisions of companies registered in India, and exhibitors having joint ventures with Indian companies. ‘Path to Pride’ was the adopted theme.

भारतीयों के विदेशों में बसने के फ़ायदे कम नहीं

राजस्थान पत्रिका, Sept 30, 2022. We need two look at two categories of Indians in this regard - one, emigrants that have already left and two, Indians who are yet to leave. For those ones that have left, it will be tough to surrender a foreign passport and return back to India. A probable solution would be to actively consider dual citizenship policy, allow ease of investment to NRI/PIO’s and maintain healthy relationships through Indian diplomacy. For the ones who have not yet taken up foreign citizenship, India needs to invest in building social harmony, abundant economic opportunities, and a steady improvement in the quality of life for people from diverse backgrounds. Our critical focus should be for the people from the second category. This includes medical students who are forced to leave due to the government restrictions leading to smaller intakes in medical courses, and high net worth individuals who choose to migrate because of poor business, tax, and policy environments. Unless we address these fundamental challenges, movies such as Swades might bring tears to our eyes, but will not stop in converting pardesi to swadeshi.

How the TTC Agreement with the EU can help India shape Global Tech Ecosystems

Earlier this year, Prime Minister Narendra Modi met with the European Union President Ursula von der Leyen and announced the setting up of the India-EU Trade and Technology Council (TTC). The joint statement released by the two leaders on the launch of the council described the TTC as a body that was responsible for the “strategic coordination mechanism [that] will allow both partners to tackle challenges at the nexus of trade, trusted technology and security, and thus deepen cooperation in these fields between the EU and India”. Since the official press release of the TTC, there have been no more follow-up announcements or movement on the front. This has raised questions about how the Council should function and its role in determining the technology trade agreements between the two entities. What would be the methods of cooperation and the focus areas for India and the EU? These still remain to be answered and delved into.

The misleading outrage over 18-hour work days

Congratulations on finishing college! I am writing to you because I want you to be successful. I care for the happiness it will bring you and your family. I also care because the trajectory of your career will determine India’s growth and development. The stakes are high. A couple of recent incidents prompted this letter. Earlier this month, the chief executive officer (CEO) of Bombay Shaving Company was forced to apologize for advising people in their early twenties to put in 18-hour work days for 4-5 years, and work hard. The social media backlash accusing him of promoting a toxic work culture was so strong that he quit that platform entirely.

Execute Open-Access Mandate for Academia

The United States (US) announced recently that all taxpayer-supported research must be immediately made available to the public at no cost. This will become the norm by the end of 2025. This policy is likely to have worldwide ramifications including India. In the short term, India needs to support its researchers through increased funding and find ways to make Indian publishers globally competitive.

In India, the Dangers of a Single Farming Strategy

Prime Minister (PM) Narendra Modi recently lauded the benefits of natural farming while addressing a natural farming conclave in Surat and indicated that the central government will help expand clusters of natural farms and extend incentives for adoption of the technique. While this is a noble sentiment and there are benefits, India should ensure that the push doesn’t end up becoming an investment in a single farming strategy. Sri Lanka has recently demonstrated how investing in a single solution can result in disastrous results.

Why crisis-hit Pakistan won’t go the Lanka way

There are a few factors that might prevent an all-out collapse like we saw in Sri Lanka. First, Pakistan has been here before. Many times, in fact.  Pakistan has sought financial aid from the UAE, China, and the IMF in 2013, 2016 and 2018.  Second, the international community is wary about a Sri Lanka styled economic and political collapse in a nuclear armed country. The threat of rogue players gaining access to nukes often makes lenders a lot more lenient in issuance of fresh loans and repayment terms. Third, Pakistan has more generous friends. Pakistan received a loan from Saudi Arabia and recently, the UAE government has offered to acquire 10 to 12 per cent equity shares in Pakistan government-owned companies through its sovereign wealth funds.

Untangling the GST mess

Now, in the 5th year of GST, it is the opportune time to look at reforming and refining the system to achieve the original outcomes of a good and simple tax. The first important reform is to broaden the base by minimising the number of exemptions and including petroleum products and electricity in the GST bracket. It can help in reducing petrol prices for end-consumers. Second, there is a need to reduce the number of tax slabs to one or two and gradually eliminate compensation cesses. This will help in reducing problems related to classification of products, disputes, and lobbying. A single rate at 15% with an aim to reduce it to 12% in 10 years should be the aim. Third, ease GST compliance costs for businesses by rationalizing the compliance requirements and having a single identification number.

Rough Calculations on Agnipath’s Pension-Saving Potential show why the Change is Crucial

GoI’s official arguments for Agnipath don’t emphasise public finance implications of the policy. Although the media has discussed the unsustainability of the military pension status quo, the official press release said that the only motivation for the scheme is “attracting young talent from the society who are more in tune with contemporary technological trends and plough back skilled, disciplined and motivated manpower into the society”. But skirting fiscal reasons may have created an impression, at the popular level, that GoI needlessly foisted another disruptive scheme on unsuspecting masses. The reality is quite different.

The US Must Provide Concrete Benefits to IPEF Signatories

At the recently concluded Quad summit in Tokyo, India joined the United States (US)-led Indo-Pacific Economic Framework (IPEF), created to provide an alternative trading arrangement and counter Chinese dominance in the region. While the scope is broad enough to provide an inclusive platform, the ambiguity, vagueness, and the lack of specific agreements can render it toothless.

Rebalance the Rajya Sabha in tandem with Lok Sabha delimitation

India's federal structure is a major design element responsible for independent India’s unity, development and dynamism. Indian federalism differs from American or European federalism in that pre-existing States did not come together and constitute a federation. Even so, Indian federalism is still federalism.

Rejecting charges of centralism, Ambedkar explained that “The States, under our Constitution, are in no way dependent upon the Centre for their legislative or executive authority. The Centre and the States are co-equal in this matter.”

Divide Forex Reserve Into Two Components

The United States (US), European Union (EU) and several countries have imposed a raft of punitive measures on Russia for invading Ukraine. One of the more serious forms of sanctions has been the freezing of the Russian central bank’s assets held in foreign-denominated currencies. When a country earns more foreign exchange (forex) than it spends, it moves the surplus into its reserve account for future contingencies. These reserves are not held in physical currency, but in different forms of financial assets such as gold and debt instruments (bonds and bills) of foreign governments. Countries prefer to invest in currencies that are liquid (easily convertible), widely accepted and trustworthy. The US dollar fits all these criteria.