The Indian government’s pursuit of fiscal consolidation in the Union Budget by providing large transfers to the rich, which it calls “tax expenditure”, while trimming subsidies, or expenditures that benefit the poor, is the best example of the ideology of anti-populism.
The new government’s decisiveness in ensuring quick clearances, and incentives for lending, for large infrastructure projects during the honeymoon period will be watched keenly for the benefits it brings to the corporate sector and big private capital even as the rest of India is likely to be left out and not pleased at all.
Becoming another China is not easy as that will involve the reduction of expenditure on food subsidies and other welfare measures.
If India is not to be handed over to big business and a rabidly communal fringe, it is best to keep Narendra Modi out of the Prime Minister’s Office.
A scholarly, well-researched book shows that the much-vaunted “growth” in Gujarat in the last decade has benefited big capital more than the common man.
The U.S. Supreme Court ruling that favours hedge funds in a case relating to Argentina’s debt restructuring agreement with creditors over a decade ago “severely erodes sovereign immunity and may be illegal under other U.S. laws”.
Pfizer’s bid for AstraZeneca is symptomatic of the attempt at global consolidation by Big Pharma as a means to stifle competition or acquire higher-value products. And among their targets are companies in India where 100 per cent FDI is a big attraction.
Two recent cases of debt default bring into focus the rising corporate debt in China, estimated at around $12 trillion in 2013, with most of the loans provided by trust companies that populate the shadow banking sector and account for 30 per cent of credit advanced in 2013.