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Showing posts from 2014

A perspective on the Impact of FDI on the Retail Sector

By Sibin Sabu, Research Intern Any investment made by a company or entity based in one country, into a company or entity based in another country may be called Foreign Direct Investment. As per OECD (Organization for Economic Co-operation and Development), the foreign investor must own at least 10% or more of the voting stock or ordinary shares of the investee company for it to be considered a FDI. Thus an FDI will give the investor a certain degree of influence over the management of the enterprise. Foreign investment in India is regulated by the RBI and the Foreign Investment Promotion Board (FIPB) under the Department of Economic Affairs, Ministry of Finance. FDI is not permitted in all sectors in India. The government has prohibited FDI in Atomic Energy, Lottery Business, Gambling and Betting, Business of Chit Fund etc. Retail Market in India in 2011 Any person or business selling goods to a consumer may be called a retailer. Therefore, wholesalers and suppliers are not

Forest Resources-State vs. Private Individuals

All innovative measures introduced by the state to tame the rapid degradation of forests in India has not been able to generate positive impacts. These measures could neither halt the pace of degradation nor slow it down significantly to regenerate the lost resources. The results first. The 2011 Forest Report indicates that 21.05 per cent of the total area in India is comprised of forests. Between the period 2009 and 2011, while some of the states have successfully added to its forest cover, the loss of forests coverage in most other outweighed these additions. The overall loss has been estimated at 367 square kilometres in India. Among these states Andhra Pradesh, Manipur and Nagaland lost more than 100 square kilometres, only the state of Punjab gained a 100 square kilometres forest coverage during the same period. In both the north eastern states the decrease is attributed to shortening of shifting cultivation and biotic pressure. In Andhra, which witnessed the largest declin

India’s Middle East policy is due for an overhaul

By Eli Bernstein* It is no secret India is about to turn a corner and enter the world stage. Modi is well positioned to steer India from a developing nation to a nation developed. However, this rise should not be limited only to economic development. India, the world’s largest democracy and soon to be the world’s most populous nation is right to insist its voice should be heard on global affairs. This greater role in the international arena should include permanent membership of the UN Security Council and playing a key role in keeping world peace and the fight against international terrorism. To do this, India must change its foreign policy on a number of fronts. First, India must recognize that affairs in today’s world are increasingly global. India is not an island. India can — and should — become a diplomatic powerhouse as it grows in economic significance. India has a role to play in forming international policy, in the fight against terrorism, and in keeping world p

“It is not your fault consumers!”- Understanding Kerala state’s historical mismanagement of the liquor market.

The liquor policy of the government of Kerala announced last week, takes into account the dramatic rise in consumption in the state. However, it smacks trouble for the years to come. Although much time has passed by for contemplating on the new Abkari policy it still appears that the state government has made a hasty decision to implement complete prohibition in Kerala over the next decade. As a prelude, bars will shut shop and the retail outlets owned by the government will be reduced in numbers. The decision is not without consideration of certain facts which researchers in the field have often pointed out. A major concern is the possible rise of illicit liquor production as well as smuggling of liquor from outside the state. According to recent media reports the state government is stepping up its vigil to address this concern by strengthening monitoring through its excise department. All appears fine until this point; but certain questions remain which will pose challenges t

Constraint to long-term strategy: Understaffing in the Indian Foreign Service

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By  Padmini Gopal* India’s GDP of US$1.8 trillion [1] and an expected growth rate of 6.4per cent in the year 2015 [2] is a testament to India’s present status as a rising world power. Moreover, India’s present nuclear competence and clout, with almost 90-110 nuclear warheads [3] , makes India’s current status unequivocal. Despite that, India seems to be plagued with ‘interstate rivalries that resemble 19 th century Europe’ [4] along with a myriad of challenges that beset the 21 st century, such as terrorism, cyber security, climate change and maritime piracy. These challenges are only amplified by the uncertainty omnipresent in the international arena, with Pakistan reluctant to assure India of security from future terrorist strikes, China unwilling to let go of its claim over Arunachal Pradesh, and a Sinhalese led Sri Lanka refusing to give legitimacy to the wishes of the Tamils. So is India capable of living up to its title given the uncertain international arena it is

Some Alternatives for an Effective Judicial Environment

Entrepreneurship in traditional legal systems in India are often ‘non-existent’, even if we count the role of law firms or legal consultants, and debarring some very good legal journalism sprouting every now and then. However, from a citizen’s point of view or rather from a consumer’s point of view I just see the concrete in the pillars of justices; from the Supreme Court to lower courts. There was an emerging class of people, mostly lawyers who ‘fixed things’, a plumber like activity which, however with increasing leakages. They earned the tag of ‘settlement lawyers’ who over the years got overshadowed by the ‘administrative courts’, and an unhappy litigant who flew out of the country to seek justice. The concept of courts and justice have become stagnant (even some lawyers say that law has become stagnant thanks to the precedents!). There has been no innovation which has bettered the system to the benefit of its users, the litigants. Alternative Dispute Resolutions (ADR) mecha

Critical understanding of the Indian budget 2014-15: The Case of Excise on Cigarettes

Does a tax on cigarettes serve any purpose? For a layman seeing the budget figures of a very high excise rate on cigarettes would mean that it indeed makes the stick costlier and would lead to a reduction in its usage. However, there are some crucial figures on smoking and the usage of tobacco which could paint a picture more nuanced than a layman’s observation. This picture also allows us to critically understand policy measures of the federal government. Here the federal budget 2014-15 provides us with this platform. Does an excise increase matter? Costs, benefits and the illegal. An excise taxes on the stick is likely to have little or no implications in terms of revenue generation (at least to sponsor health expenditure or to provide a source for funding big-budget expenditure) save for the cost burden passed on to the consumers of cigarettes. If that discourages them from smoking then well and good. The reason is simple and has often been cited. The Public Health Foun

What should be the State’s stand vis-à-vis the alcohol industry in India?

The growing debate around liquor consumption in Kerala following the delay in issuing the Abkari policy statement in 2014 provides suitable grounds to discuss several important issues surrounding liquor production and consumption in India. A discussion is essential as liquor is going to last for a long time and a complete prohibition should not be expected in the near-term whatever be the stance of the individual state governments. But it is crucial that we understand what we are talking about before taking one or the other side on drafting a tighter liquor policy. The four southern states of India are special because they are not only the states where the state government directly involve themselves in various aspects of production and distribution, but also the states where consumption has remained relatively high compared to the rest of India. This points towards the fact that state control need not necessarily mean control over consumption of liquor, although that is the most p