Thirst for Foreign Capital
Jan27th 2012, C.P. Chandrasekhar
Concerned about the fall in FII investments and the financing of the growing current account deficit, the government has allowed a new group of foreign investors to invest directly in India's equity markets. To the extent that the measure is successful, it would mark a transition towards allowing greater presence of speculative players in the Indian markets.
India's External Sector
Jan11th 2012, C.P. Chandrasekhar and Jayati Ghosh
Even before global currents caused relatively rapid outflows of mobile finance capital from India, the Indian economy was vulnerable on the external front. The recent pattern of growth that has been reliant on capital inflows to generate domestic credit-driven bubbles, rather than trade surpluses is not sustainable and puts the economy at greater risk.
The Lurking Debt Problem
Dec 19th 2011, C.P. Chandrasekhar and Jayati Ghosh
Rising interest rates in the domestic market have been encouraging large firms in the Indian corporate sector to resort to foreign borrowing to finance domestic expenditures. In particular, there has been significant rise in the shares of commercial borrowings and short-term debt in total external debt. This tendency is increasing external vulnerability.

The Challenge of Ensuring Full Employment in the Twenty-first Century
Oct 12th 2011. Jayati Ghosh
The recent economic growth process in India and other parts of the developing world exhibits the inability of even high rates of output growth to generate sufficient opportunities for 'decent work' to meet the needs of the growing labour force. Therefore, there is a clear case for a shift towards wage-led and domestic demand-led growth, particularly in the economies that are large enough to sustain this shift.
International Banks in Emerging Markets
Jun 2nd 2011, C.P. Chandrasekhar and Jayati Ghosh
The presence and growth of foreign banks in emerging markets pose important challenges, both for these countries and the international financial system. Yet the debate on banking re-regulation before and after the crisis focuses largely on the experience of the developed countries, ignoring the implications of developments in the emerging economies.
The Japan-India Comprehensive Economic Partnership Agreement
Feb 22nd 2011, C.P. Chandrasekhar and Jayati Ghosh
There has been much media celebration about the recent signing of the Japan-India Comprehensive Economic Partnership Agreement. This article examines some of the features of the agreement and considers their implications for domestic economic strategies and processes in India.
Surviving Uncertain Times
Dec 1st 2010, C.P. Chandrasekhar and Jayati Ghosh
It is now evident that the world economy is in for another spate of major problems, with recession and stagnation likely to affect the largest economies and altering prospects for growth elsewhere. This article examines recent patterns of the Indian economy’s external engagement, in order to gauge how well equipped it is to face this uncertain future.
National FDI Concepts: Implications for investment negotiations
Jun 4th 2010, Smitha Francis

Free trade agreements and bilateral investment treaties make privileges for and treatment of foreign direct investors legally binding. Thus, apart from the concerns of being able to capture the ''real'' financial and economic contribution of foreign direct investment inflows, FDI definitions are also about protecting the ''rights'' of the so-defined investors in the host country. Keeping this in mind, the article analyses India's current FDI policy and warns that if we define FDI within our national regulatory framework too broadly to allow instruments and flexibility that were earlier resisted, we would have already lost most of the leverage in investment negotiations at the regional and multilateral levels.
The Spectre of Public Debt
Apr 21st 2010, C.P. Chandrasekhar
The sovereign debt crisis of Greece has led to appeals for a reduction in the size of public debt in countries worldwide. Given that increasing taxes and reducing expenditures may not be considered viable options, there would soon be strident calls for disinvestment and privatisation aimed at generating the resources needed for this.
FDI and the Balance of Payments in the 2000s
Mar 10th 2010, C.P. Chandrasekhar and Jayati Ghosh
The most quoted indicator of the success of economic reform is the noticeable rise in the inflow of foreign direct investment during the last decade and a half. However, the available Indian evidence on the performance of foreign direct investment companies suggests that their balance of payments consequences are adverse.
The WTO as Barrier to Financial Regulation
Feb 8th 2010, Jayati Ghosh
Many of the financial regulatory proposals now being considered by developed countries might not be feasible given the legally binding commitments these countries have made under GATS with respect to financial services liberalisation. Such WTO rules may therefore get ignored or GATS may require to be renegotiated, for the necessary financial sector reforms to take place.
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