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Our guest for this episode of FED Dialogues, has just authored one of the most highly acclaimed books on India - “Accelerating India’s Development: A State-Led Roadmap For Effective Governance”. In this fascinating one hour conversation, Karthik gives us an introduction to the key messages of his book - the idea that the government can do more by improving the quality of its spending, or the 'pipes of public service delivery' as he calls it, instead of focusing on the share of budget spent on key sectors, and by removing the frictions that plague Indian industry and hamper productivity, rather than offering all kinds of subsidies and incentives to a few marquee investors. Watch the full episode here.
"A tax on imports is a tax on exports!" says FED Director Rahul Ahluwalia. "'Big companies don't go to some place to manufacture because we offer them that we'll raise up tariff walls. In fact, if anything, this reduces the confidence that companies have!' Ahluwalia feels such protectionist measures stem from the mistaken notion that India considers itself to be a big market — which, he says, is not correct from a per capita or spending power parameter," writes K. Sunil Thomas for The Week. Read more.
"Our labour laws are only protecting labour from getting jobs and nothing else," says FED's Operating Partner Piyush Doshi ahead of Budget 2024, as he shares his roadmap for really unlocking labour-intensive manufacturing. FED's Advisory Board member Gurcharan Das, also on the panel, explains that only "two out of three cylinders have fired." The one that really needs to fire today is manufacturing, for India to be able to create jobs for its huge workforce. Watch snippets from the pre-budget panel discussion in this Twitter thread.