Tag: Informal economy
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Interview: ‘We have underestimated the extent of India’s jobs crisis. It is far more serious’
and gosh. one more frikking q&a. On Thursday, a political storm boiled over after Business Standard reported that, between 2017-’18, unemployment numbers in India reached a 45-year high. The newspaper based its report on a survey, conducted by the National Sample Survey Organisation, called the Periodic Labour Force Survey that the government had not made public. According to […]
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One year after GST, India’s smaller companies are on the backfoot
On July 1, 2017, India introduced the Goods and Services Tax to replace the patchwork of indirect taxes that existed at the time and to improve tax compliances. As the tax regime completes its first year, Scroll.in reporters interviewed people running a variety of businesses: handicraft-makers in Guwahati, textile manufacturers in Surat and Tirupur, paper-goods […]
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On the six factors which cumulatively added up to India’s unprecedented cash squeeze
India’s current cash crunch is a real enigma. To begin with, there is its sheer unprecedented nature. In all the years since Independence, India has never seen something like it. “We have heard of coin shortages but never a cash shortage,” said MS Sriram, visiting faculty at the Indian Institute of Management-Bangalore’s Centre for Public […]
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15 theories about why India is facing a cash crunch a year and a half after demonetisation
atms are again running dry in india. and theories claiming to explain why are doubling every day. out today, a quick report with my colleague rohan which seeks to separate plausible theories from the disingenuous (or just plain stupid) ones.
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Why small businessmen in Gujarat are quitting industry and turning to financial speculation
Two major trends are playing out in Gujarat’s economy. On one hand, small industrial units are shutting down. This is not a recent development. Micro, small and medium units in the state started getting into trouble about five years ago, well before the central government demonetised high-value currency notes in November and introduced the Goods […]
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Two months in, How is GST affecting Surat’s textile hub?
Three months ago, when the central government was getting ready to roll out the Goods and Services Tax, the textile industrial cluster of Surat, Gujarat, India’s biggest manufacturer of synthetic fabrics, was distinctly nervous. At play were two conflicting views of how the new tax regime would affect India’s predominantly informal business sector. The government […]
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Beyond Surat’s GST strike: New technologies, Chinese imports are causing a churn in textile sector
At one time, the neighbourhood around Surat’s textile markets was noisy. The street resounded with the clacketing of powerlooms – five or six machines in dark, poorly ventilated rooms with split levels. Most of these were family-run businesses. The looms were on the groundfloor with families working by day and sleeping upstairs at night. Now, […]
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In Surat’s textile hub, small businesses are afraid of GST – but big companies are not
Rajesh Mehra is desolate. A big-boned man in his mid-fifties, he is a trader in women’s blouses. Until ten years ago, Mehra used to take orders from garment wholesalers in big cities like Mumbai, Kolkata and Bengaluru, buy the cloth and thread he needed from garment clusters like Silvassa, and get the blouses stitched in […]
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‘Is the pain worth it?’: 50 days after demonetisation, rural South India has a few questions
On November 9, life suddenly came to a standstill in Chikka Tirupathi, Bagalur and Hosur. As in the rest of India, the first day of demonetisation in these towns abutting the Karnataka-Tamil Nadu border was marked by problems in conducting day-to-day trading for small businesses and a frenzied hunt for Rs 100 notes for families. […]
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An update from Patna’s Maroofganj mandi
ten days into #notebandi, patna’s Maroofganj mandi had frozen. As demonetisation enters its second week, traders in Patna’s Maroofganj mandi are seeing something unprecedented. In the last seven days, the supply of new stocks in this wholesale market, which supplies cooking oil, spices, rice, wheat and pulses to shopkeepers across Patna, has plummeted. The supply […]
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Ground report: In Bihar, murmurs of protest break the sullen silence against demonetisation
Banka was the last stop before returning to Patna in this reporter’s travels from North Bihar to South Bihar, to get a sense of how notebandi was impacting the structures of everyday life. The journey had started with Raxaul, on the India-Nepal border, on November 18, exactly 10 days after notebandi was announced. Heading south, […]
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Money is trickling into the banks of Bihar – but is not being distributed evenly
A month after Prime Minister Narendra Modi announced the scrapping of Rs 500 and Rs 1,000 notes on November 8, cash availability is starkly uneven across Bihar. In relatively affluent parts of the capital city of Patna, the long queues outside ATMs seen in the first week of notebandi, when the government invalidated 86% of […]
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Demonetisation: In a hamlet in Bihar, income and expenditure is down, but hopes are up
The last 30 days have not been easy for the people of Bhindu Paimar. The standard demonetisation narrative has played out in this tola (hamlet) in Karjara panchayat in Gaya, Bihar, about 20 km from Gaya city, on the road that leads to the ancient Buddhist university of Nalanda. Earnings have fallen. Most people in […]
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The demonetisation effect on border town Raxaul: Income loss, dependence on Nepalese currency
My second field trip in Bihar took me from Patna to Raxaul in the far north. A couple of days there, and then I began trickling southwards. Bettiah. Gopalganj and then Darbhanga. And then Patna again. I will head further south tomorrow — towards Gaya — before turning northeast towards Nalanda and then straight east […]
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Cauliflower sells for Rs one a kilo in Bihar as demonetisation depresses demand
At first glance, it looks like any other day at the mandi in Bettiah. Trucks stand next to the concrete arch that leads into the fruit and vegetable market in this small town in northern Bihar. Inside the mandi samiti, as the precinct is called, hawkers sit with baskets bursting with vegetables. The shops seem […]
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How four families have survived two weeks of demonetisation
reported for this story. Prime Minister Narendra Modi’s decision to do away with Rs 500 and Rs 1,000 notes has not been good for Guddu Sharma’s family. Sharma, 24, lives with his wife and two sons near Patna’s Boring Road, and runs a men’s salon about 30 minutes away. Since the prime minister’s announcement, he […]
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Demonetisation has left India’s food markets frozen – and the future looks tense
As demonetisation enters its second week, traders in Patna’s Maroofganj mandi are seeing something unprecedented. In the last seven days, the supply of new stocks in this wholesale market, which supplies cooking oil, spices, rice, wheat and pulses to shopkeepers across Patna, has plummeted. The supply of cooking oil, for instance, is down by 80%. […]
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‘All these notes suddenly have no value:’
this field report on Day One of demonetisation. In the borderlands of Chikka Tirupathi and Hosur, the first day of the demonetisation of Rs 500 and Rs 1,000 notes by the Indian government was marked by problems in day-to-day trading for small businesses and a frenzied hunt for Rs 100 notes for families. Shankar, who […]
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These companies are changing the way labour is hired (and fired) in India
Heard of a company called UDS? Like India’s IT companies, it hires workers and sends them to client locations. There’s just one difference: while the IT companies supply white-collar workers to firms across the world, UDS provides blue-collar workers to offices, factories, airports in India. They run assembly lines, do housekeeping, handle packing and loading, […]
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the great rural land grab
For the longest time, the price of farmland in Vadicherla stayed below Rs 20,000 an acre.Ten years ago, that began to change. “In 2003, an acre cost Rs 25,000. By 2006-07, it had climbed to Rs 2 lakhs,” says Byru Veeraiah, sarpanch of this village in Andhra Pradesh’s Mehbubnagar district, “By 2010, an acre cost […]
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Inside the mysterious world of the microfinance agents
this is the draft of a story on microfinance agents that never got published. i could not conclusively prove the existence of these microfinance agents. but it is an interesting read nonetheless, on how the informal economy subverts the formal sector’s best laid plans. take a look. In xx, while auditing the books of an […]
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tihi
(am writing this post in 2014 but retrospectively dating it back to dec 28, 2009. this, as things stand, is the very first set of stories i wrote for the economic times — they appeared three days before i joined the paper. the paper was bringing out an year end issue, and i wrote about […]
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Fixing India’s Mandis
note: this is the first article i wrote on agriculture. years later, after the village stay at tihi, i read this story again and found it embarrassingly technocratic in its outlook. anyway, do take a look. **** Jawaharlal Nehru had once described agriculture as “India’s greatest living industry”. Yet, 60 years after Independence, the country is […]
Fractured/Earth 