Managing Openness for Inclusive Growth in the two Economies of India and the US – Mathew Joseph and Nirupama Soundararajan
Sponsoring Agency: Ministry of Commerce & Industry
Commencement: May 2008
India has benefited from globalization. However, while economic growth has accelerated, there is some concern both in India and the US on the consequences of the opening up, especially on employment and income distribution in each of the two countries. Therefore, the central concern of the policy makers today is how to ensure that benefits from greater openness of the economy are spread more evenly and the constituency supporting reforms and greater openness is strengthened over time. Trade and investment relationship too has not reached a level either country finds satisfactory. Barriers to trade and investment in both countries remain.
For these reasons, the Trade Policy Forum (TPF) was established in 2005 by the two governments. Its purpose was to find ways to resolve trade and investment problems between India and the United States. The Private Sector Advisory Group (PSAG) has been created by the U.S. and Indian Governments to assist the Trade Policy Forum. It is an entity independent of the two governments whose purpose is to provide the TPF with counsel that will help propel closer economic and commercial relations between India and the United States. PSAG India consists of representatives from ICRIER, FICCI, CII and NMCC. Dr. Isher Ahluwalia (Chairperson of PSAG Indian Side) and Dr. Rajiv Kumar are members of the PSAG Team.
In this context, ICRIER has undertaken a study that would focus on the opportunities and challenges of cooperation between private firms in India and the US in selected sectors in accelerating sustained and inclusive economic growth. The study will also analyze factors in Indian economic policy that may be coming in the way ofachieving full benefits from such cooperation. The study will focus on the following areas of:
(a) India-US Cooperation in R & D and Innovation
(b) Indo-US Co-operation in Bilateral Investment
(c) Infrastructure Investment
(d) Trade and Investment Linkages in Manufacturing Sector
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Study on the Express Industry: Impact and Bottleneck Analysis – Dr. Arpita Mukherjee
Sponsoring Agency: Express Industry Council of India
Commencement: July 2008
A well-functioning express delivery services is crucial for the efficient operation of global production and supply chains. As Indian companies are globalising and integrating their supply chains with the international markets, the demand for express delivery services is increasing. The sector is currently growing at a rate of 20-25 percent and is expected to more than double by 2012. The rapid growth of this sector in India has attracted foreign investment. However, the express delivery industry continues to be highly fragmented with most of the companies having regional/local presence. The industry faces various regulatory, infrastructure, trade facilitation related bottlenecks. Improving reach, efficiency, productivity and quality of services is a major concern for this sector today.
This study focuses on the macro concerns of the express delivery industry, identifies critical constraints and recommends policy reforms needed for its rapid and holistic growth. Specifically, the study assesses the current status of the industry in India, examines the inter-linkages with other sectors and evaluates the direct and indirect contributions of the sector to the Indian economy. It also examines the global experience of the express delivery sector highlighting the lessons for India. Through a nation-wide primary survey it analyzes the constraints faced by this sector and suggests measures for enhancing the productivity and efficiency. The study is sponsored by the Express Industry Council of India (EICI).
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Socio Economic Impact of Mobile Telephony in India - Rajat Kathuria and Team
Sponsoring Agency: Vodafone
Commencement: April 2008
When mobile telephones were first launched in India in 1995, no one would have imagined their rapid diffusion in the economy, especially in the last five years. If someone had told the policy makers that India would boast of 500 million mobiles by 2010, they would have ridiculed the optimism and dismissed the claim as being beyond our reach. Not only does this number appear achievable, there is a serious possibility that the target will be surpassed. Previous research has shown the high correlation between telecom infrastructure and GDP, especially in developing countries where mobile phones are the cheaper and sometimes only means of access and connectedness. In India too, mobiles have become the preferred mode of access, and while there is anecdotal evidence on its impact along economic and social dimensions, no rigorous quantifiable impacts are available in this regard. This study will attempt to bridge this gap using secondary data as well as survey based evidence to assess the impact of increasing mobile penetration across rural and urban areas.
In rural areas, the focus will be to assess the impact of mobile phones on agricultural productivity, since about 60% of India ’s population is dependent on agriculture. This study will provide evidence of mobile on farmer’s decisions relating to choice of crops, selling, pesticide use, adoption of new technology and seeds. Comparison of information available through traditional means will enable us to unpick the additional value of mobiles. The social impact will be studied with a focus on urban slums while mobile use in enhancing and strengthening the supply chain for SMEs will be explored through detailed case studies. Finally the study will identify factors that constrain emergence of new and innovative business models using the mobile platform and offer policy recommendations to further exploit the potential of mobile telephony. The study is expected to be completed in early 2009.
Diane Coyle, from Enlightenment economics, who has been associated with similar impact studies of mobile in Africa , visited ICRIER during Aug 19-21, 2008 in order to interact with the research team. Primary data collection for the study has begun, and pilots have been conducted in Allahabad district and Delhi .
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An Evaluation of CGHS, ECHS and Role of Private Healthcare Providers: Issues and Concerns- Ali Mehdi and Sukumar Vellakkal
Sponsoring Agency: Confederation of Indian Industry
Commencement: April 2008
The Planning Commission, in its Mid-Term Appraisal of Tenth Five Year Plan (2002-2007), stated: “It is time to restructure, reform and rejuvenate this contributory health scheme”, suggesting institutionalized public-private-partnerships in the health sector. It also points out that “several reports have drawn attention to low satisfaction levels with Central Government Health Scheme (CGHS), particularly on account of poor emergency services, non-availability of medicines, and inconvenient timings”. To address these problems, private hospitals / diagnostic centres were empanelled in recent years to provide proper health services. However, many empanelled hospitals are unhappy with the terms of reference under the CGHS. Low rates for treatment and huge pending bills are some of the issues because of which some of these hospitals have threatened to stop accepting CGHS patients. The objective of the proposed research is to examine the existing anomalies in the current CGHS and Ex-Servicemen Contributory Health Scheme (ECHS) systems that have resulted in low levels of stakeholder satisfaction and look for effective public-private partnerships for health care provision for government employees. The study will, on the basis of field interviews of patients, doctors and other stakeholders, and after analysing the relevant secondary data, make recommendations for suitable policy changes.
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