1. BREAKING| 'Bulldozer Reminds Of Lawlessness' : Supreme Court Says Properties Can't Be Demolished Merely...  Live Law - Indian Legal News
2. "Officials To Pay From Salary": Top Court Guidelines On 'Bulldozer Justice'  NDTV
3. ‘Heavens won’t fall on authorities if they hold their hands for some period’: SC sets pan India guidelines against bulldozer action  The Financial Express
4. Executive Can't Become Judge, Pronounce Guilt Of Persons & Punish Them By Demolishing Their Properties :...  Live Law - Indian Legal News
5. ‘Officials will pay for demolitions from their salary’: 5 Key SC observations on ‘chilling’ side of ‘bulldozer justice’  Mint

Children's Day, also known as 'Bal Diwas', is celebrated annually on November 14 in India. The day is celebrated to appreciate and acknowledge children as they are the future of the county.

US-based comedian Austin Nasso is going viral online for his hilarious impersonation of US-President-elect Donald Trump during a fictional visit to India.

This new Corporate Social Responsibility (CSR) Practices in India Report 2020 is a must read

Report on Corporate Social Responsibility (CSR) in Indian BFSI sector.

This is the 15th installment of The Rationalist, my column for the Times of India.

It’s election season, and promises are raining down on voters like rose petals on naïve newlyweds. Earlier this week, the Congress party announced a minimum income guarantee for the poor. This Friday, the Modi government released a budget full of sops. As the days go by, the promises will get bolder, and you might feel important that so much attention is being given to you. Well, the joke is on you.

Every election, HL Mencken once said, is “an advance auction sale of stolen goods.” A bunch of competing mafias fight to rule over you for the next five years. You decide who wins, on the basis of who can bribe you better with your own money. This is an absurd situation, which I tried to express in a limerick I wrote for this page a couple of years ago:

POLITICS: A neta who loves currency notes/ Told me what his line of work denotes./ ‘It is kind of funny./ We steal people’s money/And use some of it to buy their votes.’

We’re the dupes here, and we pay far more to keep this circus going than this circus costs. It would be okay if the parties, once they came to power, provided good governance. But voters have given up on that, and now only want patronage and handouts. That leads to one of the biggest problems in Indian politics: We are stuck in an equilibrium where all good politics is bad economics, and vice versa.

For example, the minimum guarantee for the poor is good politics, because the optics are great. It’s basically Garibi Hatao: that slogan made Indira Gandhi a political juggernaut in the 1970s, at the same time that she unleashed a series of economic policies that kept millions of people in garibi for decades longer than they should have been.

This time, the Congress has released no details, and keeping it vague makes sense because I find it hard to see how it can make economic sense. Depending on how they define ‘poor’, how much income they offer and what the cost is, the plan will either be ineffective or unworkable.

The Modi government’s interim budget announced a handout for poor farmers that seemed rather pointless. Given our agricultural distress, offering a poor farmer 500 bucks a month seems almost like mockery.

Such condescending handouts solve nothing. The poor want jobs and opportunities. Those come with growth, which requires structural reforms. Structural reforms don’t sound sexy as election promises. Handouts do.

A classic example is farm loan waivers. We have reached a stage in our politics where every party has to promise them to assuage farmers, who are a strong vote bank everywhere. You can’t blame farmers for wanting them – they are a necessary anaesthetic. But no government has yet made a serious attempt at tackling the root causes of our agricultural crisis.

Why is it that Good Politics in India is always Bad Economics? Let me put forth some possible reasons. One, voters tend to think in zero-sum ways, as if the pie is fixed, and the only way to bring people out of poverty is to redistribute. The truth is that trade is a positive-sum game, and nations can only be lifted out of poverty when the whole pie grows. But this is unintuitive.

Two, Indian politics revolves around identity and patronage. The spoils of power are limited – that is indeed a zero-sum game – so you’re likely to vote for whoever can look after the interests of your in-group rather than care about the economy as a whole.

Three, voters tend to stay uninformed for good reasons, because of what Public Choice economists call Rational Ignorance. A single vote is unlikely to make a difference in an election, so why put in the effort to understand the nuances of economics and governance? Just ask, what is in it for me, and go with whatever seems to be the best answer.

Four, Politicians have a short-term horizon, geared towards winning the next election. A good policy that may take years to play out is unattractive. A policy that will win them votes in the short term is preferable.

Sadly, no Indian party has shown a willingness to aim for the long term. The Congress has produced new Gandhis, but not new ideas. And while the BJP did make some solid promises in 2014, they did not walk that talk, and have proved to be, as Arun Shourie once called them, UPA + Cow. Even the Congress is adopting the cow, in fact, so maybe the BJP will add Temple to that mix?

Benjamin Franklin once said, “Democracy is two wolves and a lamb voting on what to have for lunch.” This election season, my friends, the people of India are on the menu. You have been deveined and deboned, marinated with rhetoric, seasoned with narrative – now enter the oven and vote.

The India Uncut Blog © 2010 Amit Varma. All rights reserved.
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This is the 16th installment of The Rationalist, my column for the Times of India.

Steven Pinker, in his book Enlightenment Now, relates an old Russian joke about two peasants named Boris and Igor. They are both poor. Boris has a goat. Igor does not. One day, Igor is granted a wish by a visiting fairy. What will he wish for?

“I wish,” he says, “that Boris’s goat should die.”

The joke ends there, revealing as much about human nature as about economics. Consider the three things that happen if the fairy grants the wish. One, Boris becomes poorer. Two, Igor stays poor. Three, inequality reduces. Is any of them a good outcome?

I feel exasperated when I hear intellectuals and columnists talking about economic inequality. It is my contention that India’s problem is poverty – and that poverty and inequality are two very different things that often do not coincide.

To illustrate this, I sometimes ask this question: In which of the following countries would you rather be poor: USA or Bangladesh? The obvious answer is USA, where the poor are much better off than the poor of Bangladesh. And yet, while Bangladesh has greater poverty, the USA has higher inequality.

Indeed, take a look at the countries of the world measured by the Gini Index, which is that standard metric used to measure inequality, and you will find that USA, Hong Kong, Singapore and the United Kingdom all have greater inequality than Bangladesh, Liberia, Pakistan and Sierra Leone, which are much poorer. And yet, while the poor of Bangladesh would love to migrate to unequal USA, I don’t hear of too many people wishing to go in the opposite direction.

Indeed, people vote with their feet when it comes to choosing between poverty and inequality. All of human history is a story of migration from rural areas to cities – which have greater inequality.

If poverty and inequality are so different, why do people conflate the two? A key reason is that we tend to think of the world in zero-sum ways. For someone to win, someone else must lose. If the rich get richer, the poor must be getting poorer, and the presence of poverty must be proof of inequality.

But that’s not how the world works. The pie is not fixed. Economic growth is a positive-sum game and leads to an expansion of the pie, and everybody benefits. In absolute terms, the rich get richer, and so do the poor, often enough to come out of poverty. And so, in any growing economy, as poverty reduces, inequality tends to increase. (This is counter-intuitive, I know, so used are we to zero-sum thinking.) This is exactly what has happened in India since we liberalised parts of our economy in 1991.

Most people who complain about inequality in India are using the wrong word, and are really worried about poverty. Put a millionaire in a room with a billionaire, and no one will complain about the inequality in that room. But put a starving beggar in there, and the situation is morally objectionable. It is the poverty that makes it a problem, not the inequality.

You might think that this is just semantics, but words matter. Poverty and inequality are different phenomena with opposite solutions. You can solve for inequality by making everyone equally poor. Or you could solve for it by redistributing from the rich to the poor, as if the pie was fixed. The problem with this, as any economist will tell you, is that there is a trade-off between redistribution and growth. All redistribution comes at the cost of growing the pie – and only growth can solve the problem of poverty in a country like ours.

It has been estimated that in India, for every one percent rise in GDP, two million people come out of poverty. That is a stunning statistic. When millions of Indians don’t have enough money to eat properly or sleep with a roof over their heads, it is our moral imperative to help them rise out of poverty. The policies that will make this possible – allowing free markets, incentivising investment and job creation, removing state oppression – are likely to lead to greater inequality. So what? It is more urgent to make sure that every Indian has enough to fulfil his basic needs – what the philosopher Harry Frankfurt, in his fine book On Inequality, called the Doctrine of Sufficiency.

The elite in their airconditioned drawing rooms, and those who live in rich countries, can follow the fashions of the West and talk compassionately about inequality. India does not have that luxury.

The India Uncut Blog © 2010 Amit Varma. All rights reserved.
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This is the 20th installment of The Rationalist, my column for the Times of India.

Amit Shah’s induction into the union cabinet is such an interesting moment. Even partisans who oppose the BJP, as I do, would admit that Shah is a political genius. Under his leadership, the BJP has become an electoral behemoth in the most complicated political landscape in the world. The big question that now arises is this: can Shah do for India what he did for the BJP?

This raises a perplexing question: in the last five years, as the BJP has flourished, India has languished. And yet, the leadership of both the party and the nation are more or less the same. Then why hasn’t the ability to manage the party translated to governing the country?

I would argue that there are two reasons for this. One, the skills required in those two tasks are different. Two, so are the incentives in play.

Let’s look at the skills first. Managing a party like the BJP is, in some ways, like managing a large multinational company. Shah is a master at top-down planning and micro-management. How he went about winning the 2014 elections, described in detail in Prashant Jha’s book How the BJP Wins, should be a Harvard Business School case study. The book describes how he fixed the BJP’s ground game in Uttar Pradesh, picking teams for 147,000 booths in Uttar Pradesh, monitoring them, and keeping them accountable.

Shah looked at the market segmentation in UP, and hit upon his now famous “60% formula”. He realised he could not deliver the votes of Muslims, Yadavs and Jatavs, who were 40% of the population. So he focussed on wooing the other 60%, including non-Yadav OBCs and non-Jatav Dalits. He carried out versions of these caste reconfigurations across states, and according to Jha, covered “over 5 lakh kilometres” between 2014 and 2017, consolidating market share in every state in this country. He nurtured “a pool of a thousand new OBC and Dalit leaders”, going well beyond the posturing of other parties.

That so many Dalits and OBCs voted for the BJP in 2019 is astonishing. Shah went past Mandal politics, managing to subsume previously antagonistic castes and sub-castes into a broad Hindutva identity. And as the BJP increased its depth, it expanded its breadth as well. What it has done in West Bengal, wiping out the Left and weakening Mamata Banerjee, is jaw-dropping. With hindsight, it may one day seem inevitable, but only a madman could have conceived it, and only a genius could have executed it.

Good man to be Home Minister then, eh? Not quite. A country is not like a large company or even a political party. It is much too complex to be managed from the top down, and a control freak is bound to flounder. The approach needed is very different.

Some tasks of governance, it is true, are tailor-made for efficient managers. Building infrastructure, taking care of roads and power, building toilets (even without an underlying drainage system) and PR campaigns can all be executed by good managers. But the deeper tasks of making an economy flourish require a different approach. They need a light touch, not a heavy hand.

The 20th century is full of cautionary tales that show that economies cannot be centrally planned from the top down. Examples of that ‘fatal conceit’, to use my hero Friedrich Hayek’s term, include the Soviet Union, Mao’s China, and even the lady Modi most reminds me of, Indira Gandhi.

The task of the state, when it comes to the economy, is to administer a strong rule of law, and to make sure it is applied equally. No special favours to cronies or special interest groups. Just unleash the natural creativity of the people, and don’t try to micro-manage.

Sadly, the BJP’s impulse, like that of most governments of the past, is a statist one. India should have a small state that does a few things well. Instead, we have a large state that does many things badly, and acts as a parasite on its people.

As it happens, the few things that we should do well are all right up Shah’s managerial alley. For example, the rule of law is effectively absent in India today, especially for the poor. As Home Minister, Shah could fix this if he applied the same zeal to governing India as he did to growing the BJP. But will he?

And here we come to the question of incentives. What drives Amit Shah: maximising power, or serving the nation? What is good for the country will often coincide with what is good for the party – but not always. When they diverge, which path will Shah choose? So much rests on that.

The India Uncut Blog © 2010 Amit Varma. All rights reserved.
Follow me on Twitter.

India’s 2020 budget continues the process of opening up to overseas investment.

A government bailout for the ailing subsidiary of the telecoms powerhouse has fallen through. 

Figures show 2018 was India’s best year for manufacturing FDI in seven years.

India is one of Australia’s fastest growing tourism markets. Tourism businesses can realise the potential of the Indian market by learning about travellers’ culture and service expectations.

There are strong prospects for Australian sheepmeat exporters, thanks to rising demand and reduced tariffs under Australia’s trade agreement with India.

Australian Hass avocados have received provisional access to the Indian market. New access was granted after Australia demonstrated that its high-quality avocados could meet India’s biosecurity and food import requirements.

Australia’s landmark AI-ECTA trade deal to come into force on 29 December

Coopers’ craft beers are available across India after Austrade helped secure a new nationwide distributor for the brewery.

Taylors Wines has launched in India, ahead of the AI-ECTA entering into force.

Hobart-based fisheries company, Australian Longline, is now exporting Patagonian toothfish to India.

Tassal is exporting to India for the first time, aided by tariff cuts under the Australia-India Economic Cooperation and Trade Agreement.

Secularism, Caste, and Class in Contemporary India Secularism, Caste, and Class in Contemporary India

Pakistani and Indian Journalists at Media Conference: Why Fight Each Other, When We’re All Fighting the Same Issues? Pakistani and Indian Journalists at Media Conference: Why Fight Each Other, When We’re All Fighting the Same Issues?

Bilateral business and financial engagement is growing between India and China, with India taking advantage of China's favorable financing terms.

India has tried to address the concerns of Sri Lankan Tamils through development projects, but now faces a political dilemma with regional consequences.

At upcoming multilateral summits, Prime Minister Narendra Modi has an opportunity to expand India's regional position and economic links, and address issues such as terrorism and a rising China.

In its recent defense technology deal with the U.S., India has laid the groundwork for creating a robust long-term defense industrial base.

Germany has been acting as an international leader in reducing its carbon footprint, and India can learn a lot from the example Germany is setting.

Solar power is now priced competitively with traditional forms of energy, which makes new nuclear power plants financially unviable.

9 reasons to have at least 3 walnuts everyday  The Times of India

1. India's CPI Inflation In October 2024 Jumps To 14-Month High Of 6.2%; IIP Grows 3.1% In September  News18
2. Retail inflation surges to a 14-month high of 6.2% in October  The Times of India
3. Retail inflation jumps to 14-month high of 6.21 per cent, breaches RBI tolerance level  Telegraph India
4. Rising food prices are likely to push back beginning of rate cutting cycle  The Indian Express
5. Rate cut unlikely even in February, inflation to dip January onwards: SBI research  The Economic Times

While India continues to rely heavily on coal, the south Asian economic giant is also aggressively pushing renewable energy production, especially after the costs of renewable energy production have fallen drastically in recent years around the world. But experts say that India—the world’s third largest emitter of greenhouse gases (GHGs)—has to face many headwinds for […]

“Farming is in my blood, and I can’t imagine doing anything else,” said Mahim Mazumder, a farmer from Assam. “Even though the past three to five years have seen drastic changes—with temperatures rising so much that even sitting under a tree no longer offers relief—I will keep farming, even if it only yields a small […]

Bangladesh and India should pursue bilateral economic cooperation to enhance South Asian regional cooperation.

To attract infrastructure investment to meet national goals for providing electricity to consumers, India needs continued macroeconomic stability as well as an improved policy and regulatory environment.

India’s federal power minister on Tuesday asked the states that are away from coal resources to consider setting up nuclear-based power plants, besides identifying and listing the power utilities to meet investments to support growing power demand.

The Indian government in its federal budget this year had proposed to partner with private players to develop small nuclear reactors to increase the amount of electricity from sources that do not produce carbon dioxide emissions.

States should consider setting up nuclear power plants at the sites where coal-based thermal power plants have completed their life, Manohar Lal, the country’s power minister, told states as per a government statement.

India’s stringent nuclear compensation laws have hampered talks with foreign power plant builders such as General Electric GE.N and Westinghouse.

The country, which currently has about 8 gigawatts of nuclear capacity, aims to increase it to 20 GW by 2032.

The minister also asked the states to identify and list their power utilities in the country’s stock exchange to meet increasing investment demand in the power sector as well as improve the transmission system to add more renewable capacity.

India has pledged to achieve a net zero carbon emission target by 2070 and has a target of 500 GW of renewable energy by 2030.

The Pakistan Cricket Board (PCB) said on Tuesday it has asked the sport’s governing body to explain India’s refusal to send a team to Pakistan for the Champions Trophy next year.

The International Cricket Council (ICC) informed the PCB last week that India would not tour Pakistan for the eight-team tournament, leaving the fate of the event hanging in the balance.

Pakistan had previously rejected the option of a hybrid arrangement that would allow India to play their matches at neutral venues, for example in the United Arab Emirates.

“The PCB has responded to last week’s ICC letter seeking clarifications for the Indian Board’s decision not to travel to Pakistan for next year’s Champions Trophy,” Sami-Ul-Hasan told AFP.

Deteriorating political ties have meant the bitter rivals have not played a bilateral cricket series for over a decade — squaring off only in ICC multi-nation events.

Pakistani media reported on Tuesday that the PCB would be unwilling to accept security reasons for India’s refusal to visit.

New Zealand have toured Pakistan three times in the past two years, with England visiting twice and Australia once in the same period.

Pakistan also visited India for last year’s ODI World Cup and the PCB had expected the gesture to be reciprocated for the Champions Trophy.

The Champions Trophy is slated to be played across three venues — Lahore, Rawalpindi and Karachi — from February 19 to March 9 next year.

But a final schedule due to be announced this week has been postponed over the stand-off — which PCB chairman Mohsin Naqvi termed disappointing.

“Almost every country wants the tournament to be played in Pakistan and it will be disappointing if they don’t come,” Naqvi, who is also the interior minister, said last week.

“I don’t think anyone should make this a political matter. We’ll give every team as many facilities as we can.” Naqvi said Pakistan would consider pulling out of events in India as a response.

“Pakistan has shown great gestures to India in the past, and we’d like to say clearly India shouldn’t expect such friendly gestures from us every time”.

India is due to host the women’s ODI World Cup and Asia Cup next year and will co-host the Twenty20 World Cup with Sri Lanka in 2026.

This brief shows how India sparked a digital payments boom and boosted financial inclusion through the introduction of its Unified Payments Interface (UPI) and outlines ways countries in the region can ramp up their own digital transformation.

Earth appears to have less mass beneath a certain part of the Indian Ocean compared with the rest of the planet. Plumes of magma at the location could explain why