The experience of industrialization the world over has underscored the critical role played by access to finance and credit. The East Asian countries have intervened strategically to develop sunrise industries through the directed credit in the Republic of Korea, Malaysia, China, among other East Asian countries. Corporate governance as shaped by regulations such as the Companies Act, the Competition Act, SEBI Act, Insolvency and Bankruptcy Code, and global standards can also help to nudge the business enterprises to pursue inclusive and sustainable business practices enhancing their contribution to overall socio-economic development. ISID’s work under this theme addresses institutional architecture for industrial finance and evolving good practices in corporate governance that can be adapted to India. The past work of ISID has also explored the patterns of mergers and acquisitions and patterns of market power.
ISID has been awarded by the Competition Commission of India an important research project on competition issues in mining sector with focus on Iron Ore. Mineral resources have directly and indirectly played a key role in the evolution and growth of human societies and led to the industrial revolution and modern living conditions. Due to the non-renewable characteristic of minerals and the limited supply of it, the countries with rich minerals are naturally gifted. Nevertheless, the demand for minerals such as iron ore is increasing tremendously due to the huge infrastructure and other development requirements in developing nations. India is self-sufficient in its iron ore production. Iron ore is the key raw material for producing steel, which in turn is a critical input for industrial development. Therefore, any market imperfections in iron ore pass through to other core sectors of the economy as well. The major objective of this study is to identify whether there are any market imperfections prevailing in the iron ore market in India, using a combination of both secondary data and field survey approach. ISID has set up a study team led by Dr Satyaki Roy and Dr Beena Saraswathy to work on the project.
Digital platforms are one of the key developments in facilitating industry 4.0 and are at the center of the multifold benefits the consumers derived through this. With 644 million e-commerce users in 2021, India is the second largest behind China, which indirectly indicates the potential of Indian market and how crucial for the top e-commerce players is to establish their business in India. With the tremendous growth of e-commerce business in India, the Department for Promotion of Industry and Internal Trade (DPIIT) has come up with a draft e-Commerce Policy in February 2019 with an aim to ensure fair competition and a level playing field for all stakeholders in the sector. The draft regulations underline the prominence proposed to be given to the domestic industry and the non-discrimination of small and medium enterprises/sellers in this business. In this context, this study aims to unravel how strong the presence of multisided markets in the Indian e-Commerce.
Research Team: Dr Beena Saraswathi
Status: [Proposal stage].
In the context of growing debate on “stakeholder capitalism” and the emphasis being put on environmental and social governance (ESG), the research programme would review and examine the codes of corporate governance and legislation and guidelines in the global comparative perspective to highlight the gaps and underline the potential good practices that can be adopted by India. It would also examine the M&A guidelines and antitrust regulations that help to regulate the collusive behaviour of enterprises and promote market competition and protect consumer interests. It would also review and propose new standards of corporate disclosures that may foster a move towards more responsible and sustainable business by enhancing transparency and peer pressure on corporations and fostering compliance to global standards.
Research Team: Dr Swati Verma and Dr Rajat Panwar.
Status: [Exploratory work started in 2022-23].
The experience of industrialization the world over have underscored the critical role played by access to finance and credit. Both the early industrializers in Europe and the recently industrialized East Asian countries have intervened strategically to develop sunrise industries through the directed credit in the Republic of Korea, Malaysia, and China, among other East Asian countries. In the post-independence period, the Indian government established several financial institutions to support industrial enterprises through term-lending. However, over time the industrial development banks were transformed into universal banks. Therefore, since the turn of the century, industrial credit has been largely catered to by the universal commercial banks in the country besides the capital market. However, the rising incidence of NPAs of the banking sector suggests that all is not well with the present system. Hence, a review of the present system of industrial finance in terms of its adequacy, quality, and inclusiveness is needed to identify any corrective steps to ensure that the Make in India and Aatmanirbhar Bharat programmes are well supported by finance in the desired manner.
Research Team: Prof Nagesh Kumar, Dr Santosh Kumar Das and Gopal Krishna Tadas (Consultant)
Collaborator: NITI Aayog
Status: [Ongoing], Project launched in March 2022; time frame: six months.
The study analysed the performance of the India’s banking sector with focus on non-performing advances (NPAs). It attempted to provide critical insights into the NPA problem by exploring the nature and contributing factors of the current banking crisis in India. It analysed the NPA crisis in context of the changing structure of the India’s banking sector and provided a comparative analysis of the two phases of the NPA crisis in Indian banks and examined the possible impact of NPAs on banks. The study explored the factors responsible for the NPA problem, with emphasis on the role of bank specific factors and the role of operational, governance, and credit approach aspects of banks. Issues of wilful default and corporate performance have also been analysed. Besides, the study critically analysed the current policy of NPA management framework, and suggested an appropriate policy framework for effective NPA management. The research project was sponsored by the ICSSR, under the IMPRESS Scheme. Dr Santosh Kumar Das was the project coordinator.
The study locates financialisation as a process that increasingly mediates transactions in the economy at various levels. Notable is the fact that in a financialised economy, growth of profit seems to move faster than the growth of investment and a trade-off between growth and profitability constraints the decision-making process of an individual firm. It has wider ramifications, giving rise to a puzzle at the macro level, which is that profit making increasingly gets disconnected from the activity of production, as a result of which accumulation occurs without commensurate increase in productive employment. In this context, the study primarily aimed at understanding the nature and extent of financialisation in India. It identified the major macro-level trends and discussed the findings in reference to stylized facts of financialisation relating to advanced countries. Besides the broad trends of the weakening link between growth and investment, financial landscape in India is undergoing change, evincing early signals of growing importance of non-banking financial entities, non-banking activities of banks, increased resource mobilisation through capital markets, and banks’ increased focus on household financing. It then closely dwells on the emerging patterns of financialisation within the corporate sector of India, arguing that growth of profit has been, on an average, higher for financial companies compared to non-financial companies; there has been a decline in the growth rate of investment in plant and machinery although it hardly affected the operating margins of corporate firms, particularly in the manufacturing sector. Furthermore, in the case of advanced countries, decline in aggregate demand caused by a declining share of wages was partially and temporarily mended by debt-financed and wealth-based consumption of the working class that are largely integrated with the financial market. In the case of India, the slowing down of demand caused by a repression of wages together with not so high degree of financialisation of household income was expected to be temporarily displaced through wealth-based and debt-financed consumption of the middle class. In the end, the study analytically put the identified trends in the perspective of globalised finance and discussed how the current trends are driven by the imperatives of global capital. The research project was sponsored by the ICSSR and the final report was submitted in January 2019. Dr. Satyaki Roy was the Principal Researcher.
The Indian financial sector which is primarily bank-based is facing serious challenges on account of growing NPA problem. Despite having several preventive measures in place, the volume of NPAs has gone up substantially in recent years. Growing NPAs, which reflect deterioration of asset quality, is a cause of concern as it can have adverse impact on the stability of the banking system and the economy as well. Stagnated credit growth, coupled with increase in stressed assets has impacted the profitability of the banking sector substantially. While the source of stress in the banking system seems to be coming from the poor performance of the corporate loans, worrying factor continues to be the accumulation of stressed assets by the Public Sector Banks (PSBs). In this backdrop, the study attempted to explore different dimensions of the current phase of NPA problem of Scheduled Commercial Banks. Given the limitations of data and unavailability of any systematic micro level loan default data, the study made an attempt to explore the following aspects: (i) state of NPAs of the Indian SCBs; (ii) impact of rising NPAs on banking performance; (iii) factors responsible for NPAs; and (iv) ways to manage the existing stressed assets and suggest preventive measures to avoid accumulation of stressed assets in future.
The study found that the source of the stress in the banking system is primarily the large corporates. While at a broad sector level the industrial sector is found to be the source of stress for the banking sector in terms of loan default, the analysis shows that NPAs are high in the following sub-sectors: infrastructure; basic metals and metal products; cement and cement products; construction; textiles; mining and quarrying; and transport equipment. The impact of accumulation of stressed assets is evident from the fact that the profitability of the banking sector has gone down substantially.
There can be various factors responsible for the growing NPAs. The roles of three key agencies the lender (banks), borrower (borrowing entities), and the prevailing economic environment have been explored to gain insights into the above problem. While it is difficult to single out any specific reason for the current NPA problem, the analysis has suggested a set of issues or factors that seem to have played a critical role in the above situation.
The phenomenal increase in NPAs and the willful defaults over the last three years raise serious questions on the effectiveness of NPA management and its mechanisms. Given the potential adverse impact that the increasing incidence of NPA might cause, it is crucial that its resolution takes place in a timely manner in order to limit its negative impact on banks and the economy as a whole. Based on the findings, the study has recommended a set of measures that would be useful to address the growing NPA problem in the Indian banking sector. The research project was sponsored by Canara Bank, Bank of India and the Corporation Bank. Dr. Santosh Das and Mr. Pradhyuman Singh Rawat were the Principal Researchers and Final report submitted to the banks in March 2018.
- Research Seminar on Effective Rate of Protection and Inverted Duty Structure, January 27, 2023
- Research Seminar on Drivers of Investment in Indian Manufacturing, December 2, 2022
- CUTS-ISID Policy Roundtable on World Competition Day 2022, December 5, 2022
- Two-day National Conference on WTO, FTAs and Investment Treaties: Implications for Development Policy Space, September 22, 2015
- National Conference on Corporate Sector, Industrialization and Economic Development in India, March 27, 2009
- Public Sector Performance in India and the Ongoing Contestation between Efficiency and Equity, Satyaki Roy, Santosh Kumar Das, WP264, March 2023
- What Explains NPAs in India’s Banks? Assessment of Bank Specific Factors, Santosh Kumar Das, WP235, August 2021
- Financial Risk Protection from Government-Funded Health Insurance Schemes in India, Shailender Kumar, WP215, November 2019
- Intensity of Use of Land in Urban Residential Areas, WP199, August 2017
- Growth and Distribution: Understanding Developmental Regimes in Indian States, WP184, October 2015
- Seaports, Dry ports, Development Corridors: Implications for Regional Development in Globalizing India, WP178, February 2015
- Parental Education and Infant Mortality in India: Understanding the Regional Differences, ISID-PHFI Collaborative Research Programme, WP157, November 2013
- The “Special Category State” Conundrum in Odisha, WP156, October 2013
- Estimation of Private Investment in Manufacturing Sector and Determinants in Indian States, WP148, November 2012
- Regional Disparities in Growth and Human Development in India, Satyaki Roy, WP147, September 2012
- Spatial Organization of Production in India: Contesting Themes and Conflicting Evidence, Satyaki Roy, WP139, April 2011
- Financing for Development, N K Singh, PB #22-02, March 2022
- Skyrocketing Costs of Hosting Olympic Games Belie Expectations of Hosting Cities, Resulting in Asymmetries in the Olympic Movement, M.M.K. Sardana, DN2019/03, June 2019
- An Overview of Geospatial Industry in India, M.M.K. Sardana, DN2018/04, April 2018
- Strategic Competition in South Asia: Gwadar and Chabahar, M.M.K. Sardana, DN2017/01, January 2017
- A Note on Advocacy for Reworking Strategies of Infrastructure Development in India, M.M.K. Sardana, DN2016/05, October 2016
- The Globalisation of Indian Business: Cross-border Mergers and Acquisitions in Indian Manufacturing,, Beena Saraswathy, December 2019, Beena Saraswathy, December 2019
- Indian Multinationals in the World Economy: Implications for Development, Jaya Prakash Pradhan, Bookwell, New Delhi,, , December 2008, December 2008
- Finance and Populism, Santosh Kumar Das, Encyclopedia of New Populism and Responses in the 21st Century, Springer, March 2023
- NPA Resolution and Bad Bank, Santosh Kumar Das, Economic & Political Weekly, Vol. 57, Issue No. 20, May 2022
- Benefitting from Investment Abroad? Evidence from Indian Manufacturing, Isha Chawla, Asia and the Global Economy, 2(1), January 2022
- The Nexus between Financial Inclusion and Economic Development: Comparison of Old and New EU Member Countries, Seenaiah Kale, Ruixian Huanga, Sudharshan Reddy Paramatic, Farhad Taghizadeh-Hesaryd, Economic Analysis and Policy, Volume 69, Pages 1-15, November 2021
- NPAs and profitability in Indian banks: An empirical analysis, Santosh Kumar Das, Khushboo Uppal, Future Business Journal, November 7, 53, November 2021
- Revisiting ‘fictitious capital’ and the autonomy of finance in the circuit of global capital, Satyaki Roy, in Byasdeb Dasgupta, Archita Ghosh, and Bishakha Ghosh (Ed), Neoliberalism in the Emerging Economy of India: The Political Economy of International Trade, Investment and Finance, Routledge, July 2021
- The Impact of Financial Inclusion and Trade Openness on Economic Development in the European Union, Seenaiah Kale, Ruixian Huang, Sudharshan Reddy Paramati, and Farhad Taghizadeh-Hesary, in Sang Chul Park, Chul Ju Kim, Farhad Taghizadeh-Hesary, and Pitchaya Sirivunnabood (Ed), Economic Integration in Asia and Europe: Lessons and Policies, Asian Development Bank Institute., April 2021
- Inter-state Variation in Urban Growth in India: The Issue of Statutory and Census Towns, Surya Tewari, Urban India, Vol. 40, No.2, July–December, pp. 103–117, December 2020
- Land Utilisation in Special Economic Zones in India: A Macro and Micro Scenario, Surya Tewari, Nagarlok: Quarterly Journal of Urban Affairs, Vol. 52, No. 4, October–December, pp. 67–92, October 2020
- Special Economic Zones as a Way Towards Industrialisation: Discussion on Land Acquisition and Utilisation, Ramaa Arun Kumar, in Pranab Ranjan Choudhury and A Narayana (Eds) Land in India: Issues and Debates 2020, NRMC Centre for Land Governance, July 2020
- Book Review- Development Dilemma: Displacement in Meghalaya 1947–2010 by Walter Fernandes et al., NESRC Displacement Studies Series No. 3, Guwahati (India), Atul Sarma , Social Change, Vol. 49, No. 1, pp. 169-71, August 2019
- Zone of Influence of Cities: Random Analysis of Rural Periphery of Mumbai and Bangalore, Surya Tewari, Annals of the National Association of Geographers, India (NAGI), Vol. 39, No. 2, pp. 256–277, August 2019
- Level of Basic Infrastructure in the Slums: A Case Study of West Bengal from General to Specific, Surya Tewari, in Vishwa Raj Sharma and Chandrakanta (Eds) Making Cities Resilient, Springer International Publishing, Switzerland, pp. 75–93, July 2019
- Level of Basic Infrastructure in Slums: A Case Study of West Bengal from General to Specific, Surya Tewari, in Vishwa Raj Sharma and Chandrakanta Verma (Eds) Making Cities Resilient, The Urban Book Series, Springer International Publishing, Switzerland, pp. 75-93 , February 2019
- Foreword, Atul Sharma, in T Satyanarayana, Chandan Hazarika, and Dipanjan Kashyap (Eds) Agribusiness Potential of Assam, Indian Society of Agricultural Marketing (IASM), Hyderabad. , September 2018
- Infrastructure and Hierarchy of Urban Centres in Hill State of Uttarakhand, Surya Tewari, H Ramachandran and Arifa Begum , Hill Geographer, Vol. 33, No. 1, pp. 1–10, March 2018
- Intensity of Use of Land in Urban Areas, H Ramachandran, Population Geography, Vol. 39, No. 1-2, pp. 1–10, January 2018
- Populism and Party-Society: Developmental Regimes in Tamil Nadu and West Bengal, Kalaiyarasan A, in R Nagaraj and Sripad Motiram (Eds) Political Economy of Contemporary India, Cambridge University Press, New Delhi, February 2017
- Urbanisation – A Solution to Poverty, H Ramachandran, Social Change, Vol. 44, No. 4, December, pp. 593–603, Delhi, December 2014
- Inter-State Variations in Levels and Growth of Industry: Trends during the Last Two Decades, T S Papola, in Ambar Nath Ghosh and Asim K Karmakar (Eds) Analytical Issues in Trade Development and Finance: Essays in Honour of Biswajit Chatterjee, Springer India, pp. 273–2937., March 2014
- Regional Disparities in Growth and Human Developmen, Satyaki Roy, in Alternative Economic Survey 2012-13: Neo-liberal Economic Policies ‘‘Gods’ that Failed, Alternative Survey Group, Indian Political Economy Association, Yuva Samvad Prakashan, Delhi., January 2013
- Employment Situation in North Eastern Region of India: Recent Trends and Emerging Challenges, Partha Pratim Sahu, NLI Research Studies Series No. 096/2012, V V Giri National Labour Institute, Noida, October 2012
- Private Investment in ICT Sector of Indian States, Jagannath Mallick, Indian Economic Review, Vol. 47, No. 1, pp. 33–56, January 2012
- Private Investment in India: Regional Patterns and Determinant, Jagannath Mallick, Annals of Regional Science, Springer Publication, Vol. 49, No. 3, January 2012
- Spatial Organisation of Production in India: Contesting Themes and Conflicting Evidence, Satyaki Roy, Journal of Regional Development and Planning, Vol. 1 No. 1, pp. 1–16, February 2011
- Underdevelopment by Design? Undermining Vital Infrastructure in Orissa, Keshab Das , Economic & Political Weekly, Vol. 41, No. 7., February 2006
- Consider transaction tax for climate financing: Experts to G20, Joe Mathew, Nagesh Kumar, Fortune India, April 25, 2023
- A Universal Financial Transaction Tax could generate $650bn a year for climate finance: CUTS International, Nagesh Kumar, APN NEWS, April 25, 2023
- Per capita income doubles since ’14 but uneven distribution a challenge, PTI, Nagesh Kumar, Business Standard, March 5, 2023
- Multiple Economic Crises and the Retreat of Globalisation, Nagesh Kumar, New Business Age, January 9, 2023
- G20 needs to act to curb short-term capital flows and fund development, Nagesh Kumar, The Jakarta Post, October 28, 2021
- G20 Also Needs to Act to Curb Short-Term Capital Flows and Fund Development, Nagesh Kumar, IDN-InDepthNews, October 27, 2021
- Pandemics: The Perils of Agribusiness Profits, Satyaki Roy, The India Forum, February 26, 2021
- No to vaccine nationalism, yes to global cooperation, Reji K. Joseph, The Hindu, February 4, 2021
- Reducing the API Dependence: Have we got the strategy right?, Reji K. Joseph, Express Pharma, November 1, 2020
- Drug pricing is certainly not the issue in growing dependence on China, Reji K. Joseph, Financial Express, August 6, 2020
- A Policy Roadmap to End Farmers’ Distress, Santosh Kumar Das, The Wire, March 20, 2019
- Coverage without care, The Tribune, December 10, 2018
- With Inadequate Health Infrastructure, Can Ayushman Bharat Really Work?, The Wire, November 26, 2018
- Setting a Proper Diet Plan, The Hindu, November 15, 2018
- Health Rivalry: Competition and rankings help states reform, Anjali Tandon, Financial Express, July 28, 2018
- National Health Protection Scheme is simply not sustainable, Financial Express, June 28, 2018