The Status of Financial Inclusion, Regulation, and Education in India

India's financial inclusion agenda has witnessed a paradigm shift over the last decade, away from an emphasis on credit to a more comprehensive approach toward financial services (e.g., opening bank accounts and offering basic financial products, such as insurance). This paper describes the structure of banking and microfinance institutions in India relevant to the developing model of financial inclusion, as well as relevant regulatory structure and modes of delivery. It explains the current state of financial inclusion, as well as regulatory changes necessary to make the new architecture for inclusion viable, including a critique of some of the recommendations of the Mor Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households. The paper then reviews modes of delivery and the regulatory structure being contemplated or recently introduced. It assesses the suitability objective envisaged as critical for inclusion, associated challenge of revamping consumer protection laws, and imperative of improving financial literacy. The paper also discusses the case of micro, small, and medium-sized enterprises in the given context

India's platform economy and emerging regulatory challenges

The phenomenal rise of the platform economy has reshaped how economies operate across the world. The importance of digital platforms has never been more evident than in combatting the ongoing corona virus (Covid-19) pandemic. Even with the threat of a global recession looming large, technology companies are witnessing a surge in demand for their services. Platforms distinguish themselves from traditional markets by demonstrating speed and scale of innovation and fostering efficient and productive interaction between buyers and sellers. Enterprises using platform-based business models have expanded beyond social media, travel and entertainment to sectors like financial services, healthcare, logistics and transportation. With the objective of building evidence for policy-making in this sector, this study undertakes an in-depth analysis of the impact generated by the platform economy in India, by estimating consumer surplus from the use of platforms, analysing its impact on traditional businesses either by transformation or disruption. The estimated consumer surplus is Rs. 438.75 per individual per month, amounting to a collective annual surplus of Rs. 3620 billion for India. At current exchange rates this would amount to USD 47 billion. The growth of platforms has also been accompanied by global concern against their anticompetitive practices, the spread of fake news and harmful content, political bias, etc. The paper discusses regulatory changes and areas of concern for market competition, labour and employment, fake news and misinformation, consumer protection, counterfeit goods and data privacy in India

A study of the financial health of the telecom sector

India's telecom sector is one of the largest and fastest growing networks across the globe. The increase in subscriptions has been nothing short of dramatic. Increasingly consumers are using phones to decrease transaction costs, access information and become more productive. Data price has fallen, while data consumption per subscriber per month has increased dramatically. While growth has been robust, the financial health of operators has become less rosy especially after the entry of Reliance Jio in the industry. There can be no denying the fact that a strong financial condition of the sector is desirable not only for its own sake, but for the sake of creating a robust platform on which other businesses can participate and thrive. Accordingly, this paper looks at trends across the industry, attempting to take stock of sectoral health through an examination of financial metrics by evaluating profitability and viability on the basis of revenue, cash flows, asset utilization, operating margins, return on equity/ capital employed and degree of leverage for the period 2011-2018. When measured for all operators, the sector appears to have experienced a slowdown in the rate of growth in revenue, especially towards the latter years of our analysis. Addressing regulatory burden and boosting infrastructure investment is important for the industry to remain competitive

Mapping the future of high value manufacturing in India

Indi's stagnating manufacturing sector has become a serious cause of concern for Indian policy makers. Several reasons have been identified for this slowdown, including lack of policy focus, unsupportive external environment, etc. Given the importance of the manufacturing sector and its potential to contribute to growth and employment, corrective measures must be implemented almost immediately to salvage the sector. In this context, the paper analyzes the potential for India to develop its high value manufacturing sector and provides recommendations on measures to achieve this objective. In the absence of extensive literature in this area, the paper begins by conceptualizing a definition of high value manufacturing using two different approaches. Secondary data analysis tells us that high value manufacturing in India exists only in islands. Cross country comparisons with other East Asian economies such as Korea, Japan and China reveal that India has an opportunity to develop a comparative advantage in other sectors including electronics and computer hardware. Using Hausmann's product space analysis, the opportunity set for India is identified. Consequently, using the "density" measure sectors and industries have been ranked on the basis of ease in achieving comparative advantage. The policy recommendations based on the secondary data analysis and case study interviews help us arrive at recommendations on mapping the future of high value manufacturing in India

The G20 and Building Global Governance for “Climate Refugees”

The global governance of displaced and trapped populations, forced migration and refugees is not prepared for the numbers likely to manifest under climate change. The Group of Twenty has a responsibility to prepare, push for reform and initiate annual reviews to enhance humanitarian responses to aid climate mobility. International policy and law build on the false assumption that displaced people and refugees can return to their place of origin when conditions improve, conflicts subside or homes are rebuilt. This cannot hold for many of those affected by climate change. Governance reform is needed to strengthen rights and obligations of peoples and governments in countries of origin, transit and destination, recognizing the special circumstances and needs of “climate refugees” or migrants