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21. A Model Comprehensive MSME Policy for Indian States

Author:
Richard M. Rossow
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies
Abstract:
Small businesses are the job-creating engines of any healthy economy. Having a supportive policy environment can help high-potential businesses accelerate. Creating such an environment is a shared responsibility of both the central government and India’s 28 states. Many state governments in India have piecemeal policies and programs to support micro, small, and medium enterprises (MSMEs). About one-third of India’s states have worked to craft multifaceted and supportive policies and practices to encourage MSME growth. This paper reviews the ideas already enacted in different Indian states, as well as in national and subnational governments around the world. Developing a single comprehensive MSME policy is an effective approach for a state-level government to consider. It allows small firms to find policy incentives and programs in a single place, and perhaps most importantly, it allows a state to directly consider a range of intertwined incentives that can work together. This will maximize the positive impact to small firms that are poised for growth. Facilitating the growth of MSMEs will have a much wider impact on India’s job growth overall. The large multinational manufacturers that India hopes to lure to invest through programs like Make in India require a diverse and efficient network of suppliers. Supporting MSME growth can create a multiplier effect—driving new investment and employment generation by larger firms. The central government has affirmed a 25 percent target of gross domestic product (GDP) for manufacturing, up from around 14 percent today. This white paper provides leading international examples in the promotion of small businesses, while also enumerating best practices from Indian states’ MSME policies. The final section lays out the 30 elements commonly utilized by Indian states to offer targeted assistance to MSMEs as a roadmap for other states that want to provide best-in-class policy interventions.
Topic:
Development, Economics, Business, and Job Creation
Political Geography:
India and Asia

22. Restarting the Post-Pandemic Indian Economy

Author:
Aparna Pande, Eric B. Brown, and Thomas J. Duesterberg
Publication Date:
07-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report is a result of a Takshashila-Hudson Roundtable Series that brought together experts, policymakers, and academics from India and the United States in November and December 2021 to discuss opportunities for the two nation-states to collaborate in a fast-changing global order. This section summarizes key recommendations for policymakers based on deliberations at the Takshashila-Hudson roundtable series Restarting the Post-Pandemic Indian Economy. The recommendations are divided into four themes for India-US Collaboration: Trade, Investments, Technology, and Human Capital Movement.
Topic:
Science and Technology, Immigration, Economy, Investment, Human Capital, Trade, and Supply Chains
Political Geography:
South Asia, India, North America, and United States of America

23. Operationalizing the Quad

Author:
Lisa Curtis, Jacob Stokes, Joshua Fitt, and Andrew J. Adams
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
This paper assesses Quad activities and the progress the group has made toward its stated objective of promoting a free and open Indo-Pacific. It also provides policy recommendations for strengthening Quad cooperation across the six identified priority areas (vaccines, critical and emerging technologies, climate change, infrastructure, space, and cybersecurity) as well as on trade and economics and security and defense.
Topic:
Security, Defense Policy, International Cooperation, Science and Technology, Economy, Trade, and Quad Alliance
Political Geography:
Japan, India, Australia, United States of America, and Indo-Pacific

24. India–East Africa: A Not So Healthy Relationship?

Author:
Isabelle Saint-Mezard and Françoise Nicolas
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Due to historical as well as geographical reasons, India and East Africa have long been close partners. In the recent period however, and even more so since the early 2000s, these ties have tightened as a result of combined efforts by the government of India and its business community. The presence of communities of Indian origin in several East African countries has also acted as a catalyst. East Africa is perceived as a valuable partner both by Indian authorities and by Indian private companies. Although the two types of Indian players may not explicitly coordinate their actions, their interests dovetail nicely in this particular region. The health sector sticks out as one major sector on which Indian actors focus in East Africa. It provides a striking example of the multilayered complementarity between India and East Africa, on the one hand, and between public and private Indian players’ interests on the other. However, India’s activism in the health sector is not necessarily perceived positively by the East African host countries. Despite some technology transfers and efforts by the Indian actors, be they public or private, to promote capacity-building, East African countries find themselves in a situation of dependence as a result of Indian companies exporting and producing drugs, building hospitals, improving hospital management and Information Technology (IT) infrastructure, or digitalizing healthcare. However, the major point of tension pertains to the promotion of medical tourism. Although offshore healthcare comes with many benefits, it is unlikely to be sustainable for the East African economies in the long run. Moreover, the money spent on medical tourism could arguably be used more usefully to develop local medical facilities and competence. The recent developments in the context of the pandemic have made the associated risk very clear. The challenge in the coming years will be for the two parties to find a way to better balance their relationship and set it on firmer ground – in other words, to make it healthier.
Topic:
Foreign Policy, Health, Bilateral Relations, and Partnerships
Political Geography:
Africa, South Asia, and India

25. Digital Southeast Asia:Opportunities for Australia–India cooperation to support the region in the post-Covid-19 context

Author:
Huon Curtis, Bart Hogeveen, Jocelinn Kang, Huong Le Thu, Rajeswari Pillai Rajagopalan, and Trisha Ray
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Covid-19 and the subsequent public-health responses have disrupted social and economic lives across the globe. Fiscal support measures may have alleviated the initial fallout in some places, but one of the bigger shocks has been the accelerated adoption and integration of and reliance on digital technologies. While this is a positive contribution towards digital development, it has also accentuated the already large gap between those able to adopt digital technologies and those without sufficient means to do so. For the many fragile democracies in the Indo-Pacific, this is creating conditions that could undermine democratic resilience. A central question for these democratic governments is how to drive accelerating digital transformation and ICT-enabled growth towards poverty reduction, sustainable economic growth and building social cohesion while maintaining resilience to cybersecurity threats. Southeast Asians are exceptional consumers of online goods and services. The region is also home to a growing number of technology start-ups, and governments are pushing this ‘drive for digital’ through ambitious national strategies. Despite those positives, digital growth within the region and within individual economies is uneven.
Topic:
International Cooperation, Bilateral Relations, COVID-19, and Digital Policy
Political Geography:
India, Australia, and Southeast Asia

26. Shifting Supply Chains from China into India as an Effective Grand Strategy in the Indo-Pacific Region

Author:
Akhil Ramesh
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Between 2016 and 2020, nations of the Quadrilateral Security Dialogue (Quad) became patently aware of the risks posed by an authoritarian state such as China controlling much of global value chains. This realization among leaders of the Quad nations can be attributed to a general rise in populism around the globe—which ignited a debate on globalization—to the COVID-19 pandemic, China’s acts of economic coercion against Australia and aggression against India in the Galwan Valley. To prevent China from weaponizing interdependence, nations of the grouping have launched several supply chain diversification and economic security initiatives such as the Supply Chain Resilience Initiative (SCRI) and Economic Prosperity Network (EPN). While these initiatives are a step in the right direction, a larger reformatory initiative is needed to prevent diversification projects from becoming a flash in the pan. Shifting supply chains out of China and into India has the potential to be that much needed reformative initiative. This exploratory study of the challenges and opportunities associated with shifting supply chains into India tests this hypothesis by examining the domestic political economy in India and the complexities of the US-India relationship. This study observes major impediments to a supply chain diversification project. One, trade protectionism is a common feature among Indian administrations. India’s diverse political landscape has warranted coalition governments, which has prevented administrations from taking reformative action on liberalizing the economy. Two, the US-India relationship historically had ups and downs. The two democracies even came to the brink of war in 1971, and 20 years later, the US unleashed economic sanctions on India for their nuclear tests. A concerted recalibration of the US-India relationship is required to solidify any form of economic partnership, short of an alliance. To summarize, the Indian government should continue liberalizing its economy through the land, labor, and corporate governance reforms. The US should adopt a more conciliatory approach to India’s domestic issues to avoid fissures in the relationship. Subsequently, the US, Australia, and Japan will be able to capitalize on the opportunities the Indian economy and the Indo-Pacific economy at large present for supply chain diversification. These opportunities can be capitalized through creating a trade bloc exclusive for the Quad and establishing a wealth fund to fund investments in the wider region.
Topic:
Security, Economy, Grand Strategy, and Supply Chains
Political Geography:
China, India, Asia, and Indo-Pacific

27. India and the Indo-Pacific Economic Framework

Author:
Surupa Gupta
Publication Date:
07-2022
Content Type:
Special Report
Institution:
East-West Center
Abstract:
Surupa Gupta, Professor of Political Science and International Affairs at University of Mary Washington, explains that "[e]ven though India has emerged as an active and engaged member of the Quad, its decision to join IPEF—a US-led framework for economic cooperation in the Indo Pacific—was not a foregone conclusion. "
Topic:
Economics, Partnerships, and Quad Alliance
Political Geography:
South Asia, India, and Indo-Pacific

28. The Missing Link: Understanding Rental Housing for Urban Poor

Author:
Anindita Mukherjee, Shubhagato Dasgupta, Abhinav Kumar, Aastha Jain, and Isha Khurana
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
More than 30 million urban households in India, including urban poor, depend on the rental housing market for their housing needs, out of which around 70 per cent rely on informal rental arrangements. According to the NSSO 76th round (2017-18), 19 million households, 64 per cent of the total rental housing stock, belong to the economically weaker section. This reaffirms the important role of rental housing in providing housing for urban poor, albeit still remains understudied. This study contributes to the emerging discourse on state of rental housing for urban poor while highlighting the emerging policy direction from the analysis therein. Drawing from primary data from a household survey of 1800 urban poor households that included landlord and tenants across Bhubaneswar, Coimbatore, and Cochin across slum or non-slum low income neighborhoods; the findings reveal poorer housing condition in slums than those living in non-slum areas. It also shows that the households providing rental services to urban poor are also urban poor and they continue to rely on informal rental practices. This further perpetuates the deficient access to basic civic infrastructure both for the renter and rent provider, further marginalizing the renter. These findings suggest that there is an imminent need to recognize urban poor households as a critical supplier of rental housing stock for the urban poor and to develop comprehensive approaches for incentivizing them to improve the quality of living in renting arrangements. It further highlights the need to involve communities to create quasi legal structures for easier and faster dispute resolution, preferably outside the formal legal structure – cost of compliance to the Model Tenancy Act (MTA) may end up exacerbating poverty among the renters. The report further highlights the importance of policy and planning measures including earmarking land for affordable rental housing near and around high growth areas, servicing areas where poor urban tenants live, among others. As the fast-urbanising countries debate over the best ways to provide affordable housing at scale in the global south, providing affordable rental housing near places with economic opportunities is emerging as most crucial for fulfilling the vision of ‘Housing for All’. Affordable rent structure, universal access to safe water, sanitation, and connectivity through public transport have the potential to improve the living conditions and quality of life of urban poor enhancing their economic contribution in city making.
Topic:
Poverty, Urban, Housing, and Rent
Political Geography:
South Asia and India

29. India’s Political Parties

Author:
Rahul Verma, Nishant Ranjan, Satyam Shukla, Vaibhav Parik, Shamik Vatsa, and Melvin Kunjumon
Publication Date:
12-2022
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
A study of democracy is incomplete without a study of one of its most fundamental components—political parties. In India, works on the country’s political parties so far have explored, among other things, the direct and indirect relationship between the nature and type of political parties and the different facets of the state and governance. One such recurring theme is the exploration of the overall structure of federalism i.e relationship between the centre and state governments(Gardner 2013; Jenkins and Roscoe 2014; Borges 2011). The influence of political parties on the level of centralization and decentralization has not only impacted the federal structure of the country but has also influenced voters in choosing national parties over regional players(Chhibber and Kollman 1998). This ability of the national political parties to overall influence state-level politics has majorly impacted the regional autonomy of states(Gardner 2013). The transition of the Indian political system into a dominant party system centred around the BJP in the past decade provokes us to see how the changes in the party system are translated across states in India. Initially, we will consider broad and empirical evidence to study the formation, survival and dissolution or exit of parties in India. Here, we show how and when parties in India are formed, what factors impact their survival and what causes their eventual decline and exit. This section is the product of research conducted on a dataset developed over the course of the year. This dataset profiles all parties in all Indian states for legislative assembly elections conducted between 1962 and 2021inclusive. We first start by looking at periods of high formation and dissolution of political parties and find how many of India’s parties fail to last, ending up exiting the competition after a single election. We subsequently differentiate between the types of parties being formed: are they new and organically arising, or are they the product of splintering and shifting within existing parties? Our research does show that many successful parties are not entirely new and there are a significant number of key parties in states that have links to older national parties. This is especially true for the several parties that split from the INC, or ones that emerged from the breakup of the Janata Parivar of parties. Later in this section, we also look at state-wise trends of entry and exit of parties in any given election, and how new entrants perform in comparison to more established players. The results suggest that except in certain regions, the hold of older parties has increased, specifically post-1989,whilstsignificantchange happened before it. It also goes on to suggest that the polity of India’s states may be far more stable than frequently suggested. In the second part of the report, we see how national and regional parties are changing across states in three broad fields—ideologically, in their support bases and in their mobilization strategies and organizational capabilities. We have approached state-level experts in political parties and elections through an online survey to evaluate the parties in the above-mentioned parameters. Insights available from elite surveys(or expert surveys)conducted in the past decades present a national picture of major players in Indian politics in terms of their presence and organizational strength, but we have little to no insights into regional parties and how national parties organize themselves at the state level.
Topic:
Democracy, Domestic Politics, and Political Parties
Political Geography:
South Asia and India

30. Is a Genocide of Muslims Underway in India?

Author:
Bridge Initiative Team
Publication Date:
10-2022
Content Type:
Special Report
Institution:
The Bridge Initiative, Georgetown University
Abstract:
Over the past decade, India has experienced a dangerous rise in Islamophobia. There are near daily episodes of harassment, public beatings and mob assaults, destruction of property, and lynchings that have created an atmosphere of fear for the country’s 200+ million Muslims. The rise in this bigotry has largely come into being with the election of Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP), a right-wing Hindu nationalist party. Videos of BJP politicians and right-wing Hindu religious leaders calling on Hindus to bear arms and to kill Muslims have become a normal feature in Modi’s India, where the Prime Minister has failed to condemn such rhetoric or speak out against the rising instability and divisions within society. The inaction and appeasement by the judiciary, law enforcement, and senior levels of government has signaled to the followers of Hindutva, a far-right political ideology that advocates for Hindu supremacy, that those in power support their efforts to carry out their mission of making India a Hindu-only nation. With this, the threat of mass atrocities is growing and becoming a dangerous reality. This report examines the situation in India utilizing Gregory Stanton’s 10 stages of genocide, and finds that examples of the first 8 stages of genocide are present in India. Currently, the country is teetering at stage 8 (persecution) with the indicators of stage 9 (extermination) becoming more and more visible. Islamophobia has been central to the BJP and the Hindu nationalist movement, as their goals are reliant on the subordination and dehumanization of Indian Muslims.
Topic:
Genocide, Islamophobia, Narendra Modi, Bharatiya Janata Party (BJP), and Muslims
Political Geography:
South Asia and India