Indian economy is 55.6% free

Heritage Foundation/WSJ's latest report on Economic Freedom says

India's economy is 55.6 percent free, according to our 2007 assessment, which makes it the world's 104th freest economy. Its overall score is 3.3 percentage points higher than last year, partially reflecting new methodological detail. India is ranked 19th out of 30 countries in the Asia–Pacific region, and its overall score is lower than the regional average.

India enjoys strong fiscal freedom, freedom from government, and monetary freedom. The top individual and corporate income tax rates are moderate, and overall tax revenue is not excessive as a percentage of GDP. Government expenditure is relatively low as well, although a significant amount of total tax revenue comes from state-owned businesses. Inflation is fairly low, but government price controls hinder market forces.

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Govt set to spend Rs 1,000 cr to revive four fertilizer units

FE reports

The government has decided to revive four of the eight closed fertilizer units of Fertilizer Corporation of India (FCI) and Hindustan Fertilizer Corporation (HFC) with an investment of about Rs 1,000 crore.

Initially, efforts will be made to revive Barauni, Durgapur plants of HFC and, Sindri and Gorakhpur plants of FCI through public sector participation. If the formula does not work, Expression of Interest (EoI) will be invited from private players.

If there is an economic case for spending Rs 1000 crore on these plants, the question to be asked is, what is really stopping private sector from making the investment. But that becomes a political question. And that's something that this report doesn't make any reference to.

‘Timing of lifting sugar exports’ ban wrong’

FE reports

The government’s decision to lift ban on sugar exports has not at all enthused the sugar industry. Although the industry welcomed the move, it said the timing was wrong since the industry would not benefit from exports as the international sugar prices are almost the same with that of the domestic market. Sugar prices are quoted at around Rs 1,350 per quintal in domestic and international markets.

A telling example. Shows that when businessmen argue for freer markets (wow, i am really influenced by fuller CAC) it's not for free markets, does this not?

Government in public education and health

TN Ninan argues for a mental transition 'from the notion of being the monopoly (or dominant) provider of a service, to an agency that lets others do the work, supervises to make sure that it is done properly, and manages fiscal transfers to take care of the poor, who would otherwise not be able to afford private sector services in these areas.' He writes

There is no reason why the logic of contracting out and offering choice should not be extended to education, where in any case the trend seems to be for students to switch more to private schools—possibly reflecting greater dissatisfaction with public schools. The Planning Commission has had a furious internal debate in recent weeks on the issue of choice in education, and concluded that once you adjust for the different kinds of students who go to private and public schools, their quality of output is not very different. The logical course of action should then be, since nothing is lost, to offer choice and let the customer decide. In the field of health, the government may well find that an insurance system funded by the government, running in parallel with the public health system, might deliver superior results, and patients would then be free to choose the doctors and hospitals they want. Certainly, most government employees would be happy to go to a private hospital to get treatment, especially if the cost to their employer is no different.

To be sure, entrenched interest groups (like the teachers’ unions) will oppose such change, but schools exist for students, not teachers. Also, it has been shown time and again that the public sector tends to work better when it has to compete with the private sector—the Life Insurance Corporation’s spectacular results of the past year, in the face of stiff competition from private insurers, is testimony to this. Once the focus changes to the user of a service and not its provider, the argument is easy to grasp.

Sinophobia: Haier blocked from starting cellphone arm

FE reports

The Reserve Bank of India has rejected a proposal by Chinese consumer electronics major Haier International to set up a telecom handsets marketing venture in India. This is in line with the government’s stand that any investment by a Chinese company should be scrutinised closely.

Haier is the third Chinese company after ZTE and Huawei to be blocked by an arm of government from setting up operations in the country. The apex bank is of the view that since the proposal was from a Chinese company, even though it falls under the automatic route, it would have to be cleared by the Foreign Investment Promotion Board and the department of telecom.

Check out this one too 'Scrutiny of foreign takeovers is prudent not protectionist' by John Kay - here

the capenter and the market

"i cant make it sir," says the emotional carpenter. "it is better you buy it from the ready made shop. There is a beautiful chair with great curves and "mirror polish" . the entire set sells for about rs 25,000 and a single one you need should be around Rs 5000. I doubt if i can even make it for double the price," he explains misty eyed.

I am looking for a comfortable chair as i spend my a lot of my time in front of computer.

Shops importing low priced furniture have sprung up all over the country. They bring in stuff made in china in a mechanised environment with wood from malaysia or indonesia.
"I cant understand their rates. just the lowest priced wood needed - neem - costs more than their finished product. then there is polish, metals fittings and labour charges," says the young `worker of wood' who has postponed his decision to start a furniture shop after identifying the place.

as the winds of free market blow across the country - some sail faster while others have to buffet the flow. and we have to do whats best for us with the hope that it is best for everyone.

textile upgradation fund may be extended

The Union Minister of State for Textiles, Mr E.V.K.S. Elangovan, on Wednesday indicated the possibility of extension of the textile upgradation fund (TUF) scheme.

He, however, maintained that the outcome would be known only during the Budget session.

Mr Elangovan was responding to the issues raised by the South India Small Spinners Association (SISSPA).

The association, in a memorandum sought the support and consideration of the Centre on five specific issues, such as time extension for TUF scheme, the need for streamlining the process for TUF to reduce the delay in disbursement of funds, special subsidy for combers and autoconers under TUF, initiating schemes for youth to tide over the skilled manpower shortage in the textile industry and reduction in the import duty for autoconers.

here