The low productivity trap of collateralised lending for MSMEs
The share of bank credit extended to MSMEs increased dramatically during the pan-demic. In this post, Harsh Vardhan discusses the the government guarantee of bank loans as a possible driver of this gr...
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Harsh Vardhan
07 October, 2022
- Perspectives
The disruptive market power of foreign portfolio investors in the face of tax threat
Foreign portfolio investors in emerging markets are known to exit host capital markets promptly if any policy changes impose additional costs. Based on an analysis of daily trading data during a perio...
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Hisham Farag
Andrew Marshall
Biwesh Neupane
Suman Neupane
Chandra Thapa
02 November, 2022
- Articles
How NBFCs are reinventing MSME finance
Even though micro and small enterprises make up over 99% of MSMEs in India, they receive a relatively small proportion of bank credit. Chandra and Muthusamy look at how lending to MSMEs has evolved ov...
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Rohit Chandra
Nishanth Muthusamy
15 September, 2022
- Perspectives
Land and financial misallocation in India
Optimising the allocation of factors of production – land, capital and labour - improves productivity. In India, where evidence suggests land is severely misallocated to inefficient manufacturing fi...
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Gilles Duranton
Ejaz Ghani
Arti Grover Goswami
William Kerr
20 July, 2016
- Articles
Access to credit and female labour supply in India
While microfinance is believed to have the potential to increase female labour force participation, short-term experimental evaluations of microfinance have not found significant economic benefits for...
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Erica Field
Rohini Pande
30 June, 2016
- IGC Research on India
Are small and medium enterprises constrained by the inability to raise funds from the equity markets? Evidence from the creation of a new platform in
Small and medium enterprises employ 40% of India’s workforce, and account for 45% of the manufacturing output and 40% of the total exports of the country. However, productivity in the sector is very...
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Sanjay Banerji
Krishna Gangopadhyay
Madhav Shrihari
30 June, 2016
- IGC Research on India
How do disclosures affect financial choices? The case of life insurance in India
Given the importance of insurance, and the regulatory push towards improved disclosures.
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Renuka Sane
Ajay Shah
30 June, 2016
- IGC Research on India
Socially disadvantaged groups and microfinance in India
The benefits of microfinance are in the details. This column takes a look at lending by commercial banks in India to self-help groups – smaller, informal community-based groups – as a new and succ...
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Jean-Marie Baland
Rohini Somanathan
Lore Vandewalle
16 May, 2016
- Perspectives
The Indian banking system: A ticking time bomb
In response to RBI’s call to accelerate the recognition of stressed assets, publicly traded banks in India added nearly Rs. 1 trillion in bad loans in the quarter ending December 2015. In this arti...
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Ashish Pandey
13 May, 2016
- Perspectives
Recapitalising public sector banks by disinvesting in RBI: Right and wrong
The Economic Survey 2015-16 put forth the argument that the Government of India could reduce its capital in the RBI from its current large level and use it to increase its capital in public sector ban...
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Gurbachan Singh
09 May, 2016
- Perspectives
Achieving financial inclusion: Going cashless
A World Bank survey reveals that while about half of all individuals in India had bank accounts in 2014, only 12% had made a cashless transaction in the past year. In this article, Bappaditya Mukhopa...
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Bappaditya Mukhopadhyay
06 April, 2016
- Perspectives
How doorstep banking increased savings and income in Sri Lanka
Recent findings in development economics indicate that microloans are likely to perform best when accompanied by financial education, insurance, and savings products. This column presents evidence fro...
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Michael Callen
Suresh de Mel
Craig McIntosh
Christopher Woodruff
30 March, 2016
- Articles
Increasing economic divide within backward castes
While the high level of socioeconomic inequality between the forward and backward caste groups in India is well documented, there is little research on inequalities within the backward caste groups. T...
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Ashish Singh
28 March, 2016
- Articles
Financial inclusion for the poor: Using RCTs for effective programme design
While the Pradhan Mantri Jan Dhan Yojana – the Indian government’s flagship financial inclusion scheme - is impressive in its mission, it does not seem to have achieved meaningful results so far....
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Ruchira Bhattamishra
06 January, 2016
- Perspectives
When higher volatility is good news
Conventional wisdom suggests that access to financial services such as banks and bond markets, providing savings and borrowing instruments, allows smoothing consumption over lifetime, irrespective of...
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Rudrani Bhattacharya
Ila Patnaik
16 December, 2015
- Articles
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India’s insurance sector: Challenges and opportunities
While India’s insurance sector has been growing dynamically in recent years, its share in the global insurance market remains abysmally low. This article traces the journey of the Indian insurance s...
Kuntala Bandyopadhyay
Saon Ray
Vasundhara Thakur
31 August, 2020
- Articles
Financial inclusion in India: Progress and prospects
Financial inclusion is globally considered as a critical indicator of development and well-being of society. In this post, Srinivasa Rao traces the financial inclusion journey in India so far, and dis...
K. Srinivasa Rao
11 July, 2018
- Perspectives
Thinking about financial sector reforms in India
A key element of the economy that needs to function well in order to facilitate India’s strong and sustained recovery from the pandemic is the financial system. In this post, Sengupta and Vardhan d...
Rajeswari Sengupta
Harsh Vardhan
15 November, 2021
- Perspectives