HOW TO DO PROCESS REFORMS?: CASE STUDY OF VOLUNTARY LIQUIDATION IN INDIA

Large number of process reforms have been done in recent years- including simplification of administrative processes, changes in regulations and legislations, removing obsolete laws, closure of outdated government entities and so on. Even if these changes appear small in many cases, they have led to significant efficiency gains in the overall system. In this paper, we illustrate the impact of process reforms in the area of voluntary liquidation of companies. The purpose of this paper is to provide a case study of how a problem is identified, solved and the outcome measured. The hope is that such a systematic study will lead to institutionalization of such reforms. The bulk of companies that shut down worldwide every year are voluntary, rather than due to involuntary causes such as insolvency or bankruptcy. In India, there are two main routes for voluntary liquidation. One is under Section 248 of the Companies Act, 2013 and the second is Section 59 of the Insolvency and Bankruptcy Code. For both, the process was very complicated and time-consuming until very recently as was pointed out in the Government of India’s Economic Survey 2020-21 and 2021-22. The process reforms carried out since then have completely changed the outcome.

The Great Convergence: A Case Study of Uttarakhand and Himachal Pradesh (2000 to 2020)

We compare the growth and transformation of Uttarakhand (UK) economy to that of Himachal Pradesh (HP) over a period of two decades [2000-2020]. In particular, we examine the changes in the industrial sector output, particularly in view of the Concessional Industrial Package (CIP) for the Hill States announced by the central government in January 2003. What emerged subsequent to the central government’s announcement is akin to a ‘natural experiment’ given the close similarities of the two neighboring states. We study the approaches of the two states in response to the CIP which resulted in differing long-term trajectories of growth for the two neighbors. The only fundamental difference between the industrial policies of the two states was in their land policies, while all others were identical. We find that UK was able to rapidly catchup and subsequently exceed the per capita income of HP within a relatively short period of time. The state was able to better leverage the benefits of the CIP owing to a proactive and dedicated approach to town planning and land use policy which has emerged as one of the most critical impediments to industrialization and urban growth across India. We further investigate the impact of subsequent industrialization on tax revenues and spending patterns of the two states over two decades.

Time Spent on Employment-Related Activities in India: A Note

Recent remarks by leaders of corporate India have sparked an interesting public debate. Their general point is that if India wants to become a developed nation, people will have to work 70 hours a week or more. Assuming a six-day work week, this translates to 700 minutes per day on employment-related activities. So far, the public discussion has mostly focused on efficiency versus quantity of work. Though this is an important aspect, it is imperative to first understand how things stand on the ground by studying the available data. That is, how much time is spent on employment-related activities across states, different economic sectors, types of enterprises, rural versus urban differences, and differences across genders and social groups within the country. In addition, this note also provides evidence of the association between time spent on employment-related activities and the per capita Net State Domestic Product (NSDP) at constant prices.

Examining trends in growth of cities in India using novel high frequency data

Examining volume and directions of domestic migration in India using novel high frequency data

Female Labour Force Participation Rate

The female labour force participation rate (LFPR) is a crucial indicator of women’s economic empowerment and overall economic inclusiveness. This research paper presents econometric analysis highlighting a significant resurgence in female LFPR across Indian states, especially in rural areas, since 2017-18. There are three broad themes for the empirical analysis: (1) Recent trends in female LFPR, (2) The effects of marital status and parenthood on LFPR, and (3) LFPR variations with age and gender across all regions and states of India.