External Dimension of an Emerging Economy, India: Essays in Honour of Sunanda Sen

165 Pages·2013·2.273 MB·English

by  Byasdeb Dasgupta (ed.)

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External Dimensions of an
Emerging Economy, India
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0 This book offers an analysis of the external dimensions of an emerging economy,
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8 India, against the backdrop of neoliberal globalisation. The external dimensions
2 of the Indian economy signify its inter-relation with the rest of the world in terms
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0 of trade and financial flows, and how that affects the development process within
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a the country in the age of neoliberal globalisation. It is based on non-mainstream,
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y heterodox approaches to economics, and as such is a critique of the mainstream
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r neoclassical position on current neoliberal globalisation.
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Li The book covers the following issues: India’s external dimension in the colonial
x period, through the trade route; concerns regarding India’s balance of payments
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s transactions in terms of illegal flows; the political economy of development plan-
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S ning in the present era of globalisation; capital flows as they affect India’s external
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o front; the Indian pharmaceutical industry under the TRIPs regime; India’s regional
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t economic integration and foreign capital flows in India during the liberalisation
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r period. The entire book is an attempt to decipher the meaning and significance of
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i the process of globalisation for India’s real economy.
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U The book is unique as it offers an opportunity to find a number of different
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y heterodox positions dealing with the external dimensions of emerging India all in
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d one place. This is rare in any other book.
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o Byasdeb Dasgupta pursued his PhD on third world debt crisis during the
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w eighties under the supervision of Professor Sunanda Sen at the Centre for
o Economic Studies and Planning of Jawaharlal Nehru University, New Delhi.
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He started his professional career as a lecturer in economics at University of
Kalyani, where he is still located, now as an associate professor. He has visited
China and several European countries as a visiting professor and has published
articles in several journals and books. Along with Professor Sunanda Sen, he
wrote Unfreedom and Wage Work – Labour in India’s Manufacturing Industry
(Sage, 2009). Presently, Byasdeb is pursuing two research projects – one on
labour security in the urban informal economy and the other on imperialism – old
and new, the latter with Professor Sen.
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External Dimensions of an
Emerging Economy, India
Essays in honour of Sunanda Sen
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First published 2013
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2013 Byasdeb Dasgupta
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1 The right of Byasdeb Dasgupta to be identified as the Author of the editorial
0 material, and of the Author for the individual chapters, has been asserted in
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e accordance with sections 77 and 78 of the Copyright, Designs and Patents
n Act 1988.
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J All rights reserved. No part of this book may be reprinted or reproduced or
0 utilised in any form or by any electronic, mechanical, or other means, now
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8 known or hereafter invented, including photocopying and recording, or in
2 any information storage or retrieval system, without permission in writing
8: from the publishers.
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t British Library Cataloguing in Publication Data
a A catalogue record for this book is available from the British Library
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r Library of Congress Cataloging in Publication Data
a External dimensions of an emerging economy, India: essays in honour of
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b Sunanda Sen / edited by Byasdeb Dasgupta.
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L pages cm
x Includes bibliographical references and index.
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s 1. Economic development–India. 2. India–Economic policy. I. Sen,
us Sunanda. II. Dasgupta, Byasdeb.
S HC435.3.E98 2013
f 330.954–dc23
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y 2012046955
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s ISBN: 978-0-415-53501-4 (hbk)
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e ISBN: 978-0-203-49124-9 (ebk)
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n Typeset in Times New Roman
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by Sunrise Setting Ltd, Paignton, UK
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Contents
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J List of figures and tables vi
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3 Notes on contributors viii
8 Acknowledgements x
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at Introduction 1
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a 1 India, the Great Depression and Britain’s demise as world
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b capitalist leader 7
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x UTSA PATNAIK
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us 2 Illegal flows in India’s BOP accounts: their components and
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f impact on the economy 28
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y ARUN KUMAR
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r 3 Some aspects of external dimensions of the Indian economy in
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v the age of globalisation 44
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U BYASDEB DASGUPTA
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b 4 Macroeconomic policy within cycles of international capital
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e flows: the Indian experience 68
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a SUKANYA BOSE
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w 5 Multinationals and monopolies: the pharmaceutical industry in
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D India after TRIPS 90
SUDIP CHAUDHURI
6 Regional economic integration: new context and analytical
constructs 110
RAM UPENDRA DAS
7 Political economy of development planning and reforms in
India: evolution of the Plan philosophy over the years 138
SUPARNA KARMAKAR
List of figures and tables
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0 Figures
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8 1.1 India’s trade balance with the world (1900–13) 22
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8: 1.2 India’s trade balance with the world (1924–38) 22
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t 3.1 India’s trade-related degree of openness (1970–2012) 47
] a 3.2 Foreign capital-related openness (1990–2012) 49
y 4.1 Net private capital inflows to EME 70
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r 4.2 India’s net international investment position (as at end March) 72
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Li 4.3 Monetary expansion and flexible exchange rate 74
x 4.4a GDP growth and procyclical capital flows (1991–92 to 2010–11) 77
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s 4.4b Capital inflows and financial markets (1991–92 to 2010–11) 77
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u 4.4c Capital inflows, interest rate, exchange rate: 1991–2 to 2010–11 78
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f 4.5 Monthly nominal exchange rate and RBI intervention
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y (1998:04–2011:10) 84
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si 4.6 Real exchange rate, trade and capital inflows 84
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e 5.1 Plant and machinery investments 95
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ni 5.2 India’s formulations trade 96
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5.3 Imports of finished goods by MNCs 97
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y 6.1 Increase in number of RTAs 112
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d 6.2 Dynamism in intra-regional exports (2001–10) 113
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d 6.3 Depth of RTAs 114
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o 6.4 Trade diversion not necessarily bad 115
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1.1 India’s trade balance with the world (1900–13) 9
1.2a India’s export earnings from the world by main destinations
(1900–38) 9
1.2b India’s imports from the world by main sources (1900–38) 10
1.3 India’s trade balance with the world (1924–38) 21
1.4 UK trade balance with the world, including and excluding the
Indian sub-continent 23
List of figures and tables vii
1.5 The Indian sub-continent’s trade surplus earnings from the
world excluding UK 23
3.1 India’s degree of openness in terms of trade flows (1970–2012)
(in US $million) 47
3.2 Foreign capital-related openness of India (1990–2012) 48
3.3 Some indicators in India’s balance of payments (1990–2012) 51
3.4 Selected indicators of India’s external sector (2006–11) 51
3.5 Banking capital in the capital account of India’s balance of
6 payments (1990–1 to 2011–12) 54
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0 3.6 Net income flows in the current account of India’s balance of
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e payments (from 1990–1 to 2011–12) 55
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u 3.7 Correlation matrix between net incomes and degrees of
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0 openness (from 1990–1 to 2011–12) 55
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8 3.8 Net transfers in the current account of India’s balance of
2 payments (from 1990–1 to 2011–12) 56
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0 3.9 Correlation matrix between net transfers and degrees of openness 57
at 3.10 Foreign investments in India (from 1990–1 to 2011–12) 58
] 3.11 Foreign investment in India as a percentage of GDP 59
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ar 3.12 Net transfer of financial resources from India (from 1990–1
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3.13 Correlation matrix between net transfers of financial resources
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e and degrees of openness in India during the reform period 61
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us 4.1 Summary statement of India’s balance of payments 71
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4.2 Trends in monetary and credit variables 81
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t (2006–10) 93
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y [ 5.5 Market structure of new drugs (2010) 101
b 5.6 New drugs marketed by MNCs (2010) 102
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a 6.1 Intra exports/imports as percentage of total exports/imports
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l (2010) 112
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Notes on contributors
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0 Sukanya Bose presently works as a consultant at the National Institute of Public
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8 Finance and Policy, New Delhi, focusing on empirical issues relating to the
2 Indian macroeconomy. Her doctoral research under Professor Sunanda Sen
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0 examined, from a heterodox perspective, movements in policies and their
at impact as India progressively liberalised its financial sector. She teaches
] courses on macroeconomics and international finance, and also has several
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ar years’ experience of work in the voluntary sector in the field of education and
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b economics education.
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x Sudip Chaudhuri is a professor of economics at the Indian Institute of
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s Management, Calcutta. His research interests include the patents regime and
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S pharmaceutical industry, industrialization and economic development in devel-
f oping countries and the role of the state in economic change. His wide pub-
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y lication record includes WTO and India’s Pharmaceuticals Industry: Patent
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si Protection, TRIPS and Developing Countries, published by Oxford University
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e Press. He obtained his PhD from CESP, JNU under the supervision of Professor
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ni Sunanda Sen.
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y [ Ram Upendra Das is a senior fellow at the Research and Information System
b for Developing Countries (RIS), New Delhi. He obtained his PhD. and M.Phil
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e degrees under the supervision of Professor Sunanda Sen at Jawaharlal Nehru
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a University, New Delhi. With 22 years of research experience, he has been
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l involved in inter-governmental trade-related negotiating processes and has
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w numerous publications to his credit.
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Byasdeb Dasgupta is an associate professor in the Department of Economics
at the University of Kalyani in West Bengal. He works on issues pertaining
to finance, labour and development, as well as Marxist perspectives on these
issues. Dr Dasgupta obtained his M.Phil and PhD under the supervision of
Professor Sunanda Sen at the Centre for Economic Studies and Planning of
Jawaharlal Nehru University in New Delhi. Along with Professor Sen, he wrote
Unfreedom and Waged Work – Labour in India’s Manufacturing Industry,
which was published by Sage India in 2009.
Notes on contributors ix
Suparna Karmakar currently works as an independent research professional,
focusing on trade policy and economic regulations. She obtained her PhD from
CESP, JNU under the supervision of Professor Sunanda Sen. Dr Karmakar
is a trade economist with long research experience in trade and development
policy and economic regulations. Her primary research interests are regulatory
barriers and technical standards impeding multilateral and regional trade in
goods and services and market access (including trade facilitation) policy and
negotiation issues arising therefrom. She has served as a consultant for Indian
6 government as well as multilateral bodies like the WIPO, UN agencies and
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0 internationally known research institutes.
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n Arun Kumar has taught economics at the Centre for Economic Studies and
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J Planning, Jawaharlal Nehru University since 1984. He went to Princeton
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3 University, USA to study for a PhD in physics, and in 1977 switched to a PhD
8 in Economics at Jawaharlal Nehru University. He specializes in development,
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8: public finance and public policy and macroeconomics. His book The Black
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t Economy in India, (Penguin, 1999) broke new ground in thinking about the
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] Indian economy and its development.
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ar Utsa Patnaik has taught economics at Jawaharlal Nehru University since 1973,
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b after obtaining a doctorate from Oxford University. Her main areas of research
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interest are the problems of transition from agriculture and peasant-predominant
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e societies to industrial society, both in a historical context and at present in rela-
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us tion to India, and questions relating to food security and poverty. These issues
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have been discussed in 110 papers published as chapters in books and jour-
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o nals. She has authored several books, including Peasant Class Differentiation:
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t A Study in Method (1987), The Long Transition (1999) and The Republic of
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r Hunger and Other Essays (2007). A German translation of selections from the
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v last book appeared in 2009. She has also edited and co-edited several volumes,
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U including Chains of Servitude: Bondage and Slavery in India (1986), Agrarian
y [ Relations and Accumulation – The Mode of Production Debate (1991), The
b Making of History – Essays Presented to Irfan Habib (2000) and The Agrarian
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e Question in Marx and his Successors, in two volumes (2007, 2011).
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