India needs accountability, should clean up politics, end cronyism: Dr Arun Kumar

By Soumyadip Chattopadhyay, Arjun Kumar
The pandemic pushed the Indian economy to the greatest crisis that it ever had to face, leading to its collapse in the month of April/May 2020. Although the official data computed the fall at 7.7%, the economy has declined by around 29%, estimated Dr Arun Kumar, Malcolm S Adiseshiah Chair Professor, Institute of Social Sciences, New Delhi.
Chairing a panel discussion on the topic, Pandemic & Union Budget 202: Implementation and the way forward, organized by Impact and Policy Research Institute (IMPRI), New Delhi, and Counterview, he argued that the Finance Minister has not taken the correct macroeconomic framework into account and missed a golden chance to shift the economy back onto its tracks. He highlighted the critical challenges of ensuring universal vaccine administration, tackling the new variants of Covid-19 that has emerged, reviving the demand in the economy and bringing an end to the menace of crony capitalism.
Expanding on this growing challenge of cronyism, Dr Kumar listed out a few examples of how crony capitalism could negatively impact several sectors and dismantle the efforts to build back better. He went on to add that the rapid spree of disinvestments that are in the pipeline will flood the asset markets, leading to a drop in the asset prices. This will provide the crony capitalists with cheap assets.
Further, commenting on the increased investments in capital intensive projects, he added that in the allocation of said projects, the crony capitalists may interfere and impair transparent and unbiased allocation. This can lead to the formation of large monopolies in several sectors like telecom etc. Even with regards to the plans of setting up a Development Finance Institution – DFI, he cautioned that cronyism could lead to corruption and bias in the disbursal of funds. Crony capitalism may also dismantle the intentions of setting up Bad banks, he remarked.
Dr Kumar noted that in the garb of promoting the concept of minimum government, maximum Governance, the government is hellbent on its mission to dismantle the public sector. However, the pandemic has shown that the public sector is of critical importance.

Rather than doing away with it completely, the government should focus on making them more efficient and accountable, he suggested. The real problem is the rising crony capitalism that has crept up in the public sector. This needs to be tackled with better implementation of rules and by bringing about a clean-up of politics, he opined.
---
Acknowledgements: Nikhil Jacob, based in Goa, is a research intern at IMPRI, New Delhi, and is pursuing post-graduate diploma in Environmental Law and Policy at the National Law University, Delhi

Comments

NYT: RSS 'infiltrates' institutions, 'drives' religious divide under Modi's leadership

By Jag Jivan A comprehensive New York Times investigation published on December 26, 2025, chronicles the rise of the Rashtriya Swayamsevak Sangh (RSS) — characterized as a far-right Hindu nationalist organization — from a shadowy group founded in 1925 to the world's largest right-wing force, marking its centenary in 2025 with unprecedented influence and mainstream acceptance. Prime Minister Narendra Modi , who joined the RSS as a young boy and later became a full-time campaigner before being deputized to its political wing in the 1980s, delivered his strongest public tribute to the group in his August 2025 Independence Day address. Speaking from the Red Fort , he called the RSS a "giant river" with dozens of streams touching every aspect of Indian life, praising its "service, dedication, organization, and unmatched discipline." The report describes how the RSS has deeply infiltrated India's institutions — government, courts, police, media, and academia — ...

Why experts say replacing MGNREGA could undo two decades of rural empowerment

By A Representative A group of scientists, academics, civil society organisations and field practitioners from India and abroad has issued an open letter urging the Union government to reconsider the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and to withdraw the newly enacted Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The letter, dated December 27, 2025, comes days after the VB–G RAM G Bill was introduced in the Lok Sabha on December 16 and subsequently approved by both Houses of Parliament, formally replacing the two-decade-old employment guarantee law.

Domestic vote-bank politics 'behind official solidarity' with Bangladeshi Hindus

By Sandeep Pandey, Faisal Khan The Indian government has registered a protest with Bangladesh over the mob lynching of two Hindus—Deepu Chandra Das in Mymensingh and Amrit Mandal in Rajbari. In its communication, the government cited a report by the Association of Hindus, Buddhists and Christian Unity Council, which claims that more than 2,900 incidents of killings, arson, and land encroachments targeting minorities have taken place since the interim government assumed power in Bangladesh.

Investment in rule of law a corporate imperative, not charity: Business, civil society leaders

By A Representative In a compelling town hall discussion hosted at L.J School of Law , prominent voices from industry and civil society underscored that corporate investment in strengthening the rule of law is not an act of charity but a critical business strategy for building a safer, stronger, and developed India by 2047. The dialogue, part of the Unmute podcast series, examined the intrinsic link between ethical business conduct , robust legal frameworks, and sustainable national development, against the sobering backdrop of India ranking 79th out of 142 countries on the global Rule of Law Index .

ArcelorMittal faces global scrutiny for retreat from green steel, job cuts, and environmental violations

By Jag Jivan ArcelorMittal is facing mounting criticism after cancelling or delaying nearly all of its major green steel projects across Europe, citing an “unsupportive policy environment” from the European Union . The company has shelved projects in Germany , Belgium , and France , while leaving the future of its Spanish decarbonisation plan uncertain. The decision comes as global unions warn that more than 5,500 jobs are at risk across its operations, including 4,000 in South Africa , 1,400 in Europe, and 160 in Canada .

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

2025 was not just a bad year—it was a moral failure, it normalised crisis

By Atanu Roy* The clock has struck midnight. 2025 has passed, and 2026 has arrived. Firecrackers were already bursting in celebration. If this is merely a ritual, like Deepavali, there is little to comment on. Otherwise, I find 2025 to have been a dismal year, weighed down by relentless odds—perhaps the worst year I have personally witnessed.

Gig workers’ strike halts platforms, union submits demands to Labour Ministry

By A Representative India’s gig economy witnessed an partial disruption on December 31, 2025, as a large number of delivery workers, app-based service providers, and freelancers across the country participated in a nationwide strike called by the Gig & Platform Service Workers Union (GIPSWU). The strike, which followed days of coordinated protests, shut down major platforms including Zomato , Swiggy , Blinkit , Zepto , Flipkart , and BigBasket in several areas.

Can global labour demand absorb India’s growing workforce?

By N.S. Venkataraman* Over the past eleven years, India has claimed significant economic growth , emerging as the world’s fourth-largest economy. With the Government of India continuing to pursue economic and industrial development initiatives, this growth momentum is expected to continue in the medium term.

Search This Blog