Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

Policy Trade-offs in an Open Economy and the Role of G20 in Global Macroeconomic Policy Coordination

Abstract: Heightened volatility in capital flows in recent years have complicated macroeconomic management by aggravating real exchange rate misalignment, excesses in credit market, asset price booms and busts, and exacerbating financial fragility, thereby reiterating the need to actively manage capital flows. The recent Global Financial Crisis has also highlighted the need for a coordinated approach across countries in managing capital flows as it is likely to be more effective than unilateral actions, given that any prudential measure adopted to tackle capital flow volatility tend to have cross-border spillover effects, often times putting the burden of adjustment on other countries. India’s experience highlights the adoption of a calibrated approach toward liberalization of the capital to minimize risks associated with financial fragilities and macroeconomic distortions. India has navigated the well-known macroeconomic trilemma by embracing an intermediate approach and balancing the policy objectives as per the demands of the macroeconomic situation. Both domestic and global events have influenced the exchange market pressure indices in India, which has exhibited a great deal of fluctuation, and has primarily been affected by changes in the trade balance, portfolio equity inflows, and stock market fluctuation.

Will Net Metering Model for Residential Rooftop Solar PV Projects Work in Delhi? – A Financial Analysis

Abstract: In order to promote solar energy generation in Delhi, Delhi Electricity Regulatory Commission (DERC) has issued regulations for ‘net metering’ based Solar Photo Voltaic (SPV) rooftop projects. The paper aims to examine the financial viability of the notified scheme for residential consumers based on the current costs and applicable electricity tariff in Delhi, India. The self-owned and the third party owned models are evaluated for different SPV system sizes which are suitable for installation on residential rooftop spaces. The paper compares the Internal Rate of Return (IRR) based on cash flows for different cases using a deterministic financial model. Results indicate that with the current costs, smaller systems (2.5 and 5 kWp) are suitable for self ownership, but require the existing 30% subsidy in order to be financially viable. However, the return on larger self-owned systems (10 kWp and above) is sufficiently high and does not warrant the subsidy. On the other hand, third party ownership is commercially not feasible for smaller systems, while returns on larger systems are sufficiently high. The paper while analyzing the IRR for various cases concludes that there are certain drawbacks in the scheme as it does not allow optimal utilization of rooftops for generation of electricity. These limitations if relaxed, can improve the financial viability for various models and can encourage decentralized generation of electricity in Delhi.

Sustaining Indian Growth: Interests Versus Institutions

Abstract: Inclusive institutions make correct policy choices required for steady catch-up growth more likely. India started out with highly inclusive political institutions since it adopted democracy with universal suffrage at independence. But extractive economic institutions, inherited from the British, were made more so by economic controls. In addition, a heterogeneous electorate allowed politicians to cultivate vote-banks and populist schemes instead of delivering better public services and governance. India’s opening out was adequately nuanced and flexible but was sometimes used as a substitute for harder domestic reforms. It, however, added to the growing constituencies that benefit from growth, and are pushing for more inclusive productivity enabling economic institutions. Broader interest groups create better institutions and incentives. Examples from general governance, the regulation of industry, and agricultural marketing show the process, although messy and prolonged, is in the right direction.

Employment Guarantee for Women in India: Evidence on Participation and Rationing in the MGNREGA from the National Sample Survey

Abstract: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which guarantees employment of every rural household for 100 days, has different progressive provisions which incentivise higher participation of women in the programme. Official data suggest that 47 of all MGNREGA workers are women. This paper uses the National Sample Survey for the 68th employment-unemployment round (2011-12) to examine the performance of states in terms of participation and rationing of women in the programme relative to that of men. In addition, it documents these indicators from various sub-populations of women, including widows, mothers of young children, etc. who typically face serious constraints in the context of labour market participation. The study finds substantial variations both across states and sub populations implying the need for a differentiated policy focus across states to support women's access to and participation in the MGNREGA.