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.

Collateralized Lending by Indian Banks: Some Explanations and Policy Implications

Abstract: This paper draws a parallel between the extent of unsecured lending that a bank does and the screening effort extended by the bank. Since unsecured lending requires screening on the part of the bank, higher the percentage of unsecured loans in total loans, higher is likely to be the screening effort while processing loan applications. Using panel data relating to banks in India, we find that on an average a higher extent of screening effort or unsecured loans is likely to be provided by banks that are large, have low level of non-performing assets, and are in the private sector. Further, persistence in the extent of unsecured lending seems to suggest that any change in unsecured lending/ screening effort is likely to be rather slow.

Food Security From Free Collection of Foods Evidence From India

Abstract: Despite recognition of the role of free collection of foods in forwarding nutritional security, there is only limited systematic research on its importance and role. This paper provides the first estimates for India, of the extent to which households depend on free collection of foods and examines its association with dietary adequacy and quality. In 2011-12 around 5.8% of all Indian households collected foods free, with some households collecting more than ten distinct food types in a month. For these households, free collection comprised, on average, 4.5% of the total value of food consumption, going upto 15% for a tenth of them. Using a pooled cross-section from 2009-10 and 2011-12 of nationally representative household level consumption data that identifies the source of food, this paper uses an instrumental variable approach to estimate the association between free collection of foods and dietary adequacy and quality. The paper finds that the probabiity of having more than two meals increases when households access free foods and there is robust evidence of higher dietary diversity (77% to four-fold), driven by specific food groups such as vegetables, meats, fish and green leafy vegetables. The findings of this paper point to a need to mainstream discussions of sources of food other than farm, market and state, recognizing explicitly the role of free collection in improving dietary adequacy and quality.

Basel II and bank lending behavior: some likely implications for monetary policy

Abstract: The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy in influencing bank lending. This will, however, depend on a number of factors, including whether banks are constrained by the risk-based capital standards, the credit quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model is empirically explored using data on Indian commercial banks for the period 1996-2004. The analysis indicates that the effect of a contractionary monetary policy will be significantly mitigated provided the proportion of unconstrained to constrained banks in the system is significantly high.

On the internal mobility of Indians: Knowledge gaps and emerging concerns

Abstract: This paper identifies key knowledge gaps on the issue of migration and commuting workers in India. First, we need to understand how the sources of income of rural households in India have changed over time. We need to be able to quantify the importance of remittances by migrants and economic contributions of commuting workers as a source of income. Second, we need to understand why estimates of various types of migration flows, in particular short migration flows, captured by official data are at variance with localized studies. It is important to identify and plug the source of this disconnect. Third, we do not fully understand the extent to which rural-urban migration contributes to the phenomenon of urbanization of poverty. And finally, given the concern over exclusionary urbanization we need to understand the legal and structural impediments to migration.