by Arun Kumar

Digitalisation and formalisation are projected by the Government as a solution to the Indian economy’s problems. However, digitalisation has further damaged the unorganised sector without formalising it. Demand has been shifting from the unorganised to the organised sector. Given that the organised sector is more capital intensive than the unorganised sector, this demand shift has resulted in decrease in employment generation, greater inequality and shortage of demand, which have led to the economy slowing down. However, since the size of the unorganised sector is not independently estimated, it is invisiblised in the data.

This article is part of Aspects of India’s Economy no.s 81 & 82, Digitalisation in India: The Class Agenda. Other articles from the issue are soon to be released.

Read more at:

https://rupe-india.org/aspects-no-81-82/digitalisations-marginalising-impact-on-indias-unorganised-sector

Dear friends,

We have re-launched the website of Aspects of India’s Economy at https://rupe-india.org. Please do visit it and give us your responses so that we can improve it. We are sorry that the site has been down for quite some time as we were building the new site. Do help us in spreading the word and popularising the site once more. (We would also like to thank the artist-activist Anupam Roy for allowing us to use his powerful artworks on the site.)

We have retained our earlier website as an archive of earlier issues, at https://rupe-india.org/old-site/ . We are profoundly grateful to those who ran it all these years.

Shortly we will publish on our site the latest issue of Aspects, Digitalisation in India: The Class Agenda. Articles from varied contributors cover questions such as:

— the impact of digitalisation on the unorganised sector (Arun Kumar),

— ‘smart’ cities (Hussain Indorewala),

— ‘digital health’ (Indira Chakravarthi),

— the digitalisation of education (Manali Chakrabarti and Rahul Varman),

— digitalisation and welfare programmes (Rajendran Narayanan), and

— digitalisation and precarity (Anurag Mehra).

In a closing piece, RUPE will comment on the overall drive and agenda of digitalisation in India and its impact on various sectors, including the agrarian sector.

We eagerly look forward to comments and criticisms from our readers.

Rajani X. Desai,

Editor, Aspects of India’s Economy

We are happy to announce the following translations of RUPE publications. We apologise for the delay in announcing these translations, all of which were published some time ago.

1. Punjabi translation of Crisis and Predation: India, Covid-19 and Global Finance
A Punjabi translation of RUPE’s Crisis and Predation has recently been published by Surkh Leeh Parkashan. The translation has been done by Dr. Anupama, Economics Department, Punjabi University, Patiala.

Copies are available from Surkh Leeh Parkashan, Nakkai Wali Pahi, PUDA Colony, Gandhi Nagar, Rampura Phul, Bathinda, Punjab 151001. Email: surkhleeh@gmail.com. Mobile: 9478584295, 9417054015. The price is Rs 200.

Copies of the English version of the book are still available with RUPE.

2. Hindi translation of Women and Globalization
A Hindi translation of the RUPE publication Women and Globalization & Controversies on the Women’s Question has appeared, under the title Vaishvikaran aur Mahilayen. It has been published by Gargi Prakashan, 1/4649/45B, Gali no. 4, New Modern Shahdara, Delhi 110032. Email: gargiprakashan15@gmail.com. Mobile: +919810104481. The price is Rs 60.

The notes in this collection were published in English between 1981 and 2000, over two decades ago. Except for the first note, which was written for an ILO seminar, they were written for different gatherings of democratic organisations addressed to the question of women.

During the last two decades, the rulers have intensified the oppressions on women, sometimes even when speaking in the name of women’s rights. The various tactics of the rulers have rendered the need for a democratic movement of women all the more urgent. Hence readers and friends of RUPE felt these notes were still relevant and useful for those involved in struggles on social and class questions.

The translation of this collection was carried out, in the main, by Jaya Sajal, who died at a young age on October 3, 2017. Other friends have also given invaluable help in preparing the manuscript for translation. We thank them all profoundly and dedicate this publication to the memory of Jaya.

Rajani X. Desai

3. Telugu translation of “SBI Research Doubles Farmers’ Income”
The article “SBI Research Doubles Farmers’ Income” was translated in July 2022 into Telugu by Paruchuri Jamuna. The file can be accessed here.

[The following article is the fifth instalment in a series.]

5. The Adani Group and International Capital
The year 2023 was a tumultuous one for the Adani Group of companies. In January 2023, according to a report by the US research firm Hindenburg, the Adani Group was worth $218 billion, and Adani had a personal net worth of $120 billion, making him the world’s third richest person.

The Hindenburg Research report appeared a year ago, on January 24, 2023. It labeled the Adani group “the largest con in corporate history”.[1] Share prices of firms in the group plummeted: the market valuation of the group as a whole fell by $150 billion. So did Adani’s personal wealth (comprised mainly of the shares of his own companies). Financial markets considered there was a serious risk of default on Adani borrowings: The market price of 2024 Adani Green Energy dollar bonds (September 2024 maturity) on international exchanges dropped from $95.19 on January 24 to $63.05 on February 2.

However, over the past year the group’s share prices, and Adani’s own wealth, have recovered to a large extent. As of January 2024, the combined market value of the group has risen to just $47 billion below the pre-Hindenburg price.[2] Adani has climbed back up the Bloomberg Billionaire Index, to no. 12, a few steps below his position a year ago. On any given day, depending on the daily fluctuations of share prices, either he or Mukesh Ambani is the richest person in India. The 2024 Adani Green Energy dollar bond is now trading at $97.61.[3]

We do not aim to go here into the various aspects of the Adani phenomenon, which would require a book-length study. We look here at a limited question: what, if anything, did Adani’s crisis and his recovery signify about his relationship with international capital and the West? In what way are India and Indian businessmen making their presence felt in the world?

Continue Reading »

[The following article is the fourth instalment in a series.]

4. The G20 Summit and After
The killing of Hardeep Singh Nijjar took place in June 2023, and the alleged plot to murder Gurpatwant Singh Pannun took place a little earlier, in May-June 2023. The Canadian and US governments concluded immediately that these were done on the instruction of the Indian government. However, they did not publicly air their allegations of Indian government involvement in these two events till September in the case of Nijjar and November 2023 in the case of Pannun.

Keenly aware of the Indian rulers’ aspiration to recognition as a global power, the US did its best to make the September 2023 G20 summit in New Delhi a success. Biden attended the summit, in contrast to Putin and Xi, who stayed away. In the words of Brookings fellow Tanvi Madan, “Prime Minister Modi has wanted to make it India’s coming-out party to the world — as a major power, with its own independent voice, whose time has come”. The Wall Street Journal remarked: 

… [F]rom an American standpoint, the most beneficial of… [recent] developments is the emergence of India as one of the world’s leading powers and as an increasingly close partner of the U.S. The G-20 summit was a personal diplomatic triumph for Prime Minister Narendra Modi. With both the Chinese and Russian leaders absent, Mr. Modi dominated center stage at a world gathering just weeks after India joined the elite club of countries that have landed probes on the moon.[1]

The G20 was set up to address the 2008 Global Financial Crisis and its aftermath, and hence was meant to focus on economic questions of global importance. At the present juncture, it was expected to focus on three grave questions: the debt crisis of developing countries, the rise in global food prices, and climate change. The questions of the reform of multilateral development banks and the multilateral trading system were also pressing. However, the Summit made negligible progress in relation to any economic issue, and restricted itself to some general statements of little practical consequence.[2] Instead the focus of discussion was shifted to achieving consensus on a resolution concerning the conflict in Ukraine. Once this was achieved by making a statement too vague to give offence to anyone, the summit was celebrated as a success.

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[The following article is the third instalment in a series.]

3. India’s ‘human rights’ and the western powers

It is a year now since the broadcast of the BBC documentary, ‘India: The Modi Question’ (the first part was released on January 17, 2023, and the second part a week later). The documentary’s main ‘revelation’ was the report of a confidential UK government inquiry at the time of the Gujarat riots (2002). The inquiry concluded that Narendra Modi (then chief minister of Gujarat) was directly responsible for the riots, and referred to the events as a “systematic campaign of violence” with “all the hallmarks of ethnic cleansing”. Jack Straw, foreign secretary of the UK at the time, is interviewed in the documentary. He reveals that he ordered the confidential inquiry into the events in Gujarat because he was “very worried” about the developments there. The magazine Caravan has carried the text of the report on its website. 

However, the documentary in fact contains no revelations as such. The events in question were reported extensively by Indian organisations and individuals two decades ago.

The 206-page report of the Concerned Citizens Tribunal, Gujarat 2002: An Inquiry into the Carnage in Gujarat, headed by former Supreme Court judges V. R. Krishna Iyer and P.B. Sawant, and former High Court judge Hosbet Suresh, was published in October 2002. The Tribunal based its findings on 2,094 statements from victims, First Information Reports, eyewitness accounts, and findings of forensic investigations. It also went through more than a dozen fact-finding reports and inquiries that had already been carried out by various Indian organisations. Significantly, the Gujarat cabinet minister Haren Pandya deposed before the Tribunal on May 13, 2002, directly incriminating Narendra Modi.[1]

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[The following article is the second instalment in a series.]

2. The benefits of Russian crude oil imports

Western sanctions and Indian actions
The most frequently cited example of India’s independent and self-assertive policy in the recent period has been its decision to import crude oil from Russia, despite Western sanctions on that country.

Did India’s imports of Russian oil, “serve the Indian people”, as External Affairs Minister Jaishankar said, in defiance of the dictates of the US, UK, and Europe? The reality is that the Indian people did not benefit. As we shall see below, the beneficiaries were the western countries; private sector refiners in India; and to some extent the finances of the Government of India (as distinct from the Indian people). 

Through their sanctions on Russia, the western powers intended to achieve two ends: (1) They wished to maintain the flow of oil from Russia, thereby bringing international oil prices under control, and (2) at the same time, they wished to keep Russia’s revenues down, thereby maintaining pressure on the Russian government. Therefore, they placed a cap of $60 per barrel on the price at which crude oil could be imported by any country from Russia; this was much below the market price. For imports within that cap, other services related to transport and financing too were permitted. The explicit aim of these exemptions was to “reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.”[1]

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[The following article is the first instalment in a series.]

1. Introduction

On December 21, 2023, India’s Parliament passed bills replacing three existing legislations regarding criminal justice[1]with revised Acts titled in Sanskrit.[2] The Prime Minister said that this was a “watershed moment in our history. These bills mark the end of colonial-era laws. A new era begins…” 

This is the latest in a series of such measures by the Indian government. In his 2022 Independence Day speech, the Prime Minister asked Indians pledge to remove “any trace of the colonial mindset”. Shortly thereafter, he changed the name of the capital’s central avenue from Rajpath to Kartavya Path, and congratulated the Indian people “for their freedom from yet another symbol of slavery of the British Raj”. In September 2023, the Indian Parliament moved from its colonial-era building to a brand new structure. The Finance Minister no longer carries a briefcase when presenting the Union Budget, but instead the Indian ‘bahi-khata’, thereby “shedding another vestige of a colonial past.”[3]

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Amid the present fateful developments in Palestine, it is worth turning back to an article of December 2006 by Jacob Levich[1], “A Counter-Revolution in Military Affairs? Notes on US High-Tech Warfare” (at https://rupe-india.org/old-site/42/rma.html; re-published here). It has proved remarkably prescient.

The article examined the United States’s ‘Revolution in Military Affairs’ (RMA), 

a new system of warfare that was said to combine innovative battlefield tactics with high-tech weaponry, networked communications, and sophisticated surveillance technology…. ‘Wired’ or ‘postmodern’ warfare, it was widely claimed, would transform the 21st-century battlefield and assure American supremacy for generations to come.

Levich pointed out that so-called ‘precision munitions’ failed to reduce civilian casualties (they actually increased them). However, this was not of such concern for the US and its allies such as Israel; the greater concern was that these weapons were ineffective in quelling guerrilla resistance. This was so particularly in Lebanon:

During the invasion of Lebanon, Hezbollah fighters were able to counter Israel’s US-supplied smart bombs using classic guerilla tactics, digging in (a network of reinforced underground bunkers consistently thwarted precision weapons) or blending into the population as circumstances required. Nor were Israel’s high-tech targeting systems effective in locating small, easily portable weapons like Hezbollah’s Katyusha rockets….

… [A] rough evaluation of the bunker buster’s performance could be derived from the IDF’s 2006 attack on Lebanon. In July, the US rushed 100 bunker busters to Israel as part of an effort to kill Hassan Nasrallah and the rest of Hezbollah’s leadership. The assassination targets, concealed to a depth of 40 meters in a network of hardened bunkers, emerged unscathed.

He argued that the construction and sustenance of such a network required popular support and involvement:

The tactics that defeated Israel’s high-tech munitions — construction of elaborate underground command centers and hardened missile sites throughout the country, lightning transfers of armaments and fighters in the face of Israeli bombardment, even the fighters’ ability to melt at will into the civilian population — required the sympathy and coordinated assistance of the people, often over years of painstaking preparation.

The US’s elaborate infrastructure of electronic surveillance and reconnaissance (US C4I – Command, Control, Communications, Computers and Intelligence), designed for traditional battlefields, was not equipped to deal with guerrilla warfare by

small, lightly equipped groups that are virtually undetectable by US drones, or at worst indistinguishable from civilian traffic. Small-scale, highly efficient “hit and run” attacks (e.g., IEDs and sniper fire) are calculated to thwart US drones; cellular organization and face-to-face communications are relied upon to outflank signals intelligence.

Moreover, the guerrilla forces were not averse to using technology themselves, albeit of a cheaper variety:

Even more disturbing to US theoreticians, Hezbollah’s successful defense of southern Lebanon in 2006 provided evidence that a well-organized guerilla force can beat the high-tech West at its own game. Hezbollah flummoxed Israel’s satellite and overflight intelligence with decoys, developed counter-signals technology that cracked encrypted radio communications, and intercepted key battlefield information simply by listening in on IDF soldiers’ cell phone calls to their families.

Frustrated by their failure to ‘decapitate’ the leaderships of resistance in Iraq and Lebanon, the US and Israel resorted to punitive air war:

As a result, the air war in Iraq has undergone a distinct shift over time from precision tactical bombing to strategic bombing intended to punish the people for their support of the resistance. A similar trajectory was followed, much more rapidly, in Lebanon, where the Israeli Air Force responded to the failure of its initial precision strikes against Hezbollah by widening the air war to civilian targets, including apartment buildings, airports, bridges, highways, and human beings….

Analysis borne out by October 7 and after
Nearly all of these observations apply to the October 7 operation by Hamas and the ensuing developments. The following account draws on reports in the Washington Post, the Financial Times, the BBC, the New York Times, and Haaretz.

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Who Loses, Who Gains?

Indian government bonds are added to the JP Morgan Emerging Markets index

1. Illusory gains; volatility; net drain; regime of monitoring

2. The effects of the fiscal policy demanded by foreign investors

3. The Indian ruling classes’ calculations


1.

Almost two years ago, we wrote a note pointing to the strenuous efforts the Indian rulers were making to get Indian government bonds added to international bond indices. After two years of stalling and starting, the rulers’ efforts have finally succeeded: JP Morgan has now decided to add Indian government bonds to its “emerging markets government bond index” (GBI-EM), starting in June 2024.[1] The effects of this will be seen with a lag, over the next few years, but the impact will be far-reaching.

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