Sector Reforms In India Research Articles

A balanced scorecard to enable electricity distribution sector reforms in India

The performance of the State-owned electricity distribution companies (DISCOMs) that distribute 96% of the electricity in India is critical for the country’s energy security. However, the current studies are not suitable for assessing the performance of India’s DISCOMs in an integrated manner since their underlying models are fragmented. This study presents the development and application of an integrated FOBC framework which is a balanced scorecard including 32 key performance indicators related to finance, operations, business processes, and customer service. This framework is used to benchmark the performance of 40 DISCOMs in 17 States on a like-to-like basis leading to the identification of nine DISCOMs for restructuring. The FOBC framework can be used by the regulators and the government to benchmark DISCOM performance in a holistic manner. This study will be useful for policymakers to implement power distribution sector reforms to enhance energy security while decarbonizing the power sector efficiently.

Analysis of Perspectives on Social Welfare Evaluation of Power Sector Reforms in India

Analysis of Perspectives on Social Welfare Evaluation of Power Sector Reforms in India

Critical Analysis of Banking Sector Reforms in India with Special Emphasis on Technological Advancement

During the last decade banking industry in India has undergone tremendous change, be it, networking, products and services offered, regulatory reforms, strategic manipulations, etc. In the history of Indian banking system this phase can be termed as most revolutionary one. Of all these changes and reforms, technological advancements have a very significant role which has facilitated and initiated several products and services in Indian banking industry. With the advent of foreign banks and subsequent liberalization, it became very necessary to undergo a complete change in order to compete with foreign banks and keep pace with global banking industry. In this paper, the author has tried to focus on important reforms and changes which have taken place over a period of years. He has also given specific and significant consideration to technological advancements which took place in Indian banking industry. The author tries to evaluate empirically the impact of technological advancements on Indian banking industry as well as customer's perception and receptiveness regarding these technological advancements in Indian banking sector.

Privatisation as An Educational Sector Reform In India

The privatization of education brings up the issue with regards to what degree the public functions of education are undermined if schools are given to privately owned businesses rather than the state. Market failure involves the hazard that education may never again be given at a palatable level, and that imbalances could increment immensely if just the privileged sections can bear the cost of good education. Others, be that as it may, would contend that a solid state funded educational framework must be a precondition for social equity. Deregulation as privatization and institutional autonomy in educational sector are impetuses for social disparities while centralised education is regarded to inhibit the legacy of educational opportunities over generations. The following paper deals the debate on privatising educational sector of India in great detail.

Pathways towards India's nationally determined contribution and mid-century strategy

India's emission mitigation policy, as reflected in its Nationally Determined Contribution (NDC), focuses on two energy sector related variables- share of non-fossil sources in the electricity generation sector, and emission intensity of India's GDP. We undertake a scenario-based uncertainty assessment to understand if there is room to enhance the mitigation ambition of India's energy sector related NDC targets and inform long-term decarbonisation. We find that while there is room to enhance ambition on the electricity sector mitigation target, some key uncertainties related specifically to the industrial sector need to be better understood before enhancing ambition on the emission intensity reduction front. We highlight that renewable energy integration cost and decarbonisation of industrial energy use are going to be key challenges for India's long-term decarbonisation strategy, and that electricity sector reforms in India are going to be critical to address both these challenges. Finally, we conclude by highlighting that India could demonstrate leadership by taking additional burden for the world by adopting a peaking year for its power sector emissions as a part of its Mid-Century Strategy.

Solar power sector reforms in India

Solar power sector reforms in India

Stock Return, Growth and Inflation in India: Analysis of Stochastic Seasonality, Impulse Response and Multivariate GARCH

Thisstudy analyses the empirical interdependence among asset returns, industrialgrowth and inflation after controlling for interest rate by consideringstochastic seasonality and conditional volatility with monthly time series inIndia. The HEGY unit root test suggests that industrial growth and inflationexperience only stochastic trend and no persistent stochastic behaviour at anyother seasonal frequencies, while stock return follows persistent seasonaltrend. The study observes that causality goes from stock return to industrialgrowth, although the extent of causality is very low, but not the other wayround. This finding has significant policy implications particularly in thecontext of financial sector reforms in India. Inflation has negative impact onstock returns, while the innovations in stock returns have not transmitted toinflation.

Why Do Institutions Revert? Institutional Elasticity and Petroleum Sector Reforms in India

The institutional change literature has predominantly focused on successful changes and sparsely on failed changes, but the idea of institutional fields reverting to their pre-change or near pre-change state, after change attempts, remains underexplored. Although recent studies have explored similar phenomenon from the perspective of actors resisting change and trying to restore status quo, a field-level understanding of the processes and the dynamics associated with it remains underexamined. The present study, using the case of reforms in the field of petroleum exploration and production in India, examines an institutional change where the institution, once modified, gradually reverted near to its prechange state. We suggest the concept of institutional elasticity to explain such reverting of institutions, and elaborate on three boundary conditions—scope of change, pace of change, and field-level actor constellations—which have implications for the relationship between institutional elasticity and reverting of institutions.

Region-Wise Usage of Banking Services – A study of Gujarat

Financial services actively contribute to the humane & economic development of the nation. Financial services lead to social and economic safety hence, each & every individual should be provided with affordable institutional financial products/services popularly called ―Financial Inclusion‖. Despite witnessing substantial progress in financial sector reforms in India, it is overwhelming to note that nearly half of the rural households even today do not have any access to any source of funds (savings/credit) - institutional or otherwise. Hardly one-fourth of the rural households are assisted by banks. Hence the major task before banks are to bring most of those excluded, i.e. 75 percent of the rural households, under the mainstream of formal financial services. There is a need for the formal financial system to look at increasing financial literacy and financial counseling. As a part of corporate social responsibility now a day’s Indian banks and financial market players should actively look at promoting such programs. Financial products& services are identified as basic banking services like deposits accounts, institutional loans, access to payment, remittance facilities & also life & non-life insurance services. The present paper is an attempt to capture the region-wise usage of banking services. The study collected data of 900 respondents from five regions of Gujarat i.e. South Gujarat, North Gujarat, Central Gujarat, Saurashtra, and Kachchh. The study used a five-point Likert scale agreement method to understand the usage of banking services. Also, the study captured the demographic profile of respondents from. The primary data collected through a structure questionnaire.

Information Age Reform of the Public Sector: The Potential and Problems of IT for India

As in many countries, public sector reform in India has consisted of five main components: increased efficiency, decentralisation, increased accountability, improved resource management, and marketisation. ‘Information age reform’ means delivering these ongoing reform components with a more overt role for information and with greater use of information technology. A review of global experience suggests that information age reform has great potential to improve public administration and other components of the public sector. However, the Indian reality – like that for many developing countries – has been more problematic, with many failures of such reform; failures that can be described as total, partial or failures of sustainability and replication. The explanation for such failure lies partly in the approach to reform adopted by senior public officials. A ‘four Is’ model of approaches is described: the pre-information age approach of ‘ignore’, and the information age approaches of ‘isolate’, ‘idolise’ and ‘integrate’. Analysis of Indian cases suggests it is the last approach that is most likely to deliver reform objectives; yet it remains the least commonly-adopted. Changes are therefore required in current strategies for public administration training and the management of change. Such findings will hold true for many other developing countries.

BANKING SECTOR REFORMS IN INDIA

BANKING SECTOR REFORMS IN INDIA

Why do Institutional Changes Fail? Institutional Elasticity and Petroleum Sector Reforms in India

Institutional change literature has predominantly focused on successful changes, with limited examination of failed institutional changes. The present study, using the case of reforms in the petrol...

Critical reflections on health sector reforms in India: A seminar report.

The papers presented at a recent seminar-"Rethinking gender and body in times of health sector reforms in India"-highlighted the urgent need to integrate gender studies into critical health research in order to understand the complex scenario brought about by the health reforms, and its impact on different categories of people. They also stressed on the need for tracing the historiography of public healthcare in India and the need to scrutinise values not just facts, and develop a dialogic process of learning in order to fully grasp multiple issues.

The impact of macroeconomic variables on the profitability of public and private sector banks in India; A structural equation modeling approach

The Indian banks have strong and sound capital system and the Banking sector reforms in India have opened a new opportunity for the banks operating in public, private and foreign partnership. Due to the changing economic background in the country the banking set-up is also changing. The aim of this research is to analyse the impact of macroeconomic variables determining the profitability of public and private sector banks in India, using a structural equation modeling. Based on the findings of this study, it is concluded that overall, the selected macroeconomic variables are found to have a negligible impact on profitability of public and private sector banks in India. GDP is found to have significant positive effect in all the bank‟s profitability measures. Secondly Inflation, Interest rate and Systematic riskas a mixture, influence significant moderate effect in all bank‟s profit ability measures. Thirdly CNX Bank Index Return has no significant positive effect in all the bank‟s profitability measures. Based on the viability of Structural Equation Modeling (SEM) and statistical significance of important parameter estimates, the profitability of public and private sector banks structure shows the considerably good fit (chi-square minimum/degree of freedom (CMIN/DF)) and the structural model is tolerable.

Examining the changing health care seeking behavior in the era of health sector reforms in India: evidences from the National Sample Surveys 2004 & 2014

BackgroundHealth policy formulations in India have witnessed a shift from a reactive approach to a more proactive approach over the last decade. It is therefore important to understand the effectiveness of recent national health policies (such as the National Rural Health Mission and the National Urban Health Mission) in addressing the varied needs of the heterogeneous population of India.MethodsWe use datasets from the National Sample Surveys carried out in 2004 and 2014 to understand the change in the health seeking behavior as a result of these policies. The choice of health care facilities and the associated expenditures are compared through descriptive analyses. A multinomial logistic regression is used to identify the significant parameters which contribute towards the share of health care providers in India. The health status of two economically disparate Indian states (Bihar and Kerala) are also compared through specific metrics of performance.ResultsIt is seen that due to increased availability of facilities in close proximity, both rural and urban residents prefer to avail of those facilities which will result in minimization of transportation cost. The effectiveness of national health policies is found to vary on a regional scale. Literacy and health status have a strong correlation, thereby reinforcing that Bihar still lags far behind Kerala in terms of access to equitable health care.ConclusionTherefore, a hierarchical system, incorporating medical pluralism and tailor-made policies targeted at diverse health care demands, needs to be put in place to achieve Goal 3 of the Sustainable Development Goals as decreed by the United Nations, i.e., “health for all”.

Financial Sector Reforms in India: Implications for Banking and Taxation

Financial sector reforms in India have formed an important component of the overall economic reforms process initiated in the early 1990s. These reforms have followed a well calibrated approach. The general approach to financial sector reforms has been a transparent, collaborative and consultative process aimed at resolving many possible dilemmas. While the scope of financial sector reforms is immense, this paper focuses on the implications of these reforms for banking and taxation. In general, both these areas have witnessed significant transformation from reforms in terms of switchover to international best practices, enabling legislation, effective monitoring and supervision, and technology.

The conundrum of profitability versus soundness for banks by ownership type: Evidence from the Indian banking sector

Banks pursue profit like any business, but in their role as custodians of domestic savings, they are required to be cautious. Riskier but profitable advances may cause asset quality deterioration, thus affecting the long-term viability of the entity. Financial sector reforms in India from the early 1990s, have raised the level of competition for banks of different ownership types — public sector (PSB), old private banks, new private banks, and foreign banks. We use panel data on 75 banks across the ownership spectrum, for the period 2000–13, to examine their performance vis-à-vis these two measures — profitability and soundness. We find evidence of significant heterogeneity in performance across ownership type. Overall, we find that there is a negative association between the profitability and soundness measures, though these effects vary by ownership type. PSBs, constrained by social outreach commitments, perform comparatively worse. A reluctance to increase commercial loans implies a lack of investment in the knowledge capital necessary for effective risk management. The smaller old private banks have a dedicated client base; despite the pressure of non-performing assets, they remain profitable. Foreign banks maintain high capital adequacy ratio and relatively higher return on assets. The results also provide evidence that good human resource policy is vital for bank performance.

Multivariate Analysis of Indian Banking Sector Performance: A Camel Framework Approach

The objective of banking sector reforms in India was in line with the overall goals of the 1991 economic reforms of opening an economy, giving a greater role to markets in setting prices and allocating resources, and increasing the role of private sector. In the following years, reforms covered the areas of (1) stabilization of banks; (2) partial privatization of state owned banks; (3) liberalization including interest rate deregulation, the reduction of statutory pre-emption, and the easing of directed credit rules; (4) changes in the institutional framework, and (5) entry deregulation for both domestic and foreign banks. The increased opportunities for the banks provided by the deregulation have extended their portfolios, but at the same time introduced new uncertainties and risks. The present paper aims at examining the performance of Indian banking sector using CAMEL framework. CAMEL stands for Capital adequacy, Asset quality, Management, Earnings and Liquidity. We have used the modified version of this framework in which one more factor has been included i.e., Systems and Control.

Monetary Sector Reforms in India

The aim of this paper is to provide an overview pertaining to access of Indian monetary system and its significance and reforms. Indian Financial Market helps in promoting the savings of the economy -- helping to adopt an effective channel to transmit various financial policies. The Indian financial sector is well developed, competitive, efficient and integrated to face all shocks. In the India financial market there are various types of financial products whose prices are determined by the numerous buyers and sellers in the market. The other determinant factor of the prices of the financial products is the market forces of demand and supply. The India money market is a monetary system that involves the lending and borrowing of short-term funds. The financial system was characterised by extensive regulations such as administered interest rates, directed credit programmes, weak banking structure, lack of proper accounting and risk management systems and lack of transparency in operations of major financial market participants. Launch of equity derivatives in Indian market has been extremely encouraging and successful. The growth of derivatives in the recent years has surpassed the growth of its counterpart globally. The Notional value of option on the NSE increased from 1195.691178 lakhs USD in 2003 to 354648.1941 lakhs USD in 2013 and notional value of NSE futures increased from 14329.35627 lakhs USD in 2003 to 39228.38563 lakhs USD in 2013. India is one of the most successful developing country in terms of a vibrate market for exchange-traded derivatives. The equity derivatives market is playing a major role in shaping price discovery. Volatility in monetary asset price, integration of monetary market internationally, sophisticated risk management tools, innovations in monetary engineering and choices at risk management strategies have been driving the growth of monetary derivatives worldwide, also in India. Finally we can say there is big significance and contribution of derivatives to monetary system.

Moving to universal coverage? Trends in the burden of out-of-pocket payments for health care across social groups in India, 1999-2000 to 2011-12.

In the background of ongoing health sector reforms in India, the paper investigates the magnitude and trends in out-of-pocket and catastrophic payments for key population sub-groups. Data from three rounds of nationally representative consumer expenditure surveys (1999–2000, 2004–05 and 2011–12) were pooled to assess changes over time in a range of out-of-pocket -related outcome indicators for the poorest 20% households, scheduled caste and tribe households and Muslims households relative to their better-off/majority religion counterparts. Our results suggest that the poorest 20% of households experienced a decline in the proportion reporting any OOP for inpatient care relative to the top 20% and Muslim households saw an increase in the proportion reporting any inpatient OOP relative to non-Muslim households during 2000-2012. The change in the proportion of Muslim households or SC/ST households reporting any OOP for outpatient care was similar to that for their respective more advantaged counterparts; but the poorest 20% of households experienced a faster increase in the proportion reporting any OOP for outpatient care than their top 20% counterparts. SC/ST, Muslim and the poorest 20% of households experienced as faster increase in the share of outpatient OOP in total household spending relative to their advantaged counterparts. We conclude that the financial burden of out of pocket spending increased faster among the disadvantaged groups relative to their more advantaged counterparts. Although the poorest 20% saw a relative decline in OOP spending on inpatient care as a share of household spending, this is likely the result of foregoing inpatient care, than of accessing benefits from the recent expansion of cashless publicly financed insurance schemes for inpatient care. Our results highlight the need to explore the reasons underlying the lack of effectiveness of existing public health financing programs and public sector health services in reaching less-advantaged castes and religious minorities.