Sovereign Wealth Funds: A Critical Analysis
Roshni Garg and Abha ShuklaVolume 41, Issue 2 (Jul - Dec) 2020
Sovereign wealth funds (SWFs) refer to government owned investment vehicles that mostly invest abroad to meet some pre-determined macroeconomic objectives. Over the past few years, the number of SWFs and their assets have multiplied. In India too, SWFs have taken several big stakes during the Covid-19 pandemic and become the fourth largest category of foreign portfolio investors (FPIs) among thirty-two categories of FPIs investing in India. They have also expanded their footprint into debt and real estate markets. Despite this, not much is known about their investment activities, primarily owing to lack of data. By analysing multiple resources and databases, this paper seeks to give an overview of SWFs, their evolution, investment activities and associated challenges. We find that commodity exporting nations have been the pioneer of these funds and almost all SWFs have a strong preference for investing in real estate and finance, especially in high-income developed countries. We also discuss the characteristics of Indian SWF, NIIF and how it is different from conventional SWFs. Our paper concludes with a brief discussion on the presence of foreign SWFs in India and the need to further explore the issue in detail.
Heterogeneous Growth Trajectories of Indian States: Growth Regressions Through the Lens of Club Convergence
Meenakshi SharmaVolume 41, Issue 2 (Jul - Dec) 2020
This paper examines the growth trajectories of Indian states. We find that not only is the disparity among states increasing, there is evidence that the distribution of the per-capita income of states is becoming bimodal. We use the methodology of Phillips and Sul (2007) to identify convergence clubs among Indian states and find three clubs. Furthermore, in a novel application of this methodology we use the identified clubs to run separate growth regressions for different clubs of states and find significant differences in the regression coefficients. This vindicates our approach and shows that combining data from all states at the same time to study growth dynamics can be misleading in a heterogenous country like India.
Competitive Behaviour of Outward Foreign Direct Investment from India
Manoj Kumar Sinha and Shalini RawalVolume 41, Issue 1(Jan- June) 2020
The paper intends to focus on the direction of Outward Foreign Direct Investment (OFDI) from India. It also analyses the competition for Indian overseas investment among different country groupings. In terms of direction of OFDI from India, the changes in ranks of FDI outflows to developing countries are more than that of developed countries. Ranking patterns reveals that there is high level of competition among developing countries to attract Indian overseas investors. Somewhat same results are depicted by Index of Rank Dominance (IRD) in case of all the countries of the world, where out of total 25 countries, 7 are developed countries and other are developing countries, majority of them are considered to be tax havens. Mobility and Turnover shows high competition for OFDI from India in developing countries than developed countries.
A Trend Analysis of NPAs of Banks in India for 2008-2018
Amit Kumar Singh and Renuka PrasadVolume 41, Issue 1(Jan- June) 2020
Non-Performing Assets (NPAs) are one of the indicators indicating the performance of banks in India. As Indian Financial system is banking dominated, its health reflects the health of the economy. This paper discusses the Gross NPA, Gross Advances and thus the Asset Quality of Public Sector banks, Private Sector banks and Foreign banks from 2008-2018. The objectives of the paper are to analyse the trends in banking sector, highlight individual banks and understand few dynamics. The data is mainly secondary in nature collected from the RBI website. The study finds that Public Sector banks have deteriorating performance than other banks in the period. The asset quality deteriorated to 11.2% in 2018 as highest peak. It also found that there exists positive relation of Gross NPA ratio among PSB, PV and FB. Also there was significant difference in the Gross NPA (in amount) and Gross NPA ratio of different structure of banks measured by ANOVA. PSB advances are less affected by Gross NPA as compared to others.
Empirical Investigation of Select NSE Sector specific Indices to ascertain seasonality & asymmetries in their return & volatility
Rakesh Shahani and Ananya SharmaVolume 41, Issue 1(Jan- June) 2020
The current study makes an attempt to investigate the month-wise seasonal variation in returns (& also volatility of returns) of four sector specific indices viz. Nifty Auto, Nifty FMCG, Nifty Pharma and Nifty Real Estate of National Stock Exchange for the ten year period April 2009 to March 2019. Besides this, the study would also investigate spill-over of volatility from one sector specific index to another and also ascertain asymmetries in their return and return volatility. The data for the purpose of the study includes log transformed monthly returns of the four sampled sector specific indices. The methodology employed for this purpose include OLS (NW) Regression for testing seasonal impact in returns and GARCH(1,1) framework for ascertaining seasonal impact in return volatility. Further for asymmetry of returns, ‘T’ GARCH Model has been employed & for spill-over impact, residual squared error terms has been included in the GARCH Model. The results of the study showed that seasonal variation in returns did exist in some of the sector specific indices. In terms of results of asymmetry in volatility, only one index Nifty Auto was found to have asymmetric returns , on the other hand the spill-over impact from one sector to another was not visible from the results. The data was also tested for stationarity using DF-GLS test & all sector specific indices were found to be I(1) stationary.
Determinants of External Debt in India
Swami Prasad Saxena and Ishan ShankerVolume 41, Issue 1(Jan- June) 2020
This paper uncovers theoretical foundations of the factors influencing external debt and presents empirical model of the macroeconomic determinates of external debt in India for a period from 1990-91 to 2016-17. The OLS model reveal that gross fiscal deficit, net domestic savings, net domestic capital formation, exports, imports, real effective exchange rate, foreign exchange reserves, net terms of trade, consumer price index, debt service ratio, net foreign direct investment, gross domestic product and real interest rates (LIBOR) are the prominent macroeconomic variables and they explain 62 percent of the total systematic variations in India’s gross external debt.
Introducing the Concept of “Holistic Development & Well-being of Employees (HDWE)”
Seep Sethi and Mala SinhaVolume 41, 2020
The present study attempts to re-examine the concept of well-being at work in the contemporary scenario. The nature of work and workplace are changing rapidly, increased competition, work pressure, 24X7 work culture, etc. has made it important to re-examine the current literature on well-being at work to address the growing issues of stress, anxiety, and work-life imbalances. An exploratory study was also undertaken with the aim to understand the perspectives that prevail amongst the working professionals concerning the concept of well-being at work. Based on literature and results of the exploratory study, the paper attempts to re-define the concept of well-being at work by collectively examining all of its dimensions, viz. psychological, physical, financial, social, career and spiritual well-being, to make it more holistic. In the extant literature the dimension of spiritual well-being has been studied separately, and never been integrated with the other dimensions of well-being. The present paper proposes a more holistic framework on well-being at work which considers all the dimensions collectively in the work context.
Are We Ready for yet another Crisis: Institutional Liquidity Viability?
Megha Jain and Saurabh JaiswalVolume 41, 2020
The current liquidity fiasco is not anymore, a confidential matter. In view of the same, the current study is an attempt to investigate deeper in order to gain insights of the so-called liquidity crunch on key sectors in India such as Mutual Fund, Microfinance institution, Banking and the Corporate. The analysis indicates towards the grim fundamentals in the upcoming year(s). The silver lining shall be a combination of efforts from the central bank along with a fiscal boost in order to make the desired dent to a shiny future.
Foreign Direct Investment in Multi Brand Retail in India – An Interpretative Phenomenological Analysis
Chandra Shekhar Sharma and Sameer LamaVolume 41, Issue 1(Jan- June) 2020
Foreign Direct Investment in Multi Brand Retail has been a contentious issue both for the policy makers and the foreign investors who are willing to invest in India. Various stakeholders are baffled to assess the overall implication of FDI in Multi Brand Retail. The purpose of this phenomenological study is to examine the perceived implications of FDI in Multi Brand Retail in India for various stakeholders. To address the central research question if it makes a sense to open the door for foreign investors in multi brand retailing in India, the authors have adopted an interpretative phenomenological analysis methodology to examine the experiences of the various stakeholders associated with foreign direct investment in multi brand retailing in India. Analysis of 52 significant statements from a series of semi structured interviews revealed that FDI in Multi Brand Retail would lead to a number of economic and social problems in India. However, it was also revealed that FDI in Multi Brand Retail would improve the logistics and infrastructural prospects in both the rural and urban areas in India. People are still skeptic with the issue of employment generation or displacement but majority of the participants feel that some form of employment will be generated as a result of FDI in multi brand retailing. The political and administrative structure shall play a critical role for the reform to be successfully implemented in India. The study is the first of its kind in India and certainly the study would help the scholars from the academia and the policy makers to presuppose their argument on FDI in multi brand retailing in India.
Aspects of Returnee Emigrant Workers from the Gulf: An Empirical Study
Rajeev KumarVolume 41, Issue 1(Jan- June) 2020
The paper explores the behavioural and other aspects of the returnee emigrants who worked for at least one year in any one of the six member countries of the Gulf Cooperation Council (United Arab Emirates, Saudi Arabia, Kuwait, Oman, and Bahrain and Qatar) in the last ten years. The paper is based upon a field survey conducted in nine districts of the Western Uttar Pradesh. Primary focus of the paper is on the decision of the returnee emigrants and their households in terms of remitting money while abroad, return and utilisation of remittance by their family. Apart from that the paper also tries to explore various other issues like financing of the initial cost of migration and occupational choices upon return.