What Would Tintin(s) Do? A Hergé-Inspired Guide to Fiscal Imbalances
The year is 1971 and Belgian comic artist Hergé has just released an updated version of the ‘Land of Black Gold’ as the latest adventure of fearless journalist, Tintin. I’m dropping you right in the middle of the desert where our protagonist has just managed to successfully escape the clutches of an evil sheikh from the fictitious Gulf-country, Khemed. As he tries desperately to find a way out, lo and behold, he finds fresh tyre tracks in the sand, “They’re wheelmarks, Snowy!” he exclaims to his trusty sidekick/dog.
But it’s not all good news for our intrepid adventurer who soon discovers,
“These tracks are all the same! Could it be a convoy of jeeps? Unless…yes, it’s only too obvious. There’s just one vehicle going round and round in circles, following his own tracks. The driver has lost his way!”
And sure enough, no sooner does he say these words to Snowy does he collide with the ditzy detective duo Thomson and Thompson, who have been confidently driving around in circles in search of Tintin themselves.
Unlike these two bumbling detectives in the Khemedi desert, Takshashila’s own intrepid Tintin-esque researchers, Pranay Kotasthane and Sarthak Pradhan have charted a clear path to tackle fiscal imbalances.
In their op-ed for The Print last week, Pranay and Sarthak astutely observe that most dialogue around fiscal imbalances in India focuses on the ‘horizontal devolution’ (allocation of resources between States), while ‘vertical devolution’ (how resources are allocated between the Union government and States) is paid less attention. And here’s the problem: this vertical gap is only increasing. But fear not, dear reader. Pranay and Sarthak have found a way out of the proverbial fiscal desert and have even gone so far as to propose an algorithm by which India can begin to tackle this complex issue. Read more here.
…And What Does This Mean for Karnataka?
But let's not stop there. We invite you to examine these fiscal realities even closer by reading this research report, which assesses and proposes a few “tyre tracks” to follow as we examine Karnataka's revenue situation and proposed asks before the 16th Finance Commission.
If discussing India’s fiscal realities, perhaps it is only fitting that we take a moment to talk about remittances.
India’s Courtship of High-Tech Talent
According to the International Organisation for Migration’s flagship World Migration Report 2024, in 2022, “India was the top remittance recipient country [sic], with total inward remittances exceeding $111 billion, the first country to reach…$100 billion.”
This trend points to a significant Indian diaspora and begets the question: how can this cohort be better leveraged to advance India’s geopolitical and geoeconomic goals? And further, how can domestic talent be better mobilised in service of these goals? Focusing their attention on high-tech talent in particular, Takshashila’s Satya Sahu, Vanshika Saraf, Adya Madhavan, Rijesh Panicker, and Arindam Goswami examine this question through a collection of four essays (which can be read here).
In paper one, Adya examines the role of the Indian diaspora in shaping India’s bilateral relations with the United States and Gulf States (excluding Khemed, of course - a little callback for you to enjoy). In paper two, Satya and Vanshika craft a framework by which India’s high-tech sectors can take advantage of high-value diaspora talent (HVDT).
In paper three, Rijesh examines the importance of global talent in contributing to India’s growth and postulates methods by which India can attract high amidst increasing global competition. Lastly, in paper four, Arindam proposes recommendations on how India's domestic skill development efforts can better respond to evolving geopolitical trends.
We now re-orient ourselves to examine some probing societal questions India grapples with at home.
“That’s one big step better than groping in the dark in despair…”
…writes Takshashila Director, Nitin Pai, in his op-ed in The Mint as he offers a proposed intervention to respond to the waning confidence in India’s law enforcement system. He writes,
“Unfortunately, our politics and public discourse is better at symbolic and symptomatic actions. In response to moral panics, we tend to demand fast-track courts, special laws and exemplary punishment. It is easy for the establishment to accede to these demands because they satisfy public anger. Their overall effect on law enforcement outcomes is ignored. We need a different approach.”
Click here to read more about what he proposes as a viable way forward as India continues to untangle the knotty problem of effective law enforcement.
The 3Rs That India Needs to Invest In
No discussion on a way forward for India is complete without a holistic view on national development goals. Takshashila co-founder, Narayan Ramachandran, continues his series for The Mint, on India’s journey to Viksit Bharat, and makes the case for a renewed focus on primary education. He writes:
“If only one column could be written about the need for a Quantity-to-Quality (QtoQ) transformation, it would be about the need to ensure that learning outcomes at appropriate levels in India’s primary school system are met. Primary school learning outcomes for reading, writing and arithmetic (the 3Rs) are the foundational elements for the developmental progress of any nation. Academic research has clearly shown that one of the primary drivers of the ‘East Asian Miracle’ in the 70s and 80s was continuous investment in human capital.”
Click here to learn more.
Continue with us, reader, as we move now from QtoQ to…X.
X Marks the…Complaint?
Much like Mr. Costanza did in the famed Seinfeld episode on Festivus (Pro tip: Google ‘Seinfeld Festivus’, you won’t be sorry), Takshashila’s Anupam Manur has decided it’s time to air some grievances. What against you may ask? The evolution of social media platforms, such as X, as a means by which to address customer support concerns. Click here to read his succinct (and eye-rolling) take on the issue in an op-ed for the Times of India.
Moving from our consumer-related qualms, let’s cast our gaze internationally to a variety of bilateral dynamics brewing across Beijing, Delhi, Moscow, Tokyo and Washington.
China and Russia: Did Someone Say Power Asymmetry?
In his recent discussion document, Takshashila’s Amit Kumar closely examines the Russia and China relationship vis-à-vis three ties: diplomatic, economic and defence; he weaves together important conclusions including the aversion both countries have toward a “US-led world order” and the competition for economic influence in Central Asia. Amit argues that despite the strategic alignment between both countries, “dependance” is the foremost characteristic of Russia’s relationship with China. Importantly, his analysis goes on to postulate what India’s stance should be in light of these realities. Click here to read more.
Does Recent China-United States Diplomatic Engagement Bode Well for India?
Takshashila’s Anushka Saxena grapples with the question posed in this section header and makes a compelling case in her recent op-ed for the Deccan Herald on why recent interactions between the US and China may not play out in India’s interest. She writes:
“The growing sentiment in the West to de-risk certain value chains from China has created opportunities for countries like India, which has the potential to compete with China in production costs, standards, and backward supply chain linkages. But this effort has its challenges. Strict regulatory restrictions, a lack of openness to business, and robust tariff and non-tariff barriers have led India to lose out in certain sectors to Vietnam, Thailand, and Mexico.”
Click here to dive deeper into some of the nuances of her argument.
It’s Monday Morning…and Japan is Not Happy
On the morning of August 26, Japan sighted a Chinese surveillance aircraft violating its territorial airspace between 11:29 and 11:31 AM. In response, Japan rallied its own fighter jets and registered a formal protest with the Charge d’affaires of the Chinese embassy in Japan. How can and should such actions by China be viewed? What do China’s actions signal to domestic and regional audiences? Takshashila’s Anushka Saxena and Vashika Saraf can be your (non-Thompson and Thomson) guides through these questions and more.
Click here to read their brief analysis on China’s aggressive actions.
But how do Chinese actions vis-à-vis Japan compare with their current dynamics with India? Read on to the next section to find out.
India and China: “It’s Not a Thaw Yet…”
As we turn our attention to India’s bilateral relationship with China, there seems to be a possibility that relations between the two countries may be taking on a softer edge with the recent (promising) conversations between the two countries on security-related issues in Eastern Ladakh as well as economic engagements, writes Takshashila’s Chairperson of the Indo-Pacific Studies Programme, Manoj Kewalramani, in his recent op-ed for NDTV.
While he is optimistic about recent activity within the Working Mechanism for Consultation & Coordination on India-China Border Affairs, Chinese investments in India and the granting of visas to select Chinese professionals, he cautions against ad-hoc measures that may impede the “pragmatic and prudent” path that India is on with regards to engagement with China.
Manoj’s advice (which we would also characterise as “pragmatic and prudent”) to policy decision-makers is to reflect deeply on what India’s vision is vis-à-vis its relationship with China, as both countries continue to take steps toward meaningful engagement.
India’s bilateral relations are not the only place where ad-hoc decision making is seemingly prevalent. We turn our attention now to India’s small arms procurement process.
Small Arms, But Not so Small Problems
Writes Takshashila’s Aditya Ramanathan in his latest op-ed for Moneycontrol,
“India’s small arms procurement system is a mess. To fix it, the Indian army must institute data-driven decision making for firearms acquisitions.”
If you’re wondering what recent decision by the Indian Army has Aditya sharing such strong (Tintin-esque is how we would again characterise it) admonishment, click here to read further.
Singapore’s Calling, Will India Answer?
Trade policymakers and observers, Takshashila’s Anisree Suresh has some timely advice for you: pay closer attention to the economic partnership between India and Singapore. Fresh off the heels of the 2nd India-Singapore Ministerial Roundtable on August 26, her recent op-ed for Moneycontrol argues that India needs to re-examine its trade policies to ensure it does not take too protectionist a stance with its sixth largest trading partner.
She points to a few potential areas for policymakers’ attention in the bilateral trade relationship including: market access for services exports and economic migration. Further, she puts the spotlight on India’s decision to not join the Regional Comprehensive Economic Partnership (RCEP), which hampers it’s access to sectors such as IT and pharmaceuticals (spoiler: India has a comparative advantage here). Could this be a canary in the coal mine for India’s bilateral relationship with Singapore or perhaps even with other Southeast Asian countries? We’ll leave you to decide after reading more here.
Wait, There’s More!
First, a few cheers are in order! 250 to be exact…one cheer for each of the 250 episodes that Puliyabaazi has successfully released as of last week! And true to form, what better way for the podcast to mark this significant milestone than discussing a pressing policy issue: India’s wage problem. Find Pranay Kotasthane, Saurabh Chandra and Khyati Pathak in discussion with Manish Sabharwal (Vice Chairman of Teamlease Services) by clicking here and listening on your platform of choice.
Last but not least, we’re looking for a motivated scholar interested in following developments related to the economy, domestic politics and foreign policy of Pakistan. Know someone up to the task? Refer them to this link.
This edition of the Dispatch was written by Kripa Koshy, Programme Manager for Takshashila’s Post Graduate Programme in Public Policy.