National Institute of Bank Management, Pune

(An Autonomous Apex Institute Established by RBI & Banks)

( Registered as a Society under the Indian Societies Registration Act 1860
Recognized as a scientific and Industrial Research Organization by Department of Scientific
and Industrial Research, Ministry of Science and Technology, Government of India )

Latest Issue

October-December 2020
Volume XLIX
No. 3

Editorial

Contents

 

 

Determinants of Vertical Intra-Industry Trade in India: Empirical Estimates on Select Manufacturing Sectors

Sakshi Aggarwal
Debashis Chakraborty

There exists a rich empirical literature on the presence of intra-industry trade (IIT), i.e., simultaneous exports and imports within the same product groups and its determinants, both in the context of developed and developing countries. With deepening of Global Value Chains (GVCs) and International Production Networks (IPNs) across the globe, a rise in IIT has generally been noticed and India is no exception to this trend. The current paper analyses India's IIT in select sectors and decomposes the same in Vertical IIT (VIIT) and Horizontal IIT (HIIT) categories in terms of product quality, using trade data at the HS 6-digit level. It is observed that India's IIT is predominantly vertical in nature. India's VIIT has increased significantly over 2001-18 in select sectors, barring the exception of base-metals and iron-steel segments. The analysis next focuses on the determinants of India's VIIT during 2001-15 in a panel data framework by considering both country-specific and sector-specific factors. The empirical results reveal that increase in capital-intensity, higher skill-intensity of workforce, multilateral as well as regional trade policy reforms, higher research and development orientation, trade facilitation measures and decline in industrial concentration facilitates India's cross-sector VIIT pattern. The interaction terms in the model indicates that growing sophistication in production may create greater scope for trade in vertically differentiated products. The results have interesting implications for India's recent manufacturing sector policy framework, particularly the 'Make-in-India' initiative.
 

The Insolvency and Bankruptcy Code, 2016: Ushering in a New Era to Resolve Stressed Assets
Manoj Anand
Jagandeep Singh

The growth of stressed assets in the Indian public sector banks has been unrelenting in terms of its negative impact on profitability as well as business growth. The Insolvency and Bankruptcy Code (IBC), 2016 is a defining moment in stressed assets resolution through competitive bidding process. It has ushered in financial creditors- control regime, timely resolution with a focus on transparency, accountability, equity and justice.  The framework has been designed to expedite substantial recovery, encourage entrepreneurship and strengthen the wheels of commerce. Out of top 12 cases that account for Rs. 3.45 lakh crore, six cases were resolved as at March 31, 2019. This paper used case study methodology to examine the mechanism and efficacy of resolution plans for first five resolutions under IBC, 2016. The firms-in-distress were Bhushan Steel, Electrosteel Steels, Monnet Ispat & Energy, Amtek Auto, and Essar Steel.

 

Regional Income Convergence and Spatial Spillovers in Madhya Pradesh

Bilal Ahmad Bhat
Somesh K Mathur

This study examines the convergence of growth of per capita income across the districts of Madhya Pradesh first estimating the basic cross-section equations for unconditional and conditional convergence then provides the estimates from spatial data model over a period from 2004/05 to 2016/17. There is existence of unconditional beta (b) convergence and conditional beta convergence when controlled for more conditioning variables, sigma convergence also confirm the decline in disparity in distribution of per capita income. From the spatial data analysis a significant spatial autocorrelation is revealed in the initial level of per capita income and majority of other conditioning variables. The significant spatial econometric models implies that the growth rate of per capita income of districts depends on how better their neighbours are doing. This has important policy making implications in Madhya Pradesh.

 

A Brief Article

Business Contingency Plan for MSMEs under COVID-19 Environment

Shyam Ji Mehrotra
V S Kaveri

In the current COVID-19 pandemic scenario, MSMEs are critically hit hard experiencing   loss of production and income though they have a significant role to play in the economy. While both the Government and the  Reserve Bank of India have come forward with several economic relief measures during lockdown to infuse more liquidity in the market, facilitating banks to lend more and  creating a conducive environment to overcome disruptions caused due to COVID-19 in demand  for and supply of MSME products, much is expected from these enterprises. In particular, MSMES are expected to prepare Business Contingency Plan suggesting strategies to survive, stabilize and surge under lockdown environment. In this regard, their efforts need to be strengthened. Appreciating this felt need, the present paper attempts to present a live case as a source of guidance to MSMEs which discusses concept and process of preparation and implementation of the Business Contingency Plan during lockdown.

 

Book Reviews

 

Safe and Sound Banking : Deposit Insurance and Resolution in India – Developments, Issues and Policies (DICGC Act, 1961 to FRDI Bill 2016 and Beyond)

Manas R Das

Mumbai, Himalaya Publishing House, 2020, pg. lvi  + 365, Rs. 1495.

Reviewed by
Shri Ganga Narayan Rath, former Chief General Manager, Reserve Bank of India and 
Dr V S Kaveri, former Professor, National Institute of Bank Management, Pune.

 

HOW TO REACH NIBM

National Institute of Bank Management NIBM Post Office, Kondhwe Khurd
Pune 411 048, INDIA

CONTACT US

ENQUIRE HERE

All Fields are mandatory.