Political Economy

The Political Economy vertical at Pahle India Foundation (PIF) aims to examine and unpack the complex relationship between economic policymaking and the political institutions, ideologies, and electoral incentives that shape it in the Indian context. This vertical aims to explore the dynamic interplay between political processes and economic policy, with a focus on producing actionable insights that can inform decision-making at the highest levels of leadership. Recognising that public policy does not operate in a vacuum, it examines how political incentives, governance structures, and institutional alignments shape and are shaped by economic outcomes.

In this vertical, we aim to integrate research, dialogue, and strategic insight to help stakeholders across government, the private sector, and civil society navigate the political logic that often shapes economic decisions. Through this approach, we seek to build meaningful partnerships with diverse individuals and organizations, amplifying ideas. This vertical will critically engage with the political, social, environmental and economic dimensions of policymaking, promote evidence-based discourse, and contribute to the creation of inclusive and sustainable economic and environmental outcomes.

1. Governance

PIF’s governance research focuses on how institutional design and policy frameworks shape state capacity, democratic outcomes, and development effectiveness. Moving beyond descriptive analysis, the work adopts a comparative and evidence-driven approach to understand how governance systems operate in practice. This work is anchored in four integrated pillars:

• Examining electoral systems and institutional design, including comparative analysis of the First Past the Post system in India and the United Kingdom, to assess their implications for representation, stability, and policy effectiveness.
• Analysing federal governance and Centre–State dynamics to understand how administrative structures and coordination mechanisms influence policy implementation and service delivery.
• Strengthening science and technology policymaking through collaboration with the Office of the Principal Scientific Adviser to the Government of India, with a focus on institutional innovation and evidence-based decision-making.
• Assessing Corporate Social Responsibility as a governance instrument, with emphasis on uneven geographic and sectoral allocation of CSR spending and its implications for equity, accountability, and development outcomes.

2. Jobs & Livelihoods

PIF’s work on jobs and livelihoods focuses on understanding how employment is created, sustained, and accessed across sectors, with a strong emphasis on inclusion, job quality, and regional economic contexts and rural–urban linkages.. Rather than fragmented interventions, the approach examines systemic constraints and ecosystem-level solutions. This work is anchored in four integrated pillars:

• Identifying labour market barriers, skill mismatches, informality, and structural constraints affecting employment generation and income security.
• Examining traditional and cultural livelihood sectors such as handloom and handicrafts, with a focus on value-chain gaps, market access, design and technology adoption, and the sustainability of artisan livelihoods.
• Assessing livelihood models and policy interventions that can generate scalable, resilient, and regionally relevant employment opportunities across rural and urban economies.
• Strengthening rural development pathways by analysing non-farm livelihoods, local enterprise ecosystems, infrastructure access, and the role of village-level institutions in enabling income diversification.

SHG / MSME / Entrepreneurship

PIF’s work on SHGs, MSMEs, and entrepreneurship examines the full enterprise continuum—from collective livelihoods and micro-enterprises to growth-oriented and women-led businesses. The research focuses on how institutional, financial, and market ecosystems enable or constrain enterprise formation, formalization, and scale. Rather than assessing schemes in isolation, the approach examines how policy intent translates into enterprise outcomes. This work is anchored in four integrated pillars:

• Analysing access to formal credit, financial inclusion mechanisms, and the role of public and private financial institutions across different stages of enterprise growth.
• Assessing the impact of digital skilling, technology adoption, and market-linkage initiatives on productivity, competitiveness, and resilience.
• Identifying ecosystem enablers and scalability constraints, including regulatory, infrastructural, and market-access barriers.
• Evaluating the effectiveness of government schemes, institutional support systems, and entrepreneurship promotion policies in fostering inclusive, growth-oriented, and women-led enterprises.

3. Sustainability

PIF’s sustainability work focuses on designing context-specific pathways for resilient rural economies and long-term environmental stewardship. Rather than advancing a single model, the approach recognises that sustainability challenges vary across regions due to differences in agro-climatic conditions, market access, institutions, and social structures. PIF therefore works across multiple entry points to balance productivity, livelihoods, and ecological outcomes. This work is organised around three interconnected areas.

• Promoting farming systems that restore soil health, enhance biodiversity, and reduce dependence on external chemical inputs while maintaining farm viability.
• Addressing agriculture’s climate risks and emissions through locally adapted, resilience-focused solutions aligned with wider climate and energy goals.
• Transforming agricultural and organic waste into economic and environmental assets through circular economy models.

Team

At Pahlé India Foundation, the Political Economy Team focuses on how decisions are shaped long before policies reach the ground. Bringing together expertise in economics, governance, and sustainability, the team explores the political incentives and institutional realities that determine whether reforms succeed or fall short in India. Under the guidance of Dr. Rajiv Kumar, and with strategic support from Ravi Pokharna and Shaurya Doval, the work is led by Dr. Jyoti Yadav with other Distinguished fellows Prof Harpinder Sandhu and Dr. Nandita Mondal. Together, the team turns complex political and economic dynamics into practical, evidence-based insights that support more effective and durable policymaking.