Food Security :-
Background:-The Economic Survey 2015-16 presented here today in the Parliament by the Union Finance emphasizes that the main aim of food management policy is to provide food security to the population. Providing food security entails making food available at affordable prices at all times, without interruptions. In order to provide food security, in the current agriculture scenario, India has to focus on supplies which are timely and uninterrupted and affordable for the poor. Though India’s GDP growth has been impressive and the agricultural production has also increased over the past few decades, hunger and starvation still persist among the poorer section of the population. There has been moderation of inflation including food inflation during the last two years, but more needs to be achieved by freeing up markets, augmenting supply of food and leveraging the use of IT.
Highlights:-
57 % of Households had Calorie intake below 2160 KCal/Consumer unit/day
Average Protein intake Per Capita per day Rises Steadily
India Has the Second Highest Number of Undernourished People which Warrants Immediate Attention
Economic Survey 2015-16 states that India has the second highest number of undernourished people at 194.6 million person (FAO, State of Food Insecurity in the World, 2015) which warrants immediate attention. Moreover, with 27 per cent of the population below the poverty line, the rise in prices of food impacts the poor adversely, with a greater proportion of their household incomes being spent on food. Therefore, along with provision of food subsidy, stability in agricultural commodity prices is essential for making poorer sections food secure.
There is a strong correlation between stability in agricultural production and food security. Volatility in agricultural production impacts food supplies and can result in spikes in food prices, which adversely affect the lowest income of the population.
With a large number of people who remain undernourished and the issues of volatility in agricultural prices, Economic Survey 2015-16 states that India has one of the largest scheme of food schemes in the World to ensure food security. There is entitlement feeding programs like the Integrated Child Development Scheme (ICDS) (All Children under six, pregnant and lactating mothers) and MDMS (Mid Day Meal Schemes), food subsidy programmes like the Targeted Public Distribution System, Annapurna ( 10 Kgs of free food grain for destitute poor) and the Employment Programmes like Mahatama Gandhi National Rural Employment Guarantee Scheme (100 days of employment at minimum wages) to ensure food security.
Few Data of Importance:-
- India Ranks First in Milk Production, Accounting for 18.5 Per Cent of World Production
- India Recording A Growth of 6.26 % whereas World Milk Production Increases by 3.1 %
- Per Capita Availability of Milk in India has Increased from 176 grams per day in 1990-91 to 322 grams per day by 2014-15
- Egg and Fish Production has also Registered an Increasing trend over the Years
- Production of Horticulture Crops have Outpaced the Production of Food Grain Since 2012-13.Percentage Share of Horticulture Output in Agriculture is more than 33 Per Cent
- Labour Force participation Rate higher in Rural Areas than Urban Areas, significantly lower for females than males. Women account for 57% of employment given under MGNREGA in the Current Financial Year
Indian Economy Outlook
Indian economy stands out as a haven of macroeconomic stability, resilience and optimism and can be expected to register GDP growth that could be in the range of 7.0 per cent to 7.75 per cent in the coming year.
Despite the global meltdown, Indian economy will continue to grow more than 7 percent for the third year in succession in 2016-17 helped by a normal monsoon,. The Economic Survey (2015-16) presented in Parliament today by the Finance Minister states that due to Government’s commitment to carry the reform process forward, conditions do exist for raising the economy’s growth momentum to 8 percent or more in the next couple of years. The survey underlines that despite global headwinds and a truant monsoon, India registered 7.2 per cent growth in 2014-15 and 7.6 per cent in 2015-16, thus becoming the fastest growing major economy in the world.
The survey points-out that the growth in agriculture sector in 2015-16 has continued to be lower than the average of last decade, mainly on account of it being the second successive year of lower-than-normal monsoon rains. As per the information of the Department of Agriculture and Cooperation and Farmers Welfare for 2015-16, the production of foodgrains and oil-seeds is estimated to decline by 0.5 per cent and 4.1 per cent respectively, while the production of fruits and vegetables is likely to increase marginally. A brighter picture is expected to emerge from the allied sectors consisting of livestock products, forestry and fisheries with a growth exceeding 5 per cent in 2015-16, which will provide some impetus to rural incomes.
Growth in industry is estimated to have accelerated during the current year on the strength of improving manufacturing activity. The private corporate sector, with an around 69 per cent share of the manufacturing sector, is estimated to grow by 9.9 per cent at current prices in April-December 2015-16. The Index of Industrial Production (IIP) showed that manufacturing production grew by 3.1 per cent during April-December 2015-16, vis-à-vis a growth of 1.8 per cent in the corresponding period of the previous year. The ongoing manufacturing recovery is aided by robust growth in petroleum refining, automobiles, wearing apparels, chemicals, electrical machinery and wood products including furniture. Apart from manufacturing, the other three segments of the industry sector- electricity, gas, water supply and related utilities, mining and quarrying and construction activities are witnessing a deceleration in growth.
The survey underlines that the growth in the services sector moderated slightly, but still remains robust. Being the main driver of the economy, the sector contributed about 69 per cent of the total growth during 2011-12 to 2015-16 and in the process expanding its share in the economy by 4 percentage points from 49 to 53 per cent.
The services sector in India has remained the most vibrant sector in terms of contribution to national and state incomes, trade flows, FDI inflows, and employment. According to the Economic Survey 2015-16 tabled in Parliament today, the services sector contributed almost 66.1% of its gross value added growth in 2015-16 becoming the important net foreign exchange earner and the most attractive sector for FDI (Foreign Direct Investment) inflows. Despite the slow down in the post crisis period (2010-14) India showed the fastest service sector growth with a CAGR (Compound Annual Growth Rate) of 8.6% followed by China at 8.4%. In 2014 India’s services sector growth at 10.3% was noticeably higher than China at 8.0%. As per the ILO (International Labour Organisation) report on “Global Employment and Social Outlook : Trends 2015” job creation in the coming years will be mainly in the service sector.
The survey in its outlook clearly points out though the emerging market economies have clearly slowed down, the Indian economy stands out as a haven of macroeconomic stability, resilience and optimism and can be expected to register GDP growth that could be in the range of 7.0 per cent to 7.75 per cent in the coming year.
Spreading JAM across India’s Economy:-
The Economic Survey 2015-16 presented here today in the Parliament by the Union Finance emphasizes that JAM Trinity –Jan dhan, Aadhaar, Mobile- can help government to implement large-scale, technology-enabled and real-time Direct Benefit Transfers (DBTs) to improve economic lives of India’s poor. First variety of JAM- PAHAL scheme of transferring LPG subsidies via DBT -has reduced leakages by 24 per cent. Economic Survey suggests that while deciding where next to spread JAM, policymakers should consider the challenges of beneficiary identification, distributor opposition and beneficiary financial inclusion. Spreading JAM to other areas will reduce leakages and provide more fiscal space to the Government.
JAM Components:
Economic Survey divides JAM into three components-
- Identification or First-Mile: Identification of beneficiaries by government
- Transfer or Middle-Mile: Transfer of fund to beneficiaries by government
- Access or Last-Mile: Access of fund by beneficiaries
Identification:
First-mile deals with identification of beneficiary. This layer has issues of ghost and duplicate names due to administrative and political discretion and use of pre-Aadhaar database. It is easier to implement the JAM for universal scheme than targeted one as identification will be easier. Identification of household-individual connection is important to note here as some schemes target at household level like JDY and some at individual level like Aadhaar. Aadhaar can help in better identification of the beneficiaries.
Transfer:
Middle-mile deals with the challenges of payment where government transfer benefits to the banks. But lack of bank accounts and its information with government put hindrances in the middle-layer connectivity. Main issue in this layer is of within-government coordination and dealing with supply chain interest groups. Jan Dhan can help beneficiaries to have bank accounts.
Access:
Last-mile layer faces issues of lesser Bank penetration, mostly in rural areas. It deals with actual transfer of money from Bank to Beneficiary accounts. It also deals with issues of exclusion of genuine beneficiaries. Mobile can inform about benefits and also allow easier fund transfer.
Where next to spread JAM?
Economic Survey argues that policymakers should decide where to apply JAM based on two considerations of-
- Amount of leakages and,
- Control of the central government.
If amount of the leakages in a given scheme/area is huge then it can be next target for introduction of JAM as subsidies with higher leakages will have larger returns from introducing JAM. Similarly control of central government will reduce administrative challenges of co-ordination and political challenges of opposition by interest groups.
Based on these two criteria- leakages and central government control-Survey suggests fertilizer subsidies and within-government transfers as two most promising areas for introduction of the JAM.
JAM Preparedness Index:
Further economic survey has formulated JAM-Preparedness Indices for Urban and Rural areas in each state. It uses Aadhaar penetration, basic bank account penetration and Banking Correspondents (BC) density as indicators for the indices. It has also prepared Biometrically Authenticated Physical Update or BAPU-Preparedness Index, using Aadhaar penetration and Point of Sale machines as indicators, for each state and has compared Rural-JAM Preparedness Index with BAPU-Preparedness Index. It has found that many states are having higher scores in BAPU-Preparedness Index as compared to Rural JAM-Preparedness Index. Thus it suggests use of BAPU as short-term solution to reduce the leakages in these states, till states are well prepared for introduction of the JAM.
Conclusion:
Introduction of DBT in LPG and MGNREGS have proved that use of JAM can considerably reduce leakages, reduce idle funds, lower corruption and improve ease of doing business with the government. Despite huge improvements in financial inclusion due to Jan Dhan, JAM Preparedness indicators suggest that there is still long way to go. Center can invest in last-mile financial inclusion via further improving BC networks and promoting the spread of the mobile money. In the meantime models like BAPU can be used as an alternative to reduce the leakages.
NRHM -National Rural Health Mission
The National Rural Health Mission (NRHM) was launched in 2005 to improve the healthcare services, particularly in rural areas. NRHM has been subsumed as a Sub Mission of the overarching National Health Mission (NHM) with the National Urban Health Mission as the other Sub Mission. Under NHM, support to States/UTs is provided for five key components:-
(i) Health Systems Strengthening including infrastructure, human resource, drugs & equipment, ambulances, MMUs, ASHAs etc under NRHM and NUHM.
(ii) Reproductive, Maternal, Newborn, Child and Adolescent Health Services (RMNCH + A).
(iii) Communicable Disease Control Programmes
(iv) Non-Communicable Diseases Control Programme interventions upto District Hospital level.
(v) Infrastructure Maintenance- to support salary of ANMs and LHVs etc.
Steps to boost Make in India:-
A slew of steps, such as eliminating exemptions on countervailing duties on imports, monetisation of land owned by public sector companies and allowing industries to buy electricity directly from the markets, are needed to enable Make in India Initiative a success, according to the Economic Survey released on Friday.
The duty exemptions are favouring foreign producers over domestically made goods thus defeating the initiative, according to the government statement.
Parts of land belonging to the state-owned companies can be converted into land banks and used to promote Smart City initiatives. “If the land is in dense urban areas, it could be used to develop eco-systems to nurture start-ups, and if located in smaller towns and cities, it could be used to develop sites for industrial clusters.”
Industries with a high demand for power should be allowed to absorb the excess generation capacity through open access (OA). Consumers with electricity load above one MW are permitted by the OA policy (under the Electricity Act 2003) to procure power directly from electricity markets. Presently, the efficiency of electrical energy usage has fallen with an increase in power generation capacity not being able to be capitalised by distribution companies due their financial inability to purchase electricity.
The Make in India Initiative aims to transform India into a global manufacturing hub and increase the share of manufacturing in India’s GDP from a stagnant 15-16 per cent since 1980 to 25 per cent by 2022 and create an additional 100 million jobs.
On the issue of countervailing duty exemptions, the Economic Survey last year had also pointed out that the duties were not imposed on several items of imports. The survey had said the effective rate of excise on domestically-produced non-oil goods was about 9 per cent. Though the effective collection rate of CVDs should theoretically be the same, in real terms it was only around 6 per cent. This difference represents the fiscal cost to the government to the tune of around Rs.40,000 crore, the survey had said.
Eliminating policies — currently providing negative protection for Indian manufacturing and favouring foreign manufacturing — could be achieved by quickly implementing the Goods and Services Tax (GST), according to the survey. However, if delays are envisaged in rolling out the GST, a similar result could be achieved by eliminating the duty exemptions.
Another factor that could have an adverse effecton the Make in India Initiative will be India’s decision to join the US-led mega regional free trade pact called the Trans-Pacific Partnership (TPP) at a future date. Membership of the TPP would prevent the Indian government from using state-owned enterprises and government procurement as vehicles for achieving social and economic objectives, including employment generation, thereby have to compromise on the Make in India Initiative policy.
Poverty and Destitution:-
There is a difference between poverty and destitution, or what I call pauperism. In poverty, it is difficult to make ends meet. You somehow cope, do your level best to add to your income. In destitution, you are simply unable to cope.
Excerpts from the interview of Jan Breman :-
Where is the need for terms such as ‘pauper’ and ‘pauperism’ as analytical categories, when we already have ‘poverty’?
There is a difference between poverty and destitution, or what I call pauperism. In poverty, it is difficult to make ends meet. You somehow cope, do your level best to add to your income. So you also have your wife and children working along. In destitution, you are simply unable to cope. You are so utterly poor that it is difficult to even survive. And if you survive, you need outside support. Unfortunately, the poverty debate in India has more or less been appropriated by economists. So we look at income or consumption or employment levels, and not at the social or political dimension of poverty. A category such as ‘pauperism’ is needed to capture these non-economic aspects as well.
You argue in your book that India’s poverty line is a destitution line. Are you saying that those below poverty line in India are not poor but destitute?
Not all but a good number are. According to the National Commission for Enterprises in the Unorganised Sector (NCEUS), the poverty line fixed by the Planning Commission is a joke: 76 per cent of the Indian population is living in poverty. If you have such a vast mass of poor, you have to differentiate between levels of poverty. Certainly a big number is close to the poverty line. But in my estimate, about 25 per cent of India’s poor are destitute, or paupers.
So from an economist’s perspective, do we need another line, below the poverty line, to identify the paupers?
The poverty line is a sort of magical construction. If you cross it, you are suddenly out of poverty. So the policy focus is always on those who are able to go past that threshold. As a result, there is absolutely no interest in those at the bottom, those way beneath the poverty line.
So who is a pauper, in sociological terms?
In the first place, the paupers are the non-labouring poor, those who have no earning capacity. They never had or have lost their labour power and therefore can’t make a living. These include the elderly, the disabled, the chronically ill, but also widows with small children, divorcees without any support from others. Basically, in order to survive in poverty, you need a household. You cannot manage on your own because the flow of income varies with the seasons. You need to pull the household together to bring in the income — this is why you have child labour in India, isn’t it? But paupers also include the labouring poor, especially those whose income and employment are erratic or seasonal.
But Indian economists don’t believe in terms like ‘pauper’.
That’s true. It was only Gandhi who wrote about paupers in an article published in Young India in 1928, when he was in south Gujarat. He argued that we cannot fight colonialism if we do not fight colonialism in our own society. He pointed out that paupers had been around in India for a long time. I use the term pauper to evoke the conditions in Victorian England, where the casual poor were driven out of the countryside to work in the mills during the industrial revolution. In the same way, the casual poor are being driven out of the countryside in 21st century India.
England amended its Poor Laws in 1834 to pauperise the rural labour and drive them to the cities. What is India doing to create an exodus from the countryside?
Your agrarian crisis. Agriculture is not able to provide livelihood for the land-poor and the landless classes, who have lived in the villages from time immemorial. So they are forced to leave the villages. But the city doesn’t want them either.
How can you say the city doesn’t want them? India is building a hundred smart cities. Who will live in them if not migrants?
Talk to policymakers, talk to municipal officials of any city. They will tell you they don’t want the poor around, that they are a burden on our modern, beautified, smart cities. The policy of the municipality in every Indian city has been to periodically evict the poor.They try desperately to find employment but are unable to establish themselves even in the slums. They hang around in the labour chowks, they become pavement dwellers because there is no shelter for them in the night. When weeks pass by without any work at all, they go back to the villages. I use the term ‘circular migration’ to describe this movement — from villages to cities and back to villages, in an endless cycle. This is widespread in Bihar, Andhra Pradesh, Rajasthan, Uttar Pradesh, Tamil Nadu. But you find it in every State.
Can the poor in India hope for inclusive citizenship?
Citizenship is about rights and obligations. It is about being able to make claims on the state, and at the moment this is a privilege afforded by a minority of the Indian population. Also, inclusive citizenship not only means offering employment (inclusion in economic terms) but also creating space for them in terms of housing, health, schooling, skilling, and inclusion in social terms — which means focussing on equality. But we don’t see pro-equality policies, only pro-inequality policies. The mindset of the Indian elite is: the poor are different from me and I don’t want them around.
Sammakka-Sarakka Jatara:-Tribal Festival in Telengana
Unlike Bathukamma and Bonalu festivals that are celebrated across the state, the tribal festival of Sammakka-Sarakka Jatara sees the convergence of lakhs of people at one particular place — Medaram village in Warangal district. Every two years, the sleepy village comes alive for three days for the Medaram Jatara to commemorate the battle of a mother and daughter, Sammakka and Saralamma against an unjust law imposed by the reigning king.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.
Globally, around 80% of wastewater flows back into the ecosystem without being treated or reused, according to the United Nations.
This can pose a significant environmental and health threat.
In the absence of cost-effective, sustainable, disruptive water management solutions, about 70% of sewage is discharged untreated into India’s water bodies.
A staggering 21% of diseases are caused by contaminated water in India, according to the World Bank, and one in five children die before their fifth birthday because of poor sanitation and hygiene conditions, according to Startup India.
As we confront these public health challenges emerging out of environmental concerns, expanding the scope of public health/environmental engineering science becomes pivotal.
For India to achieve its sustainable development goals of clean water and sanitation and to address the growing demands for water consumption and preservation of both surface water bodies and groundwater resources, it is essential to find and implement innovative ways of treating wastewater.
It is in this context why the specialised cadre of public health engineers, also known as sanitation engineers or environmental engineers, is best suited to provide the growing urban and rural water supply and to manage solid waste and wastewater.
Traditionally, engineering and public health have been understood as different fields.
Currently in India, civil engineering incorporates a course or two on environmental engineering for students to learn about wastewater management as a part of their pre-service and in-service training.
Most often, civil engineers do not have adequate skills to address public health problems. And public health professionals do not have adequate engineering skills.
India aims to supply 55 litres of water per person per day by 2024 under its Jal Jeevan Mission to install functional household tap connections.
The goal of reaching every rural household with functional tap water can be achieved in a sustainable and resilient manner only if the cadre of public health engineers is expanded and strengthened.
In India, public health engineering is executed by the Public Works Department or by health officials.
This differs from international trends. To manage a wastewater treatment plant in Europe, for example, a candidate must specialise in wastewater engineering.
Furthermore, public health engineering should be developed as an interdisciplinary field. Engineers can significantly contribute to public health in defining what is possible, identifying limitations, and shaping workable solutions with a problem-solving approach.
Similarly, public health professionals can contribute to engineering through well-researched understanding of health issues, measured risks and how course correction can be initiated.
Once both meet, a public health engineer can identify a health risk, work on developing concrete solutions such as new health and safety practices or specialised equipment, in order to correct the safety concern..
There is no doubt that the majority of diseases are water-related, transmitted through consumption of contaminated water, vectors breeding in stagnated water, or lack of adequate quantity of good quality water for proper personal hygiene.
Diseases cannot be contained unless we provide good quality and adequate quantity of water. Most of the world’s diseases can be prevented by considering this.
Training our young minds towards creating sustainable water management systems would be the first step.
Currently, institutions like the Indian Institute of Technology, Madras (IIT-M) are considering initiating public health engineering as a separate discipline.
To leverage this opportunity even further, India needs to scale up in the same direction.
Consider this hypothetical situation: Rajalakshmi, from a remote Karnataka village spots a business opportunity.
She knows that flowers, discarded in the thousands by temples can be handcrafted into incense sticks.
She wants to find a market for the product and hopefully, employ some people to help her. Soon enough though, she discovers that starting a business is a herculean task for a person like her.
There is a laborious process of rules and regulations to go through, bribes to pay on the way and no actual means to transport her product to its market.
After making her first batch of agarbathis and taking it to Bengaluru by bus, she decides the venture is not easy and gives up.
On the flipside of this is a young entrepreneur in Bengaluru. Let’s call him Deepak. He wants to start an internet-based business selling sustainably made agarbathis.
He has no trouble getting investors and to mobilise supply chains. His paperwork is over in a matter of days and his business is set up quickly and ready to grow.
Never mind that the business is built on aggregation of small sellers who will not see half the profit .
Is this scenario really all that hypothetical or emblematic of how we think about entrepreneurship in India?
Between our national obsession with unicorns on one side and glorifying the person running a pakora stall for survival as an example of viable entrepreneurship on the other, is the middle ground in entrepreneurship—a space that should have seen millions of thriving small and medium businesses, but remains so sparsely occupied that you could almost miss it.
If we are to achieve meaningful economic growth in our country, we need to incorporate, in our national conversation on entrepreneurship, ways of addressing the missing middle.
Spread out across India’s small towns and cities, this is a class of entrepreneurs that have been hit by a triple wave over the last five years, buffeted first by the inadvertent fallout of demonetization, being unprepared for GST, and then by the endless pain of the covid-19 pandemic.
As we finally appear to be reaching some level of normality, now is the opportune time to identify the kind of industries that make up this layer, the opportunities they should be afforded, and the best ways to scale up their functioning in the shortest time frame.
But, why pay so much attention to these industries when we should be celebrating, as we do, our booming startup space?
It is indeed true that India has the third largest number of unicorns in the world now, adding 42 in 2021 alone. Braving all the disruptions of the pandemic, it was a year in which Indian startups raised $24.1 billion in equity investments, according to a NASSCOM-Zinnov report last year.
However, this is a story of lopsided growth.
The cities of Bengaluru, Delhi/NCR, and Mumbai together claim three-fourths of these startup deals while emerging hubs like Ahmedabad, Coimbatore, and Jaipur account for the rest.
This leap in the startup space has created 6.6 lakh direct jobs and a few million indirect jobs. Is that good enough for a country that sends 12 million fresh graduates to its workforce every year?
It doesn’t even make a dent on arguably our biggest unemployment in recent history—in April 2020 when the country shutdown to battle covid-19.
Technology-intensive start-ups are constrained in their ability to create jobs—and hybrid work models and artificial intelligence (AI) have further accelerated unemployment.
What we need to focus on, therefore, is the labour-intensive micro, small and medium enterprise (MSME). Here, we begin to get to a definitional notion of what we called the mundane middle and the problems it currently faces.
India has an estimated 63 million enterprises. But, out of 100 companies, 95 are micro enterprises—employing less than five people, four are small to medium and barely one is large.
The questions to ask are: why are Indian MSMEs failing to grow from micro to small and medium and then be spurred on to make the leap into large companies?
At the Global Alliance for Mass Entrepreneurship (GAME), we have advocated for a National Mission for Mass Entrepreneurship, the need for which is more pronounced now than ever before.
Whenever India has worked to achieve a significant economic milestone in a limited span of time, it has worked best in mission mode. Think of the Green Revolution or Operation Flood.
From across various states, there are enough examples of approaches that work to catalyse mass entrepreneurship.
The introduction of entrepreneurship mindset curriculum (EMC) in schools through alliance mode of working by a number of agencies has shown significant improvement in academic and life outcomes.
Through creative teaching methods, students are encouraged to inculcate 21st century skills like creativity, problem solving, critical thinking and leadership which are not only foundational for entrepreneurship but essential to thrive in our complex world.
Udhyam Learning Foundation has been involved with the Government of Delhi since 2018 to help young people across over 1,000 schools to develop an entrepreneurial mindset.
One pilot programme introduced the concept of ‘seed money’ and saw 41 students turn their ideas into profit-making ventures. Other programmes teach qualities like grit and resourcefulness.
If you think these are isolated examples, consider some larger data trends.
The Observer Research Foundation and The World Economic Forum released the Young India and Work: A Survey of Youth Aspirations in 2018.
When asked which type of work arrangement they prefer, 49% of the youth surveyed said they prefer a job in the public sector.
However, 38% selected self-employment as an entrepreneur as their ideal type of job. The spirit of entrepreneurship is latent and waiting to be unleashed.
The same can be said for building networks of successful women entrepreneurs—so crucial when the participation of women in the Indian economy has declined to an abysmal 20%.
The majority of India’s 63 million firms are informal —fewer than 20% are registered for GST.
Research shows that companies that start out as formal enterprises become two-three times more productive than a similar informal business.
So why do firms prefer to be informal? In most cases, it’s because of the sheer cost and difficulty of complying with the different regulations.
We have academia and non-profits working as ecosystem enablers providing insights and evidence-based models for growth. We have large private corporations and philanthropic and funding agencies ready to invest.
It should be in the scope of a National Mass Entrepreneurship Mission to bring all of them together to work in mission mode so that the gap between thought leadership and action can finally be bridged.
Heat wave is a condition of air temperature which becomes fatal to human body when exposed. Often times, it is defined based on the temperature thresholds over a region in terms of actual temperature or its departure from normal.
Heat wave is considered if maximum temperature of a station reaches at least 400C or more for Plains and at least 300C or more for Hilly regions.
a) Based on Departure from Normal
Heat Wave: Departure from normal is 4.50C to 6.40C
Severe Heat Wave: Departure from normal is >6.40C
b) Based on Actual Maximum Temperature
Heat Wave: When actual maximum temperature ≥ 450C
Severe Heat Wave: When actual maximum temperature ≥470C
If above criteria met at least in 2 stations in a Meteorological sub-division for at least two consecutive days and it declared on the second day
It is occurring mainly during March to June and in some rare cases even in July. The peak month of the heat wave over India is May.
Heat wave generally occurs over plains of northwest India, Central, East & north Peninsular India during March to June.
It covers Punjab, Haryana, Delhi, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Odisha, Madhya Pradesh, Rajasthan, Gujarat, parts of Maharashtra & Karnataka, Andhra Pradesh and Telengana.
Sometimes it occurs over Tamilnadu & Kerala also.
Heat waves adversely affect human and animal lives.
However, maximum temperatures more than 45°C observed mainly over Rajasthan and Vidarbha region in month of May.
a. Transportation / Prevalence of hot dry air over a region (There should be a region of warm dry air and appropriate flow pattern for transporting hot air over the region).
b. Absence of moisture in the upper atmosphere (As the presence of moisture restricts the temperature rise).
c. The sky should be practically cloudless (To allow maximum insulation over the region).
d. Large amplitude anti-cyclonic flow over the area.
Heat waves generally develop over Northwest India and spread gradually eastwards & southwards but not westwards (since the prevailing winds during the season are westerly to northwesterly).
The health impacts of Heat Waves typically involve dehydration, heat cramps, heat exhaustion and/or heat stroke. The signs and symptoms are as follows:
1. Heat Cramps: Ederna (swelling) and Syncope (Fainting) generally accompanied by fever below 39*C i.e.102*F.
2. Heat Exhaustion: Fatigue, weakness, dizziness, headache, nausea, vomiting, muscle cramps and sweating.
3. Heat Stoke: Body temperatures of 40*C i.e. 104*F or more along with delirium, seizures or coma. This is a potential fatal condition.
Norman Borlaug and MS Swaminathan in a wheat field in north India in March 1964
Political independence does not have much meaning without economic independence.
One of the important indicators of economic independence is self-sufficiency in food grain production.
The overall food grain scenario in India has undergone a drastic transformation in the last 75 years.
India was a food-deficit country on the eve of Independence. It had to import foodgrains to feed its people.
The situation became more acute during the 1960s. The imported food had to be sent to households within the shortest possible time.
The situation was referred to as ‘ship to mouth’.
Presently, Food Corporation of India (FCI) godowns are overflowing with food grain stocks and the Union government is unable to ensure remunerative price to the farmers for their produce.
This transformation, however, was not smooth.
In the 1960s, it was disgraceful, but unavoidable for the Prime Minister of India to go to foreign countries with a begging bowl.
To avoid such situations, the government motivated agricultural scientists to make India self-sufficient in food grain production.
As a result, high-yield varieties (HYV) were developed. The combination of seeds, water and fertiliser gave a boost to food grain production in the country which is generally referred to as the Green Revolution.
The impact of the Green Revolution, however, was confined to a few areas like Punjab, Haryana, western Uttar Pradesh in the north and (unified) Andhra Pradesh in the south.
Most of the remaining areas were deficit in food grain production.
Therefore the Union government had to procure food grain from surplus states to distribute it among deficit ones.
At the time, farmers in the surplus states viewed procurement as a tax as they were prevented from selling their surplus foodgrains at high prices in the deficit states.
As production of food grains increased, there was decentralisation of procurement. State governments were permitted to procure grain to meet their requirement.
The distribution of food grains was left to the concerned state governments.
Kerala, for instance, was totally a deficit state and had to adopt a distribution policy which was almost universal in nature.
Some states adopted a vigorous public distribution system (PDS) policy.
It is not out of place to narrate an interesting incident regarding food grain distribution in Andhra Pradesh. The Government of Andhra Pradesh in the early 1980s implemented a highly subsidised rice scheme under which poor households were given five kilograms of rice per person per month, subject to a ceiling of 25 kilograms at Rs 2 per kg. The state government required two million tonnes of rice to implement the scheme. But it received only on one million tonne from the Union government.
The state government had to purchase another million tonne of rice from rice millers in the state at a negotiated price, which was higher than the procurement price offered by the Centre, but lower than the open market price.
A large number of studies have revealed that many poor households have been excluded from the PDS network, while many undeserving households have managed to get benefits from it.
Various policy measures have been implemented to streamline PDS. A revamped PDS was introduced in 1992 to make food grain easily accessible to people in tribal and hilly areas, by providing relatively higher subsidies.
Targeted PDS was launched in 1997 to focus on households below the poverty line (BPL).
Antyodaya Anna Yojana (AAY) was introduced to cover the poorest of the poor.
Annapoorna Scheme was introduced in 2001 to distribute 10 kg of food grains free of cost to destitutes above the age of 65 years.
In 2013, the National Food Security Act (NFSA) was passed by Parliament to expand and legalise the entitlement.
Conventionally, a card holder has to go to a particular fair price shop (FPS) and that particular shop has to be open when s/he visits it. Stock must be available in the shop. The card holder should also have sufficient time to stand in the queue to purchase his quota. The card holder has to put with rough treatment at the hands of a FPS dealer.
These problems do not exist once ration cards become smart cards. A card holder can go to any shop which is open and has available stocks. In short, the scheme has become card holder-friendly and curbed the monopoly power of the FPS dealer. Some states other than Chhattisgarh are also trying to introduce such a scheme on an experimental basis.
More recently, the Government of India has introduced a scheme called ‘One Nation One Ration Card’ which enables migrant labourers to purchase rations from the place where they reside. In August 2021, it was operational in 34 states and Union territories.
The intentions of the scheme are good but there are some hurdles in its implementation which need to be addressed. These problems arise on account of variation in:
It is not clear whether a migrant labourer gets items provided in his/her native state or those in the state s/he has migrated to and what prices will s/he be able to purchase them.
The Centre must learn lessons from the experiences of different countries in order to make PDS sustainable in the long-run.
For instance, Sri Lanka recently shifted to organic manure from chemical fertiliser without required planning. Consequently, it had to face an acute food shortage due to a shortage of organic manure.
Some analysts have cautioned against excessive dependence on chemical fertiliser.
Phosphorus is an important input in the production of chemical fertiliser and about 70-80 per cent of known resources of phosphorus are available only in Morocco.
There is possibility that Morocco may manipulate the price of phosphorus.
Providing excessive subsidies and unemployment relief may make people dependent, as in the case of Venezuela and Zimbabwe.
It is better to teach a person how to catch a fish rather than give free fish to him / her.
Hence, the government should give the right amount of subsidy to deserving people.
The government has to increase livestock as in the case of Uruguay to make the food basket broad-based and nutritious. It has to see to it that the organic content in the soil is adequate, in order to make cultivation environmentally-friendly and sustainable in the long-run.
In short, India has transformed from a food-deficit state to a food-surplus one 75 years after independence. However, the government must adopt environmental-friendly measures to sustain this achievement.