Development model? Half of Indian states' households have higher purchasing power than Gujarat: NSS

By Rajiv Shah

In what many may consider as another “expose” of the Gujarat development model sought to be sold across the country during the Lok Sabha elections, the latest National Sample Survey Organisation (NSSO) report, “Level and Pattern of Consumer Expenditure, 2011-12”, released in February 2014, has revealed that the average spending capacity of Gujarat households, as reflected in monthly per capita expenditure (MPCE), is lower than 11 out of 20 major states in the rural areas and nine out of 20 major states in the urban areas.

The figures suggest that at the MPCE of Rs 1,536, spending capacity of Gujarat’s rural households is lower than Andhra Pradesh (Rs 1,754), Haryana (Rs 2,176), Himachal Pradesh (Rs 2,034), Jammu & Kashmir (Rs 1,743), Karnataka (Rs 1,561), Kerala (2,669), Maharashtra (Rs 1,619), Punjab (Rs 2,345), Rajasthan (Rs 1,598), Tamil Nadu (Rs 1,693), and Uttarakhand (Rs 1,726). The all-India average for the rural areas, on account of even lower spending capacity in poorer states, is lower than Gujarat’s – Rs 1,430.
As for the urban areas, things are not quite different, with Gujarat ranking at No 10th with the households’ average spending capacity, reflected in MPCE, being Rs 2581. This is less than that of Andhra Pradesh (Rs 2,685), Haryana (3,817), Himachal Pradesh (Rs 3,259), Karnataka (Rs 3,026), Kerala (Rs 3,408), Maharashtra (Rs 3,189), Punjab (Rs 2,794), Tamil Nadu (Rs 2,622) and West Bengal (Rs 2,591). As for the all-India average, despite lower purchasing power in the poorer states, the urban MPCE higher than Gujarat’s -- Rs 2,630.

What is particularly appalling is that, with lower purchasing power, Gujarat’s households are forced to spend a higher percentage of their earnings on foodgrains. Thus, the figures show that, in rural Gujarat, on an average, 55 per cent of the spending go into foodgrains consumption, which means that they are forced to spend considerably less on non-foodgrains, including education, health, consumer durables, and entertainment.
The states whose households spend higher percentage than Gujarat in the rural areas on foodgrains, significantly, are mainly five poorer states -- Assam (61 per cent), Bihar (59 per cent), Jharkhand (58 per cent), Odisha (57 per cent), and West Bengal (58 per cent). The all-India average percentage of spending on foodgrains is 53 per cent – lower than Gujarat’s.
Things are, in fact, worse in urban areas, whose Gujarat households on an average spend 45 per cent of their spending on foodgrains. The states whose urban area households spend more than Gujarat are just three -- Assam (48 per cent), Bihar (51 per cent), and Jharkhand (47 per cent), with Rajasthan and Odisha equaling Gujarat (45 per cent). The all-India average on this score is 43 per cent, less than that of Gujarat.
Coming to the cereals – which are the main source of nutrition in the absence of non-vegetarian food – the data show that Gujarat’s just eight per cent of the rural spending go into expenditure on cereals, as against the all-India average of 11 per cent. The situation is not very different for the urban areas, where just six per cent of the spending goes in for cereals, as against the all-India average of seven per cent.

In the absence of non-vegetarian food, on which Gujarat’s households just spend about Rs 24 per capita in rural areas and Rs 30 in urban areas (as against the all-India average of Rs 68 and 96 respectively), they are forced to spend a higher sum on milk and milk products – Rs 196 in rural areas (all-India average Rs 115) and Rs 267 in urban areas (all-India average Rs 184). As for fruits and vegetables, the spending is nearer to the all-India average.
Even more interesting is the fact that, NSSO data suggest, Gujarat’s rural as well as urban population is forced to spend a higher amount on cheaper cereals. To quote from the report, in the country as a whole, “rice and wheat together accounted for as much as 97 per cent of all cereal consumption in urban areas, and for 94 per cent in rural areas.”
To quote, “In rural India, the share of cereals other than rice and wheat was 3 per cent or less in all major States except Gujarat (32 per cent), Karnataka (27 per cent), Maharashtra (20 per cent), Rajasthan (19 per cent), and Madhya Pradesh (6 per cent). In urban India cereals other than rice and wheat accounted for 3 per cent or less of total cereal consumption in all but 3 major States – Karnataka (18 per cent), Gujarat (9 per cent) and Maharashtra (8 per cent).”

Comments

What's Bill Gates up to? Have 'irregularities' found in funding HPV vaccine trials faded?

By Colin Gonsalves* After having read the 72nd report of the Department Related Parliamentary Standing Committee on alleged irregularities in the conduct of studies using HPV vaccines by PATH in India, it was startling to see Bill Gates bobbing his head up and down and smiling ingratiatingly on prime time television while the Prime Minister lectured him in Hindi on his plans for the country.

Bill Gates as funder, author, editor, adviser? Data imperialism: manipulating the metrics

By Dr Amitav Banerjee, MD* When Mahatma Gandhi on invitation from Buckingham Palace was invited to have tea with King George V, he was asked, “Mr Gandhi, do you think you are properly dressed to meet the King?” Gandhi retorted, “Do not worry about my clothes. The King has enough clothes on for both of us.”

Displaced from Bangladesh, Buddhist, Hindu groups without citizenship in Arunachal

By Sharma Lohit Buddhist Chakma and Hindu Hajongs were settled in the 1960s in parts of Changlang and Papum Pare district of Arunachal Pradesh after they had fled Chittagong Hill Tracts of present Bangladesh following an ethnic clash and a dam disaster. Their original population was around 5,000, but at present, it is said to be close to one lakh.

Muted profit margins, moderate increase in costs and sales: IIM-A survey of 1000 cos

By Our Representative The Indian Institute of Management-Ahmedabad’s (IIM-A's) latest Business Inflation Expectations Survey (BIES) has said that the cost perceptions data obtained from India’s business executives suggests that there is “mild increase in cost pressures”.

Anti-Rupala Rajputs 'have no support' of numerically strong Kshatriya communities

By Rajiv Shah Personally, I have no love lost for Purshottam Rupala, though I have known him ever since I was posted as the Times of India representative in Gandhinagar in 1997, from where I was supposed to do political reporting. In news after he made the statement that 'maharajas' succumbed to foreign rulers, including the British, and even married off their daughters them, there have been large Rajput rallies against him for “insulting” the community.

Govt putting India's professionals, skilled, unskilled labour 'at mercy of' big business

By Thomas Franco, Dinesh Abrol* As it is impossible to refute the report of the International Labour Organisation, Chief Economic Advisor Anantha Nageswaran recently said that the government cannot solve all social, economic problems like unemployment and social security. He blamed the youth for not acquiring enough skills to get employment. Then can’t the people ask, ‘Why do we have a government? Is it not the government’s responsibility to provide adequate employment to its citizens?’

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor* Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah* The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Youth as game changers in Lok Sabha polls? Young voter registration 'is so very low'

By Dr Mansee Bal Bhargava* Young voters will be the game changers in 2024. Do they realise this? Does it matter to them? If it does, what they should/must vote for? India’s population of nearly 1.3 billion has about one-fifth 19.1% as youth. With 66% of its population (808 million) below the age of 35, India has the world's largest youth population. Among them, less than 40% of those who turned 18 or 19 have registered themselves for 2024 election. According to the Election Commission of India (ECI), just above 1.8 crore new voters (18-and 19-year-olds) are on the electoral rolls/registration out of the total projected 4.9 crore new voters in this age group.

IMA vs Ramdev: Why what's good or bad for goose should be good or bad for gander

By Dr Amitav Banerjee, MD* Baba Ramdev and his associate Balkrishna faced the wrath of the Supreme Court for their propaganda about their Ayurvedic products and belittling mainstream medicine. Baba Ramdev had to apologize in court. His apology was not accepted and he may face the contempt of court with harsher punishment. The Supreme Court acted on a public interest litigation (PIL) moved by the Indian Medical Association (IMA).

Counterview

Search This Blog