Skip to main content

Gujarat has higher percentage of households without any assets than national average: Crisil report

By Rajiv Shah
Amidst considerable hallabaloo around top rating agency Crisil’s rating of Gujarat as No 3 – next only to Punjab and Kerala – both in prosperity index and in equity index (click HERE), what appears to have been missed is an important observation in its new Insight report, brought out in November 2013. The report says that, in Gujarat, 18.7 per cent of the households do not have “any assets”, which is less than the national average of 17.8 per cent. For the sake of analysis, Crisil – which bases its data on household survey of the Census of India 2011 – has divided households into two categories, those who have “all the assets” and those who do not have “any assets.”
Those who have “all the assets” must have television, computer or laptop, telephone or mobile phone and two-wheeler or car or jeep; and those who do not have “any assets” neither radio nor bicycle in addition to the above four assets. Also significant is that, Gujarat’s 6.3 per cent of the households are found to have “all the assets”, which is lower than Punjab (10 per cent), Kerala (8.6 per cent), Haryana (7.0 per cent) and Haryana (7.2 per cent). Tamil Nadu equals Gujarat with 6.3 per cent of the population with “all the assets.” Crisis has selected a group of 16 states for the sake of its analysis.
City is capital city (Ahmedabad for Gujarat, Gurgaon for Haryana)
A further analysis by the top rating agency suggests that that, leaving aside the “capital city” of Gujarat (Crisil considers Ahmedabad and not Gandhinagar as the capital city), in rest of the state, 20.2 per cent of the households do not have “any assets”. This is higher than several states’ comparable figures – Punjab (4.5 per cent), Kerala (4.6 per cent), Karnataka (16.8 per cent), Tamil Nadu (19.4 per cent), Maharasthra (19.4 per cent), and Andhra Pradesh (20.1 per cent). Even in the case of capital city (Ahmedabad), if Crisil has to be believed, the capital cities of seven out of 16 major states have lower number of households without “any assets”.
Similarly, as for the households which have “all the assets” in “rest of the state” (minus the capital city, Ahmedabad), Gujarat’s percentage comes to a mere five, as against the respective figures Punjab 9.4, Kerala 8.3, Haryana 7.5, Maharashtra 7.0 and Tamil Nadu 5.2. Further, Ahmedabad has 15.3 per cent of the households with “all the assets” as against the capital cities of at least five other states having a higher number of households under this category – Haryana 27.1, Tamil Nadu 23.9, Karnataka 23.6, Andhra Pradesh 22.7 and Maharashtra 15.7.
Despite such variations, the Crisil Insight report points out, “In our analysis, Gujarat emerges as a prosperous state with high ownership of durables. But the difference between Ahmedabad and the rest of the state is borderline between high and low equality. It will be interesting to repeat this study after a few years to see whether or not Gujarat evolves to achieve equitable growth.” The statement has not been elaborated any further. Like for Gujarat, for Haryana, the Crisis report has taken Gurgaon as “proxy for capital city”, instead of Chandigarh!
Interestingly, Crisil while working out its prosperity Index and the equality Index – which measure and compare living standards between and within India’s large states – uses census data only partially. For some strange reason, while looking into the “ownership pattern of consumer durables such as television, mobile phone, bicycles, computer/laptop and automobiles”, it gives a “quick caveat” – that it has not factored “financial assets, housing, education and health parameters, which are also used to measure standard of living”! National Sample Survey data suggest that Gujarat’s households spend lesser proportion of income on health, education and entertainment than on food.

Yet, the report claims, “Crisil’s indices help assess standard of living across states in a more meaningful way compared with the traditional yardstick of average income per person.” It explains, “That’s because average income can hide gaping differences in living standards because of unequal distribution across the populace. For example, Maharashtra has 30 per cent more real income per person, but Punjab has more widespread ownership of consumer durables, and hence is more prosperous.”
Further, Crisil has “excluded” special category states such as Jammu & Kashmir, Uttarakhand and other North Eastern states where Central transfers could allegedly “influence incomes and high asset ownership, therefore, may not reflect underlying economic development”. Further, it says, “Delhi was excluded because it’s a city-state.” It has also excluded Goa as “there’s no detailed data on the state.”
Crisil says, “Maharashtra has the highest level of real income per person (per-person state gross domestic product at 2004-05 prices) among major Indian states. But the penetration of household ownership of durable assets in the state is lower than six others, including Punjab and Gujarat.” It further says, “Punjab ranks 7th in per-person real income, but has the highest asset ownership levels, closely followed by Kerala. Punjab has the highest proportion of households with all durables including a computer (10 in every 100) and the lowest proportion of households with no durable asset, not even a mobile or a bicycle (just over 4 in every 100).”
Crisil comments, “This widespread ownership makes Punjab the most prosperous state. Punjab and Kerala also have the least disparity in asset ownership between their capital cities and the rest of the state.” At the same time, it says, “There is significant disparity in living standards within Maharashtra, Andhra Pradesh and Karnataka. For example, only one in every 33 households in Hyderabad doesn’t own a durable, but as high as one in five outside Hyderabad does not have an asset”, adding, “Growth in these states has been driven by financial or IT/ITES services that have selectively benefited the skilled workforce in the capital city, resulting in high disparity in living standards.”
State-wise comparison
The Crisil study has found Madhya Pradesh as “the least prosperous state”. It adds, “Moreover, there is large disparity in living standards among households in Bhopal, as well as between Bhopal and the rest of the state. For example, 15 per cent of households in the capital have all assets, which is comparable to Mumbai. However, over 12 per cent of households in Bhopal have no durables assets compared with a 2.2 per cent in Mumbai.”
The study says, “Among major capital cities, more than 1 in 5 households in Gurgaon (a proxy for capital city for Haryana), Chennai, Hyderabad and Bangalore own all major durables including a laptop or a computer. At the other extreme, less than 1 in 20 households in Raipur – the capital of Chhattisgarh – own all the durables. Patna and Raipur, the capital cities of Bihar and Chhattisgarh, respectively, are the worst in terms of asset ownership. These cities have the highest proportion of households with none of the assets (around 1 in 4 households) as well as the lowest proportion of households with all the assets (less than 1 in 16 households).”

Comments

TRENDING

Rescind Gates Foundation award to Modi, demand three Nobel Peace laureates

Counterview Desk
In a major boost to those opposing the award to the Gates Foundation’s proposed to be awarded to Prime Minister Narendra Modi for his Swacch Bharat Abhiyan, three Nobel Peace Prize laureates, Mairead Maguire (1976), Tawakkol Abdel-Salam Karman (2011) and Shirin Ebadi (2003), have in an open letter called upon Milinda and Bill Gates to withdraw their decision, stating Modi is allegedly involved in human rights violations.

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Report on "torture" in Kashmir jails: 44% detainees stripped naked, 29% electrocuted

Counterview Desk
A recent report titled “Torture: Indian State’s Instrument of Control in Indian-administered Jammu & Kashmir”, published by the Association of Parents of Disappeared Persons (APDP), has claimed to build “on the body of human rights documentation on torture” in Jammu and Kashmir (J&K) through an examination of 432 case studies. It seeks to focus on "the trends and patterns, targets, perpetrators, contexts and impact of torture" in the state.

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…

Bullet train impact report Japan agency property: Govt of India tells Gujarat NGO

The National High Speed Rail Corporation Limited (NHSRCL) has told Gujarat-based environmental organization, Paryavaran Suraksha Samiti (PSS) that the detailed report of Japanese International Cooperation Agency (JICA) representatives on their visit to Gujarat and Maharashtra assess the impact of the Mumbai-Ahmedabad bullet train project on farmers is not its property, but that of JICA.

NHSRCL letter to PSS, signed by activists Rohit Prajapati, Krishnakant and Swati Desai, comes following the latter’s request to it on June 10 for the report. PSS was one of the NGOs that represented JICA on the project, saying, if implemented, it would adversely impact farmers, even as pointing towards the fact that the project itself is unviable and Indian Railways needs to invest, instead, more on upgrading the present railway infrastructure.
Following the NHSRCL reply, PSS has shot a second letter to JICA, insisting that the latter should share a copy of the report, even as providing details of the …

Karma tribal festival an occasional to campaign for tribal rights: IPMSDL

By Our Representative
The International Indigenous Peoples Movement for Self Determination and Liberation (IPMSDL), in a solidarity statement has suggested that the current Karam festival of Central India -- which seeks to promote sisterhood, friendship, cultural unity, and closer link to nature -- should be the occasion to campaign against alleged efforts to violently drive away forest dwelling communities from their forest homes.
"Millions are threatened to lose lands and livelihood under the implementation of Forest Rights Act (FRA) of 2006", the statement States, adding, "As corporate interests continues to enter tribal territories and extract profit from its natural resources, indigenous people are pushed to further marginalization and discrimination."
Asserting that indigenous movement in India "remains steadfast in keeping their culture, deeply linked to their lands alive by carrying out their heritage and struggles", IPMSDL, even as extending "…

Allow international human rights observers, media to access Kashmir: US lawmakers

Counterview Desk
In a letter to US Secretary of State Mike Pompeo, two members of the American Congress, Pramila Jayapal and James McGovern, raising "significant concerns" about what they call "humanitarian and human rights crisis in Jammu & Kashmir”, quoting "credible reports" from journalists and advocates on the ground" have said that "the Indian government has detained thousands of people with no recourse, imposed de facto curfews on residents' and cut off internet and telephone access in the region.”

Amidst Modi celebrations, thousands protest 'massive' submergence in Narmada Valley

By Our Representative
Thousands of women and men gathered on at the Shaheed Stambh in Badwani, Madhya Pradesh, to raise their voice against what they called "the destruction of the Narmada Valley", protesting against Prime Minister Narendra Modi and Gujarat BJP rulers for celebrating the Sardar Sarovar dam being filled up to the full reservoir level (FRL) on September 17, which also happens to be Modi's birthday.
Calling it a black day for the people of the Valley, whose villages and farms got submerged because of highest-ever water level having been achieved in the dam, the Narmada Bachao Andolan (NBA), which organised the parallel rally across the border with Gujarat, regretted in a statement that Modi's celebration at the dam took place amidst " martyrdom of the Valley".
The demonstration in Badwani was preceded by a vehicles rally, which took rounds of the city streets. They were joined by people from several villages of Dhar district. They gather…

Kandla Port Trust activities 'destroyed' mangroves, affecting rare camel species: NGT

By Rajiv Shah
Taking serious note of large-scale destruction of mangroves on about 750 acres in Bhachau taluka of Kutch district, the National Green Tribunal (NGT), Delhi, has “directed” the Gujarat government, its forest department, and the Gujarat Coastal Zone Management Authority (GSZMA), to “jointly inspect the area” and fix responsibility as to who is “responsible for obstruction of the creeks” next to the Kandla Port Trust (KPT), leading to the damage to the plantations in the area.

Narmada valley: SC notice to Gujarat, MP, M'rashtra on submergence sans rehabilitation

By Our Representative
Thr Supreme Court has issued notice to Gujarat, Madhya Pradesh and Maharashtra governments following a Narmada Bachao Andolan (NBA)-backed petition seeking the explanation as to whether large areas of Narmada Valley have gone into submergence by filling up the Sardar Sarovar dam up to the full reservoir level (FRL) without rehabilitating the project affected families (PAFs).