Financial inclusion under Jan Dhan? Gujarat under Modi a poor performer compared to all-India average

By Rajiv Shah
Prime Minister Narendra Modi has launched his ambitious Jan Dhan project by “enrolling”, according to an official claim, about 1.5 crore Indians as new bank account holders. But what is most interesting is that during his stewardship as chief minister, Gujarat remained a poor performer vis-à-vis several major states in financial inclusion – which is what Modi is seeking to "promote" by targeting around 10 crore people across India as new account holders by the next Republic Day. A report by the top consultants, Crisil, prepared in alliance with American agency Standard & Poor, released in January 2014, said Gujarat’s financial inclusion (Inclusix) index was below national average.
The report, sponsored by the Union ministry of finance, has reached this conclusion on the basis of an analysis of performance of all Indian states in three critical areas of banking services -- branch penetration, deposit penetration, and credit penetration. Titled “Crisil Inclusix: An Index to Measure India’s Progress on Financial Inclusion”, this was the second report in a year brought out by India’s authoritative consulting firm.
Basing on Inclusix index – a special term coined to identify financial inclusion – the report said that found that Gujarat not only slipped its ranking from the 17th position in 2009 to 18th in 2011 and further to 19th in 2012 among 35 Indian states. The state’s Inclusix score in 2012 was found to be 40.6 on a scale of 100 — which was 2.2 points below the national average of 42.8. India’s financial index registered an improvement by 2.7 in 2012, compared to 2011, when it was 40.1. As against this, Gujarat’s financial inclusion index improved by just 2.0.
Worse, the data suggest, of the 26 Gujarat districts analysed by the top consulting firm, only 10 districts were able to perform better than the national average (42.8). These districts are Porbandar (56.8), Vadodara, (54.1), Jamnagar (51.6), Navsari (50.4), Ahmedabad (50.3), Kutch (45.8), Anand (46.8), Rajkot (46.4), Bharuch (45.4), and Amreli (44.1). Even the state capital, Gandhinagar, being projected by the powers that be as the “role model” township for other states to follow in financial development, could score below the national average with 42.7.
While none of Gujarat districts could make it to the top 50 best performing districts, its backward districts continued to show poor performance. Thus, the predominantly tribal district of Dahod scored 22.7 on a scale of 100, the worst in Gujarat, ranking 571 among 638 Indian districts. The score of other backward districts was -- Banaskantha, scoring 23.4, and ranking 560; Panchmahals, scoring 25.3, and ranking 532; Tapi, scoring 26.4, and ranking No 515, and so on. Each of these districts has considerable tribal population.
What should be noticeably a matter of concern for the state policy makers is that such poor performance was registered when Gujarat was being projected as the “financial hub” of India, which is why Modi came up with the Gujarat International Finance Tec-city (GIFT) project next to Gandhinagar as one of the smart cities exclusively devoted to exclusively to finance with huge aims to“rival” Singapore, Dubai, even London and New York. Two major districts with considerable industrial presence Surat, Gujarat’s second biggest city, scored 35.0 Inclusix index, ranking 340.
Major states which performed better than Gujarat were – Kerala, with a score of 80.4, double that of Gujarat, Delhi (78.2), Andhra Pradesh (64.8), Tamil Nadu (64.8), Karnataka (61.4), Himachal Pradesh (58.4), Punjab (56.8), Uttarakhand (52.4), Haryana (49.3), Orissa (43.3) and Maharashtra (40.7). Interestingly, the study shows that out of 35 Indian states (both major and minor), as many as 22 of them showed a better improvement in their score in 2012 over 2011, as compared to that of Gujarat. While Gujarat registered an improvement of 2.0 in its Inclusix index, Delhi registered an improvement of 14.0, Kerala 4.3, Tamil Nadu 4.2, Karnataka 4.2, Andhra Pradesh 3.5, Karnataka 3.7, Andhra Pradesh 3.5, Maharashtra 3.2, Madhya Pradesh 3.2, Jammu & Kashmir 3.1, Odisha 2.8, West Bengal 2.5, Assam 2.2 and Rajasthan 2.1.
The Crisil report said, India’s score of 42.8 on a scale of 100 reflects “under-penetration of formal banking in the country.” It underlines, “Just one in two Indians have a bank savings account, and one in seven access to bank credit.” It points towards “wide regional disparities”, with south Indian states remaining “leader in financial inclusion” in “all three dimensions of financial inclusion”. These states, in fact, “strengthened” their “leadership in 2012.”

Comments

'Draconian' Kerala health law follows WHO diktat: Govt readies to take harsh measures

By Dr Maya Valecha* The Governor of Kerala has signed the Kerala Public Health Bill, which essentially reverses the people’s campaign in healthcare services in Kerala for decentralisation. The campaign had led to relinquishing of state powers in 1996, resulting in improvement of health parameters in Kerala. Instead, now, enforcement of law through the exercise of power, fines, etc., and the implementation of protocol during the pandemic, are considered of prime importance.

Reject WHO's 'draconian' amendments on pandemic: Citizens to Union Health Minister

By Our Representative Several concerned Indian citizens have written to the Union Health Minister to reject amendments to the International Health Regulations (IHR) of the World Health Organization (WHO) adopted during the 75th World Health Assembly (WHA75) in May 2022, apprehending this will make the signatories surrender their autonomy to the “unelected, unaccountable and the whimsical WHO in case of any future ‘pandemics’.”

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.

Bihar rural women entrepreneurs witness 50% surge in awareness about renewal energy

By Mignonne Dsouza* An endline survey conducted under the Bolega Bihar initiative revealed a significant increase in awareness of renewable energy among women, rising from 25% to 76% in Nalanda and Gaya. Renu Kumari, a 34-year-old entrepreneur from Nalanda, Bihar, operates a village eatery that serves as the primary source of income for her family, including her husband and five children. However, a significant portion of her profits was being directed toward covering monthly electricity expenses that usually reach Rs 2,000.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Work with Rajasthan's camel herders: German scientist wins World Cookbook Award 2023

By Rosamma Thomas* Gourmand World Cookbook Awards are the only awards for international food culture. This year, German scientist Ilse Kohler Rollefson , founder of Camel Charisma, the first of India’s camel dairies, in Pali district of Rajasthan, won the award for her work with camel herders in Rajasthan, and for preparing for the UN International Year of Camelids, 2024.

Why is electricity tariff going up in India? Who is the beneficiary? A random reflection

By Thomas Franco* Union Ministry of Power has used its power under Section 11 of the Electricity Act, 2003 to force States to import coal which has led to an increase in the cost of electricity production and every consumer is paying a higher tariff. In India, almost everybody from farmers to MSMEs are consumers of electricity.

Golwalkar's views on tricolour, martyrs, minorities, caste as per RSS archives

By Shamsul Islam* First time in the history of independent India, the in-charge minister of the Cultural Ministry in the current Modi government, Prahlad Singh Patel, has glorified MS Golwalkar, second supremo of the RSS and the most prominent ideologue of the RSS till date, on his birth anniversary, February 19. In a tweet he wrote : “Remembering a great thinker, scholar, and remarkable leader #MSGolwalkar on his birth anniversary. His thoughts will remain a source of inspiration & continue to guide generations.”

'Pro-corporate agenda': Odisha crackdown on tribal slum dwellers fighting for land rights

By Our Representative The civil rights network Campaign Against State Repression (CASR), even as condemning what it calls “brutal repression” on the Adivasi slum dwellers of Salia Sahi in Bhubaneshwar by the Odisha police, has said that the crackdown was against the tribals struggling for land rights in order to “stop the attempts at land-grab by the government.”

Deplorable, influential sections 'still believe' burning coal is essential indefinitely

By Shankar Sharma* Some of the recent developments in the power sector, as some recent news items show, should be of massive relevance/ interest to our policy makers in India. Assuming that our authorities are officially mandated/ committed to maintain a holistic approach to the overall welfare of all sections of our society, including the flora, fauna and general environment, these developments/ experiences from different parts of the globe should be clear pointers to the sustainable energy pathways for our people.

Search This Blog