Skip to main content

Predictions of negative growth existed even earlier, why blame pandemic? Top academic

Counterview Desk

In his keynote address, “Blearing the Rural: A Macro Picture of Rural Development”, at a webinar organized by the Centre for work and Welfare at Impact and Policy Research Institute (IMPRI), New Delhi, RS Deshpande, honorary visiting professor at the Institute for Social and Economic Change (ISEC), Bangalore, has regretted that urbanism has become synonym for development, one reason why people in rural areas migrate to “the shining life of urban”.
Prof Deshpande said in his lecture, transcribed by Dr Arjun Kumar and Dr Nitin Tagade, that even before Covid-19 pandemic, the economy of India was in a downward spiral, and institutions such as Reserve Bank of India (RBI) had projected negative growth rates. But, we hoped that injections of investments would boost the economy. But now it is Covid-19 to blame for the continuing downward spiral!
Others who spoke at the webinar included Professor DN Reddy, former dean, School of Social Sciences, University of Hyderabad, who said that agriculture has been seen as the silver lining in the whole pandemic, which is being taken very lightly by the government; and Dr Arjun Kumar, director, IMPRI, who stated that the pandemic has brought back our conscience towards the fundamental and resilient engine of Indian growth story -- agriculture and rural economy.

Excerpts from Prof Deshpande’s lecture:

A major chunk of people (127 million) in rural India is heavily dependent on agriculture for their livelihood of which 82% are small and marginal farmers, and 107 million are agricultural labourers. Despite being the top producers of commodities like wheat, rice, sugarcane etc, India is not self-reliant. Even if we compare growth rate of food grain production with growth rate of only adult population then also self-sufficiency is a distant dream.
The per capita availability of food grains stands at 401gms per person per day which is less than minimum international standard of 500gms per person per day. The factors hindering food security are road density, ration cards, gender related indicators, consumer price index, dependency ratio etc.
The Lewis Framework is wrongly applied in India’s migration scenario as migration out of agriculture is being compensated by the service sector instead of the manufacturing sector. The decreasing rate of agriculture share in GDP is not the same as the decreasing rate of the workforce in the agriculture implying that the carrying capacity of agricultural land in rural areas is increasing very fast with per 1000 hectares.
Though the policies have always been focusing on the development of the industrial sector from 1951 onwards, still we have not achieved the desired growth. India had major revolutions in 1967-68 and 1989-90. Agriculture has always been at 3% growth rate for 60 years except during some intermittent periods. Though productivity is increasing, has the country contributed sufficient efforts and attention to the agricultural sector’s growth?
Since the 1960s elasticity of availability of net food grains with respect to income has been far lower than one. This is conceptualised as Arithmetic Availability under which per person per day availability of food grains is increasing but steadily because of the possible reasons of diversified diet including fruits and vegetables, mutton, chicken etc. At the aggregate level arithmetic availability cannot be lowered.
As for the problems faced by the poor such as malnutrition, wasting, stunting of the children, lack of accessibility to food grains is due to the low purchasing power capacity of individuals. The market is tainted with corruption in food markets and the public distribution system. India is home to the largest poverty and undernourished population in the world despite having resources and availability of grains. The nine Indian states having poverty density higher than the Indian average are Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Manipur, Mizoram, Odisha, and Uttar Pradesh.
The Indian economy has faced economic retrogression. Before Covid-19 pandemic, the economy of India was in a downward spiral with falling GDP growth rates steadily. Even institutions such as Reserve Bank of India (RBI) projected negative growth rates of GDP. But, the country’s governance still hoped that injections of investments would boost the economy; but now it is Covid-19 to blame for the continuing downward spiral.

Impact of pandemic

Even after 70 years of planning and independence, the list of backward districts in the country made in the second plan is the same as one in the eleventh plan showing the namesake development. Now with the unexpected pandemic, the blame game is into force and no one really knows how long is it going to take now to recover from all the issues we are facing from the last 70 years which is now complemented with the uncertainties from Covid-19. 
Agriculture has been seen as the silver lining in the whole pandemic, which is being taken very lightly by the government
The number of problems posed by Covid-19 are: Shattering public health networks in rural areas as evident by the fact that 23% of the villages in India are without Public Healthcare Centres (PHC). Lack of preparedness with no oxygen masks, ventilators, PPE kits for doctors in rural areas is a hidden bomb. The average distance to PHC is about 48km.
The cities which boasted as having the best medical facilities collapsed under pressure. So, the analogy goes all around the thinly distributed rural India and thickly distributed urban India. The agricultural supply chains have collapsed leaving many people unemployed and this has increased dependence in rural areas. Severe unemployment which may lead to social distress, robberies and theft, and increased poverty would lead to more inequality.
During Covid-19, reverse migration due to unavailability of money, food is the outcome of casualization of the workforce where poverty has increased, inequality has increased. Estimated global loss is $5.8 to 8.8$ trillion in March, given by Asian development bank. One can sense that it can be anywhere near 19% now.
There’s a need to redefine economic contours. Following are suggestions for solution which can bring back the rural economy on track:
  • Employment schemes need to be properly implemented across regions to reduce unemployment
  • Primacy of agricultural sector needs to bring back, 
  • Returned migrant labourers must be settled in their original jobs, 
  • There should be an increase in public investment in infrastructure in rural India, 
  • There is a strong need for rural industrialization which will help employing rural people without migrating them far off, 
  • Institutionalizing Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) so that they will be the sole supplier of labourers for infrastructure projects and wages will be fixed by operators under MGNREGS. 

Comments

TRENDING

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

India's health workers have no legal right for their protection, regrets NGO network

Counterview Desk In a letter to Union labour and employment minister Santosh Gangwar, the civil rights group Occupational and Environmental Health Network of India (OEHNI), writing against the backdrop of strike by Bhabha hospital heath care workers, has insisted that they should be given “clear legal right for their protection”.

Uttarakhand tunnel disaster: 'Question mark' on rescue plan, appraisal, construction

By Bhim Singh Rawat*  As many as 40 workers were trapped inside Barkot-Silkyara tunnel in Uttarkashi after a portion of the 4.5 km long, supposedly completed portion of the tunnel, collapsed early morning on Sunday, Nov 12, 2023. The incident has once again raised several questions over negligence in planning, appraisal and construction, absence of emergency rescue plan, violations of labour laws and environmental norms resulting in this avoidable accident.

Job opportunities decreasing, wages remain low: Delhi construction workers' plight

By Bharat Dogra*   It was about 32 years back that a hut colony in posh Prashant Vihar area of Delhi was demolished. It was after a great struggle that the people evicted from here could get alternative plots that were not too far away from their earlier colony. Nirmana, an organization of construction workers, played an important role in helping the evicted people to get this alternative land. At that time it was a big relief to get this alternative land, even though the plots given to them were very small ones of 10X8 feet size. The people worked hard to construct new houses, often constructing two floors so that the family could be accommodated in the small plots. However a recent visit revealed that people are rather disheartened now by a number of adverse factors. They have not been given the proper allotment papers yet. There is still no sewer system here. They have to use public toilets constructed some distance away which can sometimes be quite messy. There is still no...

Women's rights leaders told to negotiate with Muslimness, as India's donor agencies shun the word Muslim

By A Representative Former vice-president Hamid Ansari has sharply criticized donor agencies engaged in nongovernmental development work, saying that they seek to "help out" marginalizes communities with their funds, but shy away from naming Muslims as the target group, something, he insisted, needs to change. Speaking at a book release function in Delhi, he said, since large sections of Muslims are poor, they need political as also social outreach.

Sardar Patel was on Nathuram Godse's hit list: Noted Marathi writer Sadanand More

Sadanand More (right) By  A  Representative In a surprise revelation, well-known Gujarati journalist Hari Desai has claimed that Nathuram Godse did not just kill Mahatma Gandhi, but also intended to kill Sardar Vallabhbhai Patel. Citing a voluminous book authored by Sadanand More, “Lokmanya to Mahatma”, Volume II, translated from Marathi into English last year, Desai says, nowadays, there is a lot of talk about conspiracy to kill Gandhi, Netaji Subhas Chandra Bose, and Shyama Prasad Mukherjee, but little is known about how the Sardar was also targeted.

Bihar’s land at ₹1 per acre for Adani sparks outrage, NAPM calls it crony capitalism

By A Representative   The National Alliance of People’s Movements (NAPM) has strongly condemned the Bihar government’s decision to lease 1,050 acres of land in Pirpainti, Bhagalpur district, to Adani Power for a 2,400 MW coal-based thermal power project.