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

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.

Two more "aadhaar-linked" Jharkhand deaths: 17 die of starvation since Sept 2017

Kaleshwar's sons Santosh and Mantosh Counterview Desk A fact-finding team of the Right to Feed Campaign, pointing towards the death of two more persons due to starvation in Jharkhand, has said that this has happened because of the absence of aadhaar, leading to “persistent lack of food at home and unavailability of any means of earning.” It has disputed the state government claims that these deaths are due to reasons other than starvation, adding, the authorities have “done nothing” to reduce the alarming state of food insecurity in the state.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

What's behind Donald Trump's 'narco-state' accusation against Venezuela

By Manolo De Los Santos  The US government has revived its campaign to label Venezuela a "narco-state", accusing its top leadership of drug trafficking and slapping hefty bounties on their heads for capture. This campaign, which only momentarily took a backseat, is a strategic fabrication, not a factual assessment. This accusation, particularly amplified under the Trump Administration, is a calculated smokescreen to justify a long-standing agenda: the overthrow of the Venezuelan government and the seizure of its vast oil and mineral resources. A closer examination of the facts reveals a country that has actively fought drug trafficking on its own terms and a US government with a clear and consistent history of destabilizing independent countries in Latin America.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

1857 War of Independence... when Hindu-Muslim separatism, hatred wasn't an issue

"The Sepoy Revolt at Meerut", Illustrated London News, 1857  By Shamsul Islam* Large sections of Hindus, Muslims and Sikhs unitedly challenged the greatest imperialist power, Britain, during India’s First War of Independence which began on May 10, 1857; the day being Sunday. This extraordinary unity, naturally, unnerved the firangees and made them realize that if their rule was to continue in India, it could happen only when Hindus and Muslims, the largest two religious communities were divided on communal lines.

Ground reality: Israel would a remain Jewish state, attempt to overthrow it will be futile

By NS Venkataraman*  Now that truce has been arrived at between Israel and Hamas for a period of four days and with release of a few hostages from both sides, there is hope that truce would be further extended and the intensity of war would become significantly less. This likely “truce period” gives an opportunity for the sworn supporters and bitter opponents of Hamas as well as Israel and the observers around the world to introspect on the happenings and whether this war could have been avoided. There is prolonged debate for the last several decades as to whom the present region that has been provided to Jews after the World War II belong. View of some people is that Jews have been occupants earlier and therefore, the region should belong to Jews only. However, Christians and those belonging to Islam have also lived in this regions for long period. While Christians make no claim, the dispute is between Jews and those who claim themselves to be Palestinians. In any case...

Fate of Yamuna floodplain still hangs in "balance" despite National Green Tribunal rap on Sri Sri event

By Ashok Shrimali* While the National Green Tribunal (NGT) on Thursday reportedly pulled up the Delhi Development Authority (DDA) for granting permission to hold spiritual guru Sri Sri Ravi Shankar's World Culture Festival on the banks of Yamuna, the chief petitioners against the high-profile event Yamuna Jiye Abhiyan has declared, the “fate of the floodplain still hangs in balance.”