Indian Economy: Growth -3

[Capt M Kumar]

From the bottom of my heart (Hariharan PV, Bangalore)



If we consider the datum year of independent India's development activities as 1950, we are in the sixtieth year of our planned developments. Without any hype or attempts to find scape-goats, let us see where we actually stand [please note: I do not accept the various "official" data and statistics; but the following are based on my own personal Research carried on during a period of about 20 years, starting in 1987/88]:



WHERE INDIA STANDS TODAY



1. Our population is about 1, 150 million (One in every sixth person in the world is an Indian)

2. We have over 635, 000 villages, where about 800 million people live, in very difficult conditions

3. Almost 100% of the villages are dilapidated, and over 80% of these regions do not have any infrastructure (electricity and water topping the list of non availabilities)

4. About 450 million people are illiterate, and over 80% of them are in the Northern Indian States (UP and Bihar topping the list)

5. About 650 million people do not earn even $150 per capita, and do not have one full nutritious meal per day for all 365 days

6. About 400 million of our youth (age group 18 to 35 yrs) are either unemployed or under employed (over 95% of these are from villages)

7. Over 350 million children (age group 0 to 9 yrs) are malnourished or do not have any average living conditions (all of them never see a school at all)

8. Although we have about a million “higher educated” youth coming out of the nearly 1000 specialty institutions (including prestigious ones such as IIT's IIM's and IISc), not even 30% of these youngsters get appropriate assignments, based on their training and qualifications



9. 80% of our farmers own less than 2 ha land, and they struggle to get enough water, electricity; and they do not get appropriate seeds, fertilizer, and finally appropriate values for their produce (this is in spite of the Government subsidizing almost all of these for the last 40 years)



10. About 40 years ago, our Agricultural and related Scientific departments wanted the farmers to go for intensive cultivation through indiscriminate use of Chemicals and Fertilizers; but now the Scientists are telling them to go for “organic” farming



11. Our Government is indiscriminately (without long term studies) allowing multinational corporations (mainly American Corporations) to have direct say/ control in our Agriculture, resulting in slow and steady dependence on their dictates (reducing our Science, farm practices etc) into “slave levels”



12. We have annual rainfall that allows percapita water of 3, 500 L per day; yet 75% of India's population do not have clean potable water



13. Our electricity requirement falls short by 30%; in spite of lakhs of crores of rupees having been spent on Wind mills, Solar power and other “hybrids”



14. At least 10 million people are annually affected by floods and related calamities, and nothing concrete is done to help those affected, in spite of huge amounts being earmarked for these calamities; about 5 million amongst those affected either loose all of their belongings and homes or are shifted to far away places to become migrants within ones own country of origin. This has been the case from 1990



15. About 40% of the populations in over 500 Towns/ cities (including about 20 metros) are migrant laborers and others seeking some “jobs"; and 100% of these (about 150 million) personnel are form the most dilapidated villages in Orissa, Bihar, UP, Rajashtan and north eastern states, where most villages have absolutely nothing to support them



16. About 450 million people do not have any modern medical facilities, including primary health support; and this is in spite of lakhs of crores of rupees being spent annually for the same; at the same time, superb facilities do spring up for the 1% elite of this country



17. We boast of about 100 billionaires; about 500, 000 millionaires; and we also boast of about 4 million “rich” Indian Diaspora in US, Canada, Europe and other western nations – all put together are worth over US $500 billions; yet, India does not have even one amongst these to counter the “western-tilted” philanthropy of the likes of Bill Gates from entering India! Almost all the philanthropy works are not intended to answer the problems of Poverty and destitute in India, within Indian needs and conditions [Please note: There are thousands of Good Samaritans doing yeoman's service to the society; but we need to counter these “westerners” from coming in with their brand of philanthropy; for example, when our poor people do not have one meal a day, we talk of serving them with education, vaccines, solar power, water filters and so on. But we have no answer to Poverty]



18. 100% of all our development economics, especially from 1991 onward, cater only to the 350 million middle class (including about 10 million “upper” class) … relegating the lower 800 million people altogether into “uncared class”. The “big” economists gloat over saying that “trickle effects” would make sure that those 800 million “lower level” people are also benefited!!!



19. The last twenty years have seen the worst “farmer suicides”, mainly due to inadequate earnings through farming; about a million farmers have committed suicide during this period, on account of bad debts and related economics problems – a shame on our national agriculture policies; shame on our agriculture science; shame on the entire community who “talk” and “act” for agriculture (including big “award winners”)



20. It is estimated that about 15 million ha of farmlands have been converted into housings, industrial infrastructure or for related non-farm activities during that last two decades. This has resulted in decrease in farm production and increase in farm produce costs; escalating into food inflation of the highest order



21. Although the “twenty” statements above would be seen to prioritize our problems in a general way, the Government of India does not seem to consider even one of these as our real problem; instead, we talk of Nuclear arrangement; Gene technology; Bio-technology; Bio-Fuels; “Higher” education; Exports and Special Economic Zones; International Air Ports; Tourism to attract westerners … and so on ... as if these would solve our "down-to-earth" and mundane probems



HOW DO WE OVERCOME POVERTY IN INDIA?



If India is to overcome poverty, not one of the economic and development paradigms that are now attempted would be able to achieve the same. This is because we are trying to mimic the very “Western Intellectual Traditions” (WIT) that have failed the western world … business and economic models that had their origin in the middle ages of the alchemists, wherein business and economics are to do with maximizing wealth and “returns”, concentrating these within a small group. We have seen, in recent times that this classical business model ultimately destroys the very business, resulting in economic-poverty of majority, increasing the gap between the “rich” and “poor” (the two classes also being created by the very same business).



Business needs to look at arrangements in distributing “wealth” equitably so that the current situation of small pockets of prosperity seen in between huge regions of mass poverty is changed. If we were to create a situation whereby the 600 million people (who now earn about $150) earn at least $750 per annum (average), the incremental Purchasing Power (PP) would have to be a whopping $330 billion! This would be possible only if we have additional businesses of at least $3.3 trillion! We may ask: is this possible? This is necessary and feasible. But, we need to look at the world around us in its natural environmental conditions, and build up a Business-Model, based on natural Renewable Resources (RR). Our new business model would have to work on India's strengths:



a.. We have about 400 million youth-power in villages, who are “available” for appropriate employment



b.. Our RR, in the form of annually renewable non-forest vegetation systems (both agro based and non farm vegetation) are of the order of about 3.3 billion tons (green weight) … (one item Banana stem wastes alone account for over 13, 500, 000 T; there are many other such vegetation systems that are totally wasted now)



c.. We have a cattle wealth of over 400 million



d.. Our annual rainfall is the equivalent of 3, 950 billion cu m (but not even 15% of these have been appropriately tapped)



e.. We have a coastal area across about 6, 500 KM



f.. Our average sunlight insolation ranges from about 4 W/ Sq m/ sec to over 8 W/ Sq m/ sec (averaging about 6 W/ Sq m/ sec)



(Note: Here we have not considered any of the Mineral and other non renewable type of resources)



India would be able to develop as an Economic Force, if we take advantage of the above “strengths” and convert them into Processed Food, Energy, and Engineering Materials, as needed by our own people, through our own efforts. Such conversion utilizing/ recycling RR (renewable resources) would be capable of generating “equitable wealth” in the 635, 000 villages; providing jobs to a total of not less than 400 million people. The “wealth” generation (parallel to the present economic development systems) would also include not less than 50, 000 MW additional power; about Rs.90 trillion worth Food, Energy and engineering materials



These could be showcased through a Pilot Plant that could convert the RR in about 50 ha into energy and engineering materials worth about Rs.15 Cr. Such a Pilot plant would need a seed investment of Rs.6 Cr.



[color="#006400"]Is raising this Rs.6 Cr seed capital for the Pilot plant possible? Would our “rich” Indian diaspora take up the initiative? If it is possible to do so, a small (dedicated) GROUP here would take up the practical implementation works ... Actually India is not a hungry republic ... we seem to be a republic with very few looking at positive methods to work for nation building ... that of POVERTY ALLEVIATION, which is our single biggest problem. This has to change[/color] <img src='http://www.india-forum.com/forums/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />



JAI HIND



Best regards



Hariharan PV



http://www.linkedin .com/in/harihara npv