International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Relationship among GDP, Gross Capital Formation (GCF) and Foreign Aid in Nepal

Arjun Kumar Baral Associate Professor of Economics, Tribhuvan University, Nepal

Abstract The present paper aims at examining the long run relationship among the macroeconomic variables GDP, GCF and Foreign Aid in Nepalese economy. Nepal has been receiving foreign aid from both bilateral and multilateral sources since last few decades. India has been participating actively in Nepal’s overall economic development including the development of physical and social infrastructure since 1951. The paper focuses on both descriptive and time series econometric analysis for the period 1975- 2014. The econometric method includes testing for stationarity (unit root test), Johansen’s cointegration test, FMOLS and residual diagnostic test for FMOLS. Though foreign aid is playing a vital role for overall economic development of Nepal, the relationship between foreign aid and GDP could not be established due to stationarity problem. The Johansen’s Cointegration test implies that there exists a long run equilibrium relationship between GDP and GCF. Finally, the FMOLS implies that a ten percent increase in GCF causes Nepalese GDP to increase by 6.3 percent where foreign aid is taken as an additional deterministic regressor. Keywords: Foreign Aid, GDP, GCF, FMOLS, Cointegration, Nepal 1. Introduction: econometric analysis for concerned variables. Finally, section 6 concludes the Nepal, a least developed country in overall findings of the present work. south Asia, has been receiving foreign aid 2. Literature Review: Bista from both bilateral and multilateral (2006) concluded that donors should sources since last few decades. Despite conduct more research to country- the tremendous efforts from this part, specific problems and attributes, such as the economic growth has not been the socio-cultural factors before they accelerated so far as it is expected. The disburse any kind of aid. In case of main objective of the present paper is to Nepal, the country would be better off if investigate the relationship among GDP, the donors assume exclusive control over foreign aid and Gross capital formation the project and work directly with the (GCF) in case of Nepalese economy. It local bodies, NGOs or other consulting also analyses some dimensions of the companies, rather than the government. contribution of Indian aid for Nepal’s economic prosperity. The next section of Devkota ( 2008) found that per capita the paper reviews the findings of income and foreign aid have been research works on this particular issue. negatively related using the panel data Section 3 concerns to present a brief set over the period of 1980-2006 of scenario of foreign aid from India to developing south Asian countries. While Nepal. Section 4 presents the source of aid has been positively related to data and methodological issues. Section 5 population and external debt, the focuses on the findings from the negative coefficients on per capita GDP www.ijar.org.in 1 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] suggests that Donor aid favors south analyzed the effects of foreign aid on the Asian countries in allocating aid, economic growth of developing countries supporting the hypothesis that recipient based on the annual data on a group of needs do have an effect on foreign aid 85 developing countries covering Asia, allocation. Africa, and Latin America and the Bhattarai (2009) used the cointegration Caribbean for the period 1980-2007. and error correction mechanism to They found that foreign aid has mixed investigate the effectiveness of aid in effects on economic growth in developing Nepal during the period 1983-2002 by countries. Chinecherem and Ezenekwe examining the long-run relationship (2015) carried out an empirical analysis between aid and per capita real GDP. He of the impact of foreign aid on capital found that foreign aid has a positive and generation in Nigeria ranging from 1980- statistically significant effect on per 2013. Linear regression was adopted in capita real GDP in the long-run. the method with the application of Fasanya and Onakoya(2012) analyzed Ordinary Least Squares (OLS) the impact of foreign aid on economic technique. The results derived showed growth in Nigeria during the period of that foreign aid contributed negatively to 1970-2010. Their findings show that aid capital generation in Nigeria and the flows has significant impact on economic accompanying variable which was growth in Nigeria: domestic investment external debt also has a negative increased in response to aid flows and contribution to capital generation. population growth has no significant effect on aid flows. Basnet ( 2013) 3. Indian Aid to Nepal: A examined the role of foreign aid on Glance: India, one of the economic domestic savings and economic growth in powers of the world, is the closest South Asian countries - Bangladesh, partner of Nepal’s socio-economic India, Nepal, Pakistan, and Sri-Lanka - development from the history. The by using simultaneous equation system program of India-Nepal economic in which growth and savings are jointly cooperation was launched in 1951. The determined. The results indicate that aid objective of this program was and has a positive and significant effect on remains to supplement the efforts of the the growth rates of the five nations Government of Nepal in the national studied during 1960 to 2008. Hamid Ali development of the country. India’s (2013) used Johansen Cointegration test assistance program in Nepal is guided by and Vector Error Correction Model the vision that alongside progress in (VECM) to find the effectiveness of political process in Nepal, it is equally foreign aid in promoting economic important to ensure that economic growth in Egypt, the paper finds a deliverables, particularly in the areas of negative and significant impact of foreign education, health and infrastructure, aid on economic growth in the long and must reach the people without any pre- short run. Cecen, Xiao & Adhikari conditions in a smooth, quick and (2014) investigated the dynamics of unencumbered manner. Towards this economic development in Nepal in the end, Government of India is providing context of foreign aid, institutional technical and financial assistance for change, and political instability. multi-sector development of Nepal Ekanayake and Chatrna (2014) (Indian Embassy) www.ijar.org.in 2 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

The following table presents a bird’s eye Education, Health and Community view on the no. of projects that reflects Development. the Indian aid to Nepal. 4. Data and Methodology

Table 1: Small and Large/Medium Present paper utilizes the annual data of Indian Projects to Nepal GDP, Foreign Aid and Gross Capital Formation (GCF) over the period 1975- 2014 and the concerned data are derived No. of SmallLarge & Total from Economic Survey 2015/16. The projects as Medium variables are transformed into logarithm on and hereafter these are denoted by 31.3.2004 16 10 26 respectively in level 31.3.2005 56 22 78 forms and by in first 31.3.2006 100 24 124 differences respectively. 31.3.2007 174 26 200 Fully Modified Ordinary Least Square 31.3.2008 247 28 275 (FMOLS) is the main econometric 31.3.2009 294 30 324 methodology used in this paper to 31.3.2010 340 30 370 examine the impact of foreign aid and 31.3.2011 366 35 401 gross capital formation on Nepalese 31.3.2012 396 35 431 economic growth. First, ADF unit root 31.3.2013 425 35 460 test is performed to check the 31.3.2014 450 35 485 stationarity of the variables. After the ADF root is performed, present paper 31.10.2014462 35 497 employs Johansen’s Cointegration test to 30.11.2014466 36 502 examine the long run relationship 31.05.2015474 36 510 between and among the variables under Source: Indian Embassy to Nepal, 2016 study. While performing Johansen’s Cointegration test, the series known to From the table, it can be observed that be non-stationary is used. Finally, India is supporting for Large/ Medium FMOLS has been applied to examine the and Small Projects. But India is focusing impact of foreign aid and GCF on towards small projects in recent years. economic growth of Nepalese economy The Small Development Projects are with the concerned time series known to implemented on the basis of a be stationary. Memorandum of Understanding ( MoU) 4.1 ADF Unit Root Test signed between Government of India ( Before carrying out any OLS regression, GoI) and Government of Nepal ( GoN) in it is imperative to test the stationarity of November 2003 and now it is extended the concerned time series variables. The 5th August, 2017. The projects whose cost time series is said to be stationary when is less than 0.7 million US dollar (IRs it does not contain unit root. If the time 3.125 crores or NRs 5 crores) are series contains unit root, it can said to be categorized as small projects. These non-stationary series and the regression projects focused on areas of results are spurious when non-stationary Infrastructure Development and series are employed in the OLS Capacity Building in the areas of regression. There are different methods

www.ijar.org.in 3 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] to test unit root. However, the present take into account of the fact that study uses the ADF unit root test. follows an AR ( ) process. The estimable The ADF unit root test was introduced equations for ADF unit root test in the by Said and Dickey (1984) to take into case of flat time series and the time account when time series { } follows an series with trend are represented by AR ( ) process. Lagged values of are equations (1) and (2) respectively. introduced in the following equations to

(1) (2) Equation (2) includes both intercept The present study employs the Johansen term and a time trend ( and ). The and Juselius (1990) technique to find the null hypothesis of the Augmented number of Cointegrating vector. The Dickey-Fuller t-test is: (The Cointegration test helps to examine the data needs to be differenced to make it long run equilibrium relationship among stationary) versus the alternative the variables under study. This procedure offers maximum likelihood hypothesis of (The data is (ML) estimation and evaluates multiple stationary and doesn’t need to be cointegrating vectors. The Johansen’s differenced) 4.2 Johansen’s Cointegration Test Cointegration test considers the following equations.

Let be a vector of N time series, each of which is integrated of order one, that is, with a vector autoregressive (VAR) representation of order , (3)

Where,  i are matrices of unknown constants and  t is an independently and identically distributed n-dimensional vector with zero mean and variance matrix . The estimable equation for the cointegrating relationship can be recast as: (4)

Where and Johansen’s Cointegration proposes two likelihood ratio tests to determine the number of cointegrating vectors. First is the Maximum Eigen value test and the second is Trace Statistic. The maximum Eigen value test evaluates the null hypothesis that there are at most cointegrating vectors against the alternative hypothesis of cointegrating vectors. On the other hand, the Trace Statistic tests the null hypothesis of cointegrating vectors against the alternative of or more cointegrating vectors. The Maximum Eigen value test and Trace Statistic are given by the equations (5) and (6) respectively. (5) Where, are the smallest squared canonical correlations and = number of observations.

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(6) 4.3 Fully Modified Ordinary Least Square

Fully Modified Ordinary Least Squares FMOLS method was developed by (FMOLS) is the main econometric Phillips and Hansen (1990) to estimate methodology used in this paper to the cointegrating regressions. “This examine the impact of GCF and Foreign method employs a semi-parametric Aid on Nepalese economic growth. In the correction to eliminate the problems present study, the economic growth on created by long run correlation between GCF augmented with foreign aid cointegrating equation and stochastic through FMOLS is regressed. The regressors innovations” (HIS Global Inc., FMOLS is the econometric technique to 2015, p.259). This method is used to find the impact of independent variable/s modify the least squares to account for on dependent variable after the variables serial correlation effects and for the under study are cointegrated. Thus, the endogeneity in the regressions that FMOLS shows the long run impact of result from the existence of cointegrating independent variable/s on dependent relationship (ibid). variable. The cointegrating relationship of dimensional time series vector process can be represented by following equation (7) [ibid]. (7) Where,

The FMOLS estimator is given by:

(8) Where, (

[ and be the long run covariance matrices computed using the residuals ] 5. Data Analysis and Discussion variables is checked through ADF unit of Results root test. After the ADF unit root is 5.1 Results from ADF Unit Root Test tested, the non-stationary variables are employed in Johansen’s Cointegration Before carrying out Johansen’s test. Following table portrays the results Cointegration test, it is necessary to from ADF unit root test. check the stationarity of the variables. The stationarity of the concerned Table-2: ADF Unit Root Test

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[Lag length: 0 (Automatic-SIC, Max lag:9)] Intercept in test equation Variables Test Critical Value ADF test statistic Probability at 0.05 level -2.9389 -0.4168 0.8963 -2.9411 0.0164 0.9543 -2.9389 -3.2804 0.0227 -2.9411 -6.4852 0.0000 -2.9411 -8.9510 0.0000 -2.9411 -6.7149 0.0000 Source: Author’s test implies that the variables GDP and calculation based on the data series 1975- capital formation (except foreign aid) 2014. have unit root and known to be non- For ADF unit root test, the null stationary at level form. However, hypothesis is ‘the variable has unit root’. foreign aid is stationary at level form; Except for , the null hypotheses for other variables are known to be stationary at first differences. the variable and are not rejected 5.2 Johansen’s Cointegration Test at 5 % level of significance because the ADF statistics for each variables are less The variables and (except than the corresponding test critical are known to be non-stationary. So we values. But for the case of , the ADF can use only these non-stationary test statistic exceeds the test critical variables for Johansen’s Cointegration value. So the null hypothesis for this test. Before applying Johansen’s variable is strongly rejected. On the Cointegration test, it is necessary to other hand, the null hypotheses for all identify the suitable lag/s to be used for variables in their first differences are each endogenous variable in the VAR strongly rejected due to the reason that structure. The following table presents the ADF test statistics for each variable Johansen Cointegration test based on are greater than the corresponding test Max Eigen value and trace statistic. critical values. Thus, the ADF unit root Table-3: Test Based on Maximum Eigen Value Test statistic (0.05) P-value 0.4880 25.4385 15.8921 0.0012 0.0748 2.9551 9.1645 0.5891

Test Based on Trace Statistic Test statistic (0.05) P-value 0.4880 28.3937 20.2618 0.0030 0.0748 2.9551 9.1645 0.5891

Source: Author’s calculation based on the data series 1975-2014. Using VAR lag order selection criteria, Schwarz information criterion (SC). With lag 1 for each endogenous variable is first order VAR of the variables under known to be suitable as indicated by investigation, the hypothesis of is

www.ijar.org.in 6 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] uniformly rejected in favor of the variable is found stationary at level form. alternative hypothesis employing However, the variable has been the maximum Eigen-value test and Trace included in Cointegrating equation as statistic as reported by the 4th column of additional deterministic regressor. Table-2 and 3. The maximum Eigen- 5.3 Results from FMOLS: value test of versus fails to The results from FMOLS are presented reject the null hypothesis of through Table-4. Under FMOLS model, implies one cointegrating vector. In the the results are estimated using the first same manner, the Trace statistic test of difference of the concerned variables where dependent variable is and versus fails to reject the null independent variables is with hypothesis of implying one cointegrating vector. Thus, on the basis as additional deterministic regressor. of maximum Eigen-value test and Trace However, the FMOLS of on statistic, the variables are (excluding ) carried out prior to the found to be cointegrated. In other words, FMOLS of on augmented with there exists long run equilibrium as additional deterministic relationship between GDP and capital regressor fails to show the evidence of formation in the economy of Nepal. significance of the impact of foreign aid Though the variables under study are on economic growth (not necessary to found to be cointegrated, foreign aid mention here). could not be included in Johansen’s Cointegration test; it is because this Table-4: Results from FMOLS (Dependent variable: ) Variable Coefficient Standard t-Statistic Probability Error 0.6333 0.0295 21.4453 0.0000 Constant 4.6802 0.2661 17.5831 0.0000 Source: Author’s calculation based on the data series 1975-2014. the technique of ‘correlogram of squared Form the Table-4, it is observed that the residuals’ to examine the goodness of fit coefficient of is 0.6333. It is positive of FMOLS cointegrating equation. The as well as significant at less than 1 results from correlogram residuals are presented through Table-5. percent level. Thus, the results from FMOLS indicate that level of capital formation, with foreign aid as additional From Table-5, it is observed that ACFs deterministic regressor, has positive and PACFs of correlogram of the impact on the GDP of Nepalese economy residuals are very small (nearly zero) at over the study period. In other words, a almost all lags and the Q-statistics at all ten percent rise in causes to lags are not significant with large p- increase by 6.3 percent. values. This indicates that there is no Finally, the robustness of the estimated evidence of rejecting the null hypothesis FMOLS is examined through residuals of no serial correlation. diagnostic test. Under residuals diagnostic test, the present paper uses www.ijar.org.in 7 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Table-5: Correlogram of Squared Residuals Lag AC PAC Q-Stat Probability 1 0.222 0.222 2.0697 0.150 2 0.122 0.077 2.7166 0.257 3 0.218 0.186 4.8330 0.184 4 -0.017 -0.115 4.8459 0.303 5 -0.146 -0.169 5.8465 0.321 6 -0.214 -0.211 8.0733 0.233 7 -0.081 0.050 8.4016 0.299 8 -0.102 0.010 8.9356 0.348 9 -0.037 0.083 9.0091 0.436 10 0.091 0.077 9.4684 0.488 Source: Author’s calculation based on the data series 1975-2014. This implies that the residuals of the the FMOLS model. But Nepal should fitted FMOLS cointegrating equation are also seek alternative ways rather than not correlated with their own lagged focusing on foreign aid to accelerate the values. Hence, there is strong evidence of pace of economic development and get goodness of fit of the FMOLS models rid of economic backwardness. that represents the impact of capital References: formation along with foreign aid on GDP ). of Nepalese economy. Alemu A.M., Lee J.S.( 2015 Foreign aid 6. Conclusion on economic growth in Africa: A comparison of low and middle- Though the present paper is devoted to income countries. South African Journal analyze the relationship among GDP, of Economic and Management Sciences, foreign aid and Gross Capital Formation 18 (4). http://dx.doi.org/10.17159/2222- (GCF); the cointegrating relationship 3436/2015/V18N4A1. could not be established between foreign aid and GDP due to the problem of stationarity. Since foreign aid has been Basnet, H. C. (2013). Foreign Aid, taken as one of the important source of Domestic Savings and Economic Growth capital formation and there is in South Asia. International Business & cointegrating relationship between GCF Economics Research Journal , 12 (11), and GDP, it can be concluded that there 1389-1394. The Clute Institute. is long run relationship between foreign aid and GDP. Similarly, FMOLS test signifies that ten percent increase in Bhattarai, B.P. (2009). Foreign Aid and GCF causes Nepalese GDP to increase by Growth in Nepal: An Empirical Analysis. 6.3 percent where foreign aid is taken as The Journal of Developing Areas, 42(2), an additional deterministic regressor. 283-302. URL: This indicates that foreign aid has also http://www.jstor.org/stable/40376221. been playing a crucial role to enhance the GDP through the channel of capital Bista, R. (2006). Foreign aid policy and formation. The other econometric test its growth effect in Nepal. (correlogram of squared residual) proves EconoQuantum, 3(1), 109- 14. the strong evidence of goodness of fit of Universidad de Guadalajara, Mexico. www.ijar.org.in 8 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Issues, 3(3), 743-751. Boone, P. (1996).Politics and the www.econjournals.com. effectiveness of foreign aid. European Kanu S.I., Ozurumba B.A.( 2014). Economic Review, 40(2), 289– Capital Formation and Economic Growth 329. in Nigeria. Global Journal of human- social science: E, 14(4:1). Global Journals Inc. (USA). Cecen A., Xiao L., Adhikari S. (2014). Maria C.U., Ezenekwe R. U. (2015). Institutions, Economic Growth, and Impact of Foreign Aid on Capital Foreign Aid in Nepal. International Generation in Nigeria. Journal of Economics and Finance , 6 International Journal of Economics, (6), 84-94. Canadian Center of Science Commerce and Management, 3(9), 876- and Education. URL: 889. United Kingdom. http://dx.doi.org/10.5539/ijef.v6n6p84. http://ijecm.co.uk/

Devkota, K.L. (2008). Foreign Aid and Mosley, P. (1980). Aid, savings and Oxford Bulletin of Economic Growth: A Case of South Asian growth revisited. Economics and Statistics Countries. Economic Journal of Nepal, , 42(2), 79–95. 31(4), 246-267. Central Department of Economics T.U., Kirtipur Central Mosley P., Hudson J., Horrell S.(1987). Department of Economics T.U., Kirtipur. Aid, the Public Sector and the Market in Less Developed Countries. Economic Ekanayake E.M., Chatrna D. (2014). Journal The effect of foreign aid on economic , 97(387), 616–641. growth in developing countries. Journal of International Business and Cultural Moyo, D. (2009). Dead Aid: Why Studies, Aid is not working and How There is 1-13. Another Way for Africa. www.aabri.com/manuscripts/09359.pdf Penguin. Easterly, W. (2003). Can Foreign Aid Buy cms.medcol.mw/cms_uploaded_resources/ Growth? Journal of Economic 4685_4.pdf. Perspectives, 17(3), 23–48. www.development.wne.uw.edu.pl/upload Phillips, P.C.B. (1995). Fully Modified Least Squares and Vector Auto- s/Courses/dev_easterly_2003.pdf. Econometrica regression. , 63(5), 1023- Fasanya I.O., O Onakoya A.B. (2012). 1078. Does Foreign Aid Accelerate Economic Growth? An Empirical Analysis for Ogundipe A.A., Ojeaga P., Ogundipe Nigeria. International Journal of O.M. (2014). Is Aid Really Dead? Economics and Financial Issues, Evidence from Sub-Saharan Africa. 2(4), International Journal of Humanities and 423-431. www.econjournals.com. Social Science, 4(10), 300-314. Hamid Ali, H.A.E. (2013). Foreign Aid and Economic Growth in Egypt: A Cointegration Analysis. International Journal of Economics and Financial

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Impact of Economic Reforms on Revenue and Expenditure In India G. Vedanthadesikan Director, Centre for Rural Development, Annamalai University

Dr.P.Arokiasamy, Assistant Professor in Economics, Government Arts College, Chidambaram

Abstract Some of the major components of India's fiscal sector reforms include expenditure reforms, tax reform measures, public sector restructuring and systematic reforms in the government's borrowing process. This paper deals with impact of economic reforms on Growth of Tax Revenue during Pre Reform Period 1990-1991 and Post Reform Period 2014-2015, Net Tax Revenue of Centre and the States during Pre Reform Period and Post Reform Period, Tax GDP Ratio during the Pre Reform Period and Post Reform Period, Trends in revenue and Expenditure in India during the Pre Reform Period and Post Reform Period and Growth of Financial Pattern of India during the Pre Reform Period and Post Reform Period. This paper concludes with some interesting findings. Introduction reforms was not very different from the India’s economic reforms began reforms undertaken by many developing in 1991 when a newly elected Congress countries in the 1980s. Where India’s government, facing an exceptionally reforms differed was the much more severe balance of payments crisis, gradualist pace at which they were embarked on a programme of short term implemented. stabilisation combined with a longer Macro-economic imbalances term programme of comprehensive characterized by high fiscal deficits and a structural reforms. Rethinking on growing revenue deficit continued to economic policy had begun earlier in the remain a major source of concern for the mid-eighties by when the limitations of a Government during the past few years. development strategy based on import These concerns were compounded by the substitution, public sector dominance impact of the Gulf Crisis during 1990-91. and pervasive government control over Aggregate resources of the Central the private sector had become evident, Government including internal and extra but the policy response at the time was budgetary resources of Central Public limited to liberalising particular aspects Enterprises were estimated to increase of the control system without changing by 15.0 percent in 1990-91. Aggregate the system itself in any fundamental disbursements, on the other hand, were way. The reforms initiated in 1991 were estimated to increase by9.4 per cent in different precisely because they 1990-91, thereby indicating some recognised the need for a system change, reduction in the relative side of the gap involving liberalisation of government between income and expenditure of the controls, a larger role for the private Central Government. This also applied to sector and greater integration with the the combined Budget Estimates (BE) of world economy. The broad outline of the the Centre, States and Union Territories www.ijar.org.in 10 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] for 1990-91, which estimated a deficit of The total tax was Rs. 87722 crore Rs. 8,999 crore compared with the in 1990-1991 and it enlarged to Rs. Revised Estimates of Rs, 12,149 crore in 2238115 crore in 2014-1015, reflecting an 1989-90 expansion of 96.08 per cent during the post reform period. The income Table 1 presents data on the growth of generated through central direct tax was gross tax revenue in India during the pre Rs.11030 crore in 1990-1991 and it rose reform period and post reform period. It to Rs. 730240 in 2014-2015, revealing a could be noted that total direct tax growth of 98.48 per cent. The indirect revenue on India was Rs. 12260 crore in tax revenue of central government was 1990-1991 and it rose to Rs. 748643 Rs. 46547 in 1990-1991 and it enhanced crore in 2014-2015, reflecting a growth of to Rs. 634285 crore in 2014-2015 during 98.36 per cent during the post reform the post reform period. The central period. The total indirect tax revenue of government generated total tax revenue India was Rs. 75462 crore in 1990-1991 was Rs.57577 crore in 1990-1991 and it and it expanded to Rs. 1489472 went upto Rs. 1364524 crore in 2014- indicating a growth of 94.93 per cent 2015, showing a growth of 95.78 per cent during the post reform period. in the period of analysis.

Table 1 Growth of Tax Revenue during Pre Reform Period and Post Reform Period Source of Tax Revenue 1990- Growth 2014-2015 1991 Rate Total direct tax revenue 122260 748643 98.36 Total indirect tax revenue 75462 1489472 94.93 Total tax revenue 87722 2238115 96.08 Central direct tax revenue 11030 730240 98.48 Central indirect tax revenue 46547 634285 92.66 Total Central taxes 57577 1364524 95.78 States’ share in direct central taxes 4121 215254 98.08 States’ share in indirect central 10414 176467 94.90 taxes States’ share in central taxes 14535 391721 96.28 Source: Economic Survey of India 2014-2015

The states’ share in direct central tax was 14535 crore in 1990-1991 and it moved Rs, 4121 crore in 1990-1991 and it rose to upto Rs. 391721 crore in 2014-2015 Rs. 215254 in 2014-2015 recording a indicating a growth of 96.28 per cent in growth of 98.08 per cent in the period of the period of analysis. analysis. The states’ share in indirect central tax was Rs. 10414 crorein 1990- The pre reform period and post reform 1991 and it went up to Rs. 176467 in period. The net direct central tax income 2014-2015, revealing a growth of 94.90 was Rs. 6909 crore in 1990-1991 and it per cent in the period of analysis. The rose to Rs. 514986 in 2014-2015, reflecting total states’ share in central tax was Rs. a growth of 98.65 per cent. The net

www.ijar.org.in 11 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] indirect tax income of central government government was Rs. 43042 crore in 1009- was Rs. 36133 crore in 1990-1991 and it 1991 and it expanded to Rs. 972803 crore increased to Rs. 457817 crore in 2014- in 2014-2015 recording a growth of 85.29 2015, indicating a growth of 92.10 per per cent during the post reform period. cent during the post reform period. The total net tax income of central Table 2 Net Tax Revenue of Centre and the States during Pre Reform Period and Post Reform Period Tax Source 1990-1991 2014-2015 Growth Rate Net direct central tax revenue 6909 514986 98.65 Net indirect central tax 36133 457817 92.10 revenue Net total central tax 43042 972803 85.29 Direct net states own tax 1230 18403 93.32 Indirect net states own tax 28915 855187 96.62 Total net states own tax 30145 873591 96.55 Direct states tax revenue 5351 233657 97.70 Indirect states tax revenue 39329 1031654 96.18 Total states tax revenue 44680 1265312 96.46 Source: Economic Survey of India 2014-2015

Table 2 presents data on the growth of to Rs. 1031654 crore in 2014-2015, net tax revenue of centre and states reflecting a growth of 96.18 per cent during The direct net states’ own tax during the post reform period. The total revenue was Rs. 1230 crore in 1990-1991 states’ tax revenue was Rs. 44680 crore and it enlarged to Rs. 18403 crore in in 1990-1991 and it enhanced to Rs. 2014-2015, revealing a growth of 93.32 1265312 crore in 2014-2015, indicating a per cent during the post reform periods. growth of 96.46 per cent during the The indirect net states’ own tax income period of analysis. was Rs. 289215 crore in 1990-1991 and it It is observed that the growth of increased to Rs. 855187 crore in 2014- net direct centre tax income records the 2015, showing a growth of 96.62 per cent first rank during the pre reform period in the period of analysis. The total net 1990-1991 to post reform period 2014- states’ own tax income was Rs. 30145 2015, growth of total states’ direct tax crore in 1990-1991 and it moved upto income the second, growth of indirect net Rs.873591 crore in 2014-2015, recording states’ own tax income the third, growth a growth of 96.55 per cent in the period of total net states’ own tax income the of analysis. fourth, growth of total states’ tax income The total direct states’ tax the fifth, growth of indirect states total revenue was Rs.5351 crore in 1990-1991 tax income the sixth, growth of direct net and it enhanced to Rs. 233657 crore in states’ own tax income the seventh, 2014-2015, reflecting a growth of 97.70 growth of net indirect central tax income per cent during the post reform period. the eighth and growth of net total central The total indirect states’ tax revenue was tax income the last. Rs.39329 crore in 1990-1991 and it rose

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Table 3 presents data on the tax-GDP centre-states indirect tax GDP ratio was ratio growth during the pre-reform 12.87 in 1990-1991 and it declined to period and post reform period in India. 11.23 consequent upon economic The total combined centre-states direct reforms. The total combined centre- tax GDP ratio was 2.09 in 1990-1991 and states tax GDP ratio was 14.96 in 1990- it rose to 5.81 in 2014-2015, reflecting a 1991 and it enlarged to 17.38 in 2014- growth of 64.02 per cent during the post 2015, revealing a growth of 13.93 in the reform period. The total combined period of analysis.

Table 3 Tax GDP Ratio during the Pre Reform Period and Post Reform Period Tax GDP Ratio Growth 1990-1991 2014-2015 Rate Total direct tax GDP ratio 2.09 5.81 64.02 Total indirect tax GDP ratio 12.87 11.57 -11.23 Total tax GDP ratio 14.96 17.38 13.93 Direct central tax GDP ratio 1.88 5.67 66.84 Indirect central tax GDP ratio 7.94 4.93 -61.05 Total central tax GDP ratio 9.82 10.60 7.35 Direct states’ share central tax GDP ratio 0.70 1.67 58.08 Indirect states’ share central tax GDP ratio 1.78 1.37 -29.92 Source: Economic Survey of India 2014-2015

The direct central tax GDP ratio was ratio was 1.78 in 1990-1991, and it 1.88 in 1990-1991 and it enhanced to declined to 1.31 in 2014-2015, showing a 5.67 in 2014-2015, indicating a growth of shortfall of 29.92 per cent during the 66.84 per cent during the post reform post reform period. period. The indirect central tax GDP Data presented in table 4 indicates the ratio was 7.94 in 1990-1991 and it trends in revenue and expenditure in decelerated to 4.93 in 2014-2015, India during the pre-reform period and reflecting a shortfall 61.05 per cent in post reform period. The combined centre- the period of analysis. The total central states’ non development expenditure of tax GDP ratio was 9.82 in 1990-1991 and India was Rs. 69195 crore in 1990-1991 it rose to 10.60 in 2014-2015, indicating a and it rose to Rs. 1654457 crore in 2014- growth of 7.35 per cent dur4ing the post 2015, reflecting a growth of 95.82 per reform period. The states’ share in direct cent during the post reform period. The central tax GDP ratio was 0.70 in 1990- combined centre-states’ development 19991 and it rose to 1.67 in 2014-2015, expenditure was Rs. 74000 crore in 1990- reflecting a growth of 58.08 per cent in 1991 and it expanded to Rs. 1847828 the period of analysis. The states’ share crore in 2014-2015, indicating an in indirect central tax GDP ratio was enhancement of 95.94 per cent during 0.70 in 1990-1991 and it rose to 1.67 in the post reform period. The loan advance 2014-2015, reflecting a growth of 58.08 amount of India was Rs. 11946 crore in per cent in the period of analysis. The 1990-1991 and it rose to Rs. 35220 crore states’ share in indirect central tax GDP

www.ijar.org.in 13 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] in 2014-2015, indicating a growth of 66.08 per cent in the period of analysis.

Table 4 Trends in revenue and Expenditure in India during the Pre Reform Period and Post Reform Period Tax GDP Ratio 1990- Growth 2014-2015 1991 Rate Combined non development expenditure 69195 1654457 95.82 Combined development expenditure 74000 1847828 95.99 Loan and advances 11946 35220 66.08 Total expenditure 156226 3537504 95.58 Tax revenue 87723 2238115 96.08 Non tax revenue 12287 316322 96.11 Revenue development expenditure 64368 1547374 95.84 Revenue non development expenditure 57498 1424609 95.96 Capital non development expenditure 5378 121725 95.58 Capital development expenditure 16502 423219 96.10 Combined capital receipt 42384 875641 95.15 Source: Economic Survey of India 2014-2015

The total expenditure during the pre- The capital non development reform period was 156226 crore in 1990- expenditure of India was Rs. 5378 crore 1991 and it expanded to Rs. 3537504 in 1990-1991 and it enhanced to Rs. crore in 2014-2015, reflecting a growth of 121725 crore in 2014-2015, reflecting a 95.58 per cent. The total tax revenue was hike of 95.58 per cent during the period Rs.88723 crore in 1990-1991 and it of analysis. The capital development expanded to Rs. 2238115 crore in 2014- expenditure of India was Rs. 16502 crore 2015, showing an increase of 96.08 per in 1990-1991 and it increased to Rs. cent during the post reform period. The 423219 crore in 2014-2015, showing a total non-tax revenue was Rs. 12287 rise of 96.10 per cent in the period of crore in 1990-1991 and it rose to Rs. analysis. The combined capital receipt of 316322 crore in 2014-2015, indicating an India was Rs. 42384 crore in 1990-1991 enhancement of 96.11 per cent in the and it rose to Rs. 875641 crore in 2014- period of analysis. 2015, indicating a growth of 95.15 per The revenue development cent during the period of analysis. expenditure was Rs. 64368 crore in 1990- Table 5 presents data on the financial 1991 and it moved to Rs. 1547374 crore pattern of India during the pre reform in 2014-2015, showing an enhancement period and post reform period. The total of 95.84 per cent in the period of central government expenditure was Rs. analysis. The revenue non development 1000878 crore in 1990-1991 and it rose to expenditure of India was Rs. 57498 crore Rs. 1779442 crore in 2014-2015, in 1990-1991 and it enlarged to Rs. indicating a growth of 43.75 per cent. 1424609 crore in 2014-2015, indicating The total central government revenue an increase of 95.96 per cent during the was Rs. 54990 crore in 1990-1991 and it post reform period. expanded to Rs. 1184164 crore in 2014-

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2015, reflecting a growth of 95.35 per crore in 1990-1991 and it enhanced to cent. The budget deficit of India was Rs. Rs. 2142708 crore in 2014-2015, 45888 crore in 1990-1991 and it enlarged recording a growth of 96.25 per cent in to Rs. 595278 crore in 2014-2015, the period of analysis. revealing a growth of 95.29 per cent. The states’ total expenditure was Rs. 80232

Table 5 Growth of Financial Pattern of India during the Pre Reform Period and Post Reform Period Tax GDP Ratio 1990-1991 2014-2015 Growth Rate Total expenditure 1000878 1779442 43.75 Total revenue 54990 1184164 95.35 GDP 45888 595278 92.29 States’ total expenditure 80232 2142708 96.25 States’ total income 62081 1847396 96.64 GDP 18151 295312 93.85 Source: Economic Survey of India 2014-2015 The states’ total income was Rs. 62081 1991 to post reform period 2014-2015, crore in 1990-1991 and it moved to Rs. growth of total states’ direct tax income 1847396 crore in 2014-2015, revealing an the second, growth of indirect net states’ increase of 96.64 per cent in the period of own tax income the third, growth of total analysis. The states’ budget deficit was net states’ own tax income the fourth, Rs. 18151 crore in 1990-1991 and it rose growth of total states’ tax income the to Rs. 295312 crore in 2014-2015, fifth, growth of indirect states total tax indicating a growth of 93.85 per cent in income the sixth, growth of direct net the period of analysis. states’ own tax income the seventh, Conclusion growth of net indirect central tax income It could be seen clearly from the above the eighth and growth of net total central discussion that the growth of central tax income the last. direct tax revenue ranks the first order It is evident from the tabular data during the pre reform period 1990-1991 analysis that the combined centre states’ to post reform period 2014-2015, growth indirect tax GDP ratio and states’ share of combined centre-states’ direct tax the in indirect central tax GDP ratio have second, growth of states’ share in direct become negative during the pre reform central tax the third, growth of states’ period 1990-1991 to post reform period share to total central tax the fourth, 2014-2015. A more than 50 per cent growth of combined centre-states tax growth has been observed with respect to revenue the fifth, growth of combined combined centre-states direct tax GDP centre-states indirect tax the seventh, ratio, states’ share in direct central tax growth of states’ share in indirect central GDP ratio during the pre reform period tax the eighth and growth of central 1990-1991 to post reform period 2014- indirect tax the last. 2015. It could be noted that higher the It is observed that the growth of net tax GDP ratio indicates the better direct centre tax income records the first performance of taxation system in India. rank during the pre reform period 1990-

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It is evident from the tabular Saxena, N.C., “Improving Effectiveness data analysis that the growth of non tax of Government Programmes: An Agenda revenue ranks the first order during the of Reform for the 10th Plan,” paper pre reform period 1990-1991 to post presented at a conference on “Fiscal reform period 2014-2015, growth of Policies to Accelerate Growth,” capital development expenditure the organized by the World Bank, New Delhi, second, growth of tax revenue the third, May 8, 2001, available at growth of combined centre-states www.fiscalconf.org. development expenditure the fourth, growth of revenue development Stern, Nicholas, “Building a Climate for expenditure the fifth, growth of Investment, Growth and Poverty combined centre-states non development Reduction in India,” in “A Strategy for expenditure the sixth, growth of total Development,” published by World Bank expenditure and capital non development (2001). expenditure the seventh and growth of loan and advances the last. It is concluded that the growth of states’ total income ranks the first position during the pre reform period 1990-1991 to post reform period 2014- 2015, growth of states’ total expenditure the second, growth of central revenue the third, growth of states’ budget deficit the fourth, growth of central budget deficit the fifth and growth of total expenditure the last.

References

Chelliah, Raja J (1999), "Economic Reform Strategy for the Next Decade", Economic and Political Weekly, Vol. 34, No. 36.

Ahluwalia, Isher J., “Industrial Growth in India: Stagnation since the mid- sixties,” Oxford University Press, New Delhi, 1995.

Ahluwalia, Montek S., “India’s Economic Reforms: An Appraisal,” in Jeffrey Sachs and Nirupam Bajpa’s (eds.), “India in the Era of Economic Reform,” Oxford University Press, New Delhi, 2000.

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Challenges and Opportunities in Micro, Small and Medium Enterprises in India

Sk.Asha Begum, Research Scholar, Department of Economics, Acharya Nagarjuna University, Guntur

Abstract Micro, small and medium enterprises play a provincial role in the economic and social development of the country. Micro small and medium enterprises play a key role in the industrialization of a developing nation. This is because they provide immediate large scale employment and have a comparatively higher labour- capital ratio. They need only a shorter gestation period and relatively smaller markets, to be economic, they need lower investment. the MSMES play an important role in assisting the bigger industries and the project so that the panned activity of the development work is timely attended to the setting up and the growth of all types of industries have the basic objective of profit making. However, it also contributes towards social justice and the development of the particular area, by way of trade and commerce. These industries also develop lots of entrepreneurs who in future, any play a bigger role in the development activities. MSMEs contribute 45% in the Industrial output, 40% of the export, employing more than 8,000 quality products for the Indian and International markets. It contribution to words GDP in 20% was 18% which increased 22% in 2012. These paper analyses in various challenges and opportunities associated with MSMEs in India. Key Word: Economic Growth, consumption, GDP, MSMEs, Enterprises. Introduction: entrepreneurs in their population have In developing economies, the small developed much faster as compared to savings of rural areas are contributing countries, which have lesser percentage more in establishing the small and micro of them in the society. In India, women enterprises in India. In the light of constitute around 48 percent of the demise of rural artisanship, population but their participation in the entrepreneurship has been given much economic activities is only 34 percent. As importance as well as empowerment too. per the Human Development Report The women empowerment has been (2007), India ranks 96th on the gender important role of Governments and other related development index of 137 non-governmental organizations. The nations. The gender empowerment women are endowed with innate power measures, which estimate the extent of that can make them successful women participation in the country's entrepreneurs. Women entrepreneurship economic and political activities, rank is inherent and also a natural process. India as 110th of the 166 nations. In the Entrepreneurship is considered as one of emerging complex social scenario, women the most important factors contributing have a pivotal role to play. Now women to the economic development of the have taken up entrepreneurial role in society. There are evidences to believe order to create a meaning for themselves. that countries which have The traditional roles of housewives are proportionately higher percentage of gradually changing into women

www.ijar.org.in 17 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] entrepreneurs. Some of the factors in the growth of women responsible for these changes are better entrepreneurship are mainly lack of education, changing socio cultural values interaction with successful and need for supplementary income. entrepreneurs, social un-acceptance as When proper exposure, education and women entrepreneurs, family knowledge are imparted to them, Indian responsibility, gender discrimination, women will prove themselves to be missing network, low priority given by highly potential productive force for the bankers to provide loan to women development of the nation. entrepreneurs. 2. Tambunan, (2009), Concept of Women Entrepreneurs made a study on recent developments of Women Entrepreneurs may be defined as women entrepreneurs in Asian the women or a group of women who developing countries. The study focused initiate, organize and operate a business mainly on women entrepreneurs in small enterprise. The Government of India has and medium enterprises based on data defined women entrepreneurs as ―an analysis and review of recent key enterprise owned and controlled by literature. women having a minimum financial Objectives of the paper: interest of 51 per cent of the capital and The study was planned with the giving at least 51 per cent of the following objectives: employment generated in the enterprise  To identify the reasons for women to women‖. Women entrepreneurs for involving themselves in engaged in business due to push and pull entrepreneurial activities. factors which encourage women to have  To make an evaluation of people’s an independent occupation and stands on opinion about women their on legs. A sense towards entrepreneurship. independent decision-making on their  The performance of micro small and life and career is the motivational factor medium entrepreneur in India. behind  To study the Opportunities of this urge. Saddled with household chores MSMEs. and domestic responsibilities women  Micro Small and Medium want to get independence. Under the Enterprises (MSMEs) Challenges. influence of these factors the women entrepreneurs choose a profession as a Methodology: challenge and as an urge to do something The study is based on secondary data new. Such a situation is described as pull which is collected from the published factors. While in push factors women reports of RBI, NABARD, Census engaged in business activities due to Surveys, SSI Reports, newspapers, family compulsion and the responsibility journals, articles, websites, etc. is thrust upon them. Policies and Schemes for Women Review of Literature: Singh, 2008, Entrepreneurs in India identifies the reasons & influencing In India, the Micro, Small & factors behind entry of women in Medium Enterprises development entrepreneurship. He explained the organizations, various State Small characteristics of their businesses in Industries Development Corporations, Indian context and also obstacles & the nationalized banks and even NGOs challenges. He mentioned the obstacles are conducting various programmes www.ijar.org.in 18 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] including Entrepreneurship IMPACT OF GLOBALISATION ON Development Programmes (EDPs) to SMEs cater to the needs of potential women Globalization denotes the integration of entrepreneurs, who may not have the domestic economy with the world adequate educational background and economy. It enables the free movement skills. The Office of DC (MSME) has also of goods, services, ideas, capital and opened a Women Cell to provide technology across national borders. The coordination and assistance to women process of globalisation accelerated since entrepreneurs facing specific problems. the beginning of 1980s and Subsequent There are also several other schemes of to the establishment of World Trade the government at central and state Organisation (WTO) on 1st January level, which provide assistance for setting 1995.The globalisation in itself is up training-cum-income generating controversial. It has gains and losses as activities for needy women to make them well. The strategy of every country is to economically independent. Small maximize the gains and minimize the Industries Development Bank of India losses. Globalization has paved the way (SIDBI) has also been implementing for unequal competition – a competition special schemes for women between giant multinational companies entrepreneurs. In addition to the special and Warf Indian enterprises. schemes for women entrepreneurs, various government schemes for MSMEs The employment potential of micro, also provide certain special incentives small and medium enterprises is really and concessions for women surprising. The employment potential entrepreneurs. For instance, under was so robust even at the time of global Prime Minister’s Rozgar Yojana (PMRY), economic crisis. However this could also preference is given to women be due to the increase in fixed beneficiaries. The government has also investment in that period. The impact of made several relaxations for women to fixed investment on the exports sector is facilitate the participation of women very low as compared to the beneficiaries in this scheme. Similarly, manufacturing and employment sectors. under the MSE Cluster Development  Micro Small and Medium Programme by Ministry of MSME, the Enterprises (MSMEs) contribution from the Ministry of MSME Challenges varies between 30-80% of the total Micro Small and Medium Enterprises project in case of hard intervention, but facing many problems in their day - to - in the case of clusters owned and day operations. They found it difficult to managed by women entrepreneurs, sell their products, and they cannot contribution of the M/o MSME could be spend on Advertising, Marketing, and up to 90% of the project cost. Similarly, Research, etc. They are also facing stiff under the Credit Guarantee Fund competition from large and other country Scheme for Micro and Small Enterprises, which is exported their products into our the guarantee cover is generally available country like China, Thailand, and up to 75% of the loans extended; however Germany. Financial Institutions have the extent of guarantee cover is 80% for limited Exposure on MSMEs. There are MSEs operated and/ or owned by women. multiple options for MSMEs sector get Result and Discussion: assistance, but they are unable to www.ijar.org.in 19 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] survival. They are selling their products 7. Don’t have own marketing networks immediate because of weak bargaining 8. Limited access to Equity capital power and need quick money. MSMEs 9. High Cost of Raw Materials are unable to get required support from 10. Problems of Storage, Designing, the concern Government Financial Packing Institutions, Banks. The challenges are 11. Lack of Access to Global Markets 1. Access to finance 12MSMEs are difficult in recruiting 2. Collateral Requirements motivated and technical personnel 3. Access to Infrastructure 13. Lack of latest Technology 4. Facing stiff competition from large 14. Tough competition from large firms firms 15MSMEs are difficult to compete with 5. They cannot spend on Advertising, another country Imported Goods Sales, Promotion, Marketing, and 16. Low production capacity Research 6. Ineffective Marketing Strategy Table-1 Performance of Micro, Small and Medium Enterprises in India Year MSMEs Fixed Production Employment Exports 1992-93 73.51 109623 84413 174.84 17784 1993-94 76.49 115795 98796 182.64 25307 1994-95 79.6 123790 122154 191.4 29068 1995-96 82.84 125750 147712 197.93 36470 1996-97 86.21 130560 167805 205.85 39248 1997-98 89.71 133242 187217 213.16 44442 1998-99 93.36 135482 210454 220.55 48979 1999-2000 97.5 139982 233760 229.1 54200 2000-01 101.1 146845 261297 238.7 69797 2001-02 105.21 154349 282270 249.33 71244 2002-03 109.49 162317 314850 260.21 86013 2003-04 113.95 170219 364547 271.42 97644 2004-05 118.59 178699 429796 282.57 124417 2005-06 123.42 188113 497842 294.91 150242 2006-07 261.01 500758 709398 594.61 182538 2007-08 272.79 558190 790759 626.34 202017 2008-09 285.16 621753 880805 659.35 NA 2009-10 298.16 693532 982919 695.35 NA 2010-11 311.52 773487 1095758 732.17 NA 2011-2012 316.82 843389 1016859 843.18 NA Source: Annual Report of MSME – employment sector for people most of the Ministry of micro, small and medium MSMEs are from rural areas every year enterprises. New Delhi MSMEs sector generating 3,000 Micro Small and Medium Enterprises employments for the people. The MSMEs (MSMEs): Opportunities sector forever Classic. Many problems Nowadays many people depend on upon are encountering the MSMEs but still the MSMEs sector this sector is self-

www.ijar.org.in 20 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] this sector is growing continuously. The MSMEs is important. Government needs opportunities of MSMEs are: to strengthen credit flow to the MSE  Ideal Platform for entrepreneurs sector, particularly micro sector by strict to produce more products implementation of guidelines for year-on-  Strong Growth Potential year growth of MSE credit and its  Low Investment Requirements prescribed flow to the micro-sector. Technology Up gradation And  Operational Flexibility Support:  High contribution for the There is a need to support domestic market innovative ideas to develop them to  Technology oriented Enterprises marketable products, facilitate linkage of  Exporting products from country MSME Clusters/Mini Clusters to public  Raising Domestic Sales and private R&Dinstitutions and finally  Increasing National GDP subsidies the cost of technology available  Vibrant Domestic Demand in the international market. Liberal  Helps to Emerging Economy and Government policies and assistance are  MSMEs are expected to become pre-requisites for nurturing innovative one of the fastest growing sectors ideas. Infrastructure Development in India Cluster based intervention has been CREDIT & FINANCE acknowledged as one of the key Credit is a crucial input for promoting strategies for comprehensive growth of MSME sector, particularly the development of Indian industries, MSE sector, in particularly the Micro and Small View of its limited access to alternative Enterprises (MSEs). The Ministry of sources of finance. Various estimates on MSME has adopted the cluster approach the credit availability to the MSME as a key strategy for enhancing the sector however indicate a serious credit technical and physical infrastructure as gap. Though the heterogeneous and well as capacity building of micro & small unorganized nature of the sector poses enterprises and their collectives in the inherent challenges for a credible country to strengthen and expand estimate, the fact remains that there is existing IID Scheme of M/o MSME, the considerable credit gap, which is a Group recommends that the eligible matter of serious concern and needs to project cost for infrastructure be bridged if the sector has to foray into development (excluding cost of land) for the next level of growth trajectory. While Government of India assistance should acknowledging the efforts of the be enhanced from present limit of Rs. 10 Government, RBI and Financial crores to Rs.15 crores. To complement Institutions in providing adequate, the efforts of State and Central timely and affordable credit to the sector Government, private sector (companies which has resulted in substantial and SPVs) should also be allowed for increase in the number of accounts and development of infrastructure total credit flow, the Working Group felt development, with Government of India the need for serious policy prescriptions assistance under MSE-CDP. Assistance that goes beyond traditional ways of for up gradation of existing industrial fixing targets alone. Building an eco- estate may be made more attractive in system for facilitating credit flow to order to get proposals from State www.ijar.org.in 21 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Government for up gradation of existing SMEs of countries like Japan, Korea etc. and demand based additional IID emerged as global players. The PM’s projects may be permitted in district, Task Force has already taken significant subject to 90% allotment and 50% setting initiatives in this regard. The above up of units in approved IID projects in recommendations of this Working Group one district. The Group recommends for the 12th Plan period will be vital continuation of the Infrastructure enabler towards implementation of the development scheme with increased initiatives of the Task Force through allocation. participative, transparent and scalable INSTITUTIONAL STRUCTURE policies and schemes of Government of The Institutional and legal framework India Micro, Small and Medium for promotion and development of Micro, Enterprises (MSMEs) contribute to Small &Medium Enterprise (MSME) economic development in various ways sector of India is spread both at the such as creating employment National & State level. The primary opportunities for rural and urban responsibility for the development of population, providing goods & services at MSMEs lies with the State Governments. affordable costs by offering innovative Government of India supplements their solutions and sustainable development to efforts through a range of initiatives. The the economy as a whole. References: employment intensive MSME sector has suffered extensively due to plethora of laws, rules and regulations that have 1. Banerjee, A., Cole, S., and Duflo, E. accumulated during the years of control (2003). Bank financing in India. Mimeo: regime. Ensuring the compliance with so MIT. many regulations coupled with Inspector 2. Carbo, S., Rodrı´guez, F., and Udell, Raj has stifled growth of the sector G. (2008). Bank lending, financing considerably. Prime Minister’s Task constraints and SME investment. Force, in its report, have made Federal Reserve Bank of Chicago, WP significant recommendations on 2008e2004. liberalizing the policy regime for the http://www.dnb.co.in/SME_cluster_series MSME sector, viz., introduction of 2012 Nagpur/PDF/MSMEs_in_India.pdf Insolvency Act, liberalization of labour 3. Desai Vasant, “Small Scale Industries laws, liberalisation of Apprenticeship and Entrepreneurship” Himalaya Act. Publishing House, New Delhi, P. 15

4. Small and Medium Enterprises- Conclusion: MSME sector of India is challenges and opportunities- Dr. J.S. today at the gateway of global growth on Juneja, Excel Books New Delhi- 1998 p. 9 the strength of competitive and quality 5. “Initiative Enterprise and Economic product range. However, facilitation Crisis in India” A K Agarwal, from the Government is required to Munshiram Manoharlal, Kalyani minimize the transaction costs of Publishers, 1975, P. 12. technology up gradation, market 6. Yerram Raju B., The Bologna Charter penetration, modernization of for SMEs – 2000 Quoted “Small infrastructure etc. History shows that Industries in India” Excel Books, New only with persistent and effective Delhi, 2005, P. 13. Government support in these areas, the www.ijar.org.in 22 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Agricultural credit in India: An overview of rural credit analysis

Bandameedi Nagaraju. Doctoral Research Scholar, Department of Economics, Osmania University, Hyderabad, T.S

Abstract: The main objective of this paper is to know and critically analyse the progress and achievements of the agricultural rural credit in India. The analysis states that the credit delivery to the agriculture sector continues to be insufficient. It appears that the banking system is still hesitant on various grounds to provide credit to small and marginal farmers. Due to declining in public capital formation in the rural and agriculture sector and the persistent unenthusiastic attitude of rural bankers towards formal financing, the planners and policymakers are believe on microfinance to suitably supplement formal banking in rural India. In India strengthening of agriculture is important for elimination of rural poverty, food insecurity, unemployment and sustainability of natural resources. The time has come to redefine agriculture as the integrated activities relating to production, processing, marketing, distribution, utilization and delivered at each level individually. Agricultural credit development strategy till today was addressing institutionalization of credit at farmer’s level in marketing, trade, processing and agribusiness. Keywords: Agriculture, Rural Credit, Institutional Agencies, Scheduled Commercial Banks and Co-Operatives. 1926-27 emphasized on access to rural Introduction: credit. The Reserve Bank of India Act, Indian agriculture has been always in 1934 was passed leading to need for credit and dependent on establishment of the Reserve Bank of traditional credit with high interest India in 1935 like any other central rates. This norm of high interest rate for banks it has specific provision for agriculture credit has caused serious agricultural credit. As a first step exploitation resulting in rural indebtness towards rural institutionalized credit causing serious concern over a century. Reserve Bank of India has conducted This problem of providing cheap and different studies in 1936 and 1937 and institutionalized credit has called found that major share of the credit attention of the British government in required by the rural community was early 1870s. The government has started financed by the non-institutional and providing credit in the form of Takkavi share of institutional credit was loans during the drought years. The first negligible. Until 1950 the Reserve bank step for institutionalization has begun has taken several steps to strengthen the with the cooperative societies act in cooperative societies to provide 1904. Based on the report of the institutionalized credit to the rural Maclagan Committee on Cooperation in community, a new structure was evolved 1915 by the end of 1930 a 3-tier to provide two types of time bound cooperative credit structure has been credits namely short term and loan term established in all provinces. Even The credit. Despite of many measures till Royal Commission on Agriculture in 1951 the institutional credit stood at 4.2 www.ijar.org.in 23 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] per cent of total agriculture credit, out of “Indian farmer is born in debt, lives in which 3.3 per cent contributed by debt and dies in debt”. In order to cooperatives, and 0.9 per cent by mitigate the problems of the farming commercial banks. The All India Rural community, the Cooperative Credit Credit Survey (1954) has observed in its Societies Act was passed in 1904, which survey that agricultural credit fell short permitted the formation of credit of the right quantity, was not of the right societies. They provided institutional type, did not serve the right purpose and support to farmers for short, medium often failed to go to the right people. The and long term purposes. Subsequently, nationalization of major commercial tiers at state and district levels were too banks in 1969 (and in 1980) has conceived to strength these credit co- encouraged the commercial banking operatives. Apart from these cooperative system to involve in extending institutions, nationalization of agricultural credit. To encourage the commercial banks and introduction of neglected sectors the concept of priority regional rural banks also helped sector was introduced in 1969 which increasing credit supply to farmers. As included agriculture. Even today the RBI mentioned before, by now the Indian is insisting for target of 40 percent net credit cooperatives have a century long bank credit towards priority sector with history. During this period these a sub sector target for agriculture with institutional financing agencies failed to 18 percent (out of which 13.5 per cent for a large extend, to meet the requirements direct agriculture and 4.5 per cent for (consumption and production) of the indirect agriculture). To have better farmers. Some of the factors responsible planning at the ground level the lead for their failure are inadequate supply of bank scheme was introduced under credit, poor recovery, demand - supply which each district is a unit and a gaps, interference by politicians, lack of commercial bank with highest number of monitoring, mis-utilization of credit, branch coverage is appointed as District problems in identification of target lead bank to monitor and report the groups, high transaction costs, and lags performance in the targeted sectors like in time, natural calamities and agriculture. The green revolution has competition from informal credit called for high credit requirement for the agencies. purchaseof high yielding seeds, irrigation A number of committees such as the systems, fertilizers and chemical Rural Banking Inquiry Committee pesticides. Along with crop yields the cost (1949), the All India Rural Credit Survey of production has raised drastically Committee (1954), the Committee on calling huge credit requirement. This Cooperative Credit (1960), the All India huge credit requirement was not met by Rural Debt and Investment Survey the cooperatives or commercial banks for (1962), the All India Rural Credit Review their own limitations. Committee (1969), the Working Group Review of Literature: on Rural Banks (1975), the Committee to Credit is a crucial input process of Review Arrangement for Institutional development. For historical reasons, Credit for Agriculture and Rural Indian farming community failed to Development (1981), the Agricultural make huge investments in agriculture. Review Committee (1989) and the There is an adage which says that Narasimhan Committee (1991 and 1998) www.ijar.org.in 24 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] were constituted by the Government of assets, because of heavy over dues in India to look into their working and repayment". Even so, in the 1950s and made several recommendations to 1960s, the way forward was seen to lie in improve their health and functioning of cooperative credit societies. These the total credit provided by these cooperatives were to take the lead in the institutions 44 per cent was met by the Integrated Scheme of Rural Credit cooperative banks and 48 per cent by the suggested by the AIRCS. The share of commercial banks leaving a paltry cooperatives in rural credit did rise to amount by the regional rural banks. cross 20% in 1971. Today, India's cooperative credit structure (CCS), with Objective of the study: over 13 crore members (including 6 crore  The overall objective of the study borrowers), constitutes one of the largest is to evaluate the impact of banking and rural financial systems in the world. The financial sector reforms on the rural over 1 lakh Primary Agriculture Credit credit delivery system. Societies (PACS) can, in many ways, be regarded as the veritable bedrock of Towards the end of objective mentioned, India's rural economy. The CCS has 50 the following is the methodology percent more clients than commercial adopted. banks and Regional Rural Banks (RRBs) Research Methodology: put together. Directly or indirectly, it The nature of research is exploratory. covers nearly half of India's total The study is based on secondary data, population. The CCS services farm input which were collected from thesecondary distribution, crop production, processing source of the data were collected from and marketing as also dairying, weaving various sources. Secondary data have and textiles. been collected from published and However, the CCS has never realized the unpublished records of Government enormous potential opened up by its vast Departments, RBI, Lead Bank Offices, outreach. According to the Task Force on branches and regional offices of Revival of Rural Cooperative Credit commercial banks and NABARD office. Institutions, this owes mainly to a "deep 1947-1969: Focus on Cooperatives: impairment of governance" (GoI, 2005, The historic All India Rural Credit p.18). While they were originally Survey (AIRCS) carried out in 1954 visualized as member-driven, democratic, confirmed that formal credit institutions self-governing, self-reliant institutions, provided less than 9% of rural credit cooperatives have over the years, needs in India Moneylenders, traders and constantly looked up to the state for rich landlords accounted for more than several basic functions. The Task Force 75% of rural credit. Cooperative credit describes in detail how state societies had already been in existence governments have become the dominant for 50 years but their share in rural shareholders, managers, regulators, credit was still less than 5 percent. The supervisors and auditors of the CCS. The 1945 Cooperative Planning Committee concept of mutuality (with savings and had discerned early signs of sickness in credit functions going together), that India's cooperative movement, finding provided strength to cooperatives all over that a large number of cooperatives were the world, has been missing in India. "saddled with the problem of frozen This "borrower driven" system is beset www.ijar.org.in 25 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] with conflict of interest and has led to that "advances by private banks were regulatory arbitrage, recurrent losses, diverted to sister companies of the banks deposit Erosion, poor portfolio quality or to companies in which their directors and a loss of competitive edge for the had an interest" (Chandrashekhar and cooperatives. Domination by richer Ray, 2005, p.12). Thus, cooperatives elements in the rural elite that remained dominated by the rural elite characterized cooperatives in the colonial and banks continued to have an urban period continues to be an abiding feature bias throughout the twenty years after of these institutions even after independence. In trying to understand independence. the case for nationalization, it is useful to 1969-1991: Nationalization of Banks: remember that government control over In 1951, the AIRCS found that the share banking was the norm in most low- of banks in rural credit was less than one income countries in the four decades percent. Even through the 1950s and after the First World War (Burgess and 1960s, the role of private commercial Pande, 2002,p.3). Similar state-led rural banks in rural credit remained minimal finance programmes spread across the and indirect. The AIRCS itself had developing world in the post-colonial wanted involvement of these banks in period. State control over banking to act agricultural marketing and processing as an engine of structural change and the but not directlyin farm output. Rural attack on poverty was part of the branches of commercial banks were few orthodoxy of development economics at and far between despite a 1954 RBI that time (Besley, 1995). Even though directive for them to open at least one they lament it, La Porta et al (2002), branch in unbanked rural and semi-rural assemble data on government ownership areas for every branch opened in of banks around the world, which show previously banked areas (Meyer and that such ownership is large and Nagarajan, 2000, p.172). The Imperial pervasive. In the average country, more Bank of India was nationalized in 1955 than 40 percent of the equity of 10 and the new State Bank of India was largest banks remained in government asked to open 400 branches in semi- hands even as recently as 1995. urban areas and start agricultural lending, even if at a loss. Even so right Problems of Rural Credit in India: up to 1971, the share of banks in rural credit was no more than 2.4 percent and i. Insufficiency: In spite of expansion of most of these loans were made to rural credit structure, the volume of plantations. Their main activity was to rural credit in the country is still finance agro-processing firms and insufficient as compared to its growing purchase of bonds floated by land requirement arising out of increase in development banks. Until the end of the prices of agricultural inputs. 1960s, the overwhelming share in ii. Inadequate Amount of Sanction: commercial bank credit was that of The amount of loan sanctioned to the industry (62 percent) and trade and farmers by the agencies is also very commerce (26 percent). Within industry, much inadequate for meeting their the distribution of credit was skewed in different aspects of agricultural favour of large borrowers (Sen and operations. Considering the amount of Vaidya, 1997). It has also been alleged www.ijar.org.in 26 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

loan sanctioned as inadequate and Agriculture credit in India is integrated insignificant, the farmers often divert with marketing, storage, processing and such loan for unproductive purposes trading. The reforms in agriculture and thereby dilute the very purpose of credit have been confined to such loan. institutionalized credit. Similarly, in iii. Lesser Attention of Poor marketing only in regulate to create Farmers: Rural credit agencies and its efficient and effective marketing schemes have failed to meet the needs channels. Different public sector of the small and marginal farmers. organizations, cooperatives and other Thus, lesser attention has been given formal/informal bodies have on the credit needs of the needy beeninvolved in the process. There have farmers whereas the comparatively been many Public sector organizations well-to-do farmers are getting more which include Food Corporation of India attention from the credit agencies for (FCI); Cotton Corporation of India; Jute their better credit worthiness. Corporation of India; Commodity Boards; iv. Growing Over-dues: The APEDA; STC; MPEDA; Commission for problem of over-dues in agricultural Agricultural Costs and Prices; credit continues to be an area of Directorate of Marketing and Inspection; concern. The recovery of agricultural Departments of Food and Civil Supplies; advances to various institutions is also State Agricultural Marketing Boards; not at all satisfactory. In 1997-98, the Central and State Warehousing recovery of agricultural advances of Corporations; and Agricultural Produce commercial banks, co-operative banks Market Committees. The role and and regional rural banks were 63 per functions of each of these differ and cent, 66 per cent and 57 per cent include policy formulation, respectively. Such growing over-dues implementation, supervision, facilitation have also been resulted from poor and direct entry in the market. In spit of repaying capacity of farmers. As a such structural regulated markets the result of that, the credit agencies are farmers are being exploited in all means. becoming wary of granting loan to The integrated rural credit approach is farmers. focusing on providing credit for all the v. Inadequate Institutional requirements of the farmer through an Coverage: In India, the institutional institutional credit to all his credit arrangement continues to be requirements at all the levels so that inadequate as compared to its growing time, place, and form utilities are passed needs. The development of co-operative to the farmers depending on the produce. credit institutions like Primary But this is not an easy task as operating agricultural credit societies, land these many credit limits by financially development banks, commercial banks illiterate farmer. To overcome these and regional rural banks, have failed to problems new avenues in information cover the entire rural farmers of the technology have to be used for the country. purpose. The major principle in this approach is to provide all the credit Integrated Rural Credit Approach requirements of the farmer as per the For Food Security and produce cultivated and level of his credit Sustainability in Agriculture: requirement depending on the extent he

www.ijar.org.in 27 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] want to go for storage or processing or yielding seeds, application of chemical both this will change according to fertilizers and pesticides, mechanization produce and farmers knowledge and and making availability of Environment. Once these things get institutionalized credit for purchasing decided the farmer has flexible to use the the preceding inputs, as result the Indian credit requirement as per the agriculture has become commercialized environment he is operating from time to but not profitable to the producer. This time. To smoothen the process the total commercialization has attracted more financial transactions are done through number of middle men making the single account. marketing channels inefficient by Infrastructural Requirements: delivering the produce at inflated prices to the consumer and negligible margin to In this approach a credit hub is formed the producer making him indebt. This is by integrating all the requirements of the discouraging the farmer to move towards farmer. The hub consists of consumables capital intensive commercialized & input supplies, a regulated market agriculture practices which only can with processing facility and ware house. serve the future food requirements of the Additional service provider like country. This has assumed added veterinary services and extension importance to integrate efficient services are added advantage to the hub. marketing and rural credit systems. The All these are interlinked and integrated time has come to redefine agriculture as with tie ups with credit provider. The the integrated activities relating to facilities vary from hub to hub depending production, processing, marketing, on the crop produced in the area. But distribution, utilization and delivered at this requires huge credit investments for each level individually. Agricultural infrastructure development. This can be credit development strategy till today achieved by public private partnership. was addressing institutionalization of This constitutes to form physically credit at farmer’s level in marketing, integrated credit hubs. Information trade, processing and agribusiness. As a Technology also provided avenues to result of efforts in the agriculture credit create virtually integrated credit hubs. delivery system, the share of private These require low investments than the money lenders (non institutional credit) physically integrated credit hubs because has decreased substantially from 93 in these hubs all the service providers are percent in early 1950’s to 31 per cent by located at different locations and 1991. But showing their presence as an integrated through common software. important and most attracted source of credit by increasing their share to 39 Conclusion: percent by 2002. One main reason for In India strengthening of agriculture is this is they have been always integral important for elimination of rural part of rural supply chain for inputs and poverty, food insecurity, unemployment marketing channels. The All India Rural and sustainability of natural resources. Credit Survey (1954) has quoted that But till today strengthening of agriculture credit in India fell short of agriculture was meant to be increasing the right quantity , was not of the right productivity by introduction of high type, did not sever the right purpose and often failed to go to the right people, www.ijar.org.in 28 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] even today this spells right rural credit with infrastructural requirements for production (input) , processing, marketing , distribution, utilization , trade with value added service like technology transfer at single point to form the rural credit hubs or virtual integration by utilization of the information technology create new Indian sustainable agriculture for food security.

References:

1. Agricultural Marketing And Rural Credit: Status, Issues And Reform Agenda: S. S. Acharya. 2. Reserve Bank of India Bulletin, October, Vol.53 No.10, pp.1185- 1190.Desai, Bhupat M. and N.V.Namboodri (1993). 3. Capoor, J (1999), “Structural Reforms in Agricultura land Rural Development Banks”, 4. Reserve Bank of India Bulletin, November 2004. 5. All India Rural Credit Review Committee (Chairman:B.Venkatappiah) 6. Rural Financial Institutions: Promotions and Performance, Oxford, New Delhi.

7. Food and Agriculture Organisation (2004), FAOSTAT (website), Rome. 8. Government of India: Economic Survey, various issues, Ministry of Finance, New Delhi.

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Previous Decades of Economic Reforms strategies in India Dr. Dasari Nivas Dept.of Economics, Kakatiya University, WGL

Abstract Indian economic reforms were gradual in nature and were primarily directed to trade and industry, though in Indian economy foreign trade never constituted a major part and though India was a large country with continental dimensions, her share in the global trade was always negligible, being less than even one present. India adopted current account convertibility which was as one of the main conditions of strategy of globalization. But this feature was considered as the main saviour of the Indian economy during the 1997 East Asian economic crisis and probably also during the 2008-09 global melt down though many like to attribute such achievements to the strong fundamentals of the Indian economy which were not very correct as claimed by such experts. It is to be noted that though globalization increased both imports and exports for India exports could never over took imports. In this paper analyzed about previous two decades economic reforms strategies in India Keywords: India, Economic Reforms, Globalization, Business, Market etc,. Introduction complete U-turn in economic policy. Economic reforms initiated in India since Where the neo-liberal market capitalism 1991 may be considered, borrowing the actually held the sway. In this situation terminology of Professor Amiya Kumar it was presumed that market-based Dasgupta, as one of the economic epochs economy replaced the state guided one after the inception of economic planning and presumed that a country is best in 1951 and the so-called ‘Green governed where there is least governance revolution’ in wheat and paddy in 1969 from the state. In this context it was also which substantially changed the features felt that the government should have no and structure of the Indian economy in a business in business. Nature of Economic Reforms permanent manner. Some peoples also consider the incidence of bank It have now completed two decades of nationalization in 1969 as another experience with this economic reforms significant economic incident of strategy, also known as New Economic comparable magnitude impact. The Policy (NEP), and India experienced economic reforms in India basically varied impacts in every sphere of the depended, at least theoretically, on the economy and human society. This has gains from a competitive market, global been achieved through the policies of free trade and efficiency of the private structural adjustment coupled with LPG sector. In fact, even as late as in 1976 strategies namely liberalization, through the 42nd Amendment of the privatization and globalization. constitution, India declared herself as a However, she also retained the socialist country; this nomenclature and centralized planning technique as the system of centralized economic mentioned earlier with decentralization planning are still continuing even now, at the panchayat level. Of course, it has though she adopted since 1991 a been said that this planning is now www.ijar.org.in 30 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] changing its character from its original the economy, especially in the foreign commanding type to a new indicative trade sector since 1980s. But as a type which will actually facilitate that consequence of the unwise import working of the market economy. At the liberalization policy, India confronted same time, the policy of globalization has with a very acute balance of payments not been full- fledged one. If we mean by crisis with only foreign reserves adequate globalization a free movement of factors to meet two weeks of imports payments of production as far as possible. The and she had to pawn national gold to a current nature of globalization has been foreign bank to tide over the crisis at a partial or a truncated one because least temporarily. India’s credit rating under the present system. Globalization also came down shapely and she had no meant free movement of finance and other alternative but to take conditional capital and not for labour in which India assistance from the IMF and the world has comparative advantage and not in bank leading to this upheaval in capital like the high income Economic policy in 1991, which we have industrialized countries of the west. already preferred to be called an epoch in The question arises specially among the Indian economic history. students of the present generation about Direction of Reforms the causes of adopting such epochal Indian economic reforms were gradual in changes which nearly moved the nature and were primarily directed to economy through a new way not trade and industry, though in Indian experienced till independence. It should economy foreign trade never constituted be remembered that from the very a major part and though india was a beginning, India depended on the virtues large country with continental of trickle- down theory of benefits where dimensions, her share in the global trade it was expected that the additional was always negligible, being less than growth of income will ultimately trickle even one present. India adopted current down to the bottom level of society and it account convertibility which was as one will benefit all economically and, in turn of the main conditions of strategy of society. It was expected that if we take globalization. But this feature was care of the GDP, GDP will take care of considered as the main saviour of the the everything else including Indian economy during the 1997 East employment and Human Development. Asian economic crisis and probably also But, ultimately it was observed that during the 2008-09 global melt down through successive 5 year economic plans though many like to attribute such India could achieve on average a growth achievements to the strong fundamentals rate of 3.5% for year which was bound to of the Indian economy which were not be too low to provide the benefits of the very correct as claimed by such experts. bottom level. Naturally a section of It is to be noted that though Indian economics and policy makers globalization increased both imports and started to search for policies to achieve a exports for India exports could never higher rate of income growth and some over took imports. It has been quiet of them like Raj Krishna even called this natural as the truncated pro-capital rate have the Hindu rate of growth. To globalization process could help rich achieve this end officially also policies capital intensive western countries were adopted to relax the restrictions in (though not up to the expected / www.ijar.org.in 31 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] predicted levels) and put the labour countries if some event takes place in the intensive Indian economy under stress. country with global consequences. As globalisation process had distinct Moreover, during the initial phase of preferences, it led to gradual and rapid economical reforms it has been obtained increase in inequalities among the that we require on average a 7% annual nations, regions and the people. All such growth of GDP to eradicate poverty from inequalities actually reduced positive our country but this did not take place impacts of higher rates of income growth and India’s newly elected president in his that took place since economic reforms in inaugural speech had to give emphasis on our country. The inherent contradictions finding out ways to put the word poverty of this globalization process have come in in the past and also admitted that the to fore front during the recent global trickledown theory of benefits did not meltdown were the financial institutions work in India as expected. and the corporate sectors had to frantically approach the much despised Neglect of Agriculture government for grants for their survival, Neglect of investment in agriculture a feature which goes against basic since 2nd Five Year Plan and also the philosophy of globalization. negative impacts of green revolution Inadequate Growth revealed that since the mid-1980’s and Though one of the main objectives of the the 2007-08 global food crisis which led current Indian economic reforms was to to food security crisis in as many as 37 initiate a higher rate of GDP growth, yet countries as identified by the FAO it should be remembered that Indian transformed the food sufficient Indian GDP started to grow a higher rate only economy in to one facing food inflation since the beginning of the second decade and food insecurity. The Government of of economic reforms and that too India has planned to enact food security coinciding with a phase of jobless growth Act to provide food security to maximum leading to initiation to NREGA in 2005, a possible number of people and also to flagship programme to counter implement the highly debatable second unemployment and poverty which has green or ever green revolution based on been largely ecological in rural areas. In corporate led gene – technology. It may fact, due to structural adjustment be mentioned here that the enactment of programme adopted in the initial years of this very crucial pro-people legislation is economic reforms, growth rate of GDP taking an unduly long time due to the actually received a setback and later on it debate on the subsidy that the grew at a rate of comparable with the government had to bear to bring rate of growth registered in 1980’s. The maximum number of people under its high rate of income growth again came purview. Moreover, the Government is down since 2007 as a consequence of prone to act not only on the same lines of global melt-down though it was claimed the green revolution but also is by the authorities that India would depending on the same expert who remain relatively unaffected from the initiated in 1969 green revolution with undesirable consequences of such events all its negative consequences. The faith due to her strong fundamentals. In fact, on the gene technology for enhancement under the present globalization it is of for agricultural productivity is yet to difficult to avoid the impact by other be properly tested for the Indian soil as www.ijar.org.in 32 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] we have noticed the adverse effects of pattern of this sector, which is such techniques in case of cotton and we considered to the major segment of the have to postpone the process of its economic growth of any modern implementation encase of brinjle. On the economy, has been changed drastically other hand, the authorities are not since the beginning of the economic paying attention to rapidly reduce the reforms in India. We noticed that rain fed cultivable areas increase gradually the entrepreneur based agricultural productivity by converting competitive industrialization process has more crop system into a multi cropping been substituted by corporate led and one. The government always depended MNC dominated process which on big areas for irrigation but at the ultimately shifted the operating areas same time it had to take its evil from manufacturing to mining and consequences due to submergence of export oriented agriculture with huge areas of land and forest and also emphasis on SEZ and contract forming uprooted large sections of the population, which exhibited other proves from of mostly tribal and SC’s from their economic growth. As a consequence of habitats leading to the emergence of the the transformation we observe that new paradoxical terminology gradually the benefits of competitive development oustees in the literature of industrialisation are no longer available economic development. On the other and there is a reign of terror in mineral hand the proper emphasis on medium rich tribal dominated areas of MP, and minor irrigation through excavation Chhattisgarh, Orissa, Jharkhand and of tanks, rain water harvesting and other areas for acquisition of such areas similar other measures was not given by evicting the tribal’s from their due emphasis. Naturally even after 65 traditional habitat of land and forest years of independence our finance which provided them their livelihoods, minister in his budget 2-11-12 had a pray though its subsistence level. This has for the blessing of Lord Varuna for also led to the rapid growth of extremism adequate and proper rainfall in the in the form of Naxals and /or Maoists country. In the current year also we find extending their influence to more than that our country is facing the onslaught one third districts of India. This growth of a severe drought when there is a of extremism due to lack of development dearth of rainfall in different parts of the of the down –trodden people has been country at the beginning of the rainy treated wrongly by the authorities as a season. law and order problem, only leading to a Changing Pattern of situation where a long term solution is Industrialisation becoming more and more difficult. Scams and Corruption The major emphasis of Indian economic reforms was on the rapid The reforms process has actually industrialisation of the economy and bypassed two crucial areas like legal and uplift of the Indian economy to a higher governance which made results obtained level. While it has been true that India particularly Skewed. Specially, the excelled in its IT industry, its overall rate liberalisation process which expected to of growth in the manufacturing sector relieve the economy from buerocratic has been much below expectations. corruption has actually led to a tsunami Moreover, the nature of the whole of scams and scandals since the very www.ijar.org.in 33 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] beginning of the reform era with the stream media which held in the recent Harshad Mehta case. Now, it is observed past the achievement of adulthood by that there has been highest accumulation Bengali cinema containing bed-scenes in of block money by the Indians, not by the a perverse form. richest countries like USA or Japan in Conclusion the Swiss banks. It is really unfortunate The two decades of economic reforms in that important personality like Chief India did result in to both positive and Advisor of the Finance Ministry has negative impacts no doubt. But what we publicly recommended the legalization of observe is that nearly three fourth of the bride and he has been supported by population had to live under abject another impartment personality of the poverty even after two decades of industrial sector. An idea of the level of economic reforms and now India is facing corruption can be obtained from the a situation where some are comparing it satyam case where the company usurped with 1991 as some credit rating agencies the salary of 20,000 fake employees and have reduced India’s rank in view of the this has been certified year after year by lower growth rates. It can be said that we an internationally reputed auditor firm. urgently need an effective strategy of It is really a question whether this is an reforming the reform process itself when exception or a discovery by change. the state can keep the market free and introduce a human face in it is LPG Non-Economic Impacts strategies. It is well known that if we The non-economic impacts of economic allow market to operate in a completely reforms are considered by many some free manner it is bound to degenerate in times as more serious than the negative to monopoly or monopolistic competition. economic impacts. In particular, in the It is the duty of the state to take steps in environment sector, which is not a manner, so that the market can remain included in the proper mark, the guiding free to avail the benefits of competition regulations are gradually relaxed for the by the society and the common people in sake of establishment of new industries particular. All these urgently need a in areas forbidden so far. The Ministry of redefinition of the state market Environment and forest often criticized relationship before it is too late while by the corporate sector for not giving India started her reform process with a clearance to their projects within a span TINA (there is no alternative) syndrome, of time. Another point deserves our it now needs to reform the reform attention considering its undesirable process as the present situation is effects for distorting the social fabric and another types of TINA (this is no cultural values. On the one hand we alternative) after two decades. speak about the empowerment of women through spread of education and employment but on the other hand there References is rapid spreads of semi-nude western 1. Anon(2012), “ Block Money culture were commoditization of women Deposits by Indian Largest, Says CBI”, through advertisement and internet is a The Economic Times, 14 Feb.p.3, common feature which is eroding the age Kolkata. old Indian values. As an illustration we 2. Ghosh, B.N. (2007), Gandhian may mention the attitude of the main Political Economy, Ashgate publications, www.ijar.org.in 34 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

London, Indian edn.(2012), Ane Books, A study of negative consequences, Delhi. palgrave macmillian, UK, and USA. 3. Kabra, K.N. (2010), “Two 9. -----(2007), Globalisation and the decades of Neoliberalism”, Alternative Indian Economic Development in the Two decades Economic Survey of India: Historical perspective”, R.K. Sen (ed), of Neoliberalism, Dannish Books, Delhi. Emerging Issues in Indian Economic 4. Nachane, D.M.(2011), India Development, Deep and Deep Development Report 2011, Oxford Publications, New Delhi. university Press, New Delhi. 10. ------(2009),” Truncated 5. Sen, Raj Kumar (1996), “The Globalisation, inequality and India”, inherent Contradictions of the NEP in Artha Beeksham, Vol-18, No.2 India”, in B. Roy (ed.): Socio Economic September. Transformation in India, Vol-I, 11. ------(2012a) ‘ Disquiting Issues of Kanishka Publishers Distributors, New Development in Developing Countries: Delhi. an Analysis with reference to India”, 6. ------(2004),”An Over view of Mihir Kumar pal and Sebak Kumar Economic Globalisation: Its Momentum Jana(eds): Development in Developing and Consequences”, in Tisdell, Clem and Economics, Concept publishing Company Raj Kumar Sen (eds), Economic Pvt. Ltd., New Delhi. globalisation, Social conflicts, labour and 12. ------(2012b),” the Negative Environmental Issues, Edward Impacts of India’s Economic Reforms”, Publishing, UK and USA. R.K. Sen (ed), Essays in Honour of B.N. Ghosh 7. ------(2005), “Indian Economy , Wisdom publications, U.K. and Current Globalisation”, C. 13. World Bank (1990, 2000/01, Tisdell(ed): Globalisation and Indian 2010), World Development Reports, Economic policies, Vol-2, Serial Washington. Publications, New Delhi. 8. ------(2006), “ WTO and the south : the past present and the Future”, B.N. Ghosh and H. M. Guven (eds): Globalisation and the third third world:

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Emerging trends in consumption pattern - A study in Warangal rural area

Edunuri Venkateshwarlu Research Scholar, Department of Economics, Kakatiya University, Warangal, T.S

Abstract: Globaliasation, liberalization and privatization have transformed the Indian Economy into a vibrant, rapidly growing consumer market. The rural markets, which were earlier ignored by most of the big international market players, are now being seen as a land of great business opportunity. As the disposable income of the masses is growing, more and more corporate house are entering into the rural markets with their new goods and products leaning to Consumption pattern of the rural households depends on many factors like assets, level of change in consumption patterns in rural area education, occupation and demographic characteristics beside income. Using the MMRP (modified mixed reference period) method of measurement of MPCE (monthly per capita consumer Expenditure), average MPCE in 2009-10 was estimated as Rs.1053.64 in rural India. Introduction areas. Rural consumers, who were on Globaliasation, liberalization and the receiving end so far, are now slowly privatization have transformed the getting into position to dictate the Indian Economy into a vibrant, rapidly terms for the first time. Rural areas is growing consumer market. The rural like goldmine with lot of difficulties. areas, which were earlier ignored by most This needs to formulate a well designed of the big international market players, strategy to feel the pulse of the rural are now being seen as a land of great consumers and to tackle the mystic business opportunity.Business rural areas. As the disposable income of organizations have been embarrassing the masses is growing, more and more number of new trends in modern corporate house are entering into the marketing such as E-marketing, Mobile rural areas with their new goods and marketing, Digital marketing, Green products leaning to Consumption marketing, Corporate Retailing and so pattern of the rural households depends on. However, the very important trend on many factors like assets, level of happened in India is the tremendous change in consumption patterns in rural growth in rural areasing. Indian Rural area education, occupation and economy emerging as biggest demographic characteristics beside income contributor to economic growth of India Many experts’ defined rural areas too it is estimated that it will be around narrowly confined only to geographic 45% of GDP by 2020. and demographic characteristics and The rural economy has provided a ignored the socio-cultural and cushion to the Indian economy. Indian behavioral part of rural areas. The economy is able to sustain inspite of all marketers must understand, rural areas the crisis happened in other parts of the means rural consumers’ mindset, world is because of the backup of rural whether they buy from rural outlets or urban shops, whether they buy low end www.ijar.org.in 36 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] products or high end products, whether areas is almost twice as large as the they live in village or in town, rural entire market of the USA or that of the consumers have unique characteristics USSR. as their urban counterparts. Some other experts opined that rural areasing is  Agriculture is main source of income. agri marketing, which involves marketing of agri inputs and outputs.  The income is seasonal in nature. It is However, rural areasing involves fluctuating also as it depends on crop movement of goods and services from production. urban to rural and rural to urban markets. Rural areasing covers not  Though large, the rural areas is only agri marketing but also marketing geographically scattered. of all goods and services which satisfy the rural consumers and improve their  It shows linguistic, religious and cultural standard of living. Many companies go diversities and economic disparities. to rural areas, still to make money, not to guide or help or develop rural  The market is undeveloped, as the people consumers. The rural areasers must who constitute it still lack adequate think rural for long- term success purchasing power. instead of short-term profit.  It is largely agricultural oriented, with Nature and characteristics of rural poor standard of living, low-per capital areas income, and socio-cultural backwardness.

There goes a saying that the proof of the  It exhibits sharper and varied regional pudding lies in the eating. So also the preferences with distinct predilections, proof of all production lies in habit patterns and behavioral consumption/marketing. With the rapid characteristics. pace of technological improvement and increase in peoples buying capacity, more  Rural areasing process is both a catalyst and better goods and services now are in as well as an outcome of the general continuous demand. The liberalization rural development process. Initiation and and globalization of the Indian economy management of social and economic have given an added advantage to change in the rural sector is the core of sophisticated production, proliferation the rural areasing process. It becomes in and mass distribution of goods and this process both benefactor and services. Taking these into consideration, beneficiary. the question may arise whether Importance of Rural Retail Markets marketers should concentrate their activities in urban India consisting of metres, district headquarters and large The Indian retail market has a deep industrial townships only, or extend rural character with a total rural their activities to rural India. Rural India population of 50.2 crores representing is the real India. The bulk of India's about 80% of the total population. This population lives in villages. In terms of population is widely scattered among the number of people, the Indian rural 5.76 lakh villages. Of these villages, 3.18 www.ijar.org.in 37 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] lakhs have a population over 5,000. In As per NSS report 2011 the MMRP terms of population, Indian rural areas is (modified mixed reference period) method almost twice as large as the entire of MPCE measurement, food was market of the U.S.A. or the erstwhile estimated to account for about 57% of the U.S.S.R. Rural retail markets offer a very value of the average expenditure. This promising future for the marketing of included 14% for cereals and substitutes, consumer goods. The future market for a little less than 8% for milk products, any consumer goods manufacturers in and 8% on vegetables, among non-food the country is in the rural areas. In the item categories, fuel expenses for a little words of J.R.D. Tata, "if only 10% of over 5%,conveyance and education for rural society becomes regular buyers of about 3 ½ % each Bother consumer industrial products, the consumer goods services for 4%, and consumer durables for industry will have 5 crores of new 3 ½ %. customers added to its present market. Marketing focus to Rural India Rural areas have a very large market potential as worked out by the Market conditions: Today marketers Thompson Rural areas Index. Uttar look at rural areas by compulsion and Pradesh with its largest geographical by choice. It is compulsory because area and also rural base has got the urban markets almost reached largest rural areas potential of 15.46% saturation point and there is no other followed by Madhya Pradesh and go. It is also a choice because they are Maharashtra with 9.43% and 9.26% attractive and potential. Marketers respectively. Andhra Pradesh occupies start moving into the rural areas and fourth position with 8.49% rural areas find that there is a big fortune at the potential of which Telangana region Bottom of the Pyramid. constitutes a major proportion. Competition: Competition is becoming tough in urban markets compelling The marketing environment governing many firms to incur heavy costs in the rural areas has been undergoing vast promotional expenditure. Most of the changes in the last few decades. It was companies spending heavily on observed that rural areas in India started promotion which will become burden on showing its potential from 1960s and the existing consumers. Marketers find rural '90s are going to see the full blossoming areas are more attractive where there is of the rural areas of India. Rural less competition. prosperity and the discretionary income with the rural consumers is directly tied Awareness Level: The awareness up with agriculture prosperity. Due to level of urban consumers is high hence improved irrigation facilities and they always look for new product or new methods of cultivation, incomes of rural features in existing product. This people increased considerably, in recent process needs a huge investment which years. It is clear from the fact that half of will have a negative impact on the total bank deposits are now coming profitability. Thus, perhaps for easy from the rural parts of the country, in reach the urban markets have become the form of small saving. However, there extremely difficult. Since the awareness are wider variations in the incomes of level of rural consumers is low they rural consumers. www.ijar.org.in 38 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] easily accept existing products. specific factors while making their purchase decisions for durables. 4. Interdependency between urban and rural areas: Urban markets invariably Methodology: depend on rural areas for agri produces such as food grains, fruits and The study is based on both primary data vegetables, milk and meat, agri based and secondary data. The secondary data raw materials for sugar, cotton used to supplement the findings are industries and so on. Similarly rural drawn from the primary data. The areas depend on urban products such as primary source of data is consumers who agri inputs and other goods and are using the selected products in rural services. Today this dependency has areas. The secondary data will be been increasing due to change in life collected from the reports, magazines, style of rural consumers. surveys reports and the records of the different organizations. The schedules Review of Literature: Lokhande in for rural areas to collect data regarding his research work titled “Rural areasing their demographic, socio-cultural – a study of Consumer Behavioural background, their consumption patterns, Trends” attempted to probe into the income levels, buying motives, their buying habits, brand loyalty and preferences, buying behavior, levels of behavioral changes of rural consumers. satisfaction etc. The study observed that the income is one of the major influencing factors on Objectives of Study: the consumption habits of consumers. In addition, caste, religion, education, 1. To ascertain the direction of the occupation and gender are influencing present consumption patterns. factors in rural areas. Further, affordability is influencing factor on 2. To determine the variations in consumption pattern of rural consumers. the pattern of consumption of various It was suggested that the distribution commodity group utilized in rural areas. channel should be made effective and efficient in rural areas so that none is 3. To delineate the effect of changes deficient of necessary goods. Consumer in the macro sphere of the economy on awareness must be created by way of rural consumption pattern. imparting consumer education. Study area: Telangana is a backward B.B.S.Parihar, Sanjay Yadav and and more rural in character, in terms of Irfan Siddiqui. It was found that there the size of the rural population, agrarian is a significant difference between the economy, small size of villages, and low buying behaviour of rural and urban density of population, low literacy rate, consumers with regard to their low per capita income and consequent preference for technology, style, and lower standard of living of the people. brand image, price and after –sales Warangal District has been selected for service. They found that urban and rural the purpose of study, as it is one of the areas significantly differ from each other backward districts, in terms of in considering general and product- industrialization, rural ratio, and www.ijar.org.in 39 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] number of retail outlets, low literacy rate formations and contains minerals of and lower standards of living of rural economic importance. The principal masses. In the entire district, Warangal formations are classified in to two and other two towns are the only divisions i.e., Archeqan puranas and developed urban agglomerates, and Gondwans. The soils of the District remaining areas are of tribal or semi comprise of sandy Loam’s with parches urban therefore, Warangal District is of shallow Black cotton soils, and at chosen for the purpose of the study to places even medium and deep Black represent the Telangana. cotton soil. As the District is generally tends to be dry Warangal and Hanamkonda as legend goes is linked with the dynasties Some Facts about Rural areas of great “Vishnukundins” and even prior to it was the Buddhist and pre - Buddhist Rural India consumes 45% of all soft period of Indian history. During Eight drinks, 50% of sales of motorcycles, Century, A.D., Warangal with an old TVs, cigarettes, detergents, fans, blades, name “Orugallu” has served as capital and a lot others. 70% of new city of Yadava King of Tuluva Anther’s subscribers for telecommunication, 55% from the middle of the 12th century up to of new polices for LIC, 60% of India's two hundred years. The Kakatiya or annual consumption of gold and jewelry Ganapathi Deva making Warangal as is from rural and semi-urban areas. capital city rules this area. Rani One of the key trends in the rural Rudramadevi and Prathaparudra have areas is people changing very quickly occupied proud full position in the from cable to satellite TV. 50% of DTH history. Thousand pillars Temple, connections are from rural areas. Bhadrakali Temple, Ramappa Temple, Around 75% of the rural people are Pakal sanctuary and Fort Warangal are aware of insurance but less than 20% the masterpieces of Kakatiya Sculpture rural house holds owned a policy. Less and architecture. Latter, after the fall of than 10% of rural households own a Bahamani kingdom Warangal fell to the two-wheeler. Telecommunication “Qtub Shahis of Golkonda” and services covered only 20% of rural thereafter it has came under the sway of areas. Be it automobile, telecom, Nizam’s dominions. insurance, retail, real estate or banking, the future drivers of growth are rural. “The District lies between the No marketer can afford to ignore the Latitude of 17 – 19’ and 18 – 36’ North possibilities of rural India. and Longitudes of 78 – 49’ and 80 – 43’ east and is above mid sea level by 870 ft. Emerging Trends in consumption 1700 ft. It is bounded on the North side pattern: by Karimnagar District, on the West side by Medak District, on the south side by The consumption pattern and life style Nalgonda District and by Khammam among rural consumers is changing due District, on East and Southeast. The to exposure to media. Media particularly Geographical area of the District is TV has been a great leveler. Even in 12,846 Sq. Kms. The District possessed small villages, people who have seen the interesting features of geographical urban lifestyle on television seem to www.ijar.org.in 40 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] want similar goods and services. On market annually. Food categories are the consumption front, 33% of rural currently driving the bulk of the consumers are eating biscuits and additional USD$ 90 billion into the bread for breakfast. Instant noodle marketplace by 2025. sales are double in rural India Increased purchasing power: compared to urban. Seemingly ‘urbane’ brands in categories like deodorant and Rural purchasing power has grown fabric softener are growing much faster faster than urban in the recent years. in rural India than urban and 17% of Rural Indian economy is highly rural buyers of hair dye now use colors supported by increasing disposable other than black to indulge in the income, Government initiatives and trend of externalized beauty that is schemes and favorable demographics. As picking up fast in rural areas. a result, the rural segment of the Indian Companies have realized this and are economy is growing at a pace of 8-10% going all out to tap this latent demand. per annum. Government spending in Increased level of education and rural India has tripled over the last employability of rural youth: four years and is now translating into higher consumer spending. Therefore, rural consumers are consuming more Villagers realized their children premium and convenience oriented education is the first priority. Most of categories that are typical of their the rural youth especially teenagers are urban counterparts. "Policy measures well aware of products due to their like the waiver of agricultural loans school education and media exposure. around US$ 13.9 billion and the Significant progress on literacy levels – National Rural Employment Guarantee 90% of the villages have a primary Scheme, which guarantees 100 days of school within a 1 km walk. Private employment to one member of every school enrolment in rural India has rural household (NREGS), the Bharat enhanced by 5.5% points over past six Nirman program with an outlay of US$ years. The literacy rate has also gone up 34.84 billion for improving rural by 68.91% in rural India. This enhanced infrastructure etc helped the rural the employability of rural youth they economy. are not sitting idle in villages they are motivated to go to nearby towns to Migration of Rural youth: Rural youth find the jobs. come to cities in search of better jobs. When they travel back home, they carry Huge in Size: Indian rural areas is with them stories of urban lifestyles. huge in size because rural population Awareness is thus created in the accounts for almost 70% of Indian potential markets. Increased contact of population as the recent Census 2011, rural people with their urban 833 million live in rural India, 33% of counterparts due to development of rural population includes youth, number transport and wide communication of households increased from 25 to 33 network has influence on rural crore. The rural areas is currently worth consumers’ life style. Transportation and approximately USD$ 10 billion in telecommunication tools are seen as consumer spending in the FMCG status symbol for the rural youth. www.ijar.org.in 41 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Challenges and Strategies i n Rural agencies and the client are more areas relevant in rural areas.

Delivering to the rural areas is a real Selection of sales force: The salesman challenge to many marketers. In fact, in rural areas should be selected from the whole dynamics of rural areas are so the educated unemployed villagers, unique that one has to look at beyond trained well and appointed as salesmen. traditional marketing mix with The town-to-villages shuttling salesmen advanced mix containing the 4A’s are to be replaced by stationary instead of the traditional 4P’s of salesman in villages. marketing: Acceptability – develop what the consumer wants, Affordability – ‘Foot in the door’ strategy is the most Make an affordable product, popular marketing approach used for Availability – product made available at selling products like cell phone and villages and Awareness - Don’t promote motorcycle to rural segment. the brand, demonstrate the product. Most of the marketers look at rural 'Bundling of inputs' denote a marketing areas as an extension of existing urban strategy, in which several related items market hence they simply dump their are sold to the target client, including existing product which is outdated in arrangements of credit, after-sale urban market into rural areas. Hence service, and extension Services such as marketers fail to penetrate into rural providing the required know-how and areas in big way. Though rural so on. consumers attracted towards urban life styles their dynamics are differ from Developmental marketing refer to urban consumers. Similarly rural taking up marketing programmes areasing strategies are also significantly keeping the development objective in different from the marketing strategies mind and using various managerial and aimed at an urban consumer. other inputs of marketing to achieve these objectives. Communicating with heterogeneous Unique Selling Propositions (USP) rural areas: Every 20 kms of distance involves presenting a theme with the India is different. Different in terms of product to attract the client to buy that Language, lifestyle, culture, food habits, particular product, the classic example, dressing and needs and wants and so “Thanda matlab Coco cola”. In urban on. Therefore, communication strategies India, it is a question of reach. But in must be more specific to the language rural India, it is about reach and and local culture. Mass media may serve preach". "You have to tell them what a the purpose of achieving awareness and cold drink is, how it is opened, how [to interest but for creating conviction the drink it] in a macho manner by holding consumer must have face-to-face your head up – you cannot take it for communication medium. Client and granted." And there is no much Location specific promotion strategy fluctuation in the temperature. based on the location and the client and Conclusion: co-operative promotion strategy, India's rural areas could participation between the marketing have been stronger than the present www.ijar.org.in 42 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] position, if Indian policymakers have 4. http://www.thehindubusinessline.co made adequate infrastructure for rural m/features/brandline/articl India. Unless the proper infrastructure e1543730.ece developed in rural areas with sufficient 5. http://ingene.blogspot.com/2011/03/t power, water, communication etc at a ata-nano-story-downfall-saga.html nominal cost, this demand may not be 6. http://www.ibef.org/artdispview.aspx sustainable for long. The corporate ?in=78&art_id=31134&cat_id=938 people should think beyond their &page=2 products and initiate innovative 7. NTT DoCoMo's Tata Deal: Why corporate efforts to replace government Global Telecom Firms Want to Dial intervention for providing basic facilities, India. for example ITC’s e-Choupals, to 8. http://online.wsj.com/article/SB1251 capture the rural areas and stay long 99080965883577.html over there. Corporate sector needs to 9. Census of India, 2011. realize that to be successful in the rural 10. Navin Mathur, Rural Marketing, areas, they must go in with clear long- Indian Journal of Marketing, Vol. 4, term strategy. Marketer must have 1976, p. 3. willingness to invest in rural areas with 11. Gandhi, J.C., Marketing A equal importance as they give urban Managerial Introduction, Op. Cit., market. Short- term promotional efforts pp.74-75. may not deliver the desired results in 12. Ramaswamy, V.S., et al., Op.Cit., p. the rural areas. 474. 13. Ibid. p. 58. References: 14. Lokhande, Research Work titled “Rural areasing – A study of 1. Pradeep Kashyap, Siddhartha Raut, Consumer Behavioural Trends” The Rural areasing, 2008, biztantra, 15. B B S Parihar, Sanjay Yadav and New Delhi. Irfan siddiqui, 2007 "Urban and 2. S. Dhinesh Babu, A. Peer Mohamed Rural Consumer Behaviour: A Ariff, M. Ravichandran, Emerging comparative study with special Trends in Rural areasing. reference .to Consumer Durables", 3. http://blog.nielsen.com/nielsenwire/c The ICFAI Journal of Consumer onsumer/india%E2%80 Behaviour, Vol. II No.1, March %99s-rural-fmcg-market-to-grow-to- 100-billion-by-2025/

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Impact of Agricultural Marketing and Price Policies on Telangana Economy – A Case Study

Endrakanti Venkatesh Research Scholar, Dept. of Economics, Osmania University, Hyderabad

Abstract Agricultural price policy is a measure that facilitates and motivates farmers to go for production – oriented investment and technology, and to safeguard the interests of consumers by making agricultural supplies available at reasonable prices. Agricultural policy in general was primarily introduced to ensure affordable food prices for consumers’ by providing food grains through Public Distribution System (PDS) and prompting of the new technology for increasing yield by providing a price support mechanism through Minimum Support Price (MSP) system. The emergence of regulated markets has helped in reducing the market obstacles of producers/sellers at the wholesale assembling level. But the rural periodic markets and the tribal markets, remained out of its developmental range or scope. Also, in recent years, agricultural sector which is a backbone of India, observed a decelerated growth rate. This paper examines the effectiveness of agricultural price policy in enabling farmers get sufficient profits to promote investment, technology and productivity and thereby to the food security of the country. This paper analyses the effects of Agricultural marketing and price policy on production, income, cropping pattern among sample beneficiaries in selected district i.e., Wanaparthy of Telangana state. The study covers about 200 farmers in four villages (Sanginenipally, Kalwarla, Kethepalli, Vengalaipalli) from two mandals (i.e., Veepanagandla and Pangal) of above district. Keywords: Agricultural Price Policy, Agricultural Markets, Agricultural Product, Grading and Standardization Introduction development and progress of Indian society, and proper policy for agriculture Agriculture is described as the backbone sector is crucial to improve living of Indian economy, mainly because of standards and to improve welfare of three reasons. One, agriculture masses. constitutes largest share of country's national income, more than half of The emergence of agricultural Price India’s workforce is employed in its Policy in India was in the backdrop of agriculture sector and growth of other food scarcity and price fluctuations sectors and overall economy depends on provoked by drought, floods and performance of agriculture to a international prices for exports and considerable extent. Besides, agriculture imports. This policy in general was is a source of livelihood and food security directed towards ensuring reasonable for large majority of vast population of (affordable to consumers’) food prices for India. Agriculture has special consumers’ by providing food grains significance for low income, poor and through Public Distribution System vulnerable sections of rural society and is (PDS) and inducing adoption of the new at the core of socio economic technology for increasing yield by www.ijar.org.in 44 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] providing a price support mechanism both farmers and consumers. The through Minimum Support Price (MSP) government funding of farmers is still at system. Currently, food security system nascent stage and most of the small and price policy basically consists of farmers still depend on the local three instruments: procurement moneylenders who are leeches and prices/minimum support prices, buffer charge high rate of interest. There are stocks and public distribution system too many vultures that eat away the (PDS). Agricultural price policy is one of benefits that the farmers are supposed to the important instruments in achieving get. Although we say that technology food security by improving production, have improved but it has not gone to the employment and incomes of the farmers. rural levels as it is confined to urban There is a need to provide remunerative areas alone. There are several loopholes prices for farmers in order to maintain in the present legislation and there is no food security and increase incomes of organized and regulated marketing farmers. system for marketing the agricultural produce. The farmers have to face so Agricultural Marketing in India many hardships and have to overcome India’s legacy of extensive government several hurdles to get fair and just price involvement in agricultural marketing for their sweat. Case Study of Wanaparthy District has created restrictions in internal and external trade, resulting in cumbersome of Telangana and high-cost marketing and transport During the 1960s and 1970’s, India’s options for agricultural commodities. agricultural policy was framed with the Even so, private sector investment in objective of attaining food security and marketing, value chains and agro- price stability. These policies were based processing is growing, but much slower on controls on marketing, pricing, than potential. While some restrictions storage, transport, and quantitative are being lifted, considerably more needs restrictions on trade. Public investment to be done to enable diversification and in the agriculture sector, spurred by minimize consumer prices. Improving “The Green Revolution” of the 1960s, access to rural finance for farmers is and agriculture grew by over 4 percent another need as it remains difficult for per annum in the 1980s. This rate, farmers to get credit. Moreover, subsidies however, was not sustainable. A on power, fertilizers and irrigation have slowdown in public investment, low yield progressively come to dominate growth, and environmental problems Government expenditures osn the sector, including declining water table led to and are now four times larger than poorer agricultural performance in the investment expenditures, crowding out 1990s. India has an Agricultural Produce top priorities such as agricultural Market Regulation Act (APMRA) in research and extension. which every regulated market has a There are several challenges involved in market committee where farmers, marketing of agricultural produce. There traders, commission agents, local bodies is limited access to the market and the state government are information, literacy level among the represented. Prices are fixed through an farmers is low, multiple channels of open auction in a transparent manner in distribution that eats away the pockets of www.ijar.org.in 45 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] front of an official of the auction The study covers about 200 farmers in committee. four villages (Sanginenipally, Kalwarala, Agricultural Marketing is covered under Kethepalli, Vengalaipalli) from two State List in Article 245 of Constitution mandals (i.e., Veepanagandla and of India. The State Agriculture Produce Pangal) of Wanaparthy district. The Marketing (Regulation and main criticism of agricultural marketing Development) Act promoted by and price policy is that they do not respective state government regulates reduce the long chain of intermediaries the agriculture marketing within the between the farmer and the consumer, state, divides the entire state into which adds to the cost of agricultural various notified areas and delegates the commodities to consumers on the one responsibility for regulating agricultural hand, and decreases returns for farmer markets in respective areas to specific on the other. U. Ramudu from APMCs. The biggest hindrance in Sanginenipally village says that there is providing a modern and suitable no proper implementation of price marketing system had been limiting policies as per the govt regulations on provisions in the State Agriculture farm produce and also no provisions of Produce Marketing (Regulation and regulated markets in the village. In case Development) Act. A state APMC Act of the village Kalwarala, though there is divides the entire state into various a facility of Regulated Markets there is notified areas to the specific APMCs. no effective price policy because of the Essentially, the state APMC Act treats involvement of middlemen and mahila agricultural marketing to be a localized sangham says Veeranna from subject confined to a specific notified Sanginenipally. While the farm produce area and, therefore, it endeavors to of the crops is very low, there is no create a mechanism to regulate sale of provision of cold storages to store even agricultural produce grown in that area the less amount of production for future. by the farmers to the traders located The middlemen and Mahila sangham within such notified area. In fact, it goes people buy the farm produce from the to the extent of prohibiting the end-users farmers for a very low price contradicting and processors located elsewhere from minimum support price approved by the buying from the farmers directly in the govt and sell in the markets with higher absence of license from respective marginal rates. As a result farmers face a Agricultural Produce Market Committee huge loss when the middlemen and (APMC). According to official sources, Mahila sangham are making huge there are 180 AMCs and more than 300 profits. The same situation can be sub-markets operating in Telangana. witnessed in other parts of the district Agricultural Marketing in and of course in the entire state and Wanaparthy District compared to nation. state 1. Measures to improve the State District agricultural marketing:- Agricultural 180 4 Market Committees Following measures can be adopted to improve the agricultural marketing: Rythu Bazaars 36 0 Improved Transport Facilities:-  www.ijar.org.in 46 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

The government should increase the government should also pay special road facilities and rural areas should attention to this side. be linked with the markets. It will Grading of Product: enable the farmer to sell his product  There are in the market directly in the hands of various agencies which are busy in consumers. grading agricultural product. There  Increase in the Credit is a need to expand these Facilities:- organizations for effective of marketing system, The government should increase the Marketing Research: credit facilities to the small farmers.  The No doubt all the commercial banks government should allocate a are providing this facility to the sufficient amount on marketing farmers but still it is not sufficient. research to make the agricultural  Increase in Storage Facility: The marketing more effective. government should provide loan to 2. Conclusion the framer for storage facilities. The government should also construct Direct marketing of the agricultural the stores to keep the stocks of produce is the need of the hour. Efforts various goods. may be made to provide facilities for  Market Reforms: The government lifting the entire stock that farmers are should improve the market system in willing to sell with incentive price. There the country. Market committee should be provision for storing the stocks should be reorganized. Markets such as godowns and warehouses. It inspectors should check the prices of helps the farmers to hold the stocks till agricultural products. The strict laws the prices are stabilized. Usually should be introduced. immediately just after the harvest the prices would be low and if the farmers  New Markets: The government are patient in holding the same for some should build the new markets near time it would fetch better prices. The the producing centers. It will enable brokers play the games during the the farmer to get proper reward. trading of the agricultural stocks which the farmers do not know and realize  Cold Storage:- This is an important because of improper information about part of organized markets. These are the market prices. The brokers without very useful for the perishable goods any investment and with their like fruits and vegetable. The negotiation skills transfer stocks by government should expand the scope buying at low prices and selling at higher of cold storage. prices to the other end. The farmers need to be educated in this regard. There Market Information:  Market should be all-round rationalization and demand and supply condition can be standardization of the prices through provided to the framers through legislative means. Presently there is vast radio, T.V and newspaper. The gap between the marketing strategies of agricultural produce in India and abroad

www.ijar.org.in 47 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] and the same needs to be bridge. Remove  Dhankar, G. H., 2003, Development the various malpractices prevalent in the of Internet Based Agricultural present system. There is need to set up Marketing System in India, marketing committees which has the Agricultural Marketing,45(4):7-16. - representation of growers, merchants, Hall, Inc., New Jersey. p.139. local bodies, traders and nominees from  Nickels. William G., 1978, Marketing the govt. There should be collective and Principles –A Broadened concept of integrative efforts and energies from all Marketing, Prentice quarters for ensuring just and price for farmers. References

 Trade Liberalization, Market Reforms and Competitiveness of Indian Dairy Sector, April 2003 by Vijay Paul Sharma and Ashok Gulati.  Technological Change and Price Effects in Agriculture: Conceptual and Comparative Perspective, April 2003 by Eleni Gabre-Madhin, Christopher B. Barrett, and Paul Dorosh.  Increasing Returns and Market Efficiency in Agriculture Trade, April 2003 by Marcel Fafchamps, Eleni Gabre-Madhin and Bart Minten.  Post-Uruguay Round Price Linkage between Developed and Developing Countries: The Case of Rice and Wheat Markets, November 2004 by Navin Yavapolkul, Munisamy Gopinath and Ashok Gulati.  Agricultural Diversification in India and Role of Urbanization, November 2004 by P. Parthasarathy Rao, P.S. Birthal, P.K. Joshi and D. Kar.  Grain Marketing Parastatals in Asia: Why Do They Have to Change Now? January 2005, by Shahidur Rashid, Ralph Cummings Jr., and Ashok Gulati.  Exchange Rate Misalignment and Its Effects on Agricultural Producer Support Estimates: Empirical Evidence from India and China, February 2005, by Fuzhi Cheng and David Orden. www.ijar.org.in 48 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Education and Health problems of women in Tribal Areas- Study in Warangal District

Dr. G. Kavitha, Department of Economics, Kakatiya University, Warangal, Telangana

Abstract: Education is one of the most important social indicators which are directly linked with economic development indirectly with poverty, population growth, health, crime rate etc. Imparting education on an organized basis dates back to the days of “Gurukul”in India. Since then the India education system has flourished and developed with the growing needs of the economy. The education in India statistics are however in a sad state showing a below average literacy rate. The education ministry in India formulates education policy in India and also undertakes education programs designed specially for kids, for women, for the people in prisons and other special project for social development of India. Education in India until 1976 was the responsibility of the state governments; it was then made a joint responsibility of both centre and state. The centre is represented by the education ministry a subsidiary of the ministry of human resource development India.

Introduction in different degrees are applicable to the Women in a tribal society play a vital disempowerment of different socio- their social, cultural, economic and economic groups of women who are religious ways of life and are considered socially heterogeneous groups like white as an economic asset in their society. But women versus black women, educated they are still lagging far behind in the and uneducated women, High caste different walks of life education, women and low caste women. employment, good health and economic The tribal women being economically empowerment etc. Though they are poor and socially back –ward live at a low industrious, they have limited control level of the quality life. Thus the tribal over resources and economic activities. women often face the problems of food Therefore, there is a need for economic insecurity, mal nutrition, lack of access empowerment of tribal women in order to health care services and education on to overcome inequality, discrimination the victim of domestic violence and rape. and exploitation and to achieve their all Unlike the well organized modern round development in the society. communities, the tribal communities and There are a good number of studies, tribal women lag far behind in social explaining the causes and consequences networking. This is the nature and of women disempowerment. Such studies dimension of socio-economic are related to a general enquiry of disempowerment problem among the women exploitation and dependency. tribal women in India. Importance of Women Education in These studies have in deified lack of education, absence and segregation and India: male control over resources and Women education in India plays a very reproductive rights as responsible for important role in the overall women disempowerment. These factors development of the country. It not only www.ijar.org.in 49 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] helps in the development of half of the percent and the variation is around 10 human resources, but in improving the percent in between general and ST quality of life at home and outside. categories. The ST literacy rate of Educated women not only tend to Andhra Pradesh is 49.20 percent and it is promote education of their girl children, in the tenth rank among the major tribal but also can provide better guidance to states in India the first and second places all their children. Moreover educated are West Bengal and Jharkhand are 57.9 women can also help in the reduction of with 57.1 percent respectively. As per infant mortality rate and growth of the the School Education Statistics 2010 – population. 2011, the gross enrollment for general Education is the basic requirement of category boys are 115.40, 104.90, 97.60, human development. For this, the 88.0, 87.70, 69.0, 55.50 and 42.20 of I-V, I government is making lot of efforts to – VIII, I – X, I – XII, V – VIII, IX – X, IX – improve the educational levels at XII, and XI – XII Classes respectively. different classes at people by providing The enrollment of ST children 11.0 at scholarship, food dresses and books primary level, 8.7 percent in Upper etc,But uni-form approach will not help Primary School and in Secondary in improve the quality of education and Education is 6.4 percent as per 2010 – improving the educational standards of 2011 M/HRD. The dropouts are also different classes of people, especially observed as per the source in I - V Tribes. Tribes are among the classes 35.60 percent as against 27.0 economically and socially most backward percent of national average the gap is 8.6 people in the country. They constitute percent. It is 55.0 and 40.6 of ST and nearly 8 percent of the total population. National level for the I – VIII classes and Lot of money was spend for providing in overall 1 to 10th class dropouts are 70.9 education to these people by the for ST and 49.3 for national average and government. But the success is not to the the overall gap is noted as 21.60 percent. expected level. With the rapid economic change, the demands and educational needs are also changing Health care in India: Education Status of Schedule Health in India is a state of government tribes: responsibility with the national health Education forms an important polity laying down the necessary health component in the overall development of policy in India. The central council of individuals, enabling them to greater health and welfare formulates the awareness, better comprehension of their various health care projects and health social, political and cultural environment department reform policies. The and also facilitating the improvement of administration of health industry in their socio-economic conditions. These India as well as the technical needs of the hold true in the case of the Scheduled health sector is the responsibility of the Tribes in India. As per the 66th round ministry of the health and welfare India. NSS report no. 543 in 2009 – 2010, the Health care in India has many forms. Literacy Rate is 72.80, male literacy is These are the ayurvedic medicine 81.10 and female is 64.0 percent, while practice, Unani or Galenic Herbal care, the ST literacy rate is 63.1 percent and Homeopathy, Allopathy, Yoga, and many the male is 71.7 and female is 54.4 more. Each different healthcare form has www.ijar.org.in 50 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] its own treatment system and practice In the India context, the increased patterns. The medical practicing in India disease burden on the poor along with needs a proper Licensing from the health rapidly growing healthcare costs has ministry. The health care services in been the subject of debate for sometime India are mainly the responsibility of the now. Services in government healthcare health ministry and also the private institutions have declined over the past companies in the health industry in India two decades at the primary and collectively. Provision for adequate secondary level, leaving the sick-poor medical facilities for all including enough with no option but seek private hospitals and other healthcare healthcare services. institutions to cater to the healthcare needs of the people, medicines and drugs Healthcare for poor people in supply, medical equipments and other Telangana: medical products and services required in Rural population of state , majority of the health department. The ministry of whom are farmers, are not having access health and family welfare India has set to advanced medical treatments and are up many state run hospitals that provide silent sufferers of ill-health. This is true subsidized medical facilities to all. in case of diseases reacted to heart, Besides these health ministry run health kidney, brain, cancer and injuries due to institutions, many private companies domestic accidents and burns. While the have also set up big hospitals and government is in the process of specialty clinics that provide health care adequately strengthening the health services. The specialty healthcare institutions for basic healthcare, lack of institutions include heart institutions, specialist doctors and equipment for cancer hospitals, nursing homes, and treatment of serious diseases has created many others. Today the health industry a wide gap between the disease load and in India is a flouring one with many the capacity of the Government hospitals foreign health care companies extending to serve the poor. These facilities though their health services in India and available in corporate sector are catering providing quality healthcare services to mainly to the affordable sections of people in India. Considerable society and are beyond the reach of poor achievements have been made over the families living in villages. Because of this last six decades in our efforts to improve gap poor patients are constrained to go to health standard, such as life expectancy, private hospitals for treatment and in child mortality etc.Nevertheless the process incur huge debts leading to problems abound. Malnutrition affects a sale of properties and assets or are, large proportion of children. An sometimes, left eventually to die. unacceptably high proportion of the population continues to suffer from new Rajiv Arogyasri Health care diseases that are emerging apart from program in Telangana; existing ones. The strong link between Rajiv Arogyasri, a community health poverty and ill health needs to be insurance scheme introduced by the recognized. The onset of a long and government of Andhra Pradesh on pilot expensive illness can drive the non-poor basis in 2007 and implemented in 2008 is into poverty. being hailed by many experts as a model to be emulated- the scheme covers 6.55 www.ijar.org.in 51 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] core people belonging to 183 lakh below study is a modern attempt to discuss the the poverty line (BPL) families. various aspects of educational facilities The Rajiv Aarogyasri community health and its utilization in the tribal areas with insurance scheme was established with a specific objectives. the aim of breaking a vicious cycle of ill health, poverty, indebtedness and Objectives of the study: bankruptcy among the families living 1. To study the socio- economic condition below the poverty line in AP in the year of the health and education. 2007.The purpose of the scheme was to 2. To assess the status of the educational improve access of BPL families to of facilities in the tribal areas. treatment of identified medical and 3. To identify the problems of the tribal surgical conditions through a network of to avail educational facilities. health care provides 4. To find out of the access of health care The state provides better and advanced services to tribal areas. healthcare facilities with a presence of 5. To suggest measures to improve the super specialty Hospitals. Hyderabad, health care services among tribals. the capital of telangana, has been recognized as the Health capital of Methodology:- country. In order to assess the above objectives a study has been conducted in Two sample In this perspective the paper is a modest villages in Gudur mandal of Warangal attempt to examine the aspects such as district which is backward and remote income and health expenditure of tribal tribal mandal in the district information households,mobidity, fertility and family gathered through interview schedule planning, access to health care services observations from 100 sample and problems faced by them with respect respondents from each sample village 50 to health care services in tribal areas respondents these two selected villages through education is to be considered as the data analyzed in the following tables a better way to improve the living condition of women .Hence the present

Literacy rate accounting to 2011 census Sl .no Literacy Male Female total rate 1 India 82.14 65.46 74.04 2 Telangana 75.00 57.09 66.56

Table-1: Distribution Particulars of the Respondents Sl. Name of the Sample Percentage No village Respondents 1 Govindapuram 50 50.00 2 Laxmipuram 50 50.00 Total 100 100.00 Source: Field Study

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In the a above table Distribution The sample respondents are in which Particulars of the Respondents in two villages 50 respondents. Total sample villages .Govindapurm and laxmipuram respondents are 100. Table: 2: Literacy Particulars of the Respondent Sl. Literates Illiterates Total No Name of the village 12 38 50 1 Govindapuram 64.00 98.00 50.00 . 10 40 50 2 Laxmipuram 56.00 104.00 50.00 22 78 100 Total 22.00 78.00 100.00 Source: Field Study; The literacy particulars of the backward agency area in the Warangal respondents are presented in the above district and at the same time the sample table. Out of 100, 22.00(22) per cent are respondents are also from the Tribal literates and 78.00 (78) per cent are community. In the agency area the illiterates. The literates are more in education facilities are available from Govindapuram village and the illiterates last decade but the tribal communities are high in Laxmipuram village. The are ignored the importance of education literacy rates of the respondents are in it was especially observed from two villages are far below the national Laxmipuram village not only and the state and district averages respondents but also rest of the people. because the sample villages are very Table – 3: Levels of Education of the Respondents

Primary Secondary Higher Total Illiteracy Education Sl. Name of the Education Education No village 18 20 10 2 50 1 Govindapuram 18.00 20.00 10.00 2.00 50.00 20 22 5 3 50 2 Laxmipuram 20.00 22.00 5.00 3.00 50.00 100 38 42 15 Total 5 100.00 38.00 42.00 15.00 5.00 Source: Field Study The above table reveals the levels higher educations. Out of 100, 38 (38.00) of education of the respondents in the percent are illiterates followed by study area. The total 100 respondents Primary, Secondary, and higher levels have different education levels i.e. are 42 (42.00), 15 (15.00), and 5 (5.00), illiterates Primary, Secondary, and percent respectively.

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Table – 4: Age - wise distribution Particulars of the Respondents Name of the 0 - 18 18 – 60 60 Above Total Sl.No village 3 39 8 50 Govindapuram 1 3.00 27.64 9.31 50.00 6 37 7 50 2 Laxmipuram 6.00 37.00 7.00 50.00 9 76 15 100 Total 9.00 76.00 15.00 100.00 Source: Field Study The above table gives the highest in number and as well as information of age wise distribution of percentages also in the both the sample the respondents in the study area. The villages. The other age groups like child total 100 sample respondents are and senior age are unproductive distributed in the different groups of 0- population representing the impact of 18, 18-60, and 60 above. In the overall unproductive population has become a study area, out of 100 respondents, 9 burden on the part of the earnings (9.00) percent are in 0-18 age group households as their needs and followed by 18-60 age group at 76.00.and requirements may also increase in 60 above 15.00 percent are in each age feature, the improvement of the groups are in the study areas. unproductive population adversely effect The age wise distribution trends on economic development in any are similar in the both the sample economies particularly in the emerging villages. The age group of 18 – 60 years economies like India . productive population is reported as the Table – 5: Literacy Particulars of the Respondent Households Sl. Literates Illiterates Total No Name of the village 64 98 162 1 Govindapuram 19.87 30.43 50.31 . 56 104 160 2 Laxmipuram 17.39 32.29 49.68 120 202 322 Total 37.26 62.73 100.00 Source: Field Study

The above table reveals the literacy 62.73(202) per cent in the total particulars of the respondent’s respondent population, in which households in the study area. Out of 322 32.29(104) per cent of Laxmipuram and population, 37.26(120) per cent are 98.00 (98) per cent from Govindapuram literates in which around 19.87(64) per village. The overall literacy rate is only cent are literates are from 37.00 per cent in the study area; Govindapuram village and in according to 2011 census the mandal laxmipuram village 17.39 (56) per cent. average is 35.00 per cent only. But the In the illiteracy category, it is reported as literacy rates of the sample households

www.ijar.org.in 54 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] are 37.00 per cent in study period (2012 than laxmipuram village, because of the December).In the two sample villages educational facilities available in the Govindapuram village is more literates village.

Table-6: Expenditure on health of the respondents Name of the 500 – 1000 0-500 Total Sl.No village 1000 Above 12 33 9 50 Govindapuram 1 12.00 33.00 9.00 50.00 10 29 7 50 2 Laxmipuram 10.00 29.00 7.00 50.00 22 62 16 100 Total 22.00 62.00 16.00 100.00 Source: Field Study In the above table Expenditure on health Rs.500/- and still 16.00(16) percent are at the respondents. Most of the spending about 1000/-.the healthcare respondents about 62.00(62) percent are Expenditure more spending village is spending up to rs.500-1000/-on health Govindapuram 33.00 percent and low care. About 22.00(22) percent of the expenditure spending village is respondents expenditure on health is laxmipuram.10.00 percent.

Table-7: Type of the clinic in the sample villages Name of the AREA PHCs CHC Total Sl.No village Hospitals 2 1 1 4 Govindapuram 1 (28.57) (14.28) (14.28) (57.14) 2 1 0 3 2 Laxmipuram (28.57) (14.28) (0.00) (42.85) 4 2 1 7 Total (57.14) (28.57) (14.28) ( 100.00) Source: Field Study In The above table type of the clinic in High level of the unemployment. And the sample villages total type of clinic 7 Illiterates high in the sample areas. .two villages 57.14(4) percent of the They are still facing food security, PHCs , CHC 28.57(2)percent and area housing, drinking water; some problems hospitals14.28(1)percent in the sample are facing the women in the villages. villages. in the sample villages more visit The general health ailments according to in RMPs doctors. them tare fever, blood pressure, Neuro problems fever due to consumption of The women are facing many local liquor prepared by themselves, problems such as; dysentery, chest related problems, The informal works are usually poor, gynecological problems, periodical check- unskilled and migrants. ups by pregnant women, deliveries, Ortho problems.

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In majority of cases patients are unable The tribal’s in the area women face these to explain their problems to the doctor many problems to get better health care and also not cable of understanding what services from the public sector, it is doctor’s advise, due to their illiteracy and found that only 57.14 percent of ignorance. Usually RMP of their village households visit PHC at village level and will assist the patience. 14.28 percent visit Government hospital Whenever they are sick 80 percent of the at mandal level. households initially take the medical References:- treatment on the advice of RMPs.20 1. Office records of the Warangal percent get treated in private hospital at district medical and health office. mandal head quarters. 2. Bhore committee report :Government The respondents felt that there is nexus of India report of the health survey between RMP, medical shops and and development committee, vols I II III Diagnostic centers and in few cases with IV , publication division, government of doctors also. Though they felt impatient, India new Delhi there is no alternative. 3 . Moving toward universal health Conclusion:- coverage ;Aarogyasri results for The field investigation results of the development institute of health systems, study to be observation by the study area Hyderabad. no educated more in tribal area the 4. Ellies, R.P,Monner Alam and indrani parents are no educated in the study area gupta (2000): health insurance in follow up is not useful for tribal india:prognosis and prospects , economic education .the government shall make and political weekly. provisions interact more facilities for the 5. Rao, K sujatha (1988):a healthcare tribal education the programs cannot full services in tribal areas of AP:A public fill no goals unless there is follow up perspective . EPW, VOL. 33,NO .9 midday meals proved that drop out rate 6. Gopinathreddy m:politics of pro-poor in school have come down as the children reforms in the health sector primary are getting food .tribal education health care in tribal areas of developed in the free books and uniform Visakhapatnam. and more government facilities available 7. Acharya, AA, compulsory primary in the tribal area education in AP:-A policy analysis, The social infrastructure in India PH.D theses in education, Osmania includes the education system, university, 1984 healthcare, and the management of the 8 .Bose AB, problems of education education and health services in India. development of scheduled tribes in India The basic things needed at school level (vol. 50, no 1 January – March) . for quality education are building, water, 9 Hyderabad: Government press, tribal toilets facility etc. in which still there are population of telangana census of India, significant number of schools with out vol xxI. such facility particularly in rural area.

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India’s Agrarian Crisis and Corporate –-Led Contract Farming: Socio – economic Implications for Smallholder Producers

G. Saritha & D. Sonia, Research Scholar, Dept.of Economics, Acharya Nagarjuna University, Guntur, Andhra Pradesh

Abstract: The paper discusses India’s agrarian crisis and the role of corporate-led contract farming inaddressing these crisis. A two-state Heckman model was used to explain determinants of participation in contract farming, and whether participation in contract framing affects farm income. The results indicate thatcontract farming hasa positive impact on crop productivity and farm income. The socio-economic factors that influenced participation in contract farming were education, age, farm size, access to institutional credit, source of off-farm income and membership to an organization. Factors related to the likelihood of participation incontract farming slightlydiffered fromthe factors affecting farm income. Keywords: Agrarian crisis, Smallholder producer, Corporate-led contract farming, Agricultural produce Marketing (APMC) Act, Heckman model

Introduction: environment has attracted the interest of The importance of the agricultural sector several large corporate to agriculture. in the economic development of India is Contract Farming in India clearly indicated by its contribution to There is a perception that the national gross domestic product because of marke3t liberalization, (GDP). In 2006-07, agriculture globalization , and expanding contributed 18.5 percent to GDP (at agribusiness, small farmers will find current prices), industry 26.4 per cent difficulty in participating in and services 55.1 percent (GOI, 2008). restructured markets and could become The agricultural sector is also marginalized . One of the reasons for important to the socio-economic their exclusion isweak backward (inputs development, as about 70 per cent of and services) and forward (agro- the population live in rural areas and processing and marketing) market most of them depend on agriculture. The linkages. current crisis has led to renewed focus on Contract farming can be defined agriculture and the government has as an agreement between a farmer and launched several programmes to tacke processing and/or marketing firm for the crisis. The government has initiated the production and supply of various reforms such as agricultural agricultural products under forward market sector reforms, research and agreements, frequently at development, investment, formulation predetermined prices (Charles and of integrated food laws, incentives for Shepherd, 2001). The arrangement also corporate investment in agribusiness invariably involves the purchased in sector, etc. A favorable regulatory providing a degree of production support through, for example, supply of

www.ijar.org.in 57 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] inputs and provision of technical plans but fell short of the target during advice. the ninth and tenth plans. During the The first contract farming tenth plan, agricultural GDP grew at initiative inIndia was taken by an annual rate of mere 2.1 per cent PepsiFoods Ltd. (PepsiCo) in 1989 which against the target rate of 4 per cent . set up tomato processing plant in Considering the importance of Punjab. With the liberalization of the agriculture in the Indian economy, it economy in the 90s, there has been a would be difficult to imagine India spurt in contract farming in India. meeting the targeted growth of 9 per Contract farming is practiced by cent during eleventh plan without domestic and multi-national corporations strong agricultural growth. in foodgrains, spices, oilseeds, fruits and Declining Investment andRising vegetable crops, cotton, tea, coffee, etc. Subsidies Financial institutions and banks are also One of the important reasons promoting contract farming. Different fordeceleration inagricultural growth has contract models are available to farmers been declining levels of investment in and agribusiness ranging from simple agriculture and allied sectors, buyback of produce to provision of inputs particularly public investment. The and services; single company model to share of agriculture and irrigation in consortium of companies (agri-input, plan expenditure has declined from 37.3 processing, banks, etc.) including statal percent in the tenth plan (Figure 6). The and parasternal agencies. The share of the public sector in gross capital partnership will depend on the available formation in agriculture has institutions to support production and declinedfrom 30.9 per cent in 1995-96 to product markets, commodity being 25.6 per cent in 2003-04, while the produced, resource base of produces and share of the private sector has increased capacity of agribusiness firms. from 69.1 per cent to 74.4 per cent India’s Agricultural Sector Crisis: during the same period (Sharma, 2007). This section discusses deceleration in The share of agriculture sector’s capital the agricultural sector, declining formation in GDP has declined from 1.9 investment, deteriorating institutions percent in the early 90s to about 1.2 in mainly extension agencies , and the early 2000s, which is a cause for ecological crisis in Indian agriculture. concern. However, there is an indication of reversal of this trend of Deceleration in Agricultural Sector late, with public sector investment in While India’s GDP grew at an annual agriculture reaching the highest level compound growth rate of 7.6 per cent since the early 90s at Rs.5,249 crore in during the tenth plan1 (at 1993-94 2003-04 at 1993-94 prices (GoI, 2007). constant prices), agricultural This has helped in improving theshare growthdeclined to nearly 2 percent, ofagriculture sector’scapital formation in resulting from stagnation or decline in GDP from 1.28 per cent in 2001-02 to productivity. Plan-wise trends of 1.31 per cent in 2003-04. growth of GDP and agriculture show that India’s agricultural sector has A Key reason fordeclining grown more than targeted growth publicinvestment inagriculture has been during the sixth, seventh, and eighth ever increasing agricultural subsidies. www.ijar.org.in 58 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Total agricultural subsidies growth. Therefore, public sectorneeds haveincreased at an annual compound toprovide the necessary technological, growth rate of about 12 per cent between institutional, andrural infrastructure to 1993-94 and 2002-03. Trends in food and stimulate agricultural growth. But public fertilizer subsidies duringthe 1990sand investments in agriculture have been 2000s arepresented in Figure 7. Subsidy stagnating or falling over years, while on fertilizers has increased from Rs.4389 the subsidy bill on food, fertilizer, crore in 1990-91 to about Rs. 22,452 power and irrigation has been crore in 2006-07 (at an annual ballooning. If Indian policy planners can compound growth rate of 10.6 per cent). reverse this trend, much of the problems Food subsidies havealso witnessed a ofIndian agriculture will solve significant growth during the 1990s and themselves. 2000s, rising from Rs.2450crore in 1990- 91 to Rs.24,200crore in 2006-07. Food The government isaward of the problem and agricultural subsidies are far greater of misdirected an unsustainable than public investment inagriculture and subsidies. In its approach paper to the allied sectors. In addition there has been mid-term appraisal of the tenth plan deterioration in quality of (2002-07), the Planning Commission has institutions/organizations providing indicated that the existing farm price inputs and services such as credit, seeds, support and procurement policies technology, extension, etc. combined with input subsidies on fertilizer, irrigation, etc. have led to a To boost growth rates in agriculture, sharp increase in subsidy based support Indianeeds massive investments in while public investment in agriculture agriculture, particularly public has suffered. The outcome is investment. There is ample evidence inequitable since subsidies typically to tosuggest thatreturns oninput subsidies go riche farmers in irrigated areas, aretypically lower than returns on while lack of public investment hurts investments in public goods. Investment poorer farmers and those in arid in public goods such as agricultural regions. However, agricultural subsidies research and extension, rural roads, and are a politically complex and sensitive irrigation typically produce returns two subject. The logic that the present to six times greater than spending on subsidyregime benefits better off farmers input subsides (Fan, Zhang and Zhang, disproportionately hasfailed to carry 2003; Fan, Hazell and Thorat, 1999, Fan, much political weight. It is also true Zhang and Rao, 2004). Therefore a even small and medium farmers reorientation of public spending from depend crucially on subsidized inputs input subsidies and increased such as seeds, fertilizer, irrigation, etc. investment in public goods is likely to Attacking subsidies, therefore, translates accelerate agricultural growth – politically into a direct attack on all technological research, rural farmer’s interests. infrastructure , etc. – are public goods. Because the private sectorcannot capture Declining Farm Sizeand Land gains from these investments, they will Fragmentation not invest in amounts sufficient to The agrarian structure in India ensure broad – based agricultural hasundergone significant structural www.ijar.org.in 59 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] transformation since the 70s. Recent while area under wheat has increased datashow that the share of marginal and from 11.5 per cent to 14 per cent of the smallfarmers (farmers owning<2 ha) has cropped area. However area under increased from 69.7 percent in 1970-71 to coarse cereals declined significantly from approximately 82 per cent in 2000-01 about 27 per cent in 1971-72 to 16 per (GOI, 2007). The average farm size has cent in 2001-02. Area under pulses has declined from 2.3 ha in 1970-71 to 1.69 also declined from 13.3 per cent to nearly ha in 2000-01. The average size of land 12percent. In agriculturally developed holdings in India is not only very small stateslike Punjab and Haryana, the rice- but is subject to fragmentation owing to wheat mono-cropping system in imposition of ceilings on land holding, predominant. Rice andwheat account for population increase, inheritance laws more than three-fourth of the cropped which have stipulated an equal division areain Punjab. Share or rice and wheat of property among sons, lack of off-farm in the cropped area have increased in occupations, etc. Such small holdings are recent years. The reasons for this often over manned, resulting indisguised increase are steady increase in minimum unemployment and low productivity of support prices (MSP) of wheat and rice labour. Moreover, there are several and assured procurement by the tenancy restrictions in many states, government . MSP of wheat has ranging from a complete ban of leasing in increased from Rs.280 per quintal in some states to complete freedom in some 1991-92 to Rs.1000 per quintal in 2007- states. There is growing consensus 08 and in the case of rice it has about the need to have a relook at increased from Rs.230 to Rs.850 per current tenancy legislations, which quintal (Figure 8). sometimes restrict participation of the private sector inagriculture. However, Another major problem is of stagnant under the Indian constitution, land rate of growth in agricultural administration falls under state productivity. As shown in Figure 9, governments andreforms atthe statelevel productivity of wheat, coarse cereals, are most difficult to bring about. pulses and oilseeds has decelerated during the last decade which is a cause Dominance of Rice-Wheat Cropping for concern. System and Stagnant Productivity Levels Ecological Crisis: State like Punjab and Haryana that spearheaded the Food grains continue to occupy an Green Revolution in the 60s and 70s important place inIndian agriculture. are facing a major crisis on the Commercial cropssuch asfruits and agricultural front. Because of the high vegetables, fibers, condiments and spices, yielding varieties (HYVs) of seeds etc. have reported significant increase at during the green revolution period and the national level during the last decade. assured market and price for The share of food grains in the cropped marketable surplus, rice-wheat crop area has declined from about 77 per cent rotation became dominant. HYVs in 1971-72 to about 65.6 per cent in require assured supplied of water and 2001-02. Area under rice hasremained large amounts of chemical fertilizers almost constant at about 23 per cent and pesticides, which have long-term www.ijar.org.in 60 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] ecological consequences. About 73 per ofnitrogenous fertilizersbecause of cent of irrigation in the Punjab is from higher amounts of subsidy on urea has tube wells and the remaining from led to imbalanced use of fertilizers. The government canals. With rice being N:P2O5:K2O ratio in Punjab and heavily water dependent, farmers have Haryana (agriculturally the most every reason to over exploit progressive states) is one of the most groundwater. The inevitability of distorted at 20:6:1 and 30:9:1, groundwater extraction has respectively as against the generally beenpolitically exploited too. Successive recommended 4:2:1 (FAI, 2007). In governments have even given short, intensive use of inputs mainly freeelectricity tofarmers in the state. irrigation water and chemical fertilizers Water tables havefallen atalarming rates , which was central to the green in manyplaces inthe stateduring the last revolution, has created an ecological few decades. The government’s policy of crisis in the some states. In remedial providing free electricity for agriculture action is not taken, theecological crisis and very low water charges for canal isbound to worsen. water have encouraged inefficient use of irrigation water. Intensive use of tube Contract Farming Initiatives to well irrigation has led to depletion of Address Agrarian andEcological water resources in the state. About 98 Crisis in Punjab per cent of ground water resources in Punjab have already been exploited. Concerns about the crisis in Indian Nearly 59 per cent of development agriculture and ecological problems blocks have overexploited groundwater were expressed way back in early 90s. resources, the highest rate in the Some state governments and the country, and another 12 per cent are in central government initiated reforms dark/critical zone. Injudicious use of like involvement of the corporate sector canal - irrigation water without regard in agriculture through contract farming tosoil conditions and inadequate for better access to inputs, extension attention to drainage have led to water services, and credit from agribusiness logging and salinity in many areas, companies; diversification towards high- resulting in valuable agricultural land value agriculture, and assured markets. going out of use. Contract farming is also supposed to eliminate and/or reduce market and price High and Imbalanced Use of risks, which farmers face. However, it Chemical Fertilizers all depends on the nature of contracts, legislation for regulation of contract There has been asubstantial increase in farming, enforcement, dispute fertilizer consumption in the country. resolution mechanisms, etc. Punjab is

Total NPK (N, P2O5 and K2O) one of the states to introduce contract consumption has increased from 0.7 lakh farming to promote diversification of tones in 1950-51 to 22 million tons in agriculture, risk management, and 2006-07. Per hectare consumption of address the larger issue of agrarian fertilizers, whichwas less than on Kg in crisis. The Punjab Agro Food Grains 1951-52 has increased to about 113 Kg in Corporation (a government parastatal) 2006-07 (FAI, 2007). In addition, overuse has been helping indiversifying www.ijar.org.in 61 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] agriculture through promotion of farming programme. We use this contract farming inthe state. This was information to produce a statistically facilitated by the state government’s unbiased estimate of the impact of incentives such as reduction and /or program participation on farm incomes. waiver of certain usually mandatory In the first stage aprobit model, which is charges like market fee and rural a choice model where the dependant development cess associated with variable is a binary variable (zero [0] or procurement of agricultural one [1] type of response) is used. This commodities. Pepsico was the first model is estimated using probit model company to start informal contract to evaluate the determinants of farmer’s farming with basmati rice in 1998, participation in contract farming. The followed by Hindustan Lever (HLL) in second stage model uses ordinary least 2000. At present, several companies squares (OLS) method for estimating areinvolved incontract farming in the the impact of contract farming of farm state. This paper is an attempt to income. The first state model is specified understand the socio-economic as : implications of corporate – led initiatives in agriculture. Zi = o+ 1 AGE + 2 EDUCATION + 3

Methodology Farm Size + 4 CREDIT +

5EXTENSION + 6 MEMBERSHIP + The study was conducted in three district 7 OFF-FARM INCOME + i of Punjab, Amritsar, Jalandhar and (1) Ludhiana. Initially 150 farmers were Z is equal to 1 if the respondent is a selected through stratified random i contract farmer, 0 otherwise. Equation sampling but finally 127 farmers (87 (1) is estimatedusing a bivariate probit contract farmers and 40 non-contract model. After estimating equation (1), an farmers) formed the sample since 23 inverse of the mills ratio (IMR) is households provide incomplete computed foreach observation and information on most of the parameters. Econometric Model included as an independent variable in the second stage model.

The second stage model is: This section explains determinants of participation in contract Y =βo+β AGE + β EDUCATION + β farming, and whether participation in i 1 2 3 Farm Size + β CREDIT + contract farming scheme affects farm 4 β β income. To explain these relationships, 5EXTENSION + 6 MEMBERSHIP + we have to account for unobserved β7 OFF-FARM INCOME + uij factors that may affect bothlikelihood of (2) participation and farm income. We do this by applying a two-stage Heckman Farm income is Yijis hypothesized to be model (1979) to produce statistically affected by farmer’s participation in unbiased estimatesof programme contract farming and βis are the impacts. Two equations estimate estimation parameters. We estimate the theimpacts of farmer’s characteristics on model using OLS. Based on the decisions to participate in contract theoretical framework and previous www.ijar.org.in 62 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] research, several hypotheses are The average sizeof operational holdings formulated. Household heads who are washigher (10.3 hectares) in the case of younger are hypothesized to be more contract farmers than non-contract likely to participatein contract farming. farmers (4.8 hectares). Tenancy Education is expected to have a positive isallowed inthe state, therefore, leasing effect on the likelihood of participation in of land is quite common. The average contract farming and farm income. area under lease is higher in case of the Households with more assets such as contract farmers than non-contract land are expected to be more likely to be farmers. Area under lease has increased part of contract farming initiatives. farmers; while the corresponding figures Those who have better access to for non-contract farmers are 1.4 and 2.2 institutional credit, extension services, hectares. Largely medium and large off-farm income and are members of farmers lease-in land to increase their farmers’ groups / cooperatives, etc. are operational holding to enter into contract more likely to participate in contract farming, since mostcompanies prefer farming and have higher farm income. large landholdings. Fixed rent and payment in cash are dominant practices. Results and Discussion The average cropping intensityis marginally higher in the case of contract The following discussion is focused on farmers than non-contract farmers. identifying and comparing factors that Cropping Pattern can be used to explain differences in participation in contract farming. Farmers grow a variety of crops in the Results forparticipants ofcontract study area but rice (basmati and non- farming arecompared with non- basmati) is the main crop occupying 41 participant farmers. percent of the gross cropped are during summer and wheat (34.9%) in winter, Socio-economic Characteristics accounting for over three – quarters of ofSample Households the cropped area. Area under basmati Table 1shows demographic and socio- rice has increased between 2002and economic characteristics of sample 2007, whereas, area under non-basmati households. Almost all households in the rice has declined duringthe same period. sample were male-headed with an The cropping pattern of non-contract average family size of six members farms is also dominated by rice (36 per perhousehold undercontract farming and cent) in summer and wheat (42 per cent) nine members in the case of non-contract in winter season. It is interesting to note households. Contract farming farmers that are under basmati rice is were more educated,had larger farm size, significantly higher (23 per cent) in the and were young compared to non- case of contract farmers than non- participants. Crop farming is a main contract farmers (8%). In contrast, area occupation for almost all contract and under non-basmati rice is higher (28%) non-contract farmers. Dairy farming is a in non-contract farmerscompared subsidiary occupation formore than 80 tocontract farmers. It is evident that per cent of households. there is shift in area from water- intensive non-basmati rice to less water intensive basmati rice by both contract www.ijar.org.in 63 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] and non-contract farmers. However, this These results clearly show the impact shift is more pronounced in the case of of government efforts to shift area from contract farmers than non-contract water-intensive non-basmati rice to less farmers. water intensive basmati.

Impacts of Contract Farming on increase). Wheat productivity declined Crop Productivity from 4.5 tonnes per ha in 2002 to 4.2 tonnes in 2007, which is consistent Contract farming has been used to with state level productivity trends promote new high-value crops, which (Figure 10). Because ofimprovement in are more input intensive, risky, and crop productivity, area underbasmati market dependent for profitability, to increased over the years. lower costs either by yield improvement or cutting input costs through better A comparison of productivity levels quality inputs and services, and to between contract and non-contract raise returns by value addition to farmers shows that the average yield primary produce. In order to examine of rice (basmati and non-basmati) is impact of contract farming on yields, we higher in the case of contract farmers compared productivity levels of major (Figure 11). Basmati rice yield is about crops such as rice (basmati and non- 23 per cent higher inthe case of contract basmati) and wheat between 2002 and farmers than non-contract farmers. 2007 on contract farms as well as Important reasons for higher yield between contract and non-contract include betterquality seeds, appropriate households in 2007. crop management practices introduced by sponsors, and close monitoring of the Per hectare productivity of basmati rice crop at all stages. The average cost of under contract farming showed an production is higher on contract farms increase of about 19 per cent (3.8 tonnes than non-contract farms but increased in 2007 against 3.2 tonnes in 2002), costs are compensated by higher yields. followed by non-basmati rice (10 per cent Net income perhectare is higher on

www.ijar.org.in 64 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] contract farms than non-contract farms Corporation of India (government (Sharma, 2007). parastatal), whose quality standards were not very Stringent. Most Perceived Benefits of a Constraints companies engaged incontract farming in Contract Farming are export oriented, therefore, emphasize Selected households were asked to list on quality. reasons for adopting contract farming and the results are presented in Non-contracting farmers citedsmall size Table.2 Although producers participate of holding to be the major constraint to in contract farming for many reasons, enter into contract farming because access to assured market was the most companies prefer large farmers. In some opted reason with 76 percent cases market prices were marginally respondents. Assured price was another higher or at par with contract prices, so reason foradopting contract farming in farmers did not find it beneficial to the case of about two-thirds of the enter into contract farming. Public respondents. This shows that farmers goodnature of extension services / prefer assured market to assured price. knowledge was also mentioned as one of Some companies offer a floor/minimum the reasons fornot adopting contract price in the agreement and final price is farming. Other reasons were reluctance decided based on market conditions, on the part of farmers to share while in some cases companies announce information about land with private a pre-decided price. However, under companies, uncertainty about company both conditions , farmer is free to sell policies and lack of provision of credit in the market if market price is higher by agribusiness companies. than sponsor price. Some estimates The results of Probitanalysis were indicate that more thanhalf offarmers obtained to examine the probability of honor the agreement and sell to the participation in contract farming and company. Other reasons for contract provide the inverse mill’s ratio for the farming include higher returns compared second stage analysis (Table 3). As withcompeting crops, less water hypothesized, farm size, human capital, requirement of basmati rice, inspiration and credit constraints were related to from fellow farmers who had adopted the likelihood of being a participant in contract farming, and personal relations contract farming. The positive and with the company. Access tobetter seed significant coefficient of farm andextension services arealso reasons for sizeindicates positivesinfluence participation in contract farming. onparticipation in contract farming. Small farmers are highly risk averse It is also important to understand the because of limited holdings, moreover, downside to contract farming. Some firms are also not interested in having farmers havediscontinued contract contracts with small farmers because farming orchanged the company. of high transaction costs. The Majority of farmers identified stringent coefficient of extension service by public quality control provisions by the agencies was found to be non-significant, company to be the most problematic which implies that public extension since they were accustomed to quality system isnot very effective. Membership checks by private traders and/or Food is farmer’s group / association / www.ijar.org.in 65 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] cooperatives significantly determines to participate in contract farming. It is participation in contact faring, also known that collective action Membership is positively related to enables small farmers to attain better participation, if a farmer is a member bargaining power, economics of scale of farmers group and reduce transaction costs. /association/cooperatives, he/she is likely

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Impact of Participation in Contract impact on farm income, which supports Farming on Farm Income our hypothesis. Contract farming firms demand minimum quality Table 3 also provides second stage standards from producers while impact results using gross farm income traditional channels are not so strict as the dependent variable. Ideally, our about quality issues. Educated dependent variable shouldbe net income. producers are more capable of meeting Unfortunately, accurate data on the these standards. Farmers with better value of some of inputs are difficult to access to institutional credit and better obtain. This is particularly true for extension services are likely to have inputs for which markets are not well higher income. developed. Therefore, we have use gross Conclusion and Observations income per hectare per household as the dependent variable in the second stage of regression. Agriculture is and will remain the The Second stage is corrected for sample mainstay for a large part of the rural selection bias. The inverse mill’s ratio, population in India in the coming years. lambda, corrects the error terms in the Promoting more rapid and broad-based impact equations to achieve consistent agricultural growth , particularly and unbiased estimates. Lambda is the achieving 4 percent agricultural growth expected value of the residuals that are not only in the eleventh plan but for truncated at the second stage OLS. The medium to longer term, will be extremely coefficient estimates in the second important not only for achieving higher stage are used to determine whether economic growth but also for alleviating and how household characteristics, farm poverty in rural areas. Most farmers are size, and other factors affect farm small and marginal, who have poor income. linkages with markets and who have low The second stage results support two risk-bearing capacity restricting their conclusions. First, the Heckman participation in fast changing dynamic selection model use in this study is markets. Corporate agriculture, systematically related to the variables, especially through contract farming, is showing a statistically significant being promoted by central as well as coefficient. Second, many of the state governments as a part of the variables are statistically significant strategy to solve some of these problems. coefficient. Second, many of the variables Contract farming is expected to enable are statistically significant with farmers to access better quality inputs coefficient signs consistent with such as seeds, fertilizers, pesticides, expectations. However, the factors that extension services, and credit from the are statistically significant are not the corporate sector. Contract farming has same as those in the first stage also potential to eliminate and/or reduce suggesting that there are differences in market and price risks, which farmers the determinants of being contract face. However it all depends on the farmers and farm income. nature of contracts, legislation for regulation of contract farming, The results indicate that education has enforcement, dispute resolution a statistically significant and positive mechanisms, role of government, etc. www.ijar.org.in 67 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

technology, timely information, The conclusions from this paper have extension services, enabling policy wider significance in connection with the environment , and promoting public question of how successful approaches to private partnership through providing contract farming can be developed. First incentives. ,there is a need to assist farmers to have better education, access to timely and References quality inputs such as extension services, instructional credit, and better CSO (2008) , National Accounts opportunities of off- farm income to Statistics, various issues, New Delhi: improve financial status. The results Central Statistical Organization , have shown that membership to farmers Ministry of Statistics and Programme organization was positively related to the Implementation , Government of India. likelihood of being a contract farmer. Thus, there is a need to promote non- Eaton, Charles and Andrew W. Shepred political famer’sorganizations to improve (2001) ,Contract Farming : Partnerships smallholders bargaining power as well as for Growth , FAO Agricultural Services reducetransaction costs to agribusiness Bulletin 145, Rome : Food and companies. Agricultural Organization (FAO) of the United Nations. Second, it is important toprovide an integrated set ofservices including credit FAI(2007) , Fertilizer Statistics 2006-07 and not just extension services andseed New Delhi : Fertilizer Association of as is being done. In order to provide India, New Delhi. these inputs and services, partnership between public andprivate Fan, Shenggan, Linxiu,Zhang and Xiaobo sectorcompanies is needed. Collaboration Zhang (2003) ,The Role of Public between public and private sectors Investments, Research Report No.125. forproviding extension services can take Washington,DC: International Food place easily. Government should initiate Policy Research Institute. amendments in legal and regulatory frameworks in input and output Fan, Shenggan, Peter Hazell, and markets, land market policies, etc. to SukhadeoThorat (1999), Linkages promote private sector participation in between government spending, Growth agriculture. and poverty in Rural India, Research Report No.110. Washington, DC: Finally, small farmers will be able to International Food Policy Research participate in the changing markets Institute. effectively and establish links with new market chains (supermarkets, Fan, Shenggen, Xiaobo Zhang, and agribusiness , companies, processors, NeethaRao(2004), Public Expenditure, exporters, etc) only if they have access Growth and poverty Reduction in Rural to better infrastructure , inputs and Uganda, Development Strategy and services, and are better organized. Policy Governance Division Discussion paper makers can support farmers through No.4.Washington, DC: International provision of required infrastructure and Food Policy Research Institute. www.ijar.org.in 68 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

GoI (2001), Indian Planning Experience- A Statistical Profile, New Delhi: Planning Commission.

GoI(2006),Towards Faster and More Inclusive Growth: An Approach to the 11th five year plan (2007-2012), New Delhi: Planning Commission.

GoI (2007),Agricultural Statistical at a Glance 2006,New Delhi: Directorate of Economics and Statistics, Ministry of Agriculture.

GoI(2008), Economic Survey 2007-08 and black issues, New Delhi: Economic Division, Ministry of Finance.

Heckman,J(1979), Sample Selection Bias as a Specification Error, Econometrica , 47(1), pp. 153-61.

Little, Peter D, and Michael J Watts (1994) , Living under Contract – Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Madison: University of Wisconsin Press, pp.216-47.

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Rural Area Health Issues and Challenges in India

K. Gangadhara Chary, Lecturer in Social Studies, Nagarjuna College of Education, Vallabh Nagar, Mahabubnagar

Billa Raja Rubi Kishore, Research Scholar, Department of Education, Acharya Nagarjuna University, Guntur, AP

Abstract: Since independence, major public health problems like malaria, tuberculosis, leprosy, high maternal and child mortality and lately, human immunodeficiency virus (HIV) have been addressed through a concerted action of the government. So many Indian rural area people do not have much money to spend on health because of their economical backwardness. The growth of public health in India has been very slow due to low public expenditure on health, very few public health institutes in India and inadequate national standards for public health education. Though a lot of policies and programs are being run by the Government but the success and effectiveness of these programs is questionable due to gaps in the implementation. A majority of these rural areas public health care is poor. Even in private sector, health care is often confined to family planning and antenatal care and do not extend to more critical services like labor and delivery, where proper medical care can save life in the case of complications. This paper focuses on issues and challenges of backwardness of public health in rural areas. And I tried to show some solutions to face these challenges. Keywords: Health system, living conditions, nutrition, safe drinking water, sanitation, socio-economic factors, medical care. Introduction and professional practice to prevent disease and promote health in "Health is a state of complete physical, populations. mental and social well being and not merely the absence of disease". - WHO According to historian Sunil Amrith, the diversion of public health resources Public health has often been defined as a towards population control and the use science dealing with the determinants of technocratic drug-based interventions and defense of health at the population to tackle specific diseases were level, while clinical medicine deals with responsible for the lack of adequate multiple maladies and their remedies at investments in public health the level of an individual patient. Public infrastructure in India. While India has health aims to understand and influence been sporadically successful in combating the social, cultural and economic diseases such as malaria in the years determinants of health as well as to after Independence, the absence of an study and structure health systems as overarching public health network has efficient channels for health services ensured that the country’s disease delivery. Public health is thus, a burden remains extraordinarily high, discipline built on the academic tradition wrote Indian epidemiologist T. Jacob of inquiry involving research, teaching

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John and his colleagues in a 2011 Lancet successive five-year plans and public recent paper. health efforts remained focused on specific vertical programmes, of which After independence, India started a the Family Planning programme was the planned effort on changing standard of most prominent. This contributed to the living style of people and government slow and inadequate improvement in was given priority to health care of health of the population in the period people and also taking care on socio from the 1950s to the 1970s. It may be economic development. Over the past six noted that until 1983 India had no decades, public health infrastructure and formal health policy; the planning services has undergone remarkable process and various committees changes and huge expansion in scale and appointed from time to time provided nature based on recommendations by a most of the inputs for the formulation of number of expert committees. Health health programme design. being a state subject under the constitution,, state governments has This unsatisfactory situation was undertaken various initiatives to recognized in the National Health Policy improve healthcare in their respective of 1983, which was critical of the states. The central Government has the curative-oriented western, urban-based policy direction and thrust to healthcare model of healthcare, and emphasized a through many national programs. primary healthcare approach. There were recommendations for preventive Health Care in India services and a decentralized system of healthcare, focusing on low expenditure, In India during British rule, state and de-professionalization (involvement of philanthropic intervention played a volunteers and paramedics) and significant role in healthcare, though community participation. Although, most of these facilities were located in significant expansion of healthcare large towns, thus projecting a clear infrastructure did take place during the urban bias and neglect of the rural 1980s, this remained grossly population. Modern medicine gradually underutilized because of poor facilities undermined systems of Ayurveda and and low attendance by medical staff, Unani, and those traditional inadequate supplies, insufficient hours, practitioners who survived often lack of community involvement and lack concentrated in the small towns and of proper monitoring mechanisms. The rural areas where modern medicine had Primary Healthcare Approach was never not yet penetrated. Despite the Bhore implemented in its full form, and committee's recommendations at the selective vertical programmes were dawn of independence towards correcting pushed as a substitute for comprehensive the rural-urban imbalance and health system development. suggestion of integrated planning for increasing access to health services, even This already unsatisfactory situation post independence the weakness of seriously worsened with the onset of public health services in rural areas and globalization-liberalization-privatization growth of private practice continued. from 1990s onwards. In this situation of Public health remained a low priority in inadequate and top-down development of

www.ijar.org.in 71 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] public health, the impact of neo-liberal maternal health care is poor. Even in policies from the 1990s has precipitated private sector, health care is often the crisis of the public health system; confined to family planning and there has been a retreat from even the antenatal care and do not extend to more nominal universal healthcare access critical services like labor and delivery, objectives. Guided by prescriptions from where proper medical care can save life agencies such as the World Bank, public in the case of complications. healthcare has been further constricted Healthcare Issues and Challenges to certain 'cost effective' preventive- promotive services and selective interventions, paralleled by spiraling and The Indian healthcare system is a unregulated expansion of the private dilapidated state. The costs seem to raise medical sector. Introduction of user fees everyday which makes it unaffordable for at various levels of public health facilities a large chuck of the population. Recently has also been a feature of the phase since Indian Health Progress (IHP) 1990s. organization discussed what the Indian healthcare system desperately needs and Healthcare is the right of every the steps to improve it. “India is the individual but lack of quality second most populous country in the infrastructure, dearth of qualified world and with a healthcare medical functionaries, and non- access to infrastructure that is over-burdened with basic medicines and medical facilities this ever increasing population, a set of thwarts its reach to 60% of population in challenges that the new agenda for India. A majority of 700 million people Public Health in India includes the lives in rural areas where the condition epidemiological transition (rising burden of medical facilities is deplorable. of chronic non-communicable diseases), Considering the picture of grim facts demographic transition and there is a dire need of new practices and environmental changes. The unfinished procedures to ensure that quality and agenda of maternal and child mortality, timely healthcare reaches the deprived HIV/AIDS and other communicable corners of the Indian villages. Though a diseases still exerts immense strain on lot of policies and programs are being the overstretched health systems. Health run by the Government but the success systems are grappling with the effects of and effectiveness of these programs is existing communicable and non- questionable due to gaps in the communicable diseases and also with the implementation. In rural India, where increasing burden of emerging and re- the number of Primary health care emerging diseases Inadequate financial centers (PHCs) is limited, 8% of the resources for the health sector and centers do not have doctors or medical inefficient utilization result in staff, 39% do not have lab technicians inequalities in health. and 18% PHCs do not even have a pharmacist. The causes of health inequalities lie down in the social, economic and political India also accounts for the largest mechanisms that lead to social number of maternity deaths. A majority stratification according to income, of these are in rural areas where education, occupation, gender and race

www.ijar.org.in 72 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] or ethnicity. Lack of adequate progress slow progress for two main reasons. on these underlying social determinants First, the programmes have tended to of health has been acknowledged as a benefit the few relatively well-off people glaring failure of public health. who can understand the system and capture the subsidies, rather than reach Lack of health insurance the more numerous poor people. Second, such programmes have built toilets that Lack of health insurance and its low remain unused because they are penetration causes further challenge technically or culturally inappropriate or towards access to healthcare. With 75 because the householders have not been percent of the Indian population paying taught the benefits of them. for healthcare services from their own pockets, it puts tremendous financial Underdeveloped Medical Devices burden. Most village people are working on daily wages basis. They are fighting The medical devices sector is the smallest daily with their expenditures. Because of piece of India’s healthcare pie. However, this they do not have much capacity to it is one of the fastest-growing sectors in spend their money in insurance. the country like the health insurance marketplace. Till date, the industry has Lack of awareness faced a number of regulatory challenges which has prevented its growth and Lack of awareness is a problem which is development. Rural hospitals are facing faced in building access to healthcare. lack of infrastructure facilities Mass awareness is important since even challenges. There is no sufficient medical if the treatment is free, unless the equipment in rural areas. Sometimes masses are educated and informed about proper medicines also are not available the symptoms of the diseases, its for diseases. Recently, the government repercussions and complications and has been positive on clearing regulatory finally the treatment available, there is hurdles related to the import-export of no guarantee that people will avail these. medical devices, and has set a few standards around clinical trials. Living conditions Inequality and Inadequacy Safe drinking water and sanitation are critical determinants of health, which It is unfortunate that while the incidence would directly contribute to 70-80% of all diseases are twice higher in rural reduction in the burden of communicable than in urban areas, the rural people are diseases. Full coverage of drinking water denied access to proper health care, as supply and sanitation through existing the systems and structures were built up programs, in both rural and urban areas, mainly to serve the better off. is achievable and affordable. While the urban middle class in India For many years, national governments, have ready access to health services that aid agencies, and charities have compare with the best in the world, even subsidized sewerage and toilet minimum health facilities are not construction as a means to improve available to at least 135 million of rural access. This approach has resulted in and tribal people, and wherever services www.ijar.org.in 73 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] are provided, they are inferior. While the systems, over 60% are located in urban health care of the urban population is areas. In the case of modern system provided by a variety of hospitals and (allopathic) practitioners, as many as dispensaries run by corporate, private, 75% are in cities.9 As a result, a large voluntary and public sector number of unqualified people (quacks) organizations, rural healthcare services, have set up medical practice in rural mainly immunization and family areas, and the rural population as a planning, are organized by ill-equipped result exerts pressure on urban facilities. rural hospitals, primary health centers Curative care, which is the main demand and subcentres. of rural people, has been ignored in terms of investment and allocation. In Much has been achieved in the last 54 addition, the percentage share of health years. The first landmark in official infrastructure for rural areas has health policy of independent India was declined from 1951 to 1993. the acceptance of the Bhore Committee recommendations of 1946, which laid the Some Other Challenges on Health foundations of comprehensive rural Issues health services through the concept of 1 Urban and Rural areas primary health care. Primary Health . : Lifestyle Centers were established in rural areas diseases due to changing working/living from 1952 onwards. The basic habits coupled with processed products infrastructure is that one PHC covers 30 increasing the instances of diabetes, 000 of the population and one sub centre cardio-vascular disorders, even cancer covers 5000 of the population. As of .Urban poor due to poor physical December 2000, there were 2935 infrastructure and awareness leading to Community Health Centers (CHC), 22 communicable and infectious diseases 975 PHC and 137 271 sub centers to like tuberculosis, typhoid and other cater to the needs of nearly 650 million water borne diseases. The same can be people. But present need is increased. said of villages with poor sanitation 2. Lack of access to Presently 25,308 PHC’s, 25,086 doctors facilities. healthcare services and 2,533 single doctor PHC’s are there. : It hard to find If we see the ratio between people and any significant medical care. Diagnosis doctor it is as 1 per 35,000 people. It is and treatment is just not accessible to unfortunate to note that due to regional hundreds of millions of Indians. one of imbalances, the type and quality of the biggest problems with healthcare in services being offered, adequacy and India, specifically diagnostics, is that of motivation of the staff, and shortage of the referrals or cut practice. It is the supplies in the Centers have attributed ethically questionable practice of sharing to gross underutilization of the fees with professional colleagues, such as infrastructure. physicians or laboratories, in return for being sent referrals. This problem is It is obvious that there is a marked especially prevalent in diagnostics, with concentration of health personnel to some doctors charging up to 70% of the maintain the heavy structures, in the pathology/radiology bills as a referral fee. urban areas. Of the 1.1 million registered Not only does this make quality medical practitioners of various medical healthcare unaffordable for a huge

www.ijar.org.in 74 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] number of patients, it also is inherently 8. Lack of education, gender inequality bad for the patient. and explosive growth of population 3. Lack “proper” healthcare, both in contribute to increasing burden of disease. quantity and quality: There is a serious lack of transparency. According 9. Expenditure on health by the to WHO, our per capita spending on Government continues to be low. It is not healthcare is in the bottom quartile viewed as an investment but rather as a amongst all countries? This has resulted dead loss. in an appalling lack in basic government 10. healthcare infrastructure. States under financial constraints cut expenditure on health. Growth in 4. A problem of unnecessary and national income by itself is not enough, if excessive diagnostic tests, a minor visit the benefits do not manifest themselves to the doctor Inadequate utilization of in the form of more food, better access to budgets, funds and resources by the health and education. government might be one of the main Conclusion cause of poor health status of people. Some of the main problems faced by Indian healthcare system are A good system of regulation is accessibility and affordability of quality fundamental to successful public health healthcare services and medicines to a outcomes. It reduces exposure to disease large chunk of our population. Also lack through enforcement of sanitary codes, of information and transparency are e.g., water quality monitoring, other major problems. slaughterhouse hygiene and food safety. Wide gaps exist in the enforcement, 5 Twin epidemic of continuing/emerging monitoring and evaluation, resulting in a infectious diseases as well as chronic weak public health system. This is partly degenerative diseases. The former is due to poor financing for public health, related to poor implementation of the lack of leadership and commitment of public health programs, and the latter to public health functionaries and lack of demographic transition with increase in community involvement. life expectancy. Revival of public health regulation 6. Economic deprivation in a large through concerted efforts by the segment of population results in poor government is possible through updating access to health care. Poor educational and implementation of public health status leads to non-utilization of scanty laws, consulting stakeholders and health services and increase in avoidable increasing public awareness of existing risk factors. laws and their enforcement procedures. There are several shortfalls that need to 7. India faces high burden of disease be addressed in the development of because of lack of environmental human resources for public health sanitation and safe drinking water, services. There is a dire need to establish under-nutrition, poor living conditions, training facilities for public health and limited access to preventive and specialists along with identifying the curative health services. scope for their contribution in the field. www.ijar.org.in 75 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

More investments in health Lessons for Developing Countries. infrastructure improved low cost London: Routledge diagnostics and a way to make the human resources required for the same  Venkatapuram, S. and Marmot, M. accessible to large sections of our 2009. Epidemiology and Social population that of ensuring generics and Justice in Light of Social low cost of variants of essential drugs for Determinants of Health Research. serious ailments has a significant role in Bioethics Vol.23 No. 2 pp.79-8. making medicines affordable. Along with free medicines, generic alternatives and  Sen, A. 2002. Why Health Equity? free diagnostics, healthcare is improving Health Econ 2002(11), pp.659-666 in India, at least is some states. One  Sen, A. K. and Nussbaum, M. (eds) thing that we do need to be cautious of is 1993. The Quality of Life. Oxford: about regulating prices and not letting Clarendon Pres. insurance providers control the healthcare system channeled through  Sheikh, K. and George, A. (eds) 2009 insurance and infrastructure Forthcoming Health Providers in strengthening, is inadequate to address India: On the Frontiers of Change. the current problems of unaffordable New Delhi: Routledge. health care and heavy financial risk, and the future challenges posed by aging  Ministry of Health and Family populations that are increasingly affected Welfare (MoHFW) 2009. National by non-communicable diseases. Rural Health Mission State Data Sheets as on 31.12.2008. Status of Also all National disease control NRHM, updated by states as of programmes are implemented through September – December, 2008. the existing government hospitals and Published on 16 January 2009, pp. 1- health centers. Over the years, a 145 campaign approach has been evolved to implement many of the national health  Bajpai, N. and Goyal, S. 2004. and disease control programme. And Primary Health Care in India: other sides we are all have a huge Coverage and Quality Issues. CGSD responsibility about facing in challenges Working Paper No. 15, pp. 1-39. of rural areas. We tried to develop literacy in rural areas and communicate  Banerjee, A., Deaton, A. and Duflo, about how to affects diseases and how to E. 2004. Health Care Delivery in face that. We have to give knowledge Rural Rajasthan. Poverty Action Lab about government health schemes and Paper No. 4, pp. 1-16. programs. Then only we can see a Healthy India.  Bajpai, N., Dholakia, R.H. and Sachs, Reference J. D. 2005. Scaling Up Primary Health Services in Rural India: Public Investment Requirements and  Venkat Raman, A. and Björkman, Health Sector Reform – Case Studies J.W. 2009 Public-Private of Uttar Pradesh and Madhya Partnerships in Health Care in India:

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Pradesh. CGSD Working Paper No. Statistics and Programme 29, pp. 1-51. Implementation, New Delhi.

 Jan Swasthya Abhiyan (JSA) 2008.  World Health Report 2000-Country Health Services and the National profile India. Rural Health Mission. A People’s Rural Health Watch Report  Arogya Raksha yojana web 30 Apr. conducted by Jan Swasthya Abhiyan 2012 (JSA) - People’s Health Movement, India.  Government of India. National Health Policy. Ministry of Health  Jan Swasthya Abhiyan (JSA) 2008. and Family Welfare, Government of Health Services and the National India, New Delhi: 2002 [PubMed] Rural Health Mission. A People’s Rural Health Watch Report  Kishore J. National Health Programs conducted by Jan Swasthya Abhiyan of India. New Delhi: Century (JSA) - People’s Health Movement, Publications; 2009. India.  Planning Commission. Eleventh Five  Chaudhury N., J. Hammer, M year plan (2007-2012) Planning Knemer, K. Muralidharan, and F.H. Commission, GOI New Delhi. Rogers (2006). ‘Missing in Action:  Teacher and Health Worker Absence Ministry of Health and Family Welfare, Government of India, New in Developng Countries’, Volume 20, November 1, Journal of Economic Delhi. National Population Perspectives, Pittsburg. Policy.2000.

 RBI (2004). State Finances—Study of

Budgets, Reserve Bank of India,

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 World Bank (2006)—India: Inclusive Growth & Service Delivery: Building on India’s Success, World Bank, Washington D.C..

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 NSSO 60th Round, Report No. 507(60/25.01/1), National Sample Survey Organisation, Ministry of

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Impact of economic reforms on agriculture sector --A study of Gudeppad village

Gugulothu Rajunayak, Research Scholar, Department of Economics, Kakatiya University, Warangal

Abstract The commercialization of Indian agriculture partly benefited Indian traders and money lenders who made huge fortunes by working as middlemen for the British. But most of the Indian people suffered miserably due to the reduction in cultivation of food crops. This situation was proved by the fact that till 1880 India had a surplus of foodstuffs to the extent of five million tons and by 1945 it had a deficit of 10 million tons.With the introduction of liberalization, privatization and globalization policies the commercialization of agriculture has taken a new shape in the Indian agricultural system. There are several factors which are driving the agriculture towards commercialization. In view of this situation the present study is proposed to assess and understand the impact and implications of commercialization of agriculture in the newly formed Telangana state. Introduction commercially viable projects at the cost India being one of the largest of agriculture. agriculture based economies in the world, it has been facing a lot of With this backdrop this paper challenges in the agriculture sector with aims to bring out the impact of economic the introduction of economic reforms in reforms in the field of agriculture by the year 1991.Before liberalization taking agriculture based village farmers were having access to seeds from Gudeppad for case study, where the government or from their fields. But farmers have introduced commercial with the liberalization India’s seed crops and how the liberalized markets market opened to global seed business have their impact on agriculture . The where the farmers have become the implementation of economic reform in victims of greedy seed companies. The the Indian agricultural sector has been a same thing is happened even in the gradual process. Globalizing agriculture utilization of pesticides. The has the potential to transform governments also reduced the subsidies subsistence agriculture to and left the farmers and their agriculture commercialized agriculture and to products to the market fluctuations. The improve the living conditions of the rural governments failed to introduce specific community. However, economic reforms packages for agriculture sector before within India are necessary to pave the introducing the economic reforms. And path to successful globalization. The on the other hand they are declaring crop stated objective of the new economic holidays, encouraging the commercial policy is to raise the economy’s growth crops, and doing land acquisitions for rate from the current 5.5 per cent developing real estate or other achieved over 15 years to about 7 or 8 per cent per year. Ahluwalia (1996) www.ijar.org.in 78 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] explains that this indirectly requires an input subsidy in per cent of GDP improvement in agricultural growth increased from 2.13 in the triennium from between 2 and 3 per cent in the ending 1982-1983 to 2.73 in the past to about 4 per cent per year. triennium ending 1992-1993. But the Although initially, with respect to benefits of these subsidies have accrued agriculture, there was no major policy to only certain classes of farmers in some reform package in the 1990s, it was regions cultivating irrigated crops. however anticipated that the opening up Furthermore, highly subsidized prices of of the agricultural sector to foreign inputs such as irrigation water and trade, the move to a market determined electricity for pump sets have encouraged exchange rate and reduction of cultivation of water-intensive crops, protection for industry would, over time, over-use of water, ground water benefit the agricultural sector.These depletion/salinity and water logging in include an 87 per cent cut in tariff on many areas. Subsidy for nitrogen agricultural products, sustenance of fertilizer on the other hand has resulted high-yield crop varieties, removal of in nitrogen phosphorous potassium minimum export price on selected imbalance and acted as a disincentive for agricultural products, a lift on quantity use of the environmentally friendly restrictions on the export of some crops organic manure. As a result, the linkage and various land reforms related to between food crops and non-food crops, tenancy rights and land ceilings. which include fodder, has been reduced. Although India’s economic These adverse consequences are a drain reforms were initiated in June 1991, the on the fiscal burden of central and state process of liberalization was Governments. implemented gradually and thus it is difficult to assess the full impact of the Review of literature liberalization measures. Nevertheless, an Objectives attempt is made to discuss what is The specific objectives of this research observable in terms of agricultural work include: growth. One observation is that the To analyse the pattern of land in the expected increase in exports due to study village liberalization simply did not occur. the To measure the impact of economic agricultural sector’s output growth reforms an agriculture in terms of decreased to 2.9 per cent during 1992- people’s attitudes. 1993 to 1998-1999. There was no major To assess the socio-economic changes breakthrough in developing new high- that occurred due to agriculture reforms yielding varieties during the 1990s and To understand the impact of economic there was a decline in the environmental reforms on ecology and environment. quality of land which reduced the Hypothesis marginal productivity of the modern The following hypotheses were inputs. One existing problem of India’s formulated and an attempt was made to agricultural protection is the use of input test the hypotheses in order to ascertain subsidies. The general argument the objectives and also to find out the favoring this has been that it is necessary impact. to encourage the use of particular inputs Economic reforms have changed the land for production for various benefits. the pattern www.ijar.org.in 79 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Economic reforms have changed the crop Of this 1600 acares are under agriculture pattern and allied industries. Total families of Socio economic status of the people the village are 670. Of these 220 families improved with the implementation of are from BC community,200 families are economic reforms from SC, 175 families are from OC Methodology: This is a micro-study on community and 80 families are from impact of economic reforms on other communities. agriculture sector in Gudeppad village of Selection of respondents Warangal District. S. Name of the No.of Land Sources of Data: The study is based on NO category families (acares) primary data. Primary data has been 1 BC 220 540 collected from the farmers, public 2 SC 200 200 representatives and general public of 3 OC 175 700 Gudeppad village that were randomly 4 Others 75 260 considered for the study. Data Collection Tools : Land pattern The required As the village is on the national highway information was obtained through and nearer to district head quarter land Interview Schedule and discussions with pattern i.e land utilization is different the officials and local leaders of political compared to other villages. Another parties.Data and opinions are collected reason for this is majority of the lands of from 100 respondents of that village. and this village are in the hands of OCs. the collected data classified and With the introduction of economic summarized by means of tabulation. reforms they converted the land from Gudeppad is a village situated on agriculture to allied industries and real highway 163 with a distance of 25 km estate purposes. from Warangal.It has the population of 2450. Of which majority are farmers. Total area of the village is 1700 acares. S.NO Name of the Land(acares) Earlier(agri) Present % category acares) (commercial) acares) 1 BC 540 540 140 26 2 SC 200 200 50 25 3 OC 700 700 420 60 4 Others 260 260 140 54 From the above table we can understand Majority of the farmers changed the that nearly 44 percent of the land has cropping pattern due to economic been changed from agriculture purpose reforms. They started cultivating to other purposes. Of these 26 percent is commercial crops instead of traditional BCs land, 25 percent SC s land 60percent crops like paddy. They are cultivating is of OCs and 54 percent belongs to banana and Apple bear and flowers for others. Based on this conclusion we can which demand is high in the nearby say remarkable change has come in the town. they are exporting these products land pattern. to other cities like Hyderabad,Medak and Cropping pattern Nalgonda.

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S.NO Name of the Land(acares) Traditional Commercial % category crops crops acares) 1 BC 540 220 180 45 2 SC 200 100 50 35 3 OC 700 130 150 53 4 Others 260 60 60 50 From the above table we can understand Economic status of the villagers that cropping pattern has been changed also changed due to these commercial in all categories. There are several crops. Majority of the families are reasons for this. Nearby market facilities, maintaining good living standard and regular incomes, more income compared comfortable urban amenities. They are to traditional cropping pattern. sending their children to the nearby towns for education. Economic status S.NO Name of the No.of Economic category families status improved 1 BC 220 140 2 SC 200 110 3 OC 175 120 4 Others 75 40 Majority of the families expressed that changed.Excessive utilization of commercial cropping pattern has pesticides in the commercial crops improved their financial status. polluted the ground water and soil Ecology and Environment which in turn showing its impact on With the modernized living styles and health. allied industries ecology and environment have been S.NO Name of the No.of polluted Not category families polluted 1 BC 220 100 120 2 SC 200 110 100 3 OC 175 120 110 4 Others 75 30 25

People expressed different opinion purpose to other purposes due to regarding the impact of environment, economic reforms and the cropping some of them are not in a position to pattern has been changed in all express their opinion. categories. majority of the people Conclusion expressed the same opinion so the Based on the data we can hypotheses stands right, majority of the conclude that nearly 44 percent of the farmers revealed their opinion that land has been changed from agriculture commercial cropping pattern has

www.ijar.org.in 81 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] improved their financial status, so the third hypothesis is also correct. References:

Ahluwalia, Montek S., “India‟s Economic Reforms: An Appraisal,” in Jeffrey Sachsand Nirupam Bajpa‟s (eds.), “India in the Era of Economic Reform,” Oxford University Press, New Delhi, 2000

Chaudhuri, Sudip, “Economic Reforms and Industrial Structure in India,” Economic and Political Weekly, January 12, 2002.

Dev, Mahendra S., and Jos Mooli, “Social Sector Expenditures in the 1990s: Analysisof Central and State Budgets,” Economic and Political Weekly, March 2, 2002.

Dreze, Jean, and Amartya Sen, “Economic Development and Social Opportunities,” Oxford University Press, New Delhi (1995).

Planning Commission, “Report of the Advisory Group on Tax Policy and TaxAdministration for the Tenth Plan,” 2001.

Economic Survey 2001-02 and 2003- 2005, Ministry of Finance, Government of India,2002

View of Dr. Rakesh Mohan, Deputy Governor, Reserve Bank of India, expressed inPublic Seminar organised by Institute of South Asia Studies in Singapore onNovember 10, 2006.

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The Impact of Liberalisation on Micro, Small and Medium Enterprises (MSMEs) With Special Reference to India

Guntukula Raju

Abstract Micro Small and Medium Enterprises (MSMEs) plays a momentous role in overall economic as well as social development of the country (India). This sector is a vibrant constituent of the overall manufacturing sector of the Indian economy. In addition, small-scale enterprises are considered an ‘engine of economic growth’ and as essential instruments for assisting the balanced regional development of the country. The small scale sector forms a principal part of the Indian manufacturing and contributing to a substantial proportion of production, employment and exports to other countries. The main objective of the present study is to examine the growth and performance of MSMEs after liberalization period based on a total number of units, production, employment and exports, and to know the impact of liberalization on the performance of small scale sector. The period of the present study is 1973-74 to 2014-15 and based on secondary data available at RBI and various annual reports of Ministry of Micro, Small and Medium Enterprises Government of India. Keywords: MSMEs, Liberalisation, Growth, Contribution, Employment, Exports.

Introduction and poverty alleviation. Indian small Micro, Small and Medium Enterprise scale sector is playing a substantial role (MSMEs) sector have emerged as a very in the economic development of the vibrant and dynamic sector of the Indian country and hashuge approaching for economy.These small scale employment creation .The business enterprisesplay an important role in environments in India drastically overall economic as well as social changed after the introduction of the development of the country. This sector economic reforms of the 1990s with is a vibrant constituent of the overall widening the scope for the private manufacturing sector of the Indian initiative and market forces.Changes in economy and small scale enterprises are the international economic scenario, the backbone of the industrial including theemergence of the world development. In addition, small-scale trade organisation (WTO) and also enterprises are considered an ‘engine of domestic reforms have brought several economic growth’ and these enterprises new opportunities and certain challenges acting as power and spirit of economic to thesmall scalesector (Kumar & development in the 21st century. Over Gugloth 2012).When liberalization the last several decades it not only plays procedure started,the Govt of India asignificant role in providing aimed at deregulations in varioussectors, employment at the low cost of capital encouragement to FDI(foreign direct requirement but also towards economic investment) andprivatization in the growth, balanced regional development industrial sectors restricted forstate and

www.ijar.org.in 83 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] public sector undertakings. This a single Ministry namely, ‘Ministry initiative taken by the government ofMicro, Small and Medium enterprises’. resulted in competition among the Definition of MSMEs: manufacturing sectors and the opening The small scale sector has of the economy. After this liberalization undergoneseveral changes regarding its process small scale sector is facing a lot definition. The Small Scale Industries of challenges in several areas such as (SSI) name has been changed asMicro, marketing problems, high competition, Small and Medium Enterprises (MSMEs) consumermanagement and maintenance with the introduction of MSMED Act, and shifting in labour and capital. Post 2006. The definition given by Micro, liberalization period economic conditions Small and Medium Enterprises have generatedimmense growth prospect Developmental (MSMED) Act, 2006 to for the small scale businesses. The Micro Small and Medium Enterprises ‘Ministry of Agro & Land explained in below table. Ruralindustries’ and ‘Ministry of Small Scale Industries’ have been merged into Type of Enterprise Engaged in Manufacturing or Engaged in Providing or Production of Goods rendering of Services (Investment in Plant and (Investment in Machinery) Equipment) Micro Enterprise Does not Exceed 25 Lakhs. Does not Exceed 10 Lakhs. Small Enterprise More than 25 Lakhs but does More than 10 Lakhs but not exceed 5 Crore. does not exceed 2 Crore. Medium Enterprise More than 5 Crore but does More than 2 Crore but not exceed 10 Crore. does not exceed 5 Crore. Source: Micro, Small and Medium Medium enterprises from the time Enterprises Development Act, 2006. whenglobalization policies occurred in Although MSMEs have been defined by India i.e. 1990. From 1991 micro, small different economistsin a different way and medium enterprises (MSMEs) found but they have been recognized the pertinent environment in India unanimously as an important sector for because of globalization, national generation of employment as well as liberalization etc.Globalization offers a amajor contributor of livelihood for the situation within which MSMEs poor people. necessitatemore and morecompete as Review of past work: well as perform Gupta & Ranjan An extensive literature review has (2014)studied empirically to show become an important part of any study. whether thegrowth in a number of small The existing relevant literature onmicro scale units in post liberalization period small and medium enterprises is has contributed to the proportionate reviewed with special reference to their growth of MSMEs inseveral parameters performance, policy, problems and namely output, employment and prospects in pre and post reforms period, exports.They found that from 1991 financial and other related aspects of the reforms have not contributed to risingof study. Singh (2014)studied the growth MSME sector’s graph substantially. Chandraiah and Vani (2013) and performance of Micro, Small and

www.ijar.org.in 84 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] highlighted the role of smallscale period.Annual average growth rate industries in the economic development (AAGR)has been used as the main of India and also theimpact of statistical tools to compare globalization on the growth and theperformances of MSMEs during pre performance of MSMEs based on and post liberalization period. secondary data. Thestudy period was Results and discussion: limited to 19 years (1992-93to 2010-11). Through this present paper, an empirical Authors analyzed theperformance Micro study has been done to highlight whether Small and Medium Enterprises based on the growth in a number of small-scale a number of units, production, units after liberalization has contributed employment, and exports in the post to the proportionate growth of MSMEs liberalization period.Moreover, they contribution in several parameters focused on main features of 1991 Small namely production, production per Industrialpolicy andthebenefits and employee, employment and exports.Since disadvantages of globalisation. the introduction of the planning system Objectives of the study: in 1950-51significant effective efforts Some of the objectives which are have been made forthe development of intended to be accomplished through this Micro, Small and Medium enterprisesin paper can be listed as follows: the vision of their potential for  To study the performance of MSMEs generating employment and poverty in India during the pre and post alleviation. In the light of liberalization, liberalization period. the small scale sector has been  To examine the impact of undergoing a rapid transition in India. liberalisation on the performance of The rapid of transition of small scale MSMEs enterprises has increased because of Methodology: economic reforms by both central and state governments. TheTable1 and This paper examines the impact of Table2 show the performance of MSMEs liberalisation on micro small and inIndia during pre and post liberalisation medium enterprises in India which periods.The micro small and medium means the impact on MSME units, enterpriseshave recorded consistently production, employment and exports to decentgrowth in terms of anumber of other countries. To achieve the above- units, production,employment mentioned objectives data is gathered creationandgrowth in exports over the from secondary sources. The secondary period.The number of micro small and datacollected from RBI databaseand medium enterprise units has increased various MSME annual reports.The study from4.2 lakh units in 1973-74 to 18.2 covers a period from 1973-74 to 2014-15.I lakh units in1989-90 during the pre have taken data from 1973-74 onwards liberalisation period.It can be observed because the first census for the MSMEs through the Table1 that there has in Indiabegan during 1973-74 and no beenincrease in productionover the- authentic data about the small enterprises was available before tothis

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Table1: Performance of Micro Small and Medium Enterprises in India Pre Liberalization Year units Production Employment Production Exports in (lakh) (Rs. (lakh) per employee (Rs crores) crores) (thousand)

1973-74 4.2 34200 39.7 86 400 1974-75 5 36100 40.4 89 500 1975-76 5.5 42500 45.9 93 500 1976-77 5.9 46800 49.8 94 800 1977-78 6.7 52800 54 98 800 1978-79 7.3 58200 63.8 91 1100 1979-80 8.1 66400 67 99 1200 1980-81 8.7 72200 71 102 1600 1981-82 9.6 78300 75 104 2100 1982-83 10.6 84700 79 107 2000 1983-84 11.6 93500 84.2 111 2200 1984-85 12.4 104600 90 116 2500 1985-86 13.5 118100 96 123 2800 1986-87 14.6 133600 101.4 132 3600 1987-88 15.8 150500 107 141 4400 1988-89 17.1 169900 113 150 5500 1989-90 18.2 189900 119.6 159 7600 AAGR 9.64% 11.34% 7.20% 3.98% 21.3% Source: Reserve Bank of India and Ministryof Micro, Small and MediumEnterprises, Government of India. periodand it is with increased rate in comparison to total number of units. The average annual growth rate (AAGR)of production over the period is 11.34% which is high compared to number of units is 9.64% which look like to be a good indication for overall productivity of units.During the pre liberalisation period the exports have increased from Rs.400 crores in 1973-74 to Rs.7600 crores in 1989-90 with 21.3% of average annual growth rate. Small scale sector has been playing a major role in Indian exports. Moreover, with the 7.20% of AAGR in employment over the period this sector is one the major contributor of employment to the rural and urban population. The period from 1990-91 to2014-15 post globalization period.Table2 shows the performance of micro small and medium enterprises after liberalisation. The increase in a number of small scale units, production, employment and exports have shown proportionate growth over the period. The number of small scale units increased drastically after the introduction of economic reforms from 18.2 lakhs in 1989-90 to 67.9 lakhs units in 1990-91 and at present the number of units are 510.6 lakh in 2014- 15. With this increase in units also helped to rise in production of small scale enterprises from 84,728 crores in 1990-91 to 1,809,976 crores in 2012-13. Micro small and medium enterprisesaccounts for about 43 percent of total exports and a major contributor for exports in Indian industrial sector. As already mention above the small scale sector is one of the major source of employment for the poor people after

www.ijar.org.in 86 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] agriculture sector. Table2: Performance of Micro Small and Medium Enterprises in IndiaPostLiberalization Year units Production Employment Production Exports(Rs. (lakh) (Rs. crores) (lakh) per crores) employee(Rs. thousand) 1990-91 67.9 84728 158.3 54 9664 1991-92 70.6 87355 166 53 13883 1992-93 73.5 92246 174.8 53 17784 1993-94 76.5 98796 182.6 54 25307 1994-95 79.6 108774 191.4 57 29068 1995-96 82.8 121175 197.9 61 36470 1996-97 86.2 134892 205.9 66 39248 1997-98 89.7 146263 213.2 69 44442 1998-99 93.4 157525 220.6 71 48979 1999-00 97.2 170379 229.1 74 54200 2000-01 101.1 184401 240.9 77 69797 2001-02 105.2 282270* 252.3 112* 71244 2002-03 109.5 306771 263.7 116 86013 2003-04 114 336344 275.3 122 97644 2004-05 118.6 372938 287.6 130 124417 2005-06 123.4 418884 299.9 140 150242 2006-07 P 128.4 1198818 805.2 151 182538 2007-08# 377.4 1322777 842 157 202017 2008-09# 393.7 1375589 880.8 156 NA 2009-10# 410.8 1488352 921.8 161 391159 2010-11# 428.7 1653622 965.2 171 507739 2011-12# 447.6 1788584 1011.7 177 630105 2012-13# 467.5 1809976 1061.4 171 698166 2013-14# 488.6 NA 1114.3 NA 806878 2014-15# 510.6 NA 1171.3 NA NA AAGR 12.06% 18.41% 11.34% 5.71% 20.1% Source: Ministry of Micro, Small & Medium Enterprises, Government of India. Notes: 1. P: Provisional. 2. *: Since 2001-02, production figures are at 2001-02 prices, since 2006-2007 production figures are at2004-05 prices.3. # indicates projected figures. 4. The data for the period up to 2005-06 is of Small Scale Industries (SSI). Subsequent to 2005-06, data with reference toMicro, Small and Medium Enterprises (MSMEs) are being compiled. 5. AAGR: Average annual growth rate. 6. NA: Not available. the production per employee decreased The employment from this sector after 1990 was 54 thousand in 1990-91 increased from 158.3 lakhs in 1990-91 to from 159 thousand in 1989-90, later on, 1,171.3 lakhs in the year of 2014-15. But increased over the period in the year of

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2012-13 it was 171 thousand productions Summary and conclusions: per employee.Annual Average Growth Today, micro small and medium Rate (AAGR) has been used as amajor enterprises occupy a position of statistical measure to compare the strategicimportance in the Indian performance of MSMEs during before economic structure due to its substantial and after liberalizationperiod.AAGR in contribution in terms of production, respect of Employment and Export is employment and exports. The MSMED lower in PostLiberalization period Act. 2006, perhaps the most crucial of compared to Pre Globalization period. In the recent policy changes in small scale the case of number of units, production sector. In this present study, an effort and production per employee has been made to analyse the impact of inPostLiberalization periodAAGR is liberalisation on the growth of small slightly higher than that of before scale businesses. The comparative liberalisation. The increase in growth analysis of the performance of key rate innumber of units of small scale parameters viz., units, production, enterprises in post reforms period may employment and exports has been be due to licensingpermit raj by reducing studied between pre and post the state intervention in business liberalisation period. Domestic reforms activities. have brought several new opportunities However, the growth rate in case of and certain challenges to the small scale employment decreased in post-reforms sector.The liberalization policy was period. This may perhaps due to the aimed to deregulate the market as well adoption of capital intensive modern as keep investments flowing did technologyby the small scale enterprises manageto growthin the number of units, to some extentin the course of the post but their overall employment and liberalisation period.Moreover, the exports leave a lot to be desired. The growth rate of exports after liberalisation increase in number of small scale units, period is not satisfactory. It looks that output and production per employeehave investment coming from outside is shown proportionate growth over the intended to tap local market rather than post liberalisation period, whereas export to export.Even though the central and and employment have shown negative state governments in India have growth significantly.The findings of the takencertain measures for development study indicate that smallscale enterprises of the small scale sector’sperformance in are affected in the liberalized era and the era of liberalization but the facing alot of problems to run their performance ofMSMEs after industries. Thus it has been observedthat liberalisation period has not been liberalization has resultedin more satisfactory.The small scale sector in competition, difficulty in marketing, developing countries like India faces a increased quality consciousness, hard situation because ofunjustified reduction in profit margin and dumping competition from large scale industries of cheaper goods byother countries. dueto taking out of subsidy, shortage of References: infrastructure, challenges on Bhavani, T. A. (2002). Small-scale units manufactured goods standardization, in the era of globalisation: Problems and anti-dumping policy, overall quality prospects. Economic and Political management etc. Weekly, 3041-3052. www.ijar.org.in 88 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Chandraiah, M., & Vani, R. (2013). The Pacific Journal of Marketing & Impact of Globalization on Micro, Small Management Review, ISSN, 2319-2836. and Medium Enterprises with special reference to India. Innovative Journal of Business and Management, 2(5). Das, K. (2008). Micro, Small and Medium Enterprises in India: Unfair Fare. Gujarat Institute of Development Research. GUPTA, S., & RANJAN, R. (2014). Impact of Liberalization on Contribution of MSMEs in Economic Development of India. Economic survey, 2012, 13. Kumar, N. B. K., & Gugloth, S. (2012). Micro, small and medium enterprises in the 21st century. ZENITH International Journal of Business Economics and Management Research, 2(5), 23-38. Lahiri, R. (2012). Problems and prospects of micro, small and medium enterprises (MSMEs) in India in the era of globalization. In the International Conference on Interplay of Economics, Politics and Society for Inclusive Growth Organized by Royal College of Thimphu, Bhutan. (October 15 and 16, 2012). http://www. rtc. bt/conference. Sandesara, J. C. (1993). Modern Small Industry, 1972 and 1987-88: Aspects of Growth and Structural Change. Economic and Political Weekly, 223-229. Singh, M. (2014). Growth in Micro, Small and Medium Enterprises in India after Globalization. Radix International Journal of Research in Social Science, 3(5), 2. Subrahmanya, M. B. (2004). Small industry and globalisation: Implications, performance and prospects. Economic and Political Weekly, 1826-1834. Tendulkar, S. D., & Bhavani, T. A. (1997). Policy on Modern Small Scale Industries: A Case of Government Failure. Indian Economic Review, 39-64. Uma, P. (2013). Role of SMEs in Economic Development of India'. Asia www.ijar.org.in 89 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

An Analysis of Agricultural Infrastructure Facilities before and After Globalization Era: An Empirical Study

Dr. Harishankar Banothu Department of Economics, Kakatiya University, Warangal, (T.S)

Abstract: Infrastructure is an important input for the production process, which can raise the productivity of other sectors. Infrastructure connects goods to the markets, workers to the industry, people to services and the poor in rural areas to urban growth centers. An adequate infrastructure can lead to lower costs, enlarge markets and facilitate trade. Infrastructure includes the entire spectrum of essential services such as transportation (railways, roads and road transport, civil aviation, ports and shipping), power generation, distribution and transmission, telecommunications, postal facilities, health facilities, education, basic amenities of life, etc. Since, infrastructure is a prerequisite for economic development, its deficiency can lead to backwardness of the region. This study uses the primary and secondary data, the primary data have been collected from 50 peasants in the sample village of Ameenabad in Channaraopet mandal of Warangal district. The sample farmers have been restricted to the above age group of 50 years, why because the data have to be collected before and after the globalization era and irrespective of social and landholding categories. For the collection of data the researcher used the recall method. The secondary data collected from various sources. This study has its own limitations like the agricultural infrastructural facilities are irrigation, marketing, credit, storage and other permanent inputs. Keywords: Infrastructural facilities, marketing, credit, storage, globalization, recall method

I. Introduction: by evaluating the infrastructure In the contemporary societies, statistical system of India. The infrastructure is considered as the root Commission stated that the and pace setter of economic growth and Infrastructure is an important in one of the major determinant factors of influential the effective function of all economic development. The functioning inputs these are vital to a broad diversity of any economy is determined by the of production activities. Un-non- persistence of infrastructural facilities. availability of quality infrastructure will The role of infrastructure for economic act as a strict constraint on the development was renowned early productive capacities of the economy. eminent economists (Rosentein- The Commission reported that Rodan,19431; Ragner Nurske, 19522; infrastructure is an important input for Hirschman,19583; Rostow,19604; industrial and overall economic Myrdal, 19685). The significance of development of a country. According to infrastructure was discussed broadly by Rangarajan Commission, the 6 the Rangarajan Commission in 2001 infrastructure tends not to be user or

www.ijar.org.in 90 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] user specific and typically have long-lived health facilities, education, basic engineering structures. It indicated six amenities of life etc. Since, infrastructure pertinent characteristics for is a prerequisite to economic identification of infrastructure sub- development, its deficiency, ipso facto, sectors, viz. natural monopoly, non- explains the backwardness of the tradability of output, bestowing regions. externalities on society, high-sunk costs or asset specificity, non-rivalness (up to II. Review of Literature : 7 congestion limits) in consumption, and Vijay Paul Sharama (2011) During possibility of price exclusion. Based on the last two decades post LPG period, the six characteristics of infrastructure food grains production increased from as defined above, Rangarajan 177.4 million tonnes in Time of Commission suggested that following Estimation 1993-94 to 227.8 million sub-sectors may be considered as tonnes in Time of Estimation 2009-10, or infrastructure like Railway tracks, by over 28 percent. However, the highest signalling system, stations, Roads, increased was observed in case of cotton bridges, Runaways and other airport (>200% increase), followed by fruits and facilities, Transmission and distribution vegetables (97%), condiments and spices of electricity, Telephone lines, (66%) and wheat (39%). Pulses recorded telecommunications network, Pipelines the lowest increase in production, from for water, crude oil, slurry, etc, 12.7 million tonnes in Time of Waterways, port facilities, Canal Estimation 1993-94 to 14.6 million networks for irrigation and Sanitation or tonnes in Time of Estimation 2009-10. 9 sewerage. Vijay Paul Sharma (2011) Net irrigated area has increased from around The present era of globalization, any 21 million hectares (17.6% of total net nation in the globe cannot survive sown area) in 1951-52 to over 63 million without strong and sound infrastructure. hectares by 2008-09 (about 45 percent of The role of infrastructure in the NSA). Gross irrigated area has increased extinction of economic development of an at faster rate from about 23 million economy and also the positive direction hectares to 88.4 million hectares due to of infrastructure functioning in the increased intensity of cropping on economy be needed like the India and irrigated lands. Over 85 percent of other third world nations. The basic addition to irrigated area in the last construction and the place of three decades has come from infrastructure sector as well as of its groundwater (mostly from tube-well) and soundness are critical to the security of the balance from surface irrigation economy’s and overall development. The (almost entirely from large public sector importance of infrastructure sector canal system). 10 would be clear from the fact, that it (FAI, 2010) The utilization of NPK includes the whole spectrum of essential has enormously increases during the post services such as transportation (railways, LPG period, In the Time of Estimation roads and road transport, civil aviation, 2002-03, out of 483 districts, 36 districts ports and shipping), power generation, (7.5%)were using more than 200 kg per distribution and transmission, hectare, while over one-third of the telecommunications, postal facilities, districts were consuming less than 50 kg. www.ijar.org.in 91 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Between the Time of Estimation 2002-03 activities, that way I selected above 50 and Time of Estimation 2009-10, number years of age people. Recall and of districts consuming more than 200 comparatively question and answer kg/ha more than tripled from 36 in to methods both have adopted to collect the 112. In the Time of Estimation 2009-10, pre and post LPG period information for 188 out of 538 districts (about 35%) this study. The secondary data has been consumed more than 150 kg per hectare, gathered from various sources like, 105 districts between 100-150 kg and 127 publication of journals, books, reports districts between 50-100 kg/ha. About 22 and the official websites. Even though percent of the districts had less than 50 this study has its own limitation, the kg/ha fertilizer use, much lower than simple statistical percentage and average recommended levels. Further less than tables have been adopted for the study. 20 per cent of the districts accounted for about half of total fertilizer consumption Objectives: in the country, indicating a high degree 1. To find out the socio-economic of concentration of fertilizer use. features of the respondent in the sample Chakraborty Guha (2009)16 and exert village. that there is an urgent need to re- 2. To analyze the agricultural energise India’s rural economy, including infrastructure facilities of the respondent both agricultural and the non-farm farmers in pre and post LPG periods in sector through create the sound rural the sample village. infrastructural facilities like road 3. To offer the suitable suggestions transport, electricity, health, education, to overcome problems during the LPG irrigational, marketing and credit etc. period. Hypotheses: In this connection the present study 1. Agriculture and its activities are focus on the agricultural infrastructural gradually reduces during the post LPG facilities in the both pre and post LPG period. periods. 2. Agriculture infrastructure facilities are increases when compared to III. Methodology: pre LPG to post LPG period. The data base for the study uses the IV. Results and Discussion: primary and secondary data, the primary To fulfil the objectives and hypotheses data has been collected from the this study adopting the 13 simple respondent farmers in Ameenabad average and percentage tables, first four village of Channaraopet mandal in tables age, education, social category and Warangal rural district of Telangana occupational status reveals the socio- state. For the collection of the data the economic status of the respondents. The structured questionnaire applied on 50 remaining 9 tables gives the information respondents who are above 50 years of of agriculture infrastructural facilities age group only not less than that. Why such as landholdings, cropping pattern, because the respondents are farming utilization of fertilizers and pesticides, community in both the periods of pre irrigational sources and systems of LPG and post LPG. In the introduce of irrigation (means of irrigation), LPG and at present all the respondents institutional and non-institutional credit are directly involve in the agriculture sources, means of transport and www.ijar.org.in 92 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] marketing facilities are analyzed for the information whatever mentioned for the both pre and post LPG periods. The study. following discussion gives the entire Table – 1 Age-wise Distribution of the Respondents Age Respondents Percentage 50 - 55 12 24.0 56 - 60 18 36.0 Above - 60 20 40.0 Total 50 100.0 Source: Field Study The age-wise distribution of the respondents have been given from the above table, the total 50 respondents are distributed in three different age groups, such as 50 to 55, 56 to 60 and above 60 years. Out of, 40.0 percent are in the above 60 years of age group as the highest followed by 36.0 of respondents in 56 to 60 years and 24.0 percent are in 50 to 55 years of age. The age groups of 56 – 60 and above 60 years are 76.0 percent it is indicating the respondent farmers are elder age groups because the researcher has specifically selected the above 50 years of age group farmers only, why because, these farmers are doing the agriculture since the above 25 years which means those are involving the agriculture activities before and after the LPG periods, in this reason the above 55 years of farmers are at the significant level. Table – 2 Social Category-wise Distribution of the Respondents Social Category Respondents Percentage SC 03 6.0 ST 15 30.0 BC 22 44.0 OC 10 20.0 TOTAL 50 100.0 Source: Field Study The above table reveals the social The above table shows the category-wise distribution of the literacy particulars of the respondent respondents in the sample village of farmers in the sample village. Out of the Ameenabad in Warangal rural district. total 64.0 percent are illiterates the rest Out of 50 respondent farmers, 44.0 of 36 percent are literates. In the percent of BC categories, 30.0 percent literates 24.0 percent are completed their are from ST, 20. 0 percent is in OC and primary level of education, 8.0 percent only 6.0 percent of SC. The social have secondary and only 4.0 percent are category of distribution of the sample obtained the higher education. Thus the respondents are not similar why because illiterates are at dominating it is due to the sample selection is randomly all the sample respondents are in the age selected, even though the demographic of above 50 years, i.e. they born in 1960s feature of the village is also indicating at that time the educational facilities are the same direction, thus the social far away to the rural areas, in this regard category of the respondents are reflecting majority of the respondents are the same direction. illiterates.

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Table – 3 Literacy Particulars of the Respondents Levels of Education Respondents Percentage Illiteracy 32 64.0 PE 12 24.0 SE 4 8.0 HE 2 4.0 Total 50 100.0 Source: Field Study

Table – 4 Agricultural Information Particulars B-LPG Percentage A-LPG Percentage Agriculture as Main 39 78.0 28 56.0 Occupation Non-Agriculture as 11 22.0 22 44.0 Main Occupation Own Land 40 80.0 23 46.0 Leased Land 10 20.0 27 54.0 Average Landholding 6.75 2.65 Source: Field Study

The main theme of the present occupation is 22.0 percent in B-LPG and research paper really starting from this at present A-LPG is 44.0 percent. Before table – 4, the above table depicts the 1990 B-LPG period 80.0 percent of agricultural information of the respondents was possessed the own land respondent farmers present and the and only 20.0 percent are in leased land. before the LPG period. The Before LPG But after the 1990 the own lands are period mean at the time of 1990, why reduced to 46.0 percent and at the same because the new economic reforms have time the leased in lands are at significant been initiated in 1991 by the government level of 54.0 percent. In case of average of India. In this connection the scholar landholdings 6.75 acres before LPG and gathered the information by recall it is 2.65 acres at present. Thus the method from the respondent farmers. agriculture activities are sinking during The main agricultural information like, LPG period the study is an evident. Due occupation of agriculture, non- to the impact of new economic reforms agriculture, own land, leased land and the agricultural activities are in the rural the average landholding, out of 50 areas are in the diminishing direction. respondents, 78.0 and 56.0 percent are having the agriculture as the main occupation B-LPG and A-LPG respectively. The non-agriculture www.ijar.org.in 94 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Table – 5 Cropping Pattern of Food Crops B-LPG A-LPG Name of the Crop Respondents Percentage Respondents Percentage Paddy 24 48.0 38 76.0 Jawar 32 64.0 02 4.0 Maize 29 58.0 35 70.0 Ragi 12 24.0 0 0.0 Pulses 42 84.0 12 24.0 Source: Field Study During the LPG period how the cropping patterns of food and non-food food crops are growing by the sample crops of the sample farmers in the study farmers of the study is analyzing by the area. Before the LPG the food crops of researcher. Due to the new economic Jawar, Maize Ragi and Pulses were reforms, in agriculture the tremendous growing at significant level. During the changes have been taken place, in the LPG the Paddy and Maize both crops are form of IAAP, IADP, HYV and Green at significant, the rest of Jawar, pulses revolution, as these result the cropping were significantly reduced, during the pattern of the Indian agriculture has LPG period the traditional food crops been shifted from the traditional system like Jawar and Ragi both are in negative to modern cropping pattern, in this result including the pulses but the Paddy aspect the table 5 and table 6 givens the and Maize are in positive.

Table – 6 Cropping Pattern of Non-Food Crops B-LPG A-LPG Name of the Crop Respondents Percentage Respondents Percentage Cotton 08 16.0 42 84.0 Chilly 12 24.0 26 52.0 Turmeric 24 48.0 18 36.0 Ground Nut 38 76.0 26 52.0 Other Oil Seeds 12 24.0 14 28.0 Source: Field Study During the LPG the number of these two crops are 84.0 and 52.0 percent agricultural and agro-based industries at present. In the Groundnut and was established. The Paddy and the Turmeric 76.0 and 48.0 percent before Maize both are agro-based and food LPG and these are 26.0 and 18.0 percent process industrial crops. In the aspect of at present. Thus the cotton and chilly are non-food crops Cotton, Chilly and Other in commercial crops and Paddy and oilseeds are in the positive direction, Maize in food crops are in progressive. Turmeric and Groundnut are in the While the rest of food and non-food crops negative direction. Before the 1990, the are in negative shade during the LPG cotton and chilly are 16.0 and 24.0 period. The following table – 7 gives the percent of farmers was cultivated, but information of fertilizers used by the

www.ijar.org.in 95 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] respondent farmers before and after LPG their different cultivating practices, such periods. The respondent farmers have as DAP, Urea, Super Phosphate, been utilized the different fertilizers of Complex, Manure and Pesticides etc. Table – 7: Fertilizers Particulars B-LPG A-LPG Name of Fertilizer Respondents Percentage Respondents Percentage DAP 29 58.0 45 90.0 Urea 40 80.0 50 100.0 Super Phosphate 30 60.0 14 28.0 Complex 24 48.0 46 92.0 Manure 48 96.0 12 24.0 Pesticides 28 56.0 42 84.0 Source: Field Study Before LPG, DAP – 58.0, Urea – 80.0, when compared to pre LPG period. While Super Phosphate – 60.0, Complex – 48.0, the Manure and Super Phosphate are Manure – 96.0 and Pesticides – 56.0 reducing during the LPG period. The percent. At present DAP – 90.0, Urea – major fertilizers like DAP Complex and 100.0, Complex – 92, Pesticides 84.0, Urea including the pesticides are in Super Phosphate – 28.0 and Manure 24.0 positive direction and the rest of are in percent. Thus it is clear that the Urea, negative way when compared to pre LPG DAP, Pesticides, Complex fertilizers and to post LPG period in the study area. pesticides are using at significant level Table – 8 Irrigation Particulars B-LPG A-LPG Source of Irrigation Respondents Percentage Respondents Percentage Open Well 29 58.0 24 48.0 Bore Well 10 20.0 22 44.0 Canal 12 24.0 32 64.0 Streams 02 4.0 02 4.0 Source: Field Study The above table reveals the and only 4.0 percent have the streams. irrigation facilities of the respondents in During the LPG period the canal and the study area. The mains irrigational bore-well irrigation have been observed sources are open-well, bore-well, canal the remarkable change as positive while and streams have been observed in the the open-well irrigation is come down to study area. There are 58.0, 24.0, 20.0 and 48.0 percent, but at the same time the 4.0 percent of respondent farmers were stream irrigational as the same. It is used the irrigational source are open- indicating the commercial crops have well, canal, bore-well and streams been increased instead of food crops respectively before LPG period. After the major commercial crops are requiring the LPG, 64.0 percent have canal, 48.0 irrigation, due to this reason the farmers percent open-well, 44.0 percent bore-well

www.ijar.org.in 96 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] are digging the bore wells, this study is reflecting this fact.

Table – 9 Particulars of Irrigation Systems B-LPG A-LPG Irrigation Systems Respondents Percentage Respondents Percentage Yatas 18 36.0 00 0.0 Manual 10 20.0 00 0.0 Oil engines 38 76.0 10 20.0 Motors 15 30.0 37 74.0 Drip 00 0.0 04 8.0 Source: Field Study

The above table – 9 shows the the respondents are using the motors different irrigational systems in the 84.0 percent, 20.0 percent are oil engines study area. Each irrigational system be and only 8.0 percent are in drip systems estimated to 50 respondents, out of 76.0, respectively. due to new economic 36.0, 30.0 and 20 percent of respondents reforms the traditional irrigational were used the oil engines, yatas, motors systems are ignored and the modern and manual type of irrigation systems systems are in forceful in the form of before the LPG period. After the LPG, electrical motors and drip systems.

Table – 10 Availability of Institutional Credit Facilities B-LPG A-LPG Institutional Sources Respondents Percentage Respondents Percentage Commercial 19 38.0 42 84.0 Banks RRB 22 44.0 36 72.0 PACS 32 64.0 48 96.0 Micro Finance 00 0.0 37 74.0 ITDA 26 52.0 32 64.0 Source: Field Study The above table – 10 reveals the respectively before the LPG period, after availability of institutional credit the LPG, PACS – 96.0, CB – 84, MF – facilities to the respondent farmers 74.0, GVB – 72.0 and ITDA – 64.0 during the LPG and pre LPG periods. percent respectively. The entire credit The main institutional sources are sources are reflecting positively when Commercial Banks (CB), Grameen Vikas compared to pre LPG to present LPG Banks (RRB) Primary Agricultural period. Cooperative Societies (PACS) Micro The table – 11 shows the Finance and ITDA etc was observed in availability of non-institutional credit the sample area. Out of 64.0, 52.0, 44.0 facilities of the respondent farmers in the and 38.0 percent of respondents having sample village. The main non- the PACS, ITDA, RRB and CB institutional sources are money lenders, www.ijar.org.in 97 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] commission agents, friends and relatives used the credit source of money lenders, and landlords have been observed. Before commission agents, friends&relatives the LPG period out of, 72.0, 62.0, 56.0 and landlords respectively. and 24.0 percent of respondents have Table – 11 Availability of Non-Institutional Credit Facilities B-LPG A-LPG Non-Institutional Sources Respondents Percentage Respondents Percentage Money Lenders 36 72.0 12 24.0 Commission Agents 31 62.0 22 44.0 Friends& Relatives 28 56.0 10 20.0 Land Lords 12 24.0 2 4.0 Source: Field Study At present 44.0, 24.0, 20.0 and 4.0 sector these are gradually improving percent of respondent farmers are having even in the rural areas, in this regard the the non-institutional credit sources are above table – 12 reveals how the commission agents, money lenders, transport facilities are improved during friends&relatives and landlords the LPG period in the agriculture sector respectively. The entire non-institutional when compared to pre LPG period. The credit source are reflecting the negative main transport facilities are bullock direction during the LPG period when carts; human labour, rickshaw puller compared to pre LPG period. auto trolley and tractor etc have been The transport facilities are very observed from the study. important in the development of any

Table – 12 Availability of Transport Facilities B-LPG A-LPG Transport Facilities Respondents Percentage Respondents Percentage Bullock Carts 48 96.0 12 24.0 Human Labour 28 56.0 10 20.0 Rickshaw puller 12 24.0 00 0.0 Auto Trolley 15 30.0 45 90.0 Tractor 02 4.0 12 24.0 Source: Field Study How these are affected before period the rickshaw pullers are almost and after LPG periods. Before LPG, 96.0, neglected as the mean of transport. 56.0, 30.0, 24.0 and 4.0 percent of Bullock carts human labour are still respondents were used the bullock carts, continue but insignificantly the auto human labour, auto trolley, rickshaw trolley as the transport facility is pullers and tractor respectively. After significantly higher, tractor is also using LPG 90.0 percent respondents are using by 24.0 percent of respondents. There is the auto trolley tractor and bullock carts a progressive trend has been observed in 21.0 percent each and human labour is this aspect. 20.0 percent. During the LPG 25 years of www.ijar.org.in 98 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Marketing facilities are also one in this connection the above table – 13 of the agricultural infrastructural reveals the agricultural marketing facilities. These are directly influenced facilities of the respondent farmers in the the agriculture and village development, sample village. Table – 13 Availability of Marketing Facilities B-LPG A-LPG Marketing Facilities Respondents Percentage Respondents Percentage Local Markets 26 52.0 15 30.0 Commission Agents 22 44.0 28 56.0 Within Village 38 76.0 26 52.0 Nearest Agriculture 15 30.0 39 78.0 Markets Source: Field Study As per the table, before the LPG respondents are in above 56 years those period, 76.0 percent of respondents were are 76.0 percent tot the total sold their agricultural produce within the respondents; majority of the respondents village followed by 52.0 percent have belonging to the BC community i.e, 44.0 used the local markets, 44.0 percent have percent followed by ST, OC and SC approached the commission agents and categories. Out of, 64.0 percent are 30.0 percent had gone through the illiterates 24.0 percent have completed nearest agricultural markets. After the their primary education; hence the first LPG, 78.0, 56.0, 52.0 and 30.0 percent objective is covered. To analyze the respondents reveals that nearest agricultural infrastructural facilities of agriculture market, commission agents, the respondent farmers in pre and post within the village and local markets LPG periods, in this direction the (angadi/santha) respectively. Due to new researcher observed the landholdings, economic reforms the market source of cropping pattern, utilization of nearest agriculture markets are very fertilizers, irrigational sources, credit, close to the farming community, but at transport and marketing facilities the same time 56.0 percent of whatever availability to the selected respondents have sold their agriculture farming community in the sample produce to the commission agents. village. The entire respondents are having the both the occupations of agriculture and non-agriculture but the V. Major Findings: agriculture is the main occupation. In This study uses the primary and the pre LPG period the main secondary data, based on the primary institutional sources are 64.0, 52.0, 44.0 data analysis all the objectives and and 38.0 percent of respondents having hypotheses have been justified and the PACS, ITDA, RRB and CB applicable in the study, the first objective respectively. The entire credit sources is to find out the socio-economic features are reflecting positively when compared of the respondents, in this aspect age, to pre LPG to present LPG period. In social category and education levels have case of non-institutional credit facilities been focused. Majority of the in the pre LPG period out of, 72.0, 62.0,

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56.0 and 24.0 percent of respondents LPG the fertilizers are using enormously have used the credit source of money this is very dangerous to the lenders, commission agents, environment it can be arrested through friends&relatives and landlords bio-chemical fertilizers and at the same respectively. The entire non-institutional time live stock should be improve. The credit sources are reflecting the negative bore-well irrigation is at alarming it direction during the LPG period when should be arrested by adopting the compared to pre LPG period. As the integrated watershed management by mean of transport during the LPG 25 the farming community at gross root years of period the rickshaw pullers are level. The study find out that the non- almost neglected. Bullock carts human institutional credit source are at caution labour are still continue but in the rural areas it should be stop by the insignificantly, the auto trolley is improve the institutional credit amount significantly higher, tractor is also using by the commercial banks. It is sad to say by 24.0 percent of respondents. There is after the 25 years of LPG 56.0 percent of a progressive trend has been observed in agriculture produce sold to the this aspect. Due to new economic commission agents it can be reduced reforms the market source of nearest immediately through the adoption of co- agriculture markets are very close to the operative marketing societies in the rural farming community, but at the same areas. Last but not least the transport time 56.0 percent of respondents have facilities from the field to rural areas, sold their agriculture produce to the rural areas to marketing centres have to commission agents. improve by adopting the Pradanmantri Grama Sadak Yojana. Then only the new VI. Conclusion economic reforms will gives the truth full Based on the far going analysis the results to the development of rural areas study concludes that, illiteracy is at in India. significant level, it should be overcome through the special adult educational References: centres, the mandal level literacy officers 1. Paul Narcyz Rosenstein- have take special interest on adult Rodan (1943) "Problems of education along with the anganwadi Industrialisation of Eastern and teachers at village level. Even today South-Eastern Europe" 54.0 percent of population directly 2. Nurkse, Ragnar. 1953. Problems of depends on agriculture as the result the Capital Formation in average landholding is come down to 2.65 Underdeveloped Countries. acres, there is needed to improve the Oxford: Oxford University Press. non-farm employment in the rural areas. 3. Hirschman, A. (1958): The Strategy To endower the food security, the of Economic Development, New traditional food crops have to grow with Haven, Yale University. application of technological approaches 4. W.W. Rostow, The Stages of Economic why because the traditional food crops Growth: A Non-Communist are gradually diminishing due to LPG Manifesto (Cambridge University affect. The eco-friendly agriculture has to Press, 1960). Pp 4-16. improve to sustain the balanced 5. Myrdal, Gunnar. 1968. Asian agriculture development. During the Drama: An Inquiry into the www.ijar.org.in 100 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Poverty of Nations. New York: 11. Agarwala, A.K and P.L. Hazarika Pantheon. (2002) Regional Disparities in 6. Economic Development of Assam: www.qcin.org/documents/Infrastru A District Level Study Indian cture_Projects/downloadpdf.php?... Journal of Regional Science Vol. Annex1 XXXIV, No. 2. Apr 2, 2008 - This Note compiles 12. Fan, Shenggen and Xiaobo Zhang definition of infrastructure from (2004): How Productive is various reports, Dr. C.Rangarajan Infrastructure? New Approach and Commission's Notion evidence from rural India, of Infrastructure (2001). American Journal of Agricultural 7. Vijay Paul Sharma (2011) India’s Economics, 86 (2): 492-501. Agricultural Development under 13. Ghosh, Buddhadeb and Prabir De the New Economic Regime: Policy (2005): Investigating the linkages Perspective and Strategy for the between infrastructure and 12th Five Year Plan, W.P. No. regional development in India: Era 2011-11-01 November 2011, Indian of Planning to Globalisation, Institute of Management Journal of Asian Economics, Ahmadabad. Vol.15, Issue 6, January 2005, pp. 8. Desai, Bhupat M. and N. V. 1023-1050. Namboodiri (1997), Government 14. Lalli, Salim Ahmed (2007): Expenditure on Agriculture Under Infrastructure and Agricultural Planning Era, in Bhupat M. Desai Development in Haryana-Policy (Ed.), Agricultural Paradigm for Implications, Research India the Ninth Plan under New Publication, New Delhi. Economic Environment, Oxford & 15. Tiwari, A.K. (2010): Infrastructure IBH Publishing Co. Pvt. Ltd., New for Sustainable Rural Delhi. Development, Regal Publication, 9. Sharma, Vijay Paul and Hrima New Delhi. Thaker (2011), Demand for 16. Chakraborty, Debashis and Arup Fertiliser in India: Determinants Guha (2009): ‘Analysing the and Outlook for 2020, W.P. No Village-level Connectivity 2011-04-01, Indian Institute of Scenarario of the States’, Journal Management, Ahmedabad, April of Infrastructural Development I, I: 2011. 1-67 available online 10. Food and Agricultural http://joi.sagepub.com/content/1/1/ Organization, FAOSTAT database. 67. Source: www.fao.org

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Foreign direct investment and MNCs

Mohhmed Ismail Ali, Research Scholar Dept of Commerce and Business Management Kakatiya University, Warangal, Telangana State, India.

L.Mounika, Research Scholar Dept of Commerce and Business Management Kakatiya University, Warangal, Telangana State, India. Introduction the term and concept FDI itself (Agosin & Mayer, 2000). According to IMF, FDI

While the large Multi-National is the category of international Corporations of the West are getting investment that reflects the objective of a advantages of market expansion from resident entity in one obtaining a ‘lasting

FDI, the host countries are also utilizing interest’ and control in an enterprise it as a major mechanism and source for resident in another economy (Bandelji, 2002; Hein, 1992). Few academicians and accelerating their domestic economic growth. Several research works are researchers define FDI as an investment taking place over the years in the field of by foreign corporation in any country. A FDI and the suitability and common example of foreign direct attractiveness of various destinations. investment is a situation in which a There is little doubt on the fact that foreign company comes into a country to while a large company from the US or build or buy a factory. Afterwards they

Europe consider about going into initiate the operation in respective diversified operation across the globe- countries by investing further through recruiting HR and also initiating first thing came into their market is the size of the market. It is always essential manufacturing or distribution. From the for attracting the foreign investors as it definition, itself the sky-high importance of FDI is clearly observable. Not only it is the prime consideration prior to invest their money into foreign countries. When serves the goal of economic development we just talk about size of the market of the host country but also it assists the India becomes the primary name in investors as well in a great way (Jun & mind. One of the most populated and Singh,1996; Lim,1983; Lucas, 1993) huge country of the world and it has a scope of attracting a lot of foreign Importance of FDI from Country investors. This case has become even Perspectives: FDI always brings more intense in modern times as western certain benefits to national economies. It companies feel the pressure of market can contribute to Gross Domestic shrinking down in their home territory. Product, Gross Fixed Capital Formation This paper has been intended towards and balance of payments. There have achieving the same thing to determine been empirical studies indicating a FDI patterns in India. positive link between higher GDP and FDI inflows. FDI can also contribute Literature review: toward debt servicing repayments,

Before interpreting the immense stimulate export markets and produce importance of FDI for countries as well foreign exchange revenue. Foreign direct as for investors it is important to define investment (FDI) is increasingly being

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(Kamath, 1994; Lemoine, 2000). Besides getting advantages of FDI and, the bringing capital, it facilitates the transfer investors are also not far behind in terms of technology, organizational and of their benefits. FDI assist the investing managerial practices and skills as well as company in a number of ways. FDI access to international markets. More enhances the domestic competitiveness, and more countries are striving to create provides the opportunity of taking a favorable climate to attract FDI. In significant advantages of international addition to reducing the restrictions on trade technology, contributes towards the entry of FDI, they are actively increasing of sales and profit, extends liberalizing their FDI regimes. FDI is a sales potentials of the existing products, major source of economic development of maintains cost competitiveness in the developing and under developing domestic market set-up, enhances countries (Lall, 2000; OECD, 2000; possibilities of business expansion, helps Zhang, 2001b). in the process of obtaining global market share, reduce the dependency on existing Objectives markets, and also stabilize seasonal market fluctuations (Oman, 2000; Rajan,  To study most populated and 2005; Rao et al., 1999). The advantages huge country of the world and it has a of FDI have been successfully utilized by scope of attracting a lot of foreign the global pioneer companies in almost investors. every sector. In doing so the companies  To examine has been intended always look for the best possible towards achieving the same thing to destinations where they can put their determine FDI patterns in India. money safely and also those places have  To evaluate of FDI enhances the the highest possibility of generating domestic competitiveness, provides the profits (Sharma, 2000; Smarzynska, opportunity of taking significant 2002). Talking about suitable advantages of international trade destinations for FDI reminds us about India in this 21st century. technology, Why India? Huge Market Size and a Fast-Developing Economy Materials and Methods : The research India is the second largest country in the proposes to use qualitative research tools world just behind China in terms of to empirically support the arguments of population. Currently the total this research paper that successful population is about 1.2 billion. This huge companies in India do value foreign population base automatically makes a direct investment. The researcher has huge market for the business operators adopted the doctrinal method in order to to capture and also a major part of it is study the development of FDI in Indian still can be considered as un-served or context and would further adopt the not yet been penetrated. Therefore, FDI empirical research to find out whether investors automatically get a huge successful companies of MNCs in India market to capture and also ample value social responsibility and standards opportunity to generate cash inflows at of ethics. relatively quicker times. The economy of www.ijar.org.in 103 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

India is also moving at faster pace than (Department of Industrial Policy and most of the economy of Promotion, 2005; Dua & Rasheed, 1998) the world and inhabitants of the country Public Private Partnerships also obtaining purchasing power at the Another significant advantage foreign same rate (Athreye & Kapur, 2001; investors experience in India today is the World Bank, 2004) opportunities of PPP or Public Private Availability of Diversified Partnership in different important Resources and Cheap Labor Force sectors like energy, transportation, The huge advantage every company gets mining, oil industry etc. It is by investing in India is the availability of advantageous in several ways as it has diversified resources. It is a country eliminated the traditional tirade barriers where different kinds of materials and and also joint venture with government technological resources are available. is risk free up to the great extent (GOI, India is a huge country and has forest as 2007; IMF, 2005; Nagaraj, 2003). well as mining and oil reserve as well. These are also coupled with availability IT Revolution and English Literacy of very cheap labor forces at almost every Today the modern India considered being part of the country. From Mumbai, one of the global leaders in IT. India has which is in the west to Bengal which is in developed its IT sectors immensely in the east there is ample opportunity to set last few years and as of today, many up business venture and location and leading firms outsource their IT tasks in most importantly labor is available at India. Because of IT advancement the low cost (Bhandari & Tandon, 2002). firm which will invest in India will get Increasing Improvement of cheap information access and IT Infrastructure capabilities as Indian firms are global A lot of research study in India finds out leader. Along with that Indian youth are that historically the country fails to energetic and very capable in English attract a significant amount of FDI language which is obligatory in modern mainly because of problems in business conduction. This capability infrastructure. But the scenario is gives India an edge over others. Foreign changing. The Indian government has firms also find it profitable and worthy taken huge projects in transportation investment by recruiting Indian HR and energy sectors to improve the case. (GOI, 2006; GOI, 2007; IMF, 2005; Lall, The projects for developing road 2002). Openness towards FDI transport is worth of $90 billion, for rail it has undertaken several projects each Recently the Government of India has worth of $20 million and for ports and liberalized their policies in certain airports the value of development sectors, like Increase in the FDI limits in projects is around $ 80 billion. In different sectors and also made the addition, the investment in energy approval system far easier and accessible. development is worth of $ 167 billion and Unlike the historical tradition, today for investment in nuclear energy investing in India government approval development is outside that calculation. do not require in the special cases of These huge investments are changing investing in various important sectors the investment climate in the country like energy, transportation, and investors will benefit hugely by that telecommunications etc www.ijar.org.in 104 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Commission of India, 2002; World Bank, Regulatory Framework and 2004). Investment Protection Study of FDI Inflows over the In the process of accelerating FDI in the years: country the government of India has India is a compelling investment case, as make the regulatory framework lot more a result of the size of the population and flexible. Now a day’s foreign investors the current relatively low GDP per get different advantages of tax holiday, capita. 431 million Indians have been tax exemptions, exemption of service and elevated from poverty since 1985.It is central taxes. The government also Second largest workforce in the world opened few special economic zones and 467million. India has a whopping 30% investors of those zones also get a lot of share of the addition to the global work befits by investing money. Apart from force between now to 2020. Cumulative that there are number of laws has been FDI inflow amount from 2000 to 2015 is passed and executed for making the of 355 Billion. India ranks at 10th in FDI investments safe and secure for the inflows as per UNCTAD. foreign investors (IMF, 2005; Planning

Present Status Quo: Make in India: Under the Foreign Direct Investments Make in India is an initiative launched (FDI) Scheme, investments can be made by the Government of India to encourage in shares, mandatorily and fully multi-national, as well as national convertible debentures and mandatorily companies to manufacture their products and fully convertible preference in India. It was launched by Prime shares1 of an Indian company by non- Minister Narendra Modi on 25 residents through two routes i.e., September 2014. India emerged, after Automatic and Government Route. The initiation of the program in 2015 as the restrictions have been laid down in top destination globally for foreign direct Annexure A and B in FEMA,1999. investment, surpassing the United States

www.ijar.org.in 105 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] of America as well as the People's Electrical Machinery, Electronic systems, Republic of China. In 2015, India Food Processing, Information received US$63 billion in FDI. Prime Technology and Business Process Minister Narendra Modi launched "Make Management, Leather, Media and in India" on 25 September 2014 in a Entertainment, Mining, Oil and Gas, function at the Vigyan Bhavan.On29 Pharmaceuticals, Ports and Shipping, December 2014, a workshop was Railways, Renewable Energy, Roads and organized by the Department of Highways, Space and astronomy Textiles Industrial Policy and Promotion which and Garments, Thermal Power, Tourism was attended by PM Modi, his cabinet and Hospitality and Wellness ministers and chief secretaries of states Effect of Demonetization on FDI: as well as various industry leaders. The major objective behind the initiative is to This move should focus on job creation and skill improve India's position on transparency enhancement in 25 sectors of the and corruption in the global league table economy. The initiative also aims at high enabling higher capital flow (FDI/FII) quality standards and minimizing the into India. Also, demonetization will impact on the environment. The increase bank's deposits by a huge initiative hopes to attract capital and margin. This will also increase the technological investment in India. In lending activity because banks have a August 2014, the Cabinet of India CRR (cash reserve ratio) to maintain and allowed 49% foreign direct investment with more deposits they can do more (FDI) in the defense sector and 100% in lending. Credit (loans) will become easier railways infrastructure. The defense and interest rates may come down. Thus, sector previously allowed 26% FDI and it will attract more foreign investments FDI was not allowed in railways. This in near future. Further, the move will was in hope of bringing down the probably push down property prices, military imports of India. Earlier, one including land prices as investors will not Indian company would have held the be able to utilize their cash in real estate 51% stake, this was changed so that and thereby forcing builders to sell at multiple companies could hold the 51%. lower prices. Greater transparency in Between September 2014 and November Indian real estate sector will assist in 2015, the government received ₹1.20 improving the country's image and lakh crore (US$18 billion) worth of attract more foreign investments. It's proposals from companies interested in perhaps the most significant move ever manufacturing electronics in India.24.8% taken to curtail the parallel economy. It of smartphones shipped in the country in will give a sharp boost to all formal the April–June quarter of 2015 were channels of payments (a shift from made in India, up from 19.9% the cash economy to cashless digital previous quarter. economy) which in turn will help the formal economy to grow at a faster clip Make in India focuses on the following in the long term. (Neeraj Bhagat & Co.) twenty-five sectors of the economy i.e., Automobiles, Automobile Components, Conclusion: Aviation, Biotechnology, Chemicals, In this hyper competitive and ever Construction, Defense manufacturing changing business environment no www.ijar.org.in 106 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] business organization is certain about markets. Journal of International tomorrow. That forces them to look for Economics, 64, 89-112. new destination and new market to http://dx.doi.org/10.1016/S0022- capture. The emerging market of India 1996(03)00081-3 without any doubt poses suitable choice 5). Department of Industrial Policy and for those companies. Huge population Promotion. (2005). Foreign Direct and huge countryside is certainly making Investment-Policy & Procedures. New those places even more attractive. There Delhi: Government of India. Available at are several benefits in investing in India http://dipp.nic.in/manual/manual_03_05. like-very bright future, cheap labor and pdf. raw materials, sound infrastructure, 6). HMI. (2011). retrieved from huge market availability. Easiness in http://www.hyundai.com/in/en/main/ regulatory framework, efficient human resources, investment protect and also 7). IMF. (2005). India: Selected Issues. efficient promotion mechanisms. There IMF Country Reports No.05/87, IMF, is a significant effect of Demonetization Chapter 3. on currency which enables India as https://factly.in/sectors-fdi-allowed-india/ emerging and attractive destination for 8). Journal of Economics and Sustainable the Foreign Countries.(Neeraj Bhagat & Development www.iiste.org ISSN 2222- Co , Brewer, 1993; Agarwal & 1700 (Paper) ISSN 2222-2855 (Online) Ramaswami, 1992; Lipsey, 2000). 9). Notification No. FEMA 20 /2000-RB References: dated 3rd May 2000 1). Agarwal, S., & Ramaswami, S. N. https://www.rbi.org.in/SCRIPTs/BS_Fem (1992). Choice of foreign market entry aNotifications.aspx?Id=174#ann_b mode: Impact of ownership, location and internalization factors. Journal of 10). Master Circular No. 15/2015-16 International Business Studies, 23, 11- dated July 01, 2015 (Updated up to 19. October 30, 2015) http://dx.doi.org/10.1057/palgrave.jibs.84 https://www.rbi.org.in/SCRIPTs/BS_View 90257 MasCirculardetails.aspx?id=9903#1 2). Agosin, M., & Mayer, R. (2000). Foreign investment in developing 11). Make in India initiative countries: Does it crowd in domestic http://www.makeinindia.com/home investment? Discussion Paper No.146, Ban on 500 and 1000 Currency Notes, UNCTAD, Geneva. how it Effects Foreign Investment in 3). Ahya, C., & Sheth, M. (2006). India India Economics - SEZ Rush: 267 and Count http://www.prnewswire.com/news- in. Morgan Stanley Research Asia- releases/ban-on-500-and-1000-currency- Pacific, 5(7), 23-38. notes-how-it-effects-foreign-investment- 4). Alfaro, L., Chanda, A., Kalemi-Ozcan, in-india-601072946.html#continue-jump S., & Sayek, S. (2004). FDI and economic growth: The role of local financial

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Agrarian crisis in Telangana – The way forward

Dr. Jagan Kanthi, Assistant Professors (P) P.G. College, Secunderabad, Department of Economics Osmania University Hyderabad, Telangana

Abstract : This study presents on Agrarian Crisis in India as well as in the state of Telangana. Agriculture is an important sector of the economy of the country. It provides not only food to the people but also employment above 60 per cent of the population both directly and indirectly. Economic reforms initiated in India during 1991 have put Indian economy on a higher growth trajectory. Annual growth rate in total gross domestic product (GDP) has accelerated from below 6 percent during the initial years of reforms to 7.6 per cent in 2015-2016. Agriculture, which accounted for more than 30 per cent of total GDP in the beginning of reforms failed to maintain its pre-reform growth or keep pace with growth in the non-agricultural sector (chand, 2005). Agriculture is the foundation for economic development. Agrarian crisis was passing through from time to time. However the agrarian crisis is reportedly deepening since the neoliberal policies initiated in the country. This paper particularly on focused on Agriculture farmer’s suicides in Telangana state and agrarian situation. Keywords: Agrarian, Crisis, Unbearable, Perception Introduction of the Gross Domestic Product (GDP-at More than twenty five years of constant prices) in 2012-13 (Economic economic liberalisation had adversely Survey, 2013-14) while it was 15.2 per affected the Indian agriculture. The most cent during the 11th plan period. But, prominent sign of this is in the drastic the role of agricultural sector remains decline in the growth rate of food grains. critical as it accounts for about 54.6 per The rate of growth of agricultural output cent of the employment in the country, was gradually increasing in 1950-1990, (2011 census) apart from being the and it was more than the rate of growth provider of food for the people, fodder for of the population. In the 1980s the livestock and raw materials to industries. agricultural output grew at about four Based on the fact that, the relative per cent per annum. India has attained contribution of agriculture to the GDP self-sufficiency in wheat and rice. But has been declining over time whereas after liberalisation and towards the end there is not much decline in the of the 90’s the rate of growth declined to percentage of people depending on this, it 2 per cent. The rate of growth of could be inferred that the performance of agriculture and allied sectors was just the sector is depressing. In general, the one per cent per annum during the year poor performance of agricultural 2002-05. As a result, per capita production and food production is not a availability of food grains decreased; the healthy sign for the economy. growth rate of population became higher What are farmer suicides? Farmer than that of food grains and India started suicides are a socio-economic to import food grains at a much higher phenomenon. Up until the 1990s, the price than that in the domestic market. government of India did not recognise Further, agriculture (including allied farmer suicides as a social epidemic activities) accounted for only 14 per cent plaguing rural India. Farmer suicides

www.ijar.org.in 108 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] farm suicides are those that occur due to are suggested for the betterment of this crushing debts that farmers agricultural sector. To overcome the hurdles in this labourers incur due to the problems they sector especially the farmers in the rural face in continuing with agriculture low areas should be empowered with credit yield, lack of rains, loans (they take for facilities (Lipishree Das, 2015). All these agricultural up gradation of their land studies covered various aspect of farm) etc. agrarian distress. But the present study Earlier studies on Agrarian distress examine the agrarian crisis in in India Telangana. Objectives of the Study In recent time, identified high incidence of indebtedness among the Specific objectives of the study farmers as the major causative factor for are as follows agrarian distress and it’s resulted in 1. to ascertain the status of farmers’ suicides in India (Charyulu .Y agrarian crisis in India as ,2013). Agriculture sector in India as well as in Telangana gambling in monsoon, in Punjab 2. to analyse the cropping pattern, approximately one suicide is happening economies of agriculture of every day, about 87 per cent of them selected farmers were small farmers and agricultural 3. to study the Agrarian crisis in labourers. Suicides in Punjab are the Telangana, in particularly result of mental stress and this mental the farmers suicides in stress is most often caused by poverty selected sample respondents Methodology and indebtedness’ (Dealluck Irengbam, 2012). The acreage under the transgenic The present study was conducted Bt cotton seeds in India has risen in the agrarian state of Telangana. It will significantly since its legalisation in the focus on the dismal state of agriculture year 2002. On empirical evidence, though in the Warangal district of Telangana limited, brings out the problem of how a state. The state was selected for study as high cost technology could be associated 2/3rd of the farmer suicides have been with higher risks and may be dominated noticed in the Telangana state and by traditional alternatives under certain among which Warangal district has seen conditions. A formidable test of the highest rate of famer suicides in the sustainability of an agricultural state. The district’s agriculture sector technology and its ability to protect has seen some bad times with drought, farmers against downside risks is how it crop failures resulting from pests and fares in the eventuality of crop loss in attack from diseases and the non- worse seasons (Gaurav Sarthak and availability of credits playing their part. Srijit Mishra, 2012). There is a general The primary sources of the data have perception that unbearable burden of been gathered from the families of debt and augmented competitions from deceased farmers from three mandals of imports are indicative of a crisis in the district namely Dharmasagar and Indian agriculture. In this paper an Atmakur and the major observation attempt has been made to find out the focuses on the farmer suicides which trends in agriculture, causes of the crisis, took place during the period of 2014- problems faced by the agriculture sector 2015. Drought and Telangana and at the end some remedial measures www.ijar.org.in 109 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

After a prolonged struggle for six causes for farmer suicides are: decades, the hopes and expectations to Bankruptcy or indebtedness and family achieve a separate state hood for problems, Crop failure. Some of the Telangana region was to cherish Achhe reasons for suicides are mounting debts, Din for agriculture sector, which was increasing costs of cultivation. Subsidies under distress during undivided Andhra are decreasing and costs of inputs are Pradesh. However, an appalling situation increasing with reduced access to means continues, wherein the farmer suicides of production. Environmentally, the soil and severe drought has been haunting conditions are incompatible with the Telangana region till today. cropping patterns, leading to infertility of Telangana is mainly dependent on the soil. Dependence on water intensive rainfall for crop production change in crops is placing high pressure on climate has severe impact on farming; irrigation systems, causing breakdowns. shortage of rains greatly reduces yields Table-1 Big Five States Farmer’s and profitability. The deccan plateau in Suicides general has prolonged dry spells, high States Farmer’s incidences of rainwater run-offs causing Suicides soil erosion. The area receives most of Maharashtra 2568 the rainfall from the south-west Telangana 898 monsoon during June to September. Madhya 836 October to December is dry. Simply put, Pradesh the physical terrain of Telangana region Chattisgarh 443 is such that it needs adequate rainfall in Karnataka 321 order to be agriculturally sustainable. The agrarian make-up of Telangana The farmer suicide phenomenon is Most farmers in the state do not concentrated in five states: Maharashtra, own the land they cultivate. According to Telangana, Karnataka, Chattisgarh and NCRB reports, a majority of those who Madhya Pradesh. Maharashtra has the committed suicide were small and highest incidences, with NCRB pegging marginal farmers. Together, they the number at 2568 in 2014, followed by account for 72.4 percent of total farmer 898 victims from Telangana. 2014 in the suicides. According to the Reserve Bank state government has admitted in the of India, farmers with landholding of up state assembly that 430 famers ended to 1 hectare are considered as marginal, their lives in last 15 months. However, those with more than 1 hectare and less the political parties and non- than 2 hectares are considered small governmental organizations alleged that farmers. Landless agricultural labourers nearly 2000 famers committed suicide (cultivators who take the land on lease), since the separate state came into tenant farmers, oral lessees and share- existence. As per published reports croppers are also defined under this. Why do farmers commit suicide? nearly 34 farmers committed suicide in a single village in the Medak district. A According to the National Crime total of 37,912 farmers committed in Records Bureau, a total of 5,650 farmers Andhra Pradesh and Telangana in the committed suicide in India in 2014, last 20 years. Telangana’s agrarian crisis accounting for 4.3 percent of total suicide is real, with debilitating stories that victims in the country. Two of the major www.ijar.org.in 110 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] underlie these statistics. According to years and the second group between 26 NCRB data, India’s agrarian population and 40 years, the third between 41 and is 48.9 per cent however, this does not 55 years and the fourth between 56 years mean that nearly half of the country's and above. It is observed from Table 5.5 people are farmers, but that over 600 that at the overall level, only 5 per cent million Indians are deployed in a wide of the farmers’ community suicides are variety of related farm activity. below 25 years. About 44 per cent of Agriculture farmer’s suicides in them are in the age group of 41 to 55 telangana. Since 2nd June 2014 to 31st years, while 22 per cent of them are in December 2014 Puts the number at more the age group of 26 – 40 years. than 300 farmer’s suicides. Most of these farmers’ suicides in Warangal (72), Social relations in the villages Karimnagar (38) and Medak (61) Social relations are connected to farmers’ districts. However, all farmer suicides suicides directly or indirectly in addition are related to crop failure, low yield, lack to economic relations. The distress of of rains and indebtedness. Warangal has farmers or suicides may have a chance to the highest farmers suicides in telangan be prevented if people in the village state. Age of the deceased farmers extend their counseling and sympathy etc., to the farmers in distress. The Age plays an important role in tradition of consoling each other in case farming activities. It is generally believed of difficulties is fast disappearing in the that the farmers of middle aged groups villages. People in the villages are are more dynamic and also experienced neither sympathetic nor helping the in taking up farming activities. Age farmers in distress. The table-4 reveals influences thinking of the farmers many the social relation in the selected villages. a time. Usually the younger farmers are In the case of cordial relation percent better- off in understanding the problems 22.13, sympathetic 24.55, helping 28.55, and facing misery and suffering. consoling in case of difficulties 25.75 in However, the middle aged people do not the responded the selected villages. The have adequate mental strength and highest percentage recorded in the case courage to face the losses and sufferings. of helping. Generally, they lose their hope on future. Table-3 describe that the farmers are grouped into four categories. First category consists of farmers below 25

Table-2 Farmers Suicides in Telangan Districts No. of Farmers Suicides Adilabad 35 Mahboob nagar 23 Karimnagar 38 Medak 61 Khammam 10 Nalgonda 37 Warangal 72 Nizamabad 13 RangaReddy 11

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Table-3 Age particulars of the Respondents

Age S. No. Category < 25 56 and Overall 26 - 40 41 - 55 Years above 02 10 10 08 30 1 < 1 acre (6.67) (33.33) (33.33) (26.67) (100.00) 05 24 28 13 70 2 1 - 2.5 acre (7.14) (34.29) (40.00) (18.57) (100.00) 02 12 34 15 63 3 2.5 and above (3.17) (19.05) (53.97) (23.01) (100.00) 09 46 72 36 163 Total (5.52) (28.22) (44.17) (22.09) (100.00) Source: Primary Data. Table-4 Particulars of Social Relations in the Village of Selected Farmers Social Relation in the village S. Consoling Category Cordial Overall No. Sympathetic Helping in case of relation difficulties 12 18 23 20 73 1 < 1 Acre (16.44) (24.66) (31.51) (27.39) (100.00) 1 - 2.5 42 56 62 49 209 2 Acres (20.09) (26.79) (29.67) (23.45) (100.00) 2.5 and 56 48 57 54 215 3 above (26.05) (22.33) (26.51) (25.11) (100.00) 110 122 142 123 497 Total (22.13) (24.55) (28.57) (24.75) (100.00) Source: Primary Data Economics of Selected Crops Table 5 Net Returns from Selected Crops (Amount in RS.)

Crops

S. No. Category Cotton Paddy Maize Total (income) (income) (income) 1 < 1 Acre -155460 -325331 -41906 -522697 2 1 - 2.5 Acres -1212227 -109328 -65357 -1386912 3 2.5 and above -1326490 -59358 -16278 -1402126 Total -2694177 -494017 -123541 -3311735

A detailed enquiry is made into cultivated by the selected farmers. All costs and returns of the important crops the input costs are computed. Cost of

www.ijar.org.in 112 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] cultivation includes costs on inputs, Major causes of farmers’ suicide labour, bullock, machinery etc. Returns The causes of or contributory include the value of main product and factors for farmers’ suicides are also by-product. In cotton there is no presented in the Table below in some value for by-products. The only by- cases. The victims’ family members product is cotton stalks. In paddy and mentioned more than one cause for maize, fodder is the byproduct which has farmers’ suicides. a significant economic value. Table-6 Major Causes of Farmers’ Suicides

S. No. Problems Percentage of farmers %

1 Indebtedness 94 2 Crop loss, crop failure and risk factor 70 3 Input related problems 60 4 Failure of agriculture extension 70 5 Lack of storage and marketing facilities 55 6 Lack of remunerative price 50 7 Absence of agricultural insurance 10 8 Psychological factors 30 Source: Primary Data. Conclusions Role of credit to agriculture cannot be To conclude it can be said that viewed just as a support to food- agricultural sector in India is facing a producing activity but it should focus crisis today. The globalisation process, “need to improve the overall income and which started in the 1990s, is one of the economic well-being of the farmers” as reasons for this crisis. The solution of the agriculture has been the basic requisite problem is not in a few “packages” but in for national sovereignty. So the drastic changes in the present economic arguments that agrarian crisis is fully policies related to agriculture. For this, due to globalization and economic the government should be ready to take policies of the government of India are bold steps. Farmers, agricultural not acceptable. The state governments labourers and people’s organisations in can play active role in initiating civil society should work collectively to economic development and averting the assist and persuade the government to negative effects of globalization. We make the necessary changes. Especially should have good economic policies the farmers in the rural areas, become mitigating the native effects of prosperous and are really empowered, globalization and neo-liberal policies and food processing and preservation, farm- global developments. to-market linkages, agricultural research Reference: and extension, large-scale development of bio-diesel, modernization, mechanization 1. Amol R. Dongre, Pradeep R. and commercialization of agriculture. Deshmukh (2012) Farmers’ suicides in www.ijar.org.in 113 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] the Vidarbha region of Maharashtra 8. DealluckIrengbam (2012) Study of India: a qualitative exploration of their Suicide Victims of Agriculture in Punjab, causes, J Inj Violence Res. Jan; 4(1): 2-6. International Journal of Management & 2. Assadi Muzaffar (1998) Farmers’ Business Studies, Vol. 2, Issue 1, Jan. - Suicides: Signs of Distress in Rural March 2012. Economy, Economic and Political 9. Lipishree Das,(2015) Agricultural Weekly, Vol.3, No.13. Crisis in India: Causes, Consequences 3. Bharathan Geeta (2000) Bt-cotton in and Remedies, International Journal of India: Anatomy of a controversy, Current English Language, Literature and Science, VOL. 79, NO. 8, 25 Humanities, Volume III, Issue X October2000, pp No.1067-1075. December 2015. ISSBN 2321-7065. 4. Chandrasekhara Rao (2005) Total 10. Ratnadip L. Gaikwad (2011), Factor Productivity in Andhra Pradesh “Progress of Primary Agricultural Credit Agriculture, Agricultural Economics Societies in India”, International Research Review, Vol. 18 January-June, Referred Research Journal, vol.3 (34), pp 1-19. 32-34. 5. Chindarkar, Namrata (2007) A 11. Sarthak Gaurav and Srijit Comparative Analysis of Farmers’ Mishra(2012),To Bt or Not to Bt? Risk Suicides in Andhra Pradesh, India, and Uncertainty Considerations in Methodological Innovations Online. 2(2) Technology Assessment, India Gandhi pp 6-19. Institute of Development Research, 6. Damodaran, A (2001) WTO Mumbai, January, pp No1-36. Agriculture Agreement, Common 12. Yadgira Charyulu (2013) Agrarian Property Resources and Income Distress and Farmers Suicides in India, Diversification Strategy, Economic and Book Published by Serials Publications, Political Weekly, September 22nd. New Delhi. 7. Dealluck Irengbam (2012) Study of 13. NCRB Reports, 2014. Suicide Victims of Agriculture in Punjab, 14. Economic survey,2014. International Journal of Management & Business Studies, Vol. 2, Issue 1, Jan. - March 2012.

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Green revolution & modernisation of agriculture

Jaligam Ramesh, Research Scholar, Department of Economics, Kakatiya University, Warangal, Telangana Abstract: Green revolution is a term to an increase to the major increase in an agricultural productivity obtained in developing countries by the introduction of high_yielding, disease resistant seeds. It is applicable to rice wheat in particular. Adequate water supplies and the use of artificial fertilizers have been necessary requirements for the success of policy. in the same developing countries doubled and even triple cropping has become possible of the new seeds. Yields have increased dramatically in some Ares. The Green Revolution spread technologies spread technologies that already but had not been widely implemented outside industrialised nations. These technologies included modern irrigation projects, pesticides, synthetic nitrogen fertilizer and improved crop varieties developed through the conventional science based methods available at the time. Moderenization consists largely of using improved seeds, modern farm machinery such as tractors, harvesters, threshers etc. The period from 1966-67 to1980-81 represents agricultural development, which was marked agriculture by widespread modernization of agriculture coupled with a significant increase in capital invesment.Infect during this period the gross capital formation as a proportion of gross domestic product in agriculture increased sharply to more than 9%from the average level of around 6%observed during the pre-green revolution period. The strategy of modernization agriculture is likely to succeed only to the extent to which the individual farmers actually use modern agricultural inputs. In India, the government adopted the policy of providing a wide range of incentive to the farmers in the specific subsidies on modern agricultural inputs. Keywords: Green Revolution, Agricultural productivity, Irrigation, Agricultural Inputs, modernization, capital investments

Introduction: development of high-yielding varieties of The term Green revolution was first used cerel gains, expansion of irrigation in 1968 b former US Agency for infrastructure ,modernization of international Development (USAID) management techniques,distribution of director William Gaud, who noted the hybridized seeds,synthetic fertilizers,and spread of the new technologies.”These pesticides to farmers. and other developments in the field of agriculture contain the makings of a new The Green revolution in India caused a revolution. it is not a violent Red big change in India taking it forward in Revolution like that of the soviets, nor is the direction of development it faced lots it a white Revolution like that of the problems but it continued and was shah of Iran .I call it the Green successful. The Green Revolution in Revolution”. Norman Borlaug the India was a period when agriculture in “Father of Green Revoluation,”who India increased its yields due to improved received Noble peace prize in agronomic technology. Green Revolution 1970,ceadited with saving over a billion allowed developing countries, like India, people farm starvation, involved the to overcome poor agricultural

www.ijar.org.in 115 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] productivity. It started in India in the benefited the most. Green Revolution early 1960s and led to an increase in the Technology has given birth to growing food grain production, especially in disparities in economic development at Punjab, Haryana and utter Pradesh interred and intra regional levels. it has during the early phase. The main so far affected only 40 percent of total development was higher-yielding verities cropped area and 60 percent is still of wheat, which were developed by many untouched by it. The most affected areas scientists, including American are punjab,Haryana and western Uttar agronomist Dr.Norman Borlaug, Indian Pradesh in the north and A.P.and council of Agricultural Research also tamilnadu in the south. claims credit for enabling the Green Modernization of Agriculture Revolution, in part by developing rust Approach had a negative impact on the resistant strains of wheat. ecological environment and more expensive for small farmers in rural area. Modernization consists largely of using improved seeds, modern Review of Literature farm machinery such as tractors, harvsters, threshers, chemical Fertilizers Bhalla,G.S & Singh(2001) and pesticides in an optimal combination statedthat the introduction of new seed with water modernization of agriculture fertiliser technology during the mid is a process of transforming agriculture 1960’s was a major breakthrough that from traditional Labour-based transformed the rural scenario in agriculture, to technology based india.During the early phase of the green agriculture .it is one of the fundamental revolution the new High Yield- issues in agricultural policies, Variety(HYV) technology was more or particularly in countries, where less confined to pujab,Haryana and some agriculture is less developed. we can see districts in western Uttar Pradesh in that in many countries agriculture is a North-Western India.its introduction sector of economy which keeps a greater brough about some major changes in the distance than remaining sectors from nature and pattern of agricultural modern technological and IT solutions as development in india.There was a big management methods, but also with increase both in the area under regards to the utilisation of the cultivation and the output of these crops institutional settings. The speed and the resulting in acceleration in growth rates scope of the creation and implementation of output in the ares that had adopted of modernisation of farms ensure their the new technology. permanent competitive edge.

The major research problem of Green Revolution is Inter- A study conducted by Singh , H.K.M. Crop imbalances. The effect of Green (1979) highlights that modernization of Revolution is primarly felt on Food agriculture in Punjab has resulted in grains.Aithough all Food grains increased employment per hectare of including wheat,rice,jower,bajra all cultivated area for all kinds of female maize have gained From the green labour. In the case of male labour there revolution, it is wheat which has been was a small decline in the employment www.ijar.org.in 116 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] per hectare in 1980-1981 compared with Methods: The study is based on that in 1970-72 and wider application of secondary data.The secondary data new agricultural strategy has resulted in obtained From various published and reducing the differences in the wages unpublished rates of men and women. Anuva Aaikia Reports,books,Journals,Internet and (1985) studied work participation rate of other sources etc.The data collected from females depend on crop intensity and secondary sources would be economic compulsion to engage in farm scrutinized,tabulated and anaylzed with activities of Jorhat and Sibsagar districs, the help.The prime objective of the Assam.Females worked as casual labour present study is to Green revolution and on the farmers during specific farm Modernization to present the brief operations.The average female work profile about food production and to participation rate was higher on evaluate the crop productions and marginal farms . Dangat and mechanization of Agriculture. Yadav(1985) have discussed the role of women incrop production in Results and Discussion Ahmedanagar district the role of women The area of land under cultivation was in Maharashtra.They observed that the increasedright from 1947.but this was proportion of hired female labour used not enough in meerting with rising on the farm to the total hired human demand.other methods were labour was higher as compared to that of required.yet,the expansion of cultivable family female human labour.This may be land also had to continue.double due to the lower wage rates for the cropping was a primary features of the females than for the males and their Green revolution.The Green Revolution relatively more use on larger farms. The resulted in a record grain output of 131 use of female labour for various farm million tons in 1978-79.This established operations,the operations like stubble india as one of the world’s biggest collection and weeding were exclusively agricultural producers.no other country carried out by the females. Dhongada, in the world which attempted the Green Patil S.D. and Patil S.J. (1985) have Rvolution recorded such level of attempted the nature of participation of success.india also became an exporter of family women labour for the three crop food grains around that time. Yield per regions, namely ,jower regions,namely unit of farmland improved by more than ,jower region,cotton region and 30 percent between 1947 and 1979 when sugarcane region in Maharashtra. The the Green Revolution was considered to participation of family womenlabour in have delivered its good.The crop area size group of holdings .The participation HYV varities grew from 7 percent of total of family women labour in farm activities cultivated to 22 percent of the total is related to the economic development of cultivated area during the 10 years of the the area and the farmers.The Green Revolution .More than 70 percent participation was relatively low wheat crop area, 35 percent of the rice developed sugarcane area and alslo on and 20 percent of the millet and the larger holdings which are financially commercial crop erea ,used the HYV better. seeds. Crop area under high-yield varities needed more water,more fertilizer,more pesticides , fungyicides other www.ijar.org.in 117 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] chemicals.the increase in irrigation Sen, Amertya kumar,dre’eze,jean created need for new dams to harness (1989).Hunger and public monsoon water.india paid backall loans it action.oxford:clarendon press. had taken from the world bank and its affiliates for the purpose of the Green Jain H.k.(2010). Green Revolution.This imoroved india’s credit Revolution:history,impact and worthiness in the eyes of the lending future.Houston:stadium press. agencies.some developed countries Growth and Deversification of ,especially Canada which were facing a Agriculture-Anil kumar shortage in agricultural labour ,were so Thakur,K.b.padmadeo. impressed by the results of india’s Green Indian Agriculture performance & Revolution.that they asked the Indian potential-Arvind government to supply them with farmers Deshpande,S.b.BAPATT. experienced in the methods of the Green Hanumantha rao C.H.-“Growth in Rural Revolution. non farm sector. Vyas, V.S.-“Diversification in Conclusion: Green revolution and Agriculture”. modernization of agriculture influced the Aggarwal,A.N.(1981),”Indian economy and way of life in india to a Agriculture,mittal publication. great extent as is evident fromthe Bardhan,P. (1970) ,”Green Revolution following points.increasing in and Agricutural labourers”. agricultuire production,prosperity of Bhalla,G.S. and G.Singh (2001),Indian farmers,reduction in import of food- agriculture;Four decades of grains,capitalistic farmingrural Development. employment and change in the attitude Dasguptha,B.(1978),Agrarian change and of farmers. the New technology in Wolf laderjinsky has rightly concluded india,UNRISD,Geneva. that “where the ingredients for new “The Green Revolution in technology are available,no farmer India”.U.s.Library of congress .library of denies their effectiveness.The desire for congress country studies.Retrived 2007- better farming methods and a better 10-06. standard of living is growing not only Rowalatt,Justin (2016-12-01).”IR 8;The among the relatively small number of miracle rice which saved million of affluent farmers using the new lives”.BBC News .Retrived 2016-12-05. technology,but also among countless www.google.com farmers still from outside looking on”. Amartya sen .(1981).Poverty and famines:An Essay an Entitlement and References: Deprivation.Oxford university press. Cleverer,Harry (1972).”The Basant Rakesh (1987) :”Agricultural contradictions of the Green Technology and Employment in india:A Revolution”.American Economic Review. survey of Recent research ,”Economic and Political Weekly”. Ruttan,varnon (1997)The Green Satya, paul(1987):”Green Revolution Revolution .International Development and income Distribution among form Review. Families in Haruama, Economic and Political Weekly www.ijar.org.in 118 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Food security in India: concept, realities & innovations

Jangapalli Kiran, Dept. of Education, Kakatiya University, Warangal

Abstract: Nourishment security, when all is said in done, is progressively influenced by worldwide monetary and ecological marvels. Under this, the nourishment costs are influenced because of sustenance shortage which causes social and political unsteadiness, and can heighten compassionate emergency. In this setting it is ideal to concentrate the meaning of nourishment security given by the Rome Declaration on World Food Security at the World Food Summit, held in 1996. The issue of underinvestment in farming similarly as the status of India w.r.t. world is aggravated amid financial turmoil, since when both private and open spending plans contract, speculations have a tendency to be sliced to a more prominent degree than different consumptions in all segments – including agribusiness. In attempting to adapt to the weight of back to back sustenance and financial emergencies certain advances in the territory of bio-nanotechnology would go far in helping nourishment security. Bio- nanotechnology will take farming from the time of hereditarily changed (GM) products to the overcome new universe of molecularly altered life forms. This paper is isolated into three sections and manages calculated survey, substances government measures and at last advancements towards sustenance security. Keywords : Food security, government, nourishment, underinvestment Conceptual Review: preferences for an active and healthy The word Food Security itself has gone lifestyle”. In 2002 again, FAO Expert under severe transition so as to actual Consultation on Food Security gave a Food Security as well. Consider the working definition of food security as, definition of Food Security given by – At “Food security exists when all people, at the World Food Summit 1974 food all times, have physical, social and economic access to sufficient, safe and security is defined as, “Availability at all times of adequate world food supplies of nutritious food which meets their dietary basic foodstuffs to sustain a steady needs and food preferences for an active expansion of food consumption and to and healthy life.” offset fluctuations in production and An FAO report, August 2008, defines prices”. In 1983, FAO - “Ensuring that food security in terms of the following all people at all times have both physical four key aspects: Food Availability and economic access to the basic food that • – Sufficient they need.” World Bank in 1986 – “The availability of food with the nation access by all people at all times to enough through domestic production, net food for an active and healthy life.” In imports (commercial or food aid) and 1996, World Food Summit redefined the carry-over of stocks. Food Access definition of food security as, “food • – Individuals security exists when all people, at all capability to purchase food and to be able times, have physical and economic access to procure food through safety nets or to sufficient, safe and nutritious food to availability. meet their dietary needs and food

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• Food Utilization - flaws in the existing policy and Consumption of food by the household m implementation bottlenecks. To study a proper form. It also takes into account this paradoxical situation a survey was food preparation, storage and utilization, conducted. The findings of the survey food safety, nutritional safety and report reveals that the issue of food dietary balance. security shall be seen as “food insecurity” • Food Vulnerability- and that to the urban part of India. The Vulnerability of the population to food country has got different types of insecurity due to physiological, problems w.r.t. Rural and Urban part. economic, social or political reasons. M.S.Swaminathan Research Foundation and the World Food Programme have Taking this into consideration we are brought out a report on food insecurity now in position to understand the in urban India. The deprivation faced by concern of food security with its households with regard to securing historical perspective and the realities employment as well as access to associated with it. The case of food amenities is the highest for those living security is as important to India as it is in small towns. This finding has an for the rest of the world. The researchers important policy implication that concentration is on the case pertaining to programmes aimed at improving the Indian perspective. The first green living conditions of the urban population, revolution in India began in 1960s. It especially the urban poor. resulted in increasing food grain When families are faced with increased production. It was the combined effort of unemployment, declining wages and high yield seeds, extensive use of reduced demand for their work, they will fertilizers, land reforms and irrigation attempt to maintain income through schemes that resulted in this remarkable migration or participation in new types achievement. Although, it was enough to of economic activity. Alternatively, they feed everybody about 2,200 calories a day will try to smooth consumption through but in the last ten years, India has added selling assets, such as livestock, or 150 million more mouths to feed at the borrowing when access to credit markets same time has increased food production is feasible. They will also alter their by only 15 million tons. spending patterns by decreasing expenditures on durable goods the most INDIA, at present finds itself in the and on food the least. Food expenditures midst of a paradoxical situation: endemic also shift towards calorie-rich, energy- mass-hunger coexisting with the dense foods (e.g. grains) and away from mounting food-grain stocks. The food more expensive protein- and nutrient- grain-stocks available with the rich foods. Government stand at an all time high of Realities – Government measures: 62 million tonnes against an annual requirement of around 20 million tonnes The countries across the globe are seeing for ensuring food security. Still, an their economies slow and recede. No estimated 200 million people are nation is immune and, as usual, it is the underfed and 50 million on the brink of poorest countries – and the poorest starvation, resulting in starvation people – that are suffering the most. As a deaths. The paradox lies in the inherent result of the economic crisis, estimates www.ijar.org.in 120 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] reported in this edition of The State of emerging economies, but it is finding Food Insecurity in the World show that, itself under increasing pressure from for the first time since 1970, more than food security issues. It is also pointed out one billion people – about 100 million that around two-third of the countrys more than last year and around one sixth inhabitants rely on farming as their main of all of humanity are hungry and source of income. The paradoxical undernourished worldwide. The current situation lies here that, though there is crisis is historically unprecedented, with increasing reliance of earnings of Indians several factors converging to make it depends on agriculture as an occupation, damaging to people at risk of food but the picture shows that 21% less land insecurity. This will lead to a vulnerable is under cultivation in during August situation. To understand this there are harvest of 2009 than the same period in factors to be considered- 2008. This is due to a reduction in the First, it overlaps with a food crisis which availability of national water resources pushed the prices of basic staples beyond for agricultural purposes, deforestation the reach of millions of poor people. The and an uneven monsoon in July 2009. price increases had forced many poor The resulting reduction in crop yields is families to sell assets or sacrifice health likely to inject inflationary pressure into care, education or food just to stay afloat. the economy, placing further strain on With their resources stretched to large sections of the populace. These breaking point, those households will conditions, meanwhile, continue to find it difficult to ride out the economic worsen as world food prices increase. storm. Based on direct interviews with people Second, with developing countries today who are most affected by food insecurity, more financially and commercially country case studies conducted by the integrated into the world economy than World Food Programme (WFP) included they were 20 years ago, they are far more in its report give an insight into how exposed to shocks in international households are affected by the fall in markets. This situation will conspire not remittances and other impacts of the only to cull employment opportunities, economic downturn. The case studies but also to reduce the money available also show how governments are for government programmes that are responding to the crisis by investing in indispensable to promoting industrial as agriculture and infrastructure and well as agriculture growth. expanding safety nets. These By now it is a clear-cut indication of interventions will help to save lives and what the food security means? According families, although given the severity of to the Food and Agriculture the crisis, much more needs to be done. Organization at the United Nations, Food security, thus, is a complex issue India has the largest number of poor, affected by a range of factors including food insecure people in the world. agricultural development, capacity, Around 360 million people consume less international trade flows, poverty and than 80% of their minimum energy income distribution, foreign aid, as well requirements, with women, children, the as macroeconomic policies and rural poor, lower-caste, and tribal government programmes on nutrition populations disproportionately affected. and food fortification. Added to these are India may be one of the worlds key www.ijar.org.in 121 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] the impacts of global population growth Every possible move has been and climate change. under Government of India’s scanner. India’s basic initiatives to ensure food The latter is concerned about possible security ranges from concerted efforts to social upheaval, should the masses go boost agricultural production to far- hungry...? The forgoing is not only a ranging market interventions aimed at serious challenge in India but a possible both income and price stabilisation. One threat to China too. Both the countries of the first interventions by the Indian India and China while focusing heavily government was the passing of the on industrialization have not given due Essential Commodities Act in 1955 to attention to food grains production. This protect the poor from the vagaries of the is the time for both the countries to look market. The act conferred on the into the matter more seriously and to government the power to control shift focus from pure industrialization to production, supply and distribution of agriculture too. essential commodities to ensure Innovations towards food security:- equitable distribution of food grains at Science and technology fair prices. innovations have been key factors in With this there are measures introduced achieving advances in agriculture. Plant to improve the access to food of the poor breeding efforts, combined with through public distribution (PD) and improvements in agronomic practices income generating schemes with the have allowed us to keep pace with objective of making basic food grains population growth in terms of providing available to all at affordable prices. The an adequate level of food supply. Still, Government has set up the Food agriculture has to face tremendous Corporation of India (FCI). The basic challenges on many fronts and will have task of the FCI was a two fold activity. to play a critical role in the improvement The first fold was to procure food grains process with Bio-technology for at Minimum Support Prices (MSP) and sustainable agricultural progress. second the fold was to regulate supply so In view of stagnating food grain that prices can be kept constant over a production and increasing consumption period by building a buffer stock. needs of the growing population, the For a bigger harvest in coming years, Government of India launched a different initiatives have to be taken to Centrally-sponsored scheme, the the stagnant agriculture sector. These „National Food Security Mission. Its initiatives are aimed at the working major objective was to increase solutions towards food security problem. productivity of wheat, rice and pulses on This initiative could be three fold: Use a sustainable basis so as to ensure the technology together with newer country’s food security. The cultivation techniques. Water implementation of the NFSM is expected management with harvesting excess to increase rice production by 10 million Monsoon rainwater in the North and tonnes, wheat by eight million tonnes transporting it to the parched West and and pulses by two million tonnes by South. Ensuring a better return to the 2011-12. This is also expected to create farmers. additional employment opportunities.

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The following table shows the Scope and measures: Impact of some of the remedial

Achieving the national objective technology will be critical in productivity of improving productivity of just the improvements, which is dependent on three crops (rice, wheat and pulses) is a input costs, resource availability (soil challenge ahead of us. Use and effective health and water), environmental implementation of existing and new factors, market price and others.

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How Technology Will Help? distribution and handling losses. Also Technology is going to play a major role Indian agriculture is heavily dependent to take the grain production from about on labour, it is not fully mechanized. 210 million tones today to 300 million Although, tractor has become common in tons by 2020 (i.e. 6% increase per year). India to plough the fields, yet further This much food supply is needed to feed mechanization until harvesting is scanty, „the population which by then will be off course it is due to underinvestment in around 1.4 billion mark. Hence agriculture where there is one very basic technology has to become essential part requirement which has to be taken care to deliver higher food grain supply needs. of by providing access to loans at priority Technology will play its role in the rates. Thus, the future of the technology following ways: for increasing demand and shortages or probable shortages can be bridged by the  Agricultural input management, application of newer technology,  Better seeds and cultivation information science and changes techniques. management practices. Conclusion:

Bio-nanotechnology will help In view of the above phenomena the India's food security- Minister for problem of food security seems to be an Food and Agriculture Sharad Pawar said important parameter for economic at New Delhi on Wednesday 19th stability, humanity and as well for September 2009 speaking at the feeding the future of living things. It inaugural session of the three-day Fifth requires threefold activities. Use of safe Knowledge Millennium Summit on „B2B Genetically Modified crops and use of Bio and Nanotechnology organised by better Bio-technological seeds and industry body Assocham that, “Advances pesticides. Rehabilitation of barren land in the area of bio-nanotechnology would into cultivation with the fewer use of go a long way in helping India's food water resources, use of those crops which security, Bio-nanotechnology takes requires less water as a prime source as agriculture from the era of genetically far as India is concerned due to more modified (GM) crops to the brave new pressure of use of water comes from world of atomically modified organisms”. community supply for human beings A farmer has to become a part (even at the cost of production activities). agronomist and a part economist. He has Use of increasing income policies by to depend upon the information age to strategic planning of deployment of know the weather pattern in advance natural resources, availability of finance (prior to planting crop), inputs like and by trade-off of information fertilizers needed for a particular crop, technology through bi-lateral policies pest control schedule to safeguard crop with the help of Government. and maximize advantage from the local References:- irrigation schemes. Once the crop is harvested, the storage and handling losses are to be minimized with careful  Anonymous (2009) Agriculture, planning and good local storage. A Rural Development and Food farmer has to become party to the Security Retrieved From distribution system to prevent mal- www.google.com www.ijar.org.in 124 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

 BS Reporter (2009) High food  Kumbhar V (2009) Food Insecurity security risk in India: global agency in India: Natural or Artificial? retrieved from http://www.business- Retrived from standard.com/india/economy http://www.indianmba.com/Faculty_ Column/FC1075/fc1075.html  Chakravarty, Dand (2006) Food Insecurity in India: Causes and  Liston, B(2008) Nano-foods: The Dimensions. Indian Institute of Next Consumer Scare? Retrieved Management Ahmedabad, Research from and Publication Department. http://www.islamonline.net/Template Retrieved from s/English/HealthScience.htm http://www.iimahd.ernet.in/publicati ons/data/2005-04-01sujoy.pdf  Melaku Ayalew, (2007) Food Security And Famine And Hunger Retrieved  Economic Survey of India, 2008-09 From www.google.com (The Government of India)  Mittal, Sethi (2009) Food Security In  Food and Agriculture Organisation of South Asia: Issues And The United Nations (2009). Statistics Opportunities, Indian Council For Division. Research On International Economic http://faostat.fao.org/default.aspx Relations Working Paper No. 240

 Food And Agriculture Organization  Mkandawire(2007) Achieving Food Of The United Nations Report (2009) Security retrived from The State of Food Insecurity in the http://knowledge.cta.int/en/Dossiers/ World Economic crises: impacts and Demanding-Innovation/Food- lessons learned, retrieved From security/Articles/Achieving Food http://www.fao.org/catalog/inter- Security.mht e.htm  Mukherjee, A (2007) Micro-Level  Goyal, P(2002) Food security in Food Insecurity in Contemporary India, The Hindu, retrieved from India: Perspectives of the Food http://www.hinduonnet.com Insecure Retrieved From www.google.com  http://www.foodsecuritynews.com/  Oswald Quintal (2009) Agriculture  http://www.mssrf.org and Sustainable Development retrieved from www.google.com  Ians (2008) Bio-nanotechnology will help India's food security retrieved  Per Pinstrup-Andersen (2001) from Appropriate Technology For focus http://www.siliconindia.com/news Sustainable Food Security, Journal International Food Policy

 Jamie Kaczor (2008)Food Insecurity Research Institute Retrieved From in India retrieved from Www.Ifpri.Org www.google.com www.ijar.org.in 125 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Food Security in India: Issues and Concerns

Venu Kadivendi, Lecturer in Commerce, Badruka College of Commerce & Arts, Kachiguda, Hyderabad

G. Chinni Krishnudu, Lecturer in Commerce, Badruka College of Commerce & Arts, Kachiguda, Hyderabad

Abstract: Agriculture is the backbone of India. About 60% of rural households depend on agriculture as a source of livelihood. It is also one of the largest contributors to GDP. Thus agriculture not only contributes to overall growth of the economy but also reduces poverty by providing employment and food security to the majority of the population in the country and thus it is the most inclusive growth sectors of the Indian economy. India has made immense progress towards food security. Indian population has tripled, and food-grain production more than quadrupled. There has been a substantial increase in available food-grain per capita. Sustainable growth in Agriculture continues to be core agenda for both the Central and State Governments. As agriculture sector is mainly rain fed and depends to a significant extent on the depleting ground water. This paper focuses on the performance and issues of food security in India.

Introduction: absorption are encompassed in the Food production is the base for food definition ─ security. The internationally accepted (i) Availability refers to the definition of food security is that given physical availability of food stocks in by the Food and Agriculture desired quantities. Using food grains as a Organization of the UN (FAO) in the proxy for food (reasonable enough in a Rome Declaration on World Food context where food grains account for a Security, 1996, further refined in the large share of food intake), availability of FAO’s State of Food Insecurity in the food grain is given by domestic World, 2001. “Food security [is] a production net of feed, seed and wastage situation that exists when all people, at plus net imports plus draw-down of all times, have physical, social and stocks. Physical availability in any economic access to sufficient, safe and location within a nation depends on nutritious food that meets their dietary storage and transport infrastructure and needs and food preferences for an active market integration within the national and healthy life”. territory. Swaminathan (1986) has stressed the (ii) Access need for shifting to the concept of is determined by the 'Nutrition Security', which he has defined bundle of entitlements, related to as “physical, economic and social access people’s initial endowments, what they to balanced diet, clean drinking water, can acquire (especially in terms of environmental hygiene, primary health physical and economic access to food) care and nutritional literacy”. Three and the opportunities open to them to dimensions viz. availability, access and achieve entitlement sets with enough www.ijar.org.in 126 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] food either through their own In India approximately, 320 Indians go to endeavours or through State bed without food every night and recent intervention or both. data is very much alarming and situation is going even worse. Food riots have (iii) Absorption is defined as the taken in many countries of the world. ability to biologically utilize the food It’s becoming very difficult to maintain consumed. This is in turn related most food security. In rural context , crucially to the availability of safe agriculture development for small and drinking water, sanitation, a hygienic marginal farmer is the most important environment, primary healthcare and dimension of food security. The also to nutritional knowledge and diversification of agriculture for food e.g., appropriate practices. cereals, pulses, edible oil yielding, Why food security is needed in vegetable, fuel &, timber yielding plants, medicinal and fodder crops are necessary India? to meet the food and augment income to The International food policy research farmers to meet the food security. institute (IFPR) classified the status of Natural vagaries like excessive rainfall, hunger into five category-low, moderate, drought, and availability of water for serious, alarming and extremely irrigation, undulating topography, soil alarming. India falls into the erosion, and soil type such as degraded category of alarming. The most soil, acidic &alkaline soil affect the food important aspect contributing to this security. The income levels of farmer development is the non availability of families govern the access to food basic requirement of food. It has been affordability. Food distribution is a big observed that the consumption of food, in problem. PDS (Public Distribution terms of nutrition and quantity, is System) is not satisfactorily functioning. lacking far behind. The families very poor within adequate

India’s Food Security Challenges: income cannot escape food crisis. Globalization may and may not help food Food security is the back bone of security. However, there are people who national prosperity and well being. The feels that globalization will definitely health of any nation is directly linked to help food security due to trade but it’s food security. Food security may be matter of debate. We will have to aim at defined as availability of food and access food security in developing countries to it. A family is considered to be food through increased and stabilized food secure when it’s members do not live in production on an economically and hunger or fear of starvation. As per environmentally sustainable definition of FAO- Food Security exists technologies/ methods. Diversification in when all people, at all times, have agriculture is highly required. We cannot physical and economic access to afford to huger, malnutrition and sufficient, safe and nutritious food to famine. meet their dietary needs and food Accordingly, all of us including preferences for an active and healthy life. Government policies seriously need to There is direct relationship between food redesign in order to meet the present consumption levels and poverty. demand and fill the gap of exiting system in order to ensure food security to every www.ijar.org.in 127 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] citizen of the country. While making has branches all across each State, with grain available to all is important, it equipment that can test food safety. An is equally essential to ensure that empowered force of trained food safety all food supplied for consumption personnel should visit eateries, food remains unadulterated and stores, even festival venues where food is uncontaminated. served, and take action where adulteration or contamination is detected Challenge of contamination: through scientific means. The food safety Still, food security, which seeks to end police must have suitable powers starvation, does not abolish food conferred on them under legislative adulteration. Virtually all items of food sanction. There should be an Act that in India have chemicals or adulterants provides statutory instrumentality to added to them, which make them unsafe thus ensure the health of the people. A to various degrees. Therefore, every safety police force operating under the public institution where food is served Health Ministry with powers of seizure is must ensure that what is served is a new concept that will require an chemically safe, nutritionally healthy amendment to the Food Safety Act. and makes for the health of the nation. Policing the process is a fundamental This means an organised system of obligation of the state. inspecting the quality of food offered in The destiny of India is as yet public places. We should be under no uncertain. Jawaharlal Nehru said in a illusion that even godowns where grain is celebrated speech: “The service of India kept for easy distribution have enough means the service of the millions who safety features incorporated in them. suffer. It means the ending of poverty The business of making food appear and ignorance and disease and inequality appealing and attractive often spoils the of opportunity. The ambition of the quality of what we eat. To make the greatest man of our generation has been nation healthy, every citizen must be to wipe every tear from every eye. That able to buy food that is free from may be beyond us but as long as there contamination. This will involve a are tears and suffering, so long our work comprehensive process involving testing will not be over.” facilities or laboratories even in the The Food Safety Bill has a serious villages. We must have a food safety shortcoming, and this must be corrected project that makes what we eat by means of suitable amendments and wholesome. Food security cannot be policy reformation. The prices of guaranteed merely by the provision of a vegetables and other necessary certain quantity of grain to each family commodities for food consumption keep but by ensuring that every grain that is rising and it is still not clear what the distributed is wholesome and nourishing, government is doing to control the trend. and not noxious. The ideology of food Issues faced in India: safety is a composite one, beyond merely In spite of surplus food-grains stock, it is making grain available physically. also a reality that a vast number of Measures Needed: people do not have enough money to feed It is important to have a state- themselves twice a day. sponsored food safety foundation that

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1. Inadequate and improper storage 10. The productivity of land has started facilities for grains, which are often showing a declining trend. Fertilizers, stored outside under tarps that provide pesticides and insecticides, which once little protection from humidity and pests. showed dramatic results, are now being 2 .Insufficient cold storage and cold chain held responsible for reducing fertility of transportation system is a major cause the soil for fruits, vegetables and other perishable products to rot. Food-for-education programme: To 3 . Poor roads and inefficient transport achieve cent per cent literacy, the food systems can cause massive delays. This security need can be productively linked in turn causes decay of temperature to increased enrolment in schools. With sensitive produce. the phasing out of PDS, food coupons 4. Limited reach of Mandis, which are may be issued to poor people depending currently the point of aggregation for on their entitlement. Modified food-for- agricultural produce. This poses work scheme/ direct subsidies: With problems for small farmers who don’t rationalisation of input subsidies and have proper transport facilities at their MSP, the Central Government will be disposal and have to travel and average left with sufficient funds, which may be of 12 km to the closest Mandi. given as grants to each State depending 5 . Multiple layers of middlemen between on the number of poor. The State the farmer and the end consumer, government will in turn distribute the driving up prices and reducing grants to the village bodies, which can bargaining power and price transparency decide on the list of essential for the farmers. These intermediaries infrastructure work the village needs and have led to a cost inflation of ~250% allow every needy villager to contribute (over the cost of production). through his labour and get paid in food 6 . Lack of a well-developed agricultural coupons and cash. banking sector, which forces formers to take loans with high interest from commission agents. Storage & Contract – Overview: The 7. Lack of education and training on new storage function assumes paramount techniques, technologies and agricultural importance in organization such as Food products. Corporation of India because of its 8. There has been a gradual shift from requirement to hold huge inventory of cultivation of food crops to cultivation of foodgrains over a significant period of fruits, vegetables, oil seeds, and crops time. Storage plan of FCI is primarily to which act also as industrial raw meet the storage requirement for holding materials. This had led to the reduction stocks to meet the requirements of in net sown area under cereals, millets Public Distribution System and Other and pulses. Welfare Schemes undertaken by the 9. The use of more and more land for Government of India. New Godowns are construction of factories, ware-houses being constructed by FCI mainly through and shelters has reduced the land under Private Participation under Private cultivation and now fertile land for Entrepreneurs Guarantee Scheme. FCI farming, is no longer available. is also augmenting and modernizing its storage capacity in the form of silos www.ijar.org.in 129 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] through Public Private Partnership. for the last five Years: Storage Capacity for Central Pool Stocks (Fig in Lakh MT) Capacity with Storage Capacity As on Total FCI Other Agencies

01-04-2011 316.10 291.32 607.42

01-04-2012 336.04 341.35 677.39

01-04-2013 377.35 354.28 731.63

01-04-2014 368.90 379.18 748.08

01-04-2015 356.63 352.59 709.22

01-04-2016 357.89 456.95 814.84

Community grain storage banks: operation, people can also be given an The FCI can be gradually dismantled and option to obtain foodgrains against food procurement decentralised through the coupons from the open market, if the creation of food grain banks in each rates in the grain banks are higher, block/ village of the district, from which quality is poor or services are deficient. A people may get subsidised food grains fund can be set up to reimburse the food against food coupons. The food coupons retailers for the presented coupons. This can be numbered serially to avoid frauds. competition will lead to constant The grain storage facilities can be improvement and lower prices. It must created within two years under the also be mandatory to maintain a small existing rural development schemes and buffer stock at the State level, to deal the initial lot of grains can come from the with exigencies. Enhancing agriculture productivity: existing FCI stocks. If culturally acceptable, the possibility of relatively The government, through investments in cheap coarse grains, like bajara and ragi vital agriculture infrastructure, credit and nutritional grains like millets and linkages and encouraging the use of pulses meeting the nutritional needs of latest techniques, motivate each district/ the people can also be explored. This will block to achieve local self-sufficiency in not only enlarge the food basket but also food grain production. However, instead prevent such locally adapted grains from of concentrating only on rice or wheat, becoming extinct. The community can be the food crop with a potential in the area authorised to manage the food banks. must be encouraged. Creation of This decentralised management will necessary infrastructure like irrigation improve the delivery of entitlements, facilities will also simulate private reduce handling and transport costs and investments in agriculture. eliminate corruption, thereby bringing The focus on accelerated food down the issue price substantially. To grains production on a sustainable basis enforce efficiency in grain banks and free trade in grains would help www.ijar.org.in 130 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] create massive employment and reduce achieved by paying higher attention to the incidence of poverty in rural areas. issues such as climate change, integrated This will lead to faster economic growth water management, agricultural pricing, and give purchasing power to the people. inadequate storage capacity, A five-year transitory period may be unsuccessful delivery of public services, allowed while implementing these. Thus, mismanagement of food products and India can achieve food security in the crop insurance. Despite considerable real sense and in a realistic timeframe. effort being made to improve production, Recommendations: not much focus has been given to curb There is a need to shift from the existing food supply chain losses. With over 1.2 expensive, inefficient and corruption billion people to feed, addressing the ridden institutional arrangements to issue of food wastage is essential to those that will ensure cheap delivery of India’s efforts towards combating hunger requisite quality grains in a transparent and improving food security. The impact manner and are self-targeting. Futures of globalization in the form of SEZs and market and free trade: The present other factors has been both positive and system marked by input subsidies and negative in terms of agricultural high MSP should be phased out. To avoid prosperity and there is a strong need to wide fluctuations in prices and prevent regulate the policies related to distress selling by small farmers, futures globalization for reducing its negative market can be encouraged. Improved effects on food security in India. . Limit communication systems through the use global warming, including the promotion of information technology may help of climate- friendly agricultural farmers get a better deal for their production systems and land-use policies produce. Crop insurance schemes can be at a scale to help mitigate climate promoted with government meeting a change. In nutshell, Despite ensuring major part of the insurance premium to ample availability of food, existence of protect the farmers against natural food insecurity at the micro-level in the calamities. To start with, all restrictions country has remained a formidable on food grains regarding inter-State challenge for India. Reference: movement, stocking, exports and institutional credit and trade financing M S Swaminathan Research Foundation should be renounced. Free trade will help (MSSRF), Chennai,India. make-up the difference between Food Corporation of India. production and consumption needs, reduce supply variability, increase efficiency in resource-use and permit production in regions more suited to it.

Conclusion: Global Hunger Index of 2013, India ranked 63rd out of 120 countries and this report is quite disturbing because India is one of the largest producers of food in the world. Overall, it may be concluded that food security in India can be www.ijar.org.in 131 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Education system in Ancient India-An overview

T. Kalpana , Research Scholar, Department of Political Science, OU, Hyderabad Aim of Education: Religion occupied a Introduction prominent place in the Vedic period. The The Education was imparted ancient Indian literature is the vehicle of through religious institutions in the religion. It also had the trend of religious earlier times. The location of the school publicity. Ancient Indian education used to be in and around the place of system also developed on the same line. worship. The prime objective of In India the knowledge was gained to education was to inculcate knowledge of attain salvation (Moksha). Dr. R.K. good life through religion and textbooks Mukerji says, “Learning in India through with religious ideas. Life skills and the ages had been prized and pursued vocations were also introduced in some not for its own sake, if we may so put it, cases. Land grants, gifts, in kind and but for the sake and as a part of religion. cash and charities were provided by It was sought as the means of salvation kings, rulers, noble men and wealthy or self-realization, as the means of viz families to the religious institutions for highest end of life, ., Mukti or the promotion of education. Education Emancipation”. depended upon such gifts rather than on The ultimate air of human society of any political or secular means education that age was the achievement of Absolute being religious in character. It was (Brahma). It is fully pervaded in the limited to the privileged sections while entire visible world. the masters did not have any ways to A man should engage in Karmopasana i.e. reach up to. The education policy during ‘work of worship’ and thus purify his the medieval period used to be according inner senses and gain the ‘Absolute’. The to the whims and families of the ruling soul forgets the ‘Absolute’ due to class. It was individual rather than mass ignorance and illiteracy and so it thinks education. The religious lenders and the itself as one who is neither born or dies institutions had gained upper hand in. and suffers in miseries. The Vedic Our education system is the Education was based on an organized oldest in the world and had some and thought out scheme with a message peculiarities which are not found to humanity. The Form of Education anywhere in the world and we are proud of them even today. Maharishi Manu had Vedic Education is considered as declared the importance of education the main basis for Vedic Education. The some thousands of years ago. Vedic literal meaning of ‘Vedas’ is knowledge. Rishis had spread the knowledge not The word is derived from ‘Vid’ root only in India but they had given the light meaning ‘to know’; thus ‘Veda’ means of the knowledge, acquired by them to the knowledge of various types. the entire world. They brought the Vedas are composed in verse but humanity into light from the darkness of some portion of its written in prose. The ignorance and spread the light of knowledge of Aryan culture is stored in knowledge throughout the world. them.

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It is said that Vedas were not a settled line, so the sound (Dhvani), written in ancient times and they were words (Shabda) and verses (Chhanda) traditionally inherited by disciples and were pronounced in their original form, also by sons from their teachers (Guru) and the practice made them perfectly and fathers. efficient, not only in learning the hymns The four Vedas are Rig Veda, but also in the systematic line of Yajur Veda, Sama Veda and Atharva learning. Veda. To keep the hymns entirely The Method of Education correct the ‘Samhita-path’, ‘Pad-path’, The hymns of Rig Veda show ‘Jay-path’ and ‘Gyan-path’ were that Vedic Education was carried on practiced. Moreover, there are 52 Dhvanis verbally, but there were two methods of (sounds), 13 vowels and 39 Vedic Education: (i) first, the Rig Vedic consonants and the correct hymns were composed, and (ii) second, pronunciation of all these were attained they were preserved. duley. ‘Aitareya Brahmana’ describes the The first was based on the three methods of pronunciation as free inward meditation, which enabled the words, double words, gradual formation of the hymns. The second was pronunciations. based on outward learning method which The general belief of the people enabled the presentation. In Rig Veda in Vedic age was that the incorrect Acharya Guru is called ‘Agnipracheta’ pronunciation of the hymns caused the which means specially learned. sin and destroyed their effect. Vedic hymns were the traditional The word ‘Mantras’ means properties of the various families of the worshipping hymns i.e., the meditation Rishis. They were verbally preserved in helped preservation of the meanings of the families of Vamdeva, Attri, the ‘Mantras’ and development of the Bharadwaja, Vashistha, etc. sound of the disciple. Therefore, the Methods of Teaching disciple tried to understand the sense Undoubtedly, Indian system of and the echo of the scene by meditation education was psychological. Verbal of every word of the hymn and thus education was imparted in such a way realized the spiritual elements and their that it could be preserved four thousands experience. There were such students of years. Mr. K.M. Panikkar in his book were called ‘Shrutdhars’ and the hymn A Survey of Indian History has said, “A says that ‘ I had met such regulated and unique degree of verbal authority has royal life in which they kept their senses been maintained up to this time in the diverted away from worldly attraction form the utterance and the ‘matras’ of and concentrated on the ultimate the sacred texts.” knowledge of Absolute. Thus, they The hymns were learnt realized the real light of spiritual outwardly by remembering and they knowledge. Being enlightened they were realized through meditation and entered the society as the Guru of the realization. Therefore, the ‘Acharya’ people. used to produce the hymns quite In Vedic education, meaningless correctly and the student repeated them. outwardly knowledge has been Side by side their mistakes were also condemned and a person having corrected. As the education was based on meaningless outwardly knowledge has www.ijar.org.in 133 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] been compared with a donkey loaded Vedic age, women were milking the cows, with ‘Chandan wood’. An also, “The too. Thus, it is clear that women were mere crammer of Vedic texts has been given ‘Shastriya’ as well practical condemned as Arvak by the Rigveda”. It education. is true that to maintain the meditation Characteristics of Vedic Education system well the meritorious students The following are the were taught in this system. characteristic of Vedic Education: Similarly there are also evidence 1. Gurukul in Rigveda that many Rishis of Rifveda 2. Idea of Guru were Kshatriyas and Ambreesh. 3. Duties of Shishyas (students) Treaadayu and Aswamedia, etc., 4. Relation between Guru and composer of Aitareya Brahmana, Shishyas. Mahidas was the son of a shudra mother. 5. Education. In short all the four castes were eligible 6. Women Education. for gaining education in Vedic period. Dr. 7. Physical Education. Mukerji says, “The non-Aryans and (1) Gurukul: In those days the wards depressed classes of these days must were sent to ‘Gurukuls’ or the homes have considerable access to Vedic of the ‘Acharayas’ for education, just learning to be able to take part in these after the ‘Upanayan’ ritual. Then scarifies. they were called ‘Anteuasin’ or Women education: According to a ‘Gurukuwasee’. There they led the statement by Dr. Altekar “Home, of life of chastity and purity, served the course, was the main centre of the Acharya and gained knowledge. education of girls in the domestic Naturally such a man acquired many science.” It is true that women were qualifications of the teachers. Only taking part I every ritual with their ‘Brahmacharis’ were allowed in husbands, and this was indeed necessary. ‘Gurukuls’. The ‘Gurkuls’ were fully They used to take part openly in all the free from the Government control rituals and ceremonies. and influence; therefore they If girls, were looked after and continued fulfilling their aims. Dr. education in the same way as the boys A.S. Altekar says, “The ‘Gurukul’ and many amongst them gained highest system which necessitated the stay of education and were called ‘Brahma the student away from his home at Vadini’ and achieved the status of the home of the teacher or in ‘Rishika’. Some of the women were boarding house of ancient Indian regarded as ‘Devis’ and even composed education.” hymns. Apala, Homasha, Shashpati, (2) Ideal of Guru: “Teachers of the Vedic Ghoshal Mamata, Lopamudra were age were men of highest caliber in notable among them. society from the point of knowledge Women were given practical and and spiritual progress. They useful education also as spinning possessed the influence like fire weaving etc., which is mentioned in (Agni) and chivalry like ‘Indra’. ‘Rigveda’ and ‘Atharvaveda’. Word Naturally they maintained general Duhita’ used for daughter is derived reputation. Living in their from ‘Duh’ root and means one who ‘Ashramas’ they always paid milks the cows, too. It shows that in attention to the proper and spiritual www.ijar.org.in 134 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

development of their thoughts. They and logic in general. They specialized in lodging and helped them in need. one subject. Form the view of course of Thus, every responsibility of the study and literature Vedic education qualities of his taught as that he was remarkable. might become higher than himself. Shri T.N. Siquetira says, (3) Shishyas (students): Following were “Education was meant to be a religious, the duties of the students lived in initiation the teacher had to teach the ‘Gurukul’: pupil how to pray, to offer sacrifice, to (a) A student had to do the service of the perform his duties according to his stage ‘Guru’ and necessary jobs of the of life… Indian education was essentially ‘Gurukul’. He had to keep ‘Gurukul’ religious and personal.” Ancient Indian tidy. He also prepared the necessities education was dominated by religious for the rituals (Yajnas) and grazed element, and the course of study were the cows of the ‘Gurus’. mostly related to religious, in the (b) The student had to go out for generation of kindness, forgiveness, animals. perseverance, nobleness etc., in students. (c) Living in ‘Gurukul’, the students They thought that if the students slept on the ground took simple food would learn good habits from the early and obeyed the ‘Guru’ in all respect. life then their feature would be peaceful (d) His main duty was to study and he and happy. For the cultivation of good very gently learnt and attended to habits, regulated daily routine was the instructions of the ‘Guru’. Thus, considered essential and they had to get it is clear that while living in up early in the morning, perform the ‘Gurukul’ he spent the life of an ideal daily rituals, spread the truth, live student, which was simple and well simply and behave properly with regulated. everyone. (4)Relation between ‘Guru’ and The Vedic education system was Shishyas’: In Vedic age, the relations mostly psychological. Verbal and between the Guru and Shishya was just meditative, two systems were encouraged like that of father and son. ‘Guru’ very in that age. The teacher and taught were affectionately looked after his taught”. both careful. Students put forward their He never let them suffer in any way and doubts before the teacher and he tried to always tried for their all round remove them well. Side by side, self development and the students also tried study and meditation was also to satisfy the teacher and so far as encouraged, so that the students might possible did not give any ground for realize the meaning and sense of the displeasure to him. lesson. At completion of education Samavartan In Vedic period education started ritual was performed which in early life. They thought it essential to was more or less like convocation of the begin the education in early age, for the Universities. full development of inner and outer Everyone without distinction of talents of the students. caste or creed was allowed to gain higher The students were caused to education. There is some evidence in learn the four Vedas by heart and side by Vedic literature that some Rishis were side they studied Shiksha Kalpa, born of Shudra mother of father. Vyakaran, Jyotish, Chhanda, Nirukta www.ijar.org.in 135 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

(6) Women education: Women education The following three methods also received proper attention in Vedic existed during this period: age with the result that soon women 1. Shravan (Learning) became even Rishikas. They composed 2. Manan (Meditation), and hymns too. They used to become part in 3. Nidisdyasan (realization and religious rituals. They were also taught experience) practical and useful handicrafts and Practically the students were given households’ duties. verbal lessons and guidance by the (7) Physical education: Though, religious ‘Guru’ and they studied and meditated was the Vedic education, yet useful and over it. Thus, they got them to heart. needful subject for general public were Besides this method, there also not neglected. People could gain the prevailed the question and answer education of various arts and crafts side method in those days. Really speaking it by side. Agriculture, animal husbandry, was during this period that this method etc., also developed well. The Rigveda came in vogue. The disciple (Shishya) mentions about stone built cities. It asked his teacher (Guru) that what is means that these arts were in practical that guiding force that drives the heart use in that age and people were aware of spirit eye and ears into action and it is these sciences. The sea trade was also then that ‘Guru’ delivers a lecture going on in those days and so in Vedic relating to ‘Brahma’ or’ Absolute’. There age education had it international and we find a fine example of question- social form also. answer method. The Aim of Education Agencies of Education-Expansion Branch or Shakha 1. The education enables the 1. - Denotes all realization of true knowledge and the three branches of Vedas. achievement of Absolute 2. Charans- According to Panini (Brahma) only a group of disciples who 2. The education was considered to studied in one brach or,’Shakha’ be a process of inwardly was ‘Charan’ Parishad- meditation and thinking. 3. The word parishad Importance of Guru means all things expanded on all Guru was given much sides. In other words it has been importance during this period. Before used for a conference of learned self-study it is essential to hear from the men. 4. Gotra or Kula- teacher (guru) the spiritual knowledge.It It was based on is indeed, essential to sit at the feet of a family traditions which might be ‘guru’ in order to gain ‘Absolute real or imaginary. Various knowledge’. Upanishads mention about ‘Gotra’ or ‘Kula’ were related to ‘Para-Vidya i.e., physic knowledge. It is ancient ‘Rishis’ Samavartan Instructions considered to be above all the knowledge (Vidyas). This knowledge enables the It means valedictory function. unity of soul and Absolute. During this After completing education and at the period the general duration of study was time when the students were to leave above twelve years. ‘Gurukul’ for their home to enter into Method of Teaching family life, Guru gave those final

www.ijar.org.in 136 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] instructions and advice in order to guide In short the women of Upanishad them in their future life. period were trained in dancing, music, They were: fine arts etc. whereas men were not 1. Always speaking truth interested in these fine arts. 2. Fulfilling duties. Education : Prior to education 3. Never ignoring self-study. ‘Upanayan Ritual’ was performed to the 4. Treating mother as goddess and boys. The word ‘Up-nayan’ means to father as god. bring near the ‘Guru’. In other words the 5. Treating Acharya (teacher) as student (Shishya) was gaining the God. generous shelter and patronage of his 6. Never ignoring Religion. guru. This ritual was performed in three These instructions are like the Torch days. Before the Scared Fire he used to Light guidance for the students. It request the ‘Guru’ (teacher) to make him gives the light which might enlighten ‘Brahmachari’. The ‘Guru’ used to ask the social life of the shishya. certain questions about his caste and

creed and when satisfied, accepted him Education of other Castes: In those as his ‘Shisya’ (disciple) and put his days the domination of Brahmans was on patronizing hand on his head. Teacher-Disciple Relation: the increase in the field of education. The They were mainly authorized for Vedic disciple served his ‘guru’ faithfully and study and spiritual knowledge but some unflinchingly. He discharged his duties ‘Kshtriyas’ had also became great ‘Rishi’ in the ashram for twelve years and and learned philosophers like Janaka etc. during that period he got many In Post-Vedic age no reference is found opportunities to enrich his knowledge about the education of ‘Vaishyas’ and’ and put it into practical use. Sudras’. The former engaged in The teacher treated his disciple cultivation, trade and commerce. The like his own sons and arranged for all duty of the ‘Sudras’ was to serve the facilities needed by the taught-boarding, three highest castes. lodging and clothing etc. The teacher Education of Women : In Post-Vedic would not conceal any knowledge for his period the women were not enjoying the disciple. It is beautifully mentioned in social and educational privileges as they Taittirya Upanishad. Knowledge of did in Vedic age. Neither they could now Absolute was gives to the disciple after a freely participate in social formation nor thorough examination. could they inherit the family property, Duties of disciples: Upanishads but their religious position was quite describe the routine for the disciples safe. They used to participate with their (Shishyas) living in ashrams. Three husbands in all the rituals and were kinds of education, Practical, Mental and authorized to gain higher education and Moral, were included in their daily spiritual knowledge. In the conference routine. organized by Janaka, the famous Practical education had four discussion between Yajnavalkya and main parts as: Gargi is well known even today. Another 1. ‘Bhikshatan’-going out for alms. learned woman was Maitreye on e of the 2. ‘Yajnagni’-enlightened the wives of Yajnavalkya. spiritual light (sacrificial fire) of his mind. www.ijar.org.in 137 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

3. Taming the animals of the 2. K.M. Panikkar “A survey of Ashram. Indian history”, Asia Publishing 4. Cultivation. House; 4th edition (1966) Mental education also had three 3. Mukherji, R. K., 1969. “Ancient stages: Indian Education”. Delhi: Motilal 1. ‘Shravan’ (Hearing), Banarasi Dass. 2. ‘Manan’ (Meditation) and 4. Dr. Altekar “Education in Ancient 3. Nidisdhyasan (Realization). India” Cambridge University Moral education was related to the press, 1934. practice of good behavior. The disciple 5. Altekar. A. S., 1948. Education in had to lead the life of a ‘Brahmachari’ ancient India. Revised and observe certain special practical edition,Banaras: Nanda Kishore & exercise to keep the purity of character. Bros. In those days the disciples were taught 6. Keay, F. E., 1960. Ancient Indian the four Vedas, the Itihas and the Education: An enquiry into its Puranas. Besides they were taught origin, development, and ideas Arithmetic, Godly knowledge, . Astronomy, Spiritualism, Dancing and New Delhi: Cosmo Publications. 7. Altekar A. S., (1965), Education in Singnig etc. Narada knew all these Ancient India things. . Varanasi, Conclusion Nandkishore & Brothers. Today, the importance of education is 8. Mookerji, Radha Kumud, (1947), Ancient Indian Education: greater than ever. In today’s world, Brahamanic and Buddhist, students are learning about the world Delhi, through new technologies and are also Motilal Banarsidass interacting with it. The twenty- first century has placed new importance on understanding cultures other than our own. New technologies are placing distant people only clicks into. The problem in achieving world peace is also fundamentally one of education. Numerous individuals and groups have advocated various proposals for world peace. However, none has succeeded. There References 1. Mukherji, R. K., “Ancient Indian Education: Brahmanical and Buddhist” (1947), reprinted by Motilal Banarsidass (1960).

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Eradication of rural disparities through education

Kantu Sivaiah, G.Saritha, Ch Yashoda Rao and Sk Asha Begum Research scholars, Department of economics, Acharya Nagarjuna University, Guntur Abstract: Education is a key indicator of human development and is included in the commonly used human development index, such as those developed by the UNDP. This index focuses on enrolment at the primary, secondary and tertiary levels. So education is the good indicator of economic development. Present literacy rate in India 74.04%.and India expenditure on education 4% in (GDP),India is 86th place in 106 nations. So we are unhappy in this rank. Actually India literacy rate is 18%very low in 1951 present is 74.04% include both (male and female) 82%and 65% rates respectively. This is main reason of our nation development. Our governments include both (center and state) are initiatives more education schemes and more facilities to education. Because of education is concurrent list. Keywords: Literacy rate, Industrial revolution, women empowerment, social development. Introduction and female) 82%and 65% rates “Education is not the amount of respectively. Education is very ancient information that we put into your brain enterprise. Life is a process of and runs riot there, undigested, all adjustment of interaction between the your life. We must have life building, individual and environment. Education man making, and character making has been defined in different ways assimilation of ideas. If you have according to the social needs of the assimilated five ideas and made them society. it is the development of your life and character, you have more desirable habits, skills and attitudes education than any man who has got by which make an individual a good heart a whole library...”Swami citizen. In the process of education we

Vivekananda try to shape the behavior of young children in accordance with aims and Education is a key indicator of human goals of natural life. Briefly we can development and is included in the define education as shaping or commonly used human development modification of behavior of the index, such as those developed by the individual for adequate for adequate UNDP. This index focuses on adjustment in the society. enrolment at the primary, secondary A right to education has been and tertiary levels. So education is the recognized by some governments. At good indicator of economic the global level; article B of the united development. Present literacy rate in nations1966 international convenient India 74.04%.and India expenditure on on economic, social and cultural rights education 4% in (GDP),India is 86th recognizes the right of every one to an place in 106 nations. So we are education. Although education is unhappy in this rank. Actually India compulsory in most places. Up to a literacy rate is 18%very low in 1951 certain age, attendance at school often present is 74.04% include both (male isn’t and minority of parents chase

www.ijar.org.in 139 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] home schooling. Some times with the seminar volumes also carefully chosen assistance of modern electronic for collection of useful information. educational technology. Education can take place in formal or informal Purposes and Functions: setting. * Acquisition of information about the According to Gandhian models “all the past and present: includes traditional important factors that promote women disciplines such as literature, history, empowerment are education and science, mathematics employment and change in social * Formation of healthy social and structure. All the three components are formal relationships among and equally important and mutually between students, teachers, others. related. Simply development of Efficiency to evaluate information and education of the women would not to predict future outcomes (decision- automatically empower them; the case making), Capability to seek out in point is Kerala. The state has alternative solutions and evaluate hundred percentage (100%) literacy them (problem solving). but the women folk are not even today *Ability to be a good citizen, think free from exploitation. Present India is creatively. Understanding of human main focus on the education; India is relations and motivations. Sense of 86th place in world, among 106 nations well-being: mental and physical health. in investment in education. India is Importance of Education investment in education 4% and 4.8 in Education Empowers Women and GDP11th plan 12th plan respectively. Girls India is investment in 12th plan is Only for women and girls, the economic 453728 cores; include primary and and personal empowerment that secondary and higher education. education provides allows them to make Present government of India launches healthier choices for themselves and so many educational and health their families. Utility of girls’ education programs. include not only the reducing the impact Objectives: of HIV/AIDS, but reduction of poverty,  To Study the Present situation improvement of the health of women and of education. their children, delay of marriage,  To analyze the implementation reduction of female genital cutting, and of education schemes by the increase in self-confidence and decision- government. making power.On average, for a girl in a  To study the impact of women poor country, each additional year of empowerment on education. education beyond grades three or four will lead to 20 percent higher wages and Research Methodology a 10 percent decrease in the risk of her own children dying of preventable causes. The study is based on the secondary Education Contributes to Improving data. The data collected from the Child Survival and Maternal Health recent publications of unpublished and Helps Fight Poverty & doctoral theses and various articles, Economic Growth. journals, edited publications and

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A child born to an educated mother is public education in the Muslim world, more than twice as likely to survive to which is the best way to mitigate the role the age of five as a child born to an of those Madras as that foments uneducated mother. Women with six or extremism. Development alleviates the more years of education are more likely injustice and lack of opportunity that to seek prenatal care, assisted Childbirth, proponents of violence and terrorism and postnatal care, reducing the risk of exploit.” maternal and child mortality and illness. Providing education facilities Education is a prerequisite for short and through government long-term economic growth: No country (SWAYAM), (NDL), The Indian e has achieved continuous and rapid learning platform. The cabinet on 2nd economic growth without at least 40 January 2009 had approved national percent of adults being able to read and mission on education through write. A person’s earnings increase by 10 information communication percent for each year of schooling they technology, a central scheme of MHRD, receive, translating to a one percent to leverage potential of ICT in annual increase in GDP if good quality providing high quality personalized education is offered to the entire and interactive knowledge modules population. over the internet / intranet for all the Education Promotes a Foundation learning in higher education. for Peace Building Institutions in any time and where Education is a critical building block for mode. (Study webs of active learning the development of an inclusive, for young aspiring minds) which will democratic society and must be a central provide are integrated platform and component of U.S. efforts to promote portal for online courses, using global security. Education nourishes information and communication peace. Across society, every year of technology. schooling decreases a male’s chance of engaging in violent conflict by 20 One of the tasks towards “make in percent. The 9/11 Commission Report India” mission would therefore be to stresses the link between strong U.S. significantly improve quality of these leadership against extreme Poverty and colleges, so that its graduates are able creating security: “We should offer an to contribute to a significant extent. All example of moral leadership in the world, kinds of skills need to be developed so committed to treat people humanely, that graduates are ready to participate abide by the rule of law, and be generous fully in research and development and caring to our neighbors. America and (R&D) IPR creation, designing, Muslim friends can agree on respect for developing and testing of products, human dignity and opportunity Former mass manufacturing and U.N. Ambassador Bill Richardson commercializing, MHRD needs to take underscored the importance of education leadership here. (NDL)National digital in fighting Extremism in a 2008 Foreign library launched in April 2005. It is Affairs article: “A crucial effort in building a national asset. fighting terrorism must be support for

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Table-1 Decrease level in gender-gap (in percentage) from (1981-2011)

Economic 1981 1991 2001 2011 Component

Male 56.4 64.1 75.3 82.1* Female 29.8 39.3 53.7 65.5* Literacy rate 43.6 52.2 64.8 74.0* Gender gap 26.6 24.8 21.6 16.7* Increase in the expenditure on education from first five plans (1951- 56) to 12th five year plan. Observe this data; government expenditure is share in GDP is 0.84 percentages in first five year plan and 12th five year plan is 4.8 in GDP. So India is more investment on education because of human resources development. Table-2 Plan expenditure on education from (1951-52, 2012-17) Five year plan Total plan expenditure Percentage in on education(in cores) (GDP) 1ST (1951-56) 153 0.84 2ND (1956-61) 273 1.27 3RD (1961-66) 589 1.52 4TH (1969-74) 786 2.15 5TH (1974-79) 912 2.59 6TH (1980-85) 2043 3.11 7TH (1985-90) 800 3.65 8TH (1992-97) 8522 3.60 9TH (1997-02) 24908 3.92 10TH (2002-07) 28903 3.54 11TH (2007-12) 323849.48cr(A+B) 4.00 12TH(2012-17) 453728cr(A+B) 4.80 NOTE: - (A+B). A=Plan expenditure, B=Non plan expenditure

Present India educational system is rates is decrease. Because of increase very vital role in human development, rural and urban of all categories the and national development process. literacy was increased during the 2001 Example presently India have national to 2012 institutions approximately 237 Role in Health national institutions, according to Maternal Mortality Ratio (MMR), eleventh five year plan. This is the which measures number of women of main indicator of development. Today reproductive age (15–49 years) dying due there are over 20, and NIT s 30, IIITs to maternal causes per 1,00,000 live ISER s and NISERs have come up. births, is a sensitive indicator of the Significant more money has gone in to quality of the health care system. The higher education. During the year 2001 decline in MMR during the 2004–06 to to 2012 Gender inequities in literacy 2007–09 of 5.8 per cent per year (that is,

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254 to 212) has been com-parable to that namely Tamil Nadu (97) and in the preceding period (a fall of 5.5 per Maharashtra (104) have realized MDG cent per year from 301, over 2001–03 to target of 109 in 2007–09, while Andhra 2004–06). MMR of 212 (2007–09) is well Pradesh (134), West Bengal (145), short Of the Eleventh Plan goal of 100. Gujarat (148) and Haryana (153) are in Besides Kerala (81), two more States closer proximity.

Table-3 Gender inequities in literacy rates in percentage Census between (2001- 2011) Content Census 2001 Census 2011 Rural female ST 32.4 46.9 Rural female ST 37.6 52.6 All rural male 46.13 57.9 Rural female Non SC/ST 50.2 61.1 Rural male ST 57.4 66.8 Urban female SC 57.5 68.6 Urban female ST 59.9 70.3 Rural male SC 53.7 72.6 All rural male 74.7 77.1 All urban female 72.8 79.1 Rural male Non SC/ST 74.3 79.9 Urban female non SC/ST 75.5 81.0 Urban male ST 77.8 83.2 Urban male SC 77.9 83.3 All Urban male 86.2 88.8 Urban male non SC/ST 87.6 89.7 Source: - Economic survey (2014-15, 2015-16).

Infant Mortality Rate (IMR), death of a woman during her entire reproductive children before the age of one year per period, fell by 2.8 per cent per annum 1,000 live births, is a sensitive indicator over the 2006–10 period from 2.8 to 4 of the health and nutritional status of Twelfth Five Year Plan2.5, which is population. IMR fell by 5 per cent per faster than the decline of 2 per cent per year over the 2006–11 periods, an year in the preceding five years, but improvement over the 3 per cent decline short of the Eleventh Plan goal of 2.1. per year in the preceding five years, but Replacement level TFR, namely 2.1, has short of the target of 28. The decline in been attained by nine states. Low couple IMR has accelerated, but is short of the protection rate (40.4 per cent Family required pace. While seven states have Welfare Statistics in India, 2011) and a achieved the target, IMR is still high in high unmet need for contraception (20.5 MP, Odessa, UP, Assam, and Rajasthan. per cent) in 2007–08 point to gaps in Total Fertility Rate (TFR), which service delivery. measures the number of children born to

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On the goal of raising child sex ratio, be committed to research and also to there has been a reversal. All States and scholarships to promote equity and UTs except Punjab, Haryana, Himachal merit. Pradesh, Gujarat, Tamil Nadu, Mizoram, Schooling is an investment in Andaman and Nicobar Islands and extending human potentials in Chandigarh have witnessed a decrease in promoting the standard to expand on the child sex ratio (0–6 years) in the human achievement towards an 2001–11 decade. improvement of the quality of life so, Suggestions & conclusions technological investments would have The male dominated society has to to improve our capacities to serve these change their attitude to accept their goals. And maintain the good freedom of women counterpart. Gender administration in human resources disparities and regional disparities development. So we are all will removed by the government thinking for bright future administration policies, because of need women empowerment to our References nation. To make them more aware 1 Hirsch, E. D. Jr. (1987). about the reservation policy of the Cultural Literacy. Houghton Mifflin. girls. To give awareness programmed 2 Callaway, R. (1979) Teachers’ of Govt. Schemes on education. And Beliefs Concerning Values and the provide the facilities to learning the Functions and Purposes of education. To more investment Schooling, Eric Document (expenditure on education and health) Reproduction Service No. ED 177 -110. in human resources development. 3. The Indian economic journal Employment opportunities should be (2015) December, special issue. generated for educated persons by the 4. D.Himabindu and Amie government. To promote quality and Miriam Mathews “causality between standards in education, substantial primary and secondary education and resources to be allocated to teacher economic growth in India for the training, teaching learning, material period 1990-2013”. (The Indian including traditional well as modern economic journal (2015) December, technology based equipment, libraries special issue .Page no-123-130. laboratories and quality research in 5. Indian economic survey (2014- universities and other intuitions of 15, 2015-16). higher education. Reasonable 6. Journal of results education proportions of the budgetary fund. Washing ton. allocations to higher education need to

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Health Insurance as a Basic Social Need of Citizen in the Regime of Patent Era: A Study

Dr. Kavyashree. N, Asst. Prof. of Law, Government Law College, Kolar Karnataka

Introduction the harmonization of intellectual In this competitive world Creativity and property rights and opportunities, to innovation are in the forefront, driving secure stronger protection for these economy, development, growth and rights, new statutes were added at progress in all the knowledge based International level. economies. Intellectual property protects The questions about the impact on applications of ideas and information prospects for economic growth in the that are of commercial value. This is field of health insurance as a social growing in importance to the advanced development process, in the era of patent industrial countries in particular, as the regime requires a new strategy to be exploitable ideas becomes more included in the health insurance for the sophisticated and as their hopes for a human development in the developing successful economic future come to country like India. Intellectual Property Rights depend increasingly upon their superior subject matter of new knowledge. Intellectual property rights can have Intellectual property rights are tools for multiple impacts on the capabilities of economic development that should societies for socio-economic development contribute to the enrichment of society. through innovation and adaptation and Insurance is a means of social beneficial more creativity and growth leading to schemes adopted universally in order to competition and regulation, good save the victims in the sudden exposure education, public health and access to to the distress situation. The knowledge Constitution of India not only gives rules The International frame work of and regulations controlling the powers of legislative and administrative assistance the government, they also give powers to to developing countries has been the government for pursuing collective strengthened by the agreement on trade benefits to the individual of the society. related Aspects of intellectual property It also gives fundamental identity to its rights (TRIPS) administered by the entire citizens. A social right which is an world trade organization (WTO) in exclusive right is also enshrined for the cooperation with WIPO. Developing individual development in the course of countries which are member states of economic progress of the nation.Legal WTO were given different periods of time framework was also evolved in such a to adapt their intellectual property manner for each type of subject matter of systems before being obliged to apply the intellectual property to balance both TRIPS Agreement.1 social interests of the society as a whole and in its economic, cultural and social development and to secure a fair value 1WIPO’s intellectual property handbook: for one’s individual efforts and policy law and use, Third chapter, the investment of capital and labour. With role of intellectual property in www.ijar.org.in 145 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Any discussion on Indian jurisprudence pharmaceuticals and chemicals.4 The in the area of economic and social rights nature or major characteristic and the has to begin with the constitution. The impact of the agreement can therefore be constitution of India in its preamble summarized as “harmonization of reflects to resolve to secure to all its national intellectual property regulation”, citizens justice social economic and because the TRIPs Agreement implicitly political, liberty of thought expression, considers harmonization as a norm for belief, faith and worship and equality of the WTO agenda. In effect, national status and of opportunity.it is true that intellectual property systems had to be the constitution reflects the dreams and adapted to the specific provisions. aspirations of the concerned society. It is Technology is advancing faster than ever also kept in the mind that the before and developing countries that fail constitution is a framework for the to build capabilities enabling them to democratic governance of the society. participate in the evolving global Hence, it is an instrument that societies networks of knowledge creation risk create forthemselves.2 falling further behind in terms of The International environment with competitiveness as well as economic and respect to intellectual property has social development. Prices of medicines changed considerably with the conclusion and loss of consumer welfare .After the of the TRIPS Agreement. The TRIPS introduction of product patents and its Agreement accommodates the demands effect, on prices of medicines have of the industrialized countries for higher simulated welfare losses for consumers International standards of protection by in developing countries. In china, after mandating the extension of patentability, the introduction of product patents in virtually to all fields of technology 1993 prices of drugs was increased.5 In recognized in developed countries patent developing countries like Argentina , systems, by prolonging the patent Brazil, India, Mexico, Korea and Taiwan protection for a uniform term of twenty etc. finds the welfare losses from years and by providing, legal recognition introduction of product patent would of the patentee’s exclusive rights to range between$ 2.9 billion on to 14.4 $ import the patented products.3 All the billion. The gains to the patent owners signatories to the trade negotiations are from such introduction of product therefore, obliged to harmonize their IPR patents stated to be between US $ 3.5 regime and to product patents for billion to $ 10.8 billion. The welfare loss to India could be around 14 billion to 4.2 billion in a year.6 This development and WIPO’s development programs, http://www.wipo.org 4I bid , page38 2 Constitution as a living document, 5Lanjouw, Jean O ‘the introduction of chapter 9, NCERT BOOKS publications pharmaceutical product patents in India: 3Nageshkumar , IPR, Technology and Heartless exploitation of the poor and Economic Development ; Experiences of suffering’’? NBER Working Paper Series Asian countries, study paper lb , No. 6366, national bureau of economic Commission of IPR, New Delhi available research, January , ( 1998) at www.iprcommission 6.WatalJayashree, pharmaceutical patents, prices and welfare loss: Policy www.ijar.org.in 146 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] trend is likely to increase pharmaceutical Intellectual property rights could play a prices and bring down welfare measures significant role in encouraging in India. With these, product patents innovation, product development, and drug price in India could increase around technical change. Developing countries 26% to 42%.7 Another study also reveals tend to have IPRS systems that favour that maximum price increase of 67% for information diffusion through low-cost India following the product patents.8 imitation of foreign products and Introduction of product patents would technologies. Inadequate IPRS could affect prices of medicines significantly stifle technical change even at low levels and unless new drugs are more efficient, of economic development. This is there will be decline in the health levels because much invention and product of population.9 Recently in south Africa, innovation are aimed at local markets it was noticed a case of huge difference and could benefit from domestic between prices of HIV AIDS drugs sold protection of patents, utility models, and by patent holders, and their generic trade secrets. In the vast majority of substitutes, just provides further cases, invention involves minor evidence to the potential of price adaptations of existing technologies and increases following the introduction of products. product patents and at the same time, it The introduction of product patents for may be argued that the vast majority of pharmaceutical inventions and the drugs are out of patent protection and consequent threat to an Internationally hence will not be affected.10 renowned generic industry that has thus far ensured the supply of affordable drugs spurred widespread protests, both option for India under the WTO TRIPS nationally and Internationally, to an Agreement ,The world economy, Vol 23 extent never before witnessed in the no page no. 733-752 annals of intellectual property law 7Ibid making in India. The result is an Act 8. Subramanian A, ‘Putting Some that attempts to balance the competing Numbers on the TRIPs pharmaceutical interests of a variety of stakeholders, debate’, International Journal of including domestic generic medicine Technology Management, page no. 9, producers, the domestic research and 1994 Vol .X , NoX 1994 development community, foreign multinational pharmaceutical companies, 9May Christopher, A global political civil society groups concerned with access economy of intellectual property rights: to medicines and intellectual Property 11 the New enclosures? London and lawyers. Reason behind this strategy of NewYorkRoutledge published in 2000. denying product patent protection to Its brief discussion is available at the global political of intellectual property 11F.M. Abbott, Beginning of a New Policy Chapter: A Hopeful Way Forward in rights in the new millennium, Published in July 22 2009 by E – international Addressing relations available at http; www er-irnfo Public Health Needs, FIN. EXPRESS, ,accessed on 25thjan 2015 evining 4oclock Apr. 6, 2005, . http://www.financialexpress.com/ 10 See supra note 7, page no 40 fe_full_story.php?content_id=87112 www.ijar.org.in 147 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] pharmaceutical inventions is traceable to other laws tocurb a sharp rise in drug the Ayyangar Committee Report, a prices.14 report that formed the very basis of the Patents Act, 1970.12 The Committee Introduction of product patent would found that foreigners held between disturb the pharmaceutical industry eighty and ninety per cent of Indian structure and adversely affect consumer patents and that more than ninety per welfare through higher drug prices, with cent of these patents were not even adverse consequences for the health and worked in India. The Committee well-being of citizens, the basis of their concluded that the system was being view is that the countries such as India exploited by multinationals to achieve where health insurance coverage is so monopolistic control over the market, rare, almost all medical-expenses are met especially in relation to vital industries out of pocket and any change in the such as food, chemicals and demand structure could have significant pharmaceuticals. Medicines were impact on the poor. The Drugs have arguably unaffordable to the general become expensive and beyond the reach public and the drug price index was of the common man due to heavy rising rapidly. The Committee therefore royalties being charged by the patent recommended that certain inventions holder of such drugs15. The market is such as pharmaceutical inventions, food dominated majorly by branded generics and other chemical inventions be granted which constitutes of nearly 70% to 80% only process patent protection. The of market. The IPM is valued at Rs 750 multinational pharmaceutical industry, billion for the year ending March on the other hand, argues that such 2014.The growth in 2014 was subdued at patents are essential to encourage 6% vs. 12% in 2013. The growth was innovation and help the transition of impacted as the drug price control order domestic pharmaceutical companies from (DPCO) issued notice to bring 348 drugs copycat generics to innovative R&D under price control. Despite this, the companies.13They argue that this will Indian pharma market remains one of serve India’s interests better in the long the fastest growing pharma markets in run and that there are adequate the world. Currently the IPM is third safeguards in the patent regime and largest in terms of volume and thirteen largest in terms of value. 16

In India, some of the multinational pharmaceutical companies are focusing 12Discussed in detail in 3rd chapter 13Patent protection for pharmaceutical 14Shamnad Basher, India’s tryst with products will provide India’s scientists TRIPS: The patent ( Amendment) Act, with incentives 2005, the Indian journal of law and to discover and develop new life-saving technology, vol1,2005, page 19 drugs. See PHARMA, PhRMA Welcomes 15 J.K Bagchi( IAS) Retd ,Intellectual Passage of property global and Indian dimension by, Patent Bill in India, at Manas Publications http://www.phrma.org/mediaroom/press/r 16 Available at www.equitymaster.com eleases/23.03.2005.1157.cfm www.ijar.org.in 148 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] on increasing the quantity and quality of undergoing major changes globally, the FDI in the areas of pharmaceutical R&D Indian patent laws are consolidated, and manufacturing. However, in the more specifically in the field of short run, product patents in India may pharmaceuticals. Pharmaceutical firms be less harmful. But, in future, it may be operating in India will give up to the sever because of many off-patented competitive pressure imminent in the therapeutic equivalents are accessible to product patent era. Stimulating the the Indian consumer and only around 3 desired research and development per cent of the drugs marketed in India actively among the Indian are patented.17 pharmaceuticals sector will not only strengthen the industrial base but also In the broad sense social development is fuel research about certain diseases. about putting people at the centre of India should adopt a policy of legislative development efforts. Development must modalities to encourage industrial be sustainable as much in social as in activity rather than controlling them. economic and environmental terms. The While at the macro level, the government World Bank has built its social should support and provide facilities for development strategy based on its corporation whether in the national or experience and principles that emerge multinational sector should develop their from its operational work. Inclusive own strengths. It also supports for huge growth, cohesive societies with investment from MNCs for growth of accountable institutions are better able these MNCs. to sustain development. Here it has meant inclusiveness as societies promote more access to opportunities.18 The The Government of India has unveiled enjoyment of the highest attainable 'Pharma Vision 2020' aimed at making standard of health as a fundamental India a global leader in end-to-end drug right of every human being without manufacture. It has reduced approval distinction of race, religion. Political time for new facilities to boost belief, economic or social condition was investments. Further, the government enshrined in WHO’s Constitution long has also put in place mechanisms such as ago. the Drug Price Control Order and the National Pharmaceutical Pricing While the intellectual property practices Authority to address the issue of including patent laws and practices are affordability and availability of medicines. The Health& Insurance Policies 17Panchal s(patents era: how will pharma firms cope,(2005), retrieved from Health insurance relates to a type of www.rediff.com insurance that essentially covers your 18 The world bank and the Copenhagen medical expenses. It is a contract declaration: ten years after, September between insurer and an individual/ group 20,2004, social development department in which the insurer agrees to provide environmentally and socially sustainably specified health insurance cover a network, document of the world bank particular “premium” subject to terms available at www.worldbank.org accessed and conditions specified in the policy. on October 3rd, 2016 Normally it covers expenses reasonably www.ijar.org.in 149 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] and necessarily incurred under the buying health insurance protects us from following heads in respect of each the sudden, unexpected costs of insured person. hospitalization (or other covered health Health insurance policies may offer events, like critical illness) which would cumulative bonus wherein for every otherwise make a major dent into claim free year, the sum insured in household savings or even lead to increased by a certain percentage at the indebtedness. Each of us is exposed to time of renewal subject to a maximum various health hazards and a medical percentage. Generally 50%, in case of a claim and necessity of insurance is felt claim cumulative bonus will be reduced for all in this high cost of living life. by 10% at the next renewal. These health Government of India looks to provide policies may also contain a provision for quality affordable healthcare services to reimbursement of cost of health check- all its population through integrate multi up. It also imposes conditions to claim sectoral participation, national health the benefits. Pre and post hospitalization accounts in India. expenses are also covered under the The Indian health system continues to medical insurance. This is worth for the evolve in response to changing people because it is cashless facility, as demographics and disease patterns, rapid insurance companies have tie up technological advances, complex arrangements with a network of financing and delivery mechanisms. To hospitals in the country. Policy holder’s attain this rapid change with common takes treatment in any of the network health system goals of equity, efficiency hospitals; there is no need for the and effectiveness of care, information on insured person to pay hospital bills. The health system is of prime importance. At insurance company through its the global experience , both in highly thirdadministrator (Third Party industrialized countries as well as in low Administrator) will arrange direct and middle -income economies clearly payment to the hospital. There is also demonstrate the importance of achieving another provision where in non-listed universal coverage through either a hospital cases, insurer first pay bill and purely tax based regime or social health then can get reimbursed from insurance insurance mechanisms or a mix of company. both.since, 1950s, the penetration of Sometime additional benefits and other health insurance remained low for the stand-alone policies like “add-ons” or next decades, and India has launched riders, hospital cash, critical illness ESIS in 1952 and central government benefits and etc. a few companies have health scheme(CGHS) in 1954. As, the come out with products in the nature of most of the people of the country uses top-up policies to meet the actual medicines on the prescriptions of doctor expenses, over and above the limit and pharmaceuticals had a great available in the basic health policy.These fluctuation after patent amendment act health insurance policies are not issued 2005 and to save the people from both for less than one year period.19. The these pharmaceutical companies and

19 Handbook on health insurance,insurance regulatory and at www.irda.gov.in, accessed on October development authority,IRDA,available 4th www.ijar.org.in 150 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] doctors wishes, insurance is the need of consonance with the social security, the hour. unlike other countries. Constitution and Right to Health Constitution of India being source of all laws, civil, political, social and economic rights to the people of India. Social and economic rights are termed as the building blocks of a coveted society.Every human being is entitled to the enjoyment of the highest attainable standard of health conducive to living a life in dignity.20 It is the duty of the state to not only provide for the maintenance of life but also for the maintenance of dignified life.21 The right to health in broader connotation refers to all the three kind of rights. It relates to civil and political rights in relation to the protection provided to respect physical integrity. It relates to social and economic right to the extent it seeks to safeguard that the individual does not suffer social and economic injustices with respect to his health. It is cultural in nature because it seeks to safeguard that the individual’s health services are sufficiently adapted to one’s cultural background.

Conclusion Health and Its guarantee under the constitution are the basic need in a civil society.Innovation and development is also need of the hour and without health there are no life and liberty explored. Hence government should take all such measures with regard to insurance for all its citizens as a matter of social security at reasonable expenses. The health insurance policy should cover all the citizen of the country irrespective registered or unregistered and to act in

20General comment no.14, UN Doc. E/C12/2004/4 21Maneka Gandhi v/s union of India, AIR 1978 SC 597 www.ijar.org.in 151 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Agriculture Condition and Causes to the Farmers’ Distress in India

K. Kiran Kumar, Research Scholar, School of Economics, University of Hyderabad

Abstract: In spite of India making rapid progress in the Agricultural Sector since post-independence, especially after the Green Revolution of the 1960s, the country has been able to achieve an overall sufficient supply of food grains to its population of more than 1 billion, but still inadequacies of serious long-term concern are even now obvious. Over the years, growth in agriculture has not been inclusive in the policy planning priorities. Approximately, 85 percent of the marginal and small farmers hold 44 percent of land over the country. In the recent years, small, marginal and tenant farmers are in a big crisis. Among these farmers, there are pure landless tenant farmers and sharecroppers, these farmers are leasing the land for cultivation from the big landlords. This is the condition of the nation’s farmers who are neither feeding their family nor eating substantially for themselves from their cultivated produce in their fields, but these honorable nation farmers are unhesitatingly providing the food for the remaining country population without a deficit though they are unable to cultivate up to a mark of a profitable surplus or beyond. But, now they have begun committing suicides without blaming any government policy measures and any responsible official in person. Present study mainly based on the secondary data. It is mainly focused on to study the conditions of the marginal, small and tenant farmers and their problems, and reasons for leading to their suicides.

Introduction: systems land owned by the big landlords Agriculture has persisted as a dominant or zamindars(middle men) lent their sector, contributing employment and lands on lease and collected the rent from subsistence to a large number of Indian the small and tenant farmers, in which households. Nearly 47 percent of the farmers were impoverished and people in India are involved with inhumanly subjected to atrocities and agriculture and related sectors to a lesser other abject problems,when they failed to or greater extent either as cultivators of pay the rent. Mostly the farmers at that self-owned land, landowners who employ time had forcefully cultivated the cash wage labourers, sharecroppers, landless crops under the order of landlords and farm laborers, tenants (land leased in) or British officers irrespective of their in other ways. It is a matter of serious interests’. Due to this at the time of the concern in the entire country, that independence India has been faced with a farmers are facing difficulties and also lot of serious problems which were food crisis situation. If observed, the situation insecurity, lack of land to the most of the before independence, Indian agriculture people, less productivity. To annihilate was mainly determined and controlled by these problems Indian government had the British India through the different implemented the land reforms all over the land tax systems and reforms which were country through the various means, which Zamindari, Ryotwari, and Mahalwari. In were abolition of zamindari system, the the Zamindari and Mahalwari land distribution of the surplus land to landless www.ijar.org.in 152 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] people, tenancy protection, and agriculture. Despite a steady decline in consolidation of holdings with the aim of their contributions of agricultural share increasing the production and to the national income and also of their productivity, reduce the inequalities in marginal inclusion in domestic produce on the land holdings and other allocations. the whole. Due to an oncoming dearth in But government has failedto fulfill, resources allocated, there has been a steep especially again farmers facing problems rise in shortage of employment afterword at the time of Green Revolution opportunities in the non-farming sectors and economic reforms. Green revolution like industry, manufacturing and services, has been functional successfully in the lead to increase in labor force wheat producing areas, but the new rice employments on agricultural land, which has not been successful. It increased the are leading to the increase in the quantity regional disparities. The majority of small of small and marginal operational land and marginal farmers, farming the holdings in agriculture. Table (1) shows agriculture crop land were not benefitted that over the time period spanning from as much as the rich farmers 2000-01 to 2010-11 all over India steady (A.kChakravarti 1973). The deformation increases in the number of operational in it led the farmers into the critical land holdings recorded from 119.931 situation and since the prevailing safety million holdings to 138.348 million net programs are unable to help or reach holdings and but operated area recoded as out to them (Deshpande et.al 2005).Some 159.436 million hectares to 159.592 of the previous studies, explained their million hectares. The increase in operated view on farmers’ suicides in which area has not been much as the increase in indebtedness is stated as one of the operational holdings. Average size of reasons for farmers’ suicides in India holdings also decreasing from 1.33 (Revathi 1998, Deshpande 2002).It is a hectares to 1.15 hectares. Observing the widely acknowledged and accepted fact, in size of operational holdings in 2010-11, the economic literature that a successful the marginal and small operational structural transformation is painful for holdings and operated area has increased agriculture in all societies, hence nearly from 81 percent to 85 percent and 38.9 all rich countries protect their farmers at percent of area to 44.9 percent area.85 the expense of domestic consumers and percent of the marginal and small taxpayers and of foreign producers operational holdings are controlled by (Timmer 1988). Lack of the institutional 44.9 percent of the operated area. 15 credit, small and marginal Farmers were percent of the semi-medium, medium and forced to borrow from the brokers. large operational holdings controlling the Wherein they had to pay an interest 65 percent of operated area. In spite of the ranging between 36 percent and 60 implementation of the land reforms in percent (MuzaffarAssadi 2000). India, still having inequalities in the Agriculture conditions and causes distribution of land holdings. In India for farmers’ suicides in India mainly, small and marginal farmers are Land holding situation in India: illiterate and marginalized economically, One of the major reasons for structural socially poor both in standards of living constraints in the Indian agriculture is and also role-status position compared to because a large proportion of the wage the large farmers. Increase in the labor force still continues to depend on marginal and small holdings has made www.ijar.org.in 153 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] difficult for cultivators to utilize highly heritage and occupations. Displaced the technological machines in their farm. artisan communities from the rural Farming/Agriculture suicides in economy to the urban migrants. Green India: revolution and 1991 economic reforms has The suicides in agriculture, farming sector been one of the reasons for agriculture since 1998, have become symbolic to the distress. larger and deeper problems of the Indian In the table (2) illustrates the agriculture economy. Over the periods, representation of Suicides of number of reports and studies have Farming/Agriculture activity. According acknowledged the several causes that to (NCRB 2013) the suicides committed have led the agricultural cultivators and by persons who are occupationally self- farm labourers resort to suicides employed in agricultural activities do not (A.R.Vasavi 2010). Green revolution and necessarily signify that suicides have been its practices implemented have been more committed by farmers only but also other effective in the delta and coastal areas, wage labourers. Observing the suicides in irrigated areas. Fruits of the Green agriculture in terms of age groups from Revolution have been mostly reaped by 2000 onwards to 2013 have been recorded the large and medium farmers. Big and highest among the age group of 33 – 44 medium farmers were using sophisticated years, followed by the age group of 15-29 technology and subsidized modern inputs years and age group of 45-50 years. Least and seeds in their fields accessibly. This in the age group of up to 14 years, led to increase in the productivity of crops followed by the age group of 60 years such as rice and wheat, which led to an above. In the agriculture, highest suicide increase of profits in agriculture. Green rates recorded in the Male is in the age revolution increased the social and group of 33-44 years, highest suicide rates political and economic power of the some recorded in the female is in the age group landed class and proprietary class, which of 15 -29 years. helped the rise as a dominant caste In the 2014 report, there is a clear cut groups. These caste groups with their division in agriculture suicides such as profits in the agriculture came to the farmers (have owned land, on urban areas and invested the in the real contract/lease), agriculture laborers. estate and trade sectors. In 1990s According to the 2014 NCRB report economic reforms taken place in three Farmers include those who own and work ways, such as globalization, liberalization, on the field (viz. cultivators) as well as and privatization, the main agenda is the those who employ/hire workers for field changes in the larger macroeconomic work/farming activities. It excludes policies in which key agriculture factors agricultural laborers. A total of 5,650 such as market regulation and credit farmers has committed suicides during availability and price support for 2014, accounting for 4.3% of total suicides agriculture commodities etc. have victims in the country. A total of 5,178 changed (R.S Deshpande and Saroj Arora male farmers and 472 female farmers 2010). Green revolution and the have committed suicides, accounting for introduction of commercial products 91.6 per cent and 8.4 per cent of total mainlyaffected the rural artisan classes, farmers’ suicides. 31.1 per cent, 29.2 per which subsequently led to the destruction cent, 14.1 per cent and 11.0 per cent of of their hereditary caste based hegemonic female farmers’ suicides, were reported in www.ijar.org.in 154 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Telangana (147 out of 472 suicides), In Indian agriculture irrigation also plays Madhya Pradesh (138 suicides), an important role to increase the Maharashtra (70 suicides) and production and increase in the Chhattisgarh (52 suicides) respectively. A productivity of crops, if observed the total of 2,568 farmers’ suicides was whole Green Revolution concentrated reported in Maharashtra followed by 898 only on the irrigated areas rather than such suicides in Telangana and 826 unirrigated areas. Irrigated areas suicides in Madhya Pradesh, accounting concentrate on the wheat, paddy, and for 45.5 per cent, 15.9 per cent, and 14.6 some cash crops cultivation. Unirrigated per cent respectively of the total farmer areas are mainly depends to cultivate the suicides during 2014. crops on the seasonal rainfall and tube The land holding status of farmers wells. Yield per hectare in the irrigated who have committed suicides in the areas would be more than the unirrigated year 2014 areas. From the table (4) it can be Land holding status of farmers who observed that number of operational committed suicide revealed that 44.5 per holdings by size wise under the irrigated cent and 27.9 per cent of victims were and unirrigated. In India out of the total small farmers and marginal farmers operational holdings, wholly and partially respectively, they together accounted for irrigated operational holdings is 55 per 72.4 percent (4,095 out of 5,650) total cent, these are controlling the 47 percent farmer suicides. 53.1 per cent and 14.5 per of the area. 41 per cent of operational cent of small farmers who committed holdings under the wholly unirrigated suicides were reported in Maharashtra which is controlling the 40.62 percent of (1,135 out of 2,515) and Telangana (366 the area. In the wholly irrigated, 91 out of 2,515) respectively during percent of marginal and small operational 2014.Among marginal farmers, 39.7 per holdings are controlling the 51 percent of cent and 25.5 per cent respectively of area, 8 percent of semi-medium, medium, farmers’ suicides were reported in large operational holdings are controlling Maharashtra (627 out of 1,577) and the 49 percent of the area. Indebtedness: Madhya Pradesh (403 out of 1,579). However, 47.3 per cent of well-off farmers Although the agrarian crisis is the result (large farmers) who have committed of multitudinous factors, including the suicides were also reported in economic reforms, and another important Maharashtra during 2014. factor is the indebtedness of the farmers. Fluctuations in rainfall: Indebtedness causing the farmers suicides Indian agriculture mainly depended on because of the more farmer’s especially the seasonal monsoons based on which marginal and small farmers for their either increase or decrease in the national agriculture credit depending much more total production of food grains, production on private money lenders than of cash crops and productivity. If rainfall institutional credit. Even though different has not been seasonally frequent in time types of banks are established all over the while sowing seeds it affects the overall country such as RRBs, Cooperative performance of the agriculture during Banks,etc who were at the ground level that crop year, especially dry land areas and have elevated, but marginal and small which mainly depends on the rainfall. farmers are not getting sufficient loans Lack of irrigation facilities from the banks as the loans are being lent www.ijar.org.in 155 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] to big landlords or big farmers or medium percent semi-medium, 5.4 percent farmers. Table (5) it can see that all over medium, 0.6 percent large agriculture India 902.01 lakhs agricultural households were in indebtedness.The households were estimated in which Average outstanding loan is increasing as 468.68 lakhs agricultural households were the size of the land increasing. For total in indebtedness. Out of the total indebted indebtedness, in which 81percent are agricultural households 63.68 percent marginal and small agriculture marginal, 18.4 per cent small, 12.0 households. Table.5 Indebtedness of Agricultural Households (all-India) in Different

Land Estimated % to Estimated % to % of Average Possessed Number of Total No. Total Indebted Outstanding (ha) Agricultural in of Indebted in Agricultural Loan Households each Agricultural each Households Amount (lakh) Class Households Class to Total (Rs) (lakh) Marginal 626.36 69.44 298.33 63.68 47.62 30133 0.41-1.00 Small 154.58 17.14 86.11 18.4 55.7 54800 1.01-2.00 Semi- 84.35 9.35 56.10 12.0 66.5 94900 medium 2.01-4.00 Medium 33.02 3.66 25.21 5.4 76.3 182700 4.01- 10.00 Large 3.71 0.41 2.92 0.6 78.7 290300 10 & above All India 902.01 100.00 468.48 100.0 51.9 47000 Size Classes of Land Possessed Source: Agricultural statistics at a glance 2014,Department of Agriculture and Cooperation,Directorate of Economics & Statistics Low yield or Productivity of various and having the greater yield (4786 Kgs) crops: per hectare and more production (27.90 In the table (6) it can be noted that area, percent) compared to India. Likewise, it production, and yield of crops in various can observed in other countries in the countries during the 2012. In the world paddy and wheat and sugarcane average paddy yield is 4548 Kgs per cultivations. In the wheat production hectare, in India yield for per hectare China, UK and Germany having the more paddy is the 3751 Kgs, area enumerated productivity per hectare compared to in the world paddy cropping is 26.17 India. In the sugarcane Brazil, USA, percent, and production is 21.38 per cent. Thailand, Egypt having the more In the world If observed the China productivity compared to India. Another comparatively has less cultivated area in important reason is, a decrease in the terms of paddy cultivation (18.72 percent) productivity and seed supply as most of www.ijar.org.in 156 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] the seeds are being sold off to Multi- import in any other countries may National Companies (MNC)increasingly increase productivity, higher than over the years, in which these companies expected and may also decrease the supplying are distributing the genetically productivity, lower than in otherimported modified seeds allover the country. These countries indigenous seed productivity, companies supplying genetically modified this is due to the differences in the seeds generated in some other countries weather condition among the countries in the name of increase in the productivity where seeds generated and where it used of crops, but when that seed export or in the cultivation Table: 8 Percentage of agricultural households reported sale of crops having the awareness andAccess to MSP during January 2013- June 2013

Percentage of households of the households sold reporting sale of crops to procurement agency crop Aware aware of sold to % of sale avg. sale of procurement procuremen at rate MSP agency t MSP to received at agency total MSP sale Rs. per Kg Paddy 31.5 18.7 10 14 13.15 jowar 21.3 20.7 19.2 36 13.83 Maize 11.8 6.1 2.9 4 11.45 Wheat 39.2 34.5 16.2 35 13.99 Barely 11 10.5 1.6 1 40.75 Gram 12.6 9.7 3.9 5 29.96 Sugarcane 45.4 40.7 36.6 33 3.25 Potato 12.1 0.9 0.6 2 8.33 Onion 15.3 9.8 0.6 1 17.5 Groundnut 8.9 8.2 1.3 1 37.62 Mustard 15.5 12.8 2.9 14 30.84 Coconut 21.5 11.0 1.7 0 9.34 Cotton 22.6 17.7 8.4 3 34.15 Source: NSSO 70th round 2013

Differences in the Cost of cultivation: Cost of cultivation is also one of the key can be noticed that difference in cost of factor causing to farmers distress in India. cultivation per hectare at C2 cost22 and After the implementation of the Green Revolution in India cost of the cultivation has also increased especially for marginal 22 and small farmers. Green revolution, Cost C2 includes all actual expenses in cash especially depended on the high improved and kind incurred in production by owner, technology, new farming methods, and interest on value of owned fixed capital assets new hybrid seeds. From the table (7) it (including land), rental value of owned land (net of land revenue),rent paid for leased in land www.ijar.org.in 157 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] cost of production for quintal at C2 of awareness about the crop insurance was various crops among the various states. In the most prominent reason. Not having paddy cultivation, cost per hectare highest the awareness about the availability of the in AP and followed by the Haryana and facility for the harvested crop was second Punjab, cost per quintal highest in the highest stated reason for not insuring the Haryana followed by the West Bengal and crops. Apart from this some percentage of AP, yield per hectare in quintals highest agriculture households who were not in Punjab followed by the AP. In the interested in insuring their crops or not Paddy cultivation cost per hectare highest felt the need for insuring their crops, in the Maharashtra followed by the AP, majority of the agricultural households cost per quintal highest in the did not insure their crop due to reasons Maharashtra followed by AP,yield per that can be attributed to lack of hectare in quintals highest in the awareness, improper coverage and reach Rajasthan followed by Gujarat and AP. and complicated procedures and lack of Likewise, it can observe in the sugarcane resources etc. and wheat. Lack of the markets to sell the Lack of awareness among the product: farming communities Sale of the production after picking up from the farm field also one of the matter. All the state governments In India failed In India lack of the markets to purchase to make the awareness about the farm product at minimum support price, procuring agency and minimum support often farmers approach to the various price structure of the products to the most agencies for sale their output. Because of of the marginal, small and tenant farmers. this, most of the farmers selling their Without knowing these things farmers are products at lower products and some of selling their products with lower price and the farmers are being cheated by private to the private trader. Table (8) shows that traders with lower price. From the table for all crops except sugar cane, the (10) It can be noticed that during the majority of the agriculture households are January 2013 to June 2013, in the paddy not aware about the minimum support crop 72.10 percent of the agriculture price (MSP), procurement agency. Percent households have sold their output to the of sales at MSP to total sale highest local private trader.For all crops except percent in the jowar, wheat, sugarcane sugar cane, the majority of the agriculture agriculture households. households sold off their crops either to From the table (9) it can be observed that local private traders or Mandi. For sugar percentage distribution of agricultural cane, most of the households sold off to households who have not insured their Cooperative & Government agencies and crops by reasons for selected crops during processor. In the case of cotton 25.35 January 2013- June2013.The highest percent of the farmer sold their product to percentage of cultivating agricultural the input dealer The cotton crop households stated that not insuring their cultivators do have most of the farmers crops during the agricultural year committing suicides than rest of the crop January 2013- June 2013 due to lack of cultivating farmers. and imputed value of fixed capital assets (Directorate of economics and statistics 2014.). www.ijar.org.in 158 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Crop Local mandi Input Cooperativ Processors others all privat dealer e &govt e agencies trader Paddy 72.10 14.89 7.36 4.39 0.94 1.89 100 jowar 55.75 37.76 4.31 0 0.35 2.52 100 Maize 71.48 18.91 8.62 2.64 0 0.69 100 Wheat 49.18 34.78 9.23 6.79 0.28 1.08 100 Barely 55.71 35.71 8.58 0 0 0 100 Gram 41.91 46.80 10.90 0.37 0 0.56 100 Sugarcane 22.79 5.19 1.06 44.22 27.04 0.74 100 Potato 71.72 23.59 5.99 0.19 0.19 0.38 100 Onion 66.66 26.15 6.07 1.28 0 0.92 100 Groundnut 66.32 24.09 5.37 1.88 0.14 2.90 100 Mustard 46.27 45.83 8.33 0.43 0.21 0.21 100 Coconut 83.91 10.38 0.81 3.05 0 3.66 100 Cotton 44.96 24.81 25.35 1.19 3.79 0.10 100 Table: 10Percentage of agricultural households reporting the sale of selected crops by agency for sale during January 2013-June 2013. Source: NSSO 70th round 2013. Conditions of tenant farmers: state governments to protect the tenants, Tenancy farming is not new, it has been but no policy made a better impact on existing back since the olden days, due to reducing the tenancy and give the the large portion of the land was employment assurance on the other than concentrated small number of people, agriculture sectors.Tenant farmers because of these mostly agriculture continuously facing problems in the field depended families used to leased-in land of farming due to the lack of credit, lack from landlords to self-sustain in the of agriculture inputs and not getting society and reduce their hunger. In subsidies on the purchased agricultural India, 40 per cent of the rural households inputs. These tenant farmers every time are either landless or own less than 0.2 in trouble, because of the landlord who hectares of land.Less than 1 percent of impose the restriction on tenant farmer households own 14 percent of the land. If in every time and also while buying observe the Uttar Pradesh where leasing seeds, selling products, borrowing is illegal except in rare cases, 23 percent money. In 2014, according to NCRB 5650 of rural households reported leasing in of farmer’s suicides taken place, of which land and most of these are landless 701sucides are contact or tenant farmers. Policy implications: households. At the All India Level, 61 percent of households leased in the land. To provide the life and health insurance The landless and marginal farmers are to the farmers as like as a government rising all over India with fixed rent, they employee. There is need to survey the are taking leased in the land, even lands of the farmers, and examine the though implementation of land reforms quality of lands, then has to suggest to (Kripa Shankar 1999). A number of the farmers which crops have to cultivate policy initiatives taken by the central and in their lands. Like Panchayat secretary

www.ijar.org.in 159 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] and VRO (Village Revenue Officers) need These are the reasons causing to the to employ the agriculture adviser to give farmer’s distress and suicides, especially suggestion in the cultivation, for in the Maharashtra, Telangana, and example, how much pesticides and Karnataka and along with other states in fertilizers has to be usedin the crop the country. cultivation, ways to reduce the cost of References: cultivation and health effects of farmers. Accidental Deaths &Suicides in India There is need to establish the small scale (2000 -2014). National Crime Records and cottage industries and also need to Bureau Ministry of Home Affairs give the trying to rural educated youth Government of India, reports published and women. The government should 2000-14. announce the farm input prices in every Agricultural Statistics at a glance. village Panchayat, these create (2014). Department of Agriculture & awareness to the framers while they buy Cooperation, Directorate of Economics & the farm inputs and cannot be cheated Statistics, Ministry of Agriculture, by the traders. There is the need to Government of India. protect the tenants’ rights through the A.K Chakravarti. (1973). “Green proper policy instruments. Credit revolution in India” annals of the availability, facilities have to increase to association of American geographers, the marginal, small and tenant farmers Vol. 63, No. 3, pp. 319- 330. through the banks without any Deshpande, R.S. (2002). “Suicide by restriction. farmers in Karnataka: agrarian distress Conclusion: and possible alleviation steps”, economic Green revolution and economic reforms and political weekly, 37(25):2601-10. have not benefited the marginal and Deshpande R.S. et.al. (2005). “Farmers’ small farmers in the country. Due to the Distress: proof beyond the question”, some drawbacks in the Indian economic and political weekly, 40(44-45): agricultural related policies, which have 4663-65. not improved the conditions of farmers Deshpande R.S. et.al. (2010). “Editors both in terms of standard of living and introduction”. Agrarian crisis and availability of technically affordable farmer’s suicides in India, land reforms resources made aware and also to be in India volume 12, chapter -1, page 1-42. distributively allocated, still they have HarendranathDwivedi and Ashok Rudra. been affected by various factors due to . (1973). “Economic Effects of Tenancy: the lack of awareness about government Some Further Negative Results”, policy aid programmes. There has been Economic and Political Weekly, Vol. 8, increase in the marginal and small No. 29, pp. 1291-1294. farmers and along with these tenant Kripa Shankar. (1999). “Tenancy farmers are also increasing in the Reforms: Rhetoric and Reality”, country. Most of the farmers working in Economic and Political Weekly, Vol. 34, agriculture are not benefiting because of No. 46/47, pp. 3264-3265. the increasing cost of cultivation, lower MuzaffarAssadi. (2000). “Seed Tribunal: productivity and lower price of the Interrogating Farmers' Suicides” product, lack of awareness about the Economic and Political Weekly, Vol. 35, market conditions, on insurance and No. 43/44, pp. 3808-3810. higher interest rate on informal credit. www.ijar.org.in 160 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

FDI, Economy and Development: A study of Indian Economy in Global Era

Kishore Kumar Aleti, UGC-Centre for the Study of Indian Diaspora, University of Hyderabad

Abstract: Since independence, India has been planned for various models of development. Although it has achieved development though various models, but globalization has a great impact on the development of Indian economy. In the global era, the economic activity of India has not only increased but also changed through the advancement in information and technology and communication. This phase of development is depended on the various aspects. One of such aspects is FDI. So, this paper tries to analyze FDI in the context of India, and the impact of FDI in the development of Indian economy in the contemporary times. This paper also tries to debate the advantages and disadvantages of FDI model of development in India. This paper is relied on secondary sources for literature and analysis of FDI and its impact on Indian economy. Keywords: Foreign Direct Investment, Technology, Economic Development,

1. Introduction reinvesting profits earned from overseas Foreign direct investment (FDI) is an operations and intra company loans”, investment made by a company or while in a narrow sense, it refers to just individual in one country in business build new facilities (Krishnaveni & interests in another country, in the form Haridas 2013: 233). On the whole, of either establishing business operations foreign direct investments bring new or acquiring business assets in other technology; create employment and helps country, such as ownership or controlling for the economic developments of the interest in a foreign company developing countries. For Josuph (www.investopedia.com). In other sense, Wellington & Jammu (2014) “FDI is an foreign direct investment (FDI) is a engine of economic growth”. In India, the direct investment into production or role of FDI has both and positive and business in a country by a company in negative consequences. To, understand another country, either by buying a the scenario of FDI in India and its company in the target country or by impact on Indian economy either expanding operations of an existing positively or negatively, it has to business in that country (Ramaabaanu & understood the circumstances attracted Saranya 2014). In a short form, foreign the DFI in India and how it affected the direct investment means investment in local market system over a period of foreign country where the investor time. retains control of the investments 2. Understanding of Foreign Direct (Wellington & Jammu 2014). Foreign direct investment can be seen in many Investment in India forms. Broadly, a foreign direct Foreign direct investments play a very investment includes “mergers and important role in the economic acquisitions, buildings new facilities, development of a country. When a www.ijar.org.in 161 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] developing country faces deficit of Minister Manmohan Singh (Krishnaveni savings, this problem can be solved with & Haridas 2013). India started LPG the help of foreign direct investment model of development under the Finance (Krishnaveni & Haridas 2013). Although Minister Manmohan Singh. The LPG India started inviting foreign refers to Liberalization, Privatization investments since independence, the and Globalization. This LPG strategy inflow of foreign investments was very emphasized new forms of developments low before 1990. There are various in India. One of its developmental reasons for this phenomenon. Before the strategies was inviting foreign economic reform in India (up to 1990), investments. Since 1991, foreign direct the flows of foreign direct investments to investments started to increase at a India were limited because of the type of considerable level. By 2000, it has industrial developmental strategies and become one of the major investments in various foreign investment policies Indian business which has covered all the followed by the nation. Until 1990, India sectors of the economy. The volume of did not receive much FDI compared to FDI in India can be seen through various the DFI received after 1990s. studies, statistical reports of national and international. The below mentioned In India, foreign investment was table 1.1 shows FDI inflows to India introduced in 1991 as Foreign Exchange during the period 2000-2010. Management Act (FFMA) by Finance Table 2.1 FDI inflows during the period 2000-2010 Year A. Direct Investment

Rs (in Crores) US $ (in Millions) 2000-2001 18406 4029 2001-2002 29235 6130 2002-2003 24367 5035 2003-2004 19860 4322 2004-2005 27188 6051 2005-2006 39674 8961 2006-2007 103367 22826 2007-2008 140180 34835 2008-2009 161536 35180 2009-2010 176304 37182 Total 740117 164551 Source: “Hand Book of Statistics on Indian Economy” RBI (2000-2004) Table 2.1 shows the foreign direct 2009-10. Similarly, in the U.S dollars investments in India during the period too, the same results can be seen. This 2000-2010. From the table from 2000 can be understood from the bar diagram. onwards FDI started to increase, but in The diagram shows that there is a more 2003-04 it reduced little bit. However, growth of FDI in India from 2006-07 to recovered very soon and started to be 2009-10. more in number. On the whole, from 18406 in 2000-01 increased to 176304 in www.ijar.org.in 162 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

While table 2.1 shown, the inflow of FDI show the growth rate of the FDI in India to India from 2000-10, table 2.2 try to from 2000-10. Table 2.2 Trends in FDI flows to India Year FDI in (Crores) Changes Simple growth rate (%) 2000-2001 18406 9068 49 2001-2002 29235 10829 37 2002-2003 24367 4868 20 2003-2004 19860 4507 23 2004-2005 27188 7328 27 2005-2006 39674 12486 31 2006-2007 103367 63693 62 2007-2008 140180 63813 26 2008-2009 161536 21356 13 2009-2010 176304 14768 8 Total 740117 185716 296 Annual Average 74011.7 185716.6 29.6 Sources: “Hand Book of Statistics on Indian economy” RBI (2003-04) Table 2.2 shows growth rate trends in position in the list of top 10 destinations FDI to India from 2000-2010. From the for foreign direct investments (FDI) in table, although India started attracting 2014, after failing to make it to the list a good number of FDI from 2000, but it year ago (www.livemint.com). A country reduced from 2003-2006. Then again it which was not listed in the top ten started too increased from 20006, but recipients of foreign direct investment again went down very soon and after 2008, for the first time, India again continued for the further years. broke in to the top ten recipients of However, on the whole the growth rate foreign direct investment in 2014. India of FDI ranged between -20 percent and jumped to the ninth rank in 2014 with a 62 percent and reached the highest point 22 per cent rise in FDI inflows to $34 of 62 percent in the year 2002-2003. One billion. Hence, India was at the 15th of the causes of reduction in DFI flows to position in the previous two years India in mentioned period of time was (www.thehindu.com). So far tables 2.1 due to the impact of global crisis during and 2.2 showed FDI flows from 2000-10 the 2007-08. This can be seen through and trends in DFI flows to India, table diagram for a better understanding. 2.3 will reveal top ten countries investing From the diagram, although FDI has DFI in India. been increased from 2000-10, but there Table 2.3 shows the share of top are fluctuations in growth rates. investing countries FDI inflows. Of the 151 countries investing DFI to Indian top Although there are fluctuations in DFI ten for the years 2013-2016 are shows in inflows to India over a period of time, as table 2.3. As per the table 2.3, among the per the latest reports of the World ten countries, Mauritius is the top one Investment Report 2015 released by the country which is investing more DFI United Nations Conference on Trade and than other nine countries. The below Development (Unctad) India regained its

www.ijar.org.in 163 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] mentioned table 2.4 represents country wise FDI flows from 2000-2016. Table 2.3 Share of top investing countries FDI Equity inflows S.NO Country 2013-14 2014-15 2015-16 Cumulative %age of April- April- April- Inflows total March March March April- inflows in March terms of the US $ 1 Mauritius 29,360 55,172 54,706 480,363 33% (4,859) (9,030) (8,355) (95910) 2 Singapore 35,625 41,350 89,510 256,667 16% (5,985) (6,742) (13,692) (45,880) 3 U.K 20,426 8,769 5,938 115,592 8% (3,215) (1,447) (898) (23,108) 4 Japan 10,550 12,752 17,275 110,671 7% (1,718) (2,084) (2,614) (20,966) 5 USA 4,807 11,150 27,695 94,575 6% (806) (1,824) (4,192) (17,943) 6 Netherlands 13,920 20,960 17,275 98,533 6% (2,270) (3,436) (2,643) (17,314) 7 Germany 6,093 6,904 6,311 44,870 3% (1,038) (1,125) (986) (8,629) 8 Cyprus 3,401 3,634 3,317 242,681 3% (557) (598) (598) (8,552) 9 France 1,842 3,881 3,937 26,525 2% (305) (635) (598) (5,111) 10 U.A.E 1,562 2,251 6,528 21,658 1% (255) (367) (985) (4,030) Total FDI flows 147,518 189,107 266,322 1,495,859 from the countries (24,299) (30,931) (40,001) (288,634) ources:http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_Jan uaryFebruaryMarch2016.pdf accessed on 12th January 2017.

Table 2.4 reveals country wise FDI flows one countries among the top ten from 2000-2016 to India. By observing countries investing FDI in India from the table 2.3 and 2.4 certain inference 2000-2016. The FDI are in various can be draw out. The inferences was that sectors of the Indian economy. Although from 2000-2016, among the top ten FDI are investing in around 66 sectors of countries which are investing FDI to Indian economy, the top ten sectors India are those ten countries which are where these FDI are more in number can mentioned in the table 2.3 and 2.4. be seen through data that available the Moreover, the continuity of sending FDI statistics. The next will try to give a brief from their countries did not change overview about the top ten sectors much over a period of time also. For that attracting highest FDI inflows reason, Mauritius has been one of the top

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Table 2.4 shows countries wise FDI flows from 2000-2016 S. No Name of the Amount of foreign direct %age with Country investment inflows inflow (In Rs crores) (In US$ millions) 1 Mauritius 480,363.08 95,909.73 33.24 2 Singapore 256,666.81 45,879.60 15.90 3 United 115,591.93 23,108.35 8.01 Kingdom 4 Japan 110,671.35 20,965.98 7.27 5 U.S.A 95,574.89 17,943.35 6.22 6 Netherlands 94,533.14 17,314.46 6.00 7 Germany 44,870.10 8,629.27 2.99 8 Cyprus 42,680.76 8,552.40 2.96 9 France 26,525.03 5,111.48 1.77 10 U.S.A 21,648.17 4,029.89 1.40 Sources:http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_Ja nuaryFebruaryMarch2016.pdf accessed on 12th January 2017. Table 2.5 Sectors attracting highest FDI equity inflows Rank Sector 2014-15 2015-16 2016- Cumulative % to total April- April- 17 inflows inflows March March April- (in terms March of US$ 1 Service Sector 27,369 45,415 35,368 293,722 18% (4,443 ) (6,889 ) (5,288) (56,080) 2 Construction 4,652 727 414 114,350 8% Development (4,652) (113) (62) (24,250) 3 Computer Software 14,162 38,351 6,903 119,087 7% & Hardware (14,162) (5,904) (1,032) (22,050) 4 Telecom 17,372 8,637 16,659 111,388 7% (2,895) (1,324) (2,787) (21,169) 5 Automobile 16,760 16,437 4865 88,259 5% Industry (2,726) (2,527) (729) (15,793) 6 Drugs 9,052 4,975 4,270 74,367 5% Pharmaceutical (1,198) (754) (641) (14,490) 7 Trading 16,755 25,244 9,936 78,772 4% (2,728) (3,845) (1,482) (13,354) 8 Chemical- 4,658 9,664 3,561 63,116 4% Fertilizers (763) (1,470) (532) (12,433) 9 Power 4,296 5,662 3,744 56,357 4% (767) (869) (559) (11,035) 10 Hotel& Tourism 4,740 8,761 3,497 53,207 3% (777) (1,333) (523) (9,750) Sources:http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_Ja nuaryFebruaryMarch2016.pdf accessed on 12th January 2017. www.ijar.org.in 165 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Table 2.5 represents sectors attracting some sectors. For instance in highest FDI equity inflows in India. Of construction and development sector, the ten top sectors attracting FDI, the there is considerable amount of service sector is more number followed reduction in FDI flows, followed by by rest of all the remaining sectors. In Computer software and Hardware, service sector, the flow of investments Automobile Industry, and trading from 2001-2017 has been on rise, there is industry. The rest of sectors, like Power, no any down fall to this sector. The Chemical (fertilizers), Drugs has less remaining all sectors have fluctuations in reduction in attracting DFI. attracting FDI. There more reduction in

Table 2.6 sector wise FDI equity inflows from April 2000 to September 2016 S.No Sector Amount of FDI inflows %age of total inflows In (Rs Crores) In (US$ million)

1 Service sector 293,722.22 56,080.38 18.08 2 Construction 114,350.25 24,249.79 7.82 3 Computer (software 119,086.87 22,050.02 7.11 Hardware) 4 Telecommunication 111,388.39 21,169.09 6.83 5 Automobiles 86,258.79 15,793 5.09 6 Drugs 74,367.25 14,490.21 4.67 &Pharmaceutical 7 Trading 78,7772.13 13,354.42 4.31 8 Chemical 63,116.31 12,432.77 4.01 (fertilizers) 9 Power 56,357 11,034.73 3.56 10 Hotel &Tourism 53,207.16 9,749.97 3.14

Sources:http://dipp.nic.in/English/Publications/FDI_Statistics/2016/FDI_FactSheet_Ja nuaryFebruaryMarch2016.pdf accessed on 12th January 2017.

Table 2. 6 shows about sector wise- FDI equity inflows from 2000-2016. Of the Advantages of FDI ten sectors getting highest FDI equity Foreign direct investments have many inflows, sector received in number advantages to both the investors and followed by rest of the all other sectors. recipients. One of its primary benefits is One of the unique things is the service that it allows money to freely go to sector which has been setting FDI whatever business has the best prospects inflows from 2000 to 2016; continuity is for growth anywhere in the world. It not changed at a large number, while it gives priority to well run businesses changed to other sectors with regardless of colour, creed and fluctuations. competition (Krishnaveni & Haridas

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2013). In India, FDI has both advantages Similarly, there should a priority to and disadvantages. The advantages attract foreign investments but it should include various. Economic growth is not give the space to dictate the Indian possible with FDI. Technology diffusion business and markets. and knowledge transfer is possible through FDI. When a country invests in Reference another country its companies bring out Anitha, R. 2012. Foreign Direct machinery, technology for the Investment and Economic Growth in establishment of ventures. Such India. International Journal of technology will be used to others in that Marketing, Financial Services and country. Management Research, Vol. 1, No. 8: Disadvantages of FDI 108-125. The presence of a higher amount of FDI Devaji, M. 2012. Impact of Foreign Direct will dominate the business in country. Investment on Indian Economy. For instance, FDI retail sector in India, Research Journal of Management and giving services to all the citizens of India, Science, Vol. 1, (2): 29-31. but with the spirit of business it will Devi, B. E. 2016. An Overview of Foreign dominate the entire consumer market. It Direct Investment in India. International may lead to an unfair competition and Journal of Research in Finance and this may lead to exit of domestic Marketing, Vol. 6, No. 4: 89-98. retailers, especially the small family Farooqui, S. U. 2016. Analysis of Foreign managed outlets. Direct Investment (FDI) in India and Conclusion China. International Journal of Advance FDI played an important role in the Research in Management and Social long-term development of a country not Science, Vol. 5, No.1: 463-483. only as a source of capital but also for Foreign direct investments from April enhancing competiveness of the domestic 2000-Setpember 2016- economy though new employment http://dipp.nic.in/English/Publications/F opportunities. However, on a negative DI_Statistics/2016/FDI_FactSheet_Janua sense, FDI is described that as a new ryFebruaryMarch2016.pdf accessed on form of western imperialism, which the 12th January 2017. Indian nations was to combat through Gola, K. R et al. 2013. The Role Foreign indigenous capacities. So, by keeping in Direct Investment in the development of view the importance of both the foreign Indian Economy. ACCMAN Journal of investments and national investments, Management, Vol. 5, No. 1: 1-10. there should be some initiatives to utilize Hameed, M. S. 2014. Foreign Direct both the FDI and Indian investments to Investment, the Indian Scenario. bring out economic development International Journal of Scientific and appropriately. The presence of higher Research Publications. Vol. 4, No. 2: 1-5. foreign investments would dominate India among the top countries to attract Indian market for their profit, as British DFI in 2014: Uncted- done in Indian. The British who came to http://www.livemint.com/Money/ZxJzJK India for business, over a period time TVc5sPD2XcxJQZvI/India-among-top- they got power to control overall 10-countries-to-attract-highest-FDI-in- business then started to get power 2014.html accessed on 12th January 2017. ultimately to control the government. 2, No. 3: 95-101. www.ijar.org.in 167 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Fiscal transformations and protagonist approach of the rule Dr K K S R Murthy, Associate Professor, School of Law, ADYP University, Pune, Maharashtra, India Abstract: There is a reason why the wise make a distinction between justice and equality. Merely providing equal opportunities and equal rights for all does not necessarily guarantee justice. When it comes to formulating public policies, therefore, a one-size-fits-all approach is not the best line of action. Law requires major adjustments according to both the concept and impact of systematization of economic reforms. Since the liberalization of economic policy the process of legal reforms is going on which in turn resulted to introduction of significant policy initiatives, to provide stimulus for accelerated growth, industrial efficiency and international competitiveness. At this juncture, the importance of examining consistency within the legal system cannot be overstated. Simplified models of the formalized system of Law with regard to fiscal reforms to curb illegitimate activities are discussed in this paper. Keywords: equality, fiscal reforms, illegitimate, justice, law, liberalization, public policy, systematization. Introduction that Indian economy encounters. At the time of independence it was said Analytical and explanatory approach has that we were undergoing three been used to check the hypothesis for revolutions; the political revolution…, this article. the second revolution was a social revolution … and the third was the Theoretical reflections on the rule economic revolution. All these were of Law dynamic and the Indian Constitution was Theoretical reflections on the rule of Law actually trying to respond to all of these. should pay more attention to the legal Despite the fact that Policy decisions of duty to give reasons than has been done the government, economic updates, web in the past, thereby leading to a context- journals, articles and books on economic sensitive assessment of the rule of Law reforms by various authors of national and its virtue(s). As per William Edwards and international stature are reviewed Deming, a system is a network of for this article. This article focuses on interdependent components that work the objectives to study the Structural together to try to accomplish the aim of transformation of the rule pertaining to the system. A system must have an aim. economic reform process after 1991 and Without the aim, there is no system. At the possible outcomes leading to this juncture governments promise to economic advancement of the country. provide economic security and public The hypothesis for the article is India goods to its people primarily aimed at has changed in ways unimaginable in the securing equality. Indeed, last 25 years and the momentum systematization becomes an economic favoured economic liberalization. It was notion, which is perfectly applicable in asserted that adopted liberalized this era of growing trading states. Law economic policies to private and globalise require major adjustments according to its economy i.e., like trickle down policy both the concept and impact of would automatically solve the problems systematization of economic reforms. www.ijar.org.in 168 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

Reforming the rules shapes the liberal order looking increasingly understanding of the role of Law in the uncertain. The progressive liberal, by integration process, and establishes the ideological and moral association, is limits of Constitutional Jurisprudence. paying the price for the insensitivity of Legal Realists have already convincingly the neo-liberal economist. put forward the argument that The promises of neo-liberalism, which systematization as a deductive and the poor saw as helping the rich with no autonomous science that draws decisions tangible benefits for them, never from the applications of legal principles materialized: the promises of the right and precedents is not possible without wing may also never get them anywhere, reference to the values, social goals, but then that’s a matter for the longer political or economic context that term. The reality is that liberals of all underlie it. Rules achieve this purpose hues have summarily failed to creatively mainly by establishing and creating an and efficiently been unable to address economic union, whose aim is primarily economic inequalities and cultural to establish an internal and international insecurities. Liberals, comfortable in market. their ivory towers, have not adequately represented the poor and downtrodden. One should read Lon Fuller’s passage in Surely, the liberal edifice is still worth the ‘Anatomy of Law’: fighting for, but we must shed our “Those responsible for creating and intellectual arrogance to face up to the administering a body of legal rules will real-world problems. always be confronted by a problem of the system. The rules applied to the decision Proprietary to pinstripe capitalism : of individual controversies cannot simply India may now be on the road from be isolated exercises of judicial wisdom. proprietary to pinstripe capitalism. They must be brought into, and Demonetisation, along with GST, will maintained in, some systematic bring about a fundamental reordering of interrelationship: they must display business enterprise in India. The some coherent internal structure.” romanticisation of ordinary folk plying Hence, appropriate form must be their trade was a fundamental aspect of distinguished from, that appropriate the understanding of early capitalism. from should not, even in the course of its But politics apart, the replacement of application, generally collapse into informal proprietary capitalism by something else, such as “substance”, or formal pinstripe capitalism has social “policy”, or “equity”, and that issue of implications as well. Capitalism’s social appropriate form pose many significant and political legitimacy derives from the choices in legal ordering, general values, industrious small businessman and the equitable consideration, private innovative garage entrepreneur. The key preferences, and more. protagonists in Adam Smith’s The Liberalism and progressive Wealth of Nations were not the directors populism of South Sea Company or Bank of Neo-liberal economic policies that Scotland, but the butcher, brewer, baker, wreaked havoc in many underdeveloped flour miller, candle-maker and pin countries are now creating problems for factory owner. Margaret Thatcher prided the First World with guardians of the herself on being the daughter of a www.ijar.org.in 169 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] greengrocer, just as Narendra Modi’s and financial sectors are perceived to be humble chaiwala origins featured subjected to the control and influence of prominently in his breathless 2014 organized crime. Fighting money election campaign. laundering and terrorist financing is therefore a part of creating a business friendly environment which is a This romanticisation of ordinary folk precondition for lasting economic plying their trade couldn’t have found development. better expression than in the populist The economic and political influence of American politician William Jennings criminal organizations can weaken the Bryan’s famous ‘Cross of Gold’ speech of social fabric, collective ethical standards, July 1896: and ultimately the democratic “The merchant at the crossroads store is institutions of society. In countries as much a businessman as the merchant transitioning to democratic systems, this of New York. The farmer who goes forth criminal influence can undermine the in the morning and toils all day, begins transition. Most fundamentally, money in the spring and toils all summer, and laundering is inextricably linked to the by the application of brain and muscle to underlying criminal activity that the natural resources of this country generated it. Laundering enables creates wealth, is as much a businessman criminal activity to continue. as the man who goes upon the Board of Unfortunately, Belgium and France were Trade and bets upon the price of grain.” also the worst victims of indigenous and

Economic concerns vis-à-vis trans-border terrorism. This rampage organized crimes started on January 7, 2015, with the Charlie Hebdo attacks in Paris. France List of the economic concerns of the did not detect that Amedy Coulibaly and average citizen of any Country are Medi Nemmouche had bought their Jobless growth, Low credit growth, and weapons from Brussels. Nor did Belgian Dismal investments etc. Some might agencies know that Molenbeek, a small argue developing economies cannot 5.8-sq km area in their Country was afford to be too selective about the Islamic State’s busiest terror incubating sources of capital they attract. But unit in the world. This long bloody spree shelving action is treacherous. The more saw 15 serious terror incidents, killing it is deferred, the more entrenched 254 innocents and 16 terrorists. organized crime can become. Because of the opportunities and needs created by Courts and economic policy the global dimension of business, crimes Justice requires not only an adherence to such as fraud, counterfeiting, corruption procedural integrity, where democratic and embezzlement have opportunities to institutions collectively determine social shift from individual or family ambit to and economic policy, but, even more move organized and competitive global significantly, it also requires that any structures. policy takes into account the potential As with the damaged integrity of an injustice that might accrue out of its individual financial institution, there is a enforcement. There is an often-repeated damping effect on foreign direct belief that issues of policy especially investment when a country’s commercial those involving the state and nature of a www.ijar.org.in 170 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] country’s economy, such as economic elected prime minister has resorted to reforms ought to be beyond judicial demonetization. Even Arthakranti, the review. That is, Courts should exhibit Pune NGO from where the idea restrain in examining what are really ostensibly emanated, is distancing itself matters for executive determination. from a ham-handed plan to withdraw 85 Obviously, India’s judiciary has per cent of the country’s currency historically shown a reticence in overnight. Irrespective of other economic interfering in matters of economic policy. factors, one thing is certain that is As the former President of the Israeli Demonetization has broken the back of Supreme Court Aharon Barak had once terror funding in the immediate future. observed, separation of powers exists to India’s Economic Policy “strengthen freedom and prevent the India redrafted its economic policy in the concentration of power in the hands of year 1991 to usher in a new era of one governmental actor in a manner deregulation, liberalization and global likely to harm the freedom of the integration. Since then the process of individual”. Differing value judgments legal reforms is going on which in turn can lead to entirely different conclusions. resulted to introduction of significant But that need not dissuade the Court policy initiatives, to provide stimulus for from applying its mind to the subject, accelerated growth, industrial efficiency and from ruling upon questions of Law and international competitiveness. As that go to the root of the policy i.e., part of reform process, the Government validity of the economic reforms. In has also initiated legislative reforms in other words, Court is to judge the the area of economic laws. The Government’s competency in effecting Government enacted Foreign Exchange the policy, and, even more gravely, to Management Act (FEMA), the decide on whether the means of its Competition Act replacing the MRTP Act enforcement has led to unconstitutional and amended the Consumer Protection consequences. Act in the year 2002. The Legal Demonetization of currency Metrology Act, 2009 replacing Standards Demonetization is usually associated of Weights and Measures Act, 1976 and with decrepit economies and Foreign Contribution (Regulation) Act, hyperinflation, such as Zimbabwe 1976. recently and Argentina in the past. The In the area of Intellectual Argentine government demonetized Property, which has economic value, the several times in the last century; it even Government has enacted Trade Marks changed its currency’s name from peso to and Designs Act and amended the austral, then back to the peso — each Patents Act and the Copyright Act. The time, it further reduced confidence in the philosophical justification for including currency. Myanmar, Ghana, the former computer programs under literary work Soviet Union, Nigeria and Zaire also has been that computer programs are demonetized, leading to devastating also products of intellectual skill like any economic consequences. In all cases, other literary work. Copyright protection often done by military dictatorships, gives exclusives rights to the owners of demonetization eroded confidence in the the work to reproduce the work enabling currency. It is therefore surprising that a them to derive financial benefits by reform-minded, popular, democratically exercising such rights. If any person www.ijar.org.in 171 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] without authorization from the owner Resolution of the International exercises these rights in respect of the Organization of Securities work which has copyright protection it Commissions constitutes an infringement of the The International Organization copyright. In this regard the Government of Securities Commissions (IOSCO) has further amended the Patents Act in adopted, in October 1992, a resolution 2005 and notified Trade Mark Rules, encouraging its members to take 2002 and Patents Rules, 2003 as necessary steps to combat money amended in 2005. The Foreign Trade laundering in securities and futures Policy 2009-14 has also been announced markets. Time to time Securities and in line with the reform agenda and Exchange Board of India (SEBI) is amended from time to time. Further, the issuing guidelines for combating money Prevention of Money Laundering Act to laundering in India. deal with new categories of economic The Financial Action Task Force offences, has also been made operative The Financial Action Task Force with effect from 1st July, 2005. is an inter-governmental body whose Indian Laws and Regulation purpose is the development and governing International promotion of policies, both at the Transactions national and international levels, to Indian Laws and Regulations Governing combat money laundering and terrorist International Transactions include financing. The Task Force is therefore a Foreign Exchange Management Act “policy-making body” which works to (FEMA), 1999; Taxation of Foreign generate the necessary political will to Income in India; Foreign Investments by bring about national legislative and Indian Entities; Setting up Offices and regulatory reforms in these areas. Since Branches Abroad by Indian Entities; its creation the FATF has spearheaded Restrictions on Trade in Endangered the effort to adopt and implement Species and Other Commodities. measures designed to counter the use of the financial system by criminals. It Basel Committee’s Statement of established a series of Recommendations Principles in 1990, revised in 1996 and in 2003 to In December 1988 the Basle Committee ensure that they remain up to date and on Banking Regulation Supervisory relevant to the evolving threat of money Practices issued a statement of principles laundering that set out the basic to be complied by the international framework for anti-money laundering banks of member states. These principles efforts and are intended to be of include identifying customers, avoiding universal application. India became 34th suspicious transactions, and cooperating member of FATF in the year 2010. with law enforcement agencies. The Moreover, the FATF does not have a statement aims at encouraging the tightly defined constitution or unlimited banking sector to adopt common position life span. However, the Task Force in order to ensure that banks are not periodically reviews its mission. used to hide or launder funds acquired Prevention of Money Laundering – through criminal activities. Hence, in Indian Initiatives India KYC norms were introduced. In view of an urgent need for the enactment of a comprehensive legislation www.ijar.org.in 172 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] for preventing money-laundering and compliance with all KYC/AML/CFT connected activities, confiscation of guidelines issued from time to time, in proceeds of crime, setting up of agencies respect of add-on / supplementary and mechanism for coordinating cardholders also. Banks should ensure measures for combating money that appropriate KYC procedures are laundering etc., the Government duly applied before issuing the cards to introduced the Prevention of Money the customers. Hence, agents are also Laundering Bill, 1999 in the Parliament subjected to KYC measures. on October 29, 1999. The Bill received Reporting to Financial Intelligence the assent of the President and became Unit – India Prevention of Money Laundering Act, In terms of the PMLA Rules, banks are 2002 on 17th January 2003. The Act has required to report information relating come into force with effect from July 1, to cash and suspicious transactions and 2005. all transactions involving receipts by Objective of KYC Norms / AML non-profit organizations of value more Measures / CFT Guidelines than rupees ten lakhs or its equivalent in The objective of Know Your foreign currency to the Director, Customer (KYC) Norms / Anti-Money Financial Intelligence Unit-India (FIU- Laundering (AML) Measures / IND) in respect of transactions. Combating of Financing of Terrorism Benami property transactions (CFT) guidelines is to prevent banks But the Government must ensure that from being used, intentionally or the crackdown does not lead to undue unintentionally, by criminal elements for harassment by officers empowered under money laundering or terrorist financing the Law to unearth and confuse benami activities. KYC procedures also enable properties. The Law says whenever a banks to know / understand their benami property is confiscated, all the customers and their financial dealings rights and titles will vest with the better which in turn help them manage Centre. Safeguards must make sure that their risks prudently. Notwithstanding this expropriatory power is used with that, Banks should ensure that the extreme care. Benami property deals provisions of Foreign Contribution will cease when every penny is accounted (Regulation) Act, 1976 as amended from for. Subsequently, after developments of time to time, wherever applicable are demonetization took place. An efficient strictly adhered to. At the outset Reserve functioning of the judicial system is a Bank of India issued KYC Guidelines. must to lower disputes and cut needless delays in confiscation of benami Introduction of New Technologies properties. viz., Credit Cards / debit cards / Freezing of Assets under Section smart cards / gift cards 51A of the Unlawful Activities Almost all the Banks are engaged (Prevention) Act, 1967 in the business of issuing a variety of The Unlawful Activities (Prevention) Electronic Cards that are used by Act, 1967 (UAPA) has been amended by customers for buying goods and services, the Unlawful Activities (Prevention) drawing cash from ATMs, and can be Amendment Act, 2008. Government has used for electronic transfer of funds. issued an Order dated August 27, 2009 Banks are required to ensure full detailing the procedure for www.ijar.org.in 173 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] implementation of Section 51A of the EPPB. From 1st April 2018 Government Unlawful Activities (Prevention) Act, will take over the properties not entered 1967 relating to the purposes of in EPPB. prevention of, and for coping with Insolvency and Bankruptcy Board terrorist activities. Insolvency and Bankruptcy Board seeks Quality of counter-terrorism, not to consolidate and amend Laws relating currency crackdown, will prevent to reorganization as well as insolvency terrorism. On November 10, 2016 our resolution of corporate persons, prime minister said that demonetization partnership firms and individuals in a of high value currency notes was “a time-bound manner. Putting in place the decisive war against the menace of operational framework for insolvency corruption, black money and terrorism”. and bankruptcy Law, IBBI which has Social media claimed that the “PM had been established under the Insolvency nuked terror funding”. Subsequent and Bankruptcy Code is being assisted by discourses saw official assertions that a two advisory panels with inputs on “cashless economy” would end “black various aspects, including on service money” to make us “terror-free”. providers and corporate liquidation. But a “cashless economy” need not be According to a senior official, both “terror-free”. In November 2014, CNBC advisory committees have started conducted a survey of the 10 top deliberations on various matters. IBBI, “cashless” societies. It found Belgium to which expects to soon operationalize the be the world’s top cashless society with Insolvency and Bankruptcy Code, has 93 per cent non-cash consumer payments already notified three sets of regulations. and 83 per cent debit card use. France These rules are for Insolvency was second, then Canada, the UK, Professionals, Insolvency Agencies and Sweden, Australia, Holland, the US, Model Bye-Laws and Governing Board of Germany and South Korea. Insolvency Professional Agencies. Subject to certain conditions, advocates, E-Property Pass Book chartered accountants, company From 1st April 2017 all properties are secretaries and cost accountants can invalid for one year. One can’t sell or buy serve as insolvency professionals while any property until he / she register their certain classes of not-for-profit properties in the E-Property Pass Book. companies can act as insolvency EPBB will be linked with PAN, Aadhar professional agencies. online. Owner has to personally report A not-for-profit company, having with ownership proof to Sub-Registrar minimum net worth of Rs 10 crore, will office where special officers will enter all be eligible to be an insolvency property details in EPPB. professional agency. Such an entity will Once it is entered in EPPB properties have membership, monitoring, grievance citizens will become the owners of their redressal and disciplinary committees to property. Citizens will have one more regulate as well as have an oversight of special counter for emergency sellers, the professional members. mortgages, buyers where they can do exchange of properties but with full Conclusion and suggestion details of all properties. Up to 31 March The result of testing the hypothesis is 2018 all properties will be entered in that, the importance of examining www.ijar.org.in 174 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] consistency within the legal system force all Indians to think straight. That cannot be overstated. Consistency is the is the real challenge. ground upon which fundamental values of fairness are rooted. Assumed the References current status of India, it would be more Ashok V. Desai, “Reading street lights - meaningful to have uniformity of The correlation between nocturnal “rights”, given to all its citizens, which illumination and prosperity Writing on would also comprise of fortification of the wall, The Telegraph, Calcutta, India, economic rights, gender justice and most Tuesday , January 3 , 2017. importantly, education, culture and Ajay Chhibber, “Off the black mark religious freedoms of its citizens. But as Demonetisation won’t hurt ‘kala dhan’ of now, citizens are only being told of a — it will only damage economic growth”. uniformity of Law. It is important to Published: November 28, 2016 12:04 am know what those ideas will be, how they http://indianexpress.com/article/opinion/c could affect individual lives in the olumns/demonetisation-pm-modi-rs-500- Country and whether they will be at the rs-1000-black-money-4398603/ cost of national integration. However, Colonel Anil A Athale (retd), How simplified models of formalized system of demonetization will stop terror funding, Law may provide the fundamental November 29, 2016 14:40 IST. elements necessary to examine http://www.rediff.com/news/column/how- consistency within the Law while demonetisation-will-stop-terror- retaining the fundamental values of the funding/20161129.htm system. Even seven decades after Independence, Harish Damodaran, demonetization PM the areas of sustainable economic activity Modi black money terror funding and the traditional skills and income corruption. November 28, 2016 12:06 pm generation of the people who desperately http://indianexpress.com/article/explaine need to be included in the process of the d/demonetisation-gst-narendra-modi- country’s growth are grossly neglected. india-business-4398669/ There is a reason why the wise make a Happymon Jacob, Reimagining the distinction between justice and equality. liberal project, The Hindu, December Merely providing equal opportunities and 06, 2016. equal rights for all does not necessarily guarantee justice. When it comes to J. Russel, ‘The Critical Legal Studies Challenge to Contemporary Mainstream formulating public policies, therefore, a Ottawa Law Review one-size-fits-all approach is not the best Legal Philosophy’, , line of action. A Law that fails to ensure No. 18, p. 1, at p. 18; full-fledged justice to its citizens remains an unjust one. L. Fuller, Anatomy of Law, New York: Reining in black money, Frederick A. Praeger; London: The Pall enlarging the tax net and working Mall Press, 1968, 94. towards a digital future are worthwhile economic objectives. Far loftier is the bid to make India a more honest place and

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Empowering Differently Abled People through Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)-A Study in Warangal Rural District Lingudhari Rajeshwar Rao, Research Scholar, Dept. of Economics, Kakatiya University, Warangal, T.S Kadgina Subhash, Research Scholar, Dept. of Social Work, Osmania University, Hyderabad, T.S

Abstract: Despite a growing economy, a majority of the people in rural areas of our country live below the poverty line with limited employment opportunities. By addressing this, issue, MGNREGA aimed to ensure 100 days guaranteed job to poor rural household’s vis-à-vis food security, employment of village communities, and creating useful assets in rural areas. The approach is rights-based as the assumption here is that every adult has a right to basic employment opportunities at the statutory minimum wage. If this act is properly enacted and implemented through schemes, it may definitely be able to go long way to alleviate rural poverty. There is a common concern Disabled persons are among the most excluded ones in the development process of the country. While appreciating the genuine concern and effort of the Government to ensure employment, food and livelihood security for its rural citizens with the enactment of MGNREGA, it is unfortunate that differently abled people, who constitute the most vulnerable and poorest of the poor segment of society, still have not received adequate and proper attention in terms of accessing work under MGNREGS. India has one of the more progressive disability policy frameworks in the developing world. However, their remain huge challenges in operation al zing the policy framework .increasing the status and social and economic participation of people with disabilities would have positive effects on everyone, not just disabled people. Keywords: Poverty, MGNREGS, Disability, Mainstream and Empowerment Introduction: for the enhancement of livelihood security of the households in rural areas Ever since India achieved of the country, by providing at least one independence, poverty alleviation in hundred days of guaranteed wage rural areas became one of the major in employment in every financial year to all most all the five year plans of the every household whose adult members country. One of the major challenges volunteer to do unskilled manual work”. before successive governments has been The NREGA ensures on demand 100 provision of adequate remunerative days of employment in a year to a employment to the vast majority of rural household at the minimum wage. The workers who have been unemployed or NREGS is based on twin principles of mostly underemployed in meager universality and self-selection. subsistence livelihood activities. The National Rural Employment Guarantee The Act places enforceable Scheme of India was designed to “provide obligation on the State and gives power www.ijar.org.in 176 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] to rural laborers. As a legal right to and efficient policy intervention to work, NREGS contrasts with previous improve the lots of the disabled persons employment generation schemes in it is of utmost importance to get a clear several aspects. First and foremost, it idea of the dimension of disability in bestows entitlements to workers, in the India. Although government and the form of providing work for those who public sector would have to play a key demand within a time frame (15 days of role in this Endeavour, it may be neither applying for work) at a guaranteed feasible, nor desirable for them to do it wages, which was not the case with all. Further, there is wide heterogeneity earlier public works programmes. in the situation and the policy Secondly, the universal nature of the requirements of different groups of programme eliminates targeting errors. disabled persons in India. There are Thirdly, the process of implementation major differences in social attitudes to and community involvement (in the form different types of disability, coupled with of social audits) is expected to reduce variations due to gender, class, place of corruption and malpractices which form residence (rural/urban) etc. an important weakness in earlier The number of people with programmes. disabilities in India is substantial and likely to grow disability does not “go The guarantees enshrined in the away” as countries get richer. People Act are expected to ensure its with disabilities in India are subject to implementation as a binding deprivation in many dimensions of their responsibility of the government. Very lives. Social attitudes and stigma play an high expectations are placed on the important role in limiting the outcomes of the Act in terms of opportunities of disabled people for full protecting rural households from poverty participation in social and economy life, and hunger, reduction of rural-urban often even within their own families. migration, increasing opportunities of India has one of the more progressive employment for rural women, creating disability policy frameworks in the useful assets in rural areas, in changing developing world. However, their remain power equations in rural areas and in huge challenges in operational zing the activating and empowering Panchayati policy framework. Increasing the status Raj Institutions. To what extent all these and social and economic participation of are likely to be realized and what are the people with disabilities would have processes that would enable realization positive effects on everyone, not just assumes. Importance in analyzing the disabled people. India has a vibrant and implementation experience of the initial growing disability rights movement and years. civil society involvement in service Disability Scenario in India delivery for people with disabilities. While there is a long way to go, focusing There is a common concern that on “getting the basics right” on disability disabled persons are among the most policy would allow for significant excluded ones in the development progress in the foreseeable future. process of the country. For an effective

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Number of Disabled persons and their Composition: Census in India 2011

In the year 2011 of the persons with to his/her ability and qualifications will disability (PWD) about 69.4% belonged have to be given. This may also be in the to rural areas and only 30.5% were from form of services that are identified as urban areas. About 55.8% of disabled integral to the programme. Provisions of were male while only 44.2% were the Persons with Disabilities (Equal females. For the population of the Opportunities, Protection of Rights and country as a whole, 2.21% were found to Full Participation) Act, 1995 will be kept have one type of disability or the other. in view and implemented. Further, no MGNREGS and Differently abled reservation is provided to persons with People SC/ ST/OBC, etc under the scheme and the same is applied to persons with The Mahatma Gandhi National Rural disabilities. Though there is no Employment Guarantee Act reservation for Persons with Disabilities (MGNREGA) guarantees 100 days of under MGNREGA, but in the spirit of employment in a financial year to any Provisions of Persons with Disabilities rural household whose adult members (Equal Opportunities, Protection of are willing to do unskilled manual work. Rights and Full Participation) Act, 1995, The Act has come into force in 200 the Ministry of Rural Development selected districts of the country w.e.f. specifically monitors the coverage the 2nd February, 2006. All the districts of Persons with Disabilities under the Country have been brought under its MGNREGA. During 2015-16, four lakh ambit from April, 2008. The MGNREGA fifty nine thousand four hundred and is a demand driven Scheme requiring sixteen persons with different disabilities unskilled manual labour. Separate were covered under MGNREGA. earmarking of employment/ resources Objectives of Study have therefore, not been provided for The present study will be undertaken disabled persons. with the following and objective:- As per Operational Guidelines Para  To find out the impact of 5.5.10, if a rural Differently abled MGNREGS for the Empowerment of persons applies for work, work suitable person with disability;

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 To assess the progress of the number, 300 disabled are worked in the Persons with Disabilities under this year 2015-2016. The universe of the programme; study is 300 members in whom the  To know perceptions and views researcher took the random sample and of personnel working on this programme selected the 50 respondent’s i.e: 16% Methodology: (approximate) form the total universe. the researcher would like The researcher collected the primary to take evaluative type of research design data from the field using with interview and the researcher took only one mandal schedule, applying nominal statistical from Warangal rural district. i.e: tools for analyzing the data. Nekkonda mandal in this mandal the registered disabled are 607 in this total Mandal at a glance: Nekkonda Mandal in Employment Analysis for Disability Years Regd Disabled Disabled Disabled Members Working Working % 2011-12 607 334 55 2012-13 607 287 47 2013-14 607 250 41 2014-15 607 263 43 2015-16 607 300 49

The above table shows that, out of 50 respondents there are majority of them are male population consisting of 28 members (56%) and the remaining are female population consist of 22 members (44%) . the table explains us that the male population are dominating, grabbing the opportunity and benefiting out of work under the MGNREG Scheme. Age

The table no: 02 present the distribution given category. The age group of (31-40) of age variation of the respondents under & (51 and above) carried equal share of

www.ijar.org.in 179 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] percentage consist of 28% which means 14 respondents each. And also the Separ remaining age groups that are (18-30) & ate (41-50) are also having the same 14% percentage i.e: 22% (11 respondents Un each). In which the researcher observed marri that the younger generation are giving ed Marri less priority for work in this programme 24% ed Educational Status 62%

Secon TechnU.GP.G The above table shows that, more dary ical2%0% than half of the respondents are married, 28% 0% i. e: 62% (31 respondents), 12% of the Illiter respondents are unmarried, 7% of the Prima ate population are separated from their ry 54% families. 16% The family sizes of the respondents are consists of (0-2 The above table shows that, members) i. e: 32 respondents are having majority of the respondents were 0-2 family member in their family, the illiterates, and the percentage is 54% percentage is 64%. More than (2-5 (27). And the 28% of the respondents are members) consist of 8respondents i.e: secondary level of educational status. 16%. (6 and above) are 10 respondents Remaining are primary consists 8%, the i.e: 20%. The researcher find that irony of the study is only one person that disabled are having single status in their is 2%, respondent having undergraduate families and living their own. education level. In this we come to Types of Disabilities. understand that how the disabled populations are backward in the Other education. This is also one of the factors HH 4% that they can’t get the employment 18% opportunity and awareness among such schemes like MGNREGS. VH Caste Composition: OH The table no: 04 14% 64% explains us that, backward class were represents more than half of the percentage. i.e: 33 respondents (66%) and remaining were schedule casts 6 The above table represents that, respondents having (12%) , schedule more than half of the population or tribes 6%, minorities and others are respondents are orthopedically occupied 3rd place in the study. handicapped the percentage consists 64% the number of respondents are 32. Marriage Status. Simultaneously visually handicapped are 7 numbers i.e: 14%. The second highest percentage are hearing handicapped the

www.ijar.org.in 180 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] percentage consists of 18%., others are The study revealed that the wage occupied only 4%. The respondents are payment as per the guide lines given by only 2. The table clearly explains us that the Act ( 70% of work full payment ) 14 the OH population is grabbing the respondents i.e : 28% are said yes, they opportunity in the MGNREGS get the full amount of payment as per the programme. The remaining of them are prescribed guidelines. And the majority backward in getting the employment in of them 36 respondents are said no. EGS. consists of 72%. They are not getting the Table No: 07. Disability Percentage wages as per the guidelines given by of Status MGNREGs Act. The researcher asked about their 40-50 first aid kit, and the response of the 8% respondents is like this. The majority of them are not getting any first aid facility 81-100 i.e; 30 respondents are said no. Consist 51-60 26% of 60%. Reaming are explained 20 22% respondents, 40are getting first aid 71-80 61-70 facility at work place. 8% 36% In this study, the researcher asked the question, is there any progress is there in your life then the majority of the respondents reveled that it is poor The above table explains us that, response i. e; 27respondents (54%). And the percentage of the disability. 18 the second height was average consist of respondents are consists of 36%. (61-70 20 respondents (40%). Only 2% are Pwd percentage) That is less than half of replied good, lastly only one respondents the population in the study. The responses that his life was progressive remaining are the second height of after getting employment in MGNREGS. percentage (81-100 Pwd percentage) 13 Where it comes to EGS is it useful for respondents i.e : 26% , the third place Disabled then 35 respondents (70%) are occupied by (51-60 Pwd percentage) 11 replied that it is useful remaining said respondents are 22%., last place that 15 respondents (30%) were said no. occupied by both (40-50 Pwd percentage) Suggestions: & (71-80 Pwd percentage) 4 respondents i.e: 8%. each. the researcher find that  If the EGS should generate the the more disability percent of full working days for disabled, so populations are not getting opportunities that they can get maximum in this programme. benefit out of the scheme, and When it comes to other related pay the unemployed dole for information in this study is, when it every disabled those who are comes to the special card system in EGS. having EGS cards. 45 respondents that is 90% are said yes  If any disabled person did 50% of and 5 respondents are said no. the EGS the work at work place the EGS personnel are not giving any special cards for PWDs. www.ijar.org.in 181 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

personnel should pay the full Ministry of Law and Justice amount i. e : 100% of the wage. (Legislative Department), Government of India, September 7,  The EGS personnel to see to that 2005, New Delhi. the work site should be nearer to the disabled person 4. Government of Karnataka, (2005) Conclusion: "Karnataka Human Development Report 2005, Investing in Human The government of India has introduced Development" Planning and the programme called MGNREGS as to Statistics Department, GoK, reduce the poverty levels in all walks of Bangalore life in India. Based on the Act the persons with disability are also included 5. A Situational analysis study on in the scheme by utilizing this scheme, Differently abled persons in the PWDs is able to come out of their MGNREGS of Burdwan District. poverty line and get rid of their day to The District Magistrate and day problems. And sustain themselves District Programme Co-ordinator with economical empowerment and MGNREGS, Burdwan of West social empowerment by getting Bengal. employment in this programme. The study revealed that the wages and the 6. Dr. K P Kumaran, Report 2013, working days of EGS Should rise from Inclusion of Persons with 150 days to 225 day in a year especially Disabilities Under MGNREGS: A for disabled population. The EGS study across three States. National personnel also give the prior priority to Institute of Rural Development, the all the disabled those who are having (Ministry of rural Development, job cards to come easily to get the work Department of Rural Development, at nearest places too. The MGNREGS Government of India), Act should focus on employment dole for Rajendranagar Hyderabad. disabled person to get rid from their 7. Disabled Persons. Krishna VV, economical status and live their life in Dutt BSV, Roa KH New Delhi: mainstreamed with good manner. References Discovery Publishing House 2001. 8. Helping the Handicapped: 1. www.rural.nic.in, www.nrega.nic. Problems and Prospects New Ministry of rural Development, Delhi: Desai AN Allied‘Publication Department of Rural Development, House 1990. Government of India. 4th Edition 2013. 2. Report of the working Group on Specific Needs of Special Categories under MGNREGA, July-2010

3. Ministry of Law and Justice (2005), "The Gazette of India" Extraordinary part 11- Section 1

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Economic empowerment of tribal women in Telangana – A study

Maloth Venkanna, Department of Economics, Kakatiya University, Warangal, Telangana State

Introduction collection and marketing of firewood are generally the domain of tribal women. In India women are discriminated due to They sell it at local shandies and several historical, religious and other whatever income they have, they reasons, she is made to undergo the immediately spend it on meeting the feelings of being inferior and feeble. She basic requirements such as rice, pulse, is denied the prospects for personal edible oil, soap, detergent powder, expression. It was reported during tobacco, and so on. women’s workshop that women’s Indian society is marked by inequality, “sexuality is suppressed, their labour discrimination, exploitation, domination, exploited, their property and other basic and deprivation. What is even more human rights denied to them and their striking is the fact that such thwarting humanity demolished”. The so-called ‘ societal features are mostly based on the national movement’ has further lines of caste, tribe, religion, language, “displaced and marginalized women region, etc. There is hardly any segment while at the same time, it has turned or dimension of life that are not them into commodities, not just in terms characterized by one or more of such of being used as machines for producing features. Even children have been unable children, doing household work and even to escape the all-pervasive effects of such doing jobs outside but always controlled features. Tribals are one of the most by men to whom they belong” exploited and deprived sections of the The status of the tribal women usually Indian society. All development depends on the economic roles they play. indicators show them to be the most The tribals in the past were usually excluded from mainstream Indian society forest dwellers and their livelihood to a despite the fact that various kinds of great extent depended on the food- policies and programs have been pursued gathering economy. More than the men, and executed for their social and the women walked long distances to economic upliftment in post- fetch wood and fodder. Besides, they also Independence India. Needless to say that collected fruits, roots, and tubers, lac, exclusion from the fruits of development gums and leaves for self-consumption has adversely affected the quality of life and sale. The men also complemented of the tribal people. Objective of the Study them by collecting timber and logs. They climbed the trees to shake down the The Main objective of the paper brings fruits that were gathered on the ground about the Policy and advancement, by women. As there has been large-scale development and empowerment of deforestation, women have to slog harder women. The Policy will be widely to retain the gathering economy. In the disseminated so as to encourage active tribal areas of Khammam in Telangana, participation of women

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Methodology chief ministers, women president, The present study completely based on different political parties leader, well secondary data collected from HRD, establish businessmen etc. Women are CEDAW NFHS, Census of India, being regarded these days as a sine-quo- Registrar, and General in India. none of progress for a country. Women Empowerment in India: A Status of Tribal women in Brief Discussion Telanganaan overview Safeguard the rights and legal The government of India has introduced entitlement of women. The 73rd &74th several welfare schemes, laws, and acts Amendments (1993) to the constitution for theuplift of Scheduled Tribes (STs); of India have provided some special the status of tribal women continues to powers to women that for reservation of remain pathetic in remote villages. seats (33%), whereas the report HRD as Womenfolk and girls of primitive tribal March2011 shows that the legislatures groups are suffering from malnutrition, with the highest percentage of women In low literacy, poverty and lack of India “The New Panchayat Raj” is the information on government activities part of the effort to empower women at and welfare schemes. The status of least at the village level. The government women in a society is a significant of India has ratified various international reflection of the level of social justice in conventions and human rights that society. Women’s status is often instruments committing to secure equal described in terms of their level of rights to women. These are CEDAW income, employment, education, health, (1993), the Mexico Plan of Action (1975), and fertility as well as their roles within the Nairobi Forward Looking Strategies the family, the community, and society. (1985), the Beijing Declaration as well as In tribal communities, the role of women the platform for Action (1995) and other is substantial and crucial. They such instruments. The year of 2001 was constitute about half the total population observed as the year of women’s but in tribal society, women are more empowerment. During the year, a important than in other social groups landmark document has been adopted, because they workharder and the family ‘the National Policy for the economy and management depends on empowerment of women.’ For the them. Even after industrialization and beneficiaries of the women, the the resultant commercialization government has been adopted different swamped the tribal economy, women schemes and programs i.e. the National continued to play a significant role. A Credit Fund for Women (1993), Food and collection of minor forest produce is done Nutrition Board (FNB), Information and mostly by women and children. Many Mass Education (IMF) etc. The most also work as laborers in industries, positive development last few years has households, and construction, been the growing involvement of women contributing to their family income. in the Panchayat Raj institutions. There Despite exploitation by contractors and are many elected women representatives managers, tribals are more sincere and at the village council level. At present all honest than non-tribals. over India. At the central and state levels to women are progressively making a Tribals have been residing in forest areas difference. Today we have seen women for generations, cultivating land and www.ijar.org.in 184 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] collecting non-timber forest produce. As their responsibility so they operate per the Forest Survey of India Report, closely with the forests from where they 2003, 60.04% of the 63% forest covers of get water, fuel and minor products the country and 63% of dense forests lie including edible fruits, tubers, flowers, in 187 tribal districts, though the vegetables and berries geographical area of these districts is just Tribal women work as men’s partners in 33.6% of the country’s geographical area. agriculture, yet their status remains the Out of 58 districts, which have more same. Tribal women work very hard for than 67% of their area under forest the livelihood of the family but live a cover, 51 are tribal districts. A poor life, in spite of their many comparison of the 2001 and 2003 contributions in the house and on the assessments of forest cover in tribal farm. Tribal women are important for districts shows a net increase of 321,100 the improvement and progress of tribals. hectares underscoring a very strong They are the pivot of tribal agriculture, symbiotic relationship between tribals performing many household and and forests and of tribals being at the agricultural jobs. Without them, tribal forefront of conservation regimes. While welfare in agriculture is meaningless. tribal women have more say in family Tribal Women in Ecological Development decisions than their non-tribal Environment and sustainable counterparts, they also share more development are firmly on the global responsibilities. Preparing food and agenda. Ecofeminism is to be viewed in providing for drinking water is solely this context. Table-1: Telangana State Tribal Women &General women Literacy Rate and Work Participationin Agriculture General women Tribal women Work Work SL.NO District Literacy Literacy Participation Participation Rate Rate in Agriculture in Agriculture 1 Adilabad 51.3 41.9 41.37 52.7 2 Nizamabad 51.5 44.3 34.25 52.8 3 Karimnagar 54.8 40.0 42.19 51.9 4 Meadak 51.4 19.1 32.04 51.0 5 Hyderabad 79.4 27.2 62.08 23.8 6 Ranga Reddy 69.4 47.1 44.87 39.9 7 Mahabubnagar 44.7 44.3 30.44 53.6 8 Nalgonda 54.2 44.3 35.66 54.8 9 Warangal 55.7 42.5 38.96 54.4 10 Khammam 57.4 43.2 43.67 55.2 Total 57.9 38.4 39.44 52.6 Source: Directorate of Economics and Statistics, Government of Telangana, Hyderabad. Table-1 shows that the work agricultural labouris high among participation of general women 38.4 scheduled tribes is higher than the Percent and tribal women 52.6 percent general women in Telangana State. The in Agriculture cultivators and Literacy rates of various districts of

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Telangana state in terms of tribal women Likewise in the centralized political and general women classes are given in systems men had high status. Men in above table the literacy rate of general most societies contribute more to women is 57.9 percent and thetribal primary subsistence activities, as women women literacy rate is 52.6 percent. have infant and child care Eco-feminism points to the need for an responsibilities. However, women integrated view of nature, culture and contribute substantially to primary gender issues. An appropriate strategy subsistence activities that depend heavily for development would be one which is on gathering and horticulture and in not only ecologically sustainable but which men are away on labor or pastoral takes the interests of women into duties while subsistence work has to be consideration. The problems of ecological done. When primary and secondary distress and climatic changes require subsistence activities are counted, immediate attention with a specific women work more than men. formula to achieve ecological safety. All An Overview on Economic the initiatives were taken under UNEP, Empowerment of tribal women biosphere programs, various governmental and non-governmental Common Interest Groups had actions lag behind since none was been formed with the tribal women specifically empowered to achieve eco- whose economic activity interests were of equilibrium and ecological security. common nature. The educated tribal Women provide sustenance to the family youth had been identified and trained as and community by their judicious use resource persons who work with the and management of natural resources. common interest groups by sharing of Women are consumers, producers, technology for achieving capacity educators and caretakers of their building and value addition of their families, playing an important role in a products. The district federation is sustainable eco-system in the present engaged in collective marketing of their and future. However, environmental produce. It also monitors the activity in deterioration has a negative effect on the shandies, particularly the weight health and quality of life, especially for measurement of products. This is to girls and women. A policy of conservation improve the harvesting, post harvesting, of natural resources will be successful value addition, quality control processes only if women are integrated into all at thehousehold level. This, in turn, programs and policy making. creates better returns on investment for There are various hypotheses about why the target communities and promotes women have relatively high or low sustainable resource utilization in surrounding areas. status. The common premise is that Reasons for the Economic women status is high when they Empowerment of Tribal Women contribute substantially to primary subsistence activities. Women position is Today we have noticed different low in the societies where food getting is Acts and Schemes of the central entirely men’s job like hunting, herding government as well as thestate or intensive agriculture. In the historical government to empower the women of times when warfare was essential, men India. But in India women are were more esteemed than women. discriminated and marginalized at every www.ijar.org.in 186 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] level of the society whether it is social representatives across districts and participation, political participation, states. Such interaction would help them economic participation, access to to exchange their ideas on performance education, and also reproductive and failure of local self-government healthcare. Women are found to be institutional framework. Adequate economically very poor all over the India. information relating to various programs A few women are engaged in services and and activities including economic other activities. So, they need economic incentive oriented schemes promoted by power to stand on their own legs on par the Government should be made with men. Another hand, it has been available to women for their knowledge observed that women are found to be less and involvement and implementation of literate than men. According to 2011 such schemes, programs etc. The Census, therate of literacy among men in majority of women had no independent India is found to be 82.14% whereas it is source of earning. It is suggested that the only 65.46% among women. Thus, Government should run programs of increasing education among women is of such kind wherein the programs very important in empowering them. It generate independent income earning has also noticed that some of thewomen thestatus of women. are too weak to work. They consume less References food but work more. Therefore, from the 1. Indian Council of Medical Research. health point of view, women folk who are The health of Tribal Population in to be weaker are to be made stronger. India; Results of Some ICMR Another problem is that workplace Studies. Indian Council of Medical harassment of women. There are so Research. New Delhi. p1. 1998 many cases of rape, kidnapping of girl, 2. Almas A. Health status of tribals of dowry harassment, and so on. For these Orissa. Orissa Voluntary Health reasons, they require empowerment of Association. Bhubaneswar. p 1. 1999. all kinds in order to protect themselves 3. Kupputhai U, Mallika N. Nutritional and to secure their purity and dignity. To Status of Adult women belonging to sum up, women empowerment cannot be Khond, Gadaba and Porja tribes of possible unless women come with and Andhra Pradesh. The Indian help to self-empower themselves. There Journal of Nutrition and Dietetics is a need to formulate reducing feminized 1993; 30:173-179. poverty, promoting theeducation of 4. Samuel LK, Rao PSS. Socio- women, and prevention and elimination Economic Differentials in Mothers at of violence against women. Risk Based on PrePregnancyWeights and Heights. Indian Journal of Conclusion Medical Research 1992; 96:159-67. 5. Kumar, Dharmendra and Training should be given to PrakashMoirangthem, 2009, women for capacity building among Proselytisation of Tribal Society: A them. Women should be taught not to Political Agenda in Dharmendra keep theundue pressure of their family Kumar and Yemuna Sunny (ed.), members. Workshops and seminars Proselytisation in India: The Process should be organized by the Government of Hinduisation in Tribal Societies, for regular interaction among women Aakar Books, Delhi. www.ijar.org.in 187 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

6. Maharatna, Arup, 2005, Demographic Perspectives on India’s Tribes, Oxford University Press. 7. Mathur, Ashok, 2008, an Overview of the Jharkhand Economy and Perspectives for Human Development at National Seminar on Growth and Human Development in Jharkhand, July 4-5, 2008. 8. Roy Burman, B.K., 1993, Tribal Population: Interface of Historical Ecology and Political Economy in M. Miri (ed.), Continuity and Change in Tribal Society, op.cit. 9. Roy Burman, 1988, “Challenges of Development and Tribal Women” in J.P. Singh (ed.), Tribal Women and Development, Rawat Publications, Jaipur. 10. Roy, S.C., 2004 (Reprint), the Mundas and Their Country, Crown Publications, Ranchi. Sachchidananda, 1988, “Tribal Women in the Throes of Development”, 11 .Batra, P. (2005) Voice and Agency of Teachers: Missing Link in National Curriculum Framework 2005. Economic and Political Weekly, 40(40): pp. 4347- 4356. 12. Census of India (2002) Primary Census Abstract: Census of India 2001. New Delhi: Government of India.

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Health education in Telangana state

Matangi Murali, Dept of Political Science, Kakatiya University, Warangal, Telangana

India has a shortfall of critical mass of Introduction public health professionals. In order to The new agenda for Public Health in respond to this gap. There have been India includes the epidemiological efforts to improve the quantity and transition, demographical transition, quality of public health professionals in environmental changes and social this country in recent past. In this determinants of health. Based on the context, this manuscript attempts to principles outlined at Alma-Ata in 1978, document the historical evolution of there is an urgent call for revitalizing public health education in India and the primary health care in order to meet recent trends related to it. The evolution these challenges. The role of the of public health education in India can be government in influencing population traced back to 1835 with the health is not limited within the health establishment of the Calcutta Medical sector but also by various sectors outside College in West Bengal in order to fulfill the health systems. This article is a the growing need for health literature review of the existing professionals. A new department to cater government machinery for public health to education and health was constituted needs in India, its success, limitations in 1912, with public health physicians in and future scope. Health system medical colleges were entrusted the strengthening, human resource responsibility of teaching hygiene development and capacity building and regulation in public health are important Concept of Health Education areas within the health sector. India is presently facing unique public health Health education is a term commonly challenges in terms of emergence of used and referred to by health infectious diseases, rising trends of professionals. Health education is chronic diseases, and health systems indispensable in achieving individual and related issues. Additionally, maternal collective health. There is no single and child health related indicators as acceptable definition of health education articulated in the Millennium which is normally perceived as an Development Goals are also distantly instrument of changing attitudes and placed. It is well recognized that behavioural patterns of people toward strengthening health systems through attaining better health status through reforms and improving capacities of adoption of health innovations and health workforce can help us address practices which are tested and tried. these challenges. Adam Smith stated World Health Organization defines it that, “the capacities of individuals thus: “Health education is the part of depend on their access to education,” health care that is concerned with thus reiterating a strong linkage between promoting healthy behaviour” Health the health workforce and public health education is the translation of what is education. It is well documented that known about health into desirable

www.ijar.org.in 189 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] individual and community behaviour government agencies in the field of patterns by means of an educational health education, developing health process. John M Last defines health education syllabi for different target communication as "the process by which groups and collaborating with individuals and groups of people learn to international agencies in promoting behave in a manner conducive to the health education. The School Health promotion, maintenance or restoration of Education Division of CHEB provides health” Green L W observes: “Any and monitors the centrally sponsored combination of learning opportunities school health service scheme since April and teaching activities designed to 1977 meant for primary school students facilitate voluntary adaptation of in rural areas. CHEB also works with behaviour that are conducive to health” UGC, NCERT, Board of Secondary The definition adapted by the National Education and other agencies in Conference on Preventive Medicine in imparting health education by enlisting USA reads: “Health education is a the participation of universities, colleges process that informs, motivates and and schools. helps people to adopt and maintain healthy practices and lifestyles, Role of State Governments, Union advocates environmental changes as Territories and Local Self needed to facilitate this goal and Government conducts professional training and research to the same end” Thus, health School health services are managed by education encompasses all strategies and respective State Governments and Union activities which are meant of the Territories. The attainment of better health status of the aim of school health programme is to people. provide comprehensive health care to all school children in both urban and rural Health Education in India areas. It comprises of medical

examination, treatment, preventive Role of Central Government medicine, follow-up action, sanitation, The Government of India is responsible hygiene, safe environment and other for providing countrywide education to aspects of health management. There is a the people on provision for health check-up twice in a health care and management. The year undertaken by government or Directorate General of Health Services private agencies under the supervision of set up Central Health Education Bureau a Medical Officer who is in charge of (CHEB) in 1956 to coordinate health medical inspection. Medical fee is education services through various collected in schools for the purpose of divisions in the country. The goals and health care which is compulsory. This objectives of the division include arrangement is made with a view to educating the people about health plans bring about awareness among parents and programmes, training health and teachers. The Primary Health educators and workers, supplying health Centers of Karnataka State implement education materials, conducting health the National School Health Programme. research activities, providing technical The local-self government bodies are also assistance to government and non- involved at the grassroots level health www.ijar.org.in 190 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] education activities at district, block and Objectives village panchayat levels. To encourage people to adopt and sustain health promoting life style and practices; Role of Educational Institutions To promote the proper use of health services available to them; Health education is indeed an inter- To arouse interest, provide new disciplinary approach which draws knowledge, improve skills and change contents and initiatives attitudes in making rational from physical, biological, medical and decisions to solve their own problems. behavioural sciences. Health instruction To Improved access to quality is not considered a part of the total healthcare, particularly women, children, school curriculum. Health instruction and the poor by promoting integration, component is missing from primary decentralization, and encouraging school to university levels in India. community participation. Formal health education programmes are not designed and implemented in our Methods and Materials country. Significant health aspects such The data usage in the appropriate places, as health care, nutrition, sanitation, secondary data are also collected from hygiene, preventive medicine, journal, books, reports, and various community health, environment documents and related publications. protection, drug addiction, mental health, prevention of AIDS and so on are Discussions not covered systematically by our schools, colleges and universities. The Twelfth Five Year plan covering Healthy habits are not cultivated by the 2012-2017 was formulated based on the students due to lack of health education. recommendation of a High Level Experts Systematically health instruction is not Group (HLEG) and other stakeholder imparted on mandatory and regular consultations. The long term objective of basis. The students do not get the benefit this strategy is to establish a system of of incidental teaching on health care Universal Health Coverage (UHC) in the resources and methods. Printed country. Key points include: materials, audio-visual programmes, 1. Substantial expansion and demonstrations, exhibitions, poster strengthening of public sector health campaigns, group discussions, lecture care system, freeing the vulnerable programmes, field trips, health clubs and population from dependence on high cost other health instructional opportunities and often unreachable private sector are not made available to the students at health care system. various levels. Very few health 2. Health sector expenditure by universities and medical colleges are central government and state imparting professional health education government, both plan and non-plan, will and training. Thus, health education in have to be substantially increased by the India is not imparted at various levels twelfth five-year plan. It was increased formally or informally to the best of the from 0.94 per cent of GDP in tenth plan satisfaction of students, parents, to 1.04 per cent in eleventh plan. The teachers and other sections of society. provision of clean drinking water and sanitation as one of the principal factors www.ijar.org.in 191 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] in control of diseases is well established 6. In order to increase the from the history of industrialised availability of skilled human resources, a countries and it should have high large expansion of medical schools, priority in health related resource nursing colleges, and so on, is therefore allocation. The expenditure on health is necessary and public sector medical should increased to 2.5 per cent of GDP schools must play a major role in the by the end of Twelfth Five Year Plan. process. Special effort will be made to 3. Financial and managerial system expand medical education in states which will be redesigned to ensure efficient are under-served. In addition, a massive utilisation of available resources and effort will be made to recruit and train achieve better health outcome. paramedical and community level health Coordinated delivery of services within workers. and across sectors, delegation matched 7. The multiplicity of Central sector with accountability, fostering a spirit of or Centrally Sponsored Schemes has innovation are some of the measures constrained the flexibility of states to proposed. make need based plans or deploy their 4. Increasing the cooperation resources in the most efficient manner. between private and public sector health The way forward is to focus on care providers to achieve health goals. strengthening the pillars of the health This will include contracting in of system, so that it can prevent, detect and services for gap filling, and various forms manage each of the unique challenges of effectively regulated and that different parts of the country face. managed Public-Private Partnership, 8. A series of prescription drugs while also ensuring that there is no reforms, promotion of essential, generic compromise in terms of standards of medicine and making these universally delivery and that the incentive structure available free of cost to all patients in does not undermine health care public facilities as a part of the Essential objectives. Health Package will be a priority. 5. The present Rashtriya Swasthya 9. Effective regulation in medical Bhima Yojana (RSBY) which provides practice, public health, food and drugs is cash less in-patient treatment through essential to safeguard people against an insurance based system should be risks and unethical practices. This is reformed to enable access to a continuum especially so given the information gaps of comprehensive primary, secondary in the health sector which make it and tertiary care. In twelfth plan period difficult for individual to make reasoned entire Below Poverty Line(BPL) choices. population will be covered through RSBY 10. The health system in the Twelfth scheme. In planning health care Plan will continue to have a mix of public structure for the future, it is desirable to and private service providers. The public move from a 'fee-for-service' mechanism, sector health services need to be to address the issue of fragmentation of strengthened to deliver both public services that works to the detriment of health related and clinical services. The preventive and primary care and also to public and private sectors also need to reduce the scope of fraud and induced coordinate for the delivery of a demand. continuum of care. A strong regulatory system would supervise the quality of www.ijar.org.in 192 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected] services delivered. Standard treatment felicitate better modifications; n) Media guidelines should form the basis of institutions could be persuaded to clinical care across public and private provide adequate health education sectors, with the adequate monitoring by services regularly on a priority basis by the regulatory bodies to improve the increasing time and space; o) NGOs quality and control the cost of care, should also actively participate in health campaigns by providing adequate a) A national health education publicity and advertising support; p) policy is necessary to prepare grounds for Policy makers, health administrators, nation-wide health education b) Health media professionals and academicians education should be accorded a place of can be involved in directing health pride and treated as an independent communication services. subject on par with other at National level, state level and grassroots levels; Conclusion and Suggestion d) Co-ordination committees should be established to implement health The policy makers, health education programmes at central, state administrators, health educationists, and grassroots levels; e) There should be media owners and professionals and regionspecific health curricula which fits organizers of NGOs have to accord a into ground realities; f) Health educators place of pride to health education which should be trained and recruited from is a neglected sector. Health education primary to higher education levels; g) A must emerge as a critical factor in the specialized cadre of health process of health development in communicators is of utmost importance particular and national development in in mass media organizations; h) Multi- general. Compulsory health education media campaigns should be envisaged as will go a long way in improving the a holistic approach to health; i) The health status of people. So long as health government media networks should be education remains neglected, the dream decentralized with a view to provide of 'Health for All By 2000 AD' would sustainable health education services remain unfulfilled. As Michael Traber informally; j) Outdoor media which are once observed, people cannot develop or more effective channels of health attain their full potential if they are cut education especially in rural areas should off from communication 9. The be utilized adequately for health government, media institutions, promotion; k) Newspapers and television academic institutions, NGOs, research which are accessible to a majority of and development organizations have to people should get government sponsored work in close collaboration toward health advertisement among mass designing an effective health education media; l) Health education messages system in the country. should be formulated by experts in communication. Using simple language, authentic facts, local idioms and phrases Reference and attention compellers can enhance 1. Director, Public Health Education, the quality of health messages; m) Public Health Foundation of India, ISID, Formal evaluation of health education 4, Institutional Area, Vasant Kunj, New services is required at various to Delhi – 110 070, India www.ijar.org.in 193 International Journal of Academic Research ISSN: 2348-7666; Vol.4, Issue-1(8), January, 2017 Impact Factor: 4.535; Email: [email protected]

2. Manager – Academic Programs and 8. NIHAE; A Guide to Communication Adjunct Lecturer, Public Health System in Hospitals, Technical Report Foundation of India, New Delhi 16,Glossary, p. 33. 3. K.MARICHAMY (2014): Tactful 9. Green L W (1979); International Management Research Journal. Vol. 2 , Journal of Health Education, 22 pp. 161 Issue. 5 , Feb 2014 – 168. http://12thplan.gov.in/ 10. Somers, Anne R (1977); Preventive 4. .Hygiene; The International Journal Medicine 6(3) 406. of Health Education, 1988. 11. Illanilam, J V (2002), The Media and 5. Philip, Goetz (1989); The New World the Environment, Journal of Encyclopaedia Britannica Inc., Vol 12, p. Communication Studies, Vol. No. 2 257. 12. Grishm (Summer) April – June 2002, 6. Doris, Ruslink (1963); Family Health pp. 91-92. and Home, Mac Millian Company, New 13. National Rural Health Mission York, p.11. (NRHM), Ministry of Health and Family 7. WHO (1988); Education for Health; A Welfare-2013-report Manual on Health Education in Primary Health Care, p. 9.

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