Issues facing india
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Issues facing India. Naxalism. Terrorism. China. Corrupt Media. Unemployment. Infrastructure. Quality of Education. Environmental degradation. Business Environment. Dependence on Agriculture. Inefficient Police. Crimes against women. Poverty. Slow Judiciary.

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Issues facing india

Issues facing India


Issues facing india

Naxalism

Terrorism

China

Corrupt Media

Unemployment

Infrastructure

Quality of Education

Environmental

degradation

Business Environment

Dependence on

Agriculture

Inefficient Police

Crimes against women

Poverty

Slow Judiciary

Ineffective system of

Justice

Population growth

Over Regulation!

Votebank Politics

Corruption


Issues facing india

As things stand...

Poor Business

Environment

Unemplyment

Poor Educational

standards

Poor Implementation

of Govt. Policies

Poverty

Political control over

Govt. Policies

Poor Agricultural

Productivity

Status of Women

Ailing

Judicial system

Corruption


Agenda

Agenda

  • Political Leadership

  • Business Environment

  • Poverty

  • Education

  • Law and Order


Global ranks

Global ranks

  • Per capita GDP: 141

  • Human Development Index: 136

  • Ease of doing business Index: 134

  • Corruption Perception Index: 94

  • 4th most dangerous place for women (after Afghanistan, Congo, and Pakistan)


Issues facing india

Political Leadership


Issues facing india

India grows despite and not because of the Government!


Political leadership

Political Leadership

  • Control over executive and judiciary

  • Populism inherent to Democracy

  • Corruption

  • Electoral System

  • Coalition Dharma


Control over executive and judiciary

Control over Executive and Judiciary

  • Civil Services

  • CBI

  • Vigilance

  • Police

  • Issues with Judiciary


Populism inherent to democracy

Populism inherent to Democracy


Corruption can it be solved

Corruption: Can it be solved?

  • Judicial & Police reforms and Independence of the Anti-corruption wings

  • Privatization

  • RTI

  • Use of IT

  • Initiative by private players

  • Income tax reforms

  • Simplification of the laws, lesser role of beureaucracy.

  • Protection to whistle blowers


Political leadership electoral system

Political Leadership: Electoral System


Coalition dharma

Coalition Dharma

  • Ideological differences – fractured policy debate

  • Blackmail

  • Uncertain fate of the govt


Representation of people bill 1951

Representation of People Bill, 1951

that should be "torn and thrown out".


Representation of people bill 19511

Representation of People Bill, 1951

that should be "torn and thrown out".


Business environment

Business Environment


Growth rates of india and china

Growth rates of India and China

  • Growth rates of China, S. Korea, Taiwan, India

  • Infrastructure growth


Poor infrastructure

Poor Infrastructure

  • Growth rates of China, S. Korea, Taiwan, India

  • Infrastructure growth


Slow reform process

Slow Reform Process

  • Refrain from touching politically sensitive areas

    • Land Acquisition – New LARR Policy, 2013

    • Labour Laws

    • Tax rates - GST

    • FDI in Multibrand Retail


Divergent state policies

Divergent State Policies

  • Example: West Bengal / Gujarat / Kerala / Maharashtra / MP / UP / Bihar

  • Difference in the style of functioning leads to different growth trajectories.


Business politician nexus

Business-politician Nexus

Business control over policy making, media, implementation etc.

Creates


Bureaucratic inefficiency

Bureaucratic Inefficiency

  • Scale of implementation

  • Performance measurement metrices

  • Political control

  • Ill conceived policies

  • Corruption


Business environment government initiative

Business Environment: Government Initiative

  • New R&R Policy

  • Thrust areas/sectors, priority sector lending

  • Creating infrastructure through PPP, BOT, FDI etc.

  • Tax holidays, single window clearance

  • Micro-finance


Land acquisition rehabilitation and resettlement policy 2013

Land Acquisition, Rehabilitation and Resettlement Policy, 2013

  • Heavily loaded in favour of land owners

  • Huge mark up to the historical market price to determine compensation amounts

  • Numerous entitlements to landowners including permanent job and upfront payment

  • Prohibiting the use of fertile agricultural land (beyond 5% per district) may be counter productive.


Issues facing india

“Socialism is the destiny of any society. But it must pass through Capitalism first.”


Agenda1

Agenda

  • Poverty

  • Business Environment

  • Education

  • Political Leadership

  • Law and Order


Poverty

Poverty

  • Population below poverty line: 29.8%

  • World Hunger Index Rank: 94 (of 119)

  • 43% Indian children under 5 are underweight and 58% stunted as of 2008 - the highest in the world

Sector wise contribution to GDP


Govt initiative subsidies

Govt Initiative: Subsidies

Money granted by the Government to keep down the prices of commodities.

Issues:

  • Opportunity cost of money

  • PDS losses

  • Market distortions

  • Inclusion/exclusion errors

  • Environmental impact


Subsidies in india alternative

Subsidies in India: Alternative

  • Direct Benefits Transfer Scheme

    • Bolsa Familia Programme

  • Implementation

    • UID Programme

    • Aadhaar Integration, ERP Integration and Integration with nodal bank and payment gateways


Subsidies in india alternative1

Subsidies in India: Alternative

  • Direct Benefits Transfer Scheme

    • Conditional Cash Transfer

    • Bolsa Familia Programme

  • Implementation

    • UID Programme

    • Aadhaar Integration, ERP Integration and Integration with nodal bank and payment gateways

    • Direct transfer of Subsidy through state govt followed by UID based benefit transfer to the targets


Dbts risks

DBTS: Risks

  • Proper Identification of beneficiaries

  • Addressing the liquidity constraint

  • Price indexing of the subsidies

  • Controlling the overall scale of expenditure

  • Black marketing


Govt initiative food security bill

Govt Initiative: Food Security Bill

  • Provision of subsidized food grain for 67% of the population (75% rural and 50% urban population to be covered)

  • To provide Rice, wheat and coarse cereal at Rs. 3, 2 and 1 respectively.

The most optimistic estimates put the cost of the scheme to Rs. 1.3 lakh crore per annum (11% of the net expenditure)


Food security bill critique

Food Security Bill: Critique

  • Do we need it?

  • How are we going to fund it?

  • Impact on other items?

  • Can we deliver?

  • Isn't it too obvious?


Govt initiative food security bill1

Govt Initiative: Food Security Bill

  • Political implications

  • Public distribution system

  • Cross Subsidy


Govt initiative mgregs

Govt Initiative: MGREGS

"the largest and most ambitious social security and public works programme in the world"

Issues

Net value add

Impact on the job market

Impact on the budget


Poverty summary

Poverty: Summary

  • Poverty and Unemployment go hand in hand.

  • Govt. schemes for poverty alleviation focus on creating jobs & subsidies in agri & other produces.

  • Govt schemes are marred by ill-conception, scale of implementation and corruption.


Education

Education

  • Literacy rate: 74% (82% for men and 65% for women) (world average: 84%)

  • Only 15% of Indian students reach high school, and just 7% graduate

  • Consistent share of at least 3% in the budget spend since freedom.


Access to education

Access to Education


Right to education act

Right to Education Act

  • Education is the fundamental right of every child between the ages of 6 and 14

  • Private schools to reserve 25% of seats to children from poor families

  • It prohibits all unrecognized schools from practice

  • No donation and no interview for admission

  • No child shall be held back, expelled, or required to pass a board examination until the completion of elementary education.


Quality of education

Quality of Education

Role of govt bodies (UGC, AICTE, MCI etc)

  • Teacher – student ratio

  • Balance between acads and extra-curricular activities

  • Rote based teaching

  • Skill development

75% of technical & 85% of general graduates are unemployable by industries. (WSJ)

No Indian university appeared in top 200 (including the IITs). (QS World University Rankings (sept 2011))

The number of students writing CAT 2013 is 2 Lakh (for 3500 seats), GATE 2013 is 12 lakhs (for less than 500 seats), over 5 lakh students for IITJEE 2013, 7.5 lakh for NEET 2013 etc.


Education important issues

Education: Important issues

  • Fee and Funding

  • Pvt participation and degree of control

  • Attracting foreign universities

  • Limited job opportunities post graduation

  • Adult Education – Literacy vs Education


Education summary

Education: Summary

  • The govt has spent a lot of money on Literacy but to not much avail.

  • The policy is misdirected – Education and not Literacy should be the target.

  • Focus on employability and alternately creating more employment opportunities is the ultimate solution to the problem.


Agenda2

Agenda

  • Poverty

  • Business Environment

  • Education

  • Corruption

  • Law and Order


Law and order

Law and Order

  • Police

  • Judiciary

  • Status of women


Police

Police

  • System of policing is governed by "Police Act of 1861"

  • Police-population ratio of 120 against global avg. of 270 per one lakh

    “An average of 50 transfers every month in a state that has around 350 IAS officers...43 IPS officers have been transferred 40 times in their career.”

    “the bureaucrats should work in close coordination with party leaders or face the music.”

    - State of affairs in UP

    Read article “A hell hole for Civil Servants” by Tehelka


Police reform

Police Reform

  • Minimum tenures for senior police offices (Station Inspector upwards).

  • Setting up of a body to decide transfers, postings, promotions and other service related matters of police officers.

  • Police Complaints Authority at state level to inquire into public complaints against police officers.

  • Increase in the funding/budgetary allocation for the Police department.

  • Separate the investigation and law and order functions of the police.

  • Greater integration of various arms of investigation.


Judiciary

Judiciary

  • More than 3.7 Crore cases pending at various levels of courts (district, high and Supreme)

  • High pendency levels at the quasi judicial forums (like MRTP commission, consumer forums, Company Law Board, Administrative tribunals, taxation tribunals etc).

    “Justice delayed is justice denied.”

    “Justice should not only be delivered, it should also be seen as being delivered.”


Judicial reforms

Judicial Reforms

  • Simplification of the court procedures

    • Service of summon, recording of evidence, arguments, decision

  • Suitable changes to categories of laws with high pendency

    • Dishonored cheques, Motor Accident, Land acquisition, maintenance to dependents

  • Compounding/amnesty schemes for penalty related offences

  • Alternative dispute resolution mechanism

    • Lok Adalat, pre-litigative redressal, expert tribunals and regulators,

  • Fast-track courts

  • Use of IT


Status of women

Status of Women

  • Foetecide (sex ratio: 941; 914 for children below 6 years),

  • Discrimination (male vs female literacy rates)

  • A crime against a women is committed every three minutes, a women is raped every 29 minutes, a dowry death occurs every 77 minutes - National Crime Records Bureau

  • Causes

    • Social: Justice and policing, Mindset (Patriarchy, Tradition, Marriage)

    • Economic: Lack of job opportunities, Limited family income

    • Biological: Nature of work, maternity, self-defense


Government initiative

Government Initiative

  • Woman Reservation Bill (pending for over 4 years)

  • The sexual harassment of Women at workplace Act, 2013

  • Protection of Women from Domestic Violence Act, 2005

  • Justice JS Verma Committee report and Nirbhaya Act (Criminal Law Amendment Act, 2013)

  • Women empowerment through Self Help Groups, Microfinance, reservation in education etc.


Issues facing india

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