Wednesday, June 14, 2017

Agenda for transformation

"Principles and rules are intended to provide a thinking man with a frame of reference."
—Carl von Clausewitz (German, 1780-1831)
Word for the day
Hireling (n)
A person who works only for pay, especially in a menial or boring job, with little or no concern for the value of the work.
Malice towards none
How do we define Sino-Pak relationship?
Friendship, it is certainly not.
Slavery, may be.
Stooge, close.
 
First random thought this morning
It is the season when stories of children from poor and marginalized families excelling in various competitive examinations, especially IIT-JEE and UPSC Civil Services, are told in media with great fervor.
At the same time there is no dearth of horrific stories about repression of downtrodden and neglected.
Unfortunately, the popular narrative of liberal elite is limited to the latter only, thus giving an impression of total darkness and oppressive state machinery.


Agenda for transformation

 
The draft three year agenda released by NITI Aayog, seeks to transform all three major sectors of economy, namely agriculture, industry and services.
Insofar as the farm sector is concerned, as per the Draft, "Farmers make up nearly half of India’s workforce. Therefore, for India to flourish, its farmers and the farm economy must prosper."
The Action Agenda outlines "a strong programme for agricultural transformation. It includes numerous measures to raise farm productivity, bring remunerative prices to farmers, put farmers’ land to productive uses when they are not able to farm it themselves and improve the implementation of relief measures."
The Draft offers an ambitious agenda for empowering the rural population through improved road and digital connectivity, access to clean energy, financial inclusion and “Housing for All.”
The Draft recognizes that "Enhancing agricultural productivity requires of efficiently using inputs, introducing new technologies and shifting from low to high value commodities."
It is highlighted that higher farm productivity would require expanding the scope of irrigation to increase crop intensity, improvement in access to irrigation, enhancing the seed replacement rate and encouraging the balanced use of fertilizers.
The Draft agenda emphasizes that "Precision farming and related new technologies, that allow highly efficient farming and conserve resources, must be spread through appropriate policy interventions."
Reforming APMCs, redefining the system of support prices for crops, land reforms to make the landholdings of marginal farmers viable, and adequate social security program for farmers to deal with stress due to natural calamities etc. are some of the key suggestions.
The Draft agenda stresses that to achieve the goal of doubling farmers' income by 2022, "Conditions conducive to shift into high value commodities such as horticulture, dairying, poultry, piggery, small ruminant husbandry, fisheries and forestry need to be created."
For the industry and services sector, the agenda finds that underemployment and hence lower worker productivity is a more serious problem in India, rather than unemployment, which has remained mostly consistent between 5-8% through past many decades.
Accordingly, the Draft, emphasizes on creation of high-productivity, high wage jobs. To meet this end, it is highlighted, that focus has to be on measures necessary for the increased emergence of larger, organized-sector firms.
While recognizing steady progress in the services sector, the Agenda offers specific proposals for jumpstarting some of the key manufacturing and services sectors, including apparel, electronic goods, gems and jewellery, financial services , tourism and real estate.
I shall discuss all these proposals in some details in the coming days.

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