This one also falling in place

Thought for the day

"During the first period of a man's life the greatest danger is not to take the risk."

—Soren Kierkegaard (Danish, 1813-1855)

Word for the day

Hypostatize (v)

To treat or regard (a concept, idea, etc.) as a distinct substance or reality.

Malice towards none

The people of Delhi, who empowered Arvind Kejriwal to take their fight against corruption forward, have indicated (through MCD elections) that they are not happy with him.

The question is why they are not coming out on streets, the way they did during IAC campaign, and asking him to step down?

Or Is there much more than what's meeting the eye?

First random thought this morning

Markets shrugged off Brexit and Trump in no time. Both were marketed aggressively as potential disaster. Traders are fully reconciled to two Fed hikes later this year. French elections gave no opportunity for a short trade either. OPEC unity has so far not yielded much in terms of inventory glut easing or price stabilization.

Back home the market rally is being attributed to Demonetization (accelerated financial inclusion, better fiscal, etc.), something that was marketed as monumental disaster by many reputed economists and analysts.

The disregard for experts' opinion by market was never so stark.

This one also falling in place

The most important contribution of the present day government to Indian economy, in my view, is its national approach to some critical economic issues.

After many decades many decades we have a political party in power with such overwhelming dominance and aspiring for complete dominance. The overriding influence of the central leadership over the vast area of dominance (BJP ruled states now encompass ~60% of Indian population) allows near seamless economic integration of many large states like UP, MP, Maharashtra, etc.). At the same time the strong aspiration of BJP leadership to rule over the rest of the country (especially Bihar, West Bengal, Odisha and Karnataka) motivates them to focus on economic development of these regions as well.

Implementation of GST is more popular indication of the economic integration efforts of the incumbent government. But in my view, the more relevant efforts include pan-Indian approach for railways and highways expansion, an apolitical approach for power sector reforms, efforts to establish a nationwide agriculture market, gradually phasing out tax incentives on area specific investments, amendment in mining laws that allows the mine holding states to draw a larger share in royalties and incentivizes putting manufacturing facilities closure to raw material, etc.

There are two things, impact of which will be evident only later, are -

(a)   Putting onus of executing central schemes on states through recommendations of 14th finance commission. Under the current circumstances where there is one dominant party with strong central leadership, this design may work well. The planning and policy making can be centralized and execution could be delegated to states. But it is to be seen if it will work in different circumstances.

(b)   Replacing the legacy Planning Commission, which was empowered to make development plans in consultation with states, with a more advisory body NITI Aayog. While both the bodies came into existence through executive orders and depend on the government's will, the planning commission had assumed an important role in the 5yr plan based development model adopted by India since independence.

The new design however appears to suggest that we no longer want to follow the central planning model that was loosely based on the Soviet command based economic development model. It however also does not suggest that we are ready and willing to adopt the laissez-faire model of USA, where markets are free and federal states are materially powerful.

The conflict between the development economists who have so far dominated the Indian policy making arena, and the market economists who have given more important roles probably for the first time, will take some time to resolve, in my view. We will be able to judge the pertinence of NITI Aaoyg only when that happens.

Overall, I feel we have taken many steps on the road to economic integration of the country, and this piece shall fall in place in next decade or so. 

Failure is not an option here

Thought for the day

"Face the facts of being what you are, for that is what changes what you are."

—Soren Kierkegaard (Danish, 1813-1855)

Word for the day

Oleaginous (adj)

Having the nature or qualities of oil.

Containing Having oil.

Malice towards none

It's rather  surprising to see that our market experts are bothered in equal measure about the French presidential elections and Delhi Municipal elections!

First random thought this morning

Arvind Kejriwal is behaving like the puerile young man who is cutting the branch of the tree he is sitting on.

By tagging anyone and everyone of his party members who chose to speak against him as "sold to BJP", he has implied that AAP members and MLAs are saleable if you pay the right price, thus seriously dissipating the credibility of all AAP members.

Failure is not an option here

In five decades of post Nehru period, there have been many national movements which have attempted to redefine the India's social, political and economic milieu.

Most notable of these movements are Naxalite movement of 1960's spearheaded by Charu Mazumdar and Kanu Sanyal et. al.; Jaiprakash Narayn's "Total Revolution" in 1970s, V. P. Singh's "Jan Morcha" in late 1980's, and L. K. Advani's "Ram temple" movement in early 1990's.

Besides, many regional movements have also had notable impact on the Socio-political order. Kanshiram's movement for social justice to the bottom of the pyramid, viz., "Bahujan Samaj" is amongst the most prominent ones.

Though most of these movements have had material influence on our socio-political order, none of these movements could sustain to achieve a potent revolution that could catalyze a complete break away from the politically feudal, economically colonial and socially divisive legacy of British Raj.

After five decades, the society continues to be deeply divided on the lines of religion, caste, and community. Socio-economic inequalities obdurately persist. Social and gender prejudices run deep into citizens' mindset.

The political consequence is that the populace as a whole still prefers to closely identify with religion, caste, community, region rather than the Nation. Reflecting the divide, the elected representatives are often seen pursuing parochial agenda; sometime at the expense of broader national interests.

The economic consequence is that we have failed to devise a "National" approach in economic planning and programming. A fragmented approach in defining economic agenda, has often led to clash of regional aspirations and misallocation of scarce national resources. Indian Railways, various river water disputes, conspicuous regional growth imbalances and wasteful "tax exempt industrial zones" are some classic examples.

In this backdrop emergence of a strong Nationalist leader in PM Narendra Modi is a critical developments. Though it's still some distance away to qualify as a redefining national movements, it appears well on course.

The single most important contribution of PM Modi's efforts to the social order could be identified as rise of hope in the society in general. It is particularly significant because this rise in hope has occurred at the expense of general skepticism over political establishment.

The question is whether this rise in hope will get channelize into the economic sphere in terms of larger and deeper investment commitments, improvement in risk profile of entrepreneurs, and better compliance standards.

A failure on part of the government in general and PM Modi in particular could lead the country into a renewed bout of skepticism, risk averseness and non-compliance.......to continue

Shed the colonial past

Thought for the day

"It is the knowledge that all men have weaknesses and that many have vices that makes government necessary."

—James Monroe (American President, 1758-1831)

Word for the day

Minatory (adj)

Menacing; threatening.

Malice towards none

As per the latest Cleanliness rankings, MP emerges as the cleanest state in the country and the neighboring UP as the dirtiest.

First random thought this morning

Sometime I wonder whether we live in a democratic country or feudal village.

National media prominently shows, as a novelty, how the president of ruling party and vice president of principle opposition party eat food with poor people. Prime Minister visits temple, of course as a VVIP, but takes off his shoes himself. CM of a large state himself performs Kanya Pujan during Navratri. All events are reported as hallmark of the benevolence and humility of leaders.

A different view is to see how a minister gets out of his office. The driver brings the car 20minutes early, runs the AC to cool it. One person carries the briefcase and files. One person runs and holds the gate of lift so that minister does not have to wait. Some ministers like someone to hold their mobile phone too. This is true even for most of the Hawai Chappal wearing Delhi ministers.

Shed the colonial past

India became an independent political union 70years ago. However, it continues to remain far from becoming an economic and social union till date.

In past two decades, some notable efforts have been initiated to make India a strong economic union. The most pertinent being development of golden quadrilateral of national highways, development of dedicated freight corridors, a uniform goods and services tax, and more recently proposal to develop a national market for agriculture produce.

Many efforts have been made to promote cross state investments through tax concessions, e.g., tax holidays for setting up new industry in industrially backward areas, subsidies for new units in SEZ, Agro processing zones, Software Technology Parks, to reduce regional inequalities.

So far, these initiatives have brought some incremental changes in the direction and trajectory of economic growth. These measures are usually found inadequate in bringing any structural change in the economy, something we need desperately at this point in time of history. It remains to be seen whether GST will bridge the inequalities of widen these.

The economic model adopted post independence era, which was mostly an extension of the exploitive colonial model used by British Empire, has promoted inequalities, injustice and unsustainability. This is the economic paradigm we need to change by instituting fundamental reforms. Improving efficiency of the extant system is just not sufficient.

It is pertinent to take note some basic data points, before I extend my argument any further.

(a)   The four largest populated states, viz., UP, Bihar, MP and West Bengal are amongst the poorest ones. These four states account for almost 40% of total population of India. Whereas their contribution to India's total GDP is just ~20%. The annual revenue gap (the difference between the revenue earned and revenue expenditure) for these states is much higher than the national averages. Bihar earns just 31% of its revenue expenditure requirement; UP 51%; MP 46% and West Bengal 45%.

(b)   The four richest states in India, viz., Maharashtra, Tamil Nadu, Gujarat and Karnataka account for less than 25% the total population; whereas their contribution to national GDP is over 40%. Maharashtra (72%), Tamil Nadu (79%), and Gujarat (75%) are able to cover their revenue expenditure much better.

(c)    Five top states Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh account for close to 70% of total exports from India. Whereas the resource rich states like Jharkhand, Chhattisgarh, West Bengal, Odisha, Punjab etc. lagged much behind.

(d)   The economic inequalities are fully reflected in the social parameters like child mortality, literacy, women health, availability of drinking water and sanitation also.

The point is if we keep more than 50% of the population just at the sustenance level, how do we create enough demand to grow faster and higher! ....to continue next week

Improving farm income

Thought for the day

"Preparation for war is a constant stimulus to suspicion and ill will."

—James Monroe (American President, 1758-1831)

Word for the day

Dox (v)

To publish the private personal information of (another person) or reveal the identity of (an online poster) without the consent of that individual

Malice towards none

Why Shri Narendra Modi visiting a temple should be a national news?

 First random thought this morning

I almost killed myself and two school children yesterday in order to avoid hitting a dog who suddenly decided to take a stroll on a busy road and came in front of my car from nowhere. Police refused to file an FIR and take any action against the errant canine.

Why can't animals be treated just like human being and punished for endangering others life, littering and encroaching public land.

Cases of killing and mutilation of bodies of infants and young children by stray dogs are reported frequently in India. There are many cases of attacks on adults, old and infirm also.

Why is it so that media, liberals, nationalists, politicians and civil society has never made hue and cry over these deaths.

Improving farm income

As I suggested yesterday (see here), to improve the health of farm sector, and liberate 40% of Indian population from perennial distress, we need a combination of administrative, legal, social, economic and financial sector reforms. In particular the following three things need to happen, viz., (a) Substantial rise in productivity; (b) Substantial rise in price of agriculture produce; and/or (c) fall in price of agriculture land.

Rise in productivity

My discussion with many farmers, agriculture scientists and rural activists suggests that a substantial rise in productivity is possible without cumbersome land, marketing and labor reforms or building expensive infrastructure.

Aggressive promotion of collective farming, institutionalization of farm equipment rental business, creating more awareness about intensive farming and moving the farmers away from traditional cereal crops towards cash crops could enhance yields by 50-100% in most cases.

In this context, implementation of the food security law is critical. If implemented in right earnest this could transform Indian agriculture from a mere self sustenance activity into a truly commercial activity.

This measure combined with the financial inclusion efforts, could have meaningful impact on the livelihood and productivity of small and marginal farmers.

Substantial rise in prices of agriculture produce

A substantial rise (2 to 3x) in most agriculture produce price could potentially bring back interest in agriculture sector and incentivize substantial investment leading to higher productivity and eventually lower food inflation.

This one time measure could help making taxation of this sector politically and finically feasible thus improving the fiscal balance of the country.

The negative could be substantial rise in food inflation in the short term leading to higher rates.

Substantial fall in land prices

Substantial fall in prices of agriculture land could also help in improving yields and therefore attract fresh investments in the sector.

Such a fall, however could have serious impact on the consumer discretionary spend, as a large part of the growth in discretionary spending has been contributed by the wealth effect created through higher land prices.

The best solution therefore would come only from a mix of the above three. Any solution on these lines might take ~5years to implement and another ~5years to have a meaningful impact on structure of agriculture sector in the country.

Taxing farmers may yield nothing

Thought for the day

"Sheep, like people, are ungovernable when hungry."

—John Muir (American, 1838-1914)

Word for the day

Green-Collar (adj)

Noting or pertaining to workers, jobs, or businesses that are involved in protecting the environment or solving environmental problems.

Malice towards none

You speak one lie 100times, and people start believing it to be true.

This adage does not seem to be applying to AAP.

The more they lie, the more  people disbelieve them. So much so that many have started discounting their truths also.

First random thought this morning

Our government seems to be pushing the Make in India policy hard. Reportedly, it now wants all government procurements to be sourced locally. It also wants metro trains to have at least 75% local content. It sounds like a great idea.

The small problem is that many of our large trade partners like USA also seem to be copying our idea of localization, and many of us are not liking it.

An American investor who recently visited Patanjali facilities in Haridwar, got the impression that this desi enterprise certainly has tacit support of thegovernmen (States and Central). If global corporations like Coke, Pepsi, HUL, Nestle, P&G etc. get hit due to this, this pain will certainly reflect on likes of TCS, Infosys.

Taxing farmers may yield nothing

Tax on agriculture income is one of the favorite topic of market economists and strategists. Most of them believe that by taxing agriculture income, the government could materially improve its fiscal position.

In my view, taxing agriculture income would add only an insignificant amount to the government's kitty. Anyone betting big on taxation of agriculture income may perhaps need to spend 6months in any village of the country to understand what I am trying to suggest.

About 40% India's total population is directly dependent on farming. As per the latest available NSSO survey (70th Round, June 2013), the country has about 90.2 million agricultural households.

Among the major States, Rajasthan has highest percentage of agricultural households (78.4 percent) among its rural households followed by Uttar Pradesh (74.8 percent) and Madhya Pradesh (70.8 percent). Kerala has the least percentage share of agricultural households (27.3 percent) in its rural households preceded by other southern States like Tamil Nadu (34.7 percent) and Andhra Pradesh (41.5 percent).

Close to three fourth of these farmers belong to OBC, SC and ST category. Two third of these farmer household have crop cultivation as their primary source of income. 22% of these household survive on wages. While the others have livestock and agri related activities as their primary source of income. About 44percent of estimated agricultural households have MGNREG job card.

Average monthly income of the agricultural households, including net receipts from cultivation, farming of animals, nonfarm business and income from wages/salaries, during the agricultural year July 2012- June 2013 was estimated as Rs.6426/per household (Average 5people).

About 52 percent of the agricultural households in the country are estimated to be indebted. The average amount of outstanding loan per agricultural household was Rs.47000/- (approx.).

Among the major States, Andhra Pradesh had the highest share of indebted agricultural households in the country (92.9 percent) followed by Telangana (89.1 percent) and Tamil Nadu (82.5 percent). Assam (17.5 percent), Jharkhand (28.9 percent), and Chhattisgarh (37.2 percent) were the major States with lowest share of indebted agricultural households.

The average amount of outstanding loan was highest for Kerala (Rs.213600/-) followed by Andhra Pradesh (Rs.123400) and Punjab (Rs.119500). Assam (Rs.3400), Jharkhand (Rs.5700) and Chhattisgarh (Rs.10200) were the States with lowest amount of average outstanding loan.

About 83% (80% in 2003) of the total farming households in India are either landless or marginal (holding less than 1 hectare or 2.47 acres cultivable land). The average gross cropped area per agricultural household is period 0.937hectare (2.31 acre). The average value of production (which included value of harvested crop, pre-harvest sale and value of by-products) per agricultural household during the period was Rs.40580/-.

However, if we adjust this average income for the loss due to crop damage due to natural causes (at least once in three years), the average income per farmer household will be much lower.

It is most pertinent to note that this income does not account for the cost of self-labor and own seeds used.

As the following table shows, only 0.24% or appx 2,15,000 agriculture household are large farmers (owning more than 6hectare cultivable land). They collectively own approximately 5.8% of the total cultivable area.

Assuming that they earn more than average farmer household income of Rs41000/hectare per crop, and are able to take three crops every year, the average income for the large farmer household may not be more than Rs41000 X 3crops X 6hectare=Rs7,38,000. Dividing this income between two adult members of the house and adjusting for expenses like depreciation on equipments, interest on loans, and one bad year in five years, the government may not get virtually any tax.

 

 

 

I understand that there are numerous cases of false reporting of agriculture income to convert black money without any tax.

There are some large farmers, who hold large chunks of Benami Land, and may be earning much more than the averages mentioned above.

But these are anomalies. These need to be handled as such. Making a rule based on these exceptions may not yield much results.

As such, agriculture is a totally unviable business in India. With over 40% population engaged in an unviable and least productive business, an economy cannot be expected to grow faster on sustainable basis.

If we want Indian economy to grow faster on sustainable basis, supporting restructuring and reorganizing India's farm sector is a pre-requisite.

...to continue

Save Ganga & Yamuna first, Saraswati can wait

First random thought this morning

Congress party, when in power had rejected re-election of Dr. APJ Abdul Kalam as president of India. Instead of the undisputed hero of 125cr Indians, it successfully installed a totally unimpressive Congress leaders as the supreme commander of our forces.

Now the same party is seeking to organize a coalition of same parties who supported Dr. Kalam's candidature, to put up a "consensus" opposition candidate for the presidential election due in couple of months.

It's disgusting!

Thought for the day

"In every walk with nature one receives far more than he seeks."

Word for the day

Perfidious (adj)

Deliberately faithless; treacherous; deceitful, e.g., a perfidious lover

Malice towards none

In past three months, Arnind Kejriwal and Congress leadership have openly admitted that their elected representatives and other party members are corruptible. They are open to switch loyalties for monetary and other benefits.

This is a reflection on whom?

Save Ganga & Yamuna first, Saraswati can wait

The revival of the Vedic river Saraswati is one of the important agenda items for the incumbent government.

The common belief is that the river that had flown through the north west India during Vedic period, vanished some 4000years back.

There are a plethora of claims of "scientific evidence" of the existence of the sacred river. Based on these claims, numerous studies and projects have been undertaken in past many decades, to trace the river and revive it.

Being a deeply religious person, I would be delighted if river Saraswati is found and revived. But that is when it would happen.

Today, I feel a deep sense of anguish and disillusionment with the way various governments, authorities and we the people have worked overtime to destroy the present rivers, including Yamuna and Ganga.

In a drive of 14000kms through the states of Gujarat, Rajasthan, Punjab, UP, MP, Chhattisgarh. Maharashtra, Telengana, AP, TN I saw numerous dry riverbeds. Most of these were used for illegal sand and stone mining.

Recently, the famous picnic lake outside historic Old Fort in New Delhi, situated just 1km from the Supreme Court and 2kms from the Parliament house, dried up completely. It has made national news.

The point I am trying to make is that despite all the noise, promises, programs and expenditure of billions of dollars, we have thoroughly failed in saving our sacred rivers, that are present today.

While we strive to rediscover Sarawati; at the current rate of degeneration, Yamuna will definitely vanish in next 50-70years; and so would a number of other rivers.

Recently, ministers of Union government and Uttrakhand government have announced a major road project in the Garhwal Himalaya. The project would aim to connect the four sacred temples in upper reaches through a wider road network.

The stated objective of the project is to make it more convenient and safer for the pilgrims to visit these sacred temples.

As a frequent visitor to the region, I can vouch that the ecology of the region is already facing serious threats. The Kedarnath tragedy of 2013 is just an illustration of the disasters we are going to face rather frequently.

This widening of roads will not only cause cutting of numerous trees, but also result in massive increase in vehicular traffic and number of pilgrims visiting the region. Rise in pollution, pressure on infrastructure, massive construction of room capacities and other conveniences will thoroughly destroy the sanctity of the place itself; and kill the sacred rivers that originate from there.

If I am minister today, I will completely ban private vehicles in 100km radius of temples. Develop the traditional trekking route. Provide tented accommodation with bio-toilets along the way. Ration the number of pilgrims visiting these temples, and make it compulsory for all pilgrims to plant one tree each and pay for their maintenance for one year.

Make growth sustainable and equitable

Thought for the day

"The clearest way into the Universe is through a forest wilderness."

Word for the day

Synesthesia (n)

A sensation produced in one modality when a stimulus is applied to another modality, as when the hearing of a certain sound induces the visualization of a certain color.

Malice towards none

Violence, be it in J&K or in Chhattisgarh, needs to stop. Immediately.

First random thought this morning

Indian equity market scaled new peak yesterday in a typical frenzied fashion. The panic amongst investors and traders who were waiting for a correction to buy is palpable. The common refrain now is "buy whatever has not gone up".

The junk is therefore on the move at a scorching pace.

In all this, a sane friend reminded, quoting Howard Marks “When there’s nothing clever to do, it’s a mistake to try to be clever.”

Make growth sustainable and equitable

Last year, the central government told the Supreme Court that over 330mn Indians are facing acute water shortages due to drought conditions.

I am not sure what my readers in metro cities having no direct connection to the affected areas made out of this admission by the government. But trust me (a) this is much more serious than you could possibly imagine; and (b) the government was only partially right in its statement.

It is true that over one fourth of Indian population is suffering from serious water crisis. But it is not completely true that this is some temporary problem caused by two consecutive drought years and rains this monsoon season will resolve the problem.

In many parts of the country, including many metro cities like Delhi, Bengaluru, Mumbai, Indore, Madurai etc., water shortages are perennial. People, mostly female members of the household, have to walk long distances and wait for hours to fetch few liters of water barely sufficient to meet their sustenance needs.

Large parts of central and south India, Rajasthan, Gujarat and Maharashtra are parched since decades now.

The current drought conditions have obstructed industrial production in affected area, damaged crops, and adversely impacted animal husbandry. But this is not the worst part.

Last year, our trips to Bundelkhand and Vidharbha regions, taught us that acute water scarcities is severely damaging (a) the basic fabric of the society; (b) peoples' faith in the constitutional institutions; (c) the survival instinct of people; and (d) psyche of the people.

The rate of crime is rising. Even bigger problem is that the acceptance of crime as a way of life is rising; affording a certain degree of legitimacy and respect to the criminals. Child traffickers, organ thieves, pimps and rapists are not amongst the most hated. Police, district administrators, bureaucrats, and politicians enjoy that distinction. This mistrust of people in the establishment was one major reason for disastrous performance of SP in last UP elections.

On economic side, the country is witnessing humongous productivity loss. A large number of children and youth are missing school and work to go in search of water. Mothers are not getting enough time to feed their newborn. The business of dirty water is growing much bigger than the bottled water and so is the business of water borne diseases.

The government and policy advisors need to accept that higher and faster growth is not sufficient. We would need to make the growth much more sustainable and equitable. I have been writing on this subject consistently for past many years. 

Water & electricity

Thought for the day

"The world, we are told, was made especially for man - a presumption not supported by all the facts. A numerous class of men are painfully astonished whenever they find anything, living or dead, in all God's universe, which they cannot eat or render in some way what they call useful to themselves."

Word for the day

Lacuna (n)

A gap or missing part, as in a manuscript, series, or logical argument; hiatus.

Malice towards none

Last Sunday, the people in South Delhi were so engrossed in French elections, that they forgot to vote in MCD election.

First random thought this morning

There are stark similarities between the relationship of ruling party & opposition today and the relationship of ruling party & opposition in 1970s.

The incumbent government perhaps also enjoys the public support, similar to what Mrs. Gandhi enjoyed post 1971 war to liberate Bangladesh.

The key ponderable is — whether this re-release of history show continue for next 10yr or a new era shall begin soon!

Water & electricity

Water and electricity have traditionally constricted India's economic growth in a significant manner.

The electricity supply conditions have improved materially in past 10years, as the effort to engage private sector in generation and distribution of electricity have started to show results. From a total installed generation capacity of 1,05,046MW in 2002, the capacity had grown ~3x to 3,19,606 MW by the end of FY17. Out of this almost one third capacity is non-thermal (Nuclear, Hydro and Renewable).

During March 2017, on all India basis, the country suffered a peak demand deficit of only 1.6%, where this deficit used to be normally in the range of 11-15% just a decade ago. Most of the current deficit lies in northern region.

Similarly, the electrification of villages has gathered speed. Technically over 98% of the total 6lakh odd inhabitations have now been connected to the national grid. Though the regional disparities do exist, and not all homes in the claimed electrified villages get electricity, but still it is a big leap in past 10years. The spread of rooftop of solar panel in rural areas is also showing good results.

The current merchant power rate of rs2.5/unit and average plant load factor of 60%, suggests that presently there is no shortage of electricity for industry in the country.

The size of consumer durable (appliances etc.) market in India has grown almost 5x in past 15years, and it is still considered to be one of the most underpenetrated markets amongst peers.

Availability of adequate electricity supply (quantity and quality) adds materially to the productivity at all levels - industry, household and individual. These gains we have already seen beginning to accrue. There is sufficient evidence that the rate of accrual of these gains shall accelerate exponentially in next decade or so.

However, unfortunately, the same cannot be said about the water.

The per capita availability of water is diminishing almost every year. The average annual per capita availability of water in the country, taking into consideration the population of the country as per the 2001 census, was 1816 cubic meters which decreased to1545 cubic meters as per the 2011 census. The ground tables of water are receding at alarming pace. Even a well irrigated state like Punjab is witnessing severe water crisis. Many regions in southern and central India are facing frequent droughts.

From my personal experience I know that in rural areas of developed states like Maharashtra, people spend 4-5hours a day to fetch drinking water from far away sources. Many children, mostly girls, cannot go to school or study properly, because they need to fetch water for the family. To make the matter worst, the water they get is mostly contaminated and inflict serious diseases on the family.

The most impactful reform is therefore needed in the area of water...to continue