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THEME OF INCEST AND DISLOYAL IN SAM SHEPARD'S BURIED CHILD


N.ASHARUDEEN

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AJRSH                          Volume 2, Issue 1 (January, 2012)                ISSN 2249‐7315 
 
A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES

SR. NO. PARTICULAR PAGE NO.


THEME OF INCEST AND DISLOYAL IN SAM
SHEPARD’S BURIED CHILD [PDF]
1. 1-3

N.ASHARUDEEN
IN SEARCH OF THE TRUTH: FROM MYSTICISM TO
MYSTICISMS [PDF]
2. 4-6

SHABIR HUSSAIN GANAIE (SHABIR MAGAMI)


PRESENCE OF DISPARITIES IN HUMAN
DEVELOPMENT AT MICRO LEVEL IN DEVELOPING [PDF] 
COUNTRIES - A STUDY IN PURULIA DISTRICT, WEST
3. 7-44
BENGAL, INDIA

MUKUNDA MISHRA
MULTIMEDIA LANGUAGE LAB: THE NEED OF THE
HOUR [PDF]
4. 45-54

MS. HARSHDEEP
CURSES OF PLASTIC ON ENVIRONMENT
5. [PDF]  55-60
DR. PHILIP MODY, SRI. RIKO MIHU
BT TECHNOLOGY: LABOUR USE PATTREN IN
COTTON (A CASE STUDY OF ANDHRA PRADESH) [PDF]
6. 61-72

DR. A. BALA KRISHNA


EMOTIONAL INTELLIGENCE PERSUADES GENERAL
MENTAL ABILITY AND CONSCIENTIOUSNESS [PDF]
7. 73-79

DR. J. VENKATESH, MR. D. BALAJI


ANALYSIS OF COST AND PROFITABILITY OF BT &
NON BT COTTON - A CASE STUDY OF HAVERI [PDF]
8. DISTRICT (KARNATAKA) 80-95

DR.C.S.YATNALLI

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CHILDREN’S EDUCATIONAL STATUS AND
PERFORMANCE: ROLE OF FAMILY ENVIRONMENT [PDF]
9. IN INDIAN CONTEXT 96-110

DR. PUSPITA DATTA, SANJIT SARKAR


PRESCHOOL EDUCATION: HOBSON’S CHOICE?
10. [PDF] 111-117
S.MEERA
INTERNET ADDICTION: A CAUSATIVE MODEL
11. [PDF] 118-131
JOSE MATHEWS
TRANSFORMATION IN INDIAN BANKS THROUGH
E SERVICES -EMERGING ISSUES AND NEW [PDF]
12. 132-152
OPPORTUNITIES
DR. R.K. UPPAL
LEGAL ASPECTS OF FINANCING SOCIAL SECURITY
13. SCHEMES IN INDIA [PDF] 153-161
DR ANITA TANEJA
AGRO BASED INDUSTRIES - A PANACEA FOR INDIAN
14. AGRICULTURE [PDF] 162-196
DR. MANOJ SHARMA, DR. RAJIV KHOSLA

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AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
THEME OF INCEST AND DISLOYAL IN
SAM SHEPARD’S BURIED CHILD

N.ASHARUDEEN*

*Ph.D Research Scholar, Department of English,


Annamalai University, Annamalai Nagar, India.

ABSTRACT

Sam Shepard was born by the name Samuel Shepard Rogers on November 5, 1943 in
Fort Sheridan, Illinois. Sam Shepard has gained fame as one of America’s foremost
living playwrights. He became an archetypal symbol of American self-made man and
has been identified “a true American hero”. His first full-length play, La Turista,
was performed at the American Place Theatre in 1967. His popular play Buried
Child won the Pultizer Prize. In the first Act of this play, Shepard highlighted the
bewilderment between characters, just because of innocent son and crazy
performance of an old man. Second Act focused to reveal secret of family from the
past. Tension and violence increased through the way of dishonest and the act of
incest. In the Third Act, Shepard finalized the character Vince as the real heir of that
family. Innocent character Tilden appeared with Buried child finally.

KEYWORDS: Disloyal, Identity, Resurrection Violence.


______________________________________________________________________________

INTRODUCTION

Among the plays of Sam Shepard, Buried child considered the most prominent play which won
the Pulitzer Award. Most of Shepard’s plays contains with several twists and also makes the
reader to think of something that is different. This play contains with several twists and
speculating the reader with enthusiasm. Shepard points out the dysfunctions of American family
in clear manner and comprises the theme of incest and disloyal in this play. In an Article entitled
“Shhhhhhame: silencing the family secret in Sam Shepard's Buried Child” Benjamin Opipari
quotes:

The play is about a family of misfits and outcasts who has tried unsuccessfully for
years to cope with the emotional destruction inflicted upon them by the horrible

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acts of incest committed between the mother Halle and son Tilden, as well as the
ensuing murder of the newborn child by Halle's husband Dodge.(123)

There are seven main characters in this play, most of these belonging to one family. The
play begins with Dodge, who is in his seventies with alcoholic mind, not possible to live much
longer. He has a harmful cough, which makes an idea about him severely ill. His horrible cough
appears to show the development of his illness throughout the play. Shepard reveals the real
appearance of his own father through the character of Dodge. In an Article entitled “Shepard's
Choice” Robert Brustein quotes:

The name of Dodge, a cantankerous drunkard in Buried Child, reappears in the


stories as his great-great-great-grandfather, Lemuel Dodge, who lost an ear
fighting for the North and an arm fighting for the South. But Dodge, the dramatic
character, is probably much closer to Shepard's own father. (28)

The introduction of Tilden, Dodge's eldest son, is fairly unusual and he enters the house
with an armful of corns and falls down it, in front of his father. Tilden is an abnormal man and he
is not able to do anything without the permission of his father and mother Halie. She concerns
with more protective about his sons Tilden and Bradley. Bradley is an aggressive man, who lost
his leg in a chainsaw mishap.

Halie moves out with Father Dewis, Protestant priest. He is an adulterous and disloyal to
American society. Dewis makes an affair with Halie. At that time Tilden's Son, Vince, arrives
there to visit the family members. When he enters the house after six years with his girlfriend
Shelly, Dodge and Tilden cannot recognise him as one of his family members. Confusion is
going on between the characters. Vince tries to remind him but he fails. Even Tilden cannot trace
out his son. Vince looks at his father’s face and the conversation is sharply between Tilden,
Vince and Shelly.

Vince: It’s Vince. I’m Vince..........

Shelly: Are you Vince father?

Tilden: Vince?

Shelly: This is supposed to be your son! Is he your son? Do you recognize him!
I’m just along for the ride here. I thought everybody knew each other!

Tilden: I had a son once, but we buried him. (92)

The partition of every character makes this play more effective. Dodge asks Vince to buy
Whiskey for him. Vince goes out to buy Whiskey for him. Tilden reveals the secret about his
family what happened cruelly in the past. Shelly frightened, when she heard the story of child’s
murder and dishonesty. Bradley enters the house tread heavily into the living room from outside
and instantly bullies Dodge. He insults and disgraces his elder brother until Tilden runs away
from stage. Bradley falls on the sofa, laying his artificial leg nearby the sofa. Next day morning,
Dodge makes loud voice to complaint about Vince still didn’t return. Halie returns to the house

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after enjoyed the last night with Father Dewis. She arrives in the house with armful of flowers.
When Halie enters in the house try to hide the Bradley’s artificial leg by the coat. Halie looks at
Shelly enquire about her. Shelly opposes Halie, how she was really stranger in her own house for
long years ago. They assigned murder and conceal the body in the backyard.

Shelly's righteous anger stands for declaration about their disloyal. The old man, Dodge
breaks down and describes his family's horrible secret from few years ago. In the past, Halie had
been surprisingly become pregnant. But she didn’t shares her bed with Dodge for last six years.
He knew that child was belonged to Tilden. Tilden has taken that baby at night in the fields,
singing and telling the stories for that baby. Dodge was not able to accept that child to grow up in
his house which was not his baby. Dodge descended the baby and planned to bury it in the
backyard. In that time, Vince arrives with some empty liquor bottles and throwing bottles and
makes them smash it into pieces. He is the only member of this family as youngest and strongest
of living man. Dodge abruptly declares about Vince as the heir of this estate. Dodge screams out
his final will, leave everything almost for his grandson, Vince. This statement is to make
resurrection of this family. Shelly demands Vince to get away from this house, but he refuses to
come. So, she moves away alone. At the moment, Dodge has silently died. Vince covers the
Dodge’s dead face with blanket and put the rose on his chest. After that, he lies down on the
sofa, gazing at the ceiling. The play finishes with the appearance of Tilden with Buried Child.
Shepard sketches the character of Dewis, who is disloyal to the society and Halie’s incest
relationship with her son.

REFERENCE

1. Shepard,Sam.“Seven Plays.” New York: The Dial Press, Inc.1984.

2. Brustein, Robert. "Shepard's Choice." New Republic 215.3/4 (15 July 1996): 27-29.

3. Opipari, Benjamin. "Shhhhhhame: silencing the family secret in Sam Shepard's Buried
Child." Style Spring-Summer 2010.

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A Peer Reviewed International Journal of Asian
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AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
IN SEARCH OF THE TRUTH: FROM
MYSTICISM TO MYSTICISMS

SHABIR HUSSAIN GANAIE (SHABIR MAGAMI)*

*Research Scholar,
Department of Englsih, AMU.

INTRODUCITON

Mysticism is more or less a spiritual discipline which assists a human soul to make contact with
the divine reality and a mystic is a person who has had a mystical experience on a very personal
level. A mystic tries to make his vision comprehensible because he knows that it is only a chosen
few who are granted divine consciousness and the perception to see beyond the material world.
In the words of F. E. Supergeon:“The mystic is somewhat in the position of a man who, in a
world of blind men, has suddenly been granted sight, and who gazing at the sunrise, and
overwhelmed by the glory of it, tries, however falteringly to convey to his fellows what he sees”
(4). Intuition, insight, instinct, visions, dreams, revelations and prophesies have a great role to
play as a person goes through a mystic phase of his life. A mystic always seeks a communion
with the ultimate reality. As he gains the conscious awareness of the presence of divinity, he
identifies himself with the spiritual truth and finally with God. In the opinion of William Philip
Downes, “ The mystic believes it is possible to pass beyond the sphere of logical thought, that is,
he believes it is possible not only to infer that God is, but, that it is possible to feel, to touch, to
become actually one with God” (621). Mystics have a firm belief that there is a deep reality
which lies beyond the physical and mundane day to day world of affairs. The physical reality in
their view is a superficial phenomenon and one has to delve deep in order to reach the spiritual
treasures that can lead a mortal to the fundamental truth. Mystical experience is generally
understood as the communion of a spiritually awakened human being with God on an individual
level rather than on a collective level. A mystic perceives an ultimate unity, a definitive oneness
in all things present as well as absent; but one cannot make sense of this unity and oneness using
his or her physical senses and reason. A mystic sees this unity as the very heart of the creation
and it becomes his life experience. F. E. Supergeon very aptly states: “ The true mystic then, in
the full sense of the term, is one who knows there is unity under diversity at the centre of all
existence, and he knows it by the most perfect of all tests for the person concerned, because he
has felt it. True mysticism – and this cannot be over-emphasized – is an experience and a life”
(6). After going through the mystical experience, a mystic always feels the sensation that some
higher and greater truth or power has laid a hand on him. The mystical experiences which are a

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part of mystic’s life are marked by varied feelings and insights. A mystic feels a sense of
timelessness as he sees a vision of infinity and eternity. He feels the sense of blessedness as he
sees himself in the presence of eternal truth. He has a sense of unity and totality as he observes
the things around him and feels that there is a common thread which goes through all the entities
of the universe. Since mystical experience does not come within the ambit of rationality a
mystic cannot describe the merits and meaning of his experiences sufficiently.

All the mystics do not follow the same path. In fact there are many ways to reach the
ultimate reality. Some mystics look outward and with the help of their physical senses observe
external world of nature. They with the help of their mystic fervor and commitment go beyond
the surface reality of physical world and find divinity at the root of everything. Some mystics on
the other hand look inward into their own selves and find the ultimate truth at the bottom of their
self and personality. Though mystics have to work very hard at a spiritual level in order to
discover the divinity in their own personality, still majority of them choose their own self as a
field of exploration while they strive to reach the one whose essence pervades and permeates
everything external as well as internal. The purpose and aim of almost every mystical path is to
experience divine consciousness, enlightenment and oneness with the ‘One’ who contains all.
But whichever the path a mystic chooses, it is always the soul which has a say over the ‘matter’.
The reason and the logic are discarded in favor of spiritual consciousness because the immediate
as well as the final goal of a mystic lies in the realm of spirituality rather than in the world of
substance. Supergeon says, “… the mystic believes that as the intellect is given us to apprehend
material things, so the spirit is given us to apprehend spiritual things, and that to disregard the
spirit in spiritual matters, and to trust reason is as foolish as if a carpenter, about to begin a piece
of work, were deliberately to reject his keenest and sharpest tools” (3). A mystic can undergo all
his experiences within the framework of a particular religion but quite often mystics have gone
beyond mainstream faith. The mystics generally seek out inner or esoteric meanings within
conventional religious doctrines. In fact mystics are less concerned with religious differences as
they care more about social and individual development. There have been mystics for whom all
religions are sacred and they believe that the essence of all religions is universal as all religions
lead to the same goal. They care about the growth of inner personality. Mysticism is dualistic if it
maintains a distinction between the self and the divine and it is nondualistic when it maintains
that there is an essential and close affinity between the self and the divine.

Christian mysticism, as it talks about the relationship between God and the soul has so
many diverse views about this relationship, but the purification of self and the reunion with God
is its ultimate goal. It believes that God and Man have got separated because of the fall of Man
and man in this world has to strive hard to achieve his divine status again which will become
possible once he reunites with God. Christian mysticism believes that the spark of divinity lies in
man itself and he needs development from within. He needs to care for his fellowmen in order to
reach the divinity. In the words of Northrop Frye: “The higher state of heaven is achieved by
those who have developed the God within them instead of the devil. Those who have fed the
hungry and clothed the naked are here, because they have realized the divine dignity of
man” (81).

Islamic mysticism is generally known as Sufism. Sufism is the spiritual Path of Islam.
Sufism has been described in different way by scholars writing in English but they all consider it

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as an interior, esoteric aspect of Islam. The western scholars call it Islamic mysticism because it
has some similarities with Christian mysticism and also with some other schools of mysticism.
Its main aim is cleansing of the spirit and turning ones heart away from all else but God. It helps
its adherents to know how to reach the Divine, how to purify the inner self and get rid of all that
is dross. What differentiates Sufism from Christian mysticism is that Sufism is a continuous
historical and even institutionalized movement in the Muslim world and it has millions of
adherents even at present time. In fact in the vast Muslim world there is hardly any area that does
not have a Sufi order or a Sufi tradition still at work and flourishing.
Kaballah is a kind of mysticism based on Judaism and it seeks out deeper interpretation
of Torah and other Mystical works. The interpreters go beyond the surface meanings of these
sacred scriptures. It is a set of esoteric teachings intended to clarify the relationship involving an
everlasting and inexplicable God and the physical and predetermined universe (the creation of
God).

In the Quaker view of Mysticism soul is an inner light which they see as a presence of
God in a human body.

Gnosticism sees creation as a struggle between the opposite forces of the Evil and the
Good, the forces of the light and the forces of the Dark. Gnostics see a sharp division between
material realm and a spiritual realm. The material realm in their view is under the influence of
dark and evil forces because of its division from a higher realm of spirituality.

So, there are umpteen ways, sometimes diverse and different, to interact and communicate
with the ultimate reality. Instead of mysticism we can now use the term mysticisms because there
are as many ways as possible to reach the truth.

WORKS CITED

BOOKS

1. Caroline F.E. Spurgeon, Mysticism in English Literature (The Project Gutenberg E Book of
Mysticism in English Literature by Caroline F. E. Spurgeon. Release Date: April 7, 20)

2. Northrop Frye, Fearful Symmetry: A Study of William Blake ( New Jersey: Princeton
University Press, 1947)

ARTICLE(S)

William Philip Downes, Mysticism, The Biblical World, vol 54, No.6 (Nov. , 1920) , pp.619-
624, The University of Chicago Press

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AJRSH:
ASIAN JOURNAL OF
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SCIENCE & HUMANITIES
PRESENCE OF DISPARITIES IN HUMAN
DEVELOPMENT AT MICRO LEVEL IN DEVELOPING COUNTRIES -
A STUDY IN PURULIA DISTRICT, WEST BENGAL, INDIA

MUKUNDA MISHRA*

*Assistant Professor, Department of Geography,


Dr. Meghnad Saha College, West Bengal, India.

ABSTRACT

Unequal development and its trend of steady magnification have been appeared as
the cause of multiple social and economic depreciations in India. The disparities in
human development at macro level, i.e. national and state level has been well
focused whereas analysis of micro-level disparities in this aspect has been ignored.
The development plans at presents thrust on decentralized plans where the micro
level sectoral and spatial variation of ‘surplus’ and ‘deficit’ in different dimensions
of development should be given immense importance. The structuring of a
management plan with a view of repairing the lacunas of underdevelopment and
equalized distribution of impulse of development requires the detailed profile of
existing pattern of development in different socio-economic dimensions of the target
region. Purulia district is one of the most backward districts in West Bengal in
perspective of human development. But the block level scenario of development
pattern explores the presence of intra-district disparity at a considerable magnitude.
The present study attempts to analyse this micro-level i.e. block level disparity in
human development with suitable statistical measurement and graphical
representation as well as examines different determinants leading to the present
pattern of development in this district.
______________________________________________________________________________

1.0. INTRODUCTION

The developing nations, at present, are experiencing the multi-faced economic, social and
cultural metamorphism at an accelerating rate. Indian society and economy also have not
succeeded to prove itself to be indifferent from this global trend. The quest of economic growth
cannot be denied in one hand, as well as the hard reality of unequal growth is seemed to be the
toughest challenge for the policy makers, intellectuals and social researchers. The causes of this
unequal development are multi-dimensional but the consequences are very clear and
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undoubtedly they are potential enough to weaken the social stability. Admittedly all of the social
endeavours do not lend themselves to easy explanations which seem to be hardly irrelevant for
the context of unequal development. The uncontrolled unequal development is strong enough to
increase vulnerability of prevailing poverty if the poverty is considered as the function of relative
differentiation of stock of resources, access to resources, physical quality of life, share of power
in economics, social and political decision making etc. between different individuals, groups,
communities or societies. Development has been appropriately conceptualized as a process,
which improves the quality of life of people. The history of development plans in India, both
centralized and decentralized could not show the enthusiastic result as most of the plans has been
terminated through the partial fulfilment of the target. In most of the cases the lack of flexibility
in the planning has been exposed as the tough challenge in gaining holistic success of the plans
where the primary emphasis should have to be given in this sector; as India is the country of
varieties of social, cultural, economic, lingual and religious group. The failure of a plan in this
respect would have every possibility to carry the benefits to a narrow part of population by
depriving the rest and the inequality tends to increase away. Regional disparities in India have
widened day by day (Joshi, 1997; Krishnan, 2001; Singh, 2006). Unchecked and
uncontrolled process of growth leads to this regional disparities (Rao, 1984). It was Fourth
Five Year Plan (1969-74) which marked for the initiation of decentralization of national
planning by introducing the district level plan. Further district level plan was decentralized at
block level, during the Sixth Five Year Plan (1980-85). The seventh plan (1985-90) emphasized
local area planning by stressing on demographic decentralization. The eighth plan (1992-97)
emphasized on building, and strengthening people’s institutions and making people active
participation within liberalization and privatization frame work. The main focus was on
population control, environmental protection and infrastructural development. The ninth plan
(1997-2002) aimed at growth with social justice and equity. The Planning Commission in its
tenth plan (2002-2007) advocates the area approach and aims to strengthen decentralization of
planning. Thus, the decentralized planning policy procedure was adopted to prepare village
plans by collecting village requirements at block levels and finally they were put together at
district level for district plans. But such attempts were confined only on paper. Removal of
regional imbalances in development has remained the avowed goal of planning in India
(Mohan, 2005). It is the fact that effort of decentralization in planning procedures in India is
mostly limited to the allotment of financial support up to the micro level administrative unit and
their expenditure through the local governments. One of the most aspired goals of decentralized
plans or local level plans is to mould the structure of plans necessarily as it would be best fitted
with the local demand and be capable enough to satisfy the problems at local level. But these
targeted goals are found to remain unsatisfied for almost all the plans when they are judged as
micro level study or research work. In such scenario it is important to identify the backward
regions of the county, state and even at district level in terms of development of major
components as well as to measure the level of disparities amongst different regions. Therefore,
present paper attempts to investigate micro-spatial disparities in terms of social, economic
and other opportunities. This would likely to be helpful for the planners to chalk-out
effective strategies to tackle the problem and ensure balanced development among different
regions of the country in general and micro level in particular.

The western part of the state of West Bengal, the represents the vast lateritic tracts
covered by the patches of dense deciduous forest (part of so called ‘Jangal Mahal’) and the abode
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of ‘Mahato’ community along with different tribal groups like Lodha-Sabar, Birhore, Bhumiz,
Tota, Khedia and mainly Santal. A large section of the population is disadvantaged by limited
job opportunity, very low per-capita income, low level of GDP, low rate of literacy, especially
female literacy, fragile condition of public health and above all the present political crisis leading
to least social security and vanished stability. Even after six decades of independence the
fulfilment of fundamental demands of food, cloth, shelter, health and education is seemed to be
more a fancy than a reality to the people of this area. The natural hindrance of poor resource
base, obviously, has posed a challenge against the process of development but this is not the only
cause present socio-economic backwardness in this region. The programmes undertaken so far,
targeting employment generation, income enhancement, development of physical quality of life,
betterment of public health etc. with the financial sponsorship of both State and Central
Government have shown a swift nose-diving graph of public response and people’s participation
in most of the cases. With the progress of time, the disparity between different segments of
population and different spatial units has been getting magnified; which is not a healthy
symptom at all for the people of the region, for their society and ultimately for the nation itself.

2.0. THE STUDY AREA

Purulia, the western-most district of West Bengal at present, making boundary with the
state of Jharkhand and Bihar, was included as Manbhum district in state of undivided Bihar
during independence. The district of Purulia was formed and merged with West Bengal on 1st
November 1956 by separating areas under 16 police stations of the then Bihar as per the
recommendation of the State Reorganization Commission. The district of Purulia has been
selected as the study area. The district is extended between 22043’ N – 23042’ N latitude and
85049’ E – 86054’ E longitude, covering a total area of 6259 sq. Km and accommodates 2536516
populations with an average population density of 405 persons per sq. Km. (Census of India –
2001). This is the land of infertile lateritic tracts.

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me 2, Issue 1 (January, 2012)                ISSSN 2249‐7
 
WEST BENGAL STATE 
WITHIN INDIA 
(Not to SScale) 

DISTRIICT PURULIA 
WITHIN WEST BENGA AL 
(No
ot to Scale) 

FIG – 1: LOCATIION OF TH
HE STUDY AREA I.E.. THE DIST
TRICT OF PURULIA
P
WITTH THE BL
LOCK BOUNDARY

T undulateed landscapee is characterrized by thee presence of a numberss of residuall hills


The
and hilloocks, narrow w river channnels with thee bank marggins dominatted by gully erosion, isoolated
forest paatch consistin ng of mainlyy Sal and Mahua.
M The climate is very
v rough; both
b the summmer
and wintter are experrienced in seevere form inn this districct (maximum 4 0 C in Junee and
m temp. is 45
minimum m temp. is 90 C in Jannuary averaggely). The soil s is hardlly supportivve to agricuultural
activitiess; the rain fed cultivationn is confinedd within onlyy one cropping session (basically Juuly to
October) in a year. Only
O 3391400 hectares land is considdered as cultivable land and only 19.43%
of cultivated area en njoys the oppportunity of
o irrigation facility. Buut this agricuultural activity is
limited too the river banks
b and loww land areass only. The district
d receiives the lowest rainfall (1150
(
mm on an a average) in i the state where
w the shhortage of raainfall from the normal often createes the
drought situation
s in the district (District Staatistical Hanndbook – Puurulia, 2008, BAES, Govvt. of
W.B.). Except
E a few urban centeers like Purullia Town, Adra, Asansoll etc. the resst of the distrrict is
economiccally backward where thhe hunger annd starvationn is not a verry rare inciddence and pooverty
prevails in
i its extremme form at most of the distant ‘hamleets’.

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3.0. OBJECTIVES OF THE STUDY

The main objectives of the study are;

3.1. To investigate the disparities in the context of human development at block level.

3.2. To examine the socio-economically backward areas and categorize them into
different levels of development.

3.3. To identify the factors behind the emergence and growth of disparities and to find
out interdependency among various determinants leading to the development.

4.0. DATABASE AND METHODOLOGY

The present study has traced on Secondary database mostly to satisfy the objectives
mentioned beforehand. The secondary data has been collected from the Census of India,
published from the Office of the Directorate of Census, Govt. of India; District Statistical
Handbook, published by Bureau of Applied Economics and Statistics, Govt. of West Bengal;
West Bengal Human Development Report, published by Govt. of West Bengal; West Bengal
State Domestic Production Report, published by Ministry of Information and Broadcasting,
Govt. of West Bengal etc. and from different relevant research articles published in journals,
magazines, newspaper report etc.

In the present analysis block has been taken as the component areal unit of the
study area. For the identification of the level of development, 25 indicators have been used
which are arranged under seven major components of development and they are exclusively
based on secondary sources. The information gathered from all such sources was analysed and
process to give the study a human development perspective. In the selection of the indicators, the
focus has been concentrated on the dictum of availability of the data for the selected indicators
for all the blocks of the study area.

The Development Index can be calculated using the following mathematical equation,

DIji = (Xij – MINi) / (MAXi - MINi)

Where, DIji indicates the Development Index of ith variable at jth unit of study; MAXi , MINi and
denotes the maximum and minimum value of ith variable; Xij represents original value to be
weighed between the value of ‘0’ and ‘1’. The average value of all the indicators in each
dimension is calculated. This may lead to express the spatial differentiation pattern of the status
of development.

Analysing the level of satisfaction in development perspective as well as working out the
magnitude of disparity are important thrust aspects of the present study. The blocks are classified
into different levels of development using the ‘Mean’ and ‘Standard Deviation’ value of different
indicators in different blocks for a particular dimension of human development. Primarily, for
each dimension, the blocks are categorized into two groups i.e. ‘blocks above average value of
indicators’ and ‘blocks below average value of indicators’ and two groups of blocks are

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represented by two different colour sheds. These groups are further sub-categorized into three
more levels i.e. ‘high’, ‘moderate’ and ‘low’ and represented by different sheds of a particular
colour.

5.0. ANALYSIS OF THE PATTERN OF UNEQUAL HUMAN DEVELOPMENT IN


DIFFERENT DIMENSIONS:

The spatial variation of the status of Socio-Economic development has been analysed on
the basis of the 25 indicators on seven different dimensions which are mentioned below.

TABLE: 1- LIST OF INDICATORS USED UNDER DIFFERENT DIMENSIONS FOR


ANALYSING SOCIO-ECONOMIC DISPARITY

Dimension Indicators Description

Education X1 No. of literate persons per 1000 population

X2 No of literate females per 1000 of rural females

X3 No. of teachers per 1000 of enrolled students in primary schools

X4 No. of teachers per 1000 of enrolled students in high schools

X5 No. of primary schools per 10000 population

X6 No. of secondary and H.S. schools per 10000 population

X7 No. of special and non-formal educational institute per 10000


population

Health X8 No. of primary health centre per 10000 population

X9 No. of beds per 10000 population

X10 No. of doctors per 1000 population

X11 No. of public family welfare centre per 10000 population

Agriculture X12 Net sown area as percentage of total area

X13 Area under more than one crop as percentage of Net Sown Area

X14 Amount of food-crop production per head

X15 Area under irrigation as percentage of total area

Livestock X16 No. of ADAC per 10000 livestock animals

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X17 No. of veterinary personnel per 10000 livestock animal

Small Scale X18 No. of SSI and LSI unit per 10000 population
Industry

Banking & X19 No. of commercial and gramin banks per 10000 of population
Finance
X20 No. of co-operative societies per 10000 of population

Elimentary X21 Electrified mouzas as percentage of total nos. of mouza


Facilities
X22 No. of post offices per 10000 population

X23 Length of surfaced road per sq. Km of area

X24 No. of cinema houses per 10000 population

X25 No. of public library per 10000 population

The method of classifying the development levels into three categories of medium, high
and low invariably has been that of standard deviation and mean. In this method, levels of
development by district have been arranged in ascending order and their mean and standard
deviations have been worked out. The medium category includes all those blocks whose
development level varies between ‘mean and ± 0.5 standard deviation’. The high category
incorporates those blocks whose values fall above ‘mean and + 0.5 standard deviation’. Similarly,
low category includes all those blocks of Purulia district whose shows development level of
below ‘mean and - 0.5 standard deviation’.

5.1. EDUCATION

Education is a crucial social factor that initiates the process of social, economic and
cultural development. It is the most important single factor in achieving rapid economic
development and in creating sound social order found upon the value of freedom, social
justice and equal opportunity (Arora, 1979). It is considered as basic permanent need of
individuals. It’s closely associated with the socio- economic development of a region. Education
heads the list of all social infrastructures for its immense contribution to different part of socio
economic betterment.

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TABLE: 2- VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
EDUCATIONAL STATUS

Sl. No. Blocks X1 X2 X3 X4 X5 X6 X7 Average


1 Arsha 0.12 0.20 0.22 0.09 0.00 0.23 0.29 0.16
2 Bagmundi 0.17 0.26 0.51 0.13 0.20 0.26 0.40 0.27
3 Balarampur 0.11 0.26 0.25 0.03 0.47 0.20 0.56 0.27
4 Barabazar 0.41 0.45 0.69 0.37 0.40 0.27 0.28 0.41
5 Jaypur 0.35 0.33 0.22 0.00 0.17 0.32 0.00 0.20
6 Jhalda-I 0.56 0.57 0.49 0.47 0.03 0.40 0.68 0.46
7 Jhalda-II 0.00 0.00 0.06 0.06 0.22 0.00 0.71 0.15
8 Bandowan 0.22 0.39 1.00 0.66 0.93 0.43 0.41 0.58
9 Hura 0.84 0.88 0.86 1.00 0.58 0.68 0.53 0.77
10 Manbazar-I 0.63 0.67 0.91 0.40 0.72 0.08 0.37 0.54
11 Manbazar-II 0.54 0.58 0.99 0.81 1.00 0.51 0.29 0.67
12 Puncha 0.75 0.80 0.87 0.86 0.93 0.74 0.73 0.81
13 Purulia-I 0.59 0.58 0.00 0.56 0.77 0.05 0.81 0.48
14 Purulia-II 0.69 0.67 0.22 0.56 0.18 0.31 0.55 0.45
15 Kashipur 1.00 1.00 0.47 0.32 0.52 1.00 0.27 0.66
16 Neturia 0.67 0.78 0.38 0.64 0.69 0.46 0.58 0.60
17 Para 0.66 0.65 0.08 0.30 0.15 0.20 0.32 0.34
18 Raghunathpur-I 0.64 0.78 0.24 0.29 0.48 0.47 0.61 0.50
19 Raghunathpur-II 0.57 0.67 0.12 0.23 0.81 0.19 0.01 0.37
20 Santuri 0.71 0.83 0.57 0.59 0.72 0.63 0.51 0.65

MEAN 0.47
N.B.: Details in Appendix Table A1, A2 and A3
S.D. 0.28

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Table : 2 reveals the fact that the highest level of educational facilities is observed in the
block of Puncha (0.81) and it is followed by the blocks of Hura(0.77) and Manbazar-II (0.67)
where the lowest rank is possessed by the block
of Arsha (0.16) and it is preceded by the block
Jhalda-II (0.15). From Figure: 2 , it is clearly
observed that the blocks along the boundary of
the neighbouring state Jharkhand are more
backward in the field of education except the
block of Jhalda-I (0.46). The block of Purulia-I
(0.48), within which the district headquarter,
Purulia town is situated, shows a moderate status
of development in attaining educational facilities.
Though there are three degree colleges and a
numbers of primary and secondary schools
within the Purulia municipal area, the mostly
backward peripheral rural areas within the block
diminishes the effect of development of the urban
centre itself. A high magnitude of disparity
prevails within the district if the educational
facilities are concerned.

FIG: 2 - THE BLOCK LEVEL DISPARITY IN EDUCATIONAL FACILITIES IN


PURULIA DISTRICT

5.2. HEALTH

Health condition of any person shows its economic strength and working ability. Health is
most important in the way of development. Many vital links between health and development
are thus seen as interacting phenomena with far reaching implications. One such implication
is the realization that the availability of health services is only one of many contributions to health
development (UN, 1984). Better health condition of population ensures higher capabilities
towards resource mobilization, income generation and GDP enhancement that unitedly invite
development.

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TABLE: 3 - VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
HEALTH AND MEDICAL FACILITIES

Sl. No. Blocks X8 X9 X10 X11 Average


1 Arsha 0.07 0.01 0.01 0.38 0.12
2 Bagmundi 0.40 0.04 0.02 0.61 0.27
3 Balarampur 0.35 0.49 0.16 0.39 0.35
4 Barabazar 0.00 0.00 0.03 0.11 0.03
5 Jaypur 0.40 0.03 0.09 0.31 0.21
6 Jhalda-I 0.14 0.01 0.00 0.14 0.07
7 Jhalda-II 0.10 0.03 0.09 0.29 0.13
8 Bandowan 0.72 0.04 0.14 0.91 0.45
9 Hura 0.29 0.05 0.09 0.41 0.21
10 Manbazar-I 0.08 0.04 0.11 0.59 0.20
11 Manbazar-II 1.00 0.03 0.19 1.00 0.56
12 Puncha 0.43 0.02 0.02 0.39 0.22
13 Purulia-I 0.30 1.00 0.71 0.17 0.54
14 Purulia-II 0.02 0.01 0.00 0.00 0.01
15 Kashipur 0.17 0.27 0.33 0.56 0.33
16 Neturia 0.62 0.06 0.09 0.70 0.37
17 Para 0.07 0.01 0.04 0.06 0.04
18 Raghunathpur-I 0.22 0.13 0.38 0.37 0.28
19 Raghunathpur-II 0.26 0.03 0.03 0.24 0.14
20 Santuri 0.59 0.82 1.00 0.64 0.76

MEAN 0.26
S.D. 0.28 N.B.: Details in Appendix Table A4 and A5

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The average value of all indicators under


the health and medical segments (Table-3) reveals
the fact that all the blocks suffer from the
inadequate health and medical facilities and as a
whole, the district is highly neglected in the
development of essential health and medical
facilities for a long span of time. The highest level
is found in the block of Santuri (0.76) and lowest
value is found in the block of Purulia-II (0.01),
exposing a high magnitude of disparity
undoubtedly. The Deben Mahato Sadar Hospital,
located at Purulia town is the only one destination
to available the treatment during a considerable
threat on health condition. Another striking feature
is that only the two blocks i.e. Manbajar-II and
Kashipur have more than four Primary health
centres. The doctor-Population ratio is a matter of
anxiety in true sense and the best figure is ‘31
doctors per 100000 population’ - in Purulaia – I
block. The residents of the entire district have to FIG: 3 - THE BLOCK LEVEL
depend on either Purulia town or on distant DISPARITY IN HEALTH AND
Asansol to avail health check up, emergency
MEDICAL FACILITIES IN
medicine etc.
PURULIA DISTRICT
5.3. AGRICULTURE

The agriculture is the fundamentals occupation in the district though the agricultural
activity faces a tough hindrance due to the irregularity and paucity of rainfall, infertile red
lateritic soil etc. The agriculture accounts for about 75 percent of the total income of the district.
Aman rice is the principal crop in this district and most of the agricultural fields are utilized
under a single cropping session in a year.

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TABLE: 4 - VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
AGRICULTURE

Sl.No. Blocks X12 X13 X14 X15 Average


1 Arsha 0.58 0.44 0.48 0.36 0.46
2 Bagmundi 0.05 0.71 0.45 0.05 0.32
3 Balarampur 0.78 0.00 0.50 0.27 0.39
4 Barabazar 0.89 0.26 0.00 0.33 0.37
5 Jaypur 0.61 0.39 0.29 0.26 0.39
6 Jhalda-I 0.54 0.24 0.64 0.27 0.42
7 Jhalda-II 0.67 0.33 0.51 1.00 0.63
8 Bandowan 0.16 0.59 0.28 0.27 0.32
9 Hura 0.54 0.43 0.67 0.13 0.44
10 Manbazar-I 0.39 0.25 0.81 0.00 0.36
11 Manbazar-II 0.68 0.35 1.00 0.16 0.55
12 Puncha 0.64 0.22 0.95 0.11 0.48
13 Purulia-I 1.00 0.36 0.30 0.13 0.45
14 Purulia-II 0.66 0.55 0.14 0.12 0.37
15 Kashipur 0.57 0.28 0.38 0.07 0.33
16 Neturia 0.00 0.00 0.18 0.08 0.07
17 Para 0.53 0.37 0.18 0.46 0.38
18 Raghunathpur-I 0.40 0.68 0.34 0.18 0.40
Raghunathpur-
19 II 0.66 1.00 0.38 0.10 0.54
20 Santuri 0.75 0.37 0.54 0.44 0.53
Mean 0.41
S.D. 0.27
N.B.: Details in Appendix Table A6 and A7

From table: 4, it is clearly observed that the highest value of the average of all indicators
related to agriculture is found in the block of Jhalda-II (0.63) where the lowest value is found in
the block of Neturia (0.07) due to the utilization of greater portion of the land in the mining
activities. Figure – 4 reveals that the blocks along the Kangsabati basin shows better level in
agriculture due to the extension of irrigation facilities and the availability of fertile alluvial tract.
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5.4. LIVESTOCK

Livestock is the alternative source of occupation in this district, mainly predominated that
portion of the land where the scope of agriculture is minimum. Generally, the single cropping
session in the most of the agricultural lands leads to undergo the inhabitants in cattle-raising and
poultry firming activities.

FIG: 4: THE BLOCK LEVEL DISPARITY IN AGRICULTURE IN PURULIA


DISTRICT

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TABLE: 5 - VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
LIVESTOCK
Sl. No. Blocks X16 X17 Average

1 Arsha 0.54 0.36 0.45

2 Bagmundi 0.35 0.47 0.41

3 Balarampur 0.32 0.28 0.30

4 Barabazar 0.69 0.00 0.34

5 Jaypur 0.35 0.33 0.34

6 Jhalda-I 0.33 0.70 0.52

7 Jhalda-II 0.29 0.20 0.25

8 Bandowan 0.57 0.53 0.55

9 Hura 0.70 0.90 0.80

10 Manbazar-I 0.27 0.22 0.24

11 Manbazar-II 0.55 0.51 0.53

12 Puncha 0.54 0.56 0.55

13 Purulia-I 0.00 0.56 0.28

14 Purulia-II 0.47 0.38 0.42

15 Kashipur 0.38 0.39 0.38

16 Neturia 0.70 0.28 0.49

17 Para 0.33 0.14 0.23

18 Raghunathpur-I 0.58 1.00 0.79

19 Raghunathpur-II 0.43 0.51 0.47

20 Santuri 1.00 0.26 0.63

Mean 0.45 N.B.: Details in Appendix Table A8

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S.D. 0.23

Table-5 and Figure- 5 clearly indicate that the livestock


activities are more dominant in those blocks which are
agriculturally backwards in the districts. The bocks
along the Jharkhand border areas with a greater portion
of the land covered by dense deciduous forest are
potentially advanced in this particular activity to
sustain the daily livelihood. The commercial mode of
livestock is not performed here, rather it is performed
by the tribal families mainly in an intensive subsistence
mode. The block of Para (1.00) shows the highest
status of development in this field within the district
where as the blocks of Hura (0.03) and Kashipur

FIG: 5: THE BLOCK LEVEL DISPARITY IN LIVESTOCK ACTIVITIES IN


PURULIA DISTRICT
(0.04), seek the least facilities in this regard. The livestock activities is mostly suffered from the
lack of required nos. of veterinary personnel and the unavailability of required nos. of veterinary
hospital and animal breeding centre within the districts.

5.5. SMALL SCALE INDUSTRY

The poor mineral resource base, lack of adequate human resources and above all the
unavailability of required infrastructure lead to underdevelopment of this region towards the
establishment of potential medium and large scale industrial units which may have the substitute
compensation of the naturally stricken agricultural backwardness of this districts. Depending on
the local coal mine (mainly at Neturia block) and a considerable amount of limestone and
bauxite some sponge iron factories have been developed. Mainly the development in this sector
is merely limited to establishment of a nos. of Small Scale Industrial Unit only.

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TABLE: 6 - VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
SMALL SCALE INDUSTRIAL DEVELOPMENT

No. of
No. of SSI
Running
Unit per Highest Lowest Indicator
Sl. No. C.D. Blocks SSI Unit Population
100,000 of Value Value value
within
Population
the block

n P FWC Vmax Vmin X18


1 Arsha 36 129148 27.87 0.08
2 Bagmundi 27 112448 24.01 0.07
3 Balarampur 86 118102 72.82 0.25
4 Barabazar 41 146927 27.91 0.08
5 Jaypur 52 111768 46.52 0.15
6 Jhalda-I 204 115748 176.24 0.65
7 Jhalda-II 41 123714 33.14 0.10
8 Bandowan 10 83694 11.95 0.02
9 Hura 44 127443 34.53 0.11
10 Manbazar-I 73 127601 57.21 262.52 7.04 0.19
11 Manbazar-II 6 85253 7.04 0.00
12 Puncha 41 108129 37.92 0.12
13 Purulia-I 334 125318 266.52 1.00
14 Purulia-II 38 142707 26.63 0.08
15 Kashipur 143 187038 76.46 0.27
16 Neturia 21 90649 23.17 0.06
17 Para 106 174620 60.70 0.21
Raghunathpur-
41 103786 39.50 0.13
18 I
Raghunathpur-
10 99226 10.08 0.01
19 II
20 Santuri 25 69587 35.93 0.11

Mean 0.18 N.B.: Details in Appendix Table A9

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S.D. 0.24
A total nos. of 9244 Small Scale Industrial unit
are running and a total of 56620 persons are
engaged in these units registered under C & SSI
Dept., Govt. of West Bengal. Most of these units
are concentrated within the blocks of Jhalda – I
(204 uits comprising maily the cottage based lack
industry) and Purulia - I (334 units comprising
mainly dairy, food processing, handicraft, stone
crasher etc.). The emphasis should be given an
establishing small scale industries based on the
local resources to develope the socio-economic
condition of this kind of backward region.
Besides this initial small scale investment would
be able to accelerate the infrastructural
development in this region asa well as to act as an
inertia to bring-forth large scale investment in this
FIG: 6: THE BLOCK LEVEL DISPARITY IN THE DISTRIBUTION OF SMALL
SCALE INDUSTRIES IN PURULIA DISTRICT
region.

5.6. BANKING AND FINANCE

The banking and finance sector is one of the most weakened sector in the perspective of
socio-economic development in this district. All the blocks are served by a few nos. of branches
of commercial banks, rather the gramin banks are playing the important role in this concern.

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TABLE: 7

VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN BANKING


AND FINANCIAL SERVICES

Sl. No. Blocks X19 X20 Average


1 Arsha 0.19 0.33 0.26
2 Bagmundi 0.32 0.42 0.37
3 Balarampur 0.27 0.00 0.14
4 Barabazar 0.16 0.36 0.26
5 Jaypur 0.18 0.29 0.24
6 Jhalda-I 0.42 0.17 0.30
7 Jhalda-II 0.45 0.50 0.47
8 Bandowan 0.28 0.42 0.35
9 Hura 0.00 0.05 0.03
10 Manbazar-I 0.27 0.48 0.37
11 Manbazar-II 0.51 0.40 0.46
12 Puncha 0.32 0.34 0.33
13 Purulia-I 0.17 0.22 0.20
14 Purulia-II 0.43 0.65 0.54
15 Kashipur 0.01 0.07 0.04
16 Neturia 0.17 0.28 0.23
17 Para 1.00 1.00 1.00
18 Raghunathpur-I 0.38 0.85 0.61
19 Raghunathpur-II 0.31 0.59 0.45
20 Santuri 0.48 0.47 0.48

Mean 0.36
S.D. 0.23 N.B.: Details in Appendix Table A10

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Three blocks -Raghunathpur-1, Santuri and Hura


shows considerably advanced figure in this respect
and they are followed by the blocks of Puncha,
Neturia, Manbazar-II, Raghunathpur –II and
Bandowan. The only block along Bengal-Jharkhand
state boundary, i.e. Jhalda- I is an exception to be
included in the list of considerably advanced block
in banking and financial sector. All the blocks
requires more branches of commercial and gramin
banks for service of the population and encouraging
micro-savings for the betterment of the poor
financial condition of the district.

FIG: 7: THE BLOCK LEVEL DISPARITY IN BANKING AND FINANCIAL


SERVICES IN PURULIA DISTRICT
5.7. ELEMENTARY FACILITIES

The provision of different elementary facilities like surfaced road, safe drinking water,
power supply, arrangement of recreational units etc. is the moral responsibility of the state to
provide to its inhabitants and it leads to enhance the quality of life ensuring the comfortable
livelihood. In respect to different elementary facilities different blocks are enjoying different
levels of varying types of these facilities which can be revealed from the table below,

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TABLE: 8 - VALUE OF DIFFERENT INDICATORS SHOWING THE DISPARITY IN
PROVISION OF ELEMENTARY FACILITIES

Sl. No. Blocks X21 X22 X23 X24 X25 Average


1 Arsha 0.74 0.13 0.00 0.02 0.30 0.24
2 Bagmundi 0.53 0.67 0.00 0.27 0.40 0.37
3 Balarampur 0.66 0.11 0.35 0.08 0.56 0.35
4 Barabazar 0.49 0.22 0.00 0.18 0.15 0.21
5 Jaypur 0.34 0.41 0.00 0.13 0.39 0.25
6 Jhalda-I 0.75 0.00 0.36 0.40 0.39 0.38
7 Jhalda-II 0.63 0.20 0.00 0.05 0.19 0.21
8 Bandowan 0.00 0.27 0.00 0.59 0.94 0.36
9 Hura 1.00 0.56 0.33 0.30 0.69 0.58
10 Manbazar-I 0.40 0.33 0.00 0.57 0.66 0.39
11 Manbazar-II 0.29 1.00 0.00 0.16 0.87 0.46
12 Puncha 0.76 0.76 0.00 0.63 0.82 0.59
13 Purulia-I 0.82 0.43 1.00 1.00 0.68 0.78
14 Purulia-II 0.90 0.65 0.00 0.20 0.30 0.41
15 Kashipur 0.99 0.26 0.22 0.00 0.01 0.30
16 Neturia 0.76 0.21 0.46 0.30 0.94 0.54
17 Para 0.81 0.24 0.24 0.05 0.00 0.27
18 Raghunathpur-I 0.80 0.16 0.80 0.35 0.56 0.53
19 Raghunathpur-II 0.75 0.04 0.00 0.22 0.63 0.33
20 Santuri 0.81 0.43 0.00 0.34 1.00 0.52

Mean 0.40
S.D. 0.32 N.B.: Details in Appendix Table A11 and A12

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The average value comprising all the indicators
related to the elementary facilities (see table no.
8) shows the unequal distribution of elementary
facilities in different blocks. The block of
Purulia-I which accommodates Purulia Town,
the district headquarter and two adjacent blocks,
i.e. Puncha and Hura are found advanced in
availing different elementary facilities. All the
blocks along the western periphery of the district
lay far behind in this dimension of development.
A very high magnitude of disparity observed in
case of civil electrification status, surfaced road
density as well as the source of entertainment
like cinema houses etc. The scope of availing
the service of public library is concentrated only
around the district head quarters and within the
block head quarters up to certain extent. The
presence of these elementary facilities enables
the population in easy accessing the resources,
getting convenient mode of living, reducing
psychological stresses which would accompany the process of development passively.

FIG: 8: THE BLOCK LEVEL DISPARITY IN PROVISION OF DIFFERENT


ELEMENTARY FACILITIES IN PURULIA DISTRICT
6.0. CONCLUSIONS

The analysis brings into sharp focus the spatial pattern of variation in the level of
development of social infrastructure. The study reveals interesting insight into the issue of
regional disparities in term of development in Purulia district. There is wide micro-regional
disparities exist within the district. There are mixed signals on the whole of Purulia district
convey a sense of vigorous disparities in sectoral and spatial development.

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FIG: 9: THE BLOCK LEVEL SOCIO-ECONOMIC DISPARITY IN PURULIA


DISTRICT (COMPRISING AVERAGE VALUE OF ALL DEVELOPMENT
INDICATORS)

The overall status of socio economic inequality can be revealed from the figure 9,
representing the classification of the blocks as per the overall status of socio-economic
development based on the average value of all 25 indicators utilized under seven different
dimensions. In this classification the blocks attaining the value of Development Index (DI) more
than ‘0.80’ are considered to have highly developed socio economic status and the blocks
attaining the value of DI as less than ‘0.5’ are considered to be backward blocks in respect to
socio-economic development; the rest intermediate blocks are considered to have medium level
of socio-economic development (following the scheme of classification of countries as per the
value of HDI by UNDP, found in Human Development Report, 2001 – 2010). The most striking
feature in this concern is that no blocks found to attain the value of Development Index more
than 0.80. Only five blocks (out of 20 blocks) i.e. Hura, Purulia –I, Manbazar – II, Puncha and
Santuri score for medium category of Socio-economic development where as rest 15 blocks
having low level of development. While the disparity is being analysed in different dimension of
development separately, the blocks put forth moderate to high magnitude of disparity but while
the all over average is calculated then the value shows a widening low level and a pocket of
medium level of development in the district. This scenario clearly indicates that different blocks
or group of blocks remain backward in different dimension of development i.e. the impulse of
socio-economic development have not reached evenly to each and every part of the district.
Another distinct feature is visible here, that all the blocks along the West Bengal – Jharkhand
state boundary shows the low level of development (and the five moderately developed blocks

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are adjacent to neighbouring Bankura District) ; this area lies under development in each broad
component/group of socio- economy i.e., education, health, agriculture, livestock, industry,
finance and different elementary facilities like transport, electricity, recreation etc. These areas
have failed to accept the impulses of development to grass root level. This posses a great
challenge for planner not only to plan for even dispersal of social infrastructures all
through the government but also prepare specific planning strategy for the backward
area/blocks so as to enable them to come into the main stream within a short span of time.
Failing which growth will pass sizeable chunk of the district population keeping them
perpetually in the backward of development. The general picture that emerged shows relatively
high level of development in the central towards eastern part of the study area. These blocks are
located nearer to the economic, cultural and administrative capital of the district whereas it tends
to decline westward to records low level development in the light of all the indicators. No
doubt, certain areas are more conductive to fetch overall prosperity to the people of those
areas in comparison of other areas. A concerned effort is paramount in order to enhance the
overall economy of all the blocks of the district. In fact district is a very small region
therefore much attention is not paid pertaining to the issue of regional disparities in
development. However, the analysis demonstrated that the issue cannot be ignored further. The
district Purulia itself is one of the most backward districts in the state of West Bengal and it
ranked 16th out of 17 districts under calculation with a poor value of HDI as ‘0.45’ only (West
Bengal Human Development Report 2004, Dept. of Planning and Development, Govt. of West
Bengal). Within such a district of depressed human development the magnitude of inter-block
level disparity in different aspect of socio economic development is undoubtedly an issue worthy
to be further investigation. Admittedly, unequal development is often seen more depreciative than
that of the slow rate of equal development in social and economic context. The development
planning for societal and economic betterment to be chalked out in such a way that it should
ensure the development of each and every sector as per requirement. Considering district as a unit
of development during plan preparation may result into a wrong outcome from the plan execution.
Each and every part of the districts is equally neither developed nor backward in all the
dimensions of development. During planning formulation and fund allocation, the micro-spatial
differentiation of existing development status require to be analysed carefully leading to ensure
the distribution of developmental thrust as proportional to the existing rate of underdevelopment
of different micro-spatial units; and obviously this is more essential for known underdeveloped
areas of a country.

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Pillay A. P., 1931. Welfare Problems in Rural India, first ed. D.B. Taraporevala Sons &
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APPENDIX

TABLE: A1 – CALCULATION OF INDICATORS X1, X2 AND X3

Literacy
Among
Gross No. of
Rural No.
Literacy Primary
Female of
Rate Indica Indica School Indica
C.D. (% to Prima Populat
(% to tor tor per tor
Blocks total ry ion
total value value 10,000 value
rural Scho
populati populati
Sl. female ol
on) on
N populati
o. on)
(n/P)10
L X1 LR X2 n P X3
000
1 Arsha 46.00 0.12 23.60 0.20 134 129148 10.38 0.22
2 Bagmundi 46.90 0.17 25.10 0.26 139 112448 12.36 0.51
Balarampu
45.80 0.11 25.10 0.26 125 118102 10.58 0.25
3 r
4 Barabazar 51.20 0.41 30.20 0.45 200 146927 13.61 0.69
5 Jaypur 50.10 0.35 26.90 0.33 116 111768 10.38 0.22
6 Jhalda-I 53.80 0.56 33.20 0.57 164 133620 12.27 0.49
7 Jhalda-II 43.80 0.00 18.40 0.00 115 123714 9.30 0.06
8 Bandowan 47.70 0.22 28.50 0.39 132 83694 15.77 1.00
9 Hura 59.00 0.84 41.20 0.88 189 127443 14.83 0.86
Manbazar-
55.10 0.63 35.90 0.67 193 127601 15.13 0.91
10 I
Manbazar-
53.50 0.54 33.40 0.58 134 85253 15.72 0.99
11 II
12 Puncha 57.30 0.75 39.10 0.80 161 108129 14.89 0.87
13 Purulia-I 54.40 0.59 33.50 0.58 212 239124 8.87 0.00
14 Purulia-II 56.20 0.69 35.70 0.67 148 142707 10.37 0.22
15 Kashipur 61.80 1.00 44.40 1.00 227 187038 12.14 0.47
16 Neturia 55.80 0.67 38.70 0.78 104 90649 11.47 0.38
17 Para 55.60 0.66 35.20 0.65 165 174620 9.45 0.08
Raghunath
55.30 0.64 38.60 0.78 132 125718 10.50 0.24
18 pur-I
Raghunath
54.00 0.57 35.70 0.67 96 99226 9.67 0.12
19 pur-II
20 Santuri 56.50 0.71 40.00 0.83 89 69587 12.79 0.57

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TABLE: A2– CALCULATION OF INDICATORS X4 AND X5.

No. of
No. of
No. No. of Special
High and
of Special and Non-
HS
High and Formal
Populatio School Indicat Indicat
C.D. Blocks and Non- School
n per or value or value
H.S. formal per
10,000
Sl. Scho Institutio 10,000
populatio
No ol n populatio
n
. n
(n/P)100 (N/P)100
P n X4 N X5
00 00
1 Arsha 129148 12 0.93 0.09 90 6.97 0.00
2 Bagmundi 112448 11 0.98 0.13 102 9.07 0.20
3 Balarampur 118102 10 0.85 0.03 141 11.94 0.47
4 Barabazar 146927 19 1.29 0.37 165 11.23 0.40
5 Jaypur 111768 9 0.81 0.00 98 8.77 0.17
6 Jhalda-I 133620 19 1.42 0.47 84 7.26 0.03
7 Jhalda-II 123714 11 0.89 0.06 115 9.30 0.22
8 Bandowan 83694 14 1.67 0.66 141 16.85 0.93
9 Hura 127443 27 2.12 1.00 167 13.10 0.58
10 Manbazar-I 127601 17 1.33 0.40 186 14.58 0.72
11 Manbazar-II 85253 16 1.88 0.81 150 17.59 1.00
12 Puncha 108129 21 1.94 0.86 182 16.83 0.93
13 Purulia-I 239124 37 1.55 0.56 190 15.16 0.77
14 Purulia-II 142707 22 1.54 0.56 127 8.90 0.18
15 Kashipur 187038 23 1.23 0.32 234 12.51 0.52
16 Neturia 90649 15 1.65 0.64 130 14.34 0.69
17 Para 174620 21 1.20 0.30 150 8.59 0.15
Raghunathp
125718 15 1.19 0.29 125 12.04 0.48
18 ur-I
Raghunathp
99226 11 1.11 0.23 154 15.52 0.81
19 ur-II
20 Santuri 69587 11 1.58 0.59 102 14.66 0.72

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TABLE: A3 – CALCULATION OF INDICATORS X6 AND X7.

No. of
Teache No. of
No of No of
No of rs per No of Teacher
studen studen
Teache 1000 Teache s per
ts in Indicat ts in Indicat
rs in of rs in 1000 of
C.D. Blocks Primar or Primar or
Primar Studen High Student
y value y value
y ts in School s in
Schoo Schoo
Sl. schools Primar s High
ls ls
No y schools
. schools
(t/s)10 (T/S)10
t s X6 T S X7
00 00
1 Arsha 254 13688 18.56 0.23 78 4477 17.42 0.29
2 Bagmundi 204 10819 18.86 0.26 58 2977 19.48 0.40
3 Balarampur 250 13877 18.02 0.20 56 2515 22.27 0.56
4 Barabazar 362 19049 19.00 0.27 54 3124 17.29 0.28
5 Jaypur 247 12506 19.75 0.32 32 2583 12.39 0.00
6 Jhalda-I 258 12343 20.90 0.40 126 5188 24.29 0.68
7 Jhalda-II 205 13509 15.18 0.00 53 2134 24.84 0.71
8 Bandowan 223 10470 21.30 0.43 52 2657 19.57 0.41
9 Hura 505 20183 25.02 0.68 164 7530 21.78 0.53
10 Manbazar-I 319 19532 16.33 0.08 62 3294 18.82 0.37
11 Manbazar-II 261 11600 22.50 0.51 47 2700 17.41 0.29
12 Puncha 430 16690 25.76 0.74 98 3888 25.21 0.73
13 Purulia-I 568 35749 15.89 0.05 207 7755 26.69 0.81
14 Purulia-II 403 20513 19.65 0.31 145 6599 21.97 0.55
15 Kashipur 557 18848 29.55 1.00 98 5700 17.19 0.27
16 Neturia 234 10718 21.83 0.46 65 2889 22.50 0.58
17 Para 388 21410 18.12 0.20 83 4627 17.94 0.32
Raghunathp
358 16360 21.88 0.47 45 1952 23.05 0.61
18 ur-I
Raghunathp
204 11394 17.90 0.19 35 2804 12.48 0.01
19 ur-II
20 Santuri 201 8286 24.26 0.63 82 3827 21.43 0.51

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TABLE: A4 – CALCULATION OF INDICATORS X8 AND X9.

No. of
No. of No. of No. of
Primar Indicat Indicat
Populati PHC per Availab Beds per
Sl. C.D. Blocks y or or
on 100,000 le beds 100,000
No Health value value
population in total population
. Centre
(n/P)1000 (b/P)1000
P n X8 b X9
00 00
1 Arsha 129148 3 2.32 0.07 25 19.36 0.01
2 Bagmundi 112448 4 3.56 0.40 37 32.90 0.04
3 Balarampur 118102 4 3.39 0.35 278 235.39 0.49
4 Barabazar 146927 3 2.04 0.00 20 13.61 0.00
5 Jaypur 111768 4 3.58 0.40 29 25.95 0.03
6 Jhalda-I 115748 3 2.59 0.14 25 18.71 0.01
7 Jhalda-II 123714 3 2.42 0.10 36 29.10 0.03
8 Bandowan 83694 4 4.78 0.72 25 29.87 0.04
9 Hura 127443 4 3.14 0.29 44 34.53 0.05
10 Manbazar-I 127601 3 2.35 0.08 38 29.78 0.04
11 Manbazar-II 85253 5 5.86 1.00 22 25.81 0.03
12 Puncha 108129 4 3.70 0.43 27 24.97 0.02
13 Purulia-I 125318 4 3.19 0.30 1123 469.63 1.00
14 Purulia-II 142707 3 2.10 0.02 25 17.52 0.01
15 Kashipur 187038 5 2.67 0.17 255 136.34 0.27
16 Neturia 90649 4 4.41 0.62 36 39.71 0.06
17 Para 174620 4 2.29 0.07 28 16.03 0.01
Raghunathp
103786 3 2.89 0.22 93 73.98 0.13
18 ur-I
Raghunathp
99226 3 3.02 0.26 25 25.20 0.03
19 ur-II
20 Santuri 69587 3 4.31 0.59 270 388.00 0.82

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TABLE: A5 – CALCULATION OF INDICATORS X10 AND X11

No. of No. of
No. of Public Public
No. of
Doctors Indicat Famil family Indicat
Populati Availab
C.D. Blocks per or y welfare or
on le
Sl. 100,000 value Welfa centre per value
Doctors
No population re 100,000
. Centre population
(n/P)1000 (w/P)1000
P n X10 w X11
00 00
1 Arsha 129148 4 3.10 0.01 25 19.36 0.38
2 Bagmundi 112448 4 3.56 0.02 24 21.34 0.61
3 Balarampur 118102 11 9.31 0.16 23 19.47 0.39
4 Barabazar 146927 6 4.08 0.03 25 17.02 0.11
5 Jaypur 111768 7 6.26 0.09 21 18.79 0.31
6 Jhalda-I 115748 4 2.99 0.00 20 17.28 0.14
7 Jhalda-II 123714 8 6.47 0.09 23 18.59 0.29
8 Bandowan 83694 7 8.36 0.14 20 23.90 0.91
9 Hura 127443 8 6.28 0.09 25 19.62 0.41
10 Manbazar-I 127601 9 7.05 0.11 27 21.16 0.59
11 Manbazar-II 85253 9 10.56 0.19 21 24.63 1.00
12 Puncha 108129 4 3.70 0.02 21 19.42 0.39
13 Purulia-I 125318 75 31.36 0.71 22 17.56 0.17
14 Purulia-II 142707 4 2.80 0.00 23 16.12 0.00
15 Kashipur 187038 30 16.04 0.33 39 20.85 0.56
16 Neturia 90649 6 6.62 0.09 20 22.06 0.70
17 Para 174620 8 4.58 0.04 29 16.61 0.06
Raghunathp
103786 23 18.29 0.38 20 19.27 0.37
18 ur-I
Raghunathp
99226 4 4.03 0.03 18 18.14 0.24
19 ur-II
20 Santuri 69587 30 43.11 1.00 15 21.56 0.64

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TABLE: A6 – CALCULATION OF INDICATORS X12 AND X13
Area
under
Net more
Area
Net Sown than
Total under
Sown Area as Indicator one Indicator
C.D. Blocks Area more than
Area % to value crop as value
(Ha) one crop
(Ha) Total % to
(Ha)
Area Net
Sl. Sown
No. Area
a A (a/A)100 X12 o (o/a)100 X13
1 Arsha 20697 37125 55.75 0.58 3700 17.88 0.44
2 Bagmundi 15443 42422 36.40 0.05 3649 23.63 0.71
3 Balarampur 18971 29944 63.35 0.78 1620 8.54 0.00
4 Barabazar 28163 41850 67.30 0.89 3978 14.12 0.26
5 Jaypur 13160 23050 57.09 0.61 2215 16.83 0.39
6 Jhalda-I 17253 31731 54.37 0.54 2362 13.69 0.24
7 Jhalda-II 15173 25656 59.14 0.67 2364 15.58 0.33
8 Bandowan 14193 35194 40.33 0.16 3001 21.14 0.59
9 Hura 21635 39672 54.53 0.54 3833 17.72 0.43
10 Manbazar-I 18249 37329 48.89 0.39 2530 13.86 0.25
11 Manbazar-II 17316 29132 59.44 0.68 2775 16.03 0.35
12 Puncha 19093 32878 58.07 0.64 2509 13.14 0.22
13 Purulia-I 20070 28088 71.45 1.00 3270 16.29 0.36
14 Purulia-II 18879 32143 58.73 0.66 3840 20.34 0.55
15 Kashipur 24614 44288 55.58 0.57 3548 14.41 0.28
16 Neturia 7022 20371 34.47 0.00 607 8.64 0.00
17 Para 16606 30774 53.96 0.53 2729 16.43 0.37
Raghunathpur-
9753 19765 49.34 0.40 2246 23.03 0.68
18 I
Raghunathpur-
11654 19768 58.95 0.66 3480 29.86 1.00
19 II
20 Santuri 11200 17970 62.33 0.75 1831 16.35 0.37

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TABLE: A7 – CALCULATION OF INDICATORS X14 AND X15

Area Irrigat
Aman
Aman covere ed
Rice Tota
Rice Indicat d Area Indicat
C.D. Populati Producti l
Producti or under as % or
Blocks on on per Area
Sl. on (in value irrigati to value
Head (in (Ha)
N MT) on Total
Kg)
o. ( Ha) Area
(a/A)1
p P (p/P) X14 a A X15
00
3712
Arsha 346.1 129148 267.99 0.48 5369 14.46 0.36
1 5
4242
Bagmundi 288.9 112448 256.92 0.45 1882 4.44 0.05
2 2
2994
Balarampur 321.2 118102 271.97 0.50 3469 11.58 0.27
3 4
4185
Barabazar 169.1 146927 115.09 0.00 5754 13.75 0.33
4 0
2305
Jaypur 232.4 111768 207.93 0.29 2614 11.34 0.26
5 0
3173
Jhalda-I 366.3 115748 316.46 0.64 3633 11.45 0.27
6 1
2565
Jhalda-II 341.9 123714 276.36 0.51 9218 35.93 1.00
7 6
3519
Bandowan 169.1 83694 202.05 0.28 4126 11.72 0.27
8 4
3967
Hura 414.6 127443 325.32 0.67 2747 6.92 0.13
9 2
3732
Manbazar-I 475.3 127601 372.49 0.81 978 2.62 0.00
10 9
Manbazar- 2913
367.6 85253 431.19 1.00 2278 7.82 0.16
11 II 2
3287
Puncha 449.7 108129 415.89 0.95 2090 6.36 0.11
12 8
2808
Purulia-I 261.9 125318 208.99 0.30 1993 7.10 0.13
13 8
3214
Purulia-II 228.3 142707 159.98 0.14 2138 6.65 0.12
14 3
4428
Kashipur 440.2 187038 235.35 0.38 2247 5.07 0.07
15 8
2037
Neturia 155.8 90649 171.87 0.18 1051 5.16 0.08
16 1
3077
Para 298.1 174620 170.71 0.18 5542 18.01 0.46
17 4

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Raghunath 1976
232.2 103786 223.73 0.34 1728 8.74 0.18
18 pur-I 5
Raghunath 1976
234.5 99226 236.33 0.38 1201 6.08 0.10
19 pur-II 8
1797
Santuri 199.7 69587 286.98 0.54 3124 17.38 0.44
20 0

TABLE: A8 – CALCULATION OF INDICATORS X16 AND X17

No. of No. of
No. of No. of No. of
No. ADAC Veterinar
livesto Indicat Veterin livesto Indicat
C.D. of per y per
ck or ary ck or
Sl. Blocks ADA 100000 100000
creatur value Personn creatur value
N C livestock livestock
es el es
o. creatures creatures
(n/P)100 (N/P)100
n P X16 N P X17
000 000
1 Arsha 8 84488 9.47 0.19 15 84488 17.75 0.33
2 Bagmundi 8 66329 12.06 0.32 14 66329 21.11 0.42
Balarampu
7 62405 11.22 0.27 3 62405 4.81 0.00
3 r
11128 11128
Barabazar 10 8.99 0.16 21 18.87 0.36
4 6 6
5 Jaypur 7 74509 9.39 0.18 12 74509 16.11 0.29
6 Jhalda-I 10 70260 14.23 0.42 8 70260 11.39 0.17
7 Jhalda-II 9 61354 14.67 0.45 15 61354 24.45 0.50
8 Bandowan 8 70784 11.30 0.28 15 70784 21.19 0.42
17580 17580
Hura 10 5.69 0.00 12 6.83 0.05
9 7 7
Manbazar-
10 89491 11.17 0.27 21 89491 23.47 0.48
10 I
Manbazar-
7 43762 16.00 0.51 9 43762 20.57 0.40
11 II
12 Puncha 10 82256 12.16 0.32 15 82256 18.24 0.34
13 Purulia-I 8 88365 9.05 0.17 12 88365 13.58 0.22
14 Purulia-II 9 62631 14.37 0.43 19 62631 30.34 0.65
21972 21972
Kashipur 13 5.92 0.01 17 7.74 0.07
15 1 1
16 Neturia 7 75993 9.21 0.17 12 75993 15.79 0.28
17 Para 10 38684 25.85 1.00 17 38684 43.95 1.00
Raghunath
7 52666 13.29 0.38 20 52666 37.98 0.85
18 pur-I
Raghunath
6 50146 11.97 0.31 14 50146 27.92 0.59
19 pur-II
20 Santuri 6 38797 15.47 0.48 9 38797 23.20 0.47
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TABLE: A9 – CALCULATION OF INDICATOR X18

No. of Running No. of SSI Unit


Indicator
C.D. Blocks SSI Unit within Population per 100,000 of
value
Sl. No. the block Population
n P (n/P)100000 X18
1 Arsha 36 129148 27.87 0.08
2 Bagmundi 27 112448 24.01 0.07
3 Balarampur 86 118102 72.82 0.25
4 Barabazar 41 146927 27.91 0.08
5 Jaypur 52 111768 46.52 0.15
6 Jhalda-I 204 115748 176.24 0.65
7 Jhalda-II 41 123714 33.14 0.10
8 Bandowan 10 83694 11.95 0.02
9 Hura 44 127443 34.53 0.11
10 Manbazar-I 73 127601 57.21 0.19
11 Manbazar-II 6 85253 7.04 0.00
12 Puncha 41 108129 37.92 0.12
13 Purulia-I 334 125318 266.52 1.00
14 Purulia-II 38 142707 26.63 0.08
15 Kashipur 143 187038 76.46 0.27
16 Neturia 21 90649 23.17 0.06
17 Para 106 174620 60.70 0.21
Raghunathpur-
41 103786 39.50 0.13
18 I
Raghunathpur-
10 99226 10.08 0.01
19 II
20 Santuri 25 69587 35.93 0.11

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TABLE: A10– CALCULATION OF INDICATORS X19 AND X20.

No. of
No. of
No. of No. of Co-
Co-
Commerc Banks per Indicat operative Indicat
Populati operati
C.D. Blocks ial and 100,000 or Societies or
on ve
Sl. Gramin populatio value per value
Societi
N Banks n 100,000
es
o. population
(n/P)1000 (N/P)1000
P n X19 N X20
00 00
1 Arsha 129148 6 4.65 0.54 25 19.36 0.36
2 Bagmundi 112448 4 3.56 0.35 24 21.34 0.47
3 Balarampur 118102 4 3.39 0.32 21 17.78 0.28
4 Barabazar 146927 8 5.44 0.69 18 12.25 0.00
5 Jaypur 111768 4 3.58 0.35 21 18.79 0.33
6 Jhalda-I 115748 4 3.46 0.33 30 25.92 0.70
7 Jhalda-II 123714 4 3.23 0.29 20 16.17 0.20
8 Bandowan 83694 4 4.78 0.57 19 22.70 0.53
9 Hura 127443 7 5.49 0.70 38 29.82 0.90
10 Manbazar-I 127601 4 3.13 0.27 21 16.46 0.22
Manbazar-
85253 4 4.69 0.55 19 22.29 0.51
11 II
12 Puncha 108129 5 4.62 0.54 25 23.12 0.56
13 Purulia-I 125318 2 1.60 0.00 29 23.14 0.56
14 Purulia-II 142707 6 4.20 0.47 28 19.62 0.38
15 Kashipur 187038 7 3.74 0.38 37 19.78 0.39
16 Neturia 90649 5 5.52 0.70 16 17.65 0.28
17 Para 174620 6 3.44 0.33 26 14.89 0.14
Raghunathp
103786 5 4.82 0.58 33 31.80 1.00
18 ur-I
Raghunathp
99226 4 4.03 0.43 22 22.17 0.51
19 ur-II
20 Santuri 69587 5 7.19 1.00 12 17.24 0.26

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TABLE: A11 – CALCULATION OF INDICATORS X21 AND X22.
No. of
No. of Total Percenta No. Postv
Mouzas Nos. ge of Indicat of Office Indicat
C.D. Populati
electrifi of electrifi or Post per or
Blocks on
Sl. ed - mouz ed value Offic 100000 value
N 2004 as mouza es populatio
o. n
(n/N)10 (p/P)100
n N X21 p P X22
0 000
1 Arsha 70 96 72.92 0.74 18 129148 13.94 0.13
2 Bagmundi 81 142 57.04 0.53 28 112448 24.90 0.67
3 Balarampur 60 90 66.67 0.66 16 118102 13.55 0.11
4 Barabazar 116 215 53.95 0.49 23 146927 15.65 0.22
5 Jaypur 48 113 42.48 0.34 22 111768 19.68 0.41
6 Jhalda-I 106 143 74.13 0.75 13 115748 11.23 0.00
7 Jhalda-II 85 131 64.89 0.63 19 123714 15.36 0.20
8 Bandowan 22 135 16.30 0.00 14 83694 16.73 0.27
9 Hura 108 116 93.10 1.00 29 127443 22.76 0.56
10 Manbazar-I 114 244 46.72 0.40 23 127601 18.02 0.33
Manbazar-
52 136 38.24 0.29 27 85253 31.67 1.00
11 II
12 Puncha 81 109 74.31 0.76 29 108129 26.82 0.76
13 Purulia-I 91 115 79.13 0.82 25 125318 19.95 0.43
14 Purulia-II 99 116 85.34 0.90 35 142707 24.53 0.65
15 Kashipur 195 211 92.42 0.99 31 187038 16.57 0.26
16 Neturia 93 124 75.00 0.76 14 90649 15.44 0.21
17 Para 106 135 78.52 0.81 28 174620 16.03 0.24
Raghunath
79 102 77.45 0.80 15 103786 14.45 0.16
18 pur-I
Raghunath
78 106 73.58 0.75 12 99226 12.09 0.04
19 pur-II
20 Santuri 82 104 78.85 0.81 14 69587 20.12 0.43

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TABLE: A12 – CALCULATION OF INDICATORS X23, X24 AND X25

(Sq. Km)
Indicato

Indicato

Indicato
Surfaced
Surfaced
1000000

(Km/Sq.
Populati

Cinema
Cinema

Density
Library

100000
r value

r value

r value
Houses
Sl. No.

l i

Public
No. of

No. of

Road

Road
Area

K )
Blocks

per

per
on

of
C.D.

Lib
H
(n/P)10 X2 (N/P X2 X2
P n 5 N l A (l/A)
3 ) 105 4 5
12914 0.0 0.0 10 12914 0.3
Arsha 0 0.00 5 3.87 82.08
1 8 0 2 6 8 0
11244 0.0 0.2 10 11244 0.4
Bagmundi 0 0.00 6 5.34 90.71
2 8 0 7 2 8 0
Balarampu 11810 0.3 0.0 12 11810 106.6 0.5
1 8.47 5 4.23
3 r 2 5 8 6 2 9 6
14692 0.0 0.1 14692 0.1
Barabazar 0 0.00 7 4.76 99 67.38
4 7 0 8 7 5
11176 0.0 0.1 10 11176 0.3
Jaypur 0 0.00 5 4.47 90.37
5 8 0 3 1 8 9
11574 0.3 0.4 10 11574 0.3
Jhalda-I 1 8.64 7 6.05 89.85
6 8 6 0 4 8 9
12371 0.0 0.0 12371 0.1
Jhalda-II 0 0.00 5 4.04 88 71.13
7 4 0 5 4 9
0.0 0.5 11 142.1 0.9
Bandowan 83694 0 0.00 6 7.17 83694
8 0 9 9 8 4
12744 0.3 0.3 15 12744 118.4 0.6
Hura 1 7.85 7 5.49
9 3 3 0 1 3 8 9
Manbazar- 12760 0.0 0.5 14 12760 115.9 0.6
0 0.00 9 7.05
10 I 1 0 7 8 1 9 6
Manbazar- 0.0 0.1 11 136.0 0.8
85253 0 0.00 4 4.69 85253
11 II 0 6 6 7 7
10812 0.0 0.6 14 10812 131.3 0.8
Puncha 0 0.00 8 7.40
12 9 0 3 2 9 2 2
12531 1.0 1.0 14 12531 117.3 0.6
Purulia-I 3 23.94 12 9.58
13 8 0 0 7 8 0 8
14270 0.0 0.2 11 14270 0.3
Purulia-II 0 0.00 7 4.91 81.29
14 7 0 0 6 7 0
18703 0.2 0.0 10 18703 0.0
Kashipur 1 5.35 7 3.74 54.00
15 8 2 0 1 8 1
0.4 0.3 12 142.3 0.9
Neturia 90649 1 11.03 5 5.52 90649
16 6 0 9 1 4
17462 0.2 0.0 17462 0.0
Para 1 5.73 7 4.01 93 53.26
17 0 4 5 0 0
10378 0.8 0.3 11 10378 105.9 0.5
RN Pur-I 2 19.27 6 5.78
18 6 0 5 0 6 9 6
19 RNPur-II 99226 0 0.00 0.0 5 5.04 0.2 11 99226 112.8 0.6
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0 2 2 7 3
0.0 0.3 10 148.0 1.0
Santuri 69587 0 0.00 4 5.75 69587
20 0 4 3 2 0
Data Source (Except Table A9): Census of India, 2001, Govt. of India and Purulia District
Statistical Handbook, Bureau of Applied Economics and Statistics, Govt. of West Bengal, 2004
Table A9: Poschim Bango,Purulia Zila, June-2007, Ministry of Information and Cultural Affairs
Govt. of W.B.
 

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
MULTIMEDIA LANGUAGE LAB:
THE NEED OF THE HOUR

MS. HARSHDEEP*

*Lecturer,
M.M University, Mullana, Ambala.

ABSTRACT

This paper attempts to describe the gap between manipulative classroom drills and
the demands of the lecture halls. Language lab is designed to help the student to
develop certain basic skills in mastering the language. The paper also briefly
explains the importance of the role of the lab instructor in the total lab program, and
the possibility of better correlation between classroom activity and lab activity. The
language laboratory is suggested as a possible testing ground for a synthesized
approach to language teaching.

The psychological concept of learning goes far beyond learning directly from
teacher or learning through study. It does not refer only to learning of skills or
acquisition of knowledge but also refers to learning to learn and learning to think.
On the basis of this concept we can make a ground where technology can help us to
make our students how to learn learning and how to learn thinking. Especially when
we talk about language skills, we must use technology deliberately for the betterment
of learners in their learning process. Due to the impact and influence of information
technology on society and education computer assisted language learning is
becoming the trend in foreign language teaching. Language teaching activities are
intended to bring all about language learning.

KEYWORDS: Training, research, communication, process, knowledge, multimedia,


language, laboratory (lab), efficiency, vocabulary, dynamic, flexible, elementary.
______________________________________________________________________________

INTRODUCTION

The computer has become one of the most central components of our modern culture. One of the
most pervasive aspects of computing is multimedia. The term multimedia a system which allows

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the presentation of additional computer interface output beyond the traditional text only output.
Since the facilities of multimedia become available its main use has been teaching or presenting
information

Good communication skills are essential for the success of any profession. If a person wants to
reach out to people, he or she has to speak their language. The English language, in particular,
has become indispensable in the lives of young people who wish to advance their careers
anywhere in the world. English language learning has therefore become a must for any Indian
student today

Now technologies make it practical to approach learning in ways that have been recommended
by scientists, theorists, and educational psychologists for years. Today we have many advanced
information technologies such as virtual reality, visualization, digital modeling, digitization,
simulation, games, virtual worlds and intelligent one – on – one tutoring systems. These
technologies dramatically improve teaching and learning of elusive concepts by translating
abstractions into real - world contexts and providing customized instruction and individualized
assessments. In order to make efficient use of this technology and to spread it’s in all institutions
of learning and training; we must undertake a long-term, large - scale effort to research, develop,
test and disseminate tools for building advanced learning systems. Therefore language laboratory
plays a significant role in the language learning process. Language learning is not the like
learning any other subject. It is limited to writing an examination and getting a degree or award.
It requires the practice of effective the four skills of reading, writing, listening and speaking.
Communication is the most important factor when seeking a placement in a company or
institution. Communication means one’s ability to listen carefully so as to understand the
meaning and to respond in turn with appropriate words and correct pronunciation.

OBJECTIVES

1. To discuss the various characteristics of language laboratory. As it is a technological aid


for learning, it has a number of advanced facilities that can help a student to learn a
language for effective communication.

2. To highlight the importance of the language laboratory and its challenges imposed on the
learner and the teacher.

3. To discuss various strategies of teaching/learning.

4. To use the lab as a productive tool, not an entertainment center.

5. To provide an opportunity for language teachers to try out new ideas for language
teaching in the labs.

REVIEW OF LITERATURE

Many scholars have helped in developing the theory and practice the Communicative Language
Teaching Approach (Brown, 1987; Brumfit & Johnson, 1979; Hymes, 1972; Nattinger, 1984;

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Nunan, 1987 & 1989; Richards & Rodgers, 1986; Rossner, 1988; Savingnon, 1983; White, 1989;
Yalden, 1983). The underlying purpose of the CLT approach is the communicative competence
(Hymes, 1972). Students do not simply learn the linguistic structures and grammar rules. They
have to learn how to use the language efficiently. Littlewood (1981) described the CLT approach
that one of the most characteristic features of communicative language teaching. `It pays
systematic attention to functional as well as structural aspects of language. In contrast to the
grammar-translation and audio-lingual methods, the CLT approach stresses the communicative
activities that involve the real use of language in daily life situation.

To combine the CLT approach with a framework of computer-aided language learning, computer
simulation seems to be the best strategy for both. Huang (1997) classified computer
simulations into two types: instruction-oriented and fun-oriented.

Their classification depends on their primary purpose, the nature of computer-human


interaction, and the amount of control (see table below).

Primary purpose Computer-human interaction User control

Instruction-oriented Teaching & learning Unbalanced Limited

Fun-oriented Motivational & entertaining Balanced Multiple

The primary aim is remarkably significant since it will determine the nature of the computer
simulations. The instruction-oriented computer simulation aims at teaching or helping people
learn. As a result, the primary purpose of this type of computer simulation will be giving
instructions and placing the responsibility of learning on the users for most of the time and
constantly monitoring them to see whether they have successfully realized the goal. Moreover,
the nature of computer-human interaction is not balanced. Users receive instructions passively,
then respond, and wait further instructions. The computer becomes dominant in the interaction.
Thereafter, the user's choice during the interaction is rather limited. Users do not have much
choice since all available choices are predetermined. The outcome of the user's move becomes
predictable. The user's limited control over the computer is partly due to the fact that users in an
instruction-oriented simulation are expected to accomplish a pre-set goal in learning. The
simulation guides users in a certain direction. Therefore, the user's choices are restricted by
simulation's primary purpose.

A MULTI-MEDIA HISTORY OF ENGLISH LANGUAGE TEACHING

Multimedia English teaching experience a long journey, from the1946 birth of the world’s
first computer, the multi-media English language teaching experience of the ‘original multi-
media’ , ‘primary multi-media’, and ‘Advanced multi-media’ three stages

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(A) ‘THE ORIGINAL MULTI-MEDIA’ STAGE

‘The original multi-media’ is the initial stage of multi-media English language teaching.
Mainly consists of (i) projectors and slides: Slide projectors features of teachings to provide
large, clear screen text, images, saving a lot of writing on the blackboard in class time. (ii)
The period of tape recorders and tapes: Recorder and tapes are characterized by making the
teaching of English to provide clear content, can be repeatedly played, and heard. (iii) The
period of the projector. Projector is the use of light and lens device, the film’s text and
images projected on the white screen projection technology.

English teaching, the focus of the teaching with the pictures into slide projector in the form
of teaching material supported by the teachers talked about the composition of ‘original
multi-media’ learning of English.

(B) ‘THE PRIMARY MULTI-MEDIA STAGE’

Primary multimedia stage of English language teaching is based on the use of video recorders
and language laboratories marked. (i) The period of video recorders and video tapes. Video
recorders focus on film, slides, sound recordings and other audio-Visual media, the
advantage of the process of reproduction of verbal communication, and create verbal
communication environment in which teaching becomes more effective. Students are able to
mimic the use of language, communication processes, and enhance their understanding and
mastering of the language. (ii) The language laboratory period Language laboratory by
dozens of tape recorders, headphones, microphone etc., through a master device to carry out
operational use. Function play, listening, recording, monitoring, intercom, chipped, group
training. Teachers can use these functions to create a good environment for teaching and
practice of English.

(C) ‘ADVANCED MULTI-MEDIA’

‘Advanced Multimedia’ stage is the advanced stages of multi-media English language


teaching is based on the use of computers and multimedia systems marked.

(i) computer-assisted language teaching is mainly used for teaching management in last
decades of 20th century .Later, the rapid development of computer technology, and rapid fall
in prices of computers helped the computer-aided, computer-assisted English teaching.
Accordingly new computer assisted courseware has sprung up. (ii) The use of computer
multimedia system, period. Computer-aided English teaching is the highest level of the
development of computer multimedia English teaching system. Common type of computer
multimedia teaching system is based on a computer as the core, coupled with video
projectors, DVD players, VCRs, white screen, tape recorders and multi-language laboratory
and other equipment, a complete English language teaching system. But not ‘one person, one
machine’. The luxury of computer multimedia teaching system can make use of the
advantage of one person, one machine, truly ‘individualized education’. Computer
multimedia English language teaching system is the application of artificial intelligence

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techniques and simulates the results of acts of outstanding teachers, targeted to educate and
train students.

Scientific Research shows that only 83% in the visual, auditory 11%, touch 3%, 2% of taste
smell, less than 1% of the proportion of overall stimulation in order to achieve optimal
results. The students listen to see combined memory after 2 hours of the curriculum can reach
85%, after 72 hours can still maintain a memory of 65% significantly more than the
traditional text of the rigidity of a single teaching mode. Multimedia teaching helps students
via text, voice, images, different means of access to language information more conducive to
grasp and memory.

THE NEED FOR A LANGUAGE LABORATORY

The curriculum of the present educational system in India does not have a laboratory session for
arts subjects. Only those who study science subjects have practical work, which is undertaken in
a laboratory. Hence, a laboratory for language learning is something new to Indian students,
whereas it is very common in Western countries to train children in the laboratory to enrich their
language learning experiences.

The electronic devices used in the laboratory will stimulate the eyes and ears of the
learner to acquire the language quickly and easily.

THE SIGNIFICANCE AND RELEVANCE OF THE LANGUAGE LABORATORY

The significance of the language laboratory has been much felt in the domain of communication.
We live in a multilingual and multicultural world, which is being shrunk to the size of a village
by the advancement of science and technology. The language laboratory exists to help one to
use technology effectively to communicate. It is not merely for learning a single language, but
can be used for teaching a number of languages efficiently. To acquire a sensibility for the
sounds and rhythm of a language, one has to hear the best samples of a spoken language
(Richards, 2001).

This is precisely the function of the language laboratory. Some highlights of the language
laboratory are given below:

1. It is a tool designed for teaching any language.

2. It helps one to learn pronunciation, accent, stress and all other aspects of the language.

3. Phonetics of a language helps acquire the language quickly and easily.

4. Web-content creation, the setting up of in-house news magazines, corporate publicity and
identity, and teaching materials can be generated through the language laboratory.

5. To maintain good linguistic competence- through accuracy in grammar, Pronunciation &


Vocabulary.

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6. To develop pragmatic competence, to understand the grammatical form & function &
scale of formality.

7. To enrich the discourse competence, to prepare the learner to be able to produce


contextualized written text and speech.

8. To acquire strategic competence to use both spoken & written language to use in a
wide range of communication strategies.

PURPOSES OF TEACHER’S CONSOLE

• Stay in control- Monitoring the students from the teacher’s PC when they are on self
learning.

• Reinforce learning- Facilitating broadcast and sharing files from Teacher’s PC to the
other student workstations through audio, video, text and image.

• Teaching with software that is approachable- Pairing and grouping the students to
facilitate group discussions. Content authoring to create course material, and tests.

• To ensure the best learning results

1) STAY IN CONTROL

New ways of learning and interacting in the classroom demand new ways of managing student
activity. Many software language learning solutions keep teachers and learners firmly at the
center of learning activity with a suite of classroom management tools: control web browsing;
manage chat sessions; monitor students’ on-screen work and activities; black out screens; lock
cursors and keyboards to focus attention on a given task; shut down, log off or restart student
computers etc.

2) REINFORCE LEARNING

Teachers can use communication tools that are familiar to their students, such as text messaging
or chat, to communicate with them in an engaging way and by creating more opportunities to
interact in the target language. Learners can reinforce their language in various activities. They
can revise pronunciation, grammar, vocabulary, sentence structure and conversations

3) TEACHING WITH SOFTWARE THAT IS APPROACHABLE

Teachers will be perfectly at ease by using teaching software, as the interfaces are user-friendly
and activity-driven, so that activities that are not in use cannot be accidentally selected to confuse
the teacher and disrupt the lesson. No specialized IT skills are needed in the comfortable
teaching and learning environment provided by the interface.

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4) TO ENSURE THE BEST LEARNING RESULTS

Language Learning Software gives learners access to resources for independent or supplemental
learning and study. This unique learning-on-demand feature creates additional learning
opportunities and reinforces classroom activity. It is possible to conduct & practice tests and get
results in individualized manner

ROLE OF LANGUAGE LAB IN TEACHING- LEARNING

Language Teaching is not only influenced by technology but also by concepts and practices from
the corporate world. As teacher is to be considered and called as language facilitator. The prime
duty of a teacher should be facilitate learners with knowledge in this work; technology can help
us a lot. The aspect of ‘conversation’ would be based on real-life situations. Other variants
included art of public speaking, group discussions, interactive skills, resume building and tips to
the students to develop techniques and strategies that would build confidence in them. Students
with a fair amount of knowledge of English would be picked for the lab and classes held outside
class hours. So the first step required as a prerequisite is to train the teachers in the area of
technology. How a computer can be used in language class-a teacher must be acquainted with
this. As a lecturer in English language lab I would like to describe language laboratory system. It
is equipped with 31 booths and more. The booths are connected with a network of audio - wiring
at the centre of which is the monitoring console. This has switchboard and tape-decks, making it
possible to play tapes and send a Programme provided to all booths .The lecturer at the console
can listen in or have a two- way conversation with any student. In order to achieve this objective,
there are three possible learning modes:

The Guided Mode offers a step-by-step study course. Organized into Learning Paths, this mode
focuses on the acquisition of functional language patterns across a broad spectrum of themes. In
this mode a learner at lower intermediate level can learn pronunciation, grammar, functions of
words and vocabulary by applying and practicing the rules.

The Free-to-Roam Mode gives a student the option of learning by topic or by linguistic skill.
This mode is particularly useful for students who are at intermediate level of learning and also
for teachers who want to familiarize themselves with the content available to them.

The Dynamic Mode takes a student under its wing. By analyzing a student’s results, this mode
adapts the course of study to ensure that it corresponds to the student’s needs and abilities. The
activities offered evolve in relation to the student’s results and original objectives.

LIMITATIONS AND IMPLICATIONS

This study does not present enough evidence to show that the communicative language teaching
method is more effective than it is in the traditional classroom. However, this study would like to
suggest some directions for teachers' reference.

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First, teachers should prepare themselves for the use of modern computer technology. Foreign
language training will not always take place in a traditional classroom. With the help of a setting
such as a multimedia lab, foreign language training will be more efficient. Teachers should have
the clear idea of how a traditional classroom is different from a multimedia lab. To serve that
purpose well, this study summarizes the previous

Traditional Classroom Multimedia Lab

Layout Matrix Matrix

Local computer network, video on


Teaching tools Chalk, blackboard, audio tapes
demand.

Teaching materials Textbook Interactive computer software

Communicative Realistic computer-simulated


Imaginative role-play
activities environment

Direct communication and more Indirect communication and less


Student-teacher
"intimacy" intimacy"

Student-computer Not available Interactive

Discussion as below:

Moreover, regarding the procedures of carrying out the project, orientation is the key factor in
determining success with the project. Teachers must clearly state the goals and linguistic skills
students are expected to attain by playing the computer simulation. Students have to keep in
mind their purpose for playing the simulation. Otherwise, they would tend to indulge themselves
in simply playing.

Although this study shows that the CLT approach is not as successful as we had expected in a
setting of the multimedia lab, this study suggests that with the fast development of computer
technology, foreign language teaching in a setting other than the traditional classroom is still a
promising trend.

CONCLUSION

There is always scope for improvement and advancement in any field and for any subject. It has
to accomplish with commitment and enthusiasm. We are habituated to the traditional teaching
methods. It is high time that our teaching methods have to undergo a change.

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The language laboratory is a very helpful tool for practicing and assessing one’s speech in any
language. It provides a facility which allows the student to listen to model pronunciation, repeat
and record the same, listen to their performance and compare with the model, and do self-
assessment. Since the language laboratory gives every learner of any language freedom to learn
at their own pace, it is flexible and does not necessarily require a teacher all the time. At the
same time, it is possible for teachers to provide assistance individually and collectively. The
language laboratory allows every participant his or her privacy to speak and listen. According to
my view, there are a few of the whole .lot of techniques those can be used to improve language
skills through technology in the present generation .It can be implemented for a learner of any
stage. It will be more effective if technology is introduced from elementary level.

REFERENCES

• Joshi,Nikhil.Research Paper:Technology in Teaching Language skills

• http://eltweekly.com/more/2009/11/technology-in-teaching-language...

• Wilson,d.david.The Significance of the language laboratory in communication

• Use of Language lab in English language lab In English Language Learning/teaching

• Stankova, Elena.Practical English Phonetics in The Language Laboratory. Department of


English, University of Sofia.

• A New language Laboratory Programme for Advanced Students

• Raman, Meenakshi. & Sharma Sangeeta.Technical communication,Oxford University


Press

• Huang, Shih-Jen. Communicative Language Teaching in a Multimedia Language Lab


Foolyn institute of Technology (Taiwan)

• The Internet TESL Journal, Vol. VI, No. 2, February 2000


http://iteslj.org/

• Cécile Gabarre Turning a Multimedia Language Lab into a Powerful Learner-Centered


Tool. , Malaysia: University Putra Malaysia

• AsiaCall Online Journal (ISSN 1936-9859) Vol. 4 No.1 October 2009 Cécile Gabarre and
Serge Gabarre

• Shih-jen,Huang Communicative language Teaching in a Multimedia Language Lab,

• Alesssi, S. M. & Trollip S. R. (1985). Computer-based instruction: methods and


development. New Jersey: Prentice Hall.

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• Brown, H. D. (1987) Principles of Language Learning and Teaching. MA: Addison-
Wesley Publishing Company.

• Brumfit, C. and Johnson, K. (1979) (ed.) The Communicative Approach to Language


Teaching. New York: Oxford University Press.

• Gates, B. (1997) The Road Ahead.

• Huang, S. J. (1997). The Preliminary Study of the Indirect Use of Computer Simulation
in EFL Teaching. Paper presented at the First International Conference of CALL, Naval
Academy, Taiwan.

• Hymes, D. (1972) on Communicative Competence. In J. B. Pride and J. Holmes (eds.),


Sociolinguistics, p.269-93. Harmonds wortth: Penguin.

• Levy, Michael (1997). Computer-assisted Language Learning. Oxford: Clarendon


Paperbacks.

• Littlewood, W. (1981) Communicative Language Teaching. New York: Cambridge


University Press.

• Nattinger, J. R. (1984) Communicative Language Teaching: A New Metaphor. TESOL


Quarterly, 18 (3), 391-407.

• Nunan, D. (1989) Designing Tasks for the Communicative Classroom. New York:
Cambridge University Press.

• Nunan, D. (1987) Communicative Language Teaching: Making it work. ELT Journal,


41(2), 136-145.

• Richards, J. C. & Rodgers, T. S. (1986) Approaches and Methods in language Teaching:


A Descriptions and Analysis. New York: Cambridge University Press.

• Rossner, Richard. (1988). Materials for Communicative Language Teaching and


Learning. Annual Review of Applied Linguistics, 8, 140-163.

• Savingnon, S. J. (1983). Communicative Competence: Theory and Classroom Practice.


Reading, Mass.: Addison-Wesley Publishing Company.

• White, C. J. (1989). Negotiating Communicative Language Learning in a Traditional


Setting. ELT Journal, 43(3), 213-220.

• Yalden, J. (1983). The Communicative Syllabus: Evolution, Design and Implementation.


Oxford: Pergamon Press.
 

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
CURSES OF PLASTIC ON ENVIRONMENT
DR. PHILIP MODY*; SRI. RIKO MIHU**

*Assistant Professor, Department of Commerce,


Rajiv Gandhi University, Rono-Hills, Papum Pare,
Arunachal Pradesh, India.
**Department of Commerce,
Rajiv Gandhi University, Rono-Hills, Papum Pare,
Arunachal Pradesh, India.

ABSTRACT

Plastics are in receipt of several cat- calls on different grounds in recent times.
Plastic make dreaded impacts on all spheres of the environment- the atmosphere,
lithosphere and hydrosphere. Its negative impacts on man, animal, aquatic life is
incredible. It is of great concern that man should stop producing plastic anymore.
However, he has to walk to every corner to make plastics recycled through
breakthrough researches if plastics have to be the most useful products of a man in
an attempt to make the Earth ever evergreen. Further, most of the plastic do not rot
or are biodegradable on which still a man need to work his fingers to the bone to
look up for possible elucidations.

This paper endeavor to discuss curses of plastic upon the environment. Moreover, an
attempt is also made in this paper to identify possible panaceas to problems posed by
plastics upon environment.

KEYWORDS: Environment; Parkesine; Plastic and; Sustainability.


______________________________________________________________________________

INTRODUCTION

Etymologically, word plastic is derived from the Greek ‘Plastikos’ which mean capable of being
shaped or molded. It refers to its malleability or plasticity during manufacture, which allows
them to be cast, pressed, or extruded into a variety of shapes—such as films, fibers, plates, tubes,
bottles, boxes, and much more. A plastic is a type of synthetic or man-made polymer. It is a
complex organic compounds produced through the process of polymerization. Plastics are
typically polymers of high molecular mass and may contain other substances to improve its
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performance or reduce production costs. Monomers of plastic are either natural or synthetic
organic compounds. The raw materials needed to make most plastics come from petroleum and
natural gas. The first human-made plastic was invented by Alexander Parkes in 1855; he called
this plastic Parkesine (later called celluloid). It was unveiled at the 1862 Great International
Exhibition in London. Later in 1866, Parkes formed the Parkesine Company for mass production
of Parkesine. The company, however, failed due to poor product quality as Parkes tried to reduce
its production costs and consequently, its trading ceased in 1868. However, Parkesine's
successors were Xylonite, produced by Daniel Spill a close associate of Parkes and Celluloid
from John Wesley Hyatt. The real star of the plastics industry in the 1930s was Polyamide (PA),
far better known by its trade name Nylon. Nylon was the first purely synthetic fiber, introduced
by DuPont Corporation at the 1939 World's Fair in New York City. Whether we are aware of it
or not, plastics play an important part in our life. Plastics' versatility allows it to be used in
everything from car parts to doll parts, from soft drink bottles to the refrigerators where it is
stored in. It has been the most used material in our daily lives. There are a myriad of ways that
plastic is and will be used in the years to come. The fact that plastic is lightweight, does not rust
or rot, helps lower transportation costs and conserves natural resources is the reason for which
plastic has gained this much popularity around the globe. Plastics are found everywhere and have
innumerable uses. To our surprise, now researchers are trying to make a television made of
plastic that can be roll up in our living room. Due to its relatively low cost, ease of manufacture,
versatility and imperviousness to water, plastics are used in an enormous and expanding range of
products, from paper clips to spaceships. Fascinatingly, plastics have already replaced many
traditional materials, such as wood, stone, horn & bone, leather, paper, metal, glass, and ceramic
in most of their earlier uses.

Plastics have various distinctive characteristics. Plastics can be very resistant to


chemicals. Consider all the cleaning fluids in your home that are packaged in plastic. Plastics can
be both thermal and electrical insulators. Thermal resistance is evident in the kitchen with plastic
pot and pan handles, coffee pot handles, the foam core of refrigerators and freezers, insulated
cups, coolers and microwave cookware. Generally, plastics are very light in weight with lower
transportation costs. Plastics can be processed, molded or given any shape and size from thin
fibers to very intricate parts. It is impervious to water. Moreover, it does not rust or rot. Even
some plastics can be recycled. Generally, there are two types of plastics: thermoplastics and
thermosetting polymers. Thermoplastics are the plastics that don't undergo chemical change in
their composition when heated and can be molded again and again; examples are polyethylene,
polystyrene and polyvinyl chloride etc. Whereas, Thermosets can be melted and take shape once;
after they have solidified, they stay solid forever. However, plastics can also be classified by
various physical properties, such as density, tensile strength, glass transition temperature and
resistance to various chemical products etc. Some well known plastics are Polypropylene (PP),
Polystyrene (PS), High impact polystyrene (HIPS), Acrylonitrile butadiene styrene (ABS),
Polyethylene Terephthalate (PET), Polyester (PES), Polyamides or Nylons (PA), Polycarbonate
(PC) and Polyethylene (PE) etc.

PLASTIC AND ENVIRONMENT

It is quite obvious that plastic has changed our life incredibly. However, plastics are in
receipt of several cat- calls on different grounds in recent times. It seems like plastics have hell-

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bent on damaging the pristine environment. To crack one’s bone, somewhere between 500
billion and a trillion plastic bags are consumed worldwide each year but less than one percent of
bags are only recycled as per data released by the United States Environmental Protection
Agency. It sparks a question, “where a more than 99 percent unrecyled plastic does goes then?”
It obviously goes to the environment to shower dodgy curses. Further, since the 1950s, one
billion tons of plastic have been discarded worldwide and may persist throughout the future
generations to come in. It is irking to know that plastics are durable and degrade very slowly as
the molecular bonds that make plastic so durable that it is equally resistant to natural processes of
degradation. Since, most of the plastics do not rot or are not biodegradable, a man- the maker
himself need to work his fingers to the bone to look up for possible elucidations.

In some cases, burning plastic can release toxic fumes. Burning the plastic polyvinyl
chloride (PVC) may create dioxin. Also, the manufacturing of plastics often creates large
quantities of chemical pollutants. The biggest threat of the conventional plastics industry is most
likely to the environment, including the release of toxic pollutants, greenhouse gas and litter.
Most plastics do not pose any health or environmental hazards, but some monomers that are used
in manufacturing plastics, have been proved to have caused cancer. Also, benzene, a raw
material used in the production of nylon, is a carcinogen which poses threats to human health.
Moreover, recent accumulation of enormous quantities of plastic trash in ocean gyres is of major
concern on which strong legislations is urgently felt for around the world. U.S. National
Academy of Sciences had conducted a research study in 1975 which unveil that oceangoing
vessels together dumped eight million pounds of plastic annually. Moreover, the study also
found that the world's landfills are not over flowed with plastic because most of it ended up in
ocean-fills. Shockingly, plastic bags have been found floating north of the Arctic Circle near
Spitzbergen and as far south as the Falkland Islands as per data release made by British Antarctic
Survey. Nearly 200 different species of marine life including whales, dolphins, seals and turtles
die due to plastic bags. They die after ingesting plastic bags which they mistake for food1. In
addition, plastics also pollutes inland water bodies like lakes, rivers, rivulets, canals, wells, tanks
and ponds etc leaving cataclysmic effects on animals, aquatic lives and human being too. Mostly,
plastics find their way into the water bodies via drains and sewage pipes. Further, it is revealed
that plastic bags account for over 10 percent of the debris washed up on the U.S. coastline.2

Plastics bags get blown all around to different parts of our lands including agricultural
lands which contaminate soil. Effects of plastics over the land is absolutely catastrophic- a silent
killers of wild as well as domestic animals like, cows, goats, deers and bears etc. Microscopic
particles embodied in plastics enter into the food chain of both man and animals. It causes
myriad of diseases to animals and human being that result into acute sufferings and deaths. Even
birds do not get excused from the curses of plastics. World Wildlife Fund Report, 2005 has
shown that birds are terminally entangled due to plastics. Unfortunately, very soon questions on
disposal of unwanted plastics would dominate human mind as unwanted plastic is not only a pile
of rubbish but also smells trouble. Some countries have too much of plastic rubbish for them to
dispose off and due to the high cost of the disposal of the plastic rubbish, many resort to
                                                            
1
 World Wildlife Fund Report 2005.
2
National Marine Debris Monitoring Program, U.S.A.
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indiscriminate dumping of plastics. In many cases, some developed countries actually pay the
developing countries to dump the rubbish in their country so that the developed countries'
‘backyard’ would be clean of the unwanted plastic products. Besides dumping of plastics, some
countries actually burn to ashes the plastic waste and all the poisonous gases produced actually
spreads across nations; result into serious effects such as air pollution, acid rain and dent up
health of birds, animals and human being.

SUGGESTIONS

It is very true that any noble ideas, thoughts and action spark off the mind. A brilliant
policy fails; a right programs collapse and; a profitable projects debacle in absence of a noble
thought- a sacrifice, commitment and strong will to do something very good for oneself or to
others. A man makes myriads of inventions. It is he who decides whether to make a good or bad
uses of his pretty inventions. It is wise to abandon using some of his inventions if it poses threats
to the environment and himself. However, he can make use of his inventions in a way it is
assures sustainable development. Plastic is the burning topic robbing off our attention- a matter
of great concern! Complete ban over plastic is almost the impossible. Nevertheless, if at all it is
put to continued uses then we need to take strong resolutions.

It is strongly felt that we need to switchover to natural bags made of cloth, bamboo,
wood, cane, jute or paper instead of plastics bags. Consumer need to choose only those
containers or bags which are biodegradable in nature. Changing once attitude to minimize
plastics bags and its product to maximum extent possible would work miraculously. For
example, upon working it is found that if we use a bag made of cloth, we can save at least 6
plastic bags a week. In the same pattern save 24 bags a month and 288 bags a year. Altogether,
22,176 plastics bags could be saved in an average life time of a man. If just one out of five
people in our country did this, just imagine how many plastic bags could have been saved then.
If at all plastics are used, it has not to be indiscriminate dumped or burnt down. It is better if
plastic wastes are collected and finally disposed off either by formal or informal organization. It
is better because, in the way to disposing plastic wastes, authorized agencies or organizations
may sort out and retain the one which could be recycled. Moreover, it ensure dumping or final
disposal of plastic wastes in a single landfill minimizing its potential dangers. Consumer
education on evils of plastic, its waste management and final disposal is of paramount
significance. Dangers posed by plastics on animal, aquatic life, human being and environment
are to be well addressed to users which may avert some possible mistakes of consumers upon
plastics. Moreover, users are to be informs of right way of managing about plastic wastes and its
final disposal. While manufacturing plastics, starch powder must be mixed with plastic as a filler
to allow it to degrade more easily. It may trim down problems arising out of plastics. In addition,
intensive research has to be carried out globally with joint collaboration among nations to
discover matters that could be used along with plastic to make it absolutely biodegradable. There
need to have strong legal frame works to take control over manufacturing and disposal of plastic.
In Indian case, Ministry of Environment and Forest must take a lead role giving constant
guidelines and directives to both manufacturers and users. It is urgently felt that units
manufacturing or recycling plastics should get registered with the concerned State Pollution
Control Board or Pollution Control Committee in case of Union Territory. It would help in

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scientific reduction, re-use, recovery, recycling, composting or disposal of plastic waste.
Moreover, it can also check illegal manufacturing or disposal of plastics bits and pieces.

Apart from Government Agencies, other organizations like Municipal authority, NGOs,
Voluntary Waste Pickers should be encouraged to part take into the rally to keep plastic free
environment. They may be given a special package which may include financial assistance,
training and technical supports. Each plastics product should have informations printed in
English or in local languages like- name of organization, name of plastic, registration No. of the
manufacturer and thickness of plastic etc. If possible, the colour of plastics should be white so as
to quickly identify if thrown away indiscriminately. No plastic carry bags should be made
available free of cost by retailers to consumers. It should be priced in a way it cover even its
recycling or disposal cost. Preferably plastic bags should be highly priced. It has dual benefits
firstly, it discourage consumer to use it and make switch over to other natural bags. Secondly, it
helps in reducing country’s dependency on imported oils. Levy high taxes on plastics products
would discourage further production of plastics. It makes production of plastics bit of a costly
affairs. Moreover, this fiscal measure would also compel existing plastics producers to shut
down their business houses. It may force plastics industrialists to undertake else other business
houses of similar nature.

CONCLUSION

Threats being posed by plastics upon the environment remain as toughest puzzle to be
resolved by us if, it is put to continued uses in future. In this direction, many researchers have
been undertaken in an attempt to make plastics biodegradable. Some of the plastics degrade with
exposure to sunlight (e.g., ultra-violet radiation), water or dampness, bacteria, enzymes and wind
abrasion. Moreover, rodent, pest or insect also help in degradation of plastics. However, some of
the plastic do not rot or are biodegradable. It poses dangers to present as well as the future
generations. Further, all plastics whether is it biodegradable or not are equally dangerous for the
aquatic life, wild life, mankind and the environment. Keeping in views the potential threats
posed by plastics, many countries have taken noble resolutions to ban plastic bags. For instance,
Bangladesh has banned plastic bags on 8th March’ 2007 followed by China on 9th January’ 2008
in Asia. Ireland took the lead in Europe, taxing plastic bags in 2002 and has now reduced plastic
bag consumption by 90 percent3. In 2005, Rwanda banned plastic bags. Israel, Canada, western
India, Botswana, Kenya, Tanzania, South Africa, Taiwan and Singapore have also banned or are
moving toward banning the plastic bag4. Further, San Francisco, Oakland and Boston too have
taken resolutions to make their cities a plastic free in 2007.

Thus, plastic make dreaded impacts on all spheres of the environment- the atmosphere,
lithosphere and hydrosphere. Its negative impacts on man, animal, aquatic life is incredible. It is
of great concern that man should stop producing plastic anymore. However, he has to walk to
every corner to make plastics recycled through breakthrough researches if plastics have to be the
most useful products of a man in an attempt to make the Earth ever evergreen. Say no to plastic

                                                            
3 th
 BBC News, 20 August’ 2002.
4
PlanetSave.com 16th February’ 2008.
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bags at individual level and do something drastic…..cut plastics at industrial level would go a
long way in mitigation of this menace.

REFERENCE

1. E.C, Worden., (2010 reprint); Nitrocellulose Industry, Van Nostrand, p. 568, New York,
ISBN 1153059282.

2. Kinnane, Adrian., (2002); DuPont: From the banks of the Brandywine to miracles of science,
Md. Johns Hopkins University Press. pp. 116–125, Baltimore, ISBN 0-8018-7059-3.

3. Mody, Philip., (2011); Plastic, www.Amazines.com,


http//www.amazines.com/article_detail.cfm?articleid=2548731.

4. Stephen, Fenichell., (1996); Plastic: The Making of a Synthetic Century, Harper Business, p.
17, ISBN 0887307329.

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
BT TECHNOLOGY: LABOUR USE
PATTREN IN COTTON (A CASE STUDY OF ANDHRA PRADESH)

DR. A. BALA KRISHNA*

*Project fellow, Department of Economics and Applied Economics,


Acharya Nagarjuna University,Guntur.

ABSTRACT

Bt (Bacilluss thuringensis) cotton is associated with a substantial overall generation


of rural employment. This has interesting gender implications. Cotton is a labour
intensive crop. Unlike in other countries cotton farming is not highly mechanized.
Cotton is manually picked in the State. The living standards of rural people will be
affected by the performance of cotton cultivation, which is matter of serious concern.
With this back drop, the present study is proposed to examine the labour use pattern
in Bt cotton cultivation in Andhra Pradesh state of India during 2007-08 The study
used Multi-stage stratified random sampling method to select the respondents from
among the farm households. Data regarding gender wise hired labour participation,
family labour contribution, farm practices in Bt and Non Bt cotton cultivation and
perceptions about farming were collected. A positive relationship is found between
labour use and farm size. The fact of preponderance of marginal and small farmers
is crucial for any understanding or assessment of the farmers’ condition.
Dependence of wage labour is high among marginal and small farmers. 10 per cent
of the marginal farmers and 7 per cent of the small farmers have reported that they
derive their main income from agricultural wage labour. When it comes to
subsidiary occupation the percentages were 54 and 44 for these two categories of the
farmers. A small proportion of medium farmers too are dependent on wage labour
either as main occupation or subsidiary occupation. Marginal and small farmers
work on their fields and also work as hired labouers. We don’t find a dichotomy
between owner and labourer in these households. Things have changed for the large
landowners too, unlike in the olden days when women of dominant peasant
communities from large holdings did not go to the fields to work or to supervise
work.The system of permanent labourers which was prevalent some decades ago has
almost disappeared. There are hardly any permanent labourers or bonded labourers
in cotton cultivation in AP villages now. Wages for agricultural labouers vary from
season to season. They also vary from men to women. The disparities in wages
between men and women could be due to the diffent kinds of works they do.
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Generally there is a gender divisioin of labour. When men and women parcipate in
the same work such as cotton picking both are paid the same wages. In Bt cotton
cultivation labor requirements for pest control decrease, more labor is employed for
harvesting. Based on perceptions of the farmers it can be concluded that through Bt
technology labour use efficiency, employment opportunities has increased and
returns to labor improve remarkably. And ultimately it reduces the disguised
unemployment in agriculture. The aggregation of labour use pattern shows that
females earn much more from Bt cotton than males. This is due to the fact that cotton
harvesting is largely carried out by hired female laborers, whose employment
opportunities and returns to labor improve remarkably. Pest control, on the other
hand, is often the responsibility of male family members, so that Bt technology
reduces their employment in cotton production. The increase in employment due to
Bt cultivation is also shared by family labour. It could be concluded that the
elasticity of employment is found to be high among Medium and Semi Medium
farming categories and lower in Marginal and Small categories. . The new BT
technology is a big gain for the rural economy as a whole, since the rural
employment growth has been the biggest concern in the state in the past
decade.However, the saved family labor can be reemployed efficiently in alternative
agricultural and non-agricultural activities, so that also for males the overall returns
to labor increase. And also, they have noticed that the implementation of
Government employment programmes should be implemented based on agro
climatic conditions in the state and crop status.

KEYWORDS: Bt cotton and Non-Bt cotton, employment elasticity, Hired labour and
family labour, and Size of holding.
______________________________________________________________________________

INTRODUCTION

Cotton is a commercial crop known for its use as fiber. India with its 13 per cent share of world’s
cotton production ranks the third largest producer of cotton in the world and ranks number one in
area planted under cotton (25.9 per cent). The living standards of rural people will be effected by
the performance of cotton cultivation, which is matter of serious concern. The new technologies
will certainly have a certain impact on employment of human labour particularly woman labour.
These technologies generally are expected to have a positive impact on employment, as there is
always a huge under-employment and disguised unemployment in the country. Women labour
component in cotton cultivation is higher when compare to men. Apart from domestic work and
taking care of children, women particpate in agricultural activities such as supervision of
labouers on the field and themselves participating in opeartions such as sowing, weeding, and
cotton picking and helping males in works that the latter do. Bt cotton is often associated with
higher effective yields, so that more labor is used for harvesting. On the other hand, the inbuilt
pest resistance leads to lower labor requirements for pest scouting and spraying. Net effects on
labor input in cotton production may be positive or negative. In addition, however, the timing
and source of labor inputs matter. While in India, cotton harvesting is predominantly carried out
by hired female laborers, pest scouting and spraying is often performed by male members of the

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farm family. When labor time is saved, the household income effect will also depend on how the
saved time can be used alternatively, that is, the opportunity income.

IMPORTANCE OF THE STUDY

Bt cotton technology is associated with a substantial overall generation of rural


employment. This has interesting gender implications. Cotton is a labour intensive crop. Unlike
in other countries cotton farming is not highly mechanized. Cotton is manually picked in the
State. Also, most farmers engaged in cotton cultivation in the State are small farmers owning less
than 5 acres of land. For these people cultivation is not a capitalist enterprise, but a source of
livelihood. The living standards of rural people will be effected by the performance of cotton
cultivation, which is matter of serious concern. With this back drop, the present study is
proposed to examine the labour use pattern in Bt cotton cultivation in Andhra Pradesh state.

OBJECTIVES

1. To study the impact of Bt technology on labour use pattern in cotton cultivation.

2. To examine the employment elasticity with Bt cotton yield.

METHODOLOGY

The study used Multi-stage stratified random sampling method to select the respondents
from among the farm households. The study is based on sample survey of selected farm
households in six villages of Warangal and Guntur districts of the Andhra Pradesh. It was
decided to select a sample of 408 farm households. Taking district as a unit, the sample size of
farm households for a district was kept at 204. Thus in the sample there is one village each for
the 12 Mandals in the two districts. After selecting villages, a census survey of farm households
was conducted to prepare a comprehensive list of all farm households cultivating cotton in each
village, irrespective of the extent of area cultivated and ownership of land. The size of the sample
for each village was fixed in proportion to the percentage of the cotton farmers in that village.
Once the sample size was fixed for the village, the sample size for each stratum was determined
in a proportionate manner. From each stratum, sample respondents were selected by following
the systematic sampling method, using a random start. A detailed structured questionnaire was
used to elicit the information from the farm households. The data collection has done during
December 2007 - January 2008. To examine the labour use pattern in cotton cultivation, Data
regarding gender wise hired labour participation, family labour contribution, farm practices in Bt
and Non Bt cotton cultivation and perceptions about farming were collected.

RESULTS OF THE STUDY

COMPOSITION OF POPULATION, WORK FORCE AND FAMILY SIZE OF THE


RESPONDENTS

The demographic profile of the cotton households revealing the sizes of their respective
families is distributed as per the farming categories, in the Table -1.

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TABLE -1

FAMILY SIZE OF THE RESPONDENTS

Total
Work force
population
Averag
Farming Category Non e family
Femal Childre Worker size
Male Total
e n s worker
s

168 152 94 256 158 414


Marginal farmers 3.80
(40.58 (36.71) (22.70) (61.84) (38.16) (100.00
) )

259 219 136 374 240 614


Small farmers 4.02
(42.18 (35.66) (22.14) (60.91) (39.09) (100.00
) )

191 180 76 269 178 447


Semi-medium
4.38
farmers (42.73 (40.26) (17.00) (60.18) (39.82) (100.00
) )

79 67 26 109 63 172
Medium farmers 4.78
(45.93 (38.95) (15.11) (63.37) (36.63) (100.00
) )

17 17 7 26 15 41
Large farmers
4.22
(41.46 (41.46) (17.07) (63.41) (36.59) (100.00
) )

714 635 339 1034 654 1688


Total
4.12
(42.30 (37.61) (20.08) (61.26) (38.74) (100.00
) )

Source: Primary data.

Note: Figures in the parentheses indicate the percentage to total population.

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As shown in the table, males constitute 42.30 per cent to the total composition of sample
households and female constitute 37.60 per cent and the children constitute 20.08 per cent. It is
observed that the proportionate size of males is higher than that of females in all farming
categories and it is higher among medium farmers when compared to other farming categories. It
is almost same with the semi-medium (42.73 per cent) and small farmers (42.18). As for children
they constitute higher proportion among marginal (22.70 per cent) and small farmers (22.14 per
cent). With regard to female, their proportion is higher among semi medium farmers. The
average size of the family is small for marginal and small farmers when compared with the other
farmers. Among all farming categories the average family size of medium farmers is high,
which is ‘4.78’. The average size of the family is 4.12.

FARM PRACTICES IN COTTON CULTIVATION

The pattern of labour use in cotton indicates the relationship between labour use and
cotton yield. In cotton cultivation female labour outnumber male labourers. The demand for
different categories of labour depends on the land holding size. The proportion of hired labour to
total labour is increasing with the farm size. In contrast to this the proportion of family labour
declining with the increasing farm size. Non-availability of adequate number of labourers and
high rates of wage labour have been the major problems that make the farmers feel tense and
anxious in cotton cultivation. As it is found in the Table-2, there are 5.4 per cent of the
respondents consisting of marginal, small and semi-medium farmers engage women to spray
pesticides over their crops, whereas 12.0 per cent of the respondents involve their children also
in the work on the fields.

TABLE- 2

PERCENTAGE OF HOUSEHOLDS BY FARM PRACTICES

(IN PERCENTAGE)

Farm Size Groups


Semi-
Marginal Small Medium Large Total
medium
farmers farmers farmers farmers
farmers
Women labor in spraying
7.3 5.3 5.9 - - 5.4
pesticides
Farmers children in cotton farms 5.5 9.2 11.8 33.3 55.6 12.0
Child labor in spraying the
2.8 1.3 - - - 1.2
pesticides
Migrant labour in cotton farms - 9.9 12.7 38.9 44.4 11.3
Precautions are taken in spraying 9.2 9.9 8.8 5.6 - 8.8
Got training regarding the safe use 2.8 0.7 - 2.8 - 1.2
Source: Primary Data

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Wage labourers are employed in cotton farming in the activities of sowing, weeding,
fertilizer application, spraying of pesticides, harvesting and packing in bales. Land preparation,
such as ploughing and flattening of the soil, is mostly done with machines. The system of
permanent labourers which was prevalent some decades ago has almost disappeared. There are
hardly any permanent labourers or bonded labourers in cotton cultivation in AP villages now.

The local labour is sufficient to meet most of the labour demand in the village. In some
villages of Warangal, labourers from nearby villages go to work on a daily basis. In such cases,
the farmer pays the transport cost too. As there is scarcity of labour in some villages of Guntur,
in migration of labourers from other regions, such as Kurnool, take place. The migrant labourers
stay in the villages in the peak season such as the cotton picking. Usually the farmers provide
accommodation and firewood to the migrant labourers. These labourers are obliged to work on a
priority basis to the farmer who provides accommodation

When we consider the aspects of income pattern among cotton farmers, we should keep in
mind that they derive their income from other crops, allied agricultural activities and non-farm
employment. Although care was taken to ascertain income particulars from the families, there
seems to a tendency among the farmers to underreport the actual income. Instead of reporting
various income groups among the farmers, we report the mean scores of income for different
classes of farmers, which give a rough idea of the condition of farmers in different classes.

FARMING CATEGORY WISE OCCUPATIONAL STRUCTURE

Agriculture is the prominent occupation of the people in rural India. A glance at the
Table- 3 shows that the respondents have different occupations. At the same time they engage in
various other vocations to generate and enhance their income. The data presented in Table shows
that the main occupation of almost all the heads of the sample households (92.9 per cent) is
cultivation except a negligible number (5.6) whose main occupation is agricultural labour or
some other labour (1.5 per cent). Agricultural labour as the main occupation is found high
among marginal, small farmers and semi medium only.

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TABLE -3

OCCUPATIONAL STRUCTURE OF THE RESPONDENT

Farming category

Occupation Semi- Total


Marginal Small Medium Large
medium
farmers farmers farmers farmers
farmers

Cultivation 97 141 96 36 9 379

*(25.6) (37.2) (25.3) (9.5) 2.4) (100.0)

**(89.0) (92.8) (94.1) (100.0) (100.0) (92.9)

11 10 2 0 0 23
Agricultural
labourer (47.8) (43.5) (8.7) (0.0) (0.0) (100.0)

(10.1) (6.6) (2.0) (0.0) (0.0) (5.6)

Any other 1 1 4 0 0 6

(16.7) (16.7) (66.7) (0.0) (0.0) (100.0)

(0.9) (0.7) (3.9) (0.0) (0.0) (1.5)

109 152 102 36 9 408

Total (26.7) (37.3) (25.0) (8.8) (2.2) (100.0)

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Source: Primary data.

* Percentages to the type of occupation total

**Percentages to the total number of farming category

LABOUR USE PATTERN IN BT COTTON AND NON-BT COTTON IN ANDHRA


PRADESH

While additional income generation is very important for the farming community as a
result of new technologies like Bollgard cotton, the creation of additional employment for the

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labour is no less significant for the rural economy as whole and landless labourers in particular.
Among all these categories, the small farmers cultivated their Bt cotton with least number of
total 115 labourers, whereas the maximum (153 labourers) could be observed in case of large
farmers (Table-4).

TABLE-4

LABOUR USE PATTERN IN BT COTTON AND NON-BT COTTON IN ANDHRA


PRADESH

Total Total
Male labour Female labour Family labour
labourers
hired labour

Non Non Non Non


Farming category Bt Bt Bt Non Bt Bt Bt Bt Bt Bt Bt

Marginal Farmers 4 4 63 63 68 67 47 39 115 106

( below 2.5 acres) (5.88) (5.97) (92.65) (94.03) (59.13) (63.21) (40.87) (36.79) (100) (100)

Small Farmers 6 8 72 66 78 74 49 46 127 120

( 2.50 to 5 acres) (7.69) (10.81) (92.31) (89.19) (61.42) (61.67) (38.58) (38.33) (100) (100)

Semi-Medium Farmers 8 9 76 59 84 68 42 33 127 101

( 5 to 10 acres) (9.52) (13.24) (90.48) (86.76) (66.14) (67.33) (33.07) (32.67) (100) (100)

Medium Farmers 12 13 72 53 84 66 38 28 122 94

( 10 to 25 acres) (14.29) (19.70) (85.71) (80.30) (68.85) (70.21) (31.15) (29.79) (100) (100)

Large Farmers 13 16 85 72 98 88 55 44 153 132

( above 25 acres) (13.27) (18.18) (86.73) (81.82) (64.05) (66.67) (35.95) (33.33) (100) (100)

Total 7 10 71 60 78 70 46 38 124 108

(8.97) (14.29) (91.03) (85.71) (62.90) (64.81) (37.10) (35.19) (100) (100)

Source: Primary data. ** Percentage to the total labour.

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There was no large variation among the rest of categories in Bt cotton situation. On an
average 124 labourers required in Bt cotton cultivation, which was 13 per cent higher than that
of Non Bt cotton cultivation. Hired labourers are employed in cotton farming in the activities of
sowing, weeding, fertilizer application, spraying of pesticides, harvesting and packing. The
employment opportunities increased with Bt cotton cultivation in all the farming categories,
though not uniformly. The hired labourers engaged in Bt cotton is 62.90 per cent to the total
labour requirement and 11 per cent higher than Non-Bt cotton. The increase in hired labour in Bt
cotton cultivation over Non Bt cotton cultivation is highest in medium (21.43 per cent) and semi
medium farmers (19 per cent) followed by large farmers (10.20 per cent), small farmers (5.12 per
cent) and Marginal farmers (1.47 per cent). Further, it is found that there is a positive
relationship between hired labour use and farm size and the generation of employment. The
maximum increase in employment in Bt cotton over Non Bt cotton cultivation can be observed
in large farmers among size groups. And there is not significant growth in employment among
small farmers and marginal farmers.

It is found from the data, the proportion of hired labour to total labour is increasing with
the farm size in Bt cotton cultivation. In contrast to this the proportion of family labour declining
with the increasing farm size in Non Bt cotton cultivation. Out of this increase, hired labour and
family labour accounted for 62.90 and 37.10 per cent, respectively. While the major beneficiary
of this increase is hired labour, there is also increase in the use of family labour to a certain
extent. This helps them to get more of the returns from the cultivation of Bt cotton.

The female labourers are the major beneficiaries among hired labourers. They got 8 days
more of employment due to Bt cotton cultivation. On and average about 71 female labourer are
engaged in Bt cotton cultivation, which was 15.5 per cent higher than that of in Non Bt cotton.
From the analysis it is found that the labour use pattern in cotton indicates the relationship
between labour use and yield.

EMPLOYMENT ELASTICITIES IN BT COTTON OVER NON-BT COTTON:

To explore the exact relation between Bt cotton yield and labour used the employment
elasticities have been worked out and presented in table-6.

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TABLE -5

EMPLOYMENT ELASTICITIES IN BT COTTON OVER NON-BT COTTON IN


ANDHRA PRADESH

Per cent Change in Per cent change in Employment


yield in BT cotton employment in BT cotton
over non-BT cotton over non-BT cotton elasticity
Farming category

Marginal Farmers 7.83 17.98 0.44

Small Farmers 5.51 19.64 0.28

Semi-Medium Farmers 20.47 24.07 0.85

Medium Farmers 22.95 21.51 1.07

Large Farmers 13.73 22.59 0.61

Total 12.90 21.44 0.60

Source: Primary data.

Note: The employment elasticity is oBtained by dividing the percent change in employment in
BT cotton over non-BT cotton with percent change in agricultural output growth in BT
cotton over non-BT cotton.

It can be observed from the table-6 that the employment elasticity in Bt cotton cultivation
is 0.60 per cent. It implies that one percent growth in yield due to Bt cotton cultivation results in
0.60 per cent increase in employment. The employment elasticity in medium farmers is the
highest with 1.00 meaning that one per cent growth in yield in Bt cotton leads to one per cent
increase in employment. But elasticity of employment is found to be very low in Marginal and
small farming categories when compared to other categories. The new BT technology is a big
gain for the rural economy as a whole, since the rural employment growth has been the biggest
concern in the state in the past decade.

CONCLUSION

A positive relationship is found between labour use and farm size. The fact of
preponderance of marginal and small farmers is crucial for any understanding or assessment of
the farmers’ condition. Dependence of wage labour is high among marginal and small farmers.
10 per cent of the marginal farmers and 7 per cent of the small farmers have reported that they
derive their main income from agricultural wage labour. When it comes to subsidiary occupation
the percentages were 54 and 44 for these two categories of the farmers. A small proportion of
medium farmers too are dependent on wage labour either as main occupation or subsidiary

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occupation. Marginal and small farmers work on their fields and also work as hired labouers. We
don’t find a dichotomy between owner and labourer in these households. Things have changed
for the large landowners too, unlike in the olden days when women of dominant peasant
communities from large holdings did not go to the fields to work or to supervise work.The
system of permanent labourers which was prevalent some decades ago has almost disappeared.
There are hardly any permanent labourers or bonded labourers in cotton cultivation in AP
villages now. Wages for agricultural labouers vary from season to season. They also vary from
men to women. The disparities in wages between men and women could be due to the diffent
kinds of works they do. Generally there is a gender divisioin of labour. When men and women
parcipate in the same work such as cotton picking both are paid the same wages. In Bt cotton
cultivation labor requirements for pest control decrease, more labor is employed for harvesting.
Based on perceptions of the farmers it can be concluded that through Bt technology labour use
efficiency, employment opportunities has increased and returns to labor improve remarkably.
And ultimately it reduces the disguised unemployment in agriculture. The aggregation of labour
use pattern shows that females earn much more from Bt cotton than males. This is due to the fact
that cotton harvesting is largely carried out by hired female laborers, whose employment
opportunities and returns to labor improve remarkably. Pest control, on the other hand, is often
the responsibility of male family members, so that Bt technology reduces their employment in
cotton production. The increase in employment due to Bt cultivation is also shared by family
labour. It could be concluded that the elasticity of employment is found to be high among
Medium and Semi Medium farming categories and lower in Marginal and Small categories. .
The new BT technology is a big gain for the rural economy as a whole, since the rural
employment growth has been the biggest concern in the state in the past decade. However, the
saved family labor can be reemployed efficiently in alternative agricultural and non-agricultural
activities, so that also for males the overall returns to labor increase. And also, they have noticed
that the implementation of Government employment programmes should be implemented based
on agro climatic conditions in the state and crop status.

REFERENCE

1. Arjunan Subramanian and Matin Qaim(2009), Village-wide Effects of Agricultural


Biotechnology: The Case of Bt Cotton in India World Development Vol. 37, No. 1, pp.
256–267.

2. Pray, C., Ma, D., Huang, J., & Qiao, F. (2001). Impact of Bt cotton in China. World
Development, 29(5), 813–825.

3. Qaim, M. (2003). Bt cotton in India: Field trial results and economic projections. World
Development, 31(12), 2115–2127.

4. Qaim, M. (2005). Agricultural biotechnology adoption in developing countries. American


Journal of Agricultural Economics, 87(5), 1317–1324. Abdul Qayum, and Mr. Kiran
Sakhar : (2004-2005) ‘Bt cotton in Andhra Pradesh’ A three-year assessment, Third
world network Bio-safety information Service, 20 April, Study on Bt cotton in Andhra
Pradesh, INDIA.

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5. Phundan Singh (2004)“Role of Biotechnology in cotton”. “Indian Farming” Dec-2004
Vol-54, No-9.

6. Jana Orphal(2005) “Comparative Analysis of Economics of Bt and non Bt Cotton


Production”, Pesticides Policy Project Publication Series-Special issue No.8, January
2005.

7. APCoAB (2006). Bt Cotton in India – A Status Report, Asia-Pacific Consortium on


Agricultural Biotechnology, New Delhi, India p. 34.

8. Edge J, Benedict J, Carrol J, Reding K (2001). Bollgard Cotton: An assessment of global


economic, environmental and social benefits, J. Cot. Sci. 5(2): 121-136.

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
EMOTIONAL INTELLIGENCE PERSUADES
GENERAL MENTAL ABILITY AND CONSCIENTIOUSNESS

DR. J. VENKATESH*; MR. D. BALAJI**

*Associate Professor, School of Management Studies,


Anna University of Technology Coimbatore, Jothipuram Post,
Coimbatore - 641 047. Tamil Nadu, India.
**Ph.D Research Scholar, School of Management Studies,
Anna University of Technology Coimbatore, Jothipuram Post,
Coimbatore - 641 047. Tamil Nadu, India.

ABSTRACT

This paper aims to explore and test the relationship between emotion recognition
skill and assessment center performance after controlling for both general mental
ability (GMA) and conscientiousness. Every individual’s has a complex
“Psychophysiological Experience” called emotions, which is a state of mind to
influence internal and external environment interacting with the social life,
constructively. Both intra-personal and inter-personal, management of emotions
develops and sustains a better environment within every individual and also to the
organizational environment. It also focuses to test whether participant sex or race
moderated these relationships. Emotion recognition predicted assessment center
performance uniquely over both GMA and conscientiousness, but results varied by
race. Females were better at emotion recognition overall, but sex neither was related
to assessment center performance nor moderated the relationship between it and
emotion recognition. The paper also found that GMA moderated the emotion
recognition/assessment performance link, as the former was important to
performance only for people with low levels of GMA.

KEYWORDS: Performance management, Individual psychology, Emotional


intelligence, Assessment centers.
______________________________________________________________________________

1. INTRODUCTION

Investigations on the significance of emotional intelligence (E-IQ) in work settings are growing
up rapidly in the contemporary business and official environments. E-IQ is the ability to manage
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the emotions of one’s own self and of. The construct is multi-dimensional, and includes
managing, understanding, using and perceiving emotions. The focus here is on the latter
dimension of E-IQ – perceiving emotions, specifically, non-verbal emotions. We focus on
whether individual and demographic differences among people might moderate the effects of
emotion recognition skill on performance. Specifically, the present study examines whether
participant race or sex moderates the relationship between non-verbal emotion recognition and
assessment-center performance. In addition, we examine whether nonverbal emotion recognition
predicts performance, even after controlling for GMA and personality factors, which is
conscientiousness. Research to date typically has not controlled for these important individual
differences. By doing so here, we hope to provide a clearer picture of the role emotion
recognition plays in the performance of complex social and cognitive tasks, while also
examining potential demographic moderators of these relationships.

2. THE CONCEPTION OF NONVERBAL EMOTIONS

Studying nonverbal emotions and their recognition is certainly not new. In fact, Darwin (1872)
acknowledged that emotions are instrumental for adaptive behaviors such as triggering the “fight
or flight” mechanism, for mate selection and for procreation. Much of the early psychological
research on nonverbal emotion recognition focused on identifying differences between
individuals who were better or worse at accurately recognizing nonverbal expressions. In
general, the early research was not done in organizational settings, nor did it focus on
mainstream organizational variables. Results suggested that people who are better at recognizing
nonverbal emotional expressions tend to be more interpersonally sensitive, higher in
psychological adjustment and more trusting of others (see Sabatelli et al., 1983). They also tend
to have more positive interactions with others, and to be more satisfied with their personal
relationships (Noller and Feeney, 1994). In organizational settings, initial work on this topic
tended to focus on the “helping professions”. Researchers have identified positive links between
employees’ skill in emotion recognition and job performance ratings for teachers, officers,
physicians, counselors and similar occupations (e.g. Campbell et al., 1971). Recent research has
focused on the consequences of accurate nonverbal emotion recognition across a relatively, wide
range of workplace settings (see, e.g. Rubin et al., 2005). Current research also suggests that the
relationship between emotion recognition and performance is more complex than previously
assumed. The relationship seems to vary by occupational type and employee gender. For
example, Byron (2008) reported that female (but not male) managers who were better at
nonverbal emotion recognition received higher ratings from their subordinates. In contrast, both
male and female salespeople benefited from better nonverbal emotion recognition skills. Overall,
salespeople who were one standard deviation above the mean at recognizing nonverbal
emotional expressions averaged $1,000 more in yearly salary increases (Byron, 2008). The
relationship between nonverbal emotional decoding and workplace ratings also varies by the
valence (i.e. whether positive or negative emotions) and channel (i.e. facial expression, tone of
voice, or posture; Elfenbein and Ambady, 2002a) of the emotional expression. Thus, the
relationship between emotion recognition and performance seems to be more nuanced than once
believed. While nonverbal emotion recognition skills predict positive outcomes, the strength of
the benefit may vary with individual differences on a number of dimensions (e.g. race, sex,
personality or GMA). One goal of the current research is to further explore the potentially
differential benefits of emotion recognition skills for different people. We first consider whether

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emotion recognition has a unique relationship with work-related performance, even after
controlling for general mental ability (GMA) and personality (specifically, conscientiousness).
Second, we examine whether demographic variables (race and sex) moderate these relationships.
Third, we explore whether emotion recognition skills can compensate for lower levels of GMA
in certain instances. The optimal setting to test these issues is one where many people perform
identical tasks in a tightly controlled environment. In this regard, assessment center data could be
ideal. Assessment centers provide a high degree of control, a large sample for detecting potential
interactions, and a degree of organizational relevance. The combination of these factors is
usually lacking in most organizational field studies. Hence, we report data here on a large sample
of business students completing a mandatory assessment as part of their business education.

3. SIGNIFICANCE OF EMOTIONAL INTELLIGENCE

EI is a relatively new and growing field of research, essential for many areas such as business
and management. Peter Salovey and John Mayer first planned and proposed their theory of EI in
1990. Over the intervening decades, theorists have generated several definitions of EI. Based on
an analysis of the literature, Zeidner et al. consider that there are two models of EI: mental ability
models and mixed models. Mental ability models focus on aptitude for processing affective
information, in which EI is viewed as a well defined and conceptually related set of cognitive
abilities for the processing of emotional information and regulating emotion adaptively. EI is
“the ability to monitor one’s own and others’ emotions, to discriminate between them, and to use
the information to guide one’s thinking and actions”. Those who conceptualize EI as a fairly well
defined set of emotion-processing skills endeavor to assess EI with objective performance tests,
such as solving problems or identification of emotions in pictures. Mixed models conceptualize
EI as a diverse construct, including aspects of personality as well as the ability to perceive,
assimilate, understand, and manage emotions. These mixed models include motivational factors
and affective dispositions. Bar-On, describes EI as “an array of non-cognitive capabilities,
competencies, and skills that influence one’s ability to succeed in coping with environmental
demand and pressures”. Goleman suggests that two domain facets define the competencies
associated with EI: ability – awareness versus management of emotion; and target – whether
competence relates to self versus others. EI is thus described by four components: self awareness
of emotions, social awareness or awareness of emotions in others, management of emotions in
self and management of emotions in others.

Guest and Conway define wellbeing in terms of six constructs including: a manageable
workload; personal control over the job; support from colleagues and supervisors; positive
relationships at work; a reasonably clear role and a sense of control of involvement in changes in
the organization. These parameters of well beings are possible, only by the unique sense of
emotional intelligence. There are intra-personal and inter-personal competencies of EI, which
predominantly explain the notion of well being, both to oneself and to the social environment.
In some cases, wellbeing is also defined in terms of strain. Strain is defined as psychological,
physical or behavioral responses to stressors. Several stressors influence the wellbeing level in a
workplace. The term stressor is used to indicate job or organizational conditions that require
adaptive responses from employees. If an employee’s response to a stressor is either neutral or
even positive then it is not considered as a strain. The negative impact of strain upon an
employee’s efficiency, effectiveness, satisfaction and performance are well-documented.

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Amongst other outcomes, strain is manifested in the form of job dissatisfaction, anxiety,
depressed mood, headache, coronary heart disease, absenteeism, poor performance and turnover,
which are again the outcome of emotional fatigue. And from this the clear indication is revealed
that the roots of negative outcomes are due to emotional influence causing imbalance. A number
of researches are enhanced investigating well being of employees including top performing
leaders and leadership traits in relation to EI. Many authors recognize the necessary shift from
old-school management to true leadership. They describe traditional management as promoting
methodical, detached, micro-managing supervisors who have extreme control over an
employees’ every step and actively separate any emotion from the workplace, similar to the
transactional style of leadership. When these same authors turn to describe successful leadership
traits, their descriptions portray leaders who are aware and have an understanding of their own
and other’s emotions, and are able to use that understanding to effectively motivate, inspire,
challenge, and connect with others, an approach aligned with the transformational style of
leadership. In Kouzes and Posner’s qualitative illustration of leader’s proudest moments, leader
reflections were described in terms of feelings, emotions, and challenges. These authors offer
that transformational leadership traits and experiences such as these are more highly correlated
with employee satisfaction and performance effectiveness than are transactional traits.

4. GENERAL MENTAL ABILITY AND CONSCIENTIOUSNESS

Many studies have found positive relationships between emotion recognition and job
performance; however, none to date have simultaneously considered whether these relationships,
could be explained, by the employees’ GMA and/or personality. If emotion recognition skills
truly are important for performance, they need to be evaluated while controlling for other critical
individual difference variables. The research shows clearly that both GMA and personality,
especially conscientiousness is related strongly to job performance, and should therefore be
controlled when examining the value-added of emotion-recognition skill. For example, GMA is
likely the best predictor of job performance across a variety of contexts. Numerous meta-
analyses have demonstrated that employees who are more intelligent do better at work. While
GMA seems to explain the most variance in job performance, other variables offer incremental
validity to prediction accuracy. The best example is perhaps personality. Many different models
of personality exist, but the most studied in work settings is the Big 5 model. In two meta-
analyses, the Big 5 trait, conscientiousness, emerged as the best personality factor for predicting
job performance across all. Conscientious people are responsible and dependable, and this trait
does not seem to vary much with GMA. In a meta-analysis examining the validity of different
criteria used in personnel selection, conscientiousness produced an 18% increment in validity
over GMA alone. Because GMA and conscientiousness are positively associated with job
performance over a wide range of jobs, we felt it critical to control for these variables when
investigating whether emotion recognition skills would predict assessment center performance,
which to our knowledge has not been done before. Nonetheless, we expect emotion recognition
to show incremental validity for several reasons. First, emotion recognition is likely distinct from
both GMA and conscientiousness.

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5. IMPACT OF SEX AND RACE

Early research on nonverbal emotion recognition focused on possible sex differences. Meta-
analysis suggests that females acquire emotion recognition skills younger in life, and that their
relative advantage in emotion recognition persists into adulthood. In addition, sex may have an
indirect effect on the relationship between emotion recognition and performance ratings. This
effect could be driven by expectations people have about how the sexes differ in their emotion
recognition skills. Because women tend to be better at recognizing emotions they may be more
sensitive to other’s emotional responses as well. Some theorists suggest that women have a
relative advantage over men in emotion recognition skills because women traditionally have
been of lower perceived status than men. The theory of nonverbal behavior supports the notion
that lower status individuals need to be more attentive to the emotional displays of others,
relative to higher status individuals. Doing so is believed to afford advantages to those with
lower status. The need to be attentive to the emotional displays of higher status individuals may
arise because these displays can serve to “keep others in their place and allow an individual to
gain or recover status”. Lower status individuals are expected to observe and recognize the
relative higher status of others, and communication about status can be derived from emotional
displays. Because of their perceived lower status in society, women may benefit more from
accurately recognizing nonverbal emotional expressions that can be used to their advantage.
Thus, appeal to status differences suggests that the increased importance of emotion recognition
for women may be used to help offset perceived status differences between “lower” and “higher”
status work members.

6. CONCLUSION

The present study revealed complex relationships between emotion recognition and assessment-
center performance. Moderators included participant race and GMA. Lower status participants
on both variables gained significantly more from their emotion recognition skills in terms of their
performance than did members of the higher status groups. The idea that sex and race would
have an indirect effect on performance was predicated on linking these variables to status. That
is, women are perceived to have lower status relative to men, and non-whites are presumed to
have lower status relative to whites. Perhaps the failure to find support for the assumption
predicting that sex had an indirect effect on performance bodes well for women, suggesting that
the status differential between men and women currently of college-age is closing. The lack of
sex differences here fits with Snodgrass’ work, which also failed to find differences in emotion
recognition after controlling for other status differences. In contrast, the support for the indirect
effect of race is consistent with the subordination hypothesis and other similar hypotheses
presented by theorists of nonverbal behavior, predicting that advantages will be bestowed on
lower status individuals who are better at emotion recognition. Emotion recognition is
considered a primary component of E-IQ. Because emotion recognition skills are learned early in
life, they likely form the basis for developing the other, more advanced components of E-IQ. The
results of the present study seem to contradict those who argue that E-IQ is an unqualified
predictor of performance. Indeed, optimism surrounding E-IQ has led some to suggest that
measures of the construct should appear in the business school curriculum. While the present
study did not consider the full array of skills that comprise E-IQ, it did examine one critical and
primary component of the construct; emotion recognition. Here we found that emotion

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recognition skills are not uniformly valuable. Rather, they appear to benefit some groups more
than others. Further researches should guide to an improved understanding of the exact nature
and role of skills like emotion recognition as determinants of organizational behavior.

REFERENCES

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McKelvie, S.J. (1989), “The Wonderlic Personnel Test: reliability and validity in an academic
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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
ANALYSIS OF COST AND PROFITABILITY
OF BT & NON BT COTTON - A CASE STUDY OF HAVERI DISTRICT
(KARNATAKA)

DR.C.S.YATNALLI*

*Associate Professor in Commerce,


MA.S.C.College, Haunsbhavi, Karnataka.

INTRODUCTION

Indian agriculture witnessed technological innovation in the mid sixties, which is termed as
‘Green Revolution’. The discovery of High Yielding Varieties (HYV’s), the package of practice
for realising their potential, the mechanization of agriculture involving the development of
machinery system for irrigation, tillage, harvesting, threshing etc are regarded as technological
innovations in agriculture.

Now withstanding the above constraints, agriculture in India has undergone changes of
one kind or the other, mostly in the positive direction during the past three decades. It was the
Green Revolution in the seventies followed by White Revolution in the Eighties. More recently,
the country is witnessing the ‘Blue and Yellow revolutions’ for the improvement of agriculture
production. Now it is time to launch a “Gene Revolution” instead of “Green Revolution” to feed
the world and make Indian farmers rich. The advancement of bio-technology is having dramatic
impacts on global agricultural production. The share of agriculture sector of GDP is at 16.93
during 2011.

IMPORTANCE OF COTTON IN AGRICULTURE

Cotton is also called as white gold in the field of textile industry, by for most important
natural fibre crop commercially grown in about 111 countries in the world. It is the only fibre
crop in which commercial cultivation of genetically modified varieties is in vogue. Textile
industry is the single largest organised industry of the country which sustains livelihood and
provides employment to the millions of farmers, industrial workers and traders. Nearly one third
of the foreign exchange is earned by cotton and textile export.

With 86 million hectares, largest acreage in the world under cultivation of cotton, India is
the largest producer of cotton in the world after China and USA.However, yield is one of the
lowest in the world less than 300kg/ha as against world average of 608 kg/ha. Only one third of

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cotton area is irrigated while two thirds in rain fed. India produces all types of cotton-short
staple, medium staple, long staple and also extra staple cotton. Cotton varieties in India are
many. However, 20-25 varieties only accounted for 97 percent of the cotton produced and 80-
100 varieties make up the remaining three percent. 1

Cotton is one of the important cash crops of the country. It occupies a significant place in
the agricultural and industrial (textile) economy of the country. Nearly 15 million farmers spread
out in over 10 states are dependent on cotton cultivation for their livelihood. 2

The cotton area in India shot up to 90 lakh hectares during 2006-07. Next season, it is projected
at 95 lakh hectares, China has 57 lakh hectares under cotton, while US 42 lakh hectares against
55 lakh hectares two years ago. As a result India in fact, tops the area under cotton for the crop
year 2007. 3

No other country has improved the yield as India. Yield has gone up because of better
crop, management practices, reduction of pesticides and other initiatives, said Mr.Sair, Secretary
General of cotton federation of Indian Textile Industry. 4

The cotton cultivation in Gujarat in increasing every year and it is one of the major cotton
producing states of India. As per the government figures, the area under cultivation for cotton
was 16.75 lakh hectares in 2002-03 which to increased to 21 lakh hectares in 2006-07 and in
coming crop year, it is likely to touch 23 lakh hectares. 5

Cotton yield has gone up by 65 per cent since 2003. From around 302 kg a hectare during
2002-03, it is up to 518 kg this year. For the next season, according to the US department of
Agriculture, it could be 539 kg a hectare Bt cotton contribution to the total production this season
is estimated at 40 per cent and for the coming season, it is projected at 55 per cent. 6

The cultivation of Bt cotton has increased the profitability and net income of farmers.
The average net return has been Rs. 13,168 a hectare against Rs. 4,484 a hectare in non-hybrid
variety crop. A recent nationwide survey of more than 3000 farmers by AC Nielsen found that
for biotech cotton farmers in India, profits increased 78 percent, on average, over farmers who
planted traditional varieties. Yield increase 29 percent, on average. Pesticide use decline by 60
percent, on average. The crop would be harvested in 150 to 180 days, had saved 26 labour days
hectare. However, the seed cost is up by 16 percent. 7

Bt cotton among Indian farmers proves the success of biotechnology in the field of
agriculture. The Karnataka’s Bt cotton farmers appear on top of the world. Monsanto Company
is now developing the second-generation Roundup Ready Flex (RRF) cotton hybrids, which is
expected to increase the flexibility of application and greater weed control efficacy. 8

India is world No.2 in cotton production and world No.1 in acreage (22.8 million acres).
In 2002, Bt cotton becomes the first biotech crop to be approved for commercialization in India
by the Genetic Engineering Approval Committee (GEAC). In 2002 Bt cotton was grown in
72000 acres of land in India. In 2007, that was 14.4 million acres. 9

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The overall production has improved in the country mainly due to switchover to Bt
cotton. Moreover, the yield per hectare has gone up substantially, said Mr. Vijay Trivedi,
Associate Vice-President, Commodity Research Consulting Company. The average yield rose
to 511.30 Kg per hectare against 481.85 Kg per hectare last year. Area under cotton jumped to
100.96 lakh hectares from 91.98 lakh hectares. Gujarat registered the highest yield at 800 Kg per
hectare, while it was 790 Kg per hectare (775.90 Kg per hectare) in Punjab. 10

OBJECTIVES OF THE STUDY

The aim of the study is to analyse the problems associated with cost and profitability of
production and marketing of Bt cotton and non-Bt cotton in Haveri District.

The present study is designed with the following objectives:

1. To study the trend analysis of Bt and non Bt cotton

2. To analyse the price sensitivity of Bt cotton and non-Bt cotton in Haveri district.

3. To find out the problems faced by cotton growers at the time of production and
marketing.

HYPOTHESIS

H1 There is a positive correlation between area and production of cotton

H2 There is more uniformity in price sensitivity of cotton during lean period and less uniformity
during peak period.

H3 The profitability of cotton is directly influenced by the cost of cultivation.

METHODOLOGY: This study is descriptive and exploratory in nature. Both primary and
secondary sources of data are used in the study. The area covers seven taluks of the district viz.
Haveri, Hirekerur, Ranebennur, Byadgi, Hanagal, Savanur and Shiggaon in which, Bt cotton and
non-Bt cotton cultivation is carried an extensive scale. The primary data is collected from 315
cotton growers spread over the seven taluks. The farmers are selected at random of different
sizes and the selected farmers are duly categorised under marginal, small and large farmers.
Similarly, 315 marketing functionaries from seven taluks. The secondary information is collected
from various published and unpublished materials from district/state offices. The statistical tools
are used to analysed and interpretation of the data.

The decadal growth of area, production and Productivity of cotton in India along with
coverage under irrigation is shown in table No.1

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TABLE.1

ALL-INDIA AREA, PRODUCTION AND YIELD OF COTTON FROM 1950-51 TO 2010-


2011 ALONG WITH PERCENTAGE COVERAGE UNDER IRRIGATION

Area-Million Hectares

Production-Million Tonnes

Yield-Kg/Hectare

Year Area Production Yield Percentage Coverage under


Irrigation

1950-51 5.88 3.04 88 8.2

1960-61 7.61 5.60 125 12.7

1970-71 7.61 4.76 106 17.3

1980-81 7.82 7.01 152 27.3

1990-91 7.44 9.84 225 32.9

2000-01 8.53 9.52 190 34.3

2003-04 7.60 13.73 307 27.1

2004-05 8.79 16.43 318 36.9

2005-06 8.68 18.50 362 36.1

2006-07 9.14 22.63 421 35.0

2007-08 9.41 25.88 467 35.1

2008-09 9.41 22.28 403 NA

2009- 10.31 23.93 395 NA


10*

2010- 11.00 33.50 518 NA


11**

Mean 8.51643 15.26071 291.21429

S.D. 1.31705 9.0597 142.95194

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Source: Directorate of Economics and Statistics, Department of Agriculture and co-operation.

The table No.1 analysis that the growth of area, production and yield of cotton from 1950
– 51to 2010-11 with 5.88 million hectare to 11.00 million hectare. As result the area under cotton
India tops in the world for the year 2010-2011.The production of cotton from 1950-51 to 1980-
81 was fluctuating, the growth of cotton in the decade was increased by 71.23 percentage during
1980-1990.The production during 2000-2001 was 8.53 million tones, which was increased to
11.00 million tons during 2010-2011.The yield of cotton was very less in the initial stage,
whereas it was increased by 518 Kg/hectare during 2010-2011.The result of six decade growth of
cotton with mean value 8.51,15.26 and 291.21of area, production and yield respectively.

The growth of area, production and yield of Bt cotton in India from 2000-01 to 2009-10
is shown in table No2.

TABLE NO.2

GROWTH OF AREA, PRODUCTION AND YIELD OF BT COTTON IN INDIA

FROM 2000-01 TO 2009-10

Area Output Yield


S.No Year
(in lakh hectares) (in lakh bales of 170 kg) (in Kg/ hectares)
01 2000-01 85.76 140.00 278
02 2001-02 87.30 158.00 308
03 2002-03 76.67 136.00 302
04 2003-04 76.30 179.00 399
05 2004-05 87.86 243.00 470
06 2005-06 86.77 244.00 478
07 2006-07 91.44 280.00 521
08 2007-08 94.14 307.00 554
09 2008-09 94.06 290.00 524
10 2009-10 99.94 320.00 544
Mean(X) 88.024 229.7 437.8
S.D. 7.46186 70.87869 107.55753
C.V. 1.17366 6.89282 10.41612
Source: The Hindu, Business Line, Saturday, October 17, 2009, p.2.

The table No.2 indicates that both area and production of Bt cotton from 2000-01 to
2009-10 was fluctuating, whereas the yield of Bt cotton from 2000-01 to 2009-10 shows in

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increasing trend, it amounts to 51.10 percentages of increase in yield of Bt cotton.. The area and
output of Bt cotton from the year 2004-05 shows the positive trend up to 2009-10.The average
growth of area in Bt cotton from 2000-01 to 2009-10 with mean value is 88.024, similarly output
and yield mean value is 229.7 and 437.8 respectively. The C.V. for the said period is 1.1736,
6.892 and 10.416. It is correlation with area, output and yield respectively. H1 is accepted

The Karnataka’ share of Bt cotton cultivation is shown in the table no 3

TABLE NO. 3

KARNATAKA’S SHARE IN THE INDIA’S BT COTTON CULTIVATION

(AREA IN LAKH HECTARE)

Sl. Area Under Bt Cotton cultivation Karnataka’s Share


Year
No. Karnataka India (In Percent)

01 2002-03 -- 76.67 --

02 2003-04 0.022 76.30 0.00028

03 2004-05 0.17 87.86 0.193

04 2005-06 0.28 86.77 0.322

05 2006-07 0.81 91.44 0.885

06 2007-08 1.47 94.14 1.561

07 2008-09 2.11 94.06 2.243

08 2009-10 2.62 99.94 2.621

Mean(x) 1.0689 88.3975 1.1179

S.D. 1.0201 8.4036 1.0419

C.V. 0.1744 1.5296 0.1744

Source: Commissioner of Agriculture office, Bangalore.

The table no 3 analysis growth and share of Bt cultivation in percentage from 2002 to
2009-10. The growth of Bt cotton in Karnataka is increasing trend, it varies from 0.68 percent to
53.59 percent in a decade The share of Bt cotton in Karnataka is 3 percent with C.V. of 0.1744.

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The growth of Bt and non Bt cotton in Haveri district from 2004-05 to 2008-09 is shown in table
no.4.

TABLE NO:4

GROWTH OF BT COTTON AND NON-BT COTTON IN HAVERI DISTRICT

2004-05 - 2008-09

(AREA IN HECTARES)

Year Bt cotton Area Non Bt cotton Area Share of Bt cotton

(In percentage)

2004-05 8137 55263 14.72

2005-06 9159 50612 18.09

2006-07 19343 57116 33.86

2007-08 44573 34327 129.84

2008-09 74024 17910 413.31

Mean (X) 31046.2 43045.6 121.964

S.D 28156.3952 16675.60944 169.55672

C.V 5036.8924 2983.3123 30.4284

Source: District Agricultural Department, Haveri.

It is observed from the table No.4 that the area of Bt cotton during 2004-05 is 8137
hectares, which is 14.72 percent of non-Bt cotton. The area is increased to 74024 hectares of Bt
cotton during 2008-09, which is 413.31 percentage of non-Bt cotton. It is important to note that
the share of Bt cotton has been increased from 14.72 percent to 413.31 percent in Haveri district.
The loin share of Bt-cotton area with the difference of C.V. is 30.42.

Problems faced by the sample farmers in cultivation of Bt cotton in the study area during
2010-11 is shown in table no.5

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TABLE NO:5

PROBLEMS FACED BY SAMPLE FARMERS IN CULTIVATION OF BT COTTON IN


HAVERI DISTRICT DURING 2010-11

Sl.No Problems Garret Score Rank

01 High Seed Cost 73.58 1

02 Non availability of quality seeds 71.54 2

03 Low market price 58.83 3

04 No market structure 51.37 4

05 Medium staple variety 49.93 5

06 Inferior quality 43.75 6

07 Pest occurrence 42.48 7

08 Low yield 33.30 8

Source: Data collected from field survey

The table no 5 interprets that the high seed cost of Bt cotton in the study area is the main
problem with the sample farmers with 73.58 percent, represents first rank. It is followed by non
available of quality seeds and low market price The government export policy has direct effect
with the market price of cotton during 2010-11.Low yield of cotton represents eighth rank, It has
no problem for sample farmers in Bt cotton.

DISPOSAL OF MARKET SURPLUS

The study brought out that all sample farmers sold their produce through normal market
channel in the regulated markets either at the principal yard or purchase centre in the village
itself. The patter of sale adopted by the selected farmers for cotton as shown in table 6

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TABLE 6

PATTERN OF SALE OF COTTON ADOPTED BY THE SAMPLE FARMERS-2010-11

Sl. Percentage of Percentage of average


Period No. of farmers
farmers quantity
No.

01 Peak 176 55.87 56.14

02 Mid year 109 34.60 28.00

03 Lean 30 9.53 15.86

Total 315 100.00 100.00

Source: Data collected through interview.

The table no.6 revealed about 56, 35, 10 percent of farmers sold the cotton in peak,
midyear and lean period respectively. However the quantity sold in these three respective periods
was about 56, 28, and 16 percent. This showed that majority of farmers disposing of their
produce in the peak period was 176 farmers, but their share in total marketed surplus about 56
percent. It was observed that majority of farmers disposal their marketed surplus in peak period
due to immediate cash requirement and lack of storage facility, only 10 percent of farmers
having better retention capacity disposed 16 percent of average quantity in lean period.

Traders tend to manipulate the situations. During post harvest season, when the prices are
low, they make bulk of the purchases. Later on, they withhold the stock to cause artificial
scarcity in the market and in this way the prices become higher under restricted supplies. Thus,
there occurs fluctuation in prices in between post-harvest months and lean months for the crop.

The seasonal indices in the prices and arrivals of cotton in Karnataka is shown in
table no.7.

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TABLE NO. 7

SEASONAL INDICES IN THE PRICES AND ARRIVALS OF COTTON IN


REGULATED MARKETS OF KARNATAKA 2005-06 TO 2010-2011

(IN PERCENTAGE)

Sl
Arrivals
Month/Period Prices (X)
(Y)
No

I Peak Period -Co-efficient of correlation:-0.260416

01 October 8.39 10.52

02 November 8.54 23.17

03 December 7.77 19.88

04 January 8.65 10.91

05 February 8.27 9.21

II Mid Period-Co-efficient of correlation:-0.181368

06 March 8.86 7.96

07 April 8.41 7.26

08 May 8.76 2.90

III Lean Period- Co-efficient of correlation-0.995778

09 June 9.22 1.51

10 July 9.43 1.28

11 August 9.46 1.08

12 September 8.26 2.73

Co-efficient of correlation: -0.645494

Source: Prepared from data of directorate of Economics and statistics, Bangalore.

Table 7 indicates that percentage of month wise seasonal variation of wholesale price and
arrivals from 2005-06 to 2010-2011. The price parity index clearly reveals the fact that growth
rate of cotton and arrivals movement. The arrivals of cotton were higher in the month of peak

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period (October to February) in all the markets. Never the less, the arrivals start decreasing
sharply from June/July onwards, Arrivals were the lowest in the month of August i.e., 1.08
percent of arrivals. The arrivals in peak period varied between 9.21 percent to 81.55 percent,
whereas during lean period the arrivals varied between 14.61 percent to 23.17 percent.

The table clearly concluded that the seasonal character of percentage of wholesale prices
coincided with the characteristics of the market arrivals of cotton. Price percentages were
depressed when the market arrivals were heavy. Thus the arrivals were heavy during October to
February and consequently during the period the price prevailed low in the market. The
co-efficient of correlation is –0.65. The results read as prices of cotton in regulated market of
Karnataka increases, the arrival decreases and vice-versa, H2 is accepted

The opinion of the farmers about the seasonal variation of prices of cotton is shown in the
table No.8

TABLE NO. 8

OPINION OF COTTON FARMERS ABOUT SEASONAL VARIATION OF PRICE

Sl Opinion
Farmers
No Regular Occasional Total

1 Marginal 74 (70.48) 31 (29.52) 105 (100.00)

2 Small 82 (78.10) 23 (21.90) 105 (100.00)

3 Large 88 (89.80) 17 (16.20) 105 (100.00)

244 (77.46) 71 (22.24) 315 (100.00)

Mean 81.31 23.66

C.V. 3.5625 2.5068

Source: Data collected through field survey

Note: Figures in parenthesis indicate column percentage

Table No. 8 identifies that the all categories of farmers have opinioned that seasonal
variation of cotton price is regular with mean of 81.30. But the opinion of occasional seasonal
variation of price of cotton is negligible with mean value of 23.66.

The average economic impact of cotton cultivation of Bt & non Bt cotton is shown in table no.9

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TABLE NO: 9

AVERAGE ECONOMIC IMPACT OF COTTON CULTIVATION WITH AND


WITHOUT BT TECHNOLOGY IN STUDY AREA-2010-11

Sl. Gain with


Particulars Bt cotton Non-Bt cotton
Bt
No.

A. Operating Cost Mean S.D Mean S.D

Material

01 Seeds 4249.33 693.98 450 50 -3299.33

02 Manure 2666.67 288.68 1683.33 160.73 -983.34

03 Fertilizer 3750 250 1100 100 -2650

04 Plant protection 680 158.75 1313.33 80.83 633

Chemical

05 Miscellaneous 300 100 100 50 -200

Sub total (A) 11659.33 1353.02 4446.67 432.47 -7212.33

Labour

01 Picking 11750 1068.00 4266.67 251.67 -7483.33

02 Man/women 4391.67 594.94 1050 300 -3341.67

03 Bullock 3000 250 833.33 144.34 -2166.67

04 Machine 1008.33 142.16 150 50 -850

Sub total (B) 20158.33 2053.09 6300 726.29 -13858.3

B. Fixed Cost

01 Irrigation 5383.33 803.64 1500 173.21 -3883

02 Land Rent 8533.33 577.35 3983.33 225.46 -4550

03 Land revenue 48.33 37.52 48.33 37.52 00.00

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Cess and taxes

04. Depreciation on 348.33 89.48 145.67 31.72 -202.66


farm buildings
equipment

05. Interest on Fixed 215.67 42.85 87.67 18.61 -128


capital

Sub-Total (C) 14529 1510.19 5765 459.97 -8764

Grand total 46346 4781.16 16511.67 1613.12 -29834.3


(A+B)

Source: Data collected from farmer respondents.

Note: Figures in parentheses indicate percentage to the total cost of production.

The table no.9 analysis that the major items of the cost of material by all categories of
farmers were the amount spent on fertilizer and cost of seeds.It is further interesting to note that
the operating costs is also more than fixed costs, it account to 67.72 & 64.25 percent in case of
marginal cost, 69.96 & 65.31 percent in case of small farmers and 69.11 & 65.56 percent in case
of large farmers of Bt and non Bt cotton respectively. It also reveals that the gain with Bt was
only in the case of insecticide cost among the input with 633 mean value.

The profitability impact of Bt cotton during 2010-11 is shown in table no.10.

TABLENO: 10

PROFITABILITY IMPACT OF BT COTTON-2010-11

Profitability Bt cotton Non-Bt cotton Gain


Ratio with Bt
Mean S.D C.V Mean S.D C.V

GPR 56.48 5.98 2.98 39.02 7.76 2.90 17.46

NPR 71.31 23.74 7.07 31.41 7.99 2.77 39.90

ROIR 127.12 33.57 9.86 47.41 17.63 5.35 79.71

Source: Prepared from data collected from farmer respondents

Note GPR=Gross Profit Ratio

NPR=Net Profit Ratio

ROIR=Return On Investment Ratio


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The table No. 10 reveals that low GPR may due to increase in cost of production without
corresponding increase in sales; it is true in case of large farmers i.e., 50.41 and 31.48 percent
GPR of Bt and non Bt cotton respectively. On an average, the GPR of Bt and non Bt cotton crop
is 56.48 and 39.02 percent respectively.

The table also reveals that the GPR gain with Bt is 17.46 mean value, which is higher
non-Bt cotton. The NPR and ROI are also higher with 39.90 and 79.71 mean value. The relative
gain of Bt cotton over non Bt cotton in the study area in favourable to Bt cotton growers.

The cost benefit ratio impact of Bt cotton during 2010-11 is shown in table no.11

TABLENO: 11

COST BENEFIT RATIO IMPACT OF BT COTTON-2010-11

Cost Benefit Bt cotton Non-Bt cotton Gain


Ratio with Bt
Mean S.D C.V Mean S.D C.V

2.23 0.3005 0.4581 1.48 0.1762 0.3333 0.75

Source: Prepared from data collected from farmer respondents

The table No. 11 depicts that the Cost Benefit Ratio is more than one in case of all types
of farmers. It indicates that every rupee of investment in Bt and non- Bt Cotton cultivation
contributes towards maximization of wealth. It is also concluded that the method of cultivation is
financially feasible in all size group of farmers in study area. H3 is accepted

The Cost Benefit Ratio of Bt and non- Bt Cotton cultivation of marginal farmers is more
(i.e. 2.54 and 1.67 ratio respectively), than small and large farmer. The financial feasibility of Bt
and non- Bt Cotton cultivation is favourable to marginal farmers and followed by small and large
farmers. The cost benefit ratio of Bt cotton growers is gained by 0.75 mean value than non Bt
cotton.

FINDINGS

1. The analysis of production of cotton from 1950-51 to 1980-81 was fluctuating, the
growth of cotton in the decade was increased by 71.23 percentage during 1980-1990.The
production during 2000-2001 was 8.53 million tones, which was increased to 11.00
million tons during 2010-2011.The yield of cotton was very less in the initial stage,
whereas it was increased by 518 Kg/hectare during 2010-2011.The result of six decade
growth of cotton with mean value 8.51,15.26 and 291.21of area, production and yield
respectively.

2. The analysis of area and production of Bt cotton from 2000-01 to 2009-10 was
fluctuating, whereas the yield of Bt cotton from 2000-01 to 2009-10 shows in increasing
trend. The C.V. for the said period is 1.1736, 6.892 and 10.416 correlations with area,

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output and yield respectively. H1 is accepted. The growth of Bt cotton in Karnataka is
increasing trend, it varies from 0.68 percent to 53.59 percent in a decade The share of Bt
cotton in Karnataka is 3 percent with C.V. of 0.1744.

3. The analysis of the share of Bt cotton has been increased from 14.72 percent to 413.31
percent in Haveri district. The loin share of Bt-cotton area with the difference of C.V. is
30.42.

4. The analysis of the majority of farmers disposal their marketed surplus in peak period due
to immediate cash requirement and lack of storage facility, only 10 percent of farmers
having better retention capacity disposed 16 percent of average quantity in lean period.
The co-efficient of correlation is –0.65. The results read as prices of cotton in regulated
market of Karnataka increases, the arrival decreases and vice-versa, H2 is accepted

5. Analyses of all categories of farmers have opinioned that seasonal variation of cotton
price is regular with mean of 81.30. But the opinion of occasional seasonal variation of
price of cotton is negligible with mean value of 23.66.

6. Analyses of the operating costs are also more than fixed costs. It also reveals that the gain
with Bt was only in the case of insecticide cost among the input with 633 mean value.

7. Analysis of the GPR gain with Bt is 17.46 mean value, which is higher non-Bt cotton.
The NPR and ROI are also higher with 39.90 and 79.71 mean value. The relative gain of
Bt cotton over non Bt cotton in the study area in favourable to Bt cotton growers. It is
also concluded that the method of cultivation is financially feasible in all size group of
farmers in study area. H3 is accepted.

REFERENCES

1. Dr T.V.Karivaradaraaju Requirement of ELS cotton in India –analysis and strategies,


Chief Advisor, Paper Presented in National Seminar.

2. A.Narayanmoorthy and S.S.Kalamkar,”Is Bt cotton cultivation economically viable for


Indian farmers?” Economic and Political Weekly, Vol. XLI No 26,june- July
2006.P.2716.

3. Subramani. M.R. “India pips us to become 2nd largest cotton producer” The Business
Line, 29th September, 2007. Front page.

4. Subramani. M.R. “India pips us to become 2nd largest cotton producer” The Business
Line, 29th September, 2007, front page.

5. Soumitra Trivedi, “cotton acreage may increase by 25%” Business standard, 3rd July
2007.

6. Ebid,fronpage.

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7. Mahalingappa Shankarikoppa(2004) “ cotton create three times the earnings for Indian
farmer”(Retrieved from http;//www.Google.com on 28-03-2008.

8. Shallni Sengupta “ Bt cotton farmers reap profits and smiles” The Times of India,
Wednesday, 28th November ,2007, P.21.

9. Ebid P.21

10. Suresh.P.Iyengar “ Cotton arrivals peak; plans to launch Bt futures contract” The Hindu
Business Line, 21st, November 2007, P.9.

11. Directorate of Economics and Statistics, Department of Agriculture and co-operation.

12. The Hindu, Business Line, Saturday, October 17, 2009, p.2.

13. Commissioner of Agriculture office, Bangalore.


14.
District Agricultural Department, Haveri.

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
CHILDREN’S EDUCATIONAL STATUS AND
PERFORMANCE: ROLE OF FAMILY ENVIRONMENT IN INDIAN
CONTEXT

DR. PUSPITA DATTA*; SANJIT SARKAR**

*Assistant Professor,
International Institute for Population Sciences,
Govandi St. Road, Deonar-400088, Mumbai, India.
**Research Scholar,
International Institute for Population Sciences,
New Hostel, Govandi St. Road, Deonar-400088
Mumbai, India.

ABSTRACT

Constitutionally, children up to age 14 years in India have fundamental right to free


and compulsory education, but many children remain far from school, either they
are never enrolled or enrolled but drop out. Despite of several efforts like ‘Survya
Shikshya Avijan’ ‘Midday meal scheme’ etc., enrollment rate has increased and
dropout rate has decreased over the time but nowadays performance of children in
school become important researchable issues. Child’s performance in school not
only depends on the school quality or teacher’s quality but also on the family
environment where the child grew. This study is an attempt to observe the role of
family environmental factors on children’s educational status. Analyzing secondary
dataset National Family Health Survey-3, the study shows that ever enrollment
status is affected significantly by all components of family environment-living
situation, parental survival status, educational environment and economic
environment, whereas performance mainly affected by parent’s educational status
rather than other components of family environment. It can be concluded from the
study that parental survival status, educational environment and economic
environment are the significant components of the family environment to affect
children’s educational status and performance, in Indian context.

KEYWORDS: Educational Status, Performance, Family, Environment.


______________________________________________________________________________

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1. INTRODUCTION
India has made elementary and free child education to achieve the Universal Elementary
Education. In 1997, Government of India envisaged a constitutional amendment to make
education a fundamental right. In 2002, education as a fundamental right was passed as 86th
amendment of the constitution (Pandey, 2000). Constitution of India states that: all children up to
age 14 years have a fundamental right to free and compulsory education as will be detailed in
law by the government. Despite of several efforts education for all have not achieved in India. In
this context, several research have been made to understand the aspects of child education like,
enrolment status in school, school dropout, repeating in the class, (Saraswat, 1982; Desai &
Uchat, 1983; Panwar,1986 ; Lyon,1993). Family environment has an influence on the child
education, especially for the early adolescent age group (David & Eitel, 1994). Family
environment refers to the whole range of socio economic characteristics of family comprising
with social, economical, and physical or compositional characteristics of family. The most
common explored dimensions of family environments are: educational back ground of parents,
economic capitals or resources (Carlson& Corcoran, 2001), family composition or structure and
inter-personal relationship (Salem et al, 1998), socialization and stress etc. (Carlson and
Corcoran, 2001). Several studies are attributed to understand the relationship between family
environment and child’s outcomes, such as child behavior, child education and child wellbeing
etc (Peterson & Zill, 1986; Paul,1990; David&Eitel, 1994; Salem et al, 1998; Wong, 1998;
Carlson & Corcoran, 2001; Sun, 2001; Mohanraj&Latha, 2005;Kamaruddin et al 2009; Kaur and
Kaur,2009). But there are few studies which show the particular relationship between family
environment and child education. A perusal review of related literature provides a picture
reflecting the child education in relation to family environment, shows that child education can
be perceive in different way. Academic progresses of school going children have been captured
by cognitive test scores in math and reading (Sun, 2001). Student’s educational aspiration also
included to be acquainted with child education (Sun 2001). Other components like – average
grade points, school attendance and self concept are also considered to assess the school
adjustment during the transition of early adolescence (Dubois et.al. 1994; Felner, 1994). Family
environment have been exposed in different ways in different studies based on the data source
and relation with the child’s achievements in school.

With the growing concern about not only fulfilling the target of achieving the universal
education for all, but to ensure children’s better performance, it becomes very crucial to examine
their performance (i.e. whether successfully completed the last grade or not). Observing
children’s performance/failure is not only important from the point of view that it shows the
quality of children’s education, but high failure rate will cause a extra burden on the family as
well as on the Government education system, in terms of dropout and increased cost of
education. Therefore there is a need to observe children’s educational status and performance
and how it varies across the states in India. The review of previous literature also suggests that
the family environment plays a crucial role in child’s educational performance. Hence, it
becomes imperative to observe the role of family environment on various aspects of children’s
education in Indian situation.

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2. OBJECTIVES
The broad objective is to observe the relationship of educational status (in terms of school
enrollment, attendance and dropout) and performance (in terms of grade completion), of children
aged 5 to 14 years with family environment in India. This paper is also imperative to understand
the child educational status and performance: How does it vary across the states and different
socio-economic levels and how does family environmental factors effect on the children’s
educational out comes.

3. DATA AND METHODOLOGY


Data for this study were drawn from “National Family Health Survay-3” (NFHS-3) conducted
during 2005-06 in India. This data source includes information about household members,
women aged 15-49 years old and men aged 15-54 years old, which have been used to assess the
family environment and child education related factors.

Three types of variable considered for this study: a) Educational variables or outcome
variables include educational status of child in terms of ever enrollment and current schooling
and educational performance. b) Family environmental variables include child living status,
survival status of parents, relationship with household head, parent’s education status, parents
occupation status, and family wealth index etc. c) Child characteristics and other socio economic
variables includes child’s age, sex, birth order, numbers of siblings, place of residence, religion
and cast etc.

Bi-variate cross tabulation and binary logistic regression has been used to analyze the
data. Dependent variables used in the binary logistic regression are: child’s enrollment status
(0=never enrolled &1= ever enrolled), Dropout status among ever enrolled (0=currently
continuing & 1= dropout), Educational performance in terms of grade competition (0= failed &
1= passed successfully). For each dependent variable two models of regression were applied.
Model 1 shows the effects of only family environmental characteristics on the dependent
variable and the Model 2 shows the effect of family environmental characteristics on the
dependent variable, controlling for other child background characteristics and social factors.

4. RESULTS AND DISCUSSIONS


Table 1 shows that there exists state level variation in educational status and performance of
children. It is found that proportion of children ever enrolled in school is highest in Tamil Nadu
(93.1 percent) followed by Himachal Pradesh (91.4 percent), Uttaranchal (91 percent), Kerala
(90.9 percent) and it is lowest in Bihar (57.8 percent) followed by Meghalaya (66.6 percent) and
Nagaland (68.8 percent). Dropout students are found highest for Jharkhand (11.4 percent) and
lowest for Himachal Pradesh (1.2 percent). At national level 80.1 percent children are ever
enrolled in school and among them 6.1 percent is dropout. Among the children who are currently
attending school, ‘good performance of children’ has been found highest in Mizoram (100
percent), followed by Tamil Nadu (99 percent), and lowest in Uttaranchal (87 percent). From
Figure 1it is clearly observed that there is a huge variation in the children never enrolled in
school across the states in India. One in every five children in India aged 5-14 years never

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enrolled in school and the proportion of never enrolled children is lowest in Tamil Nadu (around
7 percent) and highest in Bihar (42.2 percent).

The percentage distribution of children’s educational status and performance by the


background characteristics has been given in Table 2. Ever enrolled status is higher for higher
age group of 11-14 years (91.9 percent) compared to lower age group of 5-10 years (72.3
percent), likewise males are more advance (81.6 percent) than the females (79.7 percent) in the
school enrolment. Ever enrolment status is found higher for those children whose birth order are
lowest and those who are the only child compared to others. School ever enrolment is found
higher for urban children (83 percent) compared to rural children like wise Hindu children are
more likely to get ever enrolled in school than other religion. Result shows that dropout is higher
among female students as well as those children whose birth order is higher and number of
siblings is more. Result also shows that dropout is higher for rural students compared to urban
students, like as dropout is higher among Muslim religion (7.8 percent) and SC cast (6.9 percent)
compared to other religion and cast respectively. Children’s ‘good performance’ is found little
higher among later age group (11-14 years) compared to earlier age group. ‘Good performance’
is found higher among females (96.7 percent) than the males. This result also shows that good
performance is higher among students whose birth order is lowest and those students whose
number of siblings are less, not more than two. ‘Good performance’ is higher for the urban
students (97.4 percent) compared to rural students (95.9 percent). Students from other religion
show higher good performance (96.6 percent) than Hindu students and Muslim students. Good
performance is higher for other backward casts than others.

The family level variation of child education status and performance can be observed
from Table 3. Ever enrolled status is found higher for those children who are living elsewhere
than the other categories of child living status. Children, whose both parents are alive shows
higher ever-enrolled status than the others children. Children with a relationship of son and
daughter show the highest ever enrollment status than the other categories. Children, those both
parents are highly educated and working in tertiary sectors, ever enrollment status is higher for
them. Children from richest family show the highest enrollment status than the families of other
quintiles. Dropout among ever-enrolled students is found higher among those children who are
living with the single mother compared to the others categories of child living status. Orphan
children show the highest proportion of dropout (14.5 percent) compared to the children whose
parents alive (5.8 percent) and either of the parents is alive (11 percent). Among all the category
of parent’s educational status dropout is found higher for the children whose both parents are
illiterate. Dropout is higher for the children whose both parents are working in secondary sectors
compared to the other categories of parents’ occupational status. Students coming from poorest
family show highest school dropout than others students of different wealth quintiles. Children
‘good performance’ (whether child successfully passed the last grade) is found higher for those
students who are living elsewhere compared to other categories of child living status. Orphan
child performance is good than child with other categories of parents’ survival status.
Performance is found good for those children who’s both parents are highly literate, working in
tertiary sectors and those children who are coming from richest family compared to their relevant
categories.

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Table 4 shows the results of logistic regression, which is applied to see the net effect of each
independent variable on the dependent variables, in terms of odd ratio.

4.1 FACTORS EFFECTING ON CHILD EVER ENROLMENTS

In model 1 result shows that family environmental characteristics have significant effects
on the child ever enrollment. Child living elsewhere is more likely to get enrolled than other
categories of child living status. It may be that child is living elsewhere only because of
educational purpose. Child living with both parents is more likely to get enrolled in compression
of the child, living with a mother whose husband staying elsewhere. Child whose relationship
with household head falls in categories of ‘son & daughter’ is more likely to get ever enrolled
than others. Children, whose both parents are literate, highly literate, either of the parent is
literate, highly literate are more likely to get ever enrolled in compression to the children, whose
both parents are illiterate. Result also shows that children, those both parents are in primary
sectors, are more likely to get ever enrolled than the students, whose both parents are in
secondary and tertiary sectors. Different government approaches to achieve the universal
elementary education (like ‘mid -day meal’, free education, stipends etc) may attract the poor
children. In the second model when all child characteristics and social characteristics are allowed
to play with the family environmental characteristics, result does not change significantly. Only
parent’s occupation and parent’s survival status are not significantly effective on the child
enrollment in compression to the earlier model.

4.2 FACTORS EFFECTING ON DROPOUT

In the model 1 result shows that children, living with a mother whose husband stay
elsewhere are 20 percents less likely to fall dropout and children living with single mother are 50
percents more likely to fall dropout in comparison to the children, those living with their both
parents. Several factors come in to play, like parental conflicts (conflicts is higher for the parents
who are living together), Fathers occupation, and are it transferable or not? Whether men transfer
in other place for their job with their family or single? Children, those father transfer one place to
another place with their family are more likely to fall dropout in comparison to the children,
whose father moves without family. Dropout is found higher for the children, who’s either of the
parents is alive in comparison to the children, those both parents are alive. Students whose both
parents are illiterate have higher chances to fall in dropout in comparison to the children, those
both parents are literate, highly literate, and either of the parent is literate , highly literate.
Dropout is found higher for the poorest students in comparison to the higher economic class
students. Result shows that rather than parent’s occupation. Parent’s education and family
economic condition are more significant on the child education out come. In model 2, where
child and social characteristics are added result don’t show any significant change. But parent’s
survival and parent occupation become less significant than earlier model.

4.3 FACTORS EFFECTING ON EDUCATIONAL PERFORMANCE

In model 1 result shows that performance is higher for the children who are living
elsewhere, than the children, those living with both parents. One of the reason could be that
students who are living elsewhere most of them are in good professional educational

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environment, like mission, hostel, ashram etc. Performance is found higher for students, those
either of the parent is alive than those both parents are alive. Performance is found higher for the
students, those both parents are literate, highly literate and either of the parent is literate, highly
literate in comparison to the children, those both parents are illiterate. Performance among the
currently attending students is likely to be lower for children, whose either of the parents is in
tertiary sectors in comparison to those children, whose both parents are in primary sectors. One
of the possible reasons could be that student’s perception on education and parent’s desire from
the children. It means, students, those parents are in primary sectors working hard for their child
education with an expectation to make their child educate and capable, may show better
performance in education. Richer and richest students are likely to show better performance in
compression to the poorest students. In the model -2, when all the child characteristics and social
characteristics are added result shows that among all the family environmental characteristics
only parents educational status are found significant on the performance of student.

5. CONCLUSION
The purpose of the study was to understand the child education with more precisely and explore
the family environment that can effect on the child education in Indian context. A significant
state level variation is found in child education. Some of the states like, Tamil Nadu, Kerala,
Uttaranchal have more than 90 percent children are ever enrolled, where as state like Bihar, only
57 percent children are ever enrolled which calls for a state specific programs and intervention.

The results revealed that ever enrollment status is affected significantly by the all
components of family environment. Student’s performance is mostly affected by parent’s
educational status and parents survival status rather than others family condition. So, finally it
can be said that parent’s educational status and family economic condition, parents survival are
the important components of the family environment which are more likely to effect on the
children education, in Indian context.

Through this study it is felt that there is a need for further studies in this regard to identify
more family environment factors which can have affect on children’s education which were not
possible to capture in this study because of data constraint. As we know that there is gender
discrimination prevail in Indian society, so further research can be done to see how the family
environment is effecting children’s education for specific gender. The research can also be
extended in terms of rural and urban place separately as with the pace of modernization the
family norms and inter-personal relationship within the family is changing very fast and there is
a difference in the families residing in rural areas and in an urban area.

6. REFERENCES
Amato, R.P. (1990). Dimension of family environment as perceived by children: A
multidimensional scaling analysis. ‘Journal of Marriage and Family’, vol. 52, No. 3, pp 613-
620.

Aquilino ,W.S . (1994). Impact of childhood family disruption on young adults' relation ship
with parents. ‘Journal of Marriage and Family’, Vol.-56, No-2, pp. 295 - 313

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Birdsall, N. (1985). ‘Public Inputs and Child Schooling in Brazil’, Journal of Development
Economics Vol.18, No.1, pp. 67-86

Carlson, M.J. & Corcoran, M.E. (2001) Family structure and children's behavioral and cognitive
outcomes. ‘Journal of Marriage and Family’, Vol. -63. Pp. 779-792

Cochrane, S.H., K. Mehra and I.T. Osheba. (1986). ‘The Educational Participation of Egyptian
Children’. Education and Training Series Report EDT45. Washington, D.C.: World Bank.

Drèze, J., and Kingdon, G. G., (2001). ‘School Participation in Rural India,’ Review of
Development Economics, Vol.5, No. 1, pp. 1-24

Dubous, D. L. , Susan K. Eitel, & Robert D. Felner (1994). Effects of family environment and
parent- child relationship on school adjustment during the transition of early adolescence.
Journal of Marriage and Family, Vol.56, pp. 405-414.

Glewwe, P. and H.Jacoby. (1993). ‘Student Achievement and Schooling Choice in Low-Income
Countries: Evidence from Ghana’, Journal of Human Resources, pp. 843-64.

Kamaruddin, R., Rashidha N. & Aminuddin Z.M. (2009). The quality of learning environment
and academic performance from a student's perception. 'International Journal of Business and
Management' vol. 4, No-4,

Kaur, J. Rana, J.S, & Kaur R. (2009). Home Environment and Academic Achievement as
Correlates of Self-concept among Adolescents. Studies on Home and Community Science,
Vol.3, No.1, pp. 13-17

Mc Lanahan. S. & Standefur, G. (1994). Growing up with single parent: What harts, what healps.
Cambridge , M.A : Harvard University press.

Mitchell, B.A, Wister, A.V. (1989) The family environment and leaving the parental home.’
Journal of marriage and family’. Vol. 51, No-3, pp 605-613

Mohanraj.R, & Laha (2005). Perceived Family Environment in Relation to Adjustment and
Academic Achievement.’ Journal of the Indian Academy of Applied Psychology’, , Vol. 31,
No.1-2, pp.18-23

Nebuhr, K. (1995). The effect of motivation on the relationship of school climate, family
environment, and student characteristics to academic achievement, ERIC Document
Reproduction Service, ED 393-202.

Pandey Raghaw. (2000). “Going to Scale with Education Reform: India’s DPEP: 1995-99’,
Country Studies, Education Reform and Management Publication Series, Volume I, The World
Bank, Washington DC

Peteson, J., & Zill, N. (1986). Marital disruption, parent child relationship and behavior problems
in children. Journal of marriage and family, Vol.48, pp. 295-307.

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Raymond S.K. Wong (1998). Multidimentional Infuence of family environment in education:
The case of socialist Czechoslovakia. Sociology of education. Vol. 71, No. 1, pp. 1-22.

Rollins, B.C, & Thomas, D.L, (1979). Parental support , power and control techniques in the
socialization of children. Contemporary theories about family, vol. L, PP. 317-364

Salem, D. A., Zimmerman, M.A, Notaro, P.C. (1998). Effects of family structure, family process
and father involvement on psychosocial outcomes among African American adolescents.

Singh, R.D., (1992). ‘Underinvestment, Low Economic Returns to Education, and the Schooling
of Rural Children: Some Evidence from Brazil,’ Economic Development and Cultural Change,
Vol.40, No.3, pp.645-64.

Sun Youngmin, (2001). Family environment and adolescents' well being before and after parents'
marital disruption : A longitudinal analysis. Journal of Marriage and Family. Vol. 63, No. 3, pp.
697-713.

Sunitha, N.H. & Khadi, P.B. (2007). Academic learning environment of students from English
and Kanda medium high schools. Karnataka Journal of Agricultural Science, Vol.20, No. 4,
pp.827-830

Wong.S.K. (1998). Multidimentional influecce of family environment in education : the case of


socialist Czechoslovia. Sociology of Education. Vol. -71. No-1 , pp.1-22

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TABLE 1: STATE LEVEL VARIATION IN EDUCATIONAL STATUS AND
PERFORMANCE OF CHILDREN (AGED 5 – 14 YEARS)

Educational status of child Performance of child

States Among Ever enrolled Failed in


Passed in the
Ever enrolled Currently the last
Dropout last grade
attending grade
Andhra Pradesh 84.4 91.6 8.4 98.1 1.9
Arunachal Pradesh 69.5 92.7 7.3 87.7 12.3
Assam 90.4 91.6 8.4 95.2 4.8
Bihar 57.8 95.5 4.5 99.4 0.6
Chhattisgarh 80.7 93.5 6.5 93.1 6.9
Delhi 82.4 94.3 5.7 98.5 1.5
Goa 87.6 95.2 4.8 94.7 5.3
Gujarat 87.7 92.2 7.8 88.8 11.2
Haryana 83.4 94 6 97.2 2.8
Himachal Pradesh 91.4 98.8 1.2 98.5 1.5
India 80.1 93.9 6.1 96.5 3.5
Jammu & Kashmir 82.3 93.1 6.9 97.5 2.5
Jharkhand 71.4 88.6 11.4 97.1 2.9
Karnataka 82.4 91.6 8.4 98.6 1.4
Kerala 90.9 95.3 4.7 97.9 2.1
Madhya Pradesh 77.4 93.9 6.1 96.7 3.3
Maharashtra 87.9 95 5 99 1
Manipur 75.3 97.4 2.6 98.5 1.5
Meghalaya 66.6 90.5 9.5 98.8 1.2
Mizoram 84.2 96.3 3.7 100 0
Nagaland 68.8 95.5 4.5 97.1 2.9
Orissa 85.3 92.4 7.6 95.3 4.7
Punjab 84.4 93.6 6.4 97.9 2.1
Rajasthan 77.5 93.4 6.6 97.8 2.2
Sikkim 73.4 95.2 4.8 89.2 10.8
Tamil Nadu 93.1 96.5 3.5 99 1
Tripura 83.3 96.2 3.8 91.4 8.6
Uttar Pradesh 74.9 93.5 6.5 97.3 2.7
Uttaranchal 91 96.3 3.7 87 13
West Bengal 79.4 93.4 6.6 94.2 5.8
Number of
children 118772 95159 69718

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TABLE 2: PERCENTAGE DISTRIBUTION OF CHILD EDUCATION STATUS AND
PERFORMANCE BY THE BACKGROUND CHARACTERISTICS
 

Educational status of child 1 Performance of child


Ever enrolled
Back ground Ever Currently Passed in Failed in the
characteristics enrolled attending Dropout the last grade last grade
Age (years)
5-11 72.3 96.4 3.6 95.8 4.2
12-14 91.9 90.9 9.1 97.4 2.6
Sex
Male 81.6 95 5 96.3 3.7
Female 79.7 94.3 5.7 96.7 3.3
Birth Order
1 83.5 95.7 4.3 96.8 3.2
2 83.4 95.1 4.9 96.5 3.5
2+ 77.3 93.7 6.3 96.3 3.7
No. of Sibling
1 80.3 96.2 3.8 96.8 3.2
2 84.4 96.8 3.2 96.8 3.2
2+ 79.5 93.9 6.1 96.4 3.6
Place
Rural 78.3 93.6 6.4 95.9 4.1
Urban 83 94.4 5.6 97.4 2.6
Religion
Hindu 83 95.1 4.9 96.5 3.5
Muslim 72.9 92.2 7.8 96.2 3.8
Others 77.9 95.4 4.6 96.6 3.4
Caste
S.T 72.4 93.8 6.2 96 4
S.C 81.3 93.1 6.9 96.3 3.7
O.B.C 79.9 94.7 5.3 96.8 3.2
Others 84.6 95.9 4.1 96.6 3.4
Note: 1All child aged 5 to 14 year.
2
Child attending school (1st grade to 7th grade) in both the years (last & present year). Last
year = “2004 – 05” & Present year = “2005 – 06.

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TABLE 3: FAMILY LEVEL VARIATION OF CHILD EDUCATION STATUS AND
PERFORMANCE OF CHILDREN
 

Performance of
Educational status of child Child
FAMILY ENVIRONMENT Among Ever
CHARACTERISTICS Ever enrolled
Passed Failed
enrolled Currently
Dropout
attending
Family living structure
Child living status
Child living with both parents 80.8 94.8 5.2 96.5 3.5
Child living with mother whose
husband stay elsewhere 77.4 95.9 4.1 96.4 3.6
Child living with single mother 82.3 90.9 9.1 96.7 3.3
Child living elsewhere 89.8 93 7 98.5 1.5
Parent survival status
Both parents alive 80.2 94.2 5.8 96.5 3.5
Either of the parent alive 79.3 89 11 96.7 3.3
Both parents not alive 69.7 85.5 14.5 98.4 1.6
Relationship with household head
Son and Daughter 80.6 93.7 6.3 96.5 3.5
Grand child 78.8 96 4 96.7 3.3
Other relation 77.5 90 10 97.1 2.9
Family educational environment
Parents education status
Both parents illiterate 67.4 89.7 10.3 95.5 4.5
Both parent literate up to secondary
level 87.1 97.1 2.9 97.1 2.9
Both parent highly educated 88.9 98.1 1.9 98 2
Either of the parent literate 81.4 93.7 6.3 95.9 4.1
Either of the parent highly educated 87.6 98 2 97.2 2.8
Family occupational environment
Parents occupation status
Both parents in primary sector 76.5 93 7 95.9 4.1
Both parents in secondary sector 78.5 92.1 7.9 96.3 3.7
Both parents in tertiary sector 86.7 96.2 3.8 97.7 2.3
Both parents not working 83.6 93 7 98.1 1.9
Either of the parent in secondary
sector 77.4 93.9 6.1 96.2 3.8
Either of the parent in tertiary sector 83.7 94.6 5.4 96 4
Either of the parent not working 81.6 95.5 4.5 96.7 3.3
Family economic environment
Wealth index

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Poorest 65.9 89.2 10.8 95.5 4.5
Poorer 75.6 91.8 8.2 95.5 4.5
Middle 81.1 93.6 6.4 96.1 3.9
Richer 85.3 95.1 4.9 97.1 2.9
Richest 88.4 97.1 2.9 97.5 2.5

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TABLE 4: RESULT OF ODDS RATIO SHOWING EFFECT OF FAMILY ENVIRONMENTAL CHARACTERISTICS ON
EDUCATIONAL STATUS AND PERFORMANCE

Ever enrolled1 Dropout2 Performance3


FAMILY ENVIRONMENT/BACKGROUND Model Model Model Model Model Model
CHARACTERISTICS 1 2 1 2 1 2
Child living status (Child living with both parents ®)
Child living with mother whose husband stay elsewhere 0.880** 0.893** 0.795** 0.838* 0.995 1.115
Child living with single mother 1.106 1.18* 1.526** 1.29* 0.785 0.8
Child living elsewhere 2.121** 1.773** 1.457 1.388 3.183* 3.038
Parent survival status (Both parents alive ®)
Both /Either of the parent alive 1.198* 1.012 1.12* 1.145 1.667* 1.565
Relationship with household head (Son and Daughter ®)
Grand child 0.66** 0.711** 0.82** 0.995 0.965 1.026
Other relation 0.792** 0.798** 1.092 1.292* 0.969 1.019
Parents education status (Both parents illiterate ®)
Both parent literate up to secondary level 2.336** 2.403** 0.349** 0.409** 1.294** 1.333**
Both parent highly educated 2.087** 2.128** 0.31** 0.455** 1.536** 1.565**
Either of the parent literate 1.849** 1.843** 0.649** 0.684** 1.049 1.042
Either of the parent highly educated 2.116** 2.155** 0.28** 0.344** 1.253* 1.293*
Parents occupation status (Both parents in primary sector ®)
Both parents in secondary sector 0.891** 0.989 1.358** 1.154* 0.982 0.94
Both parents in tertiary sector 0.861** 0.974 1.262** 0.979 1.192 1.126
Either of the parent in secondary sector 1.01 1.015 0.905 0.851* 1.064 1.002
Either of the parent in tertiary sector 0.972 1.055 1.154* 0.99 0.831* 0.827*
Both parents /Either of the parent not working 0.79** 0.871** 1.121* 0.974 0.976 0.963
Wealth index (Poorest ®)
Poorer 1.443** 1.444** 0.834** 0.761** 0.946 0.887

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Middle 1.871** 1.933** 0.756** 0.622** 1.095 0.951
Richer 2.342** 2.643** 0.612** 0.434** 1.397** 1.153
Richest 3.196** 3.54** 0.416** 0.26** 1.492** 1.179
Child’s characteristics
Age (in years) (5 -11 ®)
12-14 5.169** 2.586** 1.624**
Sex (Male ®)
Female 0.868** 1.189** 1.099**
Birth Order (1 ®)
2 0.98 1.102* 0.932
2+ 0.818** 1.095* 0.992
No. of Sibling (1 ®)
2 1.353** 0.819 1.052
2+ 1.566** 0.884 1.071
Place (Urban ®)
Rural 0.746** 1.48** 1.247**
Religion (Hindu ®)
Muslim 0.502** 1.864** 1.006
Others 0.643** 1.114 0.971
Caste (Scheduled Tribe ®)
Scheduled castes 0.678** 0.902 0.894
Other backward castes 0.896** 0.796** 1.054
Others 1.063* 0.741** 0.885
Constant 1.725** 0.968 0.126* 0.104** 20.44** 19.39**
R2 0.088 0.212 0.063 0.105 0.01 0.018

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Note : *p < 0.05 & **p < 0.01,
1
Ever enrolled among all the children aged 5-14 years.
2
Dropout among all ever enrolled children.
3
Performance, in terms of grade competition, among the children among the children who are attending school in both the current (up to
7th grade) and last years (up to 6th grade).

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
PRESCHOOL EDUCATION: HOBSON’S
CHOICE?

S.MEERA*

*Assistant Professor (International Business),


Indian Institute of Tourism and Travel Management, Gwalior.

ABSTRACT

Preschool Education has been accepted by the Indian society since quite long. In
fact it a booming business, for many ambitious housewives, entrepreneurs. Preschool
industry is estimated gross about 4004 crores and is likely to grow by more than
25% by 2012. Presently the supply is unable to meet the demand and there is a
mismatch between both leading to escalation of costs, lack of quality education etc
with respect to preschool education. This paper attempts to analyze the predominant
determinants of demand for preschool education in Secunderabad city. The
determinants of supply and reasons for mismatch are not within the ambit of the
paper. This paper has only attempted to identify those determinants of demand for
preschool education which are considered very important by parents.

KEYWORDS: Preschool education, Descriptive statistics, Demand for preschool


education.
_____________________________________________________________________________

INTRODUCTION

Preschool education generally refers to the organized and well structured preprimary education
programmes for toddlers, particularly in the age group of 2-4 years. Preschool education aims to
encourage children aged between 2 and 5 years old to learn, play, and develop. It should build on
the learning that take place in a child’s home and should also prepare the child for primary
school(www.adviceguide.com). It is more or less like a second home for a child. .Availability of
quality preprimary education will promote inclusive education and learning along with
meaningful access to school education by increasing enrolment, reducing the vulnerability of
children to failure and drop out even at secondary education stage as the grudge or monotony
associated with learning, school routine shall be minimized.

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1.1 TYPES OF PRESCHOOL PROVISION IN INDIA

Preschool provision in India ranges from a single room to a specialized set up catering to parents
with varied backgrounds and requirements. Depending on the facilities available the fees also
differ. As there is no structured curricula, regulations, evaluation systems associated with
playschools, all these parameters become the yardstick of differentiation between different
playschools. Some of them include Nursery classes or playgroups in independent schools,
Private Day nurseries cum daycare centers, College, university or workplace nurseries,
Playgroups or nursery classes as a part of Schools providing primary, secondary education,
Provision for preschool education in anganwadis and other government or self group centers. In
addition, there are some ECCE centers running under SSA and some playschools are attached to
government as well as private schools

1.2 PRESENT STATUS OF PREPRIMARY EDUCATION

.According to estimate given by seventh All India Education Survey (NCERT, 2005) there are
493,700 preprimary institutions in India, out of which 456,994 are in rural areas. These schools
serve 26.453 million children of which 12.829 million are girls according to DISE(Distant
Information System for Education) dated(2007-08).The highest percentage of preprimary
enrolment in primary schools is in MP(19.6%) and lowest of 5.0% in Bihar.(Mehta,2010). The
third round(2005-2006) of National Family Health Survey data(IIPS,2007) shows that around
56% of children in preschool are enrolled in Anganwadis(ICDS Centre) for early childhood care
and education. Among them only 31% of children are attending the centre regularly and a large
variation is also found in access to early childhood care education across the states.

The preschool market is set to thrive in India with market revenue anticipated to grow at a
CAGR of around 13.5% during 2011-2014 due to the increase in preschool enrolment as evident
from fig1 given below, which shows an increase in preschool enrolment in comparison to 1991,
both in the case of male and females.

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me 2, Issue 1 (January, 2012)                ISSSN 2249‐7
 

FIG 1 INDIC
CATING TH
HE GROWIING TREN
ND IN GER IN PRE-PR
RIMARY
EDU
UCATION SINCE 19991 TO 2007

1.3 GOOVERNME
ENT’S EFFORTS IN PROMOTI
P ING PRESC
CHOOL ED
DUCATION
N IN
INDIA

Provisionn of early childhood


c caare and education, withh special foccus on mostt vulnerablee and
disadvanntaged childrren, is one of the six Education
E foor all (EFA)) goals. Desspite no speecific
numericaal target orr deadlines for reachinng the targget group within w a fixxed time frrame,
Governm ments have been
b urged to expand access,
a imprrove quality and ensuree equity in Early
E
Childhoood Care and d Educationn (ECCE) seervice. Recoognizing thee importancce of preprim mary
schoolingg earnest atttempts has been
b made through
t eduucation policcy and programmes in India
I
and it has
h also beeen a constituutional com mmitment ass a part of Directive principles
p off the
constitutiion. The Naational Policy on Educattion, 1986(G GOI, 1986) and its plann of action (GOI,
1992) haave also emp phasized on importance of preprimaary educatioon. Howeverr, it has not been
considereed a fundammental right, nor it is beiing fully maanaged by thhe educationnal departmeent at
national or state lev
vel althoughh it is partiaally supporteed by the ongoing
o flaggship educational
programm me Sarva Shiksha AbhiyanA SSA) whichh includes a major componentt of
(S
ECCE(CREATE Ind dia Report)). Ministry of Womenn and Childd Developm ment deals with
preprimaary educatioon. The GO OI launchedd Integrated Child Devvelopment Services S (IC
CDS)

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scheme in 1975. The SSA envisages providing preschool education in convergence with the
ICDS programme.

Considering, the significance of preprimary education and its growing demand it becomes
inadvertent to analyze the determinants of demand for preprimary education.

1.4 OBJECTIVES OF STUDY

1. Understand the determinants of demand for preschool education.

2. Identify those determinants of demand for preschool education, from the assumed set of
determinants, which is commonly accepted by most of the parents of toddlers.

1.5 RESEARCH APPROACH

As the determinants of demand for preschool education can vary depending on the priorities of
parents, their income, residence, availability of schools etc., deciding on a specific set of
determinants was not an easy task. Considering all the determinants is also equally difficult.
Some of the determinants were overlapping or interconnected. Therefore around 6 of them were
considered, on the basis of secondary sources and also on the basis of interviews with parents,
which include increase in disposable income, working mothers’ preferences for daycare centers
cum playschools, nuclear families without elders to spend time with children, school readiness,
overall development of children, requirement of time and attention to younger siblings at home.
Similarly with a view to limit sample size, certain areas of Secunderabad City were considered
namely West Maredpally, East Maredpally, and Nirmal nagar, Sainikpuri.Simple Random
sampling technique was employed to choose the parents of toddlers. Respondents i.e. parents of
toddlers were asked to mark their choice on a five point Likert type scale, 1 indicating ‘Strong
agreement’,2 indicating ‘somewhat agree’, 3 – ‘neither agree nor disagree’,4 indicating
‘somewhat disagree’ and 5 indicating ‘strong disagreement’.

1.6 DETERMINANTS OF DEMAND FOR PRESCHOOL EDUCATION

From the survey, around 6 determinants were considered for the purpose of analysis. Parents of
both nursery and playschool children were considered. These determinants include school
readiness, admission to good schools for further education, overall development of children,
working mothers and nuclear families, increase in disposable income, and others.

1.6.1 SCHOOL READINESS: Preparing the children to learn, attend school, inculcating
discipline by training them to get up early in the morning, toilet training, etc are a part of school
readiness. Toddlers are taught in playschools to attend classes, mingle with teachers and other
children etc at ease so that they can pursue schooling in the right sense with an interest to learn
with joy.

1.6.2 ADMISSIONS TO SCHOOL: Getting admissions in good schools for their wards has
always been the prime concern of most of the parents. Most of them believe that seeking
admission at playschool or nursery stage is comparatively easier, especially in reputed schools.
So they believe in enrolling their children at this stage. Certain other parents are of the opinion

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that they need to impart some basic knowledge to seek admission in reputed schools, as kids face
competition in such schools, at the time of interviews etc,. Whichever be the case, parents opt for
preschooleducation.Certain schools especially in secunderabad are called a as’ LKG preparatory
schools’, and are mostly run by individuals.

1.6.3 WORKING MOTHERS AND NUCLEAR FAMILIES: Most of the families are
nuclear without elders and mothers are mostly employed. This has also led to demand for
playschools which may have daycare facilities. Parents do not have the time to mingle, play,
teach the children and they feel that playschools can fill up this vacuum. Playschools are
sometimes opted for by parents as they provide daycare facilities for toddlers of their own
schools at concessional rates. With increasing number of nuclear families and a lack of family
support, preprimary school education is gaining importance

1.6.4 OVERALL DEVELOPMENT OF CHILDREN: Research suggests that preprimary


education is very important for development of young children before they enter formal school
(Kaul,2003). It helps in cognitive development of children at the early grades of primary
education and it has strong bearing on attendance and participation of children once they enter
primary school. Preprimary education is considered to be very important for the child as it is the
first step towards entering the world of knowledge as well as promoting the all round
development of the children(Ramachandran at al.2003). Children who have been to primary
school tend to learn more rapidly through an organized curriculum, learning aides and by
interacting with other children. The main purpose of preprimary education is to prepare children
physically, emotionally, socially and mentally for formal schooling and to prevent poor
performance and early drop out. Thus it can be said that preprimary education is necessary for
all children of 3-6 years old irrespective of the socioeconomic background (Govinda and
Bandyopadhyay, 2008). Parents look forward for a holistic development of children both in
terms of physical, mental with focus on emotional and cognitive skills. Some of the playschools
in Secunderabad are even called as ‘Techno schools’, and parents rush for admissions in such
schools. Playschools are expected to be equipped by qualified and trained teachers, ayyas,
teaching and playing equipments, children friendly pedagogy and friendly, motivating
atmosphere. Parents believe that it is mandatory for their child to attend such playschools to
remain ‘ahead ‘of others in this world of competition.

1.6.5 .INCREASE IN DISPOSABLE INCOME

With both parents employed, limited commitments, parents believe in sending their children to
playschools. Increase in disposable income along with a resolve to utilize it for education, has
been a very important factor which has led to increase in demand for playschool education.

1.6.6 OTHERS

Some of the other factors which has led to increase in demand for playschool education include
availability of lesser time to spend with children, younger siblings to be taken care of etc., Even
mothers who are not employed as full timers find lesser time to spare because either they are
employed as part timers or are enhancing their qualifications etc. Some of them have younger
siblings without much age gap requiring more attention, and mostly the elder ones are naughty

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troubling the younger ones etc. Such parents seek playschools for their rescue as entry and exit
from such schools involve less complications.

1.7 FINDINGS

The respondents were asked to mark their choices on a five point Likert type scale, with 1
indicating ‘strong agreement’,2 indicating ‘somewhat agree’,3 indicating ‘neither agree nor
disagree’,4 indicating ‘disagree’,5 indicating ‘strongly disagree’. From the table(1) below, it can
be understood that ,Overall development of the child both physical, mental and cognitive terms
is the most accepted important determinant, which can be understood from the mean value
which is 1.48,that is most of the respondents have strongly agreed with overall development as
their determinant for demand of preschool education, and as the standard deviation is
.646(minimum value from the set of determinants) ,it implies that variations within the group is
very less i.e. almost the entire sample is mostly of the same opinion. The next determinant is
school readiness, as the mean value is 1.66, which means most of the respondents have either
strongly or at least somewhat agreed upon school readiness as the determinant of demand and
the standard deviation is .872 indicating less variation. The determinants which are not
considered as very important determinants include availability of lesser time to spend with
children, younger siblings to be taken care of etc.,(Mean value is 4.22 indicating strong
disagreement and standard deviation is .996, showing least variation),followed by nuclear
families(mean value is 4.08). Admissions in reputed and good schools for further education
indicates a mean value of 3.10, while standard deviation is maximum 1.607,indicating the
variations or differences in the opinion of the respondents which means not many are of the
opinion that admission into reputed schools is possible through preschool education.

TABLE( 1.7.1 )INDICATING THE DESCRIPTIVE STATISTICS

N Mean Std. Deviation


Statistic Statistic Std. Error Statistic
workmother 50 4.00 .187 1.325
nucfam 50 4.08 .169 1.192
admission 50 3.10 .227 1.607
schoolready 50 1.66 .123 .872
overalldevlp 50 1.48 .091 .646
incomeinc 50 3.62 .212 1.497
others 50 4.22 .141 .996
Valid N (list wise) 50

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LIMITATIONS

1. Differences in determinants of demand in rural and urban areas, upper, lower and middle class
society is not considered.

2. The sample size is 50, which is not very large.

3. Determinant of demand for preschool education may differ in case of school, nurseries, and
nurseries cum daycare centres. These differences are not considered in the study.

The study highlights that overall development of the child has been the most important priority
of parents of toddlers. Irrespective of the disposable income, parents enroll in schools aiming at
development of children both in terms of physical, cognitive terms. Schools specializing in
preschool business must equip themselves with qualified and trained teachers, play cum learn
teaching kits, pedagogy which makes learning fun for tiny tots. If schools attempt to do this,
definitely parents shall be willing to enroll their wards at any cost.

BIBLIOGRAPHY

DeCoster.J. (2004). Data Analysis in SPSS. Retrieved September Monday, 2011, from stat help:
http://www.stat-help.com/notes.html

GOI. (2006). Early Childhood Education In the Eleventh Five Year Plan(2007-2012). New
Delhi: Ministry Of Women and Child Development.

GOI. (1992). National Policy on Education 1986:Programme of Action 1992. New Delhi:
Ministry of Human Resource Development.

Govinda.R, M. B. (2008). Access to Elementary Education In India:Country Analytical Review.


New Delhi/Brighton: NUEPA, University of Sussex.

Kaul, V. (2002). Early Childhood Care and Education . New Delhi: Oxford University Press.

Ramachandran, V. a. (2003). Through The Lifecycle of Children: Factors that Facilitate/Impede


Successful Primary School Completion. Economic and Political Weekly , 4994-5002.

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
INTERNET ADDICTION: A CAUSATIVE
MODEL

JOSE MATHEWS*

*Senior Lecturer,
Gaeddu College of Business Studies,
Royal University of Bhutan, Bhutan.

ABSTRACT

Internet addiction, a recent clinical disorder is not well understood in its entirety as
the researches so far conducted have not unraveled the nature and dynamics of this
problem. The causative dynamics proposed in this model analyses the frequency of
internet use based on the combined effects of addictive tendency, level of computer
knowledge, the way the chance factor operates and the continuity of use of internet.
The high frequency of use and subsequent addiction is contingent upon adequate
computer knowledge, no chance factor, continuous use and high addictive tendency.
Further analysis dwells upon the elaboration of the nature of addictive tendency
which brings out the significance of the cognitive, motivational and personality
processes in drawing individuals to internet in a pathological manner.

KEYWORDS: Internet addiction Addictive tendency Cognition Motivation


Personality.
______________________________________________________________________________

INTRODUCTION

Addiction, as an uncontrollable and compulsive pattern of behavior (Lubman et al. 2004)


involves continuous and excessive use of something that gives pleasure or involvement in some
activity to which the individual is abnormally attached with. As a general rule this behavioral
disorder is characterized by excessiveness, high tolerance and abusive engagement to the point of
showing withdrawal symptoms. In the uncontrollable and the damaging use of internet,
individuals get addicted to it and that it leads to disruption in personal, family and employment
lives (Beard and Wolf 2001). Internet addiction is thus defined as an excessive use of internet
without an apparent reason or an inability to turn off the websites or a constant appetite to surf
the sites, is fast becoming a widespread behavioral disorder.

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In this paper an attempt is made to postulate a causative model based on an analysis of
the nature of internet addiction.

1.0. NATURE OF INTERNET ADDICTION: A CONCEPTUAL ANALYSIS

Being a recent topic, the study of net addiction has not made much progress in the
analysis of its nature and dynamics and it is yet to be included in the DSM as a pathological
disorder (Young 2009a). Nothing is known about the way internet use results in the formation of
dangerous habits and the way addictive potentialities (Young 2004) present in the person
influence the use of net. The lack of agreement that exists as to the exact nature and
manifestation of internet addiction forces us to pool together the available studies and bring
forward a model that best represents the reality. The available studies, which point out that
internet addiction is a psychological disorder (Cao and Su 2007), are largely peripheral and
extraneous to the core issue of the development and dynamics of this behavioral disorder.
Widyanto and Griffiths (2006) have classified the empirical research so far available into five
areas of (1) comparative studies that distinguish between internet users and excessive users (2)
investigation into vulnerable groups of internet abuse (3) studies of the psychometric properties
of excessive internet use (4) case studies that focus on excessive users and the treatment methods
(5) and finally correlational studies that examine the relationship between excessive internet use
and other behaviors. However these studies shed no light on the etiology and treatment of this
pathological disorder.

According to Beard and Wolf (2001), net addiction is said to develop when individuals
become preoccupied with it spending a large amount of time leading to disruption in family and
employment relationships that come to have a series of negative effects on the person at the
relational, occupational and social levels (Young 2009a).

Without reason and justification, the addicted individuals continue to spend hours
together in front of the computer disregarding other activities and it is also understood to be an
abusive behavior of stimulation by the use of interactive services (Armstrong et.al 2000).

In their discussion of the proposed diagnostic criteria Tao et al. (2010) has dealt with four
sets of criteria: symptom criterion, clinically significant impairment criterion, course criterion
and exclusion criterion. It appears to be a comprehensive scheme to decide upon the pathological
nature of internet use.

In trying to understand the etiological conditions of this disorder, parallels are drawn
between pathological gambling and internet addiction as both are considered to be a form of
impulse-control disorder (Young 2009b; Tsitsika et al 2010). Impulses are conative tendencies or
deeper movements or cravings that are unconscious, semi conscious or conscious in its
expressions (Banerjee 1992) and when it comes into impulse-control disorders, according to
DSM IV, it involves “repeated expression of impulsive acts---resulting in a sense of relief or
release of tension” (Sarason and Sarason 1998) that also bring about damage to the social and
financial lives of the person. As such internet addiction is to be considered as an impulsive
disorder that is to be studied in the face of the comorbidity (Shapira et al 2003).

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Disorders that fall under the dimension of impulsivity-disinhibition share the common
characteristics of absence of self-control, triggered behaviors, unrestraint patterns of behavior,
sensation –seeking and impulsivity (Sher and Slutske 2003). Zuckerman (1994) has termed these
behavioral patterns as impulsive, undersocialised and sensation seeking.

The nature of gambling addiction and internet addition overlap in the sense that more
similarities can be found out between the two mechanisms. The mechanics of internet addiction
go through a pattern similar to gambling addiction, which is made clear by the relevance of the
variables.

According to Sher and Slutske (2003) chance-skill and the continuous-discontinuous


continuums are the two dimensions frequently used to study pathological gambling. It is to be
pointed out that these variables are in the explanatory process of gambling addiction. The direct
application of the Sher and Slutske (2003) model is not possible as the nature of the addictive
process differs in the two situations. In the study of internet addiction variables skill and chance
may be separately considered since they can be represented at two different levels of influence.
The terms chance and skill in gambling imply the chance of ‘winning’ and the required ability to
play the game. In gambling a win is related to skill and/or chance. When it comes to internet use,
there is not always a win involved. Moreover in the context of internet browsing it implies the
chance of the successive appearance of contents, more specifically pictures and sounds on the
computer screen in an unfettered manner. However, chance factor enters in gaming and related
activities of some internet sites. The rationale of the use of the chance factor is that individuals
easily get disgusted and disinterested in the activity if chance plays a significant influence. On
the other hand if chance factor is eliminated, individuals continue to be active on the browser.
Thus the way the chance factor is applied in the two situations differs.

The variable “skill” may be replaced by computer knowledge or computer skills.


Prolonged browsing demands a good amount of knowledge of computer. In other words
individuals with computer knowledge may spend a lot of time with it captivated by the fancy
world.

As it is self-explanatory, the continuity of use of the net results in the development and
maintenance of addictive tendencies.

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YES                              CHANCE FACTOR               NO

ADEQUATE       CONTINUOUS 

      CONTINUITY 
OF USE 
   
 
  MODERATE USE                                     HIGH USE        
 
    
 
COMPUTER   
 
   
DISCONTINU
KNOWLEDGE    OUS 

LOW                               ADDICTIVE TENDENCY                            HIGH 

FIG.1. FREQUENCY OF INTERNET USE BASED ON A PATTERN OF VARIABLES

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In the absence of a clear biological cause that in other addictive behaviors predispose the
individual to abnormality and it is safe to assume that this disorder too arises through some
preexisting mechanisms of disordered psychological processes (Armstrong et al 2000). The
addictive tendency to internet that the individuals may show prior to internet use resides in the
personality, motivation and cognitive processes of the individual. The presence of addictive
tendencies predisposes and the use of internet precipitates an abnormality of addictive nature in
the individual. The variables discussed fall into the two categories of computer related and
individual-related. The unhindered flow of pictures and sounds on the computer screen, that is
“no chance factor” is the computer related variable and the other variables are individual related.
Each variable is partitioned categorically at two levels of influence. The resulting quadrant is
thus formed of four partitioned variables, all of which are to contribute to the development of the
addiction process. In this simplified model, the influence of the four variables can be studied
simultaneously. The frequency of internet use is thus dependent on the four levels of the four
variables depicted in Fig.1. The incorporation of the four variables in this conceptual model
exposes the complex way in which net addiction can develop.

Thus the four dichotomous variables of addictive tendency, computer knowledge, chance
factor and continuity of use determine independently and interactively the patterns of internet
addiction. In this figure, high probability of addiction exists in the right top quadrant and in the
left bottom quadrant there is zero probability of addiction. And in the other two quadrants of left
top and right bottom there is the moderate possibility of being addicted to.

Further it can be stated that the significance of chance factor and computer skill
requirements differ across the different internet activities. Simple surfing that involves simple
clicks is the contents most likely to be used by individuals with high addictive tendencies; then
comes the right bottom quadrant that demands high skill requirements and that presents low
chance factors. Complex and marathon games fall under this category. Individuals with high
addictive tendencies are likely to visit such sites. In the other two cells since the addictive
tendencies are low, the nature of the contents may determine the frequency of internet use. And
finally the unending use of internet becomes habituated and leads to the development of
addictive properties.

This model at best represents an attempt to categorize the variables that contribute to
internet addiction. Further simplification of the model results in Fig.2 which independently and
interactively identifies the four variables that contribute to internet addiction.

2.0. A CAUSATIVE MODEL

From a strand of perspectives that give different interpretations to addictive behavior (for
e.g. Wynn 1996) an all-encompassing view is to take into account the underlying processes that
result in the development of this disorder. It is known that individuals differ in their addictive
tendencies ranging from low to high. Thus individuals may be classified on the continuum of
addictive tendency which is present in the personality. That is, the idea of addictive personality is
very much in vogue in theory and practice.

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The presence of an incomplete or complete cluster of symptoms of addiction and the
tendency to be repetitive in the expression of addiction-related behavior brings forward the
behavioral disorder of addictive personality (Shaffer 2000). As elucidated in theory and practice,
the trait of addictive personality consists of a pattern of traits that include impulsivity, inadequate
self-esteem, inability to handle painful situations of life, intolerance and low frustration
tolerance, denials, extremes in action and thoughts, displacement of emotions and dishonesty in
life (Shaffer 2000; Wynn 1996).

The prevalence of addictive tendencies predispose the individual to addictive behavior


and such individuals coming into contact with the magical world of web become an easy addict,
which is to state that an interaction between addictive personality and the features of the internet
like minimum chance factor, adequate computer knowledge and continuous use produce the state
of pathological use. In other words high frequency of internet use is related to high addictive
tendency, adequate computer knowledge, no chance factor in the occurrence of scenes on the
computer screen and the continuity of use of the internet

From these findings and on the basis of the thinking that pre-existing mechanisms
prevalent in individuals interact with internet features result in the development of internet
addiction, and a model may be developed that details the causative dynamics of net addiction,
Fig.2. It becomes immediately clear that the preexisting mechanisms which are in the nature of
addictive tendencies present in the person are the major determing factors of internet addiction
and that it requires further elaboration. Identification of the nature of the addictive tendency
leads to the extrapolation of the significant psychological processes of cognition, motivation and
personality which become paramount in the discussion on internet addiction.

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High Addictive Tendency

Adequate  

Computer   

Knowledge    

                                                
 
                                      Continuous 
  uUse                             Use 

No Chance 

FIG.2. A MODEL OF INTERNET ADDICTION

By deciphering the functioning of these processes which are in relation to net addiction
the causative dynamics of this behavioral pathology are better understood. The crux of this
thinking is that by understanding the distinctive functioning of these processes, the underlying
mechanisms of net addiction can be explained.

An integrative view of personality, cognition and motivation (Phillips,et al.2003)


circumvents many of the problems faced in uncovering the nature and dynamics of behavioral
disorders. Motivation, cognition and personality traits together must easily explain the causative
dynamics than a single factor used (Code and Langan-Fox 2001). The interrelationship that
exists among these three systems, these constructs are to be intrinsically related to one another in
such a way that the influence that they exert on behavior disorders cannot be easily determined.
Such should be the complexities that characterize this interrelationship and there are
methodological hurdles in understanding the relation (Endler 2000).

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2.1. MOTIVATIONAL PROCESSES

Motivation as an internal mechanism arouses and directs the individual to goals of need
reduction and the processes can be meaningfully used to explain a number of behavioral
phenomena. In the sense of an inferred internal construct, motivation besides energizing the
individual, results in goal-directed behavior of different intensities and types of goal. The
energizing component or the source of motivation can be based on physiological and/or
psychological process, that is, motivation has an innate basis and/or a learned basis.

Enjoyment, entertainment and pleasure seeking (Martin et al 2010): The medium of


internet provides the user with a vast range of sensual pleasures and enjoyment. The virtual
world in effect takes the individual to a world that is abnormal, pulsating and electrifying to the
point of breaking all bonds and inhibitions. As a related process of the hedonic state, enjoyment,
entertainment and pleasure-seeking come to exercise a major influence on the internet behavior.

High sensation seeking (Coventry and Brown 1993): Individuals differ in their sensation
seeking behavior. And addictive internet users are the ones who deliberately and uncontrollably
indulge themselves in the sea of arousal and stimulation.

Thrill and excitement seekers (Fortune and Goodie 2010): Internet offers a rich source of
thrill and excitement and individuals who are on the path of finding satisfaction in this area of
motive become an easy addict to internet.

Finally the need for mastery and control get expressed in surfing the net. This is the need
related to exercising influence, control, mastery and expertise in varied activities of browsing.
The successful use of the knowledge of browsing in different applications provides the user with
control and expertise over the technical environment of virtual reality.

A related motivational process that has greater implications in explaining the causative
dynamics of internet addiction is the opponent process theory. According to the theory (Solomon
and Corbit 1974) a positive or negative hedonic state experienced by the individual is followed
by the opposite state of the initial reaction that reduces the severity of the initial state. Further,
the initial emotional experience stabilizes over time with continuous exposure to a stimulus and
the secondary state or the opponent state intensifies resulting in the development of high
tolerance of the stimulus (Sher and Slutske 2003). Once the initial reaction to the internet is
habituated or stabilized, there takes place, according to the opponent process theory, an
intensification of the after reaction or secondary experiences of excitement, pleasure, curiosity
and satisfaction (Ribble 1996).

The initial states of low excitement, difficulties of browsing and the unpleasantness
associated with time and cost related to daily activities are to give way to its opposite states of
easiness, pleasantness and enjoyment over time. The specific application of opponent process
theory as used by Koob and Le Moal (2001) involves the homeostatic resulting mechanism of
changing the set point. The shift from the natural homeostatic set point to an addictive allostatic
set point compels the individual to indulge in more and more abusive behavior. The raising of
the set point thus brings in addictive behavior related to deriving pleasure or reduction of pain.

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2.2. PERSONALITY VARIABLES

Personality constructs are underlying processes mechanisms that explain the functioning
of personality in a wide variety of situations. It is to be contended that knowledge about the
personalities of those who get addicted to the net may further broaden our understanding
(Orchard and Fullwood 2010). Understanding the nature of the constructs bring forward the
disordered aspects of behavior into light. In the light of the findings that show that people with
different personality types react and behave differently to this new technology (Doyle 2008)
certain key constructs from the social-cognitive view of personality (Larose et al 2001) that
attempt to identify and explain internet addiction are to be considered. That is the influence of
personal-level factors (Sussman et al 2010) becomes significant.

External locus of control as a personality construct involves the individual placing the
location of control of one’s life and activities outside one’s social and emotional self which
means that the individual is constantly controlled by external agencies and contingencies.
External locus of control goes with passivity and external influence (Lefcourt 2000) in that such
individuals easily become victims of powerful agencies and mediums. Individuals found to be
having less faith on themselves, having irrational belief in the irrestibile power of others and who
are ruled by chance factors tend to be excessive users of internet showing their addiction (Chak
and Leung 2004).

Impulsivity, deficient self-regulation (Tokunaga and Rains 2010) and a sense of impaired
control (Lindberg 2010) are to the core of internet addiction. Described in the literature as an
impulse control disorder (for e.g. Young 2009b) impulsivity and low self- regulation largely
contribute to the development of this behavioral disorder. Impulsivity and low self- regulation
can be described as the key causative variable without which addiction is difficult to develop.

Impulsive individuals by nature are less tolerant and are unable to control or screen their
thoughts and emotions. Impulsive thoughts and emotions force them to act and react without the
use of reason or common sense. Inability to delay gratification and inhibit or delay voluntary
behavior (Ho et al 1998), inability to wait, absence of time sense, quick reaction/ overreaction ,
absence of awareness of consequences are some of the important components of impulsivity.
Further, impulsivity expressed in urgency, lack of premeditation, lack of perseverance and
sensation seeking (Billieux et al 2008) force such individuals to the abuse of internet.

According to the feelings state theory of impulse-control disorder (Miller 2010)


individuals compulsively go on doing an act that produces positive feelings and thus addiction is
linked to the experience of a positive state of feelings which the individual wants to experience
again and again.

As noted impulsivity and low self- regulation result in the development of internet
addiction (Cao et.al 2007; Larose et.al 2001). Deficient self- regulation that leads to the
development of addiction is characterized by an inability to use psychological energy, inattention
and absence of relational judgment, inaccessibility of goal representations and disorganized
cognitive structures (Karoly 1993). All these implicit mechanisms function at the service of
deficient self- regulation that in other words make the person vulnerable to the abuse of internet.

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Individuals suffering from loneliness and depressive tendencies are found to be more
vulnerable to the abuse of internet so much so that they become addicted to it without which life
would be unbearable. Empirical studies report higher incidences of internet addiction among
lonely and depressive individuals compared to normals (Whang et al 2004; Hopley and Nicki
2010). Lonely and depressive individuals, in an attempt to offset these feelings, turn to this new
form of technology that provides varied sources of pleasure in a rather passive and effortless
manner. Internet provides a safe haven, cloistered setting, greater anonymity and reduced
importance of physical appearance (McKenna and Bargh 2000) to those individuals who are
otherwise unable or unwilling to seek social activities.

2.3. COGNITIVE PERSPECTIVE

Adopting a cognitive frame work goes a long way in understanding the nature and
dynamics of this pathological disorder. The cognitive perspective gives importance to the mental
processes of thoughts, images, symbols, visualizations and the way the cognitive processes are
organized and structured to interpret and deal with the world. The individual as an information
processor attends to, registers stores and uses information from internal and external
environments. The occurrence and successive manipulation of thoughts in non-directive thinking
are peripheral forms of information processing in which there is the absence of direction and
persistence of the same thoughts, whereas, directed and analytical forms of information
processings are underlined by progressive and hierarchical patterns of thinking. Similarly
images, symbolizations and visualizations also occur frequently in the cognitive processing of
the individual that leads to the process of “knowing”.

In the cognitive approach to understanding the addictive behavior, the focus is on the role
of cognitions and/ or cognitive processes in the mediation of the addictive behavior (Craighead
and Craighead 2003). In gambling studies it has been found that the player’s cognitions and the
machine interact in such a way that it fires the play and the players continue to remain in the
game which leads to the identification of dysfunctional and disordered cognitions (Nower and
Blaszczynski 2010). Dysfunctional or disordered cognitions and or cognitive processes trigger
the addictive-behavior in conscious and unconscious ways. The presence of complex memory
schemata (Oxford 2001), cognitive biases (Sher and Slutske 2003), automatic, implicit and
preconscious processing of stimuli (Mc Cusker 2001) and thinking styles (Emond and Marmurek
2010) all contribute to the development of the addictive behavior.

That is, internet provides a platform for the individual to stimulate these forms of
thoughts such that it facilitates these lower order forms of thinking. The platform opens a
gateway to these forms of thoughts that become pleasurable, satisfying and gratifying to the
individual. The variegated forms of material embedded in the world wide web stimulate and fire
the thought processes of the individual at lightning speed that the mind of the individual sinks
into a state of utter chaos, bewilderment and wonder so far not encountered by the individual.
The whirlwind opened by the internet technology opens another whirlwind of pleasure and
excitement to which the individual becomes an easy addict. This tendency of browsing is
substantiated by the two forms of automatic processing, that is preconscious automaticity and
goal-dependent automaticity (Bargh 2000). Preconscious automaticity in browsing follows the
perception of exciting and thrilling visuals and audition and goal-dependent automaticity starts

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with a particular site and thereafter, the subject keeps on opening related sites, which “cannot” be
easily terminated by the subject due to the very process of automaticity.

To sum up the three-factor causative model of personality, cognition and motivation is


an integrative approach to explaining the nature and dynamics of internet addiction. In the
mediating role, the cognitions or cognitive processes are found to be leading to the development
of addiction. The addictive cognitions that the individual comes to acquire over a period of time
show the characteristics of dragging the individual to the abuse of internet. The addictiveness of
the cognitions is such that such individuals cannot resist the excessive use of the net thereby
being mediated by the automatic and non-automatic processes.

Personality and motivational processes of individuals addicted to net show distinctive


patterns compared to non-addictives (for e.g. Cao and Su 2007). Personality deciphered in the
facets of external locus of control, deficient self-regulation, impulsiveness, loneliness,
depressiveness and low self-esteem which show a pattern such that it evolves into a behavioral
disorder of internet addictive personality that is different from the normal personality. Similarly
the specific motives of enjoyment and pleasure, sensation seeking, thrill and adventure, need for
achievement and the need for control and mastery act to arouse the individual to seek those
stimuli (internet) that reduce the deficiency needs. The opponent process theory of motivation
states that after-reaction experienced following the habituation to stimuli get stabilized and
individual continues to seek them.

3.0. CONCLUSIONS

Net addiction is consequent to stimulus features and distinctive individual functioning.


The mechanism of internet addiction is due to the influence of computer related variables and
individual related variables. The variable associated with internet is the unhindered flow of
audio-visual occurrences. The individual related variables of adequate computer knowledge,
continuous use and high addictive tendency make this modern technology vulnerable to
behavioral disorders. The distinctive psychological processes of cognition, motivation and
personality result in what can be called an internet addictive personality making those
individuals more prone to net addiction. However, more research is needed to bring to light the
underlying mechanisms of internet addiction as this disorder is proving to be a major problem.

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
TRANSFORMATION IN INDIAN BANKS
THROUGH E SERVICES -EMERGING ISSUES AND NEW
OPPORTUNITIES

DR. R.K. UPPAL*


 

*Head, Department of Economics,


D.A.V. College, Malout, Punjab.

ABSTRACT

In this paper an attempt has been made that how changing dimensions of the work
culture and economic parameters are responsible for the recent bank
transformation. On the basis of selected parameters paper finds some issues and also
new opportunities for the Indian banking industry, particularly for the public sector
banks. The paper discussed mainly two aspect of changing work culture- changing
composition of work force in banks and complaints made by the customers regarding
various activities. Female ratio in banks is increasing particularly in public sector
banks and foreign banks. The maximum complaints made in public sector banks are
related to deposits. In case of private sector banks, they are related to credit cards
and housing loans. In economic parameters, ROA has increased in all the bank
groups. But more increase is observed in new private sector banks and foreign
banks. Non-performance assets are declined in all bank groups. The paper also
discussed some emerging issues and new opportunities for the Indian banking
industry.

KEYWORDS: Work Culture, Economic Parameters, Issues and Opportunities.


______________________________________________________________________________

INTRODUCTION

The significant transformation of the banking industry in India is clearly evident from the
changes that have occurred in the financial markets, institutions, and products. While de-
regulation has opened up new vistas for banks to augment revenues, it has entailed greater
competition and consequently greater risks. Cross-border flows and entry of new products,
particularly derivative instruments have impacted significantly on the domestic banking sector,
forcing banks to adjust the product mix, as also to effect rapid changes in their processes and
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operations in order to remain competitive to the globalized environment. These developments
have facilitated greater choice for customer, who has become more discerning and demanding
compelling banks to offer a broader range of products through diverse distribution channels. The
traditional face and banks as more financial intermediaries has since altered risk management has
emerged as their defining attribute. Mohan, R, p-23 If Indian banks are to compete globally, the
time is opportune for them to institute sound and robust risk management practices.
Krishnamurthy, K.V, p-37 what we need to do is to put dreams back in the eyes and our
employees, instigate their hunger for achievements, convince them that the challenges we face
are opportunities and arouse their instincts for winning and survival. Pandey, A.S, p-72
concluded that transformation is taking place in work-culture and modern is replacing traditional
system. Mundargi,K, p-77 the most critical factor in the successful restructuring and the
organizational structure will be the support extended by the employees for the change. K,Ashok,
p-95 A product to be successful, it shall be ‘attractive’ with a process that is smoothly and
effective delivered and priced competitively. Chachadi,A.H, p-114 we have to hone our skills in
developing an appropriate culture, which is characterized by teamwork commitment and a
problem solving approach. Garg, I.K, p-121 continue change must be adopted as a culture and
appropriate institutional arrangements must be made and fascinate it. Triuedi, A.K, p-124 Indian
banks have always proved beyond doubt their adoptability to change and it would be possible for
them to mould themselves into agile and resilient organization by adopting fine-tuned customer
relationship management strategies, operations based on asset-liability and risk management
system, the required technological capabilities and developing human resources to meet the
challenges and the paradigm shift.

The Indian banking has undergone many transformations since independence. But LPG
and IT are currently transforming the Indian banking radically. The metamorphosis in the Indian
banking is taking place significantly in the areas and ownership, structure, system, process,
market place, delivery channel, products, technology and work-culture. Sahoo, B.P, p-127
Equipping bank personnel with requisite knowledge and skills for coping with the new
millennium banking is one of the biggest challenges for the banking system. The banking in our
country is no longer the same as it used to be a couple of years ago. It is neither expected to
remain the same a couple of years after. The manifestation and changes in the system is large and
vivid in all its forms; be it structural, attitudinal or qualitative.

This transformation in banking system has been possible mainly because of the following
factors.

• Liberalized monetary, economic and banking policies.

• Level playing fields for both public and private sector banks.

• High level of mechanization and increased use of IT.

• Dolon-sizing the work-force through (VRS).

• Reducing Government stake and more public participation in the equity of banks.

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• Stringent prudential norms and transparent accounting practices.

• Increased customer expectations following acute competition among banks.

• Change work-culture in banks.

Transformation is a dynamic process during all knows tenors undergo metamorphosis. It is a


fluid state with uncertain outcome. Due to its fluidity it is difficult to determine its course.
Hence, during transformation all known parameters and the earlier regime continuously change.
When the required outcome of the transformation is pre-set, as in Indian banking today,
managing transformation present both a great challenge and an opportunity.

The current transformation process in the Indian banking has many facets. They pertain to capital
restructuring, financial re-engineering, technology absorption, work-culture, and of course
human resources development. Each of these has several ingredients, presents formidable threats,
but also offers excellent opportunities.

BANK TRANSFORMATION/STAGES AND TRANSFORMATION IN INDIAN BANKS

Stage of Structure of Banks Objectives of the Nature of Technology


transformation Banks used

• Pre-Nationalized • Private control • Higher • Manual Work


of banks(before of banks profitability
1969)
• Control of Govt.
• Post-Nationalized • Limited
of banks (1969- • Social banking Computerization
90)
• Entry of foreign • E-Banks
• Economic and NPSBs
Reforms (1991- • Higher
2000) -Social Banking profitability-
to Fierce
IT Based banks Competition

• Implementation
of various • -Maximum use of IT
• Current Stage committees
report -Mobile ATMs
• -New Products
and services

- Entry in
insurance-CRM
with IT

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PROCESS OF TRANSFORMATION

Parameters of Process Implications


Transformation

• Structure • Improved and efficient


structure
• Business Re-
engineering • Improved vision for business

• Human Resources • Productivity, Profitability and


development efficiency has increased

• Work Culture • IT as the catalyst of • Innovation are taking place


Transformation

• Information Technology • International Outlook

• System, Process and • Inspire employees


procedure

• Ethos/Philosophy
• -More ethical work culture

-Vision for global economy

CHANGING DIMENSIONS OF WORK-CULTURE IN INDIAN BANKING INDUSTRY

Work-culture is a prominent factor which affects the financial performance as well as reputation
of the banks. Some internal and external factors are responsible for the changing work-culture in
Indian banks. New private sector banks and foreign banks have adopted very hi-fi culture in the
day to day work and this culture is responsible for recent bank transformation and potential
customers are shifting towards them. Many dimensions of this work-culture has become
motivation and at the same time threat for the public sector banks. They have started to follow
this culture. Young staff (particularly female),the maximum working hours, encouragement to
employees, more facilities to customers, better infra-structure, politeness, solution of the
complaints, customer care centre, customer grievance meeting, CRM etc. are some factors which
are attracting the customers. These factors are responsible for the current transformation in the
banks. Modern banking system is replacing the traditional system.

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TRANSFORMATION FROM TRADITIONAL BANKING TO MODERN BANKING

Transformation Banking Modern Banking

1. Sell product 1. Meet customer needs

2. Product research 2. Customer Research

3. Product sale & profitability target 3.Customer segment sale & profitability
target

4. Introduce new offering 4. Introduce customer specific new

every few months/years offering every week/day

5. Banking hours only 5. Any time banking

6. Personal contacts 6. Personnel and electronic contacts

7. Focus-Customer acquisition 7. Focus-deepen existing customer

Relationship

SCHEME OF THE PAPER

This paper has been divided into five sections. After the brief introduction, second section deals
with the objectives, research methodology and database. Third section deals with result and
discussion. Section IV finds some issues and opportunities, whereas section V concludes the
paper.

OBJECTIVES, RASEARCH METHODOLOGY AND DATABASE

OBJECTIVES

• To study and analyze the changing dimensions of work-culture in Indian Banking


Industry

• To analyze the changing economic environment in Indian Banking Industry in


comparison with global banking system

• To highlight the emerging issues and new opportunities for the banks

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RESEARCH METHODOLOGY

The present paper is concerned with Indian banking industry, which comprises of the following
five bank groups.

G-I SBI & its associates (08)

G-II Nationalized banks (20)

G-III Old private sector banks (20)

G-IV New private sector banks (07)

G-V Foreign banks (29)

The study is confined to the secondary data which have been collected from performance
highlights of Indian banking association and basic statistical returns of scheduled commercial
banks in India, various issues, published by RBI. This study mainly covers the period
2001 to 2007.

PARAMETERS OF STUDY

All the parameters are divided into two parts.

Part-A Changing dimension of work-culture in banks

• Changing work-force.

• Activity wise complaints in various bank groups.

• Region-wise complaints by the customers.

Part-B Economic environmental factors

• Return on assets of Indian banks vis-à-vis selected countries.

• Ratio of gross Non-Performance loans to gross advance of Indian banks vis-à-vis selected
countries.

• Provision to non-performing loans ratio-Indian banks vis-à-vis selected countries.

• Capital adequacy ratio- Indian banks vis-à-vis selected countries.

• Capital to assets ratio- Indian banks vis-à-vis selected countries.

All the economic parameters have been compared with the global ranges.

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DATABASE

• Report on Trend and Progress of Banking in India, 2006-07

• Basic Statistical Returns of SCBs in India Various Issues

RESULT AND DISCUSSION

1. (A) CHANGING DIMENSION OF WORK-CULTURE

CUSTOMER SERVICE AND FINANCIAL INCLUSION

The Reserve Bank has taken several measures in recent years aimed at providing customer
service at reasonable cost .These measures include enhancing protection disclosures, code of
ethical and grievance redressal, among others. Simultaneously the Reserve bank has also made
concerted efforts to expand the banking outreach to the wider sections the population. During
2006-07, the Reserve Bank further fine-tuned its guidelines towards financial inclusions.

Complaints received against commercial banks Located in the jurisdiction of various Banking
Ombudsman offices for the period July 1, 2006 to June 30, 2007 have been collated and
Categorized into ten broad heads, viz, deposit accounts, remittances, credit cards,
Loans/advances (general to housing loan), charges without prior notice, pension failure on
commitments made, direct selling agents, notes of coins & others. While the maximum number
of Complaints in respect of public sector banks and old private sector banks related to deposit
accounts during 2006-07, Among public sector banks, Punjab national bank received 366,Canara
Bank received 179 Bank of India,166similararly, among prominent are old private sector banks
prominent are, ING Vysya Bank 32, Feder Bank29 & Catholic Syrian Bank received 15
complaints regarding deposit accounts.

The Largest number of complaints in the case of new prints seeter banks & foreign banks
related to credit cards. Among new private sector banks, ICICI bank -1451, HDFC Bank-621 &
Axis Bank-51. In case of foreign banks China trust Commercial Bank-636, Standard Chartered
Bank-529 & ABN Amro Bank Ltd. received 520 complaints related to credit cards. Many
complaints are also related & loans & advances (general) & charges without prior notice. A
significant number of complaints also related to pension (especially for private sector banks) &
direct selling agents (especially for new private sector banks).

REGION-WISE COMPLAINTS

Region–wise, the highest numbers of complaints at banking Ombudsman Offices were received
in Mumbai (5525), which was closely followed by New Delhi (5481) & Kanpur (4321).
Guwahati (170) and Bhubaneswar (689) offices receive the least number of complaints.
Complaints received by all other offices ranged between 1000 and 3000.

The Reserve Bank has made constant efforts since 2004 to promote financial inclusion.
Accordingly, to expand the outreach of banking services to vast sections and the population,
banks, in November 2005, were advised to make available a basic “no frills” account with 1000

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or nill balance as well as charges. Following this, several banks have introduced “no-frills”
accounts. Between end- March 2006 and 2007, about 6 million new “no-frills” bank account
were opened. Public sector banks accounted for bulk of these new accounts due to their vast
branch network in rural and semi-urban areas. Financial inclusion is being viewed by these banks
as a huge business opportunities in rural and semi-urban areas in an environment and intense
competition (Report on Trend and Progress of Banking in India 2006-07, PP.112).

(B) CHANGING WORK-FORCE IN BANKS

Due to the introduction of information technology number of employees are decreasing in many
bank groups. Particularly,in public sector banks. Table (a) indicates ratio of female employees in
all bank groups. In 2007 female ratio to the total employees has increased in new private sector
banks and in the foreign banks as compared to 2002. But in this rural sector this ratio declined in
G-I and G-II bank group.

Table (b) indicates female ratio to total employees in semi-urban areas. There is a marginal
increased in this ratio in G-I, G-V. Overall this ratio has been declined.

In case of urban sector this ratio declined expect G-I. Overall this ratio increased in all bank
groups.

Overall the ratio of female to total employees has declined in G-II and G-III bank groups. But
increased in G-I and G-V bank groups.

2. Charging dimensions of economic environment in banks

After the introduction of first and second banking sector reforms, Indian banking industry has
made significant and remarkable progress in various economic indicators. Indian banking
industry which is today will not remain tomorrow.

BENCHMARKING OF THE INDIAN BANKING SECTOR

The financial soundness of the banking and financial institutions is a pre-requisite for financial
stability. The increasing degree of financial globalizes puts domestic banking and financial
institutions on international platform of competitions, thereby compelling them to meet
international standards in respect of financial soundness. The competition in the Indian banking
system has intensified with the entry of private banks and increased presence of foreign banks
and the margins have come under pressure.

In view of these developments, it is imperative that Indian banking system needs the
international benchmarks of efficiency, profitability and financial soundness.The return on total
assets (ROA) of banks defined as the ratio of net profit to total assets, is one of the most widely
used indicator of profitability. Higher ROA indicates the commercial soundness of banking
system. From the financial stability point of view, high ROA provides a levels of comfort against
potential shocks to the system i.e. banks would be able to operate without jeopardizing the
process of financial intermediation even in the wake of adverse shocks. ROA of Indian
scheduled commercial banks recorded a significant improvement in recent years to reach 0.9

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percent at end-March 2007; globally, the range varied from 0.2 percent to 4.3 percent in 2006. In
scheduled commercial banks, public sector banks and foreign banks have made remarkable
progress in this indicator in 2007 (i.e. ROA was 0.4 in 2001 which has became 0.8 in 2007 in
case of public sector banks. Similarly, in case of foreign banks it has become from 0.9 to 1.7 in
2007). In 2007 some markets are emerging like Argentina, Brazil, Mexico, Korea, and South
Africa.

COMPARATIVE SOUNDNESS OF INDIAN BANKS (GROSS NON-PERFORMING


LOANS TO GROSS ADVANCES OF INDIAN BANKING)

Quality of assets of banks is a crucial indicator of financial health of banking system and hence,
financial stability. The ratio of non-performing loans (NPLs) to total advances is a common
measure to assess the quality of assets of banks. A lower NPL ratio indicates prudent business
strategy followed by a bank. The legal framework for recovery of loans also plays an important
role in the burden of NPLs on the banking system in a country. In India, several measures taken
by the Government and the Reserve Bank have enabled SCBs to substantially reduce their level
of gross NPLs from 15.7 percent of total advances at end-March 1997 to about 11 percent at end-
March 2001 and further to 2.5 percent at end-March 2007. The global range for gross NPLs
varied between 0.2 percent and 24.7 percent in 2006.

Although, there is a declined in NPLs but it is still high in case of old private sector bank 3.1
percent. Similarly, in case of public sector bank 2.7 percent.

PROVISION TO NON-PERFORMING LOANS RATIO IN INDIAN BANKS VIS-À-VIS


SELECTED COUNTRIES

The ratio of provisioning to NPLs reflects the ability of a bank to withstand losses in asset value.
The vulnerable of a bank’s balance sheet is mitigated to the extent of non-performing loans are

covered by loan loss provisions. A low ratio of provisioning to NPLs makes the banking system
vulnerable to shocks. Indian SCBs maintained provisioning of 56.1 percent of gross NPLs at the
end-March 2007 which was comparable with global standards. Among the scheduled
commercial banks this ratio has declined in case of foreign banks from 54.8 percent to 51.1
percent and similarly, it has declined in public sector banks 58.4 percent to 56.8 percent in 2007.

CAPITAL ADEQUACY RATIO

Bank capital is used as an indicator of bank soundness because of its role as the final buffer
against losses that a bank may suffer. The minimum amount of capital that a bank should have to
meet future losses was specified differently by national regulators until the successful
harmonization of this by the Basel Accord of 1988. Recognizing that capital at a minimum must
be commensurate with the amount of risk that a bank took, a minimum capital to risk-weighted
asset ratio (CRAR) of 8 percent was specified by the Basel Committee on Banking Supervision
(BCBS). Capital requirements are now almost universally accepted and most countries use the
Basel-like risk weighted approach. This degree of harmonization has made the CRAR a useful
indicator for analyst in making both inter-bank and inter-country comparison of bank strength. In
the Indian context, the overall capital adequacy of the SCBs improved from 11.4 percent in 2001
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to 12.3 percent in 2007. Which was much above the Basel norm of 8 percent and the stipulated
norm of 9 percent for banks in India? The ratio was comparable with most emerging markets and
developed economies. The global range of CRAR in 2006 varied from 7.1 percent to 34.9
percent.

CAPITAL TO ASSET RATIO

The simple capital to asset ratio of banks indicates the extent of leveraging enjoyed by banks. A
low capital to asset ratio implies higher leverage and greater vulnerability of a bank. Globally the
ratio varied between 3.7 percent and 22.9 percent in 2006. Indian banks have lower leverage as
compared with many other countries.

EMERGING ISSUES

The ongoing analysis indicates that changing work-culture and economic environment is
responsible for recent bank transformation. The results reveals the following issues:

• Sex-wise increasing gap among various bank groups is a very serious issues in new
private sector banks and foreign banks female ratio of employees dominates and
continuously increasing.

• Level of employeement in the banking industry almost in the declined trend.

• The hi-fi culture of new private sector banks and foreign banks has become threat for the
other bank groups.

• Young generation due to the technical skill is more preferred by the private sector banks.

• Private and foreign banks are tech-know-how oriented banks. Whereas public sector
banks are partially IT oriented.

• Lack of leadership traits in public sector banks.

• Lack of organizational vision in public sector banks.

• Poor work culture in public sector banks.

• Work environment is not conducive in public sector banks.

• Non-Identification of talent in public sector banks.

• Administrative problem

• Non-team work concept.

• No system of reward and punishment in public sector banks.

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• No proper recruitment and staff re-orientation.

The above said areas need to be given proper thrust in revitalizing the work force to
encounter the challenges and to bring about the desired improvements in the system.

NEW OPPORTUNITIES FOR THE BANKS

No doubt, changing work culture and fastly changing economic environment has thrown many
challenges for the banking industry, particularly for the public sector banks vis-à-vis new
opportunities are also available for the banking industry.

• Cultivate leadership traits among the employees.

• There should be a proper organizational vision.

• Building an organizational culture.

• Creative conducive work environment.

• Identifying talent among the employees.

• Improvement in administrative structure.

• Team work should be given top-priority.

• Employees who are adding values in the banks should be honored and undisciplined
employees should be punished.

• Proper recruitment and staff orientation policy.

• The complaints of the customers should be removed immediately.

• Indian banks should expand their network in the global market.

• Along with the expansion of e-channels employment opportunities should be created.

IMPLICATIONS

The major implication of the paper is that dimensions of the work culture are rapidly changing
and new economic parameters in the banking industry are taking place which are transforming
Indian banking industry and preparing it face the global severe competition. The emerging
challenges have also given new opportunities for the banking industry, particularly for the public
sector banks.

FUTURE AREAS OF RESEARCH

A comprehensive research is required for the following areas.

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• All dimensions of work culture and Indian banking industry.

• Comparison of economic indicators of Indian banks with global markets.

• Can Indian economy grow without foreign banks.

• Business re-engineering and bank transformation.

• IT and bank transformation.

• HRM and bank transformation.

LIMITATION

The present study has left some work culture parameters (for which data is not available) and
concentrate only few economic indicators of the banks.

CONCLUSION

The paper on the basis of certain parameters of work culture and changing economic
environment in the banks conclude that recent bank transformation is due to the many factors,
but work-culture and changing economic environment is also responsible for this transformation.
Female ratio of employee is increasing a new private sector banks and in the foreign banks.
Return over assets is increasing rapidly in all bank groups, but speed is very high in case of new
private sector banks and foreign banks. Non-performance assets ratio to advances has remarkable
declined in all bank groups. Similarly, the maximum complaints are made in public sector banks.
They are related to deposits, credit cards, loans. Region-wise the maximum complaints are in
Mumbai, New Delhi and Kanpur. The increasing female employees ratio, hi-fi culture in new
private sector banks and foreign banks, lack of leadership traits in public sector banks, poor
work-culture, no organization vision, no team work, lack of identification of talent, no rewards
are the emerging major issues in the banking industry, particularly, in public sector banks. To
overcome these issues or challenges vast opportunities are also available for the banks. Public
sector banks should cultivate leadership traits among employees, organizational vision and
organizational culture, conducive work environment, identifying talent, team work and
globalization of there branches are the opportunities for the public sector banks.

REFRENCES

• Ashok, K.(2003) ‘Re-engineering Operations: Marketing Financial Services: Product,


Process and Pricing’ , IBA Bulletin ,Vol. XXV No.3 (March), pp. 95-101

• Chachadi, A.H.(2003) ‘Human Resources Development as a Strategic tool in


Organizational Transformation of Indian Banks’, IBA Bulletin ,Vol. XXV No.3
(March), pp. 114-120

• Garg, I.K.(2003) ‘Indian Banking in Transition : Some Management Challenges’, IBA


Bulletin ,Vol. XXV No.3 (March), pp. 121-123
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• Krishnamuraty, K.V(2003) ‘Human Resources Development in the Indian Public


Sector Banks’, IBA Bulletin, Vol. XXV No.3 (March), pp. 37-39

• Mohan, R.(2003) ‘Transforming Indian Banking : In Search of Better Tomorrow’ , IBA


Bulletin ,Vol. XXV No.3 (March), pp. 23-28

• Mundargi, K.(2003) ‘Re-orienting Structure : A Model for Indian Banks’, IBA Bulletin,
Vol. XXV No.3 (March), pp. 77-81

• Pandey, A.S.(2007) ‘Changing Dimension of Work-Culture In Indian Banking Sector’,


ed., Banking in the New Millenium-Issues and Challenges of Strategies, pp.69-76

• Sahoo, B.(2003) ‘Reskilling In Banks’, IBA Bulletin, Vol. XXV No.3 (March), pp.
127-130

• Trivedi, A.K.(2003) ‘Indian Banking : Managing Transformation’, IBA Bulletin, Vol.


XXV No.3 (March), pp. 124-126

TABLE 1

CUSTOMER SERVICE AND FINANCIAL INCLUSION

Nature of complaints SCB G-I G-II G-III G-IV


• Total No. of Complaints Received (1 to 10) 34,499 21,660 825 8,211 3,803
1 Deposit Account 5,578 3,664 182 1,409 323
2 Remittances 3,919 2,918 94 719 188
3 Credit Cards 7,669 3,265 54 2,163 2,187
4 Loans/Advances(a+b)
a) General 4,169 2,842 159 887 281
b) Housing loans 649 366 13 220 50
5 Charges Without prior Notice 2,527 1,434 47 868 178
6 Pension 1,056 1,039 6 8 3
7 Failure on commitments Made 1,402 1,006 41 273 82
8 Direct selling Agents 1,026 628 40 317 41
9 Notes and Coins 126 104 2 18 2
10 Others 6,378 4,394 187 1,329 468
Source: Report on Trend and Progress of Banking in India, 2006-07

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TABLE 2

REGION WISE COMPLAINTS

Sr.NO Office No. of complaints received

1. Ahmedabad 2,107

2. Bangalore 2,406

3. Bhopal 2,731

4. Bhubaneswar 689

5. Chandigarh 2,006

6. Chennai 2,387

7. Guwahati 170

8. Hyderabad 2,767

9. Jaipur 2,976

10. Kanpur 4,321

11. Kolkata 2,011

12. Mumbai 5,525

13. New Delhi 5,481

14. Patna 1,481

15. Thiruvananthapuram 1,580

Total 38,638

Source: Same as Table 1

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TABLE 3(A)

FEMALE EMPLOYEES RATIO IN RURAL SECTOR

Bank Group 2002 2004 2007 Percentage

G-I 6.58 5.70 6.05 91.94

G-II 7.24 6.33 5.92 81.76

G-III -- -- -- --

G-IV 1.80 1.89 1.91 106.11

G-V 7.64 8.15 8.19 107.19

All 5.73 5.12 4.97 86.73

Source: Basic Statistical Returns of SCBs in India Various Issues

TABLE 3(B)

FEMALE EMPLOYEE RATIO IN SEMI-URBAN SECTOR

Bank Group 2002 2004 2007 Percentage

G-I 10.84 10.84 10.99 101.38

G-II 11.95 11.89 10.93 91.46

G-III -- -- -- --

G-IV 7.39 7.70 6.71 90.79

G-V 16.71 15.69 16.86 100.89

All 11.60 11.49 11.17 96.29

Source: Same as Table 3(a)

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TABLE 3(C)

FEMALE EMPLOYEE RATIO IN URBAN SECTOR

Bank Group 2002 2004 2007 Percentage

G-I 15.00 16.09 16.43 109.53

G-II 18.01 18.19 17.97 99.77

G-III 33.28 33.15 29.24 87.86

G-IV 12.73 13.84 12.03 94.50

G-V 24.13 23.63 24.12 99.95

All 17.94 18.46 18.70 104.23

Source: Same as Table 3(a)

TABLE 3(D)

FEMALE EMPLOYEE RATIO ALL BANK GROUPS

Bank Group 2002 2004 2007 Percentage

G-I 12.44 12.80 13.62 109.48

G-II 14.93 14.82 14.68 98.32

G-III 33.25 33.15 29.22 87.87

G-IV 3.93 4.22 4.01 102.03

G-V 20.63 20.60 22.07 106.98

All 14.03 14.16 14.75 105.13

Source: Same as Table 3(a)

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TABLE 4

BENCHMARKING OF THE INDIAN BANKING SECTOR

PER CENT

Bank Group/Country As at end-March


2001 2007
India
Public sector banks 0.4 0.8
Private banks 0.7 0.9
Old private banks 0.6 0.7
New private banks 0.8 0.9
Foreign banks 0.9 1.7
Scheduled Commercial Banks 0.5 0.9
Emerging Markets
Argentina 0.0 2.1
Brazil -0.1 2.1
Mexico 0.8 3.2
Korea 0.7 1.1
South Africa 0.8 1.4
Developed Countries
US 1.1 1.2
UK 0.5 0.5
Japan -0.6 0.4
Canada 0.7 1.0
Australia 1.3 1.8
Global range for 2006 [0.2(Tunisia) to 4.3 (Saudi Arabia and Ghana]
Source: Same as Table 1

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TABLE 5

GROSS NON-PERFORMING LOANS TO GROSS ADVANCES OF INDIAN BANKS

PER CENT

Bank Group/Country As at end-March


2001 2007
India
Public sector banks 12.4 2.7
Private banks 8.4 2.2
1 Old private banks 10.9 3.1
2 New private banks 5.1 1.9
Foreign banks 6.8 1.8
Scheduled Commercial Banks 11.4 2.5
Emerging Markets
Argentina 13.1 3.2
Brazil 5.6 4.0
Mexico 5.1 2.2
Korea 3.4 0.8
South Africa 3.1 1.1
Developed Countries
US 1.3 0.8
UK 2.6 0.9
Japan 8.4 2.5
Canada 1.5 0.4
Australia 0.6 0.2
Global range for 2006 [0.2 (Estonia, Luxembourg and Australia) to 24.7(Egypt)]
Source : Same as Table 1

TABLE 6

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PROVISION TO NON-PERFORMING LOANS RATIO INDIAN BANKS

PER CENT

Bank Group/Country As at end-March


2001 2007
India
Public sector banks 58.4 56.8
Private banks
1 Old private banks 47.0 66.0
2 New private banks 40.6 49.1
Foreign banks 54.8 51.1
Scheduled Commercial Banks 55.9 56.1
Emerging Markets
Argentina 102.9 132.3
Brazil 177.5 153.0
Mexico 201.8 194.7
Korea 104.5 177.7
South Africa 61.3 64.3
Developed Countries
US 168.1 129.0
UK 64.5 56.1
Japan 26.8 30.3
Canada 47.7 55.3
Australia 182.9 204.5
Global range for 2006: [23.1 Ukraine to 229.1 (Venezuela)]
Source: Same as Table 1

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TABLE 7

CAPITAL ADEQUACY RATIO-INDIAN BANKS

PER CENT

Bank Group/Country As at end-March


2001 2007
India
Public sector banks 11.2 12.4
Private banks
1 Old private banks 11.9 12.1
2 New private banks 11.5 12.0
Foreign banks 12.6 12.4
Scheduled Commercial Banks 11.4 12.3
Emerging Markets
Argentina - -
Brazil 14.8 18.5
Mexico 13.9 16.1
Korea 11.7 13.0
South Africa 11.4 12.7
Developed Countries
US 12.9 13.0
UK 13.2 12.9
Japan 10.8 13.1
Canada 12.3 12.4
Australia 10.4 10.4
Global range for 2006: [7.1 Sweden to 34.9 (Armenia)]
Source : Same as Table 1

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TABLE 8

CAPITAL TO ASSET RATIO-INDIAN BANKS

PER CENT

Bank Group/Country As at end-March


2001 2007
India
Public sector banks 4.8 5.8
Private banks 5.4 6.8
1 Old private banks 5.4 6.7
2 New private banks 5.5 6.8
Foreign banks 8.8 11.9
Scheduled Commercial Banks 5.2 6.3
Emerging Markets
Argentina 11.9 13.7
Brazil 8.9 9.4
Mexico 9.4 13.2
Korea 7.2 9.5
South Africa 9.0 7.8
Developed Countries
US 9.0 10.6
UK 9.7 8.9
Japan 3.9 5.3
Canada 4.6 5.6
Australia 5.3 4.9
Global range for 2006: [4.0(Bangladesh, Netherlands) to 22.0 (Armenia)]
Source: Same as Table 1

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES

LEGAL ASPECTS OF FINANCING SOCIAL SECURITY SCHEMES IN


INDIA

DR ANITA TANEJA*

*Associate Professor, Department of Law,


Kurukshetra University, Kurukshetra.

ABSTRACT
 
In ancient India the family system had been so secure that the need of social security
schemes was never felt. But with the disintegration of joint families social security
was required in case of sickness, disablement or death of the earning member. The
social security legislations in India derive their strength and spirit from the Directive
Principles of the State Policy as contained in the Constitution of India. These
provide for mandatory social security benefits either solely at the cost of the
employers or on the basis of joint contribution of the employers and the employees.
Various legislations and schemes have been formulated in India in this regard.
Funding of such schemes is very important issue that needs attention. So the paper
focuses on evaluation of such schemes; the methods of their funding and the
problems and solutions attached to such methods.
______________________________________________________________________________

INTRODUCTION

India has always had a Joint Family system that took care of the social security needs of all the
members provided it had access/ownership of material assets like land. In keeping with its
cultural traditions, family members and relatives have always discharged a sense of shared
responsibility towards one another. To the extent that the family has resources to draw upon, this
is often the best relief for the special needs and care required by the aged and those in poor
health.

However, with increasing migration, urbanization and demographic changes there has been a
decrease in large family units. This is where the formal system of social security gains
importance. However, information and awareness are the vital factors in widening the coverage
of Social Security schemes.

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The concept of ‘social security’ in a welfare state like India has assumed great importance in the
recent years. Today social insurance has spread throughout the world. It is an integral feature of
social democracy. Social Security measures provide an element of stability and protection in the
midst of the stress and strains of modern life. The right of social security is one of the
fundamental human rights as provided in the Universal Declaration of Human Rights adopted by
the General Assembly of the United National on Dec. 10, 1948. It lays down:

“Everyone has the right to a standard of living adequate for the health and well-being of himself
and of his family, including food, clothing, housing and medical care and necessary social
services, and the right to security in the event of unemployment, sickness, disability, widowhood,
old age or other lack of livelihood in circumstances beyond his control.”

Many authors have defined social security by many ways. For our understanding, we consider
the social security as the continuous economic support to a human being for his or her social well
being- at least in the evening years of his/her life. It is therefore necessary to link up traditional
social security policies and economic policies in general. Getubig for instance defines social
security for the developing countries as

“Any kind of collective measure or activities designed to ensure that members of the society
meet their basic needs. As well as being protected from contingencies to enable them to maintain
a standard of living consistent with social norms”

Dreze and Sen distinguish two aspects of social security, which they define as the use of social
means to prevent deprivation and vulnerability to deprivation. The focus of the social security is
to enhance and protect people’s capabilities to be adequately nourished, to be comfortably
clothed.

The Social Security schemes in India cover only a small segment of the organized work force,
which may be defined as workers who are having a direct regular employer-employee
relationship within an organization. In India around 400 million people are in working force and
only 7% workforce is in organized sector.

Most social protection policies in developing countries will almost certainly be concerned with
reducing vulnerability and unacceptable levels of deprivation. The extent of poverty and
destitution in most developing countries would, however, make typical post-shock social security
benefits of the type implemented in industrialised countries too costly to put into practice in poor
economies. The role of social security policies in developing countries must, consequently, be
extended not only to that of a security, but, more importantly, to prevention against increases in
deprivation and the promotion of better chances of individual development.

The sources of social security and welfare are different in different countries. Some rely
exclusively on tax financing, whilst other rely on contribution paid by self-employed, employees
and employers, often with the major burden being borne by the employers.

Financing by contribution is attacked in social terms as being an unfair burden on low earners,
creating or exacerbating poverty among the low paid. Where general tax financing has been
adopted, the complaint is about the intolerable levels of taxation and its adverse social and
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economic effects. To find out truth behind all these complaints it is necessary to study methods
of financing social security in detail.

METHOD OF FINANCING SOCIAL SECURITY AND WELFARE SCHEMES:

A. CONTRIBUTION BY WORKERS

Workers contribution and also, largely, the contribution of employers on their behalf are deferred
wages. Present consumption is reduced so that future consumption is a time of greater need may
be increased. Vital decision in planning social insurance is the amount, which working people
and other beneficiaries can afford to contribute. This is determined largely by level of wages.

B. CONTRIBUTION BY EMPLOYERS

Contribution by employers differs from those by the state. These contributions increase labour
cost of production, which is closely related to wages and employment. They are in effect, a tax
on employment. This burden of contribution is shifted wholly or partly to consumers by a rise of
the product or to the workers when wages are adjusted. The contributions are so closely related
to the wages that if they are paid wholly or largely by employers, wages will be correspondingly
lower and if they are paid wholly or largely by workers, rates will be higher. Joint contribution of
fairly equal amounts by employers and workers frequently have psychological advantages and
are usually preferable to systems which apart from state contributions are financed largely or
entirely be employers alone or by working people alone. Employers’ contributions can be
supported because of their value in promoting better industrial relations and greater stability of
labour.

C. CONTRIBUTION BY GOVERNMENT

Government is contributing, makes the scheme, more acceptable at all time of their introduction.
Government contributions are especially advantageous in the countries where wages are low and
the income disparities are wider. The idea behind these contributions is that as the community as
a whole gains substantial advantages from social insurance, it is reasonable that it should make
contribution towards costs.

In the British National Health services, the state pays about 90% of the costs, which it self
includes a state contribution.

Mode of distribution of contributions towards the main types of social security prevalent in
various countries:

A. SICKNESS AND MATERNITY

The sickness and maternity insurance is financed jointly by employer and worker’s contribution
in a considerable number of countries including Austria, Finland, France the federation republic
of Germany, Portugal, Turkey, Burma and Venezuela. In other, tripartite system of finance is
used. In Denmark, Switzerland, employers do not contribute.

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B. OLD AGE PENSION SCHEMES

This type of schemes are financed by the tripartite method in most countries though in Canada,
Ireland and Denmark, for example, they are non- contributory and in the United States they are
financed from the joint contributions of employers and work people. In Norway and Sweden as
in Canada the funds needed for old age pensions are obtained by special taxes together with
subsidies from general revenues. In British system of National Insurance which covers sickness
and unemployment benefits old age and survivor’s pensions and nationality and funeral
payments, the cost to be borne by the tripartite method. The employer’s contributions are
somewhat small than the workers.

1. PROVIDENT FUND CONTRIBUTION

The main feature of provident fund is that they are individual. A separate account is kept for each
person. A retiree may choose a joint annuity to be paid to himself, his wife or make provision for
animates to be paid to him for at least a specified number of years according to the life
expectancy for the remaining value to be paid in his estate. In this system there is no pooling of
finances. Benefits are in proportion to contributions, except n so far as the government may
subsidies. The only difficulty in this system as in all funding system is that the purchasing power
of money falls during periods of inflation.

2. POOLED CONTRIBUTION

Under this method the funds are pooled in the sense that some people receive more than in
proportion to their contributions and other less because of individual variations in expectations of
life. This system involves a transfer of resources from the higher paid to the lower paid with the
object of promoting greater social equality.

3. SPECIAL OR EARMARKED TAXES

This system such as used in Canada to finance federal pension can be used effectively where the
whole or a large part of the population is covered and the wealth is distributed fairly. These taxes
are preferable because they are free from political pressure to increase the benefits because of the
knowledge that taxes will also be increased.

4. GENERAL TAXES

In this system the burden can be distributed equitably. The cost of benefits is paid generally in
limited together with the expenditure of defence education and other activities under taken by the
government.

UNEMPLOYMENT BENEFITS

The financing of unemployed insurance is based on tripartite system in most of the countries. In
Canada the federal government contributed as amount equal to 20% of the point contributions of
employer and employees and it also bears the costs of administration. In some countries,

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however, employers only contribute the cost for example in United States and Italy. In Finland
and Sweden only work people and the public authorizes contribute.

WAYS OF APPLYING RESOURCES ON SOCIAL SECURITY AND WELFARE


SCHEMES:

Financing of social security is the most important of all government schemes. Social security
benefits may be financed in one of the several ways or by a combination of two. One may is
paying out of the ordinary revenues from taxation each year, and some reserves may be built up
to meet minor fluctuation in the annual cost of benefits so as to avoid the necessity for
corresponding yearly changes in taxation. The beneficiaries make no special contribution though
they pay some part as taxpayers. This method is used in the financing of family allowances in
Britain and for public assistance in all countries.

PAY-AS-YOU-GO METHOD

The pay-as-you-go system is the simplest way of obtaining revenues for social security purposes.
Each year estimates would be added to the estimates of all the other items of state expenditure
and the necessary funds would be obtained through the ordinary channels of taxation at rates
fixed each year to meet the estimated total expenditure of that year. No special machinery of
collection would be necessary and on records required to relate the amount paid in taxes by each
person to the social security benefits he or she would receive. The Canadian old age pensions
which are paid at a flat rate to all the persons above 70 are financed by pay-as-you-go method.
Some would argue that social security could have more favourable effects on economics if pay-
as-you-go systems were abandoned the method of full capital funding were reintroduced. Thus,
social security would contribute to savings which could be channeled directly or indirectly in to
real investment that in turn would promote the economic growth needed to meet the likely
increased cost.

FINANCING BY SPECIAL CONTRIBUTION

Another method is to collect money by special contributions and to keep of each individual’s
contribution as a basis for the benefits which will be paid, but to merge the receipts in the general
revenue of the government and to use the general revenue to meet both general expenditure and
the social security benefits due each year. No social security fund is accumulated either from
taxes or from contributions made by employers, workers and self-employed persons, offer
supplemented from state funds. The proceeds are accumulated is special reserves and invested by
the government. Records are kept of the individual contributions, which give title to benefits, and
the benefits are paid as they fall due. It is essential to keep records if individual benefits vary in
amount and duration according to contribution paid by each person.

PRESENT SAVINGS CREATE FUTURE RESOURCES

As it seems fair and reasonable that the workers of today should contribute now towards their
maintenance after they retire, it is easy to require them to do so and the psychological attitude of
the population is also important in financing social security expenditure. The main problem
however is establishing the relation between saving now and consuming in future. The people
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who are now saving for the years of their retirement(whether through private insurance or
government, pension scheme) will, when they are aged, have to depend on the people who are
then or working age to produce food, clothing, fuel or other things.

Here, two questions which come to picture are

a. What is the relation between the money now set aside and the future cost of the services,
which will be needed to provide for beneficiaries?

b. In what ways can money which is now being saved for the future be used to provide the basis
for producing the goods needed after twenty or thirty years hence by people who have ceased
to be produces?

This is clear that those who now pay taxes or make contributions expect to receive adequate
protection in future, sufficient money to buy equivalent quantities of goods and services together
with an addition in form of a fair rate of interest on the money during the period of waiting,
because of long term inflations the purchasing power of much past saving has fallen seriously.
When the contributions are made, may be years ago, the money unit has a higher purchasing
power than that in, which the benefits are paid, Yet in the mean time the productivity of the
community may probably increase and bigger resources are available to provide for the
beneficiaries. In these circumstances the only fair course to take is to raise the benefits are least
enough to allow for the increased cost of living she payment of dearness allowance is one such
method in such circumstances the pay-as-you-go system of financing the social security schemes
seems mo appropriate.

Taking all these points in consideration, it is found that these are none of the compelling
economic arguments for choosing any particular form of financing statutory social security.

FUNDING OF SOCIAL SECURITY IN INDIA

In India, it is surprising that in spite of the implementation of various schemes of social security
analysis is confined to specific aspects, but rarely do analyses examine state government
expenditure, within the overall framework of social security. The reason for this is partly non-
availability of requisite data on social security in its broader connotation.

(a) METHOD OF FINANCING THE SOCIAL SECURITY SCHEMES

Methods mainly adopted to financed the social scheme are as under

CONTRIBUTORY METHOD: the contributory method is mainly applied in employment


security. Under these schemes contributions are made by employers and employees.
Accordingly, these contribution is of the government as in the main legislation in this context i.e.
Employee’s State Insurance Act.

In some cases, the major proportion is paid by employers and employees. Employees have to pay
a smaller part in such contribution. In others, contributions are paid at as equal rate by the

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employers as well as employees. In some schemes some part is also paid by government is case
of certain contingencies only.

Taxation: as mentioned earlier, taxation plays very important role in financing social security
schemes. Some is the case in India also. But in India special taxes have not been recognized so
far. It is only through the general taxes that the social security schemes are finances.

In India income disparities are very grave. In these circumstances direct taxes are more helpful is
mobilizing the resources for the richest to poorest. Here, it is worth mentioning that according to
international trends countries providing social security have relatively high taxes. GDP ratios are
around 30% or more. But in India it is just 21% which may be raised to meet the increasing
needs of the social security beneficiaries.

After putting aside the employment social security schemes, which included sickness benefits,
medical benefits in the case of disablement whether temporary or permanent maternity benefits,
etc. the government is paying all other benefits, which come under social security. Some of the
matters like unemployment are the responsibility of center and some others like health, old age
and widow pension are of states.

MAIN BENEFITS WHICH ARE BEING PROVIDED IN INDIA WITH THE METHOD
OF FINANCING

A. FOOD AND NUTRITION SECURITY

In the food and nutrition security it is the state which is totally responsibility, state has launched
various PDS, TPDS methods to subsidize the government has increased the allocation per
family and has reduced the prices for both below and above the poverty line families (APL,
BPL).

B. OLD AGE PENSIONS

Then the government pays a significant amount under old age pension schemes. These types of
schemes are financed mainly at state level and form the states revenues which are revived from
miscellaneous sources. These benefits are based on means test.

C. RETIRAL BENEFIT

The retrial benefit paid to the employees are the contribution from employee’s own wages
during working years and the part by the employer and in certain schemes government also pays
a part also.

D. WIDOW PENSION

Then widow pensions are also paid in some states. These pensions are also paid from the
general taxes or in some states the state’s welfare funds.

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E. COMPENSATION IN CASE OF NATURAL CALAMITIES ETC

The government also pays compensation for death in riots natural calamities or accident etc.
These kinds of benefits are uncertain in their occurrence. So they are financed from government
expenditure received from welfare fund or miscellaneous sources.

PROBLEMS WITH SOCIAL SECURITY ADMINISTRATION IN INDIA

First, India’s social security system is overwhelmingly welfare-oriented. So Economic and


Financial constraints are there.

Secondly, the welfare-orientation and relative neglect of administrative and civil service reform
in India has meant that there is substantial room for much greater professionalism in the design,
governance and organizational structures.

Thirdly, there has been a marked dualism in the provision of social security benefits. This
dualism is most evident in the relatively secure and generous retirement benefits of the civil
servants without any contributions by them and meager funds for public assistance schemes for
the elderly poor on the other.

Fourthly, each component of India’s social security system has developed separately, without
any agency responsible for a system-wide perspective.

RECOMMENDATIONS

1. In the context of the globalisation and the ongoing economic reforms, it is necessary to
have a National Policy on the provision of social security to different group of workers in
different sectors.

2. The delivery of services in social security instrument in Provident Fund and ESIS should
be improved by adopting information and communication technology in the overall
interest of the workers. It would help in reducing harassment to the workers and reduce
corruption in the organization.

3. Provident Fund Scheme and Employees State Insurance Scheme should be extended to
the workers in the unorganised sector in a substantial way by putting in place innovative
approaches that would cater to the requirements of the workers in local conditions.

4. Social Security cover for the unorganised sector which can take care of medical care,
accident benefits and old age pension should receive priority attention. This Sector
Comprises of near 92% work force of the country. It is essential to enhance the coverage
under national social assistance programmes providing old age pension, maternity and
other benefits to the workers in the unorganised sector.

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CONCLUSION

From the above said factors it is evident that in India so many social security schemes have been
launched for organized sector and also for unorganized sector though the schemes for organized
sector are less effective. These schemes give a very colored picture but their effect if seen
socially is very insignificant. No doubt, the government has done, and is doing much for
providing social security benefits to the people but still the outcome is not satisfactory. The
reason is obvious the rapid growth of population. Due to population growth and benefits can’t
reach the people the extent to which they aimed at. Secondly, as observed earlier, the
administration of these schemes is very defective. So there is duplication and wastage of the
resources.

REFERENCES

1. Article 25, Universal Declaration of Human Rights

2. D Rajasekhar, “Social Security in India: Status, Issues and Ways Forward”, Presentation
in International Conference on Social Security Systems in Developing and Newly
Industrialised Countries: Utopiaor Strategy of Keeping Peace and Fighting Poverty,
Germany (2007)

3. http://labour.nic.in/ss/overview.html

4. Into Twenty First Century: The Development of Social Security, international Labour
Organization Geneva, 86(2000)

5. J Henry Richardson, Economic and Financial Aspects of Social Security at 62(1987)

6. Mukul G. Asher, “Reforming India’s Social Security System” (2004)


www.iief.com/Research/mukulasher1.pdf

7. P.Madhava Rao, “Social Security for the Unorganized in India – An Approach Paper”
(2002) www.globalaging.org/health/world/socindia.pdf

8. Patricia Justino, “Social Security in Developing Countries: Myth or Necessity? Evidence


from India” Poverty Research Unit at Sussex, University of Sussex, September 2003,
Website: http://www.sussex.ac.uk/users/pru

9. Report of the National Commission on Labour(1969) p. 162

10. Report of The Working Group on Social Security For The Tenth Five Year Plan (2002-
2007),Government of India, Planning Commission

11. Social Security: Annual Report 2006-07


labour.nic.in/annrep/annrep0607/english/Chapter06.pdf

12. Sydney H. Ash, Social Security and Related Welfare Programmes, pp. 15-16

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A Peer Reviewed International Journal of Asian
Research Consortium

AJRSH:
ASIAN JOURNAL OF
RESEARCH IN SOCIAL
SCIENCE & HUMANITIES
AGRO BASED INDUSTRIES - A PANACEA
FOR INDIAN AGRICULTURE

DR. MANOJ SHARMA*; DR. RAJIV KHOSLA**

*Professor of Economics,
University Business School, Panjab University, Chandigarh.
**Associate Professor & Head,
Chandigarh Business School, Gharuan, Mohali.

ABSTRACT

India is basically an agrarian economy but the performance of agriculture sector is


not very remarkable due to obvious reasons like seasonal nature, low productivity
etc. Though agriculture caters to the needs of more than half a billion population of
the country (in terms of employment), yet the productivity of crops is low in relation
to other countries. At this juncture, agro industries are seen as an important link
between agriculture and industry which can solve inherent problems prevailing in
the Indian agriculture. However, the development of agro based industries in an
unreasonable manner will not offer any solution to the problem. This study is carried
out to find out the proximity of different agro based industries to different states in
the country.
______________________________________________________________________________

INTRODUCTION

SECTION I

CRISIS IN INDIAN AGRICULTURE

Indian agriculture is beleaguered by a number of problems. A severe crisis emerges from the
unsustainable growth in many agricultural products. Being seasonal in nature, the commodities
do not find sufficient marketing opportunities which lead to their slack demand in season and
insufficient off take of the product during lean season. For example, the bumper crop of potatoes,
onions etc. had led to a distress sale in the past. Thus, Indian agriculture is a typical application
of the Cobweb cycle of production. It has demonstrated that high crop output lead to a reduction
in prices which in turn leads to a decrease in the level of output in the next cycle that further
affects the prices and output in yet another cycle. Not only this, agricultural problems also ranges

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from additional pressure on land, lack of irrigation facilities, dearth of investment in research and
development in agriculture, inefficient Public Distribution System to lack of credit etc. As a
result, where on demand side, government is providing a superficial remedy like importing
foodgrains viz. wheat and pulses etc. (when we are talking of another green revolution), on the
supply side, there is an unending chain of suicides by farmers

TABLE 1

COMPOUND GROWTH RATES OF AREA, PRODUCTION AND YIELD

(AS PER CENT PER ANNUM WITH BASE TE 1981-82=100)

Crop 1980-81 to 1989-90 1990-91 to 1999-2000 2000-01 to 2009-10

Rice Area 0.4 0.7 -0.03

Production 3.6 2.0 1.6

Yield 3.2 1.3 1.6

Wheat Area 0.5 1.7 1.2

Production 3.6 3.6 1.9

Yield 3.1 1.8 0.7

Sugarcane Area 1.4 -0.1 0.8

Production 2.7 2.7 0.9

Yield 1.2 1.1 0.1

Oilseeds Area 2.5 0.2 2.3

Production 5.4 1.4 4.8

Yield 2.5 1.4 3.8

Source: Department of Agriculture & Cooperation

in different parts of the country. Even the green revolution states are not becoming the face
savior of the country. Infact, where in other parts of country agricultural yields remained
stagnant, in green revolution area agricultural yields are actually declining
(http://www.preservearticles.com/201106067517/crisis-of-indian-agriculture.html as seen on 15
Sept, 2011). This is attributed to over exploitation of land and water. Such declining yields have
further aggravated the problems of mounting farmers’ debt. An evidence of declining or stagnant
growth in some of the crops can be seen from table 1.

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It is clear from the table that the last decade has seen a declining or stagnating growth in the
major crops. But this stagnation assumes more significance, when we know that there is an
increasing population pressure coupled with the additional purchasing power of the people and
increasing per capita income in the country. This clearly reflects the bottlenecks on the supply
side while increased demand on the other.

The industrial and services sectors are inextricably related with the fortunes of agriculture due to
their forward and backward linkages. In context of linkages of agriculture sector with industrial
and tertiary sectors, it has been observed that both the forward and backward linkages have gone
down in the recent past (Khosla et al, 2010). The forward linkages between the agriculture and
the non-agriculture sector which were to the extent of 65 percent in the year 1998-99 went down
to 53 percent in 2003-04. Only the subsectors rubber, tea, coffee, tobacco, jute, cotton and
forestry of agriculture sector exhibited a reasonably strong forward linkage with the non-
agriculture sector. Food grains, animal husbandry and other crops sub-sectors of the agriculture
sector were not having strong forward linkages with the non- agriculture sector as a major
percentage of the produce was being consumed by the sector itself. Similarly, in case of
backward linkages, the extent of dependence of the agriculture sector on the non-agriculture
sectors which was 51 percent in the year 1998-99, decreased to 45 percent in the year 2003-04. It
means that to a large extent, agriculture is catering to its input needs itself. The promotion of
agro based industries can play a significant role in developing strong linkages of agriculture with
industry and other sectors. Different authors have given rationale for the development of agro
based industries which are discussed in the next section.

Specifically, this study intends to highlight one very important dimension of agricultural growth
in terms of agro based industries. The growth of agro based industries can be seen as a panacea
of reviving the agricultural sector. But the haphazard growth of agro industries will not serve any
purpose. Hence, we have tried to analyze the productivity and growth of agro based industries
across Indian states to find out the best suited industries and states for mitigating agricultural
crisis.

SECTION II

REVIEW OF LITERATURE

Sutcliffe (1971) argued that for the vast majority, if not for all countries, high levels of income
cannot be reached without industrialization. According to Sutcliffe, country may be regarded as
industrialized if at least 25 percent of its GDP originates from the industrial sector of which at
least 60 percent is from manufacturing, and which has at least 10 percent of its population
employed in manufacturing. Growth pattern of developed countries reveal one thing in common.
The agriculture sector was developed first rather than industrial or tertiary sectors.

Ahluwalia and Rangarajan (1987) are of the opinion that of the various form of linkages
between the agricultural and industrial sectors, principal linkages between the two sectors can be
traced through the role of agriculture as (i) a supplier of wage goods (food) to the industrial
sector, (ii) a provider of raw material for the agro-based industries, and (iii) a generator of
agricultural incomes which create final demand for outputs of the industrial sector. The first two

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constitute supply side linkages while the third one is the demand side linkage between
agriculture and industry. As an economy progresses, the inter-sectoral linkages between
agricultural and non agricultural sectors get strengthened.

Mahadevan (2003) observed that the effects of globalization process since early 1990s on
the productive efficiency enhanced value added activities in agriculture through agro-processing
and exports of agricultural and agro-based products. These activities in turn increased income
and employment in the industrial processing sector. Thus, globalizing agriculture had the
potential to transform subsistence agriculture to commercialized agriculture and to improve the
living conditions of the rural community.

Ministry of Food-Processing Industries (2006) observed that food-processing has become an


important sub-sector of agro-based industries. Food habits, ready-to-cook and ready-to-eat life-
style have given a new dimension to the food-processing industry. Domestic consumption of
processed food is low but is fast picking up with rising income levels and changing consumer
behavior due to economic growth and changing life styles. Moreover, Indian processed food
industry has competitive advantages over other countries due to cheap workforce, government
initiatives (tax holidays) and abundant availability of raw materials.

Kachru (2006) in his study stated that the estimated post production losses in food commodities
are to the extent of Rs. 75,000 - Rs. 100,000 Crore per annum. But, round the year availability of
raw materials, social acceptability of agro-processing as an important area, support from the
central government and vast domestic market are the major strengths for the Indian agro-
processing industries.
.
The 2008 World Bank World Development Report (World Bank, 2007) states that in
developing economies that are a hub of rural poor, rising inequalities lead to the unfulfilled
expectations that create political tensions. It necessitates the growth in agriculture and the rural
non-farm economy to reduce rural poverty and narrow down the prevailing inequality.

Johl (2011) argued that setting up more and more agro based industries in India will help get rid
of the surplus labour contained in the agricultural sector. Indian agriculture is plagued by the
disguised unemployment. Due to this, there has been a decrease in the size of operation holdings
from 2.30 hectare in 1970-71 to 1.81 hectare in 1980-81 and further to 1.33 hectare in 2000- 01.
This calls for a diversification of cropping pattern and to diversify the rural economy small and
ancillary agro based industries in the rural areas need to be established.

An indepth examination of the above mentioned studies bring out one thing in common
i.e. the conducive conditions for the development of agro industries in India. Further, when the
Indian agriculture is beleaguered by innumerable problems, the development of agro industries
seems to offer mush respite.

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SECTION III

DATABASE AND METHODOLOGY

In order to fulfill the above mentioned objectives, secondary data from various issues of Annual
Survey of Industries (ASI) published by the Central Statistical Organization has been used. To
study the inter-state variation of agro-processing industries, disaggregated data at 3 - digit level
have been used. The study identified a group of 18 agro processing industries for the years 2003-
04 and 2007-08 for which an analysis has been made (based on NIC – 98). Further, the
performance of each agro-processing industry and states is compared to the same industry in
other states of India. In order to investigate the inter-industry differences in efficiency of selected
agro industries, the study focuses on the Farrell’s index. The study uses gross value added per
employee as the measure of labor productivity and the ratio of gross value added to investment
as the measure of capital productivity. For each industry, relative productivity of labor and
capital (say, in the ith industry) are obtained by dividing productivity of labor and of capital in the
ith industry by those in `all other industries’ in the following manner.
w r
⎛ LP i ⎞ ⎛ KP i ⎞
RE i
= ⎜ ⎟ ⎜ ⎟
⎜ LP A − i ⎟ ⎜ KP A − i ⎟
⎝ ⎠ ⎝ ⎠

where,

w =
(w i
+ w A − i
)
2

r =
(r i
+ r A−i
)
2
w+r=1 …… (Farrell, 1957)

The relative efficiency index is computed as weighted average of relative productivity of labor
and of capital. Thus, where LP and KP denote productivity of labor and of capital respectively.
Subscript i refer to the ith industry and superscript A-i refer to all but the ith industry. w and r are
the income shares of labor and capital respectively. This measure of relative efficiency assumes
that there are constant returns to scale (w + r = 1) and competitive equilibrium prevails in the
market.

The efficiency measure described above is based on the Cobb-Douglas production function.
Using the logarithmic transformation, it can be written as

⎛ LP i ⎞ ⎛ i ⎞
InRE i = wIn ⎜ ⎟ + rIn ⎜ KP ⎟
⎜ LP A−i ⎟ ⎜ KP A−i ⎟
⎝ ⎠ ⎝ ⎠

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The vintages of capital might vary widely across the industries but while computing relative
productivity of capital, taking average over all the industries except the one for which relative
productivity is being calculated has taken care of the effect of extreme cases. Similarly, there
could be wide variations of hours worked among the states but even in this case, taking average
has reduced the effect of extreme cases sufficiently. In order to estimate the economies of scale
for the factors used Cobb Douglas production function has been used.

Y = A Kα Lβ eu

Where Y is the output, L is the labour, K is the capital, u is stochastic term. For the present
analysis we are making use of the Ordinary Least Squares (OLS) method because of its
simplicity and big size of our sample. The estimates of α and β are obtained by regressing Log Y
on log L and log K using principle of OLS. Coefficient of determination between log Y and joint
effects of log L and log K has also been carried out and to check the overall significance F – test
is used. To test the significance of output elasticity of labour (α) and capital (β), t – test is used.

For studying the growth of agro-based industries, compound growth rate of each of the selected
indicators have been calculated for the period from 2003-04 to 2007-08. The trend in growth has
been studied by computing the compound growth rate through principle of least squares, using
following formula

Log Y = Log a + ( Log b)t

The data given in ASI reports is on current prices but for proper comparison, the values are
deflated with suitable deflator and expressed in 1993-94 prices.

The study has been divided into seven sections. Section I discusses the crisis in agriculture
sector. In section II literature pertaining to the agro based industries is reviewed. In section III
database and methodology for the present study is discussed. Analysis of labour productivity,
capital productivity and relative efficiency of agro based industries is discussed in section IV. A
glimpse of growth in terms of output per factory in agro based industries is carried out in section
VI. Concluding remarks follow section VII.

SECTION IV

RELATIVE EFFCIEICNY OF AGRO BASED INDUSTRIES IN INDIA

In the last many years efforts have been made to promote agro-based industries in Indian
states, but the development has been haphazard and not much effort have been put to regulate
and to promote agro-based industries in India. Productivity of agro based industries could not
remain uniform in the Indian states. Table 2 and 3 show the dominant states in terms of labour
and capital productivity among the agro-based industries in India during the year 2007-08. It is
quite evident from the table that a large variation exists among Indian states in terms of labour
and capital productivity. As far as labour productivity is concerned five states which had been
most labour productive constitutes Maharashtra, Uttaranchal, Haryana, Himachal Pardesh and
Delhi. Similarly, Chhattisgarh, Kerala, Jammu and Kashmir, Jharkhand, Tamil Nadu and Assam
turned out to be least labour productive states.
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TABLE 2
TOP INDIAN STATES IN TERMS OF LABOUR PRODUCTIVITY: 2007-08
Industry No. Name of the industry Top states
151 Production, processing and preservation of meat, fish, Madhya Pardesh, Tamil Nadu, Maharashtra, Delhi, Haryana
fruit, vegetables, oils and fats.
152 Manufacture of dairy product Delhi, Uttar Pradesh, Maharashtra, Madhya Pardesh, Jharkhand
153 Manufacture of grain mill products, starches and starch Jharkhand, Delhi, Himachal Pardesh, Haryana, Maharashtra
products, and prepared animal feeds
154 Manufacture of other food products Uttaranchal, Delhi, Chhattisgarh, Gujarat, Haryana
155 Manufacture of beverages Punjab, Bihar, Assam, Haryana, Uttar Pardesh
160 Manufacture of tobacco products Bihar, Uttar Pardesh, Gujarat, Himachal Pardesh, Haryana
171 Spinning, weaving and finishing of textiles. Madhya Pardesh, Uttaranchal, Himachal Pardesh, Punjab,
Gujarat
172 Manufacture of other textiles Uttaranchal, Rajasthan, Himachal Pardesh, Jammu and Kashmir,
Maharashtra
173 Manufacture of knitted and crocheted fabrics and articles Maharashtra, Haryana, West Bengal, Rajasthan, Punjab
181 Manufacture of wearing apparel, except fur apparel Himachal Pardesh, Maharashtra, Uttaranchal, West Bengal,
Delhi
182 Dressing and dyeing of fur; manufacture of articles of fur Uttaranchal, Uttar Pardesh, Haryana, Tamil Nadu, Punjab
191 Tanning and dressing of leather, manufacture of luggage Madhya Pardesh, Himachal Pardesh, West Bengal, Haryana,
handbags, saddlery & harness. Delhi
192 Manufacture of footwear. Uttaranchal, Maharashtra, Gujarat, Haryana, West Bengal
201 Saw milling and planing of wood Uttaranchal, Delhi, Gujarat, Maharashtra, Andhra Pardesh
202 Manufacture of products of wood, cork, straw and plaiting
materials Uttaranchal, Orissa, Maharashtra, Andhra Pardesh, West Bengal
210 Manufacture of paper and paper product Uttaranchal, Assam, Bihar, Orissa, Maharashtra
221 Publishing Punjab, Andhra Pardesh, West Bengal, Gujarat, Kerala
222 Printing and service activities related to printing Himachal Pardesh, Maharashtra, Rajasthan, Uttaranchal, Bihar
Source: Author’s calculations based on supplement to Annual Survey of Industries data

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TABLE 3

TOP INDIAN STATES IN TERMS OF CAPITAL PRODUCTIVITY: 2007-08

Industry Name of the industry Top states


No.
151 Production, processing and preservation of meat, fish, fruit, Karnataka, Maharashtra, Jammu and Kashmir, Himachal
vegetables, oils and fats. Pardesh, Haryana
152 Manufacture of dairy product Karnataka, Orissa, Jharkhand, Bihar, Maharashtra
153 Manufacture of grain mill products, starches and starch products,
and prepared animal feeds Karnataka, Delhi, Jharkhand, Himachal Pardesh, Assam
154 Manufacture of other food products Karnataka, Madhya Pardesh, Kerala, Delhi, Assam
155 Manufacture of beverages Karnataka, Punjab, Assam, Uttar Pardesh, Bihar, Tamil Nadu
160 Manufacture of tobacco products Karnataka, Kerala, Uttar Pardesh, Orissa, Punjab
171 Spinning, weaving and finishing of textiles. Karnataka, Uttaranchal, Bihar, West Bengal, Jharkhand
172 Manufacture of other textiles Karnataka, Andhra Pardesh, Delhi, Rajasthan, Uttar Pardesh
173 Manufacture of knitted and crocheted fabrics and articles Karnataka, Kerala, Maharashtra, Tamil Nadu, Punjab
181 Manufacture of wearing apparel, except fur apparel Himachal Pardesh, Karnataka, Jammu and Kashmir, Gujarat,
Delhi, Tamil Nadu
182 Dressing and dyeing of fur; manufacture of articles of fur Gujarat, Uttaranchal, Punjab, Tamil Nadu, Haryana
191 Tanning and dressing of leather, manufacture of luggage
handbags, saddlery & harness. Karnataka, Delhi, Madhya Pardesh, Bihar, Kerala
192 Manufacture of footwear. Karnataka, Uttaranchal, Himachal Pardesh, Gujarat, Uttar
Pardesh
201 Saw milling and planing of wood Uttaranchal, Assam, Andhra Pardesh, Karnataka, Jharkhand
202 Manufacture of products of wood, cork, straw and plaiting
materials Karnataka, Bihar, Orissa, Andhra Pardesh, Assam
210 Manufacture of paper and paper product Karnataka, Bihar, Assam, Haryana, Kerala
221 Publishing Karnataka, Uttaranchal, Assam, Bihar, Kerala, Punjab
222 Printing and service activities related to printing Karnataka, Jammu and Kashmir, Bihar, Kerala, Rajasthan
Source: Author’s calculations based on supplement to Annual Survey of Industries data

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For the highly capital productive states, Karnataka, Bihar, Kerala, Assam, Uttaranchal, Punjab
and Delhi turned out to be the most capital productive states. Interestingly, Karnataka has
topped the list of capital productive states in almost each and every agro industry. The only
exception in this context is the dressing and dyeing of fur industry which is non-existent in the
state. On the other hand, Chhattisgarh, West Bengal, Rajasthan, and Madhya Pardesh proved to
be the least capital productive states in the economy.

Table 4 shows the estimates of relative efficiency among the agro-based industries during the
year 2007-08. The results show that Manufacture of tobacco products (160), manufacture of
beverages (155), publishing (221) and Manufacture of wearing apparel (181) industry have
excelled in terms of relative efficiency. However, a large variation is found to subsist among the
Indian states, when we analyze each industry. Although, most of the industries showed a mean
value of greater than 1.0, a high coefficient of variation exists in most of the industries. The
nature of relatively efficiency among all the industries is discussed in the following paragraphs.

In Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats (151)
industry, dominant five states in terms of relative efficiency for the year 2007-08 are
Maharashtra (3.96), Jammu and Kashmir (2.10), Haryana (1.92), Madhya Pardesh (1.72) and
Tamil Nadu (1.60). On the contrary, for the low relatively efficient states, the results reveal that
three states i.e. Bihar, Himachal Pardesh and Uttar Pardesh have performed dismally in the time
period taken for the study. Other states that have performed reasonably well in this industry
include Chhattisgarh, Delhi, Rajasthan and West Bengal.

In case of manufacture of dairy products industry (152) Jharkhand (2.30), Orissa (2.24),
Maharashtra (1.51), Karnataka (1.47) and Madhya Pardesh (1.33) figured the list of five leading
relatively efficient states. Similarly, five least labour dominant states in the year 2007-08
constitute Rajasthan and Assam. Other states that have an edge over the counterparts in the
development of this industry include Punjab, Gujarat and Jammu and Kashmir.

Five states that are dominant in terms of relative efficiency vis-à-vis other Indian states in
Manufacture of grain mill products, starches and starch products, and prepared animal feeds
(153) industry are Jharkhand (4.47), Chhattisgarh (1.71), Jammu and Kashmir (1.65), Delhi
(1.25) and Rajasthan (1.19). Thus, grain mill products industry is of paramount importance for
these states. For the relatively inefficient states, the results indicate that Punjab, Bihar, Uttar
Pardesh and Uttaranchal lead the list in this industry.

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TABLE 4
ESTIMATES OF RELATIVE EFFICIENCY AMONG THE AGRO-BASED INDUSTRIES IN INDIA
151 152 153 154 155 160 171 172 173 181 182 191 192 201 202 210 221 222
AP 0.86 0.84 0.93 0.48 1.05 0.74 0.73 1.96 0.28 0.53 0.69 0.35 1.26 1.16 0.95 4.01 0.96
ASSAM 0.43 0.40 0.64 0.58 2.14 1.33 0.47 0.75 0.72 1.68 1.99 0.72
BIHAR 0.27 0.49 0.43 0.17 1.34 8.43 0.55 0.20 0.62 0.25 0.38 1.36 1.19 1.06
CHATTISGARH 1.42 1.71 1.37 1.76 0.80 1.27 0.36 0.59 0.30 0.67 1.37 0.43 0.11
DELHI 1.15 1.25 1.26 0.96 0.63 0.57 0.78 0.57 0.82 0.80 0.78 0.95 0.80 1.41 0.94
GUJARAT 0.72 1.21 0.66 0.81 0.48 2.40 0.84 0.91 1.02 1.19 1.23 0.66 1.40 0.82 0.74 0.74 3.09 1.00
HARYANA 1.92 0.65 0.70 0.76 1.43 0.98 0.53 0.89 1.04 0.85 0.81 1.04 0.95 0.82 0.75 1.54 1.19 1.35
HP 0.22 1.04 0.58 0.48 0.80 0.55 0.56 7.35 0.80 1.46 0.41 0.18 0.71 1.91
J&K 2.10 0.97 1.65 0.73 1.33 0.81 1.48 1.62 0.32 0.47 1.37 1.12
JHARKHAND 0.30 2.30 4.47 1.16 0.62 0.88 0.79 0.36 0.69 0.81 1.19 1.66
KARNATAKA 0.31 1.47 0.64 0.41 1.02 3.66 0.50 0.72 0.43 0.65 0.32 0.47 0.45 1.20 0.65 3.31 0.54
KERALA 0.49 0.94 0.74 0.43 0.15 4.84 0.28 0.54 0.79 0.44 0.63 0.66 0.44 0.38 0.94 3.00 1.15
MAHARASHTRA 3.96 1.51 0.39 1.13 1.31 0.44 1.35 0.78 0.55 0.30 2.53 0.55 0.58 0.71 0.94 1.03 0.57
MP 1.72 1.33 1.02 0.62 1.13 0.68 0.61 0.80 1.21 1.00 0.47 1.22 0.51 0.89 1.15 1.74 1.48
ORISSA 0.56 2.24 0.57 0.42 1.05 0.65 0.70 0.30 0.70 1.62 1.30 0.88 0.78
PUNJAB 0.46 0.63 0.23 0.27 17.20 0.47 0.47 0.50 0.62 0.41 0.32 0.35 0.28 0.31 0.50 2.46 0.57
RAJASTHAN 1.24 0.17 1.19 0.69 4.02 0.51 1.27 2.75 1.58 0.15 0.79 0.72 0.69 0.02 4.13
TAMIL NADU 1.60 0.88 0.77 0.80 2.56 0.65 0.88 0.76 1.04 1.00 1.11 0.83 0.75 0.74 1.07 1.00 1.40 1.19
UP 0.41 1.25 0.53 0.26 2.47 9.04 0.39 0.83 0.68 0.79 0.61 0.43 0.88 0.39 0.48 0.64 0.99 0.86
UTTARANCHAL 0.45 0.51 0.54 1.11 0.32 0.68 2.05 0.45 1.40 1.12 1.95 0.68 1.43 1.31 0.81
WEST BENGAL 1.13 0.91 0.61 0.59 1.50 0.81 1.09 0.57 0.95 1.32 1.09 0.84 0.75 0.88 0.65 3.04 1.00
Mean 1.03 1.04 0.99 0.70 2.11 2.13 0.73 0.90 0.82 1.19 0.93 0.80 0.82 0.67 0.74 1.03 1.81 1.14
STDDEV 0.89 0.58 0.89 0.34 3.57 2.68 0.30 0.66 0.36 1.69 0.38 0.55 0.34 0.39 0.35 0.35 1.10 0.80
CV 86.13 56.02 89.88 49.14 169.12 126.08 41.05 73.03 44.41 141.43 41.17 68.59 41.41 57.77 47.39 33.65 61.16 69.85
Source: Supplement to Annual Survey of Industries, issue 2007-08

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Chhattisgarh (1.37), Delhi (1.26), Jharkhand (1.16), Maharashtra (1.13), and Uttaranchal (1.11)
turned out to be relatively efficient states in manufacture of other food products (154) industry.
Similarly, among the most inefficient states in this industry, Bihar and Uttar Pardesh tops the list.
Gujarat, Jammu and Kashmir, Haryana, Rajasthan and Tamil Nadu have also shown a good
response to the development of this industry.

In manufacture of beverages (155) industry, relative efficiency is found to be highest in case of


Punjab (17.20) followed by Rajasthan (4.02), Tamil Nadu (2.56), Uttar Pardesh (2.47) and
Assam (2.14) vis-à-vis other states selected for study. Three states i.e. Kerala, Himachal Pardesh
and Gujarat turned out to be the least efficient states in this industry.

In case of manufacture of tobacco products (160) industry, relative efficiency is found to be


high in Uttar Pardesh (9.04), Bihar (8.43), Kerala (4.84), Karnataka (3.66) and Gujarat (2.40)
vis-à-vis other states selected. The least efficient states in this industry and those are also
common to both the lists include Rajasthan, Delhi and Orissa.

The dominant states in terms of relative efficiency vis-à-vis other Indian states in spinning,
weaving and finishing of textiles (171) industry are Maharashtra (1.35), Rajasthan and
Chhattisgarh (1.27 each), West Bengal (1.09), Tamil Nadu (0.88) and Gujarat (0.84). Other
states where this industry has shown signs of development include Andhra Pardesh, Jharkhand
and Jammu and Kashmir. For the inefficient states, the results indicate that Assam, Bihar and
Kerala lead the list in this industry.

In Manufacture of other textiles (172) industry, dominant five states in terms of relative
efficiency for the year 2007-08 are Rajasthan (2.75), Uttaranchal (2.05), Andhra Pardesh (1.96),
Jammu and Kashmir (1.48) and Gujarat (0.91). Other states that have performed reasonably well
in this industry include Maharashtra and Haryana. On the contrary, for the less relatively
efficient states, the results reveal that three states i.e. Bihar, Orissa and Kerala have performed
dismally in the time periods taken for the study.

In case of Manufacture of knitted and crocheted fabrics and articles (173) industry, Rajasthan
(1.58), Madhya Pardesh (1.21), Tamil Nadu (1.04), Gujarat (1.02) and West Bengal (0.95)
figured the list of five relatively efficient states. Other states that have an edge over the
counterparts in the development of this industry include Kerala and Uttar Pardesh.

Himachal Pardesh (7.35), Jammu and Kashmir (1.62), West Bengal(1.32), Gujarat(1.19),
Madhya Pardesh and Tamil Nadu (1.00 each) turned out to be the most efficient states vis-à-vis
other Indian states for the year 2007-08 in manufacture of wearing apparel (181) industry. In the
relatively inefficient states, Kerala, Maharashtra and Uttaranchal lead the list in this industry.

Dressing and dyeing of fur (182) industry showed the signs of development among the selected
Indian states. It can be seen from the table 3 that the industry has done remarkably well in
Uttaranchal, Gujarat and Tamil Nadu.

In case of Tanning and dressing of leather, manufacture of luggage handbags, saddlery & harness
(191) industry, for the year 2007-08, Maharashtra (2.53), West Bengal (1.09), Haryana (1.04),

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Tamil Nadu (0.83), Delhi and Himachal Pardesh (0.80 each) figured the list of five relatively
efficient states. For the least efficient states, Karnataka, Punjab and Uttar Pardesh topped the list.

Himachal Pardesh (1.46), Gujarat (1.40), Madhya Pardesh (1.22), Uttaranchal (1.12) and
Haryana (0.95) figured the list of top relatively efficient states in manufacture of footwear (192)
industry for the year 2007-08. For the relatively inefficient states, the results indicate that Andhra
Pardesh, Punjab, Chhattisgarh and Karnataka top the list in this industry.

In case of saw milling and planning of wood industry (201), for the year 2007-08, Uttaranchal
(1.95), Andhra Pardesh (1.26), Delhi (0.95), Gujarat and Haryana (0.82 each) and Assam (0.75)
topped the list of five relatively efficient states. The least labour dominant states in the year
2007-08 constitute Bihar and Punjab in this industry.

Orissa (1.62), Karnataka (1.20), Andhra Pardesh (1.16), Tamil Nadu (1.07) and Madhya Pardesh
(0.89) turned out to be the most efficient states vis-à-vis other Indian states in manufacture of
products of wood, cork, straw and plaiting materials (202) industry. In the relatively inefficient
states, Himachal Pardesh, Punjab, Kerala and Bihar lead the list in this industry.

In case of Manufacture of paper and paper products (210) industry, for the year 2007-08, Assam
(1.68), Haryana (1.54), Uttaranchal (1.43), Jammu and Kashmir and Chhattisgarh (1.37 each)
and Bihar (1.36) figured the list of five relatively efficient states. Again, in terms of least
efficient states Punjab, Himachal Pardesh and Rajasthan have performed badly in this industry.

Major states in terms of relative efficiency vis-à-vis other Indian states for the year 2007-08 in
publishing (221) industry are Andhra Pardesh (4.01), Karnataka (3.31), Gujarat (3.09), West
Bengal (3.04), and Kerala (3.00). Among the inefficient states, the results indicate that
Rajasthan, Chhattisgarh and Uttar Pardesh top the list in this industry.

In printing and service activities related to printing (222) industry, dominant five states in terms
of relative efficiency for the year 2007-08 are Rajasthan (4.13), Himachal Pardesh (1.91),
Jharkhand (1.66), Madhya Pardesh (1.48) and Haryana (1.35). On the other hand, states that
could not perform well in this industry include Assam, Chhattisgarh and Karnataka.

Summing up, the above discussion state that the development of agro based industries cannot be
taken up in a slapdash manner. The development of agro industries vary in the Indian states
owing to a presence or absence of large number of factories, public and private willingness to
develop industry, congeniality of entrepreneurship environment, non-availability of natural
minerals, existence of raw material in the state, locational disadvantages and lacking the
entrepreneurial environment too. Sometimes, even a lack of perspective of state policy is also
responsible for the feeble development of agro industries. Despite these constraints, some states
have shown an openness towards the development of agro based industries. Among these states,
Haryana has notched the top slot followed by Tamil Nadu, Rajasthan, West Bengal, Uttaranchal
and Delhi. Contrary to this, Madhya Pardesh, Maharashtra, Kerala and Assam have performed
miserably in the parameters studied.

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SECTION V

ESTIMATES OF FRONTIER PRODUCTION FUNCTION

Table 5 shows the values of labour and capital coefficients for the year 2007-08. It is evident that
70 percent of the variation in total output in the agro based industries is explained by the labour
as well as capital. Further, the labour coefficient in case of Jammu and Kashmir is found to be
negative. It means that labour has a negative impact on the output of the agro based industries in
the state. An increase in labour is followed by a corresponding decrease in total output of the
agro based industries. So far, the capital coefficient is concerned, there is a positive relationship
found in all the states. In two states i.e. Delhi and Jammu and Kashmir capital coefficient is
found to be greater than one. It indicates that per unit increase in capital has given
correspondingly more increase in the value of output of agro based industries in these states. In
other words, these states show relatively more capital intensive industries. However, in case of
labour no states have more than one labour value which clearly shows that the relative
contribution of labour in increasing the value of output is much low.

Further, in all the states (except Andhra Pardesh, Gujarat, Punjab, Tamil Nadu and Uttar
Pardesh) the value of R2 is more that 80 percent which shows that labour and capital together
contribute more than 80 percent of the variation in the gross output of the agro based industries
in the Indian states.

An important inference that can be drawn from table 5 is that increasing returns to scale accrued
in case of five states i.e. Chhattisgarh, Delhi, Himachal Pardesh and Jammu and Kashmir and
Orissa respectively. Returns to scale show the contribution of both the factors (labour and capital
together) in increasing the level of output. This shows that labour and capital productivity have
not a very significant contribution in increasing the output in agro based industries in majority of
the Indian states. This calls for drastic policy measures to improve the labour and capital
productivities in agro based industries across the Indian states.

Results from table 5 reflect high regression coefficient values for capital which clearly specify
that the relative contribution of capital is quite high in comparison to labour. This is quite
understandable also in view of the nature of products produced in agro based industries which
are perishable in nature and require a high dose of capital to maintain their efficiency. In view of
the above, top states that have shown remarkable labour and capital productivities constitutes
Himachal Pardesh, Delhi, Assam, Jammu and Kashmir, Chhattisgarh, and Orissa. On the other
hand, in Kerala, Andhra Pardesh, Tamil Nadu and Punjab, labour and capital productivity is
found to be low. Hence, efforts should be made to further consolidate the functioning of agro
industries in those states where they have relatively more advantage by asking the states to take
adequate measures in their respective industrial policies to promote these very industries.

Further, from table 6 it can be concluded that as many as eleven agro based industries have
shown an increasing returns to scale in the year 2007-08. These industries are production,
processing and preservation of meat, fish, fruit, vegetables, oils and fats (151), manufacture of
dairy product (152), manufacture of grain mill products, starches and starch products, and
prepared animal feeds (153), manufacture of beverages (155), manufacture of other textiles

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(172), dressing and dyeing of fur; (182), tanning and dressing of leather, manufacture of luggage
handbags, saddlery & harness. (191), manufacture of footwear (192), saw milling and planing of
wood (201), publishing (221) and printing and service activities related to printing (222). By and
large, the table shows good prospects for the development of agro based industries in India.

TABLE 5

ESTIMATES OF THE COBB DOUGLAS PRODUCTION FUNCTION AMONG


AGRO- BASED INDUSTRIES IN INDIA

2007-08
YEAR STATE
Variable α Β F R2
AP 0.23 0.44 17.17 0.71
ASSAM 0.06 0.93 37.23 0.88
BIHAR 0.34 0.58 42.34 0.88
CHATTISGARH 0.28 0.83 46.89 0.90
DELHI 0.15 1.13 64.77 0.91
GUJARAT 0.09 0.79 12.59 0.62
HARYANA 0.05 0.84 76.43 0.91
HP 0.76 0.47 87.55 0.94
J&K -0.07 1.07 53.57 0.91
JHARKHAND 0.23 0.74 20.70 0.80
KARNATAKA 0.31 0.62 50.00 0.87
KERALA 0.10 0.64 62.39 0.89
MAHARASHTRA 0.14 0.70 30.26 0.81
MP 0.30 0.67 31.80 0.82
ORISSA 0.57 0.44 26.52 0.84
PUNJAB 0.35 0.47 21.91 0.77
RAJASTHAN 0.33 0.62 66.27 0.90
TAMIL NADU 0.21 0.61 28.93 0.79
UP 0.13 0.80 26.44 0.77
UTTARANCHAL 0.45 0.46 48.91 0.89
WEST BENGAL 0.00 0.88 35.93 0.83
Source: Supplement to Annual Survey of Industries, Issue 2007-08

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TABLE 6

ESTIMATES OF THE COBB DOUGLAS PRODUCTION FUNCTION AMONG


AGRO- BASED INDUSTRIES IN INDIA

2007-08
YEAR STATE
Variable α Β F R2

151 0.24 0.83 27.60 0.75

152 1.04 0.18 85.83 0.92

153 0.48 0.60 61.60 0.87

154 0.50 0.36 64.42 0.87

155 0.29 0.97 22.83 0.71

160 0.14 0.67 63.91 0.89

171 0.31 0.63 218.04 0.96

172 0.49 0.56 73.64 0.89

173 0.33 0.55 47.23 0.90

181 0.63 0.16 8.81 0.57

182 0.25 1.00 10.93 0.84

191 0.30 0.84 38.03 0.87

192 0.88 0.17 77.90 0.92

201 0.64 0.91 49.97 0.85

202 0.50 0.41 47.98 0.50

210 0.33 0.51 235.58 0.96

221 0.58 0.43 39.96 0.82

222 0.52 0.48 88.97 0.90

Source: Supplement to Annual Survey of Industries, Issue 2007-08

SECTION V
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GROWTH OF AGRO BASED INDUSTRIES IN INDIA

In this section, we have carried out the growth rates of output per factory for those states for
which the data was available. Compound growth rates of output per factory for different
industries for the year 2003-04 and 2007-08 are given in table 7. Table shows that five industries
namely printing and service activities related to printing (222), manufacture of knitted and
crocheted fabrics and articles (173), manufacture of products of wood, cork, straw and plaiting
materials (202), saw milling and planing of wood (201) and manufacture of beverages (155)
experienced a maximum growth in the time period taken for study. Specifically, the growth rates
for these industries stand at 13.73 percent, 12.33 percent, 9.67 percent, 9.37 percent and 7.90
percent respectively. Further, a look at the agro based industries across the Indian states indicate
that as many as fifteen industries (out of eighteen selected for study) showed a positive growth
rate in terms of output. An indepth analysis of the fastest growing agro based industries is carried
out in the following paragraphs.

In case of printing and service activities related to printing (222) industry, highest growth rate in
terms of output for the years 2003-04 to 2007-08 is recorded in Bihar (96.24 percent), Rajasthan
(54.56 percent), Madhya Pardesh (21.43 percent), Haryana (20.65 percent) and Himachal
Pardesh (19.24 percent) states vis-à-vis other states selected for study. As many as thirteen states
have shown a positive growth rate in this industry. The overall growth rate in terms of output for
printing and service activities related to printing industry for the all the states put together
worked out to be 13.73 percent. So far, the negative growth rate is concerned in this industry,
there are five states exhibiting negative growth rate in the time period taken for study. To be
specific, Orissa (-15.65 percent), Chhattisgarh (-10.65 percent), Assam (-4.94 percent), Kerala (-
1.47 percent) and Andhra Pardesh (-0.72 percent) experienced a negative growth rate in this
industry.

Similarly, for the manufacture of knitted and crocheted fabrics and articles (173) industry,
Rajasthan (35.97 percent), West Bengal (21.85 percent), Andhra Pardesh (30.73 percent),
Karnataka (29.10 percent) and Maharashtra (16.14 percent) states showed a high growth. Overall
growth rate for all the states put together turned out to be 11.71 percent for the years 2003-04 to
2007-08 in this industry. The states that showed a dismal performance in terms

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TABLE 7
GROWTH OF AGRO PROCESSING INDUSTRIES IN TERMS OF OUTPUT PER FACTORY IN INDIAN STATES

151 152 153 154 155 160 171 172 173 181 182 191 192 201 202 210 221 222
-
Andhra Pradesh -7.56 -1.83 21.25 6.11 0.00 -0.88 -1.24 14.75 23.75 0.50 27.13 6.26 5.11 -2.20 -0.72
- - -
Assam 12.81 -8.81 12.88 3.01 6.12 19.32 6.23 5.17 27.53 -9.71 23.34 -4.94
- -
Bihar 32.89 1.02 5.20 4.20 5.11 25.62 37.28 -8.19 20.88 12.47 5.03 -7.36 6.34 96.24
10.6 - -
Chattisgarh 8.40 6.03 -6.61 6 3.62 6.06 14.64 -9.84 1.40 4.76 0.43 9.02 10.01
- -
Delhi -1.83 12.73 4.27 9.72 20.58 34.76 -0.57 -3.47 1.88 8.61 0.53 0.02 11.78 5.03
12.7 -
Gujarat 7.03 4.30 7.73 6.38 9 -4.51 9.40 4.41 -2.70 -3.55 10.36 6.44 16.48 16.27 1.25 2.60 9.40
16.9 -
Haryana 21.89 11.47 16.43 0.71 1 17.01 -3.32 5.29 6.81 7.07 1.86 13.45 1.70 -2.70 -2.31 -3.90 -8.08 1.79
- - - 160.4 -
Himachal Pradesh 7.22 9.60 -4.74 -0.75 12.58 -1.12 12.51 14.79 0.18 8 11.48 5.36 1.70 19.24
Jammu & 11.5 -
Kashmir 9.76 -2.62 -0.18 5.52 2 19.55 26.30 8.71 26.44 69.50
-
Jharkhand 17.23 4.04 39.87 9.22 7.70 -3.53 0.15 10.71 6.00 4.42 -3.07 -6.51 18.19
- -
Karnataka 3.55 3.56 3.06 2.83 6.10 1.00 7.45 12.85 20.96 14.77 16.67 -0.82 3.35 15.39 3.28 15.67 6.20
- - - - -
Kerala -3.72 14.01 0.96 -0.97 -3.45 10.28 11.70 4.22 15.89 26.30 33.44 -14.02 8.75 15.35 10.68 7.16 -1.47
- -
Madhya Pradesh 8.24 14.97 8.37 -0.64 9.58 -5.31 2.23 21.35 6.84 17.11 11.65 3.60 -8.17 -1.81 2.93 11.20 21.43
Maharashtra 5.96 1.47 4.20 9.68 -3.56 3.04 4.56 12.58 20.56 12.22 -5.91 11.72 54.85 8.87 5.30 10.62 20.65
- 15.1 -
Orissa 19.11 9.86 19.26 5 3.80 1.85 8.05 2.62 5.37 7.53 3.97 -1.43 15.65
- 22.5
Punjab -3.56 17.60 5.22 8.79 8 7.94 9.50 13.01 8.57 10.77 5.29 -3.90 6.04 0.50 54.09 12.20
-
Rajasthan -0.38 8.20 -3.60 2.95 3.67 -5.22 7.88 13.75 41.36 4.52 4.91 46.33 -8.08 4.81 16.85 54.56
-
Tamil Nadu 30.79 7.73 -5.80 3.82 3.33 -3.56 4.72 1.82 15.09 -2.29 7.30 8.13 45.64 18.08 7.67 1.47 3.80

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10.2 -
Uttar Pradesh 9.29 2.90 7.22 8 6.60 2.71 -8.10 -0.99 3.52 3.37 6.66 -2.31 9.80 -1.56 5.59 4.66 1.70
- - 15.3
Uttaranchal 19.50 44.96 11.26 2 -5.52 39.45 44.53 8.65 5.84 51.01 4.76 -5.56
-
West Bengal 18.62 -3.42 2.46 6.75 0.97 -6.31 4.45 10.68 24.59 5.45 -1.99 6.93 8.88 21.02 7.04 1.24 8.63
-
Overall Growth 4.83 2.48 7.83 5.82 7.90 -2.62 5.48 7.37 12.33 1.28 4.87 -6.04 7.73 9.37 9.67 0.15 3.82 13.73

of growth in the time period studied comprise of Uttar Pardesh (-10.93 percent), Kerala (-9.93 percent), Haryana (-2.71 percent) and
Madhya Pardesh (-1.33 percent).

Manufacture of products of wood, cork, straw and plaiting materials (202) industry showed an outstanding performance in terms of
output growth in the time period 2003-04 to 2007-08. Average output growth for all the states put together augmented to 9.67 percent.
Only six states i.e. Uttaranchal (51.01 percent), Assam (27.53 percent), West Bengal (21.02 percent), Gujarat (16.27 percent), Karnataka
(15.39 percent) and Kerala (15.35 percent) had a growth rate over and above the overall growth rate. Fifteen states showed a growth rate
less than the overall growth rate in this industry. Further, four states viz. Tamil Nadu (-18.08 percent), Rajasthan (-8.08 percent),
Haryana (-2.31 percent) and Madhya Pardesh (-1.81 percent) demonstrated a negative growth rate in this industry.

Highest growth rate in saw milling and planing of wood industry (201) is bagged by Maharashtra (54.85 percent) followed by Rajasthan
(46.33 percent), Tamil Nadu (45.64 percent) and Gujarat (19.24 percent) for the years 2003-04 to 2007-08. Interestingly, only four states
experienced a growth rate more than the overall growth rate in this industry. Overall growth rate in terms of output for the industry is
9.37 percent. It clearly brings forth the inequality in the growth rate among the Indian states in this agro industry. Seven states i.e. Jammu
and Kashmir (-26.30 percent), Bihar (-12.47 percent), Himachal Pardesh (-11.48 percent), Madhya Pardesh (-8.17 percent), Punjab (-
3.90 percent), Haryana (-2.70 percent) and Uttar Pardesh (-1.56 percent) had a negative growth rate.

Punjab (22.58 percent) followed by Haryana (16.91 percent), Gujarat (12.79 percent), Jammu and Kashmir (11.52 percent) and
Chhattisgarh (10.06 percent) showed a high growth in manufacture of beverages (155) industry. This industry has performed well in all
the states (except, Uttaranchal, Kerala and Himachal Pardesh) in India. Overall growth rate in this industry also stood high at 7.90
percent. Thus, beverages industry has shown a good temperament for development in all the Indian states.

Three industries i.e. tanning and dressing of leather, manufacture of luggage handbags, saddlery & harness (191), Dressing and dyeing of
fur (182) and Manufacture of tobacco products (160) have shown a negative growth during the years 2003-04 and 2007-08 in terms of
output (table 7). But the development of such industries having a negative growth rate cannot be retarded only on the grounds that they

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have a negative growth in terms of output per facotry. Logic that is of paramount importance here is to analyze those states in such
industries which have shown a positive growth. For example, in tanning and dressing of leather, manufacture of luggage handbags,
saddlery & harness (191) industry, it is noticeable that in eight states have registered a positive growth rate. Thus, the industry needs to
be developed and promoted in these eight states. Similarly, for the manufacture of tobacco products industry as many as eight states
showed a positive growth in the years 2003-04 and 2007-08. Maximum growth rate is achieved by Bihar (25.62 percent) followed by
Delhi (20.58 percent) and Haryana (17.01 percent). Thus, the industry has shown the symptoms of development in the selected states. As
far as, the performance of dressing and dyeing of fur (182) industry is concerned, none of the states could exhibit the growth
phenomenon. Thus, the development of this industry in the Indian economy is a cause of concern.

SECTION VII

CONCLUSION

The present study identifies the promising agro-based industries and the most suitable states for their development in India. Conclusions
can be drawn with the help of the following summary table.

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Relative Returns to
Growth
Industry efficiency scale Most suitable states for development
No.
151 Medium Increasing High Haryana, Jammu and Kashmir, Tamil Nadu, Maharashtra, West Bengal
152 Medium Increasing Medium Madhya Pardesh, Orissa, Jharkhand, Karnataka, Gujarat
153 Medium Increasing High Delhi, Jharkhand, Himachal Pardesh, Haryana, Maharashtra
154 Low Decreasing High Uttaranchal, Jharkhand, Maharashtra, Delhi, Gujarat
155 High Increasing High Punjab, Haryana, Uttar Pardesh, Tamil Nadu, Assam
160 High Decreasing Low Bihar, Uttar Pardesh, Haryana, Gujarat, Karnataka
171 Low Decreasing High Bihar, Gujarat, Uttaranchal, West Bengal, Madhya Pardesh
172 Low Increasing High Andhra Pardesh, Rajasthan, Uttaranchal, Maharashtra, Madhya Pardesh
173 Low Decreasing High Maharashtra, West Bengal, Punjab, Rajasthan, Tamil Nadu
West Bengal, Himachal Pardesh, Madhya Pardesh, Karnatka, Jammu and
181 High Decreasing Medium
Kashmir
182 Low Increasing Low Uttaranchal, Tamil Nadu, Gujarat, Punjab, Haryana
191 Low Increasing Low Delhi, Haryana, Tamil Nadu, Madhya Pardesh, Kerala
192 Low Increasing High Gujarat, Himachal Pardesh, Uttaranchal, Maharashtra, Uttar Pardesh
201 Low Increasing High Gujarat, Uttaranchal, Andhra Pardesh, Jharkhand, Maharashtra
202 Low Decreasing High Andhra Pardesh, Karnataka, Assam, Orissa, Maharashtra
210 Medium Decreasing Medium Jammu and Kashmir, Tamil Nadu, Assam, Bihar, Haryana
221 High Increasing Medium Karnataka, West Bengal Punjab, Kerala, Gujarat
222 High Constant High Bihar, Himachal Pardesh, Rajasthan, Madhya Pardesh, Jharkhand
In case of number of agro-based industries labour and capital efficiency, relative efficiency, returns and growth in terms of output clearly
and consistently indicates bright prospects and a good scope of their development. In case of many other agro-based industries evidence
is equally clear about bleak prospects of further development. However, available evidence is not consistent in case of a number of agro-
based industries and about these no straight mechanical conclusions can be drawn. In such situations one has to draw conclusions by
exercising own informed judgment. On the basis of these evidences, we can say with some confidence that the following agro-based
industries have a very good scope of development in India.

1. Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats.

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2. Manufacture of grain mill products, starches and starch products, and prepared animal feeds

3. Manufacture of beverages

4. Publishing

5. Printing and service activities related to printing

Other industries which have shown a good temperament for development include

1. Manufacture of dairy product

2. Spinning, weaving and finishing of textiles.

3. Dressing and dyeing of fur; manufacture of articles of fur

4. Manufacture of footwear

5. Saw milling and planing of wood

6. Manufacture of paper and paper product

However, a careful thought need to be given to the states that do not support the development of a particular agro industry. For example,
if over a period of time, the states having a low labour and capital productivity do not show any signs of development, then it is better to
either think of their drastic overhauling or closing down of agro based industries in these states. Otherwise, a deep investigation is
required to understand the availability of raw material for these industries in the respective states. One of the tentative reasons for the low
contribution of labour in increasing the output value in agro-based industries at the state level can be attributed to the fact that agro based
industries are capital intensive in nature and require highly skilled manpower or labour. This call for the training and retraining of labour,
especially in those states, where the capital and labour productivities are lower and labour and capital coefficients are also low.

Similarly, due to the increased competition owing to market driven economy and need for the exports of agro based products, it is
pertinent to further increase the labour productivities as well as the capital efficiencies in those agro based industries, where the labour
productivity is although high, but relatively lower by international standards. Hence, in those states where labour and capital is high,
adequate policy measures must be undertaken in the form of extending subsidies, adequate infrastructure, availability of skilled labour

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and capital by setting up of training institutes for the workers where the skills can be enhanced and promoted in the agro or food
processing industries.

Similarly, there is an urgent need to set up engineering courses in food processing or agro processing areas respectively in those states
where agro based industries needs to be promoted. Unfortunately, even in the so called food bowl states i.e. Punjab and Haryana have
only few institutes which provide Diplomas/Degrees in agro-based industries. For example, traditionally, mechanical, electrical and civil
engineering courses were in vogue. Later on, timely introduction of electronics, computer science and information and technology (IT)
engineering courses in Bangalore and Hyderabad helped to give boost to IT industry in the states of Karnataka and Andhra Pardesh
respectively. Unfortunately, technical education has not taken any steps to boost the course of food technology and more specifically the
agro based engineering in India. This may be one of the important causes of unavailability of skilled and trained manpower which is
required by the agro based industries in particular. This study does highlight the importance of the availability of skilled and adequate
manpower to strengthen the cause of agro-based industries across the Indian states. In the changed business scenario of market oriented
environment, it is important to promote only efficient industries and say good bye to the inefficient industries in those states where their
relative contribution is very low.

A major effort is required from the government as well as the private sector also to provide critical infrastructure in order to bring a new
revolution, which is agro-industrial centric in nature. The present study goes a long way in identifying the promising agro industries in
the country.

REFERENCES

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2. Arunajatesan, S. and S. Balaji (2004), “Agro Industries: The Lure of Value Addition”, The Hindu, Feb 2.

3. Asea, P. A. and D. Kaija (2000), “Impact of the flower industry in Uganda”, ILO Working Paper 148. ILO, Geneva.

4. Clark, C (1957), The Condition of Economic progress, Macmillan Ltd., Third edition, London.

5. Chenery, H B. and Taylor, L., (1968), “Development Patterns Among Countries Overtime”, Review for Economics and Statistics,
Vol. 50, No. 4, pp. 391-416.

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6. Desai, Bhupat. M. and N.V. Namboodri. (1992), “Development of Food Processing Industries”, Economic and Political weekly,
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8. Government of India (1993), Indian Agriculture in Brief, Ministry of Agriculture, 24th edition, p. 84.

9. Johl, S. S. (2011), “Sustainable inclusive growth: Need to focus on rural economy”, The Tribune, January, 30.

10. Kachru, R. P. (2006) www.agricoop.nic.in/Farm%20Mech.%20PDF/05024-06.pdf

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in India”, The Indian Economic Journal, Special Issue on Role of Non-Farm Sector in Rural Development, December.

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Pacific Journal of Management, Vol. 10, No. 2, pp. 57-72.

13. Ministry of Food processing Industry (2006), www.mofpi.nic.in.

14. Mukherji, Joydeep (2006), Economic Growth and India’s Future, Occasional Paper No. 26, Center for the advanced study of
India, University of Pennsylvania (Mimeo), Philadelphia, March.

15. Singh, Sukhpal and V. Vyasulu, (1990), “Growth and Structure of Food Processing Industry in Punjab in the Eighties”, Indian
Journal of Agricultural Economics, Vol. 45, No. 4, pp. 457-467.

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17. Vorley, Bill, Mark Lundy and James MacGregor (2009), “Business Models That Are Inclusive of Small Farmers”, in Da Silva
Carlos A, Doyle Baker, Andrew Shepherd, Chakib Jenane and Sergio Miranda-da-Cruz (ed.) Agro Industries for Development,
The Food and Agriculture Organization of the United Nations and The United Nations Industrial Development Organization
Publications, Rome, pp 186 – 223.

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18. Wilkinson, J. and Rudi Rocha, (2009), “Agro-industry trends, patterns and development impacts” in Da Silva Carlos A, Doyle
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19. World Bank (2008), World Development Report 2008: Agriculture for Development, Washington, DC.

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APPENDIX

Industry No. NAME OF THE INDUSTRY


151 Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats.
152 Manufacture of dairy product
153 Manufacture of grain mill products, starches and starch products, and prepared animal feeds
154 Manufacture of other food products
155 Manufacture of beverages
160 Manufacture of tobacco products
171 Spinning, weaving and finishing of textiles.
172 Manufacture of other textiles
173 Manufacture of knitted and crocheted fabrics and articles
181 Manufacture of wearing apparel, except fur apparel
182 Dressing and dyeing of fur; manufacture of articles of fur
191 Tanning and dressing of leather, manufacture of luggage handbags, saddlery & harness.
192 Manufacture of footwear.
201 Saw milling and planing of wood
202 Manufacture of products of wood, cork, straw and plaiting materials
210 Manufacture of paper and paper product
221 Publishing
222 Printing and service activities related to printing

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