Issues facing India

Naxalism
Terrorism

Corrupt Media

Unemployment

Infrastructure
Environmental
degradation

Crimes against women

China

Quality
Qualityof
ofEducation
Education
Dependence on
Agriculture

Business
BusinessEnvironment
Environment

Inefficient Police
Slow Judiciary
Ineffective
Ineffectivesystem
systemof
of
Justice
Justice

Poverty
Poverty

Population growth

Over Regulation!
Votebank Politics

Corruption
Corruption

As things stand...
Poor Business
Environment

Unemplyment

Poor Implementation
of Govt. Policies

Poor Educational
standards

Political control over

Govt. Policies

Poor Agricultural
Productivity
Status of Women

Corruption

Ailing
Judicial system

Poverty

Agenda

Political Leadership
Business Environment
Poverty
Education
Law and Order

Global ranks
Per capita GDP: 141
Human Development Index: 136
Ease of doing business Index: 134
Corruption Perception Index: 94
4th most dangerous place for women (after
Afghanistan, Congo, and Pakistan)

Political Leadership

India grows despite and

not because of the
Government!

Political Leadership
Control over executive and judiciary
Populism inherent to Democracy
Corruption
Electoral System
Coalition Dharma

Control over Executive and Judiciary

Civil Services
CBI
Vigilance
Police
Issues with Judiciary

Populism inherent to Democracy

Corruption: Can it be solved?

Judicial & Police reforms and Independence of
the Anti-corruption wings
Privatization
RTI
Use of IT
Initiative by private players
Income tax reforms
Simplification of the laws, lesser role of
beureaucracy.
Protection to whistle blowers

Political Leadership: Electoral System

Coalition Dharma
Ideological differences fractured policy
debate
Blackmail
Uncertain fate of the govt

Representation of People Bill, 1951

that should be "torn and thrown out".

Representation of People Bill, 1951

that should be "torn and thrown out".

Business Environment

Ease of

DB 2013 rank

Doing Business (Overall Ranking)

132

Starting a Business

173

Dealing with Construction permits

182

Trading across Borders

127

Enforcing contracts

184

Resolving Insolvency

116

Growth rates of India and China

Growth rates of China, S. Korea, Taiwan, India
Infrastructure growth

Poor Infrastructure
Growth rates of China, S. Korea, Taiwan, India
Infrastructure growth

Slow Reform Process

Refrain from touching politically sensitive

areas
Land Acquisition New LARR Policy, 2013
Labour Laws
Tax rates - GST
FDI in Multibrand Retail

Divergent State Policies

Example: West Bengal / Gujarat / Kerala /
Maharashtra / MP / UP / Bihar
Difference in the style of functioning leads to
different growth trajectories.

Business-politician Nexus
Business control over
policy making, media,
implementation etc.
Creates

Bureaucratic Inefficiency

Scale of implementation
Performance measurement metrices
Political control
Ill conceived policies
Corruption

Business Environment: Government

Initiative
New R&R Policy
Thrust areas/sectors, priority sector lending
Creating infrastructure through PPP, BOT, FDI
etc.
Tax holidays, single window clearance
Micro-finance

Land Acquisition, Rehabilitation and

Resettlement Policy, 2013
Heavily loaded in favour of land owners
Huge mark up to the historical market price
to determine compensation amounts
Numerous entitlements to landowners
including permanent job and upfront payment
Prohibiting the use of fertile agricultural land
(beyond 5% per district) may be counter
productive.

Socialism is the destiny of any

society. But it must pass through
Capitalism first.

Agenda
Poverty
Business Environment
Education
Political Leadership
Law and Order

Poverty
Population below poverty line: 29.8%
World Hunger Index Rank: 94 (of 119)
43% Indian children under 5 are
underweight and 58% stunted as of 2008 the highest in the world

Sector wise contribution to GDP

Sector

Employment
(%)

Share of GDP
(%)

Primary

51

17

Secondar
y

22

26

Govt Initiative: Subsidies

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

Opportunity cost of
money
PDS losses
Market distortions
Inclusion/exclusion
errors
Environmental impact

Subsidies in India: Alternative

Direct Benefits Transfer Scheme

Bolsa Familia Programme

Implementation
UID Programme
Aadhaar Integration, ERP Integration and
Integration with nodal bank and payment
gateways

Subsidies in India: Alternative

Direct Benefits Transfer Scheme
Conditional Cash Transfer
Bolsa Familia Programme
Implementation
UID Programme
Aadhaar Integration, ERP Integration and
Integration with nodal bank and payment
gateways
Direct transfer of Subsidy through state
govt followed by UID based benefit
transfer to the targets

DBTS: Risks
Proper Identification of beneficiaries
Addressing the liquidity constraint
Price indexing of the subsidies
Controlling the overall scale of expenditure
Black marketing

Govt Initiative: Food Security Bill

Provision of subsidized food grain for 67% of

the population (75% rural and 50% urban
population to be covered)
To provide Rice, wheat and coarse cereal at Rs.
3, 2 and 1 respectively.

The most optimistic estimates put the cost of

the scheme to Rs. 1.3 lakh crore per annum
(11% of the net expenditure)

Food Security Bill: Critique

Do we need it?
How are we going to fund it?
Impact on other items?
Can we deliver?
Isn't it too obvious?

Govt Initiative: Food Security Bill

Political implications
Public distribution system
Cross Subsidy

Govt Initiative: MGREGS

"the largest and
most ambitious
social security and
public works
programme in the
world"
Issues
Net value add
Impact on the job
market
Impact on the
budget

Poverty: Summary
Poverty and Unemployment go hand in hand.
Govt. schemes for poverty alleviation focus
on creating jobs & subsidies in agri & other
produces.
Govt schemes are marred by ill-conception,
scale of implementation and corruption.

Education
Literacy rate: 74% (82% for men and 65% for
women) (world average: 84%)
Only 15% of Indian students reach high
school, and just 7% graduate
Consistent share of at least 3% in the budget
spend since freedom.

Access to Education

Right to Education Act

Education

is the fundamental right of

every child between the ages of 6 and 14
Private schools to reserve 25% of seats to
children from poor families
It prohibits all unrecognized schools from
practice
No donation and no interview for
admission
No child shall be held back, expelled, or
required to pass a board examination until
the completion of elementary education.

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

Teacher student ratio

Balance between acads and extra-curricular

activities

Rote based teaching

Skill development
75% of technical & 85% of general graduates are
unemployable by industries. (WSJ)
No Indian university appeared in top 200 (including the
IITs). (QS World University Rankings (sept 2011))
The number of students writing CAT 2013 is 2 Lakh (for
3500 seats), GATE 2013 is 12 lakhs (for less than 500
seats), over 5 lakh students for IITJEE 2013, 7.5 lakh for
NEET 2013 etc.

Education: Important issues

Fee and Funding
Pvt participation and degree of control
Attracting foreign universities
Limited job opportunities post graduation
Adult Education Literacy vs Education

Education: Summary
The govt has spent a lot of money on Literacy
but to not much avail.
The policy is misdirected Education and not
Literacy should be the target.
Focus on employability and alternately
creating more employment opportunities is
the ultimate solution to the problem.

Agenda
Poverty
Business Environment
Education
Corruption
Law and Order

Law and Order

Police
Judiciary
Status of women

Police
System of policing is governed by "Police Act
of 1861"
Police-population ratio of 120 against global
avg. of 270 per one lakh

An average of 50 transfers every month in a state that has around

350 IAS officers...43 IPS officers have been transferred 40 times in
their career.
the bureaucrats should work in close coordination with party
leaders or face the music.
- State of affairs in UP
Read article A hell hole for Civil Servants by Tehelka

Police Reform
1.Minimum tenures for senior police offices
(Station Inspector upwards).
2.Setting up of a body to decide transfers,
postings, promotions and other service related
matters of police officers.
3.Police Complaints Authorityat state level to
inquire into public complaints against police
officers.
4.Increase in the funding/budgetary allocation for
the Police department.
5.Separate the investigation and law and order
functions of the police.
6.Greater integration of various arms of
investigation.

Judiciary
More than 3.7 Crore cases pending at various
levels of courts (district, high and Supreme)
High pendency levels at the quasi judicial
forums (like MRTP commission, consumer forums, Company
Law Board, Administrative tribunals, taxation tribunals etc) .

Justice delayed is justice denied.

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

Judicial Reforms

Simplification of the court procedures

Service of summon, recording of evidence,
arguments, decision
Suitable changes to categories of laws with high
pendency
Dishonored cheques, Motor Accident, Land
acquisition, maintenance to dependents
Compounding/amnesty schemes for penalty
related offences
Alternative dispute resolution mechanism
Lok Adalat, pre-litigative redressal, expert
tribunals and regulators,
Fast-track courts

Use of IT

Status of Women
Foetecide (sex ratio: 941; 914 for children
below 6 years),
Discrimination (male vs female literacy rates)
A crime against a women is committed every
three minutes, a women is raped every 29
minutes, a dowry death occurs every 77
minutes - National Crime Records Bureau
Causes

Social: Justice and policing, Mindset (Patriarchy,

Tradition, Marriage)
Economic: Lack of job opportunities, Limited family
income
Biological: Nature of work, maternity, self-defense

Government Initiative
Woman Reservation Bill (pending for over 4
years)
The sexual harassment of Women at
workplace Act, 2013
Protection of Women from Domestic Violence
Act, 2005
Justice JS Verma Committee report and
Nirbhaya Act (Criminal Law Amendment Act,
2013)
Women empowerment through Self Help
Groups, Microfinance, reservation in
education etc.

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