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South Asia

What’s holding back India’s automotive sector?

Priyam Saraf's picture

For several decades, manufacturing in the automotive sector has made a strong contribution to spurring national growth, to promoting technology acquisition, and to raising incomes for workers across skill levels in developing economies as well as in developed nations. In India – the world’s sixth-largest producer of cars, where the automotive sector has been growing but at well below its tremendous potential – productivity levels would need to increase rapidly. A wave of autonomous functionality in vehicles and other technology-driven disruptions are not far away with the involvement of tech giants like Google, Tesla, and Uber. This makes the need to improve productivity in order to respond quickly to changing environments even more critical for traditional automakers. 

Some long-awaited reforms in India to improve automotive manufacturing performance came through this year. In July, the Government of India implemented a unified Goods and Services Tax (GST) regime to replace the multiple taxes that had been levied, in the past, by the state and central governments. This makes for a more integrated market, with uniformity in tax rates where automakers will be helped by easier compliance, the removal of cascading effect of taxes and the reduction of the costs of doing business. Reinforcing this, the union budget allocation in February allows for more investments in roads and highways, farm-friendly policies and income-tax reform for the middle class. Those steps will increase demand for small passenger vehicles and for the farm-equipment segment. This is all good news for the automakers in India.

Still, much more needs to be done to increase overall productivity in this job-creating and technology-rich sector. According to a recently published report by the World Bank Group, entitled “Automotive in South Asia: From Fringe to Global,” productivity (measured by value added per worker) in India’s auto sector remains less than one-third the level of China. From 1993 to 2004, the growth rate of Total Factor Productivity in China’s automotive sector was 6.1 percent per year, compared to only 1.1 percent in India. The growth rate of labor productivity was 9.8 percent per year in China, compared to 3.1 percent in India. Even though India has been increasing production of units at 11 percent to 15 percent per year (from 2005 through 2015) , it could do much better on improving productivity levels.

How can digital technology transform lives and improve opportunities in Bhutan?

Yoichiro Ishihara's picture
Tech Park
The recently opened Thimphu tech park – Bhutan’s first IT park -

The Kingdom of Bhutan is a landlocked country located high in the eastern Himalayan mountain range with its population 760,000. Up until about 20 years ago, the country was isolated from the world; Bhutan’s first ever television broadcast occurred in 1999. Since then, information communications technology (ICT) has made rapid advancement. Mobile subscriptions increased from 0.4 per 100 people in 2003 to 87 in 2015. The proportion of people using the internet have increased from 0.1% in 1999 to 40% in 2015. Today, all 20 districts and 201 (out of 205) sub-districts are connected through fiber optic cables.

The World Bank’s 2016 World Development Report on “
Digital Dividends” argues that digital technologies have boosted growth, expanded opportunities, and improved service delivery. Use of ICT for development is especially applicable to small states with populations of less than 1.5 million. Another report, “World Bank Group Engagement with Small States” finds that ICT investments can help reduce economic isolation, lessen barriers to trade, promote tourism, and improve mobility. These messages are highly relevant to Bhutan today.

The Government has enthusiastically adopted the use ICT to improve its services to its citizens as described in Bhutan ICT Roadmap and Bhutan E-Government Masterplan. The Government to Citizen (G2C) program, launched in 2005, provides a one-stop-shop for more than 100 services such as procuring a passport. The national ePayment Gateway Infrastructure, established by the Royal Monetary Authority (RMA), the central bank, has enabled citizens to pay for some public services online. Recently, the National Land Commission (NLC) launched eCitizen Portal - an online one-stop shop for transferring property titles online. This has reduced the number of days to transfer ownership of a property from 90 days to 62 days in the capital, Thimphu. More importantly, the NLC is reaching out to the private sector to seek feedback on how to improve its usability by piloting a feedback survey using an Interactive Voice Response (IVR) tool for the first time in Bhutan. The government has also introduced an electronic government procurement system (e-GP) to make optimal use of resources. Given the size of the budget (exceeding 30 percent of GDP), the adoption of e-GP will contribute to effective use of public resources. The World Bank Group has been supporting these efforts through various instruments such as the second Development Policy Credit: Fiscal Sustainability and Investment Climate, which helped get the eCitizen Portal off the ground.

Is technology the way forward for addressing mental health among youth?

Varalakshmi Vemuru's picture
After an accident at his workplace, Bhoomi, a 26-year-old from rural Tamil Nadu, India, lost interest in work and isolated himself from everyone. His neighbors were at a loss to understand the change in his behavior. He was labeled a “lunatic,” which worried his parents and propelled them to seek help.
 
Mental illness or disability can be a debilitating experience for an individual as well as his or her family. People not only have to deal with the physical and biological impacts of an illness, but also with the social and cultural stigma that accompanies it.
 
This was what Bhoomi and his family went through before they benefited from the Tamil Nadu government’s Mental Health Program (TNMHP).

Can small grants, training, and mentorship for micro-entrepreneurs create jobs in Afghanistan?

Pratap Sinha's picture
The NATEJA project supports entrepreneurs like Nooria to start new business. "With support from NATEJA, we were able to purchase the required equipment and
raw material to weave the carpets ourselves," said Nooria. Photo Credit: Rumi Consultancy/ World Bank


As the world marks International Youth Day on August 12, many in Afghanistan, especially the youth, strive to find better ways to make a prosperous future for themselves. According to the United Nations Population Fund, about 63 percent of Afghans are under 25 years of age, reflecting a steep pyramid age structure whereby a large cohort of young people is slowly emerging. Yet, young people in Afghanistan face significant challenges in health, education, employment, and gender inequality.

To tackle these challenges, the Ministry of Labor, Social Affairs, Martyrs and Disabled is targeting youth with low education in rural and semi-urban areas through a pilot micro-grants scheme to support aspiring entrepreneurs in the face of low growth and dim job creation prospects in the private sector. The scheme is implemented under the Non-Formal Approach to Training, Education, and Jobs in Afghanistan (NATEJA) project financed by the Afghanistan Reconstruction Trust Fund (ARTF).

When I saw Fariha, 23, during her selection interview for the micro-grant scheme, she was sceptical of receiving any government support, but confident about her beauty salon idea. It was a dream come true when she got the news of the micro-grant of $500. Fariha had learnt her skills first as a trainee at a beauty salon. After four years working there, she used the grant money to invest in the business and is now a partner and manager in the salon. “I did not earn enough as a trainee, but now I am a partner. It is a good job and it is getting better,” she says.

As a NATEJA grantee, Fariha attended a business training course to learn basic accounting, marketing, and key tips to start a business as a woman. She was also very happy to receive a pictorial, practical, and illustrative business start-up booklet at the training, given her low level of education.

Elephants are calling for help: Will you answer?

Claudia Sobrevila's picture
Jonathan Pledger/Shutterstock

By the end of today, 96 African elephants will have been killed. Due to this rate of poaching, the current African elephant population is estimated to have fallen to just 415,000 (IUCN 2016) and the situation is even worse for Asian elephants with an estimated population of about 50,000 (IUCN Red List). This is extremely heartbreaking because not only do elephants have intrinsic value but they are also one of the few flagship and keystone species. If they disappear, the entire ecosystem will collapse.

As we celebrate World Elephant Day on August 12th, I reflect upon what I have learned and realize that to be able to save the largest terrestrial mammal on Earth, we need to protect their habitats, stop the violent poaching and trafficking, support communities that are affected by human-elephant conflicts, and stop the demand for ivory.

Karnataka Becomes India’s First State to Safely Dispose Biomedical Waste at all Public Health Facilities

Suresh Mohammed's picture

What happens when infected needles, syringes, plasters, surgical gloves and intravenous sets are disposed of carelessly? Well, for a start, they spread hepatitis and HIV, not only among the poor rag-pickers who unsuspectingly handle them, but also infect all the waste around, multiplying the hazard manifold.  Then, when the waste is not properly incinerated, it causes further damage, polluting the very air we breathe. Liquids wastes are particularly harmful; they can leach into the soil and contaminate the water supply, with often devastating consequences.

Yet it is heartening to see how a few dedicated individuals can make a difference.
 

Nurses using needle cutter to destroy used syringes

Providing better healthcare in Afghanistan – A view from the field

Fahimuddin Fahim's picture


Although I have extensive project management experience in Daykundi Province, the scale and impact of the System Enhancement for Health Action in Transition (SEHAT) Program is truly inspiring—for example, the 39 centers that deliver the Basic Package of Health Services (BPHS) together serve over 77,000 outpatients per month. In October 2016, these centers managed the delivery of 615 babies, with as many as 69 deliveries in Temran Basic Health Center alone.
 
In fact, when it comes to female health, SEHAT has ensured that there is at least one female staff member in every health center. This has partly been possible because of the successful implementation of community-level education programs, such as the Community Midwifery Education (CME) and Community Health Nursing Education (CHNE). The program has also strengthened community-based health care by setting up health Shuras (councils) in all locations covered by SEHAT and implemented specific controls on qualifications and credentials of health workers.
 
SEHAT is a program of the Ministry of Public Health (MoPH), supported by the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and the Afghanistan Reconstruction Trust Fund (ARTF), in partnership with multiple donors. An NGO, PU-AMI, was contracted by MoPH between 2013 and June 2017 to deliver BPHS in Daykundi, in line with national health goals outlined by the ministry. These goals include reducing mother and child deaths and improving child health and nutrition. Thus, the program focuses on increasing access, building capacity, strengthening coordination, promoting use of monitoring and evaluation data, and enabling better support for pharmaceutical supplies.

Twitter chat: Economic benefits of environment management in Sri Lanka

Ralph van Doorn's picture

Join us for #SLDU2017: Economic Benefits of Environment Management. This Twitter chat will be hosted by World Bank South Asia

What’s happening?

Join us for #SLDU2017: Economic Benefits of Environment Management. This Twitter chat will be hosted by World Bank South Asia (@WorldBankSAsia) in collaboration with the Institute for Policy Studies IPS (@TalkEconomicsSL).
 
When is it?
August 21, 2017 from 5.30 – 7.30 pm
 
Unpacking #SLDU2017
The chat will explore the findings of the Sri Lanka Development Update (SLDU), published this June.
 
I look forward to engaging with you together with a panel from different areas of expertise.
 
We’ll be discussing priority reforms with a focus on how Sri Lanka can better manage both its business and natural environment to bolster economic growth and sustain development.
 
In recent years, natural disasters have left parts of this island nation devastated, exacting a significant economic, fiscal and social toll. The SLDU identifies other challenges as well, pressing the case for fiscal consolidation, a new growth model, improved governance and programs to buffer against risk.
 
The latest update cautions against adopting piecemeal solutions, noting that the challenges facing the island nation are inter-linked and require a comprehensive and coordinated reform approach.
 
In the end, we also hope this Twitter chat will allow us to learn from you as we begin our preparations for the next SLDU.
 
How can you participate?
Never taken part in a Twitter chat before? It’s simple. Just think of this as an online Q&A. @WorldBankSAsia will moderate the discussion, posing questions to panellists. You are encouraged to join in too! Follow along, retweet and engage. If you have a question, simply tweet it out using the hashtag #SLDU2017. We’ll see it and try to get you some answers.

In India, this transport engineer is racing toward the future… with German supercars

Shigeyuki Sakaki's picture
Harsh, a civil engineer from Surendranagar, the western State of Gujarat in India, proudly has a collection of supercars recently delivered from Germany. They are all brand new with sleek designs, glossy paint, and fully loaded with state-of-the-art features. One of them is a 600 horse-power monster, another is the first of its kind in India.
 
Without further ado, let's see what he has...

Providing road access to all: how India is turning a distant dream into reality

Ashok Kumar's picture
For many decades now man has been able to go to the moon. Yet down here on earth, many people are still unable to travel to nearby towns, because of the lack of decent roads. The world over, about a billion people live without access to an all-weather road. And many more have perhaps lost the access they once had because floods, heavy rains, cloudbursts, landslides and other extreme weather events have damaged the roads or they have not been maintained. Can we ever think of a world free of poverty without addressing this fundamental challenge?  
 
Let’s look at the case of India where 500,000 km of rural roads have so far been built by the country’s flagship rural roads program (PMGSY). These roads, connecting some 120,000 settlements, have already started transforming the rural areas of the country.
Photo Credit: Shaju John/World Bank


These roads form part of a core network of 1.1 million that India is seeking to build through its ongoing $35 billion PMGSY program to provide about 179,000 rural settlements with road access. The project has been designed to deliver high-quality, sustainable roads in a timely and cost-effective manner. PMGSY’s main source of funding is a special tax on diesel. Since the PMGSY began, the World Bank has been working closely with the Indian government through a series of projects and knowledge initiatives, with funding of about US$1.8 billion.


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