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Understanding the effects of the world’s largest workfare program

Klaus Deininger's picture

As the world’s largest workfare program, India’s Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS) has attracted much atten­tion. Yet its impacts on agriculture have been relatively neglected. A re­cent paper by Deininger, Nagarajan, and Singh addresses this gap by fo­cusing on the program’s effects on ag­ricultural productivity as well as labor market outcomes.

The program offers unskilled em­ployment, for up to 100 days a year per household, in projects to provide local productivity-enhancing infrastructure. Wages are set by statute, at rates that are equal for men and women and, it is hoped, not attractive enough to pre­vent effective self-targeting.

And a river runs through it

Atul Agarwal's picture

Integrating the Brahmaputra’s innumerable ferries into Assam’s wider transport network

Anyone who has visited Assam cannot help but being struck by the mighty Brahmaputra. The river straddles the state like a colossus, coursing through its heart, and severing it into two - the northern and southern banks. During the monsoon, so vast is the river’s expanse - almost 20 km in parts - that you cannot see the other side. And so fearsome can be its waters that the Brahmaputra is India’s only river to have a masculine name; all the others have feminine appellations. Yet, just four bridges, including India’s longest bridge that was recently inaugurated on its tributary the Lohit - and one more under construction - span the state’s entire 900 km stretch of river.
 
Given this formidable natural barrier, most of Assam’s towns have developed on the river’s southern flank, where the plains are wider. With little connectivity, the northern side remains cut off from the mainstream, and is largely underdeveloped.


 
What’s more, small communities who live on the river’s hundred or so inhabited islands, remain isolated. It can be quite frustrating to see a school or a medical center on the other side and not be able to get to it! Only Majuli, the world’s largest riverine island and an administrative district by itself, supports schools and some form of medical facilities for its more than 100,000 residents.

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.

Flooded rivers: taking a bird’s eye view

Zuzana Stanton-Geddes's picture
When a river swells beyond its usual patterns, the impact on its surroundings can be devastating. In 2014, 51 people lost their lives and over 20% of Serbia’s population were affected by floods when eight rivers spilled over their banks. Photo credit: Dusan Milenkovic / Shutterstock.com
Floodplains are attractive areas for development, with over 2 billion people living within the world’s 10 largest river basins. Yet, they are also at particular risk from overflowing rivers. Globally, river floods affect more than 21 million people. By 2030, due to climate change, population growth, and rapid urbanization, this number could rise to 54 million.

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).

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

Better information to improve service delivery: New evidence

David Evans's picture

Countries around the world have experimented with “school report cards”: providing parents with information about the quality of their school so that they can demand higher quality service for their children. The results have been mixed. Andrabi, Das, and Khwaja bring a significant contribution to that literature in last month’s American Economic Review with their article using data from Pakistan, “Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets.”

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.

The growing economic clout of the biggest emerging markets in five charts

Ayhan Kose's picture

Global economic growth is accelerating. After registering the slowest pace since the 2007-2009 financial crisis in 2016, global growth is expected to rise to a 2.7 percent pace this year and 2.9 percent over 2018-19.

While much has been said about better economic news from the major advanced economies, the seven largest emerging market economies—call them the Emerging Market Seven, or EM7 – have been the main drivers of this anticipated pickup.

Chart 1:

The contribution of the seven largest emerging market economies to global output has climbed substantially over the last quarter century.

The EM7 -- Brazil, China, India, Indonesia, Mexico, Russia and Turkey – accounted for 24 percent of global economic output over 2010-2016, up from 14 percent in 1990s. Although this is a smaller share than the Group of Seven major industrialized economies, the G7’s portion of global economic output has narrowed to 48 percent from 60 percent over the same time frame.
 

Contribution to global output (percent)

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