Policy & Governance

Mohammad Anas Wahaj | 14 aug 2016

According to a research paper by McKinsey Global Institute titled, 'India's Ascent: Five Opportunities for Growth and Transformation' [Authors: Noshir Kaka; Anu Madgavkar; Rajat Gupta; Shirish Sankhe; Jonathan Woetzel; Jacques Bughin; Ashwin Hasyagar; Shishir Gupta], there are five areas that could have a substantial impact on India's economy - (1) From poverty to empowerment: Acceptable living standards for all (2) Sustainable urbanization: Building India's growth engines (3) Manufacturing for India, in India (4) Riding the digital wave: Harnessing technology for India's growth (5) Unlocking the potential of India's women. But the paper suggests that this will require leaders at all levels - local, state and national - to adopt new approaches to governance and provision of services. Moreover, the government agencies must ramp up their capabilities to meet the enormous challenge. It's been 25 years since the economic liberalization process got started and India has been able to improve living standards of its citizens, but there is lot more to be done. The report explains, 'It (India) offers attractive long-term potential, powered largely by a consuming class that we expect will more than triple, to 89 million households, by 2025. The challenge for Indian policy makers is to manage growth in such a way that it creates the basis for sustainable economic performance. India's transformation into a global economic force has yet to fully benefit all Indians.' It further says, 'To achieve its full potential, the country will need to address deprivation using a new set of parameters that address quality of life and access to basic services. This is certainly within India's capacity, but it will require policy makers to promote an agenda that emphasizes job creation, growth-oriented investment, farm-sector productivity, and innovative social programmes so that the benefits actually reach the people who need them.' Read on...

Livemint: Five areas that could have an impact on India's economy
Author: Pretika Khanna

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Mohammad Anas Wahaj | 18 jul 2016

According to the latest CII (Confederation of Indian Industry) survey of 200 Indian firms of varying sizes, the Business Confidence Index rose to 57.2 points in April-June of FY17, compared to 54.1 in the previous quarter. Indian companies are more confident in the first quarter of the current financial year about the macroeconomy and their own companies than any of the previous six quarters. But excess capacity is putting the brakes on these companies to increase their investments. Survey found the following key concerns of the Indian companies - Weak global recovery; Low consumption demand; High borrowing costs; Lack of political consensus on economic reforms. CII said, 'So far this year, price pressures have been on the rise due to increasing food and fuel costs and in expectation of the salary and wage increase of central government employees under the 7th Pay Commission. However, a normal monsoon may provide some relief from food inflation in the latter half of the year.' About 43% attributed the recovery in corporate sector to increased government spending, while 41% of the respondents attributed this recovery to increased consumption demand (private consumption expenditure). Read on...

Business Standard: India Inc upbeat on economy, higher profits
Author: Indivjal Dhasmana

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Mohammad Anas Wahaj | 14 jun 2016

According to the Asian Development Bank (ADB) report, 'Scaling New Heights: Vizag-Chennai Industrial Corridor, India's First Coastal Corridor' (Authors - Sabyasachi Mitra, Rana Hasan, Manoj Sharma, Hoe Yun Jeong, Manish Sharma, Arindam Guha), the service sector has been a driver of the Indian economy but the country needs to expand its manufacturing base - through initiatives like Make in India and the development of economic corridors - if it hopes to reach the next level of growth. Here are 12 main things to know about Indian economy, manufacturing and 'Make in India' - (1) India is the world's third largest economy. (2) Service sector is main driver of economic growth and contribute substantially to GDP. (3) India major exporter of IT, BPO, & software expertise through skilled workers. (4) Service sector employs less than 1/3rd of labor force. (5) India's manufacturing has lagged. Only 17% of GDP, while Malaysia has 24% and Thailand has 33%. (6) Manufacturing sector lags due to bad infrastructure, complex regulations, limited finance and inadequate supply of skilled workers. (7) Indian government recognizes that to spread benefits of economic growth, manufacturing sector need to be strengthened. (8) India seeks to increase manufacturing's share to GDP to 25% and create 100 million jobs within a decade. (9) Indian government is promoting 'Make in India' initiative and trying to attract global firms for investments through tax incentives and simplified regulations. (10) India is promoting manufacturing through development of economic corridors, routes along which goods and people move. (11) Delhi-Mumbai Industrial Corridor is the India's first and most advanced econoic corridor. (12) In line with 'Make in India', Vizag-Chennai Industrial Corridor is being developed as the first coastal economic corridor. Read on...

ADB.org: Manufacturing and Make in India - 12 Things to Know
Author: NA

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Mohammad Anas Wahaj | 04 jun 2016

The Nikkei Services Business Activity Index, which maps the services sector activity, fell from 53.7 in April to 51.0 in May, pointing to a slight expansion in business activity which has been the weakest since last November. A reading above 50 represents expansion, while one below 50 means contraction. While, the Nikkei India Composite PMI Output Index, which maps both manufacturing and services sectors, fell to a six-month low of 50.9 in May, from 52.8 in April. According to Pollyanna De Lima, economist at Markit, 'Latest PMI (Purchasing Managers Index) numbers raise doubts about the effectiveness of economic and monetary policies. The gloomy growth picture will be a concern to policymakers and will raise the chances of further cuts in interest rates by the Reserve Bank of India (RBI). This would be supported by subdued inflationary pressures, with May data pointing to weaker increases in both costs and charges.' Read on...

The Financial Express: Services sector contracts for 2nd straight month in May
Author: NA

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Mohammad Anas Wahaj | 20 may 2016

India's healthcare is an opportunity that has room for growth for all - public or private, for-profit or non-profit, foreign or domestic entities. According to the latest CII-KPMG report, Indian healthcare sector is estimated to reach US$ 160 billion in 2017, accounting for about 4.2% of GDP. It is further expected to grow to US$ 280 billion by 2020. India currently spends only 1.05% of GDP on public health. Over the years, governments have tried to develop policies and have taken steps to provide better healthcare for its citizens. But India's large size, huge population (1.25 billion) and ineffective implementation at various levels, has created lop sided infrastructure and uneven development in healthcare. While bigger towns and cities have developed state of the art healthcare facilities, the rural part has lagged behind on multiple counts. Inspite of all the challenges, India is taking a stride into the next phase of healthcare, riding on technological advances, new financial models and corporatization of hospitals. Timely provision of healthcare assistance is the key to save cost and save lives. Multipronged strategy is the need of the hour. Technology, skilled and trained medical professionals, substantial investment and effective execution of best practices will help India provide what the today's citizens expect from the growing economy. Read on...

ilmeps/read: India's Healthcare - Overcoming Challenges and Moving into the Future To Provide Better Health and Save Lives
Author: Mohammad Anas Wahaj

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Mohammad Anas Wahaj | 17 may 2016

India's educational institutions need to ramp up their focus on research and innovation, in addition to quality of teaching, to improve their global rankings and stand at par with world's leading institutions. According to Prof. C. Raj Kumar, Founding Vice Chancellor of O. P. Jindal Global University and Dean of Jindal Global Law School, 'The reason why Indian higher education institutions constantly fail to feature in the annual world university rankings is because we have failed to appreciate the inter-disciplinary approach in higher education. In India, the gross enrolment ratio is less than 20% and the aspiration is to increase this to 30-40% in the next decade or so. Also, there is a high level of distrust between the government and the providers of higher education. We have a lot to learn for institution-building and there is a need for emphasising 'Making of India' rather than Make in India.' He further suggests, 'Widening the reach of education in the country, promoting research and world-class training programmes for academic administrators are some key measures needed to create a sustainable future for the country and its citizens.' Read on...

The Hindu: 'Making of India' is more important
Author: Tabu Agarwal

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Mohammad Anas Wahaj | 30 apr 2016

India's demographic dividend will reap full benefit only when it successfully nurtures its young population through integrated actionable strategies related to skills development, job opportunities in diverse areas and creating entrepreneurship ecosystems. The latest Asia-Pacific Human Development Report points towards challenges that India faces regarding availability of employment to the increasing population. The report released by United Nations Development Programme (UNDP) said that between 1991 and 2013, the size of the 'working age' population increased by 300 million while only less than half (140 million) could get absorbed in the workforce, suggesting limited capacity of the Indian economy to generate jobs. The report estimated that by 2050, at least 280 million people will enter the job market in India. Moreover, according to India's Ministry of Labour & Employment data, an estimated 1 million people enter the workforce every month, while many others choose to study further. At any given point, around 30 million students are pursuing higher education in India. The UNDP report includes India into countries that have large low-income population, big agriculture sector and high rural-to-urban migration, and suggests that India can focus on specific industries, particularly in manufacturing, to create jobs considering that its manufacturing base is still small, contributing to only 15% of GDP and 11% of employment. According to Professor N. R. Bhanumurthy of National Institute of Public Finance and Policy, 'The creation of fewer jobs between 1991 and 2013 was largely because of the nature of growth the Indian economy experienced. It was mostly services-led growth with low employment intensity...The problem could be addressed if the government's effort to create more manufacturing jobs through programmes such as Make In India and Startup India fructifies.' India's large informal sector, which accounts for 84% of current jobs, adds to the workforce complexity and resulting challenges. The report suggests that measures need to be taken to tackle issues and concerns related to informal employment. The measures could include universal registration of workers; effective implementation of existing labour laws; formal binding guidelines for contracts between employers, recruiters and workers; reform and harmonization of major labour laws applicable to the industry; and reform of social security laws to allow more effective implementation. Read on...

Livemint: India to see severe shortage of jobs in the next 35 years
Author: Asit Ranjan Mishra

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Mohammad Anas Wahaj | 20 apr 2016

India's healthcare landscape is undergoing continuous transformation. Although there is substantial reduction in IMR (Infant Mortality Rate) and MMR (Maternal Mortality Ratio), but at the same time rising cost of healthcare for its citizens is a cause of concern. Public health spending has been reduced by government from 1.47% of GDP in 1986-87 to 1.05% in 2015-16. According to Vandana Prasad, national convener of Public Health Resource Network, '...We have made gains in maternal and child health by establishing public health systems in rural areas...' Health surveys by National Sample Survey Organization (NSSO) show that Indians are now more dependent on private healthcare and this trend is clearly visible if the figures of 42nd and 71st NSSO reports are compared - 60% availed public health services in 1986-87 and remaing went for private, while only 41% utilized public health system in 2015-16. Prof. Rajesh Kumar of Post Graduate Institute of Medical Education and Research (PGIMER) Chandigarh, says, 'Out-of-pocket expenditure is the main cause of worry for the patients. A number of people fall from above poverty line (APL) category to below poverty line (BPL) category because of this. Nearly 70% of out-of-pocket expenditure is due to medicines...' Ravi Duggal, health economist at International Budget Partnership, points out how reduction in budgetary allocation to health by government affects public health system. He says, 'What this under-financing did was to reduce the credibility of public health institutions among general people. And doctors and nurses left the public health system, creating huge vacancies in primary health centres and public hospitals.' Other health-based challenges that India faces include the increasing burden of both communicable and non-communicable diseases. According to a 2014 report by the World Economic Forum and Harvard School of Public Health, the economic burden of lifestyle diseases like heart diseases, stroke, pulmonary diseases and diabetes, account for about 40% of all hospital stays and roughly 35% of all recorded outpatient visits. Read on...

Livemint: The changing pattern of healthcare in India
Authors: Jyotsna Singh, Nikita Mehta

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Mohammad Anas Wahaj | 05 apr 2016

Globally, women entrepreneurs are trying to find their place in the male dominated bastions of the private enterprises. In some societies they get equal opportunities to work their ways to succeed but in some others they have to continuously struggle to survive, as they are ignored and their quest is hindered and restricted. Even though India provides sufficient support for women to make their mark in entrepreneurship, but the recent numbers released by India's Ministry of Statistics and Programme Implementation (MOSPI), paint a different picture. It should be a cause of worry as gender equity in all spheres is on India's inclusive agenda. Following are some highlights from the 'All India Report of Sixth Economic Census' by MOSPI on the state of women entrepreneurs - Women constitute only 13.76% (8.05 million) of the total entrepreneurs (58.5 million); Out of these entrepreneurs, 2.76 million women (34.3% of the total entrepreneurs) work in agriculture sector whereas 5.29 million females (65.7% of the total entrepreneurs) work in non-agricultural sectors; Among the states, the largest share in number of establishments under women entrepreneurship is of Tamil Nadu (13.51%) followed by Kerala (11.35%), Andhra Pradesh (10.56%), West Bengal (10.33%) and Maharashtra (8.25%); Average employment per establishment for women owned establishments is 1.67. Read on...

Governance Now: Fact sheet - Women entrepreneurs in India
Author: NA

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Mohammad Anas Wahaj | 03 mar 2016

Harvard University academics, Prof. Mark R. Kramer and Prof. Michael E. Porter, introduced the concept of 'Creating Shared Value (CSV)' in HBR (2011), as an approach that takes into account social problems which intersect with businesses and makes it a major part of the core business strategy of a company. In the context of India the approach is much more relevant as it is still struggling with numerous social issues like poverty, illiteracy, unemployment, health etc. The academics feel that Indian businesses are still missing something in their view of long-term sustainabile business models. While speaking at 'Shared Value Summit 2015' in India, Prof. Kramer said, 'You cannot have a successful business in a failing society...for the CSV model to become a part of corporate hygiene anywhere needs major mindset change where we embrace a problem solving approach that goes beyond thinking what we can do in our company alone to also what we can do for society that we operate in.' He further explains that, 'CSV doesn't replace CSR and philanthropy, but can be in addition to them, such that businesses can find new opportunities for competitive advantage by beginning to think about these social issues as part of their overall corporate strategy.' Read on...

Business Insider: Philanthropy and CSR are fine, but Harvard senior fellow Mark Kramer sees CSV as the way forward for a growing and evolving India
Author: Anushree Singh

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