Strategy for
New India @ 75
November 2018
iii
I
ndia is on the cusp of a major transformation. Change has been in the making over the last four years.
The economy is nally moving out of the negative legacies of the past, specially the reckless credit
expansion. India has regained its position as the fastest growing large economy in the world. This is
highly commendable. However, to meet the rising aspirations of our young population, India needs to
achieve and sustain a high rate of GDP growth for the next three decades. There will be several milestones
in this long and arduous journey. The rst of these milestones will be in 2022 when India celebrates the 75th
anniversary of its independence. The government’s goal is for India to be a USD 4.0 trillion economy when we
celebrate the platinum jubilee of our independence.
Moreover, the Prime Minister has given his clarion call for establishing a New India by 2022. The ‘Strategy for
New India @ 75’ captures three key messages from the Prime Minister. First, development must become a
mass movement, in which every Indian recognizes her role and also experiences the tangible benets accruing
to her in the form of better ease of living. Collective effort and resolve will ensure that we achieve a New India
by 2022 just like independence was achieved within ve years of Mahatma Gandhi giving his call of Quit India
in 1942. The direct implication of ensuring rapid growth with inclusion is that policymaking will have to be
rooted in Indian ground realities and emphasize the welfare of all in both design and implementation.
Second, development strategy should help achieve broad-based economic growth to ensure balanced
development across all regions and states and across sectors. This implies embracing new technologies
fostering innovation and upskilling. We will have to focus on the necessary modernization of our agriculture
and mainstreaming of regions such as the North East, hilly states and the 115 Aspirational Districts. The direct
outcome of this will be improved regional and inter-personal equity and elimination of dualism that has so
far characterised our economy. We will put in place an economy that is predominantly formal, rule-driven and
facilitates investment and innovation.
Third, the strategy when implemented, will bridge the gap between public and private sector performance.
The Prime Minister has focused on putting in place a ‘development state’ in place of the ‘soft state’ that this
government had inherited. In this context, the government has focused on the efcient delivery of public
services, rooting out corruption and black economy, formalizing the economy and expanding the tax base,
improving the ease of doing business, nursing the stressed commercial banking sector back to a healthy state,
and stopping leakages through direct benet transfers and widespread use of the JAM trinity.
Preface
Strategy for
New India @ 75
iv
Efcient, transparent and accountable governance has come to be recognized as this government’s USP. This
will ensure that India will not only achieve its ambitious goals for 2022, but also go on to become one of the
two largest economies in the world by 2047, when we celebrate the centenary of our independence.
‘Strategy for New India @ 75’ has identied 41 different areas that require either a sharper focus on
implementing the agship schemes already in place or a new design and initiative to achieve India’s true
potential. Each chapter summarizes the current status of the sector, takes full cognizance of the progress
made thus far and spells out the objectives. It then identies the binding constraints and proposes measures
to address these constraints. It is our hope that this new approach will provide an inventory of readily
implementable measures for the government departments and agencies both in the central and state
governments. The focus of the strategy is to further improve the policy environment in which private investors
and other stakeholders can contribute their fullest towards achieving the goals set out for New India 2022.
We have followed a deeply participative approach in preparing the strategy. The process started with a series
of consultations with all possible stakeholders. Each area vertical in NITI Aayog had in depth consultations
with all three groups of stakeholders, viz., business persons, academics including scientists, and government
ofcials. This was followed by consultations held by NITI Aayog with seven sets of stakeholders that included
scientists and innovators, farmers, civil society organizations, think tanks, labour representatives and trade
unions, as well as industry representatives (Lists at Annex 1 and 2).
Each chapter draft was sent to the respective line ministry for their inputs, suggestions and comments.
The completed draft document was circulated to all the States and Union Territories. As many as 23 States
and 4 Union Territories sent detailed and well considered comments and suggestions. These have helped
in improving the draft by reecting state specic features in various chapters. This exercise has further
strengthened NITI Aayog’s efforts at cooperative federalism. It will also encourage us to collaborate with the
states to develop state specic development blueprints.
With these extensive consultations and inputs, the strategy reects ground realities and a collective consensus
on addressing the challenges and achieving the goals for a New India. The attempt is to present a set of ideas
that can provide the basis for a constructive public-private-personal partnership and promote centre-state
cooperation. We hope that the document will also help to build the trust required among all stakeholders for
making development into a mass movement.
I would like to thank NITI Aayog members Dr. V. K. Saraswat, Dr. Ramesh Chand and Dr. Vinod K. Paul for their
leadership and invaluable inputs at every stage of the process. This document would not have been possible
v
without the contribution of NITI Aayog CEO, Amitabh Kant and senior ofcials of NITI Aayog. I would like to
thank Additional Secretaries Yaduvendra Mathur and R. P. Gupta; Senior Advisers Sunita Sanghi and Srikara
Naik; Advisers Alok Kumar, Anil Srivastava, Anna Roy, Ashok K. Jain, J. P. Mishra, Jitendra Kumar, Maninder
Kaur Dwivedi, Praveen Mahto, Ravinder Goyal, S. S. Ganapathy, U. K. Sharma, Vikram Singh Gaur, Yogesh Suri;
Senior Consultants C. Muralikrishna Kumar, Rakesh Ranjan and Sujeet Samaddar and Ofcer on Special Duty
Sanyukta Samaddar.
This task would not have been completed without the help of a dedicated team of experts attached to the
Vice Chairman’s ofce, led by Ramgopal Agarwala and Dhiraj Nayyar. The team consisted of Urvashi Prasad,
Ranveer Nagaich, Devashish Dhar, Atisha Kumar, Chinmaya Goyal, Vaibhav Kapoor and Ajit Pai. Tara Nair
provided crucial editing inputs.
Preparing the strategy is only the rst step towards India’s economic transformation. The foresighted framers of
our celebrated Constitution have set the enormous challenge of simultaneously completing India’s triple transition
across social, political and economic elds. India is one of the very few countries that have taken on this historical
challenge of completing the three transitions together. Having successfully taken forward the social and political
transitions, India is now within sight of completing its economic transition as well. This will see per capita incomes
rising from about USD 1,900 in 2017-18 to around USD 3,000 in 2022-23. As outlined in this Strategy Document,
successfully completing our economic transition will enable us to achieve freedom from squalor, illiteracy,
corruption, poverty, malnutrition and poor connectivity for the common Indian.
By 2022, New India will provide a solid foundation for clean, inclusive, sustained and sustainable growth for
the next three decades. The ‘Strategy for New India @ 75’ reects our preparedness to make this transition. Its
recommendations are practical and detailed to facilitate time-bound implementation. All levels of government
must work together to achieve the vision of New India. Working together as ‘Team India’ will ensure prosperity
for all while protecting our environment and promoting the emergence of an innovative eco-system, propelling
India to the front ranks of the global economy.
Dr. Rajiv Kumar
Vice Chairman
NITI Aayog
vii
Introduction 1
Drivers
1. Growth 7
2. Employment and Labour Reforms 12
3. Technology and Innovation 16
4. Industry 20
5. Doubling Farmers’ Income (I): Modernizing Agriculture 25
6. Doubling Farmers’ Income (II): Policy & Governance 30
7. Doubling Farmers’ Income (III): Value Chain & Rural Infrastructure 36
8. Financial Inclusion 41
9. Housing for All 45
10. Travel, Tourism and Hospitality 49
11. Minerals 54
Infrastructure
12. Energy 61
13. Surface Transport 66
14. Railways 70
15. Civil Aviation 75
16. Ports, Shipping and Inland Waterways 80
17. Logistics 85
18. Digital Connectivity 88
19. Smart Cities for Urban Transformation 92
20. Swachh Bharat Mission 96
21. Water Resources 100
22. Sustainable Environment 104
Inclusion
23. School Education 111
Table of Contents
Strategy for
New India @ 75
viii
24. Higher Education 116
25. Teacher Education and Training 121
26. Skill Development 124
27. Public Health Management and Action 129
28. Comprehensive Primary Health Care 133
29. Human Resources for Health 137
30. Universal Health Coverage 142
31. Nutrition 146
32. Gender 150
33. Senior Citizens, Persons with Disability and Transgender Persons 155
34. Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs),
Other Tribal Groups and Minorities 161
Governance
35. Balanced Regional Development: Transforming Aspirational Districts 169
36. The North-East Region 173
37. Legal, Judicial and Police Reforms 178
38. Civil Services Reforms 183
39. Modernizing City Governance for Urban Transformation 187
40. Optimizing the Use of Land Resources 191
41. Data Led Governance and Policy Making 195
Annex 1 199
Annex 2 205
Table of Contents
ix
List of Figures
1.1 India’s real GDP growth 8
2.1 Share of workforce employed in agriculture 13
3.1 Steps taken to promote science, technology and innovation in India 16
4.1 Manufacturing as a share of GDP, 2011-12 to 2017-18 21
6.1 Price spread between farm harvest prices and retail prices for select agricultural
commodities, 2015-16 31
7.1 Additional markets required by 2022-23 36
8.1 Distribution of household savings across physical and nancial assets 42
8.2 Growth in unied payment interface (UPI) usage 42
9.1 Multi-pronged approach to resolving constraints in the ‘Housing for All’ scheme 46
10.1 Contribution of travel and tourism in India, 2016 49
11.1 India’s share in world production, 2015 55
12.1 Strategies for improving the energy sector in India 63
13.1 Total number of registered vehicles in India 66
14.1 Growth of Indian Railways,1950-51 to 2013-14 71
15.1 Passenger trafc by scheduled carriers, 2007-08 to 2016-17 75
15.2 Freight Transported by air, 2007-08 to 2016-17 76
16.1 Operating cost comparison in transporting cargo through various modes 81
16.2 Pillars of the Sagarmala programme 81
18.1 Increase in internet users and online penetration in India 88
19.1 Four paradigms to leverage Smart Cities Mission 93
20.1 Improvement in
Swachh Bharat Mission
(Gramin) coverage 97
21.1 Status on average annual water availability 100
22.1 Strategies for achieving sustainable environment 105
23.1 Gross and net enrolment ratios for elementary, secondary and senior secondary 111
Strategy for
New India @ 75
x
List of Figures
23.2 Learning outcomes from ASER survey 2016 for rural areas 112
24.1 Gross Enrolment Ratio in higher education, 2016-17 117
24.2 UGC’s graded autonomy regulations for universities 118
26.1 Workforce that has undergone formal skill training 125
27.1 Preventable risk factors are the biggest contributors to the disease burden, 2016 130
28.1 Additional services to be provided under the New India primary care system 134
28.2 Revamped primary health system for New India 135
29.1 Shortfall of specialists in government health centres compared to the
requirement based on existing infrastructure 138
29.2 Sanctioned posts of specialists vacant 138
30.1 Pillars of universal health coverage 143
31.1 Key nutritional indicators in India 146
32.1 Progress with respect to gender-related indicators 150
32.2 Female labour force participation 151
32.3 Examples of indicators that could be used for developing the gender-based
index and ranking states 153
33.1 School attendance of children with disabilities between 5-19 years 156
33.2 Literacy status of PwDs 157
33.3 Allocation and expenditure pertaining to the Department of Empowerment of
Persons with Disabilities 157
34.1 Workforce participation rate 164
34.2 Out of school children by religious group 165
35.1 Illustration of how the ADP converges stakeholders’ efforts in the prevention of stunting 171
36.1 Per capita NSDP for north-east states, 2015-16 173
36.2 Per capita NSDP for north-east states, 2004-05 174
xi
List of Tables
List of Figures
36.3 Timeline of government initiatives for the development of north-east region 175
39.1 Key strategies to improve urban governance by 2022-23 188
40.1 Land use across different uses in India, 1990-91 to 2013-14 191
41.1 Framework for achieving transparent governance 197
7.1 Gaps in cold-chain development 37
23.1 Prole of public schools with low enrolment 114
34.1 Incidence of poverty across social groups 161
34.2 Literacy rate among social groups 162
34.3 Literacy Rate among minority communities 164
35.1 Core dimensions of ADP and their weightage 171
1
O
n August 15, 2022, independent India will turn 75. In the lifespan of nations, India is still young.
The best is surely yet to come. India’s youthful and aspirational population deserves a rapid
transformation of the economy, which can deliver double-digit growth, jobs and prosperity to all.
A strong foundation has been laid in the last four years. While there is every room for condence,
there is none for complacency. A surge of energy, untiring effort and an unshakeable resolve on the part of the
government, private sector and every individual citizen can achieve this transformation in the next ve years.
Seventy years ago, similar energy, effort and resolve from all Indians freed the country from colonial rule within
ve years of the launch of the Quit India movement in 1942. Then, like now, foundations had been laid but a
committed acceleration of effort was necessary. The Prime Minister’s call for
Sankalp Se Siddhi
is a clarion call
for a radical transformation for a New India by 2022-23.
The government has to be in the vanguard of the transformation of the Indian economy. However, the
government’s role must be dened correctly. This Strategy document attempts to do this. The document is
being framed in a context where a re-imagination of governance is taking place. We need a ‘development
state’ that focuses sharply on the difcult and accountable delivery of key public goods and services. There is
an ongoing effort to achieve an optimum level of public-private partnership. Policies have been put in place
for more efcient delivery of public goods and services such as health, education, power, urban water supply
and connectivity. In this context, a deliberate effort is being made to cut red tape and end burdensome over-
regulation for promoting entrepreneurship and private investment. Also, in an effort to align the ‘Strategy
for New India @ 75’ with India’s commitment to the United Nations’ Sustainable Development Goals, each
chapter is mapped to the relevant goals. India is currently putting in place a ‘development state’ guided by the
philosophy of
Sabka Saath, Sabka Vikas
.
The purpose of this document, ‘Strategy for New India @ 75’, is to dene clear objectives for 2022-23 in a
diverse range of 41 areas that recognize the progress already made; and challenges that remain; identify
binding constraints in specic sectors; and suggest the way forward for achieving the stated objectives.
The Strategy document has disaggregated the 41 sectors under four sections: drivers, infrastructure,
inclusion and governance. The rst section on drivers focuses on the engines of economic performance – in
macroeconomic terms with chapters on growth and employment. The section also discusses strategies for
the doubling of farmers’ incomes; boosting Make in India; upgrading the science, technology and innovation
eco-system; and promoting sunrise sectors like ntech and tourism. An annual rate of growth of 9 per cent
Introduction
Strategy for
New India @ 75
2
by 2022-23 is essential for generating sufcient jobs and achieving prosperity for all. Four key steps, among
others have been spelled out for achieving this GDP growth rate. These are:
a. Increase the investment rate as measured by gross xed capital formation (GFCF) from present 29 per
cent to 36 per cent of GDP by 2022. About half of this increase must come from public investment
which is slated to increase from 4 per cent to 7 per cent of GDP. Government savings have to move into
positive territory. This sharp increase in investment-to-GDP ratio will require signicantly higher resource
mobilization efforts as elaborated in the chapter on Growth.
b. In agriculture, emphasis must shift to converting farmers to ‘agripreneurs’ by further expanding
e-National Agriculture Markets (e-NAMs) and replacing the Agricultural Produce Marketing Committee
(APMC) Act with the Agricultural Produce and Livestock Marketing (APLM) Act. The creation of a unied
national market, a freer export regime and abolition of the Essential Commodities Act are essential for
boosting agricultural growth.
c. A strong push would be given to ‘Zero Budget Natural Farming’ (ZBNF) techniques that reduce costs,
improve land quality and increase farmers’ incomes. This is a tested method for putting environment
carbon back into the land. Therefore, ZBNF allows India to signicantly contribute to reducing the global
carbon footprint.
d. To ensure maximum employment creation, codication of labour laws must be completed and a massive
effort must be made to upscale apprenticeships.
The second section on infrastructure deals with the physical foundations of growth. A lot of progress has been
made across all infrastructure sectors. This is crucial to enhancing the competitiveness of Indian business as
also ensuring the citizens’ ease of living. Three key steps, among others, are:
a. Expediting the establishment of the Rail Development Authority (RDA), which is already approved. RDA
will advise or make informed decisions on an integrated, transparent and dynamic pricing mechanism
for the railways. Investment in railways will be ramped up, including by monetising existing railway
assets.
b. The share of freight transported by coastal shipping and inland waterways will be doubled. Initially,
viability gap funding will be provided until the infrastructure is fully developed. An IT-enabled platform
would be developed for integrating different modes of transport and promoting multi-modal and
digitised mobility.
c. With the completion of the
Bharat Net
programme in 2019, all 2.5 lakh
gram panchayats
will be digitally
connected. In the next phase the last mile connectivity to the individual villages will be completed. The
aim will be to deliver all government services at the state, district, and
gram panchayat
level digitally by
2022-23, thereby eliminating the digital divide.
3
The section on inclusion deals with the urgent task of investing in the capabilities of all of India’s citizens. The
three themes in this section revolve around the various dimensions of health, education and mainstreaming
of traditionally marginalized sections of the population. While there are multiple dimensions and pathways
contained in the chapters in this section, four key steps, among others, are:
a. Successfully implementing the
Ayushman
Bharat programme including the establishment of 150,000
health and wellness centres across the country, and rolling out the
Pradhan Mantri Jan Arogya
Abhiyaan
.
b. Upgrading the quality of the school education system and skills, including the creation of a new
innovation ecosystem at the ground level by establishing at least 10,000 Atal Tinkering Labs by 2020.
c. As already done in rural areas, affordable housing in urban areas will be given a huge push to improve
workers’ living conditions and ensure equity while providing a strong impetus to economic growth.
d. Implementing strategies to achieve regional equity by focusing on the North-East region and successfully
rolling out the Aspirational Districts Programme.
The nal section on governance delves deep into how the tasks/business of government can be streamlined
and reformed to achieve better outcomes. It involves a sharp focus on ensuring accountability and a shift to
performance-based evaluation. The government will revamp its data systems and analysis so that all policy
interventions and decision-making are based on evidence and real-time data. This will yield efcient and
targeted delivery of services and justice to those who need them the most. Three key steps, among others, are:
a. Implementing the recommendations of the Second Administrative Reforms Commission as a prelude
to appointing a successor for designing reforms in the changing context of emerging technologies and
growing complexity of the economy.
b. A new autonomous body, viz., the Arbitration Council of India, may be set up to grade arbitral
institutions and accredit arbitrators to make the arbitration process cost effective and speedy, and to pre-
empt the need for court intervention.
c. The scope of
Swachh Bharat Mission
may be expanded to cover initiatives for landlls, plastic waste and
municipal waste and generating wealth from waste.
To achieve the goals of New India in 2022-23, it is important for the private sector, civil society and even
individuals to draw up their own strategies to complement and supplement the steps the government intends
to take. With the available tools of 21st century technology, it should be possible to truly create a mass
movement for development. With the
Sankalp
of all Indians, India will have
Siddhi
.
DRIVERS
7
Objectives
• Steadily accelerate the gross domestic product
(GDP) growth rate to achieve a target of about
8 per cent during 2018-23 (
note that this target
has been set to catalyse policy action and
does not represent a forecast
). This will raise
the economy’s size in real terms from USD 2.7
trillion in 2017-18 to nearly USD 4 trillion by
2022-23. Besides having rapid growth, which
reaches 9-10 per cent by 2022-23, it is also
necessary to ensure that growth is inclusive,
sustained, clean and formalized.
• The investment rate should be raised from 29
per cent to 36 per cent of GDP which has been
achieved in the past, by 2022-23.
• Exports of goods and services combined should
be increased from USD 478 billion in 2017-18
to USD 800 billion by 2022-23.
Current Situation
Economic growth in India has been broadly on
an accelerating path. It is likely to be the fastest
growing major economy in the world in the
medium-term.
The share of manufacturing in India’s GDP is low
relative to the average in low and middle-income
countries. It has not increased in any signicant
measure in the quarter century after economic
liberalization began in 1991. Within manufacturing,
growth has often been highest in sectors that are
relatively capital intensive, such as automobiles and
pharmaceuticals. This stems from India’s inability to
capitalize fully on its inherent labour and skill cost
advantages to develop large-scale labour intensive
manufacturing. Complex land and labour laws have
also played a notable part in this outcome. There
is a need to increase the pace of generating good
quality jobs to cater to the growing workforce, their
rising aspirations and to absorb out-migration of
labour from agriculture.
The positive news is that high growth rate has been
achieved with strong macroeconomic fundamentals
including low and stable rates of ination and
a falling scal decit. However, along with
macroeconomic stability, the sufcient condition for
escalating growth is to continue with the structural
reforms that address the binding constraints for a
more robust supply-side response.
Constraints
Overall, growth can be accelerated by a number
of measures across different policy areas, which
have been detailed in different chapters of this
strategy for 2022-23. This chapter focuses on the
macroeconomic drivers of growth.
Way Forward
1. Raising investment rates to 36 per cent by
2022-23
• To raise the rate of investment (gross xed
capital formation as a share of GDP) from about
29 per cent in 2017-18 to about 36 per cent
of GDP by 2022-23, a slew of measures will
be required to boost both private and public
investment.
1. Growth
Strategy for
New India @ 75
8
Figure 1.1: India’s real GDP growth
4%
5%
6%
7%
8%
9%
10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Real GDP Growth (%)
• India’s tax-GDP ratio of around 17 per cent
is half the average of OECD countries (35
per cent) and is low even when compared to
other emerging economies like Brazil (34 per
cent), South Africa (27 per cent) and China
(22 per cent). To enhance public investment,
India should aim to increase its tax-GDP
ratio to at least 22 per cent of GDP by 2022-
23. Demonetization and GST will contribute
positively to this critical effort. In addition,
efforts need to be made to rationalize direct
taxes for both corporate tax and personal
income tax. Simultaneously, there is a need to
ease the tax compliance burden and eliminate
direct interface between taxpayers and tax
ofcials using technology.
• In 2016-17, the share of government (central
and state combined) capital expenditure in
total budget expenditure was 16.2 per cent,
1
and government’s contribution to xed capital
formation was close to 4 per cent of GDP. This
needs to be increased to at least 7 per cent of
GDP by 2022-23 through greater orientation
of expenditure towards productive assets, and
minimizing the effective revenue decit.
• States could also undertake greater mobilization
of own taxes such as property tax, and taking
specic steps to improve administration of GST
to increase tax collections.
• Two areas in which higher public investment
will easily be absorbed are housing and
infrastructure. Investment in housing,
especially in urban areas, will create very large
multiplier effects in the economy. Investment
in physical infrastructure will address long-
standing deciencies faced by the economy.
Sector-specic measures are mentioned in
corresponding chapters.
• The government has taken signicant measures
to attract foreign direct investment by easing
caps on the extent of permissible stake holding
Source: Ministry of Statistics and Programme Implementation
9
and the norms of approval. By 2022-23, the
government may consider further liberalizing
FDI norms across sectors. Domestic savings
can be complemented by attracting foreign
investment in bonds and government securities.
Regulatory limits can be relaxed for rupee
denominated debt.
• The government should continue to exit central
public sector enterprises (CPSEs) that are not
strategic in nature. Inefcient CPSEs surviving
on government support distort entire sectors
as they operate without any real budget
constraints. The government’s exit will attract
private investment and contribute to the
exchequer, enabling higher public investment.
For larger CPSEs, the goal should be to create
widely held companies by ofoading stake to
the public to create entities where no single
promoter has control. This will both improve
management efciency and allow government
to monetize its holdings with substantial
contribution to public nances.
• Private investment needs be encouraged in
infrastructure through a renewed public-private
partnership (PPP) mechanism on the lines
suggested by the Kelkar Committee.
2. Macroeconomic stability through prudent
scal and monetary policies
• Sustained high growth requires macroeconomic
stability, which is being achieved through a
combination of prudent scal and monetary
policies.
• The government has targeted a gradual
lowering of the government debt-to-GDP ratio.
It will help reduce the relatively high interest
cost burden on the government budget, bring
the size of India’s government debt closer to
that of other emerging market economies, and
improve the availability of credit for the private
sector in the nancial markets.
• But even as lowering of debt and limiting scal
decit are important, the government should
be exible in its approach towards setting
annual targets based on prevailing economic
conditions. This approach is enshrined in
the existing Fiscal Responsibility and Budget
Management (FRBM) architecture that has built
in exibility in the form of adequately dened
“escape and buoyancy” clauses. Targets should
take cognizance of the stage of the business
cycle and scal decit and borrowing targets
should not be set in isolation.
• The effective revenue decit should be
brought down as rapidly as possible. Capital
expenditure incurred for the health and
education sectors, which in effect builds
human capital, should be excluded from
estimates of revenue expenditure. This will
increase government savings.
• One of the major institutional reforms of recent
years has been to statutely mandate the RBI
to maintain “... price stability while keeping in
mind the objective of growth”. Ination needs
to be contained within the stated target range
of 2 per cent to 6 per cent. Ination targeting
provides a reasonably exible policy framework
which is in line with global best practices and
can respond appropriately to supply shocks.
• Policy should be directed to minimize volatility
in the nominal exchange rate.
3. Efcient nancial intermediation
• Efcient functioning of the nancial markets is
crucial to maintain high growth in the economy.
There is a need to deepen nancial markets
with easier availability of capital, greater use
Strategy for
New India @ 75
10
of nancial markets to channel savings and
an improved risk-assessment framework for
lending to avoid a situation of large-scale non-
performing assets in the banking sector.
• Governance reforms in public sector banks require,
apart from the establishment of independent and
commercially driven bank boards, performance
assessment of executives and increased exibility
in human resources policy.
• The Gujarat International Finance and Tech
City (GIFT) should be leveraged to push the
envelope on nancial sector liberalization. It
is an opportunity to onshore trading in rupees
and other derivatives, which currently happens
outside India for regulatory reasons. If GIFT
succeeds, liberalization can be extended to the
rest of the country.
• Enable alternative (to banks) sources of credit
for India’s long-term investment needs.
The bond market needs deepening through
liberalization of regulations and continued scal
consolidation.
4. Focus on exports and manufacturing
• India needs to remain globally competitive,
particularly in the production and exports of
manufactured, including processed agricultural,
goods. The following reforms would help in
improving the competitiveness:
o A focused effort on making the logistics
sector more efcient is needed.
o Power tariff structures may be rationalized
to ensure global competitiveness of Indian
industries.
o Import tariffs that seek to promote
indigenous industry should come with
measures to raise productivity which will
provide the ability to compete globally.
• Improve connectivity by accelerating the
completion of announced infrastructure
projects. Enhancing physical connectivity will
help reduce delivery times and improve global
connectivity and the reach of our exporters. By
2022-23, we should complete projects that are
already underway such as the Delhi-Mumbai
Industrial Corridor (DMIC) and Dedicated Freight
Corridors.
• Work with states to ease labour and land
regulations. In particular, we should introduce
exibility in labour provisions across sectors. All
state governments should speedily implement
xed term employment (FTE) that has now been
extended to cover all sectors.
• The government has recently established
a dedicated fund of INR 5,000 crore for
enhancing 12 “Champion Services Sectors”.
Among others, these include IT & ITeS, tourism,
medical value travel and audio visual services.
Given the signicant role of services exports in
maintaining India’s balance of payments, the
government should continue to focus on these
sectors.
• Strengthen the governance and technical
capabilities of Export Promotion Councils
(EPCs) by subjecting them to a well-dened,
performance-based evaluation. Performance
evaluations of EPCs could be based on
increasing the share of Indian exports in
product markets covered by these EPCs. Those
EPCs unable to achieve mutually agreed upon
targets for increasing market shares could be
closed down or re-structured.
• Explore closer economic integration within
South Asia and the emerging economies of
South East Asia particularly Cambodia, Laos,
Myanmar and Vietnam, using the existing
Bangladesh, Bhutan, India, Nepal (BBIN) and
11
the Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Co-operation (BIMSTEC)
frameworks.
o Building the physical infrastructure and
putting in place measures to facilitate
seamless cross-border movement of
goods in the North-East region would
help accelerate integration and promote
exports.
5. Employment generation
• The necessary condition for employment
generation is economic growth. Achieving
the growth targets by implementing the
development strategy outlined in this document
can generate sufcient jobs for new entrants
into the labour force, as well as those migrating
out of agriculture. A large part of jobs would
hopefully be generated in labour-intensive
manufacturing sectors, construction and
services. In addition, the employability of labour
needs to be enhanced by improving health,
education and skilling outcomes and a massive
expansion of the apprenticeship scheme.
________________________________________
1
Source: RBI.
Strategy for
New India @ 75
12
Objectives
• Complete codication of central labour laws
into four codes by 2019.
• Increase female labour force participation to at
least 30 per cent by 2022-23.
• Disseminate publicly available data, collected
through rigorous household and enterprise
surveys and innovative use of administrative
data on a quarterly basis by 2022-23.
• Encourage increased formalization of the labour
force by reforming labour laws, easing of
industrial relations and ensuring of fair wages,
working conditions and social security through
signicant productivity improvements in the
economy.
Current Situation
To capitalize on its demographic dividend, India
must create well-paying, high productivity jobs. Of
India’s total workforce of about 52 crore, agriculture
employed nearly 49 per cent while contributing
only 15 per cent of the GVA. Comprehensive
modernization of agriculture and allied sectors are
needed urgently. In contrast, only about 29 per cent
of China’s workforce was employed in agriculture
(Figure 2.1).
1
Industry and services accounted
for 13.7 and 37.5 per cent of employment while
making up for 23 per cent and 62 per cent of GVA,
respectively.
2
A signicant number of workers, currently employed
in agriculture, will move out in search of jobs in
other areas. This will be in addition to the new
entrants to the labour force as a result of population
growth. By some estimates, the Indian economy
will need to generate nearly 70 lakh jobs annually
to absorb the net addition to the workforce. Taking
into account the shift of labour force from low
productivity employment, 80-90 lakhs new jobs will
be needed in the coming years.
Micro and small-sized rms as well as informal
sector rms dominate the employment landscape
in India. As per the National Sample Survey (NSS)
73rd round, for the period 2015-16, there were
6.34 crore unincorporated non-agricultural micro,
small and medium enterprises (MSMEs) in the
country engaged in different economic activities
providing employment to 11.10 crore workers. A
large majority of these rms are in the unorganized
sector. By some estimates, India’s informal sector
employs approximately 85 per cent of all workers.
3
India also exhibits a low and declining female
labour force participation rate. The female labour
force participation rate in India was 23.7 per cent in
2011-12
4
compared to 61 per cent in China, 56 per
cent in the United States.
5
Recognizing the high cost of compliance with
existing labour regulations and the complexity
generated by various labour laws at the central
and state levels, the central government has
recently introduced policies to make compliance
easier and more effective. They are also simplifying
and rationalizing the large and often overlapping
2. Employment and Labour Reforms
13
49%
29%
14.50%
4.60%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
India China Brazil South Africa
Share of Workforce Employed in
Agriculture (%)
Figure 2.1: Share of workforce employed in agriculture
Source: NSSO; World Bank
number of labour laws. These measures include
moving licensing and compliance processes
online, simplifying procedures and permitting
self-certication in larger number of areas. One of
the government’s key initiatives is to rationalize 38
central labour laws into four codes, namely wages,
safety and working conditions, industrial relations,
and social security and welfare. Of the four codes,
the one on wages has been introduced in the Lok
Sabha and is under examination. The other three
codes are at the pre-legislative consultation stage
and should be completed urgently.
The government has put in place several schemes
to help generate employment. These include the
Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS),
MUDRA Yojana
,
Prime Minister’s Employment Generation
Programme and
Pradhan Mantri Rojgar Protsahan
Yojana
. Additional initiatives aid job creation
through providing skill development, easing access
to credit and addressing sector specic constraints.
The government also made the EPFO premium
portable so that workers can change jobs without
fear of losing their provident fund benets.
The government has recently made publicly
available the data on employment collected by the
Employment Provident Fund Organization (EPFO),
Employees’ State Insurance Corporation (ESIC)
and National Pension Scheme (NPS). With MOSPI
collecting employment data through its enterprises
and household surveys – particularly the Periodic
Labour Force Survey – and the focus on improving
payroll data, the effort is to vastly improve
availability of reliable employment data and release
it on a regular basis.
Constraints
• Productivity across all sectors. A large
share of India’s workforce is employed in
low productivity activities with low levels of
Strategy for
New India @ 75
14
remuneration. This is especially true of the
informal sector where wages can be one
twentieth of those in rms producing the same
goods or services but in the formal sector.
6
• Protection and social security. A large number
of workers that are engaged in the unorganized
sector are not covered by labour regulations
and social security. This dualistic nature of the
labour market in India may be a result of the
complex and large number of labour laws that
make compliance very costly. In 2016, there
were 44 labour laws under the statute of the
central government. More than 100 laws fall
under the jurisdiction of state governments.
7
The multiplicity and complexity of laws makes
compliance and enforcement difcult.
• Skills. According to the India Skill Report 2018,
only 47 per cent of those coming out of higher
educational institutions are employable.
8
• Employment data. We currently lack timely
and periodic estimates of the work force.
This lack of data prevents us from rigorously
monitoring the employment situation and
assessing the impact of various interventions to
create jobs.
Way Forward
1. Enhance skills and apprenticeships
• The Labour Market Information System (LMIS)
is important for identifying skill shortages,
training needs and employment created. The
LMIS should be made functional urgently.
• Ensure the wider use of apprenticeship
programmes by all enterprises. This may require
an enhancement of the stipend amount paid
by the government for sharing the costs of
apprenticeships with employers.
2. Labour law reforms
• Complete the codication of labour laws at the
earliest.
• Simplify and modify labour laws applicable
to the formal sector to introduce an optimum
combination of exibility and security.
• Make the compliance of working conditions
regulations more effective and transparent.
• The National Policy for Domestic Workers
needs to be brought in at the earliest to
recognize their rights and promote better
working conditions.
3. Enhance female labour force participation
• Ensure the implementation of and employers’
adherence to the recently passed Maternity
Benet (Amendment) Act, 2017, and the
Sexual Harassment of Women at Work Place
(Prevention, Prohibition and Redressal) Act. It is
also important to ensure implementation of these
legislations in the informal sector. Further details
may be found in the chapter on Gender.
• Ensure that skills training programmes and
apprenticeships include women.
4. Improve data collection on employment
• Ensure that data collection for the Periodic
Labour Force Survey (PFLS) of households
initiated in April 2017 is completed as per
schedule and data disseminated by 2019.
• Conduct an annual enterprise survey using the
goods and service tax network (GSTN) as the
sample frame.
• Increase the use of administrative data viz.
EPFO, ESIC and the NPS to track regularly the
state of employment while adjusting for the
formalization of the workforce.
15
5. Ease industrial relations to encourage
formalization
• Increase severance pay, in line with global best
practices.
• Overhaul the labour dispute resolution system
to resolve disputes quickly, efciently, fairly and
at low cost.
• Strengthen labour courts/tribunals for timely
dispute resolution and set a time frame for
different disputes.
6. Wages
• Make compliance with the national oor level
minimum wage mandatory.
• Expand the Minimum Wages Act, 1948, to
cover all jobs.
• Enforce the payment of wages through cheque
or
Aadhaar
-enabled payments for all.
7. Working conditions and social security
• Enact a comprehensive occupational health and
safety legislation based on risk assessment,
employer-worker co-operation, and effective
educational, remedial and sanctioning. Workers
housing on site will help to improve global
competitiveness of Indian industry, along with
enhancing workers’ welfare.
• Enhance occupational safety and health (OSH)
in the informal sector through capacity building
and targeted programmes.
• Ensure compulsory registration of all
establishments to ensure better monitoring of
occupational safety as well as recreation and
sanitation facilities.
• Enhance transparency in the labour inspection
system by allowing online complaints and
putting in place a standardized and clear
mechanism.
________________________________________
1
2017 OECD Economic Survey of India; NSSO.
2
Sectoral Contribution to GVA calculated using data from MOSPI’s Second Advance Estimates. Industry consists of manufacturing,
mining and quarrying and electricity, gas, water supply& other utility services. The services sector consists of trade, hotels, transport,
communication and services related to broadcasting; construction; nancial, real estate and professional services; and public admin-
istration, defence and other services.
3
OECD India Policy Brief, Education and Skills. Accessed May 15, 2018.
https://www.oecd.org/policy-briefs/India-Improving-Quality-of-Education-and-Skills-Development.pdf.
4
NSSO 68th Round (2011-12). Female labour force participation rate calculated using usual principal status, covering both urban and
rural areas.
5
World Development Indicators database, World Bank. Accessed May 16, 2018.
6
Data from Annual Survey of Industries (ASI) and NSS, cited in the Annual Economic Survey, 2015-16
http://indiabudget.nic.in/es2015-16/echapvol1-10.pdf. Accessed May 15, 2018.
7
Ministry of Labour and Employment, India.
http://labour.nic.in/about-ministry. Accessed May 15, 2018.
8
India Skill Report 2018.
Strategy for
New India @ 75
16
Objectives
• India should be among the top 50 countries in
the Global Innovation Index by 2022-23.
1
• Five of our scientic research institutions should
be amongst the top 100 in the world.
• India should aim to spend at least 2 per cent
of gross domestic product (GDP) on R&D with
equal contributions from the public and private
sector.
Current Situation
Recognizing the crucial role of technology and inno-
vation in economic development, India’s policy mak-
ers have taken several initiatives to promote science,
technology and innovation (see gure below).
Various schemes have been launched to attract,
nurture and retain young researchers and women
scientists in the eld of scientic research. Some
important achievements in the eld of science and
technology are enumerated below.
3. Technology and Innovation
TECHNOLOGY AND INNOVATION
OBJECTIVE:
By 2022-23:
India should be among the top 50 countries in the Global Innovation Index.
i
Ten of our scientific research institutions should be amongst the top 100 in the world.
India should aim to spend at least 2 per cent of gross domestic product (GDP) on R&D with
equal contributions from the public and private sector.
CURRENT SITUATION
Recognizing the crucial role of technology and innovation in economic development, India’s policy
makers have taken several initiatives over the last decade and a half to promote science, technology
and innovation (see figure below):
Figure 1: Steps taken to promote science, technology and innovation in India
Various schemes have been launched to attract, nurture and retain young researchers and women
scientists in the field of scientific research. Some important achievements in the field of science and
technology are enumerated below:
First, India has become a major destination for outsourced R&D activities. We currently have
more than 1,100 R&D centres set up by multi-national companies (MNCs) such as IBM,
Google, Microsoft, Intel, Lupin, Wockhardt, etc. These R&D centres cover areas including
1971
Department of Science and
Technology established.
Promotes basic research
via:
• Research funding schemes
through Science and
Engineering Research
Board (SERB) and other
in-house programmes
• Autonomous Institutions
(AIs) under DST were set
up
2000
National
Innovation
Foundation was
set up to fund
grassroots
innovations
2003
Science and
Technology
Policy brought
together Science
and Technology
2013
Science,
Technology and
Innovation (STI)
Policy formulated.
2016
Atal Innovation
Mission
launched
Figure 3.1: Steps taken to promote science, technology and innovation in India
17
• India has become a major destination for
outsourced R&D activities. We currently have
more than 1,100 R&D centres set up by multi-
national companies (MNCs) such as IBM, Google,
Microsoft, Intel, Lupin, Wockhardt, etc. These
R&D centres cover areas including information
and communication technologies, biotechnology,
and aerospace, automotive, chemicals and
materials technology. India’s relatively strong
intellectual property regime will facilitate its
emergemce as a major R&D centre.
• Indian scientists are at the forefront of some
global groundbreaking work. Recent contribu-
tions by Indian scientists to frontier research
and technology have been encouraging. For
example, 37 Indian scientists from nine Indian
institutions played a key role in the discovery
of gravitational waves that received the Physics
Nobel prize in 2017. Indian scientists also
contributed to the discovery of a neutron star
merger at Laser Interferometer Gravitational
Wave Observatory (LIGO), USA.
• The development of Brahmos, advanced air
defence supersonic interceptor missiles, diverse
missiles and rocket systems, remotely piloted
vehicles, light combat aircraft, etc., are brilliant
examples of India’s progress in strategic and
defence technologies.
• India now ranks amongst a handful of nations
that have credible capabilities in the eld of
space technology. The upgrading from SLV to
ASLV and PSLV to GSLV, the rst moon orbiter
project Chandrayan-1, Mars Orbiter Mission
and the recent simultaneous launch of 104
satellites are India’s signicant achievements.
• India is now the third largest country in
terms of the number of start-ups. This
number is expected to rise exponentially
in the coming years. The government has
set up the Atal Innovation Mission (AIM)
to transform radically the innovation,
entrepreneurship and start-up ecosystem of
the country.
While India has improved in most areas of
technology, it is also necessary to recognize the
challenges that we need to overcome to become an
innovation led society.
Constraints
• Low R&D expenditure, especially from the private
sector, is a key challenge facing the innovation
ecosystem in India. The latest R&D Statistics
2
released by the National Science and Technology
Management Information System (NSTMIS) of
the Department of Science and Technology (DST)
show that while R&D expenditure in India tripled
in the period from 2004-05 to 2014-15, its size
as a percentage of GDP remained at 0.7 per cent.
This is very low compared to the 2 per cent and
1.2 per cent spent by China (for 2015) and Brazil
(for 2014) respectively.
3
Countries like Israel
spend as much as 4.3 per cent of their GDP on
R&D. Furthermore, while the share of the private
sector in R&D investment in most technologically
advanced countries is as high as 65 per cent to
75 per cent, it is only about 30 per cent in India.
• The number of scientic R&D professionals
in India at 218 per million population is
distressingly low compared to China’s 1,113
and USA’s 4,019.
• The link between research, higher education
and industry is weak and nascent. It needs to
be strengthened and put on a rm platform.
• Our education system has so far not focused on
cultivating a scientic temperament at an early
age. Even at the later stages of an aspiring sci-
Strategy for
New India @ 75
18
entist’s career, the lack of career opportunities
in basic sciences leads to the diversion of po-
tential researchers to other rewarding sectors.
• “Lab to Land” time is too long. Renowned public
funded institutions like the Council of Scientic
& Industrial Research (CSIR), Defence Research
and Development Organization (DRDO), Bhabha
Atomic Research Centre (BARC), Indian Council
of Medical Research (ICMR), Indian Council
of Agricultural Research (ICAR) Indian Space
Research Organisation (ISRO), Indira Gandhi
Centre for Atomic Research (IGCAR) etc., along
with prominent universities across the country,
have developed many frontline technologies.
However, the rate of transfer of these
technologies to industry and for societal benets
is low.
• The adoption of indigenous innovations by
Indian industry is not very encouraging.
Frequent violation of Preferential Market Access
(PMA) is an issue leading to large-scale imports
of foreign products and services.
• The public procurement system is heavily
biased in favour of experienced and established
products and technologies. This strongly
discourages new and innovative technologies
offered by start-ups, who do not get much-
needed support from government procurement.
• There has been poor progress in the
development and deployment of affordable
technologies for rural areas, particularly in
agriculture, agro-processing, micro irrigation, etc.
The Way Forward
• An empowered body is needed to steer
holistically the management of science in the
country. Its scope will include science education
and scientic research as well as coordinating
and guiding various science initiatives. The
proposed body will help in pursuing inter-
ministerial, inter-disciplinary research besides
breaking silos among various scientic
departments/agencies.
• The major weaknesses of public funded
R&D and technology institutions like CSIR,
DRDO, BARC, ICMR and ISRO are their poor
marketing skills and information dissemination.
Some measures for enhancing technology
commercialization by public funded institutions
are provided below:
o Value addition centres may be set up in
each of these institutions for (i) up-scaling
technologies, (ii) improving technologies
from Technology Readiness Level (TRL) 4 to
TRL 6/7, (iii) demonstrating industrial scale
pilot production, (iv) coordinating with in-
vestors to incubate entrepreneurs, (v) bridg-
ing the gap between industry and technolo-
gy development teams, (vi) enabling formal
technology transfer, (vii) enabling commer-
cialization and marketing and (viii) providing
technology support during production.
o DST should create a National Technology
Data Bank in coordination with all publicly
funded R&D institutions. This will provide a
central database for technologies that are
ready for deployment or under development.
o Public funded research institutions
should consider shifting their focus to the
development and deployment of socially
relevant technologies in areas such as
clean drinking water, sanitation, energy,
affordable healthcare, organic farming, etc.
These technologies have large potential for
commercialization.
• Measures related to government procurement
include the following:
19
o In all government procurements,
international competitive bidding for both
products and services should be resorted
to only when Indian manufacturers are
unable to supply products/services of
comparable international quality. This will
promote the Make in India initiative.
o Quarterly workshops may be organised for
creating awareness among procurement
managers of various ministries/
departments/state governments/CPSUs,
about the DIPP’s Public Procurement Order
2017 (which aims to promote Make in
India products/services).
o To adopt innovative technologies,
experts/scientic practitioners should be
mandatorily included on board/committees
related to government procurement. All
RFP/RFQ documents should include a
suitable clause in this regard.
o In order to promote procurement of goods/
services developed by Indian start-ups,
preference in the technical evaluation could
be provided to them.
• To bring vibrancy to frugal innovations, a non-
lapsable “District Innovation Fund” with a corpus
of about INR 2 crore in each district may be creat-
ed and used to promote grass root innovations.
• AIM has already launched Atal New India
Challenges in partnership with ve ministries
to create products from technologies and
prototypes in areas of national importance
such as solid waste management, water and
wastewater management as well as road and
rail transport. These, along with Atal Incubation
Centres (AICs) will also provide the platform
for promoting frugal innovation. More such
challenges will be launched in partnership with
ministries and support will be provided to these
ministries to adopt the resultant innovations.
• AIM has set up over 1000 Atal Tinkering Labs
(ATLs) around the country covering over 625
districts. It is aimed to take this number to
at least 5,000 by 2019 and 10,000 by 2020.
Further expansion will be considered based on
the outcomes of the rst phase.
• To promote entrepreneurship and startups, AIM
is supporting AICs across the country including
at Tier II/III locations. These include existing
and new incubation centres. It is expected that
more than 100 world-class incubation centres
will be up and running by 2020.
• Foreign collaborators, consultants, visiting
faculty, adjunct scientists, etc., need to be
involved in pursuing R&D in the emerging areas
of basic sciences such as nano-technology,
stem cell research, astronomy, genetics, next
generation genomics, drug discovery, etc. DST, in
collaboration with Indian Missions abroad, may
identify discipline wise foreign experts who can
collaborate with Indian scientists to take basic
research in these areas to the next level.
• The Higher Education Commission once set
up may consider giving credits for innovation
and start-ups and also setting up online
entrepreneurial development courses in colleges
and universities.
________________________________________
1
Published by World Intellectual Property Organization jointly with Cornell University and INSEAD.
2
Source: http://www.nstmis-dst.org/Statistics-Glance-2017-18.pdf. Accessed April 20, 2018.
3
World Bank Statistics.
Strategy for
New India @ 75
20
Objectives
• Double the current growth rate of the manufac-
turing sector by 2022.
• Promote in a planned manner the adoption of
the latest technology advancements, referred to
as ‘Industry 4.0’, that will have a dening role
in shaping the manufacturing sector in 2022.
Current Situation
India is the fth largest manufacturer in the world
with a gross value added (GVA) of INR 21,531.47
billion in 2017-18 (2nd advance estimate for
2017-18 at 2011-12 prices). The sector registered
a compound annual growth rate (CAGR) of around
7.7 per cent between 2012-13 and 2017-18.
1
The government has taken several initiatives to
promote manufacturing. Among these are the
Make in India Action Plan aimed at increasing
the manufacturing sector’s contribution to 25 per
cent of GDP by 2020,
2
the Start-up India initia-
tive to promote entrepreneurship and nurture
innovation, and the Micro Units Development
and Refinance Agency (MUDRA) and Stand-up
India to facilitate access to credit. It has also un-
dertaken massive recapitalisation of public sector
banks
3
to ease availability of credit to micro,
small and medium enterprises (MSMEs). Besides,
it has undertaken major infrastructure projects,
such as the setting up of industrial corridors, to
boost manufacturing.
The Department of Industrial Policy & Promotion
(DIPP) has been engaging with states/UTs to
enhance the ease of doing business. Following
concerted efforts of the government, the World
Bank ranked India 100th among 190 countries
in the Ease of Doing Business (EODB) in 2018.
This was a jump of 34 positions since 2014.
While these indices are useful for comparison,
actual improvement in EODB will come only with
greater coordination between the centre and
states.
The foreign direct investment (FDI) regime has been
substantially liberalized, signicantly improving
India’s rank in terms of annual FDI inows from 14
in 2010 to 9 in 2017. However, India receives only
25 per cent of the FDI that China gets and only 10
per cent of what the USA receives. FDI inows into
the manufacturing sector reached about 35 per cent
of total FDI.
4
Manufacturing as a percentage of the gross
domestic product has remained at about 16 per
cent. Improvement are evident in recent quarters,
where manufacturing growth at 6.9 per cent and
8.1 per cent in Q2 and Q3 2017-18 (year-on-year
as compared to 2016-17) outpaced GDP growth.
Figure 4.1 shows the trend in manufacturing as a
percentage of GVA from 2011-12 until 2017-18.
Constraints
The main constraints on achieving the objectives set
for India’s industry in 2022-23 are the following:
4. Industry
21
improvements in our global EODB rank, it
continues to be a drag on the system. This is
also true of investment conditions in the states.
Getting construction permits, enforcing con-
tracts, paying taxes, starting a business and
trading across borders continue to constrain
doing business.
Way Forward
Demand generation, augmentation of industrial
infrastructure and promotion of MSMEs
• The government can play a crucial role in
creating domestic manufacturing capabilities by
leveraging proposed public procurement and
projects. Mega public projects such as
Sagar-
mala, Bharatmala
, industrial corridors, and the
Pradhan Mantri Awas Yojana
(PMAY) can stimu-
late domestic manufacturing activities provided
the projects are suitably structured and demand
is aggregated strategically. This should be
Figure 4.1: Manufacturing as a share of GDP, 2011-12 to 2017-18
16.1%
16.1%
15.9%
16.0%
16.7%
16.8%
16.6%
15%
16%
16%
16%
16%
16%
17%
17%
17%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
(2nd AE)
Share of GDP (%)
Source: MoSPI
• Regulatory uncertainty: Regulatory risks and
policy uncertainty in the past have dented
investor condence.
• Investment: There has been a cyclical slow-
down in fresh investment since 2011-12.
• Technology adoption: The adoption of new
technologies like articial intelligence, data
analytics, machine-to-machine communications,
robotics and related technologies, collectively
called “Industry 4.0”, are a bigger challenge
for SMEs than for organized large-scale manu-
facturing. Data security, reliability of data and
stability in communication/transmission also
pose challenges to technology adoption.
• Exports and insufcient domestic demand:
There has been no export driven industrial
growth. Domestic demand alone may not be ad-
equate for sustained, high value manufacturing.
• Challenges to doing business: Despite recent
Strategy for
New India @ 75
22
accompanied by simplication of the regulatory
process. The Madhepura Electric Locomotive
Project, a joint venture between the Indian
Railways and the French multinational Alstom,
provides a good example of how mega projects
can be leveraged to boost domestic production.
The project enabled effective transfer of tech-
nology and the availability of state-of-the-art
locomotives for the railways. The Madhepura
model is replicable in the defence, aerospace,
railways and shipping sectors.
• Set up a portal to monitor projects beyond a
given threshold so that any roadblocks are
identied and addressed on a real time basis.
State governments should be encouraged or
incentivized to contribute data to this portal.
NITI Aayog’s Development Monitoring and Eval-
uation Ofce (DMEO) can help set up the portal.
An inter-ministerial body with representatives
of state governments and project promoters (as
special invitees) may be constituted.
• Efforts should be made to develop self-sufcient
clusters of manufacturing competence, with
Cluster Administrative Authorities empowered
to provide single window clearances to en-
trepreneurs and investors. Industrial corridors
should address the lack of infrastructure and
logistics. Logistics will need to be supplemented
with warehousing and other elements of the
manufacturing supply chain.
• NITI Aayog could work with states to prepare
manufacturing clusters and develop export
strategies based on their sector competitive-
ness and resource strengths. A cluster should
have supporting industries and infrastructure. It
should also develop a local brand and distribu-
tion channel through an e-commerce platform.
A Cluster Administration Ofce should be given
the responsibility to award factory permissions
and compliances.
• For India to become the world’s workshop, we
should encourage further FDI in manufacturing,
particularly when it is supported with buybacks
and export orders.
• Streamline discretionary powers vested at
different levels of governance by adopting
digitized processes and making all approvals
electronic in a transparent, time bound manner.
• Disruptive technology, while leading to job
losses in traditional areas, also presents new
job opportunities. A greater connect between
government-industry-academia is required to
identify the changing requirements in manufac-
turing and prepare an employable workforce. In
the context of employability of engineers, there
is a need for thorough review of standards of
engineering education and its linkages with
industry.
• E-commerce can be the driver of overall eco-
nomic growth over the next decade through
its impact on generating demand, expanding
manufacturing, employment generation and
greater transparency. A Committee, chaired
by CEO, NITI Aayog examined issues related
to the e-commerce industry
5
. It made recom-
mendations for the sector’s growth including
increasing internet access, digitizing payments,
further improving transportation infrastructure,
logistics and distributed warehousing support.
These may be examined for implementation at
the earliest.
• Harmonize Indian quality standards with global
standards in many sectors. Lack of harmoniza-
tion has affected Indian exports and prevented
the leveraging of trade agreements adequately.
23
For e.g., the medical device industry would
benet greatly from conformity to standards
that are essential for new products to be
acceptable to doctors and patients abroad.
The issues of regulations and standards setting
are also intertwined. The following initiative is
required in this regard:
o Task the Bureau of Indian Standards and
Quality Council of India with assessing
the improvements in standards and
productivity required to achieve global
standards.
• Address the following issues in respect of
MSMEs:
o Setting up of mega parks and manufac-
turing clusters in labour intensive sectors
with common facilities to reduce costs and
improve quality. It is also recommended
that state governments should set up plug
and play parks (atted factories) to ensure
international productivity standards.
o Workers of industrial units in the new
mega parks should have decent accommo-
dation within reasonable proximity of the
work place.
o An expert committee should examine
sector-specic pain points and make its
recommendations within three months.
o The Department of Public Enterprises
(DPE) should ensure registration of all
public sector units (PSUs) on the Trade
Receivables Discounting System (TREDS)
portal.
o Initiate a small business research
programme in some select ministries for
encouraging R&D in MSMEs.
Industry 4.0
• Launch a major initiative to push industry to
adopt Industry 4.0. Industry 4.0 is characterized
by increasing digitization and interconnection of
products, value chains and business models. It
will signicantly impact sectors like automobile,
pharmaceuticals, chemicals and nancial ser-
vices and will result in operational efciencies,
cost control and revenue growth. Experts feel
that emerging markets like India could benet
tremendously from the adoption of Industry 4.0
practices.
• In his 2018 Budget Speech, the Finance
Minister mandated NITI Aayog to initiate a
national programme directing India’s efforts
on Articial Intelligence
6
. On a similar note,
NITI Aayog could organize a discussion on
“Industry 4.0,” inviting leading manufacturing
companies from various sectors including
automobile/auto components, electrical and
electronics, chemicals, cement/steel, etc.,
along with concerned ministries to discuss
plans for adopting Industry 4.0.
• The Indian Institute of Science, a few select In-
dian Institutes of Technology (IITs), National In-
stitutes of Technology (NITs) and other premier
engineering colleges should create specialized
training programmes on ‘Smart Manufacturing’
to address the shortage of high-tech human
resources.
• The Department of Heavy Industry (DHI) should
develop the Central Manufacturing Technology
Institute (CMTI), Bangalore, as a Centre of
Excellence for pursuing R&D in Industry 4.0
technologies and systems. The Department
of Science & Technology should spearhead
industry-academia R&D projects on cyber
physical systems.
Strategy for
New India @ 75
24
• The development of industries that produce
the key building blocks forming the basis of
Industry 4.0 could be incentivized. Incentives
could be focused on MSMEs that manufacture
products including sensors, actuators, drives,
synchronous motors, communication systems,
computer displays, and auxiliary electromechan-
ical systems. Similarly, industries adopting In-
dustry 4.0 standards could be provided support
for a xed period of time.
• Reliability, stability and integrity of smart man-
ufacturing systems can be increased by creating
Indian standards for the systems and sub-sys-
tems for adoption by manufacturers.
Ease of doing business
• Introduce a “single window” system in all states
that provides a single point of contact between
investor and government and facilitates all
required licences and approvals. It should be
based on stakeholder consultation.
• For efcient approval/inspection process, devel-
op a system of accountability for major stake-
holders like inspection bodies, testing labs, etc.
• For geographical planning and ease of
environmental clearances, adopt the system
of using Geographic Information System (GIS)
based maps at all levels to create pre-approved
land banks for manufacturing facilities. This
is already being practiced in some states. In
such designated land banks, standards can
be clearly laid down in advance relating to (i)
environmental requirements (ii) building bye-
laws, and (iii) safety and other norms.
• Replicate in other states the Gujarat Pollution
Control Board (GPCB) Environmental Audit
Scheme based on third party certication.
• To strengthen third party certication systems,
develop suitable accreditation agencies.
• Ensure the seamless integration of the
Shram
Suvidha
portal and state agencies’ portals.
________________________________________
1
Ministry of Statistics and Programme Implementation data Accessed April 30, 2018.
2
Make in India website. Accessed April 30, 2018. http://www.makeinindia.com/about.
3
http://pib.nic.in/newsite/PrintRelease.aspx?relid=171900. Accessed April 30, 2018.
4
http://dipp.nic.in/sites/default/les/FDI_FactSheet_21February2018.pdf. Accessed April 29, 2018.
5
http://pib.nic.in/newsite/mbErel.aspx?relid=169011. Accessed April 27, 2018.
6
http://www.indiabudget.gov.in/ub2018-19/bs/bs.pdf. Accessed April 27, 2018.
25
Objectives
• Modernize agricultural technology, increase
productivity, efciency and crop diversication.
• Generate income and employment through a
paradigm shift that ensures food security while
maximizing value addition in agriculture.
Current Situation
The existing yield levels of a majority of crops
remains much lower than the world average.
The predominant causes are low irrigation, use
of low quality seeds, low adoption of improved
technology, and knowledge decit about
improved agricultural practices. Close to 53 per
cent of cropped area is water stressed. Rainwater
management practices and services are resource
starved. This limits a farmer’s capacity to undertake
multiple cropping and leads to inefcient utilization
of land resources.
Inefcient extension delivery systems have led
to the presence of large yield gaps as well. Yield
gaps exist at two levels in India. First, there is a
gap between best scientic practices and best eld
practices. The second gap exists between best
eld practices and the average farmer. There exist
signicant yield gaps both amongst and within
states. Yield gaps have been found to exist in even
highly productive states such as Punjab. Closing
these gaps provides an opportunity to enhance
productivity and incomes signicantly. This further
implies that states with low productivity (or large
yield gaps) have signicant potential for catch-up
growth in their productivity levels.
Demand side factors favour the expansion of
area under fruits and vegetables, and livestock
products. These enterprises also offer better
income. Staple crops (cereals, pulses and oilseeds)
occupy 77 per cent of the total gross cropped
area (GCA) but contribute only 41 per cent to
the output of the crop sector. High value crops
(HVCs) contribute an almost similar amount to
total output as staples do, but they occupy only
19 per cent of the GCA.
1
Research has also shown
that diversication to the fruits and vegetables
segment is likely to benet small and medium
farmers more than large ones.
2
Over the past few years, new development
initiatives aimed at modernising agriculture have
been introduced.
Pradhan Mantri Krishi Sinchai
Yojana
(PMKSY) aims to expand irrigation coverage
whilst promoting water use efciency. Area under
micro irrigation has grown 2.5 times in the last
four years. The second cycle of the Soil Health
Card (SHC) scheme is underway, which will focus
on job creation and entrepreneurship development
through local entrepreneurship models. So far,
3.76 crore SHCs have been distributed under the
second cycle.
5. Doubling Farmers’ Income (I):
Modernizing Agriculture
Strategy for
New India @ 75
26
Constraints
1. Use of outdated and inappropriate technology
is the main reason for low productivity of crops
and livestock.
2. Given the pre-dominance of small and margin-
al farmers in Indian agriculture, affordability
becomes a signicant constraint on technology
adoption by farmers.
3. There exist several bottlenecks hampering
on-farm adoption of technology developed in
public sector.
4. Agricultural research in the country is constrained
by resource inadequacy, regulations and intellec-
tual property rights (IPR).
5. Multiple private and public sources supplying
different information to farmers create
confusion.
6. A huge gap exists between the demand for and
supply of skills in agriculture, hindering diver-
sication, adoption of precision agriculture and
on farm post-harvest value addition.
7. India has not caught up to the rest of the
world in terms of technology, which has led
to the dominance of inefcient production
practices, such as ood irrigation, at the farm
level. Renewed focus on on-ground absorption
of technology, market intelligence, skills and
extension and modernising trade and com-
merce in agriculture are needed to modernise
agriculture in India.
8. Both production and marketing suffer due to
the absence of adequate capital.
9. Low scale is a serious constraint on the adop-
tion of improved practices and in the input and
output market.
Way Forward
Productivity and efciency
Increase area under irrigation
: Irrigation coverage
needs to be increased to 53 per cent of gross
cropped area (GCA) by 2022-23.
3
The focus
should be on increasing coverage through micro-
irrigation.
Increase adoption of hybrid and improved seeds
:
States should take the lead through the following
measures:
• Dynamic seed development plans are required.
These may be based on crop wise area (each
season separately), seed rate per hectare used,
desired/targeted seed replacement rate and
crop wise seed requirement. Crop wise require-
ment should be worked out based on histor-
ical trends, introduction of new varieties and
replacement of poor yielding varieties.
• States should aim to increase the seed replace-
ment rate (SRR) to 33 per cent for self-pollinated
crops and 50 per cent for cross-pollinated crops
in alternative years.
Increase Variety Replacement Ratio (VRR)
: Phase out
old varieties of seeds and replace them with hybrid
and improved seeds to enhance productivity. The
Indian Council of Agricultural Research (ICAR) along
with State Agricultural Universities (SAUs) should
develop climate resilient varieties of crops suitable
for the 128 agro-climatic zones of the country,
through farmer participatory plant breeding and
adopting farm varietal trials from the third year of
the development of the seed.
Strengthen seed testing facilities
: Seed testing
facilities need upgradation in terms of both
personnel and technical expertise. Regular
performance monitoring is required to maintain the
quality of test results.
27
Uniform national procedure for seed licensing
:
To tackle the problem of heterogeneity in seed
licensing procedures across states, the central
government should develop model guidelines for
seed licensing and support states in implementing
these.
Efcient fertilizer usage
: Strengthen the SHC
scheme and include not merely nine but all sixteen
parameters in the tests. This will ensure SHC based
fertilizer distribution at the ground level. Seed SHCs
with the integrated fertilizer management system.
Link SHCs with Kisan credit cards and make SHCs
mandatory for subsidies. Ensure proper functioning
of the SHC labs.
Reorient fertilizer subsidy policy
: The current
lopsided fertilizer subsidy policy needs to bring
secondary and micronutrients on the same nutrient-
based subsidy (NBS) platform as phosphorus (P) and
potash (K).
Regulate pesticide use
: Align the pesticide
regulatory framework with food safety laws to
make adoption broad based. Strengthen extension
activities to ensure that best practices reach the
average farmer.
Custom hiring centres
: Madhya Pradesh has
had demonstrable success with their custom
hiring centre model to hasten the pace of farm
mechanization. This model should be replicated
nationwide by employing rural youth and
promoting entrepreneurship.
Subsidies on liquid fertilizers
: Targeted subsidy
should be provided on liquid fertilizers to encourage
fertigation with micro-irrigation.
Investment subsidies for micro-irrigation
: Rather
than power and water subsidies, investment
subsidies for micro-irrigation can be provided
through the DBT mode.
Strengthening extension systems
Synergy between Agriculture Technology
Management Agency (ATMA) and Krishi Vigyan
Kendras (KVKs)
: The ATMA programme needs to
be reoriented to include bottom up planning at
the district and block levels to develop Strategic
Research Extension Plans (SREP).
4
Further
decentralization and autonomy are essential to
the success of this programme. Subject matter
specialists at KVKs should orient their research to
the block action plans developed by ATMA.
Public Private Partnership in KVKs
: The guiding
principles of ATMA provide for the promotion of PPP
in extension delivery. With each KVK in possession
of approximately 50 acres of land, KVKs should
incubate private sector initiatives in extension
delivery.
Market led extension
: Give priority to extension
services that disseminate information to farmers
regarding (i) crop selection (ii) demand for and
supply of crop produce, (iii) expected price of
commodity and (iv) availability of infrastructure
facilities for storage, transport and marketing of
produce.
Value added extension
: Prioritise value added
extension services to enable a reduction in post-
harvest losses by converting raw agricultural
produce to processed products. This allows for
increased price realization and contributes towards
increasing farmers’ income.
District level skill mapping
: ICAR and SAUs should
map the demand for and supply of skills in
agriculture at the district level and coordinate with
skill development missions to impart the required
skills to farmers and agricultural labour.
Replicate dealer training programme in state
agricultural universities
: The National Institute of
Strategy for
New India @ 75
28
Agricultural Extension Management’s (MANAGE)
dealer training programme should be replicated
in SAUs, with diploma holders granted licences to
conduct extension activities.
Sustainable water use in agriculture
: About 83
per cent of water is used in agriculture. The
solution to resolving India’s imminent water crisis
lies in conserving water in agriculture. Therefore,
more efficient irrigation technologies, water
harvesting and better crop selection must be
encouraged.
Diversication: promotion of high value
crops (HVCs) and livestock
High value crops
Encourage diversication to HVCs
: Design an
incentive mechanism to wean farmers away from
cereal crops to HVCs. The area under fruits and
vegetables needs to increase by 5 per cent every
year.
5
Establish regional production belts
: As in the cluster-
based approach, regional production belts for HVCs
need to be identied and supported through the
Mission on Integrated Development of Horticulture
(MIDH). Make SHCs mandatory in these belts.
Use of hybrid technology in vegetables
: Shift to
using hybrid varieties for vegetables. At present,
10 per cent of the cropped area under vegetables is
under hybrids. Shifting to hybrids has the potential
to increase yields by 1.5 to 3 times and provide a
signicant increase in income.
6
Rootstocks for production of fruits
: Rootstock
technology has shown the capacity to double
production and be resilient to climate stress.
Measures should be taken to standardize and
promote usage of rootstocks to produce fruits.
Smart horticulture
: There have been pockets of
success spread throughout the country, using
techniques such as high-density plantation,
protected cultivation and organic production. These
methods need to be documented and replicated at
the national level. It is recommended that a mission
on smart horticulture may be setup to identify
and promote new technologies. This mission must
work in synergy with various agricultural research
institutions in the country.
Strengthen market for organic products
: Targeted
efforts to create a market for niche products is
recommended. Spices unique to a state can be
branded by the Spice Board to encourage the
production of organic spices.
Convert agricultural waste
: Recycling and utilizing
agricultural waste would give a further lip to
farmers’ income.
Livestock and sheries
Breed indigenous cattle with exotic breeds
:
Breeding of indigenous cattle with exotic breeds
needs to be encouraged to arrest the issue of
inbreeding. This will enable greater gene coverage,
reduced diseases and greater resilience to climate
change.
7
Promote and develop bull mother farms
:
Employing multiple ovulation and embryo transfer
technologies, these farms can signicantly enhance
milk productivity through the supply of cattle with
enhanced milk potential to farmers.
Village level procurement systems
: Installing of bulk
milk chillers and facilities for high value conversion
of milk are needed to promote dairy in states. The
private sector should be incentivized to create a
value chain for HVCs and dairy products at the
village level.
29
________________________________________
1
Chand, Ramesh (2017), Doubling Farmers’ Income: Rationale, Strategy, Prospects & Action Plan, NITI Aayog Policy Paper, NITI Aayog.
New Delhi.
2
Committee on Doubling Farmers’ Income, Ministry of Agriculture and Farmers Welfare (2018). Vol. II: Status of Farmers’ Income:
Strategies for Accelerated Growth, Doubling Farmers’ Income. New Delhi.
3
Chand, Ramesh (2017), Doubling Farmers’ Income: Rationale, Strategy, Prospects & Action Plan, NITI Aayog Policy Paper, NITI Aayog.
New Delhi.
4
Committee on Doubling Farmers’ Income, Ministry of Agriculture and Farmers Welfare (2017). Vol. XI: Empowering the Farmers
through Extension. New Delhi.
5
Chand, Ramesh (2017), Doubling Farmers’ Income: Rationale, Strategy, Prospects & Action Plan, NITI Aayog Policy Paper, NITI Aayog.
New Delhi.
6
Committee on Doubling Farmers’ Income, Ministry of Agriculture and Farmers’ Welfare (2018). Vol. VIII-C. Horticulture and
Sericulture: Production Enhancement through Productivity Gains. New Delhi.
7
Ministry of Agriculture and Farmers’ Welfare (2018). National Conference on Agriculture. Background Paper on Promotion of
Livestock, Dairy, Poultry and Fisheries as Engines of Growth. New Delhi.
Convergence of schemes in sheries sector
:
Integrate the Blue Revolution scheme with
MGNREGA. Ponds created through MGNREGA
should be used to promote aquaculture and can be
used to create potential clusters as well.
Capacity building for sh breeders and farmers
:
Establish sh co-operative organisations and run vil-
lage level schemes in coordination with
panchayats
to disseminate best practices and research.
Strategy for
New India @ 75
30
Objectives
• Create a policy environment that enables
income security for farmers, whilst maintaining
India’s food security.
• Encourage the participation of the private sector
in agricultural development to transition from
agriculture to robust agri-business systems.
• Promote through government policies the
emergence of ‘agripreneurs’ so that even small
and marginal farmers can capture a higher
share of value addition from ‘farmgate to fork’.
Current Situation
The mismatch between the contribution of
agriculture to national income and share in
employment has remained large and has
widened. The manufacturing and service sectors
have failed to absorb the excessive workforce
in agriculture. Consequently, value addition per
worker in agriculture grew slowly and income
per farmer never crossed one-third of the income
of a non-agriculture worker since the 1980s. The
country took 22 years to double farmers’ income
at an annual growth rate of 3.31 per cent during
1993-1994 to 2015-16; doubling farmers’ income
between 2015-16 and 2022-23 will require an
annual growth rate of 10.4 per cent in farmers’
real income.
Corporate investment in agricultural infrastructure
has not exceeded 2 per cent. In the years post-
independence, the policy structure was focused on
increased production and productivity to ensure
food security for India. However, to achieve the
target of doubling farmers’ income by 2022-23, we
need to shift our focus from agriculture to agri-
business.
The current government has taken several steps to
improve private investment in agriculture. 100 per
cent foreign direct investment (FDI) was allowed
in 2016-17. Similarly, the SAMPADA scheme
targets creation of food processing infrastructure.
The budget allocation to the food processing
sector was doubled in the Union Budget 2018-19.
Introduction of the Model Agricultural Produce and
Livestock Marketing Act (2017), Model Contract
Farming Act, new guidelines for agro-forestry are
some other key policy initiatives taken over the
past few years.
Constraints
1. Fragmented land holdings
Agriculture is characterised by an extremely
fragmented landholding structure with an
average farm size of 1.15 hectares and the
predominance of small and marginal farmers,
with those holding less than 2 hectares
6. Doubling Farmers’ Income (II):
Policy & Governance
31
46%
63%
48%
37%
58%
0%
10%
20%
30%
40%
50%
60%
70%
Arahar (Tur) Gram (Whole) Maize Rice (Coarse) Wheat (Desi)
Gap (%)
Figure 6.1: Price spread between farm harvest prices and retail prices for select
agricultural commodities, 2015-16
Source: NITI Aayog Calculations & Directorate of Economics & Statistics, Ministry of Agriculture & Farmers Welfare
(accounting for 85 per cent of agricultural
households).
1
This makes it difcult for them
to access credit or new technology, severely
affecting farm productivity and hence, farmers’
incomes.
2. Low price realization
There exists a large gap between farm harvest
prices (FHP) and retail prices (see Figure 6.1).
2
Prices also tend to fall below the minimum
support prices in a good production year,
leading to agrarian distress. Mechanisms need
to be developed to ensure remunerative prices
to farmers, in both ‘good’ and ‘bad’ monsoon
years.
3. Non-farm employment
Lack of non-farm employment opportunities has
resulted in excessive dependence on agriculture
for livelihood among both small and marginal
farmers as well as among the landless.
4. Agricultural credit
Despite an allocation of more than INR 11
lakh crore of commercial credit, access to
institutional credit remains a constraint,
especially in the case of tenant farmers.
5. Agricultural trade
Exporters of agro-commodities are not
successful in raising their share in global
markets because of uncertainty in the foreign
trading regime.
Way Forward
• Marketing reforms
Many of the constraints in marketing can be
addressed by adopting the Model Agricultural
Produce and Livestock Marketing Act (APLM),
2017,
3
which provides for progressive agricul-
tural marketing reforms, including the setting
up of markets in the private sector, allowing
Strategy for
New India @ 75
32
direct sales to exporters/processors and cus-
tomers, farmer-consumer markets, e-trading,
single point levy of market fee, a unied single
trading licence in a state, declaring warehouses/
silos/cold storage as market sub-yards and the
launch of the National Market for Agriculture.
APLM should be adopted by all states as expe-
ditiously as possible.
• Amend Essential Commodities Act
The Essential Commodities Act, which has
proven a disincentive to large investment in
agricultural technology and infrastructure,
should be replaced with a modern statute
that balances the interests of farmers and
consumers.
• Stable export policy
In consultation with all stakeholders, the
Government of India should come up with
a coherent and stable agricultural export
policy, ideally with a ve to ten-year time
horizon and a built-in provision for a mid-term
review. Efforts should be made to achieve this
urgently.
• Price realization
The government should consider replacing
the Commission on Agricultural Costs & Prices
(CACP) by an agriculture tribunal in line with the
provisions of Article 323 B of the Constitution.
NITI Aayog should set up a group to examine
the following:
o Replacing the minimum support price
(MSP) by a minimum reserve price (MRP),
which could be the starting point for
auctions at mandis.
o Separating the criteria for MSPs for (i)
surplus produce; (ii) for decit but globally
available products; and (iii) for products
that are in decit both domestically and
globally.
o Examine options for including private
traders operating in markets to
complement the minimum support price
regime through a system of incentives and
commission payments.
Raising MSP or prices can only be a
partial solution to the problem of assuring
remunerative returns to farmers. A long-term
solution lies in the creation of a competitive,
stable and unied national market to enable
better price discovery, and a long-term trade
regime favourable to exports.
Agriculture advisory service
: An effective and
technology driven Agriculture Advisory Service
may be considered on the lines of those of the
United States Department of Agriculture (USDA)
and the European Union (EU). The mandate
would be to ensure that farmers adopt an
optimal cropping pattern that maximizes their
income.
Futures trade
: Futures trade should be
encouraged. Removal of entry barriers to
increase market depth should be considered.
Crop insurance
: PMFBY needs to be modied to -
o Promote weather-based insurance.
o Increase non-loanee farmers’ insurance
coverage.
o Allow for mixed cropping and increase the
number of crops notied.
• Contract farming
Encourage states to adopt the Model Contract
Farming Act, 2018: Contract farming can be
thought of as a form of price futures. The
33
contract will specify the price and quality at
which the farmers’ produce will be purchased.
This protects the farmer in cases where prices
fall below the MSP.
Box 1: Salient features of the Model Contract
Farming Act, 2018
The Draft Model Contract Farming Act, 2018, is
an attempt to provide an enabling environment
for contract farming to thrive. First, the Act takes
contract farming out of the ambit of Agricultural
Produce Marketing Committees (APMCs).
Under the Model Act, every agreement
shall be registered with a Registering and
Agreement Recording Committee, consisting of
ofcials from departments such as agriculture,
horticulture, animal husbandry, marketing,
sheries and rural development. The committee
can be set up at the district, block or
taluk
levels. The Act also contains a provision for
the creation of a State-level Contract Farming
(Promotion and Facilitation) Authority.
Dispute resolution is essential to the smooth
functioning of the Model Act. Both farmers
and buyers need to be protected from risks
pertaining to executing the contract. For
example, buyers are exposed to the risk
of the farmer selling his produce to a third
party, whilst the farmer is exposed to the risk
of receiving a price below the agreed price.
The Model Act contains several provisions
for dispute resolution. Briey, these are (i)
negotiation and reconciliation for a mutually
acceptable solution, (ii) referral of the matter to
a nominated dispute settlement ofcer and (iii)
appealing to the Contract Farming (Promotion
and Facilitation) Authority if no suitable solution
is found through solutions (i) and (ii).
• Land aggregation
o
Encourage states to adopt the Model Agri-
culture Land Leasing Act, 2016
: The Model
Act aims to improve land access to small
and marginal farmers through land leasing,
whilst also providing for a mechanism for
tenants to avail of institutional credit. A
major constraint to land leasing under the
present regulatory environment is the un-
willingness of landowners to lease out land
due to fears of land capture by tenants.
The Model Act spells out the rights and
responsibilities of both landowners and
tenants. Like the Model Contract Farming
Act, 2018, this Act too contains provisions
for dispute resolution within a specied
timeframe.
o
Digitize land records
: Complete digitiza-
tion of land records is a must for effective
implementation of land leasing. Geo-tag-
ging, along with location agnostic online
registration of land records to generate
updated land records, must be carried
out.
4
o
Promote farmer producer organizations
(FPOs)
: There are now 741 FPOs in the
country, managed under the aegis of
Small Farmers Agribusiness Consortium
(SFAC). They have demonstrated that
aggregating farmers can help achieve
economies of scale. The benets accord-
ed to start-ups under the Start-up India
Mission need to be extended to FPOs as
well. National Bank for Agriculture and
Rural Development (NABARD’s) model of
joint liability groups can be promoted to
channelize small growers into the value
chain.
Strategy for
New India @ 75
34
• Research & development
o
Focus on precision agriculture
: Support
research on energy friendly irrigation
pumps, micro irrigation, climate smart
technologies, internet of things (IoT), and
use of technology in animal husbandry
to monitor animal behaviour, health
and production to prepare for future
challenges.
o
Raise research spending
: Research
spending, currently at 0.3 per cent, needs
to be increased to at least 1 per cent of
agricultural GDP.
o
Create a knowledge hub to disseminate
best practices
: It is essential that new
technology be adopted at the farm
level. The performance of
Krishi Vigyan
Kendras
(KVKs) should be regularly
reviewed by external agencies and well
performing KVKs must be strengthened
to disseminate best practices at the eld
level.
o
Develop models of integrated farming
:
Research so far has focused on practices
for individual crops or enterprises. The
Indian Council of Agricultural Research
(ICAR) and State Agriculture Universities
(SAUs) should focus on providing
recommendations across the farming
value chain, covering production, post-
production, processing and other value-
addition activities.
• Innovation
Several breakthroughs have the clear potential
for quickly doubling farmers’ income.
o One is the recorded success of zero budget
natural farming by Subhash Palekar. It is
now being adopted across the country and
providing notable increases in farmers’
net income by sharply reducing costs of
production and improving incomes by
raising yields and improving the quality of
agricultural produce.
o Two, there are patented herbal inputs
that improve soil quality and make plants
more pest resistant. These herbal inputs,
for which actual performance data is now
available for a few thousand farmers, need
to be applied across the country.
o Three, rapid progress has also been made
in organic farming techniques, which have
also helped improve incomes of cultivators
and dairy farmers. These should be
carefully examined for possible application
across the country.
• Non-farm income
o Moving labour out of agriculture into
manufacturing will go a long way towards
the goal of doubling farmers’ income.
According to estimates prepared by Chand,
Srivastava & Singh (2017), nearly two-
thirds of rural income is generated in non-
agricultural activities. In non-agricultural
activities in rural areas, another avenue is
shifting farmers to agro-business and farm-
related skills which are currently in short
supply. Create and nurture agripreneurs for
achieving greater value addition through
agro-processing and propagation of
modern extension services.
o India will also have to accelerate growth
in the manufacturing, services and
exports sectors to wean labour away
from agriculture. This will result in higher
productivity and income for farmers.
35
________________________________________
1
Agriculture Census 2010-11.
2
Latest data on FHP is available only for 2015-16. Where state weighted average was not available or FHP was not available, the
FHP for 2014-15 was increased by an amount equal to the MSP increase between 2014-15 and 2015-16. The annual retail price has
been derived by taking a simple average of monthly prices across states.
3
Committee on Doubling Farmers’ Income, Ministry of Agriculture & Farmers Welfare (2017). Volume XIII: Structural Reforms and
Governance Framework. New Delhi.
4
Committee on Doubling Farmers’ Income, Ministry of Agriculture & Farmers Welfare (2017). Volume XIII: Structural Reforms and
Governance Framework. New Delhi.
Strategy for
New India @ 75
36
Objectives
• Transform the rural economy through the
creation of modern rural infrastructure and an
integrated value chain system.
• Leverage the value chain to boost India’s
exports of food products.
• Create occupational diversication and quality
employment opportunities for doubling farmers’
income by 2022-23.
Current Situation
Despite rapid progress, rural India suffers from
an infrastructure decit. The present government
has done an admirable job in achieving full
village electrication and accelerating the pace of
7. Doubling Farmers’ Income (III):
Value Chain & Rural Infrastructure
Figure 7.1: Additional markets required by 2022-23
Source: Ministry of Agriculture & Farmers’ Welfare
37
Source: National Centre for Cold Chain Development (2015)
connecting habitations through the
Pradhan Mantri
Gram Sadak Yojana
(PMGSY). Similarly, household
electrication has been given a signicant push
under the
SAUBHAGYA
scheme. Agriculture
infrastructure, such as rural markets, warehouses,
cold chain, farm machinery hubs and public
irrigation need upgradation.
Based on the recommendations of the Dalwai
Committee on Doubling Farmers’ Income, the
number of additional markets required comes to
3,548. The recent 2018-19 budget announcement
to develop the existing 22,000 Rural Periodic
Markets (RPMs) into
Grameen
Agriculture Markets
(GrAMs) will offer better market access to small and
marginal farmers. This initiative recognises GrAMs
as facilities for rst stage post production activities,
enabling aggregation and transport from the
village level to wholesale markets. The electronic
national agriculture market (e-NAM) was launched
in 2016 to create a unied national market. So far,
479
mandis
across 14 states and UTs have been
integrated on the platform.
The lack of an adequate and efcient cold chain
infrastructure leads to massive post-harvest losses,
estimated at INR 92,561crore annually.
1
Perishables
account for the bulk of post-harvest losses. Moreover,
as a recent report indicates,
2
most existing cold
storages are single commodity storages, resulting
in their capacities lying idle for up to six months a
year. The cold-chain infrastructure is also unevenly
distributed among states.
Inadequate cold-chain infrastructure hampers
India’s food exports as well. Countries across
the world have stringent guidelines for import
of agricultural and processed food products.
The European Union (EU) has raised more
notications, issued more rejections and destroyed
more consignments from India as compared to
consignments from other developing countries
such as Turkey, Brazil, China and Vietnam.
3
India
has huge export potential, reected in the fact that
its domestic commodity prices were below export
parity prices in 72 per cent of cases.
4
The present government has taken several steps
to modernise the agri value chain. The SAMPADA
central sector scheme aims to supplement
agriculture by modernising processing activities
and decreasing agri-waste. Similarly, in the 2018-
19 budget, ‘Operation Green’ on the lines of
‘Operation Flood’ was announced. This scheme
aims to promote farmer producer organisations,
agri-logistics, processing facilities and professional
management of such operations.
Table 7.1: Gaps in cold-chain development
Type All-India Requirement 2015 Status on 31.12.2017
Pack-houses 69,831 20,864
Cold Storage (million) 34.16 MT 35.88 MT
Reefer Vehicles 52,826 1,047
Ripening Chambers 8,319 443
Strategy for
New India @ 75
38
Constraints
1. Public and private investments in agriculture
have remained low since the early 90s.
Bottlenecks in implementation and a high
degree of uncertainty have further reduced
investor appetite for agricultural investments.
2. Inability to acquire land for setting up of market
yards, resulting from the restrictions on land
leasing and land acquisition, is another major
constraint.
3. Even the existing marketing infrastructure
suffers because of a lack of nances,
manpower and proper facilities. Sub-market
yards largely function as a location for
government procurement and do not provide
opportunities for open auction. Further, they
are irregular in their operations and handle
less than ve per cent of the volume handled
in principal yards.
4. Poor maintenance of rural roads is a major
constraint as well. Linkages with local and
feeder roads remain sub-optimal.
5. In the electricity sector, separate feeders for
supply of power to agriculture and domestic
electrication have not been carried out in many
states.
6. Lack of agriculture best practices hinders
India’s food exports. Interventions at the farm
or producer level are needed to ensure that
products meet export standards. However,
factors such as the lack of a traceability
mechanism from the farm to the consumer,
fragmented holdings and restrictions on
direct procurement of products from farmers
in some states makes it virtually impossible
to ensure that products meet export quality
standards.
Way Forward
Markets and value chain
Infrastructure status for agriculture value chains
:
Warehousing, pack-houses, ripening chambers, and
cold storages, including those set up at the village
level, should be accorded full-edged infrastructure
status to enable them to avail of the scal benets
that come with infrastructure status.
Village level procurement centres
: To benet small
and marginal farmers, government collection
centres and warehousing facilities should be
set up at the village/block level. The budget
announcement of developing Gramin Agricultural
Markets (GrAMs) will help develop the agricultural
marketing infrastructure and bring markets closer to
the farm-gate.
Link production to processing
: Village level
collection centres for fruits and vegetables should
be linked to larger processing units. Actively engage
the private sector in developing processing centres
near rural periodic markets (RPMs).
Food processing
: A greater focus should be
placed on the food processing industry for
enhancing value addition in vegetable and
fruit crops. The government has now shifted its
attention to promoting “agripreneurs”. This will
result in rapid modernization of the agriculture
sector.
Rural markets
: Develop private market yards.
Agro-processors and food processors that wish to
establish backward integration to secure their raw
material should partner with the government in
organizing sourcing through the RPMs.
Upgrade wolesale markets
: Upgrade wholesale
markets with facilities for temporary storage, pack-
house operations and cold storage facilities.
39
Warehouse upgradation
: Pledge nancing at
warehouses, through negotiable warehouse
receipts (NWR), needs to be adopted and
popularized as an alternative means of nancing.
The Department of Agriculture and Farmers’
Welfare (DACFW) should draw up guidelines to
promote warehouse based post-harvest loans and
e-NWR trading.
Block level resource centres
: Establish functional
block level resource centres to create value chains,
targeting clusters of villages along with social
services. It will create an integrated solution for the
farmer to access his/her requirements for agriculture
and other services. It will also add to employment
generation at the local level by engaging youth and
creating village level entrepreneurs.
Convergence in government initiatives
: Coordination
is needed between the initiatives of the Ministry
of Agriculture, Food Processing, and Commerce to
develop effective procurement linkages, processing
facilities, retail chains and export activity. This will
facilitate synergies between various initiatives
such as the
Rashtriya Krishi Vikas Yojana
(RKVY)
of the agriculture ministry, viability gap funding
of the Ministry of Commerce for cold chains and
warehousing infrastructure development and
Pradhan Mantri Kisan Sampada Yojana
of MOFPI.
Strengthen railway freight operations
: Railway
freight operations should be strengthened through
temperature-controlled containers and loading and
unloading facilities to reduce post-harvest losses
and connect land-locked states to export markets.
Rural roads, electricity and mechanization
Maintenance of rural roads through women
SHGs
: The maintenance of roads by women SHGs
has been experimented with by some states
(Uttarakhand for example) and has been found to
be very promising. This model could be replicated
by other states.
Revisit criteria for identication of rural habitats for
road connectivity
: To ensure better inclusion, the
criteria for identication of habitats for rural roads
connectivity in hill and left-wing extremism (LWE)
affected districts must be revisited.
Incentivize feeder separation
: All distribution
companies (DISCOMs) need to be incentivized for
rural feeder separation. Agriculture connections and
electricity supply feeders should be separated from
domestic rural electricity supply.
Incentivize private investment in farm implements
:
Private entrepreneurs should be incentivized to
establish small farm implement mechanization hubs
for every 1000 ha and big machinery hubs for every
5000 ha of cultivated area.
Export enablers
Develop export oriented clusters
: The Agricultural
and Processed Food Export Development Authority
(APEDA) has been championing the development of
export-oriented clusters with common infrastructure
facilities. These clusters should contain a functional,
end-to-end cold chain system along with processing
facilities.
Increase the number of testing laboratories
:
There exists a shortage of testing laboratories,
essential for health certicates for exports. Private
laboratories should be extended nancial support to
achieve international accreditation. As suggested by
APEDA, agricultural universities should also seek to
get their labs accredited by APEDA.
Augment cargo handling facilities at airports
:
APEDA has suggested augmenting the capacity of
the Ahmedabad Air Cargo Complex and Mumbai
Airport to handle agricultural cargo.
Strategy for
New India @ 75
40
Green channel clearance
: Efforts must be made to
setup a green channel for perishable produce at
identied airports handling cargo.
Regulatory frameworks to combat rejections in
export markets
: Regulatory frameworks regarding
use of pesticides, growth hormones, and antibiotics
for marine produce need to be developed and
implemented effectively to curb the rejection rate in
the export market.
Ensure traceability mechanism
: Promotion of farmer
producer organizations (FPOs), export-based clusters
and contract farming will go a long way towards
ensuring traceability of farm produce, a key export
requirement.
________________________________________
1
ICAR-Central Institute of Post-Harvest Engineering and Technology (CIPHET).
2
Grant Thorton and ASSOCHAM (2017), Food Processing Sector: Challenges and Growth Enablers <http://www.grantthornton.in/
globalassets/1.-member-rms/india/assets/pdfs/food_processing_sector.pdf>. Accessed April 12, 2018.
3
Goyal, Mukherjee and Kapoor (2017). India’s Exports of Food Products: Food Safety Issues and Way Forward. ICRIER: New Delhi.
4
Gulati and Saini (2017). Price Distortions in Indian Agriculture. ICRIER: New Delhi.
41
Objectives
• Banking for the unbanked
o Bank accounts: Ensuring universal access to
bank accounts, which are a gateway to all
nancial services.
o Digital payment services: Providing access to
digital payment services and increasing its
penetration.
• Securing the unsecured
o Insurance and social security: Ensuring
universal coverage of insurance for life,
accidents, etc., and of pensions and other
retirement planning services.
o Asset diversication: Allowing diversication
of asset portfolio of households through
increased participation in capital markets.
• Better access to credit at a reasonable cost
for those presently excluded
Current Situation
The government has launched many agship
schemes to promote nancial inclusion and
provide nancial security to empower the poor and
unbanked in the country. These include the
Pradhan
Mantri Jan Dhan Yojana, Pradhan Mantri Mudra
Yojana,
Stand-Up India Scheme,
Pradhan
Mantri
Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha
Bima Yojana, and Atal Pension Yojana.
In addition,
the promotion of
Aadhaar
and direct benet transfer
schemes facilitate nancial inclusion.
These schemes have led to signicant progress.
According to World Bank data, in 2014, 53 per
cent of adults had a bank account. This increased
to 80 per cent in 2017, which is now comparable
to China.
1
Many recent independent studies have
documented the increased ownership and active
use of bank accounts because of the
Jan Dhan
scheme.
2
There has also been an increase in
the penetration of low cost insurance schemes
and pension schemes. Even as the importance of
nancial assets is increasing for Indian households,
physical assets continue to be the predominant
asset class for savings for them.
Awareness and use of mobile payments in India
had been low. In 2016, the percentage of the
population using mobile money services in India
was only 1 per cent, compared to Bangladesh
(40 per cent), Pakistan (9 per cent), Kenya (81 per
cent) and Tanzania (61 per cent).
3
Many of these
models in other countries have been driven by
non-banking providers such as telecommunication
companies, using modes of communication such
as Unstructured Supplementary Service Data
(USSD). However, after demonetization and the
launch of the
BHIM
platform, penetration of
mobile payments has improved. Several new
initiatives such as
Aadhaar
-enabled payment
services, payment banks, etc. will boost the use of
mobile payments.
In terms of credit access, India has considerable
ground to make up. In 2016, the number of loan
accounts per 1,000 adults was 154 in India. In
comparison, the number of loan accounts per
8. Financial Inclusion
Strategy for
New India @ 75
42
0% 20% 40% 60% 80% 100%
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Share of household savings (%)
Year
Financial
Physical
Gold & Silver
0
20
40
60
80
100
120
140
160
180
200
0
5000
10000
15000
20000
25000
30000
35000
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Number of transactions (Million)
Transaction amount INR. Crores)
Figure 8.1: Distribution of household savings across physical and nancial assets
Figure 8.2: Growth in unied payment interface (UPI) usage
Source: First Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17,
Central Statistics Ofce, January 2018
Source: UPI Product Statistics: National Payments Corporation of India (NPCI)
43
1,000 adults was 88 in Bangladesh, 26 in Pakistan,
417 in South Africa, and 231 in Kenya. Similarly,
bank credit to GDP ratio in India is 51 per cent, as
compared to 98 per cent in China in 2016.
4
Constraints
1. Lack of nancial literacy amongst low income
households and small informal businesses.
2. The high cost of operations of the traditional
banking model.
3. Excessive regulatory requirements on products,
and market entry, and conservative regulatory
approach to new technologies.
Way Forward
1. Launching a new scheme for comprehensive
nancial literacy
• An
Arthik Shiksha Abhiyan
will help improve
nancial literacy and may be integrated in the
regular school curriculum. Besides, efforts to
improve nancial literacy should be complemented
by mass media campaigns to provide information
on nancial products and their use.
2. Assess the performance of banking
correspondents and give better incentives
• Given the infeasibility of locating branches in
every nook and corner of the country, bank
correspondents are used to reach out to
prospective clients. However, an inadequate
compensation structure makes correspondent
banking unattractive. The issue of inadequate
training is being addressed by the RBI which
has developed a framework for certication for
both basic and advanced levels. There is also
a need to create better monetary incentives for
banking correspondents as well as to provide
them better training.
3. Facilitating growth of online and paperless
banking
• Paperless banking will reduce friction,
documentation proof requirements and the cost
of banking services. This, in turn, will bring
a larger proportion of the population within
the ambit of the formal nancial system. The
following actions are required on the policy
front:
o Ease transaction limits for e-KYC based
deposit and loan accounts.
o Push digital signature for loan accounts
by asking public sector banks to carry out
at least 25% of their transactions through
paperless accounts by 2022-23.
o Expand digilocker services by including
more issuers of documents.
4. Using technology to improve the assessment
of credit-worthiness for households and
informal businesses
• One of the main constraints in providing low-in-
come households and informal businesses is the
lack of information available with formal creditors
to determine their credit worthiness. This results in
high cost of credit. This constraint can be over-
come by the adoption of appropriate technology.
• Create a new data-sharing framework that
builds on the success of
Jan Dhan
and
Aadhaar
platforms to enable easier access to credit,
with adequate safeguards for maintaining data
privacy.
• Existing gaps in land records such as transfers
of ancestral properties, conversion to free
hold, regularization of colonies, extension of
limited tenure pattas, etc., need to be lled. In
addition, a central land holding register could
be prepared and maintained in a digital format.
Strategy for
New India @ 75
44
In addition to greater digitization, there is also a
need to strengthen cyber security in the country.
A common cyber security framework across
different stakeholders should be created.
5. Leverage payment banks and other
platforms to scale up payments systems in
underserved areas
• Post ofces are familiar sights in all villages.
Payment banks, including the India Post
Payment Bank, can potentially revolutionize the
payments system like telecom companies did
in Africa and other South Asian countries, with
innovative products like mobile money.
• A exible and proactive approach towards
regulations on payment banks, such as
regulations on minimum capital requirements,
transaction amounts, and restriction on
investments, should be adopted to ensure that
the payment bank model becomes commercially
viable and scalable.
• Payments through the USSD channel have an
advantage over the internet in that it can also
cover a large proportion of non-smartphone
users. This has been the experience from the
successful scale up of payments systems in
many African countries. In India, USSD can be
particularly useful in rural areas where some
segments still do not have reliable access to
the internet. Thus, the USSD channel should be
promoted for government and non-government
payment platforms. Further, fee on failed USSD
transactions should be refunded to consumers
to enable greater participation.
6. Overhaul the regulatory framework
governing formal nancial products to
attract households
• Household acceptance of formal nancial
products, such as insurance, equity, etc., can
be increased if regulations governing these are
simplied and made more consumer-friendly.
• Instances of mis-selling of nancial products to
households needs to be tackled by overhauling
the regulatory framework. Disclosure
requirements for insurance and pension
products need to be strengthened to make it
easier for consumers to understand them.
• Simplication and relaxation of insurance sector
regulations – Substantial simplication of broker
regulations can be made. Further, restrictions on
payment of incentives and bonuses to agents in
insurance can be removed.
• KYC restrictions in the capital markets can be
eased and linked to other KYC information to
enable ease of doing business and increase the
participation of retail investors.
• The lock-in period for gold bonds should be
reduced to make them more attractive.
________________________________________
1
The Global Findex Database 2017, World Bank. Accessed June 14, 2018.
2
The Progress of Financial Inclusion in India: Insights from Multiple Waves of Survey Data”, Manuela Kristin Günther, Overseas Devel-
opment Institute, 25 May 2017; “Banking the Unbanked: What Do 255 Million New Bank Accounts Reveal about Financial Access?”,
Sumit Agarwal, Shaswat Alok, Pulak Ghosh, Soumya Ghosh, Tomasz Piskorski, Amit Seru, Columbia Business School Research Paper
No. 17-12; Georgetown McDonough School of Business Research Paper No. 2906523; HKUST Finance Symposium 2017; Indian
School of Business WP 2906523. October 2017; “Bank Accounts for the Unbanked: Evidence from a Big Bang Experiment”, Yakshup
Chopra, Nagpurnanand Prabhala, Prasanna L. Tantri, Robert H. Smith School: Research Paper No. RHS 2919091; Indian School of
Business WP 219109, May 2017.
3
IMF Statistics.
4
IMF Statistics.
45
Objectives
• Provide every family with a pucca house, with
a water connection, toilet facilities, and 24x7
electricity supply and access.
• Build 2.95 core housing units in rural areas and
1.2 crore housing units in urban areas.
Current Situation
The President’s clarion call to ensure the provision
of houses to every family remains the key objective
of the ‘Housing for All’ scheme. Following this
announcement, the government has made it clear
that one of its key priorities is to ensure safe and
affordable housing for all. This mandate also
includes upgradation of slums. Recent estimates
of the Ministry of Rural Development and Ministry
of Housing and Urban Affairs indicate a housing
shortage of nearly 3 crore units in rural areas and
1.2 crore units in urban areas. Achieving the goal of
‘Housing for All’ will be a big step in the realization
of New India Vision 2022 that will trigger economic
growth and create millions of jobs for skilled as well
as unskilled workers. Moreover, given the forward
and backward linkages of the housing sector,
the focus on affordable housing could bring rich
dividends for other distressed sectors such as steel
and cement.
Since 1985, the Government of India has been
implementing a rural housing scheme for families
living below the poverty line (BPL). A new scheme,
the
Pradhan Mantri Awas Yojana
(Gramin –
PMAY-G) was launched in 2016. This scheme now
provides per unit assistance of INR 1,20,000/- in
plain areas and INR 1,30,000/- in hilly states/
integrated action plan districts/difcult areas. This
support is provided to homeless families or to
those who live in
kutcha
houses as per the Socio-
Economic Caste Census (SECC), 2011 data.
PMAY-G is converged with
Swachh Bharat Mission
(Gramin) and
Mahatma Gandhi National Rural
Employment Guarantee Scheme
(MGNREGS) for the
construction of sanitary toilets and also to provide
the unskilled wage component.
Under PMAY-G, it was proposed to build one crore
rural houses in three years between 2016-17 and
2018-19. The estimated nancial requirement
for the construction of one crore houses in these
three years is INR 81,975 crore. During 2016-17,
about 32.14 lakh houses were constructed. For the
nancial year 2017-18, the government set a target
of completing 51 lakh houses; 51.38 lakh houses
had been sanctioned and 44.54 lakh houses (i.e.,
87.29 per cent of the target) had been completed
by the end of March 2018.
Under the
Pradhan Mantri Awas Yojana
(Urban-
PMAY-U), the mission aims to achieve the objective
of ‘Housing for All’ by 2022 through its four pillars
– a) in-situ slum redevelopment; b) affordable
housing through a credit linked subsidy scheme; c)
affordable housing in partnership between public
and private agencies and d) subsidy for beneciary-
led individual house construction or enhancement.
For nancial year 2017-18, the PMAY (Urban)
9. Housing For All
Strategy for
New India @ 75
46
targeted the sanctioning of 25 lakh houses and
completing the construction of at least half the
sanctioned strength. Against the mission target of
1.2 crore, 44.36 lakh houses have been sanctioned
and 4.01 lakh houses had been completed by the
end of March 2018.
Constraints
The ‘Housing for All’ scheme faces the following key
constraints:
• Lack of access to nance from formal nancial
institutions.
• Long-drawn out, multi-level approval system
in urban areas in a large majority of municipal
jurisdictions.
• For several categories of houses or those in
particular locations, these delays are common
even where a single window system has
reportedly been introduced.
• Limited private sector participation in affordable
housing schemes in urban areas.
• Predominance of conventional construction
practices that result in delayed progress
in urban areas and the limited use of pre-
fabricated and pre-engineered materials.
• Limited access to suitable land banks for
affordable housing projects.
• Continued rise in the number of slum dwellers.
• Insufcient number of trained masons despite
the operation of the Construction Sector Skills
Development Council since 2013.
• Capacity constraints in urban local bodies (ULBs)
to formulate and design mass housing projects.
Figure 9.1: Multi-pronged approach to resolving constraints in the
‘Housing for All’ scheme
2
Long-drawn out, multi-level approval system in urban areas in a large majority of
municipal jurisdictions
For several categories of houses or those in particular locations, these long delays are
common even where a single window system has reportedly been introduced.
Limited private sector participation in affordable housing schemes in urban areas
Predominance of conventional construction practices that result in delayed progress in
urban areas and the limited use of pre-fabricated and pre-engineered materials
Limited access to suitable land banks for affordable housing projects
Continued rise in the number of slum dwellers
Unavailability of sufficient number of trained masons despite the operation of the
Construction Sector Skills Development Council since 2013
Capacity constraints in urban local bodies (ULBs) to formulate and design mass housing
projects
WAY FORWARD
The strategies to overcome the constraints on affordable housing can be grouped into the following
categories: 1) access to finance; 2) technology for construction; 3) reducing costs and 4) efficient
use of land.
Figure 1: Multi-pronged approach to resolving constraints in the ‘Housing for All’ scheme
1. ACCESS TO FINANCE
To ensure greater access for the poor to institutional finance, the Department of
Financial Services should consider a sub-category under priority sector lending (PSL)
for affordable houses. It should also consider relaxing eligibility conditions for bank
Housing for All
by 2022-23
Access to
Finance
Technology
for
Construction
Reducing
Costs
Efficient
land use
47
Way Forward
The strategies to overcome the constraints on
affordable housing can be grouped into the
following categories: 1) access to nance;
2) technology for construction; 3) reducing costs
and 4) efcient use of land.
1. Access to nance
• To ensure greater access for the poor to
institutional nance, the Department of
Financial Services should consider a sub-
category under priority sector lending (PSL)
for affordable houses. It should also consider
relaxing eligibility conditions for bank loans
such as raising the cap of INR 10 lakh on the
cost of the house and raising the INR 2-lakh
income threshold.
• The government should continue to raise
funds commensurate with the ‘Housing for All’
targets. The Union Budget 2018-19 announced
the setting up of an Affordable Housing Fund
in the National Housing Bank (NHB). It would
achieve greater synergies among agencies
that are implementing government housing
schemes. It would also enable the NHB to
mobilize larger funds for housing projects. The
Budget for 2018-19 has already announced
increased allocations for PMAY (Gramin) to INR
33,000 crore and to INR 25,000 crore for PMAY
(Urban) through internal and extra budgetary
resources.
2. Technology for construction
• Sixteen new emerging technologies have been
identied, evaluated and promoted under
PMAY(U). These fall under formwork systems
(3), precast sandwich panel systems (6),
light gauge steel structural systems (2), steel
structural systems (2) and precast concrete
construction systems (3). These alternate and
sustainable technologies offer safer and disaster
resilient affordable housing. These will also
improve the quality of construction in a cost
effective and environment friendly manner
across states/regions and achieve economies of
scale in urban areas.
• A Global Housing Technology Challenge has
been launched. It will bring internationally
proven construction technologies for adoption
in India, enabling us to learn from the best
practices from similar economies around the
world.
• The success of the East Kidwai Nagar
redevelopment project in Delhi may be
replicated wherever possible. The key feature is
the replacement of old style public housing that
suffered from grossly inefcient use of land with
a modern, space optimising housing design.
• It is necessary to ensure convergence of
provisions under the National Urban Livelihood
Mission,
Pradhan Mantri Kaushal Vikas Yojana
,
Construction Skill Development Council of India
and MGNREGS (for rural areas) for large-scale
training of masons to meet construction targets.
• There is need for a major push in the form of
slum development programmes in urban areas.
A National Mission for Slum Rehabilitation will
bring a greater focus on making the country
slum free.
3. Reducing costs
• Government projects should focus on the life
cycle cost (LCC) approach to the construction
of houses rather than the cost per square foot
approach to ensure quality of construction
and reduce expenditure incurred on the
maintenance of houses.
Strategy for
New India @ 75
48
• Fiscal support should be provided to companies
that use recycled products made from
waste. The use of such products should be
standardized and adapted to shortlisted design
types and pre-fabricated technologies.
• Regulatory complexities should be rationalized
and a single window approval system adopted
to reduce the time taken to construct houses in
urban areas. The timeline for granting approvals
should be specied and if approvals are not
accorded within the stipulated time period, it
should be treated as deemed approval.
• Financial engineering, like ‘rental-cum-
ownership housing’ in which houses are initially
offered on rent and ownership is transferred
to the tenant once the cost of the unit is
recovered, should be adopted.
4. Efcient use of land
• The land lying idle with various sick/loss making
public sector undertakings(PSUs) of the central/
state governments may be used to resolve the
issue of land availability for affordable housing
projects under ‘Housing for All’.
• The Department of Public Enterprises (DPE)
should expedite release of land parcels
available with central PSUs that have been
identied for affordable housing projects.
• As suggested in the NITI Aayog’s Three-Year
Action Agenda, Indian cities have focused on
horizontal growth for far too long. It should
now focus on vertical growth. The following
measures can be taken to accelerate vertical
growth:
o Launch a mass campaign to sensitize
cities and states on the benets of vertical
growth.
o Provide capacity building to states and
cities willing to undertake measures
towards vertical growth.
o Provide considerable rewards to cities that
relax their oor space index (FSI) norms.
One of the key reasons behind India’s
horizontal sprawl is stringent FSI norms.
The discussion on changing FSI norms
considering trunk infrastructure and other
social issues needs to be expedited across
India.
o Provide additional central government
funding to cities that undertake FSI reforms
under the Smart Cities Mission.
In addition to the measures outlined above, urban
governance reforms, such as removing the need to
obtain permission for non-agricultural use in the
case of land that has been earmarked for residential
purposes in master plans, amending rental laws
and others, have the potential to alleviate the
challenges to achieving the goal of ‘Housing for All’
by 2022-23.
49
Objectives
• Increase India’s share in global international
tourist arrivals from 1.18 per cent to 3 per cent.
• Increase the number of foreign tourist arrivals
from 8.8 million to 12 million.
• Double the number of domestic tourist visits,
from 1,614 million in 2016 to 3,200 million
visits.
Current Situation
There has been signicant progress in the travel,
tourism and hospitality sector in the last decade
but there is much further room for improvement.
India moved up 12 places from 52nd to 40th in
the World Economic Forum’s Travel and Tourism
Competitiveness Index in 2017. Foreign tourist
arrivals have increased from 5.1 million in 2009 to
8.8 million in 2016; yet they account for less than
1 per cent of global tourist arrivals. With 35 world
heritage sites, 10 bio-geographical zones and 26
biotic provinces, India has signicant potential to
increase the number of tourist arrivals.
The sector is an important contributor to national
income. In 2017-18, India’s travel and tourism
sector accounted for foreign exchange earnings
of USD 22.92 billion. Hotels and tourism also
accounted for USD 0.9 billion of foreign direct
investment (FDI) in 2016-17, making up around
3 per cent of total FDI between April 2000 and
October 2017.
1
Domestic tourism plays a key role
within the sector. In 2016, domestic tourist visits
to all Indian states and union territories numbered
1614 million, an increase of about 13 per cent from
the previous year.
10. Travel, Tourism and Hospitality
Foreign Tourist Arrivals:
8.8 Million
Domestic Tourists Visits to all
States/UTs: 1613.6 million
Employment (Direct and
Indirect): 40.3 Million
Foreign Exchange Earnings
from Tourism: USD 22.92
Billion
Travel and
Tourism
Figure 10.1: Contribution of travel and tourism in India, 2016
Source: Ministry of Tourism, India
Strategy for
New India @ 75
50
As a highly labour-intensive sector, tourism has
the capacity to generate large-scale, good quality
employment. In 2016, it accounted for 25 million
direct and more than 14 million indirect jobs. Direct
jobs in the sector made up 5.8 per cent of India’s
total employment. Together, direct and indirect jobs
accounted for 9.3 per cent of total employment. The
sector has multiple forward and backward linkages
with further job generating potential in sectors such
as agriculture, retail, transport and nancial services.
Recognizing the sector’s potential to generate
income and employment, the government has
undertaken several measures to strengthen
infrastructure and facilitate tourism. India recently
introduced tourist visa on arrival, enabled with
electronic travel authorization (ETA) (renamed as
the “e-Tourist Visa”) for tourists from 150 countries.
2
The Ministry of Tourism has launched a round-the-
clock, toll-free tourist helpline in 12 international
languages. The government has launched several
schemes to develop tourist circuits; develop our
islands as tourist destinations; build large-scale
convention centres in different cities; improve
connectivity and develop niche offerings such as
medical tourism and pilgrimage-based tourism.
Constraints
• Entry/exit: Despite the introduction of an e-visa
facility, visitors nd the process of applying for a
visa still cumbersome. Further, awareness about
the e-visa facility remains low. In addition,
medical e-visa holders face difculties because
of the limited number of repeat visits allowed
under the visa, the number of accompanying
persons permitted and cumbersome registration
processes.
• Infrastructure and connectivity: Deciencies
in infrastructure and inadequate connectivity
hamper tourist visits to some heritage sites.
• Tourism segments or circuits: India has
various tourist destinations but few circuits or
segments such as the Golden Triangle (Delhi-
Agra-Jaipur).
• Promotion and marketing: Although it has
been increasing, online marketing/branding
remains limited and campaigns are not
coordinated. Tourist information centres are
poorly managed, making it difcult for domestic
and foreign tourists to access information with
ease.
• Skills: The number of adequately trained indi-
viduals for the tourism and hospitality sector is
a key challenge to giving visitors a world-class
experience. A limited number of multi-lingual
trained guides, and the limited local awareness
and understanding of the benets and respon-
sibilities associated with tourist growth act as
constraints on the sector’s growth.
Way Forward
1. Entry/exit for tourism
• Increase e-visa awareness globally by
launching an information campaign through
our consulates abroad. It is also necessary to
launch an e-visa regime to attract clientele
from the meetings, incentives, conferences and
exhibitions (MICE) market. To attract repeat
visitors, the validity period of e-visas may be
increased to 10 years.
• Enhance the number of annual visits allowed
under an e-medical visa. Currently, e-medical
visa holders are allowed three repeat visits
during their one-year visa period. This may not
be sufcient for patients who require follow-up/
post-operative care.
o Simplify the process of registering online
with the Foreigner Regional Registration
51
Ofces (FRRO). Establishing FRRO help-
desks at major Indian airports and hospi-
tals will provide visitors with the informa-
tion to complete the process online.
o Increase the number of accompanying
persons with e-medical visa holders from
two to up to four under the same visa, as
has been done in countries like Malaysia.
2. Infrastructure and connectivity
• Tourism infrastructure projects, viz., hotels,
resorts, equipment, parks etc., having a project
cost more than INR 1 crore should be notied
as ‘infrastructure’ to enable promoters to avail
loans on a priority basis.
• Conservation and development of all heritage
sites should be undertaken and completed
through either government funding or
through NGOs/Corporate Social Responsibility
(CSR) activities. The Ministry of Tourism’s
Swadesh Darshan
and National Mission on
Pilgrimage Rejuvenation and Spiritual Heritage
Augmentation Drive (PRASHAD) schemes
are already undertaking the development or
maintenance of heritage sites.
3,4
The number
of projects sanctioned under this scheme
should be increased and their implementation
accelerated.
• Increase domestic tourist trafc by upgrading
existing infrastructure and leasing out the main-
tenance of such infrastructure to private players.
New destinations can be developed around the
metros using the PPP model.
• Improve ight connectivity to tourist destina-
tions through the timely implementation of the
Ministry of Civil Aviation’s Regional Connectivity
Scheme – UDAN (RCS-UDAN). Larger cities like
Delhi, Mumbai, Kolkata and Chennai should be
converted into efcient and seamless transit hubs.
3. Building tourist circuits or segments
• Develop the marine leisure industry by issuing
national boating guidelines to regulate the
industry in terms of safety, security, marina
development, nautical infrastructure for safe
access to water, cruising and charters, crewing
(skill training), rescue and rationalization of
import duties and local taxes to encourage the
growth of local boat building. This segment will
also help attract additional FDI into the sector.
• Promote river cruise tourism by making the
entire stretch of National Waterway No. 1, the
River Ganga, from Allahabad to the Farakkah
Barrage, fully navigable.
• Build deep-water marinas in the coastal areas
of India including in the Andaman and Nicobar
Islands and in Mumbai. Create enabling policies
that permit scuba diving or other activities
requiring boat travel.
• Promote India’s Buddhist circuit by increas-
ing coordination among all stakeholders and
improving connectivity. Tourism to the Buddhist
circuit can be greatly enhanced by increasing
promotion, building wayside amenities and
connecting lesser-known sites to core circuits.
We should also fully utilize the
Swadesh
Darshan
and existing schemes to promote this
circuit.
• Develop 100 “Smart Tourist Destination Sites”
showcasing theme-based museums and heri-
tage sites.
• Develop 100 “Model
Swachh
Tourist Destina-
tions” by undertaking a special clean-up initia-
tive focused on 100 iconic heritage, spiritual
and cultural places in the country.
• Develop at least ve “Beach Destinations” as
exclusive tourism zones.
Strategy for
New India @ 75
52
• Develop at least ve “World Class Museums”
drawing from world class museums such
as Bilbao or the Asian Civilization Museum
in Singapore. Further, ease the process of
accepting gifts by museums in India.
• Plan and develop ve globally competitive and
world-class national circuits from entry to exit.
4. Skill development
• Connect local communities to tourism by en-
couraging them to set up small enterprises to
supply the tourism industry (accommodation,
food and material). Employment opportunities
can be expanded by ensuring that investors and
operators in the organized sector are encour-
aged to hire staff locally.
• Local craftspersons, masons, carpenters and
labourers should be engaged for heritage conser-
vation and restoration activities to create jobs.
• Create a database of artisans based on the dif-
ferent craft forms they are associated with and
the areas where they live.
• Upgrade the skills of existing workers such as
taxi drivers, boat operators, guides, and restau-
rant and dhaba workers through state tourism
departments in association with local tourism
and hospitality institutes and industry.
o Expertise available with heritage hotels
may also be used for skill development in
the sector.
o Language competencies of tour guides
should be improved through a bridge
course conducted by the sector council all
across the country.
• Support private sector institutes in tourism
regulated by government to create the required
talent pool. This can be done by expanding the
number of private sector institutes or bodies
recognized as implementing agencies for
delivering the Ministry of Tourism’s
Hunar Se
Rozgar Tak
initiative to create employable skills.
• Create Centres of Excellence for leadership in
the tourism sector as a fulcrum of professional
education, research and advocacy to create
managers and entrepreneurs in tourism.
Additionally, ensure that tourism management
and leadership is included as a distinct course in
top management institutes in India.
• Enable access to markets for traditional
handicrafts producers by linking them with
global markets. The government should also
encourage the export of tribal handicrafts.
5. Promotion and marketing, especially with
respect to cultural sites
• Launch targeted promotional campaigns
in Asian countries such as China, Thailand,
Malaysia, Singapore and South Korea, using
digital media including TV advertisements.
• Design policies using data on consumer usage
to target marketing efforts and segments of the
population.
• Reconsider differential pricing for heritage
sites as the higher ticket price for non-Indians
leads to losing out on a large segment of youth
travellers.
• Consider establishing cultural centres in
additional countries to spread Indian culture
worldwide.
• Create an online portal of all heritage sites to
increase awareness regarding these.
• Ticketing and access to monuments and
museums.
53
o An online ticket distribution system for
heritage sites and wild life areas should be
developed with time slots to visit.
o Buying tickets at reception centres should
be streamlined to avoid long queues.
o Create common passes to visit multiple
heritage sites.
o Provide foreign exchange counters at each
tourist site.
o Tourist information centres should be
operated by trained personnel and must
have resources like maps, travel guides,
etc.
________________________________________
1
Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.
2
Ministry of Tourism Annual Report 2015-16, Government of India.
3
Ministry of Tourism, Swadesh Darshan Scheme website. Accessed May 12, 2018.
http://www.swadeshdarshan.gov.in/
4
Ministry of Tourism, Brochure for PRASAD scheme. Accessed May 11, 2018.
http://tourism.gov.in/sites/default/les/News/PRASAD%20Low%20Res%20-17_3_205_compressed.pdf
Strategy for
New India @ 75
54
Objectives
• Double the area explored from 10 per cent of
obvious geological potential (OGP) area to 20
per cent.
1
• Accelerate the growth of the mining sector from
3 per cent in 2017-18 to 14 per cent, with an
average growth of 8.5 per cent during 2018-23.
• Increase the job contribution (direct, associated
and indirect) from the current 10 million (2
million in coal and major metals and 8 million
in minor minerals) to 15 million in 2022-23.
Current Situation
India has huge mineral potential, as its prospective
geology is broadly similar to that of Western
Australia, especially in relation to iron ore, bauxite,
coal, diamonds, and heavy minerals sand. India
has identied 5.71 lakh sq. km as the obvious
geological potential (OGP) area, but only 10 per
cent of it has been explored and 1.5 per cent is
being mined.
This is one of the reasons why India’s imports
of minerals, estimated at INR 3,73,662 crore, far
outstripped, more than seven times, the value of
domestic production of minerals (excluding coal,
atomic and fuel minerals) of INR 47,432 crore in the
nancial year 2016-17.
2
India’s share in the global
production of metallic minerals, such as bauxite,
chromite, iron ore and manganese ore is relatively
high; India is ranked 4th to 6th among global
producers. In industrial minerals, India is a large
producer of zinc, aluminium and steel, ranking 5th,
5th and 3rd respectively.
Six major minerals producing states, viz., Odisha
Rajasthan, Andhra Pradesh, Chhattisgarh and
Karnataka, account for nearly two-thirds of the
value of minerals produced in the country.
3
In addition to the above, India also has large
potential to increase the production of minor
minerals. It is estimated that their share in the
value of production is about 26 per cent.
4
Even
though minor minerals have a small share in
value terms, their production is more labour
intensive as compared to major minerals. Thus,
they can be a source of large-scale employment
generation.
The sector has been affected by legalities. This has
restricted the scope of mining operations and raised
costs.
In 2015, the government amended the Mines and
Minerals (Development and Regulation) (MMDR)
Act to mandate auctions for the allocation of
exploration and mining rights for minerals under its
purview. The results have been encouraging.
Constraints
• Shortcomings in the licensing regime such
as the separation of auction of prospecting
licences and provision of mining licences, and
the different auction methodologies across
different sectors like coal, oil and minerals.
11. Minerals
55
Figure 11.1: India’s share in world production, 2015
8.1%
9.6%
8.2%
4.7%
4.0%
0.6%
0.6%
4.1%
3.5%
5.6%
1.4%
5.7%
0% 2% 4% 6% 8% 10% 12%
Coal & Lignite
Bauxite
Chromite
Iron Ore
Manganese Ore
Magnesite
Apatite & Rock Phospate
Aluminium
Copper (Refined)
Steel
Lead
Zinc (Slab)
India's share (%)
Category
Source: Ministry of Mines
• Heavy cost of acquiring land.
• High incidence of taxes, royalties and levies in
comparison to global standards (more than 65
per cent).
• Inadequate infrastructure resulting in
evacuation problems.
• Workforce productivity and skilling challenges
because of the disconnect between training
institutions and industry.
Way Forward
1. To facilitate participation by private
sector players in exploration, launch a
mission “Explore in India”, by revamping
the minerals exploration and licensing
policy
The policy should have the following features:
• For bulk or surfacial minerals, i.e., iron-
ore, bauxite, limestone etc, the provision of
“reservation” of areas for exploration by state
agencies should be utilised and such areas
should be allocated through the auction route
after the development of reserves.
• It is desirable for public sector units (PSUs)
and private sector companies to have a
level-playing field with respect to mining
concessions.
• An exclusive subset of rules to facilitate the
exploration of rare earth minerals through
private sector participation should be framed.
• Mining companies should be allowed the
freedom to co-mine other minerals found in the
same mining area.
Strategy for
New India @ 75
56
• To promote this sector we need to rationalize
tax structures and facilitate investment
including FDI. This would help both export
promotion and import substitution.
2. Single window and time-bound environment
and forest clearances
• While
PARIVESH
has been
launched on
August 10, 2018 as a single window hub
for environment, forest, wildlife and CRZ
clearances, the Ministry of Environment and
Forest (MoEF) should declare upfront inviolate
forest areas. This should specify whether
underground mining or open cast mining can
be done or not in these areas.
• All statutory approvals should mandatorily
be granted within 180 days of application for
exploration and mining of minerals. Further,
a provision for the issue of deemed approval
letters by a competent authority should be
incorporated in cases where delay beyond the
specied period has occurred.
• Local forest ofcers may be empowered to
grant permission under the FC Act, 1980 for
exploration in forest areas.
• State PSUs and the private sector should
also be allowed to undertake compensatory
afforestation on degraded government
forestland like central PSUs.
3. Boosting minor minerals through a relaxed
licensing regime
• Landowners/farmers/tribals need to be given
mining rights for minor minerals on their land, to
enable them to mine either on their own or by
outsourcing it, without auction or payment of an
additional 30 per cent of the royalty to the DMF.
• If the landowner does not intend to undertake
mining of minor minerals on her land, these
mining leases can be allocated through the
auction route.
4. Data repository, regulation and reporting
• A National Mineral Regulatory Authority, with
subordinate state authorities, may be created
to regulate the minerals sector to operate
transparently with internationally recognized
technical standards.
• A National Data Repository (NDR) of Mineral
Resources should be created and uploaded
online.
• Introduce a robust and transparent public
reporting mechanism for exploration rms,
which is compliant with the Joint Ore Resources
Committee (JORC) code or an equivalent code in
the statute.
• The huge mineral bearing areas reserved for
state agencies that have not been utilized for
more than 2 years should be de-reserved and
allocated to the end user industry/ auctioned.
• Instead of eld inspections, a system of self-
approval/self-certication with GIS based
monitoring should be adopted for enforcing
the provisions of the MMDR Act. This should
be accompanied with a provision for heavy
monetary penalties for each violation.
5. Other measures
• Immediate steps should be taken to reduce
rail freight charges for all minerals that are
available in India in abundance but are
imported because it is currently uneconomical
to transport them by rail.
• Rationalize taxation/royalty and other levies
on mining, capping it at a maximum of 40 per
cent of the sale value, as per global practice, to
make mining competitive globally.
57
• Mining engineering colleges should be
developed as centres for mineral exploration.
• Encourage technological upgradation by
reducing import duty, initially for a period of
ve to ten years, on equipment/cutting edge
technology to boost safety, limit environmental
damage, improve productivity and increase
growth.
• To enhance the resource base and ensure
mineral security, India should create an
organization for strategic acquisitions of mines
in other countries and to sign diplomatic and
trade agreements.
• Promote zero waste mining by incentivizing
leaseholders to utilize and sell sub-grade
minerals/rejects.
• As per the provision of Section 8A (6) of MMDR
Act, 2015, the 50-year or more lease granted to
288 non-captive mines will end on March 31,
2020. To ensure smooth transition in 2020 and
to avoid disruption in mineral supplies and job
losses, the Ministry of Mines should complete
the process of bidding for these mines one year
before the date of expiry.
________________________________________
1
This chapter includes all minerals, except for oil and gas resources.
2
Annual Report 2017-18, Ministry of Mines (import gures for gold taken from Ministry of Commerce).
3
Ibid.
4
Ibid (major minerals include coal also).
INFRASTRUCTURE
61
Objectives
The government’s on-going energy sector
policies aim “to provide access to affordable,
reliable, sustainable and modern energy”. At the
convergence of its domestic goals and the global
development agenda, it also intends to hit the
following milestones on the way –
• Make available 24x7 power to all by 2019.
• Achieve 175 GW of renewable energy
generation capacity by 2022.
• Reduce imports of oil and gas by 10 per cent by
2022-23.
• Continue to reduce emission intensity of GDP
in a manner that will help India achieve the
intended nationally determined contribution
(INDC) target of 2030.
Current Situation
India’s energy mix is dominated by coal with
a 49.6 per cent share, followed by oil (28 per
cent), biomass (11.6 per cent), gas (7.3 per cent),
renewable and clean energy (2.2 per cent) and
nuclear energy (1.2 per cent). India is the world’s
third largest energy consumer. However, in 2017,
its per capita energy consumption was about 625.6
kilogram of oil equivalent (kgoe) against the world
average of 1860 kgoe. The US and China’s per
capita energy consumption in 2015 was 6800 kgoe
and 2170 kgoe, respectively.
In the power sector, the all-India installed power
capacity is about 334 GW, including 62 GW of
renewable energy. The energy sub-sectors continue
to face challenges. On energy supply, India is still
heavily dependent on petroleum imports to meet
its requirements – we imported approximately 82
per cent of crude oil and 45 per cent of natural
gas requirements during 2017. Also, at present,
about 16000 km of gas pipeline networks exist.
The progress of 10,000 Km of pipeline bid out
by Petroleum and Natural Gas Regulatory Board
(PNGRB), which was to be completed by 2016-17, is
behind schedule.
In the coal sector, the government has recently in
2018 allowed commercial mining. Furthermore,
power sector companies, especially state
government utilities, continue to deal with difcult
nancial positions.
Due to energy efciency (EE) measures, demand
side management (DSM) and advanced technology
in the energy value chain, India’s energy intensity
declined from 0.158 koe/$ in 2005 to 0.122 koe/$
in 2016 at 2005 prices, indicating an efciency
increase of 22.8 per cent. The energy intensity of
the UK and Germany in the year 2016 were 0.074
koe/$ and 0.101 koe/$ at 2005 prices, respectively.
This indicates that India still has the potential to
improve energy efciency.
Constraints
The constraints on achieving the milestones set for
2022-23 can be divided into two broad categories –
overall energy sector and sub-sector specic.
12. Energy
Strategy for
New India @ 75
62
1. Overall energy
Subsidies and taxes:
• A variety of subsidies and taxes distort
the energy market and promote the use of
inefcient over efcient fuels.
• They also make Indian exports and domestic
production uncompetitive as energy taxes are
not under GST and hence, no input credit is
given. This is a serious lacuna.
2. Power
• Old inefcient plants continue to operate
whereas more efcient plants are underutilized.
• As the gap between the average cost of
supply (ACS) and average revenue realized
(ARR) persists due to high aggregate technical
and commercial (AT&C) losses, distribution
companies (DISCOMs) use load shedding to
minimize losses.
• Although legally independent, Regulatory
Commissions are unable to fully regulate
discoms and x rational tariffs.
• Unmetered power supply to agriculture
provides no incentive to farmers to use
electricity efciently.
• There is a lot of hidden demand because of
unreliable supply and load shedding.
• State power utilities are not able to invest in
system improvements due to their poor nancial
health.
• High industrial/commercial tariff and the
cross-subsidy regime have affected the
competitiveness of the industrial and commercial
sectors.
3. Oil & gas
• Non-discriminatory access for private and public
sector companies to the gas pipeline network
does not exist.
• Lack of market-driven gas prices for old elds
disincentivizes further production.
• The gas pipeline infrastructure is also
inadequate.
4. Coal
• Land for coal mining is becoming a major issue.
• There is a tendency to expand opencast mining
and discourage underground operation even for
better quality coal reserves. This aggravates the
land availability problem.
• There is no competitive coal market.
5. Renewable energy
• High energy costs result in reneging on old
power purchase agreements (PPAs) and
erode their sanctity. This leads to uncertainty
regarding power offtake and consequently
endangers further investments.
• Flexibility in generation and balance
requirements for the integration of renewable
energy are emerging as major issues.
• There are supply chain issues in biomass power
generation.
6. Energy efciency
• Limited technical capabilities, high initial capital
expenditure, limited market and policy issues
have adversely affected efforts to achieve
energy efciency.
63
• High transaction costs (which involves
appointing suitable consultants and vendors for
execution) relative to project size, especially in
the micro, small-scale and medium enterprises
(MSME) sector, makes energy efciency
investments unattractive for investors.
• The non-availability of sufcient credit facilities
and difculties in obtaining required nances
for energy saving projects are strong deterrents
to investments in energy efciency in India.
Way Forward
1. Overall energy
• Oil, natural gas, electricity and coal may be
brought under GST to enable input tax credit.
• Have the same GST rate for all forms of energy
to enable a level playing eld.
• All form of subsidies should be provided as
functional subsidies to end-consumers to
empower them to choose the energy form most
suitable and economical to them.
2. Power
• Promote smart grid and smart meters.
• All PPAs including those with state generation
companies (GENCOs) should be based on
competitive bidding.
• Introduce a capacity market to encourage
exible capacity for peak demand and
intermittency.
Figure 12.1: Strategies for improving the energy sector in India
ENERGY
EFFICIENCY
Overall
energy
Power
Oil & Gas Coal
Renewable
Energy
Energy
Efficiency
Strategy for
New India @ 75
64
• Privatizing state distribution utilities and/or the
use of a franchisee model will reduce AT&C
losses.
• Discoms may adopt a franchisee model for its
retail business in rural areas and stipulate a
minimum level of performance parameters,
including the use of decentralized generation
sources and storage systems for local reliability
and resilience.
• Regulatory bodies need to be further
strengthened and made truly independent.
• For agriculture, an upfront subsidy per acre
of land through Direct Benet Transfer (DBT)
may be considered instead of providing
separate subsidies for fertilizers, electricity, crop
insurance etc.
• Promote the use of solar pumps for agriculture.
Local discoms should buy surplus power from
the farmer.
• Discoms may be ned for load shedding.
• Ensure effective enforcement of a cap on cross-
subsidy and open access. It is also necessary to
remove high open access charges.
• Actively promote cross-border electricity trade
to utilize existing/upcoming generation assets.
• Introduce time-of-day tariff to promote the use
of renewable energy.
• Introduce performance-based incentives in the
tariff structure.
• To manage the demand for power, it is
necessary to introduce 100 per cent metering,
net metering, smart meters, and metering of
electricity supplied to agriculture.
3. Oil & gas
• Provide for a common carrier and open access
to gas pipelines.
• Separate the developmental and regulatory
functions of the PNGRB.
• Expedite establishing the National Gas Grid.
• Promote city gas distribution to provide piped
natural gas (PNG).
• Review and provide the required exibility in
contract terms to make stranded oil and gas
assets functional.
• Enhance production from the existing
elds of ONGC and OIL using cutting-edge
technology through a framework of production
enhancement contracts.
• Consider market pricing for blocks that are not
viable because of low gas pricing.
• Provide for shared infrastructure for evacuation
of oil and gas from small and scattered on-
shore and offshore elds.
• Provide “priority sector” status for 2G bio-
ethanol projects. The concept of ‘solar parks’
can be applied to bio-fuels; land can be leased
by the government to oil marketing companies
(OMCs) for energy crops.
• The government should provide viability gap
funding/nancial assistance for 2G ethanol
project developers/technology partners.
• Declare regasied liqueed natural gas (R-LNG)
as transportation fuel and promote PNG in rural
areas.
• Create strategic reserves through various policy
options.
4. Coal
• Expeditiously complete detailed exploration
through exploration-cum-mining leases based
on production/revenue sharing model.
• Put the onus on concerned state governments
to make the land required for mining available.
65
• Expeditiously operationalize commercial coal
mining.
5. Renewable energy
• Provide a mechanism for cost-effective power
grid balancing (gas-based, hydro or storage).
• Renewable purchase obligations (RPO) should
be strictly enforced and inter-state sale of
renewable energy should be facilitated.
• It is necessary to have national level markets
and regulations for balancing of power. Central
level agencies like Central Electricity Regulatory
Commission or National Load Despatch Centre
should socialize the costs of balancing inter-
state transmission systems (ISTS) connected
power plants, over the entire system, on the
lines of the point of connection (PoC) or a
similar mechanism.
• Decentralized renewable energy in rural areas
in conjunction with the discoms’ grid can offer
reliability.
• Hybrid renewable energy systems such as solar
PV + biomass should be explored.
• Commercial biogas needs to be promoted by
providing subsidy to consumers.
6. Energy efciency
• The Bureau of Energy Efciency (BEE) should
come out with a white paper on its 5-year
strategy on energy efciency in various sectors
and specify energy consumption norms.
• State designated agencies (SDAs) need to be
more empowered and provided with adequate
resources to implement EE related programmes.
There is a need to ensure greater participation
of energy service companies (ESCOs) using
appropriate nancing models with a risk sharing
mechanism, particularly by public sector banks.
• States should adopt the second version of the
Energy Conservation Building Code (ECBC)
in their building by-laws and ensure faster
implementation.
• Promote the mandatory use of LED and the
replacement of old appliances in government
buildings with ve-star appliances. Focus the
UJALA
(
Unnat Jyoti
by Affordable LEDs for All)
programme on lower-income households and
small commercial establishments. The number
of appliances covered under the Standards and
Labelling (S&L) programme should be increased.
• Widen and deepen the perform, achieve and
trade (PAT) programme; make Energy Saving
Certicate (ESCert) trading under the PAT
scheme effective by ensuring strict penalties
against defaulters.
• For the MSME sector, BEE should develop
cluster-specic programmes for energy
intensive industries to introduce energy efcient
technologies.
• The Forum of Regulators and State Electricity
Regulatory Commissions (SERCs) should provide
for lower heat rate requirements for new power
stations. Old and inefcient plants consuming
more than the threshold energy should be
retired in a phased manner.
• Promote the use of the public transport system.
Public transport systems may be converted to
electric in a time bound manner. Expand the
corporate average fuel efciency standards
(CAFE) beyond passenger cars to other vehicle
segments.
Strategy for
New India @ 75
66
Objectives
Increasing the coverage and quality of roads and
highways is critical to enhancing connectivity and
internal and external trade. By 2022-23, we should
achieve the following objectives:
• Increase connectivity by expanding the road
network:
o Achieve the
Bharatmala
Phase-I target
by completing 24,800 km by 2021-22,
including 2,000 km of coastal and port
connectivity roads.
1
o Complete Phase I of the
Pradhan Mantri
Gram Sadak Yojana
(PMGSY) with quality
monitoring at every stage.
o Double the length of national highways
(NHs) to 2 lakh km by 2022-23 from the
existing 1.22 lakh km.
o Widen single/intermediate lane (SL/IL)
NHs and reduce the length of SL/IL NHs
to less than 10 per cent of total length
by 2022-23 from the present 26.46 per
cent.
2
• Improve the regulatory framework for roads
to achieve better compliance, seamless
connectivity, road safety and quality.
• As a signatory to the Brasilia Declaration,
reduce the number of road accidents and
fatalities by 50 per cent by 2020.
3
13. Surface Transport
Figure 13.1: Total number of registered vehicles in India (millions)
58.9 Million
182.4 Million
0
20
40
60
80
100
120
140
160
180
200
2001-02 2012-13
Number of Registered Vehicles (Millions)
11% CAGR
Source: TERI, 2015-16
67
Current Situation
The road sector in India accounts for the largest
share in the movement of both passengers and
freight. Driven by a rapidly growing economy,
access to vehicle nance and improved road
connectivity, the demand for mobility on roads has
risen continuously, leading to a sharp rise in the
number of road transport vehicles. The total number
of registered vehicles in India increased from 58.9
million in 2001-02 to 182.4 million in 2012-13,
4
a
CAGR of almost 11 per cent during this period.
However, access to and quality of public
transportation need continuous improvement.
In urban areas, the increasing use of personal
vehicular transport leads to road congestion, longer
journey times and higher levels of air and noise
pollution. Expansion of the public transport eets
has been hampered by the short supply of vehicles
– the total demand for buses was approximately
3.40 lakh in FY 2017, while the availability/supply
was only about 1 lakh.
Constraints
1. Capacity of existing highways: The existing
length of the NH network is 1.22 lakh km,
which is 2.2 per cent of the country’s total road
network of 56.03 lakh km.
5
The existing NH
length with 4-lane and above NH standards
is 27,658 km (22.59 per cent), and that with
single/intermediate lane (SL/IL) width is 32,395
km (26.46 per cent); the remaining 62,379
km (50.95 per cent) is of 2-lane NH standard.
6
Further, national and state highways are already
overstrained, carrying more than 65 per cent of
the road trafc. National highways carry 40 per
cent of India’s total road trafc.
7
2. Maintenance of existing infrastructure: The
annual outlay earmarked for maintenance and
repair of national highway stretches
8
is only
about 40 per cent of the funds required. This is
one of the main reasons for the inability to take
up timely maintenance interventions.
3. Accidents and safety concerns: Road safety
is a major issue in the country with nearly 400
road related deaths being recorded daily. In
2013, India had an accident death rate of 18.9
for every 100,000 people, higher than other
South Asian countries such as Bangladesh
(11.6), Mauritius (12.2) and Sri Lanka (13.7).
9
At least a part of the fatalities is because of the
poor quality of roads.
4. Cost escalation for roads: Delays in acquiring
land can affect project costs as the average cost
of land has escalated from Rs. 0.80 crore per
hectare during 2012-13 to Rs. 3.20 crore per
hectare during 2017-18.
Way Forward
1. Increase connectivity by expanding the road
network
• Four projects to be undertaken:
o
Bharatmala Pariyojana
Phase-I: complete
24,800-km by 2021-22.
10
o Special Accelerated Road Development
Programme for the North-Eastern region
(SARDP-NE), Phase ‘A’: improve about
4,099 km in the North-East.
o ‘North-East Road Network Connectivity
Project Phase I’: improve infrastructure
in Meghalaya and Mizoram and enhance
connectivity with inter-state roads and
international borders.
11
o
Chardham Mahamarg Vikas Pariyojna.
• Improve the implementation capacity of states’/
UTs’ public work departments (PWDs) through
institutional strengthening and training.
Strategy for
New India @ 75
68
o A dedicated Metropolitan Urban Transport
Authority in each city with a population of
more than 1 million by 2022-23 is needed.
o Similarly, set up dedicated cells for integrated
planning, coordination and delivery of
transport services in smaller cities.
2. Improve road maintenance and safety
• Maintain NH assets by adopting a mainte-
nance management system (MMS). Earmark
funds from the Central Road Fund (CRF) for
maintenance activities. India should begin with
earmarking 10 per cent of its annual budget for
road and highways for maintenance to move to-
wards the developed country norm of earmark-
ing 40 per cent to 50 per cent of the budget for
roads and highways for maintenance.
• Build in heavy penalties on contractors for poor
quality of operations and maintenance (O&M)
into contracts across all contract modes.
• Eliminate 789 black spots identied by the
Ministry of Road Transport and Highways
(MORTH) by March 2020 by constructing
permanent structures such as yovers/vehicular
underpasses (VUPs) and pedestrian underpasses
(PUPs). Of these spots, 136 are on state roads
and need to be dealt with by state governments.
• The Motor Vehicles (Amendment) Bill, 2016,
pending before the
Rajya Sabha
, must be
passed without delay. Constitute a National
Safety Board to enforce road safety rules.
3. Streamline land acquisition
• Ensure that MORTH’s
Bhoomi Rashi
web
portal, which is integrated with the Ministry of
Finance’s Public Financial Management System
(PFMS), is fully functional by March 2019.
• Sensitize stakeholders to iron out details of
land acquisitions like determining market
value, deciding a compensation amount, dis-
bursement of compensation, etc., as detailed
in the 2017 guidelines issued by MORTH,
which covered various aspects of the Right to
Fair Compensation and Transparency in Land
Acquisition, Rehabilitation & Resettlement
(RFCTLARR) Act, 2013, and The National High-
ways Act, 1956.
4. Skill development
• Introduce vocational training courses on road
construction in Industrial Training Institutes (ITIs).
• Collaborate with original equipment
manufacturers and other stakeholders to set
up driving training centres (DTCs) to train
commercial vehicle drivers.
• Ensure stringent testing of driving skills
before granting driving licences by adopting
technologically advanced methods such as the
automated driving testing system.
• MORTH has targeted training more than one
lakh workers employed in various projects by
June 2018 and a further 2.5 lakh workers by
2019 under its programme.
5. Increase emphasis on research and
development
• Earmark 0.1 per cent of MORTH’s annual
budget for R&D.
• Establish a transport data centre at the national
level for applied research on roads.
• Enhance R&D on IT-enabled trafc management
systems.
• Develop new materials/techniques for
construction.
• Periodically revise codes/standards/guidelines
related to technology use in line with the latest
technological developments in the highways
sector and disseminate codal provisions.
69
6. Increase the capacity and reach of public
transport
• Transform state road transport undertakings
(SRTUs) and promote public transport, rural
transport and last mile connectivity.
• Additional funding for public transportation
and the creation of interoperable systems will
help expand the reach and capacity of public
transport.
• The central government will work with states to
develop bus ports and provide support on tech-
nologies/software such as
VAHAN
(for vehicle
registration) and
Saarthi
(for driving licences).
7. Expand the reach of the electronic toll
collection (ETC) system
• Complete the setup of ‘FASTag’, which employs
radio-frequency identication, for ETC in all
lanes for the 418 toll plazas with the National
Highway Authority of India (NHAI) by March 31,
2019. ETC should be interoperable across toll
plazas on all national and state highways.
• Streamline the ‘FASTag’ charging system.
• Engage with stakeholders and concessionaires
(for PPP toll plazas) to ensure that all toll plazas
have the requisite infrastructure for ETC.
8. Complete targets for rural connectivity
• Phase-I of PMGSY should be completed by
March 2019. The total length under the LWE
(Left Wing Extremism) programme of 5400 km
must be completed by March 2020.
• Beyond 2020, we should focus on building last
mile connectivity.
9. Increase technology adoption and seamless
movement between different modes of
transport
• Urban mobility must move towards multimodal
solutions by ensuring seamless movement
between different modes.
• Identify and develop multimodal logistics
parks (MMLP) to ensure seamless movement of
freight.
• Encourage the road freight industry to adopt
innovative technologies through incentives.
________________________________________
1
Ministry of Road Transport and Highways, Press Information Bureau. Accessed April 24, 2018.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=17193
2
Ibid.
3
http://pib.nic.in/newsite/PrintRelease.aspx?relid=142444. Accessed April 25, 2018.
4
TERI Energy & Environment Data Diary and Yearbook (TEDDY) 2015-16.
5
Ministry of Road Transport and Highways.
6
Ibid.
7
Ibid.
8
These include national highway stretches not covered under any programme or of completed stretches where no liability devolves on
the contractor to maintain these.
9
World Health Organization “Global Status Report on Road Safety 2015”.
10
Ministry of Road Transport and Highways, Press Information Bureau Archive. Accessed May 11, 2018.
http://pibarchive.nic.in/ndagov/Comprehensive-Materials/compr5.pdf.
11
Ibid.
Strategy for
New India @ 75
70
Objectives
By 2022-23, India should have a rail network that
is not only efcient, reliable and safe, but is also
cost-effective and accessible, both with respect to
the movement of people and goods. This requires
achieving the following objectives:
• Augment the capacity of existing railway
infrastructure.
• Increase the speed of infrastructure creation
from the present 7 km/day to 19 km/day by
2022-23.
1
• Achieve “100 per cent”
2
electrication of broad
gauge track by 2022-23 from the 40 per cent
level in 2016-17.
• Increase the average speed of freight and mail/
express trains to 50 km/hr (from about 24 km/hr
in 2016-17) and 80 km/hr (from about 60 km/
hr), respectively.
3
• Improve the safety of the railways, achieving
zero fatalities from the 2016-17 level of 238
fatalities and reducing the number of accidents
from the 73 recorded in 2017-18.
4
• Enhance service delivery, achieving 95 per cent
on-time arrivals by 2022-23.
5
• By 2022-23, the railways should have a freight
load of 1.9 billion tonnes and an improved
modal share of 40 per cent of freight movement
from the current level of 33 per cent.
6
• Increase the share of non-fare revenues in total
revenue to 20 per cent.
Current Situation
The Indian Railways (IR) is the fourth largest
network in the world in terms of route km (67,368
km in FY17).
7
It is also the largest passenger
(1,150 billion-passenger km in FY17)
8
and fourth
largest freight (620 billion net-tonne km in FY17)
9
transporting railway system globally. In FY17,
13,329
10
passenger trains carried over 22.24
million
11
passengers daily, i.e., almost equivalent
to Australia’s population, while the freight
transported was 1.1 billion tonnes.
12
During FY07-
FY17, railways’ revenue increased at a CAGR of
5.7 per cent to USD 25.1 billion
13
in FY17, led by
strong demand, increasing urbanization and rising
incomes.
Despite its extensive reach and the substantial
growth in freight load, the modal share of railways
in the transportation of surface freight has declined
from 86.2 per cent in 1950-51
14
to 33 per cent in
2015, in part due to a shortfall in carrying capacity
and lack of price competitiveness. IR’s golden
quadrilateral and its diagonals make up only 15
per cent of the total route of the railways but it
transports 52 per cent of passenger trafc and
58 per cent of total freight load.
15
This highlights
the high saturation and over-utilized capacity on
popular routes. Since passenger and freight trafc
move on the same tracks in India, we have not been
able to increase speed or capacity in a signicant
manner relative to global benchmarks.
14. Railways
71
Figure 14.1: Growth of Indian Railways, 1950-51 to 2013-14
Source: ‘Indian Railways: Lifeline of the nation (A White Paper)’ February 2015
A: Route Km Increase Over Time B: Passenger Km Increase Over Time
The expenditure on the railways as a percentage
of transport expenditure declined from 56 per
cent in 1985-90 (7th plan) to 30 per cent in 2007-
12 (11th plan).
16
Despite its contribution to the
overall economy, under-investment in the sector
has crippled operations and hampered capacity
augmentation. From 1950-51 to 2013-14, the
route km increased by only 23 per cent against the
growth in freight and passenger km of 1,344 per
cent and 1,642 per cent respectively.
17
The government has recognized the need for
additional investment in rail infrastructure and
scaled up investment by almost three times, from
INR 53,989 crore in 2013-14 to INR 1.47 lakh
crore
18
in 2018-19 (BE).
Constraints
1. Congested networks: Over-stretched
infrastructure with 60 per cent plus routes being
more than 100 per cent utilized, leading to a
reduction in average speed of passenger and
freight trains.
2. Organizational structure: Delays in decision-
making, inadequate market orientation
and long project approval durations lead
to slow turnover times and delays in the
implementation of railways projects.
3. Internal generation of resources: Negligible
non-fare revenues and high freight tariffs have
led to a sub-optimal freight share. The lower
relative cost of transporting freight by road has
led to a decline in the share of the railways.
Low and static prices for the passenger segment
have also contributed to low internal generation
of resources.
4. Safety and poor quality of service
delivery: There have been a number of
accidents and safety issues in the IR in recent
years. Poor cleanliness of trains and stations,
delays in train departures/arrivals, quality of
53,596
65,806
Route km
1950-51
2013-14
23%
66,517
11,58,742
Passenger km (million)
1950-51
2013-14
1642%
Strategy for
New India @ 75
72
food and difficulties in booking tickets are
key issues.
5. Efciency of terminals: Poor terminal facilities
lengthen loading and unloading times. Eighty
per cent of railway loads come from terminals.
The functioning of terminals needs to be
strengthened to improve rail freight.
6. Economies of scale: The lack of scale
economies especially impact management
quality and system accountability.
Way Forward
1. Better utilization of existing infrastructure to
address congestion:
• Prioritize ongoing projects to improve capacity
utilization. Timely completion of these projects
will generate more revenue. At the same time,
we need to maintain and upgrade the existing
network to ensure that supply keeps up with
demand.
• Ensure that the dedicated freight corridors
(DFCs) and the Mumbai-Ahmedabad High
Speed Rail (MAHSR) are completed on
schedule, particularly by timely completion
of land acquisition for DFCs. DFCs should
be fully commissioned by FY20; feeder
routes to the DFCs should be developed
simultaneously.
2. Ease organizational rigidity through
structural reforms:
• Consider opening up the ownership and
operations of freight terminals and ownership
of locomotives and rolling stock to the private
sector under a transparent, neutral (non-
railway) and fair regulatory mechanism. This
will improve performance and attract private
players and investments.
• Consider transferring coach and locomotive
manufacturing and repairs to private players.
However, since human safety is involved in the
case of coaches and wagons, IR should continue
to have regulatory and technical control over their
manufacture and maintenance to ensure the safety
of users in compliance with the General Rules of IR.
• Separate suburban passenger transport from
the rest of the network and put a light rail
network in place in all major urban areas under
local governments.
3. Rationalize fare structures and subsidies,
and monetize assets to generate revenues:
• Revisit IR’s pricing model to make the
passenger and freight segments sustainable.
Freight tariffs should be competitive with the
cost of road transportation.
• Expedite the process of establishing the
Rail Development Authority (RDA), already
approved by the government
19
. DA must advise/
make informed decisions on an integrated,
transparent and dynamic pricing mechanism
to determine rail fares and rebalance the
passenger and freight categories to improve
efciency and rebalance the modal mix of
goods transport.
• Monetize land resources with the railways,
particularly through developing non-railway
revenues such as through retail or other activities.
• Increase retail revenues from railway stations by
investing in facilities, modernizing stations and
contracting space to private players.
4. Enhance safety of trains to reduce accidents
and modernize stations:
• The government has created the
Rashtriya Rail
Sanraksha Kosh
(RRSK) in 2017-18 to address
critical safety related issues.
73
• Eliminate level crossings and cattle crossings
and fence railway tracks in areas with high
levels of activity to prevent accidents.
• Increase the use of proven, advanced technol-
ogies such as automatic train protection, fog
safety devices, end of train telemetry devices and
on-board/online condition monitoring systems.
• Implement the 22 recommendations of the
High-Level Safety Review Committee chaired by
Dr. Kakodkar.
20
• Upgrade and ensure the smooth functioning of
by-pass crossings and grade separations.
• Redevelop 100 out of 400 identied railway
stations by 2022.
• Award station-cleaning contracts to private
vendors and sharply increase the number of
bio-toilets by 2019.
5. Enhance the ease of doing business:
• Set up an independent homologation and
standardization agency to adopt new railway
technology and improve the speed and
reliability of the railway network.
• Switch to common transport documents with
(i) an internationally accepted liability regime
for domestic and international transportation
and (ii) common carrier status to all rail-based
service providers.
• To enhance credibility, ensure that there are no
interim changes in tariff and non-tariff rules.
• Use technology to schedule and route freight busi-
ness to improve asset productivity and utilization.
• Complete by 2022-23 the commissioning of the
remaining 55 of the 100 new freight terminals
announced in the Rail Budget of 2016-17 under
‘Mission Hundred’.
21
• Improve terminal efciency by promoting the
concept of ‘engine-on-load’ system, developing
proper terminal layouts, adopting efcient
operational practices, operating trains end-
to-end, and using proper handling methods/
systems for loading and unloading operations.
22
6. Set up an independent regulator for the
Indian Railways:
• The government has already approved the
formation of the RDA, an independent regulator
for IR in February, 2018. The regulator’s
functions will include the following:
23
o Take decisions regarding price regulation
and enhancement of non-fare revenue.
o Protect consumer interests, promote
competition, efciency and economy and
ensure a fair deal to stakeholders and
customers.
o Help attract investment, promote efcient
resource allocation, benchmark service
standards and enforce standards.
o Put in place measures to absorb new
technologies and develop human
resources.
o Provide a framework for non-discriminatory
open access to the dedicated freight.
corridors
________________________________________
1
Indian Railways, July 2017. “Reform, Perform and Transform.”
http://www.indianrailways.gov.in/Reform-Perform-Transform%202022_v10%20(2).pdf. Accessed April 30, 2018.
2
Budget Speech 2018-19.
Strategy for
New India @ 75
74
3
Rail Budget Speech 2016-17.
https://www.thehindubusinessline.com/opinion/a-multitrack-approach-to-railway-reform/article9937255.ece. Accessed April 30,
2018.
4
http://indianexpress.com/article/india/only-73-accidents-in-2017-18-rst-time-in-35-years-fewer-than-100-railway-acci-
dents-5119024/. Accessed April 25, 2018.
5
India: Three-year Action Agenda 2017-18 to 2019-20 by NITI Aayog http://niti.gov.in/writereaddata/les/coop/India_ActionAgenda.
pdf. Accessed April 25, 2018.
6
http://www.indianrailways.gov.in/Reform-Perform-Transform%202022_v10%20(2).pdf. Accessed April 26, 2018.
7
Ibid.
8
Ibid.
9
Indian Railways http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/MTHSTAT/2017/Freight_March_2017.
pdf. Accessed April 26, 2018.
10
Ministry of Railways.
11
Ibid.
12
Report on Railways by IBEF, September 2017 https://www.ibef.org/download/Railways-September-2017.pdf. Accessed April 27,
2018.
13
Ibid.
14
India: Three Year Action Agenda 2017-18 to 2019-20 by NITI Aayog http://niti.gov.in/writereaddata/les/coop/India_ActionAgenda.
pdf. Accessed April 28, 2018.
15
http://pib.nic.in/PressReleseDetail.aspx?PRID=1514320. Accessed April 28, 2018.
16
‘Indian Railways: Lifeline of the nation (A White Paper)’ February 2015 http://www.indianrailways.gov.in/railwayboard/uploads/direc-
torate/nance_budget/Budget_2015-16/White_Paper-_English.pdf. Accessed April 30, 2018.
17
‘Indian Railways: Lifeline of the nation (A White Paper)’ February 2015 http://www.indianrailways.gov.in/railwayboard/uploads/direc-
torate/nance_budget/Budget_2015-16/White_Paper-_English.pdf. Accessed April 30, 2018.
18
Ministry of Railways.
19
http://pib.nic.in/newsite/PrintRelease.aspx?relid=176324. Accessed April 28, 2018.
20
http://pib.nic.in/newsite/PrintRelease.aspx?relid=175038. Accessed April 29, 2018.
21
Ibid.
22
‘Terminals on Indian Railways’ by S. B. Ghosh Dastidar, The Asian Journal (2009), http://www.aitd.net.in/pdf/AsianJournals/24%20
-%20Rail%20Terminal%20Facilities.pdf. Accessed April 30, 2018.
23
http://pib.nic.in/newsite/PrintRelease.aspx?relid=176324. Accessed May 10, 2018.
75
Objectives
• Enhance the affordability of ying to enable an
increase in domestic ticket sales from 103.75
million in 2016-17
1
to 300 million by 2022.
2
• Double air cargo handled from about 3.3 million
tonnes in 2017-18 to about 6.5 million tonnes.
• Expand the maintenance, repair and overhaul
(MRO) industry from USD 1.8 billion in 2017 to
USD 2.3 billion.
• Expand airport capacity more than ve times to
handle one billion trips a year.
• Enhance availability and affordability of
regional air connectivity and revive/upgrade 56
unserved airports and 31 unserved helipads
through the Regional Connectivity Scheme –
Ude Desh Ka Aam Naagrik
(RCS-UDAN).
• Ensure that airport tariffs, taxes on fuel, landing
charges, passenger services, cargo and other
charges are determined in an efcient, fair and
transparent manner.
Current Situation
The civil aviation sector contributed USD8.9 billion
to India’s GDP in 2014 and supported 1.31 million
direct, indirect and induced aviation jobs.
3
In 2016,
the demand for domestic air travel was twice that in
China.
4
India’s domestic air trafc made up 69 per
cent of total airline trafc in South Asia.
5
The World
Economic Forum’s Global Competitiveness Report,
15. Civil Aviation
Figure 15.1: Passenger trafc by scheduled carriers, 2007-08 to 2016-17
71.6
68.4
77.4
88.9
98.9
97.9
103.7
115.8
134.9
158.4
0
20
40
60
80
100
120
140
160
180
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Number of Passengers (Million)
International Passengers Domestic Passengers Total Passengers
Source: Hand Book on Civil Aviation Statistics 2016-17
Strategy for
New India @ 75
76
2018 ranks India as 53rd out of 140 countries
worldwide in air transport infrastructure.
The Airport Authority of India (AAI) aims to bring
around 250 airports under operation across the
country by 2020.
6
The Ministry of Civil Aviation’s
regional connectivity scheme, UDAN, is a 10-year
scheme, which will promote balanced regional
growth and make ying affordable for the
population. It will help enhance connectivity to the
country’s unserved and underserved airports.
India’s civil aviation sector has been growing
steadily; the number of passengers was 158 million
in 2016-17.
7
Domestic passenger trafc increased
at a CAGR of almost 10 per cent between 2007-
08 and 2016-17 and international passenger
trafc grew at a CAGR of 8.07 per cent during the
same period.
8
Between 2014-15 and 2016-17 in
particular, trafc growth in the domestic passenger
segment was 48 per cent and 20 per cent in the
international segment.
9
India is also catching up
with other leading aviation markets in terms of
market penetration.
There has been an increase in air cargo, both
domestically and internationally, in 2016-17. IATA
has forecast that India will cross over into the top
10 air freight markets in 2018-19.
Constraints
• Capacity and infrastructure: Due to the
rapid expansion of India’s civil aviation sector,
airspace, parking bays and runway slots will
become increasingly scarce over the next few
years, especially at metro airports. Mumbai and
Chennai airports are already close to saturation.
Capacity and infrastructure constraints could
decrease efciency and safety and have
Figure 15.2: Freight transported by air, 2007-08 to 2016-17
0.57
0.55
0.69
0.86
0.81
0.78
0.84
0.99
1.05
1.12
1.15 1.15
1.27
1.50
1.49
1.41
1.44
1.54
1.66
1.86
1.71
1.70
1.96
2.36
2.30
2.19
2.28
2.53
2.70
2.98
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Frieght Transported by Air (Million MT)
Domestic International Total
Source: Ministry of Civil Aviation
77
negative economic effects. Inadequate hangar
space and unavailability of land to expand
airports at their current sites, particularly in
major cities, are two of the major constraints
that face the sector. While this may be less
binding in metro cities where the number of
passengers is large enough to support more
than one airport, building more than one airport
is not feasible in non-metro cities because of
low passenger volume.
• Skilled workers: According to a study
conducted by the Ministry of Civil Aviation,
Indian aviation could directly support 1.0 to 1.2
million jobs by 2035. This implies that about
0.25 million persons will need to be skilled over
the next 10 years.
o Shortage and gaps in availability of indus-
try-recognised skills – from airline pilots
and crew to maintenance and ground
handling personnel – could constrain the
growth of different segments of the sector.
o Aviation Gasoline (AvGas) is used as fuel
by almost all training aircraft. This fuel is
imported, its supply is not assured and it
attracts a tax of 18 per cent (earlier 28 per
cent) under GST. Coupled with a shortage
of instructors, this makes ying training an
expensive and time-consuming exercise.
• High cost to passengers and of air cargo:
o Tariff determination: The Ministry of
Civil Aviation has mandated that all
airports move from a single to a hybrid till
structure. Although this is benecial as it
incentivizes infrastructure investment, it
raises costs for airlines and passengers.
o Taxes on aviation turbine fuel (ATF):
Due to high taxes and lack of competition
among providers, ATF is relatively
expensive in India. Since it remains outside
the GST network, there are also regional
disparities in its price. The price of aviation
fuel in India may be up to 60 per cent per
cent higher than prices in ASEAN and the
Middle East countries because of high
central and state taxes.
10
Fuel cost as a
percentage of operating charges amounts
to 45 per cent
11
in India as compared to
the global average of 30 per cent.
o Incidence of GST on Aircraft Leases and
Spare Parts: GST of 5 per cent is applied on
aircraft lease rentals; GST ranges between
5 per cent and 28 per cent on aircraft
engines and spare parts. This also raises
costs for the sector.
• Aviation safety: Although, the number of
aviation safety violations in 2017 (337) has
declined in comparison to 2016 (442), the
absolute number still remains high.
Way Forward
1. Enhance aviation infrastructure
• Complete the planned airports under the UDAN
initiative in a time-bound manner. Revival of 50
un-served and under-served airports/airstrips
should be completed.
• In addition to completing two new airports for
Delhi and Mumbai by 2022, the infrastructure
capacity in the 10 biggest airports (in terms of
trafc) should be signicantly augmented.
• Include provisions for domestic hub
development while auctioning trafc rights.
2. Increase investment in the sector through
nancial and infrastructure support
• Reduce taxes on MRO services and consider
granting infrastructure status for MRO.
Strategy for
New India @ 75
78
• Increase aircraft parking infrastructure and
facilities at metro airports.
• Create additional parking hubs at suitable
locations, accessible through short haul ights,
to accommodate additional aircraft.
• Monetize vacant real estate near AAI airports
in all major centres of trafc to increase non-
aeronautical revenues.
3. Address shortage of skilled manpower
• Promote collaboration between original
equipment manufacturers (OEMs), industry
and educational institutes to teach the latest
concepts in the aviation industry including
management principles, IT in aviation, etc.
• Formulate long-term plans for advanced
research in aviation technologies to create a
manufacturing ecosystem in the country.
• Expedite commencement of courses by
the National Aviation University after due
consultation with stakeholders.
• Facilitate greater involvement of the private
sector in sponsoring aviation institutions,
industrial training and R&D projects.
• A further reduction in GST rates on Avgas will
allow ying training organizations to make
training more affordable.
4. Promote air cargo growth
• Promote “Fly-from-India” through the creation
of transhipment hubs. The transhipment hub in
Delhi is scheduled to be launched in May 2018
followed by the launch of those in Chennai and
Mumbai.
• Develop an integrated digital supply chain or
e-cargo gateway based on the National Air
Cargo Community System (NACCS) platform.
The modular development may include the
following digital business enablers as plug-ins:
• e-contracting/booking of cargo – with access to
nancial payment gateways.
• e-transportation multimodality (road-air rst/last
mile connectivity).
• e-compliances (initially online clearances by six
participating governmental agencies; rest to
follow).
• Cargo Sewa – a grievance redressal module
linked to Air Sewa.
5. Ease the regulatory environment for airports
• Deregulate further and open up the aviation
market to help increase passenger and freight
trafc in India.
• Adopt a consistent model for tariff
determination so that it reduces passenger cost.
• Align taxation and pricing structure to global
benchmarks by considering bringing aviation
turbine fuel (ATF) under the rubric of GST.
• Amend the AAI Act to allow commercial usage
of land with airports by liberalising end-use
restrictions for existing and future airports.
• Strengthen regulatory capacity with respect
to public private partnerships and streamline
the judicial review process to ensure timely
implementation of DGCA’s decisions.
• Ensure that the DGCA acts as a truly
independent regulator, with the Ministry of Civil
Aviation focusing on policies.
• Meet the regulatory and security
requirements prescribed by the International
Civil Aviation Organization (ICAO) at all
times. Additional skilling of personnel may
be required for this and the DGCA should
79
adequately build the capabilities of its staff to
ensure compliance.
6. Prioritize aviation safety
12
• Shift focus to pre-empting and preventing
accidents/incidents.
• There should be zero tolerance of safety
violations.
• DGCA should be given autonomy for an
effective aviation safety oversight system.
It should also be authorized to impose nes
and penalties depending upon the nature of
violations.
• DGCA should continue ensuring real time safety
tracking and prompt incident reporting.
• DGCA should create a single-window system
for all aviation related transactions, queries and
complaints.
________________________________________
1
Hand Book on Civil Aviation Statistics 2016-17’ http://dgca.nic.in/pub/Handbook_2016-17.pdf. Accessed April 25, 2018.
2
National Civil Aviation Policy 2016
http://www.civilaviation.gov.in/sites/default/les/Final_NCAP_2016_15-06-2016-2_1.pdf. Accessed April 25, 2018.
3
IATA and Oxford Economics, “The Importance of Air Travel to India”.
http://www.iata.org/publications/economics/Reports/voa-country-reports/2016/ap-india-2017.pdf. Accessed April 25, 2018.
4
Invest India, Aviation Sector Overview https://www.investindia.gov.in/sector/aviation. Accessed April 25, 2018.
5
Ibid.
6
https://www.ibef.org/download/Aviation_Report_Feb_20183.pdf. Accessed April 26, 2018.
7
‘Hand Book on Civil Aviation Statistics 2016-17’ http://dgca.nic.in/pub/Handbook_2016-17.pdf. Accessed April 26, 2018.
8
Ibid.
9
Ibid.
10
“Aviation Sector: Status Check and Roadmap.” Accessed April 27, 2018.
http://www.advayalegal.com/articles/article-october,-2014-(edition-of-infrastructure-today-magazine).pdf.
11
Hindu Business Line, April 14, 2014. “Indian Aviation grounded by High Taxes.” Accessed April 27, 2018.
https://www.thehindubusinessline.com/economy/India-aviation-grounded-by-high-taxes-IATA-chief/article20727740.ece.
12
National Civil Aviation Policy, 2016. Ministry of Civil Aviation. Accessed April 27, 2018.
http://www.civilaviation.gov.in/sites/default/les/Final_NCAP_2016_15-06-2016-2_1.pdf.
Strategy for
New India @ 75
80
Objectives
• Double the share of freight transported by
coastal shipping and inland waterways from 6
per cent in 2016-17
1
to 12 per cent by 2025.
• Increase the port handling capacity to 2,500
million metric tonnes (MMT)
2
by 2022-23.
• Reduce the turnaround time at major ports from
about 3.44 days (2016-17)
3
to 1-2 days (global
average) by 2022-23.
• Increase the throughput of inland waterways
from 55.20 MMT in 2016-17 to 60-70 MMT by
2022-23.
• Augment the capacity of inland water transport
by increasing the least available depth.
Current Situation
1. Ports and shipping
India has a coastline spanning about 7,500 km,
forming one of the biggest peninsulas in the world.
Around 90 per cent of India’s external trade by
volume and 70 per cent by value are handled by
ports.
4
Twelve major ports and 205 non-major ports
operate on India’s coast. Yet, roads and railways
continue to be the dominant mode for cargo
movement. Despite being the most cost-effective
(Figure 16.1) and efcient mode, water transport
accounted for 6 per cent of freight transport in India
in 2016-17.
The total cargo handling capacity at major and non-
major ports stands at 2161.85 MMT
5
as on March
3l, 2017. Total capacity utilization across all ports
was 52.44 per cent. During 2016-17, the total cargo
throughput through major and non-major ports was
1133.69 MMT.
The Ministry of Shipping’s
Sagarmala
programme
focuses on modernizing and developing ports,
enhancing port connectivity, supporting coastal
communities and stimulating port-linked
industrialization (Figure 16.2).
Sagarmala
aims
to reduce the logistics costs for foreign and
domestic trade, leading to an overall cost savings
of INR 35,000 to INR 40,000 crore annually by
2025. It also aims to double the share of water
transportation in the modal mix.
The government has set up the
Sagarmala
Development Company Limited (SDCL) to provide
funding support to special purpose vehicles (SPVs)
set up to implement projects and the Indian Port
Rail Corporation Limited (IPRCL) to undertake port-
rail connectivity projects under
Sagarmala
.
2. Inland waterways
Inland Water Transport (IWT) carries less than 2
per cent of India’s organized freight trafc and
negligible passenger trafc. The annual freight
volumes carried on inland waterways using
National Waterways (NW-1, NW-2, and NW-3)
and Goa Waterways was 21.91 MMT in 2016-
17. Additionally, Maharashtra Waterways alone
transported more than 33.29 MMT.
16. Ports, Shipping and Inland
Waterways
81
3
1.5
0.3
0.15
0
0.5
1
1.5
2
2.5
3
3.5
Road Rail Waterways Pipelines
Rs./Tonne Km
Figure 16.1: Operating cost comparison in transporting cargo through
various modes
Source: Sagarmala National Perspective Plan, 2016
2. Inland Waterways
Inland Water Transport (IWT) carries less than 2 per cent of India's organized freight traffic and negligible
passenger traffic. The annual freight volumes carried on inland waterways using National Waterways
(NW-1, NW-2, and NW-3) and Goa Waterways was 21.91 MMT in 2016-17. Additionally, Maharashtra
Waterways alone transported more than 33.29 MMT.
The Inland Waterways Authority of India (IWAI) is mandated to develop and maintain infrastructure for
fairway, navigational aids and terminals. The IWAI also provides an enabling environment for private
investment in cargo vessels and operational services. Until 2015, there were only five NWs in the country.
In April20l6, 106 more waterways spread over 24 states were declared as NWs. The ministry is
augmenting the capacity of NW-l under the Jal Marg Vikas project. The project will enable the movement
of larger vessels of 1,500-2,000 tonnes on inland waterways. The government is also proposing to fund
NWs through the Central Road Fund (CRF). The Ministry of Finance has amended the Central Road Fund
Act, 2000, as part of the Finance Bill 2018 to include a list of projects and infrastructure sub-sectors,
including inland waterways, for which the CRF could be used. The CRF has since been renamed the
Central Road and Infrastructure Fund.
CONSTRAINTS
1. Unfavourable Modal Mix: Roads (54 per cent) continue to be the dominant mode of transporting
cargo, followed by rail (33 per cent). Transportation of cargo through waterways – shipping and inland
water – accounts for a minuscule modal share (6 per cent) despite it being the most cost-effective and
efficient mode.
2. Inadequate draught levels: Most Indian container handling ports lack the capability to handle large
container vessels due to inadequate depth; a minimum draft depth of 18 metres is needed to enable
mother vessels to dock at ports. With international trade leaning towards the more economically viable
mother vessels, shallow draft adversely affects a port’s potential to become a hub port.
3. Lack of adequate connectivity to ports: Weak hinterland connectivity between production centres
and gateway ports often leads to higher costs and delays because of sub-optimal mode choices.
Port Modernization
• Capacity
augmentation
• New ports
• Efficiency
improvement
Port Connectivity
• New road/rail
connectivity
• Up-gradation of
roads/railway
• Coastal shipping
• Inland water
transport
• Logistics parks
Port-led
Industrialization
• Industrial clusters
• Coastal Economic
Zones
• Maritime clusters
Coastal
Community
Development
• Skill develoment
• Coastal tourism
projects
• Devlopment of
fishing harbours, fish
processing centres
Figure 16.2: Pillars of the
Sagarmala
programme
Port-led Development
Source: Ministry of Shipping
Strategy for
New India @ 75
82
The Inland Waterways Authority of India (IWAI) is
mandated to develop and maintain infrastructure
for fairway, navigational aids and terminals. The
IWAI also provides an enabling environment for
private investment in cargo vessels and operational
services. Until 2015, there were only ve NWs in
the country. In April 2016, 106 more waterways
spread over 24 states were declared as NWs. The
ministry is augmenting the capacity of NW-l under
the
Jal Marg Vikas
project. The project will enable
the movement of larger vessels of 1,500-2,000
tonnes on inland waterways. The government is
also proposing to fund NWs through the Central
Road Fund (CRF). The Ministry of Finance has
amended the Central Road Fund Act, 2000, as part
of the Finance Bill 2018 to include a list of projects
and infrastructure sub-sectors, including inland
waterways, for which the CRF could be used. The
CRF has since been renamed the Central Road and
Infrastructure Fund.
Constraints
1. Modal mix: Roads (54 per cent) continue to
be the dominant mode of transporting cargo,
followed by rail (33 per cent). Transportation of
cargo through waterways – shipping and inland
water – accounts for a minuscule modal share
(6 per cent) despite it being the most cost-
effective and efcient mode.
2. Draught levels: Most Indian container
handling ports lack the capability to handle
large container vessels due to inadequate
depth; a minimum draft depth of 18 metres
is needed to enable mother vessels to dock
at ports. With international trade leaning
towards the more economically viable mother
vessels, shallow draft adversely affects a port’s
potential to become a hub port.
3. Connectivity to ports: Weak hinterland
connectivity between production centres and
gateway ports often leads to higher costs and
delays because of sub-optimal mode choices.
4. Transhipment port: A large percentage of
containers in India are currently transhipped
through other ports, such as Colombo (just
south of India), Singapore (East), Dubai
and Salalah (West) due to the absence of a
transhipment port in the country. This has led
to additional costs and delays due to the feeder
voyage from India to the hub port.
5. Charges by the shipping lines: The business
practices of shipping lines have played a key
role in the present negative perception of sea
transport. A long pending concern has been the
high rate and multiplicity of charges imposed by
shipping lines.
6. Capital for inland vessels: At present, the cost
of capital is very high and makes IWT freight
uncompetitive. It is difcult to attract capital
for building inland vessels as it is a signicant
investment.
7. Technical issues in inland waterways:
The varying and limited depths due to the
meandering and braiding of alluvial rivers and
the erosion of their banks causing excessive
siltation, lack of cargo earmarked for IWT,
non-mechanized navigation lock systems and
insufcient unloading facility at terminals hinder
the use of IWT by shippers.
8. Regulatory issues for inland waterways:
States’ Ferries Acts from various years
govern cross ferry movement and this may
present a barrier to inland navigation, as the
regulations may not take into account safety
considerations.
83
Way Forward
1. Open up India’s dredging market
• The government needs to open up the
dredging market to attract more players,
particularly international players, in dredging
activities to increase and maintain draft depth
at ports to attract large vessels and enable
them to become hub ports. At present, the
Dredging Corporation of India (DCI) and
a limited set of private vendors serve the
Indian dredging market, limiting competition.
Foreign players will be attracted to the market
if the government takes measures such as
consolidating dredging contracts across cohorts
of ports and withdrawing, at least temporarily,
the right to rst refusal given to Indian vendors.
• To enable major ports to handle larger vessels,
an action plan to increase the draft depth of
ports has been prepared. Most major ports have
already achieved a draft of 14 metres or more
except Kolkata Port, where deeper draft has
not been feasible because of the riverine nature
of the port. Some major ports are striving to
achieve deeper drafts up to18 metres. The outer
harbour in Visakhapatnam has very deep draft
of more than 18 metres. Work is in progress
to create a draft of more than 18 metres in
Mormugao and Kamarajar Port.
2. Expedite the implementation of
Sagarmala
• Expedite the completion of various projects under
Sagarmala
, especially those aimed at improving
port connectivity, setting up coastal economic
zones (CEZs) and establishing new ports.
• The setting up of a single window facility
for cargo clearance and putting in place fully
mechanized cargo handling infrastructure will
be critical to increase throughput.
3. Ease the business environment around
shipping and ports
• The Government of India needs to take a fresh
look at its policy of imports on a ‘’Free on
Board” basis (FoB policy) as it needs to balance
risk between the importer and exporter.
• Enhance technology use in ports and, wherever
feasible, draw lessons from successful global
ports such as Rotterdam, Felixstowe and
Singapore to improve efciency.
4. Transhipment ports and shipping lines
• Transhipment via Cochin ICCT (already
commissioned), the upcoming Vizhinjam Port
and the Enayam Port at Colachel will create a
transhipment cluster similar to the clusters in
Malaysian and Singaporean ports. The cluster
should be completed within the targeted
timelines and a business plan should be drawn
up to make it a success.
• The new Merchant Shipping Bill to replace the
Merchant Shipping Act, 1958, needs to be enacted
at the earliest to promote the ease of doing
business, transparency and effective delivery of
services. Opening up of the sector will improve the
availability of ships and help reduce costs.
5. Enhance last mile connectivity to inland
waterways
• IWT should be integrated to multimodal/
intermodal connectivity. Inland terminals
with proper road and/or rail connectivity and
seamless transfer of goods from one mode to
the other are important for an efcient logistics
supply chain.
• Procure oating terminals and cranes and
place them suitably so that access to roads is
possible.
Strategy for
New India @ 75
84
• Enhance linkages between national waterways
and state waterways and feeder canals.
6. Facilitate access to capital for inland vessels
• Financing for inland vessels could be made part
of priority sector lending by banks.
• Categorizing inland vessels as infrastructure
equipment will further ease access to capital
issues for a sector where capital investments
and operational costs are high.
• Initially, viability gap funding needs to be given
at least for 10 years until the infrastructure is
fully developed, so that inland water transport
is competitive.
• We should consider waiving waterway charges
and lock charges until operable infrastructure is
made available.
• Revive the shipbuilding nance scheme in line
with the subsidy scheme that was in force
during 2002-2007, which led to high growth
rates in the shipping sector and full order books
for Indian shipyards.
7. Address technical and regulatory constraints
in inland waterways to ease movement of
inland vessels
• CCEA, chaired by the Hon’ble Prime Minister
approved the implementation of the
Jal Marg
Vikas
project (JMVP) to augment the capacity
of National Waterway-1 (NW-1) with technical
assistance and investment support from the
World Bank at a cost of INR 5369.18 crore.
We must ensure that the project is completed
by March 2023.
6
• From a regulatory standpoint, detention of a
vessel without a valid reason should not be
allowed.
• A clear directive needs to be issued for security
of inland vessels, crew and cargo.
• Strengthen existing Inland Water Transport
Directorates or Maritime Boards or set them up
in states where they do not exist to ease the
IWT business and to ensure efcient regulation
and facilitation of IWT for cargo movement.
________________________________________
1
Financial Express, September 19, 2016. Accessed May 8, 2018.
https://www.nancialexpress.com/economy/narendra-modi-govt-does-well-with-its-inland-waterway-move-but-infrastructure-is-a-
challenge/381439/.
2
In 2016, the government announced that INR 1 lakh crore would be dedicated to increasing India’s port handling capacity to 3,000
MMT by 2025.
3
Press Information Bureau, Government of India. April 12, 2017. “Major Ports Register 6.79 per cent Growth in Trafc over last year,
Outperform Private Ports for Second Consecutive Year.” Accessed May 8, 2018.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=160949.
4
Press Information Bureau, Government of India. December 20, 2017. “Ministry of Shipping – 2017 Consolidation.” Accessed May 8,
2018.
http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1513281.
5
Port capacity of major ports rerated on berthing policy as per international norms.
6
Press Information Bureau, Government of India. January 3, 2018. “Cabinet approves
Jal Marg Vikas
Project for enhanced navigation
on the Haldia-Varanasi stretch of National Waterway-1.” Accessed May 8, 2018.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=175208.
85
Objectives
• Achieve multi-modal movement of cargo on
par with global logistics standards.
• Reduce the logistics cost to less than 10 per
cent of GDP from the current level of 14 per
cent.
• Expand the logistics market to USD215
billion by 2020 from the current level of
USD160 billion.
1
• Improve logistics skilling and increase jobs
in the sector to 40 million by 2022-23 from
about 22 million in 2016.
• As per the approved National Trade
Facilitation Action Plan, reduce border
compliance time to 24 hours for exports and
to 48 hours for imports by 2020.
Current Situation
The Indian logistics industry employs more than
22 million people (as of 2016). Between 2011-12
and 2015-16, the logistics sector’s value has grown
at a compound annual growth rate (CAGR) of 7.8
per cent. However, existing logistics costs in India
are high relative to other countries. Logistics costs
have been estimated at 14 per cent of India’s GDP
relative to 9 per cent of GDP in the United States,
11 per cent in Japan, 12 per cent in Korea and
14.9 per cent in China.
2
A 10 per cent decrease in
indirect logistics cost has the potential to increase
exports by 5-8 per cent.
3
Recognizing its importance for exports and growth,
the government has included logistics in the harmo-
nized master list of the infrastructure subsector. This
will ease access to credit and simplify the approvals
process for building infrastructure in the sector.
The government has also created a new Logistics
Division in the Ministry of Commerce and Industry
that will focus on the integrated development of the
logistics sector, improving procedures and introduc-
ing new technologies.
Infrastructure or transport quality is a particular area
of concern for the logistics sector. About 35 per cent
of export-import cargo originates in or is destined
for hinterland locations. The World Economic
Forum’s Global Competitiveness Index (GCI) ranked
India 66th out of 137 countries in infrastructure in
2017-18. The World Bank’s Ease of Doing Business
ranks India 146 out of 190 countries in ‘trading
across borders’. India ranks lower than China (96),
Vietnam (93), Sri Lanka (90) and Indonesia (108).
Constraints
1. Cost of logistics: The cost of logistics
remains high due to challenges in accessing
nance, underdeveloped infrastructure, poor
connectivity and an unfavourable modal mix.
2. Coordination due to multiple stakeholders’
involvement: Logistics has four key
components that account for the majority of
the sector: transport, warehousing, freight
forwarding and value added logistics. Each
of these falls under different segments of
regulatory oversight, which adds complexity to
the system. The presence of multiple agencies
often leads to duplicate processes. Further,
17. Logistics
Strategy for
New India @ 75
86
non-uniform documentation across states
adds to transaction costs. While the recently
implemented Goods and Services Tax (GST) has
simplied documentation requirements across
states to some extent, there still remains further
room for improvement. Countries with multiple
agencies in logistics have reduced efciency,
coordination and competitiveness.
4
3. Warehousing capacity and fragmented
structure: India’s current reported warehousing
capacity is 108.75 million metric tonnes (MMT)
of which the private sector makes up less than
20 per cent. There is low value addition in the
warehouse sector. Handling and warehousing
facilities are still largely un-mechanized with
manual loading, unloading and handling in the
case of many commodities.
4. Seamless movement of goods across modes
and high dwell time: In addition to lack of
interoperable technology, the movement of
goods across modes suffers from the absence
of last mile connectivity and infrastructure. For
example, poor road and rail connectivity to
most non-major ports leads to delays in travel
time. The share of cargo moving through coastal
shipping is small, primarily due to the lack of
infrastructure and connectivity for feeder ships
that operate between smaller container ports.
5. Competition and underutilized capacity:
There is no level playing eld as the public sector
is provided benets that are not available to
private players such as container train operators
or foreign vessel owners, leading to limited
competition, capacity underutilization and other
inefciencies.
6. Interoperable technology across modes:
The lack of interoperability of software systems
used by the authorities governing different
modes of transport leads to inefciencies as it
increases transit time and the need for manual
intervention when switching modes.
7. Border compliance and document
processing time: India’s average border
compliance time (including customs regulations
and mandatory inspections) for exports
is 106 hours and for imports 264 hours.
India’s document processing time (including
documentary compliance for various agencies
including regulators) is an average of 38 hours
for exports and 61 hours for imports.
Way Forward
1. Rationalize tariffs and determine prices in
an efcient manner across different modes:
Tariff policies need to be rationalized. The
Railways chapter provides details on rail freight
while the Civil Aviation chapter highlights
the need to determine air cargo tariffs in a
consistent manner across airports.
2. Create an overarching body that maintains a
repository of all transport data: Such a body or
institute will be responsible for acquiring, man-
aging and disseminating data to internal stake-
holders. The proposed institute can also conduct
robust analysis of the data, which it should make
publicly available. This body can be a part of the
logistics portal that is under development.
3. Enhance efciency of warehouses and their
operation, especially to optimize food storage:
•
Create vertical silos for food storage and
transport food grains by specialized wagons.
We could operate smaller silos at the mandi
level connected to mother silos that have
bulk handling and rail connectivity. Further,
specialized wagons with top loading and
bottom discharge functions should be made
available for handling grains. These measures
will help reduce food losses.
87
•
Optimize existing warehouse space.
Existing
warehouses can be converted into multi-
storeyed ones to store multiple commodities
at the same time. This will greatly increase
warehousing space.
4. Increase emphasis on multimodal solutions:
Setting up multimodal logistics parks will help
address issues related to underdeveloped
infrastructure, an unfavourable modal mix
and connectivity. The government has already
approved 24 logistics parks under the
Bharatma-
la
programme and seven have been identied
under the
Sagarmala
programme. These may be
completed by 2022-23. They should reect best
practices from global logistics parks with respect
to comprehensive development and synergies
across modes of transport.
5. Allow private players to operate in CON-
COR and port terminals: There is no level
playing eld for private container train opera-
tors (CTOs) vis-à-vis the Container Corporation
of India (CONCOR). Providing shared space
at CONCOR terminals to private CTOs will
help utilize the infrastructure better. Similarly,
opening up port terminals to private players at
a fee will enhance capacity utilization.
6. Increase technology use to enhance
logistics:
•
Integrate technologies across modes of trans-
port by developing an integrated information
technology (IT) platform.
Increasing the in-
teroperability of technology across modes by
implementing container tracking systems, radio
frequency identication (RFID), etc., will reduce
delays and enhance efciency. The integrated
IT platform should be a single window for all
logistics related matters. The portal should be
linked to the IT systems of all transport modes,
and customs and state transport authorities. It
should act as a logistics marketplace.
•
Create an institutional mechanism for
technology adoption in transport.
India needs
to create an ofce, similar to the Ofce of the
Assistant Secretary for Research and Technology
(OST-R) in the USA, under the Commerce
Ministry’s newly created Logistics Division
to advance the use of innovation, develop
technology and create a skilled interdisciplinary
transportation workforce.
7. Shift towards international standards for
transport equipment and software: To
increase efciency and ensure compatibility, we
should gradually adopt international standards,
especially in operations, and adopt global
benchmarking on unit load devices such as
containers and pallets. While this will require
changes in the overall infrastructure of ships,
ports and railways, it will help realize savings in
cost, time and accounting. Associated handling
equipment such as forklifts, cranes, tractors,
scanning and inspection technologies, and
atbed rail wagons should be standardized and
become ubiquitous.
________________________________________
1
Annual Economic Survey 2018-19. Ministry of Finance.
2
National Transport Development Policy Committee (NTDPC). “India Transport Report: Moving India to 2032”, 2014. Data for China
are from the National Development Reform Commission, 2016.
3
Annual Economic Survey 2018-19. Ministry of Finance.
4
Annual Economic Survey 2017-18.
Strategy for
New India @ 75
88
Objectives
Given the relevance of digital connectivity to
economic growth and the need to eliminate the
digital divide by 2022-23, India should aim to
achieve:
• Physical digital connectivity across all states,
districts and
gram panchayats
(GPs).
• Delivery of government services digitally by
2022-23.
• Hundred per cent basic digital literacy across
the country to be able to leverage the benets
of digitization.
Current Situation
According to the Internet Trends 2017 report,
1
27 per
cent of India’s population (355 million users) uses the
internet. While this represents exponential growth
compared to the 4 per cent penetration in 2009 (see
Figure 18.1 below), there is scope for improvement.
The Digital India scheme launched in 2015
brought the topic of digitization to the forefront
of public discourse. Areas including construction
of broadband highways, public internet access,
e-governance and development of basic
information technology skills, etc., have achieved
considerable progress under this programme
2
.
18. Digital Connectivity
Figure 18.1: Increase in internet users and online penetration in India
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
300
350
400
2009 2010 2011 2012 2013 2014 2015 2016E
Online Penetration (%)
Internet Users (million)
Source: Internet Trends 2017 by KPCB
3
89
In 2011,
4
the scheme for the creation of a National
Optical Fibre Network (NOFN) was initiated to
connect all the GPs of the country with high-speed
internet. Although the project has lagged behind
its original timelines, signicant progress has been
made in the past two years. As of February 4,
2018,
5
under
BharatNet
, work had started in 1.24
lakh GPs of which 1.08 lakh GPs were service ready.
The targeted timeline to connect the remaining
1,50,000 GPs is March 2019. Furthermore, the
National Information Infrastructure (NII) will
ensure the integration of the networks and cloud
infrastructure to provide high-speed connectivity
to various government departments up to the
panchayat
level.
6
The components of NII include
networks such as the State Wide Area Network
(SWAN), National Knowledge Network (NKN),
BharatNet
, Government User Network (GUN) and
the
MeghRaj
Cloud.
The government also launched the Public Internet
Access Programme
7
to make 2,50,000 common
service centres (CSCs) operational at the
gram
panchayat
level to deliver government services
online. Under this programme, 1,50,000 post
ofces will be converted into multi-service centres.
The last mile connectivity, through Wi-Fi or any
other suitable broadband technology, is to be
provided at all GPs in the country, funded by the
Universal Service Obligation Fund (USOF). Since
the last mile connectivity will be provided by a
service provider, it will ensure the presence of at
least one telecommunications service provider
(TSP)/internet service providers (ISP) at each GP to
provide data service.
The government has identied 55,619 villages
8
with no mobile coverage. Most of these villages
are in the North-Eastern states. A comprehensive
development plan, to be implemented in phases,
has been initiated to cover remote villages in the
North-East.
Constraints
With the increasing role of technology in our daily
lives and the growing signicance of Industry 4.0,
India can only unlock its true potential once digital
connectivity, the basic building block for most
technological solutions, reaches the last mile. The
constraints that need to be addressed to unleash
the full benets of digital connectivity in India fall
under ve major areas:
1. Broadband connectivity
• Internet access is plagued by issues related to
quality and reliability, outages, call drops and
weak signals.
• The current denition of broadband of 512
kbps
9
speed is inadequate and not in line with
the expected rise in demand in the future.
• Existing networks have been strained by limited
spectrum availability and usage, affecting the
provision of quality services.
2. Digital access and literacy
• A signicant portion of our population does
not have access to devices such as laptops,
computers, smartphones, etc.
• Digital literacy in India is estimated to be less
than 10 per cent of the population.
10
3. Content in Indian languages
• Currently, most digital content is in English.
However, a KPMG
11
report suggested that “9
out of every 10 new internet users in India over
the next 5 years are likely to be Indian language
users”.
Strategy for
New India @ 75
90
4. Availability of e-services
• A large number of e-services are not available
on the digital platform and there is wide
variation across states in the availability of
citizen e-services. Currently, citizens have to
physically visit government ofces to access
most government-to-citizen (G2C) services, as
municipalities and other government bodies
have been slow to digitize their processes.
5. Cyber security
• The regulatory framework for cyber security is
inadequate.
• Hacking and denial-of-service attacks have
led to disruption of services, both in the
government and the private sector – banks
and governments increasingly face security
breaches.
Way Forward
Broadband connectivity
• A modied strategy for expediting the pace
of implementation of the
BharatNet
project
was approved on July 19, 2017. As part of the
modied strategy, the remaining 1.50,000 GPs
are to be connected in Phase-II through a state-
led model (8 states), private sector model (2
states) and CPSU model (10 states) by using an
optimal mix of media (OFC, radio and satellite).
Further, about 5298 GPs located in remote and
hilly locations with poor connectivity are being
connected on satellite media, so as to provide
broadband connectivity to all GPs. The service
delivery mechanism, by providing last mile
connectivity through Wi-Fi or any other suitable
broadband technology to all GPs, has been
made an integral part of the project. The project
is targeted to be implemented by March, 2019.
In addition, public Wi-Fi hotspots are being set
up by BSNL at its 25,000 telephone exchanges
in rural areas and Wi-Fi
choupals
are being set
up in 5,000 GPs by CSC-SPV under the Ministry
of Electronics and Information Technology
(MeitY).
• The provision of universal broadband
coverage at 50 Mbps to every citizen and
the enabling of 100 Mbps broadband on
demand to all key development institutions,
including educational institutions, are under
consideration in the new National Digital
Communications Policy, 2018.
• As the sector regulator, TRAI should consider
putting in place a credible system to track call
drops, weak signals and outages to ensure
the quality and reliability of telecom services.
The results may be put in the public domain.
Government should also put in place telecom
ombudsman for complaint redressal.
Quality of service
• Adequate spectrum availability is critical to
ensure service quality. Efcient spectrum
allocation in large contiguous blocks should be
explored. We should also explore migration to
new technologies which would resolve some of
the bandwidth challenges.
Access and digital literacy
• Digital literacy needs special focus at the
school/college levels. The National Digital
Literacy Mission should focus on introducing
digital literacy at the primary school level in
all government schools for basic content and
in higher classes and colleges for advanced
content. The multiplier effects of this mission
will be realized when these students in turn
educate their family members. Higher digital
literacy will also increase the adoption of
computer hardware across the country.
91
Content in Indian languages
• State governments should pay special attention
to creating content, particularly those relating
to government e-services, in Indian regional
languages.
To full the vision of making all government’s
online services available in all 22 ofcial
languages, there needs to be focused
collaboration between the centre, states and
researchers to promote Natural Language
Processing (NLP) in Indian languages. Machine
learning now makes this well within reach.
Focus could be laid on the automatic translation
of content into regional languages from Hindi or
English. Case studies like those of the European
Union, which had similar problems in making
content available in the languages of member
countries, should be explored to identify models
that can potentially be adopted.
Availability of e-services
• Individual ministries and states have to play a
pivotal role in ensuring that all their services
are available and easily accessible by citizens
over digital platforms. Digital platforms, that
enable real-time data updates, would increase
accountability, and facilitate monitoring, quality
checks and timely intervention by the higher
administrative authorities. Procurement of such
digital platforms could be standardized by the
central government based on an analysis of
successful case studies in India. This would
ensure expedited implementation across the
country. As mentioned earlier, ministries/states
should also ensure that the services are reliable,
safe and available in regional languages as well
as in Hindi/English.
Cyber security
• MeitY will need to evolve a comprehensive
cyber security framework for data security, safe
digital transactions and complaint redressal. The
National e-governance Division of MeitY should
periodically audit compliance of e-services
offered by state governments. It should bring
out a performance report of e-services with a
view to improve service delivery.
________________________________________
1
http://www.kpcb.com/internet-trends. Accessed May 08, 2018.
2
http://www.kpcb.com/internet-trends. Accessed May 07, 2018.
3
http://www.kpcb.com/internet-trends. Accessed May 07, 2018.
4
http://pib.nic.in/newsite/PrintRelease.aspx?relid=76838. Accessed May 06, 2018.
5
http://www.bbnl.nic.in/index1.aspx?lsid=570&lev=2&lid=467&langid=1. Accessed May 06, 2018.
6
http://www.digitalindia.gov.in/content/national-information-infrastructure-nii. Accessed May 06, 2018.
7
http://www.digitalindia.gov.in/content/public-internet-access-programme. Accessed May 07, 2018.
8
http://www.digitalindia.gov.in/content/universal-access-mobile-connectivity. Accessed May 07, 2018.
9
http://tec.gov.in/pdf/Studypaper/Study%20paper%20on%20BB%20Denition.pdf. Accessed May 07, 2018.
10
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-digital-india-un-
lock-opportunity-noexp.pdf. Accessed May 09, 2018.
11
https://assets.kpmg.com/content/dam/kpmg/in/pdf/2017/04/Indian-languages-Dening-Indias-Internet.pdf. Accessed May 02, 2018.
Strategy for
New India @ 75
92
Objectives
Leverage the ‘Smart Cities’ concept in select urban
clusters to:
• Drive job creation and economic growth.
• Signicantly improve efciencies in service
delivery.
• Leverage technology for inclusive, sustainable
and participatory development by 2022-23.
Current Situation
Smart Cities is an approach to urban development
characterized by area-based development, efcient
delivery of basic infrastructure and services in an
equitable manner and citizens’ participation.
The Government of India has so far selected 99
cities with an outlay of INR 2.04 lakh crore. These
cities have started implementing projects such as
smart command and control centres, smart area-
based development, smart roads, solar rooftops,
intelligent transport systems and smart parks. These
projects have the unique feature of integration
between different infrastructural elements of the
projects. As of 14 May 2018, projects worth INR
4,800 crores have been completed and works worth
more than INR 20,000 crores are underway, as per
the Ministry of Housing and Urban Affairs’ Smart
City MIS portal.
Constraints
The key operational challenge areas in the Smart
City Mission include the non-availability of the
following:
• An institutional mechanism for inter-agency
coordination, including special purpose vehicles
(SPVs), for effective delivery.
• A robust spatial plan as an overall framework
within which smart city planning and
implementation can happen.
• Smart mechanisms to enhance the voices of the
urban poor, slum dwellers, migrants and other
underprivileged citizens.
• A digital master plan or a digital strategy and
roadmap.
• Data-driven decision making for service delivery
and resource sustainability.
• Availability of skilled human resources to
handle various functional domains.
• Financing smart cities and nancial
sustainability of ULBs.
19. Smart Cities for Urban
Transformation
93
Figure 19.1: Four paradigms to leverage Smart Cities Mission
Leveraging
SCM
Engagement
Economy
Equity
Environment
Way Forward
The following strategies are proposed to leverage
the Smart Cities Mission across the four paradigms
of economy, equity, environment and engagement
in India by 2022-23:
Economy
•
Scaling area-based development
: There is a
need to measure the impact of current area-
based development projects on the ease
of living, economic growth, investments,
job creation and citizens’ participation. The
central government can consider transferring
the lessons learnt from such area-based
development projects to other cities. States
should also be encouraged to launch their own
state-level missions for other cities.
•
Mobility
: An integrated institutional
architecture for planning and coordinating
the regulation of mobility such as a Unied
Metropolitan Transport Authority is needed.
Spatial plans should provide for integrating
land-use and transport planning to support
more mixed-use development for enhancing
economic activity, reducing commuting time
and improving environmental quality. There
is a need for focused attention to public
transport, including existing intermediate and
para-transit services, especially in smaller
cities. A pooled green transport fund to
support such investments is recommended. A
high-level inter-ministerial electric vehicle (EV)
mission is necessary for proper coordination
on the EV agenda.
Strategy for
New India @ 75
94
•
Achieving desired service delivery levels
: Funds
for the provisioning of basic services and
infrastructure are accessed from complementary
missions, such as the Atal Mission for
Rejuvenation and Urban Transformation
(AMRUT),
Swachh Bharat Mission
(SBM), and
Housing for All (HFA). There is a need for a
framework that mandates measurable outputs
and outcomes for all capital investments in
infrastructure and services in cities. These
outputs and outcomes should be predened
and measured at quarterly intervals. The
present liveability assessment underway will
provide the baseline for measurement on 73
indicators.
•
Digital transformation roadmap
: Conventionally,
cities have been using information technology
and communication (ICT) in three ways: (1)
use a single application to address burning
problems, say, waste collection, and then
add more applications as per the needs and
priorities of the city; (2) build infrastructure and
add services, and (3) experiment with a number
of applications without having a long-term or
denitive vision in place.
The conventional ways ignore the value hidden
in human interactions – among citizens, with
the city’s infrastructure (e.g. roads, bridges,
parks) and the environment. These interactions
contain data and information and digital
technology has the potential to recognize and
capture the hidden value in their interactions.
To harness internet connectivity and its
various applications in governance and service
delivery, cities need to put in place a digital
transformation roadmap across both hard
infrastructure and software applications. A
digital transformation roadmap would recognize
and capture these interactions and the whole
becomes greater than the sum of its parts once
the information that ows in the “systems of
systems” is captured.
Additionally, the digital transformation roadmap
would also build on the considerable work
done in cities on geographic information
systems (GIS) and apply these for geo-locating,
mapping and publishing public assets in the
city such as parks, playgrounds, public toilets,
bus stops, streetlights, manholes, water and
sewerage lines, storm water drains, power
lines, etc., and linking these to grievance
redressal, participatory budgeting, transparent
works management, and contractor payments.
Municipal acts need to provide for a digital
transformation roadmap for ULBs as a
mandatory policy document, like spatial plans.
This will also help build data observatories for
multiple uses, including citizen engagement.
Equity
•
Inclusive development
: Cities must ensure that
the urban poor and slum dwellers including
recent migrants can avail of city services and
subsidies and are nancially included through
the
Jan Dhan Yojana
. A dedicated benchmark
could be considered to measure if benets
reach the targeted poor. Cities should dedicate
a single-window facility for the urban poor
to access basic services such as water supply,
drainage and sewerage, and affordable
housing in the form of dormitory and rental
housing. Urban poor communities and slums,
benetted by area-based development (ABD)
or pan city proposal (PCP) solutions, should be
mapped in conjunction with improvements in
parameters such as access to public assets and
reducing service decit including in the areas of
education and health.
95
Environment
•
Resilient cities
: It is strongly recommended that
India should mainstream the resilient cities
approach and integrate it with service levels
as indicated in the chapter on Approach to
Sustainability in our National Building Code
2016. The resilient cities approach should
also be in line with the 11th Sustainable
Development Goal (SDG), which emphasizes
the sustainable development of cities and
communities. Environment sustainability
should be recognized as a distinct goal and be
measured as part of service levels. The Ministry
of Housing and Urban Affairs (MoHUA) can
issue model guidelines in this regard.
Engagement
•
Data observatories in partnership with civil
society
: More than 20 smart command and
control centres are under implementation and
an equal number are under tendering. About
six of these centres have been completed in
Vishakhapatnam, Kakinada, Surat, Nagpur,
Vadodara and Ahmedabad, with nearly all of
them using open-source codes. There is need to
use the information available in these centres
to develop urban data observatories with a
exible architecture and continue open source
accessibility. The purpose of such observatories
is to serve as a decision support mechanism
for policy makers and to engage citizens. The
MoHUA guidelines should institutionalize the
need for regulation around data observatories
and make them open source in nature (by
limiting private ownership of such data), while
at the same time protecting the privacy of
citizens. The data observatory incubated by
the National Institute of Urban Affairs offers
one such model. Institutionally, there is need to
leverage information to achieve better inter-
agency coordination within ULBs and
with SPVs.
Strategy for
New India @ 75
96
Objectives
The key objectives of the
Swachh Bharat Mission
include:
1. Making India Open Defecation Free (ODF) by
October 2, 2019.
2. Carrying out extensive information, education
and communication (IEC) and behaviour change
campaigns to change the attitude of people
regarding healthy sanitation practices.
3. Ensuring scientic solid and liquid waste
management.
4. Augmenting the capacity of local bodies.
5. Creating an enabling environment for private
sector participation.
6. Eradicating manual scavenging.
Current Situation
The
Swachh Bharat Mission
(SBM) was launched
on October 2, 2014, to make India open defecation
free by 2019. It has two sub missions –1)
Swachh
Bharat Mission
(
Gramin
) for rural areas under the
Ministry of Drinking Water and Sanitation (MDWS)
and 2)
Swachh Bharat Mission
(Urban) for urban
areas under the Ministry of Housing and Urban
Affairs. Given the cross cutting impact of SBM, the
Ministry of Drinking Water and Sanitation is the
nodal ministry for SBM with several other ministries
being actively involved in achieving its goals.
SBM has the potential to address wide-ranging
issues. For instance, water and sanitation related
diseases continue to remain among the major
causes of death among children under ve years
of age. In India, the under-ve mortality rate is 50
per thousand live births as compared to the global
average of 41. The lack of sanitation facilities leads
to groundwater contamination and pathogen
contamination leads to diarrhoeal diseases,
resulting in malnutrition, stunting and death.
Women, who do not have access to toilets, mostly
relieve themselves under the cover of darkness, i.e.,
before dawn or after sunset. Such practices are not
only a threat to their physical security but are also a
cause of various diseases.
Swachh Bharat Mission
(
Gramin
)
According to Census 2011, only 32.7 per cent of
rural households had access to toilet facilities.
Only 39 per cent of households had access to
toilets before the launch of the Mission. Under the
Mission, from October 2, 2014 to March 2018,
about 6.95 crore individual household toilets have
been constructed. The rapid pace of construction
of toilets is due to mass mobilization of resources
and extensive behaviour change campaigns under
the mission. It has helped the country achieve
sanitation coverage of 81 per cent in rural India by
March 2018. About 3.50 lakh villages, 371 districts
and 13 states and 3 union territories have declared
themselves ODF.
Swachh Bharat Mission
(Urban)
As of March 2018, 47.04 lakh household toilets
and 3.18 lakh seats of community/public toilets
20. Swachh Bharat Mission
97
4. Non-segregation of waste.
5. Sustaining the change in behaviour patterns
among people.
6. Continued unwillingness of urban local bodies
(ULBs) to levy user charges.
7. Inadequate infrastructure for collection,
transportation and processing of segregated
waste.
8. The continuing practice of decentralized
treatment of waste.
9. Lack of on-site treatment of waste by bulk
generators.
10. Insufcient number of dustbins, particularly in
urban and peri-urban areas.
11. Lack of credit from nancial institutions for solid
and liquid waste management projects.
12. Discharge of untreated efuent into rivers.
have been constructed against the mission targets
of 66.42 lakh and 5.08 lakh respectively. Hundred
per cent door-to-door collection of solid waste has
been achieved in 62,436 out of 84,049 wards and
2,648 cities have declared themselves ODF. Waste-
to-energy production has reached 88.4 megawatts
and new plants that can produce 415 megawatts
are under construction.
Constraints
The constraints faced by the mission are largely
related to implementation challenges in meeting the
2019 targets. Some of these are as follows:
1. Lack of availability of space for construction of
household toilets in slum areas.
2. Issues regarding the operation and maintenance
of community toilets.
3. Non-availability of water.
Figure 20.1: Improvement in
Swachh Bharat Mission
(Gramin) coverage
0.00
20.00
40.00
60.00
80.00
100.00
120.00
A & N ISLANDS
ANDHRA PRADESH
ARUNACHAL PRADESH
ASSAM
BIHAR
CHANDIGARH
CHHATTISGARH
D & N HAVELI
DAMAN & DIU
GOA
GUJARAT
HARYANA
HIMACHAL PRADESH
JAMMU & KASHMIR
JHARKHAND
KARNATAKA
KERALA
MADHYA PRADESH
MAHARASHTRA
MANIPUR
MEGHALAYA
MIZORAM
NAGALAND
ODISHA
PUDUCHERRY
PUNJAB
RAJASTHAN
SIKKIM
TAMIL NADU
TELANGANA
TRIPURA
UTTAR PRADESH
UTTARAKHAND
WEST BENGAL
ALL INDIA
Coverage (%)
Coverage as on 02.10.2014 Coverage as on 31.03.18
Source: http://swachhbharatmission.gov.in/
Strategy for
New India @ 75
98
13. Tackling the problem of lagging states – of
the 1.56 crore household toilets yet to be
constructed in rural areas, 0.90 crore are to be
constructed in two states, namely Uttar Pradesh
and Bihar.
Way Forward
The strategies to tackle the challenges faced by
SBM have been categorized under four broad
heads – expanding the scope of SBM, inducing
behavioural change, expediting construction and
leveraging technology, and changing governance
and practices. These are detailed below.
Expanding the scope of SBM
1. The concept of
Swachhata
needs to be
integrated into hospitals, government ofces
and other public establishments.
2. Where space is a constraint, construct
community toilets with participation and
ownership of stakeholders. The responsibility
for operation and maintenance of community
toilets should vest with the community.
3. To ensure continued usage of toilets and limit
water used for ushing, rural toilets with steep
slope should be widely promoted in rural areas.
4. Bulk generators of waste should ensure on-site
treatment of waste.
5. All drains/tributaries owing to rivers should be
covered with sewage treatment plants by 2022-
23.
6. Give higher monetary compensation and social
security to rag pickers and small sanitation
workers for segregating waste. This will help
waste-to-energy plants as well as projects
related to dry waste management and help
reduce the burden on landlls.
7. The scope of SBM may be expanded to cover
initiatives for landlls and plastic waste.
8. Increase the number of community toilets along
the highways.
Inducing behavioural change
1. Plan intensive behaviour change communication
(BCC) and inter-personal communication (IPC)
campaigns beyond the SBM target year of
2019.
2. Draw up a clear and concerted behaviour
change communication campaign specically
aimed at
panchayats
and cities that have shown
slow progress towards ODF status.
3. Teach them young – Children should be made
aware of sustainable waste management
practices through suitable changes in the
school syllabus; engage college campuses and
teachers to spread awareness of these practices.
4. BCC should lay greater emphasis on
encouraging people to segregate waste into
wet, dry and hazardous waste right at the point
of waste generation.
5. Promote disposal of kitchen and home waste
at the local level through resident welfare
associations. A decentralized system of disposal
of waste needs to be in place, especially in
urban areas.
Expediting construction and leveraging
technology
1. To reduce the cost and time incurred on laying
sewage pipelines and constructing sewage
treatment plants, SBM should encourage the
use of bio-digester technology.
2. A special strategy should be adopted to
expedite the construction of household toilets in
the states of Uttar Pradesh and Bihar.
99
3. Adopt the wider use of twin-pit toilets. It is a
low-cost technology that decomposes waste
into bio-fertilizer.
4. Promote the use of modular wet waste disposal
machines or other such devices for the disposal
of bio-waste at the household level itself.
5. The cement and construction sectors should
be encouraged to consume material made of
recycled construction and demolition (C&D)
waste. Similarly, the fertilizer sector should
procure compost produced out of organic
waste.
6. Ensure the availability of adequate numbers of
dustbins in public spaces in urban and peri-
urban areas.
Changing governance and practices
1. Expenditure on bio-toilets/bio-digesters may
be considered for concession from the goods
and services tax (GST) to encourage large-scale
adoption.
2. Draft and implement a 5-year action plan to
integrate SBM and faecal sludge management
(FSM) at the ward level in cities.
3. Waste-to-energy projects are not bankable in
the absence of tariff orders by the appropriate
authority. Companies that want to establish
waste-to-energy plants should have tripartite
agreements in which one party is the producer
of energy from waste; the other two should be
the concerned municipal body and electricity
distributing company.
4. ULBs should be nudged to charge adequate
user charges for collection and disposal of
waste and maintenance of toilets. The user
charges for these activities are as important as
user charges for electricity and water.
5. Solid and liquid waste management projects
should be covered under priority sector lending.
6. To maintain the ODF status of villages and
cities, the government should continue to
monitor and undertake corrective measures for
areas that might be slipping back from ODF
status.
Strategy for
New India @ 75
100
Objectives
By 2022-23, India’s water resources management
strategy should facilitate water security to ensure
adequate availability of water for life, agriculture,
economic development, ecology and environment.
This broader vision can be achieved by attaining the
following sectoral goals:
• Provide adequate (rural: 40 litres per capita per
day (lpcd); urban 135 lpcd) and safe drinking
water (piped) and water for sanitation for
citizens and livestock.
• Provide irrigation to all farms (
Har Khet Ko Pani
)
with improved on-farm water-use efciency
(more crop per drop).
• Provide water to industries, encourage
industries to utilize recycled/treated water and
ensure zero discharge of untreated efuents
from industrial units.
• Ensure
Aviral
and
Nirmal Dhara
in the Ganga
and other rivers along with their tributaries.
• Create additional water storage capacity to
ensure full utilization of the utilizable surface
water resources potential of 690 billion cubic
metres (bcm).
• Ensure long-term sustainability of nite ground
water resources.
• Ensure proper operation and maintenance of
water infrastructure with active participation of
farmers/consumers.
• Promote R&D to facilitate adoption of the latest
technologies in the water sector.
Current Situation
Annual precipitation in India, including snowfall,
which is the main source of water, is about 4000
bcm. About 53.3 per cent of the total precipitation
is lost due to evapo-transpiration, which leaves a
balance of 1869 bcm water in the country. Of this,
the available utilizable water resource potential is
1137 bcm, comprising 690 bcm of surface water
and 447 bcm of ground water.
21. Water Resources
Figure 21.1: Status on average annual water availability
Precipitation
received 4000
BCM (100%)
Water Resources
Potential 1869
BCM (46.7%)
Utilizable Water
Resources 1137
BCM (28.4%)
Ground Water
447 BCM
(11.2%)
Surface Water
690 BCM
(17.2%)
101
According to the Water and Related Statistics pub-
lished by the Central Water Commission, per capita
annual water availability in the country has decreased
from 1816 cubic metres (cu m) in 2001 to 1544 cu
m in 2011. As per the Falkenmark Index, one of the
most commonly used measures of water scarcity, if
the amount of renewable water in a country is below
1,700 cu m per person per year, the country is said to
be experiencing water stress; below 1000 cu m it is
said to be experiencing water scarcity. The National
Commission for Integrated Water Resources Develop-
ment (NCIWRD) has projected the total demand for
water at 1,180 bcm for a high demand scenario.
Water resources are facing pressure due to
population explosion, urbanization, rising demand
for water from the agriculture, energy, and industry
sectors, pollution, inefcient use, poor management
and poor institutional mechanisms. Several regions
experience water scarcity due to the uneven
distribution of water resources over space and time.
The government has specic programmes for
various aspects of water resources. The scheme,
Pradhan Mantri Krishi Sinchayee Yojana
(PMKSY),
which is an umbrella scheme for irrigation has
prioritized 99 major and medium irrigation projects
for completion by December 2019. The government
also launched the “
Namami Gange
” scheme in
2014-15 to clean and rejuvenate the River Ganga
to maintain “
Aviral
” and “
Nirmal Dhara
” and ensure
its ecological and geological integrity. Data for the
period 2015-17 indicates improvement in water
quality in terms of dissolved oxygen and coliform
bacteria. However, a lot needs to be done in terms
of meeting the targets of sewage treatment plans
(STP) and of controlling household and industrial
waste. Besides, a scheme for groundwater
development and management to prepare aquifer
management plans and facilitate sustainable
management of groundwater has been launched.
Constraints
1. There is a huge gap between the irrigation
potential created (112.5 million ha in 2012) and
the irrigation potential utilized (89.3 million ha
in 2012). Apart from the underutilization of the
potential, the efciency of the irrigation systems
is low at 30 per cent to 38 per cent for surface
water and 55 per cent for ground water.
2. Despite clear evidence of rising water
stress, water is still used inefciently and
indiscriminately, particularly in agriculture. Poor
implementation and maintenance of projects,
absence of participatory irrigation management,
non-alignment of cropping patterns to the agro-
climatic zones, and absence of eld channels
(CAD works) are some of the challenges.
3. The Easement Act, 1882, which grants
groundwater ownership rights to the landowner
is one of the reasons for water over-use and
depletion of groundwater levels.
4. The subsidized pricing of water in various states
has resulted in non-revenue water and a sharp
decline in groundwater levels in all states.
5. As per 2011 Census, only 30.8 per cent of the
total rural households and 70.6 per cent of the
total urban households get piped water supply.
6. The sustainability of the source and growing
contamination of ground water in newer areas
are constraints in ensuring safe drinking water
supply in rural and urban areas.
Way Forward
1. On-going programmes
• By 2022-23, the water storage capacity needs
to be increased from the current level of 253
bcm to 304 bcm by completing on-going
projects on time.
Strategy for
New India @ 75
102
• A coordination mechanism at the eld level
may be set up for PMKSY to nd the reasons
for delays in the completion of projects and
corrective measures undertaken project wise to
ensure speedy implementation.
• The Ministry of Water Resources (MoWR) may
draw up an action plan to complete CAD works in
317 identied projects to reduce the gap between
the irrigation potential created and utilized.
• Other notable programmes that need to be
completed include the Ken-Betwa River linking
project, the Pancheshwar project, the Rajasthan
feeder and Sirhind feeders (Punjab &Rajasthan)
and the Siang project in North-East India.
• The National Mission for Clean Ganga needs to
coordinate with the Ministry of Drinking Water,
Supply and Sanitation for solid and liquid waste
management in 1600
gram panchayats
(covering
4464 villages situated on the banks of the Ganga
in ve states). Corrective measures need to be
taken to expedite the completion of the projects.
2. Water efciency
• Incentivize the wider adoption of sprinkler and
drip irrigation by diverting resources otherwise
used to subsidize power and surface irrigation.
• As per the fourth Minor Irrigation (MI) Census,
there are about 5 lakh water bodies/tanks with
an irrigation potential of 5.89 million ha. For
these, the MoWR’s programme to revitalize,
renovate and repair water bodies should be
signicantly expanded and adequately funded.
• Special emphasis should be laid on desilting of
water bodies, including river, lakes, ponds and
reservoirs.
3. Recycle of waste water
• With the country generating 140 bcm of
wastewater annually, a pilot scheme to irrigate
10 lakh ha with treated waste water by 2020
may initially be taken up.
• Industries should be encouraged to meet a
major share of their demand through recycled
water. Besides, programmes for smart water
meters and tradable permits for use of recycled
water may be launched.
4. Groundwater management
• As on date, development of groundwater, i.e.,
utilization of groundwater resources vis-à-vis
replenishable quantity, is 62 per cent. There is a
need to develop recharging zones at identied
places to make groundwater resources
sustainable using check dam, farm ponds, tanks
and injection wells.
• Participatory aquifer management initiated in
the 12th Plan National Aquifer Management
(NAQUIM) under PMKSY should be
strengthened through a network of partnerships
to control unbridled, competitive extraction
of groundwater since it is virtually impossible
to police more than 30 million groundwater
structures through licences and permits.
• The participatory approach to encourage
behavioural changes and community
engagement in ground water management at
the
gram
panchayat
level as envisaged in the
Atal Bhujal Yojana
(ABHY) should be adopted
and extended to other regions.
• Promote the use of solar pumps to improve
the utilisation of groundwater in Eastern India
where utilisation is hampered by the lack of
power. In Western India, solar pumps with a
buyback guarantee for surplus solar power can
offer reliable daytime energy for irrigation and
stable cash income as well act as an incentive
to conserve power and water.
• PMKSY –
Har Khet Ko Pani
– envisaging
enhancement of food production more than
two-fold in 96 prioritized most ‘deprived
irrigation districts’ in 12 states by creating
103
irrigation facilities through tube wells, dug wells,
bore wells and dug-cum-bore wells, should be
expedited. This will facilitate assured irrigation in
tribal and backward areas that traditionally have
been deprived of canal irrigation.
• Special focus should be placed on the quality of
rural drinking water supply in arsenic and uo-
ride affected areas by tapping multiple sources
through conjunctive use of surface water, ground
water and rain water harvesting. All new, piped
water supply schemes should have mandatory
provisions on operation and maintenance involv-
ing local communities and stakeholders.
5. Water harvesting
a. Watershed (check dam development)
• The MoWR may develop specic strategies to
tap water through watershed development
(check dams) in rain-fed areas, expand
micro irrigation coverage to 80 lakh ha, and
link ground water development to aquifer
mapping.
• The timeline for watershed development
projects needs to be shortened from seven
to four years with special efforts by state
governments. Funds available under MGNREGA
and state plans may be used for watershed
development projects.
• Introduce public-private partnerships in
the water sector, initially to develop micro-
irrigation-based CAD works based on a hybrid
annuity model. This should be accompanied
by a revision in water tariffs to recover at least
operation and maintenance costs.
b. Rainwater harvesting
• Model Building Bye Laws, 2016 circulated by
Ministry of Urban Development includes the
provision of rain water harvesting. Barring the
states/UTs of Manipur, Sikkim, Mizoram and
Lakshadweep, all states have incorporated the
provision in their respective Building Bye Laws.
It is suggested that the states ensure effective
implementation of the rain water harvesting
structures for buildings.
6. Suggested reforms
• To mitigate conicts and achieve equitable
distribution of water, an integrated river basin
management approach needs to be adopted.
The setting up of river basin organisations for
major basins may be expedited.
• NITI Aayog has developed a concept note
on Revitalization of Rivers, which may be
implemented on a pilot basis before being
expanded across major states.
• To ensure
Aviral
and
Nirmal Dhara
in the
Ganga, the river should be managed as a single
system.
• There is need for a scheme on medium term
measures for ood management. This should
include completion of incomplete works in the
states of Assam, Bihar, Uttar Pradesh, Uttara-
khand and West Bengal. Besides, long term
measures for Bihar, UP and NE states should
be explored to achieve permanent protection
from oods. The formation of North East Water
Management Authority (NEWMA) in North-
East states will comprehensively address the
ood issue in the region.
• A water regulatory framework should be
established for water resources in all states.
• An action plan should be drawn up to improve
water use efciency (with 2017 as the base
year) by 20 per cent in all sectors by 2022.
• The composite water management index
developed by NITI Aayog may be used as a
potent tool to assess and further improve the
efciency of water resources management.
Strategy for
New India @ 75
104
Objective
The objective is to maintain a clean, green and
healthy environment with peoples’ participation
to support higher and inclusive economic growth
through sustainable utilization of available natural
resources. The 2022-23 goals include the following.
Air pollution:
• Bringing down PM2.5 levels in Indian cities to
less than 50.
• Creating 175 GW of renewable energy
generation capacity.
• Eliminating crop residue burning.
• Ensuring the coverage of all households with
LPG for cooking.
Solid waste management
• Implementing effectively the Solid Waste
Management Rules, 2016.
Water pollution
• Encouraging industries to utilize recycled/
treated water to the extent possible and
ensuring zero discharge of untreated efuents
from industrial units.
• Ensuring
Aviral
and
Nirmal Dhara
in the Ganga,
Yamuna, and other rivers.
Forestry
• Increasing the forest cover to 33.3 per cent
of the geographical area, as envisaged in the
National Forest Policy, 1988.
• Improving the quality of existing forests.
• Encouraging Farm Forestry.
Current Situation
The Central Pollution Control Board (CPCB) has
identied 302 polluted river stretches on 275 rivers.
The government is aware of this challenge and
has launched National Mission for Clean Ganga
to address this concern. The total polluted riverine
length is 12,363 km. Moreover, Indian cities face
a high risk of air pollution. The rise in air pollution
can be attributed to rapid industrialization, high
urbanization, increased use of vehicles, uncontrolled
burning of crop residue and emissions from coal
power plants and brick kilns, etc.
Forests are critical to achieving sustainable
environmental management. In March 2018, the
Ministry of Environment, Forest and Climate Change
released the Draft National Forest Policy, 2018. The
1894 and 1952 versions of the forest policy largely
focused on the production and revenue generation
aspects. The National Forest Policy of 1988, for the
rst time, focused on environmental sustainability.
The new National Forest Policy seeks to increase
the sustainability of forest management in India. At
present, forest and tree cover occupies about one-
fourth of the total geographical area in our country.
The new forest policy aims to increase this share to
33.3 per cent. Moreover, out of the total land area
under forest cover, about 40 per cent has only 10 to
40 per cent canopy density.
22. Sustainable Environment
105
Solid waste generation and its treatment
is a pressing concern as well. In 2016, the
government had estimated an annual waste
generation of 62 million tonnes in the country,
including 5.6 million tonnes of plastic waste,
0.17 million tonnes of bio-medical waste, 7.90
million tonnes of hazardous waste and 1.5
million tonnes of e-waste. Of this, between 22
and 28 per cent was processed and treated.
1
Constraints
1. A major contributor to air pollution is the
practice of burning crop residue, particularly in
North India. Convincing farmers to discontinue
the practice by providing alternative methods of
disposal through economically productive use of
crop residues is a key challenge.
2. Lack of awareness of the ill effects of pollution
impedes efforts to control pollution. This makes
it difcult to bring about the behavioural
change that is critical to ghting pollution.
3. ‘Polluters should pay for the pollution’ principle
is not effectively implemented.
4. Agro-forestry is hampered by regulatory
restrictions. Besides, biodiversity conservation
and maintenance of healthy habitats for wild
life have to be aligned with sustainability goals.
Way Forward
Crop residue burning
To eliminate the practice of burning biomass (crop
residue), the Ministry of Agriculture, Cooperation
and Farmers’ Welfare should introduce suitable
modications in their guidelines of schemes for
farm mechanization to provide support to farmers
to purchase equipment to collect, transport and
sell biomass to processing sites for economic
benets.
The Task Force on Biomass Management,
constituted by NITI Aayog under the ‘Cleaner
Air, Better Life’ initiative, has made the following
key recommendations in its report titled “Action
Plan for Biomass Management” that need to be
implemented by the central and state governments
expeditiously:
• Extend nancial support to farmers in the short-
term for in-situ treatment of paddy-straw/non-
burning of crop residue.
• Create a “Clean Air Impact Fund” to provide
viability gap funding (VGF) for projects with
long gestation periods and low returns on
investment such as bio-power or bio-ethanol
projects.
KEY PILLARS FOR
SUSTAINABLE ENVIRONMENT
Limit Crop
Residue Burning
Reduce Air, Water
& Noise Pollution
Solid Waste
Management
Forest
Management
Climate Change
Mitigation
Figure 22.1: Strategies for achieving sustainable environment
Strategy for
New India @ 75
106
• Upscale technologies for crop harvesting and
utilization of farm residue
o Support service-based shared infrastructure.
o Provide process-based incentives for
entrepreneurs.
o Allow accelerated depreciation for farm
implements.
• Reward and monitoring at the local level
o Institute a reward scheme for village
panchayats
with zero burning.
o Put in place a mechanism to monitor farm
res.
• Provide regulatory support for business models
for crop residue utilization
o Re-assess the fuel quality criteria for
briquettes/pellets made out of crop residue.
o Issue directives to power plants to procure
paddy-straw briquette/pellet.
o Remove the size limitation for bio-power
captive generation.
• Create awareness amongst farmers for better
soil management practices
o Plan awareness campaigns for farmers.
o Recognize farmers following non-burning
practices.
o Design information tools for in-situ
mulching and on-farm management.
Solid waste management and air, water and soil
pollution
• Effective implementation of Solid Waste
Management Rules, 2016, which has
signicantly expanded the scope of efcient solid
waste management in the country, will help
achieve environmental sustainability by 2022-23.
• It is necessary to ensure the remediation
of contaminated sites, safe disposal of
hazardous substances, protection and
restoration of ecosystems through stringent
enforcement of relevant Acts, implementation
of specic schemes, generation of awareness,
stakeholders’ participation and application of
best practices. Action plans for remediation of
contaminated sites should be prepared and
implemented.
• The air pollution issue will require continued
efforts on the
Pradhan Mantri Ujjwala Yojana
.
The scheme has already met with resounding
success and it is recommended that continued
efforts be made to prevent any slippage back
to cooking using solid bio mass. Initially, the
scheme aimed to distribute 50 million LPG
connections to BPL households by 2019;
however, the target has been increased to
80 million households. As of 19 March 2018,
about 35 million connections had been
released.
• A task force should be set up to study and
implement measures to control pollution from
brick kilns. The focus of this task force should
be on the technological upgradation of kilns to
control pollution.
• Emission and efuent standards for industries
need to be revised and effectively implemented.
• Sewage treatment plants of adequate capacity
should be installed at suitable locations to make
rivers pollution free.
• Wastewater discharge from industrial units
into rivers and other water bodies should be
reduced to zero.
• The use of bio-digester toilets, a technology
licensed by the Defence Research and
107
Development Organisation (DRDO), may
be expeditiously considered for nationwide
implementation. It can be a complete game
changer as, if successful, it can do away with
the need to have sewers and sewage treatment
plants.
• Revised waste management rules including
Plastic Waste (Management and Handling)
Rules, Bio-Medical Waste (Management and
Handling) Rules, E-Waste (Management) Rules,
Hazardous and other Wastes (Management
and Trans-boundary Movement) Rules and
Construction & Demolition Waste Management
Rules should be effectively implemented.
• Introduce an eco-labelling scheme to promote
the sale of products made out of waste.
• Introduce stringent civil penalties to strengthen
enforcement of environment-related Acts.
Forest management
• Afforestation should be promoted aggressively
through joint forest management (peoples’
participation) and the involvement of the
private sector. Highly denuded forests and
wastelands in the country could be leased
out to the private sector for specied periods
for afforestation. Participation of people,
particularly those dependent on forests for their
livelihood, may also be encouraged along with
the private sector.
• Public land available along railway tracks,
highways, canals, etc., should be used for
greening India. Further, re-stocking of degraded
forests needs to be accorded priority.
• We should tap the huge scope that exists in
agro-forestry. States and UTs may consider
exemption of trees grown on private farmland
from permit/transit pass. Revenue record and
geo tagging should be used to verify the origin
of wood and wood-based products to identify
species extracted from farm forestry.
• The new National Forest Policy, after
incorporating the comments of states,
concerned central ministries/departments and
other stakeholders, should be expeditiously
implemented.
• The boundaries of national parks and wildlife
sanctuaries, which cover more than 5 per cent
of the country’s geographical area, need to be
protected and habitats for wildlife kept healthy.
• Undertake measures to convert vacant spaces
in urban areas into urban green areas. This
will help increase the overall tree cover in the
country, which is presently 2.85 per cent of
the geographical area, as per the India State of
Forest Report 2017.
Climate change
• By 2030, 40 per cent of cumulative power
generation capacity installed should be non-
fossil fuel based. The strategies to achieve this
are given in the chapter on Energy Supply and
Demand.
• Access to low cost nance especially through
the Green Climate Fund should be encouraged.
• Review all eight national missions under the
National Action Plan on Climate Change in
the light of new scientic information and
technological advances.
• New national missions on wind energy,
waste-to-energy and coastal areas should be
developed.
• The National Water Mission should be
re-designed for efcient water resource
management. Similarly, the National Mission on
Strategy for
New India @ 75
108
Sustainable Agriculture should be redesigned to
increase agricultural productivity and contribute
signicantly to achieving the vision of doubling
farmers’ income by 2022-23.
• Projects under state action plans on climate
change that have been endorsed by the Nation-
al Steering Committee on Climate Change need
to be implemented.
• Use the National Adaptation Fund for
Climate Change and other global funds for
strengthening resilience against climate change
in sectors like agriculture, forestry, infrastructure
and others.
• Scientic and analytical capacity for climate
change related assessments should be
strengthened.
________________________________________
1
‘Solid Waste Management Rules Revised After 16 Years; Rules Now Extend to Urban and Industrial Areas’: Javadekar, Press Informa-
tion Bureau, Government of India, Ministry of Environment, Forest and Climate Change, April 5, 2016.
INCLUSION
111
Objectives
• Universal access and retention:
o Hundred per cent enrolment and retention
at elementary education and secondary
education levels; achieve zero dropouts until
Class X.
o Equitable participation by all society seg-
ments, in terms of attendance, retention
and years of schooling to ensure maximum
social inclusion.
• Improvement in learning outcomes for
elementary and secondary education, as
measured by successive rounds of the National
Achievement Survey (NAS).
• Creating a robust framework for tracking
individual students across their schooling years
that incorporates data on their learning outcomes.
• Providing a real and viable alternative path for
vocational education starting at higher levels to
improve employability.
23. School Education
Figure 23.1: Gross and net enrolment ratios for elementary, secondary and
senior secondary
0
10
20
30
40
50
60
70
80
90
100
GER NER GER NER GER NER
Elementary Secondary Senior Secondary
Enrolment Ratios (%)
2013-14 2014-15 2015-16
Source: Unied District Information System for Education (U-DISE)
Strategy for
New India @ 75
112
• Strengthening support for children as part of
the school curriculum to improve child mental
health.
Current Situation
The enrolment ratios for the elementary level
are close to 100 per cent. In addition, the gross
enrolment ratios (GER) for secondary education have
also increased, even though the net enrolment ratio
(NER) is still low. Moreover, data shows enrolment is
largely similar across gender and castes.
The ASER surveys estimate that national attendance
in primary and upper primary schools is 71.4
per cent and 73.2 per cent respectively, with
considerable differences across states.
1
The
retention rates in elementary school are 70.7 per
cent. The retention rates amongst scheduled tribes
(STs) is 50.1 per cent.
The learning outcomes of those enrolled in the
schooling system need improvement. The previous
NAS conducted by National Council for Educational
Research and Training (NCERT) reports that over 60
per cent of Grade V students scored below 50 per
cent across subjects. Findings by an independent
ASER household level survey (2016) in rural areas
shows that among Grade V children, only 47.8 per
cent could read Grade II level text and only 26 per
cent could do Grade V level arithmetic.
Despite increasing access, enrolment in government
primary schools declined by 2.31 crores in absolute
numbers from 2007-08 to 2015-16 while enrolment
in private primary schools increased by 1.45 crores
over the same period.
2
The reasons for the move
from public to private schools is the perception
of better quality of education provided by private
schools amongst parents (which is also borne out
Figure 23.2: Learning outcomes from ASER survey 2016 for rural areas
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5 6 7 8
Proportion of Students (%)
Class
Proportion of children not able to do standard 2 para reading
Proportion of children not able to do division (three to one)
Source: ASER (2016)
Note: The division problem was three digit numbers by a one-digit number.
113
from data by ASER over the years), and growth in
private schools having affordable fees.
The government has already made signicant
efforts towards addressing the issue of poor
learning outcomes. Recent changes by the
government include the introduction of a new and
comprehensive National Achievement Survey. The
Ministry of Human Resource Development has also
spelt out the competencies and learning levels at
different grades on which school grading will be
based.
In 2016-17, 4,790 vocational training schools
across India were approved for providing vocational
education at the secondary level. Of these, 3,662
schools are implementing the scheme.
Finally, the mental pressure on students, especially
in secondary education, has been increasing. Data
from the National Crime Records Bureau shows
that student suicides have increased from about
6,600 in 2012 to about 9,000 in 2015, many of
these because of stress related to examinations and
careers. Thus, there is a need to reduce the mental
stress students suffer from.
Constraints
• Inadequate public funding in the sector.
• Disproportionate focus on school infrastructure
as opposed to learning outcomes.
• Challenges in governance and monitoring
mechanisms for learning outcomes.
• Accountability systems in government schools.
• Inadequate teacher training, large number of
teaching vacancies and rampant absenteeism.
• Limited options for vocational education in the
school system.
• Inadequate support and counselling given to
children in schools.
Way Forward
1. Education sector funding by government
Government spending on education as a whole
(not just school education) should be increased
to at least 6 per cent of GDP by 2022. At present,
allocations to the education sector by the centre
and states remains close to 3 per cent of GDP, while
according to the World Bank, the world average in
this regard is 4.7 per cent of GDP.
2. Revamped governance system to improve
monitoring and accountability
State governments should develop and formulate
robust mechanisms to enforce regulations on
teacher qualications, teacher absenteeism and
learning outcomes. Learning outcomes should be
regularly assessed by bodies independent of the
line ministries.
3. Gearing the system towards learning
outcomes
Rationalize public school structure
School integration or clubbing of small schools
(i.e. those with very low enrolment – see Table
23.1 below) could result in additional human,
nancial and infrastructure resources. States like
Rajasthan have already initiated school integration
programmes along with improved transport
facilities for sparsely populated regions to achieve
both higher quality and savings. The preliminary
result of these reforms has been a reduction in
teacher vacancies from 60 per cent to 33 per cent,
and a 6 per cent increase in enrolment in one year.
In addition, retention rates have also increased,
especially for girls.
3
Rajasthan’s experience could be
a good model to replicate.
Strategy for
New India @ 75
114
Right to learning and measurement of
remediation
• Given the amendment to Rule 23(2) of the
RTE, states should codify the expected learning
outcomes for each class and put greater
emphasis on continuous and comprehensive
evaluation (CCE) to achieve the dened learning
outcomes.
• The comprehensive national achievements
survey initiated in 2017 needs to be
institutionalised on an annual basis.
• The remediation process should be made part
of the education system and should be run
concurrently with regular classes so that no
child gets left behind.
• In addition, high-school readiness programmes/
tutorials, including bridge programmes,
should be incorporated just after class VIII or
in the early months of class IX especially for
remediation.
• The CCE should also encompass compartmental
exams to check the quality and outcomes of
remediation. Passing each subject either directly
or through subsequent CCE could be made a
necessary condition for eligibility to appear
in the subsequent grade’s exam. This may be
implemented with or without the ‘no detention
policy’.
Individualized tracking
An electronic national educational registry may be
conceptualised for tracking each child’s learning
outcomes based on CCE and nal exams through a
unique ID. This will help track the cohort survival
rate, and monitor students requiring remediation.
It will also help prepare a list of children who drop
out after the elementary education level. Further,
this will enable greater attention to be paid to the
needs of children from socially deprived groups and
those with physical or intellectual disabilities.
4. Flexibility in education stream and
vocational education
• Develop a system of awarding credits for
every subject and grade passed, specifying
the minimum credits required to appear in the
nal exam for any grade. This system of credits
may remain valid forever and be seamlessly
integrated across different levels of education,
providing an opportunity for life-long tracking
of learning outcomes in the electronic national
educational registry. This will enable bright
children to amass more credits in the subjects
of their interest, once the system attains
maturity.
• Give children the option, under the guidance
of the school and parents, of branching into
vocational courses from secondary school level
Table 23.1: Prole of public schools with low enrolment
Source: Geeta Gandhi Kingdon, “Put the onus on teachers”, Indian Express
Type of public school
Number of
schools
Avg. students
per school
Avg. spend per
child per year
Total teacher
salary bill
20 students or less enrolled ~1,00,000 12.7 Rs. 80,000 9,440 cr.
50 students or less enrolled ~3,70,000 29 Rs. 40,800 41,630 cr.
115
upwards. Only children who expressly choose
to continue with general education should be
allowed to do so.
• Develop separate track even within the general
education stream, as has been done in certain
advanced countries. A specially devised
aptitude test must be conducted in the IX grade
and re-checked in the Xth grade, based on
which students should be given the option of
choosing a ‘regular’ track versus an ‘advanced’
track. These two tracks would differ in the
difculty level and choice of subjects. Those
pursuing the ‘regular’ track should be given
the option of completing the ‘advanced’ track
syllabus through open schooling at a later point
in life.
• Design guidelines for states to implement
vocational education at the school level, which
may cover aspects such as selection of schools/
trades, tendering process for labs, database of
industry contacts for eld visits/guest lectures,
timings, workshops, permitting informal
apprenticeships or assistantship in the formal
system, etc.
• Pilot different innovation models in vocational
education and provide adequate funding for
successful innovative programmes.
5. Curriculum/syllabus
• Pre-primary and primary syllabus should
be designed on a skill/competency-based
continuum. At the pre-primary level, it would
help develop school readiness, and at the
primary level, it would facilitate multi-level and
multi-grade teaching.
• The vocational education syllabus should be
NSQF-aligned and ensure smooth transition
from school education to vocational education.
• The curriculum should include summer activities
and monthly study trips, including visits to
practitioners for practical learning.
6. Teacher training
• Improving the quality of teaching is an integral
aspect of improvement in school education.
Given its importance, it is being covered
separately in another chapter.
7. Reducing mental stress
• The above recommendations in terms of
remedial education and allowing different
tracks of education will help address students’
mental stress.
• Life skills, including coping with failure/crises
and stress management, should be included as
part of the school curriculum.
• Easy and safe access to mental health support
should be strengthened. Child helplines should
feed into easy and safe access to counselling in
schools, especially for children at risk.
• Easy and safe access to counselling and support
must be provided for girl children in schools,
especially focused on victims of abuse, violence
and other gender-related social evils.
________________________________________
1
ASER 2016.
2
Elementary education in India: Trends, National University of Educational Planning and Administration.
3
http://www.thehindu.com/news/national/UNICEF-report-shows-results-of-integrated-schools-in-Rajasthan/article14463872.ece.
Accessed May 03, 2018.
Strategy for
New India @ 75
116
Objectives
• Increase the gross enrolment ratio (GER) in
higher education from 25 per cent in 2016-17
to 35 per cent by 2022-23.
• Make higher education more inclusive for the
most vulnerable groups.
• Adopt accreditation as a mandatory quality
assurance framework and have multiple highly
reputed accreditation agencies for facilitating
the process.
• Create an enabling ecosystem to enhance the
spirit of research and innovation.
• Improve employability of students completing
their higher education.
Current Situation
India has 864 university-level institutions, 40,026
colleges and 11,669 stand-alone institutions.
1
The
number of university-level institutions has grown
by about 25 per cent and the number of colleges
by about 13 per cent in the last ve years. The
private sector accounts for a large share of these
institutions, managing 36.2 per cent of universities,
77.8 per cent of colleges and 76 per cent of stand-
alone institutions in 2016-17.
India’s higher education GER (calculated for the age
group, 18-23 years) increased from 11.5 per cent in
2005-06 to 25.2 per cent in 2016-17. However, we
lag behind the world average of 33 per cent and that
of comparable economies, such as Brazil (46 per cent),
Russia (78 per cent) and China (30 per cent).
2
Korea
has a higher education GER of over 93 per cent.
3
In addition, regional and social disparities continue
to exist in higher education: GER varies from
5.5 per cent in Daman & Diu to 56.1 per cent in
Chandigarh. Figure 24.1 indicates GER in terms of
gender and social groups. GER is 26.0 per cent for
males and 24.5 per cent for females, with females
constituting 46.8 per cent of the total enrolment of
35.7 million. While the GERs for scheduled castes
(SCs), scheduled tribes (STs), other backward castes
(OBCs) and minorities have been increasing, these
are still below the overall average in most cases.
Quality is a challenge in higher education in India.
Few Indian institutions feature in the top 200 in
world rankings. In comparison, China has seven
universities in the top 150 (3 in top 50) of the
Quacquarelli Symonds (QS) world rankings. These
rankings did rank three IITs and the IISc amongst
the top 20 BRICS universities in 2018. Another issue
is the employability of graduates.
Recognising the need to improve access, equity and
excellence in higher education in the country, the
government has taken signicant steps, including
the following:
• Implementation and continuation of the
centrally sponsored scheme,
Rashtriya
Uchchatar Shiksha Abhiyan
(RUSA): This
scheme seeks to improve access, equity and
quality in state higher education institutions
through a reforms-based approach and links
funding to performance.
4
The continuation of
RUSA was recently approved until March 2020
24. Higher Education
117
Figure 24.1: Gross enrolment ratio in higher education, 2016-17
0%
5%
10%
15%
20%
25%
30%
Male Female SC ST India
Enrolment Ratio (%)
Source: All India Survey on Higher Education, 2016-17
with an almost three-fold increase in allocation
compared to that in its rst phase (2013-17).
The second phase of RUSA puts a premium on
quality enhancement and addresses concerns
of access and equity in the aspirational districts
identied by the NITI Aayog.
• National assessment and accreditation re-
forms: While making accreditation of higher
education institutions mandatory, the reforms
move away from an intrusive system to a more
enabling, mixed method of assessment and
accreditation. The process of accreditation has
been fast-tracked and made more transparent.
The emphasis is more on self-assessment, data
capture, validation by third party evaluation and
objective peer review. This is a paradigm shift
from the subjective assessment parameters ad-
opted earlier. Ongoing reforms could lead to the
empanelment of multiple accreditation agencies.
• Regulations for graded autonomy to
universities and autonomous colleges: A three-
tiered graded autonomy regulatory system
has been initiated, with the categorization of
institutions as per their accreditation score by
the National Assessment and Accreditation
Council (NAAC) or other empanelled
accreditation agencies, or by their presence
in reputed world rankings. Category I and
Category II universities will have signicant
autonomy as shown in Figure 24.2. Similarly,
the University Grants Commission (UGC) has
also issued new regulations for granting
autonomy based on accreditation scores for
colleges. These colleges will have the freedom
to conduct examinations, prescribe evaluation
systems and even announce results but are not
allowed to grant degrees.
Strategy for
New India @ 75
118
Constraints
• Outdated and multiple regulatory mechanisms
limit innovation and progressive change.
• Outdated curriculum results in a mismatch
between education and job market
requirements, dampens students’ creativity and
hampers the development of their analytical
abilities.
• Quality assurance or accreditation mechanisms
are inadequate.
• There is no policy framework for participation
of foreign universities in higher education.
• There is no overarching funding body to
promote and encourage research and
innovation.
• Public funding in the sector remains inadequate.
• There are a large number of faculty
posts lying vacant, for example in central
universities, nearly 33 per cent of teacher
posts were vacant in March 2018;
5
faculty
training is inadequate.
Way Forward
1. Regulatory and governance reforms
• Ensure effective coordination of roles of
different higher education regulators, such
as the UGC, All India Council for Technical
Education (AICTE) and National Council for
Teacher Education (NCTE), and restructure or
merge these where needed.
Figure 24.2: UGC’s graded autonomy regulations for universities
Category I:
•Open constituent units/off-campus centres within its geographical jurisdiction
•Open research parks, incubation centres, university society linkage centre
•Academic collaboration with top foreign institutions
•Exemption from section 12B inspections & annual monitoring of off-campus
centres/study centres of private universities
•Start a new course/dept/school/centre
•Start NSQF-aligned skill courses
•Hire foreign faculty
•Merit-based incentives for faculty to attract talent
•Admit upto 20% of foreign students on merit with freedom to fix fees
•Offer courses in open & distance learning mode
Category II:
•Start a new course/programme/department/school/centre
•Start NSQF-aligned skill courses
•Hire foreign faculty
•Merit-based incentives to faculty to attract talent
•Admit upto 20% of foreign students on merit, with freedom
to fix fees
•Offer courses in open and distance learning mode
Category III: No changes in regulation
Source: UGC
119
• Amend the UGC Act to provide legislative
backing to the tiered regulatory structure.
• Create a framework to allow foreign
universities of global repute to operate in India,
in collaboration with Indian institutions to offer
joint degree programmes.
• Ensure that the selection process of Vice-
Chancellors of universities is transparent and
objective.
• Link at least a proportion of the grants to
performance and quality.
2. Curriculum design
• Domain experts in each educational
eld should be asked to develop a basic
minimum standard in curriculum that will
serve as a benchmark for institutions at the
undergraduate and post-graduate levels.
Institutions should be given the freedom to
innovate and expand curriculum beyond this
basic minimum standard. Curriculum and
pedagogy at all higher education institutions
should be updated continuously through
mandatory feedback from domain experts,
faculty, students, industry, and alumni.
• Diverse post-secondary career options should
be provided through skills/vocational training
that should be integrated seamlessly with
higher education and the skilling mission.
• Internships by students in undergraduate
courses should be encouraged and potentially
mandated in all professional and technical
courses. This would help with the practical
orientation of students.
3. Reforming accreditation framework
• All higher education institutions must be
compulsorily and regularly accredited. Despite
a two-fold increase in accreditation levels in
the last ve years, accreditation coverage is
still inadequate. One way to bridge this gap
by 2022-23 is to allow credible accreditation
agencies, empanelled through a transparent,
high quality process, to provide accreditation.
Accreditation must give adequate weightage
to outcomes rather than inputs only. Public
information material brought out by institutions
and their websites should prominently display
the accreditation status and grade.
4. Creating ‘world class universities’
• Twenty universities – 10 each from the public
and private sector – are being selected as
‘Institutions of Eminence’ and are helping to
attain world-class standards of teaching and
research. The funding of INR 1,000 crore over
a 5-year period to each institution, planned for
selected public universities, could be further
increased. Further, a graded mechanism to
ensure additional funds ow to the top public
universities should be developed. This is similar
to the model adopted by Singapore and China
to develop their top two public universities.
5. Performance-linked funding and incentives
• Only two out of 47 central universities have
NAAC scores of above 3.51, despite generous
funding available to them. An evaluation may
be undertaken to understand the challenges
faced by these central universities, and they
should be asked to develop strategic plans for
getting into the top 500 of global universities
rankings in the next 10 years.
• Going forward, funding to these institutions
should be linked to performance and outcomes
through the Ministry of Human Resource
Development and the newly constituted Higher
Education Funding Agency.
Strategy for
New India @ 75
120
• RUSA may be continued beyond March 2020,
subject to a credible third-party evaluation.
This reforms-based scheme has already made
signicant headway in getting state public
education institutions into the mainstream.
Continued support, linked to performance,
will go a long way in pushing some of India’s
leading state public universities up the ranking
ladder.
6. Development of teacher resources
• Develop stringent norms for faculty recruitment
in universities and colleges. A rigorous and
transparent process of identifying the best
talent for the higher education sector should be
put in place. An ecosystem should be created
where the most deserving talent is hired and
retained. This should include eligibility tests
of a high standard, such as existing UGC-
recognised NET, as a minimum eligibility
criterion for faculty recruitment, to ensure
recruitment of candidates with academic and/
or research aptitude.
• Quality teaching skills are in short supply
across disciplines. A central scheme may be
launched to attract teachers of Indian origin.
• Enable and encourage the recruitment of
practitioners with distinguished experience
from professional bodies/industry as faculty.
This can be achieved through the creation
of a separate parallel track, on which the
mandatory Ph.D qualication for faculty may
be relaxed. These industry practitioners may
also be encouraged to join as adjunct faculty in
the higher education institutions.
• Introduce pre-service faculty training (3-6
months), including faculty exposure to the
latest tools/techniques of quality teaching
and research. Continuous faculty training and
updating process should be introduced and
made mandatory.
• Develop a system of outcome-based faculty
evaluation in higher education, which is exible
across different categories of institutions.
• Conduct regular quality checks of journals, espe-
cially those that are used for evaluating faculty
on academic performance indicators (APIs).
7. Distance and online education
• There is a need to broaden the scope of Mas-
sive Open Online Course (MOOCs) and Open
and Distance Learning (ODL) and tap their
potential to provide access to quality education
beyond geographical boundaries. Universities
with high accreditation scores may be permit-
ted to offer online education programmes. In
regular courses, technology could be leveraged
to overcome faculty shortages.
________________________________________
1
AISHE 2016-17.
2
UNESCO, 2013.
3
World Bank.
4
ww.rusa.nic.in. Accessed May 10, 2018.
.
5
Ministry of Human Resource Development.
121
Objectives
There cannot be a quality education system without
quality teachers. Therefore, a thorough revamp of
the entire ecosystem of teacher education both at
the school and college level is necessary. In this
context, the objectives for 2022-23 include:
• Enforcing minimum teacher standards through
rigorous teacher eligibility tests and criteria for
the induction of teachers.
• Improving in-service teacher training system.
• Increasing teacher accountability for learning
outcomes of students.
• Addressing the problem of teacher vacancies
and teacher absenteeism.
Current Situation
The current institutional framework for teachers
training consists of the following:
• The National Council for Teacher Education
(NCTE) is the regulator for teacher education in
the country.
• NCTE has recognized 23,219 teacher-training
institutes in the country. Around 90 per cent
of these are privately run, of which 1,011
institutions
1
are for training teacher-educators
(M Ed). The intake of these teacher-training
institutes was 17.58 lakh in 2016.
• The in-service training framework includes 592
District Institutes of Educational Training (DIETs),
112 Colleges of Teacher Education (CTEs), 35
Institutes of Advanced Studies (IASEs) and 17
Block Institutes of Teacher Education (BITEs).
The block resource centres (BRCs) and cluster
resource centres (CRCs) form the lowest rung
of institutions providing in-service training to
schoolteachers.
As per the Right to Education (RTE) Act, a teacher
appointed in schools should have passed the
teacher eligibility test (TET) conducted by the
relevant government body. In institutions of higher
education, passing the National Eligibility Test
(NET)/State Level Eligibility test (SLET) has been the
minimum eligibility criterion for teaching.
While teacher education institutes churn out a
large number of candidates with a Bachelor’s
and Master’s in education, the quality of teacher
education has not been assured. In 2015, only
13.53 per cent candidates who sat for the Central
Teacher Eligibility Test (CTET) qualied.
2
A primary
reason for this is inadequate accreditation and
grading process followed by NCTE in the past.
In 2017, NCTE initiated the process of collecting
information from the institutes and grading them
based on their learning outcomes. At the higher
educational level, the pass percentage in the
UGC-NET exams is also low, where only 6 per cent
candidates qualify. Besides, the quality of PhDs in
severals institutions does not rise to the required
standard.
In-service teacher training needs upgradation.
While only about 20 per cent of school teachers are
still professionally untrained,
3
only 14.9 per cent
25. Teacher Education and Training
Strategy for
New India @ 75
122
teachers received in-service training for elementary
education in 2015-16 even though the
Sarva Shiksha
Abhiyan
(SSA) has a provision of 20 days of in-service
training for all teachers. The BRCs and CRCs are
primarily involved in administrative work and provide
very little resource support to schools.
In 2017, Section 23(2) of the RTE Act was
amended to ensure that all teachers acquire
minimum qualications prescribed under the Act
by March 31, 2019.
To assess the performance and progress of teachers,
the National Council of Educational Research and
Training (NCERT) had developed performance
indicators (PINDICS) in 2013. Fourteen states have
adopted or adapted the PINDICS and two more
have initiated its implementation thus far.
Teacher vacancies are also affecting the quality
of education. Out of the total sanctioned posts
of 51.03 lakhs, the number of working teachers
is 42.03 lakhs, leading to vacancies of 9 lakh
teachers in schools, of which 4.2 lakh teacher
vacancies are in SSA schools. Thirty-three per cent
of schools do not meet the pupil-teacher ratio.
Ironically, despite the overall shortage of teachers,
there are also 2.91 lakh surplus teachers across
the country because of an imbalance in regional
demand-supply.
4
Teacher attendance at schools is another issue
of concern. A study shows that 25 per cent of
teachers were absent from school, and only half
were teaching during an unannounced visit as
part of a national representative sample survey of
government primary schools in India.
5
Constraints
• There is insufcient regulatory monitoring of
teacher education institutions.
• Teacher eligibility tests in some states may not
be adequately robust.
• There are inadequate in-service training
programmes as well as lack of public funding
support.
• There is no robust system for balancing the
demand for and supply of teachers at the
regional or state level.
• There are limited accountability systems for
teachers.
Way Forward
Strengthening the regulatory framework
• A committee should be set up to develop
transparent/objective and rigorous criteria
to recognize institutions. NCTE may assess
institutions on these criteria and take steps to
enforce them.
• In addition, the accreditation system developed
should ensure the closure of fraudulent or
dysfunctional teacher education institutions.
• Five to six teacher training institutions of
eminence with an annual intake of 2000
students each need to be established.
Robust in-service teacher development
• In-service teacher professional development
programmes should be redesigned with
continuous progressive development through
different modes such as early tenure coaching,
peer-learning, resource centres, demonstration
classes, sabbaticals for research/advanced
studies, seminars and visits to other institutions.
• The
Pt. Madan Mohan Malviya National Mission
for Teachers & Teaching
, which seeks to “build
a strong professional cadre of teachers by
setting performance standards and creating top
123
class institutional facilities for the professional
development of teachers”
6
, should be taken up
in mission mode.
Accountability of teachers
• A national electronic teacher registry should
be set up as part of the National Education
Registry that has been proposed in the section
on school education. The entire educational
prole of each teacher aspirant may be hosted
in one section of this registry by all teacher-
training institutions. This will be an electronic
platform to bring together employers and job
aspirants in this sector. All teachers should be
listed on the National Educational Registry by
2020, while linking students to teachers.
• Performance Indicators (PINDICS), 2013,
and the Quality Monitoring Tools of NCERT
should be adopted or adapted by states/UTs.
Universal monitoring of teachers’ competencies
should be done using PINDICS or any such
state developed tool on an annual basis and
uploaded on the National Electronic Teacher
Registry. The salary increment of teachers
should be linked to an assessment of their
performance.
• States should test teachers tri-annually on the
same test designed for the children they are
teaching. It will ensure competency of teachers
in the subjects being taught by them.
• The Teacher Eligibility Test (TET) accross states
should be strenthened as per central TET:
standardization of results, quality benchmarking
of testing-items and extending the TET for
teachers at pre-school and classes 9-12 levels.
• The UGC-recognised NET/SLET should be
continued as a minimum eligibility criterion for
recruitment to Assistant Professor positions.
States that currently do not conduct SLET should
do so to enable availability of a larger base
of qualied candidates for faculty positions.
Eligibility tests should ensure quality in selection.
Tackling teacher demand-supply imbalance
• Each state must develop a teacher-demand
forecast model for all levels, starting from
elementary to higher education. The surplus and
deciency can be aggregated at the national
level and appropriate decisions taken on whether
to set up new training institutions or provide
leverage to existing ones to correct overall
deciencies.
________________________________________
1
http://www.teindia.nic.in. Accessed April 20, 2018.
2
Gohaini, M. Record 14 per cent of aspirants clear central teachers test. TNN, Chennai. Times of India e-Newspaper. April 3, 2015.
3
UDISE (2015-16).
4
AWP&B and PAB minutes 2017-18.
5
AWP&B and PAB minutes 2017-18.
6
Mission Statement for Pt. Madan Mohan Malviya National Mission for Teachers & Teaching.
Strategy for
New India @ 75
124
Obejctives
For harnessing the demographic advantage that
it enjoys, India needs to build the capacity and
infrastructure for skilling/reskilling/up-skilling
existing and new entrants to the labour force. The
goals to be met until 2022-23 are as follows:
• Increase the proportion of formally skilled
labour from the current 5.4 per cent
1
of India’s
workforce to at least 15 per cent.
• Ensure inclusivity and reduce divisions based on
gender, location, organized/unorganized, etc.
• India’s skill development infrastructure should
be brought on par with global standards by.
o Developing internationally compliant
National Occupation Standards (NOS) and
the Qualication Packs (QP) that dene a job
role.
o Making all training compliant with the
National Skills Qualication Framework
(NSQF).
o Anticipating future skill needs to adapt skill
development courses.
• Skill development should be made an integral
part of the secondary school curriculum.
Current Situation
According to the National Policy for Skill
Development and Entrepreneurship,
2
more than
54 per cent of India’s population is below 25 years
of age and 62 per cent of India’s population is
aged between 15 and 59 years. This demographic
dividend is expected to last for the next 25 years.
3
With most of the developed world experiencing
an aging population, India has the opportunity
to supply skilled labour globally and become the
world’s skill capital. However, the demographic
advantage might turn into a demographic disaster if
the skills sets of both new entrants and the existing
workforce do not match industry requirements.
Recognizing the challenge, the Government of
India has launched many initiatives to equip fresh
entrants with relevant skills and to upgrade the
skills of the existing workforce.
A dedicated Ministry of Skill Development and
Entrepreneurship (MSDE) was set up in 2014 to
implement the National Skill Development Mission,
which envisions skilling at scale with speed and
standards. On July 15, 2015, on the rst ever World
Youth Skills Day, the Honourable Prime Minister
launched the Skill India scheme.
4
To improve the relevance and quality of courses
offered by industrial training institutes (ITIs),
polytechnics and private training providers,
sector skill councils (SSCs) have been involved in
curriculum up-gradation/preparation, and in the
assessment and certication process. Courses are
being aligned to the National Skills Qualications
Framework (NSQF). Recognition of prior learning
(RPL) has been introduced to ensure certication of
and bridge training for the existing work force. The
year-end review 2017 released by MSDE suggests
that government initiatives are gathering pace. Until
26. Skill Development
125
2017, 2.5 crore candidates have been skilled under
the ministry’s programmes since its inception.
5
This includes 40.5 lakh candidates trained under
the
Pradhan Mantri Kaushal Vikas Yojana
(PMKVY),
and 74 lakh candidates under fee based training
programmes run by National Skill Development
Corporation (NSDC).
6
Constraints
The National Skill Development Policy
7
estimates
that only 5.4 per cent of the workforce in India has
undergone formal skill training as compared to 68
per cent in the UK, 75 per cent in Germany and 96
per cent in South Korea.
The India Skill Report 2018 states that only 47 per
cent of those coming out of higher educational
institutions are employable.
8
Given that 83 per cent
of the workforce is engaged in the unorganized
sector with limited training facilities, upgrading of
skills, both in manufacturing and services sectors
remains a challenge.
The major challenges to skill development are the
following:
• Mapping skill requirements sector-wise and
geographically.
• Making vocational training an aspirational
choice.
• Involving industry for improved quality and
relevance – scaling up the apprenticeship
programme.
• Integrating the informal sector into the skill
development ecosystem.
• Putting in place an effective, internationally
recognized assessment and certication system.
Way Forward
Mapping skill requirements for a demand driven
skill development ecosystem
• Skill development plans and strategies should
be developed by geography and sector by
Figure 26.1: Workforce that has undergone formal skill training
5.4%
52.0%
68.0%
75.0%
80.0%
96.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
India USA UK Germany Japan South Korea
Workers with formal skill training (%)
Source: National Skill Development Policy
Strategy for
New India @ 75
126
mapping the availability of infrastructure and on
the basis of assessing skill requirements both at
the national and state levels.
Talukas
/districts
should be required to provide the information
required for such mapping.
• Industry stakeholders must be incentivized to
provide data on their skill requirements on an
ongoing basis, which could be used as input
for the skill requirement assessment made at
different levels.
• Regular labour market studies should be
conducted and published by the MSDE
in collaboration with the SSCs. These
studies should capture changes in industry
requirements to assess the skill sets required
and introduce changes in training curricula.
• Create vocational training innovation centres for
systematic research and conducting longitudinal
studies on improving vocational education.
Improving training delivery and quality
• Capacities of teacher training institutes need
to be upgraded to ensure the availability of
qualied trainers. It is also important to provide
for cross learning by teachers and industry
experts through industry-institute linkages.
• A single regulatory body with branches in all
states should be set up to lay down minimum
standards for all players in the skilling system
like training providers, assessors, etc., and to
issue NSQF aligned certicates.
• To address the requirement of skilled workers
in the unorganized sector, scaling up RPL
is required under the PMKVY, using bridge
training, apprenticeship, dual training, work-
based learning and advanced courses.
• In addition to scaling RPL, there should be a
focus on the identication of transferable skills.
This can be done by developing a skills/trade
matrix; and highlighting the overlap of skills
across different trades, such as information and
communication technology (ICT), knowledge of
languages, etc. The most common transferable
skills across the board should be made part of
the basic skill development curriculum.
Vocational education in secondary schools
• As recommended by the Sub-Group of Chief
Ministers on Skill Development,
9
vocational
education may be initiated from class VIII. The
report pointed out that lessons could be drawn
from the “
The Himachal Pradesh Payment of
Skill Development Allowance to Educated
Unemployed Persons Scheme, 2013
.” This has
provided for an allowance starting from INR
1,000 per month for students who have at least
passed VIII standard.
10
This will help children
get acquainted with formal vocational courses
and apprenticeship training. Provisions for
credit transfers into higher education could also
be considered.
• Participation by private schools should be
incentivized with lower interest rates on loans
to expand training facilities.
Apprenticeship programmes
• Active advocacy is needed to create awareness
about recent amendments in the Apprenticeship
Act, 1961, and about the National
Apprenticeship Promotion Scheme (NAPS)
among different stakeholders.
• The claim process for reimbursement, through
which companies get appropriate refund for
funds spent on stipends under the NAPS, needs
to be streamlined.
• Facilitate the integration of the micro, small
& medium enterprises (MSME) sector into the
127
apprenticeship system by linking it to MUDRA
scheme.
Skilling
• Mainstreaming skill development with
education through a system for academic
equivalence to ITI’s qualications. This would
provide ITI candidates option to attain academic
qualication as well.
• An Overseas Employment Promotion Agency
should be set up at the national level under
the Ministry of External Affairs. Apart from
working with the MSDE to train and certify
Indian workers keen on overseas employment,
in line with international standards, it could
also support pre-departure orientation training
(PDOT), including language and soft skills
training modules. This agency could help in
identifying potential partners and streamlining
efforts of India international skill centers.
• Publicize role models/micro entrepreneurs who
have benetted from vocational training courses.
Funding
• Alternative nancial sources such as Corporate
Social Responsibility (CSR) funds, Compensatory
Afforestation Fund Management and
Planning Authority (CAMPA) funds, Building
& Construction Workers’ Cess, Members of
Parliament Local Area Development (MPLAD)
Fund, Mahatama Gandhi National Rural
Employment Guarantee Act (MGNREGA),
etc., should be tapped to expand the skill
programme and contribute to national skill
development fund.
Strengthening SSCs
• SSCs should be clustered and based on
occupations/functions with respect to
job standards/QPs across domains. New
technologies could also be considered as a
criterion for clustering. This would ensure
convergence in efforts of different SSCs.
• It is recommended that job roles of SSCs having
horizontal applicability across sectors should
be integrated and customized to a sector’s
requirements.
11
Monitoring and evaluation
• Since skilling is dynamic, it is necessary to
monitor programmes regularly. Hence, it is
necessary to develop state level indicators,
such as placement rates, which help
monitoring whether demand requirements are
being addressed, and the impact of various
government schemes.
• NSDC may get into partnerships with private
jobs counseling agencies for helping newly
skilled persons with soft skills and adapting to
local conditions.
________________________________________
1
https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=IN&view=chart. Accessed May 03, 2018.
2
National Skill Development Policy, 2015 – Page 55.
3
http://www.msde.gov.in/assets/images/Skill%20India/policy%20booklet-%20Final.pdf. Accessed May 03, 2018.
4
http://pib.nic.in/newsite/PrintRelease.aspx?relid=123296. Accessed May 03, 2018.
5
http://pib.nic.in/newsite/PrintRelease.aspx?relid=175282. Accessed May 06, 2018.
Strategy for
New India @ 75
128
6
http://pib.nic.in/newsite/PrintRelease.aspx?relid=175282. Accessed May 03, 2018.
7
National Skill Development Policy 2015 – framework document.
8
India Skill Report 2018.
9
http://niti.gov.in/writereaddata/les/Final%20report%20%20of%20Sub-Group%20Report%20on%20Skill%20Development.pdf.
Accessed May 03, 2018.
10
http://himachal.nic.in/showle.php?lang=1&dpt_id=14&level=2&lid=4282&sublinkid=14849. Accessed May 07, 2018.
11
One such example is Management and Entrepreneurship and Professional Skills Council (MEPSC).
129
Objectives
To revamp radically the public and preventive health
system in the nation through the following strategic
interventions:
• Mobilize public health action through an
integrated, inter-sectoral and pan-stakeholder
approach, targeted at communities and
individuals as well as grassroots organizations,
aimed at creating an unprecedented people-led
movement for health and wellness.
• Operationalize vital enablers - a) public
health and management cadre, b) public
health agency with capacitated supporting
institutions (c) municipalities and
panchayati raj
institutions
.
Current Situation
Public health, i.e., the science of keeping
communities healthy through the prevention of
disease and promotion of health and wellness,
has historically been a low priority in India. Of the
total current expenditure on health classied by
healthcare functions, preventive care accounts for
6.7 per cent. The money spent on curing people on
the other hand is 51 per cent of the expenditure
1
with the remaining money being spent on
pharmaceuticals, other medical goods and patient
transportation.
Although India accounted for only 18 per cent of the
global population in 2016, we accounted for 34 per
cent of the global tuberculosis burden and 26 per
cent of the premature mortality due to diarrhoea,
lower respiratory and other common infectious
diseases.
2
At the same time, non-communicable
diseases (NCDs), including cardiovascular
conditions, chronic obstructive respiratory diseases,
diabetes, mental health conditions and cancers
are now the leading cause of health loss, with
55 per cent morbidity and premature mortality
attributable to these conditions. The range of health
loss
3
across states is wide. Kerala and Goa have
the lowest rates while Assam, Uttar Pradesh and
Chhattisgarh have the highest rates.
4
Public health action and management is a scientic
and professional endeavour which should not be
left to untrained employees relying on common
sense alone.
A suboptimal public health system:
• Makes it challenging to tackle NCDs, which, in
the rst place, is all about prevention and early
detection.
• Causes us to resort to high-cost secondary and
tertiary health care in many cases.
• Diminishes our preparedness for new and
emerging threats such as bioterrorism.
• Compromises our ability to harness the
demographic dividend.
The nations with whom we compete or aspire
to emulate have achieved health and wellness
outcomes on the foundation of strong public
27. Public Health Management
and Action
Strategy for
New India @ 75
130
health systems. Thus, it is an absolutely essential
ingredient for building a New India.
During the last four years, the government has
taken several steps to strengthen public health
in the country including the launch of Mission
Indradhanush
and Intensied Mission
Indradhanush
as well as the National
AYUSH
Mission. Efforts have
also been intensied for eliminating Neglected
Tropical Diseases like
Kala Azar
and Lymphatic
Filariasis. Further, the war against Tuberculosis has
been escalated through the launch of the National
Strategic Plan in 2017.
Constraints
1. Diseases need to be prevented rst, a concept
that has historically been inadequately
acknowledged in India. The large burden of
NCDs requires lifestyle and community-level
interventions. Ensuring people eat right,
sleep right, maintain good hygiene, exercise,
and adopt a healthy lifestyle necessitates
concerted interventions at various levels of the
system.
2. In most states, population health management
positions are staffed by doctors, trained
primarily in the provision of curative services,
or by generalist civil servants. They have
limited public health training, which includes
an understanding of the causes and linkages
between risk factors and diseases as well
Figure 27.1: Preventable risk factors are the biggest contributors to the disease
burden, 2016
14.6%
9.8%
8.9%
8.5%
6.0%
5.9%
4.6%
4.1%
3.6%
3.6%
3.0%
2.8%
1.1%
1.0%
0.9%
0.6%
0.3%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
Malnutrition
Air Pollution
Dietary Risks
High Blood Pressure
High Fasting Plasma Glucose
Tobacco Use
WASH
High Total Cholesterol
High Body Mass Index
Alcohol & Drug Use
Occupational Risks
Impaired Kidney Function
Unsafe Sex
Other Environmental Causes
Low Physical Activity
Low Bone Mineral Density
Sexual Abuse & Violence
Contribution of Risk Factors to Disease
Burden (%)
Source: India: Health of the Nation’s States, 2017
5
; Disease burden measured in terms of Disability Adjusted Life Years
131
as disciplines including epidemiology,
biostatistics, social and behavioural sciences
and management of health services. Likewise,
hospitals are run by clinicians with little
expertise in managing health facilities.
3. The following preventable risk factors are
causes for a major proportion of diseases in the
country: maternal and child malnutrition, air
pollution, unhealthy diets, high blood pressure,
high blood glucose, tobacco consumption,
unsafe water, and poor sanitary practices;
of these, nutrition, environment, water and
sanitation are outside the purview of the health
ministry. Therefore, accountability for ensuring
vital public health actions is spread thin.
4. There is no single authority responsible for
public health that is legally empowered
to enforce compliance from other public
authorities and citizens, even though several
factors may require inter-sectoral action to
achieve a measurable impact on population
health.
Way Forward
1. Mobilize public health action at multiple
levels
• Public funding on health should be increased to
at least 2.5 per cent of GDP as envisaged in the
National Health Policy, 2017.
• Create an environment, through appropriate
policy measures, that encourages healthy
choices and behaviours:
o Make the practice of yoga a regular activity
in all schools through certied instructors.
o Increase taxes on tobacco, alcohol and
unhealthy foods such as soda and sugar
sweetened beverages.
o Co-locate AYUSH services in at least 50 per
cent of primary health centres, 70 per cent
of community health centres and 100 per
cent of district hospitals by 2022-23.
6
• Strengthen the Village Health Sanitation and
Nutrition Day platform to cover a broader set of
health issues across various population groups
instead of only focusing on child health.
• Activate multiple channels (schools, colleges,
women’s groups, traditional events like fairs,
social media platforms, National Cadet Corps
etc.) and prepare communication materials for
catalysing behavioural change towards greater
recognition of preventive health care.
• Make nutrition, water and sanitation part of the
core functions of
panchayati raj institutions
and
municipalities.
2. Institute a public health and management
cadre in states
Incentivize state governments to invest in creating
a dedicated cadre for public health at the state,
district and block levels:
• Characteristics of the cadre
o Train ofcials in public health related
disciplines including epidemiology,
biostatistics, demography and social and
behavioural sciences.
o Provide training in hospital management
to suitably equip personnel responsible for
managing large facilities.
o Create a career pathway up to the highest
levels within the state health departments
for those trained in public health, as well
as for those with clinical specialties.
o Allow mid-level providers responsible for
managing health and wellness centres
delivering comprehensive primary
Strategy for
New India @ 75
132
healthcare to rise to higher-level positions
within the cadre. Similarly, allow public
health functionaries at the block and
district levels to enter the cadre.
o Mandate a master’s level qualication, in
addition to specied training, for ofcials
taking on leadership positions.
• Institutional mechanisms
o Develop a model public health and
management cadre by drawing upon best
practices and engage with states to adapt,
rene and institutionalize the model.
o Formulate guidelines to create the cadre,
primarily by re-aligning the requisite skill
sets of existing functionaries with service
conditions.
3. Create a focal point for public health at the
central level with state counterparts
• Create a designated and autonomous
focal agency with the required capacities
and linkages to perform the functions
of disease surveillance, information
gathering on the health impact of
policies of key non-health departments,
maintenance of national health statistics,
enforcement of public health regulations,
and dissemination of information to the
public. An appropriately empowered and
capacitated National Centre for Disease
Control may be considered to play this role
with support from relevant organizations.
• Create a counterpart Public Health Agency
in each state, where they do not already
exist.
4. Miscellaneous
• Explore the need for a Public Health Act to
legislatively empower and, if necessary,
institutionalise the Public Health Agency
discussed above.
• Redene the role of the technical
directorate (Directorate General of Health
Services) and create a Directorate of Public
Health.
• Develop a comprehensive MIS including
baseline data for NCDs.
________________________________________
1
National Health Accounts 2014-15, MoHFW.
2
Global Burden of Disease 2016, Institute of Health Metrics and Evaluation.
3
Health loss is measured in disability-adjusted life years (DALYs). One DALY represents the loss of one year lived in full health.
4
Indian Council of Medical Research, Public Health Foundation of India, and Institute for Health Metrics and Evaluation. GBD India
Compare Data Visualization. New Delhi: ICMR, PHFI, and IHME; 2017. Available from http://vizhub.healthdata.org/gbd-compare/
india. Accessed November 19, 2017.
5
Published by the Indian Council of Medical Research, Public Health Foundation of India and the Institute for Health Metrics and
Evaluation.
6
The NITI Aayog’s three-year Action Agenda had recommended that the co-location AYUSH services should be ensured in 50 per cent
of primary health centres (PHCs), 60 per cent of community health centres (CHCs) and 100 per cent of district hospitals by 2020. Until
the end of the 12th Five-Year Plan period, AYUSH facilities had been co-located in 37 per cent of PHCs, 50 per cent of CHCs and 63
per cent of district hospitals.
133
Objectives
Under
Ayushman Bharat
,
scale-up a new vision
for comprehensive primary health care across
the country, built on the platform of health and
wellness centres (HWCs), to:
• Provide quality ambulatory services for an
inclusive package of diagnostic, curative,
rehabilitative and palliative care, close to the
people.
• Deliver preventive and promotion services, and
action on the ground to tackle determinants of
ill health locally.
• Create a mass movement for Healthy India
(
Swasth Bharat Jan Andolan
).
Current Situation
Primary health care is a key enabler for higher life
expectancy, better health outcomes and lower costs
for the nation. Primary health interventions help
detect diseases early, well before complications set
in, thus pre-empting the need for secondary and
tertiary care.
Developed nations such as the UK, Australia,
Canada, Netherlands and Sweden spend a large
share of their federal healthcare budgets on primary
care.
1
In India, primary care infrastructure exists as a
network of sub-centres, primary health centres and
community health centres. However, the focus of
services has remained narrow – largely prioritized
around reproductive, maternal and child healthcare,
and some communicable diseases (notably,
malaria). The battle against non-communicable
diseases can only be won through a primary health
system that ensures that chronic diseases are not
only detected early, but also that preventive action
is taken to ensure improved lifestyles.
The National Health Policy (NHP), 2017, envisages
comprehensive primary health care delivered
through HWCs. The policy also commits that
two-thirds or more of government spending
will be targeted at primary care. Additionally,
the announcement of
Ayushman Bharat
by the
government is a game changer.
Constraints
1. The existing primary health care model in the
country is limited in scope. Even where there
is a well-functioning public primary health
centre, only services related to pregnancy care,
limited childcare and certain services related
to national health programmes are provided,
which represent only 15 per cent of all
morbidities for which people seek care.
2
2. The conversion of 150,000 sub centres into
HWCs was announced in the budget speech
in 2017 and was enshrined in the NHP, 2017.
Although less than 4000 such centres were
sanctioned in 2017-18, the government
is committed to accelerating the pace of
sanctioning and putting up HWCs to meet the
target in good time.
28. Comprehensive Primary Health Care
Strategy for
New India @ 75
134
3. Supply side deciencies, poor management
skills and lack of appropriate training and
supportive supervision for health workers
prevent delivery of the desired quality of health
services.
4. A primary health care model for the growing
urban population has not been conceptualized,
notwithstanding a few assorted initiatives by
some states.
5. Although the National Health Mission focuses
on engaging communities through village
health, nutrition and sanitation societies, health
has not yet become a people’s movement.
6. Funding for health is inadequate, leading to
low spending on primary care.
7. Citizens have to incur high out-of-pocket
expenditure on primary health care, of which
the largest expenditure is on drugs.
8. There is a shortage of adequately trained and
motivated personnel.
Way Forward
1. Accelerate the establishment of a network of
150,000 HWCs
• Operationalize a network of 150,000 HWCs on
priority by 2022-23 in order to ensure sufcient
coverage of affordable primary care and lower
the burden on secondary and tertiary care.
• HWCs should provide services such as
screening and management of non-
communicable diseases; screening and basic
management of mental health ailments; care
for common ophthalmic and ENT problems;
basic dental health care; geriatric and palliative
health care, and trauma care and emergency
care.
Figure 28.1: Additional services to be provided under the New India
primary care system
Source: Based on the ‘Report of the Task Force on Comprehensive Primary Health Care’, MoHFW 2016
135
• These are in addition to the existing
requirement for primary care services related
to reproductive and child health, adolescent
health, and selected communicable diseases
covered by national health programmes.
• The key features of New India’s primary health
care system will be:
o A primary health care nucleus comprising
ve to six upgraded sub-centres coupled
with a primary health centre, and
population outreach.
o A team led by a mid-level health service
provider,
3
auxiliary nurse midwives (ANMs),
accredited social health activists (ASHAs)
and a male health worker responsible for
comprehensive primary health care services
for a population of about 5,000.
o Planning of health facility distribution in
districts to ensure that a continuum of care
is available on the principles of ‘time to
care’ through a strong referral linkage.
o Digitization of family records and
information from the community to the
facility level.
o Use of real-time data to guide public health
action and implementation monitoring.
o The HWCs would act as the ‘gateway’ for
access to secondary and tertiary health
services.
2. Enable mechanisms for rapid scale up
• Put in place the following work streams to
create 150,000 well-functioning HWCs across
the country – infrastructure; human resources
(mid-level professional recruitment, training
Figure 28.2: Revamped primary health system for New India
Use of real-time data to guide public health action and implementation
monitoring
The HWCs would act as the ‘gateway’ for access to secondary and tertiary
health services
2. Co-ordinate action for disease prevention and public health promotion and to
address social determinants of health
Provide preventive services to improve healthy behaviours for family health and
control the incidence of communicable and non-communicable diseases among the
population covered by HWCs.
Facilitate partnerships between HWC teams and other frontline development teams
(nutrition, education, Swachh Bharat etc.) to engage with communities to address
the socio-cultural and environmental determinants of ill health at the local level.
Figure 2: Revamped Primary Health System for New India
Source: School of Planning & Architecture, Delhi
3. Catalyse people’s participation for healthy India: Swasth Bharat Jan Andolan
Mandate and motivate HWC teams to work closely with village health, sanitation
and nutrition societies, panchayati raj institutions as well as all other constituents of
civil society in rural and urban spaces. This is vital because people are not just
targets of health services but partners and multipliers of health-related activities.
4. Enable mechanisms for rapid scale up
Put in place the following work streams to create 150,000 well-functioning HWCs
across the country – infrastructure; human resources (mid-level professional
recruitment, training and deployment; deployment and orientation of ANMs and
male health workers); an Information and Communication Technology (ICT)
Source: School of Planning & Architecture, Delhi
Strategy for
New India @ 75
136
and deployment; deployment and orientation
of ANMs and male health workers); an Infor-
mation and Communication Technology (ICT)
system; supply chain for drugs and disposables;
clinical and public health protocols and tools;
managerial/supervisory processes, and monitor-
ing, evaluation and accountability systems.
• Under
Ayushman Bharat
, put in place the
necessary institutional mechanisms with a
focus on health and wellness at the central
and state levels for effective, timely and robust
system level implementation as well as strong
engagement with departments/directorates of
health in the states.
• Establish special national and state level task
forces and ‘command centres’.
• Create mechanisms for rapid scaling up of
training.
• Develop empowered governance mechanisms
for efcient decision-making, coordination,
funds ow, procurement, contracting,
recruitment, construction and implementation.
• Mobilize Corporate Social Responsibility (CSR)
and Non-Resident Indians for funding HWCs.
• Some HWCs could also be mobile, particularly
for better access to remote communities.
3. Coordinate action for disease prevention and
public health promotion and to address social
determinants of health
• Provide preventive services to improve healthy
behaviours for family health and control
the incidence of communicable and non-
communicable diseases among the population
covered by HWCs.
• Facilitate partnerships between HWC teams and
other frontline development teams (nutrition,
education,
Swachh Bharat
etc.) to engage with
communities to address the socio-cultural and
environmental determinants of ill health at the
local level.
4. Catalyse people’s participation for healthy
India:
Swasth Bharat Jan Andolan
• Mandate and motivate HWC teams to work
closely with village health, sanitation and nutrition
societies,
panchayati raj
institutions
as well as
all other constituents of civil society in rural and
urban spaces. This is vital because people are not
just targets of health services but partners and
multipliers of health-related activities.
5. Emphasise concurrent learning, operations
research and innovation
• Undertake a well-funded research programme
to nd the best pathways for effective and
context-specic scaling up of primary health
care. This is critical because it is well-known
that a single model of primary health care may
not work for all districts/states in the country.
• Conduct research to assess the population-level
health impact of the programme and effects on
out-of-pocket expenses.
• Develop urban adaptations of comprehensive
primary care.
________________________________________
1
Government of India, Ministry of Health and Family Welfare: Report of the Task Force on Comprehensive Primary Health Care Rollout,
2016.
2
Government of India, Ministry of Health and Family Welfare: Report of the Task Force on Comprehensive Primary Health Care Rollout,
2016.
3
With a degree in nursing, AYUSH or community health, and with required training in public health and primary care.
137
Objectives
• Achieve a doctor-population ratio of at least
1:1400 (WHO norm 1:1000) and nurse-
population ratio of at least 1:500 (WHO norm
1:400) by 2022-23.
• Ensure availability of paramedics and doctors
as per Indian Public Health Standard (IPHS)
norms in high priority districts by 2020
(National Health Policy, 2017).
• Deploy mid-level providers (MLPs) to manage
the primary healthcare system.
• Generate at least 1.5 million jobs in the
public health sector by 2022-23, a large
number of which will employ women.
Current Situation
India’s health workforce is characterised by a
diversity of providers delivering services in allopathy
and alternative systems of medicine like ayurveda,
homeopathy, unani and siddha.
As of March 2017, there were 10.23 lakh
allopathic doctors registered with the Medical
Council of India or state medical councils.
Assuming 80 per cent availability, it is estimated
that around 8.18 lakh doctors may actually be
available for active service. This gives a doctor-
population ratio of 1:1613.
The current nurse-population ratio is 1:588.
1
Due
to the suboptimal quality of training offered by
several institutions that have mushroomed over
the years, limited career prospects and poor
working conditions, especially in the private sector,
there is a signicant shortage of skilled nurses in
the country.
Moreover, the distribution of doctors and nurses
across the country is uneven. Urban areas have four
times as many doctors and three times as many
nurses as compared to rural areas. Medical and
nursing colleges are concentrated in a few states,
e.g., Andhra Pradesh, Karnataka, Tamil Nadu,
Kerala, Gujarat and Maharashtra.
There are also severe shortages in the category
of allied health professionals (AHPs) including
medical lab technicians, optometrists and
radiologists. For instance, as of March 31, 2016,
there was a shortfall
2
of 13,659 lab technicians
at primary health centres (PHCs) and community
health centres (CHCs) across India. Similarly, there
was a shortfall of 3645 radiographers at CHCs. The
absence of a central regulatory authority for AHPs
has resulted in the mushrooming of institutes/
colleges without afliation or recognition, giving
rise to quality issues for this category of health
professionals as well.
As far as specialists are concerned, a large number
of posts are vacant all over the country. According
to estimates, India needs close to 0.5 million
additional specialists.
Ayushman Bharat
has
triggered the need for even more human resources
for health (HRH). There is also an acute shortage of
medical faculty. Of the 1,830 faculty posts across
29. Human Resources for Health
Strategy for
New India @ 75
138
Figure 29.1: Shortfall of specialists in government health centres compared to
the requirement based on existing infrastructure
Figure 29.2: Sanctioned posts of specialists vacant
83.4
76.3
83
82.1
81.2
84
76.7
83.2
80.1
81
72
74
76
78
80
82
84
86
Surgeons Obstetricians &
Gynaecologists
Physicians Paediatricians Total
Specialists (%)
2015 2016
74.6
65.4
68.1
63.6
67.6
68.2
61.9
70.2
62.8
65.3
0
10
20
30
40
50
60
70
80
Surgeons Obstetricians &
Gynaecologists
Physicians Paediatricians Total
Sanctioned Posts of Specialists Vacant (%)
2015 2016
Source: Rural Health Statistics, 2016
Source: Rural Health Statistics, 2016
139
six All India Institutes of Medical Sciences (AIIMS),
approximately 583 (31 per cent) had been lled up
until July 2017.
The government has made several efforts to address
the shortage and quality of HRH in the country.
These include the passage of the National Medical
Commission (NMC) Bill, 2017 by the Union Cabinet,
addition of 15,364 undergraduate and 9,855
postgraduate seats in medical colleges as well as
increasing the superannuation age of doctors to 65
years in the Central Health Service, among other
measures. Steps have also been taken to address
the shortage of specialists through the system
of diplomas from the College of Physicians and
Surgeons (CPS), for instance.
Constraints
• The regulatory system (Medical Council of
India, Nursing Council of India) has failed to
ensure adequate availability and quality of
health professionals.
• There is inadequate capacity to train doctors,
especially specialists and super-specialists.
• Private practice by medial faculty in teaching
institutions is rampant in several states,
compromising on the commitment to teaching
and institutional clinical work.
• Many state and private medical/nursing/dental
colleges have poor infrastructure.
• There is no comprehensive and consistent HRH
policy.
• Workforce shortages and uneven distribution
of doctors, nurses, specialists and allied health
professionals plague the sector.
• The quality of health professional training
and adherence to standards is sub-optimal,
including in the private sector.
• Health professionals in the public sector are
inadequately compensated and motivation
levels are extremely poor. Fair compensation
in the private sector, e.g., for nurses, is also a
challenge.
• There is paucity of data on HRH in the country.
Way Forward
1. Reform the governance of medical, nursing,
dentistry and pharmacy education in the
country
• Enact the NMC Bill, 2017.
• Revamp the AYUSH, nursing, dentistry and
pharmacy councils along the lines of the NMC
Bill, 2017.
• Establish a Council for Allied Health
Professionals to ensure standardization of
education and putting in place quality control
mechanisms for educational institutions,
teaching methods, clinical protocols and
workforce management.
• Put in place an updated curriculum for medical
and allied professions that keeps pace with the
changing dynamics of public health, policy and
demographics.
• Establish a nursing school in every large district
or cluster of districts with a population of
20-30 lakhs as per the National Health Policy,
2017.
• Take steps to revamp the regulatory system of
nursing education, ensure quality training in
nursing schools, develop specialties in nursing,
develop centres of excellence in nursing and
enhance the stature of government nurses.
• Take steps to stop private practice by faculty of
government teaching institutions by providing
attractive salaries and incentives.
Strategy for
New India @ 75
140
2. Enhance production of doctors (especially
specialists and super- specialists)
• While some steps have been taken, the system
of Diplomate of National Board (DNB) and
Diplomas from CPS, may be expanded. This
will help to address the shortage of specialists
in the country.
• Link at least 40 per cent of district hospitals
with medical colleges.
3
• Meet faculty shortages in new AIIMS with an
active search strategy, visiting/adjunct faculty
system (from India and abroad), and other
methods.
• Create pathways for training of doctors in
specialties and super-specialties at private
hospitals (certication, short courses, exchange
programmes, etc.)
• Utilize extensively and incentivize district
hospitals for formal (DNB/CPS diploma) and
informal specialty training of doctors and nurses.
• Provide opportunities for training in
specialized/cutting edge areas at the best
centres in the world for faculty of national
institutions of excellence (NIEs) (AIIMS,
PGIMER, JIPMER, NIMHANS) and of state
medical colleges of repute.
• Create conditions to facilitate the import of
doctors, especially those of Indian origin,
working abroad.
• Consider deploying teachers from universities
abroad as visiting professors at AIIMS/NIEs.
• An enabling framework for deployment of
doctors and specialists from the private sector
to government hospitals on a visiting/honorary
basis may be developed and piloted.
3. Develop a comprehensive HRH policy in
states
• To enable the formulation of a comprehensive
HRH policy in states for all categories, develop
a model policy covering issues pertaining
to staff recruitment, retention, transfer,
incentive structures for posting in difcult
areas including access to housing facilities,
performance management and competency-
based career tracks for professional
advancement.
4. Skill and deploy non-physicians and other
health providers
• Develop plans for training a full range of allied
health professionals such that it meets national
requirements as well as creates a surplus for
placements abroad.
• Create a cadre of primary healthcare
practitioners by introducing a three-year
competency-based dynamic course for primary,
community and family medicine.
• Place 150,000 skilled and independently
certied MLPs to manage the health and
wellness centres to be operationalized over the
next ve years.
• Explore some specic task shifting
opportunities like developing a cadre of
nursing practitioners and physician assistants.
5. Generate data on HRH, track progress
• Generate comprehensive real-time data on
forecasting, production capacity and skill mix
as well as generate trends with respect to the
key categories of HRH in the country.
• By 2019, put in place a system for tracking
progress against the stipulated HRH
requirements.
141
• Ensure meeting country commitments and
targets under the Global Strategy on HRH.
4
6. Engage private sector for skilling and
training HRH
• Establish partnerships with medical device
manufacturers as part of the Skill India and
Make in India programmes to identify skill gaps
and design appropriate curricula for training
programmes.
• Partner with private hospitals/private medical
practitioners to skill technicians, nursing
and para-nursing as well as para-medical
staff under the National Skill Development
Corporation’s Healthcare Sector Skill Council.
________________________________________
1
Nursing Council of India.
2
Rural Health Statistics, 2016.
3
NITI Aayog 3-year Action Agenda states that up to 20 per cent of district hospitals must be linked with medical colleges by 2020.
4
Global strategy on human resources for health: Workforce 2030, World Health Organization.
Strategy for
New India @ 75
142
Objectives
On the strong platform of
Pradhan Mantri - Jan
Arogya Yojana
(PM-JAY):
• Attain a coverage of at least 75 per cent of
the population with publicly nanced health
insurance (covering most secondary and tertiary
care procedures) by 2022-23.
• Reduce by 50 per cent the proportion of
households facing catastrophic health
expenditure from the current levels.
1
Current Situation
There have been noteworthy strides over the
past two decades in the quality of health care
delivered to citizens and population health
outcomes. Yet, there is wide variation across states
in the availability of resources, the status of state
health programmes, rural-urban differentials and
governance capacity.
Public health infrastructure in the country expanded
considerably following the launch of the National
Health Mission in 2005; however, there continues to
be a shortfall in several areas. In 2015, the number of
sub-centres (SCs) fell short of requirements by 20 per
cent, of primary health centres (PHCs) by 22 per cent
and of community health centres (CHCs) by 32 per
cent in rural India. The quality of public sector health
facilities has also suffered because of shortage of
personnel and lack of necessary supplies.
Data from the National Sample Survey Organisation’s
71st Round (January-June 2014) shows that only
28 per cent and 21 per cent of patients in rural and
urban areas respectively use the outpatient care
provided by health facilities in the public sector. The
corresponding gures for the usage of in-patient care
are 42 per cent and 32 per cent. The mixed health
system, therefore, remains largely dominated by
the private sector, which provides services at widely
varying costs and quality levels.
Public funding of health has been consistently low
in India (approximately 1.3 per cent of GDP). As a
result, out-of-pocket expenditure (OOPE) is 62 per
cent of the total expenditure on health. In 2007,
the central government launched the
Rashtriya
Swasthya Bima Yojana
(RSBY) to cover hospital
expenses of up to INR 30,000 for a family of ve
members living below the poverty line. Evaluation
studies for RSBY have shown that while it did
increase access to health care as well as non-
medical health spending for the poor, it did not
provide signicant nancial protection, perhaps due
to the exclusion of spending on outpatient care,
drugs and diagnostics.
The decision to launch PM-JAY under
Ayushman
Bharat
is a path breaking step towards Universal
Health Coverage. It aims to cover 10.74 crore
families at the bottom two quintiles with INR 5
lakh cover each year for secondary and tertiary care
hospitalization. The PM-JAY will be implemented in
alliance with state government schemes.
As per the NSSO 71st Round, out of the total OOPE,
63.5 per cent is on outpatient care. Of this, the
largest expenditure (71 per cent) is on medicines.
30. Universal Health Coverage
143
It is paradoxical that although India is one of the
largest suppliers of generic drugs to the world, a
signicant proportion of the country’s population
lacks access to essential medicines.
During the last four years, however, the government
has taken signicant steps to enhance access
to medicines especially for the poor and middle
classes. The prices 958 drugs have been capped
along with the prices of cardiac stents and knee
implants. The
Pradhan Mantri Bhartiya Janaushadhi
Pariyojana
has been expanded from 99 functional
stores in May, 2014 to 4,024 functional stores in
September, 2018.
Constraints
1. There has been inadequate focus on
comprehensive preventive care and primary
care in the past.
2. The multiplicity of government-sponsored
insurance schemes has resulted in the
fragmentation of the risk pool. A sizeable risk
pool comprising low- and high-risk individuals
is imperative to ensure the viability and
sustainability of insurance.
3. Since outpatient care, drugs and diagnostics
are not covered under several government
insurance schemes, people often delay seeking
care until they are severely ill.
4. The coverage ceiling of RSBY is inadequate.
5. There is an acute shortage of motivated human
resources for health, attributable at least
partly to the poor incentives for government
providers.
6. Access to drugs and medical devices at
affordable prices is an essential ingredient
of Universal Health Coverage. According to
estimates by the Central Drugs and Standards
Control Organization, around 84 per cent of
the active pharmaceutical ingredients (APIs)
for drugs manufactured in India are imported.
This dependence on import of APIs has gone up
more than fourfold between 2004 and 2013.
7. While the notication of medical devices
rules is an important step, a clearly dened
and comprehensive regulatory framework is
required. Additionally, approximately 75 per
cent of the current demand for devices is met
through imports.
Figure 30.1: Pillars of universal health coverage
Strategy for
New India @ 75
144
8. The prices of diagnostic tests can vary widely
across the country. For example, a lipid prole
test can cost Rs. 90 in some cities, going up to
Rs. 7,110 in others.
Way Forward
Recommendations pertaining to comprehensive
primary healthcare, public health action and human
resources for health are covered in other chapters of
this document. Other strategies for overcoming the
constraints listed are described below.
1. Roll out PM-JAY
• Establish the
Ayushman Bharat
-National Health
Agency at the central level and counterpart
institutions at the state and district levels for
management of the PM-JAY.
• Develop a robust, modular, scalable and
interoperable IT platform as per standards
formulated by the National Digital Health
Authority to enable paperless and cashless
transactions under the scheme.
• Put in place mechanisms for fraud prevention,
detection and control as well as for grievance
redressal.
• Design a comprehensive media and outreach
strategy to increase awareness of the scheme
among intended beneciaries and other
stakeholders.
• Institutionalise health technology assessment
at the central and state levels to determine the
service packages to be covered under PM-JAY
in the future.
• Develop costing frameworks for determining
accurate package rates for procedures.
• Develop standard treatment guidelines for
priority conditions.
• Monitoring, evaluation and research
o Put in place data analytics systems to guide
strategic purchasing
2
of health services,
forecasting and generating policy inputs.
o Institutionalize a mechanism for
undertaking independent audits of the
scheme.
o Conduct research on the population-
level impact of the programme including
nancial protection, healthcare access and
health outcomes.
2. Galvanize health facilities in the public
sector and engage the private sector
• Provide greater autonomy to public hospitals
to use claims money generated under PM-JAY
to improve facilities, purchase the necessary
drugs/tests and provide performance-based
incentives to staff.
• Strengthen district hospitals to conform to the
Indian Public Health Standards.
• Institutionalize ranking of district hospitals
based on their performance on health indicators
to foster competition and nudge them towards
quality improvement.
• Introduce appropriate gate-keeping
mechanisms for adoption by the proposed
health and wellness centres.
• Reform the compensation system for
professionals in public sector health facilities
by shifting to a blended capitation mode of
payment (part salary and part incentive based
on achieving pre-agreed outcomes).
• Trigger private investments in rural/supply
decit areas by providing appropriate incentives
for empanelling hospitals.
145
3. Ensure access to affordable drugs and
medical devices
• Institute a new Drug Price Control Order
(DPCO), which ensures rational drug prices by
reducing trade margins.
• Include consumables, in addition to drugs, in
the DPCO to control undue proteering.
• Finalize the national pharmaceutical policy to
enable access to affordable medicines, promote
the use of generic drugs, clamp down on
unfair marketing practices and give a boost to
local manufacturing to reduce dependence on
imports.
• Formulate and implement the e-pharmacy
policy to facilitate online access to quality
medicines in a cost-effective and timely manner.
• Review and iron out the challenges with the
business model of
Jan Aushadhi
stores to
ensure that they can function as self-sustaining
entities and scale up rapidly across the country.
• Find the best pathways for scaling up and
adapting the process of bulk procurement of
drugs adopted in states like Tamil Nadu and
Rajasthan.
• Boost domestic production of APIs by setting
up six large API intermediate clusters as per the
recommendations of the Katoch Committee.
• Streamline regulatory processes including
providing a single window clearance
mechanism to manufacturers.
• Introduce a separate Act for medical devices
as per global best practises, so that medical
devices are regulated separately from
pharmaceuticals.
• Formulate an appropriate pricing policy for
medical devices and re-examine it periodically
to ensure access to affordable devices for the
population while also ensuring a sufcient
return on investment.
• Develop the National List of Essential Medical
Devices along the lines of the National List of
Essential Medicines to improve patient care,
increase the affordability of tests, improve the
regulation and quality of diagnostic tests, and
promote the rational use of diagnostics.
4. Strengthen health research capacity
• Set up research consortia for diseases of high
priority including neglected tropical diseases
and emerging infections along the lines of
the India TB Research and Development
Corporation.
• Identify at least 20 academic or research
institutions at the regional level to act as hubs
capable of training a minimum of 500 doctors
every year.
• Ensure the presence of at least one model rural
health research unit in every state.
• Cover the entire country with a network of viral
research and diagnostic laboratories with a
testing capacity of more than 15 lakh samples
per year.
• Identify key research areas in traditional
medicine and facilitate collaborative research
with modern systems of medicine.
________________________________________
1
It is proposed that the achievement of this target be advanced to 2022 instead of 2025 as stated in the National Health Policy, 2017.
2
Strategic purchasing means active, evidence-based engagement in dening the service-mix and volume and selecting the provid-
er-mix in order to maximize societal objectives.
Strategy for
New India @ 75
146
Objectives
Under
POSHAN Abhiyaan
, achieve the following
outcomes by 2022-23, compared to the baseline of
2015-16 (National Family Health Survey-4):
• Reduce the prevalence of stunting among
children to 25 per cent or less.
• Reduce the prevalence of underweight in
children (0-6 years) to 25 per cent or less.
• Reduce the prevalence of anaemia among young
children (6-59 months) to 43 per cent or less.
• Reduce the prevalence of anaemia among
adolescent girls and women (15-49 years) to 38
per cent or less.
Current Situation
Under-nutrition is the prime risk factor in over 40
per cent of under-ve child deaths. Children with
under-nutrition, anaemia and iodine deciency
will have low IQ scores and productivity as adults.
A World Bank estimate
1
indicates that reducing
stunting can raise India’s GDP by 4-11 per cent. The
prevalence of stunting declines by an estimated 3.2
per cent for every 10 per cent increase in income
per capita. Similarly, a 10 per cent rise in income per
capita translates into a 7.4 per cent fall in wasting.
Thus, increasing per capita incomes through rapid
and equitable economic growth is a necessary
condition for improving nutrition outcomes.
31. Nutrition
Figure 31.1: Key nutritional indicators in India
0
10
20
30
40
50
60
70
Stunting Underweight Children (6-59
months) who are
anaemic
All women (15-49
years) who are
anaemic
48
42.5
69.4
55.3
38.4
35.7
58.4
53
Nutritional Status (%)
NFHS-3 NFHS-4
Source: NFHS 3 (2005-06) & NFHS 4 (2015-16)
147
Although progress has been made, according to
National Family Health Survey-4 (NFHS-4), 2015-16,
over one-third of all under-ve children are stunted
(low height-for-age), every fth child is wasted (low
weight-for-height), and more than 50 per cent of
the children are anaemic.
Other emerging economies such as Brazil (stunting
– 6.1 per cent, wasting – 1.6 per cent), China
(stunting – 6.8 per cent, wasting – 2.1 per cent)
and Mexico (stunting – 13.6 per cent, wasting –
1.6 per cent) fare far better on nutrition indicators
compared to India.
Ironically, at the same time, India is also grappling
with the rising menace of ‘over-nutrition’. Nearly
one fth of India’s adults are either obese or
overweight as per NFHS-4 data, leading to an
increased risk of diabetes and cardiovascular
disorders.
India can leverage its demographic dividend only if
its citizens attain optimum levels of health, nutrition
and cognition.
Recognising this, the government launched the
POSHAN Abhiyaan
in March, 2018 to provide police
and programmatic guidance to high burden states
and districts, facilitate multisectoral planning,
catalyse resource mobilisation and develop a
surveillance system for nutrition.
Constraints
1. Multidimensional determinants of under-
nutrition are inadequately reected in
policymaking
• Inadequate and poor-quality food is an
important, but not the only, cause of under-
nutrition.
• The underlying causes of malnutrition are
multifaceted and rooted in economic and social
factors like low levels of female literacy, lack of
access to clean drinking water and sanitation.
• At a more proximate level, nearly half of
childhood under-nutrition is attributable to
illnesses (in particular, diarrhoea, pneumonia
and measles) and foetal growth restriction
that results in low birth weight due to
maternal nutrition, maternal health, pregnancy
complications and epigenetic factors.
2. Design limitations of the Integrated Child
Development Services (ICDS)
• The design of the ICDS programme has an
important limitation – its focus on the rst 1000
days of the child’s life is inadequate. Over 80
per cent of brain growth occurs during the rst
1000 days of a child’s life. This has a signicant
bearing on work capacity, productivity and IQ
in adulthood. Hence, nutrition programmes in
the country must accord the highest priority
to this critical period of life. However, the
ICDS programme’s most prominent activities
are focused on the delivery of pre-school
education and hot cooked meals as well as
growth monitoring at
anganwadi
centres for
children between 3 and 6 years. Only 10% of
children between 6 and 13 months received an
adequate diet in 2015-16 (NFHS-4).
3. ICDS programme implementation
• The ICDS programme is beset with persistent
challenges such as shortage of staff and eld
workers, poor monitoring, instances of food
pilferage and poor quality of services.
• Given the complex nature of the challenge,
a multi-dimensional approach is a must. NITI
Aayog has already detailed a possible action
agenda in its National Nutrition Strategy,
2
which needs to be urgently implemented.
Strategy for
New India @ 75
148
Way Forward
1. Address policy and governance issues
• Provide greater exibility to states under the
POSHAN Abhiyaan
to adapt programmes
for context-specic implementation and to
experiment with innovative approaches to
attain high coverage, quality, equity and better
outcomes.
• Establish an institutional mechanism, outside
the government, to conduct independent
annual audits of the programme to achieve
implementation improvements.
2. Ensure convergent action at all levels
• Develop and implement Annual Integrated
Health, Nutrition and
Swachh Bharat Mission
(SBM) action plans for all districts under the
POSHAN Abhiyaan
.
o Ensure accountability of the local
administration.
o Actively engage
panchayati raj institutions
,
the public distribution system (PDS) and
public health engineering departments for
delivery of the action plans.
• Integrate health, SBM and nutrition services
at the village level through the Village Health,
Sanitation and Nutrition Committees and by
ensuring regular observance of Village Health
Sanitation and Nutrition Days (VHSNDs).
• Develop an implementation guide for
integrated action for nutrition (‘a cook book’)
for district administrators.
• Establish a state-level convergence mechanism
for nutrition under the chief secretary/
equivalent ofcer and corresponding structures
at the district and block levels.
3. Implement mission mode action in districts
with a high burden of malnutrition under
POSHAN Abhiyaan
• Set up convergence mechanisms at the state,
district and block levels; develop action plans
specifying timelines; ensure sufcient budgetary
allocation; strengthen monitoring systems;
galvanize coordination; demonstrate change
guided by annual surveys and intensively
monitor implementation by NITI Aayog.
4. Rene programme interventions
Focus on rst 1000 days
• As envisaged under the
POSHAN Abhiyaan
,
devise a strategy for additional home-based
contacts under the home-based young child
care initiative with:
o Mothers having children in the age
group of 3 months to 2 years to ensure
compliance with infant and young child
feeding practices as well as healthy
behaviours.
o Mothers having a child with moderate or
severe malnutrition for regular follow-up.
o These home visits should be conducted by
accredited social health activists, a second
auxiliary nurse midwife or community
infant and young child feeding counsellors.
• Replace the food-centric approach with more
broad-based action that includes healthcare
measures (special care of low birth weight in-
fants and immunization), birth spacing, delaying
age of marriage, exclusive breastfeeding for
6 months, and timely and adequate access to
complementary food interventions.
• Focus on immunization including Rota Virus
and Pneumococcal Vaccines; target the vaccines
preferentially to high focus districts.
149
Fortication
• Consider mandatory fortication of staples
produced in the organized sector and provide
incentives to the industry to do so.
• Incorporate fortied food grains and double
fortied salt within government programmes
such as ICDS, mid-day meal scheme, and PDS.
• Explore approaches to bio-fortication of grains
for micronutrient deciencies.
Research
• Create a national nutrition surveillance system
to track food quality and consumption patterns
and nutritional deciency proles for all age
groups in different regions.
• Conduct implementation research studies to
inform improvements in the programme.
o Key research areas include assessing the
effectiveness of conditional cash transfers/
vouchers in improving child nutrition and
the optimum formulation of supplementary
nutrition for young children.
o Evaluate ICDS programme in depth and
suggest reforms for greater effectiveness.
• Track changes in birth weight and prematurity
rates at the population level; conduct long-term
cohort studies on changes in body composition
and early biomarkers of metabolic disorders.
• Review and redesign nutrition programmes
targeted at adolescent girls; link these with pre-
pregnancy interventions.
• Test approaches to prevent childhood and adult
obesity at the population level.
5. Scale-up nutrition MIS and strengthen
monitoring mechanisms
• Establish an IT-based real time monitoring
mechanism by rolling out the Common
Application Software (CAS) developed by the
Ministry of Women and Child Development on
a countrywide basis.
• Undertake joint health and nutrition reviews in
the eld as a standard practice.
• Establish accountability with dened
responsibilities at all levels – state, district and
eld.
6. Make ‘
POSHAN Abhiyaan
’ a
Jan Andolan
• Make
POSHAN Abhiyaan
a community-led
movement with adequate political backing.
• Develop behavioural change communication
modules and ensure its use by all frontline
workers, especially during VHSNDs; emphasise
individual as well as group counselling.
7. Galvanize the National Anaemia Control
Programme
• Implement the revised strategy for the anaemia
control programme based on evidence;
incorporate home, community, school and facility
level action; embed the strategy in the activities
of the emerging health and wellness centres.
• Consider ‘screen and treat’ as a part of the
anaemia control intervention package.
________________________________________
1
http://www.worldbank.org/en/news/feature/2016/06/29/india-investing-in-a-childs-early-years-for-a-stronger-economy. Accessed
April 15, 2018.
2
http://niti.gov.in/writereaddata/les/document_publication/Nutrition_Strategy_Booklet.pdf. Accessed April 10, 2018.
Strategy for
New India @ 75
150
Objective
• To create an enabling environment, sans
institutional and structural barriers.
• To enhance the female labour force participation
rate to at least 30 per cent by 2022-23.
Current Situation
As highlighted in the Economic Survey 2018,
a number of indicators that reect the position
of women in Indian society have moved in the
right direction. Out of 17 indicators pertaining
to women’s agency, attitudes and outcomes, 14
have improved over time. On seven of them, the
improvement is at least on par with countries at
similar levels of development as India.
However, a declining female labour force
participation rate (LFPR) despite increasing levels of
education and declining fertility rates has emerged
as a worrying trend. The current female LFPR is
23.7 per cent (26.7 per cent in rural areas and 16.2
per cent in urban areas).
1
The declining trend is
particularly strong in rural areas, where it has gone
down from 49.7 per cent in 2004-05 to 26.7 per
cent in 2015-16
2
.
32. Gender
Figure 32.1: Progress with respect to gender-related indicators
0
10
20
30
40
50
60
70
Women aged 20-
24 years married
before 18 years
Women having a
bank or savings
account that they
use themselves
Women whose
Body Mass Index
is below normal
Women who are
literate
47.4
15.1
35.5
55.1
26.8
53
22.9
68.4
Number of women (%)
2005-06 2015-16
All India Average: 25,944
Source: National Family Health Survey Rounds 3 and 4
151
Figure 32.2: Female labour force participation
491
364
497
378
358
267
238
180
246
194
205
162
0
100
200
300
400
500
600
1993-1994 1999-2000 2004-2005 2009-2010 2011-2012 2015-2016
Female Labour Force Participation
Rate (per 1000)
Rural Urban
Source: Economic Survey
At the all India level, women are conned mainly
to the large, informal sector. It is estimated that
if women did as much formal work as men, India
would experience an additional 1.4 per cent GDP
growth.
3
On average, 66 per cent of women’s work
in India is unpaid, compared to 12 per cent of men’s.
The government has taken some important
initiatives to promote gender equality and welfare.
These include the
Beti Bachao, Beti Padhao
campaign, the Maternity Benet (Amendment)
Act, 2017, Pradhan Mantri Matru Vandana Yojana,
POSHAN Abhiyaan and the Pradhan Mantri Ujjwala
Yojana.
Constraints
• Constraints of workplace distance, inexibility
in working hours, lack of availability of crèches,
safety etc., deter women from participating in
economic activities.
• The absence of opportunities for part-time
work and challenges surrounding re-entry
into the workforce further worsen the
situation.
• Women’s work comprises mostly of invisible/
unpaid work.
Way Forward
1. Ensure gender-sensitive thinking for
legislation and policies keeping in view the
challenges faced by women including
• different life stages (single women, married
women, young mothers and women re-entering
the workforce after a break).
• levels of education (illiterate, school educated,
vocationally trained, college graduates,
professionals).
• geographic inequities (rural, urban, towns,
peri-urban areas, remote locations) and
marginalization (SC/ST, OBCs etc.).
• special need groups such as single mothers,
widows, homeless women and women with
disabilities, among others.
Strategy for
New India @ 75
152
2. Strengthen legal frameworks to eliminate
discrimination against women and promote
gender equity
• Craft legislations for women engaged in
the unorganized sector to ensure at least a
minimum set of gender-sensitive provisions
such as access to privacy, minimum wages,
maternity benets, leave and grievance
redressal.
• Ensure mechanisms for implementation of
mandatory laws like the Maternity Benet Act
and The Sexual Harassment of Women at Work
Place (Prevention, Prohibition and Redressal) Act,
including for workers in the informal sector.
• Create liberal laws/guidelines that encourage
women to re-enter the workforce after a break.
• Develop and implement Equal Opportunity
Policies:
o Establish a set of norms (for job
advertisements and selection guidelines,
availability of crèche at workplace,
grievance redressal, exi hours, part-time
work, maternity benets etc.) for both the
government and private sectors.
o Persuade the private sector, autonomous
organizations and others to voluntarily
inscribe a statement in job advertisements
to the effect:
‘We are an equal opportunity
organization and are fully committed
to women’s inclusion in our workforce’,
pending a formal policy. This can be
accomplished in partnership with
organisations like the Confederation of
Indian Industry that have developed equal
opportunity guidelines.
• Reward villages/districts with an equal child
sex ratio through information, education, and
communication (IEC) campaigns.
3. Generate gender-disaggregated data and
rank states on key indicators
• Establish a dedicated unit within the Ministry of
Women and Child Development.
o The unit should focus on data gathering,
conducting regular reviews with other
ministries on explicitly dened gender
targets (e.g. under the
POSHAN Abhiyaan
,
reduce anaemia rates among adolescent
girls and women in the 15-49 years age
group by at least one-third by 2022-23),
ensuring optimum budgetary resources
for women’s welfare and evaluating the
effectiveness of gender-based budgeting.
o In setting up this unit, lessons could
be leveraged from similar institutional
arrangements in countries like Rwanda
(Gender Monitoring Ofce) and Finland
(Gender Equality Unit). State government
should establish similar units at the state
level.
• Improve data systems to generate gender-
disaggregated data through the use of
technology, geo locating information and
generating maps in real time.
• Rank states on a set of reliable and comparable
indicators that reect changes in the status of
women at the national and sub-national levels
over time.
4. Encourage women’s participation in industry
and enterprise
• Develop sector/industry specic targets for
women’s employment and incentivize their
implementation by rms.
• Create policies and guidelines, on priority,
to enhance access to credit by women
entrepreneurs; provide facilitated credit access
153
pathways for single women, women’s self-
help groups/guilds/co-operatives, handicapped
women, and SC/ST women.
• Consider incentivizing sectors/companies that
have over 30 per cent women workers by
providing tax benets.
5. Improve asset ownership and economic
security
• Prioritize groups of women farmers seeking to
lease land, water bodies, etc., at the village
panchayat
level.
• Encourage joint registration with spouses/
sole registration of land in the name of the
woman through registration fee and stamp duty
concessions through special drives/awareness
campaigns.
• Recognize and secure women’s rights over
common property resources like irrigation
systems, shing grounds, forests and water.
6. Create enabling conditions for women
engaged in agriculture
• Ensure 50 per cent membership of women
farmers in Farmer Producer Organizations
(FPOs).
• Consider creating a separate budget to bear the
registration/processing fee for the registration of
women FPOs.
• Specially focus on skill development among
women, particularly for activities such as
soil conservation, social forestry, dairy
development, horticulture, organic farming, and
livestock rearing (including animal husbandry,
poultry, sheries).
• Target agricultural extension services to women
farmers as well, not just males.
7. Enhance women’s skills and leveraging
ability
• Consider extending the Post Graduate Indira
Gandhi Scholarship for Single Girl Child scheme
to families with two girl children.
• Provide relatively higher nancial incentives for
girls’ education until Class XII to curb the higher
dropout rate among girls and raise the average
age at marriage by keeping girls in schools.
• Promote skill development among women
in non-traditional work such as electronic
technicians, electricians, plumbers, taxi drivers
etc.
Figure 32.3: Examples of indicators that could be used for developing the
gender-based index and ranking states
Child Sex Ratio
Percentage of
Anaemic Women
Percentage of
Girls Completing
Secondary
Schooling
Maternal
Mortality Rate
Female Labour
Force
Participation Rate
Percentage of
Girls who are
Graduates
Percentage of
Women Voters at
All Levels
Incidence of
Crimes Against
Women
Enrolment Rate of
Girls at the
Primary School
Level
Percentage of
Women owning
Land, Livestock &
Housing
Strategy for
New India @ 75
154
• Organize women into professional groups/
guilds to improve their bargaining power.
• Use platforms like Digital India (i) to create apps
for the guilds (ii) for marketing and branding
purposes and (iii) to establish linkages with
corporates, markets and consumers.
8. Ensure mobility, security and safety for all
women
• Provide affordable housing, residential hostels
and gender friendly facilities in upcoming towns
and big cities.
• Improve rural connectivity and public transport
systems.
• Ensure gender-sensitive, rights-based and
time-bound trials as well as disposal of cases
pertaining to violence against women.
• Strengthen the standard operating protocols for
tackling crimes against women, including new
forms of violence such as cybercrimes.
• Introduce training (including refresher training)
on women-specic issues and laws for all ranks
and categories of police personnel, health
practitioners, protection ofcers, legal service
authorities, judicial authorities as well as other
stakeholders who interact with survivors of
violence, especially in remote areas.
________________________________________
1
http://labourbureaunew.gov.in/UserContent/EUS_5th_1.pdf. Accessed April 15, 2018.
2
NSSO Survey, Various Rounds.
3
McKinsey, 2015.
155
SENIOR CITIZENS
Objective
• To ensure a life of dignity, social security and
safety for senior citizens, enabling them to
actively participate in economic development
and the nation building process.
Current Situation
As per Census 2011,
1
India had 10.38 crore senior
citizens (60 years and above). Of this, 3.8 crore
were above the age of 80 years. The share of the
elderly in the population increased from 5.6 per
cent in 1961 to 8.6 per cent in 2011. It is expected
to increase to 20 per cent of the population by
2050.
Senior citizens face several challenges. They
are prone to chronic illness. However, access to
institutional support and specialized medical care is
skewed, with most of these concentrated in urban
areas and out of reach for the large number of the
elderly who live in rural areas.
The government has taken steps to provide various
tax benets to senior citizens including raising the
basic exemption limit from INR 2.5 lakh to INR. 3
lakh, increasing the deduction for health insurance
from INR 15,000 to INR 50,000 as well as raising
the deduction for bank interest from INR 10,000
to INR 50,000. The
Pradhan Mantri Vaya Vandana
Yojana
has also been launched to provide a
maximum pension of INR 10,000 per month with an
investment of INR 15 lakh.
Constraints
• Poverty and lack of income security makes it
difcult to meet even basic needs like food,
housing, healthcare, etc., for a large number of
senior citizens.
• There has been a rapid emergence of nuclear
families and ageing parents living away from
their children.
• There is a shortage of well-trained personnel
for delivering care giving and other services for
senior citizens.
Way Forward
• Given the changing demographics and socio-
economic needs, revise the National Policy
for Older Persons. The policy should cover
housing, income security, pension, and access
to healthcare. It should also emphasize the
concept of ‘ageing in place’ or ‘ageing in own
home’.
• Bring schemes pertaining to senior citizens
under the restructured Department of
Empowerment of Persons with Disabilities and
Senior Citizens. An integrated implementation
and monitoring plan should be developed in
consultation with stakeholders and the plan
33. Senior Citizens, Persons with
Disability and Transgender Persons
Strategy for
New India @ 75
156
should be reviewed periodically by an inter-
ministerial committee headed by the Secretary.
• Bring the necessary amendments to the
Maintenance and Welfare of Parents and
Older Persons Act, 2007, currently under
consideration by the Ministry of Social Justice
and Empowerment (MoSJE).
• Consider establishing an old age home in
every district by 2020 and ensure adherence to
minimum quality standards.
• Expand the National Programme for Health
Care of the Elderly to all districts following a
comprehensive evaluation of the scheme.
2
• Prioritize supply of aids and assistive devices for
senior citizens below the poverty line.
• Ensure a barrier-free environment in all public
buildings, parks, etc., for the elderly.
• Strengthen the National Institute of Social
Defence and Regional Resource Training
Centres to meet the rising demand for quality
caregivers.
PERSONS WITH DISABILITIES
Objective
• To create opportunities for and empower persons
with disabilities (PwDs) to realize their potential
and live a productive and dignied life.
Current Situation
According to Census 2011, India had 2.68 crore
PwDs constituting approximately 2.21 per cent
of the total population. India enacted the rst
legislation for PwDs in 1995, which has been
replaced by the Rights of Persons with Disabilities
Act, 2016. The Act is harmonized with the United
Nations Convention on the Rights of Persons
with Disabilities, 2006, and lists 21 categories of
disabilities. India also formulated its rst National
Policy for PwDs in 2006.
PwDs face several challenges.
3
According to the
Census 2011, 27 per cent of disabled children
between the ages of 5-19 had never attended an
educational institution. Only 50 per cent of the
Figure 33.1: School attendance of children with disabilities between 5-19 years
61%
12%
27%
Attending Educational
Institution
Attended Educational
Institution
Never Attended an
Educational Institution
Source: Census 2011
157
Figure 33.2: Literacy status of PwDs
Figure 33.3: Allocation and expenditure pertaining to the Department of
Empowerment of Persons with Disabilities
38%
55%
45%
62%
45%
55%
0%
20%
40%
60%
80%
100%
120%
Men Women Total
Literacy Levels of PwDs (%)
Literate
Illiterate
500
560
565 565
223.9
241.71
337.96
375.29
0
100
200
300
400
500
600
2012-13 2013-14 2014-15 2015-16
Budget & Actual Expenditure (INR
crore)
Budget Estimate
Actual Expenditure
Source: Census 2011
Source: Government of India budget documents
Strategy for
New India @ 75
158
disabled population in the 15-59 years category
was working.
They also tend to be stigmatized and discriminated
against and lag behind others with respect to
access to basic infrastructure and opportunities for
economic participation.
The Department of Empowerment of Persons with
Disabilities (DEPwDs) has the overall responsibility
for implementing several schemes; however,
utilization of funds has been a challenge.
Constraints
• Accurate identication of the disabled
population in India has been a major problem.
People tend to hide their disability to avoid
facing social stigma.
• Beyond Census statistics, there is a lack of
appropriately disaggregated data for PwDs
generated at regular intervals.
4
In India, the
last survey on disability was carried out by the
National Sample Survey Organisation in 2002.
• Disability related issues require multi-sectoral
action, which has been difcult to achieve in
practice.
• The National Institutes (NIs), Composite
Regional Centres (CRCs), District Disability
Rehabilitation Centres (DDRCs) and the
Rehabilitation Council of India (RCI) need
special attention to ensure adequacy of
resources and infrastructure as well as effective
monitoring of schemes.
Way Forward
1. Generate data on PwDs
• Disaggregate data by sex, age and socio-
economic status in order to identify reliable and
regular trends for informed policymaking.
• Feed data collected into an electronic database
for PwDs at the national level and link with the
Unique Disability Identity Card.
2. Bolster the institutional architecture and
policy framework
• Reorient the DEPwD to focus on data collection,
identifying gaps and evaluating the impact of
various schemes, instead of focusing on the
implementation of a large number of schemes
with small budget allocations.
• Bring programmes focused on improving
specic issues related to PwDs under the
purview of the relevant line ministries.
• Earmark at least 5 per cent of the total budget
of social sector ministries for schemes for PwDs.
3. Education
• Include courses in disability etiquette and
success stories on PwDs in the mainstream
curriculum to change attitudes towards PwDs.
• Provide special education training in teacher
training courses.
• Enhance scholarships/fellowships to students
with disabilities.
• Make schools more inclusive by addressing the
barriers related to the physical environment
(e.g. accessible toilets), admission procedures
as well as curriculum design.
• Ensure that schools have at least one section
of every class accessible under the Universal
Design Guidelines.
• Foster partnerships between the Ministry of
Human Resource Development and MoSJE to
promote synergies among inclusive and special
schools in the government and private sectors.
• Develop indicators for rating schools on
inclusivity.
159
• Include disabled friendly sports, cultural and
technical programmes in schools and colleges.
4. Healthcare
• Provide aids and assistive devices to at least 3
lakh beneciaries every year.
• Conduct cochlear implant and corrective
surgeries for 5000 children annually.
• Establish 20 state spinal injury centres.
• Set up early diagnostic and intervention
centres at the district level to screen children
and identify special needs or requirements for
assistive devices at an early age.
5. Employment and income generation
• Integrate the skill development scheme with
schemes of the National Trust (e.g., Disha), to
address the needs of the intellectually disabled.
• Establish dedicated training centres for PwDs to
meet the requirements of the private sector.
• Integrate initiatives of various ministries
to provide skill training, soft loans and
entrepreneurship opportunities to PwDs.
6. Institutional strengthening
• Upgrade NIs into centres of excellence.
• Establish 50 CRCs in states having a population
of more than 6 crore.
• Provide comprehensive rehabilitation services to
50 lakh PwDs through the NIs and CRCs.
• Enrol 17,000 rehabilitation personnel in various
long-term courses offered by NIs and CRCs
every year.
7. Accessibility and inclusivity
• Make the Accessible India Campaign a mass
movement with the involvement of citizens and
civil society.
• Conduct awareness programmes in collab-
orations with DDRCs, CRCs and Vocational
Rehabilitation Centres (VRCs).
• Incorporate universal design and accessibility
standards in engineering, architecture and
computer science studies.
• Introduce the requirement of an accessibility
certicate for all future commercial enterprises
above a specied size in order to be awarded a
completion certicate.
• Extend the DDRC schemes to all districts.
• Construct residential homes for disabled adults
whose parents are no longer alive.
• Adopt a life-cycle approach for community-
based rehabilitation in mission mode.
TRANSGENDER PERSONS
Objective
• To ensure a life of dignity, social security and
safety for transgender persons, enabling them
to actively participate in economic development
and the nation building process.
Current Situation
As per Census 2011, India had 4.87 lakh
transgender persons. The transgender community
is among one of the most marginalized
communities in the country. Extreme social
exclusion diminishes their self-esteem and is
a violation of their human rights. An Expert
Committee constituted under the direction of the
Honourable Supreme Court recommended several
measures to ameliorate their problems. Following
that, the “Scheme for Transgender Persons” was
launched.
Strategy for
New India @ 75
160
Constraints
• Parliament is yet to pass the Rights of
Transgender Persons Bill, 2016.
• Accurate identication of transgender persons is
a major challenge.
• The implementation of the “Scheme for
Transgender Persons” is suboptimal.
Way Forward
• Provide for identication of transgender persons
in all government and non-government records
by introducing a separate column to include the
third gender.
• Sensitize communities towards the challenges
and needs of transgender persons.
• Create a forum for the active participation of
transgender persons at all levels of governance.
• Put in place institutional mechanisms to
effectively implement programmes for
transgender persons.
• Determine the number of transgender persons
and map their socio-economic status to
design customized policy interventions. This
enumeration and mapping can be carried out by
the MoSJE along with the Ministry of Statistics
and Programme Implementation.
• Mandate the provision of housing and
community services to accommodate at least 50
per cent of transgender persons.
• Formulate and implement a scheme for
establishing residential schools in all districts for
transgender persons.
• Design a scheme for providing skill and
employability training to transgender persons to
integrate them with mainstream society.
• Launch a centrally sponsored scheme to provide
pension to transgender persons above 60 years.
• Ensure
Aadhaar
and Direct Benet Transfer
based implementation and monitoring of social
security programmes.
• Consider creating a fund at the national level
for supporting states that have mapped out
the needs of and designed the necessary policy
interventions for various vulnerable sections
of society including persons with disabilities,
senior citizens and transgender persons in line
with the relevant legislations.
________________________________________
1
Elderly in India, 2016, Ministry of Statistics and Programme Implementation, Government of India.
2
As of 2017, the programme was being implemented in 281 districts across 27 states and 6 union territories.
3
Disabled Persons in India, A Statistical Prole 2016, Ministry of Statistics and Programme Implementation, Government of India.
4
Disabled Persons in India, A Statistical Prole 2016, Ministry of Statistics and Programme Implementation, Government of India.
161
SCs, STs, OBCs, De-Notied Tribes
(DNTs), Nomadic Tribes (NTs) and
Semi-Nomadic Tribes (SNTs)
Objective
• To accelerate the socio-economic development
of SCs, STs, OBCs,
safai karamcharis
as well as
DNTs, NTs and SNTs through focused afrmative
action so as to bring them on par with the
rest of the population as far as key human
development indicators are concerned.
Current Situation
High incidence of poverty and low educational
attainment are the two major challenges faced by
weaker sections in India. Other challenges include
high levels of malnutrition and limited opportunities
for meaningful economic engagement.
Among the weaker sections,
safari karmacharis
constitute one of the most deprived groups. Other
groups that require special attention include the
Particularly Vulnerable Tribal Groups (PVTGs) among
the STs as well as performing artists and those
engaged in begging among the DNTs, NTs and
SNTs.
Research
1
on SCs and STs suggests that historical
inequities among the different segments of India’s
workforce have diminished over the last three
decades. The gaps have narrowed most markedly
for the youngest cohorts in the workforce, especially
in the domain of education. However, there is still
a long way to go before the inequities are bridged
completely.
34. Scheduled Castes (SCs), Scheduled Tribes
(STs), Other Backward Classes (OBCs), Other Tribal
Groups and Minorities
Table 34.1: Incidence of poverty across social groups
Source: Planning Commission
Social Group (%) Rural Urban
2004-05 2009-10 2011-12 2004-05 2009-10 2011-12
SCs 53.53 42.26 31.5 40.56 34.11 21.70
STs 62.28 47.37 45.3 35.52 30.38 24.10
OBCs 39.80 31.9 22.60 30.60 24.30 15.40
Others 41.79 33.8 15.5 25.68 20.09 8.10
Strategy for
New India @ 75
162
• Design schemes that are tailored to and
narrowly focus on the challenges and needs
of specic communities.
• Institutionalize social audits for assessing
the impact of these schemes on the basis of
quantiable benets to targeted households.
• Establish the National Institute for Tribal
Research.
• Earmark funds under all developmental
programmes for DNTs, SNTs and NTs.
• Put in place mechanisms to regularly monitor
the implementation of legislations like the
Panchayat
(Extension to Scheduled Areas) Act
and Forest Rights Act (FRA), 2006.
• Set up a permanent commission for NTs,
DNTs and SNTs along the lines of the
National Commission for SCs and STs.
2. Education
• Establish residential schools in uncovered
blocks/districts with facilities for vocational
training.
• Dene and ensure adherence to quality
parameters for existing and new residential
schools.
• Increase the number of scholarships
provided under the pre-matric, post-matric,
Constraints
• Problems of isolation, exclusion and occupation-
al subjugation are major obstacles to main-
streaming these social groups in the socio-eco-
nomic development of the country.
• Governance including lack of inter-ministerial
convergence and suboptimal targeting of bene-
ciaries is another major issue.
• Resources are distributed thinly among a
large number of schemes, especially under the
scheduled caste sub-plan (SCSP) and tribal sub-
plan (TSP), instead of among a few targeted
schemes.
• There is limited awareness about the schemes
resulting in leakages and denial of benets.
• Mainstreaming these groups has also been
hampered by the inability to incorporate specic
cultural and social requirements of SC/ST groups
while designing interventions.
Way Forward
1. Institutional and programmatic strengthening
• Undertake a baseline survey and
target remote and tribal habitations for
implementation of various development
programmes.
Table 34.2: Literacy rate among social groups
2
Source: Census data
Social Group (%) 1981 1991 2001 2011
SCs 21.38 37.41 54.69 66.07
STs 21.38 37.41 54.69 66.07
Others 43.57 52.21 64.84 72.99
163
National Fellowship and National Overseas
Scholarship schemes for SCs, STs and OBCs.
3. Economic empowerment
• Expand the Stand-Up India scheme to include
uncovered social groups like OBCs, DNTs, NTs
and SNTs.
• Extend venture capital funds and credit
guarantee schemes for covering STs, OBCs,
DNTs, NTs and SNTs.
• Cover a larger number of beneciaries under
various nance and development schemes
with an annual increase of 10 per cent every
year.
• Provide concessional loans for promoting
entrepreneurship among OBCs by doubling
the number of beneciaries covered under
the National Backward Classes Finance &
Development Corporation by 2022-23.
• Encourage indigenous tribal medicine
alongside other systems to create additional
livelihood opportunities.
• Establish contact points with potential
employers along with pre-job training
sessions for youth.
4. Miscellaneous
• Ensure universal coverage of DNT, SNT and
NT populations for BPL and
Aadhaar
cards.
• Prepare a Vulnerability Index and
Vulnerability Intervention Index for PVTGs
based on the methodology suggested by the
National Institute of Rural Development and
Panchayati Raj
, Hyderabad. These indices will
be useful for assessing the socio-economic
disparities between PVTGs and other social
groups and designing policy interventions
accordingly.
• Extend habitat rights to PVTGs within the
FRA framework, as has been done for the
Baiga Tribe of Dindori District, Madhya
Pradesh.
• Provide project-based funding under special
central assistance (SCA) to SCSP and to TSP,
especially in
gram panchayats
/blocks where
the population of SCs/STs is more than 25 per
cent.
• Prioritize vulnerable groups like tribal
children under the National Nutrition Mission
through tag-tracking and additional home
visits for underweight children conducted by
frontline workers.
• Empower marginalized communities by
promoting community-owned radio stations.
• Promote habitations along the lines of
Samasthapuram in Tamil Nadu where people
belonging to all communities live together.
MINORITIES
Objective
• To bridge the gap between minority
communities and the rest of the population
with respect to various socio-economic and
human development indicators through
afrmative action.
Current Situation
As per Census 2011, of the total population of 121
crore, Hindus constitute 79.8 per cent, Muslims 14.2
per cent, Christians 2.3 per cent, Sikhs 1.7 per cent,
Buddhists 0.7 per cent and Jains 0.4 per cent. While
improvements have been made on several fronts,
religious minorities lag behind on certain indicators
pertaining to educational attainment, gender
equality and workforce participation.
Strategy for
New India @ 75
164
Table 34.3: Literacy rate among minority communities
Figure 34.1: Workforce participation rate
Source: Census 2001 and Census 2011
Source: Census 2011
40%
41%
43%
36%
36%
33%
0% 10% 20% 30% 40% 50%
National
Hindus
Buddhists
Sikhs
Jains
Muslims
Workforce Participation Rate of
Various Religious Groups (%)
Community (%) Census 2011 Census 2001
Males Females Total Males Females Total
National 80.87 64.63 72.98 75.3 53.7 64.8
Hindus 81.69 64.34 73.27 76.2 53.2 65.1
Muslims 74.73 62.03 68.53 67.6 50.1 59.1
Christians 87.69 81.40 84.53 84.4 76.2 80.3
Sikhs 80.02 70.30 75.39 75.2 63.1 69.4
Buddhist 88.31 74.04 81.28 83.1 61.7 72.7
Jains 96.78 92.91 94.88 - - -
165
Figure 34.2: Out of school children by religious group
Source: Sarva Siksha Abhiyan
3
Disaggregated data from a survey
4
highlighted
that the highest proportion of out of
schoolchildren in the country belong to Muslim
communities (4.43 per cent), followed by Hindus
(2.73 per cent), Christians (1.52 per cent) and
others (1.26 per cent).
Data from the 68th Round of the National Sample
Survey revealed that the proportion of households
in urban India with casual labour and self-
employment as the dominant income source was
the highest among Muslims at 15 per cent and 50
per cent respectively. The Workforce Participation
Rate among Muslims, Sikhs and Jains was lower
than the national average according to Census
2011.
2.73
2.97
1.95
4.43
4.34
4.58
1.52
1.77
1.06
1.26
1.33
1.06
2.97
3.13
2.54
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
All Rural Urban
Out of school children (%)
Hindus
Muslims
Christians
Others
All
Constraints
• Data on development indicators for minorities is
not generated at regular intervals.
• Some minority communities are also included
under SCs, STs and OBCs, which could result in
the duplication of schemes for the same set of
beneciaries.
• Awareness levels and demand for programmes
being implemented for the benet of minorities
are limited.
Way Forward
1. Institutional restructuring
• Vest the primary responsibility for a number
of schemes currently being implemented by
Strategy for
New India @ 75
166
the Ministry of Minority Affairs (MoMA) with
the relevant line ministries. MoMA should be
involved with the nalization of physical and
nancial targets by the line ministries.
• Increase the emphasis of the MoMA on
data collection and analysis, identifying gap
areas, online monitoring of the PM’s 15-Point
Programme, evaluating the impact of various
schemes and popularizing schemes in local
languages using social media.
2. Education
• Enhance pre-matric scholarships, post-matric
scholarships, merit-cum-means scholarships,
Maulana Azad
National Fellowships and
National Overseas Scholarships with a 15 per
cent increase annually from 2019-20.
• Increase the number of scholarships for girls
from minority communities by 10 per cent every
year.
• Ensure that girls who pass out from
Kasturba
Gandhi Balika Vidyalayas
can continue their
education after completing Class 8.
• Provide access to public transport in the form of
buses and cycles or vouchers for meeting private
transport costs to raise enrolment rates among
girls from vulnerable communities.
• Train at least 100,000 minority women under the
Nai Roshni
scheme every year.
3. Economic empowerment
• Identify the poorest among the minority
communities through the Socio-Economic Caste
Census data for proper targeting of various
schemes.
• By 2022-23, provide integrated education and
livelihood programmes to 100,000 beneciaries
under the
Nai Manzil
programme.
• Train at least 350,000 beneciaries during the
5-year period under
Seekho Aur Kamao
.
• Achieve a 15 per cent increase per annum in
loans to vulnerable sections through the use of
alternative channels like regional rural banks.
• Put out job advertisements in Urdu and local
language newspapers as well as through other
locally appropriate channels.
________________________________________
1
http://www.ncaer.org/uploads/photo-gallery/les/1405592467IPF%202014%20Bhattacharjee-Hnatkoyska-lahiri%20Conference.pdf.
Accessed April 29, 2018.
2
Other Backward Classes (OBCs) made its way into the lexicon of India’s social justice movement in the year 1990. Hence, comparable
Census data is not available for OBCs for all the Census years.
3
http://ssa.nic.in/pabminutes-documents/NS.pdf. Accessed April 24, 2018.
4
http://ssa.nic.in/pabminutes-documents/NS.pdf. Accessed April 24, 2018.
GOVERNANCE
169
Objective
• Achieve balanced development in India
by uplifting 115 districts, currently below
the national average in the areas of health
and nutrition, education, agriculture and
water resources, nancial inclusion and skill
development, and basic infrastructure.
Current Situation
The Aspirational Districts Programme (ADP) was
launched on January 5, 2018, by the Honourable
Prime Minister. Under phase-1 of ADP, 115 districts
were identied based on the level of human
development, physical infrastructure, threat of
left wing extremism (LWE) and the views of state
governments. Over 15 per cent of India’s population
lives in these districts.
A list of 49 target indicators has been developed by
NITI Aayog. These will be regularly monitored for
promoting improvements in health and nutrition,
education, agriculture and water resources,
nancial inclusion and skill development, and basic
infrastructure.
In April 2018, NITI Aayog issued a ranking of these
districts according to baseline data collated from
secondary sources on these selected indicators.
According to this, the top ve districts are
Vizianagaram (Andhra Pradesh), Rajnandgaon
(Chhattisgarh), Osmanabad (Maharashtra),
Cuddapah (Andhra Pradesh), and Ramanathapuram
(Tamil Nadu) with a score ranging from 46.78 per
cent to 48.13 per cent.
The bottom ve districts are Shrawasti (Uttar
Pradesh), Kiphire (Nagaland), Singrauli (Madhya
Pradesh), Asifabad (Telangana) and Mewat
(Haryana) with a score ranging from 26.02 per cent
to 28.13 per cent.
Despite economic progress in the country, if
these places have remained underdeveloped, it
is because they suffer from a host of contributing
factors. Relatively poorer endowment of physical
resources, lack of infrastructure, poor social capital,
low standards of health, nutrition, education and
skill, poor governance and above all, inhabitants
demotivated due to years of poverty and deprivation
can be cited as major contributory factors.
Constraints
The constraints impeding the development of these
districts are institutional; aggregating assistance
from different sources and applying the principle
of convergence indicates that paucity of funds is
unlikely to be a major issue.
35. Balanced Regional Development:
Transforming Aspirational Districts
Strategy for
New India @ 75
170
• Governance challenges:
o Governance inadequacy hampers the
effective implementation of government
schemes.
o The institutional framework has been
fragmented because of the multiplicity of
implementing agencies and schemes.
o There is no accountability on the part
of either the government or district
administrations.
• Non-availability of periodical data makes
it difcult to track progress and implement
evidence-based policymaking.
• There is lack of social awareness and
community participation in development
programmes.
• There is lack of competitiveness among districts
to improve developmental performance.
Way Forward
The ADP aims to address governance issues by
using a combination of approaches: lifting levels
of aspirations through a vision and district plan,
adequate institutional arrangements, convergence
in all stakeholders’ efforts and above all, ranking-
based public competition among the districts by
setting up a real-time monitoring mechanism.
1. Create a positive narrative of development
by making development a mass movement
Referring to these districts as ‘aspirational’ rather
than ‘backward’ highlights the programme’s
recognition that people are the most valuable
resource to improve a district’s performance.
Changes in people’s mind-sets and attitudes are
critical to achieve progress.
As a strategy, district ofcials will draw up a
vision and action plan for their districts spanning
the period 2018-19 to 2022-23. Ofcials
will engage the public in formulating these
plans. Each action plan should be based on a
SWOT analysis. To facilitate the preparation
of such plans, NITI Aayog has already shared
a broad common framework with all district
administrations.
Setting off a virtuous cycle of growth in
aspirational districts requires that people from
all walks of life – especially those who have
a track record of effecting change despite
existing challenges – come together. The
scheme’s design encourages states and district
administrations to give a lead role to such
champions of change to turn this initiative into a
mass movement.
2. Use data to inform decision-making and spur
competition among districts
Composite Index and Data
: Across the selected
dimensions, NITI Aayog has identied 49 key
performance indicators (KPIs) with 81 data
points. Extensive consultation with central
ministries and knowledge partners informed the
selection of these KPIs. An online dashboard
allows for the tracking and display of district-
level data on a real-time basis.
A key policy question is how to prioritize among
different indicators across sectors. The ADP
assigns different weights to the indicators,
informed by a policy focus on social sectors.
Health and nutrition, and education have been
given the highest weightage and cumulatively,
they account for 21 of the 49 indicators. Table
35.1 indicates the weights assigned to each of
the core dimensions.
171
Table 35.1: Core dimensions of ADP and their weightage
Source: NITI Aayog
Dimension Weightage Number of Indicators
Health and Nutrition 30% 13
Education 30% 8
Agriculture and Water Resources 20% 10
Financial Inclusion and Skill Development 10% 11
Basic Infrastructure 10% 07
Rankings
: Ranking districts based on
performance relative to their baseline highlights
the progress made by a district. Making these
rankings and the underlying data available in
the public domain will help boost competition
between districts.
3. Converge initiatives across all levels of
government
The ADP aims to ensure convergence between
different government schemes while also
seeking complementarity between public
initiatives and private efforts of households (for
example, choosing to attend a course on skill
development). To achieve this, the action plan
prepared by the district collectors of aspirational
districts will identify the thrust activity,
map existing schemes and their respective
implementation agencies and set targets for
rapid improvement.
Figure 35.1 highlights that for every thrust
Figure 35.1: Illustration of how the ADP converges stakeholders’ efforts in the
prevention of stunting
Thrust Activity (Preventing stunting)
Household
Income
Scheme-1
National
Health
Mission
(Asha
Workers)
Scheme-II
ICDS
Anganwadi
Scheme-
III
Mid Day
Meal
Schools
Scheme-IV
Subsidised
ration
through PDS
Fair Price
shop
Scheme-V
State govt.
Initiatives
Scheme-VI
Programmes
for sanitation
& drinking
water
Source: Adapted from Aruna Sharma: Mainstreaming of Resource Convergence in Policymaking, Programme Design and Execution.
(December 2013)
Strategy for
New India @ 75
172
activity identied, such as the prevention
of stunting, there would be many schemes
addressing the issue, which in turn would have
different implementing agencies. The ADP will
bring together these efforts.
4. Promote federalism and put in place
institutional mechanisms to ensure
teamwork between the central, state and
district administration
Harnessing and creating synergies among the
efforts of different stakeholders is the backbone
of the ADP. While states are the main drivers
and district magistrates/collectors are the
fulcrum of the programme, a major innovation
here is the emphasis on team formation. Senior
Government of India ofcials of the rank of
Joint Secretary/Additional Secretary have been
appointed as ‘guardians’ (‘
prabharis
’) for a
district. Their role is to act as a bridge between
the central and state governments.
Set up Empowered Committees of Secretaries
of Government of India to supervise and
troubleshoot. At the centre, committees have
been constituted including the Secretaries of key
ministries/departments that are implementing
schemes in the social sector. Their mandate is to
ne-tune existing programmes and improve their
impact.
5. Partner with expert organizations with
demonstrated technical competence
While data-based objective ranking and
competition among districts are major elements
of the ADP’s strategy, another core component
is bringing in technical expertise through public
private partnerships. The approach here is to
involve all, including philanthropies, the private
sector under the Corporate Social Responsibility
(CSR) framework and civil societies, in
implementing the ADP.
173
Objectives
The North-East Region (NER) should:
• Have adequate road, rail and air connectivity,
waterways, internet connectivity and nancial
inclusion. This will form the platform upon
which suitable interventions for all sectors
where the NER has a comparative advantage
(for e.g., tourism, hydropower generation,
handicrafts, organic agriculture, etc.) can be
effectively implemented.
• By 2022-23, the region should also be
developed for enhanced trade, particularly for
the export of products made in the NER, to the
Association of Southeast Asian Nations (ASEAN)
region and other neighbouring countries
(Bangladesh, Bhutan and Nepal).
Current Situation
The NER consists of eight states, namely Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim and Tripura. The region accounts
for 3.78 per cent of India’s population and covers
7.98 per cent of its total geographical area. Its
contribution to national GDP is 2.5 per cent.
1
Figure
36.1 illustrates the per capita net state domestic
36. The North-East Region
1,23,339
60,526
55,603
71,318
1,14,524
83,621
2,33,954
80,027
0
50,000
1,00,000
1,50,000
2,00,000
2,50,000
Arunachal
Pradesh
Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura
INR
All India Average: 94,732
Figure 36.1: Per capita NSDP for north-east states, 2015-16
Source: MoSPI
Strategy for
New India @ 75
174
21,919
15,661
16,299
20,775
30,357
26,129
26,215
25,984
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Arunachal
Pradesh
Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura
INR
All India Average: 25,944
Figure 36.2: Per capita NSDP for north-east states, 2004-05
Source: NER Vision 2020
2
product (NSDP) for the year 2015-16 (base year
2011-12) for the North-Eastern states.
The gure clearly illustrates the disparity in
development within the region. While ve out of
the eight states have a per capita income below the
national average, Sikkim enjoys a per capita income
level that is 2.5 times the national average.
A comparison of the per capita incomes in these
states in 2015-16 and 2004-05 (given in Figure
36.2) indicates that the ranking within the NER has
also changed over the years.
Arunachal Pradesh and Sikkim have shown the
most signicant improvement in per capita incomes.
Per capita income in Arunachal Pradesh, which
was below the national average in 2004-05, rose
to 1.3 times the national average in 2015-16.
Sikkim’s per capita income, which was on par with
the national average, increased to 2.5 times the
national average in 2015-16. States like Nagaland
and Tripura, which were on par with the national
average in 2004-05, have fallen behind. The
heterogeneity among the NE states is noteworthy
and calls for a state specic development approach.
The North-East states have performed well in different
aspects of human development. For e.g. according to
the Sikkim Human Development Report 2014,
3
Sikkim
increased its social sector spending from 23 per cent of
total expenditure in 2001 to 37 per cent in 2012-13.
The female labour force participation rate in Sikkim is
40 per cent compared to the national average of 26
per cent. Furthermore, according to the National Family
Health Survey - 4,
4
all states in the NER except Assam
have a lower mortality rate for under-ves than the
national average. Lastly, Sikkim was recently declared
India’s rst fully organic state.
175
This area is strategically important for India both for its
geographical location and the resources found there.
Some of the key strengths of the NER are given below:
• NER shares about 5,437 km of international
boundaries with Bangladesh, Bhutan, China,
Myanmar and Nepal.
5
• Total coal reserves in the NER is estimated at
1,597 million tonnes.
6
These were exported in
the past.
• Limestone deposits are found extensively
throughout the NER.
• Petroleum, natural gas and uranium are other
natural resources to be found in the NER.
• According to the India State of Forest Report
2017,
7
some of the North-Eastern states have
the highest forest covers in the country. The total
forest cover in the region is 1,71,306 sq km, which
is 65.3 per cent of its geographical area, which is
thrice the national average of 21.5 per cent.
• Hydropower potential for the NER has been
estimated at 58,971 MW,
8
which is 40 per cent
of India’s total hydropower potential. However,
only 2.1 per cent of this vast potential of clean
energy has been utilized.
Despite the region’s strengths and the government’s
focus on developing the NER, a lot of challenges
remain. These are highlighted below.
Constraints
While the NER has all the ingredients needed
to become prosperous, it could not achieve the
expected level of economic growth mainly due to
inadequate road, rail and air connectivity. A lot of
its resources remain untapped. For e.g.
• Despite abundant rainfall, the irrigation
coverage in this region is less than the national
average of 46.35 per cent.
• The NER’s natural scenic beauty and distinct
ethnic heritage offers great attractions for
mountaineering, trekking and other tourist
activities. However, the tourism industry
remains underdeveloped.
Figure 36.3: Timeline of government initiatives for the development of
north-east region
Strategy for
New India @ 75
176
The major constraints hampering economic growth
in the NER are:
• Inadequate infrastructure in terms of limited air,
rail and road connectivity.
• Under-utilization of available natural resources
• Safety and security related issues.
• Difculties in transfer of land on lease to
entrepreneurs.
Way Forward
• A targeted strategy needs to be devised, in
consultation with representatives from all eight
NE states, to disseminate information on the
various central government schemes that are
already in place for the development of the
NER. All central ministries and departments
should consider sharing their targets and
vision for the NER and spell out modalities for
spending the stipulated 10 per cent of their
budget for the NER. The Ministry of Finance
should formally acknowledge the availability of
funds under the NLCPR.
• Each state within the NER may be encouraged
to draw up their development blueprint in
consultation with the NITI Aayog and the
North-East Council (NEC).
• As noted earlier in this chapter, different states
in the NER have achieved success in different
aspects of human development. The Ministry
of Development of North-Eastern Region
(MDoNER) should document such best practices
and disseminate its ndings within the region
so that the learning can be implemented
suitably in other states.
• The NER Vision 2020
9
noted,
“responsive
governance and planning from below require
signicant augmentation of capacity”
. It is
recommended that mechanisms like project
management units be considered to augment
the capacities of state governments.
• To address the issue of inadequate connectivity
in the NER, the following measures need to be
taken:
o As a general point, transit treaties for the
NER and its neighbouring countries need
to be put in place. India could consider
initiating a regional multi-modal transit
agreement between the NER and the four
neighbouring countries.
o It is necessary to monitor closely on-going
transport projects with focus on projects
that boost inter-regional connectivity and
help transform the region into a major
trade hub with South East Asia. It is recom-
mended that a high-level committee be set
up in 2018 (possibly as a sub-committee
under the “NITI Forum for North-East”) to
focus on expediting such projects, includ-
ing the Kaladan Multi-Modal Transit Trans-
port Project, the India-Myanmar-Thailand
Trilateral Highway, the 5-km road stretch
between the border city of Zokhawthar in
Mizoram and Rih in Myanmar and the rail
link from Imphal to Moreh and further from
Moreh to Kalay (in Myanmar)
o One of the projects that will boost
connectivity within India and signicantly
benet the NER is the Agartala-Akhaura rail
project. This project, 15 km in length, has
already been sanctioned and will reduce
the distance between Kolkata and Agartala
by 1,200 km.
10
The Ministry of Railways
needs to fast track the project.
• UDAN III may be launched. Its international
component could connect Guwahati to ASEAN
capitals.
177
o The viability gap funding (VGF) required for
UDAN III could come from the Government
of Assam or could be met from the NLCPR.
It is envisaged that VGF requirements
would not be large and demand will rise in
response to improved air connectivity.
• The Government of India and the NER should
work together to create an environment
to attract more private investment into
the region. On March 21, 2018, the Union
Cabinet approved the North-East Industrial
Development Scheme (NEIDS) with a project
outlay of INR 3,000 crore up to March
2020, to incentivize new industrial units in
manufacturing and services sector in the
region.
11
Indicators of development in the NER
should be monitored closely and taken up in
mission mode.
• A few other measures that could also be
considered over the next few years are:
o Set up industrial estates/parks in the
region.
o Focus on sectors such as organic
agriculture, tourism, renewable energy,
etc, in which the NER has competitive
advantage.
o Accelerate skill development as suitable for
the region.
• One of the most pressing issues hampering
the progress of hydropower projects in the
region is rehabilitation and resettlement (R&R).
Attractive R&R packages should be devised for
hydropower projects in the region.
• NER is endowed with natural beauty, rich
ora and fauna and a unique culture. Tourism,
particularly eco-tourism and adventure tourism,
should be promoted by identifying suitable sites
and creating supporting infrastructure at these
sites through the PPP mode.
• Water management is a major issue in the NER.
Early completion of ongoing irrigation projects,
particularly Borolia, Dhansiri and Champavati
in Assam, and Thoubal and Dolaithabi Barrage
in Manipur under the Accelerated Irrigation
Benets Programme, should be accorded high
priority. It is expected that the establishment of
the North East Water Management Authority
will help address the issue.
________________________________________
1
As of 2015-16, GSDP data for some North-East states is not available beyond 2015-16 with the Central Statistics Ofce.
2
http://www.mdoner.gov.in/sites/default/les/silo2_content/ner_vision/Vision_2020.pdf. Accessed May 02, 2018.
3
http://www.sikkim.gov.in/stateportal/Link/Sikkim%20Human%20Developent%20Report%202014.pdf. Accessed May 02, 2018.
4
http://rchiips.org/NFHS/NFHS-4Reports/India.pdf. Accessed May 03, 2018.
5
http://planningcommission.nic.in/sectors/NTDPC/voulme3_p2/transport_dev_v3_p2.pdf. Accessed May 05, 2018.
6
https://coal.nic.in/content/coal-reserves. Accessed February 27, 2018.
7
http://fsi.nic.in/isfr2017/isfr-forest-cover-2017.pdf. Accessed May 02, 2018.
8
The North-Eastern Electric Power Corporation Limited (NEEPCO) http://neepco.co.in/neepco/#. Accessed February 03, 2018.
9
http://www.mdoner.gov.in/sites/default/les/silo2_content/ner_vision/Vision_2020.pdf. Accessed May 02, 2018.
10
http://www.unescap.org/sites/default/les/5.2_Manoj_Singh_NITI_Aayog.pdf. Accessed May 04, 2018.
11
http://pib.nic.in/newsite/PrintRelease.aspx?relid=177822. Accessed May 02, 2018.
Strategy for
New India @ 75
178
Objective
• To ensure the safety and security of citizens and
ensure access to effective legal systems and
speedy delivery of justice.
Current Situation
Legal and judicial reforms are urgently needed to
address the massive pendency and capacity issues
in Indian courts, which impede access to justice.
Several archaic and defunct laws have already
been repealed and many others are in the process
of being weeded out. The recently announced
umbrella scheme on “Modernisation of Police
Forces” to strengthen law and order and modernize
the police is a welcome stimulus. A part of police
reform is intrinsically linked to legal/judicial reform,
which would result in efcient criminal justice
dispensation.
Constraints
1. The major challenge facing the judiciary is the
huge backlog of over 2.7 crore pending cases.
There are also signicant capacity issues.
2. Ease of doing business in India is severely
constrained by the inability to enforce contracts
or laws, lengthy and costly litigation and
arbitration processes, and archaic legislations.
Although we have the Arbitration Law of
1996, which is in tune with global principles,
it has not yielded desired results in terms of
lessening the pressure on courts. Nor have the
alternative dispute resolution mechanisms been
utilized adequately. The World Bank “Doing
Business Report” 2018 ranks India at 164 in
‘Enforcing Contracts’; though an improvement
of 8 positions, it is clearly not an acceptable
situation.
3. Police reform until recently had been stuck
due to various reasons. Police/law and order
is a state subject, falling under List II of the
Seventh Schedule of the Constitution of India.
In a federal set up like ours, this makes policy
reform a rather sticky issue. After accounting
for vacant positions, there are only 137 police
personnel per 100,000 citizens (17.3 lakh in
all). The UN recommends 222 police personnel
per 100,000 citizens.
Way Forward
A. Legal reforms
1. Create a repository of all existing central and
state laws, rules and regulations
• The centre and state(s) need to create
repositories of laws, rules, regulations and
government orders.
• Alternatively, a three-tier repository system
can be considered in line with the system of
governance enshrined in the Constitution.
37. Legal, Judicial and Police
Reforms
179
2. Repeal redundant laws and introduce a new
initiative to remove restrictive clauses in existing
laws
• For the rst time since independence, as many as
1,420 redundant laws have been repealed over
the past four years. An identical process should
be followed by all states.
• A new programme to repeal unnecessarily
restrictive clauses and procedures in existing
laws should be started. It will enhance both
ease of living and ease of doing business
indices.
3. Consider the following changes in criminal
justice and procedural laws
• Introduce changes to procedural laws in line
with the principles and thinking behind the
Commercial Division Bill.
• Change from the present litigant driven outlook
to one led by an effective judiciary in line with
global practice. To begin with, a review of the
Code of Civil Procedure (CPC), 1908, may be
considered.
o The Commercial Court, Commercial
Division and Commercial Appellate
Division of High Courts Act, 2015, needs
to be amended to provide for pre-
institution mediation and settlement by
using the services of agencies created
under the Legal Services Authorities Act.
The amendment can be on the lines of
the provisions of Section 89 of the CPC,
under which Courts can refer disputes to
one of the alternate dispute resolution
mechanisms after a suit is led. It is also
necessary to fast track the consequential
amendments in the respective provisions
of the CPC once the Act has been
amended.
• Reduce the criminalization of violations, and
move towards compounding of minor offences:
o Sixty eight per cent of under-trials in jail are
awaiting trial. The under-trial waiting time
needs to be drastically reduced. It is also
necessary to move towards community
service and other non-imprisonment based
punishments.
o It is necessary to re-examine the procedure
for initiating criminal proceedings, arrest
and bail. Summary proceedings and plea
bargaining should be reorganized and
implemented so that criminal cases can be
settled in a time bound manner.
o Reform forensics and ballistics testing by
outsourcing to accredited laboratories.
4. Create a law-abiding society
• It is necessary to inculcate respect for the
rule of law among citizens. The process
should start at the school level and can be
effected by mandatorily introducing innovative
programmes with well thought out content and
activities.
• Introduce incentive and sanction-based models
of motivation to ensure that citizens abide
by the law. The following measures may be
considered:
o Prohibitive penalties should be imposed
to check trafc violations, civic violations
including littering in public, rst time petty
offenders, etc.
o Use of advanced technology is an essential
pre-requisite to check these violations
of the law; person-to-person direct
interface should be minimized to eliminate
corruption.
Strategy for
New India @ 75
180
o If there is a resource constraint, then
additional resources may be allocated for
this critical purpose.
5. A time line for implementation of necessary
amendments should be stipulated. Such
amendments should also have stipulated
and binding time limits within which reports,
such as ballistics and forensic reports, need to
be submitted. Review and sunset clauses in
legislations may also be considered.
6. Continuing legal education in selected areas
should be made mandatory for lawyers and
judges and rules of professional conduct and
ethics need to be drawn up and implemented.
7. Greater sensitivity on the part of government
ofcials to citizens’ needs can help reduce the
number of litigations/disputes. This will require
an attitudinal reorientation among government
ofcials through sensitization programmes.
Future prospects of employees can be made
contingent on their successfully completing such
programmes.
8. New laws should be drafted in simple, plain
language.
B. Judicial reforms
1. A study carried out by the Ministry of Finance
found that it takes, on an average, almost
20 years for a property related dispute to be
resolved, and that it would take 324 years just
to clear the present backlog at the current rate
of disposal. The huge backlog of pending cases
is a critical logistical and efciency issue. To
tackle the issue, the following capacity building
and sustainable solutions should be considered
in consultation with the judiciary:
• Shift certain sections of the workload out of
the regular court system to commercial courts,
the commercial division and the commercial
appellate division of High Courts for commercial
disputes and the Criminal Judicial Magistrate
for criminal cases at least in metropolitan areas
to decongest courts.
• A mechanism may be considered whereby
litigants in a commercial dispute must rst be
made to exhaust the remedy of pre-institution
mediation and settlement. However, it should
be ensured that such cases do not create one
more stratum in litigation.
• The Arbitration and Conciliation Act,
1996, should be amended to make India a
robust centre for institutional arbitration,
both domestic and international. A new
autonomous body, viz., the Arbitration Council
of India, should be set up to grade arbitral
institutions and accredit arbitrators to make
the arbitration process cost effective and
speedy, and to pre-empt the need for court
intervention.
• Merge and rationalize tribunals to enhance
efciency. Appointments to tribunals must be
streamlined either through a specialized agency
or under the Department of Personnel and
Training (DoPT).
2. Judicial decisions need to take account of their
economic and social impact, especially in cases
pertaining to contract, labour, tax, corporate
and constitutional issues as observed by the
Supreme Court in a recent judicial decision.
3. An all-India judicial services examination
on a ranking basis can be considered to
maintain high standards in the judiciary. The
selection process may be entrusted to the
Union Public Service Commission (UPSC) for a
cadre of lower judiciary judges (rst induction
level), Indian Legal Service (both centre and
181
states), prosecutors, legal advisors, and legal
draftsmen. This will attract young and bright
law graduates and help build a new cadre that
can enhance accountability in the governance
system.
4. Continuing training may be introduced to ensure
development of skills, ethics, knowledge and
awareness of international best practices.
5. Multi-faceted training faculty for judicial
academies including reputed lawyers, successful
NGOs and others, for holistic exposure may be
considered.
6. Training modules should be live streamed
on an e-platform to make information easily
accessible, and widely disseminated.
7. Consider a performance index for judges and
a separate state wise index for ease of getting
justice.
8. Introduce an administrative cadre in the judicial
system to streamline processes. To maintain
judicial independence, the cadre should report
to the Chief Justice in each High Court.
9. Prioritize court process automation and ICT
enablement for electronic court and case
management, including electronic management
of court schedules and migration of all courts
to the unied national court application
software.
10. Facilitate the availability and usage of video-
conferencing facilities to assist in speedy access
to justice and to minimize logistical issues. At
present, even the available video conferencing
facilities are not utilized optimally.
C. Police reforms
With scal support to the states now being looked
after under the umbrella scheme, the following
reforms maybe considered:
1. The Model Police Act of 2015 can serve as the
basis for legislative reform as it modernizes
the mandate of the police, puts in place a
governance mechanism that insulates the
police from political interference and provides
for the measurement and tracking of police
performance.
2. A task force may be created under the Ministry
of Home Affairs (MHA) to skill personnel
and identify non-core functions that can be
outsourced to save on staff.
3. States should be encouraged to ensure greater
representation of women in the police force. The
MHA should come up with a policy to encourage
greater participation of women to achieve a
target share of 30 per cent women among new
recruits.
4. Launch a common nation-wide emergency
contact number to attend to emergency security
needs of citizens.
5. Integrate the Lokpal and Prevention of
Corruption Acts into police reforms to enhance
accountability.
6. Transfers/postings of police personnel should
be made more transparent and the involvement
of police in prosecution needs to be looked at
more closely.
7. It is important to consider introduction of
remodelled training modules, refresher courses
and continuing education for police personnel
including live-streaming of training modules
on e-platforms. A concept of certication of
security personnel with identied skill sets may
be considered with linkage to promotion and
deployment.
8. Introduce reform of the First Information Report
(FIR) lodging mechanism, including introducing
ling e-FIRs for minor offences. Besides, police
Strategy for
New India @ 75
182
challans, investigation reports, etc., should be
made available through the online portal of
each police station.
9. A separate cadre for exclusively looking into
cyber-crimes, cyber threats and fraud needs to
be developed.
10. A panel of experts in psychology, negotiation,
language prociency and training may be put
together.
11. A technology centre may be considered
for benchmarking and identifying suitable
technologies for the police under BPR&D in
collaboration with IITs. A separate National
Cyber Security Division may be considered
to support and coordinate initiatives of state
governments in handling cyber-crimes. A
separate dashboard for interface with citizens
for reporting and redressal of cyber crimes may
be considered. Besides, big data analytics may
be utilized in a big way. The Crime and Criminal
Tracking Network and Systems project may be
completed along with the launch of Phase 2 for
linking of crime, prosecution, court and prison
databases.
183
Objective
• To put in place a reformed system of recruitment,
training and performance evaluation of the civil
service to ensure more effective and efcient
delivery of public services to achieve the devel-
opment goals envisaged in New India 2022.
Current Situation
The Second Administrative Reforms Commission
(ARC) was constituted in 2005 and in 2009, the
Commission submitted around 15 reports on var-
ious aspects of governance, making 1514 recom-
mendations. Of these, 1183 have been accepted by
the central government. Decisions on the accepted
recommendations have been sent to the relevant
central ministries and state/union territories, with
a request to set up an institutional mechanism to
monitor their implementation. However, a bulk
of the recommendations have not yet been im-
plemented. In the meantime, the demands on the
civil service continue to grow with the ambitious
programmes of the government.
Reforms in civil services are a continuous process
and several initiatives have been taken in recent
years by the present government. These include,
the introduction of a multi-stakeholder feedback
(MSF) performance evaluation, dispensing with
interviews for lower level positions, introduction
of online mechanisms for appraisals and ling of
various returns by employees, implementation of
e-ofce, and strengthening training and merit-based
postings. About 18 states and 7 union territories
have also discontinued the practice of interview for
recruitments to lower level posts.
Constraints
Several constraints impede the development of a
highly efcient, transparent and accountable civil
service.
1. There is a mismatch between positions and skill
sets. Recruitment is not competency specic
and often, the right person is not placed in the
right job.
2. A related issue is the opposition to lateral
entry, which hinders the development process.
As the complexity of the economy increases,
policymaking becomes a specialized activity.
This creates an inherent need for the lateral
entry of professionals into government service.
3. There is a need to forecast stafng needs in
the civil services. This could ideally be done on
a ve-year rolling basis. There are instances
of lack of employment opportunities in some
areas, while there are many vacancies in others.
4. Attracting talent and nurturing excellence,
ensuring transparency and accountability
along with participatory and representative
decision-making are some issues that need to
be addressed..
WAY FORWARD
The strategy for 2022-23 should be centred
on the implementation of the Second ARC
recommendations that have been accepted by
38. Civil Services Reforms
Strategy for
New India @ 75
184
the government. Broadly, the constraints can be
tackled through interventions in the following
areas: recruitment, training and evaluation, and
governance.
Recruitment
• Improve the teeth to tail ratio: Promote an
ofcer-oriented culture and focus on expanding
the numbers of ofcers.
• Objectivity in the recruitment and placement
process: Widely disseminate job descriptions
and selection criterion and eliminate elements
of arbitrariness.
• Reduce the number of civil services: The
existing 60 plus separate civil services at the
central and state level needs to be reduced
through rationalization and harmonization
of services. Recruits should be placed in a
central talent pool, which would then allocate
candidates by matching their competencies and
the job description of the post. Concomitantly,
the number of exams for civil services should
ideally be brought down to one with all India
ranking. States may also be encouraged to use
this pool for recruitments.
• Encourage lateral entry: Inducting specialists at
higher levels of government will provide much
needed expertise.
• Nurture specialization: The key to reform in the
civil services is encouraging ofcers to cultivate
specializations based on their education
and skills early on in their careers. Wherever
possible, longer tenure postings need to be
made based on the ofcers’ expertise. However,
it is also necessary to ensure cross-sector
mobility for civil servants from areas where
they have become surplus to areas of emerging
importance.
• Mentorship: Upon induction, young ofcers
should be assigned mentors, preferably with an
ofcer having a similar functional specialization
or with high-quality NGOs for values and soft-
skill mentorship.
• Information Technology (IT): Use of IT needs
to be signicantly upscaled for planning,
forecasting stafng requirements and
recruitments.
• Hiring policies: The upper age limit for the civil
services should be brought down to 27 years
for the general category in a phased manner by
2022-23. Service conditions for employees of
autonomous bodies need to be regulated and
harmonized.
• Strengthen municipal corporation cadres: The
number of staff at municipal corporations
should be increased. Measures that monitor
performance along the same lines as proposed
for other services, including through online
appraisals and biometric attendance, need to
be introduced.
• Outsource service delivery: Efforts need to be
made to outsource service delivery to reduce
dependence on the administrative machinery.
Research is needed to identify possible services
to be outsourced; various PPP models should
be explored to determine the best possible
mode of outsourcing.
Training
• Reorient training: Alter the current system of
training to meet job-outcome oriented goals.
With economic gravity shifting towards cities,
training should be reoriented to focus relatively
more on managing urban areas.
• Introduce mid-career training modules for all
services.
185
• Strengthen and leverage online avenues for
training
o Introduce pre and post-training matching of
skills to determine postings.
o Digitize human resource records across states.
o Develop a competency matrix to monitor
ongoing skill acquisition and help match
requirements with resources in real time.
o Institute an e-learning platform to conduct
training modules.
• Mid-career exams/skill assessment might be
undertaken to evaluate and decide on future
postings.
• Prepare handbooks for skill orientation to
improve competency.
• Introduce the ‘living university’ concept of value
creation based on outcomes and good ideals.
• Develop ongoing training and immersion
modules on a district-by-district basis.
Evaluation
• Consider replacing annual condential reports
(ACRs) with multi stake holder feedback
(MSF): ACRs could be replaced with MSF. It
is important for MSF to be online to retain
transparency and accountability.
• Institute goal setting and tracking: There is an
inherent need to set key responsibility/focus
areas and progressively reduce discretionary
aspects to evaluate civil servants. Institute the
online Smart Performance Appraisal Report
Recording Online Window (SPARROW) template
in all central and state cadres.
• Incentivization: Review existing schemes
and introduce new schemes of incentives for
extraordinary performance.
• Compulsory retirement for underperforming
ofcers: Develop benchmarks to assess the
performance of ofcers and compulsorily retire
those deemed unable to meet the benchmarks.
Governance
• Citizen-centric framework: An inclusive policy
framework with citizens at the centre needs
to be developed. Apart from improving public
access to information through the use of
Information and Communication Technology
(ICT) and the Right to Information Act (RTI), the
RTI’s management information system portal
needs to be expanded to cover more public
authorities, especially subordinate ofces of
ministries and public sector units.
• Institutionalize system for effective monitoring
of suo moto disclosures: To bring further
transparency to public affairs and adopt
safeguards to promote accountability, effective
monitoring of suo moto disclosures is essential.
• Enhance capability of public authorities: The
capabilities and knowledge base of central
public information ofcers (CPIOs), appellate
authorities (AAs) and information commissions
need to be upgraded on a continuous basis to
enable them to perform their assigned roles
without external inuence.
• Protection of civil servants: Introduce an
appropriate system of checks and balances,
including for the process of suspension, to
ensure that ofcers are given their due process
and are not vulnerable to vested interests and
political pressures.
• Revisit Allocation of Business Rules (AoBR)/
Transaction of Business Rules (ToBR): Every
ministry/department should review their AoBR/
ToBR keeping in view present day requirements.
Strategy for
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186
E-initiatives and Probity
• Ensure probity in governance: Strengthen
institutional mechanisms for prevention and
detection of corruption:
o Reviewing existing vigilance operating
manuals and instructions to ensure probity.
o Improving transparency in placement
through initiatives in recruitment, placement
and training.
o Reviewing performance of ofcers based on
probity.
• Strengthen implementation of a Centralized
Public Grievance Redressal and Monitoring
System (CPGRAMs): Develop a reform
framework for the top twenty departments
for periodic monitoring of grievance receipts.
A revised version of CPGRAMS became
operational in January 2018, which enables
citizens to monitor the grievances lodged by
them on a single screen. An updated version
that enables transfer of grievances between
ministries/departments, bulk disposal of
grievances and multiple forwarding will be
operational shortly.
The Department of Administrative Reforms &
Public Grievances (DARPG) has analysed these
grievances, identied the top grievance prone
areas and their root causes and recommended
systemic reforms to bring about improvements
in service delivery. These initiatives need to be
continued with greater vigour and over time;
CPGRAMs should emerge as a strong mechanism
for efcient redressal of public grievances with
similar mechanisms across all states/UTs.
• Implementation of e-Ofce
1
: Implementation
of e-Ofce may be expedited in all ministries/
departments; all states/UTs may also be
encouraged to adopt it.
• Prompt delivery of services: Every department
should seek to simplify their processes to cut
administrative delays and ensure participatory
feedback mechanisms for efcient service
delivery. IT tools need to be expanded for
single window clearances and stakeholder
consultations in policy.
________________________________________
1
e-Ofce is a mission mode project under the National e-Governance Project of the government. The product, developed by the
National Informatics Centre (NIC), brings together independent functions and systems under a single framework to enhance
transparency, increase accountability and transform government work culture and ethics
187
Objective
• To transform our cities into economically vibrant
and environmentally sustainable habitats that
provide equitable access to basic infrastructure,
public services and opportunities to all citizens
and platforms for democratic participation.
Current Situation
Global experience indicates that cities are central
to raising economic productivity, enhancing job
creation and improving public nance at all levels.
Successful and long-lasting urban transformation
critically depends on reforming the way our cities
are governed. Hence, city governance is a key
enabler for urban transformation, and sustained
economic growth and job creation.
India is urbanizing at a fast pace and it is
expected that by 2050, close to 50 per cent of
India’s population would be residing in urban
areas, requiring the availability of sustainable
infrastructure and services for a better quality of
life.
1
Such infrastructure and services can only
be ensured through modern urban governance.
Indian cities are in the process of modernizing
their governance structures. The government
has undertaken various initiatives focusing on
tourism (HRIDAY -
Heritage City Development and
Augmentation Yojana
), infrastructure (Housing for
All, Smart Cities Mission, AMRUT -
Atal Mission
for Rejuvenation and Urban Transformation
) and
sanitation (
Swachh Bharat Mission
), among others.
The current status of urban governance can be
assessed through an analysis of its constraints.
Constraints
The key challenges plaguing urban governance in
India include the following.
• The absence of a modern spatial planning
framework, public utility design standards
and land titling in cities takes a huge toll
on economic growth and productivity,
environmental sustainability and living
conditions in cities.
• There is lack of human resource capacities in the
urban sphere at all levels, especially in urban
local bodies (ULBs). The municipalities are heavily
under-staffed and there are signicant gaps in
the skills required for urban management.
• Indian ULBs have huge scope to improve
their nancial autonomy and capacity to raise
resources.
2
Some of the key reasons behind the
poor state of municipal nances are the narrow,
inexible and non-buoyant tax base, broken
nancial accounting and audit systems, and the
inability of municipalities to levy and recover
taxes and user charges.
39. Modernizing City Governance
For Urban Transformation
Strategy for
New India @ 75
188
• Multiple institutions like parastatals,
development authorities, public works
departments, and ULBs themselves report
to different departments of the state
government and have been entrusted with
overlapping responsibilities. The distribution
of power between elected ofcials at the city
level (mayors and councillors) and central
administrative service cadres at the city/
district levels are highly tilted towards the
latter. The 74th Constitutional Amendment
(CAA) to decentralise urban governance has
not translated into reality, affecting citizen
participation in cities.
Way Forward
The following strategies are proposed to improve
urban governance in India by 2022-23.
1. Leveraging city economy
• Each city needs to be recognized as a distinct
unit of the economy. In larger cities, City
Economic Councils can serve as a clearinghouse
between business and governments to hasten
the progress of specic projects, improve
the ease of doing business and catalyse
investments into the city.
• Concomitantly, a quarterly city dashboard
capturing city-level investments, GDP and
employment growth, financial position
and financial performance, and status
of infrastructure projects can provide a
framework for data-driven decisions. This
will measure transformation and encourage
competition among cities. For this, the
Ministry of Housing and Urban Affairs
(MoHUA), the Ministry of Finance and
the Ministry of Statistics and Programme
Implementation may create frameworks for
a dashboard subsuming scheme-specific
performance MIS.
2. Decentralization and metropolitan
governance
• The multiplicity of agencies with overlapping
jurisdictions and fragmented roles and
Figure 39.1: Key strategies to improve urban governance by 2022-23
City Economy
Decentralization
Spatial Planning
ULB Finance
Capacity
Building
Citizen
Participation
189
responsibilities is common in Indian cities. This
leads to delays in implementation of projects
and inefcient service delivery. To achieve the
decentralization goals of 74th CAA, there is an
urgent need for articulating a framework for
governance of cities that includes development
authorities, other parastatals, special purpose
vehicles (SPVs) and Census Towns.
• Metropolitan governance systems are also
needed in million-plus cities. There is a strong
case for having a two-tier governance structure
where all local functions are transferred to the
ward committees and citywide services, such
as transportation, water supply, sewerage,
etc., are vested with the city council or regional
authorities.
• Moreover, state governments can be
encouraged to transfer 12th Schedule funds,
functions and functionaries to the ULBs. At the
same time, governance should be devolved
to the ward and area levels to enhance
downstream accountability mechanisms.
States can learn from innovative governance
frameworks involving the ULB and the state
government as seen in models like the Greater
Shimla Water Supply and Sewerage Circle.
3. Spatial planning and land titling
• There is urgent need for a synchronous and
modern national framework for the spatial
planning of cities that replaces the current
Urban Development Plans Formulation and
Implementation (UDPFI) guidelines. This
framework should factor in plan preparation,
implementation and enforcement at
metropolitan, municipal and ward levels. It
should also include congruent endpoints, pre-
dened success measures and a transparent
mechanism for consultative modication.
• Guaranteed land titling may also be evaluated
to foster a transparent land market. In this
regard, cities should lay out their own action
plans to provide infrastructure and formalize
existing settlements of the underprivileged.
4. Strengthening nances of ULBs and civic
agencies
• Cities require a nancial sustainability roadmap
to be nancially self-sufcient to support
high-quality infrastructure and the delivery of
services.
• This comprises scal decentralization, medium-
term scal plans, innovative models to improve
revenue collection, optimizing return on assets
especially land and buildings, value capture
methods, market-oriented revenue models,
PPPs in urban infrastructure and services, and
nancial accountability through audited balance
sheets and performance MIS reports.
• MoHUA, in consultation with the Ministry of
Finance, may draw up model provisions for
consideration by states in their municipal and
civic agency acts.
5. Capacity building by skilling for municipal
jobs and strengthening institutions
• There is huge potential for the creation of direct
and indirect skilled jobs in ULBs to improve the
quality of infrastructure and services and the
management of ULBs. MoHUA will develop
model municipal talent and in/outsourcing
guidelines to leverage efciencies generated by
technology and outsourcing.
• The National Skill Development Corporation
(NSDC) should be leveraged to improve
understanding of municipal jobs including
job denitions, technical competencies and
key result areas, which can be considered for
Strategy for
New India @ 75
190
inclusion in recruitment rules at the state level
and for performance standards/accreditation
for training institutes to foster a functional
platform for knowledge sharing. A separate
sector skill council for municipal services may be
considered.
6. Citizen participation
• Enhanced citizen participation is needed for
greater trust between citizens and governments,
improved sustainability, better service delivery
and accountability. Ward committees and area
sabhas should be activated with a technology-
enabled ‘Open Cities Framework’ and the use of
digital tools for feedback and reporting.
• ULBs should also encourage the participation
of all community associations, including
settlements of the underprivileged and civil
society organizations. ULBs should engage
with them frequently through city watch
groups, public hearings and city consultations
to create a framework for formal partnerships.
Rules and procedures need to be simplied
for faster implementation of constructive
recommendations.
________________________________________
1
Reforms to Accelerate the Development of India’s Smart Cities Shaping the Future of Urban Development & Services, World Economic
Forum, 2016.
2
High Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban Infrastructure Services, 2012.
191
Objectives
Ensuring that land markets function smoothly,
through efcient allocation of land across uses,
provision of secure property rights and titles,
and clear and consistent regulations around the
operations, leasing and sale of land are critical for
India to achieve and sustain high economic growth.
To this end, the following goals have to be achieved
by 2022-23:
• Legalise and ease land leasing.
• Consolidate fragmented plots of farmers to
enhance efciency and equity.
• Create a digitized and integrated land records
system that is easily accessible in all states.
• Increase efciency in the management of forest
land.
• Convert waste and fallow land to productive
uses.
40. Optimizing the Use of Land
Resources
Figure 40.1: Land use across different uses in India, 1990-91 to 2013-14
67.7
69.8
71.8
21.2
23.7
26.9
19.5
17.4
16.9
11.4
10.6
10.2
185.1
183.4
181.8
0
50
100
150
200
250
300
350
1990-91 2000-01 2013-14
Thousands of Hectares
Agricultural, Cultivable,
Culturable & Arable
Land
Permanent pastures &
other grazing lands
Barren & Unculturable
Land
Non-Agricultural Uses
Forests
Source: Directorate of Economics and Statistics, Department of Agriculture, Co-operation and Farmers’ Welfare
Strategy for
New India @ 75
192
• Strengthen property rights, especially
community rights over forest land.
Current Situation
As measured by the land-to-population ratio, India
is one of the most land scarce countries in the
world. Agriculture accounts for the bulk of land
use although the sector contributed only 17.45
per cent of value added to gross domestic product
(GDP) in 2015. There has been a sharp fall in the
average farm size from 2.28 ha in 1970-71 to 1.15
ha in 2010-11.
1
The total recorded forestland in India is 76.4
million hectares, which is about 23.3 per cent of
the total geographical area. Although it has more
than one-fth of its land under forest cover, Indian
forests contribute only 6.4 per cent of the demand
for wood.
2
Property rights over forestlands can be
strengthened. The passing of the Scheduled Tribes
and Other Traditional Forest Dwellers (Recognition
of Forest Rights Act (FRA)), which provides
individual as well as community rights over forests
and allows local communities/
gram sabhas
to
protect and manage their customary forests on a
sustainable basis, is a step forward.
At the same time, there is an imperative need to
make land available to meet the needs of a fast
expanding economy and rising population with a
greater thrust on vertical development.
Constraints
• Restrictive agricultural tenancy laws:
Agricultural tenancy laws passed by various
state governments between the 1950s and
1970s are highly restrictive.
o Conditions on leasing: While the states
of Kerala and Jammu & Kashmir prohibit
leasing out agricultural land without any
exception, states such as Bihar, Telangana,
Odisha, Madhya Pradesh, Chhattisgarh,
Tripura, Karnataka and Himachal Pradesh
allow leasing out only by certain disabled
categories of landowners, such as
physically and mentally handicapped
persons, persons from the defence services,
minors, widows, etc.
o Lack of ease in leasing: In other states,
there is no explicit ban on land leasing, but
there are restrictive clauses that discourage
landowners from leasing out land.
o High informal tenancy: Due to legal
restrictions, many landowners prefer to
keep land fallow rather than lease it out,
fearing they may lose their land rights for
illegally leasing out land. At the same time,
as market forces drive land leasing, there is
informal tenancy in several places. Informal
tenants do not have either security of
tenure or access to institutional credit,
insurance and disaster relief. As a result,
productivity on tenanted land suffers.
• Small sized land parcels: Landholdings in
India are small and highly fragmented, which
not only results in diseconomies of scale, but
also makes the task of irrigation management
and land improvement difcult. Punjab,
Haryana, Uttar Pradesh and Maharashtra have
completed their rst round of consolidation, but
further sub-division and fragmentation of land
have necessitated reconsolidation. The progress
in other states is either nil or negligible.
• Productivity of forestland: There has been
no systematic effort to increase the area and
productivity of forests on a sustainable basis.
One important reason is the lack of human
resources. The number of forest ofcials for
193
management of both timber and non-timber
forest resources is lacking relative to the size of
forests.
• Absence of conclusive titling and records:
Decient land records and lack of conclusive
land title result in costly litigation and adversely
affects investment and economic growth.
Way Forward
1. Agricultural Land
• States may consider the Model Land Leasing
Act, 2016. Further details on land leasing are
given in the chapter on Agriculture.
• Consolidate smaller plots of land through
pooling to enhance productivity. The
consolidation of fragmented landholdings
is essential to exploit scale economies and
increase farm incomes. Pooling the land of
willing farmers and organizing them into land
shares or joint stock companies will allow
farmers to earn dividends based on their equity
shares. Farmers will also earn wages/salaries as
an employee based on agricultural output.
2. Increase efciency around the management
of forest land
• Implement effectively the Forest Rights Act
(FRA) in all states to strengthen the property
rights of forest dwellers, tribal populations and
local communities.
• Zone land on a priority basis to clearly
demarcate forest and revenue lands.
• Bring more area under agro forestry using
wasteland, non-cultivable fallow lands, etc.
• Revisit the policy on tree-felling. Encourage
trees as a resource for farmers especially by
easing restriction on certain species of trees.
Current restrictions on inter-state and inter-
district movement of wood should also be
removed.
3. Updating and modernization of land record
systems
• Beyond creating and maintaining land records,
efforts must be made to update and digitize
these records in a user-friendly manner.
The National Land Records Modernization
Programme (NLRMP), now Digital India Land
Records Modernization Programme, aims to
develop a well-functioning and transparent
electronic land records management system
that will provide easy access to all available
and relevant information to give a fair
comprehensive position of any plot of land to
the landowner, concerned ofcers/agencies
and interested persons/entrepreneurs. This will
improve real-time information on land, optimise
use of land resources, benet landowners and
prospectors, assist in policy and planning,
reduce land disputes and check fraudulent/
benami transactions.
• While most states have started digitizing their
records, all states must have digitized textual
as well as spatial records so that they are
easily available and veriable. In this area,
commendable efforts have been made by the
states of Karnataka and Gujarat. It will also be
desirable to link the land record database with
banks.
• Other states should review their progress in
terms of digitization and move toward complete
and accessible up-to-date records. In due
course, states may move towards conclusive
land titling.
Strategy for
New India @ 75
194
4. Initiating Public Private Partnerships (PPPs)
for wasteland development
• Cultural wastelands, estimated at about
12 million ha, need to be improved and
productively utilized as a potential resource.
• This can be done either by
gram panchayats
with nancial support from states/union
government or through PPPs, with clearly laid
down procedures and norms.
• Strengthen property rights, plan urbanization
and prevent land degradation.
• Dene and identify common land, along with
details of ownership, control and use rights.
• Recognize the customary land tenure system
including community ownership in tribal areas.
• Remove encroachments on public land to
ensure that land is used efciently.
• Free estimated ceiling surplus land of over 1
lakh acres that has been under litigation for
several years through speedy disposal of cases.
• Dene and demarcate revenue and forestland,
including land used for shifting cultivation.
• Plan urbanization as per master plans with
greater emphasis on vertical growth.
• Prevent land degradation and soil erosion
through policies that promote fertilization and
organic farming.
5. Using land as resource to nance urban
development
• Tools such as land value capture, incentive
zoning, town planning schemes, and land-
based taxes like land value tax, vacant land tax,
land value increment tax, etc., can be used to
nance rapid and efcient urbanization.
________________________________________
1
Directorate of Economics and Statistics, Department of Agriculture, Co-operation and Farmers’ Welfare “Land Use Statistics at a
Glance-State Wise” http://eands.dacnet.nic.in/LUS_1999_2004.htm. Accessed April 20, 2018.
2
State of Forest Report 2011, Forest Survey of India.
195
Objectives
Evidence based policy making should be made
integral to the overall governance structure in New
India, 2022-23. To achieve this, timely generation
and dissemination of robust data at all levels of
governance would be a pre-requisite. This would
require:
• Collecting data for new measurable parameters
using latest technologies.
• Improving efciencies in processes related
to existing data collection by government
departments and agencies.
• Expanding warehousing facilities for storing and
integrating data from different sources.
• Making data available for industry practitioners,
academicians, researchers, etc., wherever
feasible.
• Integrating data analysis and interactive data
visualization into all policy formulation.
Current Situation
Background
Countries, where large-scale developmental
efforts are needed, require their policy delivery
mechanisms to be robust and efcient. However,
paradoxically, these countries have very little data
needed for the selection, implementation and
evaluation of effective policies.
1
In India, decision-
making is often based on surveys and consultations
that are released with a considerable lag. For e.g.,
the population census comes out once in ten years;
the latest National Family Health Survey – 4 was
released in 2015-16 after a period of 10 years.
Rapid advancements in technology have led to an
explosive growth in the volume of data produced.
Data is now being touted as one of the most
valuable resources. Given the proprietary access
to high value data sources, public services and
governance systems in India can better harness the
value of this data.
Statistical system in India
At the government level, various ministries/
departments of the Government of India, state
governments and the Ofce of the Registrar General
& Census Commissioner under the Ministry of
Home Affairs collect data. One important step taken
towards creating the availability of non-sensitive
data for public consumption on a common platform
was the launch of National Data Sharing and
Accessibility Policy (NDSAP) in 2012. The objective
2
of the policy was to
“increase the accessibility and
easier sharing of non-sensitive data amongst the
registered users and their availability for scientic,
economic and social developmental purposes”
.
This led to the creation of the Open Government
Data initiative where the domain data.gov.in was
registered in 2012. It is now one of the important
pillars of the Digital India programme.
41. Data Led Governance and
Policy Making
Strategy for
New India @ 75
196
As stated by the Ministry of Statistics and
Programme Implementation (MoS&PI),
3
central
ministries/departments or state government
departments that are responsible for an area/
subject are usually the key agencies for collecting
the statistics for that domain. The usual ow of
statistical information is from states to the centre
except in cases where the operations are part of
centrally sponsored schemes or when the data is
collected through national sample surveys. Viewed
from the national level, the Indian statistical
system at the centre is laterally decentralized
between the ministries and departments while the
vertical represented by each ministry is vertically
decentralized between the centre and the states.
A similar decentralized structure exists at the state
levels, which have lateral decentralization at the
state department level and vertical decentralization
at the district level. In addition, statistical ofces
at the central and state levels, i.e., the Central
Statistics Ofce (CSO) and the Directorate of
Economics and Statistics (DESs) respectively, bring
together all statistics related to India and examine
various aspects including quality, accuracy, and
timeliness.
The need for evidence-based policymaking has
been recognised for years now. Five-year plans
in the past have stressed the need for frequent
and robust data collection processes in various
contexts ranging from health to natural calamities
to agriculture. The Report of the Dr. Rangarajan
Commission in 2001 also acknowledges the
increased need for data in the decision-making
process.
4
Constraints
The following constraints need to be overcome to
enable India’s transition to a data-led governance
structure.
• There is over-reliance on data collection through
surveys. These are released at a considerable
lag, which diminishes their usefulness in
policymaking. There is a dearth of availability of
real time operational/administrative data.
o One challenge in this regard is that
considerable numbers of stakeholders are
involved in enabling data collection systems
that are premised on a “bottom-to-top”
approach. It will be a huge challenge to
get all these stakeholders on board for a
streamlined data collection and reporting
mechanism as envisaged for 2022-23.
• There is a problem with the usability of data
that is currently generated.
o Large volumes of data collected by
different government agencies and
departments are not shared, even among
the departments.
o The data shared is often not available in
machine readable format or cannot be
integrated with data from other sources to
help develop multi-dimensional insights.
o Enabling adoption of the latest technology
at the grassroots level would involve
substantial investment along with skill
development of local functionaries.
o Furthermore, planning will be required to
integrate different technologies so that
ground level data can be aggregated.
• Lastly, there is considerable lack of awareness
regarding currently available data sources.
Way Forward
The following framework, which focuses on the key
aspects requiring intervention, needs to be enabled
by 2022-23 to achieve transparent governance:
197
Data collection methods should be streamlined
through the following measures:
• Both administrative and survey data need to
be collected in digital formats across various
sectors in real time to move from paper based
to digitally driven operations. This would
require the adoption of latest technologies that
require recording in digital format, geo-tagging
etc. This will address the issues related to time
lags, data cleansing, etc., associated with
surveys to a large extent.
• Ensure availability of data at a more granular
level – village/block/district. NITI Aayog is
already engaged in developing a National Data
Analytics Portal, which is envisioned as a central
repository for real-time data across different
sectors for all states/UTs.
• Enable data sharing in real time through
Application Programming Interfaces (API)
between data stored across different databases
and across ministries in a central location for
easy access by the public.
The following specic steps will ensure that the
above objectives are achieved.
1. Data integration and quality assurance
Most of the administrative and survey data are
generated at the state level. It is recommended
that after going through the process of quality
assurance, where discrepancies are removed,
and formats are standardized, the data should
be integrated in a state data repository. This
process should be followed by all states
based on guidelines drawn up by the central
government.
Reliable and timely data is essential for
evidence-based policy making, which should be
the norm. Necessary reform of our statistics and
Figure 41.1: Framework for achieving transparent governance
Figure 1: Framework for achieving transparent governance
Data collection methods should be streamlined through the following measures:
Both administrative and survey data need to be collected in digital formats across various
sectors in real time to move from paper based to digitally driven operations. This would
require the adoption of latest technologies that require recording in digital format, geo-tagging
etc. This will address the issues related to time lags, data cleansing, etc., associated with
surveys to a large extent.
Ensure availability of data at a more granular level – village/block/district. NITI Aayog is
already engaged in developing a National Data Analytics Portal, which is envisioned as a
central repository for real-time data across different sectors for all states/UTs.
Enable data sharing in real time through Application Programming Interfaces (API) between
data stored across different databases and across ministries in a central location for easy
access by the public.
Strategy for
New India @ 75
198
data collection system must be undertaken as
soon as possible to achieve this objective.
Some state governments like Andhra Pradesh,
Gujarat, and Rajasthan have taken important
steps to leverage technology for evidence-based
policymaking. However, these steps need to be
further streamlined and adopted by all states.
This will empower the ofcer on the ground to
take data led decisions. This aspect forms an
integral part of the Digital Transformation Index
being instituted by NITI Aayog. Measures to
leverage technology for informed policymaking
will be implemented in a time bound manner
and closely monitored for desired results.
2. Data protection
The issue of condentiality will need to be
ensured while dealing with citizen level data.
The Justice Sri Krishna Committee Report
submitted its recommendation in July 2018. Its
recommendations are under active consideration
to formulate a data protection law in India.
3. Role of tertiary big data
For better governance and evidence-based
policymaking, it is recommended that tertiary
big data collected by private third parties
should be used. Over time, the National Data
Analytics Portal aims at collecting, analysing
and disseminating various types of tertiary data
of different levels of granularity.
4. Skill development and restructuring
Government statistical organizations
responsible for data collection and reporting
need to be updated on new technologies.
Data scientists with multiple skills in the
areas of statistics, analytics, computer science
and programming are rare in the Indian
government. MoS&PI needs to have an
adequate number of data scientists to take
advantage of new technologies. Re-skilling
needs to be promoted across government
agencies, both at the state level and at the
centre. A roadmap for strengthening various
government agencies including MoS&PI needs
to be formulated and implemented in a time
bound manner.
________________________________________
1
http://live.worldbank.org/sites/default/les/Big%20Data%20for%20Development%20Report_nal%20version.pdf. Accessed April 20,
2018.
2
http://www.dst.gov.in/national-data-sharing-and-accessibility-policy-0. Accessed April 22, 2018.
3
http://www.mospi.gov.in/142-present-indian-statistical-system-organisation. Accessed April 25, 2018.
4
http://mospi.nic.in/11-background. Accessed April 30, 2018.
199
Agriculture
• Shri A. J. Tharakan, Member, Seafood Exporters
Association of India
• Shri Ajay Kumar, Adviser, Merino Group
• Shri Anand Kothadiya Krishiratna, Extension
Activist, Sahaydri Farmers Producer
Organisation
• Dr. Ashwini Mahajan, Co-Convener, Swadeshi
Jagran Manch
• Shri B. Ramarao, Farmer Representative, Andhra
Pradesh
• Dr. B Venkateswarlu, Vice-Chancellor, Vasantrao
Naik Marathwada Krishi Vidyapeeth
• Shri Balbir Singh Rajewal, President, Bharatiya
Kisan Union
• Ms. Chhaya Bhavsar, Senior Coordinator, ASHA
• Shri D. Bhuyan, Director, SFAC
• Dr. Gopal Naik, Professor & Dean Faculty,
IIM- Bangalore
• Dr. GV Srinivasan, Scientist, Spices Board
• Ms. Ishira Mehta, Director & Co-Founder, Crop
Connect Enterprises Pvt. Ltd.
• Shri Ishwar Lal Patidar, Chairman, Rajya Krishi
Aayog, Madhya Pradesh
• Shri Jalees, Researcher, Navdanya
• Shri Joy P Joseph, Spice Farmer, Kerala
• Kiran Vissa, National Co-Convener, ASHA
• Shri K. K. Agarwal, Farmer Representative,
Madhya Pradesh
• Shri Krishan Bir Chaudhary, President,
Bharatiya Krishak Samaj
• Shri Kuldeep Singh Brar,
Farmer Representative, Punjab
• Shri Lalit Deora, Farmer Representative,
Rajasthan
• Shri P. Srinivas, Member, Warehousing
Development & Regulatory Authority (WDRA)
• Dr. PK Joshi, Director, South Asia, IFPRI
• Shri Prakash Lohia, MD, Merino Industries Ltd
• Shri Pravesh Sharma, Founder & CEO,
Sabziwala.com
• Prof. Anil Kumar Singh, Vice-Chancellor,
Rajmata Vijayaraje Scindia Krishi
Vishwavidyalaya
• Shri Puneet Jhajharia, Director & Co-Founder,
Crop Connect Enterprises Pvt. Ltd.
• Shri Raghunath Patil, Shetkari Sangathan,
Maharashtra State
• Dr. Rajaram Tripathi, National Convener,
All India Farmers Alliance
Annex 1
During the preparation of this document, the NITI Aayog consulted extensively with groups of
scientists, think tanks, voluntary organizations, industry, agriculture and labour. This Annex provides a
comprehensive list of these outside experts and organizations. Any omissions are inadvertent.
Strategy for
New India @ 75
200
• Shri Rajkumar Singh Hajari, Farmer
Representative, Karnataka
• Shri Ramesh Kumar Yadav, Chairman,
Haryana Farmers Commission
• Shri Rampal Jat, National President,
Kisan Mahapanchayat
• Shri RG Agarwal, Chairman,
Dhanuka Agritech Ltd.
• Shri RS Sodhi, MD, Amul
• Dr. Sandeep Kumar, Haryana State Farmers
Commission
• Dr. Shanti Swarup Khanna, Former Adviser
(Agriculture), Planning Commission
• Shri Sharad Marathe, UTS
• Ms. Smita Bhatnagar, Senior Coordinator, ASHA
• Shri Tshering Gyatso Lepcha,
Spice Farmer, Sikkim
• Shri Tushar Jagtap, Senior Manager, Sahaydri
Farmers Producer Organisation
• Shri V. Ravichandra, Farmer Representative,
Tamil Nadu
• Shri Veerpal Singh, Farmer Representative,
Uttar Pradesh
• Shri Vijay Pratap Singh Aditya, CEO, EkGaon
• Shri Vikas Chaudhary, Farmer Representative,
Haryana
• Shri Vilas Shinde, MD, Sahaydri Farms Producer
Company Ltd.
• Ms. Vimla Sihag, Farmer Representative,
Rajasthan
• Dr. Vinod Kumar Bhatt, Executive Director,
Navdanya
• Dr. VL Patil, President,
Bharatiya Krishak Samaj – Vidharbha
Services Sector
• Shri Ajay Singh, CMD, Spicejet
• Shri Ajit Gulabchand, CMD, HCC Ltd
• Shri Aroon Purie, Chairman, India Today Group
• Shri Arun Maira, former Chairman, Boston
Consulting Group India
• Shri Aseem Chauhan, Chancellor, Amity
Education Society
• Shri Ashish Chauhan, CEO, BSE
• Shri Bharat Anand, Senior Partner, Khaitan & Co.
• Shri Bharat Joshi, Director, Trac1 Logistics Joshi-
Konoike Transport & Infrastructure
• Shri Bipin P Singh, Founder, Mobikwik
• Shri Deep Kalra, Founder & CEO,
makemytrip.com
• Shri Kamal Hingorani, SVP, Spicejet
• Shri Kandula, Grant Thornton
• Ms. Kanika Tekriwal, CEO, JetSetGo
• Shri Nikhil Sahni, Head - Government & Branch
Banking, Yes Bank
• Shri Prabodh Thakker, Chairman,
Global Insurance
• Shri Raghav Bahl, Founder, The Quint
• Shri Raghav Verma, Co-Founder, Chaayos
• Shri Rahul Bhasin, Managing Partner, Baring
Private Equity Partners
201
• Shri Rahul Vatts, Senior VP, Idea Cellular
• Shri Rajat Mukarji, CCAO, Idea Cellular
• Shri Rajeev Talwar, CEO, DLF
• Shri Rajnish Wahi, Senior Vice President,
Snapdeal
• Shri Ranji Dua, Chairman, Dua Associates
• Shri Soumya Palchoudhuri, Yes Bank
• Shri Sunil K Goyal, MD & Fund Manager,
Your Nest Venture Capital
• Shri Suresh Senapaty, Wipro
• Shri Utsav Somani, Partner, Angelist India
• Shri Vikesh Mehta, Grant Thornton
Manufacturing Sector
• Shri Adesh Gupta, CEO, Liberty Group &
Chairman, Council For Footwear, Leather and
Accessories (CFLA)
• Shri Dilip G Shah, Secretary General, Indian
Pharmaceutical Alliance
• Shri Dinesh Aggarwal, Joint MD,
Anchor Electricals
• Shri Eshwar K Vikas, CEO, Mukunda Foods
• Shri Gautam Nair, MD, Matrix Clothing (P) Ltd.
• Shri G.K. Raman, Group President Corporate
Affairs, Arvind Textiles Ltd.
• Shri Harsh Mariwala, Chairman, Marico Ltd.
• Ms. Ishita Dey, Chief Project Manager,
Economic Times
• Shri Jagdish Khattar, Founder, Carnation Auto
• Shri Mahendra Singhi, CEO (Cement), Dalmia
Cement (Bharat) Ltd.
• Shri Manish Chaturvedi, MD & CEO, Indus
Strategy
• Shri Manish Mishra, Chief Regulatory Affairs,
Tata Steel
• Shri Manish Sharma, CEO, Panasonic India
• Ms. Meghana Narayan, Founder, Slurrp Farm
• Shri Narasimha Hegde, Vice President, Ashok
Leyland Limited
• Ms. Nidhi Saxena, CEO, Zoctr
• Shri Om Prakash Lohia, CMD, Indorama
Synthetics
• Shri Probir Das, MD, Terumo India Private
Limited
• Shri Rajesh Shah, CMD, Mukund Iron and Steel
• Shri Ramakrishna NK, CEO, Rang De
• Shri Ramesh Ramachandran, Senior Vice
President, Strategy & Precision Farming
Mahindra & Mahindra Ltd.
• Shri Roshan Lal Tamak, Executive Director,
Sugar DCM Shriram
• Shri Sahil Malik, MD, Da Milano
• Shri Sanjay Modi, MD, APAC & Middle East
Monster.com
• Shri Shailesh Pathak, CEO, L&T Infrastructure
Development Project
• Shri Subrata Biswas, Director (Engineering,
Research & Development), BHEL
• Shri Vedant Jhaver, CEO, Jhaver Group
• Shri Vijay Iyer, MD, Rio Tinto India
• Ms. Vinita Sethi, Senior Vice President, Apollo
Hospitals
Strategy for
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Civil Society Organisations
• Shri Aloysius P. Fernandes, Secretary, MYRADA
• Shri Aditya Patnaik, Antodya Chetana Mandal
• Shri Akhil Dobhal, Sr. Manager, Prayas
• Shri Amod Kanth, General Secretary, Prayas
• Dr. Ashok Khosla, Chairman, Development
Alternatives
• Shri Ashwath Bhatt, Jt. Secretary,
H. N. Wanchoo Trust
• Dr. Bindeshwar Pathak, Founder,
Sulabh International
• Shri Harish Hande, CEO, Selco
• Dr. Indumathi Rao, Regional Adviser, CBR
Network, Bengaluru
• Dr. J. Paul Bhaskar, Chairman, Peace Trust
• Dr. Lalit Kumar, Sr. Vice President,
Sulabh International
• Dr. Madhav Chavan, Director, Pratham
Education Foundation
• Shri Manas Satpathy, Pradan
• Shri Nachiket Mor, Bill & Melinda Gate
Foundation (BMGF)
• Shri Neichute Duolo, CEO, Enterprises
Associates
• Shri Prabhat Pani, TATA Trust
• Shri Pradip Kumar Sarmah, Executive Director,
Centre for Rural Development
• Shri Rajan Bahadur, MD & CEO, CARE India
• Dr. Rajesh Tandon, President, PRIA
• Shri Ratna Mathur. Dy. Programme Director,
CARE India
• Shri Ravi Pokharna, Executive Head (Projects),
Rambhau Mhalgi Prabhodhini, Delhi
• Shri Ravindra Gajbhiye, Activist, Sampoorna
Bamboo Kendra, Melghat, Maharahtra
• Shri Ravindra Sathe, Executive Director,
Rambhau Mhalgi Prabhodhini, Mumbai
• Dr. R. C. Jha, Scientist, Sulabh International
• Shri Rohit Choudhary, Regional Director
• Shri Santhosh Gupta, CEO, Indian Social
Responsibility Network (ISRN)
• Shri Shashi Bhushan, Chairman, SATHI-UP
• Shri Shubham Oswal, Programme Head. Water
& Environment, Green Energy Foundation
• Shri Srikanth Viswanathan, CEO, Janaagraha
• Shri Surendra Kulkarni, Member (Director),
Seva Bharati Purbanchal
• Ms. Bhavana Luthra, Executive Director,
LEAD India
• Ms. Puja Marwaha, CRY
• Ms. Sandhya Venkateswaran,
Dy. Director, BMGF
• Ms. Sharmila Oswal, President, Green Energy
Foundation
• Ms. Shatabdi Pande, Executive Member,
Chhattisgarh Mahila Manch
• Dr. S. Chatterjee, Executive President, Sulabh
International
• Dr. Vijay Mahajan, CEO, BASIX
203
Scientists and Innovators
• Shri Amit Mishra, GM, Piramal Water Pvt. Ltd.
• Prof. Anil Gupta, National Innovation
Foundation
• Shri Arjun P. Gupta, Founder & CEO,
(Energy Management), Smart Joules
• Shri Chander Shekhar, SCI(G), ICMR, New Delhi
• Dr. H. Purushottam, CMD, National Research
Development Corporation
• Dr. K.D. Nayak, Former Chief Controller, R&D
(MED & MIST), DRDO
• Shri Karunakara M. Reddy, Smart India Pvt. Ltd
• Ms. Poyni Bhatt, CEO, Sine IIT - B
• Shri Pradeep Mehta, Head Finance & Legal,
Finance & Legal F/A Technology
• Shri Premkumar Seshadri, HCL Info systems
• Dr. Raghunath Mashelkar, Former DG, CSIR
• Shri Rajeev Kher, Saraplast
• Dr. S.K. Sarin, Director, ILBS
• Shri Sandeep Goenka, Zebpay
• Shri Sanjeev Malhotra, CEO, IOT Centre of
Excellence, NASSCOM
• Shri Shishir K. Jha. Asstt. Professor, IIT Bombay
• Shri Sudesh Menon, WaterLife
• Prof. Supriyo Mitra, Dean, IISER, Kolkata
• Dr. T. Mohapatra, DG, ICAR
• Shri Vignesh Subrahmanian, Lead Scientist, GE
Global Research
• Dr. Vijay Bhatkar, Chancellor, Nalanda University
• Prof. Vijay Chandru, Co-Founder,
Strand Life Sciences
Labour Representatives and Trade
Unions
• Shri Ajit K Ghose, Institute of Human
Development
• Shri AK Sahu, ESIC
• Shri Alakh Sharma, Institute for Human
Development
• Shri Arup Mitra, DG NILERD
• Prof. Chinmay Tumbe, IIM-A
• Shri GB Gawde, Indian National Trade Union
Congress
• Prof. Jeemol Unni, Ahmedabad University
• Ms. Kamal Gaur, Save the Children
• Ms. Manali Shah, SEWA
• Ms. Nayana Mallapurkar, Tata Institute of Social
Sciences
• Ms. Neelam Chibber, Industree Foundation
• Dr. Nomaan Majid, ILO
• Shri Saji Narayanan C.K., BMS
• Shri Sanjay Singh, Tata Sons
• Shri Sanjeev Bikhchandani, Naukri.com
• Shri Santosh Mehrotra, JNU
• Prof. Shalini Bharat, Tata Institute of Social
Sciences
• Dr. Sher Verick, ILO
• Dr. S K Sasikumar, VV Giri National Labour
Institute
Strategy for
New India @ 75
204
• Ms. Sudipta Bhadra, ILO
• Shri Sunil Rana, Mercer - Global Consulting
Practice & Public Sector
• Shri Yoginder Alagh, Economist
Think Tanks
• Dr. A Ganeshkumar, Professor, IGIDR
• Shri Ajay Lele, Senior Fellow, IDSA
• Dr. Amit Chandra, Associate Director,
Centre for Civil Society
• Dr. Anant Sudarshan, India Director,
Energy Policy Institute at
• Dr. Anirban Ganguly, Director, Shyama Prasad
Mukherjee Research
• Dr. Anshu Bharadwaj, Director, CSTEP
• Shri Arghya Sengupta, Research Director, Vidhi
Centre for Legal Policy
• Ms. Bindu Ananth, Chair, IFMR
• Dr. Errol D’Souza, Director-in-Charge,
IIM-Ahmedabad
• Dr. Harsha Vardhana Singh, Executive Director,
Brookings India
• Shri Harshit Sehgal, Senior Director,
Ananta Centre
• Dr. Jaydeep Mukherjee, Faculty, IIFT
• Dr. KR Shanmugam, Director, Madras School of
Economics
• Dr. Navroz Dubash, Senior Fellow, CPR
• Dr.Pradeep Apte, Professor, Gokhale Institute of
Politics & Economics
• Shri Prashant Girbane, Director, Pune
International Centre
• Dr. Pravarkar Sahoo, Professor, IEG
• Dr. Radhicka Kapoor, Fellow, ICRIER
• Shri Rajesh Chakraborty, Co-Founder,
Sunay Policy Advisory
• Dr. Rupa Chanda, Professor, IIM-Bangalore
• Ms. Rwitwika Bhattacharya, CEO,
Swaniti Initiative
• Dr. Sachin Chaturvedi, DG, RIS
• Shri Saket Mishra, India Foundation
• Shri Saurabh Chandra, Fellow, Takshashila
Institution
• Dr. Seeta Prabhu, Tata Chair Professor, TISS
• Dr. Shakti Sinha, Director, Nehru Memorial
Museum & Library
• Dr. Shekhar Shah, DG, NCAER
• Dr. Sumeet Bhasin, Director, PPRC
• Shri Sunjoy Joshi, Chair, ORF
205
Employment and Labour Reforms
• Dr. Ajit Ghose, Visiting Professor, Institute of
Human Development
• Secretary General, Social Security Association of
India
• Self-Employment Women’s Association
• Dr. Alakh N. Sharma, Professor & Director,
Institute for Human Development
• Dr. Jeemol Unni, Expert on Employment, IRMA
• President, Bhartiya Mazdoor Sangh
• President, Indian National Trade Union
Congress
• Dr. S. K. Sasikumar, Senior Fellow,
V. V. Giri National Labour Institute
• Employment Specialist, International Labour
Organisation (ILO)
• Shri Amod K. Kanth, Prayas Juvenile Aid Centre
• Dr. Prabhu P. Mohapatra, Delhi University
• Prof. Aditya Bhattacharjea, Delhi School of
Economics
Technology and Innovation
• Dr. Raghunath Mashelkar, Former DG, CSIR
• Shri Vignesh Subrahmanian, Lead Scientist, GE
Global Research
• Dr K. D. Nayak, Former Chief Controller, R&D
(MED & MIST), DRDO
• Dr T. Mohapatra, DG, ICAR
• Ms. Poyni Bhatt, CEO, Sine IIT - B
• Shri Rajeev Kher, Saraplast
• Shri Sandeep Goenka, Zebpay
• Shri Karunakara M Reddy, Smart India Pvt Ltd
• Shri Sanjeev Malhotra, CEO, IOT Centre of
Excellence, NASSCOM
• Shri Premkumar Seshadri, HCL Info systems
• Prof. Vijay Chandru, Co-Founder,
Strand Life Sciences
• Prof. Anil Gupta, National Innovation
Foundation
• Dr. H. Purushottam, CMD, National Research
Development Corporation
• Dr. SK Sarin, Director, ILBS
• Prof. Supriyo Mitra, Dean, IISER Kolkata
• Dr. Vijay Bhatkar, Chancellor, Nalanda
University
• Shri Sudesh Menon, WaterLife
• Shri Pradeep Mehta, Head Finance & Legal,
Finance & Legal F/A Technology
• Shri Amit Mishra, GM, Piramal Water Pvt. Ltd.
• Shri Shishir K. Jha. Asstt. Professor, IIT Bombay
Annex 2
This Annex provides a comprehensive list of outside experts and organizations consulted by the
different verticals in NITI Aayog. Any omissions are inadvertent.
Strategy for
New India @ 75
206
• Shri Chander Shekhar, SCI(G), ICMR, New Delhi
• Shri Arjun P. Gupta, Founder & CEO, (Energy
Management), Smart Joules
Industry
• Shri Ajay Shankar, Former Secretary,
Department of Industrial Policy and Promotion
• Dr. Pankaj Chandra, Vice Chancellor,
Ahmedabad University
• Shri Nakul Anand, Executive Director, ITC
• Shri Nirupam Srivastava, Vice President,
Hero Enterprise
• Shri Mukhtarul Amin, Chairman, Council for
Leather Exports
• Shri M.S. Unnikrishnan, Managing Director &
CEO, Thermax India Pvt Ltd
• Shri Ajay Khanna, Chief, Strategic and Public
Affairs, Jubiliant Bhartia Group
• Shri Ankur Kanaglekar, Director, Boeing India
• Shri Anup Rai, SMCC Construction India Ltd.
• Shri Samir Advani, Rafael India
• Shri K K Gupta, Vice President, L&T Construction
• Shri Salhotra Bharat, Managing Director of
Alstom India Limited
• Shri Madhu S Nair, CMD, Cochin Shipyard Ltd
• Shri Parameshwaran Nath, Director, PayPal
Payments
• Shri Praveen Shankar Pandya, Chairman, The
Gem and Jewellery Export Promotion Council
Doubling Farmers’ Income
• Dr. Punjab Singh, President National Academy
of Agricultural Sciences, Pusa New Delhi
• Dr. P. K. Joshi, IFPRI-South Asia Ofce, Pusa,
New Delhi
• Dr. P. G. Chengappa, Forcer Vice-Chancellor,
University of Agricultural Sciences
• Dr. Sukhpal Singh, Professor, IIM, Ahmedabad
• Shri Ashish Bahuguna, Chairperson, FSSAI, FDA
Bhawan, New Delhi
• Dr Gopal Krishna, Director & VC, Central
Institute for Fisheries Education, Mumbai
• Dr. S. Shivkumar, Chief Executive of the Agri
Business Division, ITC Kolkata
• Shri H K Bhanwala, Chairman & Managing
Director, NABARD, Mumbai
• Shri Satish Chander, Director General, Fertilizer
Association of India, New Delhi
• Dr. R. S. Sodhi, Managing Director,
Gujarat Co-operative Milk Federation Ltd.
• Shri Raghunath Dada Patil, President,
Maharashtra State Shetkari Sangathan, Sangli,
Maharashtra
• Shri Anil Kumar Sahni, Tigra Farm
• Shri Mayank Jalan, Keventer Agro Limited
• Shri Sudesh Menon, Water Life
• Shri Sudhir Mehta, Pinnacle Industries Limited.
• Shri Rahul Mirchandani, Aries Agro Limited.
• Shri Nikhil Nanda, Escorts Ltd.
• Ms. Priya Nair, Hindustan Unilever
207
• Shri Pritam Shah, Parag Milk Foods
• Shri Pravesh Sharma, Former Managing
Director, Small Farmers’ Agribusiness
Consortium
• Dr. S K Goel, Former Additional Chief Secretary,
Agriculture, Cooperation and Marketing,
Government of Maharashtra
• Shri Gokul Patnaik, Global Agri System,
New Delhi
Travel, Tourism and Hospitality
• Dr. (Mrs) C.T. Misra, Secretary, General, INTACH
• Shri Deep Kalra, CEO, Make My Trip
• Shri Ritesh Agarwal, CEO, Oyo Rooms
• Shri Vishesh Chandiok, CEO, Grant Thornton
India LLP
• Shri Dipak Deva, Travel Corporation of India
• Shri Kapil Chopra, Oberoi Hotels
• Shri Arjun Sharma, MD, World Travel & Tourism
Council (WTTC)
• Shri Manan Thadan, MD, HVS
• Ms. Priya Paul, Chairperson, Apeejay Surrendra
Park Hotel
• Shri Vivian Peres, Director, Ventours Int.
Pvt. Ltd.
• Shri Sujay Chouhan, Ocean Blue
• Shri Dhruv Shrangi, CEO Yatra Online, Inc
• Ms. Jyotsana Suri, CMD Bharat Hotels
• Shri Sunil Munjal, Chairman Hero Enterprises
• Shri Ratish Nanda, Aga Khan Trust
• Shri Ranjan Mathur, MD Top Travels
• Shri Ajeet Bajaj, MD, Snow leopard Adventure
• Shri Aman Nath, MD & CEO, Neemrana Heritage
• Shri Joseph Dominic, CGH Earth Experience
Hotels
• Shri Ashish Phookan, MD, Assam Bengal
Navigation
• Shri Rahul Bhatia, MD, Indigo
• Ms. Aparajita Jain, Nature Morte
Minerals
• Prof. Durga Charan Panigrahi, Indian School of
Mines, Dhanbad
• Shri S.Vijay Kumar, Former Secretary (Mines),
TERI
• Prof. S.K.Sharma, Head, Department of Mining
Engineering, IIT-BHU
• Shri Vijay Iyer, Managing Director, Rio Tinto
• Dr. V.N.Vasudev, Senior Geologist, Consultant
• Shri Sunil Duggal, CEO & Managing Director,
Hindustan Zinc Limited, Vedanta Resources
• Shri Rahul Baldota, Jt. Managing Director, M/s.
Ramgad Minerals & Mining Limited
• Shri Anjani Agarwal, Ernst & Young
• Shri Saradchandra Rao Peshwa, Director,
Deccan Exploration Services Private Limited
• Shri Rajeev Singhal, Vice President, Tata Steel
• Shri Tuhin Mukherjee, Managing Director, FICCI
• Prof. Raman Srikanth, NIAS
• Shri R.K.Sharma, Secretary, FIMI
• Shri Arun Kumar Kothari, President Mining
Engineers Association of India
Strategy for
New India @ 75
208
• Shri Upendra Kumar, Member, CII
• Shri Akshaydeep Mathur, Secretary General,
Federation of Mining Association of Rajasthan
Energy
• Shri Kirit S. Parikh, IRADE
• Director (Exploration and Production), Oil and
Natural Gas Corporation
• Shri R.V. Shahi, Ex-Secretary, MOP
• Shri Ajay Mathur, The Energy & Resources
Institute
• Shri Tulsi Tanti, Chairman and Managing
Director, Suzlon
• Shri Chetan S. Solanki, IIT Bombay
• Shri Vipul Tuli, CEO, Cemcorp Industries Limited
• Shri Rahul Tongia, Ph.D.Fellow, Brookings India
• Shri Sumant Sinha, ReNew Power
• Shri Ajay Khandelwal, President, Exploration
and Production, Reliance Petroleum
• Shri Shantanu Dixit, PRAYAS Energy Group
• Shri Anshu Bhardwaj, CSTEP
• Shri Deepak Gupta, Shakti Sustainable Energy
Foundation
• Shri Tarun Sawhney, Triveni Group
• Shri Anil Sardana, CEO & MD, Tata Power
• Shri U.C. Muktibodh, Director, Technical, NPCIL
• Shri Anil Kumar Chalamalasetty, MD, Greenko
• Shri Pramod Chaudhari, Chairman, Praj
Industries Limited, Praj Group
• Shri Alla Ayodhya Rami Reddy, Chairman,
Ramky Group
• Head, Research Division, CRISIL
• Shri H.N. Sharan, Founder Desi Power
• Shri Tejpreet, Bharat Light and Power
• Director, The Energy and Resources Institute
• Prof. Ashok Jhunjhunwala, IIT Madras
• Shri R. K Srivastava, ED-NETRA
• Dr. Markus Braunsperger, CTO, Hero Moto Corp
• Shri Rajan Wadhera, Mahindra and Mahindra
• Dr. Rajan Rawal, CEPT University
• Chairman, Alliance for an Energy Efcient
Economy (AEEE)
• Dr. Anurabha Ghosh, CEO, Council on Energy,
Environment and Water
• Ms. Priyavrat Bhati, Director, Centre for Science
and Environment
• Shri Shantanu Dixit, Group Coordinator, PRAYAS
(Energy Group)
• Group Head (Energy Management), National
Productivity Council
• Chief Engineer, Smart Grid Project Gurgoan
• Shri A.K Asthana, Sr.Technical Expert, GIZ India
• Shri Puneet Dalmia, MD, Dalmiya Bharat Group
• Shri Arjun Gupta, Smart Joules Pvt Ltd.,
• Shri Arindam Paul, Atom berg Technologies Pvt
Ltd.
• Shri Rangan Banerjee, HOD, Department of
Energy Science and Engineering, IIT Bombay
• Shri Manit Rastogi, Founder Partner,
Morphogenesis
• Shri Shubhreet Barmer, Sr. lighting Application
Specialist, Philips lighting India Ltd.
209
• Shri Kaushik Sanyal, HOD-Business Service
Group, Tata Power Distribution Ltd
Surface Transport, Railways, Civil
Aviation, Ports, Shipping and
Inland Waterways, Logistics
• Shri Kapil Kaul, Centre for aviation
• Shri Ranjit S. Walia, Managing Counsel, Walia
& Co
• Shri G. Raghuram, Director, IIM Bangalore
• Shri Afaq Hussain, Director, Bureau of Research
on Industry & Economic Fundamentals
• Dr. G. V. R. Shastri, Coastal India Development
Council
• Shri Anoop Kumar Sharma, Indian National Ship
Owners Association
• Capt. I. V. Solanki
• Shri Umesh Grover, Secretary General,
Container Freight Station Association of India
• Capt. Ashwani Nayar, Hind Terminals Pvt. Ltd.
• Dr. Mahesh Reddy, Infrastructure Industry &
Logistics Federation of India
• Shri K. Janardan Rao, MD, Indian Port
Association
• Shri Akshima T Ghate, Fellow, TERI
• Shri R. N. Malik, Professor, Manav Rachna
University
• Prof. Sudhir Mishra, Professor, IIT Kanpur
• Shri D.P. Gupta, Asian Institude of Transport
Development
• Shri Sachin Bhanushali, Director & CEO,
GatewayRail
• Shri Jaspal Singh, Consultant, International
Association of Public Transport )
• Dr. Ravindra Kumar, Principal Scientist, Central
Road Research Institute
• Shri Vinod Vasudevan, Assistant Professor, IIT
Kanpur
• Shri Gopal Patil, Associate Professor, IIT Bombay
• Shri Seema Sharma, IIT Delhi
• Dr. Sewa Ram, SPA, Delhi
• Shri Sunil Sherlekar, Chairman and CEO,
Sankhyasutra, Bangalore
• Shri Partha Mukhopadaya, Senior Fellow, Centre
for Policy Research
• Ms. Rupali Ghanekar, Economic Adviser, Indian
National Ship Owners Association
• Dr. Kulwant Singh, UN Habitat
• Shri Amitabh Verma, Ex IAS
• Shri Dhiraj Mathur, PWC
• Shri Manish Sharma, PWC
• Shri Clay Stranger, RMI
• Shri Kartike Karwal, Associate Director, SIAM
Smart Cities for Urban
Transformation and Modernizing
City Governance for Urban
Transformation
• Dr. Chetan Vaidya, Former Director, School of
Planning and Architecture, New Delhi
• Shri Srikanth Vidwanathan, CEO, Janaagraha,
Bangalore
• Dr. Jagan Shah, Director, National Institute of
Urban Affairs, New Delhi
Strategy for
New India @ 75
210
• Dr. O. P. Agarwal, Ex-OSD, Urban Transport, WRI
• Ms. Shreya Gadepalli, South Asia Director,
Institute for Transport and Development Policy
• Dr. Renu Khosla, Director, Centre for Urban and
Regional Excellence, New Delhi
• Dr. Suresh Kumar Rohilla, Centre for Science
and Environment, New Delhi
• Dr. Rajesh Tandon, Founder and President,
Participatory Research in India
• Shri Parth Mukhopadhyay, Senior Fellow, Centre
for Policy Research
• Prof. Shreekant Gupta, Delhi School of
Economics
• Dr. Debolina Kundu, National Institute of Urban
Affairs
Housing for All and Swachh Bharat
Mission
• Shri Ravindra Singh, IAS (Retired), Former
Secretary to Government of India
• Shri H.P. Prakash, Secretary & Commissioner,
RWS & SD, Government of Karnataka
• Ms. Asha Kapur Mehta, Professor, IIPA,
New Delhi
• Shri P Sivaram, Professor & Head, CRI&CFL,
NIRDPR, Rajendra Nagar, Hyderabad
• Shri Munish Gupta, Member, FICCI, National
Committee on S&T and Innovation, New Delhi
• Shri Chandrakant Raipat, CMD, Rameshwaram
Projects, Pvt. Ltd., Ranchi
• Shri Samirendra Chatterjee, Exec. President,
SULABH INTERNATIONAL, New Delhi
• Shri Mahesh Babu, MD, IL & FS Environment,
New Delhi
• Shri Ravi Shroff, Executive Director, Excel
Industries Ltd., Mumbai
• Shri Kartikeya Nitin Desai, Executive Director,
ASHA Impact, New Delhi
• Shri Ashok K Agarwal, CEO, ESSEL Infra Projects
Ltd., Mumbai
• Shri Subhash Chandra Vashisth, Director -
SVAYAM, Jindal Saw Ltd., New Delhi
• Shri Sandip Dutt, GM, Jindal Ecopolis,
New Delhi
• Shri Shreekanth Sreenivasan, Head -Business
Development, KEF Holdings, Bengaluru
Water Resources
• Dr. A.K. Gosain, Professor IIT Delhi
• Dr. Deepak Khare, IIT Roorkee
• A.B.Pandya, Secretary General, International
Commission on Irrigation & Drainage
• Dr. Arvind Kumar, India Water Foundation
Sustainable Environment
• Dr. P. K. Khosala,VC, Shoolini University
• Shri Vipin Chaudhary, DDG, ICFRE, Dehradun
• Shri Ajay Shankar, Former Secretary to
Government, TERI, New Delhi
• Shri Jaison Varghese, Programme Ofcer, CEE,
New Delhi
• Shri Shikhar Jain, Pr. Counselor, Confederation
of Indian Industry, New Delhi
• Shri Ram Muivah, Secretary North-Eastern
Council, Shilong
211
• Shri George C. Varughese, President,
Development Alternatives
• Prof. Manmohan yadav, Professor, IIFM, Bhopal
• Shri Ravi Singh, Secretary General & CEO,
WWF-India
School Education
• Dr. Dhir Jhingran, Language and Learning
Foundation
• Ms. Seema Bansal, Boston Consulting Group
• Prof. Venita Kaul, CECED
• Prof. Neelam Sood, On behalf of NUEPA
• Shri Amit Kaushik, Australian Council for
Educational Research (India)
• Shri Shailendra Sharma, On behalf of Pratham
• Prof. Padma Sarangapani, TISS
• Ms. Jayshree Oza
• Prof. Poonam Agrawal, On behalf of NCERT
• Dr. Vineeta Sirohi, NUEPA
• Ms. Deepa Sankar
• Shri Bikkrama Daulet Singh, On behalf of
Central Square Foundation
• Shri Raj Gilda, Lend-a-Hand India
• Ms. Renu Seth, On behalf of Pratham Second
Chance
• Ms. Aparna Bijapurkar, On behalf of BCG
• Ms. Jyotsana Jha, Centre for Budget and Policy
Studies
Higher Education
• Prof. Furqan Qamar, AIU
• Prof. Sudhanshu Bhushan, NUEPA
• Shri Pramath Raj Sinha, Ashoka University
Teacher Education and Training
• Dr. Santhosh Mathew, NCTE
• Prof. Hrushikesh Senapaty, NCERT
• Prof. Pranati Panda, NUEPA
• Ms. Indu Prasad, On behalf of Azim Premji
University
• Shri Hriday Kant Diwan
• Prof. Disha Nawani, TISS Mumbai
Skill Development
• Director General, CII
• Secretary General, FICCI
• Vocational Training & Skill Development
Specialist, ILO
Public Health Management and
Action, Comprehensive Primary
Health Care, Human Resources for
Health, Universal Health Coverage
• Dr. M.K Bhan, IIT Delhi
• Ms. Sandhya Venkateswaran, BMGF
• Dr. T Jacob John, (Retired) Christian Medical
College Vellore TN Child Health FDN
• Shri NK Arora, The INCLEN Trust International
• Ms. Shamika Ravi, Brookings India
• Shri Anjan Bose, NATHEALTH
Strategy for
New India @ 75
212
• Shri Rajesh Kumar, PGIMER School of Public
Health Chandigarh
• Ms. Sarojini, Sarna
• Shri Yogesh Jain, Jan Swasthya Sahyog Village
PO Gramyan Bilaspur CG
• Dr. Henk Bekedam, WHO
• Dr. Subhash Salunke, PHFI
• Shri Sanjay Zodpay, PHFI
• Shri Jorge Coarasa, World Bank
• Shri Priyanka Saksona, WHO India
• Shri Chandrakant Lahariya, WHO India
NPO-UHL
• Dr. Arvind Kasaragod, Director Medical
Services, India Cloudnine Hospitals
• Ms. Anjula Solanky, Director, CII
Nutrition
• Shri D.S. Swaminathan, ICMR
• Shri Manoj Kumar Singh, MWCD
• Shri Gulshan, MWCD
• Shri Raj Kumar Bhandari, Poshan
• Dr. Ajay Khera, MoHFW
• Ms. Manjula Singh, CIFF
• Ms. Rekha Sinha, Intemadonal Institute of Life
Sciences
• Dr. Basanta Kumar Kar, Coalition for Food and
Nutrition Security
• Ms. Naiyya Saggi, Babychakra
• Dr. B. Sesikaran, NIN
• Ms. Deepika Srivastava, Expert
• Shri C.S. Pandav, ICC
• Dr. J.H. Panwal, MWCD
• Dr. Kapil Yadav, AIIMS
• Dr. Anju Sinha
• Dr. Arun Gupta, BPNI
• Shri Amod Kanth, Prayas
• Ms. Gayatri Singh, UNICEF
• Dr. Rasmi Avula, CGIAR
• Dr. Deepika Chaudhury, World Bank
• Dr. Satish B. Agnihotri, IIT
• Shri Sameer Maheshwari, Healthkart
• Ms. Esha Saraswat, IFPRI
• Ms. Arkalina Dwibedi, FSSAI
• Dr. A.C. Mishra, FSSAI
• Shri Sumit Aggarwal, ICMR
• Dr. M K Bhan, AIIMS
Gender
• Ms. Sanchita Mitra, SEWA
• Dr. Kiran Sharma, WHO
• Dr. Seema Arora, CII
• Dr. Neeta Pradhan, CII
• Ms. Rehana Riyawala, SEWA
• Ms. Kapilaben, SEWA
• Prof. Pam Rajput, Women’s Resource &
Advocacy Centre
• Dr. Ratna Sudarshan, Institute of Social Studies
Trust
• Prof. Mary E John, Centre for Women’s
Development Studies
213
• Ms. Suneeta Dhar, Jagori
• Prof. Ravinder Kaur, IIT Delhi
• Ms. Ena Singh, UNFPA
• Ms. Shobhana Boyle, UNFPA
• Prof. Bina Agarwal, Economist
• Ms. Diya Nanda, UN Women
Social Inclusion
• Justice Shri Eshwaraiah, Former Chairman
National Commission for Backward Classes
• Dr. Sham Singh Shashi, Former DG
Information & Broadcasting, Visiting Professor
Anthropology& Sociology Media and
Journalism, Hindi, IGNOU
• Dr. Tanweer Fazal, Associate Professor,
Associate Professor Center for the Study on
Social Systems, Jawahara Lal Nehru University
• Dr. R.R. Prasad, Rtd. Professor, Centre for
exclusion & Inclusive studies, NIRD, Hyderabad
• Prof. G.G. Wankhede, Former Professor (TISS)
• Prof. Anita Julka, Department of Education of
Groups with Special Needs, National Council of
Educational Research and Training
• Dr. Siddhartha Sarkar, Principal & Executive
Head, Ananda Chandra College of Commerce,
Jalpaiguri
• Shri Javed Abidi, Director, National Centre for
Promotion of Employment for Disabled People
(NCPEDP) & founder of the Disability Rights
Group
• Shri Nipun Malhotra, Co-founder and CEO,
Nipman Foundation
• Dr. Aloka Guha
• Shri G.B. Panda, Former Senior Adviser,
Backward Castes Division, Planning
Commission
• President / Secretary, Bharatiya Adim Jati Sevak
Sangh
• Shri Ashif Shaikh, Director, Jan Sahas Social
Development Society
• Shri R.C. Durga
• Ms. Ruth Manorama
• The Secretary, National Commission for
Scheduled Castes
• The Secretary, National Commission for
Scheduled Tribes
• The Secretary, National Commission for Safai
Karmacharies
• The Secretary, National Commission for
Minorities
• The Member Secretary, National Commission
for Denotied, Nomadic & Semi-Nomadic Tribes
• The Secretary, National Commission for
Backward Classes
• The CEO and Joint Secretary, National Trust
The North-East Region
• Shri Chandan Mahanta, Dean, IIT, Guwahati
• Prof. Sachin Chaturvedi, DG, RIS
• Shri Amitabha De, IIM, Shillong
• Prof. Milindo Chakrabarti, Visiting Fellow, RIS
• Shri R.S.C. Jayraj, Director, Rain Forest Renewal
Institute
Strategy for
New India @ 75
214
Legal, Judicial and Police Reforms
• Shri Suresh Chandra, Secretary Law, Ministry of
Law & Justice
• Prof. S. Sivakumar, Member, Law Commission
of India
• Ms. Anupama Nilekar Chandra, Inspector
General, BPR & D
• Shri Amod Kanth, Founder, Prayas Institute of
Juvenile Justice & Chairman DWSSC
• Shri Shekhar Gupta, Founder, The Print
Civil Services Reforms
• Shri Shyam Bang, Chairman NABCB
• Dr. Sanjeevan Bajaj, CEO FICCI Quality Forum
• Shri P. K. Tripathi, EO & Additional Secretary,
DoPT
• Ms. Vasudha Mishra, Additional Secretary,
DARPG
• Shri B. S. Baswan, Former Chairman UPSC
Committee on Civil Services Examinations
• Prof. Dolly Arora, IIPA, New Delhi
Optimizing the Use of Land
Resources
• Shri Prabhat Kumar Sharma
Strategy for
New India @ 75
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