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LATEST NEWS UPDATES | What the Data Tells Us About 'Sabka Saath, Sabka Vikas' -Anamitra Roychowdhury

What the Data Tells Us About 'Sabka Saath, Sabka Vikas' -Anamitra Roychowdhury

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published Published on May 18, 2017   modified Modified on May 18, 2017
-TheWire.in

The Modi government has struggled to achieve success on crucial development fronts such as farmer incomes and job creation.

Public memory in India is amnesic. Still, it is difficult to forget that Narendra Modi rode to power in 2014 on the plank of promoting development, aptly captured by ‘Sabka Saath Sabka Vikas’. This is not a novel idea in itself as others too have tried to win over voters adopting similar strategies – succeeding sometimes (‘Garibi Hatao’) and failing on other occasions (‘India Shining’). Three years down the line, it’s time to take stock of the deliverables.     

To justify ‘Sabka Vikas’, Modi promised doubling of farm income by 2022, as the sector is home to 47% of our workforce. However, growth in agricultural GDP in the three years after Modi assumed power was 1.7% which is less than half of the sector’s growth in the last three years of UPA-II at 3.6%. This is largely due to two consecutive droughts years in 2014 and 2015 – therefore, the prime minister can be hardly blamed for this.

However, the PM’s policy response to this mounting agricultural crisis is intriguing. His policies mainly took the form of sharing crop insurance premium and directing BJP-ruled state governments (example, UP) to waive agricultural loans. However, benefits of both policies can only be reaped by those who own land and therefore bypasses the most vulnerable sections in the sector namely, agricultural labourers – who are the first to slip into poverty in the face of vanishing livelihoods.

On the other hand, surest way to provide relief to agricultural labourers (for inclusive growth) in drought years is to generate adequate non-farm employment in the rural sector by pumping in money to the Mahatma Gandhi National Rural Employment Guarantee scheme. As Figure 1 above suggests, the government actually reduced allocation to MGNREGA (as percent of GDP) during 2014 and 2015 compared to the immediate past years. It is only in 2016 (Revised Estimates) that the allocation to the scheme has been restored.

This explains the ridiculous rise in MGNREGA wages by Re 1 in many states (Assam, Bihar, Jharkhand, UP and Uttarakhand) and the lowest ever average wage increase in the history of the scheme at 2.7% approved by the Centre in 2017-18.

Please click here to read more.

TheWire.in, 17 May, 2017, https://thewire.in/136618/whatever-happened-to-modis-development/


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