Although India is a labour-surplus economy – with an unlimited number of workers willing to work at a subsistence wage – a paradoxical feature of the labour market is the rising incidence of scarcity or shortages amid a situation of potential plenty. No doubt, this pertains to skilled labour. But when 15 per cent of Indian trucks are idle owing to a shortage of drivers or India Inc is worried...

Vilas Bhagwan Pote grins as he recalls his election as sarpanch of Ralegan Siddhi, Anna Hazare’s village in Ahmednagar district, 11 years ago. “I was the traitor, the bad guy,” he jokes. “I openly defied Anna because I felt he was wrong.” Pote, a Dalit charmakar (cobbler) then in his 30s, had been unhappy as the 2000 panchayat polls drew close. As always, Anna had nominated a new executive body for the...

The political advantage enjoyed by the Congress for bringing the rural job scheme is under threat with five of its states underpaying workers, a revelation that has prompted the leadership against challenging a court order seeking parity between MGNREGA wages and minimum wages in a state.  The Karnataka high court recently ruled that wages under MGNREGA should at least be equal to the notified farm wages. The ruling would result in...

Centre delinks access to welfare schemes from poverty line NUMBER of people who can benefit from government’s welfare programmes is going to swell. Currently, the Central government caps the entitlements under most welfare programmes to those below the poverty line, which is as low as Rs 12/day/person for rural areas and Rs 18/day/person for urban areas. State governments have been opposing this mechanism. In future, the ongoing socio-economic and caste census...

Only in India does redistribution, which keeps the poor and marginalised out of the mainstream of the economy, pass for inclusive growth. In much of the rest of the world, inclusive growth would mean giving the poor and marginalised a direct stake in the economy with fast-growing industries and services absorbing them into gainful employment and, thus, making them true participants and partners in the growth process.  But in India, we...