Policy Challenges

2019-2024
Charting a New Course for India and Navigating
Policy Challenges in the 21st Century
Policy Challenges
2019 – 2024
The Key Policy Questions for the New
Government and Possible Pathways
Rapid urbanisation; growing energy
demands; environmental degradation;
declining agricultural productivity;
weak human capital; generating
productive jobs; new security threats;
and re-positioning India in a changing
global order – India today is at a critical
policy juncture. This document is an
effort to spark ideas and debate on how
India can negotiate these challenges
and build a cutting edge 21st century
policy environment.
Table of Contents
04 Foreword by the Chairperson
08 Note from the President

09 Foreign Policy and National 49 Economy

Security
50 Big Potential, Big Risk: Underachieving
10 India’s Foreign Policy in an Uncertain Indian Capitalism and the Middle Income
World by Shyam Saran Trap by Michael Walton and Noopur Sen

13 Time for Disruptive Foreign and National 57 A Relook at Infrastructure by Partha

Security Policies by Bharat Karnad Mukhopadhyay

18 Need for a Comprehensive National 64 A Clarion Call for Just Jobs: Addressing
Security Strategy by Shyam Saran the Nation’s Employment Crisis by Sabina
Dewan
21 Managing India-China Relations in a
Changing Neighbourhood by Zorawar 71 Back-End First: A National Agenda for
Daulet Singh India’s Agricultural Markets by Mekhala
Krishnamurthy

78 Of Investment and Jobs by Partha

27 Climate, Energy and the Mukhopadhyay
Environment
28 Rethinking India’s Approach to
International and Domestic Climate 83 The Welfare State
Policy by Navroz K. Dubash and Lavanya
84 The Opportunities and Challenges
Rajamani
Confronting India’s Welfare Architecture
34 Beyond Poles and Wires: How to Keep the by Yamini Aiyar
Electrons Flowing? by Ashwini K. Swain
90 Should PM-KISAN and MGNREGS
and Navroz K. Dubash
Co-Exist? by Yamini Aiyar and Partha
39 Clearing our Air of Pollution: A Road Map Mukhopadhyay
for the Next Five Years by Santosh Harish,
95 Schooling is not Learning by Yamini Aiyar
Shibani Ghosh and Navroz K. Dubash
100 The Numbers Game: Suggestions for
44 Regulatory Reforms to Address
Improving School Education Data by
Environmental Non-Compliance by Manju
Kiran Bhatty
Menon and Kanchi Kohli

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105 Federalism 139 Regulation and Resources
106 Towards ‘Cooperative’ Social Policy nderstandin and on i t in ndia and
Financing in India by Avani Kapur Suggestions for Reform by Namita Wahi

111 Bridging the Local: Beyond the 73rd and 145 Protecting Water While Providing Water
74th Amendments by Mukta Naik, Sama to All: Need for Enabling Legislations by
Khan and Shamindra Nath Roy Philippe Cullet

118 Interstate River Water Governance: 149 Safeguarding the Fragile Ecology of the
hi tin the o s fro on i t Himalayas by Shyam Saran
Resolution to Enabling Cooperation by
154 Regulating New Technologies:
Srinivas Chokkakula
Three Central Principles by Ananth
122 The Future is Federal: Why Indian Foreign Padmanabhan
Policy Needs to Leverage its Border States
by Nimmi Kurian
159 Inclusive Citizenship
160 Courts, Tradition and Citizenship by
125 Urbanisation
Shylashri Shankar
126 Multiply Urban ‘Growth Engines’,
165 In Need of Structural Repairs: The Social
Encourage Migration to Reboot Economy
Justice Project by D. Shyam Babu
by Mukta Naik
afe and i ni ed anitation ork ndias
130 Regularizing Unauthorized
Foremost Sanitation Challenge by Arkaja
Urban Industrial Areas by Partha
Singh and Shubhagato Dasgupta
Mukhopadhyay and Eesha Kunduri

135 The Challenge of Indian Cities and

Female Labour Force Participation by
Neelanjan Sircar

Policy Challenges 2019-2024 Centre for Policy Research 3

Foreword

Policy Challenges 2019-2024:

A Foreword

Meenakshi Gopinath
Chairperson of the Board
W ithin the massive electoral mandate for Prime Minister Narendra
Modi’s NDA-II is embedded the corollary of a high threshold of
e pe tations on responsi e o ernan e and effe ti e ad inistration
The sabka saath, sabka vikas, sabka vishwas mantra, needs both policy
and programmatic initiatives that take on board the ‘revolution of rising
expectations’ and ‘aspirational’ India in a rapidly changing domestic and
oba onte t hi e the ha en es are anifo d new opport nities for
effe ti e inter ention do present the se es he i perati e is of o rse
as was said in a different ideo o i a onte t to sei e the ti e and
sei e the ho r

This policy compendium by the Centre for Policy Research (CPR), speaks
pre ise to the iss es at stake for identi es the ha en es and
re o ends inno ati e wa s to address the o i eterans e perts
tho ht eaders and resear hers o e to ether here to wea e theor and
pra is based on s stained e d e perien e and ri oro s data ana sis

These essays are evocative, sometimes even provocative, invitations

to serious and sustained dialogue around the eight core thematic
sters that s ho ars en a e with hese are orei n o i and
National Security; Climate, Energy and the Environment; Regulation and
eso r es rbanisation ono e fare edera is and n si e
iti enship he sheer ran e of iss es and the di ersit of positions
are testimony to the lively debates at CPR that nurture continuous
interrogation of the monocultures of the mind and sustain the centre
as a non-partisan, credible, dynamic and progressive hub of policy
dia o e and resear h

The essays on Foreign Policy and National Security, speak to the challenges
on the path of ndias aspirations to oba in en e and its thr st
towards e pandin ir es of en a e ent whi e bein responsi e to the
se rit on erns of the re ion his wi re ire the sheddin of o der
shibbo eths and so ipsis to ra t a proa ti e assess ent of e er in

4
opport nities in an e panded internationa ro e he gest immediate short-term interventions to engage
a so draw attention to the ha en e of hinas rise with the pressin ha en es of i ate han e both
its increased resource deployment in the South Asian oba and nationa ith the retreat fro the
region and its implications for our ‘Neighbourhood Paris Agreement, the essay on Climate Change argues
irst po i ne essa ar es for the i portan e of for India to play an imaginative regional role and help
ra tin a sensib e and effe ti e hina po i t a s for ead a oa ition of the wi in espe ia with re ard
a rea isti and dispassionate assess ent of how ndian to so ar ener transitions he a so a for in din
and Chinese interests interact in the region including a ore e perts and spe ia i ed resear hers in i ate
candid recognition of the fact that Chinese involvement change negotiations; going beyond the discourse of
in o th sia is ainin ro nd hina is a read seeing climate change agreements as a rich versus
emerging as a security provider for many regimes in poor diplomacy battle and for more robust domestic
ndias nei hbo rhood et another essa on ndia climate change initiatives that address mitigation and
hina re ations opts for a different tra k b pointin adaptation with reater oordination between o ern-
out the particular urgency for India to proactively blunt ent depart ents
hinas he e oni a bitions in sia and pre de its
do ination fro takin root n an e hortation to not Above all, a strong case is made for climate change
shrink fro the possibi it of dep o in hard power considerations to be integrated into the government’s
it calls for the framing of Indian foreign and security de e op ent a enda he erosion of en iron enta
policies that have the potential to disrupt the existing compliance mechanisms and the costs of environmen-
wor d order to ens re its p a e at the hi h tab e on its tal degradation due to industrial and development
own ter s he essa s on nationa se rit hi h i ht the pro e ts are hi h i hted o ether with re o enda-
need to take a comprehensive approach ‘encompassing tions for prioriti in air po tion as a p b i e er en-
domestic and external, economic and ecological cy, these essays represent a coherent vision of practical
challenges, highlighting the inter-linkages and feedback actionable initiatives to make Climate Change and
loops among them to formulate a coherent template n iron ent a po i priorit
for ti dis ip inar and ti se tora inter entions
The premise is that a shrinking domestic vision cannot ndias en iron enta oa s wi on be et thro h
s stain an e pansi e ision abroad a si ni ant re ha of ndias ener s ste his
re ires a shi t in the po i paradi for e e tri it
A critical issue that impacts India’s political economy fro redistrib ti e we faris to prod ti e power
is the d na i of enter state re ations he essa s on rod ti e power strate seeks to pro ote ind stries
Federalism st d the effe ts of federa tensions on so ia with s pport fro the entre and rationa i in the
po i nan in interstate water ooperation and s bsid re i e t a so in o es re isitin the de nition
rban o a o ernan e n inno ati e ontrib tion in of e e tri ation
this segment is an essay advocating for a sub-regional
approach to India’s foreign policy that engages border Essays in the Regulation and Resources segment come in
states in ra tin ndias nei hbo rhood po i he for spirited dis ssion in the onte t of iti ens ri hts
policy, it is argued, is better served by leveraging the is a is and water e o o and te hno o he essa
o ation of border states to o hand in hand with the on land rights based on studies by the Land Rights In-
federa i ation of ndias forei n po i itiative (LRI) of CPR, foregrounds pertinent facts about
the per asi eness of on i t o er and with i ion
The essays on Climate, Energy and the Environment peop e in ndia in on i t o er i ion he tares of
offer far rea hin re o endations and a so s - and and with of a i i ases in ndia bein re at-

Policy Challenges 2019-2024 Centre for Policy Research

Foreword

ed to and or propert disp tes he a ses for this are Urbanisation trends come under sharp scrutiny – based
anifo d in din on i tin aws tip e o er ap- on s bstantia bod of resear h and do ain know -
ping jurisdictions, administrative non-compliance, and ed e that has b i t aro nd this e d he essa s on
di ia penden efor s in de ad inistrati e and urbanisation include an important recommendation to
legal interventions including resolving administrative o e po i awa fro an e istin etropo itan bias
fra entation and rationa i in and aws he hi h i ht the need to re o ni e the di ersit of
urban spaces that constitute India’s urban landscape,
ith the re ent appea b the to iti ens to be o e whi e p shin for an a enda that fo ses on transitiona
sa a io s sers of water the dep etion of this pre io s r rban spa es where o er ha f of ndias ind stries are
resource is assuming greater visibility and impor- rrent o ated and where ind stria de e op ent
tan e he essa on water hi h i hts the risis of water ski de e op ent and abo r re ated po i ies an nd
o ernan e aws and re ations pertainin to the se ferti e ro nd for inno ation n est ents in s a ities
of water a on ai ants are broad skewed a ainst to reate a it obs and de e op ski s for r ra and
a read disad anta ed ro ps with wide disparate rban workers and b i d infrastr t re that boosts the
r es for rban and r ra areas and do not in o e water a it of ife is ad o ated as the wa forward
prote tion he essa akes a ase for r ent refor -
in ar hai aws to address fra ented o ernan e and The current state of Indian cities may also help us un-
above all for the adoption and speedy implementation derstand the ender ap in abo r for e parti ipation
of the fra ework water e is ation he essa on fe a e abo r for e parti ipation draws
on a study conducted by CPR scholars and others to ar-
The third essay is focussed on environmental deg- gue that poor urban infrastructure, including transpor-
radation of cities in the Himalayan mountainous tation is the pri ar barrier to wo ens parti ipation
ones he essa akes ase for a nationa endea o r in the abo r arket his is an i portant ontrib tion
steered by the Prime Minister that ensures sustain- to our understandings of the phenomenon of declining
ab e rbanisation in the o ntains with fo sed fe a e abo r for e parti ipation in ndia
town p annin so id waste ana e ent s stainab e
pilgrimage and tourism, green road constructions, The nation’s macro-economic challenges, employment
re enation of sprin s ke water so r es and hi h risis infrastr t re de it and a ri t ra distress are
a tit de ake prote tion addressed in the essays on the Economy he do ent
warns a ainst the idd e in o e trap that the ndian
Data is emerging as an asset that cuts across multiple economy faces unless certain aspects of crony capi-
se tors etter re ation in de ision akin on ta is within the e ono are addressed his essa
data o ernan e is th s riti a in e an new re o ends a s ew of eas res to refor the e on-
technologies break conventional borders and o de rease the rowin wea th ap and enhan e
boundaries, India needs to develop strategies for better o petition in the arkets
inter a en ooperation he essa on te hno o
explores the imperatives of maintaining the balance his se ent a so identi es ndias ai in infrastr t re
between freein te hno o of ar hai and restri ti e as the weak ink in the e ono and offers inno ati e
licensing regulations and the democratic tenets of approa hes for ta k in the b rea rati and nan ia
the iti ens ri ht to prote t pri a ri hts i pa t h rd es that are ho din the s ste ba k he essa on
assess ent is re o ended before ind tion of new jobs argues for the establishment of a National Em-
di ita and internet te hno o ies p o ent trate with re ar a tion p ans s b itted
b the inistries to be set p t abo e a it a s for ike the abri a a e p e and rip e a a n another
improving employment data in India and investing in essa the weakenin onstit tiona pro isions for the
h an apita prote tion and p i t ent of hed ed astes and
hed ed ribes are dis ssed
o tions to ndias a rarian risis are offered in an
insightful analysis of the shortcomings – both concep- Another essay focuses on the vexed issue of manual
t a and operationa of the efforts to b i d a ationa scavenging and makes important recommendations
ri t ra arket thro h te hno o he essa ai ed at akin efforts to e i inate this pra ti e a re-
advocates for reform in agricultural markets, subsidy a it hese in de in responsibi it and a o nta-
re i es and pro re ent pro esses t a so a s for bi it for the safet and hea th of sanitation workers on
in reased p b i in est ents to enab e rop di ersi a- e p o ers who rrent en o i p nit and s pport
tion so that far ers an ake o p e prod tion and for the fa i ies of sanitation workers transitionin o t
marketing decisions as both climate change and global of an a s a en in
o odit arkets rede ne the nat re fre en and
e tent of o ati it o i ha en es is a initiati e that
attempts to engage policy makers, researchers and
The essays on the Welfare State offer a deep e a ina- on erned iti ens a ike in infor ed ob e ti e and
tion of ndias we fare ar hite t re and the e er in nonpartisan dialogue on the issues at stake for the
strains on it he do ent points to f nda enta o ern ent as the o ntr enters a new de ade
challenges including the excessive tendency to central-
i e and the ne a apa ities of state o ern ents The intention is to both raise the level of discourse
to de i er ser i es nother essa takes a deeper di e on these matters and seek inputs from experts in the
offerin a o parati e ana sis between po i do ain on where ore in depth resear h and
and new a n hed s he e to hi h i ht ana sis is re ired
the potentia of inter inka es
his o pendi is a re e tion of the ontin in
This segment also focuses on the challenges of elemen- collective engagement of CPR researchers and analysts
tary education and the need to refocus the educa- to b i d a bod of redib e s ho ar work that si ta-
tion s ste toward i pro in earnin o t o es in neo s ra ts a new e i on for po i akin t is a so
s hoo s nother essa fo ses on the poor a it of an in itation to o e fro i its and to en a e with
education data systems and argues for urgent reforms possibilities!
in data o e tion and offers re o endations for de-
veloping local data management systems, and making Thank you!
better se of data

he na set of essa s dea with one of the thorniest

issues facing the country since its inception – that
of Inclusive Citizenship n a tho ht pro okin essa
deep ontestations between tradition and indi id a
ri hts are aid bare t e a ines how the o rts and
legislatures are struggling to navigate these extremely
complex challenges using case studies of judgments

Policy Challenges 2019-2024 Centre for Policy Research

Note from the President

India is confronting these challenges against the back-

drop of rowin n ertaint in the oba wor d order
whi h akes o d tried and tested ode s of e port ed
rowth harder to a hie e in the present he tr th
is that the development challenge India faces today
cannot be solved through the models that India has de-
p o ed th s far his is not st abo t in si e rowth
b t abo t ndia for in a new de e op ent dea one
that oes be ond the paradi to fo s ore
e p i it on e itab e and s stainab e rowth

his o pendi of essa s b s ho ars is an

Yamini Aiyar attempt to engage in a dialogue that furthers our
President And Chief Executive understanding of the nature of the current challenge,
de e ops new fra eworks and identi es where
possib e spe i re o endations for pra titioners

T oda ndia is at the sp of a new phase in its

de e op ent tra e tor apid e ono i rowth
of the ast ears has f nda enta a tered ndias
his o pendi is intessentia t draws
on ears of deep ri oro s s ho arship asks dif
estions and ob e ti e assess e iden e to offer
t

e ono so iet and po it t these ains ha e a so a fresh perspe ti e to prob e s o d and new he
bro ht new ha en es isin in o es and in reased ob e ti e as a wa s is to pro oke debate and
so ia aspirations ha e been a o panied with risin discussion in order to enrich policy and deepen our
ine a it persistent weak h an apita ontin ed nderstandin s of rrent ha en es
nder e p o ent ow a ri t ra prod ti it
and increased environmental degradation, giving This document is also a tribute to depth and breadth of
wa to new arenas of so ia on i t espondin to s po i work ro atters of strate i re e an e
these ha en es re ires ndia to ne otiate an – India’s foreign policy and national security to critical
o ten on i tin tensions in o r e ono and po it domestic concerns linked to our economy, environment,
or instan e in reased ener de ands needs to polity and society – regulation, federalism, economic
be ba an ed with de e opin ean ener s ste s po i rbani ation we fare pro ision in si eness
nother e a p e is ndias rban transition whi h this is perhaps one of the few po i do ents that
needs to be shaped in wa s that are both s stainab e address s h a wide ran e of iss es that shape onte -
and responsi e to the differin needs of ndias r ra porar ndia hro h this do ent we hope to offer
and rban pop ations o e p ain ndia fa es the our readers a glimpse of the range of our intellectual
need to invest in improving agricultural productivity engagement across sectors and disciplines but also the
whi e at the sa e ti e transitionin ar e n bers opport nit to e p ore their interse tions
of ndias workin pop ation o t of a ri t re into
non-farm employment in a manner that is responsive a tr ratef to a o ea es whose o -
to the te hno o ed shi ts in the abo r arket it ent to the p rs it of e e en e and wi in ness
To respond to emerging challenges India needs to to seek answers to dif t estions has ade this
b i d new state institit stions t the sa e ti e do ent possib e so a spe ia thanks to s won-
it has to strengthen its capacity to manage basic, derf o ni ations tea that has worked tire ess
everyday tasks from health and education to building and patient in he pin s p t this do ent to ether
infrastr t re s ri e inister arendra odi nd ast b t not the east wo d ike to thank andeep
has re ent stated ndia is ana in st ent r hardwa whose sharp insi hts and aref editin
transitions with a th ent r ad inistration ade this do ent a rea it

8
 Policy Challenges FOREIGN POLICY AND
2019 – 2024 NATIONAL SECURITY

In the current uncertain international system, India requires a foreign policy approach
nimble enough to tackle the unprecedented. It also needs to be forceful enough to
rea i e ndias rowin a bition to be onsidered a si ni ant p a er in the wor d
CPR faculty offers a series of practicable measures for India to play a meaningful role
in upholding the world order; ensure its national security; bring about institutional
refor s ne essar to rea i e its internationa a bition nd t a bene ia
grounds for cooperation with China and develop a more decentralized framework for
subregional cooperation within South Asia.

9
 Foreign Policy and
National Security

India’s Foreign Policy in an Uncertain World

SHYAM SARAN

The foremost foreign policy challenge for the Challenges, Old and New
incoming government will be to adapt to a changing
While dealing with China has always remained one
world order. Even as Western dominance has
of India’s biggest foreign policy challenges, today the
diminished, no power has emerged that is capable
asymmetry in economic and military capabilities
of inheriting its mantle. Therefore, the current phase
between the two sian iants is e pandin rather
of disruption and altered relations among states
than shrinking. Managing relations with China has
is likely to continue. It is also becoming clear that
involved confronting it whenever Indian interests are
the US and China are moving from competition to
threatened but also being willing to work together
confrontation. Balancing relations with these two
where interests are convergent. This has served
o ntries wi be o e ore dif t and ndia wi
India well and may continue to be the template for
have to contend with pressures to join one camp or
the foreseeable future. Currently China has been
another. Against this geopolitical backdrop, the new
presenting a more benign and accommodating face
government will have to fashion a foreign policy that
towards India. This is the result of pressures it is feeling
offers opport nities for e pandin ndias strate i
from the US, not only on trade but also in the realm of
spa e e en as it seeks to ta k e in reasin o pe
security. While China’s current stance is tactical, India
challenges. Some of these are discussed below.
should take advantage of this window to advance

0
its interests wherever possible but without losing Recommendations
si ht of the fa t that the on ter ha en e is to
1. Neighbourhood First: Against this background,
narrow the power gap with its northern neighbour. If
the new government must add substance and energy
the asymmetry continues to grow this will inevitably
to the nei hbo rhood rst po i resh e phasis
constrict India’s room for manoeuvre.
must be laid on regular political level engagement
and on e pandin the densit of e ono i and
Moreover, despite the Middle Kingdom’s changed
trade re ations with nei hbo rs ro i it is a ke
approach, New Delhi will continue to face challenges
asset in promoting economic relations but they also
from it in at least a few aspects of foreign policy. India’s
require investment in both physical connectivity
subcontinental neighbourhood is the most critical for
and the smooth and speedy passage of goods
its national security, and China’s presence and activism
and peoples across borders. India is the transit
threatens India’s dominant position. India is unable
country for all its neighbours and its transport
to match the resources China is able to deploy in the
infrastructure is more than adequate to handle
countries of the region. This trend is unlikely to change
transit traf fro one end of the s b ontinent to
even if China adopts a relatively friendly posture
the other t wi ain ore po iti a e era e is
towards India.
vis its neighbours by becoming the transit country
of choice for them rather than by restricting access.
akistan is n ike to abandon its se of ross border
India’s economic cooperation programmes in its
terrorism as an instrument of state policy though
neighbouring countries do not match China’s, but
there may be tactical remissions. Despite the Indian
the are si ni ant he hi es hee is poor de i er
government adopting a more aggressive retaliatory
on those commitments compared to China. The
policy recently, it is debatable whether this has
new government should set up an autonomous
changed Islamabad’s strategic calculus.
Economic Cooperation Agency to manage all
The Gulf and West Asia remain important for India’s its economic assistance programmes in foreign
ener se rit for the we fare of the si i ion countries, including lines of credit, capacity building
Indians who live and work there, and because sectarian and project assistance. While such a proposal has
on i t in the re ion an ha e spi o er effe ts on been on the table for a few years now, without any
the fra i e ti re i io s fabri of the ndian state action, the changed South Asian dynamic (with
The new government will have to deal with the hina rapid e pandin its footprint ne essitates its
ratcheting up of sanctions against Iran by the US. reconsideration on an urgent basis.
India may have to cut its imports from Iran which is
2. Pakistan: Relations with Pakistan remain hostage
ike to ad erse affe t its re ations with ran his
to its addi tion to ross border terroris epeated
may have severe repercussions: Iran is important to
efforts to i pro e re ations with akistan ha e
India not only for meeting its energy needs but, more
been sta ed d e to terrorist atta ks in i ted on
importantly, because of the stakes involved in India’s
India by terrorist groups aided and abetted by
development of the Chahbahar port on the Iranian
Pakistan’s military and intelligence agencies. As
coast and the Northern highway into Afghanistan and
long as Pakistan enjoys a strong Chinese shield and
Central Asia from it. Iran will also play an important
the US seeks Pakistani support for its withdrawal
role in Afghanistan where a political transition seems
fro f hanistan ndias efforts to iso ate akistan
inevitable with the Taliban regaining a prominent
internationally will have only limited success. On
political role. For the new government both Iran and
the other hand, rising tensions between India and
Afghanistan will be key challenges.
Pakistan bring back the hyphenation between the

Policy Challenges 2019-2024 Centre for Policy Research

two countries and invite meddling by outside powers. level meetings. There may be a perception that Russia
he new o ern ent st nd a wa to brin abo t is irrevocably committed to its virtual alliance with
relative normalcy in relations with Pakistan without China. However, Russia continues to be a major power
giving up the focus on terrorism. There are signs that and is not about to become a subordinate ally of China.
Pakistan is uncomfortable with its heavy, almost Central Asia and Eastern Europe, which it regards as
singular dependence on China. It may be ready its near neighbourhood, are precisely the areas where
to balance this dependence through a measured hinas in en e is e pandin ost isib this annot
improvement of relations with India. The opportunity but be a matter of concern to Russia. Furthermore,
of a summit with Imran Khan at the forthcoming Russia remains a crucial source of high technology
han hai ooperation r ani ation s it a weaponry and military equipment, treating India as a
provide an opportunity to test this proposition. privileged partner. The new government must review
its ssia po i and endea o r to e pand en a e ent
3. China: For the foreseeable future, India is not in with all levels of the Russian state.
a position to sin e handed he k risin hinese
power and in en e herefore it sho d seek to 6. India-US Relations: Despite the unpredictability
be part of a coalition of major powers which share of the r p ad inistration ndia re ations ha e
its concerns about China. The new government been onso idated his is re e ted ost isib in
must continue to strengthen relations with the defen e and o nter terroris ooperation he
US, Japan, Australia and South East Asia as part of challenge for the new government will be in managing
countervailing and constraining Chinese power. India the economic/trade pillar of the relationship, which
has been cautious about its role in the Quad, which has become a contested space over the years. India has
is a grouping of the US, Japan, Australia and India, been a a or bene iar of oba i ation ts e ono
and serves as a forum for security consultations and has seen rapid growth resulting from a more open
cooperation. The new government should embrace trade and investment regime. The temptation to walk
a ore si ni ant ro e for the ad whi e ens rin it back from this must be resisted because this will push
re ains be ow the thresho d of a f ed ed i itar India towards the margins of the global economy,
a ian e stra ia sho d be in ited to the ne t ro nd reduce its political leverage, and put paid to any
of the a abar a a er ise whi h rrent in des prospect of catching up with China.
the US, Japan and India.
7. Strengthening MEA: Compared to other major
4. Engaging the World: Deepening relations with countries of the world, India has an almost skeletal
Europe – particularly with Germany, which is now foreign service. In order to sustain foreign policy and
the most powerful country in the continent – must live up to its ambitions of playing an active global
continue to be high on India’s foreign policy agenda ro e ndia wi need to si ni ant e pand its forei n
even though Europe has been disappointingly unable service corps. Moreover, the budget of the Ministry
to prevent the ongoing fragmentation of the European of terna ffairs ontin es to be pa tr o pared
Union. Africa and Latin America will remain regions to other ministries despite the critical role it plays in
of interest, both for their economic potential and for ana in a aspe ts of ndias e terna re ations t is
imparting a global reach to India’s foreign policy. i perati e that s f ient reso r es are ade a ai ab e
to the ministry to enable it to deliver on its critical
5. Russia: During the past few years India’s relations mandate in a globalized world.
with Russia have weakened despite regular summit

2 India’s Foreign Policy in an Uncertain World

 Foreign Policy and
National Security

Time for Disruptive Foreign and

National Security Policies
BHARAT KARNAD

e era e a trends are isib e in internationa coalition with other similarly encumbered nations,
affairs on the sp of the third de ade of the st and b e p orin new se rit i itar ooperation
ent r ter a tri ion do ars spent on the ear agreements. There is particular urgency in Asia to
old war with the Taliban in Afghanistan following a blunt China’s hegemonic ambitions and preclude its
si i ar a o nt e pended in ra and ria the domination from taking root.
is drained of its wealth, stamina and will for military
confrontations of any kind. A reactive and retreating
State of Play
America under President Donald Trump, besides
generating unprecedented levels of uncertainty and nfort nate ndia nds itse f on the wron side of
an iet has a ent ated the onditions of n s a these trends in the main. This is because it has, in the
in the internationa s ste e ond with the o d new i enni a e erated its efforts to oin the
certainties gone, traditional alliances (North Atlantic very same nonproliferation regimes and cartels that
reat r ani ation tradin re i es rans a i had victimized it all along. Worse, by sidling up to the
artnership s he es of re iona pea e han hai US and virtually outsourcing its strategic security to
ooperation r ani ation and te hno o and Washington, India’s historical role as prime balancer in
supplier cartels (Missile Technology Control Regime, the internationa ba an e of power set p o rtes
ear pp iers ro p et a are a a ike in disarra its hoar po i ies of nona i n ent and its atter da
their concerns are now matters of contestation with avatar, strategic autonomy – has been imperiled. This
China staking claim to the pole position vacated by the is at a time when doubts about the US commitment
nd na these de e op ents are o pe in to other countries’ security have increased along with
major countries to try to protect themselves the the apprehensions of allies and friends. With security
best they can by handling things on their own, in made a transactional commodity by the Trump

3
 Foreign Policy and
National Security

administration, treaty alliances have been weakened, er as a tit for tat eas re for ei in s issi e ar in
unsettling West European and Far Eastern states of Pakistan, giving the Chinese manufacturing sector
traditionally close to the US. ndias trend b kin unhindered access to the Indian market through a mas
policy, in the event, will only cement the growing sively unfair and unbalanced bilateral trade regime,
perceptions of the country as unable to perceive its etc. On the other hand, it has treated Pakistan, a weak
own best interests and to act on them. Its downgrade, ankin o ntr as a f bore se rit threat when
as a result of its more recent strategies, to the status realistically, it is only a military nuisance. This strategy is
of a subordinate state and subsidiary ‘strategic at the ore of ndias e terna tro b es t has pra ti a
partner’ of the US means that India will have restricted incentivized Beijing to desist from peaceful resolution
strategic choices. Its foreign and military policies will of the border dispute. It has also undermined India’s
therefore lose the freedom and latitude for diplomatic credibility and credentials as ‘security provider’ to and
manoeuvre that they have always enjoyed. strate i partner of a host of sian ittora and offshore
states fearful of an ambitious and aggressive China, as
h s the i i ian n ear dea for a pra ti a well as complicated the country’s attempts at obtaining
purposes, signed away India’s sovereign right to a tier of friend nations aro nd it as b ffer
resume underground testing and froze its nuclear
arsena at the s b ther on ear te hno o e e tops t r threat per eption has a so eant a
as the f sion test was a d d reein to the lopsided Indian military geared to handle Pakistan but
o isti s han e e orand of ree ent and incapable of defending well against China, even less
the Communications Compatibility and Security of takin the ht to the hinese eop es iberation
ree ent the so a ed fo ndationa a ords r on and air and distant seas it is a so
wi respe ti e i per it the to sta e its i itar laughably unprepared for future warfare featuring
forces out of Indian bases and embroil India in its wars ber pre e ption re ote ontro ed ar ed drone
in the e tended re ion and ii to penetrate the ost swarms, robotic weapons systems managed by
secret Indian communications grid, including the rti ia nte i en e spa e based weapons p atfor s
nuclear command and control network. and ean i ro ther on ear bo bs n the onte t
moreover, of a recessive foreign policy and a military
The Indian government’s eagerness to cement the that seems unable to wean itself away from imported
partnership is astonishin onsiderin the tr st de it armaments, it is almost as if the Indian government
evident in a long history of duplicitous US behaviour and armed services have given up on national security.
and policies. By clinging to a feckless and demanding his bewi derin state of affairs is in r ent need of
ndias pro e as a er e independent state has drastic overhaul and repair.
taken a beating, distanced the country from old friends
such as Russia (which is pivotal to balancing China
and the and ran entra to ndias eostrate i
Geopolitical Vision and Strategy
on erns in the f f hanistan and entra sia ost Strong nations in the modern era have transitioned
the nation its diplomatic elan, and has seriously hurt into reat powers not on thro h e pansi e nationa
vital national interests. isions b t a so ore si ni ant b p rs in po i ies
disruptive of the prevailing order and multilateral
Placating China is the other imprudent theme that re i es the had no hand in reatin ndia in the st
Indian foreign policy has latched on to. It has molly century, on the other hand, seems content with the
coddled its most dangerous adversary and compre e istin internationa s ste eas rin its forei n
hensively capable rival in Asia with giveaways – such policy success in terms of entry gained or denied in
as non se of the ibet and aiwan ards refrainin on eries of internationa power e rit o n i
fro n ear issi e ar in states on hinas periph and trade and technology cartels (Nuclear Suppliers

4 Time for Disruptive Foreign and National Security Policies

 Foreign Policy and
National Security

ro p issi e e hno o ontro e i e et n in hed in ei in s i itar options and affe t

other words, it covets a place at the high table on terms hinas e ono i e pansi eness ikewise the
set by other countries. It is not a mistake made by China US’s importance to international security has to be
or the US (or, to go back in history, Elizabethan England, whitt ed awa he adri atera apan ndia
Germany, Imperial Japan, the Soviet Union and now stra ia proposed b apans hin o be to ontain
adi ir tins ssia he ndian o ern ent is hina in the ndo a i is prob e ati owin to the
hampered by its mistaken belief that upholding the centrality accorded the capricious US. India could
current regional and international correlation of propose a different set p a odi ed adri atera
for es and e hanis s of order and stressin its so t or ‘Mod Quad’ with India, Japan, Australia and the
‘civilizational’ power, will make the country great. eadin ittora and offshore states of o th ast
sia resistin hinas o er ordship and disp tin
ndia with its an in r ities is in no position to its claims in the South China Sea, with a cooperative
undertake system disruption by itself.3 For India to rise Taiwan accorded, to start with, observer status.
as the premier Asian challenger to China and as the his wo d at on e de ne the strate i eopo iti a
other e ono i po iti a i itar power node in the fa e off between ri and sia and a he e oni
continent in the shortest possible time – which should ‘heartland’ China, and reduce the uncertainty
be the legitimate national aim and vision – requires attending on America’s security role (given that
a s bt e b t te in approa h t needs a do b e the US and China, owing to their close economic
pronged strategy. One prong should stress absolutely and tradin inks are inseparab e od ad wi
reciprocal positions and policies. Thus, Beijing’s clarify the strategic calculi of member states, while
insistence on ‘One China, two systems’ should be met encouraging the US to contribute militarily to the
with a ne ndia on ept o the non a eptan e e tent it wants to at an ti e b t as an o tside part 5
by Beijing of all of Jammu and Kashmir (including
the akistan o pied portion as ina ienab ndian and od ad are e tre e pra ti ab e eo
territory should lead to formal recognition of and political solutions to share the cost, divide the dan
re ations with aiwan it sho d a so spark off ew er and enerate s ner fro the wide spe tr
e hi s wor d wide ad o a of a free ibet and a free capabilities, singly and together, of the member states
East Turkestan, and of campaigns against ‘cultural in these two collectives. At the same time, they would
genocide’ and ‘ethnic cleansing’ in Tibet and Xinjiang.4 stretch China’s economic and military resources and
And China’s nuclear missile arming of Pakistan should, minimize the consequences of ambiguity attending
even if belatedly, trigger India’s transferring strategic on the US role. These new arrangements adhere to the
missiles to the states adjoining China on land and sea ti e tested prin ip e of ision shapin strate b t
to ensure that, like India, China too is permanently geography driving it, which makes for cohesion and
strate i a dis o ted sense of purpose. BRIS and Mod Quad will enable their
member states to be less inhibited in cooperating with
a strin in hina sho d a so in o e eta each other to deal with the overarching security threat
eas res to ar e o t separate oose and spe i a posed by China, but without the intimidating pres
anti hina se rit oa itions fro the two i portant ence of the US (which, typically, pursues its own inter
ro ps ndia is part of ra i ssia ests at the e pense of an oa ition it is a part of he
ndia hina o th fri a is an entit do inated wi insti in the ndian o ern ent s e terna o t ook
e ono i a and trade wise b hina his is an o t o es oriented o petiti e bent t a res t
something that arouses wariness in the other three for instan e in ettin the east west an a ekon
countries, which can be mobilized to form a smaller, onne ti it pro e t as a ri a to hinas north so th
infor a se rit ooperation inded oa ition et oad nitiati e off the ro nd 6
ra i ssia ndia o th fri a t wi assist

Policy Challenges 2019-2024 Centre for Policy Research

 Foreign Policy and
National Security

But BRIS and Mod Quad leave Pakistan out of the to territorial defence and tactical warfare are the Indian
reckoning. Pakistan is strong enough to be a spoiler armed services that they have paid scant attention to
and, in cahoots with China, pose a substantial problem. strategic objectives and to the means of realizing them.
ore than ears of tension and on i t with ndia The political leadership, for its part, has shown marked
haven’t helped. For a lasting solution it is essential lack of interest, and failure to articulate a national
to break p the akistan hina ne s he i itar vision and to outline a game plan and strategy. It has
palliative for terrorist provocations – air and land strikes chosen the easy way of relying on the armed services
– will only drive Islamabad deeper into China’s camp. professiona to do the ri ht thin b profferin the
A Kashmir solution roughly along the lines negotiated right advice – which they haven’t.
with enera er e sharraf in that ri e
Minister Imran Khan has said Pakistan will accept, is a reakin the akistan hina ne s is an i perati e
reasonable end state to work towards.7 But India can t re ires the ndian o ern ent to rst seed a
bri ate s h an offer with po i ies to o opt akistan conducive political milieu by making certain safe
a on with ndias other s b ontinenta nei hbo rs unilateral military moves. What the Pakistan Army
economically, by means of trade on concessional terms, most fears is India’s three Strike Corps; if this ‘threat’ is
and easy credit and access to the Indian market for denatured, a milieu with enormous peaceful potential
manufactures and produce. This will obtain the goal can be created. Considering the nuclear overhang and
of unitary economic space in the subcontinent and zero probability of the Indian government ever ordering
a the fo ndations for a pa i ed o th sia the a war of annihilation – which is the only time when
rst step in ndias on o erd e a hie e ent of reat these ar o red and e hani ed for ations wi ht
power. Such actions should, however, be preceded by f ti t three orps are wa in e ess of need he
se era ni atera and risk a erse i itar initiati es an be re onstit ted and the reso r es shi ted to for
o t ined ater to estab ish ndias pea ef bona des a single composite corps adequate for any conceivable
and to denature the Indian threat that Pakistan Pakistan contingency. The rest of the heavily armoured
perceives. Simultaneously, prioritizing strategic and units can be converted to airborne cavalry, and to
e peditionar i itar apabi ities a ainst hina and i ht tanks with en ines opti i ed for hi h a tit de
for distant operations jointly with friendly states in the onditions three offensi e o ntain orps an thereb
Indian Ocean Region and in Southeast Asia will secure be e ipped to take the ht to the on the ibetan
ndias e tended se rit peri eter Plateau. The nuclear backdrop can likewise be changed
for the better b ndia re o in its short ran e n ear
missiles from forward deployment on the western
National Security Policy Priorities border and perhaps even getting rid of them altogether,
Lack of money has never been the hitch. Rather, the be a se hinter and based issi es an rea h akistani
problem has been and continues to be the misuse of targets with ease. These two moves made without
nan ia reso r es b the three ar ed ser i es with demanding matching responses will cost India little
their fa t e pendit re priorities ntent on e ippin in terms of security, establish a modicum of trust,
and sustaining inappropriate force structures geared pers ade akistan of ndias oodwi and on r
to the lesser threat, they have squandered the colonial China as the Indian military’s primary concern. It will
e a of e peditionar and o t of area operations hasten normalcy in bilateral relations.
Consequently, they have shrunk greatly in stature even
as they have increased in size. Persisting with thinking Tackling China at a time when it is widening the gap
of akistan as the ain threat on a ter it redib with India in all respects necessitates India using the
eased to be one post the war has res ted in an playbook the Chinese successfully used against the
ndian i itar ab e to ht on short ran e short d US, that Pakistan has used against India, and North
ration, small and inconclusive wars. Indeed, so geared Korea against America, when facing an adversary with

Time for Disruptive Foreign and National Security Policies

 Foreign Policy and
National Security

a marked conventional military edge. It means revising prioriti e n ear powered ba isti issi e rin and
the nuclear doctrine to emphasise Nuclear First Use atta k s b arines and a s rfa e eet of tip rpose
and dep o in weapons to ake this stan e red frigates. The Indian Air Force needs to radically cut the
ible. Emplacing atomic demolition munitions in Him di ersit of o bat air ra t in its in entor rationa i e
alayan passes to deter PLA units ingressing in strength its for e str t re and strea ine its o isti s set p
across the disputed border is one tripwire. Another is his wi be fa i itated b i itin the eet to st three
to declare that any forceful Chinese military action that t pes of air ra t the ti ro e p raded
rosses a ertain nde ned thresho d a a to ati a to s per khoi on ration in the strike and air
tri er the rin of anisterised edi and on superiority role and progressively enhanced versions
ran e ni issi es now apab e of a n h on a n h of the indi eno s e as i ht o bat air ra t for air
and a n h on warnin dditiona the ar e n bers defen e the fo ow on d an ed edi o bat
of Chinese missiles positioned in Tibet should be seen ir ra t for on er rea h and bi er p n h and ease
as the third nuclear tripwire. As there is no technology b in s adrons of a k a k strate i
to reliably detect and determine the nature of incoming bomber from Russia as the manned, recallable, vector in
warheads an issi e res wi reasonab ha e to the country’s nuclear triad.
be ass ed to be n ear warheaded h a post re
leaning towards action will create precisely the kind of o iti a the ost dif t po i de ision for the
uncertainty about the Indian reaction and response that government will be to resume nuclear testing. This
will bolster its deterrent stance. is absolutely necessary to obtain tested and proven
ther on ear weapons of different power to ie d
orbitant pri ed air ra t arriers are naffordab e ratios. India has got by with a suspect thermonuclear
and, in the age of hypersonic and supersonic missiles, a arsena for ears t is ti e ndias strate i deterrent
military liability. The Indian naval budget should instead acquired credibility.

END NOTES

An unreliable US, in fact, so concerns its NATO allies that the French defence minister Florence Parly in Washington asked a little plaintively,
‘What Europeans are worried about is this: Will the U.S. commitment [to NATO] be perennial? Should we assume that it will go on as was
the ase in the past ears ee ren h defense hief estions o it ent to RadioFreeEurope, Radio Liberty ar h
https www rfer or a fren h defense hief estions s o it ent to nato ht
Bharat Karnad, Why India is Not a Great Power (Yet) ew e hi ford ni ersit ress
3. or a detai ed ana sis of its ario s in r ities that pre de ndias be o in a reat power an ti e soon see arnad Why India Is Not a
Great Power (Yet).
4. China sees itself as the main protector of Pakistan’s sovereignty and territorial integrity. Visiting Islamabad during the Pulwama crisis, the
forei n inister an i de ared o atter how thin s han e in the wor d and the re ion hina wi r s pport akistan pho d
in its independen e and territoria inte rit and di nit ee tirtho atranobis hina r with akistan sa s ei in as s a abad
raises Kashmir in top talks’, Hindustan Times ar h https www hind stanti es o wor d news hina r with pakistan
sa s bei in as is a abad raises kash ir in top ta ks stor k w h ht
5. Bharat Karnad, ‘India’s Weak Geopolitics and What To Do About It’, in Bharat Karnad, ed., Future Imperilled: India’s Security in the 1990s and
Beyond ew e hi ikin
6. Bharat Karnad, Staggering Forward: Narendra Modi and India’s Global Ambition ew e hi en in ikin h
7. tia h ad so tions a ai ab e to ash ir iss es sa s ak ran han Hindustan Times e e ber https www hind
stanti es o wor d news so tions a ai ab e to kash ir iss es sa s pak p i ran khan stor n sp p ht
Karnad, Why India is Not a Great Power (Yet), ch. 5.
harat arnad hi tin the ear e rit o s to hina in ie tenant enera in h and ie tenant enera a a eds
India’s Military Strategy in the 21st Century ew e hi entre for and arfare t dies and b ishers arnad Staggering Forward,

Policy Challenges 2019-2024 Centre for Policy Research

 Foreign Policy and
National Security

Need for a Comprehensive National

Security Strategy
SHYAM SARAN

In the recent general elections, national security has possesses no mechanism that permits it to learn from
emerged as a major political issue. However, the its e perien es d ho is a so ne e ts the broader
discourse over national security has been limited to po iti a so ia and e ono i onte t within whi h
dea in with spe i se rit re ated episodes s h spe i episodes st be o ated and nderstood
as terrorist attacks at Pathankot, Uri and Pulwama on
the ine of ontro with akistan the stand off with A modern state confronts multiple and simultaneous
hinese for es on the ndia h tan hina border challenges across several domains. National security
and the security operations in the disturbed state of annot be on ned to the se of the states oer i e
Jammu and Kashmir. A holistic discussion of India’s power to o er o e do esti and e terna threats or
national security rarely occurs in the public space e a p e threats to do esti pea e and stabi it a
or even within the government. The Indian state arise fro e ono i and so ia rie an es knee
does not possess an overarching national security jerk reaction may leave these grievances unaddressed
strate that o prehensi e assesses the whi e the se of oer i e power e a erbates rather
challenges to the country’s security and spells out than a e iorates the sit ation or instan e e t
po i ies to dea effe ti e with the of o rse s h win e tre is in ndia is rooted in the persistent
a strate st be e e ted within the para eters e p oitation of triba pop ations
laid down by the Constitution of India and the
country’s democratic political dispensation. In the Similarly, the vulnerability of our borders is linked
absence of an overall strategy, the state relies on ad to a ar e s a e s in and ontraband trade
hoc responses of questionable utility. Moreover, it that permits channels through which terrorists and

8
 ri ina s nd eas a ess h threats annot be dea t be grossly inadequate. A critical aspect is that in a
with solely through enhanced military capabilities democracy like India, the state’s use of advanced digital
without addressing the drivers of illegal trade. It is technologies for surveillance and intelligence gathering
recognized that the prolonged use of subsidies for must not violate the citizens’ right to privacy and
ostensibly social welfare purposes creates arbitrage freedo of e pression here is a trade off between
opport nities for ross border s in h enhanced security and the citizens’ rights guaranteed
ri ina a ti ities o ten entren h powerf a a by the Constitution, and this must be clearly spelt
groups with close links to politics. While groups of this o t for the peop e of the o ntr and we onsidered
sort constitute a serious threat to domestic security, solutions put forward. National security must not
the solution lies as much in the economic domain as be o e a sti ation for a s r ei an e state he
in strengthening the state’s law and order machinery. danger of relying on ad hoc responses is that they may
he wi need to a know ed e s h ross do ain cumulatively lead to a predatory and authoritarian
linkages and policy interventions. state that i its the e er ise of de o rati ri hts he
NSS must deal with this dilemma upfront.
For a modern state operating in an increasingly
globalized world, the line between what is domestic e hno o i a han e and eopo iti a shi ts are
and what is e terna is be o in in reasin b rred also impacting India’s nuclear security. The country’s
or e a p e terroris is a threat to do esti se rit nuclear deterrent must deal with the challenge of
b t a ha e e terna inks ea in with terroris two n ear ar ed nei hbo rs hina and akistan
may require not only domestic interventions but also Furthermore, the nuclear domain is becoming closely
a tion on the e terna front ss es re ated to water inter inked with ber and spa e re ated apabi ities
security may involve dealing with neighbouring The development of India’s nuclear deterrent must take
countries with which India shares its major rivers. Thus into account the impacts of such technological change.
a o bination of do esti and e terna inter entions The overall nuclear security environment is also being
may be necessary. It is only within a comprehensive affe ted b eopo iti a shi ts with the ap between
that s h o p e inter re ationships between the US and Russia on the one hand and China on the
do esti and e terna di ensions an be ana sed and other red in si ni ant he o der n ear order
coordinated policy responses formulated. an hored in bi atera ssia ar s ontro arran e
ments is now unravelling because China remains
e i e in a te hno o dri en wor d new te hno o ies outside these arrangements. A new nuclear order is
such as the Internet and digitization are enabling becoming essential as we move into a world of multiple
powerful tools for states to enhance national security nuclear states. India will need to determine what role it
but also creating new and serious vulnerabilities should play in the shaping of this new nuclear order.
and security risks. Cyber security has become a
major concern and it is only through developing Ecological degradation and climate change have
advanced technological capabilities that a state has si ni ant i pa ts on nationa se rit here a
a chance of defending itself against cyber attacks. be direct consequences of the melting of glaciers on
he wo d enab e the identi ation of riti a the dep o ent of troops at hi h a tit de o ations
infrastructure that may be vulnerable to cyber attacks, on ndias o ntaino s borders ea e e rise as a
and the development of human resources capable of result of global warming may inundate naval bases
identifying attacks and protecting and restoring critical a on the oasts here a be ar e s a e i ration
systems. Anticipating cyber attacks and hardening of pop ations fro ow in oasta p ains towards
systems against them become ever more necessary higher ground, and this may lead to social disruptions
as economic and governance activities increasingly and economic distress, undermining domestic security.
rely on digital technologies. Ad hoc responses would Therefore, the NSS must anticipate the consequences

Policy Challenges 2019-2024 Centre for Policy Research 9

 of ecological degradation and climate change, and disciplines who could consider India’s national
formulate coping measures. security in its multiple dimensions. In a democracy,
an sho d be iti en entri and st re e t the
nother o t ne e ted di ension of ndias nationa values and beliefs of the people; at the same time,
security that must be integrated within the NSS is it must seek to raise public awareness of and shape
strategic communications. It relates to the indispensa public perceptions about national security issues. The
ble need, particularly in a democracy, to shape public proposed NSS must take the Constitution of India as
perceptions through constant and consistent public its guide and its objective should be the safeguarding
outreach and to provide a channel for public opinion or and consolidation of India’s democracy. This approach
feedba k his wo d enab e the o ern ent to e p ain wo d for e a p e re e t intr si e o ern enta
its policies, garner public understanding and support, intrusions into the lives of ordinary people, violating
and review and adjust policies on the basis of feedback their rights enshrined in the Constitution.
re ei ed his has be o e a far ore dif t and
o p e ha en e d e to the spread of so ia edia In every domain of national endeavour there must be
the phenomenon of fake news, and the instant nature p rs it of e e en e and hi h standards to enab e
of news gathering and dissemination. Governments India to compete successfully in a highly competitive
need to stay ahead of the news cycle, establish credi and oba i ed ands ape s ands of e e en e annot
bility as a source of authentic and reliable information, be sustained in an ocean of mediocrity and low
and shape public opinion rather than be reactive all a it his need not on i t with proper desi ned
the time. National security may be adversely impacted po i ies for af r ati e a tion desi ned to red e
by the spread of false news by hostile elements within and e ent a e i inate the onse en es of on
and outside the country using social media. This will standin so ia and e ono i disabi ities s ffered b
require strong and advanced cyber capabilities, which sections of India’s citizens. What is critical is the state’s
may have to be constantly upgraded to keep pace with apa it to desi n e e te and e a ate inter entions
rapid technological advance. in different do ains and for this the instit tions and
processes of governance may need to be altered and
An NSS for India needs to take a comprehensive strengthened. New institutions may be required to
approa h en o passin do esti and e terna and deal with newly emerging challenges. This, too, must
economic and ecological challenges, highlighting be included in the NSS.
the inter inka es and feedba k oops a on the
and on that basis formulate a coherent template for re io s e er ises ndertaken to pro ote nationa
ti dis ip inar and ti se tora inter entions security could serve as useful reference material for
Such a template would serve as a guide for a whole of the NSS. These include the Kargil Review Committee
government approach, ensuring that intervention in report the eport of the aresh handra
any one domain does not contradict or even negate ask or e on e rit and the do ent
intervention in another domain. It is only by having a entitled ‘Building Comprehensive National Power:
big picture constantly at hand that contradictory and Towards an Integrated National Security Strategy’
wasteful policies can be avoided. We should move prepared by the National Security Advisory Board
towards a pattern of governance where interventions in n the ar i report has been ade p b i
one domain reinforce interventions in other domains. It is recommended that these reports and the NSS
prepared by the new government should be public
Drawing up an NSS for India must be a key item on documents and open to public debate and review. A
the agenda of the new government. This may be we infor ed i i ant and ed ated p b i opinion is
tasked to a ro p of e inent persons fro different the best assurance of national security.

20 Need for a Comprehensive National Security Strategy

 Foreign Policy and
National Security

Managing India-China Relations

in a Changing Neighbourhood

he i portan e of ndia hina re ations in ndias o era effe ti eness in internationa instit tions eopo iti a
foreign policy cannot be overstated. Not only is China’s security and economic transformation. The persistence
rise changing Asia’s geopolitical landscape and the of an nreso ed border disp te in this onte t on
global balance of power, its involvement in South Asia reinfor es the i portan e of ra tin a sensib e and
in recent years has augmented its position from being effe ti e hina po i s ndias forei n se retar
India’s largest neighbour to an engaged great power to d e bers of the ok abha in ebr ar e
across the subcontinent. Unlike in the Cold War era, cannot see the relationship with China the way we
when a ba kward hina had been on ned to a i ited perhaps saw it thirt ears a o or e en ears a o
role in South Asia’s security and economy, four decades both countries share the belief that this relationship
of reform and opening up to the world have equipped is s ated to be o e one of the de nin re ationships
the o ntr with the nan ia wea th ind stria of this ent r ertain in o r re ion One of the
strength and military capacities to pursue, should it areas that India’s China policy needs to focus on is the
choose to do so, an ambitious role in South Asia. nei hbo rhood be a se it is the arena where ndia
China competition and mistrust have tended to be
Thus, India’s China policy choices are profoundly most acute in recent years. If not managed sensibly, it
consequential for the Indian government. It entails could undermine India’s interests and regional position,
opportunities as well as risks with implications across along with unravelling the prospects for cooperation on
a gamut of issues such as India’s global status and other important fronts.

2
 Foreign Policy and
National Security

The Policy Challenge to match its aspirational rhetoric. Despite possessing

far greater economic strength, and considering the
For the past decade, India and China have been
scale and ambition of the BRI, China too has been
working according to rival geopolitical visions.
unable to make a meaningful regional impact. Recent
Although China has been a direct neighbour of South
e perien e has pro en that ir entin ndia
sia and ndia sin e it is on in the past de ade
given its geopolitical centrality and market size – is not
that Chinese policymakers have reformulated their
a viable path for any sustainable connectivity plan for
regional policy to pursue more sustained political
the subcontinent.
and economic relationships with several states in the
subcontinent and the Indian Ocean littoral. Following
Yet, unbridled competition poses grave risks for a
i inpin s forei n po i ide ines of and
fragmented subcontinent in the coming decades,
China has adopted a policy aimed at enhancing the
a future that would undermine Indian interests far
development options of its neighbours as well as
more than Chinese. Transforming South Asia must,
promoting new lines of communication or corridors
therefore, be predicated on tapping India’s unique
with its southwestern periphery. Much of this impetus
advantages: the size of its domestic market, which
has been pro ided b the e t oad nitiati e
makes any geoeconomic plan’s success dependent on
– a grand connectivity plan that envisions a network
India’s participation and involvement, and the overt
of states economically linked to China through a
and s bt e eopo iti a in en e the o ntr ontin es
ariet of o er ia nan ia re ationships and
to wield across the neighbourhood; it must also
ind stria pro e ts o th sia is one of e re ions
e era e hinas nan ia and ind stria apabi ities to
or s bre ions identi ed as areas to e pand hinas
construct infrastructure and connectivity capacities in
geoeconomic footprint.
the neighbourhood.

in e the s ndia too has onte p ated wa s

In short, both countries have strengths that are not
to reconnect with its South Asian neighbours and
being fully leveraged to advance an open subregional
inculcate a spirit of integration and interdependence
geoeconomic order. What has been missing from the
in the subcontinent. While this process has found
po i dis o rse is an atte pt to e p ore a ternati e
bipartisan political appeal, the ideas, resources and
futures and more constructive frameworks; there
institutions to advance meaningful regional integration
have been no attempts to visualize the changing
remain at a fragmentary level. Nothing underscores the
regional setting in ways that would still secure vital
meagre level of interdependence than the following
Indian interests, advance stability and deepen regional
stark statisti s ere of o th sian trade is intra
economic development, while also enabling China to
re iona intra re iona in est ents onstit te ess
pursue its engagement with South Asia.
than of tota in est ent in the s b ontinent

Although India and China are today seen as regional Intersection of Indian and Chinese Interests
competitors, neither power has succeeded in
he rst step in s h an e er ise wo d be to ndertake
implementing its vision fully. Arguably, the main
a brief assessment of how Indian and Chinese interests
reason has been the inability of both countries to
interact in the region. What can we observe about
sit ate their ri a isions in a re ion wide approa h
China’s involvement in South Asia? China usually
India has not fully come to terms with the utter lack
works with whatever regime is in power and avoids
of intra re iona tradin and infrastr t re networks
interfering in domestic political battles. Beijing’s
nor has New Delhi been able to allocate adequate
main priority is protecting its economic investments.
resources and capacities or adapt or renew institutions
In some cases where China has deeper geostrategic

22 Managing India-China Relations in a Changing Neighbourhood

 Foreign Policy and
National Security

interests, particularly in Pakistan and Myanmar, it social stability. Third, a major faultline would be the
has cushioned adverse reaction from the US towards militarizing of China’s regional connectivity projects.
these states. Hence, in limited ways, China is already Such a hypothetical scenario would pose military
a security provider – certainly at the political and security challenges to India as well as place China in
diplomatic levels. And this factor shapes how many a position to act as a direct security provider in the
neighbourhood regimes now perceive China: as subcontinent, an outcome that would have profound
potential insurance against possible Western pressure consequences for the geopolitics in the region.
and as a hedge against uncertainty about Indian
positions in times of domestic crises in these states.
Policy Recommendations
There is little doubt that China’s engagement has
improved the bargaining position of India’s neighbours One of the key geopolitical challenges for Asia over
is is ndia and other a or e terna powers the ne t de ade is whether and how a risin ndia and
a rising China can learn to be sensitive to each other’s
India and China’s regional policies suggest that there core interests while pursuing engagement with each
are both overlapping features as well as geopolitical other s nei hbo rs n the pri infor a s it
faultlines at play. Both neighbours have a common in Wuhan, both political leaderships had sought to
interest in i ana in non traditiona threats s h arrest the escalating tension and competition in the
as terroris e tre is separatis and distress re ationship hi e their differen es and disp tes
migration that impact regime stability of smaller remain unresolved, both sides have come to recognize
o th sian states ii pro otin se ar and stab e the osts and disad anta es of a se i hosti e and
re i es iii pro otin open sea anes and ens rin contentious relationship. In particular, building trust
the se rit of their ariti e trade ro tes and i and ‘strategic communication’ in the neighbourhood
geoeconomically connecting South Asia with East Asia. have now been recognized by both leaderships as
shared policy goals.
t the sa e ti e there are so e ke differen es in
India and China’s regional approaches. First, China Capacity building and assisting weak states:
appears to be ore interested in inter re iona Although India and China have a common interest
interdependence and connectivity, while India is in re i e stabi it both sides ha e et to e p ore
mainly interested in subregional integration. Put structured cooperation on this front. One form such
another way, China seeks to connect South Asia with cooperation could assume is joint assistance of weak
China; while India seeks to bring South Asia closer states through coordinated capacity enhancing
from within as well as more connected with Eurasia projects and training programmes. Indeed, the April
and South East Asia. Second, there is a large measure ta ks ha e aid a fra ework for ndia hina
of uncertainty about the geopolitical implications p s one that is ndia hina ooperation in third
of the BRI in South Asia. India’s main concern is that countries in the region. n tober ndia
deeper connectivity between India’s neighbours and and China launched a programme to train Afghan
China will reorient the foreign policies of South Asian dip o ats as an initia step in a on ter effort for
states in ways that could eventually undermine Indian tri atera ooperation ndia hina f hanistan 3
interests and challenge its claims to regional authority. his on den e b i din eas re a beit odest
More broadly, China’s engagement in South Asia has opened a window for precisely the type of
i ht a so ad erse in en e do esti po iti s in the coordination between two regional powers that
s b ontinent and stren then anti ndia po iti a for es has o ten been a bi a ent of their shared interests
the latter could spill over onto the domestic politics in h third part ooperation sho d be e tended
India’s states, thereby impacting periphery security and to other states confronting domestic challenges; for

Policy Challenges 2019-2024 Centre for Policy Research 23

 Foreign Policy and
National Security

e a p e the two nations o d to ether s pport Pakistan Economic Corridor that contradicts India’s
Bangladesh’s secular forces in their struggle against so erei nt o er a and ash ir is based on
e tre is or assist an ar in responsib legitimate questions around sustainability, viability,
managing domestic order. transparen and ind stria bene ts to the o a
communities of some of China’s economic projects.
2 Coordinating geoeconomic plans: Lacking in ndia hina oordination in third o ntries o d
nan e apita and ind stria reso r es ndia annot help in addressing these issues by giving India a
ndertake the so e b rden of i tin o th sia say in the choice and design of projects, along with
from underdevelopment and low interdependence, making China’s economic involvement more in sync
especially given the growing domestic claims within with the subregional political economy as well as
the country itself. If Indian requirements in the with established international norms. The second
subcontinent are to advance connectivity (both for he d in ei in in pri indi ates
within and between o th sian states and deepen Chinese leaders might be responding to the critique
the developmental process, China’s engagement from India and other countries. The communiqué
can be nudged or leveraged in directions that a ed for e tensi e ons tation reen peop e
a so ad an e ndias on ter interests i din entred and s stainab e de e op ent and hi h
constructive regional partnerships are unavoidable quality, sustainable infrastructure’ that is ‘inclusive
and China is one of the key players that need to be and broad bene ia 5 t for ndia to e p ore
engaged more strategically by India. whether the BRI’s adaptation does genuinely
augur a consultative and sustainable geoeconomic
Can China’s infrastructure projects increase approach by China in the subcontinent, its own
South Asia’s internal connectivity and economic position on the initiative needs to evolve such that
interdependence? Much of the viability of logistical its legitimate sovereignty concerns do not constrain
networks and energy projects is linked with India’s the formulation of a more sophisticated policy.
e ono and a ess to its ar e arket or e a p e
hydropower projects developed by China with India 3. Maritime cooperation: In recent years, India has
as the main eventual market could be a form of recognized China’s ‘Malacca dilemma’ – a reference
trilateral cooperation. Another instance is China’s to the long and insecure lines of communication
construction of a new terminal at the Chittagong through the northern Indian Ocean that China relies
port in an adesh whi h o p e ented ndia upon for much of its international trade – and its
Bangladesh coastal shipping cooperation.4 Similarly, corresponding interest in improving the security
pro e ts ike the an adesh hina ndia of its Indian Ocean trade routes. China, for its part,
an ar orridor o d re on i e ndias ision to too needs to reassure India on its port projects and
deepen connectivity with its smaller neighbours the military aspects of its regional involvement,
with China’s vision to connect its southwestern particularly in the South Asian littoral. Even as
provinces with South Asia. they recognize some of China’s maritime security
concerns, Indian policymakers must be prepared
ore broad ndia hina eoe ono i to counteract any attempts at militarization or
coordination and cooperation, including through conversion of Chinese infrastructure investments
joint bilateral and multilateral projects, is necessary in o th sia into forward basin fa i ities for the
to avoid duplicating large infrastructure projects Chinese military. A failure to do so might impel
that o d otherwise b rden the re ion with e ess other great powers to respond to China with their
s pp side apa ities and s a b rdens ndias own military bases on the subcontinent’s maritime
of ia position on the be ond the hina periphery, a process that would pose adverse

24 Managing India-China Relations in a Changing Neighbourhood

 Foreign Policy and
National Security

consequences for regional geopolitics and also the dominant power in South Asia, suggesting that
erode ndias in en e in the nei hbo rhood Chinese economic activity, while welcome, will not
necessarily translate into major military or strategic
gains’.6 Another discernible trend is that neither
Competitive Coexistence in a Common India nor China seems to be pressuring or cajoling
Neighbourhood smaller South Asian states to make hard choices,
or persuading these states to adopt postures and
India and China’s policies are beginning to resemble
policies that run contrary to the main interests of its
each other. Just as Beijing’s engagement with India’s
regional competitor.
neighbours increases the status and bargaining
position of these s a er states is is ndia
n short we do not see a o d ar st e o petition
New Delhi too engages with many South East
which suggests some sort of a tacit acceptance
Asian states who seek to hedge their dependence
of o petiti e oe isten e in their o er appin
on China by developing more economic and
peripheries. So while India and China are competing
geopolitical options. Yet, neither side is under any
the are doin so within a fra ework of se f restraint
delusion that India’s neighbours can be rallied
This could gradually pave the way for a conception
against India or that India can rally South East
of a regional order with informal norms on the ‘rules
Asian states to balance Chinese power. The balance
of the game’ in the subcontinent. Other things being
of power simply would not allow such a thing in
equal, internally resilient and economically vibrant
practice. The defence budget of the entire South
neighbours are likely to be in both India and China’s
East Asian region is about $45 billion. China’s is four
interests. If stability in their overlapping peripheries
ti es that re and with far ore oderni ed
is a common interest, it should pave the way for more
and balanced capabilities. Similarly, the asymmetry
sustained bilateral conversations to mitigate some of
between India and its neighbours is even higher. In
the n ertaint ind ed o petition and istr st
o th sia with the e eption of akistan none
these o d a so seek to proa ti e e p oit the
of the other states are in any position to present
untapped overlapping interests likely to be emanating
a threat or challenge to India, even with outside
from China’s growing involvement in South Asia.
assistance. This proposition is likely to be even truer
o er the o rse of the ne t e ears
ar si hted and pra ati oi es in the est are
advocating for ‘stable competition’ or ‘responsible
f we ook at the of ia rhetori fro the re ion
competition’ with a rising China to avoid precipitating
what stands out is a similar discourse being
a second and costly Cold War. Indian policymakers
espoused by most of the smaller South Asian
must take the long view and pursue an approach of
states. Nearly all of India’s neighbours have
peaceful competition in the neighbourhood. India
e pressed a preferen e for i non a i n ent or
and China need to engage in a strategic conversation
strategic autonomy as a guiding principle in their
on the subcontinent and its various parts towards
forei n re ations ii ti dire tiona e ono i
coordinating some of their regional connectivity visions
engagement with India, China, the US, Japan and
and policies. The failure to pursue such a dialogue, and
other powers and iii sensiti it towards ndia
to arrive an understanding on an agreed framework for
including publicly disavowing any move towards
Indian and Chinese policies, would constitute a recipe
offerin i itar fa i ities or bases to e terna
for re iona instabi it and a ost ero s ri a r
powers and thus reassuring India on its vital
that neither o ntr an afford in a rapid han in
interests. As one recent study observed, smaller
international environment.
South Asian countries ‘largely still see India as

Policy Challenges 2019-2024 Centre for Policy Research 2

 Policy Challenges CLIMATE ENERGY AND
2019 – 2024 THE ENVIRONMENT

Climate change is poised to have a profound and devastating impact on India’s development
agenda. With environmental quality across varied indicators only worsening – most
re ent in the for of risin air po tion resear hers at offer a series of pra ti a
policy approaches in the areas of climate, energy and the environment. They argue that
India must rethink its relationship with international climate negotiations and domestic
climate policy, execute a well-conceived roadmap for air pollution control, strengthen the
country’s environmental compliance regime, and enhance electricity access for the poor.

Policy Challenges 2019-2024 Centre for Policy Research 2

 Climate Energy and
The Environment

Rethinking India’s Approach to International

and Domestic Climate Policy
NAVROZ K. DUBASH AND LAVANYA RAJAMANI

India has traditionally approached climate change as exploration of lower-carbon opportunities for growth
a diplomatic issue, insisting that the developed world that foster development, while investing in climate
– because of their disproportionate role in causing the adaptation and resilience. Rethinking our approach at
problem – should lead the way in reducing emissions, the international and domestic levels, however, calls for
and pro ide the de e opin wor d the nan e and strong institutions for climate governance.
technology to do so. While this approach is entirely
sti ab e and has ser ed ndia we in the past there his paper a ter a brief onte t settin se tion a s
are compelling reasons for the country to rethink its out elements of an approach to international and
approach to international and domestic climate policy. domestic climate policy that is likely to serve India
First, climate change is likely to have profound and dev- well in the long run.
astating impacts in India, impacts that will make the
task of development and poverty eradication consid-
Context
erab harder e ond there are se era ost effe ti e
actions that India can take that serve its development i ate han e o ten hara teri ed as the de nin
as well as climate interests. Rethinking our approach issue of our age’, is predicted to have profound
would translate internationally into our joining, even ‘impacts on natural and human systems on all
leading, a ‘coalition of the willing’ that advocates for continents and across the oceans.’1 These impacts are
an ambitious and strong rules-based global climate likely to cause devastation in India, a country with
regime. Domestically, it would translate into a proactive 7500 km of coastline, extensive tracts of low-lying

28
areas, high population density, poor infrastructure as a leader of vulnerable nations. Doing so would
and continued reliance on agriculture for livelihoods. also be viewed favourably in the South Asia region,
With the 1°C warming that has already occurred by vulnerable countries such as Bangladesh, Bhutan
since pre-industrial times, Himalayan glaciers have and Nepal. Notably, these measures allow India to
begun to retreat, and there has been a marked be a climate leader even as it takes advantage of
increase in the frequency and intensity of heat waves,2 opportunities for economic and political gain; that is,
droughts, extreme rainfall events3 and oods f the the do not re ire the o ntr to sa ri e e ono i
world warms to between 2.6°C and 3.2°C, as the UN gain and political position for climate policy.
climate secretariat estimates it will based on current
country pledges, this will have serious, pervasive Based on approaches such as these, India could join
and irreversible consequences for India – not just in forces with others to form part of the ‘coalition of the
terms of impacts on peoples and ecosystems, but willing’ in global climate politics. Such a coalition is
also on economic growth, livelihoods and wellbeing. a particular need at this juncture in the negotiations.
Climate change is predicted, for instance, to reduce With the conclusion of the Paris Rulebook negotiations
agricultural incomes by 15-25% by the end of the in Katowice, Poland, in December 2018, the politically
century in India.4 charged negotiations on obligations, rules and institu-
tions are at an end and the re i e has shi ted ears to
the day-to-day business of implementation. The Paris
International Climate Policy
Agreement builds on nationally determined contribu-
India’s position in the international climate tions (or NDCs) from countries to reduce greenhouse
negotiations is set within larger geo-political gases, complemented by a normative expectation of
de e op ents that a so infor and in en e its progression and ‘highest possible ambition’ that calls
broader foreign and energy policy. With the US retreat for these contributions to be strengthened over time.5
fro the aris ree ent the ra i ian resident These terms – ‘progression’ and ‘highest possible ambi-
Bolsonaro’s equivocation on it, and the defeat of the tion are not de ned either in the aris ree ent or
Labour Party in Australia which advocated strong its ebook rther whi e the ebook eshes o t
climate measures, the momentum that led to the informational requirements, and operationalises an
Paris Agreement has begun to dissipate. There is a enhanced transparency framework, global stocktake,
leadership and imagination vacuum in global climate and implementation and compliance mechanism, it
po iti s whi h ndia o d seek to still preserves, out of political necessity, considerable
e ibi it a tono and dis retion for states this
For example, India could reach out to China, which is particularly evident in their near-absolute control
has long been its negotiating partner in retaining over the content of their NDC.6 States could choose to
differentiated responsibi it to for e a t a exploit this discretion and create a political and imple-
bene ia a ian e on the oba so ar ener mentation drag in the process, or they could choose
transition. India leads the International Solar Alliance to progressively strengthen their NDCs, enhance the
and provides a substantial market, while China has quality of the ex ante and ex post information they
technological leadership in solar panels and storage provide, and trigger a virtuous cycle of ever ambitious
technologies. Both countries are involved in the Asia actions necessary to meet the temperature goal of the
Infrastructure Investment Bank. As the Africa region Paris Agreement. It is in India’s interest to be part of the
develops its infrastructure, an India-China alliance ‘coalition of the willing’ – nations that seek to progres-
could help provide a vision of and the technological sively strengthen their NDCs, and enhance their ability
and nan ia eans for rea i in a ow arbon et to meet the procedural requirements of the Paris
ost effe ti e f t re n addition and onsistent with Agreement and its Rulebook as well as the substantive
this approa h ndia o d seek to rea i e its potentia objective of the climate change regime.

Policy Challenges 2019-2024 Centre for Policy Research 29

 Climate Energy and
The Environment

pe i a rst ndia sho d pro ide infor ation ing in international negotiations, and complementary
on its NDC, set against the larger context of its backchannel processes.10 The country’s delegations to
development aspirations and resource constraints.7 the climate negotiations are considerably smaller than
This information should include the planning processes those of other nations of o parab e si e and stat re
the country has engaged in to reach its NDC, which The composition of the delegations tend to favour
in turn should include meaningful stakeholder bureaucrats rather than experts, and there are limited
consultations and attentiveness to the human rights formal channels for national positions to be informed
impacts of climate change action or inaction. by outputs from the growing research community
working in these areas in India. In rethinking our ap-
Second, India should clearly explain how its NDC is proach to climate policy, international and domestic,
fair and ambitious, and on what objective criteria and India must also rethink its engagement with experts,
benchmarks. This approach would allow India to ask and the processes for doing so.
how these criteria and benchmarks could be applied
to the NDCs of other countries as well, turning its ti ate the effe ti eness of the aris ree ent
long-held emphasis on the principle of equity in given its hybrid architecture, lies in the strength of the
climate change negotiations into a practical and NDCs that parties submit. The strength of the NDCs
applied measure. It is by providing robust information will in turn depend on international processes that
in the context of its NDC that India can introduce can catalyse more ambitious domestic actions, as well
into the global assessment of progress criteria and domestic political will and institutional capacity for
benchmarks which assess ‘relative fair shares’. formulating and delivering ambitious NDCs. It is to
these domestic issues that we now turn.
Third, in relation to ex-post tracking of progress in
implementing its NDC,8 India should identify objec-
Domestic Climate Policy
tive defensible indicators to assess its progress with its
take proa ti e efforts to address apa it aps in As the reality of climate change looms, and its
implementation and reporting, and gradually improve impacts become more real, India – as is true of
the quality, precision and detail of the information it other countries – increasingly needs to view climate
provides. India’s implementation should demonstrate change as a developmental challenge, and not
a hi h de ree of d e di i en e best possib e efforts simply as a diplomatic one. Simply put, climate
in meeting the objectives of its NDC. change will make development outcomes more
challenging. For example, global pressures to
Finally, in relation to the global stocktake process limit greenhouse gases and the emergence of new
e er e ears 9 India should work with negotiating technologies will make it more complicated for
partners (such as South Africa) and vulnerable na- India to power its industries and provide electricity
tions to ensure that the ‘hooks’ on equity in the Paris to its iti ens in on entiona wa s ri t re on
Agreement and the Rulebook are duly exploited. India which a substantial portion of the population still
should submit its vision of equitable burden sharing depends for livelihoods, may be particularly hard hit.
and ‘relative fair shares’ to enable a meaningful as- Cities and coastlines may be subject to disruptions
sessment, albeit a collective one, at the international from climate-related events. Water cycles may
level of progress towards the global temperature goal. be disrupted, and the timing and availability of
water through rainfall and in India’s rivers may
India’s ability to take a leadership position in this ‘co- shift. And heat waves and shifting disease vectors
alition of the willing’ will require a substantial scaling will complicate the problem of ensuring public
p of the apa it and reso r es h an nan ia health. Climate change is not an isolated challenge
legal, research and institutional – it devotes to engag- to be addressed by one part of the government;

30 Rethinking India’s Approach to International and Domestic Climate Policy

 Climate Energy and
The Environment

it is a problem that requires mainstreaming of Action Plan on Climate Change proposed exploring
climate considerations through all sections of the actions that lead to both development and climate
government’s decision-making apparatus. bene ts his prin ip e of o bene ts has ided
our actions since, but actions that meet this principle
As this discussion suggests, the institutional have not been fully pursued and developed. Here,
requirements of managing climate change are India’s status as a late developer is an advantage: we
considerable. In the last few years, India has begun have not, as yet, locked into energy production and
planning for climate change – including through a consumption patterns, and so can take advantage
National Action Plan, eight national missions covering of new technology and knowledge to build a lower-
adaptation and mitigation, and 32 state action plans carbon development path.
and reater in est ent in s ienti infrastr t re
et a deeper di e into these efforts re ea that the India’s cities provide a particularly good example.12 The
research and analytical capacity in each of these areas o ntr is rbani in rapid b t h of rban ndia
is weak, coordination is limited, implementation is re ains to be b i t he ne t o p e of de ades afford
pat h a ross these efforts and the strate i thinkin an opportunity to set up cities where transport needs
for truly transformative approaches is lacking.11 (and hence emissions but also congestion) are lower
due to sensible planning that locates work and living
Building the capacity of Indian states to address spaces near each other; the travel needs that remain
the complex challenges of climate change is but in are met increasingly with high-quality public transport
its infancy. The country needs to go much further and walking (rather than private automobiles); new
down this path, devising and implementing a robust buildings are designed to need less cooling and
institutional structure that can generate appropriate heating through intelligent design. Planning processes
knowledge, design policy and infrastructure interven- for urban spaces need to be focused on the multiple
tions, coordinate across sectoral line departments and objectives that a city should meet in these times – of
across scales of governance, ensure accountability for i abi it ow on estion ef ient f n tionin and a
implementation, and provide an interface to business small environmental footprint.
and civil society groups. Development remains India’s
number one priority. But development untouched India’s electricity system provides another instructive
by climate change is no longer possible. Addressing case.13 Long ridden with problems of unreliability,
climate change adds to India’s problem of developing poor service and loss-making, Indian electricity is
adequate state capacity. A forthcoming edited volume likely to be shaken up by the recent steep decline
coordinated by the Centre for Policy Research, India in in costs of renewable electricity to levels where it is
a Warming World, explores how India can truly inter- competitive with coal power. However, the transition
na i e i ate on erns in both its ener ons p- is likely to be turbulent, and create winners and
tion and natural resource sectors so as to address osers or e a p e ind stries a hoose to shi t to
climate mitigation and adaptation. renewab es thereb in reasin the nan ia b rden
on distribution companies. Coal-mining regions may,
over time, have to move to other industries.14
Mitigation
Climate change mitigation, or the limitation of Notably, these changes are inevitable and are being
greenhouse gas emissions, has always been tied driven by global technology trends, not by national
to India’s global negotiating stance. If wealthier climate policies alone. Recently, Tata Power became
countries, and not India, are largely responsible for the most recent example of a company that is planning
the problem, why should India undertake costly to pivot from coal to solar for economic reasons.15 But
mitigation actions? A decade ago, the National planning for this future under the rubric of a transition

Policy Challenges 2019-2024 Centre for Policy Research 3

 Climate Energy and
The Environment

to a low-carbon economy could help unlock possible the perspective of providing climate resilience. In
synergies between green power, energy access and brief, the scale and scope of potential climate impacts
energy security. Alternatively, failure to plan for this require mainstreaming of climate considerations
transition may be costly, particularly for the poor. systematically across development programmes, rather
Moreover, the likelihood of green, yet competitive than an approach that rests on marginal band-aids.
electricity opens the door to electrifying other sectors,
such as transportation and cooking. But the challenges In another example, India’s long coastline is particular-
involved in managing these transitions, in terms of ly vulnerable to climate impacts.17 Climate change is
hardware required, institutional rules and making sure ike to de rease the prod ti it of sheries thro h
potentia osers are not e t behind are s bstantia and changes in ocean temperature and acidity levels,
require immediate analysis and planning. a read stressed b non i ate effe ts s h as ferti iser
r n off with i pa ts on i e ihoods of sher o -
India’s cities and electricity sector are but nities e a se these effe ts are non inear be ond
two examples. Mitigation also encompasses a point, coastal systems may be stressed beyond the
transportation networks (including for freight), point of recovery. In addition, extreme weather events
industries, agriculture, forest management and and sea e e rise are ike to reshape oasta ones
use, and food consumption patterns, to name a and increase risks and costs of inhabitation on coasts.
few. For India, a consistent approach – built around Addressing these challenges includes but goes beyond
nderstandin the s ner ies and trade offs a ross disaster preparedness. It requires, for example, coor-
multiple development objectives and climate dinatin the work of different depart ents so e of
mitigation – needs to become part of the policy which have a protective mandate and others that seek
framework across these sectors. to a i i e prod tion these need to be har oni ed
around coastal resilience.

Adaptation Apart from agriculture and coasts, urban areas,

t is in reasin ear that despite o r best efforts forests and water management also pose a complex
countries collectively are unlikely to mitigate challenge. In all these areas, the challenges of
s f ient to a oid at east so e potentia mainstreaming climate change are simultaneously
si ni ant effe ts of i ate han e 16 India, perhaps s ienti e ono i so ia and instit tiona
even more than other nations, has to pay considerable
attention to the adaptation and resilience of its
economy and society.
Conclusion
As the spectre of climate change grows ever clearer, it is
Doing so is as complex as reducing greenhouse gas becoming increasingly obvious that pursuing develop-
emissions, and perhaps even more so. For example, ent witho t interna i in i ate han e onsidera-
adaptation in agriculture requires preparing India’s tions risks i norin a bi pie e of the p e entra
agricultural systems for heat stress and unpredictable element of the new government’s agenda must thus be
rainfall patterns against a backdrop of existing farmer to interna i e and ainstrea i ate onsiderations
distress, a creaky system of price stabilisation prone
to rent-seeking, and highly inadequate insurance Fortunately, in relation to international policy,
and risk management mechanisms available to addressing climate change can also bring economic
farmers. In this context, large existing entry points and political gains. It can enable India to work its
into food security and employment, such as the alliances to become a leader in an impending global
public distribution system and the Mahatma Gandhi clean energy transition. And it opens possibilities for
National Rural Employment Guarantee programme, the country to become a political leader, notably of
could usefully be rethought and repurposed from vulnerable nations.

32 Rethinking India’s Approach to International and Domestic Climate Policy

 Climate Energy and
The Environment

Domestically, there is considerable work to be done. agriculture, coasts, cities, water and forests, the new
This involves rethinking India’s energy system in a o ern ent wi need to in est in dedi ated s ienti
wor d that prioriti es ean ener in din ta k in and instit tiona apa it tasked with interna i in
the thorny question of remaking India’s problematic the climate challenge and the implications climate
electricity distribution sector. To manage impacts on change holds for development.

END NOTES

1. Intergovernmental Panel on Climate Change, ‘Summary for Policymakers’, in Climate Change 2014: Synthesis Report, Contribution of Working Groups
I, II, and III the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, edited by Core Writing Team, R.K. Pachauri and L.A Meyer
ene a wit er and hereina ter

2. n a heat wa e in ndia ki ed ore than peop e ee tephane a e atte drien o t hi b ook an a ore and ie o enber
‘Unbreakable: Building the Resilience of the Poor in the Face of Natural Disasters’ (Washington, DC: World Bank, 2017), 34.

3. O. Hoegh-Guldberg, D. Jacob, M. Taylor, M. Bindi, S. Brown, I. Camilloni, A. Diedhiou, R. Djalante, K.L. Ebi, F. Engelbrecht, J. Guiot, Y. Hijioka, S. Mehro-
tra, A. Payne, S.I. Seneviratne, A. Thomas, R. Warren and G. Zhou, ‘Impacts of 1.5°C of Global Warming on Natural and Human Systems’, in Global
Warming of 1.5°C, edited by V. Masson-Delmotte, P. Zhai, H.O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock,
onnors atthews hen ho o is onno a ok i nor and ater e d ene a wit er and

4. Ministry of Finance, Government of India, ‘Climate, Climate Change, and Agriculture’, in Economic Survey 2017-18 (New Delhi: Government of India,
2018), 82.

5. Article 4(3), Paris Agreement, 2015.

6. Lavanya Rajamani and Daniel Bodansky, ‘The Paris Rulebook: Balancing International Prescriptiveness with National Discretion’, International &
Comparative Law Quarterly 68 (4) (forthcoming, 2019).

7. Article 4(8), Paris Agreement, 2015.

8. Article 13, Paris Agreement, 2015.

9. Article 14, Paris Agreement, 2015.

10. ee for a f dis ssion of e a apa it onstraints and their s bstanti e effe ts on ndias ne otiatin position a an a a a ani ndias
Approach to International Law in the Climate Change Regime’, Indian Journal of International Law 57 (1) (2017).

11. Vijeta Rattani, ‘Coping with Climate Change: An Analysis of India’s National Action Plan on Climate Change’ (New Delhi, India: Centre for Science
and n iron ent a ro bash and eha oseph o tion of nstit tions for i ate o i in ndia Economic and Political Weekly
51 (3) (2016), 44-54; Sudhir Chella Rajan and Sujatha Byravan, ‘An Evaluation of India’s National Action Plan on Climate Change’ (Chennai, India:
Centre for Development Finance, Institute for Financial Management and Research and Humanities and Social Sciences, IIT Madras, 2012).

12. adhika hos a and nkit hardwa rbani ation in the i e of i ate han e a inin the esponse of ndian ities Wiley Interdisciplinary
Reviews: Climate Change 10 (1) (2018), e560, https://doi.org/10.1002/wcc.560.

13. Ashok Sreenivas and Ashwin Gambhir, ‘Aligning Energy, Development and Mitigation’, in India in a Warming World ed a ro bash ew
e hi ford ni ersit ress forth o in a ro bash ni a a e and an it har irkar eds Mapping Power: The Political Economy of
Electricity in India’s States (New Delhi: Oxford University Press, 2018).

14. a ro bash shwini wain and arth hatia he isr pti e o iti s of enewab e ner The India Forum, forthcoming.

15. ress r st of ndia ata ower to fo s on ean ener not to b i d new oa red p ants report The Hindu, 23 April 2019, https://www.
thehind b siness ine o o panies tata power to fo s on ean ener not to b i d new oa red p ants report arti e ee

16. IPCC, ‘Summary for Policymakers’, in Global Warming of 1.5°C, edited by V. Masson-Delmotte, P. Zhai, H.O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A.
Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor and T.
ater e d ene a wit er and

17. Rohan Arthur, ‘Shoring Up: Climate Change and the Indian Coasts and Islands’, in India in a Warming World ed a ro bash ew e hi
Oxford University Press, forthcoming).

Policy Challenges 2019-2024 Centre for Policy Research 33

 Climate Energy and
The Environment

ASHWINI K. SWAIN AND NAVROZ K. DUBASH

India’s move to electrify every village and household Challenges of Electricity Access
in the country has been lauded as a success. Building
Once connected to the grid, consumers face multiple
on decades of targeted programmes and public
ha en es to sta p ed in and rea i e the f
investments by multiple governments, the country
bene ts of e e tri it ser i es ro the perspe ti e
o p eted i a e e e tri ation in pri
of the poor, there are three key challenges that need
a ear a ter it has e e tri ed near a wi in
to be overcome: unreliable supply, poor consumer
households. Despite the time it took to get here,
ser i e and naffordab e bi s
these achievements are important milestones in
India’s development trajectory. But does connecting
Although India has become power surplus, many
households to the electric grid resolve the electricity
homes, especially those located in rural and low-
access challenge? The answer depends on whether
income areas, have to bear with intermittent and poor
e e trons ow thro h the wires and whether a
quality supply. While government reports indicate 16-
consumers are served equally and adequately.
ho rs of s pp to a ho es se era s r e s nd
lower supply hours, particularly, in the evening hours.
or e e trons to ow and for there to be power for a
Prayas Energy Group’s Electricity Supply Monitoring
a vital policy issue to be considered is about the role
Initiative found that less than 20% of rural locations
to be played by the Government of India (GoI). Given
receive continuous supply during 5-11 p.m. This
the concurrent status of electricity, can the sector be a
pattern of unreliable supply can be explained by an
perfe t r ib e for akin effe ti e the ooperati e
inherent disincentive to serve the poor. While India’s
competitive federalism experiment that is now India’? 1

34
average monthly household electricity consumption accounted for 40% of total subvention from all states.
is as low as 90 kWh,2 most households consume he re ent p sh for nan ia t rnaro nd of dis o s
less than 50 kWh.3 India follows a consumption through a centrally designed scheme – Ujwal Discom
s ab based tariff s ste where initia ons ption Assurance Yojana (UDAY) – has not achieved the
s abs are har ed si ni ant be ow the osts his desired results in many states.6 he s a spa e of
is one reason why electricity distribution companies these states and discoms is cramped by the need to
(discoms) lose more than 50% of their cost in accommodate the electricity subsidy. On the other
supplying to low-consumption consumers.4 hand e istin s bsidi ed ife ine tariffs in these
states are, ironically, higher than in states with high
Metering and billing irregularities are common, electricity access.7 Media reports suggest that 3.5
particularly in rural areas. The human resources million households in Uttar Pradesh are unwilling to
of discoms have declined even as their consumer get an electricity connection despite the connection
base has increased, leading to lower frequencies of har e wai er and s bsidi ed tariff at of the
meter reading and billing. Many discoms raise bills actual costs. 8

on e in two onths n se era ases the rst bi

a ter the onne tion is raised a ter se era onths
The Centre’s Helping Hand
ated d es are o ten naffordab e to ow
income households and increases the likelihood of he responsibi it for e e tri ation has been shared
payment default and subsequent disconnection. by governments at the Centre and states. Successive
Irregular billing also causes a trust gap between governments at the Centre have played an important
discoms and consumers. A recent survey in Uttar role through sustained policy directives, targeted
radesh nds that ons ers who are bi ed onth pro ra es and nan ia s pport he reation
are more likely to pay on time and in full amount; of a dedi ated nan in a en in the ra
but those who are not billed regularly do not believe e tri ation orporation he ped boost
that their bill is based on actual consumption and are i a e e e tri ation in the s and s when
likely to default on payment.5 two thirds of ndias i a es were e e tri ed o
address ow ho seho d e e tri ation the entre
A major barrier to electricity access remains the launched Kutir Jyoti Yojana in 1989, with budgetary
concurrence between economic poverty and energy allocations to provide single-point light connections
poverty. At the launch of Saubhagya, seven states to BPL households. Rajiv Gandhi Grameen Vidyuti
(Uttar Pradesh, Bihar, Odisha, Jharkhand, Assam, Karan Yojana, launched in 2005, extended free
Rajasthan and Madhya Pradesh) accounted for electricity connections to about 22 million BPL
two thirds of the n e e tri ed ho seho ds in households, in addition to others who paid for their
India. These states are home to about two-thirds onne tion it a so e e tri ed ore than a i ion
of India’s population living below the poverty line villages by 2014. The last 18,000 villages were
(BPL). Discoms in these states are already highly e e tri ed nder een a a padh a a ra oti
indebted, accounting for 42% of accumulated debts Yojana, launched in 2015. Between 2017 and 2019,
of all discoms as of March 2016. Discoms in these the central government sponsored an aggressive
seven states have higher losses and revenue gaps ho seho d e e tri ation dri e the radhan antri
than national averages. Despite continued state Sahaj Bijli Har Ghar Yojana (Saubhagya) – to connect
government subvention (or payment to discoms), more than 26 million households to the electricity
all these discoms have been consistently running grid. With multiple interventions spread over decades
at a loss, accounting for about 47% of the loss in and multiple governments, the Centre’s thrust has
the electricity distribution business. In 2015-16, been to connect villages and households to the
subventions to discoms amounted to 10% of these electric grid, through funding the costs of erecting
se en states o e ti e ross s a de it and poles and stringing wires.

Policy Challenges 2019-2024 Centre for Policy Research 3

 Climate Energy and
The Environment

The state governments, with oversight on electricity Centre needs to lend a hand. Simultaneously, the
distrib tion ha e anoe red to keep e e trons ow- central government will need to steer planning and
ing through the wires. The key to the states’ approach governance for better coordination and coherence
is redistributive welfarism: charging commercial and across states. The Centre will thus continue to play
industrial consumers higher rates to keep electric- a si ni ant ro e in p rs in the oa of ni ersa
it affordab e for far ers and ow in o e ho es electricity access. Towards this, we suggest the
However, the pattern of electricity provisioning has following priority actions for the new government.
been intricately shaped by electoral priorities, creat-
ing perverse incentives for serving the poor. The result Beyond Redistributive Welfarism to Productive
is a low-level equilibrium where the poor are locked Power
into cheap but intermittent, low-quality electricity. To achieve universal access, India’s electricity policy
Because quality is low, many consumers feel empow- needs a paradi shi t fro redistrib ti e we faris
ered to default on their dues. The forces of inertia that prioriti es s bsidi ed osts for the poor whi e o -
ha e pre ai ed o er refor inter entions to rationa i e promising on the quality of service) to ‘productive power’
prices and enable cost recovery. Moreover, intermit- (that empowers and enables the poor to pay for better
tent supply impacts business competitiveness. A sur- quality service through productive use of electricity).
vey conducted in Bihar, Odisha, Rajasthan and Uttar
Pradesh suggests that 40% of rural enterprises rely on Last year, the government proposed a set of
non-grid electricity sources as grid supply is unrelia- a end ents to the ationa ariff o i
ble and expensive.9 hese were ai ed at a shi t awa fro ons er
ate or wise tariff to a pro ressi e oad and
The Centre’s thrust on connecting villages and ons ption based tariff for a hi e this wi
ho seho ds to the e e tri it rid has been rea i ed not address the cross-subsidy burden on large
but is only a step towards universal access to modern commercial and industrial consumers, it will
energy. In 2014, a joint initiative between the Centre ake e e tri it affordab e to s a ind stries and
and the states – 24×7 Power for All – was launched. entrepreneurs that are currently charged a cross-
It had a state-by-state strategy with a shared goal s bsidi in tariff
to ensure round-the-clock supply to all consumer
categories starting from April 2019. Despite a strong Implementing these proposed amendments to the
political mandate, the goal seems to be far from NTP in a time-bound and phased manner to make
rea i ed hie in ni ersa a ess to e e tri it e e tri it affordab e for prod ti e se b the poor
will require addressing problems around reliability, will be an important step. Availability of reliable
affordabi it a it of s pp and ser i e that e e tri it is ne essar b t not s f ient to obi i e
are persistently present across states. The new its productive use. The Centre will also need to
government at the Centre will need to revive its develop a broad strategy around ‘productive power’,
helping hand to support its state counterparts in seeking to promote rural industries and businesses
dealing with diverse electricity access challenges that (such as agro-processing and cottage industries) with
are entrenched in state-level political economies. the re ired nan ia and infrastr t re s pport

The Way Forward

he e istin de nition of e e tri ation set o t in
The challenges to universal electricity access are at e phasi es the e isten e of a basi e e tri it
the state level and are, in part, beyond an individual infrastructure, keeping the focus on grid expansion and
state’s capacity to address. Given that the poorest household access to the grid. Now that the grid has
states will have higher costs of universal access, the reached nearly all homes, it is important to revisit the

3 Beyond Poles and Wires: How to Keep the Electrons Flowing?

 Climate Energy and
The Environment

de nition with a fo s on ens rin a ess to re iab e Alternative Service Delivery Models
and affordab e e e tri it for a The technological transformation in the sector, led by
greater penetration of renewable energy, is likely to
Holding Discoms Accountable for Performance cause disruption in the electricity distribution structure.
Providing productive power requires that discoms are Discoms are likely to lose predictability in business
held accountable for performance. While the Electricity and their si ni an e as instr ents of redistrib ti e
Act of 2003 (EAct) has made provisions for standards of welfarism.11 There has been resistance to past attempts
performances (SoPs) to be met by the discoms, com- to restr t re the distrib tion b siness for ef ien
p ian e and onitorin re ain ow with si ni ant gain – through promotion of franchisees and cooper-
discrimination across consumer categories. There is a atives, and separation of carriage and contents. The
need to implement a stricter legislative mandate for future uncertainties in electricity distribution necessi-
SoP compliance and equal treatment of consumers. tate planning for alternative service delivery models to
Available technologies could be harnessed to monitor ens re that the poor are not e t o t he entre needs
discoms’ performance in this regard. The Centre has to play the role of a catalyst by steering the planning
been promoting smart meters for automation of billing at the state level, without imposing a single, standard
and consumer accountability. These meters can also be model. Diversity in approaches and models will be cru-
used to monitor supply quality and for consumer infor- ia to ana e state e e e ono i for es and spe i
mation. In 2013, the Centre made an attempt to make electricity demands.
discoms and the respective state governments account-
able by presenting a Model State Electricity Distribu- Strengthening the Rural Distribution Network
tion Management Responsibility Bill. Rajasthan is the While the electricity grid has been extended to all
only state government to have enacted this bill. Some corners of the country, the distribution network in rural
of the provisions of this bill were included in UDAY, areas remains fragile and prone to frequent break-
b t witho t an e is ati e andate hese efforts an down. Although rural areas presently have low energy
serve as a template for developing a framework to hold demand, the potential for demand growth is high.
the discoms accountable for their performance. istrib tion networks wi re ire si ni ant p rades
to meet future demand. As the discoms have little in-
Better Consumer Protection centive to invest in rural networks and many states lack
The EAct included provisions for consumer protection. s a apa it the entre wi be re ired to ontin e
While the institutions for consumer grievance redres- investing in the rural distribution network, until such
sal – Consumer Grievance Redressal Forums at discom time as rural consumers climb onto the virtuous cycle
level and Ombudsman at state level – have been put of receiving better service and being willing to pay
in place, these avenues remain dysfunctional and more for quality. The Centre has been supporting urban
o ten in en ed b the dis o s 10 There is a need to distribution network upgrades through successive
strengthen these institutions to protect the interests of programmes12. Similar interventions are required to
consumers, hold the discoms accountable, and build upgrade rural distribution and ensure quality supply to
trust between the two. This will require raising consum- consumers based in rural areas.
er awareness on the existence of forums for grievance
redressal and making these forums accessible to all. The Subsidy Conundrum
Regular analysis of grievance records is required to Even though the key to electricity reform in India is
understand patterns and discoms’ performance. These tariff rationa i ation there is no do bt that for the
analyses must be accessible to the public and used to time being, electricity supply to the poor needs to be
make discoms accountable. The grievance redressal fo- s bsidi ed hese s bsid needs are on entrated in
rums need to be redesigned to function independently poorer states with i ited s a spa e n an interestin
from the discoms. development, in the proposed amendments to the EAct

Policy Challenges 2019-2024 Centre for Policy Research 3

 and NTP, the Centre has proposed to make subsidies a The Centre’s past guidelines to reduce and eliminate
collective responsibility of the central and state govern- cross-subsidies in a timebound manner and raise reve-
ents his is an i portant shi t awa fro the ear ier nue from low-paying consumers have been resisted by
model where subsidy was the sole responsibility of the states ather ross s bsidi ation and the ap between
concerned state governments. If implemented, this costs and revenue have gone up in several states. The
would allow the subsidy-based approach to electricity to new o ern ent st prioriti e the s bsid on n-
ontin e with a shi t fro a rate pa er based ross s b- drum and develop a transition plan to gradually reduce
sid s ste to a ta pa er based s a s bsid s ste subsidies without compromising essential service
for the poor t sho d onsider state spe i po iti a
he entre a so seeks to pro ote dire t bene t transfer economy forces and must embed a strategy to promote
(DBT) for subsidy payment to ensure better targeting. ‘productive power’ to enable the poor to pay. Large-
A reform in the subsidy mechanism, seeking to better s a e adoption of spe i too s or so tions sho d be
tar et and rationa i e s bsid is an r ent need t based on on s essf pi ot e peri ents a ter are-
the proposed approaches are not free from limitations. f onsideration of the osts and bene ts a strate to
Managing electricity subsidy demands with tax revenue manage the costs to losers from subsidy reform must
will require the electricity sector to assert its claims for be included.
support in competition with several other possible uses
of these funds; it will also limit the ability of states and Erecting poles and stringing wires across a country like
regional political parties to make electoral use of electric- India is an important step. But the work remains incom-
ity pricing, introducing political uncertainty. In addition, plete until high quality reliable power that enhances
identifying and targeting legitimate subsidy demands to rural productivity is made available to India’s poor. This
use DBT remains a challenge.13 must be the agenda, going forward.

END NOTES

1. GoI, Economic Survey o e ew e hi epart ent of ono i ffairs inistr of inan e o ern ent of ndia
2. Radhika Khosla and Aditya Chunekar, ‘The journey towards energy savings begins from home’, Mint, 8 June 2018.
3. Ashwini Chitnis, Sripad Dharmadhikary, Shantanu Dixit, Srihari Dukkipati, Ashwin Gambhir, Ann Josey, Sreekumar Nhalur and Ashok
Sreenivas, Many Sparks but Little Light: The Rhetoric and Practice of Electricity Sector Reforms in India (Pune: Prayas Energy Group, 2017).
4. reek ar ha r nn ose and anabika anda ra e tri ation in ndia ro onne tions for to ower for Economic and
Political Weekly 53(45) (2018): 31-37.
5. Karthik Ganesan, Kapardhi Bharadwaj and Kanika Balani, Electricity Consumers and Compliance: Trust, Reciprocity, and Socio-Economic Factors in
Uttar Pradesh (New Delhi: Council on Energy, Environment and Water, 2019).
6. andeep a r and ekha hakrabart ower ebt in etrospe t and rospe ts na in the f ien ara eters workin
paper 244 (New Delhi: National Institute of Public Finance and Policy, 2018).
7. Ashwini K. Swain, ‘In a state of energy poverty’, The Hindu, 11 May 2018.
8. tpa haskar owers e e tri ation tar et ai s a ho seho ds e e tri ed Mint, 31 January 2019.
9. Shalu Agarwal, Nidhi Bali and Johannes Urpelainen, Rural Electrification in India: Customer Behaviour and Demand (Smart Power India &
Initiative for Sustainable Energy Policy, 2019).
10. Ashish Khanna, Daljit Singh, Ashwini K. Swain and Mudit Narain, ‘Transforming Electricity Governance in India: Has India’s Power Sector
Regulation Enabled Consumers’ Power?’, World Bank policy research working paper 7275 (Washington DC: World Bank, 2016).
11. a ro bash shwini wain and arth hatia he isr pti e o iti s of enewab e ner The India Forum (Issue: July 5, 2019).
12. Such as Accelerated Power Development Programmes (2001). Accelerated Power Development Reforms Programme (2002), Restructured
Accelerated Power Development Programme (2008), Integrated Product Development System (2014).
13. shwini wain arth hatia and a ro bash ower po iti s at p a The Hindu, 9 October 2018.

38 Beyond Poles and Wires: How to Keep the Electrons Flowing?

 Climate Energy and
The Environment

A Road Map for the Next Five Years

SANTOSH HARISH, SHIBANI GHOSH AND NAVROZ K. DUBASH

The Big Challenge Air pollution is a public health emergency. The health
impacts of poor air quality are staggering and of
Air pollution levels are unsafe across the country, all-year
growing concern as we discover the full range and
round. While pollution levels spike to dangerously
de ree of its effe ts with new resear h ir po tion
high levels during the winter in north India, those
is estimated to reduce the average life expectancy of
in several parts of the country are poor or worse for
a child born in India by at least 1.5 years.2 In 2017, air
large parts of the year. High pollution levels are not
pollution is estimated to have contributed to one in
restricted to cities; several industrial areas along
eight deaths in India.3 Cardio-respiratory diseases
with rural areas across the Indo-Gangetic plain are
and lung cancer in adults, and acute lower respiratory
also polluted. There are several kinds of pollutants in
infections in children, are the more commonly known
the air parti ate atter arbon ono ide o one
impacts of air pollution. In addition, new research
oxides of nitrogen and sulphur. Fine particulates
indicates a much wider range of health impacts of
(PM2.5) form a useful proxy indicator for air
air pollution such as on birth weight, child growth,
pollution. The population-weighted annual average
obesity and bladder cancer. There is growing evidence
concentration of PM2.5 across the country, estimated
on the adverse impacts of pollution on cognitive
using satellite data, was 91 microgram/m3 in 2017 –
abilities in children.
more than twice the national standards.1

39
 Climate Energy and
The Environment

Multiple sources contribute at different regional scales. Air pollution reduction needs greater commitment
Industries, power plants, vehicles, waste burning, from the executive. So far, pollution control has
road and construction dust, and household sources largely been driven by the judiciary. The new
are si ni ant so r es of air po tion t the nationa o ern ent sho d ass e eadership in ra tin
level, household burning of polluting fuels for and i p e entin an effe ti e nationa air po tion
cooking and heating purposes forms the single largest red tion strate his o d take different for s
contributor to average PM2.5 exposure (in addition One important example is empowering and giving
to the exposure to PM2.5 within these households greater autonomy to pollution control boards (PCBs)
themselves).4 Industries and power plants that burn to discharge their responsibilities and act against
coal are the second and third largest sources of polluters. Currently, interference in the functioning
exposure at the national level. Within cities, other of these boards is visible in multiple ways: (i) the
sources like transportation, construction dust and boards are typically led by generalist bureaucrats
waste burning play an important role. Because of despite court judgments that have backed domain
these different eo raphi a s a es of in en e experts for chairpersons and member secretaries;5
po tion ontro eas res need to tar et different ii their f ndin is o ten dependent on rants
so r es at appropriate e e s hese different so r es in-aid by the state governments; and (iii) routine
and scales make the role of the central government administrative decisions like hiring need approval
critical in framing policy at regional and national from the environment department. State PCBs also
scales, coordinating implementation across states, and see to be fa in a trade off between their f n tions
pro idin ne essar nan ia and te hni a assistan e of monitoring and enforcement, and promoting ‘ease
of doing business’. All of these curtail their ability to
dis har e their stat tor andate effe ti e
The Existing Policy Framework
The National Clean Air Programme (NCAP), launched The new government should also enable resolution
by the Ministry of Environment, Forest and Climate when there are complex political and econom-
Change (MoEFCC) in January 2019, looms large over ic factors contributing to a polluting activity. For
the newly elected government’s policy landscape. instance, consider the case of stubble burning where
he identi ed non attain ent ities Minimum Support Prices, groundwater manage-
which have particulate matter levels that exceed ent far e hani ation the a rarian risis and
the annual standards – and set a reduction target of unfavourable meteorology all contribute to episodic
20-30% by 2024. However, in its approach, the NCAP peaks in pollution in north India. Banning burning or
is a status quo-ist document, which adheres to city- s bsidi in te hni a so tions s h as app eed-
spe i te p ates fro the past and who isses ers’ are unlikely to solve the problem, unless some of
addressing governance gaps. It reinforces India’s policy the structural factors mentioned above are tackled
response to air pollution, which has largely been through political negotiation.
reactive and overly reliant on administrative solutions.
The existing regulatory design has proved to be
A New Policy Agenda
entirely inadequate to meet the scale of the problem,
Strengthening the National Clean Air
and the monitoring and enforcement capacity of
Programme (NCAP)
government agencies (such as the pollution control
boards is ins f ient espe ia for dispersed so r es NCAP was a missed opportunity to outline a
of pollution like vehicles, stubble and waste burning. systematic strategy. Beyond the national outreach and
n effe ti e air po tion ontro strate st break the reduction targets, it is a compilation of ongoing
away from the status quo, and instead strategically efforts and ea es the detai s of new efforts to f t re
prioriti e ke i p e entab e a tions a tion p ans pe i aps in de

40 Clearing Our Air of Pollution: A Road Map for the Next Five Years
 Climate Energy and
The Environment

• NCAP is largely a continuation of the traditional addition, we need to ensure that the programme does
policy approach of developing long lists of not adversely impact vulnerable groups.
nprioriti ed a tion points t does not p t
implementation capacity at the heart of designing In particular, with dispersed sources of pollution, such
our mitigation policies, thus risking non- as transportation, households, waste burning and
implementation. construction dust, administrative solutions that require
monitoring and enforcement are likely to fail. Instead,
• The programme is urban-centric, focusing on a enforcement could work better for policy changes
limited group of cities, and following the National tar eted at hi her ore entra i ed e e s where
Capital Region template by relying on city action possible. For instance, with vehicles, although there is
plans. However, air pollution is not restricted to a pollution control mechanism in place, several issues
ities and air a it in ities is t pi a in en ed inhibit inspections from being a reliable way to keep
si ni ant b so r es fro o tside ddressin the on road eet within standards hese in de ow
this problem requires moving the conversation rates of compliance among vehicle owners in getting
towards addressing pollution at regional ‘airshed’ tested and compromised inspections (poor calibration
e e s and ha in ore e ib e s ste bo ndaries of testing equipment and corrupted inspection results).
for air pollution control. The NCAP does not Policy changes aimed higher up in the manufacturing
o t ine a road ap for de nin these airsheds and process, such as the requirement to comply with Bharat
developing processes that cut across jurisdictions and Stage VI norms, are likely to be better implemented.
departments.
Keeping these factors in mind, three key priority areas
• NCAP misses addressing governance gaps directly. within the are identi ed be ow
It introduces new committees at the central and
state levels, and declares that individual ministries
• Power plant emission norms
will ‘institutionalise’ action points in their charge.
India’s formal regulatory infrastructure has
owe er it does not spe if what instit tiona i in
traditionally focused on ‘point sources’, with good
entails, and who would be held responsible if targets
reason. Industries and power plants burning coal
are not et and what e a or nan ia i p i ations
are the second and third largest sources in India
would follow.
(only behind the numerous but highly dispersed
household sources of emissions), in terms of
o stren then the there is a need to fo s efforts
contributions to average national exposure to air
on a prioriti ed short ist of so tions in the short ter
pollution and the resultant burden of disease.6 Power
improve the enforcement capacity of the PCBs while
plants are the largest source of sulphur dioxide and a
increasing their accountability, and begin extensive
major source of nitrogen oxide. Sulphur and nitrogen
consultations about governance reforms needed in the
oxides are key precursors that react with other
longer term. We elaborate on these below.
substances to produce secondary particulate matter.
MoEFCC introduced new emissions standards for
Prioritizing concrete actions power plants in 2015, which required the installation
Given the number of sources that contribute to the of pollution control equipment. Although the power
prob e and the an iti ation efforts needed plants were required to comply with these standards
(several of which are included within NCAP), how do by 2017, the Central Pollution Control Board (CPCB)
we prioriti e po i efforts rioriti in so tions needs later announced that the compliance date had been
active consideration of the implementation capacity pushed to 2022, as per a timeline prepared by the
needed to introduce measures and enforce them. In Central Electricity Authority. Ensuring that these

Policy Challenges 2019-2024 Centre for Policy Research 4

 Climate Energy and
The Environment

standards are complied with, and the requisite years to reach any meaningful conclusion, PCBs rarely
control equipment installed by this revised timeline, pursue this route, and restrict themselves to either a
if not at an accelerated rate, is critical. rap on the wrist through show cause notices, or shut
down the industries – making enforcement expensive
and ineffe ti e
• Revamp Ujjwala to increase LPG use
The Pradhan Mantri Ujjwala Yojana (Ujjwala) is an
Strengthening the ability of the PCBs to tackle point
important initiative. While primarily an energy access
sources could provide a pathway to a broader reform
programme, it has also tackled household solid fuel
process. In the long term, India needs a modern
use, which is the largest contributor to pollution
environment governance structure with teeth,
exposure in India. Ensuring universal continued usage
nimbleness and resources to plan and drive a multi-
of clean cooking fuels should therefore be a critical
sectoral strategy. NCAP is largely silent on how this
pi ar of o r air po tion ontro efforts o fa i itate
structure could look, and on a road map for reforms.
continued usage of LPG, the government needs to
We outline below near-term and long-term milestones
ens re that pri es are affordab e for the bene iaries
to strengthen regulatory capacity.
and in parallel, run campaigns to change behaviour
and attitudes. This is unlikely to be a rapid transition,
In the near term, PCBs must be resourced better,
b t so e i portant rst steps ha e been taken
and in parallel, be made more accountable through
dis os re efforts
• Invest in public transportation
Reducing transportation emissions would require a
• Increased resources of PCBs: Human resources
o bination of ens rin eas a ess to affordab e
rrent a ai ab e in s are not s f ient to eet
p b i and non otori ed transport whi e
their mandate. There is a need to rapidly expand
simultaneously working on reducing emissions from
their capacity, particularly on the technical side. In
the vehicles on the road. Investments in clean public
the short term, existing vacancies in the CPCB need
transport can reduce transport emissions as well as
to be ed with a i ed peop e orkin with
make mobility easier and cheaper, thereby improving
and the states in p a an ies in the state s
the quality of life in cities. Planning the public transit
sho d be another area of priorit n reased staff
strategy for the long term is key.
resources should translate to increased inspections
and monitoring.
Strengthening regulatory capacity
The formal air pollution regulatory architecture in • Increased accountability through public disclosure
India is built around the Air (Prevention and Control of regulatory data: The operations of the PCBs are
of Pollution) Act, 1981, the Environment (Protection) extremely opaque, and it is unclear to the public
t and r es and noti ations iss ed nder where the big polluting sources are, and whether
these. As per existing law, the state PCBs have very they are compliant with regulatory norms. Ensuring
i ited e ibi it to take a tion proportiona to the that PCBs release regulatory information (details of
polluting activity.7 Currently, they can send show cause consents granted, inspections, online monitoring
notices, shut down industries through a closure notice data, enforcement actions, etc.) into the public
or by shutting access to utilities, cancel regulatory domain would make the industries and state PCBs
consents, or initiate criminal prosecution by taking more accountable to local communities, civil society
the industries to court. With court cases taking several and the media.

42 Clearing Our Air of Pollution: A Road Map for the Next Five Years
 Climate Energy and
The Environment

Longer-term reforms will require extensive dialogue; • Development of a sector airshed approach: The
therefore, it is important for the government to start long-term strategy will need a careful application
deliberations early. We outline below three broad of sectoral approaches at the airshed level,
elements for change that should be considered in the or the nationa or state e e whi h ti i e an
reforms process. appropriate combination of administrative,
technical, economic and behavioural solutions.
• Remove legal barriers for effective enforcement: There
is a need for statutorily empowering PCBs so that they 4. Concluding Remarks
can initiate systematic and proportional responses to
Air pollution is a complex problem, with multiple
polluting activities. Amending the law to allow for a
so r es operatin at different re iona s a es
more diverse regulatory toolbox, which includes both
under the jurisdictions of disparate agencies, and
existing powers and additional ones such as levying
requiring a variety of mitigation measures. We
nan ia pena ties wo d in rease the e ibi it of
need to unambiguously acknowledge the terrible
the PCBs and make them more responsive.
impacts of air pollution on our health, move beyond
the urban-centric approach, and tackle each of
• Institutionalized airshed-level management: the big sources with a sense of urgency. The policy
a k in air po tion effe ti e re ires ookin for ta k in air po tion needs to shi t fro the
beyond administrative boundaries and focusing on reactive approach we have taken so far to one that
reducing emissions across the ‘airshed’ over which is ore s ste ati fo sin on so e efforts in the
pollutants disperse. This will need new modes of near term, and beginning the process to reform
coordination across city and state administrations, our environment institutions to make them better
and across line departments; it may also require the reso r ed as we as ore ni b e and effe ti e in
creation of new authorities with wider jurisdictions. the longer term.
Airshed level regulation will require a regulatory
rethink and would involve extensive consultations
which should commence on priority.

END NOTES

1. ea th ffe ts nstit te tate of oba ir http www stateof oba air or

2. pte osh a i hae ra er aron ohen a id ati and rden ope bient ed es oba and e iona ife
pe tan Environmental Science and Technology Letters 5(9): 546-551. https://doi.org/10.1021/acs.estlett.8b00360.
3. K. Balakrishnan et al., India State-Level Disease Burden Initiative Air Pollution Collaborators, ‘The Impact of Air Pollution on Deaths, Disease
Burden, and Life Expectancy across the States of India: The Global Burden of Disease Study 2017, Lancet Planet Health 3: e26–e39 (2019).
4. S. Chowdhury et al., ‘Indian Annual Ambient Air Quality Standard is Achievable by Completely Mitigating Emissions from Household Sourc-
es’, Proceedings of the National Academy of Sciences of the United States of America 116(22): 10711-10716 (2019).
5. See, for example, Techi Tagi Tara v Rajendra Bhandari & Ors (2018) 11 SCC 734.
6. orkin ro p rden of isease ttrib tab e to a or ir o tion o r es in ndia ea th ffe ts nstit te
7. S. Ghosh, ‘Reforming the Liability Regime for Air Pollution in India’, Environmental Law and Practice Review 4 (2015): 125-146.

Policy Challenges 2019-2024 Centre for Policy Research 43

 Climate Energy and
The Environment

Regulatory Reforms to Address

-
MANJU MENON AND KANCHI KOHLI

In India, industrial, energy and infrastructural projects rin the rst fo r de ades of i p e entation of
are legally mandated to seek environmental approvals India’s post-independence environmental laws, there
under a range of central and state level laws such as was little or no emphasis on the status of compliance
the Environment Protection Act, 1986, Air (Prevention with conditions by projects. The focus was on the
and Control of Pollution) Act, 1981, Water Prevention needs of the economy and national development
and Control of Pollution Act, 1981, and the Forest on the one hand, and on the other hand, the social
Conservation Act, 1980. Project approvals under these on i ts a sed b and disp a e ent en tho h
laws include environment and social safeguards or legal clauses related to environmental compliance
‘conditions’, such as reducing the pollution load due to existed in these laws, projects operated with impunity,
project operations, reforestation to make up for forest causing widespread degradation of the environment.
loss, and prohibition or limits on groundwater extrac-
tion. Projects are expected to comply with these safe- It is only in the last decade that environmental
guards during construction and through the period non-compliance by projects and the inability of exist-
of operations n ase of inin pro e ts ba k in ing institutions to enforce laws have come under the
and ecological restoration of the land also form part s anner in e the of e of the o ptro er and
of the safe ards n effe t the p rpose of onditiona Auditor General (CAG) has produced environmental
pro e t appro a s is to ini i e and iti ate en iron- audit reports and reported on non-compliance. The
mental and social harms caused by large projects. courts have observed large-scale legal violations in spe-

44
 i se tors s h as inin on o ern enta st dies Today, the impacts of unregulated projects have made
have also recorded high rates of non-compliance. it politically unfeasible for governments to ignore
their effe ts on the e ono and on peop e he
Unable to brush the problem under the proverbial re ent on i t d e to the operations and proposed
carpet, the government engaged in a series of expansion of the Sterlite Copper Smelter in Tamil
hurriedly thought out mechanisms to deal with it. Nadu is a case in point.1 The project was India’s
These include: largest copper production plant but also causing
toxic emissions, soil and water pollution. Despite
• Self-regulation through the use of pollution numerous complaints and legal cases against the
monitors or devices to capture and relay information project’s pollution, the company was allowed to
on pollution and other performance indicators continue its operations for 20 years. Last year, when
directly to pollution control board authorities the company sought permissions to expand its
operations, there were massive local protests for over
• ro isions for pena ties nes bank arantees and da s the na t rned io ent when the o a
other nan ia disin enti es based on the po ter police shot down 13 protestors. Sterlite also became a
pays’ principle po iti a ashpoint with the opposition part akin
it an important issue in their 2019 election campaign
• One-time amnesty schemes to violating projects in the state.
and grant of short-term or temporary approvals to
io ators in an effort to brin the into o p ian e There are numerous cases that are being litigated
in court for non-compliance with environmental
But these measures have neither improved safe ards hese ha e res ted in h e nan ia
environmental performance of projects nor stemmed implications for projects and for related economic
the ow of o p aints and e a ases b affe ted sectors as a whole. The Goa mining case led to the
people against polluting projects. total state-wide ban on mining since 2012. The
National Green Tribunal imposed penalties of over
Why Should Compliance Be Addressed rores as nes for en iron enta io ations in
Urgently? the rst arter of an a o nt that is ose to
the tota nes i posed ast ear
Robust and well-thought-out environmental
compliance mechanisms are hardly seen as Poor compliance causes critical environmental
a necessity for India’s development. In fact, blowbacks in the form of severe water shortages,
governments have approached the idea of regulating productivity losses and toxic air. While these
projects as a liability and a drag on economic conditions have been building up in most parts of
growth. They have been slow to implement existing the country, climate change dynamics add to these
regulations and selective enforcement has earned local conditions, making their impacts far more acute
them the reputation of creating a ‘license raj’. This and o p e or e a p e areas a read affe ted b
an be seen in the pre e o rt s on oin efforts large-scale water extraction for industrial purposes,
to enforce the mandatory emission standards on coal coal washeries and thermal power plants could
power plants. Even though the standards have existed also face frequent and more lasting droughts. The
for several years as part of the consent permits issued isib e effe ts of en iron enta i pa ts in erodin
under Air and Water Acts, the central government the positive gains of development have already
systematically dragged its feet on getting projects to a sed a shi t in ainstrea e ono i thinkin
comply with the norms. that traditionally ignored the economic cost of

Policy Challenges 2019-2024 Centre for Policy Research 4

 Climate Energy and
The Environment

degraded and damaged habitats. It is accepted that to improve the quality of our economy’s growth. The
crisis management is hardly possible any more, and question, therefore, before the new government, will
that there is a need to plan reforms and strategies no longer be ‘if’ projects need to be regulated but of
for economic and environmental transformation. how to regulate and who will regulate. Given below
Environmental compliance systems will form a key are three sets of policy reforms with the potential to
part of these reforms. shi t the o ern ent s approa h to the prob e of
environmental compliance of projects and achieve
The case for compliance as a bulwark of better results.
environmental regulation has never been more
compelling than in the time of climate change. So Compliance-based approvals
far, the success or failure of compliance has revolved Agencies implementing environmental laws view
around the compulsions of domestic politics, but the procedures for grant of approvals as linear
it is now tied to the geopolitics of climate change. systems rather than cyclical ones. This problem is
ter ears of wran in o er who sho d do what to best i strated b the n ber of ow harts p t o t
he k oba war in nations na thrashed o t by them explaining these procedures. Compliance
the Paris Agreement, which obliges every signatory comes downstream in these processes and there is
to put in place, by 2020, a set of measures to meet little room for feedback. Project performances on
their respective carbon mitigation targets. However, o p ian e a ost ne er in en e o ern ent
without a systemic and robust protocol to ensure decisions on project expansions, extensions or
compliance, India runs the risk of falling short of its applications for permission by violating companies
targets. Therefore, it is imperative, not to mention to set up projects in new areas. For example, the
politically expedient, for the political party coming Kulda opencast mine operated by Mahanadi
to power a ter the enera e e tions to set p in oa e ds in ndar arh distri t of disha has
the rst p a e a redib e and effe ti e e hanis of violated several conditions of its approvals. Yet, it
compliance with domestic regulations before it goes received approval for expansion and capacity addition
about honouring its Paris commitments. twice in two years, for a period of one year each.
The validity of environment clearances for mining
Who Should Regulate Projects and How projects is otherwise 30 years. This decision of the
Expert Appraisal Committee (EAC) set up under the
essi e o ern ents ha e e phasi ed the n iron ent pa t ssess ent noti ation
quantitative aspects of economic growth. They 2006, to review such projects was ad hoc, with no
have focused on increasing the number of projects precedence and legal basis.
approved during their tenure and reducing the
time needed for impact assessment and granting The lack of systemic mechanisms to address non-
approvals. These projects have been accompanied compliance in recent years has also created huge
by severe impacts as pollution and environmental pressure on the bureaucracy to show legal compliance
de radation are iewed as the trade off for rowth witho t affe tin the nan ia stat s of on oin
However, with over 16,000 centrally approved large operations or this the ha e offered one ti e
projects operational and several others promised amnesty to violating projects under the EIA, Coastal
or in the pipeline, the scale of the problem has Regulation Zone and biodiversity laws. But these
today expanded exponentially in both industrial measures only improve the record of compliance on
and reen e d or ess ind stra i ed areas he paper and not in reality. Now with so many projects
government can neither ignore nor delay tackling this already operational, it is crucial to place a very high
problem. Compliance with environmental and social bar on projects being granted approvals. The basis of
safe ards is a ne essar if not s f ient ondition re ator pro ed res sho d shi t fro appro a s

4 Regulatory Reforms to Address Environmental Non-Compliance

 Climate Energy and
The Environment

to compliance. Only those projects that have an But practices that foster community participation
established record of high compliance or which can ¬– such as social audits of projects (which provide
surpass the compliance performance of others in the access to monitoring data and formal spaces for
e d and ertain eet the e a standards sho d intera tion with affe ted peop e are et to be
be granted permits and approvals. The permissible s ste ati ed in en iron ent re ation
standards for pollution are already pending major
reforms. But these changes will prove futile if projects Integrated regional networks for compliance
are not held to the highest compliance standards. India’s environment regulations have largely been
implemented with a project-centric approach.
Third-party monitoring ppro a s are ranted to pro e ts a ter their i pa t
The present practice of monitoring a project’s st dies ost bene t ana sis and en iron ent
o p ian e in effe t in o es two parties the pro e t management plans are assessed by regulatory
proponent and the regulatory authority. This system bodies. These assessments routinely understate the
has so far not been able to address the problem of potential impacts of projects, making them seem
non-compliance and has instead led to concerns of benign or operations whose impacts can be easily
collusion and corruption. A review of this practice mitigated. Such assessments also generate quicker
has resulted in recommendations that monitoring approvals from regulatory bodies, thus helping to
should be done by an independent third party. The meet the government’s economic growth targets.
environment ministry proposed an amendment to For long, activists and experts have demanded
the noti ation in epte ber to in de cumulative impact studies so that the full range of
this re o endation his is et to be na i ed he project impacts can be ascertained prior to the grant
‘third party’ proposed in this amendment is expert of approvals. But such comprehensive studies have
government institutions. been done only in a few cases. Cumulative studies are
needed not just at project levels but also for regions
In reality, the genuine ‘third party’ in this context is that are affe ted b en iron enta de radation
the o nities who e perien e effe ts of non
compliance such as loss of livelihoods, poor living Similarly, a project-based monitoring system is
conditions and displacement. Although they have reso r e intensi e and not er effe ti e in ter s
the greatest stake in remedying the damages caused of the overall outcomes. But if regulators could be
by non-compliance, they are nowhere in the picture reor ani ed as inte rated re iona networks the
when project monitoring is done. This is contradictory could use the resources available to them more
to the participatory turn in environmental governance ef ient to i pro e en iron enta standards
in several countries since the 1970s and the regionally. Multiple regulatory agencies within the
constitutional mandate for it in India. Data from our concerned region could pool their expertise and
research on cases of environmental non-compliance human resources towards coordinated responses.
in four states shows that when communities have Such a mechanism can bring an inter-displinary
been involved in collection of evidence, reporting approach to compliance monitoring. The regions
of io ations and of ia onitorin b re ators identi ed for s h inte ration o d t a ross
en iron enta o p ian e an i pro e si ni ant administrative boundaries such as districts or
Their participation also helps regulators understand states. It could be at the level of large industrial sites
community priorities for remedial actions. Regulatory like Special Economic Zones (SEZs) with multiple
bodies in these states are be innin to re o ni e the projects operating within them, metropolitan
bene ts of o nit parti ipation and are ore regions, entire districts or geographical regions
open to including communities in procedures such a read identi ed as riti a po ted or entire
as site visits conducted by them for monitoring. airsheds or river basins.

Policy Challenges 2019-2024 Centre for Policy Research 4

 Climate Energy and
The Environment

Although envisaged by law, such a regional approach longer restricted to project areas, a regional approach
to environmental governance has only been used in is needed to improve the outcomes of regulation.
a few cases. It has been used in emergency responses
to environmental pollution, such as the moratorium Conclusion
on industrial activity in Vapi, Gujarat, or the ban on Environmental compliance is a critical part of
mining in Goa. But a regional approach to system- environment regulation. While regulatory actions
atically improve post-approval compliance of pro- ha e prioriti ed e ono i rowth for se era
jects has not been envisaged. This is mainly because decades, the costs of environmental degradation
compliance with safeguards has rarely been the focus due to industrial and developmental projects are no
of regulation and institutional reforms to improve longer possible to ignore. These issues have become
environmental compliance have never been on the politically and economically salient in recent years.
government agenda. The ministry could develop This paper makes three sets of recommendations
pilots to understand the optimum scale at which for how environment regulation can approach the
such integrated compliance networks could deliver issue of persistent and pervasive non- compliance by
the ost effe ti e res ts i en that the s a e of the projects. These reforms are critical to avoid the costly
effe ts of non o p ian e is s h that the are no and harmful disruptions of development.

END NOTES

1. https www rstpost o india ster ite protest in t ti orin opper o has fa ed e a batt e sin e in eption o er en iron enta on-
erns ht and on i t at h and t as ha e an ases of re orded and and en iron enta on i ts a sed b operationa
projects.

48 Regulatory Reforms to Address Environmental Non-Compliance

 Policy Challenges
2019 – 2024 ECONOMY

The Indian economy faces many challenges. Economists agree that many of the
refor s i p e ented a ter the risis are now osin o ent ew ha en es
are e er in d e to the han in oba d na i s and str t ra weaknesses in the
e ono fa t identi es so e of the ost r ia threats fa in the ndian
e ono and offers a s ite of so tions to sta e the off his in des dis ssions on
the idd e in o e trap that awaits ndia if str t ra refor s are not i p e ented
the o ntr s ai in infrastr t re risks to its in est ents the obs risis and the on
i nored a ri t ra se tor

Policy Challenges 2019-2024 Centre for Policy Research 49

 Economy

Underachieving Indian Capitalism

and the Middle Income Trap

Can India Achieve Sustained Fast Growth? The s ndias fast rowth s stainab e e ent e ono i
data indi ates de inin ons ption anae i pri ate
Two Faces of Indian Capitalism
in est ent di inished orporate perfor an e
n the ast few ears ndia see ed to ha e a hie ed a ri t ra distress and s owin rowth
the s bo i oa of rowin faster than hina estions ha e a so been raised o er the statisti a
at east a ordin to of ia statisti s and was rob stness of re ent rowth athin o of the ri e
fre ent hai ed as the fastest rowin ar e inister s ono i d isor o n i has raised
e ono in the wor d i re he prin the iss e of str t ra prob e s eadin to a idd e
or d ono i t ook fore ast ontin ed in o e trap inked to ine a it and asso iated
opti isti prospe ts with a s i ht a e eration in fai res in prod ti e e p o ent rowth The
rowth to b e en as hina and the ono i r e a so referred to the ha en es
ad an ed e ono ies are pro e ted to de e erate of prod ti e transfor ation h an apita and
a ri t ra distress

0
Figure 1: ndia o ertakes hina in the rowth stakes
GDP per capita growth (3-year moving averages)
-
14%
12%
10%
8%
6%
4%
2%
0%

2000

2003
2004
2002
1998

2006

2008

2016
1991

1995
1996

1999

2009

2011

2015

2017
1997

2005
2001

2007

2013
2014
1993
1994

2010

2012
1990

1992

China India

Source: World Bank

ndias e ono ho ds reat potentia b t there is a bi s h as the e ian e and dani ro ps see to ha e
risk that this wi not be trans ated into rea it e ati e both hi h prod ti it and hi h e e s of in en e
to its in o e e e ndia has both a hi h di ersi ed hen be ond the orporate b siness se tor there
e ono and we de e oped or ani ationa are i ense n bers of se f e p o ed s a and
apabi ities in the b siness se tor hese presa e edi si ed r s in the infor a se tor
tip e opport nities to p rade reinfor in assi
for es for on er en e as the o ntr at hes p hese feat res resonate i id with hara teristi s of
with those at the te hno o i a frontier hese for es atin eri a apita is his an be seen as ha in
are o p e ented b the potentia de o raphi three t pes of enterprise onne ted p to rats with
di idend as o n ohorts enter the abo r for e a or in en e o er the state s ste s h as ar os
i in e i o and other e i an bi ionaires the rest
owe er on rrent trends ndia is en ro te to the atin of the b siness se tor that str es with re ation
eri an path in whi h episodes of fast rowth tend poor infrastr t re and weak ski de e op ent and a
to sta in the on r n i ns of atin eri ani ation er ar e n ber of s a s a e infor a enterprises
ie in the onso idation of what has been referred to as with weak a ess to for a redit e a re o rse
o i ar hi apita is with its drawba ks of widespread infrastr t re and odern prod ti e s pport
infor a i ation risin e tre es of ine a it and a s ste s o ntries s h as e i o and ra i had their
orporate nan ia ne s of bad assets that risks rowth episodes of fast rowth and then ot st k in a i of
and a roe ono i stabi it ow prod ti it inef ient so ia po i and periodi
macroeconomic crisis.
r interpretation of a idd e in o e trap in this
paper is an essentia po iti a instit tiona a o nt s in e i o or ra i apita is in ndia operates in
e bedded in the nat re of the re ationship between a s ste that is hara teri ed b both for a r es
the state and b siness and between the state and and ess for a dea s ea s refer to both broad
so iet ndian apita is has two fa es d na i nderstandin s and parti aristi re ations between
o petiti e and prod ti it oriented and onne ted the state and b siness t r es a so atter es an
rent e tra tin and orrosi e po iti s o e se tors be in tension with dea s when the atter ai to s b ert
and o panies are ore rent e tra tin than others the for er b t h brid arran e ents s h as when
t an fa e both wa s ar e ndian o panies r es are app ied in the i p e entation of dea s are

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

o on ar os i ot his bi break thro h the rowth stor was do ed b on erns o er hi h e e

e a pri ati ation of e i os te e o o pan b the orr ption and risin ine a it series of s a s o er
then president ar os a inas ost of e i os other nat ra reso r e a o ation he ped onso idate p b i
bi ionaires were a so a n hed then nd this was when an er aro nd entren hed po iti ian b siness inks
e i o was a read si ni ant ri her than ndia toda sp rrin a nationa anti orr ption o e ent n e ite
oterie of ndians was seen to be p in the strin s
es atter when i p e ented we the p a of po iti s and b siness and p b i senti ent ra ied
the essentia ro e of pro idin redib e threats and aro nd these so ieta shi ts
pena ties for n awf dea akin in addition to
dea in with the arra of on erns o er standards hi e ho seho d s r e s s est ine a ities are sti
safet and prote tion t an o er re ated r e h ower in ndia o pared to atin eri a there
based e ono an rowd o t in est ent and st ie is e iden e of ontin ed on entration of wea th and
rowth ndias e ono has e o ed fro bein a ase in o es at the top of the distrib tion o binin ta
st d in o er re ation to f n tiona a h brid of data with ho seho d s r e data han e and ikett
r es and dea s f the b siness po iti s ne s it an be estimate a large increase in the income share of the top
said that the re ationship an no on er be nderstood at hed b a orrespondin de ine in the share of
as either de e op enta or ron apita ist it is both 3 the botto ha f of the pop ation 4 this eas re the
differen e in in o e rowth between the top and the
ndias a or rowth a e eration o rred in the rest of the distrib tion was e en reater than in hina
s t in o ed a strikin rowth in a re ate and the both notorio s for their ine a it rise
and in parti ar pri ate in est ent and e ports
oth fa es of apita is were anifest here were ore spe i anifestation of rowin ine a it
si ni ant strides in b siness apabi ities and apita ist is the rise in wea th of ndias bi ionaires a ost a of
instit tions owe er e en as sk ro keted ndias whi h is f e ed b b siness s ess i re

Total
Figure 2: he wea th of ndias top ten bi ionaires Net Worth
rose rapid between and
Total Net Worth

150
140
130
120
110
100
90
80
70
2014 2015 2016 2017 2018

Total Net Worth

Source: Forbes.com

2 Big Potential, Big Risk: Underachieving Indian Capitalism and the Middle Income Trap
 Economy

r ia herita e of the period of head rowth has his rise in s a on side re ent setba ks to ndias
been a dra ati rise in reported non perfor in shadow bankin ind str is a r ia onstraint to
assets s in the bankin s ste s are the ow of redit and pri ate in est ent whi h has
prod ts at east in part of past state b siness inks sta ed in re ent ears ross apita for ation as a
espe ia between p b i se tor banks and in entia per enta e of is ho erin aro nd its owest
b sinesses s were o er of ross ad an es in sin e i re eported new in est ent
for p b i se tor banks with a sti hi h for proposa s ha e a so been fa in steadi sin e
net s net s are net of pro isions

Figure 3: he rise and fa of ndias in est ent rate

Gross Capital Formation (% of GDP)

45
40
35
30
25
20
15
2003
2004
1998

2000

2002
1996

2011

2016
1997

1999

2001

2006

2008
2009

2017
1991

2005
1993

1995

2007

2010

2013

2015
2012

2014
1992

1994
1990

Source: World Bank information base

eso in the risis an in reasin i portant or e er ad inistration that fai s to p t in p a e the

po i priorit in re ent ears is ne essar b t not instit tiona and po i pre onditions for d na i
s f ient he infor a se tor ontin es to do inate in si e de e op ent there is a per anent oss
the e ono with o er of non a ri t ra in prod ti e and h an potentia ai re to a t
workers e p o ed b the infor a se tor and i ro now eans another ohort of ndias o th bein
a and edi nterprises s ontrib tin s bstantia i e ipped to parti ipate in prod ti e
o er a third of et the esti ates that for a work fosterin f rther in reases in ine a it
redit hanne s a o nt for on of debt nan in
in the se tor en ore riti a is the risk of f rther entren h ent
of b siness e ites with respe t to their inks to both
the state and inorit shareho ders reatin an
The Urgency of Action
oligarchic capitalism that heightens resistance
h is a fo s on the f n tionin of ndian apita is to f t re instit tiona transitions to d na i
so i portant for the in o in ad inistration o petiti e apita is

Policy Challenges 2019-2024 Centre for Policy Research 3

 Economy

rther ore the oba e ono i onte t is h has set o t a so nd fra ework to reso e
ore anae i than the sweet spot of the ear s s and shi t power fro pro oters to reditors
on ter rowth is s owin thro ho t rope and translating the promise of the IBC into practice
the en hina the ain a tono o s so r e of re ains a ha en e data a ai ab e nti an ar
rowth in the oba e ono is in the idst of both indi ates that reso tion has been appro ed
a on ter s owdown as its e ono at res and in ases so far n o kin bi ion for
on erns o er nan ia fra i it reditors t the pa e of reso tion a s the t s
ide ines e re io s in so e ases n addition
ina oba te hno o i a han e wi in rease ontin ed i i an e is re ired to ens re that ti ht
in enti es for in reased a to ation in the e ono e i ibi it ide ines for potentia b ers do not
his is ike to ha e profo nd effe ts on the work trans ate to in reased orporate on entration in ke
opport nities for ndias abo r for e with as et i se tors nderpinnin the broader ha en e
nderstood onse en es is the need to s stain the a tono of the entra
bank whose independen e st be prote ted and
hese de e op ents wi ha e a or distrib tiona n ha en ed b the e e ti e
di ensions that threaten po iti a stabi it he
intera tion between a onso idation of o i ar hi (2) Competition: na is and inno ation re ire
apita is and the ess fa o rab e oba onte t is o petition an se tors are a read on entrated
wh the risk of a atin eri an st e idd e in o e and there are risks of f rther on entration in
trap is so salient. the onso idation fo owin reso tion and in the
f t re ia network effe ts in p atfor based se tors
his is i id i strated b the debates in rope
A Policy Agenda
and the o er p atfor based o panies his
hether ndia rea i es its rowth potentia or ets re ires an e powered a tono o s o petition
st k in a idd e in o e trap depends on both a thorit and a so ontin ed inno ations in
po i hoi e and instit tiona desi n oidin the re ation in the wake of te hno o i a han e
Latin American path of oligarchic capitalism and e i oa t a reated a stron a tono o s
widespread infor a it in o es b i din the basis o petition a thorit with a d na i head who
for a d na i in si e and o petiti e apita is o d not be re o ed b the e e ti e t its
his re ires in the resonant phrase of a h ra a tion on anti o petiti e beha io r in din
a an and i i in a es sa in apita is fro of bi ionaire inked o panies ot st k in the
the capitalists’. eb i din state b siness re ations di iar with essons for ndia nfrastr t re and
in an open o petiti e r es based fashion is nat ra reso r es are a spe ia ase whi e a tions
essentia e o t ine si o p e entar areas he are an i portant step i p e entation is a ain
o p e entarit is riti a as is an o erar hin the e r ia he ost notorio s atin eri a wide
that witho t instit tiona deepenin with respe t to orr ption s anda of the re ent past in o in the
a o ntabi it a tono and transparen these ra i ian on o erate debre ht in o ed a series
po i ies wi be s b erted of ontra ts won in o petiti e a tions for s
he hi es hee was in the rene otiation phase
(1) Resolution of NPAs: riti a to rea redit ows when on essionaires o ten e tra t bi ad anta es
in estor senti ent and the broader a roe ono i n a ternati e desi n is to ake rene otiation a so
hea th of the s ste is the effe ti e reso tion of s b e t to redib e third part s r tin and de ision
s hi e the nso en and ankr pt ode akin with transparent pro esses

4 Big Potential, Big Risk: Underachieving Indian Capitalism and the Middle Income Trap
 Economy

(3) Better rules: hi tin the ba an e to r es deepenin of nan ia in sion and a ess to redit
based intera tions re ires better r es here a data dri en reorientation of and rban
has been a p a sib e fo s on the oin siness ski in pro ra es and na a re a pin of
indicators and healthy interstate competition on towards e era in orporate o parati e ad anta e
the rankin s owe er internationa e iden e nds in fa o r of s pportin b siness enterprises instead
that these notiona eas res are o ten o p ete of o ern ent pro ra es
nre ated to a t a e perien e whi h depends on
i p e entation he refor sho d he p in the (6) Industrial policy: ina there is a potentia
on ter b t the osts of parti ipation o ten sti i portant ro e for se tor spe i ind stria po i
see to o twei h the bene ts espe ia for infor a n this re ard ndia has both s esses and fai res
r s f spe i i portan e are the o p e areas he a to ind str has bene ted fro a series of
of and a isition and abo r po i hi e there has state a tions that ed to a prod ti e se tor stron
been a tenden a on st e ono ists to fetishi e inte rated with oba a e hains notab in
abo r e ibi i ation as the issin in redient for a i ad e tor spe i p b i oods s h as on
abo r intensi e ind stria i ation it is no pana ea ationa to oti e estin and nfrastr t re
the oa has to be de inkin so ia prote tion fro ro e t are a so e a p es of s esses ontrast
the abo r ontra t if inef ient infor a i ation the pe ia ono i one po i o ten be a e
is to be dis o ra ed this is a spe i brid e to asso iated with and dea s ffe ti e st ent r
o prehensi e so ia po i ies ind stria strate ies re ire both ose ooperation
with the b siness se tor and a fo s on se tor spe i
(4) Facilitating implementation: he b rea ra has p b i oods rather than a bias towards prote tion
in the past been in the prod tion ine of on ertin or ta breaks b t a so s f ient a tono fro
po iti an b siness dea s into the pre ai in r es b siness obbies or espe ia a po iti ian b siness
ith the desirab e anti orr ption otif there ne s to a oid onso idation of inef ien and
is widespread referen e to the hi in effe ts on rent e tra tion redib e s nset a ses to s pport are
appro a fro both b siness and b rea rats o e one e a p e of an instr ent
red tion in the e essi e e a risks for b rea rats
ha e o e with han es in the d re ation his is on an o t ine of po i do ains hi e the
in whi h pre io s ri ina i ed b rea rats o p e entarit between the is ita e en ore
for an oss to the o ern ent e en if there was no i portant is the wa in whi h the state beha es in
intent b t the effe ts are sti n ear dditiona their i p e entation nd ke to this are the he ks
a tion s h as new third part pro esses for ontra t and ba an es that ie at the heart of the a o ntabi it
rene otiation st referred to an he p his is an e hanis s that nderpin state beha io r
area where on erted e p oration of i p e entation
design is important. hese are of two o p e entar kinds irst
there are he ks and ba an es within the state
(5) Inclusion: eepenin instit tiona s pport for f nda enta in the independen e of the di iar
s a s a e and infor a enterprises wi re ire b t a so the f arra of re ator a en ies and
a who e s ite of po i han es a ross se tors the in enti es that the fa e ndia has had p ent
and a on the a e hain ro idin ore rob st of e perien e of a o ntabi it instit tions notab
s pport to s in din those in r ra areas wi in the on ter independen e of the e tion
re ire enhan ed infrastr t re pro ision a on the o ission and the pre e o rt oth howe er
ines of the radhan antri ra adak o ana a are in reasin seen as s b e t to in en e with

Policy Challenges 2019-2024 Centre for Policy Research

 riti a a tors in both takin npre edented p b i o nterba an e in instit tiona and so ieta ter s
eas res to de r per ei ed threats to instit tiona o p e ented b stren thenin not weakenin of the
a tono and ond t apabi ities of the state or whi e ndia has a tradition
of er hi h a it indi id a state a tors and a
e ond there is the press re fro i i so iet rep tation for an o erbearin state presen e a rea iss e
whether weak and i perfe t ia periodi is weaknesses in state f n tiona it
e e tions or thro h on oin i i so iet a ti is
o er state perfor an e ia an e hanis s his is he atin eri an e perien e shows that rowth
hea i in en ed b the a ai abi it of infor ation an o r for a whi e nder onditions of o i ar hi
for whi h the ario s kinds of edia p a a entra ro e apita is and widespread infor a it ndia
nfort nate the traditiona edia in ndia is ar e has i ense e ono i potentia for whi h the
owned b bi b siness and ost s pine on state b siness se tor is r ia owe er n ess there is a
b siness on erns o prehensi e a enda of po i and instit tiona
han e to reate a d na i apita is there is a risk
here is roo to stren then both the e hanis s of of a atin eri ani ation of ndias path that wi
a o ntabi it that be on with the state and those that onso idate a idd e in o e trap of ow prod ti it
be on with i i so iet hat is needed is a en ine rowth and entren hed ine a it

END NOTES

an t r n wor d s fastest rowin e ono on e p o ent s pport st reate e p o ent e ber athin o Indian Express,
26 May 2019, https://indianexpress.com/article/india/rathin-roy-indian-economy-employment-pmeac-idea-exchange-5748449/.
o ern ent of ndia Economic Survey of India 2017-18 ew e hi o ern ent of ndia
3. see a inha ndia s oro s tate rred o ndaries and the o in siness tate e ationship in Business and Politics in India edited
b hristophe affre ot t oh i and anta ra i ew e hi ford ni ersit ress
4. han e and ikett ndian n o e ne a it ro ritish a to i ionaire a is ssion paper
ashin ton enter for ono i and o i esear h
a h ra a an and i i in a es Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread
Opportunity ew ork ando o se

Big Potential, Big Risk: Underachieving Indian Capitalism and the Middle Income Trap
 Economy

Image Source: Dhiraj Singh | Bloomberg

A Relook at Infrastructure

he ost and re iabi it of e e tri it and o isti s an of the ha en es in power ha e been addressed
is a a or dra on o r an fa t rin a bitions e sewhere in this do ent b other o ea es so
and sewa e fro o r ities is ki in o r ri ers et wi be brief here enewab e ener apa it in
infrastr t re has fa en off the po i radar despite ndia has rown rapid as be ts the pro enitor of
the ontin in ha en es e ident ost i id in the the nternationa o ar ian e nsta ed apa it of
nan ia se tor s non perfor in assets hat is wron wind so ar s a h dro ess than bio ass
and how an we it e o t ine the ke a tions that and other s h so r es ha e rown se en fo d fro
need to be taken in the a or se tors to ake the se tor of rid apa it in ar h to
nan ia iab e and s pport o r e ono i oa s of rid in ar h

he share of eneration fro these so r es is now

Electricity
et the share of ther a so r es pri ari oa
oda when o r insta ed apa it is a tip e of o r re ains at e ept that it now operates at an
e pressed de and a tho h the e pressed de and inef ient p ant oad fa tor instead of in
a be ess than o r need the ob e ti e of power e ha e been r nnin to sta in p a e he
s pp to ons ers whether ind stria residentia risin share of renewab es has rep a ed the a k of
or o er ia at ef ient and o petiti e pri es rowth in ar e h dro so r es an o t o e whi h
sho d be within rea h hat is stoppin s a ad itted ha e other en iron enta bene ts
 Economy

nte ratin the f spe tr of non fossi f e s bsidise residentia and a ri t ra ons ers
reso r es into the rid is th s ore dif t than e annot ki ind stries to keep sa i e
st in reasin apa it of renewab e so r es o he network has the te hni a apa it to a hie e
we a et to o r apa it tar et and et this ob e ti e espe ia for ind stries that re ei e
not a hie e h in ter s of transfor in the power at hi her o ta es s ha e sed their
arbon intensit of o r e e tri it s pp ni ersa s pp andate as an e se to pre ent
ind stries fro a essin o petiti e pri ed
as p ants the a nted iti ators of i ate power owin s to pro re in re enta
e sewhere re ain a ost n ti ised r nnin power and s pp the at o petiti e pri es to
at st abo t one th of their apa it ess than pa in ind stria ons ers is within the power of
ha f of the e e s ten ears a o ar e be a se the state o ern ents he a ternati e is open a ess
rrent tariff and a ess re i es ake the part of o r e e tri it e is ation for se era ears
n o petiti e and the ha e no f e s pp r b t i ited in its app i ation b o r state e e tri it
tro b es with do esti as e p oration re ators whi h is res t of a short si hted
for e a p e has ed to re ati e stasis in as approa h to prote t s
re ated in est ent en as the arket is
bein in reasin de inked fro oi with re ent e ond residentia and a ri t ra tariffs an be
pri es in sia droppin to ti ear ows o r rationa ised and in so e se ents raised n the
ter ina s re ain nder ti ised and nder era of dire t bene t transfers and in o e s pport
onne ted wor d where a as p ant an i port s he es pri e s bsidies ha e o t i ed their ti it
f e and it at a on enient ter ina and transport he red tion in s a s pport to the an be
it to its p ant b pa in an a ess har e to a redire ted to tar eted ons ers as a ash transfer
network operator see s er far awa to ins ate the fro the effe ts of the rise in tariffs
ore rationa tariff re i e a a so ead na
here is one root a se s that do not to o p ete eterin one an tra e e hortations
o e t one for power the se his one a se to eter a feeders ba k to twent ears a o and a
has an other anifestations prote ti e redib e a o ntin of e e tri it ons ption
re ators who are re tant to a ow open
a ess tariff re i es witho t ti e of da pri es hird we need to e tensi e e pand ti e of da
o er enero s feed in andates for renewab e pri in oda those that ons e ow ost base
power a ish ost p s tariffs for e a entra oad power bear the b rden of hi her pri e peakin
owned p ants with priorit power p r hase and other power be a se of a era in of tariffs
a ree ents with states et his is bein debated for a on ti e and is e en
sed in so e se ents in so e states t an a so
i en the o p i ated ess that o r power se tor ake the as p ants at a ti e of ow pri es
has been in o er the past an ears spannin a o petiti e red in o r arbon footprint
o ern ents trans endin this wi need a n
ber of a tions a ross the eneration trans is hese tariff a tions wi reate the enab in
sion and distrib tion se ents ad o ate three onditions for ens rin that o r rid is no on er
fo sed on tariffs bankr pt here wi sti be h work to re ita ise
s and address the h steresis of on ears
irst ind stria and o er ia tariffs need to of e bedded po iti a e ono onstraints
fa eadin hopef to a sp rt in obs he are before the an be ade iab e t this is a better
h ore than the ost of s pp ostensib to wa than and the reation of a nationa

8 A Relook at Infrastructure
 Economy

distrib tion o pan whi h is akin to a heart spe tr a ai abi it a ross the tions are
b pass witho t han in nhea th habits not ne essari effi ient if the ood bein so d is
t ost if ne essar the entra o ern ent in orre t b nd ed nstead spe tr needs to
an s pport the states in refor b be defined in h s a er eo raphi a nits
ad an in brid in oans to tide o er re en e see o
shortfa s in the initia sta es if an

There are many other areas for action. These

Example of Standard Spectrum
in de enab in a network that an inte rate
Trading Unit from Australia
renewab e power at the s a e it is bein en isa ed
rationa isin and odernisin o r oa p ants
the apa it t a ows s to take so e of the
of ine te porari or e en per anent if
ne essar strea inin o r as pipe ine rid and
pri in to a ow as p ants to o pete and pro ide
ba an in apa it for a renewab e hea rid et he stra ian o ni ations and
et here are a so an a tions that need to be edia thorit per its spe tr
taken to row an ener re ated an fa t rin spa e to be traded in ter s of standard
se tor t a of that is on possib e when pe tr radin nits hese s
the na ash eneratin end of the se tor a be is a ised as a be ts base o ers
distrib tion is iab e and hea th t is ti e we a eo raphi area en th and breadth
took this head on whi e bandwidth is eas red erti a
he eo raphi area is nifor and
de ned b in tes b in tes
Telecom of ar appro i ate k as a e
he te e o se tor bar one r see s to be of its spe tr ap rid he fre en
str in despite in reasin se so h so that bandwidth of an is set at for a
one wonders whether the p b i onopo before spe tr i en e bands ho h a sin e
te e o ibera isation wi ret rn in a different a not be sef its re ar shape
a atar espite rapid rowth and the spread of a ows it to be o bined with nei hbo rin
s artphones we are et to ens re that a sea ess s erti a to pro ide in reased
network o ers o r o ntr with both re iab e data bandwidth or hori onta to o er a ar er
and oi e h are we in this sit ation area h an a re ation of spe tr
spa e a ows spe tr i en es to be
ne a or reason is that spe tr is ispri ed o bined and s bdi ided er spe tr
t sho d be irt a free in sparse pop ated i en e has a spe i ed ini onti o s
r ra areas n ess there is on estion there is bandwidth tho h an is the
no reason to pri e it et o r rrent spe tr ini a o nt of spe tr that an be
pri in ode akes r ra spe tr as e pensi e traded tradin a be restri ted if an
as that in ities his is be a se i ensed er i e does not meet the MCB.
reas s are on r ent with te e o ir es
Source: https www a a o a nd str
i e states i in areas that are both ab ndant pe tr adio o s i ensin pe tr
and s ar e in spe tr his does not a ow i en es spe tr
r ra spe tr to be separated and affe ts

Policy Challenges 2019-2024 Centre for Policy Research 9

 Economy

f one o es to de ne and se spe tr o er s a er a ressi e for pro e ts b i se tor banks ent to

eo raphi a nits a re ate re en e a re ain the on the ba k of pro e ted ash ows that ne er
the sa e b t p a es with e ess spe tr a ateria ised ost the inan ia risis banks
et ore ser i e pro iders t e en if it fa s one were e t ho din n nished pro e ts ost of these
st estion whether the rationa e for spe tr ha e now been restr t red and restarted owe er
a o ation is to raise s a reso r es or whether it is the se tor sti needs to so e three ha en es
to e pand onne ti it a ross the o ntr
a arrier free o e ent for frei ht road traf
trains a ter a are not stopped at state borders
nother reason is that te e o ser i es a be
pri ed be ow e ono i ost an iss e for the se tor b ns rin aintenan e of the nationa hi hwa
re ator and o petition o ission of ndia to network
e a ine f e en the rowin r is s stained ore oidin white e ephant hi hwa s whi e
b inf sions o tside the se tor than its own s rp s retainin an appropriate risk reward fra ework
then as be o es the oba standard we
a nd that ndian te e o se tor is too nder or a on ti e open road to in was not possib e
reso r ed to adopt the new te hno o his wo d be a se offenders o d not be identi ed absent
not be a ood o t o e heap pri es now is too a nationa ehi e n ber database ow we ha e
hi h a pri e to pa for o tdated te hno o ater one and we ha e e wa bi s too e
sho d re o e a o r to p a as and o e to to
ina o r ni ersa er i e b i ation nd was antries be innin with hi h traf ro tes
s pposed to brin data to o r r ra o nities
and transfor their a ess to ed ation and or hi hwa s on the ode on ann it
hea th et instead of s hoo hi dren earnin fro or h brid ann it on essions there is a b i t
hi h bandwidth di ita ontent the are addi ted in mechanism to penalise operators for poor
to ow bandwidth so ia edia separatin one aintenan e s that workin hat abo t
from the other. hi hwa s on a apita rant ode or those
bein to ed b s the hi hwa network
e pands and be ins to a e a transparent
Logistics
e hanis to onitor and aintain the a it of
went ears a o the o ern ent e ied a r pee of roads needs to be ro ed o t
ess on petro and diese to f nd nationa hi hwa s
r ra roads and est one for et rai o er brid es ina h brid ann it ode s do not transfer
he h b e b t path breakin ess of is now traf risk to the pri ate on essionaire s the
the onster ei ht r pee road and infrastr t re network rows be ond the ob io s on ested
ess that no one protests pa in h then is o r ro tes there is a risk that roads wi et b i t
o isti s sti so o t oded where there is no traf e en in the near f t re
o foresta this we sho d swit h to on ession
Highways ode s that i it the transfer of periodi traf
here has been s bstantia in est ent in hi hwa s risk b t sti retain transfer of ifeti e traf risk
in the last administration. The adoption of models ike east resent a e of e en e ode s or this
ike brid nn it re ersed a s p a sed b we need to fa i iarise o r nan ia instit tions
on ession ode s that transferred e essi e with s h ethods
risk to the pri ate se tor who re ard ess had bid

0 A Relook at Infrastructure
 Economy

PMGSY: Rural Roads of ai wa s traf wi s ow down or e en de ine as

he onstr tion of p s ki o etres oa power is red ed and prod ed pro ressi e at
of r ra roads o er the ast twent ears a ross the pithead an ai wa s this freed p apa it
o ern ents of different po iti a pers asion is with other ar o ontaineri ed or otherwise and
testi on to the onsens s o er r ra onne ti it with re en e eneratin passen ers an it be o e
an states now ha e s pp e entar r ra roads a logistics company from a mere transporter from
pro ra es nan ed fro their own b d ets t one station to another he strate that is hosen
has ndo bted p a ed a a or ro e in o in o r wi ha e i p i ations for n ber and t pes of
workers off the far to new a ti ities and o ations o o oti es and ro in sto k he e o er e
he aintenan e of this network sho d now be par e se ent is a ood wa to start this
o r pri ar on ern he initia ontra ts transfor ation t wi for e the ai wa s to dea
had a b i t in aintenan e period an of whi h with inter oda it a ne essar in redient for its
ha e now on ded n instit tiona e hanis edi ter s r i a
to aintain the network needs to be p t
in p a e ne ode an be the perfor an e based b rban passen er ser i es are rban p b i
ontra ts of r entina broad si i ar to ser i e ob i ations his a ti it needs to be
the initia ontra ts b t for rehabi itation separated and osted hen it sho d be f nded
and aintenan e with pena ties for not eetin separate as for e a p e the rban etro rai
perfor an e o t o es pro e ts

Railways ina the ndian ai wa s needs nan ia

en ineerin oda a h e portion of its re en e is
en the owest tariff frei ht train akes ore
spent on pension bene ts for its retirees his is an
one than the a dhani e need to shi t the
ob i ation that wi pro ressi e red e o er ti e
on ersation aro nd ai wa s fro passen er to
as the effe t of the ationa ension he e be ins
frei ht a riti a o isti s f n tion essentia to
to show ai wa s an restr t re this predi tab e
s pport an fa t rin rrent tra k apa it
iabi it to red e its rrent e pendit re and free
is e ha sted r nnin passen er trains n the short
p reso r es for in est ent
ter it is ne essar to a prioritise si na in
in est ents on a war footin to e pand apa it
Ports
and b rationa ise passen er trains b o binin
capacity and retiring trains. oda is ite possib no on er the ndian
port that handles the most containers. That position
n order to deter ine whi h trains to retire the is ike he d b ndhra a port owned b the
ai wa s needs to de e op the abi it to ost ea h danis onne ted b a oint ent re rai tra k to
train whi h it rrent does not do he passen er the e hi bai rai orridor ndhra has an
s bsid n bers bandied abo t are an arti ia nfair ad anta e it an de ide its pri es
onstr t and an o er a re ated e er ise annot he tariffs at o r a or ports i e those
e e opin this ostin ethodo o is a priorit owned b the nion o ern ent are deter ined
b the ariff thorit for a or orts an
he edi ated rei ht orridors sho d a so free p ana hronisti ho do er in a o petiti e se tor he
apa it b takin traf awa fro e istin ines ariff ide ines noti ed this ear are a far r fro
he transport of oa whi h sti akes p abo t ha f the pri e e ibi it that ndhra en o s

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

ot on are the tariffs ri id deter ined the and o r ities poison it et with the possib e
str t re of o r a or port on essions are desi ned e eption of the ationa ission for ean
to ake it ost for o r traders to transport etween an a there is itt e pro ra ati effort ike the
a third and a ha f of the tariff is shared with the ationa i hwa s thorit for ndia for hi hwa s
o ern ent dependin on the port and berth to preser e o r ri ers and water bodies
sin e the ross re en e share is the bid para eter
t eans that tariffs o d be red ed b ha f in his is not st a atter of b i din sewers and
so e ases and the port wo d sti be iab e ike sewera e treat ent p ants a si ni ant portion
spe tr this is a ain an instan e where the r e of s h treat ent apa it ies n sed e a so
to raise s a reso r es pre ai ed o er the need to need to onsider the re k ess destr tion of e en
ens re o petiti e o isti s osts for o r ind str t ro ndwater reso r es b ind stries that dispose
is ti e to take three a tions their waste nder ro nd aided b in apa itated
po tion ontro boards the orridor fro at a
irst disband instit tions ike treat ports as a to api ri a s the worst po ted areas of hina
o petiti e se tor with tariff freedo for operators and the da a e a sed b he i a r n off fro
and i pro ed o petition o ersi ht his sho d o er se of pesti ides and ferti i er in a ri t re
be a o panied with a o e awa fro a re en e
share on ession str t re to a ed on ession fee ore than in and waterwa s ri er inter inkin and
ar e da s we need fo s on wastewater
e ond in est in port onne ti it to sp r inter port
and intra port o petition he risin share of non
The Digital Future
a or ports indi ates that there is rowin inter port
o petition e en with prob e s in road and rai en as we address these basi iss es di ita
onne ti it dded to this is intra port o petition te hno o ies are han in the wa infrastr t re
when there are tip e operators in a port is pro ided operated har ed for and aintained
a ross se tors hese te hno o ies per it ser i es
hird we need to re e a ine o r approa h to to be de i ered ore ef ient ess e pensi e
oasta shippin r eastern ports to ether with se ess reso r es a se ess da a e to the
ports in an adesh an ar and hai and an a t en iron ent and rea h a wider ser base his
as a sea brid e to o r northeast and inte rate o r wi not happen a to ati a or i k b t the
ind str with o th ast sian a e hains he a pro ess an be a e erated with an appropriate i
of en a wi b with riss rossin ships of re ator e hanis s and nan in too s

o ether these a tions a ross road rai and ports he a ai abi it of f nds is not the onstraint
a on with re ator a tion and in est ent to that wi restrain rowth of di ita enab ed
fa i itate ti oda transport wi red e o r infrastr t re he ha en e is to desi n pro e ts to
o isti s osts and ake ind str ore o petiti e ba an e risk and reward in a wa that pro iders are
in enti ised to ser e sers we whi e nan iers are
ins red fro the rea isation of n ontro ab e risks
Water Treatment
er a or it in ndia ki s at east one ri er en ne s h nan ia risk is the fast obso es in
as hennai dries and bai drowns e hi b ithe nat re of these te hno o ies where esterda s
po tes the a na r far s is ana e water ttin ed e is to orrow s dis ard his str t ra

2 A Relook at Infrastructure
 Economy

risk an s ow down the adoption of so ia bene ia in ter s of te hno o and the en iron ent or
te hno o ies ow adoption an a so be en ineered too on a ross o ern ents we ha e fo sed
b those who wi ose their in est ents fro new on akin one fro infrastr t re rather
te hno o ies his wi need p b i a tion in ter s of than seein it as a ser i e that an power rowth
nan in ode s and re ator o ersi ht and enab e the transfor ation of ndia f we did
ana e to on in e o r pri ate se tor to in est
eno h to et s to rowth we wi hit a wa
Conclusion
of infrastr t re onstraints e ha e i ed too on
r infrastr t re ode s are sti operationa off o r ear ier in est ent in the past few ears e
inef ient nan ia fra i e and f t re nread both cannot do so any longer.

END NOTES

enr b the o a ben h ark and in reasin an a ternati e basis is is oi for e port pri in has sta ed be ow per
bt for three fo rths of the ti e o er the ast fi e ears
his is to a oid sit ations where spe tr tradin eads to i en es that are too s a to be pra ti a res tin in ineffi ient se of spe tr
and nne essar ad inistrati e osts

Policy Challenges 2019-2024 Centre for Policy Research 3

 Economy

the Nation’s Employment Crisis

ndias abo r arket is ai in ddressin of the one in fo r wo en of workin a e enter the

e p o ent risis has been ired in a ra in debate abo r arket e a e abo r for e parti ipation has
o er the s a e of ob reation the a ai abi it of data been de inin sin e when it was 3
This
and whi h so r es and indi ators ne p o ent drop an be attrib ted to se era fa tors ran in for
or prod ti it and wa es a rate re e t instan e fro ir s sta in in ed ation on er and
the state of the ob arket he new o ern ent de a in their entr into the abo r arket to the
has an opport nit to o e be ond this debate idd e in o e effe t a k of de and fro fe a e
a know ed e what ai s the abo r arket and take friend ind stries s h as appare and footwear and
eas res to address the risis ontin in so ia disappro a are both i portant
factors.4 ther prits in de i ration and the
n eari ation of fa i ies where there are fewer
What are the Challenges?
wo en in the ho seho d to ontrib te to do esti
n one in two ndians of workin a e ears and work e a e or a e ow abo r for e parti ipation is
abo e parti ipate in the abo r for e n abo t a oss of pre io s prod ti e potentia

4
 ne p o ent is a so a oss of prod ti e potentia person et a ob b t witho t the re isite e e s
e ent data s ests that ne p o ent rose to of ed ation and soft ski s ti ated ear on
in rise in ne p o ent an ar e these pro ra es are n ike to offer e ono i
be e p ained b the fa t that ore o n peop e are obi it and areer pathwa s
a irin an ed ation ith ed ation o es the
e pe tation of a better ob hose who an afford to f these ha en es o naddressed the nation
ed ate the se es a so tend to be in a position to wi s ander its de o raphi ad anta e his
wait for the ri ht ob to o e a on brief window where the workin a e pop ation
onstit tes a risin share in the tota pop ation
hether one b s the hot ontested ne p o ent with a re ati e s a er dependent pop ation wi
res or not the possibi it of a rowin trend in s a sh t in appro i ate two de ades fro now
ne p o ent is a atter of on ern b t ar ab
ore pressin ertain in ter s of the s a e of the
How Can these Challenges Be Addressed?
prob e is the iss e of ndere p o ent he
a it of obs is as i portant as the antit of obs The nation needs a National Employment Strategy
and in ndia ore peop e str e with the for er that wi a down spe i oa s in the fo owin
than the latter. three areas

1. eneratin prod ti e and we re nerated

ost peop e in ndia annot afford to be ne p o ed
obs whi h entai s akin p b i a o ations to
the ha e to work to s stain the se es on those
s pport se tors that absorb ore abo r
who are workin infor a e p o ent as a share
of non a ri t ra e p o ent was in 2. akin end rin on ter in est ents in
nfor a e p o ent s a entai s the sharin h an apita thro h ood a it ed ation
of ow prod ti it work with poor wa es and the ski s and on the ob trainin
absen e of so ia prote tion
3. tren thenin abo r arket instit tions
ndias i ion o th between the a es of to in din tho htf refor of abo r
represent st nder of the o ntr s pop ation re ations the i p e entation of a stat tor
nspired b the narrati e of an e er in arket ini wa e and pro ision of so ia
e ono with hi h e e s of e ono i rowth prote tion espe ia ni ersa hea th are
ndias o th ha e risin aspirations et e ono i
tra e tories are not b i t st on aspirations and Ministries should submit annual action plans
potentia b t a so on opport nit an of ndias laying out how they intend to realize the goals
o th fa e onstraints in ter s of opport nit set out by the National Employment Strategy.
arisin o t of ow ho seho d in o e aste tribe he p ans sho d fo ow a standardi ed te p ate
ender spe ia needs or re i ion he ine a it of spe if in i on rete a tions ii reso r in iii
opport nit in one s o n er ears anifests in an etri s for s ess and i ti e ines hese p ans
ine a it of o t o es in ad thood sho d be s b itted to an appointed indi id a
in the ri e inister s ffi e a enior
nro ent rates ha e in reased b t earnin ffi er n har e onso idatin the p ans nder
o t o es re ain weak espe ia for o th fro the wi a so ens re oordination and
nerab e ba k ro nds ki s trainin espe ia oheren e a ross different p a ers n the ne t fi e
short ter pro ra es annot o pensate for ears the ationa p o ent trate sho d
ears of poor ed ation rainin a he p a o n fo s on the fo owin

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

Raising Productivity in Agriculture

ith of the e p o ed in a ri t re it is the ost abo r intensi e tho h the east
prod ti e of the nations se tors he o on de nition of str t ra transfor ation refers to
a rea o ation of e ono i a ti it awa fro a ri t re to hi her a e added se tors s h as
an fa t rin and ser i es t transitionin s h a ar e n ber of workers o t of a ri t re
and i k ndin the ainf e p o ent in other se tors is n ike ore rea isti
transfor ation o d be one in whi h the fo s is on i pro in prod ti it and onse ent
wa e e e s espe ia in a ri t re n reasin prod ti it is a better wa to red e nit abo r
osts than red in wa es

hort ter ash transfers to far ers are the a o r or ode townships to ndertake a series of steps to
of the season b t these address the s pto not enab e the rowth of an fa t rin r s espe ia
the a se ore effe ti e wo d be in est ents in s a ones with potentia
irri ation ener and transportation infrastr t re for
r ra areas whi h wi a ter roppin patterns towards e tors s h as a ro pro essin an be abo r
ore abo r intensi e and hi her a e rops ro intensi e and an boost both a ri t re and
ra es to ens re o petiti e pri in of inp ts s h an fa t rin b t this re ires de e opin
as ferti i er and re isin skewed s bsid str t res are do esti a e hains and asso iated infrastr t re
ke ddressin pri e o ati it to i e far ers a ess he ind stria po i sho d a ti e address iss es
to fair o pensation for their prod e o p ed with a ran in fro and earan es to a ess to power and
re ator fra ework that breaks the t re of abo r ta in enti es to he p bo ster an fa t rin r s
ontra tin and idd e en in far e p o ent wi espe ia s a ones with the potentia to row
he p a ri t re be o e ore prod ti e and a so
attra t absorb and retain ore abo r ina pro n addition to de e opin odern do esti a e
idin a ess to and re ords and rea rop ins ran e hains the nations ind stria po i sho d as ertain
espe ia to s a s a e far ers wi a so he p prote t how to s pport the e port apa it of r s and
the in ase of a risis en iron enta or otherwise en o ra e parti ipation in oba a e hains This
a s for a reassess ent of rrent tariff str t res
espe ia the in erted d t str t re to ake
Generating productive and well-
an fa t res ore o petiti e e st a so
remunerated jobs by focusing on sectors
e era e trade a ree ents and re iona inte ration
that absorb more labour: Labour-intensive
to ain arket a ess and stake ai in re e ant
manufacturing
a e hains
hen seen thro h a obs ens the o position of
rowth atters e en ore n addition to i pro in he atter in est ents in an fa t rin wi spawn
prod ti it and wa es in a ri t re o the ser i es in se tors s h as o isti s and transport
nation needs an ind stria po i that fosters abo r hese se tors wi be in reasin riti a for ob
intensi e an fa t rin he ationa p o ent creation in the coming years. All of these steps
trate sho d a for the for ation of an ind stria st be e bedded in so nd ph si a and ener
po i that prope s s be ond an ad ho s atterin of infrastr t re both of whi h wi the se es absorb
ind stria parks and estates spe ia e ono i ones abo r he o ern ent sho d adopt a ethodo o

A Clarion Call for Just Jobs: Addressing the Nation’s Employment Crisis
 Economy

to eas re the potentia e ono i i pa t and the basi s readin writin and arith eti rather
tip ier effe ts of a i en infrastr t re pro e t they can root learning in practical application. All
espe ia with re ard to its potentia to fa i itate dire t hi dren in s hoo re ard ess of ender or other
and indire t e p o ent his sho d be a riterion in so ia ro pin s sho d be e posed to a tit de of
tar etin p b i in est ent a ordin si i ar trades ender stereot pin in ski s trainin
is a disser i e to the indi id a and to the ission of
2 Make enduring, long-term investments reatin better e p o ent for ore peop e
in human capital: Education, skills and
nother arin ap in the rrent e os ste is that
private sector engagement
trainin has been ar e s pp dri en fforts to
f eneratin ore abo r arket de and is one side proper a i n trainin to the needs of the abo r
of the oin the other is akin ne essar in est ents arket ha e been de ient and effe ti e pri ate
in h an apita ationa p o ent trate se tor en a e ent is a kin oth of these st be
sho d a o t a p an to ake end rin on ter re ti ed if the ski s trainin s ste is to be operati e
in est ents in h an apita thro h ood a it
ed ation fo owed b ski s and on the ob trainin irst arket de and st dri e ski s trainin
a ross pro iders or this there is a need to ap
he inistr of an eso r e e e op ent de and s h that the ethod not on e a ines the
and the inistr of ki s e e op ent and anti ipated rowth of ertain ar e for a se tors
ntreprene rship sho d be er ed to estab ish b t is a so ne t ned to take sto k of the re istered
an effe ti e s hoo to ski s to work ontin and nre istered enterprises of different si es and in
instead of separate ed ation and ski s si os ki s different eo raphies to a i n ob seekers to the wide
trainin espe ia short ter pro ra es annot ran e of obs that do e ist
o pensate for a a k of a it basi ed ation
s s h spendin st of on ed ation is e ond there is a need to refor the e tor ki s o n
inade ate we st a o ate at east to this ost is s to ore effe ti e en a e the pri ate se tor
riti a priorit akin s re that the ost nerab e he pri ate se tor is essentia for on the ob trainin
pop ations ha e e a a ess to a it earnin apprenti eships and internships it is a so riti a for
t e a i portant as ore spendin is refor of nderstandin arket de and and the a i ations
the rrent s ste to in de a on other thin s a needed for different ob ro es t is a a ab e so r e of
reater fo s on ti atin e p o abi it in s hoo infor ation to nderstand how de and pro e tions
a han e in s bse ent ears that is whi h se tors
s s hoo rri a are re iewed the st a so wi need how an workers and when his is parti
onsider n rt rin e p o abi it in a e appropriate ar i portant as te hno o i a han e a ters the wa
wa s o t ski s fro h iene to on dent peop e i e and work at an npre edented pa e
o ni ation st be fostered fro ear a es
s a hi d pro resses thro h se ondar s hoo et the rrent hanne s for en a in with the
e pos re to a ran e of trades s h as the basi s of pri ate se tor the s ha e been inade ate
rowin food to e phone repair basi woodworkin their ef a has been arred b fa tors in din
and bea t and we ness an insti adaptabi it ende i orr ption inabi it to ond t assess ents
awareness and a work ethi his for of ti and erti ations effe ti e and t rf batt es with
ski in oes be ond the rrent i ited ode s other s and stakeho ders he e istin ationa
of o ationa ed ation in se ondar s hoo s hese ki e e op ent o i needs to be pdated and
pra ti es do not ha e to detra t fro a fo s on ne t ned to a on other atters refor the s

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

Reforming Sector Skills Councils

here is a need to ear de ineate the f n tions of the s in din their spe ifi ro e in
assess ents ertifi ation and ti i ation of the a ifi ation a ks and asso iated ationa
pationa tandards ased on the ear and spe ifi f n tions as ribed to the s there
sho d be ide ines that ear state whi h re ator bodies the s answer to he
sho d be re ired to ro tine se f report on their str t re o position and perfor an e
his sho d in de reportin on a o nts in a ti e and transparent anner s sho d
be responsib e for a re en e eneration ode that disasso iates re en e fro assess ent
ertifi ation and ti i ation he sho d reinfor e tho h not i p e ent o p ian e
with e istin abo r and wa e re ations a h sho d present a on rete p an for detai ed
de and appin and e p o er en a e ent hese are a few wa s in whi h the s an be
refor ed to be ore effe ti e

3 Strengthen labour market institutions: ad isor oor i it for the state o ern ents to a i n
Toward a simpler labour code, a national their wa es to s essf wa e re i e is one that
floor minimum wage, universal social is enfor eab e and pro ides o pensation adders
protection and better data it is estab ished thro h so nd ind stria re ations
and o e ti e bar ainin and is periodi a ad sted
Labour regulations are a s b e t of har ed debate to ens re that wa e rowth a i ns with han es in
one that see s perpet a in on si e he prod ti it and pri es his is what we need
disa ree ent o er whether these aws onstit te
ri idities that st ie r and e p o ent rowth Social protection is abo t ore and better workers
notwithstandin ost stakeho ders a ree that the o p e ent to the on oin est for ore
there is a need to si p if the e istin ab rinth of and better obs o this end basi so ia prote tion
ndian abo r re ations ear and onsistent hea th pensions aternit death and disabi it
abo r ode is in itin for b siness and in est ent bene ts sho d be ade a ai ab e to a thro h
ationa p o ent trate sho d fa i itate a o bination of affordab e so ia ins ran e and
the si p i ation and rationa i ation of the nations p b i pro ision of ser i es espe ia hea th are
abo r aws that a ow ni ersa a ess rrent on abo t
of the abo r for e has so ia ins ran e e en workers
Minimum wages that ser e as a oor to ens re that in so e or ani ed se tor enterprises a k so ia
a workers an afford to eet their basi needs is a ins ran e
ne essar part of a s essf wa e re i e abo r
arket re ations ha e to strike a ba an e between ea th are is perhaps the bi est on ern when
ef ien and e it ndias nationa oor e e it o es to b i din a prod ti e workfor e with
ini wa e was instit ted in b t it is non e ono i obi it hat p b i spendin on hea th
bindin hat is it has no stat tor ba kin nder the for a o ntr of o er bi ion that boasts hi h
ini a es t or e sewhere t is ere an e e s of e ono i rowth is bare o er per ent of

8 A Clarion Call for Just Jobs: Addressing the Nation’s Employment Crisis
 Economy

is n ons ionab e Millions are one healthcare the res ts p b i are entra to the s ess of a
e er en awa fro r shin debt and po ert ationa p o ent trate bse ent trate ies
ationa p o ent trate sho d a for wi be stren thened as ore ti e series data be o es
a si p i ation of the wide web of e istin so ia a ai ab e to a rate assess abo r arket trends n
ins ran e s he es and pa e the wa towards data ana sis st be te t red with a itati e resear h
o ern ent s pport for ni ersa hea th are this that an ie d n an es and insi hts whi h are as
is an i perati e for a hea th abo r arket s i portant as those fro broad br sh antitati e data
te hno o i ration and rbani ation pend
traditiona e p o ent ode s in reasin the ationa p o ent trate a so needs po iti a
pre a en e of ontra t and other e ib e ate ories wi and reso r es i en the r en of addressin the
of workers so ia prote tion be o es de inked fro obs risis before the de o raphi window oses the
e p o ent whi h f rther reinfor es the ar ent trate annot be he d hosta e to an arbitrar s a
for p b i pro ision of ni ersa hea th are de it ei in e ond how h a o ern ent spends
the o position of spendin atters hat is spendin
Data and evidence fro the e d st nderpin the on the afore entioned areas is ore ike to ontrib te
ationa p o ent trate he a k of re iab e to rowth and to a wider distrib tion of its bene ts than
estimates on employment in recent years has impeded other for s of e pendit re n addition there is a need
its eas re ent and thereb the o ern ent to reassess e istin ta and s bsid re i es to ens re
faces challenges in adopting appropriate policy that the are pro ressi e and that the arner ore
inter entions wrote the o ern ent s hief ono i reso r es to rea i e the trate s oa s
d isor r ind bra anian in the
ono i r e he r e oes on to a know ed e Suchha vikas wi take work hether sa aried or se f
the an i itations of ndias abo r arket data e p o ed whether on fa i far s or in an fa t rin
in din partia o era e inade ate sa p e si e fa i ities peop e a ross ndias t ra and po iti a
ow fre en on ti e a s do b e o ntin di erse ands ape re on their work to earn a i in to
on ept a differen es and de nitiona iss es f fa i and so ia ob i ations and to satisf the
aspirations that dri e and oti ate the dai o iti s
fforts to ather ore data ore re ar and and po i st take the ne essar eas res to de i er
fre ent with a onsistent ethodo o and akin st obs ndias pro ress depends on it

END NOTES

nn a eport eriodi abo r or e r e ationa tatisti a ffi e o ern ent of ndia

ai ab e at http www ospi o in sites defa t fi es p b i ation reports nn a eport
pdf down oad
abo r for e parti ipation rate is here defined as the tota n ber of e p o ed and ne p o ed persons in the o ntr o t of the
tota pop ation abo e ears of a e
bid
3. bid
4. o and khopadh a hat atters for rban o en s ork eep i e into a in e a e abo r or e arti ipation

Policy Challenges 2019-2024 Centre for Policy Research 9

 nn a eport eriodi abo r or e r e ationa tatisti a ffi e o ern ent of ndia
ai ab e at http www ospi o in sites defa t fi es p b i ation reports nn a eport
pdf down oad
ewan s the ne p o ent risis for rea The Hindu ebr ar https www thehind o opinion op ed is the
ne p o ent risis for rea arti e e e
nn a eport eriodi abo r or e r e ationa tatisti a ffi e o ern ent of ndia
ai ab e at http www ospi o in sites defa t fi es p b i ation reports nn a eport
pdf down oad
nn a eport eriodi abo r or e r e ationa tatisti a ffi e o ern ent of ndia
ai ab e at http www ospi o in sites defa t fi es p b i ation reports nn a eport
pdf down oad
er enta e of workers en a ed in proprietar and partnership a p enterprises a on workers ps ss en a ed in non a ri t re
and se tors
ewan and rakash he o in is o rse on ob a it fro or ati e ra eworks to eas re ent ndi ators he ndian
a pe orkin aper an ar entre for stainab e p o ent i re i ni ersit se a i pre i ni ersit
ed in wp ontent p oads ewan rakash ob a it pdf
ewan ob reation ot how an b t how ood Economic Times ar h https e ono i ti es indiati es o b o s et
o entar ob reation not how an b t how ood
or d op ation rospe ts he e ision op ation i ision epart ent of ono i and o ia ffairs nited ations
sto data a ired ia website
a a et a ddressin ne a it in o th sia or d ank
ise ash tatisti s hoo d ation in ndia ationa nstit te of d ationa annin and d inistration
http dise in own oads b i ations o ents ash tatisti s on hoo d ation pdf
bid nn a tat s of d ation eport ra http i aser entre or do s e ease ateria
aserreport pdf
ewan han and ane a report forth o in
abo r rea eport on th nn a po ent ne p o ent r e o e
ports to obs http do ents wor dbank or rated en pdf pdf
na sis of d eted pendit re on d ation to inistr of an eso r e e e op ent o ern ent of ndia
https hrd o in sites p oad fi es hrd fi es statisti s new pdf
ewan and arkar ro d ation to p o abi it st obs etwork
eport on the orkin of ini a es t for ear abo r rea inistr of abo r and po ent
ehrotra a in the o ndation of a st o iet h tendin o ia ns ran e to is an ono i and ora perati e
resentation o ia ins ran e here refers to pensions aternit death and disabi it benefits
ea th e tor inan in b entre and tates s in ndia to o pi ed b ationa ea th o nts e inistr of
ea th and a i e fare o ern ent of ndia https ohfw o in sites defa t fi es
s pdf
e era o th ast sian nations ha e ar ed o t the fis a spa e to pro ide ni ersa hea th are to their pop ations in re ent ears he
s ste an be a o bination of a ontrib tor and o ern ent s bsidi ed s he e n the onte t of ndia the atter ine itab a s for
o apsin other e istin pro ra es and refor in ta ation po i ies to arner ore re en e to this end
ono i r e https www indiab d et o in es e hapter pdf

0 A Clarion Call for Just Jobs: Addressing the Nation’s Employment Crisis
 Economy

-
India’s Agricultural Markets

he new nationa o ern ent be ins its ter a ainst fo s has entred on the pro ise of introd in
the ba kdrop of an a ri t ra se tor esti ated to be in o e s pport transfers for far ers and the r ra
rowin at st aro nd per ent a poor rabi season poor with a ran e of state and nationa s he es
a ross an re ions of the o ntr and a period ha in been proposed and rapid ro ed o t in the
arked b the o apse of far ate pri es a ross e d hi e these s he es deser e ose attention a
n ero s o odities t is esti ated that far h ore r ent need is to take a o prehensi e
in o es i ht be rowin at the s owest pa e seen and s ste i approa h to a ri t re his st
o er the ast teen ears e en as there is a renewed in de prioritisin the deep ha en e of refor in
po i ision of do b in the in a short span of ti e ndias a ri t ra arkets ot on are a ri t ra
ter a on season of repeated protests b far ers arkets a entra e e ent of the ar er strate to
a rarian distress re ains er h in the spot i ht s pport and i pro e far ers in o es the are at the
er heart of ndian de e op ent and the d na i s
he po i debate was initia do inated b the of rowth distrib tion and e it ri t ra
two on standin de ands of far ers o e ents o odit arkets are the onne ti e tiss e in
hi her aranteed ini pport ri es s the e ono onne tin a ri t ra prod tion
and far oan wai ers ore re ent the po iti a ir ation and ons ption inter inkin i e ihoods
 Economy

and o isti s a ross the a rarian and non a rarian a more contextual and more comprehensive approach
se tors shapin the re ations between ities to arket refor
s a towns and i a es and those between
o a and re iona arkets for o odities and Going back from the Dashboard to the
ar er nationa and oba ir its of apita and Drawing Board
o er e here is therefore e er reason to n its first phase of i p e entation the e
b i d on the e istin o ent know ed e and s he e is reported to ha e networked
e perien e to for e a en ine nationa a enda to andis a ross states f these ess than ha f
refor ndias a ri t ra arkets andis ha e shown e iden e of an e e of
on ine tradin a ti it ie d reports in din the
portant this ti e there is a ni e onte t that
findin s of a hi h e e o ern ent appointed
has opened p for the p rs it of s h refor the
pert o ittee pro ide a sense of the n ero s
a bition to reate a ationa ri t ra arket
ha en es the initiati e is fa in on the ro nd In
ndeed this is an idea that has feat red in
an ases o p ter ter ina s ha e re ained in
po i do ents o er the ast few ears datin
their bo es in others data fro off ine a tions or
ba k to th and th an id ter re iews and
o ern ent pro re ent has been retrospe ti e
task ro ps t s bse ent feat red in the nion
entered into the e porta so e andis ha e
d et in and and was na a n hed
a oided o in hi h o e o odities on ine
b the entra o ern ent in the for of e in
d e to de a s in fa i itatin e han e others on
pri 3
se e on a sin e da of the week or off season
before re ertin to b siness as s a and a ross
istori a the re ation of a ri t ra arkets
the board there ha e been few takers for assa in
in ndia espe ia at the pri ar e e where
and a it spe ifi ation with testin e ip ent
far ers se their prod e has o e nder state
re ainin wide n sed n states where re ated
e is ati e a ts and nder the ana e ent of o a
arkets are not the pri ar hanne for o a
arket o ittees s s h the are hara terised
arketin and trade andi f n tionaries ha e
b ariation and fra entation a ross re ions and
str ed to attra t b ers and se ers into arket
o odities s ste s he o e towards desi nin
ards et a one ettin the to bid on ine here
and fa i itatin a nationa arket for a ri t ra
andis are in fa t d na i h bs for o a trade
o odities is therefore a transfor ati e shift
open a tions or an a tenderin are not a wa s
owe er e en isioned as a pan ndia
ond ted in the first p a e or for a o odities
e e troni tradin porta whi h networks the
in s h ases o in b ers and se ers fro no
e istin andis to reate a nified nationa
a tions to e a tions is not an eas task nd e en
arket for a ri t ra o odities has ed
when a tions are o on pra ti e enfor in
into this a bitio s effort with a sin ar fo s
a system of direct electronic payments for all
on getting select local mandis trading online.4
transa tions is a si nifi ant ha en e for far ers
en so the pro ess of tr in to et e off the
traders and o ission a ents with prior histories of
ro nd has for ed at east to so e e tent a deeper
redit ad an es and ash rotations
en a e ent with e istin ph si a arkets and the
ar in onditions nder whi h the operate his
this is not to sa that e e troni a tions and
has ade it ite apparent that if the ision behind
other pri e dis o er e hanis s on a tradin
a ationa ri t ra arket is to be rea ised
p atfor that enab es both o a and on distan e
we need to start fro the ba k end first or this to
b ers to bid on far ers prod e is an in on ei ab e
happen the entra o ern ent needs to take both
enterprise n the ontrar there is itt e do bt

2 Back-End First: A National Agenda for India’s Agricultural Markets

 Economy

and rowin e iden e that far ers and traders The challenge of reforming agricultural
a ross the o ntr are apab e of inte ratin markets
digital technology and online platforms into
ri t ra arketin refor is the pro erbia
their arketin pra ti es t does howe er for e
hot potato ita isib e and po iti a o ati e
s to ontend with the rea it that a ri t ra
hen it o es to takin on a or re ator and
arkets are at on e hi h spe ifi di erse and
po i refor s to open p and in est in a ri t ra
differentiated in ter s of their str t re and
arkets there are two ke so r es of resistan e that
or anisation a ross a ro e o o i a re ions
are s a raised
and re i es so io e ono i ro ps o odit
s ste s a ro o er ia networks and
irst histori a the o a traders o ission a ents
re ator histories and priorities or instan e
and re iona pro essors who ha e in different re ions
different o odities ti ated in the sa e fie d
and periods ained fro the do inant re ator
fo ow di erse post har est pathwa s of e han e
re i e o ten e er ise onsiderab e o a and re iona
trade and processing. The same commodity also
po iti a power his akes it er dif t for state
t pi a o es a ross different states and e en
o ern ents to initiate and s stain deep and wide
within the sa e state thro h different hanne s
ran in refor s to open p a ri t ra arkets to
and inter ediaries a si nifi ant proportion of
o petition oreo er in an ases these sa e
whi h are not for a re ated hen it o es
arket a tors work a ross inp t and o tp t arkets
to re ation itse f there is no sin e a ri t ra
whi e a so nan in thro h redit both a ri t ra
arketin a t a ross states so e states don t
prod tion and ho seho d ons ption akin
ha e an a t at a and e en a sin e state a t is
the espe ia dif t to dis od e thro h iso ated
differentially implemented (and sometimes left
or pie e ea arket inter entions
ar e ni p e ented a ross distri ts b o ks
and o odities oreo er a reat dea of
he se ond is the po iti a p r hase of the ini
re ator work in a ri t ra arkets doesn t
pport ri e and pro re ent the ost
happen thro h e is ati e a ts b t thro h
p b i pro inent eans of state prote tion of
the iss in of ad ho o ern ent orders and
far ers in arkets t we know that in the ast
e en ore e tensi e thro h infor a b t
a orit of states and o odities a ross the
often hi h or anised ind str asso iations
o ntr where s are not ba ked b pro re ent
and tradin networks n this onte t b i din
operations their de aration has no effe t on the
a ationa ri t ra arket annot be in or
pri es that far ers re ei e for their prod e In the
end with e e troni inte ration it re ires an
two states where the o ern ent has rown o er the
enor o s de ree of fie d based data and ana sis
de ades to be o e irt a the on b er i e wheat
si nifi ant instit tiona infrastr t ra and
and padd in n ab and ar ana it has effe ti e
o isti a in est ent and deep re ator refor
di inished or destro ed arket o petition and
s n hronisation and apa it b i din
rop di ersi ation red in andis ar e to the
ro e of seasona pro re ent entres nd in states
earnin fro the first phase of e
where p b i pro re ent is on partia and
i p e entation there is a need for a reorientation
differentia i p e ented it has tended to dri e
in the approa h states sho d not ha e to p
pri ate trade nder o er enera to the detri ent
into the e ia a software instead the ha e
of those far ers who are a read str t ra
to s bstanti e b into and parti ipate in the
onstrained and nab e to se to state a en ies for a
pro ess of reatin a ationa ri t ra arket
ariet of reasons tenant far ers share roppers and

Policy Challenges 2019-2024 Centre for Policy Research 3

 Economy

far ers in re ions where pro re ent e hanis s o ission ded tions based on a it et and
are weak oreo er p b i pro re ent has o ten timely settlement of payment. his is wh re ator
ended p stren thenin the hand of the o er ia refor to open p the rrent andi s ste to
and po iti a powerf in re iona arkets b o petition fro tip e hanne s and sites of e
ro tin pro re ent thro h inter ediaries e han e in din o a traders pri ate orporations
arhati as o ission a ents in n ab or a ro o operati es prod er o panies and other ph si
pro essors e ri e i ers in est en a a and e e troni spot arkets is so i portant

hese then ha e been the intended and nintended t the sa e ti e the re o a of stat tor restri tions
po iti a onse en es of state a tion or as o ten witho t on o itant p b i in est ents in
state ina tion in re iona a ri t ra arkets enhan in the s ste s re ator apa it and ore
owe er the annot ontin e to ser e as reasons arket and o isti s infrastr t re is n ike to ie d
for resistin arket refor s here is now si ni ant s stained i pro e ents or instan e we ha e seen
e iden e to s est that states need to han e ite ear fro resear h in ihar o er the ast
their approa h to the stat s o and at east so e de ade that a b anket repea of the t eads
e perien e that de onstrates that the an nd to both the pro iferation of s a se f re ated
the wi and the wa s to do so o owin are a few pri ate horti t ra arkets and sta erin
re o ended dire tions for po i and p b i infrastr t ra ho es in a or a ri t ra arkets in
in est ent in a ri t ra arkets with a fo s on the state. e a so ha e e iden e that the presen e
stren thenin the ter s of e han e for far ers and parti ipation of far ers in o petiti e o a
who esa e arkets is ike to in rease the bar ainin
power of far ers e en in bi atera ne otiations
Strengthening primary markets through
with i a e e e traders and in ontra t far in
regulatory reform and public investment
arran e ents at the far ate ina we note
here is now rowin e iden e that when far ers that sin e b er hanne s whether r n b pri ate
are a t a ab e to hoose between tip e arket orporations state pro re ent a en ies re iona
sites and options for the sa e of their prod e the pro essors or far ers or anisations in ariab open
ain fro i pro e ents not on in ter s of pri e and ose operations a ordin to their own strate i
b t a so in other riti a and ose re ated e e ents re ire ents tend to ha e stri t a it standards
of o odit e han e s h as a rate wei hin and therefore hi her re e tion rates and t pi a
red tion in arketin osts for e hi h rates of work with on se e t ate ories or networks of

4 Back-End First: A National Agenda for India’s Agricultural Markets

 Economy

prod ers his is of o rse perfe t nderstandab e deeper en a e ent with e istin e pandin and
and to be e pe ted i en the different o er ia intensif in for s of a ri t ra risk
o i s at p a t it a so stren thens the ase for
ens rin that far ers ha e a ess to tip e
Farmers and markets: changing the terms
arket sites and espe ia to in si e ti b er
of exchange
o a who esa e arkets that operate aro nd the
a ri t ra ear tates therefore need to open p n the ndian onte t where we ha e a ast and
the arketin s ste b re o in the andi hi h differentiated so ia and e ono i ro p
entri it of rrent a ri t ra arketin re ation of far ers po i ies dire ted at stren thenin
while simultaneously in reasin p b i in est ent in the ter s of their parti ipation and e han e
de e opin pri ar a ri t ra arkets and in the in arkets st be in b nderstandin the
state s own re ator apa it str t ra onstraints that different far ers
espe ia the ar e a orit of s a and ar ina
his wi in o e workin s ste i a on the far ers fa e in different o odit arkets
re ator desi n and str t re of a ri t ra arkets hese in de onstraints re ated to the ownership
and then o prehensi e identif in and addressin of and a ess to and ia a wide ran e of ar e
o odit and re ion spe i arket re ire ents ndo ented ten ria and share roppin
both of whi h wi need reater reso r e s pport and arran e ents and the e tent and i pa t of the
instit tiona apa it at different e e s of arket fra entation of p ots at the e e of a sin e
or anisation t perhaps ost i portant serio s ho seho d n re ent ti es the ha en e of
and s stained in est ent in refor in a ri t ra in din and ess far ers in in o e transfer
arkets wi re ire h reater arit on the s he es has ri htf re ei ed renewed attention
re it of the state in arkets where it p a s tip e b t tenant far ers share roppers and s a and
on i tin ro es we be ond the s ope of pri ar ar ina far ers o on e perien e a ran e
a ri t ra arketin e is ation his e tends to a of onstraints in a essin reso r es essentia
who e ran e of o odit trade restri tions on sa e for both a ri t ra prod tion and arketin
sto kin o e ent and e port that o ern ents rther a ross re ions far ers e perien e di erse
ro tine and s a idios n rati a i pose and onstraints and nfa o rab e ter s in arkets
i t in arkets he ndian state wi a so ontin e for redit inp ts water stora e transport and
to p a a ro e in the pro re ent sto kin and ins ran e whi h in t rn a be inter inked with
distrib tion of ertain a or o odities b t these a ri t ra o odit arkets ddressin these
ro es st not disre ard and distort the f n tionin onstraints re ires en a e ent with a h
of a ri t ra arkets re ent e a p e of this ar er set of a ri t ra instit tions o tside b t
was the atte pt to p nish pri ate traders for b in onne ted to o tp t arkets for a ri t re
o odities be ow in aharashtra his kind prod e ina e en edi and ar e far ers
of a tion wi on sh t down not stren then arkets in ndia rare ha e a ess to risk iti ation
for farmers. t the sa e ti e an nationa a enda instr ents to s pport their parti ipation in
for a ri t ra refor s st ne essari in de a o ati e do esti and oba o odit arkets
f ran e of onte t spe i eas res to address a h of these areas needs in est ents to s pport
the tip e str t ra onstraints that ndian ro nded resear h and ana sis a onsideration
far ers fa e in the prod tion and arketin of their of pro isin initiati es po i desi n and h
prod e his re ires a h reater nderstandin reater instit tiona apa it and reso r in for
of the o p e inter inka es between a ri t ra onte t spe i i p e entation
prod tion arketin and ons ption and h

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

ri t ra arkets wi respond to han in

agricultural markets and farmers do esti and oba ons ption pra ti es and
institutions this is riti a to the d na i s of di ersi ation
and s a e t si ni ant p b i in est ent needs
he se ond riti a re ationship between prod tion
to be dire ted towards enab in ndian far ers
and arkets in o es far ers apa ities to respond to
who are a read i en a the onstraints hi h
arkets b han in their prod tion de isions o ten
responsi e and adapti e to ake o p e
referred to broad as the ha en e of di ersi ation
prod tion and arketin de isions as both
ere it is now be ond e ident that we ha e on
i ate han e and oba o odit arkets
been s fferin fro the e o o i a and e ono i
rede ne the nat re fre en and e tent of
onse en es of erea entri it wheat and padd
o ati it for far ers a ross the o ntr his
ri e in a ri t ra po i er the ne t se era ears
a s for a on o erd e re i a of a broken p b i
entra and state o ern ents st hart a o rse to
a ri t ra e tension s ste and the b i din
he p far ers thro h a o p e roppin transition
p of reso r e s pport instit tions and networks
in different re ions his re ires a han e in o r
at a e e s r i a ination of far er prod er
approa h to a ri t ra resear h s bsidies and to
or anisations s st a so o be ond iewin
p b i pro re ent whi h needs to be de e oped
the on as o odit a re ators and e tend
into a ore de tero s and i ited inter ention that
to the roles that they can play in deepening and
does not b nt responses to both arket si na s and
defendin the interests of far ers in o a nationa
to si ns of a ro e o o i a dep etion ro re ent
and oba a ri t ra arkets or this o a
o d potentia be dire ted to pri ari o er
a ri t ra know ed e and de ision akin
ne e ted and nderde e oped re ions and prioritise
apa ities st be s pported and stren thened as
n tritio s o odities espe ia p ses and
far ers wei h in reasin di erse and o p e
i ets a on the ines of re ent initiati es in
infor ation se e t risk iti ation eas res ake
Odisha. tates o d a so onsider de e opin a
a ated trade offs and prepare for fre ent
fra ework for s that in orporates risk and so ia
han es and disr ptions to their s ste s of
e terna ities as proposed in the o ittee
a ri t ra prod tion and arketin o er the
Report on Incentivising Pulse Production. he er
edi and on ter ndian far ers a read
re ent anno n e ent of a set of in enti es b the
dea with a of this da a ter da season a ter
o ern ent of ar ana to shi t far ers awa fro
season the state st now take er serio s its
the ti ation of padd to other rops s h as ai e
ro e in ontin o s stren thenin the ter s of
arhar and so bean is another si n that this is an
their en a e ent in a ri t ra arkets
in reasin r ent priorit

Back-End First: A National Agenda for India’s Agricultural Markets

 Economy

END NOTES

iran an a adh aksha he o ntin ha en e of a two speed ndian e ono Mint ar h

n ri e inister odi anno n ed the oa to do b e far ers in o e b and onstit ted a hi h e e nationa o ittee
on o b in ar ers n o e
3. idhi arwa ar a ain and dha ara anan he on road to transfor ation of a ri t ra arkets in ndia essons fro
arnataka orkin aper o e ber p
4. e website www ena o in
ordin to the o b in ar ers n o e eport o ndia has an esti ated re ated who esa e arkets ards prin ipa and
s b arket operated nder s he esti ate there are a so appro i ated r ra periodi arkets a essed b far ers
https ena o in web andis on ine
The Report of the Expert Committee on Integration of Commodity Spot and Derivative Markets haired b a esh hand a o has a
se tion istin obser ations of the operationa and infrastr t ra iss es fa ed b e pp here ha e a so been n ero s fie d
based reports in the edia of e i p e entation a ross the o ntr
here is an e tensi e iterat re in histor e ono i s and so io o on the inter inkin of arkets for redit and o odit arketin
a ross ndian re ions espe ia the ro e p a ed b arhatiyas or o ission a ents redit ad an es and de a ed sett e ent are a o on
feat re a ross ost a ri t ra arkets
arwa et a report on pro ress in arnataka the state rrent with the ost e tensi e e perien e with transitionin to e a tions
and inter inkin andis he on road to transfor ation of a ri t ra arkets in ndia essons fro arnataka orkin aper
o e ber here are a so reports on ar er rod er r anisations s parti ipatin in f t res arkets thro h the
ee for instan e ekha a rishna rth he o iti a ono of ri t ra arkets nsi hts fro ithin and ross e ions in
o ndation ed India Rural Development Report 2013-2014, rient a k wan so i a shankar and ekha a rishna rth
nderstandin ri t ra o odit arkets ntrod tion to spe ia iss e est edited b the a thors of the e iew of ra ffairs
ono i and o iti a eek o i o e e ber
tate pro re ent takes p a e in on a s a n ber aro nd of o odities for whi h s are anno n ed and there are
wide ariations in the e tent of pro re ent e en for the two ost e tensi e pro red o odities ri e and wheat ee for instan e
ho itro hatter ee and e esh ap r i es in ndian ri t re ndia o i or
khpa in h and hr ti ho a o ission ent ste i nifi an e in onte porar ri t ra ono of n ab Economic and
Political Weekly o o
arbara arriss hite Rural Commercial Capital: Agricultural Markets in West Bengal ford ni ersit ress
ho itro hatter ee arket ower and patia o petition in ra ndia an ar i ip ookher ee et a idd e en ar ins
and as etri infor ation an e peri ent with potato far ers in est en a Review of Economics and Statistics o ss e
e esh ap r and ekha a rishna rth nderstandin andis arket owns and the na i s of ndia s rban and ra
ransfor ations orkin aper
i a ntodia n est ent in ri t ra arketin and arket nfrastr t re ase t d of ihar esear h eport ationa nstit te of
ri t ra arketin aip r khpa in h s he other side of the stor Hindu Business Line ebr ar
dha ara anan nf e tions in ri t ra o tion onte porar o odit o p e es and ransa tiona or s in nterior a i
ad Economic and Political Weekly
i ha ar si e power ent ri e nfor ation and isinter ediation in o bean arkets in a wa ndia Development and
Change o ss e ekha a rishna rth tates of heat he han in na i s of b i ro re ent in adh a
radesh Economic and Political Weekly e iew of ra ffairs o i o e e ber
n the o ern ent of aharashtra tried ns essf to introd e an a end ent akin it i e a for pri ate traders to b
prod e be ow the state de ared s b i posin fines and a ai ter s he o e res ted in the sh tdown o er a or andis in the
state.
he need for better inte ration of spot and f t res arkets has been re ent re isited b a o ittee ed b a esh hand and h
ore work is needed to desi n instr ents that far ers an a ess and ti ise to hed e their risks in a ri t ra arkets
he o ern ent of disha a n hed a i et ission for the pro otion and s pport of i ets in triba areas http www i etsodisha
o and in the state a n hed a i et pro re ent pro ra e fo sed on ra i
r ind bra anian eport on Incentivising Pulses Production through Minimum Support Price and Related Policies epte ber
n a the o ern ent of ar ana anno n ed a set of in enti es on the inp t and o tp t side free seeds ash transfers s to
en o ra e far ers to shift awa fro water intensi e padd ti ation to rops s h as ai e pi eon pea and so bean

Policy Challenges 2019-2024 Centre for Policy Research

 Economy

Of Investment and Jobs

espite showin er hea th head ine rowth there there is rise in interest rates fro to dri en in
are ontin in on erns abo t ndian e ono s part b hi her o ern ent borrowin s it fa s e en
attra ti eness for in est ent and its potentia to pro ide f rther to ass in ow interest e asti it n this
obs he so tions for these f nda enta iss es are not onte t the siness pe tation nde shown
si p e b t an si p isti re o endations abo nd in i re has i pro ed sin e the ows of b t
hi h are the fa se hopes that one st not harbor not b h o p t it b nt b siness senti ent has
been tepid n i re an i pro e ent in senti ent
i e a o e of the in est ent de and r e fro ELow
Interest Rates and Investment
to EHigh e en if interest re ains re ati e hi h at
n prin ip e a fa in orporate in est ent an be wo d in rease in est ent fro to h ore
attrib ted to two fa tors i i an in rease in interest than that a hie ed b a red tion in rates fro
rates and ii han es in e pe tations abo t the f t re to o row in est ent i pro e ent in b siness
as shown in i re red tion in the e pe ted on den e is needed siness wi a wa s ook for
f t re rowth e fro to per ear wo d a ower interest rate sin e it red es their ost b t a
ean that the orporate se tor wo d in est ess ow interest rate a one is n ike to ead to a p in
sin e the e pe t to ater to a ower de and his is pri ate in est ent
i strated b a downward shi t in the de and r e
from EHigh to ELow o e en at a ow interest rate of he riti a po i estion is th s what wi i pro e
the in est ent fa s fro to n addition if b siness on den e

8
Figure 1: Expectations and Investment Figure 2: Trends in Business Expectations

RBI Business Expectations Index

Interest rate 2 per. Mov. Avg. (RBI Business Expectations Index)
125

H
120
117.7
115.8 116.2
115
L
111.1
110

E High 105
E Low
100
Investment

Jun/16

Jun/17
Jun/15
Dec/15

Dec/16

Dec/17
Jun/18
Jun/11

Jun/12

Jun/14
Dec/14

Dec/18
Dec/11

Dec/12
Jun/13
Dec/13
O A B C D

Source: Reserve Bank of India Quarterly Industrial Outlook Survey

owe er the ore iss e in the fa of the in est ent entr sted his on den e in the rrent o ern ent
rate is not that of orporate in est ent b t that of the ho seho d does not see to ha e as opti isti a
ho seho d sa in s and in est ent as seen in i re iew abo t the f t re
and n est ent in ph si a assets ain dwe in s
took a hit in and has et to re o er ost h s as with b siness the po i estion is how to
there has been so e nderstandab e rea o ation i pro e ho seho d e pe tations he rowth of ood
awa fro nan ia assets to ph si a assets b t obs wi ertain he p and i pro ed a ri t ra in o e
the a re ate has ontin ed to be ow o pared be ond in o e s pport s he es are a or areas of
to histori a hi hs of hi e the oter has a tion if the ho seho d is to fee ore on dent

Figure 3: Savings Supply

45%

40% 4.3% 4.8%

1.7% 1.3%
35% 1.0% 1.8%
0.6%
30%
16.3% 15.1% 12.9% 12.5% 9.9%
25% 10.8% 10.6%

20%
7.1% 8.1% 6.3% 6.6%
7.4% 7.4% 7.4%
15%

10%
9.5% 10.0% 10.7% 11.7% 11.9% 11.5% 11.6%
5%

0%
-1.8% -1.6% -1.5% -1.4% -1.2% -0.8% -1.0%
-5%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18@
Public Private Household Financial Household Physical Foreign Government

Source: National Account Statistics, percent of GDP (current prices)

Policy Challenges 2019-2024 Centre for Policy Research 9

 Economy

Figure 4: ross apita or ation

45%

40%

35%

30%
15.9% 14.7%
12.6% 12.1% 9.6%
25% 10.3%
10.5%
20%

15% 13.3% 13.6% 13.5%

12.9% 13.4% 11.6% 12.1%
10%

5% 4.0% 3.8% 3.5% 3.6% 3.9% 3.3% 3.3%

3.5% 3.4% 3.5% 3.5% 3.6% 3.7% 3.9%
0%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18@

Government Public Private Household

Source: National Account Statistics, percent of GDP (current prices)

Which is better for job growth - ti e b t it is i portant for s to re o nise the kind of
Manufacturing or Services? a tion that is needed now as s h han es o r in the
f t re hree iss es on the hara teristi of ser i es
here is h handwrin in abo t ndias the ro e of ed ation and nat re of so ia se rit are
pre at re deind stria isation and the need to re i e i portant to point o t
an fa t rin in order to enerate obs t is o ten
posited as a hoi e between an fa t rin and Services embedded in manufacturing: irst as the
ser i es his is a fa se di hoto or d ono i t ook fro the points o t
an fa t red oods now ha e an in reasin share of
t is i portant to re o nise that in there was a ser i es ross a o ntries s h ser i e inp ts in the
per enta e point ap between ndia and hina with tota prod tion a e of an fa t res rose b abo t
respe t to per enta e of tota e p o ent in ind str per enta e points on a era e between and
n the ap had red ed to per enta e points his o rred d e to both o positiona effe ts as we
n rban areas an fa t rin is a ost a fo rth as han es in an fa t rin pra ti es s h as a ore
of o r workfor e o d o r an fa t rin se tor be dispersed a e hain owe er s h ser i e inp ts
ar er ertain b t that is not the who e stor in an fa t red oods a o nt for on abo t
of o era a e added in the ser i e se tor er the
he nat re of work ore enera in both sa e period the share of ser i es in a re ate a e
an fa t rin and ser i es se tors is nder oin added in reased b per enta e points of this points
si ni ant transfor ation he ad ent of the orresponded to a rise in na e pendit re on ser i es
i e ono and te hno o ies s h as additi e rather than spendin on ser i e as inter ediate
an fa t rin ass sto isation is is ass inp t o whi e an fa t rin is be o in ore
prod tion foreshadows a f t re of work that is ike ser i e intensi e ser i es b itse f is rowin as a na
to be er different fro what is seen toda in both ons ption ood s seen in i re the share of
an fa t rin and ser i es he onse en e of these basi ne essities in tota ons ption is de inin
han es is ike to p a o t o er an e tended period of rapid whi e that of transport is e aneo s ite s

80 Of Investment and Jobs

 Economy

hea th and ed ation is rowin h s as non d rab e of oba a e hains or this attention to re iab e and
ons ption ost basi oods and food share is o petiti e e e tri it s pp and o isti s ef ien
de inin the share of ser i es is risin i re is ke to de i erin oods on s hed e

t this is st the do esti ons ption s enario he broad based ob reation strate wi b i d pon
e phasis on an fa t rin st be asso iated with do esti a oriented ser i es e terna oriented
an e port oriented strate ndias share of the wor d hi h end ser i es wi ontin e to enerate hi h a e
arket is s a eno h for there to be s bstantia b t i ited e p o ent opport nities and e terna
roo for e pansion espe ia if one an be o e part oriented an fa t rin

Figure 5: ons ption asket

100%
12.8% 13.4% 13.7% 14.7% 16.4% 16.8% 17.3%
90%
80%
17.4% 17.2% 16.6% 17.0%
70% 17.7% 17.8% 19.0%
60% 7.4% 7.5% 7.5% 7.9% 8.0% 8.2% 8.7%
50%
40%
30% 59.0% 58.6% 59.1% 57.3% 54.8% 54.1% 51.9%
20%
10%
0%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18@

Roti Kapda Makaan Health and Education Transport & Communication Recreation and Restaurants Not classified

Source: National Account Statistics, percent of GDP (current prices)

Figure 6: rowin hare of er i es

55% 20%
53% 18%
51% 16%
49% 14%
47% 12%
45% 10%
43% 8%
41% 6%
39% 4%
37% 2%
35% 0%
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18@

non-durable goods services durable and semi-durable (RHS)

Source: National Account Statistics, percent of GDP (current prices)

Policy Challenges 2019-2024 Centre for Policy Research 8

 Economy

Lessons for Education: e ond the fast han in hea th ns ran e are o ten pro ided b the e p o er
nat re of te hno o eans that spe i ski s are with the worker ontrib tin a part the who e or none
ike to be ess a ab e be a se the wi be o e of the pre i hese o d ass ptions abo t so ia
obso es ent o er the ifeti e of a worker t is therefore prote tion are now in reasin in a id worker an
i portant that ed ation be seen as h ore han e obs tip e ti es person is o asiona
than trainin for the workp a e be a se the trainin in a for a ob and o asiona se f e p o ed or
that one wi re ei e a i en point in ti e wi ast a in infor a e p o ent n s h a sit ation it is
worker on for re ati e short period d ation has i perati e that the so ia se rit s ste in din
to e o e to a s ste where the ore know ed e that pensions retire ent bene ts and hea th ins ran e be
is transferred is earnin how to earn n addition it is de inked fro e p o ent and ade portab e
a so i portant to re o nise that persons o d need
to a ire new ski s and know ed e tip e ti es
Conclusion
d rin their workin ife s s h it is i portant to
pro ide for an ed ationa and trainin ar hite t re n on sion one riti a takeawa is the i portan e
that wo d per it workers to a ire new know ed e of e pe tations ri e si na s are an i portant
and ski s at a re ati e ow ost as and when the o ponent of this b t there are an other fa tors
needed earnin how to earn and ife on earnin in o ed in how b siness and ho seho ds ook to the
are th s two hara teristi s of the ed ation s ste f t re and both are i portant if ndia is to be on a
that is needed to respond to the workin en iron ent s stainab e hi h rowth path
of the f t re
he se ond takeawa is that we annot afford to
Social Protection: hird the rrent ar hite t re of hoose between an fa t rin and ser i es er i es
ost so ia se rit s ste s oba in din that ha e ser ed s we and ontin e to be a ar er part
of ndia ass es that a worker wi be e p o ed in a of the oba e ono and ons ption basket
sin e ob for e tended periods of ti e rin this en an fa t rin now has s bstantia e bedded
ti e the person is e pe ted to ake ontrib tions ser i es e st re o nise this e en as we pa ore
into the so ia se rit s ste hese f nds in din attention to eneratin ore an fa t rin obs
at hin ontrib tions fro the e p o er are
in ested in a re ated anner and e ent a pon ina as the o rth nd stria e o tion be ins
the worker s retire ent the ret rn on these f nds and to affe t o r e ono ies we wi need to pa ore
pension if an wi eet the worker s e penses d rin attention to the str t re of ed ation and the
retire ent dditiona e e ents of so ia se rit ike ar hite t re of so ia se rit s ste s

END NOTE

f o rse fear abo t the f t re a in rease pre a tionar sa in s b t these are ike to be in ested in ph si a assets

82 Of Investment and Jobs

 Policy Challenges THE WELFARE
2019 – 2024 STATE

ne of the ost si ni ant aspe ts of the ndia stor is its s ow transition into a odern
we fare state he o ntr is e peri entin with new instr ents of we fare s he es ike
ash transfers e en as it it onfronts the o d ha en es of in estin in its h an apita he
p rs it of these instr ents is re ea in deep ontested estions nder in the o era
fra ework fa t offers a ho isti ana sis of ndias o era we fare ar hite t re and
so e of its ke o ponents ike ed ation and in o e s pport s he es to re ea these
ha en es and eans to ta k e the

83
 The
Welfare State

Image Source: Hindustan Times

The Opportunities and Challenges

Confronting India’s Welfare Architecture

er the ast e ears ndia has taken i portant Technology, Income Support, Citizens and
steps towards si ni ant refor in its we fare ar- Bureaucracy
hite t re ran in fro dire t bene t transfers
sh an harat and in o e s pport isan to e hno o has been at the heart of the we fare
the i p e entation of the th inan e o issions refor pro e t o er the ast de ade n when
re o endations owe er nder in these refor s the ationa e o rati ian e rst rode to
are i portant nreso ed and deep ontested es- power it e bra ed adhar and n ar h
tions abo t the ar hite t re of the we fare state n on s he es sed to transfer f nds a
parti ar the estions re o e aro nd entra i ation this had in reased to o er n an ar
and apa ities of ario s e e s of o ern ent to de i - the rst nationa atte pt was ade with the a n h
er he we fare po i nder the new o ern ent wi of isan to se the ar hite t re to introd e
ne essari ha e to onfront these estions and the a basi in o e s pport pro ra e in ndia owe er
opport nities and ha en es the present he abi it e essi e re ian e on te hno o to i p e ent
of the new o ern ent to na i ate this terrain wi has e posed three r ia i itations of the s ste
deter ine its effe ti eness and apabi it to de i er the ast i e prob e a k of a rate data to identif
hi h a it p b i ser i es to ndias poorest the bene iaries and a ienation of the iti enr

84
 he ke rationa e for s a in and o in towards portant tar eted pro ra es ike isan re ire
dire t ash transfers thro h in o e s pport pro- b rea rats to identif e i ib e bene iaries o do this
ra es is its abi it to rb pa ent eaka e and i - riti a data s h as and re ords and o io ono i
pro e ef ien n akin the ase for a ni ersa asi aste ens s s r e s needs to be re ar pdated
no e the ono i r e ar ed that and disp tes between iti en ai s and of ia re ords
b o in reso r es dire t into bene iar a o nts need ne otiation oin this ri ht re ires b rea rats
in o e transfers ha e the potentia of ttin down to dia o e with iti ens oordinate a ross depart-
b rea rati a ers his o d rb dis retion si p if ents and absorb feedba k a ski that ndian b rea -
onitorin and therefore red e orr ption rats si p do not possess o ntries ike ra i and
e i o ha e in ested in ar e adres of so ia workers
owe er re ent st dies show that far fro red in at the o a o ern ent e e to do st this t in the
b rea ra ettin the ar hite t re ri ht a s r sh to b pass b rea rats thro h and transfer
for si ni ant b rea rati inter ention ro openin ash dire t into bank a o nts this r ia in est ent
a o nts to pro otin nan ia itera and fa i itatin has been i nored tren thenin the basi apa it and
bank transa tions o a b rea rats are riti a to apabi it of front ine b rea ra notab in ter s
his is best hi h i hted in a re ent ao o - of its h an reso r es e en if its on task is to o e
issioned pro ess onitorin the se of to a ess one wi re ire e powerin o a o ern ents
the b i istrib tion ste s he e in three nion with ski s and reso r es to be en ine responsi e to
erritories handi arh adra a ar a e i and iti en needs
d herr 3
he st d fo nd that bene iaries
reported non re eipt of pa ent e en tho h of ia owe er responsi e o ern ents re ire a ti e
re ords indi ate a transfer fai re rate of ess than iti en parti ipation i iti ed ef ien risks astin
his ap is not a onse en e of eaka e rather the iti ens as passi e re ipients of o ern ent ar esse
st d attrib ted the ap to a k of bene iar aware- instead of as a ti e ai ants of ri hts his is not
ness know ed e of transfers and ad inistrati e iss es ere ro anti a ti is e hno o b its er nat re
in din pa ents bein ade into bank a o nts reates entra i ed s ste s that are distan ed and
not a essed b bene iaries or pro essin errors bewi derin for ordinar iti ens in wa s not different
fro the fr stratin e er da en o nters we ha e
his prob e of ad inistrati e preparedness is a so a had with a entre a ents i iti ed we fare
hi h i hted in a forth o in or d ank report he s ste s en ine risk osin off spa es for iti ens to
report ar es that re ires sophisti ated nan ia o p ain protest and de and a o ntabi it when
ana e ent and te hni a ski sets that are be ond the ri hts are denied he point here is not to ar e a ainst
rrent bandwidth of the o a s b distri t b rea ra ad inistrati e ef ien rather wish to hi h i ht
n ario s states so e of the ke nan ia ana e ent risks that need to be addressed ba an e needs to be
tasks ha e been o tso r ed to pri ate p a ers and state str k between ef ien ains thro h entra i ed
adres owe er apa it st in ter s of sheer h an ontro and responsi eness thro h de entra i ed
reso r es re ains a prob e oreo er ane dota e i- iti en entri o ernan e trikin this ba an e wi
den e s ests that that has at east in the short r n be a riti a ha en e for the new o ern ent ne
in reased rather than red ed the work oad at the front i portant wa thro h whi h this ha en e an be et
ine ront ine of ers are now responsib e for ta k in is thro h stren thenin the i p e entation of the
iti en ai s and disp tes on persona a thenti ation i ht to nfor ation t parti ar the andator
nan ia address infor ation pa ent sett e ents et re ire ents for proa ti e dis os re of infor ation
b t witho t an i pro e ents in h an reso r e a- to iti ens t for infor ation to be e powerin it
pa it and with ski sets re ainin n han ed his has st be re e ant for iti ens his re ires iti ens
a sed si ni ant non tri ia disr ption at the ast i e to be a ti e en a ed with the o ern ent in the

Policy Challenges 2019-2024 Centre for Policy Research 8

 The
Welfare State

pro ess of eneratin infor ation o e o ern ents ated and pdated based on the data and this is a ob for
notab a asthan ha e be n e peri entin with spe ia i ed tea s of h ndreds in ea h state
wa s of identif in re e ant infor ation thro h
re ar dia o es with i i so iet and b i din fora for Regulation and insurance fraud: n tande ins ran e
akin infor ation a ai ab e to iti ens of ine 5 hese s he es re ire reatin a stron re ator fra ework
e peri ents o ht to be st died and rep i ated for fra d ontro ndias rrent re ator en iron ent
is serio s weak st d has shown that a
ins ran e o b ds an of es in ndia are rrent
Regulation vs. Public Provision
a ant with a ba k o of o p aints aps in the
he a n h of sh an harat in tober rrent re ator fra ework i p that there is no
arked the be innin of a si ni ant ar hite t r- estab ished pro ed re for sett e ent of ai s redress
a transition in ndias we fare s ste fro dire t of ons er beha io r a ainst re e tion of ai s
pro isionin o ern ent r n hospita s and s hoo s or e en pena ties for re e tin ai s in io ation of
towards nan in iti ens thro h in o e s pport e istin re ations his in t rn reates in enti es for
and hea th ins ran e and re atin pri ate pro iders re ar io ation of nor s b ins ran e o panies ot
t this transition poses a riti a ha en e ow does a s rprisin the o p aints rate in ndia is arked
state that str es with ro tine tasks b i d apabi it to hi her than o parab e risdi tions a ross the obe
re ate a se tor as o p e as hea th are he s ess of is now intrinsi a tied not on
to the f n tionin of the hea th depart ent b t a so
f n tionin hea th ins ran e s ste st ens re that the ri ina sti e and o rt s ste s new stron er
patients are not nder treated nor o er treated or o er- e is ati e fra ework for re ation and ins ran e fra d
har ed ns rin this re ires adapti e pri e settin is r ent needed
stri t re ation third part onitorin and a it
i pro e ents in p b i se tor hospita s 6 he on wa to ens re that these onditions for
i p e entation s ess are et is thro h as-
Pricing: ettin pri es ri ht is the entra di e a in si e in est ents in a ski ed workfor e n the the
an ins ran e pro ra e and one that a o ntries ar e sin e p r haser edi are s he e e p o s
str e to so e his is be a se pri es need to f the peop e to o er i ion bene iaries hese
d a f n tion of ens rin neither too h nor too are a hi h trained ad inistrati e staff hand in
itt e t osts for the sa e pro ed re are ike to differ ins ran e a dits pri in and edi a re ords dea in
a ross hospita s be a se of a it o ation and apa - with anti tr st ases and fra d and e a inin bi in
it herefore a sin e pri e an ne er ens re that both iss es in ea h state ndia has nowhere near this s a e
onstraints are effe ti e et and in fa t it is ertain of staff onsider ttar radesh where the s he e a
that these pri es wi ne er be the ri ht pri es ore- o er of the pop ation or i ion peop e hat
o er if the pri e is too ow for a hospita it wi either wo d i p that the ad inistrati e staff to r n a sin e
hoose not to enro in the s he e or it wi den ser i - p r haser s he e sho d be abo e ross
es hen the pri e is too hi h the hospita wi ake ndia ost state ins ran e s he es and the ashtri a
additiona pro ts or worse tr to on in e patients to wasth a i a o ana ha e been r n b tr sts
re ei e ser i es when the are not needed and of es e p o in fewer than staff n the
head arters has on staff he point is si p
he one thin that o ntries i p e entin ar e s a e this r nnin a s he e as o p e as a ar e s a e
ins ran e pro ra es ha e in o on is a ar e hea th ins ran e pro ra e re ires peop e in e the
ana ti a and data entre that ontin o s e a ines e pertise rrent does not e ist at east at this s a e
pro ed res pro ed re odin and har es fro the wi ha e to de e op the ne essar instit tions to
ins ran e s he e ri es ha e to be fre ent ne oti- train these professiona s

8 The Opportunities and Challenges confronting India’s welfare architecture

 The
Welfare State

ina and this is a esson that app ies ore broad the th inan e o ission that so ht to enhan e
to the di e a of p b i s pri ate pro isionin there s a de entra i ation to states b red in entra
is no ettin aro nd the riti a need to stren then o ern ent ontro o er state spendin t one e e
p b i s ste s pe i a in hea th are in the on these han es were on o erd e istori a ndias
r n we f n tionin p b i hospita s wi pro ide a s a federa ar hite t re has been e tre e entra -
h needed ba kstop a ainst predator pra ti es i ed he de e ation of s a powers and responsibi ities
denia of ser i e and o er har in in the pri ate se tor spe i ed in the onstit tion re e ts a entripeta bias
spe ia in distri ts where o petition is i ited p b- with the entre ha in o erwhe in and o erridin
i hospita s wi i it the onopo power of the pri ate e ono i powers o p t it in perspe ti e states in r
se tor sh with the new one fro the s he e of o ern ent e pendit re b t o e t on of
fra ework for transferrin reso r es fro the s he e re en e state borrowin is s b e t to appro a fro
to he p o ern ent hospita s i pro e their a it is the nion
st as i portant as f ndin ows to the pri ate se tor
he annin o ission with its andate of en-
tra i ed p annin e er ed as a riti a instr ent for
The Centralization vs. Decentralization
entra i in ndias s a s ste o i strate a -
Tug of War
ations b the th inan e o ission re ea that
riti a nder in iss e that in en es the d na - between and entra o ern ent spendin
i of we fare pro isionin is that of nan in ndias on state s b e ts in reased fro to and that
we fare s he e ho ars of federa is in ndia ha e on on rrent s b e ts in reased fro to he
hara teri ed ndia as a asi federa or a federa b k of this e pendit re took p a e thro h spe if-
s ste with a entripeta bias n this onte t the nion i p rpose transfers or entra ponsored he es
o ern ent has histori a p a ed an i portant ro e s nan ed and onitored thro h the annin
in nan in we fare re ated s he es the d na i of o issions p an f nds akin s one of the ost
s a federa is and entre state re ations is a riti a i portant ehi es of entra transfers to states o
in redient that in en es the i p e entation of we - i strate d rin the th i e ear an
fare po i s he e spe i transfers a o nted for o er of
entra transfers to states portant these s he es
n the ast e ears ndia has transfor ed its s a as ar ed o prehensi e b ani ap r in this o -
federa ar hite t re de o in npre edented e e s of e were desi ned and i p e ented in an e tre e
independen e and reso r es to its states owe er in entra i ed ti ht ontro ed one si e ts a ar hite -
doin so it has reated a new di e a one of dis- t re that nder ined state e ibi it
parities between state o ern ents in their abi it to
de i er we fare and other ser i es ffe ti e this has tates ha e on o p ained abo t s a entra i ation
eant that in absen e of entra s pport the states with ro as far ba k as the ationa e e op ent
ower apa it to desi n and i p e ent ontin e to fa o n i eetin to ons tations with the th inan e
f rther behind hi h in o e states widenin re iona o ission in state o ern ents ha e ar ed
disparities a ross the o ntr stron a ainst the entra i ed nat re of s and
en roa h ent b the entre on the onstit tiona an-
his is not to sa that the re ent han es in ndias s a date of state o ern ents hief inisters in parti ar
federa ar hite t re sho d be ro ed ba k hese in- ha e resented ha in to seek annin o ission
de the dis ant in of the annin o ission the appro a for state p ans e era o issions noted the
estab ish ent of the a o and the o n i as ne ati e onse en es as arti ated b state o ern-
new instit tions for ne otiatin entre state re ations ents of the pro iferation of s and re o ended
and the i p e entation of the re o endations of red tion in their antit and reater e ibi it in their

Policy Challenges 2019-2024 Centre for Policy Research 8

 The
Welfare State

desi n his deep entra i ation o p ed with the fa t o e states need s with their entra i ed desi n
that the post ibera i ation era had rendered the en- and i p e entation str t re si p be a se the a k
tra i ed p annin pro ess irre e ant ade the need for p annin apabi ities
refor in and e en dis ant in it r ent and riti a
he annin o ission with its p an f nds and
he settin p of the a o and the i p e enta- s p a ed an i portant a beit i perfe t ro e in
tion of the re o endations of the th inan e o - respondin to these o ernan e de its b desi nin
ission to enhan e s a de o tion to states arked and nan in thro h p an f nds s he es inked to
an i portant n t re in s a federa re ations in ndia ore p b i ser i es nd for a its aws it a e states
owe er it a so bro ht to the fore an i portant new thro h the ationa e e op ent o n i a ess
fa t ine in the entra i ation s de entra i ation t of to an instit tiona spa e for debatin and e er isin
war that has shaped the d na i s of s a federa is in so e e era e o er p an f nds oreo er the annin
the o ntr he f t re shape of federa is in ndia wi o ission p a ed a riti a oordination f n tion
depend si ni ant on how the new o ern ent na i- s inked to p an f nds were ad inistered b ine
ates this fa t ine and the instit tiona spa e it reates depart ents b t the o ission p a ed a riti a po i
for re ne otiatin entre state re ations oordination f n tion inkin s he es to state p ans
and deter inin reso r e a ai abi it rther the e
he pri ar ha en e for s a federa is in ndia ear p ans and p an a o ations enab ed states to broad-
o es fro the o ntr s rowin re iona disparities predi t the ant of p an f nds the were ike
or what has been re ent identi ed as ndias de e - to re ei e ens rin so ewhat predi tab e e pendit re
op enta i ba an e o ernan e apabi it is the o er a e ear e ith the disbandin of the
pri ar dri er behind these e pandin disparities o annin o ission this ro e has been taken o er the
i strate a st d that ranked o ernan e perfor an e nan e inistr and ine depart ents s a res t the
de ned as p b i ser i e de i er of a or states ast e ears ha e ar ab witnessed an e en reater
in and hi h i hts the ar e and persistent entra i ation of s he es n fa t re ent ana sis of state
de e op ent distan e a on st states in ter s of per b d ets hi h i hts that in the ast few ears the share
apita in o e and ser i e de i er o t o es n infra- of entra s he es as a per enta e of o era entra
str t re the densit of state hi hwa s in arnataka e pendit re has in reased fro for entra e tor
at k per s k was e ti es that in disha and s respe ti e in to s and
at k per s k in ower a ai abi it in respe ti e
ihar in at k h was three ti es hi her than
k h in b t it was sti on that of arat at he response to the instit tiona a e t behind b
k h n the so ia se tors the itera rate of ihar the dis ant in of the annin o ission annot be
in at was on abo t ha f that of era a at one of si p reintrod in the p annin and b d -
whi e the infant orta it rate of per newborns etin f n tions of the o ission a beit with reater
in disha in was near nine ti es the rate in e ibi it to states his is be a se despite their intent
era a portant and ns rprisin o ernan e s as an instr ent ha e been nab e to effe ti e
b rea rati apa it and de ision akin pro ess- respond to the ha en e of re iona disparit ow in-
es is the riti a in redient for o in the need e on o e and weak o erned re ions are si p nab e
ser i e de i er i pro e ents in ow in o e states ike to ti i e f nds s entra s he es in reased in
ihar and adh a radesh his e poses as the st d the ast two de ades entra spendin in reased in
ar es a riti a tension between hi h in o e states ri her rather than poorer states n and
and ow in o e states i h in o e states ha e the spendin a o nted for of tota e pendit re
apa it to desi n and i p e ent their own s he es in arat and in a asthan his re ersed in
and an better e era e s a de entra i ation ow in- pendin in a asthan dropped to and

88 The Opportunities and Challenges confronting India’s welfare architecture

 The
Welfare State

in reased in arat to his trend is e en ore pro ra es a an in these tensions and reshapin
a te at the distri t e e ased on an ana sis of si ke the ro e of the entre re ires the reation of instit -
s he es the ono i r e hi h i hted that tiona spa es for entre state de iberations his an
ndias poorest distri ts re ei ed bare of the tota be a hie ed thro h a re ita i ed nter state o n i
f nds a o ated to a state tasked spe i a with reatin a de iberati e
spa e for entre state dia o es on we fare po i and
he pri ar fa t ine in ndias s a federa ar hi- ne otiatin the tensions that ha e o e to shape en-
te t re is this s a entra i ation ar ab riti a tre state s a re ations he th inan e o ission
for poorer states has in fa t bene ted ri her states had re o ended the reation of s h a bod he
ddressin this ha en e wi re ire a si ni ant new o ern ent st i p e ent this re o enda-
o erha of e istin nan ia instr ents a ai ab e tion with r en
with the entra o ern ent pe i a it wi need
a aref reba an in of the entra i ation s de en- e fare po i in ndia is poised at a riti a n t re
tra i ation d na i in wa s that pro ide ne essar efor s of ndias we fare ar hite t re o er the ast e
o ernan e s pport to poorer states whi e ens rin ears present new ha en es and fa t ines that need
s a a tono r ia the entre needs to reorient reso tion if ndia is to o e towards reatin a new
its ro e fro bein a i ro ana er of s he es and st ent r we fare ar hite t re ndia doesnt need
pro ra es to p a in a far reater strate i ro e new s he es rather it needs onso idation and ba an -
b i din nationa po i fra eworks and pro idin in between o petin we fare strate ies ettin this
te hni a apa it to states to enab e and e power ri ht wi re ire si ni ant in est ents in state apa i-
the to p an desi n and i p e ent so ia po i t his is the we fare task for the new o ern ent

END NOTES

e era es adhar and bankin penetration to o e one dire t in to benefi iar bank a o nts
2. Universal Basic Income: A Conversation With and Within the Mahatma pp ew e hi o t of ndia inistr of inan e ono i
i ision
ra idharan ieha s kthankar epte ber DIRECT BENEFITS TRANSFER IN FOOD: Results from One Year of Monitoring in
Union Territories ep etrie ed https e onweb sd ed ka ra i papers ther ritin eport pdf
i ar hatta har a rit hett ar h he o tions tate h the di ita needs the h an The Indian Express
etrie ed fro https indiane press o arti e e p ained the so tions state wh the di ita needs the h an
ara anan wa e pri he po iti s of infor ation Indian Express etrie ed fro https indiane press o
arti e opinion o ns the po iti s of infor ation aadhaar nre a
his se tion draws on a oint arti e o a thored with ishn as and effer a er as i ar a er i sh an
harat ork https www prindia or news
atnaik o hah a he rise of o ern ent f nded hea th ins ran e in ndia orkin paper o etrie ed
https www nipfp or in edia edia ibrar pdf
ao in h The political economy of federalism in India. ew e hi ford ni ersit ress
edd edd Indian fiscal federalism ew e hi ndia ford ni ersit ress
e kar owards ndia s ew is a edera is Seminar 717: The Union And The States,717
nd e howdh r ikdar Governance performance of Indian states 2001-02 and 2011-12 o
nd e he ase or adi a ransfor ation Seminar 717: The Union And The States,717
i ar i in he rob e Seminar 717: The Union And The States, 717
o han in is a na i s Seminar 717: The Union And The States, 717
bid
16. Eight Interesting Facts About India pp nd ew e hi o t of ndia inistr of inan e ono i i ision

Policy Challenges 2019-2024 Centre for Policy Research 89

 The
Welfare State

- -

he radhan antri isan a an or food sta ps instead of p b i ed ation or p b i

idhi s he e anno n ed in an ar and distrib tion of food rain s h ash an on be spent
e panded in this o ern ent s rst abinet eetin on spe i ite s of e pendit re he se ond is ii
is the rst a or nion o ern ent in o e s pport onditiona ash transfers where se is nrestri ted
s he e tates notab e an ana and disha ha e b t its re eipt is onditiona on obser ab e a tions
introd ed s h s he es ear ier ow sho d b the ho seho d e sendin hi dren to s hoo
be taken forward ettin the a inated et or hara teristi s of the
indi id a e o d a e pensions he third t pe i e
The move to cash iii an n onditiona transfer of ash is an in o e
e era dire t bene t transfers ash transfers and s pport s he e
in o e s pport s he es ha e been both dis ssed and
i p e ented at the nationa and re iona e e s in the
Objectives of PM-KISAN
ast few ears ire t bene t transfers in o e rep a in n indi id a an re ei e in o e s pport for a ariet
enera ised s bsidies with tra eab e tar eted ash e of reasons o d ha e two ob e ti es i to
the s transfer of a s bsid per inder of to o pensate for inef ient apita arkets e enab e
a desi nated bank a o nt is is the ear ier s bsid ti e p r hase of a ri t ra inp ts witho t hi h
per inder eadin to a ow pri e for a ost borrowin and ii as a s pposed ore ef ient
anti po ert eas re hese are feasib e ob e ti es to
ash transfers an be of three ain t pes he rst is i fo s on n the rst ase the transfer a o nt wo d
rep a e ent for in kind transfers e s hoo o hers depend on a ri t ra e pendit res in o ed ith the

90
se ond the hoi e is between tr in to o press the these and ess ho seho ds are non a ri t ra workers
in o e distrib tion b tar etin ar er s pport to the i in in r ra areas not and ess abo rers
botto of the distrib tion and a ess infor ationa
de andin risin tide i ts a boats desi n whi h o ens re that the and ess are in ded in addition
appears to be s hoi e and possib to the transfer to far ers a so has a s pport
sti ation for the re ati e s a transfer o pared s he e for those en a ed in non far work ts
to state s he es desi n is so ewhat restri ti e b t it in des a
i ited n ber of i e ihood a ti ities for whi h
Quasi-universality – minimal targeting s pport is pro ided
he ad anta e of keepin the in o e s pport ow i e
not er ar e in re ation to r ra in o e in the botto
inti e is that the n ber of bene iaries an be
perationa the se of e sion instead of in sion
ar e and the s he e asi ni ersa t a so red es
riteria is preferab e b t the nder in database
the in enti e of e ded ho seho ds to tr and a e
sed for i p e entation is of a or i portan e he
the s ste and be o e bene iaries s
a it of the database wo d depend on the e tent
a o nt of s per fa i in three insta ents is
of infor ation a ai ab e to the en erators and how
abo t ten per ent of fa i e pendit re for the botto
fre ent it an be pdated both of whi h point
r ra inti e owe er this a o nt espe ia in three
to the o a o ern ent as the preferred o s of
insta ents a be ineffe ti e in easin borrowin
i p e entation a oordinated instead of entra ised
onstraints for far inp ts and sho d th s
data repositor his does r n the risk of o er in sion
be seen as pri ari an anti po ert too
b t if the in o e s pport is not e essi e and the
e sion riteria are ear and desi ned to on
t is instr ti e to o pare with dishas
e de the pper tier of o a e ites this risk sho d
s he e irst ike s transfer
not be er ar e
is in ariant with respe t to andho din whi h
i parts a ertain pro ressi e hara ter to the transfer
he e tent of tar etin is both a atter of desi n and
n ike e an anas th andh e ond if it
of i p e entation what riteria and who hooses
is i p e ented the wa it is in disha it a not
n disha the ist of bene iaries was prepared at the
e de an ho seho ds an a ri t ra abo r
o a e e and was then pr ned at pper b rea rati
ho seho ds who are the ar est ro p of poor ike to
e e s sin a ariet of se ondar databases re atin
be e ded if the s he e on tar eted far ers an
to and ownership and e p o ent o ern ent
sti be bene iaries if e en those with tin a o nts
e p o ees were e ded t ai s it was ab e to
of andho din are in ded as in owe er it is
e de ar e far ers be a se it had pre io s b i t
not ear how the bene iar se e tion whi h is a state
a and re ords database and a food rain pro re ent
f n tion is o rrin and wi o r in
database that re ired and ownership data to
pre ent ro nd trippin sa es n the atter database
he share of and ess ho seho ds those with ess
the in enti e is to show a hi her a o nt of and so
than s are etres of and aries onsiderab
that the ho seho d is ab e to se a hi her a o nt of
a ross states hi e in it was in disha
food rain to the pro re ent a en inkin the
onsiderab ess than the nationa a era e of
two databases reated a ist of ar e andowners who
it was ore than in ttarakhand in ndhra
o d be e ded his shows the i portan e of
radesh ore than in arat and aharashtra
e istin state apa it and prior a tion in s essf
and ore than in arnataka i these
i p e entin new in o e s pport s he es n states
ho seho ds be in ded in he answer
where s h ro ndwork has not been aid
is not ear hat said it is a so possib e that an of

Policy Challenges 2019-2024 Centre for Policy Research 9

 The
Welfare State

o d ha e ata sed the b i din of that apa it and its dire t bene iaries wa e oor an ead to ore
i pro ed on the se of the databases sed for the po iti a s pport for fro abo r b t it an
initia i p e entation of a so ead to deter ined opposition fro e p o ers
espe ia if prod ti it ains e fro ef ien
owe er in the s he e s h databases are wa es do not res t fro an in rease in wa es
now no on er needed sin e the andho din ei in
has been re o ed and there is on an e sion owe er this se f tar etin feat re is not ost ess f
riteria re ated to e p o ent ne hopes that at east the bene iar has to i e p other work to bene t
one o atera bene t of the s he e wi be fro the net bene t to the bene iar
a eri ed database of state o ern ent e p o ees the is red ed n addition there is ateria ost sin e
e ded ate or e p o ent is enerated b b i din an asset ike a
pond or a road whi h needs ateria be ond abo r
pertinent estion to ask wo d be whether the n ret rn one ets an asset b t is it a d rab e a it
trade off red ed ad inistrati e osts and ini a asset ne essar in its onte t
tar etin errors of e sion b e pandin the s he e
to ar er andowners is is an in rease in the hi e pre io s an assets were p b i
a o nt for the ori ina bene iaries is worth it for a assets a ar e a orit of the are now b i t on
pri ari anti po ert s he e indi id a far s of s a or far ers e far
ponds i esto k sheds or ho ses here is th s a
stron in enti e to onitor a it his a so eans
MGNREGS vs. PM-KISAN
that there a be onsiderab e o er ap with the
oes ake whi h despite bene iaries of n that respe t
its initia s epti is has ontin ed to re ei e and are o p e entar in a different
s pport fro o ern ent red ndant ho d the sense in that it a i pro e se of the infrastr t re
b d et be di erted to a or b i t on indi id a far s thro h and
ad anta e of the desi n of is that it is potentia raise o a de and for a ri t ra abo r
we tar eted d e to se f tar etin bene iar is
re ired to perfor re ati e np easant work for he ase for rep a in with is
re ati e itt e one as s h those who ha e other therefore weak
opport nities for e p o ent wi hoose not to seek
bene ts nder t th s tar ets a ri t ra owe er in order to f e era e the
abo r ho seho ds ore than ti ators and is o p e entarit to so e inter inked
o p e entar to tho h a ri t ra steps need to be taken to i pro e
abo r ho seho ds o d a so re ei e in o e s pport i p e entation e a on st these are
fro as e p ained ear ier if far ers with
i ro ho din s are in ded in the ist of bene iaries a) Matching budget provisions to demand: hi e in the
ast e ears the o ern ent si ni ant enhan ed
nother o atera bene t is that the wa e a o ations these were sti not s f ient
an a t as ini wa e s pport for the broader to eet pendin iabi ities i e additiona e pendit re
workfor e or this to be effe ti e workers st be in rred b tates o er and abo e b d etar
reasonab s re of obtainin e p o ent thro h a o ations ordin to data ana sed b entre for
n ndia where a ar e n ber of r ra o i esear hs o ntabi it nitiati e this a o nt
residents are not and owners or and easers b t far rose fro s rore in to s rore
and non far abo r e in bri k ki ns et this wa e ti e e ber
s pport f n tion of an he p an be ond

92 Should PM-KISAN and MGNREGS Co-Exist?

 The
Welfare State

b) Paying Wages on Time: n i portant onse en e reated nder the to o a re e ant needs
of pendin iabi ities is de a ed wa es a on ike to reate better assets than a p an prepared
standin prob e whi h is worsenin e ent han es in ew e hi and state apita s ar st dies on the
in pa ent e hanis s ostensib to red e a it of assets reated nder attest to
orr ption in din inkin pa ents with adhaar this fa t owe er on er en e nder ines this ro e
ha e ser ed to e a erbate this prob e re e he e phasis on on er en e o ht to i e wa to the
he pri ar de a o rs a ter ad inistrati e paper harder task of b i din an ha at apabi it in din
work is o p eted when f nds are to tra e to the tate basi h an reso r es to de e op she es of work
o ern ent a o nt and onward to bene iaries in din assets needed to i pro e infrastr t re
on o a and s a far er ands his be o es
c) Linking wage payments to state minimum wages e en ore sa ient as r ra ho sin and sanitation is
an r ral in lation: nother onse en e is sta nant sat rated and the need for infrastr t re to i pro e
wa es in e wa e hikes ha e been a ri t ra prod ti it re ains
in and in ndian press
oreo er a ordin to s o ntabi it nitiati es erti iser and e tri it bsidies he ase for
ana sis ore than ha f the states in paid an enhan in b reorientin ferti iser and
a era e wa e that was ess than the noti ed wa e rate perhaps e en e e tri it s bsidies is stron er he
e think that the o ern ent sho d re onsider its a o nts in o ed are ar er the s bsidies are
de ision to a ept the re o endations of the a esh re ressi e in that ar er far ers et ore and
in h o ittee de inkin wa es fro en iron enta da a in the o er se of he i a
state ini wa es ferti i er har s the soi and s bsidised e e tri it
eads to o er se of ro ndwater one a ation
aken to ether this weakens the abi it of the e i inatin the ferti iser and power s bsid in n ab
wa e to a t as wa e s pport for the in o d ha e nan ed an ann a transfer
broader workfor e a bene t that oes be ond of abo t to e er ti ator or to
the dire t bene iaries n ess work is a ai ab e on e er a ri t ra worker an be sed
de and and wa es are paid on ti e the wa e oor is to transfor ferti i er and e e tri it s bsidies into
rendered ineffe ti e a si e independent ash transfer whi h wi not
on ake the pro ressi e b t ea e the s a
d) Strengthening the role of Gram Panchayats in asset far er better off than before t wi a so i pro e
creation: ar in its pre io s ter the o ern ent en iron enta s stainabi it b sp rrin rowth of
so ht to ens re that assets reated were d rab e and red ed he i a a ri t re
effe ti e he pri ar approa h was to e phasise
on er en e b inkin assets reated nder dditiona a es he na option is to nan e
to other asset reation pro ra s ro inent a on st b sin re en e fro in reased ta ef ien
these are r ra ho sin and sanitation s he es or hi her rates ne a want to se this sparin
i en the other de ands on the b d et
hi e in prin ip e on er en e is ike to i pro e
o era ef ien in the spe i onte t of
this has ser ed to nder ine the e a andated ro e
Safety Net, Not Springboard
of ra an ha ats he desi n of is a ni e ro idin a safet net is st one f n tion for
opport nit to a ter the i p e entation ar hite t re o ern ent n a rapid rowin and aspirationa
for r ra ser i e de i er b de o in of the f nds o ntr ike o rs we need to a so think abo t
to ra an ha ats riti a ro e en isa ed for the re iab e sprin boards to enab e r ra hi dren and
was to prepare a she f of works inkin assets to be o th a ess the potentia of the odern non

Policy Challenges 2019-2024 Centre for Policy Research 93

 far e ono is a safet net it is not oreo er f parti ipation in the odern e ono
desi ned to be a sprin board his sti re ires ar e is be ond this t needs a fo s on earnin and
in est ents in p b i ed ation and hea th and it is ed ationa attain ent for whi h ear hi dhood
here that the te hno o of ash transfers a pro e hea th and n trition is riti a o e fro free p b i
o nter prod ti e hea th are to s bsidisin broad based tertiar hea th
ins ran e is essentia a se of p b i reso r es for
n o e s pport an o asiona de i er a ar e pri ate de i er en if it is ore ef ient its se for
ban for the b k e b easin ash onstraints ear hi dhood and pri ar are is i ited i i ar
it an ead to ess indebtedness and better pri e s hoo o hers ri ht to ed ation andates on
rea isations b ob iatin the need to enter into b pri ate s hoo s et a tend to abso e the o ern ent
ba k arran e ents at ow pre set pri es t an a so of its ob i ation to pro ide ed ation his is an entire
en o ra e di ersi ation of in o es b enab in ntested strate a ations so far do not indi ate
in est ent in non far a ti ities and in rease that pri ate pro ided ed ation is better at best
ho seho d sa in s b red in essentia e pendit re it a hie es the sa e poor o t o es at ess ost o
e b enab in ho seho ds to b ore fro o ntr has ana ed to ha e a broad based ed ation
when sto ks are a ai ab e t an a so a ow in est ent for their iti ens based on pri ate s hoo s as we appear
in better ed ation for hi dren an of these effe ts to want to do
are seen in s adh a radesh ash transfer
e peri ent dditiona if ferti iser s bsidies are e ond safet nets if we wish to b i d a re iab e
on erted into e i a ent ash transfers the sa in s sprin board for o r hi dren and o th we wi need
fro ow he i a a ri t re as de onstrated in to b i d onsens s on akin reso r es a ai ab e and
ndhra radeshs th adhikara a stha o d on the e hanis s of de i erin hi h a it basi
a ain ead to hi her e e s of ho seho d apita ser i es s h as hea th and ed ation safe water
a ation t these o atera bene ts are not the s pp et ere ash is not a wa s kin
pri ar ob e ti e of ash transfers

END NOTES

ther reasons in de i to a ow hi or her not do work s he finds e essi e disp easin st to keep aintain a basi ini
standard of i in a estion of hoi e and di nit ii to a a apprehensions that peop e annot find work after the ad ent of nd str
a o e fro te porar short ter ne p o ent assistan e to a on ter if not per anent in o e s pport iii redistrib te
in o e ta ation takes transfers i e et t is ear that the s pport is not desi ned to eet ob e ti es i and ii nor sho d
it be e are not at the sta e of de e op ent where this an be an ob e ti e or does iii appear to be an e p i it ob e ti e of this
o ern ent
ee http pib ni in newsite rint e ease asp re id
n ndhra radesh paid near wa es within the stip ated da period owe er this n ber was si nifi ant ower in
a asthan and at and or d ank
st d ond ted b a endran et a in sed ad inistrati e data data to ana se o er i ion transa tions a ross states in
he fo nd that on per ent of the pa ents ade in were ade on ti e n another st d ond ted for
the a thors fo nd that on per ent of the wa e pa ents ade in the first two arters of the finan ia ear had been ade
on ti e
https www thehind b siness ine o opinion bi an wipe off far ers tears arti e e e

94 Should PM-KISAN and MGNREGS Co-Exist?

 The
Welfare State

Image Source: Hindustan Times

Schooling is not Learning

ndias hi dren are s hoo in and not earnin s of st dents in standard in ndia an read a stand-
the re ent re eased ra t ationa d ation o i ard te t e era other st dies in din the o ern-
states ndia now has near ni ersa enro ent ent s own re ent ond ted ationa ssess ent
of hi dren in pri ar s hoo s ender parit has been r e point to ow e e s of earnin
a hie ed and the ost disad anta ed ro ps ha e
a ess to pri ar s hoo s et at the rrent ti e there his risis be ins in the ear ears of s hoo in
is a se ere earnin risis in ndia where hi dren are oreo er earnin pro es are at n other words
enro ed in pri ar s hoo b t are fai in to attain e en if a hi d fa s behind e pe ted earnin e e s in the
basi ski s s h as fo ndationa itera and n era ear ears of s hoo in sittin in assroo s ear
he harsh rea it is this s hoo in is not earnin a ter ear and pro ressin to hi her rades does not
tren thenin ed ation in ndia re ires the new ens re that the hi d at hes p en the si p est
o ern ent to re o ni e the r en of this rea it ski s ike readin a si p e passa e re ains o t of
and the ra it of ndias earnin risis ndia needs to rea h of an a ar in n ber of st dents rawin
ens re in ission ode that e er hi d in rade has on a series of ri oro s st dies of earnin pro es in
a hie ed fo ndationa itera and n era ndia e ono ists ant rit hett and anda eatt
esti ate that fo r o t of e hi dren who o into a
rade not ab e to read wi nish the rade sti nab e
Understanding the Problem
to read en as hi dren str e with basi s the
ndias earnin risis is a wide a know ed ed fa t rri a and asso iated te tbooks are desi ned in the
in e the nn a r e of d ation ra e pe tation that hi dren ha e a ired rade e e
has ser ed as a repeated re inder that bare ski s and an pro ress onwards rit hett and eatt

9
 The
Welfare State

refer to the pheno enon as the ne ati e onse en e infrastr t re rather than earnin p annin
of an o era bitio s rri nan in and de ision akin s ste s are a i ned to
this oa o i strate ann a p ans tar ets and b d -
dditiona se era st dies hi h i ht that there are ets are de inked fro the arti ation of earnin oa s
wide ariations in st dent earnin e e s within a nstead the are based on infrastr t re oa s deter-
assroo n the s r e in the a era e ined thro h ni ed istri t nfor ation on
standard assroo in i a ha radesh hoo d ation a spe i a reated database for
st dents o d read words b t not senten es another riti a ed ation indi ators other than earnin e ent
o d read a standard te t whi e o d efforts to eas re earnin o t o es at the distri t
read a standard te t he res t is a si ni ant e e s h as the are not inte rated into the p an-
di er en e between rates of earnin and rri nin and b d etin e s a res t p ans ha e itt e
e pe tations nother st d b ra idharan and to do with earnin needs and inter entions spe i
in h with a sa p e of st dents spannin rades to i pro in earnin o t o es o and re ati e
in fo r distri ts of a asthan nds that the a era e pa tr one n a it spe i inter entions
rate of earnin pro ress a ross rades is s bstantia a o nted for a ere of the tota o ern ent of
ower abo t ha f than en isa ed in the s ab s and ndia o b d et for e e entar ed ation
rri a s a res t the ast a orit of st dents
str e to ope and in the pro ess earn er itt e 3 hoo in oa s ine itab pri i e e hierar hi a
top down de i er s ste s that seek a o ntabi it
ainst this ba k ro nd the fo sed oa oriented thro h easi eri ab e o isti a tar ets n ber of
p sh for a hie in fo ndationa itera and assroo s b i t statisti s on tea her a i ations
n era in e e entar s hoo s strikes at the heart of et his attit de has per eated down to the
the prob e s the e phasi es the rest of the assroo as to eas re etri s s ab s
o i wi be ar e irre e ant for s h a ar e portion o p etion and pass per enta es ha e he d o r
of o r st dents if this ost basi earnin readin assroo s hosta e he res t has been a deep
writin and arith eti at the fo ndationa e e is entra i ed ed ation s ste in whi h the entra
not rst a hie ed o ern ent deter ines priorities rather than
pri i e in s hoo st dent spe i earnin needs this
ea es the entire ed ation b rea ra b s o e tin
Moving from Policy to Action
infor ation and onitorin tar ets re e ant to ew
he offers an i portant startin point to de e op e hi rather than s hoo s and hi dren
a ission ode oa oriented approa h to i pro in
fo ndationa ski s in ndia t a so offers a fair terin this s hoo in t re is not a si p e atter
detai ed set of powerf po i ideas fro redesi nin of han in s abi and te tbooks introd in new
rri to a nationa t tors pro ra e tea her peda o and i pro in trainin t re ires a
trainin and o nit parti ipation t a hie in o p ete o erha of the or ani ationa str t re
these oa s is not st abo t po i dire tion ather it and asso iated in enti e s ste s in whi h ed ation
is abo t shi tin indsets and han in instit tiona stakeho ders fro b rea rats to tea hers and parents
t re his an on be a hie ed thro h a are e bedded he ed ation ar hite t re needs to
f nda enta o erha of how e e entar ed ation is o e towards a botto p de entra i ed de i er
nan ed and o erned s ste whi h pri i e es the assroo and its spe i
earnin needs his wi ake the i p e entation
he rea it is that in its rrent ar hite t re the ed - of s spe i re o endations a rea it he
ation s ste is desi ned and in enti i ed to ohere transition to a de entra i ed s ste an be a hie ed
aro nd the oa of s hoo in inp ts enro ent a ess thro h the fo owin ke refor s

9 Schooling Is Not Learning

 The
Welfare State

Improving the Financing of Education From an annual to a three-year planning and funding cycle

espite bein on the on rrent ist e e entar n the rrent ann a o ern ent nan ia and ad-
ed ation nan in is disproportionate dependent inistrati e e it takes a ini of si onths
on entra pro ra es his is be a se ost of s a p to o e ber we into the s hoo ear
the states se the b k of their own nan es p for one to o e and new pro ra es to be
to in so e ases towards pa ent of wa es i p e ented his is a res t of on ad inistrati e
and iabi ities o s he es s h as ar a hiksha pro esses inked to ettin p ans and pro e ts ap-
bhi an now rena ed a a ra hiksha are th s pro ed pro rin ateria s and na ens rin f nds
the on so r e of f nds a ai ab e to states for rea h their na destination t dies b s annin
non wa e e pendit re hese s he es pri i e e an o ations and pendit res nstit tions t dies in
e tre e entra i ed one si e ts a s hoo in o ntabi it point o t that the b k of the
fo sed p annin b d etin and de ision akin one s a rea hes s hoo s and distri ts idwa
s ste tates in this ar hite t re ha e itt e roo for and o ten at the end of the ann a nan ia ear on-
orientin spendin to their spe i earnin needs se ent pro ra es ha e a ate start and a so an
ear end to eet ear end nan ia needs his needs
From tied line-item funding to block grants to han e he p annin e needs to o e awa fro
an ann a e to a three ear e with ann a nan-
he rst step towards shi tin to an ed ation
ia appro a s so states distri ts and s hoo s an p an
s ste that prioriti es fo ndationa earnin is to
better and ens re ontin it in i p e entation
o erha the o nan in s ste ne wa is b
p ttin states in the dri er s seat and pro idin
the with e ib e nan in a i ned to the Improving the Assessment System
a hie e ent of ear arti ated earnin oa s
o instit tiona i e a t re of a o ntabi it and ens re
pe i a the o ern ent sho d reate a new
that states ha e a ess to and ti i e re ar re iab e
f ndin window for fo ndationa earnin that i es
data on earnin o t o es a si ni ant effort wi need
states two ntied rants
to be ade to i pro e the a it of data o e tion
on earnin re ated indi ators n i portant start has
he first ntied rant wo d be for states to eet
been ade thro h the restr t red i p e ented
s hoo infrastr t re re ire ents he i ht to
in and the a o s hoo d ation a it
d ation t andates that a states eet
nde owe er there are se era aps he r-
a set of infrastr t re and tea her nor s tates
rent too s are inked to the a hie e ent of rade e e
sho d esti ate their infrastr t re re ire ents
o peten ies t to be sef espe ia at the s hoo
o er a three ear period whi h the entre an f nd
e e what the need to apt re are aps in fo nda-
ann a
tiona itera and n era his wi enab e tea hers
and p anners to assess how far st dents are fro these
he se ond rant sho d be a for a based ntied
basi ski s itho t this riti a data point states are
earnin rant nan ed o er a period of three to e
nab e to deter ine the e e at whi h to orient their
ears ndin thro h this window sho d be based
earnin e e s n s for assess ents to be sef in
on a on ter earnin strate arti ated b state
addressin the earnin risis the need to be a i ned to
o ern ents and inked to ear arti ated ann a
fo ndationa earnin ski s and not rade e e earnin
earnin oa s in e this is an ntied rant the entre
o t o es rther the a it of data o e tion needs
wi no on er need to b s itse f with ne otiatin ine
to i pro e he has re o ended settin p a
ite e pendit re ather it an fo s on pro idin
entra d ation tatisti s i ision his re o enda-
te hni a s pport and idan e to states
tion st be i p e ented r ent

Policy Challenges 2019-2024 Centre for Policy Research 9

 The
Welfare State

Moving beyond States to Districts and desperate need to at h p or this ohort

of st dents there is toda a si ni ant bod of
Schools
e iden e s estin that efforts to at h assroo
n ed ation s ste de entra i ed to states is si p instr tion to st dent earnin e e s rather than the
too ar e to effe ti e respond to the di ersit of traditiona a e rade atri or tea hin at the ri ht
earnin needs in s hoo and assroo s n re o nition e e i p e ented in ission ode an res t in
of this ed ation po i has on paper ade the distri t si ni ant and re ati e speed ains in fo ndationa
the nit of p annin owe er traditiona distri ts earnin e e s an state o ern ents and e en
ha e itt e e ibi it in akin p ans or ontro o er indi id a distri ts toda are be innin to e peri ent
b d et f the ed ation s ste is to en ine oe with i p e entin ersions of tea hin at the ri ht
towards a fo s on assroo s and st dents this has to ee in their s hoo s hese efforts need to
han e st ike states distri ts too o ht to arti ate be s pported and s a ed p with both te hni a
earnin oa s o er a period of three to e ears and and nan ia reso r es o do this a spe i
ha e the e ibi it to de e op p ans to eet these f nd and te hni a partners at the o e e o d
oa s o in enti i e distri ts o and states o d be estab ished for distri ts to draw on to i p e ent
reate a earnin i pro e ent f nd that interested the initiati e his o d be inked to the
distri ts o d o pete for 5 owe er doin this wi a o s spirationa istri t ro ra e to ens re
re ire a assi e apa it b i din effort b the state hi h e e b in and instit tiona on er en e at
and entre to e power distri ts to ake p ans n the o e e fforts to assess fo ndationa earnin
interestin para e is era as eop es an of in e e s sin ike too s are a read nderwa
whi h the state p annin board a n hed a ear on hese need to be s a ed p now
a pai n to work with the an ha ati a s ste
to de e op the rst e er peop es p an he entra
o ern ent o d reate a s a apa it b i din From Assessments to Learning and Doing
f nd for states to de e op a si i ar p an a pai n f ne of the ost da a in onse en es of a
o rse an effort s h as this st not be restri ted entra i ed s hoo in fo sed i p e entation
to distri ts and sho d be e tended to s hoo s and s ste is that it has nder ined the professiona
parent ed s hoo o ittees as we ro es of tea hers and s hoo e e ad inistrators
astin the as passi e r e fo owers o e tin
data and i p e entin orders fro the top t
Teaching at the Right Level
isnt n o on for tea hers in s hoo s to des ribe
ndi s earnin risis has two ha en es he rst is to the se es as ere erks in an ad inistrati e
ens re that st dents enterin the s hoo s ste do not s ste takin the awa fro their pri ar
fa behind in the rst p a e n i portant s estion tea hin responsibi ities his iew is reinfor ed b
in the that st be i p e ented is to inte rate the fa t that the areer adder for tea hers as the
pre s hoo earnin with the for a e e entar s hoo o e to be o in head asters ster and b o k
s ste rther refor s re ated to rri a and tea her e e of ers and na distri t ed ation of ers
re r it ent trainin and perfor an e ana e ent wi is pri ari fo sed on ad inistration rather
ike he p redress prob e s en o ntered within s hoo s than s pportin tea hin earnin e o ni in
this prob e the p shes for red in
owe er the se ond and ar ab reater ha en e ad inistrati e work and i pro in tea her trainin
re ates to st dents a read in s hoo an of who and s pport infrastr t re

98 Schooling Is Not Learning

 The
Welfare State

t these refor s wi on work if the are iden e fro a n ber of e peri ents ost re ent
a o panied b a si ni ant t ra shi t in how in ttar radesh where tea hers are sin obi e apps
ed ation refor s are debated and i p e ented to re iew and tra k pro ress of st dent o t o es on
his shi t st p a e tea hers and front ine of ers a re ar basis 6 shows the wa t s ests that one
at the entre of the atte pt to reshape assroo wa of o in the need e on tea her oti ation
peda o onsider this in the ast three ears and reassertin their pri ar professiona identit as
si ni ant efforts ha e been nderwa to o e tea hers har ed with i partin earnin to st dents
the need e on eas rin earnin o t o es is b e powerin the with data and enab in the
hese in de the and referred to ear ier to se this data in their assroo s his a so ens res
owe er none of these assess ents are eared that a ade i s pport staff ha e the too s to en a e
towards the tea her or front ine ad inistrators in a eanin f dis ssion with tea hers on how
s h as the ster reso r e entre oordinators and to i pro e earnin in s hoo s i din on these
b o k reso r e persons har ed with entorin e peri ents to se te hno o and e power tea hers
and pro idin a ade i s pport to tea hers hese with st dent assess ent data in eanin f wa s an
assess ents th s ere f n tion as too s for o a on wa in i pro in earnin in s hoo s here
onitorin perfor an e rather than as dia nosti is an r ent need to re ast the assess ent of earnin
too s that an stren then the peda o i a s pport o t o es as a dia nosti too that tea hers an and
str t re for tea hers oti ate the and assist the sho d se fro its rrent ro e as a ere onitorin
in i pro in tea hin pra ti es or tea hers and too for the entra and state o ern ents his is
front ine ad inistrators this ere reinfor es the ar ab the ost i portant refor that st be
iew that the are no ore than dise powered o s instit tiona i ed if ndia is to o e towards the oa
in the whee pri ari e pe ted to fo ow orders and of ni ersa a isition of fo ndationa itera and
o p ete ad inistrati e tasks n era ski s in the ne t e ears

END NOTES

ant rit hett and anda eatt he e ati e onse en es of era bitio s rri a in e e opin o ntries orkin aper
enter for oba e e op ent https www de or p b i ation ne ati e onse en es o era bitio s rri a de e opin
o ntries workin paper
http www aser entre or e words p ht arthik ra idharan and bhi eet in h earnin e e s wi not i pro e b spendin
ore on ed ation ind stan i es pri https www hind stanti es o o ns earnin e e s wi not i pro e b
spendin ore on ed ation stor t f i ni ht
ra idharan and in h earnin e e s wi not i pro e
a a ra hiksha o d et riefs o ntabi it nitiati e ew e hi entre for o i esear h https
a o ntabi it india in sites defa t fi es pdf fi es pdf
ee a so k ini aner i pro in hi dren s earnin ha en es and riorities for the ew o ern ent deas for ndia
nternationa rowth entre https www ideasforindia in topi s h an de e op ent i pro in hi drens earnin ha en es
and priorities for the new o ern ent ht
hobhini ker i iet e o tion he ase of ri ar d ation in ttar radesh deas for ndia nternationa rowth entre
https www ideasforindia in topi s h an de e op ent a iet re o tion the ase of pri ar ed ation in ttar pradesh ht

Policy Challenges 2019-2024 Centre for Policy Research 99

 The
Welfare State

Improving School Education Data

n the onte t of the de inin a it of p b i s hoo s o ern ent and pri ate and pro ides report
ed ation o ernan e has e er ed as an i portant ards p to the se ondar sta e for e er state distri t
e p anator ariab e ite distin t fro the ed ation and s hoo t is re arkab e that this data is o pi ed
ariab es ore o on ited s h as tea hin and hoo eport ards prepared and p oaded on
and earnin pra ti es or rri and te tbook the website on an ann a basis d ation data fro
a it n i portant o ponent of the o ernan e ho seho ds is a so bein o e ted b an ha ats and
ar hite t re in an se tor is its infor ation and data o pi ed ann a in i a e d ation e isters few
re i e as a aspe ts of onitorin p annin and states ha e s pp e ented this with data fro hi d
po i akin are dependent on it ook at the data ra kin r e s whi h en erate the pop ation of
s ste in the ed ation se tor in ndia re ea s that there s hoo oin hi dren n addition the inistr of -
is h a iss at a e e s of data o e tion and se an eso r e e e op ent o o issioned
three ro nds of ho seho d s r e s in and
his is not to den that o pared to a o p e of de ades he s r e s as the are a ed o e t
a o onsiderab e ener and in est ent ha e one infor ation on hi dren in the a e ro p ears
into b i din a re ar s hoo based de entra i ed data who are o t of s hoo ther ar e ho seho d data sets
o e tion s ste in ndia his istri t nfor ation ha e e er ed too in addition to the ationa a p e
ste for d ation set p a ter ar a hiksha r e and ens s s h as the ationa o n i
bhi an was a n hed in and now a ed of pp ied ono i esear hs ndian an
ni ed o e ts data fro i ion e e op ent r e and

00
 the nn a tat s of d ation eports sa p in and ethodo o sed b the and et
sin e and now the o io ono i aste ens s arri es at ast different res ts he and o
of the pro ide data on ed ation indi ators s r e s whi h are based on a sa p e then e trapo ate
and s hoo parti ipation in so e for fro their res the proportion of hi dren that are
o t of s hoo as a per enta e of the pop ation of
owe er in the idst of this feast of data so r es hi dren in that a e ro p sin this ethod the
we et aried o ten ontradi tor e iden e on basi st ro nd has pe ed the re at a itt e ess
indi ators s h as the proportion of hi dren o t than of the hi d pop ation a o ntin to near
of s hoo the e tent of i pro e ent in retention i ion hi dren whi e the o
e e s the earnin o t o es and the a it of esti ates p t it at and th s appro i ate
ed ation en in areas of ed ation nan e s h i ion he ens s on the other hand s ests
as tea her appoint ents and sa aries we do not that ore than hi dren in the sa e a e ro p do
ha e an a thenti database en e despite the fa t not o to s hoo th s i in s a wi d differin re
that the o era e and s ope of data o e tion b the of a ost i ion
o ern ent has in reased enor o s with an
ore indi ators added na in estions re ain i i ar the re for the tota n ber of tea hers
abo t the a it ti it and p rpose of the data with in a s hoo t rns o t to be not as si p e a statisti
ob io s i p i ations for p annin and po i akin as it so nds with tea hers bein ro tine sent on
rther with tip e so r es of data both dep tation to other s hoo s 3 h s it is n ear whether
o ern enta and non o ern ent in operation a tea her who is on dep tation fro another s hoo is
data ne tra it a so annot be ass ed to be o nted in her rrent position or in her ori ina
s hoo or does she end p bein o nted in both
his paper hi h i hts the ethodo o i a as we as i i ar infor ation on the e p o ent stat s of
ad inistrati e ano a ies in the s ste and points to tea hers has on two ate ories in the for at
the need for reater de entra i ed ana e ent of data re ar and ontra t whereas tip e ate ories
as we as o aboration a ross a en ies for p rposes of that do not t pre ise into these ate ories a so e ist
standardi in de nitions and ethods of esti ation o ntar assistant et res tin in hi h ina rate
t f rther e phasi es the need for p b i eri ation of data bein o e ted on s h an i portant indi ator
data to ens re a thenti it as we as a idation a ross ther aps in the data o e ted in de infor ation on
so r es to red e bias sa aries paid o t b ea h state to the different ate ories
of tea hers and eas res of earnin o t o es on a
re ar basis he prob e s are o po nded b the fa t
Methodological Discrepancies
that for ats for o e tin data are desi ned entra
e nitions and Met ods of sti ation and do not take into a o nt o a spe i ities nor
he ethodo o i a dif ties be in with the ran e are tea hers o ten the pri ar data en erators
of de nitions and ethods of esti ation sed for ade ate trained to the for ats
i portant indi ators b different o ern ent and alidation and eri cation of ata
non o ern ent a en ies o e tin data or instan e
esti ates for o t of s hoo hi dren a nother aspe t of data redibi it that has pro ed
o e ted thro h ho seho d s r e s are based on to be a weak ink in the data o e tion pro ess is
different estions asked b in esti ators e p o ed eri ation and a idation of data hi e the r es
b ea h so r e he for e a p e asks ow an for di tate that of the sa p e be rando
hi dren are rrent attendin s hoo whi e the ross he ked itse f is nab e to erif that this
ens s en erators ask estions re ated to stat s of pro ess is either re ar or ade ate arried o t
attendan e in an ed ationa instit tion he o d e to a k of apa ities a ai ab e at the front ine for
s r e on the other hand ai s to fo ow both the the pro ess n addition the ed ation depart ents

Policy Challenges 2019-2024 Centre for Policy Research 0

 The
Welfare State

i nore the e iden e presented b other o ern ent e e s owe er it does not te s how the e e s of
or non o ern ent so r es to a idate and th s earnin ar with st dent enro ent or attendan e or
i pro e the redibi it of their data ata a idation an ho seho d fa tor
fa es so e ndane dif ties as we re ated
to different ethods and ti e periods sed for hat is ore s rprisin is that e en the data o e ted
esti atin different indi ators b the a en ies that b o and state ed ation depart ents tho h
o e t data or instan e the i ht to d ation ad itted for the p rpose of onitorin and p annin
t ta ks abo t hi dren between to ears a e ed ation is not eared towards po i oa s nstead
b t pra ti a a data a en ies e ept those nder data o e tion and ana sis are ided b their se
o se different a e ro ps when o pi in in takin sto k of the pro isionin of s hoo s rather
ed ation data akin o parison ite dif t than as a irror of their f n tionin ns rprisin
i i ar the dates and periodi it of data o e tion therefore s hoo s r e s fo s on o e tin infor ation
ar a ross so r es is an ann a s r e re ated to i broad indi ators of infrastr t re and
fo owed a si ear pattern initia b t has now tea her a ai abi it and ii st dent enro ent and
s ipped to ears sin e the ast s r e th s distrib tion of in enti es oth these sets of data
far has aintained a ap of si ears between its two show ase ad inistrati e efforts rather than ed ation
s essi e s r e s hi e and ro h pro ress en the ho seho d s r e o s
o er the sa e period and neither is sed on for esti atin o effort is
orresponds to the ens s dates b t ade to se disa re ated data to nderstand the
does a so fo ows a different ti e period for its prob e s of spe i ro ps of hi dren or s hoo s
ed ation s r e s
se ond on ndr asso iated with the p rpose and
se of ed ation data re ates to the fa t that p annin
Administrative Anomalies and po i akin are e tre e entra i ed pro esses
The Purpose of Generating Data h s data howe er o e ted p a s a i ited ro e
ifferent a en ies p an their data o e tion for in the p annin and po i pro esses or instan e the
different and spe i p rposes and not ne essari ro e t ppro a oard at the o that appro es
for p annin or onitorin ed ation and hen e for
ed ation po i or e a p e the ed ation ro nds
of are part of the s r e on so ia ons ption
whi h in t rn seeks to assess the bene ts deri ed b
ario s se tions of so iet fro p b i e pendit re
in rred b the o ern ent he pop ation ens s
on the other hand is the pri ar so r e of basi
nationa pop ation data re ired for ad inistrati e
p rposes and for different aspe ts of e ono i and
so ia resear h and p annin 5 he non o ern ent
so r es a so ha e ni e p rposes in ind a ain not
ne essari with ed ation as the pri ar ob e ti e
h s is essentia a hea th and n trition s r e
that a so o e ts data on se e t ed ation para eters
i i ar is eared towards the ar er oa s of
h an de e op ent and po ert espe ia the inks
between ed ation ski s and i e ihood n
is so e dedi ated to ed ation spe i a earnin

02 The Numbers Game: Suggestions for Improving School Education Data

 The
Welfare State

ann a p ans and b d ets s for the states n addition the depart enta staff at the state e e
does so on the basis of the nan es a o ated to it b ha e not a ired the nderstandin thro h their
the inistr of inan e and the nor s of e pendit re own a i ations or thro h trainin pro ided b
spe i ed b the entra inistr o hi e the the o ern ent of the re e an e and i portan e of
for a state re e ts the needs of the state e en- a it data or its se in the p annin or po i pro ess
t a a o ations differ wide fro it as the are based or instan e inn erab e for ats are desi ned for
on what is ade a ai ab e b the inistr of inan e onitorin s hoo s b t none of that data is p t to an
thro h pro esses that do not in o e the ed ation se n fa t it is not e en referred to in the onitorin
se tor f o rse state p ans are the se es based on a or re iew eetin s he d at the b o k and the distri t
pro ess of a re ation that does not in o e a en ine nfort nate the personne in o ed in o e tin and
de entra i ed p annin pro ess his is e ident fro the o atin that infor ation are the se es nab e to
fa t that disse ination strate ies are not a i ned with a e its i portan e as the see it as si p a hore of
the oa s of de entra i ed p annin as data is ar e in for ats ith the i port of the data o p ete
na ai ab e in sab e for at the o a or s hoo e e ost on the the are nab e to se it in a onstr ti e
n fa t o a data ana e ent s ste s are irt a fashion akin the entire e er ise red ndant
non e istent p ttin paid to the idea of de entra -
i ed p annin h s whi e it is tr e that s hoo s are
The Way Forward
now asked to prepare their p ans thro h the hoo
ana e ent o ittees in fa t what is s b itted he new dra t ationa d ation o i in re o -
b the are opies of the for at pres ab ni in the pa it and i itations of the ed ation data
as indi ati e of the stat s of s hoo s and th s re e - re i e has a ed for a a or effort in data o e tion
ti e of their needs ent a therefore at the distri t ana sis and or ani ation n parti ar it proposes the
e e and probab a so at the state e e data is estab ish ent of a new entra d ationa tatisti s i-
referred to for deter inin the state ision as an independent and a tono o s entit
at the t has a so s ested the aintenan e of a
Limited State Capacity ationa epositor of d ationa ata within
se ond and perhaps o erar hin prob e onfrontin whi h wi in de spe i indi ators o on
the data re i e in ed ation is that of i ited apa ities to nder represented ro ps s in an atte pt to
to desi n o e t ana se and se data thro ho t the tra k their parti ipation and perfor an e i din a
o ern ent str t res fro the entra to the o a o a data base for drop o t and o t of s hoo hi dren
is r n a ost entire on the sho ders of data entr sin so ia workers to o e t infor ation as opposed to
operators of the ed ation depart ents at the distri t tea hers is another we o e s estion akin tate
and b o k e e s ata that is o e ted fro the ro nd ssess ent r e res ts a ai ab e transparent
p a o nts to a pro ess of si p e a re ation res tin to parents tea hers s e bers and the o -
in the oss of spe i s s h that b the ti e it rea hes the nit o d a so add to o nit parti ipation in the
entra e e it bare re e ts the ro nd rea ities and an earnin o t o es of st dents as we as a idation of
hard ser e the needs of the peop e he a re ation it- the data and a o ntabi it to the peop e
se f is sti done an a at the b o k e e in an states
with di ita i ation appearin on at the distri t e e e iss es that the and re ated a thorities wi
rther i p i it in the o e tion pro ess is a on i t of in- ne erthe ess need to dea with are entioned be ow
terest espe ia with data as it is entire dependent
on for ats ed b tea hers t is we estab ished that (i) pro in de nitions standardi in the a ross
tea hers i ht be in enti i ed to represent infor ation so r es and sin i pro ed ethods of o e tion and
in wa s that in ate fa ts s h as st dent enro ent 6 esti ation of basi indi ators

Policy Challenges 2019-2024 Centre for Policy Research 03

 The
Welfare State

(ii) e e opin apa ities of the data re i e and i in (iv) ed in bias b a idation thro h the se of
a reater ro e to data sers espe ia the ed ation tip e data sets a idation of data a ainst different
of ia s at different e e s of o ern ent ran in so r es espe ia in the ase of data sed for po i
fro the nationa to the o a e essar te hni a an ens re that bias is fa tored in and therefore a ore
ski s if pro ided wi enab e the to be a tio s di io s se of data is effe ted tip e data sets
when o e tin data as a so to interpret and se it ha e other ses as we or instan e whi e an sin e
appropriate s h as when akin p ans data set annot o e t infor ation on a re e ant
iss es data o e tion is known to be a er e pensi e
(iii) ro idin s pport to onitorin a en ies s h as and ti e ons in pro ess h s infor ation
the s hoo ana e ent o ittees s hoo o p e o e ted b on ho seho d e pendit res whi h
ana e ent o ittees so ia a dit ro ps and de onstrates that of a in rban areas
ed ation resear hers to a ow the to p b i a erif are on entrated in the owest inti e whi e in
data that is of ia o e ted his re ires b i din r ra areas the are in the owest two inti es is
a o a data ana e ent s ste at the e e of the re e ant infor ation that an and sho d be sed b
s hoo or an ha at or hoo o p e that has ore the ed ation depart ent witho t ha in to repeat
than o t of s hoo data as proposed b the and is the e er ise i i ar data pro ides inka es
p b i a ai ab e t wo d o a on wa in fa i itatin between ed ation parti ipation and fa i hea th
not st o a onitorin b t a so the de e op ent of a so of i portan e to the ed ation depart ent
s hoo de e op ent p ans n the rrent sit ation the
a k of o p tin fa i ities at the o a e e inhibits (v) akin better se of data thro h proa ti e o ab-
the aintenan e of data as paper re ords tend to oration of different o ern ent and non o ern ent
be poor aintained and not pdated s a res t a en ies or instan e if ho seho d and s hoo data
e en the infor ation that is enerated in the s hoo were a ai ab e in the sa e porta it wo d a i i e
is sent p to the ne t e e for di iti ation at a hi her their se i i ar if the ed ation ro nds were
e e where o p tin fa i ities are a ai ab e at the better oordinated a on with standardi ation of de -
distri t or b o k e e as the ase a be he di iti ed nitions of i portant indi ators it wo d reat he p in
infor ation howe er does not ow ba k to the s hoo ser in the a se of ed ation oa s trea inin the
for the sa e reason s a res t no instit tiona p annin pro ess to enab e p annin based on de en-
e or is b i t p for p rposes of tra kin han e tra i ed data wi o a on wa towards i pro in the
or pro ress in a s hoo dea the for at sho d be se of data at the o a e e as we as ens rin a ore
eri ed b the parents and ar er o nit before en ine de entra i ed p annin pro ess
bein sent p to ens re a ra

END NOTES

ise or nified is a database of a st dents fro rades to

on o ern ent so r es do not o e t infor ation on this ariab e at the nationa e e
t is o on to send a tea her appointed to a parti ar s hoo to another if there is a shorta e in the other s hoo hi e shorta es e ist
in a er ar e n ber of s hoo s s h dep tation t pi a takes p a e if the de and for ore tea hers is raised o d eno h or the
po iti a onfi ration is s h that the s hoo is ab e to draw a tea her towards their s hoo t pi a reatin a shorta e in the s hoo fro
whi h the tea her is dep ted
http ai ospi o in
http ens sindia o in ata rod ts ibrar ndian per epti e ink ens s b e ti es ink ens sob e ti es ht
ee hatt araf and pta t of s hoo hi dren in ndia o e nsi hts into hat e now and hat e on t Economic and Political
Weekly
ee hatt and araf oes o ern ent s onitorin of hoo s ork orkin aper ew e hi entre for o i esear h

04 The Numbers Game: Suggestions for Improving School Education Data

 Policy Challenges
2019 – 2024 FEDERALISM

Center-state relations in India are at a crossroad. In the last few years, India has undertaken
si ni ant refor s ai ed at transfor in the instit tiona and nan ia ands ape for ne otiatin
enter state re ations owe er these refor s hi h i ht i portant tensions ike how best to harness
enter s reso r es te hni a apa it and potentia to ne otiate on i t whi e preser in the
onstit tiona ri hts of the states rowin re iona ine a it and the re ationship of enter and
the state o ern ents with the o a o ernan e e otiatin these tensions re ires rethinkin
the instit tiona ands ape for ana in enter state re ations fa t e a ine these iss es
thro h the ens of so ia po i nan in rban o a o ern ents and the ha en e of inter
state water on i ts n i portant new ontrib tion is to e a ine the potentia for deepenin the
ro e of states spe i a border states in ndian forei n po i

Policy Challenges 2019-2024 Centre for Policy Research 0

 Federalism

Towards ‘Cooperative’ Social Policy

Financing in India

ni e feat re in ndias federa ar hite t re is the were s he e spe i transfers a o ntin for o er
pi ota ro e p a ed b the nion o ern ent in nan - of tota entra transfers to states 2 his in reased
in and onitorin so ia we fare pro ra es and in si ni ant in the th an period f the tota s
ensuring that all states have adequate resources and akh rore transferred b the nion o ern ent to
are he d a o ntab e for eetin so ia po i oa s states between and s akh rore
rin the o ern ent of ndia o spent was released as assistance under CSSs.3
o er s akh rores on so ia ser i es 1 si ni ant
proportion of this e pendit re is et thro h entra he i portan e of s as a s a instr ent ies in
ponsored he es s a spe i p rpose transfer the fa t that the are the pri ar so r e of non wa e
fro the nion to states s a in the for of s he es no itted f nds a ai ab e to states ith a a orit
of states own reso r es tied to wa es pensions and
hi e the pra ti e of sin spe i p rpose transfers other o itted iabi ities so eti es o er
dates to the pre ndependen e era o er ti e s ha e s were desi ned as a top p to a ent state e -
e er ed as the pri ar ehi e thro h whi h the o pendit re a owin the to address infrastr t re and
nan es and dire ts state e pendit re towards nationa h an de e op ent de its
priorities heir do inan e an be seen in their sheer
n bers and the ant of one owin thro h n prin ip e the rationa e for s is so nd and in keep-
the rin the th i e ear an there in with rst prin ip es s a e a isation to ens re

0
that ini standards of p b i ser i es are pro id- s b s he es a o ntin for abo t of the
ed to a iti ens er ti e howe er the desi n and and of the tota o e pendit re hree ears
pro iferation of s ha e nder ined this er ration- ater in the nteri d et for entra e tor
a e i her states with better ad inistrati e apa ities he es onstit ted of o e pendit re p fro
ha e been ab e to apt re a ar er share of f nds in s a o nted for another 8

res tin in a si ni ant isa o ation of reso r es

na sis b the ono i r e of the si top ore i portant there was no rea han e in the
s radhan antri waas o ana ar a desi n or i p e entation of the s he es eetin s for
hiksha bhi an id a ea radhan the p annin of ed ation and hea th pro ra es on-
antri ra adak o ana ahat a andhi tin ed as before and the noti ation to a o ate as
ationa ra p o ent arantee he e - e ib e dis retionar f nds was not re e ted in an
and wa hh harat ission fo nd that of the s he e p annin do ents nstead the dis-
nder no s he e did the poorest distri t re ei e e en band ent of the annin o ission has res ted in
of the tota reso r es n fa t for the and an instit tiona a with respe t to p annin s
the share was nder ther st dies of the now fa nder the do ain of entra inistries eadin
and ationa ea th ission fo nd si i ar to f rther entra isation of so ia po i nan in
res ts that is states with poorer hea th indi ators did
not ne essari et ar er per apita transfers a for rationa isin s howe er has a ain ained
o ent he o re ent o itted to e a atin
oreo er the entra ised nat re of s o ten akes a s before fresh appraisa s are ade and akin
the an inef ient too to address state spe i needs s he e appro a oter ino s with the inan e o -
and has nder ined the a tono of states to nder- ission e ordin the e e op ent onitorin
take e pendit re de isions based on their o a needs and a ation f e nder the a o has
in ited proposa s to e a ate bre a s nder
e o nisin these i itations n ero s atte pts ha e se tors ea han e in so ia se tor nan in howe er
been ade to restr t re s he es and restore the to wi on be isib e if the rrent desi n of s is o -
their ri htf p a e the states he ast a or i pet s p ete o erha ed in addition to the s he e rationa i-
a e with the adoption of the re o endations of sation bein arried o t
the th inan e o ission whi h in reased state
o ern ents share in ta de o tion b per enta e efore offer so e indi ati e steps on how this an
points he res tant de rease in the s a spa e a ai - be a hie ed it is sef to hi h i ht so e of the ain
ab e with the o reiterated the need to si ni ant inef ien ies in the rrent desi n of s road
de rease and restr t re s his ed to the onstit - these an be assi ed into fo r interre ated areas
tion of a o ittee of hief inisters nder the ae is p annin fai res i p e entation fai res s a inef-
of the a o he o ittee ade se era re o - ien ies and ad inistrati e red tape a h of these is
endations in din s he e rationa isation deter i- des ribed be ow
nation of a transparent riterion for interstate a o ation
and reater e ibi it in and reation of an instit tiona
Planning Design Failures
e hanis for entre state ne otiation
d ets for s are deter ined based on in re enta
he han es that fo owed were ini a p ans prepared b the respe ti e state o ern ents
hi e s he es were reordered nder bre a and appro ed b a o ittee at the entra e e his
pro ra es within ea h bre a pro ra e has i en indi id a inistries si ni ant dis retion
s b s he es ontin ed as before s per the nion in deter inin s he e desi n and appro in state
d et e en a ter the reation of bre a spe i p ans and b d ets here is o ten an inherent
pro ra es there were entra e tor and tension between nion o ern ent priorities and

Policy Challenges 2019-2024 Centre for Policy Research 0

 Federalism

states per ei ed needs owe er sin e o ontro s

the p rse strin s entra priorities do inate o
ost s are desi ned as a ost sharin pro ra e
i strate in the ihar hief inister had
between the nion and the states ith the di ision of
a n hed se era state entit e ent s he es for
s into ore ore of the ore and optiona states are
ed ation s h as es nifor s et n its
e pe ted to ontrib te of the tota appro ed
b d et th s the state proposed a ow a o ation for
b d ets fro their own p an f nds 11
entit e ent owe er the o s own prioritisation of
entit e ents eant that despite no de and ihar s
ithin a s he e howe er the at hin ratio is
entit e ent b d et nder was enhan ed b
nifor a ross states irrespe ti e of their s a a-
o er n another e a p e in one state
pabi it e ease of f nds b the o is ontin ent on
o ern ent wanted to se the b d et to pro ide
states re easin their own share and eetin other
ehi es for b o k e e of ia s to i pro e s hoo
onditiona ities s h as the s b ission of ti isation
e e onitorin he appro a board at the entre
erti ates s his has three i portant onse-
howe er denied this re est as p r hase of ehi es
en es with respe t to distrib tion of reso r es irst
was not per itted nder r es
the nifor f nd sharin ratio o ten akes it dif t
for the ow in o e states to p t in their re isite share
Implementation Failures s s bse ent f nd re ease is ontin ent on states
s b ittin their share this has an effe t on the tota
s are t pi a desi ned b the nion o ern ent
ant of one re ei ed parti ar b s a
b t i p e entation rests with the state and o a
weaker states h s whi e arnataka a perfor
o ern ents ost s o e with ri id ide ines
better than ihar on ost de e op ent indi ators it
for e e tion whi h pri i e e a top down one si e
a a so be ab e to a ai the rant b akin its
ts a ode with ed nor s and nit osts or
at hin ontrib tion whi e ihar a nd it dif t
the for instan e the ide ines a down ed
to p t in its share e ond the presen e of onditiona -
pop ation nor s to set p hea th fa i ities hese
ities for f nd re ease eans that there is a onsiderab e
howe er nderesti ate re ire ents in states s h
differen e between the appro ed a o ation and a t a
as a asthan and adh a radesh whi h ha e a
rants n for instan e on of tota
pop ation densit ower than the nationa a era e
appro ed b d ets were re eased hese differen es are
a p i ed at the state e e h s whi e ihar one of
ore i portant e en ran ar i p e entation
the poorest states re ei ed arat and ar ana
detai s s h as hirin pro esses trainin od es and
s a stron er states re ei ed o er 12
his
s hed es o ni ation strate ies et are aid
reates n ertaint in i p e entin s he es and
down b the entre onse ent states and o a
in ariab states with reater shortfa in ser i es e e s
o ern ents ha e er itt e e ibi it in adaptin
s ffer the ost ina the ed f nd sharin ratios
i p e entation based on their spe i risdi tion
a reate per erse in enti es for the states to tr and
he prob e is e en ore a te at the point of ser i e
get additional CSS funds, even if they not need it.
delivery. In education, for instance, if a school wants
to spend ore one on b in tea hin ateria
rather than paintin wa s the nor s si p dont Layered Bureaucracy and Administrative
a ow it i i ar a s r e ond ted b o ntabi it
Red Tape
nitiati e in fo nd that the press re to eet
infrastr t re re ire ents res ted in one for ina detai ed and ri id ide ines o p e paper-
bo ndar wa s bein sent to a s hoo s in i a ha work and n ero s onditiona ities for f nd re ease
radesh e en tho h onstr tion o dnt be nder s ha e a so reated onsiderab e ad inistra-
ndertaken d e to and na ai abi it 10 ti e red tape res tin in inef ien ies in appro a s and

08 Towards ‘Cooperative’ Social Policy Financing in India

 Federalism

f nd ows he sit ation is e a erbated b the fa t that the s he e a ows states to prioritise inter entions and
for so e s the nion o ern ent has set p para e se tors as per their need re i inar ana sis of the
instit tiona str t res responsib e for i p e enta- s he e b d et shows that indeed states are akin
tion in states thereb reatin a new stakeho der in the de isions in keepin with their spe i needs a beit
i p e entation pro ess nder the and for sti ided b the o h s whi e ttar radesh and
instan e s he e p annin and i p e entation rests ihar whi h ontin e to a behind in e e enta-
with a tono o s bodies known as tate p e enta- r ed ation a o ated o er of their a a ra
tion Societies.13 he tip i it of ro es eans that e en hiksha b d et for e e entar ed ation states s h
si p e tasks re ire appro a and te hni a san tions as ar ana and i a ha radesh ha e fo sed on
fro different a thorities st d of the in ttar se ondar ed ation a o atin o er to the sa e
radesh ond ted b o ntabi it nitiati e fo nd i i ar steps sho d be taken in other se tors
that it took a ini of desks thro h whi h the
e had to pass for the re ease of f nds fro the reas r Moving towards Block Grants
to the tate ea th o iet ther st dies ha e a in identi ed priorit areas the ne t step wo d be
fo nd that the res for ihar and aharashtra stood to ensure states have enough resources to fund these
at desks and desks respe ti e ossib as a on- areas nstead of a o ations bein inked to detai ed and
se en e re ease of f nds fro the to the reas r berso e p annin and b d etin pro esses with
took as on as e onths in aharashtra and o er restri ti e entra ised ide ines b o k rants o d
three onths in ihar and ttar radesh Delays at one be i en to states his wo d a ow for prioritisation of
e e ha e a kno k on effe t and o ten f nds rea h the different inp ts and se re reater ownership b state
ast i e in the ast arter of the nan ia ear o ern ents n e a p e of this an a read be seen in
the ashtri a rishi ikas o ana a estab-
Five-step Process in Reforming the CSS Design ished in to re enate fa in a ri t ra rowth
hese ha en es hi h i ht the need to o e awa rates n ike ost other s offers the e ibi it
fro past refor efforts whi h ha e fo sed on inor to a state to hoose a ti ities nder the s he e that
tweaks in s towards the rst prin ip es of the ration- ost s it its re ire ents ro e ts are prepared b
a e behind spe i p rpose transfers his wi re ire a the depart ents on erned and then s r tinised b a
e step pro ess o ittee nder the the state o ern ent s ri t r-
a rod tion o issioner ost i portant pro-
Moving from a Schematic to a Sectoral Approach e t appro a is not done b o b t b the tate e e
an tionin o ittee haired b the hief
he rst step is to i it the n ber of s he es ne
e retar and with representati es fro the inistr of
wa of doin this is to ink nan es to nationa oa s
ri t re and a o as e bers
he o ittee of s on restr t rin s aid o t
nine ke areas as part of the ationa e e op ent
Ensuring Equitable Interstate Distribution
enda for ision t re o ended that instead
of the pre io s o ern ent s strate of b nd in hird interstate distrib tion of the nor ati e b o k
s he es nder bre a pro ra es f nds o d rant portion of f ndin a on st states an be based
be re eased spe i a for priorit areas rather than on a for a that takes into a o nt aspe ts ike pop -
tip e s b s he es his wo d i e states the ation area and proportion of dif t areas a on with
e ibi it to p an a ti ities within ea h priorit area as se tor spe i needs ifferentia ost sharin nor s
per their own de e op ent needs teps in this dire - that take note of the shortfall in service levels could
tion ha e a read been taken he re ent a n hed f rther assist in ens rin that the distrib tion of f nds
a a ra hiksha an o erar hin pro ra e for f s the riteria of need and e a it oreo er the
s hoo ed ation e tendin fro pre s hoo to ass for ai nat re of the rants wi ens re predi tabi it
er ed three pre io s independent s n theor of f nd ows and a ow for better p annin

Policy Challenges 2019-2024 Centre for Policy Research 09

 Federalism

Reforming the Public Finance Management System ug enting apacit of t e aluation f ce

he fo rth step is strea inin inef ien ies in the ina instead of fo sin on onitorin the
appro a and f nd ow pro ess his an be done b n ts and bo ts of i p e entation the o st
b i din a st in ti e pendit re nfor ation et- b i d its apa it to de e op a redib e database
work whi h brin s a e pendit re nits nder one on onitorin o t o e indi ators on a rea ti e
s ste he rst step in this pro ess was ndertaken in basis rrent an inherent weakness in the
when the o andated a e pendit re to be desi n is its fo s on inp ts his reates per erse
ro ted thro h the b i inan e ana e ent ste in enti es for the entire ad inistrati e a hiner
he s ste en isa es ea h i p e entation to fo s on ens rin ade ate inp ts or at best
nit to be nder one s ste thereb a owin o and eetin o tp t tar ets ere the s ro e
states to onitor f nds at different e e s he prob e o d be e panded b in estin in s ste s to
howe er is that the s ste sti f n tions as a p sh enerate re ar redib e and ran ar data
s ste with f nds bein ro ted thro h tip e e e s on ario s o t o e indi ators and to ond t
re irin appro a s at e er sta e o in towards on rrent e a ations of ke pro ra es er
a p s ste ea h i p e entin nit o d ha e the ti e perfor an e on o t o es o d be inked to
abi it to a to ati a withdraw f nds as needed additiona nan ia in enti es a ai ab e to states
de ned reso r e en e ope and appropriate a ess odes
wo d ens re that f nds are not is sed

END NOTES

1. eser e ank of ndia andbook of tatisti s on the ndian ono b i inan e tatisti s ai ab e at https dbie rbi or in
pen o ent pen o ent opendo open o ent fa es o on essf tr e share d
2. hat r edi eport of the o ittee on estr t rin of entra ponsored he es ew e hi annin
o ission o ern ent of ndia
3. a o eport of the b ro p of hief inisters on ationa isation of entra ponsored he es ew e hi a o
ai ab e at http niti o in writereaddata es ina eport of the b ro p s b itter to pdf
i ar and ap r he entra i ation s e entra i ation of ar and the er in arrati e of is a edera is for o ia
o i in ndia Journal of Regional and Federal Studies
inistr of inan e ni ersa asi n o e on ersation ith and ithin the ahat a Economic Survey 2016-17 hapter
ai ab e at https www indiab d et o in es e hapter pdf
ao entra ransfers to tates in ndia ewardin erfor an e hi e ns rin it ew e hi a o
inistr of inan e ono i r e hapter ni ersa asi n o e on ersation ith and ithin the ahat a
ai ab e at https www indiab d et o in es e hapter pdf
8. athin o han in is a na i s Seminar Magazine
i ar et a es ers s esponsi eness owards i din an t o e o ssed pproa h to o ernin e entar d ation
inan es in ndia o ntabi it nitiati e orkin aper ew e hi entre for o i esear h
10. o ntabi it nitiati e istri t eport ards ew e hi entre for o i esear h
11. he entre pro ides for ortheast and i a a an states
12. o ntabi it nitiati e ationa ea th ission d et riefs ew e hi entre for o i esear h
13. n it is known as tate ea th o iet
ho dh r and ohant ti isation nd ows and b i inan ia ana e ent nder the ationa ea th ission
orkin aper eries ew e hi ationa nstit te of b i inan e and o i ai ab e at https www nipfp or
in edia edia ibrar pdf
o ntabi it nitiati e ationa ea th ission d et riefs ew e hi entre for o i esear h
o ntabi it nitiati e nteri d et a a ra hiksha d et riefs ew e hi entre for o i esear h

0 Towards ‘Cooperative’ Social Policy Financing in India

 Federalism

Cities are seen as the key drivers of growth and e hi bai o kata en a r derabad and
ana in rban e pansion is a a or po i hennai had abo t i ion inhabitants in
ha en e t ndian rbani ation is arked not he are fo owed b a series of se ondar etropo itan
st b e pansion b t a so b the transfor ation of a areas state apita s and other bi ities a these
ar e poo of r ra areas o ether these two fa tors i ion p s ities a o nted for a itt e nder a third
ontrib ted abo t of rban pop ation rowth of the rban pop ation in o e are re ent
between the and ens ses with an e a pstarts ike r ra b t ost ha e been aro nd for
ontrib tion o in fro nat ra rowth and the rest so e ti e as edie a or o onia ities
fro i ration ndias rbani ation is th s as ha
stor of its ar e e a ities as it is a stor of the in sit hi e the ar e ities are o on re arded as
transfor ation of its r ra pop ation not st in the rowth en ines rban rowth in the past de ade is
peripher of ities b t a so be ond not on entrated in these b t is a t a ite e en
distrib ted a ross ario s rban ate ories and
o ations ne third of the fastest rowin ities are
Indian Urbanization on the Ground: s a towns of the rban pop ation in i ed
A Rurban Story? in s a towns of ess than and their e ono i
n ndia er ar e ities oe ist with a dense network a ti ities are on ned to the de e op ent of spe ia i ed
of s a towns he si a or rban a o erations clusters involving cities of various sizes as well as villages.
 Federalism

ot a these towns are ad inistrati e rban or ar est etropo itan areas are o ated was on
stat tor towns s b t the are o nted as rban b of the tota non far a e added in the o ntr s
the ens s sin e the are abo e the de o raphi and per the atest eriodi abo r or e r e
e ono i thresho d of bein rban hese sett e ents abo t of the an fa t rin e p o ent in
are known as ens s towns s o ether with ndia is r ra n these r rban areas e ono i a ti ities
s a er s the brid e the ap between ndias ar e are not st non far b t a so a ri t ra with
ities and r ra areas as nodes that s pp essentia ret rns fro far s and re ittan es bein in ested
goods and services to the hinterland. in ser i es ike transport and retai trade en in
ar e ities strin ent and se re ations and rban
hi e the s are ad inistrati e i a es that are densit po i ies an p sh r s be ond the for a it
o nted as rban there are an i a es that do bo ndaries he pa e of an fa t rin e p o ent
not ross the ens s thresho d b t show isib e non rowth was fastest o er in r ra areas
a ri t ra f n tions o ether these new r rban ad a ent to the ar est etropo itan ities
spa es are s ow be o in a ita part of ndias
sett e ent hierar hies and their i portan e is risin in n ndia therefore it a be ore a rate to
ter s of in the spa es between the inter onne ted hara teri e this pheno enon as a r ra rban
it s ste s he pro ide two ain kinds of r ia radation not st in ter s of e ono i indi ators
inka es between r ra and rban spatia and e ono i ike non far a ti ities b t a so in ter s of other
eas res ike b i t p rowth or ni ht i ht intensit
Spatial Periphery: hi e the peripheries of ar e hese p a es are a so not er different fro s a er
ities ike e hi bai or o kata are rowin at a towns in ter s of ons ption e e s or in est ent
faster rate than the ore ities rowth of pop ation in pri ate assets ike septi tanks or otori ed two
and onstr tion is o rrin aro nd s a er ities whee ers eat assif in s h sett e ents as rban
as we and a ross different eo raphi a o ations or r ra biases o r nderstandin of ndias str t ra
or e a p e a app ra whi h sed to be a s a transfor ation and its asso iated we fare o t o es
ni ipa it of peop e in northern era a
d rin ens s rew to an rban a o eration of
Dichotomous Governance
i ion peop e b his rowth a e fro s
ad inistered b pan ha ats aro nd the it whi h et o r ad inistrati e str t re a iant atte pts to
onstit ted of the pop ation of the a app ra o ern ndias sett e ents a ross ear ad inistrati e
rban a o eration in bo ndaries of r ra and rban he onstit tiona
fra ework of r ra and rban o ernan e introd ed
Spatial Corridor: rban areas are a so e er in b the rd and th onstit tiona end ents
a on ind stria orridors o binin ities of different ra pan ha ats in the ase of i a es and
si es and i a es between two distin t it sters ni ipa ities in the ase of rban areas re e ts this
to reate an e tended rban re ion or e a p e di hoto his is histori a e ident at both state
an s h sett e ents onne ted to te ti es and i ht o a and nion o ern ent e e s n the s are
an fa t rin stret h a on fro en a r to ad inistrati e rban areas and are o erned b an
a e in so thern ndia h spa es b r the inter e e ted rban o a bod onstit ted b rti e
rban bo ndaries whi e fa i itatin inte ration of the of the onstit tion whi h aries a ross
r ra with the rban different si es and s a es the in de ni ipa
orporations ni ipa ities or ni ipa o n i s
Economic Aspects: ono i a non a ri t ra and na ar pan ha ats or transitiona rban areas he
a ti ities are spatia diff sed h of it o tside the riteria to desi nate or de assif a p a e as a and
ar er ities n the share of the distri ts where the ate ori e the a ross different s a es are a prero ati e

2 Bridging the Local: Beyond the 73rd and 74th Amendments

 Federalism

of the state o ern ents hese riteria ar a ross The Dissonances

states fro pop ation t offs to workfor e hara ter
Gap in services: ifferen es in o ernan e a ross
re en e eneration apa it et hat is re o ni ed as
the for a rban s and r rban sett e ents is
a in one state a not be so in another
responsib e for the ap in p b i ser i es ike piped
sewera e or in ho se water onne tions a ross the
s and i a es whi h onstit te the r ra rban
despite a pri ate de and for these ser i es tho h
radation are not desi nated as ad inistrati e
these r rban spa es that is the s and ar e i a es
rban b the state and ontin e to be o erned b the
are er different in e ono i str t re b i t p area
appropriate ra pan ha at owe er so ioe ono i
and ser i es fro other r ra sett e ents the are
han es in these rapid transfor in spa es ake
not apa itated to eet their han in re ire ents
the appear ite si i ar to for a rban areas in
of ser i es s h as draina e septa e ana e ent or
ter s of e ono i a ti ities h an apita and the
street i htin his is be a se a of the are o erned
nat re of ser i es re ired b the iti ens
b the sa e r ra o ernan e str t re en within the
rban peripher p b i ser i e pro isions ike piped
his ad inistrati e assi ation a so res ts in
sewer fa s off sharp on e the for a ad inistrati e
differen es in f n tiona do ains and nan ia
bo ndar of the ore it is rossed n ost ities it is
in enti es of the r rban areas and s a er s he
ower in a sett e ents aro nd the ore it and drops
th hed e of the onstit tion p a es i portant
arked with in reasin distan e fro the ore it
functions like agriculture, irrigation and housing under
the a bit of pan ha ats whi e the th hed e
ne onse en e of
p a es rban p annin and se water s pp roads
this denied rbani ation is that iti ens resist state
brid es hea th sanitation and s i pro e ent
o ern ent proposa s to re assif their areas as s
nder the p r iew of ni ipa ities t the states are
While there is regional variation, several services,
not ob i ed to transfer these f n tions to o a bodies
espe ia sanitation are indi id a i ed d e to poor
and there is ariation a ross states as to the e tent of
pro ision of sewera e network piped water fa i ities
transfer hese f n tiona distin t str t res for r ra
et owe er rti e of the onstit tion per its
and rban ean that a pan ha at a not be ab e to
the s to o e t ta es and d ties as a thori ed b
p rs e po i ies that respond to the han es happenin
the state e is at re en e the absen e of propert
in its risdi tion
ta es and hi her s bsidies in r ra areas an dri e
stron o a interest to retain the r ra rban binaries
t the nion o ern ent e e where the fo s is ore
as peop e are o ten re tant to pa e tra for the
on nan ia in enti es and rants for de e op ent
ser i es that the ha e a read se f pro ided he
there is histori a a sharp differentiation between
inade ate pro ision of p b i ser i es in s a er
r ra and rban where nion s he es ha e i en
towns adds stren th to this preferen e
preferen e to r ra o er rban in entra sponsored
s he es s or instan e the esti ated a o ation
Resistance to integration: on o itant in ar e
for wa hh harat ission ra een is s
etropo itan areas where p b i ser i es a be
rore whi h is abo t se en ti es the s pport
the responsibi it of parastata a en ies s h as
for the rban o nterpart s a res t an
etro water boards peop e prefer to be in s a er
states prefer r rbani in p a es ike s to re ain r ra
ni ipa ities rather than be o e part of an e panded
rather than assif in the as rban to bene t fro
ore it or e a p e new ni ipa ities were
the ar er b d et for r ra de e op ent ndeed in
reated aro nd derabad in st to re ate
a i ad swit hed the assi ation of o er
and de e op ent in the it s peripheries n the
rban areas to r ra to obtain ore f nds fro the
o rse of this pro ess the e e ted representati es of
entra o ern ent

Policy Challenges 2019-2024 Centre for Policy Research 3

 Federalism

the erstwhi e ra pan ha ats ne otiated with the Policy Recommendations

o ern ent to ake the areas separate s instead
he on s of pre ai in o er these r ra rban binaries
of er in with derabad as the feared ta es a
in the o ernan e fra ework and inte ratin a ariet
be hi her in the atter ase
of inter inked r ra rban f n tions is on both the
nion and federa e e s of o ern ent
Employment: hese ne a ser i e pro isions
a ross the r ra rban spe tr affe t the e ono i
State: t the state e e the effort sho d be to ake
transfor ation of r rban areas hi e so e spe i
the f n tiona do ain e ib e in ase of r rban spa es
abo r intensi e an fa t rin ind stries are
en within the pre ai in fra ework of the th and
o in o t of the ni ipa bo ndar rowth
th s hed es it is possib e to ake s h pro isions
restri tions pre ent si ni ant e p o ent rowth
or e a p e the th hed e does not ake an
in s h distri ts n so e of these distri ts there are
distin tion between the ate ories of rban areas ike
on entrated sters of we de e oped ho seho d
ni ipa orporations ni ipa o n i s and na ar
ind stries s h as the arpet and hand oo sters
pan ha ats in de o in rban ana e ent f n tions
of ttar radesh or bidi sters of est en a hese
he an a e of the t does not restri t the states
if inte rated with the wider e ono i eo raph an
fro de o in f n tions fro the th hed e to
enhan e the rowth a hine and pro ide s bstantia
s or fro the th hed e to pan ha ats sin
o a e p o ent
this e ibi it states an transfer ertain f n tions
s h as per ittin b i din i enses s b di isionin
Transport: his is another iss e that fa s between
and read stin and for ariab e ses or re atin
two stoo s he o e ent of abo r and the spatia
per its and a o t ro tes for transport odes s h as
distrib tion of obs in rban peripheries are inked
e ri kshaws to the r rban areas
to the a ai abi it of ti oda and inter ediate
p b i transport ike three whee ers b t there is
he si e insensiti e hara ter of the rban o ernan e
no ear f n tiona do ain in the r ra o ernan e
fra ework an a so be sed to f n tiona e power
fra ework to re ate this s a res t despite ha in
s a er s or pan ha ats to pro ide rban ser i es
a ow ost of operation these odes are p shed to
so that iti ens in s and other r rban spa es et the
the frin es rather than be o in an inte ra part of
desired e e s of ser i es and in r an ob i ation to
the p b i transit s ste akin it harder for abo r
pa where appropriate owe er these de o tions
to a ess e p o ent
sho d be ade keepin o a apa ities and po iti a
en iron ents in ind
er ti e these i itations an ha e reper ssions
on the f t re rowth of s and bi er i a es where
ore oordination in and se and ke infrastr t re
ar e se tions of the workfor e are on pre ario s
a ross the r ra rban radation is ne essar espe ia
en a ed in non far obs as s a entreprene rs
in transport water treat ent p ants so id waste
or as a workers en where ne essar fa tors
ana e ent et s ost r rban de e op ent
to pro ide a ore so id non far transfor ation
espe ia in the peripher and a on orridors s a
are present the pre ai in f n tiona and s a
fo ows the tr nk ro tes of transport infrastr t re
do ains an pro e to be a bott ene k for s h rowth
rban p annin needs to o r si taneo s with
er o in these di hoto ies o d res t in
the e pansion of transport networks he se of spatia
si ni ant e p o ent rowth
data o er ti e an he p with this

4 Bridging the Local -- Beyond the 73rd and 74th Amendment

 Federalism

here is a so a ro e for e hanis s so e def n t in isasso iatin s he es fro their o ation is

an states ike the istri t annin o ittee hobb ed b the e isten e of separate inistries for
and etropo itan annin o ittee r ra and rban de e op ent b t s he es ike
to instit tiona oordinate between r ra and that do not o e nder these inistries an hoose
rban o a o ern ents hese or si i ar str t res to f n tion o tside of this binar or e a p e the
an a so enab e states to b end f ndin fro ario s entra s he e for workin wo ens hoste s has
so r es to address the needs of r rban spa es trans ended this binar sin e its in eption in
it has been aterin to rban r ra and e en se i
nion t the nion e e there is an r ent need rban areas where e p o ent opport nities e ist
to break o t of the hard oded de nition of r ra for wo en nder the bre a of the inistr of
and rban here is wisdo in bein a tio s abo t o en and hi d e e op ent
abso te on ersions of s into s i en the
ariet of ir stan es nder whi h s are for ed nother approa h is to a o ate f nds fro different
states wo d need to dep o a ase spe i approa h s he es to the ap in ke infrastr t re and
to e era e their rban hara teristi s brid e the ser i e a between r ra and rban
he h a a rasad kher i rban ission
esi ns for entra s he es st not i pose is a step in this dire tion b t its o ation
restri tions b t po o of o ation be a se ser i es within the inistr of ra e e op ent i its its
in r rban areas need a t for p rpose approa h or abi it to aid rban spa es
e a pe fo ses on onstr tin twin pit
atrines on a priorit basis in r ra areas b t an
Conclusion
r rban spa es where the se of septi tanks was
a read hi h at the start of the s he e wo d ith ities and their asso iated e ono i en ines
ha e been ser ed better b ef ient septa e and be innin to be iewed as onne ted to their
fae a waste treat ent ana e ent herefore peripheries and as part of a wider it s ste
hard odin of entra s he e inter entions b thro ho t o th and o th ast sia rather than
spe if in te hno o ies for rban and r ra spa es in iso ation this is a ood o ent for the new
sho d be a oided o ern ent to introd e an inte rated approa h to
rbani ation brid in the arti ia di ides of the th
t the i p e entation e e states st ha e the and th s hed es t is ti e to b i d e hanis s
e ibi it to e o e od s i enda to address r rban that an fa i itate inter inisteria inter inka es t
needs or e a p e i en how obi e abo r is i ht e en be pr dent to i a ine a sin e inistr of
states sho d be ab e to se f nds fro the ationa local governance in the long run. For now, a category-
rban i e ihoods ission in a ariet a nosti approa h to entra o ern ent s he es
of o ations in din peripheries and orridors and an ar hite t re that a ows states to respond
i i ar a tho h the affordab e ho sin s he e e ib wo d enab e ndia to e era e the atent
radhan antri was o ana a oids so e of opport nit in r rban spa es
the pitfa s of hard odin b s pportin state and
re ion entri ariations in ateria s and te hno o
rban rather than ra a be
ore s ited for periphera i a es

Policy Challenges 2019-2024 Centre for Policy Research

 Federalism

REFERENCES
entre for o i esear h nte ratin inter ediate p b i transport within transport re ation in a e a it
o kata ase st d orkin aper
hatter ee e o ra and e ono i transfor ation in ndia n nderstandin ndias ew o iti a
ono pp o t ed e
hatter ee r ai a a po ent t o es a on the ra rban radation ono i and
o iti a eek
enis khopadh a rah ba tern rbanisation in ndia ono i and po iti a week

es et hani onne ossi ansber he spatia de e op ent of ndia o rna of e iona

ien e
oshi radhan f iatin rbanisation orkin aper entre for o i esear h
ehta arpo o o i its of po i and p annin in peri rban waters apes the ase of ha iabad
e hi ndia abitat nternationa
khopadh a oes d inistrati e tat s atter for a owns in ndia n ba tern rbanisation in
ndia pp prin er ew e hi
khopadh a erah a anta aria nderstandin ndias rban frontier what is behind
the e er en e of ens s towns in ndia he or d ank
andi an eeta and ha a a khar rban ha en es in ndia e iew of e ent o i eas res abitat
nternationa o pp
tates sked to on ert rban reas into tat tor rban o a odies ress nfor ation rea
inistr of o sin and rban ffairs o ern ent of ndia
radhan na know ed ed rbanisation ew ens s towns of ndia ono i and o iti a eek
andhawa arsha o i transfor ations and trans ations essons for s stainab e water
ana e ent in peri rban e hi ndia n iron ent and annin o ern ent and o i
et oe and t phanie awa a a ewa eds o ernin ndias etropo ises ew e hi o t ed e ndia
a anta opa he po iti s of assi ation and the o p e it of o ernan e in ens s towns ono i and
o iti a eek
haw d ndian ities in transition rient a k wan
i ara akrishnan e isitin the th onstit tiona end ent for better etropo itan o ernan e
ono i and o iti a eek
i ara akrishnan nd in h andbook of rbani ation in ndia an ana sis of trends and
pro esses ford ni ersit ress
i ara akrishnan rnin rban sta in r ra he ind essed fro https www thehind o
toda s paper tp nationa tp ta i nad t rnin rban sta in r ra arti e e e at
werts enis khopadh a iff se rbani ation and e a rban e ions in ndia etween
e tant and estri ti e rbanis n nternationa and ransnationa erspe ti es on rban ste s pp
prin er in apore
ishwanath a owa o ano ra ia har a an rbani ation be ond
ni ipa bo ndaries n rt rin etropo itan e ono ies and onne tin peri rban areas in ndia o

Bridging the Local -- Beyond the 73rd and 74th Amendment

 Federalism

END NOTES

1. he a thors ratef a know ed e the inp ts of anh haran radhan whi e writin this pie e
2. n if the ore it is taken into a o nt not the entire rban a o eration
3. ens s town is a sett e ent whi h has a pop ation of or ore a pop ation densit of ore than persons s k and a a e
ain workfor e parti ipation of or ore s whi h onstit te an rban o a bod are a to ati a defined as rban
n ike ndia an o ntries re on on a pop ation si e to distin ish between r ra and rban areas f on pop ation si e was sed
to identif ens s towns in ndia and i a es with ore than inhabitants were onsidered rban the share of the rban pop ation
wo d in rease b abo t per enta e points
or e a p e the rowth rate of the ore it in the bai etropo itan re ion is whi e the peripher rew at within
ons er e pendit re data re ea s that a s a town ons er spends abo t of a ons er in i ion p s ities
owe er their spendin pattern is er si i ar to ar e ities with si i ar a o nts bein spent on ite s ike on e an e rent or ons er
d rab es as in i ion p s ities he share of ho seho ds whi h owns a otori ed two whee er is in these r rban areas and in
s a er s whi h has a pop ation of ess than he share of ho seho ds with septi tank is in r rban areas whi e it is
in s a er towns
he share of ho seho ds with in ho se a ess to water is in i a es in r rban areas s and ar e i a es and in s a er
s whi h ha e ess than a h ndred tho sand pop ation
or e a p e the share of ho seho ds onne ted to the piped sewera e network is in the ni ipa area of derabad b t drops to
in the other s and in the a the s in the derabad etropo itan area he share of i a es with piped sewer in
is nterestin the o t rowths of whi h are a so r ra b t are onti o s to the ore it ha e a hi her share of piped
sewer o era e at
8. he interests of the state o ern ents to re assif the s or other for s of r rban spa es into s a so aries b the shiftin rowth
tra e tories a ross states hi e states ike arat re assified s to s within hose to not re assif an of the into
for a rban ate ories
here are a ot of se f pro isions of p b i ser i es ike roads piped onne tion of water to ho seho ds in so e of the ri her peri rban
nei hbo rhoods of ar er ities andhawa et a ehta et a
10. essed fro https ti esofindia indiati es o it h derabad new ni ipa ities fro a st to boost s b rbs infra
arti eshow s at th pri
11. he o kata it is do inated b e ow ta is and a to ri kshaws whi e the peripher is ser ed b a ariet of different odes of
ser i es ike the batter operated e ri kshaws and diese f e ed ehi es ike ata a i and ia io pe a k of re ations at the
po i e and o a e e s ead to ontestations a ross there different kinds of ser i es whi h eads to operationa iss es and eas o e ent in
the peripheries instead of fa i itatin the ser i es
12. n ana sis of the th ono i ens s data shows on abo t of the pop ation resides in s h kind of sett e ents
where the share of an fa t rin to tota workfor e is ore than
13. he a bi o s part of the a t has s a ed to different responses fro the state o ern ents so far here has been persistent resistan e
fro the state o ern ents to i p e ent the pro isions of the a t in tota it and iss es ike water and sanitation ana e ent re ains
the prero ati e of parastata a en ies nder the ontro of state o ern ents for a a orit of ities er few finan ia and h an
reso r es f n tions ha e been transferred to ni ipa ities and s re ain weak hi h i htin the nwi in ness of the state to re in ish
its ontro o er the rban andi and a khar et and awa a a ewa
hi e s ha e rare been set p in ost states the ha e been on in o ed into ere ons tations whi e dea in with iss es rather
than an a ti e in o e ent in p annin f n tions i ara akrishnan
rin a the erstwhi e inistr of rban e e op ent a e o t with a notifi ation that asked a the states to take i ediate
and ne essar a tion to on ert a the ens s towns s into stat tor rban o a bodies s to pro ote p anned de e op ent
n on oin ana sis of the data shows that appro i ate ei ht i a es ha e been in ded in the pro e ts en isted nder
rban ost of whi h are nei hborin ar er rban o a bodies

Policy Challenges 2019-2024 Centre for Policy Research

 Federalism

Interstate Rivers and National Water Security instit tiona ode s or e hanis s a h es a ation or
re rren e of disp tes a ses h e osts to the e ono-
ndias states and se en s nion erritories share
nta onisti po iti s and po iti i ation hara teri e
its a or ri er basins his si p e fra in presents
interstate river water relations.1 n the other hand
how ndias water se rit is e bedded in a an as of
the i p e entation of interstate ri er de e op ent
deep interdependent interstate h dro eo raphies
pro e ts and re enation pro ra es too is i paired
he o ntr s water se rit is de ned and deter ined
b the ar er oid of a rob st e os ste for interstate
b how its interstate ri ers are o erned
oordination or o aboration
he rrent state of po i and instit tiona set p for
he histor of interstate ri er water o ernan e of ndia
interstate river water governance, however, does not in-
part e p ains this state of affairs in e ndependen e
spire on den e nterstate ri er water disp tes e er e
s h o ernan e has been dri en b e i en dri en
and re r fre ent heir ad di ation in o es on
ontin ent responses he po i e os ste is
de a s hara teri ed b ad ersaria iti ations tates
pri ari set to respond to the e i en ies of on i ts
o ten def di ia dire ti es fro either the trib na s
and has re ained ob i io s to the idea of interstate
or the pre e o rt eadin to onstit tiona rises
ooperation here is pra ti a no re iab e e hanis
p e entation of the trib na awards de isions
for interstate oordination and o aboration o er ri er
s ffers fro an a te absen e of re iab e interstate

8
waters si p e fa t attests to this assess ent he Ambitious Plans and Ambiguous Foundations
nterstate i er ater isp tes t for reso in
e era pra ti a reasons ne essitate this re isitin of
interstate ri er water disp tes has been a ended at
interstate ri er water o ernan e with parti ar fo s
east a do en ti es et another a end ent i was
on entre state re ations he o ntr has set itse f
tab ed before the ar ia ent in n ontrast the
a bitio s p ans for reater e ono i rowth and these
i er oards t ena ted at the sa e ti e as the
depend on stron and re iab e interstate ri er water
for er and eant to enab e interstate o aboration
ooperation hese p ans ha e both de e op ent and
has ne er been to hed sin e its in eption rther
onser ation oa s he de e op ent pro e ts are not
it has ne er been sed to reate an boards not e en
st the on entiona s pp a entation b t a so
on e or so e ine p i ab e reason the ri er boards
in de in and waterwa s er proposed in and
created so far draw on alternative and ad hoc channels
waterwa s pose new ha en es for interstate ri er water
of noti ations of the o ern ent state bif r ation
governance.3 he ontro ersia inter inkin of ri ers has
aws or separate ts of ar ia ent he t has
re ei ed patrona e fro onse ti e o ern ents et
re ained nto hed e en when it was fo nd n sab e
has not ade h headwa part d e to the h rd es
for the p rpose for whi h it was intended
of interstate coordination.
he onstit tiona di ision of powers with respe t to
he a ship pro ra e of an a re enation is a
water and its i p e entation is the other reason he
response to the intense stressed ri er e os ste s
s b e t of water is isted nder ntr of the tate ist
t has re ei ed npre edented attention and in est-
his howe er is s b e t to ntr of the nion ist per-
ents et the b ind spot with respe t to the ten o s
tainin to the re ation and de e op ent of interstate
entre state and interstate re ations re ains an nad-
rivers.2 n the initia ears of sin e part do inan e the
dressed ha en e f nded b the entra o -
ne i en e in de niti e ar in o t the entres ro e
ern ent this pro ra e a ha e so e te porar
has ed to the states ass in nfettered and e si e
i pa t t s stainin it o er a on er ter wi re ire
powers o er water o ernan e a aswa er has
a deeper instit tiona i ation of the pro ra e a on
a ed it the wi f abdi ation of its ro e b the entre
the states, in addition to closer interstate coordination
and o aboration
his tra e tor of e o tion has ontrib ted to the
entren h ent of territoria i ed per eptions and o -
he ne essar strate i shi t towards broader nte rated
petiti e approa hes of states towards water reso r e
ater eso r e ana e ent a so proposed
de e op ent his has been aided enera b the
b the ationa ater o i wi itse f re ire a
transfor ation of ndian state and po it o er the ears
onsens s a on states si p e arti ation of na-
he initia sin e part do inan e has i en wa to oa-
tiona po i wi not a hie e o p ian e b states he
itiona po iti s ea in reater roo for s bre iona is
histori a eo raphies of ne en water reso r e de e -
and territorialized assertions of states.
op ent a on states wi re ire de iberations o er the
trade offs in shi tin to he shi t has to be ed b
n o t o e of this for the enter state re ations o er
the Centre with the consent of the states.
water governance is the increasing resistance of states
to an atte pt b the enter to assert its ro e nder the
bo e a there are the new ha en es of opin with
ntr o er interstate ri er water o ernan e entra
i ate han e inked risks his bi nknown adds to
instit tions ike entra ater o ission and
the prob e of interstate oordination with its n er-
entra ro nd ater oard are per ei ed to
tainties o er spa e as we as ti e nterstate o abora-
be in reasin irre e ant tates p rs e their respe ti e
tion and ooperation is entra to opin with the risk of
territoria isions of water reso r e de e op ent with
disasters s h as oods
itt e or no appre iation for the ati e i pa t with
ad erse i p i ations for nationa water se rit

Policy Challenges 2019-2024 Centre for Policy Research 9

 Federalism

words the water a enda has to be e e ated for a federa

onsens s sa a on the ines of the refor s t
n order to rea i e the de e op ent oa s of these
the ore of this onsens s wi be the need for the entre
a bitio s pro e ts and in the interest of on er ter
to re position itse f he po iti a pro ess has to ai at
water se rit the o ern ent has to be in proa ti e
rede nin the entres ro e nder ntr of the nion
engaging with the challenge of interstate river water
ist onsiderin the e er in ha en es of interstate
o ernan e his re ires a f nda enta strate i shi t
ri er water o ernan e his does not ean reor ani in
awa fro the rrent re ian e on on i t reso tion
the onstit tiona di ision of powers whi h is ike to
and akin de iberate efforts to enab e and n rt re an
fa e ehe ent resistan e fro states nstead the oa
e os ste for interstate ri er water ooperation h
wi be to rede ne the e istin entre state di ision of
an e os ste is sef for disp te reso tion as we in
powers in ter s of f n tiona and operationa respon-
essentia ter s nterstate ri er water disp te reso tion
sibi ities re ired to p rs e the a bitio s p ans and
o ten fai s be a se there are no re iab e e hanis s
pro ra es or instan e the nion o ern ent a
for i p e entin the trib na awards or de isions t
ass e a pree inent ro e in redib e data atherin and
an on be possib e when the states part to a on i t
pro idin know ed e and apa it inp ts
o e ti e ontrib te to i in effe t to the de isions
h s interstate ri er water ooperation e os ste is a
he idea of b i din federa onsens s for water re-
ne essar ondition for effe ti e on i t reso tion
for s is not new he need for s h a po iti a pro ess
and for was fe t before as we or instan e the
his intri ate ink in fa t a ent ates the e er in
ationa ater eso r es o n i has been reated
nderstandin abo t the nat re of transbo ndar
nder the ae is of the inistr of ater eso r es he
re ationship when ri ers are shared between territoria
ationa e e op ent o n i is another for for
entities he binar of either on i t or ooperation is
s h federa de iberations hese for s fai ed to de i -
a awed pre ise to address the ha en es of trans-
er for a ariet of reasons ke reason is their fai re to
bo ndar ri er sharin nstead it is in reasin e ident
ass a e states abo t their ne tra it and ob e ti it in
that the o p e po iti a e o o of transbo ndar
enab in de iberations the are per ei ed as po iti a
ri er water sharin onstit tes a oe isten e of on i t
s b e ti e and ser in the a endas of the parti ar
and ooperation he desi n of po i and instit tiona
po iti a re i es in power
solutions has to acknowledge this character, and cannot
re on e a instr ents a one t has to be s pp e-
he nter state o n i a be n rt red as an instit -
ented with other e e ents of the e os ste po i
tiona spa e for these federa de iberations he onsti-
instit tions and po iti s
t tion pro ides for the nter tate o n i for the spe i
p rpose of interstate oordination his r ia federa
irst there has to be ear arti ated po i intent
for has been ne e ted and nder ined d e to its
he ne t iteration of the ationa ater o i st
i on ei ed p rpose and o ation he nter tate o n-
de are the reation and n rt rin of an e os ste for
i has been i on ei ed as a depart ent of the inistr
interstate ri er water ooperation as one of its priori-
of o e ffairs and is seen as po iti a s b e ti e
ties and en n iate spe i steps towards settin the
nstead it sho d ha e been on ei ed and ti ated as
pro ess in otion
an instit tion at par with other instit tions ser in ke
onstit tiona f n tions for de iberati e de o ra
e ond po iti s ha e to ake the po i refor s pos-
sib e n iew of the histori a e o tion of entre state
rti e pro idin for the nter tate o n i in i-
water re ations in pra ti e the po i and instit tiona
denta fo ows the pe iar rti e that pro ides
refor s for interstate ooperation wi ha e to be b i t on
for barrin the risdi tion of the pre e o rt he
a po iti a onsens s for adoption of this path n other
onstit tiona fra ers were ons io s of the i itations

20
 Federalism

of the o rts in addressin ha en es posed b inter- as the nter tate o n i wi enab e s h onsens s
state ri er water disp tes the a so rea i ed that a rob st b i din and e o tion of o aborati e so tions
de iberati e pro ess is essentia for their reso tion he
s ess stories of water refor s in other o parab e he fo rth fa tor is p rs in an effe ti e strate for
federa onte ts for e a p e er an or stra ia interstate ri er water disp tes reso tion his re ires
are o ten e ebrated entra to these s ess stories is a a o rse orre tion histori a nderstandin of the
stron instit tion offerin a spa e for federa de ibera- n s a approa h of barrin o rts risdi tion and
tions the orkin ro p of the edera tates settin p trib na s for ad di ation re ea s that
in er an or the o n i of stra ian o ern- these arran e ents were on ei ed with the intent of
ents in stra ia he nter tate o n i has to ser e a ens rin na it to the reso tion in a swi t anner
si i ar f n tion to p rs e the proposed refor s st ike e iberati e approa hes were inte ra to trib na s
these de iberati e spa es the nter tate o n i an be ad di ation of the disp tes his was the approa h
a per anent de iberati e for to take forward refor s sed b the rst eneration of trib na s onstit ted
he o n i s s ope howe er a not be restri ted to for rishna oda ari and ar ada disp tes er
water reso r es it an ha e workin ro ps for different ti e the s bse ent a end ents to the t ha e
se tors ser in the p rpose of interstate oordination t rned trib na s into o rts and ha e in reasin
in enti i ed ad ersaria iti ations his is one of the
he third e e ent is to de e op stron and resi ient reasons for e tended de a s in i in awa awards
instit tiona ode s for interstate oordination o - he re ent de ision of the pre e o rt odif in
p ian e or o aboration pri ari to i e effe t to an the a er trib na award is st another instan e
interstate pro e t pro ra e or a ree ent i er of this trend tendin pre e o rt s risdi tion
asin ana e ent i has been proposed for opens p additiona a ers of di ia iti ation he
the p rpose rep a in the i er oards t t it pro esses of ad di ation b trib na s needs to be
ass es that entra dri en ri er basin a thorities an re iewed with d e attention to o rts i itations
ser e these f n tions o e states ha e a read resisted in addressin interstate ri er water disp tes he
this on eption t is n ike that these a thorities wi entre st onsider stren thenin the ad di ation
be effe ti e witho t a onsens s abo t the f n tion- with deeper inte ration of de iberati e pro esses
a ro es of the entre and states and the operationa and b i din on the ooperation e os ste he
do ain of ri er basin a thorities he i does not b i d nterstate i er ater isp tes end ent i
on s h a onsens s instead it ass es that in sion b proposin a er anent rib na has ade
of representations fro states is s f ient to ake the a feeb e atte pt to in orporate this e e ent whi e
instit tions work i er asin thorities or an other ontin in with the ad ersaria hara ter of trib na s
for s of interstate instit tiona ode s need to e er e f n tionin isp tes eso tion o ittee has
fro and b i d pon the onto rs of the respe ti e a so been proposed to atte pt reso tion thro h
f n tiona spa es e er in fro the federa onsens s ediation ts proposed o position howe er does
n end rin and e powered de iberati e for s h not inspire on den e

END NOTES

1. o i strate the pre e o rt is rrent de iberatin on the s it fi ed b the a i ad for a o pensation of abo t rore
for rop osses d e to a e ed fai re of ti e re ease of a er waters b arnataka in st one season
2. his was the basis for ena tin the i er oards t
3. he ationa aterwa s t
ir a hi Transboundary Water Politics in the Developing World ford o t ed e

Policy Challenges 2019-2024 Centre for Policy Research 2

 Federalism

Policy Needs to Leverage its Border States

ndias nei hbo rhood po i akes for a fee ood t for a its enth siasti rhetori there is a rio s
narrati e of rei a inin borders as brid es and parado at the heart of ndias s bre iona dis o rse
speaks a o fortab e os opo itan an a e a in hi e the border states are pro e ted as brid es
ai to a ni ersa ision of oba is he o ntr s between ndia and the nei hbo rhood in a t a
dip o ati en a e ent has be n to a ire a e e pra ti e ndias nei hbo rhood po i re ains
of di ersit and o p e it in re ent ears with a host na bi o s top down and ontin es to be r
of s bre iona initiati es s h as the a of en a ed and steered b ew e hi his is both p in
ti e tora nitiati e for e hni a and ono i and prob e ati sin e the notion of s bre iona
ooperation the ekon an a ono i ooperation is f nda enta pre ised on akin
ooperation and the an adesh hina ndia eo raphi a pro i ate border re ions within two
an ar ono i orridor he past e or ore o ntries i portant sites of ooperation
ears ha e seen a f rther deepenin of this idea tandin this o i irt a on its head it is ew
at the s bstanti e as we as rhetori a e e s with e hi that has re ar hosted s orkin
initiati es s h as the ei hbo rhood irst po i ro ps on re iona o ernan e iss es s h as disaster
the re hristened t ast po i ri e inister ana e ent sto s ooperation and re ation of
odi s hi h pro e isits to o th sian apita s and passen er and ar o ehi ar traf o parison
the settin p of a tates i ision at the inistr of with the workin of hinas s bre iona dis o rse is
terna ffairs 1
both re ea in and soberin hinas border pro in e

22
of nnan for e a p e re ar hosts the reater p atfor s to ore effe ti e anti ipate and address
ekon b re ion orkin ro ps on a ran e of s h ha en es has to be the rst order of b siness for
re iona o ernan e iss es s h as en iron ent the ndian o ern ent
to ris and a ri t re he entra isin i p se is
a ain a too e ident in ndias dis o rse on border
When Practice Meets Policy
trade for instan e in har h a ttarakhand an
an ient border town o ated on the trans i a a an pri i e in the for a state ed inter o ern enta
tradin ro tes with epa and hina rade per its pro esses ndian dip o a has ended p o p ete
required to conduct trade are no longer issued at the o er ookin a ran e of pra ti es at the border re ions
border b t instead in ehrad n the state apita that are f nda enta reshapin ndias en a e ent
entai in protra ted pro ed ra de a s and osts with its nei hbo rhood bnationa steered
aken to ether di hoto ies s h as these represent po i networks need to be re o nised as a e d of
a assi instan e of s bopti a s bre iona is at o ernan e in their own ri ht with a apa it to res a e
work a dis o rse that has ear ended p ai in ndias forei n po i be ond so e nationa fra es
low and hitting lower.2 o a networks both for a and infor a an work
with and not ne essari at ross p rposes with the
hese di hoto ies a so indi ate that there has been entre on re iona p b i oods hat is ost strikin
irt a no po iti a in enti e to in est in an instit - abo t ndias e o in s bnationa dip o a is the
tiona ised two wa en a e ent between nationa sheer di ersit of transborder e han es bein steered
and s bnationa po i a tors 3 his is a a se for b border states in ter s of their nat re for a
serious concern and can result in institutional gridlocks and infor a a ti ities so ia e ono i t ra
between the entre and states at a ti e when inter- po iti a d ration s stained and episodi and a tors
nationa en a e ent b border states is in reasin f p b i and pri ate
re ent trends are an thin to o b reso r e on i ts
between the nationa and s bnationa o ern ents otto p arket dri en pro esses of e ono i
o d be a potentia ine e d ihar s de and for an integration are today resulting in the rise of a new set
e it stake in power pro e ts bein e e ted b ndia of stakeho ders with stakes in s bre iona inte ration
in h tan as we as the eesta ri er disp te between pro esses here are three reasons wh a serio s
ndia and an adesh arisin o t of the dead o k en a e ent with these pro esses is ita irst
between the entre and est en a brin o t the there is rowin e iden e that border re ions are
inade a of e istin instit tiona arran e ents in be innin to effe ti e en a e the entre to deepen
ne otiatin s h on i ts his is a so addin an ed e s bre iona inte ration pro esses he effe ts of this
to do esti reso r e on i ts as an be seen in the obb in an be seen in ndias de ision to open
re ent onstit tiona disp te between a a and and border haats a on its bo ndar with an adesh
the entre wherein the entre ontested a a and s with a on the border with est en a at the
ai that rti e of the onstit tion onferred e ha a a border e in rip ra and fo r in ssa
pon it the ri ht to de e op its nat ra as reser es f rip ra re ent s essf obbied the entra
ew e hi does not atte pt to this po i a o ern ent to per it the e port of s rp s power to
these rowin federa state on i ts wi erode o era an adesh e ond dire t transborder s bnationa
state apa it in da a in wa s he apa it or the inks ha e on o asion b passed the entre to break
andate of e istin instit tiona for s s h as the dif t o a s and bott ene ks ase in point is
s tates i ision or the nter tate o n i in their the onstr tion of the a atana as power
rrent ake p to ediate and reso e these on i ts pro e t in so thern rip ra i en the ha en es in
is open to debate e a ibratin these federa state transportin hea e ip ent to rip ra d e to the

Policy Challenges 2019-2024 Centre for Policy Research 23

 Federalism

dif t terrain an adesh a owed tranship ent of The Future is Federal

hea t rbines and a hiner thro h its territor
d in ndian forei n po i towards a pra ti e
an adeshs de ision to a ow tranship ent be a e
based te p ate has the potentia to in orporate a
a riti a fa tor in the s essf o p etion of the
ri h and hitherto ntapped orp s of do ain and
pro e t a atana wi be book arked in ndias e o in
e d know ed e that nationa e e po i akers
s bnationa ross border en a e ent as ar ab
ha e no eans of a irin on their own o i
one of the rst instan es of s bre iona prob e
need not a wa s di tate pra ti e instead po i and
so in hird the reatest dis rsi e potentia of
pra ti e need to o e o e into an instit tiona ised
s bre iona is ar ab ies in its apa it to position
two wa ow of o ni ation nstit tiona isin
the local as a central actor in the governance agenda.
ons tations with a new set of border stakeho ders
t wi be s bopti a to on ei e the as ere
s h as e is ati e bodies both at the entra and
a ents for onitorin the i p e entation of ser i e
state e e s edia and i i so iet or anisations an
de i er s ste s ons tati e pro esses between
o a on wa in ens rin that these a tors be o e
ke instit tiona a tors ha e to be both ontin o s
infor ed inter o tors in shapin ndias e o in
and in si e brin in to ether re e ant o a ine
nei hbo rhood po i ot wi howe er depend on
depart ents and of ia s a ross a e e s fro
the feedba k oops that are p t in p a e for reati e
p annin thro h onitorin to i p e entation he
wa s of power sharin instit tiona earnin and
o ationa ad anta e of border states as pri ar points
adaptation to prod e in si e o t o es t is on
of onta t with the nei hbo rhood an a so he p p
then that one an reate a e e p a in e d and a
riti a transbo ndar o ernan e aps or instan e
eas re of parit between entra and state e e
border re ions an p a an i portant brid in f n tion
po i a tors ndias nei hbo rhood po i has the
b fa i itatin networked o ernan e in s bre iona
potentia to prod e a odest b t a ab e spa e for
sia e era s h networks s h as the sian
border states to be o e a ti e partners in fra in
n iron enta o p ian e and nfor e ent etwork
and fashionin the ter s of ndias en a e ent with
o th sian iosphere eser e etwork
its nei hbo rhood t this potentia instit tiona
ea et sian etwork of stainab e ri t re
inno ation in ndian forei n po i is neither
and ioreso r es reshwater tion etwork
aranteed nor infa ib e f it is to s eed e era in
o th sia i a a an onser ation
the o ation of border states needs to o hand in hand
pproa hes and e hno o ies and o th
with the federa isation of ndias forei n po i
sian etwork on n iron enta aw are
a read in e isten e

END NOTES

1. inistr of terna ffairs o ern ent of ndia https ea o in ok sabha ht dt

he po iti a si na in has howe er been neither onsistent nor redib e or instan e whi e ri e inister odi
pro e ted his o ern ent s ei hbo rhood irst o i the then hief ono i d isor r ind bra anian has been on re ord in statin
that re iona e ono i inte ration in o th sia is not a rst priorit for ndia he ind epte ber

2. i i rian ndian s bre iona o ent etween a o k and a ard a e oi rief o e ber

3. he nter tate o n i a for desi ned to brin a hief inisters to work on operationa isin the oordination e hanis between the
entre and the states was on ened in a ter a ap of ears

i i rian bterranean bre iona is nterro atin the o e of orders in ndian esear h o rna of o ia ien es

24 The Future is Federal: Why Indian Foreign Policy Needs to Leverage its Border States
 Policy Challenges
2019 – 2024 URBANISATION

In the last three decades, Indian cities have emerged as centerpiece of the country’s growth
story. Not only have they expanded rapidly in size and wealth but they have also become the
beating heart of India’s economy and society. However, our understanding of cities and urban
governance remains outdated. Using new research, CPR faculty recommends a range of new
ideas to reform urban governance and to make cities more prosperous and inclusive. The
fo owin essa s ook at the arti ia barriers in interna i ration that hinder so ia obi it
the failures of urban design which discourage female participation in the labour force and
explore the linkages between formally-planned and informally-evolved aspects of Indian cities.

Policy Challenges 2019-2024 Centre for Policy Research 2

 Policy Challenges
2019 – 2024 Urbanisation

Multiply Urban ‘Growth Engines’,

Encourage Migration to Reboot Economy
MUKTA NAIK

On the cusp of its demographic dividend,1 India seeks to Migration mitigates poverty, yet barriers to long-term
boost economic growth by transitioning large numbers migration persist. Internal migrants constitute
of its working age population out of low productivity about 28.3% of India’s workforce. Another esti-
agricultural work, which currently absorbs 44% of the mated 40-100 million short-term migrants do
country’s workforce.2 While farm productivity is vital, not permanently move their residence, but power
urbanisation remains a key opportunity for large-scale critical sectors of the industry including agriculture,
employment transitions to the relatively productive manufacturing and construction.4 Moreover, short-
non-farm sector. Moreover, cities have the potential to term migration is a key avenue for rural households
be ‘engines of economic growth’ for national economies, to diversify their income and access employment
powered by an increase in productivity and innovation in more urbanized and developed regions; in this,
that e er es fro the sterin of r s and abo r migration is a counterbalance to regional imbal-
and tacit information spillovers between them.3 ances in the country. Worryingly, the urban wage
premium exists only for well-educated migrants.
For less educated rural migrants in the city, the
Key Urban Challenges
wa e pre i ki ks in on when the nd re ar
To leverage the urban opportunity, India needs to ad- employment; until then they remain casual workers
dress three si ni ant ha en es how to o e peop e likely to move through rural and urban locations
how to broaden the scope of urbanisation, and how to without putting down roots.5
improve the quality of urbanisation.

2
Policy documents have acknowledged the Constitutional Cities are messy and exclusionary, and urbanisation
guarantee for free movement within India and recog- processes are top-down. Indian urbanisation is caught
nized that the unfettered movement of human capital to in a paradoxical situation where, despite the attempts
where it is required is fundamental to India’s economic to address infrastructure and service gaps in larger
development.6 Yet, labour mobility remains a neglected cities, they remain increasingly unliveable as well as
area of p b i po i i rants are o ten nab e to a ess exclusionary.11 For residents, the economic opportunity
social protection, including access to subsidized food and represented by the city is countered by disincentives
housing. They face political exclusion because there is no like higher costs of food and housing, bad air quality,
system that enables the participation of absentee migrant inef ient transport and inade ate basi ser i es
voters in elections. Moreover, inter-state migrants from In urban policy, however, the messiness is perennially
so ia ba kward ate ories stand to ose a ess to af r - attributed to in-migration, slums and poverty; its
ative action provisions because SC/ST lists are prepared perceived antidote is a planning regime that seeks
by states. State-level domicile provisions continue to keep to indiscriminately transpose Chandigarh-like order
migrants out of higher education and formal employment. – replete with grids and single land-use zooming
Moving people, therefore, requires attention to economy, – on cities and even transitional rural spaces. This
society and institutional design. imagination does not recognize the diversity of spaces
that make up urban India, nor does it acknowledge the
India’s urbanisation is dispersed, but metros get most of the need for botto p efforts to b i d ho sin pro ide
attention. Urban policy in India since the mid-2000s services and organize transport.
has focused on transforming metropolitan areas – large
urban spaces that sprawl across districts and incorporate Driven from the top, urban development schemes
multiple municipal (and rural) entities – into economic have shaped cities in particular ways; there has been
powerho ses his has re e ted in the o ern ent of no serio s effort to de entra i e power to rban o a
India’s urban schemes over time. The Jawaharlal Nehru bodies – as mandated by the 74th Constitutional
National Urban Renewal Mission (JNNURM) exhibited Amendment – or equip cities with adequate numbers of
a clear metropolitan bias.7 Recent schemes such as the urban managers and technocrats. Cities are struggling
Atal Mission for Rejuvenation and Urban Transformation with providing basic services and raising revenue.
(AMRUT) and the Smart Cities Mission have also fa- Instead of being handled by the directly elected
voured metros and million-plus cities. government that runs the municipal corporation,
critical planning functions related to land use and
Policymakers have barely paid attention to the dispersed zoning; infrastructure and design interventions that
spatial nature of India’s urbanisation. It is driven not by can respond to local needs for public space, improved
the large-scale migration of villagers to the metropolis, as transport and safe streets; and economic functions
is popularly imagined, but by the natural growth of large related to industry and employment are carried out
city populations, and the in situ transition of large and by state government-run institutions (development
dense villages into census towns through demographic authorities, industrial development corporations
and economic changes.8 This trend, which is likely to con- and transport corporations). This makes it hard for
tinue,9 indicates that India’s urban vision need not be lim- governments to respond to localized problems, or tap
ited to the larger cities. In fact, the growth of small towns into community initiatives.
beyond the economics of large agglomerations is a key
emerging trend in India that needs to be understood and
Policy Recommendations
valorized.10 i en the s a e di ersit and spatia spread
of urbanisation processes in India, it might be entirely India needs an integrated approach to urban policy,
feasible to create hundreds of economic powerhouses in which recognizes the diversity of urban spaces in India,
multiple locations that can trigger economic mobility for focuses on strengthening city governance systems, and
millions and reduce regional inequalities. is migrant-friendly.

Policy Challenges 2019-2024 Centre for Policy Research 2

 Urbanisation

Multiply urban growth engines. That India is moving Un-think rigid planning regimes, empower local govern-
towards a spatially dispersed urban system is good ments. The rigid master plans of our cities – and not all of
news as it offers an opport nit to inter ene in p a es the ha e p ans ha e been ineffe ti e in strate i a
that are yet to replicate the mistakes of large cities. coordinating service provision and market forces to
We need to replace the imagination of transforming sustain economic growth. The governance and manage-
Mumbai into Shanghai – an onerous task – with a mis- ment of metropolitan areas might require a sui generis
sion to transform hundreds of small cities across India, approach,14 given the complexities of their problems and
say in the size range of 100,000-600,000 people, into the multiplicity of governance actors and institutions.
e ono i powerho ses e st draw on den e But here too, solutions that are locally incubated must
from the successes of such cities the world over, which be emulated. For instance, the secret to Kolkata’s reliable,
have been hotbeds of innovation and transformation. affordab e and we onne ted a to ri kshaw s ste is
localized legislation to circumvent the vagaries of central
The government must reorient central and state gov- laws and the involvement of representatives of rickshaw
ernment schemes to include small cities, as a means of unions in key decisions like route planning.15 Certainly, a
signalling their inclusion into India’s urban growth nar- serious attempt to devolve power to urban local bodies
rative. Not only will funding go much further in a small and activate district planning committees is a necessary
city, if designed in a non-prescriptive way schemes prerequisite to planned urbanisation.
could allow for solutions to emerge from the ground
up, thereby encouraging entrepreneurial energies and Beyond the logics of planning, a plethora of bottom-up
public institutions to collaborate. Contrary to expecta- initiati es st nd representation in rban refor
tions, these abound in small cities across India. In Odi- strategies, with the key objective of making cities
sha, for example, a state government scheme to grant ef ient and p easant p a es to i e work and so ia i e
titles to slum dwellers is leveraging the Pradhan Mantri Some of these initiatives deliver lasting solutions, such as
was o ana to set off a ini onstr tion the p b i ibrar in ana i oa that is open se en da s a
boom in small towns. In Kishangarh, Rajasthan – a city week to all residents to read, study and interact, or South
of 150,000 people – local business elite have leveraged Canara’s privately operated bus system that transports
infrastructure (such as a new airport, a private logistics thousands every day within and between the towns and
park and a dedicated rail freight corridor) to position villages of the coastal region. In other cases, they narrate
the city as a global centre for processing domestic and a story of continuing struggle. In resettlement colonies
imported marble and granite, generating work for both like Bhalswa in Delhi, residents have been instrumental
migrants and locals. in bringing in services and amenities through protests,
negotiations and legal representations with elected of-
A focus on small cities also helps villagers, given half ia s and b rea rats o er ears heir resi ien e and
of India’s rural-urban migration is to smaller cities. persistence eventually resulted in partially mitigating the
Placed at the mobility cusp, investments in small cities deep failures of the resettlement policy.
can go much further than basic infrastructure to create
quality jobs and develop skills, both for rural and urban Therefore, instead of viewing the presence of informal
workers; they can also build infrastructure that boosts settlements purely as failures of planning, Indian cities
quality of life (transport systems, street lighting and must leverage the vast amounts of investments resi-
public spaces).12 With over half of India’s industries dents have already made through auto-construction by
o ated in what is rrent assi ed as r ra 13 policies extending basic services to informal settlements. Fur-
related to industrial development, skill development ther, cities must amend statutory planning documents
and labour must also focus on transitional ‘rurban’ to include a variety of tenure typologies that promote
spaces. This would call for an integrated response mixed-use, mixed-income neighbourhoods and include
to urban and rural development that recognizes renta ho sin i i ar in order to nd onte t spe-
spatial diversity and responds to the wide variety of i so tions to ho se the ho e ess ens re spa es of
settlements across the country. livelihood for street vendors, treat faecal sludge from

28 Multiply Urban ‘Growth Engines’, Encourage Migration to Reboot Economy

 Urbanisation

septic tanks, and transport women safely to places of the Rashtriya Swasthya Bima Yojana (RSBY), but need
work, cities need to un-think the rigid plan and partner strengthening and improvement. Overall, ramping up
with communities, civil society and entrepreneurs to universalized social protection in education and health,
nd workab e ode s including critical interventions like Integrated Child
Development Scheme (ICDS), is likely to incentivize
Enable labour mobility and improve governance of mi- long-term migration to cities over time.17
gration. Finally, a focus on the portability of social
protection could be key to knocking down barriers for
Key Takeaways
migration, enabling rural workers to reduce risks as they
nd re ar e p o ent and so ia a eptan e in the With the thrust of urban change occurring in small
city. Immediately, the government has the opportunity towns and densifying villages, the incoming govern-
to amend legislations so as to facilitate the registration ment must seize the opportunity of incubating a large
of migrant construction workers in schemes under the number of economic powerhouses in dispersed loca-
Building and Other Construction Workers Act. This pro- tions. A reorienting of investments towards small cities,
gramme has an unspent pool of nearly INR 200 billion a push towards decentralization, and keen attention
for so ia bene ts of this hi h obi e and nerab e to botto p onte t spe i so tions wi pro ide
group. Similarly, delinking individuals from house-
16 pathways out of rigid planning and governance models
hold ration cards and a digital recordkeeping system that have not delivered. As cities become better places
would enable migrants to access Public Distribution to live and work, dismantling barriers to migration will
ste bene ts where er the i ht be peri ents become imperative for the equitable distribution of
with smart card systems are already underway, with e ono i opport nities and bene ts

END NOTES

1. ee pa es in the ono i re ew e hi ono i i ision epart ent of ono i ffairs inistr of inan e o ern ent
of India, 2017).
2. ode ed nternationa abo r r ani ation esti ate for https data wor dbank or indi ator s a re p s
3. ranton ities n ines of rowth and rosperit for e e opin o ntries orkin paper no ashin ton o ission on rowth
and e e op ent or d ank ed rban o i and ono i e e op ent n enda for the s ashin ton or d ank
4. P. Deshingkar and S. Akter, Migration and Human Development in India ri asta a abo r i ration in ndia e ent rends atterns and
Policy Issues’, Indian Journal of Labour Economics
5. P. Mukhopadhyay and M. Naik, ‘Moving from Principle to Practice’, in People on the Move: Advancing the Discourse on Migration & Jobs (JustJobs Network,
2018).
6. o eport of the orkin ro p on i ration ew e hi inistr of o sin and rban ffairs o ern ent of ndia
7. han he ther hat oes t ean for a owns in ndia orkin aper o
8. Pradhan 2013
9. Roy and Pradhan predict that in Census 2021, the share of India’s urban population will continue to grow beyond municipal limits in census towns,
both nder the in en e of etros and a so in ore o a i ed for s awa fro etros
10. enis and erah Subaltern Urbanisation in India: An introduction to the Dynamics of Ordinary Towns ew e hi prin er
11. ndian ities rank poor on the er er a it of i in re ee https www er er o newsroo a it of i in s r e ht
nd and a araswati i ration and sionar rbanisation in ndia Economic and Political Weekly
12. aik and ando ph i ration n tions in ndia and ndonesia e i a inin a es e orientin oi o i brief st obs etwork and
Centre for Policy Research, 2018).
13. hani oswa i and err s ndias an fa t rin e tor o in wa fro ities ationa rea of ono i esear h
14. See Partha Mukhopadhyay and Mukta Naik’s op-ed titled ‘For equitable growth, India must unthink the urban’, Hindustan Times, 17 December 2018,
https wwwhind stanti es o ana sis for e itab e rowth india st nthink the rban stor s ed h ht
15. rora et a nte ratin nter ediate b i ransport ithin ransport e ation in a e a it o kata ase t d ew e hi entre for o i
Research, 2016).
16. o anish and aik i rants in onstr tion ork a atin their e fare ra ework
17. Mukhopadhyay and Naik, ‘Moving from Principle to Practice’.

Policy Challenges 2019-2024 Centre for Policy Research 29

 Urbanisation

Image Source: Max Pixel

Regularizing Unauthorized Urban

Industrial Areas1

Informality and functionality are intricately interlinked Beyond Slums and Vendors: Factories
in our cities, for ‘the informal city is very much the
Two strands of discussion appear to dominate the
functioning city’.2 Policymakers, urban local bodies
discourse about cities and informality. First, the auto-
and government agencies need to move beyond
constructed nature of most urban neighbourhoods,3
dichotomies such as formal and informal, planned and
and the need for regularization and in situ upgradation
unplanned, and recognize the interconnections among
of informal settlements. Second, promoting and
these. The relationship between manufacturing and
supporting informal livelihoods like street trading
rban p annin needs to be rede ned ore attention
and hawking. There is, however, another form of
to informal manufacturing in our cities – where women
infor a a ti it that is entra to o r ities infor a
constitute a visible segment of the workforce – and
manufacturing and informally employed workers in
facilitating its connections to the formal segment
for a an fa t rin en when re ari ation is
will bear rich dividends, not just in supporting
initiated, the focus in cities across the country – whether
manufacturing, but also in raising female labour force
in Delhi, Bengaluru or even the smaller towns of
participation, another critical policy goal.
Maharashtra – has been on residential and commercial

30
activity, and rarely on industrial activity. Importantly, The Master Plan for Delhi (MPD), 2021, states
these enterprises onstit te a si ni ant so r e of that unplanned industrial areas are eligible for
urban employment, particularly for women, and as regularization if more than 70% of the plots in the
such, call for policy attention. area are engaged in industrial activity and subject
to f ent of other stip ated onditions t a s
The question of informal manufacturing is not down guidelines for the redevelopment of these
only a question of registration and tax status of an areas, pertaining to aspects like road widening,
enterprise – indeed it may well be registered – it provision of services, adherence to pollution control
is also about the tenuous relationship between norms, and development of open spaces and
manufacturing and urban planning, and needs to be parking facilities, among others. The redevelopment
understood in this context. plan is required to be formulated by the local body
or landowning agency in consultation with a society
of landowners in the industrial area, which should
Industry and the City: The Case of Delhi
be mandatorily formed.5
Delhi’s industrial landscape is dotted with several
small-scale industries, wherein garment and In practice, however, most non-conforming
footwear manufacturers comprise the largest industries have been subject to sealing drives to
share, followed by electrical machinery production close them down, and there has been no push for
and repair services.4 Industrialization in Delhi has their redevelopment – from the owners of small-
been marked by contestations over space, and the scale enterprises in these areas, local bodies or
relocation of ‘hazardous and noxious industries’, concerned government agencies. Industrial activity
‘large and heavy industries’, and ‘non-conforming is seen as largely operating in violation of MPD
industries’ to peripheral areas of the city. This provisions, as a source of pollution, and therefore, as
relocation was upheld by the Supreme Court in an aberration to a larger vision of the city. When the
and in its i ediate a ter ath res ted in pre e o rt rst ordered ind stria re o ation
unemployment for the urban poor and migrant units in non-conforming areas were asked to apply
workers who had come to depend on these industries for plots in the new industrial areas that were
for their livelihoods. de e oped ost on the frin es a itt e o er
50% of the applications were found eligible and
Currently, Delhi has industrial activity spread over 28 allotted plots. The approach to regularization has
p anned estates fo r atted fa tor o p e es and been entirely focused on relocation; units that were
ind stria areas noti ed for re ari ation he allotted plots but continue to function from the
areas noti ed for re ari ation or non onfor in non onfor in areas and did not shi t for a ariet
industrial areas, as they are otherwise known, are of reasons), those that were found ineligible for an
spaces of manufacturing activity that have emerged in alternative plot, and those that function in violation
residential areas, particularly around urban and rural of various industrial planning regulations are all
villages in response to a range of market demands. subject to being closed down.6
Many of these unplanned industrial areas could be
said to have emerged on village lands earmarked In the push to create world-class, clean and green
for residential (abadi) and/or agricultural use. While ities the e phasis o ten see s to be on the
there are some planning exemptions within village knowledge economy – IT and IT-enabled services
boundaries – lal dora areas – these do not extend to – with manufacturing activity relegated to the
industrial activity. Thus, these areas are unplanned, fringes of cities. The Delhi case starkly illustrates
unauthorized and ‘non-conforming’ in the sense of this. Further, in interviews, industrialists argued that
being located in areas not zoned for industrial use. Delhi is an unfriendly space for industrial growth,

Policy Challenges 2019-2024 Centre for Policy Research 3

 Urbanisation

and e phasi ed the rad a shi t of an fa t rin The two kinds of industrial areas are also linked in
hubs to the neighbouring state of Haryana, alluding the sense of labour circulation. Being located close to
to a o eration bene ts and ta in enti es a on each other, they draw upon the same pool of workers
other reasons. residing in nearby bastis, urban villages, resettlement
colonies and unauthorized colonies.8 Workers typically
t re o ations are disr pti e pro esses the ad erse access work through local networks of contractors
affe t both fa tor and ho e based work for those and neighbours, and move between planned and
engaged in them (particularly disadvantaging women), unplanned areas based on availability of work.
disrupt local work networks, and increase search, time
and distance costs for new jobs. In Chennai’s Kannagi
Women’s Work and Unplanned Industrial
Nagar resettlement colony, located along the city’s
Areas
IT corridor, a study found that ‘Industrial relocations
increase the costs for workers to access their jobs, and Unplanned industrial areas also provide relatively
depress real wages due to the fall in demand for certain e ib e work arran e ents that so e wo en a
kinds of work.’7 s nearb fa tories shi ted f rther awa prefer n ear ier e dwork in east e hi for instan e
they found it adversely limited work and livelihoods. some women reported preference for work in
workshops on the periphery of an urban village on
account of spatial proximity and the ability to return
Planned and Unplanned Industrial Areas: Co-
home during breaks, particularly to attend to children.9
located and Interlinked? Another study makes a similar observation in its
While the MPD 2021 and the Industrial Policy for distin tion between ar e appare r s and s a er
Delhi, 2010-21, distinguish between planned and workshops in Tiruppur in Tamil Nadu.10 In more recent
np anned ind stria areas narrati es fro the e d e dwork in e hi a fe a e worker who works for dai
stress the linkages between these two typologies of wages in an unplanned area and looks for work every
areas. In both these areas, industries are engaged in a day, stated she preferred this arrangement over earning
range of manufacturing activities spanning, inter alia, a meagre wage in the authorized industrial units,
footwear, auto parts, garments, plastics, steel, etc. and where the are o ten e pe ted to work o erti e
are typically described as ‘business-to-business’ (B2B)
enterprises that supply raw material and intermediate Co-located planned and unplanned industrial areas
prod ts to bi er r s in the i init n inter iews in also create home-based work opportunities for women,
an industrial area in northwest Delhi, factory owners which are localized and driven by spatial networks of
in both the planned and surrounding unplanned areas jaan-pehchaan (familiarity). Although home-based
spoke abo t inter inked a ti it hains footwear straps work can be low-paying and precarious, it may be
manufactured in an unplanned area, for instance, preferred b wo en for reasons of e ibi it and
supplied to factories manufacturing soles in the legitimacy. It enables women to manage housework
planned areas; sorting of residual cloth received from and childcare responsibilities along with undertaking
te ti e h bs ike aip r and r aon to be so d in a paid work from home. It is seen as a legitimate work
kattar (residual clothes) market. Owners in the planned choice for many women, for whom going out to work
areas also talked of a ‘broken chain’ due to ongoing in fa tories is o ten a o panied b notions of sti a
action in the city to close down the unplanned factories, and shame.11 In the areas studied, home-based workers
at the ti e of e d resear h were involved in a whole spectrum of work, including

32 Regularizing Unauthorized Urban Industrial Areas

 Urbanisation

putting threads into bookmarks, taping of speaker Redevelop and redesign neighbourhood amenities to
o ponents akin de orati e pie es akin b ffs encourage female labour force participation
for a hines po ishin stee akin bindis in ke bene t of re ari in these ind stria
insoles and upper parts for footwear, etc. Most of this clusters is the retention of a number of female jobs.
work is outsourced from factories in planned as well Redevelopment of industrial areas must thus be
as unplanned industrial areas; many of these are accompanied by interventions in the nearby residential
small workshops operating within urban villages and settlements in a manner that encourages more women
unauthorized colonies. Women are remunerated at to participate in the labour market. In the case of
piece rates. In the absence of designated work spaces, home-based workers, workspaces are intertwined with
work is carried out by groups using shared spaces, such living spaces, creating constraints on space. Women
as common courtyards of tenements or cots outside make do with whatever little community spaces they
their homes in bastis. Contractors and sub-contractors manage to access. It is essential for cities to recognize
o ten fe a e who brin the work to the wo en are that urban neighbourhoods are not just residential
o ten e bedded as residents thereb e era in their ones, and develop amenities from the perspective of
connections and building relationships of trust. both work and living. This would involve redesigning
neighbourhood amenities like community halls for
Key Policy Takeaways multiple uses, including common workspaces for
home-based workers with amenities like toilets,
Regulate and regularize existing industrial areas lighting and ventilation (in the manner of the co-
Instead of pushing industries to city peripheries and working spaces that have emerged to support modern
industrial parks with poor transport connectivity, start-up and innovation ecosystems).14 Urban local
we need measures to regulate existing industrial bodies should be sensitized and empowered to do this.
areas in the city, while ensuring their conformity to
environmental, safety and labour regulations. The
latter two are particularly important in light of several
Conclusion
cases of factory collapses and blatant violations In line with unauthorized residential and commercial
of labour safety and welfare. But they should areas, the regularization of unauthorized industrial
not be used as an excuse to drive away factories areas needs policy attention, not only because they
themselves. It should also be noted that when it are deeply imbricated with authorized industry and
comes to regularization/redevelopment of unplanned are essential to the growth of manufacturing, but also
industrial areas, ‘unrealistic planning norms’ be a se the pro ide e ib e work options to an
continue to hinder.12 Industrial planning norms, women, who would otherwise not be in the workforce.
th s need to be odi ed to a ow ore e ibi it This can be done, in many instances, without harming
in redevelopment of unplanned areas. In this, the environment. Indeed, the planning philosophies
planners can draw upon instances of regularization that underpin the guidelines that render them illegal
of residential areas such as unauthorized colonies may no longer be appropriate, given technical progress
in Delhi and gunthewaris in Maharashtra.13 Like and the imperatives of compact, mixed-use cities. This
residential and commercial areas, the regularization entire approach of excluding industry, particularly the
of industrial areas too needs to become a part of our informal sector, from our cities needs to be discarded.
urban planning discourse.

Policy Challenges 2019-2024 Centre for Policy Research 33

END NOTES

1. e draw pon esha nd ri s resear h en a e ents in e hi s ind stria areas to i strate iss es in this note o e of the e a p es here draw pon
e d intera tions o er st to an ar ond ted with itika pta as part of the initiati e at e hi ed b ar ana
Afridi.
2. P. Mukhopadhyay, ‘Formality and Functionality in Indian Cities’, Seminar
3. Auto construction refers to the process by which residents access resources, materials and ‘permissions’, and lay out settlements and construct
houses on their own. It is not necessarily ‘self-built’, in that it may involve the use of masons and contractors for the construction of houses as well
as common infrastructure, such as drains, etc.
4. Industrial Policy for Delhi: 2010–2021 ew e hi epart ent of nd stries o ern ent of ationa apita erritor of e hi
5. DDA, Master Plan for Delhi 2021 eprint ew e hi e hi e e op ent thorit https dda or in ddanew pdf annin reprint
mpd2021.pdf.
6. ntera tions with of ia s at the ni ipa orporation of e hi i i entre f e and e hi tate nd stria and nfrastr t re e e op ent
orporation td as part of the st d at e hi referred to ear ier
7. oe ho enkat and handrika o sin o es and o esti ork t d of aid o esti orkers fro a esett e ent o on in
hennai ono i and o iti a eek
8. har a and nd ri orkin fro o e is etter than oin t to the a tories patia beddedness en and abo r arket
Decisions of Women in the City of Delhi’, South Asia Multidisciplinary Academic Journal https o rna s openedition or sa a
9. har a and nd ri orkin fro o e is etter than oin t to the a tories
10. e e e ordis e ib e pe ia isation and ow ndian ar ent orkers riti e eo ibera abo r e i es Ethnography
11. har a and nd ri orkin fro o e is etter than oin t to the a tories
12. or instan e the ide ines for rede e op ent of np anned areas stip ate a ini reser ation of spa e for ir ation
roads ser i e anes parkin and oadin n oadin areas infrastr t re s h as p p ho se re station and po i e post and for parks
reen b ffer i en the densit of ost np anned ind stria areas s h nor s render rede e op ent infeasib e
13. A. Bhide, ‘The Regularising State’, Economic and Political Weekly
14. is ssions with ha ini inha of and iro a ehrotra of o e et o th sia

34 Regularizing Unauthorized Urban Industrial Areas

 Urbanisation

The Challenge of Indian Cities and

Female Labour Force Participation

According to the International Labour Organization, it is ar ed that wo en are offered white o ar obs
female labour force participation in India dropped and re-enter the labour force – as in the West.
from 35% in 1990 to 27% in 2014.1 The gender gap in
labour force participation in 2014 was 53 percentage But India’s numbers are far worse than what standard
points,2 and urban female labour force participation in theories predict. A recent World Bank report found that
India has all but stagnated for the last two decades.3 the country is ranked 121st out of 131 countries in the
female labour force participation rate, and much worse
This has occurred in a context of rising per capita than many of its neighbours.4 In fact, Sri Lanka’s female
income – which accelerated in India from the 1990s labour force participation stabilized at around 35% dec-
onward and a si ni ant red tion in ferti it rates ades ago, and Bangladesh consistently demonstrates
Indeed, standard economic theory predicts that as well over 50% female labour force participation.
countries move from lower income to middle income
(as India is doing), women leave the workforce as Most worryingly, India is losing its most educated
there is less need to engage in the most arduous and productive women.5 National Sample Survey
forms of labour – such as in agriculture and brick kilns (NSS) data shows that women who have passed
for a bit of e tra one s in o es rise s f ient higher secondary have the lowest female labour force

3
 Urbanisation

participation in India.6 This is to say nothing of the from entering the labour force. However, as our data
‘marriage penalty’ or ‘child penalty’ for women who shows, women themselves are quite willing to work
drop out of the labour force due to marriage and – and the men in the household are supportive of
childbirth. It is increasingly obvious that standard it, despite these patriarchal norms. But it is Indian
economic theory has it exactly backwards. We can’t cities that are not hospitable to women entering
wait for in o es to rise in o es in ndia wi sta nate the labour force. The proximate policy challenge for
n ess we nd wa s to et wo en espe ia the increasing female labour participation, thus, centres
most economically productive among them, back into around managing rural-urban transitions and
the labour force. making cities hospitable places for women to work.

What can policymakers do to draw women Why Are Indian Cities So Inhospitable to
back into the labour force? Women Wanting to Work?
Answering this question necessitates a closer look at Our understanding of female labour force
the data. Recent research shows that the decline in participation must necessarily encompass a broad
female labour force participation in India is largely swathe of economic activities and opportunities.
due to a drop in women entering the labour force Labour force participation may be ‘formal’ or
in rural India.7 In plain language, this means that ‘informal’, given that most labour in India is in
as rural incomes rise, women prefer not to do the informal sectors. Labour force participation may
backbreaking work of agricultural labour – which also include entrepreneurship activities, from
is understandable. But even then, there is still operating stores and food stalls to trading. It has been
si ni ant reater fe a e abo r for e parti ipation widely recognized that the role of many women in
in rural areas compared to urban areas. In other household duties – and its contribution to household
words, even with rising incomes, women in urban economic productivity and expenditure saving8 – is
areas are not entering the labour market. The rarely measured properly. Nonetheless, one must
i portant estion is this wh are wo en ref sin acknowledge the importance of female labour force
or unable to enter the labour force in urban areas, participation outside the home. The opportunity
where higher wage and higher skill jobs are available to engage in economic activity outside the home
in reater n bers increases the marginal value of employment, and
it is also more likely to break discriminatory gender
The challenges of integrating women into the labour norms that coerce women to stay at home. Thus,
force will only be accentuated as India continues to no atter how in o p ete the de nition standard
urbanize. From 2001-2011, the urban population growth measures of female labour force participation are
rate was 2.4 times that of the rural population growth important in and of themselves.
rate in ndia si ni ant hi her than an other de ada
urban-rural population growth ratio in the country’s From an economic perspective, a woman’s decision
history. We expect this process to accelerate. India is to participate in the workforce is broadly viewed
likely to see its urban population rise from 338 million in as a onse en e of e a atin two trade offs
2010 to 875 million in 2050; the increase of 497 million First, as aggregate household income increases,
between 2010 and 2050 is the largest projected growth the ar ina bene t of enterin the abo r for e
in urban population in world history. is tho ht to de rease that is if there is s f ient
money in the household, there are weaker incentives
Of course, the country will continue to manifest to get a job. Second, the incentive to join the labour
pernicious patriarchal norms that prevent women force decreases as the opportunity costs (psychic

3 The Challenge of Indian Cities and Female Labour Force Participation

 Urbanisation

or nan ia of ea in ho e in rease that is if it A Data-Driven Perspective

is parti ar dif t to arr o t ne essar tasks
While the aggregate data shows a worrying trend of
at home while working, an individual would be less
declining female labour force participation, we still
likely to work a job outside the home.These economic
lack systematic large-scale data on the labour market
trade offs in t rn intera t with rbanisation in
behaviour of working-age women. I have been con-
particular ways to negatively impact opportunities for
ducting a wide-ranging study of female labour force
women to enter the labour force.
participation jointly with Apurva Bamezai, Devesh
ap r and i an aishna he resear h is takin p a e
In rural India, agricultural work is typically near
in fo r ities hanbad ndore atna and aranasi
the home, so there is a natural source for female
– and the surrounding peri-urban and rural areas of
e p o ent en in non far work r ra ndia
each city. In each of the four urban areas (and sur-
has demonstrated the capacity to employ women.
rounding areas), 3500 households are to be surveyed.
For instance, more women than men availed
In each household, a working-age female and the
of the opportunities provided by the Mahatma
(usually male) primary wage earner is to be inter-
andhi ationa ra p o ent arantee t
viewed. This allows us to understand not only women’s
o ten s a infrastr t ra work near
own perceptions about the labour market but also
the village.9
possible constraints from men in the household.
In urban India, on the other hand, such a natural
Preliminary data from completed surveys in Dhanbad,
source of women’s employment rarely exists near
atna and aranasi re ea i portant trends n
the home. Industries like construction tend to be less
each of these three cities, only 20-30% of working-
preferred by women and also tend to discriminate
age women are (or have ever been) in the labour
against women in hiring. This obliges women in urban
force. This is consistent with the overall national
India to look far from home for suitable employment.
employment numbers described above. If a woman is
Unfortunately, the lack of safe transport for women
in the labour force, she is 20 to 30 percentage points
to tra e si ni ant distan es reates obsta es to
more likely to be engaged in agriculture compared
working outside the immediate locality. If women are
to her working male counterpart. This suggests that
unable to procure safe and stable transport to and
even when they are able to enter labour force, a
from a place of work in urban spaces, they are unlikely
disproportionate number of women are engaged in
to enter the labour market, which likely negatively
labour near the home.
impacts female labour force participation.

There is little evidence that women are willingly

These challenges help explain why urban women,
opting out of the labour force, as posited by the theory
a on the ost ski ed in the pop ation are o ten
of in o e effe ts on workin a e wo en who
missing from the labour market. In principle, more
ha e ne er been e p o ed we nd that of
we off and ed ated wo en sho d be ab e to
wo en are wi in to work if offered a s itab e ob 10
command higher wages and better jobs, which
Somewhat surprisingly, a very similar percentage of
would facilitate their entry into the labour force. But
male respondents believe that the woman should be
a ai in of these obs o ten i p ies that wo en ha e
a owed to work if offered a s itab e ob
to travel far for a suitable job. Thus, while a section
of economists continue to argue that urban Indian
In each of these three cities, less than 30% of women
women simply choose to stay at home as income
feel ‘very safe’ travelling alone at night, compared to
rises, the real reason for low urban female labour
more than 40% of men. Our preliminary analyses
force participation may well be the increased ‘costs’ of
also indicate that perceptions of easy, safe travel are
entering the labour market.

Policy Challenges 2019-2024 Centre for Policy Research 3

 Urbanisation

major determinants of whether a woman is willing to them. The data suggest that there exist both a
enter the labour force. Taken together, this provides desire for women to work and support at home for
suggestive evidence that the city can be inhospitable it, provided there is stable and safe transport to and
to women who are willing to enter the labour force, fro work ndeed re ent work b iri a orker has
even if there is support at home. shown how the safety of the Delhi Metro provided
many college-going women the opportunity to attend
high-quality colleges far from home.11 A similar
The Way Forward
principle is likely to encourage greater female labour
Declining female labour force participation is a force participation as well.
deeply worrying trend that must be reversed if India
is to accelerate its economic development. Strong But the challenges of each Indian city are unique and
patriarchal norms still exist in India, but, as discussed onte t spe i here are a n ber of o p i ated
here, low female labour force participation is about social factors that impact female labour force
much more than social conservatism. A major cause participation, and it would be foolhardy to generalize
for few women in the work force is how Indian cities too much from the data we have collected. Ultimately,
discourage women from entering the labour force. more systematic large-scale data collection on
women’s labour choices is required, as this is the only
Fundamentally, women are not joining the workforce way to identify actionable policies to address India’s
in urban India because urban infrastructure is failing low female labour force participation.

END NOTES

1. nternationa abo r r ani ation e ndi ators of the abo r arket atabase http data wor dbank or indi ator

2. World Bank, ‘World Development Indicators’, Database, 2015.

3. tephan asen and anneke ieters hat p ains the ta nation of e a e abor or e arti ipation in rban ndia he World Bank
Economic Review
4. o is ndres asab as pta eor e oseph ino braha and aria orreia re ario s rop eassessin atterns of e a e abor
Force Participation in India’, World Bank Policy Research Paper No. 8024 (World Bank, 2017).
5. It is worth noting that women who are college graduates do show somewhat higher levels of labour force participation. But this is likely
explained by the fact that households with the most liberal attitudes towards female work allow their daughters to complete college and
not get married as early, and display a host of other factors likely to encourage female labour force participation.
6. ar ana fridi ara inke an and anika aha an h re ewer arried o en oinin the ork or e in ndia e o position
na sis o er wo e ades orkin aper o
7. Ibid.
8. shwini eshpande and ai a abeer n isibi it are and t ra arriers he i e and hape of o en s ork in ndia shoka
ni ersit ono i s is ssion aper
9. ono i r e
10. his is onsistent with re ent e iden e fro the rin et her ohini ande and harit aria ro er oore o en and ork in
ndia es ripti e iden e and a e iew of otentia o i ies orkin aper o
11. iri a orker afet irst er ei ed isk of treet arass ent and d ation hoi es of o en orkin aper

38 The Challenge of Indian Cities and Female Labour Force Participation

 REGULATION AND
RESOURCES

Regulating India’s resources, be it land, water, ecology or the Internet, remains one of key
challenges confronting the government today. In each case, the system is burdened with
archaic legal structures, cumbersome judiciary and bureaucracy and the inability or the
lack of desire to adapt quickly. Be it an age-old problem like land ownership or an emerging
domain like digital technologies, the Indian state’s Achilles heel remains the same – lack of
rationa and o erar hin re ator fra eworks n the fo owin essa s fa t offer
broad prin ip es and spe i s estions to de e op ho isti approa hes to dea with the
challenge of regulating India’s resources.

Policy Challenges 2019-2024 Centre for Policy Research 39

 Regulation and
Resources

and Suggestions for Reform

NAMITA WAHI

n esti ated i ion peop e in ndia are affe ted b land, and judicial factors are behind the pendency of
on i t o er i ion he tares of and threatenin land disputes. Competing historical and current policy
in est ents worth bi ion 1 Land disputes clog narratives of property rights over land, have resulted in
all levels of courts in India, and account for the largest the oe isten e of n ero s on i tin aws eadin
set of cases in terms of both absolute numbers and to legal disputes over land. This is the legislative factor.
di ia penden bo t of a ases de ided b This problem is compounded by administrative failure
the pre e o rt in o e and disp tes of whi h to comply with the rule of law. This is the administrative
concern disputes relating to land acquisition. Again, fa tor he penden of on i t in t rn is a res t of
of a i i ases in ndia are re ated to and propert legal and evidentiary barriers in bringing land disputes
disputes.3 The average pendency of a land acquisition to court, largely due to administrative and judicial
dispute, from creation of the dispute to resolution by the incapacity; this prevents expeditious resolution of land
pre e o rt is ears 4 Since land is central to In- disputes. This is the judicial factor.
dias de e op enta tra e tor ndin a so tion to and
on i t is one of the fore ost po i ha en es for ndia
on licting narrati es policies and land la s create
land disputes
Understanding Incidence and Pendency of here are two on i tin narrati es abo t ownership
and ana e ent of and in ndia he rst narrati e
– inherited from the British colonial state – views com-
Legislative and administrative factors are responsible for
mon land, or land that is not privately owned, as merely
the hi h in iden e of e a and e tra e a on i ts o er

40
a o odit no different fro abo r and apita with Compensation and Transparency in Land Acquisition,
the state as the ultimate owner.6 This claim to ultimate Rehabilitation and Resettlement (RFCTLARR) Act has,
ownership gives the state the power to redistribute land in the e ears sin e it a e into for e been a ended
at wi as ar esse to se e ted bene iaries 7 Such state by seven state legislatures.14 This will likely create more
acquisition of land has historically been the source of legal disputes with respect to land acquisition, because
considerable dispute. According to estimates by CPR’s the original RFCTLARR Act provisions had been includ-
Land Rights Initiative (LRI), these disputes constitute ed with a iew to addressin rowin on i t o er and
of a and iti ation in the pre e o rt o er the acquisition. oreo er in an states we nd aws
past ears s o prehensi e st d of and a i- that provide for eviction of unauthorized occupants over
sition litigation before the Supreme Court over a 66- public lands coexisting with laws that provide for regu-
ear period fro to re ea s that a iti ation larization of unauthorized occupation, thereby creating
is with respect to privately held land. In contrast, data potentia for disp te on i t at the e e of aw itse f 16
fro the and on i t at h pro e t re ea s that the
ast a orit of rrent on ro nd e tra e a on i t Finally, the legislative landscape is complicated by the
over land is with respect to common lands.8 Thus, it is fact that many subjects pertaining to ‘land’ are in the
clear that in the face of state acquisition of land, when ‘state’ and ‘concurrent’ lists of the Constitution, lead-
people have legally recognized land rights, they go to ing to a multiplicity of original and active land laws.17
o rt here their ri hts are ins f ient re o ni ed et there is no of ia o prehensi e database of a
by law, they protest on the ground. and aws in ndia rst of its kind on oin st d
estimates that India has over a thousand original and
The second narrative – articulated by the ‘people’, active central and state land laws.18
including farmers, both landowners and tenants; and
other traditional communities, such as cattle grazers, The problem of ‘multiple laws’ is exacerbated by the
forest dwe ers triba s and sherfo k iews and as fact that these laws are administered by numerous
an economic, social and cultural resource over which government ministries at the central level, and depart-
tip e ro ps e er ise propert ri hts s a a ter ments at the state level. These include, for instance,
intense on-ground contestation, the property rights of the ministries of Law and Justice, Rural Development,
certain groups like Scheduled Tribes (STs)and tenants Mining, Industries, Infrastructure, Urban Development,
have been protected by the Constitution9 and statute, riba ffairs o e ffairs and efen e
whi e in ase of other ro ps ike sherfo k 11 their rights
are prote ted b sto and o ten e e ti e a tion
d inistrati e non co pliance it la also creates
and prolongs land disputes
As a consequence of these two historically competing
policy narratives, the constitutional, legislative and ad- here aws are ear disp tes and on i ts arise be-
ministrative framework governing land is as fragmented cause of administrative non-compliance with the rule
as the land holdings in India. na ted at different of law due to both unwillingness and incapacity. The
points of time, land laws clash with each other, because LRI study of all Supreme Court cases on land acquisi-
they seek to articulate in law these two competing nar- tion d rin shows that of the disp tes
ratives. For instance, the provisions of the Forest Rights arose because of administrative non-compliance with
t are in on i t with those of the ndian orest the legal procedure for acquisition of land, including
t and the orest onser ation t and the process of computation of market value compen-
are also threatened by proposed amendments to the sation for land acquired.19 ro nd of the disp tes
Indian Forest Act.13 e a on i ts a so arise when aws involved irregularities in completion of the procedure
are ena ted or a ended at different ti es to appease for acquisition. Almost half of such cases concerned
different stakeho ders or instan e the i ht to air with procedural irregularities involved administra-

Policy Challenges 2019-2024 Centre for Policy Research 4

 Regulation and
Resources

tive unwillingness to comply with the rule of law. The -

remaining half of the cases involved administrative in- dence and Pendency of Land Disputes
capacity to comply with the rule of law, in part because
of governmental failure to regularly update adminis- No government has ever
trative manuals based on changes in the law. Moreover, attempted an exercise to rationalize existing land laws.
the government was more likely to lose than win these But this is the need of the hour. The Law Ministry and
land disputes before the Supreme Court. Law Commission are best positioned to conduct or
o ission s h an e er ise his wo d in o e rst
Additionally, since colonial times, land in India has the creation of an exhaustive database of all land laws
been broadly administered by the revenue and for- in India. Once such a database of laws is created, the
est departments. But there have also always existed Law Ministry and Law Commission must identify, and
disputes between both departments as to which land Parliament must repeal, laws that deny rights of certain
belongs to which department. This in turn creates and groups of people, particularly women, and eliminate
prolongs land disputes. en ine on i ts between aws

Finally, legal disputes over land are also created by

evidentiary barriers for establishing rights over land in The government must take
the absence of documentary proof because of out- steps to ensure greater administrative capacity and
dated no and s r e s and ina rate o tdated and willingness to implement the rule of law. In addition,
records in most states. The Department of Land Re- we need greater coordination between government
sources has sought to resolve the problem of inaccurate departments dealing with land, transparency of land
land records through the ‘Digitisation of Land Records administration, and better access to land data. This can
Modernisation Programme’. However, unless the be achieved by undertaking the following measures.
government makes a serious attempt to update land
re ords on the ro nd to re e t the propert ri hts of » The Department of Land Resources, currently under
all landowners, digitizing them would not eliminate the Ministry of Rural Development, is the nodal
the problem of inaccurate land records. agency for coordination of land policy across states.
But land is not merely a rural concern. As India
becomes increasingly urbanized, the government
udicial reasons cause pendenc of land disputes needs to have a more comprehensive imagination of
Once a land dispute goes to court, serious judicial land requirements for rural and urban populations.
incapacity leads to pendency of disputes. First, a major The creation of a separate Ministry of Land to serve
cause for pendency of all disputes is India’s low judge- as the nodal agency for coordinating land policy
to-people ratio. Land cases form more than half of all a ross different t pes of and is riti a
civil cases and constitute over a quarter of cases before
the Supreme Court; they also have the longest penden- » here needs to be a oordinated effort between the
cy compared to other cases. Hence low judge-to-people Ministry of Law and Justice, Department of Land Re-
ratio particularly prolongs resolution of land disputes. cords, Ministry of Environment and Forest, Ministry
Second, the judiciary, particularly at its lowest levels, of riba ffairs state boards of re en e and state
a ks the nan ia te hni a and infrast t ra apa it forest depart ents to reso e on i tin and aws
necessary to resolve disputes quickly. Finally, poor and streamline land administration.
enforcement of court decisions by the government, and
limited judicial capacity to follow up on such enforce- » All government departments dealing with land, and
ment, especially when such decisions go against the particularly those involved in land acquisition, must
government, also lead to prolonging of land disputes. update administrative manuals in accordance with
changes in legislation and judicial precedent.

42
 Regulation and
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» Through dedicated interdepartmental meetings and » Filling up all existing vacancies

other coordination, government must resolve land
boundary disputes between the revenue and forest » Increasing the retirement age of subordinate judges
departments. to and those of i h o rt and pre e o rt
d es to and ears respe ti e
» he o ern ent st de ote nan ia and te hni a
resources to conduct land surveys and update paper » reater nan ia a o ations to the ower and hi her
re ords to re e t propert ri hts of a the peop e as judiciary, to enable infrastructure, technical and
opposed to digitization of existing records that are skills upgradation
substantially inaccurate.
Some states like Bihar have created separate land tribu-
» The government must ensure better skills training nals for expeditious resolution of land revenue cases.
so that of ia s dea in with and ha e both the his ode sho d be st died and if fo nd effe ti e
knowledge and the capacity to implement the rule should be replicated in other states.
of law. Institutional mechanisms should be designed
to in enti i e o p ian e with not de an e of the Conclusion
rule of law. and on i t in ndia both e a and e tra e a has
existed from colonial times because of the imposition
» Given the low success rate of government appeals, by the British state of the notion that all land not pri-
the government must carefully evaluate the like- vately held belongs to the ‘state’. This concept has been
lihood of success of an appeal before pursuing it. continuously resisted by the ‘people’ who were disem-
o ern ent of ia s st be in enti i ed to not powered by the colonial state’s deprivation of their legal
appeal cases that have little likelihood of success property rights under precolonial administration. Over
following such an evaluation. This would go a long time, competing ‘state’ and ‘people’ narratives over land
way in reducing pendency of land disputes. ha e ed to on i tin po i and e a inter entions
This has, in turn, led to legal disputes over land. Even
» The government must wholly commit to transparent
when laws are clear, administrative failure to comply
land administration and comply with its obligations
with the rule of law, due to unwillingness and incapac-
nder the i ht to nfor ation t to ake
ity, contributes to the incidence and pendency of land
di ita a essib e a and aws e e ti e noti a-
disputes. Serious judicial incapacity in turn prolongs
tions, rules, circulars, etc. pertaining to land admin-
pendency of land disputes.
istration. In addition, the government must open up
to public scrutiny departmental data on compliance Due to the increasing population pressure on land, and
with land laws. the corresponding demand for land to fuel the devel-
op ent en ine the s a e and s ope of and on i t
In addition to legislative and administrative reforms,
today has assumed gigantic proportions, stalling
judicial reforms can go a long way towards reducing the
development projects and threatening livelihoods and
penden of and iti ation in ndia he rst step in this
in est ents itab e and ef ient inter enerationa
direction would be the implementation of key recom-
management of land is necessary not just for India’s
mendations of the Law Commission. These include:
economic development, but also for its political and so-
cial stability. Therefore, working towards resolving land
» Changing the base for determining sanctioned posts
on i t in i ht of the abo e po i re o endations
for judges from ‘Judge: Population Ratio’ to ‘Rate of
is an imperative agenda for the new government.
Disposal Method

Policy Challenges 2019-2024 Centre for Policy Research 43

END NOTES

1. and on i t at h https www and on i twat h or

his is based on pre i inar ndin s fro a and i hts nitiati e st d and is a so onsistent with ndin s fro a o prehensi e
antitati e st d of the pre e o rt s ase oad between and ee i k obinson antitati e na sis of the ndian
Supreme Court’s Workload’, Journal of Empirical Legal Studies
3. aksh ess to sti e r e http dakshindia or wp ontent p oads aksh a ess to sti e s r e pdf
4. a ita ahi et a and isition in ndia e iew of pre e o rt ases fro to ew e hi
rti es and of the ndian onstit tion stip ate that the ndian state s eeds to a propert ai s and assets of the ritish state
6. B.H. Baden Powell, The Land Systems of British India ford ni ersit ress aden owe A Manual of Jurisprudence for Forest ficers
Being a Treatise on Forest Laws a tta
7. n st d esti ates that there are aws of and a isition a one in din state a end ents to the and isition t Supra
note 4.
8. and on i ts in ndia n nteri na sis https ri htsandreso r es or en p b i ation and on i ts india interi ana sis
9. rti e and rti e read with the i th and i th hed es respe ti e reate spe ia prote tions for and ri hts of hed ed
Tribes in geographically demarcated areas, known as Scheduled Areas.
tartin with the en a enan t a ost ea h a rarian state has aws prote tin tenan ri hts i i ar the orest i hts t
re o ni es and ri hts of hed ed ribes and other forest dwe in o nities
11. A prolonged movement has sought the enactment of a Fishing Rights Act, along the lines of the Forest Rights Act.
of a and ho din s in ndia are s a and ar ina ho din s taken to ether ha ee ens s of ndia
13. Nitin Sethi et al., ‘Modi government plans more draconian version of colonial-era Indian Forest Act’, The Wire ar h https thewire
in ri hts odi o ern ent p ans ore dra onian ersion of o onia era indian forest a t
14. These include the states of Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Telangana, Andhra Pradesh and Jharkhand. See Namita Wahi, ‘How
entra and state o ern ents di ted the histori and e is ation of The Economic Times https e ono i ti es indiati es o news
po iti s and nation how entra and state o ern ents ha e di ted the histori and e is ation of arti eshow s
Jairam Ramesh et al., Legislating for Justice: The Making of the 2013 Land Acquisition Law ew e hi ford ni ersit ress a ita
Wahi, ‘The Story of Jairam Rajya’ India Today ne https www indiatoda in a a ine books stor aira ra esh and
a isition aw book
16. Ongoing LRI study on ‘One Thousand Land Laws’.
17. rti e read with the e enth hed e of the onstit tion of ndia
18. and aws atabase see https www nb t o e a h ndreds of indian and aws a se onf sion on i t
resear hers ht
19. Wahi et al., ‘Land Acquisition in India’.
bid p
e tions of the ndian iden e t e phasi e that do ents st be pro ed b pri ar e iden e that is presentation of the
document itself. However, many people with legally recognized land rights do not have documentary proof for the same. This makes judicial
reso tion of and disp tes e tre e dif t
Much of the northeastern part of India, including the state of Assam, has never been fully surveyed. The last full land survey for the state of
ihar happened in s s
Former Minister for Rural Development notes that the state’s failure to fairly compensate those who lost land under the 1894 Act arose
due to inaccurate land records, rampant undervaluation of sale deeds, and absence of land markets in many rural areas. See Ramesh et al.,
Legislating for Justice.
wo reports the th aw o ission eport on rrears and a k o reatin dditiona di ia o an power http
aw o issiono ndia ni in reports eport o pdf and the th aw o ission eport on efor s in the di iar o e
estions http aw o issiono ndia ni in reports report pdf hi h i ht this as a a or a se for disp tes
25. Ibid.
Bina Agarwal, ‘Gender and Legal Rights in Agricultural Land in India’, Economic and Political Weekly ar h
27. Supra note i e dire t so r e
th aw o ission eport

44
 Regulation and
Resources

Protecting Water While Providing Water

PHILIPPE CULLET

India is facing an increasingly dire water situation. against this water scarcity challenge is a crisis of
he a o in warned that the o ntr is ab ndan e re e ted in the fre ent oods that af i t
facing the ‘worst water crisis in its history’.1 This is a several states on a regular basis.
crisis of availability of water with various states facing
in reasin fre ent and or a te water s ar it However, the most critical challenge of all is that of
for at least some part of the year. With increasing governance of water. On the one hand, the governance
water use and more erratic monsoons, per capita of water is organized largely around laws and institu-
water availability in the country is progressively tions tasked with allocating and regulating use of water
decreasing. An associated challenge is the country’s among various claimants. On the other hand, water
dependence on groundwater. This is particularly protection is seen as an environmental mandate that
si ni ant be a se the o erwhe in a orit of the remains largely distinct from water governance, even
population depends on groundwater for its domestic though water is an integral part of environmental gov-
water needs; for crores of people water is a source of ernance. This makes for poor outcomes since protecting
constant worry in a context where water tables are water is necessary to ensure availability today and in
rapidly falling and water quality rapidly diminishing. the future and thus conditions water use. The failure to
It is also a concern for irrigators since the bulk of effe ti e prote t water is an in reasin si ni ant
irrigation today depends on groundwater. Juxtaposed a se of on i ts a on different water sers

4
 Regulation and
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The challenge of water governance primarily Constitution gives primary responsibility to

e er es fro an inappropriate and ins f ient states, while the local dimensions of water
legal framework. This challenge can be broken into o ernan e ha e been on r ed in the nd and
different o ponents 73rd constitutional amendments and the Union
has some powers concerning matters that go
» he r es o ernin a ess to water are o ten drawn beyond the state level. The recognition that water
from old case laws that gave primary control over needs to be addressed at all levels is an excellent
water to landowners. This is problematic because starting point. In practice, however, even though
there is no mechanism to coordinate the cumu- the Supreme Court has repeatedly stated that the
lative use of a river by all riparian landowners, state at each level is a ‘public trustee’,3 this is not
leading to potential over-exploitation. It is also et re e ted in e is ation eadin to nne essar
inappropriate because it gives only landowners o ernan e on i ts
rights over a resource that every person needs to
use on a daily basis for drinking, food and domestic » The rules in place for drinking water supply are
needs. In addition, it precludes any basin-wide or separate for rban and r ra areas with different
aquifer-wide protection measures since control supply norms for rural and urban residents.4 This
over water is organized around the claims of indi- fragmented governance is problematic since urban
vidual landowners. This is particularly problematic areas increasingly rely on water from beyond the
for groundwater where each individual landowner municipal limits, thus making it imperative to
has the right to take as much groundwater as they address problems arising jointly.
please, to the extent of depriving other users of the
same aquifer and without considering the need to » As we have seen, the rules treat surface water and
avoid use beyond replenishment. groundwater separately. They also view pollution
as an environmental matter and usage as a water
» ne of the spe i prob e s with the abo e sector matter.
scheme is that the rules for surface water and
groundwater are not the same. It was determined As this brief description highlights, there are vast
in the nineteenth century when the connections gaps between regulation and practice, as well
between the two were not well understood. gaps between the existing parts of the regulatory
This has led to the very unfortunate situation framework. These issues have been critical concerns
where rules for surface water and groundwater in the water se tor and po i akers at different
are different oreo er ost water aws entre levels have tried to address them. This has led to
around issues related to surface water, leaving various law-making initiatives at the state and central
groundwater unregulated, even though this is levels. In keeping with the constitutional mandate,
the critical issue today. The largest use of water, states have adopted a number of water laws over the
irrigation, is mostly governed by laws that consider past couple of decades. This is commendable since
irrigation to be sourced from surface water it re e ts a re o nition that a n ber of iss es an
when in reality farmers rely overwhelmingly on on be effe ti e addressed if e is ation is adopted
groundwater for irrigation. At the same time, states have generally not engaged
independently in developing new water laws and
» The responsibility for governing water is divided have tended to react to policy priorities set elsewhere.
between different instit tions fro pan ha ats The resultant patchwork of laws does not necessarily
municipalities to states and the Union. The address the most critical issues.

4
 Regulation and
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The new government needs to focus, in particular,

on two initiatives: a framework water legislation Legislation
and a model groundwater law. Both of these have
Groundwater is and will remain the primary source
been in the making since the beginning of the
of water for most water uses for many years. Existing
decade, having been proposed and developed by
groundwater regulation is extremely dated; the
the last two governments at the Centre. They need
principles were laid out in the 19th century and have
a much stronger push to ensure a strong legal
not been updated. Recent regulatory interventions
framework for water that allows India to face the
focus on top-down attempts to control usage; they
ha en es of the s
are failing because they neither consider the broader
a ifer e e prote tion nor re e t the fa t that
ro ndwater se is rst a o a iss e to be addressed
at the local level. The rapidly deepening groundwater
The medley of water laws that exist in most states is
crisis calls for an entirely new perspective on
deficient in that these laws are not centred around
groundwater protection and groundwater rights.
any set of principles governing the water sector
as a whole. Principles have been laid down by the The central government has played an important role
higher judiciary over time but they have not been in providing models that states can use to develop
enshrined in legislation. This is a gap that impedes their own e is ations rst eneration of ode
effective governance of water and prevents water e is ation pro oted between and fo sed
conflicts from being resolved on bases that are essentially on introducing new control measures for
clear for all users. groundwater use without addressing either the rights
to groundwater or the need to protect, manage and
In the absence of framework legislation in any
re ate ro ndwater at a ifer e e n the
state, the Planning Commission of India took
Planning Commission of India took up the challenge
the initiati e of draftin s h a aw in The
of dra tin a o prehensi e ro ndwater ode aw
underlying idea was to ensure that all institutions
addressing protection and use from the local level to
concerned with water could rely on a single frame
the state level.7 n the o de ided to
of reference so that water governance becomes
o ba k to the dra t of the annin o ission and
more transparent and accessible. The drafting of
requested an updated version. This was delivered in
framework legislation was taken up again by the
and s b itted for o ents to states and the
Ministry of Water Resources, River Development &
NITI Aayog; a revised version incorporating comments
an a e enation o in eadin
was s b itted in
to an updated draft known as the National Water
ra ework i 6
The new government should ensure that the Model
ro ndwater stainab e ana e ent i
There is a strong need to ensure that all water and
is taken forward at the earliest.8 Where it exists, state
all water uses are governed by the same principles,
groundwater legislation based on the old model
and that protection and use principles are clearly
legislation is woefully incapable of addressing today’s
linked. The new government must ensure that this
challenges; in any case most of these Acts exist mostly
draft is taken up and adopted so that the country
on paper. The Bill is an appropriate template that
is better prepared to face the increasing number
the central government must formally adopt and
of water crises that are likely to beset a number of
promote to address the rapidly worsening situation
states in the s
in terms of falling water tables and diminishing water
quality besetting vast areas of the country.

Policy Challenges 2019-2024 Centre for Policy Research 4

 Regulation and
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The new government should immediately make

The water sector has been the object of much attention se of the two e istin dra ts prepared in the
from policymakers for several decades. Most regulatory previous legislature and take them forward:
interventions have, however, been largely piecemeal as
re e ted in the fa t that ost water aws are se tora » The adoption of the model law for groundwater
for instan e irri ation spe i and fai to address – the Model Groundwater (Sustainable
the na oidab e onne tions a on st different ses ana e ent i is r ia to ens re the
and between surface water and groundwater. Some of equitable and sustainable use and protection of
the most glaring gaps, such as a missing framework of groundwater.
principles governing the water sector, have been partly
ed b the pre e o rt and the hi h o rts his is » The adoption of a framework legislation
an appropriate start b t does not affe t the o ernan e based on the National Water Framework Bill,
of water on a daily basis at the local level, which is wi ens re that there is a set of o era
determined by the laws in place. Further, the lack of prin ip es for the entire water se tor re e tin
comprehensive legislation to address groundwater leads legal developments in recent decades. This
to a situation where the most important aspect is not will ensure that all actors in the sector have the
regulated by comprehensive regulation, contributing to same point of reference in their interventions.
the increasingly dire situation in many states.

END NOTES

1. ao o posite ater ana e ent nde

For example, Debi Pershad Singh v. Joynath Singh ri o n i pri for s rfa e water and Acton v Blundell (1843)
for ro ndwater
3. MC Mehta v. Kamal Nath (1997) 1 SCC 388 (Supreme Court of India, 13 December 1996).
4. NITI Aayog, Composite Water Management Index, 46.
ra t ationa ater ra ework t http www p annin o ission ni in abo t s o ittee wrk rp wr w wtr fra e pdf
6. he te t is a ai ab e at http owr o in sites defa t es ater ra ework pdf
7. ode i for the onser ation rote tion and e ation of ro ndwater in annin o ission Report of the Steering Committee on
Water Resources and Sanitation for Twelfth Five ear Plan ew e hi o ern ent of ndia
8. n ear ier dra t is a ai ab e at http owr o in sites defa t es ode i ro ndwater a pdf

48
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Safeguarding the Fragile Ecology of

the Himalayas
SHYAM SARAN

The states of India which share the Himalayas are also

its principal sentinels. Adaptation to climate change
must become an integral part of their development
The cities in the Himalayan mountainous zones are
strategies. The special vulnerabilities of this ecologically
increasing in size and number. They exhibit the same
fragile region need to be recognized, as much as its
degradation that plagues our cities in the plains:
rich natural resources in terms of forests, water wealth,
growing dumps of garbage and plastic, untreated
biodiversity and tourism potential. While a number
sewerage, chronic water shortages, unplanned urban
of long-term measures are included as part of the
growth, and heavy pollution from increasing vehicular
ationa tion an on i ate han e se era
traf his pheno enon wi on e a erbate the
key and urgent interventions are vital to prevent the
impact of climate change. The following immediate
further degradation of the Himalayan ecology and to
interventions by all the concerned states, supported by
preserve their life-sustaining role for millions of our
the Union government, are necessary:
citizens. This includes those residing not only in the
Himalayan states, but also in the entire Indo-Gangetic
Plain. It is the perennial rivers arising from the snow (i) o n planning and adoption of arc itectural
mountains that sustain livelihoods in the plains. The nor s
new government must prioritize the safeguarding of Given the ecological fragility of mountainous areas,
the fragile ecology of the Himalayas among the issues it is imperative to halt the unplanned growth of new
requiring urgent attention. settlements. Instead, there should be consolidation

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of existing urban settlements to be governed through (d) The compulsory use of solar water heaters,
land-use planning incorporated in a municipal master rainwater harvesting and appropriate sanitation
plan. These designated settlements would be provided facilities will be incorporated in the National
with all basic urban facilities, such as water supply, Building Code and municipal by-laws in the
waste disposal and power, before further civilian concerned states.
growth is permitted. State authorities will prescribe
regulations taking into account the particularities of (e) Construction activity will be prohibited in catchment
the local ecosystem, including seismic vulnerability, areas of cities, including along mountain lakes and
the need to respect local aesthetics and harmony other water bodies. Their feeder channels will also
with nature, and the optimum population load the be kept free of building activity.
settlement can sustain, given the availability of water
and power. Consolidation of urban settlements would In order to enable these decisions to be implemented
also preclude the need to construct a larger number of urgently, it is necessary to draw up, as soon as possible,
road links to a multiplicity of destinations, which would a comprehensive state-wide inventory of such water
cause further damage to the fragile ecology. resources and their channels, which could then be
declared fully protected zones.
here are i a a an towns in ded in the
Jawaharlal Nehru National Urban Renewal Mission
(ii) olid aste anage ent
(JNNURM), which could serve as models in this regard.
The following policy directives could be considered:
Further action points may include:
(a) The use of plastic bags should be banned in all
(a) Municipal by-laws to be amended, wherever hill towns and villages. This has been done with
required, to prohibit construction activity in areas commendable success in the states of Himachal
falling in hazard zones or across alignments of Pradesh and Sikkim.
natural springs, water sources and watersheds near
urban settlements. There will be strict enforcement b otab e o a water erti ed b a desi nated state
of these by-laws, including through imposition authority, may be provided through all commercial
of heavy penalties and compulsory demolition of outlets, such as local shops and restaurants. This
illegal structures. would discourage the use of bottled water, which
adds to toxic plastic litter in hill towns and along
(b) The National Building Code will be revised by trekking routes. This has been done successfully in
the central government, in consultation with the Leh and promotes local employment. More recently,
concerned state governments, to take into account the use of water ATMs to dispense clean drinking
the spe i re ire ents of rban sett e ents in water at affordab e rates is bein pop ari ed and
the Himalayan zone, including recommendations would be especially suitable in hill towns, pilgrim
on the use of local materials and local architectural centres and tourist locations.
practices.
(c) Each state must establish facilities for the
(c) The state governments concerned will set up state- composting of biodegradable household waste and
level urban arts councils, under relevant legislation, recycling, and reuse of other types of waste. This
to oversee the implementation of the National may be done through public-private partnership
Building Code for mountain areas and of respective wherever feasible. This will be followed by
master plans for designated urban settlements. amendments to municipal by-laws that make the
segregation of household waste mandatory, to be

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accompanied by a focused awareness and public listed through public consultation and consensus,
education campaign. and publicly announced. There may also be
restrictions on the months of the year when these
(d) An appropriate state tax or levy on all major sites would remain open, to allow recovery of the
o odities sin p asti and or non e o o d rin the off season or on the n bers
biodegradable packaging that enter hill towns of visitors. Uttarakhand, for instance, has recently
must be explored. This will create incentives to issued guidelines restricting the daily number of
an fa t rers of these oods to se de e op pi ri s to the an otri a ier a kh to
environmentally friendly packaging. In this context, plans to allow year-long access to
high-altitude pilgrimage sites at Badrinath and
Kedarnath should be abandoned.

The following measures to promote the healthy and (iii) The construction of roads should be prohibited
sustainable development of religious pilgrimage to be ond at east k fro prote ted pi ri
the many sacred and holy sites scattered all over the sites, thereby creating a much-needed ecological
Himalayas may be considered: and spirit a b ffer one ro nd these sites hese
areas, like national parks and sanctuaries, could be
(i) A comprehensive inventory of key pilgrimage sites in maintained as special areas with minimal human
each state would be drawn up, which would include interference, respecting the pristine nature of these
analyses of the ecological capacity of each site, based sites here there are e istin roads within the
on its location and fragility. The Union government k b ffer ehi ar traf sho d be a owed on
will assist in this exercise, which would be carried beyond this limit.
out by multidisciplinary teams including engineers,
scientists, ecologists, cultural anthropologists and (iv) Each designated pilgrimage site should have a
respected NGOs. de ared b ffer one where de e op ent a ti it
will be carefully regulated. Local communities
(ii) In advance of the results of the above exercise, a residing in or around these sites must be given a
p an st be de e oped to har oni e the in ow ro e in the ana e ent of the b ffer one and
of pilgrims with the local environment’s capacity en o ra ed to bene t fro pi ri a e a ti ities
to cater to the needs of pilgrims. These include the through providing various services to pilgrims. This
sources of several Himalayan rivers, sacred lakes has been tried out with some success in the Periyar
and forest groves. The selected sites would be Tiger Reserve in Kerala.

Policy Challenges 2019-2024 Centre for Policy Research

 Regulation and
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t a entr points to desi nated b ffer ones pi ri s (iv) Parking fees for private vehicles in hill markets
will be advised to take back all waste, in particular and hill towns need to be raised substantially
non-degradable items. Provision may be made to sell to dis o ra e s h traf thereb red in
them waste collection bags, which could be made by both congestion and pollution. Each hill town
local communities using local materials. Such waste will designate the central parts of the town as
may be collected and sorted out at special collection walking areas, with access provided by pollution-
points o tside the b ffer one for disposa fee a free electric or CNG buses.
be charged for the same.

Roads are the lifeline of this remote and

he eas res isted for re ation of pi ri traf in inaccessible region. However, the construction
the Himalayan zone would also apply, to a large extent, of roads must fully take into account the
to the promotion of ecologically sustainable tourism environmental fragility of the region. The
in the Himalayan region as a whole. The following concerned state governments must consider
interventions may also be considered: promulgating, as soon as possible, the following
guidelines for road construction in hill areas.
(i) Homestead tourism could be promoted in this area
and o er ia hote to ris of the three to e star (i) Environmental Impact Assessment should be
variety discouraged or prohibited. Local communities made mandatory for the construction of all state
will be encouraged and enabled to provide and national highways, and expressways of more
homestead-based tourist facilities, through a package than k en th in din in the e tension and
of incentives and capacity building. The successful widening of existing roads. This will not apply to
experience with homestead tourism in Ladakh is a inter-village roads.
good example.
(ii) Road construction must provide for the
(ii) Each state will set up a homestead tourism audit and treatment of hill slope instabilities resulting
erti ation a en to pro ote standardi ed and from road cutting, cross drainage works and
quality practices in designated tourism zones. These culverts, using bio-engineering and other
would include key environmental guidelines, such appropriate technologies. Cost estimates for road
as the use of solar energy, use of organic produce, construction in these areas should henceforth
recycling of waste, cleanliness and hygiene, courtesy, include estimates on this account.
knowledge of local culture and landscape, among
others. This will also help educate tourists about the (iii) Plans for road construction must provide for
importance of safeguarding the Himalayan ecology. disposal of debris from construction sites
at s itab e and identi ed o ations so as to
(iii) Recognizing the adverse impact on Himalayan avoid ecological damage and scarring of the
ecology of unrestrained expansion in vehicular landscape. Proposals for road construction must
traf ea h state sho d i pose an entr ta for henceforth include cost estimates in this regard.
vehicles entering important hill towns. A similar
tourism tax or trekking charge may be levied for all i ot i p ants st on be set p at east k
ecologically fragile zones. The proceeds from such away from settlements. These sites should have
taxes should be used for creating better facilities a ini open area of s etres and
(for example, clean toilets, tourist shelters) and for should be already devoid of vegetation.
bene tin o a o nities

2
 Regulation and
Resources

(v) All hill roads must provide adequate roadside (b) Central and state governments must together
drains and, wherever possible, be connected to organize an annual festival of the Himalayas
the natural drainage system of the area. to celebrate local cultures, which demonstrate
ways of sustainable living for resilient societies
(vi) Alignment of proposed roads should avoid fault in harmony with the pristine nature of the
zones and historically landslide-prone zones. Himalayas. This will also expose the rest of the
Where this may not be possible, adequate country to the importance of the Himalayas in
measures must be taken to minimize associated India’s national life.
risks, in consultation with experts.

The importance of the Himalayas as a natural There are grave concerns about the challenge the
storehouse and source of water must be country faces from the impact of climate change
acknowledged fully. The region is already under on the fragile and life-sustaining ecology of the
water stress, with the drying up or blockage of many Himalayas. This spectacular mountain chain is
water sources and natural springs. The following inextricably linked with India’s civilizational ethos
immediate actions are necessary: and the spiritual and cultural sensibility of our
people. It is necessary to initiate and develop a
(a) Each Himalayan state must initiate a state-wide truly national endeavour to safeguard the pristine
programme for rejuvenation of Himalayan ecology of the Himalayas. A coordinated approach
springs and protection of high-altitude lakes. between the Union and state governments in
the Himalayan states is imperative if we are to
(b) The government must provide legislative successfully meet this challenge. It is in this spirit
protection for mountain lakes, natural springs that the prime minister should convene a meeting
and key water sources, and prohibit construction of the chief ministers of the Himalayan states. The
activities along these water bodies. deliberations at the meeting, and the adoption
of ertain r ent and spe i ide ines and
(c) Relevant bodies should inventorize mountain de isions wo d be the rst step in for atin a
springs (active and dormant) and also carry out comprehensive and ambitious national mission for
detailed geological mapping to identify spring sustaining the Himalayan ecosystem. The prime
recharge zones. minister and the chief ministers should meet
annually to exchange views, share experiences,
re iew pro ress and e o e pra ti a and effe ti e
measures to make this national mission a success.
(a) Local festivals and fairs must be utilized to spread
environmental awareness, with the protection
of the environment being linked to local cultures
and festivals.

Policy Challenges 2019-2024 Centre for Policy Research 3

 Regulation and
Resources

Three Central Principles

ANANTH PADMANABHAN

e hno o has si ni ant dri en ndias rowth But with this exponential growth comes a set of policy
over the past decade. Be it the rise of well-funded and regulatory challenges. First, government policy and
startups and ‘unicorns’, the imaginative use of the regulatory framework need to be aligned to enable
technology for governance, or the emergence of the growth of a robust technological ecosystem, rather
India as a hub for R&D activity and a test bed for than impede it. The global competition for leadership
product innovation, technology is an important positions in emerging technology domains, such as
dri er for rowth in ndia report b the arti ia inte i en e drones ene editin and other
Startup India Initiative states: ‘The ecosystem areas, has become aggressive, with China becoming a
o prises of o er tart ps appro i ate lead contender. This global race demands impactful
in bation b siness a e eration pro ra s innovation policies that ease up creative and inventive
oba do esti r s s pportin ho e- activity, but in a responsible manner.
grown Startups, and a fast-growing community
of an e in estors and an e networks ndia e ond as ario s in idents post de onstrate
also boasts of being home to the 3rd largest uni- the rise of the digital has created new vulnerabilities
corn community, with over 16 high valued Startups and new types of harm to individual and group rights.
ha in raised o er bi ion f ndin with A digitally connected ecosystem is rife with security
o era a ation of o er bi ion 1 concerns, which are exacerbated when digital literacy

4
does not keep pace with digital use. Moreover, with including digital products and (ii) services; through
personal data becoming a critical tool for monetization electronic network’. Evidently, this is an extremely
and pro in the in enti e for both ind str a tors and wide de nition that brin s within re ator ontro a
the state to secure such data and respect individual wide range of activities from online retail to app-based
privacy is quite low. Both the Facebook–Cambridge health delivery. The document also attempts to outline
Analytica controversy and the unrestricted seeding po i for a host of different prob e s data infrastr -
of Aadhaar data in multiple databases to build a ture development; e-commerce marketplace regula-
de ree iew of iti ens indi ate distin ti e kinds of tions such as anti-counterfeiting, anti-piracy and for-
threats to individual and community rights. Therefore, eign direct investment; consumer protection; payment
respe t for pri a and indi id a o nit ri hts related issues; export promotion; and content liability
must be externally imposed, with regulations playing a exemption, among others. The concerns of social me-
part in this process. In short, developing an indigenous dia are far removed from fashion retail, and consumer
regulatory framework for new technologies is a woes pertainin to on ine tra e bookin differ ast
pressing need for India. Three central principles are from digital health solutions.4 The unfortunate result is
integral to this transition. a hea i di ted effort that portends re ator o er-
reach. To avoid this in the future, regulatory approach
st shi t o rse fro de idin in ad an e the ran e
Three Central Principles
of business activities that need regulation to identify-
he rst prin ip e for re ators and po i akers to in the spe i prob e s that proposed re ations
bear in mind is st address nder the rst prin ip e dis ssed abo e
. While this is not unique to the Inability to do so would only cause apprehension and
te hno o onte t there are a few spe i ities in this n ertaint for b sinesses and e tre e ineffe ti e
e d that ake this prin ip e worth e phasi in ten and diluted protection for citizens.
te hno o i a han e affe ts se tors that are nder an
existing regulatory apparatus, as seen in the case of The second principle is to
online cab aggregators or food delivery services. When . When regulating
regulators attempt to transplant this apparatus to a new unfamiliar territory, as is mostly the case with new
factual reality, a common mistake is to assume that reg- technologies, proclivities to entirely ban an activity
ulations must address the same set of problems as wit- or create restrictive pre-activity licensing models are
nessed in the earlier non-tech scenario. But in doing so, high. The bureaucratic instinct to play safe and apply a
the regulatory response addresses more problems than ‘precautionary principle’ comes at the cost of innovation
required, because technology-enabled models are likely and entrepreneurship. Moreover, because many new
to sort out at least some concerns.3 This response also technologies have cross-cutting impact, even these
presents the danger of under-inclusion as new challeng- decisions are taken in silos with one agency or regulator
es raised by technology-based models may be missed in taking a more pro-technology view while another acts
the process. Therefore, it is imperative to clearly identify more restrictively.
surviving and new problems caused by technology,
separate those that demand immediate regulatory The changing stance on data localization in India suf-
attention from others that may only require a wait-and- fers from failure to adopt such a risk-based approach.
see approach, and then develop targeted regulatory and At the heart of this debate is whether private entities
monitoring strategies for each of these concerns. must be compelled to store the data of Indian citizens
in servers located within India. A compelling rationale
or instan e the dra t e o er e po i re eased for offered in s pport of this eas re is that aw enfor e-
dis ssion in de nes e o er e as in din ent of ia s nd it dif t to in esti ate ri ina
‘buying, selling, marketing or distribution of (i) goods, misconduct when data resides in servers located else-

Policy Challenges 2019-2024 Centre for Policy Research

 Regulation and
Resources

where nother rationa e offered is the threat to nation- unpopular or undesirable views, and restrictive business
al security because of the possibility that foreign gov- requirements on private actors such as data localization.
ernments can spy on Indian citizens, taking advantage hese ontro s in reasin sti ed on the basis that
of the fact that their data resides in servers within their China has relied on similar interventions to successfully
jurisdictions. A third rationale argues that localization build its innovation ecosystem, carry extremely harmful
an he p ad an e a do esti arti ia inte i en e consequences for the future of democracy in India.
and data ecosystem, as done by China previously.6 But
amidst these multiple narratives, there is no clear study While many of governmental interventions do not
from the Government of India or any of the regulators o e fro a p a e of a a de intent it is i portant
about the extent of harm caused because of servers to be re inded o ten as a po it and espe ia so
residing outside India, the less restrictive measures that for policymakers and regulators, that India is built
could equally address any of these concerns. on a foundation of democratic values and crucial
constitutional safeguards. As our experience with
To address these concerns, the regulation of emerging e tion of the nfor ation e hno o t
technologies should be risk-based and responsive. – subsequently struck down by the Supreme Court
This new approach involves detecting undesirable in Shreya Singhal v. Union of India8 – demonstrates, the
or non-compliant behaviour, responding to that impetus to regulate online behaviour or technological
behaviour by developing tools and strategies, enforcing innovation should not emanate from a deep-seated
those tools and strategies on the ground, assessing desire to command and control. Such a desire is
their success or failure, and modifying approaches likely to result in unconstitutional behaviour and
accordingly.7 By valuing these processes, the overall impermissible inroads into the fundamental rights of
approach towards regulation changes in an organic citizens, including free speech and expression and the
manner. Risk assessment involves multi-stakeholder freedom to do business. While realities such as the
conversations and an engagement with data that goes virality of fake news in the age of social media raise
beyond projected fears and growth narratives. It entails serious concerns, responses cannot be built on the
creating a mechanism meant to gather the requisite assumption that a strong state (like China) can put
information, including engagement with technical a stop to these on erns oreo er o ten responses
bodies. Finally, it also brings about some consensus of this kind change the very dynamic of citizen-state
a on different re ator bodies re ardin the engagement in a democracy, leading to possible
kind of enquiry involved, if not the answers to such misuse and a surveillance architecture that evokes fear.
enquiry. A healthy debate on the risks surrounding
a new technology is essential for the creation of a
proportionate regulatory framework that balances
inno ation and prote tion effe ti e The regulatory interventions coinciding with India’s pe-
riod of technology-led growth have been a mixed bag.
The third principle is to Privacy may have found its ally in the Indian Supreme
. The rise of the Internet and digital Court, but the data protection bill has long been in the
technologies has resulted in a loss of traditional state works without much-needed push from the govern-
power and authority, leading to reassertion of control ment to formalize it as a legislation.9 Moreover, many
on the part of the bureaucracy. This reassertion now of the safeguards against misuse of Aadhaar data,
presents itself in the form of various regulatory controls emphasized by the Supreme Court when upholding the
such as demands to keep the privacy baseline low so validity of the Aadhaar Act, have been watered down
that the state can easily access private communications, through a recent ordinance that bypassed legislative
attempts to monitor online speech and to impose scrutiny. The data localization debates reveal uncoor-
criminal and civil liabilities upon those expressing dinated a tion between different power entres within
 Regulation and
Resources

the government, resulting in both business unpredict- both in a contained low-risk environment. ‘Experimental
ability and the fear of censorship through architectural regulation’ seeks to achieve this objective by providing
changes to the Internet. Recent proposals in the realms exceptions to, or exemptions from, existing regulation in
of e-commerce and intermediary liabilities do not a ring-fenced environment.14 In many countries, exper-
indicate well-thought-out measures of regulation that imental regulation has taken the form of sandboxing
factor in the capacity for enforcement, the impact on schemes. The UK Financial Conduct Authority’s Project
fundamental freedoms including speech and business Innovate is a live example of regulatory sandboxing for
autonomy, or the proportionality of state action.11 nan ia te hno o ies ther risdi tions s h as s-
tralia, Singapore, Switzerland, Hong Kong, Thailand, Abu
Yet, there have been some green shoots as well. The Dhabi and Malaysia have also been experimenting with
drone policy is one such, coming as it did from a place similar initiatives. India needs to create more compre-
of o tri ht ban on the te hno o in to a state of hensive thinking across multiple regulators about the
the-art reg-tech solutions like Digital Sky and Regula- ef a and oda ities of s h re ator sandbo es
tions in that ea e roo for f rther iterations
that match the pace of technological advances in this s an of the new te hno o ies annot be on ned in
sector. The Telecom Regulatory Authority of India’s clear terms to the regulatory jurisdiction of any one reg-
position on net neutrality has been largely well received ulator, India also needs to develop strategies for better
a ross the ran e of different stakeho ders n di ita inter-agency coordination. The data localization con-
payments, the government has displayed considera- tro ers re ea ed how different re ator and re o -
ble sensitivity towards various concerns ranging from mendatory bodies were at odds with each other on how
innovation in the sector to consumer dispute redressal to address this issue. Because data is a cross-cutting asset
mechanisms and competition concerns. In all these across multiple sectors, it is imperative to build better
cases, what comes through is some degree of mind- coordination and some uniformity in decision-making
fulness to the central principles outlined here. The on matters of data governance. In the US, the Obama
government should now build on these early successes administration had created an Emerging Technologies
to develop appropriate regulatory toolkits. Interagency Policy Coordination Committee to tackle the
problem of siloed decision-making. Israel has estab-
n re ator inter ention in the e d of te hno o lished an inter-agency team to coordinate regulation of
policy must begin with an insistence on a clear outlining virtual assets. India must learn from these exercises and
of the harms involved and a mapping of the various al- build a more coordinated regulatory strategy for data
ternate policy measures that could be potentially taken governance as well as other realms of new technology.
to address these harms. This is a good starting point for
citizens and other stakeholders to develop awareness of Finally, important regulatory interventions should
the challenges that the state wishes to address, and the also carry the mandatory requirement of a rights
t between these ha en es and the proposed re - impact assessment. The current relationship between
latory measures. The European Union has insisted on regulators and civil society is mostly one of direct
similar measures as part of its ‘Better Regulation’ princi- acrimony and distrust, especially when it comes to
ples.13 The responsibility cast on the regulator to explain regulating the Internet and digital technologies.
why it is regulating in the manner it proposes can make The only way to usher in a structured change is to
a si ni ant ontrib tion towards pro idin ertaint mandate a clear rights impact assessment, where the
accountability and curbs on arbitrary intervention. regulator must necessarily gauge the implications of
the proposed regulatory approach on fundamental and
Regulation of new technologies should also enable human rights. Many instances of excessive and harsh
experimentation with bespoke regulatory approaches regulations can be pre-empted at an early stage if this
and tools, as well as with innovative market solutions, mechanism is built into the regulatory process.

Policy Challenges 2019-2024 Centre for Policy Research

 Regulation and
Resources

END NOTES

1. tates tart p ankin ew e hi epart ent of nd stria o i ro otion https www start pindia o in ontent
da in est india o pendi tart p ndia ationa report ina ersion web pdf

Alvin Chang, ‘The Facebook and Cambridge Analytica Scandal, explained with a simple diagram’, Vox a https www o o po i
and po iti s fa ebook a brid e ana ti a tr p dia ra a hna haira et a s adhaar so tware ha ked
database o pro ised e perts on r Hu fington Post epte ber https www h f n tonpost in idai s aadhaar
so tware ha ked id database o pro ised e perts on r a

3. Ryan Hagemann, ‘A regulatory framework for emerging technologies’, 1776 ar h athttps www insi hts re ation e er in
te hno o o ern ent drones h per oop

4. See Ananth Padmanabhan and Arjun Sinha, ‘White Paper on Regulating E-Commerce in India: Need for a Principles-based Approach’ (New
e hi entre for o i esear h http www prindia or resear h reports white paper re atin e o er e india need prin ip es
based-approach.

Darcy Allen and Chris Berg, ‘Regulation and Technological Change’, in Australia’s Red Tape Crisis edited b ar en and hris er
eens and onnor o rt b ishin

6. o pare in this re ard the eser e ank of ndia ire ti e dated pri with the dra t ationa o er e o i

7. Julia Black and Robert Baldwin, ‘Really Responsive Risk-based Regulation’, Law & Policy

8.

9. S Puttaswamy v Union of India rabhi arwa ersona ata rote tion i on a ter new o ern ent takes o er Economic
Times an ar https e ono i ti es indiati es o te h internet persona data prote tion bi on a ter new o ern ent takes
o er arti eshow s

10. K.S. Puttaswamy v. Union of India aheer er hant pre e o rt ref ses to entertain ha en e to adhaar ordinan e te s
petitioners to approach High Court’, Medianama pri https www ediana a o s pre e o rt ref ses to entertain
ha en e to aadhaar ordinan e te s petitioners to approa h hi h o rt

11. ee ra t ationa o er e o i ndias ata for ndias e e op ent ew e hi epart ent of nd stria o i and ro otion
https dipp o in sites defa t es ra t ationa e o er e o i ebr ar pdf ra t nfor ation e hno o nter ediaries
ide ines end ent es ew e hi inistr of e troni s and nfor ation e hno o https eit o in
writereaddata es ra t nter ediar end ent pdf

i i iation e ire ents eries art ss e e ire ents for peration of i i e ote i oted ir ra t ste o
o ew e hi ire torate enera of i i iation http d a ni in ars d pdf

13. etter e ation oo bo ropean o ission http e e ropa e s art re ation ide ines do s br too bo en pdf

14. o a an hordas nno ation riend e ation he nset of e ation he nrise of nno ation Jurimetrics

15. Regulatory Sandbox: Making India a Global Fintech Hub e oitte a ai ab e at https www de oitte o ontent da e oitte in
o ents te hno o edia te e o ni ations in t t nte h re ator sandbo web pdf

8
 INCLUSIVE
CITIZENSHIP

India is no stranger to the challenges of inclusion, be it in the matters of religion, caste

or even labels of employment. However, in the recent years, its goals of pluralism and
tolerance have come under significant strain. In the process, the concept of Indian
citizenship is being challenged in unprecedented ways. In this section, CPR faculty
examine several aspects of Indian society where the question of inclusion has come to the
forefront or should be brought there. The section discusses how courts are struggling with
the challenge of reconciling tradition with citizenship, how the constitution is grappling
with protecting the Scheduled Castes and Scheduled Tribes and how sanitation workers
being denied the right to safe and dignified work.

Policy Challenges 2019-2024 Centre for Policy Research 9

 Inclusive
Citizenship

Courts, Tradition and Citizenship

SHYLASHRI SHANKAR

s i wi es ha e na rid of the a o es sword (ii) to what extent can a pluralist democratic polity
of triple talaq, homosexual men and lesbian women reconcile tradition and religion with the concept
are free to express their sexuality without fearing of equality without losing the diversity; and (iii)
arrest, and adulterers can make the choice to commit whether the state ought to play the primary role in
such acts without being penalized by the Indian ediatin these on i ts and if so whi h instit tion
state. These judgments of India’s Supreme Court, of the state should take on the responsibility.
particularly in the arena of religious freedom, have
e oked appro a fro ibera s who a it pro ressi e I will discuss these issues in the context of the
an er a on those who a e tradition and re i io s Sabarimala temple judgment and argue that the
o and ents and dis iet a on those who institutions of the state ought to be the last resort for
wonder if ba an e between on i tin freedo s has s h iss es not the rst one if we want to in ate
indeed been achieved, and whether courts ought to the values of engaged citizenship. The task of the
be in this fray. government and the courts is to create a safe space
where citizens can engage in these debates.
The issues involved are threefold: (i) how can
traditional values cohere with the concept of On 3 October 2018, a 4-1 majority of a Constitution
citizenship (this question concerns the role of bench of India’s Supreme Court held that the
tradition in creating a community, and the extent Sabarimala temple’s practice of barring the entry
to which that sense of belonging to a group or a of women between the ages of 10 and 50 was
community is an important feature of our citizenship); unconstitutional. The temple authorities had

0
 sti ed the e sion of a s b set of wo en fro the Fundamental Rights, which included the right of
the temple as an ancient tradition. They pointed every individual, religious denomination, or sect, to
to Section 3(b) of the 1965 Kerala Hindu Places of practise their faith and belief in accordance with the
Worship (Authorisation of Entry Act), which allows tenets of their religion, irrespective of whether the
the exclusion of ‘women at such time during which pra ti e is rationa or o i a
they are not by custom and usage allowed to enter
a p a e of p b i worship en e said the te p e The Sabarimala case highlights an area where judges
authority, they had the right to bar the entry of women ha e o ten disa reed with one another his is on
of menstruating age into the Ayyappan temple in the contours of the balance between the principles
Sabarimala. Opponents of the practice highlighted of equality and non-discrimination on the one
other constitutional provisions such as Article 25(1), hand, and protecting the freedom of faith, belief
(freedom of worship), Article 26 (freedom of religious and worship guaranteed by Article 25 and Article
denominations to regulate their own practices), and 26, on the other. The judicial disquiet pertained to
Articles 14 and 15(1) (equality and non-discrimination), whether and how the court ought to deal with group-
and Article 17 (banning untouchability). reated traditions that on i ted with the prin ip e
of equal access. What the judges were asking in
The majority judgment said women as individuals the Sabarimala judgment was this: which agency
had the right to freedom of worship (Article 25) and – individual citizens, the state, political parties and
barring their entry contravened that right. It laid civil society organizations – should be the channel
down that the Sabarimala custom did not constitute for creating the textured citizenship that promotes
an essential practice of religion, and even if it openness, tolerance and diversity?
was (as Justice Khanwilkar said), it did not matter
because Sabarimala was not a separate religious The Sabarimala pilgrimage is like a haj for devout
denomination from Hinduism. Hindu men who conform to strict rules of behaviour
fastin for da s s eepin on the oor wearin
The sole dissent by Justice Indu Malhotra disagreed a mala and black clothes, and eschewing material
on the following grounds: that the equality provision temptations) prior to their trek to the temple of Lord
(Article 14) did not override the right to religious Ayyappan, a celibate deity. While Hobsbawm is right
freedom (Article 25); and that ‘constitutional morality in saying that traditions are invented, if tradition
in a secular polity would imply the harmonisation of creates a sense of belonging, if to belong and be part

Policy Challenges 2019-2024 Centre for Policy Research

 Inclusive
Citizenship

of a group also means to exclude other groups, and if Union of India to undertake that process taking into
in our daily lives we purposefully elect to undertake consideration the advances in Muslim personal law.
particular activities that create such communities Their stopgap arrangement ‘till such time as legisla-
(and exclude others from that community), then tion in the atter is onsidered was in n tin s-
who should map these contours? lim husbands, from pronouncing “talaq-e-biddat” as
a eans for se erin their atri onia re ationship
The majority and minority opinions in the Sabarimala
ase a e different answers and both sed the These issues do not have easy resolutions
on ept of onstit tiona ora it to ake their particularly in the 21st century where technology
argument. Justice Chandrachud (concurring with and higher literacy have created pathways for ideas
the majority ruling) linked the exclusion of women to travel globally, and where citizenship is being
from the pilgrimage to the larger issue of patriarchy exercised in more vocal ways. Belonging, as British
as a social institution that needed to be transformed so io o ists ike a a is and ike a a e
so that wo en ike a its and here he inked the point out, is not an essential or purely discursive
issue to untouchability and the Indian Constitution’s concept, but is socially constructed, embedded and
mandate to deliver social justice) gained access to processual; people reflexively assess whether they
public spaces such as temples. Justice Indu Malhotra feel comfortable in a place in relation to their life
(dissent) said constitutional morality in a secular and to their positions and roles. When you embark
polity meant harmonizing other rights with the on a haj or a pilgrimage (for example, to Mecca or
fundamental right to practise religion. to Sabarimala), you are also choosing to be part of a
community of believers of that tradition.
The recent triple talaq judgment too highlights
the dissension among judges in this sphere. The Traditions create social cohesion. Unlike convention,
majority ruling said the question to be considered which displays a habit or routine, tradition has a
was whether triple talaq was legal: ‘Whether what is si ni ant rit a or s bo i f n tion radition
Quranically wrong can be legally right is the issue to imposes invariance: drums cannot replace the
be considered in this case … What is held to be bad bugles that signal the end of the Beating the Retreat
in the Holy Quran cannot be good in Shariat and, ceremony. In 1983, British historians Eric Hobsbawm
in that sense, what is bad in theology is bad in law and Terence Ranger edited a volume entitled The
as we he based their d ent on the t Invention of Tradition where the contributors
whose purpose ‘was to declare Shariat as the rule of explored examples of invented traditions in
decision and to discontinue anti-Shariat practices Scotland and colonial Africa, and the pageantry
with respect to subjects enumerated in Section 2 of monarchy in Great Britain, Victorian India and
whi h in de ta a in e no pra ti e a ainst the 20th century Europe. Tradition is invented for three
tenets of Quran was permissible under this Act, types of reasons, they say: (a) those establishing or
and triple talaq was antithetical to the Quran, the symbolizing social cohesion of groups; (b) those
practice of such a mode was bad in law as well, they establishing or legitimizing institutions (pomp and
said. They ended with the view that ‘it is not for the pageantry); and (c) those whose main purpose was
o rts to dire t for an e is ation socialization, the inculcation of beliefs, value systems
and conventions of behaviour. If Hobsbawm and
The minority opinion (which included the Chief Jus- Ranger are right that tradition is invented to create
tice) implied that constitutional protection was given social cohesion, then changing tradition, as done in
to triple talaq, and therefore it was up to the Parlia- the Sabarimala judgment, comes at a high price.
ment, not the courts, to pass that law. It directed the

2 Courts, Tradition and Citizenship

 Inclusive
Citizenship

One may argue that the Sabarimala judgment will of the lowest castes into temples and abolishing
trigger a new and more inclusive tradition and create nto habi it he f ent of inter re i io s
a larger community. However, it is the court, an bonhomie called for caution in dealing with the large
institution of the state, which has created this new si inorit who re ained a ter the artition
tradition. What is the problem with that, you may ask. and took the form of non-intervention in the religious
As philosopher Roger Scruton says, practices of Muslims and Christians.
b iti enship ean a spe i for of o na
life, which is active, not passive, towards the Analysis of case law reveals that the concept of
business of government. The citizen participates essentia pra ti es rops p in the o rt on iss es
in government and does not just submit to it. where the state has to regulate the secular functions
Although citizens recognize natural law as a of a religious group (applies to all religions), or when
moral limit, they accept that they make laws the state has to undertake social reform among
for themselves. They are not just subjects: they Hindus, or when a religious practice is at odds with
appoint the sovereign power and are in a sense a constitutional directive to the state. Essential
parts of that sovereign power, bound to it by a practices, in relation to Hindu custom such as
quasi-contract which is also an existential tie. untouchability and temple entry that contravened
The arrangement is not necessarily democratic, a onstit tiona o and were treated different
but is rather founded on a relation of mutual (that is, the state’s interventions were allowed)
accountability. by the court compared with practices (such as
excommunication among Bohras) that did not
Mutual accountability implies that the state – that contravene a constitutional command.
is, the legislature, executive and the judiciary –
must respect a citizen’s need and ability to create a The wording of the majority opinions in these recent
patchwork of belonging and unbelonging, as long as judgments on decriminalizing homosexuality and
these do not unduly harm the rights of other citizens. adultery, ending the practice of divorce by triple talaq
There lies the problem for India’s courts. among Muslims, and ending gender discrimination
suggests that these judges are trying to create a
The constitutional diktat to the Indian state to create just and equal order for individual citizens (liberty,
the conditions for social justice has meant that the equality and fraternity) by removing the archaic
judiciary has become involved in assessing whether practices of discrimination in group activities. The
a religious practice coheres with or contradicts wording of the minority opinions suggests that
social justice. The concept of ‘essential practices these judges want the political arm of the state (the
of re i ion was oined be a se the o rt had to legislature and executive) to create such an order.
make a distinction between matters of religion
and matters of secular activity amenable to state It does not help that in the past four decades, there
regulation. Here, we see the practical implications has been a growing attempt by politicians to send
of the twin constitutional injunctions on the Indian contentious political issues to the courts so that
state: to address the historical inequities meted out the the se es do not s ffer the ba k ash d rin
to Scheduled Castes and Scheduled Tribes while elections. Fragmented vote banks, unstable coalitions
pursuing a vision of inter-religious bonhomie through and fractured legislatures are cited as possible reasons
the guarantee of religious freedom and secularism. for such transference. The judiciary, on its part, is
Social justice meant that the state had to answer aware that by choosing to decide on such questions,
legal challenges to its intervention in reforming the it risks non-implementation of its judgment, and a
religious practices of Hindus such as allowing entry consequent decrease of its prestige and authority.

Policy Challenges 2019-2024 Centre for Policy Research 3

Recently, the Bombay High Court said women could . First, it has to create enabling conditions for the
not be barred from entering the sanctum sanctorum concerned groups to challenge and deliberate with
of a Sani temple, a practice that has a 100-year-old one another in safe spaces (virtually and in person)
footprint his was a ter wo en a ti ists tried so that they use the representative and judicial
to enter the core shrine area and were stopped, instit tions of the state as the ast and not the rst
and two activists approached the court through resort. Political representatives, that is, lawmakers,
public interest litigation. Another Sani Shinganapur sho d enter the pi t re on a ter a e e of
temple, this one in Ahmednagar, had to allow consensus necessary to create a stable solution is
women to enter the temple premises in 2011 – achieved. The process of active citizenship implies
women were barred before that from even stepping that the principles for a just order are forged by
into the te p e pre ises a ter rationa ists arried each citizen through a process of contention and
out a mass awareness campaign. It is this kind of engagement within a safe space provided by the
dialogue and compromise that I am alluding to – government.
one where state institutions play little or no role,
and if the do it is the ast resort not the rst one 2 Second, when state institutions are tasked with
Otherwise, we risk creating an anodyne and sterile resolving such contention, the implementation
iti enship bere t of de iberate and arti ated of orders (for example, a judgment) ought to be
choices to belong or not belong to a tradition, and carried out promptly even when the decision does
also of the ability to transform social practices in not resonate with the ruling party’s stance.
association or in dialogue with fellow citizens,
without necessarily involving the state. 3 hird and ost dif t for the new o ern ent
is how it plans to restrain its party members and
As deliberative spaces increase in an age of high other politicians from transferring contentious
connectivity and social networks involving a political questions to courts, and also to impose
more literate and connected citizenry, the next self-restraint in pushing through constitutional
government faces three challenges in this space. amendments by citing election manifestos.

4 Courts, Tradition and Citizenship

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Citizenship

The Social Justice Project

A conspicuous feature of Indian society is the caste the highest in the caste system are as eligible for the
system, which is birth-based and hierarchical. In that state’s patronage as the lowest.
system, Brahmins (priests), Kshatriyas (warriors) and
aish as tradespeop e are de ned as the twi e Parts III and Part XVI are the heart and soul of the
born and hence upper castes, while the Shudras Constitution. While Part III grants to all Indians the
(artisans) are the servile caste whose sole purpose fundamental rights akin to any other democracy, Part
is to ser e the top three astes he a its for er XVI addresses the special needs of certain sections
nto hab es are o tside the aste s ste hen e – the Scheduled Castes and Scheduled Tribes (SC/
the oniker an ha as the th aste or the STs) and others – who were not in a position to access
o t astes a ro p seen as not e en t to be part of their rights primarily due to the caste discrimination
the fourth, servile group, the Shudras. However, recent the s ffer fro his se tion fro rti es to
policy innovations aimed at bringing about inclusive 342) is based on the assumption that while the SC/
growth have sought to blur these distinctions in such STs are the victims of caste, there might be other
a way as to turn the social justice project under the so ia and ed ationa ba kward asses e t o t
Constitution of India on its head. It is one thing to of development and in need of the state’s help. As
assert that every group that needs the state’s support the founding fathers were not sure of the identity of
st et it b t it is a to ether different to sa that this latter group, they stipulated the establishment
 Inclusive
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of a o ission nder rti e to nd o t who One, under Sub-clause 5(b), all three commissions
these classes were and recommend measures to are en oined to in ire into spe i o p aints with
help them; this group came to be known as the respe t to the depri ation of ri hts and safe ards
Other Backward Classes (OBCs). While the exercise of their respective wards. It is incorrect to assume
to identify those in need of help has proven to be a that OBCs are similar to the SC/STs to such an extent
never-ending process, it seems to have now entered that they need similar safeguards. A logical corollary
a phase of chaos. is that an i de ned ri ht is bo nd to ki k off a new
breed of litigation. The aim of the Constitution is
Of late, two amendments to the Constitution (123rd to pull the SC/STs out of their low condition but the
and th a end ents ha e so ht to effe t so ia new NCBC is by default designed to push OBCs into
engineering of a problematic kind. While the 123rd’s a condition similar to the SC/STs. In other words, the
i port is that h dras s are as bad off as refor wi end p on ertin s into s
a its and triba s s the th e ates the
upper castes – Economically Backward Classes (EBCs) Two, under Clause 8, all three commissions are given
– with Shudras. The blurring of well-recognized the powers of a i i o rt tr in a s it he ori ina
social cleavages appears to extend the logic that provision in the case of SC/STs is due to the fact that
acknowledging social divisions like caste accentuates these two groups are systematically subjected to
those divisions. These two legislative innovations discrimination, intimidation and violence. Moreover,
coupled with two other related developments, in an instan es of atro ities a ainst these two
discussed below, have turned the social justice project groups, the accused happen to be the OBCs. Therefore,
under the Constitution on its head. next time an instance of atrocity is reported wherein
the OBCs are the alleged perpetrators, the NCSC or
wi nd itse f pitted a ainst
Recent Developments
Quota for EBCs
NCBC
Through the 124th amendment the government
Through the 123rd amendment the government has
introduced 10% quota in educational institutions
set up the National Commission for the Backward
and central government jobs for EBCs. Phase 1 of
Classes (NCBC). Its earlier avatar was a mere entity
our quota system sought to help the victims of caste
created by an Act of Parliament; the new version
(the SC/STs), and phase 2 focused on those who are
is onstit tiona he a end ent inserted a new
ere e t behind in the aste s ste s he
Article, 338(B), which falls in Part XVI. The new
rrent phase is eared to bene t those who are at
Article is actually a replica of Article 338 under which
the top of the caste heap, the upper castes, who are
the National Commission for the SC/STs (NCSCST)
not the victims of caste system but its perpetrators.
was set up. In the early 2000s, the government
It cannot be anybody’s case that the poor among the
bifurcated the NCSCST into two: one for the SCs
so-called upper castes do not deserve state patronage.
under the original Article 338 and the other, Article
Under Article 340, the founding fathers did envisage
338A which is a replica of the former. Given the
a mechanism to help the needy (‘socially and
almost similar condition of these two groups and
ed ationa ba kward asses b t what the had in
the felt need for an exclusive commission for the STs,
ind was a o ation of nan ia reso r es the rants
the bif r ation was a p sti ed owe er the
that sho d be ade for the p rpose not settin
same treatment for the NCBC amounts to clubbing
aside otas tho h the ner point is a ost a se
OBCs with the SC/STs. There are two dangers implicit
the issue deserves attention as it has the potential to
in the move.
make the whole social justice project unworkable.

In Need of Structural Repairs: The Social Justice Project

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Verdict on the SC/ST Act Broad Policy Direction

Another fairly recent related development is the The government must revisit Part XVI of the Con-
Supreme Court’s verdict in March 2018 wherein it stitution with the aim of according its social justice
so ht to di te the tro ities re ention t project the dignity it deserves. Moreover, the recent
1989. The Supreme Court reasoned that the misuse toxic accretions would, if not removed, erode the
of the Act was so rampant that it needed to provide whole mechanism. For example, in the context of
safeguards for those falsely accused under the Act. reservations in educational institutions and quotas in
The ensuing controversy hinged on two opposite government jobs, the OBCs are equated with the SC/
ar ents one ho ds that the atro ities s ffered b STs. It will be a small step to extend the logic to polit-
the SC/STs still remain widespread, not warranting ical representation for the OBCs in the Lok Sabha and
any dilution of the Act, and the other view holds that state assemblies. Therefore, the government must:
is se of the t is s f ient widespread the ape
court’s position in the judgment. So far, only opinions • Rephrase Article 338B through an amendment so
ha e been in ba k and forth b t the nation has no as to rede ne the ai s and ob e ti es of the
idea of the facts. Therefore, even though the matter is OBCs are truly in need of state support in terms of
sub judice, there is an urgent need to revisit Part XVI, improving their educational and social standing,
and the laws and institutions that emanated from it, b t e atin the with the a its wi p sh the
along with collecting instances of use and misuse. arti ia into the ranks of the atter t wi not ser e
the nation to in rease the n ber of a its
Money without Motive
Separate budgetary allocations for the betterment of • Re-categorize OBCs and EBCs as a single group
s are assi ed nder two heads the hed ed under Article 340, since the EBCs among the upper
Caste Sub-Plan and the Tribal Sub-Plan. The logic astes are ed ationa ba kward asses and the
behind these plans is that the government must OBCs are both ‘socially and educationally backward
allocate resources for the welfare of these two groups asses wa to so e the aste prob e is to p t
and the percentage of those allocations must be in place policies that will eventually reduce the
in proportion to their population in the country. number(s) of its victims. And clubbing OBCs and
However, the allocations are split vertically and s wi be the rst step in that endea o r
horizontally, resulting in the extraordinary situation
of some departments receiving large amounts • Appoint a statutory study group to examine the
(sometimes hundreds of crores) under these plans working of the 1989 SC/ST Atrocities Act to assess the
with no or ins f ient ide ines on how to spend extent of the Act’s misuse and whether the misuse
the money. In the past, the Planning Commission was warrants remedial measures. Every Act/legislation
the nodal agency for this head but it didn’t do a great is liable to be misused, but we must ascertain
job. Although the NITI Ayog is now the nodal agency, the degree of that misuse to introduce remedial
it has expressed its inability to discharge this duty. measures to protect the innocent.
Therefore, no agency or ministry is bothered about a
large chunk of budgeted amount (in the range of one- • Create a nodal agency to determine how the
forth of the national budget). For example, this year thousands of crores of rupees allocated under the
a few s ienti and a ri t ra resear h instit tions SCSP and TSP are to be spent. This is an extremely
suddenly woke up less than a month before the sensitive area as it has the potential to create
os re of nan ia ear to the fa t that the needed disaffe tion a ainst e p o ees who are
to spend money on the welfare of SC/STs. eant to be the bene iaries of these s he es

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India’s Foremost Sanitation Challenge

India’s continued focus on sanitation has resulted in and septic tanks.2 Moreover, much of this sanitation
increasing toilet coverage and disposal infrastructure: work is performed in degrading and demeaning
the Swachh Bharat Mission has reported an increase conditions, and for low wages and in insecure
in toilet coverage from less than 40% to above 98% in workin onditions hese poor onditions re e t the
the period from 2014 to 2019, while the total capacity ontin ed indifferen e of the so iet at ar e and an
of disposal infrastructure has increased from more incomplete understanding on the policy side of what
than to 1
his effort the sanitation challenge consists of. Crucially, workers
is, however, undermined by the continued persistence (and the families of sanitation workers) remain
of manual scavenging and unsafe sanitation work. trapped in circumstances in which they have to keep
t is esti ated that e i ion peop e in ndia are performing unsafe and humiliating sanitation work,
engaged in sanitation work (that is, work relating in spite of the heavy price they have to pay for it. This
to the cleaning and management of toilets and is India’s foremost sanitation challenge; addressing
human excreta), of which two million are likely to be this issue in a comprehensive manner should be the
en a ed in hi h risk work s h as eanin sewers cornerstone of India’s next sanitation policy.

8
 he ter an a s a en in in ndian aw refers High-risk sanitation work is also increasingly
to the practice of manually carrying human informalized. From recent reports of sanitation
excreta. In the historical context, this refers to the worker deaths, and our engagements with
practice of removing excreta from dry latrines sanitation worker networks, we learn that the
and railway lines – practices that were prohibited de eased workers o ten had no instit tiona
by the Employment of Manual Scavengers and relationship with the owner of the infrastructure,
onstr tion of r atrines rohibition t but were hired either by contractors responsible
1993, and sought to be eliminated through for infrastructure maintenance or on-the-spot for a
o ern ent in est ents in po r sh toi ets spe i ob 3
and rehabilitation schemes. The proliferation
of modern sanitation technologies brought, in
Incomplete Policy and Strategy Thus Far
addition, new forms of manual scavenging work,
which include manual and unsafe cleaning of India’s policy attention to sanitation workers is
drains, sewer lines, septic tanks and latrine pits. A heavily oriented towards rehabilitation of manual
new law in 2013 – the Prohibition of Employment scavengers (by training them for alternative
as Manual Scavengers and Their Rehabilitation income generation), and some limited forms of
Act, 2013 – covered this work too, and mandated compensation and welfare support (as mandated
a list of safety equipment to be provided in cases by the Supreme Court). And yet, the schemes for
where manual entry into underground sewerage compensation and welfare have been severely
infrastructure was unavoidable. Needless to say, underperforming.4 he ndin s of an on oin st d
both old and new forms of manual scavenging are that families of sanitation workers are unable
work persist. In this note, we consider the issues to et eanin f trainin or nan ia s pport
and challenges of sanitation workers who deal for alternative employment from government
with human excreta, and in the maintenance and programmes designed for this purpose.
management of sanitation infrastructure.
And yet, how does this square up with the high
Sanitation workers bear the multiple stigma levels of investment in sanitation? India’s faulty
of offensi e and n ean work ow wa es and metrics count toilets constructed, sewage pipelines
a highly dangerous form of employment that laid, and treatment facilities constructed, but pay
results in long-term health impairment and an little attention to safety standards in design and
unacceptably high chance of accidental death. maintenance. We have also ignored the service
Sanitation work in India has a long association networks and workers who are expected to maintain
with caste-based oppression. Almost all the this infrastructure. As a result, deaths of sanitation
sanitation workers who deal with human excreta workers are being reported even from new and
are fro ertain a it astes and o nities sophisticated treatment infrastructure – whether
Such work can also be extremely dangerous: government-owned sewage networks, Sewage
excreta contained in enclosed spaces create a mix Treatment Plants, or on-site facilities owned by
of poisonous gases (methane, hydrogen sulphide, high-end hotels, malls and residential societies.
carbon monoxide, sulphur dioxide, ammonia, On the other hand, more than half of India’s toilet
nitrogen dioxide and traces of carbon monoxide) users rely on septic tanks and leach pits for their
that can result in loss of consciousness and death. waste disposal,5 but little attention is paid to safe
Safai Karamchari Andolan has recorded close design and maintenance norms for these tanks and
to 2000 sanitation worker deaths, but experts pits. There is, for example, no technical reason why
be ie e that a t a res o d be e en hi her if cleaning of household containment tanks should
a complete count was possible. require manual entry – as the de-sludging of tanks

Policy Challenges 2019-2024 Centre for Policy Research 9

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Citizenship

is a relatively simple mechanical operation – and On the legal side too, municipal and environmental
yet, deaths of workers during septic tank cleaning laws cover the sanitation and wastewater disposal
is reported with sickening regularity. It is even more – making no reference to sanitation work – whereas
ironic that many of these deaths are reported from a different e a fra ework app ies to an a
India’s highly developed and urbanized towns and scavenging. These latter laws address only the
cities, where safer waste management practices e p o er of an a s a en ers b t not the owner
could have easily been put in place. of unsafe infrastructure (except to the extent that
they cover dry latrines). Moreover, in actual practice
India’s policy framework supports our selective the laws become relevant only in case of the death
inattention to sanitation work. While sanitation of manual scavengers, and even then we do not
programmes and policy consider the question of know of a case of successful criminal prosecution
sanitation work as an a ter tho ht if at a iss es under these laws. At present, no legal responsibility
of safet and di nit of the workers are e t to a rests on owners of infrastructure – whether public
different inistr of the p b i in est ents agencies or private owners of septic tanks, pits
and policy frameworks for sanitation are made and on-site treatment facilities – to ensure safe
by urban and rural development ministries, who design and operations of their infrastructure. The
keep no track of the impact these investments and legal responsibility for deaths, when they occur, is
policies have on sanitation workers. The Ministry also easily passed on to intermediary contractors,
of Social Justice and Empowerment, which has no especially when the owner is a public agency,
hand in planning and investments of sanitation corporate body or residential society.
infrastructure, is responsible for counting and
identifying manual scavengers; it is allocated funds
to provide for a few compensation, rehabilitation
and welfare measures. We suggest a new paradigm in which safe and
di ni ed sanitation work is p a ed at the front and
On the institutional side, there is a confusing mix of made the organizing principle around which the
public and private roles: public authorities consider de nition of safe sanitation is rearti ated for
themselves responsible only for drainage and future sanitation programmes. We also need to
sewerage, leaving residents who use septic tanks recognize that undoing several centuries of caste
and leach pits much to their own devices. And on oppression and decades of policy neglect is not
their part, drains and sewers owned by the public going to be an entirely technocratic exercise, but
a thorities are o ten of poor te hni a spe i ation will require an actionable commitment from the
Mixing of storm water, sewage, debris, silt and solid government to eliminate all forms of demeaning
waste further compromises the functioning of these and unsafe sanitation work.
drains and sewers, resulting in frequent blockages
that require human intervention. On-site sanitation Supporting the families of sanitation workers
users meanwhile understand little of their on-site in transitioning out of manual scavenging and
infrastructure, and usually rely on low-end informal unsafe sanitation work is critical to this promise.
cleaning services. This inattention is no doubt not Community activists stress that it is crucial for
accidental, but made possible by our collective families to move out of sanitation work altogether,
social disregard for the lives of sanitation workers. in order to escape the social stigma and caste

0
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identi ation that o es with sanitation work or without focus on appropriate design features for
this it is not eno h to offer s a oans to ake its safe operation and keeping local conditions in
sanitation workers self-employed entrepreneurs, as mind. The local government (or other single-point
current government programmes do, but to make agency) should also be responsible for ensuring
comprehensive provisions for income security, dignity that organized and mechanized sanitation services
and education. Providing salaried employment or are available to replace low-grade and risky
income-generating assets could help replace the services in which the safety risk is borne by the
lost income from manual scavenging work far more workers themselves.
effe ti e than se f e p o ent s he es espe ia
considering that sanitation workers tend to have no We also need clear legal recognition that
prior entrepreneurial exposure or business networks. the owners of infrastructure – whether local
government, housing communities or individual
The problem of sanitation work itself is no less residents – are responsible for ensuring that their
important, and for that, the voice of sanitation infrastructure can be cleaned and maintained
workers is crucial. Sanitation workers associations without putting workers into direct contact with
could be organized at city and state levels, and excreta, or in unsafe conditions. This is especially
s h sanitation workers ro ps st ha e a ro e important considering India’s heavy reliance on
in the formulation of sanitation policy, and in the on-site sanitation infrastructure, septic tanks and
planning and design of infrastructure. Sanitation leach pits, but also for on-site treatment facilities
workers groups also need to be involved in the for real estate developments.
implementation of welfare schemes, and in
ne otiatin fair and di ni ed workin onditions National and state governments need to be take
applicable to both public and private employers. har e of the po i shi t to ens re that o a
governments given the responsibility for delivery
On the part of the government, the eradication of infrastructure and services are also made legally
of manual scavenging should be made a primary and institutionally responsible for ensuring the
responsibility of local governments. They should complete elimination of manual scavenging
be held responsible for: (i) ensuring the complete and unsafe sanitation work. National and state
elimination of all forms of manual scavenging and governments also need to set up technical
unsafe sanitation work within their jurisdictional limits, standards for safety in each element of sanitation
and (ii) providing jobs, income support and welfare infrastructure. In addition, they should see that
measures to help families break out of the cycle of o a o ern ents ha e the staff apa it and
manual scavenging and unsafe sanitation work. funds to bring about this change. Finally, they
should announce clear safety related targets
o re e t this shi t in paradi in e a ter s we and progressively monitor the transformation
suggest that the same agency (ideally the local of the sanitation infrastructure and services to
government) that is responsible for ensuring the incorporate safety elements in partnership with
elimination of manual scavenging and unsafe representati es fro sanitation workers ro ps
sanitation work is also funded to design and build its and associations.
sanitation infrastructure. Much of this infrastructure
is rrent bein desi ned nan ed and b i t

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END NOTES

1. CPCB, 2017.
2. a ber na sis http sanitationworkers or wp ontent p oads hase nderstandin the rob e art pdf
3. There is no systematic evidence of the nature of employment of sanitation workers. In recent sanitation worker deaths in a sewage pumping
station in ahan irp ri owned b the e hi a oard in a pri ate ated o nit in oti a ar and in a a i anta hote near han
arket a in e hi the workers were en a ed on a onth basis b ontra tors responsib e for aintainin the infrastr t re n the other
hand workers who died eanin sanitation infrastr t re in a pat a ar abri and ok a ak ospita were free an e workers who were
hired for a ob fee for a spe i assi n ent o r es tip e newspaper reports inter iews
4. o ntabi it nitiati e d et riefs e f p o ent he e for ehabi itation of an a a en ers ew e hi
entre for o i esear h https a o ntabi it india in sites defa t es pdf es e f po ent he e for
ehabi itation of an a a en ers pdf
5. Toilet waste could be disposed through a sewer network of closed, specially designed pipes that carry toilet waste along with other
wastewater to treatment facilities. It could also be managed through on-site solutions – by evacuating it from household septic tanks or
leach pits from time to time (de-sludging operations) and carrying it in specially designed trucks to treatment facilities; or using various
te hno o ies that pro ide on site treat ent t is a so o ten hand ed s bopti a thro h open drains and water hanne s or thro h a i
of sewage pipes, open drains and on-site containment systems.

2
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