The Other India
- After 7 per cent plus growth in the mid-’90s, we seem to be stuck with 6 per cent.
- The rich have gone richer and it seems the poor have too. But regional inequalities have
sharpened.
- Unless power, water, roads and other infrastructure improves, reforms may never touch
most Indians.
Now : MTV and FTV have survived the culture police and prospered.
Then : The best that monopolistic Doordarshan offered was Chitrahaar.
Now : WAP-enabled cellphones have brought the world to our fingertips.
Then : Pre-Net, the telegram was the fastest way to get across.
* * *
Competition Success
- The price of a Maruti 800 reflects the success of the markets. Salaries quadrupled, yet
the DX model
only costs twice its ’91 level.
- The price line has held firm although the state has lost the battle for the fisc.
- India wants to raise FDI inflow by five times to $10 billion. It will still be far
behind China’s $45 billion.
Now : Slick, cheap Chinese gizmos vie for a slice of the purse.
Then : C-grade, cheap local products swamped the bazaars.
* * *
External Account Success
- Forex Reserves $1 bn in ’91 $40 bn in ’01
- Short-Term Debt (% Of Forex Reserves) 14.6 in ’91 10.6 in ’01
- Current Account Deficit (% OF GDP) -3.1 in ’91 -0.9 in ’01
Now : Credit cards with global validity, payable in Indian rupees
Then : The FTS plan, where $500 was allotted a year by the RBI
* * *
Best And Brightest
Gujarat and Maharashtra grew at close to 10 per cent, beating South Asia.
Literacy in States: Top 5 (Percentage
of literate population)
1991 2001
Kerala 90 91
Mah. 65 77
TN 63 73
Gujarat 62 70
Punjab 59 70
India 52 65
Source: Planning Commission; Census 2001
* * *
Made In India
Competition will lead to true Indian brands, local and global.
Best corporate performers (By market
Cap/$ billion)
1991 -921 2001
Tisco HLL
ITC RIL
Telco Wipro
Cn. Tex Infosys
HLL RPL
RIL ITC
Grasim ONGC
GSFC IOC
ACC SBI
Colgate HCL
Source : Bt Morgan Stanlay Capital International
* * *
The Factory Mindset
- Industry grew by 12 per cent in 1995-96, its last great hurrah. Growth has slackened to
2.7 per cent this April.
- Contrary to popular belief, labour cost went up by $157 per year to $1,192 in the
post-reform period.
* * *
Time For Social Renewal
- Female illiteracy is still an abysmal 56 per cent, compared to China’s 25.
- Employment in organised sector stays stagnant at 2.8 crore in fiscal ’99.
- Average life expectancy has slightly improved to 63 years.
* * *
A Recipe For Disaster
- According to a member of the BJP think-tank, 7 lakh small units shut shop, 7,000 medium
and large
industrial units closed down and 10 million lost jobs in the past five years
- The Left says while savings are poor—25 per cent of the GDP—policy encourages
uninhibited consumption
* * *
Many New Enigmas
Nine states, home to 60 per cent of our people, saw little per capita income
growth.
Percentage of people below poverty line
1993 1999
Bihar 55 43
Orissa 49 47
MP 43 37
UP 41 31
Mah. 37 25
India 36 26
Source: Planning Commission; Census 2001
* * *
Overflowing Silos, Empty Stomachs
- The farm sector grew by 3.9 per cent in the pre-reform period. In fiscal 2000, it may
drop to just 0.9 per cent.
- Food stocks have ballooned from 13 MT in ’91-92 to 42 MT. But many poor are now out
of the PDS.
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