CHANGING FACE OF RURAL INDIA AND EMERGING NEW INDIA

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By Jagdish Sethi : During my childhood in school (1960-1970), we were taught that the “Soul of India Lives in Villages” AND “Bharat Ek Krishi Pradhan Desh Hai”. More than 80% population of India was living in the villages and the Indian economy was primarily dependent on Agriculture.

India got its freedom on 15Th Aug’1947 and the country was divided on the basis of religion. The partition of country had caused an enormous damage to properties and a loss of millions of lives. The united India had participated in World War-II under their British Rulers and it had its ramification of destruction in India as well. Though the country got its independence, it was in shambles and reeling under poverty and unemployment.

Industrialists like JRD Tata, GD Birla, Gujarmal Modi and others came forward and started various industries to produce products and they were setting the tune of building the Nation and industrial revolution. It was the beginning of Industrial revolution and slowly it was contributing to GDP besides Agriculture. For many decades most of Items required even for day to day life were coming from Russia. Petroleum products were largely controlled by foreign multinationals for many years after independence. Many multinationals were increasing their footprints in India and started setting Industries to meet the growing needs. When the country was taking steps to stand on its own, India had to fight three wars within 9-10 years. India also perhaps saw the worst famine in mid 60s. All these factors were the road blocks to the progress of country. The country also witnessed the political turmoil and instability which was affecting its economy to stabilise. Engineers and doctors getting educated in premium institutes in India were migrating to U.S. and other countries resulting in brain drain.

The Rural India was totally ignored all these years. The country’s economy and GDP was dependent on agriculture but the very farmers and their needs never got the attention.  Agriculture was mostly dependent on rains, water bodies and well water. “RAHAT” was the soul of village for irrigation and symbol of village life.

Slowly, irrigation wells started getting dried up due to decreasing underground water  level and were replaced by the electric or diesel operated bore-wells. Agricultural land slowly was reducing while there was growing need for agriculture produce to meet the requirements of ever increasing population. Farmers were struggling to get fertilizers, water, power, seeds etc needed for farming. All the combined factors were contributing to the worsening conditions of the farming community.

The government emphasis had shifted to Industrialisation and urban development as they were contributing favourably to GDP and growing employment needs. The rural India continued to get less attention and negligible employment generation. The younger generation began migrating to cities losing interest in farming. Only the death of farmers were making news due to farm loss and increasing financial burdens.

Amidst this background, a few weeks back, there was news about rural India that gained country-wide attention. GDP of Rural India is growing in double digits (15-20%)* while GDP of Urban India is growing at <10%*. (*subject to correction). Another-news published on 31.08.2018 in daily newspaper headline got attention which goes like:

“Rural India goes for anti-ageing Cream: Spread of Mobile internet, DTH TV boost, sale of Global Brands, Aspirational Buys”

Apart from global cosmetic creams, biscuit andliquid soaps there is an increasing demand for appliances like microwaves. The increasing demand for FMCG products reflects the favourable impact on rural economy.

As per a report by Hindustan Unilever Limited (HUL), it credited the increase in their profit of Rs. 1351 crores to the increase of FMCG products sales in Rural India.

A favourable monsoon and series of measures by the government are working wonders for Rural India. As per a report, farm income is likely to get a boost in 2018, which in turn will boost rural sales of motorcycles, cars and tractors. All trends are positive indicators of progressing Rural Economy.

What has changed in last four years after Narendra Modi became PM in May’2014?

Normally demand for durables and consumables will rise after the basic needs of “ROTI-KAPDA AUR MAKAN” are met and one there is surplus money to spend.

This is an indicator that earning of people in Rural India is increasing and they have extra money to purchase such items. Surely, it is an indicator that the face of Rural India is changing and a new class of “RUR-URBAN” is becoming stronger and stronger.

What has contributed to this change and strengthening of Rural India OR growing “RUR-URBAN” class?

I think it is the strategic planning and working for each scheme at an appropriate time. Let us recall the statement of former PM Rajiv Gandhi who said:

“One Rupee given from Government treasury for poor only 16-paisa reaches the poor”

This pointed out the corruption in system and the involvement of middle man. The disease and cause was identified but no remedial action was taken by Congress Government for six decades though most of the time Congress was in power. It took them close to four decades just to identify the cause.

PM Modi from his experience of 12 years as CM and after working on ground level and changing the face of Gujarat was fully aware of corruption in system and middle man involvement. For providing the government aided schemes and benefits to the poor, it was necessary to remove the middle man and any personnel involvement. The game changer was JAM and DBT scheme. Opening of Jandhan Bank Accounts linked with Adhaar and Mobile.

This enabled government to launch “Direct Benefit Transfer” and to transfer the government subsidies and aids directly to beneficiary bank account. The corrupt system and middle man was eliminated and “One Rupee transferred by Government was reaching fully to Beneficiary account”. As on date approximately Rs. 4,33,000 crores has been transferred to the beneficiary accounts.

1. PM JAN-DHAN ACCOUNTS YOJNA

   PM Modi in his first speech from Red Fort on 15^Th Aug’2014 declared to open Bank accounts for every person with ZERO BALANCE account and provision of Rs. 5000/- loan, Insurance of Rs. 10,000/- and Accidental Insurance of Rs. 1.0 lacs. Results: 32.41 crores accounts are open and Rs.81,200 crores had been deposited in accounts though it was a zero balance accounts.

   Now the government has made this scheme for person of 65yrs age instead of 60yrs earlier. Overdraft limit has been increased to Rs.10,000/- from Rs.5,000/- and accidental Insurance is increased to Rs.2.0Lakh from earlier 1.0Lakh.

2. Government has now connected all the remaining 18000+ villages of the country with electricity. The people of India who were living in dark even after 70 years of independence are now connected with power supply system. With availability of power approximately 1.32 crores homes are provided with electrical connection.
3. Under Ujjwala Yojna government has provided 5.4 crores gas connection along with gas burner. More than 3-crores of people gave up subsidies on gas cylinder on a request from PM Modi.
4. Government has committed to provide house to everyone by 2022 – the 75^th Year of independence. Approximately more than 1 crore houses are provided in last four years under PM Awas Yojna.
5. To provide loans to various sections needing money for starting their own ventures, Government launched MUDRA BANK to provide soft loans upto Rs. 10.0 Lakhs to individual. More than Rs. 6.0 Lakh Crores of loans are disbursed to more than 12 crore people.

   Besides above, about 14 Crores people are registered under “PM Suraksha Bima”, about 5.5 crores are registered under “Jeevan Jyoti Bima”, and cheap medicine are made available at affordable cost. Now under “Ayushman” a family is provided medical insurance of upto Rs. 5.0 Lakhs. Approximately 10 crores families are expected to be benefitted with these schemes.

   All the above are helping the Rural India to recover from poverty line. As per recent report a month back approximately 6.0 – 7.0 Crores people have come out of poverty line.

   With all above schemes, connectivity of villages with roads under Gram Sadak Yojna (1.8 Lakh Km of road is constructed in four years), broadband connectivity to all “Pachayats”, toilets to stop open defecations, and generating self business aspirations with Mudra loans, has created aspiration and economic growth at various levels in Rural India and are changing the face of Rural India.

    2. SCHEMES FOR FARMERS:

   While the above schemes have started bringing changes in Rural life, Government has also launched many schemes and policies to encourage and empower farmers.

   With the availability of electricity in every village, the bore-wells were available for irrigations. Besides Government is creating new water bodies and water ponds apart from making efforts to interconnect various rivers 

   1. By NEEM coating of Urea and commissioning of new plants, urea was now easily available. Neem coated urea has also helped in preventing the crop damages due to insects.

   As claimed by IK Suri, Ex-General Manager (Technical) of NFI, these measures are increasing the productivity and less loss of farm produce due to attack by insecticides.

   2. Under “National Agriculture Market” e-NAM approximately 1.15 Crores farmers have enrolled 479 markets, 14 states and 1-UT are integrated.

   This helps the farmer to sell his produce at the highest rates using online portal.

   Besides, government has announced the MSP for various products and the central/state governments buy directly from farmers as per MSP.

   To cover the risk of damage of crops for multiple reasons, Government has launched PM Fasal Bima Yojna. More than 10.6 crores farmers are covered under this scheme.

   Government has issued approximately 16 Crores soil health card to plan the quantity of fertiliser and land suitability of products for cultivation. All these are helping the farmers for a better yield and better return.

   3. ENSURING PAYMENT OF “MINIMUM SUPPORT PRICE”

   Modi Government took big steps for waving the Loans of farmers and getting their outstanding payment by Sugar Mills against supply of sugar cane in various states. They also declared an increase of MSP to 1.5 Times of the expenses incurred by farmers for various items. Under Kisan Fasal Bima Yojna the crop is covered under insurance which takes away any loss due to damage of crops till it is sold.

   These measures have started bringing relief to farmers and taking them away from the clutches of LOAN Sharks exploiting the condition of farmers. Loans can be now taken from Government.

   CONCLUSION:

   First time in since Independence, with the above-mentioned measures and launch of various schemes, the life of RURAL INDIA and POOR has started to change for the betterment. The apathy shown over the years by the previous governments kept the life of poor and of Rural India in backward conditions. The efforts are turning positive to identify the talents among 65% of populations which was not part of the mainstream. A strong BHARAT and “NEW INDIA” of PM MODI dream can only be developed by the development of Nort-East states and RURAL INDIA.

   A PROMISE OF STRONG FOUNDATION FOR “NEW INDIA” HAS BEEN KEPT AND THE RESULTS HAVE STARTED MAKING THE NEWS. NOW THE NEW RUR-RBAN HAS STARTED SHOWING ITS PRESENCE AND IS VISIBLE TO REST OF COUNTRY.

   RUR-URBAN WILL NOT ONLY CONTRIBUTE FOR COUNTRY GDP BUT ALSO BUILD A STRONG FOUNDATION AND WILL PROMINENT FACTOR WHEN THE COUNTRY’S ECONOMY IS CALCULATED.

   “JAI HIND JAI BHARAT”

   _____________________________________________

   BY JAGDISH SETHI (IIT ROORKE)

   A “Project Management Consultant” with over 43 years experience has worked on numerous projects in diverse field (Atomic Power Projects, Chemical and Fertlisers, Food and Pharmaceuticals). Last 16 years executed large EPC project for Water Management as Project Director associated with EPC companies.

   Twitter Handle: @jcsethi