According to the data provided by DoPT the authorized strength of IAS officers is 6,699 as on 1 January 2019 but the actual officers available are 5205.

In a welcome move, the Department of Personal and Training (DoPT) has given an in-principle approval for constituting a committee to look into the deficit of IAS officers at the Center and to suggest a recruitment plan for the years 2021 to 2030. The main issue is the shortage of IAS officers in various senior positions. The estimated amount of shortage as told by DoPT to a parliamentary panel is in excess of 1,500.

According to the data provided by DoPT the authorized strength of IAS officers is 6,699 as on 1 January 2019 but the actual officers available are 5205. It is also a matter of concern that this gap between the sanctioned strength and actual availability is gradually increasing. The genesis of this shortage can be traced back to the reports of the Central pay commissions , particularly, that of 1996. This was a period of grave financial crises being faced by the government of India as well as the state governments.

I remember that the government of UP was facing a situation where the daily cash flow management had become a challenge and we were concerned about the revenue as well as fiscal deficit. The pay commission had recommended higher pay scales for all government officers and employees but had also cautioned about the financial impact. A major part of the recommendation of the pay commission report was about how to control the expenditure on salaries.

I recall that we had arrived at a figure of 3 percent employees retiring every year and it was decided to fill up only 2 percent of the vacancies thus created and in this manner gradually reduce the government staff. This did not take into account the imbalance that such a measure would bring about.

In addition to the above the recruitment to various government posts was slashed and, in particular, the IAS was a major sufferer. The batch strength of the IAS was reduced considerably and brought down to below 100 every year. This led to serious crisis and I remember that in a state like UP where we have 75 districts it became a very difficult task to find officers to man the district administration. In fact, several batches of the IAS had only about 4 to 5 people joining the UP cadre. This trend continued for quite some time and is one of the major reasons for the shortage of officers of a particular seniority which is having an adverse impact today at both government of India and state governments level.

In particular, there is a huge shortage of officers at the Deputy Secretary and Director level in the government of India. The realization soon dawned on the policy makers and larger batches began to be recruited going up to a level of 180 every year. It is not clear whether a proper rational assessment has been done to decide upon this figure and there are those who feel that this number should be further increased.

In the light of this, I find merit in the government of India decision to setup a committee to examine this issue. We must make an assessment of the number of posts that would be required in the IAS to meet the current and future challenges of governance. They will have to take into account the number of officers recruited directly into the IAS as well as those promoted from the state civil services.

The shortage is more manifest at the government of India level than in the states. This is because the states can fill up vacancies by rapid promotion of the officers belonging to the state civil services. The number of years required for state civil service officers to be promoted to the IAS varies from state to state ranging from 10 to 25 years.

Again, this is not based on any scientific study but is implemented more as a rule of thumb or decided by the kind of pressure which state officers can mount on the political executive. It is also pertinent to note that the state civil service officers, but for a few exceptions, do not opt for a posting in government of India on promotion to the IAS.

There are some obvious reasons because of which young IAS officers do not opt for GoI at the Deputy Secretary/Director level.

The fact is that at the same level of seniority an officer gets much greater creature comforts at the state level as compared to the Central government. Many officers are posted as district officers which is one of the most attractive posting for an IAS officer. Even in the state government he is either head of department or in a significant position in the state secretariat where he does not have to bother about issues like an official vehicle, house, school, independent office, etc. At the same level if he goes to government of India he finds that very often he might even have to share an office room and is not likely to get an official vehicle.

A very interesting feature is that in GoI only Secretaries have an attached toilet to their office while the others have to use a common facility. Then it might take him months to get an official accommodation and for this period he has to fend for himself. The houses allotted, also, are nowhere near what he would get in the state government. To this are added the woes of getting your child admitted to a good school and getting adequate medical facilities.

It is, thus, no rocket science as to why a young officer prefers to stay back in the states rather than going to Centre leading to a shortage of officers at the Center. Moreover, below a Joint Secretary level officers in GOI mainly do clerical work where no decision making takes place at their level. The position is very different in the districts and state governments.

In the IAS, out of total vacancies in a state cadre a certain percentage is filled by those candidates who belong to that state while the balance goes to officers from outside. It is generally seen that the “insiders” prefer to stay back in the state while the “outsiders” have a greater propensity to opt for GoI.

Also, officers allotted to North Eastern states prefer to come to Delhi while officers from states nearer to Delhi often prefer to remain in the states.

It is good that the entire issue is finally being examined. It is clear that to attract IAS officers to GoI at a level below Joint Secretary the service conditions would have to be improved and jobs enriched. The whole issue of requirement of IAS officers at each level needs to be scientifically determined. The reality is that the intake of IAS officers each year will have to be enhanced.

(The author is a retired 1978-batch IAS officer from the UP cadre; views are personal)

Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget for 2022-23, with the focus on fast-tracking the economy, providing opportunities to businesses and creating six million new jobs. Technology, Agriculture, healthcare, MSMEs and infrastructure, too, feature prominently in the minister’s scheme of things.

Senior public sector leaders joined us to decode the fine print of the budget announcements and key takeaways for various sectors including government IT, urban development, health and education.

Speakers

Mohd Ujaley, Senior Assistant Editor, ETGovernment
Alok Ranjan, Former Chief Secretary, Uttar Pradesh
Dr. Bhimaraya Metri, Director, IIM Nagpur
Vidya Sagar Singh, Senior General Manager & Head-Digital Services, National Small Industries Corporation (NSIC)
Amit Jindal, Co-Founder, Flex Advisory
Amit Singh, Partner – Technology, PwC India

Dust seems to have settled on the furious debate that was triggered by the statement of Sri Narayan Murthy that the Indian youth needs to put in seventy hours of work every day if India is to realise its goal of becoming a developed nation by 2047. The intent behind what Mr. Murthy said is quite clear and I agree with his thought process. Nothing in life is achieved without persistent and dedicated hard work and if India is to keep its date with destiny then its leaders, managers and officers have to put in a lot of effort.

Many leaders from the corporate world came out vociferously in support of the statement made by Mr. Murthy. On the other side of the spectrum a lot of young managers were critical of this comment as they felt that this kind of a work schedule will not leave any time to do anything else and completely destroy the work life balance. Incidentally, I was addressing students at a reputed management institute and I deliberately raised this issue about the statement of Mr. Murthy. I was surprised to find that the students were almost in unanimous agreement that seventy hours of work every week is neither possible nor desirable. They felt that this would seriously undermine the concept of work life balance and lead to early burnout and disruption of family life and even lead to physical and mental health issues. On the other hand I had a discussion with some senior level corporate managers who not only strongly agreed with Mr. Murthy but also were very critical of the younger generation’s attitude towards work.

I feel the statement has not been appreciated in its proper context. Seventy Hours was just a number indicating that a lot of hard work has to be put in by the youth. It does not in any way say that one has to ignore one’s responsibility to the family or health or any other aspect of life. It is simply talking about having a commitment to one’s work and emphasizing a truism that there is no substitute for hard work if an individual or a nation has to progress at a rapid pace. It is true that average working hours per week in the western nations is lesser than that prevailing in India. In fact a country like France works 35 Hours a week whereas the corresponding figure for India is about 48-49 Hours. It is thus true that Indians are working harder than their western counter parts. However, it is also a fact that the productivity of the Indian work force is much less and also that we are, as a nation, at a different level of economic development. The managers in developed countries assign great value to leisure whereas India has not reached the stage where it can factor leisure as a necessary part of life.

Having established the significance of putting in hard work I must point out that it is important not only to work hard but to work smart. If the time is not managed properly and the work is not efficiently organized then any number of hours will not lead to better results. The idea is to get the maximum out of the effort made because this is the only way to enhance productivity which is the essence of the problem facing India today. This requires a culture of developing leaders and not only managers. Of course, efficient management of human, financial and technological resources to achieve the desire goals is necessary but the current disruptive environment requires all our corporate managers and civil servants to perform at a different level and with a far greater degree of dynamism and responsiveness. They must inculcate the qualities of leaders. A leader must have a vision for the organization or his department and have the capacity to align all members of his team with the goal. She should have the ability to motivate and inspire her team members to a higher level of performance. A culture of prompt decision making is the need of the hour and the capacity to translate vision into reality. All this is possible only if the leader possesses excellent communication skills and has positive problem solving approach. The leader must be willing to take initiative to drive new ideas and encourage creativity in her team members. The leader today must not only be aware of the rapid technological changes taking place around her but also be able to understand them and harness them for the benefit of her organization. The leader to be more productive must realise that it is people who should use technology and the fact that people skills are of paramount importance for the leader to be able to promise a better future for all. This requires the human resource in the organization to be motivated and happy.

Happy employees are always more productive and this is where it is necessary to see an employee not merely as a human resource but in a holistic manner as a human being. Qualities of emotional intelligence and, in particular, those of empathy and compassion are required to make each member of the team feel valued and given the self belief to perform at his best. This means that the issue of work life balance needs to be addressed in a positive manner because a human being can not be made to perform like a machine. There is a trend in many organizations to put excessive pressure on the managers by setting impossible deadlines and creating a toxic work culture. This leads to mental health issues due to stress and anxiety and eventual burn out which is detrimental not only for the manager but also for the organization. Besides, an organization must give time and space for a manager to grow by developing his innate strengths and learning new things. The time must be given to sharpen the saw for better results. Moreover, creativity requires a manager to be away from the constant pressure of daily work and think freely. This is possible only if the work environment is conducive to development of new ideas and the manager also is feeling inner peace and harmony to be able to think creatively.

The question, then, is not about the number of hours of work put in but the results that you get out of the work. Greater and better results are possible if the work culture is participative, creative and non-hierarchical. India has a young work force and it must reap the demographic dividend if it has to join the group of developed nations. It must get the best performance out of its youth. This is possible only if the work culture is congenial and work force enthused about its work. We need a happy work environment to make the work force more productive and propel the organizations and the country to a faster and higher track of growth.

There is a need for strategic use of consultants; the government needs to recognize and leverage its internal strengths while ensuring consultants contribute meaningfully to governance

I read an article in a newspaper recently which gave the surprising information that the central government through its various departments like power, petroleum and 16 other ministries departments along with NITI Aayog have outsourced various important projects and assignments which involve almost every aspect of governance to the big four consultants and Mckinsey & Co and company. The big four consultants involved are PriceWaterhouseCoopers (PWC), Deloitte, Ernst & Young Global Limited and KPMG International Limited. Almost Rs 500 Crore worth of consultancy assignments from various government ministries, departments and organizations have been awarded to these consultancy companies between April 2017 and June 2022. This is indeed a staggering amount and one wonders whether consultants are slowly beginning to control a large portion of the functioning of the Government.

In India, the annual turnover of consulting firms increased by 10.8 per cent annually on average from 2013-2018. The Budget allocation for professional services at the NITI Aayog increased nearly five-fold between 2016-2017 and 2017-2018 and subsequently rose by 30 per cent in 2018-2019. In fact, my experience after observing the working with the Government of India is that most senior civil servants are enamoured of consultants and treat them as a panacea for all problems. The State Governments were relatively immune to this phenomenon till a few years ago but slowly they are also looking towards consultants for all kinds of assignments. The consultants have an important role to play but the Government should be clear on where to use them and how. The consultants have very talented manpower recruited from some of the best educational institutions and they promise to bring in new ideas, quantitative rigour, risk analysis, best practices and efficient management practices into any assignment that they take up. Ground level Government officers do not feel that the consultants have superior domain knowledge and wryly comment that consultants take ideas from them and then re-package and present them through impressive multimedia presentations or slick spiral-bound reports replete with bar diagrams, pie charts and other attractive tabular or graphic representations.

Government is a very complex organization and has to fulfil a multiplicity of objectives as against the profit maximization goal of the corporate sector. Despite the enormous talent that these consultancy organizations have they do not have the required knowledge and breadth of vision to handle the various assignments that are given to them by the Government. I was intensely surprised to find that even for the organization of Mahakumbh a few years ago by the UP Government, one of these consultants was handling a large number of tasks. Organizing a Mahakumbh is a highly complicated task and one wonders what value an inexperienced consultancy organization would add to it. I found the consultant organizing media briefings when this task has always been performed very comfortably by the information department. Further, one of these consultants is now advising the Government of UP on achieving a trillion-dollar economy by 2027 when it is apparent to all that this is an impossible goal because it requires a 34 per cent annual growth rate! In most departments in UP, the consultants have been appointed and they are carrying out routine tasks. I was amazed to find that they were undertaking clerical jobs like putting up draft replies to letters. I feel in this manner not only is the Government mis-utilizing the consultants but the consultants are also wasting their time and resources and not adding any value.

Government cannot work alone and private participation is required to make governance more efficient. We have seen how the public-private partnership (PPP) models have brought in private-sector investment and expertise in the planning and implementation of infrastructure projects. The engineering, procurement and construction (EPC) is also a popular type of contract which has been successfully used in building infrastructure in UP and I saw the efficacy of this partnership with the private sector in the construction of the Lucknow Agra Expressway. Over time, it has been realized that Governments can deliver better by involving the private sector in areas where the private sector has expertise. Similarly, the consultants bring to the table a lot of useful input but we should be clear on what kind of a relationship would exist between the Government and the consultants. We do not want the consultants to take over the routine tasks carried out by Government officers. In fact, the reality is that the Government has a lot of knowledge about its work and its officers and employees have a lot of collective competence, skill sets and resources. These must be respected as the reliance on outside consultants tends to erode the institutional memory.

For the corporate sector, the consultants can give strategic inputs to take the organization to the next level but the issues for the Governments are different and cannot be looked at through the same prism as the private sector. It is also true that the civil servants involved in Governance have a long experience which cannot easily be replaced. The fee paid to the consultants would need to be justified through results and better outcomes. My experience has been that the consultant does offer various solutions but is not involved to that extent in the implementation which means that results are not forthcoming and the consultants do not feel themselves accountable for the same. The easiest thing in the world is to offer advice on what needs to be done but in practice, the realities are far too complex and there could be genuine issues which make the advice impractical. In addition, there is also the fact that the consultants do not have any democratic accountability which is the essence of good Governance.

I found that very often senior officers of Government resort to hiring consultants in order to make their recommendations acceptable by giving them the tag of an expert. It is also true that Government departments are overburdened and are not able to analyse the data and this job can be entrusted to consultants. There is no doubt that consultants can bring to the table rich experience from other countries which cannot be adopted in full measure but does indicate the direction in which one can think and move forward.

The Governments must become conscious of their inner strengths and focus on capacity building of their officers and employees. They must make sure that they reap the benefits of the experience of their human resource. Consultants should be hired for specific assignments where there is a gap in Government and also in areas where the consultant can bring in knowledge from outside to improve the effectiveness of Government work. The Government must know what they want from the consultant and also can monitor and guide their work. The consultants should be used in a manner that adds value to Governance.

Casualties in a land dispute in UP’s Deoria district remind that the huge pendency of such cases should be resolved swiftly by police and local revenue officials

Very recently, there was a major incident in the Deoria district of Uttar Pradesh where several people lost their lives due to a dispute over land. My experience as an administrator in UP has been that land disputes, particularly in rural areas, are a major cause for violence between groups and individuals, and most of the offences to the human body are related to this. Effective governance of land-related matters can bring down the crime rate substantially, and ensure maintenance of public peace and order.

The land in rural areas is administered by the revenue department, with the Patwari (Lekhpal) at the village level, Tehsildar at the Tehsil level, and the sub-divisional officer and district collector at the sub division and district levels, respectively. It is the responsibility of the collector, through his revenue officers, to maintain a proper record of land ownership and possession. This work used to be of the highest importance in the past when land revenue was the major source of revenue for the government. Today, the contribution of land revenue to the resources of a state is negligible, as income tax, GST and other sources have taken over. Yet, the function of maintaining proper land records is of the greatest importance, as it determines the ownership of agricultural land. The Patwari wields a lot of power at the village level because he is the custodian of the land records and, with one stroke of his pen, can change the entries in the land records, or omit to record a legitimate entry, which can change the lives of the people concerned. The UP Government changed the name of this functionary from Patwari to Lekhpal but this has not diminished the power of this authority. Even today, at the village level, the citizens are in great awe of two Government functionaries — the Patwari and the station officer of the local police station, popularly known as Daroga. In the past, correction and inspection of land records were among the most important functions of the district collector and his team. I recall that as a district collector, I used to carry out inspections of villages, and during these inspections, I would sit under a tree surrounded by the village folk and read out the entries from the land records to verify them. Inevitably, I used to find that even in the cases where a land owner had died, the name of his successor had not been entered in the records; one had to do so on the spot. However, if there were other nature of disputes, then it had to be referred to the competent revenue court for decision. Since land offers livelihood to farmers, this is the cause for a lot of corruption amongst revenue officials at the ground level.

A measure to curb this corruption has come through the intervention of technology in the form of computerisation of land records. Today, all land records are maintained online, and it is very easy to obtain a copy of the same from the computer installed at Tehsil. This has considerably reduced the power of the Patwari. I remember implementing computerisation of land records at the district level, and facing a lot of opposition from the Patwaris and other revenue officials. In fact, I remember taking a decision to distribute the copies of land records to each land holder in the district, so that he is aware of his rights. However, this got into a lot of procedural and legal issues.

Most land-related matters, including mutation of name, demarcation of land, or issues relating to title come up before the revenue courts where there is huge pendency of cases, and the disputes or issues linger on for years without resolution — more often than not leading to crime and violence. After the Deoria incident, when the UP Government reviewed the pendency of cases in the state, it found that 18.4 lakh cases were pending in revenue courts. 2.5 lakh of these were pending for more than five years, 2.6 lakh for more than three years, and 3.1 lakh between 1 and 3 years. A drive has been launched for the disposal of these cases, but such efforts have been made in the past as well. They yield results for a short while, and then it’s back to square one. Today, the land revenue courts have also been computerised, making it possible to dispose of matters faster. However, the concerned officers devote less time to court work, and lawyers also frequently request adjournments, leading to persistent delays. In fact, revenue officers often have a significant workload, including law and order, protocol duties, civil supplies, and development work, which they find more satisfying and glamorous than court work. Consequently, officers tend to give the lowest priority to their judicial work. I believe the only way out is to increase the number of revenue officers in a district and designate some of them exclusively for court work. This is necessary to protect the common citizen at the village level from exploitation and to minimise incidents of violence and murder, as occurred in Deoria.

My experience as district collector revealed that small land-related disputes at the village level, if left unresolved, can escalate into major conflicts and enmities between families, leading to serious law and order problems. During my tenure as the chief secretary of UP, I devised a system for resolving these land disputes by making it the joint responsibility of local revenue and police officials. Every day, numerous applications are submitted at the Thana, Tehsil, and collectorate regarding land disputes. Most of these disputes can be resolved if officers visit the villages, sit down with both parties, and find a solution. Some disputes may require the intervention of the local Patwari and police officers, while those of a more serious nature can be escalated to the level of the concerned sub-divisional officers. Major issues may even require the district collector and the superintendent of police to visit the village together. All these disputes should be entered into the computer system and monitored rigorously, with accountability clearly defined. I found that this approach had a salutary effect, preventing many serious crimes and law and order issues. To avoid situations like Deoria, this system needs to be made mandatory.

Quick disposal of revenue cases and resolution of land-related disputes at the village level jointly by revenue and police officers will lead to effective governance and reduction in crime and other incidents related to disturbance of public order. Deoria-like situations should not be allowed to take place again.

While the adoption of the Women’s Reservation Bill can lead to greater inclusion of women in the development process, the inordinate delay in its implementation raises concerns

Three path-breaking events have made India proud in the last two months. The landing on the south pole of the moon demonstrated the scientific and technological power of the country. It was followed by a successful G-20 conference which showcased to the world the culture, ethos and values of the Indian civilisation and projected India as a leader of the global south. The third was the immensely significant adoption of the Women’s Reservation Bill in our parliament with the support of all political parties. This bill heralds the beginning of a new era of gender equality with its political, economic and social implications.

The Women’s Reservation Bill proposes to reserve one-third of the seats in the Lok Sabha and state legislative assemblies for women. Currently, the representation of women is only about 14 per cent. Raising this to 33 per cent would make the Indian political scene more inclusive and diverse, besides empowering the women. As many as 64 countries around the world have some reservation for women in their parliament. In India, several governments in the past thirty years had attempted to reserve seats for women in the parliament but due to lack of majority and also differences of opinion they could not do so. It is heartening that though the opposition parties have suggested modifications to the bill, they have supported it.

The major objection is that the reservation bill does not have a separate reservation for women from the backward castes and minorities. There is already a provision for reservation for women from scheduled castes and scheduled tribes. The reasoning is that if the women from backward castes are not given representation, then they will not be able to take advantage of the 33 per cent reservation for women, which could be dominated by the socially and economically better off sections of society. This apprehension is not misplaced, and merits serious consideration if the Women’s Reservation Bill is to fully meet its goal of upliftment of women across all sections of society. There are issues in doing this but if the will is there, then this is very much possible.

The second objection is regarding the time frame of implementation, which is abnormally long and linked to the delimitation of constituencies, which itself is dependent on the census. For one reason or the other, the census operations which were scheduled for 2021 have got delayed, and with the elections round the corner, the census operations are not likely to be completed before 2025. This means that the delimitation exercise is not likely to be done before 2026. If everything goes well and according to schedule, then the Women’s Reservation Bill can be implemented earliest before the 2029 general elections. However, the reason for linking women’s reservation with delimitation is not clear, and also makes one skeptical about the actual implementation because delimitation will be extremely difficult to implement. The delimitation exercise is based on population figures, and the southern states are already raising their voice against it. They feel that they would be penalised by reduced representation because of the positive work that they have done in reducing the population rate of growth. They have a genuine cause for concern, and it is for this reason that the delimitation exercise had been put on hold twice in the past. Many leading women thinkers and organisations have also expressed their apprehensions, saying this may cause indefinite delay in the implementation of the Women’s Reservation Bill. Some have even gone to the extent of doubting the intention behind this linkage. I feel that the issue of women’s reservation should not be allowed to remain pending indefinitely, and it should not be made contingent upon the delimitation exercise.

In any case, the upcoming General Elections of 2024 are a litmus test for the commitment of political parties to this very important reform. Nothing stops them from putting up women candidates in the election fray. If not 33 per cent, then at least 20 per cent or more women candidates should be put up by all political parties to declare their intent and commitment to the cause. So far the record of political parties in this regard has not been very edifying. The exceptions are the BJD in Odisha and the TMC in West Bengal. Moreover, to prepare women for their political role, at least 33 per cent of the posts in the party organisations can be given to women.

More than 30 years ago, 33 per cent reservation was provided for women in the local bodies. I remember that initially the women used to be proxy candidates, with their husband doing all the work and exercising all the powers. In fact, I used to be amused when, during my stint in the districts as DM, I would get visiting cards of men calling themselves as ‘Pradhan Patis’ (Husband of the Pradhan). Many People wondered at that time whether the reservation would make any difference to the status of women, considering the social realities of rural India. However, over the years, I noticed a big change, and now Pradhans have become pro-active and full of self-confidence. They are performing their roles as well as their male counterparts, if not better. It has also been found that the women Pradhans have focused much more on the relevant issues of health, education and nutrition. This only goes on to show that once women get their due in the parliament and state assemblies, they will contribute in a big way to social and economic development of the country. The 64 countries around the world where there is reservation for women in the parliament have shown that women in leadership positions have positively impacted the delivery of public policy and improved the quality of life of the communities.

It must be pointed out that women’s reservation in the parliament is not the panacea for all the issues faced by women. At the moment, more and more women are going for higher education, but even now they comprise 40 per cent of the country’s graduate population and about 30 per cent of total post graduates. The level of illiteracy in women is much higher than men. This indicates that a lot of work needs to be done to make women literate and enable them to access higher education. Without doing this, it would be difficult for women, particularly from rural areas, to participate effectively in the governance of the country.

More than half of the women in the country are homemakers presently, and even amongst those who are working, the earning is much higher than that of women. In addition, the level of participation of women in the labour force is only about 25 per cent, much less than that of men. Enabling social and economic environments is required to increase the labor force participation of women, which has a direct impact on the rate of growth of the economy.

The Women’s Reservation Bill is an idea whose time has come, and there should be no conditions imposed that delay this idea becoming a reality. It is a commitment to empower women. However, to genuinely bring about women-led sustainable and inclusive development, much more work needs to be done at the ground level to improve their social and economic statuses. A major step in the right direction has been taken but it should be implemented fast, and to make it a transformative experience, all aspects of development of women should be prioritised in policymaking. There has to be a genuine commitment to make women equal partners in the process of development.

The Indian government should maintain an unwavering focus on holistic development of the citizens to ensure that India becomes a developed nation by 2047

India is on the track to become the world’s third-largest economy by 2028, surpassing both Japan and Germany. This is indeed a noteworthy achievement and will considerably enhance India’s standing in the eyes of the world. The story of reforms, initiated in 1991, is responsible for giving this growth momentum to the Indian economy. Today, India’s GDP stands at USD 3.7 trillion, while Germany’s is at USD 4.3 trillion, and Japan’s is at USD 4.4 trillion. We are still far behind the USA at USD 26.9 trillion and China at USD 19.4 trillion. However, the encouraging news is that the Indian economy has maintained a steady rate of growth over the last 20 years. It took India from 1947 to 2007 to surpass the USD 1 trillion GDP milestone. Impressively, India accelerated from USD 1 trillion to USD 2 trillion within just seven years after 2007. In fact, when considering GDP at purchasing power parity (PPP), India already ranks as the world’s third-largest economy, with a GDP of USD 13 trillion, following the USA at USD 26.9 trillion and China at USD 33 trillion. India’s PPP ratio is 3.5, while China’s stands at 1.7.

Angus Maddison, in his remarkable book ‘Contours of the World Economy 1-2030 AD – Essays in Macroeconomic History,’ has said that in the year 1 AD, India’s GDP represented 32 per cent of the world’s GDP. This figure declined to 28.1 per cent by 1000 AD and further decreased to 24.4 per cent in 1700 AD, plummeting significantly to a mere 4.2 per cent in 1950. India’s population in 1 AD accounted for 33.3 per cent of the world population. Between 1 AD and 1000 AD, India’s GDP stagnated at USD 33.75 billion, with a steady population of 75 million. However, from 1000 AD to 1700 AD, India’s population surged to 165 million, and the GDP tripled to USD 90.7 billion. By 1950, the GDP had risen to USD 227.22 billion, accompanied by a population increase to 359 million. Despite the growth in GDP and population during this period, India’s overall share in the world economy experienced a drastic decline. This was because we missed the industrial revolution as colonial masters harnessed India’s resources to fuel their economic growth. The population increase became particularly significant after 1921 which is known as the year of great divide as the discovery of antibiotics brought down the death rates considerably.

According to a recent projection by the IMF and Goldman Sachs, if the current momentum continues, India’s GDP in 2075 is estimated to reach USD 52.5 trillion. This would surpass the projected GDP of the USA in 2075, which is estimated at USD 51.5 trillion. China is expected to be marginally ahead at USD 57 trillion. Meanwhile, countries like the UK, Japan, and Germany would lag far behind, with GDPs of USD 7.6 trillion, USD 7.5 trillion, and USD 8.1 trillion, respectively. This data unequivocally suggests that the 21st century is poised to be the Indian century. India would once again contribute a major share to the world economy just like it used to do centuries ago. Of course, this would mean that the Indian economy continues at its current growth rate. For this to happen we need constant reforms and take the right policy decisions which would stimulate the economy, otherwise, there is always a danger of falling into a middle-income trap.

The above scenario is indeed a cause for jubilation. However, before we rush to celebrate, we must take a closer look at the other side of the coin. India’s per capita income today stands at USD 2,601, or USD 9,073 in terms of PPP. This places India among the world’s lowest, with a global ranking of 128th in terms of per capita income. This fact should be a cause for concern and should humble us, making us realise that we need to grow at a much faster rate if we intend to provide our citizens with a quality of life comparable to that offered by middle-income countries. It is indeed chastening to note that the per capita income of the USA is approximately USD 80,000, China’s is USD 13.72 thousand, Germany’s is USD 51.38 thousand, the United Kingdom’s is USD 46.31 thousand, and Japan’s is USD 35.39 thousand.

It is now being recognised by all that GDP, by itself, is the most imperfect measure of economic development, as it conceals more than it reveals. Maximising growth alone does not necessarily enhance human well-being. As Robert Kennedy famously said, GDP does not measure anything that makes life worthwhile. Per capita income gives a far better appreciation of the level of economic development, and when we consider this factor, it becomes evident that India has a long way to go.

The country must focus on holistic development of its citizens. To achieve this, indicators such as HDI (Human Development Indicator) and GNH (Gross National Happiness) hold more relevance in assessing the quality of life for the people. Incidentally, India ranks at the bottom of the list in both these indicators globally. While we may be tempted to become defensive and question the methodology and motives behind these rankings, we cannot ignore the reality. These indicators include measures of health, education, nutrition and others, and there is no escaping the fact that we perform poorly in these attributes as compared to other countries.

The fortunate aspect is that we possess a large youth population which, if properly harnessed, will yield significant demographic dividends. However, we must also be concerned because the flip side is that this advantage can potentially turn into a disaster. To avert such a situation, we need to provide our youth with gainful employment where their full potential is realised, and they make substantial contributions to boosting productivity in the economy. Unfortunately, India’s growth story over the last decade or so has been characterised by jobless growth, and this trend requires immediate reversal. Generation of employment has to occupy the pole position in our priorities. The youth must be made ready for jobs by providing them a high quality of education, skill development and proper healthcare. Our transformation to a developed economy is only possible if we develop and utilise our human resource potential to the maximum extent.

India is still an agriculture-dominated economy and this sector also requires the highest attention of our policy planners. If the farmer is not economically empowered, then the economy will not be able to move to a path of high sustainable development. Furthermore, the MSME sector needs a lot of hand holding if it has to grow and provide employment. Physical infrastructure like roads and power should continue to provide the launching pad for a high trajectory of growth. Women must become equal partners in the process of growth.

While we have attained the status of the fifth-largest economy, we must take a series of urgent steps in the aforementioned areas if we aim to fulfil our vision of becoming a developed economy by 2047. The government and its policy planners must maintain an unwavering focus on the holistic development of the country’s citizens, ensuring they enjoy a high quality of life and well-being.

Urban misgovernance, illegal encroachments, and fast-depleting urban water bodies are the root causes behind the massive deluge faced by major Indian cities

All of us have been concerned by the pictures of major cities, including the national capital of Delhi, being flooded by heavy monsoon showers. A blame game is going on, and it is being said that there has been unusually extreme heavy rainfall that the drainage system was not geared to handle. Undeniably, the rainfall has been excessive, perhaps the heaviest downpour in a day, breaking records of over 40 years. However, making this an excuse for an unprepared drainage system is not acceptable. Climate change has given rise to unpredictable climate issues, and the last several years have witnessed heavy rainfall getting concentrated within a couple of days. The system should have anticipated and been ready for this. Better planning and proactive measures are the answers to this kind of situation.

In any case, it was distressing to see the national capital of Delhi being deluged by the rains, with water flowing above knee level. In the past two decades, we have seen similar flooding take place in cities like Mumbai, Chennai, Kolkata, Hyderabad, and Ahmedabad. The main causes of this phenomenon are illegal encroachments, inadequate stormwater drainage capacity, the disappearance of urban wetlands, which used to function as natural drains, and the tendency of solid waste being dumped into the drains and clogging them. Stormwater drains are an essential part of urban infrastructure, yet my experience of working in the urban development department has been that it is perhaps the most unglamorous activity and receives the least attention from urban governments. In many cities, stormwater drains were constructed almost 100 years ago and are now in no position to handle the increase in the intensity of rainfall brought about by the vagaries of climate change. The Government of India is aware of this problem and has issued detailed guidelines to upgrade these stormwater drains, but either due to a paucity of funds, lack of technical knowledge, or simply a careless approach, these guidelines have not been implemented in many cities.

Strange as it may sound, many cities do not have proper drainage maps that show the location, gradient, and outflow of these drains. How can we talk of having smart cities if we do not have an idea of the drainage system? Interestingly, I recall when I was the Municipal Commissioner of Allahabad in the late 1980s, there was an area in the city that used to get heavily waterlogged during every monsoon. On enquiring and delving into the details, I was amazed to find that in several portions, the drain was sloping in the wrong direction, leading to the accumulation of water. This was not an isolated incident; similar situations could be present in many cities and require a detailed inspection of the drainage system.

Every year before the monsoon, elaborate instructions are issued for cleaning the drains so that the garbage in the drains is taken out and the drains are desilted. Unfortunately, despite huge amounts of money being spent, this activity never gets done properly due to collusion between the Municipal staff and the contractors, or simply because of poor supervision and monitoring. Sometimes, the silt taken out of the drains is stacked on the side of the drain and conveniently finds its way back into the drain with the very first monsoon shower. To complicate the matter, there are several areas that are unauthorized or informal and do not have drains or sewers, and the water has no place to go. In many places, particularly in market areas, the drains have been encroached upon, leading to the accumulation of water and flooding of the roads.

Most of the cities have historically had urban wetlands that provide a natural avenue for water to flow into. These urban wetlands have disappeared at an alarming pace, replaced by concrete structures that block the natural flow of water. Lucknow Municipal Corporation had 964 ponds in 1952, but only 494 remained in 2006, and the figure must have substantially reduced by now. Bangalore had 260 lakes in the 1960s, but only 80 remained in 2019. Devashish Dhar, in his book on managing our cities, has quoted ADB experts as saying that between 1970 and 2014, Mumbai lost 71 per cent of its wetlands, Hyderabad 55 per cent, NCR Delhi 38 per cent, Ahmedabad 57 per cent, and Greater Bangalore 56 per cent. Obviously, this means that we have lost out on the natural water regulation and flow in a big manner. We must urgently attend to rejuvenating urban water bodies, which recharge the groundwater and also assist in absorbing rainwater.

The causes are well known, as are the measures to be taken to redress this problem. However, it requires a strong will on the part of the government and also funds. The issue is not only a technical one but ultimately one of reforming urban finances and urban governance. The focus has to be on urban planning and innovative ways of developing infrastructure and financing.

For example, the city of Kuala Lumpur has constructed a huge stormwater drain and road tunnel that carries a large amount of water from the city to a storage reservoir, protecting the city from flash floods. Similarly, China has started a “sponge city” initiative under which, by 2030, chosen districts will be able to capture, reuse, and absorb 80 per cent of the stormwater runoff.

The root cause of the problem is urban governance, which needs to be addressed urgently. The 73rd and 74th Constitutional amendments took a huge stride in this direction, but the States have not been forthcoming in implementing the constitutional amendments in letter and spirit. Both the politicians and the bureaucrats are responsible for this. The MLAs and MPs do not want to share political space with the local body elected representatives like the Mayor and Chairman of Municipalities, and the bureaucrats resent any reform which they perceive as bringing about a reduction in their authority. Janaagraha, an NGO that has done excellent work in the area of urban development, carried out an annual survey of Indian city systems to assess the quality of governance in selected Indian cities. The benchmark cities for this survey, London and New York, scored as high as 9.3 and 9.8, respectively, while the Indian cities scored an average of 3.5, showing the poor state of governance in Indian cities.

If we have to address the problems of drainage, sewerage, solid waste management, urban transport, urban pollution, or slum development, then the topmost priority has to be given to urban governance reforms. The Mayor and the councillors need to be empowered and held accountable. There is a need for sustained effort to build their capacities. Senior civil servants with the right kind of aptitude need to be selected to serve in urban Municipal corporations for a reasonable tenure. A cadre of city managers is required with the right kind of qualifications and training. Similarly, a separate competent cadre of engineers and other technical personnel, such as waste management experts, is required to be developed.

Funds, functions, and functionaries must be transferred to the local bodies, and grassroots democracy in the cities should be strengthened to ensure accountability. Parastatals like development authorities must, sooner or later, cede space to the municipal corporation. The cities must generate sufficient resources of their own, and there should be a larger devolution of funds from the States to the urban local bodies. Technology must become an essential ingredient of urban government. If serious thinking on these issues is done, policies formulated, and implemented, then our cities can surely become engines of growth, providing a high quality of life to its citizens.

The writer is an ex-Chief Secretary, Govt of Uttar Pradesh. Views expressed are personal.

Urban misgovernance, illegal encroachments, and fast-depleting urban water bodies are the root causes behind the massive deluge faced by major Indian cities

All of us have been concerned by the pictures of major cities, including the national capital of Delhi, being flooded by heavy monsoon showers. A blame game is going on, and it is being said that there has been unusually extreme heavy rainfall that the drainage system was not geared to handle. Undeniably, the rainfall has been excessive, perhaps the heaviest downpour in a day, breaking records of over 40 years. However, making this an excuse for an unprepared drainage system is not acceptable. Climate change has given rise to unpredictable climate issues, and the last several years have witnessed heavy rainfall getting concentrated within a couple of days. The system should have anticipated and been ready for this. Better planning and proactive measures are the answers to this kind of situation.

In any case, it was distressing to see the national capital of Delhi being deluged by the rains, with water flowing above knee level. In the past two decades, we have seen similar flooding take place in cities like Mumbai, Chennai, Kolkata, Hyderabad, and Ahmedabad. The main causes of this phenomenon are illegal encroachments, inadequate stormwater drainage capacity, the disappearance of urban wetlands, which used to function as natural drains, and the tendency of solid waste being dumped into the drains and clogging them. Stormwater drains are an essential part of urban infrastructure, yet my experience of working in the urban development department has been that it is perhaps the most unglamorous activity and receives the least attention from urban governments. In many cities, stormwater drains were constructed almost 100 years ago and are now in no position to handle the increase in the intensity of rainfall brought about by the vagaries of climate change. The Government of India is aware of this problem and has issued detailed guidelines to upgrade these stormwater drains, but either due to a paucity of funds, lack of technical knowledge, or simply a careless approach, these guidelines have not been implemented in many cities.

Strange as it may sound, many cities do not have proper drainage maps that show the location, gradient, and outflow of these drains. How can we talk of having smart cities if we do not have an idea of the drainage system? Interestingly, I recall when I was the Municipal Commissioner of Allahabad in the late 1980s, there was an area in the city that used to get heavily waterlogged during every monsoon. On enquiring and delving into the details, I was amazed to find that in several portions, the drain was sloping in the wrong direction, leading to the accumulation of water. This was not an isolated incident; similar situations could be present in many cities and require a detailed inspection of the drainage system.

Every year before the monsoon, elaborate instructions are issued for cleaning the drains so that the garbage in the drains is taken out and the drains are desilted. Unfortunately, despite huge amounts of money being spent, this activity never gets done properly due to collusion between the Municipal staff and the contractors, or simply because of poor supervision and monitoring. Sometimes, the silt taken out of the drains is stacked on the side of the drain and conveniently finds its way back into the drain with the very first monsoon shower. To complicate the matter, there are several areas that are unauthorized or informal and do not have drains or sewers, and the water has no place to go. In many places, particularly in market areas, the drains have been encroached upon, leading to the accumulation of water and flooding of the roads.

Most of the cities have historically had urban wetlands that provide a natural avenue for water to flow into. These urban wetlands have disappeared at an alarming pace, replaced by concrete structures that block the natural flow of water. Lucknow Municipal Corporation had 964 ponds in 1952, but only 494 remained in 2006, and the figure must have substantially reduced by now. Bangalore had 260 lakes in the 1960s, but only 80 remained in 2019. Devashish Dhar, in his book on managing our cities, has quoted ADB experts as saying that between 1970 and 2014, Mumbai lost 71 per cent of its wetlands, Hyderabad 55 per cent, NCR Delhi 38 per cent, Ahmedabad 57 per cent, and Greater Bangalore 56 per cent. Obviously, this means that we have lost out on the natural water regulation and flow in a big manner. We must urgently attend to rejuvenating urban water bodies, which recharge the groundwater and also assist in absorbing rainwater.

The causes are well known, as are the measures to be taken to redress this problem. However, it requires a strong will on the part of the government and also funds. The issue is not only a technical one but ultimately one of reforming urban finances and urban governance. The focus has to be on urban planning and innovative ways of developing infrastructure and financing.

For example, the city of Kuala Lumpur has constructed a huge stormwater drain and road tunnel that carries a large amount of water from the city to a storage reservoir, protecting the city from flash floods. Similarly, China has started a “sponge city” initiative under which, by 2030, chosen districts will be able to capture, reuse, and absorb 80 per cent of the stormwater runoff.

The root cause of the problem is urban governance, which needs to be addressed urgently. The 73rd and 74th Constitutional amendments took a huge stride in this direction, but the States have not been forthcoming in implementing the constitutional amendments in letter and spirit. Both the politicians and the bureaucrats are responsible for this. The MLAs and MPs do not want to share political space with the local body elected representatives like the Mayor and Chairman of Municipalities, and the bureaucrats resent any reform which they perceive as bringing about a reduction in their authority. Janaagraha, an NGO that has done excellent work in the area of urban development, carried out an annual survey of Indian city systems to assess the quality of governance in selected Indian cities. The benchmark cities for this survey, London and New York, scored as high as 9.3 and 9.8, respectively, while the Indian cities scored an average of 3.5, showing the poor state of governance in Indian cities.

If we have to address the problems of drainage, sewerage, solid waste management, urban transport, urban pollution, or slum development, then the topmost priority has to be given to urban governance reforms. The Mayor and the councillors need to be empowered and held accountable. There is a need for sustained effort to build their capacities. Senior civil servants with the right kind of aptitude need to be selected to serve in urban Municipal corporations for a reasonable tenure. A cadre of city managers is required with the right kind of qualifications and training. Similarly, a separate competent cadre of engineers and other technical personnel, such as waste management experts, is required to be developed.

Funds, functions, and functionaries must be transferred to the local bodies, and grassroots democracy in the cities should be strengthened to ensure accountability. Parastatals like development authorities must, sooner or later, cede space to the municipal corporation. The cities must generate sufficient resources of their own, and there should be a larger devolution of funds from the States to the urban local bodies. Technology must become an essential ingredient of urban government. If serious thinking on these issues is done, policies formulated, and implemented, then our cities can surely become engines of growth, providing a high quality of life to its citizens.

27^th of June is celebrated as the national MSME day. MSME’s not only play a crucial role in the economic scenario of India but are of great global relevance. According to the World Bank small and medium enterprises play a major role in most economies of the world and particularly in developing countries. They represent 90% of global businesses and contribute to more than 50% of the employment. The World Bank estimates that around 600 million jobs would be needed by 2030 to absorb the growing global work force which makes the development of SME sectors a priority for most governments. In India the MSME sector has emerged as a highly vibrant and dynamic one. It provides large employment opportunities at comparatively lower capital cost than large industries and is a important vehicle of industrialization of rural and backward areas. The MSME sector in India contributes about 29% of GDP and 31.83% of Gross value add. It also contributes 48.10% to exports and creates employment for almost 11 crore people. It is clear that MSMEs are the growth engine for the Indian economy.

There have been different definitions of MSME sector from time to time but the latest one is applicable from 1^st July, 2020. Now any industry having investment in plant and machinery upto rupees 50 crore and annual turnover not more than 250 crore qualifies as being a MSME. The limits have presumably been expanded on the request of certain sections of industry with the idea of bringing more units under the ambit of MSME and also taking advantage of economies of scale. However, to my mind this new definition compromises the interest of the micro sector which accounts for 99.47% of the total units under MSME and provides 96.96% of employment. A micro industry is defined as one having investment up to Rs. 1 crore and turnover less than 10 crore. It creates a situation where the larger units in MSME corner all the benefits of the various government schemes. The highest numbers of MSME are in the state of Uttar Pradesh, which is 14% of the total. The employment generated by MSMEs is almost equal for manufacturing, trade and other services.

Despite its obvious importance to the Indian economy, the MSME sector continuous to face several challenges like availability of adequate and timely credit, high cost of credit, collateral requirements, retention of skilled people and access to equity capital and rehabilitation of sick enterprises etc. Most of the micro units are not registered or mapped which constraints the ability of the government to develop them. Further, one of the biggest hurdles is the lack of financing as most banks and financial institutions are reluctant to meet the credit needs of the MSME sectors. This may be because of their past experience of a high ratio of bad loans. In addition, the MSME sector suffers from a huge delay in payments made to them including from the government and others. Since most of the MSME units are in the unorganized sector there is a lack of reliable and updated data base. Moreover, because of its poor paying capacity, this sector faces shortage of skilled man power resulting in not being able to have the desired managerial capabilities.

Since, most of the units in MSME belong to the micro sector, it is this sector which plays a major role in generation of new employment. We are all aware that India has the largest number of people in the working age and more and more young people are becoming ready for employment. Today, the biggest challenge that the Indian economy faces is creating enough employment to absorb the youth entering the labor force. It is essential that the right kind of focus and emphasis be given to the micro sector. It is recommended that a special cell for the micro within MSME sector should be created so that the problems of this sector are addressed.

There is no doubt that government of India and the state governments have introduced numerous schemes for the development of the MSME sector. To provide technical education to MSME sector the government has introduced the technology centre system programmes under which technology centers have been developed for giving technical education and support to MSME. Steps have also been taken to register these units in an easy manner on various digital platforms. The MUDRA (micro unit development and refinancing limited) is also a significant step in providing employment to the small entrepreneur. There are schemes like credit guarantee scheme which was especially announced as a relief during the Covid period and then there is PMEGP (prime minister Employment generation programme). The state governments have also introduced their own schemes like ODOP (one district one product) that has been introduced by UP government. To enable the MSME sector to get the benefit of the schemes the government has assured a single window clearance thereby ensuring that the entrepreneur does not have to run from one department to another to get the requisite permissions. The governments have also been giving capital subsidy, interest subsidy, GST refund and reduction in stamp duty. Several state governments have prescribed up to 20 to 25 % preference given to MSME sector in government purchases.

One finds that there is lack of awareness amongst the MSME entrepreneurs about the plethora of government schemes which have been formulated for their benefit. Moreover, even if they know about a scheme they are not able to access the benefits as they do not have the required skill set to do so. As a beginning, large scale efforts need to be made to make the entrepreneurs aware of government scheme and also to train them so that they know how to apply for various schemes, what documents are to be furnished etc. A continuous process of handholding is required, particularly, for the micro sector.

If the micro sector and the entire range of MSME have to play their important role in the Indian economy then certain steps need to be taken on priority. To begin with the definition of MSME sector needs to be relooked in to. At least a certain percentage in all government schemes should be reserved for the micro sector to enable them to take benefits of the opportunities. If separate targets are fixed for the micro sector then the bankers also will not be reluctant to extend credit to them. One of the major problems plaguing the MSME sector is that of pending payments. The government of India has announced that payments would be made within 45 days but this is not happening in reality. There is great requirement to establishing a payment recovery tribunal for MSMEs to ensure this. In the preferences purchase policy of the government the 25 % purchase from MSME sector must be made a reality and it should be seen that on fabricated grounds of poor quality this benefit is not denied to them. Once again a separate quota is required for the micro sector in this policy. Most of the governments are now making purchases through the digital GEM Portal which has several advantages and acts as a check on corruption. However, even here in actual practice things work against the interests of the MSME sector as the tender specifications are often designed in a manner that tends to favor some large enterprise and tends to exclude the MSME sector from its ambit. A major capacity building programme for MSME sector should be launched. Having an escrow mechanism to ensure payments to MSMEs from government should also be considered. Above all to enable the MSME sector to get funds from the market there is a need for a separate MSME stock exchange to be developed.

The governments keep focusing on bringing in new investments and setting up new units and no attention in paid to the grievances of the existing units. A framework to redress the grievances needs to be formulated and a policy is required for the revival and rehabilitation of sick MSMEs. Finally, a proper MSME data bank must be developed in order to formulate the right kind of polices and channelize their benefits to the MSME sector.

In conclusion, one must appreciate the attention being given to MSME sector both at the central government level and in the state governments. However, this sector still remains challenged and persistence and greater efforts are required to make this sector viable to allow it to fulfill the role of being the growth engine of economy.