Productivity differences, technology adoption and economic growth : the case of India

When the acronym of ëBRICí was coined in 2001 by Jim OíNeill of Goldman Sachs, it was expected that economic growth rates in India, Brazil and Russia would eventually catch up with that of China. However, China has continued to outperform the other economies in the group, even after it was renamed ëBRICSí to reflect the inclusion of South Africa in 2010. The focus of this chapter is on one of the BRICS economies, namely India. Its aim is to examine from an economic perspective, why Indiaís performance has not lived up to expectations, and comment on the key challenges it faces in meeting them. We begin with some descriptive statistics regarding the progress of the Indian economy since 1990. While it has been growing at a rapid rate since the reforms it introduced in the1990s, there has been a slowdown in its overall GDP growth rates since 2008. The rate of growth experienced in the period 2003ñ07 was an average of 10.5 per cent. However, since the recession following the Global Financial Crisis (GFC) of 2008, the growth rate has fallen. From the period 2008ñ12 it has only registered an average growth rate of 6.5 per cent (World Bank, 2013). This chapter suggests that one of the major factors underpinning this slowdown is the performance of Indiaís agricultural sector. The importance of the agricultural sector is highlighted by the following stylized facts.

India's vocational education capacity to support the anticipated economic growth

The buoyancy that the Indian economy experienced between 2000 and 2010, in spite of the global downturn of 2008, is no longer a reality. Growth projections for 2012-13 have been reassessed to 6.5 per cent. This is still higher than most other developed economies of the world (see Figure 1.1), however the growth rate is slowing. The World Bank in its recent forecasts1 expects India’s growth rates not to extend beyond 7.2 % and 7.4 % in the years 2013-14 and 2014-15, respectively. Similarly, the Planning Commission has scaled down the growth target for the 12th Five Year Plan (2012-17) from 9% to 8%. Different reports note different rates, but the consistent message is that the projection of India’s economy is on a downward trend...

The challenge to know and control: Disease outbreak surveillance and alerts in China and India

Since the revisions to the International Health Regulations (IHR) in 2005, much attention has been turned to how states, particularly developing states, will address core capacity requirements. The question often examined is how states with poor health systems can strengthen their capacity to identify and verify public health emergencies of international concern. A core capacity requirement is that by 2012 states will have a surveillance and response network that operates from the local community to the national level. Much emphasis has turned to the health system capacity required for this task. In this article, I seek to understand the political capacity to perform this task. This article considers how the world's two most populous states,1 1. For the purposes of this paper, I use the word ‘state’ as a shorthand for the nation-state of China and India, or member state as used by the United Nations. View all notes China and India, have sought to communicate outbreak events in times of crisis and calm. I consider what this reporting performance tells us of their capacity to meet their IHR obligations given the two countries differing political institutions.

An examination of microfinance self-help groups and the poorest of the poor women in Tamil Nadu, India

This study examined the formation and operation of women's microfinance self-help groups in southern India and investigated whether or not the poorest of the poor women were accepted as members of those groups. The study found that caste was used as a selection criterion. Many eligible women excluded themselves from joining the self-help group due to their own lack of education, age, poor health, poverty and lack of trust in the system. The research revealed that self-help groups enhanced women's income and education, improved village infrastructure, and reduced household conflict. Factors that might prevent inclusion of the poorest of the poor in future microfinance programs were identified.

Productivity and convergence in India : a state-level analysis

Total factor productivity plays an important role in the growth of the Indian economy. Using state-level data from 1993 to 2005 that were recently made available, we find widespread regional variation in productivity changes. In the years immediately following economic liberalization, productivity growth improved technical efficiency; however, in subsequent years, productivity growth was propelled by technological progress. We find a tendency toward convergence with regard to productivity growth among states; however, the states that were technically efficient when the economic reforms were instituted remained innovative in later years.

Non-separability and substitutability among water pollutants : evidence from India

The design and implementation of environmental policy often involve more than one pollutant, and must consider pollution as a byproduct of the production of marketable output. In this paper, we test the implicit assumption in the empirical literature that (1) production of marketable output, pollution and abatement are separable, and (2) different pollutants can be abated separately. Using unique plant-level data in India, we reject the null hypotheses of separability between marketable output and pollutants, and between different pollutants. Firms must incur abatement costs for reducing pollution levels. In addition, complement and substitute relationships between water pollutants are demonstrated with statistical significance.

On the effectiveness of a license scheme for E-waste recycling : the challenge of China and India

It is well known that China and India have been recycling centers of WEEE, especially printed circuit boards, and that serious environmental pollution in these countries has been generated by improper recycling methods. After the governments of China and India banned improper recycling by the informal sector, improper recycling activities spread to other places. Then, these governments changed their policies to one of promoting proper recycling by introducing a scheme, under which E-waste recycling requires a license issued by the government. In this paper, the effectiveness of that license scheme is examined by means of an economic model. It can be shown that the license scheme can work effectively only if disposers of E-waste have a responsibility to sell E-waste to license holders. Our results run counter to the idea that international E-waste trade should be banned and provide an alternative solution to the problem.

Compensation for environmental services and intergovernmental fiscal transfers : the case of India

This paper studies mechanisms to compensate local government for the public provision of environmental services using the theory of optimal fiscal transfers in India. Especially, we analyzed the role of intergovernmental fiscal transfers in achieving the environmental goal. Simply assigning the functions at appropriate levels does not ensure optimal provision of environmental services. Optimality in resource allocation could be achieved by combining the assignment system with an appropriate compensation mechanism. Intergovernmental fiscal transfers would be a suitable mechanism for compensating the local governments and help in internalizing the spillover effects of providing environmental public goods. Illustrations are also provided for India.

Environmental productivity and Kuznets curve in India

As a result of India's extremely rapid economic growth, the scale and seriousness of environmental problems are no longer in doubt. Whether pollution abatement technologies are utilized more efficiently is crucial in the analysis of environmental management because it influences the cost of alternative production and pollution abatement technologies. In this study, we use state-level industry data of sulfur dioxide, nitrogen dioxide, and suspended particular matter over the period 1991-2003. Employing recently developed productivity measurement technique, we show that overall environmental productivities decrease over time in India. Furthermore, we analyze the determinants of environmental productivities and find environmental Kuznets curve type relationship existences between environmental productivity and income. Panel analysis results show that the scale effect dominates over the technique effect. Therefore, a combined effect of income on environmental productivity is negative.

Life-course determinants of bone mass in young adults from a transitional rural community in India: The Andhra Pradesh Children and Parents Study (APCAPS)

Background: Undernutrition and physical inactivity are both associated with lower bone mass. Objective: This study aimed to investigate the combined effects of early-life undernutrition and urbanized lifestyles in later life on bone mass accrual in young adults from a rural community in India that is undergoing rapid socioeconomic development. Design: This was a prospective cohort study of participants of the Hyderabad Nutrition Trial (1987–1990), which offered balanced protein-calorie supplementation to pregnant women and preschool children younger than 6 y in the intervention villages. The 2009–2010 follow-up study collected data on current anthropometric measures, bone mineral density (BMD) measured by dual-energy X-ray absorptiometry, blood samples, diet, physical activity, and living standards of the trial participants (n = 1446, aged 18–23 y). Results: Participants were generally lean and had low BMD [mean hip BMD: 0.83 (women), 0.95 (men) g/cm2; lumbar spine: 0.86 (women), 0.93 (men) g/cm2]. In models adjusted for current risk factors, no strong evidence of a positive association was found between BMD and early-life supplementation. On the other hand, current lean mass and weight-bearing physical activity were positively associated with BMD. No strong evidence of an association was found between BMD and current serum 25-hydroxyvitamin D or dietary intake of calcium, protein, or calories. Conclusions: Current lean mass and weight-bearing physical activity were more important determinants of bone mass than was early-life undernutrition in this population. In transitional rural communities from low-income countries, promotion of physical activity may help to mitigate any potential adverse effects of early nutritional disadvantage.

Using conceptual tool for intuitive interaction to design intuitive website for SME in India : A case study

Statistical reports of SMEs Internet usage from various countries indicate a steady growth. However, deeper investigation of SME’s e-commerce adoption and usage reveals that a number of SMEs fail to realize the full potential of e-commerce. Factors such as lack of tools and models in Information Systems and Information Technology for SMEs, and lack of technical expertise and specialized knowledge within and outside the SME have the most effect. This study aims to address the two important factors in two steps. First, introduce the conceptual tool for intuitive interaction. Second, explain the implementation process of the conceptual tool with the help of a case study. The subject chosen for the case study is a real estate SME from India. The design and development process of the website for the real estate SME was captured in this case study and the duration of the study was four months. Results indicated specific benefits for web designers and SME business owners. Results also indicated that the conceptual tool is easy to use without the need for technical expertise and specialized knowledge.

Child rights as perceived by the community members in India

Attitudes, knowledge, and perceptions of an individual influence their behavior as well as culture of a society. The objective of the study was to understand the attitudes and knowledge of 584 Indian community members regarding child rights and their perceptions about whether selected child rights were secured in reality. Overall attitudes of vast majority (96 – 98%) of the participants towards child rights were found to be positive i.e., children should have rights in various respects except issue like right to meet others (Article 15 of CRC). Knowledge of majority of the participants about child rights related legislations was moderate and varied across the cities while participants were unanimous about poor lived experiences of child rights in reality. So far as attitude and perception are concerned about child rights, there was a significant difference in the distribution between cities (p<0.01). Overall, the Rights of Children to Free and Compulsory Education Act, 2009 had the highest awareness (91.3%, n=533), followed by the Child Labour (Prohibition and Regulation) Act, 1986 (89.7%, n=523) and the Prohibition of Child Marriage Act, 2006 (89.6%, n=523). Findings of the present study speak in favor of community awareness about child rights and penalties for violation of child rights.