Tuesday, September 9, 2008

Indian economy and Villages impact..

Concept : Improving the non-agricultural economy.

Last week I have discussed this topic with my Navodayan colleagues.

(Suresh.p, Pradeep, Mohan reddy, Sekar, and Parthu). Let me explain it here.

Before elaborating on the concept, here are few things to look at.

=> GDP growth for this year in Inidia is 9.1% (stood second after chaina)
which indicates Indian economy has rapid growth in recent years.

But according to Worldbank statistics, India is still in Low-income economy state.
This is because, Per capita income ( means how much each individual receives, in monetary

terms, of the yearly income generated in the country)
=> per capita income is still (978 $)

Reason for this is,
two-thirds of the Indian workforce still earn their livelihood directly or indirectly through agriculture.
So, even though the areas where other 1/3rd workforce is working, is getting drastic
improvements(eg: manufacturing, pharmaceuticals, biotechnology, nanotechnology, telecommunication, shipbuilding, aviation ,
tourism and retailing ), economy will still not have good impact if you see from atop(as the other 2/3rd part is not getting good
amount of improvement).
Improvement in only 1/3rd area and not concentrating on 2/3rd area is making the gap still big between poor and rich.

If we question ourself why agricultural field is failing to give good economy growth,
then every one will find their own answers. But if we see at the flip side of this issue,
we can come up with some good way to improve the economy from farming based people (esp villagers).

One such kind of solution that we can come up , which I can better explain by some real time example.

Suppose the rainfall is very less in a given year in perticular area.
and say most of the farms are totally dependent on rain. In such case farmers will be left with options of
- go to towns/cities for part time jobs for their earnings.
- work as laborers for others for some or other work.
- sleep empty stomach.

One of the solutions for above issues: (Explained in phases)

Phase 1 :-

1. Explain the people in villages the need of improving their economy.
2. Explain them how improving their economy will improve/boost their lives.
3. Collect their area of interests in different work areas apart from farming.
4. gather interested candidates in the first go. (Later on more ppl will join according to their interests.)
5. establish a workshop there to give them hands on work experience with experts.
6. Maintain a centralized web based data base to keep update with these info.
So that it would be useful to
a. maintain and keep track the work and issues.
b. have proper proof to convince private and govt sectors.
c. can be given to media to boost of such kind of projects slowly all over.

Phase 2 :-

1. collaborate with corporate and government to have continuous cash flow for workshops.
2. collaborate with different firms (depending on which area we are providing training to the people), to establish small branches
near to the workshop to provide them with money yielding projects.

Phase 3 :-

1. Once our project succed , will start establishing same kind of workshops all over.

Please let me know your
views, critics, better way to proceed, set backs enroute to this goal.


Best regards,
Satish.p