tag:blogger.com,1999:blog-5848640164815342479.post8899226486967933574..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: India Is Among The World's Most Unequal CountriesRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger38125tag:blogger.com,1999:blog-5848640164815342479.post-54533851359545841462023-07-03T13:44:52.032-07:002023-07-03T13:44:52.032-07:00Income of poorest fifth plunged 53% in 5 yrs; thos...Income of poorest fifth plunged 53% in 5 yrs; those at top surged | India News,The Indian Express<br /><br />https://indianexpress.com/article/india/income-of-poorest-fifth-plunged-53-in-5-yrs-those-at-top-surged-7738426/<br /><br />In a trend unprecedented since economic liberalisation, the annual income of the poorest 20% of Indian households, constantly rising since 1995, plunged 53% in the pandemic year 2020-21 from their levels in 2015-16. In the same five-year period, the richest 20% saw their annual household income grow 39% reflecting the sharp contrast Covid’s economic impact has had on the bottom of the pyramid and the top.<br /><br /><br />---------------<br /><br /><br />A new survey, which highlights the economic impact of the pandemic on Indian households, found that the income of the poorest 20 percent of the country declined by 53 percent in 2020-21 from that in 2015-16.<br /><br />https://www.thequint.com/news/india/poor-in-india-lose-half-their-income-in-last-5-years-rich-got-richer-survey#read-more<br /><br />The survey, conducted by the People's Research on India's Consumer Economy (PRICE), a Mumbai-based think tank, also shows that in contrast, the same period saw the annual household income of the richest 20 percent grow by 39 percent.<br /><br />Conducted between April and October 2021, the survey covered 20,000 households in the first stage, and 42,000 households in the second stage. It spanned over 120 towns and 800 villages in 100 districts.<br /><br /><br /><br />Income Erosion in All Households Except the Rich Ones<br />The survey indicated that while the poorest 20 percent households witnessed an income erosion of 53 percent, the lower-middle-class saw a 39-percent decline in household income. The income of the middle-class, meanwhile, reduced by 9 percent.<br /><br />However, the upper-middle-class and richest households saw their incomes rise by 7 percent and 39 percent, respectively.<br />The survey also showed that the richest households, on an average, accumulated more income per household as well as pooled income in the past five years than any other five-year period since liberalisation.<br /><br />While the richest 20 percent accounted for 50.2 percent of the total household income in 1995, the survey shows that their share jumped to 56.3 percent in 2021. In contrast, the share of the poorest 20 percent dropped from 5.9 percent to 3.3 percent in the same period.<br /><br /><br /><br />While 90 percent of the poorest 20 percent in 2016 lived in rural India, the figure dropped to 70 percent in 2021. In urban areas as well, the share of the poorest 20 percent households went from 10 percent in 2016 to 30 percent in 2021.<br /><br />"The data reflects that casual labourers, petty traders, household workers, among others, in Tier 1 and Tier 2 cities got hit the most by the pandemic. During the survey, we also noticed that while in rural areas, people in the lower middle income category (Q2) moved to the middle income category (Q3), in the urban areas, the shift has been downwards, from Q3 to Q2. In fact, the rise in poverty level of the urban poor has pulled down the household income of the entire category," reported The Indian Express, quoting Rajesh Shukla, MD and CEO of PRICE.<br /><br />Most Middle-Class Breadwinners Are Illiterate or Have Primary Schooling<br />The survey further shows that while a majority of the breadwinners in 'Rich India' (top 20 percent) have completed high-school education (60 percent, of which 40 percent are graduates and above), nearly half of 'Middle India' (60 percent) only have primary education.<br /><br />As for the bottom 20 percent, 86 percent are either illiterate or just have primary education. Only 6 percent are graduates and above.<br /><br />(With inputs from The Indian Express, ICE360 2021 Survey.)<br /><br />(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-46170946774219563962023-07-02T19:19:23.962-07:002023-07-02T19:19:23.962-07:00Vulnerable employment, total (% of total employmen...Vulnerable employment, total (% of total employment) (modeled ILO estimate) - Pakistan, India | Data<br /><br /><br />Bangladesh 54%<br /><br />Pakistan 54%<br /><br />India 74%<br /><br />https://data.worldbank.org/indicator/SL.EMP.VULN.ZS?locations=PK-IN-BD<br /><br /><br />------------<br /><br />Sandeep Manudhane<br />@sandeep_PT<br />Why the size of the economy means little<br />a simple analysis<br /><br />1) We are often told that India is now a $3.5 trillion economy. It is growing fast too. Hence, we must be happy with this growth in size as it is the most visible sign of right direction. This is the Quantity is Good argument.<br /><br />2) We are told that such growth can happen only if policies are right, and all engines of the GDP - consumption, exports, investment, govt. consumption - are doing their job well. We tend to believe it.<br /><br />3) We are also told that unless GDP grows, how can Indians (on average) grow? Proof is given to us in the form of 'rising per capita incomes' of India. And we celebrate "India racing past the UK" in GDP terms, ignoring that the average Indian today is 20 times poorer than the average Britisher.<br /><br />4) All this reasoning sounds sensible, logical, credible, and utterly worth reiterating. So we tend to think - good, GDP size on the whole matters the most.<br /><br />5) Wrong. This is not how it works in real life.<br /><br />6) It is wrong due to three major reasons<br />(a) Distribution effect<br />(b) Concentration of power effect<br />(c) Inter-generational wealth and income effect<br /><br />7) First comes the distribution effect. Since 1991, the indisputable fact recorded by economists is that "rich have gotten richer, and poor steadily stagnant or poorer". Thomas Piketty recorded it so well he's almost never spoken in New India now! Thus, we have a super-rich tiny elite of 2-3% at the top, and a vast ocean of stagnant-income 70-80% down below. And this is not changing at all. Do not be fooled by rising nominal per capita figures - factor in inflation and boom! And remember - per capita is an average figure, and it conceals the concentration.<br /><br />8) Second is the Concentration of power effect. RBI ex-deputy governor Viral Acharya wrote that just 5 big industrial groups - Tata, Birlas, Adanis, Ambanis, Mittals - now disproportionately own the economic assets of India, and directly contribute to inflation dynamics (via their pricing power). This concentration is rising dangerously each year for some time now, and all government policies are designed to push it even higher. Hence, a rising GDP size means they corner more and more and more of the incremental annual output. The per capita rises, but somehow magically people don't experience it in 'steadily improving lives'.<br /><br />9) Third is the Inter-generational wealth and income effect. Ever wondered why more than 90% of India is working in unstructured, informal jobs, with near-zero social security? Ever wondered why rich families smoothly pass on 100% of their assets across generations while paying zero taxes? Ever wondered how taxes paid by the rich as a per cent of their incomes are not as high as those paid by you and me (normal citizens)? India has no inheritance tax, but has a hugely corporate-friendly tax regime with many policies tailor-made to augment their wealth. Trickle down is impossible in this system. But that was the spiel sold to us in 1991, and later, each year! There is no incentive for giant corporates (and rich folks) to generate more formal jobs, as an ocean of underpaid slaves is ready to slog their entire lives for them. Add to that automation, and now, AI systems!<br /><br />SUMMARY<br />Sadly, as India's GDP grows in size, it means little for the masses because trickle-down is near zero. That is because new formal jobs aren't being generated at scale at all (which in itself is a big topic for analysis).<br />So, our Quantity of GDP is different from Quality of GDP.<br /><br /><br />https://twitter.com/sandeep_PT/status/1675421203152896001?s=20Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-22296600391399073382023-04-08T10:52:14.547-07:002023-04-08T10:52:14.547-07:00Why Prof. Ashoka Mody Believes India is Broken | P...Why Prof. Ashoka Mody Believes India is Broken | Princeton International<br /><br />https://international.princeton.edu/news/why-prof-ashoka-mody-believes-india-broken<br /><br /><br />I have long felt that that upbeat story is completely divorced from the lived reality of the vast majority of Indians. I wanted to write a book about that lived reality, about jobs, education, healthcare, the cities Indians live in, the justice system they encounter, the air they breathe, the water they drink. And when you look at India through that lens of that reality, the progress is halting at best and far removed from the aspirations of people and what might have been. India is broken in the sense that for hundreds of millions of Indians, jobs are hard to get, and education and health care are poor. The justice system is coercive and brutal. The air quality remains extraordinarily poor. The rivers are dying. And it's not clear that things are going to get better. Underlying that brokenness, social norms and public accountability have eroded to a point where India seems to be in a catch-22: Unaccountable politicians do not impose accountability on themselves; therefore, no one has an incentive to impose accountability for policy priorities that might benefit large numbers of people. The elite are happy in their gated first-world communities. They shrug their shoulders and say, “What exactly is the problem?”<br /><br />———<br /><br />Prof Ashoka Mody interviewed by Barkha Dutt<br /><br />https://www.youtube.com/watch?v=L8SEmML71KQRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-11877869274516596122023-03-04T20:20:15.117-08:002023-03-04T20:20:15.117-08:00"India is Broken" writes Princeton Econo..."India is Broken" writes Princeton Economist Ashoka Modi. Says #Indians, mostly illiterate and poor, hunger for freedom and prosperity but their politicians from #Nehru to #Modi have “betrayed the economic aspirations” of millions. #BJP https://www.wsj.com/articles/india-is-broken-review-the-difficult-future-for-a-giant-3f65612d?st=l40ilxogdhokc9y via @WSJBooks<br /><br />Ashoka Mody, who was for many years a senior economist at the International Monetary Fund, is the sort of quietly efficient global technocrat who retires to a professorship at a prestigious school—in his case, Princeton. Yet he’s different from his faceless ilk of briefcase-bearers in one astonishing way: 13 years ago, an attempt was made on his life. The alleged assailant, thought to have been passed over for a job at the IMF by Mr. Mody, shot him in the jaw outside his house in Maryland.<br /><br />He recovered with remarkable verve, his intellectual drive intact. Yet a mood of gloom and pessimism is unmistakable in “India Is Broken.” Today, 75 years after independence from Britain, Mr. Mody believes that India’s democracy and economy are in a state of profound malfunction. The book’s tale, he writes, “is one of continuous erosion of social norms and decay of political accountability.” You might add that it is also a tale of an audacious political experiment on the brink of failure.<br /><br />India started its post-independence journey, says Mr. Mody, as “an improbable democracy” whose citizens, mostly illiterate and poor, hungered for freedom and prosperity. Generations of Indian politicians—from Jawaharlal Nehru, the first prime minister, to Narendra Modi, the present one—have “betrayed the economic aspirations” of millions. India’s democracy no longer protects fundamental rights and freedoms in a nation over which “a blanket of violence” has fallen. A belief in “equality, tolerance and shared progress” has disappeared. And the country’s collapse isn’t just political and economic; it’s also moral and spiritual.<br /><br />------------<br /><br />A notable weakness in Mr. Mody’s analysis is his denial that the economic policies of Nehru and his successors were socialist. He writes of Nehru’s “alleged socialist legacy” and adds that it is a “mistake to identify central planning or big government as socialism.” Socialism, he insists, “means the creation of equal opportunity for all,” which India’s policy makers weren’t doing. Ergo, India wasn’t socialist.<br /><br />If these protestations are almost laughable, Mr. Mody’s solution also invites some derision. Hope for India, he says, lies in making it a “true democracy.” And how can that be done? “We must move to an equilibrium in which everyone expects others to be honest.” This “honest equilibrium,” he says, will promote enough trust for Indians to work together “in the long-haul tasks of creating public goods and advancing sustainable development” and awakening “civic consciousness.” Mr. Mody, it is clear, has a dream. It is naïve, and it is corny. India, alas, will continue to be “broken” for many years to come.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-74819874093342619212023-01-22T20:14:05.484-08:002023-01-22T20:14:05.484-08:00The Squeeze on India’s Spenders Is Yet to Lift
Ana...The Squeeze on India’s Spenders Is Yet to Lift<br />Analysis by Andy Mukherjee | Bloomberg<br /><br />https://www.washingtonpost.com/business/the-squeeze-onindias-spenders-is-yetto-lift/2023/01/22/064843c8-9aa3-11ed-93e0-38551e88239c_story.html<br /><br /><br />Manufacturing of wants is hard anywhere for marketers, but the challenge is bigger when the bottom half of the population takes home only 13% of national income. While India’s rapid economic growth since the 1990s has undoubtedly expanded the spending capacity of its 1.4 billion people, acute and rising inequality — among the worst in the world — makes for a notoriously budget-conscious median consumer. Companies can take nothing for granted: For Unilever’s local Indian unit, a late winter crimped sales of skin-care products last quarter.<br /><br />Still, the maker of Dove body wash and Surf detergent managed to eke out an overall 5% increase in sales volume from a year earlier, lifting net income to 25.1 billion rupees ($309 million), slightly better than expected. That was achieved by price cuts — passing along the benefit of lower palm-oil costs to soap buyers — and a step up in promotion and advertising. Still, not all players have the market leader’s financial chops. Investors who look closely at Hindustan Unilever Ltd.’s earnings for a pulse on India’s consumer demand will note with dismay the slide in industry-wide volumes for cleaning liquids, personal care items and food, the categories in which the firm competes.<br /><br />This isn’t new. Consumer demand in India has been moderating since August 2021. Village households, many of which had to liquidate their gold holdings and other assets to treat Covid-19 patients during that summer’s lethal delta outbreak, were not in a mood to spend even after the surge in deaths and hospitalization ebbed.<br /><br />Then, as major economies began to open up and crude oil and other commodities began to get pricier, firms like Unilever responded to the squeeze by reducing how much they put in a pack. Their idea was to hold on to psychologically crucial “magic price points” — such as five or 10 rupees — in the hope that customers will replenish more often. But when inflation accelerated after the start of the war in Ukraine, there was no option except to shatter the illusion of affordability by raising prices. Volumes flat-lined in the March quarter.<br /><br />“The worst of inflation is behind us,” Sanjiv Mehta, the chief executive officer, said in a statement after last week’s earnings report. That seems to be the case indeed. India’s aggregate price index rose a slower-than-expected 5.7% in December, the third straight month of cooling. That’s why perhaps instead of pushing four 100-gram bars of Lux soap for 140 rupees, Unilever is charging 156 rupees for five, according to the Business Standard. In offering an 11% price cut by bulking up pack sizes, the company is betting that most households’ budget can now accommodate an extra outlay of 16 rupees.<br /><br />It’s a reasonable gamble. A bumper wheat harvest is expected this spring. Rural India, which employs two out of three workers, found jobs for a disproportionately larger share of new entrants to the labor force in November and December, according to Mahesh Vyas of CMIE, a private firm that fills in for reliable official jobs data. “Most of the additional employment is happening in rural India and not in the towns,” he says.<br /><br />And that may well put the spotlight next year on faltering spending in cities. The tech industry is wobbling globally. In India, too, startups are firing employees in large numbers; some former darlings of venture capital, such as online test-prep and education firms, are becoming irrelevant now that Covid-19 restrictions on physical classes have ended.<br /><br />Meanwhile, India’s software-exports industry — a large employer in metropolises — has become wary of hiring because of slowing global growth. “The pain in urban consumption seems to be showing up,” JM Financial analysts Richard Liu and others wrote last week after Asian Paints Ltd.’s earnings.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-60474719497325672862022-10-03T17:25:30.222-07:002022-10-03T17:25:30.222-07:00“The poverty in the country is standing like a dem...“The poverty in the country is standing like a demon in front of us. It is important that we slay this demon. That 20 crore people are still below poverty line is a figure that should make us very sad. As many as 23 crore people have less than Rs 375 income per day. There are four crore unemployed people in the country. The labour force survey says we have an unemployment rate of 7.6 per cent,” said Dattatreya Hosabale. Also Read - 23 Crore Indians Pushed Below Poverty Line Amid COVID-19 Pandemic, Says Study<br /><br />https://www.india.com/business/23-cr-people-with-income-less-than-rs-375-day-rss-gen-secy-raises-poverty-unemployment-alarm-5665302/<br /><br />He also spoke about the rising levels of economic inequality that the country is witnessing today. Acknowledging that India is among the top six economies of the world, he said top 1 per cent holds 1/5th (20 per cent) of the nation’s income. He added that 50 per cent of the country’s population has only 13 per cent of the country’s income. Hosabale went on to quote United Nations’ observations on the poverty and development in India. Also Read - Today Will be Your Last Working Day With Uber: Ride-hailing Firm Lays Off Nearly 3,700 Employees Via Zoom<br /><br />“A large part of the country still does not have access to clean water and nutritious food. Civil strife and the poor level of education are also a reason for poverty. That is why a New Education Policy has been ushered in. Even climate change is a reason for poverty. And at places the inefficiency of the government is a reason for poverty.”<br /><br /><br />In his speech, Hosabale also stressed on the importance of creating an entrepreneurship-friendly environment apart from the need to carry skill-training from the urban to rural India.<br /><br />“During Covid, we learnt that there is a possibility of generating jobs at the rural level according to local needs and using local talent. That is why the Swavalambi Bharat Abhiyan was launched. We don’t just need all-India level schemes, but also local schemes. It can be done in the field of agriculture, skill development, marketing etc. We can revive cottage industry. Similarly, in the field of medicine, a lot of Ayurvedic medicines can be manufactured at the local level. We need to find people interested in self-employment and entrepreneurship,” Hosabale said.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-80185604919235614092022-05-31T07:53:05.307-07:002022-05-31T07:53:05.307-07:00Multiple faces of #inequality in #India. Known for...Multiple faces of #inequality in #India. Known for its #caste system, India is often thought of as one of the world's most unequal countries. Top 10% take 57% of national income—higher than 50% during British Raj. Bottom half get only 13% https://phys.org/news/2022-05-multiple-inequality-india.html via @physorg_com<br /><br />Despite sporadic evidence of converging caste or gender gaps, our research shows an intricate web of social hierarchy has been cast over every aspect of life in India. It is true that some deprived castes may withdraw from school early to explore traditional jobs available to their caste-based networks—thereby limiting their opportunities. However, are they responsible for such choices or it is the precariousness of the Indian economy that pushes them down such routes? There is no straightforward answer to these questions, even if some of the "bad choices" that individuals make can result more from pressure than choice.<br /><br />Given the complicated intertwining of various forms of hierarchy in India, broad policies targeting inequality may have less success than anticipated. Dozens of factors other than caste, gender or family background feed into inequality, including home sanitation, school facilities, domestic violence, access to basic infrastructure such as electricity, water or healthcare, crime rates, political stability of the locality, environmental risks and many more.<br /><br />Better data would allow researchers studying India to capture the contours of its society and also help gauge the effectiveness of policies intended to expand opportunities for the neediest.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-29619423729077320082022-05-31T07:52:07.938-07:002022-05-31T07:52:07.938-07:00Multiple faces of #inequality in #India. Known for...Multiple faces of #inequality in #India. Known for its #caste system, India is often thought of as one of the world's most unequal countries. Top 10% take 57% of national income—higher than 50% during British Raj. Bottom half get only 13% https://phys.org/news/2022-05-multiple-inequality-india.html via @physorg_com<br /><br />Castes, gender and background still determine life chances<br /><br />Our research indicated that at least 30% of earning inequality is still determined by caste, gender and family backgrounds. The seriousness of this figure becomes clear when it's compared with rates of the world's most egalitarian countries, such as Finland and Norway, where the respective estimates are below 10% for a similar set of social and family attributes.<br /><br />The caste system is a distinctive feature of Indian inequality. Emerging around 1500 BC, the hereditary social classification draws its origins from occupational hierarchy. Ancient Indian society was thought to be divided in four Varnas or castes: Brahmins (the priests), Khatriyas (the soldiers), Vaishyas (the traders) and Shudras (the servants), in order of hierarchy. Apart from the above four, there were the "untouchables" or Dalits (the oppressed), as they are called now, who were prohibited to come into contact with any of the upper castes. These groups were further subdivided in thousands of sub-castes or Jatis, with complicated internal hierarchy, eventually merged into fewer manageable categories under the British colonization period.<br /><br />The Indian constitution secures the rights of the Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Class (OBC) through a caste-based reservation quota, by virtue of which a certain portion of higher-education admissions, public sector jobs, political or legislative representations, are reserved for them. Despite this, there is a notable earning inequality between these social categories and the rest of the population, who consists of no more than 30% to 35% of Indian population. Adopting a data-driven approach we find that, on average, SC, ST and OBC still earn less than the rest.<br /><br />While unique, the caste system is not the only source of unfairness. Indeed, it accounts for less than 7% of inequality of opportunity, something that's in itself laudable. We will need to add criteria such as gender and family background differences to explain 30% of inequality.<br /><br />In a country where femicides and rapes regularly make headlines, it comes as no surprise that women from marginalized social groups are often subject to a "double disadvantage." For some states such as Rajasthan (in the country's northwest), Andhra Pradesh (south), Maharashtra (center), we find even upper-caste women enjoy fewer educational opportunities than men from the marginalized SC/ST communities. Even among the graduates, while the national average employment rate for males is 70%, it is below 30% for the females.<br /><br />A temporary byproduct of rising growth?<br /><br />Rising inequality could be dismissed as a temporary byproduct of rapid growth on the grounds of Simon Kuznets' famous hypothesis, according to which inequality rises with rapid growth before eventually subsiding. However, there is no guarantee of this, least of all because widening gap between rich and poor is not only limited to fast-growing countries such as India. Indeed, a 2019 study found that the growth-inequality relationship often reflects inequality of opportunity and prospects of growth are relatively dim for economies with a bumpy distribution of opportunities.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-33599964073772120262022-05-31T07:50:45.077-07:002022-05-31T07:50:45.077-07:00Multiple faces of #inequality in #India. Known for...Multiple faces of #inequality in #India. Known for its #caste system, India is often thought of as one of the world's most unequal countries. Top 10% take 57% of national income—higher than 50% during British Raj. Bottom half get only 13% https://phys.org/news/2022-05-multiple-inequality-india.html via @physorg_com <br /><br /><br />Known for its caste system, India is often thought of as one of the world's most unequal countries. The 2022 World Inequality Report (WIR), headed by leading economist Thomas Piketty and his protégé, Lucas Chancel, did nothing to improve this reputation. Their research showed that the gap between the rich and the poor in India is at a historical high, with the top 10% holding 57% of national income—more than the average of 50% under British colonial rule (1858–1947). In contrast, the bottom half accrued only 13% of national revenue. A February report by Oxfam noted 2021 alone saw 84% of households suffer a loss of income while the number of Indian billionaires grew from 102 to 142.<br /><br />Both reports highlight not only the problem of revenue inequality but also of opportunity. While there may be disagreement between left and right on the ethics of equality, there is a consensus that everyone should be given the chance to succeed and the principle of fairness—and not factors such as birth, region, race, gender, ethnicity or family backgrounds—ought to lay the foundations of a level playing field for all.<br /><br />Drawing from the latest pre-pandemic database from the Periodic Labor Force Survey of 2018–19, our research confirms this is far from the case in India. On the one hand, the country has had a consistently high GDP growth rate of more than 7% for nearly two decades, the exception being the period around the 2008 financial crisis. On the other hand, this income has failed to trickle down to India's marginalized communities, with preliminary results pointing to a higher level of inequality of opportunity in the country than in Brazil or Guatemala.<br /><br />Precarity as well as a large shadow economy also plague the country's labor market. Even before the pandemic, only 30% to 40% of regular salaried adult Indian earners had job contracts or social securities such as national pension schemes, provident fund or health insurance. For self-employed workers, the situation is even more critical, even though these constituted nearly 60% of the Indian labor force in 2019.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41032278758277283192022-05-29T17:52:07.767-07:002022-05-29T17:52:07.767-07:00What’s the Average Salary in Pakistan in 2022?
ht...What’s the Average Salary in Pakistan in 2022?<br /><br />https://biz30.timedoctor.com/average-salary-in-pakistan/<br /><br /><br /><br /><br /><br /><br /><br />The average salary in Pakistan is 81,800 PKR (Pakistani Rupee) per month, or around USD 498 according to the exchange rates in August 2021.<br /><br />The Pakistan average is significantly lower than the US average (USD 7,900) but comparable to India (USD 430), Ukraine (USD 858), and the Philippines (USD 884). It’s one of the many reasons why Pakistan is a viable alternative to these popular outsourcing destinations.<br /><br />However, you’ll need a more comprehensive analysis to understand the total expenditure on a Pakistani employee.<br /><br />In this article, we’ll share vital figures and comparisons related to the average salary in Pakistan. We’ll also explore the country’s payroll rules and top reasons to outsource there.<br /><br />Average Salary in Pakistan: Key Figures<br />The average salary figure for a country is the sum of the salaries of the working population divided by the total number of employees. It may also include benefits such as housing, transport allowance, insurance, etc., on top of the employee’s basic salary.<br /><br />The average salary is usually a good indicator of the typical income of a working citizen in the country.<br /><br />Here are some key salary figures for Pakistan according to Salary Explorer, a salary comparison website:<br /><br />The average remuneration in Pakistan may vary between 20,700 PKR per month (average minimum salary) and 365,000 PKR per month (maximum average). Please remember that this is an average salary range, and the actual maximum salary may be higher.<br /><br />The median salary in Pakistan is 76,900 PKR per month.<br /><br />If we sort the employee salaries in Pakistan in ascending or descending order, the median represents the central point in the distribution. In other words, half the Pakistani employees earn more than 76,900 PKR per month, while the other half earn less.<br /><br />These national average salary figures may give you a general estimate and help compare expenditure on employee salaries among different countries. <br /><br />But it won’t help you determine the exact remuneration for each employee in your company. <br /><br />For that, you’ll need to consider other factors like<br /><br />The type of industry.<br />Years of experience and qualification of the employee.<br />The kind of work: entry level, professional, etc.<br />The mode of work: full-time, part-time, remote, etc.<br />The region where you are operating.<br />The cost of living in the country.<br />So let’s take a more comprehensive look at the salary information in Pakistan.<br /><br />A. Average Salary by Industry<br />The average salary in a country may vary significantly with the type of industry. <br /><br />Pakistan is known for its cotton, textile, and agriculture exports, and these industries have a significant share in the country’s GDP. Due to this reason, the manufacturing sector usually employs a large portion of the Pakistani workforce. <br /><br />Here’s an industry-wise breakdown of the average salaries in Pakistan:<br /><br />Industry Average Monthly Salary<br />Energy 73,600 PKR<br />Information Technology 82,100 PKR<br />Healthcare 122,000 PKR<br />Real Estate 92,600 PKR<br />Media / Broadcasting 75,200 PKR<br />Telecommunication 72,100 PKR<br />Source: salaryexplorer.com<br /><br />B. Average Salary by Region<br />While the capital city of Islamabad is the administrative center of the country, Karachi and Lahore are the major commercial hubs in Pakistan. <br /><br />The average employee salary in the country depends on which city you’re operating in.<br /><br />Here’s the salary report for major Pakistani cities:<br /><br />City Average Monthly Salary<br />Karachi 88,300 PKR<br />Lahore 86,800 PKR<br />Islamabad 76,400 PKR<br />Faisalabad 85,400 PKR<br />Source: salaryexplorer.com<br /><br />C. Salary Variations by Education<br />As a general rule of thumb, a Pakistani employee with higher educational degrees gets a higher pay scale than their peers with a lesser degree for the same type of work. <br /><br />But how does the pay scale change with the education level?<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-58687354015981887692022-05-29T17:26:48.458-07:002022-05-29T17:26:48.458-07:00Earning Rs 25,000 monthly puts one in India's ...Earning Rs 25,000 monthly puts one in India's top 10%: Inequality report<br />Salaried employees who file income taxes are relatively better off, says study that recommends an urban employment scheme.<br /><br /><br />https://www.business-standard.com/article/economy-policy/earning-rs-25-000-monthly-puts-one-in-india-s-top-10-inequality-report-122051901283_1.html<br /><br />An Indian making Rs 3 lakh a year would be placed in the top 10 per cent of the country’s wage earners. The data is part of The State of Inequality in India report prepared by the India arm of a global competitiveness initiative, the Institute for Competitiveness.<br /><br />Bibek Debroy, chairman of the Economic Advisory Council to the Prime Minister released it on Wednesday. The report recommended a scheme for the urban jobless and universal basic income as means to reduce inequality. The nature of one's work may make a difference to income shows a closer look at the numbers in ...<br /><br />--------------------<br /><br />If You Earn Rs 25,000 Per Month, You're Among India's Top 10% Income Earners<br /><br />https://www.indiatimes.com/news/india/if-you-earn-rs-25000-per-month-you-are-among-indias-top-10-income-earners-570330.html<br /><br />The State of Inequality in India report prepared by the India arm of a global competitiveness initiative, the Institute for Competitiveness, sheds light on the state of gross inequality in the country. Ninety per cent of Indians do not earn even Rs 25,000 per month.<br /><br />This highlights the failure of the trickle-down approach to economic growth.<br /><br /><br />Bibek Debroy, chairman of the Economic Advisory Council to the Prime Minister released it on Wednesday.<br /><br /><br />The report gives a comprehensive overview of the state of inequality in the country by looking at various indicators like income profile, labour market dynamics, health, education, and household amenities.<br /><br />The report mooted an urban jobs scheme and universal basic income as a means to reduce inequality in the country.<br /><br />Gaping income disparity<br />Extrapolation of the income data from Periodic Labour Force Survey 2019-20 has shown that a monthly salary of Rs 25,000 is already amongst the top 10% of total incomes earned, pointing towards some levels of income disparity, the report said.<br /><br />It further highlighted that the average monthly salary of regular salaried, wage earners in July-September 2019 amounted to Rs 13,912 for rural males and Rs 19,194 for urban males. Employed females in rural parts earned Rs 12,090 in the same period while females in urban India earned an average Rs 15,031.<br /><br />India’s income profile is outlined by a growing disparity between those who lie on the top end of the earning pyramid and those on the bottom, highlighting the failure of the trickle-down approach to economic growth.<br /><br />Top 1% earn nearly thrice as much as the bottom 10%<br />According to the Annual Report of the PLFS 2019- 20, the annual cumulative wages came to be around Rs 18,69,91,00,000, out of which the top 1 per cent earned nearly Rs 1,27,48,00,000, and the bottom 10 per cent accounted for Rs 32,10,00,000 indicating that the top 1 per cent earns almost thrice as much as the bottom 10 per cent.<br /><br /><br />Meanwhile, the bottom 50% of the pyramid held approximately 22% of the total income earned across the three-time periods. The growth rate of the bottom 50% has been at 3.9% from 2017-18 to 2019-20, while the top 10% has grown by 8.1%.<br /><br />“This highlights the disparity between the income groups and the disproportionate rate of growth among these tiers. Additionally, the top 1% grew by almost 15% between 2017- 18 to 2019-20, whereas the bottom 10% registered a close to 1% fall,” the report highlighted.<br /><br />In terms of workforce share, nearly 15 per cent of the entire workforce earns less than Rs 50,000 (less than Rs 5,000 a month), in both years, exacerbating the experiences of poverty and economic inequality.<br /><br /><br />The PLFS also reported no and negative income, indicating that several households have no disposable income or their debts exceed their incomes.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41445454261914176562022-04-18T10:59:33.574-07:002022-04-18T10:59:33.574-07:00Why some Indians die younger than others
https://...Why some Indians die younger than others<br /><br />https://www.bbc.com/news/world-asia-india-61091336<br /><br />People belonging to the country's most marginalised social groups - adivasis or indigenous people, Dalits (formerly known as untouchables) and Muslims - are more likely to die at younger ages than higher-caste Hindus, according to one paper by Sangita Vyas, Payal Hathi and Aashish Gupta.<br /><br />They examined official health survey data of more than 20 million people from nine Indian states accounting for about half of India's population of 1.4 billion.<br /><br />---------------<br /><br />Here's the average lifespan of disadvantaged men: 60 years for adivasis, 61.3 for Dalits, and 63.8 for Muslims. An average higher-caste Hindu man is expected to live for 64.9 years.<br /><br />Such enduring gaps were comparable in terms of years to the gaps in life expectancies between black and white Americans in the US, researchers say. Since life expectancy in India is less than four-fifths the level in the US, the outcomes in India are more substantial in percentage terms.<br /><br />To be sure, buoyed by advances in medicine, hygiene and public health, India has made massive gains in life expectancy: half a century ago, the average Indian would beat the odds by surviving into his or her 50s. Now they're expected to live almost 20 years longer.<br /><br />Dalit women are among the most oppressed in the world<br />The bad news is that although life expectancy for all social groups has increased, disparities have not reduced, according to a related study by Aashish Gupta and Nikkil Sudharsanan.<br /><br />In some cases, absolute disparities have increased: the life expectancy gap between Dalit men and upper-caste Hindu men, for example, had actually increased between the late 1990s and mid-2010s. And although Muslims had a modest life expectancy disadvantage compared to high castes in 1997-2000, this gap has grown substantially over the past 20 years.<br /><br />India is home to some of the largest populations of marginalised social groups in the world. The 120 million adivasis - an "invisible and marginal minority", in the words of a historian - live in considerable poverty in some of the remotest parts. Despite political and social empowerment, the 230 million Dalits continue to face discrimination. And an overwhelming majority of 200 million Muslims, the third largest number of any country, continue to languish at the bottom of the social ladder and often become targets of sectarian violence.<br /><br />What explains these gaps in life expectancy in different groups?<br /><br />India is neither a melting pot nor a salad bowl<br />Here is where it gets interesting.<br /><br />Researchers find that differences in where people live, their wealth and exposure to environment account for less than half of these gaps. For example, the study found that adivasis and Dalits live shorter than higher-caste Hindus across wealth categories.<br /><br />To find more precise answers on how discrimination influences mortality, India needs to step up research. There is some evidence which tells us why, for example, Muslims live longer than the adivasis and Dalits. They include lower exposure to open defecation among children, lower rates of cervical cancers among women, lower consumption of alcohol and lower incidence of suicide.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-44453554553947732512022-03-28T10:34:30.688-07:002022-03-28T10:34:30.688-07:00#UkraineWar has exposed #inequity in #India's ...#UkraineWar has exposed #inequity in #India's #medical school admissions. #Indian medical entrance exam favors students from elite backgrounds (upper caste) who can afford specialized coaching or those who can attend expensive private colleges ($100,000) https://www.csmonitor.com/World/Asia-South-Central/2022/0328/How-the-Ukraine-war-exposed-education-inequity-in-India<br /><br />Every year, roughly 1.5 million students take the National Eligibility cum Entrance Test, or NEET, to compete for some 90,000 seats in medical schools across India. About half of those are at private universities where tuition and other fees easily exceed $100,000. As a result, tens of thousands of Indian students opt to study medicine in countries like China, Russia, and Ukraine, where education is cheaper.<br /><br />Opposition to NEET has been brewing since the government introduced the exam in 2013. Critics say that NEET favors students from elite backgrounds who can afford specialized coaching – echoing arguments against the SAT and ACT in the United States – or who can attend expensive private colleges where the bar for admission is lower. “The system is not fair; there cannot be any doubt on that,” says Dr. Anand Krishnan, a professor of community medicine at the All India Institute of Medical Sciences in New Delhi. “Medical profession is not just pure knowledge. You have to be more humane. There are a lot of other characteristics which are important to look for.”<br /><br />When Mr. Gahlot was in 11th grade, he left his hometown of Siryawali in northwest Uttar Pradesh to go to Kota, Rajasthan, the academic coaching capital of India. There, he says, he followed a grueling regimen of studying six to seven hours a day, but fell about 50 points short of what was required to get into a government-run college.<br /><br />“It was totally depressing. I would think I’m not smart enough to be a doctor, I can’t do this,” he says. Several of his friends in similar situations chose different career paths. But Mr. Gahlot had made up his mind to become a doctor in eighth grade, and turned to his last resort – going abroad. He says he was too ashamed to tell his peers he was leaving India, because many see foreign medical students as “quitters” who weren’t able to crack NEET.<br /><br />The fierce competition for Indian medical school seats cost another student his life. Naveen Gyanagoudar had gone outside to buy food when he was killed by Russian shelling in Kharkiv, Ukraine. Speaking to local reporters, his distraught father lamented that despite scoring 97% on high school exams, his son couldn’t get admission to a medical school in his own country.<br /><br />The double blow of high competition and high cost means India’s new generation of doctors lacks diversity. “They are predominantly urban-centric kids, from well-entrenched, reasonably well-off middle-class families,” says Dr. Sita Naik, a former member of the Medical Council of India, which used to oversee medical education. Dr. Naik says these graduates are unlikely to move to rural areas, where the demand for doctors is the greatest. Rural India is home to two-thirds of the country’s population but only 20% of its doctors, according to a 2016 report.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-29341027490478640612022-03-17T20:47:40.031-07:002022-03-17T20:47:40.031-07:00#India's Size Illusion by Arvind Subramanian. ...#India's Size Illusion by Arvind Subramanian. #Indian policymakers should avoid succumbing to the illusion of size, and reconcile themselves with their country's current status as a middling power. #Modi #BJP #Hindutva #Russia #Ukraine #China @ProSyn https://prosyn.org/hNyXBIw<br /><br />True, India’s economy is undeniably large. According to the International Monetary Fund, India is the world’s third-largest economy in purchasing-power-parity terms, with a GDP of $10 trillion, behind China ($27 trillion) and the United States ($23 trillion). At market exchange rates, its GDP of $3 trillion makes it the sixth-largest economy, behind the US, China, Japan, Germany, and the United Kingdom.<br /><br />But India’s economic size has not translated into commensurate military strength. Part of the problem is simple geography. Bismarck supposedly said that the US is bordered on two sides by weak neighbors and on two sides by fish. India, however, does not enjoy such splendid isolation. Ever since independence, it has been confronted on its Western frontier by Pakistan, a highly armed, chronically hostile, and often military-ruled neighbor.<br /><br />More recently, India’s northern neighbor, China, also has become aggressive, repudiating the territorial status quo, occupying contested land in the Himalayas, reclaiming territory in the east, and building up a large military presence along India’s borders. So, India may have fish for neighbors along its long peninsular coast, but on land it faces major security challenges on two fronts.<br /><br /><br />------------<br /><br />Then there is the question of market size. As Pennsylvania State University’s Shoumitro Chatterjee and one of us (Subramanian) have shown, India’s middle-class market for consumption is much smaller than the $3 trillion headline GDP number suggests, because many people have limited purchasing power while a smaller number of well-off people tend to save a lot. In fact, the effective size of India’s consumer market is less than $1 trillion, far smaller than China’s and even smaller relative to the potential world export market of nearly $30 trillion.<br /><br />---------------<br />India needs to accept, and act in line with, its current status as a middling power. Over time, rapid and sustained economic growth could make India the major power it aspires to be. Until then, it must look past the illusion of size and reconcile itself with strategic realities.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-73867914345467728452022-02-13T10:51:01.135-08:002022-02-13T10:51:01.135-08:00Oxfam report: In 2021, income of 84% households fe...Oxfam report: In 2021, income of 84% households fell, but number of billionaires grew<br /><br />https://indianexpress.com/article/india/oxfam-report-2021-income-households-fell-7726844/<br /><br /><br />The income of 84 per cent of households in the country declined in 2021, but at the same time the number of Indian billionaires grew from 102 to 142, an Oxfam report has said, pointing to a stark income divide worsened by the Covid pandemic.<br /><br />The Oxfam report, “Inequality Kills’’, released on Sunday ahead of the World Economic Forum’s Davos Agenda, also found that as Covid continued to ravage India, the country’s healthcare budget saw a 10% decline from RE (revised estimates) of 2020-21. There was a 6% cut in allocation for education, the Oxfam report says, while the budgetary allocation for social security schemes declined from 1.5% of the total Union budget to 0.6%.<br /><br />The India supplement of the global report also says that in 2021, the collective wealth of India’s 100 richest people hit a record high of Rs 57.3 lakh crore (USD 775 billion). In the same year, the share of the bottom 50 per cent of the population in national wealth was a mere 6 per cent.<br />During the pandemic (since March 2020, through to November 30, 2021), the report says, the wealth of Indian billionaires increased from Rs 23.14 lakh crore (USD 313 billion) to Rs 53.16 lakh crore (USD 719 billion). More than 4.6 crore Indians, meanwhile, are estimated to have fallen into extreme poverty in 2020, nearly half of the global new poor according to the United Nations.<br /><br /><br />https://wir2022.wid.world/www-site/uploads/2021/12/WorldInequalityReport2022_Full_Report.pdfRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52645798752365921152022-02-10T10:15:00.703-08:002022-02-10T10:15:00.703-08:00A stark statistic: the income of 1/5th of India‘s ...A stark statistic: the income of 1/5th of India‘s population has plunged a staggering 53% in the last 5 years. While the wealth of top 100 Indians has soared to Rs 57 lakh crores. <br /><br />https://youtu.be/xPIPejVpvjY<br /><br /><br />4.6 crore Indians have slipped into extreme poverty. <br /><br />What does such inequity say about India? And is the government doing enough to design a pathway out of it?<br /><br />Provocative. Animated. Incensed. Economist RATHIN ROY — former member of PM’s economic advisory council, and managing director of ODI — lays bare the faultlines in the economy, the Budget, and the principles & priorities driving India’s economic thinking. <br /><br />“For the first time in India’s independent history, there is no professional mid or long term economic plan,” says he. <br /><br />So what would he do if he was in the driving seat?<br /><br />------------<br /><br />#India’s #economic distress threatens #BJP’s dominance in state elections. India suffered a 7.3% economic contraction in the first year of the #pandemic, with tens of millions of people falling out of the #middleclass and into #poverty. | Financial Times<br /><br />https://www.ft.com/content/8b5056d3-141b-491d-a715-e810f53fe40e<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-54408342006577162162022-02-06T12:30:03.253-08:002022-02-06T12:30:03.253-08:00How long does it take to earn the money to buy an ...How long does it take to earn the money to buy an Apple iPhone 12?<br /><br />Based on minimum wage levels, a new report from Grover.com estimates it would take 6,639 hours for a Venezuelan to earn enough for the prized smartphone and 3,254 hours for an Indian. Chinese people must work 680 hours to make enough money.<br /><br />1642 Hours in Pakistan<br />1791 Hours in Indonesia<br />3254 Hours in India<br />2045 Hours in Egypt<br /><br />Need-to-Know Research<br /><br />https://www.bloomberg.com/news/newsletters/2022-02-04/what-s-happening-in-the-world-economy-biden-raids-reagan-playbook-for-rebrand<br /><br /><br />https://twitter.com/economics/status/1490386589578575876?s=20&t=-tQYKZSMasGzZFpZB31SHQ<br /><br /><br />Minimum Monthly Wage levels in selected countries:<br /><br />Pakistan: $491<br /><br />Nepal: $396<br /><br />Vietnam: $388<br /><br />China: $353<br /><br />Afghanistan: $306<br /><br />Sri Lanka: $247<br /><br />India: $215<br /><br />Solomon Islands: $213<br /><br />Bangladesh: $48<br /><br /><br />https://www.tbsnews.net/economy/bangladeshs-monthly-minimum-wage-lowest-asia-pacific-region-ilo-166438<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52295538905705250972022-01-23T20:42:40.623-08:002022-01-23T20:42:40.623-08:00#Modi’s #India: #Income of the poorest 20% #Indian...#Modi’s #India: #Income of the poorest 20% #Indians plunged 53% in 5 yrs while the richest 20% saw their annual household income grow 39%. #Inequality #BJP #Hindutva #Covid | India News,The Indian Express<br /><br />https://indianexpress.com/article/india/income-of-poorest-fifth-plunged-53-in-5-yrs-those-at-top-surged-7738426/lite/<br /><br />Even among the poorest 20 per cent, those in urban areas got more impacted than their rural counterparts as the first wave of Covid and the lockdown led to stringent curbs on economic activity in urban areas. This resulted in job losses and loss of income for the casual labour, petty traders household workers.<br /><br />Data shows that there has been a rise in the share of poor in cities. While 90 per cent of the poorest 20 per cent in 2016, lived in rural India, that number had dropped to 70 per cent in 2021. On the other hand the share of poorest 20 per cent in urban areas has gone up from around 10 per cent to 30 per cent now.<br /><br />“The data reflects that the casual labour, petty trader, household workers among others in Tier 1 and Tier 2 cities got hit most by the pandemic. During the survey we also noticed that while in rural areas people in lower middle income category (Q2) have moved to middle income category (Q3), in the urban areas the shift has been downwards from Q3 to Q2. In fact, the rise in poverty level of urban poor has pulled down the household income of the entire category down,” said Shukla.<br /><br />“The elephant in the room is investment,” said Bijapurkar. “Inspiring confidence through long-term policy stability and improving ease of doing business should make the tide rise again and sweep small business and individuals up along with it. Most big companies are doing well and don’t need more help but we need to work the economy for the bottom half.”Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-29084906231587253622022-01-23T20:42:19.573-08:002022-01-23T20:42:19.573-08:00#Modi’s #India: #Income of the poorest 20% #Indian...#Modi’s #India: #Income of the poorest 20% #Indians plunged 53% in 5 yrs while the richest 20% saw their annual household income grow 39%. #Inequality #BJP #Hindutva #Covid | India News,The Indian Express<br /><br />https://indianexpress.com/article/india/income-of-poorest-fifth-plunged-53-in-5-yrs-those-at-top-surged-7738426/lite/<br /><br />In a trend unprecedented since economic liberalisation, the annual income of the poorest 20% of Indian households, constantly rising since 1995, plunged 53% in the pandemic year 2020-21 from their levels in 2015-16. In the same five-year period, the richest 20% saw their annual household income grow 39% reflecting the sharp contrast Covid’s economic impact has had on the bottom of the pyramid and the top.<br /><br />This stark K-shaped recovery emerges in the latest round of ICE360 Survey 2021, conducted by People’s Research on India’s Consumer Economy (PRICE), a Mumbai- based think-tank.<br /><br />The survey, between April and October 2021, covered 200,000 households in the first round and 42,000 households in the second round. It was spread over 120 towns and 800 villages across 100 districts.<br /><br />While the pandemic brought economic activity to a standstill for at least two quarters in 2020-21 and resulted in a 7.3% contraction in GDP in 2020-21, the survey shows that the pandemic hit the urban poor most and eroded their household income.<br /><br />Splitting the population across five categories based on income, the survey shows that while the poorest 20% (first quintile) witnessed the biggest erosion of 53%, the second lowest quintile (lower middle category), too, witnessed a decline in their household income of 32% in the same period. While the quantum of erosion reduced to 9% for those in the middle income category, the top two quintiles — upper middle (20%) and richest (20%)— saw their household income rise by 7% and 39% respectively.<br /><br />The survey shows that the richest 20% of households have, on average, added more income per household and more pooled income as a group in the past five years than in any five-year period earlier since liberalisation. Exactly the opposite has happened for the poorest 20% of households — on average, they have never actually seen a decrease in household income since 1995. Yet, in 2021, in a huge knockout punch caused by Covid, they earned half as much as they did in 2016.<br /><br /><br />How disruptive this distress has been for those at the bottom of the pyramid is reinforced by the fact that in the previous 11-year period between 2005 and 2016, while the household income of the richest 20% grew by 34%, the poorest 20% saw their household income surge by 183% at an average annual growth rate of 9.9%.<br /><br />Coming in the run-up to the Budget, the task for the Government is cut out.<br /><br />“As the Finance Minister is finalising her budget proposals for 2022-23 to give shape to the roadmap for economic revival of the country,” said Rajesh Shukla, MD and CEO, PRICE, “we need a K-shaped policy too that addresses the two ends of the spectrum and a lot more thinking on how to build the bridge between the two.”<br /><br />This couldn’t be more timely. Said PRICE founder and one of the authors of the survey Rama Bijapurkar. “Or else, we are back to a tale of two Indias, a narrative we thought we were rapidly getting rid of. The good news is that we have built a far more efficient welfare state for the disbursal of benefit be it DBT or vaccination for all.”<br /><br />The survey showed that while the richest 20% accounted for 50.2% of the total household income in 1995, their share has jumped to 56.3% in 2021. On the other hand, the share of the poorest 20% dropped from 5.9% to 3.3% in the same period.<br /><br />As for India Inc, it has been in a better position to weather the disruption. The pandemic accelerated further formalisation of the economy with large companies benefitting at the cost of smaller ones. The survey also shows that while job losses were quite evident among Small and Medium Enterprises in the casual labour segment, large companies did not witness much of that.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-4670035194547184682021-12-30T15:22:32.694-08:002021-12-30T15:22:32.694-08:00Like I said on December 25, 2021 at 9:25 AM
"...Like I said on December 25, 2021 at 9:25 AM<br /><br />"Arunachal,Ladakh,Sikkim,Parts of Uttarakhand and Assam,will be a part of PRC"<br /><br />PRC has almost renamed every street of Arunachal.What is left is Pin Codes and Chinese sign boards !<br /><br />What are the Hindoos doing ? Drinking Gau Mutram !<br /><br />The North East "INDIANS" have to see the future with the Hans - and breed a new race, instead of specimens like this <br /><br />https://www.news18.com/news/buzz/goat-gives-birth-to-offspring-with-human-like-face-in-assam-4607219.html<br /><br />This is just 1 day old !<br /><br />The baby goat looks like a cross,between Amit Shah and Chaiwala !<br /><br />People say Y ? <br /><br />It is Bestiality,which is normal and passe in Hindooism !<br /><br />For Hindoos,Goat = Bestiality <br />For Chinese,Goat = MEAT !<br /><br />The "INDIANS" have to see the future ! dindooohindoo<br /><br />The purpose of life,as a human being,is to EVOLVE ! China is the future,for the "INDIANS" of North East India !samir sardananoreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-77747865466719759292021-12-29T12:56:13.967-08:002021-12-29T12:56:13.967-08:00No one can save Chaiwala from the death which he d...No one can save Chaiwala from the death which he deserves <br /><br />No Head of State has been killed in a cavalcade.JFK was killed in an open car with clear line of sight<br /><br />So Y a Bullet Proof car for Chaiwala <br /><br />It is time for Chaiwala to meet his good friend Parrikar samir sardananoreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-81203464867600518382021-12-28T07:31:19.055-08:002021-12-28T07:31:19.055-08:00#India #Unemployment: Modi gov't said in Decem...#India #Unemployment: Modi gov't said in December that 9% of all MSMEs had shut down because of #COVID19. In May, another survey of over 6,000 MSMEs and startups found that 59% were planning to shut shop, scale down or sell before the end of 2021. #economy https://aje.io/ytyan4<br /><br />Baldev Kumar threw his head back and laughed at the mention of India’s resurgent GDP growth. The country’s economy clocked an 8.4-percent uptick between July and September compared with the same period last year. India’s Home Minister Amit Shah has boasted that the country might emerge as the world’s fastest-growing economy in 2022.<br /><br />Kumar could not care less.<br /><br />As far as he was concerned, the crumpled receipt in his hand told a different story: The tomatoes, onions and okra he had just bought cost nearly twice as much as they did in early November. The 47-year-old mechanic had lost his job at the start of the pandemic. The auto parts store he then joined shut shop earlier this year. Now working at a car showroom in the Bengaluru neighbourhood of Domlur, he is worried he might soon be laid off as auto sales remain low across India.<br /><br />He has put plans for his daughter’s wedding on hold, unsure whether he can foot the bill. He used to take a bus to work. Now he walks the five-kilometre (three-mile) distance to save a few rupees. “I don’t know which India that’s in,” he said, referring to the GDP figures. “The India I live in is struggling.”<br /><br />Kumar wasn’t exaggerating – even if Shah’s prognosis turns out to be correct.<br /><br />Asia’s third-largest economy is indeed growing again, and faster than most major nations. Its stock market indices, such as the Sensex and Nifty, are at levels that are significantly higher than at the start of 2021 – despite a stumble in recent weeks. But many economists are warning that these indicators, while welcome, mask a worrying challenge – some describe it as a crisis – that India confronts as it enters 2022.<br /><br />November saw inflation rise by 14.23 percent, building on a pattern of double-digit increases that have hit India for several months now. Fuel and energy prices rose nearly 40 percent last month. Urban unemployment – most of the better-paying jobs are in cities – has been moving up since September and is now above 9 percent, according to the Centre for Monitoring Indian Economy, an independent think-tank. “Inflation hits the poor the most,” said Jayati Ghosh, a leading development economist at New Delhi’s Jawaharlal Nehru University.<br /><br />All of this is impacting demand: Government data shows that private consumption between April and September of 2021 was 7.7 percent lower than in 2019-2020. The economic recovery from the pandemic has so far been driven by demand from well-to-do sections of Indian society, said Sabyasachi Kar, who holds the RBI Chair at the Institute of Economic Growth. “The real challenge will start in 2022,” he told Al Jazeera. “We’ll need demand from poorer sections of society to also pick up in order to sustain growth.”<br /><br /><br />-------------<br /><br />“The decimation of MSMEs is why we’re seeing core inflation, and we should be very worried,” said economist Pronab Sen, former chief statistician of India, referring to an inflation measure that leaves out food and energy because of their volatile price shifts. India’s core inflation stood at more than 6 percent in October. The level of competition in the market has also dramatically shrunk, he said. “Pricing power has shifted to a small number of large companies,” Sen told Al Jazeera. “And it is their exercise of this power that is leading to core inflation.”<br /><br />When fuel prices rise globally – and subsequently in India – some inflation is unavoidable. But a competitive market usually forces companies to absorb much of that burden in their margins. Without that competition, Sen said, it is easier for firms to pass more of the increased costs on to consumers.<br /><br />MSMEs have long been the backbone of the Indian labour market, employing 110 million people. Their struggles are a key reason for India’s failure to reduce unemployment rates, Sen added.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-126958003911577662021-12-27T11:34:15.157-08:002021-12-27T11:34:15.157-08:00H.E. said "The NMP is hardly the panacea for ...H.E. said "The NMP is hardly the panacea for growth in India"<br /><br />NMP is not a growth tool - it is a wealth transfer tool !<br /><br />The Editor of Hindu says "But the point is that it only underscores the need for policy makers to investigate the key reasons and processes which led to once profit-making public sector assets becoming inefficient and sick businesses"<br /><br />He is a Potta Potte tamil brahmin - the lowest of the lowest ! The Indian Media is a Politician Pimping Entity !<br /><br />Jat Puttar or Gujjar Puttar says "Sachin Pilot on Wednesday slammed the Central government over National Monetisation Pipeline (NMP) by saying that the new scheme will create monopoly and duopoly in the economy"<br /><br />NONE OF THESE CLOWNS UNDERSTAND THE GAME !<br /><br />THE AIM OF NMP,IS TO RAISE CAPITAL W/O SELLING ASSETS,AND MAXIMISING THE PROFITS,AND REDUCING THE RISKS OF THE PANWARI BANIA BRIGADE !<br /><br />TAKE GAIL OR PGC - A QUASI MONOPOLY !<br /><br />STEP 1 <br /><br />SO GAIL PIPELINES/ROW,AND PGC TOWERS AND ROW,WILL BE LEASED TO PANWARI BANIAS !<br /><br />STEP 2<br /><br />THE PANWARI BANIAS HAVE HUGE CASH SURPLUSES AND A TREASURY,BIGGER THAN SBI - BUT THERE IS NO YIELD ON G-SECS.SO CHAIWALA HAS GIVEN THEM A CHANCE,TO PARK THEIR CASH AT A FIRR OF 15% IN NMP ! ON TOP OF THAT,THESE BANIAS WILL ALSO SECURE BANK LOANS,TO FUND THE UPFRONT NMP (TO THE EXTENT THAT THE BANIA HAS LESS CASH)<br /><br />STEP 3 <br /><br />THE GOI WILL RUN GAIL AND PGC,INTO THE GROUND,AND THUS,NMP WILL "APPEAR MORE EFFICIENT" AND MAKE MORE PROFITS ! THE SAME MODEL,WAS USED IN SAIL-SALEM - WHERE JINDAL STAINLESS PAID OFF THE STEEL MINISTER TO RUIN SALEM - AND THEN JINDAL STAINLESS,SOLD ITS STEEL AT A PREMIUM, AND ULTIMATELY THE BANIA BOUGHT SALEM,AND THE STAFF OF SALEM,AND THE CMD OF SAIL !<br /><br />THUS THE IMPROVED PERFORMANCE (INDUCED) OF NMP ASSETS,WILL ALLOW THE BANIA,TO CHARGE A PREMIUM,FOR THE SALES - AND THEN,IN FUTURE - BECOME THE TRACK RECORD TO ACQUIRE GAIL AND PGC !<br /><br />STEP 4 <br /><br />THEN COMES IN JP MORGAN AND MORGAN STANLEY,TO ACQUIRE STAKES IN THE NMP,HELD BY THE BANIAS, AND OFFER SYNDICATION AND MERCHANT BANKING SERVICES !<br /><br />STEP 5 <br /><br />THIS IS THE KEY ! THE PANWARI BANIAS (BARRING 1)ARE IN A CYCLICAL BUSINESS ! BY GETTING INTO AN ANNUITISED MONOPOLY BUSINESS UNDER APM (QUASI),THEY ARE "LOWERING THE RISK" - FINANCIAL,ECONOMIC AND FX RISK - AT THE COST OF THE GOI - AS THE GOI,NEED NOT HAVE DONE THE NMP !<br /><br />LOWER RISK,MEANS LOWER BASIS POINTS,AND HIGHER PAT AND HIGHER EQUITY CAPITALISATION AND HIGHER GDR AND ADR RATES ! dindooohindoo<br /><br />THAT IS THE PANCH PANDAV BANIA AND CHAIWALA COLLABOFATION !samir sardananoreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-6483228291859546182021-12-27T09:45:51.182-08:002021-12-27T09:45:51.182-08:00The NMP is hardly the panacea for growth in India
...The NMP is hardly the panacea for growth in India<br /><br /><br />https://www.thehindu.com/opinion/op-ed/the-nmp-is-hardly-the-panacea-for-growth-in-india/article37956016.ece<br /><br /><br />As the Government has also shown, there are out-of-the-box policy initiatives to revamp public sector businesses<br /><br />The National Monetisation Pipeline (NMP) envisages an aggregate monetisation potential of ₹6-lakh crore through the leasing of core assets of the Central government in sectors such as roads, railways, power, oil and gas pipelines, telecom, civil aviation, shipping ports and waterways, mining, food and public distribution, coal, housing and urban affairs, and stadiums and sports complexes, to name some sectors, over a four-year period (FY2022 to FY2025). But the point is that it only underscores the need for policy makers to investigate the key reasons and processes which led to once profit-making public sector assets becoming inefficient and sick businesses.<br /><br />------------------<br /><br />Congress leader Sachin Pilot on Wednesday slammed the Central government over National Monetisation Pipeline (NMP) by saying that the new scheme will create monopoly and duopoly in the economy.<br /><br />https://www.business-standard.com/article/current-affairs/nmp-will-create-monopoly-duopoly-in-our-economy-says-sachin-pilot-121090200108_1.html<br /><br /><br />Addressing a press conference in Bengaluru, Pilot questioned the government's decision to "lease core strategic assets of the country to private entities".<br /><br /><br />"The government said that NMP will get revenue of Rs 6 lakh crores for the next four years. The money that they will raise, will it go to fulfil the Rs 5.5 lakh crores deficit that we are running today or is it there to boost revenue," he stated.<br /><br />"There is already a problem of unemployment in our country. When private entities take over the assets like railways, telecom and aviation, they will certainly lay off more people to make profits, which means more unemployment," he added.<br /><br />Pilot further said that handing over important assets of the country to a handful of people will create a monopoly and duopoly in the economy.<br /><br />The Congress MLA asserted that the NMP poses serious questions on the country's integrity and security. "I want to ask what stops the international funds to make an investment and take a stake in these important assets," he stated.<br /><br />"There are many countries that forbid Chinese entities to bid for telecom tower or fibre optical cable. I want to question the government what safeguards have been placed in NMP to stop inappropriate entities from bidding for our core strategic assets," he added.<br /><br />Pilot called the government's decision regarding NMP as 'unilateral' that happened without any discussion with trade unions, stakeholders or the Opposition. He further questioned the transparency of the whole process and how it is going to benefit people.<br /><br />"Will the money raised be used to double farmers' income or to give Rs 15 lakhs to every Indian citizen as promised by the government? Or will it be used to make a building complex or in some vanity project," he questioned.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-33216253103003653352021-12-27T09:06:47.105-08:002021-12-27T09:06:47.105-08:00“Demographic dividend”
Dividend needs profit ! In...“Demographic dividend”<br /><br />Dividend needs profit ! India is Bankrupt !<br /><br />Dividend can be paid from capital ! But Chaiwala has SOLD all the assets,via NMP !<br /><br />The Formula for “Demographic dividend”,is wrong ! It should be "workable and employable age population",on the numerator !<br /><br />The Only potential of the numerator = Making Toilets and Cleaning Toilets !<br /><br />But Toilets have to be cleaned,for free !<br /><br />Where are the eco-no-mists,with the Demo Dividend thesis ?<br /><br />Population is a dead weight,in all Capitalist nations - for the simple reason that,private investments by capitalists,are not made to employ the masses.<br /><br />Least of all in India - where the capitalists are the Panwari Bania vermin !dindooohindoo<br /><br />The Biggest disaster of population,in a nation like India,is Political Risk and the Bastille Risk<br /><br /><br />samir sardananoreply@blogger.com