JUST WHAT THE DOCTOR ORDERED

If you had read my previous blog ‘FARMING SECTOR CRITICALLY ILL – ON VENTILATOR’ then it would appear to you that the Finance Minister too went to the ICU to see the same patient! As for the hapless and anaemic opposition, which came to the budget party with their cliche phrases and catch words like ‘Suit boot ki sarkar’ and ‘Ambani Adani ki sarkar’, when confronted with a fiscally prudent and ‘far left of left’ budget to address the aches of the farming sector and groans of the non farming rural India, their gramophone records got stuck! With this budget the government’s strategy of rural development in India mainly focuses on poverty alleviation, better livelihood opportunities, provision of basic amenities and infrastructure facilities through innovative programmes of wage and self-employment.

Rural Development in India is one of the most important factors for the growth of the Indian economy. Both agriculture and non-agriculture sector in rural India was crying out for help. For a change, the law makers have responded. In order to increase the growth agriculture, handicrafts, fisheries, poultry, and diary, which are the primary contributors to the rural business and economy have all been given a boost. The major highlight of the budget was the big push on agriculture and rural India - a package of Rs 87,765 crore in fiscal year 2017!

Though Rural India only contributes 18% to our GDP, 50% of Indians live in villages. If these 50% Indians do not have money in their pockets to spend on tooth paste, talcum powder, two wheeler and tractors then how will the industries manufacturing these products and many more continue to grow? If the consumer bases of our companies shrink by 50% then how will the economy of the nation grow?

Quite justifiably the government targets to double the income of farmers by 2020 and has taken special steps to address the quality of life of rural Indians. Rs 2,000 crore for new LPG connections, Rs 35,984 crore for the farming sector, Rs 86,500 crore on irrigation for five years, and Rs 15,000 crore interest subvention for agricultural loans are few of the important assistance offered to the rural poor. The budget further plans to electrify all Indian villages by 1 May 2018 and allocates Rs 8,500 crore for rural electrification in fiscal 2017. So this is not mere intention but intention backed with hard cash ………..a departure from the past practice of giving hollow rights – right to education, right to food but no road map to achieve the lofty ideals. The budget also address issues of optimal utilization of water resources, create new infrastructure for irrigation, conserve soil fertility with balanced use of fertilizer and provide connectivity from farm to market.

Farm animals are a part of the farmer’s family. The budget has come up with 4 schemes for farm animals an animal wellness programme and provision of Animal Health Cards, an advanced breeding technology, creation of an e market portal for connecting breeders and farmers and lastly a National Genomic Centre for indigenous breeds and Rs. 850 crores have been allocated for these projects!

The rural economy is an integral part of the overall Indian economy. As majority of the poor reside in the rural areas, the budget aims at alleviating poverty through the instrument of self-employment and wage employment programmes, by providing community infrastructure facilities such as drinking water, electricity, road connectivity, health facilities, rural housing and education and promoting decentralization of powers to strengthen the Panchayati raj institutions.

Just as implementation is the touchstone for planning, people's participation is the centre-piece in rural development. And this has been strived for in this budget. An effort has been made at improving rural people’s livelihoods in an equitable and sustainable manner, both socially and environmentally, through better access to assets - natural, physical, human, technological and social capital, and services. Equally important is control over productive capital in its financial or economic and political forms. This will enable us to improve the livelihoods of the rural poor on a sustainable and equitable basis.

With the basic objectives of alleviation of poverty and unemployment, attempts have been made to create basic social and economic infrastructure, provide training to rural unemployed youth and offer employment to marginal farmers/labourers to discourage seasonal and permanent migration to urban areas. The MGNREGA has been very imaginatively tweaked and is now no more an aimless dig here fill there programme!

At present, technology dissemination is uneven and slow in the rural areas. All efforts of organizations developing technologies, devices and products for rural areas have failed to yield high success till date and we hope many Start ups will take up this challenge.  Technological development fueled by demand has a higher dissemination rate. However, in India, technology developers for rural areas have been catering to needs (with small improvement), rather than creating demand. Steve Jobbs did not wait for the world to ask for a smart phone. He created the product and made us realize that we cannot do without it!

Propagation of technology/schemes for rural development is slow and there is a lacking in wider participation of different stakeholders. An ideal approach may therefore be to include the government, panchayats, village personals, researchers, industries, NGOs and private companies to not only help in reducing this imbalance, but also to have a multiplier effect on the overall economy. The budget is just a good beginning.