The Indian Economy is distinguished as an expanding market economy. According to the Nominal GDP, India comes under the sixth-largest economy and the third-largest according to Purchasing Power Parity (PPP). + +However, India is facing multiple terrible crises, presently including the COVID-19 pandemic which has resulted in economic crises followed by problems in healthcare, infrastructure, and many more + + Healthcare - The healthcare industry is facing great difficulties at this instant. Let’s have a glimpse of its problems and try to understand them. + + Problems + +NEGLECT OF RURAL POPULATION - A rural district is commonly defined as large and separated districts of a county, often with a low population consistency. Before the beginning of enterprises, there was nothing like cities and villages. The immense inflow of community from villages to cities slowly changed the common belief towards the villages. Eventually, rural areas, where the business was set up, slowly became heavier in population and thus were coined the term "Urban Areas". + +A serious obstacle to India's health custom is the neglect of rural gatherings. It is vastly a service based on city hospitals. Although there are a huge number of PHC's and rural hospitals, urban intolerance is obvious. According to health data, 31.5% of hospitals and 16% of hospital beds are positioned in rural areas where 75% of the total population occupies. + + + +Besides, doctors are hesitant to operate in rural areas. Instead of developing a health procedure associate with paramedical to enhance the periphery. + + + +The problem is very unpleasant and shocking. The very fact that villages seem less lucrative and inadequate, the ability to be the dealers of gain has kept the corporate area at a distance. And since corporate growth is absent in villages, there is no flowable currency. Rural areas have become correspondent to the abject shortage. The problem expects a holistic method. Logical use of technology fastened with really realistic strategies can only help stretch the gap between village and city. + + + + + +EXPENSIVE HEALTH SOURCE - In India, health sources, especially allopathic, are quite rare. It hits hard the ordinary people. Prices of several fundamental drugs have gone up. + +The average cost of a therapy contest in a community in India is around Rs.1500. The fees are sufficient to make an individual think twice or thrice before addressing mental health assistance in the country. 'The Mint' says there is about one mental state trained per 100,000 population in India. A lot of young communities are also scared of accessing the benefits because of their increased expenditure. The embarrassment of mental health enhances more to the crisis since a lot of managers do not want to 'feed the need' to invest their children with the mental health benefits that they might assign. Also, mental health crises are a part of every category of society. But despite that, lesser earning people do not have a choice to opt-out for mental health maintenance even when they compel the most. + + + +SHORTAGE OF MEDICAL PERSONNEL - In India, a shortage of medical personnel such as doctors, nurses, etc. is a vital problem in the health area. In 1999-2000, while there were only 5.5 doctors per 10,000 civilizations in India, the exact is 25 in the USA and 20 in China. Likewise, the volume of hospitals and dispensaries is inadequate in comparison to our huge community. + + + +A 2016 study assigned by the World Health Organization found that the " lack of trained fitness specialists was the main limitation on our capacity to achieve health delivery." + + + +There is a health procedures crisis, said global health and bioethics researcher Anant Bhan. With the much-touted national health purpose too, human reserves have been avoided. + + + +LACK OF MEDICAL RESEARCH - Medical Research in the nation needs to be concentrated on drugs and vaccines for low diseases which are commonly overlooked by International Pharmaceutical Companies on account of their insufficient profitability conceivable. The National Health Policy (NHP) 2002 recommends distributing more budgets to improve medical research in this distribution. + + + +Presently, the state of medical research in India is deep. There is a hidden issue observing the command over English as a language. We all know that the ability to speak and write in good English is no barrier to the incredible clinical and surgical abilities of Indian doctors across all professions. It is not a requirement for practising good medicines. Though, the International language for research is severe English. It is the de-facto criterion of transmission in the administered medical literature. Therefore, the incapability to communicate in proper English due to the weak power of the language creates an extra difficulty whether it is similar to writing for commissions, conveying with investigators abroad, or clearly in composing an edition using the correct language. + + + +INADEQUATE INFRASTRUCTURE - Many problems need to be recognized in different infrastructural areas. To start with the gap between electricity output and pressure is impacting both manufacturing and overall development. Another problem is the transport area, while the road carrier is the resolution of the Indian transport infrastructure, it is insufficient in terms of integrity, amount, and connectivity. Also, civil flying and landings desperately need modernization. It is predicted that the public area will continue to play a significant part in the manufacturing transport infrastructure. However, the substitutes wanted are much larger than what the public region can contribute. + + + +According to the National Health Policy 2002, the government donation to the health area composes only 0.9% of the GDP. This is quite inadequate. In India, public maintenance of health is 17.3% of the total health maintenance. While in India, the exact is 24.9% and in Sri Lanka and the USA, the exact is 45.4 and 44.4 respectively. This is the major problem of low health criteria in the country. + + + + + + Solutions + + + +MORE HOSPITALS IN RURAL AREAS - This problem can only be solved by an adequate number of hospitals in rural areas. As we know, we do not have the proper infrastructure of hospitals and clinics in villages where almost 75% of the Indian population. We cannot possibly dream of having top health quality in our country when 75% of the population in our country is vulnerable and not provided with good hospitals. + + + +We can improve healthcare in rural areas by organizing operations with transportation benefits such as taxis, hiring with bus services. Apart from this, it can also be improved by working with constituency supporters such as nursing homes when performing community needs analyses. Also, it can be proved by leveraging paramedics and other organization health employees. + + + +LOWERING THE COST OF TREATMENT - The expensive health source problem can be solved by lowering the cost of treatment in hospitals. As this is a well-known fact, not many people in our country are good enough to be able to pay the amount of money that a big hospital asks for. + +Therefore, we can introduce new schemes for destitute and poverty-stricken people to make it easier for them. The expensive health source problem can be solved by giving clients and health care clients more power, reducing the number of medical tests for sufferers, improving pursuits among health care providers. + + + +A LARGE NUMBER OF RECRUITMENTS OF MEDICAL PERSONNEL - This can be solved by recruiting more health personnel. This is because we just have 10 doctors in every 1000 people in our country. + + + +With a size of over 1 billion population, this much is never going to be enough. So, if more health personnel are hired, the load on the existing personnel will be reduced, and hence, they would be offered better treatment. + + + +MORE INVESTMENT IN CAPITAL FOR MEDICAL RESEARCH - This can be solved by using more capital in the research done for medical treatments. This can benefit from making India more independent and could also be very cost-effective for many diseases that have been cured now. + + + +Medical research also provides an opportunity for a young person to be better at their job and hence would always improve the quality of treatment. + + + +HUGE SPENDING IN IMPROVING THE POOR INFRASTRUCTURE OF GOVERNMENT HOSPITALS - The infrastructure of our government hospitals is below average. We can improve this by huge spending to improve their infrastructure because government hospitals are very affordable and for a country like India it's important to strengthen it. + + + +Poor infrastructure of hospitals also means less maintenance and cleanliness of that government hospitals. Hence, they are more captive to diseases.
Infrastructure has a direct impact on the growth and overall development of a country. India is the fourth largest economy but the biggest hindrance to growth and development is the lack of world-class Infrastructures. Lack of proper infrastructure tools down India's GDP growth by 1 to 2% every year. + + + + Problems + +IRRIGATION - Despite having a large-scale investment for irrigation facilities, it is a matter of serious concern that about 60% of the total cultivated area is still dependent on rain. There are delays in the completion of irrigation projects. The development of water resources is planned by the State individually according to their requirements. All major rivers are interstate so the storage and use of water arise state rivalries over water supply. They have been a steady decline in the water table in recent years in several parts of the country, especially in the western dry regions due to the exploitation of groundwater and insufficient storage of rainwater. + +ELECTRICITY - Electricity is a very important form of energy used in home, office, industry for enhancing production. Electric power transmission losses reflect technical inefficiency. While the distribution of electricity in the form of unauthorized use and over-usage is frequently reported. The financial loss per year due to theft of electricity is about 16 billion dollars. The gap between the production of electricity and its demand. There are 0.6 million households that don't have access to electricity. The production of India's electricity infrastructure is seen to be one of the weakest. It fares badly not only in comparison to the developed countries but also in comparison to emerging countries. + +TRANSPORTATION - Transportation is considered the backbone of a country. The quality and connectivity of Indians transportation are inadequate. India's performance regarding Railways and road transportation looks better than air transportation and seaports. The road dynasty of India is relatively better than other countries but the quality of Indian roads looks relatively inferior. Most of the national highways are less than two lanes so the roads are conducted. The quality of transportation affects the GDP of the country as in export and supply chain transportation ads cost. Constructions are going on in the country but the pace is low. + +SANITATION - Sanitation is considered the first impression of a country. Poor sanitation links to the transmission of diseases such as Cholera, diarrhoea, hepatitis. Sanitation reduces human well-being and socio-economic development. One of the basic reasons is contaminated groundwater children pick up the various infections that impair their body and ability to absorb nutrition. Less than 50% of the population has access to sadly managed drinking water in the country. There is no proper disposal system for waste generated. The growth rate of India in sanitation over the last few years has been inspiring. The various schemes like Swachh Bharat mission, customer financing scheme led by MFIs and banks, and innovation and incubation across the private sector and academic Institution. + +PUBLIC SUPPORT - Public support plays an important role in the growth of a country. Common people should work and support hand-in-hand with the government. It is often seen in India that people are not supportive of the government in the infrastructure construction plans. In rural India, people object to construction work like dams, roads, poles for electricity, etc. As they do not want to give up their land and property for construction. Moreover, not all Indian customers are willing to pay for the usage of roads and water. This becomes a huge obstacle for further development. + + + + SOLUTIONS + +MUTUAL AGREEMENT AMONG STATES - During the planning, the government should invest in such a way that the aim of agriculture irrigation can be fulfilled. Irrigation Canal should be linked to the flowing river. The canal linked to the interstate river should be mutually planned among the states. About 89% of total water is consumed in agriculture so the modern method should be promoted to save water which can be used in irrigation. Like sprinkle and drip methods should be promoted for irrigation. + +PRIVATE AND PUBLIC SECTORS WORKING TOGETHER - The government sector can play a role in the development of electricity but it doesn't have to play the central role. Electricity can be handled mutually by the private and government sectors to reform the state electricity boards (SEBs) than has been attempted so far. More power plants should be set up to meet the high electricity demand. And aged machines should be replaced with the latest technology to avoid wastage of energy due to frequent breakdown. As renewables are a larger share of power generation, the transmission grid will need to be updated appropriately. + +INCREASE PACE IN CONSTRUCTION - A modern nation is built upon a smart and efficient transportation system the government is already working on an Rs.10 lakh crore National transport master plan which aims to provide shameless movement for passengers across on multi Modes of transport. To reduce the travel time in railways with the safety of passengers requires an up-gradation of railway tracks, engine, coaches, and improved capacity utilization. Establish an independent regulator that has the power to fix fares and goods tariff rates as well as fair access regulation, licensing, and technical standards. The construction work for roads should be faster than today's pace. And the government should impose reasonable tariffs upon airlines and waterways. + +WASTE MANAGEMENT - Sustainable environmentally friendly toilet technologies should be used. People should be made aware of the importance of hygiene. Every household should be provided with clean drinking water. And strict action should be taken against people who violate cleanliness. Solutions for a proper drainage system is needed for the hour. A long-term waste management solution is required to minimize the spread of disease. + + + +GENERATING EMPLOYMENT OPPORTUNITIES - No Country can succeed until people work hand in hand with the government. The lack of support for the government is a major problem for the country, to reduce this the government should provide employment opportunities while construction work in rural areas. Switching government expenditure from current expenditure, on such things as wages and salaries. Raising revenues by removing the many exemptions and distortions in the current GST structure. There should be transparency in every deal of construction for infrastructure. This will help with picking up the trust of the general population. More subsidies should be provided to the lower-income group on water and electricity.
Social programmes and welfare investments of the Central Government are an abundant portion of the official budget. Both the state and local governments perform vital roles in developing and executing social security policies. However, some welfare measures are distinctly operated by state governments. Each government uses Aadhar Card (which has a unique identification number which every Indian has its own) to distribute welfare measures in India. According to the Directive Principle of State Policy, engraved in Part IV of the Indian Constitution, India is a welfare state. Scheduled Caste and Scheduled Tribes are given special preferences in government jobs, educational systems, and also in Upper and Lower House (Lok Sabha and Rajya Sabha). The Federal government has passed numerous welfare programmes like the Employees' Provident Fund Organization, National Health Insurances, Atal Pension Yojana, Free School Meals (Midday Meals), Pradhan Mantri Gramin Awaas Yojana, Pradhan Mantri Matri Vandana Yojana, Integrated Child Development Services, National Rural Employment Guarantee Scheme, National Social Assistance Scheme, Accident Assurance Scheme, etc. + + Problems +Welfare Reforms are intended to improve the general prosperity of the citizens particularly poor people and the marginalized. Each new system accompanies new welfare plans or with the repackaging of old plans. The administration has been taking different measures yet they have neglected to give solid outcomes because of different reasons. Despite quick financial development in the last two decades with much success in the manufacturing and service areas, the nation keeps on being largely agrarian. Plans for social protection have been able to meet the expectation of the individuals, and in many cases have drastically underperformed. 270 million individuals in India live below the poverty line. Many youngsters have low access to proper and feasible education, families live without essential medical care, the older struggle without annuities, and the jobless face an uncertain future. The pandemic situation makes it even worse. Although various government schemes address these issues, a significant number of them have ended up underachieving their objectives and have proved to be ineffective. Let’s try to understand these problems extensively. + + +FLAWED GRASS-ROOT LEVEL INSTITUTIONS - Various Anganwadi Centers (ACWs) in different parts of India operate without proper functioning. Many observations on the ACWs have been carried out. The observations came under three categories, manpower resource, material resource, and functional aspects. There is inadequate staff, half of them are educated while most of them are uneducated. The buildings of the AWCs are not maintained properly. The facilities of water, toilet, and electricity are non-existent. Indoor air pollution poses a serious threat to one's health. + +EXTREME POVERTY - Poverty is a major drawback in India. The growing population in India is 10% with the major population living in abject poverty. More than 800 million people are considered below the poverty line in India. The "lack of employment" is a major reason for the condition of extreme poverty. Half of the people prefer the slum areas because of the high livable wage that they cannot afford in the metropolitan cities. The poor hygiene conditions in these areas lead to several diseases. + +TOO MANY YET TOO INEFFECTIVE - India’s social protection or ‘welfare’ schemes are plenty yet too inefficient. States are unable to realize such a high number of centrally sponsored schemes. The reason being the lack of resources to implement them on such a large scale. Each of these schemes requires detailed planning and thorough research regarding the ground report of the citizen or a particular section of citizens who require these schemes. It is important to understand the demographic nature of a state before offering them the utilities. A crowded number of schemes hinders the government from focusing on quality and efficient delivery of the amenities to the right people, leading to the ‘Problem of Eligibility’. It means people who should not be getting a benefit get it (inclusion errors), while those who should be getting it don’t get it (exclusion errors). India doesn't need new schemes instead, it requires strengthening and stabilization among competing welfare strategies. Making this right will need vital investments and research in state capacity, which it lacks at this instant. +ELIGIBILITY ISSUE +In a nation of 1.3 billion individuals, many of whom are poor, it is a test to distinguish who is qualified for which advantage. For example, with the lockdown and Covid-19, since enormous numbers of individuals have unexpectedly gotten jobless, the pay levels of people and families have dropped, and a lot more have gotten qualified for benefits. Many have additionally moved from metropolitan to rustic regions, making qualification criteria much more troublesome. This implies the legislature will be unable to precisely distinguish if an individual is qualified for a provincial plan or a metropolitan one, or is qualified by any stretch of the imagination. Regularly, the individuals who ought not to be getting an advantage get it. These are incorporation blunders. While the individuals who ought to get it don't get it. These are prohibition mistakes. Different services that offer such plans have their information bases. Be that as it may, there is neither a central information base nor an instrument for information bases to converse with one another to comprehend who is getting what. + +CASH TRANSFER DILEMMA - There is no consensus among politicians and activists on whether cash transfers can effectively replace schemes such as the public distribution system, which distributes food rations. The government was running an experimental project in three Union Territories to distribute cash instead of subsidized food grains, a third of beneficiaries surveyed said they either had not got any money at all (with or without proof) or was not aware if they had received it. However, the government insists that 99% of the cash transfers were successful. The Abdul Latif Jameel Poverty Action Lab’s researchers were responsible for these findings, which were approved by the government policy Niti Aayog to assess the pilot project. +The project was firstly launched in the Union Territories of Chandigarh and Puducherry in September 2015, and later in Dadra and Nagar Haveli in March 2016. After that, the government has been transferring cash into the bank accounts of beneficiaries rather than giving them food grains by ration shops. These cash transfers are also known as Direct Benefit Transfers (DBT). The study reported that two-thirds of the beneficiaries choose cash transfers over food grains through ration shops, as now they can buy higher-grade quality food grains. However, it was not able to evaluate if the overall food consumption by these households had sunk since the price of food grains is more expensive in the marketplace compared to subsidized ration shops. + +CRIPPLING CORRUPTION - Greed and Corruption are amongst the greatest reasons for the failure of welfare plans. The funds are designated, and the states need to request for these funds, which is subject to the numbers of beneficiaries who are tallied during the BPL (Below Poverty Line) surveys. These BPL records are rarely finished because the whole cycle is hectic and time-consuming. This leads to incorrect information. Corruption makes huge obstructions for poorer sections to avail benefits. This has created an environment where individuals are led to believe that to avail of government benefits, money has to be spent. For example, the cut money scandal that came into the limelight in West Bengal where the ruling party member must be paid to get government benefits. + +CENTRALISATION VS DECENTRALISATION - The prime lapse in India’s financial federal design is fiscal centralization. It is arguably critical for poorer states like Bihar or Madhya Pradesh and has served richer states to more development. High-income states like Kerala can invent and execute their schemes and can considerably leverage fiscal decentralisation to their maximum benefits. However, low-income states are not well-equipped with proper facilitation and expert researchers to undertake such projects by themselves. They need CSS with their centralized design and implementation structure, solely due to their limitations in planning capabilities. The primary challenge for fiscal federalism in India arises from India’s thriving regional disparities between states in terms of various aspects like literacy, infrastructure, and more. Governance capability is the primary reason behind these expanding disparities The States have criticized fiscal centralisation for a long time. Since 1969, the National Development Council has had discussions with the Fourteenth Finance Commission in 2013. State governments objected vigorously against the centralised nature of the CSS, the Chief Ministers especially disliked asking Planning Commission approval for state plans every time. There were several negative consequences, as articulated by state governments, of the proliferation of CSSs and urged a reduction in their quantity and more elevated elasticity in their design structure. + +GOVERNMENT'S STRUGGLE IN INTRODUCING WELL-DESIGNED SCHEMES - While the government copes to discover the resources to propose better-designed schemes without having to end the earlier ones, closing off existing schemes will create political discontent. Some of these schemes include subsidies that deteriorate the allocation of resources. For instance, subsidies for water and electricity arguably cause environmental harm and supply-side difficulties (depleting water table level and power blackouts). Besides, they mostly benefit the higher income classes more than they do the poor – as the poor consume less of the relevant goods or services compared to the upper-income classes. Also, power subsidies favour those who have access to electricity and it’s a fact that the rich possess more electrical appliances or equipment, therefore getting most of the benefits of the subsidies. The poor have considerably little to minimum electrical consumption. There is also a primary problem that subsidies or in-kind transfers inhabit- they do not leave the decision to the recipients as to what their specific needs are. + + +PUBLIC’S ROLE IN ACTION - Many individuals are not even mindful of different plans due to which they can't use the advantages of the schemes. Further ignorance is one of the fundamental explanations behind this. For example, in the midday meal scheme, numerous students go to class just for having meals, uniform dresses, and so on however they don't attend the classes. To accuse the Government alone is unjustifiable. An information drought happens despite the administration's earnest attempts in creating awareness through radio, TV, print, or online media. Unfortunately, these communication efforts regularly don't reach rural regions. For instance, in Uttar Pradesh, perhaps the least fortunate state, somewhere in the range of 2013 and 2017, there was more than $1.3 billion in unspent assets for minority government assistance plans. In Karnataka, even though $735 million was gathered to be utilized as government assistance plans for labourers, just 2.44 percent was utilized because of an absence of consciousness of such projects. The story is more or less the same across other Indian states. Even though there are government plans accessible, the information deficit is extreme. + + Solutions + +OPTIMIZATION OF THE SCHEMES - The government should strive to reduce the number of schemes drastically to a manageable figure, all of which are aimed at the most critical risks. However, discarding any particular scheme, despite being ineffective, will harm some vulnerable groups. Therefore, there has to be a concrete plan for coverage for sufferers in the process of reforming the social protection system, along the lines of the direct benefits transfer (DBT). Any welfare reform that ends a particular social protection scheme should be followed by an endeavour to directly compensate the ‘losers' from the policy change. + + +A COMMON SOCIAL REGISTRY - Building a common social registry could be the answer to this eligibility problem. This registry can provide a door for potential inclusion of qualified people particularly if numerous social projects utilize one basic registry. However, the task of making a common social registry is tedious as the experience of nations, for example, Turkey and the Philippines show. Yet, it is not impossible. The central, state governments, just as well as regional administration already have multiple databases. The first step would be to go over these information bases and discover approaches to combine it with huge data sets, for example, the Public Distribution System (PDS) and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). + +OPTING FOR A CHOICE-BASED APPROACH - We should be centring on beneficiary preferences and taking a choice-based approach. For instance, in the context of food distribution through the PDS, we should propose giving beneficiaries the choice of opting for a cash transfer, instead of policymakers deciding between the form of a transfer (e.g., PDS and DBT). For instance, cash transfers run favourably if there are good banking services accessible including markets, which is not the case for outlying rural areas. However, with the introduction of mobile banking and the PDS being digitized with e-PoS machines, facilitating the portability of benefits, the choice-based approach then sounds like a feasible option. Eventually, this would also put pressure on PDS owners to halt the diversion of their stock to the open market and to maintain quality checks of the rations they supply to the public. + + +FOCUS ON CITIZEN’S CHOICE & EVALUATION OF PLANS - Regular monitoring for each plan at each level should be done on ordinary premises and corrupt ones should be taken care of with an iron hand. Schemes can make more success if they are planned, keeping in mind all prerequisites of the country. The Government should focus on permitting families to decide for themselves whether they need their food ration in cash or kind. Better adaptability in financial and administrative parts, incorporation of local overviews, demographic demands, political, administrative, and local bodies agreement can make schemes more productive. Cash transfers reduce managerial costs, corruption, and various distortions associated with in-kind exchanges. Generally, cash transfers to the poor don't make them work less or spend their money on inessential utilization, which is the usual concern that is raised about cash transfers. + +CREATION OF INSTITUTIONAL SPACE FOR CENTRE-STATE DELIBERATION - The centre is required to reorient itself as a “micromanager” of schemes and programs to perform a far prominent strategic role. By developing national policy structures and rendering technical potential to States to equip and empower them to plan, design, and implement social policy programs. The creation of institutional spaces for centre-state deliberations will assist in balancing these tensions and re-shaping the role of the centre. A revitalized Inter-state council (ISC) tasked particularly with designing a deliberative space for centre-state dialogues on welfare policy and settling the strains that have come to mould centre-state fiscal relations. The 14th Finance Commission had prescribed the formulation of such a body. + +AN AUTOMATION INDEXATION TO INFLATION - We are restraining ourselves mainly to the forms of delivery of existing welfare schemes as opposed to offering new schemes, like a fully-fledged universal basic income scheme, given the fiscal realities. However, we are not opposed to a general means-tested cash transfer scheme (as opposed to a universal or non-means-tested one) or schemes intended at particular demographic sections. A pivotal component of composing such schemes useful would be an automatic indexation to inflation to ensure that their value or utility is not corroded with time. These schemes are vital as they are aimed at the most vulnerable segments of society. + + +CREATING AWARENESS - The public should be made mindful of the currently running schemes in their regions as these plans are intended for them. This should be possible through papers, radio, TV advertising. The administration should allocate specific areas to the officials so that with their help individuals can be made aware and they can maximize the advantage of government assistance plans. Each individual must know his/her rights and entitlements. This lack of awareness of the government's welfare plans can be explained through productive collaboration between the legislature and private enterprise. At the state and national level, there should be a platform that gives simple, precise, and solid data about the welfare schemes, the qualification process, and the application cycle. In India, we have Common Service Centers, which give data about central and state government plans and administrations. However, the information provided by them is limited to a small number of schemes. So, there is a need for such a platform that covers all the schemes.
Problems + + + +HIGHER EMPLOYMENT, LOWER PRODUCTIVITY - India has too many people cultivating too little. Recent surveys show that more than 40 percent of India's workforce is deployed in agriculture but contributes only one-sixth of the GDP of the country. Low soil fertility, lack of use of scientific crop rotation, using low-quality seeds, using degraded pesticides and fertilizers, crop failure due to natural calamities are some of the main causes of low yield per unit of land. Low productivity leads to low profitability. It leads to a reduction in the income per labour force. Due to this, many farmers want to shift to other fields but because of a lack of employment opportunities, they are bound to continue with farming only. + + + +LAND OWNERSHIP - From farm contributions to farm loan releases, the Indian Government consumes crores on farmer interest, but these efforts will be inappropriate unless they can undertake an increasingly discouraging barrier: lack of land. The temporary figures from the latest agriculture survey indicate how land, the most significant information about agriculture, is getting more fragmented. Although the privilege of farming land in India is legally widely circulated, there is some extent of concentration of land carrying. Inequality in land measurement is also due to the proof that there are systematic changes in land ownership in India. It is acknowledged that large areas of land in India are held by a reasonably small category of rich farmers, landowners, and money-lenders, while the huge majority of farmers control a very minor amount of area or no area at all. + + + +Additionally, most holdings are minor and uneconomic. So, the benefits of large-scale agriculture cannot be developed and cost per division with 'uneconomic ' claims is increased, output per hectare is incomplete. As a consequence, peasants cannot generate a substantially commercial abundance. So, they are not only inadequate but are always an obligation. + + + +NO IDEA OF CROP ROTATION - The products that are evolved in India are divided into two large sectors: food crops and non-food crops. While the abandoned comprise food grains, sugarcane, and liquids, the recent contains several kinds of fibres and oilseeds. + +In recent years, there has arisen a fall in agricultural output mainly due to a fall in the production of non-food articles. Additionally, the rabi output has become as important as the Kharif output in the late 1990s. In 1999-2000, for instance, the total seed output of 209 mn. tones. This reflects a structural change in farming output. + + + +INVOLVEMENT OF MIDDLEMEN DUE TO POOR AGRI-INFRASTRUCTURE + + + +Agri-infrastructure like cold storage, warehouses, transportation facilities, etc are not developed in many parts of the country. Due to the unavailability of transportation facilities, farmers do not have access to nation-wide or even distant market places. And because of a lack of proper storage facilities, farmers are forced to sell their crops to local traders or middlemen at whatever price is offered to them. + +Farmers get a too-small share of the eventual price of the produce and middlemen to gallop too much of it. + +Also, India incurs a loss of around 3 lakh crores of rupees due to the absence of food processing units and modern cold storage facilities. + + + +USE OF POOR-QUALITY SEEDS - Seeds are the basic information of natural material for the farmers to grow products. But there is a lack of availability of good integrity of grains in the market. And if the good quality grains are accessible, they are so costly that the poor and frontier farmers are not able to afford it. Due to this, farmers are bound to use the formal seeds, the conventional seeds which are less valuable and yield fewer productions. Most of the certified cereals trades in India are personal companies. In India, not much purpose has been made of modified categories of grains. The main grains such as rice, millets, and pulses are still evolved generally with unimproved grains. + + + +PRIMITIVE TECHNOLOGY - Majority of farmers in India, especially in unsophisticated areas, use draught animals like buffaloes, bullocks, and camels for ploughing and rest agricultural operations. Also, activities like ploughing, levelling, sowing, weeding, spraying, harvesting, and threshing are mainly done by human hands. This leads to wastage of energy and manpower and reduces efficiency and becomes costlier in the long run. + + + +TOO MUCH FOCUS ON CEREALS - Food demand in India is stagnant and supply is exceeding demand. So now India has surpluses in most of the food categories. Due to this, farmers do not get a fair amount for their produce. Government policies have been too focused on food grains, which are only one-fifth of the total agricultural production. + + + +RISK IN PRODUCTION - The quantity and quality of goods are highly affected by various uncontrollable factors like weather, disease, pests, labour strike, price fluctuations, etc. As the agricultural output is the main source of income for the farmers, they have to bear a very high risk as its failure may take away everything. Due to the deprivation of knowledge, less than 2% of farming is only insured under crop insurance schemes. + + + +AGRICULTURAL MARKETING - The Indian farmer has no awareness of marketing. He believes in evidence obtained from the businessmen and money lenders of the community. Generally, the Indian farmers are uneducated and cannot read the newspaper. Thus, they do not have adequate information about the market. One of the crucial reasons for the low revenue of Indian farmers is the problem in marketing their products. Due to the minor size and circulated nature of farming holdings, productivity per acre is poor. Therefore, the compilation of these sediments for the motive of trade presents a severe difficulty. Agricultural transaction difficulties arose due to the lack of transmissions, i.e., linking the manufacturing centres with the urban sectors which are the main centres of consumption. The complication of transmission prevents the farmer from trading his goods. So, he has to depend on the number of intermediaries for the removal of his products at reasonable prices. Also, the lack of standardization and estimating is obvious in the Indian Agricultural dealing, due to which fixing a deal in association with these stocks becomes complicated. Due to the lack of reasonable standardization and estimating the consumers have a problem in obtaining the product. + + + + Solutions + + + +ADEQUATE EMPLOYMENT, HIGHER PRODUCTIVITY - The productivity of land can be increased by using new and high-quality seeds, increasing soil fertility by the implementation of crop rotation practice, and by using good quality manure, fertilizers, and pesticides. Labour intensive techniques of agriculture should be shifted to capital intensive techniques. By using modern machines like tractors, balers, combiner, ploughs, mowers, planters, and sprayers, labour dependency can be reduced and at the same time, it saves time and cost as well in the long-run. Lesser the people, the higher the per-capita income. The farmers should also be engaged in other sources of income like horticulture, Vermiculture, Poultry farm, livestock. New employment opportunities should be generated for the surplus workforce. Their energy and enthusiasm should be tapped in a better productive way. + + + +INTRODUCING REFORMS FOR EQUAL OWNERSHIP - Introducing reforms and ensuring that it is implemented properly for the poor can solve this problem. It is because, in our country, a lot of zamindars procure the lands of the poor peasants and them and they are not able to fight their cases properly. Therefore, it is a must to make sure that their agricultural lands are with them so that they can farm easily over there and increase the output of agricultural production. + + + +PRACTICING THE CROP ROTATION TECHNIQUES - In our country, very few people are aware of crop rotation. Crop Rotation is a technique in which we plant different crops on the same plot for different seasons. This improves the health of the soil, optimizes nutrients in the soil, and conflicts pest and weed pressure. If our farmers start doing this, then this will yield more agricultural production and that too of high production. + + + +REMOVING INTERMEDIARIES - Improving farmers’ share in revenue is nearly impossible without eliminating intermediaries. The government should open national markets for farmers. Cartel, middlemen, and monopolies must be diluted through legal interventions. Good and cheap transportation facilities should be provided to help the farmers in reaching the markets. National level storage chains should be created by the government. + + + +USE OF HIGH-QUALITY SEEDS - In our country, poor farmers are not aware of the fact that seeds play a very crucial role in the output of any agricultural land. Poor quality seeds kill the crop quality a lot and hence make it less useful. But if high-quality seeds are used, it produces strong and more uniform plants. Plants grow faster and they are more resistant to distress and disease. Therefore, the end product will always be much better than a poor-quality seed. + + + +IMPROVE TECHNOLOGY ACTION - Technology can be used to record, monitor, and analyse the allocation of funds released for the relief of farmers. An open, digital, and transparent platform is needed for this purpose. Direct benefits transfer, whether cash payment for insurance payment, fertilizer subsidy or minimum income guarantee, helps in piping the funds in the right hands. + + + +SHIFT FOCUS FROM FOOD CROPS TO COMMERCIAL CROPS - The government should now shift its focus to commercial crops, high-value crops, crop substitution, and exports to lift farmers' incomes. The central government as well as the state government must provide financial as well as non-financial incentives to boost up the production of cash crops. Agricultural surpluses must be exported to increase farmer's income. + + + +INSURANCE OF AGRICULTURAL RISKS - Farmers should take insurance for their crops under Pradhan Mantri Fasal Bima Yojana. Although the compensation paid to them is not sufficient. The government should launch a scheme that covers production as well as price risk. + +Contract Farming can also be a solution. In this, the contractor and farmer come into a contract for a fixed period, in which all the input requirements are met by the contractor. He is the buyer of the entire production and is the sole risk bearer. Facilities like cold storage, food processing, etc are also provided by the contractor + + + +MARKETING OF CROPS DIRECTLY TO THE COMPANIES - In our country, the intermediaries are very much responsible for the poor condition of our farmers. This is because they earn all the profits by selling the vegetables and fruits at a higher price and giving just a penny to these farmers. But if the farmers directly market their ground vegetables and fruits to the market, then they will be able to decide the price they want and not the intermediaries. This can improve the financial conditions of our farmers to a great extent.
Problems + + + +The government spends more, earns less - The expenditure of the government is more than its income. The combined fiscal deficit of the centre and the state is around 7% of the GDP, which stands as the second-highest across the emerging markets, only after Brazil. Government generates revenues from various sources like taxation, running Public Sector Undertakings (PSUs), etc. The income from taxation and PSUs are not sufficient to meet the growing expenditure. Even though the revenues are not very high, the government had to overrun its revenue to meet problems like poverty, unemployment, illiteracy, etc. The continued spending on development programmes by the government does not generate any additional income. Moreover, it increases the deficit. To finance this deficit, the government borrows money from national and international financial institutions. Higher deficits tend to increase the cost of borrowing and lower private investment. + + + +States overspend and their budgeting lacks transparency - In recent years, states have overspent and consolidated huge outstanding debts. The financial budgets of states lack accountability and transparency. Recently India's central government has decided to borrow a large sum of Rs. 1 lakh crore from the bond market and pass it on to the states to compensate their losses related to the GST. Despite a significant increase in state funds, its fiscal situation is a cause of concern. + + + + + + When the deficit increases, the share of capital formation out of budget decreases - The capital increase signifies the rise in physical capital such as machinery, factories, transport equipment, bridges, dams, power projects, irrigation systems, etc., to imply the creation of real assets. Capital formation also leads to the development of human capital such as education, health, developing skills, etc. Thus, it has become a prerequisite to maintain capital formation to achieve a stable economy. + + + +Government debt dynamics is unstable with large variability - Therefore, it lacks credible future predictability. It has been stipulated that the rise in the deficit will make the debt dynamics more unstable. The debt to GDP ratio being unstable and very high India faces a probable risk of sovereign default. Growing globalization has resulted in the rise of external vulnerability as a short-term component of total external debt is accelerating sharply. + + + +When the deficit rises, debt increases with an added value of interest - The deficit is the amount of money borrowed by the government in a single year. The national debt is the cumulative amount of money that the government borrowed throughout the nation's history. The interest paid on this deficit is the expense of government borrowing. Significantly, it increases spending without beaming any benefits. If a deficit isn't paid, it becomes debt. + + + +When the deficit increases, the government slices salaries - The increasing deficit has already affected negotiations over whether to approve additional spending. Thus, spending exceeds income and each year's deficit adds to the debt. + + + +As the deficit rises, the interest rate increases - Each year interest rate increases which result in greater demand. The interest must be paid each year and it becomes difficult to raise funds as well. An increase in the budget deficit results in a large number of bonds to be sold to finance the deficit. The government is thus forced to offer high rates of interest. + + + + Solutions + + + +The government should take measures to increase its income and cut down expenditures - FRBM Review Committee has recommended that the Union government fiscal deficit as well as a combined fiscal deficit of all states, should be brought down to 25 percent of GDP by 2022-23. Sticking to the path of fiscal prudence is very important for India. As the government generally spends a large part of its income in areas that do not generate an immediate return like the social sector, defence, etc, it should spend the rest of its income highly efficiently. Sufficient attention should be given to boost exports. The government should improve financial discipline and facilitate modernization in the PSUs. Private investment and managerial capabilities should also be utilized effectively to improve the performance of the PSUs. + +An independent Fiscal Council should be set up to monitor the fiscal deficit, analyze, and identify the areas where spending should be increased and decreased accordingly. + + + +Review the accounts - The capacity of the state government should be pushed so that they can dig into the details of finances at their level and be able to identify and curb the unnecessariness to bring fruitful results. The state government must achieve its predetermined targets at the time to earn positive revenue. Compulsory metering, up-gradation in technology, revision of period tariffs, and implementation should be taken seriously. Notably raising tariffs will lead to rising fraudulent, theft, and other malpractices which will result in aggregate commercial losses. Therefore, adequate measures should be taken by states to check such losses. State-level fiscal responsibility must be updated. State government must curb its primary expenditure to avoid their increasing dependence on borrowed funds. + + + +Increase tax rates and cut government expenses - Higher tax rates help to reduce the budget deficit. It depends on the time a tax rate is increased. During a recession, an increase in tax rates will result in a significant drop in spending. During high growth, increased tax rates won't harm much spending. The certitude depends on the type of tax, chosen to increase. + + + + A research team can make a list of future contingencies - This would help India to be ready for the upcoming ambiguities. The only solution to this discernible fact is the creation of savings, effective mobilization of savings, and investment of savings. It is the savings that save us in the real life of drama as well as the economy of India. The savings are transformed into capital. + + + +The government can issue bonds to borrow money - It may be convenient for countries to borrow by issuing government bonds. If a country has material imports that they need to pay for in foreign currencies, it would require foreign reserves to do so. + + + +It might be controlled through money printed by the RBI - It directly depends on the taxation policy of the government and the income of individuals. Higher-income people help them to save more as compared to lower-income. In the long run, government spending must be controlled with low spending commitments and by remarkably reducing spending to sustainable levels.