22 May 2023 : The Indian Express

Editorial 1: A seat at the table

Context:

• Recently, Ravneet Kaur, a 1988-batch Punjab-cadre IAS officer, has been appointed first woman to head the Competition Commission of India (CCI) for a period of five years.

Status of women:

At the international level

• International Parliamentary Union’s annual Women in Parliament report, which shows that the global proportion of MPs who are women is only 26.5 per cent.
• One fifth of major corporations have pledged to go Net Zero by 2050 but do not proactively include women at the board level.
• Research reveals that women are more likely to experience deaths from heatwaves and climate disasters in France, China and India and from tropical Cyclones in Bangladesh and Phillipines.
  • They face increased safety and health risks due to inadequate infrastructure and unequal burden of domestic care.
  • Extreme heat raises incidences of still birth and vector borne diseases which worsens maternal and neonatal health outcomes.
• Women work harder in lower- and middle-income countries to get food, water and fodder during extreme weather events.
• Young girls drop out of schools to support their mothers.
• Women have less than 20% ownership of land due to legal and cultural constraints, even lesser in North Africa and West Asia and Sub-saharan Africa.
• As per the United Nations, 60% of world’s hungry and malnourished are women.
  • International Food Policy Research Institute (IFPRI) estimates that climate change could lead to an additional 1.2 million stunted children by 2030 especially girls.
  • More impact on girls due to unequal access to food, health care and education.

At the National Level

• Despite being almost 50% of the population, Indian Women in parliament have a share of meager 14.5%.
• Literacy rate of women in India is about 65% according to Census 2011.
• Women over 25 with secondary education are only 41.8% as compared to Men at 53.6%.
• Women in labour force are at 27.2% as compared to Men at 78.8%.
• At the International level, Gender Inequality Index (GII) of United Nations Development Programme (UNDP) ranked India at 122nd out of 191 in 2021.
• Similarly, Global Gender Gap Index of World Economic Forum (WEF) ranked India at 135th out of 146 in 2022.
• Non implementation of Law: Mary Com Committee found the absence of Internal Complaints Committee (ICC) in 16 out of 30 sports federations (including WFI) against the mandate of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
• The current global women in workforce participation rate are under 47% while for men it is 72%. 
• Globally women enjoy only 77% of the legal rights that men do. At the current pace, it would take at least 50 years for legal gender equality.
• The incidence of anaemia in women is about 57% as per NFHS 5 report.
• According to a United Nations Children’s Fund (UNICEF) study conducted in 2011 only 13% of girls in India are aware of menstruation before menarche.

Achievements of Women:

• Paris Climate Agreement 2015 was successfully steered the global diplomatic effort under the leadership Christiana Figures of Costa Rica.
• Equator Initiative Award was won by Komala Pujari in 2003, from Odisha for conserving local varieties of paddy and promoting shifting to natural farming.
• Chipko movement by the women of Uttarakhand’s Chamoli district was a pioneer in environmental conservation in India.
• Many women have reached the top of their field. They have broken the shackles of gender stereotypes and stood to achieve their dreams and goals. For instance:

Issues of Concern:

• Under Representation: Women continue to remain underrepresented at political, economic and social leadership levels.
  • In the workforce, starting from entry-level jobs to high-paying roles, this underrepresentation gets worse in senior management positions.
  • Deloitte report 2023 says that 91% women at senior positions are unhappy with their organizations on gender diversity and gender support policies.
  • Indian Parliament and state legislatures have just around 12-13% of representation of women.
  • As per Inter-Parliamentary Union (IPU) and UN Women report, India ranks 148 out of 193 countries in the number of elected female representatives in parliament.
• Insufficient Maternity Leave: During child-rearing years, the unemployment is longer, they have a much harder time getting rehired.
  • Finland allows seven months of leave for employees, yet such countries are few.
  • India’s Maternity Benefit (Amendment) Act, 201 7 (the Act) has increased the duration of maternity leave from 12 weeks to 26 weeks for two surviving children. 
  • However, the Indian Maternity Benefit Act, does not apply to women who are self-employed, or at workplaces that have less than 10 employees. 
• Mental/Physical stress and harassment: About 30-70% of women in different kinds of jobs face unwelcome verbal, visual, non-verbal or physical harassment.
  • In India, Deloitte report 2023 indicated that 53% working women in India have high levels of stress and mental health issues.
• Unequal Pay: Research finds that the median salary for women is roughly 22 percent lower than the median salary for men.
  • In India, the Labour Bureau in India has found that in rural areas in the agricultural sector, the daily wage for men is ₹264.05 and ₹205.32 for women.
  • In non-agricultural sects, the average daily wage rate for men is ₹271.17, while for women it is ₹205.90.
• Unpaid Caregiving and Family Duties: Women are expected and forced to move in and out of employment, depending on their family’s needs. Reasons such as a mother’s responsibility, dividing time between household activities and office, issues created for going on business Tours/training, safety concerns, etc are the few family issues faced by women workforce.
• Glass Ceiling: Women not only in India but across the globe face a social barrier preventing women from being promoted to top jobs in management.
• Safety Concern: In India, despite of continuous efforts in the field of Safety, women are threatened by various acts via feticides, domestic violence, rape, trafficking, forced prostitution, honour killings, sexual harassment at workplace etc
• Globally, the Covid-19 Pandemic disrupted the participation of the women workforce more than men.
• Gender gap in employment rates remains among highly educated women and men in some countries.
• Data issue: Though most work in India is informal like agricultural or domestic work which often doesn’t get counted.

Steps taken by the Government:

• "Saksham Anganwadi and Poshan 2.0" during the 15th Finance Commission period 202l-22 to 2025-26.
  • Saksham Anganwadi and Poshan 2.0 is an Integrated Nutrition Support Programme. It seeks to address the challenges of malnutrition in children, adolescent girls, pregnant women and lactating mothers through a strategic shift in nutrition content and delivery and by creation of a convergent eco-system to develop and promote practices that nurture health, wellness and immunity. 
• 33% Reservation in Panchayats and Local Bodies through 73^rd and 74^th Amendments 1992.
• Gender Budgeting– This concept was first introduced in Australia in mid 1980s & India incorporated this in its budget since 2005-06.
• Beti Bachao Beti Padhao Scheme: It was launched on 22nd January 2015 with an aim to address declining Child Sex Ratio (CSR) and related issues of empowerment of girls and women over a life cycle continuum.
  • The objectives of the scheme are, to prevent gender biased sex selective elimination, to ensure survival and protection of the girl child and to ensure education and participation of the girl child.
• MUDRA Yojana (Micro Units Development and Refinance agency Ltd) 
  • It is one such scheme which was launched on 8 April 2015 in which loans upto Rs. 10 lakh are provided to women entrepreneurs, without any collateral.
  • For instance: A woman namely Kamla daily wage labourer from Panipat has taken a loan of Rs. 45,000 from State Bank of India in order to start work of beauty parlour and she is engaged in gainful employment with dignity now.
• Mission Shakti’ (Integrated Women Empowerment Programme): It aims for the safety, security and empowerment of women and launched for implementation during the 15th Finance Commission period 202l-22 to 2025-26. The norms of ‘Mission Shakti’ will be applicable with effect from April 2022.
  • It aims at strengthening interventions for women safety, security and empowerment. It seeks to realise the Government’s commitment for “women-led development‟ by addressing issues affecting women and by making them equal partners in nation-building.
• UJJAWALA: It is a “Comprehensive Scheme for Prevention of Trafficking for Rescue, Rehabilitation and Re-Integration of Victims of Trafficking for Commercial Sexual Exploitation”. 
  • It aims to prevent trafficking of women and children through social mobilization and involvement of local communities.
  • To facilitate rescue of victims and to provide both long-term and immediate rehabilitation.
  • The scheme also has provision for shelter, food, clothing, medical treatment including counselling, legal aid and guidance and vocational training for the victims of trafficking.
• Swadhar Greh Scheme: It is a programme for the victims of difficult circumstances in need of institutional support for rehabilitation so that they could lead their life with dignity.
  • Under the Scheme, Swadhar Greh will be set up in every district with capacity of 30 women.
• Pradhan Mantri Matritva Vandana Yojana (PMMVY): Launched in 2017, it is a Centrally Sponsored Conditional Cash Transfer Scheme.
  • The maternity benefit under PMMVY is available to all Pregnant Women & Lactating Mothers (PW&LM), excluding PW&LM who are in regular employment with the Central Government or the State Governments or Public Sector Undertakings (PSUs).
  • Under the scheme Rs.5,000/- are provided to the eligible beneficiary in three installments during pregnancy and lactation in response to individual fulfilling certain nutrition and health seeking conditions.
  • The eligible beneficiary also receives the remaining cash incentive as per approved norms towards maternity benefit under Janani Suraksha Yojana (JSY) after institutional delivery so that on an average, a woman gets Rs.6,000/-.
• One Stop Centre Scheme: Launched in 2015, OSC is a sub-scheme of the National Mission for Empowerment of Women which also includes the Indira Gandhi Matritva Sahayog Yojana.
  • The scheme is funded by the Nirbhaya fund. The OSC scheme provide a range of integrated services under one roof including police facilitation, medical aid, legal aid and counselling, psycho-social counselling and temporary shelter to women affected by violence or in distress.
• Sabla, Rajiv Gandhi Scheme for Empowerment of Adolescent Girls: It aims at empowering Adolescent Girls (AGs) (11-18 years) through nutrition, health care and life skills education.

Way Forward:

• The adoption of the 2030 UN Agenda for Sustainable Development and the resolve of world leaders “to achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value” (Sustainable Development Goal (SDG) 8, target 8.5.) and “to achieve gender equality and empower all women and girls” (SDG 5) by 2030 are proof of that awareness.
• In India, the government has come up with several initiatives for improving opportunities for women workforce-
  • Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
  • Maternity Benefit (Amendment) Bill, 2016.
  • Karnataka and UP have allowed factories to employ women on night shifts.
• NGO’s like Azad Foundation’s Women on Wheels program empowers impoverished women in India by providing them with a stable source of income and a safe environment where women can travel without fear of being harassed.

Conclusion:

• According to World Bank report, global GDP could increase 26 percent by closing the gaps between women and men in the workforce, which would benefit both advanced and developing countries. A McKinsey Global Institute report finds that $12 trillion could be added to global GDP by 2025 by advancing women’s equality. This rise in GDP can significantly help achieve India’s goal of becoming a $5Trillion economy by 2024.

Editorial 2: Animal Spirits are hushed and elusive

Context:

• Recently, RBI governor Shaktikanta Das said India's GDP is expected to grow 7 percent in FY23. 

Key economic indicator statistics about the Indian Economy:

• India is currently the fastest growing major economy in the world in 2023.
  • India's economy is the world's the third-largest by purchasing power parity (PPP).
  • With a nominal GDP of $3.7 trillion, India is the world's fifth-largest economy.
  • India had witnessed perhaps the sharpest absolute drop in GDP among the major economies of the world in 2020-21 because of its draconian lockdown; and the current growth-rate is exaggerated by the low base caused by that drop from which it is being counted.
• As per PIB, Fiscal Deficit to be at 5.9%in fy 2023-24, Revenue Deficit to be at 2.9 % in fy 2023-24.
• India’s Current Account Deficit (CAD) narrowed sequentially to $18.2 billion in the quarter ended December 2022, or 2.2 per cent of gross domestic product.
• As of December 16, 2022, India's Forex Reserves stood at $563.499 billion, with foreign currency assets accounting for $498.5 billion.
• India’s exchange rate is at 1 US Dollar is equivalent to 82.76 Indian Rupee as of today.
• India has one direct tax payer for every 16 voters. Only 1% of India’s population pays income tax. India's Tax to GDP Ratio is 16.6 per cent, which is much lower than the emerging market economy average of 21 per cent and OECD average of 34 per cent.
• India’s Gross Savings Rate was measured at 30.2% in Mar 2022, compared with 30.2% in the previous year. 
• According to the recent CMIE Report, unemployment rate in India is 8.11% (April 2023).
  • The urban unemployment rate declined to 7.93% in February from 8.55% in the previous month while the rural unemployment rate rose to 7.23% from 6.48%.
• India has a high public debt with 83% of GDP, while its fiscal deficit stood at 6.4% of GDP.
• The Investment-to-GDP Ratio fell from 34.3 per cent in 2011-12 to 27.3 per cent during the pandemic year of 2020-21.
  • While it has risen since then, excluding the pandemic year of 2020-21, the investment ratio has averaged around 29 per cent since 2014-15.
• India still remains a bright spot, likely to grow 6.7% in 2024: UNDESA report.
  • The IMF for instance expects the Indian economy to grow at 5.9 percent in 2023-24 which is considerably lower than its figure of 6.8 percent for 2022-23.
• Inflation In India Is expected to decelerate to 5.5 % in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation.
  • Reserve Bank of India’s rate-hiking spree, which led to a cumulative increase of 250 basis points in the repo rate since May 2022
• India's industrial output, as measured by the Index of Industrial Production or IIP, in March 2023 declined to 1.1 percent, data from the Ministry of Statistics.
• Share of Gross Value Added in GDP for Agriculture is 18.3% (2022), Industry about 25% (2021) and Services at 53% (2021).
• Inequality in India:
  • As per Statista and Credit Suisse report, at the end of 2021, the wealth Gini coefficient of India stood at 82.3 (High). The values remained since 2020, however, it was a significant increase compared to 74.7 in 2000. 
  • As per Oxfam report, India's top 1% owned more than 40.5% of its total wealth in 2021.
    • In 2022, the number of billionaires in the country increased to 166 from 102 in 2020, the report said.

Key Economic reforms by the Government:

Direct and Indirect Tax Reforms:

• Tax rates were significantly reduced in 2019 to attract more investments and facilitate job creation.
  • Taxation Laws (Amendment) Ordinance 2019 has drastically reduced the tax rate to 15% for new manufacturing domestic companies if not availed any specified exemption or incentive.
  • These companies have also been exempted from Minimum Alternate Tax (MAT). MAT has been reduced to 15%.
• Faceless Assessment has been implemented in the assessment process, reducing touch points with the tax administration and facilitating the faster resolution of concerns and issues.
• Direct Tax Code is a major reform in the tax system where the government aims at simplifying the tax laws and regulations into a single legislation. Major proposals include:
  • The government adopted the proposed increased tax slabs in the financial year 2012 – 2013.
  • Corporate Income Tax should be 30% with no surcharge on corporate tax.
  • The Minimum Alternate Tax (MAT) rate should be 20% from the earlier tax rate of 18.5%.
  • Few schemes like PF, Gratuity, pension funds, etc would still come under EEE.
• Abolition of Dividend Distribution Tax (DDT):  In order to increase the attractiveness of the Indian Equity Market and to provide relief to a large class of investors and companies, the Finance Act, 2020 removed the Dividend Distribution Tax.
  • The dividend income shall be taxed only in the hands of the recipients at their applicable rate.

Indirect Tax reforms:

• Goods and Services Tax (GST): This indirect tax system was introduced to collect and reduce tax evasion. In 2017, India finally started the transition to a single GST.
  • The integration of State and Central indirect taxes in the GST led to the abolition of entry tax and the Central Sales Tax (CST).
  • This has had important spillover effects on the economy. The abolition of the entry tax has reduced trip times on the major road corridors leading to cost benefits for the manufacturers.
  • It is an Indirect tax which introduced to replace a host of other Indirect taxes such as VAT service tax, purchase tax, excise duty, and so on. GST levied on the supply of certain goods and services in India.
  • It is one tax that is applicable all over India.
• Labour Codes: The central government also passed a series of four labour law reforms that are designed to streamline the regulation of labour.
• Agricultural reform bills were brought to boost openness and transparency in the agriculture sector for doubling the farmer’s income.
• Manufacturing Boost by Production-linked incentive (PLI) scheme for Sustained growth:

Structural Reforms are a Key Priority of the Government:

• PM Gati Shakti National Master Plan has been launched to bring swiftness in implementation of infrastructure projects.
• Soil Health Card, Neem Coating of Urea, Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, PM Kisan Samman Nidhi Yojana to name a few.
• Rs.15 Lakh Crore worth agricultural loans are being provided at 4% interest; 77,000 Crore relief has been given to farmers in last 5 years.
• Under the initiative of E-Mandi, 1,000 mandis have been connected to the internet and transactions worth one lakh crore happened so far.
• Insolvency and Bankruptcy Code, 2016 provides a time-bound process for resolving insolvency in companies and among individuals.
• Samagra Shiksha Scheme is an umbrella scheme for the school education.

Key economic policies launched

• Establishment of NITI Aayog and implementation of Cooperative Federalism.
• Bringing Aspirational District Programme to uplift the poor and backward areas to reduce inequality and ensure equitable distribution of benefits of development.
• Key indices of Education, Health and Skill development launched apart from India Human Development Index to measure the impact and outcomes of the policies.
• Establishment of Monetary Policy Committee to ensure balance between growth and inflation along with better management of economic development.

Conclusion:

• India’s economy has been robust on the base of strong macroeconomic indicators and has proved to be resilient in the face of crisis like the Covid-19 pandemic. India needs to take economic decisions which increase efficiency, transparency and accountability apart from robust implementation mechanisms for human development in education, health and skill development. This will help India achieve $5trillon economy by 2024.