{"id":5488,"date":"2011-12-18T08:34:38","date_gmt":"2011-12-18T12:34:38","guid":{"rendered":"http:\/\/www.orissalinks.com\/orissagrowth\/?p=5488"},"modified":"2011-12-18T08:34:38","modified_gmt":"2011-12-18T12:34:38","slug":"t-n-ninan-non-agricultural-incomes-are-typically-five-times-agricultural-incomes-the-way-to-even-out-the-imbalance-is-to-get-people-off-the-land-and-into-non-agricultural-occupations","status":"publish","type":"post","link":"https:\/\/www.orissalinks.com\/orissagrowth\/archives\/5488","title":{"rendered":"T. N. Ninan: “… non-agricultural incomes are typically five times agricultural incomes. The way to even out the imbalance is to get people off the land, and into non-agricultural occupations.”"},"content":{"rendered":"

Following are excerpts from T. N. Ninan’s Business Standard lecture reported here<\/a>.<\/p>\n

… productivity growth in Indian agriculture had been poor, so rural incomes were not growing fast enough. In its effort to deal with this, the government was pumping subsidies and income transfers into the countrywide, to put money in people’s pockets — which the recipients were spending. Since this expenditure was not matched by productivity growth, it was causing inflation. …<\/p>\n

If you look for the root cause of the power sector’s problems (high losses, disincentive for investors), it boils down to the virtually free electricity provided to farmers. That can’t be corrected because farmers don’t earn enough to be able to pay a higher electricity tariff. And there is a limit beyond which it becomes impossible for other users to cross-subsidise power to farmers; high electricity tariffs are already a burden for exporters who compete against rivals in countries that enjoy lower power tariffs. So you can’t fix the power sector’s problems without fixing agriculture. …<\/p>\n

The bald truth is that half of India’s workforce toils in the fields to generate one-sixth of GDP. Since the other half produces the remaining five-sixths, non-agricultural incomes are typically five times agricultural incomes. The way to even out the imbalance is to get people off the land, and into non-agricultural occupations.<\/span> But urbanisation and the growth of non-agricultural employment have been slow in India, an important reason being the stifling of industries that can provide entry-level, low-value work. China showed the way by promoting Township and Village Enterprises (TVEs), and encouraging through them the manufacture and export of simple products like toys and shoes. Rajiv Gandhi, on his path-breaking visit to China in 1988, visited one such TVE outside Shanghai which was making and exporting tricycles of a basic kind. India missed the bus that China caught, but it can still catch some others — like travel and tourism. …<\/p>\n","protected":false},"excerpt":{"rendered":"

Following are excerpts from T. N. Ninan’s Business Standard lecture reported here. … productivity growth in Indian agriculture had been poor, so rural incomes were not growing fast enough. In its effort to deal with this, the government was pumping subsidies and income transfers into the countrywide, to put money in people’s pockets — which […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70],"tags":[],"class_list":["post-5488","post","type-post","status-publish","format-standard","hentry","category-agriculture-all"],"_links":{"self":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts\/5488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/comments?post=5488"}],"version-history":[{"count":0,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts\/5488\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/media?parent=5488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/categories?post=5488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/tags?post=5488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}