Index Numbers of Wholesale Price in India (Base: 2004-05=100)

Index Numbers of Wholesale Price in India (Base: 2004-05=100)

Review for the month of October, 2016

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) for the month of October, 2016 rose by 0.1 percent to 182.9 (provisional) from 182.8 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.39% (provisional) for the month of October, 2016 (over October, 2015) as compared to 3.57% (provisional) for the previous month and -3.70% during the corresponding month of the previous year.  Build up inflation rate in the financial year so far was 4.34% compared to a build up rate of 0.45% in the corresponding period of the previous year.

Inflation for important commodities / commodity groups is indicated in Annex-1 and Annex-II.

The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group declined by 0.8 percent to 261.8 (provisional) from 263.9 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for 'Food Articles' group declined by 0.3 percent to 278.8 (provisional) from 279.6 (provisional) for the previous month due to lower price of urad (6%), masur and fruits & vegetables (4% each), arhar, bajra, maize and mutton   (3% each), jowar (2%) and moong, fish-inland and condiments & spices (1% each).  However, the price of gram (18%),      ragi (9%), poultry chicken (5%) and fish-marine, coffee and milk (1% each) moved up.

The index for 'Non-Food Articles' group declined by 3.1 percent to 223.2 (provisional) from 230.3 (provisional) for the previous month due to lower price of soyabean (10%), groundnut seed and flowers (8% each), raw cotton (5%), guar seed and raw rubber   (4% each), gingelly seed and castor seed (3 % each), sunflower, hides (raw), raw silk and rape & mustard seed (2% each) and raw wool, skins (raw), coir fibre and mesta (1% each).  However, the price of fodder and linseed (2% each) and cotton seed and safflower (kardi seed) (1% each) moved up.

The index for 'Minerals' group rose by 0.2 percent to 210.9 (provisional) from 210.4 (provisional) for the previous month due to higher price of limestone (8%), copper ore (4%), zinc concentrate (2%) and crude petroleum (1%).  However, the price of magnesite (6%), iron ore, phosphorite and sillimanite (4% each), manganese ore (3%) and chromite (1%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 1.0 percent to 187.3 (provisional) from 185.4 (provisional) for the previous month due to higher price of aviation turbine fuel (4%), petrol, furnace oil and high speed diesel (2% each) and kerosene and LPG (1% each).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.2 percent to 157.4 (provisional) from 157.1 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ' Food Products ' group rose by 0.3 percent to 193.0 (provisional) from 192.5 (provisional) for the previous month due to higher price of gram powder (besan) (14%), cotton seed oil (3%), vanaspati, gola (cattle feed), tea dust (unblended) and ghee (2% each) and powder milk, sooji (rawa) and processed prawn (1% each).  However, the price of      groundnut oil and tea leaf (blended) (3% each), oil cakes, copra oil, mixed spices and maida (2% each) and gur, palm oil and tea leaf (unblended) (1% each) declined.

The index for 'Beverages, Tobacco & Tobacco Products' group declined by 0.1 percent to 221.7 (provisional) from 221.9 (provisional) for the previous month due to lower price of beer (1%).

The index for 'Textiles' group declined by 0.4 percent to 141.7 (provisional) from 142.2 (provisional) for the previous month due to lower price of jute sacking bag (5%), jute sacking cloth (4%) and cotton yarn and cotton fabric (1% each).

The index for 'Paper & Paper Products' group declined by 0.6 percent to 155.9 (provisional) from 156.8 (provisional) for the previous month due to lower price of corrugated sheet boxes (4%) and paper rolls (2%). However, the price of      kraft  paper & bags (1%) moved up.

The index for 'Leather & Leather Products' group declined by  0.2  percent to 145.5 (provisional) from 145.8 (provisional) for the previous month due to lower price of leather garments & jackets (1%).

The index for 'Rubber & Plastic Products' group rose by 0.5 percent to 148.5 (provisional) from 147.8 (provisional) for the previous month due to higher price of tyres (1%).

The index for 'Chemicals & Chemical Products' group rose by 0.1 percent to 150.7 (provisional) from 150.6 (provisional) for the previous month due to higher price of safety  matches/ match box (6%), antacid and  digestive preparations, basic inorganic chemicals and basic organic chemicals (1% each).  However, the price of tooth paste / tooth powder (3%),     hair / body oils (2%) and lacquer & varnishes, turpentine oil, non-cyclic compound, antibiotics and vitamins (1% each) declined.

The index for 'Non-Metallic Mineral Products' group rose by 0.4 percent to 180.2 (provisional) from 179.4 (provisional) for the previous month due to higher price of marbles (5%), polished granite (2%) and asbestos corrugated sheet and bricks & tiles (1% each).  However, the price of lime (1%) declined.

The index for 'Basic Metals, Alloys & Metal Products' group rose by 1.4 percent to 155.2 (provisional) from 153.0 (provisional) for the previous month due to higher price of pig iron (7%), gp/gc sheets (5%),  billets, sheets, rounds and wire rods (4% each), zinc, angles, HRC, plates and joist & beams (3% each),  sponge iron, pencil  ingots, rebars,     melting scrap and CRC (2% each) and steel structures and steel rods (1% each).  However, the price of lead (4%) and      gold & gold ornaments, metal containers, iron & steel wire and copper / copper ingots (1% each) declined.

The index for 'Machinery & Machine Tools' group declined by 0.1 percent to 135.2 (provisional) from 135.3 (provisional) for the previous month due to lower price of t.v.sets (3%) and electric switch gears, ball/roller bearing and fluorescent tubes (1% each).  However, the price of fibre optic cable (3%) and insulators (1%) moved up.

The index for 'Transport, Equipment & Parts' group rose by 0.1 percent to 139.9 (provisional) from 139.8 (provisional) for the previous month due to higher price of  railway  axle & wheel (1%).

India consumes lowest degree of chemicals (pesticides) in the world

Milk availability Per Capita with the Existing Level of 337 Gram is Likely to Go Up 500 Gram Per day by the Year 2021-22: Shri Radha Mohan Singh

India consumes lowest degree of chemicals (pesticides) in the world: Shri Singh

The Union Agriculture and Farmers Welfare Minister, Shri Radha Mohan Singh said that the hard labour extended by the people engaged in diary sector and unabated efforts of Central Government, India has achieved 4.2% average growth in milk production and has left behind the world average of 2.2%. During 2015-16 the growth in milk production in India has been 6.7%. The Minister of Agriculture and Farmers Welfare said it in the conference of stake holders related to dairy industry in National Dairy Development Board, here, today. Speaking on the occasion the Union Minister informed that owing to the enhancement in milk production the availability of milk statistics based on daily basis per capita with the existing level of 337 gram is likely to go up 500 gram daily by the year 2021-22. A sum of Rs. 2242 crore will be incurred on this scheme. Shri Singh said that it is also very much imperative to create awareness and to improve veterinary services.

Shri Radha Mohan Singh said that India ranks first in milk production in the world for last fifteen years and credit for this goes to the small milk producers. Agriculture Minister added that demand of milk and milk made products is increasing and it is likely to go up by 24 crore tonns by the year 2025.

The Minister said that it is extremely necessary to utilize scientific outputs and sophisticated technique in dairy because there is no enhancement of milk productivity in spite of the availability of best species of bovines in India.

Shri Singh said that Ministry of Agriculture and Farmers Welfare has taken a number of steps to increase the production of milk in which Gokul Mission is very much prominent. Under this mission for the year 2014-15 to 2016-17 a provision of Rs. 500 crore has been made. NDDB with the assistance of World Bank and Central Government has taken several measures under National Dairy Scheme Phase – I, a centrally sponsored scheme. It includes a genetic improvement among bovines, betterment of rural infrastructure in dairy and to provide better opportunities for milk vendors. The initiation of NDDB –I had been made in 14 states and at present it is being carried out in 18 states along with Jharkhand, Chattisgarh, Uttarakhand and Telangana.

Shri Radha Mohan Singh further added that an enhancement of more than 6% in milk production sector is necessary for a true development meant for this sector. In order to achieve this object, improved technologies, capacity building, marketing, scientific livestock management, knowhow related to milk production and better arrangement of loans is necessary so as to operate a dairy systematically and in a balanced way. Agriculture Minister opined that the youth and females are enjoying handsome employment opportunities in dairy sector. Shri Singh also said that by the year 2022 the income of the farmers is to be made as double and to achieve this target the dairy sector is to play a very important role.

Thereafter, the Union Minister of Agriculture and Farmers Welfare participated in the programme organized by the Society of Pesticides Science India at National Agricultural Science Complex, Pusa, New Delhi. Speaking on this occasion, Shri Singh added that various disorders prevalent on crops and pests have cast a very serious adverse impact on food grains production. Owing to these pests and maladies the crop production on global level is reducing by 15 to 25% every year. It is estimated that on various stages of agricultural production and their storage 35% chunk of total crop production is damaged due to pests, diseases, weeds, rats, birds as well as nematodes etc. India ranks on 10th place in the world with regard to the consumption of pesticides. This is the country that consumes lowest degree of chemicals (pesticides). Earlier the use of pesticides rate was 2 to 5 kg per hectare which has been reduced from 100 to 200 grams per hectare. For a few last years on account of the remains of pesticides in the crops, an adverse impact has affected the export of agricultural products. Therefore, it is also very necessary to have this scenario monitored. 

effect of demonetization

While the government’s demonetisation drive will likely negatively impact the economy in the short term, it could help over the longer term propel economic growth into double-digit levels as more of the informal economy becomes formal and the Goods and Services Tax comes into effect, according to economists.

Another benefit from the drastic currency step could be a reduction of banks’ non-performing assets, a critical constraint that is holding up the flow of bank credit for private sector investment in the country.

“To the extent that there is shrinkage of money supply, conventional economics says that that should be deflationary,” said Ajit Ranade, Chief Economist of the Aditya Birla Group.

“It will lead to a contraction of output as well in the short run, so there will be an impact on GDP.”

“However, in the long run, say within two years, this move combined with the Goods & Services Tax legislation will help in a pick-up, and take the country's growth to double-digit levels,” said Girish Vanvari, Partner and Head, Tax, KPMG in India.

“The NPAs of banks will go down as the cash coming in will lead to higher CASA (current account, savings account), in turn declogging the system. Foreign investors have welcomed this as a bold move, and in the right direction.”

“More savings will enter the formal financial economy,” Mr. Ranade added. “India has a fairly high savings rate, but the financial part of that is low, so that is likely to go up. Then the exponential increase in all the cashless mechanisms like cashless wallets and online banking may also help in the formal part of the economy.”

Looking a little deeper at the sectoral impact, the view is that the demonetisation move will hurt growth in cash-heavy sectors like real estate, gold and jewellery.

“Interest rates will come down because the money will go to the banks and to some extent some of it will go to the government as taxes,” Indranil Sengupta, India Chief Economist at Bank of America Merrill Lynch, said. “Also, there is going to be a short-run demand shock. But a lower interest rate will cushion this to some extent. Once the RBI’s currency liability shrinks, we think they will have lower open market operations.”

Kotak Institutional Equities was of the view that the consumption of high-value items like jewellery or real estate will get impacted as these have been popular with those having unaccounted income or wealth.

“We believe small businessmen and self-employed professionals would make attempts to become a part of the formal economy over time by reporting higher income and paying full income and indirect taxes,” Kotak Equities wrote in a report.

Rate cuts

“We believe that additional measures like monetary stimulus in the form of rate cuts and liquidity infusion in the formal system will aid the economy in handling this situation in an appropriate manner,” according to Nimesh Shah, MD and CEO, ICICI Prudential Mutual Fund.

“As consumption will be hurt, there will be pressure on the repaying capacity of producers/sellers,” Motilal Oswal Financial Services wrote in a note to clients.

According to Anand Rathi Securities, demonetisation will be a logistical nightmare in the short term leading to a slowdown in consumer spending and likely decline in GDP over the next two quarters. However, the subsequent two years would see the gross domestic product register a sharp “hockey stick” revival, the securities firm wrote in a note.

The overall economic impact would include a likely appreciation of the rupee, a sharp slowing in inflation, the banking system getting a boost and real estate prices falling about 20-25 per cent before stabilising, according to the domestic brokerage. Stocks would benefit the most due to the gradual shift from physical assets to financial assets, it added.

A boost to farmers income

A boost to farmers income

Cabinet approves enhanced MSP for Rabi Crops of 2016-17 season
Announces Bonus for Gram, Masur, Rapseed/Mustard and Safflower cultivation

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for the increase in the Minimum Support Prices (MSPs) for all Rabi Crops of 2016-17 Season. Further, to incentivise cultivation of pulses and oilseeds, in the country Government has announced a bonus on these crops, payable over and above the following approved MSP.

Commodity	MSP for 2015-16 Season (Rs / Quintal)	MSP approved for 2016-17 (Rs / Quintal)	Increase
			Absolute (Rs / Quintal)	percentage
Wheat	1525	1625	100	6.6
Barley	1225	1325	100	8.2
Gram	3500 (includes bonus of Rs.75 per quintal)	4000 (includes bonus of Rs.200 per quintal)	500	14.3
Masur (Lentil)	3400 (includes bonus of Rs.75 per quintal)	3950 (includes bonus of Rs.150 per quintal)	550	16.2
Rapeseed / Mustard	3350	3700 (includes bonus of Rs.100 per quintal)	350	10.4
Safflower	3300	3700 (includes bonus of Rs.100 per quintal)	400	12.1

The approval to increase MSPs is based on the recommendations of Commission for Agricultural Costs and Prices (CACP) which while recommending MSPs takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of production resources like land and water.

The recommendation of CACP being the expert body, are generally accepted as such.  However, to incentivise cultivation of pulses and oilseeds, the Cabinet has decided to give a bonus of Rs.200/- per quintal for Gram, a bonus of Rs 150/- per quintal for Masur/Lentil and a bonus of Rs 100/- per quintal each for Rabi oilseeds viz. Rapeseeds/Mustards and Safflower, over and above the recommendations of the CACP. There is an increasing gap between the domestic demand and supply of pulses and oilseeds as a result of which reliance on import is increasing. Government has, therefore, announced this bonus on pulses and oilseeds to give a strong price signal to farmers to increase acreage and invest for increase in productivity of these crops. The increase in cultivation of leguminous pulses and oilseeds will also have additional environmental benefits as these crops are less water consuming and help in nitrogen fixation in the soil.

Food Corporation of India (FCI) will be the designated central nodal agency for price support operations for cereals, pulses and oilseeds. To supplement the efforts of FCI, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Cooperative Consumers' Federation (NCCF), Central Warehousing Corporation (CWC) and Small Farmers Agri - Business Consortium (SFAC) may also undertake procurement of oilseeds and pulses as per their capacity.

Background:

Besides increase in Minimum Support Prices (MSP) of Rabi crops, Government has taken several farmer friendly initiatives. These, inter-alia, include the following:

·         The Government had declared a bonus, over and above the MSP, of Rs 75 per quintal for Rabi pulses of 2016-17 marketing season, a bonus of Rs. 425 per quintal for Kharif pulses viz. Arhar, Moong and Urad, a bonus of  Rs 200 per quintal for Sesamum and a bonus of Rs. 100 per quintal for Groundnut, Sunflower, Soyabean and Nigerseed.

·         A new crop insurance scheme 'Pradhan Mantri Fasal Bima Yojana' has been launched by the Government. Under this scheme, the premium rates to be paid by farmers; are very low- 2% of sum insured for all Kharif crops, 1.5% for all Rabi crops' and 5% for commercial and horticulture crops. The new insurance scheme involves use of simple and smart technology through phones & remote sensing for quick estimation and early settlement of claims. The Government has also launched a Mobile App "Crop Insurance" which will help farmers to find out complete details about insurance cover available in their area and to calculate the insurance premium for notified crops.

·         The Government has also launched a scheme to develop a pan India electronic trading platform under 'National Agriculture Market' (NAM) aiming to integrate 585 regulated markets with the common e-market platform. Each State is being encouraged to undertake three major reforms - allow electronic trading, have a single license valid throughout the State and a single entry point market fee. It will also enable farmers to discover better prices for their produce. 221 markets in 11 States| have already been brought on the e-NAM platform.

·         Soil Health Cards are being issued to farmers across the country. These will be renewed every two years. The card provides information on fertility status of soil and a soil test based advisory on use of fertilizers. As on 30th September, 2016, 295.56 lakh Soil Health Cards have been distributed.

·         Under Pramparagat Krishi Vikas Yojna (PKVY), the Government is promoting organic farming and development of potential market for organic products.

·         The Pradhan Mantri Krishi Sinchai Yojana is being implemented with the vision of extending the coverage of irrigation 'Har Khet ko Pani' and improving water use efficiency 'Per Drop More Crop ' in a focused manner with end to end solution on source creation, distribution, management, field application and extension activities.

·         Government is focusing on improving production and productivity of crops such as rice, wheat, coarse grains and pulses under the National Food Security Mission.

·         A dedicated Kisan Channel has been started by the Doordarshan to provide 24 x 7 information in the hands of farmers regarding weather updates, agri-mandi data etc.

·         Government is encouraging formation of Farmer Producer Organisations.

·         To stabilize prices of pulses and onions, Government has decided to create buffer stocks of pulses and has imported pulses and onions under the Price Stabilization Fund.

·         A handbook for women farmers 'Farm Women Friendly Hand Book' containing special provisions and package of assistance which women farmers can claim under various on-going Missions/ Submissions/ Schemes of Department of Agriculture] Cooperation & Farmers Welfare has been brought out. Women farmers/beneficiaries could approach the nearest Project Director (ATMA) / Deputy Director (Agriculture) office at District or Block Technology Manager/Assistant Technology Managers at Block level for instant help and facilitation for availing the benefits.

·         With the above measures taken, the Government has set a target to double the farmers' income by 2022.

Improving India’s job creation ranking

Improving India’s job creation ranking
Structural reforms in factor markets are key for this labour-surplus economy to offer productive employment
This is the season of rankings. In the past few months, several reputed international organizations have assessed, compared and ranked the performance of countries on different indicators on issues like competitiveness, ease of doing business, hunger, youth development, gender gap, press freedom and consumer confidence. Alas, there is none specifically on job creation.

India has exceeded expectations on some, and has performed not so well on others. For instance, the World Economic Forum (WEF) ranked India at the 39th position on the Global Competitiveness Index, an impressive jump of 16 places in a year. Despite such a jump, WEF cautions that India’s performance is low by global standards, and huge challenges lie ahead on the path to prosperity. This is reflected in the high average tariff that India is maintaining on its imports, low level of factor accumulation, and relatively high incremental capital-output ratio.

Among other factors, this is also due to a less than optimal domestic regulatory environment and near absence of regulatory harmonization. This is one of the reasons why India moved up by only one notch on the World Bank’s recent ease of doing business ranking. However, the bank has recognized the government’s efforts towards a better business growth environment.

Also, India’s performance on social, education and health-related indices has been abysmal. The WEF report on global gender gap reveals that on the indicator of women’s health, India is third last. Similarly, on the global hunger index, India lies among the bottom group of countries, even below neighbours like Nepal, Myanmar and Bangladesh.

Let us now view India’s performance on different indicators in the context of one of the most critical challenges it is facing: job creation. The number of jobs created in 2015 is much less than what it was a few years ago. As mechanization of agriculture and manufacturing is moving at a faster pace and the services sector is becoming more skill-oriented, fewer jobs are being created which can match the existing skill level of the vast majority.

Consequently, it is not difficult to surmise that while India’s gross domestic product (GDP) is growing, such growth is increasingly becoming exclusionary. Enough jobs are not being created for the poor, for whom affording one square meal a day is becoming challenging. Much of India’s growth is emanating from services, and taking place in sectors which require middle- to high-level skills.

India’s poor have traditionally been dependent on agriculture and manufacturing, which have ceased to offer large-scale employment opportunities. Lack of quality and affordable healthcare and education robs the poor of opportunity to compete with their well-off counterparts in the job market. As a result, the poor get stuck in unproductive agricultural activities and are under-employed in the informal sector.

All these challenges have resulted in India remaining a low middle-income country over the last couple of decades. In order to improve its status to first become a high middle-income and then a high-income country, it has to overcome the challenges of the middle-income trap.

The two most important components on which the Indian economy should focus to create jobs over the next few years are productive agriculture and mass manufacturing. The latter will help India get embedded into global production networks and the former will provide a continuous push towards the growth of domestic aggregate demand accompanied by socio-political stability.

This can be done through an emphasis on micro, small and medium enterprises, by reforming factor markets such as land, labour, capital, and attracting investment in those labour-intensive sectors which are expected to be vacated by East and South-East Asian countries as they move up the production value chain.

For a labour-surplus economy like India to become more competitive and offer productive employment to its population, the key is structural reforms in its factor markets, rather than short-term cyclical reforms. As a flanking measure, we need continuous regulatory harmonization.

Moreover, given the sluggishness in international trade negotiations, time is on India’s side for undertaking such reforms. This will not only make the Indian economy more competitive and create productive employment opportunities, but there will also be opportunities for India to become a major actor on the global economic proscenium.

For this, a dynamic factor- and sector-specific reform agenda illustrating the kind of reforms needed to reduce the cost of factors of production (land, labour, capital, logistics, etc.) and harmonize regulations to make India more competitive in specific sectors for creation of large-scale manufacturing jobs is needed. Clear demarcation between the agenda items which are to be pursued by the Centre and states, through executive orders and those which will require legislative changes, is crucial.

The agenda must include a phased implementation strategy setting out short-, medium- and long-term targets. Continuous stakeholder engagement and awareness generation on benefits will enable seamless implementation. This will go a long way in improving India’s rank on job creation.

measures to curb air pollution in Delhi must necessarily tackle the city’s solid-waste crisis as well

A large accumulation of small defeats
The measures to curb air pollution in Delhi must necessarily tackle the city’s solid-waste crisis as well
The toxic haze that enveloped Delhi for two weeks after Diwali has diminished. But it would be foolhardy to think the moment has passed. How do we go on from here, knowing that next year, too, farmers will burn crop stubble, people will burn garbage and burst Diwali firecrackers, diesel generators will remain in use, environmentally harmful industry practices will prevail and private vehicles will still be the preferred means of transport?

The causes of October’s smog highlight the intersectional nature of pollution in cities—how one mode of pollution interacts with and worsens another, which is why it is difficult to come up with a quick fix to bad air. The measures to curb air pollution in Delhi must necessarily tackle the city’s solid-waste crisis as well.

India produces about 62 million tonnes of solid waste annually, of which 75-80% is collected, and only 22-28% is treated. The rest lands up in open dumpyards and landfills or is burnt. According to a 2016 study by the Indian Institute of Technology, Kanpur, on Delhi’s air quality, the burning of municipal solid waste accounts for 7-8% of particulate matter pollution. Landfills, on the other hand, release noxious methane fumes into the air and leachates into the groundwater, presenting a permanent challenge to tackling pollution in cities. Yet landfills continue to be overlooked by flagship policies. The Swachh Bharat (Urban) scheme focuses on water, sanitation and hygiene, with scant attention being paid to the solid waste coagulating unchecked in landfills. The National Urban Sanitation Policy 2008 was concerned with access to sanitation facilities for the urban poor, but landfills remained outside that conversation. Landfills were limited to the ambit of the erstwhile Municipal Solid Wastes (Management and Handling Rules), 2000.

Every big city usually has at least one landfill. Delhi has four. Mumbai has three. Chennai and Kolkata have two each. Bengaluru had two before they were shut down after community protests. There is something very sobering about the vastness of a landfill, the spectre of city after city struggling with the problem. But the bigger issue is that landfills continue to be the solution, both for untreated municipal solid waste and for the scores of workers in the informal economy seeking to make a living in cities.

It is easier to not see both solid waste and the informal worker, because we still haven’t arrived at a development narrative that will accommodate both. Solid waste is the by-product of a consumption economy. The informal worker exists outside the regulated, legal, organized economy. Both exist on the outer fringes of a city’s growth story. Both converge on the landfill.

The economic potential of municipal waste in Indian cities is fettered by inadequate segregation of waste, thereby rendering it unfit for conversion into refuse-derived fuel. Waste-to-energy incinerator plants are still an inefficient response to solid-waste management because municipal waste is marked by high moisture content (up to 65%) and low calorific value (520-3,766kcal/kg), which means that things don’t burn well enough to generate the energy that would justify the plant.

A worker in the informal economy poses a tougher challenge. Urban areas account for 28% of employment and 55% of the output, according to a 2014 study by the Indian Institute for Human Settlements, Bengaluru. It found that employment generation in cities has taken place largely in the informal sector, where the quality of work is poor, with low wages and little social protection. The National Commission for Enterprises in the Unorganized Sector, 2009, describes a class of “socially discriminated, educationally deprived, and economic destitutes”, for whom the growth process has yielded “very little expansion of their employment and enhancement in their earning capacity”. Since waste workers tend to hail from the most marginalized castes in India, caste, gender and age intersect in such a way that the burden of making a living from landfills falls disproportionately on women and children.

On the bright side, the recently notified Solid Waste Management Rules, 2016, emphasize segregation of waste at source and greater decentralized processing of biodegradable waste. They also mandate the integration of kabadiwallahs and ragpickers into the formal economy. This is vitally important since most of the waste-sorting and recycling is done by informal workers before the unrecyclable waste is transported to a landfill. They bear the brunt of our failure to segregate our household waste; they do so under hazardous conditions and for negligible pay.

A landfill is a fracture in the stories we tell about our cities. The home page of the urban development ministry website carries a permanent declaration—“The growth story of India shall be written on the canvas of planned urban development.” Almost as an afterthought, there is a second declaration, “And shall be scripted through the instrument of planned mobility.”

What stories come out of landfills? They are reports of the landfill fires that continually smoulder, the deaths of ragpickers, the tonnage of waste being dumped, the dreary profiles of municipal waste. They remain narrative versions of things that you don’t look at directly or for too long. The presence and persistence of landfills ought not to be taken lightly when contending with air pollution.

We need to move towards environmentally sound policymaking, and away from the formulaic inter-governmental squabble that seems to pass for crisis management. Without this, a city, as Jeet Thayil describes in Narcopolis, isn’t much more than “a large accumulation of small defeats”.

Text of PM's statement to media in the joint media briefing with President of Israel (November 15, 2016)

Text of PM's statement to media in the joint media briefing with President of Israel (November 15, 2016)

Your Excellency President Reuven Rivlin
And Friends from the Media,

I am honoured to welcome President Reuven Rivlin, and distinguished members of his delegation to India. President Rivlin is on his first ever visit to India. We are delighted to receive him on this special occasion. Excellency, your visit will provide crucial push to our efforts to build new pillars in our partnership. It will also carry forward the momentum generated by the first ever visit of President of India to Israel last year. Next year, both countries will be celebrating 25 years of the establishment of full diplomatic relations. As we approach this big milestone, we are both committed to advance our engagement on several fronts. And, build on convergences and commonalities in our interests and concerns on regional and global issues.

Friends,

Our engagement is multi-dimensional and wide-ranging.We are partnering in:

• enhancing agricultural productivity and efficiency;
• boosting research and innovation linkages;
• employing applications of science and technology for the benefit of our societies;
• Forging strong trade links and investment ties;
• Building defence ties to secure our people; and
• Enhancing people to people ties through greater cultural and tourism linkages.
• Promoting educational exchanges. The growing number of Indian students, going to study in Israel and vice versa can be an important bridge in our bilateral partnership.

Friends,

Earlier today, in our discussions. President Rivlin and I agreed that there are several strong areas of ongoing cooperation between our countries. We are familiar with Israel’s advances in agriculture, and its expertise in micro-irrigation in drought-prone areas and water management. We have identified water management and conservation, and collaboration in scientific research and development as two areas of priority engagement. We both agreed that the current trajectory of the Indian economy opens up many promising opportunities for Israeli companies. Our economic initiatives and programmes, and emphasis on innovation, research and technological development match well with Israel’s strengths and capacities. Israeli companies can scale up their tie-ups with our flagship schemes of Make in India, Digital India, Skill India, and Smart Cities. I would encourage the private sector stakeholders on both sides to take lead in utilizing this perfect opportunity to build business ties of commerce and investment between our two countries in these areas. Indian and Israeli companies can also work together in high-technology manufacturing, and services sectors. Make in India and as President Rivlin told me in our discussion, Make with India can generate jobs and benefit both geographies. Our partnership can generate jobs and benefit both geographies. IT services is an area where our partnership can make a difference for both our economies.

Friends,

President Rivlin and I deeply value our strong and growing partnership to secure our societies. Our people are constantly threatened by forces of terrorism and extremism. We recognize that terrorism is a global challenge, knows no boundaries and has extensive links with other forms of organized crime. Regrettably, one of the countries of its origin and spread is in India’s neighbourhood. We agreed that the international community must act with resolve and determination against terror networks and States that harbour them. Failure to act and silence of speech only encourages the terrorists. We,agreed to intensify our cooperation to combat the forces of extremism and radicalization that threaten all peace-loving nations. We also prioritized practical and specific engagement such as in the cyber domain. We noted the strength of our growing defence partnership. And, agreed on the need to make it more broad-based through production and manufacturing partnerships. India is also grateful to Israel for its clear support to India’s permanent candidature in a reformed UN Security Council.

Friends,

As fellow democracies, our people are our biggest strength and the biggest beneficiaries of a strong India-Israel partnership. The 2000-year old Jewish community in India represents a thriving link to this past. Today, it is a vital part of our composite cultural mosaic that continues to thrive in their traditions. We are proud of the Jewish community in India. President and I agreed that promoting people-to-people contacts, which has a long shared history, is our shared priority.

Excellency,

Two and a half decades of our friendship has brought rich dividends for both our nations. It has also strengthened voices of peace, stability and democracy globally. Your visit provides an opportunity to break new ground and shape new contours of our partnership. With these words, I once again welcome President Rivlin on his first State visit to India, and wish him a productive and enjoyable stay in India.