Open Forum

New Delhi, 22 November 2023

Raising Work Productivity

MORE HOURS NOT AN ANSWER 

By Dhurjati Mukherjee 

Increasing workers’ productivity is an issue which has come into sharp focus following a recent podcast of legendary co-founder of tech giant Infosys NR Narayana Murthy, wherein he requested youngsters to work for ‘70 hours a week’. India’s work productivity, he said “is one of the lowest in the world. Unless we improve our work productivity... we will not be able to compete with those countries that have made tremendous progress.” So, he added the “youngsters must say ‘This is my country. I’d like to work 70 hours a week”. 

Undeniably, labour productivity in India is quite low compared to many countries, even in the emerging economies. Thus, there is need to raise productivity, as efficiency increase is the order of the day, and must be ensured to make India competitive in the global market. 

However, the question arises whether this would be possible through more efficiency, which could be brought about by use of technology and/or better planning etc. or through extending a longer work week. The latter option is not evident in most other countries and therefore may not be acceptable. Moreover, working more hours per week does not necessarily improve work culture and standards. 

While urging the need for increasing productivity, the prevailing situation in the country, not just in the modern industrial sector but also in the traditional industrial sector in both big and medium industries needs to be considered. A section of analysts has been harping more on the induction of technology than in longer working hours. However, it may be mentioned here that in the unregulated informal sector, the working hours are around 70 hours a week. 

Some feel that Murthy’s thesis is not quite correct as productivity is not necessarily linked to how many hours people work. Indians already work longer hours than most. The Indian government’s time-use survey in 2019 found that men between the ages of 15 and 59 in urban India spent an average of 521 minutes a day in paid employment. That translates to over 60 hours a week. The number is even higher if you exclude those with only primary education. Indians, according to an ILO report, already work long hours ‘worked an average of more than 2,000 hours every year before the pandemic, much higher than the US, Brazil and Germany.’ 

Murthy pinpointed India’s underwhelming work productivity, ranking among the lowest in the world, which is possibly not the fact. The case of China, which is well known for high levels of efficiency and skill, needs to be studied. The China Labour-Force Dynamics Survey in 2017 revealed that the average employee in the People’s Republic spent just under 45 hours at work, though more than 40 percent reported that they were working over 50 hours a week. 

There are, however, some sectors in that country where the working hours are around 60-62 hours a week. But China’s progress and prosperity has been not because of long hours of work but due to high technological prowess. During the pandemic, work was being done from home but at least one survey found that Indians – may be also the Chinese -- had to put in more unpaid overtime. 

Murthy’s comparison with Germany also does not appear convincing. Though Germany’s workers in the 1950s certainly worked longer hours than, say, the British, the total was still probably between 45 and 50 hours a week though presently it’s not more than 50 hours a week. However, presently South Koreans have longer working hours, which may be around 60 hours a week. 

These comparisons are aimed at highlighting the fact that working longer hours need not necessarily boost productivity. Though Murthy has not referred to the government sector, where it is generally believed that productivity is low, the main reason that can be attributed for this is the lack of proper advance planning. But even then, one can say that even without corporate level efficiency, government hospitals have the best doctors and best treatment is received in these places. Obviously, this is because of high levels of skill and efficiency. 

Recall that more than a decade ago, Ratan Tata had complained to The Times, London that the management of the British steel company (Corus) and automaker (Jaguar Land Rover) he had taken over didn’t work hard enough. They wouldn’t stay for meetings that lasted past 5 p.m.; offices emptied early on Friday. Tata Steel’s hard-edged management, he implied, would soon set that right. India Inc.’s luminaries lined up to drape themselves in the flag and endorse their fellow billionaire. 

The five-day week culture may not be ideal for a developing nation like India, but factories operate for six days a week and most private sector companies also follow the same principle. It is necessary to mention here that if corporate India wants workers to work longer hours, it will need to create high productivity jobs for them. It is here that there is need to understand the nature of employment of India’s workforce and whether such jobs can be created for them. 

With more than 45 percent of India’s workers engaged in agriculture and another 40 percent in enterprises employing nine or fewer workers, high productivity jobs are scarce in the country. The reason is quite obvious -- we are yet to establish an efficient and technologically developed structure. The huge labour force does not find adequate employment and even those who find employment are without jobs for around six months a year. Whether it be agriculture or agro-based industries or even the informal sector, modernisation has not taken place yet. 

With little capital and land to work on, the marginal product of labour is too small to convince workers to work harder. Moreover, the situation is such that harder work does not reach the employee in most cases but are taken away by the employer in connivance with corrupt political leaders. All the talk of increasing working hours is limited to the top corporate sectors which have unfortunately got all the attention of the government and the country. In fact, all the capital has been invested in these few sectors, which employs around 8-9 percent of the total workforce.  

It is now necessary that a change be brought about in the informal sector of the country where pay structure, working hours, overtime allowance is fixed, and workers are not allowed to be exploited. Entrepreneurs like Murthy can talk about more working hours and can examine the labour put in by those who work in the informal sector and devise ways and means and then advise the government to conduct a comprehensive study towards reforming this sector and improving the working conditions of the workers.---INFA 

(Copyright, India News & Feature Alliance)

Political Diary

New Delhi, 21 November 2023

Uniform Civil Code Anyone?

TIPTOEING  STEALTHILY

By Poonam I Kaushish 

In this poll season of freebies galore interspersed with vitriolic hate speeches and venomous tu-tu-mein-mein by BJP and Congress on the assumption that populist hand-outs yield better electoral rewards than reasoned policies, notwithstanding Prime Minister Modi crying halt to free “revadi” culture, the BJP Uttarakand Government in a groundbreaking move is quietly set to roll out the Uniform Civil Code (UCC) a long-debated legal reform genie in a special Assembly session this week granting it legal status. 

The Bill aims at uniformity in personal laws, like marriage registration, child custody, divorce, adoption, property rights and inter-State property rights regardless of religious beliefs. Reportedly it gives importance to safeguarding interests of women, children and differently-abled and covers equal rights for daughters living on ancestral properties and gender equality. The State also seeks a ban on polygamy and registration of live-in relationships.. 

Pertinently, the Code is BJP’s key agenda and Article 44 states: The State shall endeavour to secure for citizens a UCC throughout India. It divests religion from social relations and personal laws related to marriage, inheritance, family, land etc, bypasses contentious issue of reform of existing personal laws based on religion --- Hindu Marriage Act (1955), Hindu Succession Act (1956) and Muslim Personal Law Application Act (1937). It would ensure all Indians are treated equally, provide gender equality and help improve women’s condition and tribal communities. 

Modi hoots for it. Asserting recently, “You tell me, if there is one law for one person in a home, and another law for another person, can that house function?” No. “So how can a country work with such a hypocritical system? We have to remember that even the Constitution of India talks of common rights.” 

Questionably, why now? There are four theories going around in BJP circles. One, it is part of a larger plan for the Saffron Brigade as UCC’s implementation could represent a political breakthrough that advances a narrative of uniformity and reform in law. 

Two, Uttarakhand’s UCC is to test political waters on how it will be received and could be the template that Central Government will follow for a pan-India code. The Law Commission has begun consultation on it, given Opposition vehement disagreement on grounds UCC would interfere in religious groups personal laws and right of religious freedom unless religious groups are prepared for change (sic). It is a ‘minority versus majority’ issue and Hindutva Brigade’s policy for Muslims living in India. It would disintegrate the country and hurt its diverse culture, they warn.   

Three, in case the Party wins crucial States of Rajasthan, Madhya Pradesh and Chhattisgarh it will roll out UCC in Parliament before general elections 2024, thereby fulfilling it last key agenda, part of its 2019 Lok Sabha election manifesto alongside Ram temple in Ayodhya and abrogation of Article 370 in J&K which have been fulfilled. 

Lastly, in the event it loses these crucial States the BJP might still bring UCC to distract attention from its defeat. “In fact, it plans to use the Uttarakhand as a model when developing its UCC Bill that it will eventually introduce”, said a Party leader. As it stands, two other BJP-ruled States Gujarat and Assam too might roll the Code out soon. While, Haryana, UP and Maharashtra wait in queue. 

However, this is easier said than done due to the country's diversity and religious laws, which not only differ sect-wise, but also by community, caste and region. Already, the All India Muslim Personal Law Board has expressed reservations, stating India has a multi-cultural and multi-religious society and each group has the Constitutional right to maintain its identity. Adding, the UCC is a threat to India’s diversity and encroachment on their rights to religious freedom which will disregard their traditions, imposing rules influenced by the majority religious community. 

Besides, not a few argue it violates Constitutional freedom to practice religion of choice which allows communities to follow their respective personal laws. For example, Article 25 gives every religious group the right to manage its own affairs and Article 29 the right to conserve their distinct culture. Also, the Constituent Assembly’s Fundamental Rights sub-committee deliberately did not include UCC as a Fundamental Right. 

Some are wary UCC will impose a Hinduised code for all communities as it could include provisions regarding personal issues like marriage that are in line with Hindu customs but will legally force other communities to follow the same. 

Legal experts are divided on whether a State has the power to bring about UCC. Some assert as issues like marriage, divorce, inheritance and property rights come under the Concurrent List, 52 subjects on which laws can be made by both Centre and States, State Governments have the power to impose it. 

A similar concern is voiced by tribal groups like Rashtriya Adivasi Ekta Parishad, which approached Supreme Court 2016 seeking protection of their customs and religious practices from a potential UCC. In Nagaland’s tribal territories existing customary laws have primacy over federal laws with respect to personal issues like marriage, land ownership, etc. 

Goa is the only State which has a UCC regardless of religion, gender, caste. It has a common family law whereby all Hindus, Muslims and Christians are bound with the same law related to marriage, divorce, succession. When Goa became a Union Territory in 1961, Parliament authorized the Portuguese civil code of 1867 be amended and repealed by the competent legislature. 

Certainly the path to UCC is sensitive and difficult but it must be taken. A beginning has to be made if the Constitution is to have any meaning. Discrimination cannot be justified on the grounds of traditions and customs. To establish equality the law that regulates population of a country should also be one. 

Where do we go from here? Time for consensus among people which addresses their misgivings and concerns before the Code can be enacted. Said a senior Minister, “There is need to tackle “delusions” that some have “encouraged” that UCC is against rituals and core practices of any religion. It is a scientific and modern way of achieving goals of gender justice by removing disparate loyalties in laws which have conflicting ideologies.” 

A common civil code will help the cause of national integration by removing desperate loyalties to laws, which have conflicting ideologies. A way forward is to follow Balasaheb Ambedkar who advocated “optional” common civil code. Whereby, Parliament in the initial stage makes a provision of the Code being purely voluntary. 

What next? Ultimately, no community should be allowed to veto or block progressive legislation. Especially, if it is voluntary and does not seek to impose any view or way of life on any one arbitrarily. Time now to reject different laws for different communities, implement Article 44 and reform India. 

One cannot progress riding on past’s wheels. India needs uniform laws and should figure what is   satisfactory to all groups. Criminal and commercial laws are basic, so there is little purpose behind common laws to appear as something else. It just partitions Indians on the premise of religion that should not happen in the 21st century. It is beyond endurance of sensitive minds to allow injustice to be suffered when it is so palpable. What gives? ---- INFA

(Copyright, India News & Feature Alliance)

Economic Highlights

New Delhi, 20 November 2023

Record Diwali Sales

EXPORTS TO GERMANY RISE

By Shivaji Sarkar 

India’s imports are growing, exports are slowing but domestic sales during Deepavali touched a record Rs 3.75 trillion, according to the Confederation of Association of Traders (CAIT). Besides, with some more regional festivities such as chhathpuja it may add another Rs 50000 crore sales. The All-India Jewellers and Goldsmiths Federation National says that on Dhanteras, about 41 tonnes of gold and about 400 tonnes of silver jewellery and coins were sold in the country. In value terms, the total turnover of gold, silver and other items was Rs 30,000 crore. 

Even passenger vehicle sales have gone up by about 21 percent on the back of deregistration of fine working personal cars though these don’t add to pollution. Maruti alone is stated to have sold over 55,000 vehicles. So did the tractors, suggesting a new-look agriculture.This is despite the rising food prices, posing threat to the Reserve Bank of India’s (RBI) commitment to align headline inflation with the 4 percent target as state in its‘State of the Economy’ report. 

Rising food prices pose the sole threat to the RBI’s commitment to align headline inflation with the 4 per cent target, according to the central bank’s report. One particular aspectwhich is troublesome is the vegetable inflation averaging 5.7 percent from fiscal year 2020 till now (2023) compared to a virtual zero between 2016 to 2019. Occasional rises have been much higher. 

While this phenomenon along with some external developments are pushing the rupee down vis a vis the dollar, it has added to another problem of shrinking goods exports for the seventh time in August while imports surged to hit the highest level since March this year. At $58.6 billion imports were 5.2 percent below last year’s level but exports fell higher by 6.9 percent leading to $24.2 billion trade deficit, the widest since October 2022. In September, imports at $68.75 billion, less than $79.64 billion a year back and were again higher than exports at $ 63.84 billion against $64.61 billion the previous year. 

But India may be doing better in individual country terms. A German government report says, a rapidly growing India became more important for Germany. Goods to the value of 8.7 billion euros, 1.7 percent higher were imported from India to Germany from January to July 2023. Accounting for 1.1 percent of total imports, India ranked 23^rd among Germany’s major suppliers of goods. Among the non-EU countries, India ranked ninth. 

Goods exports are down 11.9 percent and imports dipped by 12.1 percent. In short, it affects foreign currency earning, which remains at a level of Rs 83 or below. This makes imports more expensive and that pushes up the inflation RBI struggles to keep in check. 

Services exports and imports too were hit. In September, services exports witnessed a year-on-year decline of 2.7 percent at $ 28.42 billion, Simultaneously, services imports decreased by a sharper 10.3 percent at $ 14.59 billion. This is an indication of the economy at the domestic front. It means the overall activities in the economic sector is coming down. Shrinking services exports imply that their ability to bridge the goods trade deficits that were significant last year, will be restricted. This could lead to wider current account deficits. 

It can impinge on the budgetary process that begins at this point of time. This will be significant for an election year provisional central budget. The 2023-24 budget allocated, like the previous year, higher infrastructure expenditure hoping faster growth. It will be challenging for the economy. Not all expenses may be justified like demolitions of many office buildings, which could have stood the test of time. World over traditionally such buildings are refurbished and maintained instead of demolitions. Iconic structures like the National Museum are also being axed. These add antiquity value to historic cities.

 It appears that the domestic purchasers would be greasing the economy instead of external sales. This year’s domestic figure at Rs 3.75 trillion is far higher that the retail business of Deepavali 2022 at Rs 1.5 trillion. Gold sales spiked by 20 percent almost like the last year.

The peculiar factors of the economy need to be decoded. Festivity sales are rising every year despite the rise in inflation and moderate job scenario. This year overall many farmers dealing in potato and other vegetables had less income even as onion, tomatoes, cereals, and pulses prices surged. The RBI is watching keenly the November and December market trends. 

Despite inflationary situation the rise of sales of goods and commodities suggest that even the not so affluent keep the wheels of economy moving. Festive sales are seasonal but whether such trends would sustain the economy or not is yet to be proven. This definitely gives a boost to the entire economic sector, including travel, transport and hotels. Large movements generate enormous opportunities. 

An increase in inflation rate leads to a decrease in the household consumption as per the traditional theory. How the festive sales surge remains to be unfolded. The credit card sales have also gone up 17 percent in October and a bit more in November. Overall estimates show credit card sales of Rs 29,000 crore. There is a catch. It may be part of the total purchases by the consumers. But the sales surge also has another blue. It has been observed that credit card defaults too increased. 

It has been observed that from around 70 percent as a share of GDP, the share of private consumption expenditure (PFCE) has gone down to 58.5 percent. Aniket Dani, director, research, CRISIL Market Intelligence says the self-employed witnessed degrowth of 3 percent in their income during the last one year. Inflation during this period remained at 6 percent, suggesting loss in income. The low-income group bore the brunt. 

The growth in sales may not encompass all sections. At the macro level slowdown is evident. Chief Economist, Motiwal Oswal Financial Services Nikhil Gupta says that when saving continue to fall, income growth lags consumption growth. So, all that glitters may not be gold. Diwali sales may have boosted a large part of the market but its general impact on the economy is yet to be observed.---INFA 

(Copyright, India News & Feature Alliance)

Round The States

New Delhi, 18 November 2023 

TN Governor-Govt Rift

BILLS RETURNED, GETS WORSE

By Insaf 

Governor-government tussle in Tamil Nadu’s is getting worse. On Thursday last, Governor RN Ravi returned 10 pending bills to the ruling DMK government. Within hours, a special session of the Assembly has been called on Saturday (today) and according to Speaker M Appavu these Bills, including the power of the state government to appoint university VCs, one on anti-corruption measures and early release of prisoners would be taken up. Apparently, the Raj Bhavan has chosen to ignore the Supreme Court’s ‘serious concern’ a few days ago about Governors not acting on Bills. Or would it argue, it hasn’t sat on these and acted promptly by returning them? Whatever inferences are made, the big question is Ravi’s action triggersa constitutionaldilemma. Once the Assembly passes these Bills again, Ravi will be bound to approve them, says Appavu. However, recently at an even at Raj Bhavan, Ravi had said if a bill doesn’t get his assent, it means that the bill is dead.While that needs to be watched, the sheer returning of the Bills en masse puts the spotlight about his role and powers. Is he over stretching it? For while, a Governor is expected to approve Bills passed by Assembly, returning these, raise questions about the balance of power between the state and the Central authorities. In this case, there is need to set that glaring imbalance right. Enough is enough.

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Muscle & Money Power

The Election Commission has a long way to go before it can rein in ‘money and muscle power’ in elections. Details of candidates in Madhya Pradesh and Chhattisgarh Assembly polls are the recent most examples to confirm the misgivings of the democratic system being ‘free and fair’. As per Association for Democratic Reforms data, of the 2,534 candidates in MP, where polling took place on Friday last, 472 candidates have declared ‘criminal cases’ against them: Congress (291), BJP (65), AAP (26), SP (23), BSP (22) and Independents (215). Worse, 291 have declared ‘serious criminal cases’: Congress (61), BJP (23), AAP (18) and BSP and SP both 16 each, Ind (157). In Chhattisgarh, which too wrapped up its 2^nd phase of polling it’s no different: of 958 candidates, 100 declared criminal cases: 13 of Congress, 12 each of BJP and AAP, JCC-J, 12, BSP 2 and Ind 50. Of the 56 ‘serious criminal cases, Congress has 7, BJP and JCC-J 4 each, AAP, 6, BSP 1 and Ind 34. Next is the ‘crorepati’ list in MP which reveals 727 are in the fray: 200 fielded by BJP, 196 by Congress and rest belong to other political parties. In Chhattisgarh 253 crorepati candidates are contesting: 60 candidates by Congress, 57 by BJP, the rest from other parties. People’s representatives, is what they are known as?

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Now Bureaucratic Scam

All eyes are on the latest rift between the Delhi government and the Centre. On Thursday last, Delhi vigilance minister Atishi wrote to the ED and CBI, seeking a probe into Chief Secretary Naresh Kumar viz alleged financial irregularities in the acquisition of land for the Dwarka expressway. The scam has led to Chief Minister Arvind Kejriwal writing to LG Saxena recommending Naresh’s immediate removal and sending the 670-page to CBI or ED for further investigation.Atishi has said the investigation found that the Chief Secretary benefited a company linked to his son with over R.850 crore of “illicit profits”. “A clear nexus has been found between Naresh Kumar, his son Karan Chauhan and the beneficiary land owners who were provided a windfall gain of Rs.897.1 crores at the cost of public exchequer...” it read. She also recommended removal of Divisional Commissioner Ashwani Kumar to ensure a fair investigation. Expectedly, Naresh has denied all charges, claiming he was being targeted for ordering probes into several cases, including Kejriwal’s home renovation and alleged excise policy scam. Be that as it may, the truth must come out and not be pushed under the carpet as one of the ongoing brawls the ruling AAP has with the Centre over control of the bureaucracy.

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Tunnel Tragedy & Warning

The Silkyara tunnel tragedy in Uttarakhand, trapping 40 labourers sadly reinforces the government brazenly ignoring the eco-warning time and again. The tunnel near Uttarkashi, whose portions caved in on Sunday last is part of the controversial Rs 12,000-crore Char Dham all-weather road project involving four-laning of hillside highways. These mountains said Minister of State of Road Transport and Highways V K Singh ‘are young and fragile…according to data, it (tunnel) was stable for four-and-a-half years. But for some reason, the cave-in occurred.” Absurd, to say the least as the government and National Highways & Infrastructure Development Corporation Ltd failed to heed to environmentalists and scientists’ warning that excavating such highways and building many tunnels in the name of development of backward regions is a recipe for engineering disaster at high altitudes. ‘For the future, we will review wherever such tunnels are being constructed,” was Chief Minister Pushkar Singh Dhami response to not heeding to warnings and playing around with the fragile ecosystem in the Himalayas. No solace for the families of the labourers.

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Southern States Firm

Five southern States have forced the National Medical Commission to put on hold its decision to limit number of MBBS seats to 100 per 10 lakh population in every State.On Wednesday last, the apex medical education regulator announced that these “Guidelines for undergraduate courses under the establishment of new medical institutions, starting new medical courses, increase of seats for existing courses, and assessment and rating Regulation 2023” will now be implemented for 2025-26 academic year, only after there’s consensus following further stakeholder consultations. While the restriction would have allowed 40,000 more MBBS seats in states such as Bihar and Jharkhand, where there’s over 70% deficiency as per new seats-to-population ratio norm, the States of Andhra Pradesh, Tamil Nadu, Karnataka, Telangana and Kerala, would have been barred from raising their medical seat capacity, which they all plan, for the next academic session (2024-25), as these have already exceeded the ratio. The Commission must tread carefully for not only States, but students too mustn’t be penalised!

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Curbing Female Student Dropouts

Three cheers to the Supreme Court! It has sought to ensure that adolescent females between 11-18 years, hailing from poor families, don’t drop out of schools because of lack of basic facilities such as toilets and sanitary towels. It has asked the Centre to put down a “national model for ratio of number of girls’ toilets per female student population across government-aided and residential schools in the country”, before finalising the draft National Menstrual Hygiene Policy, 2023. Besides, it must bring about uniformity in modalities to be followed for distribution of sanitary napkins by considering practices followed in States. The top court was dealing with a PIL seeking free sanitary pads to every female student in classes 6-12, separate toilets for females in all government-aided and residential schools and awareness programmes on maintenance of toilets and spread of awareness. Earlier, it asked the Centre to engage with all State governments and UTs to ensure a uniform national policy is formulated with sufficient leeway for them to adjust based on prevailing conditions. This would aid the National Health Mission steering group to reevaluate national guidelines. Sooner the better.---INFA 

(Copyright, India News & Feature Alliance)