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Events and Issues
Food, Fuel Inflation: PSU STRENGTHENING VITAL, By Shivaji Sarkar, 21 June 2021 |
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Economic Highlights
New Delhi,
21 June 2021
Food,
Fuel Inflation
PSU
STRENGTHENING VITAL
By
Shivaji Sarkar
The Indian economy may
have started recovering with the unlock but galloping inflation, increasing healthcare
expenses and rising unemployment are major banes.
The global economy is
to rise by 4 per cent and India would marginally benefit from it with some rise
in exports. A World Bank report wants India to create 90 million jobs in
non-agricultural organised sector, a herculean task as most private sector
offices are either closing down or slashing operations. Humanitarian crisis,
hunger deaths and societal conflicts are growing.
Latest figures
indicate 12.69 per cent inflation primarily on F2 – food and fuel. The fuel
price rise is hitting every sector of the economy with nobody to correct it. The
basic price of petrol remains still around Rs 35.99 and over Rs 65 are the Central
and State tax components. The edible oil prices have reached crisis points with
62 per cent spike, Union Food Secretary Sudhansu Pande says. This follows
withdrawal of edible oil from essential commodities list in September 2020
A State Bank of India
(SBI) report says that massive increase in healthcare,
especially in the hinterland, steadily rising fuel prices and online
delivery of articles will increase inflationary pressure much higher on the one
hand and crowd out other consumer spending on the other, putting a big question
mark on overall growth that's still being driven by consumption demand.
Month-on-month increase in inflation on non-institutional medicines, X-ray,
ECG, pathological and other clinical tests is taking a heavy toll not only in
urban areas but even on the rural populace.
The SBI report has
questioned the headline inflation figures announced by the Union Finance Ministry.
It says that a more important price concept is the relative prices, which are
not a monetary phenomenon but their movements convey important information
about the scarcity of particular goods and services “as now like health”. Health expenditure, which currently constitutes 5 per cent
of overall inflation basket, may jump to at least 11 per cent. It may be noted
that health expenditure is around Rs 6 lakh crore or 5 per cent of the private final
consumption expenditure (PFCE). This is likely to also result in squeeze in
expenditure on other items of discretionary consumption.
The daily
increase of fuel prices is another bane. “And if we look at credit card spends
since December, CPI computed inflation for the five month ending April is
higher than the CSO estimate on an average by 60 basis points and the higher
oil prices had forced consumers to ration out discretionary spends in
December”, says SBI Chief Economist Soumya Kanti Ghosh. It means the actual inflation
is 60 per cent more than the CSO figures.
The Reserve
Bank of India has virtually given credence to the SBI finding as it estimates
Rs 2 lakh crore losses on economic output. It cautiously says that it
may not reflect on GDP but there would be a considerable value loss across the
economy. The SBI report clarifies it as the share of non-discretionary spend
which has jumped to 59 per cent in April and 52 per cent and in March and “this
does not augur well”.
The
inflation is to further rise as the US has matched its interest rate rise. It
would impact India as well as there would be commodity price rise globally. The
RBI under government suggestion has suppressed interest rates but it will not
help keep prices low. It will make difficult for the RBI to manage the
conflicting targets of inflation, exchange rate and adequate liquidity amidst
weak growth.
The RBI
has already lowered its GDP projection to 9.5 per cent from 10.5 per cent. It
had hoped 18.5 per cent recovery in the first quarter, considered low base
given the contraction last year. Now it is skeptical due to the second wave of
lockdown, which sees decline in deposits, indicating higher household expenses
and lower savings. Additionally, currency holding i.e. cash with the people decelerated to 1.7 per cent
during April against a growth of 3.5 per cent last year.
It
substantiates what the SBI says that extra expenses on households have
increased manifold. Also, there has been
an increase in use of online delivery platforms which is not considered by the
NSO and if the NSO considers online prices, there will be 10-15 basic points’ (bps)
impact on CPI inflation. The SBI says that the online delivery adds to
inflation. The RBI says that the increased healthcare and other expenses have
impacted domestic demand. That is the reason of delayed recovery of
manufacturing, core sector and other activities.
The
recovery process, says the SBI, needs cut in fuel prices by tax
rationalisation, otherwise non-discretionary spends will continue to get
distorted and cause inflation. The RBI has given another formula. It has gone a
bit beyond and wants to partner with private sector – in short a prescription
for further denuding the PSUs. The recommendation should make the authorities
rethink on privatisiation.
Over the
last few years, major PSUs have consistently increased payouts to the
government despite a dip in their profitability. Since 2016, as per an official
diktat they are paying a minimum 30 per cent of their profit after tax or 5 per
cent of their net worth, whichever is higher, as dividend.
The 100
government companies declared a dividend of Rs 71857 dividend during 2018-19,
according to the CAG. In 2021, the PSUs
paid dividend of Rs 39,022 crore (against estimate of 34717 crore), the RBI
paid Rs 99,000 crore dividend and other banks Rs 1619 crore in 2020-21. In
short a major part of government expenses are being funded by the PSUs. The
government’s efforts to sell PSUs are being stonewalled by poor economy. It
should rather change its policies to strengthen the PSUs.
Despite
this the India remains an investment destination. Healthy flow of FDI into the
country corroborates India’s strength and attention of global investors,
industry chamber CII says. Total equity, re-invested earnings and capital rose
10 per cent to the highest ever $ 81.72 billion during 2020-21. The RBI expects
recent government boost in capital expenditure to spur activity and investment.
For all
this, however, there has to be a major shift in policy thrust. While private
investments must rise, the government must relook at strengthening PSUs to tide
over the crisis that is beyond the capacity of the private sector. This would
alone cut prices and boost demand. –INFA
(Copyright, India News &
Feature Alliance)
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BJP Covid Strategy: TIME TO PROFESS EMPATHY, By Sagarneel Sinha, 19 June 2021 |
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Spotlight
New Delhi, 19 June
2021
BJP Covid Strategy
TIME TO
PROFESS EMPATHY
By Sagarneel
Sinha
Prime Minister
Narendra Modi’s popularity has taken a hit due to the devastating second Covid-19
wave. The timing not too good as the BJP government completed seven years in
power. Although the wave has been declining, the sufferings of those families,
who lost their dear ones to the pandemic, won’t fade away soon. It will take
time to heal. And the ruling party would need to do damage control.
Amid all this, if one
looks at the narrative of the ruling party, it appears that the Modi government
has done no wrong in tackling the virus. True that such a pandemic happens once
in a century and it’s not possible for any government to completely stop the
spread of the virus, but how can the BJP escape the fact that the Centre was
complacent about tackling the fight against the virus in the country?
If this question is
asked, the usual response from the BJP leaders and spokespersons is that the Opposition-ruled
States were complacent too and health is a State subject. Agree that health is
a State subject and the Opposition-ruled States like Kerala, Maharashtra,
Chhattisgarh, Punjab, Delhi, etc failed to curb the spread of the virus, but what
about BJP-ruled States? From Karnataka to Gujarat and from Madhya Pradesh to
Uttar Pradesh, the deadly second wave of the virus was visible there too. The
saffron party leaders can’t run away from these facts by just pointing to the
failures of the rivals.
Since the BJP came to
power in 2014, the problem of the party is that it still behaves like an Opposition
party where the party spokesperson on a routine basis only criticises the Opposition
parties, particularly the Congress. It’s absolutely fine for the BJP to do so
as it’s a part of politics but the problem lies when the party fails to admit
its own mistakes. BJP leaders spent more time condemning Congress party’s
unofficial President Rahul Gandhi’s ‘silly’ tweets, which lack proper
consistency on crucial issues and are aimed more at ridiculing Modi day and
night.
Here’s the main
problem. BJP is the ruling party and citizens look towards Modi to solve their
issues, particularly during such a crisis. Undeniably, these hopes took a hit
during this second wave but the BJP, as the ruling party, has more
responsibility to address these and should have acted. Unfortunately, the
leaders and even some Cabinet ministers were more interested in denouncing
Rahul, wherein the effort was not necessary given that his credibility within
his own party is low.
Recently, Modi in his
address to the nation course corrected the vaccination policy by announcing its
centralisation drive. The PM blamed some of the Opposition-ruled State
governments without naming them for repeatedly asking for decentralisation of
the programme. He was correct that these States without even checking their own
ability asked for decentralisation. It is when they realised it wasn’t possible
for them, they started blaming the Centre together for creating a mess, reversed
their stand and wanted Centre to take control.
There is no denying
the fact that it was inappropriate of Modi not to admit even once for the mess-up
of the vaccination programme. That the Centre had to give in to the State gov
government’s demands does reveal that it was lacking a proper vision at the
national front. Modi’s address, which otherwise was a fine, dealt with the
vaccine issue hesitatingly. It would have been better for him to openly
acceptthe errors committed by his own government and show confidence of making
amends.
Unfortunately, the
present dispensation thinks that admitting own flaws will affect the image of
the government. Mistakes do happen. Why does the government believe that it
can’t commit mistakes? Last year, Modi himself apologised to the nation during
the time of migrant crisis. Apology for a blunder doesn’t diminish the image.
It only shows the commitment towards honesty. But, this government believes
more in strength, and the BJP IT cell too loves to create the narrative that
the Modi government is a very strong one.
Agree that power is
necessary for running a government but every issue can’t be solved through
showcasing strength. Empathy is required too. If one looks at the languages of
BJP leaders, particularly spokespersons appearing daily on noisy TV debates,
one realises that sensitivity is missing from their statements. That these
party spokespersons, despite seeing pyres of thousands of dead bodies in the
crowded crematoriums, still debate and try to compare the low death rates of
the country with other countries of the world. At this time, such comparisons
sound hollow and cruel too for those who lost their dear ones.
This lack of empathy
is seen in BJP’s approach with its allies — and this has reduced the NDA to
just a merely existing body. In the present Modi government, there are no Cabinet
ministers from the NDA constituents. The only non-BJP minister is RPI(A)’s
chief Ramdas Athawale, who is a Minister of State. There is a buzz of a Cabinet
reshuffle, where, if the reports are to be believed, the Modi government is
expected to include some NDA constituents in his Cabinet. If the rumour turns
true then it is a right step by the BJP towards accommodating its allies, who
have been ignored long and feel disappointed.
Nitish Kumar has been
miffed with the BJP leadership for not accommodating his party in the Union Cabinet.
To be fair, before the 2019 Lok Sabha polls, BJP did accommodate JD(U) by
ceding its own five seats. But, Nitish's discontent is reasonable too.
Similarly, Uttar Pradesh- based Apna Dal (S) leader Anupriya Patel, who was
earlier a minister in the first Modi government, is unhappy for not giving her
party respect at both State and Centre level. She recently met with Home Minister
Amit Shah, who also happens to be the NDA chairman and so did Sanjay Nishad
from Nishad party, another small ally in UP, to urge them to look beyond their
own members and leaders.
Clearly, mere lip
service of practising coalition dharma isn’t enough. That’s the reason BJP,
which once championed practicing coalition politics, is today facing
allegations in the Modi-Shah era for sidelining its allies. The situation of
NDA has changed with the gigantic rise of BJP and some allies make unreasonable
demands too, but the saffron party must listen to the grievances of its allies
and pay more attention towards the feelings of citizens. It has to look beyond
its approach of only winning elections and forming governments. It must put
sharp focus on a political approach based on empathy. ---INFA
(Copyright, India
News & Feature Alliance)
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G7 Changes Gear: NEW DELHI HITCH-HIKES, By Dr D.K.Giri, 18 June 2021 |
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Round The World
New Delhi, 18 June 2021
G7 Changes Gear
NEW DELHI HITCH-HIKES
By Dr D.K.Giri
(Prof. International Politics, JIMMC)
The G7 Summit in
Cornwall, the Southeast coast of England was significant on more than one count,
unlike in the past. The Summit turned a new page with active return of the
United States to the table, as it was emaciated by latter’s vacillation under
the tumultuous tenure of Donald Trump. It made a bold and historic proclamation
of formation of a ‘coalition of democracies’ against autocracies. The Summit
named China the main adversary as a system-threat. And New Delhi, at the behest
of the UK, backed by France and the US, seamlessly hitch-hiked to the G7
caravan.
The Summit made some
serious decisions on the emerging international issues, that were listed mainly
under three rubrics in the 25-page communique issued after three days
deliberations from 11 to13 June. They were the 3Cs of current concerns of heads
of seven countries gathered there -- China, Covid and Climate change.
G7 comprises seven
advanced economies, which are all liberal democracies marked by pluralism and
representative governments. The grouping began as an informal, ad hoc
arrangement. In the wake of oil crisis in 1973, US Secretary of Treasury George
Shultz called a meeting of Finance Ministers of Germany, France, Britain to
discuss collaborative actions to deal with the situation. The meeting was held
in a library building in Washington DC. So initially the group of 4 was called
the Library group. In mid-1973, on US’ suggestion, Japan was included in the
group to make it G5. Then two more countries joined the group-- Italy in 1975
and Canada in 1976, to make it G7.
In 1998, following
the transition of the Soviet Union into democratic politics, Russia was invited
to join the group. Again in 2014, in the wake of Russia annexing Crimea, its
membership was suspended and later terminated. Other countries are invited as
guests from time to time in order to ‘deepen the expertise and experience’
around the table.India has been attending the G7 meetings since 2003 as a special
guest.
The countries invited
to the Summit included India, Australia, South Korea and South Africa. There
was some hint at expanding the group to 11 and call it D11, but no such
decision was taken. However, the more expanded group called G20 will meet in
Italy next month. This Group includes India and China as well. It will be
interesting to watch how China will be treated in this meeting.
G7 obviously targeted
China mentioning it four times in its final communique. Beijing has sharply
reacted. The spokesman of the Chinese embassy in London said, “The day when
global decisions were dictated by small group of countries are long gone”.
The Summit in Cabis
Bay was mainly to build a coalition of democracies to counter the growing
influence of China. This was in keeping with the fresh initiative taken by Joe
Biden for consolidating democracy in the world. Soon after he took over, he has
been sounding out to US allies and partners to organise a World Democracy summit.
The G7 countries reiterated their resolve to deepen democracy, “We will harness
the power of democracy, freedom, equality, the rule of law, and respect for
human rights to answer the biggest questions and overcome the greatest
challenges”.
Biden revealed the ‘push-back
China’ strategy when he said, “democracies are in a contest with autocracies, G7stood
united anew in its democratic values.”. The G7 said, “We will promote our
values including by calling on China to respect human rights and fundamental
freedoms”. This is the point of entry for India into this coalition. Prime
Minister Narendra Modi, digitally addressing the session on Open Societies and Open
Economies, highlighted India’s civilisational commitment to democracy, freedom
of thought and speech. He pointed out “authoritarianism, terrorism, violentextremism,
disinformation and economic coercion as big challenges facing the world today.”
New Delhi has to leverage
its political assets for buildingcoalition against external aggression and
economic coercion. Although Modi did not mention China in his speech, it was
obvious,coinciding with G7’s reference
point.
But New Delhi will
have to walk the talk. India has had the largest number of internet shutdowns
in 2020. India is getting a bad press internationally for slapping sedition
cases, arresting those questioning official policies, raiding offices of
newspapers and social media. These do not bode well for India’s unsullied image
on democracy and human rights. In a way, it is good that India is shedding off
the image of soft-State, but the transformation should manifest in maintenance
of law and order, apprehending and punishing the economic offenders, criminals,
and fending off external threats and bullying, not in going after dissenting
voices.
Minister for External
Affairs Jaishankar participating in the Ministerial meeting of G7 earlier on had
said, “opensocieties and personal freedoms require careful nurturing. It must
be on guard against fake news and digital manipulation”. It is true that anyone
spreading disinformation that causes social disharmony, conflicts and harm,
should be brought to book. The harmless fake news could be ignored by the State
and be left to the internet users to decide for themselves. The media handles
could also have some mechanism for factcheck etc.
On Covid, G7 endorsed
the US initiative for a thorough probe into the origin of the virus. It said, “We
call for a timely, transparent, expert-led and science-based, WHO-convened
phase-2 Covid-origin-19 study including as recommended by the experts’ Report in
China.” Even WHO has called upon China to help in the renewed investigation,
but it remains defiant. Beijing suggested that covid virus was found first in
USA, then it changed to Italy, and one of its studies suggested it came from
monkeys in India which were fighting amongst themselves for water etc. China
then said, it originated simultaneously in many counties but Beijing was first
in reporting it. However, despite China’s diversion and disinformation, the
probe is back on the front burner.
G7 promised to raise
$12 trillion on pandemic recovery plan. It also promised to supply 1 billion
doses of vaccines to the world. But this is too little as the world needs 11 to
12 billion doses.Only 0.3 per cent of the vaccines has gone to the poorest in
the world. Perhaps India can fill the void, if the IPR on vaccine is waived.
India supported by South Africa made this request. France has also called upon
the fellowG7 members to help India access raw material for vaccine production.
It was resolved to
enhance the climate finance. The G7 said, “we reaffirm the collective developed
countries’ goal to jointly mobilise $100 billion a year from public and private
sources through to 2025 in the context of meaning formitigation actions”. It
was also agreed to scale up technologies and policies to speed up the
transition away from unabated coal capacity. This issue could be further firmed
up in the UN Climate Change Conference (COP-26) in November.
The other major
decision was to build an alternative to Chinese Belt and Road Initiative (BRI)
which created a debt-trap, by a project called Building Back Better for the
World, acronymed B3W. India is inclined to join this initiative as it had
refused to be a part of BRI.
To conclude, the
bugle has been blown by the G7 to counter China. India is a part of the march.
It better play its part resolutely strategically. --INFA
(Copyright, India News & Feature Alliance)
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Union of States: NOT TRADE UNIONS, By DrS.Saraswathi, 17 June 2021 |
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Events & Issues
New Delhi, 17 June 2021
Union of States
NOT TRADE UNIONS
By DrS.Saraswathi
(Former Director, ICSSR, New Delhi)
WestBengal Chief MinisterMamata Banerjee has
called upon “Opposition parties” to band together to prevent the BJP from
“destroying federalism” and playing “dirty politics”. She proposed the formation
of a “Unionof States” to stop the “BJP from bulldozing State governments run by
other parties”.
It is culmination of the cold war between
theBJP and the TMCthroughout electioneering in West Bengal and thereafter.Strong
words have been used, and politically significant terms like federalism and
union of Statesused in this call which seems to have been made with a purpose.
The term federalism does not appear anywhere
inthe Indian Constitution. India is already
declareda Union of States in
Article 1 of the Constitution.
The CM seems to have meant united action by
political parties and pressure groups opposed to the BJP toremove it from
power. States form a joint familyfor this purpose.The call was made after her
meeting withBharatiyaKisanUnion leaderRakeshTikait atthe Bengal Secretariat who
alsopraised thisCM as“a fit candidate for PM”.
Aftera spectacular victory in West
BengalAssembly election, the TMC has been emboldened with extraordinary confidence
to speakof a “union” against the Union government. It isrevival of theidea of forming
a united front tried many times before General Elections.
Theidea hasgainedvigoureversince thesteady
loss in the strength of the CongressParty,State after State, removing it from
the status of being the main opposition to the BJP.Farmers’ protest,which has
some potential to escalate as an all-India movement because of all-India impact
of farm laws anddue to motivated political party support and calculated
propaganda is serving as auniting factor.
“In a federal structure,there shouldbe aUnion
of State governments. If anyState is harassed,
then other States would fight for
it. Every Chief Minister (of non-BJP ruled States) should stick together. I
would urge every opposition party to unite (against the BJP) to save democracy”,
said Mamata.
State and State government are terms used
interchangeably, but these are not synonymous. States are immaterial social objects, organisations,
whereas government is an apparatus made of groups of people vested with power to
control and govern the State at a particular time. Government is the tool with which State power
is employed.
In 2017 also, in the preparatory stage of
2019 election, Mamata Banerjee, along with KCR of Telangana, was keen on
forminga Third Front. She wanted strong States by transfer of many subjects
from Union list to State list. She said that the Centre should keep only four
departments under its control – defence, external affairs,currency,and railways
- and focus on diplomacy,defence, national security, and national highways.
Indiais declaredin the Constitution as a
union of States and not federation of States. It hassignificant unitary and
non-federalfeatures also such as a strong and indestructible centre, single Constitution that is flexible, single
citizenship, integrated judiciary, All-India Services, emergency provisions granting
powertothe Centre to override States, right of President in the case of bills reserved
for his consideration by the Governor of a State,and veto power over bills
passed by a State legislature that limit the autonomy of States.
In the uneven development of different parts
of the nation then and which still continues, to establish freedom, equality,
and justice, the authority of the Centre has to prevail.
Ambedkarhas stated that there are two crucial
provisions that make India a “Union of States”.
One is that it was not born out of an agreement among States like the
American federation; and another is that States cannot secede from the
union.The division of States is made for convenience of administration. Suggestions
to declare India as afederal republic of autonomous units were expressly
rejected in the Constituent Assembly.
Still, States are not appendages to the
Centre. Federalism in the Indian Constitution, in the words of the Supreme
Court in SRBommai case (1994) “is not a matter of administrative convenience,
but one of principle – the outcome of our own process and a recognition of
ground realities”.Read along with Ambedkar’s elucidation, it becomes clear that
the Union of States, which may be deemed Indian model of federation -- has been
adopted as a basic principle.
It is often described as an indestructible
union of destructible States. That is why it has been possible in our country toreorganiseStates,
redraw State boundaries, bifurcate and trifurcate states, and form new States. States cannot
secede from the Indian Union while in federal States like USA or Pakistan, States
can secede.
Bengal CM’s call is for a Union of States and
the appeal is to non-BJP ruled States and not for all States. It brings in
political party affiliation as the qualification to join the Union and take
part in united action. The target for change is notthe Constitution, but the
ruling party at the Centre. Such a Union
obviously will not be needed once the ruling party at the Centre is changed.
Harold Laski, whose books are prescribed as
textbooksin political science, raised doubts over the survival of federalism as
an approach to political organisationin the context of the US. But, federalism
survives and is going strong at national, sub-national and international levels
and demands attention and changes. There are varieties of federal governance in
different countries across the world like cooperative federalism, competitive
federalism, and coercive federalism.
Regional parties have become vociferous in
claiming more say in governance in recent decades as they have become key
players in deciding governmentformation at the Centre and States after many
elections. Social diversities are at the base of the multiparty system giving
rise literally to hundreds of political parties. Coalition governments at the
Centre with no party winning majority of LokSabhaseats led to increasing
influence of regional and even local parties thereby increasing demands of State
governments ruled by regional parties.
Demand formore autonomy for States as a
practical solution, as a right, as political necessity, and as logical politics in the context of
coalition governments are the newfactors workingin Indian federalism. StrongState leaders have
emerged, many ofthem better known and even morepopularnationally than many ministers at
the Centre.Such leaders, who cannot aspire for
leadership of the entire nation, but able to play a vital role in
national politics in coalition governments are keen on claiming more powers for
State governments and more say for States in national issues. They tend to come
together and form a “Union”.
Union of States are not trade unions to play apolitics
of demands and threats, strikes and bandh,
non-cooperation and boycott and try to undermine laws and regulations.
Opportunistic unions will not serve
national interests. Unions mustassumea high moral stature if they have a
genuine cause to come into existence. The country does not need mere protestors
to what the Centre does.---INFA
(Copyright, India
News & Feature Alliance)
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Free Vaccination: EASIER SAID THAN DONE, By Dhurjati Mukherjee, 16 June 2021 |
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Open Forum
New Delhi, 16 June
2021
Free Vaccination
EASIER
SAID THAN DONE
By
Dhurjati Mukherjee
The Centre will start
rolling out free vaccines to all States for those above 18 years from next
Monday. However, the big question is whether this time round it would have done
its homework thoroughly. More so, as to achieve its target of fully vaccinating
its adult population of around 94 crores,by year end, it will have to step up
the average daily vaccination levels close to five times from what has been
achieved from January 16 to June 7. This possibly appears an impossible task
and experts are unanimous on this point.
States such as Uttar
Pradesh may need a nine-fold jump in daily vaccinations, Bihar over eight-fold
and Tamil Nadu, Jharkhand and Assam over seven-fold. Five of the country’s most
populous States in terms of 18 plus population face the task of raising the
daily vaccination levels five-fold or more.
According to census
projections, it would need to administer further 170 crore doses in the
remaining 231 doses of the year. That would require an average of around 75-80
lakh doses a day (weekends included), a nearly five-fold increase over the
average so far. Vaccinating such huge population is not merely a challenge of
supplies. It would mean adding many more vaccination centres than have been
used at any point in the vaccination drive and finding the extra personnel
needed to man them and to administer the doses.
Therefore, it’s
necessary that there is close coordination between Centre and the States and
that there is a task force set-up or the existing Raisina Hill-centric one
revamped, which enables proper monitoring of the vaccines’ supply and
distribution. It needs to be noted that Prime Minister Modi made the
announcement of Centre’s decision to buy 75% of jabs from vaccine makers,
including 25 per cent of the State quota, and give it for free, following strictures
of Supreme Court on the differential pricing in purchase of domestically
manufactured vaccines.
The apex court had raised
serious doubts about the Modi government’s liberalised vaccine policy of
“fixing higher prices as a competitive measure” and stated that it’s the
responsibility of the Centre and not the States to provide free vaccination.
The bench headed by Justice Chandrachud said the Centre’s policy of allowing
vaccine manufacturers to charge the States’ higher rates violated the
fundamental right to equality, as did its policy of providing free vaccination
only to those aged 45 and above. The court underlined that this year’s annual
budget had set aside Rs 35,000 crore exclusively for vaccine procurement and
wanted to know how it has been spent.
The present cost of
free vaccination would come to around Rs 45,500 crore and to make a modest
recovery of expenses, only those who can afford to pay can get the jab from
private nursing homes. Unfortunately, though the Centre chose to ignore
experts’ advise on pandemic control and vaccination of maximum population
through development of health infrastructure. Diverting maximum resources
towards this end, specially by shelving the Central Vista project by at least a
year or two, would have been the right decision.
This was a demand
among others raised in a joint letter by 12 Opposition leaders to Modi as also
a group of 187 eminent persons, who pointed out that “it is shocking that the
GoI has neither welcomed the suggestions (of Opposition leaders) nor created a
truly national task force comprising all parties, State governments, experts
and civil society to tackle the unprecedented situation India is facing”. It too
had regretted the Government outsourced procurement of vaccines to States,
resulting in “differential and exorbitant rates”.
While the sticky issue
of free vaccines for all stands resolved and the Centre giving in, it would
also need to consider seriously the large number of children in the country who
could be affected by the pandemic. Our current vaccination policy extends to
cover all those above 18 years. There is need for herd immunity level of 80% to
contain the epidemic. It is impossible to achieve this level by vaccinating
only those above age 18. Thus, India must urgently draw up plans to vaccinate
children under 18. The question that arises is how long will fear of Covid keep
children away from schools, given that parents, children, teachers,
educationists, nutritionists and paediatricians are all alarmed by the adverse
effects on children’s well-being.
With vaccinations
still moving in a rather slow pace in the past two months and unlikely to pick
up steam from July, there are fears that the incidence of the pandemic may not
be curbed in rural and semi-urban areas. However, even here an internal
government projection for August and September shared by a source put the
monthly number of Covishield doses at 100 million out of 200 million for all
the three approved shots combined, as claimed by the government.
The official figure
of those who contracted the disease had reached 30 million (widely believed by
experts to be a gross under estimate) and deaths exceeding 300,000. Meanwhile
the The New York Times had suggested last month that actual Covid
infections in India could be 20 to 26 times the government figure and the death
count could be 5 to 13 times the official toll.
A section of experts
are talking of a third wave as official warnings have surfaced of this
possibility. Though the magnitude of its impact is yet to be ascertained, its
incidence is likely to impact children. The fear is perpetuated by the shocking
slippage in vaccination coverage and the shortages of vaccines for adequate and
fast protection of the virus. Moreover, the fear factor may restrict mobility
and social and economic engagement and sentiments of consumers may not be back
to normal in the coming months.
The problem in the
country is that the Modi administration being seen as heavily centralised,
there is little scope for professionals to air their independent views, even in
internal meetings. It is said Modi does not entertain other’s views and
professionals and experts have just to carry out orders. In such a situation,
what is needed is a decentralised system where views of experts are given due
cognisance and there is no diktat from the top.Note that in the United States,
it is a renowned expert Dr Anthonu Fauci, who is taking decisions relating to
the pandemic and related issues.
Advice of experts needs
to be given topmost priority and a communication drive launched that could
clear misconceptions and effectively tackle such pandemics or other types of
disasters. While vaccination has to be enhanced with not even 15% of the
population vaccinated as on date, it is also necessary to ascertain whether a
booster dose would be necessary within 12 months of full vaccination, as
predicted by Pfizer CEO.In all, pragmatism is the need of the hour, which sadly
has been lacking in governance so far. There is need to go beyond ad-hoc
decisions and take a holistic view of building the country’s health
infrastructure. The government would do well to remember, a stitch in time
saves nine.---INFA
(Copyright, India
News & Feature Alliance)
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