Seriously clueless

India, private equity and more ...

Sunday, November 20, 2005

The real India - lest we forget

Trust The Hindu to write an excellent article on how (poorly) Indian farmers fare, based on the latest NSSO data. The article also highlights growing inequities, as liberalization has helped the rich get a lot richer.

The collective net worth of 311 Indian billionaires is now Rs.3.64 trillion. This is up 71 per cent from last year, when it was a paltry Rs.2.13 trillion. The tribe has also grown. It now includes 133 new entrants who just months ago were merely millionaires.
So, Peter's doing quite well. How about Paul?
The average monthly per capita expenditure (MPCE) of farm households across India was Rs.503 in 2003. That is just about Rs.75 above the rural poverty line. And it is an average across regions and classes and income groups. So even this dismal figure hides huge inequities.
Its obvious he's not doing well at all. Here's what I found even more alarming -
The data from the NSSO survey on farm spending once again points to the link between poverty and family size. The average household size for farmers was 5.5 at the all-India level. But in those with an MPCE equal to or less than Rs.225, the number goes up to 6.9. On the other hand, households with an MPCE of more than Rs.950 were much smaller. Their average size was 4.1. Broadly, the better off the household, the fewer its members. In the NSSO survey, Bihar and Uttar Pradesh logged the highest average household size of 6.1. The poor tend to have larger families. That is their insurance against higher mortality. Particularly against infant mortality. The logic of "more hands to work" cannot be wished away.
I dont recommend robbing Peter to pay Paul. It's clear Paul needs help, though. I dont have any answers, and like most of us, havent done anything about it. For me, writing about the real India keeps me honest and reminds me that there's more to India than South Bombay. But I should get off my butt and actually do something about it.


At 2:55 AM, Anonymous Navin said...


I appreciate you writing on this and spreading the awareness among the readers on this.

Micro Credit and entrepreneurship building is a good way to boost their incomes.

Govt should also step in and create some plans to bridge the inequality.

I would say "Rob peter to pay paul" is not a bad thing at all. One example is the education cess that was introduced in the last budget.

At 12:04 AM, Anonymous robin said...

Maybe one thing you can help by sharing the rigor by which you judge companies and markets with business and social entrepreneurs who serve the Pauls of the world.

At 7:33 PM, Anonymous Anonymous said...

Forgive my ignorance regarding the per capita income of a farmer on a global basis but how does micro credit help? Is the business broken for farmers and is the solution to provide them with avenues to move out of agriwork? - aka manufacturing..or are there ways for the majority to stay in farming and still see increasing returns over a period of years with a low inflation rate..

At 4:33 AM, Anonymous AA said...

I started commenting at your post. But it kind of got a life of its own so I made it a post @

BTW, consider having a trackback from haloscan.

At 11:06 AM, Anonymous wow power leveling said...

Why was there no follow on bankruptcy then? The bailout of AIG FP went to (wow power leveling) hedge funds that bound credit swaps on Lehman failing or others betting on rating (wow power leveling) declines. AIG has drained over 100 billion from the government. Which had to go to (wow power leveling) those who bet on failures and downgrades. Many of whom (power leveling)were hedge funds. I-banks that had offsetting swaps needed the money from the AIG bailout or they would have been caught. Its an (wow powerleveling) insiders game and it takes just a little bit too much time for most people to think (wow gold) through where the AIG 100 billion bailout money went to, hedge funds and players, many of whom hire from the top ranks of DOJ, Fed, Treasury, etc. ZHANG XIAO CHEN

At 1:56 PM, Blogger Richard Jonson said...

A good informative post that you have shared and thankful your work for sharing the information. Got some appealing information and would like to give it a try. Applaud your work and keep sharing your information.Really impressed! Everything is very open and very clear clarification of issues.
Call Option || Option Tips || Stock Option Tips || Options || Nifty Options

At 2:33 PM, Anonymous Share and Earn said...

I had no trouble navigating through all the tabs as well as related info. The site ended up being truly simple to access.
Intraday Nifty Future Tips
Share market tips
Share and Earn.

At 2:55 PM, Blogger Alex Jonson said...

This comment has been removed by the author.

At 5:02 PM, Anonymous Stock Market said...

I’m satisfied that you simply shared this useful information with us.
Commodity tips || Stock Market || Share Market || Nse Tips || Bse Tips.

At 11:54 AM, Blogger Prachi Mehta said...

With this blog you really took our attention to the points that we never thought about. Thanks for sharing this with all of us. All the best, way to go
Indian Stock Market Tips

At 5:40 PM, Anonymous RipplesAdvisory said...

Very interesting and useful post even i would say that whole blog is awesome. RipplesAdvisory


Post a Comment

<< Home