Multidimensional Index, a bane for Kerala's steady planning and Development

Kerala has fast changing Economic model, which is burdened with problems, but hopefully, the many successes it has successfully woven, inhibit it from getting benefits from Union Government for bettering its economic lot. It is a bane, rather than being a blessing in disguise. The Dr Raghuram Rajan’s Committee which was asked to evolve a composite Development Index suggesting methods for identifying backwardness of States using a variety of criteria which can be reflected in future planning and which will pave the way for proper devolution of funds from the Central Government to States, has classified Kerala among the ‘Relatively developed’ States’, which would deprive it of developmental support from the Planning Commission, which it badly needs.

Dr Raghuram Rajan, who is currently the  Governor of the Reserve Bank of India and under whose personal leadership the Report bearing his name was prepared when he was the Principal Advisor to the Finance Ministry of the Government of India, has proposed a general method for allocation of planned funding from Centre to States based on State’s development needs as well as its developmental performance. The Committee had recommended that each State may get a fixed allocation of 0.3% of overall funds, to which will be added its share stemming from need and performance to get its overall share.

The Committee has come up with a Multi Dimensional Index of Backwardness based on per capita consumption as measured by NSSO, the poverty ratio, and a number of measures which correspond to the multi dimensional approach as defining ‘poverty’ outlined in the 12^th Plan. The Committee, has recommended that State’s that score 0.6 and above of the Index may be classified as’ Least Developed’, States that score below 0.6 and above 0.4 may be classified as’ Less Developed’ and States that score below 0.4 may be classified as ‘Relatively Developed’.

On the basis of this methodology the Committee has formulated, it has identified the states as Least, Less and relatively developed and went on to classify them in the different groups.

In the Least Developed Group, it has placed, Arunachal Pradesh(0.729),Assam(0.707),Bihar(0.765), Chhattisgarh(0.752),Jharkhand(0.746), Madhya Pradesh (0.759), Meghalaya(0.693), Odisha (0.798),Rajasthan(0.6260), Uttara Pradesh (0.638), while Manipur (0.571),W Bengal(0.551), Nagaland (0.546), Andhra Pradesh (0.521), J&K (0.504), Mizoram (0.495), Gujarat (0.491), Tripura (0.474), Karnataka (0.453), Sikkim(0.430), Himachal Pradesh (0.404) are grouped under ‘Less Developed Group’ while Haryana (0.395), Uttarakhand (0.383), Maharashtra (0.352), Punjab (0.345), Tamilnadu (0.341), Kerala (0.095), and Goa (0.045) have been classified under ‘Relatively Developed’ States.

The Committee, in order to arrive at the categorization has used a) per capita consumption as measured by NSSO; (b) the poverty ratio; (c) poverty criteria table application as spelt out in the 12^th Five Year Plan document.

The methodology adopted by Dr Raghuram Rajan, contrary to Gadgil Mukherjee formula, banks heavily on ranking states on the basis of NSSO monthly per capita consumption expenditure which is not a realistic and accurate picture to determine the state of the economy of a State. The Committee bracketed Bihar and Odisha as part of one slate, as least developed states, while Gujarat was categorized as ‘less developed’ while Kerala came the second best as Relatively Developed state. This alone, shows the political bias of a Report which should be more slanting towards mathematical and economic precision when fixing norms for plan delivery exercises through Plan allocation. Kerala, who has no patrons in the Planning body, feels that the Report is not judicious.

I would like to confine myself to Kerala State, which has been classified as Relatively Developed State, and through arguments would show why the classification is incorrect based on the standard used by the Committee to arrive at the methodology. It astonishes me that the learned Economist who prepared the Report ranked  Kerala, as the Second top state  while Gujarat, Maharashtra, are ranked very much low in the order, while Bihar and Orissa seems to be placed at the bottom of the Table.

Per capita consumption is measured by NSSO making use of the factor cost. It would be appropriate to use the ‘market price methodology’ as well, to arrive at the consumption level. Kerala is facing some economic structural challenges. Kerala’s growth in State domestic product (SDP) and consumer expenditure is due to high growth in service sector which in turn is facilitated by large scale remittance income from abroad. But many of the services are not tradable. NSSO data on consumer expenditure is often quoted to project Kerala topping the list. But a disaggregated analysis of the data will show that it is expenditure on education, health and other services contributing to the human development. It cannot be treated as ‘consumer expenditure’ in the State. These services do not help the state to levy ‘service tax’ as well.

Kindly refer to the definition of wealth, as, “Total of all assets of an economic unit that generate current income or have the potential to generate future income. It includes natural resources and human capital but generally excludes money and securities because they represent only claims to wealth. Two common types of economic wealth are (1) Monetary wealth: anything that can be bought and sold, for which there is market and hence a price. The market price, however, reflects only the commodity price and not necessarily its value. For example, water is essential for human existence but is usually very cheap. (2) Non-monetary wealth: things which depend on scarce resources, and for which there is demand, but are not bought and sold in a market and hence have no price. Examples are education, health, and defense.

Read 

more: http://www.businessdictionary.com/definition/wealth.html#ixzz2hbpodgTP”

Secondly, those who take education and becomes educated cannot get any job in the State because manufacturing activity that recycles the income into different brackets is not possible in Kerala, as it does not have manufacturing activity to produce cyclic economic activity, resulting in wealth changing hands. Neither the organized industry, nor the multinational companies or medium sized production units, either in the public or private sector, want to set up any facility in Kerala, due to many reasons. Kerala is the only state where there is no accretion of capital as investment. Even units in the defence establishment sector or the Railways have set up any unit, even though there is tremendous local talent available through mushrooming higher educational institutions set up in the Private Sector which has deployed Crores of Rupees worth of investment. Consumption expenditure, which forms the bulk work of economic recycling, is not apparent here. The money that comes from abroad, which spills over to individuals,  who hold it as a residuary cannot be termed as their per capita income which according to VKRV Rao method is annual income divided by Population. Income is earned by the Recipient, rather, it is kept with him as a residuary owner hence cannot become Income. This difference has to be borne in mind when the State Domestic Product is arrived at. The foreign money that flows into the Construction sector cannot be deemed to be capital invested and hence cannot come under the ambit of construction activity for which consumption activity tag may otherwise apply. The second mode of investment is in Gold, which is a dead investment. Kerala accounts for more than 25% of the 31,000 tonnes of Gold that is in the hands of private individuals. Its temples also possess gold. If buying and selling, becomes a part of consumption spending, then, the economic activity which is dead investment can be consumption expenditure in theory and not in practice!

Kerala has agro based industry like rubber which has production of 9, 25,000 tonnes equivalent to 93% of India’s total production of natural rubber in the Country. It is sold up-country for making value added products out of rubber. According to Rubber Board statistics, Production of natural rubber was 9, 03,700 MT while consumption of Rubber in the country was around 9, 66,415 MT while the import of Rubber was to the extent of 2, 14,433 MT. Rubber export from Kerala was at 27,145 MT. Instead of realization of around Rs 14,650 Cr as 100 Kg rubber was priced Rs 16,600 INR while it was $ 271.43 in the international market, the value added segment could have raked in 6 times the amount if there was a manufacturing activity here. The producers of Rubber products are all in the up-country. Low value for one of the priceless production of Rubber, which has its lion’s share of production in the state with a few units set up to produce rubber based products cannot be called ‘Relatively developed’ state needing lesser funds compared to the other ‘least developed and less developed funds’ where more funds will be deployed courtesy Planning Commission to upgrade industrialization to produce larger wealth.

Kerala is a literate state, having higher women: men ratio; It has higher infant mortality rate. Every year, it produces more people who have higher education. But its growth of industries compared to all India is so low, that these educated employed turn to other States and even plan to go abroad in search of greener pastures. In spite of the fact that we have 44 rivers, 41 flowing west and 3 in the eastward direction, our per capita consumption is lower than that of Rajasthan and the state is placed in the 19^th position amongst the 28 states. The per capita growth of Roads in the State is pitiably poor though there is connectivity.  Most of 1, 51,652 Km long roads in the State are in despair. Kerala’s waterways which can play a very important role in taking over the goods traffic is still to become a full force due to lack of investment. State’s power woes need desperate solution, as most of the power comes from hydro electric power sources which are dependent on monsoons.  Despite heavy monsoon and dams becoming almost full, power scenario is not so bright.  Kerala perhaps, is the only states which either get scanty monsoon or devastating rains which rather causes more loss than benefit.

Revenue from Tourism has risen to great heights at Rs 21,125 Cr, and every year, this income tends to grow, yet the State is not able to utilize in full strength the benefits nor revenue that flow from this industry. Kerala has the highest per capita consumption of alcohol in the country, but Government gets revenue from it, hence feel reluctant to let go the revenue as sources of revenue has dried up.

Even vegetables come from neighbouring states making Kerala a high consumer state. The robust textile industry has very nil manufacturing presence here. It is for this reason that it is called a Consumer state. Consumption can become a base, if there are manufacturing units which pushes up production, thereby accelerates consumption. Just because there is consumption, without corresponding economy creating wealth through its distribution, consumption expenses cannot rally as a point in creating wealth which is responsible for welfare. Therefore, to say higher consumption expenses has resulted in higher wealth, which is repatriated to the original centres of manufacturing, cannot create economic growth as Dr Raghuram Rajan's report tend us to believe.

Against the income that the Below the Poverty line people get can by no means be explained away as Poverty ratio is coming down in Kerala. Against high costs, the low income group consistently earns but sustains itself by going for multiple jobs to get fair wages to enable him or her to sustain the family. In Kerala, you can see, more than 1 member of the family seeking livelihood options to feed the family. Assuming that the estimate of poverty families by the definition suggested by the Planning Commission show that there is a large number of households who are in the peripheral income group of the definition, yet, have no sufficient ways and means of increasing their wealth so as to enjoy the ‘welfare’ benefits that Plan programme subscribes to.

Comparing the un-employed list of 40 lakhs in the employment exchanges is no guarantee of confirming that the unemployment has come down in Kerala. Since employment opportunities are almost nonexistent, new qualified young men do not register in the employment exchange. They go to other pastures, where job seeking result in getting employment.

The present criteria fixed for extending benefits to develop the state on various criteria drawn up by Dr Raghuram Rajan Committee is flawed. The sources of developing multidimensional Index are not accurate. The conclusion based on artificial reading of the growth parameters against distinct objective conclusions was not followed by the eminent Economist.  For development to have meaning, human development is only an engine that will cause better economic development, but necessary co-relation must be  made to develop the infrastructural and developmental engines which will add wealth and create welfare. Kerala’s micro growth criteria may fulfill text book theories, but the inertia of a large gap in the developmental model, will not help nor assist Kerala to grow to its potential if Plan assistance is not provided using criteria of developed human index with Gross domestic product from economic growth indices.   29^th annual meeting of the World Economic Forum (Indian Chapter) slated for Nov 8-9, 2013 has been called off. Even if held, it is not going to throw open opportunities to bring in huge investments. These meets are imageries which would glow state’s appetite for a pie in the investment module which will never come.

 An eminent Economist of world order like Dr Raghuram Rajan looking at peripherals and forming an opinion, has ranked Kerala as a ‘Relatively Developed’ State. His fundamentals on which he has based the opinion are flawed. This needs to be researched to come to starch reality. Kerala cannot be grouped under ‘Relatively developed’ states. Its eligibility to grow depends upon wider support Planning apparatus in crucial and critical areas offer. Kerala has developed a model called ‘Kerala Model”. This has created excellence in certain human development activities only. It has not looked beyond that. Hence a course correction in the model by bringing in economic development is the need of the hour.

User will pay for excess coal imported by coal fired power plants!

India’s Coal production (in million short tons) was 611.719 (2011) against world production of 7954 while in the latest year (2012) it had an anticipated production of 639.627. Its consumption during the same period was 662(2012) against world’s 4961 and the corresponding consumption in 2012 being 721.419. There was a nett import to the tune of 58.995 (2011) against 81.792 (2012).

India professed to an installed capacity of 211 gig watts of power in the coal fired plants. There was a huge shortage of coal in the country, as the primary source of power in India was from the coal fired projects. India has the fifth largest coal reserves, but it is not able to augment demand. India has 20 operational nuclear reactors and 7 more under construction at various stages (Source: eia US Energy Source information). 

India’s per capita consumption of power is less than that of the developed countries and 25% of India’s population lack basic access to electricity while urban areas which are electrified has unwanted blackouts. Largest energy source for production of power in India is from coal, and while industry sector consumed 40% of the power produced from the coal sector. Coal powered power plants are the fastest growing area of energy demand as it grew from 23% in 1990 to 42% in 2012. (US Energy Int Administration- Independent Statistics and Administration). In India, for economic purposes, Services industry which provides India’s half of economic output is relatively a non energy intensive source. Hence lack of urgent importance to the power sector which could accelerate India’s growth.

India imports 81.982 mt of Coal, and 75% of this coal is from Indonesia, while 19% is from S Africa and 1% from Australia. Indonesia is one of the biggest suppliers of Palm Crude Oil and RBD Palmoilein, which is used for distribution amongst the Public Distribution system beneficiaries to the extent of 10 million by providing a discount of 25%. India is one of the nations on which the foundations of Indonesia’s economy are built around. Indonesia exports 180 million tones from their production of 239.41 million tones. The prices for 1 MT FoB is around 50-60 dollar/Metric ton.

This is the general picture of sourcing of coal, its imports, its utilization, power produced used by coal fired plants, etc. The story begins now. Yesterday, the Cabinet Committee on Economic Affairs met under the chairmanship of the Hon’ble Prime Minister of India, wherein a contentious decision was taken to the effect that coal which are imported by individual power companies, or by Coal India Ltd, and the difference in prices paid between the import price and the domestic price shall be passed on to the users or consumers. Presently there is an import tax of 10% and the government in its wisdom will bring it under a Tariff Rate, where the exporter country or the importer at the place of holding will pay a lesser customs rate on the import value, while the invoice value will be his cost price. This price and the domestic price, the difference, will be added to the cost of power that is being distributed today or will be distributed tomorrow. This decision, Government sources claim was inevitable as it is expected to ignite 38,000 MW of new power in this power deficit country. For production of 1 MW of electricity, cost of capacity building would be approximately Rs 5 Cr (govt reveals this) .The Government encourages the power producers to go in for importing power; it is their responsibility. But the differential in sourcing and domestic price will be levied by the power company on the end user. This was what Association of Power producers asked for.

The Hon’ble Finance Minister feels, a few higher paise paid for a unit of power would not affect the common man, but it would have a big effect on boosting the power availability in the country. Our am admi government wants to force a price hike on the throat of the common man who is already bearing the brunt of inflation tsunami and high price rise.

Like importing 30,000 MT of Palm Oil every year to raising it to 1, 00,000 MT at a throw away Tariff value, Government would definitely increase the quantum of imports Y-o-Y. Presently, 65% of the coal required for the power plants is procured from the Coal production centres, and Government is hopeful that they would be able to meet 85% of the requirements by the end of the 12 th Plan. Then the mismatch between supply and requirement would be a measly 15%.

                    (Source: eia- US Energy Source Infmn)

But this is just part of the minutes of the Cabinet Committee on Economic Affairs of the government of India. The actual scenario would be, the imports which are in the 35% region may touch 50% or more. But a peculiar matter that need to strike us is that we are at the receving end of the Rupee devaluation which is hovering around Rs 59/dollar. Our Foreign Exchange Reserves is a bare $ 297 billion. The difference between Imports and Exports in the first 2 months was a deficit $ 40 billion (Balance of Payments).(CAD). If manufacturers who have a poor track record of reducing their sale prices, if given the right to fix the rates, will never withdraw. The consumer will have to bear the cost of Rupee fluctuation, cost of road/rail transport from the port to the Power factory, etc. It is not peanuts as our Minister wants us to believe but will be in excess of at least Rs 5-6 per unit.

It is a pity that nobody is scared of this development.

Inaction leads to Economic Paralysis

Economic Wait and Watch policy ruinous

Economy:

Can Indian economy be consistent to hold on to the growth rate of 9.5% it did 5 years ago? Very very doubtful.

       When US announced its qualitative easing, which would deter their bond purchase, Indian markets tumbled, Our markets were sitting on the fence and tumbled by 500 points (2.74%) (BSE) and Nifty shed 166.35 points (2.86%) to send markets reeling. It was an economic tsunami of sorts, waiting to happen, as our financial stalwarts prefer to wait and take no action.

       Our Rupee has slid to nearer to Rs 60/- yesterday and it was a brave effort which saw its devaluation flow to recover to Rs 59.27/dollar. Gold also knocked out the punch and nosedived to Rs 2,550 per gramme to touch Rs 20,400 to a sovereign.

       Our Current a/c deficit is widening due to uneven exports and excessive imports. The entire Foreign Exchange Reserves has nil contribution from exports as it has to consume the import costs, and the surplus in the export-import trade, we have FER which can contain 7 months of import. If there is drawl by FII which is natural, our Reserves get depleted.

       Petroleum costs, add-ons by Oil companies when they have nothing to lose, as the Crude oil is not imported by them, they get it refined at nil taxes, and yet for every paisa increase of the Rupee, they hike the Petroleum prices to compensate what they call under recoveries which fuels inflation in the local market. There is no outstanding increase of oil per barrel, but just because of currency depreciation, oil companies by their monopolies in the market. Of course, the few private players named Reliance would love to hike the prices, because it also considers itself to be a major monopoly.  

       But what is sad is the Economic Advisors to the Government remain bird watchers. Dr Raghuram Rajan, Financial Advisor, is in a state of illusion. He says, we are alert, we have many options. But measured steps will be taken in full measure at the appropriate time. Going further, India’s planning czar, Dr Ahluwaliah, says devaluation of the Rupee is a temporary phenomenon.

       Rupee parity with the dollar was Rs 40/$ (2007), it went steadily up to Rs 60/$(2013), and CAD deficit has been growing alarmingly and FER are depleted.

       Wait and Watch Policy is costing the country dearer; this is no Policy at all. We are inuring the economic growth of the country which will witness a slower growth with Budget deficit going up alarmingly and CAD becoming worse. If we do not leverage advantages now, we will never!

Shiva's thandava causes devastation, destruction in the Himalayan towns

The Himalayan mountain ranges, and places of pilgrimage, mostly Shiva Temples, which were above 10,000 ft above the sea level were witness to furious floods, torrential rains, unbelievable inundation, destruction of life, limb and the very infrastructure built for the development of Uttarakand, Himachal Pradesh and nearby state, throwing caution to the winds. Now, the so called ‘development’ has taken a back street in view of the large catastrophe that engulfed Charm Dharm, Badrinath, Kedarinath, Gangotri, Yammotri and other mountainous cities of pilgrimage by the angry flow of Alakananda, Bhagirathi, downstream Ganga, Yamuna. The temples will take 3 years for opening, claims the Government. Tourism Development will stand still, for 3 years. Development has paid a heavy price for callousness destruction of eco destruction, and ecological destruction, wantonly, knowing full well about the disasters.

The whole of the mountainous holy cities are fuming with the anger of Lord Shiva, who is in a thandava dance. Shiva says, you cannot have money economy, compared to spiritual wealth and paying no heed to mother Alakananda and Bhagirathi, which promoted purity?

Himalayan tsunami was due to Himalayan indifference of men in authority who worried about material pleasures, compared to the spiritual pleasures. Kedarnath, the epicenter of the tragedy had the 8^th century Shiva temple and the Samadhi of Adi Sankara, which remains even though the entire stretch has been covered by slush and mud brought by the river and deposited. Bodies were washed ashore. Thousands of people are reported stranded, large number of them are marooned, many dead, while a few have been rescued.  Some are said to be in ‘pithoragrah (safe location)’A disaster of Himalayan proportion could not be averted and thousands of innocents who paid it with their life cannot be brought back to life by a few proponents of development model who had suicidal economic models. This is the lesson we have to learn from this monumental tragedy.

India has a poor record of anticipation. We react and act only after a calamity has occurred. Why?

Ministry of Environment & Forests’, New Delhi is said to have issued a notification dated Dec 18, 2012, declaring a distance of 130 Km from Gormukh to where Alkanka begins as ‘eco sensitive zone’. This was flagrantly disregarded by state governments who feel that once elected they are accountable to nobody. The assertion of the Government is that vested interests in the name of environmental activists try to impede activities with ulterior motive to rob the people of area from infrastructural development and deal a blow to the tourist interest with ulterior motives. See the tragedy and remember the warning of environmentalists.

The zoning of the river should have been in a manner that loss of life and destruction to building and installations, in the event of flooding, could have been prevented, echoes Union Water Resources authority which had sent many dossiers to the State Government, the covers of the letters which had remained unopened.

When Science has grown much, why was apparatus which would forecast, inundation forecasting, through digital elevation maps and bathymetric surveys do be done in the flood vulnerable areas, which had planned funds in the 12^th Five Year Plan was not spend and sophisticated materials purchased and professionals put in place. What is priority for the Government? Is it the well being of the people sans people themselves? We need to have flood forecasting network linked to rain forecasting, if we need to make little headway in saving people in anticipation of destruction. If we cannot take people to safer surroundings even in the case of natural calamities, what will we do, if something happen to our nuclear reactors?(a fear apparently expressed by the people of TN over a nuclear power plant?)

The meteorological department had warned the centre and the states about the impending rain, cloud bursting, and devastation around the Himalayan areas, yet why no action of evacuation and halting pilgrimage to embark yatras not done? The Comptroller and Auditor General of India had warned the state government about the improper construction of infrastructural projects without putting in a mechanism of caution. The Report was simply ignored as partisan.

After a grave lesson learnt from the present tragedy of immeasurable gravity, the Government should come out with a safe mechanism of history not repeating itself.

Preparation for a catastrophe by putting in place warning systems before the occurrence;

Put in place technology, which will not cause callous indifference?

Study the impacts of devastation, even though to some extent such impacts are inescapable in a difficult mountainous terrain.

How does Carbon emissions, global warming affect these events which may become more frequent, aggressive, petulant.

Let us not see phantasmagoria  recover calamity costs from those who were involved in developmental works for the loss of limb and life caused by their carelessness.

Himalayan ecosystem have experienced faster rates of warning in the last century compared to European Alps and other mountain ranges. Land use changes will definitely hurt ecology. Deforestation cover was one of the importat causes for the devastation of the rivers Bhagirathy. Vegetation covers arrests the fury of river spree during rains. The areas need to go in forestation and the river basin and land cover through which river flows need to be protected from soil erosion. Coir Geotextiles, which are used in India for landscaping could be used effectively as it is damn cheap. The Coir pith can be used elaborately as it has the capacity to absorb water and retain 45% with it, which will provide improvement in ground water for vegetation. These people who say that hydro power projects are the only answer should take a leap out of the countries in the Pacific region who beget electricity from Coconut shells. India is the country producing maximum coconuts in a year. They are not even aware of the various alternate modes of energies that can produce power and calls ecologistical destruction as the only method to create development. Development economists should look at alternatives.

“These mountain rivers are like daughters, you never know, how quickly they grow up”..

“The present Himalayan disaster is triggered by natural forces but the catastrophe is

manmade”.

“Floods are the result of indifference to the human mentality”.

Some of these quotes are most relevant in the present context. 

Justice delivery to hapless gender

Judge clarifies the Law for gender justice.

Justice C S Karnan’s judgment (Judge of the Madras High Court) was indeed praiseworthy and comes at a time when gender justice was conspicuous by its absence. The male dominated society always frowned on the female with superiority. The judge was careful in the use of words, 21 year old ‘bachelor’ and 18 year or more ‘spinster’ had pre-marital sex with intention to worry and subsequent to this, the man deserts the woman, the victim woman can approach for criminal filing of proceedings in a court having criminal jurisdiction, but also can avail civil remedy, by substantiating her claims in a legal manner.

The Judge has clearly used the word, ‘Bachelor’ which has the dictionary meaning of ‘unmarried’. In the word context, ‘Bachelor has connotation in the case of a married man divorced/widowed, and when in a state that there is no wife in the legal terms, he is described as the person who can be punished in the judgment. A divorced/widowed woman is called divorcee or widower, hence spinster means, one who has never married.

       This is an excellent concept, persons who came under the provisions of benefit under the judgment or the wrong doer is clearly identified in the judgment.

       Kudos to the judge for opening up new vistas in the judicial made justice operational.

       The Judge had candidly admitted the law to proceed criminally against the wrong doer male on a complaint by the aggrieved woman, and the courts taking cognizance of the case can award exemplary punishment. But there is no provision in law, which enables the woman to remove her social stigma, nor any enabling provision for compensation. Though there is no provision, the judge recalls in this erudite Judgment that the High court is the apex court of the state and Constitutional authority which can impart natural justice, gender justice and genuine justice. The Court has, therefore, intervened, to right a wrong by awarding her civil remedy by treating the contract of entering into a marriage by two connected parties having social relevance, and having pre-marital sex with the premise that before long they would become man and wife.

       But the provision of ‘marriage’, which has a distinct law in force, and the Indian Penal Code and Criminal Procedure Code, and Code of Civil procedure, under which any married women is given alimony, etc, do not support the Judge’s judgement, however, worthy it may be.  Solemn ties of marriage as well as specific contract for marriage in the case of pre-marital sex are one and the same in the eyes of Law. Why is the  legislature in  India, feel shy of changing the provisions of Cr.PC, Civil Procedure Code, IPC, etc to incorporate these provisions so that legislature passed laws can become operational, while judge espousing a law can at best remain a law, only till it is challenged and a divisional bench quashes it. The famous example for this was the sensational Sarita Vs Venkatasubbiah case by the Andhra Pradesh High Court against the orders of the Cuddapha Court. This Case brings out to the fore, the inadequacies of the Hindu Marriage Act of 1955.

The case is listed in the citation AIR 1983 AP 356, is a judgment by Hon’ble Justice P Choudhary most poignant. One Venkitasubbah, married Sarita, a young grown up girl at Tirupathi on 13-12-1975. Thereafter, she resided with him who had agricultural gardens in Cuddapha for about 6 months. Later she left for Madras, stayed with her parents. Later she became very famous and most wanted heroine, made Crores of Rupees. At this stage, Venkatasubbiah moved an application under Sec 9 of the Hindu Marriage Act for restoration of conjugal rights by filing a case at Cuddapha, Andhra.  

The Judge of the Cuddapha after protracted argument decreed upholding Sarita to pay heed to Venkatasubbiah’s petition to restore his conjugal rights. Aggrieved by this, she filed an appeal in the Hon’ble High Court, arguing two important points. She argued that Cuddapha Court did not have jurisdiction because Sec 19 talked about permanent residence or couple resided last, where they married, or where there was irrevocable separation to invoke jurisdiction. She said she had no residence in Cuddapha but resided which is not the terminology used by the Section in the Hindu Marriage Act, and Madras was the place she and he co-habited, and hence Cuddaph magistrate was wrong jurisdictional aspect. Her second point went deeper, pointing at the validity of Sec 9 of the Hindu Marriage Act which was in direct conflict with Article 14, 19, 21 of the Indian Constitution. Conjugal rights are in deferment of right to liberty, right to life itself, human dignity and decency. Order 21 Rule 32 of CPC and sub para 2 and 3 contemplated that any judgment which permits restoration of conjugal rights, if failed to be performed, then, the person committing the crime can be sent to prison, property can be  attached and so on. Order 21, Rules 32 and 33 enforces financial sanctions. In this respect, when drawing up the Hindu Marriage Act of 1955, the Conjugal Rights enforced by Ecclesial law of England which was enforced in India prior to independence were retained. However, it should be remembered that England under Sec 20 of Matrimonial Proceedings and property Act of 1970 removed the right to claim conjugal rights. The learned Judge, therefore, held that Secrtion 9 of the Act was in direct violation under items 5 of the list III and VII Schedules of the Indian Constitution as  it infringed the Chapter III right embodied in the Constitution and offended, the inviolability of the body and the mind subjected to the decree and offends dignity  of a human-being. The judge claimed that it was a parody that males moved courts asking for restitution of conjugal rights, while no woman had ever filed a petition. 

We have to reason with this judgment and compare it with the averments of Justice C S Karnan’s well diagnosed judgment.

However, when a Judge delivers his judgment in the precincts of the Court, it becomes Law unless challenged at a higher forum. However, a Judge who had delivered judge releases a statement for public consumption justifying his reasons and conclusions by which he delivered the judgment was unnecessary. The Judge is answerable to no one for his judgment except his allegiance to the constitution. This statement would cause unnecessary public debate. It was not necessary.

Kudos to the Judge who gave gender its justice. Women should rejoice. People like Sonia Gandhi and Sushma Swaraj, Jayalalitha, Mamata, should make common cause to make the Government of India change the outdated anarchic clauses of the Cr PC,Cvl PC,IPC, and/or other Acts.

Assembly or Parliament, temple of democracy

Legislatures are Temples of Democracy

I feel dumbstruck when the events of a last few days in the sphere of our democratic institutions we see, not debates, arguments, fierce oratory, but pandemonium. We see, the Parliament of India rocked by interruptions, disorders, stalemates, which enforces the theory the ‘Devils quoting the scriptures’.  Or we in for autocracy, might is right, or for fighting wars in the four walls of our parliamentary democracy.

We have some of the best Parliamentarians, both in the ruling party, Opposition, and in Politics. Spread across all parties. Our founding fathers had immense nationalism, sentiments, patriotism. There may be different views, manifestation of different thinking, but in true spirit, we have to respect the institutions if we want respect for ourselves.

We have a moral responsibility because we have taken an oath. An oath to preserve the integrity of our cherished institutions. If we do not respect our elders, how can we command respect from our younger ones. Is not running of Parliament or state legislations, involve the exchequer. It is based on people’s faith, the prescription of our Policy as well suited for their well fare, brought us to win in our constituency. Can our action or inaction put them to trouble? Is discipline, not the very essence of our institutions? Should we not create honour by precept and practice? Can we expect our forces to be undisciplined? Can we expect the Police force to be awesome?

In the history of Kerala’s parliamentary democracy, which even saw the first Communist government elected on adult franchise, getting power to rule the state. The faith repository of the most enlightened literate people, who gave power to a Communist Government under veteran E M Shankara Namboodiripad. This is a Guiness Book of World Record entry. 2 years later, another Communist government came to power in Cuba. We had formidable leaders who could through their gift of the gab, oratory, by the might of arguments, pull down governments. Not anymore. The legislators have lost the respect of the people. For, they believe in street fight, proving that might is right. Rushing to the speaker’s podium, squatting in front of the seats. Using placards, shouting slogans, degrading the supremacy of the Speaker by simultaneously creating impediments to the smooth conduct of the house. This is most undemocratic.  

Political leaders must engage in meaningful debates, arguments, express their opinions without fear or favour, and challenge the ruling party or opposition by a string of arguments, characteristic evidence, and should aim at expressing their democratic credentials through the instruments that is provided by the Assembly rules to take head on the ruling party or opposition, as the case may be. But today’s events do not bestow confidence on the well being of democracy, the ruling party or the opposition both throwing decorum to the winds. In 2 minutes all major financial transactions were approved. There may be merit in financial proposals. There might not be merit. Some may be successful projects while some others may not be viable. All these money approvals should be debated, discussed thread bare and then passed. If they are passed in a casual manner, then what is at stake is Crores of Rupees.

Whole parliament sessions have been washed out over lung uproar. Is it healthy democracy? The leaders and the political parties must ponder over this. Anna Hazare advocated the ‘Right to Recall a Representative’ which did not find agreement with the Election Commission nor the Political parties. How can people express their resentment?

Do we need silver lining when we like Gold?

Silver lining gave dark clouds and no rain?

Rupee on the downhill:

When the Banker’s bank in India assiduously avoided a cut in its CRR rates, playing over caution, Rupee made bold to venture into new lows (falling around 1.5% against the dollar) and plummeting to 58.77/78 against the Dollar. Another danger await us: tinkering with US monetary stimulus by Federal Reserve, would cascade into further erosion in dollar value. Appreciating Yen has further weakened Rupees strength. Rupee also might become q victim of carry trade unwind, as Rupee has become a pain in the neck for investors. It is not surprising that Rs 750 Cr moved out of India in the last two days.

Though there were inflows of around $ 3.6 billion during FY 2013-14, the pull out by FII was $ 3.5 billion. This has put tremendous pressure of the Rupee.  The cascading effect was dampening of sentiment in BSE, NIFTY.

Current a/c deficit:

The experts argue that the widening was due to concerns of high Current A/c deficit, widening trade deficit, which has already impacted the Rupee. India’s exports were $ 48.67 billion against India’s import of US $ 86.6 billlion.India’s reckless import of Crude Oil ($15.6 billion), non crude oil ($ 29.62 billion). This has created trade deficit. For the month of May alone, the deficit was $ 20.1 billion while it was $ 17.8 billion in April, 2013. The gap was $ 16.9 billion in the corresponding month of the previous year. Input imports, and machinery import has come down considerably as export units are not working to 60% of their capacities leaving an idle capacity of more than 40%.

Son-in-law status for Gold import:

Government treated Gem and Jewellery industry as a key growth oriented industry. The votaries of Gold import saw a gold lining. But it remained only as clouds fleeting away because of the strong wind!  This has resulted in massive availability of Gold with prices running above Rs 20,000/a sovereign. Gold import stood at a high of 89.7% to import figure of $ 8.4 billion. Many firms in the SEZ were importing gold and there are many instances when the gold imported instead of export found itself in the DTA. With abundant supply, and Rupee reeling and prices of land falling correspondingly, Gold prices rose steadily; this did not hurt the gold shops, as there were enough buyers as they felt Gold was the best asset to appreciate.  Purchasers thought we need to preserve wealth. Gold was the best option because of lavish appreciation. This logic was spread by the Gold merchants and government did nothing to dispel the impression.

The import of gold drained the Foreign Exchange Reserves. Only belatedly, the Government has woken from its slumber to declare that Gold imported should have a minimum 3% value addition and 5% value addition in gold and precious stone studded jewellery.

Reckless import; no balancing act:

Thanks to our policy of importing crude edible oil valued Rs 65,000 Cr, we have helped the South East Asian economies to substantially increase their exports. They have become large scale proucers of edible oil, and their economic growth of 40% comes from this oil sales. When the GoI distributes imported Palm oil through the Public distribution system by offering 25% subsidy to benefit 1 million stakeholders, are we not helping Philippines, Malaysia, Indonesia, god sent opportunity to revive their economic growth while putting down India’s domestic India, which receives rather ‘nil’ support from the Planning Commission to increase output of edible seed growth, enhance the area of edible sees sowing, getting better productivity.

Planning Rethinking:

 From 15% in the First Plan, we have descended to provide 5.4% in the 12^th Plan for the entire agriculture. The efficiency in the rationalizing of such actions need to be put to test by asking s simple question- have we forgot our foundations? The bench mark of our growth will lie in giving excessive importance to agriculture. We talk about Food Security, while we destroy the foundation of Agriculture that would provide Food. Farmers are as important as consumers, because without the farm output consumption will reach a zero end.