Major Indian States Research Articles

Employment Trends in India

This article explores the trends in labour force, employment and unemployment from 2000 to 2012 using NSSO data in major Indian states. Most of the states experienced acceleration in employment growth when economic growth was slow during the first quinquennium of the twenty-first century. These trends have reversed during the second quinquennium. The deceleration in growth of employment was driven mainly by decline in female employment in rural areas in almost all the states, and the withdrawal from labour market could not be fully explained in terms of its correlates. This article highlights the need to improve the data on employment and increase its frequency, and also suggests the measures. JEL: J21

Influence of Pharmacist on Consumer’s Buying of Pharmaceutical Product with Specific Preference to Gujarat and Maharashtra

To cope up with the competition among the existing pharmaceutical industries and new entrance, there is always a challenge for the pharmaceutical industries to innovate for new marketing strategies which would help the industries to survive in the competitive market. This paper provides perceptions of the consumer regarding the purchase of the pharmaceutical products. Consumer data are collected from two major states of India, Gujarat and Maharashtra and 516 respondent’s data were collected who provided their responses to the questionnaire designed for this study. The data collected are of the consumer’s preception or action steps over the possible scenarios while there is unavailability of the drug or the prescribed drug is costly. Descriptive statistics were used to analyse data from both groups to compare perceptions of the consumers. The objective was to evaluate the perspective of consumers. Results from analysis shows that there is positive impact of the Pharmacist on the purchasing decision of the consumers.

Debt Sustainability: Empirical Evidence from Indian States

This study utilizes the Bohn framework for panel data and a penalized spline technique for testing the sustainability of public debt in 20 major Indian states for the period 2003–04 to 2014–15. It is found that in 14 out of 20 states, the primary surplus reacts positively to public debt, indicating debt sustainability in these states. Moreover, it is interesting to note that the reaction coefficients are not constant but varies with time in all the states. in six states, the debt is unsustainable which suggests for policy intervention in them. Our analysis also indicates that the net borrowings in these six states exceed their FRBM limits, and which are partially used for non-investment purposes. Therefore, they need to strictly adhere to debt-deficit targets. It is our hope that these results will be useful to policymakers and other stakeholders in such a way that their strategies will improve the debt position of these states and make them sustainable.

The telecommunications divide among Indian states

Using data for 16 major states in India from 2001 to 2015, this paper examines the patterns, distribution dynamics, and the drivers of telecommunications (telecom) services across different states. We apply both parametric and nonparametric econometric techniques to study the distribution dynamics of telecom services across the states. Further, we employ the generalised method of moment (GMM) to examine the determinants of telecommunications services in India. Our results indicate that the interstate gap in telecommunications services has been declining over time and there is a tendency for convergence in teledensity towards the national average. The regression analysis suggests that per capita income and network externality are significant determinants of teledensity across states in India. Furthermore, literacy rate and relative size of the service sector are independently significant predictors of teledensity. If we consider rural and urban areas separately, there are some important differences. For example, while the interstate gaps in telecom services in rural areas seem to have declined, there is little evidence of such a tendency in urban areas. However, the regression results with respect to the importance of per capita income and network externality for telecom services are robust to the rural-urban divide and to the inclusion of additional explanatory variables. The findings of this study have important policy implications.

Sustainable Debt Policies of Indian State Governments

This study analyses the public debt sustainability issue of 20 major Indian states using the Bohn framework for panel data from 2005–2006 to 2014–2015. It employs regular panel data estimation procedures and the penalized spline (p-spline) technique. The results indicate that the primary balance of state governments responds positively to high public debt, so debt policies are successful in sustaining the debt situation of Indian states as a whole. However, at the individual level, debt is sustainable only in 12 states; in 8 states, debt is unsustainable and so these states require corrective action. These findings may be useful to policymakers and other stakeholders to formulate appropriate strategies to improve the debt situation of Indian states. JEL Classification: E62, H63, H72, H740

Open and Distance Education in India

The goal of this article is to look into the effectiveness of ODL on the level of economic development across fifteen major states in India, viz., Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal by constructing an ODL Effectiveness Index (ODLEI). The variables considered here are — 1) number of ODL institutes in the state concerned, 2) number of students enrolled in such institutes, 3) logarithmic value of per-capita GSDP and 4) state-wise literacy rates. The index construction method employs Principal Component Analysis (PCA) given the high-degree of multicollinearity among the variables. Comparison of the value of ODLEI in 2015 with the value of ODLEI in 2010 is also something that this article talks about. Also, using a simple regression model, this article attempts to underline the nexus between growth, measured by means of change in the GDP growth with the level of enrolment in distance education in India.

Hindu–Muslim Fertility Differentials in India: Indirect Estimation at the District Level from Census 2011

This article estimates the total fertility rate (TFR) for the overall population in major Indian states by employing Arriaga variation of the P/F ratio method and the relational Gompertz model. The article uses the 2011 Census data on average parity and the current fertility schedule. Estimation of TFRs at the state level by employing Arriaga variation of the P/F ratio method strongly corresponds with Sample Registration System (SRS) compared to those derived from the relational Gompertz model. Thus, Arriaga variation of the P/F ratio method was retained to estimate the Hindu–Muslim fertility differentials for 618 districts in India from all states except Jammu and Kashmir. Comparing the TFRs obtained from the analyses with indirect estimates of TFRs from the 2001 Census, the analysis reveals that the overall fertility transition in India has been steady during the last decade. Fertility transition has been underway for both Hindus and Muslims, at a varying pace, when compared to the state-level indirect estimates of the 2001 Census. Though the overall convergence of fertility between Hindus and Muslims has been underway, significant regional variations persist.

What explains regional imbalances in public infrastructure expenditure? Evidence from Indian states.

Literature on regional growth suggests that divergences in infrastructure is a major factor behind the wide and persistent imbalances in regional growth in India. Using a state infrastructure expenditure function, possible factors that determine infrastructure expenditure and its role in the regional imbalance in infrastructure creation across 14 major Indian states are examined in the present paper. The study indicates that such factors as lagged expenditure, resource mobilization and per capita income may cause varying amounts of infrastructure expenditure across states. It also indicates that spending by the infrastructure-deficit states, political stability and positive spatial dependence in infrastructure expenditure have a balancing effect on infrastructure creation across regions. Those results suggest the need to do the following: (a) harness the favourable factors influencing public expenditure that include improving the financial capacity of the infrastructure-deficit states; (b) strengthen the positive spatial dependence among states through the creation of interstate infrastructure networks, such as railways and national highways; and (c) enable a conducive investment climate, which could boost competition among states for improved infrastructure creation.

Performance Analysis of Karnataka Power Sector in India in the Context of Power Sector Reforms

With the enactment of Karnataka Electricity Reform Act (KERA), 1999, Karnataka power utilities underwent major restructuring. The objective of the paper is to assess the Karnataka power sector performance in the context of reforms, using select technical and financial indicators. A Power Sector Performance Index (PPI) is computed to capture the overall performance. Some indicators, like energy and peak deficits, per capita electricity consumption, have shown improvement after reform, nonetheless, they still lag behind other major Indian states. The installed capacity increased fairly after reform, however, the capacity utilisation rate declined in the post-reform period. On the positive note, the transmission and distribution (T&D) loss in Karnataka reduced tremendously since 1999 as compared to other major states. Average revenue realisation rate rose after reform, however, the realisation rate varies widely across consumer categories, due to cross-subsidization by few categories. Overall, the PPI value increased from 1998–99 to 2012–13 indicating better performance after reform. The ranking improved from 8th to 3th position, implying higher progress over time vis-a-vis other states as well. There is, however, scope for further improvement. Future policies should focus on toning up poor capacity utilisation rate, and reducing price differential and power subsidy burden of the government.

Interstate disparity in the performance of controlling crime against women in India: efficiency estimate across states

The present study attempts to analyse the performance of controlling the total crime against women of 27 major states in India, considering two decadal time periods, namely, 2001 and 2011, by comparing the crime control efficiency of these states. The estimation of the technical efficiency across states and overtimes is performed by application of the stochastic production frontier techniques on decadal panel data. Hausman test ensures that random effects model is appropriate for panel regression analysing. The results show that not all states with better crime control indicators have efficient control over crime against women. The results also reveal that poor women are more vulnerable to crime, whereas political empowerment enables women to avoid crime. Again, higher female literacy rate gives the voice to the women to protest any crime against her. Finally, the study concludes that investment for maintaining the law and order alone would not result in better control of crime against women. Efficient management of the investment is also required.

Measuring Electoral Competitiveness: With Application to the Indian States

We consider alternative methods of measuring the competitiveness of a majoritarian electoral system in the context of an analysis of Indian State elections. Our analysis highlights a number of weaknesses in the construction and interpretation of commonly used measures such as the effective number of parties, the first versus second place vote margin and safe seats, while presenting these and their proposed alternatives for 14 major Indian states from 1952 to 2009. The alternative indexes we present are based in part on ideas that are longstanding in the literature but have not been fully adopted within the Indian context. These indexes incorporate vote volatility, allow for multi-party competition at the constituency level, and adjust for asymmetry among parties of safe seats in the legislature. We argue that these newly computed indexes capture distinct but related dimensions of electoral competition better than do the extant commonly used measures. The analysis of these indexes is then extended to consider the role of caste, class, regionalism and level of development to reveal interesting patterns of commonality and difference in electoral competition across the states.

Regional income inequalities and public investments in rural India

Regional inequalities in income levels in the agricultural sector have increased over time, but not as sharply as in the non-agricultural sectors. This article examines the effect of public investments on agricultural income inequalities across 17 major Indian states for the period 1981/82 to 2013/14 and for the pre-and post-liberalisation periods. The impact of conventional inputs and various types of public investments on income inequality is found to be significant but spending on education and health have larger adverse effects compared with spending on roads, energy, and irrigation over time. Land, labour, and private investment in irrigation also have only a modest impact. Among various categories of public investments contributing to regional income inequality, the contribution of education is estimated to be 32.2% nationally, and 50.8%, 38.5%, and 29.7%, respectively, in the low, middle, and high per capita income states. Results suggest that public investments should target roads, energy, irrigation, and agricultural research and development in the less-developed, more agriculture-dependent states to improve regional income equality, increase agricultural productivity, and alleviate rural poverty. The marginal returns to each of these investments, in terms of reducing income inequality, are generally higher in the low-income, agriculture-dominant states, implying the potential benefit of a location-specific expenditure policy.

Convergence and Regional Disparities across Major Indian States

Convergence and Regional Disparities across Major Indian States

Channels of financial sector development and rural-urban consumption inequality in India

Purpose The purpose of this paper is to examine the direct (microcredit), medium-direct (bank credit), and indirect (through economic growth) effect of financial sector development (FSD) on rural-urban consumption inequality (RUCI) in India using state-wise annual data from 1999-2000 to 2011-2012. Design/methodology/approach A panel data analysis for a sample of 15 major Indian states using the generalized method of moments estimators provides an empirical evidence for the direct (microcredit), medium-direct (bank credit), and indirect (economic growth) effect of FSD on RUCI. Findings FSD is pro-urban in India resulting in a declining rural-urban consumption ratio (RUCR) and increasing RUCI. The negative effect of FSD on RUCR is greatest through the medium-direct channel followed by the indirect and direct channels. Research limitations/implications The study questions the social banking initiatives of the government in rural areas where more than 80 percent of the poor reside. There is a need for restructuring financial inclusion programs with a shift in their focus on rural areas and an improved mechanism to target the poor. Originality/value The paper proposes that formal financial services by banks are primarily availed by non-poor and urban population and hence acts as a medium-direct channel whereas the semi-formal financial services by microfinance institutions specifically target the rural poor and act as a direct channel to affect the poor. It is the first ever study to use state-wise data on microcredit disbursed under Self-help Group Bank Linkage Program to assess the direct impact of FSD on RUCI.

Economic growth, public expenditure on health and IMR in India

Purpose The purpose of this paper is to employ a two-step approach to investigate the bi-directional causal linkage between: economic growth (measured by GDP) and public expenditure on health; public expenditure on health and infant mortality rate (IMR); and economic growth and IMR in the Indian context. Design/methodology/approach The present study uses econometric analysis, namely, panel cointegration and Granger causality on 20-year panel data on 16 major Indian states to investigate the causality. Findings The results suggest GDP to Granger cause public expenditure on health both in the short run and in the long run, but public expenditure on health to Granger cause GDP only in the long run. Further, public expenditure on health and economic growth were found to Granger cause IMR in the long run. However, the reverse linkage from IMR to public expenditure on health and/or economic growth was not significant. Research limitations/implications The present study provides support to the existing literature on the effects of economic growth on health expenditure and health outcomes but also raises a question on the time required to realize the same. Practical implications The findings have implications for policy makers on the time frame and application of health expenditure to achieve better results. Originality/value The present study is one of the first to test the tripartite linkage between economic growth, public health expenditure and health outcomes at a state-level analysis.

Media Lab Asia: Renovating Business Model for Underserved

Media Lab Asia (MLA) has been incepted in 2001 with the collaboration of MIT Media Lab and Department of Electronics & Information Technology (DEITY), Government of India. It is working on the paradigm of collaborative research from the lab to land in developing and operationalizing technologies to bridge the gap through educating, equipping and empowering common man. MLA is working in four sectors: livelihood, healthcare, empowerment of the disabled and education. MLA is successful in collaborating with Research & Development (R&D) organizations, institutions in Government, Non-Governmental Organizations (NGOs), academia and industry. A long list of collaborators of MLA includes 59 partner agencies. MLA role, however, had confined to provide funding to the partner agencies. The collaborative organization develops product, tests and launches the projects. The reach of the project touches major states in India. eGalla, Chic, mDhanwanthari, and Sehat-Saathi are some of the projects developed by MLA and collaborators. eGalla is a retail management software, and Chic is developed to simplify the traditional craft for livelihood generation. mDhanwanthari and Sehat-Saathi are based on healthcare to rural communities. MLA has developed 75 projects since its inception. The projects have reached the beneficiary but lack in scale and commercialization. The parameter of success for MLA includes the potential for commercialization of the products or projects and self-sustaining mechanism of the impact of these products and projects. There are not many obligations for commercial success being a Section 25 company; however, a self-sustaining mechanism was critical. DEITY, the parent organization, has sought external support to develop a new business model to overcome the limitation.

The dynamics of rural non-farm employment in India

This paper analyzes the dynamics of the rural non-farm employment in the fifteen major states of India by using panel data analysis for the period 1972–2010. The analysis indicates that there are significant gender differences in the factors affecting the level and the growth of rural non-farm employment. The level of urbanization, the rural literacy rate and the rural unemployment rate have a significant positive effect on the incidence of non-farm employment for male workers. For female workers, agricultural productivity and the incidence of rural poverty have a significant positive effect. There is evidence of convergence in the incidence of rural non-farm employment for both male and female workers, indicating that states with initially low incidence of rural non-farm employment experienced a higher growth rate in the rural non-farm employment than states with initially high incidence.

Occupational exposure to unburnt tobacco and potential risk of toxic optic neuropathy: A cross-sectional study among beedi rollers in selected rural areas of coastal Karnataka, India.

BackgroundBeedi also known as poor man’s cigarette is manufactured in almost all major states of India. Beedi workers are exposed to various health risks. There is an increased risk of systemic absorption of tobacco through skin and mucous membrane. The optic nerve is susceptible to damage from several toxic substances including tobacco. This group of disorders is known as toxic optic neuropathy (TON). The association of TON with occupational exposure to unburnt tobacco in beedi rollers has not been explored.ObjectivesAmong the beedi rollers in Mangaluru and Bantwal talukas of Dakshina Kannada District, Karnataka, India: to assess the magnitude of potential TON utilizing colour vision and contrast sensitivity as screening tools and to identify the demographic, biological and occupational factors associated with potential TON.MethodsA community-based cross-sectional study was conducted from April-Sept 2016 in Mangaluru and Bantwal talukas, of Dakshina Kannada district, Karnataka. Beedi rollers from twelve villages (six from each taluka) were included. In each of the selected villages, the investigators identified beedi collection centres and all the eligible beedi rollers were included in the study till the required number of beedi rollers for that village was achieved. Participants were screened at the study site for visual acuity, colour vision and contrast sensitivity and those with abnormal colour and contrast sensitivity in the presence of good visual acuity were considered to have potential TON.ResultsA total of 377 beedi rollers were approached; of which 365 consented to take part in the study (response rate: 96.81%). Women constituted the majority of the participants (n = 338, 92.6%). Based on the screening criteria, the prevalence of potential TON was 17.5% (n = 64, 95% CI: 13.5–21.9). On multiple logistic regression analysis, duration of beedi rolling (Adj OR: 1.061; 95% CI 1.015–1.109, p = 0.009), advancing age (Adj OR: 1.096; 95% CI 1.058–1.136, p<0.001) and presence of diabetes (Adj OR: 6.315; 95% CI 1.4572–27.376, p = 0.014) were independent correlates of potential TON.ConclusionIn the present study, almost one out of six beedi rollers displayed clinical signs of potential TON. Increased duration of beedi rolling, advancing age and presence of diabetes were the independent correlates of potential TON. However, with this cross-sectional study it is not possible to conclude if these factors play a role individually or collectively or are a serendipitous association, for which large scale analytical studies are required.

What Works Best for the Poor in Rural India

Financial sector development serves poor directly through poverty-lending approach or financial systems approach. Robinson (2001) questions the appropriateness of poverty-lending approach for the extremely poor and supports the financial systems approach for providing a poverty alleviation toolbox to serve the poor at various levels. The present study attempts to assess the effectiveness of the two lending approaches and comments on the appropriateness of the same for the poor and the poorest of the poor in rural India using state-wise annual data from 1999–2000 to 2011–2012. We conduct a panel data analysis for a sample of 15 major Indian states and provide an empirical evidence for the effect of various poverty alleviation tools on the poor and the poorest of the poor in rural India. The study partially supports the use of tools suggested by Robinson.

Trends in inequality in length of life in India: a decomposition analysis by age and causes of death

BackgroundStudies dealing with trends in inequality in length of life in India are rare. Studies documenting the contribution of age and causes of death to the inequality in length of life are more limited.ObjectiveThe study aims to examine the trends in inequality in length of life in India and 15 major states of India and to decompose the inequality in length of life into the contributions of age and causes of death.MethodWe use life table Gini coefficient (G0) to measure the inequality in length of life. We use the formulae developed by Shkolnikov, Andreev, and Begun (DR 8(11):305–358, 2003) to decompose the differences between Gini coefficients by age and cause of death.ResultThe G0 for men has declined from 0.32 in 1981 to 0.19 in 2011. For women, G0 has decreased from 0.31 in 1981 to 0.22 in 2011. Mortality decline in the age group 0–1 year has contributed most to the decrease in G0. In contrast, mortality decline in 60+ has tended to increase the G0. The state-wide variations in the age-specific contributions to decrease in G0 were stark. The contribution of noncommunicable diseases to the male-female gap in G0 has increased between 1990 and 2010. Injuries at ages from 20 to 39 years also contributed to the male-female difference in G0 in 2010.ConclusionFuture studies must analyze inequality in life expectancy for assessing the performance of societies regarding length of life.ContributionThis is the first study that provides compelling evidence on inequality in length of life in India and its major states.