Introduction
Consequently, the First Five Year Plan presented an history of the land, H2O, mineral and energy resources of the state on the footing of information so available. It drew attending to the chief jobs in each field and put out programmes for farther studies and probes. It besides offered suggestions for beef uping the administrations responsible for these studies, supplying them with forces and equipment. and spread outing programmes of preparation.
Over the past few old ages administrations covering with the study and use of natural resources, such as the Indian Council of Agri- cultural Research, the Central Water and Power Commission, Central Board of Irrigation and Power, Geological Survey of India, Oil and Natural Gas Commission, Indian Bureau of Mines, Survey of India, Forest Research Institute Atomic Energy Commission, and the Council of Scientific and Industrial Research and its National Laboratories have been greatly expanded and have undertaken a series of new studies and probes. These studies have resulted in a fuller appraisal of the state 's natural resources conveying to illume the spreads in informa- tion associating to these resources as besides their lacks in rela- tion to the state 's hereafter demands,
2. The aim of planning is to raise the criterion of life of the people as a whole. The attainment of this nonsubjective involves the development on scientific lines of the state 's natural and human resources. Expanded demand for natural resources and stuffs has led to technological developments which have in portion overcome limita- tions and therefore increased the supply of resources. The dynamic forces at work in making displacements in the demand for and supply or natural resources necessitate their uninterrupted survey every bit good as reformulation of policies associating to them. Natural resources must be looked at in a co-ordinated mode and their probe and use planned for long-run demands. The extent to which resources have been studied and possibilities established in front of demands is an of import factor finding the rate at which the economic system can turn.
3. With the preparation of the Third Five Year Plan, the phase has reached when, as a necessary status of well-conceived long-run programs, a comprehensive position demands to be taken of the extent and quali- ty of the information available in regard of the state 's chief natural resources. The principal spreads which exist, the studies required in this connexion, and the farther stairss needed in relation to specific long scope aims, such as irrigation, power, steel, coal, oil and minerals, land usage and forest resources have to be iden- tified. As stated earlier, over the following 15 old ages, population may increase by about 187 million. Increase in labour force is reckoned at approximately 70 million, of whom some two-thirds must be absorbed outside agribusiness. It becomes, hence, a affair of the greatest impor- tance that a high rate of economic 'growth is achieved and sustained during this period. Her natural resources give India a big poten- tial for agricultural and industrial production, and their rapid development is an indispensable status for the accomplishment over the following two or three Plan periods, of a autonomous and self-sustained economic system which can supply to the mass of the people continually lifting life criterions and chances for paid employment. The long- term ends in national and per capita incomes and the development of agribusiness, irrigation and power, and the probationary marks sug- gested earlier for industries like steel, aluminum, coat, oil refin- ing, fertilizers, cement and others can merely be achieved in clip if the nature and extent of the natural resources of the state and the indispensable demands refering their development are assessed and the necessary stairss taken good in progress. For balanced development, it is every bit necessary to measure handinesss, demands and possibilities in relation to each of the chief parts within the state.
4. In the Chapters on irrigation and power, woods, indus- attempts, minerals and others, an effort has been made to bespeak the chief waies in which farther attempts are needed to determine more to the full the resources of the state and the steps required for their more rapid development. The object of the present Chapter is to put the job of measuring and developing
96 THIRD FIVE Year Plan
natural resources in the context of the Third and subsequent Plans and to explicate briefly some of the deductions in this regard of the growing of population and of intensive and largescale industialisation.
A unit for Natural Resources has been late set up in the Planning Commission for analyzing jobs associating to the appraisal and development of natural resources and helping the assorted agen- cies engaged in the study and probe of these resources in associating up their work closely with the demands of the quickly turning economic system, and by and large, assisting in procuring a common attack in assorted related Fieldss. This unit will be strengthened as its work develops. In coaction with other administrations, it is hoped to set up for co-ordinated surveies of natural resources on a go oning footing, to stipulate spreads in the bing information, peculiarly from the facet of long-run development, and to propose suited policies and steps for giving consequence to them. Against this background, it is proposed briefly to reexamine recent developments and to bespeak the jobs that lie in front in relation to the development of the land, H2O, mineral, energy and other resources of the state.
Two
LAND RESOURCES
5. The most of import natural resource of the state is land, which is the base for agricultural production. While population grows, the land surface is fixed, and of this lone a certain propor- tion is available for cultivation. Several facets of the job demand to be studied. Through irrigation and other steps of agricul- tural development, the productiveness of land can be well in- creased. It is necessary to determine the extent to which land now lying waste can go available for cultivation. Increasing popula- tion besides means backdown of countries now under farms for edifice houses. Development of communications such as roads, railroads, and air passages may take up fertile land. Owing to rapid urbanization and growing of big metropoliss land is needed for Parkss and unfastened infinites. Irrigation dike may submerse fertile countries. Industrial workss and other constitutions besides require significant countries. In all these developments wherever fertile land can be saved attempts should be made to make so. This indicates the demand for a comprehensive stock list of land and for greater polish in land categorization and uninterrupted attending to land usage.
6. Land utilisation.-The entire geographical country of India is about 806 million estates, of which describing country is about 721 million estates and net country sown is about 318 million estates. The wide fea- tures of the present form of land use and that anticipated by the terminal of the Third Plan are set out in the Table below:
Table 1: Land use in 1965-66 ( country in million estates )
1955-56 1960-61 1965-66
entire describing country 720.0 721.0 721.0
woods 125.6 131.0 132.0
land under assorted
tree harvests and groves 13.9 14.0 15.0
lasting grazing lands and
other croping lands 28.4 32.0 32.0
culturable waste 54.8 47.0 40.0
wastes and uncultivated
land and land put to
non-agricultural usage 118.7 114.0 114.0
fallow lands other
than current fallows 30.9 28.0 26.0
current fallows 29.5 28.0 25.5
non country shown 318.2 327.0 335.0
country sown more than one time 44.4 51.5 67.0
gross country sown 362.6 378.5 402.0
Availability per caput of arable land in India is about 0.82 estates as against 0.42 in U.K. , 0.48 in Germany, 0.17 in Japan, 0.50 in China, 2.68 in U.S.A. and 2.59 in U.S.S.R.
7. Soil surveys.-Until late cognition of dirts in different parts of the state was unequal and the necessary Administration for dirt studies had non been established. Appraisal of dirt resources, affecting study and categorization of dirts provides the footing for measuring their potencies every bit good as their restrictions for effec- tive development and rational land use.The chief object of dirt studies is to sort and adult male out of assorted types of dirts, to cognize dirt differences, and to organize cognition of dirts with a position to puting down criterions of terminology, etc. With the assistance of these studies it becomes possible to fix strategies for the better usage of land and to be after, for dirt preservation and irrigation and drainage plants. In 1955 an all-India dirt study strategy was initiated at the Indian Agricultural Research Institute with a position to transporting out reconnaissance dirt studies taking to correlativity of dirts of different parts. Soil correlativity work involves categorization and puting down of terminology of dirts on a unvarying footing and besides the readying of dirt study studies and dirt maps. In the field of dirt studies, State Governments are specially concerned with facets associating to agriculture, forestry, irrigation, drainage, dirt conser- vation, etc. Since there are common dirt jobs covering more than one State and all States do non hold their ain dirt study organisa- tions, with a position to organizing work on dirts, it was felt that the best class would be to put up research labs on a regional footing for the four major dirt groups happening in India, viz. , ( 1 ) at Delhi, for the Alluvial Soil Region, ( 2 ) at Poona ( now at Nagpur ) for the Black Soil Region, ( 3 ) at Kharagpur ( now at Calcutta ) for the Red and Laterite Soil Region I, and ( 4 ) at Bangalore
NATURAL RESOURCES 97
for the Red and Laterite Soil Region II. Three old ages after its origin, the strategy was integrated with the strategy for dirt and land usage planning drawn up by the Central Soil Conservation Board for the intent of dirt and land usage study in the catchment countries of six major river vale undertakings, viz. , Machkund, Hirakud, Chambal, Bhakra Nangal, Kosi and Damodar, numbering about 78,000 square stat mis. Surveies in the catchment countries aim at sorting lands into capableness categories basically from the point of position of following dirt preservation steps with a position to understating dirt eroding, preserv- ing the top dirt for cultivation and forestalling sediment fluxing into storage reservoirs, and therefore increasing their life. Soil preservation work in the catchment countries involves elaborate studies in agricultural lands and reconnaissance studies in other countries. The entire country to be surveyed is about 500,000 square stat mis. By the beginning of 1961, an country of about 18,000 square stat mis had been covered by both elaborate 'and reconnaissance studies undertaken through the all-India strategy. Of this country, about 3000 square stat mis fall within the catchment countries of the river vale undertakings. Soil study administrations in the States have surveyed about 50,000 square stat mis. Under the all-India programme, about 23,000 square stat mis are to be surveyed during the Third Plan.
18. Survey of wastelands.-Agricultural production can be stepped up through extension of country under cultivation by cultivating waste lands, dual cropping of individual harvest countries, and other steps of intensifiers farming. There is considerable range for widening the gross country sown by dual cropping. It is anticipated that the country sown more than one time might increase from about 52 million estates in 1960-61 to about 67 million estates by 1965-66. Harmonizing to the avail- able land use statistics the country under culturable waste in 1955-56 amounted to about 55 million estates. In June 1959, the Govern- ment of India constituted a Committee to do a study of land classi- fied as `` other uncultivated land excepting fallow lands '' and `` fallow lands other than current fallows '' and to turn up countries where big blocks of land are available for renewal and relocation. The Committee has completed its study of seven States. In these, the country of barren available for cultivation in blocks of 250 acre or more is reckoned at about a million estates. The Committee 's findings sing the present statistics of barrens are of considerable importance. On the whole the bing informations are non sufficiently dependable, and lands classified as culturable waste at the clip of colony frequently continue to be shown as such in the gross records long after they have come under cultivation. In the position of the Committee, the mere aggregation of statistics under the caput 'cultura- ble waste ' can function small intent and elaborate information should be available about the types of barrens in each State, the ownership of such lands, their handiness in ample blocks and the cost of renewal steps. The Committee has, hence, recommended that rapid reconnaissance studies should be conducted for roll uping such information.
9. To sum up, there are big spreads in the information at present available sing land resources. To procure speedy consequences it is necessary that land studies utilizing photogrammetric techniques ( aerial exposure ) should be undertaken, and informations on and utilize, land betterment, renewal of water-logged, saline and alkalic lands and productiveness should be collected in a systematic mode with a position to pulling up farther programs.
Three
FOREST Resource
10. Out of the entire geographical country of 1.26 million square stat mis, about 274,000 square stat mis or about 21.8 per cent of the country consists of woods. Due to fluctuations in climatic conditions and differences in height a big assortment of natural flora runing from temperature to tropical is found in the woods of India. For- Eastern Times may be classified as follows:
Table 2: Categorization of woods
per centum
temperate woods
cone-bearing 3
broadleaf 4
tropical woods
deciduous 80
evergreen 12
others 1
11. The productiveness of India 's woods can be greatly in- creased. Forests are among the few renewable resources in nature which, if decently managed, could travel on giving at unrelieved rate and for an indefinite period. There is deficit of lumber and fire- wood, of natural stuffs for drugs, paper and mush and of fresh fish for cowss.
12. Wood and other wood merchandises are basic natural stuffs indispensable for 'industrial development. In the past no proper apprais- Al of local forest resources was made and merchandises such as paper or mush, plyboard, tannic acid, etc. , were freely imported. With a position to developing such industries in the state, an assessment of the posi- tion of such natural stuffs is a affair of importance. The ingestion of industrial wood in India is every bit low as 0.6 cft. per capita per twelvemonth as against 16.0 cft. in France and 13.4 cft. in Japan. India 's present demands of industrial wood sum to 4.5 million dozenss and are estimated to be more than 9 million dozenss in 1975. As respects firewood resources, in the ordinary class, a demand of 100 million dozenss is anticipated by 1975.
13. It is indispensable that a sustained addition in production should be secured from twelvemonth to twelvemonth through injtensive development strategies, including choice of high output countries, seting of quick- turning species, debut of improved logging
98 THIRD FIVE Year Plan
and treating techniques, development of communications and more by and large, the linking of wood development with specific strategies of industrial development to be undertaken over the following few old ages. While the demands and supplies of industrial wood are still more or less balanced, it is considered that over the following 10 or 15 old ages unless particular stairss are taken, acute deficits might be experienced. This calls for steps for the intensification of production, devel- opment of hill woods, improved use of low class lumbers, economic system in fuel wood ingestion and systematic studies of forest re- beginnings in relation to specific industries. It is besides necessary to set about a study of forest lands, bespeaking countries which are severely eroded, those tantrum for natural regeneration and those where seting should be undertaken. In some countries, specially in Central and South India, there are natural woods with trees which 'have merely fuel value. These countries can be covered with valuable deep-rooted woods. There is need excessively for obtaining informations sing forest resources in unaccessible countries.
Four
WATER RESOURCES
14. Water resources may be divided loosely into surface H2O and belowground H2O. Their development has to be viewed in relation to the demand to increase the productiveness of land through irrigation, inundation control, drainage and other agencies and besides to domestic. and industrial demands.
15. Surface water.- The one-year rainfall over the full state represents something more than 3000 million acre-feet of H2O. Of this sum, about 1000 million acre-feet are lost instantly due to vaporization and approximately 650 million acre-feet seep into the dirt, go forthing 1350 million acre-feet to flux into the river systems. The full surface flow can non be utilized because topography, flow char- acteristics, clime and dirt conditions impose bounds on serviceability. It has been estimated that merely 450 million acre-feet can be harnessed for intents of irrigation. Advancement in existent use is as follows:
Table 3: Surface H2O use for irrigation
million every bit Percent as per centum
acre-feet of useable of entire
flow flow
upto 1951 76 17 6
upto 1960-61 120 27 9
upto 1965-66 ( anticipated ) 160 36 12
16. Belowground H2O. : Of the 650 million acre-feet of H2O that seep down yearly into the dirt, about 350 million, acre-feet get absorbed in the top beds thereby lending to dirty wet which is indispensable for the growing of flora. The staying 300 million acre-feet percolate down into porous strata and stand for the one-year enrichment of belowground H2O. The entire storage resistance at any peculiar clip may be several times this sum, but it can be assessed merely if a country-wide probe is undertaken. The existent use of belowground H2O at nowadays is less than 20 per cent of the one-year enrichment. Over the past eight old ages, through a series of ground-water geographic expedition undertakings, attempts have been made to set up countries favorable to the sinking of tube-wells. For the 3rd Plan, a undertaking including 500 explorative drillings has been accepted. With a position to easing the work of geographic expedition and cut downing the demand for large-scale boring, it is besides proposed to transport out geo- physical probes. In peninsular India such probes would rapidly de ermine the deepness of the bed stone and are likely to give first indicants of ground-water handiness. A study pro- gm is besides in manus in Andhra Pradesh for placing countries of belowground H2O where filter points for extraction of H2O can be successfully drilled.
17. Utilisation.-The major usage of H2O is for irrigation and hydropower coevals, but H2O is besides used for public H2O supply, industrial and pilotage intents. Water supply for irrigation can be obtained both from surface and belowground resources.
18. The Central Water and Power Commission initiated in 1954 a survey of different basins in the state for measuring the ultimate potency of major and average irrigation undertakings. For intents of this survey the state was divided into five chief zones covering groups of river basins, and for each river basin the topography, rainfall, strength of cultivation, possible storage sites, irrigable countries, reservoir capacity and other relevant factors were examined. Surveies in regard of four zones are about complete, while the fifth has still to be taken up. A preliminary appraisal places the irriga- tion potency of major and average undertakings at 100 million estates ( gross ) distributed as follows:
Table 4: Irrigation potency of major and average undertakings:
irrigation
possible
( million estates )
zone 1: West-flowing rivers ( covering river
basins in Kerala, Mysore and Maha-
rashtra State and the basins of Tapti-
Narmada & A ; others ) 10
zone 2: East-flowing rivers ( covering the basins
of Tambraparani, Vaigai, Cauveri
Mahanadi, Godavari, Krishna, Pennar
and others ) 33
zone 3: Indus basin 13
zone 4: Ganga basin ( covering, Chambal,
Jamuna, Ramganga, Tons, Gomti,
Sone, Ganga and its feeders ) 41
zone 5: Brahmaputra basin 3
entire 100
Policy PRIORITIES
3.1 The macroeconomic considerations discussed in measuring the likely growing waies are a portion of the overall development scheme that needs to be addressed in the Ninth Plan. This chapter discusses some of the other issues which are of economy-wide significance. The more elaborate sectoral policy issues are taken up in the following chapter.
3.2 At macro level the planning theoretical account in the Planning Commission is used to apportion resources among economic sectors. The inexplicit logic of allotment in the theoretical account is the demand for consistence in the reciprocally back uping function of these economic sectors to do executable a mark rate of growing and demand form. However, the allotment of resources to the societal. sectors like wellness, instruction, public assistance, lower limit demands and poorness relief, etc. is done chiefly on the footing of the perceptual experiences of the policy shapers and contrivers as to the demand in these sectors within the overall restraints of available resources.
3.3 There is no standard set of standards for make up one's minding allotment of financess to programmes, strategies and undertakings within a sector. The strategies which take the form of a Undertaking in energy, conveyance, irrigation and communicating, etc. have to go through the minimal criterions of fiscal and/or economic rates of return. However, there are no ways of doing a pick from amongst a big figure of undertakings or strategies which would go through the same criterion. Programs and strategies which are non conformable to such cost-benefit analysis do non hold to go through through even this type of examination. Therefore it is necessary to germinate certain guidelines for the choice of programmes, strategies or undertakings from among the many which are possible at a given clip. The undermentioned trials are proposed:
I ) Then schemes which are of larger benefit to the hapless as compared to the remainder of the population should hold a precedence.
two ) The strategies which benefit the adult females, kids and the weaker subdivisions of the society more than the population as a whole should hold a precedence.
three ) The strategies which are of larger benefit to the backward part should hold a precedence.
four ) Schemes which are non-displacing, authorising and labor-intensive should hold precedence.
V ) The strategies which give long term sustainable benefit should hold a precedence over strategy which
33
give a small higher benefit but merely of a transitional nature.
six ) The strategies which help the creative activity of productive assets ( personal assets or economy-wide assets ) should hold a precedence over those which merely help to raise the current degree of income or good being.
seven ) Service-oriented strategies ( except those in the class of basic minimal services ) , which require high degree of subsidization, should hold low precedence and attempt should be made to promote commercial operation of such services.
eight ) Schemes which require creative activity of enabling environment by manner of systemic reforms, alterations in legislative model, institutional development, .promotion of participatory attacks and selfgovernance should hold a high precedence.
3.4 Population stabilization is an indispensable requirement for sustainability of development procedure. The National Family Planning Programme was launched in 1952 with the aim of `` cut downing birth rate to the extent necessary to brace the population at a degree consistent with demand of national economic system '' . The technological progresss and improved quality and coverage of wellness attention resulted in a rapid autumn of mortality rate from 27 in 1951 to 9.8 in 1991. In contrast, the decrease in birth rate has been less steep worsening from 40 in 1951 to 29.5 in 1991. As a consequence them one-year exponential population growing has been over 2 % in the last three decennaries. During the Eighth Plan period the autumn in birth rate has been steeper than that in the decease rate ; accordingly one-year growing rate is around 1.9 % during 1991-95. The rate of diminution in population growing is likely to be accelerated during the Ninth Plan period.
3.5 Though the diminution in birth and decease rates have occurred in all provinces, the rate of diminution was slower in some provinces like U.P. and Bihar ; even within the same province there are significant differences between territories. The Family Welfare Programme, hence needs to be reoriented to take or understate the inter- and intra-State differences with accent on improved entree and quality of generative and child wellness services through PHC based decentralized country specific microplanning without resort to specific centrally fixed marks.
3.6 It is imperative that equal data-base is available at PHC degree on annual footing, both for the demand
34
appraisal as besides to supply an independent mechanism for impact appraisal and midcourse rectification. This can be achieved merely through complete enrollment of all births and deceases. For this, it is necessary to beef up the Civil enrollment system through engagement of ICDS workers, Panchayati Raj establishments, every bit good as wellness forces.
3.7 Simultaneously, the Ninth Plan will establish an intensive thrust to advance wellness instruction so that India builds a sound foundation for a successful preventative and promotive national wellness paradigm. Basic rules of hygiene, sanitation, nutrition, and bar of unwellness and disease will be promoted through non merely the educational establishments and the grownup instruction programme but besides through the ICDS programme, through guidance offered by the wellness workers at all degrees, and the mass media.
3.8 The 2nd of import component of sustainability pertains to the protection of the environment and saving of the natural resource base of the state. Quickly turning population, urbanization, altering agricultural, industrial and H2O resource direction, increasing usage of pesticides and fossil fuels have all resulted in perceptible impairment in the quality and sustainability of the environment. It needs to be realised that environment protection does non merely affect a bar of pollution and of natural resource debasement, but has to be integrated with the over-all development Procedure and the wellbeing of people. This attack has been articulated in the Agenda 21 of United Nations Conference on Environment and Development. The stairss outlined in this papers demand to be adopted and integrated with the development scheme. A synergism between wellness, environment and development is recognised.
3.9 Regeneration of the forest screen is an of import constituent of environmental sustainability. This non merely requires attending to the saving of bing woods, Particularly in the delicate eco- parts of the Himalayas and the Ghats among others, but besides a greater attempt to make forest screen in a wide-spread mode. It is proposed that every territory in the state should reserve at least 2 per cent of its available country as wood.
3.10 One of the chief jobs in taking a rational determination on natural resource usage is the deficiency of an appropriate information system and a methodological analysis for natural resource accounting. As a consequence, the depletion of the national plus base is merely non taken into history while measuring alternate schemes. The Ninth Plan will put great emphasis on germinating such natural resource accounting
35
methodological analysiss so that determinations can be taken on the footing of the full cost to the Nation.
3.11. The most of import methodological analysis for forestalling undue depletion of natural resources is by guaranting their efficient usage at all degrees. This has two of import dimensions. First, exhaustible or vulnerable natural resource should be priced suitably in order to forestall over-exploitation. In 'India, since a big proportion of natural resources are subjected to administered monetary values, there has been a inclination to under-price resources rather significantly. This attack needs to be changed desperately. Second, engineerings which conserve the usage of natural resources need to be developed and promoted smartly.
3.12 Food and nutrition security every bit good as poorness relief are unalienable constituents of sustainable development. In position of the fact that the net seeded country is likely to worsen in the hereafter in order to continue the ecological balance, accent will hold to be placed on increasing the productiveness of land usage. There is hence need to heighten the flow of resources to agriculture from both public and private beginnings and to smartly advance the execution of land reforms so that the productiveness of land usage is enhanced. In add-on, stairss will necessitate to be taken towards more efficient usage of dirt and H2O resources. A start has been made in this procedure by promoting a diversified growing of agribusiness by agroclimatic parts. This would hold to be carried frontward smartly. New enterprises will necessitate to be developed for intercession on the footing of agro-economic classification. In the thin agricultural season, upto 100 yearss of assured employment will be provided under the Employment Assurance Scheme, which is being universalised.
3.13 In order to beef up the technological capablenesss of the Indian industries, both for run intoing the national demands and for supplying planetary fight, a figure of new enterprises have been launched. A Technology Development Board has been established in 1996 with a authorization to ease development of new engineerings and assimilation and version of imported engineerings by supplying catalytic support to industries and R & A ; D establishments to work in partnership. Matching grants to R & A ; D establishments demoing commercial net incomes through engineering services was besides introduced in 1996 and will be carried frontward and broadened. Already a long-run position called Technology Vision for India 2020 has been prepared, which could organize the footing of engineering development programmes.
3.14 Issues of natural resource preservation and agricultural growing can non be efficaciously tackled in the
36
absence of an appropriate technological base. In add-on, engineering is indispensable for increasing the fight of the Indian economic system in international markets. Autochthonal development of engineering is hence of the highest importance and deliberate planned stairss need to be taken to increase technological autonomy of the Nation.
3.15 Rapid proficient advancement is changing basically the accomplishments, cognition, substructure and establishments needed for the efficient production and bringing of goods and services. So wide and far- stretch are current technological developments that many see the outgrowth of another industrial revolution driven by a new technological `` paradigm '' . This paradigm involves, non merely new engineerings and accomplishments in the traditional sense, but besides different work methods, direction techniques and organizational dealingss within houses. As new conveyance and communications engineerings shrink international 'economic infinite ' , it besides implies a important reordering of comparative advantage, and trade and investing dealingss, between states.
3.16 In India besides, there is considerable technological activity in a broad spectrum of houses. what is most impressive is the figure of little and average sized endeavors that are puting in new engineering based ventures, and frequently striking out in universe market as exporters. However, the remainder of the industrial sector still needs to put on engineering upgrading. Experience of many developing and industrialized states suggests that a rapid acceleration of industrial engineering development calls for a deliberate 'strategy ' , in the sense that it requires the authorities to organize and steer an basically market- goaded procedure. Free markets suffer from assorted sorts of market failures ' , they may non throw up the appropriate sums of substructure, accomplishment, information and institutional support, and mere exposure to market forces, while acquiring rid of inefficient policies, may non do to make the technological dynamism that continued industrial growing demands.
3.17 Indian engineering policies are undergoing important alterations, and on the whole have improved greatly in recent old ages. They are non, nevertheless, ideal. A coherent engineering scheme In India must turn to a figure of interrelated elements in the inducement government and the relevant factor markets and establishments. The undermentioned attack should steer future policies in engineering:
accomplishments: Technology development calls for both general and specific signifiers of human capital, and emerging engineerings are extremely skill intensive in both proficient and managerial footings. While India is endowed at present with big sums of high-ranking human capital, investings in the creative activity of new accomplishments ( as measured by registration degrees in proficient
37
topics at all degrees ) are low. In add-on, house degree investings in developing are extremely variable, and big parts of industry invest really small in preparation. The SME sector in peculiar suffers from really low degrees of accomplishment, while industrial preparation institutes are frequently unresponsive to their demands.
Technological attempt: R & A ; D in Indian industry has been lifting, but the overall degree is still low and over three quarters of research attempt originates in the populace sector. This is in contrast to Taiwan and Korea, where most of R & A ; D is undertaken by industrial endeavors. It is of import for the Government to analyze current technological tendencies in industry in order to explicate appropriate policies to promote R & A ; D.
Technology entree: Technology upgrading requires that Indian endeavors of all types have information on relevant engineerings in international markets and besides within the state. Many states have well-developed systems of computerised online engineering information and airing services, frequently backed up with consultancy and fiscal aid for little and average endeavors to enable them to cognize approximately, trial, and implement new engineerings. The handiness of similar installations are weak in India. Note needs to be taken of the emerging tendencies of limitations on entree to engineering through rigorous rational belongings limitations and on `` double usage '' engineerings by certain. groups of industrially advanced states. Particular attempts have to be made to guarantee that such limitations do non suppress advancement in high engineering sectors.
Technology establishments: India has a big substructure of engineering support establishments, some of which are undergoing reform to do them more relevant to industrial demands. A figure of universities, particularly the IITs, are interacting progressively with industry on technological affairs, while others are outside this circle. There is a demand to beef up 'Technology Foresight Programmes ' to analyze the deductions of emerging engineerings, analyse domestic strengths and failings and aim future engineerings for local development.
Other substructure: Technology development by and large requires the puting up of bunchs of industries that can portion information and accomplishments, as in scientific discipline Parkss ' or dedicated industrial estates. some such installations exist in India, but their efficaciousness and working demand to be strengthened.
3.18 Finally, an of import constituent of sustainability of the development procedure is in the accomplishment of a high
38
degree. of integrating between the assorted parts of the state so that the benefits of rapid and sustained growing can be spread widely in order to better both regional balance and the economic chances available to the people. The most of import constituents for accomplishing this terminal are transport linkages and communications. The Ninth program will put great accent on supplying the needed connectivity to all parts of the state.
3.19 Although the Government can increase the connectivity of small towns through public plants and employment coevals programmes by affecting the local organic structures, major route web development would still necessitate a considerable sum of resources. Fresh enterprises need to be taken in this way by coordinate action between the assorted grades of Government and with aid from private bureaus and fiscal establishments. Advanced methods of uniting Public and private resources would necessitate to be worked out in order to do such investings productive and feasible.
3.20 Similarly, in so far as communications are concerned, it is improbable that the resources available with the Government would be sufficient to spread out the telecommunications web to the extent desired. The enterprises that have been taken to supplement the public sector attempts need to be carried frontward, and a proper enabling environment demands to be created. This is indispensable since communications are as indispensable an infrastructural input as they are critical for integrating.
3.21 In visible radiation of the macro-economic restraints being faced by the economic system and the analysis of the executable growing waies, it appears that a sustained acceleration in the growing rate of the economic system will hold to be associated with a determined attempt at raising public nest eggs, chiefly by cut downing the gross shortage and bettering the public presentation of public sector endeavors. This is necessary in order to supply both the necessary degree of investible resources and forestall the re- outgrowth of balance of payments unsustainability. Stairss would besides hold to be taken to guarantee that private nest eggs addition in a sustained mode.
3.22 In regard of public nest eggs, while the rate of growing of grosss must be increased, the rate of growing of gross outgo excessively should be slowed down. The Government will call up fiscal resources by using all beginnings which have remained untapped so far. At the same clip, the construction and mode of deployment of public outgo should be altered significantly in order to guarantee the maximal positive impact on poorness relief and the societal sectors.
39
3.23 It is to be noted that the ratio of entire grosss of the Centre and the States to GDP had reached 23.8 per cent in 1989-90, but declined thenceforth and came down to 22.6 per cent in 1990-91 and stayed at the degree in 1993-94. However, there is a major difference between the behavior of grosss between the Centre and the States. The gross grosss of the Centre declined steadily from 14.4 per cent in 1989-90 to 12.2 per cent in 1993-94, whereas in the instance of the States, it increased steadily from 9.4 per cent in 1989-90 to 10.4 per cent in 1993-94. The ratio of entire revenue enhancement grosss of the authorities sector to GDP had reached 16.9 per cent in 1989-90 but declined thenceforth and reached 15.3 per cent in 1993-94 ( it is estimated to hold reached around 16 per cent of GDP in 1995-96 ) . In position of this, it would be sensible to take at raising the revenue enhancement ratio by approximately 1.5 to 2.0 per centum points of GDP so that it reaches the degree of 17.5 per cent in the post-Plan period. This would merely intend somewhat transcending the ratio that had already been reached in 1989-90.
Acharya, S. and R.L. Jogi. 2004. aa‚¬A“Farm Input Subsidies in Indian Agriculture.aa‚¬A? Institute of Development Studies Working Paper 140, Jaipur India.
Government of India, Planning Commission. 2005. Midterm Appraisal of 10th Five Year Plan ( 2002-2007 ) . hypertext transfer protocol: //planningcommission.nic.in/midterm/midtermapp.html
Jalan, B. 2004. The Future of India: Politicss, Economics, and Governance. Penguin Books: New Delhi
