It is always a pleasure and heartening to know that yet another product which is truly Indian in every sense has been launched and the whole world is going gaga about it. It’s a real achievement for a country that has been lagging behind in every other parameter is beginning to set the pace by creating newer segments and venturing into areas unknown for the rest. In that sense it’s a marvelous one.
It all started in 1991 post liberalization and the country has come a long way since then. The urban middle class population has been on the rise and the shape of the urban income pyramid has changed from a triangle with a large number of people at the bottom with the numbers decreasing moving to the top to more of a diamond shaped one with a significant number of people in the middle region and lesser number of people at the top and bottom. Rural India is not faring badly either as it is changing from a largely agriculture dependent economy to a one dominated by small enterprises. Though the change is slow it is beginning to happen. As a result we are witnessing a shift in the income levels of rural masses as well with reduced levels of poverty (in percentage terms and not in real terms). In other words one can say that industry led economy has begun to play spoil sport with agriculture. It may look exciting with higher returns now but it is not a sustainable one in the long run. This will make us dependent on other countries to meet our food requirements and that is like committing hara kiri.
With that background let us see how TATA NANO has emerged as a threat rather than a supposed boon to India and its masses. When Singur bid adieu to NANO thanks to Mamta and a few others there was a huge hue and cry across all sections of the people about the missed opportunity to generate jobs, generate revenue to the state economy and to change the face of the Bengal economy from a communist led socialist one to an investor friendly destination. Few bothered to look at the positives. It is actually a blessing in disguise for Singur. Singur is one of the most fertile regions in the country where three crops can be grown per year with high levels of underground water, decent rainfall pattern and good source of irrigation. All this means that it is a farmer friendly one blessed for agriculture. Giving it to NANO is like cutting the golden egg laying goose. Momentary madness it was.
Same is the case with Sanand near Ahmedabad in Gujarat. The area is as fertile as Singur if not more and the long term benefits are manifold. But it is not meant to be that way. With a lot of freebies including water, electricity for a number of years to loans at the rate of 0 to 0.5% per annum, the Gujarat Government gave it all to the TATAs and rolled a red carpet to signal the death knell of agriculture in the region.
Apart from the fact that NANO kind of projects is being established in fertile parts of the country, there are more social problems than benefits that the society can derive out of them. For instance imagine close to 70000 NANOs on Indian roads by January 2010 and another 200000 by January 2011. Do we have the infrastructure to support such ventures? We are already facing heavy traffic problems in cities like Bangalore, Mumbai, Chennai, etc. making commutation a nightmare for the people. With that NANO and other small cars, two wheelers where are we heading to?
Our economy is a robust one but the growth can be sustainable and meaningful only if we get our basics right like protecting agriculture. It is time for people who are interested to give a thought over these issues and voice their concern. Let us hope we live in a better place.
ARUN
PS: The details given about TATA Motors’ deal with Gujarat Government was released by the Gujarat Government in response to an RTI application but was withdrawn a day after as the TATAs do not want it to be publicized.
FYI: RTI cannot be used to obtain details about a public-private venture. The government can release the details only if the concerned private party agrees to the release of the details of the deal.
It all started in 1991 post liberalization and the country has come a long way since then. The urban middle class population has been on the rise and the shape of the urban income pyramid has changed from a triangle with a large number of people at the bottom with the numbers decreasing moving to the top to more of a diamond shaped one with a significant number of people in the middle region and lesser number of people at the top and bottom. Rural India is not faring badly either as it is changing from a largely agriculture dependent economy to a one dominated by small enterprises. Though the change is slow it is beginning to happen. As a result we are witnessing a shift in the income levels of rural masses as well with reduced levels of poverty (in percentage terms and not in real terms). In other words one can say that industry led economy has begun to play spoil sport with agriculture. It may look exciting with higher returns now but it is not a sustainable one in the long run. This will make us dependent on other countries to meet our food requirements and that is like committing hara kiri.
With that background let us see how TATA NANO has emerged as a threat rather than a supposed boon to India and its masses. When Singur bid adieu to NANO thanks to Mamta and a few others there was a huge hue and cry across all sections of the people about the missed opportunity to generate jobs, generate revenue to the state economy and to change the face of the Bengal economy from a communist led socialist one to an investor friendly destination. Few bothered to look at the positives. It is actually a blessing in disguise for Singur. Singur is one of the most fertile regions in the country where three crops can be grown per year with high levels of underground water, decent rainfall pattern and good source of irrigation. All this means that it is a farmer friendly one blessed for agriculture. Giving it to NANO is like cutting the golden egg laying goose. Momentary madness it was.
Same is the case with Sanand near Ahmedabad in Gujarat. The area is as fertile as Singur if not more and the long term benefits are manifold. But it is not meant to be that way. With a lot of freebies including water, electricity for a number of years to loans at the rate of 0 to 0.5% per annum, the Gujarat Government gave it all to the TATAs and rolled a red carpet to signal the death knell of agriculture in the region.
Apart from the fact that NANO kind of projects is being established in fertile parts of the country, there are more social problems than benefits that the society can derive out of them. For instance imagine close to 70000 NANOs on Indian roads by January 2010 and another 200000 by January 2011. Do we have the infrastructure to support such ventures? We are already facing heavy traffic problems in cities like Bangalore, Mumbai, Chennai, etc. making commutation a nightmare for the people. With that NANO and other small cars, two wheelers where are we heading to?
Our economy is a robust one but the growth can be sustainable and meaningful only if we get our basics right like protecting agriculture. It is time for people who are interested to give a thought over these issues and voice their concern. Let us hope we live in a better place.
ARUN
PS: The details given about TATA Motors’ deal with Gujarat Government was released by the Gujarat Government in response to an RTI application but was withdrawn a day after as the TATAs do not want it to be publicized.
FYI: RTI cannot be used to obtain details about a public-private venture. The government can release the details only if the concerned private party agrees to the release of the details of the deal.
