quest augut 2017 curves correct -...

Viram Ahir

Lab Assistant,

Prof. Maulik Shah

Prof. Pratibha Nair

l KAR MOBILE LTDl RANE TRW STEERING SYSTEM Ltdl RANE NSK STEERING SYSTEM LTDl RANE DIECAST LTD

Rane Engine Valve: Rane Engine Valve Ltd. was incepted in 1959 to manufacture valves and

valve train components for various engine applications. It has latest manufacturing practices to

keep abreast of technological advancements caters to every section of the auto industry through

four manufacturing plants. It has got cutting edge technology.It is a market leader in India. Its

clientele spread across Europe, North America and the Far Eastern markets including the best

known brands such as Volkswagen, Deutz and Yamaha.It has centralized R&D and product

engineering function. Its design and functional aspects of development match customer

requirements. Its design team includes IC Engine Specialists, CAD and CAM application experts,

software analysts. CAD/CAE, Finite Element Analysis (FEA) Pro-E, Ansys etc used for new

product development. Up to date practices like QFD, Design reviews and world acclaimed

Japanese development methods are implemented across facilities.

Mission & value:

l Provide superior products and services to our customers and maintain market leadership.l Evolve as an institution that serves the best interests off all stakeholders.l Pursue excellence through Total Quality Management. l Ensure the highest standards of ethics and integrity in all our actions

Vision:

l To become “A world class supplier of Engine Valves to the Global Transportation Industry”.

Customer inside India

l ASHOK LEYLAND,ESCORT,FORCE ,FIAT,FORD,HERO HONDA,HINDUSTAN

M O T O R S , H Y U N D A I , G E N E R A L M O T O R S , M A H I N D R A , M A R U T I

SUZUKI,SWARAJ MAZDA,TATA,TOYOTA,TVS,YAMAHA.

LITERATURE REVIEW

According to Gorter(1996) Some of the research professionals and scholars say that there is a close

linkage between the recruitment selection employee satisfaction organization performance and HR

practices. Raymond J. Stone (2005) in the fifth edition of his book Human Resource Management

defines recruitment as the process of 'seeking and attracting a pool of applicants from which

qualified candidates for job vacancies within an organization can be selected.' Among recruitment

sources Bernardin say that internal source of recruitment is effective compared to the external

source (H.John, 2003). Decker & Cornelius say that compared to the traditional recruiting sources

the modern sources like referrals, casual applicants and direct approaches will benefit at large

(L.Barclay, 1985) (Cappelli, 2001). According to Korsten (2003) and Jones et al. (2006), Human

4 TIMS - Quest Journal of Management & Resarch

Resource Management theories emphasize on techniques of recruitment and selection and outline

the benefits of interviews, assessment and psychometric examinations as employee selection

process. They also stated that recruitment process may be internal or external or may also be

conducted online. Typically, this process is based on the levels of recruitment policies, job postings

and details, advertising, job application and interviewing process, assessment, decision making,

formal selection and training. They also suggested that examples of recruitment policies in the

healthcare, business or industrial sector may offer insights into the processes involved in

establishing recruitment policies and defining managerial objectives. Successful recruitment

techniques involve an incisive analysis of the job, the labor market scenario/ conditions and

interviews, and psychometric tests in order to find out the potentialities of job seekers. Also, small

and medium sized enterprises lay their hands on interviews and assessment with main concern

related to job analysis, emotional intelligence in inexperienced job seekers, and corporate social

responsibility. The other approaches for selection outlined by Jones et al. (2006) include several

types of interviews, role play, group discussions and group tasks, and so on. Any management

process revolves around recruitment and failure in recruitment may lead to difficulties and

unwanted barriers for any company, including untoward effects on its profitability and

inappropriate degrees of staffing or employee skills (Jones et al. 2006).Chris Piotrowski and Terry

Armstrong say that in their article that around all the organizations are using traditional recruitment

sources and 30% of organizations are screening candidates honestly (Armstrong, 2006). According

to SHRM (Society for Human Resource Management) says that 15% joined in the organizations

are placing false resume (Gusdorf, 2008).

NEED FOR THE STUDY

This project helps in learning the recruitment and selection techniques and also to find the current

factors affecting the company's recruitment. It's a methodology in which the particular organization

works and how a new candidate could be recruited in such a way that he/she would be fitted for the

right kind of career. Generally after finishing of the studies the next step of candidates is to get into

the job or business. So in order to get a clear cut idea how organization recruit the candidates and

what they prefer the most in a candidate, the project on recruitment and selection techniques is

being done. This project helps to get the complete picture how the process is being taking place.

This is even useful for organization for viewing their present situation whether they are processing

properly or not and helpful to make the required changes for the future purpose

OBJECTIVES OF THE STUDY

Primary Objective

l To identify the existing recruitment and selection techniques used in Rane Engine Valves Ltd.l To study various factors affecting recruitment and selection process in the company.

5Vol. VII, Issue II, August, 2017

Secondary Objectivel To analysis the satisfaction level of employees towards existing recruitment and selection

techniques.l To provide suitable suggestion to improve existing recruitment and selection techniques.

SCOPE OF THE STUDY

To study mainly the techniques of recruitment and selection followed at Rane Engine Valves Ltd

for the employees of the company. Recruitment and selection is important for the company.

Through this study the researcher will identify what all the best techniques followed in recruitment

and selection by the company. The company can easily identify which techniques gives more

benefit to the company. This project will help to get the practical knowledge in recruiting and

selecting the employees in the company and this project helps the organization to avoid the factors

that affect the recruitment and selection. And also to know the powerful type interview which must

be used.

RESEARCH METHODOLOGY

Research in common parlance refers to search for knowledge; it is an organized, systematic,

critical, scientific, inquiry or investigation into a specific problem, undertaken with the objective of

finding answers or solutions there to.

Research design:

Research design is the blue print of the research. The type of research design that is used for the

study is descriptive research design. Descriptive research studies are those studies which

describing the characteristics of a particular individual, state of affairs or group.

Research Instrument: Questionnaire is used to collect the data.

Sources of Data collection:

Primary data: The data required for the study will be collected using structured Questionnaire,

personal observation etc.

Secondary data: The secondary data are those which have already been collected by someone else

and which have been already passed through the statistical process, the present study makes use of

secondary data in the form of books, magazines, company websites, records, journals, etc.Sample Frame: A sample frame which means sample list, which contains sample size, sample unit,

sample design.

Sample Design: The sampling design used in this project is Simple random sampling. Simple random sampling is also known as chance sampling or probability sampling where each and every item in the population

Population: The population size at Rane Engine Valves Ltd is 300 staff members, has an equal chance of inclusion in the sample.

Sample Unit: The Universe of the study is the software engineers of Rane Engine Valves Ltd in Allanthur, Chennai.

Sample Size: The sample size that has been taken for the study is 120 staff members.


Ψ 2 ∑�[(= i - Ei)

2 / Ei]

Statistical Tools Used:

Statistical tools are used to analyze the collected information. The various statistical tools used in

this study are: Chi-Square Test for Goodness of Fit, Karl Pearson's Co-Efficient.

Simple percentage analysis: Here the simple percentage analysis is used for calculating the

percentage of satisfaction level in the total respondents.

Formula:

2Chi-Square Test for Goodness of Fit Ψ : This test is a measurable of probabilities of association

between the attributes. It gives us an idea about the divergence between the observed and expected

frequencies. Thus the test is also described as the test of goodness of fit.

Formula:

Karl Pearson's Co-Efficient of Correlation: Co-efficient of correlation is a measure that gives

the degree to which the two variables are interrelated. Karl Pearson gave the following formulae for

measuring the magnitude of linear correlation co-efficient between two variable X and Y.

Formula:

HYPOTHESIS TESTING

Chi-square test for goodness of fitSatisfaction level of present recruitment and selection technique

Ho: ThÉre exists no significance in satisfaction level of present recruitment and selection techniqueH1: There exists a significance in. satisfaction level of present recruitment and selection technique

Table showing Satisfaction level of existing recruitment and selection technique(Refer Table and Chart no 1 in Appendix A for values)


r = åXY / ÖSX2.SY2

No of respondents

Total No of respondents

Percentage (%) = X 100

Oi

Ei

(Oi-Ei)

(Oi-Ei)^2

(Oi-Ei)^2/Ei

35 24 11 121 5.042 49 24 25 625 26.012 28

24

4

16

0.667

7

24

-17

289

12.042

2

24

-22

484

20.167

?

(Oi-Ei)^2/Ei =63.93

Degree of Freedom = (n-1) = (5-1) = 4 Calculated Value = ∑(Oi – Ei)^2/Ei = 63.93Tabulated Value = 9.488, since calculated value > tabulated value rejectHo. Ho is rejectedResult: There exists significance in satisfaction level of present recruitment and selection technique

Karl Pearson's Coefficient of CorrelationInternal Vs External Factors

Table showing relationship between internal and external factors for recruiting employees(Refer Table and Chart no 2&3 in Appendix A for values)

X= ∑x/n =120/4 =30 Y = ∑y/n =120/4 = 30

r = ∑XY/√∑X².∑Y² = 836/√692*1650 r = 0.782

Result: There exists a positive relation between Internal and External factors that should be taken into account while recruiting the employees.

FINDINGS OF THE STUDY

l Majority (100%) of the respondents are male

l It is found that (46%) of the respondents belongs to 25-35 age group.

l It is inferred that (47%) of the respondents said structured interview is used in the company.

l It is inferred that (32%) of the respondents are recruited by the advertisement technique.

l Majority (66%) of the respondents are selected by all these method such as Aptitude, Case Study, Technical Round and Group Discussion.

l It is found that (35%) of the respondents say that all the following tests are mostly conducted such as Psychometric Test, Reference Test Check, Medical Test.

l It is inferred that (46%) of the respondents say that personal interview is the powerful interview technique used in the company.

l It is found that (38%) of the respondents says company's pay package is the internal factors that should be taken into consideration while recruiting the employee

l Majority (54%) of the respondents says employee rate is the external factors that should be taken into consideration while recruiting the employee


x

y

X=x-x¯

Y=y-y¯

XY

X^2

Y^2

45

59

15

29

435

225 841

41

33

11

3

33

121

9

15

26

-15

-4

60

225

16

19

2

-11

-28

308

121

784

? x= 120

? y = 120

? XY=836

? X²=692

? Y²=1650

l It is inferred th~t (51%) çf the respondents says recommendation of employees doesn't affect the company growth.

l It is found that (35%) of the respondents agree that the procedure adopted for recruitment and selection of employees enables to give right person at right job

l Majority (94%) of the respondents said that there is provision for evaluation and control of recruitment and selection process.

l Majority (41%) of the respondents are satisfied with present recruitment and selection techniques used in company

l It is inferred that (97%) of the respondents says recruitment and selection system is transparent at all levels.

l It is found that (98%) of the respondent says the employees are motivated by the internal recruitment.

l It is inferred that (63%) of the respondent says personal interview is the powerful interview technique that should be followed by the company.

l It is found that (50%) of the respondents disagree about the equal opportunity given to the female candidates in the company.

l It is inferred that there exists significance in satisfaction level of present recruitment and selection technique from the chi square goodness of fit test.

l It is found that there exist positive relation between Internal and External factors from karl pearson's coefficient of correlation.

LIMITATIONS OF THE STUDY

l The data is confined only to the employees of REVL

l Only the domestic market is the focus of this study. We have not studied about the

international recruitment process here.

l Sample size is limited due to the limited period allocated for the survey

l The analysis is completely based on the information provided by the employees and hence could be biased

SUGGESTIONS

l The management must discuss with the existing employee before recruiting the

candidates.l� The company can also give equal opportunity to recruit female candidates according to

their skills and knowledge.l The company can use different techniques for recruiting and selecting candidates

according to their designation.

l The company can see to that the recommendation of employees does not affect the company's growth.


CONCLUSION:

Recruitment and selection helps in identifying the best and qualified person. The main objective of

the study is to identifying the right person for the right job. The type of research design used for the

study is descriptive research design. Sample size taken for the study is 120 staff members of Rane

Engine Valve Ltd. Simple random sampling technique has been used. A structured questionnaire

is prepared to collect data. Secondary data was also been tapped. Thus study concludes that

Recruitment and Selection consisting of Title of the position, Department, Overall responsibility,

Term of employment, and Educational requirements, desired experience, specialized skills or

knowledge required. Recruitment and selection has a great impact on working condition of the

employees. And that is why the search or headhunt of people should be of those whose skill fits into

the company's values. This study also helps to understand how Recruitment and Selection is related

with various HR functions such as motivation, job analysis, training and development, career

planning, performance appraisal and HR planning. This study also concludes that there exists

significance in satisfaction level of present recruitment and selection technique adopted by the

company.

REFERENCES:

Articles/Journals/Magazines:

l Gorter CN. Employers' recruitment behavior and vacancy duration: an empirical analysis for the Dutch Labor Market. Applied Economies 1996; 1463-1474.

l Gusdorf ML. Recruitment and Selection: Hiring the Right Person. USA: Society for Human Resource Management, 2008.

l Cappelli P. Making the most of Online Recruiting. Harvard Business Review 2001;139-146.

l Armstrong CP. Current Recruitment and Selection Practices: A National Survey of Fortune

1000 Firms. North American Journal of Psycology 2006; 489-496.

l Barclay LP. Recruiting Sources:Another Look. Journal of Applied Psycology 1985; 20-28.

l John HB. Human Resource Management:An Experiemental approach. New Delhi: McGrawHill, 2003.

l Jones,David A; Shultz, Jonas W.; Chapman, Derek S.(2006) Recruiting Through Job Advertisements: The Effects of Cognitive Elaboration on Decision Making International Journal of Selection and Assessments, Volume 14, Number 2,pp. 167-179.

l Korsten A.D. (2003)Developing a training plan to ensure employees keep up with the dynamics of facility management, Journal of Facilities Management, Volume 1,Number 4, pp.365-379.

Books referred:

l Aswathapa K. Human Reosurce Management. New Delhi: TMH, 2007.

l Bhattacharyya DK. Human Resource Management. New Delhi: Excel Books, 2010.

l Rao P. Human Resource Management (Tex tand Cses). Mumbai: Himalaya Publishing House, 2010.

l Raymond J.Stone. Human Resource Management, fifth edition, Australia, John Wiley & sons, 2005.


l S. S. Khanka, Human Resource management, Chand, 2007

l C.B. Gupta, Human Resource management, Sultan Chand & Sons, 2000

l C. B. Mamoria, Human resource management. Himalaya Publishing House, 2008

l C.R.Kothari, Research Methodology, Wishwa Prakashan, 1990

l S. P. Gupta, Statistical Methods, Sultan Chand & Sons, 2003

Websites

l www.google.com , www.scribd.com, www.ranegroup.in, l www.citehr.com , www.docstoc.com

APPENDIX A:

Table1: Table showing the satisfaction level of staff's with present recruitment and selection techniques used in company

Chart 1: chart showing the satisfaction level of staff's with present recruitment and

selection techniques used in company.

11Vol. VI, Issue II, August, 2017

S NO

OPTIONS

NO OF

RESPONDENTS

PERCENTAGE (%)

1 Highly Satisfied 35 29 2

Satisfied

49

41

3

Neither

Satisfied

28

23

4

Dissatisfied

7

6

5

Highly Dissatisfied

2

2

Total

120

100

Table 2: Table showing the internal factors that should be taken into consideration

while recruiting the employee

S NO

OPTIONS

NO OF RESPONDENTS

PERCENTAGE (%)

1 Company’s Pay Pack 45 38

2

Growth Rate of the

Company

41

34

3

Cost of Recruitment

15

13

4

Organization Cultures

19

16

Total

120

100

Chart 2: Chart showing the internal factors that should be taken into consideration

while recruiting the employee

Table 3: Table showing the external factors that should be taken into considerationwhile recruiting the employee

Chart 3: Chart showing the external factors that should be taken into consideration while

recruiting the employee

12

S NO

OPTIONS

NO OF RESPONDENTS

PERCENTAGE (%)

1

Employee Rate

65

54

2 Political, Legal, Govt. Factor

27 23

3

Information System

26

22

4

Others

2

1

Total

120

100

TIMS - Quest Journal of Management & Resarch

Dr. D. Ashalatha,

Assistant Professor,

Department of Economics,

Andhra University,

Visakhapatnam 530 003,

Andhra Pradesh.

E-mail : [email protected]

Trends in the Growth

of School Education in India

ABSTRACT

rimary education constitutes a very important part of the Pentire structure of education. It is at this stage, the child

starts going to a formal institution and formal education

starts. Primary education in India has been under the control of a

number of agencies. It is still under the management of the private

agencies, though, the state is increasingly taking the responsibility

of providing free and compulsory elementary education to all.

Article 45 of the constitution provides for free and compulsory

education for all children in the age-group 6-14 years, up to a

minimum level. The whole idea has been woven into the concept of

Universalization of Elementary Education (UGC). The level of

compulsory education as envisaged in this Article corresponds to

the elementary education of eight year's duration from class I to

class VIII for the children aged 6-14 years. The universalization of

Elementary Education has been recognized as a constitutional

obligation in India by the year 1960 but the target has not been

achieved even after 54 years of the target year. Secondary

education occupies a critical position in the entire educational

structure and is described by many as the lintel of the entire

educational edifice. It has been observed that secondary education

takes place at the critical stage of adolescence; when attitudes to life

and work are being shaped. In this paper we examined the growth in

the enrollment of students by sex and the corresponding increase in

the number of schools and also examined the trends in number of

teachers by sex employed in primary, upper primary and secondary

schools and to estimate the student-teacher ratio. The enrollment of

girls has grown at a higher rate than that of boys during the entire

period of the study. The significance of women teachers has been

increasing over time and this should contribute positively to the

growth and development of students. One important reason of the

downfall in the quality and standard of school education during the

recent decades may be the uneven growth of enrollment, number of

teachers and number of schools, the enrollment growing faster than

the other two.

Vol. VII, Issue II, August, 2017 13

1. Introduction

One of the important characteristic features of democracy is that it presupposes an educated and

enlightened society. Democracy, both as a form of the government and as a way of life, cannot

function when the society is uneducated and ignorant. Education and modernization are the two

wheels of the same cart. Both, when combined together, lead to a rapid socio-economic

development of a nation.

Primary education constitutes a very important part of the entire structure of education. It is at this

stage, the child starts going to a formal institution and formal education starts. Primary education in

India has been under the control of a number of agencies. It is still under the management of number

of private agencies, though, the State is increasingly taking the responsibility of providing free and

compulsory elementary education to all. Article 45 of the Constitution provides for free and

compulsory education for all children in the age-group 6-14 years, up to a minimum level. The

whole idea has been woven into the concept of Universalization of Elementary Education (UEE).

The level of compulsory education as envisaged in this Article corresponds to the elementary

education of eight year's duration from class I to class VIII for the children aged 6-14 years. The

universalization of Elementary Education has been recognized as a constitutional obligation in

India by the year 1960 but the target has not been achieved even after 54 years of the target year.

The importance of secondary education was recognized long ago in India. The Kothari

Commission emphasized the importance of secondary education. Secondary education occupies a

critical position in the entire educational structure and is described by many as 'the lintel of the

entire educational edifice' (NIEPA, 2001: v). It critically provides links between various sub sectors

of education such as elementary education, higher education, vocational and technical education

besides work. It has been further observed that secondary education takes place at the critical stage

of adolescence; when attitudes to life and work are being shaped.

2. Growth of Enrollment and Primary Schools in India

Education plays a vital role in the process of human resources development. For an overall

development of the economy, development of education in general and Universalization of literacy

elementary education in particular, are given very high priority in India and in other developing

countries of the World. Therefore, a high priority is to be assigned to investment in education.

Primary education constitutes a very important part of the entire structure of education. It is at this

stage, the child starts going to a formal Institution and formal education starts. Education which he

receives at this juncture provides the basic foundation for his physical, mental, emotional,

intellectual and social development. Primary education deserves the highest priority, not only on

grounds of social justice and democracy, but also for raising the competence of the average worker

and for increasing the national productivity


Article 45 of the Indian Constitution guarantees provision of free and compulsory education to all

children up to the age of 14. Apart from being a Constitutional obligation, the provision of universal

elementary education is crucial for spreading mass literacy, which is a basic requirement for

economic development, modernization of the social structure and effective functioning of any

democratic institution. It also represents an indispensable first step towards the provision of equity

of opportunity to all citizens. The growth of the number of primary schools and the enrollment into primary education (schools),

and the number of children per school for selected years during the period of our study is provided

in the Table - 1. The First Five Year Plan (1951-1956) began on 1st April, 1951. At the beginning of

the First Plan in 1950-51, there were 2, 09,671 primary schools in the country. By 1965-1966, when

the education commission submitted its report, the number of primary schools had increased to 3,

91,064. When the progress was reviewed in 1985-1986, it was found that the number of primary

schools had increased to 5, 28,872. The period from 1986 onwards has been the period of

implementation of the NPE-1986. Therefore, it is expected that elementary education might have

developed considerably, both qualitatively and quantitatively. The total number of primary schools

stood at 8, 19,900 in 2009-10. Later it is decreased to 7, 90,640 by 2013-14. It is better not to over

emphasize changes in growth rates over different phases because for reasons of arithmetical

property, when one starts with a low base (as in 1951) the period immediately succeeding 1951 will

have high rate and the subsequent periods lower rates. But comparison between the growth rates of

boys and girls in any one phase assumes importance. In the analysis below, the differences in the

growth rates of boys and girls receive greater attention compared to differences between periods.

The index of growth of schools taking 1950-1951 as the base shows that the increase is not

substantial as compared to the enrollment of children in primary schools. The annual compound

growth rate of primary schools over a period of our study recorded 2.10 per cent.

The total enrollment in primary schools in the year 1950-1951 was 19.2 million children of which

13.8 million were boys and 5.4 million were girls. It constitutes 28.12 per cent of the enrollment of

girls to the total enrollment. The enrollment had increased to 50.5 million children in 1965-1966.

The enrollment of girls was 18.3 million, which constituted 36.24 per cent of the total enrollment.

The total enrollment in primary schools had increased to 87.4 million children in 1985-1986 of

which 52.2 million boys and 35.2 million girls. The girls enrolled constituted 40.27 per cent to the

total enrollment. In 2009-10 the total enrollments of children increased to 133.6 million of which

69.7 million were boys and 63.9 million were girls. Here the girls enrolled constituted 46.71 per

cent to the total enrollment. An interesting trend which can easily be observed is that enrollment of

girls has grown at a higher rate than that of boys during the entire period of study. Ultimately the

enrollment of children decreased to 130.0 million in 2013-14. Due to awareness and importance of

education of children, common people also sending their

children to the English medium schools. Children enrollments in private unrecognized primary

schools are not recorded in this data. So, due to this reason enrolment of children in recognized


primary schools decreased in 2013-14.

The annual compound growth rate of enrollment of total students over a period of our study

recorded 3.03 per cent. The growth rate of enrollment in the case of girls is much higher than in the

case of boys over the period of our study. The enrollment of students has increased at a higher rate

than the number of schools and teachers.

Table -1: Enrollment and number of recognized primary schools in India: 1950-1951 to

2013-14

2.1. Increase in number of students per teacher in primary schools

So far, we have examined the size and growth of primary education in the country during the period

of six and a half decades. But, they do not really indicate the quality of education. One indicator of

the quality is the student-teacher ratio. So we, as a first step examine the number of teachers

employed in the primary schools in the country and the rate of growth of the teachers by sex during

the period of the study.

Table - 2 shows that there were 5, 38,000 teachers employed in primary schools in 1950-1951 of

which 15.24 per cent were women. By 2013-14, the total number of teachers posted in primary

schools increased to 26, 84,000 of which 46.68 per cent were female. The male teachers were

decreased from 13, 19,000 in 2004-05 to 12,08,000 in 2009-10. Ultimately it is increased and stood


at 14, 31,000 in 2013-14. It is interesting that the index of female teachers increased at higher rate

than that of male teachers throughout the period under study. This has borne results in that the

women teachers have improved their share in the total in primary schools. This also may be due to

implementation of reservation policy in some states in the country in favor of women. One should

consider that increase in the number of women teachers is a healthy sign for the reasons (i) that it

contributes to gender equality, and (ii) the women teachers' exhibit care and patience, their general

traits, in teaching children.

The annual compound growth rate of total teachers recorded 2.54 per cent. The growth rate of

female teachers was 4.35 per cent against the growth rate of 1.80 per cent for male teachers. The

growth rate of female teachers was much higher than that of male teachers in the total study period.Note, however, that the number of teachers has not increased in the country in consonance with the

increase in the number of students enrolled. This has resulted in an increase in student-teacher ratio

over time except in 1955-1956, 1975-1976, 1995-96, 1999-2000, 2009-10 and 2013-2014. It

shows that the ratio was 36:1 in 1950-1951 and the ratio was constant in 1955-1956. Later it

increased to 54:1 in 1970-1971 then the ratio continuously increased to 60:1 in 1990-1991. Later it

was constant in 1995-1996 and it reached to 60:1 in 2004-05 and the ratio was constant in 2009-10

then it is decreased to 48:1 in 2013-14. Though the government has been insisting on a student-

teacher ratio of 40 students per teacher for aided schools, it has never been possible for the

government to achieve this objective. The data presented in Table-2 indicates only the country's

average, but in most of the schools, the student teacher ratio is observed to be more than 100:1. This

adversely affects the quality of education at primary level, because the school teacher does not find

any motive to teach such a huge number, let alone paying the much needed individual attention at

the stage of primary education.

Table - 2: Number of teachers employed by sex in primary schools in India: 1950-1951 To

2013-14 (In 000s)

Sources: 1. Annual reports of Ministry of Human Resource Development, Government of India 2. Selected Educational Statistics, Ministry of Human Resource Development, Government of India.


Year

Male

Index

% growth

rate

over previous period

Female

Index

%

growth rate


Total

Index

% growth

rate


Student-Teacher

Ratio

1950-51

456

100

82

100

538

100

36

1955-56

574

126

25.88

117

143

42.68

691

128

28.25

36

1960-61

615

135

7.14

127

155

8.55

742

138

7.38

47

1965-66

764

167

24.23

180

219

41.73

944

175

27.22

53

1970-71

835

183

9.29

225

274

25.00

1060

197

12.29

54

1975-76

965

212

15.57

283

345

25.78

1248

232

17.73

53

1980-81

1021

224

5.80

342

417

20.85

1363

253

9.21

54

1985-86

1094

240

7.15

402

490

17.54

1496

278

9.76

58

1990-91

1143

251

4.48

473

577

17.66

1616

300

8.02

60

1995-96

1187

260

3.85

553

674

16.91

1740

323

7.67

60

1999-00

1232

270

3.80

687

838

24.23

1919

357

10.29

59

2004-05 1319 289 7.06 842 1027 22.55 2161 402 12.61 60 2009-10

1208

265

-8.42

1009

1230

19.83

2217

412

02.59

60 2013-14

1431

314

18.46

1253

1528

24.18

2684

499

21.06

48

Annual Compound Growth Rate

1.80

4.35

2.54

18

3. Development of Upper Primary (Middle) Education

From Table-3 it may be observed that there were only 13,596 upper primary schools in the country

in 1950-1951 and this number continuously increased to 4, 01,079 in 2013-14. The index of upper

primary schools recorded a much higher increase than that of index of primary schools. The annual

compound growth rate of upper primary schools was 5.43 per cent for the entire period of study.

There were 3.1 million children enrolled in upper primary schools in 1950-1951, of which 0.5

million were girls. They constituted only 16.13 per cent of total enrollment. Later the total

enrollment rose to 10.5 million in 1965-1966. The enrollment of girls was 2.8 million, or 26.67 per

cent of the total enrollment. The total enrollment in these schools had increased to 27.3 million in

1985-1986 in which they were 17.7 million boys and 9.6 million girls. The enrollment in upper

primary schools ultimately reached to 65.7 million in 2013-14, of which 32.0 million were girls or

48.71 per cent of the total enrollment. An interesting trend which can easily be observed is that

enrollment of girls has grown at a higher rate than boys during the period of study in upper primary

education. It is emphasized that the index of girls' enrollment in upper primary education is much

higher than that of index of girls' enrollment in primary education. It is a positive sign and shows the

improvement of upper primary education in the country during the study period.

The annual compound growth rate of enrollment of total children in the study period was 4.89 per

cent. It is interesting that the growth rate of enrollment in the case of girls (6.71 per cent) is more

than that of boys (4.08 per cent) over the period.

Table - 3: Enrollment and number of recognized Upper primary schools in India: 1950-1951 to 2013-14



Year Upper Primary Schools

Index

% growth

rate


No. of Boys

enrolled

(11-14 years)

(in million)

Index

% growth

rate


No. of Girls

enrolled

(11-14 years)

(in million)

Index

% growth

rate


Total enrollme

nt

(in millions)

Index

% growth

rate


No. of children

per school

1950-51 13596 100 2.6 100 0.5 100 3.1 100 228

1955-56 21730 160 59.83 3.8 146 46.15 1 200 100.00 4.8 155 54.84 221

1960-61 49663 365 128.54 5.1 196 34.21 1.6 320 60.00 6.7 216 39.58 135

1965-66 75798

557

52.62

7.7

296

50.98

2.8 560

75.00

10.5

339

56.72

138

1970-71 90621

666

19.55

9.4

361

22.08

3.9

780

39.28

13.3

429

26.67

147

1975-76 106571

784

17.60

11

423

17.02

5

1000

28.20

16

516

20.30

150

1980-81 118571

872

11.26

13.9

535

26.36

6.8

1360

36.00

20.7

668

29.37

174

1985-86 134846

992

13.72

17.7

681

27.34

9.6

1920

41.18

27.3

881

31.88

202

1990-91 151456

1114

12.32

21.5

827

21.47

12.5

2500

30.21

34

1097

24.54

224

1995-96 171216

1259

13.05

25

961

16.28

16

3200

28.00

41

1322

20.59

239

1999-00 198004

1456

15.64

25.1

965

0.40

17

3400

6.25

42.1

1358

2.68

212

2004-05 274731

2021

38.75

28.5

1096

13.54

22.7

4540

33.53

51.2

1652

21.61

186

2009-10 394100

2899

43.45

31.7

1219

11.23

27.8

5560

22.47

59.5

1919

16.21

151

2013-14 401079

2950

01.77

33.7

1296

6.31

32.0

6400

15.11

65.7

2119

10.42

164


Total period 5.43

4.08

6.71

4.89

3.1. Student-Teacher Ratio in Upper Primary Schools

As noted earlier, the student-teacher ratio shows the quality of education. Here, we examine the

growth in the number of teachers employed in the upper primary schools in the country during the

period under study. The data are presented in Table-4. It is observed that there were 86,000 teachers

employed in upper primary schools in 1950-1951, of which 13,000 were women, or 15.12 per cent

of the total. By 2013-14 the total number of teachers in upper primary schools increased to 25,

13,000. The number of women teachers reached on all time high in 2013-14(11, 38,000) and they

constituted 45.28 per cent of the total teachers, indicating that women teaching community has

been on the increase all through. One should consider this to be a healthy sign for the reasons (1)

that it contributes to gender equality and (2) that women teachers exhibit care and patience, their

general traits, in teaching children. The number of both in male and female teachers in upper

primary schools shows an increasing trend over the period of our study. The index of female

teachers recorded a much higher increase than that of the male teaches. This may be due to

implementation of reservation policies in some states in the country in favour of women.

The annual compound growth rate of total teachers was 5.41 per cent in the study period. It is

interesting that the recorded growth rate of female teachers at 7.24 per cent was higher than that of

the male teachers at 4.69 per cent in the study period. The growth rates of female teachers have

been higher than that of male teachers in the study.

During the period under study, the increase in the number of teachers was 24, 27,000 (25, 13,000 -

86,000). As the enrollment in upper primary schools showed an increasing trend, it resulted in a

favorable change in student-teacher ratio. It is observed that the ratio was 36:1 in 1950-1951 and it

decreased to 19:1 in 1960-1961. Later the ratio gradually increased to 35:1 in 1995-1996. By 2013-

14 the ratio decreased and stood at 26:1. Anyhow this figure is less than the student-teacher ratio of

40 recommended by the government for aided schools.

Table – 4: Number of Teachers employed by sex in Upper Primary Schools in India: 1950-1951 To 2013-14(In 000s)


Year

Male

Index

% growth

rate over

previous period

Female

Index

% growth

rate over

previous period

Total

Index

% growth

rate over

previous period

Student-teacher

ratio

1950-51

73

100

13

100

86

100

36

1955-56

132

181

80.82

19

146

46.15

151

175

75.58

32

1960-61

262

359

98.48

83

638

336.84

345

401

128.48

19

1965-66

389

533

48.47

139

1069

67.47

528

614

53.04

20

1970-71

463

634

19.02

175

1346

25.90

638

742

20.83

21

1975-76

554

759

19.65

224

1723

28.00

778

905

21.94

21

1980-81

598

819

7.94

253

1946

12.95

851

989

9.38

24

1985-86

663

908

10.87

305

2346

20.55

968

1125

13.75

28

1990-91

717

982

8.14

356

2738

16.72

1073

1248

10.85

32

1995-96 756 1036 5.44 409 3146 14.89 1165 1355 8.57 35 1999-00 829 1136 9.66 469 3608 14.67 1298 1509 11.42 32 2004-05

992

1359

19.66

597

4592

27.29

1589

1848

22.42

32

2009-10

1014

1389

2.22

764

5877

27.97

1778

2067

11.89

33

2013-14

1375

1884

35.60

1138

8754

48.95

2513

2922

41.34

26


4.69

7.24

5.41

20


4. Growth of Secondary Education in India

The importance of secondary education was recognized long ago in India. The Kothari

Commission emphasized the importance of secondary education. The resolution adopted by the

Government of India on the Kothari Commission affirms that. Educational opportunity at the

secondary (and higher) level is a major instrument of social change and transformation' (NCERT,

1970: xix). Secondary education occupies a critical position in the entire educational structure and

is described by many as 'the lintel of the entire educational edifice' (NIEPA, 2001: v). It critically

provides links between various sub sectors of education such as elementary education, higher

education, vocational and technical education besides work. It has been further observed that

secondary education takes place at the critical stage of adolescence; when attitudes to life and work

are being shaped.

4.1. Growth of Schools and Enrolment of Students in Secondary Education

In Table-5, the growth of the number of secondary schools and the enrollment into secondary

education, and the number of students per school for selected years during the period of our study is

provided. The First Five Year Plan (1951-1956) began on 1st April, 1951. At the beginning of the

First Plan in 1950-1951, there were 7,416 secondary schools in the country. This figure increased to

2, 26,613 in 2013-14. These figures include high schools, higher secondary schools, intermediate

colleges, Junior colleges, community colleges and PUC sections wherever they exist. The index of

growth taking 1950-1951 as the base shows that the increase is not substantial as compared to the

enrollment of students in secondary schools. As per the percentage growth rate over previous

period in the case of secondary schools, the growth of the schools in the period 1951-1961 is the

highest record i.e., 133.67. The table shows that the growth rate of schools for the period from

1950-1951 to 1970-1971 are much higher than that of the remaining period of our study. The annual

compound growth rate of schools is recorded 5.49 per cent.

The total enrollment in secondary stage in the year 1950-1951 was 15 lakhs students of which 13

lakhs were boys and only 2 lakhs were girls. Girls constituted only 13 per cent to the total

enrollment. The total enrollment had increased gradually and reached to 591.00 lakhs in 2013-

2014. The enrollment of girls was 279.00 lakhs which constituted 47.21 per cent of the total

enrollment.

An interesting trend which can be observed is that enrollment of girls has grown at a higher rate than

that of boys during the entire period of our study. The annual compound growth rate of total

enrollment at secondary stage was 5.91 per cent. The growth rate was 8.02 per cent for girls and

5.09 per cent for boys during the study period. The enrollment of girls has increased at a faster rate

than that of boys throughout the study period.


Table-5: Number of Recognized Schools and Enrollment by Sex in Secondary Schools in

India, 1950-1951 to 2013-2014

Sources: 1.Annual reports of Ministry of Human Resource Development, Government of India 2. Selected Educational Statistics, Ministry of Human Resource Development, Government of India.

4.2. Student-Teacher Ratio in Secondary Schools

So far, we have examined the size and growth of secondary education in the country for a period of 64 years. But, they do

not really indicate the quality of education. One indicator of the quality is the student-teacher ratio. So, as a first step we

examine the number of teachers employed in the secondary schools in the country and the rate of growth of the teachers

by sex during the period of the study.

Table- 6 shows that there were 1, 27,000 teachers in secondary schools in 1950-1951 of which only 20,000 were women,

and they constituted only 16 per cent to total. The total teachers increased gradually over a period of time and reached to

30, 72,000 in 2013-2014 of which 14, 24,000 were women and they constituted 46.35 per cent to total teachers. The index

of female teachers increased at higher rate than male teachers throughout the period under study. The annual compound

growth rate of total teachers between 1950-51 and 2013-14 was 5.10 per cent. The growth rate was 6.89 per cent for

female teachers and 4.37 per cent in the case of male teachers. Reservation policies in some states in the country must

have favored women to form increasing part of the total teachers. The number of teachers has not been increasing in the country in consonance with the increase in the number of students

enrolled. This has resulted in the increase in the student-teacher ratio over time except in 1960-1961, 1970-1971, 1999-

2000 and 2013-2014. The ratio was 12:1 in 1950-1951, 11:1 in 1960-1961 and 10:1 in 1970-1971. Later it increased


Year

Second-ary

Schools (units)

Index

% growth

rate over

previous period

No. of boys

enrolled

(lakhs)

Index

% growth

rate over

previous

period

No. of girls

enrolled

(lakhs)

Index

% growth

rate over

previous

period

Total enroll-ment

(lakhs)

Index

% growth

rate over

previous

period

No. of children per

school

1950-51 7416 100

-

13

100

-

2

100

-

15

100

-

2021960-61 17329 234

133.67

27

208

107.69

7

350

250.00

34

227

126.67 196

1970-71 37051 500

113.81

49

377

81.48

17

850

142.86

66

440

94.12 1781980-81 51624 696

39.33

76

585

55.10

32

1600

88.23

108

720

63.64 2091990-91 78619 1060

52.29

140

1077

84.21

69

3450

115.62

209

1393

93.52 2661992-93 84086 1134

6.95

150

1154

7.14

77

3850

11.59

227

1513

8.61 2701995-96 98134 1323

16.71

161

1238

7.33

88

4400

14.28

249

1660

9.69 2541999-00 116820 1575

19.04

172

1323

6.83

110

5500

25.00

282

1880

13.25 2412004-05 152049 2050

30.16

217

1669

26.16

154

7700

40.00

371

2473

31.56 2442009-10 193880 2614

27.51

268

2062

23.50

217

10850

40.91

485

3233

30.73 2502013-14 226613 3056

16.88

312

2400

16.42

279

13950

28.57

591

3940

21.86 260Annual

compound growth

rate

5.49

5.09

8.02

5.91

22

gradually and reached 17:1 in 1995-1996. It is increased and stood at 21:1 in 2013-2014 and then

decreased to 19.1 in 2013-14. This figure is less than the student-teacher ratio recommended by the

government. One should consider this to be a healthy sign.

Table-6: Number of Teachers Employed by Sex in Secondary Schools in India, 1950-1951 to 2013-2014

Sources: 1.Annual reports of Ministry of Human Resource Development, Government of India. 2. Selected Educational Statistics, Ministry of Human Resource Development, Government of India

5. Conclusions

Our data on the trends in the enrollment of children at the primary level showed that it was not

commensurate with the growth of population in the relevant age group, notwithstanding the fact

that universalization of primary education has been the avowed objective of the government. The

quantitative growth of enrollment has been faster in the case of girls than in the case of boys

throughout the period of six and a half decades in both primary and upper primary and secondary

education. Besides, the enrollment of students has increased at a higher rate than the number of

schools and teachers.

As regards upper primary education the situation has been relatively better as compared to primary

education. Even the student-teacher ratio on an average for the latest year of the survey is 26:1.


Year Male (000s)

Index % growth rate


Female (000s)

Index % growth rate over

previous period

Total (000s)

Index % growth rate over

previous period

Student-Teacher

Ratio

1950-51 107 100 20 100 127 100 12 1960-61 234 219 118.69 62 310 210.00 296 233 133.07 11 1970-71

474

443

102.56

155

775

150.00

629

495

112.50

10

1980-81

658

615

38.82

254

1270

63.87

912

718

44.99

12

1990-91

857

801

30.24

416

2080

63.78

1273

1002

39.58

16

1992-93

908

848

5.95

445

2225

6.97

1353

1065

6.28

17

1995-96

982

918

8.15

511

2555

14.83

1493

1175

10.35

17

1999-00

1142

1067 16.29

578

2890

13.11

1720

1354

15.20

16

2004-05

1282

1198 12.26

801

4005

38.58

2083

1640

21.10

18

2009-10

1432

1338 11.70

898

4490

12.11

2330

1835

11.86

21

2013-14

1648

1540 15.08

1424

7120

58.57

3072

2419

31.85

19

Annual compound

growth rate

4.37

6.89

5.10

This no doubt augurs well for upper primary education. There is, however a further need to effect

improvements in upper primary education.

In the case of secondary education our data on the trends in the enrollment shows that enrollment in

the case of girls is progressing faster than in the case of boys throughout the period of the study. The

enrollment of students has increased at higher rate than the number of schools and teachers. To

reflect upon the quality of education we arrived at student-teacher ratios. Let it be told that the

significance of women teachers has been increasing over time and this should contribute positively

to the growth and development of students.

5.1. Suggestions

(A) Suggestions for improving Elementary Education

The following steps may improve enrollment and retention and reducing the dropout rate.

1) Government should start or extend pre-primary schools and / or Nursery schools like Anganwadi or Balwadi centers wherever necessary especially in backward areas.

2) Mid-day meal or school nutrition programme should be started on a large-scale again and maintained by specially chosen persons. It can be an effective instrument in universalisation of elementary education.

3) Sanction of scholarships and providing fee concession to those scheduled caste and scheduled tribes children who got admitted in un-aided private schools or convents goes a long way and brings back these poorer strata into the fold.

4) Free supplying and distribution of textbooks and notebooks and school uniforms for all children as being done should be carried out more vigorously, plugging the loopholes.

5) Making community mobility which educates parents to understand need for education of their children.

(B) Suggestions for improving Secondary Education

1. Construct public schools;

2. Pilot innovative public-private partnership models;

3. Introduce double-shift teaching;

4. Expand use of open learning and new technologies;

5. Invest in curriculum revision

6. Invest in ICTs;

7. Develop and apply clear teacher performance standards, and decentralise teacher recruitment to district or school level;

8. Increase schools' autonomy and parental involvement;

9. Reform Grant-in-Aid;


24

10. Provide financial and in-kind assistance for poor and disadvantaged students; and

11. Provide financial incentives and technical support for states.

References

l Bana Bihari Mishra (2004) “Environmental awareness of secondary school students with

reference to their intelligence and school background.” Journal of All India Associate for

Educational Research Volume .18, No.1&2, 2006.

l Chickermane, D.V. (1962): “A study of wastage in primary education”, Education and

Psychology Review, Vol.II, January.

l Dan H. Cooper and Harvey N. strens (1973), “ Team Teachinig: Student Adjustment

and Achievement”, The Journal of Educational Research, Volume 66, Number 7, (March

1973). PP. 323-327.

l Education Commission, (1964-66) Education and National Development, New Delhi:

Ministry of Education. Govt. of India.

l Gopinathan Nair, P.R (1981): Primary Education, Population growth and Socio-Economic Change, Allied Publishers, New Delhi.

l Government of India (1952-53): “Report of the Secondary Education Commission”, Ministry

of Education, New Delhi.

l Government of India (1986 & 1992): “National Policy on Education (NPE)”, 1986 and its revised version – 1992, MHRD, New Delhi.

l Government of India (1994): “Development of Education in India (1993-94)”, MHRD, New

Delhi.

l Govind, R. and Varghese (1992): “Quality of Primary Education: An empirical study”

Journal of Educational Planning and Administration, Vol. 6, No.1, January, New Delhi.

l Goyal, J.C. Ravikanta Chopra (1990): “The Elementary School Teacher-A Profile”, NCERT, New Delhi, 1990.

l Naik, J.P. (1971): Elementary Education in India – A Promise to Keep, Allied

Publishers, Bombay.

l NCERT (1985), “National Curriculum for Primary and Secondary Education: A

framework”, December, New Delhi.

l Pulla Rao, D. (1998): Economics of primary education, Rawat Publication, Jaipur.

l Saini, S.K. (1980): “Development of Education in India”, Cosmo Publishers, NewDelhi.

l Tilak, J.B.G. (1995): “Elementary Education in India – problems and Perspective” , Margin, Vol.27, July-September, pp.387-407.


Understanding Perception of Middle Class

Citizens Towards Demonetization

Dr. Tejash Pujara

Faculty of Management Studies,

C. U. Shah University,

Surendranagar-Ahmedabad State Highway,

Nr. Kothariya Village,

Wadhwan – 363 030


Deval Oza

Faculty of Management Studies,

C. U. Shah University,

Surendranagar-Ahmedabad State Highway,

Nr. Kothariya Village,

Wadhwan – 363 030


ABSTRACT

t evening on November 08, 2016, Tuesday

AG o v e r n m e n t o f I n d i a a n n o u n c e d t h e

demonetization of existing notes of Rs 500 and Rs

1000. Various reasons were cited by the Government to

justify this step e.g. black money, money laundering, fake

currency, terror funding, inflation... After this announcement,

people faced many problems in exchanging old notes,

withdrawing money from bank and ATMs, many tragic

incidents also took place. In order to understand citizen's

perception towards demonetization, problems faced by them

and kind of service they have received from banks and post

office; this survey was conducted in the city of

Surendranagar, Gujarat, India. Respondents were asked to

give their opinion about likely benefits of demonetization,

their experience of service provided by banks and post offices

and usefulness of information received from the media. It was

found that though majority of the respondents supported the

decision of demonetization, there were not sure of its benefits

as claimed by the Government. Overall they were happy with

the support received from the banks and post offices.

KEY WORDS: Demonetization


26

INTRODUCTION

It is not an uncommon fact that India, as a Nation has been fighting against Poverty, Corruption,

Terrorism and illiteracy since decades by now. At evening on November 08, 2016, Tuesday, in a

long 40 minutes speech, Prime Minister, Mr. Narendra Modi announced the demonetization of

existing notes of Rs 500 and Rs 1000. Demonetization is the act of stripping a currency unit of its

status as legal tender. So basically, from next day onwards, every 500 and 1000 rupee note stood

just as a mere paper if not exchanged/deposited at banks. There are quite a few significant reasons

behind this huge step. According to Economic Times. They are:

1. To tackle the black money in the economy.

2. To lower the cash circulation in the country that is directly related to corruption.

3. To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.

1.1 SOME HIGHLIGHTS:

1. Subsequently, all the banks were closed for public work on Novermber 09, 2016.

2. ATMs were put out of function for 9th and 10th November. 2016. Internet banking, cheque and demand draft transactions remained completely unaffected.

3. The last date to exchange the old notes of Rs 500 and Rs 1000 is December 30, 2016 or can be exchanged with RBI till March 31, 2016 after filling up a declaration form.

4. The upper limit to withdraw and is Rs 2000 from ATM Rs 24000 in a week from banks.

5. The exchanges can be made at Banks, Post offices and sub-post offices.

6. The new 500 and 2000 Rupee notes were introduced for circulation.

The citizens were left stunned by the move. It came real confidential. Apparently, there was a kind

of mixed reaction in the country. Social media came flooded with verses of appreciation and cries &

rants as well. Opinions, suggestions, inferences, tweets, and discussions took the lead. Where we

saw people flushing out their black money in rivers, we also pained the loss of several citizens who

lost their lives unable to cope up long queues and the lack of physical facilities. Despite the

announcement, many hospitals refused to take old currency notes resulting in tragedies. We

recorded good amount of black money reaching the banks as well. The coin will always have two

sides.

Having said this, the purpose of the study is to study the perception of the citizens of Surendranagar

on Demonetization. The study will help us understand how far the citizens believe that this move

will help in fulfilling the objectives, announced by the Prime Minister. The study also takes into

consideration, the experience of respondents towards banks, post offices and ATM services post

Demonetization.


2.0 OBJECTIVES

Objectives of this study were:

l To study citizen's perception of Demonetization and its likely benefits.

l To study citizen's experience of service of Bank, Post office and ATM after announcement of demonetization.

l To study citizen's perception of information (about demonetization) provided by various media.

The study was conducted in Surendranagar city; headquarter of Surendranagar district of state of

Gujarat. The data were collected from November 23, 2016 to December 08, 2016 which is after 15

days of announcement of demonetization. It was assumed that by this time majority of the people

have formed their opinion about demonetization and should have visited Bank, Post office or ATM

for monetary transaction.

3.1 SAMPLING DESIGN

POPULATION:

Population comprised of middle-class and lower middle-class adult citizens of Surendranagar city.

SAMPLE SIZE:

342

SAMPLING TECHNIQUE:

Non probability convenience sampling

3.2 INSTRUMENT:

The data was collected through structured questionnaire. Questionnaire was prepared in Gujarati

language. Prior to data collection, questionnaire was pretested to ascertain the appropriateness of

format, language, meaning of statements and time required to answer the questions.

Questionnaire is divided into four parts:

l The first part inquires about perception of respondents of likely benefits of demonetization.

l The second part studies experience of respondents with Banks, Post offices and ATM post demonetization.

l The third part inquires about perception of respondents of helpfulness of information provided by media.

l The fourth part intends to capture the demographic information of respondents.


28

3.3 Data Collection Method:

To collect the data from people leaving in different areas of the city, 350 questionnaires were

distributed to students and faculty members residing in different areas of Surendranagar city and

requested to collect data from, particularly, middle class and lower middle class people engaged in

different occupation.

Total 342 filled up questionnaires were received leading to response rate of 98%.

4.0 ANALYSIS

Data has been obtained from various segments. Respondents are deliberately chosen from middle

class people because they are the ones who are majorly affected by demonetization in terms of

hardship faced to avail the banking services. .

Total questionnaire distributed 350 Filled questionnaire received 342 Response rate 98%

Table 1: Respondents by Gender

Gender Number Percentage

Male 219 64 Female 117 34 No Response 6 02 Total Respondents

342

Table 2: Respondents by Profession

Profession Number Percentage

Employee 68 20 Trader – Medium 62 18 Home maker 58 17 Students 56 16 Trader – Small 44 13 Lari - Gallla 36 11 Sundry worker 16 5 No Response 2 1 Total Respondents

342


74% of the respondents agreed with the stand of Demonetization of Government of India, 23%

disagreed while 3% of the respondents were undecided. 70% respondents believed that in the long

run demonetization will help economy. 60% respondents agreed that this move will improve India's

prestige at international level.

The primary objective as stated by Prime Minister behind this move was to curb the menace of

black money in the economy but the opinion of the respondents is seen to be little unaligned with it.

58% though believed that the move will help in tackling black money, 42% respondents feel

otherwise.

About 65- 67% of the respondents felt that this stand will lead to reduction in cost of land, gold and

other commodities. Again, about 42% from the chunk of respondents believe that it will neither

help eliminate dodgy money used to fund terrorism, nor will it help us curtail Hawala (Hundi)

business in the country. 51% of the respondents however believe it will help reducing fake money

in the economy.

4.2RESPONDENTS' EXPERIENCE OF BANK, POST OFFICES AND ATM SERVICES

From amongst 342 respondents, majority of the respondents, i.e., 80% visited banks. 275 (80%)

respondents have visited Bank, 77 (21%) respondents have visited Post office and 46 (14%) have

visited both Bank and Post office after announcement of demonetization.

118 respondents out of 275 respondents who have visited bank i.e. 42% choose to identify banks

they have visited. Three respondents have visited more than one bank.

Out of 115 responses, it was found that respondents have visited 24 different banks and three top

visited banks were SBI (23 respondents), Bank of Baroda (17 respondents) and HDFC Bank (15

respondents).Rests of the banks were visited by less than 10 respondents.

Place of Visit for Exchange / Withdraw / Deposit

Number Percentage

Banks

275

80% Post Office

77

21%

Banks and Post office both

46

14%

Table 4: Visit of Respondents to Bank and Post office

Table 5: Purpose of Bank visit: N: 275

Purpose

Number

%

For all purposes

105

38

To exchange old notes

50

18

To deposit money

49

18

To withdraw money

11

4

No Response 60 22


As the table suggest, from over 342 respondents, 64% are males and the rest are females. Talking

about their occupation, 20% of the respondents are employees where as 18% and 17% are Medium

scale traders and housewives respectively. The other 50% are students, hawkers and sundry

workers.

30 Vol. VII, Issue II, August, 2017

4.1

RESPONDENTS’ PERCEPTION ABOUT DEMONETIZATION AND ITS

LIKELY BENEFITS ( N:342)

Table 3: Respondents’ perception about demonetization and its likely benefits (N:342)

Statement

Yes (%)

No (%)

No Response (%)

Do you support the Goventment decision of withdrawing Rs. 500 and 1000 notes?

74

23

3

Do you think this decision will be beneficial in the long run?

70

26

4

Do you think this decision will reduce prices of real estate?

67

29

4

Do you think this decision will reduce prices of gold / silver?

67

32

1

Do you think this decision will reduce prices of commodities?

65

35

1

Do you think this decision will improve image of India at international level?

60

34

6

Do you think this decision will reduce the menace of black money? 58

42

0

Do you think this decision will reduce the menace of terrorism?

58 42 1

Do you think this decision will reduce the menace of money laundering?

54

42

4

Do you think this decision will reduce the menace of fake currencies?

51

46

2

Do you think this decis ion will reduce the menace of corruption?

47

49

4

From total of 275 respondents, more than 70% satisfied with the behavior of bank employees and

the police arrangement at banks. However around 59% respondents said there were no proper

queues for senior citizens and for differently abled people. Almost 71% respondents did not get any

assistance from any social organizations.

As shown in the table, about 30% of the respondents had to wait for more than 3 hours to transact

with the banks, 27% of the respondents spent two to three hours, waiting, at banks. And about 105

respondents could transact within two hours.


Table 6:

Respondents’ (those who have visited Bank)

experience while availing Banking Services after Demonetization.

N:275:

Statement

Yes (%)

No (%)

No Response (%)

Was bank employee’s behavior proper?

77

20

3

Was police arrangement proper?

75

22

3

Were bank employees helpful?

74

23

3

Was queue arrangement proper?

56

42

2

Ware there different queue for senior citizen and differently able people?

39

59

3

Did you get any help from NGOs?

23

71

6

Table 7: Time spent to avail the Banking Services N:275:

Time

Number

%

>3 Hours

82

30

Between 2 to 3 Hours

73

27


57

21

< 1 Hour 48 17

No Response 15 5

From total 77 respondents who visited post office, 44% of the respondents said there were no

proper queues for senior citizens and differently-able people. Again, 60% of the respondents denied

about getting any assistance from any social organization. However, 70% of the respondents said,

the overall behaviour of the employees of post office was good towards them.

32

Table 8: Purpose of Post office visit: N: 77

Purpose

Number

%

To exchange old notes 22 29

For all purposes 17 22 To deposit money 12 16 To withdraw money 4 5 No Response

22 29

Table 9: Respondents’ (those who have visited Post office) experience while availing Post

office Services after Demonetization. N:77:

Statement

Yes (%)

No (%)

No Response

(%)

Was post office employee’s behavior proper? 70

25

5

Was queue arrangement proper?

67

30

3

Was police arrangement proper?

66

29

5

Were post office employees helpful?

65

30

5

Ware there different queue for senior citizen and differently able people?

53

44

3

Did you get any help from NGOs?

31

60

9


As shown in the table, about 18% of the respondents had to wait for more than 3 hours to transact

with the post office while about 33% of the respondents could transact in between one to two hours.

201 (69%) respondents visited ATM after demonetization and at the time of response.

About 33% of the respondents could avail ATM service in between one to two hours, whereas

18% respondents had to wait for more than three hours.

4.3 RESPONDENTS' PERCEPTION ABOUT USEFULNESS OF THE INFORMATION

PROVIDED BY VARIOUS MEDIA

Media Industry has a vital role to play at the time of such drastic changes occurring in the country.

While some of us may believe that media is one of the most manipulating bodies in India, about

56% of the respondents feel that the information they receive from media is useful.However, 30%

of the respondents feel that media leads to more confusions. 13% of the respondents believe that

information is not very useful.


Table 10: Time spent to avail the Post office Services N:77:

Time Number % < 1 Hour 25 32 Between 2 to 3 Hours

18

23


16

21 >3 Hours

13

17

No Response

05

6

Table 11: Time spent to avail the ATM Services N:201

Time

Number

%


66

33

< 1 Hour

51

25 Between 2 to 3 Hours

48

24

>3 Hours

36

18

Table 12: Respondents perception about usefulness of information (regarding demonetization) provided by various media.N:342

Usefulness Number %

Yes

191

56

Created more confusion

103

30

No

43

13 No Response

5

1

34

5.0 CONCLUSION

l Majority of the respondents backed the demonetization decision of the Government.

l Majority of them felt that this decision is good for India in long run. They also believed that it will bring down the prices

l Not many respondents supported Government's claim that it will reduce the menace of corruption, black money, fake currency and terrorism.

l Majority of the respondents experienced good service from bank employees and good Ÿ

l Crowd management by police department. At the same time, they experienced poor queue management at the bank premises. Majority of them did not find separate queues for senior citizen and differently able people.

l As far as post office service is concerned, majority of the respondents are happy with the help rendered by the post office employees. They found police deployment satisfactory and found happy about queue management. Although majority of them did not find separate queues for senior citizen and differently able people.

l Very few percentages of the respondents have received help from any social organization.

l Respondents have to wait for longer hours at banks compared to post office and ATMs.

l On the question of usefulness of the information provided by various media, they gave mixed response. While 56 % of the respondents found information useful, 30 % believed it created more confusion while 13% did not find information useful.

6.0 REFERENCE

l (http://epaperbeta.timesofindia.com//index.aspx?eid=31818&dt=20161109&Ar=1, accesed on 15th November 2016)

l (http://epaperbeta.timesofindia.com//Article.aspx?eid=31805&articlexml=Black-Out-

500-1000-Notes-No-Longer-Valid-09112016001027#, accesed on 15th November 2016)


Composition of India's Foreign Trade since Mid-Nineties

Dr. Jayesh J. Tanna


B. P. College of Business Administration,

Gandhinagar

ABSTRACT

s the economy grows one observes a gradual change

Ain the composition of its foreign trade especially

favouring increasing exports of finished goods

coupled with continuous decrease in imports of consumers

and basic goods. In the light of this the present study attempts

to find out the changes in the composition of India's foreign

trade since the mid-nineties. The study is divided into major

three parts. The first part of the study examines the trend of

India's foreign trade, second part exhibits the analysis of

composition of India's Imports of Principal Commodities,

and the last part studies composition of India's exports of

Principal Commodities. The study has found out that the

India's imports and exports growth rates registered an

increase in Mid-Nineties. With regard to composition it has

been found that the total share of primary products in India's

total exports has gradually declined and that of finished goods

has increased. Study on composition of Imports, it has been

found that the share of petroleum and crude oil as a bulk

import items has been increasing and that of primary and

agricultural products has been declining.

KEY WORDS: Foreign Trade, Imports, Exports and

Composition of Imports and Exports.

JEL Classification: F10, F14, F40


36

1. Introduction

Economists and policy makers across the board have agreed with the opinion that the process of

economic growth is an extremely complex phenomenon that depends on a number of critical

variables the most important amongst them being foreign trade. It is an established fact that the

growth of an economy and its integration with the global economy results from quantifiable trade

relation between the countries. Major economic reforms in India were initiated in 1991 in order to

boost up the trade specialization, accelerating foreign trade volumes with other nations. India, at

present, is marching slightly with her GDP growth from 4.5 to 5.5 after the new governance came in

to force. India has significantly contributed more than 3% through her foreign trade in the world

GDP growth. The economic importance of foreign trade impels researchers to investigate its

composition.

Volume of trade is important as it contributes to economic growth. Similarly, the types of goods

imported and exported are also crucial as they define the rate and nature of development. For

instance import of consumption goods is growth retarding while import of essential raw materials

and capital goods is growth leading. Likewise, export of primary goods yield less income for the

country that the export of industrial finished goods. Export-led growth (ELG) hypothesis

postulates that export expansion is one of the prime determinants of economic growth. The overall

growth of countries can be generated not only by increasing the amounts of labour and capital

within the economy as the classical economists postulates, but also by expanding exports to wider

markets. Moreover, association between exports and economic growth is often attributed to the

positive externalities for the domestic economy arising from participation in world markets. In

view of the above, it is important to examine the composition of imports and exports during the

recent years in India.

2. Review of Literature

A good quantum of research has already been done in the area of foreign trade in general and on

composition of trade in particular India. However, hardly any research has been found in the subject

concerning the changes in the composition from mid-nineties till the recent years. Pillania (2008),

in his study, has demonstrated that the composition of India's foreign trade has been largely

dominated by manufactured goods and services. India's services exports share in global exports is

more than double of that of Indian manufacturing exports. East Asian countries, particularly China

have become a major trading block. There is huge untapped potential for Indian foreign trade in

years to come.

Ozun and Turk (2010) explored various issues on imports and exports of primary goods in Turkey

and have found some leading economic factors that have significant influence on the import and

export Levels of agricultural products in Turkey. Further the research has also emphasized on the

different types of agricultural goods which have contributed more to the import and export of the

country.


The study of Reddy, Prusty and Tanna (2013) has examined the influence of India's public

expenditure on her GDP, exports and imports during the period 1982-83 and 2009-10. With the help

of multiple regression analysis it has been established that there has been a significant impact of

both development expenditure and non-development expenditure of government of India on the

three major indicators of economic performance of the country viz. GDP, exports and imports.

However, the study has not considered the composition of imports and exports.

Prusty and Tanna (2012) have explored foreign Investment as a major growth stimulator for the

growth of Indian Economy with emphases on the role of FI in the development of International

trade. The study has found that foreign investment plays a significant role in the development of

India's Imports and exports. The fact that foreign investment may also influence the composition of

exports and imports for a developing country like India has not been addressed by the study. This

leaves a scope for further research in the area.

According to Prusty and Tanna (2013), Indian economy has evidently gained the status of the most

promising economy in the developing countries group and also as an emerging economy throwing

challenges to even the developed world. Considering the critical issues such as national income

parameters, GDS, GDCF and employment, the paper tries to unfold the fact that there has not been

any marked improvement in the Indian economy during the post reform decades as compared to the

pre-reform period.

3. Objectives

The present has the following objectives.

l To find out the trend of India's foreign trade since mid ninetiesl To examine the composition of India importsl To examine the composition of India exports

4. India's Foreign Trade: An Overview

Foreign trade forms significant contribution in the development of country's resources and

economic welfare thereby achieves the economies of scale. Economies of scale can be achieved

with the help of optimum utilization of resources, systematically defining the boundaries for

domestic and foreign trades, scientifically arranging and organizing the trade components,

developing favorable trade patterns and policies regimes and developing the conducive business

environment. There is no country which does not need economic goods to be consumed. Foreign

Trade is a vital sector of a country's national economy, and contributes substantially to the

economic welfare of the people and the development of resources. Economies of scale and

international specialization as also the fruits of scientific and technological progress in the world

become more easily accessible through the foreign trade. In the context of planned economic

development of developing nations, an appropriate trade policy has become very necessary and

significant. Today no country in the world is self-sufficient in the sense that it does not possess


38

facilities for economical production of all the goods and services that are consumed by its people.

Probably no country can produce all the goods that it needs. Therefore, there is need to trade with

others. Developing countries need more goods to feed a rapidly growing population. Exports can be

a leading sector in growth.

Table-1: Trend of India's Foreign Trade since Mid Nineties(Rupees Billion)

This means that increased earnings from higher marketability of a country's commodities in the

international market would stimulate the indigenous industrial activity in the country. This in turn

brings many distinct benefits, viz., greater utilization of resources, larger employment

opportunities, more foreign exchange, etc. Scholars stated that trade would make the country as a

whole better off. Foreign trade would make an impressive contribution to a country's development.

It is considered to be not simply a device for achieving productive efficiency; but it is also an engine

of growth.

5. Composition of India's Imports

Composition of India's import trade has witnessed a sea change over time. Prior to Independence,

India used to import mostly consumption goods like medicines, cloth, motor vehicles, electrical


Year/ Commodity

Total Imports/All

Commodities

Import Growth in

%

Total Exports/All

Commodities

Export Growth

in %

1987-88

222.44

21.22

156.74

22.53

1988-89

282.35

20.08

202.32

26.85

1989-90

353.28

53.36

276.58

15.05

1990-91

757.51

-58.31

325.58

26.08

1991-92

478.51

24.50

440.42

17.97

1992-93

633.75

13.31

536.88

23.03

1993-94 731.01 18.75 697.51 15.63 1994-95

899.71

26.66

826.74

22.26

1995-96

1226.78

11.69

1063.53

10.49

1996-97

1389.20

9.90

1188.17

8.67

1997-98

1541.76

13.55

1301.01

6.91

1998-99

1783.32

17.15

1397.53

12.41

1999-00

2152.37

6.77

1595.61

21.62

2000-01

2308.73

5.84

2035.71

2.61

2001-02

2452.00

17.50

2090.18

18.08

2002-03

2972.06

17.24

2551.37

13.03

2003-04

3591.08

28.33

2933.67

21.84

2004-05

5010.65

24.13

3753.40

17.76

2005-06

6604.09

21.43

4564.18

20.18

2006-07

8405.06

16.97

5717.79

12.82

2007-08

10123.12

26.35

6558.64

21.99

2008-09

13744.36

-0.78

8407.55

0.57

2009-10

13637.36

18.99

8455.34

26.02

2010-11

16834.67

28.22

11429.22

22.04

2011-12

23454.63

12.26

14659.59

10.35

2012-13

26731.13

#DIV/0!

16352.61

#DIV/0!

Source: Directorate General of Commercial Intelligence and Statistics.

goods, iron, steel, etc. By and large the same trend with regard to composition of imports also

continues for many years after introduction of planning in Independent India. However, with the

passage of time, it is believed that, the import composition would have undergone changes. With a

view to examining the fact, commodity-wise import data have been compiled and presented in

Table-1.

The import composition data of the last 25 years starting from 1987-88 reveal some interesting

observations. The entire imports may be classified into two categories viz. bulk import goods and

non-bulk import goods. Bulk import goods comprise petroleum, crude oil and petroleum goods

whereas non-bulk import goods consist of capital goods, export related goods and others. It is

observed that there has been continuous increase in the import of bulk goods and continuous

decrease in the import of non-bulk goods over last 25 years. Increase in bulk imports has been

mainly contributed by the imports of petroleum and crude oil. Import of consumption goods as a

part of bulk goods has been rather declining. While the import of petroleum and crude oil increased

from 18.18% in 1987-88 to 34.43% in 2012-13, the import of consumption goods declined from

6.65% in 1987-88 to 2.89% in 2012-13. This suggests that India's bulk goods composition has been

favourable for the economy.

Import of non-bulk goods has been declining mainly due to the decline in the imports of capital

goods. Capital goods import has declined from 29.52% in 1987-88 to 18.61% in 2012-13 showing

around 10 percentage point decline in 25 years. This may suggest that India is becoming

increasingly self reliant in terms of supporting its manufacturing growth by using domestically

produced capital goods. Table-2: Composition of Imports in India since 1988


Year/ Commodity

I. Bulk Imports

I.A Petroleum, Crude and Products

I.B

Bulk Consumption

Goods

I.C Other Bulk Items

II. Non-Bulk

Imports

II.A Capital Goods

II.B Mainly Export Related Items

II.C Others

III.

Total Imports/All

Commodities

%

%

%

%

%

%

%

%

1987-88

40.91

18.18

6.65

16.09

59.09

29.52

15.07

14.50

100.00

1988-89

40.45

15.43

6.69

18.33

59.55

24.63

19.13

15.79

100.00

1989-90

40.24

17.75

2.62

19.87

59.76

24.92

18.67

16.17

100.00

1990-91

-

-

-

-

-

-

-

-

-

1991-92

44.11

27.43

1.42

15.27

55.89

21.81

18.45

15.63

100.00

1992-93

44.09

27.05

2.32

14.73

55.91

20.71

18.96

16.24

100.00

1993-94

39.10

24.69

1.40

13.01

60.90

26.79

18.83

15.29

100.00

1994-95

39.51

20.69

3.99

14.83

60.49

26.66

15.06

18.77

100.00

1995-96

39.03

20.52

2.64

15.87

60.97

28.17

14.34

18.47

100.00

1996-97

41.82

25.65

3.10

13.07

58.18

25.35

15.69

17.14

100.00

1997-98

35.65

19.68

3.58

12.40

64.35

23.61

16.66

24.07

100.00

1998-99 31.21 15.10 5.95 10.16 68.79 23.74 16.82 28.22 100.00 1999-00

39.55

25.39

4.87

9.30

60.45

18.05

18.36

24.04

100.00

2000-01

41.19

30.97

2.86

7.37

58.81

17.69

15.95

25.17

100.00

2001-02

39.41

27.23

3.97

8.21

60.59

19.22

16.07

25.30

100.00

2002-03

39.57

28.72

3.93

6.92

60.43

21.98

16.79

21.66

100.00

2003-04

37.70

26.32

3.93

7.45

62.30

23.39

16.27

22.64

100.00

2004-05

38.02

26.76

2.78

8.48

61.98

22.54

15.33

24.11

100.00

2005-06

40.95

29.47

1.85

9.62

59.05

25.25

12.50

21.30

100.00

2006-07

45.46

30.76

2.31

12.38

54.54

25.34

9.62

19.58

100.00

2007-08

44.84

31.68

1.83

11.33

55.16

27.88

8.26

19.02

100.00

2008-09

45.65

30.56

1.66

13.43

54.35

24.04

10.69

19.62

100.00

2009-10

43.47

30.19

3.14

10.15

56.53

22.91

10.88

22.74

100.00

2010-11

40.88

28.65

2.40

9.84

59.12

21.26

14.51

23.35

100.00

2011-12

43.93

31.68

2.38

9.87

56.07

20.27

10.60

25.19

100.00

2012-13

46.70

34.43

2.89

9.37

53.30

18.61

9.54

25.15

100.00


40

The decrease in imports of export related goods is a concern, but may not stand in the way of growth

as long as India's export growth continues. However, a bigger concern in the import composition is

the continuous increase in the imports of other goods. It needs to be checked and be kept under a

limit. The import of other goods increased from 14.50% in 1987-88 to 25.15% in 2012-13 which is

alarming. However, it may not be obstructing till it does not jeopardize the country's economic

growth.

6. Composition of India's Exports

Since independence, composition of export trade of India has also undergone a change. Prior to

independence, India used to export agricultural products and raw materials, like jute, cotton, tea, oil

seeds, leather, food grains, cashew nuts, and mineral products. It also exported manufactured

goods. But with the passage of time export kitty included mostly manufactured items like,

machines, ready-made garments, gems and jewellery, tea, jute manufactures, Cashew Kernels,

electronic goods, especially hardware's and software's which occupy prime place in exports.

Especially since the five year plans were ushered in, India emphasized on exports of finished and

manufactured goods. The focus of the government of India on heavy industrialization in the second

five year plan and also in the subsequent plans has resulted in increasing exports of manufactured

and engineering goods. A close look at the changing scenario of exports in the country since the mid

nineties unfolds certain interesting facts with regard to its composition.

Export composition of India and its trend are shown in Table-3. Data reveals that the export basket

of India is dominated by the manufactured goods followed by the primary goods. However, the

contribution of both the categories of exports has been decreasing since the mid-nineties. Decrease

in the primary goods exports goes in line with the country's progress. This means that the export of

primary goods would have been replaced by the export of non-primary goods. But looking at the

rate of decrease, one may not be very happy. Primary goods exports were 26.14% in 1987-88 which

decreased to 15.37% in 2012-13 meaning that, over a period of 25 years around 10% decrease in the

primary goods exports has taken place which should have been more considering the aggressive

promotion policies for non-primary goods exports followed after 1991. Another observation is that

exports of agricultural and allied goods are far greater than the exports of ores and minerals though

both the exports have been declining. In the manufactured goods category, textile and textile

products, and gems and jewelry contribute largely to India's exports. However, such exports have

been declining throughout. While export textile and textile products declined from 24.93% in

1987-88 to 9.10% in 2012-13, that of gems and jewelry fell from 16.67% in 1987-88 to 14.46 in

2012-13. Contrast to this, export of leather and leather products, chemicals, engineering goods and

other manufactured goods has been increasing over last two and half decades. This means that in

the manufactured goods category of India's exports there has been a change in composition.


Table-3: Composition of Exports in India since 1988


A gradual shift of exports has been noticed from textile and textile products, gems and jewelry and

handicraft products to chemical and engineering goods. To an extent, this change in the

composition of exports may be considered favourable for the economy. Another interesting


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1987-88

26.14

21.18

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67.79

7.98

6.55

9.53

24.93

16.67

1.44

0.69

4.14

1.92

1988-89

23.21

17.30

5.91

72.37

7.52

7.81

11.46

21.74

21.71

1.47

0.65

2.50

1.92

1989-90

23.38

17.17

6.20

72.06

7.05

9.35

12.03

22.55

19.15

1.34

0.59

2.52

2.04

1990-91

23.83

18.49

5.34

71.62

7.99

9.52

12.40

23.93

16.12

1.23

0.43

2.88

1.67

1991-92

23.13

17.93

5.20

73.60

7.10

10.46

12.61

26.27

15.33

1.35

0.48

2.32

0.95

1992-93

20.90

16.92

3.98

75.73

6.89

9.64

13.38

27.01

16.57

1.49

0.75

2.57

0.99

1993-94 22.10 18.11 3.99 74.90 5.84 10.69 13.66 24.61 17.97 1.43 0.70

1.79 1.21

1994-95 19.80 16.05 3.75 77.49 6.12 11.65 13.32 27.03 17.09 1.47 0.81 1.58 1.12

1995-96 22.82 19.13 3.70 74.69 5.51 11.31 13.81 25.26 16.59 1.36 0.84 1.43 1.06 1996-97

24.01

20.50

3.50

73.54

4.80

11.69

14.83

25.80

14.20

1.42

0.80

1.44

1.01

1997-98

21.96

18.93

3.03

75.83

4.73

12.56

15.24

25.85

15.27

1.50

0.67

1.01

1.20

1998-99

20.86

18.17

2.69

77.64

5.00

12.07

13.44

26.69

17.85

1.91

0.69

0.27

1.23

1999-00

17.72

15.23

2.49

80.70

4.32

12.78

13.99

26.67

20.37

1.82

0.74

0.11

1.48

2000-01

15.99

13.40

2.59

77.05

4.36

13.21

15.30

25.33

16.57

1.48

0.80

4.20

2.76

2001-02

16.35

13.46

2.88

76.14

4.36

13.81

15.88

23.29

16.67

1.25

0.89

4.84

2.68

2002-03

16.51

12.73

3.79

76.34

3.51

14.14

17.13

22.04

17.13

1.49

0.90

4.89

2.26

2003-04

15.51

11.80

3.71

75.96

3.39

14.80

19.43

20.04

16.56

0.78

0.96

5.59

2.95

2004-05

16.22

10.14

6.08

72.70

2.90

14.90

20.77

16.23

16.47

0.45

0.98

8.37

2.71

2005-06

15.89

9.91

5.98

70.39

2.62

14.33

21.07

15.91

15.06

0.45

0.95

11.29

2.44

2006-07

15.58

10.04

5.54

67.20

2.39

13.72

23.40

13.75

12.64

0.35

0.96

14.78

2.43

2007-08

16.91

11.31

5.60

63.21

2.15

13.01

22.94

11.92

12.08

0.31

0.80

17.41

2.46

2008-09

13.86

9.59

4.27

67.37

1.95

12.42

25.87

10.95

15.29

0.16

0.73

14.68

4.10

2009-10

14.81

9.95

4.86

64.63

1.89

12.85

21.47

11.14

16.27

0.13

0.88

15.72

4.84

2010-11

13.09

9.65

3.44

62.98

1.56

11.51

23.18

9.66

16.14

0.10

0.84

16.52

7.40

2011-12

15.01

12.25

2.76

60.62

1.57

12.13

22.17

9.16

14.66

0.09

0.83

18.28

6.10

2012-13

15.37

13.52

1.85

61.13

1.62

13.29

21.72

9.10

14.46

0.07

0.87

20.04

3.46

42

observation with regard to changing composition of India's exports is that petroleum goods exports

have been on rise over time and the increase has been quite sharp since 2003-04. One can find a

continuous decrease in the exports of petroleum products till 1999-2000 and then a continuous

increase. This suggests that our export strength in the petroleum sector has been stronger since the

beginning of the twenty first century. To summarize, the composition of exports in India since the

mid-nineties has been showing a favourable change.

7. Conclusion

In view of the importance of international trade in the process of economic development, it is

important to look at the changing composition of imports and exports. India is a fast growing

economy where international trade has been playing a major role. Thus, with the present paper

intended to find out whether there has been any shift in the composition in India's foreign trade

especially since the mid nineties. The study reveals that, over last 25 years, the import basket of the

country has been continuously dominated by the import of bulk goods. On the other hand a

continuously diminishing role has been registered of the import of non-bulk goods. Increase in bulk

imports has been mainly contributed by the imports of petroleum and crude oil. Import of

consumption goods as a part of bulk goods has been rather declining. Striking is the fact that there

has been a gradual decline in the imports of export related goods. However, it may not be a major

concern of growth as long as India's export growth continues. Imports in the other goods category

still remains as a big concern.

India's export composition also reveals some interesting facts. The export basket of the country is

found to be dominated by the manufactured goods followed by the primary goods. However, the

contribution of both the categories of exports has been decreasing since the mid-nineties. As

expected, a gradual shift of exports has been noticed from textile and textile products, gems and

jewelry and handicraft products to chemical and engineering goods. This shows that the

composition of exports in India since the mid-nineties has been favourable.

References

l Pillania, Rajesh K (2008), “An exploratory study of Indian Foreign Trade”, Journal of Applied Economic Sciences, Volume-iii, Issue3 (5), pp 281-292

l Alper and Turk (2010), “Leading Economic Determinants of Foreign Trade Volume in Turkish Agriculture Sector” Agricultural Economics Review, Vol 11, Issue No.1, pp-87-96.

l Reddy, Prusty and Tanna (2013), “Relating Public Expenditure with Trade and GDP in India: An Analytical Note”, Journal of Humanities, Social science & Management, Vol. III, Issue II, AUGUST, 2013, pp- 59-79.

l Prusty and Tanna (2012), “Foreign Investment and Trade Performance in India in the Post Liberalisation Period'” in eds. Foreign Investment and Indian Economy, pp 19-29.

l Prusty and Tanna (2013), “Indian Economy in two decades of Reforms: Some Critical Issues” Journal of Humanities, Social science & Management, Vol. IV, Issue 2, pp-72 – 85.


Eradicate Extreme Hunger and Rural Poverty in Gujarat:

Revisit of BPL Families

Dr. Yogesh N. Vansiya


Department of Economics,

Veer Narmad south gujarat university,

Surat


ABSTRACT

here is significant inequality among various districts of TGujarat, as far as various aspects of development is

concerned. On one hand, there are developed districts

like Surat, Vadodara, Ahmedabad and Rajkot and on the other

hand districts such as Narmada, Bharuch, Dang and Tapi are

economically and socially backward. Especially in the tribal

districts, various socio-economic problems like income

inequality, rural poverty, unemployment, illiteracy etc, are found

to be existing to a large extent. Therefore, it was decided, in the

present study, to know the condition of the BPL (Below Poverty

Line) card holder households. Tapi district, which is one of the

tribal districts of Gujarat state, was selected for the purpose. It

was decided to study the condition of the BPL families declared

by the Government, by revisiting them. The study used the 13

indicators of poverty on which the 2002-03 government survey

of the BPL families was based, to examine the regional situation

regarding extent of povrty prevailing in the rural areas of Tapi

district. Keeping in mind the objectives of the study and various

hypotheses, apart from measures of central tendency and

percentages, statistical techniques such as chi-square test and

correlation analysis were applied. The present study is based on

both primary as well as secondary data. The information on the

BPL families was collected through interviews, group

discussion and questionaries. Some other essential information

was collected through research papers, articles, government

websites and various other reports.

KEY WORDS: Rural Poverty, Hunger, Tapi District


44

SECTION- I

Introduction India has not been able to reduce unemployment and poverty in spite of rapid economic

development that it has achieved. Since the last 67 years, the Government has been constantly

claiming that it has been making continuous efforts to eradicate poverty.The Government spends

crores of rupees every year on the programmes for eradication of poverty and unemployment, but

so far its efforts have not been successful.Not only India, but many countries of the world are facing

many such economic problems at present. The main problems faced by these countries are

population growth, poverty, unemlpoyment and income inequalities.The root of all these problems

is poverty. According to Prof. Ragnar Nurkse,these nations remain poor because the root cause is

poverty.Now a days along with economic development , social aspects (i.e. non-economic factors)

are also given importance in the concept of ' economic development '.Therefore, one can not say

that a particular country is developed just because its national income is high. But along with its

national income, one should also try to determine to what extent the standard of life of its citizens

have improved, so that one can say that the country has really developed. 1Assistant Professor, Department of Economics, Veer Narmad South Gujarat University, Surat. Email: [email protected]

Research Problem

There is significant inequality among various districts of Gujarat, as far as various aspects of

development is concerned. On one hand, there are developed districts like Surat, Vadodara,

Ahmedabad and Rajkot and on the other hand districts such as Narmada, Bharuch, Dang and Tapi

are economically and socially backward. Especially in the tribal districts, various socio-economic

problems like income inequality, rural poverty, unemployment, illiteracy etc, are found to be

existing to a large extent.Therefore, it was decided, in the present study, to know the condition of

the BPL (Below Poverty Line) card holder households. Tapi district, which is one of the tribal

districts of Gujarat state, was selected for the purpose. It was decided to study the condition of the

BPL families declared by the Government, by revisiting them.

Review of Research and Development in the Subject

The study by Jean Dreze and Ritika Khera (2013) is concerned with determining to extent the

public distribution system is useful in reducing rural poverty. One of the main conclusions of the

study is that in Tamilnadu, there was 61 % to 83 % reduction in poverty, while in Chhatisgadh; the

reduction in poverty was between 63 % and %7 %.

Sumit Majmudar and Alok N. Sharma (2013) had presented their paper entitled “ Urban Poverty

and Social Security : Efficiency of the Public Distribution System and Its Effect on Poverty “.This

study tried to examine poverty and the social security situation in Ranchi and Delhi.The study

found positive effects on the welfare of the poor due to the public distribution system. The study


concludes that due to subsidy provided in the PDS, the percentage of poor families in both the

cities has declined by 2 to 3 percent.

Yogesh N. Vansia (2013), found in his study that the percentage of the poor was 13.6 % in the total

rural population, but 61.87 % of the ST families were below the poverty line. Among them, 58.16 %

were' very poor'. This shows that the benefits and opportunities of development have not reached

such families in th etribal areas.Moreover, in this study, the percentage of illiterate families was

high among the STs and the extent of poverty was also high.This goes to show that where ever

literacy is low, the extent of poverty is high.In addition, inverse relationship between landholding

size and poverty was found.

In the paper authored by Kailash Bhoye (2011), the standard of life of the very poor who had very

low rank in terms of wealth, was relatively very low.The local measures provide more realistic

guidance for measurement of rural poverty. One of the important findings of the study is that the

application of 13 indicators selected by the government for identification of the BPL families is

improper and wrong. It does not lead to identification of the real poor.

In a study undertaken by Yogesh N. Vansia and Manish R. Patel (2010), it was found that In the BPL

survey of Gujarat, the poverty ratio was 38.04 % and among the poor the percentage of 'very poor'

was 50.04 %.It was also found that the percentage of the BPL families was 41.43 % in South

Gujarat and among them the percentage of 'very poor' families was 55.57 %, both of which were

more than the corresponding figure for Gujarat.

R Radhakrishna, K Hanumantha Rao, C Ravai, B Sambi Reddy (2004) focus in them paper on

chronic poverty and malnutrition. It analyses the trends in extent, depth and severity of poverty and

also malnutrition in rural and urban areas. They also indicate that the incidence of chronic poverty

is higher than that of very poor in both rural and urban areas but the former is lower than severe

malnutrition. Although the risk of malnutrition decreases with household income elimination of

poverty cannot ensure eradication of malnutrition. The incidence of child malnutrition is

particularly high among poor households where mothers have poor nutritional levels, less

education and poor access to antenatal care. The lowest incidence of child malnutrition is not in the

richest but in the middle income states with progressive social policy.

The eradication of severe malnutrition should be the first priority of social policy and the feeding

programmes should be targeted towards them, especially, women and children. Liberal use of

growth-supplementing, employment-oriented food-for work

V N Misra, M Govinda Rao,(2003) Paper attempts to examine (I) how changes in trade policy

introduced during the nineties have influenced the domestic inter-sectoral terms of trade, being the

mechanism through which the impact of macro policies such as monetary, exchange rate and trade

are transmitted to the agricultural sector; (ii) the impact of terms of trade and trade policy among

others on aggregate crop output and private investment in agriculture over the period;


46

(iii) whether trade policy and devaluation of rupee among others have helped in raising agricultural

exports; and (iv) how the aggregate crop output and terms of trade have influenced rural poverty

and real agricultural wages of unskilled workers over the period.

G S Bhalla, Peter Hazell, (2003), this paper discusses the likely scenarios regarding employment

and income growth in agriculture and non-agriculture in rural and urban areas under various

assumptions about sectoral growth rates and employment elasticities. It is evident that India faces a

problem in generating enough employment in the years ahead to keep pace with the growth in the

labour force as also in raising wages and productivity of workers. Against this backdrop the authors

consider possible strategies for increasing employment significantly reducing rural and urban

poverty by 2020.

Anirudh Krishna, Mahesh Kapila, Mahendra Porwal, Virpal Singh (2003), are indicates in research

paper that in 20 villages of Vadodara and Panchmahals districts of Gujarat. Redirecting such

expenditures toward controlling descent into poverty, especially through providing more

accessible, accountable and affordable health care services, will help much more, in our view, to

reduce poverty in this region of Gujarat. Similar policies will help as well in the region of Rajasthan

that we studied earlier, and also quite likely in a much wider area. The Stages of Progress

methodology described above represents one effort to understand movements into and out of

poverty in terms of a locally relevant understanding of poverty. This methodology has emerged

more robust through being adapted and applied separately in two regions of India, Rajasthan and

Gujarat, and in one region of Kenya. We intend to undertake further Stages-of- Progress inquiries in

villages of Andhra Pradesh starting in January 2004. We welcome readers' suggestions that would

help to improve these investigations.

Jagadish Bhagavati (2002), in his study has stated that due to economic growth, peple's income

increase which bring them above the poverty line.Other benefits that follow from it are, rise in the

literacy rate, increase in the government expenditure on health services and many others.So, in this

paper, emphasis is put on how poverty can be reduced through economic growth and how reforms

can be initiated.In their paper, Dipak Lal, Rakesh Mohan and I. Natarajan (June,2002), concluded that in the

estimates of poverty based on expenditure in the year 1987-88 are much higher than those

calculated by the Planning Commission.This difference has been much greater for the rural areas.

Thus, the poor spend more than what they earn. The reason for which may be that they dissave and

they borrow for meeting their expenditure.Gopal K. Kodekodi (2002), in his study found no strong relation between environmental

degradation and poverty, and there is relationship between economic development and

environment, while population growth adversely affect environment.Increasing poverty also

negatively affect environment. But damage to environment makes life of the poors more difficult.

No clear relation was found between quality of environment and population growth.


(Ahluwalia 1978; Ninan 2000; Datt and Ravallion 1998), intuitively, one can see that the

agricultural sector affects the rural poor in several ways. First, higher agricultural output helps

reduce food prices and improve food availability, both of which help the poor. Second, it creates

employment opportunities in the agricultural sector and, through linkages, enhances growth in the

non-agricultural sector.

According to the study of Mehabub-ul-Haque (1998), more than 50 crore people of the South Asia

were experiencing “absolute poverty”, 26 crore persons do not have access to the most primary

services, 33.7 crore persons do not get pure drinking water, there is no sanitation facility for 83

crore people and 39.6 crore persons can not read or write.

Datt and Ravallion (1998), argue that while high agricultural growth is crucial to rural poverty-

reduction, non-agricultural economic growth is also important. It is a fact that many people in the

rural areas are engaged in non-agricultural employment. Moreover, the large literature on dualistic-

development models suggests that there is a reasonably strong link between the non-agricultural

sector and the agricultural sector. They explain that the impact of non-agricultural growth on rural

poverty is enhanced by progress in human-resource development and other facets of rural

development.

Objective of the Study

1. To know (on the basis of the BPL survey), the economic and social situation of the BPL families through revisit.2. To examine the relationship between the level of education of the BPL families and the size of landholding with incidence of poverty.3. To make a preliminary study of the BPL families having large or medium size of land holding and having high level of education and to make restudy of BPL measurement and to find out the reasons why such families were included among the BPL families.

Hypothese of the Study

1. There is no relationship between the education level of the most educated person in the family and level of savings.2. There is no relation between the BPL score of the family and its expenditure on health.

Research Methodology

Data Collection

The present study is based on both primary as well as secondary data. The information on the BPL

families was collected through interviews, group discussion and questionaries. Some other

essential information was collected through research papers, articles, government websites and

various other reports.


48

Data Analysis

The study used the 13 indicators of poverty on which the 2002-03 government survey of the BPL

families was based, to examine the regional situation regarding extent of povrty prevailing in the

rural areas of Tapi district.

The collected data were used for constructing various tables and drawing useful conclusions, for

which computer softwares like Excel and SPSS were used. On the basis of these tables and

statistical tests some useful conclusions were derived which gave an idea about the social and

economic condition of the BPL families. Keeping in mind the objectives of the study and various

hypotheses, apart from measures of central tendency and percentages, statistical techniques such as

chi-square test and correlation analysis were applied.

Measurement of Poverty

To measure poverty different types of calculation have been used. Measures like “head count

ratio”, “mean poverty gap”, “income gap ratio”, “Gini coefficient” and “Sen Index” are included,

the UNDP has started regularly measure human poverty index (HPI) since 1997 and in 2011 HDRs

measure multidimensional poverty. In India multidimensional poverty is 53.7 % (Headcount).

Generally poverty is measured by using the tool “head count ratio”. With this tool it is very difficult

to get the details about the intensity of poverty among the poor. The variation in the income of

people below the poverty line is essential to study the problem of the poor. To measure the intensity

of poverty the head count ratio is absolute, hence other measures relative of poverty like “Gini

Coefficient” and “Sen Index” have been taken into consideration. 2 The poverty headcount ratio is the proportion of the national population whose incomes are below the official threshold (or thresholds) set by the national

government. National poverty lines are usually set for households of various compositions to allow for different family sizes. Where there are no official

poverty lines, they may be defined as the level of income required to have only sufficient food or food plus other necessities for survival

3 The mean distance below the poverty line as a proportion of the poverty line where the mean is taken over the whole population, counting the non-poor as

having zero poverty gap. That is the mean shortfall from the poverty line (counting the non poor as having zero shortfall), expressed as a percentage of the

poverty line.

4 The Gini coefficient is usually defined mathematically based on the Lorenz curve,The Gini coefficient can range from 0 to 1; it is sometimes multiplied by

100 to range between 0 and 100. A low Gini coefficient indicates a more equal distribution, with 0 corresponding to complete equality, while higher Gini

coefficients indicate more unequal distribution, with 1 corresponding to complete inequality.

5 Given the multiplicative decomposition of the Sen index into three commonly used poverty statistics – the poverty rate (poverty incidence), poverty gap

ratio (poverty depth) and 1 plus the Gini index of poverty gap ratios of the poor (inequality of poverty) – the index becomes much easier to use and to

interpret for economists, policy analysts and decision makers. Based on the recent findings on simultaneous subgroup and source decomposition of the Gini

index, we examine possible further decompositions of the Sen index and its components for policy analysis.

In Present study we have taken the BPL Census from Ministry of Rural Development, Government

of India conducts BPL Census at the beginning of each five-year plan. The methodology has been

changed to identify the families below poverty line. The latest methodology is based on 13

socioeconomic indicators, indicting the quality of life and by score-based ranking for all

households. Each of the indicators has 0 to 4 marks. Thus, for 13 indicators, the tentative marks

obtained by the families are from 0-52 for all the districts. Families scoring 0 to 20 are categorized

as poor and those who score between 0 to 16 are identified as extreme poor families. In Presen


Present study we take BPL survey definition for rural poverty; it is served by GOG in 2002-2003.

Selection of the Sample

The families that were selected for the BPL survey conducted by the Ministry of Rural

development, Government of India in 2002, were considered as the universe and a sample was

selected from it. According to the BPL survey,the families having a score between 0 and 20 were

called “ poor “ and those with a score between 0 and 16 , were called “ very poor “. (Each indicator

was given marks between 0 and 4). In this study, some BPL families having some members with

higher education and large land holding were also included.

From the BPL families having at least one member with graduate or post-graduate level of

education and also having 2 to 5 hectares or more of unirrigated land or 1 to 2.5 hectares of irrigated

land, 50 % of the BPL families were selected in the sample.Thus, 114 families in all were selected in

the sample.

SECTION-II

Demographic Characteristics of the Selected Families

On the basis of the data collected in the survey, it was found that there were 930 females per 1000

males. This figure is less than the sex-ratio in Tapi district as per the census figures.The average

family size was about 6. The percentages of men and women were 52 and 48 respectively, in the

total population. 30.17 % of the total population is 'dependent', i.e. the percentage of working

population is 69.83. It is worth noting here that many of the children and old are also engaged in

economic activities.

Educational Characterstics of the Respondents

According to the information collected from the BPL families of Tapi district in 2014-2015, 7.0 %

of the members were illiterate. 17.5 %, 28.9 %, 16.7 % and 7.0 % families had some member who

had studied upto primary level, secondary level, graduate level and post-graduate level

respectively.

In this study, the BPL families having 0 to 16 points and having at least one member who was

educated upto graduate or post-graduate level were selected. According to the BPL survey

conducted by the Rural Development Ministry in 2002-2003, there were 70 families having at least

one member who is / are educated upto graduate or post -graduate level. However, in the present

survey, only 20 such families could be found.This shows that there has been a serious lapse in

collection of information during the original BPL survey. There may be several reasons for this

mistake such as : (1) the interviewer might not have really met the actual family (2) family members

might have given wrong information, (3) village leaders (Sarpanch, Postman, Gram sevak) might

have given wrong information, (4) error at the time of making entry. It seems from the present

survey that due to the above mentioned reasons, such a large difference was found in the two figures


50

Educational Status of Children of the Selected Families

Children of 4.4 % families did not attend school and were working. In 14.9 % of the families,

children go to school and work as well, and in 18.4 % families, children attend school and did not

work.

It was also found during the survey that the children of the highly educated parents go to school, and

usually they are not engaged in any economic activity. Thus, the educated parents have more

awareness about the importance of education. It was also found that there is a significant relation

between the education level of the most learned member of the family and the BPL score of the

family, i.e.where education level is high, the BPL score is less.

Land Holding of the Selected Families

Type of Land Owned By the Respondent Families

Percentage of unirrigated land owned by the families selected in the sample was higher than that of

the irrigated land. Examining the land holding pattern of the selected families, it was found that

18.04 % families were landless, there were 26.3 % families who owned less than 1 hectare of

unirrigated land or 0.5 hectares of irrigated land, and 40.4 % of the families owned 1 to 2 hectares of

unirrigated land or 0.5 to 1 hectare of irrigated land.

In this study, the families with BPL score of 0 to 16, and owning 2 to 5 hectares or more of

unirrigated land or owning 1 to 2.5 hectares of irrigated land were selected, out of which 44 families

had unirrigated land of 2 to 5 hectares or more or irrigated land of 1 to 2.5 hectares or more,

according to the BPL survey of the Ministry of Rural Development which was conducted in 2002-

03. But, during the survey of this study, in reality only 17 families owned 2 to 5 hectares or more of

unirrigated land or 1 to 2.5 hectares or more of irrigated land. And the remaining 27 families did not

own 2 to 5 hectares or more of unirrigated land or 1 to 2.5 hectares or more of irrigated land.

During the survey, 11 families were found to own 2 to 5 hectares or more of unirrigated land or 1 to

2.5 hectares of irrigated land or more. So there seems to be wide variation in the number of such

families in the previous and present surveys.

Usually, many factors are related to land holding. In this study, the relationship between the

education levels of the most educated family member and land holding ie examined. Examining the

data on the land holding of the illiterate families, it was found that there were 50 % families who

owned less than 1 hectare of unirrigated land or less than 0.5 hectares of irrigated land. 37.5 % of

them had 1 to 2 hectares of unirrigated land or 0.5 to 1 hectare of irrigated land. 30 % of the families

had unirrigated land upto 1 hectare or irrigated land of less than 0.5 hectares.

The present study also tried to explore the relationship between land holding size of the family and

it BPL score. A negative correlation was found between the two, i.e.higher land holding size was

associated with low BPL score. However, this relationship was of low significance.


Income Level of the Selected Families

Most of the selected families are farmers. Apart from farming, they are also engaged in the

secondary occupations like animal husbandry, casual labour,service etc. 26.3 % families were

engaged in farm labour and 16.7 % were casual labourers, and 3.5 5 of them were in some service.

Food Security of the Selected Families

Eventhough “food security” has been accepted as one of the important objectives of planning in

India, the situation regarding this has been found to be very grim in the backward tribal areas. In the

present study, the findings in this regard have been summarized in the table given below

On examining the data provided in the above table, it is evident that there are 6.1 % families in the

sample, who do not get food that is sufficient even for 1 meal per day on most of the days of a year.

The percentage of families who usually get 1 meal a day, but occassionally have less than 1 meal a

day is 12.3 % and 40.4 % of the families get sufficient food during the entire year. However, there

were also 38.6 5 families who get 2 meals a day during the whole year, but with occassional

shortage of food. Now, insufficient food intake is an indicator of malnutrition and poor health

condition suggests low human development.

Generally, there is a definite relationship between education status and the degree of food security

of the family. It is understandable that more educated family enjoy a higher degree of food security.

While examining the relationship between the level of education of the most learned family

member and the degree of food security, the following result was obtained.


Table 1: Classification

of Families Accorging to Level of Food Security

Item

Frequency

Percentage

Families getting less than 1 meal per day on most of

the days of the year 7

6.1

Families usually getting 1 meal daily but occasionly having less than 1 meal in a day

14 12.3

Families having 1 meal daily throughout the year 3 2.6 Families having 2 meals daily ,

but occassional shortage

of food

44

38.6

Families having sufficient food throghout the year

46

40.4 Total

114

100.0

Source

: Data collected During the Survey.

52

In the above table, the relation between educational level and food security is depicted. As far as the

illiterate families are concerned, there were 25 % of them who did not sufficient food for 1 meal

during most of the year, while 75 % had 2 meals with occassional shortage of food. Among the

families with at least one member educated up to the primary level, there were 35 % families who

get 1 meal a day, but occassional shortage of food and 40 % of them got 2 meals a day during the

year with food shortage on some days. Looking at the position of the families having at least 1

member who is educated upto higher secondary level, it is found that 63.03 % of them had sufficient

food during the year, while 6.1 % of them had less than 1 meal a day for most of the year.

Number of Dresses owned by the Selected FamiliesThe present study also tried to find out how many pairs of usual dresses are owned on an average by the selected families. The relevant data are shown below


Table 2:

Classification of Families According to the Level of Education of the Most Learned Family Member and Degree of Food Security

Item

Less than one square meal per day for major part of the year

Normally, one square meal per day, but less than one square meal occasionally

One square meal per day throughout the year

Two square meals per day, with occasional shortage

Enough food throughout the year

Total

Illiterate 2 (25.0)

0 (0.0)

0 (0.0)

6 (75.0)

0 (0.0)

8 (100)

Primary

(Std.7)

0 (0.0)

7 (35.0)

1 (5.0)

8 (40.0) 4

(20.0) 20

(100) Secondary

(Std.10)

1

(3.8) 4

(15.4) 0

(0.0) 14

(53.08) 7

(26.9) 26

(100) Higher secondary

(Std.12)

2

(6.1)

1

(3.0)

1

(3.0)

8

(24.2)

21

(63.6)

33

(100)

Graduation/ professional

2

(10.5) 2

(10.5) 1

(5.3) 6

(31.6) 8

(42.1) 19

(100) Postgraduate/professional

0

(0.0) 0

(0.0) 0

(0.0) 2

(25.0) 6

(75.0) 8

(100) Total

7

(6.1) 14

(12.3) 3

(2.6) 44

(38.6) 46

(40.4) 114

(100) Source:

Data collected during the survey.

Note; Figures in the brackets indicate percentages of the row totals.

Table 3: Average availability of normal wear clothing (per person in pieces) in Selected Families

Item

Frequency

Percentage

Less than 2

12

10.5 More than 2 but less than 4

30

26.3

More than 4 but less than 10

41

36.0 More than 6 but less than 10

23

20.2

More than 10

8

7.0

Total

114

100

Source : Data collected During the Survey.

The data given in the above table show that 10.5 %, 26.3 % and, 36.0 % of the families had

respectively less than 2, more than 2 but less than 4, more than 4 but less than 10 and more than 6 but

less than 10 dresses. Normally, as the level of education increases,the average availibility of clothes

also increases, which is confirmed in this study.

Availibility of Tolets

Availibility of toilets in the house is also essential. The information collected regarding this has

been summarized in the following table

Out of the total selected families, 15.8 % had private toilets of their own.Thus, about 84 % of the

selected families did not have their own toilets and had to use the common toilets or open

ground.When the relationship between the educational level of the most educated member of the

family and availability of private toilet was examined , it was found that there was a positive

relation between them, i.e.as the level of education of the most educated member of the family

increased, the respondent families were found to be having and using their own toilets.

Ownership of Home Appliances among the Selected Families

An important indicator of the economic condition of a family is the ownership of various home

appliances like TV, Fridge, fan etc.In the present study, an enquiry was also made about the same,

and the information that was collected became the basis for construction of the following table


Table 4: Availbility of Toilets for the Selected Families Item Frequency Percentage

In open 86 75.4 Common toilets with irregular water supply 7 6.1 Common toilets with regular water supply

3

2.6

Private toilet

18

15.8

Total

114

100.0 Source : Data Collected During the Survey.

Table 5: Ownership of Various home Appliances

Item

Yes

Percentage

No

Percentage

Black & white TV

72

63.16

42

36.84

Pressure cooker

32

28.07

82

71.93

Electrical gadgets Used in kitchen 8 7.02 106 92.98

Radio 8 7.02 106 92.98 Tractor 9 7.89 105 92.11

Telephone/mobile 105 92.11 9 7.89 Colour TV

99

86.84

15

13.16

Two wheeler

55

48.25

59

51.75

Fridge

26

22.81

88

77. 19 Power trailer

7

6.14

107

93.86

Electric fan

9

7.89

105

92.11

Thrasher-cum-harveste

71

62.28

43

37.72

Computer

6

5.26

108

94.74

Costly furniture

6

5.26

108

94.74

Four-wheeler

8

7.02

106

92.98

Source :

Data collected During the Survey.

54

It is thus found that 92.11 % of the respondent families owned mobile phones. However, ownership

of costly furniture, computer etc. is rare.TV, two-wheelers etc. are used by a significant percentage

of the selected families. An interesting finding is that there were 8 families among the 114 selected

families who owned four-wheelers and 6 families had costly furniture, 9 of them have tractors, but

still their names appear in the BPL list. This finding shows that there should be complete change in

the indicators used for identifying the BPL families by Government

Total Annual Family Income

Economic condition of any family can be judged by its income. The table given below shows the

total annual family income of the sample families

It can be seen from the above table that most of the families earn their income from farming and

animal husbandry. The Average Annual Family Income is Rs. 40907.1. The highest annual family

income is Rs.200000 while the minimum is Rs.1000 only.

It was also found that the Average Monthly Income from animal husbandry was Rs. 3195, and the

average income from the secondary occupation was Rs.1771, and the average monthly family

income was Rs.4542.98. When the relationship between the education level of the most learned

member of the family and the level of income was examined, it was found that there was a

significant positive relation between them, i.e. one may say that when the level of education is high,

the income level is also high.

Total Annual Expenditure of the Selected Families on Various Items

Another indicator of economic development is propensity to consume of the population, by which

one may know the standard of life of the people. People should consume sufficient quantity of food

grain and pulses for a nutritious intake. One may know about the standard of living of people by


Table 6: Total Annual Family Income of Selected Families

Income

Number of families

Difference Between Max.& Min.Income

Minimum

Income

Maximum

Income

Average Income

Annual income 114 199000 1000 200000 40907. 1 Monthly income From animal Husbandry

114 20000 0 20000 3195.1

Monthly income From Secondary Occupation

114 11000 0 11000 1771.05

Total monthly family Income

114 14000 0 14000 4542.98

Source ; Data Collected During the Survey

by examining their expenditures on items like education, health, recreation, social events food etc.

The detailed classification of the expenditure of the selected families is shown in the following

table

It is thus clear from the data given above that the selected families spend the maximum amount on

the food items, and their minimum expenditure is on entertainment. The selected families on an

average spend Rs.11138.60 on the food items and Rs.1928.95 on recreation. The average total

expenditure was 20,668.88. Examining the consumption pattern of these families, the following

pattern is found 13.61 % on education, 7.60 % on health, 9.33 % on recreation, 7.71 % on social and

religious events, 1.57 % on taxes and 53.89 % on food items.

Usually, as the income of the poor families increase, their expenditure on the food items also go up.

From the data provided above,a significant positive relationship was found betwee the level of

income and the expenditure on food.

An attempt was also made to determine the relationship between the income level and expenditure

on health. However, no such relation was found between the two. So, one can not claim that the

families having higher income spend more on health.

Savings and Debt of the Selected Families

Extent of savings and amount of debt are closely related with the economic condition of a family.

Normally, for the families having higher income, savings are high and an amount of debt is lower.In

the sample, it was found that 41.2 % families had savings and the remaining 58.8 % families did not

save.


Table 7: Consumption Pattern of the Selected Families

Item

Total famil

ies

Difference between Max.&Min.Expendture

Minimum

Expendture

Maximum

Expendture

Average Expendture

Percantage of total expendture

Recreation 114 15000 0 15000 1928.95 9.33 Education

114

25000

0

25000

2813.16

13.61

Food

114

24500

500

25000

11138.60

53.89

Health

114

13000

0

13000

1570.18

7.60

Entertainment

114

12000

0

12000

1298.25

6.28

Social/religious Events

114

14900

100

15000

1594.30

7.71

Taxes

114

2000

0

2000

325.44

1.57

Total

114

15200

600

107000

20668.88

100.0

Source : Data Collected During the Survey

56

In order to determine the relationship between the educational levels of the most learned member of

the family and savings, chi-square test was applied to test the following hypothesis

H0 : There is no relation between the educational level of the most learned member of the family and savings. AgainstH1 : There is relation between the educational level of the most learned member of the family and savings.

The result has been shown in the following table

The value of chi-square was 2.253 with the significance value of 0.813, which is more than 0.05,

and hence H0 is not rejected i.e. there is no association between the level of education and extent of

savings. So, one can not conclude that as the level of education rises, saving propensity also rises.The average savings was found to be Rs.776. Of course, some families saved about Rs. 5000 which

was the maximum savings.Also, 58.8 % families did not save at all.

Apart from savings, debt is also connected with the economic condition of the family.According to

the information collected, 10.5 % of the families had incurred debt, and the remaining 89.5 % did

not borrow at all. An attempt was also made to know whether incurring debt was related to the level

of education. The illiterate families do not incur debt at all.Among the families with primary

education, 15.0 % incur debt, and 15.4 % of the families having education upto secondary level had

borrowed money. Among the families having education upto secondary level, 15.4 % had debt,

while not a single family with graduate level of education had borrowed money. But, 12.5 % of the

families having education upto postgraduate level had incurred debt.

From the above findings, one may conclude that there does not seem to be any relation between the

level of education and debt i.e these two factors are independent. So, it can not be said that due to

education, the propensity to incur debt declines.

The average amount of debt among the families which had incurred debt was Rs.8772 and the

maximum amount of debt was Rs. 100000.

Relation between the BPL Score and Expenditure on Health

The following is the two-way table showing the expenditure on health among different categories

of families based on their BPL score.


Chi-Square Tests Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 2.253a 5 .813 Likelihood Ratio 2.304 5 .806 Linear-by-Linear Association .273 1 .601 N of Valid Cases 114 a. 4 cells (33.3%) have expected count less than 5. The minimum expected count is 3.30.

In order to determine whether there was any statistical relation between the BPL score of the family

and expenditure on health, the chi-square test was applied.

Here,

H0 : There is no relation between the BPL score and expenditure on health of a family.H1: There is relation between the BPL score and expenditure on health of a family.

The application of the chi-square test gave the following result

The value of chi-square was found to be 6.055 with the significance level of 0.195. Since it is more

than 0.05, H0 is not rejected. So, there does not seem to be any significant association between the

BPL score and expenditure on health.

To examine the closeness of the relationship between these two attributes, Cramer's V measure was

also calculated and its value and the level of significance were found to be 0.163 and 0.195, which is

more than 0.05 and so the relationship is not found to be significant


Table 8: Classification of Families According to BPL Score and Expendture on Health

BPL score

Expenditure on Health

Less than 1000 1001 to 10000 10001 to 15000 Total

0 to 17 Number 26 10 0 36 Row % 72.2 27.8 0.0 100.0

Column %

40.0

20.8

0.0

31.6

18 to 20

Number

13

14

0

27 Row %

48.1

51.9

0.0

100.0

Column %

20.0

29.2

0.0

23.7 More than 20

Number

26

24

1

51 Row %

51.0

47.1

2.0

100.0

Column %

40.0

50.0

100.0

44.7 Total

Number

65

48

1

114

Row %

57.0

42.1

0.9

100.0

Column %

100.0

100.0

100.0

100.0

Chi-Square Tests Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 6.055a 4 .195 Likelihood Ratio 6.535 4 .163 Linear-by-Linear Association 4.116 1 .042 N of Valid Cases 114 a. 3 cells (33.3%) have expected count less than 5. The minimum expected count is .24.

58

Therefore, one can not say that as BPL score increases, expenditure on health also increases.

Income Inquality among the Selected Families

Usually, higher income inequality is found among the higher income group families.In this study

the BPL families identified by the Government are surveyed. Alongwith the study of rural poverty,

the study of income inequality is also important. An attempt was made in this study to Measure income inequality on the basis of the annual income of the poor rural families. Gini

coefficient and Lorenz curve were used to measure income inequality and for calculation purpose

website www.wessa.net was used. The results of this excercise are descussed below in the form of

a graph and a curve

It is necessary to remember here that the value of the Gini coefficient lies between 0 and 1, and if its

value is closer to 1, there is higher inequality, and if it is nearer to 0, inequality is less. In this study,

the value of Gini coefficient was found to be 0.402556,which suggests moderate inequality. The

Lorenz curve derived from the annual incomes of the selected families is shown in the following

figure

Figure 1: Lorenz Curve for the Sample Families

So, on the basis of the above graph and the value of the Gini coefficient, one may say that the

income inequality among the selected families is not very high.


Symmetric Measures Value Approx. Sig.

Nominal by Nominal Phi .230 .195 Cramer's V .163 .195

N of Valid Cases 114

On the basis of the primary information obtained from the survey, the sample families have been

classified into BPL and APL families and the result is depicted in the following table

It is evident from the above table that the percentages of the BPL families were 25.4, 14.29,

36.51,12.7 and 11.11 in Nizar, Songadh,Uchchhal, Valod and Vyara Talukas respectively, while the

percentages of the APL families in these Talukas were 23.53,15.69,27.45,17.65 1nd 15.69

respectively.Among the selected families, 55.26 % fall under the category of the BPL families,

while 44.74 % are the APL families. This result shows that there is some error in noting down the

category, or these families have attained so much economic progress that 51 out of 114 families

have climbed up to the APL category.

Conclusion

In this research study, the socio-economic condition of 114 families was studied by revisiting them.

This study included those BPL families which had at least one member who had studied up to

graduate or postgraduate level and also those who had larger fields, but were inluded in the BPL

list.On the basis of the information collected during the survey, it may be said that except some

families, the score calculated by the government staff does not seem to be consistent with the

reality.It seems that there was a lot of carelessness in preparing the BPL list. Besides, it was learnt

through the information given by the selected families that there is lack of basic social and physical

facilities in the rural areas of the entire district. It does not seem that the fruits and benefits of

development have reached the rural areas, especially the tribal areas. So, the local and the state

governments have a lot to do for the allround and inclusive development of these areas.


Table 9: Classification of the Selected Families as BPL & APL Families

Name of No. of

BPL Families

% of BPL Families

No. of APL Families

% of APL Families

Total Families

% of total Families

Nizar

16

25.40

12

23.53

28

24.56

Songhadh 9 14.29 8 15.69 17 14.91

Uchhal 23 36.51 14 27.45 37 32.46

Valod 8 12.70 9 17.65 17 14.91

Vyara 7 11.11 8 15.69 15 13.16 Total 63 100.00 51 100.00 114 100.00

NOTE : The families selected here had the BPL score between 0 and 20,while the APL families have score above 20. It must be made clear here that all of the above are the BPL families according to the government’s information. But they have been classified here as the BPL and APL families on the basis of the information collected during the survey.

60

References

l Amrita Dasgupta,(2007) “Floods and Poverty Traps: Evidence from Bangladesh”,

Economic and Political Weekly July 28, 2007,p.3166-3171

l Anirudh Krishna, Mahesh Kapila, Mahendra Porwal, Virpal Singh (2003), “Falling into Poverty in a High-Growth State Escaping Poverty and Becoming Poor in Gujarat Villages”, Economic and Political Weekly December 6, 2003,p.5171-5179

l Bhoye, Kailash, (2011), “Measurement of Rural Poverty on the Basis of the Local

Indicators”, Anuparangat Abhyas, M.D.College, Gujarat Vidyapith, Ahmedabad.

l Datt, G and M Ravallion, (1998): 'Farm Productivity and Rural Poverty in India', Journal of Development Studies, April.

l Dipak Lal, Rakesh Mohan and I. Natarajan, (2002) : Economic REforms and Poverty”

Madhukari, No.1,PageNo. 25 (Translated by Ramesh Shah)

l G S Bhalla, Peter Hazell, (2003)Rural Employment and Poverty Strategies to Eliminate Rural Poverty within a Generation”, Economic and Political Weekly August 16, 2003,p. 3473-3484

l Gaurav Nayyar,(2005), Growth and Poverty in Rural India An Analysis of Inter-State Differences, Economic and Political Weekly April 16, 2005,p1631-1639

l Gopal K. Kodekodi, (2002), “Poverty and Environment”, Madhukari, December, No.2, Page no.55.

l Jagdish Bhagwati (2002), “Economic Growth,Poverty and Reforms”, Madhukari, June No.1, Page no.19, (Translated by Ramesh Shah)

l Jean Dreze, Reetika khera, (2013), “Rural Poverty and the Public Distribution System”, Economics & political Weekly, Vol.xl, VIII, No.45 & 46, pp.55-59.

l Mehbub -Ul-Haque (1998), “The Poorest Region in the World”, Madhukari, No.2, December, Page No. 39--54 (Translated by Ramesh Shah).

l R Radhakrishna, K Hanumantha Rao, C Ravai, B Sambi Reddy (2004),”Chronic Poverty and Malnutrition in 1990s, Economic and Political Weekly July 10, 2004, p.3121-3130.

l Sumit Mazumdar and Alakh N. Sharma,(2013(, “Poverty and Social Protection in Urban India : Taraeting Efficiency and Poverty Impacts Of The Taraeted Public distribution system”, The Indian Journal of Labour Economics, Vol.56, No.4, PP. 547-559

l V N Misra, M Govinda Rao,(2003),Trade Policy, Agricultural Growth and Rural Poor Indian Experience, 1978-79 to 1999-2000”, Economic and Political Weekly October 25, 2003,p.4588- 4603

l Vansiya Y.N. and Patel M.R. (2010), “Rural Poverty in South Gujarat Region :A critical Study”, VNSGU Journal of Humanities & Social Science, Surat, pp.95-116.

l Vansiya Yogesh N.(2013), “Rural Poverty in Tribal area of Gujarat : Problem and Prospect” In Gamit Mahesh &Patel J.c (E.). Tribal Development Perspectivej & Issue”, (PP-160), Vista Publishers.

l Vohra, Gulshan, M. (2013), “Rural Poverty in Gujarat : A Study of Surat District”, Surat,Veer Narmad South Gujarat University, Surat.


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