Rural Development

The function of the Rural Development Division is primarily to provide overall policy guidance in formulation of plans and programmes for Rural Development. This is the nodal Division for matters relating to poverty eradication, employment generation in rural areas, development of watershed & degraded land. The following specific activities are undertaken by Division;

1. To assist in formulation of rural development programmes to be included in Five Year Plans and Annual Plans and to make periodic assessment of progress achieved.
2. To analyse and prepare comments on the EFC Memoranda and Cabinet Notes paper for Group of Ministers pertaining to rural development programmes.
3. To maintain liaison with Ministry of Rural Development, National Institute of Rural Development (NIRD) and other allied organisations mainly and participating in the meetings.
4. To collect information from various Divisions of the Planning Commission, State Governments and also from the Central Ministries which are implementing various schemes related to rural development.
5. To organize Working Group meetings to finalise the Draft Five Year Plan proposals of the State Governments. This involves the preparation of background papers, discussions on inter-se plan priorities, critical examination of plan proposals in relation to plan objectives and approaches, preparation of Working Group Reports giving, inter-alia, outlays and physical targets.
6. Finalisation of the Five Year Plan outlays of the Ministry of Rural Development. Finalisation of Annual Plans of the Central Ministry of Rural Development and State Governments. This includes assessment of progress both in physical and financial terms, in relation to the approved targets and outlays, scheme-wise examination of proposals and reviewing targets and finalizing allocation for next Annual Plan.
7. To provide comments, materials etc. for Public representations, VIP references, Parliament Questions and Agenda items for the meetings of Consultative Committee/ Standing Committee for the Planning Commission pertaining to rural development sector are also attended to.

The Rural Development Division looks after the following programmes being implemented by the Ministry of Rural Development (MoRD):

National Rural Employment Guarantee Act (NREGA),

The NREG was launched on February 2, 2006 and the first full year of operation was 2006-07 covering 200 districts. The programme was expanded to 330 districts in 2007-08 and covers the whole country from 1.4.08. The primary objective of the scheme is to provide guaranteed work for 100 days for any household wishing to have such employment. Although all households are eligible, the expectation is that only the poorer sections, i.e., landless labour and marginal farmers would actually seek work. The secondary objective is to ensure that employment generated is from works that raise land productivity.

Swarnjayanti Gram Swarozgar Yojana (SGSY)

SGSY is a major on-going scheme for the self-employment of the rural poor. The basic objective of the scheme is to bring the assisted poor families (swarozgaris) above the poverty line by providing them income generating assets through a mix of bank credit and government subsidy. Credit is the critical component of the scheme whereas the subsidy is an enabling element. The scheme involves organisation of the poor into Self Help Groups (SHGs) build their capacities through a process of social mobilization, their training, selection of key activities, planning of activity clusters, creation of infrastructure, provision of technology and marketing support, etc. Under the scheme focus is on the group approach. However, individual Swarozgaris are also assisted. The SGSY is being implemented by the District Rural Development Agencies (DRDAs) with the active involvement of Panchayati Raj Institutions (PRIs), banks, line Departments and the Non-Government Organisations (NGOs).

The credit mobilization under SGSY has been abysmally low. Further, a large number of SHGs are formed but fizzle out midway after availing the revolving fund. To make the scheme more effective it is being re-structured with a sharper focus on poorest of the poor people. A suitable mechanism will be put in place for higher social mobilization, capacity building and institution building among the target population

Indira Awaas Yojana (IAY)

The IAY is being implemented as an independent scheme since 1996. It aims to provide assistance for construction / upgradation of dwelling units to the Below Poverty Line (BPL) rural households, with special emphasis on SCs, STs and freed bonded labor categories. A maximum assistance of Rs 35,000 per unit is provided for construction in plain areas and Rs 38,500 per unit for hilly/difficult areas. Rs 15000 is given for upgradation of a dwelling unit for all areas. The funding of IAY is shared between the Centre and State in the ratio of 75:25. (100% in the case of UTs).

National Social Assistance Programme (NSAP)

The National Social Assistance Programme (NSAP) was launched with the aim to provide social assistance benefit to poor households in the case of old age, death of primary breadwinner and maternity. The programme supplements the efforts of the State Governments with the objective of ensuring minimum national levels of well being and the Central assistance is an addition to the benefit that the States are already providing on Social Protection Schemes. With a view to ensure better linkage with nutrition and national population control programmes, the Maternity Benefit Component of the NSAP was transferred to the Department of Family Welfare, Ministry of Health and Family Welfare with effect from 2001-02. The schemes of NSAP and Annapurna have been transferred to the State Plan with effect from 2002-03 with a view to provide requisite flexibility to the State / UT in the choice and implementation of the schemes.

Integrated Watershed Management Programme (IWMP)

During the Eleventh Plan, the three area development programmes, namely, Integrated Wasteland Development Programme, Drought Prone Area Programme and Desert Development Programme have been integrated and consolidated into a single programme called Integrated Watershed Management Programme (IWMP). This consolidation is for optimum use of resources, sustainable outcomes an integrated planning. The common guidelines for the Watershed Development Programme have been formulated and are effective from 1.4.2008. An amount of Rs.1825 crore has been allocated for IWMP during 2008-09. The ongoing projects sanctioned prior to 1.4.2008 under DADP, DDP, and IWDP would be continued to be implemented as per old guidelines.

The modified IWMP would adopt a three tier apporch in which the upper reaches which are mainly forested and hilly would be treated with the support of Forest Department. For land situated intermediate slopes above the agriculture lands, the IWMP would address all the necessary issues of land treatment by adopting best possible options including cropping pattern, horticulture and agro-forestry etc. In the lower tire, which are plains and mainly agricultural lands, the IWMP would be dovetailed with the employment generating programme such as National Rural Employment Guarantee Scheme (NREGS) an would fill the critical gaps of NREGS and vice versa.

Under the new programme, a cluster approach would be followed with a broader vision of natural hydro-geographical unit of average size of 4,000 to 10,000 ha. comprising of clusters of micro-watershed to be selected as project area. The progrrame would be implemented by dedicated institutional agencies at state and central level. Professional support (in the form of multidisciplinary expert team) would be provided to support these institutions with proper fund allocation. A core GIS facility with spatial and non-spatial data augmented with satellite imagery data would be set up for giving Controlled access/distributon for local project planning.

The project period is proposed in the range of 5 to 7 years in three distinct phases, i.e. Preparatory, Watershed works and Consodilation phase. The consodilation phase will include livelihood activities, marketing, processing and value addition activities.

National Land Records Modernization Programme (NLRMP):

The National Land Records Modernization Programme (NLRMP) has been conceptualized as a major system and reform initiative that is concerned not merely with computerization, updating and maintenance of land records and validation of titles, but also as a programme that will add value and provide a comprehensive database for planning developmental, regulatory and disaster management activities by providing location-specific information, while providing citizen services based on land records data.

Under the NLRMP, the following three layers of data will be integrated on a geographic information system (GIS) platform: Spatial data from satellite imagery/aerial photography, Survey of India and Forest Survey of India maps, and Revenue records: cadastral maps and RoR details. All cadastral maps will be digitized, and data included with plot numbers and unique id for each land parcel. Administrative unit boundaries from village level upwards (including panchayat, block, tehsil, circle, sub-division, district, division, State and national boundaries), forest, water bodies and other physical attributes of land and land use details will be overlaid, and other developmental layers (e.g., watersheds, road networks, etc.) added to the core GIS.

The activities to be supported under the Programme, inter alia, include survey/resurvey using modern technology including aerial photogrammetry, updating of land records including mutation records, completion of computerization of the records of rights (RoRs), computerization of registration, automatic generation of mutation notices, digitization of maps , integration of the entire system digitization of maps and training and capacity building of the concerned officials and functionaries. Connectivity amongst the land records and registration offices and land records management centers at tehsil/taluk/circle/block level would be supported. Access to land records data would be provided to Cooperative and other financial institutions for facilitating credit operations.

A major focus of the Programme will be on citizen services, such as providing records of rights (RoRs) with maps; other land-based certificates such as caste certificates, income certificates (particularly in rural areas), domicile certificates; information for eligibility for development programmes; land passbooks, etc.

In addition, the Programme will be of immense usefulness to the governments - both Central and State Governments - in modernizing and bringing efficiency to the land revenue administration as well as offering a comprehensive tool for planning various land-based developmental, regulatory and disaster management activities needing location-specific information. Even the private sector will be able to benefit from this comprehensive tool for planning business and economic activities.

As indicated above, the NLRMP has been approved by the Cabinet in its meeting held on 21.8.2008. The budget provision for the Scheme during the current year (2008-09) is Rs.473.00 crore. Accordingly, it is proposed to implement the NLRMP across the country and to make it fully operational over the next five to eight year period. The components of the scheme will become integrated with the Revenue Administration of the States/UTs and will continue as such on an ongoing basis.

Special Economic Zones (SEZs)

India was one of the first in Asia to recognise the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. Seven more zones were set up thereafter. However, the zones were not able to emerge as effective instruments for export promotion on account of the multiplicity of controls and clearances, the absence of world-class infrastructure, and an unstable fiscal regime. While correcting the shortcomings of the EPZ model, some new features were incorporated in the Special Economic Zones (SEZs) Policy announced in April 2000. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. The salient features of the SEZ Scheme are:-

• A designated duty free enclave to be treated as foreign territory only for trade operations and duties and tariffs.
• No licence required for import.
• Manufacturing or service activities allowed.
• SEZ units to be positive net foreign exchange earner within three years.
• Domestic sales subject to full customs duty and import policy in force.
• Full freedom for subcontracting.
• No routine examination by customs authorities of export/import cargo.

In order to impart stability to SEZ regime and to achieve generation of greater economic activity and employment through the establishment of SEZs, a Special Economic Zone Act has been enacted. The SEZ Act, 2005, supported by SEZ Rules, has come into effect on 10th February 2006. Incentives and facilities offered to units in SEZs under the Act, for promotion of investment, including foreign investment include: duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units, 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years, exemption from Central Sales Tax, exemption from Service Tax and single window clearance mechanism for establishment of units.
All the 8 Export Processing Zones (EPZs) located at Kandla and Surat (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (U.P.) have been converted into Special Economic Zones. In short span of about three years, SEZs Act and rules were notified in February, 2006. So far formal approvals have been granted for setting up of 576 SEZs out of which 319 have been notified. Out of the total employment provided to 3.87 lakh persons in SEZs as a whole, 2.53 lakh persons is incremental employment generated after February, 2006 when the SEZ Act came into force. This is apart from the million of man-days of employment created by the developer of infrastructure activities. Physical exports from SEZs have increased from Rs.66,638 crore in 2007-08 to Rs.99,689 crore in 2008-09, registering a growth of 50%. There has been overall growth of export of 620% over past five years (2004-09). These figures establish beyond doubt that the response to the SEZ policy of the Central Government has been overwhelming and the scheme has been able to achieve the envisaged objectives. An investment of Rs.1,08,903 crore has been made in SEZs. This includes Foreign Direct Investment of US $ 2.29 billions.

Exports from the functioning SEZs during the last five years are as under:

Year	Value (Rs. crore)	Growth Rate (over previous Year)
2003-2004	13,854	39%
2004-2005	18,314	32%
2005-2006	22,840	24.7%
2006-2007	34,615	52%
2007-2008	66,638	92%
2008-2009	99,689	50%

A total of 91 SEZs are making exports. Out of this 43 are IT/ITES, 13 Multi product and 35 other sector specific SEZs. The total number of units in these SEZs is 2263.

Impact of the Scheme

The overwhelming response to the SEZ scheme is evident from the flow of investment and creation of additional employment in the country. The SEZ scheme has generated tremendous response amongst the investors, both in India and abroad, which is evident from the following details of certain SEZs which have recently come up:

• Nokia Special Economic Zone in Tamil Nadu (Telecom equipments SEZ).
• Mahindra City SEZ, Tamil Nadu (Apparels and fashion accessories; IT/hardware; auto ancillary).
• Apache SEZ (Adidas Group) in Andhra Pradesh (Footwear SEZ).
• Mundra Port and Special Economic Zone, Gujarat (Multi product SEZ).
• Moser Baer SEZ, Noida, Uttar Pradesh (SEZ for Non-conventional energy including solar energy equipment).
• Wipro Limited, Andhra Pradesh (IT SEZ).
• Divvy's Laboratories Limited, Andhra Pradesh (Pharma SEZ).
• Flextronics SEZ in Tamil Nadu (Electronic Hardware SEZ).
• ETL Infrastructure IT SEZ, Tamil Nadu (IT SEZ).
• Wipro Limited, Karnataka - 2 SEZs in Sarjapur and Electronic City (IT SEZ).
• Biocon Limited, Karnataka (Biotech SEZ).
• Serum Bio-Pharma Park, Maharashtra (Pharma SEZ).
• Manyata Promoters Private Limited, Karnataka (IT/ITES SEZ).
• Chandigarh Administration, Chandigarh (IT SEZ).
• Hyderabad Gems Limited, Hyderabad (Gems and Jewellery SEZ).
• Maharashtra Airport Development Corporation Limited, Maharashtra (Multi product SEZ).
• Reliance JamnagarInfrastructure Ltd. (Multi Product).
• Suzlon Infrastructure Ltd. (Hi-tech Engineering Products & related services).

ECONOMIC SNAPSHOT

• Indian economy is estimated to grow at 8.6 percent in 2010-11 as compared to the growth rate of 8.0 percent in 2009-10. The growth rate of 8.6 per cent in GDP during 2010-11 has been due to the robust growth rates of over 8 per cent in the sectors of manufacturing, construction, trade, hotels, transport and communication, financing, insurance, and, real estate and business services.A growth rate of 18.3 percent is estimated for GDP at current prices in the year 2010-11.
  
  
• The agriculture, forestry and fishing sector is likely to show a growth of 5.4 per cent in its GDP during 2010-11, as against the previous year's growth rate of 0.4 per cent.The estimate of GDP from agriculture in 2010-11,according to the Department of Agriculture and Cooperation (DAC),production of foodgrains and oilseeds is expected to grow by 6.5 per cent and 11.9 per cent, respectively, as compared to the previous agriculture year. The production of cotton and sugarcane is also expected to rise by 41.2 per cent and 15.2 per cent, respectively, in 2010-11. Among the horticultural crops, production of fruits and vegetables is expected to increase by 4.1 per cent and 3.8 per cent, respectively, during the year 2010-11.
  
  
• The growth in GDP for mining and quarrying and manufacturing sectors during 2010-11 is expected to be 6.2 and 8.8 percent respectively over previous year. According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining and manufacturing registered growth rates of 8.0 per cent and 10.0 per cent during April-November, 2010. The estimated growth rate for construction sector is 8.0 percent in 2010-11. The key indicators of construction sector, namely, cement production and steel consumption have registered growth rates of 4.4 per cent and 8.8 per cent, respectively during April- December, 2010.
  
  
• The estimated growth in GDP for the trade, hotels, transport and communication sectors during 2010-11 is placed at 11.0 per cent, mainly on account of growth during April- November, 2010-11 of 14.9 per cent in passengers handled in civil aviation,21.3 per cent in air cargo handled and 40.9 per cent in stock of telephone connections. The sales of commercial vehicles witnessed an increase of 34.1 per cent per cent in April-December, 2010. The financing, insurance, real estate and business services sector is expected to show a growth rate of 10.6 per cent during 2010-11, on account of 14.0 per cent growth in aggregate deposits and 22.6 per cent growth in bank credit during April- November 2010 (against the respective growth rates of 18.6 per cent and 10.1 per cent in the corresponding period of previous year). The growth rate of community, social and personal services during 2010-11 is estimated to be 5.7 per cent.
  
  
• Per capita Income of Indians is estimated to rise by 17.3 per cent during 2010-11, as per the revised data released by the Government. Per capita income means earnings of each Indian if the national income is evenly divided among the country's population.However, the increase in per capita income is estimated at at 6.7 percent during 2010-11, if it is calculated in real terms i.e on 2004-05 prices.
  

Table for the annual growth by economic activity in Gross Domestic Product (GDP) for the year 2010-11, released by the Central Statistics office (CSO):

S.No.	Industry	at Constant (2004-05) Prices		at Current Prices
		(US$ billion)	(%)	(US$ billion)	(%)
1	Agriculture, forestry & fishing	152.42	5.4	295.25	23.2
2	Mining & quarrying	24.32	6.2	40.13	18.2
3	Manufacturing	170.87	8.8	228.09	14.5
4	Electricity, gas & water supply	20.49	5.1	22.15	8.6
5	Construction	84.57	8.0	129.21	17.0
6	Trade, hotels, transport & communication	291.36	11.0	379.65	16.7
7	Financing, insurance, real estate & business services	187.89	10.6	285.97	26.5
8	Community, social & personal services	141.87	5.7	216.87	11.3
Total GDP		1073.79	8.6	1597.49	18.3

Source: Central Statistics Office (CSO), Ministry of Statistics & Programme Implementation, Government of India 

Money and Banking

• During 2010-11, on a financial-year basis, Reserve Money (M0) expanded by 8.4 per cent (up to 10 December 2010), compared to an increase of 1.6 per cent during the corresponding period of the preceding year.The net foreign assets (NFA) of the RBI increased by 6.1 per cent during this period, as against an increase of 1.5 per cent during the corresponding period of the previous year. On a year on-year basis,(as on 11 December 2010), the NFA of the RBI marginally increased by 0.6 per cent compared to a 6.8 per cent increase a year earlier.
  
  
• During 2010-11, on a financial-year basis, M0 expanded by 8.4 per cent (up to 10 December 2010), compared to an increase of 1.6 per cent during the corresponding period of the preceding year.The net foreign assets (NFA) of the RBI increased by 6.1 per cent during this period, as against an increase of 1.5 per cent during the corresponding period of the previous year. On a year on-year basis,(as on 11 December 2010), the NFA of the RBI marginally increased by 0.6 per cent compared to a 6.8 per cent increase a year earlier.
  
  
• Net RBI credit to the Central Government increased by US$ 15.8 billion ( Rs. 70,856 crore) during the financial year so far (up to 10 December 2010). This was mainly on account of increase in repo operations under the Liquidity Adjustment Facility (LAF) and open market purchases of the Bank, partly offset by increase in the cash balances of the Central Government. On a year-on-year basis, increase in the net RBI credit to the Central Government, as on 10 December 2010, was US$ 47.1 billion ( Rs. 2,10,714 crore) as against an increase of US$ 21.9 billion ( Rs. 98,273 crore) a year earlier.
  
  
• Narrow money (M1) increased by 18.6 per cent in 2009-10 as compared to an expansion of 9.0 per cent during 2008-09. During 2010-11, M1 growth has generally been higher than in 2009-10. On a financial-year basis, M1 increased by 3.1 per cent during the current year (up to 3 December 2010) compared to increase of 5.1 per cent during the corresponding period of the previous year.
  

• On a year-on-year basis, as on (3rd December 2010), M1 growth was 16.5 per cent as compared to 18.3 per cent a year earlier. During the current financial year (up to 3 December 2010), currency with the public expanded by 12.9 per cent US$ 22.2 billion ( Rs. 99,324 crore), compared to an increase of 9.8 per cent US$ 14.5 billion ( Rs. 64,962 crore) during the corresponding period of the previous year.
  
  
• Broad money (M3) supply increased by 16.8 per cent during 2009-10.On a year-on-year basis also, as on 3 December 2010, the growth in time deposits moderated to 14.9 per cent from 18.7 per cent a year earlier.
  
  
• During the current financial year 2010-11 (up to 3 December 2010) the growth in M3 was 8.2 per cent as compared to 9.6 per cent during the corresponding period of the previous year. On a year-on-year basis, M3 grew by 15.3 per cent on 3 December 2010, as against growth of 18.6 per cent on the corresponding date of the previous year. Among the sources of M3, however, bank credit to the commercial sector has been accelerating since November 2009.
  
  
• Broad money (M3) (up to February 25, 2011) increased by 13.6 per cent as compared to 13.8 per cent during the corresponding period of the last year. The year-on-year growth, as on February 25, 2011 was 16.5 per cent as compared to 17.0 per cent last year.

Infrastructure

The Index of Six core industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 268.9 (provisional) in February 2011 and registered a growth of 6.8% (provisional) compared to 4.2% registered in February 2010. During April- February 2010-11, s ix core industries registered a growth of 5.7% (provisional) as against 5.4% during the corresponding period of the previous year.

Crude Oil

Crude Oil production (weight of 4.17% in the IIP) registered a growth of 12.2% (provisional) in February 2011 compared to a growth rate of 4.0% in February 2010. The Crude Oil production registered a growth of 11.9% (provisional) during April- February 2010-11 compared to 0.3% during the same period of 2009-10.

Petroleum Refinery Products

Petroleum refinery production (weight of 2.00% in the IIP) registered a growth of 3.2% (provisional) in February 2011 compared to growth of 0.7 % in February 2010. The Petroleum refinery production registered a growth of 2.5% (provisional) during April- February 2010-11 compared to (-) 0.4% during the same period of 2009-10.

Coal

Coal production (weight of 3.2% in the IIP) registered a growth of (-) 5.7% (provisional) in February 2011 compared to growth rate of 6.7% in February 2010. Coal production grew by 0.1 % (provisional) during April- February 2010-11 compared to an increase of 7.9% during the same period of 2009-10.

Electricity

Electricity generation (weight of 10.17% in the IIP) registered a growth of 7.2 % (provisional) in February 2011 compared to growth rate of 6.9% in February 2010. Electricity generation grew by 5.4 % (provisional) during April- February 2010-11 compared to 6.0% during the same period of 2009-10.

Cement

Cement production (weight of 1.99% in the IIP) registered a growth of 6.5% (provisional) in February 2011 compared to 7.9% in February 2010. Cement Production grew by 4.3 % (provisional) during April- February 2010-11 compared to an increase of 10.8% during the same period of 2009-10.

Finished (carbon) steel

Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of 11.5% (provisional) in February 2011 compared to (-) 0.2% (estimated) in February 2010. Finished (carbon) Steel production grew by 8.1% (provisional) during April- February 2010-11 compared to an increase of 5.2% during the same period of 2009-10.

N.B: Data are provisional. Revision has been made based on revised data obtained.

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MACRO ECONOMIC INDICATORS

Population	1.21 billion
Gross Domestic Product (GDP) during 2010-11	US$ 1,597.5 billion
Gross National Income (GNI) during 2010-11	US$ 1,584.2 billion
Per Capita Income in 2010-11	US$ 1,020.3
Overall Industrial growth (February 2011)	3.6 %
Forex Reserves (April 2011)	US$ 303.5 billion
Amount of FDI inflows during 2010-11 (April 2010-February 2011)	US$ 18.3 billion
Cumulative amount of FDI inflows (August 1991 to February 2011)	US$ 145.2 billion
Exchange rate INR/1 USD (as on May 06, 2011)	44.57
Exports March 2011	US$ 29.1 billion
Cumulative Exports April-March 2010-11	US$ 245.9 billion
Imports February 2011	US$ 34.7 billion
Cumulative Imports April-March 2010-11	US$ 350.7 billion
Average literacy rate (census 2001)	64.8%
Life expectancy for males	63.9 years
Life expectancy for women	66.9 years

Note: The financial year for India is April 1st-March 31st

Agriculture Scetor

AGRICULTURE

Agriculture provides significant support for economic growth and social transformation of the country. As one of the world’s largest agrarian economies, the agriculture sector (including allied activities) in India accounted for 14.2 per cent of the gross domestic product (GDP), at constant 2004-05 prices during 2010-11 as per Central Statistics Office (CSO) of India.In 2009-10,the GDP for agriculture and allied sectors accounted for 14.6 per cent of the GDP compared to 15.7 per cent in 2008-09.

The agriculture sector accounts for about 58 per cent of employment in the country (as per 2001 census). This sector is a supplier of food, fodder, and raw materials for a vast segment of industry. Hence the growth of Indian agriculture can be considered a necessary condition for inclusive growth'. More recently, the rural sector (including agriculture) is being seen as a potential source of domestic demand,a recognition that is even shaping the marketing strategies of entrepreneurs wishing to widen the demand for goods and services. In terms of composition, out of a total share of 14.6 per cent of the GDP in 2009-10 for agriculture and allied sectors, agriculture alone accounted for 12.3 per cent followed by forestry and logging at 1.5 per cent and fisheries at 0.8 per cent.

In 2009-10, despite experiencing a poor monsoon, the growth marginally recovered to 0.4 per cent primarily due to a good rabi crop. Several advance measures taken by the government also had the desired effect of checking the impact of the drought situation on the rabi crop. Things are looking bright in the current year with a relatively good monsoon and the agriculture-sector is expected to grow at 5.4 per cent as per the 2010-11 advance estimates. The agriculture sector growth in the first four years of the Five Year Plan (2007-2012) is estimated at 2.87 per cent. In order to achieve the Plan target of average 4 per cent per year, the agriculture sector needs to grow at 8.5 per cent during 2011-12.

The rates of growth and share of agriculture and allied activities in the GDP of the country are given below:

Agriculture sector: Key indicators

Figures in Percentage (%)
	Item	2008-09	2009-10	2010-11 (AE)*
1	GDP—Share and Growth (at 2004-05 prices)
	Growth in GDP in agriculture & allied sectors	-0.1	0.4	5.4
	Share in GDP-Agriculture and allied sectors	15.7	14.6	14.2
Agriculture		13.3	12.3
2	Forestry and logging	1.6	1.5
	Fishing	0.8	0.8
	Share in Total Gross Capital Formation in the Country (at 2004-05 prices) Share of Agriculture & Allied Sectors in total Gross Capital Formation	8.3	7.7
Agriculture		7.7	7.1
3	Forestry and logging	0.07	0.06
	Fisheries	0.56	0.54
	Agricultural Imports & Exports (at current prices) Agricultural imports to national imports	2.71	4.38
Agricultural exports to national exports		10.22	10.59
4	Employment in the agriculture sector as share of total workers	58.2

*AE=Advance Estimates
Source : Central Statistical Organization (CSO) and Department of Agriculture and Cooperation. 

Animal Husbandry, Dairying and Fisheries
In 2009-10, this sector produced 112.5 million tonnes of milk, 59.8 billion eggs, 43.2 million kg wool, and 4.0 million tonnes of meat. The result of the 18th Livestock Census (2007), derived from village-level count, has placed the total livestock population at 529.7 million and poultry birds at 648.8 million.

India ranks first in world milk production, increasing its production from 17 million tonnes in 1950-51 to about 112.5 million tonnes in 2009-10.The per capita availability of milk has also increased from 112 grams per day in 1968-69 to 263 gram per day in 2009-10.

Livestock Insurance
A centrally sponsored scheme for livestock insurance is being implemented in all the States with the twin objectives of providing a protection mechanism to farmers and cattle rearers against loss of their animals due to death and to demonstrate the benefit of livestock insurance to the people. The scheme benefits farmers (large, small and marginal) and cattle rearers having indigenous/crossbred milch cattle and buffaloes.

Poultry

Poultry development is one of the most resilient sectors in the country, fast adapting itself to the changing biosecurity, health, and food safety needs. India produces more than 59.8 billion eggs per year, with per capita availability of 51 eggs per annum. The poultry meat production is estimated to be 1.85 million tonnes in 2008-09. To provide necessary services to the farmers, four regional Central Poultry Development Organizations (CPDOs) have been restructured on the principle of one window service.

Livestock health
Animal wealth in India has increased manifold and animal husbandry practices have also changed to a great extent. With improvement in the quality of livestock through launching of extensive cross-breeding programmes, the susceptibility of this livestock to various diseases, including exotic diseases, has increased. To ensure maintenance of disease-free status and compliance with the standards laid down by the World Animal Health Organization, major animal health schemes and programmes have been initiated.

Further, for control of major livestock and poultry diseases, the Government of India provides financial assistance to States/UTs in their efforts to prevent, control and contain animal diseases and also to strengthen veterinary services including reporting of animal diseases. All avian influenza outbreaks reported were effectively controlled and the country declared free from avian influenza in June 2010.

Fisheries
Fish production increased from 7.14 million tonnes in 2007-08 to 7.85 million tonnes in 2009-10. Fishing, aquaculture, and allied activities are reported to have provided livelihood to over 14 million persons in 2008-09, apart from being a major foreign exchange earner.

Feed and fodder
Adequate availability of feed and fodder for livestock is very vital for increasing milk production and sustaining the ongoing genetic improvement programme. It is estimated that there is green fodder shortage of about 34 per cent in the country. To increase the availability of fodder, the Department of Animal Husbandry & Dairying is implementing a Centrally sponsored Fodder Development Scheme throughout the country to supplement the efforts of the states. A central Minikit Testing Programme is also being implemented under which minikits of latest high-yielding fodder varieties are distributed free of cost to farmers for their popularization.

Agricultural Credit

In the year 2009-10, Government provided an additional 1 per cent interest subvention to those farmers who repaid their short-term crop loans as per schedule. The Government has raised this subvention for timely repayment of crop loans from 1 per cent to 2 per cent from the year 2010-11. Thus the effective rate of interest for such farmers will be 5 per cent per annum.

Agricultural Insurance

Four crop insurance schemes, namely the National Agricultural Insurance Scheme (NAIS), Pilot Modified NAIS (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS), and Pilot Coconut Palm Insurance Scheme (CPIS) are under implementation in the country.

The National Agricultural Insurance Scheme (NAIS)

The NAIS is being implemented in the country from rabi 1999-2000 season. The Agriculture Insurance Company of India Ltd. (AIC) is the implementing agency (IA) for the Scheme. The main objective of the scheme is to protect farmers against crop losses suffered on account of natural calamities.

The Pilot Modified NAIS (MNAIS)

Keeping in view the limitations/shortcomings of the existing scheme, the Government has approved the Modified NAIS for implementation on pilot basis in 50 districts from rabi 2010-11 season. The major improvements made in the MNAIS are: actuarial premium with subsidy in premium at different rates, i.e. 40 per cent to 75 per cent depending upon the slab, provided to farmers, all claims liability on the insurer, unit area of insurance reduced to village panchayat level for major crops, indemnity for prevented/sowing/planting risk and for post harvest losses due to cyclone, payment up to 25 per cent advance of likely claims as immediate relief, more proficient basis for calculation of threshold yield, minimum indemnity level of 70 per cent instead of 60 per cent, and private-sector insurers with adequate infrastructure allowed (at present, ICICILombard,IFFCO-Tokio and Cholamandalam-MS).

Weather Based Crop Insurance Scheme (WBCIS)

Efforts have been made to bring more farmers under the fold of crop insurance by introducing a Weather Based Crop Insurance Scheme (WBCIS).The WBCIS is intended to provide insurance protection to farmers against adverse weather incidences, which are deemed to unfavourably impact crop production. It has the advantage of settling claims within the shortest possible time.

Agricultural Marketing

Organized marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the State and Union Territory Governments have enacted legislations (Agriculture Produce Marketing Committee Act) to provide for regulation of agricultural produce markets.

Most of the states and union territories have enacted legislations (the Agriculture Produce Marketing Committee [APMC] Act) to provide for regulation of agricultural produce markets. Seventeen States/ UTs have amended their APMC Acts and the remaining are in the process of doing so.

There are 7157 regulated markets in the country as on 31st March 2010. The country has 21,221 rural periodical markets, about 15 per cent of which function under the ambit of regulation.

Industrial Performance & Services

INDUSTRIAL PERFORMANCE

Industrial Performance During 2009-10

After a deep global recession, economic growth has turned positive and the global economic outlook has improved over the past few months.Indian economy grew at an average rate of 8.8 per cent in the four-year period from 2005-06 to 2008-09, despite the crisis-affected year of 2008-09. The economy weathered the financial turbulence well and grew at 7.2 per cent in 2009-10. The rapid adjustments in the monetary and fiscal policies were well calibrated and desired results achieved.

Sectoral Performance

All the three sectors namely mining, manufacturing and electricity have shown positive growth during 2009-10 (April 2009-March 2010). The mining and quarrying registered a growth rate of 9.7 per cent during 2009-10 (April 2009-March 2010), as against the growth rate of 8.3 per cent during (April-November 2009). Due to this increase in the IIP-Mining, the growth rate in GDP is now estimated at 10.6 per cent, as against the advance estimate growth rate of 8.7 per cent.

Similarly, the IIP of manufacturing registered a growth rate of 10.9 per cent during 2009-10 (April 2009-March 2010) as against the growth rate of 7.7 per cent during (April-November 2009). Due to this increase in the IIP, the GDP of manufacturing sector is now estimated at 10.8 per cent, as against the Advance estimate growth rate of 8.9 per cent.

The sectors which showed growth rates of 5 per cent or more, are ‘mining and quarrying’ (10.6 per cent), manufacturing (10.8 per cent), electricity, gas and water supply (6.5 per cent) construction (6.5 per cent), trade, hotels, transport and communication (9.3 per cent), financing, insurance, real estate and business services (9.7 per cent),and community,social and personal services (5.6 per cent). The agriculture, forestry and fishing sector, however registered a growth rate of 0.2 per cent.

Comparative growth rates for these three sectors for the year 2007-08 to 2009-10 (April 2009-Mar 2010) are given in table below:

Annual Growth rate of industrial production in major sectors of industry (Based on the Index of Industrial Production) Base: 1993-94=100 (Per cent)
Period	Mining & Quarrying	Manufacturing	Electricity	Overall
Weight	10.47	79.36	10.17	100.00
2007-08	5.1	9.0	6.4	8.5
2008-09	2.6	2.8	2.8	2.8
2009-10 (Apr 2009-Mar 2010)	9.7	10.9	6.0	10.4

Source: Central Statistical Organisation (CSO)

Use-Based Classification

In terms of the use-based classification, the IIP growth in March 2010 was driven by high growth in capital goods and consumer durables, while basic and intermediate goods displayed healthy growth in excess of 10%, suggesting that the demand for finished products remains strong. The pace of growth of consumer durables improved to 32% in March 2010 from 30% in February 2010, suggesting that consumer confidence and demand remains robust.

Capital goods expanded by a robust 27.4% in March 2010. The capital goods sub-index remained the highest contributor to IIP growth amongst the use-based industries for the fourth consecutive month. While the high growth in this category is likely to have been supported by infrastructure spending by the Central and State Governments at the end of the fiscal year, the steep increase in Bank credit off-take and external commercial borrowings in March 2010 suggest a revival of private investment. Investment sentiment and the trends in private investment growth are likely to considerably influence the pace of IIP growth in the coming months.Cumulative growth for capital goods during April 2009-March 2010 was expanded by 19.2 percent as compared 7.3 percent during same period of 2008-09.

The growth of intermediate goods remained healthy at 12.7% in March 2010. Continued double-digit growth suggests that the demand for finished products remains robust.The growth rate of intermediate goods is expected to moderate in the coming months with the waning of the favourable base effect.Cumulative growth for intermediate goods during April 2009-March 2010 was expanded by whopping 13.6 percent as compared to -1.9 percent during same period of 2008-09.

Basic goods expanded by 10.1% in March 2010.The sub-index displayed a growth of 7.1 percent in April 2009-March 2010,considerably higher than 2.6 percent during same period of 2008-09.

The overall growth in consumer goods improved to 10.6 percent as compared to 1.3 percent during same month of 2008-09.The cumulative growth of consumer goods during April 2009-March 2010 expanded by 7.4 percent as compared to 4.7 percent during same period last year.

The pace of growth of consumer durables improved to 32% in March 2010 from 30% in February 2010, suggesting that domestic consumer demand remains robust. The high growth displayed by consumer durables in March 2010 is noteworthy, coming on the back of 8.4% growth in March 2009. This use-based category displayed the highest average growth rate during April 2009-March 2010 at 26.1%, relative to the low growth of 4.5% during same period of 2008-09, reflecting robust domestic consumer confidence and demand, benefiting substantially from the release of Pay Commission related arrears to Government employees as well as the recent revival in exports. Notwithstanding the positive impact of the staggered release of Pay Commission related benefits to State Government employees on demand for consumer durables, the growth of this sector is expected to moderate substantially in the coming months led by an adverse base effect following the double-digit growth displayed by consumer durables throughout 2009-10. Additionally, the transmission of monetary tightening into higher interest rates may depress consumer demand to some extent.

Consumer non-durables expanded by 3.3% in March 2010, resulting in a low 1.5 % average growth for the period April 2009-March 2010 as compared to 4.8 percent during same period of 2008-09.This was the only category displaying lower growth in 2009-10 relative to 2008-09. In the near term, the level of the agricultural output and its impact on inflation would influence the disposable incomes and purchasing power of both rural and urban households, which remains a critical determinant of the demand for consumer non-durables.

Comparative growth rates of industrial production based on use-based classification since 2007-08 to 2009-10 (April-March 2010) are given in table below:

Sectors	Weight	2007-08	2008-09	2009-10 (March 2010)	2009-10 (Apr 2009-Mar 2010)
Basic Goods	35.6	7.0	2.6	10.1	7.1
Capital Goods	9.3	18.0	7.3	27.4	19.2
Intermediate Goods	26.5	9.0	-1.9	12.7	13.6
Consumer Goods	28.7	6.1	4.7	10.6	7.4
(i) Consumer durables	5.4	-1.0	4.5	32	26.1
(ii) Consumer non durables	23.3	8.6	4.8	3.3	1.5

Source: Central Statistical Organisation (CSO)

INDIA'S ECONOMIC REFORMS

The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in earnest only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government.

The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime. An important feature of India's reform programme is that it has emphasized gradualism and evolutionary transition rather than rapid restructuring or "shock therapy". This approach was adopted since the reforms were introduced in June 1991 in the wake a balance of payments crisis that was certainly severe. However, it was not a prolonged crisis with a long period of non-performance.

The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following:

• Dominance of the public sector in the industrial activity
  
• Discretionary controls on industrial investment and capacity expansion
  
• Trade and exchange controls
  
• Limited access to foreign investment
  
• Public ownership and regulation of the financial sector

The reforms have unlocked India's enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments, across political parties, have successfully carried forward the country's economic reform agenda.

Reforms in Industrial Policy

Industrial policy was restructured to a great extent and most of the central government industrial controls were dismantled. Massive deregulation of the industrial sector was done in order to bring in the element of competition and increase efficiency. Industrial licensing by the central government was almost abolished except for a few hazardous and environmentally sensitive industries. The list of industries reserved solely for the public sector -- which used to cover 18 industries, including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, minerals, oil, mining, air transport services and electricity generation and distribution was drastically reduced to three: defense aircrafts and warships, atomic energy generation, and railway transport. Further, restrictions that existed on the import of foreign technology were withdrawn.

Reforms in Trade Policy

It was realized that the import substituting inward looking development policy was no longer suitable in the modern globalising world.

Before the reforms, trade policy was characterized by high tariffs and pervasive import restrictions. Imports of manufactured consumer goods were completely banned. For capital goods, raw materials and intermediates, certain lists of goods were freely importable, but for most items where domestic substitutes were being produced, imports were only possible with import licenses. The criteria for issue of licenses were non-transparent, delays were endemic and corruption unavoidable. The economic reforms sought to phase out import licensing and also to reduce import duties.

Import licensing was abolished relatively early for capital goods and intermediates which became freely importable in 1993, simultaneously with the switch to a flexible exchange rate regime. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were finally removed on April 1, 2001, almost exactly ten years after the reforms began, and that in part because of a ruling by a World Trade Organization dispute panel on a complaint brought by the United States.

Financial sector reforms

Financial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to mitigate the prospects of systemic risks. Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products.

A brief economic overview

India is the world’s second-fastest growing major economy, having clocked growth rates averaging 8.9% in the four years prior to the global financial crisis that began in September 2008. The Indian economy is now poised to resume its fast pace of growth, recovering double-quick from the crisis-induced slowdown. Population growth having come down to 1.5% a year, India’s per capita income is growing at close to 7.5% a year, a rate that will allow it to more than double in ten years. This is a remarkable achievement in human history, with China’s example as the only precedent.

India’s emergence as a fast-growing trillion plus dollar economy has enormous significance for the rest of the world. The remarkable thing about India’s rise is that it is mostly benign and perceived as such by much of the world. It is also true that India faces numerous economic challenges. But India’s new prosperity is indeed trickling down to the bottom of the pyramid. The government’s redistributive policies play a major role - direct tax collections (essentially, tax on personal and corporate incomes) have been growing at close to 30% a year, thanks to lower rates and better tax administration and the government has initiated sizeable rural development and employment schemes.

Considerable emphasis is being given on infrastructure development and urban renewal. New national highways are being built across India, and this road building activity also drives growth in the rural areas. Indeed, highway projects have been a trigger for a state like Bihar, (one of India’s 28 states), to register growth in excess of 11% a year for five recent years.

( Mumbai-Worli sea link)

The Planning Commission pegs investment in physical infrastructure to be a cumulative $542 billion during the Eleventh Five Year Plan period of 2007/08-2011/12. And this is expected to go up further to $1,000 billion over the 12th Five Year Plan 2012/13-2016/17. A steady rise in infrastructure investment is already visible. Infrastructure investment has moved up from 5.4% of GDP in 2005/06 to 7.5% of GDP in 2009/10. The Planning Commission forecasts this figure to climb up to 8.4% of GDP in 2011/12. What is of special interest to foreign investors is the ever more significant role of private investment in building India’s infrastructure. The share of the private structure in infrastructure investment has moved up from 2.2% of GDP in 2007/08 to 2.6% of GDP in 2009/10 and is expected to touch 3.3% of GDP by 2011/12.

( Mumbai stock exchange)

No economy can sustain fast growth without undergoing accelerated urbanisation. The 2001 Census put India’s urban population at 28% of the total. It probably has already moved past 31%. It is a safe bet to expect half of India to live in towns by 2030, which means that over 230 million additional town dwellers. The urban space that is required to accommodate these many additional people would be upwards of 20,000 sq km. While this is a great policy challenge, there is little alternative but to build this required space, to house the fast growing sectors of industry and services. Building new towns as energy efficient, climate-friendly habitats, using mixed land use to minimise commute, extensive public transport, green building codes and green energy would be a policy challenge and a great investment opportunity. India allows 100% FDI in building new townships.

( High rise buildings)

The UN estimates that India would contribute fully a quarter of the addition to the world’s workforce over the next 10 years. India would produce 136 million workers, while China would contribute just 23 million. The main challenge for India would be to ensure that these young people are educated, skilled and productively employed. While school retention rates have gone up over the last five years, raising the quality of education and increasing the proportion of students to who go on to college would be major challenges. India’s education sector offers huge opportunities.

The government has been extremely keen to use public-private-partnership (PPP) to build infrastructure. Thus, national highways, power plants and airports are being built under PPP at great speed. New Delhi’s latest international airport terminal, T3, one of the largest in the world and the fastest built, stands as gleaming testimony to the efficacy of the PPP framework. A national skill development programme is underway, with extensive collaboration between the government and the private sector.

( Public-Private partnership- T3 arrival lounge- IGIA airport)

Thanks essentially to a sustained rise in the demand for food, especially for superior food from rural households due to their additional purchasing power arising from enhanced transfers and new economic activity, India is also facing the challenge of food inflation, in recent times. This is both a problem and an opportunity to raise farm output and boost farmer incomes. While agriculture now contributes less than 18% of gross domestic output, it still employs a little more than half the workforce.

( India’s booming retail)

But is this growth sustainable? Such scepticism is commonplace, given the infrastructure deficits and shortages. But every such shortage is also a growth opportunity and India is putting in place a robust policy and regulatory framework that will allow each infrastructure sector to grow, as the spectacular growth of telecom has shown. India’s tele-density now stands at over 50%, with the 127-fold increase in the number of mobile phone connections from roughly 5 million in 2001 to 635 million by mid-2010 leading the way. It is entirely feasible that other sectors would replicate telecom’s success story.

There is an under-appreciated side to India’s growth story. India saves a little more than one-third its output and invests that much and little bit more, drawing on global savings, to squeeze out 9% growth. Per unit of capital, India produces far more output, thanks to two things: capital is unsubsidised and costly and this forces Indian companies to constantly innovate production processes and business models. India’s pharmaceutical industry’s cost efficiency might have its origins in the erstwhile process patent regime (now superceded by a TRIPS-compliant product patent regime), but its culture of constantly improving its own process continues to pay dividends. Bharti Airtel created a new paradigm in the telecom industry by outsourcing its networks, customer service and much else, focusing on brand building and customer acquisition. Companies around the world have adopted the model now, including Sprint in the US.

( India’s indigenous and world’s cheapest car- Nano)

India’s exports are less than a quarter of its GDP and net exports (exports less imports) are negative. This means that Indian producers depend mostly on the domestic market, making them, for the most part, less vulnerable to economic trouble abroad. The information technology sector, of course, is a major exception.

India depends, again, for the most part on domestic savings for capital formation. Yet foreign capital inflows do play a significant role in the Indian economy: it stimulates the stock market, reduces the cost of debt for large firms with access to global sources, feeds a veritable frenzy of entrepreneurship taking good advantage of venture capital and private equity and, in general, meets the gap between investment and domestic financial savings (a large part of domestic household savings are in a physical form and not available for investment by anyone other than the saver concerned). India’s fast growth attracts a lot of foreign capital. As significantly Indian industry’s outward investment, is also growing proportionately, with India for example, emerging as the second largest foreign investor in London.

India maintains control on foreign debt (total debt stock is roughly equal to total foreign currency assets), its debt service ratio is low (a healthy 5%), the share of short term debt in total debt is about 18%, even as the share of concessional debt in the total has come down by half to about 18% from the early years of the decade. So, foreign creditors have little reason to be concerned by the recent widening of India’s current account deficit, stubbornly below 2% of GDP and even negative in the early part of the decade.

India also regulates foreign investment in some crucial sectors of the economy - banking, insurance, retail, the media, telecom, and so on. The historic record is that most such caps are gradually raised and finally abandoned, over time. Such caution has served India well and it is unlikely that India would be rushed off its feet by any foreign wooer of its domestic opportunities.

For quite some time, it was fashionable to see India as a nation specialising in high-end services, particularly those related to information technology. No more. There is a new confidence in Indian manufacturing - only about 15% of outward investment from India are related to information technology. The world’s lowest cost car was conceptualised, engineered and manufactured in India, not any everywhere else. So, while services still grow faster than industry and account for about 54% of the output, manufacturing is getting only better - in volume and in sophistication.

( ITC Green building, Gurgoan)

Like any other fast developing major economy, India has to further accelerate its growth rate while being conscious of environmental aspect. India’s carbon footprint is small, per capita. The country has also committed to reduce the emission intensity of its growth - units of emissions per unit of additional output - by more than a fifth over the next one and a half decades. Green energy, green buildings, green habitats, greater energy efficient factories, offices and commercial places - these are daunting challenges and, simultaneously, goldmines of opportunity for high-tech firms around the world.

As India grows in size and clout, it will inevitably have an impact on the correlation of forces in the world. While India has no aggressive designs on foreign lands, it is inevitable that India’s defence forces should become stronger and more sophisticated. Larger procurement of advanced equipment leads on to offsets, joint ventures, domestic manufacture and eventually, India-based research and development, drawing on the tens of thousands of engineers who come out of India’s colleges every year, the best among them being world class.

Visitors to India are astounded at the manner in which the physical landscape keeps changing, from one visit to the next. The change that is even more striking than the new airports, roads, metro rail and high-rises that keep getting added is the new mood of optimism that India’s young people, the largest pool of youth in the world, have about themselves and the future.