Author: cprindia

Small towns in India have undergone notable changes in their social and economic landscapes, shaped by urbanisation, rising incomes, and changing social practices. One of the most visible transformation is banquet halls, which have become central to the social life of these towns.

Since February 2024, I have been on the field, collecting data for the study titled Growth Dynamics and Regional Transformation Potential of Small Towns: 40 Years’ Development Saga of Dhampur, India. Dhampur, located in western part of Uttar Pradesh. The population of Dhampur is 50,997 with Hindu 49.63% and Muslims 47.97% (Population census, 2011) and is known for its agriculture and industries particularly Dhampur Sugar Mill. During our visit, I noticed a significant number of banquet halls in the town and its surroundings’, particularly near highways. I wondered why there are so many banquet halls in a small town and their surroundings. To gather more information, I met owners of two banquet halls namely:  – Shubham Mandapam and Gulmohar Palace.

Shubham Mandapam, established almost four decades ago in 1986 by late Shri Mukesh Jain, who started it as a tent and lighting business for weddings and other functions. Over time, it evolved into a banquet hall to fulfil the demand for well-organized, larger-scale events in Dhampur. It is currently managed by Mr. Naman Jain, son of late Shri Mukesh Jain. According to Mr. Jain, the banquet hall industry in Dhampur has seen huge growth in the last few years. He mentioned that at present there are 24 banquet halls within a 10-kilometer radius of the town, with three of these halls located inside Dhampur town itself. Shubham Mandapam operates on 1.25 acres of leased land, for which they pay an annual rent of ₹3.5 lakh to Sitapur Gandhi Netra Chikitsalaya. Because the land is leased, the structures are not permanent; the hall consists of five rooms with tin roofs and an open space used for large gatherings. Despite its long-standing presence in the town, Shubham Mandapam has seen a decline in the number of weddings it hosts. Ten years ago, they used to handle between 100 to 120 weddings annually; today, that number has dropped to around 60. The growth of competitors has made it more challenging to maintain their market share. The rest of the time, the hall is used for birthday parties, anniversary celebrations and other social events such as ‘kirtan’. Besides these events, they also rent the space to a magician for his shows, which run for a month, and to traders for weekly bazaars. Altogether, the banquet hall is in use for around 300 days a year and rest of the days are kept for maintenance.

In contrast to Shubham Mandapam’s organic growth from a tent business, Gulmohar Palace is a modern and planned investment, it caters to the town’s growing demand for upscale event venues. The family behind the venture has long-standing roots in the region. It was established in 2007 by the brother of Mr. Dheeresh Agarwal, who is currently running a shoe store in Dhampur town. Mr. Agarwal was a cricketer and a government employee at ONGC and the Reserve Bank of India and later worked in United India Insurance Company Limited in Dhampur. His grandfather was a zamindar and also ran a sugar crusher from 1950 to 1978. His father was the chairman of the Dhampur Municipal Council and he was also arms dealer and operated a stone crusher, which was closed in 2005. Gulmohar is currently managed by Mr. Agarwal’s elder son, Mr. Mayank Agarwal. Their decision to enter the hospitality industry was because they saw a growing demand for quality venues for weddings and other social events.

Gulmohar Palace was designed with modern sensibilities in mind. To start the banquet, Mr. Agarwal’s family spent 90 lakh rupees, of which they took a 50 lakh rupee loan from the State Bank of India at an interest rate of 12.5%, and for the rest of amount they used their savings. This shows the diversification of capital into new economic activity. The banquet offers 9 rooms, a hall, and an open ground. It also has a family restaurant, which is one of the well-known dining spots in the town. Its establishment reflects the town’s changing aspirations and the increasing expectations of its more affluent residents. Managed by a retired government official, the hall has become a central part of Dhampur’s social scene. While the initial investment in Gulmohar Palace was substantial, the venue has continued to grow in popularity, with plans to expand further by adding additional rooms to accommodate guests.

The increase in banquet halls in Dhampur reflects larger economic and social changes that may be happening in small towns throughout India. Both owners of banquet halls mentioned various reason for the demand for banquet halls.

Population growth: As the population increases in urban areas, the number of weddings also rises, leading to a higher demand for event venues.

Impact of urbanisation

As cities expand and penetrate nearby rural areas, villages around Dhampur are increasingly exposed to urban lifestyles and social practices. This exposure is one of the major reason behind the shift from home gatherings for family celebrations and weddings to using a banquet hall. Improved roads, better public transport and higher personal means of transport ownership such as car, motor bike, tractor etc. have enhanced connectivity between rural and urban areas and it is another important reason behind this shift that enables residents of nearby villages to come to the town to attend social celebration in these banquet halls.

Convenience

Hosting events in banquet halls is seen as more convenient, as it reduces the logistical challenges of arranging tents and other necessities at home.

Additionally, fewer people are available to assist in managing larger occasions, making banquet halls a more practical choice.

Changing social trends

Previously, weddings involved extended family participation over several days. Now, guests tend to arrive on the wedding day itself, leading to a preference for well-organized, shorter-duration events.

Impact of increased disposable income

Demand of banquet hall is supported by the increase in disposable incomes. Economic growth in cities has allowed families to spend more on weddings and celebrations, and this trend is also spreading to smaller towns. Even in rural areas, rising incomes of farmers due to agro-based industries and remittances from family members working in cities have contributed to the growing demand for banquet halls.

Impact of higher education

The younger generations prefer more organized events which has increased the demand of banquet halls. Higher education has played a key role in shaping these aspirations. As more people become educated, their exposure to new ideas and modern practices increases. They are influenced by city life and want to bring that level of change to their own celebrations.

Operational challenges

Mr. Jain highlights that running a banquet hall may seem like a profitable business, many entrepreneurs underestimate the operational costs involved. The owner has to follow the rules and regulations and have to register for multiple licences, like – to take NOCs from fire department, electricity board and FSSAI also they have to register for GST and MSME.

In terms of taxation both the banquet hall has to pay GST and every year they have to pay Rs 8000 under Sarai Act additionally they have to pay property tax, since Shubham Mandapam operates on leased land and does not have permanent structures, it is exempt from property taxes. However, Gulmohar Palace has to pay property tax for its permanent structure.

One of the biggest challenges these venues face is workforce management. Both halls rely heavily on informal labor, particularly for events. Shubham Mandapam employs four permanent workers for cleaning and maintenance, and hires additional staff on an as-needed basis from Dhampur tehsil. On the other hand, Gulmohar Palace employs 25 permanent workers, 80% of them are from Nepal, with the rest come from Dhampur and nearby areas. It has been noticed that in food sector most of the workers are from Nepal.

Managing a temporary workforce poses several difficulties, including inconsistency in service quality and the logistical challenges of providing food and lodging for the workers for permanent workers. The owners of both banquet halls noted that all the working group are of male workers, the entrepreneurs mentioned, it’s very challenging to hire female workers because safety for women is still a major concern in this field.

The growth of banquet halls in Dhampur is a small example of the bigger changes happening in small towns across India. These banquet halls create jobs and represent modern living and social status, showing how the people of Dhampur are changing their hopes and dreams. As Dhampur continues to grow, the banquet hall industry will play a big role in shaping the town’s social and economic life as it is likely to help in other small town and surrounding villages across India.

For over half a century, the Centre for Policy Research has been at the heart of some of the most significant policy discussions in India. 

From the Archives is an attempt to reconstruct CPR’s history from its archival records and chart its journey. The series will revisit CPR’s research initiatives, publications, and interactions with national and global policymakers, which have helped it mount the challenge of inclusive, actionable change. 

How We Started

Dr. Vishwanath A Pai Panandikar established CPR in the year 1973 in a commercial building in Vasant Vihar. Having worked at various ministries of the Indian government, Dr. Panadikar observed anticipatory shortfalls in the country’s policy-making mechanisms. He founded the institution with a vision to foster better policy planning and remedy this gap. From its outset, the Centre has been a space for holding seminars and conferences, conducting research, and promoting education aimed at maximising national resources and channeling a more robust public discourse. 

Research Areas 1980-84

 

During the early 1980s, the Centre responded to several key issues of topical relevance. It worked extensively on formulating strategies for social and economic development. For this, the Centre undertook collaborative projects to outline the role of bureaucracy and understand citizen participation in India’s growth story. The projects sought to draft ways of closing the gap between administrators and common citizens to drive synergic development.

 

Through its external associations, CPR also facilitated research and dialogues on nation-building, national security, regionalism in Asia, non-alignment in a bipolar world, nuclear weapons, and India’s cooperation with its neighbours. The Centre collaborated with the UN and its agencies, SAARC, and other foreign and local organisations to rise to the occasion. 

The Centre also engaged with rural industrialisation and started an action-research project in the Alwar district to enhance the industrial capacity of rural areas and develop policy actions for integrated rural development. The public policy discourse of the 1970s and ’80s India was gripped with visible anxiety about the rising population. The Centre also made academic contributions on this subject through numerous research outputs and developed blueprints for people-centric, integrated family planning programmes.

This is the first edition in this series. Stay tuned for more!

IN MEMORIAM

Dr. Manmohan Singh (1932 – 2024)
Former Member of the Governing Board
Centre for Policy Research, New Delhi

We join the nation and the world to condole the demise of Dr. Manmohan Singh, former Prime Minister of India.

It is difficult to summarise his manifold contributions to nation-building and the way he nurtured institutions. They were transformative and pivotal in shaping today’s India, across multiple dimensions.

A man as wise and knowledgeable as he was humble, CPR was fortunate to have his guidance as a board member in our formative years. As our Founder – President Dr. Pai Panandiker recalls, Dr. Singh was a keen participant in ideating the institution.

We join millions across the world who not only mourn his passing but celebrate this great son of India.

We extend our heartfelt condolences to the bereaved family.

There is an increasing policy engagement and advocacy emerging from various fronts on the possible European commitments and collaboration in the management of India’s river basins. One of the key learning experiences that is often suggested in this context is to reflect on Europe’s policy frameworks and institutional structures for improved outcomes from India’s river rejuvenation programmes. In India, the past decade witnessed an unprecedented focus and budgetary support by the Government of India (GoI) on river restoration, starting with the Namami Gange Programme (NGP). India is contemplating expanding Namami Gange’s experiences into a policy ecosystem to revitalise its rivers. The Ministry of Jal Shakti (MoJS) recently commissioned a large-scale study on assessment and management plans for six river basins in India, namely Mahanadi, Narmada, Godavari, Krishna, Cauvery, and Periyar, for improved river management along the lines of the NGP. In this context, how does the European experience offer insights to inform programmes like the NGP? In this commentary, we briefly outline some of the legal and institutional facets of the European experience and the lessons it holds for India.

European Cooperation on Rivers

The European experience of managing its river basins in the post-World War II period is often considered an exemplary case of regional cooperation in the management of freshwater ecosystems. This has resulted in the implementation of several legally binding directives, most notably the adoption of the European Water Framework Directive (EU WFD) in 2000 and Flood Directive (FD) in 2007. The EU WFD has proven to be a pivotal piece of legislation in Europe’s history, reflecting the Union’s commitment to cooperative transboundary water management. Though the EU WFD appears to be a standalone legislative framework for water management, it reflects historical lessons learned from cooperation over important river basins —  most notably the Rhine and the Danube river basins.

Early Experiences

Some of the earliest evidence of formal cooperation dates back to 1815 when European nations came to an agreement over navigation on the river Rhine towards the end of the Napoleonic wars. This culminated in the Final Act of the Congress of Vienna. Article 108 ¹ of the Final Act resulted in the constitution of the Central Commission for Navigation of Rhine (CCNR). Subsequently, the Mainz Convention of 1831 and Mannheim Convention of 1868 accommodated various riparian concerns regarding Rhine navigation, but under the same spirit and principles embedded under Article 108. Cooperation over the Rhine became a template for other larger European river basins such as the Danube and Elbe. Moreover, the legal framework established to facilitate cooperation among the Rhine Basin countries manifested in the Rhine being the most used trade route in Europe for inland navigation underlying the economic prospect of cooperation over its waters.

Institutional Adaptation: From Economic Rationality towards Managing Environmental Risks

These early instances, however, created consequences affecting the aquatic health of the river — notably, increasing river pollution and the dwindling salmon population. With the conclusion of World War II, the situation worsened.

The major European economies — coincidentally the Rhine Basin states — steadily shifted their focus on deteriorating water quality. The International Commission for the Protection of Rhine (ICPR) was established in 1950 through the cooperation of France, Germany, Luxembourg, The Netherlands, and Switzerland towards restoration of the river. However, only in 1963, 13 years after its inception, ICPR obtained legal personality ² at the Berne Convention through Article 6.2, which endows it with rights and obligations – allowing ICPR to act independently and being represented by its Chairman. The Presidency rotates among the Rhine basin states every three years. According to the Preamble of ICPR, the goal of the Convention is to increase multilateral cooperation to facilitate sustainable development of the Rhine ecosystem. Initially, ICPR’s scope was narrowly restricted to addressing water quality concerns. Later, it expanded its focus and undertook a broader role which fundamentally altered the pathways for Europe’s water management paradigm. 

Imprint of the Rhine Cooperation on EU’s River Basin Management

Europe’s early experiences in managing large river basins like Rhine and Danube bolstered the development of important regional directives in the EU for environmental management – the most prominent being the EU WFD. Reflecting on the early European experiences illustrate that European member states developed adaptive management techniques from the Rhine experience that helped advance these regional directives. In this regard, three broad insights emerge:

• Learning from History: The success and frameworks established for the Rhine have significantly influenced the EU’s approach to water management. The collaborative approach to managing the Rhine has shown the benefits of transboundary cooperation, including improved water quality, restored ecosystems, and reduced flood risks. These successes have reinforced the EU’s political commitment to cooperative water management, shaping broader EU water policy. The early experiences with the Rhine navigation established interdependencies over time and manifested in the creation of transnational institutions, flourishing trade, and heightened consultation efforts.
• Setting Precedent: The Rhine cooperation efforts highlighted the need for preventive measures to protect water quality and ecosystems. Protection of Rhine water quality through the deployment of various economic and legal instruments, and its satisfactory implementation proved to be a guiding force behind  EU’s environmental policy. Techno-legal instruments such as the Polluters Pay Principle, No Harm Rule, Precautionary Principle, Sustainable Development Principle, etc. emerged from the experiential wisdom accrued through the management of the Rhine and other important river basins. These environmental principles serve as the core aspects of EU environmental law and transboundary water management. For example, the allocation of costs based on the Polluters Pay Principle among the Rhine Basin States, as well as the industries located along the banks of the river contributed to the Rhine Action Programme. On a similar note, the No Harm Principle ³ was operationalised by ICPR as it played a pivotal role in the cooperation between the upstream and downstream Rhine basin states for pollution control measures.
• Institutionalisation of Cooperative Mechanisms: The River Basin Management paradigm in Europe was a gradual and incremental process. Insights offered by the functioning of the CCNR and ICPR have been central in shaping the approach taken by the EU’s management of its large river basins.  For example, the River Basin Organisation constituted to pursue Integrated River Basin Management (IRBM) as mandated by the EU WFD is a culmination of various institutional practices that emerged from the functioning of ICPR and CCNR. In addition, the other single most important criterion for pursuing river basin management is to ensure coordination and cooperation across geographies and political actors. The Rhine experience greatly benefitted and advanced this cause. The international cooperation effort and its eventual institutionalisation for the Rhine restoration programme, have produced protocols for monitoring, data management, and coordination mechanisms.These protocols include consensus-based measures to maintain high-quality data standards – making it accurate and reliable. These efforts paved the way for the adoption of the EU WFD and  played a vital role in achieving the WFD’s ambitious water quality and ecological objectives.

India’s experience with NGP and what it can learn from the Rhine

In the Indian context, the National Mission for Clean Ganga (NMCG) has taken some important steps in rejuvenating the Ganga Basin. NGP, in its current avatar, aims to address diverse pollution sources by including the entire basin as a unit of governance. The Ganga River Basin Management Plan (GRBMP), prepared by a consortium of seven IITs, is credited with its usefulness for planning in Ganga and remains foundational for the NGP. Like the Rhine experience, the Ganga rejuvenation started with modest and narrow efforts.  It was only in 2016 that the effort received a significant legal fulcrum. Prior to 2016, NMCG had limited functional scope, restricting its role to funding specific projects for the Ganga Basin. It did not have a mandate to take cognizance of any threats to the Ganges or the power to issue directions to the concerned authorities/polluters. In 2016, under the Environment (Protection) Act of 1986, the role of NMCG was strengthened to enforce laws regarding pollution control in the Ganges Basin. NMCG is now a fully functional authority that is both a regulator and an implementer in pursuing the management of the Ganges Basin towards improving the ecology and aquatic health of the river. Besides pollution abatement measures, it is making a promising effort to improve river-city connection through the Urban River Management Plan (URMP), standardizing data collection protocols, etc. In this context, NGP offers opportunities to establish itself as a template for India’s river rejuvenation goals.

Way Forward

More than anything, the Rhine and the larger European experience offers two critical lessons — a legal framework developed through a consensus-building approach and the constitution of a legal authority which should be supplemented by institutional and deliberative mechanisms. In this aspect, NMCG is still at a nascent stage. The formidable task for NMCG would be to address some of the complex areas of the river rejuvenation programme — such as inter-state and centre-state cooperation, that would be required for pollution management, especially its core aspects of infrastructure finance, and data sharing architecture. All this would require cooperation across scales and would be crucial in sustaining the programme post the mission life of the NGP which is slated to end in its current capacity in 2026. 

 

This blog is part of an ongoing project on Rejuvenating India’s Rivers, in collaboration with the National Mission for Clean Ganga (NMCG).

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1. Final Act of the Congress of Vienna 1815, Article 108 (CVIII) stipulates that when the states are separated or traversed by the same navigable river, the navigation related powers must be regulated by common consent.
2.  Legal personality gives an organisation its own legal standing in the court, i.e. ICPR is formally recognized as a legal entity and can be legally represented by its chairperson.
3. No Harm Principle obligates parties to not have any adverse impacts on the other in a cross-jurisdictional setting and particularly directed to the upstream states.

Summary

The YouGov-Mint-CPR biannual surveys are conducted by Mint in association with YouGov India and Centre for Policy Research. This collaboration began in 2018 with the aim of assessing the beliefs, choices and anxieties of India’s young urban population.

The 12th round of this survey was conducted in July 2024, with 10,314 respondents across more than 200 towns and cities. In this latest round, 45% of the respondents were post- millennials (born after 1996) and 39% were millennials (born between 1981 and 1996).

In the last few months, the findings from this 12th round were published in Live Mint in a seven part series. Four of these articles were authored by Rahul Verma (Fellow, CPR) and Melvin Kunjumon, and have been summarised below. The full survey is linked here.

 

Polls and Perceptions: The 2024 Lok Sabha Election

The findings of the 12th YouGov-Mint-CPR Millennial Survey conducted in July 2024 found little change in BJP’s approval rating in urban India with 46% respondents choosing it as their most favoured party, while Congress trailed at 15%. 

The BJP garners its lowest proportional support from economically disadvantaged groups, and scheduled castes and tribes. In terms of voter outreach, the BJP fared better (with one-third respondents responding positively) than Congress (reaching slightly less than a quarter respondents). 

On Rahul Gandhi’s emergence as a serious opponent, slightly more than half the respondents reacted favourably. When asked about the INDIA bloc’s ability to mount an effective challenge to the BJP in the incumbent government, about two-fifths responded in favour as against 29% in December 2023. The data suggests that the BJP’s public appeal has weakened among the lower socio-economic strata and that Modi’s popularity may have peaked. 

 

Democracy Check

The second set of findings deals with determining the people’s faith in the electoral machinery. When asked about the fairness of the 2024 Lok Sabha elections, 58% people confirmed their faith while 42% responded negatively. A significant number of respondents, about every 3 in 5, supported the continued use of EVMs dismissing the allegations of rigging.

On being questioned whether the media gave favourable coverage to the BJP during its election campaign 54% respondents agreed, while 46% believed the coverage was fair. Surprisingly half the surveyed BJP supporters also affirmed that the media favoured the BJP. 46% respondents questioned the integrity of exit poll projections and claimed that the forecasts were fraudulent.

One-third respondents maintained that holding multiple elections was unresourceful, while another one-third held that staggered elections strengthen democracy. 41% of BJP supporters viewed multiple elections as wasteful, against only 24% of Congress supporters.

The survey findings are indicative of how party affiliations shape popular perceptions on electoral issues. BJP supporters exhibit greater trust in ECI, EVMs and exit polls, while Congress supporters are more likely to be skeptical.

 

Social Media and Politics

Another data set found that Politics was the 5th most popular topic on social media among respondents after Lifestyle, Science and Technology, Sports, and General Entertainment. 

Similar to the previous round (conducted in December 2023), educated younger respondents with high incomes and strong partisan leanings tended to be more active in political discussions on social media. However, the latest round conducted right after the 2024 Lok Sabha elections, found an increase in negative interactions online, with the sharpest increase among post-millennials, from 34% to 41%. Respondents belonging to minority groups were more likely to report online harassment. 

The respondents also showed a trust deficit in social media influencers and posts along with Whatsapp messages for information. Newspapers were the most trusted, followed by TV channels.

 

A Welfarist Budget?

The concluding survey focused on understanding the opinions of urban Indians on governmental budgetary priorities. The survey asked respondents to give their preference from paired policy questions. 70% participants favoured investment in free healthcare and education for the poor over public infrastructure, and prioritised rural development to building big, global cities. 

To gauge these preferences, the survey asked respondents to allocate a hypothetical government budget of 100 Rs. across public hospitals and schools, creation of government jobs, investment in public infrastructure, growth of big businesses, and direct cash transfers to the poor. The results showed that respondents least preferred cash transfers and were the most favourable to improving conditions of governments schools and hospitals.

Finally, the survey also tried to assess whether people associate personal economic anxieties with the performance of the government. To the question of whether it is harder to find jobs across demographics, respondents reported that compared to the survey conducted in December 2022, finding jobs was harder in 2024. 

 

Source Table 4a in Annual Survey of Industries 2021-22: https://mospi.gov.in/sites/default/files/publication_reports/ASI%20Volume%20I%202021-22%20%20Final.pdf

There has been a long-running discussion about the low and falling female labour force participation, especially in the non-farm sector. Simultaneously, it has been claimed that industrial growth in India has not been labour intensive. So, the question arises – does the nature of industrial growth, whether it is capital or labour intensive, affect the gender composition of the workforce, e.g., do capital intensive industries have fewer women workers?

To answer the question, we turn to the Annual Survey of Industries, which collects information from a relatively formal group of industries, i.e., units with ten or more workers (with power), or twenty or more workers without power, registered under Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948 or the Bidi & Cigar Workers (Conditions of Employment) Act, 1966. Some large units registered under other acts are also included but, the survey excludes small unregistered units.

Within this group of units, the figure above shows that industries that have a high share of women in directly employed (i.e., non-contractual) women workers, e.g., garments (28%) textiles (16%), food (13%), tobacco (6%), leather (6%), and electronics (2%) do indeed have lower capital intensity (the available data does not allow us to investigate this for contractual workers[1]). Industries where the share of women is above average (dotted line) all have a capital intensity of less than ₹ 0.2 lakh per worker. The figures in parenthesis show the share of women employed in that industry to total female employment and these six industries together employ over 70% of the female workforce (which is why the average is where it is, though many industries have lower shares).

So, the answer is yes, capital intensive industries do indeed employ fewer women and that an increase in labour intensive manufacturing may have the additional benefit of boosting female labour force participation.

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1. It is possible that that the regular workers are more likely to be male and if so, the use of regular workers understates the female-intensity of the workforce, but unless this varies systematically across industries, the conclusion would continue to hold.

Bibek Debroy (1955-2024)

Around mid-2002, I managed to airdrop myself onto the lap of Prof Bibek Debroy (1955 – 2024) as his ‘colleague’ at the Rajiv Gandhi Institute for Contemporary Studies (RGICS) where he was the Director. For a little while I was apprehensive and wondered how long he (‘Bibek’ to his friends) would tolerate me for I was not his choice. Within a couple of weeks he put me at ease and I spent the next four years working closely with him. He very quickly integrated me into the Institute’s work and much later he was also instrumental in bringing me to CPR, once again to be his colleague!

The reports of his death tried to measure the void he left behind and the obituaries by well-meaning scholars are gratifying. More can be added from his public persona but what about the man, Bibek Debroy? Though he walked in the corridors of power and privilege and rubbed shoulders with the rich and famous, he never lost the common touch. And he could be affectionate and caring to people he worked with; he would find nice things to say about his employees who were below the hierarchy.

For two decades, Bibek was my friend and mentor, and also a teacher who never lectured his ideology down my throat. But, truth be told, as the years passed by, thanks to him, I understood the value of limited government, not so much as an article of faith, but as the least detrimental system. The canard that he supported anti-people policies wouldn’t hold much water because the man was decent enough and intelligent enough and ‘pro-people’ enough to advocate liberal policies, firmly believing that they would help people.

He was always reserved, even in his unguarded moments; he wouldn’t reveal much about himself, nor would he ask others about theirs. For people closer to him, he was caring, offering a way out in delicate situations. A minor health issue? Why not take some German-made homeo drops, usually that of Adel brand’s?

We are deeply anguished by the commentary in the media casting aspersions on CPR’s integrity, objectivity and its commitment to engage with ideas that matter to the nation.

This reportage betrays ignorance of CPR’s provenance, its passion for evidence-based policy research, its rich traditions of accommodating multiple perspectives, promoting debates to inform policy thinking and shaping public discourse.

These qualities have built CPR’s reputation across the world for impartiality, probity and penchant for encouraging diverse views.

CPR has always strived to strengthen India and its institutional processes. We also take our obligation to promote public interest very seriously. We have already appealed against the allegations in the courts. We reaffirm our complete faith in the country’s judicial processes.

 

Source: https://www.mospi.gov.in/sites/default/files/publication_reports/ASI%20Volume%20I%202021-22%20%20Final.pdf
(Table 4a)

The share of contract workers in organised Indian industry is rising relatively rapidly. From just under 22% percent in 2001-02, it has risen to over 40% in 2021-22.  But the share of contract workers differs across industries, from well over half in industries like beverages (54%) and the production of salt (67%) to less than one fifth in garments (12%) and textiles (18%).

This information can be found in the Annual Survey of Industries (the latest version being 2021-22) brought out by the Industrial Statistics wing of the National Statistical Office. There is also a lot of other information in the document, one of which is wages paid to the workers 

So, does the variation in the use of contract workers differ across industries because of the difference in cost of workers (wages) across them? The figure above plots the average annual worker wage (this includes both contractual and non-contractual workers) versus the extent of use of contract workers. As can be seen, the extent of contractualisation appears to rise with the increase in wages. This is to be expected if contract workers cost less than regular workers, with a rise in wages leads to substitution of regular workers by contract workers.  

Of course, there are many other factors that will determine the extent of contractualisation, which will emerge in a fuller analysis, e.g., the extent of embedded skills in workers. An industry where such worker-specific human capital is high will have more difficulty substituting regular workers by contract workers. Industries with such worker-specific human capital are also likely to pay workers more and this will lead to an association of higher wages with lower contractualisation, the opposite of the posited relationship. The fact that it is not evident may indicate that such effects may not have a strong impact.

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 1. It should be noted that the inclusion of contract workers would reduce the average wage in industries with high share of contract workers and would bias the data against the hypothesis. The fact that the relationship remains evident despite this indicates a strong underlying relationship. Information on wages paid to contract workers is available in what is called the unit level data but accessing that is a too complicated an exercise for this blog, which focuses on readily available data. There are existing works that examine such data in detail, e.g. Singh, Bir (2023) India’s Informal Economy Contractual Labour in the Formal Manufacturing Sector Routledge, London.