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DEMOGRAPHIC CHANGE IN THE

L A B O R F O R C E AN D I T S
I M P L I C ATI O N S I N T H E I N D I A N
CONTEXT
Final report
For partial fulfillment of requirements for
"Business, Government and Society" PGP 2014-16

Submitted by

GROUP NO. 05 SECTION D


Ajay Kumar 1411211
Ajosh K 1411212
G Nitin 1411224
G Subramanian 1411225
Iyer Abhiram Ramgopal 1411234
Natarajan R 1411247
Rupali Kaul 1411259

ABSTRACT
With a booming population and a favourable demographic dividend to look forward to, India
faces an unprecedented opportunity in its labour force to spur economic development. This
report looks at the Labour force through the four vital parameters of age, urbanisation,
gender and education in order to study the trends prevalent in the Indian population as well
as to hypothesize reasons for the same. In order to validate the findings, 19 people working
in different sectors and having very different backgrounds were interviewed to understand
the changes from their perspective.
The slums of Bilekahalli were visited and depth interviews conducted with questions focused
on understanding the implications of Age, urbanization, gender and education on the labour
force. Apart from that, in order to understand the labour force within IIMB, a few people were
interviewed who we come across daily in order to get their perspective. Finally, an interview
was conducted with Prof. Unni, the Director of IRMA to get an academic perspective of the
Indian Labour Force.

TAB L E O F C O N T E NT S
ABSTRACT............................................................................................................................................................... 2
INTRODUCTION...................................................................................................................................................... 5
Objectives....................................................................................................................................................... 5
METHODOLOGY..................................................................................................................................................... 5
Secondary Research....................................................................................................................................... 5
Field Work and Inferences.............................................................................................................................. 5
OBSERVATIONS AND FINDINGS........................................................................................................................... 6
Age.................................................................................................................................................................. 6
Urbanisation.................................................................................................................................................... 7
Education........................................................................................................................................................ 7
Gender............................................................................................................................................................ 8
CONCLUSIONS....................................................................................................................................................... 9
REFERENCES....................................................................................................................................................... 10
Appendix 1: Population Summary Statistics...........................................................................................................11
Appendix 2: Age Pyramid in india (estimates and projections)...............................................................................12
Appendix 3: Urbanization in india and china...........................................................................................................13
Appendix 4: Percentage of Usually employed peoply by type of employment in urban areas...............................14
Appendix 5: Trends in School Education in India...................................................................................................15
Appendix 6: Workforce profile in India....................................................................................................................16
Appendix 7: Mortality and fertility theory.................................................................................................................17
Appendix 8: Female Labour Force Participation in India........................................................................................18
Appendix 9: Field Work Summary..........................................................................................................................19
Interview SAMPLE I...................................................................................................................................... 19
Interview SAMPLE II..................................................................................................................................... 19
Appendix 10: Summary Demographic Statistics from Slums in Billekahalli............................................................25
Appendix 11: Phone Call Transcript with Prof. Unni, Director of IRMA...................................................................26
Gender.......................................................................................................................................................... 26
Urbanization.................................................................................................................................................. 27
Education...................................................................................................................................................... 28

INTRODUCTION
One of the most critical resource of any country is its population which can be analysed
using standard demographics in order to assess the impact on economic growth. As
population demographics and economic development are closely interlinked, a close study
of the causal linkages as well as the role of the various stakeholders needs to be conducted.
India, with a population of 1.21 billion ([1], 2012 -13), according to the 2011 census with a
working population of 481 million. While the population had increased 17% over the last
decade, the work participation rate only grew at a marginal rate (39.8% vs 39.1%). The
summary statistics for the country are shown in Appendix 1.
The growing population translates into a large demographic dividend for the country and can
be taken advantage of for sustainable growth. Research ([2] Mason, September 2006)
indicates 0.79 % out a total of 1.88% growth in GDP per person was a result of demographic
dividends. The report looks at the trends in the population of the country at a macro-level; as
well as conducting a field research in a slum at Bangalore.
OBJECTIVES:
In this project, the Indian Labour force has been analysed through various key demographic
parameters. The key objectives of the project were:
1) Age: Understand the linkages between population growth, the age pyramid and
economic development
2) Urbanisation: Critically analyse a) factors that impact urbanization and b) trends in
Indian urbanization
3) Education: Study trends in educational requirements & skill development and
implications on the labour force
4) Gender: Evaluate the major reasons that lead to gender disparity in the Indian labour
force and analyse its implications

METHODOLOGY
SECONDARY RESEARCH:
The report has looked at various secondary sources in order to gain insights into vital trends
that have already been highlighted. Issues like the demographic dividends, population
fertility rates, trends in urbanisation and migration, gender disparities in the workforce and
finally supply-demand mismatch of skills in the workforce have been studied. Empirical
theories were looked at from Debraj Roys Development Economics ([3]Roy).
FIELD WORK AND INFERENCES:
In order to validate the findings and inferences obtained, targeted field work was conducted
in the slums of Bangalore. A total of 19 people from diverse backgrounds vis--vis age,
gender, educational background, occupation were interviewed in order to gain vital insights
in the ground level. The details and focus of the field work have been given in Appendix 9,
with the summary statistics of the slum given in Appendix 10. Apart from this, an interview
was conducted with Prof. Jeemol Unni, Director of Institute of Rural Management, Anand
(IRMA) in order to gain further insights. A transcript of the interview is given in Appendix 11.

Some observations from the field work are given in the next page.
Mr. Narayanappa felt that urbanisation and subsequent competition has increased over the
past 15 years. He used to employ around 10 people earlier (currently 4). Several people had
migrated from North India and hence, his individual profits have decreased.
There was limited transfer of skills and expertise between generations. Mr. Narayanappa
and Mr. Palani felt that the current generation was not interested in handiworks and crafts,
resulting in lower skill transfer.
There was no standard mechanism to seek employment. People seek employment by
word of mouth or through contractors who approached the slum directly. Many people were
not aware of the schemes/benefits provided by the Government in terms of employment.
The people at the slum were mostly illiterate. However, they were ready to impart quality
education to their children who in turn were disinterested in the same. Many people felt that
there was a direct correlation between education and employment.
Most of the interviewees were not in support of women employment. The common reasons
quoted were need for safety, lack of interest amidst women.
Mr.Chakaravarthy felt that for Government schemes to be effective, the local ward
councillors and the MLA have to take initiatives to implement them effectively, which he
believes they currently dont. Most people in the slum have been part of multiple Dharnas to
convey their issues and get the attention of local government authorities.

OBSERVATIONS AND FINDINGS


AGE:
The current total fertility rate (TFR) has been estimated at 2.51 births per woman ([4], n.d.).
While this has been in decline over the years, it is still higher than the replacement TFR of
2.1. Thus, India can be seen to be at the starting phase of the demographic transition
phenomenon. Indeed, if we look at the Age Pyramid exhibited by the country (as shown in
Appendix 2), we see that even projections made by the world bank pegs India to reach the
intermediate stage only by 2050.
Thus, the country has the unique opportunity to benefit from both the first demographic
dividend as well as the second demographic dividend. In the first, as more youth (less than
15 years of age) enter the working force population(15-60 years of age) , the dependency
ratios decline, which frees up resources and boosts economic growth. This would actively
continue until the second dividend becomes feasible, when the elderly population (60+
years) increases due to improved health care and increase in life expectancy.
However, carefully promulgated policies are essential to make use of both the dividends.
While an increase in the workforce population is desirable, a skill mismatch in terms of
labour productivity would mean that the full effect of the dividend would not be captured. The
dividend only ensures a boost in the supply side; the demand side has to also be nurtured
through careful government policies facilitating skill development and motivating higher
investment in the secondary and tertiary sectors.
An elderly-concentrated population would require additional resources to sustain itself after
retirement. If the government subsidises these through higher pensions, higher social
securities, etc. then the propensity to save assets for such a prolonged retirement reduces.

Hence, emphasis should be given encourage the working class to facilitate savings and
investments that would cause a sustainable boost to the economic development.
URBANISATION:
The growth of population living in cities and the propagation of urban life to every part of the
habitable world is one of the characteristics of the twentieth-century life. It is not simple to
precisely define what constitutes an urban settlement. Statistical parameters such as size,
density of population and occupation come in handy however in practice the criteria used are
usually arbitrary ([5] Johnson). The Indian census takes 5000 as the threshold population of
defining an urban centre. The other criteria are- density of more than 400 people per square
km. and percentage of male non-agricultural worker above 75 percent ([6] Kundu, 2011).
Urban area since 1951 has been the engine of productivity and growth in the Indian
economy. The contribution of urban sector to the GDP in 2012 had been 62-63% and is
foreseen to be 75% by 2021 ([7]). As seen in Appendix 3, the growth of urbanization in India
has been muted, with China having increased from 39% to 53% from 2002 to 2012, with
India achieving an increase of only 3.41%. The prime reasons for this has been
inadequate growth in non-agricultural sectors, stagnation in manufacturing sector,
persistence of problems related to housing and other basic amenities faced by people in
Urban areas ([6] Kundu, 2011). Urbanisation in India was further slowed down due to
incorporation of NREGA in 2005 as indicated by the interview with Prof. Unni.
If we consider the reasons for migration to the urban areas, we see that both rural push as
well as demand pull migration existing in the country. On account of the rural push
phenomenon, the unskilled and uneducated migrants form a poor strata of the urban society,
working in informal sector. This has also been shown in our survey, where the attraction of
marginal income from the casual work in urban areas is more lucrative than the sporadic and
starvation diet provided in rural areas. Lower the education of migrant greater is the push
factor, and higher the education of migrant greater is the pull factor ([8], 2010). Other
parameters which determine population being pushed from rural areas are higher family
size, gender (men) and income (SCs and STs fare lower than general in average income)
([8], 2010).
Touching further upon the laws of migration as enunciated by Ravenstein, we see that the
Currents of Migration theory being upheld in the country, with the uneducated migrating
only a short distance. The government can fasten the flowing of this current by improving
public services, and developing larger number of small towns closer to rural areas. In case
government proves steadfast in investing in small and medium towns, nations ICOR will
increase as industries will find an alternative source of cutting down on operational and real
estate cost ([8], 2010).
Finally, looking at the trends set by urbanization in India in general, we see that there has
been an increase in self-employed segment, and an increase in casual employment arising
from the concept of large companies contracting our work rather than hiring workers (as
demonstrated in Appendix 4. . Bargaining power of regular labourers through the
legalization of trade unions, and inability of companies to fire workers makes casual
employment prevalent in todays picture. And while Urbanisation has been elixir of poverty
removal and the biggest off-setter of inequality in India, with over 40 percent of poor moving
above the Poverty Line, and 11 percent of poor moved in the middle class ([9]), it has also
led to a tremendous strain on facilities such as transport services, traffic, housing, water &
electricity supply and sanitation. Large-scale migration to selected cities rather than holistic
growth of urban centres is a threat to environment as it degrades of nature faster than it can
recuperate.

EDUCATION:
As explained earlier, India has a unique opportunity to tap into a demographic dividend,
having been estimated to have a surplus of 47 million youth in 2020, when the world would
experience a shortfall of skilled manpower to the tune of 56 million ([10], 2014). We can also
see that the share of primary sector towards GDP has decreased from 51% in 1950-51 to
17%, and the share of tertiary sector increased to 56% in 2012-13 ([10], 2014). The skills
required in different sectors are quite different and thus sector specific skills training is of
paramount importance.
Analysing the trends observed in formal school education (Appendix 5), we see that there
has been an increase in the ratio of students to countrys population (SPR) from 20.5%
1993-94 to 26.6% in 2009-10. The SPR (for rural females in the age group of 5-24 years) in
1999-00 showed variation with household expenditure, with 22% difference in SPR between
the rich and the poor. However during 2009-10, this disparity was brought down considerably
through the Right to Education Act and the Sarva Shiksha Abhiyan scheme.
Of the 459 million workers in 2009-10, self-employed accounted for 233 million, 151 million
were casual workers, and 75 million were regular employees. The educational levels of
these classes of workers were notably different with the percentage of illiteracy among selfemployed, casual and regular workers were 44%, 30% and 8% respectively ([11], 2012).
Casual workers belong mostly to the poor households, whereas regular employees
predominantly feature in the rich households. The self-employed are heterogeneous in their
distribution across households (classification based on expenditure).
There was a notable change in the education profile for various classes of workforce from
1999-00 to 2009-10.For the self-employed class of workers who joined the workforce in the
first half of this decade had 20% illiterates whereas in the second half, the proportion of
illiterates in the self-employed category decreased considerably as shown in Appendix 6.
For the regular workforce, 50% of the net additions comprised of illiterates and people with
primary and middle school education from 2000-01 to 2004-05. However, a remarkable
change in the trend was observed from 2004-05 to 2009-10, the number of graduates and
post graduates in the regular workforce showed an incremental increase of 7 million
whereas the incremental numbers of both illiterate and primary & middle school workers
decreased during the time period as shown.
A similar trend in education levels was visible for casual workers in terms of number of
illiterates entering/leaving the workforce. The difference in numbers is attributed to the
change in demand for workforce by the industry. Better opportunities were available for
educated labour force as illiterates had to exit the workforce due to increased demand for
skilled labourers, taking into account the sectorial shifts in the economy with services sector
contributing 57% of GDP ([12], n.d.). In spite of a higher contribution by the services sector,
agriculture and allied activities still employed 244 million of 460 million of Indian workforce
(53% of workforce) in 2009-10 ([13], n.d.), while the corresponding figures for China was
37%.
For Indian economy to grow at 8-9 %, the secondary and tertiary sectors must grow at close
to 11%, assuming the current agricultural growth rate of 4% to persist ([14], 2010). This
situation necessitates the migration of workforce from agriculture to secondary and tertiary
sectors where the skills required are diverse across sectors and inherently different from
agricultural skills.
GENDER:

India has been a witness to high amounts of gender disparity in womens economic
participation. The labour force in India is highly skewed towards the male gender. This is
especially so at higher positions and gives rise to the proverbial glass ceiling for the women.
According to the Mortality and Fertility theory ([3]Roy) (Refer Appendix 7), female birth in a
family is considered at best irrelevant and at worst unwanted by many parents in India.
This has resulted in the twin scenarios of female feticide & infanticide and treatment of
females as secondary members of a family. These two reasons coupled together exacerbate
the gender disparity that is apparent in the labour force. In many ways, labour force
participation in India as well as gender ratios are affected by similar factors ([14] S. B.).
Based on our interviews and surveys conducted, the discouraged worker effect causes
reduced female labour participation mostly in rural areas. An argument is also made that
income effect increase in household income due to increase in per capita GDP too
leads to women leaving the labour force. These biases further manifest themselves in the
job environment. It is seen in many cases that women receive lower wages and even the
basic necessities for example, female restrooms are many a times unavailable at the job
premises.
The female labour force participation rate (FLFPR) has either been constant or fallen over
the years. FLFPR levels went from 29.5% in 2005 to 22.5% in 2012 ([15], n.d.)(As shown in
Appendix 8). Though this lopsided ratio is a blot on promoting women equality, still this has
far greater implications on the Indian economy than just rendering a basic human right
untenable. It is a no brainer that enabling half of the potential workforce of India to contribute
in our success story will help our country in the long run. A decreased participation of women
in the workforce leads to the family income to be lower and a decreased per capita income.
This results in a lower standard of living of those households.
A lot of steps have been taken by the government to address this issue. It has introduced
reservations for women in elected bodies at local levels to ensure that they have a greater
say in the system (Article 243 D of the Indian Constitution). According to Professor Unni,
there have also been specific initiatives like Mahila Samakhya Programme, to improve the
self-confidence of women. Further, it has tried to eliminate the discrimination against women
at the workplace by ensure the strict enforcement of the laws. A mandate is also in progress
for businesses to maintain a threshold level of females in the board of directors ([16]).

CONCLUSIONS
We have seen that India stands on the cusp of opportunity, with a demographic dividend
poised to be taken advantage of. Estimates of additional labour pouring into the Indian
economy every decade is the highest in the world. However, Agricultural sector is not in a
comfortable situation to absorb the increment in workforce without taking a hit on the
average income. There has to be a mass exodus of people from rural to urban areas and
inter-urban migration. This requires structured and concentrated effort from the government
to adopt more inclusive policies, support to small and medium sized urban settlements to
make them lucrative for production and hence employment.
At the same time, care should be taken in order to bridge the skills mismatch in the labour
force. For Indian economy to grow at 8-9 %, the secondary and tertiary sector must grow at
close to 11%, assuming the current agricultural growth rate of 4% to persist ([14], 2010).
This situation necessitates paradigm shift of workforce from agriculture to secondary and
tertiary sectors where the skills required are diverse and inherently different from agricultural
skills.

So the way forward for India is to address the skills gap by improving the quality of education
(not just an increased enrolment at schools) at the same time persisting with the NSDC
schemes to impart skills training based on the requirement across industries so that the
labour force becomes competitive to cater to the national and global demand of 2022 ([14],
2010).
Another aspect of serious concern is the gender disparity in the Indian labour force. The
falling rates of female participation necessitates a basic need to change the thinking in our
society. The government should take the lead in promoting a cultural shift in the way in which
people perceive a working female. Societies all over the world are evolving from a
patriarchal model to a more inclusive structure and India needs to follow in the same
footsteps. Further promoting female entrepreneurship which is at dismally low levels
currently, can provide our country with the much needed growth stimulus ([17]).

REFERENCES
[1] (2012 -13). INDIAN LABOUR STATISTICS. Shimla / Chandigarh: Government of India Ministry of Labour and Employment.
[2] Andrew Mason and Ronald Lee. (September 2006). What Is the Demographic Dividend?
Finance and Development - IMF.
[3] Roy, Debraj. (n.d.). Development Economics.
[4] (n.d.). Data - Total Fertility Rates. Retrieved from The World Bank Database:
http://data.worldbank.org/indicator/SP.DYN.TFRT.IN
[5] Johnson, J. (n.d.). Urban Geography.
[6] Kundu, A. (2011). Trends and processes of Urbanization in India. Human Settlements
Group, IIED.
[7] (n.d.). REPORT OF THE STEERING COMMITTEE ON URBAN DEVELOPMENT FOR
ELEVENTH FIVE YEAR PLAN 2007-12.
[8] K S Sridhar, Venugopal Reddy, Pavan Srinath (2010). Is it Push or Pull? Recent
Evidence from Migration in India.
[9] (n.d.). Urbanization beyond Municipal Boundaries - Nurturing Metropolitan Economies
and Connecting Peri-Urban Areas in India. The World Bank.
[10] (2014). Report on Education, Skill Development and Labour Force. Ministry of Labour
and Employment, Government of India.
[11] Jayan Jose Thomaas (2012). India's Labour Market during the 2000s - Surveying the
Changes. Economics and Political Weekly.
[12]

(n.d.). Value added (% of GDP). Retrieved from WThe


http://data.worldbank.org/indicator/NV.SRV.TETC.ZS/countries

World

Bank:

[13] (n.d.). Employment by Sector:: Industries. Retrieved from data.gov.in


[14] (2010). The Skills Development Landscape in India and implementing quality skills
training. FICCI.
[14] Surjit Bhalla and Ravinder Kaur (n.d.). Paper on Labour Force Participation of Women
in India - Some facts. Some queries.
[15] (n.d.). Female Labour Force Participation. Retrieved from World Bank Database :
http://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS
[16] (n.d.). Companies Act Representation. CII.
[17] Ejaz Ghani, Willian Kerr, Stephen O'Connell (n.d.). What explains big gender disparities
in India?

APPENDIX 1: POPULATION SUMMARY STATISTICS


Data taken from United Nations Department of Economic and Social Affairs/Population Division
World Population Prospects: The 2012 Revision, Volume II: Demographic Profiles

2010
Total population (thousands) ..................................1 205 625
Population density (persons per square km)...........367
Percentage of population under age 15...................30.2
Percentage of population age 15-24........................19.0
Percentage of population age 15-64........................64.8
Percentage of population aged 65+.........................5.1
2005-2010
Annual rate of population change (percentage)......1.4
Total fertility (children per woman)...........................2.66
Under-five mortality (5q0) per 1,000 live births .......64
Life expectancy at birth (years) ...............................64.9

APPENDIX 2: AGE PYRAMID IN INDIA (ESTIMATES AND


PROJECTIONS)
Data taken from United Nations Department of Economic and Social Affairs/Population Division
World Population Prospects: The 2012 Revision, Volume II: Demographic Profiles

APPENDIX 3: URBANIZATION IN INDIA AND CHINA


Sourced from the National Sample Survey Organisation, 2007

%age urban population India


35
30
25
20
15
10
5
0
1951

1961

1971

1981

1991

2001

2007

APPENDIX 4: PERCENTAGE OF USUALLY EMPLOYED


PEOPLE BY TYPE OF EMPLOYMENT IN URBAN AREAS
Sourced from the National Sample Survey Organisation

APPENDIX 5: TRENDS IN SCHOOL EDUCATION IN INDIA


Sourced from the National Sample Survey Organisation

APPENDIX 6: WORKFORCE PROFILE IN INDIA


Sourced from the National Sample Survey Organisation

APPENDIX 7: MORTALITY AND FERTILITY THEORY


Mortality and fertility theory: Debraj Ray, Book: Development Economics
In India one of the major expectations of parents from their children is that the child will look
after them in their old age. Due to cultural factors taking support from a female is considered
an anathema. Hence parents generally wish to get support from sons. This scenario has
been mathematically modeled by Debraj Ray in his book Development Economics. Let p
be the overall probability of a child growing up to take care of its parents. Thus p includes,
infant/child mortality, the progeny being able bodied, possibility of becoming a wage earner,
possibility of earning adequate amounts etc. Let q be the threshold probability (that a
couple finds acceptable), of receiving support from at least one child. So this gives us the
following equation:
1 (1 p)n >

Where n is the total number of children that the couple has.


Now since the couple wishes to receive support from only the sons, n in the above
inequality is replaced by the total number of sons that a couple has, hence the number of
females born become irrelevant to the above equation.

APPENDIX 8: FEMALE LABOUR FORCE PARTICIPATION IN


INDIA
Sourced from the World Bank Database and www.imf.org

APPENDIX 9: FIELD WORK SUMMARY


We interviewed 19 people working in different sectors and having very different backgrounds
to understand the changes from their perspective.
Total people interviewed

19

Total people interviewed outside IIM


B

15

Total people interviewed within IIM B

Interesting samples

Mr.Chakaravarthy, union leader of the slum

We interviewed 19 people working in different sectors and having very different backgrounds
to understand the changes from their perspective.
We visited the slums of Bilekahalli and conducted depth interviews with questions focused
on understanding the implications of Age, urbanization, gender and education on the labour
force. We chose our samples very carefully to encompass a wide variety of jobs. Apart from
that, we were also very curious to understand the labour force within IIMB and interviewed a
few people who we come across daily to get their perspective.
INTERVIEW SAMPLE I
We began our field research by interviewing Mr. Narayanappa and Mr. Palani at the slums of
Bilekahalli. Mr. Narayanappa owns a Pottery shop, while Mr. Palani is a tailor. We then
interviewed Mr. Sabeer, a painter who is currently unemployed. We continued our fieldwork
by interviewing Mrs. Raji, a mobile food vendor. Mrs.Raji was very apprehensive to get her
interview videotaped. We then interviewed 9 other people from varied backgrounds.
Everyone were apprehensive and not ready to get interviewed. They said that they had a
union and needed their prior approval to give us a detailed interview.
We then went to the union office of the slum and spoke to the Vice president of the union,
Mr.Chakaravarthy. He was the official caretaker/representative of the slum. The slum had
nearly 2000 people from diverse backgrounds.
INTERVIEW SAMPLE II
We also interviewed Mr. Anil Kumar, a Night watchman at the Airtel showroom outside IIMB.
To get a perspective of the labour force within IIM B, we interviewed Mr.Anwar (from Ricoh
Printers), Mr. Sashi Kumar (from ABP), Mr. Vijayabaskar (Main gate security) and Mr. Manju
(Dry cleaner).

The Full details of the various participants from Interview Samples I & II are given below:

S.No

Interviewee
Name

Age

Education

Gender

Occupation

Income

Mr.Chakaravarthy

42
years

Class XII

Male

Independent
Vegetable
seller

Rs.30,000

Mr.Anil Kumar

30
years

Class XII

Male

Night
Rs.8,000
watchman at
Airtel
Showroom

Mr.Palani

42
years

Class V

Male

Tailor

Mr.Narayanappa

55
years

Class II

Male

Pottery and Rs.15,000


Crafts
merchant

Mr.Sabeer

32
years

No
Primary/Secondar
y Education

Male

Painter
(Currently
unemployed)

Mrs.Raji

48
years

No
Primary/Secondar
y Education

Female

Mobile Food Rs.18,000


vendor
(Female
entrepreneur
)

Mr.Ramesh

39
years

No
Primary/Secondar
y Education

Male

Fruit Seller

Rs.
13,000

Mr.Kumar

45
years

No
Primary/Secondar
y Education

Male

Auto driver

Rs.
15,000

Mrs. Rekha

29
years

No
Primary/Secondar
y Education

Female

Sweeper

Rs. 6000

10

Mr.Muthu

32
years

Class II

Male

Sewage
cleaner

Rs. 7500

Rs.10,000

No
income as
of now

11

Mrs.Banu

28
years

Class IV

Female

Servant maid

Rs. 7500

12

Mrs.Kanaga

43
years

Class XII

Female

House wife

No
Income

13

Mr.Anbu

30
years

No
Primary/Secondar
y Education

Male

Cleaner
; No
Currently
income as
unemployed
of now

14

Mrs.Uma

24
years

No
Primary/Secondar
y Education

Female

Servant maid

Rs. 6500

15

Mrs.Akila

36
years

No
Primary/Secondar
y Education

Female

Flower
vendor

Rs. 9500

16

Mr.Manju

43
years

Class I

Male

Dry Cleaner

Rs. 9000

17

Mr.Anwar

38
years

Class XI

Male

Operator,
Rs. 9000
Ricoh Print
Shop

18

Mr. Vijayabaskar

28
years

B.Sc (Physics)

Male

IIM B Main Rs.8500


gate Security

19

Mr. Sashi kumar

27
years

B.A (History)

Male

Food
and Rs.9500
Beverages,
ABP Foods

Few Snapshots from the Field Work are presented below:

Figure 1: Slums of
Bilekahalli

Figure 2: Mr.Palani (Tailor)


and Mr.Narayanappa
(Pottery and Handicrafts
merchant)

Figure 3 : Mr. Sabeer


(Painter; Currently
unemployed)

Figure 4: Mrs. Raji ; Mobile


food vendor

Figure 5: The union office


of the slum

Figure 6 :
Mr.Chakaravarthy, the Vice
President of the Slum

Figure 7 : Mr.Anwar,
Operator at Ricoh Printers

Figure 8 : Mr.Vijayabaskar,
IIM B Maingate Security

Figure 9 : Mr.Manju, Dry


Cleaner

APPENDIX 10: SUMMARY DEMOGRAPHIC


FROM SLUMS IN BILLEKAHALLI

STATISTICS

The detailed statistics pertaining to the slum are as follows,


An Important Note The following figures are approximations/ extrapolations based on the
data collected from Mr.Chakaravarthy.
Total Number of People in the Slum

2300

Total Number of Households

450

Total Number of Men in the Slum

490

Total Number of Women in the Slum

455

Total Number of Male Children in the


Slum

715

Total Number of Female Children in the


Slum

640

Total Number of Women Entrepreneurs

30-40

Child Literacy rate

Not
Available
with
Mr.Chakaravarth
y

Adult Literacy rate

Not
Available
with
Mr.Chakaravart
hy

APPENDIX 11: PHONE CALL TRANSCRIPT WITH PROF.


UNNI, DIRECTOR OF IRMA
GENDER

India has a very poor female to male labour participation ratio of 0.36. Female labour
participation has dropped from 29.5% in 2005 to 22.5% in 2012.
1. What are the major issues due to which women participation in the labour
force is low or declining?
The low female labour participation rates are due to societal and cultural
reasons as you know. As for why it's declining, well, there are two schools of
thought on this matter. One says it's an income effect. In the last so many
years, India has been having this terrific growth as a result of which per
capita incomes are rising and as a result of this, women withdraw from the
workforce. Income effect also includes social norms and beliefs such as
'women should stay at home'. So when incomes rise, women do not have to
fend for the family. The other school of thought is that it's a discouraged
worker effect. If you take the participation rate of women, you'll notice that it
fluctuates; on an average, it could be declining. If you map this with growth of
GDP, you'll see that it moves along with that. When there is growth in the
economy, more women participate. When the economy is receding, women
withdraw from the workforce. You'll notice that women participation in rural
areas is higher than that in urban areas. So when agriculture experiences a
downtrend, which is currently the case, participation rate seems to decline.
One may then argue that now that there is a boom in the economy, why the
rate is going down then. The answer is, well, urban participation rate for
women is actually going up but the rural rate is what fluctuates.
2. What specific initiatives has the Govt. undertaken to ensure gender inclusivity
in rural India?
One specific initiative that I can think of is Mahila Samakhya Programme,
which wasn't a scheme as such. It was started for whatever reason. However,
it has been continued in various forms by various governments with support
from NGOs, sabhas. It has definitely had some impact, not in terms of
empowering them to start their own enterprise or something like that, but

definitely in terms of inclusivity, encouraging them to venture out in groups


and things like that. Some governments have tried to help create microenterprises for women, sometimes it has worked, sometimes it has not.
3. What do you think is the role of private corporations, in urban and rural India,
to improve this situation? Has enough been done by corporations in this
regard?
In the older version of corporate social responsibility, some private
enterprises did do quite a lot of philanthropic work on this front. However, the
new version of CSR sort of mandates companies to spend towards Swachch
Bharat Abhiyan. This will definitely impact what was being done earlier
towards CSR in other areas.
4. What is the role of society in improving the situation? Is our society still
regressive in thinking about women emancipation?
There have been strands of regressiveness in the society. Things like riots take
us backwards; then there's Khap panchayats. But these weren't so prominent
(twenty years ago) that we could hear about them. I think the media has
become very proactive. Nevertheless, there has been regressiveness. I attribute
this to two things besides the (patriarchal) mentality itself - firstly, there are
regions in the country where people don't have girl children - girl children are
not allowed. The other thing is the tremendous amount of male migration due
to rural poverty. The kind of development that we've had comes at a cost.
URBANIZATION

In India, people migrate from being in agricultural labour to being in industrial labour.
Initially, when industrialisation started in India, agricultural sector had surplus labour. So
migration of labour didn't pose any threat to marginal product/efficiency. However,
today, we see substantial increase in urbanisation.
1. Do you feel that this has started to impact and lead to decline in food
production, and hence increase in average income received by farmers?
Do you feel this is threatening the increase of industrial sector?
No. Food production has got to do with input prices for food, cropping pattern
moving towards cash crops. It has its own internal logic. Urbanization has
nothing to do with this. In fact it is the other way round. Since food production
(and agriculture as a whole too) has declined, urbanization has increased.

Urbanisation in India is not an urban pull migration, where agricultural labourers seeing
good opportunities in urban areas migrate from rural areas. It is movement because of
rural push.
1. What can the Government do to keep urbanization rate at a sustainable level?
MNREGA has reduced urbanization in a big way. As for sustainability, it
depends on the kind of urbanization. If an entire village moves to half a
kilometre of land in a city, it's not going to be sustainable. With movement of
people, the area under urbanization has also actually increased. So this is a
sustainable trend.

EDUCATION

Are the schemes of the Government like the Sarva Shiksha Abhiyan empowering
the labor force? What is your opinion about the effectiveness of such government
driven programs and initiatives?
In terms of enrolment, Sarva Shiksha Abhiyan is effective. However, if you ask me
whether it has actually had some impact, it is still unclear.

What are a few aspects you would like to change with respect to Indian education
system to cater to a strong rural labor force?
First and foremost, put (relatively) qualified teachers in schools and somehow
incentivise them in some fashion that they regularly go to school to teach. In rural
areas, parents don't send their children to schools because they don't trust that
school education would make them better off since there aren't many 'good' teachers.
If there are good teachers, the situation will definitely improve. If the supply side of
education improves, the demand for education will automatically increase.