Weekly Update: Corporate-Civil Service Divide; Captain Deserts, Cong At Sea

Grit and determination are what helped Shubham Kumar, this year’s topper in the Union Public Service Commission (UPSC) examination, realise his ambitions. It was his third attempt this year. Last year, when Kumar took the exam, he was selected but his rank was 268. Kumar wanted to realise his ambition to do much better. So he took the exam again. This time, he topped.

Kumar, 24, comes from Kumhari village in the Kadwa block of Katihar district in Bihar. It is in a zone that is chronically ravaged by floods. The son of a rural bank’s branch manager, Kumar, a graduate of IIT-Mumbai, has always been determined about pursuing success single-mindedly. And, from a very young age, he wanted to become an IAS officer, a dream that has now come true.

The examinations conducted by the UPSC are for aspiring candidates who want to join the elite bureaucratic cadres in India–including the Indian Administrative Service (IAS), the Indian Foreign Service (IFS) and the Indian Police Service (IPS), among others. Every year, as many as a million candidates register for the examination and of them,about half actually complete the exams. But the number of positions that they compete for is less than 1,000. So the percentage of candidates selected from all of those who take the tests is 0.2%. There are very few competitive exams in the world that are as difficult to crack as the UPSC examination.

Kumar is emblematic of the drive that UPSC toppers demonstrate. Last year’s topper, Pradeep Singh, son of a village sarpanch from Tewari village in Haryana’s Sonipat district, made it to the top rank in his second attempt. Kumar and Singh are also examples of how, increasingly, aiming high in the UPSC exams has become more an objective of, often less privileged, rural Indian youth rather than their more well-heeled urban counterparts.

Although accurate statistics are not easy to come by, it is estimated that the majority of the candidates that get selected for UPSC’s elite cadres each year come from the two states of Uttar Pradesh and Bihar. Of course, these two states are among India’s most populous ones–UP has over 200 million people, of which 77% live in villages; and Bihar has a population of 104 million, of which 88% live in villages. In UP, there is a tiny village named Madhopatti in the Sirkoni block of Jaunpur district, where just 75 households live and, it is believed, that each of these households has at least one member of the family in one of the elite UPSC services. It is even known as the Officer’s Village of India.

Why do rural youths seem to aspire more to join the UPSC cadres more than urban youths do? Is it because the cachet attached to those services appears to be valued more highly in India’s villages and small towns than in its cities? Is it a truism that India’s urban youths eye careers in the corporate world, and aspire more for an MBA tag than that of an IAS, IFS, or IAS? Questions such as those require sociological probes.

Is there a divide between India’s youth? Are India’s urban youngsters more westernised, corporatised and lured by wealth and material acquisitions? An MBA from even a low-tier business school could expect a starting salary of Rs 1lakh plus a month, which is roughly double of what a freshly-minted IAS officer makes. But a job in the corporate sector has none of the responsibility, commitment and dedication to nation building or administration that comes with the job of being a civil servant. Half of India’s 1.36 billion people are below the age of 25. With such a huge proportion of youth among its population, questions such as the ones just posited require to be addressed.

Captain Ejects

One month is a long time in politics. The latest example of this truism is the Punjab unit of the Grand Old Party. At the beginning of September, it seemed Captain Amarinder Singh was firmly in the saddle, despite a bitter faceoff with newly-appointed Pradesh Congress head Navjot Singh Sidhu. The party seemed to be in pole position for the next Assembly election due early next year. Captain had made the right noises amid raging protests against central farm laws and this was not lost on the state electorate. The second week of September saw Sidhu garnering support of state legislators who were miffed with the Chief Minister, and there were quite a few of them.

Interestingly, Captain had more support from Congress leaders active in Delhi than in Punjab. However, Gandhis seemed tilted in favour of Navjot Sidhu who paraded about three dozen MLAs to buttress his claims in public view. Before the end of third week, Amarinder Singh put in a one-line resignation to the state governor. The wounded tiger minced no words in raising questions on Sidhu leadership. The acrimony did its damage to the Congress party.

The Congress went into a huddle to pick up the next chief minister, months ahead of elections. When they picked up Charanjit Singh Channi, a Dalit Sikh, for a state which has about 30% Dalit voters, some viewed it as a masterstroke to resurrect the turbulent jet. Barely had it gained balance, just a week after the Captain had deserted the ship, when the mercurial Sidhu rocked the boat once again. Citing some ‘unexplained’ principles, Sidhu quit as the PCC chief, making himself as the shortest PCC chief in the party’s recent history. Captain was grinning from ear to ear, with a told-you-so look on his face. His exit from the party, with a vow to defeat Sidhu in next election, brought the unwashed linen in public.

Central leaders like Manish Tiwari and Kapil Sibal, dubbed as members of G-23 band of party ‘rebels’, found an apt opportunity to question the party leadership in handling the matter. From the numero uno status in the beginning of month, the state Congress unit had egg on its face just before the flip of the calendar leaf. The electorate must also be thinking: if a party cannot manage its domestic affairs, how will it rule a border state effectively?

Union Budget 2020: A Missed Opportunity To Tackle Unemployment

Continued lack of employment opportunities for India’s youth has already led to disaffection among them and that is evident partly from the manner in which student unrest (albeit triggered by the Modi regime’s controversial Citizenship Amendment Act) has spread. Half of India’s 1.3 billion people are below the age of 25. This year, it is expected that the average age of an Indian will be 29 years (for China, it will be 37). As education levels rise for young Indians so do their aspiration for good jobs and better standard of living. If employment rates don’t rise their hopes will not be met.

That could be a ticking time bomb. Many believe the countdown to an explosion has already begun. Educated urban youth in India have readily joined the movement against the Citizenship Act, which is being seen as discriminating against the largest minority community in India, Muslims, who constitute more than 14% of Indians. The youth’s opposition to the Act must be seen holistically. It is a symptom of the greater disaffection that young Indians feel. Even as the number of those who graduate from schools and colleges increases, their prospects of landing desirable jobs have diminished. Before long this could be a problem instead of the demographic dividend that a youthful India could benefit from.

In that context, Finance Minister Nirmala Sitharaman’s Budget has missed a big opportunity. The annual Budget in India has always been a mega economic event in the country. Finance ministers, regardless of which political party they represent, use the exercise, which ought to be a routine balancing of the government’s expenditure and revenue streams, not only as an opportunity to announce the government’s economic policies but also as a podium to offer sops and incentives to different sections of the population—an exercise that is seen as a means to garner electoral support from voters.

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As a consequence, the media hype gets heightened and the Budget’s announcement in Parliament becomes a red-letter day for newspapers, TV channels and other publications. In recent years, as the Indian economy has become less regulated; tax structures have become simplified; and government controls on different economic sectors have loosened, the Budget’s importance has declined. It is no longer an event that offers governments a chance for grandstanding or making big announcements for changing policies or ushering in new economic strategies.

The Indian economy has been ailing in recent months. It is probably at the worst low point that has been witnessed in over a decade. Last year, GDP growth rate slumped to 4.8% from 2018’s 6.8%; prices across many categories of products, including food, rose; and sales of consumer products stagnated. Industries, including automobiles, white goods, and other categories held off investment plans as inventories of unsold products built up. The youth—65% of Indians are under 35—were impacted adversely too as estimates of the unemployment rate rose to nearly 8% at the end of 2019.

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In her Budget, Sitharaman announced a series of incentives—personal income tax cuts; bank deposit insurance; and some infrastructure investments—but none of them were designed specifically to increase the potential for generating more employment. Most of India’s youth are based in rural parts of the country. Nearly 66% of Indians live in villages. And while 44% of Indians are employed in agriculture, the sector accounts for a shade over 15% of GDP. Labour productivity in the sector is low and many Indians are what economists call “disguised unemployed”—that is they work on farms but don’t add anything in terms of incremental output.

In fact, it has been argued that if rural youth, ostensibly working on overcrowded farms, get the opportunity to move to other sectors and find work, the productivity of Indian farms could actually go up. But there lies the rub. Where are those alternative jobs? India’s Prime Minister, Mr Narendra Modi, and some of his ministerial colleagues have often stated that India’s youth have opportunities galore in the informal sector—to be small entrepreneurs who are self-employed. Those are facetious statements, designed more to divert attention from the real problem of unemployment than to alleviate it. Otherwise, how does one explain the phenomenon of post graduates and graduates applying in thousands for menial posts such as that of a government department’s peon or a municipality’s sweeper?

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Yet, there may be a kernel of an idea for employment generation in those statements. If the finance minister, in her Budget, had devised incentives for unemployed youth or other budding entrepreneurs to set up small businesses—through liberal grants of seed capital; subsidised land for building small manufacturing or trading establishments; and facilitation for marketing and distribution of products and services—that could lead to heightened entrepreneurial activities. Such incentives, if properly targeted in the rural and semi-urban parts of the country where agriculture or farm-related enterprises could move the rural sector up the value curve, it could see the blooming of millions of tiny, small, and even medium enterprises. In turn each of these enterprises could generate employment—not on a large industrial scale—but in modest numbers. If a tiny enterprise hires even four or five workers, 10,000 of them could hire 50,000 young people. The multiplier effect of such an initiative is easy to conceive.

To be sure, Mr Modi’s government, in its first term (2014-19) flagged off many well-publicised schemes: Skill India, which was aimed at re-skilling young Indians; and Startup India, aimed at handholding and helping entrepreneurs to set up enterprises. None of these has attained the levels of success that were envisaged or promised. If such programmes are conflated into comprehensive opportunities for fresh Indian graduates from schools and colleges and offered to them as they finish their education, particularly in rural and semi-urban India but also in urban areas, they could not only be opportunities for unconventional employment but also serve to build small enterprises by young entrepreneurs that could further employ other young people.

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Some of this is happening informally. But the need of the hour is for India’s government to formalise such activity and make it a widespread movement. The definition of a budget is to balance spending and earning; but in India, budget-making could also be the opportunity for governments to think out of the box and create something that could address what is perhaps the country’s biggest issue—a burgeoning population of young people but a diminishing prospect of finding employment for them. India’s youthful demography is unique. Nowhere in the world are there as many young people as there are in India. The strategy to find opportunities for them has to be equally unique. The Budget for this year offered a platform that could have been used to do just that. Sadly, that opportunity was missed.