MBA Handbook-2

The Number of Households using Banking Services is

increasing rapidly in rural India

The number of new rural branches has

nearly doubled in the last 4 years

More than 3/4th of the ATM’s in Rural India belongs to

Public Sector Banks

Mobile-A n emerging Technology in present era

• Upto 30% of ecommerce transactions worldwide are now happening on Mobile Devices

• Asian Shoppers conduct almost half their online purchases on mobile devices ,consumers from the US & other western

markets use a mobile device in roughly “One out of 4 Online Transactions”

Asians re the Most Avid Mobile

Shoppers

The above data has been released by The International Telecommunication Union(ITU)

In 2014,nearly 75%(2.1 Billion)of all internet users in the world(2.8 Billion) live in

top 20 countries

Its time for ‘Disruptive Forces to Display’

City populations are growing by Million by every year

65 2.5 Billion people

will live in Asian cities by 2025.Thats half of all urbaniities in the world

Cities in emerging Markets will account

for nearly half of GlobalGDP Growth by 2025

440By 2025

emerging economies will

grow 75% faster than developed nations Emerging

economies are taking a larger share

of the world economy.

1/3 today & ½ by 2025

Million people exited Poverty

In the last 20 Years

620

There will be 150% increase in Annual

Consumption in emerging markets from 2020 to 2030

DELHI

MUMBAI

Indian cities that will see the biggest increase in Income & Consumer

spending by 2030

1 Trillion

Objects expected to connect to the internet by 2025

Technological Breakthroughs are Speeding-Up

1876First

Phone Call

1991First

Website

2007First I-Phone

• Global Flows contribute

$250-450 Billion to yearly Global GDP Growth

• Highly connected countries

can see 40% more GDP Growth than the least

connected

Global Flows-the volume of trade,

finance,people& data are increasing

Tourism added

$ 2 Trillion to GDP &

provided salaries to 100 Million people in 2013

Swachh Bharat Mission-An

India Initiative

Swachh Bharat Mission was launched around eight months back. The main purpose of the initiative is to

end open defecation by 2019 in a country where Half of the households don’t have a toilet at home

Allocations to sanitation have reduced in the last one year

The number of people defecating

in the open is certainly higher than the fraction of households that lack toilet.

People who own a toilet in rural

India don’t always use it

What went wrong in ‘Swachh Bharat Mission’

oReduction in Budget allocated to SanitationInitially the government announced that it would be building a toilet for every rural household that did not have one. The allocations for the construction of toilets were expected to rise almost 10 fold. But this did not happen because of fiscal considerations.

oBudget AllocationIn 2015-16,allocation for sanitation was reduced to Rs.3500 Crores. This is lower than the absolute levels of sanitation budgets given by the previous governments but allocation for rural toilet pogrammes had received a boost when Jairam Ramesh became the minister for drinking water & sanitation

oStates burden for more spends on Sanitation ProjectsStates now have to spend double the money per toilet than they did under its predecessor Nirmal Bharat Abhiyan

Uttar Pradesh(India’s most populous state) & the one with the highest number of open defecators, spending on toilets has not improved(refer previous slide).Every eighth person in the

world who defecates in the open lives in UP

The improvement in spending allocated funds was driven by only a few states such as Gujarat, Karnataka, Rajasthan & Maharashtra that spent most of the available funds. Toilet construction spending in most large states with a large no of

open defecators such as UP, Bihar, Andhra Pradesh & Madhya Pradesh was much below target

oGovt’s strategy of Information, Education & Communication(IEC)The research shows that the govt’s concern with construction of toilets would not change much unless ‘sanitation behavior changes’. On 2nd October 2014,a National Sanitation Awareness Months was also launched. This initial enthusiasm seems to have waned & promoting behavior change has taken a back seat. The new sanitation policy now caps the allocation to Information, Education & Communication-the expenditure head for behavior change campaign activities. The budget allocated for this activity is around 8% of total allocation to rural sanitation .These funds have been reduced almost by half

This graph shows that the highest IEC expenditure was done last year under the ‘UPA Govt’ & ‘not by

the present one’

• IEC activities in UP, where they are needed th most have been even dismal. The highest the state ever spent

on IEC was in April 2011.In the last fiscal year there were many months when the state spent nothing

• In the above graph, spending on behavior change reached th required 12-13% of the total program

expenditure just thrice. After the new ‘Swachh Bharath Mission’ guidelines reduced spending to 8% in

December, spending on behavior change ha further declined. This means that spending on behavior change

per open defecator was very little

In 2014,the State & Central Governments spent a combines Rs.157

Crores on behavior change According to Census 2011,69.3% of rural households did not own a toilet.

Toilet ownership in India has been improving very slowly & is lower than

the population growth rate. A household size of 4.98 persons per

household(Census 2011) means atleast 57.7 Crore people defecate in the open. This implies that the government spent just Rs.2.72/- per person the whole of last fiscal year to convince citizens to use a toilet instead of defecating in the

open--UP Spent-Rs.1.39-Rajasthan-Rs.1.28

-Sikkim/Kerala-spent more per person open defecator

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd