Daily we are watching news of after effects of the Demonetization on various TV channels.
The Textile sector has lot of informal activities. Few rich weavers keep weaving machines and hire workers who operate these machines that produce textile. That textile is then sold to dealers in the ladder or the chain of textile business. The Textile ministry has recently asked all textile units to register themselves. I read this news in The Hindu. This registration will give data about the types of textile units, the quantum of textile production and the type of textile produced. The Khadi units are not included in this registration. I don’t know why? Are they (khadi units) registered under the KVIC acts. India has beautiful textile heritage. That has been targeted as potential for tourism activity also.
In one instance when I asked the khadi village office in my city about the number of khadi units running in this city, they said we don’t have such data, KVIC acts is not implemented. And the units are registered under msme!!.
I was surprised then how come we can estimate the number of units engaged in Khadi sector in my city? More surprising and shocking thing was that the same officer of KVIC office sent some persons to my office to get the contribution of Khadi in GSDP, which was required for some parliamentary committee on visit? I thought to slap that person. At one hand he is himself saying he don’t have figures as to how many KVIC units functioning in the city and on other hand he is asking me to give the contribution of Khadi units in GDP? What work he was doing all these years? I got some reports on number of people got financial grant under some scheme and units got training by the KVIC office.
On TV they have shown how people are struggling for money. I had earlier written a blog about the que system que a common phenomena. Few middle men and those who have textile units and run their units by hiring people are ought to register their units. Once registered, then the hired workers will also be registered either with labour commissioner office or some other scheme. While discussing with people from Industry department they told that once a msme is registered and if it is manufacturing unit then they have to register with Labour commissioner under factory’s act/or shop & commercial act as the case may be? if any unit is engaged in food business then it has to get itself registered with FSSAI? I thought how come a unit has to register simultaneously in number of registering authorities? These units once registered, will then have to stick to the MINIMUM wages and will have to pay as per these wages fixed by the labour department. If these textile units pay wages online then all such transactions will be recorded and may be subjected to regulations/monitoring procedures. These can be checked whether they have adhered to the minimum wages as fixed by Govt. Thus it will benefit the weavers/workers. Once these hired weavers are registered with labour dept they may be eligible to some benefit under some insurance/compensation schemes as well.
The debate is ON, everyone be it a shop owner, college student, Auto rickshaw or cab driver all are talking about ONLINE transaction, paytm, mobile apps for money transfer. There is lot of demand for information on how to use online transaction. Those opposing the move of cashless economy are saying why directly moving/jumping to cashless, it should be kept as an option only. But they are not getting the point that demonetisation is not for cashless but for less cash type of things.
Dangers of security in cyber or online or any e-mode are very well there.But moving towards cashless mode cannot be just ignored. However it also true that at this juncture our society is not ready for cashless scenario. Given the scene of low literacy, lack of proper connectivity, even many villages lack the basic amenities. in same breath we cannot underestimate the power of common people and we cannot keep that society cut off from several advancement made in IT tools. Thus let them try. Let Society try out cashless transaction system. however complain is that why not the current system can go ahead side by side with cashless system. Well I think it is time (30 December 2016) will tell how far we can achieve this goal of cashless society. few years back i did not own any mobile phone. But due to peer & family pressure i had to buy one phone. Earlier some twenty years back people didnt had land line phone. I had to go to the STD PCO or to someones’ house to call my parents back home. But now people do not want to use land line, other than for use of BroadBand? And everyone has a mobile phone just stuck to their ears, even while they are driving car, two wheeler they are engaged in talking on their mobile phone, which is often stuck near to their ears under helmet? as if their life cannot go ahead without mobile phone. I could not buy a phone whereas labour working at construction site near my house all had a mobile phone mostly for entertainment. They heard songs in Bengali with full volume. Later on from the pressure of my son i had to buy one android phone. Operating that android machine is known to my 15 year old son and i am not aware of many features in Samsung Galaxy s5? Thus society has graduated from Telgram/telgraph to mobile phone. telegram has died a natural death. Post card has become thing of past. and even INLAND letter has gone into history. now they are communicating with What’s app, FB, Instagram
The NASVI National Association of Street Vendors of India, which has more than 30 lakh street vendors has tied up with MobiKwik to make transactions easy for street vendors. As reported in The Hindu the Arbind singh, founder NASVI. There is already news of jump in the transactions using paytm.
As far as I understand Online transaction will bring lot of economic activities ONLINE at one platform, at least these activities will generate some or the other kind of DATA. That’s what we need in India. As of now we don’t have figures of informal economy. Other than the data of Economic Census not much data is available. There are so many acts, rules and regulations. But how many of such acts generate administrative data? Do we know how many hotels are functioning in India and how many workers are engaged in these hotels. NSSO or any agency which is engaged in data collection only takes rescue route of Sample survey. From these sample survey lot of estimations are generated. Till now almost 70 years we have been estimating the data based on sample surveys. Why not we can have exact data of number of hotels catering to the tourists and are the pillars of tourism industry. Once we have all hotels registered and day to day occupancy or traffic of tourists get registered ONLINE, we can tell in real time the quantum of tourism activities.
Demonetisation in long term will be going to stress on such things also, and that will result in actualisation of GDP data?
On coastal line of India, if transactions are made through any ONLINE modes, all the fish catch is registered somewhere, and number of fishermen sailed in sea is also recorded, immediately we can have size of Fishing trade on coast line.
All the buses plying on roads, if they have GPS or any recording system, and if passenger traffic is also recorded, it not an impossible task, as I have seen machine ticketing is being done in buses of UP Roadways starting from Lucknow to Kanpur. Then we can immediately tell the quantum of revenue generated along with the number of passengers. Together with this we can then have number of persons working in BUS or persons engaged in transport sector. But will private transport operators part with their secret data? FICCI or CCI can take lead.