Posts in category: Case Study

About the author: Muskan Jhaveri is a dedicated and driven student from Mumbai, currently studying in the 11th grade at BD Somani International School. Passionate about history and global politics, she aspires to pursue studies in these fields in the future. An advocate for women’s rights, Muskan recently launched Flow Forward, a foundation dedicated to educating women about menstrual health and empowerment, reflecting her commitment to making a meaningful impact in her community.

Abstract

This research paper aims to analyse and understand the socio-economic determinants that are currently influencing elevated dropout rates among female students in Indian secondary education. Moreover, a particular focus on Maharashtra as a case study will help gain specific insights on the barriers that disproportionately affect female students. The study examines the critical economic constraints, like poverty and low income levels, that compel families to prioritise short-term financial savings rather than long-term educational aspirations. Furthermore, by using the current policy framework, the paper will recommend targeted ways to address these factors and promote gender equality and economic development.

Introduction: Overview of the Indian Education System

Secondary education in India has witnessed significant growth and transformation, structured across multiple levels: primary, secondary, and higher education. The National Education Policy (NEP) 2020 has introduced a new educational framework, adopting the 5+3+3+4 model, which delineates educational stages from foundational years through preparatory and middle stages, culminating in secondary education (Drishti IAS, 2023). This model spans ages 3 to 18 and aims to create a more organised learning experience. The Indian education system operates as a concurrent subject, with both central and state governments involved in policy-making and implementation. The National Council of Educational Research and Training (NCERT) plays a crucial role in developing educational frameworks and curricula (BYJU’S, 2022). Currently, India has over 1.4 million schools and approximately 414 million students, with the literacy rate improving significantly to 77.7% in 2022, up from 18% in 1947 (India.gov.in, 2022).

However, implementation remains inconsistent; many secondary schools lack essential facilities such as libraries and laboratories. Nationally, 89.3% of schools lack electricity, and 44.6% lack computer facilities, severely impacting the quality of education due to insufficient resources (NCF 2023). Furthermore, the curriculum often does not align with modern job market requirements, emphasising theoretical knowledge over practical skills (IITMS, 2023). Inadequate government funding at only 3.1% of GDP exacerbates these issues, highlighting the need for substantial investment to improve educational outcomes across the country. The issue of high dropout rates in India, particularly among female students, is largely rooted in access and affordability, which hinder economic growth. Economic disparities and various socio-economic factors limit access to basic education for marginalised communities. Many families prioritise boys’ education over girls’ due to financial constraints, directly influencing high dropout rates and enrolment in higher education (Times of India, 2023). The Economic Survey of Maharashtra indicated that dropout rates have increased significantly, doubling in secondary sections compared to pre-pandemic levels, with the secondary level dropout rate recorded at 10.7% according to UDISE+ data (Economic Survey of Maharashtra, 2023). In contrast, more rural states like Bihar and Odisha report rates as high as 27.29% (Times of India, 2023). A major concern is that many girls are forced into child marriage or labour to contribute to family income, as education is often not viewed as beneficial for them (UNICEF, 2022).

Consequently, girls who drop out face limited job prospects, lower earning potential, and reduced social mobility. Addressing dropout rates among girls is not merely an educational issue; it is fundamentally tied to economic development and the broader societal implications of gender inequality.

India is one of the most economically diverse countries, with significant fluctuations in wealth across different regions. While the percentage of Indians living below the poverty line has decreased to less than 5%, issues related to financial instability in rural areas persist. According to a report by CNN, approximately 60% of people in India continue to live on less than $3.10 a day, which underscores the financial challenges faced by many families (CNN, 2022). For low-income households, the costs associated with education—such as transportation, uniforms, textbooks, stationery, and examination fees—can become substantial financial burdens. The Sakal India Foundation highlights that these rising costs often lead families to prioritise household survival over education (Sakal India Foundation, 2023). Despite government efforts to provide free public schooling through initiatives like the Sarva Shiksha Abhiyan, which aims to make education free and compulsory as a fundamental right, indirect expenses frequently force parents to withdraw their daughters from school (Times of India, 2023). Furthermore, the National Family Health Survey indicates that approximately 27% of women aged 20-24 were married before the age of 18, reflecting a belief among conservative families that this is a viable way for girls to contribute to household incomes (NFHS, 2021).

The ‘opportunity cost’ mindset

‘Opportunity costs’ refer to the loss of potential gain from other alternatives when one alternative is chosen. In the context of education, the opportunity cost of sending girls to school instead of having them work or contribute to household chores can be substantial. In many traditional cultures, daughters are expected to assist with raising younger siblings, cooking, cleaning, or performing other tasks essential for the family’s daily functioning (Sakal India Foundation, 2023). When these girls attend school, families lose this valuable labour, which is often viewed as a significant opportunity. This perceived high cost discourages investment in girls’ education, as the immediate economic support they provide is considered more critical than the long-term benefits of their education. Furthermore, many families believe that investing in girls’ education does not yield a high return, particularly in communities where women’s roles are largely confined to domestic duties or where early marriage is prevalent. Consequently, families often prioritise education for boys, who are seen as more likely to secure higher-paying jobs and provide financial support to their parents in the future (Drishti IAS, 2023).

Child marriage and its implications

Another major socio-economic factor contributing to high dropout rates is the widespread belief in rural areas that child marriage alleviates the burdens placed on families. For low-income families, early marriage is sometimes seen as a solution to reduce the expected dowry and lessen the financial burden of supporting a daughter. This practice perpetuates a cycle that limits educational opportunities while reinforcing gender inequalities. Once a girl is married, gaining an education becomes challenging due to increased domestic responsibilities and expectations to prioritise her role as a wife and eventually a mother. Studies indicate that girls who marry early are six times more likely to drop out of secondary school than their peers who marry later or not at all. The National Family Health Survey (NFHS-4) data revealed that the dropout rate for girls aged 15-19 was significantly higher among those who were married, at about 66%, compared to those who were unmarried (NFHS, 2019). Moreover, child marriage rates are particularly high in certain states, with West Bengal (41%), Bihar (40%), and Jharkhand (37.9%) reporting some of the highest proportions of women married before age 18. These regions also exhibit higher dropout rates among female students at the secondary education level, demonstrating a clear correlation between early marriage and education discontinuation (Economic Impact of Child Marriage, 2020).

The Case of Maharashtra State

In Maharashtra, income levels significantly impact educational access, particularly for female students, leading to high dropout rates. Despite government initiatives like the Majhi Ladki Bahin scheme, which aims to provide financial support for girls from economically weaker sections, many families still struggle with the costs associated with education (The Hindu, 2023). The Economic Survey of Maharashtra 2023-24 revealed that dropout rates increased fivefold in primary education and over twofold in secondary education, exacerbated by the financial strains many families faced during and after the COVID-19 pandemic (Times of India, 2023). Additionally, the lack of adequate school infrastructure in Maharashtra, such as separate toilets for girls, further hinders female students’ ability to continue their education (Vidhi Legal Policy, 2023). These socio-economic challenges underscore the need for targeted interventions that not only alleviate financial burdens but also improve educational facilities to ensure equitable access to education for all children in Maharashtra.

The Indian government has implemented various policies to address the issue of high dropout rates among girls, aiming to improve access, reduce gender disparities, and eliminate economic constraints placed on education. The National Education Policy (NEP) 2020 is a significant initiative that focuses on extending financial support, improving infrastructure, and integrating vocational training, making education more accessible and relevant for girls (PIB, 2020).

Additionally, the Beti Bachao, Beti Padhao program, launched in 2015, addresses the declining child sex ratio and promotes girls’ education through awareness campaigns and incentive-based programs that encourage families to prioritise girls’ education over early marriage. The Kasturba Gandhi Balika Vidyalaya (KGBV) offers free education, boarding, and lodging to girls from marginalised communities, addressing barriers such as safety and economic constraints that often hinder their educational pursuits. Furthermore, the National Scheme of Incentives to Girls for Secondary Education (NSIGSE) provides cash incentives to girls who complete upper primary school and enroll in secondary education, motivating families to support girls’ educational journeys (BYJU’S, 2020).

However, the impact of these policies has often been limited by inconsistent implementation. In many rural and economically backward areas, the promised benefits—such as scholarships and improved infrastructure—fail to reach the intended beneficiaries due to bureaucratic delays, lack of awareness, or corruption. Moreover, even when resources are allocated, their distribution is often uneven, favouring urban areas over rural regions. While policies like the NEP emphasise vocational training, the integration of such programs into secondary education remains limited. Many girls drop out because they do not see the relevance of traditional academic curricula in improving their future job prospects.

Policy Recommendations

Strengthening the implementation procedures of educational policies is crucial for improving the efficacy of initiatives like the Kasturba Gandhi Balika Vidyalaya (KGBV) and the National Education Policy (NEP). Empowering local organisations to supervise educational policy can ensure more efficient resource distribution to rural areas, enhancing monitoring and evaluation systems necessary for assessing these initiatives’ effectiveness. Regular evaluations will help identify weaknesses and areas for improvement, thereby fostering better policy execution (Chaudhury et al., 2019).

Increasing monetary incentives is another vital strategy. By enhancing financial support through the National Scheme of Incentives to Girls for Secondary Education (NSIGSE), families may find it easier to prioritise girls’ education. Additionally, establishing scholarships to cover indirect costs, such as school supplies and transportation, particularly for low-income families in rural areas, can alleviate financial burdens and encourage continued education for girls.

Incorporating vocational training into the curriculum is essential for aligning education with real-world job markets. Updating educational materials to include skill development programs can help girls understand the practical benefits of schooling (National Skill Development Corporation, 2021). Furthermore, creating apprenticeship opportunities in collaboration with local industries will provide them with valuable experience and improve their future career prospects.

Community awareness campaigns are vital for transforming societal attitudes toward girls’ education. Engaging local leaders to advocate for girls’ education can challenge cultural norms surrounding early marriage. Workshops aimed at educating parents about the long-term benefits of supporting their daughters’ education can further incentivise families to value education over traditional roles.

Finally, establishing support services within schools is crucial for addressing the challenges girls face in pursuing their education. Counselling programs can assist those struggling with issues related to early marriage or family responsibilities (Kumar & Singh, 2021). Creating safe spaces for girls to express their concerns will empower them in their educational journeys.

Conclusion

Reducing female dropout rates in Indian secondary education is extremely important, as it paves the way for increased economic growth and gender equality. To solve this complicated issue, the need for a multifaceted approach is important. While government policies and programs have laid a foundation, their inconsistent implementation and regional disparities limit their effectiveness. Addressing this issue demands more than financial support; it involves challenging deep-seated cultural norms that undervalue girls’ education, improving school infrastructure, and integrating vocational training to make education more relevant. The breaking of these barriers is needed to give way to a better educational landscape for women.

References 

• “Maharashtra Announces Free Higher Education Policy for EWS, SEBC, OBC Girls.” The Hindu, 2023.
• “Dropout Rates in 2022-23 at 5-Year High, Covid-19 Disruption to Blame.” Times of India, 2023.
• “Maharashtra Scrapped the No-Detention Policy: Uncovering the Problem-Solution Mismatch.” Vidhi Legal Policy, 2023.
• “National Curriculum Framework for School Education 2023.” National Council of Educational Research and Training.
• “National Education Policy (NEP 2020).” BYJU’S, 2022.
• “National Curriculum Framework – National Portal of India.” India.gov.in, 2022.
• “National Curriculum Framework – Drishti IAS.” Drishti IAS, 24 Aug. 2023.
• “NCF 2020 (National Curriculum Framework – A Complete Guide).” IITMS, 9 May 2023.
• “Economic Survey of Maharashtra 2023-24.” Government of Maharashtra, 2023.
• “State of the World’s Children 2022.” UNICEF, 2022.
• “Determinants of School Dropouts Among Adolescents: Evidence from a Longitudinal Study in India.” PMC, 2023.
• “Financial Inclusion in Rural India: An Assessment Based on Secondary Data.” Rural Financial Inclusion, 2022.
• “Investing in Girls’ Education: A Global Perspective.” World Bank, 2021.
• “National Family Health Survey (NFHS-4) India.” Ministry of Health and Family Welfare, 2019.
• “Economic Impacts of Child Marriage: A Review of the Literature.” Journal of Biosocial Science, 2020.
• Chaudhury, N., Hammer, J., Kremer, M., Muralidharan, K., & Rogers, F. H. (2019). Teacher absence in India: A snapshot. Journal of Comparative Economics.
• Government of India. (2021). National Scheme of Incentives to Girls for Secondary Education.
• Kumar, R., & Singh, P. (2021). Support services in schools: Addressing challenges faced by girls. Journal of Educational Research.
• National Skill Development Corporation. (2021). Skill development initiatives in India.

About the author: Nandika is an ambitious and compassionate student from Gurgaon, India. Currently enrolled in the 9th grade at The Shri Ram School, Moulsari, she is driven by a deep passion for making meaningful contributions to society. Inspired by her own experiences and a commitment to learning, she aspires to enrol in an undergraduate program in medicine, aiming to combine her love for science with a desire to create lasting change in healthcare.

Abstract

This research paper investigates the impact of health governance frameworks under the Ayushman Bharat scheme on healthcare access and outcomes in Jharkhand, an underserved state in India. Through a meticulous examination of enrolment data, service utilisation, geographical coverage, patient satisfaction and healthcare provider performance, the study evaluates the scheme’s efficacy. While the findings demonstrate significant improvements in healthcare access, they also reveal persistent challenges, particularly in ensuring equity for marginalised communities. The paper concludes with policy recommendations designed to improve the scheme’s implementation, thereby enhancing healthcare outcomes and ensuring more equitable access across Jharkhand.

Introduction

Ayushman Bharat, inaugurated by the Government of India in 2018 is a groundbreaking health insurance initiative aimed at extending financial protection to over 500 million economically vulnerable individuals. The program offers coverage for secondary and tertiary healthcare services with a limit of 500,000 Indian rupees per family per annum. This scheme is intended to mitigate the financial strain of healthcare expenses, which, according to a report by the Public Health Foundation of India, accounts for over 60% of household debt among low-income families in India (Kumar et al., 2021).

Jharkhand, characterised by a predominantly rural and tribal population, ranks among the lowest in India concerning healthcare indicators. The state’s infant mortality rate (IMR) stands at 30 per 1,000 live births, surpassing the national average of 28 (“National Family Health Survey-5, 2023). Moreover, over 60% of Jharkhand’s population resides in rural areas, where access to healthcare services is severely hampered by geographical isolation and substandard infrastructure.

How do health governance frameworks under Ayushman Bharat influence access to healthcare and social outcomes in Jharkhand? This study is pivotal in elucidating how the scheme influences healthcare access and outcomes in Jharkhand, offering critical insights into the program’s successes and challenges. The findings will serve as a valuable resource for policymakers striving to enhance healthcare delivery in underserved regions.

Current State of Healthcare Access in Jharkhand

Since its launch, Ayushman Bharat has successfully enrolled approximately 6.85 million beneficiaries in Jharkhand, with a significant majority originating from rural and tribal communities (National Health Authority, 2023). The scheme’s extensive outreach has resulted in 74% of the enrolled population residing in rural areas and 22% belonging to tribal communities (National Health Authority, 2023). However, disparities in enrolment rates persist, particularly among marginalised groups, where logical obstacles and a lack of awareness impede broader coverage.

Data from the Ministry of Health and Family Welfare reveals that over 1.2 million hospital admissions have been registered under Ayushman Bharat in Jharkhand since 2018 (MoHFW, 2023). The most frequently accessed services include maternal healthcare (accounting for 34% of admissions), cardiovascular treatments (18%), and general surgery (16%). Despite these achievements, service utilisation remains inconsistent, with lower uptake observed in the most remote regions due to travel challenges and limited healthcare facilities.

Jharkhand’s challenging terrain exacerbates disparities in healthcare access. The state boasts only 0.52 healthcare facilities per 10,00 population in rural areas, compared to the national average of 1.04 (National Health Profile, 2022). Although Ayushman Bharat has facilitated the establishment of over 300 new healthcare centres, many remote areas continue to face significant accessibility challenges. For instance, in the Simdega district, patients often travel over 50 kilometres to reach the nearest hospital, resulting in delayed treatment and adverse health outcomes.

Surveys conducted by the Centre of Health Research indicate that 62% of beneficiaries in Jharkhand express satisfaction with the services provided under Ayushman Bharat, primarily due to the reduction in out-of-pocket expenses (Singh and Raj, 2023). However, 28% report dissatisfaction, citing issues such as prolonged wait times, inadequate facilities, and the unavailability of essential medicines. These mixed sentiments underscore the need for continuous monitoring and enhancement of service quality.

A comparative analysis of healthcare data pre- and post-Ayushman Bharat implementation reveals notable improvements in treatment outcomes. For example, Jharkhand’s maternal mortality ratio (MMR) has decreased from 165 per 100,000 live births in 2018 to 140 in 2023 (NFHS-5, 2023). Additionally, hospital readmissions for chronic illnesses have reduced by 15%, indicating better management and follow-up care under the scheme (MoHFW, 2023).

The performance of healthcare providers is integral to the scheme’s success. According to a 2022 audit by the National Institute of Public Finance and Policy, 78% of healthcare providers in Jharkhand adhere to the treatment protocols established under Ayushman Bharat. However, the audit also revealed significant variations in adherence rates, with districts such as Pakur and Sahibganj falling below 60% due to resource constraints and insufficient training (NIPFP, 2022).

Implementation Challenges

The enrolment process under Ayushman Bharat is beset by significant challenges, particularly in Jharkhand’s remote regions. A survey by the Indian Council of Medical Research (ICMR) found that 42% of eligible individuals in these areas were not enrolled due to a lack of awareness and difficulties in obtaining the necessary documentation (ICMR, 2022). Addressing these issues through targeted awareness campaigns and streamlining the enrolment process is crucial for achieving broader coverage.

Fraud prevention remains a critical challenge in the implementation of Ayushman Bharat. According to the National Health Authority, approximately 1.8% of claims filed under the scheme in Jharkhand were identified as fraudulent in 2022, resulting in losses exceeding INR 20 million (NHA, 2023). The use of technology, including biometric authentication and digital health records, has mitigated some of these risks, but continuous vigilance and more sophisticated fraud detection mechanisms are required.

Effective coordination between the central and state governments is vital for the successful implementation of Ayushman Bharat. However, a report by the Brookings Institution noted that inconsistencies in resource allocation and administrative responsibilities have led to delays in service delivery and inefficiencies in Jharkhand (Patel and Sharma, 2023). Enhanced communication and collaboration between the two levels of government are essential for overcoming these challenges and improving the scheme’s efficacy.

Impact on Health Infrastructure

Ayushman Bharat has significantly bolstered hospital infrastructure in Jharkhand, with over 150 healthcare facilities upgraded and 300 new centres established since 2018 (MoHFW, 2023). Despite these advancements, the state still requires additional investments to address ongoing infrastructure deficits, particularly in remote areas where access to healthcare remains constrained.

The healthcare workforce in Jharkhand has expanded under Ayushman Bharat, with the recruitment of 3,500 new healthcare workers, including doctors, nurses, and paramedics (NHA, 2023). However, challenges in staffing and skill development persist, particularly in rural and tribal areas. Continuous training and capacity-building efforts are essential to ensure that healthcare workers are adequately equipped to meet the population’s needs.

The integration of technology into healthcare delivery under Ayushman Bharat has been transformative. The use of telemedicine services has expanded access to specialised care, particularly in rural areas, with over 120,000 consultations conducted via telemedicine platforms in Jharkhand in 2023 (NHA, 2023). Additionally, the implementation of digital health records has streamlined service delivery and improved the efficiency of healthcare systems. However, disparities in technological adoption remain, with some regions benefiting more than others.

Policy Recommendations

To improve the enrolment process under Ayushman Bharat, the government should implement targeted awareness campaigns, particularly in tribal and rural areas. Simplifying documentation requirements and providing administrative support at the community level can also increase enrolment rates, ensuring that more individuals benefit from the scheme (Basu, 2024). Many potential beneficiaries, particularly in rural and tribal communities, remain unaware of the Ayushman Bharat scheme’s benefits or eligibility requirements. Conducting targeted awareness campaigns that are culturally sensitive and linguistically appropriate can help bridge this knowledge gap. Partnering with local influencers, community leaders, and healthcare workers can increase outreach effectiveness and credibility (Bhati et al, 2023). Using multimedia approaches, including radio, local television, community meetings, and mobile units for remote areas, can maximize reach.

Complex documentation requirements often discourage or prevent enrolment in the scheme. Streamlining these requirements, such as allowing for alternative forms of identification where standard documents are unavailable, can significantly ease access. Integrating biometric verification or mobile-based registration options may also facilitate quicker, more accessible enrolment processes, especially for those who lack physical documents or literacy skills. Establishing enrolment kiosks in local government offices, primary health centers, and mobile units dedicated to registration in rural or tribal regions can provide direct support to individuals (Sharma, Rohatgi, Jain and Singh, 2023). Training local administrative staff and community health workers on the enrolment process will equip them to assist with documentation and registration, reducing barriers for those unfamiliar with digital platforms or formal processes. These personnel can also act as local Ayushman Bharat ambassadors, building trust and familiarity within their communities.

Implementing a robust feedback mechanism that gathers input from enrolled and potential beneficiaries can help identify specific barriers to enrolment and improve the process over time. A system that allows beneficiaries to report issues through local representatives or mobile platforms ensures that the government receives timely information on enrolment challenges in remote areas, enabling them to make data-driven adjustments to the process (Joseph, Hari Sankar and Nambiar, 2021).

Additionally, to strengthen fraud detection under the Ayushman Bharat scheme, a multifaceted approach incorporating advanced data analytics, governance protocols, and robust oversight is essential. Advanced data analytics, including machine learning and predictive algorithms, can be a powerful tool for identifying patterns of fraudulent activity (Panda, 2019). By analysing large datasets across patient claims, provider behaviour, and billing records, the government can detect anomalies indicative of fraud, such as inflated treatment costs, unnecessary procedures, or duplicate claims. For instance, predictive analytics can flag high-risk providers or beneficiaries for review based on unusual billing patterns or deviations from regional healthcare norms (Bhattacharya, Madan Gopal and Garg, 2024).

Establishing a centralized, interoperable data platform that connects with various government databases (e.g., Aadhaar, health records, income databases) would allow cross-verification of beneficiary information, minimizing duplicate enrolments and identity fraud. This system can also integrate with other healthcare databases across states and regions, enabling a comprehensive view of beneficiary activities across different locations (Mishra, Yadav and Joe, 2024).

Introducing rigorous governance protocols is critical for accountability. Protocols such as mandatory pre-authorization for high-cost treatments, real-time monitoring of claims, and routine audits for healthcare providers and beneficiaries can deter fraudulent practices (Bhati et al, 2023). Additionally, establishing a risk-based audit approach that targets providers and beneficiaries with a higher likelihood of fraud can optimize the use of resources in overseeing the scheme. Regular training programs for personnel involved in claims processing, data analysis, and audits can improve the detection of fraudulent practices (Chauhan et al, 2022). Equipping these professionals with specialized skills in fraud detection, risk assessment, and analytical tools will enable them to effectively identify and address potential fraud cases. Partnerships with private sector firms or NGOs experienced in healthcare fraud detection could bring additional expertise and technological insights (Lahariya, 2018).

Improving coordination between the central and state governments is also essential for the successful implementation of Ayushman Bharat. This approach will help ensure that resources are optimally used, challenges are swiftly identified and addressed, and that both levels of government work collaboratively to achieve the scheme’s goals. Creating joint task forces composed of representatives from both central and state governments can provide a platform for continuous collaboration and localized decision-making (Kamath and Brand, 2023). These task forces can be set up at national, state, and district levels, each with defined roles in implementing, monitoring, and evaluating the scheme. State-level task forces can focus on adapting the program to regional contexts, while district task forces ensure last-mile delivery, especially in underserved rural and tribal areas.

A digital coordination portal accessible to both central and state authorities can improve data sharing and streamline communications. This portal could integrate real-time data on scheme performance, financial disbursements, provider networks, and beneficiary feedback, facilitating transparency and allowing both levels of government to monitor the scheme’s status at any time (Mishra, Yadav and Joe, 2024). Features like automated alerts for discrepancies in resource allocation or beneficiary enrolment can prompt quick intervention, ensuring timely responses to emerging issues. Differences in state-level protocols for implementation and resource allocation can sometimes lead to inconsistencies in beneficiary experience and healthcare delivery. Establishing standardized, adaptable guidelines can promote uniformity while allowing for local customization (Sahoo and Sriram, 2019). These guidelines might cover aspects like eligibility verification, claim processing, and reporting mechanisms, ensuring that the scheme’s core objectives are upheld while respecting state-specific needs.

Finally, ensuring equitable access to healthcare for all population groups, particularly marginalised and tribal communities, is a key priority. Ensuring equitable access to healthcare under the Ayushman Bharat scheme, particularly for marginalized and tribal communities, demands a focus on the unique barriers these groups face. Targeted interventions are essential to create a more inclusive healthcare system that addresses structural inequalities and promotes accessible, culturally sensitive healthcare (Chauhan et al, 2022).

Marginalized and tribal communities often face an information gap regarding available healthcare services and their eligibility under the Ayushman Bharat scheme. Deploying community health workers and local NGOs to conduct outreach in these communities can improve awareness and education. Materials and information sessions should be in local languages, using culturally relevant methods to make healthcare concepts accessible. Community events, interactive workshops, and mobile information units can further bridge the knowledge gap (Sharma, Rohatgi, Jain and Singh, 2023). Many tribal and marginalized communities reside in remote areas with limited healthcare infrastructure. Establishing mobile health units that can regularly visit these areas offers a way to bring services directly to underserved populations. These units could provide primary care, screening, enrolment services, and referrals, reducing the need for community members to travel long distances for healthcare (Mishra, Yadav and Joe, 2024). Mobile health services should ideally include staff who understand local languages and cultural nuances, fostering trust and engagement.

The enrolment process for Ayushman Bharat can be complex and may require documents that marginalized and tribal populations lack. Simplified enrolment procedures that allow alternative forms of identification, such as biometric verification or locally issued identity certificates, can make enrolment more accessible. Additionally, setting up enrolment support kiosks in tribal community centers or local government offices, staffed by trained personnel, can further ease the process (Joseph, Hari Sankar and Nambiar, 2021). Ensuring that healthcare providers understand the cultural and social context of marginalized and tribal communities can improve the quality of care and trust between patients and providers. Training programs on cultural sensitivity, communication styles, and traditional health beliefs can help providers deliver respectful, empathetic care. Involving local community members in healthcare teams as interpreters or cultural liaisons can also enhance mutual understanding and trust.

Involving representatives from tribal and marginalized communities in healthcare governance structures allows them to advocate for their communities’ needs directly. Including them in decision-making bodies, advisory panels, and regional health councils can ensure that healthcare policies and strategies reflect their unique needs (National Health Authority, 2023). This representation also allows the government to gather direct insights on barriers these groups face, making interventions more relevant and effective.

Conclusion

Ayushman Bharat has made substantial progress in enhancing healthcare access and outcomes in Jharkhand, particularly in rural and tribal areas. The scheme has facilitated increased enrolment, improved healthcare infrastructure, and expanded access to essential services. However, challenges persist, particularly in ensuring equitable access to healthcare for marginalised communities. The findings underscore the importance of addressing these challenges through targeted policy interventions and sustained investment in healthcare infrastructure and workforce development.

The findings of this study hold significant implications for healthcare policy and governance in India. They highlight the necessity for tailored interventions to address the unique challenges faced by underserved regions like Jharkhand. Strengthening coordination between the central and state governments and promoting equity in healthcare access are critical for the successful implementation of large-scale health initiatives like Ayushman Bharat.

Future research should focus on long-term health outcomes under Ayushman Bharat and explore the impact of complementary healthcare policies. Additional studies could investigate the effectiveness of specific interventions aimed at improving healthcare access and equity in underserved regions.

References

• Basu, Rumki. “The Ayushman Bharat Programme in India.” Indian Journal of Public Administration 70, no. 2 (2024): 413-418.
• Bhati, Akshaya Nidhi, Arun Kumar, Mehedi Masud, and Dac-Nhuong Le. “An Overview of Healthcare Policy in India for Designing New Customised Health Services for the Patient.” 5G-Based Smart Hospitals and Healthcare Systems (2023): 46-62.
• Bhattacharya, Sudip, K. Madan Gopal, and Suneela Garg. “Sustaining Current Policies and Introducing New Initiatives: Strategic Five-year Plan for the Government of India.” Journal of the Epidemiology Foundation of India 2, no. 3 (2024): 134-143.
• Chauhan, Vishal, Neha Dumka, Erin Hannah, Tarannum Ahmed, and Atul Kotwal. “Recent initiatives for transforming healthcare in India: A political economy of health framework analysis.” Journal of Global Health Economics and Policy 2 (2022): e2022002.
• “ICMR Survey on Ayushman Bharat Enrollment in Remote Regions.” Indian Council of Medical Research, 2022.
• Joseph, Jaison, Hari Sankar D, and Devaki Nambiar. “Empanelment of health care facilities under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) in India.” PloS one 16, no. 5 (2021): e0251814.
• Kamath, Rajesh, and Helmut Brand. “A critical analysis of the world’s largest publicly funded health insurance program: India’s Ayushman Bharat.” International Journal of Preventive Medicine 14, no. 1 (2023): 20.
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• Patel, Mukesh, and Ravi Sharma. “Coordinating Healthcare Policies in India: Lessons from Ayushman Bharat.” Brookings Institution India Report, 2023.
• Sahoo, Manoj K., and D. Sriram. “Agility in Governance through Public Health Initiatives: The Case of India’s Ayushman Bharat-National Health Protection Mission.” GNLU JL Dev. & Pol. 9 (2019): 25.
• Sharma, R. S., Aishwarya Rohatgi, Sandeep Jain, and Dilip Singh. “The Ayushman Bharat Digital Mission (ABDM): making of India’s digital health story.” CSI Transactions on ICT 11, no. 1 (2023): 3-9.
• Singh, Suraj, and Anil Raj. “Patient Satisfaction under Ayushman Bharat: A Study in Jharkhand.” Centre for Health Research, 2023, pp. 40-55.

About the author: Raised in Mumbai and currently living in Bangalore, Neel Saraf is a 12^th Grade student at The International School Bangalore. Alongside his interests in finance and football, Neel is passionate about making a lasting impact in his community. His academic pursuits include Economics and clean energy. He aims in the future to contribute to sustainable progress.

Abstract

India, a country acclaimed as the fastest-growing major economy, stands at a pivotal juncture where economic expansion converges with environmental responsibility. In this context, addressing the poor financial health of electricity distribution companies (DISCOMs) is crucial for ensuring the success of India’s clean energy transition. This paper seeks to analyze the challenges posed by the financial distress of DISCOMs and its impact on renewable energy adoption in India. By drawing lessons from Vietnam’s energy policy reforms, this research aims to provide actionable insights for enhancing the financial health of DISCOMs, thereby supporting India’s sustainable energy goals.

Introduction

India’s commitment to addressing climate change and transitioning to cleaner energy sources is underscored by its ratification of the Paris Agreement in April 2016. Before this, India submitted its Nationally Determined Contributions (NDCs) in 2015, which have been surpassed ahead of schedule (Press Trust of India, 2023). As such, at the COP26 climate summit in Glasgow in 2021, Prime Minister Modi announced the Panchamrit or the five-point agenda to combat climate change:

1. Reaching 500 GW non-fossil energy capacity by 2030 which is currently at 203 GW according to the Central Electrical Authority (2024)
2. Fulfilling 50% of India’s energy requirements through renewable energy by 2030
3. Reducing total projected carbon emissions by one billion tons from now to 2030
4. Reducing the carbon intensity of the economy by 45% by 2030 over 2005 levels  (33% as of 2019)
5. Achieving the target of net zero emissions by 2070

Source: Central Electrical Authority’s Installed Capacity Report from June 2017 to June 2024 (Central Electrical Authority, 2024)

The above figure illustrates India’s evolving energy landscape between June 2017 and June 2024, showing the total installed capacity of different energy sources. Over these seven years, there has been significant growth in the country’s total installed capacity, which increased from 330,273.65 MW in June 2017 to 446,189.72 MW (~35%) in June 2024. This growth trajectory highlights India’s efforts to expand its energy infrastructure to meet rising demand, as the country seeks to balance energy security with sustainable development.

Fossil fuels have remained the largest contributor to India’s energy capacity, increasing by ~10% in this period. Nevertheless, there has been considerable renewable energy capacity addition, increasing by ~85% in this period. Among renewable energy sources, solar energy stands out for its growth: an impressive 550% increase in capacity during this period This sharp rise demonstrates India’s commitment to renewable energy, driven by favorable government policies such as the PM KUSUM solar pump policy, falling costs of solar technology, and the growing recognition of the need for sustainable energy solutions.

Clean Energy Transition Challenge: Poor Financial Health of DISCOMs

Electricity distribution companies, commonly known as DISCOMs, play a crucial role in the power sector by managing the distribution and retail supply of electricity to end consumers. They serve as the final link between power generation and consumption, ensuring that electricity generated by power producers reaches residential, commercial, and industrial users. In India’s energy landscape, DISCOMs are responsible for maintaining grid stability and are key actors in the nation’s clean energy transition. Their performance directly affects not only the electricity sector but also the broader economy, influencing energy access and affordability.

To foster renewable energy adoption, India has implemented the Renewable Purchase Obligation (RPO) policy. This policy mandates that DISCOMs, open-access consumers, and captive power producers procure a specific percentage of their electricity from renewable energy sources (Poswal, 2024). The RPO target has been consistently raised over the years to align with India’s clean energy ambitions. For the year 2023-24, the Ministry of Power set an RPO target of 24.61%, highlighting the government’s commitment to accelerating renewable energy adoption (Rishi, 2022). Nevertheless, many DISCOMs have struggled to meet their RPO targets due to their poor financial health. This financial distress stems from high levels of debt, unpaid subsidies, and inefficiencies in revenue collection. Figure 2 below illustrates a key challenge facing DISCOMs, showcasing the gap between the average revenue realization, which is the revenue that DISCOMs receive per unit of electricity sold, and the average cost of electricity supply, which represents the total cost incurred in supplying electricity, including procurement, transmission, and distribution expenses.

Source: NITI Aayog’s India Climate and Energy Dashboard (2022)

From 2015-16 to 2022-23, there has consistently been a gap between the cost of supply and the revenue realization. While the average cost of supply has risen steadily, reaching Rs. 6.73 per kWh in 2022-23, the average revenue realization has failed to keep pace, remaining at Rs. 5.48 per kWh in the same year. This persistent revenue-cost gap indicates that DISCOMs are unable to recover their expenses, which results in mounting financial losses.

These financial constraints severely limit their ability to invest in the infrastructure upgrades required to integrate renewable energy into the grid and also fulfill their RPO mandates. Only 5 states in India have been compliant with their RPO targets, with the others falling behind), which also damages investor confidence and hinders RE expansion (Poswal, 2024).

Consequently, despite regulatory mandates like the RPO, the poor financial health of DISCOMs remains a major bottleneck in India’s transition towards renewable energy.

India’s Response: Revamped Distribution Sector Scheme (“RDSS”)

The Government of India launched the Revamped Distribution Sector Scheme (RDSS) in 2021 as a comprehensive initiative to address the persistent challenges faced by electricity distribution companies (DISCOMs). This scheme represents a significant effort to reform the power distribution sector, which has long been considered the weakest link in India’s electricity value chain (Press Information Bureau, 2023). Key tangible targets of the RDSS include reducing Aggregate Technical & Commercial (AT&C) losses to 12-15% across India. AT&C losses represent the total technical and commercial losses in the distribution network, including energy lost during transmission and distribution, as well as revenue losses due to inefficiencies such as theft, non-payment, and billing errors. As per Figure 3, in 2022-23, India’s AT&C losses were ~19% which is significantly higher than the global average of 8.1% (Gussan et al, 2016).

Source: NITI Aayog’s India Climate and Energy Dashboard (2022)

Additionally, RDSS also aims to eliminate the gap between the Average Cost of Supply (ACS) and Average Revenue Realized (ARR) by 2024-25. The scheme is structured into two main parts: Part A focuses on financial support for prepaid smart metering, system metering, and distribution infrastructure upgradation. Part B emphasizes training, capacity building, and other enabling activities. Training and capacity building equip DISCOM staff with the skills needed to manage new technologies and efficiently implement reforms, which is critical for the success of infrastructure upgrades. Additionally, enabling activities, such as stakeholder engagement, help in creating awareness and cooperation among local communities and customers, facilitating smoother implementation of reforms (Indian Ministry of Power, 2021).

One of the strengths of the RDSS is its comprehensive approach, which addresses the technical and managerial aspects of DISCOM operations. The scheme’s emphasis on smart metering and IT enablement can potentially transform billing efficiency and reduce losses. Additionally, the RDSS introduces a results-linked financing mechanism, where the release of funds is contingent upon DISCOMs meeting pre-qualifying criteria and achieving basic minimum benchmarks. These benchmarks include reducing AT&C losses, improving billing efficiency, and enhancing collection rates. The mechanism ensures that financial support is tied to tangible improvements in DISCOM performance, thereby incentivizing efficient operations and fostering accountability. By making funding conditional on performance, this approach encourages DISCOMs to prioritize reforms and adopt best practices, ultimately contributing to improved financial health and service quality. This approach incentivizes performance and encourages DISCOMs to implement reforms more effectively (Indian Ministry of Power, 2021).

The Average Cost of Supply (ACS) and Average Revenue Realization (ARR) have further diverged in 2022-23. The gap between ACS and ARR continues to widen, highlighting the ongoing financial strain faced by DISCOMs. The divergence can be attributed primarily to poor tariff rationalization, which has led to DISCOMs being unable to recover their costs adequately.

Tariffs, in the context of electricity, refer to the pricing structure that determines how much consumers pay for the electricity they use. Generally, they should cover the costs of generating, transmitting, and distributing electricity, as well as administrative expenses and margins for distribution companies Tariff rationalization is the process of aligning electricity tariffs with the actual cost of supply, ensuring that DISCOMs can recover their expenses and maintain financial sustainability. However, in India, the current tariff system has significant shortcomings, which the RDSS has failed to address.

India’s electricity tariffs are regulated by State Electricity Regulatory Commissions (SERCs) under the broad guidance of the Central Electricity Regulatory Commission (CERC). The Indian tariff structure is characterized by cross-subsidization, where industrial and commercial consumers pay higher tariffs to subsidize the lower rates for agricultural and residential users. This system is intended to make electricity affordable for vulnerable sections of society, but it also burdens industrial and commercial users disproportionately. For example, commercial users are charged tariffs 55% higher than the national average power supply cost, while industrial users face tariffs 25% higher (Einrac, 2023). Conversely, domestic and agricultural consumers benefit from tariffs that are 30% and 90% lower than the cost of power supply, respectively. While this approach is politically popular, it significantly strains the financial viability of DISCOMs (Einrac, 2023).

Power Purchase Cost (PPC) is the largest expense for DISCOMs, accounting for 65-75% of their total costs. PPC is heavily influenced by the price of coal and the cost of newer renewable energy technologies. In addition to PPC, transmission charges and operations and maintenance (O&M) expenses also contribute substantially to the overall cost structure. Despite these high costs, DISCOMs are often unable to adjust tariffs annually to reflect changes in generation costs, primarily due to regulatory and political interference (Einrac, 2023). Tariff adjustments are frequently delayed to appease voters, resulting in tariffs that are set below the actual cost of supply. This practice leads to revenue shortfalls, accumulating debt, and ultimately a growing gap between ACS and ARR.

The expansion of energy access through initiatives like Saubhagya has been successful in connecting more households to the grid, but it has also increased the number of low-paying consumers. Government subsidies for agriculture and other sectors further exacerbate the financial strain on DISCOMs, contributing to a rise in retail tariffs for non-subsidized consumers. The combination of high transmission losses, delayed tariff adjustments, and the burden of cross-subsidization has left DISCOMs financially vulnerable and unable to invest in necessary infrastructure upgrades.

Energy Sector Tariff Reforms in Vietnam

Vietnam’s experience in reforming its power sector offers valuable lessons for India, particularly in addressing the weaknesses of the RDSS. Both countries have experienced rapid economic growth and increasing electricity demand. Vietnam’s GDP growth averaged 6.23% annually from 2000 to 2024, (Trading Economics 2023) while India’s averaged 7.01% in the same period. This economic growth has driven a surge in electricity consumption, with Vietnam’s increasing nearly 9-fold from 22.4 TWh in 2000 to 192.9 TWh in 2018 (lượng, 2019), and India’s more than tripling from 384 TWh to 1,329 TWh over the same period (Jaganmohan, 2021).

Moreover, both nations faced similar challenges in their power sectors, including high technical and commercial losses, inadequate infrastructure, and reliance on government subsidies. However, Vietnam has made remarkable progress in improving its power sector’s efficiency and financial health. Electricity of Vietnam (“EVN”)is the state-owned corporation responsible for electricity generation, transmission, and distribution across Vietnam (Do & Sharma, 2011). In 2022, EVN’s total revenue from electricity sales was 494,359.28 billion VND, with an average selling price of 1,953.57 VND/kWh. The total cost of electricity production amounted to 441,356.37 billion VND, with a corresponding cost of 1,744.12 VND/kWh (Vietnam Energy Online, 2024). Additionally, Vietnam reduced its Transmission and Distribution (T&D) losses from over 20% in the early 2000s to around 9% by 2014 and also achieved universal electrification by 2017 (Trading Economics, 2020).

Before the reforms, Vietnam’s electricity tariff structure was heavily regulated, with tariffs set below the cost of supply to ensure affordability for consumers. However, this led to significant financial strain on EVN, which struggled to cover its operational and investment costs. The low tariffs also discouraged private investment in the power sector, as returns were insufficient to justify the risks involved. This situation mirrors the situation India’s power sector and DISCOMs face currently (World Bank, 2020).

The goals of the tariff reform were to establish a sustainable pricing mechanism that would ensure the financial viability of EVN while attracting private investment to meet the growing electricity demand. The government aimed to gradually increase tariffs to reflect the actual cost of electricity generation, transmission, and distribution, thereby reducing subsidies and improving the financial health of the power sector (Asian Development Bank, 2015).

Policy Recommendations

Based on the four tariff reforms observed in Vietnam, India can derive several policy recommendations to improve the financial health of DISCOMs and ensure a successful clean energy transition. Firstly, India should develop a clear, phased roadmap for tariff adjustments over the next decade, similar to Vietnam’s approach. This roadmap should gradually increase tariffs to reflect the actual costs of electricity generation, transmission, and distribution, ensuring that DISCOMs can recover their operational expenses and achieve financial viability. The gradual nature of these increases will help minimize the impact on vulnerable populations while providing time for industries and consumers to adapt. Additionally, this approach also addresses the RDSS’s weakness in tackling political interference in tariff settings by creating a long-term, transparent plan that is less susceptible to short-term political pressures. A phased and transparent tariff reform plan can help reduce the influence of political considerations on tariff levels, ensuring that DISCOMs can achieve financial sustainability while maintaining affordability for vulnerable groups.

A key aspect of Vietnam’s reform was the annual review and adjustment of base tariffs to ensure cost recovery. India should adopt a similar mechanism where State Electricity Regulatory Commissions (SERCs) conduct yearly assessments of tariffs to ensure they remain aligned with changes in generation and distribution costs. This adjustment process should be transparent and less influenced by political considerations, which will enhance the financial sustainability of DISCOMs and foster investor confidence in the sector.

Furthermore, Time-of-Use (ToU) pricing, where electricity rates vary depending on the time of day, can help manage peak demand and improve grid efficiency. Maharashtra has already implemented ToU pricing successfully, with significant improvements in managing peak loads and promoting energy conservation.  By expanding ToU pricing across India, DISCOMs can incentivize off-peak usage among industrial and commercial consumers, thereby reducing pressure on the grid during high-demand periods and encouraging more efficient use of energy resources (World Bank, 2020).

And finally, Vietnam’s experience shows that cross-subsidies between different customer classes should be gradually reduced to ensure that tariffs are aligned with the cost of supply. In India, this would involve eliminating cross-subsidies where industrial and commercial users bear the burden of subsidizing residential and agricultural consumers (World Bank, 2020). However, cross-subsidies should be retained for high-cost rural areas where distribution costs are significantly higher, thus protecting vulnerable populations while improving cost efficiency for DISCOMs. For example, Karnataka has taken steps to gradually increase tariffs for agricultural users while offering incentives for adopting efficient irrigation technologies such as solar pumps under the PM-KUSUM scheme. This approach helps to reduce the financial burden on DISCOMs while promoting energy conservation and efficiency among agricultural consumers.

Conclusion

This research has examined the impact of the poor financial health of electricity distribution companies (DISCOMs) on India’s clean energy transition and explored potential lessons from Vietnam’s energy sector reforms. The findings indicate that the persistent gap between the Average Cost of Supply (ACS) and Average Revenue Realization (ARR), combined with high Aggregate Technical & Commercial (AT&C) losses, presents a significant impediment to achieving India’s renewable energy targets.

The study has critically evaluated the Revamped Distribution Sector Scheme (RDSS), noting its limited effectiveness in addressing crucial issues such as tariff rationalization. The comparative analysis of Vietnam’s reform experience has yielded valuable insights, particularly regarding the implementation of gradual, market-oriented reforms in the electricity sector. By adopting these recommendations, India can move towards a more financially sustainable electricity distribution model. Phased tariff reforms, reducing cross-subsidies while protecting the vulnerable, implementing time-of-use pricing, and ensuring annual tariff reviews will collectively address many of the current challenges faced by DISCOMs. This comprehensive approach will not only stabilize the financial health of DISCOMs but also support India’s broader clean energy transition goals. Improving the financial viability of DISCOMs will enable increased investment in grid infrastructure, which is crucial for integrating renewable energy sources into the grid. Moreover, a financially healthy DISCOM sector will be better positioned to meet Renewable Purchase Obligations (RPOs), thereby increasing renewable energy uptake. Enhanced investor confidence resulting from transparent pricing and financial sustainability will also attract more private investments in renewable energy projects, accelerating India’s shift towards a greener energy mix.

References

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About the author: Tanmay Bhuta is a driven and ambitious youth with a passion for global politics and economics. Raised in Mumbai, he is a leader with his school community. Most recently, he was the Deputy Secretary General of his school’s Model United Nations. He also founded and led the WEPLAY Foundation to support underprivileged children in his community. Currently in Grade 12 at the Aditya Birla World Academy, Tanmay aspires to pursue an undergraduate program in business and economics with the hope of creating a meaningful impact on the world through social entrepreneurship.

Introduction

In the global economic landscape, India has evolved into a pivotal player, characterized by its rapid trade growth and industrial expansion, particularly since the liberalization policies of 1991. Over the last three decades, India’s integration into the global market has driven substantial economic progress, transforming it into one of the world’s leading emerging economies. With major trade partners like the United States, China, and the European Union, and critical sectors such as manufacturing, agriculture, and energy driving this growth, India has established itself as a key participant in international trade.

Simultaneously, however, India is grappling with an array of environmental challenges that threaten its long-term sustainability. From the variability of monsoons, which has far-reaching impacts on agriculture, to the rising frequency of heatwaves and increasing sea levels that endanger coastal cities, the consequences of climate change are becoming more pronounced (Abbass et al, 2022). India is now at a crossroads where the imperative to foster economic growth must be reconciled with the need for urgent climate action.

In response to the growing threat of climate change, India launched the National Action Plan on Climate Change (NAPCC) in 2008, aimed at promoting sustainable development and integrating climate considerations into economic planning. The NAPCC consists of eight core missions, including the National Solar Mission and the National Mission for Enhanced Energy Efficiency, which seek to balance economic development with environmental stewardship (Dechezleprêtre et al, 2022). However, the implementation of these policies has raised questions regarding their impact on India’s burgeoning trade sectors. The dual objectives of economic expansion and climate mitigation present significant challenges, as policies designed to curb carbon emissions may hinder the growth of energy-intensive industries that form the backbone of India’s trade economy (Durán-Romero et al, 2020). The significance of this paper lies in its exploration of the trade-offs between climate mitigation and economic growth in India, a developing nation with both ambitious climate goals and pressing economic demands. By investigating how the NAPCC affects key trade sectors, this research seeks to provide insights into how India can harmonize its climate policies with its trade objectives, contributing to the broader discourse on sustainable development in emerging economies.

Historical Context

India’s economic transformation can be traced back to the liberalization reforms of 1991, a watershed moment in the country’s history that shifted its economic model from a protectionist, state-controlled economy to one that embraced market-oriented policies and global trade. Prior to 1991, India had followed a highly restrictive economic model characterized by heavy government intervention, import substitution policies, and a focus on self-reliance. This approach, while initially fostering some degree of industrialization and development post-independence, had by the late 1980s led to stagnation, inefficiency, and an unsustainable fiscal deficit. India was on the brink of a severe balance-of-payments crisis, necessitating a fundamental overhaul of its economic policies (Hussain et al, 2020).

The reforms introduced in 1991, led by then Finance Minister Dr. Manmohan Singh, marked a decisive break from this protectionist approach. They included dismantling the License Raj (a complex system of permits and regulations that stifled private enterprise), reducing tariffs and non-tariff barriers, and opening up key sectors of the economy to foreign direct investment (FDI). The privatization of state-owned enterprises and the creation of Special Economic Zones (SEZs) further encouraged industrialization and export-oriented growth (Joshi and Patel, 2009).

As a result, between 1991 and 2020, India experienced a profound economic transformation. The country’s Gross Domestic Product (GDP) grew by an average of 6-7% annually, positioning it among the fastest-growing major economies in the world. India’s export volume increased from approximately $18 billion in 1991 to over $300 billion by 2020, reflecting the growing importance of the country in global supply chains. Imports also surged during this period, rising from $24 billion in 1991 to over $450 billion by 2020, as India became increasingly integrated into the global economy. By 2020, trade accounted for nearly 40% of India’s GDP, demonstrating the country’s dependence on external markets for its continued economic expansion (Joshi and Patel, 2009).

This period also witnessed the rise of key economic sectors that propelled India’s trade growth and positioned the country as a global player in various industries. For instance, the liberalization era coincided with the rise of India’s IT and services sector, which quickly became one of the country’s largest and most globally competitive industries. By leveraging its skilled workforce and competitive labor costs, India became a global hub for software development, IT services, and business process outsourcing (BPO). Leading companies such as Infosys, TCS, and Wipro became household names in the global IT industry, and India’s services exports, particularly in IT, grew exponentially, reaching over $200 billion by 2020 (Hussain et al, 2020).

Additionally, India’s textiles and garment industry, traditionally a major component of its economy, also saw significant growth in the post-liberalization period. Favorable trade policies, along with access to global markets, enabled the industry to expand its export base, particularly to markets in the United States, Europe, and Southeast Asia. India became one of the largest textile exporters in the world, with the industry employing millions of workers across the country.

Environmental Challenges

India, with its vast geographic and climatic diversity is vulnerable to the impacts of climate change. From the towering Himalayas in the north to the extensive coastal plains in the south, the country’s varied ecosystems are under increasing strain due to global warming. The consequences of these environmental challenges are far-reaching, affecting everything from food security and water resources to public health and economic stability. These challenges necessitate not only immediate and robust climate mitigation policies but also long-term strategies for adaptation and resilience.

Monsoon rains are the lifeblood of India’s agricultural economy. Approximately 60% of India’s agricultural land is rain-fed, meaning the livelihood of millions of farmers and the food security of the nation are intricately tied to the performance of the monsoon season (Bekun, 2022). Historically, India has relied on the timely and predictable arrival of the monsoon to irrigate its crops, but climate change is altering this delicate balance.

Rising temperatures are one of the most visible manifestations of climate change in India. The frequency and intensity of heatwaves have increased dramatically over the past two decades, with severe consequences for public health, agriculture, energy consumption, and labor productivity. Furthermore, India’s long coastline, spanning over 7,500 kilometers, makes it particularly vulnerable to the impacts of sea-level rise, a consequence of global warming driven by the melting of polar ice caps and the thermal expansion of seawater. Coastal regions, which are home to nearly 20% of India’s population, are already experiencing the effects of rising sea levels, including coastal erosion, saltwater intrusion, and increased frequency of storm surges (Malhi, Kaur and Kaushik, 2021).

In addition to these coastal and agricultural challenges, India faces a significant environmental threat in the form of glacial retreat in the Himalayas. The Himalayas, often referred to as the “Water Tower of Asia,” are the source of many of India’s major rivers, including the Ganges, Brahmaputra, and Indus (Roy et al, 2022). These rivers provide essential water for drinking, agriculture, and hydroelectric power to millions of people across northern India.

India’s National Action Plan on Climate Change (NAPCC), launched in 2008 represents one of the country’s most significant efforts to address the multifaceted challenges posed by climate change. As one of the fastest-growing economies in the world, India faces the critical task of balancing its developmental needs with environmental sustainability. The NAPCC is a comprehensive strategy designed to promote sustainable development by integrating climate change mitigation and adaptation into the country’s economic and social planning (Shah, 2022). The plan is structured around eight core missions, each addressing key sectors such as energy, agriculture, water, and forestry, with the overall objective of reducing greenhouse gas emissions while ensuring the resilience of vulnerable communities and industries.

The NAPCC’s framework reflects the Indian government’s recognition of the growing threat that climate change poses to the country’s economy, particularly its trade sectors (Shivanna, 2022). From fluctuating agricultural yields due to unpredictable monsoons to rising costs in energy-intensive industries due to stricter environmental regulations, the NAPCC is aimed at creating policies that foster long-term sustainability without compromising economic growth.

Each of the eight missions under the NAPCC targets a specific aspect of climate change mitigation and adaptation, with tailored strategies to meet India’s broader environmental and developmental goals. These missions are designed to complement each other, creating a holistic approach to addressing both national and international climate commitments. For instance, the National Solar Mission is arguably the flagship initiative under the NAPCC, with the ambitious goal of increasing the share of solar energy in India’s total energy mix (Roy et al, 2022). The mission aims to promote the development of solar energy infrastructure, making India a global leader in solar power production and reducing the country’s dependence on fossil fuels.

While the NAPCC has made significant strides in addressing the impacts of climate change, its implementation has faced several challenges. One of the biggest challenges has been the lack of adequate financing for large-scale infrastructure projects, particularly in the renewable energy and water management sectors (Abbass et al, 2022). While international climate finance, such as funding from the Green Climate Fund, has provided some support, the scale of investment required is far greater than the funds currently available.

The complexity of coordinating between various government ministries, state governments and local authorities has also slowed the implementation of several key missions. For example, land acquisition for solar projects has faced delays due to bureaucratic inefficiencies, while water management programs have been hampered by conflicting state-level policies.

Industries that rely heavily on fossil fuels, such as coal mining, steel, and cement, have lobbied against stricter environmental regulations, citing concerns about job losses and reduced profitability. This has created political challenges for the government in implementing energy efficiency and renewable energy initiatives at the required scale.

Furthermore, the impact of the NAPCC on India’s trade sectors has been mixed. Energy-intensive industries, such as steel, cement, and textiles, have faced higher production costs due to compliance with energy efficiency standards, reducing their competitiveness in global markets. At the same time, the renewable energy sector has created new opportunities for trade, particularly in solar and wind technologies (Malhi, Kaur and Kaushik, 2021). However, the lack of a well-developed domestic manufacturing base for renewable energy components has led to a reliance on imports, particularly from China, which presents challenges for India’s goal of energy self-sufficiency.

This research on the impact of India’s National Action Plan on Climate Change (NAPCC) on its trade economy is anchored in two key theoretical frameworks that explore the complex relationship between trade policies and environmental regulations: the Porter Hypothesis and the Pollution Haven Hypothesis. These theories provide contrasting perspectives on how environmental regulations, like those under the NAPCC, can influence economic competitiveness, trade patterns, and industrial behavior. The framework also incorporates a comparative analysis of environmental policies in other developing countries, such as China and Brazil, to draw parallels and lessons for India’s trade-environment nexus (Suman, 2021).

The Porter Hypothesis, first introduced by economist Michael Porter in the 1990s, challenges the traditional view that environmental regulations inevitably impose a burden on industries by increasing operational costs and reducing competitiveness. Instead, Porter argues that well-designed and stringent environmental regulations can stimulate innovation, improve resource efficiency, and enhance productivity (Zhang and Fujimori, 2020). According to this hypothesis, industries that are subject to strict environmental regulations may be forced to innovate and adopt cleaner, more efficient technologies, which can lead to cost savings in the long term and give these industries a competitive edge in global markets.

The Porter Hypothesis posits that environmental regulations, rather than being solely a cost burden, can drive innovation in cleaner production technologies and more efficient resource use. In the context of the NAPCC, regulations such as energy efficiency targets under the National Mission for Enhanced Energy Efficiency (NMEEE) or emissions standards under the National Solar Mission can force energy-intensive industries (such as steel, cement, and textiles) to innovate. For example, industries that invest in energy-saving technologies may not only reduce their greenhouse gas emissions but also lower their energy consumption, thereby cutting costs over the long term. This increased efficiency can improve their competitiveness in both domestic and international markets, particularly as global demand shifts toward greener products and processes.

Recommendations

Based on the analysis of India’s climate policies under the National Action Plan on Climate Change (NAPCC), the sectoral impacts of these policies, and international comparisons with China, Brazil, and South Africa, this section offers a set of strategic recommendations. These aim to align India’s climate policies with its trade and economic goals, ensuring that sustainable development and economic growth are mutually reinforcing rather than conflicting. The recommendations are designed to help India navigate the complex trade-environment nexus and capitalize on the opportunities presented by the global transition to a low-carbon economy.

To effectively integrate trade and climate policies, India must adopt a holistic and coordinated approach that aligns the objectives of the NAPCC with its broader economic development goals. The country’s economic policies, particularly those related to trade, energy, and industrial development, must be reconciled with its climate ambitions to avoid conflicts and inefficiencies (Fekete et al, 2021).

India’s federal structure means that state governments have significant authority over local economic policies, including energy production, industrial regulations, and infrastructure development. To ensure that state-level policies align with national climate goals, the central government should offer financial incentives to states that meet renewable energy targets and other climate objectives. States that make significant progress toward decarbonizing their industries, reducing emissions, or adopting renewable energy sources could receive preferential access to federal funds, tax breaks, or infrastructure grants. This approach will encourage states to implement climate-friendly policies without fearing economic losses, thus promoting policy coherence across all levels of government.

For example, coal-dependent states like Jharkhand and Chhattisgarh could be incentivized to diversify their energy portfolios by investing in renewable energy projects, reducing their reliance on coal, and transitioning to a low-carbon economy.

Currently, there is a lack of coordination between national and state-level policies, particularly in sectors like energy and agriculture, where many state governments continue to provide subsidies for fossil fuels and water-intensive crops. A unified national policy framework that aligns climate and trade objectives would ensure that all stakeholders—both at the national and state levels—work toward the same goals. This integrated framework could include revising energy subsidies (Klenert et al, 2020). Gradually phasing out subsidies for fossil fuels, especially coal, while increasing financial support for renewable energy projects such as solar and wind. This would shift investment toward cleaner energy sources while maintaining economic growth in sectors that are heavily reliant on energy. Additionally, reallocating subsidies from water-intensive crops like rice and sugarcane to climate-resilient crops such as pulses, millet, and sorghum. This shift would reduce the environmental impact of agriculture while maintaining export competitiveness in emerging markets for eco-friendly, climate-resilient crops (Nawaz et al, 2021).

Conclusion

In conclusion, the rising tension between India’s climate change mitigation policies, outlined in the National Action Plan on Climate Change (NAPCC), and its trade economy underscores the challenge of balancing economic growth with environmental sustainability. Key sectors like agriculture, manufacturing, and energy face increased costs due to climate policies, particularly in energy-intensive industries such as steel and cement. While short-term economic burdens exist, the NAPCC has opened opportunities in renewable energy, positioning India as a potential leader in the global green economy.

However, misalignment between national climate goals and state-level economic priorities, such as coal subsidies, hampers progress. International models, such as China’s carbon pricing and Brazil’s Low-Carbon Agriculture Plan, demonstrate the feasibility of harmonizing trade with climate action. To move forward, India must integrate national and state policies, provide financial incentives for green technologies, and invest in capacity building to ensure industries can transition smoothly. Public-private partnerships, long-term planning, and R&D investment in sustainable technologies will be crucial for maintaining India’s global competitiveness. In embracing this green transformation, India can lead both in climate action and trade.

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About the author: Saanvi Fatehpuria is a dedicated and compassionate young woman who has been competing at the national level in India as an equestrian. Raised by a family who taught her to always fight for her rights and empowerment as a woman, she wishes to make a positive impact on the world through community work in gender rights. Currently, Saanvi is enrolled in Grade 12 at the Modern High School for Girls in India. She aspires to enroll for an undergraduate program in Political Science and work in the field of public policy.

Introduction

India is the largest democracy in the world, and citizens can vote based on adult franchise. In other words, any Indian citizen can register as a voter and cast their votes upon reaching the age of 18 (Shani, 2018). People from different parts of the country cast their votes to choose the “real head of the country” the Prime Minister for the next 5 years (Palshikar and Suri, 2014). Exit polls are surveys conducted by various agencies to predict election results based on voters’ opinions (Barthwal et al. 2024). However, incorrect exit polls can lead to confusion and it becomes a challenging task to predict the outcomes of an election correctly. This research report, therefore, will attempt to assess the inaccuracy of the exit polls in the context of the Lok Sabha in India. Simultaneously, the potential factors leading to such inaccuracies will also be discussed in this research report.

Literature Review

Concept of Exit Polls

Exit polls are defined as surveys conducted immediately as voters leave polling booths or stations (Hilmer, 2008). Exit polls are different from pre-election opinion polls in which voting results are predicted. Apart from that, pre-election polls are conducted to evaluate the overall conditions in which people are going to vote (Mishra and Jain, 2000). Such polls are also useful to understand what people have to say regarding different political parties and their respective candidates who are participating in such elections (Heath and Ziegfeld, 2018). This helps identify the potential candidates who might win the elections. On the other hand, exit polls are more accurate in predicting the election results owing to the time of their conduction. Exit polls are conducted after an election is held. Considering the change in the minds of people before and after the elections, exit polls are necessary to identify the patterns in people’s choice of candidates more accurately than pre-election polls (Willnat and Aw, 2009). Exit polls gather data from every possible person including their age, demographics, and the factors that they kept in mind while voting (Jain and Kumar, 2017). Such factors may include the performance of the current government, the potential of other parties, and their overall inclination towards any specific political ideology.

Role of Exit Polls in Indian Elections

Exit polls are like measuring tools that help assess or measure the likely outcomes of an election held recently (Heath and Ziegfeld, 2018). In the context of India, which is a large country with arguably the highest population in the world, conducting elections at such a level is itself a challenge. The diversity among people from different regions and states of the country influences their political ideologies (Willnat and Aw, 2009). They think differently and it is a challenge to forecast the results of elections held at the national level like the Lok Sabha elections. In such cases, pre-election polls cannot be effective unless the opinions are collected from voters after they cast their votes. As opined by Kumar, Rai, and Gupta (2016), exit polls are an essential part of the modern electoral process in India that helps in developing immediate insights into election results. Hence, exit polls serve the purpose of a critical tool for political analysts, media organisations, as well as, the general public to evaluate the results of an election prior to the completion of the official counts (Hilmer, 2008). Therefore, it becomes noticeable that exit polls become useful in predicting the results of elections in India to some extent.

Inaccuracies in Exit Polls in Indian Elections

Some of the common issues that can affect the accuracy of exit polls in Indian elections include sampling errors, non–response biases, incorrect time, and human error among others (Groves and Lyberg, 2010). Exit polls depend on samples of voters and the sample may not represent the entire voting population. Therefore, the chance of getting a skewed result increases with incorrect sampling. On the other hand, Swyngedouw (2001) some people may not be willing to participate in exit polls, and if the voting patterns of these non-respondents do not match that of respondents, the chance is high that the result of the exit polls will be high and such an incident is quite common in the context of the Indian elections. Timing is another factor that influences the accuracy of exit polls (Selb et al. 2013). As opined by Restrepo, Rael, and Hyman (2009), exit polls are influenced by changing demographics. Exit polls are conducted throughout the day, whereas voter turnout can vary at different times which is quite common in the context of Indian elections (Banerjee, 2011). As demographics change with time, it can impact the results of exit polls. The impact of human error can also not be ignored in this respect. Bjarnegård (2018) stated that the process of data collection may be affected due to mistakes made by the data collecting agency or due to the unwillingness of the participants to share correct information with the concerned agencies.

Methodology

The Inductive Approach was applied to conduct this research which has helped open the scope for this research to develop new theories based on the findings of this research (Thomas, 2006). It also helped the researcher observe things to conclude. New possibilities could be explored with the adoption of the Inductive Approach in this research (Kuczynski and Daly, 2003). The participation of the researcher in this research was enhanced as the Inductive Approach was followed. It also created natural curiosity and it also fostered a scientific mindset that helped data exploration with the promotion of a learning-by-doing approach (Kun, Mulder, and Kortuem, 2020). This helped enhance the quality of this research. The Exploratory Design helped conduct this study. Since qualitative data was used in this research, the Exploratory Design was meaningful for it (Lin et al. 2004). As more data was explored, it became useful for the researcher to use the same to understand the incorrectness in exit polls of Indian Lok Sabha elections. Data exploration helped use data in this study and complete it (Orina et al. 2015). The scope for a critical data analysis increased, and it became helpful to make the research free from biases which would have not been possible if the Explanatory or Descriptive Design had been applied. 

Data was collected from secondary sources and data relevant to this research was gathered from newspaper articles, reports, journal articles, and other sources of information (Johnston, 2014). While collecting the data, it was ensured that only peer-reviewed articles were collected and reputed sources were used to collect data. Data published on various sources including websites were also used to complete this study. Since time was limited, it was necessary to complete this research using secondary data (Sørensen, Sabroe, and Olsen, 1996). It also helped save costs as only free data was availed and used for this research.  Only qualitative data was collected for this research. Therefore, it was not possible to analyse the data using any statistical method. Rather, the Thematic Analysis approach was used for data analysis (Vaismoradi, Turunen, and Bondas, 2013). Themes were developed and the collected data were analysed under such themes so that the research aims mentioned in the Introduction section could be accomplished.

Findings

Causes behind incorrect exit polls in Lok Sabha elections of India

As reported in The Hindu newspaper, it has been identified that around 1 billion people participate in Lok Sabha elections (The Hindu, 2024). Therefore, conducting exit polls that can include all the voters is a challenging task. For the time being, it is only possible to survey only a portion of voters that causes biases to be in the exit polls. Some pieces of evidence show that exit polls went wrong in the Lok Sabha elections of 2004, 2014, and 2024 (KL, 2024). There are certain reasons for the mismatch between exit polls and actual results in Lok Sabha elections in India. Limited resources are a factor that affects the overall scale of exit polls and also impedes the overall correctness of exit polls (Business Standard, 2024). It is also identified that poll results of one state are used to predict the results of Lok Sabha. As identified by Mukhtar Abbas Naqvi, poll results of one state cannot be a referendum for other elections (The Print, 2024). The win of a political party in a state cannot determine its stand on the national level which becomes a major factor in the incorrect results in exit polls. In other words, it can be stated that the generalisation of election results in one state to the national level affects the correctness of exit polls. On the other hand, it is also identified that voters may not always be truthful in reporting their votes (Rai, 2021). They might hide their preferences for political parties due to political fears and other factors. These also distort the exit polls in India. Incorrect sampling may yield incorrect exit polls and representatives should be included from every state of India, which is often ignored due to limited time and resources (Bloomberg, 2024). This also affects exit polls in the arena of Indian Lok Sabha elections.

Potential impacts of wrong exit polls on the Indian policy landscape

Incorrect exit polls have several impacts on India’s socio-political arena of India. For instance, incorrect polls can mislead people regarding the likely outcome of an election which influences their voting behaviour (Dawson, 2024). In the context of India, since Lok Sabha elections are held in a phased manner, people cannot make voting decisions as they are influenced by the exit polls conducted across other regions where votes are already done (Deccan Herald, 2024). This may lead to distrust or illusion among people if they notice that exit polls are consistently incorrect. Financial markets also rely largely on the results of exit polls. Hence, any inaccurate result can lead to financial market failure in the short run. As identified by Bajaj (2023), investors may reduce investment if they are not sure about the political future of India which can affect the share market as well. In the context of the 2024 Lok Sabha elections, when the Bhartiya Janata Party (BJP) was expected to get more than 400 seats and form a government with an absolute majority, new investments were made and the share market was showing positive growth (Reuters, 2024). However, the result of the Lok Sabha elections in 2024 was different for BJP. Although it could form the government, it did not enjoy any absolute majority. Rather, it has to depend on other allies to form the government for the next 5 years. As a result, the share market of the country showed a rapid fall posing several threats to the economic growth, employment, and inflation of the country (CNN, 2024). As identified the trust of the investors was somewhat affected as BJP could not win the majority which was quite unbelievable for them as it was expected that BJP would get at least 400 Lok Sabha seats which did not happen (Business Insider, 2024). Exit polls showed inaccuracy, which led to wrong expectations and became a factor that affected the economy of the country to an extent.

The Comparison between Exit Polls Data and Lok Sabha Election Results in India for 2004, 2014, 2019, and 2024

Figure 4.1: Difference Between Exit Polls Results and Final Results in Lok Sabha Elections of 2004

(Source: Chandrasekhar, 2004)

As depicted in Figure 4.1, NDA received 68 fewer seats than what was apprehended based on the exit polls. Congress and its allies received 36 more seats than what was expected based on the exit polls (Chandrasekhar, 2004). Others also received 32 more seats than the speculation made in exit polls in the Lok Sabha election of 2004.

Figure 4.2: Difference Between Exit Polls Results and Final Results in Lok Sabha Elections of 2014

(Source: The Indian Express, 2024)

As Figure 4.2 represents, NDA received 53 more seats than was actually predicted based on the exit polls conducted by various agencies. The Lok Sabha elections of 2014 depicted that UPA received 60 fewer seats in the elections than the anticipated 105 seats in the exit polls (The Indian Express, 2024).

Figure 4.3: Difference Between Exit Polls Results and Final Results in Lok Sabha Elections of 2019

(Source: Times of India, 2024)

The exit polls and the election results of Lok Sabha, 2019 have different results as can be seen from Figure 4.3. Congress was expected to get 132 seats as per the exit polls, but it received only 52 seats (Times of India, 2024). The seats of the BJP were predicted more or less accurately and there was a difference of 3 seats between exit polls and the actual Lok Sabha elections results.

Figure 4.4: Lok Sabha Election Results of 2024

(Source: Ramesh and Rai, 2024)

Figure 4.5: Exit Polls of 2024 Lok Sabha Elections

(Source: India Today, 2024)

If Figure 4.4 and Figure 4.5 are compared, it can be noticed that NDA received 95 fewer seats as was apprehended from the exit polls. It was estimated that Others would only receive 42 seats as per the exit polls (India Today, 2024; Ramesh and Rai, 2024). However, the actual election results show that they got 100 seats in the Lok Sabha elections of 2024.

Conclusion

Based on the entire research report, it can be stated as a conclusion that exit polls yield inaccurate results that do not predict the results of Lok Sabha elections in India properly. Inaccurate data, limited resources, and inaccurate sample selections are some of the reasons causing exit polls to generate results that are not accurate. This has great socio-political policy impacts in India. However, it should be mentioned that exit polls still remain relevant to get an insight into which party can be in power that will determine the future of the country.

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About the author: Ridhima Pahuja is a dedicated and driven student in Grade 12. She is passionate about making a positive impact through her academic and community endeavours. In her free time, she enjoys reading, playing basketball, and engaging in various community service projects, including organizing health camps and running her own start-up, Oleum, which recycles used cooking oil into multipurpose cleaners.  She aspires to pursue an undergraduate degree in business administration to combine her entrepreneurial skills with real-world impact.

Abstract

This research paper explores the role of Public-Private Partnerships (PPPs) in enhancing the quality and reach of education in Haryana, with a particular focus on the Sarva Shiksha Abhiyan (SSA) program of the Indian government. This flagship initiative aimed at universalizing elementary education across India while facing various challenges in implementation, including resource constraints, infrastructure gaps and uneven execution. In response, Haryana state in India has increasingly turned to PPPs as a strategy to address thee gaps and introduce reforms aimed at improving educational outcomes. This study analyzes the effectiveness of PPS in Haryana’s SSA program to examine how these collaborations have contributed to educational infrastructure, teacher training, student enrollment and learning outcomes. This paper identifies the opportunities and challenges in integrating private sector efficiencies into public education systems. The findings offer critical insights into how PPPs can be leveraged to enhance the impact of educational reforms, providing policy recommendations for scaling these initiatives across Haryana and similar regions in India.

Introduction

The foundation of a country’s political, social, and economic structures is its higher education system. A strong higher education system can guarantee a nation’s expansion, advancement, and development. The Indian higher education system is currently plagued by numerous problems.  In Haryana, the GER for secondary education (Classes 9–12) increased from 57.5% in 2011 to 83.3% in 2020; yet, retention rates and educational quality are still below par (Government of India, 2020) Many students encounter difficulties like poor infrastructure, a lack of teachers, and restricted access to modern educational materials, particularly in rural and marginalised communities (Raina, 2018). In addition, the high dropout rate—particularly for females—remains a result of social pressures, concerns about safety, and socioeconomic barriers (Jain & Bedi, 2019). Public-Private Partnerships, or PPPs can be quite beneficial in this situation. Through the combined use of resources and knowledge from the public and private sectors, PPPs can close infrastructure shortages, enhance teacher preparation programs, and implement cutting-edge educational innovations (Elacqua, 2006). Additionally, they can help allocate resources more effectively and guarantee that underprivileged populations receive high-quality education, which will improve student results. This paper will focus on the implementation of education vouchers under Public-Private Partnerships (PPPs) and provide an in-depth analysis of the Sarva Shiksha Abhiyan, evaluating its impact and suggesting improvements to enhance educational access and quality in Haryana.

More than 90% of our population lives within a kilometre of a primary government school (Pratham, 2021). Government schools, which still make up the majority of our educational system, have poor facilities that hinder learning (Vayaliparampil, 2012). Most schools have one or two classrooms, each with a teacher. Concerns about these schools include unsanitary conditions, inadequate sanitation for female students, poor teaching quality, high student-teacher ratios, teacher absenteeism, and poor punctuality. Dropout rates in primary education are high, resulting in a significant waste of public funds aimed at helping the disadvantaged.

Research indicates that the effectiveness of a government budget is largely determined by how it is spent, rather than its quantity. In India, the government’s inability to give targeted support to disadvantaged students contributes to ineffective spending on education. The government has prioritised school funding over individual funding (Gowda, 2020). To address inadequate education and illiteracy, legislative changes are necessary. Simply increasing public spending to 6% of GDP wouldn’t be enough.

This is the exact issue PPPs can solve, collaborations between public and private organisations to provide educational services are known as public-private partnerships, or PPPs. These partnerships use the resources, experience, and efficiency of both sectors to address educational difficulties and improve outcomes. PPPs can take many different forms, ranging from management agreements and joint ventures to the complete privatisation of educational establishments. There are several models of PPPs in the education section and this paper will focus on voucher systems (Raina, 2018). Vouchers provide government funding directly to parents or students, who can use them to choose schools, both public and private. This introduces market competition and choice into the education system. The policy framework modification is based on the notion that parents who want a high-quality education for their children may face financial constraints. As a result, their children continue to struggle in low-quality government schools. Direct government help for children, rather than schools, allows parents to choose their preferred school, whether government, private, or non-government. Education vouchers can be used to shift purchasing power to low-income students, rather than schools.

Public-Private Partnerships (PPPs) in education present both opportunities and obstacles. On the one hand, public-private partnerships can encourage innovation, attract new funds, and potentially enhance efficiency. However, they present issues of regulation, equity, and responsibility. Ensuring proper control and preventing commercial businesses from prioritising profits over educational quality is critical. Furthermore, if not properly conceived and administered, PPPs have the potential to exacerbate existing disparities (Morgan, 2017). Finally, holding both public and private partners accountable for educational outcomes can be challenging, necessitating defined performance measures and accountability systems.

Policy analysis on PPPs

Haryana’s educational system continues to suffer long-standing issues, particularly in rural and poor areas. While literacy rates and enrolment have improved significantly, many public schools continue to be underfunded and face challenges such as poor infrastructure, insufficient learning materials, and limited access to technology. A key concern is a dearth of qualified teachers, particularly in rural areas where multi-grade teaching and inadequate training lead to low student achievement. Furthermore, according to the Annual Status of Education Report (ASER), Haryana has continually suffered with low learning results, with pupils in elementary and secondary school demonstrating poor competency in fundamental reading and arithmetic (Pratham, 2021). These problems are exacerbated by high dropout rates, particularly among girls, owing to socioeconomic factors, cultural barriers, and safety concerns.

The potential of PPPs, particularly in the form of education vouchers, presents a possible answer to these difficulties. Education vouchers, which allow adolescents to attend private schools with government support, can be especially successful in ensuring that students from underserved communities have access to a decent education. According to research, voucher systems can boost competition among schools, resulting in higher teaching quality and better learning outcomes. PPPs can help to bridge budget, infrastructure, and expertise gaps while also boosting accountability and efficiency in the education system. Expanding voucher programs in Haryana could help lower dropout rates, improve school facilities, and provide better learning environments, especially in rural areas where public schools struggle the most.

The success of existing voucher systems proves their value as a solution to enhancing education India. Education vouchers have been introduced in several countries, including Chile, Colombia, Sweden, the Netherlands, New Zealand, Poland, the Czech Republic, Bangladesh, Canada, the US, and the UK. There have been both successes and partial failures. Vouchers, valued at less than 100% of the cost per student, have proven effective in reducing the public monopoly on education in Sweden, Poland, and Milwaukee (US), resulting in efficiency advantages; the findings of the voucher system in Milwaukee, Chile and Colombia are explained how they relate to the potential impact of vouchers in India (Kumari, 2016).

The Milwaukee program aimed to address high dropout rates, low academic performance, and unequal educational opportunities based on income. It specifically targeted low-income families, a demographic that also faces significant educational disadvantages in India. The evaluation of the program found that it successfully benefited the poorest households, suggesting vouchers could potentially address similar socioeconomic disparities in India. Furthermore, contrary to concerns about segregation, the Milwaukee program fostered diversity rather than exacerbating divisions based on race, merit, or other factors. This finding is particularly relevant to India, given its diverse social fabric and the potential for voucher programs to either bridge or widen existing social gaps. Lastly, the Milwaukee experience highlights the importance of careful program design and implementation. The initial program faced restrictions, including a limited scope (covering only 1.5% of school-aged children) and a requirement for participating private schools to cap vouchered students at 49% of their total enrollment. These limitations, driven by political opposition, underscore the potential challenges of implementing large-scale voucher programs, even in contexts where there is a demonstrated need (Witte et al, 2021).The introduction of vouchers in Chile in 1980 led to a substantial increase in the number of students attending private schools. This suggests that vouchers can significantly impact parental choice and shift enrollment patterns, potentially signaling a preference for private institutions. This is particularly relevant to India, where a large private school system already exists and might see increased demand if vouchers were implemented. Additionally, the Chilean government’s decision to allow private vouchered schools to charge tuition fees, while simultaneously prohibiting public schools from doing so, created a price advantage for public schools. This highlights a crucial consideration for India: the design of a voucher system, particularly the balance of funding between public and private schools, could inadvertently create distortions in the education market. Lastly, the Chilean experience underscores that the implementation of a voucher system necessitates continuous monitoring and adjustment to address unforeseen consequences and ensure its alignment with policy goals (Elacqua, 2006).

Colombia introduced vouchers to tackle a lack of seats in public secondary schools, particularly impacting low-income areas and hindering enrollment. This resonates with India’s challenge of ensuring equitable access to quality education, especially in underserved communities. In addition to this, the Colombian program successfully increased secondary school enrollment. This suggests that vouchers could potentially address access issues in India by providing students with financial resources to attend schools they might not otherwise afford. Additionally, the influx of students into private schools, even commercially oriented ones, indicates that vouchers can alter school choice dynamics, potentially creating a more competitive education landscape. While the program led to improved educational outcomes, with public and voucher-funded private schools converging in quality, they remained below non-voucher private schools (Ram and Irfan, 2018). This suggests that simply providing vouchers might not be sufficient to achieve substantial quality improvements across the board. India should consider this finding and explore complementary measures to ensure that voucher-funded schools meet desired quality standards.

Direct support for students can increase their quality and motivate public schools to improve (based on international experience). To begin, the program can be implemented in metropolitan or semi-urban areas with a sufficient number of private and public schools. The voucher plan allows children attending government schools to choose between private and government schools. The voucher plan can be expanded to remote areas by encouraging private schools to open there.

Reforms to the Sarva Shiksha Abhiyan

The Sarva Shiksha Abhiyan (SSA), established by the Indian government in 2001, aims to universalise elementary education. It concentrates on delivering free and compulsory education to children aged six to fourteen, in accordance with the 86th Constitutional Amendment. SSA has played a critical role in improving school enrolment and infrastructure development, particularly in rural areas, hence closing the educational access gap and overcoming socioeconomic constraints.

Since its launch in 2001, the Sarva Shiksha Abhiyan (SSA) has led to a significant increase in school enrollment, particularly at the primary level. The Net Enrollment Ratio (NER) rose from 73.99% in 2003-04 to an impressive 98.59% by 2008-09 (Vayaliparampil, 2012). A key factor in this success is SSA’s focus on reaching disadvantaged populations, including Muslims, scheduled castes (SC), scheduled tribes (ST), and girls. Targeted interventions such as the Midday Meal Scheme and the Stipend for Girls have been instrumental in reducing disparities in educational access among these groups. Additionally, SSA operates as a collaborative effort between the central government, state governments, international NGOs, and local NGOs. While this partnership model presents challenges, it enables the program to address the diverse and region-specific educational needs across India more effectively.

Despite its successes, the government of India has admitted to Sarva Shiksha Abhiyan (SSA) experiencing considerable obstacles in increasing secondary school enrolment. Families occasionally lose money when their children seek secondary education, and concerns about the quality of government secondary schools in comparison to private schools, as well as fears about girls’ safety and well-being, further impede enrolment (Vijayalakshmi, 2013). While the SSA prioritises inputs like infrastructure, teacher training, and school supplies, critics contend that it does not focus enough attention on learning results and overall educational quality. Within the SSA framework, there is an increasing need to emphasise students’ actual learning experiences and achievements. Furthermore, the 25% free seat provision in the Right to Education (RTE) Act raises worries about the government’s growing reliance on the private sector to provide education. This could disincentivize improvements in government schools, leading to potential neglect while financially benefiting private schools, even those of questionable quality, if not carefully managed.

By incorporating this endeavor into SSA, it tackles one of the program’s fundamental gaps: differences in educational quality and access. PAHAL’s voucher system promotes competition among schools, requiring both public and private institutions to improve their facilities, teaching quality, and learning outcomes. Furthermore, it provides targeted assistance to some of society’s most disadvantaged groups, ensuring that children from marginalized backgrounds not only have access to education, but are empowered to obtain quality education. This integration can also help lower dropout rates, particularly among girls and disadvantaged groups, by giving families more discretion over where their children attend school, addressing concerns about safety, cultural obstacles, and economical pressures (Datta, 2009).

To improve the effectiveness of SSA and overcome its current shortcomings, implementing an education voucher scheme similar to the PAHAL proposal could provide families greater control over their educational choices. Education vouchers function by providing government-funded subsidies directly to families, allowing them to select the schools that best fit their children’s requirements, public or private. “PAHAL” is being implemented in three districts in Uttarakhand. The initiative targets rag pickers, scavengers, and beggars between the ages of 6 and 14 (Saluja, 2023). Evaluations show that children engaged in this plan perform on par with or outperform others in mathematics and languages.

By incorporating school vouchers into the SSA’s existing framework, India can solve significant challenges such as infrastructure problems, teacher shortages, and low educational performance, particularly in neglected areas such as rural Haryana. Drawing on international case studies such as those from Chile, Colombia, and Milwaukee, India may create a voucher system that promotes innovation and efficiency while minimising inequality. Implementing education vouchers as a supplement to SSA would not only increase universal access to education, but would also improve the system’s quality and equity, bringing us closer to the objective of providing a robust and inclusive education for everyone.

This dual approach of reforming the SSA and introducing PPPs through education vouchers offers a comprehensive path forward to address India’s educational challenges at scale, ensuring that both public and private sectors contribute to a stronger, more equitable educational landscape.

References

• ASER Centre. Annual Status of Education Report (Rural) 2020. Pratham, 2021.
• Datta, Amrita. “Public-private partnerships in India: a case for reform?.” Economic and political Weekly (2009): 73-78.
• Elacqua, Gregory. “Education Reform in Chile: A Never-Ending Process.” Center for Global Development, 2006.
• Gowda, Sheetal. Public-private partnerships in education: a vertical case study of the Right to Education Act (2009), India. University of Massachusetts Boston, 2020.
• Jain, Rashmi, and Kiran Bedi. “The Persistent Problem of Dropouts: Social Pressures and Education in India.” Education and Society, vol. 9, no. 3, 2019, pp. 100-112.
• Kumari, Jayanti. “Public–private partnerships in education: An analysis with special reference to Indian school education system.” International Journal of Educational Development 47 (2016): 47-53.
• Ministry of Education, Government of India. Educational Statistics at a Glance: 2020. Department of Higher Education, Government of India, 2020.
• Morgan, Clara. “Public private partnerships and corporate social responsibility: Needs for and impacts on education in India and Indonesia.” Corporate Social Responsibility and the Three Sectors in Asia: How Conscious Engagement Can Benefit Civil Society (2017): 199-224.
• Ram, S. Ashwin, and Zareena Begum Irfan. “A State Level Analysis of the Social Infrastructure: Public Private Partnership in Education and Health.” Asian Journal of Education and Social Studies 3, no. 2 (2018): 1-28.
• Saluja, A. (2023). Public–Private Partnerships in EdTech for Transforming Rural India: How Start-Ups are Shaping the Post-COVID Landscape. In INDIA’S TECHNOLOGY-LED DEVELOPMENT: Managing Transitions to a Digital Future (pp. 105-119).
• “Sarva Shiksha Abhiyan (SSA) – The Flagship Program for Achieving Universalization of Elementary Education” (Ministry of Education, India).
• Raina, Vinod. “Challenges in Indian Education: Infrastructure and Quality Gaps.” Journal of Educational Research and Development, vol. 12, no. 2, 2018, pp. 45-56.
• Vayaliparampil, Mary Chandy. Stakeholder Perceptions of the Sarva Shiksha Abhiyan Effectiveness in Increasing School Enrollment in India. 2012. PhD dissertation, Pennsylvania State University.
• Vijayalakshmi, C. “Prospects and strategies of public private partnership in higher education in India.” International Journal of Applied Research & Studies 2, no. 3 (2013): 1-8.
• Witte, John, et al. “Milwaukee Parental Choice Program.” Journal of Policy Analysis and Management, vol. 40, no. 4, 2021, pp. 1012-1036. onlinelibrary.wiley.com/doi/full/10.1002/pam.22369.

About the author: Rajas Patil is a hardworking and passionate student who is interested in geopolitics and public policy. Growing up in the midst of many different cultures and countries instilled in him a sense of global consciousness and adaptability. He is currently in the 11^th grade at the Stonehill International School in Bangalore. In the future, he wishes to pursue his undergraduate studies at the intersection between science and policy.

Abstract

This research paper examines the potential of telemedicine services in addressing healthcare disparities in rural India, where access to quality medical care remains a persistent challenge due to geographical barriers, resource limitations and shortage of healthcare professionals. By utilizing digital platforms to provide remote consultations, diagnostic services and treatment, telemedicine offers a transformative solution to bridge the urban-rural divide. This paper critically examines the current state of telemedicine in rural India, focusing on adoption and scalability. Through a comprehensive literature review, it assesses how telemedicine services have enhanced health outcomes in underserved communities. It also explores the technical, regulatory and infrastructural barriers that limit the expansion of telemedicine. By analyzing implementation cases, this paper provides recommendations for policymakers to optimize telemedicine frameworks to ensure equitable, accessible quality healthcare in rural India. The findings underscore telemedicine’s potential as a vital component of healthcare reforms in India, offering a sustainable path towards achieving universal healthcare coverage in India’s most remote regions.

Introduction

Karnataka, a culturally rich state located in the south of India, is one of the largest and most economically vibrant in the country. Karnataka has grown tremendously in recent years in all aspects; however, healthcare among the rural poor, while improved, has long been a pressing challenge, especially compared to urban areas within the state. Rural regions struggle with a myriad of issues like limited resources, inadequate facilities, and a shortage of healthcare professionals. Remote medical services, also known as telemedicine or e-health, are a scalable way to reduce the difference between health care services in rural and urban areas (Galagali, Ghosh & Bhargav, 2021). These services allow patients to consult with doctors without having to travel.

The healthcare landscape within both Karnataka and India is very polarised, with urban centres like Bengaluru equipped with state-of-the-art centres while rural areas struggle with basic facilities. This problem is not just prevalent in Karnataka but across the country; a report by the United Nations found that 75% of healthcare resources are within urban areas, where only 27% of India’s population lives (Datta, Singh & Mishra, 2023). This leaves the already poorer segment of the population with subpar healthcare, strengthening the poverty trap and divide.

According to the 2011 Census, 62% of Karnataka’s 65 million population live in rural areas. Good public health is essential; it is a fundamental human right and a part of the UN sustainable development goals. Aside from social justice, addressing the issues will lead to the betterment of society, as it allows more and healthier people to contribute to society. If 60% of the population is able to work or live in a more rapid and efficient manner, then the economic benefit would be tremendous, only leading to overall development and allowing the rural poor to break free from the cycle of poverty and illness.

Current Landscape of Healthcare in India

Karnataka follows a 3-tier public health infrastructure system for the rural, primary, secondary, and tertiary. At the primary level, the state has Primary Health Centres (PHCs) and Sub-Centres (SCs). At the secondary level, there are district hospitals (DH), sub-divisional hospitals (SDHs), and community health centres (CHCs), and at the tertiary level, there are medical colleges and specialised hospitals (Agarwal, Jain, Pathak, & Gupta, 2020). The current state of healthcare in Karnataka has both pros and cons; the positives are often overlooked and there have been efforts made by the government to improve healthcare in rural areas through initiatives such as the National Rural Health Mission (NRHM) and eSanjeevani.

The issues are multifaceted, involving social, geographic, and economic factors. One of the most pressing issues is the inadequate healthcare infrastructure. Medical centres need a variety of different equipment, like beds and needles, etc., not to mention the medicines themselves. Furthermore, there are already nearly 2844 government hospitals across the state. However, Karnataka is massive, spanning 190,000 square kilometres, with settlements in every corner (Dash, Aarthy & Mohan, 2021). For this reason, it becomes very hard to build centres near every village, ensuring equal access. Simply building centres is not the end of the story; these centres must also all be provided with quality equipment and staff and be maintained for years to come.

A 100-bed government hospital in Molakalmuru in Karnataka’s Chitradurga district recently gained media attention for its severe electricity issues after a heavy spell of rain forced doctors to treat patients under torchlight (Agarwal et al, 2020). This type of situation is fairly common and represents the state of many health centres. In addition to the lack of equipment, many health centres, especially in rural areas, suffer from poor physical infrastructure. The buildings are often old and dilapidated, as well as far too small to cope with the patients and equipment. Close to one-third of DHs, two-third of SDHs, and half of the CHCs and PHCs rank poor or average (Verma, Krishnan & Verma, 2021). This shows inadequacy in every aspect of human resources, infrastructure, and services.

The term healthcare infrastructure is an encompassing term for the facilities and services that benefit a population’s health. The term can be understood as not only physical buildings and equipment but also the distribution and availability of quality healthcare professionals (Malhotra, Ramachandran, Chauhan, Soni & Garg, 2020). The shortage of trained healthcare professionals is another critical issue that plagues rural areas in particular. In 2023, the high court of Karnataka initiated a public interest litigation (PIL) on the matter of the shortage of medical staff. The vacant job positions are not only large in number but are varied, where the scarcity encompasses a wide range of roles, highlighting the extensive nature of the issue.

Rural regions are often characterised by tough geography that exacerbates the existing problem of equal healthcare, like the expansive Western Ghats range covering the vast majority of the state’s west coast. These hilly wet regions have poor transportation networks, which make it difficult to both build and service facilities. This forces households to travel far for healthcare, coming at a great personal and financial cost. Many people don’t have health insurance to help with the cost either. 68% of Indians have inadequate health insurance coverage, with 27% having less than ₹5 lakh in coverage (Bakshi & Tandon, 2022).

There are other non-infrastructure-related barriers present as well; social and cultural factors further “complicate” the landscape. 50.6% of Indians do not trust doctors. For centuries, traditional ayurvedic and traditional healers have been the norm, an estimated 400,000 traditional healers practice medicine in India, making up 57% of rural medical care (Verma et al, 2023). Modern healthcare is seen as an alien, unreliable entity, leading many to reject modern medicine despite the opportunity.

Previous policies

Other telemedicine services already exist in India and are probably better as of now, Practo and 1mg; however, the key difference is that these services require money to be spent, shutting off the majority of telemedicine demographic. Similar services have also been implemented in China, a country in a similar position historically to India. China’s largest telemedicine platform, with 373 million registered users has helped the vast ageing population, especially in the west of the country, to access quality healthcare with relatively short wait times in a non-disruptive manner (Stoltzfus et al, 2023). China has a completely different socioeconomic landscape from Karnataka and India, but they have proven that telemedicine is an extremely promising initiative and has the potential to solve the issues of traditional healthcare methods in Karnataka.

Over the past years, Karnataka has introduced a range of new policies and programs aimed at enhancing healthcare access in rural areas. These initiatives are part of a broader national and state effort to meet the healthcare needs of rural communities (Singh et al, 2022). Although such policies and initiatives have achieved some level of success, challenges continue to persist, especially in effective implementation and sustainability.

One of the key initiatives at the national level, aimed at providing health services to rural areas, is the eSanjeevani scheme. Launched in 2019 under the Ayushman Bharat Digital Health Mission (ABDM), the scheme has been very effective in Karnataka, as it has efficiently adopted and implemented it. The eSanjeevani scheme operates in two main models; the first, eSanjeevani Ayushman Bharat and Health and Wellness Centres (AB-HWCs), aims to bridge the rural and urban healthcare divide by giving teleconsultations completely free of charge (Maroju et al, 2023). These (AB-HWCs) are smaller clinics in rural areas acting as the first point of contact. The model is set up through a hub and spoke model, where the HWCs are the spokes, which lead to the hub comprising more well-trained healthcare professionals at a zonal level (Singh & Dev, 2021). Patients can receive basic health care, and those who require specialised advice can do so easily. According to the Ministry of Health and Family Welfare, this model throughout India has been implemented in 1,09,748 AB-HWCs and 14,188 Hubs, totalling 71,158,968 teleconsultations (2022).

Improving all aspects of healthcare infrastructure across the entire state is costly and impractical for now; hence, this online approach has been so successful. These large numbers are possible due to this online nature, reducing burden on physical infrastructure and overworked professionals.

Policy Recommendations

Addressing the aforementioned challenges through telemedicine is paramount to fostering a conducive environment for growth and development. To overcome these barriers, Karnataka and India as a whole must adopt new effective strategies to improve health care from a telemedicine angle, specifically.

Due to the nature of healthcare within Karnataka, telemedicine is the only sustainable and scalable method to offer healthcare to rural areas. The eSanjeevani scheme has no doubt been effective in its implementation; however, an underlying problem prevents the initiative from reaching its full potential. A study in 2023 about telemedicine awareness and preferred digital healthcare tools conducted a survey in a village in rural Karnataka. Only 2.2% of the participants actually knew about the eSanjeevani scheme, and none of them actually utilised its services in the past year. Furthermore, only 56% of the participants said they would be willing to use the services. 82.5% said that the reason for the unwillingness was a lack of familiarity (Venkataraman et al, 2024).

The masses, especially in rural areas, must be made aware of these great facilities that are available through public awareness campaigns. Posters and billboards are common methods of doing so. But advertisements on TV and social media are the most efficient way. Close to 60% of India’s population has access to the internet, but this number is rising exponentially, especially in rural areas. 82% of Indians engage with TV advertisements (D’Souza et al, 2021). Creating advertisements that educate communities about the benefits of the eSanjeevani initiative and how to access it is a sure way to quickly increase awareness. As these campaigns are a reflection of the government, they should be made regarding local culture and sensitivities; for example, the advertisements in Karnataka should be in Kannada.

Telemedicine services exist, but there is a shortage of doctors who actually attend eSanjeevani regularly. The demand is simply too much for the current status quo, meaning that the supply has to increase. Working long hours online is not favourable to workers so there must be incentives given for these postings. However, monetary compensation at this large scale is not feasible, as the government cannot redirect enough capital. A very practical and efficient strategy is utilising medical students and recent graduates, either voluntarily or by conscription (Gupta, 2023). This not only addresses the shortage but also gives experience to future healthcare workers. This resource-constrained environment is very different from what most students are trained in, developing clinical and problem-solving skills necessary for the profession. Most telemedicine consultations are elementary in nature and do not require a deep understanding, and an early exposure to the reality of rural healthcare can create a sense of responsibility and motivate the students to help the country (Nagaraja et al, 2024).

Across 2018 to 2012, an average of 780,000 students passed the National Eligibility cum Entrance Test (NEET) for admission in undergraduate medical programs. However, there are only 80,000 government, private institutions, and medical college seats. Other factors, like the price of education and reservations, limit the seats for many (Delana et al, 2023). The government has almost doubled the number of undergraduate medical seats, yet the disparity still remains large. This mismatch is ironic considering the shortage of doctors, especially in the government sector. The data shows there is fierce competition between students, so those who participate in the scheme would be offered credits or other career advancement opportunities. This advantage would attract masses of students to volunteer for telemedicine roles, all trying to gain an edge.

Increased awareness and labour will be futile unless eSanjeevani’s services themselves are not very efficient and helpful. A large concern is that there are long waiting lists. A team of Metrolife reporters surveyed people in Karnataka; one patient was on a waiting list; after 10 minutes, the patient gave up. The following day, she logged in with a new token number and waited for 10 more minutes, and a doctor was assigned, but he couldn’t hear properly so he placed the patient on hold again and she went back to the waiting list. This sort of situation is fairly common (Gupta, 2023). However, the contribution of students in theory should reduce this problem by increasing the supply to meet demand. More doctors would reduce the workload on each doctor, so eSanjeevani could provide more detailed, efficient healthcare, leading to easier follow-up consultations and lower waiting times.

The actual meetings between patients and doctors are negatively impacted due to connectivity issues. India’s network coverage has improved exponentially in recent years. India has more than 820 million active internet users now, of whom more than half come from rural parts of the country. However, internet penetration in rural India is only around 41%, where it is often unreliable and slow (Sageena, Sharma & Kapur, 2021). This causes the teleconsultation to be slow and laggy, wasting the patients and doctors time and potentially blocking lifesaving advice. Developing network coverage is crucial to pulling 61% of the rural population out of digital darkness, opening up not just better telemedicine but a plethora of opportunities.

Conclusions

The lack of quality widespread healthcare is one of the greatest challenges that Karnataka and India as a whole face, particularly prevalent in rural areas. Efficiently implementing telemedicine through the eSanjeevani initiative would overcome tough geographic, infrastructural, and systemic issues. By expanding digital infrastructure, training more healthcare workers, and raising awareness about telemedicine services, leading to a more developed and happy nation. The successful implementation and adoption of telemedicine in Karnataka will serve as an example to the rest of the country. Based on the socioeconomic status quo of a particular region, approaches can be tailor-made to suit best. Continued investment and collaboration between the government and rural areas will eventually provide all with the healthcare they deserve. Better health and reduced sickness will develop living standards, boost the economy, and propel India to better days.

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About the author: Ruveer Vohra is a Grade 12 student of Vasant Valley School in Delhi, India. He is passionate about wildlife conservation and has conducted extensive research about India’s tiger reserves. Inspired by this work, he has written research on India’s wildlife policies to advocate for stronger protection provisions and sustainable conservation strategies. He aspires to pursue Economics and Political Science at the undergraduate level to develop a deeper understanding of how economic models can be applied to promote environmental sustainability and development.

Abstract

India is home to a wide variety of flora and fauna due to its different ecosystems, which span from the snow-covered Himalayas to the tropical rainforests of the Western Ghats. India’s exceptional biodiversity places it among the world’s 17 megadiverse nations. However, human activities like deforestation, habitat fragmentation, poaching, and illegal wildlife trade have put this rich natural legacy under growing jeopardy. Realising the need of conserving its wildlife, India passed the landmark Indian Wildlife (Protection) Act in 1972 to save both the nation’s species and its habitats. This paper explores the current wildlife policy in India in terms of several challenges and gaps that need to be addressed to ensure effective conservation and protection of the country’s biodiversity. This research analyses existing wildlife policy, identify the key issues and gaps, and proposes areas of improvement. 

Introduction

India is a nation rich in biodiversity due to its rich historical legacy and abundance of rare and indigenous natural resources. Illegal trade and exploitation of natural resources continues to be a great concern and India faces a significant challenge in protecting and conserving its wildlife. This goal cannot be accomplished until and unless all government agencies, local residents living in and around the protected regions, law enforcement officers, non-profit and nongovernmental organisations, and the general public collaborate to achieve it (Niraj, Krausman & Dayal, 2012). Therefore, it is imperative that everyone preserve this abundant resource and keep the environment in balance.

Despite the country’s rigorous legal provisions for the very purpose of wildlife protection and conservation being provided by the laws pertaining to the protection of wildlife and their natural habitat, it is observed that the actual situation on the ground is different. This research identified weak enforcement and implementation of the Wildlife Protection Act as a major concern (Soni, 2020). Even the use of hazardous materials in industry, daily human activity, building and road construction, leisure, and entertainment activities has a negative impact on the environment, which in turn has an impact on wildlife and their natural habitat.

An important turning point in India’s history of wildlife conservation was the passage of the Indian Wildlife (Protection) Act in 1972. Before the legislation was passed, state-specific regulations that varied widely in their implementation oversaw wildlife conservation in India (Karanth et al, 2008). With the passage of the 1972 Act, a complete legislative framework for the conservation of wildlife nationwide was established for the first time.

The Wildlife (Protection) Act, 1972 (53 of 1972), provides the legal framework for the protection of various species of wild animals, management of their habitat and also for the regulation and control of trade in the products derived from various parts of wild animals (Karanth, Gupta & Vanamamalai, 2018). The Act was introduced at a period when animal population in India were rapidly declining because of widespread hunting and habitat destruction. Due to the threat of extinction facing the Bengal tiger in particular, Project Tiger, a significant conservation effort run under the Wildlife (Protection) Act, was started in 1973. The Act therefore established the groundwork for the nation’s conservation initiatives and has played a significant role in the recovery of a number of species over time, including the Asiatic lion and the Indian rhinoceros (Maikhuri et al, 2001).

Important Provisions of the Indian Wildlife Act

The Wildlife Protection Act is a landmark piece of legislation in India’s environmental and conservation history. The act shifted the focus from exploitation of wildlife resources to conservation and protection. Firstly,the Act banned the hunting of most wild animals, with specific species listed under various Schedules of the Act. Schedule I and II species, which include some of India’s most iconic and endangered animals like the Bengal tiger, Asian elephant, and Indian rhinoceros, were afforded the highest level of protection (Hundal, 2004). A famous case where this was applied was when famous Bollywood actor, Salman Khan, was sentenced to 5 years in prison for hunting a black buck, The actor was charged with Section 9/51 of the Wildlife Protection Act.

Secondly, it established protected areas by creatingnational parks, wildlife sanctuaries, and biosphere reserves. These areas were designated to serve as safe havens for wildlife, where human activities were either strictly regulated or prohibited altogether. The Act also imposed strict regulations on the trade of wildlife products, including skins, trophies, and other derivatives. The commercial exploitation of wildlife was curtailed, with penalties for violations designed to deter illegal trade (Singh et al, 2023). It mandated the establishment of Wildlife Advisory Boards at both the central and state levels. These bodies were tasked with advising governments on the implementation of the Act and the management of protected areas.

Furthermore, the Act prescribed penalties for various offenses, including hunting, poaching, and the illegal trade of wildlife. These penalties included fines and imprisonment, with the severity of the punishment depending on the species involved and the nature of the offense. It led to the creation of various bodies and authorities for wildlife protection and management at both central and state levels (Padmakumar & Shanthakumar, 2023). This act has also been instrumental in shaping India’s wildlife conservation efforts and has been amended several times to strengthen its provisions.

Additionally, the Amendment Act of 1991 increased the effectiveness of the nearly complete ban on hunting. The amendment was a significant step toward increasing the deterrence against wildlife crimes by introducing stricter penalties. This change was driven by the rising tide of poaching and illegal trade in wildlife and their derivatives, which had become a serious threat to species like tigers, elephants, and rhinoceroses (Menon & Borah, 2024). The amendment introduced harsher punishments, including longer prison terms and heavier fines, for offenses related to the hunting and illegal trade of wildlife (Rana & Kumar, 2023). An amendment resulted in the insertion of the special chapters dealing with the protection of specified plants and the regulation of zoos. This also recognized the needs of tribal and forest dwellers and changes were introduced to advance their welfare.

Continuing in this vein, widespread changes were made by the Wildlife (Protection) Amendment Act, 2002 and a new chapter has been incorporated to deal with the forfeiture of property derived from illegal hunting and trade. This amendment also introduced the concept of co-operative management through conservation reserve management committee and community reserve committees. It also saw the creation of the National Board for Wildlife, chaired by the Prime Minister, which was intended to provide high-level oversight and coordination of wildlife conservation efforts across the country. Additionally, the amendment introduced the concept of community reserves, recognizing the role of local communities in wildlife conservation (Alam & Nayak, 2024). However, the practical implementation of these community reserves has been inconsistent, with many communities lacking the resources and support needed to manage these areas effectively.

India is also a party to five major international conventions related to wildlife conservation: CITES, International Union for Conservation of Nature and Natural Resources (IUCN), International Whaling Commission (IWC), United Nations Educational, Scientific & Cultural Organization World Heritage Committee (UNESCO-WHC) and the Convention on Migratory Species (CMS).

The 2013 amendment was a response to India’s commitments under various international conventions, particularly the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). This amendment sought to align the Act with international standards on the regulation of wildlife trade. It introduced provisions for the regulation of trade in endangered species and their products, tightening controls on the import and export of species listed under CITES (Milda et al, 2023).

The main purpose was to strengthen the enforcement of wildlife protection laws in response to an increase in wildlife crime. The amendment outlined increasing the penalty for wildlife offences; banning the use of animal traps except in specific situations; requiring permits for scientific research; granting exemptions for specific activities, such as livestock grazing and movement; and preserving the Scheduled Tribes’ right to hunt in the Union territory of the Andaman and Nicobar Islands. Despite these progressive provisions, the amendment has faced criticism for its limited impact on the ground. In many cases, the involvement of communities in conservation decision-making has remained superficial, with significant power imbalances between local communities and government authorities.

Challenges in the Existing Policy Landscape

Although India’s wildlife policy has a robust framework, it faces several significant challenges and gaps that undermine its effectiveness. Despite the numerous amendments and the overall strengthening of the Indian Wildlife (Protection) Act of 1972, several policy gaps continue to hinder its effectiveness in addressing the contemporary challenges of wildlife conservation. These gaps reflect both the evolving nature of threats to wildlife and the complexities of implementing conservation laws in a rapidly developing country like India (Verma & Kumar Yadav, 2024).

Although the Wildlife Protection Act, Customs Act, and Import-Export policies in India contain provisions governing the conservation measures and trade of wildlife species, particularly the endangered species, the illicit hunting, poaching, and trade of these species continues unabated, and their exploitative practices continue. It was the involvement of the Central Bureau of Investigation (CBI), India’s main investigative agency, that found that there were no tigers after a 2-month investigation. The CBI concluded that forest officials were undoubtedly involved. Since then tigers have been reintroduced into the Sarika Tiger Reserve (Kuttappa & Bhat, 2023). While some human settlements have been relocated however villages continue to exist inside the protected area.

As human settlements encroach on wildlife habitats, incidents of conflict increase. This not only endangers wildlife but also results in loss of human life and property, leading to negative perceptions of conservation efforts among local communities. In regions where wildlife attacks are prevalent, such incidents have profound socio-economic implications, particularly for rural communities dependent on agriculture and livestock rearing. Crop raids by elephants, predation on livestock by big cats, and attacks on humans can lead to economic losses, exacerbate poverty, leading to resentment towards wildlife conservation efforts.

The Act’s approach to community involvement in conservation remains limited and often superficial. While the 2002 and 2013 amendments introduced the concept of community reserves and sought to involve local communities in the management of protected areas, these initiatives have not been consistently implemented (Dey, Goswami, Sharma & Sarma, 2024). In many cases, local communities are either excluded from decision-making processes or their participation is tokenistic, without real influence over conservation policies. This lack of meaningful involvement is problematic, especially in regions where indigenous and local communities have a deep ecological knowledge and a vested interest in the sustainable management of natural resources. The Act needs to be reformed to genuinely empower these communities, giving them a more significant role in conservation efforts while ensuring that their rights and livelihoods are respected.

It has also been observed that the Act’s penalty and penalties for violations are insufficient to prevent and regulate the exploitation of wildlife. Offenders can still escape punishment by paying penalties, and individuals who are defending themselves in court are similarly unaffected by the very sluggish resolution of cases in Indian courts (Alam & Nayak, 2024). The reason behind it also explains the thousands of cases that are backlogged in District Courts and other courts. As a result, it takes the courts almost ten years to reach a decision in these kinds of cases, during which time the perpetrators prosper in their business and the poaching of wildlife carries on.

Furthermore, one of the most significant shortcomings of the Act is its inadequate focus on habitat conservation. While the Act provides for the establishment of protected areas, it does not sufficiently address the broader landscape-level conservation required to maintain ecological connectivity (Gupta et al, 2023). Many species, particularly large mammals like tigers and elephants, require vast tracts of interconnected habitats to survive. The fragmentation of these habitats due to infrastructure development, agriculture, and urban expansion has severely impacted wildlife populations.

Another issue is that there is insufficient training or funding for the Forest Departments and Forest Officers, which prevents them from carrying out their duties as law enforcers and facilitators of conservation efforts. It is evident that the legal framework in India pertaining to the preservation and safeguarding of fauna is intricate. The rules offer forest officers the ability to safeguard the forest’s resources, but they also deny them the authority to enact policies about the matter, which makes it more difficult to seize stolen animals or fallen timber (Sunder, 1995). This has contributed to the rise in exploitation even more. However, the forest officers themselves participate in the exploitation practices due to corruption and self-interest. Even though the locals in the area can genuinely assist in preventing exploitation and safeguarding the wildlife resources, it has been observed that the forest officials have never included the locals in their efforts to stop the exploitation of wildlife.

In addition, the Wildlife (Protection) Act has also struggled to keep pace with advancements in conservation science. Modern conservation strategies emphasize the importance of data-driven decision-making, which involves the use of Geographic Information Systems (GIS), remote sensing, and genetic studies to monitor wildlife populations and habitats. However, the Act does not mandate the use of these technologies, and their adoption by wildlife authorities has been inconsistent. There is a need to integrate these scientific tools into the legal framework of the Act, ensuring that conservation policies are informed by the latest research and technology. This would not only improve the effectiveness of wildlife management but also help in identifying and addressing emerging threats more rapidly.

Finally, the Act does not adequately address the growing threat of climate change, which is increasingly impacting wildlife and their habitats. Changes in temperature and precipitation patterns are altering ecosystems, affecting species distribution, and exacerbating issues like habitat loss and human-wildlife conflict (Manhas & Meena, 2024). The Act’s current provisions do not sufficiently account for these climate-related challenges, which are likely to become more severe in the coming decades.

Policy Recommendations

Inadequate enforcement of laws protecting wildlife is one of the main issues, which is frequently made worse by ineffective government. Enforcement agencies’ ability to properly enforce these laws is frequently limited by shortages of funding, manpower, and political support. These efforts are further impacted by corruption and a lack of accountability, which permits illicit operations like poaching and habitat damage to continue (Rodgers, 1989). To tackle these problems, more funding must be allotted, and the number of personnel working on wildlife enforcement must be increased. Furthermore, improving enforcement staff training and capacity-building programs can greatly increase their efficacy. To make sure that policies are being carried out correctly, it is also essential to strengthen the procedures for interagency cooperation and intelligence sharing and to put in place strong monitoring and evaluation systems. Using technology to monitor communities and encourage more accountability and openness can lead to better governance (Choudhury et al, 2023). Examples of this technology include drones and camera traps.

The forest service and other government employees assigned to the reserves and protected areas need to be made aware of protecting and conserving wildlife. Training and research on wildlife conservation strategies and the legal protections available for their preservation should be given to these interested personnel. It is imperative to engage the local population residing in the vicinity of the protected areas by raising their awareness of the significance of wildlife conservation and protection, as well as the applicable legal frameworks that govern it (Gupta et al, 2023). It is important to inform the local population about all the legal provisions that are in place to preserve and protect wildlife and endangered species. They should also be aware of the consequences and repercussions for breaking any laws and endangering the wildlife. This will contribute to a greater level of awareness among the local population, which will further aid in supporting government officials and forest officials operating in these protected regions.

Non-Governmental Organisations (NGOs) also could contribute significantly to the conservation and protection of wildlife. The Wildlife Protection Society of India is one such group that strives to save the environment by supplying data and assistance to government authorities involved in wildlife conservation and protection (Niraj, Krausman & Dayal, 2012). This is done to combat the illegal wildlife trade and poaching of wild animals. The protection of India’s wildlife resources will be greatly aided by the cooperation of such NGOs. Additional strategies for safeguarding and preserving animals include breeding, bolstering the resilience of natural reserves, and establishing and overseeing biosphere reserves.

Enhancing natural reserves’ resilience is required which includes preserving natural reserves, establishing buffer zones, reducing human activities like building, road, and transportation construction, minimising wildlife tourism, minimising habitat fragmentation, discussing genetic diversity, and safeguarding biodiversity “hot spots” to prevent extinction and save threatened species (Milda et al, 2023). For landscapes to be as resilient as possible, buffer zones must be created around them. Buffer zone protected areas also need rehabilitation, with an emphasis on mitigating particular climate change impacts. Certain ecosystems possess intact landscapes and may possess adequate resilience; nonetheless, the way in which the inhabitants of these areas utilise land and water must be regulated to avoid the loss of resilience.

Public-private partnerships (PPPs) have the potential to significantly address the funding challenges in wildlife conservation by leveraging the strengths of both sectors. One of the key ways PPPs can contribute is by leveraging private sector investments. Companies with an interest in sustainable resource use or those committed to corporate social responsibility (CSR) initiatives can provide crucial financial resources and technical expertise for conservation projects (Menon & Borah, 2024). Through PPPs, these private sector funds can be directed towards essential activities like habitat restoration, anti-poaching measures, and community-based conservation initiatives, helping to bridge the gap left by limited public funding.

Another important contribution of PPPs is the development of innovative financing mechanisms. These partnerships can help create revenue streams that are both sustainable and reliable, reducing dependence on government budgets. For example, PPPs can facilitate the implementation of ecotourism revenue-sharing models, biodiversity offsets, and conservation trust funds (Kalra, 2023). These mechanisms ensure that conservation efforts are financially supported over the long term, even as public funds remain constrained.

PPPs also bring valuable expertise and resources to the table. The private sector often possesses specialized skills and technologies that can enhance wildlife monitoring, habitat management, and community engagement efforts. When public agencies collaborate with private partners, they can achieve more efficient and effective conservation outcomes. This collaboration not only improves the implementation of conservation strategies but also allows for the sharing of best practices and innovative solutions (Sekhar, 2003). For instance, Sony India supported the conservation of red pandas and snow leopards in Arunachal Pradesh and tiger conservation through documentation and dissemination. Apart from supporting commercially, Sony provided technical equipment and know-how such as cameras, lenses, projectors and related products for creating the films and raising awareness (Rana & Kumar, 2023).

Moreover, successful PPP models in wildlife conservation can be scaled and replicated across different regions and habitats, amplifying their impact. The involvement of private sector partners helps in expanding effective conservation approaches, creating a multiplier effect that benefits broader ecosystems (Maikhuri et al, 2001). Additionally, PPPs can improve stakeholder engagement by bringing together various actors, including local communities, NGOs, and government agencies. This collaborative approach enhances transparency and accountability in the use of conservation funds, ensuring that resources are utilized effectively. Finally, PPPs offer sustainability and long-term commitment, which are crucial for the success of conservation initiatives. Unlike public funding, which can be subject to political and economic fluctuations, PPPs provide stability and continuity. Private partners can commit to ongoing financial and operational support, contributing to the overall sustainability of conservation programs.

Conclusion

The policy gaps in the Indian Wildlife (Protection) Act of 1972 underscore the need for a more holistic approach to wildlife conservation. While the Act has been instrumental in protecting many of India’s iconic species, its limitations highlight the challenges of implementing effective conservation policies in a rapidly changing world. Addressing gaps will require not only legal reforms but also a stronger commitment to enforcement, community involvement, and the integration of modern conservation science. In a situation when various wildlife species are threatened and many are on the point of extinction, the government must act in accordance with the current needs and desires. It is necessary for the federal government and state governments to collaborate and execute all applicable laws and conservation strategies to protect the wildlife and prevent illegal hunting and trade of these endangered species and wildlife as a whole.

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About the author: Vivaan is a student in Grade 12 at The International School Bangalore. He is passionate about business, economics and biology. He aspires to become an entrepreneur and create ventures fields of healthcare and sustainability. 

Abstract

This paper examines the complex relationship between foreign remittances and money laundering practices in India. With India being one of the largest recipients of remittances globally, the influx of foreign funds plays a critical role in the nation’s economy. However, the remittance system also presents vulnerabilities for exploitation by illicit actors involved in money laundering. This study explores the mechanisms through which foreign remittances are used to facilitate money laundering, highlighting key risks associated with informal and unregulated channels. It further analyses the effectiveness of India’s existing regulatory frameworks, including the Prevention of Money Laundering Act (AML) efforts while investigating policies that ensure legitimate remittances continue to contribute positively to the economy.

Introduction

The Indian diaspora is a global dispersion of people of Indian origin, active in various fields, involved in connecting different cultures, and contributing economically and culturally worldwide. Individuals of Indian origin have made substantial contributions to the economies of both their host nations and India. In the context of this paper, worker’s or migrant’s remittances refer to the money that is earned by individuals working in foreign countries, which is sent back to their home country, usually to support their families or for personal savings (Bartlett, 2002). These transfers play a significant role in the development of economies, providing a stable source of income which increases with continued emigration to other countries.

India has long been one of the world’s largest recipients of foreign remittances, with millions of its citizens working abroad and sending substantial financial contributions back to their families (Mugo, 2015). These remittances form a critical part of India’s economy, significantly bolstering household income, alleviating poverty and fostering local development. In 2021 alone, India received over $87 billion in remittances, underscoring the importance of these inflows in supporting domestic consumption and sustaining economic growth (Chintamani, 2017). Remittances from the Indian diaspora serve as a critical part of India’s economic development by providing financial support to families and contributing to the nation’s foreign exchange reserves. Additionally, the diaspora’s presence in sectors like technology, finance, and academics, has driven innovation and economic development in various host countries (Jayasekara, 2023).

Remittance inflows to India have been increasing constantly since the 1990’s to have reached a sum of $125 billion in 2023, a 12.3% growth from the previous year 2022, which brought about $111.2 billion in remittances (Hendriyetty & Grewal, 2017). The predicted outcomes for growth in 2024 suggest that the remittance inflows to India and other Low- or Middle-Income countries (LMIC’s), may soften further to 3.1% based on a trajectory of weaker global economic activity. However, some studies show that the growth of remittances to India will dampen to 8%, which would lead to an increase of remittance inflows by 8% as compared to 3.1%, to $135 billion for the fiscal year 2024 (McCusker, 2005). Moreover, projections of a compound annual growth rate (CAGR) of 11.9% in the inbound market from 2023 to 2028 suggest that the sum of remittance inflows to India for the year 2028 may reach an amount of USD $195.3 billion (Kashyap, 2021). By balancing notions of economic development with security concerns, this research provides a comprehensive view of the policy challenges and potential solutions in safeguarding India’s financial integrity.

Impact of Remittances on India

Alongside significant economic benefits, foreign remittances also pose considerable regulatory challenges. The vast movement of funds across borders creates opportunities for illicit financial activities like money laundering. In India, both formal and informal channels of remittance such as banks, money transfer services and the widely utilized hawala system present varied vulnerabilities that can be exploited by criminal actors to launder proceeds from illegal activities (Bowers, 2008). The misuse of these remittance systems threatens the integrity of India’s financial system and also compromises the efficacy of efforts to combat corruption and terrorism financing.

Remittances can be transferred through formal and informal channels. The network of cross-border remittance transfer entities in India mainly constitutes formal funds transfer entities like banks, money transfer operators (MTOs) and other non-bank entities. Other informal agents include Hawala dealers, returning migrants and trading and transportation companies (Khan & Siddiqui, 2021). As per the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA), ‘hawala’ transactions are an illegal means of remittance transfer to India. This is because the Reserve Bank of India (RBI) does not recognize transactions carried out by unauthorized persons under the RBI (Kumar, 2015). Informal channels of remittance transfer, however, are mostly legal though discouraged due to the lack of transparency involved in these transactions (Shehu, 2004).

Within India, bank and non-bank entities permitted to undertake cross-border remittance transfers are commercial banks called authorized dealers (ADs), public-owned financial institutions, post offices, and exchange bureaus. Money Transfer Operators (MTOs) are companies that provide remittance services with the help of a wide network of agents, ATMs, and electronic transfer channels. Money transfer operators in India are regulated by money transfer service schemes, which are designed especially for the transfer of low-value remittances to the country for family maintenance purposes. They tend to use online formats for remittance transfer like direct transfers to bank accounts or debit/credit card-based transfers (Kundu, 2019). The most used method of financial transfers to India is the use of electronic wire transfers, which are conducted by third party operators like banks and other wire transfer service providers. Another popular means of transfer is the use of bank cheques, which is sent through mail to the recipient in India and can later be cashed in with the bank.

Formal methods of remittance transfer may pose inconveniences that motivate individuals to resort to informal means that are less transparent and do not reflect on official inflow reports. These problems are the lack of time efficiency and high transaction fees imposed on the transfer of remittances. Informal channels, which are generally perceived as efficient in terms of cost, time and documentary requirements, are thus an attractive alternative to formal means.

A misuse of remittance inflows, namely the lack of expenditure of the received remittances on activities that may promote economic growth in the short or long term, can lead to a vicious circle which negatively impacts the country’s economy. This happens when citizens tend to spend their remittances on luxuries and demerit goods instead of education and healthcare (Ahmed, Mughal & Martínez‐Zarzoso, 2021).  Additionally, the vicious circle as a byproduct of workers’ quitting jobs due to high remittance inflows, which leads to higher wages, leading to upward pressures on prices, which decreases the price competitiveness of goods exported by the country, leading to a depreciation in the currency, and higher remittances coming in, which further leads to workers’ quitting employment positions (Maimbo, 2004). This forms an unending circle which devastates an economy.

Money transfers are so common in the remittance system that transactions may carry risks such as money laundering or even terrorist financing. Digital money transfers provide various criminal opportunities and thus, these must be carefully monitored to prevent illegal activities. The development of fast and convenient new services to transfer remittances provides even higher risk, and institutions like the Financial Action Task Force (FATF) and The Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) have been established to enforce Anti-Money Laundering compliance in the remittance system (Thouez, 2005). Suspicious transactions may be monitored through algorithms which highlight abnormal transactions and methods like Know Your Customer (KYC), which verifies the user’s identity.

Current Landscape and Policy Recommendations

Effective public policies implemented to regulate and control remittance inflows should aim to simplify regulations and procedures for easier remittance transfer, drive down transaction fees, increase financial literacy to promote effective use of remittances, help support economic development in the long term and address the misuse of remittances and illegal acts like money laundering. Policies implemented to regulate remittance inflows to India aim to make the market for remittances more transparent, secure, accessible and popular. For instance, the Liberalized Remittance Scheme (LRS) allows all resident individuals, including minors, to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both. Despite its potential, there’s been an overdependence on this scheme, which has overshadowed minor channels, allowing room for misuse.

However, remittances for trading in foreign exchange abroad, remittances to countries identified by the FATF as ‘non-cooperative countries and territories’, remittances to individuals and entities identified as posing risk of committing acts of terrorism, and remittances for purposes specifically prohibited under Schedule-I (like the purchase of lottery tickets/ sweepstakes, proscribed magazines, etc.) and any other items are restricted as per Schedule-II. The overdependence on this scheme, means that other policies in use are overshadowed by this scheme. Moreover, the lack of enforcement and vigilance can result in loopholes like the approval of remittance transfers which may be misused by the recipient for a variety of activities. This leads to a debate on possible solutions which can be implemented to eliminate problems and unethical use of this policy.

The Reserve Bank of India’s Real Time Gross Settlement (RTGS) provides instant and secure remittances. But its reach is compromised due to a lack of rural penetration. It can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction-by-transaction basis. It is a safe and secure system for funds transfer (Anima, Nath & Dalia, 2023). Additionally, the receiving branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The receiving bank must credit the beneficiary’s account within 30 minutes of receiving the funds transfer message. This makes the RTGS one of the fastest ways of transferring remittances into India. However, accessibility in rural areas is an issue with this method of remittance transfer due to lack of facilities and banking institutions coupled with uneducated populations in these areas (McCusker, 2005). 

Another payment service is the Aadhaar Enabled Payment System (AEPS) which allows a bank customer to use Aadhaar as his/her identity to access his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash withdrawal, and remittances. Linking Aadhaar IDs with bank accounts enables secure and efficient domestic fund transfers, facilitating remittance transactions in rural areas. This makes the remittance transfer process more accessible in small rural areas which have decreased access to banking services and electronic systems, eliminating the problems associated with RTGS. Other policies may include skill development programs which equip Indian workers abroad with relevant skills, potentially increasing wages and remittances sent back home.

While remittances substantially help the Indian economy, contributing to foreign exchange reserves and income, they may also cause problems. They may accidentally allow issues in remittance flows, which can lead to economic imbalances. More importantly, the presence of informal channels poses some significant risks, including money laundering and financing of unethical, illegal activities like terrorism. These channels evade the formal banking system, complicating the enforcement of regulatory policies and undermining the effectiveness of these policies designed to manage remittance inflows.

To regulate the impact of foreign remittances on money laundering in India, a combination of policy interventions and regulatory measures can help mitigate risks while ensuring remittance flows remain beneficial to the economy (Hendriyetty & Grewal, 2017). To fix issues arising from the current remittance landscape in India, smart solutions are essential. For this purpose, strengthening coordination between financial regulators and law enforcement is a crucial step in effectively regulating the impact of foreign remittances on money laundering in India (Siddiqui, 2004). Such coordination allows for better intelligence sharing, streamlined enforcement actions, and a more unified response to complex financial crimes.

Financial regulators such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and Financial Intelligence Unit-India (FIU-IND) collect valuable data on financial transactions, suspicious activities, and compliance violations (Khan & Siddiqui, 2021). When regulators and law enforcement pool their resources, they can create detailed profiles of individuals or entities involved in suspicious remittance transactions. This improves the ability to track the flow of illicit funds and investigate criminal networks linked to money laundering. By sharing this data in real-time with law enforcement agencies like the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), patterns of illegal remittance activities can be detected earlier (Shah, 2023).

Coordinated efforts between financial regulators and law enforcement allow for more effective monitoring of high-risk remittance corridors (such as those between India and countries with high diaspora populations like the UAE and Saudi Arabia). Financial regulators can conduct targeted audits of money transfer operators and financial institutions based on intelligence provided by law enforcement agencies, thereby uncovering illegal remittance channels and money laundering operations (Bartlett, 2002). Through coordinated actions, both regulators and law enforcement can stay ahead of new tactics used by money launderers. For example, if law enforcement identifies a new money laundering technique involving cryptocurrencies, regulators can quickly issue guidelines to financial institutions and remittance providers to tighten their controls.

Additionally, incentivizing the usage of formal channels for remittances by offering reduced transaction fees or tax benefits may encourage migrants to stay away from informal transfer methods. Informal channels like hawala are popular partly because they offer lower transaction fees than formal financial institutions (Trautsolt & Johnsøn, 2012). By reducing the cost of sending money through formal channels—such as banks, licensed money transfer operators (MTOs), or digital wallets—the government can make these options more attractive (Passas, 2015).  This eliminates one of the primary reasons people turn to informal methods, which typically have minimal to no upfront fees. Offering government subsidies or discounts on transaction fees for formal remittance transfers would further reduce the cost gap between formal and informal methods (Singh & Hari, 2011). For instance, if remittances are processed at a flat rate or reduced percentage fee, senders would be less inclined to use hawala, which could also charge hidden costs or lead to financial risks.

Conclusion

This research paper investigated the intersection of foreign remittances and money laundering practices in India. It examined the channels through which remittances flow, the risks associated with informal mechanisms, and the loopholes in current regulatory frameworks that allow money laundering to thrive. This study aimed to provide a comprehensive analysis of India’s policy responses to this issue and offered recommendations on how to enhance anti-money laundering efforts (AML) while maintaining the positive economic contributions of foreign remittances. Addressing this dual challenge is vital for ensuring both the security of India’s financial system and the continued socio-economic benefits that remittances bring to millions of Indian households.

References

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About the author: Nandini is a passionate young woman who finds an interesting balance in academia between Mathematics, Economics, Literature and Public Policy. Currently, she is enrolled in the 11^th grade at DPS International Edge Gurgaon. In the future, she hopes to pursue Economics, specializing in microeconomics and finance.

Abstract

This research paper explores the intricate relationship between data privacy and the monetization of user attention by tech platforms in India. With the rapid proliferation of digital technologies and social media among Indians, tech companies have increasingly monetized user engagement through targeted advertising, raising significant concerns about data privacy. This study investigates the regulatory frameworks, industry practices and user awareness in India to assess the implications of these monetization strategies on individual privacy rights. It explores potential policy interventions to mitigate privacy risks while balancing the economic benefits digital platforms, contributing to the ongoing discourse on safeguarding personal data in an era where attention has become a valuable commodity.

Introduction 

In most of mankind’s economic history, the biggest scarcity consumers ever faced was productive and arable land. This included the fight for agrarian land, land for real estate and land for production of goods. It was the diamond in the rough for all consumers. However, with the industrial revolution (and even more so the digital and AI revolution), there is one big thing that consumers are now scarce on: knowledge (Baecker et al, 2020). Now that the standard of living has grown and people have become richer, there is one very important question that arises: what should one do with monetary wealth?

This is where marketing and the attention economy comes into play. On a tangent from its original purpose of helping consumers allocate their resources, advertising has now become a way of falsely hyperbolizing the need or overselling an average product with false promises. With so much product differentiation and online marketing, consumers try to overcome asymmetry of information in the economy to find the best toothpaste, laptop, pen or house in the market (Croxson et al, 2022). Recently experts have criticized advertising as nurturing a culture of perpetual distraction and a world of passive consumers that mindlessly scroll on their phones for hours on end. It is how many digital platforms are making their billions.

For almost every social media platform, the one way that they can hold onto their consumers to increase the marginal utility from every scroll and swipe is through personalization. One’s viewing history is tracked for the purpose of showing tailored content, and technology has been engineered to make individuals addicted to content. Not to serve the best interests of individuals or even to keep society entertained, but to increase the inventory of advertising space a company can sell. Whether it is the ads on Instagram or the “For You” page on TikTok, it all boils down to the same thing: an economy now thrives that focuses on stealing the attention of individuals based on what the platforms know they already like (Wiener, Saunders, & Marabelli, 2020). In the attention economy, where information is abundant and easily accessible, capturing and retaining users’ attention has become a valuable commodity for firms. As digital media has become increasingly consumed in society, our attention spans have become much shorter. As a result, attention itself has become a scarce resource leading to much more aggressive forms of internet marketing for firms to hold it and monetize it.

This research article aims to discuss the intricacies of how these platforms gather, store, and leverage user data for purposes such as targeted advertising and content personalization in tandem with user awareness – or lack thereof – and consent mechanisms. It is important to gauge the level of awareness among users as well as the security measures implemented by digital platforms and the policies implemented by different governments to attain privacy and anonymity in the digital world.

The Problem

Advertising is one of the most important and primary sources of revenue. Advertisers pay for the opportunity to capture users’ attention and promote their products or services. The more attention a platform can attract, the more valuable it becomes to advertisers, leading to increased advertising revenue. Some platforms also adopt subscription-based models where users pay for premium content or services.  But the most valuable piece of information firms can get is attention data, including user preferences, behaviors and engagement patterns to provide targeted advertising (Baragde et al, 2017). There have been many such scandals with reputed companies like Facebook, Amazon and Google, who were sued on multiple occasions for tracking what people view online and where they browse.

Initially, traditional models relied on transactional exchanges, emphasizing the sale of goods or services. However, contemporary digital platforms have transitioned to attention-centric models, where user engagement is the primary currency (Hanafizadeh et al, 2021). Transactional models derived revenue from direct sales from brick-and-mortar stores or local monopolies that divided society based on their economic roles. However, this line of economic roles in society has blurred and consumer engagement, marked by the number of likes and views, matter more than direct forms of payment or cash (Jabłoński & Jabłoński, 2020).

The attention-centric monetization model used by tech platforms raises several significant policy problems, especially in the context of data privacy, ethical considerations and social impact. Along with sensational news being shared, in the stride to make social media personalized and addictive, there is also illegal sharing of data that is a breach of consumer privacy. In May 2023, The European Data Protection Board (EDPB) slapped Meta Platforms Ireland Limited (Meta IE) with a 1.2 billion euro fine following the EDPB binding dispute resolution decision of 13 April 2023 (Najjar & Kettinger, 2013). The fine, the largest in GDPR history, stems from an inquiry into Meta’s Facebook service and its systematic, repetitive, and continuous transfers of massive volumes of personal data to the U.S. using standard contractual clauses since 16 July 2020. There are innumerable such cases, all of which have one goal: increase individuals’ time spent on their apps (Ahlemeyer-Stubbe et al, 2018).

Just like business models and economies work, to have a successful business is to have a good or service that requires people to keep purchasing it. Social media is just that. Technology conglomerates, some of the most financially potent entities globally, have granted them unprecedented influence over the operations of both national and global economies. Being endowed with extensive datasets and artificial intelligence, these corporations possess the ability to identify and neutralize emerging competitive challenges, solidifying their dominance and impeding innovation and individual welfare (Lange, Drews, & Höft, 2021). Furthermore, these entities wield substantial authority over civic involvement and political dialogue, exemplified by the recent acquisition of Twitter by Elon Musk. Making people slaves to their phones, an increased screen time on social media platforms can trigger impulse control problems as the constant alerts and notifications affect concentration and focus, disturb sleep and more.

The lopsided negotiating leverage of digital platforms often results in inadequate compensation for content developers, necessitating governmental intervention. This was underscored by the Australian-Facebook dispute over equitable payment for content creators and influencers (Naimi & Westreich, 2014). The erosion of individuals’ control over their personal data has profound implications for the human psyche, contributing to a pervasive sense of information overload. Current market valuations of data create a competitive race to capture individuals’ attention at the lowest conceivable cost. This approach compromises user experience and prioritizes prolonged platform usage over individual well-being. In pursuit of profit maximization, algorithms are engineered to enhance engagement by amplifying the virality of content, often leading to the promotion of highly provocative, contentious, or polarizing material to drive user interactions (Parvinen P et al 2020). This heightened exposure to misleading or false information poses a significant threat to informed decision-making, fostering addiction and desensitization to marginalized communities.

Problems arise due to the algorithmic amplification of sensationalized or polarized content which often skews user attention towards themes, impacting the discoverability of diverse and valuable information. Beyond this it links back to the problem of inefficiency in firms which can have economic ramifications by influencing consumer choices and market trends (Vila Seoane, 2021). The algorithms that drive attention-centric monetization are often proprietary and opaque, making it difficult for users, regulators, and even the platforms themselves to fully understand how content is prioritized or how ads are targeted. This lack of transparency complicates efforts to regulate these practices effectively.

Privacy infringements compromise individuals’ sensitive information and erode trust in online platforms. Users find themselves unknowingly becoming targets of data exploitation more and more as companies prioritize maximizing time spent on their apps over safeguarding user privacy (Shukla, Bisht, Tiwari & Bashir, 2023). The alarming frequency of such cases underscores the urgent need for robust regulations and vigilant oversight to protect individuals from unwarranted data exploitation and preserve the fundamental right to privacy in the digital age.

One of the primary policy issues is the adequacy of user consent mechanisms. Many users are unaware of the extent to which their data is collected, processed, and used to target them with advertisements. Often, the terms of service and privacy policies are lengthy, complex and difficult to understand, leading to questions about whether the consent of individuals signing onto these agreements can truly be considered informed (Van’t Spijker, 2014). Tech platforms also engage in extensive data harvesting practices to build detailed user profiles. The collection of vast amounts of personal data, often without explicit consent raises concerns about privacy violations and the potential misuse of data.

Policy Recommendations

The impact of digital platforms and their consistent use can negatively impact the wellbeing of individuals. Policy interventions are crucial to mitigate the potential harm, ensuring a balance between technological innovation and safeguarding mental health. Striking this balance requires a thoughtful approach that addresses the impact of digital platforms on individuals’ well-being within broader societal frameworks (Ofulue & Benyoucef, 2024).

India’s policy framework around data privacy and attention-centric advertising on tech platforms is evolving rapidly, driven by the increasing digitalization of its economy and the growing concerns over user privacy. One type of solution to mitigate threats of data privacy are known as Privacy-Enhancing Technologies or PETs: tools and techniques that limit access to personal data and control its use like encryption, anonymization, and access controls. For now, they are used in relevance to sensitive data like in healthcare sectors to protect patient data like in Netherlands or as user consent forms before using third-party tools to track user behavior for advertising purposes in Germany (The Dutch Data Protection Authority, AP) and France (The French Data Protection Authority, CNIL). However, these forms of PETs such as AI-generated synthetic data, a versatile privacy solution, enabling anonymization by creating statistically identical but diverse datasets, allowing processes like data augmentation and representative imputation while preventing re-identification, making it unsuitable for cases requiring such identification can also be used for digital platforms to ensure digital privacy.

Another example of public policies created to ensure data privacy is by The EU which has been exploring the Digital Services Act (DSA) and the Digital Markets Act (DMA) to obtain anonymity with users. The DMA, establishes rules for large online platforms and aims to create a level playing field, ensuring fair market practices, ushering in new standards for digital commerce (Jabłoński & Jabłoński, 2020). A key component of the Digital Services Package, DSA focuses on transparency, user safety, and accountability for online platforms. It sets standards for digital consumer businesses, ensuring a safer and fairer digital space across the European Union.

The Personal Data Protection Bill (PDPB), 2019 which has evolved into the Digital Personal Data Protection Act, 2023 represents India’s most comprehensive attempt to regulate data privacy. The Act outlines principles for data processing, including lawful, fair, and transparent handling of personal data (Shukla, George, Tiwari & Kureethara, 2022). It mandates that data collection must be purpose-specific and that data subjects have the right to access, correct and erase their data. It mandates that data collection must be purpose-specific and that data subjects have the right to access, correct or erase their data.

The Act also introduces the concept of data fiduciaries, requiring companies that collect and process data to be accountable for protecting user privacy. It also introduces significant penalties for data breaches and non-compliance. According to the Digital Personal Data Protection (DPDP) Act, businesses in India acting as data fiduciaries may face penalties of up to INR 250 crore for each occurrence of a data breach. Furthermore, in the case of major breaches, a maximum penalty of INR 500 crore is stipulated by the Act (Najjar & Kettinger, 2013). It incentivizes business to ensure that they are not taking part in data acquisition through illegal means.

Additionally, the rules of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 impose additional responsibilities on social media platforms and other intermediaries to ensure compliance with Indian laws. They include provisions for grievance redressal mechanisms, content takedown requests and increased transparency in content moderation (Paunksnis, 2023). The rules require intermediaries to enable the identification of the first originator of information on platforms, which has raised concerns regarding user anonymity and privacy.

Practical deployment of these policy frameworks often faces hurdles in India, such as compatibility issues, integration complexities, and the need for standardized protocols. Industries relying heavily on data monetization may also resist the adoption of stringent privacy measures due to potential revenue implications. Understanding these dynamics is essential for developing strategies that align business interests with privacy goals. Resistance could manifest in lobbying efforts, legal challenges, or circumvention strategies (Naimi & Westreich, 2014). Examining these challenges is crucial for the effective adoption of privacy-focused solutions. Striking this equilibrium involves overcoming technical obstacles in implementing security protocols without compromising the seamless and user-friendly aspects of digital interactions.

Conclusion

Since the attention economy is new compared to other, more established sectors of society, like agrarian or manufacturing, it is imperative that we understand how to ethically gain traction without manifesting large-scale mental health ailments, distraction and overall economic inefficiency in society. Technology must be used as a boon to society, and it is up to governments to ensure that the balance between economic gains of firms and consumer’s mental wellbeing is at a point of equilibrium.

In tandem with governments and policymakers, other industry stakeholders like business firms must have a set of rules on how they can advertise and make use of behavioral economics and the human psyche to improve profits. At the end of the day, humans are irrational consumers, and make rash decisions without understanding the entirety of it all. They can either be educated so as not to be susceptible to the constant scroll in the attention economy, or they can spend hours listlessly on the Internet. It is up to not just governments and firms to implement policies based on ethical behavior, but consumers as well.

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