Policy Watch: Food & water crisis ahead
Arctic Blue Waters brings up to date news on the continued water crisis in India researched from the dna news.
India’s rising affluence and water profligacy could trigger a food crisis very soon.
At first blush, there is a lot to be cheerful about. India’s index of industrial production has resumed its climb. Stalled projects are being dusted and revived. There is a good chance that employment figures, too, will begin rising by the end of the next quarter.
Then there is more good news. Per capital GDP (Gross Domestic Product) on the price purchase parity (PPP) basis is likely to continue climbing to touch $8,165 by 2022. It grew by 88% during the 2000-2011 period, from $2,600 in 2000, to $4,883. The coming decade could see it soar by another 67% (see chart). Moreover, the country’s granaries are full and overflowing. The rains were not as bad as were feared earlier. Consequently, India could see a decent harvest this year as well.
Further, with increasing affluence, total calorie consumption too has swelled (see chart). As economists often point out, when salary levels are low, much of income goes towards food. Extremely poor families spend as much as 80% of their income on food (India’s average spending on food is around 45%). However, as incomes rise, the percentage on food spends begins declining. People are now in a position to fulfil other needs as well. Additionally, while earlier people focussed on how much they ate, higher incomes make people consider carefully what they would like to eat. The plate begins to add more nutrition.
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Posted on 18th November 2014 .