The Earnings and Conversion Gaps for Persons with Disabilities: Evidence from India

We evaluate the earnings and conversion disadvantages that persons with disabilities face in India, which has amongst the highest number of persons with disabilities globally. Our study is unique in that we use two major nationally representative household surveys consisting of over 85 thousand households, alongside a qualitative study to explore the nature and the magnitude of these disadvantages. We find that persons with disabilities and the households they live in experience lower earnings (earnings gap) and incur higher costs of translating those earnings into living standards (conversion gap). Because of such costs, persons with disabilities and the households to which they belong are likely to be at disproportionately higher risk of being poor. These disadvantages vary across gender, by rural-urban residence and by severity of disability and considerably exceed government contributions to the well-being of people with disabilities.

Monthly Economic Review: September 2024

In the Review, we summarise the economic and policy developments in India; monitor global developments of relevance to India; and showcase the pulse of the economy through an analysis of high-frequency indicators and the heat map.

MER September Report

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India Human Development Survey: September 2024

The IHDS Forum is a monthly update of socio-economic developments in India by the IHDS research community, based on the India Human Development Survey, jointly conducted by NCAER and the University of Maryland. While two earlier rounds of the survey were completed in 2004-05 and 2011-12, respectively. Fieldwork for the third round was undertaken in 2022-24 and the data is currently being cleaned and processed.

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Spatial mapping key to spur renewable power in Odisha

Odisha must conduct deep-down power system analysis

Among the Indian states, energy intensity of Odisha economy has always been on the higher side due to her higher resource (mineral) base. The proximity of minerals has led to development of extraction based industries in the state.

The abundance of coal resources has fuelled development of coal power in the states both for domestic consumption as well as for exports to other states. Expectedly, the location of energy intensive industries and coal power imply that per capita emission in Odisha would be higher than the national average.

Though the state has taken significant steps to facilitate a transition towards renewable energy and fight climate change, it appears to be moving slowly in formulating a clear decarbonization roadmap. Among the India states, only a handful of states have clearly underlined the target they have set for achieving net-zero emission.

Among the Indian states, Odisha is the first state to get its second phase of climate action plan approved from the National Steering Committee on Climate Change (NSCCC) under the Ministry of Environment, Forests and Climate Change (MoEFCC), Government of India.

The Government of Odisha has roped in Council on Energy, Environment and Water (CEEW) to prepare a roadmap for achieving net-zero carbon emission in line with the country’s decarbonisation plan.

Odisha’s Renewable policy envisions to establish a robust framework that can enable Odisha to undertake an inclusive journey towards energy transition through higher adoption of renewable energy (RE) in their power system.

However, Odisha’s power sector like that of India operates on an interconnected grid system. Coordinated efforts and grid integration between states are crucial for optimizing renewable energy generation and ensuring reliable and stable power supply.

At first, in order to ensure the uninterrupted supply of electricity it is necessary to promptly address issues linked to power system losses and malfunctions of the existing grids. Further, to facilitate the integration of renewable energy resources it is necessary to solve the issues with high energy consumption and demand. In terms of socio-economic factor, states with a higher population or energy-intensive industries may require tailored strategies to manage the energy transition while ensuring social equity and economic growth.

To adopt a low carbon pathway in energy sector, a state has to consider a variety of factors, such as energy accessibility, local energy sources, infrastructure, legal frameworks, and socioeconomic conditions. The problem is more challenging for a mining rich state like Odisha States with a higher concentration of energy-intensive industries. Hence, it is essential that to have deep down planning with power system analysis for optimal operation and inclusion of RE technologies in grid.

Over the years, Nordic countries with high penetration of renewable energy in the grid have opted for spatial mapping of available RE resources along with transmission and distribution network and mapping of demand to adopt a low carbon transition pathway with increased share of renewable energy.

However, this approach namely spatial mapping is yet to take root in the Indian context even though renewable power is expected to play a bigger share in the coming years.

It is important that Odisha undertakes in-depth power system analysis while going forward in a big way for renewable power development in the state.

The analysis of distribution networks and local level power systems would help the power sector in the following way: cost effective pathways to reduce GHG with optimal operation, management and planning of electricity networks, aassessment of transmission infra structure, storage capacity requirement for higher utilization of RE and analysing the technical impacts of the grid due to the high volume of RE integration, assessment of local demand for designing microgrid system, and further linking decentralized power generation, accessibility of the real time data through locational coordinates, coupling of electricity to other energy sectors, such as gas, heating and transport, and investment & system planning for a stable secures networks through assessment of job potential, enhanced per capita power consumption and income generation.

There is no alternative but to go for spatial mapping of power system in the state if Odisha intend to increase her share of renewable power in the electricity sector. Sustainable Development Goal (SDG) 7 calls for ensuring access to affordable, reliable, sustainable and modern energy for all. All these measures will help Odisha to achieve SDG 7.

Prof. Sanjib is with NCAER, New Delhi and Pradeep is Bhubaneswar-based Economist, Views are personal.

Household illiteracy: The silent epidemic extracting a heavy human cost

Persistent regional disparities in household illiteracy is hampering India’s quest for inclusive development.

Household illiteracy in India: The fight against illiteracy has long been a priority for policymakers in India. Education, often hailed as the cornerstone of progress and empowerment, remains central to India’s vision of inclusive growth and development. However, despite significant strides, the battle against illiteracy continues to pose formidable challenges.

India’s quest for inclusive development is overshadowed by persistent pockets of illiteracy. Despite concerted efforts by the government, non-governmental organisations, and various stakeholders, the problem of illiteracy persists, depriving millions of households of the transformative power of education. As India aims to eliminate this issue and achieve 100% literacy by 2030, it is imperative to assess the situation accurately.

Household illiteracy in India

Illiteracy perpetuates cycles of poverty, inequality, and social marginalisation, depriving individuals of the opportunity to break free from this vicious cycle. While individual illiteracy in the country has been extensively analysed, we chose to examine a grimmer phenomenon—household illiteracy. A household is considered illiterate if none of its members can read or write in any Indian language. Alarmingly, India is home to a staggering 17.2 million such households, with rural India accounting for approximately 81.8% of the total illiterate households.

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In contrast, only 18% of urban households face this challenge, highlighting the persistent gap in educational access between urban ‘India’ and rural ‘Bharat.’ Additionally, a higher percentage of households among Scheduled Tribes (10%) are illiterate compared to other groups. Scheduled Castes (8%) also face significant illiteracy rates, while illiteracy is relatively lower among Other Backward Classes (6%) and the General category (4%). These figures underscore that, despite affirmative action to dismantle caste barriers, many households remain trapped in poverty and deprivation.

Household illiteracy is not a problem unique to India; it is a global challenge that affects millions of families across developing and underdeveloped nations. According to UNESCO, more than 773 million adults worldwide still lack basic literacy skills, with a significant number concentrated in sub-Saharan Africa, South Asia, and parts of the Middle East. These regions face similar structural barriers to education, such as poverty, gender inequality, conflict, and inadequate infrastructure. Addressing household illiteracy on a global scale is crucial for realizing the United Nations’ Sustainable Development Goal of quality education for all by 2030, as literacy is the foundation upon which broader social and economic progress is built.

Low-performing states and regions

India, a union of states with diverse socio-economic landscapes, faces an illiteracy problem that transcends the conventional north-south divide. Uttar Pradesh leads with 2.3 million illiterate households, closely followed by Andhra Pradesh at 2.1 million. Other states with over 1 million illiterate households include Tamil Nadu, Bihar, West Bengal, and Maharashtra. Meanwhile, smaller states like Nagaland, Sikkim, Goa, Manipur, and Arunachal Pradesh appear to have achieved universal household literacy.

However, focusing solely on absolute numbers can be misleading. In terms of the proportion of illiterate households relative to the total population, Andhra Pradesh leads with 15%, followed by Telangana with 11%. Tamil Nadu, Delhi, and Bihar each have approximately 8% of such households. Each region in India has its own unique challenges and opportunities, and addressing illiteracy will require identifying and focusing on low-performing regions.

Of the 88 NSS regions, 10 have more than 10% illiterate households, a concerning statistic. Coastal Andhra and inland Eastern Telangana have the highest proportion, with 17% of households being illiterate. Coastal northern Andhra has 15%, while southern Rajasthan and southern Odisha each have 13%. To achieve universal literacy, India must resolve socio-economic disparities between regions and provide the necessary infrastructure to support literacy.

Illiteracy undermines democracy and nation-building. Ensuring widespread access to education and eliminating illiteracy are essential steps toward creating a more inclusive society in India. Tackling this challenge requires a comprehensive approach to address structural barriers and systemic inequalities. Investments in education infrastructure, teacher training, and curriculum development are crucial.

The New India Literacy Programme, which aims to reach 50 million illiterate individuals aged 15 and above by 2027 through the use of technology and volunteerism to access remote areas, is a positive step. Additionally, the National Education Policy (NEP) 2020, with its five pillars—foundational literacy and numeracy, critical life skills, vocational skills development, basic education, and continuing education—has the potential to break down literacy barriers and empower millions of households to lead more fulfilling lives.

Dhruv Pratap Singh is a research analyst, and Jyoti Thakur associate fellow at NCAER, New Delhi. Views are personal.

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