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Economy

Omicron, economy and budget deficits

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Omicron economy budget deficits

Dr BinishQadri

The World Health Organization on November 26, 2021, labelled variant B.1.1.529 a variant of great alarm, named Omicron, on the advice of WHO’s Technical Advisory on Virus Evolution (TAG-VE). Extensive evidence was presented to this advisory that Omicron has several mutations affecting its behaviour.

Research is coming up at different levels to get hold of different aspects of Omicron in a better way.  There is much ambiguity about whether there is more transmission in Omicron as compared to other variants, including the Delta variant. South Africa has seen the number of people testing positive increasing as a result of this variant. Many epidemiologic studies are in progress that aims at knowing if the positive cases are rising because of Omicron or some other factors.

One of the biggest aims of economies is resource allocation involving a balance between our priorities and competing needs so as to get the most suitable economic action. Any fiscal policy demands a judicious attitude in pursuing the goal of resource allocation and distribution. Fiscal discipline should reduce fluctuations in income, output, and employment.

Whether it is omicron or anything else the fact is that all facets of the current pandemic have in one way or the other way affected economies of the world in general and underdeveloped in particular. It is very important to correct all economic and social odds.

Fiscal indiscipline is an important characteristic related to all shocks of all times and COVID19 is no exception. Fiscal indiscipline implies that our governments are not maintaining good fiscal positions that coincide with macroeconomic stability and economic growth that is all-inclusive and sustained. Borrowing in large numbers and amassing debt like anything are enemies of every economy. The dual actions are responsible for the creation of fiscal crunches. To achieve the target of Fiscal discipline it is necessary for governments to maintain fiscal positions that are consistent with macroeconomic stability and economic growth that is sustained by letter and spirit. In order to create and maintain fiscal etiquette, there should be an avoidance of debt accumulation and excessive borrowing.

One of the biggest aims of economies is resource allocation involving a balance between our priorities and competing needs so as to get the most suitable economic action. Any fiscal policy demands a judicious attitude in pursuing the goal of resource allocation and distribution. Fiscal discipline should reduce fluctuations in income, output, and employment. COVID19 and all its variants no doubt have generated fiscal indiscipline which is why all governments should be prudent to create ‘‘budgetary beanbags’’ to combat all shocks and disturbances and to deal with anticipated economic and fiscal burdens.

Economists surveyed by Reuters argue that economies should emphasize fiscal judiciousness as there is a declining trend in the Indian economy. Lead Economist at Emkay Global Financial Services, Madhavi Arora argues that Omicron and the allied bad repercussions have a short end and is in no way a long-lasting wave.

A fiscal deficit connotes a gap in a government’s income compared with its spending thereby meaning that there is a fiscal dearth in the government spending beyond its means. There is a dip in the fiscal deficit from 135.1% in the April-November period of the previous financial year to 46.2% in the current financial year. There is a need for fiscal consolidation and all the fiscal policies carried out by the government at all levels must aim at reducing their deficits and debt stock build-up.

In order to understand Omicron and its impact on the Indian economy and other emerging markets, planners need to Google and start thinking about consolidating their budget deficits post COVID19 years. They need to include a series of fiscal responsibility laws, fiscal guidelines, and fiscal assistance (dynamic organizations in particular).

The strategy and implementation policy, alongside economic (fiscal) and political commitment are necessary and sufficient conditions for the effective strengthening of fiscal discipline during shocks.

Dr Binish Qadri is an assistant professor at the Department of Economics, University of Kashmir. You can reach her at qadribinish@gmail.com.

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Economy

SKUAST-K to hold mega Science Summit on Aug 23-24

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SKUAST-K Mega Science Summit

Srinagar, Aug 21: Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir is hosting a mega first-of-its-kind science summit ‘Kashmir Science Vision-2024’ on August 23-24 at Shalimar campus. The event is expected to bring together leading scientists, researchers, policymakers, entrepreneurs and scholars to discuss and develop science and technology policy for the sustainable future of Jammu and Kashmir with a focus on helping the UT to emerge as a model for Viksit Bharat@2047.

The Kashmir Science Vision Summit will feature a dynamic range of keynote lectures, panel discussions and brainstorming sessions.

These discussions will focus on key areas of regional development like Scientific Innovations & Entrepreneurial Opportunities for exploring how technology can be harnessed to drive socio-economic growth and create new business opportunities, Biomedical & New-Age Sciences for advancing healthcare through innovative medical sciences and improving health outcomes for the region’s residents. Food Security & Sustainability for promoting sustainable agricultural practices to ensure long-term food security and environmental health, Biodiversity Conservation & Disaster Management for developing strategies to protect the region’s unique ecosystems and mitigate the impact of natural disasters will also feature in the two-day summit.

The summit aims to foster collaboration among diverse stakeholders to ensure that scientific advancements translate into meaningful benefits for Jammu and Kashmir.

Vice Chancellor SKUAST-K Prof Nazir Ahmad Ganai said the summit will serve as a catalyst for the region’s sustainable development and strategic growth. “It will be remembered as the spark that ignited science and technology-led future-ready Jammu & Kashmir,” he added.

Pertinent to mention, SKUAST-K is a premier institution dedicated to advancing agricultural sciences and technology. With a commitment to innovation and excellence, the university plays a pivotal role in fostering sustainable development and technological progress in the region.

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Trade

Lenskart enters Kashmir market, opens shop at Regal Chowk

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Lenskart enters Kashmir market

Srinagar: Lenskart, India’s leading eyewear brand, has forayed into the Kashmir valley with the opening of its first outlet at Regal Chowk in Srinagar city. This expansion marks a significant milestone for Lenskart as it continues its mission to provide vision correction solutions to every individual across the country and beyond.

With seven successful stores already established in J&K UT’s Jammu city and plans underway for another outlet in Sanat Nagar, Srinagar, Lenskart aims to extend its presence to every nook and corner of Srinagar city.

“We have plans to expand our reach into other districts of Kashmir soon, ensuring accessibility to quality eyewear products and services for all residents,” said Dr Mohammad Mutaher Zerger, who heads Lenskart’s Portfolio and Franchisee Business Divisions.

Dr Mutaher is a seasoned professional with extensive experience in franchise management. Having previously served at McDonald’s, the new head of franchise at Lenskart brings valuable expertise in expansion strategies and operational excellence. “We are dedicated to providing state-of-the-art sophistication in eyewear technology, coupled with unparalleled customer service,” he added.

Lenskart’s commitment to accessibility and affordability is reflected in its offerings, including the innovative Buy One Get One (BOGO) facility available at all Lenskart outlets and online. Additionally, the brand provides complimentary eye testing facilities, ensuring that customers receive comprehensive care tailored to their needs.

Lenskart enters Kashmir market

Lenskart Founder, Shark Piyush Bansal’s Vision is to give correction-less vision to the entire India.

In line with its dedication to innovation and excellence, Lenskart recently inaugurated a cutting-edge robotic factory in Bhiwandi, where lens production and fittings are carried out with precision and efficiency. This advanced facility underscores Lenskart’s commitment to leveraging technology to deliver superior-quality products to its customers.

Lenskart enters Kashmir market

With a network of 1800 stores across India and a growing presence in international markets such as Singapore, Saudi Arabia, Thailand, and the UAE, Lenskart is poised for further expansion into other countries in the Middle East and Asia-Pacific regions.

Lenskart’s entry into Kashmir signifies not only its commitment to providing vision correction solutions but also its dedication to empowering individuals with the gift of clear vision, enabling them to lead more fulfilling lives.

 

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Ecology

Economic and Environmental Implications of Sand Mining in Kashmir Division

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Environmental Implications of Sand Mining
Uzma Hameed
Dhaar Mehak M.

Sand mining is the process of extracting sand from in and around the rivers, streams, lakes etc. Sand is also mined from beaches and inland dunes and dredges from ocean beds and river beds. In modern times sand is considered to be an essential raw material for construction purposes. As such, individual and private companies are increasingly demanding sand for construction purposes and this has placed immense pressure on sand resources. As a practice it is becoming an environmental issue as the demand for sand has been persistently witnessing an increase in industry and construction sectors of the economy especially in the developing pockets of the world. In developing nations, including India the annual demand for sand has been witnessing a perpetual rise of 07%. This has led to both an increase in the demand and price of sand in the open market. At the same time, people have been witnessing a profitable venture out of mining sand both legally and illegally leading to a number of issues and concerns.

Mining has been identified as the spine of the construction and infrastructure-centric economic growth and development process of the developing world, India being no exception to the same. Given the geographic extent of the country, the sand resources in the country have been plenty. However, like any other natural resource, the quantum of sand in India is limited. The usage however has been in practice right from the pre-historic times, the demand and usage being all time high in the contemporary times. The first recorded history of mining in India dates back to 1774 when the English company was granted permission by the East India Company for mining coal in the Raniganj coal fields.

After the colonial independence of the country, the growth of mining under the aegis of successive five-year planning processes has been quite speedy. Mining is among the significant economic activities of the country. The Gross Domestic Product (GDP) contribution of mining in India ranges between 2.2% and 2.5%. Given the historicity associated with mining in the country, its extraction and utilization processes have undergone a major shift towards modernization. The economic reforms of the 1991 and 1993 National Mining Policy further especially contributed towards the growth of the mining sector. The Indian mining industry in contemporary times provides job opportunities to around 7 lakh individuals. Given the diversity of the mining activities across the country, each state specializes in a related activity that it possesses a comparative advantage in especially in light of the reserves.

Given the geographic nature and extent of the region of Jammu and Kashmir, sand deposits in the region have been a common sight. At the same time, given the cold climate of the region, the need for secure housing has always been prioritized by the populace and governance of Jammu and Kashmir. With the evolution of construction processes and techniques, the shift from traditional wooden houses towards modern concrete houses has been widely witnessed. One of the main raw materials used for the construction of such houses has been identified as sand.

There are approximately 261 mineral blocks across the districts of Kashmir amongst whom the majority are situated along the bank of the river Jhelum. The mineral blocks in Kashmir contain sand deposits and various other minerals. One of the mining hotspots of the Kashmir division is the town of Bijbehara, locally known as Vejibror. While Bijbihara is also known as the town of Chinars, it has historically been a significant contributor towards the local economy. The town is located on National Highway 44 along the extended banks of the Jhelum River. It is also known as “Town of Chinars”. It is situated about 45 km from the capital of the Union Territory of Jammu and Kashmir, Srinagar.  Within the Bijbehara town, the area of Gadhanji-Pora is particularly the committed hotspot of mining activities. It is situated approximately half a kilometre away from the Sub-District headquarters of Bijbehara.

According to the stakeholders, the most prolific user of sand is the construction industry. Individuals are increasingly demanding sand for domestic and commercial construction purposes. While there has been an increase in both the demand and prices of the resource, it has placed immense pressure on the local sand resources and deposits. Locally sand is being used in almost every construction-related activity from cement and concrete to plastering, roofing, grouting, painting etc. It is also commonly used in constructions like mortar, concrete, and cement strength, mass and stability.

Because of its smooth texture, better bonding qualities, and low impurity concentration, river sand is the most often utilised in Kashmir due to its quality, quantity and availability. Sand is the key component of concertation. Sand mining is rampant at many places along the Jhelum River, especially in the Bijbehara.

 Given the extensive mining in the region, at certain points, the miners have breached the banks of rivers. The miners often drive their heavy vehicles straight into the water causing huge damages to the bunds along the river. These miners have lately also been using other heavy machinery like machine excavators and bulldozers in attempts to extract more sand in less time. By removing more sand than the rivers can naturally replace with the sediments it carries downstream, sand mining activities carve a deeper and narrower bed. It further goes on to lower the water levels in the river below the usual, speeds up the flow and erodes the banks. The biodiversity within and along the river is damaged. The fishes and other aquatic species that closely rely on the local bio-diversity are increasingly coming under threat.

Abdul Rehman, a local resident and fisherman, who has been fishing for the past 40 years describes his deteriorating experience, “Earlier if I covered an area of 3 km in the river, I would catch 6-8 kilograms of fish. Now, covering the same distance, I barely manage to catch 250 grams”. People from the Pazalpora area of Bijbehara, where the banks have been breached at multiple places, lament that they have been left all the more vulnerable to reoccurring floods because of unthoughtful activities like these.

The sand miners in and around the Bijbehara area of Anantnag district have been vandalizing the Jhelum River illegally. The damage is being increased manifold by the increasing use of heavy machinery for speedy mining of sand. After the devastating floods of 2014, the state government has been spending a significant amount of state money on the restoration, repair and upgrading of the banks of the river Jhelum. The so called and rightly called, ‘sand mafia’ across the valley in general and Bijbehara area in particular is breaching the sensitive river banks for the monetary interest of a few greedy people.

As such, as a collective voice basing our understanding on the facts mentioned above, it falls upon both people and the authorities to look deeper into the issue. As a matter of sustainability, now is the high time that the matter is dealt with an iron fist.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology and can be reached at dhaarmehak@gmail.com

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