anshul gupta Profile picture
Feb 19 23 tweets 6 min read
We celebrate stories like UPI, IT sector or even big companies. But we miss: are things becoming better for the average Indian?

I tried to compare the past few National Family Health Surveys to see if things have genuinely improved and was not disappointed.
On a broad level, most things have improved. Let’s see each parameter 1 by 1.

NFHS 3 - 2005-06
NFHS 4 - 2015-16
NFHS 5 - 2019-21
1) Household changes

One of the biggest changes since NFHS - 3 (2005-06) to NFHS - 5 (2019-21) is access to electricity. 96.8% of households now have access to electricity up from just 68%.
Households which have access to sanitation facilities (toilets) have increased from 45% to 70.2%. Swachh Bharat Mission has been instrumental in this push in rural as well as urban areas.
Iodine deficiencies lead to goitre, miscarriages and mental retardation. To counter this, iodised salt should be used.

Households that use iodised salt for cooking increased from 51% to 58.6%. There was a drop in NFHS 4 (43.8%) but we bounced back.
70% of Indians are 1 accident away from poverty! That makes insurance very important for financial well being.

Households with any member covered by health insurance/ financing increased from 5% to 41%.

Significant credit goes to the Ayushman Bharat- National Health Mission.
Households which use clean fuel for cooking - 43.8% -> 58.6%. PM Ujjwala Yojana was targeted to help 5 crore households. Data for NFHS 3 was not available.
2) Population stats

Fertility rate has been steadily dropping over the past surveys. There are multiple reasons for this such as…
… increased awareness and implementation of family planning
Sex ratio of the total population (females per 100 males) has increased from 991 to 1020. However for children born in the last five years, the change has been from 919 to 929. This means change is mainly due to women living longer than men.
3) Literacy Rate for both males and females is steadily improving but it might plateau unless reforms are made.
Two very interesting indicators that stood out to me -

% of women who have 10 or more years of education has increased from 35.7% to 41.0%

% of the female population aged 6 years and over that has ever attended school has increased from 68.8% to 71.8%.
Children’s Health

Institutional births (Births that took place in a medical facility) has increased from 39% to 88.6%! Number of hospitals and access to healthcare has greatly improved.

Infant mortality rate (deaths per 1000) has also greatly reduced.
And this holds true even for births that may not take place at hospitals. % of births attended by a health professional increased from 47% to 89.4%.
Vaccination coverage has improved. Children age 12-23 months fully vaccinated increased from 44% to 76.4%
Prevalence of diarrhoea has reduced. In the 2 weeks preceding the survey, 9 out of 10 children nationally had diarrhoea. This has been reduced to 7.3%!
Nutrition

There has been steady progress in removing nutritional deficiency. BMI of less than 18.5 is used to define acute malnutrition.

Women with Body Mass Index below normal: 36% -> 18.7%
Men with Body Mass Index below normal : 34% ->16.2%
On the other hand, obesity (another kind of poor nutrition) has been steadily rising over the years.
Women who are overweight or obese: 11%(NFHS -2) -> 24%
Men who are overweight or obese: 18.9% (NFHS 4) -> 22.9%
At a systemic level, it might be time to adopt millets which are richer in micronutrients compared to rice and wheat.
And finally, some indicators on women empowerment
Women having a mobile phone that they themselves use: 45.9% -> 54%
Women owning a house or land (alone or jointly): 38.4% -> 43.3%
This might not be as reliable an indicator since many families purchase land in the name of females in the family, but this is a good trend.
Women having a bank or savings account that they themselves use: 15% -> 53% -> 78.6%

The Jan Dhan push has led to a lot of financial inclusion and integration with the banking sector.
When we look at the economy, it's easy to get lost in the GDP growth, GDP per capita growth, but ultimately it's the life of the people we are trying to improve. There have been some misses but the outcomes of good policies are always visible.

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More from @anshgupta64

Feb 12
Indians love gold. According to a report by the World Gold Council, Indian households own more than 25,000 tonnes of gold - more than many central banks combined.

But what about the gold loan market? An explainer on how the gold loan market works.
Gold is not just an investment vehicle in India, but also provides liquidity in emergencies. Gold loans are one of the easiest and quickest loans to get.

In FY22, the AUM of gold loans touched ~ 5 lakh crores!
A large part (~65%) of this gold loan market is unorganised. Out of the remaining 35%, banks have 80% share and NBFCs have 20%.

Note - apart from the regular gold loans, there are also agriculture loans backed by gold. These are majorly given by banks.
Read 31 tweets
Feb 10
SEBI has proposed some changes to the bond market regarding issuance of listed securities as part of a consultation paper.

Three major changes
1) Information asymmetry - Listed bonds can be issued in 2 modes: private placement or public issue. When bonds are issued, certain information disclosures have to be made.
Public issue disclosures are more detailed than private placements since publicly issued bonds are offered to the general public.
Read 12 tweets
Feb 5
Direct tax contributes ~30% to the Union Budget. Out of every ₹100 that a state pays in direct tax, how much direct tax does it get back?

Why does Maharashtra get back ₹7, UP get back ₹333 and Bihar get ₹922?
This is how much each state contributes in terms of direct taxes. It is an effect of income levels, business activity (agricultural income doesn’t contribute), how effective states are in collecting taxes.

Data source - Swarajya, Ministry of Finance, Dept of Revenue.
And this is how much they get back from the Centre.
Read 11 tweets
Jan 29
Visa Market Share - 52.6%
Amex Market Share - 19.6%

Visa Revenue 2022 - $29.3 B
Amex Revenue 2022 - $50.6 B

What is the secret of American Express?
Visa/Mastercard are card networks. Their main role is information sharing. When you swipe your card at a POS Machine, how does your credit card issuer know which merchant to transfer the money to?
Your card doesn’t individually maintain a record of all merchants who can accept credit cards.

Instead it ties up with a card network e.g. Visa/MasterCard. Any merchant that has Visa as a network service provider can accept payments from a Visa card.
Read 23 tweets
Jan 22
The budget is around the corner! Do you think tax rates will reduce?

A thread breaking down India's last budget, historical trends of income and expenditure.
Tax revenue source over the years.
Generally when a country has low income, indirect taxes make up a larger chunk of tax collections.

And as a country transitions into a more mature economy, income tax contributions increase and % share of indirect taxes goes down.
Read 16 tweets
Jan 8
The general perception about government companies is - loss making, inefficient.

Found some good data in the Annual Report for Central Public Sector Enterprises. The combined profit in FY22 was ₹2.49 lakh crores.

A brief thread on the role of CPSEs in the Indian Economy.
The report covers 389 CPSEs out of which 248 are operating, 95 are under construction and 46 are being liquidated/closed.

Note - the report doesn't include sectors like banking and insurance.
Initially, when the tax system in India was not very well established, government companies were a major source of revenue for the government.
Read 20 tweets

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