Once massive farmers realise they can not depend on labour to work their fields, a most unusual pattern will develop in agriculture. They'll shift to a far deeper use of machinery _ basically making agriculture fairly capital-intensive. Where that is not doable, equipment will exchange labour, defeating the very rationale for the iron bowl. The iron bowl goes to make this worse. But your complete rationale for the troika of help must be to make the Indian worker higher fed, healthier and more able to bargain with employers. The area created by the PM for a safety net for the households of unorganised labour should now be crammed with the scope to make the optimum use of that labour, or else we'll be confronted with a primary-class disaster in our economic policy. The rise in the bargaining power of labour with the available security net is not going to happen because the variety of jobs will fall.



Given the absolutely sub-human circumstances during which a huge proportion of households under the poverty line stay, there are few arguments towards these pillars of social safety the government is creating. Although extra opportune several years in the past, it remains to be doable that there is scope for an aluminium smelting joint enterprise in India because of the availability of bauxite, coupled with again-to-back joint ventures in India and China for finished merchandise. Evidence is already mounting from these pockets of rural India where NREGA has been a hit about the withdrawal of labour. Not grabbing it can create problems for India of the sort that Europe has run into with its overpaid labour market. Food stamps can eliminate all that _ and, as an extra profit, develop a first-class free market in foodgrain. The meals safety bill when passed will present an assured quantity of rice or wheat free to the bottom rung of the inhabitants. While India's per capita GDP is much under Europe's, quick-circuiting the logic of constructing a social safety web that's comparable with economic progress rates will pitchfork us right into a Europe-type "pricey labour zone", pricing us out of markets for labour-intensive goods.



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