Times of India reported that since the total closure of iron ore mining dealt a huge blow to the economy rendering thousands jobless, the mining villages are witnessing a change in terms of quality improvement in the environment.
EIA Resource and Response Centre, Goa which conducted a rapid survey to determine the impact of ban on mining in the state said that “Residents from villages around the mines at Netravali, Sanguem, Goa, have indicated positive results due to the stoppage of mining in the area.”
There has been a huge improvement in the quality of stream water and yield of local produce. Hence if the ban on mining continues, one could surely expect other such positive changes in future.
The study said that "Even though 'mining dependents' are claiming loss of income due to stoppage of mining, 'there is a section of the public benefiting economically by way of agriculture and exploring new options."
It was also found that the ban forced people to re think and venture into different occupations. Post mining ban cultivators discovered that their chillies and cashew produce increased while earlier the dust would coat the plants and rot the flowers.
Traditional fishing communities have also noticed a rise in the 'mendios' in Chicalim along the bank of Zuari. The route was earlier used for transportation of ore by barges causing water pollution.
Some truck drivers have started going back to agriculture as a way to sustain and clear their loans from the banks. A truck driver, with the closure of mines in Sirigao, Bicholim, has managed to bounce back as a motorcycle pilot.
According to economist and Member of Rajya Sabha Mr N K Singh, the worst is not over for the Indian economy. India may achieve short term reprieve through expenditure compression. However, it may not be sufficient to bring macro economic stability in the medium and long term.
Mr Singh, who was India’s Revenue Secretary from August 1996 to August 1998 and Principal Secretary to the Prime Minister, felt that the prevailing policy would shift the fiscal pressures to the next year.
He said Business Line after the launch of his book The New Bihar here that “The difficult decisions on subsidy and public expenditure rationalisation have been postponed. Those are necessary if you want to have a fiscal deficit that is acceptable in the medium term.”
According to him imaginative steps taken by the RBI in reducing the current account deficit through the dollar swap window, coupled with reduction in gold imports, was one reason for the short-term reduction in Current Account Deficit.
Slackening of oil prices post Syria crisis and lifting of sanctions on Iran is another reason.
He said that “These are not long abiding factors. In the long term, exports need to pick up far more significantly. The fact that export growth has not gone up despite the rupee depreciation and improved competitiveness, suggests that new markets and products are far more problematic. People are worried that given the regulatory hurdles and labour laws, the Indian manufacturing activity has become globally uncompetitive.”
According to Mr Singh, the slowdown in India is primarily because of domestic policy paralysis and less of exogenous factors. The worst is not over, Mr Singh said and pointed out that investor confidence remains weak, interest rates are high and food inflation continues to be a matter of concern.
He said that “Temporary reprieve has been obtained and serious problems have been brushed under the carpet.”
According to Mr Singh, confidence over the RBI’s enhanced capability to manage inflows has seen less impact of Fed tapering.
However, bulk of the tapering is yet to be done and its impact will be visible in the long run.
He said that “The best bet is that there won’t be further outward flow. But we do not know. How much and to what extent the markets have factored in is what time will tell.”
Source:- steelguru.com
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