Looking at the growing unemployment and huge migration on the one side and rapid privatisation of different sectors on the other, Odisha can grow by encouraging its marginalised sections to business sector for self- employment. Business is one of the largest sectors of self -employment in our economy, but for many historical reasons and continued discriminatory social and religious practices, apart from lack of access to financial institutions in the absence of an inclusive financial policy, a number of social groups are excluded from the sector, especially the marginalised sections.
The SCs and STs were historically denied rights over land, education, capital, and access to business. The business sector is the monopoly of a few dominant classes. Access to credit is an important economic right of every individual, without which economic development, especially self-employment and entrepreneurial promotion, is not possible. Unfortunately, the financial policies of the Government for the last 75 years have failed to ensure the inclusion of a majority of social segments into business. This has reflected in asset and income inequality among social groups in the country.
While aspiring to be a world economic leader and to see a developed India in 2047, it is equally important to create equal opportunities for all sections to grow in business. For that reason, it is highly necessary to provide affirmative action in business also. The Government is facilitating corporations and in the same way, it must help the MSME sector to grow and make special provisions for the excluded social groups. Their rights over the resources of the country must be recognized, and their active participation in nation-building must be recognised by the economic policy of the Government.
In terms of financial services, Odisha is very poor, with a limited number of bank branches providing banking services to all. There is little effort by the State to promote financial literacy among the marginalised sections. It has been observed that most banks are violating Reserve Bank of India guidelines and credit policies while dealing with the marginalised section borrowers. Bank officials are discriminating against the SC and ST customers in a number of ways. The subsidy money provided by the Government through banks is not reaching to the beneficiaries on time.
The lopsided development of the past few decades has already resulted in growing impoverishment among people dependent on the primary sector, such as land, forest and water-based activities for livelihood. It has triggered the issues of distressed migration, unemployment, and chronic poverty. Business, mining, and industries in the State have created jobless growth, and whatever income and employment opportunities have been created, it is being monopolized by a few privileged sections without having a fair share for the marginalised. The nature of unemployment and access to employment varies from region to region and also differs among economic classes and social groups of the State because of huge regional, social, caste, and gender disparities.
The State Government reported in 2019 in the Assembly that 1, 31,000 Government jobs were vacant in the State. The 2011 Census on households with salaried jobs says only 0.20 percent of SC and 0.12 percent of ST households in the State have salaried jobs in the private sector. The self-employment initiative has emerged as one of the major options to counter growing huge unemployment while improving the marginalised sections’ participation in business. It is expected that the Government of Odisha will make available adequate finance capital to upcoming entrepreneurs by taking a proactive role. Unfortunately, the financial institutions dedicated to this purpose lack the resources to meet the challenges.
The Constitution of India has made provisions for the holistic development of the marginalised sections, such as SCs, STs, OBCs, minorities, and others, due to their historical, social, educational and economic backwardness. Reservation apart, there are exclusive oeganisations for SCs, STs, OBCs, and minorities, with paid-up capital for economic activities, targeting the generation of self-employment among these social groups. These institutions include the National Scheduled Castes Financial Development Corporation (1989), National Safai Karmachari Financial Development Corporation (1997), National Scheduled Tribe Financial Development Corporation (1989), National Backward Classes Finance Development Corporation (1992), and National Minorities Development and Finance Corporation (1994). These institutions have been mobilising finance from the Government and private sources and operating through State channelizing agencies to finance various activities, such as business, trade, transport , microfinance and most importantly, professional job-oriented education at low interest. The Central and State Governments have also made provisions for reservations in public contracts, departmental purchases, dealership and distributorship, and have set up venture capitals to promote business among these social groups. The institutions have been operating through State channelizing agencies for almost the last three decades without an effective impact on the lives of the marginalised sections.
In the context of inclusive development of Odisha, the obvious question is how effectively these institutions are functioning in the State. Their annual reports have projected very poor performance. Ideally, the State should utilise all available Central schemes under these institutions, but in reality, the State has failed to implement the schemes for the benefit of the poorer sections. Many States, such as Kerala, TN, and Nagaland have more channelizing agencies, and several others have exclusive financial agencies for specific social groups, but Odisha has no such arrangement.
Unfortunately, Odisha’s routing agencies have been almost ineffective in terms of allocation of matching funds and reaching out to the targeted beneficiaries of the schemes.
