Current News Indian Economy

Kerala Most Literate State; Andhra Pradesh Worst Performer: NSO Survey


The report on ‘Household Social Consumption: Education in India’ as part of 75th round of National Sample Survey – from July 2017 to June 2018’ provides for state-wise detail of literacy rate among the persons aged seven years and above.

There has often been a conjecture around South Indian states being more literate than the North, however, the latest data debunked that.

The report shows the southern state of Andhra Pradesh as the worst among all states in India in terms of literacy rate, even behind Bihar’s 70.9%. While Andhra’s literacy rate is at 66.4%, Telangana’s is 72.8%, which worse than the national average of 77.7% and Karnataka’s is 77.2%.

Findings

Best Performers

  • With 96.2 per cent literacy, Kerala has once again emerged as the most literate state in the country.
  • After Kerala, Delhi has the best literacy rate at 88.7 per cent, followed by Uttarkhand(87.6 per cent), Himachal Pradesh (86.6 per cent) and Assam at 85.9 per cent.

Worst Performers

  • Andhra Pradesh featured at the bottom with a rate of 66.4 per cent.
  • Rajasthan is the second worst performer with literacy rate at 69.7 per cent, followed by Bihar at 70.9 per cent, Telangana at 72.8 per cent, Uttar Pradesh at 73 per cent and Madhya Pradesh at 73.7 per cent.

Overall Literacy Rate

  • The study has pegged the overall literacy rate in the country at about 77.7 per cent.
  • In rural areas, the literacy rate is 73.5 per cent
  • In urban areas,the literacy rate is 87.7 per cent

Gender-wise Literacy

  • At all-India level, the male literacy rate is higher at 84.7 per cent compared to 70.3 per cent among women.
  • The male literacy rate is higher than female literacy rate among all states. Even in the worst performing states, there was a considerable gap in male and female literacy rate.
  • In Rajasthan, the gap is widest as male literacy rate stood at 80.8 per cent compared to 57.6 per cent of females.
  • Bihar comes second after Rajasthan in Male to female literacy gap –where male literacy is at 79.7 per cent compared to 60.5 per cent of females.
  • In Kerala, the gap between male and female literacy is the thinnest at just 2.2 percentage points.


Other Findings

Digital Divide

  • In addition, the report revealed that nearly 4 per cent of rural households and 23 per cent of urban households among the sample size possessed a computer.
  • Nearly 24 per cent of persons aged 15-29 in rural areas can operate a computer while the same for urban areas is 56 per cent.
  • Nearly 35 per cent of persons aged between 15-29 years reported using the internet during the 30 days prior to date of the survey. In this regard, the proportion was 25 per cent in rural areas and 58 per cent in urban areas.

Current News Indian Economy Banking & Finance

Shapes Of Economic Recovery


The shapes of economic recovery is determined by both the speed and direction of GDP prints. This depends on multiple factors including fiscal and monetary measures, consumer incomes and sentiment.

  • Z-shaped recovery: It is the most-optimistic scenario in which the economy quickly rises like a phoenix after a crash. It more than makes up for lost ground (think revenge-buying after the lockdowns are lifted) before settling back to the normal trend-line, thus forming a Z-shaped chart.
  • V-shaped recovery: It isthe next-best scenario in which the economy quickly recoups lost ground and gets back to the normal growth trend-line.
  • U-shaped recovery: It is a scenario in which the economy, after falling, struggles and muddles around a low growth rate for some time, before rising gradually to usual levels.
  • W-shaped recovery: It is a serious situation - growth falls and rises, but falls again before recovering yet again, thus forming a W-like chart.
  • L-shaped recovery: Itis the worst-case scenario, in which growth after falling, stagnates at low levels and does not recover for a long, long time.
  • J-shaped recovery: It is a somewhat unrealistic scenario, in which growth rises sharply from the lows much higher than the trend-line and stays there.
  • Swoosh shaped recovery:It is similar to the Nike logo — in between the V-shape and the U-shape. Here, after falling, growth starts recovering quickly but then, slowed down by obstacles, moves gradually back to the trend-line.
  • Inverted square root shaped recovery: In this, there could a rebound from the bottom, the growth slows and settles a step down.

K Shaped Economic Recovery

  • As the economy struggles to shake off the pandemic effects, worries are growing that the recovery could look like a ‘K’.
  • Essentially, the concept rests on the idea that while the fortunes of some in the economy have nearly or fully recovered (broadly defined), the fortunes of many are still declining, or at least failing to recover nearly as quickly.
  • K is reflective of the performance of the stock market — a sharp decline followed by sharply divergent pathways.
  • The rolling lockdowns due to Covid 19 have sent the economy into a tailspin. Growth in India, and indeed much of the world, is set to fall off a cliff in FY21.
  • That would be one where growth continues but is uneven, split between sectors and income groups.
  • K-shaped recovery means the growing gap between ‘winners and losers’. An example in India is the stock market being healthy while millions have lost their jobs.

Why is it important?

  • The Indian economy was slowing down even before Covid hit, and the trouble has now been amplified manifold because of the lockdowns.
  • Experts predict a fall of up to 5 per cent in the GDP in FY-21. This is clearly a crisis situation, and our getting out of the hole will depend a great deal on the shape of the economic recovery that will hopefully follow.

Which Shape of Recovery is Favourable?

  • A Z- or at least V-shaped recovery would be the most preferable. If not, we should at least have a U-shaped recovery or a Swoosh to get back on our feet in a couple of years.
  • A W-shape will bring in much pain before the eventual gain, while an L-shape or the Inverted-square root will make a wreck of the growth train.