The price of stability in an unstable world

We have been sold a dangerous idea that stability is normal and disruption is the exception, but is it? Yes, stability is an achievement, though an expensive one! Every morning, when the electricity is on, the internet works, the bank processes a transaction, food reaches you from a quick-commerce platform, a child gets to school, a salary arrives on time, and a hospital has the medicines it needs, it means thousands of invisible systems are doing their job in the background. We notice them only when they fail. For most of modern history, perhaps the greatest privilege was not wealth but predictability, the reasonable expectation that tomorrow would look broadly like today. That expectation is now harder to sustain as wars are disrupting supply chains, climate events are destroying livelihoods, artificial intelligence is unsettling occupations, financial volatility travels across borders in milliseconds, and demographic change is altering the very structure of families and work. We are entering an era in which instability may no longer be a temporary interruption to ordinary life but may become the usual.

So, who pays for stability in an unstable world? The obvious answer is governments, which build roads, maintain electricity grids, regulate financial systems, run hospitals, banks, police, and borders, subsidise food, respond to disasters, and provide social protection. But businesses pay too, as they maintain inventories, assets, diversify suppliers, retain cash and build redundancy into systems that would otherwise be cheaper and more efficient. So do families, as they keep emergency savings, buy insurance, invest in education, maintain social networks and sometimes make profoundly conservative choices because the consequences of failure are too high. Individuals pay in ways that don’t appear anywhere on a balance sheet. They stay in jobs they dislike because they’re secure. They postpone starting a business because they cannot afford six months without an income. They choose a predictable career over an uncertain vocation. They save instead of spending. They remain in cities they don’t particularly love because the city offers better healthcare, schools and employment opportunities. Stability, in other words, is not free, and we purchase it every day, often without realising that we are doing so.

But we don’t all pay the same price for instability. A wealthy household can absorb a medical emergency, while a poor household may have to borrow, sell an asset or withdraw a child from school. Likewise, a large corporation can survive a temporary collapse in demand, whereas a small enterprise may shut down permanently. A professional with savings can spend six months learning a new skill, and at the same time a casual worker may not be able to afford six days without income. The ability to absorb a shock is itself becoming a form of wealth. We have traditionally measured inequality through income, consumption and assets. Perhaps we now need another measure: the unequal distribution of uncertainty. Two families earning the same amount can live completely different lives if one has savings, insurance, secure housing, social capital and access to credit while the other survives from one monthly payment to the next.

Consider the millions of informal workers in India whose economic lives were disrupted during the COVID-19 lockdown. For many, the crisis was not simply about losing a job. It meant losing the entire architecture through which survival happened, like their daily wages, transport, access to urban work and sometimes food itself. The images of migrant workers walking hundreds of kilometres home became one of the defining visual memories of the pandemic. The crisis revealed how much of India’s economic stability was being privately financed by people with almost no financial cushion. When formal systems failed, the burden was transferred to households, communities and individual workers, where families became the insurance company of last resort.

Something similar happens every day, at a smaller scale, when an illness strikes a low-income household. India has made enormous progress in expanding healthcare access, insurance and public health infrastructure, but for millions of families, healthcare expenditure can still become a destabilising financial event. The difference between a middle-class household experiencing a serious illness and a poor household experiencing the same illness is not simply the quality of medical treatment available. One family may recover financially after recovering medically, while the other may spend years repaying debt. The illness turns into a crisis cascade of healthcare expenses, debt, reduced consumption, interrupted education and sometimes the sale of productive assets.

Climate change is producing another version of the same problem. Take a small farmer in Bihar, Assam, Odisha or Rajasthan. Agriculture has always involved uncertainty, but climate volatility is changing the scale and frequency of that uncertainty. An unexpected flood, prolonged heat, irregular rainfall or pest outbreak can wipe out months of effort. We often respond by telling farmers to become ‘climate resilient’, adopt new practices, diversify crops or use technology. All of these can be useful, but we tend to forget that resilience requires resources. A farmer with savings, irrigation, crop insurance, access to credit and market information has options. A farmer who owns little land and depends entirely on one seasonal harvest has very few. We cannot keep asking the poorest citizens to become more resilient without asking whether we have given them the financial and institutional infrastructure with which resilience can actually be built.

The same contradiction is visible in India’s growing, small-enterprise economy. We celebrate entrepreneurship and tell young people to become entrepreneurs, women to start enterprises, rural communities to build businesses and small producers to enter digital markets. Yet entrepreneurship is, by definition, an encounter with uncertainty. A person with substantial capital can afford entrepreneurial failure, but, say, a woman investing her family’s only savings in a small enterprise cannot. When a rural woman starts a tailoring unit, food-processing business, handloom enterprise or digital service centre, she is not merely creating income but is taking a financial risk on behalf of her household. This is why access to credit alone is not enough and entrepreneurs need markets, digital access, business capabilities, working capital, insurance, peer networks and, perhaps most importantly, the ability to fail without falling into destitution.

And then there is the instability coming from new-age technology. AI may create extraordinary new opportunities, but it will also change the value of many existing skills. We tell older workers to remain employable in a labour market changing faster than the institutions designed to train them. But learning itself requires time, money and psychological space. The person working ten hours a day to pay rent cannot effortlessly become an AI-enabled professional at night. The person supporting a family cannot always afford to experiment with a new career. Adaptability is not simply an attitude; it is an economic resource.

This is where our understanding of resilience needs to change. We have increasingly turned resilience into an individual virtue of being adaptable, keep learning, diversify your income, build an emergency fund, exercise, take care of your mental health, prepare for the future, etc., etc. There is nothing wrong with any of this, but we risk creating a society in which structural instability is increasingly privatised. At some point we have to ask whether we are confusing resilience with the ability of individuals to absorb risks that should partly be shared by institutions.

How to prevent uncertainty from becoming catastrophic for ordinary people, perhaps, will be the central economic challenge of the next few decades. We cannot promise a farmer that the monsoon will behave, a worker that her job will exist for thirty years, or that the next pandemic, financial crisis or geopolitical shock will never happen. But we can design systems in which these events do not permanently destroy a person’s future. That would require a different conception of social protection. The welfare state of the industrial era was largely built around protecting people from particular risks of unemployment, old age, illness, disability and poverty. The unstable world ahead may require something more dynamic, like systems that help people move through disruption. 

The cost of living without psychological certainty is another hidden cost of instability that economists struggle to capture, where uncertainty consumes mental bandwidth. When you don’t know whether your job will survive, whether a medical emergency could wipe out your savings or whether your child’s education will remain affordable, some part of your mind is permanently occupied by contingency planning. And that has implications beyond individual wellbeing. A society in which people are perpetually afraid of falling backwards is unlikely to be as entrepreneurial, innovative or creative as a society in which people know that failure will not destroy them.

This produces a fascinating paradox as we want an innovative economy, but innovation requires risk. Perhaps, therefore, the goal should not be stability in the conventional sense. We should stop trying to build a world in which nothing goes wrong, as such a world does not exist. The goal should be recoverability, where the capacity of people, families, businesses and communities to recover when something inevitably goes wrong should be present. This is ultimately a question of what kind of social contract we want. The price of stability will rise as the world becomes more volatile. Governments will spend more on resilience. Companies will pay more for redundancy and security. Families will save more. Individuals will invest more in skills and insurance. But if we allow every emerging risk to be pushed downwards from governments to companies, from companies to workers, from institutions to families and finally from families to individuals, we will create a society that appears economically efficient while becoming increasingly fragile.

We have become obsessed with efficiency precisely when the world is demanding resilience. We have spent decades removing buffers because buffers looked like waste, including excess inventory, spare capacity, multiple suppliers, idle infrastructure, permanent workers, and generous social protection. Everything had to be optimised, become leaner, faster and cheaper. Until the world reminded us that the things we call inefficiencies are sometimes the very things that keep systems alive when they break. So, the question we should be asking is not how much stability we can afford. It is how much instability ordinary people can afford to absorb before a temporary shock becomes a permanent change in their lives. Because the future will not belong to those who successfully predict every disruption. Nobody can. It will belong to societies that make disruption survivable. And if we fail to build those societies, we may discover a deeply uncomfortable truth that the poor will not merely be the people with the least money, but they will be the people who can afford the least uncertainty.

Are you time-poor?

Somewhere between the invention of the pressure cooker and the arrival of 5G, we Indians collectively misplaced something really important: Time. Not lost in a dramatic, cinematic way, without violins or slow motion, but more like a wallet lifted from your back pocket in a crowded Metro. One moment it was there, lazy afternoons, unplanned conversations, the comforting stretch of doing nothing, and the next moment, gone. In its place, we now have Google Calendar reminders, WhatsApp notifications, and a persistent feeling that we are always slightly late for something, even when we are sitting still. Welcome to the era of time poverty, where your bank balance may look respectable, your Zomato order history may be thriving, and your LinkedIn profile may be aggressively inspirational, but your time account is permanently overdrawn.

Let’s rewind a bit, not to some sepia-toned village fantasy, but just a generation ago, in the same cities we inhabit today, where life had a different rhythm. Time was not abundant in a literal sense, as people still worked hard, commuted, raised families, but it felt less fractured. Evenings were events in themselves, when people sat outside their homes discussing politics and cricket over multiple cups of tea, and that one neighbour who always seemed to have too many visitors. Children played gully cricket until the ball inevitably landed in someone’s kitchen, leading to heated negotiations that doubled as character-building exercises. Mothers called out from balconies and verandahs with a mix of authority and affection, summoning children home before darkness turned into parental anxiety. There were fewer choices, yes, but also fewer decisions to make. Dinner was whatever was cooked, and nobody spent fifteen minutes comparing paneer butter masala across twelve delivery apps while reading 237 reviews written by people who clearly have too much time.

The great unifier, television, had one channel, Doordarshan, maybe two if you were fancy. If you missed your favourite show, you missed it, as there was no replay, no binge-watching, no existential spiral at 2 AM where you question your life choices while watching the fourth episode of something you don’t even like. And waiting, ah, waiting was a legitimate activity. We waited for letters, for phone calls on the clunky telephone sets, for exam results. Waiting was not seen as wasted time; it was just part of time itself, like monsoons or power cuts. Our minds wandered, conversations happened, and occasionally, we even ‘thought’ our own thoughts without an algorithm suggesting what to think next!

Now fast forward to urban India today, where time is not just scarce but seems to be actively hunted. A typical weekday begins with negotiation between you and your alarm clock, which has now evolved into a relentless life coach with a snooze button. Before your feet even touch the ground, your thumb has already scrolled through emails, news updates, Instagram reels, and three subtle reminders that everyone else seems to be doing better than you at 7:17 am in the morning. We often eat breakfast alongside a call that begins with ‘Can you hear me?’ and ends with ‘Let’s take this offline,’ a phrase that has single-handedly consumed more human hours than traffic jams.

If time poverty had a national symbol, it would undoubtedly be the urban traffic. Whether you are inching along the Delhi-Gurgaon expressway, contemplating your life choices at Bengaluru’s Central Silk Board junction, or performing advanced geometry in Mumbai’s local trains, your commute is not just a journey, but a full emotional experience. You begin with hope, perhaps even optimism, maybe today will be different, maybe traffic will be lighter, signals more cooperative, humanity kinder. Ten minutes later, you are recalibrating your expectations, bargaining with Google Maps, and listening to podcasts or FM radio not out of curiosity but as a coping mechanism. By the time you reach your destination, you have experienced a full spectrum of human emotion and possibly learned a new cuss word, none of which you will remember by lunchtime.

And then come the meetings, those sacred rituals of modern work culture where time doesn’t exactly die, it dissolves. Meetings to prepare for meetings, meetings to debrief previous meetings, and meetings that exist solely because someone somewhere feared the silence of not having a meeting. Entire hours are spent discussing action items that could have been bullet points in an email, that could have been a message, that could have been… nothing. Ironically, in our relentless pursuit of productivity, we have created systems so elaborate that they ensure we have no time left to actually produce anything. Efficiency has become a performance, and everyone is performing.

Of course, technology was supposed to save us, and in many ways, it has. Tasks that once took hours now take minutes, information is accessible instantly, and communication is effortless. But somewhere along the way, technology stopped being a tool and started behaving like a very needy companion. Your phone, that sleek little rectangle of promise, is now a workplace, an entertainment centre, a social hub, and an anxiety generator rolled into one. You pick it up to check the time and resurface twenty-seven minutes later, having watched three reels, replied to two messages, ignored five, read half an article, and completely forgotten why you picked it up in the first place. Time isn’t just being spent; it is being nibbled away in tiny, invisible bites.

Urban India today offers an abundance of choices in the form of food, experiences, careers, and content. But abundance comes with a hidden tax in the form of decision fatigue. Earlier, dinner was simple, and now it is an exercise in research, comparison, and occasional soul-searching. Even leisure has become labour, as watching a movie involves navigating multiple platforms, genres, languages, and algorithmic suggestions, each insisting it knows you better than you know yourself. By the time you decide what to watch, you are too tired to watch anything. The freedom to choose has quietly transformed into the burden of choosing.

Friendships, once spontaneous and effortless, are now managed with the precision of project timelines. ‘Let’s catch up’ translates into checking calendars, blocking slots, rescheduling due to unforeseen commitments, and finally meeting for exactly sixty minutes before someone inevitably says, ‘I have an early morning tomorrow.’ Even weddings, those grand celebrations of chaos and joy, have been optimised for efficiency. Destination weddings over long weekends, carefully curated guest lists, and itineraries that resemble conference agendas. Nothing says romance like a well-managed Google Sheet.

But perhaps the most insidious aspect of time poverty is lack of attention rather than the lack of hours. You may technically have free time, but your mind is rarely free. You are at dinner, but thinking about work. You are on vacation, but checking emails. You are resting but feeling guilty about it. The boundary between work and life hasn’t just blurred; it has politely excused itself and left the building. What remains is a constant hum of ‘I should be doing something,’ a background noise that turns even moments of rest into opportunities for anxiety.

In India, this phenomenon feels particularly intense because of the unique cocktail of factors at play. Rapid urbanisation has stretched infrastructure beyond its limits, turning simple commutes into endurance tests. Aspirational pressure ensures that everyone is constantly striving for better jobs, better salaries, better lifestyles. Digital adoption has been fast and enthusiastic, compressing decades of technological evolution into a few short years. And social expectations are layered on top of all this that rarely reduce, even as professional demands increase. The result is a society trying to operate at first-world speed with third-world infrastructure and fourth-world patience.

So are we truly poor in time? Or have we simply allowed time to be colonised and constantly interrupted? The uncomfortable truth is that it is a bit of both. We are busier, yes, but we are also more distracted. We have more tools, but less control. We are connected, but not always present. Time poverty, then, is not just about scarcity, but more about how we experience the time that we have. It is the difference between a long, uninterrupted conversation and a series of half-hearted replies. Between a meal savoured and a meal consumed while scrolling. Between living time and merely passing through it.

The solution, if there is one, is unlikely to be dramatic. Most of us are not about to quit our jobs and retreat to the Himalayas like some of our friends have, and even if we did, we would probably post about it online. But small shifts are possible, like protecting pockets of uninterrupted time, reducing unnecessary decisions, and occasionally allowing ourselves the radical act of doing nothing. These are not grand gestures, but they are meaningful ones. They remind us that time is not just something to be managed but something to be experienced.

We often say, ‘I don’t have time,’ when what we really mean is, ‘Something else has taken priority.’ Time poverty is not just a condition but a consequence of choices, both ours and the systems we inhabit. In a country that has mastered the art of jugaad, perhaps it is high time we apply that ingenuity to time itself. Because somewhere between the past we romanticise and the present we rush through lies a simple, almost rebellious idea that what if we stopped trying to save time and started trying to live it?

Circular economy solution for India’s cooking crisis

For the past decade, India’s clean cooking revolution was symbolised by a powerful image in the form of a woman in a rural village receiving her first LPG connection under the Pradhan Mantri Ujjwala Yojana (PMUY). It represented dignity, health, convenience, and liberation from the unpaid drudgery of firewood collection, respiratory illness, and smoky kitchens where women spent hours inhaling toxic fumes while cooking over firewood and dung cakes. And to be fair, it was a transformational policy intervention because it solved a critical access problem by expanding LPG connections to millions of low-income households. But as is often the case with development policy, solving access did not fully solve sustainability. 

The recent conflict in West Asia has disrupted global energy supply chains and exposed India’s dangerous dependence on imported cooking fuel. With tensions around Iran and the closure of the Strait of Hormuz, India, where nearly 60% of LPG demand is met through imports, and over 90% of those imports typically transit through Hormuz, has found itself in an avoidable crisis. LPG supplies have tightened, transportation costs have increased, and delays in refill deliveries have become common in many rural districts and smaller towns. In several places, households are reportedly waiting over 40 days for a cylinder refill. Prices have surged, black market sales have flourished, and many low-income families are being pushed back toward firewood, charcoal, and kerosene. India is facing its first wave of ‘energy migrants’ as LPG shortages and soaring fuel prices have triggered reverse migration from cities to villages, especially from the major industrial hubs, including Delhi, Mumbai and Surat. A clean cooking transition built on imported fossil fuel has suddenly begun to look alarmingly vulnerable.

India imports a substantial share of its LPG requirements, and a large portion of these imports move through geopolitically sensitive shipping routes. While India is considered a leader in clean cooking access, millions of households remain dependent on an international supply chain shaped by wars, shipping disruptions, currency fluctuations, and global oil politics. The rural poor, as always, bear the highest burden of this volatility. A delayed LPG refill in an urban apartment may be an inconvenience, but in rural India, it often means a family returns to collecting wood, spending additional hours on unpaid labour, or cutting back on cooked meals altogether. Small roadside eateries reduce their menu options, and migrant workers spend more on food. Development gains achieved over the years begin reversing quietly, one delayed cylinder at a time.

Today, the villages struggling with LPG shortages often possess enormous untapped energy resources sitting in plain sight. Across rural India, cattle dung, agricultural residue, poultry waste, kitchen scraps, and other organic materials are abundantly available. India has one of the world’s largest livestock populations, producing massive quantities of dung every single day. Much of this waste is either left to decompose openly, releasing methane into the atmosphere, or converted into traditional dung cakes that burn inefficiently and create harmful smoke. What if this waste could instead become a reliable source of clean cooking fuel? That is precisely where biogas emerges not merely as an alternative, but as a strategic necessity.

Biogas is produced through anaerobic digestion, a process where organic waste decomposes in oxygen-free chambers and releases methane-rich gas that can be used for cooking. The leftover slurry becomes high-quality organic fertiliser. This is an excellent circular economy model where households generate fuel from waste while simultaneously reducing fertiliser costs for farming. For rural families, this means lower dependence on LPG refills, lower household expenditure, improved sanitation, reduced smoke exposure, and additional agricultural benefits. Unlike LPG, biogas is hyperlocal as it does not depend on international shipping routes, refinery outputs, or geopolitical stability. Unlike firewood, it burns cleanly. Unlike solar cookers, it works regardless of weather or time of day. Unlike electric induction stoves, it does not depend on stable electricity supply, which remains inconsistent in many rural areas. In a world increasingly shaped by supply chain disruptions, biogas offers resilience.

India does not need to invent this model from scratch because proven examples already exist. In parts of Rajasthan, Maharashtra, Gujarat, Karnataka, Punjab, and several other Indian states, communities have successfully adopted household and community biogas systems. Villages linked to dairy cooperatives have demonstrated how cattle waste can be transformed into reliable cooking fuel. Some communities have significantly reduced their dependence on LPG altogether. During recent supply disruptions, such villages and farming households were largely insulated from shortages because their cooking fuel was produced locally. No waiting for gas agencies, no inflated black-market prices, and no dependence on international conflict. Their kitchens continue to function because their fuel is local.

What makes India’s underinvestment in biogas particularly frustrating is that the policy architecture already exists. The government has long operated biogas programs through the Ministry of New and Renewable Energy, and initiatives like Sustainable Alternative Towards Affordable Transportation (SATAT) have promoted compressed biogas (CBG). Yet these efforts have often remained fragmented, underfunded, and treated as niche rural welfare programs rather than core components of national energy security. India tends to think big when discussing energy with large refineries, strategic petroleum reserves, international supply agreements, and mega infrastructure. These are important; however, true resilience often comes from decentralisation. A household biogas unit in a rural village may seem small compared to an oil refinery, but millions of such units can collectively create enormous national resilience.

Imagine if even a quarter of India’s livestock-owning rural households had access to functional biogas systems. Or village-level community digesters serving clusters of homes where individual ownership is not feasible. Imagine schools, Anganwadis, hostels, and community kitchens using biogas generated from local organic waste. Think of self-help groups running maintenance services for biogas units as local enterprises. Imagine MGNREGA funding village-level renewable energy infrastructure. Suddenly, biogas can move from being a sustainability experiment to becoming a serious economic and strategic asset.

The climate benefits further strengthen this strategy. Methane emissions from unmanaged livestock waste contribute significantly to global warming. Capturing this methane for productive use helps reduce greenhouse gas emissions. Every cubic meter unit of biogas reduces 2 tons CO2e/year. Reduced firewood usage can lower deforestation pressures. Bio-slurry reduces dependence on chemical fertilisers, moving towards sustainable agriculture. Lower LPG consumption reduces fossil fuel imports. Biogas sits at the intersection of climate policy, rural livelihoods, women’s empowerment, waste management, and energy security, a rare policy intervention that solves multiple problems simultaneously. Biogas directly contributes to SDG 5 (Gender Equality), SDG 7 (Affordable and Clean Energy), and Sustainable Energy for All (SE4ALL). It also delivers results that contribute to SDG 1 (Poverty Eradication), SDG 3 (Good Health and Well-being), and SDG 13 (Climate Action).

The current LPG crisis should serve as a warning. The war in the Middle East did not create India’s vulnerability, merely exposed it. A country aspiring to become a global economic power cannot allow millions of household kitchens to remain hostage to international conflict. Energy security cannot only be discussed in terms of crude oil imports and electricity generation. It must also include the daily cooking needs of ordinary citizens. The woman waiting 40 days for an LPG cylinder in a rural village is experiencing energy insecurity in its most human form. India’s future energy strategy must become far more diversified. LPG will continue to play an important role, particularly in urban areas and transitional markets. But it cannot remain the singular answer for rural cooking energy. Biogas offers India local control that imported LPG can never provide. It transforms waste into wealth, dependency into resilience, and vulnerability into self-reliance. In a century likely to be shaped by geopolitical instability, climate disruptions, and fragile global supply chains, the most strategic energy resource may not be buried deep underground or shipped across oceans. It may be sitting quietly in rural backyards, waiting for India to finally recognise its potential.

Who are urban marginalized people

Photo Credit: https://humana-india.org/

In last 2-3 years, I have been part of several discussions to define and build a consensus on understanding of urban marginalised and vulnerable population (UMVP) in the context of India, and how this population group has been evolving and growing in numbers. India’s rapid urbanization over the past few decades has transformed its cities into economic powerhouses contributing 60% of India’s GDP. While in 2023 around 37% of India’s population lived in urban areas, it is estimated that by 2036, half of India’s population will live in cities. However, this growth has also led to the marginalization of a significant portion of the population. Cities Alliance estimated that 25% of the population living in urban areas are below the poverty line. By this estimate, a shocking 125+ million people are marginalised and vulnerable living in the urban areas. The urban marginalized and vulnerable groups comprising of slum dwellers, informal workers, migrant labourers, women, children, and the homeless face numerous challenges like access to basic citizens’ rights, services, and opportunities. As India continues its urban transition, addressing the vulnerabilities of these populations is critical to achieving inclusive development.

The UMVPs live in precarious conditions, often lacking access to basic services like clean water, housing, sanitation, healthcare, and education. Their vulnerabilities are shaped by socio-economic, cultural, political, and structural factors that leave them excluded from mainstream urban life. They often lack the necessary documentation to access government schemes and services, such as ration cards, Aadhaar cards, or voter identification. This exclusion prevents them from benefiting from welfare programs like the Public Distribution System (PDS), healthcare subsidies, or housing schemes. The UMVPs can broadly be classified in five sub-groups,

  1. Slum Dwellers: According to the 2011 Census, about 65 million people in India live in urban slums. Slums across India have poor housing, lack of sanitation, overcrowding, and a high risk of diseases, especially communicable. People living in the slums often have insecure tenure, making them vulnerable to eviction and displacement due to urban development projects. Displacement not only disrupts their livelihoods but also pushes them further into poverty. Poor living conditions contribute to health problems, including respiratory diseases (especially TB) and waterborne infections.
  • Homeless Population: India’s urban homeless population is particularly vulnerable, facing extreme marginalization. With no permanent shelter, the homeless are exposed to harsh weather conditions, violence, and health risks. They have limited access to government welfare schemes and often fall outside the purview of census data, making it difficult to design targeted interventions. HLRN estimates that there could be more than 3 million homeless individuals. Extreme poverty, unemployment, displacement due to natural disasters, mental illness, substance abuse, runaways, are often the causes of homelessness, and their numbers are continuously increasing in urban India.
  • Informal Workers: The informal sector accounts for nearly 80% of India’s urban workforce. This includes daily wage labourers, street vendors, domestic workers, and construction workers, among others. Informal workers lack job security, social protection, and access to formal financial systems, leaving them vulnerable to economic shocks. The COVID-19 pandemic exposed the extreme vulnerability of informal workers, who faced sudden job losses and had low-to-no access to financial aid. Informal workers often are slum dwellers, or live in low income housing colonies, or are even homeless.
  • Migrant Laborers: Migration to cities in search of employment and better life is common in India. However, migrant labourers, often from rural areas both intra- and inter-state, face significant challenges in urban settings. They often find employment in low-paying jobs with little to no benefits, live in temporary or inadequate housing, and struggle to access public services due to a lack of local identification documents. Temporary migratory population is also a sub-set of this group, who come to cities for seasonal work, migrate from one place to another, also migrate within the cities in search of work. Construction workers and artisanal nomadic groups can be good examples of migratory population.
  • Women and Children: Women and children within urban marginalized communities living in slums or informal settlements often work in low-paid informal jobs while managing household responsibilities. They are more likely to experience gender-based violence, discrimination and exploitation, limited access to healthcare, and lack of educational/skilling opportunities. Children in these settings suffer from malnutrition, poor schooling, and limited opportunities for social mobility. They often attend poorly equipped government schools or are forced to drop out to contribute to household income.

India’s urban marginalized and vulnerable populations represent a significant and often overlooked segment of society. Ensuring their inclusion in the country’s urban development is essential for sustainable and equitable growth, while bestowing opportunity and dignity for all citizens as their Right.

Bamboo: The Green Gold for Poverty Reduction and Rural Growth

India has huge natural bamboo stocks that have been an integral part of Indian culture for many millennia. Bamboo in many ways is the mainstay of the rural Indian economy, sparking considerable social and ecological spin-offs. In the early part of the century, large tracts of bamboo occurred in many parts of the country but were treated by the forestry sector (which was then cast in a production forestry mode) as a weed of little economic value and was used mostly by the rural communities for crafts, making implements and as housing material. It was the discovery of bamboo as a source of long-fiber by the Forest Research Institute in Dehradun that started the process of using bamboo in a variety of industrial applications, so far unexplored, with several paper mills and rayon mills being set up. But in the absence of a clear policy there was rapid degradation and decimation of the resource in much of the country. Bamboo resources plummeted so alarmingly that at present the resource is limited to few pockets in the country. Two-thirds of the bamboo in the country is restricted to the North-Eastern Region (NER) while the remaining one-third is spread across the country.

But there is hope for the resurgence of bamboo, and this is based on evidence of significant new and contemporary economic opportunities that have emerged over the past decades. A bamboo revolution that holds the potential of reversing economic downturns and ensuring profitability, is very much possible.  Bamboo is an untapped avenue of economic growth, and a burgeoning bamboo sector can rope in prosperity, profits, and sustainable livelihoods.

Despite the severe degradation of the resource in the past, India still has a considerable growing stock of bamboo, and comparative annual harvest figures[1] still place India at the top of the global league. It is important to realize the considerable latent potential that bamboo has to contribute to economic growth, poverty alleviation, generating employment, rehabilitating vast tracts of degraded land generated due to past agricultural and industrial practices and policies, and revitalizing the social, economic and ecological well-being of rural economies.

In line with this, goals should be aimed at focusing on recovering the resources lost to the rural poor as it has been a natural capital that has helped them to keep their economies afloat even in times of significant cash crunches. Attempts should be made to replenish bamboo stocks, make it economically beneficial to rural communities in a way that it provides them opportunities to earn a sustainable income and improve their standard of living. Efforts should also be made to increase the economic opportunity from the use of bamboo as an industrial raw material, to raise employment opportunities (especially for the educated and unemployed rural youth), and to rehabilitate the degraded lands across the country (making available and productive a natural resource which is increasingly becoming scarce and expensive).

Over the years a variety of strategies have been developed to reduce the poverty of rural and rurban population through small enterprise development, based on various forest produce. In rural areas, the poor are overwhelmingly dependent on natural resources and in most cases, it is the only capital they possess. They have little power or ability to climb out of poverty. They are not only financially poor, but also opportunity-and knowledge-poor. In this respect, bamboo is one of the few natural resources that could provide a lifeline to sagging rural economies and help integrate them into the market economy. As bamboo is not one commodity but the fountainhead of many products, it could open up a number of markets simultaneously for the rural poor with the added advantage of being a low-risk option.

The bamboo sector also forges personal links with the rural community, allowing them to participate closely in production processes and directly access profits through value addition as compared to other industrialized processes. As the sector is dependent to a large extent on manual labour, it demands many hands to contribute to the cultivation, harvesting, preservation and value-added manufacturing processes. The upshot is that it provides livelihood options in varying activities to a large number of rural workers. This is the main reason why developing countries find it more viable to be involved with the sector whereas developed countries prefer becoming consumptive markets for these very products. Women in particular stand to gain from this sector as they secure means of livelihood due to their dexterity with the material and their ability to shape it into products and more important, they gain from the flexible work hours this sector affords. Bamboo can thus break marginalization through empowerment and also bridge gender divides.

Employment generation and livelihood creation are enabled through strong backward integration of bamboo production and processing. Though tree-like in stature, bamboo is best grown and managed like an agricultural crop or managed as such within the forest. This needs labour input, which calls for significant people involvement. Again, volume production in bamboo is achieved through a large number of unit poles, unlike timber where one large log provides a substantial quantity of wood. But on the other hand, the lightweight poles enable people participation in its transport. Furthermore, the easy linear splitting ability of bamboo, quite unlike that of wood, enables primary processing for a final industrial product to be undertaken by the rural community. The above properties lay the economic basis for definite win-win community-industry partnerships in bamboo, with the bamboo being managed or grown, and primary processing undertaken by communities in rural areas.

Experience has shown natural resources can be harvested sustainably if people stand to benefit from it. The development of bamboo as a cash crop will result in the conservation and protection of the existing resource, and the scaling up of cultivation, which would be a natural outcome of the increased cash value of the resource, as against its present low cash to mere-subsistence value. The environmental benefits from the economic development of bamboo can be very significant.

As a resource that can be harvested annually, it could provide a regular supply of construction material to the communities. If the use of wood could be replaced with that of bamboo, it could reverse the process of severe and rapid degradation of forests and forest cover. Bamboo also helps protect soil from erosion, especially in the upland areas. Bamboo should also be strategically grown to reduce or prevent soil cutting from riverbanks, which is perhaps the major cause of siltation of riverbanks, resulting in reduced carrying capacity of rivers and flooding during the peak rainy season.

In last 3-4 decades, intensifying patterns of land and resource utilization, primarily due to pressure from the rapidly increasing population, have caused land and natural resource degradation in many parts of India. Bamboo is an ideal resource for rehabilitation, even in extremely degraded situations such as land used for brick making.

India with its rich potential of bamboo resources has only just started to develop bamboo marketing and trade.  However, the significant bamboo resources in India make it ideally placed to benefit from the experience of China and other countries around the globe. Bamboo holds within it the promise of bailing people out from below poverty line levels.

Bamboo finds many uses today in addition to its conventional uses for handicrafts, scaffolding and the paper industry.  It can be used as construction material, as a wood substitute and as food, fuel and a filtration medium. Its real contribution to housing lies in the dual role it can play – of providing a cheap and affordable wood alternative to the homeless while at the same time generating livelihood options for those involved with it.

Bamboo can propel economic growth through increased local production and the sale of high-value wood-substitute products, especially in bamboo-rich states. Robust local production of a local natural resource capital like bamboo will lead to the retention and circulation of cash within the state economies itself, rather than the cash flowing out for purchase of goods from outside the state. Export of cash value-added bamboo products to markets outside the bamboo states could enable incremental cash earnings that will add to the economic growth of the state. Asset creation and local consumption can get a fillip from the increased circulation of money within the state economy from local consumption of locally manufactured products. This consumption will be enabled not only by government purchases, but also as a result of the higher disposable incomes that will be generated.

In India, as elsewhere in other developing countries, strong correlative linkages exist between economic growth, rural poverty and the environment. Firstly, the poor are more vulnerable to the health effects of pollution because of their inadequate nutrition, poor access to health care and their unhealthy living environment. Secondly, the poor are affected faster by degradation of natural resources because of their greater reliance on them to meet basic needs. Environmental degradation, in turn, adversely affects the economy’s capacity to grow, because growth relies on the sustainable productivity of natural resources and the health of the population.

It is a vicious circle, which can be broken through a growth solution that is not only income generating for rural communities but also environmentally sound. Bamboo, a natural resource and one that protects the environment, enables the development of industries, which function through a symbiotic linkage between small and large enterprise that significantly benefits the community. 

Bamboo is available throughout the country barring the states of Jammu and Kashmir and Rajasthan (except for some areas). Existing traditional bamboo and cane handicraft products, though not many, could be improved, diversified, produced along industrial assembly lines and converted into value-added products that are already a part of mainstream industry. Value additions could be made to its use in the paper industry and its use in the unorganized scaffolding industry can be doubled.  Simultaneously, other mainstream micro and small enterprise products such as matchsticks, pencils, toothpicks, skewer sticks, and blinds, as well as medium-scale industrial panel products that rival wood products, with strong backward community linkages and benefits can be explored. An increase in bamboo products and market opportunities will also result in increases in demand for raw bamboo, besides the production of fresh bamboo shoots and their processed products. There is considerable potential to set up medium and large-scale industries for generating value-added food and wood-substitute products for export markets.

The value-added bamboo industry is ideally placed to adopt that model. Given the right policy atmosphere and thrust, the value-added bamboo industry in India has the potential of reaching a size of USD 2.3 billion (USD 131.5 billion globally) in the next 10 years with a CAGR of 10.3%, employing 11-15 million people in the primary, secondary and tertiary sectors[2].

The bamboo industry also fulfils the criteria needed by sectors that aim to achieve double-digit economic growth. Bamboo has a very strong and direct with rural communities, which would allow them to partake directly and in a more significant way to value addition as compared to other industrialized processes. The value-added bamboo industry thus provides an integrated solution that uses an abundant natural resource that protects the environment and can be processed and generated through community-owned enterprises, both small and large.


[1] INBAR 2002, Market Opportunities Report

[2] https://www.futuremarketinsights.com/reports/bamboo-products-market

Photo Credit: NMBA

Disclaimer: The opinions expressed are those of the author and do not purport to reflect the views or opinions of any organization, foundation, CSR, non-profit or others