144

Chapter No. 04:

Socio-Economic Profile of Marathwada

Region.

Introduction.

Brief Profile of Maharashtra State.

Brief Profile of Marathwada Region.

Population In Marathwada.

Rural And Urban Population.

Density Of Population.

Proportion Of Male / Female Ratio In

Marathwada.

Literacy Rate In Marathwada.

BPL Families in Marathwada Region.

Industrial Development Of Marathwada.

District Wise Income In Marathwada.

Unemployment In Marathwada.

Districts of Marathwada Region.

Characterizes of Marathwada Economy.

Major Causes of Backwardness of Marathwada

Region.

Implementation of SGRY in Marathwada Region.

145

Introduction:

Maharashtra’s economy has witnessed an annual average

growth rate of 8.13 per cent during the decade 2001-10. This is the

third highest growth rate after Haryana and Gujarat which saw an

annual average growth rate of 8.95 per cent and 8.68 per cent

respectively among the non-special category States. Maharashtra

also has the highest average per capita income of Rs. 45,575 among

the non-special category States for the decade 2001-10. In spite of

its affluence, the State historically has had a skewed distribution of

income. This has resulted in regional inequalities within the State,

causing much concern as well as political unrest among the so

called backward regions like Vidarbha which lie in the eastern part

of the State.1

Aurangabad has significant potential for growth in various

manufacturing sectors with Aurangabad District already an

established location for automobile and automobile-related

manufacturing. Aurangabad will be developed as the showcase for

Maharashtra‘s strengths in manufacturing and technology—

automobiles, textiles, apparel, consumer durables, and green

industry and venue for manufacturing-related research and design,

and high-tech hub centrally located within the state. The strategic

location of the Shendra- Bidkin Industrial Area places it at the

convergence of Maharashtra‘s production, manufacturing, and

tourism. The industrial area also has the potential to become a

niche for meetings, incentives, conventions, and exhibitions. It is

expected to be well connected by roads, rail, and air and will have

good connectivity to the ports.2

146

The Shendra- Bidkin Industrial Area will spur demand for a

wide array of spin-off businesses and will offer the full array of

services required for a mega-scale industrial park and the

communities located within it. As such, the Shendra- Bidkin

Industrial Area is expected to generate huge employment and to

add value and exports to the Aurangabad District and Maharashtra

as a whole. The broad vision for the Shendra-Bidkin Industrial

Area is to become a showcase of Maharashtra‘s leading

manufacturing industries‘. The Shendra Bidkin Industrial Area will

be developed as a new industrial township, according to a

comprehensive land use framework of international standards. The

industrial area will offer parks and open space, public

transportation, pedestrian and bicycle trails, and other amenities.

This new industrial township will extend from the additional

Shendra near Shendra Industrial Estate of MIDC to the town of

Bidkin. Located in Shendra just 10–15, kilometers from downtown

Aurangabad and 8 kilometers east of the Aurangabad airport, this

industrial area is envisioned as a new satellite community to the

city of Aurangabad. The industrial location is strategically

positioned and directly connected to the major state highways and

the national rail network. The area will provide direct connections

through the city of Aurangabad on new expressways leading to

National Highway (NH) 211 and the north-south State Highway

(SH) 60. Additional regional roads will be provided to connect

potential future areas of industrial expansion in and around.2

The State is a major contributor to the nation’s economy

accounting for almost 21 per cent of the industrial output, 13 per

147

cent of the national GDP, 13.7 per cent of total factory

employment. Mumbai, the capital is regarded as the hub for

financial and business activities of the country and is the

headquarters of many of the large business establishments and

financial institutions. The city also contributes about 60 per cent of

customs duty collections and around 40 per cent of income tax to

the national exchequer. The state industrial growth rate has

remained at around 10 per cent over the past few years and efforts

are required to push this growth rate by creating an efficient

infrastructure for facilitating sustained industrial production.3

The State’s average annual GSDP for the 10th five year plan

has been around 8.5 per cent. Although Maharashtra is a highly

industrialized state of India, agriculture continues to be the main

occupation of the people. About 61 per cent of the people directly

or indirectly depend on agriculture and allied activities for their

livelihood. The average annual GSDP growth of agriculture and

allied activities sector for the state in the 10th five year plan from

2002 to 2007 has been around 2.7 per cent, which is less than the

growth of 3.7 per cent achieved in the 9th five year plan. The

slowdown in the state agriculture output is acting as a bottleneck

for the overall economic growth of the State. Maharashtra is rated

as one of the most preferred investment destination in the country.

Though Maharashtra receives a higher number of investment

proposals, the state lags behind Gujarat in terms of the actual

implementation of such proposals due to infrastructural

deficiencies and lack of measures to facilitate smoother project

implementation.

148

Most of the regions of Maharashtra come under rain fed

conditions. Twenty out of the total thirty districts, covering more

than twenty thousand villages, are classified as drought stricken.

The current irrigation cover of Maharashtra stands at around 20

per cent (19.20%) which is less than the national average of 38 per

cent. Hence excluding a few regions having availability of irrigation

cover, much of the state agriculture depends on the vagaries of

monsoon resulting in low productivity and cropping intensity. As a

result, the incidence of rural poverty (31%) in the state is still above

the national average. Despite a long experience of employment

guarantee scheme, the state is far from meeting the requirements

of rural infrastructure for its agriculture and allied sectors.

Majority of the agriculture in the state being seasonal, the issue of

employment becomes more acute. As a result of the drought

stricken rural economy of the state and the lack of policy efforts

and targeted public investment the state of Maharashtra has

become one of the worst affected regions of suicides by farmers in

the country.4

Average annual rainfall of these districts is limited with

major parts having no irrigation coverage. Hence, despite

concerted efforts of targeting poverty through national planning,

an estimated 301.72 million of Indians still remain in poverty

where the state of Maharashtra is not an exception to it. The

decline in poverty from 36 per cent in 1993-94 to 27.5 per cent by

2004-05 has been much less than was anticipated. 28.3 (220.92

million persons) of rural whereas 25.7 per cent (80.79 million

persons) of urban population of India and around 32 (rural) and 27

per cent (urban) of Maharashtra cannot afford to spend Rs.356.30

149

and Rs.538.68 on their monthly consumption as determines the

poverty line. GDP oriented economic transformation of the country

and the state during the economic reforms has widened the gap

between rich and poor. All the nine districts that have been covered

under the present study are characterized by scanty rainfall and

limited irrigation cover. Same is the story about other socio-

economic characteristics such as income, employment, poverty,

rural electrification, health and water availability.5

The object of this chapter is to study historical background,

location of the area, socio-economic situation, population, and

business, agricultural, industrial and banking development in the

Marathwada region. A revive of infrastructure facilities, education

facilities, marketing facilities, transportation facilities, etc. has also

been taken into consideration.

Brief Profile of Maharashtra State:

Maharashtra is the second largest state in India both

in terms of population and geographical area spread over 3.08

lakh sq. km. The State has a population of around 10 crore (2001

Census) which is 9.4 per cent of the total population of India.

The State is highly urbanized with 42 per cent people residing in

urban areas whereas at national level it was around 28 per cent.

The sex ratio of the State is 922 as against 933 for India. The

State has 35 districts which are divided into six revenue divisions

viz. Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur

for administrative purposes. The State has a long tradition of

having very powerful bodies for planning at the district / local

level. For local self- governance in rural areas, there are 33 Zilla

150

Parishads, 351 panchayat samitis and 27,935 Gram Panchayats.

The urban areas are governed through 22 Municipal

Corporations, 222 Municipal Councils, 3 Nagar Panchayats and 7

Cantonment Boards.6

Table No. 4.01:

Facts of Maharashtra State:

Date of

Formation

1st May 1960

Size 307,713 sq km

Population 112,372,972

Capital Mumbai

Rivers Godavari, Penganga, Bhima, Varna, Parvara,

Mula

Forests &

National Park

Pench NP, Tadoba NP, Nagzira NP,

Nawegoan NP, Devlagaon NP, Gugamal NP

Languages Marathi

Neighbours State Madhya Pradesh, Gujarat, Andhra Pradesh,

Karnataka, Goa, Chhattisgarh , Dadra and

Nagar Haveli

State Animal Indian Giant Squirrel

State Bird Yellow-footed Green Pigeon

State Tree Mango

State Flower Lagerstroemia

Source: http://www.mapsofindia.com

151

Brief Profile of Marathwada Region:

Marathwada is under development in Maharashtra in its

numerical strength, the population of the Marathwada is unique.

The languages, manners, costumes, dresses and modes of living

have made the region attractive from the standpoint of human

studies. The region professes almost all-major religions of the

country. It has an unbroken continuity covering millennia and

posses socio-cultural traditions which features distinct in many

ways from other regions. Marathwada has its hoary past. It has

been the cradle of civilization art, architecture and culture

represented by Ajanta & Ellora. The Bombay-Pune, the birthplace

of modern industrial system was inhabited by entrepreneurs, while

Marathwada was known for its undeveloped economy till the

beginning of nineties.7

The economic history of Marathwada up to 1960 A.D. gives

ample evidence of the poverty of people, through the poverty of

those times cannot be fully compared to the modern economic

prosperity. Only with the advent of the new Govt. policies of 1980

and which were mainly designed in their own interest, the

Marathwada attain its stability to move with the industrial trends.

Nizam’s rule, in Marathwada no doubt, brought in-stability in

administration had never cared for the well being and prosperity of

the people. At the dawn of eighties Marathwada was known as the

one of the backward regions of the state. Mass poverty and

illiteracy scourged the entire region. The regional leaders and the

government had the gigantic task of removing the poverty and

misery of the millions and also farming the right policies for the

152

rapid and planed economic development of Marathwada. What is

true of Indian agriculture is also true for Marathwada and hence,

the chapter starts with discussion on development of agriculture in

India.8

The term Marathwada is derived from the word Bara-hatti-

vada (Bar-hat-vada) meaning country of Dhangars. Marathwada is

the region comprising the eight districts of Jalna, Aurangabad,

Parbhani, Hingoli, Nanded, Latur, Osmanabad and Beed. It

accounts for 16.84 per cent of the state's population and is home to

nearly 30 per cent of the state's Below Poverty Line families. Its per

capita GDP is Rs 10,373 -- a good 40 per cent below the state's per

capita GDP of Rs 17,029 -- and contributes just 8 per cent of the

state's industrial output. Its literacy rate is the lowest in the state.

All eight districts figure in the list of the 100 poorest districts in the

country. Perhaps, the most neglected region of Maharashtra.9

Marathwada was part of the former Hyderabad state of India

until November 1, 1956, when it was transferred to Bombay state,

which in 1960 was divided into Maharashtra and Gujarat. India

became Independent on 15th August, 1947 but Marathwada joined

independent India on 17th September 1948.On this day, the Indian

Army liberated the Hyderabad state from Nizam's rule in a military

operation referred as Operation Polo, also popularly known as

Police Action. The Nizam had refused to become a part of

Independent India and was torturing Hindu community through

Muslim extremists known as 'Razakars'.17th September is

celebrated as Marathwada Mukti Din. Despite recent industrial

developments, the region remains the most backward region of

153

Maharashtra. Human Development Index (HDI) using the United

Nations Development Programme (UNDP) methodology for the

year 2000 highlights the backwardness of the districts of

Marathwada. None of the Marathwada districts are in the list of

above-the-State’s average attainment.10

Table No. 4.02:

Geographical Information of Marathwada.

Sr. Name of Geographical Talukas Villages Population Literacy

No. District.

Area

( Sq.K.M.) Census -2001 Rate

Male Female %

1 Aurangabad 8,900 9 1,250 15,21,632 13,98,916 73.63

2 Beed 11,085 12 1,269 11,20,664 10,39,177 68.48

3 Hingoli 5,521 5 662 5,05,188 4,81,529 66.86

4 Jalna 7,405 8 956 8,25,977 7,86,380 64.40

5 Latur 7,304 10 936 10,74,321 10,03,916 72.34

6 Nanded 10,528 16 1,580 14,76,301 13,91,857 68.52

7 Usmanabad 7,510 8 722 7,62,947 7,09,309 80.60

8 Parbhani 5,520 9 1,480 7,61,937 7,29,172 80.58

Source: Intellectual’s Sandharbh Maharashtra Vol. I.

On 1st November 1956, Marathwada region was merged in

Maharashtra state. Even at that time, the old acts were enforced in

the Municipal councils of Marathwada region. To remove the

difficulties in this situation only one act was formed for all the

Municipalities in Maharashtra, which is popularly known as, ‘The

Maharashtra Municipalities act of 1965’.

154

Population In Marathwada:

Natural and human resources are considered essential for

the economical development of the country. The size of population

and its depth have certain effects on the economy. Population is

important component for the economical development.

Table No. 4.03:

District wise Population in Marathwada (2001)

Sr.No.

DistrictTotal

PopulationMale Female

10 yearIncrease

(1991-2001)

1. Aurangabad2897013

(3.02)1505363 1391650 31.93

2. Jalna1612980

(1.67)826903 786077 18.17

3. Parbhani1527715

(1.54)780191 747524 15.31

4. Hingoli987160

(1.02)505373 481787 19.76

5. Beed2161250

(2.23)1116356 1044894 18.54

6. Nanded2876259

(2.96)1481358 1394901 23.08

7. Osmanabad1,486586

(1.52)769368 717218 15.35

8. Latur2080285

(2.15)1075257 1005028 23.95

Source: Basic Developmental Statistics of the Marathwada

Region, SRTM Research Institute, Aurangabad (2007).

155

Table No. 4.03 shows the district wise population of

Marathwada division according to census of 2001 and Marathwada

had the 15629248 population compared to total population of

Maharashtra (96,752,247). The average of population in

Marathwada is 16.11 percent compared with total population.

Comparing district wise population the largest figure is found for

Aurangabad district while lowest figure is for the Hingoli district.

Comparing same with the total population of Maharashtra, it is

about 3.02 percent and 1.02 percent respectively. Total males

population in the Marathwada region are about 8060169 while

largest figure of the males is in Aurangabad district while Hingoli

district has the lowest figures of male’s population. Marathwada

has about 7569079 females and Aurangabad district had largest

numbers of females while again Hingoli district has the lowest

figures of females. 10 year increase in population from 1991 to

2001 is average 21.78 percent which is about 21.30 percent for

Maharashtra. Comparing with Maharashtra, increase of population

in Marathwada region is higher. The largest figures of increase in

population in Marathwada are for Aurangabad district i.e. 31.93

percent while lowest one is found in Parbhani district which is

15.31 percent.

Rural And Urban Population:

The proportion of rural and urban population shows the

development in the area. Growing population in urban area is

deemed as the indication of economical development.

Industrialization causes to grow the cities. Speed of civilization

depends on the industries, trade, transportation, communication

etc. As there is emigration from rural areas to urban areas, urban

population has increased.

156

Table No. 4.04:

Rural and Urban Population (2001)

Sr.

No.District

Rural

Population

Urban

Population

Total

Population

1. Aurangabad1809863

(62.78)

1087150

(37.22)

2897013

(3.02)

2. Jalna1305115

(80.96)

307 865

(19.04)

1612980

(1.67)

3. Parbhani1042529

(67.47)

485186

(32.53)

1527715

(1.54)

4. Hingoli833130

(84.39)

154030

(1.61)

987160

(1.02)

5. Beed1774180

(82.08)

387070

(17.92)

2161250

(2.23)

6. Nanded2187175

(75.98)

689084

(24.02)

2876259

(2.96)

7. Osmanabad1253330

(84.17)

233256

(15.83)

1486586

(1.52)

8. Latur1590024

(76.42)

490261

(23.58)

2080285

(2.15)

Marathwada

Region

11795346

(75.42)

3833902

(24.58)15629248

Maharashtra

State

555,732,513

(57.06)

41,019,734

(42.94)96,752,247

Source: Aurangabad Division at a Glance, Economy and Statistical

Directorate, State of Maharashtra, Regional Office, Aurangabad

(2007).

157

Table No. 4.04 shows the proportion of rural and urban

population. Out of total population in the Marathwada region,

75.42 percent population resides in rural areas while urban area

had the 24.58 percent population. In the same year Maharashtra

State had the population of 57.06 percent in rural areas while

urban areas had 42.94 percent population. In 2001, comparing

with total population to district wise population, largest number is

for Beed district (84.39%) while the lowest figure is for

Aurangabad district (62.78%). The largest urban population is of

Aurangabad district (37.22%) while the lowest population is for

Hingoli district (15.61%).

Density Of Population:

Density is the average of people residing in per sq. km.

Compared with rural areas urban area has the largest population.

In Marathwada region there are 240 peoples per sq. km. In state of

Maharashtra there are 314 peoples residing in per sq. km.

Compared to average density of population, density of population

for Maharashtra state is higher.

158

Table No. 4.05:

Density of Population in Marathwada

Sr. No. District Density (Per Sq. Km)

1. Aurangabad 287

2. Jalna 209

3. Parbhani 235

4. Hingoli 218

5. Beed 202

6. Nanded 273

7. Osmanabad 197

8. Latur 290

Marathwada Region 241

Maharashtra State 315

Source: Aurangabad Division at a Glance, Economy and Statistical

Directorate, State of Maharashtra, Regional Office, Aurangabad

(2007).

Table No. 4.05 shows that, Marathwada had density of 241

peoples per sq. km. in 2001-2002. The largest density of

population in Marathwada region is 290 for Latur district while

lowest density of population is for Osmanabad district which is

197. All district of Marathwada carry lowest figures compared to

average density of population in Maharashtra state.

159

Proportion Of Male / Female Ratio In Marathwada:

It is important to note what the proportion of male-females

in the structure of population (females compared to 1000 males).

Proportion of male-females is very important regarding social

issues like marriage, existence of family system etc. If there is gap

between the proportion of male and females, social problem can

arise.

Table No. 4.06:

District wise proportion of male-females in Marathwada

(2001)

Sr.

No.District

Proportion of Females

to 1000 males

1. Aurangabad 919

2. Jalna 952

3. Parbhani 957

4. Hingoli 953

5. Beed 927

6. Nanded 943

7. Osmanabad 930

8. Latur 934

9. Marathwada Region 936

10. Maharashtra State 922

Source: Aurangabad Division at a Glance, Economy and Statistical

Directorate, State of Maharashtra, Regional Office, Aurangabad

(2007).

160

Table No.4.06 shows the proportion of male-females in the

Marathwada region. In 2001 there were 936 females compared

with 1000 males in the Marathwada region while same proportion

in Maharashtra state was 922. As compared with Maharashtra,

Marathwada has large proportion of male-females. Comparing

district wise proportion of male-females in Marathwada region,

Parbhani district has largest numbers (957) while Aurangabad

district has the lowest numbers (919).

Literacy Rate In Marathwada:

While considering qualitative side of population, literacy is

very important issue. According to census of 2001, persons above

seven years able to read and write are considered as “literates.”

Maharashtra has growing rate of literacy in each decade. After the

establishment of Maharashtra State, literacy rate in male and

females has been increased. For the dissemination of literacy there

are constant attempts of government through adult education,

adult literacy etc. Literacy rate has been increased as the result of

economical development, dissemination of primary education and

enrolling for the education. Education is not yet reached up to

scheduled tribes and castes living in the Marathwada region. Tribal

area and particularly tribal part of Marathwada and Vidarbha has

lowest literacy rates.

161

Table No. 4.07:

Literacy Rate in Marathwada Region (2001 Census)

Sr.

No.District

Total

(%)

Proportion

of Male

Literacy

(%)

Proportion

of Female

Literacy

(%)

Proportion

of Rural

Literacy

(%)

Proportion

of Urban

Literacy

(%)

1. Aurangabad 73.63 85.09 61.28 67.92 83.03

2. Jalna 64.52 79.17 49.25 61.85 75.82

3. Parbhani 67.04 80.58 52.98 62.26 76.79

4. Hingoli 66.86 81.11 51.96 64.85 76.06

5. Beed 64.48 80.69 55.38 65.75 80.84

6. Nanded 68.52 81.14 55.12 64.28 78.61

7. Osmanabad 70.64 82.03 57.55 68.20 80.95

8. Latur 72.77 83.63 60.26 69.54 81.33

9.Marathwada

Division62.77 73.87 50.09 66.99 55.91

10.Maharashtra

State77.27 86.27 37.51 70.84 85.76

Source: Aurangabad Division at a Glance, Economy and Statistical

Directorate, State of Maharashtra, Regional Office, Aurangabad

2007.

Table No. 4.07 shows district wise literacy rate n

Marathwada Division. Proportions of literacy in Male-Females and

literacy in rural as well as urban areas also have been shown.

Average literacy rate of State of Maharashtra is greater than

Marathwada Division. Literacy rate in Marathwada is 62.77

percent while Maharashtra State has 77.27 percent rate of literacy.

Briefly, Marathwada is left behind as compared literacy rate of

Maharashtra State. The largest literacy rate in Aurangabad district

of Marathwada is 85.07 percent while lowest literacy rate is 79.17

162

percent for Jalna district. The largest literacy rate in females is for

Aurangabad district which is 61.28 percent while lowest literacy

rates of females is for Jalna district i.e. 49.25 percent. Rural

population in Marathwada division was 70.84 percent out of which

Latur district has the literacy rate of 69.84 percent. The lowest

literacy rate was in Jalna district which is 61.85 percent. Urban

literacy rate of Marathwada was 55.91 percent while largest urban

literacy rate was for Aurangabad district (83.03 percent) and

lowest literacy rate was for Jalna district (75.82 percent).

Table No. 4.08:

Human Development Index of Marathwada:

Sr.

NoDistricts HDI 2000 Rank

01 Aurangabad 0.57 12

02 Beed 0.47 18

03 Latur 0.47 19

04 Parbhani 0.43 24

05 Hingoli 0.43 25

06 Osmanabad 0.38 28

07 Nanded 0.37 29

08 Jalna 0.27 33

(Source: Human Development Report of Maharashtra.)

About 95 per cent of agriculture land of Marathwada is dry

land farming. It is the least urbanized area in Maharashtra with 80

per cent of the population living in rural areas. About 30 per cent

of the population in Marathwada region is below poverty level. Its

per capita GDP is only Rs. 14,220 (US$ 316). The literacy rate is

the lowest in the state – 65 per cent with only 55 per cent literacy

163

among women. All eight districts in the region figure in the list of

the 100 poorest districts in the country. Maharashtra is growing as

a State but Marathwada is not keeping pace with it.

Marathwada’s share in GDP is only 10 per cent.

Incidence of poverty is more here.

The average per capita income is Rs. 29,000 for state, but

hovers in the range of Rs. 12,000 to Rs. 20,000 for districts

in the region.

Only Aurangabad, with per capita income of Rs. 19,365, is

better placed.

Financial reforms are needed for bettering fortunes of the

region.

Table No. 4.09:

District wise Commercial Banks in Marathwada

Sr.No.

District Total No.of bank

Branches

CooperativeBanks

Deposits(Rs. inCrores)

Loan(Rs. inCrores)

1) Aurangabad 116 138 1366 1250

2) Jalna 127 72 216 313

3) Parbhani 131 111 415 481

4) Hingoli 56 46 424 182

5) Beed 102 71 1033 -

6) Nanded 96 79 369 999

7) Latur 130 106 508 696

8) Osmanabad 122 100 1020 14

Marathwada 880 723 5351 3935

Source: Aurangabad Division at a Glance, Economy and Statistical

Directorate, State of Maharashtra, Regional Office, Aurangabad

(2007).

164

Table No. 4.09 shows district wise commercial banks,

deposits and loans by them in Marathwada division. Marathwada

division had 1014 branches of commercial banks and largest

number for the same was for Aurangabad district (302) while

Hingoli district has the lowest figures (72). Marathwada had 745

cooperative banks and largest figure for the same was for Nanded

district (212) while Hingoli district has the lowest figure of 7.

Commercial Banks had accepted total deposits of Rs. 5522 Crores

in Marathwada and largest deposits were accepted by the banks in

Aurangabad district (1646 Crores) while Hingoli had the lowest

figures of 211 Crores. There is loan approval of 3915 Crores for

Marathwada and Aurangabad district has the largest figure (1250

Crores) of the same while Osmanabad district has the lowest

figures (14 Crores).

BPL Families in Marathwada Region:

The individuals failing to comply with the demands of his

family from his income, is categorized under the below poverty

line. The line of per capita income in the country considered as

“Poverty Line.” The population living below the line of per capita

income is termed as below poverty line peoples. There are 34.45

percent families living below poverty line in Maharashtra while

Marathwada has same proportion of 21.27 percent.

165

Table No. 4.10:

District wise BPL Families in Marathwada

Sr.

No.

District Total

Families

BPL

Families

Percentage

1) Aurangabad 383837 110190 28.7

2) Jalna 274315 105188 38.34

3) Parbhani 240586 80020 33.26

4) Hingoli 172092 59140 34.36

5) Beed 415120 100656 24.24

6) Nanded 450654 137843 30.58

7) Latur 329206 98136 29.82

8) Osmanabad 284290 93305 32.82

9) Marathwada 2550150 808088 31.51

Source: Human Development Report Maharashtra 2002,

Government of Maharashtra.

Table No. 4.10 shows the percentages of district wise total

BPL families during the year 200-08. Out of total families 2550150

in Marathwada there are 31.51 percent peoples living under BPL.

Compared to Maharashtra, Marathwada has the lowest proportion

of families living under BPL. The largest number of families living

under BPL is in Jalna district (38.34%) while Aurangabad district

has the lowest figure for the same (28.70%).

166

Industrial Development Of Marathwada:

The economic development of any state or region is related to

the industrial development of the state. The industrial

development of any state brings about an increase in the

production of the state. It increases the employment opportunities

and employment in the state and which brings about an

improvement in the standard of living of the people. This

ultimately results in bringing about the economic development of

the state as a whole. The industrial development of Marathwada is

not uniform. Some parts of Marathwada are more developed and

some are lagging behind. This has resulted in bringing about an

unbalanced localization of industries in Marathwada. This

unbalanced or unequal localization of industries in Marathwada

has generated some problems.11

Table No. 4.11: District wise Industries in Marathwada

Sr.

No.District

Running

Industries

(Regd.)

Sugar

Industries

(Working)

Spinning

Mills

1) Aurangabad 780 8 1

2) Jalna 158 4 4

3) Parbhani 185 3 2

4) Hingoli - 3 1

5) Beed 101 7 6

6) Nanded 269 7 4

7) Osmanabad 54 7 5

8) Latur 155 10 3

Marathwada 1702 49 26

Source: Basic Development Statistic of the Marathwada Region,

SRTM Research Institute, Aurangabad (2003).

167

Table No. 4.11 shows district wise number of industries

ending 31st March 2001 in Marathwada region. There are 10, 071

registered small industries and the largest number of small

industries is in Aurangabad district (32.52%) while the lowest

number of 135 small industries is in Hingoli district (1.34%). The

medium industries working in Marathwada region is 302 and the

largest number of 1973 medium industries is in Aurangabad

district (65.23%) while lowest number of 10 industries for the same

is in Beed district (3.31%). There are total 35 working sugar

industries in Marathwada and Aurangabad, Beed and Nanded

districts had the 6 largest numbers of sugar industries (17.74%)

while the lowest numbers of 2 sugar industries were in Parbhani

and Osmanabad district (5.11%). Briefly, out of total 128 working

sugar industries in Maharashtra, Marathwada has 35 (27.5%)

working sugar industries. Out of 230 spinning mills in

Maharashtra, Marathwada had 38 spinning mills and Beed district

hold the largest number of spinning mills. Briefly, to eradicate the

imbalance in Marathwada region, all districts in Marathwada

except Aurangabad should promote the industrialism.

168

District Wise Income In Marathwada:

Considering area wise income, it includes primary secondary

and third type of areas. Table No. 4.12 shows the details of region

wise income percent during the year 2001-2002.

Table No. 4.12:

Area wise District Income in Marathwada Region

Sr.

NoDistrict

1990 -2000 2001- 2001

Primac

y

Sector

Secondar

y Sector

Third

Sector

Total

(NDPP)

Primacy

Sector

Second

ary

Sector

Third

Sector

Total

(NDPP)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

1) A’bad 3.39 3.43 1.93 2.60 2.20 3.48 1.96 2.39

2) Jalna 1.80 0.55 0.82 0.92 2.08 0.57 0.81 0.95

3) Parbhani 1.99 0.46 0.83 0.94 1.83 0.54 0.85 0.93

4) Hingoli 1.06 0.32 0.56 0.58 1.81 0.38 0.56 0.61

5) Beed 3.69 0.73 1.22 1.53 2.96 0.81 1.23 1.40

6) Nanded 2.56 1.06 1.66 1.66 2.49 1.14 1.66 1.66

7) O’bad 2.07 0.44 0.75 0.90 1.74 0.48 0.75 0.84

8) Latur 2.16 0.64 1.13 1.18 2.09 0.69 1.25 1.18

Marathwada

Region

18.73 7.32 8.90 10.30 16.59 8.09 8.96 9.95

Maharashtra

State

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Source: Basic Development Statistic of the Marathwada Region,

SRTM Research Institute, Aurangabad.

Table No. 4.12 shows statistical details of district wise flat

income during the years 1999-2000 and 2001-2002. The said

details are shown according prevailing prices in form percentage of

state income. During 1999 – 2000 net flat district income was

10.30 percent of Maharashtra State but during 2001-2002 it was

decreased up to 9.95 percent. During 1999 – 2000 the share of

district flat income in primary sector Marathwada was 18.73

percent compared to Maharashtra. During 2001-2002 it was

169

decreased up to 16.59 percent. In this sector Beed district carried

the largest share of income while the Hingoli district had the

lowest income share. During 1999 – 2000 share of Marathwada in

secondary sector was 7.62 percent compared to Maharashtra which

was increased in 2001-2002 and reached up to 8.09 percent. In

this sector Aurangabad district carried largest share while lowest

share had carried by the Hingoli district. Briefly, there is growth

trend in income of secondary sector. During 1999- 2000 share of

Marathwada in third sector was 8.90 percent of Maharashtra

which was increased during 2001-2002 and reached up to 9.85

percent. The largest share in this sector was credited to

Aurangabad while Hingoli district hold the lowest share in this

sector. Briefly, there is growth trend in income of third sector.

Unemployment In Marathwada:

Across whole country crisis of unemployment is blazing and

there are many evils of unemployment. Opportunities of

employment are decreasing as the result of globalization,

mechanism and use of computer while on other hand there is great

growth in population and the as the extension of educational

facilities, number of unemployed youth is increasing. No

government had been succeeded to provide full salaried

employment to the unemployed. The population in Marathwada

sector is increasing rapidly which cause the increase in

unemployment. The greater population in the country is the reason

of unemployment. “When a person willing to work is not bestowed

with opportunity to serve is termed as the unemployed person.” As

the result of idle policies of central government, number of

unemployed persons is increasing.12

170

Table No. 4.13:

Number of Registered Educated Unemployed in

Employment and Self Employment Offices in

Marathwada

Sr.

No.District SSC HSC ITI

Diploma

HolderGraduate

Post

GraduateTotal

1) Aurangabad 84237 13776 1959 877 7117 87 108053

(20.56)

2) Jalna 32029 4235 1010 367 3176 NA 40817

(7.77)

3) Parbhani 31029 6002 1007 40 2704 21 40920

(7.79)

4) Hingoli 23271 3601 736 44 2072 13 29737

(5.66)

5) Beed 41458 14980 1778 677 8393 260 68546

(13.04)

6) Nanded 86705 12000 1935 360 6520 50 107570

(20.47)

7) Latur 43533 16636 1486 359 7484 40 69840

(13.29)

8) Osmanabad 40602 10796 838 381 7369 27 60013

(11.42)

Marathwada

Region

382881

(72.86)

85028

(15.61)

11849

(2.25)

3405

(0.65)

44835

(8.53)

498

(0.10)

525496

(100.00)

Source: Division Office of Employment & Self Employment,

Aurangabad. (Note - Numbers in bracket shows the percentage).

Table No. 4.13 shows the statistical details of the number of

registered educated unemployed person with Divisional Office of

Employment & Self Employment ending 31st December 2003. The

details in the above table include the data of unemployed person

having education of SSC, HSC, ITI, Graduate and Post Graduates.

Ending December 2003 the total number of unemployed in

Marathwada was 5, 25,496 while there were 3, 82,881 (72.86%)

SSC unemployed persons, 82028 (15.61%) HSC unemployed

171

persons, 11849 (2.25%) ITI educated unemployed, 3405 (0.65%)

Diploma holder unemployed, 44835 (8.53%) Graduate

unemployed and 498 (0.10) post Graduate unemployed persons.

The largest number of unemployed youth was in Aurangabad

district (20.56%) while Hingoli district has the lowest number of

educated unemployed (5.66%).

Table No. 4.14 shows the statistical details of unemployed in

Marathwada region registered with Divisional Office of

Employment and Self Employment.

172

Table No. 4.14:

Unemployed in Marathwada Region Registered with

Office of Employment & Self Employment (2004)

Sr.

No.District

Registered

Male

Unemployed

Registered

Unemployed

Females

Total

Registered

Unemployed

1) Aurangabad 93, 848

(78.80)

25, 254

(21.20)

1, 19, 102

(20.41)

2) Jalna 46, 699

(87.50)

5, 814

(12.50)

46, 513

(7.97)

3) Parbhani 36,044

(88.30)

4, 777

(11.70)

40, 821

(7.00)

4) Hingoli 30, 128

(88.32)

3, 984

(11.68)

34, 112

(5.85)

5) Beed 71, 594

(87.16)

10, 545

(12.84)

82, 139

(14.08)

6) Nanded 92, 000

(79.57)

23, 620

(20.43)

1, 15, 620

(19.81)

7) Latur 65, 253

(83.22)

13, 160

(16.78)

78, 413

(13.44)

8) Osmanabad 57, 549

(86.20)

9, 215

(13.80)

66, 764

(11.44)

Marathwada

Region

4, 87, 115

(83.48)

96, 369

(16.52)

5, 83, 484

(100.00)

Source: Divisional Office of Employment & Unemployment,

Aurangabad. (Note: Number in bracket shows the percentage with

total numbers).

173

Table No. 4.14 shows the statistical details of registered

unemployed in Marathwada region ending 30th April 2004.

According to data available with Divisional Office of Employment

& Self Employment, there are total 5, 83, 484 registered

unemployed out of which there are 4, 87, 115 (83.48%) male

unemployed while female unemployed are amount up to 96, 369

(15.52%). The largest number of 1, 19, 102 (20.41%) registered

unemployed was in Aurangabad district while lowest number of

the same was in Hingoli district 34,112 (5.85%). Out of total

registered unemployed the largest number of males was in

Aurangabad district (93,846) while the lowest number of

unemployed males was in Hingoli district (30,128). There is largest

number of unemployed females in Aurangabad district (25, 254)

while Hingoli district (25, 254) had the lowest number female

unemployed persons. Besides above figures by Divisional Office of

Employment & Self Employed, same office has registered 11,023

unemployed from University out of which there are 9,276 males

(84.15%) while there were 1,747 (15.85%) female unemployed.

Before 1998 to promote the self employment guidance camps were

arranged. But since 1998, Central Government has ceased yearly

grants for the same which causing the increase in numbers of

unemployed persons. Unemployed persons are registered with

Office of Employment & Self Employment. The objective of which

is not to allot the employment but to help in this regard and extend

guidance for self employment. To solve the problem of

employment Government of Maharashtra has declared a new

policy of Employment & Self Employment in October 2000 under

the new policy it will attempt to bring about employment by

establishing the societies of unemployed persons from 2001.

174

Government has the policy to promote unemployed person

individually or in group manner for the employment.Office of

Employment & Self Employment extends guidance in the business

and employment sector. This office implements various schemes

like “Annasaheb Economically Backward Development

Corporation” and “Moulana Azad Minority Economical

Development Corporation” for the promotion of self employment.

This office gives information on various loan schemes of other

corporations.

Districts of Marathwada Region:

1. Aurangabad District: Aurangabad is the capital of

Marathwada. The city has excellent growth potential due to

ever increasing industrial houses and tourism industry. The

city has become a center of attraction for both the population

of Marathwada as well as the state of Maharashtra and

beyond that. This has definitely increased the pressure on

providing better education facilities in general and technical

education in particular. Which goes without saying that, the

professional education is essential for social, economical and

political growth of the city. Aurangabad, the capital of

Marathwada region of Maharashtra, is famous for its rich

cultural heritage as well as for the pioneered educational

development in the region. Eminent educationists include

Bharatratna Dr. Babasaheb Ambedkar, Late

Padmavibhushan Govindbhai Shroff and Dr. Rafique Zakaria

who established some of the earliest institutions of higher

education in the city, and it is the vision of these luminaries

that has gone on to shape the educational landscape of the

175

region. From under the Nizam rule in the erstwhile

Hyderabad State to the present scenario of globalization,

Aurangabad has always stood up to face the challenges of

every era. Newer courses have been introduced from time to

time, and the latest technological developments have been

incorporated in the education sector.13 Moreover,

Aurangabad still continues to strive to meet the challenges of

modernization and globalization, and maintain excellence in

higher education envisioned by the illustrious educationists

of yesteryears. Aurangabad district has 66 colleges of higher

education imparting knowledge at various levels. Though

these colleges are doing commendable work, there is a need

to refurbish the facilities and processes so as to be updated

with the changing times, and to attract a greater number of

students to courses in higher education.

2. Parbhani District: Parbhani is one of the eight districts of

Marathwada region in Maharashtra state of India. It was

previously known as, Prabhavatinagar. Known for its dense

populations - Parbhani city is headquarter of this district.

District Parbhani is also known as Land of Saints because

there were several saints from this part of Maharashtra.

Some of the very famous saints are Namdeo from Narsi and

Janabai from Gangakhed. Even the well known

mathematician Bhaskara is from Parbhani district. The

entire Marathwada region was formerly ruled by the Nizam.

Earlier, Parbhani district was a part of Hyderabad state but

after the reorganization of Indian states it became part of

Bombay state. Later in the year 1960, it was merged into

176

present Maharashtra state. Parbhani covers 6250 sq kms of

land mass and is located at an average height of 357 m above

sea level. It lies between 18.45o and 20.10o North latitudes

and 76.13o and 77.39o east longitudes.14 The district is

enveloped by Hingoli district in the north, by Nanded district

in the east, on the south is Latur and Beed towards west. It is

noteworthy that Parbhani is well connected to all the main

cities and with the state capital Mumbai.

3. Beed district: Beed district is one of the major

administrative districts in Maharashtra state in India. It is

located at Beed which is also known as Bhir falls under

Aurangabad division. It spans an area of 10, 693 sq. kms. The

noted population is more than two millions of which 17.9

percent is urban. Beed has list of many historical events

associated with it. It was known as, 'Champavati nagari' in

the ancient times. The city manifests many historically

significant monuments and city protection gates. This

Marathwada kingdom was under the Nizams till the 19th

century and was later, undertaken into the Indian Republic.

Evidences show that the name 'Bhir' was given by

Mohammad Tughlaq. The district is sub divided into eleven

talukas – Beed, Ashti, Patoda, Shirur, Georai, Ambajogai,

Wadwani, Kaij, Dharur, Parli and Majalgaon.15

4. Osmanabad District: Osmanabad District, with the other

fourth districts of the Marathwada, was formerly a part if the

Nizam’s State. After the Reorganization of the States in 1956

the region was included in the then Bombay State into

177

Maharashtra and Gujarat in 1960, Osmanabad along with the

other districts of Marathwada has become an integral part of

Maharashtra. Osmanabad District is one of the eight districts

of Marathwada Region of Maharashtra State. Osmanabad

town is the district headquarters. Osmanabad & Bhoom are

Revenue Sub-divisional headquarter. Osmanabad, Tuljapur,

Omerga, Lohara, Kalamb, Bhoom, Vashi and Paranda are the

eight taluka of the district. The district is surrounded by the

Balaghat mountain hills. Omerga & Paranda blocks are

situated at plains whereas all other blocks are surrounded by

the Balaghat Mountain. The District is located at an average

height of 600 meters from the sea level. Total area of the

district is 7512.4 sq.km. Osmanabad district is located in the

southern part of the state of Maharashtra. Most of the area of

the district is surrounded by Small Mountain called

"Balaghat". Bhoom, Washi, Kalamb, Osmanabad & Tuljapur

Tahsil lie in the range of this Balaghat Mountain. The district

is surrounded by Solapur to the south-west, Ahmednagar to

the North-West, Beed to the North, Latur district to the East

and Bidar& Gulbarga districts of Karnataka to the South.

Osmanabad along with the other four districts of the

Marathwada region was formerly a part of the Nizam’s State.

After India got its freedom in 1947 the reorganization of

various princely states was carried out. In 1960, Osmanabad

along with the other districts of Marathwada became an

integral part of Maharashtra. Today Osmanabad is a full-

fledged district of Maharashtra playing significant role in

various aspects of the state.16

178

5. Jalna district: Located in the Indian state of Maharastra,

Jalna district is one of the popular tourist spots in India. This

district covers a total area of about 7,612 square kilometers.

Jalgaon lies close to Jalna district. One can refer to the Jalna

District Map to know in-detail about the National Highway,

district boundary, district headquarter and many other

significant things.17 The Economy of the Jalna district is

based on Agriculture and Agrio-industries, as the 85 % of the

geographical area is under agricultural use. Out of the total

7,61,200 Hectares of the geographical area, 6,51,553 Hectare

of land is under agricultural use. As per the Directorate of

Economics & Statistics, Govt. Of Maharashtra, The Estimate

Income of the Jalna district from 2004-05 to 2009-10 is as

below.

6. Hingoli district: Hingoli is an administrative district in

Maharashtra. Hingoli city is its headquarters. Situated on the

northern part of Marathwada, Hingoli district is bordered by

Akola, Yeotmal , Parbhani and Nanded. 4,526 kilometers the

district has a population of around 987,160. Hingoli district

was formed in the year 1999. Hingoli and Basmath are the 2

sub-divisions of the district.18

7. Latur District: Latur District is situated in the south-

eastern part of the Maharashtra. It lies at the border of

Maharashtra and Karnataka. Latur faced a mass destruction

in the year 1993 due to a devastating earthquake. Lotur is

located at latitude 18.05 TO 18.07 north and longitude 73.25

To 77.25 east. Surrounded by Parbhani district in the north,

179

Osmanabad district in the west and south, Bidar district in

the east, Nanded district in the north-east and Beed district

in the north-west, Latur is the southernmost district of

Maharashtra. Lying on the banks of Panchganga River, the

ancient city of Latur is the administrative center of the

district. Latur District Map is helpful for the tourists heading

to Latur. Latur is an ancient city. Its historic name is

Ratnapur. Latur city was built by the King Amoghvarsha

belonging to the Rashtrakutas dynasty. The Rashtrakutas

considered themselves as the citizens of Lattalut. Prior

to1981, Latur belonged to Osmanabad district. In 1981, Latur

was declared as an independent district. Today Latur is one

of the fastest growing cities of Maharashtra.19

8. Nanded District: Nanded District is situated in the

southeastern part of the Indian state of Maharashtra.

Nanded city is the district headquarters of the district.

Nanded District shares its border with Andhra Pradesh.

There are several tourist attractions in Nanded and the Sikh

Gurdwara is one them. Situated at about 18°.15' and 19°.55'

North latitude and 77°.7' to 78°.15' east longitude, the area of

Nanded district is about 10,422 square kilometers. The

district has sixteen Talukas. They are: Mahoor, Kinwat,

Himayatnagar, Hadgaon, Ardhapur, Bhokar, Nanded,

Mudkhed, Umri, Dharmabad, Loha, Khairgaon, Biloli,

Kandhar, Mukhed and Deglur.20

180

Characterizes of Marathwada Economy:

Marathwada economy exhibits features which more or less

similar to a under-developed economy. These features, are

indicated earlier, are either inherited or generated in the process of

planning and development. Let us analyze these features in

detail.21

1. Preponderance of agricultural sector: Generally, an

economy Marathwada will be divided in to three sectors,

namely, Primary Sector, Secondary Sector and Tertiary Sector.

The Primary Sector is the sector, which forms the basis of the

entire economy. In all agricultural countries, agricultural

sector is the primary sector. The secondary sector will be next

in the order of importance. Industrial sector is the secondary

sector in all agricultural countries. Tertiary sector is the third

sector indicates transport, communications, trade and

commerce, profession etc. An under developed Marathwada is

exclusively a primary producing economy. It will mainly

depend on the production of agricultural materials, and

industries mainly are agro-based like sugar, cotton, edible oil

etc. The share of the agricultural sector has the larger in the

composition of the state income; more than 75 per cent of the

people are engaged in agriculture. The pressure of population

is very high. Nearly 50 per cent of the state income is derived

from agriculture. Inspite of the fact that in Marathwada,

industrial started just two decade back and now hardly 5 per

cent of the population is engaged in industry and that two

mostly in agro-based industries.

181

2. Population pressure and unemployment: Over

population is a sign of under-development. In Marathwada,

the population is growing at an alarming rate. During the

decade 1961-1991, the increase was 40%, which is nothing but

population explosion or baby boom. Alarming increase in

population, excessive pressure on land and poor industrial

development has created unemployment problems; this could

not be solved successfully. Inspite for the planning of more

than two decades, the number of job seeks on the live register

of employment exchange in Marathwada has reached ten

thousand in 1961 to 2 lakh in 1998. Apart from this,

tremendous increase in the number of unemployed. The

problem of ‘disguised unemployment’ in taking serious

proportions. Due to large increase in population, many people

settle down on land to eke out their living from agriculture.

When more persons were working then what is actually

required, is called ‘disguised unemployment’. The excess

population does not contribute towards the productivity of

land and hence their marginal productivity is zero.

3. Poor income and poor saving: Another important feature

of under-employment is the low per capita income of the

people and the consequent little or no saving in the economy.

Judging from their region angels, Marathwada is definitely an

under-developed. It has been estimated that per capita income

of Marathwada is only 1/40 of that of Mumbai. According to

the MDC statistics, Marathwada is one of the poor regions of

Maharashtra, if not the poorest. A natural outcome of poor

income is little saving or no saving in the economy. The saving

182

of an employee plays a vital role in economic growth, as saving

and investments are the two crucial determinants of economic

growth.

4. Under utilization of resources: The natural resource of

the under-developed economy is either unutilized or under-

utilized. Marathwada is not be in deficient in natural resources

like land, water, minerals etc. the main problem would be that

those resources are poorly harnessed or improperly used. Poor

and improper utilization may be due to various reasons like

weak leadership, inaccessibility, and lack of technical

knowledge, shortage of capital and limited market. Many of

the regions of India have good potential for development, but

they remain backward because of under-utilization of

resources. Marathwada has vast natural land resource

including, lofty mountains, perennial rivers, etc. but these

have not been fully utilized. It has still about many acres of

cultivable wasteland. The waterpower potential of the region

has been harnessed only up to 25 per cent.

5. Capital deficiency: Capital occupies a strategic role in

production and economic development. Under-developed

regions would suffer from capital deficiency. , The stock of

capital is small, but also the rate of which it is being formed is

also being low; the process of capital formation is far from

satisfactory. Already have seen that the saving in Marathwada,

as percentage of incomes is too poor to have investment for

capital formation.

183

6. Low level of technology: In backward economies like,

Marathwada there is terrible dearth of skilled personnel and as

such the methods of production are program primitive.

Consequently, the productivity either in agriculture of

industries is very low. Lack of technical know-how, poor

scientific advancement and absolute technique, combined with

poor enterprenurship has resulted in poor quality products.

Through in Marathwada in Nanded and Aurangabad proper,

some advanced techniques is seen in some industries, the

same as compared with the modern standards of production,

is decidedly inferior.

7. Poor economic organization: Well-developed economic

institutions are vital factors of economic development. In

Marathwada economic institutions would be either ill-

developed or completely absent closely knit economic

organization and financial institutions would enable the region

to absorb the outlay for development very easily and

institutional reforms could also be carried out with ease. At the

time of independence, Marathwada deplorably lacked

economic organization and financial institutions. The little

available institutions were serving only the richer classes.

Hence, in the process of planning and development, attempts

are made to create the necessary organizational set-up at all

levels to effect quick growth.

8. Lack of suitable socio-economic set-up: In Marathwada,

the prevailing socio-economic set-up would be the greatest

impediment to development. Mass poverty and illiteracy

184

combined with caste system, religious beliefs, etc. adversely

affect the course of economic development. The industrial

development of Poona-Bombay belt in an excellent example to

prove the importance of socio-economic set up for

Marathwada people. In Marathwada, the caste consciousness

proved determinate to economic progress as it impeded the

Movement of capital, labour, and dampened into non-

competing groups. Hence, occupation mobility had little

meaning. Through casteism is one of the wane, it has taken a

new shape in the hands of selfish politicians. It has emerged in

the form of regionalism, parochialism, etc. preventing mobility

and displays an entrepreneurial skill.

9. Mass poverty, Misery and Low-standard of living:

About half of the people in the Marathwada are economically

very backward, poor and leading a miserable life without any

norms of standard of living. The backwardness, poverty and

poor standard result in low labour productivity, factor

immobility, and lack of entrepreneurship and poor

specialization. Instead of conquering the physical and social

environments, people would surrender to them. The under-

development portion of Marathwada is just the slum of the

Maharashtra. It has been estimated that nearly 30 per cent of

the population in Marathwada live below the poverty line

inspite of planning over three decades. The bottom 30 per cent

of population gets only 13 per cent of total private

consumption. They live in abject poverty and misery.

185

Major Causes of Backwardness of Marathwada Region:

More than three decades of economic planning, Marathwada

has changed from the position of a backward economy into what

may be called an intermediately developed economy. What we

mean by the backwardness in the context is that the economic

growth what have been faster but for some of the inconsistencies

that development during the process of planning. Some of these

are:22

Slow Rate of Growth in Agriculture: With few

exceptions of high yielding varieties and irrigation programs,

most of the activities in agricultural sector remained

backward and agriculture in Marathwada for many peasants

continued to be subsistence type. The unresponsiveness and

the lag of this sector created stress and strains on the

economy in the form of food shortages, scarcity of essential

raw materials, and substantial rise in the price of essential

commodities which have become beyond the reach of middle

and poor classes due to phenomenal inflationary pressure.

These led to distort wage-rates with the consequent adverse

effect on industrial profits and economic growth.

Undesirable Population Transfer: Another striking

features noticed was the mad of rush to few cities

(Aurangabad, Jalna, Nanded & Latur) during the last two

decades. The stringent economic life in village and the

attraction of the growing industrial cities led to very rural

exodus, this brought in its wake a series of social, political

economic and administrative problems. The drifting trends

from the rural scene in turn reduced agricultural labour

186

which aggravated labour scarcities on forms flooded the

labour markets in towns and cities; increase the number of

unemployed as well as slums in cities. In short, which

population shifts brought about unhealthily and problem

oriented urban-development and stagnated the self-retarding

rural development.

Massive Rural Unemployment: In spite of rural

exodus, there is today a massive seasonal unemployment in

the rural sector of Marathwada. Apart from the huge massive

unemployed in the region, there is a colossal amount of

disguised unemployment in the countryside. The distorting

effect of this surplus agricultural population is well known.

There removal will not only relieve agricultural from being

depressed, but also if absorbed in non agricultural

occupations will aid capital formation. This surplus labour

depress productivity and siphons off the ‘saving potential’ of

the rural sector, beside regarding modernization of

agricultural which is turn again depress agriculture causing

low productivity, low saving and poor investment.

Unbalanced Growth of Different Districts: Another

form of inconsistency that developed during the growth

process was disparities in the level of development of

different districts. The border objective of economic

development of the Maharashtra as was neglected to the back

ground and the cry by few politicians got reflected in budget

demands for allocation of a large share of the state resource

only to their home towns. The local leadership lacked behind

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and could not bring any substantial budget allocation for

economic development of their many talukas from Nanded,

Osmanabad, Beed & Parbhani districts.

Rural Poverty: After 50 years of planning and spending

thousand and thousand crores on agriculture and allied

subjects, the net product of the rural population of

Marathwada is very low, where as the Urban net product has

gone up. The rapidly deteriorating condition of the rural

economy is reflected in the increasing number of small

farmers, marginal farmers and landless labourers.

All the above stated facts go to show that all is not well with

the approach of Marathwada economic development. A new

technique is needed to bring about

An all round agricultural development ;

With increased employment opportunities;

Without population transfers;

Eradicating rural poverty; and

Assuring blanched region growth.

Implementation of SGRY in Marathwada Region:

The Employment Guarantee Scheme (EGS) of Maharashtra

was conceived as a major poverty alleviation measure in 1972 to

provide manual employment to all those who registered for it in

Marathwada region. This was later turned into a kind of statutory

entitlement with the enactment of Maharashtra Employment

Guarantee Act that came into force in 1979. The act had a provision

of a monetary compensation of Rs.2 per day if the State

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Government failed to provide employment within two weeks. The

Maharashtra EGS has been cited as a major programme in the

debate on wage employment generation type poverty reduction

programmes. It was considered as a success story in the 1980s

despite its limited size compared to the need and non-

implementation of the compensation clause. Doubling of wages in

1988 without adequate budgetary support led to fall in

employment by one-third. Indeed, one major point in the debate

on EGS and similar other scheme has centered around the level of

the right wage rate - the minimum at which the very poor group

might be offering work or a higher wage rate that could be

considered ‘decent’ and lift the beneficiaries above the poverty line.

One major advantage cited by advocates of EGS or FFW

programmes is the self selection nature in the sense that it would

normally attract participation from the poor group who would

otherwise not get sufficient employment opportunities in the

normal economic activities. But if such a wage rate happens to be

very low, it might go against the objective of lifting the poor above

the poverty line. A higher wage rate, on the other hand, could

defeat the self selection objective as it might attract people who are

employed in normal economic activities and increase the error in

targeting. Rationing available volume of employment would mean

that poorest of the poor would have to compete with those around

or above the poverty line with the latter having greater chances of

selection. The partial payment of the wages in kind has been

justified on grounds that such payments directly help to enhance

food security of the participants insuring the recipients against fall

in their purchasing power due to price rise or unavailability of food

grains. To the extent the programmes are meant to protect the

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poor households against seasonal vulnerability in food security,

timing, frequency and quantity of deliveries of food grains becomes

crucial aspects in programme evaluation. At the same time, the

poor would not prefer full payment of wages in kind as they need to

buy non-food items from the market.

Moreover, wages in kind increase transaction costs for the

funding agency. While creation of some durable assets in rural

areas is a major objective of employment programmes, some

authors have recognized a trade-off between the short run relief

objective and the long run rehabilitation and development

objective. Thus, while employment creation is the immediate

urgent need in a relief work, creation and maintenance of

productive assets like roads, school buildings, soil and water

conservation structures needs more careful planning as per need of

the locality. Involvement of local community in identification and

maintenance is generally required for success of such programmes.

The objectives of providing employment and creating durable

infrastructure under SGRY or its predecessor EAS/JGSY are

modeled on the lines of the EGS and other similar programmes.

Some studies of EAS/JGSY or SGRY have pointed out irregularities

in the form of fudging muster rolls, prevalence of corruption, non-

availability of work in the lean season, involvement of contractors

and absence of provision for maintenance of infrastructure

created.23

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References:

1. Gazetteer of India, Maharashtra State, Aurangabad

District, Page No: 1018.

2. Deogirikar A.B. – Impact of Economic Reforms on

Employment in SSI Sector of Marathwada Region – Edited

by K.K. Bagchi – Abhijit Publications, Delhi, p.732.

3. Bharat 2004 – Publication Department, Govt. Of India,

New Delhi (2004) P.1.

4. Santosh Dastane Maharashtra 2004” –, Ramchandra

Dastane And Co.Pune(2004) P.12.

5. K. Sagar Publications, Pune (1997) “Assa Ha Maharashtra”

P.15.

6. Sawadi A. B. (2003) - The Mega State –Maharashta -

Nirali Prakashan, Pune.

7. Development Of Marathwada A Perspective (1999) -

S.R.T.R.I., Aurangabad.

8. Bhalerao Anant (2001) - Haidrbabadswatantrya Sangram

And Marathwada - Mauj Prakashan, Mumbai.

9. Bhagawan Kale (1986) - Marathwada Yesterday And

Today - Sanket Prakashan, Jalna.

10. S.M. Garge (1995) - Marathwadyachya Disha And Gati -

Sakal Papers Ltd, A,Bad.

11. Sulabha Bramhe, Kumud Pore - Regional Planning Of

Marathwada - Gokhale Institute Of Politics And

Economics,Pune.

12. Shriram Patil, Yogesh Prakashan,Abad (2002) -

Maybolicha Marathwada Khand.

13. http://dcmsme.gov.in

14. http://www.icssr.org/Parbhani

191

15. http://beed.nic.in/

16. http://osmanabad.nic.in/newsite/DistrictProfile/main.htm

17. http://jalna.nic.in/html/distp.html

18. http://www.mapsofindia.com/maps/maharashtra/district

s/hingoli.htm

19. http://latur.nic.in/html/distprofile.htm

20. http://nanded.gov.in/htmldocs/index.html.

21. Maharshtrachi Arthik Pahani (2002-03) - Government Of

Maharashtra.

22. Seva Sahakari Margadarshika (2004) - Employment and

Self-Employment Department Government Of

Maharashtra.

23. Manoj Panda, Srijit Mishra, Sangita Kamdar and

Mallikarjun Tondare (2007) - Evaluation of Food-for-Work

(FFW) Component of Sampoorna Grameen Rozgar Yojana

(SGRY) in Selected Districts of Maharashtra -

http://works.bepress.com.