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Types Of Droughts

Meteorological drought is brought about when there is a prolonged time with less than average precipitation. Meteorological drought usually precedes the other kinds of drought

Agricultural droughts are droughts that affect crop production or the ecology of the range. This condition can also arise independently from any change in precipitation levels when soil conditions and erosion triggered by poorly planned agricultural endeavors cause a shortfall in water available to the crops.

Hydrological drought is brought about when the water reserves available in sources such as aquifers, lakes and reservoirs fall below the statistical average. Hydrological drought tends to show up more slowly because it involves stored water that is used but not replenished.

Ecological drought is generally defined as the prolonged and widespread deficit in soil moisture, or biologically available water, that imposes multiple stresses in terrestrial and aquatic ecosystems.

Walt Rostow, US economist and a political theorist suggested that economy passes through following five stages before it becomes a developed economy.

These are:

1. Traditional society– This is an agricultural economy of mainly subsistence farming,
2. Pre-conditions for take-off– Agriculture becomes more mechanised and more output is traded.
3. Take-off– Manufacturing assumes greater importance, although the number of industries remains small. Political and social institutions develop . Economy becomes self reliant and growth take place automatically.
4. Drive to maturity– Industry becomes more diverse. Growth spread to different parts of the country as technology improves.
5. Age of mass consumption– Output grows, enabling increased consumer expenditure. There is a shift towards tertiary sector activity.

 Bhartmala is an ambitious roads and highways project of  the NDA government. It involves construction of roads and highways to India’s borders, coastal areas, ports, religious and tourist places as well as over 100 district headquarters. It will involve construction of around 25000 km of road network.

The economic survey talks about “Chakravyuha” by which it means difficult exit of firm from market. Indian firms due to the existing laws , rules and regulations face the big problem when businesses go bust. The current laws make it almost impossible for firms to close business. This is often  a disincentive for strating a business based on innovative and risky idea.

Economic survey address the situation by 5 ways- first,  by promoting competition via private sector entry rather than change of ownership from public to private. Secondly, direct policy action through better laws like the Insolvency and Bankruptcy Code 2015 will expedite exit. Thirdly, use of technology to layers of intermediaries. The fourth is increasing transparency and highlighting social costs. Finally, showcasing exit as an opportunity.