The Aakhya Weekly #68 | The Asian Games are just the Half-time
The Aakhya Weekly #68 | The Asian Games are just the Half-time
In Focus: Halfway Mark or Full Steam Ahead for Sports in India?
By Yashvika Malhan, with inputs from Trina Choudhury
As the curtains fell on the Hangzhou competition late one Sunday evening, the country was fourth on the medals tally with 107 medals – 28 gold, 38 silver, and 41 bronze.
India's remarkable showing at the Asian Games in Hangzhou, China, tells a story of transformation that has been in the making for nearly a decade. It secured a total of 29 medals in track and field (including six gold), 22 in shooting (with seven gold), and nine in archery (including five gold), collectively making up more than half of their total medal count. While cricket, kabaddi, hockey, badminton, and shooting are the usual fan favorites in India, this time medals were also awarded in less mainstream sports such as sepak takraw, wushu, roller skating, squash, and even bridge.
To provide context, it's worth revisiting the earlier years. Back in 2002, at the Busan Asian Games, India secured a modest 36 medals. But this has gradually improved over the years. By 2006, during the Doha Games, India's medal count surged to 53, reaching 65 medals in 2010 at the Guangzhou Games. While there was a slight dip in 2014 at the Incheon Asiad with 57 medals, India made a triumphant comeback in Jakarta and Palembang five years ago, achieving a record-breaking tally of 70 medals, marking our best-ever performance at that time.
As we celebrate the growing medal tally in the Asian Games, it is a moment for some introspection, especially when we shift our gaze to India's performance on the global stage. The fact is, with only seven medals at the 2020 Olympics, India's showing at international sporting events still falls short of expectations. This observation carries a weighted message, particularly when we consider India's immense youth population which is projected to reach 365 million by 2030. This demographic potential holds the key to making a significant impact on the global sports arena, making it all the more important for India to up its game and make its presence felt on the international stage.
Driving the Pro-sport Change
In India, cricket has long held the title of the undisputed king of sports. However, there is a noticeable change in how people perceive sports now. This understanding goes beyond cricket with other sports gaining recognition. Back in 2007, there was an attempt to introduce a sports policy, but it never materialized. However, the implementation of the National Sports Development Code in 2011 marked a turning point. It acknowledged that sports are not merely games but also a means to drive social development, foster inclusion, and create employment opportunities. This shift in perspective has been accompanied by an increase in the budget allocated to sports, reaching its highest level in the fiscal year 2023-2024.
While the government has demonstrated its dedication to investing in sports, the recent achievements of Indian athletes at the Asian Games can be partially credited to its two key programs: 'Khelo India' and the 'Target Olympic Podium Scheme' (TOPS). Khelo India, at its core, breathes new life into grassroots sports, welcoming around 1,000 new athletes annually. They receive INR 6.28 lakh per year, covering everything from training to pocket money. Then, they move up to the advanced training of the TOPS Development group. Meanwhile, TOPS supports identified elite athletes with funds, special gear, global exposure, top coaching, and monthly allowances of Rs 50,000 for the Core Group and Rs 25,000 for the Developmental Group
The impact of these initiatives is readily discernible in the outcomes they have produced. At the Asian Games, a notable 125 Khelo India Athletes (KIAs) participated, and 36 of them returned home with medals. While winning medals at various sporting events can certainly contribute to building a sporting culture, initiatives like the FIT India Movement and the integration of sports into the National Education Policy 2020 are playing a vital role in shifting the way we perceive sports. These efforts actively encourage a behavioral change, urging us to see sports not just as a leisure activity but as a fundamental aspect of a healthier lifestyle
In addition to the efforts of the Union government, each state is employing its own set of tools to bolster sports within its borders. Haryana, in particular, stands out with a comprehensive policy that not only promotes excellence and mass participation but also rewards medal winners with job opportunities and cash prizes. What stands out is their focus on leveraging sports as a tool for social inclusion through innovative programs like Dhakad, tackling issues like drug addiction.
On the other hand, Odisha has taken a slightly different approach. They may not have a dedicated sports policy, but they've cleverly woven sports into their broader youth policy. This means sports are becoming an integral part of everyday life, fostering overall youth development. Simultaneously, this approach is not only generating job opportunities but also evolving sports into a thriving industry.
Corporate involvement in sports, ever since it became part of their Corporate Social Responsibility (CSR) agenda, has also been a real game-changer. They've stepped up to improve sports facilities in disciplines like hockey, wrestling, judo, athletics, and football. This involves providing quality coaching, and necessary dietary support, organizing travel arrangements, and offering logistical assistance. Reliance, JSW, Tata Steel, and sports academies such as those run by Prakash Padukone-Rahul Dravid, among others, represent this change. This shift has given athletes more time and mental space to fully commit to their sports. Plus, as part of this Public-Private Partnership (PPP) system, they're using top-notch private sports facilities to host national tournaments.
Is it Enough?
Despite the remarkable strides in India's sporting journey, significant challenges persist within the country's sports system. Investment in sports infrastructure has increased, but the availability of proper facilities, particularly in educational institutions and underdeveloped states like Bihar, Jharkhand, and Odisha, remains severely limited. Much of the state-of-the-art infrastructure is concentrated in states like Haryana, Punjab, and Karnataka, leaving many regions underserved. Furthermore, the underutilization of resources and infrastructure is a recurring issue. The Standing Committee on Human Resource Development highlighted that despite substantial allocations to the Khelo India scheme, the actual expenditure fell short of the allocated budget.
To harness India's favorable demographic dividend and promote sports as a viable livelihood option, industry stakeholders must develop strategies that align with all. The governance of sports in India also grapples with issues like corruption and a lack of transparency. Shifting from bureaucratic regulation to a more entrepreneurial approach is essential to unlock the full potential of India's sports ecosystem. Regulations should align with social and economic demands, allowing market forces to drive innovation and growth. While the government should provide the necessary frameworks, enabling market forces will foster efficiency and propel the sports sector forward.
Recognizing the need for specialist expertise within sports agencies and departments is a positive trend. Emphasizing the inclusion of sports professionals in sports administration ensures that informed decisions are made, leading to more effective and knowledge-based policies. This approach can serve as a model for various other sectors in the country, promoting improved decision-making and better outcomes.
We're only at halftime
The Games have, to an extent, highlighted the potential of Indian athletes on the international stage. However, they have also underscored the need for consistent and sustained efforts in the sports ecosystem, from grassroots development to high-performance training. It's essential to leverage this success as a stepping stone to address issues like infrastructure, coaching, talent identification, and long-term athlete development.
While the success of Team India at the 19th Asian Games is commendable, it should catalyze more comprehensive analysis and long-term planning in Indian sports. This is an opportunity to foster a sports culture that can consistently produce world-class athletes and ensure that euphoria is not limited to specific events but becomes a regular feature in India's sporting journey.
Top Stories of the Week
India grabs a share of JP Morgan’s emerging market index
In a recent update, JP Morgan announced the inclusion of Indian government bonds into the Government Bond Index-Emerging Markets (GBI-EM) suite. Starting June 28, 2024, this inclusion to the suite, benchmarked by about USD 236 billion in global funds, will take place in 10 monthly increments of 1% each in index weighting – meaning an inflow of up to USD 24 billion for India.
Launched in 2005, the GBI-EM index suite covers bonds from 18 developing countries. Until now, India remained out due to restrictions such as a ceiling on investments from non-residents. It also stood its ground being opposed to capital gains tax waivers for foreign debt investors and international settlement of trading. However, to increase foreign investor participation, the RBI, in March 2020, introduced a mechanism called Fully Accessible Route (FAR). With this, certain government bonds may be opened to restriction-free investments from non-residents.
Now, the inflow due to India’s addition to the JP Morgan GBI-EM index suite is a mere 2% in comparison to the current outstanding IGBs of USD 1.2 trillion. So, this might not be a huge inflow to India. It may not lower debt costs and affect exchange rates. The essential takeaway, therefore, may be the positive signaling to international investors. It might pave the momentum for Indian bonds to join the FTSE and Bloomberg indices – resulting in another USD 15-20 billion inflow.
Increased foreign investment offers multiple advantages. It helps diversify the investor base – stabilizing the market and preventing government borrowing from crowding out private borrowers. The influx of foreign cash inflow can fuel India’s capital-intensive manufacturing aspirations, supporting industrial growth. Additionally, heightened scrutiny by international investors may encourage fiscal discipline within the government. On the flip side, the foreseeable challenge can be summarised as India’s increased vulnerability to global perceptions, economic factors, and policies.
We’re curious about what lies ahead.
Union Cabinet approves royalty rates for critical and strategic minerals
The Cabinet, on October 11, approved royalty rates for mining three critical and strategic minerals: lithium, niobium, and rare earth elements (REEs), taking a significant step towards promoting domestic mining of these minerals. The approved royalty rates for lithium, Niobium, and REE are 3 percent, 3 percent, and 1 percent, respectively.
India currently depends entirely on imports of critical minerals like lithium, niobium, and REEs. These minerals are crucial for India's transition to renewable energy, especially in the context of adopting electric vehicles and energy storage solutions. Notably, India imported more than 165 crore lithium batteries, valued at approximately $3.3 billion between FY17 and FY20. Additionally, these minerals hold strategic significance due to their essential role and the geopolitical factors affecting their availability.
In February, the largest lithium deposit in India, with "inferred" resources of 5.9 million tonnes, was discovered in Jammu & Kashmir by the Geological Survey of India. In June 2023, Union Minister Pralhad Joshi unveiled India's inaugural report on "Critical Minerals for India," identifying 30 vital minerals, including lithium, cobalt, nickel, and graphite, crucial for renewable technologies like electric vehicles and solar power. Following this, during the Monsoon session, the government passed the Mines and Minerals (Development and Regulation) Amendment Act of 2023, which removed six minerals, including lithium and niobium, from the list of "specified" atomic minerals, paving the way for its commercialization.
Mineral royalty is an economic rent due to the government in exchange for the right to extract mineral substances. The recent approval by the Union Cabinet to set specific royalty rates paves the way for auctions, managed by either the Central Government or individual states, to tap into these minerals commercially. Attractive royalty rates are expected to attract participants in future auctions, reducing India's dependence on mineral imports and promoting renewable technology. The Central Government is now gearing up for the initial round of auctions, covering essential minerals like Lithium, Rare Earth Elements, Nickel, and more.
A Few Good Reads
Peter J. Walker profiles this year’s economics Nobel laureate, Claudia Goldin. Bryan Keogh looks at the importance of her prize-winning work. Noah Smith goes into great detail on her incredible methodological innovation.
Lawrence Freedman takes a deep dive into the Hamas’ attack on Israel, and how we should see what will follow.
As gory scenes from war and terrorism light up our phone screens, Eric Hoel wonders what the virality of death does to us as a culture.
End-to-end encryption did not create child pornography or exploitation. Attacking it does nothing to make people safer, but kills many of its advantages, writes Professor Susan Landau.
“UN Security Council reform is a song in a loop”, says Shashi Tharoor. Can we afford not to reform the only system that brings all the world’s countries together?