Economics lessons from a walking trail

I recently visited my mom in Pune, a bustling city in Western India. Long back, this is also where I studied for my master's in economics at GIPE.

One day, my son and I decided to climb a famous hillock, Parvati, with ancient temples at the top. Then we walked the picturesque Waghajai (the tiger deity) and Taljai trail.

Here is a round-up of lessons from that morning.

1)  Power of mind – Against everyone’s advice, my 85-year-old mom, who has been down with backache and stomach pain, insisted that she would accompany us, and she did, successfully!

But trade-offs are real – severe acidity and headache followed.

2) Irrigation vows - The Uber cab driver taking us to the starting point of the hill was a migrant from another town in Maharashtra. He was a confident 23-year-old graduate with 7 acres of family agricultural land. He migrated to Pune only because there was no water for farming. He rents the car and commented, ‘I don’t want to make others rich on my hard work’. He wants to get some experience and then set up a transport business.

The lack of irrigation and problems in water distribution have plagued Indian agriculture forever, lowering farm yields, generating volatility, and leading to groundwater depletion. But as and when farm productivity rises, there would be a problem of plenty, which would depress prices as the demand curve for basic food tends to be inelastic. India must develop an export market for food products and push agro-processing.

3) Fitness Freak youngsters – Many consider the young generation lazy, late-risers, mobile freaks, etc. But when you climb Parvati, you see hundreds of young people – men and women - with athletic physiques, climbing the hill running, then exercising at the top/midway. Visiting Parvati is an excellent way to overcome the tendency of confirmation bias about the young generation and see the other side.

4) Entrepreneurship—At Taljjai, we met a cheerful lady who made and sold 7-8 breakfast items with a helper. She and her husband stay there until noon each day. During the rest of the day, she manages an artificial flower business! Long hours of daily work done with a smile. Such small-scale businesses can flourish if they get good advice and funding.

5) Demand for public sector jobs—100+ young men and women were exercising in temple premises at Taljai. Upon inquiry, it turned out that they were from a police training school. I first thought it was post-selection training, but it was by a training school that prepares potential candidates for the police physical test. The demand for public sector jobs remains high in India. Incentives matter.

6) Another educated cab driver—Driving does not need a degree. It is skill that is developed with practice. But the cab driver we returned with also seemed well-educated, courteous, and had a good car. This was not a common combination until a few years ago.

It was a morning well spent.