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GS Paper: GS3

  • FAO Statistical Yearbook, 2024

    Why in the News?

    The Food and Agriculture Organization (FAO) of the United Nations has released its 2024 Statistical Yearbook, providing a comprehensive analysis of global agrifood systems.

    Key Highlights from the Yearbook

    • Economic Dimensions of Agriculture:
      • Global agricultural value increased by 89% in real terms between 2000 and 2022, reaching $3.8 trillion.
      • The proportion of the global workforce employed in agriculture dropped from 40% in 2000 to 26% in 2022, reflecting economic diversification.
    • Food Security and Nutrition:
      • In 2023, between 713 and 757 million people were undernourished, with a midpoint estimate of 733 million, marking an increase of 152 million since 2019.
      • Obesity rates are rising, with over 25% of adults in the Americas, Europe, and Oceania classified as obese.
    • Crop and Meat Production:
      • Primary crop production grew by 56% from 2000 to 2022, reaching 9.6 billion tonnes, with staples like sugarcane, maize, wheat, and rice accounting for nearly half.
      • Meat production rose by 55%, with chicken surpassing pork as the most produced meat globally in 2022.
    • Agricultural Inputs:
      • Pesticide use increased by 70% from 2000 to 2022, with the Americas accounting for half of global usage.
      • Inorganic fertilizers reached 185 million tonnes in 2022, a 37% increase since 2000.
    • Environmental Pressures:
      • Greenhouse gas emissions from agrifood systems grew by 10% from 2000 to 2022, with livestock contributing 54% of farm-gate emissions.
      • Water scarcity is a critical issue in regions like the Near East and North Africa, with countries withdrawing up to 40 times their renewable freshwater resources annually.

    About Food and Agriculture Organization (FAO)

    • The FAO is a specialized agency of the United Nations focused on eradicating hunger, improving nutrition, and ensuring food security worldwide.
    • Established in 1945, the FAO is headquartered in Rome, Italy, and works in collaboration with member states, organizations, and communities.
    • Mandate and Goals:
      • Hunger Eradication: Reduce global hunger and malnutrition through sustainable agricultural practices.
      • Agrifood System Development: Support member states in developing resilient and sustainable food systems.
      • Data and Analysis: Provide accurate, timely, and high-quality statistical data for policymaking and monitoring.
    • Key Functions:
      • Research and Policy Recommendations: Conducts research to address pressing issues in agriculture and food systems.
      • Capacity Building: Supports countries with training and resources for sustainable agriculture.
      • Monitoring Global Trends: Publishes annual reports and statistical yearbooks to track trends and challenges in agrifood systems.

     

    PYQ:

    [2017] Consider the following statements:

    1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.

    2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organization (FAO).

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • [pib] UJALA: 10 Years of Energy-Efficient Lighting

    Why in the News?

    The UJALA (Unnat Jyoti by Affordable LEDs for All) scheme, launched on January 5, 2015 has completed a decade of remarkable success.

    About UJALA Scheme:

    Launch Details
    • Launched on 5th January 2015 by PM Narendra Modi.
    • Originally called the Domestic Efficient Lighting Programme (DELP).
    • Aims to promote energy-efficient LED appliances in households.
    • Recognized as the world’s largest zero-subsidy domestic lighting initiative.
    Structural Mandate and Implementation
    • Implemented by Energy Efficiency Services Limited (EESL) under the Ministry of Power.
    • Competitive bidding ensures reduced prices for LED appliances.
    • LED appliances distributed via DISCOMs and designated centers.
    • Real-time e-procurement and transparency audits ensure accountability.
    Significant Features
    • Affordability: LED prices significantly lower than market rates (e.g., ₹70 per bulb, ₹220 per tube light).
    • Energy Efficiency: LEDs consume 90% less energy than incandescent lamps (ICLs) and 50% less than CFLs.
    • Cost Savings: Reduced electricity bills and lower annual ownership costs.
    • Market Transformation: Sale of over 407 crore LED bulbs in India.
    • Environmental Impact: Reduction in carbon emissions, aligning with India’s climate goals.

     

    PYQ:

    [2021] With reference to street lighting, how do sodium lamps differ from LED lamps?

    1. Sodium lamps produce light in 360 degrees but it is not so in the case of LED lamps.
    2. As street lights, sodium lamps have a longer lifespan than LED lamps.
    3. The spectrum of visible light from sodium lamps is almost monochromatic while LED lamps offer significant colour advantages in street lighting.

    Select the correct answer using the code given below.

    (a) 3 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • LEADS 2024’ Report Released

    Why in the News?

    The Logistics Ease Across Different States (LEADS) 2024 report, released by the Union Minister, outlines key objectives and performance metrics aimed at enhancing India’s logistics sector.

    What are the Aims and Objectives of  Logistics Ease Across Different States (LEADS)?

    • The primary aim is to improve logistics efficiency across states and union territories (UTs), thereby facilitating trade and reducing transaction costs essential for economic growth.
    •  States are encouraged to collaborate with the private sector to develop action plans that attract investments in logistics.
    • Emphasis is placed on promoting green logistics and adopting sustainable practices in logistics operations.
    • The report advocates for the integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics to enhance operational efficiency.
    • There is a focus on workforce inclusivity and skill development to boost the logistics sector’s capabilities.
    LEADS 2024 evaluates logistics performance based on four key pillars:

    • Logistics Infrastructure: Assessment of physical infrastructure supporting logistics activities.
    • Logistics Services: Evaluation of the quality and efficiency of logistics services available.
    • Operating and Regulatory Environment: Analysis of the regulatory framework affecting logistics operations.
    • Sustainable Logistics: Newly introduced pillar focusing on environmental sustainability within the logistics sector.

    Key Performance Highlights of 2024

    • Achievers by Group:
      • Coastal Group Achievers: Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu.
      • Landlocked Group Achievers: Haryana, Telangana, Uttar Pradesh, Uttarakhand.
      • North-Eastern Group Achievers: Assam, Arunachal Pradesh.
      • Union Territories Achievers: Chandigarh, Delhi.
    • Fast Movers and Aspirers:
      • Fast Movers include states like Andhra Pradesh, Goa (Coastal); Bihar, Himachal Pradesh (Landlocked); Meghalaya, Mizoram (North-Eastern).
      • Aspirers include Kerala, West Bengal (Coastal); Chhattisgarh, Jharkhand (Landlocked); Manipur (North-Eastern).

    What is the role of Public-Private Partnerships (PPPs) and skill development in transforming India’s logistics sector as per the recommendations in the LEADS 2024 report?

    Role of Public-Private Partnerships (PPPs)

    • Enhancing Infrastructure and Efficiency: The report advocates for leveraging PPPs to improve logistics infrastructure and services. By collaborating with private entities, states can enhance operational efficiency, reduce costs, and attract investments essential for developing robust logistics frameworks.
    • Facilitating Multi-Modal Hubs: PPPs are encouraged to establish multi-modal logistics hubs, which can streamline operations and improve last-mile connectivity. This approach aims to create an integrated logistics network that enhances trade facilitation across regions.
    • Promoting Transparency and Accountability: The involvement of private partners in logistics projects is expected to promote transparency through competitive bidding processes, thereby ensuring better governance and accountability in project execution.

    Role of Skill Development

    • Workforce Inclusivity: The report highlights the importance of skill development initiatives aimed at fostering inclusivity within the workforce. By enhancing the skills of workers, particularly women, the logistics sector can benefit from a more diverse talent pool.
    • Adoption of New Technologies: Skill development programs are crucial for equipping the workforce with knowledge about advanced technologies such as Artificial Intelligence (AI) and Data Analytics. This technological proficiency is essential for improving operational efficiencies and adapting to evolving industry demands.
    • Boosting Sector Competitiveness: By focusing on skill enhancement, the logistics sector can increase its competitiveness on a global scale. A well-trained workforce can lead to improved service delivery, innovation, and overall productivity within the sector.

    Way forward: 

    • Strengthen Public-Private Partnerships (PPPs): Foster collaboration between states and the private sector to develop multimodal logistics hubs, enhance last-mile connectivity, and improve infrastructure transparency through competitive bidding processes.
    • Promote Sustainability and Skill Development: Integrate green logistics practices, adopt advanced technologies (AI, ML), and implement comprehensive skill development programs to create an inclusive and efficient logistics ecosystem.

    Mains PYQ:

    Q What is the significance of Industrial Corridors in India? Identifying industrial corridors, explain their main characteristics. (UPSC IAS/2018)

  • Why is rupee weakening against dollar?

    Why in the News?

    In the last week of December 2024, the rupee dropped below 85 against the U.S. dollar, hitting a new low of 85.81. The rupee fell by about 3% in 2024, continuing its long-term decline against the dollar.

    What has caused the currency to depreciate? 

    • Exit of Foreign Investors: A significant driver of the rupee’s depreciation has been the exit of foreign portfolio investors (FPIs) from Indian markets. In 2024, FPIs pulled out substantial amounts from equities, leading to increased selling pressure on the rupee.
    • Widening Trade Deficit: India’s trade deficit has widened due to high imports, particularly of crude oil and gold, compared to its exports. This increased demand for foreign currencies (like the U.S. dollar) to pay for these imports has contributed to the rupee’s weakening.
    • Monetary Policy Differences: The Reserve Bank of India’s relatively looser monetary policy compared to the U.S. Federal Reserve has resulted in higher inflation rates in India. This inflation differential makes Indian assets less attractive to foreign investors, further reducing demand for the rupee.
    • Global Economic Factors: Geopolitical tensions, such as the Russia-Ukraine war and rising global crude oil prices, have created volatility in the markets, leading to capital outflows from emerging markets like India.
      • The other reason is that the strengthening U.S. dollar amid higher U.S. bond yields has made investments in the U.S. more attractive compared to India.

    What could be the impact of Rupee depreciation?

    • Increased Import Costs: A weaker rupee raises the cost of imports, particularly for essential goods such as crude oil, fertilizers, and edible oils. This increase in import bills can lead to a higher overall trade deficit, which reached an all-time high of $37.8 billion in November 2024, exacerbating economic vulnerabilities.
    • Inflationary Pressures: The rising costs of imported goods contribute to inflation, making everyday goods more expensive for consumers. This can lead to higher living costs and reduced purchasing power, as seen with the increased prices of food and fuel due to higher import expenses.
    • Impact on Economic Growth: The combination of rising inflation and increased costs can dampen economic growth. Higher import bills can create upward pressure on interest rates, making borrowing more expensive and potentially slowing down investment and consumption.

    Why made the central bank to intervene?

    • Stabilizing Currency Value: The Reserve Bank of India (RBI) intervened in the forex market to stabilize the rupee and prevent excessive volatility that could disrupt economic stability. By selling dollars from its reserves, the RBI aimed to support the rupee’s value against the dollar.
    • Preventing Inflationary Pressures: A depreciating rupee increases the cost of imports, particularly essential commodities like crude oil, which can exacerbate inflation domestically. The RBI’s intervention seeks to mitigate these inflationary pressures by maintaining a more stable exchange rate.
    • Maintaining Investor Confidence: By actively managing the currency’s value, the RBI aims to instill confidence among investors regarding India’s economic stability and attractiveness as an investment destination. This is crucial for sustaining foreign investment inflows and supporting economic growth.

    Way forward: 

    • Diversify Export Markets and Reduce Dependence on Imports: India should focus on enhancing its exports to non-traditional markets while exploring alternatives to reduce dependence on high-cost imports, especially crude oil and gold.
    • Monetary Policy Coordination and Strengthening Fundamentals: The RBI should work towards aligning its monetary policy with global trends while ensuring domestic inflation remains under control.

    Mains PYQ:

    Q How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?  (UPSC IAS/2018)

  • Migratory Bats ‘surf’ storm front winds to save energy

    Migratory Bats ‘surf’ storm front winds to save energy

    Why in the News?

    The Common Noctule Bats are surf over the storm winds when they migrate thousands of miles across continents, reveals new research.

    About the Common Noctule Bats (Nyctalus noctula)

    • The common noctule bat (Nyctalus noctula) is one of the largest bat species in Europe.
    • It has a body length of 7–9 cm, a wingspan of 32–40 cm, and weighs between 18–40 grams.
    • Its fur is reddish-brown to golden-brown, darker on the back and lighter underneath, while its wings are long and narrow, designed for fast and sustained flight.
    • Features: 
      • Common noctules are known for their swift and high-altitude flight, reaching heights of up to 3,000 meters.
      • They are primarily insectivorous, feeding on moths, beetles, and other flying insects.
      • Their echolocation abilities allow them to detect and hunt prey with precision, even in complete darkness.
      • Although classified as Least Concern by the IUCN, common noctule bats face several threats, including habitat loss due to deforestation and urbanization.
    • Habitat:
      • The common noctule bat is widely distributed across Europe, North Africa, and Asia, extending into Siberia and parts of China.
      • It is migratory, especially in central and eastern Europe, traveling long distances between summer breeding sites and winter hibernation sites.
      • It inhabits forests and woodlands, where it uses hollow trees for roosting, as well as urban areas, where it often roosts in buildings, attics, and bat boxes.
      • These bats also thrive in wetlands and grasslands, hunting over water bodies and open fields where insect populations are abundant.

    PYQ:

    [2012] Consider the following kinds of organisms:

    1. Bat

    2. Bee

    3. Bird

    Which of the above is/are pollinating agent/agents?

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • How are Zebrafishes able to repair damaged hearts?

    Why in the News?

    A recent research revealed that the Zebrafish (a popular aquarium fish) can regenerate damaged heart muscle within 60 days, a capability absent in humans. The Hmga1 protein plays a key role in this process, offering potential insights for heart repair in mammals.

    Discovery of Hmga1’s Role in Zebrafish Heart Regeneration:

    • In zebrafish, the Hmga1 protein plays a pivotal role in activating dormant genes necessary for regeneration.
    • It removes molecular “roadblocks” on chromatin (DNA-packaging structures), shifting genes from an inactive state to active regeneration mode.
    • The Hmga1 gene, active during embryonic development in mice and humans, becomes inactive after birth.
    • In zebrafish, however, the gene remains active during heart regeneration, enabling the repair process.

    About Zebrafish

    • Zebrafish are small freshwater fish measuring 2-3 cm in length.
    • It is named for the horizontal blue stripes running along their bodies.
    • It is native to South Asia’s Indo-Gangetic plains and is commonly found in paddy fields, stagnant water, and streams.
    • It is classified as Least Concern by the IUCN.

    Features of Zebrafish

    • Zebrafishes are known for their ability to regenerate almost all major organs, including the heart, brain, eyes, and spinal cord.
    • This unique trait makes them an important model in developmental biology and disease research.
    • They share approximately 70% of their genes with humans.
    • Over 80% of human disease-related genes have counterparts in zebrafish, making them valuable for studying genetic disorders.
    • They produce hundreds of embryos in a single clutch, enabling large-scale studies.
    • They are now preferred over rodent (guinea pigs) models for certain vertebrate development studies.
    • Widely used for regenerative biology and drug discovery due to their cost-effectiveness and rapid breeding.

  • Chhattisgarh first state to link Forest Ecosystem with Green GDP

    Why in the News?

    For the first time in India, Chhattisgarh has introduced an innovative framework that integrates the ecosystem services of its forests into the calculation of Green Gross Domestic Product (Green GDP). This initiative highlights the critical role forests play in supporting both environmental sustainability and economic growth.

    Highlights of the Chhattisgarh’s Plan

    • Forest contributions like carbon absorption, climate regulation, and biodiversity preservation will now be formally quantified and included in the state’s economic planning.
    • The initiative ensures forests are valued not just for their resources but for their broader ecological services.
      • With 44% of its land under forest cover, Chhattisgarh’s natural resources are vital for the livelihoods of millions and play a significant role in mitigating climate change.
    • The initiative aligns with ‘Developed India 2047’ vision, focusing on long-term ecological and economic sustainability.

    About Green GDP

    • Green GDP is an alternative metric for assessing economic growth that includes the environmental costs of economic activities.
    • It subtracts the value of natural resource depletion and environmental degradation from traditional GDP to provide a more accurate picture of economic well-being.
    • Introduced in the 1993 United Nations Handbook of National Accounting: Integrated Environmental and Economic Accounting under the System of Environmental-Economic Accounting (SEEA) framework.
    • Key Features:
      • Aims to measure the sustainability of economic growth.
      • Focuses on valuing ecosystem services like carbon sequestration, soil conservation, and water resources.
      • Provides insights into the trade-offs between economic growth and environmental conservation.
    • Calculation:
      • Green GDP = Traditional GDP – Costs of Environmental Degradation – Costs of Resource Depletion.
    • Challenges: Incomplete environmental data, reliance on subjective assumptions, difficulty in valuing ecosystem services, and the absence of a universal calculation framework, often oversimplifying nature’s intrinsic worth.

    Government Initiatives for Green GDP Accounting

    • Green National Account Framework: It integrates environmental considerations into national accounting systems. It captures the value of natural resources, costs of pollution, and benefits of ecosystem services like clean air and water.
    • System of Environmental-Economic Accounting, 2012 (SEEA): It was adopted by India under UN guidelines to create databases for natural capital accounting and informed policymaking.
    • RBI Estimates: Green GDP for 2019 was ₹167 trillion, reflecting a 10% adjustment from traditional GDP. It is supported by organizations like TERI and Indian Statistical Institute to refine valuation methodologies.

  • Genetic Engineering Appraisal Committee (GEAC)

    Why in the News?

    The Union Ministry of Environment, Forest, and Climate Change has introduced amendments to the rules governing the selection of experts in the Genetic Engineering Appraisal Committee (GEAC).

    Key Highlights of the Revised GEAC Rules:

    • Conflict of Interest Disclosure: Expert members must disclose any direct or indirect interests that may conflict with their duties. Conflicted members must recuse themselves from decision-making unless specifically requested by the committee.
    • Transparency Measures: All members are required to submit a detailed record of their professional affiliations from the past 10 years to ensure accountability and unbiased evaluations.
    • Participation Restrictions: Experts with conflicts of interest must report them before meetings and take steps to ensure that their affiliations do not affect GEAC decisions.
    • Enhanced Governance: The revised rules aim to strengthen the regulatory process for genetically modified organisms (GMOs), ensuring fair and impartial decision-making.
    • Supreme Court Compliance: The amendments align with the Supreme Court’s directive (2023) to address concerns of conflict of interest in GM crop approval processes, boosting public trust in GEAC’s role.
    • Improved Operational Integrity: These changes emphasize transparency, ensuring that scientific appraisals and policy decisions remain free from external influence.

    What is Genetic Engineering Appraisal Committee (GEAC)?

    • The GEAC is the apex regulatory body overseeing activities related to genetically modified organisms (GMOs) in India, particularly their release into the environment.
    • It is established under the Rules for the Manufacture, Use/Import/Export, and Storage of Hazardous Microorganisms/Genetically Engineered Organisms or Cells (Rules, 1989) framed under the Environment (Protection) Act, 1986.

    Structural Mandate:

    • Operates under the Ministry of Environment, Forest, and Climate Change (MoEF&CC).
    • Composition:
      • Chairperson: Special Secretary/Additional Secretary of MoEF&CC.
      • Co-Chairperson: Representative from the Department of Biotechnology (DBT).
      • Includes 24 members, representing key institutions like the Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), and Centre for Cellular and Molecular Biology (CCMB).
      • Meets monthly for appraisals and discussions.

    Powers and Functions of GEAC:

    • Powers:
      • Approves or denies proposals for environmental release of genetically engineered organisms (including GM crops).
      • Exercises the power to take punitive actions under the Environment Protection Act, 1986 for violations.
      • Monitors large-scale use of hazardous microorganisms and recombinants in research and industrial production.
    • Functions:
      • Evaluates activities involving the environmental release of GMOs and their products, including experimental field trials.
      • Ensures compliance with safety protocols to minimize environmental risks.
      • Reviews applications for the import, export, manufacture, and storage of GM organisms and cells.
      • Makes recommendations based on a comprehensive assessment of environmental and health impacts.
      • Addresses concerns related to conflicts of interest and ensures impartiality in decision-making.
      • Engages with stakeholders, including farmers and environmentalists, to maintain transparency and address public concerns.

    PYQ:

    [2015] The Genetic Engineering Appraisal Committee is constituted under the:

    (a) Food Safety and Standards Act, 2006

    (b) Geographical Indications of Goods (Registration and Protection) Act, 1999

    (c) Environment (Protection) Act, 1986

    (d) Wildlife (Protection) Act, 1972

  • India’s emissions inventory & efforts at mitigation

    Why in the News?

    India recently shared a report about its efforts to fight climate change. The report includes details about how much greenhouse gases (GHG) the country produces and the steps it has taken to reduce these emissions as part of its global climate promises.

    What is the Biennial Update Report (BUR)?

    • The Biennial Update Report (BUR) is a detailed report that developing countries, including India, submit to the United Nations Framework Convention on Climate Change (UNFCCC). This report outlines their efforts toward climate action, as mandated under the Paris Agreement.
    • BURs include an overview of national circumstances related to climate, socio-economic factors, and forestry, along with a comprehensive inventory of national greenhouse gas (GHG) emissions and their sources. They also detail national action plans for emission mitigation and the support received for climate-related initiatives.

    What are the BUR-4’s highlights and submissions on emissions inventory?

    • Total GHG Emissions: In 2020, India’s total GHG emissions were reported at 2,959 million tonnes of CO2 equivalent. After accounting for land use, land-use change, and forestry (LULUCF), net emissions were 2,437 million tonnes, reflecting a 7.93% decrease from 2019 levels.
    • Reduction in Emissions Intensity: The report indicates that from 2005 to 2020, India’s emissions intensity of GDP decreased by 36%. This metric measures GHG emissions per unit of economic output, highlighting improved energy efficiency and a shift towards renewable energy sources.
    • Sectoral Contributions: The energy sector was the largest contributor to emissions, accounting for 75.66%, with electricity production alone responsible for 39% of total emissions. Agriculture contributed 13.72%, while industrial processes and waste management accounted for 8.06% and 2.56%, respectively.

    What does BUR-4 say about the status of India’s climate commitments?

    • The BUR-4 outlines India’s commitment to its Nationally Determined Contributions (NDCs) under the Paris Agreement, aiming for a 45% reduction in GDP emission intensity by 2030 compared to 2005 levels.
    • The report notes that between 2005 and 2021, India created an additional carbon sink of approximately 2.29 billion tonnes of CO2 equivalent through enhanced forest and tree cover, contributing significantly to its climate goals.

    What has the report said about India’s tech needs for climate-conscious growth? (Way forward)

    • Advanced Technologies for Low-Carbon Growth: The report emphasizes the necessity for adopting cutting-edge technologies across various sectors, including solar energy, wind energy, bioenergy, electric vehicles, and carbon capture and storage.
    • Capacity Building: Strengthening institutional frameworks and workforce capabilities is essential for effective implementation of climate policies and programs. This involves training personnel and developing skills necessary to manage and operate advanced technologies.
    • Financial and Technological Support: The BUR-4 identifies a significant gap in technology transfer from developed countries, which hampers India’s ability to implement necessary climate solutions. India calls for increased international cooperation to facilitate technology transfer, eliminate intellectual property barriers, and provide financial assistance to support its climate initiatives.
    • Integration of Technology in Key Sectors: The report highlights the importance of integrating advanced technologies into critical sectors that contribute to emissions, such as agriculture and energy.

    Mains PYQ:

    Q ‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)

  • India Secures 14.3% of Global Remittances in 2024: World Bank

    Why in the News?

    In 2024, India received a record $129.1 billion in remittances which marked the highest share for any country since 2000 as per the World Bank.

    What are the Trends in Remittances flow?

    • Record Inflows: In 2024, India received an estimated $129.1 billion in remittances, marking the highest amount ever recorded for any country in a single year.
    • Global Share: India accounted for 14.3% of global remittances, the highest share since the turn of the millennium.
    • Growth Rate: The growth rate of remittances in 2024 was approximately 5.8%, a significant increase from 1.2% in 2023.
    • Top Recipients: Following India, Mexico and China received the largest remittances, with Mexico at $68 billion and China at $48 billion.

    What are the Factors Responsible for High Remittances in India?

    • Large Diaspora: India has one of the largest diaspora populations globally, with over 18 million Indians living abroad, contributing significantly to remittance inflows.
    • Shift to High-Income Countries: There has been a trend of Indian migrants moving to high-income economies such as the United States, United Kingdom, and Australia, where job opportunities are more abundant.
    • Diverse Skill Levels: Indian migrants include highly skilled professionals (in sectors like IT and healthcare) as well as semi-skilled and unskilled labourers, broadening the scope for remittance generation.
    • Recovery of Job Markets: The recovery of job markets in high-income countries post-pandemic has driven an increase in remittance flows as employment opportunities have improved.

    What is the significance of high Remittances?

    • Economic Support for Households: Remittances serve as a crucial source of income for many families in India, supporting their daily needs and contributing to overall household welfare.
    • Impact on National Economy: In 2024, remittances constituted approximately 3.3% of India’s GDP, highlighting their role in bolstering the economy.
    • Comparison with Other Financial Flows: Remittances have outpaced other forms of external financial flows, such as Foreign Direct Investment (FDI) and Official Development Assistance (ODA), indicating their importance for funding current account deficits and fiscal shortfalls in low- and middle-income countries.
    • Long-Term Growth Trends: Over the past decade, remittances to low-and-middle-income countries have increased by 57%, underscoring their growing significance as a stable source of income compared to declining FDI.

    What are the negative impacts of brain drain?

    Even though remittances are good for the country, they have negative signals for any country like brain drain. 

    • Loss of Skilled Labor: Brain drain leads to a significant depletion of skilled professionals in the home country, resulting in shortages in critical sectors such as healthcare, education, and technology.
      • This loss hampers the country’s ability to innovate and develop, as there are fewer qualified individuals to drive progress and maintain essential services.
    • Economic Consequences: The exodus of skilled workers results in decreased tax revenues for the home country, which can limit public spending on infrastructure and social programs. This financial shortfall can stunt economic growth and development, exacerbating existing challenges within the economy.
    • Impeded National Development: Countries experiencing brain drain may face slower overall development due to the loss of human capital. This can create a cycle of underdevelopment, where the lack of skilled labour leads to reduced investment opportunities and further emigration, perpetuating the cycle of talent loss and economic stagnation.

    Way forward: 

    • Enhance Domestic Opportunities: Strengthen education, healthcare, and innovation ecosystems to retain skilled professionals by providing competitive salaries, career growth, and improved living standards.
    • Engage Diaspora Strategically: Leverage the Indian diaspora for knowledge transfer, investments, and partnerships, creating pathways for their contribution to national development while maintaining ties with homegrown talent.