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GS Paper: GS3

  • India’s jobs crisis, the macroeconomic reasons

    Burning Issue] Jobless growth in India - Civilsdaily

    Central idea 

    The article discusses the challenge of “jobless growth” in India, where the employment growth rate remains unresponsive despite increased GDP and value-added growth rates. It emphasizes the unique characteristics of India’s jobless growth regime, involving a high Kaldor-Verdoorn coefficient, and calls for a distinct policy focus on employment in addition to the traditional emphasis on GDP growth.

    Key Highlights:

    • The article discusses the distinction between wage employment and self-employment, emphasizing the challenge of inadequate labor demand, particularly for regular wage work in the formal sector.
    • India’s historical employment scenario includes open unemployment, high levels of informal employment, and a stagnant growth rate of salaried workers in the non-agricultural sector.
    • The lack of employment opportunities in the formal sector is attributed to factors such as output growth, labor productivity, and the introduction of labor-saving technologies.

    Key Challenges:

    • India faces the challenge of “jobless growth,” where the employment growth rate remains unresponsive despite a rise in GDP growth and value-added growth rates.
    • The article highlights the connection between labor productivity growth rate and output growth rate, contributing to the phenomenon of jobless growth in India.
    • The distinct form of jobless growth in India, characterized by a higher than average Kaldor-Verdoorn coefficient, poses a qualitative challenge for macroeconomic policies.

    Key Terms:

    • Kaldor-Verdoorn coefficient: A measure reflecting the responsiveness of labor productivity growth rate to output growth rate.
    • Dual economy structure: An economic structure characterized by the coexistence of a modern and traditional sector, often seen in developing countries.
    • Mahalanobis strategy: A development strategy that prioritizes heavy industrialization to overcome the constraints on output and employment.

    Key Phrases:

    • “Jobs generally refer to relatively better-paid regular wage or salaried employment.”
    • “The lack of opportunities is reflected by a more or less stagnant employment growth rate of salaried workers in the non-agricultural sector.”
    • “The positive effect of output growth rate on employment fails to counteract the adverse effect of labor-saving technologies in the Indian jobless growth regime.”

    Key Quotes for value addition:

    • “The Indian economy has historically been characterized by the presence of both open unemployment as well as high levels of informal employment.”
    • “Jobless growth in India makes the macroeconomic policy challenge qualitatively different from other countries.”

    Key Examples and References:

    • Reference to the Mahalanobis strategy focusing on heavy industrialization as a policy for overcoming constraints on output and employment.
    • Mention of the higher than average Kaldor-Verdoorn coefficient in India’s non-agricultural sector as a distinctive feature of jobless growth.

    Key Facts:

    • India’s employment growth rate in the formal non-agricultural sector has remained unresponsive despite significant increases in GDP and value-added growth rates.
    • Jobless growth in India is associated with a high Kaldor-Verdoorn coefficient, indicating a strong connection between labor productivity growth rate and output growth rate.

    Critical Analysis:

    • The article critically examines the traditional presumption that increasing the output growth rate would be a sufficient condition for increasing the employment growth rate in the formal sector.
    • It highlights the need for a separate policy focus on employment, including both demand and supply side components, in addition to the focus on GDP growth.

    Way Forward:

    • Advocate for policies addressing the skills gap and improving the quality of the workforce to make automation less attractive for firms.
    • Propose direct public job creation as a demand-side component of employment policies.
    • Suggest reorienting the macroeconomic framework to finance employment-related expenditures, including increasing the direct tax to GDP ratio and improving compliance.

  • Why terrorist activity has shifted from Kashmir to Poonch-Rajouri

    Solved] Where is the Pir Panjal Range located?

    Central idea 

    The recent surge in terrorist activity in the Poonch-Rajouri sector challenges the Indian Army’s historical success in counter-terrorism operations. This shift is attributed to the path of least resistance as Kashmir becomes less conducive, prompting a need for a strategic reassessment and adaptation of deployment and operational strategies to address emerging challenges. Transparent investigations into civilian deaths and a balanced approach in public statements are crucial to maintaining public trust and stability in the region.

    Key Highlights:

    • Recent encounters in the Poonch-Rajouri sector challenge the Indian Army’s historical success in counter-terrorism operations.
    • Shift of terrorist activity to Poonch-Rajouri is due to the path of least resistance, with Kashmir facing strong counter-terrorism measures.
    • Dilution of local support, abrogation of Article 370, and focus on Pir Panjal (South) indicate a strategic shift in the region’s dynamics.
    • Questions arise about the redeployment of formations and potential dilution of optimum deployment in the sector.

    Key Challenges:

    • Losses for the Indian Army in recent encounters raise concerns about the effectiveness of current strategies and the need for potential adjustments.
    • Shift in terrorist activity to Poonch-Rajouri poses a challenge to the Army’s counter-terrorism efforts.
    • Allegations surrounding the deaths of three local civilians in suspicious circumstances require thorough investigations and pose a challenge to maintaining public trust.

    Key Terms/Phrases:

    • Poonch-Rajouri sector
    • Counter-terrorism operations
    • Proxy hybrid war
    • Counter-infiltration (CI) and counter-terrorism (CT) grid
    • Article 370
    • Pir Panjal (South)
    • Redeployment
    • Rashtriya Rifles troops

    Key Quotes:

    • “Terrorism is like water; it takes the path of least resistance.”
    • “The abrogation of Article 370 has also made Kashmir less conducive to separatist trends.”
    • “The Indian government’s demonstrated capability for retaliation when an undetermined threshold is crossed will keep Pakistan on tenterhooks.”

    Key Statements:

    • Recent encounters challenge the Indian Army’s historical success in counter-terrorism operations.
    • The strategic shift of terrorist activity to the Poonch-Rajouri sector necessitates a reassessment of deployment and operational strategies.

    Key Examples/References:

    • Shift in terrorist tactics and focus from Kashmir to the Poonch-Rajouri sector.
    • Allegations surrounding the deaths of three local civilians.

    Key Facts/Data:

    • Recent encounters in the Poonch-Rajouri sector resulted in more losses for the Army than terrorists.
    • Redeployment of troops from the Jammu sector since May 2020.

    Critical Analysis:

    • Losses in recent encounters raise questions about the effectiveness of the Army’s current strategies.
    • Shift in terrorist activity indicates the need for adaptability in response strategies.
    • Allegations surrounding civilian deaths require transparent investigations to maintain public trust.

    Way Forward:

    • Conduct a thorough review of identified weaknesses in convoy security, vehicle hardening, and reinforcement movements.
    • Adapt drills, Standard Operating Procedures (SOPs), and minor tactics to address current challenges.
    • Ensure transparent investigations into civilian deaths, with suitable disciplinary action if mistakes are identified.
    • Conduct brigade-sized operations in Pir Panjal with drone support, reinforced by strong public outreach to address local sentiments.
    • Maintain a balanced approach in public statements to prevent speculation and unrest, and continue precautionary measures in the Kashmir Valley.

  • Nematocysts in Aquatic Ecosystems

    Central Idea

    • Evolution has crafted unique defense mechanisms in the animal kingdom, one of which is the nematocyst.

    Understanding Nematocysts

    • Structural Composition: A nematocyst comprises a capsule with a coiled tubule and a toxin-filled bulbous structure.
    • Rapid Deployment: Upon stimulation, the nematocyst ejects its tubule at an incredibly high acceleration, comparable to a bullet’s speed.
    • Fastest Biological Mechanisms: This ejection process is among the quickest in the animal kingdom.
    • Found in: Nematocysts are particularly prevalent in jellyfish, corals, sea anemones, and hydras, serving as effective tools for hunting and protection.

    Role in Cnidarians’ Survival

    • Cnidarians and Cnidocytes: Cnidarians, a group of animals characterized by cnidocytes (specialized cells), heavily rely on nematocysts for feeding and defense.
    • Activation Process: Contact with potential prey triggers sensory structures on cnidocytes, leading to the nematocyst’s release and subsequent prey immobilization or toxin injection.

    Diversity of Toxins in Nematocysts

    • Variety of Effects: Nematocyst toxins can be paralytic, halting prey movement, or cytolytic, breaking down cells.
    • Strategic Use: Cnidarians often employ a mix of toxins to enhance the effectiveness of their predatory and defensive actions.
    • Contribution to Cnidarians’ Success: The complexity and efficiency of nematocysts play a vital role in the survival and dominance of cnidarians in aquatic habitats.
    • Formidable Aquatic Predators: The presence of nematocysts makes cnidarians formidable entities in their ecosystems.

  • India’s Textile Crisis amid Rising MMF Fabric Imports

    Central Idea

    • Major textile hubs in India, including Ludhiana, Surat, and Erode, are grappling with the surge in imports of man-made fibre (MMF) fabrics, impacting a sector worth about $60 billion.
    • Fabric processors and weavers across these hubs express concerns over the influx of cheaper imports, primarily from China, affecting their businesses.

    Impact of Imported MMF Fabrics

    • Market Dominance: Imported fabrics, especially from China, are increasingly found in Indian markets, leading to unsold stocks and production cuts by local weavers.
    • Price Disparity: Indian weavers face competition from cheaper imported yarns, compelling them to import materials like viscose yarn from China to remain competitive.

    Statistical Overview of MMF Fabric Imports

    • Doubling of Imports: In the last three years, MMF fabric imports have doubled, with a significant portion being knitted synthetic fabrics.
    • Import Data: Daily imports from China increased from 325 tonnes in 2019-2020 to 887 tonnes in the April-June quarter of the current fiscal year, with a notable drop in average value per kg.

    Under-Invoicing and Quality Control Issues

    • Under-Invoicing Concerns: The practice of under-invoicing imported finished fabrics poses a major challenge, leading to calls for stricter customs regulations.
    • Quality Control Orders (QCOs): The government’s introduction of QCOs on MMF fibres and products, requiring BIS certification, has impacted the entire value chain.

    Consequences for Local Industry and Global Trade

    • Operational Capacity: The downstream industry is reportedly operating at only 70% capacity due to these challenges.
    • Export Decline: Exports of man-made yarn, fabrics, and made-ups have seen a year-on-year decline.
    • Global MMF Trade: India’s share in global MMF trade was 2.7% in 2019, with fabrics and yarn being major export components.

    Industry Perspectives and Government Policies

    • Innovation Gap: Industry experts highlight a lack of innovation in MMF products in India compared to countries like China, Thailand, and Korea.
    • Impact of QCOs: The introduction of QCOs, particularly at the fibre stage, is criticized for disrupting the industry, with calls for implementing quality controls at the garment stage instead.
    • Challenges for MSMEs: Small and medium enterprises face financial strain due to declining orders, high prices, and increased operational costs.
    • GST Issues and Financial Relief Demands
      • GST Refund Delays: The introduction of GST led to higher taxes on MMF fibre and yarn, with delayed refunds causing financial burdens for weavers.
      • Refund Controversy: Weavers contend that they are owed significant refunds due to the inverted duty structure, with the government potentially owing around ₹1,000 crore to the sector.

    Conclusion

    • Need for Strategic Measures: Addressing the challenges in India’s textile industry requires a balanced approach, considering both domestic capabilities and global market dynamics.
    • Government’s Role: Effective policy measures, including rationalizing import duties and quality controls, are essential to support the industry and enhance its competitiveness.
    • Future Outlook: The textile sector’s resilience and adaptability will be key in overcoming these challenges and capitalizing on potential opportunities in the global market.

  • National Mathematics Day: Remembering the legacy of Srinivasa Ramanujan

    Ramanujan

    Central Idea

    • December 22, Ramanujan’s birthday, was declared National Mathematics Day in India by Prime Minister Manmohan Singh in 2012, in recognition of his contributions to the field.

    Srinivasa Ramanujan (1887-1920)

    • Early life: Srinivasa Ramanujan, born on December 22, 1887, in Erode, Tamil Nadu, exhibited extraordinary mathematical abilities from a very young age.
    • Mathematical Mastery by 14: By age 14, Ramanujan had mastered advanced mathematics, excelling in exams and exploring complex topics.
    • Difficulties in Other Subjects: His singular focus on mathematics led to poor grades in other subjects, hindering his academic progress.
    • Scholarship Loss and Hardships: After losing a scholarship at Government College in Kumbakonam due to his academic struggles, Ramanujan faced financial difficulties and limited job opportunities.

    Rise in Mathematical Circles

    • Recognition in Madras: By 1910, Ramanujan had gained recognition in Madras’s mathematical circles for his independent work.
    • Clerical Job and Research: In 1912, he secured a clerical position at the Madras Port Trust, which afforded him time for mathematical research.
    • Collaboration with GH Hardy: In 1913, Ramanujan began a correspondence with British mathematician GH Hardy, leading to an invitation to Cambridge University.

    Collaboration and Achievements in Cambridge

    • Journey to Britain: Ramanujan arrived in Britain in 1914 and joined Trinity College, Cambridge.
    • Work with Hardy and Littlewood: Collaborating with Hardy and JE Littlewood, Ramanujan made significant contributions despite his lack of formal higher education.
    • Prestigious Honors: He was elected to the London Mathematical Society in 1917 and became a Fellow of the Royal Society in 1918, one of the youngest Fellows in its history.

    Health Struggles and Return to India

    • Declining Health: Ramanujan’s health worsened in the cold British climate, leading to a diagnosis of tuberculosis.
    • Final Years: He returned to India in 1919 and passed away on April 26, 1920, at the age of 32.

    Ramanujan’s Enduring Mathematical Legacy

    • High Praise from Hardy: GH Hardy ranked Ramanujan’s natural mathematical talent alongside greats like Euler and Jacobi.
    • Bruce C Berndt’s Analysis: American mathematician Bruce C Berndt extensively studied Ramanujan’s notebooks, emphasizing the depth of his contributions.
    • Impact on Number Theory: Ramanujan’s work, particularly on the partition function, has had a lasting impact on number theory.
    • Broad Contributions: His expertise included areas like continued fractions, Riemann series, elliptic integrals, hypergeometric series, and the zeta function.
    • Legacy of Unpublished Works: Ramanujan left behind notebooks filled with unpublished results that continued to inspire mathematicians for decades.

    Try this question from CSP 2016:

    A recent movie titled “The Man Who Knew Infinity” is based on the biography of-

    (a) S. Ramanujan

    (b) S. Chandrasekhar

    (c) S. N. Bose

    (d) C. V. Raman

     

    [wpdiscuz-feedback id=”de88ndt1ka” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

  • Rediscovery of Namdapha Flying Squirrel in Arunachal Pradesh

     

    Namdapha Flying Squirrel

    Central Idea

    • The Namdapha flying squirrel, missing for 42 years, has been sighted again in Arunachal Pradesh.
    • This rare species was last documented in 1981 in the Namdapha Tiger Reserve.

    Namdapha Flying Squirrel

    Details
    Species Name Namdapha Flying Squirrel (Biswamoyopterus biswasi)
    Type Arboreal, nocturnal flying squirrel
    Endemic Region Arunachal Pradesh, Northeast India
    Habitat Tall Mesua ferrea jungles, often on hill slopes in the catchment area of the Dihing River, northeastern India
    First Discovery Known from a single specimen collected in Namdapha National Park in 1981
    Physical Description – Reddish, grizzled fur with white above

    – Pale grey crown, orangish patagium, white underparts
    Genus Significance Was the sole member of its genus until the discovery of other species like Biswamoyopterus laoensis (2013) and Biswamoyopterus gaoligongensis (2018)
    Conservation Status IUCN Status: Critically Endangered

    Wildlife Protection Act Status: Schedule I
    Threats Threatened by poaching and possibly habitat destruction

  • [pib] RAMP Programme

    Central Idea

    • Union Minister for MSME launched three sub-schemes under the RAMP (Reforms and Acceleration in MSME Performance) programme.

    About RAMP Programme

    Details
    About World Bank assisted Central Sector Scheme.
    Launch FY 2022-23
    Supported By Ministry of Micro, Small and Medium Enterprises (MoMSME), Government of India.
    Primary Aim – Improve access to market and credit for MSMEs.

    – Strengthen institutions and governance.

    – Enhance Centre-State linkages and partnerships.

    – Address delayed payments and promote greening of MSMEs.
    Key Components – Preparation of Strategic Investment Plans (SIPs) by states/UTs.

    – Apex National MSME Council for monitoring and policy overview.

    Details of the Launched Schemes

    MSME Green Investment and Financing for Transformation Scheme (MSME GIFT Scheme) MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme) MSE Scheme on Online Dispute Resolution for Delayed Payments
    Objective To assist MSMEs in adopting green technology. The government’s first scheme to support circular economy projects in the MSME sector. Combines legal support with IT tools and Artificial Intelligence to address delayed payments issues.
    Support Mechanisms Offers interest subvention and credit guarantee support. Aims to achieve zero emissions by 2070 through credit subsidy. Focused on aiding Micro and Small Enterprises.
    Unique Features – Encourages eco-friendly practices in MSMEs.

    – Financial incentives for green technology adoption.

    		 – Promotes sustainable and eco-friendly business models.

    – Supports long-term environmental goals.

    		 – Innovative use of technology for dispute resolution.

    – Aims to streamline payment processes and reduce conflicts.

  • Call for Reform in Sovereign Credit Rating Process  

    Central Idea

    • India’s Chief Economic Adviser, V Anantha Nageswaran, emphasizes the need for reform in the sovereign credit rating process.
    • The aim is to accurately reflect the default risk of developing economies and reduce their funding costs.

    What are Sovereign Credit Ratings?

    • A sovereign credit rating is a measure of a country’s creditworthiness, or its ability to meet its financial obligations.
    • It is an assessment of the credit risk associated with a country’s bonds or other debt securities.
    • The rating is assigned by credit rating agencies such as Standard & Poor’s, Moody’s, and Fitch Ratings.
    • S&P and Fitch rate India ‘BBB-‘ and Moody’s ‘Baa3’, all indicative of the lowest possible investment grade, but with a stable outlook.

    India’s Pursuit of a Credit Rating Upgrade

    • Current Rating: India is at the lowest possible investment grade but is seeking an upgrade due to improved economic metrics post-pandemic.
    • Government Engagement: Continuous efforts are being made to engage with global credit rating agencies for an improved rating.

    Challenges in the Current Rating Methodology

    • Opacity and Impact: CEA points out the opaqueness in rating methodologies and the difficulty in quantifying the impact of qualitative factors.
    • Bandwagon Effects and Biases: The significant presence of qualitative factors leads to cognitive biases and concerns about the credibility of ratings.

    India’s Engagement with Rating Agencies

    • Meetings with Top Agencies: Finance ministry officials have met with representatives from Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings.
    • Current Ratings: While S&P and Fitch rate India at BBB, Moody’s rates it at Baa3 with a stable outlook.

    Parameters and Issues in Sovereign Rating

    • Typical Parameters: Agencies consider factors like growth rate, inflation, government debt, and political stability.
    • Qualitative Component: Over half the ratings are determined by qualitative factors, often non-transparent and perception-based.
    • Dominance in Ratings: Institutional Quality, often measured by World Bank’s Worldwide Governance Indicators (WGIs), is a significant determinant for developing economies.
    • Issues with WGIs: These metrics are non-transparent, perception-based, and may not represent a sovereign’s willingness to pay.

    CEA’s Recommendations  

    • Need for Transparency: Sovereigns are expected to be transparent; similarly, rating agencies should make their processes clear and avoid untenable judgments.
    • Potential Benefits: Enhanced transparency could lead to more reliance on hard data and possible credit rating upgrades for many sovereigns.
    • Access to Private Capital: Improved ratings can help developing countries access private capital crucial for addressing global challenges like climate change.
    • India’s Export Targets: With initiatives like production-linked incentives and Make in India, India aims for a $2 trillion export target by 2030.

    Conclusion

    • Advocacy for Change: Nageswaran’s comments highlight the need for a more equitable and transparent sovereign credit rating process.
    • Broader Implications: Such reforms could not only benefit developing economies like India by reducing funding costs but also contribute to a more accurate and fair global financial system.

  • SAMAR Air Defence System

    samar

    Central Idea

    • In a major success for its in-house design and development efforts, the Indian Air Force has successfully testfired its SAMAR air defence missile system.

    About SAMAR Air Defence System

    Details
    Full Name Surface to Air Missile for Assured Retaliation (SAMAR)
    Type Short-range air-defence system
    Developed By A unit under the IAF’s Maintenance Command
    Range 10–12 km
    Target Low-flying aerial targets
    Speed Missiles operating at a speed range of 2 to 2.5 Mach
    Key Features – Uses existing inventory of Vympel R-73E missiles

    – Twin-turret launch platform

    – Capable of single and salvo modes
    Role in Defence Supplementing IAF’s Akash and SPYDER systems, replacing older systems like Pechora and OSA-AK
    Deployment Not specified

    https://www.hindustantimes.com/videos/world-news/indian-missile-shield-against-potential-threats-from-pak-china-iaf-samar-system-in-action-101702815648038.html

  • India’s defence budgeting and the point of deterrence

    Key Highlights:

    • The Medium Multi-Role Combat Aircraft (MMRCA) program faces challenges, with the purchase of only 36 Rafale jets instead of the required 126, leading to a depleted squadron strength in the Indian Air Force (IAF).
    • The article raises concerns about the impact of budgetary constraints on defense preparedness, especially with India in election mode and potential cuts in the defense budget.
    • Emphasis is placed on the need for a judicious assessment of defense planning and budgeting to address threats on the northern borders and enhance sea power against China.

    Key Challenges:

    • The persistent issue of budget constraints impacting defense procurement and preparedness.
    • The gap between the required and actual squadron strength in the Indian Air Force.
    • Concerns about potential cuts in the defense budget amid electoral priorities.

    Key Terms and Phrases:

    • Medium Multi-Role Combat Aircraft (MMRCA) program
    • Squadron strength
    • Budget constraints
    • Defense preparedness
    • Northern borders
    • Sea power
    • Atmanirbhar Bharat
    • Innovations For Defence Excellence (iDEX)
    • Ordnance Factory Board
    • Negative lists for imports

    Key Quotes and Statements:

    • “Mother of all procurements” – Referring to the MMRCA program with a cost of around $10 billion in 2007.
    • “We will fight with what we have” – General V.P. Malik’s quote during the Kargil conflict.
    • “You go to war with the industrial base you have, not the industrial base you want” – From the War on the Rocks article, emphasizing the importance of the existing industrial base.

    Key Examples and References:

    • The purchase of 36 Rafale jets instead of the required 126 under the MMRCA program.
    • The deficit in squadron strength in the Indian Air Force, currently at an abysmal 32.
    • The Global Innovation Index 2022 highlighting India’s low research and development expenditure.

    Key Facts and Data:

    • India’s defense expenditure as a percentage of central government expenditure has declined from around 16.4% in 2012-13 to 13.3% in 2022-23.
    • The Ministry of Defence requested ₹1,76,346 crore for capital acquisitions in 2023-24, but only ₹1,62,600 crore was allotted, creating a deficit of ₹13,746 crore.
    • China spent $421 billion on research and development in 2022, which is 2.54% of its GDP.

    Critical Analysis:

    • The article underscores the challenges of balancing electoral imperatives and national security priorities in defense budget allocation.
    • It highlights the necessity for a smart balance between imports and indigenous accretions for technological modernization.
    • The concerns raised about the long gestation period for indigenization efforts and the need for sustained momentum in policy-making.

    Way Forward:

    • Emphasizes the importance of bipartisan statesmanship to make defense budgeting election-proof.
    • Calls for a continuum in policy-making and adequate defense budgeting to address national security imperatives.
    • Stresses the need for sustained momentum in the Atmanirbhar Bharat drive and other indigenization efforts.