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GS Paper: GS3

  • LIGO-India: India’s Contribution to the Growth of Modern Astronomy

    Central Idea

    The Union Cabinet approved the full budget for the LIGO-India mega-science project, which includes the construction, commissioning and joint scientific operation of a state-of-the-art, advanced Laser Interferometer Gravitational-Wave Observatory (LIGO) in India in collaboration with the NSF-funded LIGO Laboratory, USA, operated by Caltech and MIT.

    About LIGO-India

    • LIGO-India will be the fifth node of this international network of gravitational wave observatories, and possibly the last.
    • The instrument is so sensitive that it can easily get influenced by events like earthquakes, landslides, or even the movement of trucks, and produce a false reading.
    • That is why multiple observatories are needed to revalidate the signals.
    • India’s involvement in LIGO is crucial to demonstrating its intent and capability to pull-off complex science projects independently

    Facts for prelims: What is LIGO?

    What is it?

    Laser Interferometer Gravitational-Wave Observatory (LIGO)

     
    Purpose Detect and study gravitational waves
    Cause Ripples in spacetime caused by violent and energetic events in the universe
    Location Livingston, Louisiana and Hanford, Washington
    Detector Michelson interferometer
    Function Measure changes in length caused by passing gravitational waves

     
    Benefits Improving our understanding of the universe and its origins
    Discovery Detected gravitational waves for the first time in 2015

     
    Significance Confirmed a prediction made by Albert Einstein’s theory of general relativity

     
    Field Gravitational wave astronomy
    Discoveries Many exciting discoveries about the nature of the universe

     

     Significance of LIGO-India

    • Advancement in gravitational-wave astronomy and astrophysics: LIGO-India will significantly enhance global capabilities in the field of gravitational-wave astronomy and astrophysics. The project will enable an entirely new window to our universe and open up opportunities to study the cosmos in ways that were previously impossible.
    • Boosting research careers: LIGO-India will provide opportunities for Indian youth to pursue research careers in cutting-edge areas of science and technology, thereby supporting the growth of the Indian science industry and economy.
    • Development of cutting-edge technologies: LIGO-India will lead to the development of cutting-edge technologies such as lasers, optics, vacuum, quantum metrology and control-system technologies, which have great national relevance. The project will bring together researchers in fundamental and applied sciences from national research laboratories, IITs and IISERs to universities in partnership with the industry, and attract talent from the large pool of Indian researchers spread worldwide.
    • Galvanizing India’s industry: The project will galvanize India’s industry to enhance capability and capacity to engineer and manufacture complex components with precision to meet stringent scientific requirements, thereby enhancing the reputation of Indian industry.
    • Contributing to India’s mega-science ventures: LIGO-India is part of India’s mega-science ventures, which aim to lead or partner in very high-science goals through large-scale collaborative efforts requiring highly skilled human resources, significant fiscal capital and infrastructural investment, and close academia-industry partnerships. LIGO-India is expected to extend the legacy of successful world-class facilities such as the Giant Metrewave Radio Telescope (GMRT) near Pune and Himalayan Chandra Telescope (HCT) in Ladakh.

    Facts for prelims: Other Important science projects

    Mega-science Project

    Description
    Large Hadron Collider (LHC) Particle accelerator located in Switzerland, aims to study subatomic particles
    Indian-based Neutrino Observatory (INO) A proposed underground neutrino laboratory to be located in Tamil Nadu, India
    Facility for Antiproton & Ion Research (FAIR) A particle accelerator located in Germany, used for research in nuclear and particle physics
    Thirty Meter Telescope (TMT) A proposed astronomical observatory, with a mirror diameter of 30 meters, to be located in Hawaii
    Square Kilometre Array (SKA) A radio telescope that will be the largest and most sensitive in the world, to be located in Australia and South Africa
    Laser Interferometer Gravitational-Wave Observatory (LIGO) A facility designed to detect gravitational waves, with observatories located in the USA and India

    Way ahead: Mega-Science Projects and India’s S&T Policy

    • Mega-science projects like LIGO-India inculcate invaluable elements of work ethic in the scientific community.
    • The key is the ability to create a focused but adequately large well-knit collaborative ecosystem that remains open to growing by bringing in wider participation.
    • There is need for a culture within S&T communities to anticipate breakthroughs and appreciate new findings that may often deviate from the current comfort zone for policymakers to be receptive and for executing agencies to create robust mechanisms to assess, evaluate, and respond expeditiously to allow sufficient time to set up the enterprise.

    Conclusion

    The LIGO-India mega-science project is a significant milestone in India’s contribution to the growth of modern astronomy. The project will prompt Indian S&T in academia, national laboratories, and industries to leapfrog in a range of cutting-edge technologies. It reinforces the view that a healthy sprinkling of mega-science efforts in the overall S&T policy empowers and enriches the nation.

  • India’s Fighter Jet Conundrum

    india

    Central idea: The article discusses the challenges faced by the Indian Air Force (IAF) in modernizing its fighter jet fleet due to unending delays in procurement and limited resources.

    Why discuss this?

    • Against the sanctioned strength of 42 fighter squadrons, the IAF has only 31 squadrons today.
    • And this number is expected to remain the same or even decrease by 2029.
    • The IAF representative informed the Parliamentary standing committee that the shortfall may not be accomplished anytime soon.

    Indian Air Force (IAF): A quick backgrounder

    • The IAF was established in 1932, and it played an important role in India’s defence during World War II and later in the 1947-48 Kashmir War.
    • It underwent modernization in the 1960s and 70s with the induction of new aircraft and weapons systems.
    • Since then, the IAF has grown to become one of the largest air forces in the world, with a significant role to play in India’s defence and security.

    Evolution of the IAF

    Key Events
    Pre-Independence Phase – Small organization with only six officers and 19 airmen

    – Played a crucial role in World War II and the 1947-48 Kashmir War
    1947-1962 Phase – Expansion and modernization of the IAF

    – Acquisition of new aircraft and weapons systems
    1962-1980 Phase – Involvement in the 1965 and 1971 Indo-Pak wars

    – Modernization with the induction of new aircraft and missiles
    1980-Present Phase – Further modernization with the acquisition of new aircraft, missiles, and weapons systems

    – Focus on enhancing operational readiness

     

    Current Status of the IAF

    • Large workforce: The IAF has around 1,500 aircraft and 140,000 personnel, making it one of the largest air forces in the world.
    • Fleet details: The IAF has a sanctioned strength of 42 fighter squadrons, but the current strength stands at 31 squadrons.
    • Victorious wars: It has played an essential role in various conflicts, including the 1965 and 1971 Indo-Pak wars and the Kargil conflict in 1999.
    • HADR operation: It has also been involved in humanitarian assistance and disaster relief operations, such as the 2004 tsunami and the 2013 Uttarakhand floods.

    Challenges faced

    The IAF faces multiple challenges in the 21st century.

    • Decommissioning aircraft: By the end of the decade, many of the Jaguars, Mirage-2000s, and Mig-29s will begin going out, which is why the decision on Multi-Role Fighter Aircraft (MRFA) is essential to arrest this drawdown.
    • Arsenal shortages: The IAF faces a shortage of fighter aircraft, which is a significant concern given the current geopolitical environment.
    • Selective modernization: One of the critical issues is modernization, which includes the upgrading of its aircraft and weapons systems.
    • Diverse threat: The IAF also needs to ensure operational readiness to address the changing nature of warfare, which involves non-state actors, asymmetrical warfare, and cyber threats.
    • Logistic fallouts: Furthermore, the IAF needs to improve its logistics and infrastructure to support its operations effectively.
    • Maintenance challenges: There is a slow synergy with vendors for ‘long-term spares and repair contracts’.

    Opportunities for the IAF

    There are several opportunities for the IAF to enhance its capabilities in the modern era.

    • Modernization: The acquisition of new aircraft, weapons systems, and technologies can significantly enhance the IAF’s combat capabilities.
    • Joint cooperation: Additionally, the IAF can improve its international cooperation with other air forces to gain experience and enhance its interoperability.
    • UAV induction: The IAF can also explore the use of unmanned aerial vehicles (UAVs) for surveillance, reconnaissance, and combat roles.
    • Indigenization: The IAF is emphasizing the need for indigenization of its fighter jet production via LCA and Fifth Gen fighter aircraft program.

    Challenges in fleet modernisation

    • Procurement delay: The IAF faces significant challenges in modernizing its fleet due to delays in procurement and limited resources.
    • R&D, Infra bottlenecks: Implementing indigenization is a complex process that involves significant investment in research and development, infrastructure, and human capital.
    • Others: Other challenges include a lack of skilled labour, limited funding, and the need for technology transfer from foreign partners.

    Way forward

    • The IAF needs to prioritize the acquisition of MRFA, focus on increasing the availability rates of the Su-30, and invest in its own industry to achieve self-reliance in the long term.
    • Effective collaboration between industry, government, and the armed forces is crucial for the success of indigenization efforts in the defence sector.

     

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  • NASA develops Exobiology Extant Life Surveyor (EELS)

    eels

    NASA is developing a snake-like robot- Exobiology Extant Life Surveyor (EELS), which it says can boost space exploration through its diverse adaptability to various terrains.

    Exobiology Extant Life Surveyor (EELS)

    Details
    Purpose Designed to explore internal and enclosed dynamic terrain structures to assess evidence for life.
    Focus To explore ocean-world-inspired terrain, and besides Enceladus, it can explore Martian polar caps and descending crevasses in Earth’s ice sheets.
    Enceladus and EELS system Enceladus is a small and icy body, and the Cassini spacecraft dubbed it to be one of the most scientifically interesting destinations in the solar system.
    Scientific investigations Work is underway to identify high-priority and high-impact scientific investigations to show the capabilities of the snake-like robot.

     

    Features of EELS Robot

    Details
    Propulsion and gripping mechanism EELS robot has an actuation and propulsion mechanism, driven by power and communication electronics.

    It uses a rotating propulsion unit that acts as tracks, while the gripping mechanism and propeller unit help it to access a plume vent exit.
    Adaptability The robot’s adaptability to various terrains and its unique features make it capable of exploring areas that were once inaccessible.
    Enceladus Geyser-like jets spew water vapor and ice particles from an underground ocean beneath Enceladus’s icy crust, making it a promising lead for NASA in its search for life.

     

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  • Exercise INIOCHOS-23

    iniochos

    The Indian Air Force (IAF) will be participating in a multi-national air exercise called Exercise INIOCHOS-23, which will be hosted by the Greece Air Force.

    Ex. INIOCHOS-23

    • Exercise INIOCHOS-23 will be conducted at the Andravida Air Base in Greece.
    • The IAF will be participating with four Su-30 MKI and two C-17 aircraft.
    • The objective of the exercise is to enhance international cooperation, synergy, and interoperability among the participating Air Forces, as stated by the IAF in a statement.

    Strategic significance

    • The exercise will be conducted in a realistic combat scenario involving multiple types of air and surface assets
    • This will provide valuable insight into each other’s best practices and enable the participating contingents to interact professionally.

     

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  • Critical Minerals and India

    critical

    Central idea

    • A recent working paper from Centre for Social and Economic Progress (CSEP) extends the earlier minerals assessment for 23 minerals by assessing the criticality levels of 43 select minerals for India.
    • This is based on their economic importance (demand-side factors) and supply risks (supply-side factors) which are determined through the evaluation of specific indicators.

    What are Critical Minerals?

    • Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
    • These minerals are used in making mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
    • Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
    • Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.

    Why are these resources critical?

    • Clean energy transition: Critical minerals are essential to the ecosystem that fuels the world’s transition towards clean energy and digital economy.
    • Strategic nature: Any supply shock can severely imperil the economy and strategic autonomy of a country that is over-dependent on others to procure critical minerals.
    • Rare availability: Supply risks exist due to rare availability, growing demand, and complex processing value chain.

    What is the China ‘threat’?

    • Dominant role: China is the world’s largest producer of 16 critical minerals, including cobalt and rare earth elements.
    • Monopoly in processing: The country has a strong presence across the board in processing operations, with a share of refining around 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for rare earth elements.
    • Control over offshore mines: China also controls cobalt mines in the Democratic Republic of Congo, from where 70% of this mineral is sourced.
    • Supply chain dominance: The country’s dominance in critical minerals production and processing raises concerns of a supply disruption in case of a geopolitical conflict.

    Challenges in ensuring resilient critical minerals supply

    • Limited availability of critical minerals: The rare availability of critical minerals poses a challenge in meeting the growing demand for these minerals.
    • Geopolitical risks: Complex supply chains can be disrupted by hostile regimes or politically unstable regions, leading to supply chain disruptions.
    • Dominance of certain countries: A few countries, such as China, are the dominant producers of critical minerals, leading to concerns over supply disruptions in case of a geopolitical conflict.
    • Increasing demand for critical minerals: With the shift towards renewable energy technologies and electric vehicles, the demand for critical minerals such as copper, lithium, and rare earth elements is increasing rapidly.
    • Reliance on foreign partners: Countries with limited reserves and higher requirements for critical minerals may have to rely on foreign partners to meet their domestic needs, leading to supply chain vulnerabilities.
    • Environmental and social concerns: The extraction and processing of critical minerals can have negative environmental and social impacts, leading to challenges in meeting sustainability goals.

    What are countries around the world doing about it?

    Several countries are taking measures to ensure a consistent supply of critical minerals to their domestic markets.

    • India: It has set up Khanij Bidesh India Ltd. (KABIL), a joint venture of three public sector companies, to ensure a consistent supply of critical and strategic minerals to the Indian domestic market.
    • US: It has ordered a review of vulnerabilities in its critical minerals supply chains and shifted its focus on expanding domestic mining, production, processing, and recycling of critical minerals and materials.
    • Australia: Its Critical Minerals Facilitation Office (CMFO) and KABIL had recently signed an MoU aimed at ensuring reliable supply of critical minerals to India.
    • UK: It has unveiled its new Critical Minerals Intelligence Centre to study the future demand for and supply of these minerals, and its critical mineral strategy will be unveiled later this year.

    What should India do to ensure resilient supply?

    • Developing domestic sources of critical minerals: This can be achieved by promoting exploration and mining activities, both by public and private sector entities.
    • Encouraging responsible mining practices: The Indian government should encourage responsible mining practices that minimize negative environmental and social impacts of mining activities.
    • Developing recycling capabilities: This can be achieved by promoting research and development in recycling technologies and incentivizing the adoption of recycling practices.
    • Promoting transparency in the supply chain: India should promote transparency in the critical minerals supply chain by ensuring the traceability of minerals from the point of extraction to the point of end-use.
    • Investing in research and development: India should invest in research and development to develop new technologies and processes for efficient extraction, processing, and recycling of critical minerals.
    • Developing a national critical minerals strategy: India should develop a national critical minerals strategy that identifies priority minerals, promotes domestic exploration and mining, and promotes sustainable and responsible mining practices.

    Conclusion

    • India has a significant mineral geological potential, many minerals are not readily available domestically.
    • Hence, India needs to develop a national strategy to ensure resilient critical minerals supply chains, which focuses on minerals found to be critical in this study.

     

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  • The Indian Space Policy 2023 and The Role of Private Sector

    Space Policy

    Central Idea

    • The Indian Space Policy 2023 has been approved by the Indian Cabinet Committee on Security. The policy has opened up the Indian space sector, facilitating an enhanced role for the private sector to augment the development and competitiveness of the Indian space program.

    All you need to know about Indian Space Policy 2023

    • Clear roles and responsibilities: The Indian Space Policy 2023 policy clarifies the roles and responsibilities of the Indian Space Research Organization (ISRO), NewSpace India Limited (NSIL), and the Indian National Space Promotion and Authorization Center (IN-SPACe), as well as that of the private players in the Indian space sector.
    • Opportunities for private sector players: One of the key aspects of the new policy is to open up the Indian space sector to provide opportunities for private sector players to play an active role in augmenting the development and competitiveness of the Indian space program. This will allow ISRO to focus on non-commercial missions, such as research and development of advanced space technologies and space exploration.
    • Enhance overall ISRO missions: The policy is expected to enhance overall ISRO missions with greater participation of non-government entities, including academia, the research community, startups, and industry.
    • Institutional setups: Strategic activities within the space sector will be handled by NSIL, an institutional set up within the Department of Space that will address these activities in a demand-driven mode. The other recent institutional set up that will be critical in coordination between the public sector and the private players is IN-SPACe.
    • Framework for use of ISRO facilities: The policy outlines a framework under which the private sector can use ISRO facilities for a small fee.
    • Making Indian space programme competitive: The private players are also expected to create new infrastructure in the space sector. This will be critical in ensuring that the Indian space program becomes more competitive and developed.
    • ISRO will focus on research and development: In a significant move, ISRO has stated that it will not do any operational and production work for the space sector and will instead focus its energies on developing new technologies, new systems, and research and development. This essentially means that the routine production and launches that the ISRO was involved in until now will be handled by the private sector completely.

    What is mean by Open Space Policy?

    • An Open Space Policy refers to a policy that allows for open and transparent participation in space activities.
    • It involves the collaboration between public and private entities in the exploration and use of space.
    • The goal of an open space policy is to promote innovation, competition, and the growth of the space industry while ensuring the safety and security of space activities.
    • This policy allows for the development of new technologies, research and development, and increased cooperation and collaboration between different countries and organizations.

    Space Policy

    Facts for prelims: Private space sector startups in India

    Company Name

    		 Area of Specialization

    Recent Developments
    Skyroot Aerospace, Hyderabad Launch Vehicles for Small Satellites Successfully launched their first indigenously designed and developed launch vehicle, Vikram I. Vikram S (Mission Prarambh) rocket recently launched as first privately built Indian rocket to make it to space
    Agnikul Cosmos, Chennai Launch Vehicles for Small Satellites Successfully tested their fully 3D printed rocket engine, the Agnilet, in January 2021.
    Bellatrix Aerospace, Bangalore Electric Propulsion Systems Signed an agreement with Skyroot Aerospace for the use of electric propulsion technology in their launch vehicles.
    Pixxel, Bangalore Earth Observation Satellites Launched their first satellite, Anand, in February 2021, and plans to launch a constellation of 30 satellites by 2023.
    Kawa Space, Mumbai Space-Related Technologies Developed a ground station in collaboration with the Indian Institute of Technology, Bombay, to track and receive data from satellites.
    Skylo, Bangalore Low-Cost Satellite-Connected Devices for IoT Raised $103 million in Series B funding round led by SoftBank Group Corp in August 2021.
    SatSure, Bangalore Data Analytics Services for Agriculture Industry Launched their new product, SatSure Agri, in May 2021 to provide crop yield forecasting services to farmers.
    Dhruva Space, Bangalore Satellite-Based Communication Solutions Signed a Memorandum of Understanding with Ananth Technologies in October 2021 to provide satellite-based communication services to the aviation industry.

    Benefits of having an open space policy

    • Messaging tool: An open space policy can be used as a messaging tool, both for friends and potential foes. It can demonstrate India’s commitment to the peaceful use of outer space and build confidence among other nations.
    • Moderating fears and concerns: An open space policy can help to moderate fears and concerns about India’s space activities, by providing greater clarity on India’s space objectives and priorities.
    • Rebuilding confidence: An open space policy can help to rebuild confidence among other nations that India is committed to the peaceful use of outer space.
    • Outlining objectives: An open space policy can provide a clear outline of India’s short-term and long-term space objectives and priorities.
    • Better resource allocation: An open space policy can help to ensure better resource allocation for India’s space program, by providing a clear framework for decision-making and prioritization.

    Potential drawbacks of open space policy

    • Increased competition: An open space policy could lead to increased competition among countries and private entities to gain access to space and its resources. This could lead to a potential arms race in space and increased tensions between countries.
    • Security concerns: Open access to space could also create security concerns, as countries may develop space weapons or use space to conduct surveillance on other countries.
    • Environmental impact: An open space policy could also have environmental consequences, as increased space activity could lead to more space debris and pollution, potentially harming the Earth’s orbit and its environment.
    • Lack of regulation: Without proper regulation, an open space policy could lead to the exploitation of space resources, such as minerals and water, which could negatively impact the environment and lead to unfair distribution of resources.
    • Cost: Increased space activity and access could also lead to higher costs for countries and private entities, which may not be sustainable in the long run.

    Space Policy

    Conclusion

    • The new policy is expected to bring about significant changes in the Indian space ecosystem, including greater private sector participation, better resource allocation, and institutional clarity. This is an important step towards an open space policy that integrates both commercial and national security requirements in a balanced fashion.

    Mains Question

    Q. The Indian Space Policy 2023 has been approved by the Indian Cabinet Committee on Security. Note down some of its key aspects. What do you understand by mean open space policy? Discuss its advantages and potential drawbacks.

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  • Indian Economic Growth Prospects: A Comprehensive Analysis

    Growth

    Central Idea

    • India has had an established track record of high growth, with an average annual GDP growth of 6.6% in the decade leading up to the Covid-19 pandemic. In fiscal 2023, India is seen growing at 7%, making it the fastest-growing large economy. But with an imminent global slowdown and the full manifestation of the lagged impact of interest rate hikes since May 2022, the economy is expected to decelerate and grow at 6% in fiscal 2024.

    Indian economic growth prospects

    • Growth accounting: Growth accounting provides a useful framework to analyse medium-term prospects by decomposing their drivers into the contribution of capital, labour and efficiency.
    • Economic growth next five years: Indian economy expected to grow at 6.8 per cent per year for the next five years with 52 per cent of it from capital, 38 per cent from efficiency and 10 per cent from labour.
    • Changing growth model: The growth model is changing to an infrastructure and manufacturing-driven one.
    • Capital spending: The Union Budget has raised capital spending by almost a third in high-multiplier infrastructure segments. But such support to capex will moderate in the years to come, given fiscal consolidation pressures.
    • Investment ratio: Investment as a percentage of GDP has already touched a decadal high of 34 per cent in fiscal 2023. So far, the onus to lift the investment ratio has been shouldered by the government. The contribution of the private sector to investments is set to improve, primed as it is with healthier balance sheets, cash reserves and low leverage.
    • Contribution of productivity to growth: The creation of physical and digital infrastructure in conjunction with efficiency-enhancing reforms will raise the contribution of productivity to growth. The economy is expected to continue seeing efficiency gains from reforms such as GST and Insolvency and Bankruptcy Code (IBC).

    What is holding back a swift and broad-based lift in private investments?

    • Economic uncertainty, primarily, and geopolitical events to a lesser extent.
    • Sustainability challenge looms for the manufacturing sector as manufacturing and infrastructure growth are carbon-intensive.
    • Low-quality skilling of the workforce is holding back its contribution to growth.
    • Quality and the skilling of the workforce
    • Falling labour force participation of women

    What is holding back in Labour’s contribution to growth?

    • Labour’s contribution to growth is likely to be low not because India does not have sufficient people in the working-age group, this cohort is 67 per cent of the population and is set to expand by 100 million over the next decade. It is the quality and skilling of the workforce that is holding it back.

    Why private investment is essential for Indian economic growth?

    • Capital formation: Private investment helps in creating capital formation, which is essential for economic growth. It helps in building infrastructure, creating jobs, and generating income, which in turn drives consumer spending and boosts economic growth.
    • Innovation: Private investment is often associated with innovation and technological advancements. Companies that invest in research and development (R&D) can develop new products and processes that can boost productivity and create new markets. This, in turn, can lead to increased profits and more investment in R&D, creating a virtuous cycle of innovation and growth.
    • Employment: Private investment creates jobs, which is critical for economic growth and development. When companies invest in new projects or expand their operations, they often need to hire additional workers, which reduces unemployment and boosts consumer spending.
    • Foreign investment: Private investment is also an important driver of foreign investment. When companies invest in India, they often bring new technology, skills, and expertise that can help boost local industries and drive economic growth.
    • Tax revenue: Private investment can also help increase tax revenues, which can be used by the government to fund public goods and services such as education, healthcare, and infrastructure.

    Steps taken by the government to encourage private investment

    • Investment-Friendly Policies: The Indian government has launched several investment-friendly policies, such as Make in India, Start-up India, and Digital India, to encourage private investment in the country.
    • Infrastructure Development: The government is investing heavily in infrastructure development, including roads, railways, airports, and ports, to create a conducive environment for private investment.
    • Tax Reforms: The Indian government has implemented several tax reforms, such as the Goods and Services Tax (GST), to simplify the tax structure and make it more investor-friendly.
    • FDI Liberalization: The government has liberalized foreign direct investment (FDI) norms in several sectors, including defense, insurance, and retail, to attract more foreign investment.
    • Insolvency and Bankruptcy Code (IBC): The government has implemented the Insolvency and Bankruptcy Code (IBC), which has made it easier for businesses to exit, and has increased investor confidence in the Indian economy.
    • Production Linked Incentives (PLI): The government has launched the Production Linked Incentives (PLI) scheme to encourage manufacturing in India and make it more competitive globally.
    • Easing of Business Regulations: The Indian government has eased several business regulations to improve the ease of doing business in the country and attract more private investment.
    • Skill Development: The government has launched several initiatives, such as Skill India and Pradhan Mantri Kaushal Vikas Yojana, to develop the skills of the Indian workforce and make it more attractive to investors.

    Facts for prelims: Steps taken by the government to encourage labour force participation of women

    Initiatives

    Description
    Maternity Benefit Programme A scheme to provide financial assistance to pregnant women and lactating mothers for their health and nutrition needs.
    Pradhan Mantri Ujjwala Yojana A scheme to provide LPG connections to women from Below Poverty Line households.
    National Urban Livelihood Mission A programme to provide self-employment opportunities and skill development training to urban poor women.
    National Rural Livelihood Mission A scheme to provide self-employment opportunities and skill development training to rural women.
    Mahila E-Haat A digital platform to provide a market for women entrepreneurs to sell their products online.
    Beti Bachao Beti Padhao A campaign to address the declining child sex ratio and to promote education among girls.
    Sukanya Samriddhi Yojana A savings scheme for the girl child to ensure their education and marriage expenses are taken care of.

     Way ahead

    • Focus on green transition: As the manufacturing and infrastructure growth are carbon-intensive, so it’s important to have a significant and simultaneous focus on green transition. Having a high sustainability quotient can only embellish India’s credentials as a production destination.
    • For instance: Research suggests that between fiscals 2023 and 2027, over 15 per cent of India’s capex could be towards green initiatives involving renewable energy, transportation, altering the fuel mix, and green hydrogen. In the fragmented geopolitical milieu, which is shifting towards supply-chain diversification and friend shoring, India can attract foreign investments.
    • Enhancing labour force participation of women: The labour force participation of women is falling. This will have to be reversed through employment policies and investing in the health and education of women.
    • For instance: According to a World Bank report in 2018, India could add 1.5 percentage points to its GDP growth by improving the participation of women in its workforce.

    Growth

    Conclusion

    • India is going to become a $5 trillion economy by fiscal 2029, given the current growth dynamics. However, the impact of climate risk mitigation will be felt across revenue, commodity prices, export markets, and capital spending. To win the growth marathon, India’s focus must be sharp on the drivers of pace.

    Mains Question

    Q. Highlight India’s growth prospects in the next five years? Discuss the significance of private investment for economic growth and enlist factors that holding back the private investment.

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  • Centre gives nod for National Quantum Mission (NQM)

    quantum

    Central idea: The Union Cabinet has approved the National Quantum Mission (NQM) with a budget of ₹6,003 crore. The mission aims to fund research and development in quantum computing technology and associated applications.

    What is Quantum Computing?

    Explanation
    What is it? A type of computing that uses quantum-mechanical phenomena to perform operations on data.
    Qubits Quantum bits, which can be 0, 1, or both simultaneously (a superposition of 0 and 1).
    Computational speed It can perform certain calculations much faster than traditional computing, especially for complex algorithms and large amounts of data.
    Entanglement The use of entanglement allows quantum computing to process multiple pieces of data simultaneously, further increasing computational power.
    Research Governments, universities, and private companies around the world are researching quantum computing.
    Challenges Building practical quantum computers is a major challenge due to the fragility of qubits and the difficulty of controlling and measuring them accurately.
    Development stage Quantum computing is still in its early stages of development.

     

    National Quantum Mission (NQM)

    Mission duration 2023-2031
    Total cost Rs. 6,003.65 crore
    Leading Department Department of Science and Technology (DST)
    Supporting departments Other government departments
    Focus Development of physical qubit-based quantum computers
    Applications Healthcare and diagnostics, defense, energy, and data security
    India’s positioning Among the top six nations involved in quantum research and development

     

    Key focus areas

    (1) Thematic Hubs

    • The mission will be structured around four broad themes:
    1. Quantum Computing,
    2. Quantum Communication,
    3. Quantum Sensing and Metrology, and
    4. Quantum Material and Devices.
    • Thematic hubs will be established at research institutes and R&D centres already working in the field.
    • The effort is to create an ecosystem that favours quantum technology development in the country.

    (2) Satellite-based Communication

    • One of the key areas of focus for the NQM will be the development of satellite-based secure communication between ground stations and receivers located within a 3,000 km range over the first three years.
    • NQM will lay communication lines using Quantum Key Distribution over 2,000 km for satellite-based communication within Indian cities.
    • Tests will be conducted in the coming years for long-distance quantum communication, especially with other countries.

    (3) Quantum Computing

    • The mission will focus on developing quantum computers (qubit) with physical qubit capacities ranging between 50 – 1000 qubits, developed over the next eight years.
    • The development of computers up to 50 physical qubits will take three years.
    • 50 – 100 physical qubits will be developed in five years, and computers up to 1000 physical qubits will be developed in eight years.

    Applications

    • The mission would have a wide range of applications, including in healthcare and diagnostics, defense, energy, and data security.
    • Quantum technologies are expected to be far more powerful than traditional computing systems and capable of performing the most complex problems in a highly secure manner.

    Various challenges

    • Sub-zero temperatures: Current prototype systems require extremely cold (close to -273 C) conditions to work, along with developing the materials capable of such computations.
    • Still evolving: Quantum computers are still a work in progress globally, and no one has built a practical computer that can actually work and solve meaningful problems.
    • No global breakthrough: IBM, D-Wave of Canada or China’s Zuchongzhi 2.1, all of whom have prototype systems, have not built a quantum computer that can solve a problem that anybody cares about.

    Conclusion

    • The NQM represents a significant step forward for India’s research and development efforts in the quantum technology sector.
    • By focusing on the development of quantum computers and related technologies, the country is positioning itself as a key player in this field, with wide-ranging applications across multiple sectors.

     

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  • Windfall Tax back on local crude oil

    windfall

    The government has revised a windfall tax on domestically-produced crude oil. According to an official notification, the windfall tax rate of Rs 6,400 per tonne.

    What is a Windfall Tax?

    • Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
    • These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
    • The US Congressional Research Service (CRS) defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
    • One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.

    Features of Windfall Tax

    • Imposed on unanticipated and unearned gains: Windfall tax is imposed on the profits or gains that a company earns from external events or factors beyond their control, which they did not actively seek or pursue.
    • One-time tax: It is typically imposed as a one-time tax retrospectively, over and above the normal rates of tax, and is not a regular or ongoing tax.
    • Imposed on specific sectors or industries: Windfall taxes are usually imposed on specific sectors or industries where there is a significant increase in profits due to external factors such as price fluctuations, supply disruptions, or changes in regulations.
    • Rationale for imposition: The imposition of windfall taxes is based on the rationale of redistributing unexpected gains, funding social welfare schemes, and creating a supplementary revenue stream for the government.
    • Design problems: Introducing windfall taxes may suffer from design problems, given their expedient and political nature.
    • Potential impact on investment: Windfall taxes may lead to uncertainty in the market and negatively impact future investment, as companies may feel uncertain about investing in a sector with an unstable tax regime.

    When did India introduce this?

    • In July 2022, India announced a windfall tax on domestic crude oil producers who it believed were reaping the benefits of the high oil prices.
    • It also imposed an additional excise levy on diesel, petrol and air turbine fuel (ATF) exports.
    • Also, India’s case was different from other countries, as it was still importing discounted Russian oil.

    How is it levied?

    • Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.
    • The Central government has introduced a windfall profit tax of ₹23,250 per tonne on domestic crude oil production, which was subsequently revised fortnightly four times so far.
    • The latest revision was on August 31, when it was hiked to ₹13,300 per tonne from ₹13,000.

    Reasons for re-introduction

    • There have been varying rationales for governments worldwide to introduce windfall taxes like:
    1. Redistribution of unexpected gains when high prices benefit producers at the expense of consumers,
    2. Funding social welfare schemes, and
    3. Supplementary revenue stream for the government

    Issues with imposing such taxes

    • Design problems: Windfall taxes may suffer from design problems, given their expedient and political nature. There is also the issue of determining what constitutes true windfall profits and who should be taxed, which raises questions about the threshold for exemption of smaller companies.
    • Potential impact on investment: Windfall taxes may lead to uncertainty in the market and negatively impact future investment, as companies may feel uncertain about investing in a sector with an unstable tax regime.
    • Internalization of potential taxes: Introducing a temporary windfall profit tax may reduce future investment since prospective investors may internalize the likelihood of potential taxes when making investment decisions.
    • Threshold for exemption of smaller companies: Determining the threshold for exemption of smaller companies raises questions about which companies should be taxed and what level of profit is normal or excessive.
    • Difficulty in determining true windfall profits: There is also the issue of determining what constitutes true windfall profits, as it may be challenging to differentiate between profits attributable to external events versus those attributable to a company’s active investment strategy or business expansion.

     

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  • How Web3 differs from Web2?

    web

    Central idea: The article discusses the key features of Web3, including its decentralized nature, peer-to-peer transactions, and greater control over data and digital assets for users.

    What is Web3?

    • Web3, also known as Web 3.0, is the next generation of the World Wide Web that emphasizes decentralization, security, and user privacy.
    • It is essentially a vision of the internet where users have more control over their data, identities, and online interactions.
    • It is built on blockchain technology, which enables peer-to-peer transactions without the need for intermediaries such as banks, governments, or other third parties.
    • This decentralized approach to the web allows for greater transparency and trust, as well as more secure and private transactions.
    • Web3 technologies include blockchain platforms like Ethereum, IPFS (InterPlanetary File System) for distributed file storage, decentralized identity systems like uPort, and decentralized marketplaces like OpenBazaar.

    Features of Web 3

    Feature

    Web3

    Web2

    Centralisation

    		 Decentralised Centralised

    Intermediaries

    		 Peer-to-peer Rely on intermediaries

    Data ownership and control

    		 Users have control Large corporations have control

     

    Challenges for Web3:

    Challenge

    Scalability

    		 Current blockchain infrastructure can only handle a limited number of transactions per second.

    User Adoption

    		 Despite being around for over a decade, blockchain technology is still relatively unknown to the general public.

    Interoperability

    		 Web3 is being developed by different organisations, each with their own unique vision for the technology, leading to challenges in integration.

    Complexity

    		 Technical expertise is required to use and understand Web3, which may be a barrier for some users.

     

    Examples of Web3 use:

    Use

    Cryptocurrencies

    		 Built on blockchain technology, cryptocurrencies enable secure, decentralised transactions without the need for intermediaries.

    Decentralised Finance

    		 Aims to build a new financial system on top of blockchain technology. DeFi applications enable users to borrow, lend, and trade crypto.

    Decentralised storage

    		 Used to create decentralised social networks and develop decentralised identity verification systems.

     

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