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GS Paper: GS3

  • What is Dark Matter?

    Space scientists from the University of Sussex have found a new way to know more about dark matter. They have narrowed down the range of masses within which particles that could make up dark matter may lie in.

    What is the news about?

    • Around 95 % of the Universe is unknown to human beings.
    • It is often referred to as dark which has nothing to do with the colour of any substance but to do with the unknown nature of cosmic entities known as dark matter and dark energy.

    Trending in news these days is the Quantum Technology. (as it used to be until last year were- the Internet of Things (IoT) CSP 2019, Artificial Intelligence (AI) etc.)

    Must read all this news in a loop:

    1. National Mission on QC
    2. Quantum Coin
    3. Quantum Supremacy
    4. Quantum Entanglement

    What is Dark Matter?

    • Dark matter is composed of particles that do not absorb, reflect, or emit light, so they cannot be detected by observing electromagnetic radiation.
    • Dark matter is a form of matter thought to account for approximately 85% of the matter in the universe and about a quarter of its total mass-energy density or about 2.241×10−27 kg/m3.

    What does the research say?

    • Scientists carried out the research using quantum gravity, a field of study that tries to combine two of Einstein’s concepts — quantum physics and general relativity theory of gravity.
    • This is the first time anyone has thought of using what we know about quantum gravity to calculate the mass range for dark matter.
    • Their research shows that the dark matter particles can neither be super light nor super heavy unless there is a force acting on it that is yet unknown.

    Quantum gravity: The concept

    • Quantum gravity is a field of theoretical physics that seeks to describe gravity according to the principles of quantum mechanics.
    • Quantum mechanics is a fundamental theory in physics which describes nature at the smallest scales of energy levels of atoms and subatomic particles.
    • Here quantum effects cannot be ignored, such as in the vicinity of black holes or similar compact astrophysical objects where the effects of gravity are strong, such as neutron stars.

    Significance of the findings

    • This might help in finding out more about this mysterious force. There are currently four known forces in the Universe — gravitational, electromagnetic, weak and strong.
    • Scientists estimate that roughly 68 per cent of the Universe is made up of dark energy which is responsible for the accelerated expansion of the Universe.
    • Another 27 per cent is a dark matter whose existence was inferred from the observation that ordinary matter in galaxies, including the Milky Way, is far less than that required by gravity to hold the galaxies together.

    Why does the ‘Dark Matter’ matter?

    • Dark matter’s gravitational effects are also necessary to explain the motions of clusters of galaxies and the structure of the entire Universe at the largest scale.
    • On smaller scales, dark matter is too diffused to impact the motion of the Solar System, Earth or the origin and evolution of humans in any significant way.
    • But the nature of that dark matter is still unclear. It is most likely made of particles that do not couple to light because of which humans cannot see them.

  • National Marine Turtle Action Plan

    The Ministry of Environment Forest and Climate Change (MoEFCC) has launched the National Marine Turtle Action Plan.

    Do you know?

    Most people use the term “turtle” to reference any reptile with a shell on its back, but there are several differences between these two unique creatures. In actual sense tortoises are turtles, but not all turtles are tortoises.

    Tortoises have more rounded and domed shells where turtles have thinner, more water-dynamic shells.  Turtle shells are more streamlined to aid in swimming. One major key difference is that tortoises spend most of their time on land and turtles are adapted for life spent in water.

    National Marine Turtle Action Plan

    Aim: To strengthen and sustain collective and collaborative sea turtle conservation through the monitoring of key sites and a network of partners in the Indian sub-continent

    Project details

    • The project contains ways and means to not only promote inter-sectoral action for conservation but also guide improved coordination amongst the government, civil society and all relevant stakeholders.
    • It highlights actions to be taken for handling stranded animals on the shore, stranded or entangled animals in the sea or on a boat, reducing threats to marine species and their habitats, rehabilitation, etc.

    Why need such a project?

    • India has rich marine biodiversity along a vast coastline of over 7,500 km.
    • It has significant  nesting  and  feeding  grounds  for  four  species  of  marine  turtles,  namely  leatherback  (Dermochelys  coriacea),  green  (Chelonia  mydas), hawksbill (Eretmochelys  imbricata)  and  olive  ridley  (Lepidochelys  olivacea)
    • Even though all four species are listed under Schedule I  of the  Indian  Wild  Life  (Protection)  Act,  1972,  their populations in the  Indian waters are under threat.

  • Emphasising self-reliance in science

    The article discusses the features in the fifth Science, Technology and Innovation policy and also suggests the areas that needs attention.

    Draft Science, Technology, and Innovation Policy

    • The new policy envisages technological self-reliance and aims to position India among the top three scientific superpowers.
    • For that to happen, the draft policy says, we need to attract our best minds to remain in India by developing a people-centric science, technology, and innovation ecosystem.
    • It aims at doubling private sector’s contribution to the Gross Domestic Expenditure on Research and Development every five years.

    Following are the highlights of the policy

    1) Funding issue

    • Raising our R&D investment in science (about 0.6% now) to 2% of the GDP has been a national goal for a while.
    • Despite strong recommendations in the past by several scientific bodies and leading scientists and policymakers, we are still well short of that goal.
    • The 2020 draft policy blames this on “inadequate private sector investment” and adds that “a robust cohesive financial landscape remains at the core of creating an STI-driven Atmanirbhar Bharat.”
    • Government is trying to shift the responsibility of financing R&D to different agencies such as the States, private enterprises, and foreign multinational companies.
    • But it is doubtful if the various funding models that are presented are workable or practical, especially during a pandemic.
    • Private sector cannot be expected to pay for basic research as return on investment in basic research takes too long from a private sector perspective.
    • The fact is that basic science research in India is suffering from the lack of adequate funding despite grand proclamations.
    • We need to implement the self-financing revenue model proposed in the Dehradun Declaration for the CSIR labs back in 2015.

    2) A decentralized institutional mechanism

    • Policymakers are considering alternative mechanisms of governance of the financial landscape.
    • The issue of the administrative burdens of researchers and the problem of journal paywalls is also being considered.
    • Policymakers are also exploring international best practices of grant management.
    • The draft policy visualises a decentralized institutional mechanism for a robust STI Governance.
    • This intention is in fact defeated in the document itself, where several new authorities, observatories and centres have been proposed.
    • Decentralisation of administrative architecture is essential, but we need to explore the practical option of providing more autonomy to research and academic centres for financial management.

    3) Steps to tackle the discrimination

    • The number of suicides of students is on the increase in the IITs.
    •  In 2019, more than 2,400 students dropped out from the 23 IITs in just two years, over half of them belonging to the Scheduled Caste/Scheduled Tribe and Other Backward Classes.
    • Caste discrimination could be one of the reasons for these tendencies.
    • As a part of inculcating an inclusive culture in academia, the document promises to tackle discriminations “based on gender, caste, religion, geography, language, disability and other exclusions and inequalities”.
    • It mentions more representation of women and the LGBTQ community.

    Way forward

    • The document should prioritise important issues and amplify first the problems which have cultural and administrative dimensions.
    • The document does not mention how to stem the rot within, although it speaks extensively about science communication and scientific temperament.
    • There is need to facilitate an environment that encourages a mindset that constantly challenges conventional wisdom as well as open-minded inquiry among the students.

    Consider the question “As India aspires to be the scientific superpower, suggest the areas which the new Science, Technology and Innovation policy should focus on”

    Conclusion

    With the advent of new disruptive technologies, global competitiveness will be increasingly determined by the quality of science and technology, which in turn will depend on raising the standard of Indian research/education centres and on the volume of R&D spending. India has no time to waste.

  • Need for expansionary fiscal stance in the Budget

    The article highlights the issues with the system of Budget presentation and suggest the areas to focus on.

    Issues with expenditure and revenue estimates

    • Experience shows revenues being much less than the Budget projections: each year, this mistake is repeated and even amplified.
    • The expenditure estimates are even more disingenuous because they understate the actual expenditures that should be counted.
    • This concern has been repeatedly brought up by the Comptroller and Auditor General of India (CAG).
    • A CAG report in 2018 identified at least three methods of reducing the stated expenditure:
    • 1) Not paying for the full fertilizer subsidy.
    • 2) Not paying the central government’s dues to the Food Corporation of India (FCI) for the food subsidy, and forcing the FCI to borrow from the market.
    • 3) Using other special purpose vehicles to pay for infrastructure investment, like the Long Term Irrigation Fund.
    • In 2017-18, just those three items amounted to â‚č1,29,446 crore or 1.8% of GDP.
    • These strategies are problematic because they are non-transparent and they also force other agencies (like State governments and public sector enterprises) to go in for expensive commercial borrowing.

    What CGA data reveals

    • The data from the Controller General of Accounts show that between April and November 2020, revenues of the central government predictably collapsed, by around 18%, or â‚č181,372 crores, compared to the same period of the previous year.
    • But despite that, expenditures should have gone up, because the lockdown-induced collapse in an economic activity meant that public spending would be the only thing keeping the economy afloat.
    • In three rounds of stimulus packages government claimed to inject amounts of â‚č1.7-lakh crore in March, â‚č20-lakh crore in May, and then â‚č2.65-lakh crore in November
    •  However, the public accounts show that the total spending of the central government increased by only â‚č86,301 crores.
    • That was only a 4.6% increase — not even enough to keep pace with inflation.
    • In other words, the central government reduced its real spending over the period of the pandemic and economic crisis.
    • This fiscal stance obviously affects people and also adds to contractionary tendencies in the economy, and prolongs the severe demand recession.
    • Policies that destroy informal economic activities eventually come to harm the formal enterprises as well.

    Consider the question “There has been growing concerns that expenditure estimates presented in our Budget fail to represent the actual expenditure of the government. What are the reasons for that and how it could affect the reliability of government finances?”

    Conclusion

    The Budget this year needs to focus on moving to a more expansionary fiscal stance that prioritizes employment generation and public service provision.

  • Keep the wheels of economic recovery turning

    Ahead of the Budget, the article discusses the status of Indian economy and suggests the measures to be adopted in the budget to speed up the recovery.

    Estimates of damages and signs of economic recovery

    • The first advance estimates of national income published on January 7 project a contraction of 7.7% for real GDP.
    • The Q2 GDP estimates published by the National Statistical Office had suggested an economic recovery in India.
    • An improvement in the rate of contraction from 23.9% in Q1 to 7.5% in Q2 was seen as the beginning of a sustained recovery.
    • The Ministry of Finance, in its Monthly Economic Review highlighted it as signifying a ‘V’ shaped recovery and as a reflection of the resilience and robustness of the Indian economy.
    • The Monetary Policy Statement of the Reserve Bank of India (RBI) released on December 4, 2020 also projects positive growth in the remaining quarters of the financial year.

    State of the economy before pandemic

    • Growth rate of the economy had collapsed from 8.2% in Q4 of 2017-18 to a mere 3.1% in Q4 of 2019-20, sliding continuously for eight quarters.
    • The policy stance against this backdrop was premised on the hope that private corporate investment will pick up momentum sooner than later.
    • The RBI did the heavy lifting through five consecutive lowering of repo rate along with liquidity infusion programmes.
    • However, monetary-fiscal linkages are crucial to catalyse the demand.

    Crucial role played by the RBI

    • While being cautious of inflation, the RBI has decided to continue the accommodative stance in its latest monetary policy to support growth.
    • The CPI inflation after crossing 7% has cooled off to 4.6% in December.
    • Still, the real interest rates remain very low.
    • The efficacy of the new monetary framework (NMF) — the agreement between the RBI and Government of India in February 2016 to adopt inflation targeting in India — will be reviewed in March 2021, and we flag the need for revising the framework.
    • The RBI is continuing its liquidity infusion programmes including the on-tap Targeted Long Term Repo Operations (TLTRO).
    • This programme announced on October 9, 2020 for five stressed sectors has been extended to 26 stressed sectors notified under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0).
    • The RBI is also continuing its ‘operation twist’  with Open Market Operations (OMO) of â‚č10,000 crore scheduled for December 17, 2020.
    • Nevertheless, the RBI Governor has rightly pointed out that the signs of recovery are far from being broad-based.

    Stimulus for targeted state intervention

    • According to the International Monetary Fund’s Fiscal Monitor Database of Country Fiscal Measures, the fiscal stimulus for India is 1.8% of GDP.
    • The IMF, in its Fiscal Monitor, highlights the need to scale up public investment to ensure successful reopening, boost growth and prepare economies for the future.
    • What we need is stimulus not based on “business cycle” but from the perspective of much needed targeted state interventions in public health, education, agriculture and physical infrastructure, and to redress widening inequalities.
    • As private final consumption expenditure is sluggish, contracting 26.7% and 11% in Q1 and Q2, respectively, a “fiscal dominance” is expected in India for sustained economic recovery.
    • However, India cannot afford fiscal stimulus at the rates of advanced economies, due to a lack of fiscal space.

    Way forward

    • Plummeting private corporate investment in India is a matter of concern.
    • The fear of financial crowding out emanating from high fiscal deficit is misplaced in the context of India.
    • Economic recovery will be determined by the degree of containment of the pandemic and the sustained macroeconomic policies.
    •  Any abrupt withdrawal of ongoing economic policy support, both by the monetary and fiscal authorities, will be detrimental to growth in times of the pandemic.
    • The fiscal rules at the national and subnational government levels need to be made flexible.

    Consider the question “Recovery of Indian economy battered by the pandemic has not been complete. Suggest the fiscal measure to be adopted by the government to speed up the recovery.”

    Conclusion

    The fiscal stimulus needs to continue in FY 2021-22 to speed up India’s recovery along with the measures suggested above.

  • Why do Viruses mutate?

    SARS-CoV-2 variants have emerged independently in several countries, and research published over the past week indicates that the virus is changing more quickly than was once believed.

    Try this PYQ:

    Q.H1N1 virus is sometimes mentioned in the news with reference to which one of the following diseases?

    (a) AIDS

    (b) Bird flu

    (c) Dengue

    (d) Swine flu

    Mutation of Virus

    • Mutation, an alteration in the genetic material (the genome) of a cell of a living organism or of a virus that is more or less permanent and that can be transmitted to the cell’s or the virus’s descendants.
    • Like all life, viruses carry a genetic code in the form of nucleic acids — either DNA or RNA.
    • When cells multiply, the DNA within them replicates as well, to make copies for the new cells.
    • During replication, random errors are introduced into the new DNA, much like spelling errors when we write.
    • While the errors in DNA virus genomes can be corrected by the error-correcting function of cells in which they replicate, there are no enzymes in cells to correct RNA errors.
    • Therefore, RNA viruses accumulate more genetic changes (mutations) than DNA viruses.

    Effect of mutation on the virus

    • Evolution requires not just mutations, but also selection.
    • While most mutations are deleterious to the virus, if some allow a selective advantage — say better infectivity, transmission, or escape from immunity — then the new viruses out-compete the older ones in a population.
    • The mutations can be synonymous (silent) or non-synonymous (non-silent); the latter also changes an amino acid (protein building block) at that position in the coded protein.

    Mutations in COVID

    • As of January 26, about 29,000 infections are attributed to UK variants from 63 countries, many due to local transmission.

    Why is it harmful?

    • Viruses with mutations within the receptor-binding domain (RBD) of the Spike protein have the most potential to evade antibodies that develop as a result of natural infection or vaccination.
    • The RBD binds the cellular receptor allowing the virus to infect cells, and anti-RBD antibodies neutralize the virus.
    • Such mutations were recently found in variant viruses that emerged in the UK, South Africa and Brazil.

    Testing of mutation

    • Indirect tests are done in laboratories to assess if an emerging variant might escape antibodies developed after natural infection or vaccination.
    • Serum (the blood components that contain antibodies) from recovered patients or vaccinated people, and antibodies are known to neutralize the original virus, are tested.
    • Serial dilutions of the serum or antibodies are separately mixed with a fixed amount of the original and variant viruses, and the mixture is added to cells in culture.
    • After a period of incubation, cells are washed and stained. Cells infected and killed by viruses multiplying within them appear as clear zones (plaques) on a dark background.
    • The effectiveness of serum or antibody is expressed as an inhibitory concentration (IC) or plaque reduction neutralisation titer (PRNT) value.
    • The IC50 or PRNT50 value is the reciprocal dilution of serum or antibody that neutralises 50 per cent viruses in the sample.

    India’s response

    • Only the UK variant viruses have so far been reported from India — and that too, in travellers.
    • There is no reported local transmission, but considering its increased infectivity, this is likely to happen.
    • The evidence so far suggests that current vaccines would still protect against the UK variant, even if with reduced efficacy.
    • The evidence at this time, though of concern, does not indicate that current vaccines are failing.
    • But this has to be watched carefully, and all efforts made to limit transmission between people, which drives mutations and the emergence of variants.

  • [pib] International Energy Agency (IEA)

    The Framework for Strategic Partnership between the International Energy Agency (IEA) members and India was signed yesterday to strengthen mutual trust and cooperation & enhance global energy security, stability and sustainability.

    Try this MCQ:

    Q.The Global Energy Transition Index recently seen in news is released by:

    a) International Energy Agency (IEA)

    b) World Economic Forum (WEF)

    c) International Renewable Energy Agency (IRENA)

    d) International Solar Alliance

    International Energy Agency

    • The IEA is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.
    • It was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors.
    • At the end of July 2009, IEA member countries held a combined stockpile of almost 4.3 billion barrels of oil.
    • They are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.
    • The IEA acts as a policy adviser to its member states but also works with non-member countries, especially China, India, and Russia.
    • The Agency’s mandate has broadened to focus on the “3Es” of effectual energy policy: energy security, economic development, and environmental protection.

    Greater role play

    • The latter has focused on mitigating climate change.
    • The IEA has a broad role in promoting alternate energy sources (including renewable energy), rational energy policies, and multinational energy technology co-operation.

    Why need a partnership with IEA?

    • This partnership will lead to an extensive exchange of knowledge and would be a stepping stone towards India becoming a full member of the IEA.
    • India and the IEA members will work as Energy Security, Clean & Sustainable Energy, Energy Efficiency, Enhancing petroleum storage capacity in India, Expansion of gas-based economy in India, etc.

  • What are Off-Budget Borrowings?

    Finance Minister is all set to present the Union Budget 2021 on February 1st with all eyeing on off-budget borrowings to reduce Fiscal Deficit.

    Try this PYQ:

    With reference to the Union Government, consider the following statements:

    1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
    2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
    3. All the disbursements made from Public Account also need authorization from the Parliament of India.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    What are off-budget borrowings?

    • Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution that borrows on the directions of the central government.
    • Such borrowings are used to fulfill the government’s expenditure needs.
    • Such borrowings are a way for the Centre to finance its expenditures while keeping the debt off the books — so that it is not counted in the calculation of fiscal deficit.
    • But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.
    • As a result, a CAG report of 2019 pointed out that this route of financing puts major sources of funds outside the control of Parliament.

    Eyes on fiscal deficit

    • One of the most sought after details in any Union Budget is the level of fiscal deficit.
    • It is essentially the gap between what the central government spends and what it earns. In other words, it is the level of borrowings by the Union government.
    • This number is the most important metric to understand the financial health of any government’s finances.
    • As such, it is keenly watched by rating agencies — both inside and outside the country. That is why most governments want to restrict their fiscal deficit to a respectable number.
    • One of the ways to do this is by resorting to “off-budget borrowings”.

    How much would the borrowings be?

    • According to the last Budget documents, in the current financial year, the Centre was set to borrow Rs 5.36 lakh crore.
    • However, this figure did not include the loans that public sector undertakings were supposed to take on their behalf or the deferred payments of bills and loans by the Centre.

    How are off-budget borrowings raised?

    • Issuance of Bonds: The government can ask an implementing agency to raise the required funds from the market through loans or by issuing bonds.
    • Utilizing savings: For example, the food subsidy is one of the major expenditures of the Centre. In the Budget presentation for 2020-21, the government paid only half the amount budgeted for the food subsidy bill to the Food Corporation of India. The shortfall was met through a loan from the National Small Savings Fund.
    • Borrowing: Other PSUs have also borrowed for the government. For instance, public sector oil marketing companies were asked to pay for subsidized gas cylinders for PM Ujjwala Yojana beneficiaries in the past.
    • Bank sources: Public sector banks are also used to fund off-budget expenses. For example, loans from PSU banks were used to make up for the shortfall in the release of fertilizer subsidy.

    Its implications

    • Given the various sources of off-budget borrowing, the true debt is difficult to calculate.
    • For instance, it was widely reported that in July 2019, just three days after the presentation of the Budget, the CAG (cumulative aggregate growth) pegged the actual fiscal deficit for 2017-18 at 5.85% of GDP instead of the government version of 3.46%.

  • ‘The Inequality Virus’ Report

    The ‘Inequality Virus Report’ was recently released on the opening day of the World Economic Forum in Davos.

    About the report

    • The Inequality Virus Report was released by Oxfam.
    • It inquired into different forms of inequities, including educational, gender and health during the pandemic.

    Highlights of the report

    ‘Rise’ in wealth

    • Indian billionaires increased their wealth by 35% during the lockdown to â‚č 3 trillion, ranking India after the U.S., China, Germany, Russia and France.
    • The wealth of just the top 11 billionaires during the pandemic could easily sustain the MGNREGS or the Health Ministry for the next 10 years, stated the report.
    • A person (no citation needed!) who emerged as the richest man in India and Asia, earned â‚č90 crores an hour during the pandemic when around 24% of the people in the country were earning under â‚č 3,000 a month during the lockdown.
    • The increase in his wealth alone could keep 40 crores, informal workers, out of poverty for at least five months, said the report.

    Observations made

    Health: Only 6% of the poorest 20% have access to non-shared sources of improved sanitation, compared to 93.4 % of the top 20 %.

    Education: Till October, 32 crores students were hit by the closure of schools, of whom 84 % resided in rural areas and 70 %attended government schools. Dalits, Adivasis and Muslims were likely to see a higher rate of dropout. Girls were also most vulnerable as they were at risk of early and forced marriage, violence and early pregnancies, it noted.

    Gender: Unemployment of women rose by 15% from a pre-lockdown level of 18 %, which could result in a loss of India’s GDP of about 8 % or â‚č15 trillion. Women who were employed before the lockdown were also 23.5 percentage points less likely to be re-employed compared to men in the post lockdown phase.

    Recommendations

    • It recommended reintroducing the wealth tax and affecting a one-time COVID-19 cess of 4% on taxable income of over â‚č10 lakh to help the economy recover from the lockdown.
    • According to its estimate, a wealth tax on the nation’s 954 richest families could raise the equivalent of 1% of the GDP.

  • Shipping sector in india

    The article deals with the problems faced by India’s shipping sector and suggests the measures to improve the shipping sector.

    Importance of shipping for economic growth

    • The major economies of the world have always realized the potential of shipping as a contributor to economic growth.
    • For instance, control of the seas is a key component of China’s Belt and Road Initiative (BRI).
    • However, geographically, China is not as blessed as India, yet, seven of the top 10 container ports in the world are in China, according to the World Shipping Council.
    • What aided China’s growth are strong merchant marine and infrastructure to carry and handle merchandise all over the world.

    Lack of carrying capacity

    • All the shipping infrastructure in peninsular India only helps foreign shipping liners.
    • India has concentrated only on short-term solutions.
    • Foreign ship owners carry our inbound and outbound cargo. This is the case in container shipping too.
    • As a country, we have still not optimized our carrying capacity. 
    • Much of foreign currency is drained as transshipment and handling costs every day.
    • Due to this, members of our maritime business community have also preferred to be agents for foreign ship owners or container liners rather than becoming ship owners or container liners themselves.
    • As a result, there is a wide gap between carrying capacity and multi-folded cargo growth in the country.

    Way forward

    1) Regional cargo-specific ports

    • Instead of creating regional cargo-specific ports in peninsular India, we allowed similar infrastructural developments in multiple cargo-handling ports.
    • As a result, Indian ports compete for the same cargo.
    • We need to make our major ports cargo-specific, develop infrastructure on a par with global standards, and connect them with the hinterlands as well as international sea routes, they will automatically become transshipment hubs.
    • We need to only concentrate on developing the contributing ports to serve the regional transshipment hubs for which improving small-ship coastal operations is mandatory.

    2) Sagarmala

    • Sagarmala aims are port-led industrialization, development of world-class logistics institutions, and coastal community development.
    • Sagarmala will help in increasing domestic carrying capacity.
    • Shipbuilding, repair, and ownership are not preferred businesses in India and the small ship-owning community in India also prefer foreign registry instead of domestic registration.
    • If this has to change, there needs to be a change in the mindset of the authorities and the maritime business community.
    • ‘Make in India’ will result in multi-folded cargo growth in the country, we need ships to cater to domestic and international trade.
    • Short sea and river voyages should be encouraged.
    • Shipbuilding and owning should be encouraged by the Ministry.
    • The National Shipping Board is an independent advisory body for the Ministry of Shipping, where the Directorate General of Shipping (DGS) is a member.
    • The NSB should be able to question the functioning of the DGS, which is responsible for promoting carrying capacity in the country.
    • Coastal communities should be made ship owners.
    • This will initiate the carriage of cargo by shallow drafted small ships through coast and inland waterways.
    • Sagarmala should concentrate on consolidating the strength of the coastal youth and make them contribute to the nation’s economy with pride.

    Consider the question “How shipping contributes to the economic prosperity of a country? Suggest the steps need to be taken to develop its shipping sector.”

    Conclusion

    Shipping plays an important role in the economic development of a country. India needs to focus on developing it to achieve the economic prosperity.