November 2020
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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

PLI Scheme extended to 10 key Sectors

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PLI Scheme

Mains level: Paper 3- Analysing the importance of PLI Scheme

Manufacturing holds key to the economic prosperity of the country. The article examines the significance of Production Linked Incentive Scheme to boost manufacturing in India.

Need for increasing manufacturing capabilities

  • The world of manufacturing is now more interconnected than ever before with all major industries—automobile, electronics, pharmaceuticals, textiles, etc—operating as a global value-chain.
  • In order to integrate India as a pivotal part of this modern economy, there is a strong need to step up our manufacturing capabilities in sectors of high growth, including the cutting edge technology sectors.
  • A strong and dynamic manufacturing sector will fuel India’s economic growth by allowing companies producing in India to penetrate effectively into the global supply chains across various sectors.
  • Apart from enhancing exports, it will also reduce our import dependencies and spur domestic consumption.
  • ‘Atmanirbhar Bharat’ has brought manufacturing to the centre stage and emphasised its significance in driving India’s growth.

Factors favouring India

  • India offers an attractive domestic market, with a large population in the educated and earning segment.
  • It also has a strong institutional framework which allows for a smooth functioning of the industry.
  • A concerted effort towards attracting substantial investments for the creation of large manufacturing facilities, combined efficiency and economies of scale, can help Indian companies globally competitive and integrate with the global markets.

How Production Linked Scheme (PLI) will help achieve these objectives

  • The Production Linked Incentive (PLI) Scheme is designed to incentivise incremental production for a limited number of eligible anchor entities in each of the selected sectors.
  • These selected entities will invest in technology, plant & machinery, as well as in R&D.
  • The scheme will also have beneficial spillover effects by the creation of a widespread supplier base for the anchor units established under the scheme.
  • Along with the anchor unit, these supplier units will also help to generate massive primary and secondary employment opportunities.
  • The sectors for PLI have been shortlisted on the basis of their potential for economic growth, extent of benefit to the rural economy, revenue and employment generation.
  • A key benefit of the PLI Scheme is that it can be implemented in a very targeted manner to attract investments in areas of strength and to strategically enter certain segments of global value chains (GVCs).
  • This will help bring scale and size in key sectors and create and nurture global champions.
  • The scheme incentivises upcoming technologies that represent the biggest economic opportunities of the 21st century.
  • The scheme intends to generate large-scale employment by incentivising the development of traditional, labour intensive sectors like Food Processing and Textiles.
  • The current basket of Indian manufacturing constitutes of large volume of low-value products.
  • The scheme aims to correct this by encouraging large manufacturers to bring technology and to build capabilities for high-value output thereby providing higher returns to the upstream producers.
  • It will also enable an increase in exports.
  • The scheme envisages globally-integrated manufacturing in sectors such as automobile and auto components, pharmaceuticals, telecommunications, white goods and steel.
  • These are crucial sectors in terms of their strategic importance, contribution to the GDP and employment-generation potential.

Conclusion

Given the scale of incentives, which is around Rs 1,96,000 crore, the manufacturing sector of the country is set to transform in the next few years. Its contribution to the GDP will significantly improve, leading to unprecedented investment and job creation.


Source:-

https://www.financialexpress.com/opinion/pli-scheme-will-help-india-nurture-manufacturing-giants/2128992/

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Foreign Policy Watch: India-Canada

India-Canada relations

Note4Students

From UPSC perspective, the following things are important :

Mains level: Paper 2- India-China relations and increasing convergence

Track 1.5 dialogue

  •  The third round of India-Canada Track 1.5 Dialogue, comprising senior diplomats, officials and independent experts, will be held on a virtual platform.
  • This promising interaction represents a major, deliberate endeavour to boost the bilateral relationship.

Convergence on China issue

  • Common challenges of the COVID-19 era accelerated the momentum of bilateral engagement.
  • Canada’s travails with China, starting with the arrest of Huawei’s chief financial officer in Canada in December 2018.
  • Later, the ‘hostage diplomacy’ practised by Beijing which arrested two Canadian nationals, has caused huge stress in Canada-China relations, turning Canadian public opinion against China.
  • This opened the door to a closer relationship with India.
  • In this backdrop, developments concerning the Indo-Pacific —  strengthening of the Quad and the growing interest of France, Netherlands and Germany to be active players in the region — are of immense relevance to Ottawa.
  • The forthcoming dialogue can deepen the India-Canada convergence on this issue.

Principal area’s of bilateral cooperation

  • Canada-India merchandise trade exceeded C$10 billion in 2019.
  • Canada’s cumulative investment, including foreign direct investment and by Canadian pension funds, is a substantive C$55 billion.
  • Addressing virtually the ‘Invest India’ conference in Canada on  Prime Minister pointed out that mature Canadian investors have been present in India for many years and assured them that no barriers would come in their way.
  • Indian students are increasingly being educated in Canada, and a quarter million of them spent an estimated $5 billion in tuition fees and other expenses last year, a solid contribution to the Canadian economy.
  • Of 330,000 new immigrants accepted by Canada last year, 85,000 i.e. nearly 25%, were from India.
  • The Indian diaspora in Canada is now 1.6 million-strong, representing over 4% of the country’s total population.
  • The principal areas of bilateral cooperation are best defined by five Es: Economy, Energy, Education, Entertainment and Empowerment of women.
  • In particular, the digital domain holds immense potential, given Canada’s proven assets in technology — especially its large investment in Artificial Intelligence, innovation and capital resources, and India’s IT achievements, expanding digital payment architecture and policy modernisation.

Conclusion

Divided by geographical distance but united through clear common interests and shared values, India and Canada will begin their steady journey of progress, this time with a laser-like focus on common goals as well.

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Air Pollution

Air pollution in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Dealing with the air pollution through regulations

Despite efforts from several levels, air pollution is getting worse day by day. The article suggests the strategy to deal with the issue of air pollution.

Solvable problem

  • Pollution is very much a solvable problem but it cannot be solved on an emergency basis.
  • It has to be dealt with firmly and gradually.
  • Why gradually? Because there are many sources of pollution and it would be prohibitively costly to stop them or even significantly reduce them all at once.

Replacing existing technologies with existing technology

  • The biggest sources air polltion nationally are cooking fires, coal-fired power plants, various industries, crop residue burning, and construction and road dust. Vehicles are further down on the list.
  • Dealing with all these sources will require a gradual replacement of existing technologies with new technologies.
  • Cooking fires must be replaced with LPG, induction stoves, and other electric cooking appliances.
  • Old coal power plants must be closed and replaced with wind and solar power and batteries while newer plants must install new pollution control equipment.
  • No new coal-fired power plants should be built — with renewables being cheaper, coal is obsolete for power generation.
  • Other industries that use coal will have to gradually switch over to cleaner fuel sources such as gas or hydrogen while becoming more energy-efficient at the same time.
  • Farmers will have to switch crops or adopt alternative methods of residue management.
  • Diesel and petrol vehicles must gradually be replaced by electric or hydrogen fuel cell vehicles running on power generated from renewables.

Legal measures and issues

  • Governments can make clean investments more profitable and dirty investments less profitable by taxing polluting activities and subsidising clean investments.
  • The judiciary is more powerful but has far less scientific and technical competence.
  • It tends to act only during crises and focus on past mistakes rather than planning to prevent new ones.

Reforms in regulatory agency

  • Our existing laws do not allow the central and state pollution boards to levy pollution fee or cess based on pollution emissions.
  • Since closing down an industry is a drastic step, it almost never happens.
  • We need a regulatory agency that can levy pollution fee or cess, is that the regulatory decision need not be an all-or-nothing decision.
  • Pollution fees can start small, and the EPA can announce that they will rise by a certain percentage every year.
  • The regulatory agency should be given some independence,like
  • 1) a head appointed for a five-year term removable only by impeachment.
  • 2) a guaranteed budget funded by a small percentage tax on all industries.
  • 3) autonomy to hire staff and to set pollution fees after justification through scientific studies.
  • Three advantages of the regulator with such powers would be-
  • 1) Politicians in power can pass on the blame for decisions on pollution fees to the EPA.
  • 2) Pollution fees raise revenue for the government.
  • 3) If the law establishing an independent EPA is written to require that changes to pollution fees and regulations must be published in advance, and cannot involve abrupt changes, then surprises are avoided.
  • Industry opposition will be muted, especially if industry gets a piece of the revenue to invest in new technologies.

Conclusion

Our pollution problem has taken decades to grow into the monster that it is. It can’t be killed in a day. We need the scientific and technical capacity that only a securely funded independent EPA can bring to shrink pollution down to nothing.

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Regional Comprehensive Economic Partnership (RCEP)

China-led RCEP takes off without India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: RCEP

Mains level: RCEP and its economy

The Regional Comprehensive Economic Partnership (RCEP), a mega trade bloc comprising 15 countries led by China has come into existence.

Try answering this:

Q.Signing the Regional Comprehensive Economic Partnership (RCEP) agreement would have given more substance to India’s Act East policy. Analyse.

About RCEP

  • Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) between –
  1. The 10 members of ASEAN
  2. Additional members of ASEAN +3 = China, Japan, South Korea
  3. Members with which ASEAN countries have FTA = Australia, New Zealand
  • The group is expected to represent at least 30% of the global GDP and will emerge as the largest free trade agreement in the world.
  • It includes more than 3 billion people, has a combined GDP of about $17 trillion, and accounts for about 40 per cent of world trade.

India’s reluctance

  • India’s ties with China in recent months have been disturbed by the military tension in eastern Ladakh along the LAC.
  • In the meantime, India has also held a maritime exercise with Japan, Australia, and the United States for the “Quad” that was interpreted as an anti-China move.
  • However, these moves did not influence Japanese and Australian plans regarding RCEP.

 Leverage for China

  • Despite the pandemic, the RCEP is certainly leverage for China and shows the idea of decoupling from China is not a substantive issue in a regional sense.
  • The agreement means a lot for China, as it will give it access to Japanese and South Korean markets in a big way, as the three countries have not yet agreed on their FTA.

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North-East India – Security and Developmental Issues

 Assam-Mizoram Boundary Dispute

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Assam-Mizoram Boundary Dispute

Mains level: Interstate boundary disputes in India

The recent violence and tension on the Assam-Mizoram border underline the differences the two States have had since 1972 when Mizoram was carved out of Assam as a Union Territory.

Try answering this:

Q.Assam has had boundary problems with almost all of its north-eastern neighbours. Discuss.

*Also note the states bordering Assam.

What is the Dispute?

  • Mizoram was carved out of Assam as a Union Territory in 1972. In 1987, it became a full-fledged state.
  • The two states have sparred over where the border lies in the past, leading to the occasional violence.
  • The disagreement stems from differing views on which border demarcation to follow.
  • Mizoram’s perception of the border is based on an 1875 notification that flows from the Bengal Eastern Frontier Regulation Act of 1873.
  • The Act demarcated the Lushai Hills from the plains and valleys in the North East, restricting free travel between the two zones. The hills were deemed to be “excluded areas”.
  • Assam, for its part, goes by a 1933 notification by the state government that demarcated the Lushai Hills, as Mizoram was then known, from the province of Manipur.

The Assamese problem

  • Assam has had boundary problems with all its north-eastern neighbours, except Manipur and Tripura that had existed as separate entities.
  • The primary reason is that the other States, a part of Assam during the British rule, have contested the boundaries since they became States, beginning with Nagaland in 1963.
  • Assam has accepted several recommendations of border commissions set up by the Supreme Court, but other States have been sticking to “historical boundaries” that go back to the period before 1826.
  • However, the border residents have to bear the brunt of the unrest unless an acceptable solution is arrived at.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Sex Ratio in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Sex Ratio

Mains level: Sex ratio in India

A 2018 report on “vital statistics of India based on the Civil Registration System” shows crucial data of sex ratios of major states in India.

Sex Ratio

  • Sex ratio at birth is the number of females born per thousand males.
  • Sex ratios are among the most basic of demographic parameters and provide an indication of both the relative survival of females and males and the future breeding potential of a population.

Try this PYQ

Q.Consider the following specific stages of demographic transition associated with economic development:

  1. Low birth rate with a low death rate
  2. High birth rate with a high death rate
  3. High birth rate with a low death rate

Select the correct answer using the codes given below:

(a) 1, 2 and 3 only

(b) 3, 2 and 1 only

(c) 2, 3 and 1 only

(d) 3, 2 and 1 only

Statewise data

  • Arunachal Pradesh recorded 1,084 females born per thousand males, followed by Nagaland (965) Mizoram (964), Kerala (963) and Karnataka (957).
  • The worst was reported in Manipur (757), Lakshadweep (839) and Daman & Diu (877), Punjab (896) and Gujarat (896).
  • Delhi recorded a sex ratio of 929, Haryana 914 and Jammu and Kashmir 952.
  • The number of registered births increased to 2.33 crore in 2018 from 2.21 crore registered births the previous year.

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Foreign Policy Watch: India-Middle East

UAE’s Golden Visa Program

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Indian diaspora in Gulf region

The United Arab Emirates will extend its “golden” visa system — which grants 10-year residency in the West Asian nation — to certain professionals, specialised degree-holders and others.

Do you know?

 India is the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018 a/c to the World Bank.

Golden Visa Programme

  • The “Golden Card” programme is open to investors and “exceptional talents” such as doctors, engineers, scientists, students and artists.
  • The visa categories include:
  1. General investors who will be granted a 10 years visa
  2. Real estate investors, who can get a visa for 5 years Visa
  3. Entrepreneurs and talented professionals such as doctors, researchers and innovators: 10 years Visa
  4. Outstanding students — will also be permitted residency visas for 5 years
  • All categories of visas can be renewed upon expiry.

Benefits for India

  • The Indian expatriate community is reportedly the largest ethnic community in the UAE, constituting roughly about 30 per cent of the country’s population of around nine million.
  • Though most of the Indians living in the UAE are employed, about 10 per cent of the Indian population constitutes dependent family members, according to the Indian Embassy.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Places in news: Tristan da Cunha

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Map reading: Tristan Da Cunha

Mains level: Not Much

The isolated UK Overseas Territory of Tristan da Cunha, the world’s most remote human settlement, has been declared the largest fully protected marine reserves in the Atlantic Ocean at 687,000 square kilometres.

Note the location of Tristan da Cunha Islands in the Atlantic.

Tristan da Cunha

  • Tristan da Cunha, which is inhabited by less than 300 humans is a small chain of islands over 6,000 miles from London in the South Atlantic and the water around the islands are considered to be the richest in the world.
  • The mountainous archipelago is home to tens of millions of seabirds and several unique land birds that are comparable to the Galapagos island finches.
  • The island group is also home to the World Heritage Site of Gough and Inaccessible Islands, which is one of the most important seabird islands in the world.

Significance of protection

  • After joining the UK’s Blue Belt Programme, it will become the largest no-take zone in the Atlantic and the fourth largest on the planet.
  • This will close over 90 per cent of their waters to harmful activities such as bottom-trawling fishing, sand extraction and deep-sea mining.
  • The almost 700,000 square kilometres of the Marine Protection Zone (MPZ) is almost three times the size of the UK and will safeguard the future of sevengill sharks, Yellow-nosed albatrosses and rockhopper penguins.
  • MPZs involve the management of certain natural areas for biodiversity conservation or species protection and are created by delineating zones with permitted and non-permitted areas within that zone.

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Global Geological And Climatic Events

Leonid Meteor Shower

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Meteor terminology

Mains level: Not Much

The Leonid meteor showers are currently making their yearly appearance and will reach their peak in India on November 17 and 18.  In August this year, there was another meteor called Perseids Shower.

Try this question from CSP 2014:

Q.What is a coma, in the content of astronomy?

(a) Bright half of material on the comet

(b) Long tail of dust

(c) Two asteroids orbiting each other

(d) Two planets orbiting each other

What is Leonid Meteor Shower?

  • Meteor showers are named after the constellation they appear to be coming from.
  • The Leonids originate from the constellation Leo the Lion– the groups of stars which form a lion’s mane.
  • They emerge from the comet Tempel-Tuttle, which requires 33 years to revolve once around the Sun.
  • These meteors are bright and among the fastest moving– travelling at speeds of 71 km per second.
  • During this year’s showers, peaks of around 10 to 15 meteors are expected to be seen every hour.
  • The Leonid showers include fireballs– bright and large meteors than can last longer than average meteors, and “earthgazers”– meteors which appear close to the horizon with colourful and long tails.

What is a meteor shower?

  • On its journey around the Sun, the Earth passes through large swathes of cosmic debris.
  • The debris is essentially the remnants of comets — great frigid chunks of matter that leave behind dirty trails of rocks and ice that linger long after the comets themselves have passed.
  • As the Earth wades through this cloud of comet waste, the bits of debris create what appears from the ground to be a fireworks display in the sky — known as a meteor shower.
  • Several meteor showers can be seen around the year. According to NASA, over 30 meteor showers occur annually and are observable from the Earth.

Back2Basics:

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