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Nobel and other Prizes

Socialist icon Karpoori Thakur awarded Bharat Ratna

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Karpoori Thakur

Mains level: NA

Karpoori Thakur

Introduction

  • On January 23, the Indian government made a significant announcement, posthumously awarding the Bharat Ratna, India’s highest civilian honor, to Karpoori Thakur, the former chief minister of Bihar.
  • Thakur, affectionately known as ‘Jannayak’ or the leader of the people, leaves behind a legacy of enduring policy decisions that continue to shape Bihar and the nation.

Karpoori Thakur: Life and Career

  • A Leader of Contrasts: Thakur, born on January 24, 1924, in Bihar, emerged as the foremost backward caste leader in the state, despite hailing from the minority nai (barber) caste.
  • Political Activism: He actively participated in the freedom struggle, enduring imprisonment for his convictions.
  • Decades of Public Service: Thakur served as an MLA from 1952 until his passing in 1988, except for a brief period when he became an MP in 1977.
  • Respected Clean Image: Despite holding public office for three decades, Thakur maintained a clean image and refrained from personal enrichment through government resources.

Landmark Policy Decisions

  • Education Reform: Removed English as a compulsory subject for matriculation examinations, aiming to make education more accessible.
  • Prohibition of Alcohol: Enforced a ban on alcohol consumption to address societal issues stemming from alcohol abuse.
  • Job Opportunities for Engineers: Introduced preferential treatment for unemployed engineers in government contracts, leading to employment for approximately 8,000 engineers.
  • Layered Reservation System: Implemented the ‘Karpoori Thakur Formula’ in June 1970, providing 26% reservation, including 12% for OBCs, 8% for economically backward OBCs, 3% for women, and 3% for economically disadvantaged individuals from upper castes.

Challenges and Consequences

  • Immediate Opposition: Thakur’s reservation policy faced significant opposition, especially from upper castes, and his government fell due to its implementation.
  • Polarization and Derogatory Remarks: His caste background led to derogatory slogans and polarization in society, despite his clean governance record.
  • Political Fallout: Thakur’s decision to prioritize the reservation policy was perceived by some as hasty, unlike leaders who consolidated their positions before introducing similar policies.

Karpoori Thakur’s Enduring Legacy

  • Mandal-Kamandal Politics: Thakur’s legacy remains influential in the ongoing Mandal-Kamandal political landscape.
  • Recognition by Leaders: Bihar CM Nitish Kumar, himself from a numerically small EBC community, has closely associated himself with Thakur’s legacy.
  • Political Continuation: Thakur’s policies continue to shape the agendas of political parties in Bihar, highlighting the lasting impact of his commitment to social justice.

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International Space Agencies – Missions and Discoveries

Pulsars and Their Glitches: A Glimpse into Neutron Star Secrets

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pulsars, Neutron Stars, Glitches

Mains level: NA

Pulsars

Introduction

  • In 1967 a group of astronomers at the University of Cambridge stumbled upon a celestial mystery that would unravel the secrets of neutron stars.
  • Jocelyn Bell Burnell and Antony Hewish observed periodic signals emanating from the depths of space, eventually discovering the first pulsar, PSR B1919+21.

Pulsars and Neutron Stars

  • The Birth of a Pulsar: PSR B1919+21 initially puzzled scientists, who considered various explanations, even the possibility of signals from extraterrestrial life.
  • Neutron Stars: Neutron stars are born from the remnants of massive stars that didn’t become black holes. They are incredibly dense and primarily made up of neutrons.

Behind the Radiation: Lighthouse Effect

  • Radiation Beams: Pulsars emit focused beams of radio waves, similar to a lighthouse’s rotating light.
  • Rotation Slowdown: Neutron stars gradually slow down their rotation, and this process generates the pulsar’s radio signals.

The Mystery of Glitches

  • Sudden Speed-Ups: In 1969, scientists noticed unexpected and brief increases in the rotation speed of pulsars, known as “glitches.”
  • Unsolved Riddle: Even after more than four decades of study, the cause of these glitches remains a mystery, although scientists have developed some ideas.
  • Common Occurrence: Around 700 glitches have been observed in more than 3,000 pulsars.

Clues in the Rotation

  • Post-Glitch Behavior: During a glitch, the pulsar’s rotation rate temporarily increases before gradually returning to its previous speed.
  • Sign of Internal Changes: The slow post-glitch recovery suggests that the neutrons inside the star behave like a special kind of fluid, called a superfluid, with very low friction.
  • Superfluids and Vortices: Superfluids, like the one inside a neutron star, exhibit vortex behavior, which is like tiny whirlpools.

The Glitch Mechanism

  • Neutron Star Structure: Neutron stars have a solid outer layer with superfluid patches and a core primarily made of superfluid.
  • Vortex Pinning: Vortices within the superfluid like to stick to the crust or solid parts of the star, which keeps the superfluid rotating.
  • How Glitches Happen: As the star loses energy over time, the crust slows down, but the pinned vortices stay at their original speed. When the difference becomes too great, the vortices are released, transferring energy from the superfluid to the crust, causing a glitch in the pulsar’s rotation.

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Higher Education – RUSA, NIRF, HEFA, etc.

Science Ministry announces first recipients of VAIBHAV Fellowship

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Vaibhav Fellowship Scheme

Mains level: NA

Introduction

  • In a significant move to bolster India’s scientific research ecosystem, the Department of Science and Technology (DST) recently unveiled the first batch of ‘Vaibhav’ fellows.

About Vaibhav Fellowship Scheme

  • The Vaibhav Fellowship, initiated in June 2023, is designed to attract Indian-origin scientists residing abroad for short-term collaborations with Indian institutions.
  • These collaborations aim to foster research excellence and innovation by tapping into the expertise of Indian scientists from around the world.

Benefits for Vaibhav Fellows

  • Collaboration: Fellows commit to spending a month or two annually in India for a maximum of three years, collaborating with host Indian institutions.
  • Financial Support: Each selected Vaibhav fellow receives a stipend of ₹4 lakh per month, along with accommodation during their stay in India.
  • Renowned Host Institutions: Host institutions encompass esteemed names like the IISc, IIT, and the Tata Institute of Fundamental Research, among others.
  • Research Grant: The host institutions are provided with a research grant to support collaborative projects and technology start-ups initiated by the fellows.
  • Long-term Research Connections: Fellows are encouraged to build enduring research connections with host institutions, collaborate with faculty, and bring fresh ideas to the field, contributing to Indian university and research settings.

Vaibhav vs. Vajra: Distinct Objectives

  • Vaibhav Fellowship Scheme: Primarily targets the Indian diaspora for collaborations, with a focus on translational outcomes in critical areas of scientific research.
  • Vajra Scheme: Open to all foreign scientists, it promotes short-term visits by foreign faculty to Indian institutions, offering a broader platform for international collaboration.

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Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

Gender Equity in Education: A Focus on Early Childhood

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ASER 2023 Key Findings

Mains level: Gender Equity in Education

Gender Equity

Introduction

  • Education is a cornerstone of societal development, and addressing gender-related issues within it is crucial for progress
  • While ASER 2023 data on learning outcomes may suggest gender equity, a closer look reveals persistent gender discrimination.

Gender Equity: Learning Outcomes Parity

  • Gender Equity in Learning: Analysis of learning outcomes, such as test scores, shows parity between boys and girls in elementary and secondary classes across India.
  • Example: In Classes 3 and 5, girls and boys score equally in mathematics, both at 63 and 53, respectively.
  • Subject Scores: Gender differences in subject scores rarely exceed one percentage point.

Widening Gender Gap

  • Increased Education: Girls in India are receiving more education than ever before, with the mean years of schooling nearly tripling from 1.7 years in 1990 to 4.7 years in 2018.
  • Boys’ Progress: Boys have also seen educational improvements, with the average attainment increasing from 4.1 to 8.2 years.
  • Growing Gender Gap: Despite girls making significant strides in education, the gender gap, measured as the difference in attainment between males and females, has grown over time, from 2.4 years to 3.5 years.
  • Global Trends: India’s divergence from global trends is notable, as many countries have seen equal improvements in education for both genders.

Barriers to Education

  • Progressive Gender Gap: As education levels rise, barriers for girls become more significant, influenced by social norms, stereotypes, and adolescent-related factors.
  • Class 1 to Class 8: Dropout rates shift dramatically, with nearly twice as many girls dropping out by Class 8 compared to boys.

Early Childhood Education (ECE)

  • Gender Bias in ECE: Gender discrimination begins at the earliest stages of education, as revealed by the Annual Status of Education Report “Early Years.”
  • Private vs. Government Schools: More boys are enrolled in private institutions, while girls are often sent to free government schools, reflecting societal biases.
  • Age Correlation: A five percentage point gender difference in enrollment exists at the age of four, growing to eight percentage points by age eight.
  • Impact of Gender Norms: Societies valuing male children’s education tend to withdraw more girls from school.

Focus on ECE

  • Policy Shift Needed: Addressing the gender gap in education requires a shift towards Early Childhood Education (ECE) to tackle the roots of gender norms.
  • Age of Influence: Children between three and seven are highly impressionable, forming biases about gender roles during this period.
  • Challenges: Insufficient funding, poor quality, and the absence of legislation for universal ECE access pose challenges in India.
  • Investment Returns: Longitudinal studies indicate that every dollar invested in ECE yields substantial returns, proving its cost-effectiveness.
  • Government Initiatives: Programs like “Beti Bachao, Beti Padhao” and the Draft National Education Policy emphasize the importance of ECE.

Conclusion

  • The gender gap in education, particularly in the early years, requires immediate attention and intervention. Establishing a regulatory framework, adequate funding, and quality standards for ECE is essential.
  • By eliminating gender stereotypes in preschools, we can work towards erasing the gender gap in education.
  • The benefits of investing in girls’ education are vast, ranging from reduced poverty and crime to improved economic development.
  • It is time to prioritize early childhood education to create a brighter and more equal future for all.

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Police Reforms – SC directives, NPC, other committees reports

Supreme Court Labels Gujarat Police Actions as “Atrocity”

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Police Atrocities

Introduction

  • In a significant development, the Supreme Court of India, made oral observations condemning the 2022 incident involving four Gujarat Police officers.
  • These officers had publicly flogged some men, restraining them to a pole, under the allegation of disrupting a garba event in the Kheda district.

Kheda Incident

  • Public Flogging and Video Documentation: The incident in question involved the public flogging of some men who were tied to a pole. Shockingly, videos of the brutal act were also recorded.
  • Lack of Legal Authority: Justice B.R. Gavai questioned whether the officers had any legal authority to restrain individuals in such a manner and subject them to physical abuse. Justice Sandeep Mehta expressed similar concerns.

Ethical Dimensions Put to Question

  • Human Rights: Police misconduct and brutality violate citizens’ fundamental rights, including the right to life, liberty, dignity, equality, and justice. They also breach international human rights standards.
  • Rule of Law: Such actions undermine democratic societies based on the rule of law, diminishing law enforcement agencies’ legitimacy and fostering a culture of impunity where police act as judge, jury, and executioner.
  • Professionalism: Police misconduct erodes the professionalism, integrity, and morale of the police force. It negatively impacts training, discipline, supervision, and leadership, pressuring honest officers to conform to unethical practices.
  • Social Harmony: Police misconduct disrupts social cohesion, breeding resentment, fear, anger, and distrust, especially among marginalized groups. It contributes to social conflicts, violence, and extremism, threatening national peace and stability.

Violation of D.K. Basu Judgment (1996)

  • Supreme Court’s Historical Verdict: The actions of the police officers were found to be in contempt of the Supreme Court’s landmark D.K. Basu judgment of 1996. This judgment emphasized the importance of protecting individuals from torture and abuse by the police and law-enforcing officers.
  • Prohibition of Third-Degree Methods: The D.K. Basu verdict explicitly prohibited the use of “third degree” methods or torture during interrogation and investigation.

Supreme Court’s Response

  • Ignorance of Law: Justices Gavai and Mehta were not convinced by the argument put forth by senior advocate Siddharth Dave, representing the police officers, that there was no “willful disobedience” of the D.K. Basu verdict by his clients. The Bench questioned whether ignorance of the law could serve as a defence in this context.
  • Duty of Police Officers: The Bench emphasized that every police officer must be aware of the legal principles established in the D.K. Basu judgment.

Conclusion

  • The Supreme Court’s strong stance against the actions of the Gujarat Police officers in this case underscores the importance of upholding the principles of justice, human rights, and the rule of law.
  • This incident serves as a reminder of the duty and responsibility that law enforcement agencies have in protecting the rights and dignity of individuals while performing their duties.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Gini Coefficient: A Deeper Dive into the SBI Income Inequality Report

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gini Coefficient

Mains level: Not Much

Gini Coefficient

Introduction

  • A recent report by the State Bank of India (SBI) has illuminated a significant decline in income inequality in India over the past decade.
  • This report, which analyzes taxpayer data, indicates a substantial reduction in the Gini coefficient, a widely accepted measure of income inequality.

What is the Gini Coefficient?

  • The Gini Coefficient, often referred to as the Gini Index or Gini Ratio, is a measure of income or wealth inequality within a specific population, region, or country.
  • It assigns a numerical value between 0 and 1.
  • 0 represents perfect income or wealth equality (everyone has the same income or wealth), and 1 signifies perfect inequality (one person or household has all the income or wealth, and everyone else has none).
  • To calculate the Gini Coefficient, income or wealth data is typically arranged in ascending order, from the poorest to the richest individuals or households.
  • A Lorenz curve is plotted, which is a graphical representation of the actual income or wealth distribution. It compares the cumulative income or wealth of the population to the cumulative share of the population.
  • The Gini Coefficient is calculated by measuring the area between the Lorenz curve and the line of perfect equality. This area is then divided by the total area under the line of perfect equality.

Gini Coefficient and Income Inequality

  • Gini Coefficient: The Gini coefficient measures income inequality, ranging from 0 (perfect equality) to 1 (perfect inequality).
  • Reported Decline: The Gini coefficient has dropped from 0.472 in 2014-15 to 0.402 in 2022-23, marking a nearly 15% reduction in income inequality.

Examining Income Inequality across Employment Types

  • Taxpayer Data Limitation: The SBI report focuses on taxpayer data, potentially excluding a significant portion of income earners.
  • Significant Majority below Tax Threshold: Approximately 80% of income earners earn less than ₹2.5 lakh per annum, the minimum taxable amount.

A Closer Look at the Gini Coefficient

  • Preliminary Analysis: Data from the 2017-18 and 2022-23 Periodic Labour Force Surveys (PLFS) is analyzed to evaluate changes in income inequality among various employment categories.
  • Gini Coefficient Trends: While the Gini coefficient decreases slightly from 0.4297 to 0.4197, the changes are minimal.
  • Disaggregated Gini: The Gini coefficient falls for regular wage and casual wage workers but rises for the self-employed, though the shifts are modest.

Uncovering Income Polarization

  • Beyond the Gini Coefficient: Income polarization becomes evident when examining the top 10% compared to the bottom 30% of income earners.
  • Divergence in Income Growth: The top deciles witnesses’ faster income growth (around 7.23%) compared to the bottom 20% and even the third decile. In contrast, the bottom decile experiences the slowest growth (approximately 1.67%).
  • The 90/10 Ratio: The ratio of incomes between the 90th percentile (top 10%) and the 10th percentile (bottom 10%) rises from 6.7 in 2017-18 to 6.9 in 2022-23, indicating increased income disparity.
  • Variation among Employment Types: The 90/10 ratio falls for wage earners but significantly increases for the self-employed, particularly among top earners.

Analyzing the Changes

  • Preliminary Assessment: While this analysis offers initial insights, further research is needed to comprehensively understand these trends.
  • Impact of Women’s Participation: The rise in women’s labor force participation, primarily in low-paid self-employed roles, may explain the increased polarization among income earners.
  • Tax Data Limitations: Taxpayer data might not capture the pace of inequality reduction among the broader population.
  • Complex Inequality Dynamics: Reduction in the Gini coefficient conceals income divergence, and future growth may either mitigate or exacerbate this disparity.

Conclusion

  • The SBI report’s revelation of declining income inequality in India is a positive development.
  • However, a deeper examination of income distribution across employment types and deciles unveils a more complex picture.
  • Income polarization, particularly among the self-employed, challenges the overarching narrative of reduced inequality.

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How Basic Structure doctrine became one of the strongest safeguards for Indian democracy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Kesavananda Bharati case

Mains level: relevance and importance of the Basic Structure doctrine in maintaining a balance of power in a democracy

The Basic Structure Doctrine - UNITED LIBERAL FOUNDATION

 

Central Idea:

The article underscores the significance of the Kesavananda Bharati case in Indian constitutional history, highlighting how it established a crucial safeguard against potential tyranny and dictatorship. The case introduced the concept of the Basic Structure doctrine, asserting that even constitutional amendments passed by a parliamentary majority could be declared unconstitutional if they violated the fundamental principles integral to the Indian Constitution.

Key Highlights:

  • The Kesavananda Bharati case marked a turning point by introducing the Basic Structure doctrine, preventing the constitutionalization of gross aberrations or tyranny through amendments.
  • The Basic Structure doctrine empowers the judiciary to act as a check against potential misuse of power by the majority, safeguarding democracy.
  • The article traces the evolution of this doctrine from earlier cases, such as Shankari Prasad, Sajjan Singh, and Golaknath, leading up to the Kesavananda Bharati judgment.

Key Challenges:

  • The Basic Structure doctrine has faced challenges from those seeking to dilute or ignore its significance, posing a threat to the enduring democratic principles it upholds.
  • The potential for misuse or misinterpretation of the Basic Structure doctrine could lead to controversies and confrontations in politics and governance.

Key Terms:

  • Basic Structure: The fundamental principles and core features of the Indian Constitution that cannot be altered by constitutional amendments.
  • Parliamentary Majority: The voting majority in the Parliament required to pass constitutional amendments.
  • Constitutional Amendments: Changes made to the constitution, often requiring a special majority in the Parliament.

Key Phrases:

  • “Basic Structure makes it impossible to constitutionalize gross aberrations.”
  • “Anti-majoritarian safeguards”: Mechanisms in place to protect against the potential tyranny of the majority in a democracy.

Key Quotes:

  • “Even a constitutional amendment can be declared unconstitutional if it violates the Basic Structure.”
  • “The power of amendment… does not include the power to abrogate the Constitution.”

Anecdotes:

  • The unsavoury episode of Chief Justice A N Ray attempting to unilaterally review the Kesavananda Bharati judgment in 1975 is highlighted, adding drama to the historical significance of the case.
  • The description of Nani Palkhivala’s arguments as “divinity speaking through him” during the case adds a personal touch to the historical narrative.

Key Statements:

  • “The highest bulwark of such safeguards is the Indian Constitution.”
  • “Long live Basic Structure, despite the attempt of constitutional pygmies to jettison, dilute or ignore it.”

Key Examples and References:

  • Reference to the Shankari Prasad, Sajjan Singh, and Golaknath cases to illustrate the evolution of the Basic Structure doctrine.
  • Mention of the 24th to 26th constitutional amendments enacted in 1971 to overrule specific judgments and provide context to the Kesavananda Bharati case.

Key Facts and Data:

  • The Kesavananda Bharati case involved 703 pages of judgment spread over 11 judicial opinions, making it India’s longest argued case with the largest bench.
  • The Golaknath case in 1967 had a 6-5 majority holding the entire Part 3 of the Constitution unamendable.

Critical Analysis:

The article presents a critical analysis of the Kesavananda Bharati case, highlighting its significance as a safeguard against potential misuse of power. It underscores the importance of the Basic Structure doctrine in preserving democratic principles and preventing constitutional aberrations.

Way Forward:

  • Emphasize the continued relevance and importance of the Basic Structure doctrine in maintaining a balance of power in a democracy.
  • Advocate for a nuanced understanding and application of the doctrine to ensure its integrity while addressing any legitimate concerns about its misuse.

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

The truth about India’s booming toy exports

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Non-tariff barriers (NBTs). Quality control order (QCO)

Mains level: success of 'Make in India' policies in the toy industry

India's Toy Industry: Unravelling the Recent Export Surge - Civilsdaily

Central Idea:

The article discusses India’s toy industry’s recent shift to net exports, attributing the success to protectionist measures under the ‘Make in India’ initiative. It raises questions about the efficacy of these policies and calls for a public release of an officially sponsored research study by the Indian Institute of Management Lucknow (IIM-L) to facilitate a more informed policy discussion.

Key Highlights:

  • Between 2014-15 and 2022-23, India’s toy exports increased significantly, turning the country into a net exporter, while imports declined.
  • An unpublished IIM-L case study, sponsored by DPIIT, credits the export success to promotional efforts under ‘Make in India.’
  • The article questions the reported success and analyzes official statistics to understand the factors behind the industry’s turnaround.

Key Challenges:

  • Lack of transparency regarding the IIM-L case study, creating ambiguity about the actual impact of ‘Make in India’ on the toy industry.
  • Concerns about the sustainability of protectionist measures and the potential for “rent-seeking” behavior in the absence of complementary policies.
  • The decline in labor productivity and other indicators in the toy industry despite protectionist measures.

Key Terms:

  • ‘Make in India’ initiative.
  • Net exports (exports minus imports).
  • Protectionism.
  • Non-tariff barriers (NBTs).
  • Quality control order (QCO).
  • Annual Survey of Industries (ASI).
  • Fixed capital per worker.
  • Gross value of output.

Key Phrases:

  • “Turnaround in the labour-intensive industry.”
  • “Rising protectionism since 2020-21.”
  • “Infant industry argument.”
  • “Learning by doing.”
  • “Virtuous circle of expanding domestic capabilities.”

Key Quotes:

  • “India has turned into a net toys exporter since 2020-21. ‘Make in India’ policies made it possible.”
  • “Perhaps the IIM-L’s study uses different evidence to buttress its contention.”
  • “Rising tariff and non-tariff barriers have made it possible.”

Key Statements:

  • The article questions the correlation between ‘Make in India’ policies and the reported success in the toy industry.
  • Concerns are raised about the impact of protectionism on the industry’s long-term competitiveness.
  • Calls for transparency and public release of the IIM-L case study to facilitate informed policy discussions.

Key Examples and References:

  • Reference to the tripled customs duty on toys in February 2020 and the imposition of non-tariff barriers since January 2021.
  • Mention of the decline in labor productivity and other indicators in the toy industry despite protectionist measures.

Key Facts and Data:

  • Toy exports increased significantly between 2014-15 and 2022-23, making India a net exporter.
  • The trade balance for toys turned positive in 2020-21 after a gap of 23 years.
  • Customs duty on toys was raised to 70% in March 2023.

Critical Analysis:

  • The article critically examines the reported success of ‘Make in India’ policies in the toy industry, emphasizing the role of protectionism.
  • Concerns are raised about the sustainability of protectionist measures and the need for complementary policies to enhance domestic capabilities.
  • The decline in labor productivity challenges the notion that protectionism has led to improved industry competitiveness.

Way Forward:

  • Advocate for transparency by making the IIM-L case study public to inform meaningful policy discussions.
  • Emphasize the need for a comprehensive policy approach, combining protectionism with investment policies and infrastructure development.
  • Encourage a dialogue on the long-term impact of protectionist measures on the toy industry’s competitiveness and the potential for “rent-seeking” behavior.

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Start-up Ecosystem In India

The need to overhaul a semiconductor scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Semiconductor Fabless Accelerator Lab (SFAL)

Mains level: Semiconductor global value chain (GVC)

Design-linked incentive (DLI) scheme - An analysis | PT's IAS Academy

Central Idea:

The Semiconductor Design-Linked Incentive (DLI) scheme in India, designed to foster semiconductor design capabilities, faces challenges due to limited results and structural issues. The article suggests a comprehensive revamp, addressing key challenges, emphasizing the importance of the design ecosystem, and proposing a shift in focus to cultivate indigenous semiconductor design capabilities.

Key Highlights:

  • The DLI scheme, part of the $10 billion Semicon India Program, has approved only seven start-ups, falling significantly short of the target to support 100 over five years.
  • India’s semiconductor strategy aims to reduce dependence on imports, build supply chain resilience, and leverage its comparative advantage in chip design.
  • The article underscores the need to prioritize the design stage for stimulating India’s semiconductor industry.

Key Challenges:

  • The DLI scheme has witnessed lackluster results and low participation.
  • Barriers include restrictions on foreign funding and ownership for beneficiary start-ups.
  • Modest incentives and a challenging funding landscape impede semiconductor start-ups in India.
  • Concerns are raised about the nodal agency’s role, posing potential conflicts of interest.

Key Terms:

  • Semiconductor Design-Linked Incentive (DLI) scheme.
  • Semiconductor global value chain (GVC).
  • Foundry and assembly stages of the semiconductor GVC.
  • Electronic design automation (EDA) tools.
  • Production-Linked Incentive schemes.
  • Semiconductor Fabless Accelerator Lab (SFAL).
  • India Semiconductor Mission.

Key Phrases:

  • “Cultivate semiconductor design capabilities.”
  • “Build supply chain resilience.”
  • “Delink ownership from semiconductor design development.”
  • “Shift focus to facilitate design capabilities for a wide array of chips.”
  • “Revise policy to boost financial stability and provide global exposure.”

Key Quotes:

  • “Stimulating the design ecosystem is less capital-intensive than foundry and assembly stages.”
  • “The primary aim should be to cultivate semiconductor design capabilities in India.”
  • “Enhance the financial outlay of the scheme substantially to support this policy shift.”

Key Statements:

  • The article critiques the DLI scheme for its limited results and highlights barriers hindering effectiveness.
  • Challenges faced by semiconductor start-ups, including funding issues and policy restrictions, are discussed.
  • The need for a revamped DLI scheme, focusing on broader objectives and increased financial support, is emphasized.

Key Examples and References:

  • Reference to the Karnataka government’s Semiconductor Fabless Accelerator Lab (SFAL) as a potential model for an implementing agency.
  • Mention of the Union government’s recent statement emphasizing the importance of “India-designed chips.”

Facts and Data:

  • Only seven start-ups approved under the DLI scheme, significantly below the target of supporting 100.
  • Modest incentives under the DLI scheme, capped at ₹15 Crore for Product DLI and ₹30 Crore for Deployment Linked Incentive.
  • The Semiconductor Design-Linked Incentive (DLI) scheme is a part of India’s $10 billion Semicon India Program.

Critical Analysis:

  • The article critically evaluates the current DLI scheme, emphasizing the need for a more comprehensive and effective approach.
  • Concerns about the nodal agency’s role and potential conflicts of interest are highlighted.
  • The article stresses the significance of cultivating indigenous semiconductor design capabilities in India for sustained success.

Way Forward:

  • Revise the DLI scheme to delink ownership, enhance financial incentives, and broaden the focus on semiconductor design capabilities.
  • Consider a new implementing agency, such as the Semiconductor Fabless Accelerator Lab (SFAL), for a more effective approach.
  • Emphasize the importance of cultivating indigenous semiconductor design capabilities in India for long-term success.

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