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  • Government Budgets

    A big step towards the transformation of various sectors  

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the news?

    The 2024-25 Budget is a progressive proposal featuring several commendable initiatives aimed at boosting India’s economic growth and advancing social progress.

    Prioritized areas in the recent Budget 2024-25

    • Job Creation and Skilling: The budget allocates ₹1.48 lakh crore towards job creation, employment, and skilling, emphasizing the importance of developing a skilled workforce to support India’s service sector. This shift from a focus on manufacturing to skilling reflects a strategic move towards building a service-oriented economy.
    • Energy Transformation: There is significant investments are directed towards energy transformation initiatives, including solar panel manufacturing and nuclear energy development. The budget allocates ₹89,287 crore to crucial sectors, indicating a commitment to sustainable energy solutions.
    • Healthcare Initiatives: The budget includes measures to enhance healthcare access, such as customs duty exemptions on life-saving cancer medications and components for advanced medical equipment.
    • Technology and Innovation: A framework with nine priorities is introduced to leverage advanced technology and foster collaboration between the government and private sector, promoting growth and innovation across various sectors.
      • For example: The budget allocates ₹1 lakh crore specifically for research and innovation, accompanied by a 50-year interest-free loan.

    What does the budget say on Accessibility and Affordability?    

    • Customs Duty Exemptions on drugs: The budget exempts customs duties on three essential cancer medications, making them more affordable and accessible to patients. This move addresses the high costs associated with cancer treatments, which often pose significant barriers to access.
    • Support for Medical Equipment: Customs duties are also waived for components of X-ray tubes and digital detectors, which are crucial for advanced medical technologies.
    • Alignment with Domestic Capacity: The budget emphasizes aligning customs duties with domestic capacity under the phased manufacturing program, fostering a conducive environment for startups and encouraging local manufacturing.

    On Prioritizing Inclusivity and Fiscal Prudence

    • Women’s Workforce Participation: The budget focuses on boosting women’s participation in the economy through targeted initiatives such as hostels, creches, and skilling programs.
      • According to a report by McKinsey, India can increase its 2025 GDP, estimated at $4.83 trillion, by 16%-60% simply by enabling women to participate in the economy on par with men
    • Research and Development: With India spending only 0.7% of its GDP on research, the budget encourages private sector collaboration with the government to increase investments in R&D. This collaboration is vital for fostering innovation and ensuring sustainable economic growth.
    • Public-Private Partnerships: The budget promotes public-private partnerships to enhance healthcare delivery and infrastructure, reflecting a commitment to inclusivity and collaboration in achieving economic and social goals.

    Conclusion: The government should expand the scope of skilling programs to cover a wider range of sectors and skill levels while ensuring the workforce is equipped to meet the evolving demands of the service-oriented economy.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Is immunity for the President and Governors absolute?  

    Explained | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Why in the news?

    The Supreme Court has agreed to examine if the immunity granted to the President and Governors under Article 361 violates fundamental rights and constitutional principles.

     What is the case?  

    • The Supreme Court is examining a petition filed by a contractual woman employee of the West Bengal Raj Bhavan, who has accused Governor C.V. Ananda Bose of sexual harassment and molestation.
      • The petitioner argues that the “absolute immunity” granted to the Governor under Article 361 of the Constitution undermines her fundamental rights and the fairness of the legal process.

    Immunity Under Article 361: 

    • Article 361 provides immunity to the President and Governors from being answerable to any court for acts performed in their official capacity.
    • Specifically, clause (2) of Article 361 states that no criminal proceedings can be initiated or continued against the President or a Governor during their term of office. The petitioner contends that this immunity should not apply to illegal acts that violate fundamental rights.
    • The petitioner argues that the Governor’s immunity caused negligent handling of her complaint by police, delaying justice and hindering investigations.
    • The Supreme Court will determine if Article 361(2) immunity is absolute or can be challenged in serious cases like sexual harassment.

    Does Article 361 Grant Absolution to the Governor against Criminal Charges?

    • Scope of Article 361: Article 361 does grant significant immunity to Governors, shielding them from criminal proceedings during their term. However, the immunity is not absolute.
      • The first provision allows for the conduct of the President to be reviewed by designated bodies for impeachment, while the second provision allows for civil suits against the government.
    • Judicial Precedents: Previous court rulings have indicated that while Governors enjoy immunity under Article 361, this does not prevent judicial scrutiny of their actions, especially if those actions infringe upon fundamental rights.
      • For example, in the case of Rameshwar Prasad vs. Union of India, the Supreme Court stated that civil immunity does not preclude challenges based on malafide actions.
    • Potential for Legal Challenge: The current case may set a precedent for how Article 361 is interpreted regarding criminal acts committed by Governors.
      • If the court finds that immunity does not apply to acts that violate fundamental rights, it could pave the way for accountability and legal recourse for victims of misconduct by constitutional authorities.

    Conclusion: The Supreme Court’s interpretation of Article 361 could redefine the immunity of Governors, potentially allowing criminal proceedings for actions violating fundamental rights, thereby ensuring accountability and justice for victims.

    Mains PYQ:

    Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)

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

    A Budget that places health on the margins

    Explained | Indian Society | Mains Paper 2: Health & Education

    Why in the news?

    • With the worst of the COVID-19 pandemic behind us (though the World Health Organization warns the virus still lingers), the Union Budget shifted focus to economic growth levers like infrastructure and employment.
    • It was also hoped that recognizing population health as crucial for economic growth would lead to continued investment in strengthening health systems.
    A budget estimate refers to the initial allocation of funds designated for various programs, departments, or projects within a fiscal year. It represents the government’s expectations regarding how much money will be required to meet planned expenditures.

    In contrast, revised estimates come into play later in the fiscal year. After assessing the actual expenditures and needs after the first six months, the government may adjust the initial budget estimates based on how much of the allocated funds have been utilised and what additional resources may be necessary.

    Comparisons with Previous Years

    • Budgetary Estimates: The comparison of the Budget Estimates (BE) for health between 2023-24 and 2025-25, reveals minimal increases:
      • Overall Health Ministry Budget: 1.98% increase
      • National Health Mission (NHM): 1.16% increase
      • PMJAY: 1.4% increase
    • Overall Health Ministry budget: The present allocation made in the current Budget is deemed to be inadequate for expanding health coverage services and enhancing the impact of flagship health programs, particularly in light of rising non-communicable diseases and the goal of universal health coverage by 2030.
    • Misleading Comparisons: When we compare the Budget estimates with the previous Revised estimates (RE) the budgetary increase of nearly 12% is misleading, as the RE reflects actual spending rather than the program’s needs.

    Missed Opportunities

    • Health Workforce Development: While the budget mentioned an increase in new medical colleges, it failed to address the critical need for a multi-layered, multi-skilled health workforce.
    • Drug Pricing Mechanisms: Although customs duties were waived on three anti-cancer drugs. However, the budget missed the chance to implement price controls and pooled procurement strategies that could have lowered drug costs across both public and private healthcare sectors. Establishing such mechanisms could enhance the affordability and accessibility of essential medications.
    • Climate-Resilient Agriculture: While the budget committed to climate-resilient agriculture, which is crucial for food security, it did not sufficiently link these efforts to health outcomes, such as nutrition and public health, which are critical in the context of rising health challenges.

    Challenges to the Inclusivity of PMJAY

    • Limited Coverage of Middle Class: PMJAY primarily targets the bottom 40% of the population based on economic status, leaving the middle class without coverage.
    • Focus on Secondary and Tertiary Care: The program emphasizes secondary and tertiary healthcare, often neglecting primary care services. This approach limits comprehensive health coverage and fails to address preventive healthcare needs, which are crucial for achieving UHC.
    • Awareness and Accessibility Issues: There is a significant disparity in awareness and accessibility of PMJAY across states.
      • For example, awareness is notably higher in Tamil Nadu (80%) compared to Bihar (20%). 

    Way forward: 

    • Targeted Funding for Flagship Programs: Need to allocate a more substantial increase in the budget for the National Health Mission (NHM) and Pradhan Mantri Jan Arogya Yojana (PMJAY) to the eradication of non-communicable diseases, tuberculosis elimination by 2025.
    • Strengthen Primary Healthcare: Govt. should ensure adequate funding for primary healthcare services, which form the foundation for preventive and community health initiatives.

    Mains PYQ:

    Q The public health system has limitations in providing universal health coverage. Do you think that the private sector can help in bridging the gap? What other viable alternatives do you suggest? (2015)

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  • Tuberculosis Elimination Strategy

    ICMR develops CRISPR Cas-based TB Detection Kit

    Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Why in the News?

    The Indian Council of Medical Research (ICMR) Regional Medical Research Centre for North East has developed the “world’s cheapest CRISPR Cas-based TB testing system”.

    Back2Basics: CRISPR-Cas9 Technology

    • CRISPR-Cas9 stands for Clustered Regularly Interspaced Short Palindromic Repeats and CRISPR-associated protein 9.
    • It is a technology that allows geneticists and researchers to edit parts of the genome by altering sections of the DNA sequence.
    • Emmanuelle Charpentier and Jennifer Doudna’s work on CRISPR-Cas9 as a ‘molecular scissor’ earned them the 2020 Nobel Prize in chemistry.
    • The system consists of two key components:
    1. Cas9: This is the enzyme that acts like a pair of molecular scissors. It is responsible for cutting the DNA strand at a specific location, allowing for the removal, addition, or alteration of DNA at that site.
    2. Guide RNA (gRNA): This is a piece of RNA that is designed to find and bind to a specific sequence of DNA that matches its code. The gRNA guides the Cas9 enzyme to the exact spot in the genome where an edit is desired.
    • Mechanism:
      • The process begins with the design of a gRNA that matches the DNA sequence where an edit is needed.
      • Once inside the cell, the Cas9 enzyme and the gRNA form a complex that can identify and bind to the target DNA sequence.
      • The Cas9 then cuts the DNA at this location.
      • After the DNA is cut, the cell’s natural repair mechanisms can be harnessed to add or remove genetic material, or to make specific changes to the DNA.
    • Applications: Used for gene editing to correct genetic disorders, develop targeted cancer therapies, enhance diagnostics for infectious diseases, and create personalized medicine approaches.

    About the New TB Detection System

    • The system can detect TB bacteria using DNA from a patient’s saliva at a very low cost.
      • Specific DNA sequences unique to Mycobacterium tuberculosis (the bacteria causing TB) are identified.
    • It can identify the bacteria in preliminary stages and test over 1,500 samples simultaneously within approximately two hours.
    • The technology is simple enough to be used in primary health centres in villages.

    TB Situation in India:

    • TB kills an estimated 480,000 Indians annually, or over 1,400 patients every day.
    • India has more than a million ‘missing’ TB cases each year, which remain undiagnosed or inadequately diagnosed and treated in the private sector.

    National Goals for Elimination of TB: 

    • Pradhan Mantri TB Mukt Bharat Abhiyan (2022): It is stipulated to meet the goal of ending the TB epidemic by 2025 from the country, five years ahead of the Sustainable Development Goals (SDG) for 2030.
    • Nikshay Poshan Yojana (2018): Launched in 2018, this scheme provides nutritional support to TB patients. Under this scheme, TB patients receive a direct benefit transfer (DBT) of Rs. 500 per month to purchase food.

    PYQ:

    [2019] What is Cas9 Protein that is often mentioned in news?

    (a) A molecular scissors used in targeted gene editing

    (b) A biosensor used in the accurate detection of pathogens in patients

    (c) A gene that makes plants pest-resistant

    (d) A herbicidal substance synthesized in genetically modified crops

    [2014] Can overuse and free availability of antibiotics without Doctor’s prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved.

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  • Wildlife Conservation Efforts

    In news: Gandhi Sagar Sanctuary

    National Parks/WS | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    • The Gandhi Sagar sanctuary in Madhya Pradesh is the preferred location for the next batch of cheetah’s relocation plan.
      • However, Banni in the Rann of Kutch, Gujarat is also being prepared to house some of them.

    Cheetah Reintroduction in India:

    • In India, cheetahs disappeared in the early 1950s due to hunting and the loss of their habitat.
    • The ‘Action Plan for Reintroduction of Cheetah in India /Project Cheetah (2022)’ aims to bring cheetahs from African countries to various national parks.
    • It is spearheaded by the National Tiger Conservation Authority (NTCA).
    • Recently, cheetahs from Namibia were reintroduced in Kuno National Park, Madhya Pradesh.
    • Cheetah are listed as VULNERABLE by the IUCN; Schedule II of the Wild Life (Protection) Act, 1972.
    • Kuno NP and Gandhi Sagar has an ideal habitat parallel to Maasai Mara (a National Park) in Kenya, suitable for cheetahs.

    About Gandhi Sagar Wildlife Sanctuary

    • It is located in western Madhya Pradesh and covers an area of 368.62 sq km.
    • It is a flat rocky plateau characterized by shallow topsoil and exposed sheetrock.
    • It is divided by the Chambal River, with the Gandhi Sagar dam and reservoir within its boundaries.
    • Flora and Fauna:
      • Flora: The sanctuary features a savannah ecosystem with open grasslands interspersed with dry deciduous trees. Riverine valleys within the sanctuary support evergreen vegetation.
      • Fauna: The sanctuary is home to a diverse range of wildlife, including species like leopards, sloth bears, striped hyenas, grey wolves, golden jackals, jungle cats, Indian foxes, and marsh crocodiles.

    About Banni Grasslands:

    • The Banni Grassland is located in the Kutch district of Gujarat, covering around 3,847 square km.
    • The climate is arid and semi-arid, with extremely hot summers (temperatures above 45°C) and mild winters (12°C to 25°C), receiving 300-400 mm of annual rainfall mainly during the monsoon.
      • Flora: Grasses such as Dichanthium, Sporobolus, and Cenchrus species, with salt-tolerant plants, shrubs, and trees like Acacia and the invasive Prosopis juliflora.
      • Fauna: Indian wolf, hyena, chinkara, Great Indian Bustard, flamingos, and various raptors, reptiles, and invertebrates.
    • It is inhabited by pastoral communities like the Maldharis, who rely on livestock grazing (cattle, buffalo, and sheep) for their livelihood.
    • Agriculture is limited due to arid conditions, with some areas used for salt production.

    PYQ:

    [2024]  Consider the following statements:

    1. Lions do not have a particular breeding season.

    2. Unlike most other big cats, cheetahs do not roar.

    3. Unlike male lions, male leopards do not proclaim their territory by scent marking.

    Which of the statements given above are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    [2012]  Consider the following: (2012)

    1. Black-necked crane
    2. Cheetah
    3. Flying squirrel
    4. Snow leopard

    Which of the above are naturally found in India?

    (a) 1, 2 and 3 only
    (b) 1, 3 and 4 only
    (c) 2 and 4 only
    (d) 1, 2, 3 and 4

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  • Global Geological And Climatic Events

    Typhoon Gaemi 

    Prelims Only | Enviro & Biodiversity | Mains Paper 1: Geographical Features & Their Location

    Why in the News?

    After making landfall in the Philippines, Typhoon Gaemi is heading towards Taiwan.

    What is a Typhoon?

    • A typhoon is a mature tropical cyclone that forms in the Northwest Pacific Ocean, primarily between 100°E and 180°E.
    • It is characterised by strong winds, and heavy rain, and can cause significant damage due to high wind speeds, storm surges, and flooding.

    Factors causing its formation:

    • It needs sustained ocean temperatures of 26.5°C or higher.
    • High moisture content in the mid-troposphere.
    • Presence of the Coriolis force to initiate rotation.
    • Minimal vertical wind shear to allow for storm growth.
    • Atmospheric instability to promote rising motion and thunderstorm activity.
    • An initial low-pressure area or tropical wave to trigger development.
      • Formation Regions: Northwest Pacific Ocean in areas east of the Philippines, southeast of Japan, and near Taiwan; South China Sea and in Western North Pacific near the Mariana Islands and Guam.
    Note: Typhoons do not form in the South Atlantic Ocean and the southeastern Pacific Ocean because of cooler sea surface temperatures and higher wind shear in those regions.

     

    PYQ:

    [2015] In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason?

    (a) Sea surface temperatures are low
    (b) Inter-Tropical Convergence Zone seldom occurs
    (c) Coriolis force is too weak
    (d) Absence of land in those regions

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  • Housing for all – PMAY, etc.

    Right to Shelter is a Fundamental Right: Supreme Court     

    Prelims Only | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Why in the News?

    The Supreme Court emphasised the need to balance railway infrastructure development in Haldwani, Uttarakhand, with the fundamental right to shelter nearly 50,000 people accused of illegally encroaching on railway land.

    What was the Case?

    • The hearing was based on an application filed by the Railways seeking to modify a January 2023 Supreme Court order.
    • The order had stayed a Uttarakhand HC direction to evict the families within a week, even using paramilitary forces.
    • The application pointed out that the Ghaula River flood has disrupted railway operations in the region and that more land was urgently needed to lay new tracks.

    What is the Right to Shelter?

    • The right to shelter is derived from the Right to Life under Article 21 of the Constitution of India, which guarantees the protection of life and personal liberty.
    • Article 19(1)(e) provides the Right to reside and settle in any part of the territory of India.

    Judicial pronouncements related to it:

    • Olga Tellis v. Bombay Municipal Corporation (1985): The Supreme Court recognized the right to livelihood as a part of the right to life under Article 21.
    • Chameli Singh v. State of Uttar Pradesh (1996): The Supreme Court declared that the right to shelter is a fundamental right under Article 21. It includes adequate living space, safe and decent structures, clean surroundings, light, air, water, electricity, and sanitation.
    • Ahmedabad Municipal Corporation v. Nawab Khan Gulab Khan (1997): The Supreme Court directed the state to construct affordable houses for the poor, reiterating the state’s duty to provide shelter and make the right to life meaningful.

    Various Legislations supporting the Right to Shelter:

    • The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
    • The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
    • The Slum Areas (Improvement and Clearance) Act, 1956

     

    PYQ:

    [2021] Consider the following statements :​

    1. ‘Right to the City’ is an agreed human right and the UN-Habitat monitors the commitments made by each country in this regard.​
    2. ‘Right to the City’ gives every occupant of the city the right to reclaim public spaces and public participation in the city.​
    3. ‘Right to the City’ means that the State cannot deny any public service or facility to the unauthorized colonies in the city.​

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 3 only

    (c) 1 and 2

    (d) 2 and 3

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  • Government Budgets

    For the social sector, it is old wine in an old bottle 

    Explained | Indian Society | Mains Paper 1: Poverty & Development Issues

    Why in the News?

    Budget 2024 maintains the same approach as previous years regarding social sector allocations.

    Decreasing allocations in the Budget for social sector schemes

    • Education Sector: The allocations for school education increased by ₹5,000 crore and for higher education by ₹3,000 crore. The increased recoveries from fees and self-financing schemes suggest a shift towards cost recovery in educational institutions.
    • Health Sector: The allocation for the Department of Health and Family Welfare rose by only ₹1,500 crore.
      • Food Subsidy: There is a limited increase in food subsidies despite rising economic costs and the need to update coverage based on the latest population figures.
    • Shift in Approach: The government giving greater emphasis on cost-effectiveness and privatization in education and health, shifting focus towards contributory schemes like the Atal Pension Yojana.

    Social Sector Schemes in Budget 2024-25

    • Social Protection Schemes:
        • POSHAN Scheme: There is a slight increase from ₹11,600 crore to ₹12,467 crore, but still less than the actual expenditure in 2022-23.
        • Saksham Anganwadi Scheme: The allocation increased to ₹21,200 crore from ₹20,554 crore, but no increase in salaries for Anganwadi workers or honorarium for mid-day meal cooks.
    • Maternity and Social Assistance:
        • Samarthya Scheme: The budget reduced to ₹2,517 crore from ₹2,582 crore. The PMMVY scheme’s maternity benefits have remained unchanged since 2017.
        • NSAP: Allocation for social security pensions remains unchanged at ₹9,652 crore, reducing real coverage and value.

    Schemes for the Unemployed

        • The ‘Prime Minister’s Package for Employment and Skilling’ includes government-sponsored internships, formalization of jobs through incentives for EPFO enrolments, and skill-development programmes
        • An allocation of ₹2 lakh crore over five years for the employment package, linked to industry response

    Schemes for Street Vendors

      • The PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi) aims to benefit over 50 Lakh street vendors across India
      • All lending institutions, including NBFCs, are participating in the scheme to provide affordable loans to street vendors

    Employment Challenges

    • Stagnant Wages and Dampened Demand: The Indian economy faces significant challenges with stagnant wages, which affect consumer demand. This stagnation can hinder overall economic growth and employment generation.
    • Reliance on the Private Sector for Job Creation: The government is increasingly looking to the private sector to address employment challenges.
      • Initiatives like the ‘Prime Minister’s Package for Employment and Skilling’ aim to incentivize private sector job creation through government-sponsored internships and skill development programs.
    • Limited Budgetary Allocations: The budgetary allocations for employment-related schemes are limited, with the entire employment package amounting to ₹2 lakh crore over five years.
    • Focus on Supply-Side Solutions: The current approach emphasizes supply-side measures to incentivize the private sector rather than addressing the underlying demand-side issues, such as low consumer spending and economic uncertainty.

    Way forward: 

    • Enhance Social Sector Investments: The government should significantly increase budget allocations for critical social sector schemes, particularly in education, health, and social protection.
    • Comprehensive Employment Strategy: Need to develop a holistic approach to employment that addresses both supply and demand-side issues.

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

    Key takeaways from the 2023-24 Economic Survey   

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    The 2023-24 Economic Survey highlights realistic challenges for India’s growth, projecting GDP growth at 6.5%-7% for FY 2024-25 despite 8% growth in FY 2023-24.

    What are the major five issues with the Indian Economy?  

    • Weak Demand: In India, an unfavourable environment for FDI growth is due to high interest rates in developed countries, which increases the cost and opportunity cost of investment in India.
    • Dependence on China: Due to over-reliance on China for imports, particularly in key sectors like renewable energy, limits India’s manufacturing capabilities and increases vulnerability to geopolitical tensions.
    • Tepid Private Investment: Despite tax cuts aimed at stimulating capital formation, the corporate sector has not significantly increased investment, leading to a lack of job creation and economic dynamism.
    • Employment Challenges: The need to generate approximately 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, coupled with insufficient data on job creation, complicates labour market analysis.
    • Infrastructure Deficiencies: Inadequate infrastructure, such as roads, railways, and sanitation, continues to hinder economic development and efficiency, requiring substantial investment and reform to improve productivity.

    What are the suggestions given in the Economic Survey? 

    • Private Sector’s Role in Job Creation: The corporate sector should take responsibility for creating jobs, as it is in their enlightened self-interest.
    • Embracing Healthy Lifestyle: Indian businesses should learn from India’s traditional lifestyle, food, and recipes to live healthily and in harmony with nature.
    • Focusing on Agriculture: The farm sector can generate higher value addition, boost farmers’ income, create opportunities for food processing and exports, and make the sector attractive to urban youth.
    • Removing Regulatory Bottlenecks: Licensing, inspection, and compliance requirements imposed by various levels of government are an onerous burden on businesses, especially MSMEs.
    • Improving Data Quality: The lack of availability of timely data on the absolute number of jobs created in various sectors precludes an objective analysis of the labour market situation.

    Way forward: 

    • Enhance Infrastructure Development: Need to prioritize investments in essential infrastructure such as roads, railways, and sanitation to boost economic efficiency and productivity.
    • Strengthen Data Collection and Analysis: The government should develop robust mechanisms for timely and accurate data collection on employment and other key economic indicators.

    Mains PYQ: 

    Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)

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  • Ministry of External Affairs : Important Updates

    Nepal, Sri Lanka, Seychelles secure more funds under Budget allocation for MEA   

    Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the News?

    The Union Budget presented by Finance Minister Nirmala Sitharaman prioritized India-funded projects in neighbouring countries, receiving the majority of the Ministry of External Affairs’ allocation.

    What are the India-funded projects in the neighbourhood? 

    • India has provided significant aid to Nepal, including funding for hydroelectric power plants like Pardi, Trishuli and Devighat.
    • In Afghanistan, India has provided over $3 billion in assistance and was involved in over 400 projects across 34 provinces, including major infrastructure projects like the Salma Dam and the Zaranj-Dalaram Highway.
    • In Myanmar, Kaladan Multi-Modal Transit Transport Projects is $484 million project aims to connect the northeastern Indian state of Mizoram to the Sittwe port in Myanmar’s Rakhine state.
    • In the 2024-25 budget, India allocated ₹700 crore to Nepal (up from ₹550 crore), ₹245 crore to Sri Lanka (up from ₹150 crore), and ₹30 crore to Seychelles (up from ₹10 crore).

    Reasons for reduced focus on Bhutan

    • Bhutan, the largest recipient of MEA’s annual allocation, saw a dip in funding by ₹332.02 crore to ₹2,068.56 crore.
    • However, this slight reduction does not indicate a decrease in funding for projects in Bhutan, as India and Bhutan recently cleared 61 projects amounting to ₹4,958 crore.

    Importance of Bhutan for India:

    • Strategic Importance: 
        • Bhutan shares borders with India and China, acting as a buffer state between the two. Its strategic location is crucial for India’s security interests.
        • India has provided assistance to Bhutan in areas like defence, infrastructure, and communication to maintain its sovereignty and territorial integrity.
        • During the 2017 Doklam standoff between India and China, Bhutan allowed Indian troops to enter its territory to resist Chinese incursions.
    • Economic Importance: 
        • India is Bhutan’s largest trading partner, accounting for 98% of its exports and 90% of its imports.
        • Bhutan’s hydropower potential is a significant source of revenue, and India has been instrumental in assisting Bhutan in developing these projects.
        • India provides substantial economic support to Bhutan. In 2015-16, India’s budgetary support to Bhutan stood at ₹61.60 billion, making it the largest recipient of India’s foreign aid.
    • Cultural Ties:  Bhutan and India share strong cultural ties, as both countries are predominantly Buddhist

    Future scope for India’s Neighbourhood Policy (Way forward) 

    • Strengthening Bilateral Ties: Need to negotiate free trade agreements, promote investments, and collaborate on infrastructure projects to boost economic ties.
    • For example, India and Bangladesh have made significant progress in recent years, with the inauguration of the Maitri Setu bridge connecting Tripura to Bangladesh. The two countries are also working on the Akhaura-Agartala rail link to enhance connectivity.
    • Promoting Regional Cooperation: Need to collaborate on regional initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement for seamless movement of goods and people.
    • For instance, India has been actively involved in the BIMSTEC Coastal Shipping Agreement and the BIMSTEC Grid Interconnection project to enhance regional connectivity and energy cooperation.

    Mains PYQ: 

    Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)

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