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  • Sugar Industry – FRP, SAP, Rangarajan Committee, EBP, MIEQ, etc.

    How India’s Sugar Exports to the world are surging?

    Prelims Only | Agriculture | Mains Paper 3: Indian Economy

    sugar

    Central idea:  India’s success story in sugar exports

    • India’s sugar exports have soared from $810.9 million in 2017-18 to $4.6 billion in 2021-22, and could cross $5.5 billion in the fiscal year ending March 31.
    • The increase is significant in quantity terms too, with India’s shipments increasing from a mere 0.46 lakh tonnes in 2016-17 to 110 lakh tonnes in 2021-22.
    • India has gone from being a marginal player in sugar exports five years ago to No. 2 in the world currently, behind only Brazil.

    Favourite destinations

    • The biggest importers of Indian raw sugar were Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt) and Malaysia (4.15 lt).
    • The country also exported 53.71 lt of white/ refined sugar, the leading destinations for which included Afghanistan (7.54 lt), Somalia (5.17 lt), Djibouti (4.90 lt), Sri Lanka (4.27 lt), China (2.58 lt), and Sudan (1.08 lt).
    • The highest decline in exports has been registered by the European Union (which produces sugar from beet, unlike India and Brazil that only crush cane): from 39.74 lt in 2017-18 to 8.02 lt in 2021-22.

    Which grades of sugar does India export?

    • Raw sugar is what mills produce after the first crystallization of juice obtained from crushing of cane.
    • This sugar is rough and brownish in color, with an ICUMSA value of 600-1,200 or higher.
    • ICUMSA is a measure of the purity of sugar based on color.
    • This raw sugar is processed in refineries for removal of impurities and de-colorization.
    • The end product is refined white cane sugar having a standard ICUMSA value of 45.
    • Till 2017-18, India mainly shipped plantation white sugar with 100-150 ICUMSA value, also known as low-quality whites or LQW in international markets.

    Reasons behind India’s surge in sugar exports

    • Indian raw sugar is free of dextran, unlike Brazilian raws.
    • Indian mills can supply raws with a very high polarization of 98.5-99.5%, which is higher than the polarization of raws from Brazil, Thailand, and Australia.
    • Indian raws today fetch a 4% premium over the global benchmark (New York No. 11 futures contract) price, while LQW sells at a $40/tonne discount to the world price (London No. 5 futures) for 45 ICUMSA whites.
    • Indonesia agreed to tweak its norms in December 2019 to enable imports from India, which further boosted India’s efforts to push exports of raws.

     

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    State of Child Custody Cases abroad

    | Trivia | Mains Paper 2: Government Scheme/Policies

    child

    Central idea:

    • Activists are calling on the Ministry of External Affairs (MEA) to take a stronger interest in child custody cases in Western countries.
    • The call comes as the movie Mrs. Chatterjee vs Norway, which focuses on the diplomatic row between India and Norway in 2011.
    • The movie sheds light on cases where parents lose custody of their children over cultural differences in their upbringing.

    Child Custody norms in India

    • India’s child custody laws are governed by-
    1. Guardians and Wards Act of 1890: It recognizes the welfare of the child as the paramount consideration in custody matters.
    2. Hindu Minority and Guardianship Act of 1956: It deals with the custody and guardianship of Hindu children.
    • Indian law generally gives custody of children to the mother in case of young children, but the father can also seek custody.
    • In recent years, there have been calls to reform the law to provide more equal rights to fathers in custody battles.

     The story beyond: Bhattacharya Case

    • The movie depicts real life story of a Bengali couple who had moved to Norway in 2007.
    • Their child reportedly developed ‘autism-like’ symptoms in his early years and was placed in a family kindergarten.
    • The family was reportedly under watch for months by the child welfare service and in May 2011, the authorities took away the couple’s children under the pretext of bad parenting.
    • Finally the Norwegian authorities took the child away to their shelter home for almost 14 months.

    What accounts to ‘bad’ parenting in Norway?

    • Hand feeding: Norwegian authorities raised objection to the family hand-feeding the baby and equated it to force-feeding.
    • Child sleeping with parents: They also had problems with children sleeping on the same bed as their parents- something that is very common in Indian households.
    • Ban on physical discipline: Charges against the parents also included a slap by the parents – just once. Even mild physical discipline, such as a slap, is considered illegal in Norway.
    • Lack of recreation: Authorities accused the couple that the children did not have enough room to play. They were also accused of providing “unsuitable” clothes and toys to their children.

    About Norway’s Child Welfare Services

    • The Child Welfare Services in Norway is commonly known as Barnevernet and is responsible for child protection in the country.
    • The organization is very strict about child protection and applies strict regulations for all citizens living in the country, regardless of their cultural background.
    • The primary responsibility of the Child Welfare Services is to implement measures for children and their families in situations where there are special needs in relation to the home environment.
    • Assistance is provided through counseling, advisory services, and aid measures, including external support contacts, relief measures in the home, and access to daycare.

    The Bhattacharya Case and Diplomatic Row

    The case of the Bhattacharya couple, whose children were taken away by Barnevernet, caused a diplomatic row between Norway and India. The Bhattacharya had appealed to the foreign ministry to intervene in the case where the Child Welfare Services had taken their children away from them.

    • Bias against non-citizens: The couple was accused of mistreating their children, but some claimed that the decision was biased against non-Norwegian citizens.
    • State kidnapping of children: Human rights activists in India, called the incident “state kidnapping”.
    • Labelling parents for being of unsound mind: In almost every case, they claim that one of the parents has a mental problem just to make their case stronger.

    How did Norway response?

    • After a diplomatic row between the two countries, the Norwegian authorities decided to award the custody of the children to their father’s brother, enabling him to bring them back to India.

    Way forward

    • The case highlights the need for transparent and unbiased decision-making processes in child welfare services, especially in cases involving non-native citizens.
    • While child protection is of utmost importance, the authorities must ensure that their actions are fair, just, and not biased against any particular group or culture.
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  • Modern Indian History-Events and Personalities

    The Decolonization Drive: Monuments of National Importance Reflects Bharat’s history

    op-ed snap | | Mains Paper 1: Modern Indian History

    Central Idea

    • The decolonization drive started by the present government in India to change the British mindset of those responsible for writing history books, which led to the neglect of important monuments and archaeological sites. The Economic Advisory Council’s report on Monuments of National Importance, which he sees as a significant step in the right direction for the preservation and designation of monuments that reflect Bharat’s history. There are some anomalies in the list of monuments of national importance and suggests changes in the way India looks at the preservation of monuments.

    What are the recommendations given by the report?

    • Rationalise and evolve criteria for India’s list of monuments: The report underlined the urgent need to rationalise India’s list of monuments of national importance and recommended that the ASI should evolve substantive criteria and a detailed procedure for declaring monuments to be of national importance.
    • Book of detailed information: ASI should publish a book of notifications with detailed information about each MNI’s provenance, hand over protection and upkeep of monuments of local importance to respective states and denotify to the extent possible, all standalone antiquities like cannons and statues.
    • Funds: Allocation of funds for the preservation of MNI should be increased and ASI should retain the proceeds generated from revenue streams like tickets, events, fees and other sources.

    Neglect of Monuments and Archaeological Sites in Post-Independence India

    • Inadequate efforts: After India’s independence, little effort was made to correct the British mindset of those responsible for writing history books, which resulted in the neglect of monuments and archaeological sites.
    • British view of India: History books continued to teach the history of India’s defeats and its enemies’ victories, which perpetuated the British view of India.

    The Decolonization Drive under the present Government

    • National Heroes: The present government led by PM Modi started the decolonisation drive to bring out the sagas of King Suheldev, Rani Durgavati, and Lachit Barphukan, among others.
    • For example: The government highlighted the story of the founder-king of Delhi, Anangpal Tomar, and declared the neglected Anang Tal as a monument of national importance.
    • Names, sites, insignia of national importance: The government also held national and international events at the Sindhu-Saraswati site of Dholavira and unveiled a new Shivaji-era inspired naval insignia.

    Significance of this Report

    • The Economic Advisory Council’s report on Monuments of National Importance is a significant step in the right direction.
    • The report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history.
    • All the recommendations made by the report can be implemented without amending the Ancient Monuments and Archaeological Sites and Remains Act and need only executive orders.

    Anomalies in the List of Monuments of National Importance

    • There are some anomalies in the list of monuments of national importance.
    • There is not a single monument connected with the struggles of Dalits and B R Ambedkar’s life that has been declared a national monument.
    • Some monuments, like Tota-Maina ki Qabar and Dadi Poti ka Gumbad, have no history, and nobody knows whether they should be declared as Monuments of National Importance.
    • Therefore, all agencies working on monuments be unshackled from the British slave mindset and given into the hands of those who know their subject.

    Conclusion

    • There is hope that the Bibek Debroy-Sanjeev Sanyal report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history. There is the need for an Archaeological Foundation to preserve the civilizational and revolutionary monuments of India.

    Mains Question

    Q. Discuss the recommendations given by the Economic Advisory Council’s report on Monuments of National Importance and its significance in preserving and designating monuments that reflect Bharat’s history.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Operation Greens Scheme: TOP Farmers Protests And A Way Ahead

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues

    Central Idea

    • The Operation Greens scheme aimed to develop a value chain for reducing extreme price fluctuations in the three basic vegetables (tomatoes, onions, and potatoes), enhance farmers’ realizations, and improve their share of the consumer rupee. However, the scheme has not been successful in achieving its goals, as seen by the recent protests against low prices by onion and potato farmers.

    What is Operation Greens scheme?

    pib] Operation Greens Scheme - Civilsdaily

    • The Operation Greens scheme is a government initiative launched in the 2018-19 Union budget by the present government.
    • It aims to develop a value chain for reducing extreme price fluctuations in the three basic vegetables, including tomatoes, onions, and potatoes (TOP).
    • The scheme was later expanded to 22 perishable crops in the 2021-22 budget.
    • The government hopes that by developing a sustainable value chain for these perishable commodities, farmers will benefit from better price realization, while consumers will have access to quality products at reasonable prices.

    Aim & Objectives:

    • To enhance value realization of TOP farmers; reduction in post-harvest losses; price stabilization for producer and consumers and increase in food processing capacities and value addition.
    • Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual-use varieties.
    • Reducing post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
    • Increasing food processing capacities and value addition in the TOP value chain with firm linkages with production clusters.
    • Setting up a market intelligence network to collect and collate real-time data on demand and supply and price of TOP crops.

    Components:

    • Short-term intervention by way of providing transportation and storage subsidy @ 50% and
    • long-term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of the eligible project cost subject to a maximum of Rs. 50 crore per project

    Limited Success of Operation Greens Scheme

    • Retail tomato prices: Tomato prices in wholesale markets have dropped significantly, but retail prices have not reduced much, indicating limited success.
    • Low Onion price: Onion and potato farmers are protesting against low prices, highlighting the scheme’s lack of effectiveness.
    • For instance: There are protests by Maharashtra’s onion growers against low prices, including relay hunger fasts, stoppage of auctions at major mandis, and a 200-km march to Mumbai. Similarly, potato farmers in Uttar Pradesh have demanded that the government procure their tuber at Rs 10 per kg, as against the ruling Rs 6-6.5/kg market price at Agra.

    Reasons behind its limited success

    • Problem Not with Lack of Storage or Processing Capacity: UP alone has an abundance of cold stores with ample capacity to store perishable goods like potatoes. Maharashtra’s growers have built enough kandha chawls to store onions for 4-6 months. Despite the creation of storage capacity, price volatility persists in milk and cane payment arrears to farmers.
    • Price Volatility: The prices of TOP crops have been volatile, which has adversely affected both farmers and consumers. The prices of these commodities tend to fluctuate sharply due to seasonality, weather conditions, and other factors, resulting in uncertainty and instability in the market.
    • Implementation Issues: The scheme’s implementation has been marred by delays, bureaucratic hurdles, and lack of coordination among various stakeholders, which has resulted in low participation and limited success.
    • Lack of Market Linkages: Another reason for limited success is the lack of market linkages between producers and consumers. The farmers are unable to access markets directly, which leads to dependence on intermediaries who manipulate prices, resulting in price volatility.

    Need for Price or Income Assurance for Farmers

    • Investment: Investment in farm-gate, agri-logistics, and storage-cum-processing infrastructure needs to be encouraged.
    • Assurance: Price or income assurance for farmers is necessary, especially for horticulture, dairy, and poultry producers who do not enjoy minimum support price benefits.
    • Diversification: The future for Indian agriculture lies in crop diversification, which will spur greater consumption of foods incorporating proteins (pulses, milk, eggs, and meat) and micro-nutrients (fruits and vegetables), instead of only calories and carbohydrates.
    • Deficiency price payments: The deficiency price payments or per-hectare direct income transfers could be the way forward.

    Conclusion

    • It is evident that the limited success of the Operation Greens scheme underscores the urgent need for a more comprehensive approach to address the challenges faced by TOP farmers. A more holistic approach is required that prioritizes farmer empowerment, investment in infrastructure, and promotion of crop diversification. By adopting such an approach, the government can not only mitigate the impact of price volatility on farmers but also achieve its broader goal of building a sustainable and resilient agricultural sector that benefits both producers and consumers alike.

    Mains Question

    Q. What is Operation Greens scheme? Analyse its limited success in achieving its objectives and Suggest measures to improve the scheme’s effectiveness.

     

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  • Hunger and Nutrition Issues – GHI, GNI, etc.

    Undernutrition: Healthy Human Capital Is The Real Wealth

    op-ed snap | Governance | Mains Paper 2: Health & Education

    “Healthy women and children are pillars of a flourishing society”

    Central Idea

    • Undernutrition is a serious public health issue leading to adverse health consequences and affecting the economy, especially in India. Early stimulation and nutrition interventions in infants and young children lead to improved outcomes in adult life. India ranks poorly on the Human Capital Index and has high levels of stunting, anaemia, and malnutrition. Evidence suggests investing in maternal and early-life nutrition leads to high returns on investment.

    Undernutrition leads to adverse health consequences and affects the economy

    • Child deaths: Undernutrition leads to 3.1 million child deaths annually, which accounts for 45 percent of all child deaths.
    • High levels of stunting In India: India has unacceptably high levels of stunting (35.5 percent), despite marginal improvement over the years.
    • Stunting affects per capita income: Two-thirds of India’s current workforce is stunted, which has enormous economic costs in terms of a decrease in per capita income. The average reduction in per capita income for developing countries is at 7 percent, with a high of 13 percent for India due to the high rates of stunting.
    • Wasting in India: The economic losses incurred by India due to wasting are estimated at more than US $48 billion in terms of lifetime lost productivity.
    • Anaemia: Another compounding factor is anaemia among young women, at 57 percent, which has lasting effects on their future pregnancies and childbirth. The situation further worsens when infants are fed inadequate diets, and there is inadequate sanitation and hygiene.

    Investing in the well-being of women and children is an effective strategy

    • Investing in early childhood: Evidence suggests that every additional dollar invested in quality early childhood programs yields a return of between US$6 and US$17.
    • Better income in future: Early stimulation in infants is known to increase their future earnings by 25 percent. Stunting in childhood leads to impaired brain development, lower cognitive skills and education, leading to lower incomes in the future.
    • For instance: According to estimates, children who are stunted earn 20 percent less as adults than children who are not stunted.

    Increased investment in human capital brings economic growth

    • Human capital is the real wealth: The human capital is the wealth of nations and is dependent on the health, nutrition, skills, and knowledge of people.
    • Effective strategy: Evidence suggests investing in the well-being of women and children as an effective strategy for improved outcomes for children.
    • India’s ranking in Human capital Index: India ranks 116 out of 174 countries as per the Human Capital Index, with a score of 0.49 that indicates a child born in India will be 49 percent productive if provided with complete education and good health.
    • Education: Education to children plays a pivotal role in amassing human capital, improving productivity, and economic development. It has been advocated to target the 1000 days’ period from conception to two years of age for improving birth and nutrition outcomes.

    Coupling nutrition-specific interventions with nutrition-sensitive programs

    • Nutrition-sensitive interventions: Nutrition-sensitive interventions like water, sanitation, and hygiene (WASH) focus on the underlying determinants as poor sanitation can lead to stunting.
    • Integrated water and sanitation improvement program: Evidence suggests both short term and long-term reductions in diarrhoea episodes (3-50 percent) through an integrated water and sanitation improvement program in rural India. WASH can bring significant gains in tackling childhood undernutrition and are important determinants of stunting.
    • Nutrition of pregnant women and young children: Studies suggest long term benefits on adult human capital and health by improving the nutrition of pregnant women and young children.
    • For instance: The first 1000 days of life is the time for rapid growth and development, and lack of good nutrition can lead to lifelong adverse consequences. This period is a critical window of opportunity as stunting sets in during this period and aggravates by the age of two years.

    Disparities in Undernutrition Prevalence

    • Data (NFHS 5) reveals that India has more stunted children in rural areas as compared to urban areas, possibly due to socio-economic variance.
    • Stunting prevalence varies depending on mother’s education and household income,
    • There is wide variation among regions, with high rates of stunting in states of Meghalaya (46.5 percent) and Bihar (42.9 percent) while states like Sikkim and Puducherry have lowest at 22.3 percent and 20 percent respectively.
    • Notable inter-state and inter-district variation in terms of stunting prevalence.

    Way ahead

    • Investing in healthcare facilities is crucial for enhancing productivity, economic growth, and security in India.
    • Addressing undernutrition is necessary for producing and maintaining a healthy, highly skilled workforce in India.
    • Cost-effective investments in child health, nutrition, and education are necessary for improving public health and achieving economic growth in India.

    Conclusion

    • Healthy human capital is the true wealth of any nation. In India, undernutrition is a significant public health concern that not only affects the well-being of women and children but also has adverse economic implications. Therefore, addressing undernutrition is critical for creating a healthy, skilled workforce, ensuring economic growth and security in India.

    Mains Question

    Q. What is India’s ranking on the Human Capital Index, and how does investing in the well-being of women and children contribute to economic growth?

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  • Russian Invasion of Ukraine: Global Implications

    International Criminal Court issues arrest warrant against Vladimir Putin

    IOCR | International Relations | Mains Paper 2: Important International Institutions

    putin

    The International Criminal Court (ICC) has issued an arrest warrant for war crimes for Russian President Vladimir Putin and Maria Lvova-Belova, Russia’s commissioner for children’s rights.

    Charges against Putin

    • The ICC issued the warrants because it believes that Putin bear individual criminal responsibility for the war crime of –
    1. Unlawful deportation of population and
    2. Unlawful transfer of population from occupied areas of Ukraine to the Russian Federation

    The ICC and its Background

    • The ICC is a standing body created two decades ago to investigate war crimes, genocide and crimes against humanity under a 1998 treaty known as the Rome Statute.
    • The court is based in The Hague, a Dutch city that has long been a center for international law and justice.
    • Many democracies joined the ICC, including close American allies such as Britain.
    • However, the United States has kept its distance due to fears that the court may one day seek to prosecute American officials.
    • Russia is also not a member.

    Implications of the Warrants   

    • Human rights groups hailed the warrant as an important step toward ending impunity for Russian war crimes in Ukraine.
    • The likelihood of a trial while Putin remains in power appears slim since the court cannot try defendants in absentia, and Russia has said it will not surrender its own officials.
    • Putin’s isolation in the West deepens, and his movements overseas could be limited.
    • If he travels to a state that is a party to the ICC, that country must arrest him according to its obligations under international law.

    Possibility of Putin Facing Trial

    • The ICC has no power to arrest sitting heads of state or bring them to trial, and instead must rely on other leaders and governments to act as its sheriffs around the world.
    • A suspect who manages to evade capture may never have a hearing to confirm the charges.
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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    PM MITRA Scheme: 7 States to get textile parks

    Schemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    pm mitra

    The Centre has selected seven states in India to set up new textile parks under the PM MITRA (Mega Investment Textiles Parks) Scheme.

    What is PM MITRA Scheme?

    • The scheme was announced in October 2021, and the parks will be established by 2026-27.
    • MITRA aims to enable the textile industry to become globally competitive, attract large investments, and boost employment generation and exports.
    • It will create world-class infrastructure with plug and play facilities to enable create global champions in exports.
    • It will be launched in addition to the Production Linked Incentive Scheme (PLI).
    • It will give our domestic manufacturers a level-playing field in the international textiles market & pave the way for India to become a global champion of textiles exports across all segments”.

    Its implementation

    • An special purpose vehicle (SPV) owned by Centre and State Government will be set up for each park, which will oversee the implementation of the project.
    • The Ministry of Textiles will provide financial support in the form of Development Capital Support up to ₹500 crore per park to the Park SPV.
    • A Competitive Incentive Support (CIS) up to ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivize speedy implementation.
    • Convergence with other Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.

    Envisaged Benefits

    • The parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision.
    • The Centre envisages an investment of nearly ₹70,000 crore into these parks, with employment generation for about 20 lakh people.
    • The parks will function as centres of opportunity to create an integrated textiles value chain, right from spinning, weaving, processing, dyeing and printing to garment manufacturing, all at a single location.

    Need for such scheme  

    • Textile industry is critical to India’s economy, employing 4.5 crore people and contributing 7% of GDP. Despite its potential, the industry is facing challenges that need to be addressed.
    • The unorganized textile industry in the country increased wastage and logistical costs, impacting the competitiveness of the country’s textile sector.

    Challenges Faced by India’s Textile Industry

    • High input costs due to high taxes and tariffs, inadequate infrastructure, and a lack of skilled labor.
    • Competition from cheaper imports (ex. from Bangladesh) and a growing informal sector.
    • Environmental concerns related to the industry’s high water usage, pollution, and hazardous waste disposal.
    • The pandemic further disrupted supply chains and led to reduced demand.

    Conclusion

    • PM MITRA Parks represent a unique model where the Centre and State Governments will work together to increase investment, promote innovation, create job opportunities and ultimately make India a global hub for textile manufacturing and exports.
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  • ISRO Missions and Discoveries

    Starberry-Sense: A low cost Star Sensor

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

    star

    Researchers at the Indian Institute of Astrophysics (IIA) have developed a low-cost star sensor for astronomy and small CubeSat class satellite missions.

    What is Starberry-Sense?

    • Based on commercial/off-the-shelf components, this star sensor costs less than 10% of those available in the market.
    • It is made from a single-board Linux computer called Raspberry Pi, which is widely used among electronics hobby enthusiasts.

    Benefits of Starberry-Sense

    • Starberry-Sense can help small CubeSat class satellite missions find their orientation in space.
    • The instrument can be used for CubeSats and other small satellite missions in the future.
    • The position of stars in the sky is fixed relative to each other and can be used as a stable reference frame to calculate the orientation of a satellite in orbit.

    Successful test

    • The star sensor has successfully undergone the vibration and thermal vacuum test that qualifies it for a space launch and operations.
    • These tests were conducted in-house at the environmental test facility located at the CREST Campus of IIA in Hosakote.

     

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

    National Champions Model for Infrastructure Development: Pros and Cons

    op-ed snap | Economics | Mains Paper 3: Investment Models

    National

    Central Idea

    • Emerging economies struggle to provide functional and efficient infrastructure. Infrastructure has become a national aspiration good, a mechanism for job creation, and a necessity. The two biggest constraints on infrastructure provision are cost and public good component. This national champion’s model aims to incentivize private sector participation in infrastructure investments, but it also has its own set of challenges and limitations.

    Traditional Financing Approaches and their Limitations

    • The traditional approach to financing infrastructure has relied on tax revenues or government borrowing.
    • However, this creates a vicious trap as poorer economies generate less tax revenue, which limits infrastructure investment, leading to a further spinoff that affects the growth of the economy and keeps the country poor.
    • Increasing public borrowing domestically tends to crowd out private investment, exacerbating the problem.

    National

    The Public-Private Partnership Model and its Problems

    • The Indian government tried to incentivize private sector participation in infrastructure investment by introducing the Public-Private-Partnership (PPP) model in the early 2000s.
    • While the PPP model led to the construction of a lot of infrastructure, it ended in an avalanche of non-performing assets with public sector banks, private sector bankruptcies, accusations of widespread corruption, and a change in government in 2014.

    National

    The National Champions Model and its Innovations

    • The present government has modified the PPP approach by assigning the bulk of infrastructure provisioning for roads, ports, airports, energy, and communications to a few chosen industrial houses.
    • This is the national champions model where the government picks a few large conglomerates to implement its development priorities.
    • This model incentivizes national champions to build projects by providing subsidies to cover the costs.
    • New aspects of the National Champions Model:
    1. National champions need control over existing projects with strong cash flows to incentivize investment in projects with low returns and negative cash flows.
    2. Public association of champions with the government’s national development policy generates a competitive advantage for the champions in getting domestic and foreign contracts.
    3. Access to some cash-rich projects allows national champions to borrow from external credit markets by using these entities as collateral, which lowers the cost of finance of other.

    Benefits of National Champions Model

    • Economic growth: National champions can contribute to economic growth by generating revenue, creating jobs, and investing in research and development.
    • Strategic importance: The model can help ensure that the country has a strong presence in strategically important industries, such as defense or energy, which can be critical to national security.
    • Export competitiveness: National champions can become leaders in their respective markets and compete effectively in global markets, which can increase exports and improve the country’s trade balance.
    • Innovation: National champions can invest heavily in research and development, leading to technological advancements that can benefit the broader economy.
    • Access to capital: National champions may be able to access capital more easily than smaller companies, allowing them to make larger investments and pursue growth opportunities.

    The Problems with the National Champions Model

    • Too big to fail: Market and regulatory treatment of conglomerates as too big to fail. This means that these companies are so large and important to the economy that their failure could cause widespread harm to the financial system and the economy as a whole. This opens the door to market hysteria, delayed discovery of problems, and spillovers of sectoral problems into systemic shocks. The recent troubles of the Adani companies in India highlight the potential risks associated with this approach.
    • Encouraging market concentration that can be bad for efficiency and productivity: Concentrated markets reduce competition and can lead to higher prices, lower quality, and reduced innovation. When firms have market power, they have less incentive to improve their products or services, reduce costs, or innovate. This can result in lower overall productivity in the economy.
    • The risk of turning the country into an industrial oligarchy: An industrial oligarchy is where a small group of powerful and influential conglomerates control a large portion of the economy. This can have negative consequences for economic growth, social mobility, and political stability. An oligarchy may be resistant to change and less responsive to the needs and aspirations of the broader population.
    • Uneven playing field: The optics of an uneven playing field in terms of market access and selective regulatory forbearance that can become a significant deterrent for foreign investors.

    National

    Conclusion

    • While infrastructure is a necessary condition for growth, it is not a sufficient one. Effective demand is the problem, as seen in the power sector, where the inability of the power distribution companies to recover payments was the issue. India is at an inflection point in its development path, and the national champions model has its pros and cons that needs to be analyzed before its consideration.

    Mains Question

    Q. What is National Champions Model for Infrastructure development in India? Discuss its advantages and disadvantages.

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    Child Marriage And The Role of Education: Analysis

    op-ed snap | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

    Marriage

    Central Idea

    • When the Assam government launched a massive crackdown on child marriage, social activists pointed out that the root of the problem, i.e., limited access to education among women, is not being sufficiently addressed. National Family Health Survey (NFHS) data show that higher education levels could play a greater role than wealth in delaying a woman’s marriage. The data also reflect wide variations between the marital age of rural and urban women, and Dalit and upper-caste women.

    Does education or wealth play a greater role in determining when a woman gets married?

    • Education is significant: Education has a longer history of being significant in delaying a woman’s marriage.
    • For instance: Depending on National Family Health Survey (NFHS) data, education has had a steady influence, while poverty has had an increasing influence over time.
    • Poverty: Poverty is the greatest determinant of early marriage as the poor do not want to wait due to the increasing demand for dowry. Wealthier people are no longer marrying their daughters early.

    What role does marriage play in India?

    Marriage plays a significant role in India as it serves multiple purposes.

    • Most significant institution: It is considered the most significant institution for daughters as it fulfills the family’s responsibility towards them. For sons, the responsibility is to settle them in a job, which will hopefully lead to marriage.
    • Social identity: Marriage is crucial for social identity, and a woman who remains single is an anomaly because almost everyone gets married.
    • Sexual respectability: marriage is essential for sexual respectability as those who wish to have social respect have sexual relationships within marriage.
    • Legitimate children: Marriage provides the option to have children, and having a child without a husband is completely unacceptable in the Indian context.

    Marriage

    What advantages that families see in getting women married earlier instead of educating them further?

    • Dowry: This dowry can be a significant financial burden for families, and getting their daughters married early may be seen as a way to reduce this expense. The more educated a girl, the more the boy has to be educated too and the higher the dowry.
    • Transfer of responsibility: Families feel there is the responsibility of protecting her sexually before marriage. And that responsibility gets transferred to the boy’s family. After marriage, the girl goes to live with her husband’s family, so why spend on her education?
    • Maintenance of caste and community lines: In some cultures, marrying within one’s own caste and community is essential to maintain social status and cultural traditions. Early marriage may be seen as a way to ensure that women are married within their caste and community and preserve cultural practices.

    Marriage

    Women are increasingly getting access to education. Does this result in more empowerment? 

    1. Advantages of Women’s Access to Education:
    • Education provides women with knowledge and skills that lead to greater empowerment and the ability to make informed decisions about their lives.
    • Educated women are more likely to participate in the workforce, earn higher wages, and have better health outcomes.
    • Access to education can challenge traditional gender norms and stereotypes, creating new opportunities for women and girls.
    • Education can increase women’s bargaining power within their families and communities, allowing them to negotiate for better living conditions, higher earnings, and greater autonomy.
    1. Challenges in Women’s Employment
    • The female labor force participation rate is low at 25%, and job losses have been especially harmful to women.
    • Despite increased access to education, there is a high proportion of educated but unemployed women.
    • Women who enter the corporate sector often face hostility or are unable to balance domestic expectations with work demands.
    • The conjugal contract between men and women remains largely unchanged, with women assuming the majority of domestic burdens and men often having power over family decisions.
    1. Impact of Age of Marriage
    • Increasing the age of marriage may not automatically lead to greater empowerment, autonomy, or freedom for women.
    • While delaying marriage may provide women with more opportunities to pursue education and careers, there is still a significant gender gap in employment and earnings.
    • Low and declining employment rates may also result in a greater burden on marriage as a means of economic security.

    Why women in SC/ST/OBC communities get married at  younger age than even those in rural India?

    • Socio-economic factors: Women in SC/ST/OBC communities tend to get married at younger ages than even those in rural areas due to a combination of social and economic factors.
    • Sense of social disadvantage: Families who belong to these groups experience a sense of social disadvantage in the marriage market, but they are also often poor, with lower wealth quintiles being disproportionately populated by SC, ST, and OBCs.
    • Caste and poverty: There is a fair deal of correlation between caste and poverty in these communities, with many lacking decent work and being vulnerable to violence from those higher in the hierarchy.
    • Vulnerability: Girls from these communities are even more vulnerable to such issues, with Dalit girls being particularly susceptible to sexual predators as young upper-caste men feel that they have a right of access.
    • Marriage as protection: Marriage can be seen as a form of protection for girls from these communities, but the issue of early marriage is complex and influenced by a range of factors.

    Marriage

    Conclusion

    • The issue of child marriage in India is complex and deeply rooted in societal norms, poverty, and caste systems. Despite the progress in education and women’s empowerment, there are still challenges. The issue of child marriage requires a comprehensive approach that addresses the underlying societal and economic factors that perpetuate the practice.

    Mains Question

    Q. Discuss the role of education and wealth in determining the age at which women get married in India.

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