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Nikaalo Prelims Spotlight || Schemes and announcements in budget
Dear Aspirants,This Spotlight is a part of our Mission Nikaalo Prelims-2023.
You can check the broad timetable of Nikaalo Prelims here
Session Details
YouTube LIVE with Parth sir – 7 PM – Prelims Spotlight Session
Evening 04 PM – Daily Mini Tests
Join our Official telegram channel for Study material and Daily Sessions Here
21st Apr 2023
Schemes and announcements in budget
Agriculture Sector
· Digital public infrastructure for agriculture
· Agriculture Credit
· Atmanirbhar Horticulture Clean Plant Program
· Agriculture Accelerator Fund
· Global Hub for Millets: ‘SHREE ANNA’
· A New sub-scheme of PM Matsya Sampada Yojana
· PM-PRANAM
· Bhartiya Prakritik Kheti Bio-Input Resource Centres
Health
· Sickle Cell Anaemia Elimination Mission
· Pharma Innovation
Education
· National Digital Library for children and adolescents
Tribal Welfare
· Aspirational Block Programme
· Pradhan Mantri PVTG Development Mission
Languages and Inscriptions
· Bharat Shared Repository of Inscriptions (Bharat SHRI)
Urbanization
· Sustainable Cities of Tomorrow
· Urban Infrastructure Development Fund (UIDF)
Artificial Intelligence
· Centre of Excellence for AI: Make AI in India and Make AI work for India
Governance
· National Data Governance Policy
· One Stop Solution for Identity and Address Updating
· Entity Digi Locker
· 5G labs
Environment Conservation
· Battery Energy Storage Projects
· Green Credit Programme
· Gobardhan Scheme
· MISHTI: ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’
· Amrit Dharohar
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![[Sansad TV] Perspective: Mission LiFE & Climate Change](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2022/12/sansad.jpg)
[Sansad TV] Perspective: Mission LiFE & Climate Change
Context
- The Prime Minister has called for people’s participation and collective efforts in combating climate change at a World Bank event.
- A Global call for Mission LiFE (Lifestyle for Environment) was given by PM Modi, at CoP26, held at Glasgow in October-November, 2021.
- Subsequently, Mission LiFE was launched by PM Modi on 20 October 2022.
What is Mission LiFE?
- PM Modi introduced the concept of Lifestyle for Environment (LiFE) at UNFCCC-COP26 in 2021.
- Mission LiFE is an international mass movement aimed at protecting and preserving the environment.
- It envisions a shift from a ‘use-and-dispose’ economy to a circular economy, which promotes mindful and deliberate utilization.
Approach of Mission LiFE
- Emphasize Individual Behaviours: Make Life a Jan Andolan (mass movement) by targeting the attitudes and behaviours of individuals and communities.
- Global Co-creation: Utilize the expertise of the world’s leading universities, think tanks, and international organizations to crowdsource empirical and scalable ideas.
- Harness Local Cultures: Utilize climate-friendly social norms, beliefs, and daily household practices of different cultures worldwide to drive the campaign.
Key Strategy: Pro-Planet People
- LiFE aims to utilize the power of social networks to influence climate-related social norms.
- To achieve this, the Mission plans to establish and foster a global network of individuals called ‘Pro-Planet People’ (P3).
- The Mission aims to encourage people to undertake simple daily actions that can significantly contribute to addressing climate change.
- P3 members will have a shared commitment to adopting and promoting environmentally friendly lifestyles.
- Through the P3 community, the Mission intends to establish an ecosystem that enables and reinforces sustainable environmentally friendly behaviours.
Significance of the LiFE Mission
- Efforts Refinement: It will aid in converging with measures such as the establishment of solar power plants, installation of solar panels on canals, and water conservation in drought-prone areas.
- Disaster Management: It will facilitate efforts to combat environmental disasters and set global trends for sustainable development.
- Global Initiative: It serves as India’s global initiative to combat climate change and promote sustainable living to achieve the UN sustainable development goals by 2030.
- Pro Planet People: It embodies the P3 model’s spirit, promoting a ‘Lifestyle of the planet, for the planet, and by the planet’.
- India-UN Partnership: Both entities have joined forces in this new initiative that is expected to be a global success.
- Nature Harmony: It encompasses every lifestyle adopted by our ancestors related to nature and environment conservation, which has become part of our present-day lifestyle.
- Climate Change Battle: Combating climate change goes beyond policy-making and requires wider support from individuals, families, and communities to protect the earth and humanity against climate-related disasters and extreme weather events.
- Circular Economy: The mission promotes the adoption of the ‘Reduce, Reuse, and Recycle’ concept, which helps strike a balance between development, economic growth, and sustainability.
- Net Zero Target: It aids India and many other countries in achieving their net zero carbon footprint goals.
Indian efforts to mitigate Climate Change
- International Solar Alliance: India, along with France, launched the International Solar Alliance (ISA) in 2015, aimed at promoting the use of solar energy worldwide.
- National Clean Energy Fund: The Government of India established the NCEF to promote research, development, and deployment of clean energy technologies.
- National Adaptation Fund for Climate Change: The NAFCC was set up to support climate adaptation efforts in India, particularly in sectors such as agriculture, water, and forestry.
- National Action Plan on Climate Change: The National Action Plan on Climate Change (NAPCC) outlines India’s strategy to combat climate change, with specific goals for energy efficiency, renewable energy, and sustainable agriculture.
- National Solar Mission: The National Solar Mission aims to achieve 100 GW of solar energy capacity by 2022, making India a global leader in solar energy.
- Ujjwala Yojana: The scheme aims to provide free LPG connections to below-poverty-line households, reducing the use of traditional fuels like wood and charcoal, which contribute to indoor air pollution and carbon emissions.
- Smart Cities Mission: It aims to promote sustainable urban development and reduce greenhouse gas emissions through the use of technology and innovation in cities.
Way Forward
- Collaboration: LiFE should work with civil society, government, private sector, academia, and international organizations for effective strategy implementation.
- Communication: Effective communication is crucial for making LiFE a mass movement. The campaign should leverage social media, community radio, and other tools to spread awareness.
- Behaviour Change: LiFE should promote behaviour change by providing information, incentives, and tools for sustainable lifestyles.
- Innovation: LiFE should support innovations like green technologies, circular economy models, and sustainable agriculture practices.
- Capacity Building: Capacity building is essential for creating a self-sustaining ecosystem of sustainable behaviours. LiFE should focus on building the capacity of individuals, communities, and organizations.
- Monitoring and Evaluation: LiFE should regularly monitor and evaluate the impact of its strategies. It should collect data on the adoption of sustainable practices, carbon emissions reduction, and improvement in the quality of life.
- Global Cooperation: LiFE should encourage global cooperation to address climate change. It should collaborate with other countries, international organizations, and initiatives to work towards global sustainable development goals.
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Oceans absorb 90% of human-induced planet warming: Study
The study published in the journal Earth System Science Data estimates that almost 90% of the warming that has occurred in the last 50 years has been absorbed by the ocean, with the remaining heat absorbed by the land, cryosphere and atmosphere.
Earth’s energy balance: A quick recap
- It is the balance between the amount of energy that Earth receives from the Sun and the amount of energy that Earth radiates back into space.
- It is also known as the radiation budget.
- The energy from the Sun that Earth receives is mainly in the form of visible light and ultraviolet radiation.
- This energy is absorbed by the Earth’s surface and atmosphere, which then radiate it back into space in the form of infrared radiation.
- The balance between incoming and outgoing radiation is crucial for maintaining the Earth’s temperature and climate.
- Any imbalance between the two can lead to global warming and climate change.
Description Total incoming solar radiation Approximately 342 W/m² reaches Earth’s atmosphere Albedo About 30% of incoming solar radiation is reflected back to space Greenhouse effect Remaining 70% of incoming solar radiation is absorbed by Earth’s surface and atmosphere, creating the greenhouse effect Atmospheric heat Atmosphere contains only 0.001% of Earth’s heat energy, but is crucial in regulating heat budget Key highlights of the Study: Heat Accumulation
- The study estimates that approximately 381 zettajoules (ZJ) of heat accumulated on the planet from 1971-2020 due to anthropogenic emissions.
- This roughly equals a heating rate of approximately 0.48 watts per square metre (Earth Energy Imbalance or EEI). EEI is the difference between incoming and outgoing solar radiation.
- According to the study, about 89% of the accumulated heat is stored in the ocean, 6% on land, a percent in the atmosphere, and about 4% available for melting the cryosphere.
Implications
(1) Land Heat Accumulation
- Heat accumulated on land drives up ground surface temperatures, which may increase soil respiration, releasing carbon dioxide in the process.
- Higher soil respiration will likely decrease soil water, depending on climatic and meteorological conditions and factors.
(2) Inland Water Bodies and Permafrost Thawing
- Heat storage within inland water bodies has increased to roughly 0.2 ZJ since 1960. For permafrost thawing, it was about 2 ZJ.
- The accumulation of heat in inland water increases lake water temperatures, making conditions ripe for algal blooms.
- Permafrost heat content could inject methane and carbon dioxide into the atmosphere, the researchers warned.
(3) Ocean and Troposphere heating
- The upper ocean (0-300 and 0-700 meters depth) has taken up a major fraction of heat, according to the new estimates.
- During 2006-2020, ocean warming rates for the 0-2,000 meters depth reached record rates of roughly 1.03 watts per square meter.
- The troposphere is also warming up due to increased heat accumulation.
(4) Cryosphere heating
- The cryosphere – the frozen water part of the Earth system – gained roughly 14 ZJ of heat from 1971-2020.
- Half of the uptake triggered the melting of grounded ice, while the remaining half is linked to the melting of floating ice.
- The Antarctic Ice Sheet contributed about 33% to the total cryosphere heat gain, while Arctic sea ice stood second, having contributed 26%.
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NASA develops Exobiology Extant Life Surveyor (EELS)
NASA is developing a snake-like robot- Exobiology Extant Life Surveyor (EELS), which it says can boost space exploration through its diverse adaptability to various terrains.
Exobiology Extant Life Surveyor (EELS)
Details Purpose Designed to explore internal and enclosed dynamic terrain structures to assess evidence for life. Focus To explore ocean-world-inspired terrain, and besides Enceladus, it can explore Martian polar caps and descending crevasses in Earth’s ice sheets. Enceladus and EELS system Enceladus is a small and icy body, and the Cassini spacecraft dubbed it to be one of the most scientifically interesting destinations in the solar system. Scientific investigations Work is underway to identify high-priority and high-impact scientific investigations to show the capabilities of the snake-like robot. Features of EELS Robot
Details Propulsion and gripping mechanism EELS robot has an actuation and propulsion mechanism, driven by power and communication electronics. It uses a rotating propulsion unit that acts as tracks, while the gripping mechanism and propeller unit help it to access a plume vent exit.
Adaptability The robot’s adaptability to various terrains and its unique features make it capable of exploring areas that were once inaccessible. Enceladus Geyser-like jets spew water vapor and ice particles from an underground ocean beneath Enceladus’s icy crust, making it a promising lead for NASA in its search for life. -
Exercise INIOCHOS-23
The Indian Air Force (IAF) will be participating in a multi-national air exercise called Exercise INIOCHOS-23, which will be hosted by the Greece Air Force.
Ex. INIOCHOS-23
- Exercise INIOCHOS-23 will be conducted at the Andravida Air Base in Greece.
- The IAF will be participating with four Su-30 MKI and two C-17 aircraft.
- The objective of the exercise is to enhance international cooperation, synergy, and interoperability among the participating Air Forces, as stated by the IAF in a statement.
Strategic significance
- The exercise will be conducted in a realistic combat scenario involving multiple types of air and surface assets
- This will provide valuable insight into each other’s best practices and enable the participating contingents to interact professionally.
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20th Apr 23 | Nikaalo Prelims- Mini test 17 (Important keywords in the survey and budget)
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Critical Minerals and India
Central idea
- A recent working paper from Centre for Social and Economic Progress (CSEP) extends the earlier minerals assessment for 23 minerals by assessing the criticality levels of 43 select minerals for India.
- This is based on their economic importance (demand-side factors) and supply risks (supply-side factors) which are determined through the evaluation of specific indicators.
What are Critical Minerals?
- Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
- These minerals are used in making mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
- Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
- Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.
Why are these resources critical?
- Clean energy transition: Critical minerals are essential to the ecosystem that fuels the world’s transition towards clean energy and digital economy.
- Strategic nature: Any supply shock can severely imperil the economy and strategic autonomy of a country that is over-dependent on others to procure critical minerals.
- Rare availability: Supply risks exist due to rare availability, growing demand, and complex processing value chain.
What is the China ‘threat’?
- Dominant role: China is the world’s largest producer of 16 critical minerals, including cobalt and rare earth elements.
- Monopoly in processing: The country has a strong presence across the board in processing operations, with a share of refining around 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for rare earth elements.
- Control over offshore mines: China also controls cobalt mines in the Democratic Republic of Congo, from where 70% of this mineral is sourced.
- Supply chain dominance: The country’s dominance in critical minerals production and processing raises concerns of a supply disruption in case of a geopolitical conflict.
Challenges in ensuring resilient critical minerals supply
- Limited availability of critical minerals: The rare availability of critical minerals poses a challenge in meeting the growing demand for these minerals.
- Geopolitical risks: Complex supply chains can be disrupted by hostile regimes or politically unstable regions, leading to supply chain disruptions.
- Dominance of certain countries: A few countries, such as China, are the dominant producers of critical minerals, leading to concerns over supply disruptions in case of a geopolitical conflict.
- Increasing demand for critical minerals: With the shift towards renewable energy technologies and electric vehicles, the demand for critical minerals such as copper, lithium, and rare earth elements is increasing rapidly.
- Reliance on foreign partners: Countries with limited reserves and higher requirements for critical minerals may have to rely on foreign partners to meet their domestic needs, leading to supply chain vulnerabilities.
- Environmental and social concerns: The extraction and processing of critical minerals can have negative environmental and social impacts, leading to challenges in meeting sustainability goals.
What are countries around the world doing about it?
Several countries are taking measures to ensure a consistent supply of critical minerals to their domestic markets.
- India: It has set up Khanij Bidesh India Ltd. (KABIL), a joint venture of three public sector companies, to ensure a consistent supply of critical and strategic minerals to the Indian domestic market.
- US: It has ordered a review of vulnerabilities in its critical minerals supply chains and shifted its focus on expanding domestic mining, production, processing, and recycling of critical minerals and materials.
- Australia: Its Critical Minerals Facilitation Office (CMFO) and KABIL had recently signed an MoU aimed at ensuring reliable supply of critical minerals to India.
- UK: It has unveiled its new Critical Minerals Intelligence Centre to study the future demand for and supply of these minerals, and its critical mineral strategy will be unveiled later this year.
What should India do to ensure resilient supply?
- Developing domestic sources of critical minerals: This can be achieved by promoting exploration and mining activities, both by public and private sector entities.
- Encouraging responsible mining practices: The Indian government should encourage responsible mining practices that minimize negative environmental and social impacts of mining activities.
- Developing recycling capabilities: This can be achieved by promoting research and development in recycling technologies and incentivizing the adoption of recycling practices.
- Promoting transparency in the supply chain: India should promote transparency in the critical minerals supply chain by ensuring the traceability of minerals from the point of extraction to the point of end-use.
- Investing in research and development: India should invest in research and development to develop new technologies and processes for efficient extraction, processing, and recycling of critical minerals.
- Developing a national critical minerals strategy: India should develop a national critical minerals strategy that identifies priority minerals, promotes domestic exploration and mining, and promotes sustainable and responsible mining practices.
Conclusion
- India has a significant mineral geological potential, many minerals are not readily available domestically.
- Hence, India needs to develop a national strategy to ensure resilient critical minerals supply chains, which focuses on minerals found to be critical in this study.
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The Indian Space Policy 2023 and The Role of Private Sector
Central Idea
- The Indian Space Policy 2023 has been approved by the Indian Cabinet Committee on Security. The policy has opened up the Indian space sector, facilitating an enhanced role for the private sector to augment the development and competitiveness of the Indian space program.
All you need to know about Indian Space Policy 2023
- Clear roles and responsibilities: The Indian Space Policy 2023 policy clarifies the roles and responsibilities of the Indian Space Research Organization (ISRO), NewSpace India Limited (NSIL), and the Indian National Space Promotion and Authorization Center (IN-SPACe), as well as that of the private players in the Indian space sector.
- Opportunities for private sector players: One of the key aspects of the new policy is to open up the Indian space sector to provide opportunities for private sector players to play an active role in augmenting the development and competitiveness of the Indian space program. This will allow ISRO to focus on non-commercial missions, such as research and development of advanced space technologies and space exploration.
- Enhance overall ISRO missions: The policy is expected to enhance overall ISRO missions with greater participation of non-government entities, including academia, the research community, startups, and industry.
- Institutional setups: Strategic activities within the space sector will be handled by NSIL, an institutional set up within the Department of Space that will address these activities in a demand-driven mode. The other recent institutional set up that will be critical in coordination between the public sector and the private players is IN-SPACe.
- Framework for use of ISRO facilities: The policy outlines a framework under which the private sector can use ISRO facilities for a small fee.
- Making Indian space programme competitive: The private players are also expected to create new infrastructure in the space sector. This will be critical in ensuring that the Indian space program becomes more competitive and developed.
- ISRO will focus on research and development: In a significant move, ISRO has stated that it will not do any operational and production work for the space sector and will instead focus its energies on developing new technologies, new systems, and research and development. This essentially means that the routine production and launches that the ISRO was involved in until now will be handled by the private sector completely.
What is mean by Open Space Policy?
- An Open Space Policy refers to a policy that allows for open and transparent participation in space activities.
- It involves the collaboration between public and private entities in the exploration and use of space.
- The goal of an open space policy is to promote innovation, competition, and the growth of the space industry while ensuring the safety and security of space activities.
- This policy allows for the development of new technologies, research and development, and increased cooperation and collaboration between different countries and organizations.
Facts for prelims: Private space sector startups in India
Company Name
Area of Specialization Recent Developments
Skyroot Aerospace, Hyderabad Launch Vehicles for Small Satellites Successfully launched their first indigenously designed and developed launch vehicle, Vikram I. Vikram S (Mission Prarambh) rocket recently launched as first privately built Indian rocket to make it to space Agnikul Cosmos, Chennai Launch Vehicles for Small Satellites Successfully tested their fully 3D printed rocket engine, the Agnilet, in January 2021. Bellatrix Aerospace, Bangalore Electric Propulsion Systems Signed an agreement with Skyroot Aerospace for the use of electric propulsion technology in their launch vehicles. Pixxel, Bangalore Earth Observation Satellites Launched their first satellite, Anand, in February 2021, and plans to launch a constellation of 30 satellites by 2023. Kawa Space, Mumbai Space-Related Technologies Developed a ground station in collaboration with the Indian Institute of Technology, Bombay, to track and receive data from satellites. Skylo, Bangalore Low-Cost Satellite-Connected Devices for IoT Raised $103 million in Series B funding round led by SoftBank Group Corp in August 2021. SatSure, Bangalore Data Analytics Services for Agriculture Industry Launched their new product, SatSure Agri, in May 2021 to provide crop yield forecasting services to farmers. Dhruva Space, Bangalore Satellite-Based Communication Solutions Signed a Memorandum of Understanding with Ananth Technologies in October 2021 to provide satellite-based communication services to the aviation industry. Benefits of having an open space policy
- Messaging tool: An open space policy can be used as a messaging tool, both for friends and potential foes. It can demonstrate India’s commitment to the peaceful use of outer space and build confidence among other nations.
- Moderating fears and concerns: An open space policy can help to moderate fears and concerns about India’s space activities, by providing greater clarity on India’s space objectives and priorities.
- Rebuilding confidence: An open space policy can help to rebuild confidence among other nations that India is committed to the peaceful use of outer space.
- Outlining objectives: An open space policy can provide a clear outline of India’s short-term and long-term space objectives and priorities.
- Better resource allocation: An open space policy can help to ensure better resource allocation for India’s space program, by providing a clear framework for decision-making and prioritization.
Potential drawbacks of open space policy
- Increased competition: An open space policy could lead to increased competition among countries and private entities to gain access to space and its resources. This could lead to a potential arms race in space and increased tensions between countries.
- Security concerns: Open access to space could also create security concerns, as countries may develop space weapons or use space to conduct surveillance on other countries.
- Environmental impact: An open space policy could also have environmental consequences, as increased space activity could lead to more space debris and pollution, potentially harming the Earth’s orbit and its environment.
- Lack of regulation: Without proper regulation, an open space policy could lead to the exploitation of space resources, such as minerals and water, which could negatively impact the environment and lead to unfair distribution of resources.
- Cost: Increased space activity and access could also lead to higher costs for countries and private entities, which may not be sustainable in the long run.
Conclusion
- The new policy is expected to bring about significant changes in the Indian space ecosystem, including greater private sector participation, better resource allocation, and institutional clarity. This is an important step towards an open space policy that integrates both commercial and national security requirements in a balanced fashion.
Mains Question
Q. The Indian Space Policy 2023 has been approved by the Indian Cabinet Committee on Security. Note down some of its key aspects. What do you understand by mean open space policy? Discuss its advantages and potential drawbacks.
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Indian Economic Growth Prospects: A Comprehensive Analysis
Central Idea
- India has had an established track record of high growth, with an average annual GDP growth of 6.6% in the decade leading up to the Covid-19 pandemic. In fiscal 2023, India is seen growing at 7%, making it the fastest-growing large economy. But with an imminent global slowdown and the full manifestation of the lagged impact of interest rate hikes since May 2022, the economy is expected to decelerate and grow at 6% in fiscal 2024.
Indian economic growth prospects
- Growth accounting: Growth accounting provides a useful framework to analyse medium-term prospects by decomposing their drivers into the contribution of capital, labour and efficiency.
- Economic growth next five years: Indian economy expected to grow at 6.8 per cent per year for the next five years with 52 per cent of it from capital, 38 per cent from efficiency and 10 per cent from labour.
- Changing growth model: The growth model is changing to an infrastructure and manufacturing-driven one.
- Capital spending: The Union Budget has raised capital spending by almost a third in high-multiplier infrastructure segments. But such support to capex will moderate in the years to come, given fiscal consolidation pressures.
- Investment ratio: Investment as a percentage of GDP has already touched a decadal high of 34 per cent in fiscal 2023. So far, the onus to lift the investment ratio has been shouldered by the government. The contribution of the private sector to investments is set to improve, primed as it is with healthier balance sheets, cash reserves and low leverage.
- Contribution of productivity to growth: The creation of physical and digital infrastructure in conjunction with efficiency-enhancing reforms will raise the contribution of productivity to growth. The economy is expected to continue seeing efficiency gains from reforms such as GST and Insolvency and Bankruptcy Code (IBC).
What is holding back a swift and broad-based lift in private investments?
- Economic uncertainty, primarily, and geopolitical events to a lesser extent.
- Sustainability challenge looms for the manufacturing sector as manufacturing and infrastructure growth are carbon-intensive.
- Low-quality skilling of the workforce is holding back its contribution to growth.
- Quality and the skilling of the workforce
- Falling labour force participation of women
What is holding back in Labour’s contribution to growth?
- Labour’s contribution to growth is likely to be low not because India does not have sufficient people in the working-age group, this cohort is 67 per cent of the population and is set to expand by 100 million over the next decade. It is the quality and skilling of the workforce that is holding it back.
Why private investment is essential for Indian economic growth?
- Capital formation: Private investment helps in creating capital formation, which is essential for economic growth. It helps in building infrastructure, creating jobs, and generating income, which in turn drives consumer spending and boosts economic growth.
- Innovation: Private investment is often associated with innovation and technological advancements. Companies that invest in research and development (R&D) can develop new products and processes that can boost productivity and create new markets. This, in turn, can lead to increased profits and more investment in R&D, creating a virtuous cycle of innovation and growth.
- Employment: Private investment creates jobs, which is critical for economic growth and development. When companies invest in new projects or expand their operations, they often need to hire additional workers, which reduces unemployment and boosts consumer spending.
- Foreign investment: Private investment is also an important driver of foreign investment. When companies invest in India, they often bring new technology, skills, and expertise that can help boost local industries and drive economic growth.
- Tax revenue: Private investment can also help increase tax revenues, which can be used by the government to fund public goods and services such as education, healthcare, and infrastructure.
Steps taken by the government to encourage private investment
- Investment-Friendly Policies: The Indian government has launched several investment-friendly policies, such as Make in India, Start-up India, and Digital India, to encourage private investment in the country.
- Infrastructure Development: The government is investing heavily in infrastructure development, including roads, railways, airports, and ports, to create a conducive environment for private investment.
- Tax Reforms: The Indian government has implemented several tax reforms, such as the Goods and Services Tax (GST), to simplify the tax structure and make it more investor-friendly.
- FDI Liberalization: The government has liberalized foreign direct investment (FDI) norms in several sectors, including defense, insurance, and retail, to attract more foreign investment.
- Insolvency and Bankruptcy Code (IBC): The government has implemented the Insolvency and Bankruptcy Code (IBC), which has made it easier for businesses to exit, and has increased investor confidence in the Indian economy.
- Production Linked Incentives (PLI): The government has launched the Production Linked Incentives (PLI) scheme to encourage manufacturing in India and make it more competitive globally.
- Easing of Business Regulations: The Indian government has eased several business regulations to improve the ease of doing business in the country and attract more private investment.
- Skill Development: The government has launched several initiatives, such as Skill India and Pradhan Mantri Kaushal Vikas Yojana, to develop the skills of the Indian workforce and make it more attractive to investors.
Facts for prelims: Steps taken by the government to encourage labour force participation of women
Initiatives
Description
Maternity Benefit Programme A scheme to provide financial assistance to pregnant women and lactating mothers for their health and nutrition needs. Pradhan Mantri Ujjwala Yojana A scheme to provide LPG connections to women from Below Poverty Line households. National Urban Livelihood Mission A programme to provide self-employment opportunities and skill development training to urban poor women. National Rural Livelihood Mission A scheme to provide self-employment opportunities and skill development training to rural women. Mahila E-Haat A digital platform to provide a market for women entrepreneurs to sell their products online. Beti Bachao Beti Padhao A campaign to address the declining child sex ratio and to promote education among girls. Sukanya Samriddhi Yojana A savings scheme for the girl child to ensure their education and marriage expenses are taken care of. Way ahead
- Focus on green transition: As the manufacturing and infrastructure growth are carbon-intensive, so it’s important to have a significant and simultaneous focus on green transition. Having a high sustainability quotient can only embellish India’s credentials as a production destination.
- For instance: Research suggests that between fiscals 2023 and 2027, over 15 per cent of India’s capex could be towards green initiatives involving renewable energy, transportation, altering the fuel mix, and green hydrogen. In the fragmented geopolitical milieu, which is shifting towards supply-chain diversification and friend shoring, India can attract foreign investments.
- Enhancing labour force participation of women: The labour force participation of women is falling. This will have to be reversed through employment policies and investing in the health and education of women.
- For instance: According to a World Bank report in 2018, India could add 1.5 percentage points to its GDP growth by improving the participation of women in its workforce.
Conclusion
- India is going to become a $5 trillion economy by fiscal 2029, given the current growth dynamics. However, the impact of climate risk mitigation will be felt across revenue, commodity prices, export markets, and capital spending. To win the growth marathon, India’s focus must be sharp on the drivers of pace.
Mains Question
Q. Highlight India’s growth prospects in the next five years? Discuss the significance of private investment for economic growth and enlist factors that holding back the private investment.