Construction Sector
Affordable Housing Scheme
Infrastructure Development in North Eastern States
Metro Rail and Mono Rails
Mono Rail
Historical Timeline
Infrastructure Sector: Recent Developments
FDI Flows in the Infrastructure Sector
Infrastructure Projects Completed during 12th Five-Year Plan
Expansion of Roads: Recent Trends
Revenue growth of Indian Railways
Power Generation Capacity
Performance of Eight Core Infrastructure Sector
Definitions:
Infrastructure is a key driver of the overall development of Indian economy. Infrastructure sector focuses on major infrastructure sectors such as power, roads and bridges, dams and urban infrastructure.
“Infrastructure is generally understood as the basic building blocks required for an economy to function efficiently”.
The National Statistical Commission headed by Dr. C. Rangarajan, attempted to identify infrastructure based on some characteristics. The Rangarajan Commission indicated six characteristics of infrastructure sectors:
Based on these features (except b, d, and e), the Commission recommended inclusion of following in infrastructure in the first stage:
Dr. Rakesh Mohan Committee in “The India Infrastructure Report” included:
The World Bank treats power, water supply, sewerage, communication, roads & bridges, ports, airports, railways, housing, urban services, oil/ gas production and mining sectors as infrastructure.
The Economic Survey considers power, urban services, telecommunications, posts, roads, ports, civil aviation, and railways under infrastructure sector.
Why do Infrastructure Matter for Growth & Development?
There is, indeed, a plethora of anecdotal and more technical evidence that suggests development of infrastructure can lead to growth and development of an economy.
The argument is particularly true for the developing countries which lack adequate infrastructure facilities. Intuitively, it should make sense to assume that the more developed a country is, the higher its infrastructure facilities and hence the lower the return from additional investment in roads, railways, ports etc. However, the less developed a country is, the more likely the infrastructure is to matter, because the returns from the Infrastructure development will be much more than the cost of the projects.
Example: A massive road-building exercise in a poorly developed state can offer a one-time boost production activity and productivity of workers in the state.
Infrastructure Sectors & Growth
Any modern textbook on industrial economics or industrial organization will point out that for industries that enjoy network externalities (positive spill over effects/benefits to other sectors/industries), the social rate of return has to be higher than the private rate of return in these projects—assuming that the regulation does not allow the network externality to be turned into a private rent. In other words, their impact on GDP and its growth should be high. This explains for instance why the growth impact of the telecoms sector so often come out to be high. But for specific countries or regions, this could also be true for transport or electricity.
In general, however, all infrastructure subsectors can be good examples of sectors in which such network externalities can matter. This section reviews the main lessons available on each subsector on the growth impact of each infrastructure subsector.
Energy Sector
The importance of energy sector especially electricity in promoting growth and development via human development and physical development is well known. The single most reason obstructing the growth of the industrial sector in general and manufacturing in particular in India is deficiency of continuous power supply (electricity/electrification) to run factories.
Various studies have found out that, there exist a positive impact on energy infrastructure on the growth of an economy. Therefore, investing in the energy sector may be the safest bet to achieve a high growth. This should not be a surprise, energy is indeed an input into any of the other infrastructure subsectors—for instance, water for irrigation purpose is often pumped through the electric pumps.
Telecommunication
The impact of telecommunication on the growth is found to be maximum. The availability of fixed line phones and mobile phone penetration have effectively transformed the Indian economy and has given boost to Businesses like BPOs and KPOs (Knowledge Processing Outsourcing).
The recent growing research on the importance of the access to internet to increase competition in the private and public sector and from increasing competition to the higher social return and growth of industries is well documented.
Transport
For developing countries like India, the estimated growth effects of transport investments have been very strong. This has been a common finding in research over the last 20 years or so. This is not surprising since the transport facilities in India are weak. The main impact of improved transportation facilities on the development has to come from quality, from addressing bottlenecks or from capturing new network or suprational effects which have not been internalized in older designs of the transport networks.
In fact, studies have found, that for most of the developing countries, the construction of Roads, Railways, Highways, Airports and Sea Ports have contributed positively towards increasing growth.
For instance, roads are needed in Africa, if Africa wanted to match the growth rate of the rest of the world. Construction of Roads & Highways are essential to reduce differences across regions in India. Ports are needed in India, if India, wants to increase its exports and become a major player in the Global Economy.
Q.1) Consider the following statements regarding the ‘P5+1’ countries:
1. Germany is a member of ‘P5+1’.
2. All the five permanent members of UN Security Council are not members of ‘P5+1’
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both are correct
d) None is correct
Q.2) The Term ‘Intifada’ is related to
a) Spain
b) Israel
c) Russia
d) Monglolia
Q.3) Which of the followig Department/Ministry/Tribunal deals with the matter related to Anti-Dumping?
a) Department of Industry Policy and Promotion(DIPP)
b) Minsitry of Finance
c) Customs, Excise and Service Tax Appellate Tribunal (CESTAT)
d) None of the above
Q.4) Consider the following:
1. Indonesia
2. Thailand
3. Bangladesh
Which of the above have FTA with India under aegis of ASEAN?
a) 3 only
b) 1 and 2 only
c) 2 and 3 only
d) All Of the above
Q.5) Consider the following statements regarding FDI and FPI:
1. FPI tends to involve establishing more of a substantial, long-term interest in the economy of a foreign country.
2. FDI is an equity investment with a shorter time frame for investment return
Which of the above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.6) What is/are the purpose/purposes of ‘Marginal Cost of Funds based Lending Rate (MCLR)’announced by RBI?(CSE: 2016)
1.These guidelines help improve the transparency in the methodology followed by the banks for determining the interest rates on advances
2.these guidelines helps ensure the availability of bank credit the interest rate which are fare to the borrowers as well as the banks
Select the correct answers using the code given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.7) What is/are the unique about the ‘Kharai Camel’ a breed found in India(CSE: 2016)
1.It is capable of swimming up three kilometers in seawater
2.Its survives by grazing on mangroves
3.It lives in the wild and cannot be domesticated
Select the correct answers using the code given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.8) Recently, our scientists have discovered a new and distinct spices of banana plant which attains a height of about 11 meters and has orange – colored form of pulp. In which part of India has been discovered?(CSE: 2016)
a) Andaman Islands
b) Anaimalai Forests
c) Maikala Hills
d) Tropical rainforest of North east
IMPORTANT STUFF:
1. Daily newscards have been enriched with back2basics and note2students – Make notes daily
2. Join Full Year Prelims TS – prelims.civilsdaily.com
3. Solutions will be uploaded at 11.30 p.m. Click here for Solutions
4. For attempting previous Prelims Daily Questions – Click here
Q.1) Consider the following statements regarding the ‘National Company Law Tribunal:’
1. It is a quasi-judicial body .
2.It was established under the Companies Act 2013.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both are correct
d) Neither 1 nor 2
Q.2) ‘Consumer Confidence Survey’ is done by which of the following organisation/ministries?
a) Ministry of Finance
b) Reserve Bank of India
c) Ministry of Corporate Affairs
d) Central Statistics Office (CSO)
Q.3) Which of the following statements regarding the ‘Rashtriya Swasthya Bima Yojana (RSBY)’ is/are correct?
1. It was introduced for Below Poverty Line (BPL) families.
2. It was launched in 2016.
Select the correct option using the codes given below.
a) 2 only
b) Neither 1 nor 2
c) Both are correct
d) 1 only
Q.4) Recently, The technical group on tuberculosis in the ministry of health has given approval to a new Drug(to be used as a cure for Tuberculosis). The name of the drug is
a) Delamanid
b) Bedaquiline
c) Isoniazid
d) None of the above
Q.5) Who of the following had first deciphered the edicts of Emperor Ashoka
a) George Buhler
b) James Prinsep
c) Max Muller
d) William Jones
Q.6) With reference to the ‘Gram Nyayalaya Act’ which of the statements is/are correct?
1.As per the act, Gram Nyayalayas can hear only civil cases not criminal cases
2.The Act allows only social activists as medeators/reconcillators
Select the correct answers using the code given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.7) With reference to the ‘Trans pacific Partnership’ consider the following statements:
1.It is an agreement among all the Pacific Rim countries except China and Russia
2.It is a strategic alliance for the purpose of maritime security only
Which of the statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.8) Consider the following statements:
The India – Africa summit
1.Held in 2015 was the third such summit
2.Was actually initiated by Jawaharlal Nehru in 1951
Which of the statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
IMPORTANT STUFF:
1. Daily newscards have been enriched with back2basics and note2students – Make notes daily
2. Join Full Year Prelims TS – prelims.civilsdaily.com
3. Solutions will be uploaded at 11.30 p.m. Click here for Solutions
4. For attempting previous Prelims Daily Questions – Click here
India’s Position in Global Livestock Economy.
Importance of Livestock sector in the Indian Economy.
Importance of Livestock sector in achieving Inclusive Growth in India
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Schemes/Policies Launched for Livestock Sector by the Government
National Livestock Mission
The National Livestock Mission (NLM) has commenced from 2014-15. The Mission is designed to cover all the activities required to ensure quantitative and qualitative improvement in livestock production systems and capacity building of all stakeholders. The Mission will cover everything germane to improvement of livestock productivity and support projects and initiatives required for that purpose subject. This Mission is formulated with the objective of sustainable development of livestock sector, focusing on improving availability of quality feed and fodder. NLM is implemented in all States including Sikkim.
NLM has 4 submissions as follows:
The Sub-Mission on Fodder and Feed Development will address the problems of scarcity of animal feed resources, in order to give a push to the livestock sector making it a competitive enterprise for India, and also to harness its export potential. The major objective is to reduce the deficit to nil.
Under Sub-Mission on Livestock Development, there are provisions for productivity enhancement, entrepreneurship development and employment generation (bankable projects), strengthening of infrastructure of state farms with respect to modernization, automation and biosecurity, conservation of threatened breeds, minor livestock development, rural slaughter houses, fallen animals and livestock insurance.
Sub-Mission on Pig Development in North-Eastern Region: There has been persistent demand from the North Eastern States seeking support for all round development of piggery in the region. For the first time, under NLM a Sub-Mission on Pig Development in North-Eastern Region is provided wherein Government of India would support the State Piggery Farms, and importation of germplasm so that eventually the masses get the benefit as it is linked to livelihood and contributes in providing protein-rich food in 8 States of the NER.
Sub-Mission on Skill Development, Technology Transfer and Extension: The extension machinery at field level for livestock activities is very weak. As a result, farmers are not able to adopt the technologies developed by research institutions. The emergence of new technologies and practices require linkages between stakeholders and this sub-mission will enable a wider outreach to the farmers.All the States, including NER States may avail the benefits of the multiple components and the flexibility of choosing them under NLM for a sustainable livestock development.
Rashtriya Gokul Mission
Key features of the mission
Idea behind the Mission?
Operation flood/ White Revolution in India:
‘Operation flood’ a program started by National Dairy Development Board (NDDB) in 1970 made India the largest producer of the milk in the world. This program with its whopping success was called as ‘The White Revolution’. The main architect of this successful project was Dr. Verghese Kurien, also called the father of White Revolution.
In 1949 Mr. Kurien joined Kaira District Co-operative Milk Producers’ Union (KDCMPUL), now famous as Amul.
Kurien has since then built this organization into one of the largest and most successful institutions in India. The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien’s “extraordinary and dynamic leadership” upon naming him chairman.
Operation Flood Phases
The Operation Flood was completed in three phases:
Phase I (1970-79):- During this phase 18 of the country’s main milk sheds were connected to the consumers of the four metros viz. Mumbai, Delhi, Chennai and Kolkata. The total cost of this phase was Rs.116crores. The main objectives were, commanding share of milk market and speed up development of dairy animals respectively hinter- lands of rural areas.
Phase II (1981–1985):- The management increased the milk sheds from 18 to 136; 290 urban markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000 village cooperatives with 42.5 lakh milk producers were covered. Domestic milk powder production increased from 22,000 tons in the pre-project year to 140,000 tons by 1989, all of the increase coming from dairies set up under Operation Flood.
Phase III (1985–1996):- The dairy cooperatives were enabled to expand and strengthen the infrastructure required to procure and market increasing volumes of milk. Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended, along with intensified member education. It went with adding 30,000 new dairy cooperatives to the 42,000 existing societies organized during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of women members and Women’s Dairy Cooperative Societies increasing significantly.
Amul: (“priceless” in Sanskrit. The brand name “Amul,” from the Sanskrit “Amoolya,” formed in 1946, is a dairy cooperative in India.
It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India. The White Revolution’s model dairy board was that of Amul. The whole program of NDDB was largely based the working of this dairy board. The three-tier ‘Amul Model’ has been instrumental in bringing about the White Revolution in the country.
Achievements of the White Revolution
Blue Revolution in India
Realizing the immense scope for development of fisheries and aquaculture, the Government of India has restructured the Central Plan Scheme under an umbrella of Blue Revolution.
The restructured Central Sector Scheme on Blue Revolution: Integrated Development and Management of Fisheries (CSS) approved by the Government provides for a focused development and management of the fisheries sector to increase both fish production and fish productivity from aquaculture and fisheries resources of the inland and marine fisheries sector including deep sea fishing.
The scheme has the following components:
i. National Fisheries Development Board (NFDB) and its activities.
ii. Development of Inland Fisheries and Aquaculture.
iii. Development of Marine Fisheries, Infrastructure and Post-Harvest Operations.
iv. Strengthening of Database & Geographical Information System of the Fisheries Sector.
v. Institutional Arrangement for Fisheries Sector.
vi. Monitoring, Control and Surveillance (MCS) and other need-based Interventions.
vii. National Scheme on Welfare of Fishermen.
The Scheme Blue Revolution: Integrated Development and Management of Fisheries is being implemented in consultation with all States & UTs. Besides the activities undertaken under both the marine and inland sectors, no specific role for the coastal states has been defined.
The Blue Revolution is being implemented to achieve economic prosperity of fishermen and fish farmers and to contribute towards food and nutritional security through optimum utilization of water resources for fisheries development in a sustainable manner, keeping in view the bio-security and environmental concerns.
Under the scheme, it has been targeted to enhance the fish production from 107.95 lakh tonnes in 2015-16 to about 150 lakh tonnes by the end of the financial year 2019-20. It is also expected to augment the export earnings with a focus on increased benefit flow to the fishers and fish farmers to attain the target of doubling their income.
The Department has prepared a detailed National Fisheries Action Plan-2020(NFAP) for the next 5 years with an aim of enhancing fish production and productivity and to achieve the concept of Blue Revolution. The approach was initiated considering the various fisheries resources available in the country like ponds & tanks, wetlands, brackish water, cold water, lakes & reservoirs, rivers and canals and the marine sector.
Challenges faced by the fisheries sector
The Way Forward
Poultry Sector in India
Growth of India’s Poultry sector in Recent years
Reason Behind this growth
Challenges the Poultry sector is facing
Way Forward
The Following measures should be taken by the Government to improve the situation.
Definition:
“Supply chain means flow & movement of goods from the producers to the final consumers”.
Supply Chain is a sequence of flows that aim to meet final customer requirements, that take place within and between different stages along a continuum, from production to final consumption.
The Supply Chain not only includes the producer and its suppliers, but also, depending on the logistic flows, transporters, warehouses, retailers, and consumers themselves. In a broader sense, supply chains also includes, new product development, marketing, operations, distribution, finance and customer service.
A Graphical Presentation of Supply Chain
Supply Chain Management: The term ‘Supply Chain Management’ is relatively new. It first appeared in logistics literature in the 1980s, as an inventory management approach with emphasis on the supply of raw materials. Logistics managers in retail, grocery, and other high inventory industries began to realize that a significant competitive advantage could be derived through the management of materials that flow in their ‘inbound’ and ‘outbound’ channels.
Supply Chain Management involves following processes:
Therefore, SCM is the integrated planning, implementation, coordination and control of all Agri-business processes and activities necessary to produce and deliver, as efficiently as possible, products that satisfies consumer preferences and requirements.
Contrasting Supply Chain Management with Traditional Management Chain
| Element | Traditional Management | Supply Chain Management |
| Inventory management approach | Independent Efforts. | Joint reduction in channel inventories. |
| Total cost approach | Minimize firm costs | Channel-wide cost efficiencies |
| Time horizon | Short-term | Long-term |
| Amount of information sharing and monitoring | Limited to needs of own current transactions | As required for planning and monitoring purposes |
| Amount of coordination of multiple levels in the channel | Single contact for the transaction between channel pairs | Multiple contacts between levels in firms and levels of channel |
| Joint planning | Transaction-based | On-going |
| Breadth of supplier base | Large to increase competition and spread risk | Small to increase coordination |
| Channel leadership | Not needed | Needed for coordination focus |
| Speed of operations, information and inventory flows | ‘Warehouse’ orientation (storage, safety stock). Interrupted by barriers to flows. Localized to channel pairs | ‘Distribution Centre’ orientation (focus on turnover speed). Interconnecting flows; JIT, Quick Response across the channel |
Agriculture Supply Chain Networks
An agriculture supply chain system comprises organizations/cooperatives that are responsible for the production and distribution of vegetable/Fruits/Cereals/Pulses or animal-based products. In general, we distinguish two main types:
Issues Related to Agriculture Supply Chains
Participants in Agriculture supply chains, e.g. farmers, traders, processors, retailers, etc, understand that original good quality products can be subject to quality decay because of an inadequate action of another participant.
For example, when a farm leaves a can of milk for pick-up on a roadside, under the sun, without any cover, there will be a loss of quality that may even render the raw material unfit for processing.
Similarly, if processors, on the other hand, use packaging items and/or technologies that do not maintain freshness and nutritional characteristics of their products as much as possible, retailers will be likely to face customer complaints.
Characteristics of Agriculture Supply Chains and its impact on Logistics
| Supply Chain Stage | Issues with Product & Process Characteristics | Impact on Logistic/Flow of goods. |
| Overall | Shelf-life constraints for raw materials, intermediates and finished products and changes in product quality level while progressing the supply chain (decay).
Recycling of Materials Required. |
• Timing constraints (goods have to be supplied quickly to avoid decay).
• Information requirements (correct information of goods is essential). |
| Growers / Producers | • Long production times (producing new or additional agro-products takes a lot of time)
• Seasonality in production • Variability of quality and quantity of supply |
• Responsiveness
• Flexibility in process and planning |
| Food processing industry | • High volume, low variety (although the variety is increasing) production systems
• Highly sophisticated capital-intensive machinery leading to the need to maintain capacity utilization • Variable process yield in quantity and quality due to biological variations, seasonality, random factors connected with weather, pests, other biological hazards • A possible necessity to wait for the results of quality tests • Alternative installations, alternative recipes, product-dependent cleaning and processing times, carry over of raw materials between successive product lots, etc. • Storage buffer capacity is restricted, when material, intermediates or finished products can only be kept in special tanks or containers • Necessity to value all parts because of the complementary nature of agricultural inputs (for example, beef cannot be produced without the co-product hides) • Necessity for lot traceability of work in process due to quality and environmental requirements and product responsibility |
• Importance of production planning and scheduling focusing on high capacity utilization
• Flexibility of recipes • Timing constraints, ICT possibility to confine products • Flexible production planning that can handle this complexity • Need for configurations that facilitate tracking and tracing |
| Auctions / Wholesalers/ Retailers | • Variability of quality and quantity of supply of farm-based inputs
• Seasonal supply of products requires global (year-round) sourcing • Requirements for conditioned transportation and storage means |
• Pricing issues
• Timing constraints • Need for conditioning • Pre-information on quality status of products |
Issues Related to Supply Chain Management in India
The Ministry of Food Processing Industry defines Food Processing to include under food processing industries, items pertaining to these two processes viz
(a) Manufactured Processes: If any raw product of agriculture, animal husbandry or fisheries is transformed through a process [involving employees, power, machines or money] in such a way that its original physical properties undergo a change and if the transformed product is edible and has commercial value, then it comes within the domain of Food Processing Industries.
(b) Other Value-Added Processes: Hence, if there is significant value addition (increased shelf life, shelled and ready for consumption etc.) such produce also comes under food processing, even if it does not undergo manufacturing processes.
The Growth of Food Processing Industry in India
As seen in the graph above, the contribution of food processing sector to GDP has been growing faster than that of the agriculture sector.
If the contribution to GDP of both agricultural sector and food processing sector were growing at the same rate, then it would mean that the growth in food processing sector is only due to increased agricultural raw material supply.
However, what this graph indicates is that more and more agricultural products are being converted (in value terms) to food products. This means that the level of processing in value terms has been increasing in India.
Person Employed by the Food Processing Industries
Food Processing Industry is one of the major employment intensive segments constituting 12.13 per cent of employment generated in all Registered Factory sector in 2011- 12.
According to the latest Annual Survey of Industries (ASI) for 2011-12, the total number of persons engaged in registered food processing sector is 17.77 lakhs.
During the last 5 years ending 2011-12, employment in registered food processing sector has been increasing at an Annual Average Growth Rate of 3.79 per cent. Unregistered food processing sector supports employment to 47.9 lakh workers as per the NSSO 67thRound, 2010-11.
Export Performance of the Food Processing Sector
All agricultural produce when exported undergo an element of processing. Hence all edible agricultural commodities exported are included in the export data. The value of exports in the sector has been showing an increasing trend with Average Annual Growth Rate (AAGR) of 20.53 per cent for five years ending 2013-14.
The value of processed food exports during 2013-14 was of the order of US $ 37.79 Billion (total exports US $ 312 Billion) constituting 12.1 per cent of India’s total exports.
Food Processing Industry in India: Growth Drivers, FDI Policy, Investment Opportunities
Growth Drivers
Factors Contributing to Growth of the Food Processing Sector.
FDI Policy
Schemes Related to Food Processing Sector in India
Pradhan Mantri Kisan Sampada Yojana
Mega Food Parks
Integrated Cold Chains and Value Addition Infrastructure
Schemes for Creation/Expansion of Food Processing/Processing Facilities
Agro Processing Clusters:
Scheme for Creation of Backward and Forward Linkages
Food Safety and Quality Assurance Infrastructure
National Mission on food processing:
Major Programs / Schemes to be covered under NMFP during 2012-13 are;
