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  • India’s jobs crisis, the macroeconomic reasons

    Burning Issue] Jobless growth in India - Civilsdaily

    Central idea 

    The article discusses the challenge of “jobless growth” in India, where the employment growth rate remains unresponsive despite increased GDP and value-added growth rates. It emphasizes the unique characteristics of India’s jobless growth regime, involving a high Kaldor-Verdoorn coefficient, and calls for a distinct policy focus on employment in addition to the traditional emphasis on GDP growth.

    Key Highlights:

    • The article discusses the distinction between wage employment and self-employment, emphasizing the challenge of inadequate labor demand, particularly for regular wage work in the formal sector.
    • India’s historical employment scenario includes open unemployment, high levels of informal employment, and a stagnant growth rate of salaried workers in the non-agricultural sector.
    • The lack of employment opportunities in the formal sector is attributed to factors such as output growth, labor productivity, and the introduction of labor-saving technologies.

    Key Challenges:

    • India faces the challenge of “jobless growth,” where the employment growth rate remains unresponsive despite a rise in GDP growth and value-added growth rates.
    • The article highlights the connection between labor productivity growth rate and output growth rate, contributing to the phenomenon of jobless growth in India.
    • The distinct form of jobless growth in India, characterized by a higher than average Kaldor-Verdoorn coefficient, poses a qualitative challenge for macroeconomic policies.

    Key Terms:

    • Kaldor-Verdoorn coefficient: A measure reflecting the responsiveness of labor productivity growth rate to output growth rate.
    • Dual economy structure: An economic structure characterized by the coexistence of a modern and traditional sector, often seen in developing countries.
    • Mahalanobis strategy: A development strategy that prioritizes heavy industrialization to overcome the constraints on output and employment.

    Key Phrases:

    • “Jobs generally refer to relatively better-paid regular wage or salaried employment.”
    • “The lack of opportunities is reflected by a more or less stagnant employment growth rate of salaried workers in the non-agricultural sector.”
    • “The positive effect of output growth rate on employment fails to counteract the adverse effect of labor-saving technologies in the Indian jobless growth regime.”

    Key Quotes for value addition:

    • “The Indian economy has historically been characterized by the presence of both open unemployment as well as high levels of informal employment.”
    • “Jobless growth in India makes the macroeconomic policy challenge qualitatively different from other countries.”

    Key Examples and References:

    • Reference to the Mahalanobis strategy focusing on heavy industrialization as a policy for overcoming constraints on output and employment.
    • Mention of the higher than average Kaldor-Verdoorn coefficient in India’s non-agricultural sector as a distinctive feature of jobless growth.

    Key Facts:

    • India’s employment growth rate in the formal non-agricultural sector has remained unresponsive despite significant increases in GDP and value-added growth rates.
    • Jobless growth in India is associated with a high Kaldor-Verdoorn coefficient, indicating a strong connection between labor productivity growth rate and output growth rate.

    Critical Analysis:

    • The article critically examines the traditional presumption that increasing the output growth rate would be a sufficient condition for increasing the employment growth rate in the formal sector.
    • It highlights the need for a separate policy focus on employment, including both demand and supply side components, in addition to the focus on GDP growth.

    Way Forward:

    • Advocate for policies addressing the skills gap and improving the quality of the workforce to make automation less attractive for firms.
    • Propose direct public job creation as a demand-side component of employment policies.
    • Suggest reorienting the macroeconomic framework to finance employment-related expenditures, including increasing the direct tax to GDP ratio and improving compliance.
  • UPSC Mains Webinar by Arvind sir: Avoid 7 Fundamental Mistakes of Repeated Mains Failed Candidates -Move from 80 to 110+ score in Every Mains Paper | 28th Dec, 6 pm

    UPSC Mains Webinar by Arvind sir: Avoid 7 Fundamental Mistakes of Repeated Mains Failed Candidates -Move from 80 to 110+ score in Every Mains Paper | 28th Dec, 6 pm

    UPSC Mains answer writing and prep mistakes you should avoid

    Join Arvind sir’s FREE webinar on 28th Dec, 6 pm

    First 100 will get Civilsdaily’s Mains Toolkit

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    In the last 3 years, a lot of things have changed about UPSC-CSE

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    “Hello UPSC aspirants, I’m Arvind Agrawal.

    Having evaluated over 1500 Mains answer copies and mentored 100+ rankers including AIR 16, 22, and 48, I’ve seen firsthand how UPSC Mains has evolved.

    After having evaluated hundreds of copies of Mains failed candidates I know what fundamental mistakes they commit to which must be avoided.

    Staying stuck to these mistakes will keep your mains score restricted in the 80s range in UPSC GS Mains paper, and this is irrespective of your content or answer writing practice.

    Join me this Thursday at 6 pm for a FREE LIVE Zoom webinar, where I’ll dissect these 5 fundamental issues with mains failed candidates and their answer writing approach that you must avoid. I will also share 10 best practices followed by UPSC IAS Toppers.

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    https://youtu.be/311IMVvztFk

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    2. Best practices my IAS topper students followed to improve their mains score from 80 to 110+ in every GS Mains papers.
    3. How to prepare content, start answer writing based on this approach?

    Join Arvind sir’s FREE webinar on 28th Dec, 6:00 pm

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    Ready to attend the UPSC Webinar?

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  • Why terrorist activity has shifted from Kashmir to Poonch-Rajouri

    Solved] Where is the Pir Panjal Range located?

    Central idea 

    The recent surge in terrorist activity in the Poonch-Rajouri sector challenges the Indian Army’s historical success in counter-terrorism operations. This shift is attributed to the path of least resistance as Kashmir becomes less conducive, prompting a need for a strategic reassessment and adaptation of deployment and operational strategies to address emerging challenges. Transparent investigations into civilian deaths and a balanced approach in public statements are crucial to maintaining public trust and stability in the region.

    Key Highlights:

    • Recent encounters in the Poonch-Rajouri sector challenge the Indian Army’s historical success in counter-terrorism operations.
    • Shift of terrorist activity to Poonch-Rajouri is due to the path of least resistance, with Kashmir facing strong counter-terrorism measures.
    • Dilution of local support, abrogation of Article 370, and focus on Pir Panjal (South) indicate a strategic shift in the region’s dynamics.
    • Questions arise about the redeployment of formations and potential dilution of optimum deployment in the sector.

    Key Challenges:

    • Losses for the Indian Army in recent encounters raise concerns about the effectiveness of current strategies and the need for potential adjustments.
    • Shift in terrorist activity to Poonch-Rajouri poses a challenge to the Army’s counter-terrorism efforts.
    • Allegations surrounding the deaths of three local civilians in suspicious circumstances require thorough investigations and pose a challenge to maintaining public trust.

    Key Terms/Phrases:

    • Poonch-Rajouri sector
    • Counter-terrorism operations
    • Proxy hybrid war
    • Counter-infiltration (CI) and counter-terrorism (CT) grid
    • Article 370
    • Pir Panjal (South)
    • Redeployment
    • Rashtriya Rifles troops

    Key Quotes:

    • “Terrorism is like water; it takes the path of least resistance.”
    • “The abrogation of Article 370 has also made Kashmir less conducive to separatist trends.”
    • “The Indian government’s demonstrated capability for retaliation when an undetermined threshold is crossed will keep Pakistan on tenterhooks.”

    Key Statements:

    • Recent encounters challenge the Indian Army’s historical success in counter-terrorism operations.
    • The strategic shift of terrorist activity to the Poonch-Rajouri sector necessitates a reassessment of deployment and operational strategies.

    Key Examples/References:

    • Shift in terrorist tactics and focus from Kashmir to the Poonch-Rajouri sector.
    • Allegations surrounding the deaths of three local civilians.

    Key Facts/Data:

    • Recent encounters in the Poonch-Rajouri sector resulted in more losses for the Army than terrorists.
    • Redeployment of troops from the Jammu sector since May 2020.

    Critical Analysis:

    • Losses in recent encounters raise questions about the effectiveness of the Army’s current strategies.
    • Shift in terrorist activity indicates the need for adaptability in response strategies.
    • Allegations surrounding civilian deaths require transparent investigations to maintain public trust.

    Way Forward:

    • Conduct a thorough review of identified weaknesses in convoy security, vehicle hardening, and reinforcement movements.
    • Adapt drills, Standard Operating Procedures (SOPs), and minor tactics to address current challenges.
    • Ensure transparent investigations into civilian deaths, with suitable disciplinary action if mistakes are identified.
    • Conduct brigade-sized operations in Pir Panjal with drone support, reinforced by strong public outreach to address local sentiments.
    • Maintain a balanced approach in public statements to prevent speculation and unrest, and continue precautionary measures in the Kashmir Valley.

  • The evolving role of the Colombo Security Conclave

    Colombo Security Conclave

    Key Highlights:

    • The Colombo Security Conclave (CSC) aims to promote a safe, secure, and stable Indian Ocean, with India playing a leadership role.
    • The CSC’s revival in 2020, after a standstill since 2014, reflects India’s evolving strategic vision for the Indian Ocean.
    • India seeks to institutionalize its role in the region, addressing security challenges and emerging threats through the CSC.
    • China’s growing influence in the Indian Ocean is a significant factor driving the CSC’s revival, with Beijing investing in the Belt and Road Initiative (BRI) and establishing a presence in key locations.

    Key Challenges:

    • Domestic political changes in member-states can impact the CSC’s effectiveness, as seen with the Maldives’ absence from a recent meeting.
    • The nationalist and pro-China sentiments in member-states may hinder collaboration, affecting the CSC’s ability to address regional challenges.
    • Despite concerns about China’s actions in the Indian Ocean, some regional countries may not view China as a threat, limiting the CSC’s collective response.

    Key Terms/Phrases:

    • Colombo Security Conclave (CSC)
    • Indian Ocean
    • Belt and Road Initiative (BRI)
    • Maritime security
    • Regional collaboration
    • Extra-regional powers
    • Indo-Pacific
    • National Security Adviser (NSA)

    Key Quotes:

    • “The lack of capacity of island nations to secure the seas and counter transnational threats has continued to motivate India.”
    • “China’s outreach to the Indian Ocean is to control crucial sea lines of communication and trade, limiting India’s influence.”

    Key Statements:

    • “The CSC offers India an opportunity to institutionalize its role, shape the regional security architecture, and better address existing and emerging threats.”
    • “The strategic accommodation and flexibility of the CSC contribute to the security of the Indian Ocean.”

    Key Examples/References:

    • China’s naval capabilities, defense relationships, and infrastructure projects in the Indian Ocean.
    • Maldives’ absence from a recent CSC meeting due to preferences for a close relationship with China or nationalist sentiments.

    Key Facts/Data:

    • The CSC was revived in 2020, with the inclusion of Mauritius, Seychelles, and Bangladesh.
    • China’s investments in the Indian Ocean include the Belt and Road Initiative projects and control of Sri Lanka’s Hambantota port.

    Critical Analysis:

    • The vulnerability of the CSC to domestic political changes highlights challenges in maintaining consistent regional collaboration.
    • The balance between addressing security concerns and managing relationships with China is crucial for the CSC’s success.

    Way Forward:

    • Strengthen institutional mechanisms within the CSC to mitigate the impact of domestic political changes.
    • Continue to focus on the five pillars of cooperation, addressing maritime security, counter-terrorism, cyber-security, humanitarian aid, and disaster relief.
    • Enhance efforts to build trust among member-states and address concerns related to nationalist and pro-China sentiments.

  • 25th Dec 23 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1559]

    [WpProQuiz_toplist 1559]

    UPSC 2024 countdown has begun! Get your personal guidance plan now! (Click here)

  • In news: Mediterranean Sea

    Central Idea

    • Iranian Revolutionary Guards has warned that the Mediterranean Sea could be closed if the US and its allies continued to commit “crimes” in Gaza.

    About Mediterranean Sea

    Details
    Location Between Europe, Africa, and Asia
    Size Approximately 2.5 million square kilometers
    Depth Average depth 1,500 meters ; Calypso Deep in the Ionian Sea, over 5,000 meters deep
    Climate Predominantly Mediterranean climate with hot, dry summers and mild, wet winters
    Bordering Countries Europe: Spain, France, Monaco, Italy, Malta, Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania, Greece, Cyprus, Turkey

    Asia: Turkey, Cyprus, Syria, Lebanon, Israel

    Africa: Egypt, Libya, Tunisia, Algeria, Morocco
    Major Water Bodies Connected Connected to the Atlantic Ocean by the Strait of Gibraltar; links to the Black Sea via the Dardanelles Strait
    Islands and Archipelagos Includes several islands and archipelagos like Sicily, Sardinia, Corsica, Cyprus, and the Balearic Islands

     

  • Nematocysts in Aquatic Ecosystems

    Central Idea

    • Evolution has crafted unique defense mechanisms in the animal kingdom, one of which is the nematocyst.

    Understanding Nematocysts

    • Structural Composition: A nematocyst comprises a capsule with a coiled tubule and a toxin-filled bulbous structure.
    • Rapid Deployment: Upon stimulation, the nematocyst ejects its tubule at an incredibly high acceleration, comparable to a bullet’s speed.
    • Fastest Biological Mechanisms: This ejection process is among the quickest in the animal kingdom.
    • Found in: Nematocysts are particularly prevalent in jellyfish, corals, sea anemones, and hydras, serving as effective tools for hunting and protection.

    Role in Cnidarians’ Survival

    • Cnidarians and Cnidocytes: Cnidarians, a group of animals characterized by cnidocytes (specialized cells), heavily rely on nematocysts for feeding and defense.
    • Activation Process: Contact with potential prey triggers sensory structures on cnidocytes, leading to the nematocyst’s release and subsequent prey immobilization or toxin injection.

    Diversity of Toxins in Nematocysts

    • Variety of Effects: Nematocyst toxins can be paralytic, halting prey movement, or cytolytic, breaking down cells.
    • Strategic Use: Cnidarians often employ a mix of toxins to enhance the effectiveness of their predatory and defensive actions.
    • Contribution to Cnidarians’ Success: The complexity and efficiency of nematocysts play a vital role in the survival and dominance of cnidarians in aquatic habitats.
    • Formidable Aquatic Predators: The presence of nematocysts makes cnidarians formidable entities in their ecosystems.

  • Project PRAYAS to help Indian youth migrate abroad

    Central Idea

    • The International Organisation for Migration (IOM) introduced Project PRAYAS (Promoting Regular & Assisted Migration for Youth and Skilled Professionals) to facilitate secure and regular migration for Indian workers and students.

    What is Project PRAYAS?

    Details
    Project Name Project PRAYAS
    Introduced By International Organization for Migration (IOM)
    Partnership Ministry of External Affairs, India
    Objective To facilitate secure and regular migration for Indian workers and students
    Key Focus Enhancing coordination between state and central governments

    Addressing India’s growing role in international migration

    Providing policy recommendations for migration governance
    IOM’s Role Promoting humane and orderly migration as a United Nations agency
    Significance Represents a consolidation of state-level efforts for well-managed international migration
    Focus Areas and Activities Conducting comprehensive studies on migration trends

    Launching awareness programs for safe and orderly migration processes

    Back2Basics: International Organisation for Migration (IOM)

    Details
    Establishment 1951
    Initial Purpose To assist in the resettlement of people displaced by World War II
    Current Role Providing services and advice on migration to governments and migrants, including various displaced persons
    Type Intergovernmental Organization
    Membership 173 member states, 8 observer states
    Headquarters Geneva, Switzerland
    Key Objectives Promote humane and orderly migration Emergency response

    Link migration with development Health and support for migrants

    Facilitate managed labor migration Counter human trafficking
    UN Relationship Became a related organization of the United Nations in 2016
    India and IOM India has been a member of IOM since 1992.

  • Bab El-Mandeb: A Strategic Choke Point

    Bab El-Mandeb

    Central Idea

    • The war between Israel and Hamas in October raised concerns about Hezbollah’s involvement, but the focus shifted when the Houthis in Yemen expanded the conflict to the Red Sea.
    • Despite tensions, Hezbollah and Israel avoided full-scale war, with Israel concentrating on Gaza.

    Houthi Involvement and Shift in Tactics

    • Initial Actions: The Houthis, aligned with Iran, initially targeted Israel in solidarity with Palestinians, using drones and missiles, which were intercepted.
    • Change in Strategy: Later, they shifted focus to attacking commercial ships in the Red Sea, threatening global shipping routes.

    Understanding the Houthis

    • Background: The Houthis, known formally as Ansar Allah, are a Shia militia group in Yemen, named after their late leaders Badr al-Din al-Houthi and Hussein al-Houthi.
    • Iranian Support: They receive direct support from Iran and have significant military capabilities, including drones and ballistic missiles.

    Strategic Importance of Bab el-Mandeb Strait

    • Geographical Significance: The Strait of Bab el-Mandeb is a crucial maritime chokepoint, connecting the Red Sea with the Gulf of Aden and the Indian Ocean.
    • Impact on Global Shipping: Houthi actions near the strait have led to a significant decrease in Red Sea traffic and increased shipping costs.

    Global and Regional Consequences

    • Effect on Israel: Israel’s southern port traffic, particularly in Eilat, has been severely impacted.
    • Broader Trade Implications: Approximately 12% of global maritime trade passes through the strait. Disruptions here could exacerbate inflationary pressures worldwide.
    • Alternative Routes: Shipping companies are rerouting around Africa, significantly increasing travel time and costs.

    International Response

    • US Naval Task Force: The U.S. has established a naval force to counter the Houthi threat.
    • Arab World’s Stance: Many Red Sea countries, including Egypt, have not joined the U.S. task force, reflecting regional discontent with U.S. policies.
    • Potential Offensive Measures: The U.S. has not ruled out bombing Houthi targets in response to continued attacks on shipping lanes.

    Conclusion

    • Continued Houthi Threat: The Houthis vow to persist in their actions as long as Israel’s conflict with Gaza continues.
    • Challenges for Global Trade: The situation underscores the fragility of global shipping routes and the potential for regional conflicts to have far-reaching economic impacts.
    • Need for Diplomatic Solutions: This complex scenario highlights the importance of diplomatic efforts to resolve regional tensions and protect vital maritime trade routes.

  • India’s Textile Crisis amid Rising MMF Fabric Imports

    Central Idea

    • Major textile hubs in India, including Ludhiana, Surat, and Erode, are grappling with the surge in imports of man-made fibre (MMF) fabrics, impacting a sector worth about $60 billion.
    • Fabric processors and weavers across these hubs express concerns over the influx of cheaper imports, primarily from China, affecting their businesses.

    Impact of Imported MMF Fabrics

    • Market Dominance: Imported fabrics, especially from China, are increasingly found in Indian markets, leading to unsold stocks and production cuts by local weavers.
    • Price Disparity: Indian weavers face competition from cheaper imported yarns, compelling them to import materials like viscose yarn from China to remain competitive.

    Statistical Overview of MMF Fabric Imports

    • Doubling of Imports: In the last three years, MMF fabric imports have doubled, with a significant portion being knitted synthetic fabrics.
    • Import Data: Daily imports from China increased from 325 tonnes in 2019-2020 to 887 tonnes in the April-June quarter of the current fiscal year, with a notable drop in average value per kg.

    Under-Invoicing and Quality Control Issues

    • Under-Invoicing Concerns: The practice of under-invoicing imported finished fabrics poses a major challenge, leading to calls for stricter customs regulations.
    • Quality Control Orders (QCOs): The government’s introduction of QCOs on MMF fibres and products, requiring BIS certification, has impacted the entire value chain.

    Consequences for Local Industry and Global Trade

    • Operational Capacity: The downstream industry is reportedly operating at only 70% capacity due to these challenges.
    • Export Decline: Exports of man-made yarn, fabrics, and made-ups have seen a year-on-year decline.
    • Global MMF Trade: India’s share in global MMF trade was 2.7% in 2019, with fabrics and yarn being major export components.

    Industry Perspectives and Government Policies

    • Innovation Gap: Industry experts highlight a lack of innovation in MMF products in India compared to countries like China, Thailand, and Korea.
    • Impact of QCOs: The introduction of QCOs, particularly at the fibre stage, is criticized for disrupting the industry, with calls for implementing quality controls at the garment stage instead.
    • Challenges for MSMEs: Small and medium enterprises face financial strain due to declining orders, high prices, and increased operational costs.
    • GST Issues and Financial Relief Demands
      • GST Refund Delays: The introduction of GST led to higher taxes on MMF fibre and yarn, with delayed refunds causing financial burdens for weavers.
      • Refund Controversy: Weavers contend that they are owed significant refunds due to the inverted duty structure, with the government potentially owing around ₹1,000 crore to the sector.

    Conclusion

    • Need for Strategic Measures: Addressing the challenges in India’s textile industry requires a balanced approach, considering both domestic capabilities and global market dynamics.
    • Government’s Role: Effective policy measures, including rationalizing import duties and quality controls, are essential to support the industry and enhance its competitiveness.
    • Future Outlook: The textile sector’s resilience and adaptability will be key in overcoming these challenges and capitalizing on potential opportunities in the global market.

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