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A roadmap to eliminate poverty in India
What’s the news?
- With the receding impact of Covid-19 and hopeful prospects for an amicable resolution to the Russia-Ukraine War, India must now focus on charting its future growth strategy
Central idea
- India’s current per capita income estimated at $2,379 in 2022-23, which needs to be raised by nearly six times over the next 25 years. This ambitious goal will pave the way for a higher standard of living and the eradication of poverty. However, achieving this vision requires a comprehensive understanding of the challenges ahead and the necessary actions to overcome them.
What is per capita income?
- Per capita income refers to the average income earned by individuals in a specific geographic area. It is calculated by dividing the total income of a population by the total number of individuals in that population.
- Per capita income provides an indicator of the average standard of living and economic well-being within a given population.
What is Gross Fixed Capital Formation (GFCF)?
- GFCF refers to the total value of investment in fixed assets within an economy, such as machinery, equipment, buildings, and infrastructure, during a specific period.
- It represents the net increase in the stock of fixed capital goods.
- GFCF is an essential component of aggregate demand and is considered a driver of economic growth.
- Higher levels of investment in fixed assets contribute to increased production capacity, improved productivity, and long-term economic development.
- The GFCF ratio is often expressed as a percentage of GDP, indicating the proportion of total investment in fixed assets relative to the size of the economy.
What is incremental capital-output ratio (ICOR)?
- The ICOR is an economic indicator that measures- amount of investment required to generate an additional unit of output.
- It represents the ratio between the change in capital investment and the corresponding change in output or GDP.
- It provides insights into the efficiency of capital utilization and the productivity of investment in an economy.
- A lower ICOR indicates that a smaller amount of investment is required to generate a given increase in output, indicating higher efficiency and productivity of capital.
- A higher ICOR suggests that a larger amount of investment is needed to achieve the same level of output growth, indicating lower efficiency of capital utilization.
Growth Target and Investment Requirements
- To sustain continuous growth of 7 percent over the next 25 years, India must maintain a GFCF rate of 28 percent.
- According to the latest release of NSO, the GFCF rate in current prices for 2022-23 is 29.2 per cent of GDP.
- While the commonly assumed incremental capital-output ratio (ICOR) of 4 suggests improved capital efficiency, recent trends indicate an average ICOR of 4.65 from 2016-17 to 2022-23.
- Acknowledge the evolving ICOR and work towards an estimated investment rate of 30-32 percent of GDP.
- Both public and private investments, especially from the corporate and non-corporate sectors, need to increase.
- Direct investments into sectors that promote growth and generate employment opportunities
- Welcoming Foreign direct investment in emerging technological sectors
What global factors at present poses challenges?
- The overall climate for peace– necessary for growth– deteriorated- Ukraine-Russia conflict.
- Prolonged tension and conflicts- negative impact on global stability and economic growth.
- Shifting attitude of some countries towards global trade.
- Developed countries, which previously advocated for free trade, are now imposing restrictions on imports– challenges for developing countries like India, particularly as they strive to compete in the world market.
- Supply disruptions of critical imports, such as oil, can cause setbacks for developing and developed countries alike.
- The absorption of new technologies, such as Artificial Intelligence (AI)- impact on the industrial structure and employment landscape– challenge for populous countries like India
- Balancing economic growth with environmental sustainability may require compromises and adjustments in the growth rate.
What strategy India must follow to sustain its growth?
- India’s economic transformation in 1991 marked a departure from the past, embracing a more market-oriented approach.
- India needs to adopt a multi-dimensional approach that encompasses agriculture, manufacturing, and exports.
- Given India’s strength in the services sector, it is essential to preserve and enhance this advantage.
- Prepare to absorb new technologies, including Artificial Intelligence (AI),
- Reorienting the educational system to equip students with required skills and
- Identifying labour-intensive economic activities to address potential job losses due to adoption of technology
Conclusion
- India has made significant strides in building a strong and diversified economy over the past 75 years. However, India’s per capita income remains low compared to many countries, emphasizing the need for sustained growth. By addressing domestic challenges, seizing opportunities, and prioritizing inclusive development, India can realize its vision of a prosperous and equitable future.
Also read:
Why Indian manufacturing’s productivity growth is plummeting and what can be done?
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Global Biofuel Alliance can power India’s energy transition drive, but must have time-bound targets
What’s the news?
- The upcoming 14th Clean Energy Ministerial and Eighth Mission Innovation (CEM14/MI-8) conference, scheduled to take place in Goa from July 19-22, 2023, will witness the establishment of the Global Biofuel Alliance (GBA).
Central Idea
- The prospected establishment of the Global Biofuel Alliance (GBA) led by India during its G20 Presidency, with support from Brazil and the United States, aims to foster international collaboration and cooperation to promote the acceptance and utilization of biofuels. It seeks to leverage the transformative potential of biofuels in economic growth, rural development, energy self-sufficiency, reduced air pollution, and the global transition to clean energy.
What is Biofuel?
- Biofuel is derived from biological sources, such as plants, agricultural crops, organic waste, or animal by-products.
- It is a renewable energy source that can be used as an alternative to fossil fuels.
- The production and use of biofuels aim to reduce greenhouse gas emissions and promote sustainability.
Key types of biofuels
- Bioethanol: This is an alcohol-based fuel primarily produced by fermenting sugar or starch crops, such as sugarcane, corn, or wheat. Bioethanol is commonly used as a blend in gasoline for transportation purposes.
- Biodiesel: Biodiesel is produced from vegetable oils, animal fats, or recycled cooking oil. It can be used as a direct replacement for or blended with conventional diesel fuel in vehicles.
- Biogas: Biogas is a mixture of gases, primarily methane, produced through the anaerobic digestion of organic waste materials such as agricultural residues, food waste, or sewage. It can be used for electricity generation, heating, or as a vehicle fuel.
Key Objectives and Initiatives of Global Biofuel Alliance (GBA)
- Developing robust markets for biofuels and facilitating global trade in biofuels.
- Promote policy coordination, share concrete policy lessons, and provide technical support to national biofuel programs worldwide.
- Collaborate and complement- existing regional and international agencies– energy transition initiatives, such- Clean Energy Ministerial Biofuture Platform, the Mission Innovation Bioenergy initiatives, and the Global Bioenergy Partnership (GBEP).
- By leveraging synergies–maximize impact and accelerate the biofuel industry’s growth.
India’s Biofuel Program India’s and significant strides in recent years
- Ethanol Production: In 2020-21, India produced 4.08 billion liters of ethanol, resulting in a blending rate of 10.02%. This led to a reduction of 2.7 million tonnes of CO2 emissions and significant savings in forex.
- Blending Targets: The current target for 2022-23 is to achieve a blending rate of 12%, with the ultimate goal- 20% by 2025.
- Compressed Bio-Gas (CBG) Program:
- India actively promoting CBG as a clean fuel derived from waste through the Sustainable Alternative Towards Affordable Transportation (SATAT) program. As of 46 CBG plants established so far, and around 16,164 tonnes of CBG have been sold.
- The goal- install 5,000 CBG plants across India by 2024, contributing- waste management -reducing pollution.
- Sustainable Aviation Fuel (SAF):
- India conducted its first commercial passenger flight– domestically produced sustainable aviation fuel (SAF) blend– commitment to decarbonizing the aviation sector.
- The establishment of the Bio-Aviation Turbine Fuel Program Committee by the Union Ministry of Petroleum and Natural Gas further advances the development of sustainable aviation fuel in the country.
Inspiration behind GBA: International Solar Alliance (ISA)
- The ISA jointly initiated by India and France in 2015.
- The ISA- significant contributions to combating climate change through widespread adoption of solar energy solutions.
- Facilitated- solar project development – initiatives like the Solar Finance Facility, SolarX Grand Challenge, Solar Technology Application Resource Centres, and the ‘One Sun One World One Grid Initiative.‘
- The GBA aims to replicate the success of the ISA by promoting the utilization of biofuels and reducing India’s reliance on foreign oil.
Conclusion
- The GBA is poised to revolutionize the global biofuel industry. India’s leadership in the G20 Presidency highlights the importance of biofuels in achieving energy independence, reducing carbon emissions, and fostering a clean energy transition. The GBA’s detailed roadmap, ambitious targets and initiatives will pave the way for a greener and more sustainable future.
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[pib] National Multidimensional Poverty Index, 2023
Central Idea
- NITI Aayog released the report ‘National Multidimensional Poverty Index: A Progress Review 2023’.
- The report highlighted a record 13.5 crore people have moved out of multidimensional poverty in India between 2015-16 and 2019-21.
What is National Multidimensional Poverty Index (NMPI)?
- NITI Aayog serves as the nodal ministry for the MPI.
- It engages with publishing agencies such as Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
- It uses the Alkire-Foster (AF) methodology.
- The Baseline Report of MPI is based on the National Family Health Survey (NFHS) 4 conducted during 2015-16.
Indicators used
- The MPI considers three dimensions: health, education, and standard of living.
- It includes indicators such as nutrition, child and adolescent mortality, maternal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, bank accounts, and assets.
Key findings of the report
- Decline in Poverty: India has witnessed a substantial decline in multidimensional poverty, with a decrease of 9.89 percentage points from 24.85% in 2015-16 to 14.96% in 2019-21.
- Progressiveness in rural areas: Rural areas experienced the fastest decline, from 32.59% to 19.28%, while urban areas saw a reduction from 8.65% to 5.27%.
- Regional Progress: UP recorded the largest decline in the number of poor, with 3.43 crore people escaping multidimensional poverty. The states of UP, Bihar, Madhya Pradesh, Odisha, and Rajasthan showed the fastest reduction in the proportion of multidimensional poor.
- Path towards SDG Targets: The report indicates that India is on track to achieve SDG Target 1.2, which aims to reduce multidimensional poverty by at least half by 2030.
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Crimean-Congo Haemorrhagic Fever (CCHF)
Central Idea
- Europe is currently experiencing a heatwave and wildfires, leading to concerns about the spread of viruses that are typically not found in colder climates.
- The WHO has issued an alert regarding the Crimean-Congo haemorrhagic fever (CCHF), a potentially fatal infection transmitted by ticks.
What is CCHF?
- CCHF is a viral haemorrhagic fever primarily transmitted by ticks.
- It can also be contracted through contact with viraemic animal tissues during animal slaughter.
- CCHF outbreaks can lead to epidemics with a high case-fatality ratio (10-40%) and pose challenges for prevention and treatment.
Transmission and Hosts
- The virus exists in the tick family of insects.
- Animals such as cattle, goats, sheep, and hares serve as amplifying hosts for the virus.
- Humans can contract CCHF through contact with infected ticks or animal blood.
- The virus can also be transmitted between humans through contact with infectious blood or body fluids.
- Migratory birds can host ticks, allowing the virus to spread over long distances.
Symptoms and Treatment
- Common symptoms of CCHF include fever, muscle aches, dizziness, neck and back pain, headache, sore eyes, and sensitivity to light.
- Early symptoms may also include nausea, vomiting, diarrhea, abdominal pain, and sore throat, followed by mood swings and confusion.
- Later stages may involve sleepiness, depression, and lassitude.
- There is no vaccine available for CCHF in humans or animals, and treatment focuses on managing symptoms.
- The antiviral drug ribavirin has been used to treat CCHF infection with some apparent benefit.
Spread of CCHF in Europe
- CCHF is endemic to Africa, the Balkan countries, the Middle East, and parts of Asia.
- In 2016, Spain reported the first fatality from CCHF in Europe.
- Scientists warn that CCHF, which can have a fatality rate between 10% and 40%, is spreading northward and westward in Europe.
- Cases of CCHF have been reported in Spain, Russia, Turkey, and the UK.
Reasons for this spread
- Disrupted temperature patterns due to climate change are creating favorable conditions for pathogens.
- CCHF ticks are moving northward through Europe due to longer and drier summers caused by climate change.
- Climate change contributes to the spread of diseases by expanding tick habitats, altering water habitats, and facilitating the movement of animals and human interactions.
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EAM attends BIMSTEC Foreign Ministers’ Meet
Central Idea
- The first-ever Foreign Ministers’ meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) commenced in Bangkok, Thailand.
Understanding BIMSTEC
- Origins and Membership: BIMSTEC, initially known as BIST-EC (Bangladesh-India-Sri Lanka-Thailand Economic Cooperation), was established in 1997 with the signing of the Bangkok Declaration.
- Newest members: Myanmar joined in 1997, followed by Bhutan and Nepal in 2004.
- Population and GDP: The organization comprises seven member countries located around the Bay of Bengal, representing approximately 22% of the world’s population. The combined GDP of the member states is close to $2.7 trillion.
- Sectoral Focus: BIMSTEC’s cooperation initially focused on six sectors: trade, technology, energy, transport, tourism, and fisheries.
- India’s role: India’s sectoral responsibilities within BIMSTEC include security, counter-terrorism, transnational crime, disaster management, and energy.
Significance of BIMSTEC as a Regional Forum
(A) Revitalization and Engagement:
- BIMSTEC received limited attention until India reinvigorated its engagement in October 2016, following the terrorist attack in Uri.
- India hosted an outreach summit with BIMSTEC leaders alongside the BRICS summit in Goa.
(B) Regional aspirations
Each BIMSTEC member has strategic incentives for the organization’s growth.
- Bangladesh seeks regional significance
- Sri Lanka aims to connect with Southeast Asia and become a hub for the Indo-Pacific region
- Nepal and Bhutan aim to access the Bay of Bengal region
- Myanmar and Thailand aim to balance China’s influence in Southeast Asia by strengthening ties with India
India and BIMSTEC
- BIMSTEC offers India a platform to prioritize its foreign policy goals of “Neighborhood First” and “Act East”.
- This is longer run seeks to connect South and Southeast Asia, as well as the Himalayas and the Bay of Bengal.
China’s Role and India’s Agenda
- Chinese Influence and Concerns: China’s expanding presence in South and Southeast Asia through the Belt and Road Initiative has increased its interest in the Bay of Bengal region.
- Act of counterbalancing: BIMSTEC becomes an arena for India to counterbalance Chinese investments.
- Promoting Connectivity: India can utilize BIMSTEC to promote connectivity projects aligned with international norms, countering Chinese projects that are perceived to violate these norms.
- Bay of Bengal as a Peaceful Region: India can showcase the Bay of Bengal as a region of openness and peace, highlighting the contrast with China’s behavior in the South China Sea.
- Regional Stability: BIMSTEC could establish codes of conduct for regional freedom of navigation and advocate for a Bay of Bengal Zone of Peace to limit extra-regional powers’ military actions.
Conclusion
- BIMSTEC has the potential to contribute to peace, stability, and economic development in the Bay of Bengal region and beyond.
- Continued efforts and collaboration among member states are necessary to harness the full potential of BIMSTEC and achieve common goals.
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What is Rho Ophiuchi Cloud Complex?
Central Idea
- NASA recently released an image obtained by the James Webb Space Telescope, showcasing the Rho Ophiuchi cloud complex, which is the closest star-forming region to Earth.
- This image marked one year since NASA unveiled the telescope’s first scientific results.
What is Rho Ophiuchi Cloud Complex?
- The Rho Ophiuchi Cloud Complex is a molecular cloud located in the constellation Ophiuchus.
- It is centered 1° south of the star ρ Ophiuchi and extends to other parts of the constellation.
- At an estimated distance of about 140 parsecs, or 460 light years, it is one of the closest star-forming regions to the Solar System.
- It consists of several dark nebulae, which are dense regions of interstellar dust and gas that block background starlight.
- The cloud complex contains numerous young stellar objects, including protostars, young stars, and brown dwarfs.
- These stellar objects form as the dense material in the cloud collapses under gravity, leading to the birth of new stars.
Observations from the Image
- Material Jets and Surrounding Gas/Dust: The image illustrates how the material jets emanating from young stars influence the surrounding gas and dust while illuminating molecular hydrogen.
- Glowing Cave Carved by Stellar Winds: One part of the image shows a star inside a glowing cave carved out in space by its stellar winds.
- Impressive Nebula with Bright Young Stars: The image showcases an impressive nebula with three bright young stars at the top, revealing the size and detail of the jets and outflows.
Insights from the new findings
- Formation of New Suns: Rho Ophiuchi image demonstrates the formation of new suns and planet-forming disks, resembling what scientists believe the early solar system looked like over 4.5 billion years ago.
- Violent Outbursts and Dusty Cocoons: The image unveils the process of stars and planetary systems assembling, as well as the dusty cocoons being disrupted by violent outbursts, portrayed as red jets cutting through the cloud.
- Visibility through Dust: The Rho Ophiuchi core is usually obscured by extensive amounts of dust, making it invisible to telescopes working in visible light, like the Hubble telescope. However, JSWT penetrates the dust, revealing the young stars within and providing insights into the early stages of star formation.
Back2Basics: James Webb Space Telescope
Collaboration NASA, European Space Agency (ESA), Canadian Space Agency Launch December 2021 Location Sun-Earth L2 Lagrange point, approximately 1.5 million km beyond Earth’s orbit Size and Capability Largest, most powerful infrared space telescope Successor to Hubble Telescope Time Observations Can see backwards in time to just after the Big Bang Objectives Examine every phase of cosmic history, including the formation of galaxies, stars, and planets. Look back 13.5 billion years to see the first stars and galaxies forming.
Compare early galaxies to today’s spirals to understand galaxy assembly.
Observe star and planetary system formation.
Study the atmospheres of extrasolar planets and search for signs of life elsewhere in the universe.
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Kuki Groups seek Separation from Manipur
Central Idea
- Kuki Inpi Manipur (KIM), the apex body of Kuki tribes, issued a statement calling for a separate state under Article 3 of the Constitution.
Manipur violence: A quick recap
- The ethnic conflict in Manipur originated on May 3 between the Meitei people (valley-based) and the Kuki-Zomi people (hills-based Scheduled Tribe groups).
- The violence resulted in the forced migration of the two populations, prompting Kuki-Zomi MLAs and various groups to call for separation.
What is Article 3 of the Indian Constitution?
- Article 3 grants the Parliament the authority to create new states, modify boundaries, and rename existing states in India.
- It establishes the legal framework for the reorganization of states within the country.
- Here is the text of Article 3: Parliament may by law—
- Form a new State by separation of territory from any State or by uniting two or more States or parts of States or by uniting any territory to a part of any State
- Increase the area of any State
- Diminish the area of any State
- Alter the boundaries of any State
- Alter the name of any State
Procedural Requirements
Certain procedural requirements must be fulfilled before enacting changes under Article 3:
- Presidential Recommendation: No Bill pertaining to these matters can be introduced in Parliament without the recommendation of the President.
- State Legislature Consultation: If a proposed bill affects the area, boundaries, or name of any state, it must be referred by the President to the concerned state legislature.
- Time frame: The state legislature is given a specific period to express its views on the proposed changes. Additional time may be granted by the President, if necessary.
Significance of Article 3
- Alteration for reasons: Article 3 provides a mechanism to adapt the political boundaries of states in India as per the evolving needs of the nation.
- Power Sharing: While the Parliament holds the authority to initiate state reorganization, the consultation with the state legislature ensures a democratic process and considers the views of the affected state.
- Regional Aspirations: Article 3 acknowledges the aspirations of various regions by allowing the formation of new states, thereby promoting regional development and administration.
- Flexibility: The provision for altering state boundaries enables the government to address demographic changes, regional imbalances, and administrative efficiency.
Why is the demand by Kukis not feasible?
- Social and Political Cohesion: The consideration of endorsing separate administrative setups or a greater Mizoram based on ethnic lines raises concerns about social and political cohesion in Manipur.
- Tensions with Naga Community: Tensions between the Kuki and Naga communities in Manipur complicate the situation and have the potential to escalate conflicts.
- Unique Cross-Border Presence: The demand for a separate homeland for the Chin-Kuki-Mizo community requires careful evaluation due to its unique cross-border presence and potential for Pan-Nationalism.
- Implications on Regional Stability: Recognition of a separate homeland would strain relations with Myanmar and Bangladesh, impacting regional stability.
Conclusion
- Cautious Decision-Making: The Indian government must navigate the complexities by considering the broader implications on Manipur’s stability, cross-border relations, and the risk of future conflicts stemming from ethnic separatism.
- Inclusive Dialogue and Peace: Inclusive dialogue, addressing grievances, and promoting peace and unity among all ethnic communities involved are crucial for long-term stability and harmonious coexistence.
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18th Jul 23 | Prelims Daily with Previous Year Questions
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18th July| Daily Answer Writing Enhancement | 14 Days Ethics Challenge
On Day 2 of 14 Days Ethics Challenge these questions were discussed in the closed Telegram group. You are also expected to attempt and submit these in the comment section below.
Part A Human Values – lessons from the lives and teachings of great leaders, reformers and administrators; role of family, society and educational institutions in inculcating values.
Q1. All human beings aspire for happiness. Do you agree? What does happiness mean to you? Explain with examples. (150 Words) 2014
Q2. “If a country is to be corruption free and become a nation of beautiful minds, I strongly feel there are three key societal members who can make a difference. They are father, the mother and the teacher” A.P.J. Abdul Kalam. Analyse (150 Words) 2017
Q.3 Which eminent personality has inspired you the most in the context of ethical conduct in life? Give the gist of his/her teachings. Giving specific examples, describe how you have been able to apply these teachings for your own ethical development. (150 words) 2014
Q.4 What are the main factors responsible for gender inequality in India? Discuss the contribution of Savitribai Phule in this regard. (150 Words) 2020
Part B- Theme: Ethics in private and public relationships
You are a young, aspiring and sincere employee in a Government office working as an assistant to the director of your department. Since you have joined recently, you need to learn and progress. Luckily your superior is very kind and ready to train you for your job. He is a very intelligent and well-informed person having knowledge of various departments. In short, you respect your boss and are looking forward to lean a lot from him. Since you have good tuning with the boss, he started depending on you. One day due to ill health he invited you at his place for finishing some urgent work. You reached his house and before you could ring the bell you heard shouting noises. You waited for a while. After entering the house, the boss greeted you and explained the work. But you were constantly disturbed by the crying of a woman. At last, you inquired with the boss but his answer did not satisfy you.
Next day, you were compelled to inquire further in the office and found out that his behavior is very bad at home with his wife. He also beats up his wife. His wife is not well educated and is a simple woman in comparison to her husband. you see that though your boss is a nice person inthe office, he is engaged in domestic violence at home.
In such a situation, you are left with the following options. Analyse each option with its
consequences. (2016)(a) Just ignore thinking about it because it is their personal matter.
(b) Repost the case to the appropriate authority.
(c) Your own innovative approach towards situation.
