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Subject: Economics

  • [pib] Pradhan Mantri Mudra Yojana (PMMY)

    mudra

    Why in the News?

    • The Centre has doubled the limit of Mudra loan amount under the PMMY to Rs 20 lakh from Rs 10 lakh under a new ‘Tarun Plus’ category to promote entrepreneurship in the country.
      • This higher loan limit is available to entrepreneurs who have previously taken and successfully repaid loans under the existing ‘Tarun’ category.

    About Pradhan Mantri Mudra Yojana (PMMY):

    Details
    Launch  Launched on April 8, 2015, by Prime Minister.
    Objective
    • To provide financial assistance and support to non-corporate, non-farm small and micro-entrepreneurs through collateral-free loans.
    • Non-corporate, non-farm small and micro-entrepreneurs are individuals or entities that operate small-scale businesses outside the corporate and agricultural sectors. 
    • These include self-employed workers, small retail shops, artisans, repair services, and other informal sector businesses, often with limited capital and workforce.
    Recent Update Loan limit increased from Rs 10 lakh to Rs 20 lakh under the new Tarun Plus category, announced in July 2024.
    Loan Categories Shishu: Loans up to Rs 50,000
    Kishore: Loans between Rs 50,000 and Rs 5 lakh
    Tarun: Loans between Rs 5 lakh and Rs 10 lakh
    Tarun Plus: Loans between Rs 10 lakh and Rs 20 lakh
    Loan Performance (2023-24) 66.8 million Loans sanctioned totaling Rs 5.4 trillion.
    • Over 487.8 million loans worth Rs 29.79 trillion sanctioned since launch.
    NPA Statistics • NPA of public sector banks under Mudra loans decreased to 3.4% in FY24, down from 4.77% in 2020-21.
    • Gross NPA for scheduled commercial banks at 2.8% as of March 2024.
    Target Beneficiaries Aims to empower women, minorities, and marginalized communities by facilitating easy access to credit.
    Technological Intervention
    • MUDRA Card: An innovative credit product that offers an overdraft facility and can be used like a debit card for transactions.
    • MUDRA MITRA App: A mobile application providing information about MUDRA and its schemes, guiding loan seekers to approach banks for availing loans.

     

    PYQ:

    [2016] Pradhan Mantri MUDRA Yojana is aimed at:

    (a) Bringing the small entrepreneurs into formal financial system.

    (b) Providing loans to poor farmers for cultivating particular crops.

    (c) Providing pension to old and destitute persons.

    (d) Funding the voluntary organizations involved in the promotion of skill development and employment generation.

  • [30th October 2024] The Hindu Op-ed: A picture of a growing economic divide in India

    PYQ Relevance:

    Q) Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? (UPSC CSE 2020)
    Q) How have the recommendations of the 14th Finance Commission of India enabled the States to improve their fiscal position? (UPSC CSE 2021)
    Q) “Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. (UPSC CSE 2021)

    Mentor’s Comment: 

    “We cannot build a modern India without addressing the issue of poverty and inequality.” 

    – Dr. Manmohan Singh

    In a nation where the top 10% hold 77% of the wealth, true progress can only be measured by the upliftment of the bottom half. Addressing regional disparities is essential for a harmonious India; without it, growth becomes a privilege of the few rather than a right for all.

    Today’s editorial discusses the widening economic disparities among Indian states and the implications of this divide.

    _

    Let’s learn!

    Why in the News?

    Household savings and private investments are increasingly concentrated in wealthier states, leading to a widening gap between rich and poor regions. These increasing economic disparities among Indian states have huge implications for Indian federalism.

    Current State of Economic Divide in India:

    • Per Capita Income Disparities: Wealthier states, primarily in the south and west, have significantly higher per capita incomes compared to poorer states in the north and east. As of 2019-20, per capita State Domestic Product (SDP) in wealthier states was approximately 2.5 times higher than in poorer states, up from a 1.7 times difference in 1990-91.
    • Sectoral Growth Gaps: The disparity is particularly pronounced in the manufacturing and services sectors. Wealthier states exhibit a much higher per capita SDP in manufacturing (3.6 times) and services (2.9 times) compared to their poorer counterparts.

    Primary factors contributing to the growing economic divide among Indian states

    • Sectoral Growth Disparities: Wealthier states have significantly higher outputs in manufacturing and services, leading to greater economic growth compared to poorer states.
      • As income rises, people spend less on food and more on manufactured goods and services. Secondly, India’s services sector has grown, but employment has been more modest.
    • Investment Patterns: A shift from public to private investment has favored wealthier states, resulting in concentrated resources and opportunities.
    • Infrastructure Gaps: Poorer states often lack adequate power supply and infrastructure, hindering their ability to attract industries and grow economically.
    • Educational Disparities: Access to quality education is uneven, with most higher education institutions in wealthier states, limiting skill development in poorer regions. 

    How does the economic divide affect federalism and governance in India?

    • Erosion of Federal Principles: Disparities challenge equitable resource distribution, leading to dissatisfaction among wealthier states that feel under-compensated.
    • Political Centralization: Increased control by the central government limits state autonomy, reducing their ability to address regional economic challenges.
    • Investment Disparities: Wealthier states attract more private investment, while poorer states struggle due to inadequate infrastructure, perpetuating inequality.
    • Governance Challenges: Poorer states face corruption and weak institutions, hindering effective policy implementation and further entrenching poverty.
    Initiatives taken by the Government:

    • Aspirational Districts Programme (ADP): Launched in 2018, this program aims to transform the performance of 112 districts lagging in key social indicators by promoting holistic development through targeted interventions in health, education, and infrastructure. This initiative focuses on blocks within districts that need special attention, aiming to improve governance and service delivery at the grassroots level.
    • Special Economic Zones (SEZs): The government has established SEZs to attract investment and promote industrial growth in underdeveloped regions, encouraging economic activities and job creation.
    • Pradhan Mantri Gram Sadak Yojana: It focuses on improving rural road connectivity, which is crucial for economic development in remote areas.
    • FC Recommendations: The 15th Finance Commission has recommended increasing the share of tax revenues allocated to states, particularly those with greater needs, to help address regional disparities.

    What strategies can bridge the Economic Divide and promote Inclusive Growth?

    • Boost Entrepreneurship and Skill Development: Encourage entrepreneurship in poorer states through targeted support and training programs. Enhance skill development initiatives to equip the workforce with the necessary skills for emerging industries.
    • Upgrade Infrastructure: Invest in improving power supply and overall infrastructure in economically lagging regions, particularly in the Gangetic and eastern areas, to facilitate industrial growth and attract investment.
    • Expand Access to Education: Increase access to technical and vocational education in poorer states to improve employability and attract high-tech industries. Focus on creating educational opportunities that cater to local economic needs.
    • Form Interconnected National Value Chains: Develop value chains that link resources from wealthier states with the potential of poorer ones, fostering balanced economic growth across regions.

    https://www.thehindu.com/opinion/lead/a-picture-of-a-growing-economic-divide-in-india/article68811441.ece

  • What challenges does India face in fertilizer imports?

    Why in the News?

    As the crises in Ukraine and Gaza persist, experts and policymakers are increasingly concerned about further rises in the costs of components essential for producing petroleum-based chemical fertilizers.

    Current Scenario of Fertilizer Imports:

    • India’s domestic fertilizer production capacity does not meet the full demand, requiring substantial imports to bridge the gap.
      • Urea: Approximately 20% of India’s urea requirement is met through imports.
      • Diammonium Phosphate (DAP): Around 50-60% of DAP demand is fulfilled by imports.
      • Muriate of Potassium (MOP or Potash): 100% of India’s MOP demand is met through imports, as there is no domestic production.
    • The Standing Committee on Chemicals and Fertilizers (August 2023) expressed concern about India’s dependence on imports for fertilizers, recommending an increase in domestic production capacity.

    How did the conflict in Ukraine impact the Global Fertilizer Market?

    • Market Instability: Ongoing conflicts in Ukraine and Gaza are disrupting the stability of the global fertilizer market, particularly affecting the prices of oil and petroleum-based fertilizers.
    • Supply Chain Disruptions: These conflicts affect global supply chains, particularly for fertilizer-producing countries such as Russia, which has been a significant source of fertilizer imports for India.
    • Price Volatility: Higher oil prices due to geopolitical tensions in Ukraine and Gaza indirectly drive up costs of fertilizers, as these are often by-products of petroleum.

    Its effects on India

    • Rising Import Costs: Increased global fertilizer prices lead to higher import costs for India, putting pressure on the fertilizer subsidy budget.
    • Potential Supply Constraints: India’s reliance on imports from conflict-affected regions like Russia and West Asia (including the Middle East) poses risks of reduced fertilizer availability.
    • Budget Strain: India’s fertilizer subsidy allocation for 2023-24 was ₹1.79 lakh crore, with substantial amounts dedicated to both indigenous and imported fertilizers.
    • Need for Self-Reliance: The conflicts underscore the importance for India to reduce dependency on imports by increasing domestic production capacity, promoting alternatives like nano urea, and exploring sustainable practices like natural farming.

    Steps taken by the government: 

    • New Investment Policy (NIP): NIP supports new urea manufacturing units by PSUs and private companies, boosting production capacity from 207.54 LMTPA in 2014-15 to 283.74 LMTPA.
    • Nutrient-Based Subsidy (NBS): The government included Potash from Molasses under NBS in 2021, encouraging local production and reducing import dependency.
    • Public-Private Joint Ventures: PSUs and private firms collaborate in urea production, establishing units like the Ramagundam Fertilizers in Telangana and Hindustan Urvarak & Rasayan plants in northern states.

    Way forward: 

    • Boost Domestic Production: Increase India’s fertilizer production capacity through investment in domestic infrastructure and support for nano urea and alternative sustainable fertilizers to reduce import dependency.
    • Adopt Policy Reforms: Implement policies promoting self-reliance in fertilizers, with targeted subsidies and incentives for private, public, and cooperative sectors to enhance production and ensure affordable supply amidst global market volatility.
  • [28th October 2024] The Hindu Op-ed: The private sector holds the key to India’s e-bus push

    PYQ Relevance:

    Q) Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (UPSC CSE 2022)

    Q) Examine the development of Airports in India through joint ventures under Public – Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard. (UPSC CSE 2017)

    Q) Adoption of PPP model for infrastructure development of the country has not been free of criticism. Critically discuss the pros and cons of the model. (UPSC CSE 2013)

    Mentor’s Comment: The Indian government, through NITI Aayog, is developing an incentive scheme tailored for private bus operators, who currently account for about 90% of the bus fleet in India. This move is crucial for achieving the target of 40% e-bus penetration by 2030 and reaching carbon neutrality by 2070.

    Despite existing support under the FAME-II scheme, which primarily benefits state transport undertakings (STUs), the high costs associated with e-buses deter private operators from making the switch. The forthcoming incentive scheme is seen as a potential game-changer that could facilitate the broader adoption of electric buses in public transportation.

    Today’s editorial discusses the role of the private sector in India’s electric bus (e-bus) initiative. Today’s discussions will focus more on creating a supportive environment for e-bus deployment beyond state-run services.

    _

    Let’s learn!

    Why in the News?

    Despite the government’s push through schemes like FAME II and PM e-Bus Sewa, which have incentivized electric vehicles for public transport, private bus operators have seen little benefit.

    • Presently, the government is planning to introduce a new incentive scheme specifically aimed at encouraging private operators to invest in e-buses.
    Challenges Faced by Private Operators:

    Lack of Financial Incentives: Current government schemes do not extend to private operators, making it difficult for them to invest in e-buses.
    High Initial Costs: The substantial upfront investment required for electric buses is prohibitive for many small operators.
    Charging Infrastructure: Limited access to charging stations and facilities further complicates the adoption of e-buses. Most charging infrastructure is designed for state-run units, leaving private operators without adequate support.
    Operational Inefficiencies: Restrictions on parking and charging at government depots create logistical challenges for private bus operations.

    How can the private sector be incentivized to participate in the e-bus market?

    1) Financial Incentives: The incentivized schemes and subsidies could significantly lower the upfront costs associated with e-bus acquisition, which can be up to five times that of diesel buses.

    • Offering viability gap funding for charging infrastructure and land leases could attract private investment.
    • Implementing a payment security mechanism can protect private operators against payment delays from state transport undertakings (STUs).

    2) Infrastructure Development: Establishing a robust network of charging stations is crucial. Under the Gross Cost Contract (GCC) Model, STUs pay a fixed cost per kilometer, ensuring steady income for operators while minimizing their risk exposure without bearing the full financial burden upfront.

    • This Flexible Leasing model enables operators to access capital without high initial investments, as maintenance and operational responsibilities can be shared.

    What role does financing play in the adoption of electric buses?

    • High Initial Costs: The upfront costs of e-buses are significantly higher than those of traditional diesel buses, often up to five times more expensive, operators may find it challenging to justify the investment in e-buses despite their long-term operational savings.
    • Need for Dedicated Financing Facilities: Establishing a dedicated e-bus financing facility could provide concessional loans and grants, helping shield manufacturers and operators from the payment security risks posed by financially struggling state road transport undertakings (SRTUs). 
    • Interest Rate Subventions: To encourage private operators to invest in e-buses, interest rate subventions of 4-6% on loans can be implemented. Lower interest rates can significantly ease the financial burden during the repayment period, making financing more accessible.
    • Leasing Models: Financing institutions can offer leasing options that include maintenance and battery replacement, thus sharing operational risks with bus operators. This approach not only lowers upfront costs but also allows operators to manage cash flow more effectively.

    What infrastructure improvements are necessary for successful e-bus deployment?

    • Installation of Charging Stations: Establishing charging points within bus depots is crucial. A widespread infrastructure network will alleviate concerns about range and downtime, making e-buses a more viable option for operators.
    • Depot Charging Facilities: Private operators currently face restrictions in accessing government bus depots for parking and charging. Granting them access would streamline operations and improve efficiency by reducing the distance drivers must travel to pick up their buses.
    • Power Supply Management: The increased demand for electricity from charging e-buses can strain local power grids. Therefore, collaboration between bus operators and electricity distribution companies (DISCOMs) is vital for planning and managing this demand effectively. 
    • Pilot Projects: Implementing pilot projects in tier-2 and tier-3 cities can help assess infrastructure requirements and operational challenges before scaling up to larger urban areas.
      • For example, electrifying a specific route, such as Delhi-Mumbai, could provide valuable insights into the necessary specifications for e-bus deployment.

    Conclusion: The future of India’s e-bus initiative depends on a united effort between government bodies and private stakeholders to create an inclusive framework that fosters growth and innovation in the electric mobility sector.

  • Sustainability science for FMCGs

    Why in the News?

    India’s Anusandhan National Research Foundation and the BioE3 policy promote academia-industry collaboration, driving the bioeconomy for economic growth, sustainability, and climate action commitment.

    What is BioE3 policy? 

    The BioE3 policy aims to transform chemical industries into sustainable bio-based models, promoting biotechnology to drive economic growth, protect the environment, and create jobs, supporting India’s sustainable development and climate goals.

    Primary Environmental impacts associated with FMCG production and consumption:

    • Resource Depletion: The production of FMCGs often requires significant natural resources, such as water, energy, and raw materials. For example, palm oil, widely used in food and personal care products, leads to deforestation when forests are cleared for plantations.
    • Greenhouse Gas Emissions: The manufacturing and distribution of FMCGs contribute to greenhouse gas emissions at multiple stages, from sourcing raw materials to production processes and transportation.
    • Waste Generation: FMCGs, especially those with single-use packaging (e.g., plastics), generate a considerable amount of waste, which ends up in landfills or the ocean, causing environmental pollution.
    • Water Pollution: The production and use of FMCGs, such as soaps, detergents, and other chemicals, can lead to water pollution through the discharge of untreated wastewater containing harmful substances.
    • Loss of Biodiversity: The agricultural practices used to source raw materials like palm oil can lead to habitat destruction, thereby threatening biodiversity. Monoculture farming and deforestation disrupt ecosystems and endanger wildlife.

    How can FMCG companies implement sustainable practices across their supply chains?

    • Companies should adopt responsible sourcing policies, such as using certified sustainable palm oil and other raw materials that adhere to ‘No Deforestation, No Peat’ policies.
    • Implementing energy-efficient processes, switching to renewable energy sources, and optimizing logistics to reduce emissions can minimize the carbon footprint across the supply chain.
    • Emphasizing recycling, reusing materials, and developing biodegradable or compostable packaging can help reduce waste and resource depletion.
    • The integration of bio-based or synthetic alternatives to traditional materials can also be beneficial.
    • Companies should implement measures to reduce water usage in manufacturing and treat wastewater to prevent water pollution.
    • Working with smallholder farmers to implement regenerative agricultural practices can help restore soil health, improve biodiversity, and support sustainable livelihoods.

    What metrics should be used to measure the effectiveness of sustainability initiatives in FMCGs?

    • Carbon Footprint Reduction: Tracking greenhouse gas emissions across the supply chain and setting targets for reducing Scope 1, 2, and 3 emissions.
    • Sustainable Sourcing Percentage: Measuring the proportion of raw materials sourced sustainably, such as certified palm oil or recycled materials.
    • Waste Reduction and Recycling Rates: Monitoring the volume of waste generated, the amount sent to landfills, and the recycling rate of packaging materials.
    • Water Usage and Pollution Levels: Tracking water consumption in production and measuring the quality of wastewater discharged to ensure compliance with environmental standards.
    • Biodiversity Impact: Assessing the effect of sourcing practices on ecosystems and tracking initiatives to protect or restore biodiversity.
    • Product Sustainability Index: Developing a sustainability index for products that takes into account their entire life cycle, from raw material extraction to end-of-life disposal.

    Way forward: 

    • Strengthen Collaboration and Innovation: Foster partnerships between academia, industry, and government to drive research and development of sustainable alternatives to traditional materials, such as palm oil, and implement innovative practices throughout the FMCG supply chain.
    • Implement Comprehensive Sustainability Frameworks: Establish regulatory frameworks that incentivize sustainable practices, including mandatory reporting on sustainability metrics, eco-labelling for products, and support for circular economy initiatives to minimize waste and resource depletion.
  • Fair Trade 

    Why in the News?

    In preparation for the 29th edition of the COP in Baku, Azerbaijan, next month, there is renewed momentum within government circles to expedite the transition of Indian industry to carbon markets.

    What is meant by the Carbon Trade Policy?

    • It is a market-based approach to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
    • It sets a quantitative limit on emissions, by allowing member countries with lower emissions to sell rights to emit carbon to higher-emitting entities, promoting cost-effective carbon reduction.

    Why India must develop a transparent Carbon Trade Policy?

    • A clear and transparent policy will boost investor confidence, attracting both domestic and foreign investments in green technologies and carbon-reduction projects.
    • Establishing robust verification and reporting mechanisms will enhance the integrity of carbon credits, preventing issues like double counting and greenwashing, and fostering trust among stakeholders.
    • A transparent policy will help align India’s efforts with global climate commitments, enabling effective tracking of emissions reductions and promoting sustainable economic growth.

    How effective is ‘Fair Trade’ in achieving its Goals?

    • Promotion of Sustainable Practices: Just as Fair Trade supports environmentally sustainable agriculture practices, carbon markets incentivize companies to adopt greener technologies and reduce emissions. Both aim to create a more sustainable future.
    • Empowerment of Stakeholders: Fair Trade empowers marginalized producers by providing fair prices and market access, similar to how carbon markets can benefit developing countries like India by enabling them to sell carbon credits generated from emissions reductions.
    • Economic Benefits: Fair Trade aims to create economic stability for producers, while carbon markets can generate revenue for countries that invest in carbon-reduction projects, creating a financial incentive for participating in emissions trading.
    • Global Impact Awareness: Both Fair Trade and carbon markets raise awareness about global issues—Fair Trade regarding trade equity and carbon markets regarding climate change, fostering a sense of responsibility among consumers and companies.

    What are the limitations and challenges facing Fair Trade certification?

    • Certification Costs: The financial burden of obtaining Fair Trade certification can be a significant barrier for small producers. Similarly, transitioning to carbon markets may involve high initial costs for companies to implement the necessary technologies and processes.
    • Market Accessibility: Fair Trade products may not have guaranteed market access, mirroring potential challenges in carbon markets where the demand for carbon credits may fluctuate based on regulations and market conditions.
    • Complex Standards: Just as Fair Trade certification has varying standards, the guidelines under Article 6 of the Paris Agreement can also lead to confusion about which carbon-reduction activities are eligible for trading.

    How can consumers effectively support Fair Trade initiatives?

    • Support Certified Products: Consumers can choose Fair Trade products, which, like carbon credits, require a conscious decision to support ethical and sustainable practices.
    • Educate and Advocate: Just as consumers can promote Fair Trade awareness, they can also advocate for transparent carbon markets and support policies that foster sustainable practices.
    • Engagement with Companies: Consumers can encourage businesses to participate in Fair Trade and carbon markets by demanding accountability and sustainability in their supply chains.
    • Community Participation: Involvement in local Fair Trade events can parallel participation in climate action initiatives, such as local carbon offset programs or sustainability projects, thereby supporting both movements.
    • Utilizing Social Media: Consumers can leverage social media to share information about Fair Trade and carbon markets, helping to amplify their importance and drive consumer engagement.

    Way forward: 

    • Strengthen Certification Accessibility: Lower the cost and simplify the certification process to make Fair Trade more accessible for small-scale producers, boosting their participation and benefits.
    • Enhance Consumer Education: Increase awareness campaigns about the impact of Fair Trade, encouraging more people to support certified products and promoting ethical consumption habits.
  • 21st National Livestock Census 2024, begins

    Why in the News?

    The Centre has launched the 21st National Livestock Census (LC), the five-yearly exercise of counting the country’s livestock.

    Innovations in the 21st Livestock Census:

    • For the first time, data collection is being done via a mobile app, enhancing accuracy and timeliness.
    • The census will cover 15 species of animals (excluding poultry) such as cattle, buffalo, mithun, yak, sheep, goat, pig, camel, horse, donkey, and elephant.
    • Information on 219 Indigenous breeds and livestock holdings by pastoralists will also be recorded, along with data on the gender of individuals involved in livestock rearing.

    About Livestock Census (LC)

    • The Livestock Census (LC) is a nationwide survey conducted every 5 years to count all domesticated animals across households, enterprises, and institutions in rural and urban areas.
      • The National Livestock Census provides detailed data on the population, breeds, and distribution of livestock like cattle, buffalo, goats, sheep, pigs, and others.
    • Conducted by the Ministry of Animal Husbandry and Dairying in collaboration with State/UT governments since 1919.
    • The 21st Livestock Census (2024) is the latest in the series and includes data collected using a dedicated mobile app for improved accuracy and real-time monitoring.

    Significance of the Livestock Census:

    • Policy Formulation: Helps the government develop policies for livestock sector growth, covering aspects like breed improvement, disease control, and feed management.
    • Rural Economy Support: Provides insights into the role of livestock in enhancing rural incomes, nutrition, and employment.
    • Livestock Development Programs: Data supports initiatives like the National Livestock Mission (NLM), which focuses on breed development, feed and fodder improvement, and innovation in livestock practices.
    • Indigenous Breed Conservation: Tracks indigenous livestock breeds to support breed-specific conservation and sustainable practices.

    Previous Census Observations in India:

    [1] 20th Livestock Census (2019):

    • Total Livestock Population: Recorded at 535.78 million, marking a 4.6% increase from the previous census in 2012.
    • Bovine Population: Counted at 302.79 million (includes cattle, buffalo, mithun, and yak).
    • Indigenous vs. Exotic Breeds:
      • Indigenous cattle population declined by 6%, indicating a shift toward crossbred and exotic breeds.
      • Exotic and crossbred cattle increased by 29.3%, driven by rising demand for high milk-yielding breeds.
    • Buffalo Population: Increased by 1% to 109.85 million, contributing significantly to India’s milk production.
    • Sheep and Goat Populations:
      • Sheep population rose by 14.1%, reaching 74.26 million.
      • Goat population grew by 10.1%, totaling 148.88 million.
    • Poultry Population: Experienced a substantial growth of 16.8%, with a total of 851.81 million birds, reflecting the expansion of commercial poultry farming.
    • Female Livestock Population: Increase in female cattle (18%) and female buffaloes (8%), underscoring the focus on dairy production.

    [2] 19th Livestock Census (2012):

    • Highlighted an increase in buffalo populations and decline in indigenous cattle.
    • Marked significant growth in poultry numbers, reflecting changing agricultural and economic patterns.

    PYQ:

    [2015] Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India.

    [2012] Which of the following is the chief characteristic of ‘mixed farming’?
    (a) Cultivation of both cash crops and food crops
    (b) Cultivation of two or more crops in the same field
    (c) Rearing of animals and cultivation of crops together
    (d) None of the above

  • Bihar gets its first Dry Port in Bihta

    Why in the News?

    • Bihar has inaugurated the state’s first dry port in Bihta, a town near Patna to boost the export of goods produced in Bihar.
      • The first export consignment from the Bihta ICD was leather shoes sent to Russia.

    What is it?

    • A dry port, also known as an inland container depot (ICD), is a logistics facility located away from a seaport or airport.
    • It provides facilities for cargo handling, storage, and transportation of goods, making it easier to manage exports and imports.
    • The first dry port in India was opened in Varanasi in 2018.
    • The dry port also acts as a bridge between the inland regions and international shipping routes through major gateway ports.

    About Bihta ICD

    • The Bihta Inland Container Depot (ICD), also known as Bihta dry port, is located in Bihta, a town near Patna, the capital of Bihar.
    • It operates under a Public-Private Partnership (PPP).
    • It is fully commissioned and approved by the Department of Revenue, under the Union Ministry of Finance.
    • It is managed by Pristine Magadh Infrastructure Private Limited in collaboration with the Bihar state industry department.
    • The Bihta ICD is well connected by railways to gateway ports across India, including:
      • Kolkata and Haldia in West Bengal.
      • Visakhapatnam in Andhra Pradesh.
      • Nhava Sheva in Maharashtra.
      • Mundra in Gujarat.
    • It supports transportation of goods to and from eastern India, benefitting not just Bihar but also neighboring states like Jharkhand, Uttar Pradesh, and Odisha.

    PYQ:

    [2023] Consider the following pairs:

    Port Well known as
    1. Kamarajar Port: First major port in India registered as a company
    2. Mundra Port: Largest privately owned port in India
    3. Visakhapatnam Port: Largest container port in India

    How many of the above pairs are correctly matched?

    (a) Only one pair
    (b) Only two pairs
    (c) All three pairs
    (d) None of the pairs

  • Z-Morh Tunnel Project

    Why in the News?

    Some militants attacked workers building the Z-Morh tunnel on the Srinagar-Sonamarg highway, killing seven people.

    What is the Z-Morh Tunnel?

    • The Z-Morh tunnel is a 6.4-kilometer tunnel located near Gagangir village, connecting the Sonamarg health resort to Kangan town in the Ganderbal district of central Kashmir.
      • It is part of the larger Zojila tunnel project, which aims to provide year-round road connectivity between Srinagar and Ladakh.
    • It is part of the Srinagar-Sonamarg-Leh highway.
    • It is being constructed at an altitude of over 8,500 feet.
    • It derives its name from the Z-shaped road stretch where it is being built.
    • The project was originally conceived by the Border Roads Organisation (BRO) in 2012.
    • A soft opening of the tunnel was held in February 2024, although the full inauguration has been delayed.

    Significance of the Z-Morh Tunnel

    • The tunnel provides all-weather road connectivity to the Sonamarg health resort, ensuring that the popular tourist destination remains accessible year-round.
    • It is essential for maintaining all-weather connectivity to Ladakh, a region of strategic importance for India, particularly due to the military presence along the border with Pakistan and China.
    • The tunnel is strategically important for the Indian Army, as it provides quick and safe access to forward areas in Ladakh, reducing the dependence on air transport for the movement of troops and supplies.
    • It will also reduce expenditure on air maintenance of forward locations, thereby increasing the lifespan of Indian Air Force aircraft.
    • The tunnel will boost economic growth by improving accessibility to Sonamarg, thereby supporting tourism in the region.

    PYQ:

    [2016] Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management.

  • [pib] Government extends SAMARTH Scheme till March 2026

    Why in the News?

    The Samarth Scheme (Scheme for Capacity Building in Textiles Sector), which aims to teach 300,000 people in textile-related skills, has been extended for two years (FY 2024–25 and 2025–26).

    Achievements of the SAMARTH Scheme:

    • So far, 3.27 lakh candidates have been trained under the Samarth Scheme, with 2.6 lakh (79.5%) of them gaining employment.
    • There is a strong focus on women’s employment, with 2.89 lakh (88.3%) women trained so far.

    What is ‘SAMARTH’ Scheme?

    Details
    Name Samarth (Scheme for Capacity Building in Textile Sector)
    Nodal Ministry Ministry of Textiles
    Approval Approved by the Cabinet Committee of Economic Affairs as a continuation of the Integrated Skill Development Scheme for the 12th Five Year Plan (FYP)
    Implementing Agency Office of the Development Commissioner (Handicrafts)
    Objectives • Provide demand-driven, placement-oriented skilling programs
    • Incentivize industry efforts to create jobs in organized textile and related sectors
    • Promote skilling and skill upgradation in traditional sectors
    Scope Covers the entire textile value chain, excluding spinning and weaving
    Special Provisions Includes upskilling and reskilling programs to improve productivity of existing workers in the apparel and garmenting segments
    Target Beneficiaries Handicraft artisans and individuals seeking employment in the textile sector
    Implementing Agencies • Textile Industry
    • Institutions/Organizations of the Ministry of Textiles/State Governments with training infrastructure
    • Reputed training institutions/NGOs/Trusts/Companies with placement tie-ups

     

    PYQ:

    [2020] Consider the following statements:

    1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
    2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
    3. In the last five years, Nepal has been the largest trading partner of India in South Asia.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only
    (b) 2 only
    (c) 3 only
    (d) 1, 2 and 3