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Subject: Economics

  • Spotlighting the work of the Economics Nobel winners

    Why in the News?

    • This year’s Nobel Prize in Economics, officially known as the Sveriges Riksbank Prize in Economic Sciences, was awarded to Daron Acemoglu, Simon Johnson, and James Robinson (AJR).  
    • AJR have highlighted the importance of institutions in development, but critics argue that this approach tends to favour Western liberal models over other institutional frameworks.

    Why Do Some Nations Succeed While Others Fail?

    • Role of Institutions: The economic success or failure of nations can often be traced back to the nature of their institutions. 
      • Inclusive institutions encourage economic activity by providing secure property rights, legal frameworks, and political systems that incentivize growth. 
      • In contrast, extractive institutions concentrate wealth and power in the hands of a few, leading to economic stagnation and social inequality.
    • Historical Path Dependence: Countries that experienced inclusive economic institutions early in their development tend to be more prosperous, while those with a history of extractive institutions face significant barriers to growth. Historical events shape the trajectory of institutional development and influence current outcomes.

    What Is the Impact of Historical Institutions on Current Economic Outcomes?

    • Colonial Legacy: Institutions established during colonialism, especially extractive ones, have long-lasting impacts. Areas with landlord-based land tenure systems or direct colonial rule have struggled with lower agricultural productivity, fewer social services, and weaker infrastructure.
    • Natural Experiment Evidence: AJR’s research used historical data, such as differences in settler mortality, to show that regions colonized by Europeans with high mortality rates ended up with extractive institutions that still negatively affect growth today.
    • Long-Term Development Patterns: The effects of historical institutions persist, shaping economic development, social structures, and governance even after countries gain independence or transition to new political systems.

    Why do critics argue that this approach tends to favour Western liberal models over other institutional frameworks?

    • Historical Bias: Critics argue that AJR’s approach overlooks the diverse paths of development, favoring Western institutions while underestimating non-Western experiences and historical complexities.
    • Western Norms as Universal: The framework tends to present Western liberal institutions as ideal models, disregarding how other systems might effectively function in different cultural and socio-political contexts.

    Why Are Inclusive Institutions Not More Widely Adopted?

    • Conflict of Interests: Powerful groups with control over resources have incentives to maintain extractive institutions to protect their wealth and power, resisting changes that would lead to a fairer distribution of economic benefits.
    • Collective Action Challenges: Reforming extractive institutions requires solving collective action problems where diverse groups must agree on new rules that may threaten the established elite’s interests.
    • Path Dependency: Historical conditions can create institutional inertia, making it challenging to shift from extractive to inclusive frameworks due to deep-rooted social, political, and economic norms.

    Way forward: 

    • Strengthen Inclusive Institutions: Focus on legal and policy reforms that secure property rights, ensure fair governance, and promote transparent decision-making, encouraging broad-based economic participation and growth.
    • Empower Marginalized Groups: Implement policies that reduce power concentration by supporting grassroots movements, enhancing education access, and providing economic opportunities to disadvantaged communities to overcome historical inequalities.

  • HAL becomes 14th Maharatna Company in India

    Why in the News?

    The Centre has upgraded the status of PSU Hindustan Aeronautics Ltd (HAL) as Maharatna Company (from earlier Navratna Status).

    About Hindustan Aeronautics Limited (HAL): Key Facts

    • HAL was founded in 1940 in Bangalore as Hindustan Aircraft Limited, merging with Aeronautics India Limited in 1964 to become HAL.
    • It is a state-owned company under the Ministry of Defence.
    • Headquarters are in Bengaluru, Karnataka.
    • Operates 20 production and R&D centers across India, including Bangalore, Nashik, Koraput, and Lucknow.
    • Focuses on design, development, manufacture, and maintenance of aircraft, helicopters, engines, avionics, and aerospace equipment.
    • Produces fighter aircraft like Tejas LCA, Sukhoi Su-30MKI, Jaguar, and Hawk.
      • Manufactures helicopters including Dhruv ALH, Rudra, Cheetah, Chetak, and LCH.
    • Collaborates with Boeing, Airbus, Rosoboronexport, and Safran on aircraft production and tech transfer.
    • Listed on BSE and NSE in 2018, allowing public investment.
    • Expanded exports, supplying aircraft and helicopter parts to countries like Vietnam, Mauritius, and Ecuador.
      • Recent projects include AMCA, IMRH, and Tejas Mk2, boosting India’s indigenous defense capabilities.

    About Maharatna Companies 

    Details
    What is it? • Recognition granted to select Public Sector Undertakings (PSUs) in India.
    • Provides greater financial and operational autonomy compared to Navratna and Miniratna PSUs.
    Eligibility • Annual Turnover: Over ₹25,000 crore in the last three years.
    • Net Worth: More than ₹15,000 crore over the last three years.
    • Net Profit: Minimum of ₹5,000 crore for three consecutive years.
    • Must have significant global operations or international presence.
    Autonomy • Can invest up to ₹5,000 crore or 15% of their net worth in a single project without government approval.
    • Authorized to make equity investments for strategic resources or collaborations in India and abroad.
    Purpose • Aims to foster more flexibility in operations and encourage expansion, especially in international markets.
    • Helps companies to become global players.
    Examples • Indian Oil Corporation (IOC)
    • Bharat Petroleum Corporation Limited (BPCL)
    • Steel Authority of India Limited (SAIL)
    • Oil and Natural Gas Corporation (ONGC)
    Significance • Enhances the ability of PSUs to compete globally.
    • Allows quicker decision-making and reduces bureaucratic hurdles.
    • Promotes growth and competitiveness in the international arena.

    Benefits of Maharatna Status for HAL

    • HAL can now invest up to ₹5,000 crore (from earlier ₹1000 cr) or 15% of its net worth (whichever is applicable) in a single project without needing government approval.
    • As a Maharatna company, HAL has the freedom to engage in mergers, acquisitions, and strategic investments, both domestically and internationally.

    PYQ:

    [2011] Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

    1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.

    2. The Government no longer intends to retain the management control of the CPSEs.

    Which of the statements given above is/ are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • ‘Yield’ can’t be the sole indicator for agriculture

    Why in the News?

    Government must embrace a new approach where the success of agriculture is defined by its capacity to nourish people, support livelihoods, and safeguard our planet for future generations.

    What are the limitations of using yield as the sole indicator of agricultural success?

    • Nutritional Quality Neglect as per ICAR (Indian Council for Agricultural Research): Focusing on yield has led to a decline in the nutritional profile of crops. High-yielding varieties often have lower micronutrient densities, as seen in reduced zinc and iron levels in rice and wheat.
    • Increased Input Costs: Higher yield does not always correlate with increased farmer income. The cost of achieving additional yield may be high, especially as the response to fertilizers has declined significantly since the 1970s.
    • Biodiversity Loss: The emphasis on a few high-yielding varieties leads to the loss of diverse, local crop varieties. For example, India has lost around 104,000 rice varieties since the Green Revolution.
    • Environmental Impact: Intensive farming to maximize yield can degrade soil health, reduce water availability, and harm the ecosystem, making agriculture less sustainable.
    • Reduced Resilience: The prioritization of yield over other factors makes crops less resilient to extreme weather events such as floods, droughts, and heatwaves.

    How do other indicators complement yield in assessing agricultural sustainability?

    • Nutritional Output Per Hectare: This indicator measures not just the quantity but the quality of the food produced, addressing nutritional security.
    • Soil Health Metrics: Including soil biological activity and soil organic carbon in evaluations helps ensure long-term soil fertility and productivity.
    • Water-Use Efficiency: Metrics like water-use efficiency track the amount of water required to produce crops, promoting conservation.
    • Farm Biodiversity: Assessing crop diversity at the farm and regional levels (Landscape Diversity Score) improves resilience to pests, diseases, and climate variability.
    • Economic Resilience Metrics: Indicators such as income diversification (through intercropping, livestock rearing, etc.) can help measure farmers’ economic stability.
    • Environmental Impact Measures: Tracking parameters like carbon footprint and ecosystem services evaluates the broader impact of agricultural practices.

    What practices can farmers adopt to improve sustainability beyond just increasing yield? (Way forward)

    • Intercropping: Growing multiple crops together (e.g., sugarcane with vegetables) can provide year-round income and enhance soil health.
    • Agroecological Approaches: Practices such as crop rotation, organic farming, and reduced pesticide use help maintain biodiversity and soil fertility.
    • Water Management Techniques: Using methods like drip irrigation and AI-powered tools for optimal irrigation ensures better water use.
    • Integrated Pest Management (IPM): Combining biological, mechanical, and chemical control methods reduces reliance on harmful pesticides.
    • Conservation Agriculture: Techniques such as no-till farming and mulching help improve soil structure and retain moisture.
    • Adopting Climate-Resilient Varieties: Growing drought-tolerant or flood-resistant crop varieties helps mitigate the impacts of climate change.

    Mains PYQ:

    Q Discuss the various economic and socio-cultural forces that are driving increasing feminization of agriculture in India. (UPSC IAS/2014)

  • Nobel Prize in Economics, 2024

    Why in the News?

    The Nobel Memorial Prize in Economics for 2024 was awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for their research into why some nations are more prosperous than others.

    What is the Nobel Economics Prize?  

    • Officially called the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, established in 1968.
    • It is not part of the original Nobel Prizes created by Alfred Nobel in 1895.
    • Created by the Swedish central bank to honor Alfred Nobel’s legacy.
    • Although not an original Nobel Prize, it is presented alongside the other Nobel Prizes on December 10, the anniversary of Nobel’s death.
    • Includes a diploma, gold medal, and a one-million-dollar prize for the laureates.

    This Year’s Nobel for Economics:

    • The 2024 Nobel awardees’ research focused on the role of societal institutions in determining a country’s economic prosperity.
    • The laureates distinguished between inclusive institutions, which promote democracy, rule of law, and protection of property rights, and extractive institutions, where power is concentrated and resources are exploited for the benefit of a few.
    • Their study explains how inclusive institutions foster long-term economic growth by providing stability and incentives, while extractive institutions undermine growth by discouraging investment and innovation.
    • The researchers also explored how European colonization shaped current economic disparities by establishing either inclusive or extractive institutions, with decisions influenced by factors such as mortality risks during colonization.

    Significance of the study

    • The study highlights the critical role of societal institutions in determining a country’s prosperity.
    • It distinguishes between inclusive institutions that foster growth and extractive institutions that hinder it.
    • It explains how colonial history shaped modern economic disparities.
    • The research offers policy insights for building inclusive institutions to promote long-term prosperity.
    • It has global implications for reducing inequality and promoting sustainable development.

    PYQ:

    [2019] The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its new found role in the emerging global order.’ Elaborate.

  • NABARD Survey on Rural Financial Inclusion

    Why in the News?

    The National Bank for Agriculture and Rural Development (NABARD) has published findings from its second All India Rural Financial Inclusion Survey (NAFIS) 2021-22.

    About the NAFIS 2021-22

    • The survey gathered primary data from 1 lakh rural households across 28 states and Union Territories of Jammu & Kashmir and Ladakh.
    • The first NAFIS survey was conducted for the agricultural year 2016-17, with results released in 2018.
    • This survey provides valuable information on rural economic and financial indicators, especially in the post-COVID period.

     

    Key Highlights from NAFIS 2021-22:

    Details
    1. Increase in Average Monthly Income • Average monthly income increased by 57.6% from Rs. 8,059 in 2016-17 to Rs. 12,698 in 2021-22, indicating a nominal CAGR of 9.5%.
    • Agricultural households earned slightly more, with an average income of Rs. 13,661, compared to Rs. 11,438 for non-agricultural households.
    • Salaried employment was the largest income source for all households, accounting for approximately 37% of total income.
    • For agricultural households, cultivation was the main income source, contributing about one-third of their monthly earnings.
    • For non-agricultural households, government/private services contributed 57% of the total household income.
    2. Rise in Average Monthly Expenditure • Average monthly expenditure increased from Rs. 6,646 in 2016-17 to Rs. 11,262 in 2021-22.
    • Agricultural households had higher expenditure at Rs. 11,710, compared to Rs. 10,675 for non-agricultural households.
    • In states like Goa and Jammu & Kashmir, monthly household expenditure exceeded Rs. 17,000.
    • Overall, agricultural households demonstrated both higher income and expenditure levels than non-agricultural households.
    3. Increase in Financial Savings • Annual average financial savings rose to Rs. 13,209 in 2021-22 from Rs. 9,104 in 2016-17.
    • 66% of households reported saving money in 2021-22, up from 50.6% in 2016-17.
    • 71% of agricultural households reported savings, compared to 58% of non-agricultural households.
    • States with 70% or more households saving money include Uttarakhand (93%), Uttar Pradesh (84%), and Jharkhand (83%).
    • States with less than half of households reporting savings are Goa (29%), Kerala (35%), Mizoram (35%), Gujarat (37%), Maharashtra (40%), and Tripura (46%).
    4. Kisan Credit Card (KCC) Usage • 44% of agricultural households possessed a valid Kisan Credit Card (KCC).
    • Among those with land holdings greater than 0.4 hectares or who had taken agricultural loans from banks in the past year, 77% had a valid KCC.
    5. Insurance Coverage • Households with at least one member covered by any form of insurance increased from 25.5% in 2016-17 to 80.3% in 2021-22.
    • 80.3% means that four out of every five households had at least one insured member.
    • Agricultural households had higher insurance coverage than non-agricultural households by about 13 percentage points.
    • Vehicle insurance was the most prevalent, with 55% of households covered.
    • Life insurance coverage extended to 24% of households, with agricultural households showing slightly higher penetration (26%) compared to non-agricultural ones (20%).
    6. Pension Coverage • Households with at least one member receiving any form of pension increased from 18.9% in 2016-17 to 23.5% in 2021-22.
    • Overall, 54% of households with at least one member over 60 years old reported receiving a pension.
    • Pensions included old age, family, retirement, or disability pensions, highlighting their importance in supporting elderly members of society.
    7. Financial Literacy • Respondents demonstrating good financial literacy increased from 33.9% in 2016-17 to 51.3% in 2021-22, a rise of 17% points.
    • Individuals exhibiting sound financial behavior increased from 56.4% to 72.8% during the same period.
    • When assessed on financial knowledge, 58% of rural respondents and 66% of semi-urban respondents answered all questions correctly.

    Key aspects that contribute to Rural Empowerment

    • The survey shows significant progress in rural financial inclusion since the first survey in 2016-17.
    • Rural households have seen improvements in income, savings, insurance coverage, and financial literacy.
    • Government schemes like Pradhan Mantri Kisan Samman Nidhi, MGNREGS, and PMAY-G have contributed to the improvement in the lives of rural people.

    PYQ:

    [2015] Pradhan Mantri Jan-Dhan Yojana was launched by the Prime Minister of India Narendra Modi on 28 August 2014. What is the main objective of the scheme?

    (a) To provide housing loan to poor people at cheaper interest rates

    (b) To promote women’s Self Help Groups in backward areas

    (c) To promote financial inclusion in the country

    (d) To provide financial help to marginalised communities

  • What is the Samsung worker’s strike in Chennai about?

    Why in the News?

    Approximately two-thirds of workers at Samsung’s flagship factory in Chennai have been on strike for a month, demanding higher wages, an eight-hour workday, improved conditions, and union recognition.

    What are the main demands of the striking workers?

    • Higher Wages: Workers are demanding increased salaries to improve their financial conditions.
    • Eight-Hour Work Day: The employees seek the implementation of an eight-hour workday to ensure better work-life balance.
    • Better Working Conditions: Strikers are advocating for improved health and safety standards in the workplace.
    • Recognition of Labour Union: The workers want formal acknowledgment of their recently formed union, the Samsung India Workers Union (SIWU).

    What is Samsung’s union policy?

    • Historically, Samsung has maintained a strict no-union policy for over 80 years, resisting any collective bargaining efforts by employees.
    • In July 2021, the company began to recognize unions after successful negotiations at Samsung Display and Samsung Electronics, allowing for some degree of collective bargaining.
    • Samsung now has various unions representing its workforce globally, with significant representation in South Korea.

    Why was SIWU unrecognised? 

    • Registration Challenges: SIWU’s registration has been opposed by Samsung management, citing trademark violations due to the use of the name “Samsung” in the union’s title.
    • Legal Precedents: SIWU argues that trademark issues should not apply, as their activities do not involve commercial undertakings that could infringe on the trademark.
    • Pending Legal Review: The case regarding SIWU’s registration is pending further court hearings, with the government examining objections raised by the management.

    What has been the govt.’s response?

    • Indifferent Stance: SIWU and the Centre of Indian Trade Unions (CITU) have accused the Tamil Nadu government of being indifferent and supportive of Samsung management, which the government denies.
    • Support for Workers’ Rights: The government claims it considers the registration application in light of Samsung’s objections and aims to ensure fair treatment of both workers and management.
    • CITU’s Position: Union leaders assert that government intervention in favor of management undermines the rights of workers and can deter unionization efforts, despite evidence showing that unions can benefit both employees and companies.

    Present Legislation in India:

    • Notice Period and Conditions for Strikes: Under the Industrial Relations Code, 2020, workers must provide a 14-day notice before striking, which cannot exceed a maximum of 60 days.
    • Strike definition: The definition of a strike now includes “mass casual leave,” where over 50% of employees taking leave can be classified as a strike.
    • Increased Flexibility for Employers: The code has increased the threshold for layoffs from 100 to 300 workers, allowing companies to lay off employees without government approval.
    • This change aims to give employers greater flexibility in managing their workforce, which has raised concerns among labor unions about job security and workers’ rights.

    Way forward: 

    • Facilitate Dialogue and Mediation: Establish a formal dialogue between the workers, Samsung management, and government representatives to address grievances, negotiate demands, and work towards a mutually beneficial agreement.
    • Strengthen Legal Framework for Union Recognition: Amend or clarify existing labor laws to ensure timely and transparent registration processes for unions, protecting their rights and enabling effective collective bargaining.

  • Fairwork India report highlights the absence of local living wage for gig workers, aggregators turning their back to collectivization

    Why in the News?

    The ‘Fairwork India Ratings 2024’ highlights that platform aggregators in India fail to ensure local living wages and resist recognizing the collective rights of workers.

    Who are the Gig Workers?

    • Gig workers are individuals who take up short-term, flexible work assignments, typically managed via digital platforms. In the Indian context, gig workers operate in various sectors such as food delivery, ride-hailing, logistics, and personal/domestic care services. 
    • These workers are not considered employees in the traditional sense and often lack the benefits associated with full-time employment, such as job security, healthcare, and social protection.
    • Examples of platforms using gig workers include Swiggy, Zomato (food delivery) Uber, Ola (transportation), etc.

    Key highlights as per the report: 

    • No Platform Scored Perfectly: No digital labor platform scored more than 6 out of 10 points, and none met all criteria across the five principles — Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation.
    • Fair Pay: Only BigBasket and Urban Company ensured a minimum wage, but no platform met the criteria for guaranteeing a living wage after work-related costs.
    • Fair Conditions: Several platforms (e.g., Amazon Flex, Swiggy, Zepto) provided safety equipment and training, but only a few offered comprehensive accident insurance and income loss compensation.
    • Fair Contracts: BigBasket, Swiggy, and others made contracts accessible and comprehensible, and provided data protection for workers.
    • Fair Management: Platforms like BluSmart and Zomato implemented processes for addressing grievances and preventing discrimination.

    Present Status of Gig Economy  in India:

    • Growth of the Gig Economy: India is witnessing rapid growth in the gig economy, with millions of workers depending on digital platforms for their livelihoods.
      • The rise of app-based platforms such as Uber, Zomato, and Urban Company has driven the expansion of gig work across urban areas.
    • Government Focus: Recent years have seen increasing political and legislative attention to gig worker welfare. Karnataka and Jharkhand are examples of states that have proposed new legislation to regulate platform work and protect gig workers’ rights.
    • Worker Conditions: Despite the expansion of gig work, platforms in India still lag in ensuring fair pay, safety, and management of gig workers.
      • The Fairwork India Ratings 2024 reveal that no platform scored above 6 out of 10, signaling considerable gaps in adhering to key labor standards.

    Challenges faced by the Gig Economy

    • Low Wages and Unstable Earnings: Many platforms fail to ensure a local living wage for workers after accounting for work-related costs. Only a few platforms like Bigbasket and Urban Company guarantee the local minimum wage, but none meet the standard of ensuring a living wage.
    • Lack of Social Security and Benefits: Most gig workers lack access to benefits such as healthcare, insurance, and paid leave. While a few platforms provide accident insurance, broader social security protections remain elusive.
    • Poor Working Conditions: Platforms often do not ensure adequate safety training or measures. While some like Swiggy, Zomato, and Zepto offer basic safety equipment and training, broader protections, especially in terms of income loss and sick leave, are limited.
    • Inflexible Contracts: Contracts on platforms are frequently unclear, lengthy, and not always comprehensible for workers, making it difficult for them to fully understand their rights and obligations.
    • Management Issues and Bias: Workers face arbitrary decisions and discipline without proper recourse. Though some platforms have mechanisms for workers to appeal decisions, few have adopted policies to ensure fairness in work allocation.
    • Collectivization Challenges: Platforms resist recognizing gig workers’ right to form unions or collective bodies. Despite the growing movement for gig worker collectivization, no platform showed evidence of supporting or acknowledging these efforts.

    Way forward: 

    • Strengthen Legal Protections and Social Security: Introduce comprehensive legislation ensuring gig workers receive fair wages, social security benefits like healthcare and insurance, and clear, comprehensible contracts.
    • Promote Worker Representation and Fair Management: Encourage platforms to recognize collective bodies of gig workers, ensuring their right to unionize. Implement transparent and bias-free management practices, along with grievance redressal mechanisms, to improve working conditions and fairness.

  • Why is the textile industry struggling to perform better?

    Why in the News?

    Union Minister announced the Indian textile sector’s $350 billion business target by 2030, aiming to generate 3.5 crore jobs, despite recent challenges affecting the projected 10% CAGR.

    Present Status:

    • The Indian textile and apparel industry is currently valued at $153 billion (2021), contributing significantly to India’s GDP (2.3%) and manufacturing GVA (10.6%).
    • The industry employs around 105 million people and is highly dependent on global markets, with 80% of its capacity in MSMEs.
    • India was the third largest textile exporter in FY22, but faced a slowdown in FY23 and FY24, with significant drops in exports and domestic demand.

    What caused the slump in the Indian textile sector in the last two financial years?

    • Geopolitical Tensions: Global geopolitical issues reduced demand in key export markets.
    • High Raw Material Prices: Cotton and Man-Made Fibre (MMF) prices surged, hurting competitiveness.
    • Import Duties: A 10% import duty on cotton made Indian cotton more expensive than global prices.
    • Supply Chain Disruptions: Quality control measures affected the availability and price stability of MMF, further straining production.

    What are the other challenges?

    • Evolving Business Models: The rise of e-commerce and direct-to-consumer retailing is reshaping traditional business systems in the textile industry.
    • Sustainability Standards: Global brands are increasingly focusing on ESG (Environmental, Social, and Governance) criteria, forcing Indian manufacturers to adopt sustainable practices.
    • Changing Consumer Preferences: Growing demand for comfort wear, athleisure, and multi-brand outlets is shifting consumer behavior, impacting smaller or less-known brands.
    • Labour Costs and Productivity: Labour constitutes 10% of production costs, and the industry faces pressure to improve productivity through technology adoption and workforce skilling.

    Way forward: 

    • Enhance Global Competitiveness: The government should consider reducing import duties on key raw materials like cotton and stabilize supply chains by aligning domestic prices with international markets, ensuring competitiveness in global exports.
    • Invest in Technology and Sustainability: The industry should focus on adopting advanced technologies to improve productivity and meet global ESG sustainability standards, while simultaneously upskilling the workforce to handle these technological advancements effectively.

  • [pib] ‘Humsafar Policy’ for Wayside Amenities along the National Highways

    Why in the News?

    The Ministry of Road Transport and Highways has launched the ‘Humsafar Policy’ in New Delhi to improve travel convenience on National Highways and boost the development of Wayside Amenities.

    About the ‘Humsafar Policy’

    • The Humsafar Policy is an initiative launched by the Ministry of Road Transport and Highways to enhance the convenience and experience of travelers on National Highways (NHs).
    • It focuses on developing Wayside Amenities along highways to provide a range of facilities for highway users, ensuring smooth, safe, and comfortable journeys.
    • The policy also emphasizes environmental sustainability by incorporating eco-friendly practices like water conservation, solar energy, and waste recycling.

    Features of the Humsafar Policy

    • Wayside Amenities: Includes food courts, fuel stations, EV charging stations, parking, toilets, ATMs, and pharmacies.
    • Standardized Facilities: Ensures well-maintained and hygienic services for commuters.
    • Visibility for Service Providers: Featured on the ‘Rajmarg Yatra’ app, with signage space and renewal fee waivers for high-rated providers.
    • Monitoring & Inspection: Regular third-party checks to maintain service quality, with alerts for low-rated facilities.
    • Green Focus: Encourages solar energy, water conservation, and waste recycling.

    Significance

    • Better User Experience: Enhances travel with high-quality facilities.
    • Economic Impact: Creates jobs and supports local communities.
    • Standardization: Ensures consistent quality and accountability.
    • Technological Integration: The ‘Rajmarg Yatra’ app gives real-time facility info and allows feedback from users.

  • How high-performance buildings are the next step towards a sustainable future?

    Why in the News?

    Due to rapid urbanization, India is facing the challenge of exceeding global energy efficiency and carbon benchmarks. High-performance buildings (HPBs) offer resilient, adaptive, and self-sufficient designs, promoting healthier indoor environments and better air quality.

    What are High-Performance Buildings (HPBs)?

    • These are structures designed to achieve peak levels of energy efficiency, sustainability, and occupant comfort.
    • They go beyond standard building practices by integrating advanced technologies and smart design strategies to minimize environmental impact, optimize resource use, and improve overall performance.
      • For example, Unnati (Greater Noida) and Indira Paryavaran Bhawan (New Delhi) showcase smart designs like sun-optimized facades and advanced HVAC systems, reducing energy use.

    Key features of HPBs include:

    • Energy Efficiency: HPBs use cutting-edge technologies like energy-efficient HVAC systems, smart lighting controls, and advanced insulation to reduce energy consumption.
    • Water Conservation: Techniques like greywater recycling and rainwater harvesting help HPBs minimize water usage.
    • Sustainable Materials: HPBs use eco-friendly, durable materials to reduce their carbon footprint and increase building longevity.
    • Site-Specific Design: HPBs leverage natural lighting, ventilation, and terrain-specific water management to enhance thermal efficiency and reduce energy demand.
    • Building Management Systems (BMS): HPBs employ BMS to monitor real-time performance metrics such as energy usage, water consumption, and indoor air quality, ensuring continuous optimization of resources.

    How can HPBs help Indian cities?

    • Resource Efficiency: HPBs help reduce energy consumption and promote water conservation, addressing India’s resource scarcity and fluctuating energy markets.
    • Urban Resilience: By being energy-efficient and self-sufficient, HPBs can help cities adapt to rising temperatures and urbanization pressures.
    • Healthier Environments: HPBs enhance indoor air quality, thermal comfort, and occupant well-being through intelligent systems like air filtration, natural lighting, and smart temperature control.
    • The strain on Infrastructure: HPBs can relieve pressure on public infrastructure by minimizing resource usage, making them crucial for fast-growing cities.
    • Sustainable Growth: HPBs are key to driving India’s transition to a low-carbon economy, supporting sustainable urbanization, and enhancing property value through long-term cost savings.

    Way Forward: 

    • Scaling Adoption of HPBs: Promote widespread implementation of HPBs through government incentives, regulations, and public-private partnerships, aligning with SDG Goal 11 (Sustainable Cities and Communities) to foster inclusive, safe, and resilient urban spaces.
    • Innovation and Capacity Building: Encourage innovation in building technologies and workforce training to develop HPBs, contributing to SDG Goal 7 (Affordable and Clean Energy) by ensuring energy efficiency and reducing carbon emissions in cities.