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Subject: Economics

  • The road to 2047 for Indian agriculture   

    Why in the News?

    India’s 100th independence anniversary in 2047 is approaching, and the goal to become ‘a developed nation’ has a significant focus.

    Goals of Indian Agriculture by Vision 2047:

    • Comprehensive Goal: India’s centennial year of independence requires a six-fold increase in per capita Gross National Income (GNI), emphasizing the need for comprehensive development, especially in agriculture.
    • Trade Goal: India’s agricultural and processed food exports have gone up to more than USD 50 billion in 2022-23.
      • The Vision 2047 aims to improve the availability of nutritious foods by enhancing the processing of fruits and vegetables, and augment the proportion of value-added products in India’s export portfolio.
    • Sustainable Goal: Transforming Indian agriculture will hinge on adopting sustainable practices such as precision farming, genetically modified crops, and advanced irrigation techniques (e.g., drip and sprinkler systems).

    Present starking Imbalance in the Indian Economy

    • Workforce vs. GDP Contribution: Despite agriculture engaging nearly 46% of the workforce, it contributes only about 18% to the GDP, revealing a significant imbalance.
    • Growth Disparity: While the overall GDP has grown at 6.1% annually since 1991-92, agricultural GDP has lagged at 3.3%. In the last decade (2013- 2023), overall GDP growth was 5.9%, with agriculture growing at 3.6%, which is insufficient for the sector’s socio-economic importance.
    • Future Projections: By 2047, agriculture’s share in GDP might shrink to 7%-8%, but it could still employ over 30% of the workforce, necessitating significant structural changes to avoid exacerbating the disparity.

    Government Initiatives:

    • For Water Management: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has promoted water-use efficiency through micro-irrigation, covering 78 lakh hectares with a ₹93,068 crore allocation for 2021-26.
    • For Risk Management: The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers financial assistance for crop losses, with 49.5 crore farmers enrolled and claims totalling over ₹1.45 lakh crore.
    • For Market Access: The Electronic National Agriculture Market (eNAM) integrates existing markets through an electronic platform, benefiting 1.76 million farmers and recording trade worth ₹2.88 lakh crore by September 2023.
    • For better Farmer Support: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, disbursing ₹6,000 annually to farmers, has benefited over 11.8 crore farmers.
    • For enhanced Soil Health: The Soil Health Card (SHC) scheme aims to optimize soil nutrient use, enhancing productivity, with over 23 crore SHCs distributed.

    Need for Strategic Planning

    • Population Growth: India’s population is projected to reach 1.5 billion by 2030 and 1.59 billion by 2040, increasing the demand for food by approximately 2.85% annually.
    • Future Demand: By 2047-48, food grain demand is projected to range from 402 million tonnes to 437 million tonnes, requiring sustainable production exceeding demand by 10%-13% under the Business-As-Usual scenario.

    Way Forward: 

    • Investment in R&D: To meet future demands sustainably, significant investments in agricultural research, infrastructure, and policy support are necessary.
    • Budget Allocation: The Budget for 2024-25 includes ₹20 lakh crore for targeted agricultural credit and the launch of the Agriculture Accelerator Fund, highlighting a proactive approach to fostering agricultural innovation and growth.
    • Enhance Digital Infrastructure: Support and expand digital platforms like eNAM to improve market access, provide real-time data, and facilitate better price realization for farmers.

    Mains PYQ: 

    Q Give the vulnerability of inidan agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)

  • Global Finance Central Banker Report Cards, 2024

    Why in the News?

    The Reserve Bank of India (RBI) Governor has been awarded an “A+” rating for the second consecutive year in the Global Finance Central Banker Report Cards 2024.

    About the Global Finance Central Banker Report Cards

    • The Central Banker Report Cards are published annually by Global Finance, a magazine that has been grading central bank governors since 1994.
    • The report grades the central bank governors of nearly 100 countries, territories, and districts, including major institutions like the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States, and the Central Bank of West African States.
    • Grading Scale:
      • The ratings range from “A+” for excellent performance to “F” for outright failure.
      • The grades assess success in key areas such as inflation control, economic growth, currency stability, and interest rate management.

    Significance 

    • This recognition highlights his exceptional performance in managing India’s monetary policy, particularly in areas such as inflation control, economic growth, currency stability, and interest rate management.

    PYQ:

    [2016] ‘Global Financial Stability Report’ is released by which organisation?

    (a) European Central Bank

    (b) International Monetary Fund

    (c) International Bank for Reconstruction and Development

    (d) Organisation for Economic Co-operation and Development

  • [21st August 2024] India’s Ethanol Blending Target: Progress, Challenges, and Regional Dynamics

    Why in the News? 

    India is on track to achieve its ambitious goal of blending 20% ethanol with petrol by 2025-26. While significant progress has been made in increasing ethanol production, the initiative is not without its challenges. The food versus fuel debate and concerns about fuel efficiency in existing vehicles continue to loom large over the ethanol economy.

    State of Ethanol Production in India

    • Dramatic Increase in Ethanol Blending: Ethanol blending percentage rose from 8% in 2021 to 13-15% in recent years. Significant progress indicates a strong push towards meeting the 20% blending target.
    • Substantial Investment in Production Capacity: The sugar industry has invested approximately ₹40,000 crore to boost ethanol production. This investment is key to increasing the country’s ethanol production capacity.
    • Nearing Production Targets: India is close to achieving its target of producing 1,380 crore litres of ethanol. Production contributions come from both sugarcane-based and grain-based distilleries.
    • Government Roadmap and NITI Aayog Projections: NITI Aayog’s roadmap called for a significant increase in ethanol production, with a focus on grain-based distilleries. By December 2023, nearly all ethanol capacity targets had been achieved. The expansion has primarily relied on sugarcane-based production.

    The Food vs. Fuel Debate & other Concerns

    • Food Security Concerns: The push for ethanol blending has raised alarms about its potential impact on food security. Increased use of food grains, particularly maize, for ethanol production is at the center of the concern.
    • Rising Maize Imports: Recent data shows an increase in maize imports from April to June this year.The rise is driven by higher demand for fuel ethanol and restrictions on using sugarcane products.
    • Price hike Concerns: Despite industry assurances of sufficient food stocks, the diversion of grains for ethanol production could lead to price hikes. Sectors like poultry, livestock feed, and starch production could be negatively affected.India’s maize yield is still below global averages, intensifying concerns about the strain on food supplies.
    • Water Usage Concerns: Expanding sugarcane production to meet ethanol targets has significant environmental implications, especially concerning water usage. Sustaining ethanol production from sugarcane may require an additional 400 billion litres of water.
    • Impact on Agricultural Sustainability: The increased water demand for sugarcane could divert irrigation resources from essential food crops. This diversion raises concerns about the long-term sustainability of agriculture in the region.
    • Competition for limited resources: Government policy supports using maize, surplus rice, and damaged grains for ethanol production. This approach could intensify competition for these resources, potentially impacting food availability.
    • Impact on Vehicle Efficiency: Ethanol has a lower energy content, which can reduce fuel efficiency in vehicles not designed for higher ethanol blends. A NITI Aayog report indicates that ethanol blending could decrease fuel efficiency by an average of 6% in such vehicles.

    The ongoing debate underscores the need to shift towards more sustainable 2G and 3G ethanol technologies. These advanced technologies have less impact on food security compared to 1G ethanol, which relies on food grains and sugarcane.

    Regional Variations in Ethanol Production and Policy

    Ethanol production and its economic impact vary widely across different Indian states, influenced by local economic priorities, agricultural practices, and policy frameworks.

    • Uttar Pradesh: As the largest contributor to India’s ethanol blending program, Uttar Pradesh is fully aligned with the central government’s ethanol mission. The state has reserved 25% of its ethanol production for Extra Neutral Alcohol (ENA), used in liquor production. However, the higher value of ethanol made from molasses, especially B-heavy molasses, has made fuel ethanol more attractive to distilleries.
    • Tamil Nadu: In Tamil Nadu, the lucrative liquor market dominates the ethanol economy, and fuel ethanol production has not gained as much traction. The state government controls the liquor market, and the high water requirements for sugarcane cultivation limit the expansion of ethanol production from this crop. There is also resistance to using rice for ethanol production due to its association with liquor.
    • Maharashtra: Maharashtra presents a different scenario, where ENA production for industrial uses, such as manufacturing and medicine, is more profitable than ethanol blending. However, there is potential for ethanol production to become more attractive if steady contracts for blending can be secured, reducing the need for additional processing after ensuring purity.

    Conclusion

    India’s ethanol blending program has made significant progress, but the challenges of balancing food security, agricultural sustainability, and vehicle efficiency must be carefully managed to ensure the initiative’s long-term success. The varying approaches and impacts across different states underscore the need for a balanced and inclusive strategy to achieve the national ethanol blending targets.

  • A ground plan for sustainable mass employment 

    Why in the News?

    The ambitious ₹2 lakh crore employment package aims to create 4.1 crore jobs, but evidence shows low wages and short-term skill programs hinder long-term sustainability.

    Low wages and short-term skill programs hinder long-term sustainability:

    • Low Wages Lead to Economic Insecurity: Low wages create economic insecurity for workers, making it difficult for them to meet basic needs. For instance, in the garment industry, there is a 48.5% gap between minimum wages and living wages in major garment-producing countries.
    • Short-Term Skill Programs Fail to Enhance Employability: Many short-term skill programs do not provide the depth of training needed for long-term employability. In India, for example, 75% of technical graduates and 90% of other graduates are considered unemployable, primarily due to a lack of practical skills and experience that employers seek.
    • Stagnation of Workforce Productivity: When workers are paid low wages, there is little incentive for them to enhance their skills or productivity. This stagnation is detrimental to both individual career growth and overall economic development.
    • Lack of Investment in Long-Term Skill Development: Low wages often correlate with limited investment in employee training and development.This is evident in the fact that only 15% of those trained under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) found jobs, indicating that short-term training initiatives are not effectively translating into sustainable employment outcomes.
    • Perpetuation of Poverty and Inequality: The combination of low wages and inadequate skill development contributes to the perpetuation of poverty and inequality. With 42% of the global workforce in vulnerable employment.

    12-point policy initiatives for sustainable mass employment:

    • Identify the skill need: Begin from below through decentralized community action to identify skilling needs. Create a register of those wanting employment/self-employment and a plan for every youth in partnership with professionals at the cluster level.
    • Initiative at the local level: Converge initiatives for education, health, skills, nutrition, livelihoods, and employment at the local government level with women’s collectives to ensure community accountability and effective outcomes.
    • Vocational programmes: Introduce need-based vocational courses/certificate programmes alongside undergraduate programmes in every college to improve employability.
    • Healthcare at international benchmark: Standardize nursing and allied health-care professional courses according to international benchmarks to meet the demand for skilled professionals.
    • Women security: Create community cadres of caregivers to run crèches universally so that women can work without fear.
    • Invest in skill development: Invest in ITIs, and polytechnics as hubs in skill development for feeder schools with a focus on States/districts with the least institutional structure for vocational education.
    • Startup skills in high school: Introduce enterprise and start-up skills through professionals in high schools to impart finishing skills to students.
    • Apprenticeship program in Industry: Have a co-sharing model of apprenticeships (combine practical training in a job with study) with the industry on scale to ensure the industry has a stake in the apprenticeship program.
    • Absorption of youth at the workplace: Apprenticeships on the scale can facilitate the absorption of youth in the workplace, with the government’s condition for employer subsidies being wages of dignity on successful completion of the apprenticeship.
    • Capital oan for women: Streamline working capital loans for women-led enterprises/first-generation enterprises to enable them to go to scale.
    • Skill accreditation programme: Start a universal skill accreditation programme for skill-providing institutions, with candidates co-sponsored by the state and employers.
    • Majority of fund in water scares block: Use 70% funds under MGNREGA in 2,500 water-scarce blocks and blocks with high deprivation, with a thrust on the poorest 20 families and a focus on skills for higher productivity.

    Way forward: 

    • Strengthen Industry-Academia Linkages: Enhance collaboration between educational institutions, industry, and vocational training centers to align curricula with industry needs, ensuring employability through internships, apprenticeships, and job placements.
    • Focus on Inclusive Skill Development: Prioritize investment in underdeveloped regions and marginalized groups by expanding access to quality education, vocational training, and entrepreneurship opportunities, especially for women and youth, to bridge the skill gap and promote economic inclusion.

  • The path to Viksit Bharat runs through fields  

    Why in the News?

    India’s 78th Independence Day is a time to reflect on our significant successes and setbacks. We should learn from both to make quicker progress towards the Prime Minister’s vision of a Viksit Bharat@2047 by 2047.

    Key Aspects of Viksit Bharat@2047

    • Economic Growth: The vision aims to elevate India to the status of the world’s third-largest economy and strive for a $30 trillion economy by 2047.
    • Environmental Sustainability: Viksit Bharat aims to preserve biodiversity and mitigate climate change impacts through restoration and conservation efforts.
    • Social Progress: The initiative seeks to build an inclusive society that respects cultural diversity and ensures the dignity and well-being of all citizens.
    • Good Governance: Effective governance is a cornerstone of the Viksit Bharat vision, focusing on accountability, transparency, and sound policies that are responsive to the needs of the people.
    • Youth Engagement: Recognizing the potential of India’s youth, the government has launched initiatives like the “Voice of Youth” portal to encourage young people to contribute ideas for achieving the goals of Viksit Bharat.

    Economic Challenges

    • Weak Domestic Demand: Stagnant or declining demand for goods and services due to low-income growth, high inflation, unemployment, and the impact of the Covid-19 pandemic.
    • High Unemployment: Despite rapid growth, unemployment remains a serious issue, worsened by the pandemic. The unemployment rate in India rose to 8.1 per cent in April 2024 from 7.4 per cent in March 2024, according to CMIE’s Consumer Pyramids Household Survey. 
    • Poor Infrastructure: India lacks adequate infrastructure like roads, railways, ports, power, water and sanitation, hampering economic development. The infrastructure gap is estimated at around $1.5 trillion.
    • Balance of Payments Deterioration: India runs a persistent current account deficit, with imports exceeding exports. Exports and imports decreased by 6.59% and 3.63% respectively in 2022.
    • High Private Debt Levels: India has witnessed a significant rise in debt levels in recent years.
      • According to the Reserve Bank of India (RBI), the total non-financial sector debt reached 167% of GDP in March 2020, up from 151% in March 2016. 
      • Household debt in India rose to 40.10% of GDP in the fourth quarter of 2023, up from 39% in the previous quarter. 

    Military Challenges

    • Securing Borders: Despite conflicts with Pakistan and China, India has reasonably managed border security. However, the rapid rise of China poses economic and military challenges.
    • China’s Growing Influence: Almost all of India’s neighbours are moving closer to China, necessitating better policy and diplomacy to secure India’s interests and ensure regional stability.
    • Military Modernization and Resource Allocation: India’s dependence on foreign arms imports, despite efforts to promote self-reliance through initiatives like “Make in India,” highlights the need for a robust domestic defense industry.
      • The country has been the largest arms importer from 2018 to 2022, indicating ongoing challenges in achieving military self-sufficiency

    Suggestive measures: (Way forward)

    • Agricultural Reforms: Investment in agricultural research and development, irrigation, and land-lease markets is vital. Building value chains for perishables can enhance food security and adapt to climate challenges.
    • Nutritional Security: Transitioning from mere food security to nutritional security is crucial, addressing issues like child malnutrition, which affects 35% of children under five.
    • Support for Farmers: Implementing subsidies for pulses and other sustainable crops can encourage healthier diets and environmental benefits. The government should provide financial incentives to farmers to shift from water-intensive crops to pulses.
    • Infrastructure Development: Continued investment in infrastructure, including transportation and digital connectivity, is essential for economic growth and improving citizens’ quality of life.
    • Education and Skill Development: Reforms in education to prioritize skill development and innovation are necessary to prepare the workforce for emerging industries and ensure inclusive growth.
    • Healthcare Initiatives: Expanding access to affordable healthcare services nationwide is critical for enhancing public health and productivity.

    Mains PYQ:

    Q Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (UPSC IAS/2016)

  • [17th August 2024] The Hindu Op-ed: The essence of India’s inflation problem

    PYQ Relevance:

    Q.1) Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)

    Q.2) Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of society. Discuss. (UPSC IAS/2022)

    Mentor comment: Food inflation in India significantly impacts the economy, particularly affecting low-income households that spend over 50% of their income on food. High food prices can lead to increased overall inflation, influencing wage demands and inflation expectations. This creates second-round effects, where rising food costs contribute to broader inflationary pressures. The persistence of food inflation complicates monetary policy, as the Reserve Bank of India struggles to control inflation without directly addressing food prices, which are influenced by supply-side factors beyond its control. Thus, food inflation remains a critical challenge for economic stability.

    Let’s learn!

    __

    Why in the news? 

    The Economic Survey suggests removing food prices from the RBI’s inflation target, shifting focus from headline to core inflation, and impacting inflation control strategies.

    Challenges related to Food Inflation: 

    1. Persistent High Food Inflation: Food price inflation in India has been elevated since 2019, with a year-on-year increase of close to 10% reported in June 2024. This trend indicates that high food inflation is not solely a consequence of external factors like the COVID-19 pandemic or the Ukraine war, but also reflects underlying domestic issues.
    2. Impact on Overall Inflation: Food prices constitute a significant portion of the consumer price index (CPI), accounting for nearly 50% of household expenditure in India. This high share means that fluctuations in food prices directly influence overall inflation rates, which have been higher than usual due to persistent food price increases.
    3. Food Prices as a Determinant of Core Inflation: Research indicates that food price inflation significantly affects core inflation in India. Rising food costs can lead to increased wages, which are a major component of production costs for firms. Thus, ignoring food prices in inflation targeting undermines the effectiveness of monetary policy.
    4. Long-Term Food Inflation Issues: Food price inflation has not been negative in any of the past 13 years, highlighting a persistent issue in the Indian economy. food inflation is a structural problem that needs to be addressed through comprehensive economic policies.

    The reason behind removing food prices from the RBI’s inflation target:

    1. High Sensitivity of Food Prices: Food prices in India are highly susceptible to supply shocks, such as erratic monsoon rains and agricultural disruptions. This volatility can lead to significant fluctuations in headline inflation, making it difficult for the RBI to maintain a stable inflation target when food prices are included in the calculation.
    2. Overshadow the impact of Monetary policy: Food constitutes about 46% of the Consumer Price Index (CPI) basket in India. This high weight can dilute the effectiveness of monetary policy aimed at controlling inflation, as changes in food prices can overshadow the impact of policy rate adjustments on core inflation measures.
    3. Core Inflation as a More Stable Measure: By focusing on core inflation, which excludes food and energy prices, the RBI could potentially achieve a more stable and manageable inflation target. This shift is based on the premise that core inflation is less influenced by volatile food prices and can provide a clearer picture of underlying inflation trends

    Way forward: 

    • Strengthening Agricultural Infrastructure and Supply Chain Management: To tackle the persistent issue of high food inflation, it is crucial to invest in and strengthen agricultural infrastructure, including irrigation systems, storage facilities, and transportation networks.  
    • Integrated Monetary and Fiscal Policy Approach: A more holistic approach is needed, where monetary policy is complemented by targeted fiscal interventions to manage food inflation.
      • The RBI should coordinate with the government to develop policies that address food price volatility, such as creating strategic food reserves, implementing effective buffer stock management, and providing targeted subsidies to protect vulnerable populations.  

  • [pib] Amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 

    Why in the News?

    The Finance Ministry has issued a notification amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, to simplify Foreign Direct Investment (FDI) rules.

    Key amendments made by the Finance Ministry:

    Details
    Cross-Border Share Swaps Simplifies the process for Indian companies to engage in cross-border share swaps with foreign companies.
    Clarity on Downstream Investments Provides clearer guidelines on the treatment of downstream investments by OCI-owned entities on a non-repatriation basis, aligning them with NRI-owned entities.
    FDI in White Label ATMs (WLAs) Allows FDI in White Label ATMs to increase the geographical spread of ATMs, particularly in semi-urban and rural areas.
    Standardization of ‘Control’ Definition Standardizes the definition of ‘control’ to ensure consistency with other Acts and laws.
    Harmonization of ‘Startup Company’ Definition Aligns the definition of ‘startup company’ with the Government of India’s notification G.S.R. 127 (E) dated February 19, 2019.

    About The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 

    • These rules govern foreign investment in India in non-debt instruments like equity shares, mutual funds, and real estate (excluding agricultural land).
    • These rules, effective from October 17, 2019, were issued under FEMA, 1999 (Foreign Exchange Management Act).

    It covers the following key aspects:

    • FDI Regulation: Specifies guidelines for foreign direct investment (FDI) in various sectors, including sectoral caps and conditions.
    • Investment Vehicles: Allows investment through entities like Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), and mutual funds.
    • Repatriation: Provides a framework for repatriation of profits, dividends, and capital by foreign investors.
    • Reporting: Mandates detailed reporting for companies receiving foreign investments.
    • Sectoral Caps and Conditions: Sets sectoral limits and approval requirements for foreign investment, with some sectors requiring government approval.
    • Prohibited Sectors: Prohibits foreign investment in sectors like lottery, gambling, chit funds, and agricultural land.
    • Transfer of Shares: Outlines guidelines for share transfer between residents and non-residents, ensuring compliance with regulatory conditions.

    PYQ:

    [2020] With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

    (a) It is the investment through capital instruments essentially in a listed company.

    (b) It is a largely non-debt creating capital flow.

    (c) It is the investment which involves debt-servicing.

    (d) It is the investment made by foreign institutional investors in the Government securities.

  • [pib] Oeko-Tex Certification for Eri Silk

    Why in the News?

    The North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC), under the Ministry of Development of North Eastern Region (DoNER), has achieved the prestigious Oeko-Tex certification for its Eri Silk.  

    What is Oeko-Tex Certification?

     Details
    EstablishmentFounded in 1992 by the Oeko-Tex Association.

    Comprises 18 independent textile research and testing institutes.

    Certification SystemIndependent testing and certification for textile safety and environmental standards.
    Key Standards– STANDARD 100: Tests textiles for harmful substances.
    – MADE IN GREEN: Ensures environmentally friendly and socially responsible production.
    – LEATHER STANDARD: For leather products, free from harmful chemicals.
    – STeP: Certification for sustainable textile production facilities.
    – ECO PASSPORT: Certifies safe chemicals used in textiles.
    – DETOX TO ZERO: Supports elimination of hazardous chemicals in production.
    Testing ProcessProducts tested for harmful substances like heavy metals, formaldehyde, azo dyes, etc.
    Global RecognitionTrusted worldwide for ensuring product safety, environmental friendliness, and social responsibility.
    Benefits– Consumers: Assurance of safe, chemical-free products.
    – Manufacturers: Access to global markets, improved brand reputation.
    – Environment: Promotes sustainable and eco-friendly production.
    UsageFound on clothing, home textiles, bedding, footwear, and more.

    About Eri Silk 

    • Eri Silk is the world’s only vegan silk, where the moth naturally exits the cocoon, making it cruelty-free.
      • Unlike conventional silk production, where cocoons are boiled to extract the silk filament.
    • It is also known as Ahimsa Silk.
    • It is primarily produced in the North-Eastern states of India, especially Assam; also found in Meghalaya, Nagaland, Manipur, and other states.
    • Its production is deeply rooted in the traditions of tribal communities in Assam and adjacent hill areas.

    Significant Features of Eri Silk:

    • Production Process: Known as Ericulture; involves rearing silkworms on castor plants; the silk is spun rather than reeled due to the naturally pierced cocoons.
    • Eco-Friendly: Requires minimal chemicals and water; only 20 litters of water needed to convert 1 kg of raw Eri fiber into yarn.
    • Unique Properties: Isothermal (temperature-regulating), anti-fungal, washable, durable, and less shiny than other silks.

    PYQ:

    [2013] What is an FRP composite material? How are they manufactured? Discuss their application in aviation and automobile industries. (100 words)

  • National Pest Surveillance System (NPSS)

    Why in the News?

    The Centre has launched the AI-based National Pest Surveillance System (NPSS) to help farmers connect with agriculture scientists and experts for pests’ control.

    What is the National Pest Surveillance System (NPSS)?

    • The NPSS is an AI-based platform launched by the government on August 15, 2024.
    • It is designed to help farmers connect with agricultural scientists and experts for effective pest control using their phones.
    • It aims to reduce farmers’ dependence on pesticide retailers.
    • It provides data for selected crops i.e. Rice, Cotton, Maize, Mango and Chilies.

    How will farmers use it?

    • Farmers can take photos of infested crops or pests using the NPSS platform, which are then analyzed by scientists and experts.
    • Then they will suggest the correct quantity of the pesticide at the right time, reducing excessive pesticide use.
    • Target Groups: Approximately 14 crore farmers across India.

    Significance

    • It will reduce crop damage, improve pest management practices, and reduce the risk of soil damage by minimizing excessive pesticide use.

    PYQ:

    [2014] With reference to Neem tree, consider the following statements:

    1. Neem oil can be used as a pesticide to control the proliferation of some species of insects and mites.

    2. Neem seeds are used in the manufacture of biofuels and hospital detergents.

    3. Neem oil has applications in pharmaceutical industry.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • [pib] Operational Guidelines for Implementation of ‘Model Solar Village’

    Why in the news?

    • The Ministry of New and Renewable Energy has issued operational guidelines for the Implementation of ‘Model Solar Village’ under PM-Surya Ghar Muft Bijli Yojana.
      • The centre recently allocated ₹800 crore for the same.

    About PM Surya Ghar Muft Bijli Yojana

    Description
    Purpose To provide 300 units of free electricity per month to beneficiaries through an investment of ₹75,000 crores.
    Deadline Extended the deadline from 2022 to 2026.
    Announcement Initially announced in an Interim Budget 2024-25 speech by the Finance Minister.
    Target Aimed to light up 1 crore households.
    Implementation Urban Local Bodies and Panchayats are incentivised to promote rooftop solar systems.
    Financial Support
    Average Monthly Electricity Consumption (units) Suitable Rooftop Solar Plant Capacity Subsidy Support
    0-150 1-2 kW ₹ 30,000  to ₹ 60,000
    150-300 2-3 kW ₹ 60,000  to ₹ 78,000
    > 300 Above 3 kW ₹ 78,000

     

    Features of the ‘Model Solar Village’ Initiative:

    Details
    Comprehensive Solarization
    • Solarize all households and public areas with home lighting, water systems, pumps, and streetlights.
    • Seeks to create one Model Solar Village per district.
    Implementing Agency State Renewable Energy Development Agency (SREDA) or another entity nominated by the State/UT Government will implement the scheme.
    24×7 Solar-Powered Village Develop villages powered entirely by solar energy, promoting self-reliance in meeting energy needs.
    Central Financial Assistance (CFA)
    • ₹1 crore grant per village based on a Detailed Project Report (DPR) by the Implementing Agency.
    • The total financial allocation for this initiative is ₹800 crore.
    Eligibility Criteria
    • Revenue village with a population over 5,000 (or 2,000 in special category states).
    • Based on installed renewable energy capacity, overseen by the District Level Committee (DLC) 6 months after the declaration.
    Fund Disbursement 40% on the award of works, 40% after completion, 20% after 6 months of operation.

     

    PYQ:

    [2018] With reference to solar power production in India, consider the following statements:

    1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.

    2. The solar power tariffs are determined by the Solar Energy Corporation of India.

    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