💥Mains Ready By December. Smash Mains & Smash PYQ Admissions Open
Talk to Mentor

Civilsdaily

Login

Subject: Economics

  • Cabinet approves continuation of PM-AASHA to provide better prices to farmers

    Why in the News?

    The government has approved the extension of the PM-AASHA scheme, allocating ₹35,000 crore, to ensure farmers receive better prices for their produce and to regulate price fluctuations of essential commodities for consumers.

    What is PM-AASHA?

    Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is an umbrella scheme launched by the Government of India in September 2018, aimed at ensuring remunerative prices for farmers’ produce. It integrates various existing schemes to provide a comprehensive approach to price support, including:

    • Price Support Scheme (PSS): Physical procurement of specific crops by central agencies.
    • Price Deficiency Payment Scheme (PDPS): Direct payments to farmers for the difference between the Minimum Support Price (MSP) and market prices.
    • Pilot of Private Procurement & Stockist Scheme (PPPS): Involvement of private players in crop procurement.

    The scheme has been extended until 2025-26 with a financial outlay of ₹35,000 crore to enhance its effectiveness and reach.

    What are the implications of PM-AASHA?

    • Income Security: By ensuring MSP, PM-AASHA aims to stabilize farmers’ incomes and protect them from price fluctuations in the market.
    • Increased Production: The assurance of remunerative prices is expected to encourage farmers to increase production, particularly in pulses and oilseeds, which have historically been underproduced.
    • Market Stability: The scheme helps regulate prices of essential commodities, making them affordable for consumers while ensuring fair compensation for producers.
    • Strengthened Procurement Mechanism: The integration of various schemes under PM-AASHA enhances the overall procurement process, making it more efficient and transparent.

    What are the issues related to MSP?

    • Limited Coverage: MSP is primarily applicable to a few crops like wheat and rice, leaving many farmers without guaranteed prices for their produce.
    • Inefficient Procurement Infrastructure: The existing infrastructure for procurement is inadequate, leading to delays and inefficiencies that affect farmers’ ability to sell their produce at MSP.
    • Lack of Awareness: Many farmers are unaware of their rights regarding MSP or how to access these benefits effectively.
    • Regional Disparities: There are significant regional disparities in the implementation of MSP. States like Punjab and Haryana benefit more from MSP due to better procurement systems, while farmers in other states may struggle to access these benefits.
    • Market Distortions: The MSP system leads to market distortions, encouraging overproduction of certain crops while neglecting others.

    What should be done to resolve the issues related to MSP?

    • Expand MSP Coverage: The government should consider extending MSP to a wider range of crops, particularly those that are crucial for food security and farmer livelihoods.
    • Enhance Procurement Infrastructure: Investments should be made in developing better procurement facilities, including storage and transportation systems, especially in rural areas.
    • Increase Awareness Campaigns: Implementing educational programs for farmers about their rights regarding MSP and how they can benefit from it would empower them significantly.

    Mains PYQ:

    Q What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?  (UPSC IAS/2016)

  • Adjusted Gross Revenue (AGR)

    Why in the News?

    The Supreme Court has dismissed the curative petitions filed by major telecom service providers, seeking relief from the 2019 judgment regarding Adjusted Gross Revenue (AGR) dues.

    What is Adjusted Gross Revenue (AGR)?

    • AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
    • It forms the basis for calculating telecom companies’ dues to the government, including the license fee and spectrum usage charges (SUC).
    • The AGR is divided into:
    1. Spectrum Usage Charges (SUC): These are pegged at 3-5% of AGR, depending on the telecom company’s spectrum holdings.
    2. License Fees: Telecom operators are required to pay 8% of their AGR as a license fee to the government.

    Contention over AGR Calculation

    • The DoT maintains that AGR should include all revenues earned by telecom companies, including non-telecom sources such as deposit interest, asset sales, and dividends.
    • Telecom operators, on the other hand, insist that AGR should only include revenues generated from core telecom services, excluding income from non-telecom sources like interest and capital gains.

    Legal Disputes on AGR

    1. Beginning of the Dispute (2005): The AGR saga began in 2005 when the Cellular Operators Association of India (COAI) challenged the government’s definition of AGR in court. The dispute centered on whether non-telecom revenue should be included in the AGR calculation.
    2. TDSAT Ruling (2015): In 2015, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruled in favor of telecom companies. TDSAT held that AGR should include only revenue from core telecom activities and exclude non-core sources such as rent, profit from the sale of assets, dividends, and interest income.
    3. Supreme Court Ruling (2019): Setting aside the TDSAT decision, the SC upheld the DoT’s definition of AGR on October 24, 2019, declaring that AGR must include all revenue sources, including non-telecom activities like interest and capital gains. This ruling significantly increased the financial liabilities of telecom companies, as they had to pay outstanding dues.

    Financial Impact of the AGR Ruling

    The Supreme Court ruling had serious financial implications for telecom companies:

    • Massive Liabilities: Telecom companies, especially Vodafone Idea and Bharti Airtel, faced huge financial liabilities. The ruling resulted in unpaid dues amounting to over ₹1.4 lakh crore, which included penalties and interest.
    • Vodafone Idea’s Crisis: Vodafone Idea, in particular, was hit hard by these liabilities and faced potential insolvency, with its future in the Indian telecom sector hanging in the balance.
    • Sector Consolidation: The financial pressure from the AGR liabilities led to the consolidation of the telecom sector, with smaller players exiting the market.

    PYQ:

    [2019] In India, which of the following review the Independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2

    (b) 1, 3 and 4

    (c) 3, 4 and 5

    (d) 2 and 5

  • Nagaland’s King Chilli Festival

    Why in the News?

    The village of Seiyhama in Nagaland hosted the 3rd edition of the Naga King Chilli Festival, celebrating the importance of the Naga king chilli, one of the world’s hottest chillies.

    About Naga King Chilli

    • The Naga King Chilli, also known as Raja Mircha or Bhut Jolokia, is one of the world’s hottest chillies, with heat levels exceeding 1 million Scoville Heat Units (SHU).
    • It is primarily grown in the Northeast Indian states of Nagaland, Assam, Manipur, and Arunachal Pradesh.
    • In 2006, it was certified by the Guinness World Records as the hottest chilli in the world, a title it held for several years.
    • In 2008, it received a GI tag, recognizing its unique origin and significance in the global spice market.
    • The chilli has a heat range of 800,000 to 1,041,427 SHU, making it significantly hotter than common chillies like the jalapeño, which has a SHU of 2,500 to 8,000.
    • Benefits offered:
      • Rich in capsaicin, it is known for its pain-relieving properties and potential health benefits, such as boosting metabolism, promoting heart health, and relieving pain and inflammation.
      • Traditionally, the chilli has been used to preserve food in Nagaland’s hot, humid climate, helping to extend the shelf life of food and reduce waste.
    • Cultivation:
      • The chilli is grown in bamboo groves using ancient cultivation methods.
      • Farming begins in December or January, with peak harvests in August and September.
      • Approximately 150 households in Seiyhama village, Nagaland, cultivate the Naga King Chilli, with the annual harvest reaching 14,000 kg, valued at ₹70 lakh.

    PYQ:

    [2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees

    2. Rajasthani Daal-Bati-Churma

    3. Tirupathi Laddu

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 only 3 only

    (d) 1, 2 and 3

  • Why US Fed cut interest rates, how India could be impacted? 

    Why in the News?

    The United States Federal Reserve, responsible for the country’s monetary policy, announced on Wednesday that it will lower its key interest rate, called the Federal Funds Rate, by 0.5%, or 50 basis points.

    Why did the Fed cut interest rates?

    • The Federal Reserve cut the benchmark interest rate by 50 basis points to address rising unemployment concerns while inflation was stabilizing.
    • After a series of aggressive rate hikes to counter inflation that surged due to post-COVID recovery and the Russia-Ukraine war, inflation began to moderate, nearing the Fed’s target of 2%.
    • Rising unemployment data signaled that the restrictive monetary policy might harm the labor market, prompting the Fed to act.

    Will the US economy achieve a soft landing?

    • Optimistic Projections: Despite earlier predictions that high inflation would lead to a recession, the Fed’s strategy may succeed in achieving a soft landing, reducing inflation without crashing the economy.
    • GDP Growth: The Summary of Economic Projections (SEP) estimates GDP growth to remain around 2% for the next few years, indicating a stable economy.
    • Unemployment: While the unemployment rate has risen slightly to 4.4%, it remains manageable, with expectations of improvement.
    • Risks: Potential policy shifts, especially related to the upcoming presidential election, could disrupt the economic outlook, particularly if trade tariffs are imposed.

    How will India be affected?

    • Increased Foreign Investments: Lower US interest rates could encourage foreign investors to borrow in the US and invest in India through stocks, bonds, or foreign direct investment (FDI), benefiting capital inflow.
    • Rupee Strengthening: With falling US interest rates, the US dollar may weaken against the Indian rupee, potentially strengthening the rupee. This would negatively affect Indian exporters but benefit importers.
    • RBI’s Interest Rate Decisions: While the Fed’s rate cuts influence global markets, India’s central bank, the RBI, may not directly follow suit due to differing inflation targets and mandates. The RBI prioritizes inflation control and GDP growth over unemployment figures.

    Way forward: 

    • Encourage Capital Inflows: India should take advantage of lower US interest rates by attracting foreign investments through improved ease of doing business, fostering growth in key sectors like infrastructure, technology, and manufacturing.
    • Maintain Monetary Stability: The RBI should carefully assess global trends but prioritize domestic conditions when adjusting interest rates, focusing on inflation control, financial stability, and sustained GDP growth.

    Mains PYQ:

    Q 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/2016)

  • White Revolution 2.0

    Why in the News?

    The Ministry of Cooperation unveiled White Revolution 2.0, focusing on empowering women farmers and creating job opportunities in the dairy cooperative sector.

    What is White Revolution 2.0?

    Details
    Objective Transforming India’s dairy sector by empowering women farmers, increasing milk production, and modernizing dairy infrastructure.
    Target  Increase procurement from the current 660 lakh litres per day to 1,000 lakh litres per day.
    Funding • Initial funding of ₹40,000 per Multi-Purpose Primary Agricultural Credit Society (PACS) by National Dairy Development Board.
    • Total outlay of ₹70,125 crore with full government budgetary support.
    Provisions and Features 1. Women Empowerment: Focus on empowering women in the dairy sector and strengthening women’s cooperatives.
    2. Increase in Milk Procurement: Aims to raise procurement by 50% over the next five years.
    3. Cooperative Infrastructure: 100,000 new and existing cooperative societies (district cooperative societies and Primary Agricultural Credit Societies) to be set up or enhanced.
    4. RuPay Kisan Credit Cards: Nationwide rollout for dairy farmers, with micro-ATMs at cooperative societies.
    5. Computerisation of Primary Agricultural Credit Societies: 67,930 Primary Agricultural Credit Societies will be computerised for better management.
    Significance 1. Women Empowerment: Creates leadership opportunities for women in dairy, promoting gender equality.
    2. Boost to Rural Economy: Strengthening cooperatives and milk procurement will improve rural livelihoods.
    3. Improved Infrastructure: Modern technology, micro-ATMs, and computerisation will increase efficiency.
    4. Job Creation: Expanding cooperatives and modern practices will generate jobs for 130 million farmers.
    5. Malnutrition Reduction: Enhances dairy quality to combat malnutrition.
    6. Cooperative Modernisation: Focus on Artificial Intelligence and advanced technologies.
    7. Dairy Exports Boost: Improved production and quality to enhance India’s dairy exports.

     

    PYQ:

    [2017] Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India?

  • INCOIS Launches Integrated Ocean Energy Atlas  

    Why in the News?

    INCOIS unveiled an ‘Integrated Ocean Energy Atlas’ for India’s EEZ, highlighting vast marine energy potential from solar, wind, waves, tides, currents, and thermal resources.

    About INCOIS:

    • The Indian National Centre for Ocean Information Services (INCOIS) is an autonomous body established in 1999 under the Ministry of Earth Sciences (MoES) in India.
    • Its primary mission is to provide ocean data, information, and advisory services to various stakeholders, including society, industry, government, and the scientific community through sustained ocean observations.

    Key Features of the Integrated Ocean Energy Atlas

    • The Atlas encompasses marine meteorological energy sources like solar and wind, and hydrological energy forms such as waves, tides, currents, ocean thermal, and salinity gradients within India’s EEZ.
    • It identifies areas with high potential for energy generation and will serve as a reference for policymakers, industry and researchers for harnessing these rich energy resources.
    • INCOIS prepared the annual, monthly, and daily energy estimates of ocean energy components that can be visualised through a WebGIS interface at 5 km grid resolution.

    Significant potential of the Indian Exclusive Economic Zone (EEZ)

    • INCOIS has estimated integrated ocean energy of approximately 9.2 lakh TWh per annum within the EEZ of India.
    • The vast coastline of over 7,000 km and the EEZ covering up to 220 km from the coast offers ample scope for generating energy from blue renewable sources like tidal waves, currents, solar and wind.

    What India can learn from this Report? (Way forward)

    • The Atlas provides a blueprint for India to tap into its vast untapped ocean energy resources to meet its growing energy demands in a sustainable manner.
    • It offers estimated values of renewable energy that can be generated from individual or integrated blue renewable sources at potential sites along the coast
    • The detailed mapping of energy potential at a granular 5 km grid level can help industries plan and make informed decisions for developing offshore renewable energy projects.
    • Collaborating with industrial partners and public sector companies to harness energy at high-potential zones identified in the Atlas can accelerate the adoption of marine energy technologies.
    • The Atlas can serve as a model for other countries in the Indian Ocean region to assess their blue energy reserves and promote regional cooperation in harnessing ocean energy resources.

    Mains PYQ:

    Q Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our government for this purpose? (UPSC IAS/2020)

  • [18th September 2024] The Hindu Op-ed: Demographic advantage, Indian economy’s sweet spot

    [18th September 2024] The Hindu Op-ed: Demographic advantage, Indian economy’s sweet spot

    PYQ Relevance:

    [2022] Economic growth in the recent past has been led by an increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to the creation of more jobs without compromising labour productivity.
    [2014] While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.

    Prelims:

    [2013]  Economic growth in country X will necessarily have to occur if:
    (a) there is technical progress in the world economy
    (b) there is population growth in X
    (c) there is capital formation in X
    (d) the volume of trade grows in the world economy 

    Mentor’s Comment:  India has become a global economic powerhouse, now ranking as the fifth-largest economy and holding the title of the fastest-growing major economy. A significant factor in this growth is its demographic advantage, with a median age of 28 and 63% of the population being of working age. However, the labour force participation rate in 2022 stood at 55.2%, according to the International Labour Organization (ILO). The report also notes that much of this growth is led by the services sector, which is less labour-intensive, underscoring the importance of fully leveraging the demographic dividend.

    _

    Let’s learn!

    Why in the News?

    India is not fully capitalizing on its demographic dividend, former RBI governor Raghuram Rajan stated on April 16, highlighting the need to prioritize the development of human capital and the improvement of skill sets.

    Factors behind Service-pushed Growth

    • Capital and Labour Ratios: The Economic Survey 2023-24 highlighted a declining capital-to-output ratio and an increasing capital-to-labour ratio.
    • Labour Abundance: Arvind Panagariya, Chairman of the 16th Finance Commission, noted that capital-led economic growth is not ideal for India, which has an abundance of labour.
    • MSMEs and Labour Laws: Micro, Small, and Medium Enterprises (MSMEs) are hesitant to scale up due to outdated labour laws and compliance burdens.
    • Labour Codes: The impasse over new labour codes, approved by Parliament but yet to be implemented, sends a negative signal to investors.

    Employment in Labour-Intensive Sectors

    • Agriculture Employment: 45% of the workforce is employed in agriculture, which contributes only 18% of GDP, making it essential to boost manufacturing.
    • Unorganised Sector: The unorganised and non-agricultural sectors employ 19% of the workforce and need focused attention.
    • High-Growth Sectors: High-growth sectors such as toys, apparel, tourism, and logistics can provide labour-intensive employment opportunities.
    • Skilling for Growth: Upgrading skills in these sectors will help workers move up the value chain and access better-paying jobs.

    The Importance of Skilling

    • Workforce Productivity: Skilling is vital for making the workforce productive, with only 4.4% of the workforce aged 15-29 being formally skilled, according to the Economic Survey.
    • Public-Private Partnerships: Public-private partnerships are crucial for creating a relevant curriculum and offering on-the-job training.
    • Lifelong Learning: Skilling should be a lifelong process with flexible learning systems, not just a one-time intervention.
    • New Education Policy (NEP) 2020: The NEP 2020 focuses on foundational and cognitive skills but needs regular review to stay updated.

    Impact of AI and Machine Learning

    • Job Threats and Opportunities: AI and machine learning (ML) pose a threat to low-skill, repetitive jobs but will still require human oversight.
    • Regulatory Framework: Creating appropriate regulations to govern AI/ML while leveraging its potential is key.
    • Market Growth: The AI/ML market is expected to grow nearly nine times by 2030, reaching $826.73 billion globally.
    • Talent Pool: India has the second-largest talent pool in AI/ML, but with a current demand-supply gap of 51%, it presents a significant opportunity for growth.

    Way Forward

    • Sustaining Growth: Reforms are essential to sustain India’s growth trajectory and create new opportunities.
    • Policy Focus: Finance Minister Nirmala Sitharaman emphasized the need for improving productivity and making markets more efficient in her 2023 Budget speech.
    • State-Level Reforms: While the central government has improved the ease of doing business, state-level reforms are crucial as states are where most economic activities occur.
    • Collaboration: Both the Centre and States must collaborate to broaden and deepen reforms for sustained economic growth.

    Conclusion:

    India’s large, young, and aspirational population presents a unique opportunity. Managing this demographic advantage is more favorable than dealing with the challenges of an aging population.

    https://www.thehindu.com/opinion/op-ed/demographic-advantage-indian-economys-sweet-spot/article68652703.ece

  • Government scraps Windfall Tax on Crude Oil

    Why in the News?

    The Government of India has scrapped the windfall tax on crude oil, which was previously set at ₹1,850 per tonne.

    What is Windfall Tax?

    Details
    Definition A higher tax levied on companies that earn unexpected and extraordinary profits due to external factors.
    Purpose To capture a portion of excess profits from industries benefiting from global price surges, such as oil.
    Imposition in India Imposed as a Special Additional Excise Duty (SAED) on crude oil production and exports of diesel, petrol, and aviation turbine fuel (ATF).
    Dynamic Tax Rate Revised every 15 days based on international oil prices in the preceding fortnight.
    First Imposed July 1, 2022, during the Russia-Ukraine conflict and post-COVID recovery.
    Application Applies to domestically produced crude oil and exports of diesel, petrol, and ATF.
    Reasons for Imposing
    • Sharp rise in global oil prices due to external factors like the Russia-Ukraine war.
    • Capture supernormal profits of energy companies for public welfare.
    Benefits
    • Generates revenue for public welfare schemes.
    • Ensures fair distribution of profits from market volatility.
    • Stabilizes fuel prices during inflation or supply chain disruptions.

     

    India’s Crude Oil Trade:

    • India is the 3rd largest oil consumer globally, following the US and China.
    • The country relies on imports for 85% of its oil needs, with this dependence expected to increase due to declining domestic production.
    • Russia has become India’s top oil supplier, with imports surging to 1.53 million barrels per day (bpd) in January 2024.
    • Russia (1st) > Iraq (2nd) > Saudi Arabia (3rd)> UAE (4th) – Crude oil export to India 

     

    PYQ:

    [2020] The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of:

    (a) Crude oil

    (b) Bullion

    (c) Rare earth elements

    (d) Uranium

    [2017] Petroleum refineries are not necessarily located nearer to crude oil producing areas, particularly in many of the developing countries. Explain its implications. (250 words)

  • [pib] BHASKAR Platform for India’s Startup Ecosystem

    Why in the News?

    The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has launched the BHASKAR platform.

    About BHASKAR Platform

    Details
    Platform Name Bharat Startup Knowledge Access Registry (BHASKAR)
    Launched By Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    Objective To strengthen India’s startup ecosystem by centralizing resources and facilitating collaboration
    Target Audience Startups, investors, mentors, service providers, and government bodies
    Key Features
    • Networking and Collaboration: Connects startups, investors, and mentors, enabling interaction across sectors.
    • Centralized Access to Resources: Provides instant access to critical tools, knowledge, and resources for startups, enhancing decision-making and growth.
    • Personalized BHASKAR IDs: Each stakeholder (startup, investor, mentor) receives a unique ID for tailored interactions and services.
    • Enhanced Discoverability: Users can easily search and find relevant resources, collaborators, and opportunities using powerful search features.
    • Access to Funding Opportunities: Facilitates connections between startups and potential investors for funding.
    • Global Outreach: Supports cross-border collaborations and fosters India’s global presence in the innovation ecosystem.
    Impact
    • Promotes innovation, entrepreneurship, and job creation
    • Enhances India’s status as a global leader in startups

    Growth of the Startup Ecosystem

    • As of May 2023, India boasts over 99,000 officially recognized startups, making it the third-largest startup ecosystem globally. This growth reflects an increase from 84,012 startups in 2022 and a notable rise from just 452 in 2016.
    • The ecosystem has also produced 108 unicorns, startups valued at over $1 billion, collectively worth approximately $340.80 billion

    PYQ:

    [2015] “Success of ‘Make in India’ program depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.

  • A human touch to India’s mineral ecosystem

    Why in the News?

    The Indian government’s Mines and Minerals Act of 2015, which mandated auctions and established the District Mineral Foundation (DMF), continues to ensure local communities benefit from natural resource-led development.

    • DMF after entering its 10th year has amassed almost ₹1 lakh crore, transforming mineral wealth into a development lifeline for these regions.

    How did the District Mineral Foundation (DMF) work in India?

    • The DMF mandates mining licensees and leaseholders to contribute a portion of their royalty payments to the DMF. The ‘National DMF Portal’ has been introduced to enhance transparency and efficiency.
    • It aims to promote sustainable development and welfare for mining-affected communities.
    • A District Collector leads the DMF, ensuring that funds are allocated to areas with the greatest need.
      • Funds are used for decentralized, community-centric development projects in mining districts.
    • As of 2024, around 3 lakh projects have been sanctioned across 645 districts in 23 states. These initiatives focus on improving socio-economic and human development indicators.

    About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):

    • Objective: Launched under the DMF, PMKKKY focuses on implementing developmental and welfare projects in mining-affected regions.
      • It aims to minimise the negative impacts of mining on local communities and ensure sustainable livelihoods.
    • Complementary Approach: PMKKKY works alongside existing state and central government schemes, reinforcing district development goals.
    • PMKKKY projects cover healthcare, education, skill development, sanitation, water supply, and sustainable livelihoods.
      • It has also empowered women through self-help groups and supported youth skill development initiatives like drone technology training.

    Significance and Scope of DMF in India:

    • Community Welfare: DMFs provide direct financial resources for the welfare of communities affected by mining activities, transforming mineral wealth into tangible social benefits.
    • Inclusive Development: DMFs empower local communities, with focus on social inclusivity by involving elected representatives and non-elected gram sabha members in governance structures.
    • Cooperative Federalism: DMFs are a model of cooperative federalism, converging national, state, and local governance to address mining impacts and foster regional development.
    • Innovation and Planning: Various DMFs innovate to maximise project impact, adopting three-year plans for goal-oriented development, establishing dedicated engineering departments, and employing Public Works Department personnel for efficient project execution.
    • Sustainability: DMFs aim to align with the Sustainable Development Goals (SDGs), focusing on forest dwellers’ livelihoods, sports infrastructure, and health. They contribute to long-term environmental and socio-economic sustainability.

    Way Forward:

    • Standardisation and Best Practices: Establish uniform guidelines to standardise successful practices across DMFs while retaining local knowledge, ensuring efficient implementation of long-term, goal-oriented projects.
    • Enhanced Integration with National Schemes: Strengthen the integration of DMF activities with ongoing central and state schemes, particularly in aspirational districts, to amplify the socio-economic and environmental benefits in mining-affected regions.