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Subject: Economics

  • Digitalizing Climate-Smart Agriculture: Framework for G20 Countries

    Agriculture

    Central Idea

    • Climate-smart agriculture (CSA) is a part of India’s and the G20 countries’ Sustainable Development Goals (SDGs) vision. It is a complex, mega-scale challenge. The objective of CSA is to optimise a country’s agriculture productivity, resilience, and emissions in response to climate change (long-term, irreversible changes in temperature, precipitation, humidity, pressure, and wind). The G20 can play a key role in addressing the challenge of climate-smart agriculture

    What is Climate-smart agriculture (CSA)?

    • Sustainable agricultural practice: Climate-smart agriculture (CSA) refers to the sustainable agricultural practices that help to increase food production and farmer incomes, improve resilience to climate change, and reduce greenhouse gas emissions.
    • CSA aims to achieve three goals simultaneously: (1) sustainably increasing agricultural productivity and incomes, (2) adapting and building resilience to climate change, and (3) reducing and/or removing greenhouse gas emissions, where possible.
    • It involves a combination of strategies, technologies, and policies that are tailored to the specific needs and conditions of each country’s agriculture sector.

    Challenges for Climate-smart agriculture (CSA)

    • Complex and multi-dimensional: CSA is a complex and multi-dimensional challenge that requires integrated solutions, which may be difficult to implement and require significant investments.
    • Lack of awareness and knowledge: Many farmers are not aware of the benefits of CSA and may not have the knowledge or skills to implement it effectively.
    • Access to finance: Financing for CSA practices may be limited, especially for smallholder farmers who may lack collateral or access to credit.
    • Policy and institutional constraints: Policies and institutions may not be aligned to support the adoption and scaling up of CSA practices.
    • Technical and technological challenges: CSA requires the use of appropriate technologies and practices, which may not be available or accessible in some regions.
    • Climate change impacts: The impacts of climate change, such as droughts, floods, and other extreme weather events, may negatively affect the productivity and resilience of agricultural systems, making it difficult to implement CSA practices.
    • Data and information gaps: There may be gaps in data and information on the impacts of CSA practices, making it difficult to assess their effectiveness and scale them up.

    G20’s role in addressing these challenges

    • The G20 must play a key role in addressing the challenge of CSA by adopting the ontological framework, method, and recommendations to set the agenda for research, policy, and practice.
    • The G20 must constitute a committee to formulate a systemic agenda for systematic research, policies, and practices for the digitalisation of CSA in a country using the ontology.
    • The Think20 Engagement Groups provide research and policy advice to the G20 and are ideal forums to develop the ontological framework as the G20 presidency rotates between the member countries each year.
    • The ontology of CSA must be adopted globally as a framework for all G20 countries by adapting the crop and region taxonomies to each country.
    • The G20 committee must help countries collaborate in their efforts, coordinate their policies, and communicate their learnings.
    • The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a ‘map’ for the global effort.

    Facts for prelims

    Initiatives

    Description
    National Innovations in Climate Resilient Agriculture (NICRA) A network project launched by the Indian Council of Agricultural Research (ICAR) in 2011 to enhance resilience of Indian agriculture to climate change
    Soil Health Card Scheme Launched in 2015 to provide farmers with information on the nutrient status of their soil and recommend appropriate soil health management practices
    Pradhan Mantri Fasal Bima Yojana Launched in 2016 to provide farmers with insurance coverage and financial support in the event of crop losses due to adverse weather conditions
    Paramparagat Krishi Vikas Yojana Launched in 2015 to promote organic farming practices in India and reduce the use of chemical fertilizers and pesticides
    National Mission for Sustainable Agriculture (NMSA) Launched in 2010 to promote sustainable agriculture practices in India and enhance agricultural productivity and income of farmers
    Rashtriya Krishi Vikas Yojana Launched in 2007 to support agricultural development in India through the provision of financial assistance for various agricultural activities
    National Agriculture Market (e-NAM) Launched in 2016 to create a unified national market for agricultural commodities in India through the use of technology and digital platforms
    Kisan Credit Card Scheme Launched in 1998 to provide farmers with access to affordable credit for agricultural and related activities
    Pradhan Mantri Krishi Sinchai Yojana Launched in 2015 to promote efficient use of water resources in agriculture and enhance water use efficiency in farming
    Zero Budget Natural Farming (ZBNF) A farming practice that aims to eliminate the use of synthetic inputs in agriculture and promote natural farming techniques

    Recommendations to the G20

    1. Outcome Management:
    • Productivity: Encourage the adoption of sustainable soil management practices, provide subsidies and financial incentives for efficient irrigation techniques, and invest in R&D of improved seed varieties.
    • Resilience: Promote crop diversification, develop a comprehensive risk management strategy, and support agroforestry practices.
    • Emissions Management: Develop and implement policies that promote reduced tillage practices, provide financial incentives and support for the adoption of renewable energy technologies, and develop and implement regulations and standards for sustainable livestock management practices.
    1. Regional Management: Utilise digitalisation tools and technologies to effectively differentiate CSA management across regions in India, gather real-time data and information on regional variations, deliver customised and region-specific extension services to farmers, optimise resource use, and facilitate stakeholder engagement and collaboration.
    2. Crop Management:
    • Differentiation of CSA management across crops: Identify the unique agro-ecological and socioeconomic conditions of each crop and design region-specific policies and programmes that promote CSA practices and technologies.
    • Integration of CSA management across crops: Promote the use of integrated crop management practices that focus on optimising resource use, reducing greenhouse gas emissions, and enhancing productivity across multiple crops.
    • Precision crop management: Adopt precision agriculture techniques that utilise real-time data and information to optimise resource use and increase productivity.
    1. Digital Semiotics Management:
    • Collect and analyse weather data: India has a vast network of weather stations across the country that collect data on temperature, precipitation, humidity, pressure, and wind fields. This data can be used to analyse weather patterns and identify trends that affect crop growth and yield. Machine learning algorithms can be used to process the data and provide real-time insights to farmers on weather forecasts, pest and disease outbreaks, and optimal planting and harvesting times.
    • Develop crop-specific models: India has a diverse range of crops grown across different regions, each with unique requirements for temperature, precipitation, and other climatic factors. Crop-specific models can be developed using data and information on climate
    • Promote precision agriculture: Precision agriculture involves the use of digital technologies such as sensors, drones, and satellite imaging to monitor crop health and growth, and provide real-time recommendations to farmers. By incorporating weather data and information into precision agriculture technologies, farmers can make data-driven decisions that are tailored to the local climatic conditions.
    • Build farmer capacity: To effectively use data and information on climate variability, farmers need to have the skills and knowledge to interpret and apply this information to their farming practices. Training programmes and extension services can be developed to build farmer capacity in using digital tools and interpreting weather data. These programmes can be designed to be accessible and affordable to all farmers, including smallholder farmers.

    Agriculture

    Conclusion

    • The digitalisation of CSA requires a roadmap. Addressing the challenge of CSA is a prerequisite to meeting the challenge of food security, and digitalisation is essential to this task. The G20 must set the trajectory for the digitalisation of CSA within the G20 and globally and must provide a map for the global effort to achieve the Sustainable Development Goals vision.

    Mains Question

    Q. What do you understand by mean Climate-smart agriculture (CSA)? Discuss the challenges for CSA and suggest a way ahead for G20 how it can address these challenges?

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     Also read:

    Idea of Urban Agriculture and Use of Technology

     

  • Oil and Gas Price Volatility: India’s Farsighted Governance

    Oil and Gas

    Central Idea

    • The present government has taken several measures to protect Indian consumers from international oil and gas price volatility. The recent Cabinet decision to approve a series of critical Administered Price Mechanism (APM) gas pricing reforms will further advance this objective. These reforms aim to protect Indians from extreme price volatility, promote more innovation and investments in exploration and production (E&P), and provide clarity for planned capex investments in gas-based sectors.

    Reasons for oil and gas price volatility

    • Global supply and demand: The balance between global supply and demand for oil and gas is a key factor in price volatility. If there is a surplus of supply, prices may decrease, while if there is a shortage of supply, prices may increase.
    • Geopolitical tensions: Political tensions between countries, such as trade disputes or conflicts, can affect oil and gas prices. For example, if there is a threat of war or supply disruption in a major oil-producing country, prices may rise.
    • Weather conditions: Extreme weather events, such as hurricanes or cold snaps, can impact oil and gas production and distribution, leading to price fluctuations.
    • Economic growth: Economic growth can drive up demand for oil and gas, which can lead to higher prices. Conversely, economic slowdowns can reduce demand and lead to lower prices.
    • OPEC decisions: The Organization of the Petroleum Exporting Countries (OPEC) plays a significant role in global oil prices by controlling production levels. Decisions made by OPEC, such as production cuts or increases, can affect prices.

    Measures taken by the Indian government to protect consumers from oil and gas price volatility?

    • Increasing domestic Administered Price Mechanism (APM) gas allocation: This step was taken to provide more clarity for planned capital expenditure investments in gas-based sectors and diverting gas from non-priority sectors to transport and domestic segments.
    • APM gas pricing reforms: The recent Cabinet decision to approve a series of critical APM gas pricing reforms will further advance the objective of protecting Indian consumers from extreme price volatility. These reforms achieve two major goals: First, to protect Indians from extreme price volatility, and second, to promote more innovation and investments in exploration and production (E&P).
    • Benchmarking APM prices: The government decided to insulate domestic gas consumers as well as national oil companies from such volatility by benchmarking APM prices to a slope of 10 per cent of Indian crude basket price to be determined on a monthly basis, together with a ceiling of $6.5/MMBTU and floor of $4.5/MMBTU for nomination fields.
    • Reduction in fertiliser subsidies: After these reforms, the reduction in fertiliser subsidies is expected to be more than Rs 2,000 crore each year.
    • Incentivising investment in the E&P sector: These reforms will also help incentivise investment in the E&P sector by providing a floor price for mature fields of nomination while also incentivising new wells of nomination fields which will receive 20 per cent higher prices.
    • Expansion of gas pipeline network and CGD stations: Since 2014, India has increased the length of its gas pipeline network from 14,700 km to 22,000 km in 2023. The number of CGD-covered districts in India has increased from 66 in 2014 to 630 in 2023 while CNG stations have gone up from 938 in 2014 to 5,283 in 2023.

    Facts for prelims

    Type of Oil/Gas Production Process Applications Advantages Disadvantages Pollutants
    Crude Oil Extracted from oil wells through drilling Transportation, fuel for power generation, industrial uses High energy density, easy to transport Air pollution, carbon emissions, oil spills Carbon monoxide, nitrogen oxides, sulfur dioxide
    Natural Gas Extracted from gas wells through drilling or extracted alongside crude oil Power generation, heating, cooking, industrial uses Cleanest burning fossil fuel, high energy efficiency Methane emissions, can leak during production and transportation Carbon dioxide, nitrogen oxides
    Liquefied Petroleum Gas (LPG) Extracted during crude oil refining or extracted alongside natural gas Cooking, heating, transportation Clean burning, easy to store and transport Non-renewable, carbon emissions during production and transportation Carbon monoxide, nitrogen oxides
    Compressed Natural Gas (CNG) Extracted alongside crude oil or natural gas Transportation, cooking Lower emissions than petrol and diesel, cost-effective Requires specialized vehicles and refueling stations, less energy-dense than petrol and diesel Carbon monoxide, nitrogen oxides
    Shale Gas Extracted through hydraulic fracturing of shale rock formations Power generation, heating, cooking, industrial uses Abundant, reduces dependence on foreign oil, lower carbon emissions than coal Requires large amounts of water, potential for groundwater contamination, methane leaks Carbon dioxide, nitrogen oxides

    Way ahead for India’s oil and gas sector

    • Encourage and promote domestic oil and gas production: The government should continue to incentivize domestic oil and gas production to reduce dependence on imports and minimize price volatility. This could be achieved by introducing more investor-friendly policies, simplifying regulations, and exploring untapped reserves.
    • Develop a comprehensive energy policy: India needs to develop a comprehensive energy policy that outlines a clear vision for the sector’s development and growth. This policy should take into account environmental concerns, technological advancements, and future energy demands.
    • Increase investment in infrastructure: The government should invest in building critical infrastructure like pipelines, terminals, and storage facilities to improve supply chain efficiency and reduce transportation costs. This will also enable the country to tap into more remote oil and gas reserves.
    • Promote alternative sources of energy: Given the pressing need to reduce greenhouse gas emissions, India should promote alternative sources of energy such as solar, wind, and hydropower. This will not only help in meeting India’s climate goals but also reduce the dependence on fossil fuels.
    • Improve pricing transparency: India should work towards improving pricing transparency in the oil and gas sector. This will help to ensure a level playing field for all players, promote healthy competition, and enable consumers to make informed decisions.
    • Strengthen international partnerships: India should strengthen its partnerships with other countries, particularly those in the Gulf region, to ensure a stable supply of oil and gas. This will also help in diversifying sources of energy and reduce dependence on a few countries.
    • Foster innovation: The government should incentivize research and development in the oil and gas sector to encourage innovation and promote the use of advanced technologies. This could help in improving extraction techniques, reducing environmental impact, and optimizing resource utilization.

    Conclusion

    • India’s efforts to protect its consumers from international oil and gas price volatility are commendable. The recent APM gas pricing reforms will further advance this objective and promote more innovation and investments in exploration and production (E&P) and provide clarity for planned capex investments in gas-based sectors. With a growing demand for natural gas, India is well on its way to realizing a gas-based economy as part of its broader energy transition goals. The vision of a cleaner, greener, and more sustainable energy future for India is steadily becoming a reality.

    Mains question

    Q. Discuss the factors behind Oil and gas sector being volatile. What are the measures taken by the Indian government to protect consumers from oil and gas price volatility?

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    Also read:

    What should India do in the current international energy market?

  • Leveraging PDS to Improve Nutrition Security

    PDS

    Central Idea

    • The Department of Food and Public Distribution (DoF&PD), in particular the Food Corporation of India (FCI), must have heaved a sigh of relief that the procurement of wheat so far has crossed 20 million tonnes (MT), a notch higher than last year. Three states Punjab, Haryana and Madhya Pradesh have contributed more than 98 per cent to the central pool.

    Wheat production estimates

    • The Ministry of Agriculture and Farmers’ Welfare (MoA&FW) had earlier estimated the wheat production for this year to be 112 MT. However, the impact of unseasonal rains on wheat production has made the revised estimate uncertain.
    • Punjab: Punjab, one of the largest contributors to wheat procurement, is also in the process of estimating losses due to rough weather just before the harvest time. Despite the unseasonal rains, interactions with Punjab Agriculture University (PAU), market functionaries and farmers suggest that the production of wheat this year is higher than last year.
    • Uttar Pradesh: Uttar Pradesh produces almost double the amount of wheat (about 35 MT) than Punjab (about 18 MT). UP is estimated to procure 3.5 MT of wheat, but so far it has procured a meagre 0.12 MT. Unless it brings a surprise in May and June, the overall wheat procurement may stop well short of even 30 MT.

    Facts for prelims

    The benefits of Mulching of paddy straw

    • Increases organic carbon in the soil: Mulching of paddy straw increases the organic carbon content of the soil. It helps in retaining moisture in the soil and improves soil health.
    • Helps in reducing weed growth: Mulching acts as a magic as it helps in reducing the weed growth, conserves soil moisture, and provides essential nutrients to the soil.
    • Increases crop productivity: It helps in improving the fertility of the soil and in turn increases the productivity of the crops.
    • Reduces soil erosion: Mulching of paddy straw protects the soil from wind and water erosion.
    • Decreases the use of fertilizers: It helps in reducing the use of fertilizers as the organic matter from the mulch provides essential nutrients to the soil.
    • Promotes sustainable agriculture: Mulching promotes sustainable agriculture practices as it is an eco-friendly and cost-effective way of managing agricultural waste.

    PDS

    Challenges for providing nutritious food through PDS

    • Infrastructure and supply chain: There is a lack of proper infrastructure and supply chain to transport and store nutritious food items such as millets, pulses, and oilseeds. This leads to spoilage, wastage, and ultimately affects the quality of food provided through PDS.
    • Cost: Providing nutritious food items through PDS may increase the cost of the program, which can be a challenge for the government to sustain in the long run.
    • Awareness and demand: There is a lack of awareness among the general public about the benefits of nutritious food items and the need to include them in their diet. Also, there may not be enough demand for these items, leading to poor offtake and wastage.
    • Operational challenges: There are several operational challenges such as sourcing, storage, and distribution of nutritious food items, which need to be addressed for an effective PDS program.
    • Political interference: There may be political interference in the selection of food items to be included in PDS, leading to a focus on populist measures rather than on nutritious food items. This can undermine the effectiveness of the program.

    agriculture

    Nutrition security through PDS and a help to climate resilient agriculture

    • Introducing more nutritious food: The introduction of more nutritious food, such as millets, pulses, and oilseeds, in PDS can help achieve the twin objectives of nutrition and climate resilience.
    • Encouraging climate-resilient food: Encouraging the production of climate-resilient food crops like millets, pulses, oilseeds, etc., can help create a steady flow of nutritious food.
    • Upgrading fair price shops to Nutritious Food Hubs: At least 10% of fair price shops can be upgraded and declared as Nutritious Food Hubs (NFHs). These NFHs can have fortified, including bio-fortified, rice and wheat, millets, pulses, oilseeds (especially soyabean products with 40% protein), fortified milk and edible oils, eggs, etc.
    • Electronic vouchers for targeted beneficiaries: Consumers of PDS list may be given electronic vouchers (like an e-food coupon in a food court) that can be charged by the government three or four times a year.
    • Government assistance for upgrading NFHs: The NFHs can be upgraded with government assistance, creating demand for more diversified and nutritious food from the masses.
    • Capping the procurement of rice: The procurement of rice would have to be capped, starting with districts where the water table has been depleting alarmingly.
    • For example, Sangrur in Punjab has witnessed a fall of groundwater level by more than 25 meters during 2000-2019. Farmers of such districts could be incentivized to grow millets, pulses, oilseeds, etc., that are climate smart, use much less water and fertilizers, thus saving power and fertilizer subsidies.
    • Giving a special package for carbon credits: The Centre and the states need to join hands to give a special package for carbon credits for growing such crops. Farmers can be rewarded about Rs 10,000/acre (to be shared equally by the Centre and the state), as these crops would save that much fertilizer subsidy of the Centre and power subsidy of the state.

    Conclusion

    • The Department of Food and Public Distribution’s Chintan Shivir on leveraging PDS to offer more nutritious food is a great vision, but there are several operational challenges to provide a steady flow of these foods. Upgrading at least 10% of the fair price shops as Nutritious Food Hubs could create a demand for more diversified and nutritious food from the masses. However, capping the procurement of rice and incentivizing farmers to grow millets, pulses, and oilseeds that are climate-smart and use less water and fertilizers is necessary.

    Mains Question

    Q. How PDS can be leveraged to provided nutritious food and also help make Indian agriculture more climate resilient? Discuss along with the challenges

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    Also read:

    Food Security and Energy Crisis In The South Asian neighbourhood

     

  • National Manufacturing Innovation Survey (NMIS), 2021-22

    Central Idea: The Department of Science and Technology under the Ministry of Science & Technology has released the National Manufacturing Innovation Survey (NMIS) 2021-22.

    About National Manufacturing Innovation Survey

    Details
    Undertaken by DST and United Nations Industrial Development Organization (UNIDO)
    History First National Innovation Survey in 2011
    Focus Manufacturing competitiveness
    Purpose Innovation performance of Indian manufacturing firms
    Insights Enabling activities and identifying barriers to innovation
    Processes Examines innovation processes, outcomes, and barriers faced by firms
    State/Sector Evaluates performance of states and sectors in producing new products, services, and business processes
    Key manufacturing sectors 5 sectors: textiles; food & beverage; automotive; pharma; ICT.

     

    Components of the survey

    (1) Firm-level survey

    innovation

    • It captured data related to types of innovations and innovative measures taken by firms.
    • Includes: the process of innovation, access to finance, resources, and information for innovation, besides also recording the factors impacting the innovation activities in a firm.
    • One in four firms have successfully implemented an innovation in the observation period.
    • Over 80% of these firms benefitted significantly in expanding markets and production and reducing costs.

    (2) Sectorial System of Innovation survey

    innovation

    • It mapped the manufacturing innovation system and its role in achieving innovations in firms.
    • It measures the interactions between stakeholders of the innovation ecosystem, barriers to innovation, and the convergence or divergence of policy instruments in select 5 key manufacturing sectors important to the Indian economy.

    Key highlights

    • Karnataka is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
    • Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively.
    • Odisha, Bihar, and Jharkhand reported the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
    • Nearly three-fourths of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor process innovation.
    • However, nearly 80% of the firms that did report significant gains such as expanding markets and reducing production costs.

    Barriers identified

    • The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources.
    • Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialised States.

    Significance of the survey

    • It will help in the Make-in-India programme, specifically the Production Linked Incentive (PLI) schemes.
    • It will help to boost manufacturing in a variety of sectors, including electronics, pharmaceuticals, and automobiles.

     

     

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  • Sustainable Development Goals (SDGs): India’s Progress Analysis

    SDGs

    Central Idea

    • India’s Prime Minister Narendra Modi, while addressing the first meeting of Finance Ministers and Central Bank Governors under India’s G20 Presidency, expressed concern about the slowing down of Sustainable Development Goals (SDGs). Given India’s large population, the success of achieving these goals is crucial for global progress. While India has made progress towards achieving some SDG targets, there are concerns regarding others.

    SDGs

    India’s progress on SDG’s

    • Neonatal and under-five mortality: India is on target to meet the SDG indicators for neonatal and under-five mortality. Both indicators have substantially improved in the last five years.
    • Full vaccination: India is on target to meet the SDG indicator for full vaccination.
    • Improved sanitation: India is on target to meet the SDG indicator for improved sanitation. The country has made significant progress in this area in the last five years.
    • Electricity access: India is on target to meet the SDG indicator for electricity access.
    • Access to banking: The number of women having bank accounts has improved across a vast majority of the districts between the years 2016 and 2021.
    • Adolescent pregnancy: The SDG indicator for eliminating adolescent pregnancy has improved across a vast majority of the districts between the years 2016 and 2021.
    • Multidimensional poverty: The SDG indicator for reducing multidimensional poverty has improved across a vast majority of the districts between the years 2016 and 2021.
    • Women’s well-being and gender equality: India has made progress in increasing mobile phone access, with 93% of households having access to mobile phones. However, only 56% of women report owning a mobile phone.

    Facts for prelims

    Recent findings by National Family Health Survey

    • Multidimensional poverty declined: At a compounded annual average rate of 4.8 per cent per year in 2005-2011 and more than double that pace at 10.3 per cent a year during 2011-2021.
    • Declining child mortality: There are some issues with the 2011 child-mortality data, but for each of the 10 components of the MPI index, the rate of decline in 2011-2021 is considerably faster than in 2005-2011.
    • Average decline in overall indicators: The average equally weighted decline for nine indicators was 1.9 per cent per annum in 2005-2011 and a rate of 16.6 per cent per annum, more than eight times higher in 2011-2021.
    • Consumption inequality decline: Every single household survey or analysis has shown that consumption inequality declined during 2011-2021. This is consistent with the above finding of highly inclusive growth during 2011-2021.

    Lessons from COVID-19 Approach

    • Leadership: Strong political leadership and responsive administrative structure are critical to success, and India’s COVID-19 response demonstrated that a mission-oriented ethos that provides adequate support for accomplishing district-level SDGs is urgently needed.
    • Infrastructure and Coordination: India’s success with COVID-19 was largely possible both because of the existing digital infrastructure, as well as new, indigenous initiatives such as the Co-WIN data platform and the Aarogya Setu application. Following these examples, India must put in place a coordinated, public data platform for population health management.
    • Targeted delivery: A targeted SDG strategy delivered at scale must be executed with the same timeliness of India’s COVID-19 relief package. Key to this relief programme was a mix of spending to provide direct in-kind and economic support, as well as measures aimed at revitalising the economy, small businesses, and agriculture.

    Concerns regarding India’s progress towards achieving SDGs

    • Unequal progress across districts: While India is on target to meet 14 out of 33 SDG indicators, the progress is not uniform across all districts.
    • For example: neonatal and under-five mortality rates are on target for the country as a whole, but many districts are not on track to meet these indicators.
    • Pace of improvement: The current pace of improvement is not sufficient to meet the SDG targets for 19 out of 33 indicators.
    • For instance: despite a national policy push for clean fuel for cooking, more than two-thirds of districts remain off-target for this indicator.
    • Gender inequality: India is facing significant challenges in achieving gender-related SDG targets.
    • For example: no district in India has yet succeeded in eliminating the practice of girl child marriage before the legal age of 18 years. Also, despite the overall expansion of mobile phone access in India, only 56% of women report owning a mobile phone, with many districts remaining off-target for this indicator.
    • Multidimensional poverty: Although India has made progress in reducing multidimensional poverty, many districts are still off-track to meet this SDG indicator.
    • Environmental sustainability: India has made progress in some areas related to environmental sustainability, such as improved sanitation and access to electricity. However, the country is still off-target for indicators related to clean cooking fuel, water and handwashing facilities, and reducing greenhouse gas emissions.

    Way ahead

    • Implement targeted policies and programs that are aligned with the SDG goals, particularly for areas where progress has been slow or lacking.
    • Improve the digital infrastructure, and create a coordinated public data platform for population health management.
    • Ensure strong and sustained political leadership that is supported by a responsive administrative structure at all levels.
    • Prioritize and accelerate efforts to address gender inequality and women’s well-being.
    • Strengthen implementation and monitoring mechanisms to ensure timely and effective delivery of SDG policies and programs.
    • Foster partnerships between government, civil society, and the private sector to mobilize resources and expertise to achieve SDG targets.
    • Develop a decadal plan that outlines concrete steps and targets for achieving SDG goals in the next ten years.

    SDGs

    Conclusion

    • India needs to innovate a new policy path to achieve its SDG targets, especially those related to population health and well-being, basic quality infrastructure, and gender equality. India’s successful COVID-19 response has shown that it is possible to deliver at scale in such an ambitious and comprehensive manner. To achieve SDG targets, India needs a similar concerted, pioneering, and nationwide effort.

    Mains Question

    Q. India’s progress towards SDGs id often described as mixed progress. While there have been positive improvements, there are still concerns that needs to be addressed. Discuss along with a way ahead.

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    Also read:

    A recent analysis published in The Lancet has concluded that India is not on-target to achieve 19 of the 33 Sustainable Development Goals (SDGs) indicators.

     

  • Whether The Nuclear Power in India Should Be Phased Out?

    Nuclear

    Central idea

    • Germany has recently shut down its last nuclear power plant, and France, the nuclear powerhouse of the world, is struggling to replenish its stock of aging reactors. With solar and wind power becoming more popular globally, the question arises whether nuclear power, with its attendant concerns on cost and safety, remains a relevant option for a fossil-free future, particularly in India. The question here arises is that whether the nuclear power in India should be phased out?

    Global outlook for nuclear power

    • Nuclear power renaissance in Europe and US: A lot has happened in the last two years. Particularly after the Ukraine war, nuclear power is seeing a renaissance, even in Europe and the U.S.
    • China: China has anyway been surging ahead on nuclear power.
    • South Korea: South Korea’s new president has changed the energy policy and committed to increasing the share of nuclear power in the country’s energy mix to 30% by 2030.
    • Japan: Japan, which should have completely shut down reactors after the Fukushima (accident), is restarting them, 10 have been restarted following years of inspection and upgrading safety systems, and I believe that the plan is to start 10 more. Japan had to do that because it was otherwise dependent either on expensive, imported coal or on natural gas (LNG).
    • UK: Beyond Germany, the U.K. has said that without scaling up nuclear power, it won’t be possible to decarbonise the electricity sector.

    Facts for prelims

    Element Deposits in India Applications Advantages Disadvantages
    Uranium Jaduguda, Bhatin, Narwapahar, Banduhurang, Mohuldih and Turamdih in Jharkhand; Lambapur-Peddagattu in Telangana; Gogi in Karnataka; and Tummalapalle in Andhra Pradesh Electricity generation, nuclear weapons, nuclear medicine Low carbon emissions, efficient energy production, cost-effective Radioactive waste management, risk of nuclear accidents, non-renewable
    Thorium Kerala coast, Bihar, Jharkhand, Tamil Nadu, Odisha, and Rajasthan Electricity generation, nuclear weapons, nuclear medicine More abundant than uranium, low levels of radioactivity, more efficient energy production than uranium Requires a breeder reactor, expensive, currently not widely used

    Why nuclear power is considered low-carbon or green energy?

    • Low greenhouse gas emissions: Nuclear power plants do not produce carbon dioxide or other greenhouse gases during their operation, unlike fossil fuel plants that emit large amounts of carbon dioxide and contribute to climate change.
    • High energy density: Nuclear fuel contains a very high energy density, which means that a small amount of fuel can produce a large amount of energy. This makes nuclear power a very efficient and reliable source of energy.
    • Energy security: Nuclear power plants provide a stable and reliable source of energy, which can help to reduce dependence on fossil fuels and improve energy security.
    • Reduced air pollution: Nuclear power plants do not emit pollutants such as sulfur dioxide, nitrogen oxides, or particulate matter, which can have negative impacts on human health and the environment.
    • Land use: Nuclear power plants require much less land than renewable energy sources such as wind or solar power, which can help to conserve land and natural habitats.

    How Nuclear energy is also responsible for greenhouse gas emissions?

    • Nuclear energy itself does not emit greenhouse gases during its operation, but it does produce greenhouse gas emissions during the lifecycle of the plant, including mining, processing, and transportation of nuclear fuel.
    • The construction and decommissioning of nuclear power plants also produce greenhouse gas emissions. Additionally, nuclear power plants rely on fossil fuels for the transportation of nuclear fuel and the operation of auxiliary systems.
    • The greenhouse gas emissions associated with nuclear energy are significantly lower than those associated with fossil fuels, but they are not zero.

    Why is there resistance to nuclear energy?

    • Safety concerns: The risk of nuclear accidents, such as those that occurred at Chernobyl and Fukushima, have led to safety concerns about nuclear power plants. The potential for radioactive contamination and long-term health effects on the surrounding population have made many people wary of nuclear power.
    • Nuclear proliferation: The possibility that nuclear power could be used to develop nuclear weapons is a concern for many countries, particularly those with nuclear weapons programs themselves.
    • Waste disposal: The radioactive waste produced by nuclear power plants is dangerous and must be stored safely for hundreds of thousands of years. Finding a safe and secure method of storing this waste is a major challenge.
    • Cost: Nuclear power plants are expensive to build and maintain. Cost overruns and delays are common, and the cost of decommissioning nuclear power plants at the end of their life can be significant.
    • Public perception: Nuclear power has a negative public image in many countries, with many people associating it with danger and disaster.

    Facts for Prelims

    Uranium Thorium
    Atomic number 92 90
    Natural isotopes U-238, U-235, U-234 Th-232
    Radioactivity Highly radioactive Weakly radioactive
    Fissile U-235 is fissile Not fissile
    Nuclear weapons Can be used to create nuclear weapons Cannot be used to create nuclear weapons
    Nuclear power Widely used for nuclear power Not commonly used for nuclear power
    Decay products Produces many long-lived and dangerous decay products Produces fewer and less dangerous decay products
    Availability Limited reserves Abundant reserves
    Waste disposal Radioactive waste remains dangerous for thousands of years Radioactive waste decays faster and becomes less dangerous
    Environmental impact Can have significant environmental impact Considered less environmentally damaging than uranium mining
    Health effects Exposure can cause serious health effects, including cancer Less harmful to human health than uranium

    What are the concerns over radioactivity from spent fuel?

    • Long-term storage: Spent nuclear fuel remains radioactive for thousands of years and requires careful handling and storage to prevent any potential exposure to humans and the environment.
    • Accidents: Accidents during transportation or storage of spent nuclear fuel can result in the release of radioactive material, which can cause severe environmental damage and health risks to humans and other living organisms.
    • Nuclear proliferation: Spent nuclear fuel can also be used to create nuclear weapons, and there are concerns about the risk of nuclear proliferation and the potential use of these weapons.
    • Disposal: The long-term disposal of spent nuclear fuel is also a major challenge, as it requires finding safe and secure locations to store the material for thousands of years.

    Why India should never consider phasing out nuclear power?

    • Limited growth potential for hydropower: India has limited growth potential for hydropower due to factors such as conserving biodiversity, rehabilitating and compensating landowners, and seismological factors in the Himalayas. Therefore, nuclear power is an alternative to coal-based power plants.
    • Net-zero emissions goal: To achieve the goal of net-zero carbon emissions by 2070, India needs a combination of small modular reactors and large reactors. Therefore, multiple companies need to be allowed to operate nuclear reactors rather than a monopoly by the Nuclear Power Corporation of India Limited.
    • Firm, reliable and low-carbon power: Nuclear power is a source of firm, dispatchable power that is low carbon and reliable. It can provide a constant and stable source of electricity, especially when wind and solar energy are intermittent or variable.
    • Access to nuclear fuel: India has limited access to enriched uranium, which is required to fuel nuclear reactors. However, the country’s nuclear program is based on working around its limited supply of enriched uranium, and it has not faced any significant issues in accessing nuclear fuel.
    • Portfolio of technologies: A mix of supply-side and demand-side technologies is required to solve energy problems. Nuclear power can be a part of the portfolio of technologies that India needs to achieve its energy goals. Therefore, policy frameworks should be enabling rather than technology-specific.

    Mains Question

    Q. Do you agree with the statement that ‘Without scaling up nuclear power, it won’t be possible to decarbonise the electricity sector.

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  • Moving Beyond Vande Bharat: Performance of Indian Railways

    Vande Bharat

    Central Idea

    • The Indian Railways has been in the news lately, with the launch of Vande Bharat trains and their successive introduction in different parts of the country. However, amid the publicity surrounding these new trains, the larger picture and serious issues confronting the Indian Railways are being overlooked. This article aims to evaluate the performance of the Indian Railways, especially in the freight and passenger sectors, and highlights the need for more relevant metrics.

    Facts for prelims: Vande Bharat Express

    Vande Bharat Express

    • Vande Bharat Express, also known as Train 18, is a semi-high-speed, fully air-conditioned train in India that runs on electric traction. It is named after the country’s national slogan “Vande Mataram” and was designed and manufactured by the Integral Coach Factory in Chennai, India.
    • The train is equipped with modern amenities such as Wi-Fi, an infotainment system, and a GPS-based passenger information system, among others.
    • It has a maximum speed of 180 km/h and is considered to be one of the fastest trains in India.
    • It is designed to be an energy-efficient and eco-friendly train, and is expected to provide a comfortable and safe travel experience to passengers.

    Performance and prospect of the Indian Railways, especially in the freight and passenger sectors

    1. Investment in Indian Railways: Since the merger of the Railway Budget with the General Budget in 2017, there has been a shift towards ramping up investments in the Indian Railways. The Annual Plan outlay for the Railways has increased from ₹1,09,935 crore in 2016-17 to ₹2,60,200 crore in the Budget for 2023-24, an increase of 137%. While this unprecedented level of investment is welcome, it must translate into concrete progress towards capacity building, and not just be limited to inputs.
    2. Freight Sector:
    • Rail share of freight traffic: The National Rail Plan 2030 (NRP) aims to raise the rail share in freight traffic vis-à-vis roadways from 27% to 45% by 2050. However, the rail share of freight carried reduced from 51.5% in 2008-09 to 32.4% in 2018-19 for leads over 300 km.
    • Commodity diversification: Almost the entire increase in volume of traffic carried by rail over the decade 2008-09 to 2018-19 has been in short lead traffic (leads up to 300 km) and 55% of the increase was through the transport of just one commodity, viz. coal. As yet, there is no evidence of higher levels of traffic being achieved concurrently with diversification of commodities carried or an increase in rail share vis-à-vis road transport.
    • Average speed of goods trains: The NRP aims to raise the average speed of goods trains to 50 kilometres per hour from the present 25 kmph, which is expected to increase efficiency and reduce transportation costs.
    • Tariff rates for freight: The NRP also calls for a concurrent reduction in tariff rates for freight by up to 30%.
    1. Passenger Sector: Punctuality is a crucial operational index for passenger trains. While published statistics of punctuality usually are above 90%, these figures are arrived at with a dose of adjustment and only the destination arrival time is considered irrespective of the fact that a train might have been off schedule en route at all the important intermediate stations. The Indian Railways should aim to be at least within five minutes (without any adjustment) of the scheduled time.

    Vande Bharat

    Facts for prelims (Conceptual): Why freight trains are switching to aluminium wagons?

    • Consume less energy and reduce carbon emissions: Aluminium trains consume less energy and the metal is recyclable. It is estimated that switching to aluminium will save 1,500 tonnes of carbon emissions a year.
    • Lighter as compared to steel: They are lighter by up to 30% compared to stainless steel coaches. These coaches, being lighter than stainless steel ones, are preferred for higher speed systems.
    • Less time to manufacture: Aluminium trains take less time to manufacture and thus can help speed up capacity for production.
    • Low haulage cost and high payload capacity: They offer low haulage cost and higher payload, better fuel efficiency and lower pollution levels.
    • Expected to improve freight transportation: The new metal trains will help the Railways hike its share in overall freight transportation from the current 18%.

     Need for an annual report

    • Report on the lines of the annual Economic Survey: Government should consider tabling an annual report on the performance of the Railways in Parliament on the lines of the annual Economic Survey prepared by the Finance Ministry ahead of the General Budget.
    • Not just for publicity pamphlet but a resource for policymakers: This report, unlike a publicity pamphlet like the Indian Railways Year Book, should be an internal performance audit that should serve as a valuable resource for policymakers, serious students and also researchers in the field of rail transport.

    Way ahead

    • International standards in punctuality: If stations in the Indian Railways network can be remodelled to international standards, perhaps it is time to aim for international standards in punctuality of trains as well.
    • Evolve an index of punctuality: It is high time to move away from the traditional concept of destination punctuality and evolve an index of punctuality that will also reflect the punctuality at select intermediate stations, at least for all mail/express trains.
    • Passenger experience: The focus should be to improve overall passenger experience, not merely statistics.
    • Other areas for assessment: There are several other areas that need critical analysis, such as financial performance, physical performance, safety, organizational/human resource issues, project execution, customer relations, and the effect of the dedicated freight corridors on the Indian Railways system capacity.

    Indian Railways

    Conclusion

    • The Indian Railways is the prime transporter and the largest public undertaking in the country, and it is crucial that its performance is evaluated using relevant metrics. While the introduction of Vande Bharat trains is a success story, it must not be the only focus. The focus should be on improving overall passenger experience and performance in the freight sector, and not merely on statistics.

    Mains Question

    Q. The consecutive introduction of Vande Bharat trains is a success story so far. In this backdrop Evaluate the performance of Indian railways and suggest measures to further improve the passenger experience.

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  • [pib] Cabinet approves the Policy for the Medical Devices Sector

    medical device

    Central idea: The Union Cabinet, chaired by Hon’ble Prime Minister, approved the National Medical Devices Policy, 2023.

    National Medical Devices Policy, 2023

    • The Policy, 2023 aims to facilitate an orderly growth of the medical device sector to meet the public health objectives of access, affordability, quality, and innovation.
    • The policy lays down a roadmap for accelerated growth of the medical devices sector to achieve various missions.

    Objectives

    • The policy aims to make the industry competitive, self-reliant, resilient, and innovative.
    • It focuses on meeting the healthcare needs of not only India but also the world.
    • It aims to accelerate the growth of the medical devices sector.
    • It takes a patient-centric approach to meet the evolving healthcare needs of patients.
    • It provides support and directions to the medical devices industry to achieve these goals.

    Strategies to Promote Medical Device Sector

    The medical devices sector will be facilitated and guided through a set of strategies that cover six broad areas of policy interventions:

    Key measures and actions
    1. Regulatory Streamlining Enhance ease of doing research and business, balance patient safety with product innovation, create a Single Window Clearance System for licensing of medical devices, enhance the role of Indian Standards like BIS, and design a coherent pricing regulation.
    2. Enabling Infrastructure Establish and strengthen large medical device parks and clusters equipped with world-class common infrastructure facilities in proximity to economic zones with requisite logistics connectivity.
    3. Facilitating R&D and Innovation Promote research and development in India, establish centres of excellence in academic and research institutions, innovation hubs, and support for startups.
    4. Attracting Investments in the Sector Encourage private investments, funding from venture capitalists, and public-private partnerships, in addition to existing schemes and interventions like Make in India, Ayushman Bharat program, Heal-in-India, and Start-up mission.
    5. Human Resources Development Ensure a steady supply of skilled workforce across the value chain by leveraging available resources in the Ministry of Skill Development and Entrepreneurship, supporting dedicated multidisciplinary courses for medical devices in existing institutions, and developing partnerships with foreign academic/industry organizations to develop medical technologies.
    6. Brand Positioning and Awareness Creation Create a dedicated Export Promotion Council for the sector under the Department, initiate studies and projects for learning from best global practices of manufacturing and skilling system, promote more forums to bring together various stakeholders for sharing knowledge, and build strong networks across the sector.

     

    Medical devices sector in India: A quick recap

    • The medical devices sector in India is an essential and integral part of the Indian healthcare sector.
    • The sector has contributed significantly to the domestic and global battle against the COVID-19 pandemic through the large-scale production of medical devices & diagnostic kits.

    Growth potential in India

    • The market size of the medical devices sector in India is estimated to be $11 billion (approximately, ₹ 90,000 Cr) in 2020, and its share in the global medical device market is estimated to be 1.5%.
    • The Indian medical devices sector has enormous potential to become self-reliant and contribute towards the goal of universal health care.

    Current initiatives in this sector

    • The Government of India has initiated the implementation of the PLI Scheme for medical devices.
    • It supports for setting up of four Medical devices Parks in the States of Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh.

     

     

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  • India’s sustainable jet fuel may get ASTM certified in 2023

    fuel

    Central idea

    • The Indian Institute of Petroleum (IIP) has developed sustainable aviation fuel (SAF) using home-grown technology from cooking oil and oil-bearing plants.
      • SAF is also being produced from non-petroleum-based renewable feedstocks, municipal solid waste, woody biomass, fats/greases/oils, and other feedstocks.

    About ASTM certification

    • ASTM International is an international standards organization that develops and publishes technical standards for a wide range of materials, products, systems, and services.
    • It was formerly known as the American Society for Testing and Materials and is based in the United States.
    • The organization has over 30,000 members from more than 140 countries, including scientists, engineers, and industry professionals.
    • The standards cover industries such as construction, petroleum, medical devices, and consumer products.

    SAF under ASTM Certification

    • Two of ASTM standards related to aviation fuel are ASTM D4054 and ASTM D7566.
    • ASTM D4054 sets the requirements for qualifying aviation turbine fuels.
    • ASTM D7566 sets the requirements for certifying fuels for use in commercial aviation.

    Present use of SAF

    • The Indian Air Force received provisional certification in November 2021 to use SAF on their test flights, subject to case-by-case approval by the aircraft manufacturer concerned.
    • However, it is yet to be internationally certified for use in commercial airlines in India.

    SAF production in India

    • The Mangalore Refinery and Petrochemicals Ltd is setting up the first SAF plant, which is expected to come online by early 2025.
    • However, two more SAF plants are expected to be set up by other refineries, probably by 2025-26.
    • The Mangalore Refinery can produce 20 tonnes of SAF per day, meaning about 7,000 tonnes per year.
    • However, to achieve even a per cent of blending of SAF in India, around 60,000 tonnes per year are required.

    Way forward

    • Demand for bio-jet fuel must be increased through a national policy, along the lines of the National Biofuel Policy, for it to be commercially scaled and to accelerate production.
    • A nodal agency to implement this policy should be formed to bring together energy, transportation and agriculture sectors together under one roof.
    • Mapping the sources of the various feedstock could aid this policy.

     

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  • Virtual Digital Assets Regulation: India’s progressive Approach

    Central Idea

    • The regulation of new technologies can be a challenging task, as their rapid and constant change can create unintended consequences. History is full of examples where innovations were curtailed, such as the infamous Red Flag Act of the UK that ended up strengthening the motorcar industry in Europe. Today, India’s recent notification on anti-money laundering provisions for virtual digital assets businesses and service providers is a step in the right direction.

    What is mean by Virtual Digital Assets?

    • Digital representations of value: Virtual Digital Assets refer to digital representations of value that can be transferred, stored, or traded electronically. These assets may include cryptocurrencies, tokens, or other forms of digital assets that are secured using cryptography and blockchain technology.
    • Intangible: Virtual digital assets are intangible and exist only in the digital realm, but they can be used as a medium of exchange, store of value, or investment.
    • Decentralized nature: Virtual digital assets are typically decentralized and operate independently of central authorities, making them appealing to many users. However, their decentralized nature also makes them susceptible to illicit activities such as money laundering and terrorism financing, which has led to the need for regulations and oversight.

    How Virtual digital assets are linked with money laundering?

    • Anonymity: Virtual digital assets offer a degree of anonymity, which can be exploited by criminals to conceal their identities and activities.
    • Lack of regulations: The lack of comprehensive regulations in the virtual digital asset space makes it easier for criminals to launder money using these assets.
    • Cross-border transactions: Virtual digital assets can be used to conduct cross-border transactions with ease, making it easier for criminals to move money across jurisdictions and avoid detection.
    • Decentralized nature: The decentralized nature of virtual digital assets means that there is no central authority regulating the transactions, making it difficult to track and monitor illicit activities.
    • High liquidity: Virtual digital assets are highly liquid and can be easily converted into other forms of currency, making it easier for criminals to move money around and launder their proceeds.
    • Complex transactions: Some virtual digital asset transactions can be highly complex, making it difficult to trace the source of the funds and detect money laundering activities.

    India’s approach to regulate virtual digital assets

    • Prevention of Money Laundering Act (PMLA) Act of 2002: PMLA enacted in 2002 to prevent and combat money laundering and related crimes. The act provides for the confiscation of property derived from, or involved in, money laundering, and also imposes penalties on individuals and entities involved in money laundering activities.
    • Extension of anti-money laundering provisions: India’s Union Finance Ministry, in a gazette notification, extended anti-money laundering provisions to virtual digital assets businesses and service providers, under the Prevention of Money Laundering Act (PMLA) Act of 2002.
    • Mandatory registration: Virtual digital assets platforms carrying out activities such as exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets, and participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset, must register as a reporting entity with the Financial Intelligence Unit-India.
    • Implementation of know your customer and record-keeping measures: Reporting entity platforms such as CoinSwitch are now mandated to implement know your customer, record and monitor all transactions, and report to the Financial Intelligence Unit-India as and when any suspicious activity is detected.
    • Standardisation of norms: By extending anti-money laundering provisions to virtual digital assets, a framework has been created for virtual digital assets platforms to diligently monitor and take actions against malpractices, making the Indian virtual digital assets sector more transparent.
    • Compliance with global guidelines: The anti-money laundering provisions in India are in line with global guidelines put forward by the International Monetary Fund and the Financial Action Task Force.
    • Reconsideration of tax rates: With the mitigation of money laundering and terror financing risks through the PMLA notification, there is an opportunity for India to reconsider its tax treatment of virtual digital assets, which is currently an outlier both domestically and internationally.

    How India can leverage G20 presidency?

    • Spearheading critical discussions on establishing a global regulatory framework for virtual digital assets.
    • Sharing its leadership and experience on this issue with other G20 nations.
    • Considering the steps taken by other G20 nations, such as Japan and South Korea’s establishment of a framework to license Virtual Asset Service Providers (VASPs), and Europe’s passing of the Markets in Crypto-Assets (MiCA) regulation by the European Parliament.
    • Using the G20 platform to coordinate and provide greater oversight on the domestic virtual digital assets ecosystem, which could provide much-needed assurance to everyday users as well as regulators.

    Conclusion

    • India’s measured approach to regulating virtual digital assets is a step in the right direction. With India’s presidency of the G-20, it is an opportunity to establish a global regulatory framework for virtual digital assets. A progressive regulatory framework will establish India’s virtual digital assets leadership and instill the animal spirit in India’s innovation economy.

    Mains Question

    Q. What do you understand by mean by Virtual Digital Assets? Establish a link between virtual digital assets and money laundering. Discuss how India is taking measures to regulate virtual assets?

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