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Subject: Economics

  • Ambiguities in India’s Nuclear Liability Law

    nuclear

    Central idea: The article discusses how the issues regarding India’s nuclear liability law are holding up the plan to build six nuclear power reactors in Maharashtra’s Jaitapur, which is the world’s biggest nuclear power generation site under consideration at present.

    Law governing nuclear liability in India

    Ans. Civil Liability for Nuclear Damage Act (CLNDA), 2010

    Provision Description
    Purpose of CLNDA To provide a speedy compensation mechanism for victims of a nuclear accident
    Liability on operator Strict and no-fault liability on the operator of the nuclear plant, where the operator will be held liable for damage regardless of any fault on its part
    Amount of liability In case of damage caused by an accident, the operator will have to pay ₹1,500 crore
    Insurance or financial security for liability The operator is required to cover liability through insurance or other financial security
    Government liability in case of excessive claims If the damage claims exceed ₹1,500 crore, the CLNDA expects the government to step in and has limited the government liability amount to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore

     

    The concept of Supplier Liability

    • The CLNDA introduced the concept of supplier liability in addition to operator liability in India’s civil nuclear liability law.
    • The international legal framework on civil nuclear liability, including the annex of the CSC, is based on the exclusive liability of the operator of a nuclear installation.
    • CLNDA Section 17(b) allows the operator of the nuclear plant to exercise the right of recourse against the supplier in case of a nuclear incident resulting from an act of the supplier or their employee, including the supply of defective equipment or materials.

    Why is it the issue in Nuclear Deals?

    • Undue liability: Foreign and domestic suppliers have been hesitant to enter into nuclear deals with India due to the country’s unique liability law, which allows suppliers to be held liable for damages.
    • Lack of clarity: on how much insurance needs to be set aside in case of damage claims and the potential for unlimited liability have been major concerns for suppliers.
    • Unlimited liability: Suppliers have taken issue with two specific provisions in the law – Section 17(b) and Section 46 – which expose them to liability beyond that of the operator of the nuclear plant. Section 46 potentially allows civil liability claims to be brought against both the operator and suppliers through other civil laws such as the law of tort, further exposing suppliers to unlimited amounts of liability.

    Existing projects in India

    • The Jaitapur nuclear project has been delayed for over a decade.
    • India has signed civil nuclear deals with the US, France, and Japan, but the only foreign presence in India is that of Russia in Kudankulam, which predates the nuclear liability law.
    • The government has stated that the Indian law is in line with the Convention on Supplementary Compensation (CSC).

    Government’s stand

    • The Indian law is in line with the Convention on Supplementary Compensation (CSC).
    • However, legal experts have pointed out that suppliers can be sued if defective equipment is provided or if it can be established that the damage resulted from an act of intent.
    • It would not be sound public policy if the Nuclear Power Corporation of India Limited (NPCIL) waived its right to recourse in the contract, despite the law providing for such recourse.

    Conclusion

    • The issues regarding the liability law would be resolved before French President Emmanuel Macron’s visit to India, which was first scheduled for March but has been pushed to September.

     

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  • Only half PMJDY insurance claims settled in 2 years

    pmjdy

    Central idea: In an RTI reply, it is revealed that only 329 claims out of 647 filed were settled in the last two financial years under the Pradhan Mantri Jan Dhan Yojana (PMJDY).

    What is PM Jan Dhan Yojana (PMJDY)?

    • The PMJDY is a financial inclusion program launched by the Indian government in 2014.
    • It is National Mission for Financial Inclusion to ensure access to financial services, namely, a basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.
    • Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.

    Benefits under PMJDY

    • One basic savings bank account is opened for unbanked person.
    • There is no requirement to maintain any minimum balance in PMJDY accounts.
    • Interest is earned on the deposit in PMJDY accounts.
    • Rupay Debit card is provided to the account holder.
    • Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
    • An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.

    Why in news?

    • In the financial year 2021-22, 341 claims were received for accident insurance cover under the PMJDY scheme.
    • Out of these, 182 claims were settled and 48 were rejected.
    • No information was provided on the status of the remaining 111 claims.

    Is PMJDY a success?

    • Dormancy of accounts: The PMJDY scheme has led to an increase in the number of bank accounts in rural areas, but this has not necessarily led to a corresponding increase in transactions due to limited transaction history of many account holders.
    • Low or no transactions: Insurance coverage for the account holder is linked to their transaction history, and many accounts remain frozen due to lack of transactions, taking several weeks or months to reactivate.
    • False promise of overdraft: The promised overdraft facility of Rs 5000 for new account holders has not been provided as promised, leading to scepticism about the scheme’s success.
    • Payments bottleneck: The lack of proper connectivity, electricity, internet, and ATM facilities in rural areas has hindered the activation of RuPay cards and PIN numbers, which should have been considered before implementing such a large-scale program.

     

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  • Tamil Nadu’s Manamadurai Pottery gets GI Tag

    pot

    The Manamadurai pottery recently earned a Geographical Indication (GI) tag.

    Manamadurai Pottery

    • The Vaigai river enriches the clay used for the Manamadurai pottery. Pot making requires expertise as the bottom has to be perfectly round.
    • The right proportion of mud, clay and heating makes this product very strong. The main raw materials for making these pots are soil and water.
    • The sand, collected from different places of the district, is used for making pottery and dried for two days. The particles of the mud get separated by sieving.
    • The slurry is mixed with the sand and lead and graphite are added to the mixture to improve the quality.
    • This mixture is now rich in calcium lime, ash, red lead, sodium silicate, manganese, iron, and plasticizing. The pot is also painted in different colours.

    What makes these pots unique?

    • A unique type of clay is sourced from water bodies like Nedunkulam, Nathapurakki, Sundaranadappu, Seikalathur to make these pots.
    • While making these pots, the five elements of nature namely earth, water, fire, sun and air are used.
    • The basic material for pottery is mud, which represents the earth. Mud is mixed with water, another element of nature.
    • This is followed by baking in fire, adding the third element.
    • The air percolates through the pores in the clay, marking the fourth element.
    • And finally, the cavity enclosed by the pot or any related article represents space.

    Back2Basics: Geographical Indication (GI)

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.

     

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  • The Brain Economy: Navigating a New World

    Brain Economy

    Central Idea

    • The nature of labor has changed drastically in the last century, moving from physical labor to skill-based labor to brain-based labor. Technology is driving this change and reshaping industries, and we must adapt to this new reality to stay globally relevant. We need to move away from outdated stereotypes of evil corporations and embrace technology to facilitate meaningful dialogue around the trade-offs in the brain economy.

    Brain Economy

    What is mean by Brain Economy?

    • Knowledge-based economy: The Brain Economy refers to the shift towards a knowledge-based economy where the primary source of economic growth is driven by innovation and creativity, and the ability to generate, process, and use knowledge effectively.
    • In contrast with labour intensive economy: It is often contrasted with previous economies, such as the Industrial Economy and the Agricultural Economy, which were based on physical labor and the production of tangible goods

    “Every successful innovation is built on a graveyard of failures”

    Unlimited Capacity of Technology

    • The technology will continue to advance and develop beyond just the fields of software, artificial intelligence, and data analytics.
    • It will also spread rapidly across other fields such as brain sciences, which includes the study of the brain and its functions; quantum computing, which involves the use of quantum mechanics to perform calculations; genetic engineering, which involves the manipulation of DNA to create new organisms or modify existing ones; 3D printing, which is the process of creating physical objects from digital models; nanotechnology, which involves the manipulation of matter on a molecular or atomic scale.
    • The combination of these technologies will lead to new and innovative solutions in various industries.

    Potential benefits of the brain economy

    • Increased Innovation: Brain-based work is about rapid innovation and creation, driven by technology. This can lead to new products, services, and technologies that can enhance people’s lives.
    • Higher Productivity: With advancements in technology and automation, the brain economy has the potential to significantly increase productivity and efficiency.
    • Improved Quality of Life: Brain-based work can create jobs that are less physically demanding and more intellectually stimulating. This can lead to an improved quality of life for those who work in the brain economy.
    • Economic Growth: The brain economy has the potential to fuel economic growth by creating new industries and opportunities for businesses and entrepreneurs.
    • Increased Collaboration: The brain economy requires collaboration across different fields, disciplines, and cultures. This can lead to increased cooperation and understanding among people from diverse backgrounds.
    • Social Progress: Technology and brain power can be used to address social and environmental challenges, such as poverty, inequality, climate change, and healthcare.
    • Flexibility: With technology, brain-based work can be done from anywhere, at any time, providing greater flexibility for workers and businesses.
    • Access to Information: Technology has made it easier than ever to access information and knowledge, which can help to create a more informed and educated society.
    • Personal Development: Brain-based work requires continuous learning and personal development, which can lead to increased self-awareness, creativity, and adaptability.

    Brain Economy

    Challenges for the brain economy

    • Inequality: The brain economy has the potential to exacerbate inequality by assigning exponentially differential values to body, skill, and brain. This can lead to a widening gap between those who have access to education and training in advanced technology and those who do not.
    • Job displacement: The rise of the brain economy may result in the displacement of jobs that require physical labor or lower levels of skill, leading to job losses in certain sectors. This may also require significant retraining and upskilling of workers in order to adapt to the new demands of the economy.
    • Ethical dilemmas: As technology continues to evolve and become more integrated into the brain economy, ethical dilemmas around privacy, inclusivity, fairness, and the impact on social issues such as gender parity and wealth sharing may arise.
    • Regulatory challenges: The fast-paced nature of technology development in the brain economy may pose regulatory challenges for policymakers and regulators. There may be a need for more agile and responsive regulatory frameworks to keep pace with technological developments.
    • Access to technology: Not everyone may have access to the technology required to participate in the brain economy, leading to a digital divide and further exacerbating inequality.
    • Societal impacts: The widespread adoption of technology in the brain economy may have significant societal impacts, such as changes to the nature of work, social relationships, and human behavior. It will be important to monitor these impacts and take steps to mitigate any negative effects.
    • Environmental impact: The growth of the brain economy may lead to increased energy consumption and environmental impact, particularly as new technologies such as quantum computing and genetic engineering become more prevalent. It will be important to consider the environmental impact of these technologies and take steps to mitigate any negative effects.

    How India can balance Brain economy and concerns associated with it?

    • Encourage innovation: The government should encourage innovation and research in emerging technologies, such as artificial intelligence, quantum computing, and biotechnology, by providing funding and incentives to startups, universities, and research institutions.
    • Promote digital literacy: The government should promote digital literacy and technology education at all levels of education to equip citizens with the necessary skills to participate in the brain economy.
    • Ensure regulatory compliance: The government should ensure that emerging technologies are developed and deployed in compliance with ethical, legal, and social norms. This includes establishing regulatory frameworks, guidelines, and standards for emerging technologies.
    • Invest in infrastructure: The government should invest in physical and digital infrastructure, such as broadband networks, data centers, and cloud computing, to support the growth of the brain economy.
    • Foster collaboration: The government should foster collaboration between academia, industry, and government to accelerate innovation and create new opportunities for economic growth.
    • Protect workers’ rights: The government should ensure that workers in the brain economy are protected by labor laws, including social security benefits, health insurance, and fair wages.
    • Address inequality: The government should address the growing inequality in the brain economy by investing in education, training, and social safety nets to ensure that all citizens can participate in the new economy. This includes measures to bridge the urban-rural divide, gender gap, and socio-economic disparities.

    Conclusion

    • In a country the size of India, it’s impossible to transition everyone to the brain economy overnight. The biggest component of the body economy in India is agriculture. We need our agriculture to be technology-enabled, not body driven. The bigger issue of inequality is the inequality between nations. In the brain economy, the alternative to technology and innovation is total irrelevance. To be a globally relevant player, India needs to embrace the concept of this new world of the brain economy, adapt its mindset and appropriate its resources accordingly.

    Mains Question

    Q. What do you understand by mean Brain Economy? Discuss the potential advantages and challenges of Brain economy in India and suggest a way ahead.

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  • Rs 2,913 Cr from PSEs to PM CARES Fund

    pm cares

    Government-run listed firms have contributed at least Rs 2,913.6 crore between 2019-20 and 2021-22 to the controversial Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund.

    About PM CARES Fund

    • The PM CARES Fund was created on 28 March 2020 following the COVID-19 pandemic in India.
    • The fund will be used for combat, containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
    • The PM is the chairman of the trust. Members will include the defence, home and finance ministers.
    • The fund will also enable micro-donations. The minimum donation accepted is ₹10.

    Issues over PM-CARES Fund

    • No defined purpose: It is deliberately ignored while a new, controversial, unanswerable, and ‘non-accountable vehicle is created; its character is not spelt out till today.
    • Non-accountable: The government seems to consider statutory provisions for enquiry and information seeking to be embarrassing obstacles.
    • Centralization of donations: It centralises the collection of donations and its utility, which is not only against the federal character but also practically inconvenient. The issue is seeming, the trusteeship of the fund.

    Questions and gaps

    • Law/statute: The PM CARES Fund was neither created by the Constitution of India nor by any statute.
    • Authority: If that is the case, under what authority does it use the designation of the Prime Minister, designated symbols of the nation, the tricolour and the official (gov.in) website of the PMO, and grant tax concessions through an ordinance.
    • Collection and dispensation: The amount received by the Fund does not go to the Consolidated Fund of India. If it goes to the CFI, it could have been audited by the CAG.
    • Uncontrolled: The This Trust is neither intended to be or is in fact owned, controlled or substantially financed by any instrumentality of the any govt even being chaired by the PM.

    Issue over tax benefits

    • Income tax: An ordinance was promulgated to amend Income Tax Act, 1961 and declare that the donations to the PM CARES Fund “would qualify for 80G benefits for 100% exemption”.
    • CSR Funds: It will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
    • Foreign donations: It has also got exemption under the FCRA [Foreign Contribution Regulation Act] and a separate account for receiving foreign donations has been opened.

    What can be inferred from all these?

    • The Centre now considers it as another obstacle and has created a new trust with the Prime Minister and his Ministers only.
    • The manner in which the PM CARES Fund was set up — with its acronym created to publicise the point that the PM cares for people — shows a bypassing of the statutory obligations of a public authority.

    Query and response: Again ironical

    • After initial denials, the Government has conceded it to be a public charitable trust, but still maintains that it is not a ‘public authority’.
    • The point is that the PMO operates the Fund, but says it cannot supply any information about the PM CARES Fund because it is not a public authority.

    Severe interpretations: Is it an Office of Profit?

    • If the PM CARES Fund is unconnected with the Government, then the Fund could become an office of profit.
    • And that could disqualify him and the three Ministers from holding those constitutional offices.

    Conclusion

    • In order to uphold transparency, the PM CARES Fund should be declared as a Public Authority under the RTI Act, and all RTI queries answered truthfully.
    • The fund should be designated as a “public authority” under Section 2(h) of the RTI Act.

     

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  • Rural Real Wage Growth In India: The Importance of Accurate Data analysis

    Central Idea

    • Rural real wage growth is a crucial indicator of the well-being of individuals, particularly the poor, in India. Jean Dreze, a respected economist claims that rural real wage growth in India has been sluggish despite rapid economic growth. However as per Surjit Bhalla another economist, Dreze’s findings are based on weak statistical analysis and incomplete data. Surjit Bhalla’s and presents his own findings, which suggest higher wage growth rates for construction workers, non-agricultural laborers, and agricultural laborers.

    Contrast results for instance

    • For construction workers, Dreze obtains a rate of growth (CAGR) of just 0.2 per cent (actually 0.15 per cent); However, CAGR stands at eight times larger at 1.2 per cent.
    • For non-agricultural labourers (porters and loaders) the same yawning divergence: Dreze obtains 0.3 per cent, whereas it stands 1.2 per cent, and for agricultural labourers, 0.9 per cent vs 1.5 per cent.

    What is CAGR?

    • CAGR stands for Compound Annual Growth Rate. It is a measure used to calculate the average growth rate of an investment over a certain period of time, assuming that the investment has grown at a steady rate each year.
    • It takes into account the effect of compounding, which means that the investment’s growth in one year is added to the base value of the investment, and the total amount is then used to calculate growth for the next year.
    • CAGR is often used in finance to compare the performance of different investments or to forecast future growth.

    Why are the two results so different?

    • Differences in Method of Estimation: Dreze uses semi-log regression on eight observations to estimate the compound annual growth rate (CAGR) for each of three male occupations. His estimate of CAGR is not even significant at the 11 per cent level of confidence for two of these occupations – construction and non-agricultural laborers. Dreze does not uses a population-weighted average of year-on-year growth for each of the 38 sex-occupation categories to estimate CAGR accurately.
    • Differences in Time Period of Analysis: Surjit Bhalla also criticizes Dreze’s chosen time period of analysis, 2014-2021. As per Surjit Bhalla, that no study combines pre-Covid and Covid years without even a mention of the difference. Surjit Bhalla presents data for three time periods, including the normal 2014-2018, Covid 2019-2021, and all years 2014-2021.

    Why accurate rural wage data is important?

    • Poverty alleviation: Rural wage data is used to determine the poverty levels in a country, and accurate data is essential for effective poverty alleviation policies.
    • Income inequality: Accurate rural wage data can help policymakers understand the level of income inequality in rural areas and design policies to reduce it.
    • Agricultural productivity: Rural wage data is used to assess the productivity of the agricultural sector, which is a key source of income for rural households.
    • Labor market trends: Accurate rural wage data helps policymakers understand the trends in the rural labor market, such as changes in demand for different types of labor, and design policies to support employment growth.
    • Minimum wage determination: Accurate rural wage data is necessary for determining minimum wages for rural workers, which is important for protecting the rights of workers and reducing labor exploitation.
    • Social protection: Rural wage data is used to design social protection programs such as cash transfers, food subsidies, and public works programs to support the poorest households in rural areas.
    • Macro-economic policy: Rural wage data is used to inform macro-economic policies such as inflation targeting and monetary policy, as well as to evaluate the effectiveness of such policies on rural households.

    Conclusion

    • The issue of rural real wage growth in India is complex and requires a nuanced understanding of data selection, treatment, intensity, and estimation. There is need for a more comprehensive set of data and a different method of estimation.

    Mains Question

    Q. What is Compound Annual Growth Rate (CAGR). Why do you think, accurate rural wage data is so important?

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  • Overuse of Urea in India and its Implications

    urea

    Central idea

    • Rising urea consumption: The use of urea has continued to increase, leading to a decline in crop yield response to fertiliser use, and an imbalance in the nutrient application.
    • Unbalanced fertilization: The nutrient-based subsidy regime is a failure in promoting balanced fertilization.
    • Several measures failed: The measures introduced by the Indian government to reduce urea consumption, such as neem-coating, smaller bags, and Nano Urea, have not been successful.

    Do You Know?

    The ideal NPK use ratio for the country is 4:2:1, whereas it was 6.5:2.8:1 in 2020-21 and 7.7:3.1:1 in 2021-22. In the recent 2022 kharif season, the ratio got further distorted to 12.8:5.1:1.

    What is Urea?

    • Urea is a commonly used nitrogen-containing fertiliser that provides crops with the necessary nutrients for growth and development.
    • It is a white, crystalline solid that is soluble in water and has a high nitrogen content, with around 46% nitrogen by weight.
    • Urea is made from ammonia and carbon dioxide and is used extensively in agriculture due to its high nitrogen content and affordability.
    • It is a major source of nitrogen for crops, and when applied in the right amounts, it can improve crop yields and increase overall agricultural productivity.

    Urea usage in India

    urea

    Policy moves related to Urea

    The introduction of these measures was aimed at reducing urea consumption in the country.

    • Neem-coated urea: In May 2015, the Indian government mandated the neem-coating of all urea manufactured in the country as well as imported urea to illegal diversion for non-agricultural use.
    • Reduced size: Later, in March 2018, the government replaced 50-kg urea bags with 45-kg bags.
    • Liquid Nano Urea: Recently, in June 2021, the Indian Farmers’ Fertiliser Cooperative (IFFCO) launched a liquid fertiliser called ‘Nano Urea’.

    Ineffectiveness of the above measures

    • Despite the introduction of these measures, urea consumption in the country has not decreased.
    • In fact, sales of urea crossed a record 35.7 million tonnes (mt) in the fiscal year ended March 31, 2023.
    • Although consumption dipped in the initial two years after neem-coating was fully enforced, it reversed from 2018-19.

    Failure of the nutrient-based subsidy (NBS) regime

    • The government introduced the nutrient-based subsidy (NBS) regime in April 2010.
    • The regime fixed a per-kg subsidy for each fertiliser nutrient – nitrogen (N), phosphorus (P), potash (K), and sulphur (S).
    • The aim was to promote balanced fertilisation and discourage farmers from applying too much urea, di-ammonium phosphate (DAP) and muriate of potash (MOP).
    • However, the data shows that nutrient imbalance has worsened, with urea consumption rising by over a third since 2009-10.
    • Nitrogen use efficiency (NUE) has declined from 48.2% in 1962-63 to 34.7% in 2018.

    Cost of overdose fertilization

    • Fertilisers are essential for plant growth and grain yield, but the overuse of urea and other fertilisers has led to an imbalance in nutrient application.
    • Crop yield response to fertiliser use has decreased, with the disproportionate application of nitrogen by farmers being a key reason.
    • Recent research has shown that nitrogen use efficiency has declined in India, making it necessary to promote the use of other fertilisers containing different nutrients.

    Way forward

    To address the issue of rising urea consumption, two approaches can be adopted.

    • Disincentivise: The first is to raise prices, but this is not politically feasible.
    • Improve nitrogen use efficiency (NUE): One way to achieve this is to make the incorporation of urease and nitrification inhibitors compulsory in urea.

    Some other potential solutions include:

    • Promoting the use of organic fertilisers: Such as compost and manure, can improve soil health and reduce the need for synthetic fertilisers. This can also reduce the risk of environmental pollution and improve the sustainability of agriculture.
    • Encouraging precision agriculture: Such as soil testing, can help farmers apply fertilisers in the right amounts and at the right time, reducing wastage and increasing nutrient use efficiency.
    • Promoting crop rotation and intercropping: Planting different crops in rotation or together can help maintain soil fertility and reduce the need for synthetic fertilisers.
    • Increasing public awareness and education: Educating farmers and the public on the importance of sustainable fertiliser use and the potential risks of overusing synthetic fertilisers can help promote more sustainable agricultural practices.

     

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  • Vibrant Villages Program to be integrated with PM Gati Shakti

    The Centre’s Vibrant Villages Programme (VVP) which aims to develop infrastructure and open up villages to tourists along the China border will be integrated with the Gati Shakti Mega Project.

    What is Vibrant Villages Programme (VVP)?

    • Under the VVP, the selected villages will be provided with basic facilities like all-weather roads, potable piped water, 24×7 electricity, good mobile and internet connectivity, healthcare, and enhanced livelihood options.
    • The VVP aims to prevent migration of border population, catalyze reverse migration, and keep all villages along the LAC well-populated from the strategic and security point of view.

    Villages selected

    • Kibithoo, one of the remotest circle headquarters of Arunachal Pradesh, is the first village to be developed under the VVP.
    • The villages will also serve as the Indian Army’s eyes and ears in these remote areas.
    • 2,967 villages in 19 border districts of Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh and Ladakh will be developed under the VVP, with 662 villages being developed in the first phase of the project.

    Components

    • The VVP programme involves a number of livelihood programmes, including bee-keeping, improving agricultural yields, encouraging handicrafts and local products, and providing market linkages to them.
    • The programme also focuses on promoting high-end tourism and training local people to cater to tourists.
    • Provision of 24×7 power through micro-hydel power plants, solar power panels, and windmills is also a vital component of the programme.

    Impact

    • The development of border villages under the VVP will help provide a better livelihood for the locals, improve the quality of life and prevent migration from these remote areas.
    • It will also help in gathering intelligence from the people of border villages and provide the Indian Army with better access to these areas.

    Comparison with China’s Model

    • India’s Vibrant Village Programme (VVP) is people-centric and aims to enhance the quality of life of the locals.
    • China’s Xiaokang villages lack proper planning for providing livelihood opportunities, healthcare and education facilities, and proper transportation.
    • Beijing’s aim of keeping civilian residents of these villages as watchful eyes over activities across the LAC and on Indian Army patrols has been negated.
    • Most of the villages now serve as residential quarters and logistical facilities for the PLA.
    • India’s VVP scores over China’s building of new Xiaokang villages as it has a holistic approach to development.

    Why merged with Gati Shakti?

    • Gati Shakti brings 16 ministries, including Railways and Roadways, together for integrated planning and coordinated implementation of infrastructure connectivity projects.
    • It allows government departments to break operational silos.
    • By integrating VVP with Gati Shakti, there can be better coordination between various ministries and departments to ensure the smooth implementation of the programme and to avoid any duplication of efforts.

     

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  • India-UAE Food Security Partnership Stands to Benefit From Multiple Points of Convergence

    Food Security

    Central Idea

    • The UAE, heavily dependent on food imports, has set the goal of achieving food access and supply chain crisis readiness. India is a key partner in the UAE’s efforts to strengthen food security, given India’s status as the world’s second-largest food producer. The India-UAE food security partnership stands to benefit from multiple points of convergence.

    India’s Capabilities in the Global Agri-Export Market

    • Global agri-export powerhouse: India has become a global agri-export powerhouse thanks to its vast arable land, favourable climate, and growing food production and processing sector
    • India’s role in global food security: India has demonstrated its evolving role in advancing regional and global food security by serving as a humanitarian provider of food to developing countries
    • Global food marketplace: India has invested in massive food parks and placed its food sector to benefit from bilateral trade agreements, reflecting a strong and sustained intent to make the most of its agri-capabilities in the global food marketplace

    India’s Domestic Food Security Measures

    • World’s largest food subsidy programme: India runs the world’s largest food subsidy programme, the Public Distribution System, providing nearly 800 million citizens with subsidised grains for daily, affordable meals
    • POSHAN Abhiyaan: India’s Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan is the world’s largest nutrition programme for children and women
    • 3 C’s for instance: India promotes the consumption and farming of millets as part of its G-20 presidency, demonstrating its resilience focus to address the three Cs of Covid, Conflict, and Climate issues pernicious to food security in India and across the globe

    Facts for prelims: Food security measures

    Scheme Description Target Beneficiaries
    Public Distribution System (PDS) World’s largest food subsidy program providing subsidized grains to nearly 800 million citizens BPL (Below Poverty Line) and APL (Above Poverty Line) families
    National Food Security Act (NFSA) Provides legal entitlement to subsidized food grains to two-thirds of India’s population Priority households and Antyodaya Anna Yojana (AAY) households
    Mid-Day Meal Scheme (MDMS) Provides cooked meals to children in primary and upper primary schools Children in primary and upper primary schools
    Integrated Child Development Services (ICDS) Scheme Provides supplementary nutrition to children under six years of age, pregnant women, and lactating mothers Children under six years of age, pregnant women, and lactating mothers
    Annapurna Scheme Provides 10 kg of food grains per month free of cost to senior citizens who are not covered under the NFSA or PDS Senior citizens who are not covered under the NFSA or PDS
    Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan World’s largest nutrition program for children and women Children under six years of age, pregnant women, and lactating mothers
    Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) Provides free food grains to around 80 crore beneficiaries for a period of 8 months to mitigate the impact of COVID-19 Migrant workers, urban and rural poor, and other vulnerable groups
    Antyodaya Anna Yojana (AAY) Provides highly subsidized food grains to the poorest of the poor families identified by the government Poorest of the poor families identified by the government

    Food Security

    The India-UAE Food Security Partnership

    • UAE’s Commitment to Food Security: The UAE is focusing on the twin objectives of food access and readiness to confront supply chain crises
    • Food corridor: The food corridor could potentially commence a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets
    • Agri-trade for India: The corridor stands to emerge as a world-class template of successful agri-trade for India, while also unlocking greater productivity, efficiency, and growth for its millions of workers and employees
    • Boost to food processing sector: The UAE’s private sector projects spanning its agricultural and food processing sector will generate lakhs of non-farm agri-jobs while enabling farmers to discover better prices for their products.
    • Diversified pathways to the global marketplace: Bolstered by the UAE’s infrastructural capabilities, India’s agricultural products will have more resilient and diversified pathways to the global marketplace

    Food Security

    Facts for prelims

    Millet production and food security

    • Largest producer: India is the largest producer of millet in the world with a share of 41% in 2020, as per FAO. Nine types are grown as kharif crops in over 20 States in the country.
    • Major millets include: finger millet (ragi or mandua), pearl millet (bajra) and sorghum (jowar) and minor millets include foxtail millet (kangani or kakun), barnyard millet (sawa or sanwa, jhangora), little millet (kutki), kodo millet (kodon), proso millet (cheena) and browntop millet.
    • Leading producers: Rajasthan, Karnataka, Maharashtra and Andhra Pradesh are leading producers.
    • India is also among the top five exporters: India exported millets worth $64.28 million in 2021-22 and $59.75 million in 2020-21, according to the Agricultural and Processed Food Products Export Development Authority.

    In depth: The Benefits of India-UAE food security partnership for India and the UAE

    For India

    • Investment in Food Parks: During the I2U2 summit in July 2020, the UAE committed $2 billion in investment towards constructing food parks in India. This investment will generate lakhs of non-farm agri-jobs, while enabling farmers to discover better prices for their products.
    • Access to Global Markets: The food security corridor established on the sidelines of the Comprehensive Economic Partnership Agreement (CEPA) with logistics partner DP World takes forward India’s envisioned presence on the global food value chain, beyond the UAE. The corridor has the potential to establish a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets.
    • Direct Access to UAE’s Food Ecosystem: The Dubai Multi Commodities Centre, the UAE’s largest free trade zone, launched Agriota, an agri-trading and commodity platform to link Indian farmers to food companies in the UAE. This platform will give millions of Indian farmers the opportunity to directly reach out to the entirety of the UAE’s food ecosystem (processing companies, traders, wholesalers) and stock their products in Emirati stores.
    • Infrastructure Development: Several UAE-based companies have expressed interest in constructing a supporting logistics and infrastructure pipeline to accelerate trade and reinforce the food corridor. A consortium of UAE-based entities are investing up to $7 billion in mega food parks, contract farming, and the sourcing of agro-commodities in India. This initiative will include mega food parks, logistics and warehouse hubs, and fruits and vegetable hubs, which will bolster India’s agricultural products’ resilient and diversified pathways to the global marketplace.

    For UAE

    • Diversification of food reserves: UAE heavily relies on food imports to feed its population. The partnership with India will help UAE diversify its food reserves and reduce its dependence on a few countries for its food security.
    • Strategic location: UAE’s strategic location between Asia and Europe can be leveraged to serve as India’s food export gateway to West Asia and Africa region, and beyond. This could enhance the UAE’s position as a hub for food trade in the region.
    • Investment opportunities: The partnership could open up investment opportunities for UAE-based companies to invest in India’s food and agriculture sector, including mega food parks, contract farming, and sourcing of agro-commodities.
    • Better access to Indian products: The partnership could give UAE better access to India’s diversified agri-produce, enabling them to benefit from India’s large and growing food production and processing sector.
    • Infrastructural capabilities: The UAE’s infrastructural capabilities could strengthen India’s agricultural products’ pathways to the global marketplace, providing more resilient and diversified routes to the global food value chain.

    Value addition box

    India’s efforts to promote millet:

    • The Union government promoted millets under the Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP), as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) between 2011 and 2014.
    • In the following years, NITI Aayog worked on a framework to introduce millets under the public distribution system for nutritional support.
    • The government declared 2018 as the ‘national year of millets’ to trigger an increase in demand.
    • The programme under INSIMP was merged with the National Food Security Mission (NFSM) as NFSM-Coarse Cereals and implemented in 14 States. Several States led separate missions to promote millets.
    • In 2021, the Centre approved the Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) and advised State governments to include millets in the midday meal menu to enhance the nutritional outcome.
    • India’s efforts to promote the consumption and production of millet got a boost when the UNGA accepted the country’s proposal and dedicated 2023 to spreading awareness about these grains. It is instrumental for PM’s vision to make IYM 2023 a people’s movement and positioning India as the ‘global hub for millets’.

    Conclusion

    • The India-UAE food security partnership stands to benefit both countries, and the collaboration between the two nations can offer solutions to address food security issues in the Global South. With the UAE’s infrastructural capabilities and India’s agricultural capabilities, the partnership can create diversified pathways to the global marketplace, generate non-farm agri-jobs, and enable farmers to receive better prices for their products.

    Mains Question

    Q. Explain the India-UAE food security partnership and enumerate the mutual benefit of the food security partnership.

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  • India’s first underwater transport tunnel spanning the Hooghly River

    tunnel

    Central idea: The East-West Metro corridor, the second line of Kolkata’s Metro network that is currently under construction, will connect Kolkata and Howrah, and one of its highlights is India’s first underwater transport tunnel spanning the Hooghly river.

    Hooghly River: Some facts

    Description
    Name Bhagirathi Hooghly River (Anglicized alternatively spelled Hoogli or Hugli)
    Source Close to Giria, north of Baharampur and Palashi, in Murshidabad
    Length 260 km
    Flows through West Bengal
    Endpoint Bay of Bengal
    Importance Lifeline for Kolkata, transportation route for goods and people, historical trade route, cultural and ecological resource
    Challenges Changing course, frequent floods, pollution from industrial effluents and sewage
    Additional Information A man-made canal called the Farakka Feeder Canal connects the Ganges to the Bhagirathi to bring the abundant waters of the Himalayan river to the narrow river that rises in West Bengal.

    The main course of the Ganges then flows into Bangladesh as the Padma.

    The Bhagirathi Hooghly River is also called the Ganga or the Kati-Ganga in the Puranas.

    About the East-West Corridor

    • The East-West Corridor is expected to significantly ease congestion in the city.
    • The line connects Kolkata’s IT hub of Salt Lake Sector V to the western suburb of Howrah.
    • The eastern part of the East-West line is operational while the western portion of the corridor is underground.
    • There are 12 stations on the entire route, including the country’s deepest, Howrah, at a depth of 33 meters.

    Key feature: Underwater Tunnel

    • The tunnels under the Hooghly River are 520 meters long and more than 30 meters below the river surface at its deepest point.
    • The trains will have an operational speed of 80 km/h and will cover the half-kilometre stretch under the Hooghly in about 45 seconds.
    • The underwater tunnels have an internal diameter of 5.55 meters and an external diameter of 6.1 meters.

     

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