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Type: DOMR

  • Establishment of GST Appellate Tribunals across India

    Central Idea

    • The Finance Ministry has formally established 31 Appellate Tribunals spanning 28 States and eight Union Territories for the Goods and Services Tax (GST).
    • This significant move aims to address the increasing number of taxpayer disputes with the Revenue Department.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
    • It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
    • The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
    • The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.

    Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

    1. Adjudicating Authority
    2. Appellate Authority
    3. Appellate Tribunal
    4. High Court
    5. Supreme Court

    Need for such Tribunal

    • Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month-old indirect tax regime that are now clogging High Courts and other judicial fora.
    • Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
    • Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
    • Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

    Issues with present litigation

    • Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
    • Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
    • Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

    Significance

    • The creation of these tribunals had been in the pipeline since the implementation of the GST regime on July 1, 2017.
    • The number of pending appeals by taxpayers related to central GST levies had surged to over 14,000 (June 2023).

  • Circular Economy and E-Waste

    Central Idea

    • The Indian Cellular and Electronics Association (ICEA) recently released a report titled ‘Pathways to Circular Economy in Indian Electronics Sector.’
    • This report, developed in collaboration with NITI Aayog, explores the possibilities of harnessing electronic waste (e-waste) to create a circular economy in India’s electronics sector.
    • It highlights the significant market potential, estimated at $7 billion that could be unlocked through effective e-waste management.

    Current State of E-Waste Management in India

    • Predominantly Informal: E-waste management in India is primarily informal, with approximately 90% of e-waste collection and 70% of recycling handled by a competitive informal sector.
    • Role of Informal Sector: The informal sector excels in salvaging components from older devices and profiting from repairs. Industrial hubs like Moradabad witness the extraction of precious metals like gold and silver from printed circuit boards (PCBs).
    • Government Efforts: The Union Government introduced the E-Waste (Management) Rules, 2022, to digitize and provide visibility into e-waste movement. However, the informal sector remains a dominant force in e-waste management.

    Significance of a Circular Economy

    • Growing Demand: The demand for electronics is increasing across all price segments, resulting in resource-intensive production and high emissions.
    • Circular Economy Philosophy: A circular economy aims to reintroduce discarded electronics, their components, and precious metals back into the electronics ecosystem, reducing waste and promoting resource efficiency.
    • Wealth Creation: Viewing materials as resources rather than waste can lead to wealth creation.ry.

    Recycling E-Waste

    • Public-Private Partnerships: The ICEA report suggests public-private partnerships to establish a comprehensive “reverse supply chain.” This chain would involve collecting devices, wiping personal data, and further processing and recycling.
    • Auditable Database: Creating an auditable database of materials collected through this process and forming geographical clusters for device disassembly are proposed.
    • High Yield Recycling Centers: Incentivizing high-yield recycling centers is recommended to extract maximum value from electronic products.
    • Promoting Repair: Encouraging repair and extending product lifespans, possibly through support for a right-to-repair by users, can reduce the environmental impact of e-waste.

    Challenges in E-Waste Management

    • Informal Sector: The large and competitive informal sector is difficult to track and regulate, making adherence to environmental norms challenging.
    • Device Stockpile: An estimated 200 million devices remain unused in consumers’ homes, as people are concerned about their personal data when recycling devices.
    • Capital Intensive: Establishing large-scale recycling plants requires substantial capital investment, with challenges in securing stable materials.
    • Material Scarcity: Securing materials to stabilize recycling plants is a complex issue, as materials are scattered and supply chains are unpredictable.
    • Transition from Informal to Formal: Replicating the success of the informal sector in a formalized and reliable manner remains a significant challenge.

    Conclusion

    • The transformation of e-waste management into a circular economy is a promising venture for India’s electronics sector.
    • While the informal sector currently dominates this landscape, there is a growing need to formalize and regulate e-waste management.
    • The challenges are substantial, but with the right policies, public-private collaborations, and incentives, India can harness the $7 billion market opportunity and promote resource efficiency in its electronics sector.

  • Unemployment: Measurement Challenges in Developing Economies

    Central Idea

    • The Periodic Labour Force Survey (PLFS) in 2017 revealed India’s highest-ever recorded unemployment rate at 6.1%.
    • The 2021-22 PLFS indicated a reduction to 4.1%, still higher than some developed economies like the U.S., where unemployment rates varied from 3.5% to 3.7% between July 2022 and July 2023.
    • Comparing India and the U.S. unemployment rates is complex due to their vastly different economies.

    unemployment

    About Periodic Labour Force Survey (PLFS)

    Established 2017 (The PLFS was initiated in 2017 as part of the larger National Sample Survey (NSS) program)
    Administered by National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, Government of India
    Objective To collect data on labor force participation, employment, and unemployment in India.
    Key Data Collected – Workforce Participation

    – Employment Types and Sectors

    – Unemployment

    – Demographic and Socioeconomic Characteristics
    Significance Provides vital information for policymaking, research, and analysis related to the labor market in India.
    Frequency Periodic surveys conducted at regular intervals.

     

    Defining Unemployment

    • Unemployment, as per the International Labour Organization (ILO), involves being jobless, available for work, and actively seeking employment.
    • The unemployment rate is the ratio of the unemployed to the labor force, but it can decrease if the economy lacks job creation or people stop job hunting.

    Measuring Unemployment in India

    • In developing economies, like India, social norms can limit job search decisions.
    • The 2009-10 National Sample Survey Organisation (NSSO) survey revealed that many women who engaged in domestic work would work if opportunities were available within their households but are not considered unemployed since they aren’t actively seeking jobs.
    • Measuring unemployment in India is complicated due to the informal job market, where individuals hold various roles throughout the year.

    Different Metrics for Classification

    • The Usual Principal and Subsidiary Status (UPSS) and the Current Weekly Status (CWS) are two major measures for classifying individuals in India.
    1. UPSS considers an individual employed even if they worked for more than 30 days in a subsidiary role.
    2. CWS counts an individual as employed if they worked at least one hour on one day within the past week.
    • UPSS typically yields lower unemployment rates than CWS since finding work over a year is more likely than in a week.

    Impact of Informal Economy

    • The low bar for classifying individuals as employed means that unemployment rates are lower in rural areas than urban regions in agrarian economies.
    • Definitions may ‘underestimate’ unemployment but are designed to capture the informal economy’s nuances.

    The Lockdown Effect

    • The lockdown in March 2020 disrupted the Indian economy, but PLFS unemployment rates did not reflect this immediately.
    • UPSS status may still consider those who lost jobs during the lockdown as employed if they spent most of the previous year working.
    • CWS criteria show higher unemployment rates due to shorter reference periods but may not fully capture the long-term impact of the lockdown when aggregated across different periods.

    Conclusion

    • Unemployment is becoming a significant factor in upcoming elections, making it crucial to understand its definition and measurement complexities in developing economies.

  • Maritime Infrastructure Perspective Plan (2023-37)

    maritime

    Central Idea

    • The Maritime Infrastructure Perspective Plan (MIPP) 2023-37 was unveiled at the Naval Commanders Conference.
    • It signifies a forward-looking strategy aimed at fostering sustainable maritime architecture.

    About MIPP

    • Aligned with the overarching vision of the PM Gati Shakti project, this comprehensive plan was introduced by the Minister of State for Defence.
    • The plan’s objectives span over the next 15 years and strive to synergize the Navy’s infrastructure requirements in a dynamic and encompassing model.

    Features of the MIPP

    1. Synchronizing Infrastructure Needs:
    • The MIPP 2023-37 envisions an integrated approach to address the Navy’s infrastructure requirements.
    • It aims to harmonize naval infrastructure development over the next 15 years through a meticulously designed perspective plan.
    1. Compliance with Broader Policies:
    • The plan adheres to the broader policy directives of the PM Gati Shakti Project, Disaster Resilience, and Transition to Net Zero, among others.
    • Sustainability and compliance with national policy priorities are key principles underpinning the plan’s formulation.
    1. Modernization Efforts:
    • To accommodate technological advancements and promote self-reliance, the revised “IRS Rules and Regulations Handbook for Construction and Classification of Naval Combatants” was introduced.
    • This handbook reflects the naval shipbuilding industry’s growth and aligns with the philosophy of ‘AatmaNirbharta’ (self-reliance).
    1. Transformational Initiatives:
    • The release of the “Family Logbook for Defence Civilian Personnel of the Indian Navy” serves as a milestone in maintaining personal records efficiently.
    • The launch of the “Electronic Service Document Project” is poised to revolutionize HR record-keeping within the Navy.

    Facts/Terms for UPSC Prelims

    • PM Gati Shakti Project: A government initiative aimed at enhancing infrastructure connectivity and development across various sectors, contributing to economic growth and national development.
    • Indian Register for Shipping (IRS): An organization responsible for ship classification and certification in India, ensuring that ships comply with international standards for safety and environmental performance.
    • Blue Economy: Economic activities related to oceans and water bodies, including fisheries, aquaculture, tourism, and shipping, which contribute significantly to a nation’s economy.
    • Geoeconomics: The study of how economic factors and policies influence international relations and geopolitics.
    • Geopolitics: The study of political and territorial issues influenced by geographical factors and international power dynamics.

    Conclusion

    • The Maritime Infrastructure Perspective Plan 2023-37 stands as a blueprint for India’s maritime progress, exemplifying the commitment to self-reliance, sustainability, and modernization.
    • With a focus on comprehensive development and adherence to national policies, the plan charts a course towards a stronger, more resilient naval infrastructure.
    • It aligns with the evolving security landscape and the broader objectives of the nation.

  • Multidimensional Poverty Reduction in India: A Closer Look

    poverty

    Central Idea

    • PM highlighted a significant milestone achieved during his government’s first 5-year term – the liberation of 13.5 crore Indians from the clutches of multidimensional poverty.
    • This achievement, as substantiated by the National Multidimensional Poverty Index (MPI) report, reflects the government’s commitment to improving the lives of millions across various dimensions of well-being.

    Understanding Multidimensional Poverty Index (MPI)

    • Holistic Evaluation: The MPI gauges deprivations across health and nutrition, education, and standard of living, offering a comprehensive assessment of poverty that extends beyond traditional monetary measures.
    • Three Dimensions: Health is evaluated through nutrition, child and adolescent mortality, and maternal health. Education encompasses years of schooling and school attendance. The standard of living is assessed through variables like sanitation, drinking water, and access to financial services.
    • Technical Collaborators: The methodology behind India’s MPI draws inspiration from the Oxford Poverty and Human Development Initiative (OPHI) and the UN Development Programme (UNDP), with OPHI and UNDP collaborating to formulate the national index.

    Notable Achievements and Data

    • Decline in Poverty: The poverty headcount ratio – the proportion of multidimensionally poor individuals – witnessed a remarkable drop from around 25% to under 15% between the periods of National Family Health Survey (NFHS)-4 (2015-16) and NFHS-5 (2019-21).
    • Significant Impact: This reduction signifies that a staggering 13.5 crore Indians liberated themselves from multidimensional poverty during this period.

    poverty

    Comparison with Historical Records

    • Historical Context: The MPI’s multidimensional nature makes direct comparisons with India’s traditional poverty estimations challenging. However, the Global MPI 2023 report underscores that 415 million Indians emerged from poverty between 2005-06 and 2019-21.
    • Distribution over Time: Economists elucidate that out of the 415 million, 270 million transitioned out of poverty from 2005-06 to 2015-16, with the remaining following thereafter.
    • Discrepancies in Ratio: The Global MPI cites India’s poverty ratio as 16.4%, while Niti Aayog’s MPI places it at 14.96%, due to variations in metrics and definitions.

    Traditional Poverty Measurement

    • Historical Monetary Measure: Since 1901, poverty in India has been estimated using monetary measures that ascertain the income needed for subsistence or a minimum standard of living.
    • Creation of Poverty Line: Expert committees headed by D T Lakdawala (1993), Suresh Tendulkar (2009), and C Rangarajan (2014) established a poverty line based on consumption expenditure data.
    • Unresolved Data Issues: The absence of updated consumption data since 2011 has led to economists using alternative sources like NFHS data and CMIE data to estimate poverty, which has introduced uncertainty.

    Conundrum of Middle-Class Definition

    • Ambiguity in Classification: India lacks an official middle-class definition, making it challenging to ascertain whether those emerging from poverty automatically join the middle class.
    • Income Disparity: Private research by PRICE categorizes the middle class based on annual income between ₹5 lakh and ₹30 lakh, a considerable jump from the income levels of individuals transitioning from poverty.
    • Survey Insights: As per PRICE’s survey, out of India’s population of 1,416 million, 432 million fall under the “Middle Class” category, while 732 million are classified as “Aspirers.”

    Conclusion

    • The reduction of 13.5 crore individuals from multidimensional poverty is a testament to India’s commitment to holistic development.
    • While multidimensional poverty indices gauge well-being across dimensions, traditional poverty estimation methods use monetary measures.
    • India’s achievements reflect its focus on inclusive growth, emphasizing improvements in health, education, and living standards.
    • As the nation continues its journey, these achievements illuminate the path towards building a more prosperous, equitable, and resilient society.

  • Services PMI at 13-Year High

    Central Idea

    • India’s services sector has exhibited significant growth, as reflected by the S&P Global India Services Purchasing Managers’ Index (PMI), which reached a 13-year high of 62.3 in July.
    • The recovery is driven by increased demand, new business opportunities, and robust export orders.
    • However, challenges such as rising input costs and cautious output pricing indicate a nuanced landscape.

    Service Sector

    The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.

    Some examples of activities that fall under the service sector include:

    1. Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
    2. Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
    3. Financial services: This includes banks, insurance companies, and investment firms.
    4. Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
    5. Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
    6. Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
    7. Education and training: This includes activities such as schools, colleges, universities, and vocational training.
    8. Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.

     

    Purchasing Managers’ Index (PMI)

    • PMI is an indicator of business activity — both in the manufacturing and services sectors.
    • The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
    • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
    • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

    How is the PMI derived?

    • The PMI is derived from a series of qualitative questions.
    • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

    How does one read the PMI?

    • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
    • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
    • If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.

    Recent Feat Achieved

    • Output Levels: The survey-based index shows that output levels experienced the fastest growth since June 2010, driven by robust demand and increased new business gains.
    • Job Creation: Despite the surge in workload, job creation remained modest, with a “slight” pace of hiring. Firms employed a mix of part-time, full-time, permanent, and temporary staff.
    • Rising Input Costs: Input costs recorded the fastest increase in 13 months, primarily due to higher food, labor, and transportation expenses.
    • Output Price Dynamics: On the other hand, firms displayed caution in their output pricing strategy, with output prices increasing at the slowest rate in three months. This approach could be attributed to the desire to secure new contracts.
    • Overseas Expansion: Export orders received a significant boost, with firms reporting the second-fastest increase in export orders since the inception of the index in September 2014.
    • Key Growth Sources: Countries like Bangladesh, Nepal, Sri Lanka, and the UAE emerged as key sources of growth in export orders.

  • Smartphone Use among Schoolchildren

    Central Idea

    • The report, titled “State of Elementary Education in Rural India” was recently released.
    • It highlights the prevailing digital landscape in rural communities regarding Education.

    State of Elementary Education in India

    • It is a comprehensive survey conducted across 21 Indian States, encompassing 6,229 parents of rural schoolchildren aged 6 to 16.
    • It is released by conducted by the Development Intelligence Unit (DIU).
    • It has uncovered a notable trend: children in rural areas predominantly employ smartphones for entertainment purposes rather than for educational pursuits.

    Key Highlights

    (1) Smartphone Use and Entertainment

    • Survey Overview: The survey found that 49.3% of rural students have access to smartphones, shaping their digital engagement.
    • Entertainment Dominance: Among parents whose children have access to gadgets, a significant 76.7% noted that their children primarily use smartphones for playing video games, underscoring the prevalence of entertainment-related activities.
    • Media Consumption: The survey revealed that 56.6% of students with access to gadgets use smartphones for downloading and watching movies, while 47.3% engage in downloading and listening to music.
    • Educational Utilization: In contrast, only 34% of students employ smartphones for study downloads, and merely 18% access online learning resources such as tutorials.

    (2) Demographics and Education Levels:

    • Age and Smartphone Access: The survey delineated that students in higher grades (Class VIII and above) have greater access to smartphones (58.32%) compared to their counterparts in lower grades (Classes I-III) with access at 42.1%.
    • Aspirations for Education: An encouraging statistic emerged, with 78% of parents aspiring to educate their daughters to at least graduation level, and 82% aiming for the same for their sons.

    (3) Parental Participation and Insights

    • Learning Conversations: The survey indicated that only 40% of parents engage in daily conversations with their children about school-related learning. Another 32% have such discussions a few days a week.
    • Dropout Insights: Among a subset of 56 respondents, reasons for children dropping out of school included daughters needing to contribute to family income (36.8%), lack of interest in studies (31.6%), and household responsibilities (21.1%). For boys, the primary reason was disinterest in studies (71.8%), followed by the need to assist with family earnings (48.7%).
    • Parent-Teacher Meetings: Impressively, 84% of parents reported regular attendance at parent-teacher meetings. Challenges hindering participation included short notice and a lack of willingness.

    Conclusion

    • Despite limited access, these findings emphasize the need for balanced digital engagement that promotes both educational growth and recreational activities.
    • The survey’s insights into parental aspirations, conversations around learning, and the challenges of dropout rates provide a comprehensive picture of the rural education landscape and underscore the importance of holistic educational approaches.

  • Is there a Rural Bias in National Surveys?

    survey

    Central Idea

    • The Centre has appointed a panel to review the methodology of the National Statistical Organisation (NSO).
    • This step comes amid discussions regarding the accuracy of national surveys such as the National Sample Survey (NSS), National Family Health Survey (NFHS), and Periodic Labour Force Survey (PLFS).

    About National Statistical Office (NSO)

    Historical Background:

    • The NSO was established in 1950 as the Central Statistical Office (CSO) under the Ministry of Planning.
    • It was later renamed the National Sample Survey Office (NSSO) in 1970 and subsequently became the NSO in 2019.
    • Over the years, it has evolved to become the primary statistical agency in India.

    Organizational Structure:

    • The NSO consists of several divisions and units responsible for different statistical functions.
    • These include the Survey Design and Research Division, Field Operations Division, Data Processing Division, National Accounts Division, Price Statistics Division, and Social Statistics Division, among others.

    Key organizations under NSO: Central Statistical Office (CSO)

    • The CSO is a part of the NSO and focuses on macroeconomic statistics and national income accounting.
    • It is responsible for producing key economic indicators such as the Gross Domestic Product (GDP), Index of Industrial Production (IIP), Consumer Price Index (CPI), and Wholesale Price Index (WPI).

    Important Surveys Conducted:

    1. Population Census: The NSO conducts a decennial Population Census in collaboration with the Registrar General and Census Commissioner of India. The census collects data on population size, composition, and other demographic characteristics.
    2. National Sample Survey (NSS): The NSS is a large-scale household survey conducted by the NSO to collect data on various socio-economic aspects. It provides valuable information on employment, consumer expenditure, poverty, education, health, and other important indicators.
    3. Economic Census: The NSO conducts the Economic Census periodically to collect data on the number of business establishments, their distribution across sectors and regions, employment, and other relevant economic variables.
    4. Annual Survey of Industries (ASI): The ASI is conducted by the NSO to collect data on the performance and structure of the industrial sector in India. It covers various aspects such as employment, wages, production, and financial indicators.
    5. Agricultural Census: The NSO conducts the Agricultural Census periodically to collect comprehensive data on agricultural holdings, cropping patterns, land use, irrigation, livestock, and other relevant agricultural variables.
    6. Health and Morbidity Survey: The NSO conducts surveys on health and morbidity to gather data on healthcare utilization, access to healthcare services, prevalence of diseases, and other health-related indicators.

    Why under review?

    • Concerns about Methodology: Experts argue that the usage of outdated survey methodology in national surveys may have systematically underestimated India’s development.
    • Narrower capture of data: The dynamic nature of the Indian economy over the last 30 years might not be adequately captured.
    • Different Perspectives: While some experts believe there is no systematic underestimation of development by these surveys, they acknowledge the presence of errors that should be minimized.
    • Role of National Data: Accurate national-level data is crucial for research, policymaking, and development planning.

    Focus on NFHS Data

    • Crucial development data: The National Family Health Survey provides vital data on health and family welfare indicators.
    • Claims of Bias: Some experts suggest that national surveys, including NFHS, may exhibit a “rural bias” in representation, leading to an underestimation of India’s development.
    • Issue of Error and Random Bias: While errors in population estimations have occurred in some rounds, they appear to be random rather than systematic.

    Minimizing Errors in Data Collection

    • Improving Response Rates: Efforts to increase response rates in both rural and urban areas can lead to more accurate data.
    • Importance of Sample Weights: Proper assignment of sample weights can significantly improve the accuracy of estimations and correct any underrepresentation of rural or urban populations.

    Recommendations for the Review Panel:

    • Addressing Concerns: The review panel should focus on ensuring that the samples are adequately representative rather than proposing a complete overhaul of survey methodologies.
    • Correcting Bias Where It Exists: While addressing any perceived biases, the panel should aim to eliminate bias where it genuinely exists without introducing new biases in policymaking and planning.

    Conclusion

    • Accurate data serves as the bedrock of progress and development in the country.
    • Reviewing the methodology of national surveys is vital to ensure accurate and representative data for India’s development.
    • Striking the right balance between addressing concerns and minimizing errors will lead to more informed decision-making and policy formulation.

  • Niti Aayog’s Export Preparedness Index, 2022

    export
    PC: Live Mint

    Central Idea

    • Tamil Nadu has emerged as the most export-competitive state in India, securing the top spot in the Export Preparedness Index 2022 by Niti Aayog.

    Export Preparedness Index (EPI)

    • EPI is a comprehensive tool aimed at gauging the export readiness of India’s states and union territories (UTs).
    • The index analyses various parameters, enabling the identification of strengths and weaknesses in each region and offering valuable insights for effective policy formulation.
    • EPI focuses on four pillars:
    1. Policy: This pillar evaluates the effectiveness of a state’s trade policy, providing strategic direction for both exports and imports.
    2. Business Ecosystem: The efficiency of a business ecosystem is crucial for attracting investments and fostering an enabling infrastructure for startups and entrepreneurship.
    3. Export Ecosystem: This pillar assesses the business environment specific to exports, determining the level of support and facilitation provided to exporters.
    4. Export Performance: The sole output-based parameter, this pillar examines the reach of export footprints in states and UTs, measuring their actual export achievements.
    • 10 Sub-pillars include: Export Promotion Policy; Institutional Framework; Business Environment; Infrastructure; Transport Connectivity; Export Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth Orientation.

    States performance

    • Export-Competitive State: Top Contenders: Maharashtra, Karnataka, and Gujarat (last year’s leader) followed closely, while Haryana claimed the fifth position.
    • Coastal States’ Dominance: Coastal states dominated the top rankings, with four out of the top five positions occupied by them. Andhra Pradesh also secured the ninth spot.
    • Gujarat- Leading Merchandise Exporter: Gujarat holds the top position as the leading merchandise exporter, accounting for one-third of India’s total merchandise exports.
    • Top Five Exporting States: Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh complete India’s top five exporters.
    • Seven States’ Dominance: An impressive 75% of India’s total exports are contributed by just seven states.

    Reasons for export boost

    • Export Promotion Policies: The top-performing states have implemented export promotion policies at both state and district levels.
    • Diversified Export Basket: These states have a diverse export basket, showcasing their global footprint.
    • Promoting Unique Products: Successful states focus on promoting products unique to their region. Tamil Nadu and Karnataka lead in exporting geographical indication (GI) products.

    India’s Export Performance

    • Resilient Exports: Despite pandemic challenges and supply-side issues, India’s goods exports remained robust, reaching an all-time high of $447 billion in FY23.
    • Target for FY24: The government refrained from setting a specific export target for FY24 due to global headwinds but may aim for $450 billion to $500 billion in goods exports.
    • Services Exports: Services exports amounted to $323 billion in FY23, bringing India’s overall exports to $770 billion.

  • [pib] National Multidimensional Poverty Index, 2023

    Central Idea

    • NITI Aayog released the report ‘National Multidimensional Poverty Index: A Progress Review 2023’.
    • The report highlighted a record 13.5 crore people have moved out of multidimensional poverty in India between 2015-16 and 2019-21.

    What is National Multidimensional Poverty Index (NMPI)?

    • NITI Aayog serves as the nodal ministry for the MPI.
    • It engages with publishing agencies such as Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
    • It uses the Alkire-Foster (AF) methodology.
    • The Baseline Report of MPI is based on the National Family Health Survey (NFHS) 4 conducted during 2015-16.

    Indicators used

    • The MPI considers three dimensions: health, education, and standard of living.
    • It includes indicators such as nutrition, child and adolescent mortality, maternal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, bank accounts, and assets.

    Key findings of the report

    • Decline in Poverty: India has witnessed a substantial decline in multidimensional poverty, with a decrease of 9.89 percentage points from 24.85% in 2015-16 to 14.96% in 2019-21.
    • Progressiveness in rural areas: Rural areas experienced the fastest decline, from 32.59% to 19.28%, while urban areas saw a reduction from 8.65% to 5.27%.
    • Regional Progress: UP recorded the largest decline in the number of poor, with 3.43 crore people escaping multidimensional poverty. The states of UP, Bihar, Madhya Pradesh, Odisha, and Rajasthan showed the fastest reduction in the proportion of multidimensional poor.
    • Path towards SDG Targets: The report indicates that India is on track to achieve SDG Target 1.2, which aims to reduce multidimensional poverty by at least half by 2030.