💥UPSC 2026, 2027, 2028 UAP Mentorship (March Batch) + Access XFactor Notes & Microthemes PDF

Type: Explained

  • Coal and Mining Sector

    States have the unlimited right to tax mineral-rich lands    

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act);

    Mains level: Design of power between Union and state;

    Why in the News?

    The Supreme Court delivered a significant 8:1 judgment affirming that State Legislatures have the power to tax mining lands and quarries, independent of the Parliament’s Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act).

    About the verdict given by SC      

    • Judgment Overview: The majority opinion, authored by Chief Justice D.Y. Chandrachud, stated that states derive their taxing authority from Article 246 and Entry 49 of the State List, which pertains to taxation on lands and buildings.
    • Distinction Between Tax and Royalty: The Court clarified that royalty paid for mining leases is not considered a tax. 
      • Royalty is viewed as a contractual obligation between the mining lessee and the lessor, thus not subject to the same regulatory framework as taxes.
    • Parliamentary Limitations: The judgment emphasised that the MMDR Act cannot impose limitations on state taxation powers regarding mines and quarries. The Court rejected the argument that Entry 50 of the State List allowed Parliament to impose restrictions on state taxes related to mineral rights.
    • Dissenting Opinion: Justice B.V. Nagarathna provided a dissenting opinion, cautioning that allowing states to tax under Entry 49 could lead to double taxation and undermine the specific provisions of Entry 50.

    About the Mines and Minerals (Development and Regulation) Act of 1957

    • The MMDR Act was enacted to regulate the mining sector in India, ensuring the development and conservation of minerals while balancing the interests of the state and the public.
    • The Act provides a comprehensive framework for the licensing and regulation of mines, including provisions for the fixation of royalties on mineral extraction.
    • The Act has been a point of contention regarding the extent of state powers to impose taxes on mineral rights, with arguments that it limits state legislative competence in this area.
    • The Supreme Court’s recent ruling clarifies that the MMDR Act does not restrict state powers to tax mineral rights, thus resolving conflicts arising from previous interpretations of the Act.

    On the division of the power

    • Constitutional Framework: The Constitution of India delineates the distribution of powers between the Centre and the States through the Seventh Schedule, which includes the State List and the Union List.
    • Entry 49 and Entry 50: Entry 49 allows states to levy taxes on lands and buildings, while Entry 50 pertains specifically to taxes on mineral rights, subject to limitations imposed by Parliament.
    • Judicial Clarity: The Supreme Court’s judgment clarifies that states can exercise their taxing powers under both Entries 49 and 50 without interference from the MMDR Act, reinforcing the states’ authority over local resources.

    Conclusion: The Supreme Court’s ruling affirms that states can tax mining lands independently of the MMDR Act, highlighting their authority under Article 246 and Entry 49, despite dissenting concerns about double taxation.

    Mains PYQ:

    Q Though the federal principle is dominant in our Constitution and that priniciple is one of its basic features, but it is equally true that federalism under the Indian Constitution leans in favour of a strong Centre, a feature that militates against the concept of strong federalism. 15M

  • Coal and Mining Sector

    India’s illegal coal mining problem      

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Legal Frameworks Governing Coal Mining;

    Mains level: Factors Contribute to the Persistence of Illegal Coal Mining;

    Why in the News?

    On July 13, three workers died of asphyxiation inside an illegal coal mine in Gujarat’s Surendranagar district.

    How Prevalent is Illegal Coal Mining in India?

    • Illegal coal mining has led to multiple fatalities, including recent incidents in Gujarat, Jharkhand, and West Bengal, highlighting its prevalence and dangers.
    • There are 10 workers who have died in illegal mining incidents in Gujarat alone this year, showcasing the ongoing risks associated with this activity.
    • Illegal mining is often conducted in abandoned mines or shallow coal seams, particularly in remote areas, where monitoring and enforcement of regulations are weak.

    What are the Legal Frameworks Governing Coal Mining in India?

    • Coal Mines (Nationalisation) Act, 1973: This act nationalized coal mining in India, regulating who can mine coal and under what conditions.
    • Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): This central legislation governs the mining sector, detailing processes for acquiring mining licenses and regulating mining activities. It empowers state governments to frame rules to prevent illegal mining.
      • While the MMDR Act provides a framework, the enforcement and regulation of illegal mining fall under state jurisdiction.

    Why is the Responsibility for Addressing Illegal Mining Placed on State Governments?

    • Law and Order Issue: Illegal mining is categorized as a law and order problem, which is a subject under the State List of the Constitution, making it the responsibility of state governments to address.
    • Limited Central Authority: The Union government often shifts the responsibility to state authorities, citing the decentralized nature of governance in matters of local enforcement and regulation.

    What Factors Contribute to the Persistence of Illegal Coal Mining?

    • High Demand for Coal: With coal accounting for 55% of India’s energy needs, the high demand often exceeds legal supply leading to illegal mining activities.
    • Poverty and Unemployment: Many coal-rich areas are home to impoverished populations who resort to illegal mining as a source of livelihood due to limited job opportunities.
    • Weak Regulatory Enforcement: Inadequate monitoring and enforcement of mining regulations in remote areas allow illegal mining operations to flourish.
    • Political Patronage: Allegations of political leaders’ involvement in illegal mining operations complicate efforts to curb these activities, as seen in various states.

    What Safety Risks Do Workers Face?

    • Lack of Safety Equipment: Workers often operate without helmets, masks, or other protective gear, significantly increasing their risk of injury or death.
    • Hazardous Working Conditions: Illegal mines are typically unregulated, lacking proper structural support, making them vulnerable to cave-ins, landslides, and explosions.
    • Toxic Gas Exposure: Miners are at risk of asphyxiation from inhaling toxic gases like carbon monoxide, as evidenced by recent fatalities in Gujarat.
      • Continuous exposure to coal dust and hazardous substances can lead to respiratory issues and chronic health conditions, further endangering workers’ health.

    Conclusion: Need to implement advanced surveillance technologies, such as drones and satellite imaging, to monitor and detect illegal mining activities in real-time. This can improve the efficiency of enforcement agencies in identifying and responding to illegal operations swiftly.

  • Why is there a move to split the Bengaluru municipal corporation into smaller bodies with a 3-tier structure?   

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Constitutional provisions related to Municipality ;

    Mains level: Functions and challenges of Municipality,

    Why in the News?

    The Karnataka government has introduced a bill in the state assembly that aims to restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) by dividing it into multiple smaller municipal corporations. This proposal is known as the Greater Bengaluru Governance Bill, 2024.

    What is the Greater Bengaluru Governance Bill?

    • The Bill aims to restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) into smaller administrative units to improve governance in Bengaluru.
    • Drafted by the BBMP Restructuring Committee, the Bill has undergone multiple revisions since its inception in 2014, with the latest modifications presented in June 2024.
    • The Bill was tabled in the Karnataka Assembly on July 23, 2024, and is set for discussion among lawmakers, with a sub-committee likely to scrutinize it before further consideration.

    Key Highlights of the Draft Bill

    • City Corporations: The Bill proposes that the number of city corporations in the Greater Bengaluru Area shall not exceed ten, with indications that it may be split into five units based on specified criteria.
    • Governance Structure: A three-tier governance structure will be established, comprising the Greater Bengaluru Authority (GBA) at the top, city corporations in the middle, and ward committees at the bottom.
    • Composition of GBA: The GBA will be headed by the Chief Minister and include 21 members, including key ministers and heads of various urban development organizations.
    • Criteria for Corporations: City corporations must have a population of at least 10 lakh, a density of over 5,000 people per sq km, and a minimum revenue generation of ₹300 crore annually.
    • Ward Distribution: Each city corporation will consist of between 50 to 200 wards, with the current BBMP having 198 wards.

    Present Criticism

    •  The BJP has criticized the Bill as “unscientific,” claiming it threatens the cultural identity of Bengaluru and could lead to administrative chaos.
      • BJP leaders have expressed fears that the proposed restructuring could diminish the prominence of the Kannada language in Bengaluru.
    • Critics point to the unsuccessful trifurcation of the Municipal Corporation of Delhi in 2012, which was reversed in 2022, as a cautionary tale against such restructuring efforts.
    • Concerns have been raised that the Bill may exacerbate economic disparities among the proposed city corporations, with wealthier areas receiving more resources while poorer areas remain underdeveloped.

    Way forward: 

    • Comprehensive Stakeholder Consultation: Before finalizing the Bill, the government should conduct extensive consultations with all stakeholders, including local residents, urban planners, civic organizations, and opposition parties. This will ensure that diverse perspectives are considered, addressing concerns about cultural identity, economic disparities, and administrative efficiency.
    • Clear Definition and Criteria: The Bill should include clear definitions of “local areas” and the criteria for determining the boundaries of the proposed city corporations.
  • North-East India – Security and Developmental Issues

    The panel will look into issues stalling Bill, NE tribal councils told    

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: About Tribal Autonomous Councils;

    Mains level: Controversy over the 125th Amendment Bill;

    Why in the News?

    The Union government will set up a committee led by MoS Home Nityanand Rai to address concerns and expedite the 125th Constitutional Amendment Bill, which aims to empower tribal autonomous councils in northeastern states.

    What is the Controversy over the 125th Amendment Bill?

    •  The Constitution (125th Amendment) Bill, 2019 aims to grant more financial, executive, and administrative powers to tribal autonomous councils under the Sixth Schedule of the Constitution.
    • The Bill has faced delays due to unresolved issues between the Union government and the tribal councils, prompting the formation of a committee to address these concerns.
    • Tribal leaders argue that the Bill is essential for streamlining administrative systems, ensuring proper resource flow, and enhancing the capacity of councils to implement policies beneficial to their communities.
    • The Bill has been pending since its introduction in the Rajya Sabha in February 2019 and has faced scrutiny from the Departmental-Related Standing Committee on Home Affairs, which flagged multiple issues.

    What are Tribal Autonomous Councils?

    • Tribal autonomous councils are local governance bodies established under the Sixth Schedule of the Constitution to provide autonomy and protect the rights of tribal populations in certain northeastern states of India.
    •   As of now, there are 10 autonomous councils across Assam, Meghalaya, Mizoram, and Tripura, which have the authority to legislate on matters related to land, public health, and agriculture.
    • These councils are intended to empower tribal communities by allowing them to manage their resources and governance independently from state governments.

    About the North Eastern Council (NEC) and Its Structural Mandate

    • The North Eastern Council (NEC) was established in 1972 as a statutory body to promote the economic and social development of the northeastern states of India.
    • The NEC’s primary mandate includes coordinating the planning and implementation of development programs, facilitating inter-state cooperation, and addressing issues specific to the northeastern region.
    • The NEC comprises the Chief Ministers of the northeastern states, along with a nominated representative from the central government, ensuring representation from both state and central authorities.
    • The Council focuses on various sectors, including infrastructure development, education, health, and cultural preservation, aiming to enhance the overall development of the northeastern states.

    Conclusion: The Union government should initiate a transparent and inclusive consultation process involving all stakeholders, including tribal leaders, local communities, and state governments. This process should aim to address the concerns raised by tribal councils and ensure that their voices are heard in the legislative process.

  • Genetically Modified (GM) crops – cotton, mustards, etc.

    Why SC couldn’t agree on the environmental release of GM mustard? 

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: About GM Mustard Crop

    Mains level: Significance of GM crops

    Why in the news?

    A two-judge Bench of the Supreme Court delivered a split verdict on Tuesday, July 23, regarding the “environmental release” of Genetically Modified (GM) mustard.

    About GM Mustard Crop 

    • Development and Approval Process: On September 15, 2015, the Centre for Genetic Manipulation of Crop Plants (CGMCP) at Delhi University sought approval from the Genetic Engineering Appraisal Committee (GEAC) for the environmental release of GM mustard DMH-11.
    • Biosafety Dossier: The CGMCP submitted a biosafety dossier to the GEAC, which created a sub-committee to examine its contents. After revisions, the sub-committee submitted its report, inviting comments in September 2016.
    • GEAC Recommendations: On May 11, 2017, the GEAC recommended the environmental release of GM mustard, allowing field tests to assess the crop’s effects. However, the Ministry of Environment sent the proposal back for re-examination in March 2018 after receiving several representations.
    • Deferred Tests: The GEAC directed the CGMCP to examine the effects of GM mustard on honey bees and soil microbial diversity, but these tests were deferred through 2020-21.
      • The GEAC-appointed expert committee found that honeybees do not discriminate between other GM crops such as genetically engineered canola.

    What is the case before the Supreme Court?

    • Background of the Case: The case arose from challenges by environmentalist Aruna Rodrigues and the organization Gene Campaign against the GEAC’s approval for the environmental release of GM mustard, arguing that the decision violated the precautionary principle and lacked proper scientific scrutiny.
    • Split Verdict: The Supreme Court delivered a split verdict regarding the approval for the environmental release of genetically modified (GM) mustard, specifically the hybrid DMH-11. Justices B.V. Nagarathna and Sanjay Karol had differing opinions on the legality of the Genetic Engineering Appraisal Committee’s (GEAC) decision-making process.
    • Justice Nagarathna’s Opinion: Justice Nagarathna held that the GEAC’s approval was flawed and did not follow the necessary procedures, particularly failing to conduct promised field tests. She emphasized that the approval violated public trust and the precautionary principle, which is essential for protecting the environment and public health.
    • Justice Karol’s Opinion: In contrast, Justice Karol argued that the GEAC’s decision was valid and aligned with the development of scientific temper. He stated that field trials are necessary to assess the environmental safety of GM mustard and that the decision-making process was independent and reasoned.
    • Unanimous Directives: Despite the split decision, both judges agreed on the need for the Union government to formulate a national policy regarding GM crops. This policy should involve consultations with various stakeholders, including experts, farmers, and state governments.
    • Case referred to larger bench: The case will be referred to a larger bench for further adjudication due to the differing opinions. The Supreme Court directed that the Ministry of Environment, Forest, and Climate Change (MoEF&CC) should conduct a national consultation within four months to develop this policy.
    • Concerns Raised: Justice Nagarathna pointed out that the GEAC did not consider the long-term effects of GM mustard on health and the environment, while Justice Karol noted the importance of conducting field trials under strict safeguards to monitor the crop’s impact.

    Conclusion: The Union government should formulate a detailed and inclusive national policy on genetically modified crops. This policy should be based on extensive consultations with experts, farmer representatives, state governments, and other stakeholders to ensure a balanced approach that considers scientific, environmental, and public health perspectives.

    Mains PYQ: 

    Q  What are the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification? (2021)

  • Government Budgets

    A big step towards the transformation of various sectors  

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Government initiatives related to Employment

    Mains level: Significance of recent initiatives in the Budget (2024-2025)

    Why in the news?

    The 2024-25 Budget is a progressive proposal featuring several commendable initiatives aimed at boosting India’s economic growth and advancing social progress.

    Prioritized areas in the recent Budget 2024-25

    • Job Creation and Skilling: The budget allocates ₹1.48 lakh crore towards job creation, employment, and skilling, emphasizing the importance of developing a skilled workforce to support India’s service sector. This shift from a focus on manufacturing to skilling reflects a strategic move towards building a service-oriented economy.
    • Energy Transformation: There is significant investments are directed towards energy transformation initiatives, including solar panel manufacturing and nuclear energy development. The budget allocates ₹89,287 crore to crucial sectors, indicating a commitment to sustainable energy solutions.
    • Healthcare Initiatives: The budget includes measures to enhance healthcare access, such as customs duty exemptions on life-saving cancer medications and components for advanced medical equipment.
    • Technology and Innovation: A framework with nine priorities is introduced to leverage advanced technology and foster collaboration between the government and private sector, promoting growth and innovation across various sectors.
      • For example: The budget allocates ₹1 lakh crore specifically for research and innovation, accompanied by a 50-year interest-free loan.

    What does the budget say on Accessibility and Affordability?    

    • Customs Duty Exemptions on drugs: The budget exempts customs duties on three essential cancer medications, making them more affordable and accessible to patients. This move addresses the high costs associated with cancer treatments, which often pose significant barriers to access.
    • Support for Medical Equipment: Customs duties are also waived for components of X-ray tubes and digital detectors, which are crucial for advanced medical technologies.
    • Alignment with Domestic Capacity: The budget emphasizes aligning customs duties with domestic capacity under the phased manufacturing program, fostering a conducive environment for startups and encouraging local manufacturing.

    On Prioritizing Inclusivity and Fiscal Prudence

    • Women’s Workforce Participation: The budget focuses on boosting women’s participation in the economy through targeted initiatives such as hostels, creches, and skilling programs.
      • According to a report by McKinsey, India can increase its 2025 GDP, estimated at $4.83 trillion, by 16%-60% simply by enabling women to participate in the economy on par with men
    • Research and Development: With India spending only 0.7% of its GDP on research, the budget encourages private sector collaboration with the government to increase investments in R&D. This collaboration is vital for fostering innovation and ensuring sustainable economic growth.
    • Public-Private Partnerships: The budget promotes public-private partnerships to enhance healthcare delivery and infrastructure, reflecting a commitment to inclusivity and collaboration in achieving economic and social goals.

    Conclusion: The government should expand the scope of skilling programs to cover a wider range of sectors and skill levels while ensuring the workforce is equipped to meet the evolving demands of the service-oriented economy.

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Is immunity for the President and Governors absolute?  

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Comparision between President and Governor

    Mains level: Immunity Under Article 361

    Why in the news?

    The Supreme Court has agreed to examine if the immunity granted to the President and Governors under Article 361 violates fundamental rights and constitutional principles.

     What is the case?  

    • The Supreme Court is examining a petition filed by a contractual woman employee of the West Bengal Raj Bhavan, who has accused Governor C.V. Ananda Bose of sexual harassment and molestation.
      • The petitioner argues that the “absolute immunity” granted to the Governor under Article 361 of the Constitution undermines her fundamental rights and the fairness of the legal process.

    Immunity Under Article 361: 

    • Article 361 provides immunity to the President and Governors from being answerable to any court for acts performed in their official capacity.
    • Specifically, clause (2) of Article 361 states that no criminal proceedings can be initiated or continued against the President or a Governor during their term of office. The petitioner contends that this immunity should not apply to illegal acts that violate fundamental rights.
    • The petitioner argues that the Governor’s immunity caused negligent handling of her complaint by police, delaying justice and hindering investigations.
    • The Supreme Court will determine if Article 361(2) immunity is absolute or can be challenged in serious cases like sexual harassment.

    Does Article 361 Grant Absolution to the Governor against Criminal Charges?

    • Scope of Article 361: Article 361 does grant significant immunity to Governors, shielding them from criminal proceedings during their term. However, the immunity is not absolute.
      • The first provision allows for the conduct of the President to be reviewed by designated bodies for impeachment, while the second provision allows for civil suits against the government.
    • Judicial Precedents: Previous court rulings have indicated that while Governors enjoy immunity under Article 361, this does not prevent judicial scrutiny of their actions, especially if those actions infringe upon fundamental rights.
      • For example, in the case of Rameshwar Prasad vs. Union of India, the Supreme Court stated that civil immunity does not preclude challenges based on malafide actions.
    • Potential for Legal Challenge: The current case may set a precedent for how Article 361 is interpreted regarding criminal acts committed by Governors.
      • If the court finds that immunity does not apply to acts that violate fundamental rights, it could pave the way for accountability and legal recourse for victims of misconduct by constitutional authorities.

    Conclusion: The Supreme Court’s interpretation of Article 361 could redefine the immunity of Governors, potentially allowing criminal proceedings for actions violating fundamental rights, thereby ensuring accountability and justice for victims.

    Mains PYQ:

    Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)

  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    A Budget that places health on the margins

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: About PMJAY

    Mains level: Challenges to the Inclusivity of PMJAY

    Why in the news?

    • With the worst of the COVID-19 pandemic behind us (though the World Health Organization warns the virus still lingers), the Union Budget shifted focus to economic growth levers like infrastructure and employment.
    • It was also hoped that recognizing population health as crucial for economic growth would lead to continued investment in strengthening health systems.
    A budget estimate refers to the initial allocation of funds designated for various programs, departments, or projects within a fiscal year. It represents the government’s expectations regarding how much money will be required to meet planned expenditures.

    In contrast, revised estimates come into play later in the fiscal year. After assessing the actual expenditures and needs after the first six months, the government may adjust the initial budget estimates based on how much of the allocated funds have been utilised and what additional resources may be necessary.

    Comparisons with Previous Years

    • Budgetary Estimates: The comparison of the Budget Estimates (BE) for health between 2023-24 and 2025-25, reveals minimal increases:
      • Overall Health Ministry Budget: 1.98% increase
      • National Health Mission (NHM): 1.16% increase
      • PMJAY: 1.4% increase
    • Overall Health Ministry budget: The present allocation made in the current Budget is deemed to be inadequate for expanding health coverage services and enhancing the impact of flagship health programs, particularly in light of rising non-communicable diseases and the goal of universal health coverage by 2030.
    • Misleading Comparisons: When we compare the Budget estimates with the previous Revised estimates (RE) the budgetary increase of nearly 12% is misleading, as the RE reflects actual spending rather than the program’s needs.

    Missed Opportunities

    • Health Workforce Development: While the budget mentioned an increase in new medical colleges, it failed to address the critical need for a multi-layered, multi-skilled health workforce.
    • Drug Pricing Mechanisms: Although customs duties were waived on three anti-cancer drugs. However, the budget missed the chance to implement price controls and pooled procurement strategies that could have lowered drug costs across both public and private healthcare sectors. Establishing such mechanisms could enhance the affordability and accessibility of essential medications.
    • Climate-Resilient Agriculture: While the budget committed to climate-resilient agriculture, which is crucial for food security, it did not sufficiently link these efforts to health outcomes, such as nutrition and public health, which are critical in the context of rising health challenges.

    Challenges to the Inclusivity of PMJAY

    • Limited Coverage of Middle Class: PMJAY primarily targets the bottom 40% of the population based on economic status, leaving the middle class without coverage.
    • Focus on Secondary and Tertiary Care: The program emphasizes secondary and tertiary healthcare, often neglecting primary care services. This approach limits comprehensive health coverage and fails to address preventive healthcare needs, which are crucial for achieving UHC.
    • Awareness and Accessibility Issues: There is a significant disparity in awareness and accessibility of PMJAY across states.
      • For example, awareness is notably higher in Tamil Nadu (80%) compared to Bihar (20%). 

    Way forward: 

    • Targeted Funding for Flagship Programs: Need to allocate a more substantial increase in the budget for the National Health Mission (NHM) and Pradhan Mantri Jan Arogya Yojana (PMJAY) to the eradication of non-communicable diseases, tuberculosis elimination by 2025.
    • Strengthen Primary Healthcare: Govt. should ensure adequate funding for primary healthcare services, which form the foundation for preventive and community health initiatives.

    Mains PYQ:

    Q The public health system has limitations in providing universal health coverage. Do you think that the private sector can help in bridging the gap? What other viable alternatives do you suggest? (2015)

  • Government Budgets

    For the social sector, it is old wine in an old bottle 

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Schemes related to the social sector;

    Mains level: Employment challenges;

    Why in the News?

    Budget 2024 maintains the same approach as previous years regarding social sector allocations.

    Decreasing allocations in the Budget for social sector schemes

    • Education Sector: The allocations for school education increased by ₹5,000 crore and for higher education by ₹3,000 crore. The increased recoveries from fees and self-financing schemes suggest a shift towards cost recovery in educational institutions.
    • Health Sector: The allocation for the Department of Health and Family Welfare rose by only ₹1,500 crore.
      • Food Subsidy: There is a limited increase in food subsidies despite rising economic costs and the need to update coverage based on the latest population figures.
    • Shift in Approach: The government giving greater emphasis on cost-effectiveness and privatization in education and health, shifting focus towards contributory schemes like the Atal Pension Yojana.

    Social Sector Schemes in Budget 2024-25

    • Social Protection Schemes:
        • POSHAN Scheme: There is a slight increase from ₹11,600 crore to ₹12,467 crore, but still less than the actual expenditure in 2022-23.
        • Saksham Anganwadi Scheme: The allocation increased to ₹21,200 crore from ₹20,554 crore, but no increase in salaries for Anganwadi workers or honorarium for mid-day meal cooks.
    • Maternity and Social Assistance:
        • Samarthya Scheme: The budget reduced to ₹2,517 crore from ₹2,582 crore. The PMMVY scheme’s maternity benefits have remained unchanged since 2017.
        • NSAP: Allocation for social security pensions remains unchanged at ₹9,652 crore, reducing real coverage and value.

    Schemes for the Unemployed

        • The ‘Prime Minister’s Package for Employment and Skilling’ includes government-sponsored internships, formalization of jobs through incentives for EPFO enrolments, and skill-development programmes
        • An allocation of ₹2 lakh crore over five years for the employment package, linked to industry response

    Schemes for Street Vendors

      • The PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi) aims to benefit over 50 Lakh street vendors across India
      • All lending institutions, including NBFCs, are participating in the scheme to provide affordable loans to street vendors

    Employment Challenges

    • Stagnant Wages and Dampened Demand: The Indian economy faces significant challenges with stagnant wages, which affect consumer demand. This stagnation can hinder overall economic growth and employment generation.
    • Reliance on the Private Sector for Job Creation: The government is increasingly looking to the private sector to address employment challenges.
      • Initiatives like the ‘Prime Minister’s Package for Employment and Skilling’ aim to incentivize private sector job creation through government-sponsored internships and skill development programs.
    • Limited Budgetary Allocations: The budgetary allocations for employment-related schemes are limited, with the entire employment package amounting to ₹2 lakh crore over five years.
    • Focus on Supply-Side Solutions: The current approach emphasizes supply-side measures to incentivize the private sector rather than addressing the underlying demand-side issues, such as low consumer spending and economic uncertainty.

    Way forward: 

    • Enhance Social Sector Investments: The government should significantly increase budget allocations for critical social sector schemes, particularly in education, health, and social protection.
    • Comprehensive Employment Strategy: Need to develop a holistic approach to employment that addresses both supply and demand-side issues.
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Key takeaways from the 2023-24 Economic Survey   

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Data trends in economic survey;

    Mains level: Major five issues with the Indian Economy;

    Why in the News?

    The 2023-24 Economic Survey highlights realistic challenges for India’s growth, projecting GDP growth at 6.5%-7% for FY 2024-25 despite 8% growth in FY 2023-24.

    What are the major five issues with the Indian Economy?  

    • Weak Demand: In India, an unfavourable environment for FDI growth is due to high interest rates in developed countries, which increases the cost and opportunity cost of investment in India.
    • Dependence on China: Due to over-reliance on China for imports, particularly in key sectors like renewable energy, limits India’s manufacturing capabilities and increases vulnerability to geopolitical tensions.
    • Tepid Private Investment: Despite tax cuts aimed at stimulating capital formation, the corporate sector has not significantly increased investment, leading to a lack of job creation and economic dynamism.
    • Employment Challenges: The need to generate approximately 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, coupled with insufficient data on job creation, complicates labour market analysis.
    • Infrastructure Deficiencies: Inadequate infrastructure, such as roads, railways, and sanitation, continues to hinder economic development and efficiency, requiring substantial investment and reform to improve productivity.

    What are the suggestions given in the Economic Survey? 

    • Private Sector’s Role in Job Creation: The corporate sector should take responsibility for creating jobs, as it is in their enlightened self-interest.
    • Embracing Healthy Lifestyle: Indian businesses should learn from India’s traditional lifestyle, food, and recipes to live healthily and in harmony with nature.
    • Focusing on Agriculture: The farm sector can generate higher value addition, boost farmers’ income, create opportunities for food processing and exports, and make the sector attractive to urban youth.
    • Removing Regulatory Bottlenecks: Licensing, inspection, and compliance requirements imposed by various levels of government are an onerous burden on businesses, especially MSMEs.
    • Improving Data Quality: The lack of availability of timely data on the absolute number of jobs created in various sectors precludes an objective analysis of the labour market situation.

    Way forward: 

    • Enhance Infrastructure Development: Need to prioritize investments in essential infrastructure such as roads, railways, and sanitation to boost economic efficiency and productivity.
    • Strengthen Data Collection and Analysis: The government should develop robust mechanisms for timely and accurate data collection on employment and other key economic indicators.

    Mains PYQ: 

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