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Type: op-ed snap

  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Latest Trade Data : India’s Merchandise Exports and Imports

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India's export and import and the current trends

    Central Idea

    • The Ministry of Commerce and Industry has released the latest trade data that shows a continued contraction in India’s merchandise exports and imports in February. It indicates a slowdown in both the global and domestic economies.

    Overview

    • The pace of contraction has deepened, and this has resulted in a further narrowing of the country’s merchandise trade deficit.
    • The disaggregated data shows that core-exports and core imports have continued to contract, and there has been a softening in imports of consumer and investment goods, pointing towards weakening domestic demand.

    What the data shows?

    • Deepening of Contraction: Both exports and imports have seen a deepening of the pace of contraction. Merchandise exports fell by 8.8% in February, while imports declined by 8.2% in the same month. These figures follow a decline of 6.6% and 3.6% in exports and imports respectively in January.
    • Narrowing Trade Deficit: The contraction has led to a further narrowing of the trade deficit to $17.4 billion in February.
    • Impact on Export Destinations: The report by Nomura reveals that the sharpest declines have been observed in India’s exports to the US, China, Japan, and the rest of Asia.
    • Overall Growth: The higher export growth in the first half of the financial year has pushed overall growth for the year so far (April-February) to 7.55%.

    Sectors Affected

    1. Exports side:
    • The disaggregated data reveals that core exports, which exclude exports of oil, gold, and gems and jewellery, have continued to contract.
    • 16 out of the 30 main export segments have fallen in February, including labour-intensive segments such as leather and textiles.
    • Non-oil non-gems and jewellery exports are almost at the same level as last year.
    1. On the imports side:
    • Core imports, which exclude oil, gold, and gems and jewellery, have also continued to contract.
    • The data points towards a softening of imports of consumer and investment goods, indicative of weakening domestic demand.

    Back to basics: Trade Deficit

    • A trade deficit occurs when a country’s imports of goods and services exceed its exports.
    • In other words, it is the amount by which the value of a country’s imports exceeds the value of its exports. It is often seen as an indicator of a country’s economic competitiveness and can have implications for the overall balance of payments and the strength of the domestic currency.

    How Narrowing of trade deficit is beneficial?

    • Narrowing of the trade deficit means that the country is importing fewer goods than it is exporting, which can improve the overall balance of payments and help to strengthen the domestic currency.
    • This can also have positive effects on the economy by reducing the dependence on foreign borrowing and boosting domestic production and employment.

    The outlook for exports remains subdued

    • According to a report by Crisil, India’s merchandise export growth is likely to moderate to 2-4 per cent in the coming fiscal year as two of the country’s biggest destinations for exports the US and EU are expected to slow down sharply.
    • As per the International Monetary Fund’s latest World Economic Outlook, the US economic growth is expected to slow down from 2 per cent in 2022 to 1.4 per cent in 2023, while the Euro region is expected to moderate from 3.5 per cent to 0.7 per cent over the same period.

    Conclusion

    • The trade data indicates a slowdown in the economy. Sluggish exports and tight monetary policy are expected to reduce growth further. This assessment by the World economic outlook implies that exports are unlikely to provide a fillip to growth. The overall economic momentum will be further weighed down as the full impact of the RBI’s tighter monetary policy will be felt across the country.
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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Universal Health Coverage (UHC) Must be Affordable to All

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Primary Health care and Universal Health care

    Central Idea

    • The Universal Health Coverage (UHC) and its implementation in India raises the question of whether we believe in health as a basic human right, which India’s Constitution guarantees under the right to life. The UHC should encompass primary, secondary, and tertiary care for all who need it at an affordable cost without discrimination.

    The Definition of Health

    • The definition of health according to the World Health Organization (WHO), which includes mental and social well-being and happiness beyond physical fitness, and an absence of disease and disability.
    • We cannot achieve health in its wider definition without addressing health determinants, which necessitates an intersectoral convergence beyond medical and health departments.

    Difference between Primary health care (PHC) and Universal health care (UHC)

    • The main difference between PHC and UHC is that PHC is a level of care within the health care system, while UHC is a broader goal of ensuring access to health care for all individuals.
    • PHC is typically provided at the primary care level, while UHC includes all levels of care, from primary to secondary and tertiary care.
    • PHC is focused on basic health care services and health promotion, while UHC aims to provide comprehensive health care services to all individuals.

    Health for All by 2000

    • The slogan Health for All by 2000 proposed by Halfdan Mahler and endorsed by the World Health Assembly in 1977. It argues that universal health care/coverage (UHC) was implied as early as 1977.
    • India committed itself to the ‘Health for All’ goal by 2000 through its National Health Policy 1983.

    International Conference on PHC

    • The International Conference on Primary Health Care, at Alma Ata, 1978, which listed eight components of minimum care for all citizens.
    • Components included: It mandated all health promotion activities and the prevention of diseases, including vaccinations and treatment of minor illnesses and accidents, to be free for all using government resources, especially for the poor.
    • Components excluded: Chronic diseases, including mental illnesses, and their investigations and treatment were almost excluded from primary health care. When it came to secondary and tertiary care, it was left to the individual to seek it from a limited number of public hospitals or from the private sector by paying from their own pockets.

    Concerns around The Astana Declaration

    • The Astana declaration of 2018, which calls for partnership with the private sector. However the commercial private sector, which contributes to alcohol, tobacco, ultra-processed foods, and industrial and automobile pollution, is well established.
    • The Astana declaration never addressed poverty, unemployment, and poor livelihood, but eulogizes quality PHC only as the cornerstone for Universal Health Coverage and ignores broader Universal Health Care.

    Conclusion

    • Every individual has a right to be healed and not have complications, disability, and death. That right is guaranteed only by individualism in public health, the new global approach to UHC, where nobody is left uncounted and uncared for. The Alma Ata declaration of primary health care can be left behind as a beautiful edifice of past concepts, and we should move forward with a newer concept of UHC.
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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Growth Prospects: India Better Positioned Than China

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India and China's Comparative Growth prospects

    India

    Central Idea

    • The Chinese government’s growth target of 5% for 2023 has disappointed observers, given that it is lower than last year’s target and below the expected GDP growth for India in 2023. This is all the more surprising if one considers that India is benefiting from the positive impact of the country reopening after COVID-19 lockdowns while China should benefit from its reopening only this year.

    Reasons for China’s lower growth target?

    • Risk of undershooting growth target again: The Chinese government does not want to run the risk of undershooting its growth target again, as it happened in 2022.
    • Weak external demand and doubts about private investment: Even if consumption is recovering, external demand remains weak and it is hard to know whether private investment will indeed rise given the doubts about the role of the private sector in the Chinese economy as well as increasingly cautious sentiment being expressed by foreign investors.
    • Real estate sector dragging down growth: The real estate sector is still dragging down growth.

    Sustainable growth

    • The Chinese government recognizes that too high a growth rate is no longer desirable, as it only aggravates financial imbalances.
    • Instead, they are promoting sustainable growth, which involves a structural shift of the Chinese economy and the implementation of tighter regulatory measures to contain financial risks and achieve more social objectives, such as a green economy and food security.

    Job creation and foreign investment

    • China emphasises the importance of job security as an objective of sustainable growth, with a higher target for new jobs set by the Chinese government.
    • China’s recent charm offensive to retain foreign direct investment in China is an important source of job creation, given the country’s concern about the job market, especially young workers.
    • However, investors are looking at new pastures, with India likely to be a major beneficiary. Foreign investors are beginning to contribute more substantially to job creation in India, which could pose challenges for China as it tries to hold on to foreign direct investment within the country.

    Comparison of India and China’s growth prospects

    • The growth prospects of India and China, with a focus on job creation and competition for foreign direct investment.
    • while India and China may not be too different in size and population, growth prospects differ substantially.
    • The Chinese government’s cautious growth targets are consistent with the current challenges facing the Chinese economy, but they face more competition than before, especially from India, which has a larger market size and labor pool.
    • This pattern of India’s resilient growth and China’s cautious growth targets will accelerate in the next few years, especially if the reshuffling of the value chain continues, pushed by geopolitics and high costs in China.

    Conclusion

    • The Chinese economy could be facing structural deceleration while India enjoys the benefits of its demographic dividend. China’s structural deceleration and tighter regulatory measures may also affect its future growth prospects. As a result, India may be better positioned for sustained growth compared to China in the coming years.
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  • Digital India Initiatives

    Data Sharing Governance And India’s Opportunity

    op-ed snap | Governance | Mains Paper 2: E-Governance

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: DEPA

    Mains level: Data Governance, Data Sovereignty

    Governance

    Central Idea

    • India’s digital strategies and data governance have advanced in recent years, but there are concerns regarding inclusivity, transparency, security, and sustainability. India’s G-20 presidency presents an opportunity to showcase advancements in data infrastructures and governance, while balancing the interests of stakeholders, promoting ethical and responsible practices, and navigating the complex issues of data sovereignty.

    Governance

    What is Data Governance?

    • Data governance refers to the overall management of the availability, usability, integrity, and security of data used in an organization.
    • Data governance of a country is the policies, procedures, and practices established by the government to ensure that data is effectively managed and protected throughout its lifecycle.
    • This includes defining standards for data collection, storage, usage, and sharing to ensure the accuracy, consistency, and reliability of data.

    DEPA and Related Concerns

    The launch of India’s Data Empowerment and Protection Architecture (DEPA), a consent management tool, has generated both excitement and concern among stakeholders.

    1. Potential: DEPA has the potential to improve data protection and privacy for citizens by giving them greater control over the use and sharing of their personal information. By allowing individuals to easily manage and control their data consents, DEPA could help to build trust in digital technologies and data governance.
    2. Concerns:
    • There are risks associated with DEPA, particularly in terms of security and privacy. If the consent management tool is not properly implemented or managed, there is a risk that personal information could be misused or misappropriated.
    • The implementation of DEPA may be inconsistent across different sectors and jurisdictions, which could undermine its effectiveness and create confusion among citizens.
    1. What needs to be done?
    • In order to realise the potential benefits of DEPA and minimise the risks, it is important that the tool is implemented in a transparent, consistent, and secure manner.
    • This will require close collaboration between the government, the private sector, civil society, and other stakeholders and the development of clear and effective regulations and standards.

    Advancements in Other Sectors and related concerns

    • Digital Payments: Significant progress in financial inclusion and promotion of digital transactions through Unified Payments Interface (UPI) and other options.
    • Digital tech in Healthcare: Use of digital technologies can enhance access to health-care services and empower farmers
    • Security and privacy: There are concerns that relate to security and privacy on the one hand and on infrastructure, connectivity and the availability of a skilled human workforce on the other hand.
    • Data Misuse: There are also concerns around the potential misuse of data and information in these sectors. For example, in the health sector, there is a risk that sensitive medical information could be misused or exploited for commercial purposes, while in agriculture, there is a risk that market information could be manipulated for the benefit of certain actors.
    • Ownership and governance of data: Another issue is that of ownership and governance of data generated and collected in health and agriculture. What are the rights of data providers? And what are the responsibilities towards them? The state has to play a key role in addressing and resolving such issues.

    What is Data sovereignty?

    • It is a principle that a country has the right to control the collection, storage, and use of data within its borders and citizens’ rights to informational self-determination over their data
    • It is closely related to issues of privacy, security, and national sovereignty, and is increasingly important in the age of digital globalization and the proliferation of cloud computing services.

    Data sharing governance and India’s opportunity

    India Data Management Office (IDMO):

    • India’s establishment of an IDMO is a step forward in the country’s journey towards data sharing and data governance.
    • The IDMO is expected to oversee and coordinate the implementation of India’s digital strategies and data governance framework, and to ensure that these efforts are aligned with the country’s values and priorities.
    • It will also work to promote the development and implementation of open-source solutions, which will help to ensure that underlying data architectures are a social public good, and to promote digital technologies to become accessible and affordable for all.
    • Again, this is a great opportunity for India to develop solutions that can be adopted and adapted in other countries. Open source and open innovation models can be important alternatives to proprietary solutions that are governed by big tech companies.

    Conclusion

    • India’s digital strategies and data governance have made significant progress in recent years, but there are important concerns and issues to address. It is crucial to find a middle way between restrictive data sovereignty and limitless data flow, navigate complex issues of privacy, and invest in necessary infrastructure and skills to ensure responsible and accountable data governance.
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  • Foreign Policy Watch: India-China

    India-China: Border Management Mechanism

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India-China border issues and management

    Central Idea

    • India and China appear to be moving towards a new modus vivendi to maintain peace and tranquillity along their disputed 4,000 kilometre border. They are discussing measures to ease the border situation, including creating no-patrol zones along the Line of Actual Control (LAC) and upgrading the border management mechanism.

    Older arrangements and need for new measures

    • Blockades: In 2020, the older arrangements, shaped by the agreements of 1993, 1996, 2005 and 2013, came apart in Ladakh after the Chinese massed troops in Tibet and established blockades at six points on the Line of Actual Control (LAC) to prevent Indian troops from patrolling the border.
    • Clashes: A clash at Galwan in June 2020 led to the deaths of 20 Indian and four Chinese soldiers, the first such losses on the LAC since 1975. The Sino-Indian clash, in December 2022, at Yangtse, north-east of Tawang, suggests that new measures may be needed across the LAC, and not just in Ladakh.

    Attempts to Ease the Border Situation

    • Working Mechanism for Consultation and Coordination (WMCC): Important discussions that took place between Indian Ministry of External Affairs and the Ministry of Foreign Affairs, China, met in Beijing for the 26th Meeting of the Working WMCC on China-India Border Affairs, on February 22, 2023. This was the first in-person meeting of the WMCC that had held the previous 11 rounds since the 2020 events by video conference.
    • Other Measures: Discussions have taken up the issue of upgrading the border management means to replace the WMCC with a mechanism that will have both military and civilian officers. The no-patrol zones could lead to a package settlement in the two remaining areas of Depsang and Charding Nala.
    • Confidence-building Measures: The entire range of confidence-building measures since 1993 was premised on the belief that both sides largely accepted the lay of the LAC, though they had differences that related to some 18-20 points on it. The 1993 and 1996 agreements specifically spoke about the importance of identifying and resolving these differences.
    • No-patrol zones: The no-patrol zones could be confined to the places where the two sides have overlapping claims. Chinese journalist-scholar Qian Feng suggested that the concept of the zone of actual control could replace the “line of actual control” in some areas that had no obvious geomorphological features or population.

    The Idea of Shifting the Goalposts

    • The idea of creating no-patrol zones is an echo of the original proposal by Chinese Premier Zhou Enlai following a similar set of circumstances experienced today.
    • In October 1959, an Indian police party was ambushed at Kongka La leading to the deaths of 10 personnel and the capture of another dozen.
    • Zhou proposed to Prime Minister Jawaharlal Nehru in a letter of November 7, 1959, that both sides withdraw 20 kilometers from the so-called McMahon Line, as well as the line up to which each side exercises control in the west.

    Conclusion

    • Creating no-patrol zones along the LAC could be a possible solution to the border conflict, as well as upgrading the border management mechanism to include both military and civilian officers.

    Mains Question

    Q. Discuss the recent developments in the India-China border conflict and the measures being taken to maintain peace and tranquillity along the border

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  • Modern Indian History-Events and Personalities

    The Decolonization Drive: Monuments of National Importance Reflects Bharat’s history

    op-ed snap | | Mains Paper 1: Modern Indian History

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Monuments of National Importance

    Mains level: Monuments of National Importance, Shedding the colonial legacy, Promoting India's rich heritage rationally

    Central Idea

    • The decolonization drive started by the present government in India to change the British mindset of those responsible for writing history books, which led to the neglect of important monuments and archaeological sites. The Economic Advisory Council’s report on Monuments of National Importance, which he sees as a significant step in the right direction for the preservation and designation of monuments that reflect Bharat’s history. There are some anomalies in the list of monuments of national importance and suggests changes in the way India looks at the preservation of monuments.

    What are the recommendations given by the report?

    • Rationalise and evolve criteria for India’s list of monuments: The report underlined the urgent need to rationalise India’s list of monuments of national importance and recommended that the ASI should evolve substantive criteria and a detailed procedure for declaring monuments to be of national importance.
    • Book of detailed information: ASI should publish a book of notifications with detailed information about each MNI’s provenance, hand over protection and upkeep of monuments of local importance to respective states and denotify to the extent possible, all standalone antiquities like cannons and statues.
    • Funds: Allocation of funds for the preservation of MNI should be increased and ASI should retain the proceeds generated from revenue streams like tickets, events, fees and other sources.

    Neglect of Monuments and Archaeological Sites in Post-Independence India

    • Inadequate efforts: After India’s independence, little effort was made to correct the British mindset of those responsible for writing history books, which resulted in the neglect of monuments and archaeological sites.
    • British view of India: History books continued to teach the history of India’s defeats and its enemies’ victories, which perpetuated the British view of India.

    The Decolonization Drive under the present Government

    • National Heroes: The present government led by PM Modi started the decolonisation drive to bring out the sagas of King Suheldev, Rani Durgavati, and Lachit Barphukan, among others.
    • For example: The government highlighted the story of the founder-king of Delhi, Anangpal Tomar, and declared the neglected Anang Tal as a monument of national importance.
    • Names, sites, insignia of national importance: The government also held national and international events at the Sindhu-Saraswati site of Dholavira and unveiled a new Shivaji-era inspired naval insignia.

    Significance of this Report

    • The Economic Advisory Council’s report on Monuments of National Importance is a significant step in the right direction.
    • The report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history.
    • All the recommendations made by the report can be implemented without amending the Ancient Monuments and Archaeological Sites and Remains Act and need only executive orders.

    Anomalies in the List of Monuments of National Importance

    • There are some anomalies in the list of monuments of national importance.
    • There is not a single monument connected with the struggles of Dalits and B R Ambedkar’s life that has been declared a national monument.
    • Some monuments, like Tota-Maina ki Qabar and Dadi Poti ka Gumbad, have no history, and nobody knows whether they should be declared as Monuments of National Importance.
    • Therefore, all agencies working on monuments be unshackled from the British slave mindset and given into the hands of those who know their subject.

    Conclusion

    • There is hope that the Bibek Debroy-Sanjeev Sanyal report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history. There is the need for an Archaeological Foundation to preserve the civilizational and revolutionary monuments of India.

    Mains Question

    Q. Discuss the recommendations given by the Economic Advisory Council’s report on Monuments of National Importance and its significance in preserving and designating monuments that reflect Bharat’s history.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Operation Greens Scheme: TOP Farmers Protests And A Way Ahead

    op-ed snap | Economics | Mains Paper 3: Agriculture and related issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Operation Greens Scheme

    Mains level: Operation Greens Scheme; TOP farmers concerns and solution

    Central Idea

    • The Operation Greens scheme aimed to develop a value chain for reducing extreme price fluctuations in the three basic vegetables (tomatoes, onions, and potatoes), enhance farmers’ realizations, and improve their share of the consumer rupee. However, the scheme has not been successful in achieving its goals, as seen by the recent protests against low prices by onion and potato farmers.

    What is Operation Greens scheme?

    pib] Operation Greens Scheme - Civilsdaily

    • The Operation Greens scheme is a government initiative launched in the 2018-19 Union budget by the present government.
    • It aims to develop a value chain for reducing extreme price fluctuations in the three basic vegetables, including tomatoes, onions, and potatoes (TOP).
    • The scheme was later expanded to 22 perishable crops in the 2021-22 budget.
    • The government hopes that by developing a sustainable value chain for these perishable commodities, farmers will benefit from better price realization, while consumers will have access to quality products at reasonable prices.

    Aim & Objectives:

    • To enhance value realization of TOP farmers; reduction in post-harvest losses; price stabilization for producer and consumers and increase in food processing capacities and value addition.
    • Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual-use varieties.
    • Reducing post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
    • Increasing food processing capacities and value addition in the TOP value chain with firm linkages with production clusters.
    • Setting up a market intelligence network to collect and collate real-time data on demand and supply and price of TOP crops.

    Components:

    • Short-term intervention by way of providing transportation and storage subsidy @ 50% and
    • long-term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of the eligible project cost subject to a maximum of Rs. 50 crore per project

    Limited Success of Operation Greens Scheme

    • Retail tomato prices: Tomato prices in wholesale markets have dropped significantly, but retail prices have not reduced much, indicating limited success.
    • Low Onion price: Onion and potato farmers are protesting against low prices, highlighting the scheme’s lack of effectiveness.
    • For instance: There are protests by Maharashtra’s onion growers against low prices, including relay hunger fasts, stoppage of auctions at major mandis, and a 200-km march to Mumbai. Similarly, potato farmers in Uttar Pradesh have demanded that the government procure their tuber at Rs 10 per kg, as against the ruling Rs 6-6.5/kg market price at Agra.

    Reasons behind its limited success

    • Problem Not with Lack of Storage or Processing Capacity: UP alone has an abundance of cold stores with ample capacity to store perishable goods like potatoes. Maharashtra’s growers have built enough kandha chawls to store onions for 4-6 months. Despite the creation of storage capacity, price volatility persists in milk and cane payment arrears to farmers.
    • Price Volatility: The prices of TOP crops have been volatile, which has adversely affected both farmers and consumers. The prices of these commodities tend to fluctuate sharply due to seasonality, weather conditions, and other factors, resulting in uncertainty and instability in the market.
    • Implementation Issues: The scheme’s implementation has been marred by delays, bureaucratic hurdles, and lack of coordination among various stakeholders, which has resulted in low participation and limited success.
    • Lack of Market Linkages: Another reason for limited success is the lack of market linkages between producers and consumers. The farmers are unable to access markets directly, which leads to dependence on intermediaries who manipulate prices, resulting in price volatility.

    Need for Price or Income Assurance for Farmers

    • Investment: Investment in farm-gate, agri-logistics, and storage-cum-processing infrastructure needs to be encouraged.
    • Assurance: Price or income assurance for farmers is necessary, especially for horticulture, dairy, and poultry producers who do not enjoy minimum support price benefits.
    • Diversification: The future for Indian agriculture lies in crop diversification, which will spur greater consumption of foods incorporating proteins (pulses, milk, eggs, and meat) and micro-nutrients (fruits and vegetables), instead of only calories and carbohydrates.
    • Deficiency price payments: The deficiency price payments or per-hectare direct income transfers could be the way forward.

    Conclusion

    • It is evident that the limited success of the Operation Greens scheme underscores the urgent need for a more comprehensive approach to address the challenges faced by TOP farmers. A more holistic approach is required that prioritizes farmer empowerment, investment in infrastructure, and promotion of crop diversification. By adopting such an approach, the government can not only mitigate the impact of price volatility on farmers but also achieve its broader goal of building a sustainable and resilient agricultural sector that benefits both producers and consumers alike.

    Mains Question

    Q. What is Operation Greens scheme? Analyse its limited success in achieving its objectives and Suggest measures to improve the scheme’s effectiveness.

     

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  • Hunger and Nutrition Issues – GHI, GNI, etc.

    Undernutrition: Healthy Human Capital Is The Real Wealth

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Stunting, wasting, Human capital Index

    Mains level: Undernutrition a significant challenge

    “Healthy women and children are pillars of a flourishing society”

    Central Idea

    • Undernutrition is a serious public health issue leading to adverse health consequences and affecting the economy, especially in India. Early stimulation and nutrition interventions in infants and young children lead to improved outcomes in adult life. India ranks poorly on the Human Capital Index and has high levels of stunting, anaemia, and malnutrition. Evidence suggests investing in maternal and early-life nutrition leads to high returns on investment.

    Undernutrition leads to adverse health consequences and affects the economy

    • Child deaths: Undernutrition leads to 3.1 million child deaths annually, which accounts for 45 percent of all child deaths.
    • High levels of stunting In India: India has unacceptably high levels of stunting (35.5 percent), despite marginal improvement over the years.
    • Stunting affects per capita income: Two-thirds of India’s current workforce is stunted, which has enormous economic costs in terms of a decrease in per capita income. The average reduction in per capita income for developing countries is at 7 percent, with a high of 13 percent for India due to the high rates of stunting.
    • Wasting in India: The economic losses incurred by India due to wasting are estimated at more than US $48 billion in terms of lifetime lost productivity.
    • Anaemia: Another compounding factor is anaemia among young women, at 57 percent, which has lasting effects on their future pregnancies and childbirth. The situation further worsens when infants are fed inadequate diets, and there is inadequate sanitation and hygiene.

    Investing in the well-being of women and children is an effective strategy

    • Investing in early childhood: Evidence suggests that every additional dollar invested in quality early childhood programs yields a return of between US$6 and US$17.
    • Better income in future: Early stimulation in infants is known to increase their future earnings by 25 percent. Stunting in childhood leads to impaired brain development, lower cognitive skills and education, leading to lower incomes in the future.
    • For instance: According to estimates, children who are stunted earn 20 percent less as adults than children who are not stunted.

    Increased investment in human capital brings economic growth

    • Human capital is the real wealth: The human capital is the wealth of nations and is dependent on the health, nutrition, skills, and knowledge of people.
    • Effective strategy: Evidence suggests investing in the well-being of women and children as an effective strategy for improved outcomes for children.
    • India’s ranking in Human capital Index: India ranks 116 out of 174 countries as per the Human Capital Index, with a score of 0.49 that indicates a child born in India will be 49 percent productive if provided with complete education and good health.
    • Education: Education to children plays a pivotal role in amassing human capital, improving productivity, and economic development. It has been advocated to target the 1000 days’ period from conception to two years of age for improving birth and nutrition outcomes.

    Coupling nutrition-specific interventions with nutrition-sensitive programs

    • Nutrition-sensitive interventions: Nutrition-sensitive interventions like water, sanitation, and hygiene (WASH) focus on the underlying determinants as poor sanitation can lead to stunting.
    • Integrated water and sanitation improvement program: Evidence suggests both short term and long-term reductions in diarrhoea episodes (3-50 percent) through an integrated water and sanitation improvement program in rural India. WASH can bring significant gains in tackling childhood undernutrition and are important determinants of stunting.
    • Nutrition of pregnant women and young children: Studies suggest long term benefits on adult human capital and health by improving the nutrition of pregnant women and young children.
    • For instance: The first 1000 days of life is the time for rapid growth and development, and lack of good nutrition can lead to lifelong adverse consequences. This period is a critical window of opportunity as stunting sets in during this period and aggravates by the age of two years.

    Disparities in Undernutrition Prevalence

    • Data (NFHS 5) reveals that India has more stunted children in rural areas as compared to urban areas, possibly due to socio-economic variance.
    • Stunting prevalence varies depending on mother’s education and household income,
    • There is wide variation among regions, with high rates of stunting in states of Meghalaya (46.5 percent) and Bihar (42.9 percent) while states like Sikkim and Puducherry have lowest at 22.3 percent and 20 percent respectively.
    • Notable inter-state and inter-district variation in terms of stunting prevalence.

    Way ahead

    • Investing in healthcare facilities is crucial for enhancing productivity, economic growth, and security in India.
    • Addressing undernutrition is necessary for producing and maintaining a healthy, highly skilled workforce in India.
    • Cost-effective investments in child health, nutrition, and education are necessary for improving public health and achieving economic growth in India.

    Conclusion

    • Healthy human capital is the true wealth of any nation. In India, undernutrition is a significant public health concern that not only affects the well-being of women and children but also has adverse economic implications. Therefore, addressing undernutrition is critical for creating a healthy, skilled workforce, ensuring economic growth and security in India.

    Mains Question

    Q. What is India’s ranking on the Human Capital Index, and how does investing in the well-being of women and children contribute to economic growth?

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    National Champions Model for Infrastructure Development: Pros and Cons

    op-ed snap | Economics | Mains Paper 3: Investment Models

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: National Champions Model for Infrastructure Development, Advantages and disadvantages

    National

    Central Idea

    • Emerging economies struggle to provide functional and efficient infrastructure. Infrastructure has become a national aspiration good, a mechanism for job creation, and a necessity. The two biggest constraints on infrastructure provision are cost and public good component. This national champion’s model aims to incentivize private sector participation in infrastructure investments, but it also has its own set of challenges and limitations.

    Traditional Financing Approaches and their Limitations

    • The traditional approach to financing infrastructure has relied on tax revenues or government borrowing.
    • However, this creates a vicious trap as poorer economies generate less tax revenue, which limits infrastructure investment, leading to a further spinoff that affects the growth of the economy and keeps the country poor.
    • Increasing public borrowing domestically tends to crowd out private investment, exacerbating the problem.

    National

    The Public-Private Partnership Model and its Problems

    • The Indian government tried to incentivize private sector participation in infrastructure investment by introducing the Public-Private-Partnership (PPP) model in the early 2000s.
    • While the PPP model led to the construction of a lot of infrastructure, it ended in an avalanche of non-performing assets with public sector banks, private sector bankruptcies, accusations of widespread corruption, and a change in government in 2014.

    National

    The National Champions Model and its Innovations

    • The present government has modified the PPP approach by assigning the bulk of infrastructure provisioning for roads, ports, airports, energy, and communications to a few chosen industrial houses.
    • This is the national champions model where the government picks a few large conglomerates to implement its development priorities.
    • This model incentivizes national champions to build projects by providing subsidies to cover the costs.
    • New aspects of the National Champions Model:
    1. National champions need control over existing projects with strong cash flows to incentivize investment in projects with low returns and negative cash flows.
    2. Public association of champions with the government’s national development policy generates a competitive advantage for the champions in getting domestic and foreign contracts.
    3. Access to some cash-rich projects allows national champions to borrow from external credit markets by using these entities as collateral, which lowers the cost of finance of other.

    Benefits of National Champions Model

    • Economic growth: National champions can contribute to economic growth by generating revenue, creating jobs, and investing in research and development.
    • Strategic importance: The model can help ensure that the country has a strong presence in strategically important industries, such as defense or energy, which can be critical to national security.
    • Export competitiveness: National champions can become leaders in their respective markets and compete effectively in global markets, which can increase exports and improve the country’s trade balance.
    • Innovation: National champions can invest heavily in research and development, leading to technological advancements that can benefit the broader economy.
    • Access to capital: National champions may be able to access capital more easily than smaller companies, allowing them to make larger investments and pursue growth opportunities.

    The Problems with the National Champions Model

    • Too big to fail: Market and regulatory treatment of conglomerates as too big to fail. This means that these companies are so large and important to the economy that their failure could cause widespread harm to the financial system and the economy as a whole. This opens the door to market hysteria, delayed discovery of problems, and spillovers of sectoral problems into systemic shocks. The recent troubles of the Adani companies in India highlight the potential risks associated with this approach.
    • Encouraging market concentration that can be bad for efficiency and productivity: Concentrated markets reduce competition and can lead to higher prices, lower quality, and reduced innovation. When firms have market power, they have less incentive to improve their products or services, reduce costs, or innovate. This can result in lower overall productivity in the economy.
    • The risk of turning the country into an industrial oligarchy: An industrial oligarchy is where a small group of powerful and influential conglomerates control a large portion of the economy. This can have negative consequences for economic growth, social mobility, and political stability. An oligarchy may be resistant to change and less responsive to the needs and aspirations of the broader population.
    • Uneven playing field: The optics of an uneven playing field in terms of market access and selective regulatory forbearance that can become a significant deterrent for foreign investors.

    National

    Conclusion

    • While infrastructure is a necessary condition for growth, it is not a sufficient one. Effective demand is the problem, as seen in the power sector, where the inability of the power distribution companies to recover payments was the issue. India is at an inflection point in its development path, and the national champions model has its pros and cons that needs to be analyzed before its consideration.

    Mains Question

    Q. What is National Champions Model for Infrastructure development in India? Discuss its advantages and disadvantages.

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    Child Marriage And The Role of Education: Analysis

    op-ed snap | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Child marriage, Reasons, Challenges and solutions

    Marriage

    Central Idea

    • When the Assam government launched a massive crackdown on child marriage, social activists pointed out that the root of the problem, i.e., limited access to education among women, is not being sufficiently addressed. National Family Health Survey (NFHS) data show that higher education levels could play a greater role than wealth in delaying a woman’s marriage. The data also reflect wide variations between the marital age of rural and urban women, and Dalit and upper-caste women.

    Does education or wealth play a greater role in determining when a woman gets married?

    • Education is significant: Education has a longer history of being significant in delaying a woman’s marriage.
    • For instance: Depending on National Family Health Survey (NFHS) data, education has had a steady influence, while poverty has had an increasing influence over time.
    • Poverty: Poverty is the greatest determinant of early marriage as the poor do not want to wait due to the increasing demand for dowry. Wealthier people are no longer marrying their daughters early.

    What role does marriage play in India?

    Marriage plays a significant role in India as it serves multiple purposes.

    • Most significant institution: It is considered the most significant institution for daughters as it fulfills the family’s responsibility towards them. For sons, the responsibility is to settle them in a job, which will hopefully lead to marriage.
    • Social identity: Marriage is crucial for social identity, and a woman who remains single is an anomaly because almost everyone gets married.
    • Sexual respectability: marriage is essential for sexual respectability as those who wish to have social respect have sexual relationships within marriage.
    • Legitimate children: Marriage provides the option to have children, and having a child without a husband is completely unacceptable in the Indian context.

    Marriage

    What advantages that families see in getting women married earlier instead of educating them further?

    • Dowry: This dowry can be a significant financial burden for families, and getting their daughters married early may be seen as a way to reduce this expense. The more educated a girl, the more the boy has to be educated too and the higher the dowry.
    • Transfer of responsibility: Families feel there is the responsibility of protecting her sexually before marriage. And that responsibility gets transferred to the boy’s family. After marriage, the girl goes to live with her husband’s family, so why spend on her education?
    • Maintenance of caste and community lines: In some cultures, marrying within one’s own caste and community is essential to maintain social status and cultural traditions. Early marriage may be seen as a way to ensure that women are married within their caste and community and preserve cultural practices.

    Marriage

    Women are increasingly getting access to education. Does this result in more empowerment? 

    1. Advantages of Women’s Access to Education:
    • Education provides women with knowledge and skills that lead to greater empowerment and the ability to make informed decisions about their lives.
    • Educated women are more likely to participate in the workforce, earn higher wages, and have better health outcomes.
    • Access to education can challenge traditional gender norms and stereotypes, creating new opportunities for women and girls.
    • Education can increase women’s bargaining power within their families and communities, allowing them to negotiate for better living conditions, higher earnings, and greater autonomy.
    1. Challenges in Women’s Employment
    • The female labor force participation rate is low at 25%, and job losses have been especially harmful to women.
    • Despite increased access to education, there is a high proportion of educated but unemployed women.
    • Women who enter the corporate sector often face hostility or are unable to balance domestic expectations with work demands.
    • The conjugal contract between men and women remains largely unchanged, with women assuming the majority of domestic burdens and men often having power over family decisions.
    1. Impact of Age of Marriage
    • Increasing the age of marriage may not automatically lead to greater empowerment, autonomy, or freedom for women.
    • While delaying marriage may provide women with more opportunities to pursue education and careers, there is still a significant gender gap in employment and earnings.
    • Low and declining employment rates may also result in a greater burden on marriage as a means of economic security.

    Why women in SC/ST/OBC communities get married at  younger age than even those in rural India?

    • Socio-economic factors: Women in SC/ST/OBC communities tend to get married at younger ages than even those in rural areas due to a combination of social and economic factors.
    • Sense of social disadvantage: Families who belong to these groups experience a sense of social disadvantage in the marriage market, but they are also often poor, with lower wealth quintiles being disproportionately populated by SC, ST, and OBCs.
    • Caste and poverty: There is a fair deal of correlation between caste and poverty in these communities, with many lacking decent work and being vulnerable to violence from those higher in the hierarchy.
    • Vulnerability: Girls from these communities are even more vulnerable to such issues, with Dalit girls being particularly susceptible to sexual predators as young upper-caste men feel that they have a right of access.
    • Marriage as protection: Marriage can be seen as a form of protection for girls from these communities, but the issue of early marriage is complex and influenced by a range of factors.

    Marriage

    Conclusion

    • The issue of child marriage in India is complex and deeply rooted in societal norms, poverty, and caste systems. Despite the progress in education and women’s empowerment, there are still challenges. The issue of child marriage requires a comprehensive approach that addresses the underlying societal and economic factors that perpetuate the practice.

    Mains Question

    Q. Discuss the role of education and wealth in determining the age at which women get married in India.

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