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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    South Asia Need to Invest In Human Capital

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: South Asian region

    Mains level: South Asia, Human capital, economic growth and challenges

    South Asia

    Central Idea

    • The last few years have ushered in a harsh new reality where crises are the norm rather than the exception. Pandemics, economic slumps and extreme weather events were once tail-end risks, but all three have hit South Asia in rapid succession since 2020.  To strengthen resilience and protect the well-being of future generations, governments across South Asia need to take urgent policy action and invest in human capital.

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    South Asia Overview

    • Countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
    • Population: The region has a total population of over 1.8 billion people, making it the most populous region in the world.
    • Geography: South Asia has a diverse geography, with mountain ranges such as the Himalayas and Hindu Kush, major rivers like the Ganges, Indus, and Brahmaputra, and coastal areas along the Arabian Sea, Bay of Bengal, and Indian Ocean.
    • Economy: India is the largest economy in the region, accounting for more than 70% of the region’s total GDP. Agriculture is a major employer in most countries, with rice and wheat being staple crops. The manufacturing sector is also a significant contributor to the region’s economy, with textiles, garments, and leather products being major exports
    • Climate: The climate of South Asia is varied, with the monsoon season bringing heavy rainfall to much of the region and causing flooding in some areas. The region’s geography and size also result in varying climate patterns. In general, the region experiences hot and humid summers and mild winters.
    • Climate Change Risks: Climate change poses significant risks to the region, with some areas, such as the Maldives, at risk of sea level rise. Other risks include increased frequency and severity of extreme weather events, such as floods and droughts. The region is also vulnerable to the impacts of climate change on health, including increased incidence of heat-related illness and infectious diseases.
    • Biodiversity and Environmental Threats:
    • South Asia is home to several biodiversity hotspots, such as the Western Ghats in India and the Eastern Himalayas.
    • However, the region faces significant environmental threats, such as deforestation, air and water pollution, and climate change.
    • Deforestation is a major problem in the region, with logging and land use change leading to habitat destruction and loss of biodiversity.

    South Asia

    An underutilized asset of South Asia: Analysis

    • South Asia’s people are its biggest asset but remain wastefully underutilized:
    • With nearly half its population under the age of 24 and over one million young people set to enter the labour force every month until 2030, the region could reap an enviably high demographic dividend.
    • Stunting one of the significant challenges: South Asia is also home to over one third of the world’s stunted children. And a child born in the region today can, by the age of 18, expect to attain only 48% of their full productive potential.
    • Governments spending on Health and education: South Asian governments on average spend just 1% of GDP on health and 2.5% on education. In comparison, the global average is 5.9% on health and 3.7% on education.
    • COVID-19 pandemic, a blow to regions human capital: The COVID-19 pandemic, which pushed an additional 35 million people across South Asia into extreme poverty, dealt an unprecedented blow to the region’s human capital. Among its most woeful impacts is a rise in learning poverty, or the inability to read and understand a simple text by age 10. Ineffective remote instruction, during the pandemic increased South Asia’s learning poverty from 60% to 78%.
    • The poorest and most vulnerable people fell further behind: For example, in Bangladesh, the poorest students lost 50% more in terms of learning than the richest students. Several countries still show little to no signs of recovery, and South Asia’s students could lose up to 14.4% of their future earnings.

    Interventions that can make a difference

    • Affordable education: Recent evidence suggests that even simple and low-cost education programmes can lead to sizable gains in skills.
    • For instance:
    • In Bangladesh attending a year of additional pre-school through two-hour sessions significantly improved literacy, numeracy, and social-development scores.
    • In Tamil Nadu, six months of extra remedial classes after school helped students catch up on about two-thirds of lost learning linked to 18 months of school closures.
    • In Nepal, government teachers ran a phone tutoring programme that helped increase students’ foundational numeracy by 30%.
    • Robust systems for crisis management: The need for countries to have robust systems in place to support individuals and families during times of crisis. Such systems, which can include social safety nets, health care, and education programs, can help to mitigate the impact of crises like the pandemic, protect vulnerable populations, and promote resilience. By investing in these systems before a crisis strikes, countries can better prepare themselves to respond to the challenges that may arise.
    • Use data and technology: Effective systems are needed to respond to crises quickly and maintain vital services like healthcare and education. Coordination across sectors is important. Data and technology play a crucial role in the delivery of services, human development systems should ensure they are effectively used.

    South Asia

    World Bank study: Interdependence of health, education and skills for human development

    • A new World Bank study, Collapse and Recovery: how COVID eroded human capital and what to do about it, analyses the pandemic’s impacts on young people, stresses the multi-dimensional and complementary nature of human development.
    • The health, education, and skills people acquire at various stages of their lives, build and depend on each other.
    • To be effective, human development systems must recognise and exploit these overlapping connections. In other words, they should be agile, resilient and adaptive.

    Conclusion

    • The road ahead for South Asia is rocky. The next crisis may be just around the corner. A robust human development system would not only mitigate the damage but also help ensure lives and livelihoods are protected. It could provide the resilience South Asia needs to prosper in an increasingly volatile world. While the outlook is grim, it is important to remember that well-designed and implemented interventions can make a difference if governments act fast.

    Mains question

    Q. South Asia possesses remarkable human capital, but it remains underutilized and has been further impacted by the COVID-19 pandemic. Discuss and suggest what can be done to address the issues?

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Heatwaves in India: A Serious Concern

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Heat waves

    Mains level: Climate Change induced rising temperatures, Heatwaves, Socio-economic impact and measures

    Heatwave

    Central Idea

    • Heat waves have become a major concern for India this year. The scorching summer heat has started prematurely, as per the recent IMD reports. If the record temperatures of the recent past are any indication, the heat wave is likely to become more intense. Rising temperatures lead to several health problems, from dehydration and heat exhaustion to more severe conditions like heatstroke. They also affect the economy and the environment.

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    What is Heat wave?

    • A heatwave is a prolonged period of abnormally hot weather.
    • Heatwaves usually last for several days or weeks and can occur in both dry and humid climates. They are characterized by temperatures that are significantly higher than the average for a particular region during that time of year.
    • This is because climate change is causing a rise in global temperatures. As the planet heats up, it leads to more extreme weather events, such as heat waves. Its geography makes India particularly vulnerable to these events.

    Heatwaves in India

    • In India Heat waves typically occur from March to June, and in some rare cases, even extend till July.
    • On an average, five-six heat wave events occur every year over the northern parts of the country.
    • Single events can last weeks, occur consecutively, and can impact large population.
    • Its geography makes India particularly vulnerable to these events.

    Some of the hottest summers on record in recent years that India has experienced

    • In May 2016, Phalodi in Rajasthan registered 51 degrees Celsius, the highest temperature ever recorded in the country.
    • In 2021, India saw its hottest day on May 22, with the temperature touching 48 degrees Celsius in Barmer, also in Rajasthan.
    • In 2022, Jaipur experienced a severe heatwave. Rajasthan’s capital recorded 45 degrees Celsius in April a record for the city for the month.
    • Delhi, Agra, Pilani and Rohtak are among the well-known hot cities in India, where temperatures, of late, have gone up to 43 degrees Celsius in early summer

    Link: Climate change and Heat waves

    • Rising heat waves: Climate change is directly linked to the increase in the frequency, intensity, and duration of heatwaves around the world.
    • More severe and more frequent: As the Earth’s climate continues to warm, heatwaves are becoming more severe and occurring more frequently.
    • Global warming: This is because global warming is causing changes in the atmosphere, such as increased greenhouse gas concentrations, which trap heat and cause temperatures to rise.
    • For instance: Climate change is also causing heatwaves to last longer. A study published in the journal Environmental Research Letters found that heatwaves are lasting an average of 2.5 days longer than they did in the middle of the 20th century.

    Heatwave

    The Socio-economic impact of heat waves

    1. Impact on Health: Heat-related illnesses, such as heat exhaustion and heatstroke, are becoming more common, particularly among vulnerable groups such as the elderly, children, and outdoor workers.
    • In addition, heat waves can exacerbate existing health problems, such as respiratory and cardiovascular diseases.
    1. Impact on the environment
    • One of the biggest problems is the depletion of water resources:
    • Water sources are drying up as temperatures rise, leading to crises in many parts of the country.
    • As people try to keep cool, they use more air conditioning, increasing electricity use. This leads to an increase in the use of fossil fuels, which significantly contributes to air pollution.
    1. Impact on agriculture:
    • Impact on environment in turn, leads to agricultural problems, with crops failing and farmers struggling to make a living.
    • Given that around 40 per cent of India’s population is engaged in agriculture, this is a significant concern.
    • Reports are already coming from Punjab and Western Uttar Pradesh that the early heatwave has affected the growth of wheat crops and is expected to negatively affect the crop to the tune of 20 per cent.
    1. Impact on growth:
    • The healthcare costs associated with heat-related illnesses can be significant, particularly for vulnerable groups who may not have access to affordable healthcare.
    • In addition, heat waves can lead to a decrease in worker productivity, which can impact economic growth.

    Heatwave

    What can be done to deal with such problems?

    • Increase public awareness: People need to be educated about the impact of rising temperatures on their health, the environment, and the economy. This can be done through public campaigns, schools, and the media.
    • Increase the use of renewable energy: India has already made significant progress in this area. However, much remains to be done. The government could incentivise individuals and businesses to invest in renewable energy, such as solar panels. This would help reduce the impact of rising temperatures, create new jobs, and stimulate economic growth.
    • Improving water management: This could include introducing more efficient irrigation systems, better rainwater harvesting, and using recycled water for non-potable purposes. This would help to conserve water resources and reduce the impact of rising temperatures on agriculture.
    • Investing in infrastructure that can cope with extreme temperatures: This could include the construction of roads and buildings that are designed to withstand high temperatures, as well as the development of more efficient cooling systems that use less energy.

    Heatwave

    Conclusion

    • The rising heat wave in India is a serious concern that needs to be addressed urgently. The impacts of rising temperatures on human health, the environment, and the economy are significant. However, with the right strategies in place, it is possible to mitigate the impact of rising temperatures and ensure a sustainable future for the country.

    Mains Question

    Q. Climate change is exacerbating the problem of heat waves. In this backdrop discuss its socioeconomic impact and what measures can be done to tackle this problem?

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  • Poverty Eradication – Definition, Debates, etc.

    SDGs: India’s Progress Analysis

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Sustainable Development Goals

    Mains level: India's progress in achieving SDG targets

    SDG

    Central Idea

    • A recent analysis published in The Lancet has concluded that India is not on-target to achieve 19 of the 33 Sustainable Development Goals (SDGs) indicators. The critical off-target indicators include access to basic services, wasting and overweight children, anaemia, child marriage, partner violence, tobacco use, and modern contraceptive use.

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    Analysis

    • On-Target: Districts that have not met the SDG target by 2021 and have observed a magnitude of improvement between 2016 and 2021 sufficient to meet the target by 2030.
    • Off-Target: Districts that have not met the SDG target by 2021 and either observed worsening between 2016 and 2021 or observed an insufficient magnitude of improvement between 2016 and 2021. If these districts continue with either of these trends, they will not meet their targets by 2030.
    • Progress in: Indicators shows the progress in reducing adolescent pregnancy, tobacco use in women, multidimensional poverty, teenage sexual violence, and improving electricity access.
    • Areas where more efforts are needed: More efforts are needed for reducing anaemia in women, improving access to basic services, providing health insurance for women, and reducing anaemia in pregnant women.

    Sustainable Development Goals (SDGs)

    • The SDGs, otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.
    • The SDGs were adopted by the United Nations in 2015 with a vision to achieve a better and more sustainable future for all. The 17 SDGs came into force with effect from 1st January 2016 as a part of 2030 Agenda for Sustainable Development.
    • India is one of the signatory countries that has committed to achieving these goals by 2030.
    • Though not legally binding, the SDGs have become de facto international obligations and have the potential to reorient domestic spending priorities of the countries during the next fifteen years.
    • Countries are expected to take ownership and establish a national framework for achieving these goals.

    SDG

    Targets set for each of the SDGs

    • No Poverty: By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
    • Zero Hunger: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.
    • Quality Education: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.
    • Gender Equality: End all forms of discrimination, violence, harmful practices against all women and girls everywhere. Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.

    SDG

    India’s progress towards achieving SDGs so far

    • SDG 1 (No Poverty): India has made significant progress in reducing poverty, with the poverty rate declining from 21.9% in 2011-12 to 4.4% in 2020. The government’s efforts to provide financial inclusion and social protection schemes have contributed to this progress.
    • SDG 2 (Zero Hunger): India has made progress in reducing hunger, with the prevalence of undernourishment declining from 17.3% in 2004-06 to 14% in 2017-19. The government’s initiatives such as the National Food Security Act and the Pradhan Mantri Garib Kalyan Anna Yojana have contributed to this progress.
    • SDG 3 (Good Health and Well-being): India has made progress in improving maternal and child health, with maternal mortality ratio declining from 167 per 100,000 live births in 2011-13 to 113 in 2016-18. The government’s efforts to strengthen health systems and increase access to healthcare services have contributed to this progress.
    • SDG 4 (Quality Education): India has made progress in improving access to education, with the gross enrolment ratio for primary education increasing from 93.4% in 2014-15 to 94.3% in 2019-20. The government’s initiatives such as the Sarva Shiksha Abhiyan and the Right to Education Act have contributed to this progress.
    • SDG 5 (Gender Equality): India has made progress in improving gender equality, with the sex ratio at birth increasing from 918 in 2011 to 934 in 2020. The government’s initiatives such as the Beti Bachao Beti Padhao and the Maternity Benefit Programme have contributed to this progress.

    Recent findings by National Family Health Survey

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

    Conclusion

    • The analysis provides a valuable tool for policymakers to address the gaps and focus on the indicators that require more attention, thereby improving the well-being of its citizens and creating a sustainable future for all.

    Mains question

    Q. What are Sustainable Development Goals (SDGs)? Discuss India’s progress made so far in achieving these targets

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  • Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

    Policy: Making India Earthquake Prepared

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Earthquakes, India's earthquake prone regions

    Mains level: India's policy on Earthquake preparedness

    Policy

    Central Idea

    • The destruction caused by earthquakes in Turkey should be alarming for India. Over the last three weeks, tremors have been felt in Himalayan states. Moreover, geologists have warned of a probable massive earthquake in the Himalayan state. In this context the Delhi High Court asked the state government to file a status report and action plan on the structural safety of buildings in Delhi. Nearly 58 per cent of the Indian landmass is vulnerable to earthquakes and the concerns that have been raised by the court need a policy response instead.

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    How do earthquakes happen?

    • According to the theory of plate tectonics, the Earth’s crust and upper mantle are made of large rigid plates that can move relative to one another.
    • Slip on faults near the plate boundaries can result in earthquakes.
    • The point inside the Earth where the earthquake rupture starts is called the focus or hypocentre.
    • The point directly above it on the surface of the Earth is the epicentre.

    What is missing in India’s policy on earthquake preparedness?

    • Current policy operates primarily at the scale of structural details: Guided by the National Building Codes, this includes specifying dimensions of the structural members columns, beams, etc. and details of the reinforcements that join these elements together.
    • While scientifically sound, this view on earthquake preparedness is myopic:
    1. It ignores the buildings that were constructed before such codes were published in 1962. Such buildings form a large part of our cities.
    2. It assumes infallibility in the processes of enforcement, relying only on penalisation and illegalities.
    3. It treats earthquakes as a problem of individual buildings, as if they exist and behave in complete isolation from their urban context.

    What needs to be done?

    • Preparedness at Building and City Scale through policy: Earthquake preparedness, therefore, needs to act at the scale of building details as well as that of cities. Moreover, we must think about it in the realm of policy and not just legal enforcement.
    • Need for Comprehensive Policy: At the scale of building details, we need to create a system of retrofitting existing structures and enforcing seismic codes with more efficiency. While there has been political talk and piecemeal efforts towards retrofitting, we still lack a comprehensive policy.

    A policy should include two measures

    1. Retrofitting Buildings to Seismic Codes:
    • To create a system of tax-based or development rights-based incentives for retrofitting one’s building up to seismic codes.
    • Such a system of incentives will enable the growth of an industry around retrofitting and will generate a body of well-trained professionals and competent organisations.
    1. Improving Seismic Code Enforcement:
    • By ensuring better enforcement of seismic codes through a similar model. A step forward in this direction was the National Retrofitting Programme launched in 2014.
    • Under the programme, the Reserve Bank of India directed banks to deny loans for any building activity that does not meet the standards of earthquake-resistant design.

    Case study: Japan

    • Japan has invested heavily in technological measures to mitigate the damage from the frequent earthquakes that it experiences.
    • Skyscrapers are built with counterweights and other high-tech provisions to minimise the impact of tremors.
    • Small houses are built on flexible foundations and public infrastructure is integrated with automated triggers that cut power, gas, and water lines during earthquakes.
    • All of this has been a result of cultivating an industry around earthquake mitigation and fostering expertise.

    Criteria for an urban-level policy to generate earthquake vulnerability maps

    1. The percentage of vulnerable structures in the area;
    2. The availability of evacuation routes and distances from the nearest open ground;
    3. Density of the urban fabric;
    4. Location of nearest relief services and the efficiency with which these services can reach affected sites.
    • For example: Flood zone mapping is a good example of such an exercise that has proven to be successful in terms of timely evacuation and efficient implementation.

    Conclusion

    • Governments and policymakers ought to know better than act in a piecemeal manner. Programmes like the ongoing Urban 20 meetings are an excellent opportunity for international knowledge exchange on earthquake preparedness. The Delhi High Court’s directions must act as a reminder for the inclusion of an earthquake preparedness policy in urban renewal programmes such as the Smart Cities Mission. A policy on earthquake preparedness requires a visionary, radical and transformative approach.
  • G20 : Economic Cooperation ahead

    G20: Multilateralism and India’s Diplomacy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: G20

    Mains level: India's Multilateralism amidst the global power struggle

    G20

    Central Idea

    • The inability of the G20 finance ministers to agree on a joint statement last week points to an important reality about multilateralism. When great powers are at peace with each other, multilateralism has reasonable chances of success; but when they are at each other’s throats, the room for global cooperation shrinks.

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    What is multilateralism?

    • Multilateralism is an approach in which multiple countries or parties come together to address and solve common problems, through negotiations and cooperation, while respecting each other’s sovereignty and interests.
    • In international relations, multilateralism can take different forms, such as multilateral agreements, treaties, and organizations.
    • The United Nations (UN) is an example of a multilateral organization, which brings together almost all countries in the world to promote peace, development, and cooperation.

    Multilateralism and Major Powers: From Cooperation to Conflict

    1. The Cold War and Multilateralism:
    • Lack of cooperation during the Cold War, except in a few areas such as nuclear arms control
    • The formation of the UN after the Second World War with the expectation of great power cooperation.
    • Allies turning into adversaries and sharp division of the world into competing economic and military blocs.
    1. Post-Cold War Multilateralism:
    • Collapse of the Soviet Union in 1991 led to an expansive phase of multilateralism
    • Great power cooperation at the UN and creation of the WTO
    • The financial crisis of 2008 and the rallying of the top 20 economies to stabilise the global economy.
    1. Current State of Multilateralism
    • World of shared interests among top nations no longer exists
    • Simmering political conflict between Russia and the West, possibility of military conflict between the US and China.
    • Consensus on key issues eludes the G20 today
    • Rising geopolitical conflict mirrored in the economic domain
    • Efforts by the US and China to reduce their massive economic exposure to each other
    • Economic conflict enveloping emerging technologies, especially in the digital domain.

    India’s Multilateral Diplomacy amidst the Great Power Conflict

    • Multilateralism and G20: As the current chair of the G20 in 2023, India has to steer the group amidst the renewed rivalry between the major powers. Reducing the impact of the political conflicts on the G20 would be a diplomatic achievement for India.
    • Delhi’s Troubled Relationship with Beijing: India is part of the great power rivalry with China. The conflict is not just about military assertiveness but also deep differences on multilateral issues
    • Need to Balance China: India cannot stand apart from the great power conflict while representing the Global South at the G20. India has to balance its cooperation and contestation with China in various multilateral forums.
    • India’s Participation in Multiple Multilateral Institutions: India’s approach to multilateralism has evolved from a focus on the UN and NAM to participation in multiple institutions including the Quad and the G7. It is also working to strengthen its coalition with the Global South.

    Conclusion

    • The diversity of India’s multilateralism reflects the structural imperatives of global politics. Delhi must cooperate with adversaries for regional and global problem-solving while wrestling with rivals and collaborating with like-minded countries. Cooperation and contestation balance depend on the issue and context.

    Mains Question

    Q. What do you understand by Multilateralism? India is continuously expanding its multilateral approach. Discuss.

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  • Tobacco: The Silent Killer

    Tobacco consumption: Higher Prices Could Be The Effective way

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Tobacco consumption, Health and socio economic impact

    Tobacco

    Central Idea

    • The share of smokers is declining in India, but smokeless tobacco consumption continues unabated. Smokeless tobacco use is widespread and is a significant public health challenge. The use of smokeless tobacco in India is deeply ingrained in cultural and traditional practices, making it difficult to address through public health interventions.

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    DATA: Tobacco consumption in India

    • High Consumption in north eastern states: In the north-eastern States of India, consumption of tobacco among men in both smokable and chewable forms was higher than the rest of India in 2019-21.
    • Consumption in southern states is relatively low: In the southern States, the share was relatively low with regard to both forms of tobacco consumption. However, among those who smoked, the share of those who consumed more than five sticks a day was much higher in many southern States. So, while smokers were fewer in the south, those who smoked did so heavily.
    • Smokable forms: If only the smokable forms were considered, the share was higher in the northern States of Himachal Pradesh, Uttarakhand, Haryana, J&K U.T. and the eastern State of West Bengal.
    • Chewable forms: If only the chewable forms were considered, the share was higher in the east Jharkhand, Bihar and Odisha and in Uttar Pradesh, Madhya Pradesh and Gujarat.
    • Share of cigarette/bidi smokers is coming down: Overall, in India, the share of cigarette/bidi smokers is coming down. Compared to 2005-06, the share of smokers came down by over 10% points in 2019-21.

    Why is this trend?

    • Increase in prices of smokable forms: According to health economists the reduction in cigarette smoking may be attributed to the increase in the prices of the commodity over time.
    • Price of chewable form have not increased: On the other hand, the prices of bidis and other chewable forms have not increased much, and so consumption too has not reduced much.

    tobacco

    Why price and taxation of tobacco matters?

    • Effective way to reduce consumption: Research from many countries around the world including India shows that a price increase induces people to quit or reduce tobacco use as well as discourages non-users from getting into the habit of tobacco use.
    • For example: a study conducted in India found that a 10% increase in the price of tobacco products led to a 6.4% reduction in tobacco consumption among adults.
    • Higher prices can also discourage young people from taking up smoking: According to the World Health Organization, increasing tobacco prices by 10% can reduce tobacco use among young people by about 4%. This is particularly important as most tobacco users start smoking during adolescence.

    Tobacco consumption: Negative health effects

    • Cancer: Tobacco use is the leading cause of preventable cancer. It can cause cancer of the lungs, mouth, throat, larynx, pancreas, bladder, kidney, and cervix.
    • Respiratory diseases: It may cause chronic obstructive pulmonary disease (COPD), which includes chronic bronchitis and emphysema. It can also worsen asthma symptoms.
    • Cardiovascular diseases: Consumption increases the risk of heart attack, stroke, and other cardiovascular diseases. It damages blood vessels and increases the risk of blood clots.
    • Reproductive health: Tobacco use can lead to infertility, premature birth, and low birth weight in babies.

    Tobacco consumption: Social-Economic Impact

    1. On an individual level:
    • Tobacco consumption can lead to decreased productivity and increased healthcare costs.
    • Smoking-related illnesses can result in absenteeism from work, decreased work performance, and increased medical expenses.
    • In addition, tobacco consumption can lead to decreased life expectancy, which reduces the overall productive years of an individual.
    1. On a societal level:
    • Tobacco consumption can lead to decreased economic development due to the increased burden of healthcare costs and decreased productivity.
    • According to a study conducted by the World Health Organization (WHO), tobacco-related illnesses cost India about $22.4 billion in healthcare costs and lost productivity annually

    tobacco

    Conclusion

    • Tobacco consumption in India has significant socioeconomic and health impacts, particularly on the poor and marginalized sections of the population. Worryingly, after GST implementation, cigarette prices have not increased much. Increasing the price of tobacco products through taxation is a key strategy for reducing tobacco consumption and its associated health and economic costs.

    Mains Question

    Q. Tobacco consumption in India has significant socioeconomic and health impacts? Discuss. Do you think increase in price of tobacco commodities reduces its consumption?

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Current Account Deficit (CAD): Desirable and Undesirable Components

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Current Account Deficit

    Mains level: CAD and deficit financing

    CAD

    Central Idea

    • As per the RBI’s quarterly statistics, the current account deficit (CAD) widened to 4.4 per cent of GDP in the second quarter of 2022-23, down from 2.2 per cent in the preceding quarter. This marks a reversal from an unusual surplus of 0.9 per cent of GDP in 2020-21. In the third quarter of this financial year, while the merchandise trade deficit has widened, the CAD may witness a fall.

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    What is Current Account Deficit (CAD)?

    • Current Account Deficit (CAD) = Trade Deficit + Net Income + Net Transfers
    • A current account is a key component of balance of payments, which is the account of transactions or exchanges made between entities in a country and the rest of the world.
    • This includes a nation’s net trade in products and services, its net earnings on cross border investments including interest and dividends, and its net transfer payments such as remittances and foreign aid.
    • A CAD arises when the value of goods and services imported exceeds the value of exports, while the trade balance refers to the net balance of export and import of goods or merchandise trade.

    Components of Current Account

    1. Trade Deficit
    • Trade Deficit = Imports – Exports
    • A Country is said to have a trade deficit when it imports more goods and services than it exports.
    • Trade deficit is an economic measure of a negative balance of trade in which a country’s imports exceeds its exports.
    • A trade deficit represents an outflow of domestic currency to foreign markets.
    1. Net Income
    • Net Income = Income Earned by MNCs from their investments in India.
    • When foreign investment income exceeds the savings of the country’s residents, then the country has net income deficit.
    • Net income is measured by Payments made to foreigners in the form of dividends of domestic stocks, Interest payments on bonds and Wages paid to foreigners working in the country.
    1. Net Transfers
    • In Net Transfers, foreign residents send back money to their home countries. It also includes government grants to foreigners. It also Includes Remittances, Gifts, Donation etc.

    CAD

    India’s CADs have both desirable and undesirable components

    • Desirable:
    • A desirable deficit is a natural reflection of rising investment, portfolio choices and the demographics of the country.
    • If CADs can be financed by stable capital inflows, such as FDI inflows, they are desirable as they are less prone to capital flight.
    • Stable capital flows are desirable as they allow debtor countries, such as India, to utilize and allocate them into sectors that may yield long-term productive gains and foster higher economic growth.
    • Undesirable:
    • Large and persistent CADs can be undesirable if they reflect bigger problems such as poor export competitiveness and are financed by unstable financing.
    • If deficits are financed by volatile capital flows such as portfolio flows, there may be a cause of concern. Portfolio flows are capricious and more susceptible to reversals in case of any global financial shock.

    The countercyclical nature of India’s CAD: A matter of concern

    • Dominance of external shocks: Research suggests that the country’s CAD rises when output falls rather than when demand rises, indicating the dominance of external shocks.
    • For instance: If oil prices rise, and as oil is an input in the production process, it raises the cost of production and leads to a fall in economic growth. In this case, CADs rise with falling growth due to both the inelasticity of oil import demand as well as its major share in India’s total imports.

    Remarks to be Noted

    • Remittances and services exports have provided a counter-balance to rising merchandise trade deficits.
    • India’s services exports grew at 23.5 per cent in 2021-22.
    • While capital flows are pro-cyclical and react negatively to contractionary monetary policy by the Fed, remittances have exhibited remarkable stability.

    Challenges and a Way ahead

    • The composition of financing is crucial. While FDI inflows were enough to finance the deficit in 2021-22, these inflows have been weak in the current fiscal year.
    • Over the medium term, policymakers need to arrest the negative spillovers from the slowdown in global trade on merchandise exports.
    • Further rate hikes by the US Fed may lead to capital outflows leading to additional exchange rate market pressures. This could be challenging in the current situation as a weaker currency, coupled with a sticky import basket will lead to imported inflation.
    • Policy measures thus must facilitate exports by focusing on structural reforms to improve trade competitiveness, alongside which the government must sign free trade agreements.

    CAD

    Conclusion

    • India is currently facing the twin-deficit problem of high fiscal and CADs. While aggressive fiscal consolidation may be undesirable in the face of rising fears about a global slowdown, a comfortable external environment can be maintained by ensuring stable financing, along with using exchange rates as a shock absorber to weather the adverse global economic situation.

    Mains Question

    Q. Explain the concept of Current account deficit? India’s CAD have both desirable and undesirable components. Discuss.

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  • e-Waste Management

    e-Waste Rules 2022

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: e-waste

    Mains level: e-waste, impact, recycling challenges and management

    e-waste

    Central Idea

    • The burgeoning problem of managing e-waste is a cross cutting and persisting challenge in an era of rapid urbanisation, digitalisation and population growth. In November 2022, the Ministry of Environment and Forests notified a new set of e-waste rules, which will come into force from April 1, 2023. These rules address some of the critical issues but are silent on others.

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    What is e-Waste?

    • e-waste refers to electronic waste, which includes any discarded electronic or electrical device, such as computers, mobile phones, televisions, and refrigerators.
    • These devices contain hazardous substances such as lead, mercury, cadmium, and polyvinyl chloride (PVC) that can pose significant environmental and health risks if not disposed of properly.

    e-Waste

    Key components of e-waste Rules in India

    • Extended Producer Responsibility (EPR): The first set of e-waste Rules was notified in 2011 and came into effect in 2012. An important component of the Rules (2011) was the introduction of EPR. Under EPR compliance, producers are responsible for the safe disposal of electronic and electric products once the consumer discards them.
    • Authorization and product stewardship: E-waste rules 2016, which were amended in 2018, were comprehensive and included provisions to promote authorisation and product stewardship. Other categories of stakeholders such Producer Responsibility Organisations (PRO) were also introduced in these rules.
    • A digitalized systems approach, introduced in the new rules (2022): Standardizing the e-waste value chain through a common digital portal may ensure transparency and is crucial to reduce the frequency of paper trading or false trail i.e., a practice of falsely revealing 100% collection on paper while collecting and/or weighing scrap to meet targets

    e-Waste

    e-waste recycling: Analysis

    • Two important stages of efficient e-waste recycling:
    • 1. Component recovery (adequate and efficient recoveries of rare earth metals in order to reduce dependence on virgin resources) and
    • 2. Residual disposal (safe disposal of the leftover residual during e-waste recycling).
    • Concern: The rules briefly touch upon the two aspects, but do not clearly state the requirement for ensuring the recovery tangent.
    • The new notification does away with PRO and dismantlers: All the responsibility of recycling vests on authorised recyclers; they will have to collect a quantity of waste, recycle them and generate digital certificates through the portal.
    • Concern: Fresh challenges might emerge as companies are no longer required to engage with PROs and dismantlers, who partially ensured double verification in terms of quantity and quality of recycling.
    • Lack of recognition to informal sector: The new rules for e-waste management in India do not recognize the crucial role played by the informal sector, which handles 95% of e-waste in the country. This lack of recognition may be due to the sector’s “illegality
    • Concern: This move could further push e-waste handling into the shadows and make it more difficult to monitor and regulate. This could lead to environmental pollution, health hazards for workers, and inefficient e-waste management.

    Impact on Health

    • Incineration and leaching: Open incineration and acid leeching often used by informal workers are directly impacting the environment and posing serious health risks, especially to child and maternal health, fertility, lungs, kidney and overall well-being.
    • Occupational health hazards: In India, many of these unskilled workers who come from vulnerable and marginalised are oblivious to the fact that that what they know as ‘black plastics’ have far reached occupational health hazards especially when incinerated to extract copper and other precious metals for their market value.
    • Exposures to children: This ‘tsunami of e-waste rolling out of the world’, as described in an international forum on chemical treaties, poses several health hazards for women in this sector as they are left exposed to residual toxics elements mostly in their own households and often the presence of children.
    • Constant contact with organic pollutants: According to a recent WHO report, a staggering 18 million children, some as young as five, often work alongside their families at e-waste dumpsites every year in low- and middle-income countries. Heavy metals such as lead, as well as persistent organic pollutants (POPs), like dioxins, and flame retardants (PBDEs) released into the environment, have also added to air, soil, and water pollution

    e-Waste

    Way ahead

    • In order to ensure maximum efficiency, the activities of the recyclers must be recorded in the system.
    • The authorities should periodically trace the quantity of e-waste that went for recycling vis-à-vis the recovery towards the end.
    • Recognising the potential of informal sector in e- waste handling.
    • For instance, ‘Karo Sambhav’, a Delhi-based PRO, has integrated informal aggregators in its collection mechanism. Through this initiative, e-waste is entered in a safe and structured system and the informal sector also has an advantage in terms of financial and legal security.
    • In order to ensure the efficient implementation of the law, stakeholders must have the right information and intent to safely dispose of e-waste.
    • There is need of strengthening reverse logistics, building capacity of stakeholders, improving existing infrastructure, enhancing product designing, rationalising input control and adopting green procurement practices.
    • Provide doorstep collection to consumers.

    Conclusion

    • e-waste recycling and management have become a major environmental challenge in the modern world, as the volume of e-waste generated continues to grow rapidly. Simultaneous efforts needed to increase awareness and improve infrastructure for effective e-waste management. Moreover, robust collection and recycling system and required to meet legislative requirements.

    Mains Question

    Q. What is e- waste? Discuss the set of e-waste rules in India and suggest what needs to be done for effective e- waste management?

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  • Government Budgets

    Invest In People For The Brighter Future

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Budget

    Mains level: Government capex, debt, investments and social welfare

    Invest

    Central Idea

    • The world is indeed looking up to the Indian economy as a bright star, as the finance minister noted in the Budget speech on February 1. In 2020, India accounted for 20.6% of the worldwide population of 15- to 29-year-olds. Which means that in the years ahead, one out of every five workers deployed globally could be an Indian. No doubt, the rest of the world foresees a fortune in India’s young population. But are our policymakers doing enough to realise the possibilities that are unfolding?

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    The key proposals in this year’s Union budget are the following

    • Increase in capital expenditures for infrastructure: There will be a considerable increase in capital expenditures, for the building of physical infrastructure, mainly in transport, energy and defence. The figures under this head are expected to be higher in 2023-24 compared to the corresponding level in 2022-23 (revised estimates).
    • Modest tax revenue: The growth of the tax revenues is going to be modest, the government is nevertheless committed to reducing the fiscal deficit to 5.9% of GDP. That could have been achieved only by reducing the spending on some other sectors
    • The axe has fallen on subsidies and social sector expenditures: Compared to its previous year, in 2023-24, the Union government’s expenditure on food subsidy will fall by ₹0.9 trillion (or 90,000 crore), on fertilizer subsidy by ₹0.5 trillion, and on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by ₹0.3 trillion.
    • Marginal increase unlikely to make impact: The marginal increases in the allocations on health, education, agriculture and the Angwandi scheme are unlikely to make an impact, after taking into account the effect of inflation.

    Public-private complementarities

    • Capital spending indicates country’s productive capability: A jump in capital spending by the government, as proposed in the Budget, is a much-needed step to reinvigorate the Indian economy. Investment as a proportion of income or GDP indicates the rate at which a country’s productive capabilities are growing.
    • High rates of investment; Fast rates of economic progress: In India, this proportion rose steadily during the mid-2000s and peaked at 42% in 2007, which was even better than China’s record at that point in time. High rates of investment translated into extremely fast rates of economic progress in the country, which lasted until the early 2010s.
    • Crowd in Private investments: If the proposed investments by the government come through, and they indeed crowd in private investments as the finance minister has predicted, that can set the stage for a revival of the Indian economy.

    Global financial crisis in 2007-08 was a turning point

    • China responded with high domestic investment: China responded to the crisis by increasing domestic investment, a large part of which coming from its public sector.
    • India restrained its expenditures: In India, the government restrained its expenditures, worrying about the rising fiscal deficits. As public expenditures nosedived, private investors lost confidence as well. Investment as a proportion of GDP was on a steady downward slide

    Invest

    Investing in people is an investment in the future

    • Expenditure on social sector: Public expenditures on the social sectors constitute an investment for the future more so for a country with a predominantly young population.
    • For instance: The income a destitute mother receives for work through MGNREGA may ensure that her children do not have to go to school with empty stomachs.
    • Underinvestment in education: Underinvestment in education and health will undercut India’s chances in a global economy that is increasingly dominated by knowledge. Millions of young people are denied access to affordable education and decent jobs, leading to frustration.
    • For instance: In 2022, only 2.6% of the nearly 1.9 million candidates who wrote the NEET managed to secure a seat for MBBS in a government college.
    • Government expenditure to boost to supply and demand: Government expenditure on health and education can provide a boost to both the supply and the demand fronts in a knowledge-driven economy, more new jobs as teachers and doctors, especially for women, and a greater supply of younger professionals and skilled workers.

    Importance of social sector spending for long-term growth and social welfare

    • Contrasting Capital Expenditures with Social Sector Spending: Unlike capital expenditures, which are generally considered productive, subsidies and social sector spending are often labeled as wasteful. It is commonly believed that cutting social sector spending will not harm economic growth; however, this perception is incorrect.
    • The Negative Impact of Reducing Social Sector Spending: Cutting social sector spending not only exacerbates existing social inequalities but also dampens the prospects for long-term growth.
    • For instance: In India, for example, only 9.8% of workers have access to regular jobs that provide some form of social security. Therefore, measures such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the free provision of food have been a lifeline for millions of poor Indians who have been affected by the COVID-19 pandemic and joblessness.

    Unwarranted fears about fiscal deficit

    • The Counterproductive Nature of Inflated Fears: Inflated fears about the fiscal deficit and government debt will only be counterproductive in a country possessing vast reserves of untapped human and other resources as India does.
    • India’s government debt is held largely by domestic financial institutions does not pose threat: Only a small portion of India’s public debt is owed to external agencies (amounting to 4.2% of GDP in 2022), which does not pose a threat. India’s public debt is held largely by domestic financial institutions, including public sector banks, insurance companies. This is a debt the government owes to the people of this country, whose savings the financial institutions have mobilised.
    • For example: Greece and the most recent example of Sri Lanka’s economic crisis was a result of external debt.
    • A Virtuous Cycle of Debt: Higher levels of development and incomes will lead to the creation of fresh savings, which can help pay off the debts. Borrowing to feed and educate all of its young citizens will provide asset-poor and socially disadvantaged households the opportunity to pick up qualifications required to enter the new job market.

    Invest

    Conclusion

    • For a generation of young Indians, this is, without a doubt, a ‘make or break moment’. without increased public spending on human capabilities, there is little hope for them to escape poverty, lack of skills, and discontent. However, if the government invests in food security, health, and education, India’s young people can thrive and become bright stars that illuminate the world.

    Mains question

    Q. Without increased public spending on human capabilities, there is little hope for young Indians to escape poverty and discontent. Discuss.

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  • Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

    Surya Nutan: A Stove of Green Energy Transition

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Surya Nutan solar cook-stove

    Mains level: India Energy week 2023

    Stove

    Central Idea

    • The formal launch of the Indian Oil Corporation’s patented solar cook-stove at the India Energy Week 2023 (February 6-8, 2023 in Bengaluru as part of the G-20 calendar of events) by the Prime Minister Narendra Modi must be looked at closely from the point of view of India’s national energy story. While Mr. Modi claimed the stove would soon reach three crore households within the next few years, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri called it a catalyst in accelerating adoption of low-carbon options along with biofuels, electric vehicles, and green hydrogen.

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    Salient features of Surya Nutan solar cook-stove

    • Indoor solar cooking: Surya Nutan is a Stationary, rechargeable, and always kitchen-connected indoor solar cooking.
    • Patented by Indian Oil: This is a patented product designed and developed by Indian Oil R&D Centre, Faridabad.
    • Maximum utilization of solar energy: It offers online cooking mode while charging through the Sun which maximizes the system efficiency and ensures high utilization of energy from Sun.
    • How it will work?: It collects energy from the sun, converts it into heat through a specially designed heating element, stores thermal energy in a scientifically proven thermal battery and reconverts the energy for use in indoor cooking. The energy captured not just covers day time cooking needs of a family of four but also the night meal.
    • Hybrid mode: It works on a Hybrid Mode (i.e. can work on both solar & auxiliary energy source simultaneously) which makes the Surya Nutan a reliable cooking solution for all weather conditions.
    • Minimises heat loss: Insulation design of Surya Nutan minimizes radiative and conductive heat losses.
    • Surya Nutan is available in three different models: The premium model (Breakfast +Lunch+Dinner) of Surya Nutan can cook all the meals for family of four.
    • What will be the cost: Initially, cost of the product is around Rs 12,000 for base model, and Rs. 23,000 for Top Model. However, the cost is expected to reduce substantially with economies of scale. At a price of Rs. 12,000-14,000/- for Top Model, assuming annual consumption of 6-8 LPG cylinders, this product can pay back the buyer in first 1-2 years itself.
    • Inbuilt Safety aspects: All the safety aspects required in any indoor appliances are inbuilt in Surya Nutan.
    • substitute for fossil fuels: The stove, which entails a one-time procurement cost and has zero maintenance, is being touted as a substitute for fossil fuels. It does not have a traditional battery that needs replacement. Also, the solar panel has a 25-year life.
    • Modular system: Surya Nutan is a modular system and can be designed in different sizes as per the requirement.

    India’s national energy story

    • In 1950s, the National Physical Laboratory (NPL) fabricated a solar cooker and state-led hydroelectric power but failed to address rural energy consumption.
    • Parallel efforts to improve the traditional stove proved unsuccessful, such as the Hyderabad Engineering Research Laboratories smokeless chulha.
    • 1980s government launched improved chulhas program to reduce fuelwood consumption and benefit women’s health/finances with 50% subsidy incentive. But the program failed due to construction, maintenance, and corruption issues. Women still rely on chulha despite hazards.
    • Cooking is 80% of rural Indian household’s energy use. 668m people in India use biomass for cooking/lighting, despite LPG scheme success. Fuel price inflation and subsidy withdrawal force women to use chulha with hazards.

    India Energy Week 2023

    • India’s G20 Presidency: India Energy Week 2023 is being organised during India’s G20 Presidency, under the tagline “Growth, Collaboration, Transition”, from 6-8 February 2023 in Bengaluru.
    • Opportunity for India: It provided a unique opportunity to showcase India as both an engine of global economic growth and a driver for global consumption, supported by a conducive and investment-friendly environment, and a skilled workforce.
    • Opportunity for strategic policy making and knowledge sharing: IEW 2023 was an unprecedented opportunity for regional, international leaders and CEOs to come together for strategic policy making and technical knowledge sharing.

    Why In India?

    • India is projected to witness the largest increase in energy demand of any country over the next two decades, as its economy continues to grow and create opportunities for its people to fulfil their potential.
    • India’s share in global energy consumption will rise from 7% to 14% by 2050
    • IEA predicts India will account for 25% of energy demand growth from 2020 to 2040
    • India’s oil and gas demand will triple by 2050
    • Gas consumption to grow threefold by 2030
    • Share of gas in energy mix to rise from 6.3% today to 15% by 2030

    Do you know “THE PANCHAMRIT” (The five-nectar-element commitments)?

    1. Indian Will take its non-fossil energy capacity to 500 GW by 2030.
    2. Indian will meet 50 % of its energy requirements from renewable energy by 2030.
    3. India will reduce the total projected carbon emissions by one billion tonnes from now till 2030.
    4. By 2030, India will reduce the carbon intensity of its economy by less than 45 percent.
    5. By the year 2070, India will achieve the target of net zero

    Conclusion

    • Surya Nutan has the potential to transform our energy security situation, as India currently imports 50% of its LPG requirements. It also reduces India’s CO2 emissions drastically and keeps our citizens insulated from the vagaries of the high international fossil fuel prices. India’s energy transition will play a pivotal role in global energy markets. India Energy Week comes at a critical time, with the challenges of energy security and environmental sustainability impacting long-term energy transition and paths towards decarbonisation.

    Mains Question

    Q. Indian Oil Corporation recently launched the Surya Nutan a solar cook-stove at the India Energy Week 2023. Discuss its salient features and potential benefits for energy security for rural households.

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