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Type: op-ed snap

  • Policy Wise: India’s Power Sector

    Assessment of discoms

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: National Open Access Registry (NOAR):

    Mains level: UDAY,RDSS

    Context

    • The Andhra Pradesh (A.P.) power distribution companies (DISCOMs) subscribed to the Late Payment Surcharge (LPS) scheme introduced by the Central government to reduce their liability to generators in a phased manner over the next 12 months.

    What are discoms?

    • Power distribution companies collect payments from consumers against their energy supplies (purchased from generators) to provide necessary cash flows to the generation and transmission sectors to operate.

    What is UDAY scheme?

    • Ujjwal DISCOM Assurance Yojana is the financial turnaround and revival package for electricity distribution companies of India initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.

    What is The Revamped Distribution Sector Scheme (RDSS)?

    • The revamped power distribution sector scheme aims to: Improve operational efficiencies, financial sustainability of discoms and power departments. Provide financial assistance to discoms. Modernise and strengthen distribution infrastructure. Improve reliability and quality of supply to the end consumers.

    Low performance of Discoms

    1) On the basis of AT&C losses

    • A key metric to measure the performance of discoms is AT&C losses.
    • The UDAY scheme had envisaged bringing down these losses to 15 per cent by 2019.
    • However, as per data on the UDAY dashboard, the AT&C losses currently stand at 21.7 per cent at the all-India level.
    • In the case of the low-income north and central-eastern states — Uttar Pradesh, Bihar, Jharkhand and Chhattisgarh — the losses are considerably higher.

    2) On the basis of cost and revenue per unit

    • On another metric — the gap between discoms costs and revenues — the difference, supposed to have been eliminated by now, stands at Rs 0.49 per unit in the absence of regular and commensurate tariff hikes.
    • For the high-income southern states of Tamil Nadu, Andhra Pradesh, and Telangana, this gap between costs and revenues is significantly higher.

    What are the factors responsible for inefficiencies?

    1) Electrification push without cost restructuring

    • The government’s push for ensuring electrification of all have contributed to greater inefficiency.
    •  To support higher levels of electrification, cost structures need to be reworked, and the distribution network would need to be augmented — in the absence of all this, losses are bound to rise.

    2) Economic fallout of the pandemic

    • With demand from industrial and commercial users falling, revenue from this stream, which is used to cross-subsidise other consumers, has declined, exacerbating the stress on discom finances.
    • A turnaround in the economy will provide some relief, but will not form the basis of a sustained improvement in finances.

    3) Lack of consumer data and metering

    •  Even six years after UDAY was launched, various levels in the distribution chain — the feeder, the distribution transformer (DT) and the consumer — have not been fully metered.
    • As a result, it is difficult to ascertain the level in the chain where losses are occurring.
    • Other than discoms in metros like Delhi and Mumbai, there is also limited data on which consumer is attached to which DT.
    • This lack of data makes it difficult to isolate and identify loss-making areas and take corrective action.

    4) No tariff hike

    • The continuing absence of political consensus at the state level to raise tariffs or to bring down AT&C losses signal a lack of resolve to tackle the issues plaguing the sector.

    Suggestions to improve the situation

    • Single discom: One of the solution centres around a national power distribution company.
    • Financial adjustment: Another option is to deduct discom dues, owed to both public and private power generating companies, from state balances with the RBI forcing states to take the necessary steps to fix discom finances.
    • National Open Access Registry (NOAR): NOAR is a centralized online platform through which the short-term open access to the inter-state transmission system is being managed in India.
    • Promote privatization: Since in an earlier policy statement the government had mentioned that privatization of discoms is to be promoted, it would make sense to consider this transitional support as a catalyst.
    • Provide transitional financial support: An alternate approach that could be considered by the Centre (in lieu of such assistance schemes) is providing only transitional financial support to all discoms, which are privatized under the private-public partnership mode.

    Conclusion

    • Continuously subsidising discoms for their AT&C losses (operational inefficiencies), and for not supplying power at commensurate tariffs to low-income households and agricultural customers (for political considerations) will become fiscally untenable.

    Mains question

    Q.There is growing demand for one nation one grid in this context Discuss the problems faced by various discoms. Suggest some robust solutions to address these problems sustainably.

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  • Disinvestment in India

    Nehru’s luminous legacy

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Public sector enterprise

    Mains level: Challenges of public sector undertakings

    Context

    • Seventy-five years ago, India’s first Prime Minister Pandit Jawaharlal Nehru made these remarks in his stirring speech on India attaining freedom at midnight: “The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?”

    Nehru’s vision for India

    • Nehru’s vision of India was anchored in a set of ideas such as democracy, secularism, inclusive economic growth, free press and non-alignment in international affairs and also in institutions that would lay the foundation for India’s future growth.

    Leadership of Nehru after independence

    • In 1947, Nehru, as Prime Minister, inherited an India that was politically shattered, socially divided and emotionally devastated. Yet, with restraint and self-confidence, he steered the country through those turbulent times and laid out the vision of a modern, progressive nation that quietly earned the respect of the global community.

    Temple of modern India

    • The Bhakra-Nangal Dam: The Bhakra-Nangal Dam project is a series of multi-purpose dams that were among the earliest river valley developments schemes undertaken by the government of India after independence. The project, though, had been conceived long before independence.
    • Bhilai Steel Plant: Bhilai, located in Chhattisgarh, was home to massive iron-ore deposits at Dalli Rajhara. Taking this into consideration, the government of India and the USSR entered into an agreement which was signed on March 2nd 1955, at New Delhi.
    • Bhabha Atomic Research Centre: The Atomic Energy Establishment, Trombay (AEET), was started by the government of India on January 3rd 1954 with the intention of consolidating all research and development activities for nuclear reactors and technology under the Atomic Energy Commission.
    • Indian Council of Agricultural Research (ICAR): to support indigenous scientists like Boshi Sen, who is credited with producing hybrid maize and irradiated wheat mutant.

    Relevance of these institutions

    • Economic Development:Economic development mainly depends upon industrial development. Heavy & basic industries like iron & steel, shipping, mining, etc. are required for supplying raw materials to small industries.
    • Regional Development:Private sector usually neglect backward area. But public sector organizations set up their units in economically backward areas. By this public sector removes regional imbalance & brings regional development.
    • Employment:Various public sectors operating in India needs lot of manpower & this provide employment to unlimited individuals according to their education, experience & abilities.
    • Service Motive: Public sector organizations are working with the only motive of providing public utility services to society at large irrespective of profit.
    • Sound Infrastructure:Rapid industrial growth in a country needs sound infrastructure. Infrastructural industries require huge capital for construction of Roads, Railways, Electricity & many such industries. Private sector is unable to have such huge capital & that also without any high return but public sector can easily afford to provide all infrastructural facilities.

    Some challenges they face today

    • Inefficient Management: It has been found that these enterprises are managed by public savants. They are not professionally qualified nor experts in the management of industrial enterprises.
    • Lack of Efficiency: They are not run on commercial principles. Their main motto is social welfare, not profit earning.
    • Lack of Innovations: Innovations are essential for economic development. Public enterprise lacks it due to monopoly or lack of competition. The private sector is always busy with innovating new techniques, new production methods, etc. For the purpose of cost reduction and profit maximization.

    Some suggestions to address the challenges

    • Sound business principles: The enterprise should be run on sound business principles. There should be focus on improving efficiency in all functional areas. Policies, systems and procedures should be modified with the aim of making the enterprise flexible, efficient and profitable.
    • Autonomy: Public enterprises should have considerable autonomy in their functioning. Authority should be delegated and they should have the freedom to take decisions. Autonomy would ensure that decisions are taken at the right time and growth opportunities utilized in the best possible manner.
    • Freedom from political interference: Many public enterprises are considered to be the kingdoms of politicians. They are run to suit the needs and requirements of the ruling party.

    Conclusion

    • Today, opinions are divided about the iconic leader. While Nehru always had his critiques even back in the day, a significant section of the masses despise the dynasty politics of the Congress that ensued after his passing in 1964.
    • However, his contributions to India’s freedom, and as a Prime Minister to his country are acknowledged by people both within and outside India. His shortcomings do not take away from the legacy he cemented as a propagator for freedom, and as the free nation’s first Prime Minister.

    Mains question

    Assess the Nehruvian legacy of public sector. Do you think they are still relevant today? While discussing challenges they face what suggestion will you give to improve their performance.

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  • Foreign Policy Watch: India – EU

    India-EU Relations

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Green strategic partnership

    Mains level: EU–India Cooperation Agreement, Strategic Partnership

    Context

    • While India celebrates its 75th year of Independence, it also celebrates 60 years of diplomatic relations with the European Union (EU).
    • A cooperation agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.

    Definition

    • Relations between the European Union and the Republic of India are currently defined by the 1994 EU–India Cooperation Agreement. The EU is a significant trade partner for India and the two sides have been attempting to negotiate a free trade deal since 2007.

    Common roadmap and shared vision

    • The road map highlights engagement across five domains: foreign policy and security cooperation; trade and economy; sustainable modernisation partnership; global governance; and people-to-people relations.

     

    Brief history

    • India-EU relations date to the early 1960s, with India being amongst the first countries to establish diplomatic relations with the European Economic Community.
    • At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’.
    • The two sides adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that provided for strengthening dialogue and consultation mechanisms in the political and economic spheres, enhancing trade and investment, and bringing peoples and cultures together.

    What is strategic partnership?

    • A ‘strategic partnership’, as the term suggests, involves a shared understanding between the two or more states involved on the nature of threats in the environment and the place of their collective power in helping mitigate the threats.

    Why they are important?

    • As the world’s two largest democracies, the EU and India share a commitment to protecting and promoting human rights, a rules-based global order, effective multilateralism, sustainable development and open trade.

    Significance

    [A] Political Partnership

    • The Joint Political Statement signed in 1993, opened the way for annual ministerial meetings and a broad political dialogue.
    • The Cooperation Agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.
    • A multi-tiered institutional architecture of cooperation has since been created, presided over by the India-EU Summit since 2000.
    • Today EU stands as a major reference for India’s legislative process in the field of Data security and privacy.

    [B] Economic Ties

    • Bilateral trade: The EU is India’s largest trading partner, while India is the EU’s 9th largest trading partner. It is the second-largest destination for Indian exports after the United States.
    • Investment: The EU’s share in foreign investment inflows to India has more than doubled from 8% to 18% in the last decade. This makes the EU an important foreign investor in India.
    • Preferential treatment: India is the benefactor of the unilateral preferential tariffs under the EU Generalised Scheme of Preferences (GSP).
    • Energy: Both sides have finalised civil nuclear cooperation agreement after 13 years of negotiations called as the European Atomic Energy Community (EURATOM). It involves collaboration in the civil nuclear energy sector.
    • Development cooperation: Over €150 million worth of projects by EU are currently ongoing in India. European Investment Bank (EIB) is providing loans for Lucknow, Bangalore, and Pune Metro Projects.

    [C] Defence & Security

    • EU and India have instituted several mechanisms for greater cooperation on pressing security challenges like counterterrorism, maritime security, and nuclear non-proliferation.
    • Information Fusion Centre – Indian Ocean Region in New Delhi (IFC-IOR) has recently been linked-up with the Maritime Security Centre – Horn of Africa (MSC-HOA) established by the EU Naval Force (NAVFOR).

    [D] Climate Change

    • EU and India also underline their highest political commitment to the effective implementation of the Paris Agreement and the UNFCCC despite US withdrawing from the same.
    • India-EU Clean Energy and Climate Partnership was agreed at the 2016 Summit – to promote access to and disseminate clean energy and climate friendly technologies and encourage R&D.
    • Energy cooperation is now ongoing on a broad range of energy issues, like smart grids, energy efficiency, offshore wind and solar infrastructure, and research and innovation.
    • EU and India also cooperate closely on the Clean Ganga initiative and deal with other water-related challenges in coordinated manner.

    [E] Research and Development

    • India-EU Science & Technology Steering Committee meets annually to review scientific cooperation.
    • Both have official mechanisms in fields such as Digital Communications, 5G technology, Biotechnology, artificial intelligence etc.
    • ISRO has a long-standing cooperation with the European Union, since 1970s. It has contributed towards the EU’s satellite navigation system Galileo.

    Future scope

    • Trade figures and Investments: Bilateral trade between the two surpassed $116 billion in 2021-22. The EU is India’s second largest trading partner after the U.S., and the second largest destination for Indian exports.
    • Job creation: There are 6,000 European companies in the country that directly and indirectly create 6.7 million jobs.
    • Green strategic partnership: between India and Denmark aims to address climate change, biodiversity loss and pollution, and the India-Nordic Summit focused on green technologies and industry transformation that are vital for sustainable and inclusive growth.
    • Energy security: Energy serves as an important aspect of the relationship between India and the EU. Given the impacts of climate change, this aspect has become extremely crucial today. Both entities have been pursuing cooperation for the joint development of clean energy.
    • Political cooperation: India and the EU may benefit from increasing cooperation in the resolution of issues such as terrorism and radicalization, cyber-security, coordinating on certain key and relevant aspects of foreign policy, and other humanitarian issues.
    • International support: It is crucial that Europe recognize India as a partner for peace that is committed to human rights, both regionally and internationally.

    Challenges before them

    • Deadlock over BTIA: The negotiations for a Broad-based Bilateral Trade and Investment Agreement (BTIA) were held between 2007 to 2013 but have remained dormant/suspended since then.
    • Export hurdles: Indian demands for ‘Data secure’ status (important for India’s IT sector) to ease norms on temporary movement of skilled workers, relaxation of Sanitary and Phytosanitary (SPS), etc. stands largely ignored.
    • Trade imbalance: This heavily leans towards China. India accounts for only 1.9% of EU total trade in goods in 2019, well behind China (13.8%).
    • Brexit altercations: In the longer term of balancing of global powers, a smaller Europe without the key military and economic force UK, is much weaker in the wake of an ambitious China and an increasingly protectionist US.
    • EU primarily remains a trade bloc: This has resulted in a lack of substantive agreements on matters such as regional security and connectivity.
    • Undue references to sovereign concerns: The European Parliament was critical of both the Indian government’s decision to scrap Jammu and Kashmir’s special status in 2019 and the Citizenship (Amendment) Act.
    • China’s influence: EU’s affinity lies with China. This is because of its high dependence on the Chinese market. It is a major partner in China’s Belt and Road Initiative (BRI).
    • Ukrainian war: EAM S. Jaishankar’s witty reply about EU’s oil import from Russia has not been welcomed across the EU. It still expects India to criticize Russia.

    EU’s interests in India

    • Reducing dependence on China: It is necessary for both sides as it is making them highly vulnerable to Chinese aggression.
    • Western lobby: EU acknowledges its supply chain’s vulnerability, the risk posed by overdependence on China, and the need to strengthen the global community of democracies.
    • Healthcare: The on-going pandemic has shown the need for cooperation in global health. India and the EU have called for a reform of the World Health Organisation (WHO).
    • Perception of India as a huge market: EU still largely perceives India as huge market rather than a partner.
    • Promotion of multilateralism: Both sides are facing issues related to US-China trade war and uncertainty of the US’ policies. They have common interest in avoiding a bipolarised world and developing a rules-based order.

    India’s stakes in EU

    • Global leadership vacuum: Retreat of the U.S. from global leadership has provided opportunities for EU- India cooperation and trilateral dialogues with countries in the Middle Fast, Central Asia, and Africa.
    • Chinese Aggression: China’s increasing presence in Eurasia and South Asia is creating similar security, political and economic concerns for Europe and India.
    • Fall of the conventional global order: Trade war, crumbling WTO and break down of TPP etc. has made EU understand the economic importance of India.
    • BREXIT: Brexit is pushing India to look for new ‘gateways’ to Europe, as its traditional partner leaves the union. A renewed trade and political cooperation are the need of the hour.
    • Conformity over Indo-Pacific: The Indo-Pacific is the main conduit for global trade and energy flows. Rule-based Indo-pacific is of everyone’s interest with EU no exception.

    Way forward

    • A close bilateral relation between India and the EU has far-reaching economic, political and strategic implications on the crisis-driven international order.
    • Both sides should realise this potential and must further the growth of the bilateral ties with a strong political will.
    • As highlighted by EU strategy on India 2018, India-EU should take their relations beyond “trade lens”, recognizing their important geopolitical, strategic convergences.
    • India can pursue EU countries to engage in Indo-pacific narrative, geo-economically if not from security prism.

    Mains question

    What do you understand by the term strategic partnership? India and EU are celebrating 60 years of diplomatic relations trace their journey with significance and challenges in their ties.

     

    B2BASICS

    About European Union (EU)

    • The EU is a political and economic union of 27 member states that are located primarily in Europe.
    • The union and EU citizenship were established when the Maastricht Treaty came into force in 1993.
    • The EU grew out of a desire to strengthen international economic and political co-operation on the European continent in the wake of World War II.
    • It has often been described as a sui generis political entity (without precedent or comparison) with the characteristics of either a federation or confederation.
    • The eurozone consists of all countries that use the euro as official currency. All EU members pledge to convert to the euro, but only 19 have done so as of 2022.

    Members of the EU

    • Through successive enlargements, the European Union has grown from the six founding states (Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands) to 27 members.
    • This entails a partial delegation of sovereignty to the institutions in return for representation within those institutions, a practice often referred to as “pooling of sovereignty“.
    • In the 2016 ‘Brexit’ referendum, the UK voted to leave the EU. The UK officially left the EU in 2020

     

    Mains question

    What do you understand by the term strategic partnership? India and EU are celebrating 60 years of diplomatic relations trace their journey with significance and challenges in their ties.

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

    Inclusive growth, social justice and income inequality

    op-ed snap | Economics | Mains Paper 2: Schemes For Vulnerable Sections

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Inclusive growth, Social justice

    Context

    • Key findings of the World Inequality Report 2022 related to India: National Income: In India, the top 10% and top 1% hold respectively 57% and 22% of total national income.

    What is inclusive growth?

    • Organization for Economic Co-operation and Development (OECD) defines Inclusive growth as the economic growth that is distributed fairly across society and creates opportunities for all. It refers to ‘broad-based’, ‘shared’, and ‘pro-poor growth’.

    What is social justice?

    • Social justice is the view that everyone deserves equal economic, political and social rights and opportunities. Social workers aim to open the doors of access and opportunity for everyone, particularly those in greatest need.

    Meaning of Inclusiveness

    • Inclusiveness is a concept that encompasses equity, equality of opportunity, and protection in market and employment transitions and is, therefore, an essential ingredient of any successful growth strategy.

    Need of inclusive growth

    • Complete development: India is the 7th largest by area and 2nd by population and 12th largest economy at market exchange rate. Yet, India is away from the development.
    • Income inequality: Low agriculture growth, low quality employment growth, low human development, rural-urban divides, gender and social inequalities, and regional disparities etc. are the problems for the nation.
    • Human development: Reducing poverty and inequality and increasing economic growth are the main aim of the country through inclusive growth.

    Need of social justice

    • Equality: We should shift from equality of outcomes to equality of opportunities.
    • Peace and Order: If the majority disregards smaller sections in the community, it drives them to rebellion.
    • Dignity: To ensure life to be meaningful and liveable with human dignity.
    • Mitigate Sufferings: It is a dynamic device to mitigate the sufferings of the poor, weak Dalits, tribal and deprived sections of the society.
    • Human Resources: It will help in the conservation of human resource by provision of health and education facilities.
    • Freedom to form political, economic or religious institutions: It will help to eradicate the challenges of caste system, untouchability and other discrimination in the society.

    Challenges before inclusive growth and social justice

    • Wage Gap: When it comes to wages in the workplace, there is a noticeable differentiation between men and women. According to the American Association of University Women (AAUW), in 2018, the gender pay gap from men and women for the same job was 82 percent. Stated simply, women make 82 percent of what men make doing the same work. This can be further broken down into a pay gap for minority men and women.
    • LGBTQ Oppression: When it comes to oppression and human rights, individuals of the Lesbian, Gay, Bisexual, Transsexual and Queer (LGBTQ) community face several forms of social injustice and oppression. For example, same sex marriages are outlawed in some states and countries. Additionally, transsexual students often face discrimination and bullying within school settings.
    • Education System: Globally, steps are being made to close the education gap between male and female students. However, there are still several areas around the world where girls may never set foot into a classroom at all. UNESCO notes that more than nine million girls never go to school, compared to only six million boys in areas of Africa.
    • Child Welfare: Social workers and human rights activists are working tirelessly to combat issues relating to children and their welfare. Despite their efforts, there are still several problems children face that are harmful to their health and mental wellbeing.
    • Forced Child Labour: Laws are in place around the world to ensure a safe work environment for children. These laws were drafted from historically harsh and dangerous working conditions for children. While many would like to believe that child labour is a thing of the past, it persists in some areas around the globe.
    • Child Abuse and Neglect: Thousands of children globally are being neglected. They’re also being physically, sexually and emotionally abused. The World Health Organization (WHO) reports that as many as a quarter of adults have been abused as children. This abuse has both social and economic impacts that include mental health problems.

    Government measures to address this challenge

    • SETU(Self Employment and Talent Utilization)
    • Skill India
    • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
    • Pradhan Mantri Jan Dhan Yojana
    • MUDRA (Micro Units Development and Refinance Agency)Bank

    Way forward

    • Equality of opportunity is the core of inclusive growth, and the inclusive growth emphasises to create employment and other development opportunities through rapid and sustained economic growth, and to promote social justice and the equality of sharing of growth results by reducing and eliminating inequality of opportunity.

    Mains question

    Explain the term inclusive growth in brief. How we can achieve social justice through inclusive growth?

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

    Reaping our demographic dividend

    op-ed snap | Indian Society | Mains Paper 1: Population & Associated Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India's demographic dividend

    Context

    • India’s biggest strength is its ‘demographic dividend’ and people need to fully leverage it to fast-track the country’s progress in various sectors

    Why in news

    • The 2022 edition of the World Population Prospects (WPP) of the United Nations has projected that India may surpass China as the world’s most populous country next year.
    • The report estimates that India will have a population of 1.66 billion in 2050, ahead of China’s 1.317 billion around that time.

    What is demographic dividend?

    • Demographic dividend, as defined by the United Nations Population Fund, is “the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population is larger than the non-working-age share of the population”.

    Current status for India

    • India entered the demographic dividend opportunity window in 2005-06 and will remain there till 2055-56.
    • This is the period when the working age ratio is equal to or more than 150% and the dependency ratio is equal to or lower than 66.7%, generally taken as the cut-off for the demographic dividend window.

    How India can leverage this dividend

    (1) Investment in right direction

    • Investments in human and physical infrastructure will need to be scaled up dramatically to promote entrepreneurship and create jobs.
    • Investment in education is crucial for ensuring that working-age people are prepared for the demands of the economy.
    • Increase spending on health
    • Increase investments in Research and Development

    (2) Absorption of labour into productive employment

    • Promote entrepreneurship and job creation
    • Service sector like tourism, logistics should be promoted
    • Skill development of the working-age population so that they can turn out to be productive for the country’s economy

    Challenges in reaping this

    • Drastic quality improvement: India’s challenge is to create conditions for faster growth of productive jobs outside of agriculture, especially in the organized manufacturing and in services.
    • Severe shortages: India currently faces a severe shortage of well trained, skilled workers. Large sections of the educated workforce have little or no job skills, making them largely Unemployable.
    • Dismal health sector: A closer look implies various factors such as poor health which although obvious, play a major role in the poor performance of working population.
    • Socio economic dimensions: The status of institutions in India regarding caste discrimination, gender inequalities, widening income gap between the rich and the poor, religious differences, inefficient and slow legal system- all contribute to the poor standard of living of the masses.

    Government steps

    • National Skill Development Corporation (NSDC): incorporated on 31st July, 2008, is a first-of-its-kind Public Private Partnership (PPP) in India set up to facilitate the development and upgrading of the skills of the growing Indian workforce through skill training programs.
    • National Skill Development Agency: Currently, skill development efforts are spread across approximately20 separate ministries, 35 State Governments and Union Territories and the private sector.
    • National Skill Certification and Money Reward Scheme: encouragement is given for skill development for youth by providing monetary rewards for successful completion of approved training programs.

    Way forward

    • Strategies exist to exploit the demographic window of opportunity that India has today, but they need to be adopted and implemented.
    • The dreams of huge income flow and resultant economic growth due to demographic dividend could be realized only when we inculcate the required skills in the work force to make it as competent as its counterparts in the developed world.

    Important data for mains

    • India’s working-age population has numerically outstripped its non-working age population.
    • India’s total fertility rate (TFR) has declined from 2.2 in 2015-16 to 2.0 in 2019-21, indicating the significant progress of population control measures, revealed the report of the fifth round of the National Family Health Survey (NFHS-5).
    • The TFR is the average number of children born to a woman in her lifetime.

    Mains question

    Q. Do you think the right has come that India should adopt moving away policy from population control towards reaping its demographic dividends? Critically examine.

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  • Police Reforms – SC directives, NPC, other committees reports

    Police reforms in India

    op-ed snap | Polity | Mains Paper 2: Civil Service

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Malimath Committee

    Mains level: Police reforms due in India

    Context

    • There is a widely shared view that the All India Services, which provided the ‘steel frame’ of governance in a democratic India, particularly on the police front, are failing to deliver.
    • This is because of the declining decision-making ability of its officers, their smugness arising from notions of total employment security, and the inadequacy of parameters used for evaluating their performance.
    • Anti-corruption bureau Was Constituted To Shield Corrupt Politicians, Officers From Lokayukta: Karnataka High Court

    Role of Police

    • Law enforcement: The basic role of the police is to function as a law enforcement agency and render impartial service to law, without any heed to wishes, indications or desires expressed by the government which either come in conflict with or do not conform to the provisions contained in the constitution or laws.
    • Service delivery: The police should have duly recognised service-oriented role in providing relief to people in distress situations. They should be trained and equipped to perform the service oriented functions.

    Issues with police institution

    • Public relationship: The police-public relations relationship, which is crucial to effective policing, is troubled by a severe lack of confidence.
    • Public perception towards police: Most people believe police to be abusive and also believe that police personnel misuse their power in order to bring order to society.
    • Police Accountability: Police priorities are constantly changed at the request of political leaders. This obstructs police officers’ ability to make professional decisions
    • Overburdened force and vacancies: A high percentage of vacancies in police departments exacerbates an already-existing problem of overworked officers. Given India’s low police strength per lakh population in comparison to international standards, each police officer is also responsible for a huge group of people.
    • Infrastructure: The weapons used by lower police forces are obsolete and cannot match modern weaponry used by anti-social elements.
    • Custodial Death: There are many cases on custodial death means Death by torture/pressure in police/judicial custody.
    • The dilemmas and challenges:

    (1) The Ubiquitous infrastructure (2) Explosion of police tasks (3) Dis-functionalism of rural police (4) Anomalous personnel system (5) The colossal ignorance of either side (6) The fragility of the equipment (7) The paradox of para militarism (8) Non-development to policing

    Steps taken till now

    • Establishment of a Central Police Committee:

    A Central Police Committee to look after the functions of consultancy and monitoring be

    Created because an expert agency is required by the Central Government and the State

    Security Commissions to advise them on matters relating to:

    (i) Police Organisation and police reforms of a general nature;

    (ii) Central grants and loans to the State Police Forces for their modernisation and Development; and

    (iii) Budgetary allotments to State Police Forces.

    • Enactment of a Model Police Act:

    The Police Act of 1861 replaced by a new Police Act, which not only changes the

    System of superintendence and control over the police but also enlarges the role of the

    Police to make it function as an agency which promotes the rule of law in the country and

    Renders impartial service to the community.

    • The Prime Minister’s call for making the police a SMART force: standing for a force which is:
    1. Strict and Sensitive,
    2. Modern and Mobile,
    3. Alert and Accountable,
    4. Reliable and Responsive,
    5. Tech-savvy and trained.
    Malimath committee:

    • Government had set up (November, 2000) a Committee under the Chairmanship
    • of Justice V.S. Malimath , a former Chief Justice of the Karnataka and Kerala High
    • Courts to consider and recommend measures for revamping the Criminal Justice System.

    Key recommendations :

    • Strengthening of training infrastructure, forensic
    • Science laboratory and Finger Print Bureau,
    • Enactment of the new Police Act,
    • Setting up of Central Law Enforcement agency to take care of federal crimes
    • Separation of the investigation wing from the law and order wing in the police stations,
    • Improvement in the investigation by creating more posts.

    Some suggestions for better policing:

    • Screen for Implicit Bias and Aggression: State legislatures should pass legislation that requires current and prospective police officers to undergo mandatory implicit bias testing
    • Focus on Collaborative Approaches to Policing: Police departments should rely upon collaborative approaches that respect the dignity of individuals within the community; focus on problem-solving; and are generally more community centered and build community trust.
    • Encourage Consistent Monitoring and Screening: Police departments should create early warning systems for detecting patterns of behaviour, such as complaints filed against officers or personal hardships like divorce, which indicate potential vulnerabilities for the officer and the department.
    • Use Video Recording to Promote Accountability: Legislatures should require that police interrogations be electronically recorded “during the time in which a reasonable person in the subject’s position would consider themselves to be in custody and a law enforcement officer’s questioning is likely to elicit incriminating responses.
    • Increase the use of special prosecutors in police misconduct investigations
    • Enhancing the collection of data on fatalities involving police

    Conclusion

    • India is the target of an ever-growing list of terrorist groups, insurgent forces and criminal networks.
    • Even petty criminals are now in possession of hi-tech gadgets that allow them better access and reduce their chances of being caught.
    • In such an environment, the need for skill and competency up-gradation of the police force is a sine qua non.

    Q. What is smart policing? Considering the rise in custodial deaths give some suggestions to improve criminal justice delivery system in India.

     

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  • India Switzerland Relations

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: UNSC

    Mains level: Paper 2- India-Switzerland relations

    Context

    Two countries will commemorate next year the 75th anniversary of the signing in New Delhi of the 1948 Treaty of Friendship.

    Cooperation between two countries in various area

    • Switzerland and Indian partners are collaborating on digital transformation, sustainability, health, life sciences, medtech, infrastructure, cleantech, fintech, blockchain, AI and robotics.
    • Innovation and investment continue to be the primary drivers of our bilateral relations.
    • With over 330 Swiss companies, Switzerland is the 12th largest investor in India.
    • About 100 Swiss companies manufacture locally and support the Make in India initiative.
    • Trade talks between Switzerland (European Free Trade Association EFTA) and India are high on the priority list.
    • Digitalisation is emerging as a relatively new area of engagement with enormous potential for Switzerland and India.
    • Switzerland plays a leading role in researching new technologies and is home to many innovative and world-leading technology companies.
    • As one of the most innovative countries of the world, Switzerland seeks to engage with India, the leader of the Industry 4.0 revolution, in areas ranging from digital governance to digital self-determination.

    Switzerland in UNSC as non-permanent member

    • Switzerland was elected to the United Nations Security Council as a non-permanent member for the first time this year in June.
    • Convergence in priorities at Security Council: There are convergences in Swiss and Indian priorities at the UN Security Council.
    • Switzerland, like India, is committed to a robust and effective multilateral system.
    • In the Security Council, Switzerland will do everything possible to ensure sustainable peace.
    • Many years ago, from 1971 to 1976, Switzerland represented India’s interests in Pakistan and vice versa.
    • In the Security Council, Switzerland will focus on the protection of civilians and on international humanitarian law.
    • Impact of climate change on security: Switzerland will also address climate change and its impact on security.
    • Reforms of Security Council: Switzerland desires effective UN institutions.
    • India has been advocating for a reform of the Security Council.
    • Switzerland’s fourth priority in 2023 and 2024 will be to contribute to improving the United Nations Security Council’s effectiveness towards greater transparency and accountability.

    Conclusion

    Two countries can together contribute to global good. This engagement is a result of not only our shared priorities, but also our shared democratic values and foreign policy independence.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Disruptions in Parliament

    op-ed snap | Polity | Mains Paper 2: Parliament & State Legislatures

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 2- Disruptions in legislatures

    Context

    The inability of Parliament to transact any business and the lack of serious deliberation must be a matter of grave concern for all.

    Purpose of deliberative democracy

    • In a deliberative democracy, Parliament works as a special purpose vehicle for the legislative scrutiny of bills, grievance redressal and debate on policies and related governance issues.
    • Its failure to transact business is a sad commentary on three aspects — Members of Parliament, the presiding officers as well as the rules and regulations that define the functioning of both Houses.

    How disruption affects Member of Parliaments

    • For any parliamentarian, it is extremely disappointing to be unable to speak in the House for which he or she has — in most cases —given notice and come prepared.
    • And when this happens too often, their enthusiasm decreases.
    • Impact on quality of debate: In such a situation, members are often tempted to make a popular intervention than a substantive one.
    • This certainly impacts the quality of debates negatively.

    Challenges for presiding officer

    • For the presiding officers too, preventing disruptions is a serious challenge.
    • Perhaps presiding officers can emulate the courts of law.
    • Use of in-camera proceedings: Like in courts, the presiding officers  need to consider conducting in-camera proceedings in their chambers to insulate at least the Zero Hour and Question Hour from getting washed out.
    • While the House remains force-adjourned, presiding officers can order in-camera hearing of questions of MPs and replies of ministers.
    • Zero Hour submissions could also be dealt with similarly.
    • Some tweaking of existing rules and regulations may facilitate this.

    Issues with media coverage of Parliamentary proceedings

    • In any polity, systems work effectively when wrongdoers are punished and rule-abiding people are rewarded.
    •  What happens currently is exactly the opposite, especially in the context of coverage of parliamentary proceedings in mainstream media.
    •  The space allocated for parliamentary proceedings in both, print and electronic media is shrinking fast.
    • Rarely does one finds adequate coverage of Question Hour or Zero Hour compared to the past.
    • Debates on bills are also subject to brief and sketchy reporting.
    • Although disruptions have become common, they continue to get reported without fail and disruptors often bask in the media limelight.
    • As against this, those who make a reasonably good speech — well argued and supported by statistics, examples or case studies — rarely get adequate attention.
    • This too hampers the interest of parliamentarians.
    • It is high time we rise above the temptations of this tendency and think seriously about systemic reforms.

    Conclusion

    As the Parliament of independent India enters the eighth decade of its history and prepares to enter a new, more well-equipped and modern Parliament House, it is the right time to think about how we can add value to our deliberative democracy.

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  • How to stop illegal mining of minor minerals

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Paper 3- Use of technology to curb illegal mining

    Context

    While laws and monitoring have been made stringent for the mining of major minerals consequent to the unearthing of several related scams across the country, the fact is that rampant and illegal mining of minor minerals continues unabated.

    What are minor minerals?

    •  “Minor minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral;
    • Regulation exclusively by States: Unlike major minerals, the regulatory and administrative powers to frame rules, prescribe rates of royalty, mineral concessions, enforcement, etc. are entrusted exclusively to the State governments.
    • The Environment Impact Assessment (EIA) Notifications of 1994 and 2006 made environmental clearance compulsory for mining in areas more than or equal to five hectares.
    • The EIA was amended in 2016 which made environmental clearance mandatory for mining in areas less than five hectares, including minor minerals.
    • The amendment also provided for the setting up of a District Environment Impact Assessment Authority (EIAA) and a District Expert Appraisal Committee (EAC).

    The problem of illegal mining of minor minerals

    • The United Nations Environment Programme, in 2019, ranked India and China as the top two countries where illegal sand mining has led to sweeping environmental degradation.
    • No comprehensive assessment: Despite this, there is no comprehensive assessment available to evaluate the scale of sand mining in India.
    • Damage to the environment: Regional studies such as those by the Centre for Science and Environment of the Yamuna riverbed in Uttar Pradesh have observed that increasing demand for soil has severely affected soil formation and the soil holding ability of the land, leading to a loss in marine life, an increase in flood frequency, droughts, and also degradation of water quality.
    • Loss to exchequer: It is not just damage to the environment. Illegal mining causes copious losses to the state exchequer.
    • A State-wide review of the reasons behind non-compliance suggests a malfunction of governance due to weak institutions, a scarcity of state resources to ensure enforcement, poorly drafted regulatory provisions, inadequate monitoring and evaluation mechanisms, and excessive litigation that dampens state administrative capacity.

    Way forward: Use of technology

    • Use of satellite imagery: Satellite imagery can be used to monitor the volume of extraction and also check the mining process.
    • Recently, the NGT directed some States to use satellite imagery to monitor the volume of sand extraction and transportation from the riverbeds.
    • Drones, IoT and blockchain: Additionally, drones, the internet of things (IoT) and blockchain technology can be leveraged to monitor mechanisms by using Global Positioning System, radar and Radio Frequency (RF) Locator.
    • State governments such as Gujarat and judicial directions such as the High Court of Madras have employed some of these technologies to check illegal sand mining.

    Conclusion

    Protecting minor minerals requires investment in production and consumption measurement and also monitoring and planning tools. To this end, technology has to be used to provide a sustainable solution.

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  • NPA Crisis

    India’s banking sector shows progress

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Credit growth in India

    Mains level: Paper 3- India's banking sector

    Context

    The RBI’s latest Financial Stability Report (FSR) has given the banking system a reasonably clean bill of health. It’s a significant achievement, considering the stress of the previous decade, the shock of the pandemic and the associated slowdown of the economy.

    Two indicators of banking system’s progress

    • 1] Reduced NPAs: Successive waves of recapitalisation have given banks enough resources to write off most of their bad loans.
    • As a result, they have been able to bring down their gross NPAs (non-performing loans) from 11 per cent of total advances in 2017-18 to 5.9 per cent in 2021-22.
    • Even after these large write-offs, most banks retain comfortable levels of capital.
    • 2] Credit growth doubled: During the decade when banks were under stress, non-food bank credit growth had been declining, reaching just 6 per cent in 2020, its lowest point in six decades.
    • Since then, credit growth has nearly doubled.

    Concerns

    • Role of credit in supporting GDP growth: The problem is that very little of this credit is going to large-scale industry or for financing investment.
    • Reluctance of banks to provide credit to industry: Over the last decade, banks have increasingly shifted away from providing credit to industry, favouring instead lending to consumers.
    • This trend is continuing — in the year ending March 2022, consumer loans grew at 13 per cent, whereas loans to industry grew at just 8 per cent.
    • Banks favoring MSMEs in industry loans: Bulk of the industry loans has been extended to the smaller firms (MSMEs), which benefitted from the credit guarantee scheme offered by the government in the wake of the pandemic.
    • Reduced lending to private sector investment: A related problem is that there has been little lending for private sector investment.
    • Over the last one year, bank lending to infrastructure has grown by 9 per cent, up from 3 per cent in 2020, but this was fuelled mainly by public sector capital expenditure.

    Why is there so little lending for investment by large firms?

    • Demand side reason: On the demand side, private sector investment has been sluggish for nearly a decade.
    • The boom-and-bust of the mid-2000s had saddled firms with excess capacity, giving them little reason to expand their production facilities.
    • In addition, the global financial crisis had shown the dangers of ambitious expansion supported by excessive borrowing, leading firms to conclude that it would be prudent to scale back their plans and instead focus on reducing their debts.
    • Supply side reason: On the supply side, banks have learned similar lessons.
    • During the period 2004-2009, rapid GDP growth in the Indian economy was fuelled by an unprecedented lending boom.
    •  Subsequently, many of those loans turned bad, leading to high levels of NPAs on bank balance sheets.
    •  As a result of these financial problems, banks for a decade were unable to extend much in the way of credit.

    Challenges

    • On the positive side, firms seem to have finally used up much of their spare capacity.
    • Fundamental problems not resolved: But on the negative side, the fundamental problems that led to the difficulties of the past decade still have not been resolved.
    • No framework for risk reduction: There is still no framework that will reduce the risk of private sector investment in infrastructure, certainly not in the critical and highly troubled power sector.
    • Nor is there any reassurance for the banks that if problems do develop, they can be resolved expeditiously, since the Insolvency and Bankruptcy Code has been plagued by delays and other problems.

    Way forward

    • We need deep structural reforms — to the infrastructure framework, the resolution process, and indeed, in the risk management processes at the banks themselves.
    • In the event that these reforms do not materialise, there may continue to be shortfalls in credit, investment, and ultimately in economic recovery and growth.

    Conclusion

    A healthy balance sheet of the banking sector is a necessary but not a sufficient condition for economic growth. The important question is whether banks and firms will once again be willing to take on the risk of investment in industry and infrastructure.

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