Note4Students
From UPSC perspective, the following things are important :
Prelims level: Climate financing mechanism
Mains level: Climate change and current disparity in climate financing
What’s the news?
- In recent years, climate justice activists have been advocating for economically developed countries to increase their investments in climate adaptation and mitigation, including supporting other nations in dealing with the impacts of climate change.
Central idea
- Countries in Sub-Saharan Africa, Latin America, and South Asia, despite contributing the least to global warming, are disproportionately affected by climate disasters and burdened with debt distress. In contrast, North American and European countries, which have historically been the major contributors to greenhouse gas emissions, also hold significant roles as creditors in the ongoing debt crisis.
Carbon Emissions per Capita in Various Regions
- Global Average Emissions: The global average emissions per capita have consistently remained above 4.7 tonnes per capita since 2010. This value is twice the baseline target needed to limit global warming to 1.5 °C.
- Africa and India: Countries in Africa and India have consistently emitted carbon dioxide per capita below the global average. Despite being major contributors to the global population, their carbon emissions per capita have been comparatively lower.
- China: China crossed the global average carbon emissions per capita in 2004 and has steadily increased since then. By 2021, China’s per capita emissions would reach 8 tonnes, placing it on par with Europe and Oceania.
- UAE and the U.S.: Despite observing an overall decline in emissions, the UAE and the U.S. still had the highest carbon emissions per capita as of 2021. The UAE’s per capita emissions were recorded at 21.8 tonnes, while the U.S. stood at 14.9 tonnes
Investment in Climate-related Activities by World Bank Regions
- Sub-Saharan Africa: This region had the highest investment fraction in climate finance, allocating 1.3% of its GDP towards climate-related activities in both 2019 and 2020. This indicates a significant commitment to addressing climate challenges.
- East Asia and the Pacific: Following closely behind, this region allocated 1% of its GDP to climate-related initiatives, showcasing a considerable effort in climate finance.
- South Asia: The region dedicated 0.9% of its GDP to climate-related activities in both years, reflecting a notable commitment to addressing climate change impacts.
- U.S. and Canada: In contrast, the United States and Canada contributed the least among the World Bank regions, allocating only 0.3% of their GDP to climate-related projects in 2019 and 2020.
International Multilateral Climate Funds Disbursement
- Disbursement Disparity: Since 2003, a total of $3.3 billion has been approved to be disbursed to South Asia through these multilateral climate funds. However, only $1.3 billion was actually disbursed. This indicates a significant disparity between approved funds and actual disbursements.
- Global South Funding: A large fraction of the funds for climate mitigation and adaptation in the Global South come from international multilateral climate funds. These funds are primarily sourced from economically developed countries.
- Suboptimal Disbursement: On average, most regions received only 40% of the approved funding intended for their climate projects. This points to challenges with efficient fund allocation and disbursement.
Climate Vulnerability Index
- The Climate Vulnerability Index is calculated annually by the Notre Dame Global Adaptation Initiative and combines a country’s exposure, sensitivity, and capacity to adapt to climate change. The Risk of Debt Distress is based on the International Monetary Fund’s Debt Sustainability Framework reports.
Climate Vulnerability Index by country and the Risk of Debt Distress by region
- Climate Vulnerability Index: Most notably, countries in Sub-Saharan Africa emerge as the most vulnerable to climate change, facing higher risks due to their exposure, sensitivity, and limited capacity to adapt to climate impacts.
- Risk of Debt Distress: Sub-Saharan Africa stands out as the region with several countries at high risk of or facing debt distress, further exacerbating their vulnerability to climate change.
- Correlation: Most of the countries experiencing high climate vulnerability are also at risk of debt distress, highlighting the interconnectedness of climate change impacts and financial challenges.
- High-Income Country Exclusion: Several high-income countries were excluded from the analysis due to limited data. Therefore, the focus of the chart is primarily on countries in the Global South.
Expressed concern from the above observations
- Disproportionate Vulnerability: The observations highlight the inequity in climate impacts, where regions that have historically contributed less to greenhouse gas emissions are disproportionately bearing the brunt of climate disasters.
- Financial Vulnerability: Climate-related impacts can exacerbate existing economic vulnerabilities, leading to a higher risk of debt distress, which, in turn, hampers their capacity to address climate change and sustainable development needs effectively.
- Climate Finance Disparity: The disparity between approved funds and actual disbursements through international multilateral climate funds is worrying. This raises questions about the efficiency of fund allocation and disbursement.
- Limited High-Income Country Data: The exclusion of several high-income countries from the analysis due to limited data poses concerns about the comprehensive understanding of global climate vulnerabilities.
- Interconnected Challenges: The interconnection between climate vulnerability, debt distress, and development challenges implies that addressing one issue without considering the others may not yield sustainable solutions.
Way forward
- Increased Climate Finance:
- Economically developed countries must urgently increase their financial contributions to support climate adaptation and mitigation efforts in vulnerable regions.
- Meeting the target of $100 billion annually for climate finance is crucial to aid vulnerable countries in building resilience and reducing greenhouse gas emissions.
- Debt Relief for Vulnerable Countries:
- High-risk and debt-distressed countries should be offered debt relief measures specifically tied to climate action.
- Debt-for-climate swaps and innovative financial instruments can help these nations allocate more resources to climate resilience and sustainable development.
- Technology Transfer and Capacity Building:
- Accelerate the transfer of clean and sustainable technologies to vulnerable countries, providing them with the tools and knowledge to adapt to climate change and reduce emissions effectively.
- Capacity building efforts should be prioritized to enhance local communities’ abilities to implement climate-friendly solutions.
- Adaptation and Resilience Investment:
- Urgently invest in climate adaptation projects that enhance the resilience of vulnerable communities and ecosystems.
- Prioritize infrastructure improvements, nature-based solutions, and disaster risk reduction measures to protect lives and livelihoods from climate-related impacts.
- Ambitious Emission Reduction Targets:
- Pursue ambitious emission reduction targets at the national and global levels.
- All countries, especially economically developed ones, should take the lead in transitioning to clean energy sources and decarbonizing their economies to limit global warming
Conclusion
- The current disparity in climate financing between economically developed countries and those in Sub-Saharan Africa, Latin America, and South Asia raises concerns about climate justice and the urgent need to bridge the gap. Only through collective and equitable action can we build a sustainable and resilient future for all.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MSP and related facts
Mains level: Demand for a legal guarantee of MSP, challenges in existing structure and way forward
What’s the news?
- For years, farmers have been demanding a legal guarantee of the minimum support price (MSP), calculated according to the Swaminathan Commission formula.
Central idea
- The significance of MSP lies in its role in maintaining agricultural viability and preventing farmers from falling into debt and bankruptcy. However, the current MSP system falls short of its objectives, leaving most farmers without much-needed support. This op-ed emphasizes the need for a farmer-centric agricultural policy and a radical shift in approach to secure MSP with a legal guarantee.
Minimum support price (MSP)
- MSP is the price at which the government procures crops directly from farmers. It is calculated to be at least one-and-a-half times the cost of production incurred by the farmers.
- The MSP serves as a minimum guaranteed price for specific crops that the government considers remunerative and deserving of support for farmers.
Agriculture’s Role in the National Economy
- Employment and Livelihood: Agriculture is the largest source of employment and livelihood for about 50 percent of the country’s population, especially in rural areas. It provides direct and indirect employment for millions of people.
- Contribution to GDP: Agriculture contributes around 17–18 percent to India’s Gross Domestic Product (GDP). Although the share of agriculture in the overall GDP has been declining over the years due to the growth of other sectors, it remains a crucial component of the economy.
- Food Security: The agricultural sector plays a critical role in ensuring food security for the nation. By producing a variety of food crops like rice, wheat, pulses, fruits, and vegetables, it caters to the dietary needs of the population and helps manage food inflation.
- Source of Raw Materials: Agriculture is the primary source of raw materials for various industries, including textiles, sugar, jute, and vegetable oil. It provides the necessary inputs for industrial production, contributing to the overall industrial growth of the country.
- Export Earnings: Agricultural exports, such as rice, spices, tea, coffee, and cotton, generate foreign exchange earnings for the country. This helps improve the balance of trade and supports economic growth.
- Rural Development: The growth of agriculture has a significant impact on rural development. It improves rural infrastructure, raises the standard of living, and creates opportunities for the development of allied industries and services in rural areas.
- Poverty Alleviation: Agriculture remains an essential tool in poverty alleviation as it provides income and employment opportunities to the rural population, which is often more susceptible to poverty.
Important role of MSP
- Ensuring Income Security: MSP provides a minimum guaranteed price for farmers’ produce. It protects them from price fluctuations and market risks, ensuring a stable income for their efforts and investment in farming.
- Preventing Distress Sales: With MSP in place, farmers are less likely to resort to distress sales of their crops during times of market downturns.
- Encouraging Crop Diversification: The MSP system covers a range of crops, including cereals, pulses, oil seeds, and more. By providing a remunerative price for diverse crops, it encourages farmers to adopt crop diversification, contributing to agricultural sustainability and food security.
- Government Procurement: MSP sets a benchmark for government procurement of crops. The government procures crops at MSP through various agencies like FCI and state agencies, thereby supporting farmers and maintaining buffer stocks for food distribution.
- Addressing Regional Imbalances: MSP implementation considers regional variations in production costs and helps bridge the income gap between farmers in different regions. It addresses regional imbalances and ensures equitable growth in the agriculture sector.
Inadequacies of the MSP
- Limited Coverage: The current MSP system leaves the majority of farmers without much-needed support. Only around 6% of farmers in the country benefit from MSP, while the remaining face challenges in accessing remunerative prices for their produce.
- Debt and Bankruptcy: Despite MSP being introduced as a safety net, farmers still struggle with debt and bankruptcy. The average debt burden on a farmer’s family is over Rs 1 lakh, despite the subsidies provided by the government.
- Natural Disasters and Market Risks: Farmers remain vulnerable to natural disasters and market forces, making their income uncertain and apprehensive. Climate change adds complexity to farming, and farmers cannot be left at the mercy of such unpredictable factors.
- Insufficient Market Regulation: Middlemen exploit farmers, leading to a significant difference between the price at which farmers sell their produce and the price at which consumers buy the same produce. This lack of market regulation affects farmers’ income adversely.
- Inadequate MSP Calculation: The MSP calculation method may not fully reflect the input costs, market trends, and other economic factors, leading to an ineffective MSP for farmers.
- Rising Debt: The outstanding loan on farmers has increased significantly over the years, indicating the insufficiency of MSP and minimal increases in support prices.
Swaminathan Commission Recommendations
- Calculation of MSP: The Swaminathan Commission recommended that MSP be calculated by adding 50 percent profit to the C2 cost (comprehensive cost including imputed value of family labor) for crops. This method takes into account various input costs incurred by farmers, including labor, seeds, fertilizers, and other expenses.
- Expanded Coverage: The Commission suggested expanding the scope of MSP to cover a wide range of agricultural produce, including crops like ginger, garlic, turmeric, chili, and all agricultural produce and horticulture.
The Call for a Legal Guarantee of MSP
- Addressing Rising Debts: The outstanding loan to farmers has significantly increased over the years, reaching Rs 23.44 lakh crore in 2021–22. Legalizing MSP would offer a sustainable solution, reducing farmers’ dependence on debt.
- Fulfilling Promises: A legal guarantee makes MSP a binding obligation, ensuring farmers receive the promised prices for their crops and avoiding selling at lower rates.
- Empowering Farmers: Legalized MSP enhances farmers’ bargaining power and enables informed decisions in cropping and marketing.
- Supporting Sustainable Agriculture: MSP legislation promotes sustainable agriculture, diversification, and resilience against climate change.
- Promoting Farmer-Centric Policy: A Legal Guarantee of MSP emphasizes a farmer-centric approach, safeguarding their rights, interests, and livelihoods.
Way forward
- Reforming Agribusiness and Ensuring Fair Compensation:
- Promote farmer producer organizations (FPO’s) and cooperatives.
- Facilitate direct market access to reduce dependence on intermediaries.
- Adhering to the Swaminathan Commission’s Guidelines:
- Follow the MSP calculation as per the Swaminathan Commission’s recommendations.
- Consider comprehensive costs, including labor and input expenses.
- Promoting Sustainable Agriculture Practices:
- Encourage the adoption of sustainable farming practices and climate-resilient crop varieties.
- Invest in agricultural research and extension services for modern technologies.
- Ensuring Access to Credit and Insurance:
- Strengthen credit facilities for farmers.
- Provide insurance coverage to manage risks effectively.
- Investing in Rural Infrastructure:
- Improve irrigation facilities, storage, and transportation networks.
- Reduce post-harvest losses and improve market access.
- Promoting Agro-tourism and Direct Marketing:
- Encourage agro-tourism for additional income.
- Establish farmers’ markets and e-commerce platforms for direct marketing.
Conclusion
- The demand for a legal guarantee of MSP is a just and crucial step towards safeguarding the livelihoods of farmers. Providing farmers with a dignified life is not just a moral obligation but an economic imperative, as the growth of the agricultural sector directly impacts the nation’s prosperity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India’s clean-cooking strategy and government schemes
Mains level: India’s clean-cooking strategy, Growth of LPG sector, challenges and alternatives
What’s the news?
- For the first time, LPG consumption in Indian households saw an absolute reduction in 2023 (minus 0.5% versus FY22) after years of steady growth.
Central idea
- Over the past 15 years, the Government of India has endeavored to replicate the urban success of LPG adoption in rural and poorer households. The Grameen Vitrak Yojana and Pradhan Mantri Ujjwala Yojana (PMUY) have significantly expanded the rural distributor base from 18% to 60%. However, the recent decline in LPG consumption raised questions about its sustainability and highlighted the need for a transition.
Significant growth in the LPG sector
- Share Increase: The share of Indian households using LPG as their primary cooking fuel rose from 33% in 2011 to 71% in 2020, according to the India Residential Energy Consumption Survey (IRES) conducted by the Council on Energy, Environment, and Water (CEEW).
- Pradhan Mantri Ujjwala Yojana (PMUY): The successful implementation of PMUY, launched in May 2016, played a pivotal role in promoting LPG adoption. Over 8 crore (80 million) free LPG connections were provided to women from Below Poverty Line (BPL) households by March 2021.
- Reduction of Health and Environmental Hazards: The increased adoption of LPG has led to a reduction in health hazards caused by traditional cooking fuels like firewood, crop residues, and dung cakes. Indoor air pollution, particularly affecting women who spent long hours cooking in smoky kitchens, has decreased.
- Government Initiatives: Government policies and initiatives aimed at promoting clean cooking solutions have contributed to the growing awareness among Indian households about the benefits of LPG as a clean fuel for cooking
Challenges faced by the LPG sector
- Financial Barriers: The withdrawal of LPG subsidies for all consumers during the COVID-19 pandemic in 2020 created financial barriers for many households, affecting their ability to afford LPG refills.
- Underutilization of Subsidies: Despite providing three free cylinders to all PMUY consumers in FY21 as part of the Pradhan Mantri Garib Kalyan Yojana, only 14.1 crore out of the possible 24 crore free cylinders were consumed, indicating challenges in reaching the intended beneficiaries and ensuring full utilization of the provided benefits.
- Distribution and Logistics: Despite significant efforts, home delivery and distribution channel issues persisted, particularly affecting non-PMUY consumers, leading to slow refill rates and hindering the seamless supply of LPG.
- Price Volatility: Indian households have experienced a near-doubling in LPG prices since May 2020 in nominal terms due to volatile international prices, especially since the Russian war against Ukraine. This price volatility affects the affordability and accessibility of LPG for consumers.
- Import Dependency: India’s dependence on imported LPG (the refined commodity) has steadily increased to over 64% in FY23, compared to 46% in the pre-PMUY phase. This import dependency exposes the country to international market risks and supply disruptions.
- Budgetary Constraints: Given the domestic budget’s reliance on petroleum taxation and uncertain international prices, it is unlikely that India can return to a regime where a subsidy of approximately INR 20,000 crore (2011–12 prices) was provided each year for LPG consumption over the first two decades of the 21st century.
Steps and a data-driven approach for India’s clean cooking transition
- Promote Electric Cooking: India should actively promote electric cooking, including induction cook-tops, to offset the reliance on flame-based cooking. The IRES conducted by CEEW showed that even at a high tariff of ₹8 per unit of electricity, electric cooking remains cheaper than LPG cooking at current prices.
- Leverage Electricity Access in Rural Areas: With near-universal access to electricity connections in rural areas, specific cooking needs can be shifted to electricity. This approach can effectively reduce the reliance on LPG in rural households.
- Incentivize Transition to Electric Cooking: Policymakers can use a telescopically increasing LPG prices beyond a threshold, such as seven cylinders per average household.
- Support Domestic Manufacturing Ecosystem: Demand from early adopters of electric cooking can spur the domestic manufacturing ecosystem for electric cooking technologies.
- Monetize Avoided Emissions: By transitioning from traditional chulhas to electric cooking, India can avoid climate pollutant release. This can be monetized through the newly launched carbon market, providing financial resources to support the adoption of electric cooking by poorer rural communities.
- Shift the Policy Focus: Policymakers need to move beyond LPG subsidies alone and focus on fostering a bouquet of solutions for India’s clean cooking goals.
Conclusion
- While LPG subsidies have played a crucial role in improving adoption, it is time for India’s clean cooking policy to diversify and embrace a range of clean-cooking technologies. By nurturing a bouquet of clean cooking solutions, India can pave the way for a sustainable and healthier future.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Monsoon and cropping pattern
Mains level: Monsoon's erratic behavior and its impact on Indian agriculture and food security
What’s the news?
- As of July 30, the current month has witnessed a significant 15.7% above-normal rainfall, transforming the cumulative deficit into an overall 6% surplus for the period from June 1 to July 30.
Central idea
- The southwest monsoon made a tardy start, arriving seven days late this year, resulting in 52.6% below-normal rainfall during the first two weeks. By the end of June, there was a cumulative deficiency of 10.1%. However, the scenario changed dramatically from the last week of June, as the monsoon recovered remarkably, covering the entire country by July 2—six days ahead of schedule.
The monsoon’s erratic behavior and its impact on agriculture
- Delayed Crop Planting: The late arrival of the southwest monsoon raised concerns among farmers about their ability to sow crops on time, potentially affecting overall agricultural productivity.
- Uneven Rainfall Distribution:
- During the first two weeks of the monsoon, the country experienced a substantial rainfall deficit, with the overall rainfall being 52.6% below the normal long-period average.
- Eastern and southern India, except Tamil Nadu and Maharashtra, were among the regions that received insufficient rainfall, which can lead to water stress and impact crop growth and yields.
- Cumulative Deficiency: By the end of June, the cumulative rainfall deficiency stood at 10.1%. This cumulative deficit further intensified worries about agricultural output and food security, as it could affect the availability of water for crops during crucial growth stages.
- Crop Recovery: Despite the abysmal start, the monsoon showed signs of recovery. This turnaround led to increased kharif crop plantings, including rice, which had been lagging behind last year’s levels until mid-July.
- Positive Impact on Sowing: The monsoon’s recovery improved sowing conditions for most major agricultural regions, except for certain areas in Uttar Pradesh, Bihar, Jharkhand, and West Bengal, where rainfall remained deficient.
- Subsequent Impact on Yields: While the monsoon’s recovery positively impacted crop sowing, the ultimate impact on yields would largely depend on the rainfall during August and September.
El Niño Concerns
- The Oceanic Niño Index (ONI) in June exceeded the El Niño threshold of 0.5 degrees, reaching 0.8 degrees Celsius.
- Many global weather agencies predicted that El Niño would persist and strengthen through the 2023-24 winter.
- El Niño’s potential strengthening raised concerns about its impact on India’s monsoon in the coming months, particularly during August.
- El Niño is known to suppress rainfall in India, which could lead to a weakening of the monsoon during this crucial period.
- A weakened monsoon can adversely affect crop growth, yields, and overall agricultural productivity.
- If rainfall activity becomes progressively weaker due to El Niño’s influence, the implications can extend beyond the kharif season and impact the rabi winter-spring crops as well.
- Rabi crops, dependent on stored rainwater, might be more vulnerable to a weakened monsoon, leading to potential losses and food production challenges.
Prospects of food security: Food inflation and stock situation
- Rice and Wheat Stocks: As of July 1, rice and wheat stocks in government godowns were reported to be at 71.1 million tonnes (mt). This stock level is the lowest in five years for this date.
- Impact of the Delayed Monsoon on Rice Planting:
- Due to the delayed monsoon, rice acreage initially picked up only after mid-July. It is unclear how much of this acreage is under short-duration varieties (around 125 days from seed to grain maturity).
- If the rice belt had received rain on time, farmers might have planted more long-duration varieties (around 150–155 days), which yield higher at about 1–2 tonnes per hectare.
- Re-transplanting in Punjab and Haryana: There are reports of farmers in Punjab and Haryana having to undertake paddy re-transplanting in large areas along the Beas, Sutlej, Ghaggar, and Yamuna rivers. This re-transplanting is likely for shorter duration varieties that usually yield less.
- Sugar Stocks and Exports: The estimated sugar stocks with mills at the end of September 2023 are projected to be 6.3 mt, a six-year low. The Indian government has already banned exports of sugar to manage domestic supply.
- Pulses and Edible Oil:
- Among pulses, arhar (pigeon-pea) and urad (black gram) have registered a dip in acreage due to rain deficiency in Maharashtra, Karnataka, and Telangana. However, Rajasthan is expected to deliver a bumper crop of moong (green gram).
- Chana (chickpea) has ample stocks due to government procurement, and masoor (red lentil) is being imported at rates below the government’s minimum support price.
- Edible Oil Inflation: Edible oil inflation is likely to remain low, supported by imports projected to exceed 15 mt, a new all-time high, by the end of the current oil year in October 2023.
- Milk Production and Prices: The supply of milk is expected to ease with buffalo calvings beginning from August. This will reflect in increased milk production, peaking during the winter and remaining high until next March-April.
- Vegetables: Vegetable inflation has been on the rise, contributing to an unacceptably high consumer price index inflation number for July. However, with faster supply responses, vegetable inflation is expected to fall as easily as it rose.
Way forward
- Monitor Monsoon Developments: Continuously monitor the progress of the monsoon and its distribution across regions. Timely and accurate weather forecasting can help farmers make informed decisions about crop planting and irrigation.
- Crop Diversification: Encourage farmers to diversify their crop choices to reduce dependence on water-intensive crops. Promote the cultivation of climate-resilient crops that require less water and are suitable for specific agro-climatic zones.
- Strategic Buffer Stock: Maintain a strategic buffer stock of essential food commodities like rice and wheat to address any temporary supply shortages and stabilize food prices during periods of volatility.
- Supply Chain Management: Improve supply chain logistics to ensure smooth transportation and distribution of agricultural produce. This will help prevent post-harvest losses and ensure the timely availability of food in the market.
- Price Stabilization Measures: Implement effective price stabilization measures to control food inflation and prevent price volatility. These measures may include regulating exports, imports, and MSP (Minimum Support Price) mechanisms.
- Encourage Pulses and Oil seed Production: Provide incentives and support to farmers for increasing pulses and oilseed production. This can reduce the country’s dependence on imports and stabilize prices.
- Support the Dairy Sector: Extend support to the dairy sector to enhance milk production and improve the availability of dairy products. This can help stabilize milk prices and ensure food security.
Conclusion
- The monsoon’s erratic behavior has impacted crop sowing and food inflation in India. While the recovery has been promising, concerns over El Niño persist, making it vital for the government to monitor the agricultural sector closely and implement appropriate measures to ensure food security.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Seasonal Migrant Workers, challenges and policies
What’s the news?
- The High Court of Bombay has recently taken suo motu cognisance of the exploitation of the intra-State workforce that migrates seasonally from the drought-affected and water-scarce regions of Marathwada to the sugar-belt region of western Maharashtra.
Central Idea
- According to the Maharashtra Sugar Commissioner, in 2022-23, the net area under sugar cane was 1.487 million hectares, and there were 203 crushing factories in the State that were expected to produce 138 lakh metric tons of sugar. Though intra-State migrant workers form the backbone of the sugar cane industry and economic growth, they have remained critically marginalised and oppressed for several decades.
Seasonal Migrant Workers
- Seasonal migrant workers are individuals who temporarily migrate from one region or area to another for work during specific seasons or periods of the year.
- These workers move to places where demand for labor is higher during certain agricultural or industrial activities, often due to seasonal variations in work opportunities.
- For example, Workers from the drought-affected and water-scarce regions of Marathwada in Maharashtra migrate to the sugar-belt districts of western Maharashtra. They do so to work in the sugar cane industry, particularly during the harvesting season.
Challenges faced by the these workers
- Exploitative Labor Practices: Seasonal migrant workers in the sugar cane industry are often recruited through labor contractors known as Mukadams. This exploitative system allows sugar factories to obtain a large volume of temporary, cheap, and efficient workforce.
- Low Wages and Job Insecurity: Migrant workers often receive low wages for their labor, and their work is typically temporary and seasonal. As a result, they face uncertainty about future employment opportunities.
- Inadequate Working Conditions: The nature of sugar cane harvesting and processing tasks can be physically demanding and hazardous. Workers, including women, may engage in strenuous work, such as head loading, leading to accidents.
- Lack of Social Protection: Seasonal migrant workers may lack access to social protection schemes, such as health insurance and other benefits, leaving them financially vulnerable in case of illness or injury.
- Invisibility and Marginalization: Migrant workers are often marginalised and overlooked in the regions where they migrate for work. This invisibility can limit their access to essential services, education, and healthcare.
- Education Challenges for Children: Children accompanying their parents may face disruptions in their education due to migration, and there may be insufficient alternative schooling models, impacting their learning and development.
Primary drivers of this migration
- Lack of Employment Opportunities:
- Marathwada, being a region with drought-prone areas and water scarcity, faces challenges in providing sufficient employment opportunities to its rural population.
- The agricultural sector, which is the primary source of employment, often experiences prolonged unemployment after the sowing of rabi crops, leaving many small and marginal peasant households without work.
- Crop Failures and Debt: The region of Marathwada is susceptible to crop failures due to erratic monsoons and water shortages. Repeated crop failures result in the accumulation of debt for many farmers and agricultural laborers, making their economic situation precarious.
- Acute Unemployment: Apart from crop-related employment, there may be limited industries or economic activities in the region that can absorb the surplus labor during non-agricultural seasons, leading to acute unemployment.
- Attractive Job Opportunities in the Sugar Cane Industry:
- The sugar-belt districts of western Maharashtra, such as Sangli, Kolhapur, Pune, Satara, Solapur, and Ahmednagar, are known for their sugar cane industry.
- During the sugar cane harvesting and processing seasons, there is a high demand for labor in the sugar factories and fields, making it an attractive destination for seasonal migrant workers seeking employment.
- Mukadam System and Labor Contractors:
- The Mukadam system/ contractors act as intermediaries and provide labor couples to the factories.
- Workers, often in need of employment, rely on the Mukadams, creating a system of dependence that perpetuates the migration.
- Lack of Diversified Livelihood Options: Limited livelihood diversification in the home region may prompt individuals to seek employment opportunities in other regions with more robust economic activities.
Concerns and challenges in framing meaningful policies
- Inadequate Data and Migration Tracking:
- Lack of comprehensive data is hindering the formulation of meaningful policies for seasonal migrants, making it difficult to address their specific needs effectively.
- The Migration Tracking System (MTS) application, launched by the Women and Child Development Department in 2022, aimed to track and enumerate seasonal migrants, particularly focusing on children, pregnant women, and lactating mothers to ensure their well-being and access to services.
- However, the MTS falls short in providing a complete picture of seasonally migrating families, including their employment status, wage structure, and entitlement coverage.
- Plight of Women:
- Women working in the sugar cane industry face strenuous and hazardous tasks, such as headloading cane bundles and carrying heavy weights on trucks or trolleys (Oxfam India 2020).
- Their work adversely impacts their bodies, causing musculoskeletal disorders and several gynecological issues (Oxfam India 2020).
- Early and forced marriages among migrant women lead to problems for adolescent girls, resulting in early pregnancies (15-17 years), deliveries without trained birth attendants, and frequent childbirth (UNESCO).
- Studies have also reported recurring cases of violence and sexual harassment linked to labor contractors (Mukadams) and male workers, further exacerbating the vulnerabilities faced by migrant women.
- Plight of Children:
- Children accompanying their parents to sugar cane fields face blatant violations of the Right to Education (National Education Policy, NEP, 2020).
- The lack of sufficient alternative schooling models affects their education, potentially forcing them into child labor.
- School records often fail to acknowledge the physical absence of these children from school, perpetuating the lack of proper education for them (International Institute for Population Sciences, IIPS, and UNICEF, 2022)
Way forward: Need for government interventions
- Data Collection and Migration Tracking System (MTS): The government should conduct a periodic and time-bound enumerating exercise to create a credible databank of seasonal migrants. Expand the scope of the Migration Tracking System (MTS.
- Empowering Labor Administration: Strengthening labor administration and enforcing labor laws is essential to protect the rights of migrant workers. Regular inspections should be conducted.
- Holistic Policy Development: Formulate comprehensive policies specifically addressing the needs of seasonal migrants. Collaborate with different Ministries and Departments to address the multi-dimensional challenges faced by migrant workers and their families.
- Addressing Women’s Plight: Implement long-term intervention strategies to address the challenges faced by women migrant workers. Provide training and opportunities for skill development to enhance their economic independence and ensure their health and safety in the workplace.
- Ensuring Children’s Education: Implement alternative schooling models for children accompanying their parents to sugar cane fields. Protect their Right to Education and prevent them from being forced into child labor.
- Access to Justice and Safe Working Conditions: Ensure that seasonal migrants have access to justice and are guaranteed safe and healthy working and living conditions. Address the exploitative Mukadam system prevalent in the sugar cane industry to protect the workers’ rights.
Conclusion
- Empowering seasonal migrant workers in Maharashtra’s sugar cane industry is crucial to fostering inclusive economic growth and protecting human rights. The State government must act with strong political will to formulate comprehensive policies and interventions that address the vulnerabilities faced by these workers at both the source and destination regions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Digital payment ecosystem
Mains level: Digital payments landscape in India, financial inclusion and challenges
Central Idea
- The digital payments landscape in India has experienced a remarkable transformation in recent years, with the United Payments Interface (UPI) playing a pivotal role in this revolution. With every neighborhood kirana store now equipped with a QR code scanner, the popularity of digital transactions has soared.
Modes of payment and their growth trends
- UPI (United Payments Interface):
- Introduction: UPI was introduced in 2016.
- Growth: Transactions in UPI have grown in value and volume since its introduction.
- Push factors: Demonetisation in November 2016 and the COVID-19 lockdown in 2020 played a significant role in the widespread adoption of digital payments, contributing to UPI’s popularity.
- Growth rate: From June 2021 to April 2023, UPI payments grew at an average monthly rate of 6%.
- Share of total digital retail payments: The share of UPI payments increased from less than 20% in mid-2021 to about 27% in March 2023.
- Comparison with other modes: UPI’s growth rate outpaced all other modes of payment, including NEFT, IMPS, debit card payments, and prepaid payments.
- Impact on NEFT: The increasing share of UPI payments came mainly at the cost of NEFT transactions, which experienced a decline of about 10 points (from 64% to less than 54%) over the same period.
- Real-time payment settlement: UPI’s popularity might be due to its real-time payment settlement system, similar to IMPS, unlike NEFT.
- NEFT (National Electronic Funds Transfer):
- Growth rate: NEFT transactions grew at an average monthly rate of 3% from June 2021 to April 2023.
- Declining share: The share of NEFT transactions in the total value of digital retail payments declined from 64% to less than 54% over the same period, with UPI gaining popularity.
- IMPS (Immediate Payment Service):
- Growth rate: IMPS transactions grew at an average monthly rate of 3% from June 2021 to April 2023.
- Stable share: The share of IMPS transactions remained relatively stable at about 9% in the total value of digital retail payments.
- Debit card payments and Prepaid payments:
- Growth rate: Debit card payments and prepaid payments experienced slower growth, with an average monthly rate of 1.5% from June 2021 to April 2023.
- Combined share: The combined share of these modes of payment did not exceed 2.5% of the overall digital retail transactions.
Analysis: Financial Inclusion
- Bank Account Penetration:
- India has made remarkable progress in bank account penetration, with 80% of the population having bank accounts in 2017 and 2021, up from 53% in 2014.
- However, a concerning issue is the high percentage of inactive accounts, which stands at 38%. This indicates that a significant portion of the population remains excluded from actively utilizing banking services.
- Gender Gap:
- There is a substantial gender gap in digital transactions, with only 28% of women conducting any digital transaction in 2021, compared to 41% of men.
- The difference of 13 points between men and women in digital transactions is higher than many other comparable countries like Vietnam, Brazil, China, and Kenya, signaling a need for targeted measures to empower women in accessing and using digital payment methods.
- Rural-Urban Divide:
- The rural-urban gap in digital payments is evident, with only 30% of Indians in rural areas making or receiving any digital payment in 2021, compared to 40% in urban areas.
- In contrast, countries like Bangladesh and Kenya display less discrepancy between rural and urban digital payment rates, with over 70% of their populations engaged in digital transactions.
- Overall Digital Transaction Figures:
- Despite the increasing popularity of UPI, only 35% of the population reported carrying out any digital transaction in 2021, indicating that a considerable proportion of the population is not actively participating in digital payments.
- India’s figures for digital transactions are lower compared to the average of 57% for all developing countries and the world average of 64%
Way forward
- Promote Digital Literacy: Provide training programs and workshops to enhance digital literacy, focusing on women and vulnerable populations.
- Reduce Gender Disparities: Implement targeted measures to bridge the gender gap in digital transactions, encouraging more women to participate in digital payment ecosystems.
- Enhance Digital Infrastructure: Expand internet connectivity and improve digital infrastructure in remote and rural areas to ensure equitable access to digital payment facilities.
- Encourage Active Usage of Bank Accounts: Develop financial literacy programs to educate people about the benefits of using their bank accounts actively, thereby reducing the prevalence of inactive accounts.
- Enable Business Participation: Encourage businesses, especially small and medium-sized enterprises, to adopt digital payment methods by providing incentives and simplifying the onboarding process.
- Strengthen Security Measures: Enhance cybersecurity protocols and fraud prevention mechanisms to build trust and confidence among users in using digital payment platforms.
Conclusion
- The UPI has undeniably revolutionised India’s digital payments landscape. However, the journey towards achieving Digital India is far from complete. To address the persisting issues, policymakers must devise targeted interventions to ensure that the benefits of digital payments reach all sections of society. Only then can India truly harness the potential of digital payments and attain the goal of a cashless economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Climate change and the Concept of the Anthropocene
What’s the news?
- Recent proposals to set the starting year of the Anthropocene at 1950 have been met with criticism due to their purportedly flawed representation of the true culprits behind ecosystem damage and climate change.
Central idea
- The term Anthropocene was first proposed by the Nobel laureates, chemist Paul Crutzen and biologist Eugene Stoermer, at a meeting of the little-known International Biosphere-Geosphere Program in 2000 in Mexico. While the term persists, it has garnered limited acceptance within the environmental and geological communities.
The concept of the Anthropocene
- The Anthropocene is a proposed geological epoch that denotes the period during which human activities have had a significant and lasting impact on the Earth’s geology and ecosystems.
- The concept emerged from the realization that human activities, such as deforestation, industrialization, urbanization, and the burning of fossil fuels, have caused profound and widespread changes to the Earth’s atmosphere, oceans, and land, leading to phenomena such as climate change.
- The term anthropocene was first proposed by Nobel laureates Paul Crutzen, a chemist, and Eugene Stoermer, a biologist, in the year 2000.
- They suggested that the current epoch, the Holocene, which began around 11,700 years ago after the last glacial period, had ended and was replaced by the Anthropocene due to the extensive and unprecedented human impact on the planet.
- Some argue that it began with the advent of agriculture around 10,000 years ago, while others propose more recent dates, such as the Industrial Revolution in the late 18th century or the mid-20th century, marked by a significant increase in human-induced environmental changes.
How it falls short in accurately acknowledging the real culprits of ecosystem damage?
- Broad Attribution to All Humanity: The Anthropocene concept attributes the impact on Earth’s biosphere and climate system to all of humanity collectively. By treating all humans as culpable, the concept overlooks the disproportionate role played by certain actors, mainly corporate forces in the West.
- Ignoring Historical Context: The Anthropocene concept does not adequately consider the historical context of environmental exploitation and resource extraction by colonial and imperialist powers, primarily from Western countries. Corporate forces in the West were major drivers of colonial practices that led to ecological harm and climate change in various regions, including Africa, India, and the Americas.
- Downplaying Corporate Influence: While human activities have undoubtedly impacted the environment, the immense economic power and lobbying capabilities of corporations, mainly based in the West, have enabled them to shape environmental policies to their advantage, perpetuating unsustainable practices and hindering more significant efforts to combat climate change.
- Blurring Responsibility: By attributing environmental impacts to humanity as a whole, the Anthropocene concept blurs the lines of responsibility and accountability. This lack of clear attribution allows corporate forces in the West to escape scrutiny and avoid taking necessary actions to mitigate their environmental footprint, putting the onus on all of humanity instead.
- Neglecting Environmental Injustice: The Anthropocene concept does not adequately address the environmental injustices perpetrated by corporate forces in the West against marginalized communities, particularly in the global South.
- Insufficient Focus on Systemic Change: While the Anthropocene concept highlights the need for environmental awareness and action, it may divert attention from the urgent need for systemic changes in corporate practices and global economic structures. Transformative changes are required to address the root causes of ecosystem damage and climate change, which are largely driven by profit-seeking behaviors of corporate entities, especially in the West.
Suggested alternatives to the concept of the Anthropocene
- Corporatocene Epoch: This alternative term proposes a shift in focus from attributing responsibility broadly to all of humanity to specifically holding corporate forces, especially in the West, accountable for their significant role in environmental degradation and climate change.
- Capitalocene: The Capitalocene concept emphasizes the role of capitalism in driving ecological degradation and climate change. It focuses on the exploitative nature of capitalist systems, where profit maximization often takes precedence over environmental sustainability.
- Plantationocene: The Plantationocene perspective recognizes the historical legacy of plantation economies, particularly during the era of European colonialism. It sheds light on the exploitative practices associated with plantations, such as forced labor and ecological disruptions, which have had lasting effects on ecosystems and societies.
- Chthulucene: The Chthulucene concept, proposed by Donna Haraway, challenges the human-centered focus of the Anthropocene and instead emphasizes interconnectedness and multispecies entanglements. By moving away from human-centric narratives, the Chthulucene perspective encourages a more inclusive and collaborative approach to addressing environmental issues.
- Naturesocene: The Naturesocene perspective advocates for acknowledging the agency and contributions of non-human entities in shaping Earth’s systems. This approach seeks to break away from human-centric narratives and recognize the complex interactions between various elements of the natural world.
- Indigenous Perspectives: Indigenous communities often have a deep understanding of their environment and have historically practiced sustainable living. Incorporating their wisdom can lead to more holistic and effective environmental solutions.
Way ahead: The call for accurate attribution
- Identify Corporate Forces: By recognizing the significant impact of corporate entities in shaping environmental policies and practices, we can hold them accountable for their role in ecological harm. Acknowledging the influence of corporate forces empowers us to demand greater transparency and sustainable practices from these entities.
- Acknowledge Historical Injustices: Accurate attribution requires us to confront the historical legacies of imperialism, colonialism, and exploitative practices that have led to the environmental crisis. This entails recognizing how past actions continue to shape the present ecological challenges, particularly in marginalized communities.
- Address Systemic Issues: Accurate attribution calls for a deeper examination of systemic issues, such as capitalist economic structures and unequal power dynamics, that perpetuate environmental degradation. It prompts us to question the prioritization of profit over sustainability and advocate for transformative changes in our economic systems.
- Embrace Indigenous Wisdom: Indigenous communities, with their long-standing relationships with the land, hold valuable knowledge and practices for sustainable living.
- Foster Global Cooperation: Accurate attribution encourages international cooperation to tackle issues like climate change and biodiversity loss, recognizing that the impact of environmental decisions extends beyond national borders.
Conclusion
- The term corporatocene serves as a more fitting descriptor for the current epoch, highlighting the role of corporate forces in shaping the earth’s ecological and climate systems. The West’s historical imperial legacy, coupled with corporate greed, remains the greatest threat to humanity and the environment. By acknowledging the true culprits and holding them accountable, we can pave the way for informed and effective solutions to address the ongoing planetary crisis.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NRF
Mains level: Establishment of the NRF and its significance for India's research landscape
What’s the news?
- The Union Cabinet recently cleared a bill enabling the setting up of the National Research Foundation (NRF), with a corpus of Rs 50,000 crore, to be placed in Parliament in the Monsoon Session.
“There is no single factor more important to the intellectual, social, and economic progress of a nation and to the enhanced well-being of its citizens than the continuous creation and acquisition of new knowledge.”
Central Idea
- The NRF has sparked enthusiasm among researchers and academics, who are eagerly awaiting a boost in research and development (R&D) expenditures by the government. The NRF’s vision, as outlined in the Draft National Education Policy (DNEP) 2019 and the detailed project report (DPR) 2019, is founded on the principle that progress and well-being depend on generating new scientific and social knowledge.
What is the NRF?
- The NRF is a proposed autonomous institution in India, aimed at promoting and funding research and development activities across various disciplines.
- The NRF is founded on the belief that the advancement of human well-being and progress relies on the creation of new scientific and social knowledge.
- It is inspired by the successful model of the National Science Foundation (NSF) of the United States, which has been a major driver of research and innovation in the US.
Functioning and Governance
- The NRF will be established as the highest governing body for scientific research, in accordance with the recommendations of the National Education Policy (NEP).
- The Department of Science and Technology (DST) will serve as the administrative department of the NRF, with a Governing Board consisting of eminent researchers and professionals from various disciplines.
- The PM will be the ex-officio President of the Board, while the Union Minister of Science and Technology and the Union Minister of Education will be the ex-officio Vice-Presidents.
- The Principal Scientific Adviser will chair the Executive Council responsible for the NRF’s functioning.
Mission and Objectives
- Capacity Building: The NRF will focus on enhancing research capabilities at universities and colleges. It will establish doctoral and postdoctoral programs, set up “Centres of Excellence” at universities, and provide funding for shared infrastructure. Mentorship programs will be initiated to empower faculty members and students in higher education institutions.
- Nurturing Excellence in Cutting-Edge Research: The NRF will support curiosity-driven research across disciplines, creating a repository of knowledge for potential future applications and independent work within the country. It will encourage international collaborations and participation in mega-science projects to strengthen research capacity.
- Research for Societal Impact: The NRF will fund competitive peer-reviewed grant proposals across all disciplines, including interdisciplinary research, and across various institutions. It will play a vital role in supporting research with tangible societal impact, recognizing outstanding research through awards and national seminars.
Financial Autonomy and Flexibility of the NRF
- Autonomy in Decision-Making: As an autonomous institution, the NRF will have the authority to make independent decisions related to financial matters, including budget allocation, funding priorities, and research project support. This autonomy enables the NRF to align its financial strategies with its research objectives effectively.
- Block Grant Funding: The NRF will receive financial support from the government in the form of a block grant. The NRF’s governing board will have the discretion to allocate these funds based on the organization’s needs and priorities.
- Flexibility in Allocation: To sustain and enhance the NRF’s activities in the long run, the DPR had proposed an annual grant that would eventually aim to reach at least 0.1% of the country’s Gross Domestic Product (GDP), approximately Rs 20,000 crore in current terms
- Remuneration Structure: The NRF will have the flexibility to determine the remuneration structure for fellowships, projects, and other financial support mechanisms. This ensures that researchers are adequately incentivized and compensated, attracting top talent and promoting quality research.
- Transparent Financial Management: While enjoying financial autonomy and flexibility, the NRF will be accountable for its financial decisions. The NRF’s governing board will establish transparent financial rules and guidelines to ensure proper budget management, reporting, and accountability.
- Corpus Creation: In the initial years, any unspent funds will be held to create a corpus. This corpus will be professionally managed to generate steady returns, which can be utilized to support future research funding and initiatives.
Conclusion
- The establishment of the NRF marks a pivotal moment in India’s research landscape. With its ambitious missions, commitment to excellence, and focus on societal impact, the NRF is poised to transform India into a research and innovation powerhouse. By fostering a culture of inquiry, providing support to cutting-edge research, and promoting collaborations, the NRF has the potential to propel India to a position of global leadership.
Also read:
Where India lags in science, research fields, and can National Research Foundation help fix it?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bilateral and Multilateral infrastructure projects in news
Mains level: India-Myanmar-Thailand Trilateral Highway, significance, challenges and way forward
Central idea
- On the sidelines of the recently concluded 12th Mekong Ganga Cooperation (MGC) meeting in Bangkok on July 16, Indian External Affairs Minister Dr. S. Jaishankar met with his Myanmar counterpart U Than Swe to discuss regional connectivity initiatives, with particular emphasis on expediting the India-Myanmar-Thailand Trilateral Highway (IMT-TH) project.
What is the India-Myanmar-Thailand Trilateral Highway (IMT-TH) project?
- The IMT-TH is a significant regional connectivity project that aims to establish a road network connecting India’s Northeast region with Thailand through Myanmar.
- The primary goal of the project is to enhance trade, commerce, tourism, and people-to-people interactions between the three nations, promoting regional integration and cooperation.
- Within India, the highway is expected to pass through Moreh, Kohima, Guwahati, Srirampur, Siliguri, and Kolkata, spanning a total distance of over 2,800 kilometers.
- The longest stretch of the highway will be in India, while the most minor road section will be in Thailand.
Significance of the IMT-TH
- Enhanced Connectivity: The IMT-TH project aims to improve connectivity between India’s Northeast region, Myanmar, and Thailand. By establishing a direct land route, it reduces travel time and transportation costs, facilitating smoother movement of goods, services, and people across the borders.
- Trade and Commerce: The highway presents a major boost to trade and commerce among the three nations. It opens up new markets and opportunities for businesses, enhances the flow of goods and services, and contributes to economic growth in the region.
- Tourism Promotion: With improved road connectivity, the IMT-TH project is expected to promote tourism between India, Myanmar, and Thailand. Easier travel and cultural exchange will attract more tourists, leading to economic benefits for the tourism industry in each country.
- Regional Integration: The project fosters regional integration and cooperation between India, Myanmar, and Thailand. It strengthens bilateral and multilateral ties, encourages joint ventures, and promotes a sense of partnership for mutual socio-economic development.
- Socio-economic Development: The IMT-TH project has the potential to bring socio-economic development to the regions it traverses. Improved connectivity can lead to better access to healthcare, education, and other essential services, uplifting the quality of life for local communities.
- Strengthening India’s Act East Policy: The project aligns with India’s Act East Policy, which aims to strengthen ties with Southeast Asian countries and foster greater engagement in the region. The IMT-TH highway serves as a tangible demonstration of India’s commitment to regional cooperation and connectivity.
- Regional Stability and Prosperity: By promoting economic cooperation and connectivity, the IMT-TH project contributes to regional stability and prosperity. Enhanced trade and economic ties are likely to reduce tensions and create a more conducive environment for peaceful relations among the nations involved.
- Geopolitical Implications: The project has geopolitical implications as it connects the Indian subcontinent with mainland Southeast Asia. It can serve as an alternative trade route, reducing dependence on traditional maritime routes and providing strategic benefits to the participating countries.
Key Challenges and Bottlenecks
- Road Network in Myanmar: While several sections of the highway have been completed or upgraded, several stretches still require progress. Urgent attention is needed to replace 69 bridges along the Tamu-Kyigone-Kalewa road, which has been delayed since 2015.
- Construction Difficulties: The Yar Gyi road section, characterized by steep gradients and sharp curves, poses considerable construction challenges. Converting a 121.8-km portion of the road into a four-lane motorway between Kalewa and Yar Gyi will require more time than anticipated.
- Security Concerns: The ongoing conflict between the Junta and ethnic armed groups in the Chin State and Sagaing Region of Myanmar poses a significant security risk for contractors, making the resumption of work uncertain.
- Implementing the IMT Trilateral Motor Vehicle Agreement: Infrastructure limitations, bureaucratic hurdles, and security concerns hinder smooth cross-border transportation and the implementation of the agreement between the three nations. Obtaining permits and clearances remains challenging due to differences in vehicle movement rules and procedures in each country.
Way Forward: Key Factors for Successful Implementation
- Infrastructure Development: Addressing Myanmar’s infrastructure limitations is crucial for the smooth movement of vehicles between India, Myanmar, and Thailand. Adequate financing and resource allocation are necessary to overcome these challenges.
- Policy Coordination: Strengthening policy coordination with ASEAN regarding Myanmar is essential for a holistic approach to regional issues and ensuring a stable environment for connectivity projects.
- Commitment to Democratic Transition: India’s commitment to supporting Myanmar’s democratic transition process and emphasis on peace and stability are vital for the region’s progress and prosperity.
Conclusion
- The successful completion of the India-Myanmar-Thailand Trilateral Highway holds the potential to enhance economic growth, regional integration, cultural exchange, and cooperation among the participating nations in the Mekong-Ganga region. By addressing the challenges and focusing on key factors, the project can contribute to peace, stability, and prosperity in the region, reinforcing the spirit of cooperation and connectivity among the nations involved.
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From UPSC perspective, the following things are important :
Prelims level: Semiconductors and application's and ISM
Mains level: India's progress in the semiconductor industry and a global hub of semiconductor manufacturing and its significance
What’s the news?
- The second edition of Semicon India, hosted by the India Semiconductor Mission (ISM), comes at a pivotal moment for the global semiconductor industry.
Central idea
- As technology advances rapidly and geopolitical landscapes shift, India is determined to foster a thriving domestic ecosystem to achieve self-sufficiency and emerge as a key player in the global semiconductor value chain.
What is Semicon India?
- Semicon India is the annual conference organized by the India Semiconductor Mission (ISM).
- The primary objective of Semicon India is to promote the growth and development of the semiconductor industry in India.
- It provides an opportunity for the country to demonstrate its capabilities in semiconductor design and manufacturing while fostering networking and knowledge exchange among participants.
What are Semiconductors?
- Semiconductors are a class of materials that have unique electrical properties, making them intermediate in conductivity between conductors and insulators. They are a vital component in the manufacturing of various electronic devices and play a crucial role in modern technology.
India’s journey in the semiconductor industry
- Early Efforts: India’s initial forays into the semiconductor sector began with public sector undertakings like Bharat Electronics Ltd. (BEL) and some other labs and institutions attempting to establish a presence in the industry. However, despite promising starts, India faced difficulties in achieving the volume and technology needed for competitiveness.
- Missed Opportunities: Over the years, India encountered several missed opportunities that hindered its progress in the semiconductor field. One notable example is missing out on the Fairchild Semiconductor fab in the 1960s. Additionally, regulatory and bureaucratic hurdles prevented global semiconductor companies from showing interest in investing in India’s semiconductor manufacturing.
- Setbacks and Challenges: India’s major VLSI fabrication plant at the Semiconductor Complex Limited (SCL) in Chandigarh began production before Taiwan’s entry into semiconductor manufacturing. Unfortunately, a massive fire in 1989 led to the closure of the plant for many years, hampering India’s progress in the industry.
- Government Recognition: The Indian government came to recognize the economic and geopolitical significance of the semiconductor industry. Realizing the importance of achieving semiconductor self-sufficiency, the government launched the India Semiconductor Mission (ISM) to bolster the domestic ecosystem and position India as a key player in the global semiconductor value chain.
The birth of the India Semiconductor Mission (ISM)
- The India Semiconductor Mission (ISM) was launched as a significant initiative by the Indian government to bolster the semiconductor industry in the country.
- It came into existence with a clear vision of nurturing a thriving domestic semiconductor ecosystem to achieve self-sufficiency and elevate India’s position as a key player in the global semiconductor value chain.
- The mission’s proactive approach, combined with concrete policy interventions and political will, marks a new chapter in India’s journey in the semiconductor sector.
The significance of domestic semiconductor manufacturing for India
- Economic Growth: By manufacturing semiconductors domestically, India can reduce its dependence on imports, save foreign exchange, and contribute to economic growth by generating revenue and employment opportunities.
- Technological Advancement: Domestic semiconductor manufacturing enhances India’s capabilities in cutting-edge technologies, research, and development. It fosters innovation and facilitates the growth of other technology-driven sectors, including artificial intelligence, the Internet of Things (IoT), 5G, and advanced electronics. This, in turn, can boost India’s competitiveness on the global technology stage.
- Self-Reliance and Security: Developing a self-reliant semiconductor ecosystem ensures continuity in critical industries and safeguards against global disruptions. It also enhances India’s national security, as semiconductors play a vital role in defense and communication infrastructure.
- Attracting Investment: A strong semiconductor manufacturing ecosystem attracts both domestic and foreign investments. This leads to the establishment of semiconductor fabrication plants, research centers, and collaborations with global technology companies.
- Fostering Innovation: A thriving semiconductor industry encourages local innovation and entrepreneurship. It provides opportunities for startups and research institutions to develop innovative semiconductor technologies and solutions, positioning India as a global innovation hub.
- Digital Sovereignty: In an increasingly interconnected and digitally driven world, possessing domestic semiconductor manufacturing capabilities is vital for digital sovereignty. It allows India to control its critical technology infrastructure and data security, reducing its reliance on foreign technology providers.
Overwhelming global interest in India as a destination for semiconductor manufacturing
- Growing Market Potential: India’s large and rapidly growing economy presents a significant market for semiconductor products, attracting global semiconductor companies to establish a presence in the country.
- Government Support and Vision: The Indian government’s clear vision and commitment to nurturing a thriving domestic semiconductor ecosystem through initiatives like the India Semiconductor Mission (ISM) have instilled confidence among global players.
- Strategic Importance: Policymakers in India recognize the strategic significance of a robust domestic semiconductor industry for economic growth, safeguarding domestic industries, and ensuring national security.
- Urgency of Semiconductor Self-Reliance: The global semiconductor shortage and disruptions in supply chains have highlighted the urgency of achieving semiconductor self-reliance, making India an attractive location for semiconductor manufacturing.
- Fiscal Incentives and Regulatory Support: The Indian government’s unprecedented commitment to fiscal incentives and regulatory support has drawn significant interest from semiconductor companies globally.
- Skilled Workforce: India’s large pool of skilled engineers and technical talent offers an advantageous workforce for semiconductor companies looking to establish operations in the country.
- Collaboration with Global Partners: Collaborative agreements with countries like the US and Japan in semiconductor development, research, design, and talent development have enhanced India’s appeal as a semiconductor manufacturing hub.
- Focus on Sustainability: India’s emphasis on sustainable semiconductor manufacturing through green technologies and resource-efficient practices aligns with the global push for environmentally responsible production.
- Long-term Support and Progress under ISM: The Indian government’s commitment to long-term support for the semiconductor industry, as demonstrated through initiatives like the Design Linked Incentive (DLI) scheme and modernization of facilities, has garnered attention.
- Potential for Innovation: India’s thriving innovation ecosystem, including startups and research institutions, presents opportunities for collaborative innovation and technological advancements in the semiconductor industry.
Conclusion
- From missed opportunities to a thriving domestic ecosystem, India’s progress in the semiconductor industry is a global case study in building sectors from scratch through appropriate policy interventions and political will. India is now on track to lead the global race in the semiconductor value chain. The ISM reflects India’s determination to achieve semiconductor self-sufficiency and emerge as a major player in the global semiconductor industry.
Also read:
Semiconductor Fabrication in India: Learning from Past Attempts and Embracing Alternate Approaches
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From UPSC perspective, the following things are important :
Prelims level: Cinematograph (Amendment) Bill
Mains level: Film piracy issues, Cinematograph (Amendment) Bill, 2023 and its significance
What’s the news
- The Rajya Sabha on July 27 passed the Cinematograph (Amendment) Bill, 2023, that introduces stringent anti-piracy provisions, expanding the scope of the law from censorship to also cover copyright.
Central idea
- The Cinematograph (Amendment) Bill, 2023, seeks to amend the Cinematograph Act, 1952, which authorises the Central Board of Film Certification (CBFC) to require cuts in films and clear them for exhibition in cinemas and on television. It also empowers the Central Board of Film Certification (CBFC) to give separate certificates for a film’s exhibition on television or other media.
What is meant by film piracy?
- Film piracy refers to the unauthorized copying, distribution, exhibition, or downloading of films without the consent of the copyright owner or the film’s creators. It involves the illegal duplication and dissemination of copyrighted movies through various means.
- Film piracy is a significant concern for the film industry, as it undermines the economic viability of films and negatively impacts the revenue generated from legitimate sources.
What is the Central Board of Film Certification (CBFC)?
- The CBFC, commonly known as the Censor Board, is a statutory body in India responsible for certifying films for public exhibition.
- It operates under the Ministry of Information and Broadcasting, Government of India.
- The CBFC’s primary role is to review and rate films based on their content and to ensure that films adhere to the guidelines and principles laid down in the Cinematograph Act, 1952, and the rules framed thereunder.
Key provisions of the Cinematograph (Amendment) Bill, 2023
- Crackdown on Film Piracy: The bill aims to address the issue of film piracy by imposing strict penalties on those involved in making pirated copies of movies. It prescribes a three-year jail term and a fine of up to 5% of a movie’s production cost for offenders.
- Introduction of New Certifications: The bill proposes three new certifications under the ‘UA’ (Parental Guidance) category: UA 7+, UA 13+, and UA 16+. These certifications indicate that children younger than the specified age limits can watch such movies with parental guidance.
- Empowerment of the CBFC: The bill grants enhanced powers to the Central Board of Film Certification (CBFC) to issue separate certificates for films to be exhibited on television or other media platforms. It also clarifies that the CBFC certificates will be valid perpetually and that the Centre will not have any revisional powers over them.
- Harmonization with Existing Laws: The bill aims to harmonize the Cinematograph Act, 1952 with other laws that tangentially address piracy, such as the Copyright Act, 1957, and the Information Technology Act, 2000.
The journey of the Cinematograph (Amendment) Bill
- Cinematograph (Amendment) Bill, 2019: The first version of the bill was introduced in the Rajya Sabha in 2019. It was primarily focused on addressing film piracy. The bill aimed to introduce measures to tackle the unauthorized recording and exhibition of films, which had been causing significant financial losses to the film industry.
- Cinematograph (Amendment) Bill, 2021: In response to the recommendations made by the Standing Committee on Information Technology and the feedback received from stakeholders and the public, a revised version of the bill was released.
- Public Feedback and Consultations: The Cinematograph (Amendment) Bill, 2021, was made available for public comments and feedback. This step allowed individuals and organizations to provide their views on the proposed amendments, ensuring a more inclusive and participatory legislative process.
- Industry Stakeholder Consultations: In 2022, consultations were held with industry stakeholders, including representatives from the film industry and related sectors. The input and concerns raised during these consultations were taken into account to further refine and finalize the provisions of the bill.
- Cinematograph (Amendment) Bill, 2023: Based on the inputs gathered from public feedback and industry stakeholders, the final version of the bill, now known as the Cinematograph (Amendment) Bill, 2023, was prepared. This version included all the proposed changes and updates aimed at addressing film piracy, enhancing film certification, and aligning the Cinematograph Act with other relevant laws.
Significance of the Bill
- Curbing Film Piracy: The bill introduces stringent penalties to deter film piracy, addressing a significant concern for the film industry and protecting intellectual property rights.
- Age-Appropriate Film Viewing: The introduction of new age-based certifications ensures that films are categorized appropriately, allowing parents to make informed decisions about their children’s film choices.
- Modernizing Film Certification: The bill empowers the CBFC to issue separate certificates for films shown on various media platforms and provides perpetual validity to CBFC certificates, streamlining the film certification process.
- Aligning with Existing Laws: The amendment harmonizes the Cinematograph Act, 1952, with other relevant laws, ensuring consistency and coherence in the legal framework governing the film industry.
- Addressing Industry Demands: The bill responds to the film industry’s demand to combat unauthorized film exhibition and recording, protecting the industry’s interests and fostering a thriving creative environment.
- Strengthening the Film Industry: By curbing piracy and protecting intellectual property, the bill aims to strengthen the film industry, attract investments, and contribute to India’s cultural and economic landscape.
Conclusion
- The passage of the Cinematograph (Amendment) Bill, 2023, is a significant step towards protecting the film industry from piracy and streamlining the film certification process. By embracing the necessary amendments, India reaffirms its commitment to nurturing a vibrant and thriving film industry while safeguarding creative content from piracy-related challenges.
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From UPSC perspective, the following things are important :
Prelims level: PMJAY and schemes
Mains level: Government sponsored schemes, challenges, concerns and solutions
What’s the news?
- A recent report has revealed disturbing incidents of deception against poor patients at Safdarjung Hospital (‘Bypassing Ayushman Bharat, doctor at a top government hospital duped patients and made killings on implants).
Central Idea
- Designing a government-sponsored health insurance scheme for the poor presents significant challenges, including the issue of information asymmetry between doctors and patients, which may lead to the denial of benefits for the disadvantaged.
What is Ayushman Bharat?
- Pradhan Mantri Jan Aarogya Yojana (PMJAY), also known as Ayushman Bharat or the National Health Protection Scheme (NHPS), is a flagship government-sponsored health insurance scheme launched by the Government of India in September 2018. The primary aim of PMJAY is to provide financial protection and access to quality healthcare to economically vulnerable sections of society.
Key features
- Health Insurance Coverage: PMJAY provides health insurance coverage to eligible beneficiaries, especially those belonging to economically weaker sections (EWS) and low-income families. It aims to cover around 10 crore (100 million) families across India.
- Cashless and Paperless Treatment: Under PMJAY, eligible beneficiaries can avail of cashless and paperless treatment in empaneled public and private hospitals across the country. The scheme ensures that beneficiaries are not required to pay for the treatment at the time of hospitalization.
- Pre-Defined Medical Packages: The scheme offers a comprehensive set of pre-defined medical packages covering various medical and surgical treatments. These packages are designed to provide essential healthcare services, including diagnostics, medicines, and other treatments.
- Coverage for Pre-Existing Conditions: PMJAY provides coverage for pre-existing illnesses and health conditions from the date of enrollment. This ensures that beneficiaries with existing health conditions can also access healthcare services under the scheme.
- No Cap on Family Size: There is no restriction on the family size covered under PMJAY. All eligible family members can avail of the benefits of the scheme.
- Portability: PMJAY is portable across the country, meaning beneficiaries can avail of treatment in any empaneled hospital in any state or Union Territory, irrespective of their place of origin
- Identification of Beneficiaries: Beneficiaries under PMJAY are identified through the Socio-Economic Caste Census (SECC) data and are issued the Ayushman Bharat – PMJAY Golden Card, which serves as proof of eligibility.
- Online Verification: The scheme employs an online verification process to ensure seamless and efficient identification and validation of beneficiaries.
- Collaborative Effort: PMJAY is a joint collaboration between the central and state governments, and each state has the flexibility to implement the scheme based on its specific requirements.
The Incident of deceptive practices at Safdarjung Hospital
- Misleading Patients: The report reveals that certain doctors deceive patients by providing false information about delays in Ayushman Bharat Clearance. This deceptive tactic aims to divert patients towards private alternatives rather than enrolling them in the PMJAY scheme.
- Influence of Treating Doctors: The incident highlights the significant role of treating doctors in determining the medical package for patients and whether they are enrolled under the PMJAY scheme.
Concerns raised over the implementation of government-sponsored health insurance schemes
- Deceptive Practices: Misinformation about Ayushman Bharat Clearance delays is used as a tactic to divert patients towards private alternatives instead of enrolling them in the PMJAY. Such practices can deprive eligible patients of government-sponsored health insurance benefits and lead to potential financial exploitation.
- Doctor’s Influence: The treating doctors wield significant influence in determining the medical package for patients and their enrollment in the PMJAY scheme. This discretionary power can create an environment where some doctors prioritize their personal interests, such as financial gains from private channels, over the best interests of their patients.
- Lack of Active Interest: Although the time taken to settle claims was reasonable, the proportion of settled claims in public facilities was lower compared to private facilities. This points to potential issues in operational dynamics that may hinder the effective implementation of the scheme and limit its benefits for the poor.
- Inadequate Incentives: The financial incentives provided to doctors in public facilities under PMJAY may not be sufficiently attractive to encourage them to actively participate in the scheme. Some doctors may find greater financial gains through rent-seeking practices with private players, leading to a preference for private alternatives over the government-sponsored scheme.
- Limited Supporting Staff: The presence of limited supporting staff, such as Arogyamitras, responsible for registering patients under PMJAY, may impact the smooth implementation of the scheme. The Arogyamitras’ remuneration being linked to pre-authorizations rather than claim settlement may result in less emphasis on claim follow-up and documentation.
Way forward: Steps to improve operational dynamics
- Enhancing Doctor Incentives: Reviewing and revising the financial incentives provided to treating doctors could make the PMJAY scheme more attractive and encourage greater participation.
- Strengthening Arogyamitras’ Role: Linking the remuneration of Arogyamitras to the successful claim settlement and providing necessary support staff can incentivize them to be more proactive in claim documentation and follow-up.
- Streamlining the Claim Settlement Process: Simplifying and expediting the claim settlement process can encourage public facilities to actively participate in PMJAY, ensuring timely reimbursements and improving their financial viability.
- Increased Oversight: Implementing regular audits and stringent penalties for fraudulent practices can help curb deceptive activities and enhance transparency and accountability within public facilities.
Conclusion
- While the potential of PMJAY has been extensively discussed in the context of private hospitals, the operational dynamics within public facilities have received less attention. A collaborative effort involving doctors, Arogyamitras, and state governments can unleash the true potential of these schemes, contributing to improved health outcomes and greater inclusivity in healthcare services.
ALso read:
Digital Birth Certificates to streamline Official Documentation
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From UPSC perspective, the following things are important :
Prelims level: Biodiversity Acts
Mains level: Biological Diversity Acts and Amendment Bill, significance
What’s the news?
- On July 25, the Lok Sabha gave its approval to a Bill to amend some provisions of the Biological Diversity Act of 2002.
Central Idea
- The Lok Sabha’s recent approval of the bill marks a significant step in preserving India’s biological diversity and promoting sustainable utilization. The bill aims to address concerns raised by central ministries, state governments, researchers, industries, and other stakeholders regarding the implementation of the 2002 Biological Diversity Act.
What is the Biodiversity Law?
- The Biodiversity Law, also known as the Biological Diversity Act of 2002, is a significant piece of legislation in India.
- Its main objective is to conserve the country’s biological diversity, which includes animals, plants, microorganisms, gene pools, and the ecosystems they inhabit.
- The law was enacted in response to the global need to protect and preserve biological resources, which were under threat due to human activities.
Key amendments proposed in the Biodiversity Law
- Exemption for Indian Systems of Medicine: Certain users of biological resources, like practitioners of Indian systems of medicine, are exempt from making payments to the Access and Benefit Sharing (ABS) mechanism.
- Treatment of Indian Companies with Foreign Equity: Companies registered in India and controlled by Indians are treated as Indian companies, even with foreign equity or partnership, reducing restrictions on their activities related to biological resources.
- Streamlining the Approval Process: Provisions have been included to expedite approval for research using biological resources and filing patent applications.
- Rationalization of Penalty Provisions: Penalties for wrongdoing by user agencies have been rationalized.
Significance of the Biodiversity Law
- Conservation of Biological Diversity: The Biodiversity Law is crucial for preserving the diverse range of animals, plants, microorganisms, and ecosystems found in India.
- Addressing Global Concerns: The law is a response to the global need to protect and conserve biological resources, which are under threat due to human activities. It aligns India with international efforts to safeguard biodiversity.
- Implementation of CBD Commitments: India agreed to the Convention on Biological Diversity (CBD) in 1994. The Biodiversity Law helps fulfill India’s commitments under this international framework agreement, promoting biodiversity conservation and sustainable use.
- Sustainable Resource Utilization: The law emphasizes the sustainable use of biological resources, ensuring that they are utilized in a manner that does not deplete them or harm the environment. This approach promotes responsible resource management.
- Supporting Traditional Systems of Medicine: The law recognizes the significance of traditional medicine systems like Ayurveda, Unani, and Siddha, which rely on medicinal plants and biological resources. It supports the conservation of these resources and traditional knowledge.
- Access and Benefit Sharing (ABS) Mechanism: The Biodiversity Law incorporates an Access and Benefit Sharing mechanism in alignment with the Nagoya Protocol. It ensures the equitable sharing of benefits arising from the utilization of genetic resources with local communities.
Factors behind the need for amendments
- Addressing Stakeholder Concerns: Over the years, various stakeholders, including practitioners of traditional medicine, the seed sector, pharmaceutical companies, and the research community, raised concerns about certain provisions in the original law.
- Supporting Traditional Systems of Medicine: One of the key reasons for the amendments was to encourage Indian systems of medicine, such as Ayurveda. The amendments sought to provide exemptions or favorable conditions for practitioners of traditional medicine to access and use these resources.
- Attracting Foreign Investment: By simplifying and streamlining processes, the government intended to make it easier for foreign entities to engage in research and business activities related to biodiversity in India.
- Promoting Research and Innovation: The amendments aimed to expedite the approval process for research involving biological resources and simplify procedures for filing patent applications.
- Rationalizing Penalty Provisions: The amendments likely involved rationalizing the penalty provisions for wrongdoing by user agencies. This was done to ensure that the penalties imposed for non-compliance with the law were fair and appropriate.
Way forward
- Integrated Policies: Develop and implement integrated policies that prioritize both biodiversity conservation and sustainable utilization. Ensure that economic development initiatives are aligned with environmental protection goals.
- Stakeholder Collaboration: Foster collaboration among government bodies, NGOs, industries, local communities, and researchers to jointly address biodiversity challenges and promote sustainable practices.
- Empower Local Communities: Empower local communities, especially indigenous groups, in biodiversity management and decision-making processes. Recognize their traditional knowledge and incentivize their involvement in conservation efforts.
- Conservation Reserves and Protected Areas: Strengthen and expand the network of conservation reserves and protected areas to safeguard critical ecosystems and habitats.
- Sustainable Resource Use: Promote sustainable practices in industries relying on biological resources, such as agriculture, pharmaceuticals, and biotechnology. Encourage eco-friendly and resource-efficient approaches.
- Green Business Practices: Encourage businesses to adopt green practices and environmental certifications, recognizing their commitment to sustainability.
- Education and Awareness: Raise public awareness about the importance of biodiversity, conservation, and sustainable resource utilization. Educate citizens about the benefits of preserving natural resources.
Conclusion
- The passage of the Biological Diversity (Amendment) Bill by the Lok Sabha reflects India’s commitment to preserving its rich biological diversity and promoting its sustainable use. As the bill advances to further stages of approval, it is essential to strike a balance between conservation and utilization, ensuring that future generations can benefit from the wealth of biological resources the country possesses.
Also read:
Monsoon session of Parliament to decide fate of Biological Diversity (Amendment) Bill
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From UPSC perspective, the following things are important :
Prelims level: Key concepts
Mains level: Fiscal deficit, public debt its impact and Fiscal consolidation measures
What’s the news?
- The Indian economy grapples with a soaring fiscal deficit and public debt, posing a critical challenge to its financial stability. With impending state and general elections in 2023 and 2024, the electoral budget cycle could worsen the debt situation, raising questions about its sustainability.
Central idea
- The escalating levels of fiscal deficit and public debt in India have been a persistent concern, even before the COVID-19 pandemic hit. Although there has been some recovery in the post-pandemic period, projections indicate that returning to pre-pandemic debt levels in the medium term seems unlikely.
What is meant by fiscal deficit?
- A fiscal deficit refers to the difference between a government’s total expenditures and its total revenues (excluding borrowings) during a specific period, usually a fiscal year.
- It is a crucial component of a country’s fiscal policy and represents the amount of money the government needs to borrow to meet its expenditure commitments when its total expenses exceed its total revenue.
What is meant by public debt?
- Public debt represents the total amount of money that a country’s central government owes to various creditors, whether individuals, financial institutions, or foreign governments, at a specific point in time.
- It is the cumulative result of past fiscal deficits and surpluses. Public debt includes all outstanding government borrowings, including both short-term and long-term debt.
What is meant by financial repression?
- Financial repression is an economic term used to describe government policies and regulations that manipulate interest rates, capital flows, and other financial instruments to channel funds towards the government’s debt obligations and other strategic priorities.
- It typically involves measures aimed at reducing the cost of government borrowing and raising funds for public spending, often at the expense of savers and investors.
India’s fiscal deficit and public debt
- One of the Highest Debt Levels: Even before the COVID-19 pandemic, debt levels were among the highest in the developing world and emerging market economies.
- Fiscal Deficit: The fiscal deficit in 2020–21 increased to 13.3% of GDP and has receded to 8.9% in the post-pandemic period.
- Public Debt: The aggregate public debt relative to GDP was 89.6% in 2020–21 and decreased to 85.7% after the economy started recovering from the pandemic.
- Debt-to-GSDP Ratios in Specific States: The debt-to-GSDP ratios in specific states: Punjab (48.9%), West Bengal (37.6%), Rajasthan (35.4%), and Kerala (close to 33%)
Impact of financial repression
- High Debt and Interest Payments:
- Financial repression may lead to higher government debt levels as it facilitates borrowing at low-interest rates. As a result, interest payments on the accumulated debt can become a significant burden on the government’s finances.
- On average, interest payments constitute over 5% of GDP and 25% of revenue receipts in India. This surpasses government expenditures on critical sectors like education and healthcare, hindering investments in essential infrastructure and human development.
- State-Specific Concerns: Certain states in India, such as Punjab, Kerala, Rajasthan, and West Bengal, are particularly affected by high Debt-to-GSDP ratios. The debt burden in these states poses challenges for managing finances and implementing developmental initiatives.
- Constraints on Fiscal Policy: Elevated debt levels resulting from financial repression can limit the government’s ability to implement counter-cyclical fiscal policies during economic downturns. This constraint can hinder the government’s capacity to respond effectively to shocks and economic challenges.
- Distorted Financial Market: Government interventions, such as the SLR requirement, can create imbalances in the allocation of funds, affecting the availability of credit for productive sectors like manufacturing.
- Impact on Sovereign Rating and External Borrowing: Persistently high deficits and debt levels can lead to lower sovereign ratings by rating agencies. A low sovereign rating can increase the cost of external commercial borrowing, making it more expensive for the government to raise funds from international markets.
- Burden on Future Generations: Excessive debt accumulation can lead to intergenerational equity issues, with future citizens having to repay the debt and interest accrued during the period of financial repression.
Way forward: Financial Consolidation
- Fiscal Responsibility and Budget Management (FRBM) Rules: Enforce and strengthen the existing FRBM rules to ensure prudent fiscal management. Adhering to these rules can help control deficits and prevent excessive debt accumulation.
- Targeted Interventions: Implement targeted interventions to reduce the debt burden while addressing critical needs such as education, healthcare, and infrastructure development. For instance, the government can allocate funds specifically to boost primary education and healthcare access in states with high debt burdens, such as Punjab, Kerala, Rajasthan, and West Bengal.
- Infrastructure Investments: Prioritize investments in physical infrastructure, human capital, and green initiatives to enhance economic productivity and foster sustainable development. For example, investing in renewable energy projects can support the green transition while creating employment opportunities.
- Enhance Tax Collection and Compliance: Improve tax administration and compliance to increase government revenue. Utilizing technology for cross-matching of GST and income-tax returns can enhance tax collection efficiency and curb tax evasion.
- Fiscal Reforms at the State Level: Encourage states to adopt responsible fiscal policies and avoid excessive borrowing. For example, the central government can provide incentives to states that adhere to fiscal discipline and implement reforms to improve fiscal health.
- Disinvestment and Efficient Asset Management: Pursue disinvestment and strategic asset management to optimize government resources and reduce the need for excessive borrowing. For instance, the government can consider divesting non-essential government assets and utilizing funds from asset sales efficiently. Instead of pouring money into BSNL, which may be better served by private sector expertise, the government can explore disinvestment options.
- Market-Based Interest Rates: Gradually transition towards market-driven interest rates on government borrowing to ensure a more efficient allocation of capital in the financial market. This can help improve credit availability for the private sector.
- Encourage Private Sector Participation: Promote private sector participation in critical sectors, allowing the government to focus on its core functions. For instance, the government can encourage private investment in infrastructure projects through public-private partnerships (PPPs).
- Focus on Cash Transfers: Consider providing targeted cash transfers instead of subsidies for specific commodities and services. Cash transfers can be more efficient at redistributing resources without causing unintended distortions in relative prices.
- Medium-Term Fiscal Consolidation: Develop and implement a medium-term fiscal consolidation plan to gradually reduce the fiscal deficit and public debt levels sustainably. This plan can include specific targets for debt reduction and deficit control.
Conclusion
- Financial repression’s adverse effects, along with the heavy costs of high deficits and debt, necessitate responsible policy interventions and fiscal consolidation. Emphasizing technological advancements and prudent economic policies will be vital in tackling the debt burden and ensuring long-term fiscal sustainability.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tax reforms in news
Mains level: Tax on online gaming, advantages and impact on industry, Need for balanced approach
What’s the news?
- The Goods and Services Tax (GST) Council recently decided to impose the top 28% slab on online gaming, horse racing, and casinos.
- The government anticipates earning an additional Rs 20,000 crore per annum.
“Nothing in this world is certain but death and taxes.” -Benjamin Franklin
Central Idea
- The recent decision of the 50th GST Council to impose a staggering 28% tax on the total amount involved in online games has sparked concerns over the survival of an entire industry that employs a substantial workforce.
The Distinction between Games of Skill and Games of Chance
- For more than 150 years, the legal system has distinguished between games of skill and games of chance.
- While games of chance rely solely on luck and are akin to gambling, games of skill involve a level of competence, where the outcome is determined by the players’ abilities.
- The Public Gambling Act of 1867 recognizes games of skill as distinct from gambling, offering a legal shield to the former.
What is the Rationale Behind Levying a 28% Tax on Online Gaming?
- Revenue Generation: The primary objective is to generate additional revenue for the exchequer by taxing the booming online gaming industry, which has witnessed significant growth and popularity.
- Consistency in the Tax System: Applying a 28% GST on online gaming activities is aimed at ensuring equal treatment of various forms of entertainment and recreational activities in the tax system.
- Regulatory Control: The imposition of a higher tax rate may serve as a means of regulatory control over the online gaming industry, potentially influencing consumer behavior and promoting responsible gaming practices.
- Foreign Investment Considerations: Setting a tax rate comparable to global standards may attract foreign investments in the online gaming sector while ensuring tax compliance within the industry.
- Addressing Social Concerns: The government aims to address concerns related to excessive gaming and potential social issues by imposing a higher tax rate.
- Boosting Government Revenues: The estimated annual revenue boost of Rs 20,000 crore highlights the government’s view of the online gaming industry as a lucrative source of tax collection.
Impact of 28% GST on the Online Gaming Industry?
- Financial Burden on Players: The 28% GST on the entire amount pooled in online games may result in a higher financial burden on players, especially for those who do not win or participate frequently. This could discourage some players from engaging in online gaming activities.
- Viability of the Industry: The higher tax rate may impact the industry’s viability, particularly for gaming companies and startups. It could lead to reduced revenues for the companies, affecting their ability to invest in game development and innovation.
- Competitiveness: The increased tax rate may make Indian gaming platforms less competitive compared to international counterparts that might not be subject to such high taxation. This could lead to players shifting to offshore gaming platforms, impacting the domestic industry.
- Employment in the Sector: The online gaming industry in India is a significant employer, providing direct and indirect employment to thousands of people. The higher tax rate may put financial strain on companies, leading to potential job losses and reduced opportunities for growth in the sector.
- Impact on Foreign Investments: The higher tax rate could deter foreign investments in the Indian gaming industry, as investors may consider the tax burden and its potential effects on returns.
- Consumer Behavior: The higher GST rate might alter consumer behavior, with some players reducing their spending on online games or looking for alternative sources of entertainment.
- Potential Black Market: A high tax rate might incentivize some players to resort to black market or unregulated platforms to avoid the tax burden, leading to potential illegal activities and revenue losses for the government.
- Regulatory Challenges: The implementation of a 28% GST on online gaming might pose regulatory challenges for both gaming companies and the government, especially in ensuring compliance and proper tax collection.
- Innovation and Investment in the Sector: The higher tax rate may impact investments in research and development, innovation, and new game development within the industry.
- Growth of E-sports: The higher tax burden on gaming companies may affect the growth of e-sports and competitive gaming in India, as organizers and sponsors may face increased financial pressures
Way Forward: The Need for Balanced Taxation
- Engage Stakeholders: The government should engage in meaningful discussions with industry stakeholders, including gaming companies, players, and experts, to understand the unique challenges and opportunities in the sector.
- Review Taxation Structure: Consider revisiting the current tax structure and exploring alternatives such as focusing on service fees rather than taxing the entire pooled amount. Aligning with global practices can lead to more sustainable and equitable taxation.
- Promote Responsible Gaming: Allocate a portion of tax revenue to promote responsible gaming practices, player protection, and awareness programs to address potential social concerns.
- Encourage Domestic Investment: Provide incentives and tax breaks to encourage domestic gaming companies to invest in research, development, and innovation, fostering the growth of the industry.
- Support E-sports: Recognize the potential of e-sports and competitive gaming, and offer tax incentives to organizers and sponsors of e-sports’ events to stimulate the growth of the e-sport’s ecosystem.
- Continuous Monitoring: Regularly monitor the impact of taxation policies on the industry, employment, and overall revenue collection. Adjust the policies as necessary to maintain a balanced approach.
- International Collaboration: Collaborate with other countries and learn from their experiences in gaming taxation to refine and implement effective policies.
Conclusion
- The decision to impose a 28% GST on the entire amount pooled in online games could be catastrophic for the industry. A more balanced approach, considering the industry’s employment potential and overall economic impact, is essential. By focusing on reasonable taxation and fostering growth, policymakers can ensure the survival and prosperity of the online gaming industry while still collecting revenue for the government’s coffers.
Also read:
Goods and Services Tax (GST)
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From UPSC perspective, the following things are important :
Prelims level: Key concepts such as EPR, circular bioeconomy and various government schemes
Mains level: Circular bioeconomy significance and India's efforts
What’s the news?
- India has prioritized Resource Efficiency and the Circular Economy as one of its core themes during its G-20 presidency.
Central idea
- In the pursuit of sustainable development and the realization of the Sustainable Development Goals, decoupling resource utilization from economic growth is crucial. Recognizing the urgency to transition from the take-make-dispose model to the reduce-reuse-recycle approach.
What is the take-make-dispose model?
- The take-make-dispose model, also known as the linear economy model, refers to the traditional and linear approach to resource consumption and production in our economic system.
- In this model, resources are extracted from nature (take), processed into products (make), used by consumers, and then discarded as waste (dispose) after their useful life.
- It follows a one-way flow of resources from extraction to disposal without considering the long-term environmental and social impacts
What is the reduce-reuse-recycle approach?
- The reduce-reuse-recycle approach is a sustainable waste management strategy that aims to minimize the environmental impact of resource consumption and waste generation.
- It promotes a circular economy model by encouraging responsible resource use, extending the lifespan of products, and maximizing the recovery of materials to be used in new products.
What is meant by circular economy?
- A Circular economy is an economic model that aims to maximize resource efficiency and minimize waste by promoting the reuse, recycling, and regeneration of materials and products. It is a departure from the traditional linear economy, where resources are extracted, processed, used, and disposed of as waste.
What is meant by circular bioeconomy?
- Circular bioeconomy is an approach that seeks to combine the principles of circular economy with the use of renewable biological resources.
- The Circular bioeconomy adopts a closed-loop system, where biological resources, such as organic waste and agricultural by-products, are managed in a way that maximizes their value and minimizes their impact on the environment.
What is Extended Producer Responsibility (EPR)?
- EPR is a policy approach that holds producers accountable for the entire life cycle of their products, including their post-consumer stage.
- The concept of EPR shifts the responsibility for the management of products, especially waste and recycling, from the end-user or consumer to the manufacturer or producer.
India’s exemplary approach to EPR
- Centralized EPR Portal: India has established a centralized EPR portal, where over 20,000 registered Producers, Importers, and Brand Owners (PIBOs) are actively participating in EPR initiatives. This centralization streamlines waste collection efforts and facilitates better coordination in managing waste materials.
- Robust Framework: With over 1,900 plastic waste processors registered on the EPR portal, India boasts one of the largest frameworks for EPR implementation. This extensive network of processors contributes to efficient plastic waste management and recycling.
- Significant EPR Obligation: The combined EPR obligation of registered PIBOs amounts to a substantial 3.07 million tons. This indicates a substantial commitment by producers to manage and recycle the waste generated from their products, contributing to sustainable waste management practices.
- Comprehensive Rules for E-Waste and Battery Waste: In addition to plastic waste, India has also notified comprehensive rules for e-waste and battery waste management. This indicates a comprehensive approach to addressing various waste streams and promoting responsible waste management across different sectors.
Why is moving towards a circular Steel sector crucial?
- Commitment to Net Zero Ambitions: Most G-20 member countries have pledged to achieve net-zero emissions, indicating a collective determination to address climate change and promote sustainability.
- Improving Recycling Rates: To ensure environmentally responsible resource consumption, there is a need to raise the current recycling rates of steel, which currently range from 15% to 25%. Increased recycling can reduce the demand for new raw materials and lower the industry’s environmental impact.
- Vital Role of Steel in Infrastructure: Given its crucial role in infrastructure development, the efficient utilization of steel is of utmost importance. A circular steel sector can optimize resource use and minimize waste generation.
- Growing Steel Demand: With the global economy growing, the demand for steel, especially in developing economies like India, is expected to rise. Transitioning to a circular model becomes even more significant in managing this increased demand sustainably.
- Tackling Steel Sector Emissions: About 7% of energy sector emissions globally are attributed to iron and steel production. A circular steel sector is a key strategy to address these emissions and reduce the industry’s overall carbon footprint.
- Blueprint for a Net Zero Pathway: The presidential document on the Circular Economy in the Steel Sector serves as a potential blueprint to achieve a net-zero pathway for the steel industry.
- Sharing Best Practices: As different countries have implemented various EPR models, sharing best practices among G-20 member countries becomes crucial to accelerate the transition to a circular economy in the steel sector.
India’s efforts towards a circular bioeconomy and Biofuels
- Pradhan Mantri JI-VAN Yojana:
- This initiative provides financial support to integrated bioethanol projects that aim to set up Second Generation (2G) ethanol projects.
- 2G bioethanol technology allows for the production of bioethanol from waste feedstock, including crop residues and municipal solid waste, which would otherwise have no value.
- Enhancing Value from Waste:
- With 2G bioethanol technology, India maximizes the value derived from agricultural and urban waste, contributing to a more sustainable and circular economy.
- By converting waste materials into bioethanol, the country promotes efficient resource utilization and minimizes waste disposal challenges.
- Biomass Blending in Thermal Power Plants:
- India has taken significant steps to promote the use of biomass in the energy sector.
- It has made it mandatory for coal-burning thermal power plants to blend 5% of biomass pellets with coal.
- This measure reduces carbon emissions and encourages the adoption of cleaner and renewable energy sources.
- Galvanizing Organic Bio-Agro Resources (GOBAR) Dhan Scheme:
- The GOBAR Dhan scheme plays a vital role in promoting sustainable agriculture and reducing pollution.
- It involves the conversion of cattle dung and other organic waste into compost, biogas, and biofuels.
- The scheme has led to the establishment of over 500 functional biogas plants, creating rural livelihood opportunities and ensuring improved sanitation.
- Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme:
- Launched in 2018, the SATAT Scheme is a crucial step towards promoting greener transportation.
- It aims to popularize Compressed BioGas (CBG) as an alternative green transportation fuel.
- The scheme accelerates the development of infrastructure for the production, storage, and distribution of CBG, further supporting the bioenergy sector’s growth
- Industry-Led Resource Efficiency and Circular Economy Coalition:
- Industries play a pivotal role in advancing resource efficiency and circular economy practices.
- India’s vision of an industry-led coalition aims to foster technological collaboration, build advanced capabilities across sectors, mobilize de-risked finance, and encourage proactive private sector engagement.
The role of the G-20 in promoting a circular bioeconomy
- Policy Coherence and Harmonization: By aligning policies related to bio-based products, waste management, and sustainable agriculture, the G-20 can promote consistent practices globally.
- Knowledge Sharing and Best Practices: Members can learn from successful initiatives in other countries, accelerating the adoption of sustainable practices and technologies.
- Technology Transfer: The G-20 can facilitate technology transfer between advanced and developing economies, enabling the adoption of advanced bio-based technologies in countries with fewer resources.
- Collaboration with International Organizations: The G-20 can collaborate with international organizations like the UN and OECD to align circular bioeconomy strategies with broader global development goals, such as the SDGs.
- Circular Agriculture and Food Systems: The G-20 can promote sustainable agricultural practices, such as agroecology and regenerative agriculture, to enhance food security, preserve biodiversity, and reduce agricultural waste
Conclusion
- Global platforms like the G-20 are instrumental in addressing critical challenges and finding sustainable solutions through collaborative efforts. By prioritizing circularity in the steel sector, implementing effective EPR policies, fostering a circular bioeconomy, and forming industry-led coalitions, India sets a commendable example for other nations to follow in the journey towards a greener and more sustainable world.
Also read:
E-waste sector and Gender Justice
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From UPSC perspective, the following things are important :
Prelims level: POCSO Act
Mains level: Recent high court orders related to consent and the age of consent, issues, impact and measures
What’s the news?
- The recent High Court decisions have brought to the forefront the complexities surrounding consent and the age of consent under POCSO.
Central Idea
- In recent months, several High Courts have either quashed FIRs or acquitted accused persons under the Protection of Children from Sexual Offences (POCSO) Act, 2012, citing consensual sex as the reason. These decisions raise critical questions about the interpretation of consent and the age of consent, necessitating a thorough examination to ensure the best interests of the child.
Defining consent and the age of consent
- Consent:
- In the context of sexual relationships, consent is an explicit and voluntary agreement between individuals to engage in sexual activity. It must be given without any form of coercion, manipulation, or pressure.
- The concept of consent is crucial in promoting healthy and respectful relationships and preventing sexual misconduct.
- Age of Consent:
- The age of consent is a legal designation that specifies the minimum age at which an individual is considered capable of providing informed and lawful consent to engage in sexual activities.
- In the case of the Protection of Children from Sexual Offences (POCSO) Act, 2012, a child is defined as any person below the age of 18 years.
- Acts of penetrative sexual assault committed on children are considered criminal offenses under this act, regardless of their consent.
Recent High Court decisions regarding cases related to the POCSO Act
- Delhi High Court (July 12): The court granted bail to a 25-year-old accused, reasoning that the 15-year-old girl had eloped with him on her own and did not support the prosecution’s claim of sexual assault.
- Bombay High Court (July 10): The court quashed the conviction of a 25-year-old man under POCSO, stating that he had engaged in consensual sex with a 17-year-old girl. The girl had terminated her pregnancy after the accused was arrested.
- Madras High Court (July 7): The court quashed an FIR registered under POCSO and all related criminal proceedings. Furthermore, it directed the Director General of Police to produce reports of all such pending cases before the Court.
- Madhya Pradesh High Court (June 27): The court quashed an FIR registered under POCSO and all criminal proceedings, stating that the sexual relationship was consensual. The judgment did not mention the age of the accused, who happened to be the coach of the victim. Additionally, the Court recommended that the Indian government consider reducing the age of consent of the prosecutrix from 18 to 16 years.
Challenges and concerns over the recent High Court decisions
- Interpretation of Consent: One of the significant challenges lies in the interpretation of consent in cases involving minors. While the age of consent is legally defined as 18 years in India under POCSO, some High Courts acquitted accused individuals based on the premise of consensual sex, even when the victims were below the age of 18.
- Age Disparity: In some of the cases, there was a considerable age difference between the prosecutrix (the victim) and the accused. Despite this age disparity, the courts did not take it into account while delivering their judgments.
- Deterrence Factor: The harsh minimum imprisonment terms under POCSO for sexual offenses against minors, such as 10 years and 20 years for penetrative sexual assault and aggravated penetrative sexual assault, respectively, may have influenced the reluctance of courts to convict accused individuals in consensual sex cases.
- Legal Presumption: POCSO includes a mandatory legal presumption in favor of the victims. However, in some of the recent judgments, the High Courts did not consider this presumption, leading to questions about the application of the law in protecting the interests of the child victims.
- Child Welfare: The primary objective of POCSO is to safeguard children from sexual offenses, irrespective of consent. The recent decisions have sparked debates about whether these judgments truly serve the best interests of the child, or if they may unintentionally undermine the protective intent of the law.
- Need for Judicial Consistency: Inconsistencies in judgments by different High Courts create uncertainty in the legal system. Ensuring consistency in interpreting the law is essential for upholding the ‘Best Interests of the Child’ and maintaining public trust in the justice system.
Role of the Supreme Court in resolving the discrepancies
- As reducing the age of consent falls under the jurisdiction of Parliament, the Supreme Court must play a crucial role in resolving the discrepancies between the laid-down law and the various interpretations by different High Courts.
- This is particularly relevant given the Supreme Court’s previous judgment in Independent Thought v. Union of India (2017) wherein it held that even sexual intercourse with a minor wife is rape
Steps to address these gaps quickly
- Analyze Cases: The Bureau of Police Research and Development should analyze cases of consensual sex, age-wise, across different states. This analysis can help the Central government make informed decisions regarding the age of consent and its potential reduction.
- Reduce Harsh Minimum Imprisonment: The minimum imprisonment terms for sexual offenses under POCSO should be re-evaluated. Instead of acting as a benefit to the accused, the punishment should act as a deterrent and ensure justice for child victims.
- Judicial Leeway in Age of Consent: Consider granting some leeway to the judiciary in interpreting consent in cases where the victim is of lower age based on the child’s understanding of consequences. This would allow for a more nuanced approach to cases involving minors.
- Uphold the Best Interest of the Child: The ‘Best Interests of the Child’ principle should be a guiding factor in all decisions related to POCSO cases. The welfare and well-being of the child victims should be the paramount consideration.
- Supreme Court Intervention: The Supreme Court must intervene promptly to address the gap between the laid down law and the different interpretations by the High Courts. Its role is crucial in ensuring consistency and uniformity in the application of the law.
- Legislative Review: The Parliament should consider reviewing the age of consent in light of the recent High Court decisions and expert analyses. Any potential reduction in the age of consent should be done thoughtfully, with the ‘Best Interests of the Child’ as the primary concern.
- Public Awareness: Launch public awareness campaigns to educate the public about the importance of protecting children from sexual offenses and the legal rights of child victims.
- Specialized Training: Provide specialized training to judges, prosecutors, and lawyers on child protection laws and the Best Interests of the Child principle to enhance their understanding of the unique needs and vulnerabilities of child victims
Conclusion
- Striking a balance between protecting children from sexual assault and considering their understanding of consent is essential. It is imperative for the Supreme Court and the legislature to address this issue promptly to ensure the welfare and safety of children across the country.
Also read:
Reviewing the Age of Consent Under POCSO Act
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Present status of forests in India, Forest Conservation Amendment Bill, 2023, key provisions
Mains level: Importance of preserving forests, Forest Conservation Amendment Bill, 2023,concerns and way forward
What’s the news?
- Recently, a Joint Parliamentary Committee (JPC) gave its endorsement to the Forest (Conservation) Amendment Bill, which seeks to amend the Forest (Conservation) Act, 1980. The proposed amendments have attracted objections and controversy, raising concerns.
Central idea
- Since the early 1970s, growing awareness of the environmental damage caused by human activities has led to an understanding of its impact on our lives. Disastrous events, such as wildfires, extreme weather conditions and the loss of biodiversity, have adversely affected billions of people worldwide. In response, numerous multilateral environmental agreements and policies have been established to reverse these trends.
What is the Forest (Conservation) Amendment Bill, 2023?
- The Forest (Conservation) Amendment Bill is a proposed legislation aimed at amending the Forest Conservation Act of 1980 in India.
- The proposed amendments seek to address certain issues and introduce changes to enhance forest conservation efforts and promote sustainable development.
Background: Forest Conservation Act, 1980
- The Forest Conservation Act, 1980, was enacted to protect the country’s forests and empower the central government to regulate the extraction of forest resources, including timber, bamboo, coal, and minerals, by industries and forest-dwelling communities.
- Prior to the implementation of the Forest Conservation Act, extensive deforestation and diversion of forest land for non-forestry purposes were prevalent.
- From 1951 to 1975, approximately four million hectares of forest land were diverted. However, since the Act came into effect, from 1980 to 2023, only around one million hectares have been diverted.
Analysis: Proposed Amendments and Their Implications
- Reclassification of Forest Areas:
- The proposed amendment restricts the Forest Conservation Act’s application to only areas officially declared as forest after October 25, 1980, which may invalidate the expansive interpretation provided by the Supreme Court’s 1996 judgment.
- Potentially, this could lead to thousands of square kilometers of forests losing legal protection, putting 27.62 percent of India’s forest cover at risk.
- Exemptions for Projects Near Border Areas and Security Purposes:
- The amendment proposes to eliminate the requirement of forest clearances for security-related infrastructure within 100 km of international borders.
- While national security is important, ecological security plays an equally critical role in safeguarding citizens’ well-being. Fast-tracking without environmental appraisal could lead to irreversible damage to ecologically significant ecosystems in these regions.
- Exemptions for Zoos, Safari Parks, and Ecotourism Activities:
- Granting exemptions for zoos, safari parks, and ecotourism activities may result in the destruction of natural ecosystems, which are vital in buffering against climate change-induced weather patterns.
- Instead, conservation centers should be established away from forested areas, and ecotourism projects should undergo thorough environmental assessments to prevent adverse impacts.
- Disempowering Local Communities:
- The proposal to exempt a vast number of projects from the clearance process would deprive forest-dwelling communities of their right to be consulted.
- The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, mandates obtaining free, prior, and informed consent from local communities through gram sabhas.
- By bypassing this process, the proposed amendment undermines the rights of forest-dwelling tribal people and others.
Challenges in forest conservation in India
- Inadequate Forest Cover: With only 21 percent of India’s land area having forest cover and a mere 12.37 percent being intact natural forest, meeting the target of 33 percent forest cover poses a significant challenge.
- Decline in Northeastern Forests: The northeastern states, known for their biodiversity richness, have experienced a net decline of 3,199 sq km of forest cover from 2009 to 2019, further exacerbating the forest conservation challenge.
Why should protecting India’s forests be a part of national security?
- Ecological Security: Forests play a crucial role in maintaining ecological balance and stability, providing essential ecosystem services like carbon sequestration, water regulation, and biodiversity conservation.
- Climate Change Mitigation: By safeguarding forests, India can contribute significantly to global efforts in mitigating climate change and reducing greenhouse gas emissions.
- Water Security: Forests act as natural watersheds, regulating water flow and ensuring the replenishment of groundwater, thereby securing a sustainable water supply.
- Biodiversity Conservation: Protecting forests is vital for maintaining ecological resilience and preserving unique plant and animal species.
- Livelihoods and Food Security: Millions of people, especially tribal communities, depend on forests for their livelihoods, food, and cultural practices.
- Prevention of Conflict: Protecting forests near international borders can help prevent conflicts related to resource disputes and cross-border activities.
- National Economy and Resources: Forests contribute significantly to the national economy through industries like timber and non-timber forest products.
- Health and Well-being: Access to green spaces and forests promotes healthier lifestyles and reduces stress, benefiting public health.
Way forward: key steps and strategies to consider
- Strengthen Implementation of Existing Laws: Rather than introducing new amendments, focus on enhancing the implementation of existing laws, such as the Forest Act, 1980, and the Scheduled Tribes and Other Traditional Forest Dwellers Act, 2006. Effective enforcement and monitoring of these laws can lead to better protection of forests and the rights of local communities.
- Maintain a Broader Interpretation of Forest: Uphold the Supreme Court’s interpretation of forest as encompassing all forests, regardless of official declarations. This will ensure the continued legal protection of ecologically sensitive areas, preventing the loss of forests due to reclassification.
- Preserve Ecologically Important Areas: Avoid exempting projects near border areas and for security purposes from forest clearances, especially in ecologically significant regions like the northeastern states. Maintain a balance between national security concerns and ecological security.
- Review Exemptions for Development Projects: Reassess the exemptions for zoos, safari parks, and ecotourism activities. Develop guidelines and criteria for ecotourism projects that prioritize environmental conservation and minimize negative impacts.
- Ensure Transparent Decision-Making: Eliminate the provision allowing the central government to exempt clearances for any other purposes to avoid potential misuse, and ensure transparent and accountable decision-making in all projects.
- Empower Local Communities: Uphold the rights of forest-dwelling communities by actively involving them in decision-making processes. Obtain free, prior, and informed consent through gram sabhas before implementing any projects on forest lands.
- Raise Public Awareness: Educate the public about the importance of forests, biodiversity, and environmental conservation. Create awareness campaigns to garner public support for sustainable forest management and protection.
- Research and Science-Based Conservation: Support scientific research on forest ecosystems and their functions. Utilize scientific evidence to inform conservation policies and strategies.
Conclusion
- While the preamble of the Forest Conservation Amendment Bill, 2023, outlines commendable goals, the proposed amendments themselves appear to contradict these objectives. It is essential to prioritize environmental protection and consider the long-term consequences of such amendments on India’s natural ecosystems and the well-being of its citizens. To safeguard our environment for future generations, it is crucial to avoid any changes that weaken existing protective measures.
Also read:
Wildlife (Protection) Amendment Bill and the Forests rights
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Concepts of gig economy, gig workers and Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill,
Mains level: Gig economy, Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, significance, concerns a way forward
What’s the news?
- The Rajasthan Assembly on Monday passed the Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, without a debate amid uproar by the opposition members in the House.
Central Idea
- The Rajasthan government has taken a significant stride towards safeguarding the interests of gig workers with the passage of the Rajasthan Gig Workers Bill, 2023. This groundbreaking legislation, the first of its kind, seeks to establish a Welfare Board and a dedicated welfare fund, ensuring social security measures for platform-based gig workers in the state.
Definition of gig Workers?
- The bill defines gig workers as individuals who perform work or participate in work arrangements outside the traditional employer-employee relationship. These workers earn from such activities and typically work on a contract that outlines specific terms and conditions, including piece-rate work.
- Gig workers are often associated with the gig economy, which is characterized by a flexible and on-demand labor market. They may work in various sectors, including ride-hailing, food delivery, online freelancing, home services, and other platform-based services.
Key features of the bill
- Applicability: The bill applies to both aggregators, which are digital intermediaries connecting buyers and sellers, and primary employers, encompassing individuals or organizations that engage platform-based workers.
- Formation of Welfare Board: A crucial aspect of the legislation is the establishment of a Welfare Board, chaired by the minister in charge of the Labour Department. The Board will consist of nominated members, with at least one-third representing women. It will be responsible for overseeing and implementing welfare measures for platform-based gig workers in the state.
- Registration and Unique ID: The Welfare Board will ensure the registration of both platform-based gig workers and aggregators operating within the state. Each gig worker will receive a Unique ID applicable across all platforms, streamlining access to various welfare schemes and benefits.
- Social Security and Welfare Fund: To support registered gig workers, the state government will create The Rajasthan Platform Based Gig Workers Social Security and Welfare Fund. This dedicated fund will be utilized to provide social security benefits to gig workers, enhancing their financial protection.
- Welfare Fee Deduction Mechanism: Aggregators will be responsible for contributing to the welfare fund by deducting a welfare fee from each transaction related to platform-based gig workers. The fee will be based on a percentage of the transaction value, ensuring a sustainable funding mechanism for gig workers welfare.
- Access to Social Security Benefits: The Bill guarantees gig workers access to various social security benefits formulated by the state government. These benefits are intended to offer financial protection and support to gig workers during times of need, such as accidental insurance and health insurance.
- Grievance Redressal Mechanism: Gig workers will have the right to present grievances related to entitlements, payments, and benefits offered under the Act. A robust grievance redressal mechanism will be put in place to address these concerns and ensure timely resolutions.
- Representation in Decision-Making: Gig workers will have a voice in decisions impacting their welfare through representation on the Welfare Board. This provision ensures that the interests of gig workers are taken into account when formulating policies and programs.
- Compliance and Fines: Aggregators are mandated to comply with the provisions of the Act and the rules set forth by the Welfare Board. Failure to adhere to these regulations may lead to fines imposed by the state government. For the first contravention, a fine of up to Rs 5 lakh may be imposed, and for subsequent contraventions, the fine may extend up to Rs 50 lakh.
Concerns raised over the bill
- Vague Terminologies: Labor unions have objected to the use of vague terminologies in the bill, fearing that they may create loopholes for companies and aggregators. The lack of clarity in definitions and language could potentially weaken the protection provided to gig workers.
- Funding Mechanism: Labor unions have expressed concerns about gig workers being required to contribute to the welfare fund. They argue that the funding burden should primarily fall on aggregator companies and State funds due to the fluctuating and inadequate nature of gig workers’ pay.
- Scope of Social Security Benefits: The bill’s limited mention of social security benefits, primarily focusing on accidental insurance and health insurance, has been criticized. Labor unions recommend a comprehensive list of benefits to ensure adequate coverage for gig workers.
- Grievance Redressal Mechanism: Concerns have been raised about the effectiveness and responsiveness of the grievance redressal mechanism outlined in the bill. Reports of ineffective redressal mechanisms for gig workers have raised doubts about their efficacy.
- Definition of Gig Workers: Some stakeholders have questioned the scope of the bill’s definition of gig workers, as there may be other forms of gig workers not covered under the defined criteria.
- Rights Recognition: While the bill improves on the eligibility criteria compared to existing labor laws, critics argue that gig workers may not be fully recognized as employees entitled to certain labor rights.
- Implementation Challenges: The successful implementation of the bill relies on the effectiveness of the Welfare Board and State government in ensuring seamless registration, representation, and benefit distribution to gig workers.
Way forward
- Addressing Concerns: Hold consultations with labor unions and stakeholders to clarify ambiguous terms and ensure a more equitable funding mechanism for the welfare fund.
- Comprehensive Social Security Benefits: Expand benefits to include disability coverage, maternity benefits, and retirement benefits, in addition to accidental and health insurance.
- Strengthening Grievance Redressal: Establish a responsive mechanism for prompt resolution of disputes between gig workers and aggregators.
- Empowering the Welfare Board: Provide adequate resources and authority to the Welfare Board for effective implementation and decision-making.
- Periodic Review and Feedback: Conduct regular evaluations to assess the bill’s impact and seek feedback from gig workers, labor unions, and aggregators.
- Awareness and Outreach: Organize awareness campaigns to educate gig workers about their rights and entitlements.
- Transparent Implementation: Ensure transparency in registration, benefit distribution, and fund utilization.
- Collaborative Approach: Foster collaboration among government departments, labor unions, aggregators, and gig worker representatives for an inclusive framework.
Conclusion
- The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, sets a notable precedent for acknowledging the significance of gig workers and their rights in the Indian workforce. While the legislation addresses various aspects related to the welfare and social security of gig workers, there remains room for refinement and further expansion of benefits to ensure their overall well-being and empowerment.
Also read:
Rajasthan minimum income Bill: provisions, what makes it unique
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ethanol-blended petrol and its benefits
Mains level: India's ethanol-blended petrol program, advantages and way forward
What’s the news?
- The Prime Minister, Narendra Modi, has recently announced an ambitious plan to achieve 20% ethanol-blended petrol nationwide by 2025.
Central idea
- India’s ethanol production program has witnessed significant strides in the last five years, with both increased quantities supplied to oil marketing companies (OMCs) and a shift towards diverse raw materials, including rice, damaged grains, maize, and millets. Ethanol, a 99.9% pure alcohol blendable with petrol, has seen a remarkable transformation in its sourcing, production, and utilization.
What is Ethanol?
- Ethanol, also known as ethyl alcohol or grain alcohol, is a clear, colorless, and flammable liquid. It is a type of alcohol with the chemical formula C2H5OH.
- Ethanol is one of the most common types of alcohol and is produced through the fermentation of sugars by yeast or other microorganisms.
Applications of Ethanol
- Ethanol is a key component in alcoholic beverages
- Ethanol is now heavily used as a biofuel or an additive to gasoline, creating a blend known as ethanol-blended petrol or gasohol
- Ethanol is used in various industrial processes, including in the production of solvents, cleaning agents, pharmaceuticals, personal care products, and chemicals
- Its ability to kill bacteria and viruses makes it a valuable ingredient in antiseptics and hand sanitizers
- Ethanol is utilized in food processing for various purposes, including as a preservative, flavor enhancer, and food-grade solvent
An overview: Evolution of India’s ethanol production
- Traditional Feedstocks: Until 2017-18, ethanol production in India relied mainly on ‘C-heavy’ molasses, a by-product of sugar production. Sugar mills produced ethanol from molasses with a sugar content of 40-45%, yielding 220–225 liters of ethanol per tonne.
- Policy Changes: In 2018-19, the Indian government introduced a differential pricing policy to incentivize the use of alternative feedstocks for ethanol production. Higher prices were fixed for ethanol produced from B-heavy molasses and sugarcane juice, compensating mills for reduced sugar production.
- Feedstocks Diversification: Apart from molasses and sugarcane juice, ethanol production expanded to include rice, damaged grains, maize, jowar (sorghum), and other millets. Ethanol yields from grains were found to be higher than from molasses.
- Year-Round Production: Leading sugar companies invested in modern distilleries equipped to operate on multiple feedstocks throughout the year. This flexibility allowed distilleries to switch between B-heavy molasses during the crushing season and grains during the off-season, ensuring continuous ethanol production.
- Increase in Ethanol Blending: The government’s policy and the adoption of diverse feedstocks led to a significant boost in ethanol production and blending with petrol. The all-India average blending of ethanol with petrol increased from 1.6% in 2013-14 to 11.75% in 2022-23.
- Environmental Sustainability: Distilleries implemented modern techniques like the multi-effect evaporator (MEE) units to treat liquid effluents (spent wash), reducing pollution.
- Promoting Green Energy: The evolution of ethanol production in India aligns with the country’s goal of reducing reliance on fossil fuels and promoting renewable and green energy sources
Advantages of India’s ethanol production program
- Ethanol production reduces India’s reliance on imported fossil fuels, enhancing the country’s energy security and reducing vulnerability to fluctuating global oil prices.
- Blending ethanol with petrol lowers carbon emissions. This helps combat climate change and improve air quality.
- Ethanol production from various feedstocks supports agricultural diversification and provides additional income sources for farmers, benefiting the rural economy.
- The program utilizes agricultural byproducts and residues to produce ethanol, promoting efficient resource utilization and reducing waste.
- The ethanol production program creates job opportunities in rural areas, particularly near sugar mills and distilleries, contributing to rural economic growth.
- Ethanol production aligns with India’s renewable energy goals, contributing to the country’s commitment to sustainable development.
Byproducts of ethanol production
- Spent Wash:
- During alcohol production, liquid effluent known as spent wash is generated. Spent wash is a byproduct that can pose serious environmental problems if discharged without proper treatment.
- It contains residual sugars and other substances from the fermentation process, making it a high-strength organic wastewater.
- DDGS (Distillers’ Dried Grain with Solubles):
- DDGS is a byproduct of grain-based distilleries.
- After the liquid from the spent wash is separated, the remaining solid material undergoes a drying process, resulting in distillers’ dried grain with solubles (DDGS).
How byproducts of ethanol production can be beneficial?
- Concentrating the spent wash reduces its volume, and using it as a boiler fuel along with bagasse offers a sustainable energy source, minimizing the need for fossil fuels and reducing greenhouse gas emissions.
- The ash resulting from the incineration of the concentrated spent wash contains up to 28% potash. This potash can be used as fertilizer, promoting soil health and supporting agricultural sustainability.
- Byproduct utilization in the form of DDGS as animal feed optimizes resource utilization and minimizes waste.
- The conversion of spent wash and wet cake into useful products reduces waste generation.
- The byproduct utilization exemplifies the principles of a circular economy where waste is minimized, and resources are recycled and reused.
Way forward
- India should continue to diversify its feedstocks for ethanol production, including cane molasses, direct sugarcane juice, rice, damaged grains, maize, jowar, bajra, and other millets.
- States like Uttar Pradesh, a major sugarcane grower, can contribute significantly to ethanol production from cane and molasses, while Bihar, known for maize cultivation, can play a crucial role in utilizing maize for ethanol.
- Emphasize research to optimize the conversion of maize and other grains into ethanol, reducing the process duration and enhancing overall productivity.
- Build new distilleries and upgrade existing ones
- Provide stable and long-term policy support, including differential pricing, tax incentives, and mandates for ethanol blending with petrol, tailored to the specific characteristics of different feedstocks.
- Gradually increase the blending percentage of ethanol with petrol
- Explore opportunities for international collaboration in ethanol production and blending
Conclusion
- The move towards a 20% ethanol-blended petrol by 2025 demonstrates the nation’s commitment to energy independence and a greener future. By leveraging multiple feedstocks and adopting sustainable practices, the ethanol industry can continue to play a vital role in India’s journey towards a cleaner and more self-reliant energy landscape.
Also read:
Global Biofuel Alliance can power India’s energy transition drive, but must have time-bound targets
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