Note4Students
From UPSC perspective, the following things are important :
Prelims level: Blue economy overview, Matsya Sampada Yojana and other such initiatives
Mains level: Blue economy, India's fisheries sector
Central Idea
- The neglect of the fishing industry by India and Sri Lanka has resulted in an ongoing dispute over fishing rights in the Palk Strait. Developing the fishing industry could help resolve the conflict and boost the economies of both countries.
What is Blue Economy?
- Origin of the concept: Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
- A project to find best nature inspired and sustainable technologies: Blue Economy began as a project to find 100 of the best nature-inspired technologies that could affect the economies of the world. While sustainably providing basic human needs potable water, food, jobs, and habitable shelter.
- Inclusive approach and objective: This is envisaged as the integration of Ocean Economy development with the principles of social inclusion, environmental sustainability and innovative, dynamic business models
- Environment friendly maritime infrastructure: It is creation of environment-friendly infrastructure in ocean, because larger cargo consignments can move directly from the mothership to the hinterland through inland waterways, obviating the need for trucks or railways
Indo-Sri Lankan dispute over fishing rights in Palk Strait
- Maritime boundary agreement: The maritime boundary agreements signed in 1974 and 1976 allowed fishermen of both nations to fish in each other’s waters as they traditionally did.
- Absence of physical demarcation: Lack of physical demarcation of maritime boundaries resulted in Indian fishermen encroaching into Sri Lankan waters during the civil war.
- Rising conflicts: The Sri Lankan fishing community sought to reclaim their rights after the end of hostilities, leading to conflict with Indian fishers. Sri Lankan Navy’s intervention has resulted in arrests and even fatal shootings of Indian fishermen.
Neglect of the fishing industry by India and Sri Lanka
- India’s marine fishery: India’s marine fishery has been dominated by the artisanal sector, which can afford only small sailboats or canoes to fish for subsistence.
- Lack of investment: India’s fisheries are being transformed into a commercial enterprise, but lack of investment in a deepwater fleet results in most fishing taking place in coastal waters, leading to competition with neighboring countries.
- Underexploited resources: Rich resources in India’s Exclusive Economic Zone remain underexploited, with much of the catch from India’s fishing grounds taken away by better-equipped fishing fleets of other Indo-Pacific countries indulging in illegal, unregulated, and unreported fishing.
- Growing tensions: Neglect of the fishing industry has resulted in dwindling fish stocks, rising fuel costs, and growing tensions between India and Sri Lanka.
Development of the fishing industry
- China: China has mobilized its fishing industry to meet rising demand for protein in the Chinese diet and is now a fishery superpower.
- India: India needs to invest in a deepwater fleet to exploit rich fishing grounds in its Exclusive Economic Zone and compete with other countries in the Indo-Pacific region.
- India must focus on modernisation: India should focus on mechanization and modernization of fishing vessels, developing deep-water fishing fleets, building a DWF fleet around the mother ship concept, and developing modern fishing harbours.
- PM Matsya Sampada Yojana is a scheme launched by the Government of India in 2020, with the aim of boosting the fisheries sector in the country. The scheme has a total outlay of Rs. 20,050 crores and is implemented over a period of five years from 2020-21 to 2024-25. The scheme is focused on four key areas of intervention, which include:
- Development of infrastructure and modernization of the fisheries sector: This involves the creation of new fishing harbours, fish landing centres, cold chain facilities, and other related infrastructure.
- Fisheries management and regulatory framework: This involves strengthening the regulatory framework for fisheries and aquaculture, promoting sustainable fishing practices, and conserving marine biodiversity.
- Fisheries post-harvest operations and value chain: This involves promoting the processing and value addition of fish and fishery products, and improving market access for fishermen and fish farmers.
- Aquaculture development: This involves promoting the development of inland fisheries and aquaculture, including the creation of new fish farms, and supporting the adoption of modern technologies for fish farming.
Conclusion
- Neglect of the fishing industry by India and Sri Lanka has resulted in an ongoing dispute over fishing rights in the Palk Strait. Developing the fishing industry could help resolve the conflict and boost the economies of both countries. The government’s Pradhan Mantri Matsya Sampada Yojana could be used to form an Indo-Sri Lankan Fishing Corporation to provide a huge boost to the fishing industries of both nations and remove an unwanted irritant in bilateral relations.
Mains Question
Q. It is said that fishing industry has been overly neglected by India and Sri Lanka. Development of the fishing industry is crucial to boost the economy for both the countries. Discuss.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Innovations In AI and tools
Mains level: AI's diverse potential and its application for better governance
Central Idea
- Artificial Intelligence (AI) has gained worldwide attention, and many mature democracies are using it for better legislative procedures. In India, AI can be used to assist parliamentarians in preparing responses for legislators, enhancing research quality, and obtaining information about any Bill, legislative drafting, amendments, interventions, and more. However, before AI can work in India, there is a need to codify the country’s laws, which are opaque, complex, and face a huge translation gap between law-making, law-implementing, and law-interpreting organizations.
- AI is a constellation of technologies that enable machines to act with higher levels of intelligence and emulate the human capabilities of sense, comprehend and act.
- The natural language processing and inference engines can enable AI systems to analyze and understand the information collected.
- An AI system can also take action through technologies such as expert systems and inference engines or undertake actions in the physical world.
- These human-like capabilities are augmented by the ability to learn from experience and keep adapting over time.
- AI systems are finding ever-wider application to supplement these capabilities across various sectors
Need to Codify Laws
- Current laws are complex and opaque: Current laws in India pose many challenges, such as their complexity, opaqueness, and lack of a single source of truth.
- The India Code portal does not provide complete information: The India Code portal is not enough to provide complete information about parent Acts, subordinate legislation, and amendment notifications.
- AI can be used to provide comprehensive information: There is a need to make laws machine-consumable with a central law engine, which can be a single source of truth for all acts, subordinate pieces of legislation, gazettes, compliances, and regulations. AI can use this engine to provide information on applicable acts and compliances for entrepreneurs or recommend eligible welfare schemes for citizens.
Assisting Legislators
- Potential of AI for legislators: AI can help Indian parliamentarians manage constituencies with a huge population by analysing citizens’ grievances and social media responses, flagging issues that need immediate attention and assisting in seeking citizen inputs for public consultation of laws and preparing a manifesto.
- AI-powered assistance: Many Parliaments worldwide are now experimenting with AI-powered assistants.
- For instance:
- Netherlands’s Speech2Write system: The Speech2Write system in the Netherlands House of Representatives, which converts voice to text and translates voice into written reports.
- AI tools Japan: Japan’s AI tool assists in preparing responses for its legislature and helps in selecting relevant highlights in parliamentary debates.
- Brazil: Brazil has developed an AI system called Ulysses, which supports transparency and citizen participation.
- NeVA portal India: India is also innovating and working towards making parliamentary activities digital through the ‘One Nation, One Application’ and the National e-Vidhan (NeVA) portal.
Simulating Potential Effects of Laws
- Dataset modelling: AI can simulate the potential effects of laws by modelling various datasets such as the Census, data on household consumption, taxpayers, beneficiaries from various schemes, and public infrastructure.
- Flag outdated laws: In that case, AI can uncover potential outcomes of a policy and flag outdated laws that require amendment.
- For example: During the COVID-19 pandemic, ‘The Epidemic Diseases Act, 1897’ failed to address the situation when the virus overwhelmed the country. Several provisions in the Indian Penal Code (IPC) are controversial and redundant, such as Article 309 (attempted suicide) of the IPC continues to be a criminal offense. Many criminal legislation pieces enacted more than 100 years ago are of hardly any use today.
Conclusion
- The COVID-19 pandemic has given a strong thrust to the Digital India initiative, and a digitization of services needs to be kept up in the field of law, policy-making, and parliamentary activities, harnessing the power of AI. However, the use of AI must be encouraged in an open, transparent, and citizen-friendly manner, as AI is a means to an end, not an end in itself. Therefore, it is necessary to address the current challenges faced by India’s laws before AI can be effectively used to assist parliamentarians in their legislative duties.
Mains Question
Q. Artificial Intelligence (AI) has gained worldwide attention, and many mature democracies are using it for better legislative procedures. In this light evaluate the potential of AI in assisting Indian parliamentarians.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Private Space companies in news
Mains level: India's space sector and role pf private companies and startups
Central Idea
- India needs an enabling policy and regulatory environment to tap into the potential of the Second Space Age and its rapidly growing space economy.
What is mean by the Second Space Age?
- Commercialization: The Second Space Age refers to the recent era of increased commercialization and private sector involvement in space exploration, which began in the early 2000s.
- Emergence of private space companies: This period has been marked by the emergence of private space companies like SpaceX, Blue Origin, and Virgin Galactic, who are investing heavily in space technology and infrastructure.
- Today’s space domain has many more actors once dominated by US and USSR: Compared to the First Space Age dominated by the US and the USSR, today’s space domain has many more actors, with a majority being private companies. Private companies account for 90% of global space launches since 2020, and India is no exception
- Increasing involvement of non-spacefaring nations: The Second Space Age is also characterized by the increasing involvement of non-spacefaring nations in space exploration and the development of technologies that enable greater access to space for both commercial and scientific purposes.
- Exploration: The hope is that this new era will lead to breakthroughs in areas like space tourism, asteroid mining, and Mars colonization, among others.
- India’s journey in space began modestly in the 1960s.
- Societal objectives: Over the decades, the Indian Space Research Organisation (ISRO) prioritized societal objectives and benefits, such as developing satellite technology for mass communication, remote sensing for weather forecasting, resource mapping of forests, agricultural yields, groundwater and watersheds, fisheries and urban management, and satellite-aided navigation.
- Enhanced launch capabilities: ISRO also developed satellite launch capabilities, beginning with the SLV-1 in the 1980s, followed by the PSLV series, which has become its workhorse with over 50 successful launches.
Facts for prelims
| Steps taken to promote the space industry in India |
Resulting Outcome
|
| Creation of Indian Space Research Organisation (ISRO) in 1969 |
Establishment of a strong foundation for space research and exploration in India |
| Launch of Aryabhata satellite in 1975 |
First satellite successfully launched by India |
| Establishment of the Vikram Sarabhai Space Centre (VSSC) in 1972 |
Development of technologies for rocket and satellite launch |
| Launch of Rohini satellite in 1983 |
First satellite launched using an Indian-made launch vehicle |
| Launch of Polar Satellite Launch Vehicle (PSLV) in 1993 |
Capability to launch smaller satellites into orbit |
| Launch of Geosynchronous Satellite Launch Vehicle (GSLV) in 2001 |
Capability to launch larger and heavier satellites into orbit |
| Successful Mars Orbiter Mission (MOM) in 2014 |
India became the first country to successfully launch a spacecraft to Mars in its first attempt |
| Formation of NewSpace India Limited (NSIL) in 2019 |
Increased involvement of private sector in space activities and commercialization of space technologies |
| Announcement of Gaganyaan mission in 2018 |
Development of human spaceflight capabilities in India |
India’s Space Potential
- Economy and employment: India’s space economy, estimated at $9.6 billion in 2020, is expected to be $13 billion by 2025. However, with an enabling policy and regulatory environment, the Indian space industry could exceed $60 billion by 2030, directly creating more than two lakh jobs.
- Downstream activities: Downstream activities such as satellite services and associated ground segment are dominant, accounting for over 70% of India’s space economy.
- Media and entertainment segment: Media and entertainment account for 26% of India’s space economy, with consumer and retail services accounting for another 21%.
The Growing Role of the Private Sector
- Increasing space start ups: The Indian private sector is responding to the demands of the Second Space Age, with over 100 space start-ups today. From less than $3 million in 2018, investment in the sector has doubled in 2019 and crossed $65 million in 2021.
- Potential of multiplier effect on economy: The sector is poised for take-off, as a transformative growth multiplier like the IT industry did for the national economy in the 1990s.
Way ahead: Creating an Enabling Environment
- ISRO needs to focus on research and collaborate with the Indian private sector, which has different needs and demands.
- To create an enabling environment for the private sector, India needs a space activity act that provides legal grounding, sets up a regulatory authority, and enables venture capital funding into the Indian space start-up industry.
- Although a series of policy papers have been circulated in recent years, legislation is needed to provide legal backing and create an enabling environment for private sector growth.
Conclusion
- India’s space industry has enormous potential, but realizing it requires an enabling policy and regulatory environment that encourages private sector growth. With a space activity act that provides legal backing, sets up a regulatory authority, and enables venture capital funding, India can take advantage of the Second Space Age and become a major player in the global space economy.
Mains Question
Q. What do you understand by mean Second Space Age? Highlight potential of India’s space industry and growing role of private sector
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PLFS and NSO data
Mains level: Poverty trends and estimates and issues
Central Idea
- The claim of poverty reduction in India during the pandemic year of 2020-21 is contested due to discrepancies in data and survey design. The PLFS data is used to make this claim, and there are recent papers that have come up with divergent claims on trends in poverty, showing both a rapid decline in poverty as well as a sharp increase.
Use of Comparable Estimates
- Poverty estimates in India have always been based on consumption estimates from the NSO, particularly based on the consumption expenditure surveys (CES).
- The last official poverty estimates were for 2011-12, even though a comparable consumption survey was conducted in 2017-18.
What is Periodic Labour Force Survey (PLFS)?
- PLFS is a large-scale household survey conducted by the National Statistical Office (NSO) of India.
- It collects data on various aspects of the labour force in India, including employment, unemployment, and labour force participation rates. In addition to these labour force indicators, the PLFS also collects data on consumption expenditure, which can be used to estimate poverty levels.
Issue with PLFS Data
- Estimates are not comparable: The PLFS estimates of poverty are not comparable with those from the CES, as the PLFS estimates are based on a single question.
- Consumption estimates: The issue of sensitivity of consumption estimates to survey design, the level of aggregation and details has been extensively written about and was at the heart of the Great Indian Poverty Debate of the early 2000s.
- Details about consumption expenditure is not just relevant: The sensitivity to the details of questions asked to collect consumption expenditure is not just relevant across different surveys but also across different rounds of the PLFS.
Poverty Trends
- The first set of conclusions can be drawn for the period between 2011-12 and 2017-18.
- Using the CES based full schedule and the leaked report for 2017-18, a rise in poverty can be seen.
- For a similar time period, the single question asked in the earlier rounds of PLFS can be compared with the 2014-15 (72nd round) NSO survey on services and durable goods expenditure which had exactly the same question in the same block with the same instructions making them comparable to estimates from the PLFS from 2017-18 to 2019-20.
- These suggest that the poverty headcount ratio was 27 per cent in 2014-15 and rose to 36 per cent in 2017-18, declining to 32 per cent in 2018-19 and remaining at that level in 2019-20.
- Unfortunately, for the period during the pandemic (2019-20 to 2020-21) that the PM paper tries to address, it is difficult to say what happened based on available consumption data because of the questionnaire changes mentioned above.
Impact on Policy
- The absence of official estimates on poverty is also a reflection of the lack of political priority of the government on such a crucial indicator.
- Currently, a survey on consumption expenditure is being canvassed by the NSO which again follows a completely new methodology and schedule. While it may provide another set of estimates of consumption expenditure, it is unlikely to help resolve the poverty debate.
Conclusion
- The issue of what happened to poverty after 2011-12 is crucial for policy. However, frequent interference in the statistical system through changes in survey and questionnaire design, suppression of data, and delaying the release of crucial data are making it difficult to have a correct assessment of reality. The absence of official estimates on poverty is a reflection of the lack of political priority of the government on such a crucial indicator.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Role of compassion in healthcare
Central Idea
- India’s rapid strides in health and healthcare with the help of a digital boom and the Ayushman Bharat Digital Mission, and the need for compassionate leadership to ensure respectful healthcare.
India’s healthcare sector
- India’s healthcare sector has shown improvement in multiple metrics due to the push for healthcare digitization, infrastructure, coverage, and other inputs.
- However, healthcare is not just about the treatment of diseases or the availability of infrastructure but also about the overall wellness of the person.
- Respectful healthcare that is available, affordable, accessible, and compassionate is a determinant of the quality of care.
Importance of Compassionate leadership
- Respectful and compassionate healthcare is essential: Healthcare is a perpetually evolving, stressful, and high-risk industry that puts a vast burden on healthcare providers. It is essential to navigate and manage the situation compassionately to deliver respectful care.
- Compassion is a beating heart if healthcare: Compassionate leadership is required to build this type of healthcare system, as it is the quiet, beating heart of the entire healthcare system.
Curriculum for compassionate healthcare
- Compassionate curriculum is very necessary: To integrate compassion into the healthcare system at every stage, it is necessary to build a curriculum and deliver it to those responsible for administering healthcare respectfully.
- Curriculum with Dalai Lama’s vision rolled out in Bihar: An eight-stage curriculum, developed by Emory University, that furthers the Dalai Lama’s vision of educating both heart and mind for the greater good of humanity is being rolled out in Bihar.
- Impact: To date, 1,200 healthcare providers across 20 districts have been impacted by the vital components of the cognitive-based compassion training, creating compassionate leaders at every level.
Institutionalizing compassionate healthcare
- Institutionalizing will bring in real change: While the curriculum is a quantum leap towards building compassionate leadership, institutionalizing it will bring in real change.
- Adopting at each level: Every academic institution and every department mandated with the responsibility to deliver health-related learning should develop and adopt compassion-based curricula.
- Building capacity: State and regional health institutions must also be built with the capacity to deliver compassionate leadership. Partnerships with established academia and development sector organizations can enable the organizing of master coaches and master facilitators, thereby creating public goods that can be delivered by all.
Strengthening internal systems
- Making compassion intrinsic to the ethos: All healthcare providers are expected to carry out a wide range of tasks within the system, which often leads to burnout and impacts patient experience adversely. It is vital to strengthen systems internally to make respect and compassion intrinsic to the ethos.
- Building a network: Building a network of compassionate practitioners in every state, district and block hospital is crucial to fan the winds of change by starting with self-compassion first and then moving to compassion for others.
- Valuing and measuring organizational culture: Valuing and measuring organizational culture is just as critical as patient outcomes. Developing sound metrics to measure culture and employee satisfaction, self-compassion, and compassion for the team assumes greater significance to building an institution whose foundation is compassion.
Conclusion
- Respectful healthcare is already mentioned in the National Health Mission (NHM) guidelines, and such guidelines need to be the warp and weft of every policy and every guideline developed by public health authorities to improve patient experience. Compassionate leadership can truly realize India’s historically known values of compassion and bring alive the words of Hippocrates, the father of medicine, “Wherever the art of medicine is loved, there is also a love of humanity”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: China's attempts to use cartography as a weapon
Central Idea
- The Chinese leadership has been using cartographic deception as a weapon to violate the sovereign national boundaries of its neighbours, and India has been a victim of this deception since Independence. The recent rechristening of villages and areas in Arunachal Pradesh is another example of China’s cartographic deception, and India must remain vigilant against such tactics.
Background: India-China relations
- Historical context:
- India has been a victim of China’s deception since its independence.
- Mao’s Red Army sent messages to Indian Communists promising support in their violent liberation struggle to overthrow the government of Jawaharlal Nehru.
- In the early 1950s, China started staking claims to large parts of Indian territory.
- Cartographic deception used by China:
- Cartographic deception is integral to the Chinese leadership’s machinations.
- China has been indulging in cartographic deception by staking claims to large parts of Indian territory.
- The recent rechristening of villages and areas in Arunachal Pradesh by the Chinese cabinet is another example of that cartographic deception.
- Despite President Xi Jinping’s claims of standing guard over the world order based on international law, China continues to use cartography as a weapon to violate sovereign national boundaries of its neighbours.
How cartography is used as a weapon?
- Deliberate manipulation of maps: The term use of cartography as a weapon refers to the deliberate manipulation of maps for political and strategic purposes. This can involve drawing new borders or redefining existing borders, claiming territory that was previously not contested or that belonged to another country, and renaming places to support these claims.
- Psychological warfare technique: It is often accompanied by historical revisionism, propaganda, and the creation of artificial historical links to justify these claims. This approach can be seen as a form of psychological warfare, intended to create confusion, weaken the opponent’s resolve, and undermine its legitimacy in the eyes of the international community.
Historical background of Arunachal Pradesh
- No contact with China: Historically, Arunachal Pradesh had no contact with China, and there was never any Chinese presence there.
- Shimla Agreement: The McMahon Line, which became the international boundary between India and Tibet through the Shimla Agreement between the British and Tibetan governments in 1914, clearly puts Tawang, which fell south of the McMahon Line, out of Tibetan administrative control.
- Claims over Tawang: Attempts by pro-China historians to claim that parts of Western Arunachal Pradesh like Tawang were under the rule of Lhasa before 1950 are negated by historical records.
Chinese invasion of Arunachal Pradesh in 1962
- During the Chinese invasion of Arunachal Pradesh in 1962, they were extra-cordial with the locals and made special efforts to convince them about the greater racial affinity between them.
- However, despite all the deceptive maneuvers during the 49-day-long occupation, the Chinese could not win over the hearts and minds of the people of NEFA.
Conclusion
- India must remain vigilant against China’s cartographic deception, as it was through a similar deception in 1962 that China annexed territory. India has dismissed the recent rechristening exercise by China, and rightly emphasised that Arunachal Pradesh is, has been, and will always be an integral and inalienable part of India. India must continue to stand firm against China’s attempts to use cartography as a weapon to violate its sovereign national boundaries.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basic concepts
Mains level: RBI's pause on rate hikes, reasons and implications
Central Idea
- The RBI has decided to not increase the repo rate amid continuing hikes by important central banks such as the US Federal Reserve (Fed) and European Central Bank (ECB), and domestic inflation concerns. However, if incoming data point to rising inflation risks, this decision could prove to be only a pause in the rate hiking cycle.
- The RBI feels that money market rates have effectively risen more than the 250-basis-point yank in the repo rate since May 2022, and hence it decided to pause and assess the impact of rate hikes.
- The key reason behind the MPC decision is the expectation of a decline in inflation to 5.2% in the current fiscal, driven by a healthy rabi crop, normal monsoon, moderating international commodity prices, and the impact of rate hikes.
- The RBI acknowledges the upside risks and stated its readiness to fight any unexpected rise in inflation.
Impact on GDP growth
- The RBI expects GDP growth to slow to 6% from 7% this fiscal as slowing global growth, domestic interest rates, and messy geopolitics bite.
- Slowing global growth will be net negative for India’s exports, and the growing dependence on commodity exports makes India more vulnerable to global growth volatility.
- Fiscal 2024 will, therefore, test the resilience of India’s domestic demand amid rising interest rates.
Reasons for the expected cooling of consumer inflation
- Fuel inflation expected to reduce: Fuel inflation is expected to reduce to 3% from a high of over 10% in the current fiscal because some easing of crude oil prices is likely as global growth slows down.
- Decline in core inflation: Slowing domestic growth will ease core inflation from very sticky levels of over 6% last fiscal to 5.5% in the current one. However, the decline in core inflation will be limited as input cost pressures have not dissipated. To protect their margins, firms will continue to pass on input costs to end-consumer. Services inflation will also continue to exert pressure as the rotation of consumption demand from goods to services continues.
- Moderate food inflation: Food inflation, which has a high weightage in the Consumer Price Index and has driven headline inflation in the past, is projected to moderate to slightly below 5%, assuming a normal monsoon. However, food inflation has always been volatile and carries upside risks largely because of climate-related factors affecting agriculture output and prices.
How slowing global growth will have a negative impact on India’s exports?
- The impact of the growth slowdown in the US and Europe is deeper than the recovery in China: The US and Europe have a combined GDP that is twice that of China. Therefore, the impact of the growth slowdown in the US and Europe will be deeper than the recovery in China. This will have a negative impact on India’s exports to the US and Europe.
- India’s exports to the US and Europe are more than to China by a factor of six: India exports more to the US and Europe than to China by a factor of six. Therefore, the negative impact of the growth slowdown in the US and Europe will be felt more by India than by China.
- India’s growing dependence on commodity exports makes it more vulnerable to global growth volatility: India’s exports of petroleum products and steel are growing, and this makes India more vulnerable to global growth volatility. As global growth slows down, demand for commodities is likely to decline, which will have a negative impact on India’s exports.
External vulnerabilities
- India’s external vulnerability is expected to decline with a narrower current account deficit (CAD) and modest short-term external debt.
- The CAD is expected to narrow to 2% of GDP this fiscal from an estimated 2.5% last fiscal.
Conclusion
- The RBI’s decision to pause on rate hikes is driven by expectations of a decline in inflation. However, inflation risks remain, and the impact of rate hikes on GDP growth is expected to be significant. India’s external vulnerabilities are expected to decline, but the banking turmoil playing out amid interest rate hikes by important central banks and elevated debt levels remains a risk. The RBI’s decision to pause on rate hikes will be closely watched, and further rate hikes may be necessary if inflation risks persist.
Mains Question
Q. Enumerate the factors that led RBI to pause on rate hikes, and discuss the potential risks and impacts on the Indian economy?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: India- Bhutan border and trijunction
Mains level: India- Bhutan relationship
Central Idea
- India-Bhutan’s exemplary relationship has been a key factor in ensuring the stability and security of the region. The recent visit of Bhutan King Jigme Khesar Namgyel Wangchuck to India was focused on enhancing the bilateral relationship between the two countries. However, the unspoken part of the visit was the Bhutan-China boundary talks, which have gained momentum in recent times.
- Special and strategic relationship: India and Bhutan share a special and strategic relationship with a border of over 600 km. The bond has been strengthened since India’s independence, and it has been a buffer between China and India.
- India is Bhutan’s largest development partner: The relationship is not limited to rhetoric but extends to an institutional and economic framework. India is Bhutan’s largest development partner, and Bhutan is India’s biggest trade partner in the region.
- Hydroelectricity, a crucial factor: Hydroelectricity has become the biggest revenue earner of Bhutan, and India buys power generated in Bhutan. It makes Bhutan the country with the highest per capita income in South Asia today.
- Historical and theological relations: Bhutan is a Buddhist theocracy, monarchy, and modern state. The relationship between India and Bhutan is special from a historical, theological, strategic, and economic perspective.
Bhutan-China Boundary Talks
- Considerable progress but no decision yet: Before the King’s visit to India, Bhutanese Prime Minister Lotay Tshering had said in an interview that Bhutan and China have made considerable progress on demarcating border lines. Bhutan has been having talks with China on the boundary question for years, and there has been no decision yet.
- There will be adjustment of territory: Bhutan and China are adopting a modern methodology to draw boundary lines on the ground, and there may be some adjustment of territory as a result of that.
- India’s strategic interests: India’s strategic interests are involved in the boundary talks between Bhutan and China. China has been seeking a toehold in Bhutan for decades. Bhutan is fully conscious of India’s strategic needs.
- Trijunction: Where Bhutan decides its boundary with China (to the west) is of exceptional relevance to India because that is a trijunction of the three countries.
India’s Strategic Interests
- No compromise on national security: India will not talk about Bhutan-China negotiations publicly; however, when it comes to India’s national security, there will be no compromise.
- Siliguri corridor: Doklam plateau overlooks the Chumbi Valley, which overlooks the chicken’s neck (Siliguri corridor). India says this not because Bhutan is threatening its cooperation with India on this front, but to send a message to China that we will draw a line here in conformity with our national interest.
Why India needs Bhutan?
- Strategic location: Bhutan is strategically located between India and China, which makes it an important buffer state for India. Bhutan’s strategic location ensures India’s security and helps in maintaining regional stability.
- Water resources: Bhutan is the source of several rivers that flow into India, including the Brahmaputra, the Sankosh, and the Manas. India needs access to these rivers for irrigation, hydroelectric power generation, and other purposes. India has helped Bhutan in developing its hydropower potential and has signed several agreements for the purchase of hydropower from Bhutan.
- Trade and economic ties: India is Bhutan’s largest trading partner, and Bhutan relies heavily on India for its imports and exports. India provides Bhutan with various economic assistance and has helped Bhutan in its development process.
- Cultural and historical ties: India and Bhutan share a common cultural heritage and have historical ties dating back centuries. India has helped Bhutan preserve its cultural heritage and has supported Bhutan in its efforts to promote tourism.
Why Bhutan needs India?
- Security: Bhutan does not have a large army, and India provides security assistance to Bhutan. India has helped Bhutan in building its border infrastructure and has helped in the development of the Bhutanese army.
- Economic ties: India is Bhutan’s largest trading partner, and Bhutan relies heavily on India for its imports and exports. India provides economic assistance to Bhutan, and Indian companies have invested in various sectors in Bhutan.
- Infrastructure: India has helped Bhutan in building its infrastructure, including roads, airports, and telecommunication networks. India has also helped Bhutan in developing its hydropower potential, and several hydropower projects in Bhutan have been built with Indian assistance.
- Education and healthcare: India has helped Bhutan in the field of education and healthcare. Many Bhutanese students study in India, and India provides scholarships and grants to Bhutanese students. India has also helped Bhutan in building hospitals and providing medical assistance.
- Cultural and historical ties: Bhutan and India share a common cultural heritage and have historical ties dating back centuries. India has helped Bhutan in preserving its cultural heritage and has supported Bhutan in its efforts to promote tourism.
Future of India-Bhutan Relations
- The Bhutan-India relationship has survived because of spiritual underpinnings, geography, economy, and connectivity, all of which strengthen the relationship.
- India and Bhutan have survived mainly because it was built on mutual trust, which means Bhutan has equally driven the relationship. India should pursue this relationship with trust and complete faith.
- India must reach out to the new generation in Bhutan, which is being influenced by social media negativity and wrong information about India.
Conclusion
- The India-Bhutan relationship has been a key factor in ensuring the stability and security of the region. The relationship between the two countries has been built on mutual trust and has been strengthened by an institutional and economic framework. India’s strategic interests are involved in the boundary talks between Bhutan and China. India should pursue the relationship with trust and complete faith and should reach out to the new generation in Bhutan.
Mains Question
Q. Highlight the significance of the India-Bhutan relationship in ensuring regional stability and security? Discuss why India and Bhutan need each other?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NATO
Mains level: NATO expansion, and its implications
Central Idea
- The induction of Finland into NATO is a significant setback for Russia and President Vladimir Putin, as it has long been neutral in Moscow’s conflict with the West. The move has doubled Finland’s frontier with Russia and has implications for global governance of the Arctic region.
- The recent induction of Finland into the North Atlantic Treaty Organization (NATO) is a significant development that has strategic implications for Russia and the Arctic region.
- Finland has traditionally been neutral in the prolonged conflict between Moscow and the West.
- Its inclusion in NATO is seen as a major setback for Russia and President Vladimir Putin, who has cited NATO’s expansion closer to Russia’s borders as a justification for aggression against Ukraine.
What is the North Atlantic Treaty?
- North Atlantic Treaty, often referred to as the Washington Treaty, states the parties to the treaty seek to promote stability and well-being in the North Atlantic area.
- The signatories affirm their faith in the purposes and principles of the UN Charter and express their desire to live in peace with all people and governments, the treaty states.
Background
- Finlandisation: Finland’s neutrality during the Cold War made Finlandisation a part of the global diplomatic lexicon, referring to a small nation’s political deference to its larger neighbor.
- Russia’s policies in the neighbourhood: Many of Finland’s small European neighbors have been at the receiving end of Russia’s muscular regional policies over the past decade.
- Ukraine invasion: The Ukraine invasion has confirmed their worst fears, and they are seeking protection from the US and NATO.
Russia’s Response
- Countermeasures: Unsurprisingly, Moscow has responded to Finland’s inclusion in NATO by promising countermeasures.
- Encroachment on national interest: Dmitry Peskov, a Kremlin spokesman, called NATO’s inclusion of Finland an encroachment on our security and on Russia’s national interests.
- Monitoring: Moscow will be watching for any NATO military deployments in Finland.
Why does Russia fume over NATO?
- NATO’s expansion: Russia views NATO’s expansion into Eastern Europe as a threat to its security and influence in the region. The alliance’s decision to accept former Soviet republics and Warsaw Pact members as members is seen by Russia as a direct challenge to its strategic interests.
- Military exercises: Russia has also expressed concern over NATO military exercises in the region, which it sees as a provocation and a show of force. NATO’s decision to station troops and equipment in Eastern Europe has also been criticized by Russia.
- Missile defense system: Russia has been particularly critical of NATO’s missile defense system, which it sees as a threat to its own nuclear deterrence capabilities. Russia argues that the system is designed to neutralize its strategic weapons and that it undermines global strategic stability.
- Ukraine and Georgia: Russia has accused NATO of interfering in the affairs of Ukraine and Georgia, two former Soviet republics that are seeking closer ties with the West. Russia sees NATO’s support for these countries as an attempt to encircle and contain Russia.
Implications for India and the Arctic region
- Real punch to the Western alliance in the Nordic region: Finland has maintained a small but capable armed force that is well-trained and resilient, and its inclusion in NATO adds real punch to the Western alliance in the Nordic region.
- High north is commercial attraction: As the Arctic ice cap melts amidst global warming, the high north has become attractive commercially and contested geopolitically.
- India is an observer of the Arctic Council: India is an observer of the Arctic Council that seeks to promote wide-ranging cooperation in the polar north.
- China raising profile in the Arctic: The militarisation of the high north appears inevitable as Finland and Sweden turn from neutrals to Western allies and China raises its profile in the Arctic in partnership with Russia.
- Global governance: This might make global governance of the Arctic region increasingly problematic
Conclusion
- The induction of Finland into NATO is a significant development in the ongoing conflict between Russia and the West. The move has implications for the Arctic region, which is attracting global attention due to the melting of the Arctic ice cap. As a stakeholder in the region, India must closely monitor developments and prepare for any geopolitical consequences.
Mains Question
Q. In light of Finland’s recent inclusion in NATO, discuss the strategic implications for the Arctic region and India. India as a stakeholder in the region and what steps can India take to prepare for potential geopolitical consequences?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Police Excesses, Factors, challenges and solutions
Central Idea
- The recent case of human rights violation against an IPS officer in Ambasamudram highlights the need for humane policing in India. The history of police brutality across the globe, including in the US, reveals the need for change in the policing system. The pressure to produce results, coupled with corruption and lack of ethics training, contributes to police excesses, which must be curbed.
History of Policing Excesses
- Policing Excesses in U.S: The history of policing in many countries is pockmarked by episodes of excesses, and the U.S. is one such country which has had far too many instances of police torture.
- For example: The Rodney King incident of 1991 in Los Angeles and the death of George Floyd in Minneapolis in 2020 are some examples of police brutality.
Factors Contributing to Police Excesses in India
- Corruption among public servants: Corruption is rampant in India and is a major factor contributing to police excesses. Bribery and corruption make it easy for criminals to escape the law and for police officers to use violence and coercion to extract money and other benefits.
- The pressure to produce results: Police officers are often under tremendous pressure to produce results and show that they are making progress in solving cases. This pressure can lead to an overzealous approach to policing, with officers resorting to torture and other illegal methods to extract information and solve cases quickly.
- Lack of ethics training: Police officers in India are not given sufficient training in ethics and human rights. This lack of training makes it easier for officers to resort to violence and abuse of power, as they do not understand the consequences of their actions.
- Political interference: In some cases, politicians and other powerful people may interfere in police investigations or use their influence to protect criminals. This interference can undermine the rule of law and make it more difficult for police officers to do their job effectively and without fear or favor.
- Poor working conditions: Police officers in India often work long hours in difficult and dangerous conditions. This can lead to stress and fatigue, which can in turn lead to a higher incidence of police excesses.
- Lack of accountability: There is often little accountability for police officers who commit excesses. In many cases, officers who are found guilty of human rights violations are simply transferred to another location, rather than being punished or dismissed from the force. This lack of accountability sends a message to other officers that they can get away with abuse of power and violence.
Role of Technology and Ethics in Policing
- Both technology and ethics are necessary for effective policing: While technology can help solve crimes and improve policing efficiency, ethics and a commitment to human rights are necessary to ensure that police officers act within the law and respect the rights of all citizens.
- Technology alone is not enough: The technology has played a significant role in improving policing in India, with many officers now trained in the use of modern tools and techniques to solve crimes. However, technology alone is not enough, and that ethics must also be prioritized in policing.
- Training in ethics must be prioritized at all levels of the police force: Many police officers in India lack sufficient training in ethics and human rights, which makes it easier for them to resort to violence and abuse of power. Training in ethics must be prioritized at all levels of the police force, from the highest-ranking officers to those on the front lines.
- Police leaders are crucial players: The police leaders, such as DGPs and IGPs, have a crucial role to play in indoctrinating young recruits on the value of sticking to the law and civilised behaviour.
What is mean by humane policing?
- Humane policing refers to a style of law enforcement that places a greater emphasis on preserving the human rights and dignity of individuals.
- Humane policing recognizes that police officers are entrusted with great power and authority and that they have a duty to exercise this power with respect, compassion, and professionalism.
- It prioritizes building trust and positive relationships between law enforcement agencies and the communities they serve.
- Humane policing It seeks to avoid the use of excessive force, unnecessary aggression, or intimidation in policing activities.
- It recognizes the importance of accountability and transparency in law enforcement.
- It also recognizes the importance of training and education for police officers in areas such as cultural competence, mental health awareness, and conflict resolution.
Conclusion
- It is sad and equally true that many in the political firmament subscribe to the philosophy that without physical force on misbehaving citizens, the quality of policing cannot improve and law and order cannot be maintained. This perception has to be changed. India needs a human policing. Moreover, the authorities must take swift action against offending officials to send a strong message that no illegal physical treatment of crime suspects will be tolerated.
Mains Question
Q. Rising cases of police excesses reveals the need for change in the policing system. In this backdrop highlight the factors behind Policing Excesses in India and what steps can be taken to promote humane policing?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UN Water Action Conference
Mains level: Water agenda, voluntary commitments and challenges
Central Idea
- The International Water Action Conference held by the United Nations in March 2023, which resulted in over 670 commitments from various governments, multilateral institutions, businesses, and non-governmental organizations to address water security issues. There are implications of these commitments which needs to be examined the challenges associated with achieving universal, safe, affordable, and equitable access to water in line with SDG 6.
- First UN conference on freshwater: The Water Action Conference held in March 2023 was the first UN conference on freshwater in almost 50 years.
- Aims to advance water agenda and achieve SDG 6: The conference aimed to review the Water Action Decade 2018-2028, which aims to advance the water agenda and achieve SDG 6, sustainable management of water and sanitation for all.
Themes of the conference
The Conference has five themes that support the SDG 6 Global Acceleration Framework:
- Water for Health: Access to ‘WASH’ (Global Water, Sanitation, & Hygiene) including the Human Rights to Safe Drinking Water and Sanitation
- Water for Sustainable Development: Valuing water, the water-energy-food nexus and sustainable economic and urban development.
- Water for Climate, Resilience and Environment: Source to sea, biodiversity, climate, resilience and disaster risk reduction.
- Water for Cooperation: Transboundary and international water cooperation, cross sectoral cooperation and water across the 2030 Agenda.
- Water Action Decade: Accelerating the implementation of the objectives of the Decade for Action, including through the UN Secretary-General’s Action Plan.
What is Water Action Decade (2018–2028)?
- In December 2016, the United Nations General Assembly unanimously adopted the resolution International Decade (2018–2028) for Action Water for Sustainable Development to help put a greater focus on water during ten years.
- It aims to advance the water agenda by energizing existing programs and projects and inspiring water action to achieve the 2030 Agenda, in particular, Sustainable Development Goal 6 (SDG 6), which envisions the sustainable management of water and sanitation for all.
- The initiative focuses on promoting action-oriented partnerships to improve water resources management, water-use efficiency, and access to safe drinking water and sanitation services. The Decade aims to create a platform for sharing knowledge and experiences, promoting innovation, and building capacity for sustainable water management.
The International Water Action Agenda and commitments made
- International Water Action Agenda: The conference resulted in the international Water Action Agenda, to which over 670 commitments were made by governments, multilateral institutions, businesses, and non-governmental organizations to address water security issues.
- Commitments are voluntary: Nearly 164 governments and 75 multilateral organizations made commitments, but these commitments are voluntary and legally non-binding.
Implications of commitments made
- The commitments embodied in the Water Action Agenda must be scrutinized to see whether they will yield universal, safe, affordable, and equitable access to water that is consistent with SDG 6.
- Meeting this target by 2030 will require capital expenditures of $114 billion per year.
- The recurring operations and maintenance for basic water and sanitation service (WASH) costs are estimated to rise from about $4 billion to over $30 billion per year by 2030.
Challenges associated with achieving SDG 6
- Funding: Funding from regional, national, and international sources prioritizes new water infrastructure rather than water maintenance services, resulting in decreased service for water customers.
- Investment: The investment required would require valuing water, which in turn requires robust water measurement and accounting.
- Limitations: There are serious limitations in our knowledge about the volume, flux and quality of water in lakes, rivers, soils and aquifers. There are huge gaps in water usage data.
India’s commitments and challenges
- India made two significant commitments at the conference:
- An investment of $240 billion in the water sector and
- Efforts to restore groundwater levels.
- However, groundwater extraction in India increased from 58% to 63% between 2004-17, further exacerbated by climate change resulting in intermittent rainfall, which further undermines the recharge potential.
- The revised Groundwater Bill 2017 vests State groundwater boards with creating laws, managing water allocation and other relevant issues.
- The State boards are understaffed, and lack in expertise and prioritizing socio-political conflicts over groundwater resources.
Facts for prelims
| Initiative |
Objective |
| Jal Shakti Abhiyan, 2019 |
Ensure water conservation and management in 255 water-stressed districts across India |
| Atal Bhujal Yojana, 2019 |
Improve groundwater management and promote community-based groundwater management |
| Namami Gange Project, 2014 |
Clean and rejuvenate the Ganges river and address pollution through treatment of sewage and industrial effluents |
| Swachh Bharat Abhiyan, 2014 |
Improve sanitation and cleanliness across the country and promote hygiene practices |
| Pradhan Mantri Krishi Sinchai Yojana. 2015 |
Improve irrigation efficiency and increase water use efficiency in agriculture |
| National Water Mission, 2011 |
Ensure sustainable water management and water security in the country and improve water use efficiency |
| National Aquifer Mapping and Management Programme (NAQUIM), 2012 |
Map the aquifers across the country and develop a groundwater management plan |
| Integrated Watershed Management Programme (IWMP), 2009 |
Enhance soil and water conservation practices in rainfed areas and promote the development of rainwater harvesting structures to enhance groundwater recharge |
Conclusion
- The international Water Action Conference resulted in over 670 commitments to address water security issues. These commitments are voluntary and legally non-binding, but they are expected to inspire collective political will to address the many water challenges.
Mains Question
Q. What is Water action decade? Discuss the challenges associated with achieving universal, safe, affordable, and equitable access to water in line with SDG 6.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Foreign trade policy, 2023
Mains level: Foreign trade policy, 2023, problems and solutions
Central Idea
- The Foreign Trade Policy 2023 (FTP 2023) has been recently introduced, but it falls short of addressing the challenges that Indian exporters are likely to face in the global market. India needs to adopt 21st-century trade policy instruments such as product and process standards to improve the quality and efficiency of products.
- The policy is dynamic and open-ended to accommodate the emerging needs of the time.
- It aims to promote India’s overall exports, which has already crossed US$ 750 Billion.
- The key approach to the policy is based on these 4 pillars:
- Incentive to Remission,
- Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
- Ease of doing business, reduction in transaction cost and e-initiatives and
- Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) Policy
FTP 2023’s inadequate focus on 21st-century trade policy instruments
- 20th-century mindset: The FTP 2023’s primary focus is on regulating, prohibiting, and restricting trade, which is a 20th-century mindset. In contrast, most countries today rely on improving product quality and production efficiencies by rapidly infusing technology to expand their presence in global markets.
- Focus on upgrading the current standards: India needs to focus on upgrading institutions, production facilities, and promoting the development and facilitation of trade to meet the current standards.
Rejigging of export promotion schemes
- Export promotion schemes: Export promotion schemes were modified after a WTO dispute settlement panel ruled against India in 2019, which found that these schemes provide export subsidies that are not allowed under WTO rules.
- Remission of Duties: The Remission of Duties or Taxes on Export Products (RoDTEP) Scheme was launched in 2021 to neutralize the effect of taxes and duties included in exported goods. The Rajya Sabha’s Standing Committee on Commerce found several weaknesses in the scheme, and FTP 2023 should have responded to the recommendations.
Developing districts as export hubs
- FTP 2023 introduces the novel idea of developing districts as export hubs, which could help achieve the objective of balanced regional development.
- However, the policy only speaks of setting up export promotion committees at the district and state/UT levels, with no mention of supporting efficient infrastructure.
E-commerce and India’s readiness to engage in the WTO
- E-commerce is a focus area of FTP 2023, but India has opposed discussions on extending the rules of the WTO in this area.
- Moreover, advanced countries have been seeking data portability, which India has refused to accept.
- It remains unclear whether the mention of e-commerce in FTP 2023 implies that India is ready to engage in the WTO on this matter.
Conclusion
- FTP 2023 falls short of addressing the challenges that Indian exporters are likely to face in the global market. It needs to focus on upgrading institutions, production facilities, and promoting the development and facilitation of trade, which requires the Directorate General of Foreign Trade (DGFT) to coordinate with all the standard-setting agencies of the government and relevant institutions in the private sector. Developing districts as export hubs could help achieve the objective of balanced regional development, but supporting efficient infrastructure is critical for the programme’s success.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Overview of various pension schemes
Mains level: Issues with OPS and NPS
Central Idea
- The New Pension Scheme (NPS) implemented by the NDA government in 2003-04 was a far-sighted reform that moved towards a sustainable contributory pension system. However, some state governments have reversed the pension reform and returned to the financially burdensome and fiscally non-viable Old Pension Scheme (OPS).
What is pension?
- A pension is a retirement plan that provides a stream of income to individuals after they retire from their job or profession. It can be funded by employers, government agencies, or unions and is designed to ensure a steady income during retirement.
What is OPS?
- The OPS, also known as the Defined Benefit Pension System, is a pension plan provided by the government for its employees in India.
- Under the OPS, retired government employees receive a fixed monthly pension based on their last drawn salary and years of service.
- This pension is funded by the government and paid out of its current revenues, leading to increased pension liabilities.
- NPS is a market-linked, defined contribution pension system introduced in India in 2004 as a replacement for the Old Pension Scheme (OPS).
- NPS is designed to provide retirement income to all Indian citizens, including government employees, private sector workers, and self-employed individuals.
Negative impacts of the reversal to OPS
- The reversal to OPS would have negative impacts, especially on the poor and vulnerable population, including women and children. Here are some potential impacts:
- Reallocation of resources: The reversal to OPS would lead to a reallocation of resources away from the state’s development expenditure, which benefits the poor, and towards a much smaller group of people who have benefited from a secured and privileged job throughout their working life. It could worsen inequality and lower economic growth in the states.
- Reduction in productivity: Going back to OPS would reduce the productivity of the poor, further diminishing their future economic prospects. Economic services such as infrastructure and rural and urban development would be affected more severely than social services.
- Fiscal burden: The old pension scheme (OPS) was financially burdensome and fiscally non-viable. As public employees’ life expectancy increased, the state’s fiscal burden under the OPS began to rise exponentially, necessitating pension reforms. Reversing to OPS would put the fiscal burden back on the government, which could have negative impacts on the state’s finances.
- Tradeoff between pensions and development expenditure: Pension reforms were a watershed moment for the states, and reversing to OPS would result in a tradeoff between pension and development expenditure of the states. The pension reforms aimed to finance the increased non-development expenditure related to pensions through taxes or borrowing. However, our analysis revealed that from 1990 to 2004, the states’ revenues did not match the state’s increased expenditure, resulting in a higher fiscal deficit.
Facts for prelims: NPS vs OPS
| Parameter |
National Pension System (NPS) |
Old Pension Scheme (OPS) |
| Type of System |
Defined Contribution System |
Defined Benefit System |
| Funding |
Contributions from employee and employer |
Government-funded |
| Investment |
Market-linked investments in various asset classes |
No direct investment involved |
| Returns |
Subject to market risks |
Predetermined and not market-linked |
| Pension Amount |
Depends on accumulated corpus and investment returns |
Based on last drawn salary and years of service |
| Annuity & Lump-sum Withdrawal |
Minimum 40% corpus used to purchase annuity, remaining can be withdrawn as lump-sum |
Fixed monthly pension, no annuity or lump-sum withdrawal |
| Portability |
Portable across jobs and sectors |
Limited to government employees |
| Flexibility |
Choice of investment options, fund managers, and asset allocation |
No flexibility, pension determined by predefined formula |
Conclusion
- The state governments should not ignore the impact of the OPS on the poor and vulnerable, particularly women and children. The reversal will deprive them of essential services such as health and education and prevent them from participating in growth opportunities. Therefore, state governments should not reverse the far-sighted pension reform and should continue to focus on development expenditure that benefits the poor.
Mains Question
Q. What is the New Pension Scheme (NPS) and how does it differ from Old Pension Scheme (OPS) Now states are reversing to OPS as a populist measure, discuss its the negative impacts.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Indian economy challenges
Central Idea
- The current paradigm of economics in India is inadequate in providing solutions to the three major economic challenges the country is facing. The economists need to break out of their self-referential silo and examine the science of complex self-adaptive systems.
The Poly-crisis faced by India
- The Indian government is grappling with three economic challenges at the same time:
- Management of inflation,
- Trade agreements, and
- Employment
- Economists do not have a systemic solution for this poly-crisis. Consensus among them has broken down even about solutions to its separate parts.
Lessons from China and Vietnam
- Foreign investment in China: China and India opened their economies to global trade around the same time, some 35 years ago. Since then, China attracted foreign investment that was many times more than in India, and the incomes of its citizens increased five times faster.
- Vietnam emerging as more attractive destination: To attract investors, India must compete with other countries. Vietnam is often cited as a country that is proving to be more attractive than India to western and Japanese investors. However, when looking into Vietnam, they rediscover what was learned from China.
- High levels of human development: When both countries opened to foreign investors China before Vietnam, they had already attained high levels of human development, with universal education and good public health systems.
The Problem with the Current Paradigm
- There are some fundamental flaws in the current paradigm of economics.
- Economists often cite Tinbergen’s theory, which states that the number of policy instruments must equal the number of policy goals. This is a mechanical and linear view of how a complex system works.
- In complex organic systems, root causes contribute to many outcomes. The behaviour of the system cannot be explained by linear causes and effects. The causes interact with each other, and effects also become causes.
Facts for prelims: What is Tinbergen’s theory?
- Tinbergen’s theory states that the number of policy instruments (P) must be equal to the number of policy goals (G), in order to achieve the desired outcome.
- In other words: P = G
- This means that for each policy goal, there should be at least one policy instrument to achieve it.
- For example, if the policy goal is to reduce inflation, then there should be a policy instrument such as interest rate changes to achieve that goal. Similarly, if the policy goal is to promote employment, then there should be a policy instrument such as job creation programs to achieve that goal. Tinbergen’s theory emphasizes the importance of having a clear and consistent policy framework to achieve desired outcomes
Crises and the Inadequacy of the System
- Policies that fit one country may not fit the needs of others: Macro-economists search for global solutions, but trade and monetary policies that fit one country may not fit the needs of others. Their needs have emerged from their own histories.
- Emphasis on data trends: Economists arrive at solutions by comparing data trends of different countries, and in their models, people are numbers. Economists do not listen to real people, whereas politicians try to at least.
- For instance: The inadequacy of the current paradigm was revealed by several crises in this millennium, the 2008 global financial crisis, inequitable management of the global COVID-19 pandemic, and the looming global climate crisis.
Conclusion
- A new economics is required to solve the poly-crisis faced by India. A movement to change the paradigm of economics’ science to bring perspectives from the sciences of complex self-adaptive systems has begun even in the West. India’s economists must step forward and lead the change towards a new economics paradigm based on the sciences of complex self-adaptive systems. India’s policymakers will have to find a way to strengthen the roots of the economic tree while harvesting its fruits at the same time, and the current paradigm of economics cannot provide solutions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Same-sex marriage, Read the attached article
Central Idea
- The Centre’s opposition to the legalization of same-sex marriages based on cultural and societal concepts of marriage and family is examined and critiqued.
The Centre’s Argument
- The Centre argues that same-sex marriages are not recognized in Indian traditions, ethos, culture, and societal concepts of marriage.
- The Parliament, and not the Court, should decide on legalizing same-sex marriages.
Societal Conceptualization of Marriage
- Marriage is a social institution, and the Centre’s stance finds backing in four interrelated sub-arguments.
- Same-sex marriages demand nuanced alteration of the conventional understanding of marriage.
- The current legislative framework promotes the conventional understanding of marriage.
- Religious and societal morality still conceptualizes intercourse as a procreative activity.
- Conventional conceptualisations of family and marriage are facing evolutionary challenges.
- Same-sex marriage is the legal recognition of a marriage between two individuals of the same sex.
- It grants same-sex couples the same legal and social recognition, rights, and privileges that are traditionally associated with marriage, including property rights, inheritance rights, and the ability to make decisions for each other in medical emergencies.
- The recognition of same-sex marriage varies around the world, with some countries legalizing it while others do not.
- The issue has been the subject of much debate and controversy, with arguments for and against same-sex marriage based on religious, cultural, social, and legal considerations.
The Language of Rights
- The Court must evaluate the Centre’s argument on its own merits.
- While addressing the violations of fundamental rights resulting from non-recognition of same-sex marriages, the question of same-sex marriages is about the rights of a society to conserve traditions and an individual’s constitutional freedoms.
Back to Basics: Special Marriage Act?
- The Special Marriage Act is a law in India that allows individuals of different religions or nationalities to marry each other.
- It was enacted in 1954 and came into effect from 1955.
- The Special Marriage Act allows for inter-caste and inter-religious marriages, and couples who register under this act are not required to change their religion or follow any religious rites or rituals.
- The act also provides for divorce on certain grounds and maintenance to the spouse and children.
Conclusion
- While the rights issues concerning same-sex couples are substantial, the implications of recognizing same-sex unions as a couple require a broader debate in society and the legislature. The push to formalize the institution of same-sex unions must come from representative bodies such as Parliament.
Mains Question
Q. Provide a detailed analysis including relevant legal, social, cultural, and ethical considerations of same sex marriage in India along with a way ahead
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Related facts
Mains level: Sodium Intake, and burden of Hypertension and cardio vascular diseases
Central Idea
- The WHO recently published the ‘Global Report on Sodium Intake Reduction’ which sheds light on the progress of its 194 member states towards reducing population sodium intake by 30% by 2025. Regrettably, progress has been lethargic, with only a few countries making considerable headway towards the objective. Consequently, there is a proposal to extend the deadline to 2030.
The target of reducing population sodium intake
- The target of reducing population sodium intake by 30% by 2025 was set by the World Health Organization (WHO) in its Global Action Plan for the Prevention and Control of Noncommunicable Diseases in 2013.
- The plan aims to reduce premature deaths from non-communicable diseases, including cardiovascular diseases, by 25% by 2025, and to achieve a 30% reduction in the mean population intake of salt/sodium.
- The target of reducing population sodium intake is aimed at reducing the burden of hypertension, which is a major risk factor for cardiovascular disease.
Why reducing sodium intake is essential for India?
- Reduced sodium intake and decreased blood pressure: There is a strong correlation between reduced sodium intake and decreased blood pressure, leading to a decrease in stroke and myocardial infarction incidence. Lowering sodium intake by 1 gram per day leads to a 5 mm Hg reduction in systolic blood pressure, as per a study in The BMJ.
- Cardiovascular disease: Elevated BP is a critical risk factor for cardiovascular disease, which is the leading cause of mortality worldwide. It contributed to 54% of strokes and 47% of coronary heart diseases globally in 2001.
- Economic impact of cardiovascular disease on LMICs: Cardiovascular disease has a staggering economic impact on LMICs, estimated at $3.7 trillion between 2011 and 2025 due to premature mortality and disability. This represents 2% of the GDP of LMICs. The Indian economy alone faces losses surpassing $2 trillion between 2012 and 2030 due to cardiovascular disease, highlighting the need for effective interventions to mitigate the economic and health consequences of the disease in LMICs.
How cardiovascular disease and hypertension pose significant challenges in India?
- Cardiovascular diseases as primary cause of mortality and morbidity:
- As per data from the Registrar General of India, WHO, and the Global Burden of Disease Study, cardiovascular diseases have emerged as the primary cause of mortality and morbidity. Data from the Registrar General of India, WHO, and the Global Burden of Disease Study
- Age-adjusted cardiovascular disease mortality rate increased by 31% in the last 25 years
- Hypertension as leading risk factor for such diseases in India
- Prevalence of hypertension in India:
- More prevalent among men aged 15 and above compared to women
- More common in southern states, particularly Kerala, while Punjab and Uttarakhand in the north also report high incidence rates
- Pre-hypertensive population in India
- Defined by systolic blood pressure levels of 120-139 mmHg or diastolic blood pressure levels of 80-89 mmHg
- 5% of women and 49.2% of men at the national level
- Significant risks of cardiovascular disease, stroke, and premature mortality for Indians with BP readings between 130 and 139/80-89 mmHg
- Many Indians classified as pre-hypertensive are now included in the newly defined stage-I hypertension by the American guidelines.
- Circulatory system diseases: The 2020 Report on Medical Certification of the Cause of Death shows that circulatory system diseases account for 32.1% of all documented deaths, with hypertension being a major risk factor.
Global Efforts to Reduce Sodium Intake
- The WHO aims to reduce population sodium intake by 30% by 2025
- Only a few countries have made considerable progress towards the objective
- India’s score of 2 on the WHO sodium score signifies the need for more rigorous efforts to address the health concern
Government Initiatives
- Voluntary programmes: The Union government has initiated several voluntary programmes aimed at encouraging Indians to decrease their sodium consumption
- Eat Right India: The FSSAI has implemented the Eat Right India movement, which strives to transform the nation’s food system to ensure secure, healthy, and sustainable nutrition for all citizens
- Aaj Se Thoda Kam: FSSAI launched a social media campaign called Aaj Se Thoda Kam.
Urgent Need for a Comprehensive National Strategy
- Despite of awareness efforts, the average Indian’s sodium intake remains alarmingly high. Evidence shows an average daily consumption of approximately 11 grams.
- India needs a comprehensive national strategy to curb salt consumption
- Collaboration between State and Union governments is essential to combat hypertension, often caused by excessive sodium intake
Conclusion
- The excessive consumption of salt can lead to severe health consequences, and India has a pressing need to reduce its sodium intake. While the government has initiated several voluntary programs, these have fallen short of the goal. India needs a comprehensive national strategy, engaging consumers, industry, and the government, to curb salt consumption. Collaboration between State and Union governments is essential to combat hypertension, often caused by excessive sodium intake.
Mains Question
Q. Reducing population sodium intake is a critical step towards preventing and controlling non- cardiovascular diseases and hypertension. Comment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GHG's, carbon tax,
Mains level: Carbon pricing mechanism, global efforts
Central Idea
- Environmental destruction has been a consequence of boosting GDP growth in every country due to the absence of a price for natural resources like air and forests. To combat this, the biggest economies of the G-20 must agree on valuing nature, including by pricing carbon effluents. As president of the G-20 this year, India can take the lead in carbon pricing, which will open unexpected avenues of decarbonization.
Pricing Carbon at present
- Three ways of pricing carbon: carbon tax, emissions trading system (ETS), and import tariff on the carbon content
- GHG emission: 46 countries price carbon, covering only 30% of global greenhouse gas (GHG) emissions
- IMF’s proposed price: International Monetary Fund (IMF) proposed price floors of $75, $50, and $25 a ton of carbon for the United States, China, and India, respectively
- Benefits: Economy-wide benefits of carbon pricing in terms of damages avoided generally outweighed the cost it imposed on individual industries in EU, British Columbia, Canada, and Sweden
- Boost to renewables: Carbon pricing makes investment in renewable energy such as solar and wind more attractive.
Facts for prelims
| Carbon Pricing Method |
Description |
| Carbon Tax |
A domestic tax imposed on carbon emissions, directly discouraging the use of fossil fuels and raising revenue for investment in cleaner sources of energy or protection of vulnerable consumers. Example: Korea and Singapore. |
| Emissions Trading System (ETS) |
A system that allows entities with excess emissions allowances to sell them to those that are emitting more than their allotted limit. Example: European Union and China. |
| Import Tariff on Carbon Content |
A tax on imported goods based on the amount of carbon emissions produced during their manufacturing process, designed to discourage importing high-emissions products. Example: Proposed by the European Union. |
| Carbon Offsets |
A voluntary mechanism in which companies or individuals pay for projects that reduce greenhouse gas emissions. These projects may include reforestation, renewable energy, or energy efficiency initiatives. The amount of emissions reduced by the project can then be used to offset the emissions of the buyer. |
- Among the three ways of pricing, India could find a carbon tax appealing as it can directly discourage fossil fuels, while raising revenues which can be invested in cleaner sources of energy or used to protect vulnerable consumers
- IMF proposed $25 a ton as a starting point for India
- The main obstacle is the argument by industrial firms about losing their competitive advantage to exporters from countries with a lower carbon price
- All high, middle, and low-income countries should set the same rate within each bracket
Way ahead: Need for Global Carbon Pricing
- The first movers will be the most competitive: High enough carbon tax across China, the US, India, Russia, and Japan alone (more than 60% of global effluents), with complementary actions, could have a notable effect on global effluents and warming. The first movers will be the most competitive
- India’s leadership: India can play a lead role by tabling global carbon pricing in the existential fight against climate change as president of the G-20 summit this September
- Communication is important: Any type of carbon pricing faces stiff political opposition therefore communicating the idea of wins at the societal level is vital.
Back to Basics: GHG’s
|
Greenhouse Gas
|
Properties |
Major Sources |
Impact
|
| Carbon Dioxide (CO2) |
-Long-lived in atmosphere.
-Traps heat from the sun |
– Burning of fossil fuels (coal, oil, gas)
-Deforestation |
– Accounts for 76% of global GHG emissions – Primary cause of climate change |
| Methane (CH4) |
– Short-lived in atmosphere
– Traps more heat than CO2 |
– Agriculture (livestock digestion, manure management)
– Energy production
– Landfills |
– Accounts for 16% of global GHG emissions – Contributes to both climate change and air pollution |
| Nitrous Oxide (N2O) |
– Long-lived in atmosphere
– Traps more heat than CO2 |
– Agriculture (fertilizer use, manure management)
– Industrial processes
– Combustion of fossil fuels |
– Accounts for 6% of global GHG emissions
– Contributes to both climate change and air pollution |
| Fluorinated Gases (HFCs, PFCs, SF6) |
– Can have high global warming potential |
– Industrial processes (refrigeration, air conditioning)
– Semiconductors
– Electrical transmission equipment |
– Accounts for less than 3% of global GHG emissions
– Can have very high global warming potential |
| Ozone (O3) |
– Not a GHG, but plays a role in climate change |
– Human-made chemicals that release ozone into the atmosphere |
– Contributes to climate change by trapping heat |
| Chlorofluorocarbons (CFCs) |
– Human-made chemicals that destroy ozone in the atmosphere |
– Used in refrigeration, air conditioning, and aerosol sprays |
– Contributes to climate change by destroying ozone, which leads to greater heat-trapping |
Conclusion
- India can take the lead in carbon pricing as president of the G-20 this year. By pricing carbon effluents, India can promote investment in renewable energy, protect vulnerable consumers, and contribute to the global fight against climate change. However, there is a need for effective communication to ensure that the idea of carbon pricing is understood at the societal level, and any type of carbon pricing faces stiff political opposition.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mission Karmayogi
Mains level: Citizen-Centric Governance, initiatives and Citizen participation
Central idea
- Citizen-centric governance is an evolving concept, and to put it into action requires clarity in the actions that civil servants perform and how citizens engage with the state. Citizen engagement is about collaborative partnerships and dialogue and must involve all stakeholders to ensure the overall development of a community or a nation.
Citizen-Centric Governance
- Paradigm shift in traditional governance: Citizen-centric governance refers to a paradigm shift in the traditional governance structures where the focus is shifted from the power holders to the citizens.
- Access to information and services to citizens: Traditionally, governance structures hold the power to make decisions that affect the lives of citizens. But citizen-centric governance focuses on providing citizens with access to information, services, and resources and on engaging them in the policy-making process.
- Increased citizen participation: The objective of citizen-centric governance is to increase citizen participation in decision-making processes
Mission Karmayogi
- Capacity building of civil servants: Mission Karmayogi, the National Programme for Civil Services Capacity Building has been strategically working to build the capacities of civil servants through various innovative interventions to sensitise and reframe the fabric of citizen participation.
- karmachari to karmayogi: Today, thousands of railway employees, Gramin Dak Sevaks, police personnel in the UTs and employees of BSNL are all going through an outcome-based capacity-building programme that is shifting them from thinking like a karmachari to acting like a karmayogi.
Citizen Engagement
- Citizen engagement refers to how citizens participate in the political, social and economic aspects of their community or society.
- Citizen engagement is highly embedded in the nature of the political and governance context and existing power relations.
- It needs to be understood as a core component of any governance system, and in democracies, citizen engagement is a basic principle because it is understood that governments derive their authority and power from the people.
What the multi-stakeholder engagement requires?
- Constructive dialogue: Development by the people and for the people is indeed possible. Citizen engagement towards democratising the process of development necessarily involves a constructive dialogue between and amongst all stakeholders.
- Mutual trust and respect: Meaningful dialogue among the stakeholders the state, citizenry, private sector, media, civil society and academia can sustain only when there is mutual trust. The relationship between these multiple stakeholders needs to be driven by mutual respect and an appreciation of interdependence and reciprocity.
- Redrawing boundaries of engagement: However, this may involve redrawing boundaries of engagement and roles that stakeholders have traditionally assumed for themselves.
- Partnership approach: The multi-stakeholder engagement would require the adoption of the partnership approach by all parties involved.
Conclusion
- Citizen-centric governance and citizen engagement are important aspects of development in any democracy. By adopting a partnership approach and mutual respect for each other’s roles, stakeholders can work together to ensure the overall development of a community and nation at large. The Indian government’s program, Mission Karmayogi, is a right step towards building the capacities of civil servants and sensitizing them to citizen participation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Autism
Mains level: Autism spectrum disorders, Prevalence in India and way ahead
Central Idea
- In India, the prevalence of autism spectrum disorders (ASD) is a widely debated issue due to a lack of systematic estimates. Most estimates have been derived from studies based on school children, revealing that over one crore Indians may be on the autism spectrum. However, there are notable cultural differences in diagnosing autism between countries, which highlights the need to assess the prevalence of autism spectrum disorders specifically in the Indian context.
What is Autism?
- Spectrum disorder: Autism, also known as Autism Spectrum Disorder (ASD), is a neurodevelopmental disorder that affects communication, social interaction, and behaviour. It is called a spectrum disorder because the symptoms and severity can vary widely between individuals.
- Common symptoms: Some common symptoms of autism include difficulty with social interactions, such as maintaining eye contact or understanding nonverbal cues, delayed speech and language development, repetitive behaviors, and sensory sensitivities.
- Cause: Autism is believed to be caused by a combination of genetic and environmental factors, but the exact cause is not yet fully understood.
- Cure: There is currently no cure for autism, but early interventions and therapies can help individuals with autism lead fulfilling and independent lives.
Prevalence of Autism in India
- Lack of systematic estimates: Autism is a global issue and affects individuals of all cultures, ethnicities, and socioeconomic backgrounds. However, there is a lack of systematic estimates of autism prevalence in India.
- Methos failed: Researchers have attempted to estimate prevalence through government hospitals, but this method failed due to the absence of central medical registries.
- Conservative estimates: As a result, prevalence was estimated through school-based assessments. According to conservative estimates, well over one crore Indians are on the autism spectrum. This highlights the need for further research and attention to address the prevalence of ASD in India.
- Cultural Differences and Diagnosis of Autism:
- Notable cultural differences exist in the diagnosis of autism spectrum disorder. In the US and UK, the majority of children with autism spectrum diagnosis are verbal, with average or higher IQ, and attending mainstream schools.
- However, in India, a significant majority of children with a clinical diagnosis of autism also have intellectual disability and limited verbal ability. This difference is driven by sociological factors, such as access to appropriate clinical expertise, provisions for inclusion in mainstream schools, and availability of medical insurance coverage.
Challenges in Assessing Autism
- Assessment tools: Assessment of autism spectrum disorder is primarily behavioral, and most widely used autism assessment tools are not available in Indian languages.
- Indigenous autism assessment tools challenges: There has been a rise in the development of indigenous autism assessment tools. Despite the development of these tools, it can be challenging to compare across different assessment measures.
Demand and Supply in India
- Shortage of mental health professionals: Most autism assessment tools need to be administered by specialist mental health professionals. However, there is a significant shortage of mental health professionals in India, with less than 10,000 psychiatrists, a majority of whom are concentrated in big cities.
- Delay is costly: Delay in interventions can be costly for neurodevelopmental conditions such as autism.
- Demand and supply gap need to be met: This gap between demand and supply cannot be met directly by specialists alone, and parallel efforts to widen the reach of diagnostic and intervention services through involving non-specialists is required. Emerging evidence suggests the feasibility of involving non-specialists in autism identification and intervention through digital technology and training programs.
Way ahead: Need for an All-India Program
- National program on autism: The need of the hour is to develop a national program on autism in India that links researchers, clinicians, service providers to the end-users in the autism community.
- Essential components: This program needs to have three essential components that are joined up: assessment, intervention, and awareness.
- Assessment: Research is needed to develop appropriate assessments and design efficient implementation pathways.
- Intervention: Clinical and support service workforce needs to be expanded by training non-specialists such that a stepped-care model can be rolled out effectively across the nation.
- Awareness: Large-scale initiatives need to be launched to build public awareness that can reduce the stigma associated with autism and related conditions.
Conclusion
- There are challenges in diagnosing and assessing autism in India which highlights the need for a comprehensive and coordinated effort to address them. By expanding the clinical and support service workforce, training non-specialists, and developing appropriate assessments and interventions, India can improve outcomes for those on the autism spectrum and reduce the stigma associated with the condition. This national program needs to be informed by consultation with different stakeholders, with a primary focus on end-users within the Indian autism community.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Semiconductor and its apllications
Mains level: India's semiconductor policy
Central Idea
- India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets.
Background
- The US Department of Commerce and India’s Ministry of Commerce and Industry recently signed a memorandum of understanding to ensure subsidies do not hinder India’s semiconductor ambitions.
- However, the likelihood of Intel investing in a greenfield 300mm wafer fabrication plant in India remains low due to its focus on fabs in the US.
Facts for prelims: Semiconductors
- Semiconductors are materials that have properties that are in between those of conductors (such as copper) and insulators (such as rubber).
- They have the ability to conduct electricity under certain conditions, but not under others.
- The conductivity of semiconductors can be manipulated through the introduction of impurities or doping with other materials. This process alters the electronic properties of the material and creates regions of excess or deficit of electrons, called p-type and n-type regions respectively. The interface between these regions is known as a p-n junction, which is a fundamental building block of many semiconductor devices.
Applications
- Semiconductors are a fundamental component of modern technology and have significant importance in many areas of our daily lives.
- Electronics industry: Semiconductors are a crucial component in the electronics industry, which is one of the fastest-growing industries in the world. Semiconductors are used in a wide range of electronic devices, from smartphones and computers to medical equipment and home appliances.
- Miniaturization: The ability to miniaturize electronic components using semiconductors has led to the development of smaller, more powerful, and more energy-efficient devices. This has enabled the development of portable devices, such as smartphones and laptops, which have become an essential part of our daily lives.
- Energy efficiency: Semiconductors have enabled the development of energy-efficient devices, which are crucial in the context of climate change and global warming. Energy-efficient lighting, for example, uses semiconductor materials such as LEDs, which consume far less energy than traditional incandescent bulbs.
- Renewable energy: Semiconductors are also essential in the development of renewable energy technologies such as solar cells and wind turbines. Solar cells, for example, use semiconductor materials to convert sunlight into electrical energy.
- Medical applications: Semiconductors are also used in a wide range of medical applications, from imaging devices to implantable medical devices. In particular, semiconductor-based biosensors are becoming increasingly important for disease diagnosis and monitoring.
All you need to know about India’s semiconductor policy
- India has launched a new semiconductor policy called the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.
- The policy aims to attract investment in semiconductor fabrication units, also known as fabs, and encourage the development of a domestic ecosystem for semiconductor design and manufacturing.
The key objectives of the policy
- Attracting investment: The policy aims to attract global semiconductor companies to set up manufacturing units in India by providing them with incentives such as financial support, tax incentives, and land at subsidized rates.
- Promoting domestic manufacturing: The policy aims to promote domestic manufacturing of semiconductor components by providing incentives such as production-linked incentives, subsidies, and preferential market access to products made in India.
- Developing human resources: The policy aims to develop a skilled workforce in the semiconductor sector by providing training and education programs in collaboration with leading academic institutions.
- Encouraging research and development: The policy aims to encourage research and development in the semiconductor sector by providing financial support to research institutions and startups.
- India’s Semiconductor History
- The Semi-Conductor Laboratory (SCL) was established in Mohali in 1983 to create an electronics ecosystem.
- Market liberalization in 1991 and a fire in 1989 derailed these plans, but the facility still has the potential to support India’s semiconductor ecosystem.
- Shifting Focus:
- The Ministry of Electronics and Information Technology (MeITy) has been trying to attract Intel to India, but their efforts may not be fruitful.
- A better approach would be to leverage SCL’s existing assets and focus on the More than Moore segment of semiconductors (>180 nm node) for automotive electronics, PV-Inverters, 5G infrastructure, and railway electronics.
- Incentives and Subsidies:
- Subsidies should target fabless design houses with proven designs willing to fabricate at the SCL in the 180nm+ node.
- Incentives should also be provided to global design companies with products aimed at India-specific markets.
- The existing DLI/PLI schemes do not provide such incentives, and a course correction is needed.
- Leveraging Existing Infrastructure:
- Efforts to open up subsidies to global small and medium-sized enterprises in the upstream supply chain are welcome.
- However, coupling these efforts with the defined incentives and targeted upgrades is essential for success.
- Leadership and Execution: To achieve this vision in the next five years, the SCL needs a full-time director with prior “More than Moore” foundry experience, as opposed to a career scientist from the Department of Space.
Conclusion
- India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets. This will require a strategic shift in focus, targeted incentives, and strong leadership. Failure to act may result in India missing out on the semiconductor fabrication bus once again.
Mains Question
Q. Semiconductors are a fundamental component of modern technology. In this light analyze India’s semiconductor policy.
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