Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Security Initiative
Mains level: Global Security Initiative, India- china relations
Central Idea
- The Global Security Initiative (GSI), a China-led framework aiming to restore stability and security in Asia, appears to be more of a counter-narrative to U.S. leadership rather than a genuine attempt to establish a sustainable security order.
What is GSI?
- The GSI was introduced by Chinese Minister of Foreign Affairs Qin Gang at the Lanting Forum in Beijing.
- The initiative is based on five pillars: mutual respect, openness and inclusion, multilateralism, mutual benefit, and a holistic approach.
- Mutual Respect and Adherence to International Law:
- China’s relations with neighbors like India and Southeast Asian countries demonstrate a lack of respect for their sovereignty and territorial integrity.
- China’s assertive manoeuvres in the South China Sea, rejection of UNCLOS, and undermining of India’s territorial integrity are at odds with the GSI’s first principle.
- Openness and Inclusion:
- Despite advocating for openness and inclusion, China engages in exclusionary policies in the East and South China Seas, rejecting freedom of navigation and consolidating its sphere of influence.
- Multilateralism and Security Cooperation:
- China’s involvement in multilateral institutions often involves asymmetric power relations, as seen in its dealings with ASEAN members.
- Its delay in establishing a Code of Conduct for the South China Sea and ongoing militarization in the region undermine this principle.
- Mutual Benefit:
- China’s Belt and Road Initiative (BRI) has the potential to benefit all parties involved. However, its funding of unsustainable projects for countries with low credit ratings creates debt burdens and destabilizes international macroeconomic stability.
- China’s insistence on a larger share in joint resource exploration with the Philippines is another example of disregarding mutual benefit.
- Holistic Approach:
- China’s rise in a transitioning multipolar international system has led to power competitions with established and rising powers, such as the U.S. and India.
- Its engagements with these powers indicate a narrowly defined goal for its power interests. Furthermore, China’s involvement in non-traditional security threats, such as the COVID-19 pandemic and arming terror groups, shows a lack of holistic approach.
Conclusion
- China’s rise in a transitioning multipolar international system has led to power competitions with established and rising powers, and its involvement in non-traditional security threats shows a lack of holistic approach. It’s Global Security Initiative, which is a vision of a future security order, is vastly different from China’s recent track record of external engagement.
Mains Question
Q. What is China’s Global Security Initiative (GSI)? It is said that China’s GSI is vastly different from China’s recent track record of external engagement. Discuss
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: HDI and India's rank
Mains level: HDI and India's performance analysis
Central Idea
- India is now one of the fastest-growing economies globally. However, this growth has not resulted in a corresponding increase in its Human Development Index (HDI). According to the Human Development Report of 2021-22, India ranks 132 out of 191 countries, behind Bangladesh (129) and Sri Lanka (73).
- Composite statistical measure by UNDP: The HDI is a composite statistical measure created by the United Nations Development Programme to evaluate and compare the level of human development in different regions around the world.
- As an alternative with broader aspects: It was introduced in 1990 as an alternative to conventional economic measures such as Gross Domestic Product (GDP), which do not consider the broader aspects of human development.
- Aspects: The HDI assesses a country’s average accomplishment in three aspects 1. A long and healthy life, 2, knowledge, and 3. A decent standard of living.
- India ranks 132 out of 191 countries in the HDI 2021.
The subnational HDI: A new index
- Given India’s large size and population, it’s critical to address subnational or state-wise disparities in human development.
- A new index has developed by using the methodology suggested by the UNDP and the National Statistical Office (NSO), which measures human development on a subnational level for 2019-20.
HDI Calculation
- The HDI is calculated using four indicators: life expectancy at birth, mean years of schooling, expected years of schooling, and Gross National Income (GNI) per capita.
- The subnational HDI uses GSDP per capita as a proxy indicator for GNI since GNI per capita estimates are unavailable at the subnational level.
- The methodology involves calculating the geometric mean of the normalised indices for the three dimensions of human development while applying the maximum and minimum values recommended by the UNDP and NSO.
Subnational HDI Findings
- The subnational HDI shows that while some states have made considerable progress, others continue to struggle. Delhi occupies the top spot and Bihar occupies the bottom spot.
- The five states with the highest HDI scores are Delhi, Goa, Kerala, Sikkim, and Chandigarh. Nineteen states, including Kerala, Maharashtra, Tamil Nadu, Haryana, Punjab, Telangana, Gujarat, and Andhra Pradesh, have scores ranging between 0.7 and 0.799 and are classified as high human development states.
- The bottom five states are Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Assam, with medium levels of human development.
Reasons for Discrepancies
- The economic growth has been unevenly distributed, with the top 10% of the Indian population holding over 77% of the wealth. This has resulted in significant disparities in access to basic amenities, healthcare, and education.
- While India has made significant progress in reducing poverty and increasing access to healthcare and education, the quality of such services remains a concern.
Conclusion
- The government needs to prioritize human development alongside economic growth to ensure that the benefits of growth are more evenly distributed, and it requires a multi-faceted approach to address various issues such as income inequality, gender inequality, access to quality social services, environmental challenges, and social infrastructure investment. India must prioritize investments in human development and job creation, particularly for its youth, to realize its demographic dividend.
Mains Question
Q. Analyze the performance of different states in terms of their Human Development Index (HDI) and suggest measures that could be taken to address the disparities in human development in the country
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNSC, UNITE Aware technology platform
Mains level: UNSC, India's tenure and contribution
Central idea
- India’s two-year stint in the United Nations Security Council (UNSC) was unprecedented, with a focus on maritime security, terrorism, UN peacekeeping, reformed multilateralism, and the Global South. India served as the Chair of three important UNSC Committees, made efforts to bring conflicting parties on the same page, and raised important issues like religiophobia.
- Focus on Priorities:
- Clear priorities upon entering the Council in January 2021
- Priorities include maritime security, terrorism, UN peacekeeping, reformed multilateralism, and the Global South
- India elected Chair of three important UNSC Committees
- India’s Role in Maritime Security:
- Prime Minister of India chaired a UNSC meeting on maritime security
- Presidential Statement issued was the first comprehensive document on maritime security
- Document referenced UN Convention on the Law of the Sea as international law setting out the legal framework
- Statement called for freedom of navigation, anti-piracy measures, and combating terror and transnational crime at sea
- Conflicts on the Agenda:
- Old conflicts festered and new conflicts arose, including Myanmar, Afghanistan, Ethiopia, Mali, Syria, Palestine, Yemen, Haiti, Libya, and the Sahel, as well as Ukraine
- The Council stood polarised and unable to act decisively
- India attempted to bring the Council together on these issues
- India’s Involvement in Myanmar:
- Military takeover in Myanmar occurred in February 2021
- Permanent-5 were pulling in opposing directions while ASEAN counselled caution
- India shares a nearly 1,700 kilometre-long border with Myanmar and it was crucial to stop violence, bring in stability and ensure democratic processes went forward
- India ensured balanced and comprehensive Council pronouncements, which culminated in a resolution on Myanmar (adopted under India’s presidency) in December 2022.
India’s Impact on the UNSC: Steadfast Diplomacy in the Face of Global Challenges
- India’s role in Afghanistan Crisis:
- India steered negotiations resulting in UNSC Resolution 2593 for benchmarks in Afghanistan, including stopping cross-border terrorism, protecting rights of women and minorities, ensuring an inclusive government, and providing humanitarian assistance.
- India maintains a firm position on the Taliban upholding these benchmarks.
- India’s stance on Ukraine Conflict:
- India’s independent stand calling for dialogue and peace during the Ukraine conflict resonated with many developing countries.
- India spoke out against unilateral sanctions on oil, food, and fertilizers.
- As the conflict spilled over into India’s G-20 Presidency, India is now launching an initiative to convert its proactive position into action.
- India’s focus on counter-terrorism:
- As Chair of the UNSC Counter-terrorism Committee (CTC), India brought the CTC meeting to India in October 2022.
- India attempted to list terrorists under UNSC Resolution 1267 sanctions but was thwarted, however, the proposal to list Abdul Rehman Makki, Deputy Amir/Chief of the Lashkar-e-Taiba was approved by the UNSC, with India as a proposer.
India on peacekeeping
- Largest contributor including women: India has been the largest contributor of UN peacekeepers, including as a pioneer in women peacekeeping.
- UNITE Aware technology platform: Its launching of the UNITE Aware technology platform to strengthen real-time protection of peacekeepers is to be noted.
- Calling for accountability for crimes against peacekeepers: In August 2021, India piloted the first UNSC resolution by India in more than five decades, calling for accountability for crimes against peacekeepers. India also gifted two lakh vaccines to all UN peacekeepers.
Facts for Prelims: The UNITE Aware technology platform
- Developed by India: The UNITE Aware technology platform is a system developed by India in collaboration with the United Nations to enhance the safety and security of peacekeepers deployed in conflict zones.
- Real time ground situation: It is a real-time situational awareness system that uses advanced technologies such as satellites, drones, and geospatial tools to provide up-to-date information on the ground situation to peacekeeping forces.
- Mobile app: The system also includes a mobile app that allows peacekeepers to report incidents and receive alerts in real-time.
- Help to make informed decisions: The platform is designed to help peacekeepers make informed decisions and respond effectively to emerging threats, thereby reducing the risks to their safety and security.
On other important issue
- Climate change:
- India’s focus on the developing world, especially Africa and West Asia, was enhanced, given their close historical relations.
- In December 2021, India thwarted a move by the West to wrest climate change from the UN Framework Convention on Climate Change-led process and bring it under the ambit of the UNSC, where the P-5 are also major historical polluters.
- The draft resolution was defeated in the Council when India and Russia voted against.
- A change in the climate change architecture would have shut out the voice of the Global South, especially Small Island Developing States.
- Contemporary issues:
- India also raised the issue of a contemporary form of religiophobia in the Council when, while condemning phobia against Abrahamic religions, it forcefully put forth the need to combat rising hate crimes and phobias against non-Abrahamic religions as well.
- With hate crimes being fuelled abroad by vested interests, India’s stand needs to be robustly taken forward.
Conclusion
- India’s Presidency led to a discussion on urgent Council reform, highlighting India’s strong performance and the need for its permanent presence at the horseshoe table.
Mains Question
Q. India’s tenure in the United Nations Security Council from 2020 to 2022 was marked by its focus on several important priorities and its involvement in various global issues. Evaluate India’s performance.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India's export and import and the current trends
Central Idea
- The Ministry of Commerce and Industry has released the latest trade data that shows a continued contraction in India’s merchandise exports and imports in February. It indicates a slowdown in both the global and domestic economies.
Overview
- The pace of contraction has deepened, and this has resulted in a further narrowing of the country’s merchandise trade deficit.
- The disaggregated data shows that core-exports and core imports have continued to contract, and there has been a softening in imports of consumer and investment goods, pointing towards weakening domestic demand.
What the data shows?
- Deepening of Contraction: Both exports and imports have seen a deepening of the pace of contraction. Merchandise exports fell by 8.8% in February, while imports declined by 8.2% in the same month. These figures follow a decline of 6.6% and 3.6% in exports and imports respectively in January.
- Narrowing Trade Deficit: The contraction has led to a further narrowing of the trade deficit to $17.4 billion in February.
- Impact on Export Destinations: The report by Nomura reveals that the sharpest declines have been observed in India’s exports to the US, China, Japan, and the rest of Asia.
- Overall Growth: The higher export growth in the first half of the financial year has pushed overall growth for the year so far (April-February) to 7.55%.
Sectors Affected
- Exports side:
- The disaggregated data reveals that core exports, which exclude exports of oil, gold, and gems and jewellery, have continued to contract.
- 16 out of the 30 main export segments have fallen in February, including labour-intensive segments such as leather and textiles.
- Non-oil non-gems and jewellery exports are almost at the same level as last year.
- On the imports side:
- Core imports, which exclude oil, gold, and gems and jewellery, have also continued to contract.
- The data points towards a softening of imports of consumer and investment goods, indicative of weakening domestic demand.
Back to basics: Trade Deficit
- A trade deficit occurs when a country’s imports of goods and services exceed its exports.
- In other words, it is the amount by which the value of a country’s imports exceeds the value of its exports. It is often seen as an indicator of a country’s economic competitiveness and can have implications for the overall balance of payments and the strength of the domestic currency.
How Narrowing of trade deficit is beneficial?
- Narrowing of the trade deficit means that the country is importing fewer goods than it is exporting, which can improve the overall balance of payments and help to strengthen the domestic currency.
- This can also have positive effects on the economy by reducing the dependence on foreign borrowing and boosting domestic production and employment.
The outlook for exports remains subdued
- According to a report by Crisil, India’s merchandise export growth is likely to moderate to 2-4 per cent in the coming fiscal year as two of the country’s biggest destinations for exports the US and EU are expected to slow down sharply.
- As per the International Monetary Fund’s latest World Economic Outlook, the US economic growth is expected to slow down from 2 per cent in 2022 to 1.4 per cent in 2023, while the Euro region is expected to moderate from 3.5 per cent to 0.7 per cent over the same period.
Conclusion
- The trade data indicates a slowdown in the economy. Sluggish exports and tight monetary policy are expected to reduce growth further. This assessment by the World economic outlook implies that exports are unlikely to provide a fillip to growth. The overall economic momentum will be further weighed down as the full impact of the RBI’s tighter monetary policy will be felt across the country.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Primary Health care and Universal Health care
Central Idea
- The Universal Health Coverage (UHC) and its implementation in India raises the question of whether we believe in health as a basic human right, which India’s Constitution guarantees under the right to life. The UHC should encompass primary, secondary, and tertiary care for all who need it at an affordable cost without discrimination.
The Definition of Health
- The definition of health according to the World Health Organization (WHO), which includes mental and social well-being and happiness beyond physical fitness, and an absence of disease and disability.
- We cannot achieve health in its wider definition without addressing health determinants, which necessitates an intersectoral convergence beyond medical and health departments.
Difference between Primary health care (PHC) and Universal health care (UHC)
- The main difference between PHC and UHC is that PHC is a level of care within the health care system, while UHC is a broader goal of ensuring access to health care for all individuals.
- PHC is typically provided at the primary care level, while UHC includes all levels of care, from primary to secondary and tertiary care.
- PHC is focused on basic health care services and health promotion, while UHC aims to provide comprehensive health care services to all individuals.
Health for All by 2000
- The slogan Health for All by 2000 proposed by Halfdan Mahler and endorsed by the World Health Assembly in 1977. It argues that universal health care/coverage (UHC) was implied as early as 1977.
- India committed itself to the ‘Health for All’ goal by 2000 through its National Health Policy 1983.
International Conference on PHC
- The International Conference on Primary Health Care, at Alma Ata, 1978, which listed eight components of minimum care for all citizens.
- Components included: It mandated all health promotion activities and the prevention of diseases, including vaccinations and treatment of minor illnesses and accidents, to be free for all using government resources, especially for the poor.
- Components excluded: Chronic diseases, including mental illnesses, and their investigations and treatment were almost excluded from primary health care. When it came to secondary and tertiary care, it was left to the individual to seek it from a limited number of public hospitals or from the private sector by paying from their own pockets.
Concerns around The Astana Declaration
- The Astana declaration of 2018, which calls for partnership with the private sector. However the commercial private sector, which contributes to alcohol, tobacco, ultra-processed foods, and industrial and automobile pollution, is well established.
- The Astana declaration never addressed poverty, unemployment, and poor livelihood, but eulogizes quality PHC only as the cornerstone for Universal Health Coverage and ignores broader Universal Health Care.
Conclusion
- Every individual has a right to be healed and not have complications, disability, and death. That right is guaranteed only by individualism in public health, the new global approach to UHC, where nobody is left uncounted and uncared for. The Alma Ata declaration of primary health care can be left behind as a beautiful edifice of past concepts, and we should move forward with a newer concept of UHC.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India and China's Comparative Growth prospects
Central Idea
- The Chinese government’s growth target of 5% for 2023 has disappointed observers, given that it is lower than last year’s target and below the expected GDP growth for India in 2023. This is all the more surprising if one considers that India is benefiting from the positive impact of the country reopening after COVID-19 lockdowns while China should benefit from its reopening only this year.
Reasons for China’s lower growth target?
- Risk of undershooting growth target again: The Chinese government does not want to run the risk of undershooting its growth target again, as it happened in 2022.
- Weak external demand and doubts about private investment: Even if consumption is recovering, external demand remains weak and it is hard to know whether private investment will indeed rise given the doubts about the role of the private sector in the Chinese economy as well as increasingly cautious sentiment being expressed by foreign investors.
- Real estate sector dragging down growth: The real estate sector is still dragging down growth.
Sustainable growth
- The Chinese government recognizes that too high a growth rate is no longer desirable, as it only aggravates financial imbalances.
- Instead, they are promoting sustainable growth, which involves a structural shift of the Chinese economy and the implementation of tighter regulatory measures to contain financial risks and achieve more social objectives, such as a green economy and food security.
Job creation and foreign investment
- China emphasises the importance of job security as an objective of sustainable growth, with a higher target for new jobs set by the Chinese government.
- China’s recent charm offensive to retain foreign direct investment in China is an important source of job creation, given the country’s concern about the job market, especially young workers.
- However, investors are looking at new pastures, with India likely to be a major beneficiary. Foreign investors are beginning to contribute more substantially to job creation in India, which could pose challenges for China as it tries to hold on to foreign direct investment within the country.
Comparison of India and China’s growth prospects
- The growth prospects of India and China, with a focus on job creation and competition for foreign direct investment.
- while India and China may not be too different in size and population, growth prospects differ substantially.
- The Chinese government’s cautious growth targets are consistent with the current challenges facing the Chinese economy, but they face more competition than before, especially from India, which has a larger market size and labor pool.
- This pattern of India’s resilient growth and China’s cautious growth targets will accelerate in the next few years, especially if the reshuffling of the value chain continues, pushed by geopolitics and high costs in China.
Conclusion
- The Chinese economy could be facing structural deceleration while India enjoys the benefits of its demographic dividend. China’s structural deceleration and tighter regulatory measures may also affect its future growth prospects. As a result, India may be better positioned for sustained growth compared to China in the coming years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: DEPA
Mains level: Data Governance, Data Sovereignty
Central Idea
- India’s digital strategies and data governance have advanced in recent years, but there are concerns regarding inclusivity, transparency, security, and sustainability. India’s G-20 presidency presents an opportunity to showcase advancements in data infrastructures and governance, while balancing the interests of stakeholders, promoting ethical and responsible practices, and navigating the complex issues of data sovereignty.
What is Data Governance?
- Data governance refers to the overall management of the availability, usability, integrity, and security of data used in an organization.
- Data governance of a country is the policies, procedures, and practices established by the government to ensure that data is effectively managed and protected throughout its lifecycle.
- This includes defining standards for data collection, storage, usage, and sharing to ensure the accuracy, consistency, and reliability of data.
DEPA and Related Concerns
The launch of India’s Data Empowerment and Protection Architecture (DEPA), a consent management tool, has generated both excitement and concern among stakeholders.
- Potential: DEPA has the potential to improve data protection and privacy for citizens by giving them greater control over the use and sharing of their personal information. By allowing individuals to easily manage and control their data consents, DEPA could help to build trust in digital technologies and data governance.
- Concerns:
- There are risks associated with DEPA, particularly in terms of security and privacy. If the consent management tool is not properly implemented or managed, there is a risk that personal information could be misused or misappropriated.
- The implementation of DEPA may be inconsistent across different sectors and jurisdictions, which could undermine its effectiveness and create confusion among citizens.
- What needs to be done?
- In order to realise the potential benefits of DEPA and minimise the risks, it is important that the tool is implemented in a transparent, consistent, and secure manner.
- This will require close collaboration between the government, the private sector, civil society, and other stakeholders and the development of clear and effective regulations and standards.
Advancements in Other Sectors and related concerns
- Digital Payments: Significant progress in financial inclusion and promotion of digital transactions through Unified Payments Interface (UPI) and other options.
- Digital tech in Healthcare: Use of digital technologies can enhance access to health-care services and empower farmers
- Security and privacy: There are concerns that relate to security and privacy on the one hand and on infrastructure, connectivity and the availability of a skilled human workforce on the other hand.
- Data Misuse: There are also concerns around the potential misuse of data and information in these sectors. For example, in the health sector, there is a risk that sensitive medical information could be misused or exploited for commercial purposes, while in agriculture, there is a risk that market information could be manipulated for the benefit of certain actors.
- Ownership and governance of data: Another issue is that of ownership and governance of data generated and collected in health and agriculture. What are the rights of data providers? And what are the responsibilities towards them? The state has to play a key role in addressing and resolving such issues.
What is Data sovereignty?
- It is a principle that a country has the right to control the collection, storage, and use of data within its borders and citizens’ rights to informational self-determination over their data
- It is closely related to issues of privacy, security, and national sovereignty, and is increasingly important in the age of digital globalization and the proliferation of cloud computing services.
Data sharing governance and India’s opportunity
India Data Management Office (IDMO):
- India’s establishment of an IDMO is a step forward in the country’s journey towards data sharing and data governance.
- The IDMO is expected to oversee and coordinate the implementation of India’s digital strategies and data governance framework, and to ensure that these efforts are aligned with the country’s values and priorities.
- It will also work to promote the development and implementation of open-source solutions, which will help to ensure that underlying data architectures are a social public good, and to promote digital technologies to become accessible and affordable for all.
- Again, this is a great opportunity for India to develop solutions that can be adopted and adapted in other countries. Open source and open innovation models can be important alternatives to proprietary solutions that are governed by big tech companies.
Conclusion
- India’s digital strategies and data governance have made significant progress in recent years, but there are important concerns and issues to address. It is crucial to find a middle way between restrictive data sovereignty and limitless data flow, navigate complex issues of privacy, and invest in necessary infrastructure and skills to ensure responsible and accountable data governance.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-China border issues and management
Central Idea
- India and China appear to be moving towards a new modus vivendi to maintain peace and tranquillity along their disputed 4,000 kilometre border. They are discussing measures to ease the border situation, including creating no-patrol zones along the Line of Actual Control (LAC) and upgrading the border management mechanism.
Older arrangements and need for new measures
- Blockades: In 2020, the older arrangements, shaped by the agreements of 1993, 1996, 2005 and 2013, came apart in Ladakh after the Chinese massed troops in Tibet and established blockades at six points on the Line of Actual Control (LAC) to prevent Indian troops from patrolling the border.
- Clashes: A clash at Galwan in June 2020 led to the deaths of 20 Indian and four Chinese soldiers, the first such losses on the LAC since 1975. The Sino-Indian clash, in December 2022, at Yangtse, north-east of Tawang, suggests that new measures may be needed across the LAC, and not just in Ladakh.
Attempts to Ease the Border Situation
- Working Mechanism for Consultation and Coordination (WMCC): Important discussions that took place between Indian Ministry of External Affairs and the Ministry of Foreign Affairs, China, met in Beijing for the 26th Meeting of the Working WMCC on China-India Border Affairs, on February 22, 2023. This was the first in-person meeting of the WMCC that had held the previous 11 rounds since the 2020 events by video conference.
- Other Measures: Discussions have taken up the issue of upgrading the border management means to replace the WMCC with a mechanism that will have both military and civilian officers. The no-patrol zones could lead to a package settlement in the two remaining areas of Depsang and Charding Nala.
- Confidence-building Measures: The entire range of confidence-building measures since 1993 was premised on the belief that both sides largely accepted the lay of the LAC, though they had differences that related to some 18-20 points on it. The 1993 and 1996 agreements specifically spoke about the importance of identifying and resolving these differences.
- No-patrol zones: The no-patrol zones could be confined to the places where the two sides have overlapping claims. Chinese journalist-scholar Qian Feng suggested that the concept of the zone of actual control could replace the “line of actual control” in some areas that had no obvious geomorphological features or population.
The Idea of Shifting the Goalposts
- The idea of creating no-patrol zones is an echo of the original proposal by Chinese Premier Zhou Enlai following a similar set of circumstances experienced today.
- In October 1959, an Indian police party was ambushed at Kongka La leading to the deaths of 10 personnel and the capture of another dozen.
- Zhou proposed to Prime Minister Jawaharlal Nehru in a letter of November 7, 1959, that both sides withdraw 20 kilometers from the so-called McMahon Line, as well as the line up to which each side exercises control in the west.
Conclusion
- Creating no-patrol zones along the LAC could be a possible solution to the border conflict, as well as upgrading the border management mechanism to include both military and civilian officers.
Mains Question
Q. Discuss the recent developments in the India-China border conflict and the measures being taken to maintain peace and tranquillity along the border
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Monuments of National Importance
Mains level: Monuments of National Importance, Shedding the colonial legacy, Promoting India's rich heritage rationally
Central Idea
- The decolonization drive started by the present government in India to change the British mindset of those responsible for writing history books, which led to the neglect of important monuments and archaeological sites. The Economic Advisory Council’s report on Monuments of National Importance, which he sees as a significant step in the right direction for the preservation and designation of monuments that reflect Bharat’s history. There are some anomalies in the list of monuments of national importance and suggests changes in the way India looks at the preservation of monuments.
What are the recommendations given by the report?
- Rationalise and evolve criteria for India’s list of monuments: The report underlined the urgent need to rationalise India’s list of monuments of national importance and recommended that the ASI should evolve substantive criteria and a detailed procedure for declaring monuments to be of national importance.
- Book of detailed information: ASI should publish a book of notifications with detailed information about each MNI’s provenance, hand over protection and upkeep of monuments of local importance to respective states and denotify to the extent possible, all standalone antiquities like cannons and statues.
- Funds: Allocation of funds for the preservation of MNI should be increased and ASI should retain the proceeds generated from revenue streams like tickets, events, fees and other sources.
- Inadequate efforts: After India’s independence, little effort was made to correct the British mindset of those responsible for writing history books, which resulted in the neglect of monuments and archaeological sites.
- British view of India: History books continued to teach the history of India’s defeats and its enemies’ victories, which perpetuated the British view of India.
The Decolonization Drive under the present Government
- National Heroes: The present government led by PM Modi started the decolonisation drive to bring out the sagas of King Suheldev, Rani Durgavati, and Lachit Barphukan, among others.
- For example: The government highlighted the story of the founder-king of Delhi, Anangpal Tomar, and declared the neglected Anang Tal as a monument of national importance.
- Names, sites, insignia of national importance: The government also held national and international events at the Sindhu-Saraswati site of Dholavira and unveiled a new Shivaji-era inspired naval insignia.
Significance of this Report
- The Economic Advisory Council’s report on Monuments of National Importance is a significant step in the right direction.
- The report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history.
- All the recommendations made by the report can be implemented without amending the Ancient Monuments and Archaeological Sites and Remains Act and need only executive orders.
Anomalies in the List of Monuments of National Importance
- There are some anomalies in the list of monuments of national importance.
- There is not a single monument connected with the struggles of Dalits and B R Ambedkar’s life that has been declared a national monument.
- Some monuments, like Tota-Maina ki Qabar and Dadi Poti ka Gumbad, have no history, and nobody knows whether they should be declared as Monuments of National Importance.
- Therefore, all agencies working on monuments be unshackled from the British slave mindset and given into the hands of those who know their subject.
Conclusion
- There is hope that the Bibek Debroy-Sanjeev Sanyal report will bring a whiff of fresh thinking in the direction of preserving and designating monuments that reflect Bharat’s history. There is the need for an Archaeological Foundation to preserve the civilizational and revolutionary monuments of India.
Mains Question
Q. Discuss the recommendations given by the Economic Advisory Council’s report on Monuments of National Importance and its significance in preserving and designating monuments that reflect Bharat’s history.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Operation Greens Scheme
Mains level: Operation Greens Scheme; TOP farmers concerns and solution
Central Idea
- The Operation Greens scheme aimed to develop a value chain for reducing extreme price fluctuations in the three basic vegetables (tomatoes, onions, and potatoes), enhance farmers’ realizations, and improve their share of the consumer rupee. However, the scheme has not been successful in achieving its goals, as seen by the recent protests against low prices by onion and potato farmers.
![pib] Operation Greens Scheme - Civilsdaily](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2021/08/Operation_green-3.png)
- The Operation Greens scheme is a government initiative launched in the 2018-19 Union budget by the present government.
- It aims to develop a value chain for reducing extreme price fluctuations in the three basic vegetables, including tomatoes, onions, and potatoes (TOP).
- The scheme was later expanded to 22 perishable crops in the 2021-22 budget.
- The government hopes that by developing a sustainable value chain for these perishable commodities, farmers will benefit from better price realization, while consumers will have access to quality products at reasonable prices.
Aim & Objectives:
- To enhance value realization of TOP farmers; reduction in post-harvest losses; price stabilization for producer and consumers and increase in food processing capacities and value addition.
- Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual-use varieties.
- Reducing post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
- Increasing food processing capacities and value addition in the TOP value chain with firm linkages with production clusters.
- Setting up a market intelligence network to collect and collate real-time data on demand and supply and price of TOP crops.
Components:
- Short-term intervention by way of providing transportation and storage subsidy @ 50% and
- long-term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of the eligible project cost subject to a maximum of Rs. 50 crore per project
Limited Success of Operation Greens Scheme
- Retail tomato prices: Tomato prices in wholesale markets have dropped significantly, but retail prices have not reduced much, indicating limited success.
- Low Onion price: Onion and potato farmers are protesting against low prices, highlighting the scheme’s lack of effectiveness.
- For instance: There are protests by Maharashtra’s onion growers against low prices, including relay hunger fasts, stoppage of auctions at major mandis, and a 200-km march to Mumbai. Similarly, potato farmers in Uttar Pradesh have demanded that the government procure their tuber at Rs 10 per kg, as against the ruling Rs 6-6.5/kg market price at Agra.
Reasons behind its limited success
- Problem Not with Lack of Storage or Processing Capacity: UP alone has an abundance of cold stores with ample capacity to store perishable goods like potatoes. Maharashtra’s growers have built enough kandha chawls to store onions for 4-6 months. Despite the creation of storage capacity, price volatility persists in milk and cane payment arrears to farmers.
- Price Volatility: The prices of TOP crops have been volatile, which has adversely affected both farmers and consumers. The prices of these commodities tend to fluctuate sharply due to seasonality, weather conditions, and other factors, resulting in uncertainty and instability in the market.
- Implementation Issues: The scheme’s implementation has been marred by delays, bureaucratic hurdles, and lack of coordination among various stakeholders, which has resulted in low participation and limited success.
- Lack of Market Linkages: Another reason for limited success is the lack of market linkages between producers and consumers. The farmers are unable to access markets directly, which leads to dependence on intermediaries who manipulate prices, resulting in price volatility.
Need for Price or Income Assurance for Farmers
- Investment: Investment in farm-gate, agri-logistics, and storage-cum-processing infrastructure needs to be encouraged.
- Assurance: Price or income assurance for farmers is necessary, especially for horticulture, dairy, and poultry producers who do not enjoy minimum support price benefits.
- Diversification: The future for Indian agriculture lies in crop diversification, which will spur greater consumption of foods incorporating proteins (pulses, milk, eggs, and meat) and micro-nutrients (fruits and vegetables), instead of only calories and carbohydrates.
- Deficiency price payments: The deficiency price payments or per-hectare direct income transfers could be the way forward.
Conclusion
- It is evident that the limited success of the Operation Greens scheme underscores the urgent need for a more comprehensive approach to address the challenges faced by TOP farmers. A more holistic approach is required that prioritizes farmer empowerment, investment in infrastructure, and promotion of crop diversification. By adopting such an approach, the government can not only mitigate the impact of price volatility on farmers but also achieve its broader goal of building a sustainable and resilient agricultural sector that benefits both producers and consumers alike.
Mains Question
Q. What is Operation Greens scheme? Analyse its limited success in achieving its objectives and Suggest measures to improve the scheme’s effectiveness.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Stunting, wasting, Human capital Index
Mains level: Undernutrition a significant challenge
“Healthy women and children are pillars of a flourishing society”
Central Idea
- Undernutrition is a serious public health issue leading to adverse health consequences and affecting the economy, especially in India. Early stimulation and nutrition interventions in infants and young children lead to improved outcomes in adult life. India ranks poorly on the Human Capital Index and has high levels of stunting, anaemia, and malnutrition. Evidence suggests investing in maternal and early-life nutrition leads to high returns on investment.
Undernutrition leads to adverse health consequences and affects the economy
- Child deaths: Undernutrition leads to 3.1 million child deaths annually, which accounts for 45 percent of all child deaths.
- High levels of stunting In India: India has unacceptably high levels of stunting (35.5 percent), despite marginal improvement over the years.
- Stunting affects per capita income: Two-thirds of India’s current workforce is stunted, which has enormous economic costs in terms of a decrease in per capita income. The average reduction in per capita income for developing countries is at 7 percent, with a high of 13 percent for India due to the high rates of stunting.
- Wasting in India: The economic losses incurred by India due to wasting are estimated at more than US $48 billion in terms of lifetime lost productivity.
- Anaemia: Another compounding factor is anaemia among young women, at 57 percent, which has lasting effects on their future pregnancies and childbirth. The situation further worsens when infants are fed inadequate diets, and there is inadequate sanitation and hygiene.
Investing in the well-being of women and children is an effective strategy
- Investing in early childhood: Evidence suggests that every additional dollar invested in quality early childhood programs yields a return of between US$6 and US$17.
- Better income in future: Early stimulation in infants is known to increase their future earnings by 25 percent. Stunting in childhood leads to impaired brain development, lower cognitive skills and education, leading to lower incomes in the future.
- For instance: According to estimates, children who are stunted earn 20 percent less as adults than children who are not stunted.
Increased investment in human capital brings economic growth
- Human capital is the real wealth: The human capital is the wealth of nations and is dependent on the health, nutrition, skills, and knowledge of people.
- Effective strategy: Evidence suggests investing in the well-being of women and children as an effective strategy for improved outcomes for children.
- India’s ranking in Human capital Index: India ranks 116 out of 174 countries as per the Human Capital Index, with a score of 0.49 that indicates a child born in India will be 49 percent productive if provided with complete education and good health.
- Education: Education to children plays a pivotal role in amassing human capital, improving productivity, and economic development. It has been advocated to target the 1000 days’ period from conception to two years of age for improving birth and nutrition outcomes.
Coupling nutrition-specific interventions with nutrition-sensitive programs
- Nutrition-sensitive interventions: Nutrition-sensitive interventions like water, sanitation, and hygiene (WASH) focus on the underlying determinants as poor sanitation can lead to stunting.
- Integrated water and sanitation improvement program: Evidence suggests both short term and long-term reductions in diarrhoea episodes (3-50 percent) through an integrated water and sanitation improvement program in rural India. WASH can bring significant gains in tackling childhood undernutrition and are important determinants of stunting.
- Nutrition of pregnant women and young children: Studies suggest long term benefits on adult human capital and health by improving the nutrition of pregnant women and young children.
- For instance: The first 1000 days of life is the time for rapid growth and development, and lack of good nutrition can lead to lifelong adverse consequences. This period is a critical window of opportunity as stunting sets in during this period and aggravates by the age of two years.
Disparities in Undernutrition Prevalence
- Data (NFHS 5) reveals that India has more stunted children in rural areas as compared to urban areas, possibly due to socio-economic variance.
- Stunting prevalence varies depending on mother’s education and household income,
- There is wide variation among regions, with high rates of stunting in states of Meghalaya (46.5 percent) and Bihar (42.9 percent) while states like Sikkim and Puducherry have lowest at 22.3 percent and 20 percent respectively.
- Notable inter-state and inter-district variation in terms of stunting prevalence.
- Investing in healthcare facilities is crucial for enhancing productivity, economic growth, and security in India.
- Addressing undernutrition is necessary for producing and maintaining a healthy, highly skilled workforce in India.
- Cost-effective investments in child health, nutrition, and education are necessary for improving public health and achieving economic growth in India.
Conclusion
- Healthy human capital is the true wealth of any nation. In India, undernutrition is a significant public health concern that not only affects the well-being of women and children but also has adverse economic implications. Therefore, addressing undernutrition is critical for creating a healthy, skilled workforce, ensuring economic growth and security in India.
Mains Question
Q. What is India’s ranking on the Human Capital Index, and how does investing in the well-being of women and children contribute to economic growth?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: National Champions Model for Infrastructure Development, Advantages and disadvantages
Central Idea
- Emerging economies struggle to provide functional and efficient infrastructure. Infrastructure has become a national aspiration good, a mechanism for job creation, and a necessity. The two biggest constraints on infrastructure provision are cost and public good component. This national champion’s model aims to incentivize private sector participation in infrastructure investments, but it also has its own set of challenges and limitations.
Traditional Financing Approaches and their Limitations
- The traditional approach to financing infrastructure has relied on tax revenues or government borrowing.
- However, this creates a vicious trap as poorer economies generate less tax revenue, which limits infrastructure investment, leading to a further spinoff that affects the growth of the economy and keeps the country poor.
- Increasing public borrowing domestically tends to crowd out private investment, exacerbating the problem.
The Public-Private Partnership Model and its Problems
- The Indian government tried to incentivize private sector participation in infrastructure investment by introducing the Public-Private-Partnership (PPP) model in the early 2000s.
- While the PPP model led to the construction of a lot of infrastructure, it ended in an avalanche of non-performing assets with public sector banks, private sector bankruptcies, accusations of widespread corruption, and a change in government in 2014.
The National Champions Model and its Innovations
- The present government has modified the PPP approach by assigning the bulk of infrastructure provisioning for roads, ports, airports, energy, and communications to a few chosen industrial houses.
- This is the national champions model where the government picks a few large conglomerates to implement its development priorities.
- This model incentivizes national champions to build projects by providing subsidies to cover the costs.
- New aspects of the National Champions Model:
- National champions need control over existing projects with strong cash flows to incentivize investment in projects with low returns and negative cash flows.
- Public association of champions with the government’s national development policy generates a competitive advantage for the champions in getting domestic and foreign contracts.
- Access to some cash-rich projects allows national champions to borrow from external credit markets by using these entities as collateral, which lowers the cost of finance of other.
Benefits of National Champions Model
- Economic growth: National champions can contribute to economic growth by generating revenue, creating jobs, and investing in research and development.
- Strategic importance: The model can help ensure that the country has a strong presence in strategically important industries, such as defense or energy, which can be critical to national security.
- Export competitiveness: National champions can become leaders in their respective markets and compete effectively in global markets, which can increase exports and improve the country’s trade balance.
- Innovation: National champions can invest heavily in research and development, leading to technological advancements that can benefit the broader economy.
- Access to capital: National champions may be able to access capital more easily than smaller companies, allowing them to make larger investments and pursue growth opportunities.
The Problems with the National Champions Model
- Too big to fail: Market and regulatory treatment of conglomerates as too big to fail. This means that these companies are so large and important to the economy that their failure could cause widespread harm to the financial system and the economy as a whole. This opens the door to market hysteria, delayed discovery of problems, and spillovers of sectoral problems into systemic shocks. The recent troubles of the Adani companies in India highlight the potential risks associated with this approach.
- Encouraging market concentration that can be bad for efficiency and productivity: Concentrated markets reduce competition and can lead to higher prices, lower quality, and reduced innovation. When firms have market power, they have less incentive to improve their products or services, reduce costs, or innovate. This can result in lower overall productivity in the economy.
- The risk of turning the country into an industrial oligarchy: An industrial oligarchy is where a small group of powerful and influential conglomerates control a large portion of the economy. This can have negative consequences for economic growth, social mobility, and political stability. An oligarchy may be resistant to change and less responsive to the needs and aspirations of the broader population.
- Uneven playing field: The optics of an uneven playing field in terms of market access and selective regulatory forbearance that can become a significant deterrent for foreign investors.
Conclusion
- While infrastructure is a necessary condition for growth, it is not a sufficient one. Effective demand is the problem, as seen in the power sector, where the inability of the power distribution companies to recover payments was the issue. India is at an inflection point in its development path, and the national champions model has its pros and cons that needs to be analyzed before its consideration.
Mains Question
Q. What is National Champions Model for Infrastructure development in India? Discuss its advantages and disadvantages.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Child marriage, Reasons, Challenges and solutions
Central Idea
- When the Assam government launched a massive crackdown on child marriage, social activists pointed out that the root of the problem, i.e., limited access to education among women, is not being sufficiently addressed. National Family Health Survey (NFHS) data show that higher education levels could play a greater role than wealth in delaying a woman’s marriage. The data also reflect wide variations between the marital age of rural and urban women, and Dalit and upper-caste women.
Does education or wealth play a greater role in determining when a woman gets married?
- Education is significant: Education has a longer history of being significant in delaying a woman’s marriage.
- For instance: Depending on National Family Health Survey (NFHS) data, education has had a steady influence, while poverty has had an increasing influence over time.
- Poverty: Poverty is the greatest determinant of early marriage as the poor do not want to wait due to the increasing demand for dowry. Wealthier people are no longer marrying their daughters early.
Marriage plays a significant role in India as it serves multiple purposes.
- Most significant institution: It is considered the most significant institution for daughters as it fulfills the family’s responsibility towards them. For sons, the responsibility is to settle them in a job, which will hopefully lead to marriage.
- Social identity: Marriage is crucial for social identity, and a woman who remains single is an anomaly because almost everyone gets married.
- Sexual respectability: marriage is essential for sexual respectability as those who wish to have social respect have sexual relationships within marriage.
- Legitimate children: Marriage provides the option to have children, and having a child without a husband is completely unacceptable in the Indian context.
What advantages that families see in getting women married earlier instead of educating them further?
- Dowry: This dowry can be a significant financial burden for families, and getting their daughters married early may be seen as a way to reduce this expense. The more educated a girl, the more the boy has to be educated too and the higher the dowry.
- Transfer of responsibility: Families feel there is the responsibility of protecting her sexually before marriage. And that responsibility gets transferred to the boy’s family. After marriage, the girl goes to live with her husband’s family, so why spend on her education?
- Maintenance of caste and community lines: In some cultures, marrying within one’s own caste and community is essential to maintain social status and cultural traditions. Early marriage may be seen as a way to ensure that women are married within their caste and community and preserve cultural practices.
Women are increasingly getting access to education. Does this result in more empowerment?
- Advantages of Women’s Access to Education:
- Education provides women with knowledge and skills that lead to greater empowerment and the ability to make informed decisions about their lives.
- Educated women are more likely to participate in the workforce, earn higher wages, and have better health outcomes.
- Access to education can challenge traditional gender norms and stereotypes, creating new opportunities for women and girls.
- Education can increase women’s bargaining power within their families and communities, allowing them to negotiate for better living conditions, higher earnings, and greater autonomy.
- Challenges in Women’s Employment
- The female labor force participation rate is low at 25%, and job losses have been especially harmful to women.
- Despite increased access to education, there is a high proportion of educated but unemployed women.
- Women who enter the corporate sector often face hostility or are unable to balance domestic expectations with work demands.
- The conjugal contract between men and women remains largely unchanged, with women assuming the majority of domestic burdens and men often having power over family decisions.
- Impact of Age of Marriage
- Increasing the age of marriage may not automatically lead to greater empowerment, autonomy, or freedom for women.
- While delaying marriage may provide women with more opportunities to pursue education and careers, there is still a significant gender gap in employment and earnings.
- Low and declining employment rates may also result in a greater burden on marriage as a means of economic security.
Why women in SC/ST/OBC communities get married at younger age than even those in rural India?
- Socio-economic factors: Women in SC/ST/OBC communities tend to get married at younger ages than even those in rural areas due to a combination of social and economic factors.
- Sense of social disadvantage: Families who belong to these groups experience a sense of social disadvantage in the marriage market, but they are also often poor, with lower wealth quintiles being disproportionately populated by SC, ST, and OBCs.
- Caste and poverty: There is a fair deal of correlation between caste and poverty in these communities, with many lacking decent work and being vulnerable to violence from those higher in the hierarchy.
- Vulnerability: Girls from these communities are even more vulnerable to such issues, with Dalit girls being particularly susceptible to sexual predators as young upper-caste men feel that they have a right of access.
- Marriage as protection: Marriage can be seen as a form of protection for girls from these communities, but the issue of early marriage is complex and influenced by a range of factors.
Conclusion
- The issue of child marriage in India is complex and deeply rooted in societal norms, poverty, and caste systems. Despite the progress in education and women’s empowerment, there are still challenges. The issue of child marriage requires a comprehensive approach that addresses the underlying societal and economic factors that perpetuate the practice.
Mains Question
Q. Discuss the role of education and wealth in determining the age at which women get married in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Para Forces
Mains level: Paramilitary Forces and their mandate, challenges
Central Idea
- Last month, India observed the day of remembrance for the Pulwama attack that took place on February 14, 2019, which resulted in the death of 40 Central Reserve Police Force (CRPF) personnel. The lesson learned is that there is an urgent need to address the grievances of paramilitary forces in terms of training, morale, and parity with regular armed forces to ensure the effectiveness of these forces in maintaining internal security.
Background
- The Forgotten Dantewada Attack: An earlier attack on April 6, 2010, in which 76 CRPF personnel were killed by left-wing extremists in Dantewada, has faded away from public attention despite being the deadliest attack on security forces in any counter-insurgency or anti-terrorist operations in independent India.
- The Pulwama attack: The attack on February 14, 2019, claimed the lives of 40 personnel of the Central Reserve Police Force (CRPF), India’s largest paramilitary force. The Pulwama attack resulted in an unprecedented public outcry and evoked emotional responses across all sections of society. It is important to remember this incident to prevent a repeat in the future.
Central Reserve Police Force (CRPF)
- Motto: “Service and Loyalty”
- Logo: The CRPF logo features a crossed rifle and a light machine gun over a map of India, with a laurel wreath and the words “Central Reserve Police Force” written in both Hindi and English. The crossed rifles and the light machine gun represent the CRPF’s role in maintaining internal security, while the map of India signifies its national duty.
- Establishment: CRPF is the largest Central Armed Police Force of India. It was established in 1939 as the Crown Representative’s Police (CRP) to assist British rulers in managing unrest and law and order issues. After India gained independence in 1947, it became the Central Reserve Police Force.
- Responsibility: The CRPF is primarily responsible for maintaining internal security, counter-terrorism operations, and assisting the state police in maintaining law and order. It also assists in disaster management and protects vital installations.
- Personnel and deployment: With more than 300,000 personnel, the CRPF is one of the most significant components of India’s internal security apparatus. It operates in a variety of environments, including urban, jungle, and mountainous terrain. The CRPF has also been deployed in international peacekeeping operations, such as in Haiti, Sudan, and Congo.
Challenges Faced by Paramilitary Forces
- Security threats: Paramilitary forces are often deployed in areas where there are security threats such as terrorist attacks, insurgencies, and border conflicts. These threats pose a significant risk to the lives of the personnel, and they have to be constantly vigilant to prevent any untoward incidents.
- Pay and benefits: The Indian Army personnel receive higher pay, better benefits, and retirement benefits compared to paramilitary forces. The Indian Army also has a well-established pension system, while paramilitary forces have a Contributory Pension Scheme (CPS).
- Inadequate infrastructure: These forces often operate in remote areas with inadequate infrastructure, including basic facilities such as food, water, and shelter. This makes it challenging for the personnel to carry out their duties effectively, especially during long deployments.
- Inadequate training: Proper training is essential for paramilitary personnel to carry out their duties effectively. However, due to budget constraints and a lack of resources, training is often inadequate, which can lead to inefficiencies and mistakes during operations.
- De-induction of Army: The deinduction of the Indian Army from certain areas has led to the CRPF (Central Reserve Police Force) and other paramilitary forces being tasked with carrying out hard duties, leading to overstretched personnel and compromised training.
- Stress and mental health: The nature of the job is often stressful, and paramilitary personnel are frequently exposed to traumatic situations that can have long-term effects on their mental health. Unfortunately, mental health resources are often limited, and the stigma surrounding mental health issues can prevent personnel from seeking help.
- Lack of modern equipment: Paramilitary forces require modern equipment and weapons to carry out their duties effectively. However, due to budget constraints and bureaucratic red tape, acquiring such equipment is often delayed, which puts the personnel at risk.
- Armed Forces of the union category: The Delhi High Court order of December 2022 that recognised the paramilitary as a force under the category of ‘Armed Forces of the union’ and underscores the need to address the genuine grievances of the paramilitary personnel.
- Service facilities: The paramilitary force faces discrimination in matters ranging from pension to service facilities.
- Old pension scheme: Former personnel and their families have demanded the old pension scheme for serving members of the paramilitary force.
- Training: The training and morale of paramilitary personnel must be taken care of to maintain optimum performance and effectiveness.
Other key paramilitary and special forces in India
- National Security Guard (NSG): NSG is a federal contingency force tasked with counter-terrorism and special operations. It was established in 1984 and operates under the Ministry of Home Affairs.
- Border Security Force (BSF): BSF is a border guarding force responsible for guarding India’s land borders during peace time and preventing trans-border crimes. It was established in 1965 and operates under the Ministry of Home Affairs.
- Sashastra Seema Bal (SSB): SSB is a border guarding force tasked with guarding India’s borders with Nepal and Bhutan. It was established in 1963 and operates under the Ministry of Home Affairs.
- Indo-Tibetan Border Police (ITBP): ITBP is a specialized mountain force responsible for guarding India’s borders with China. It was established in 1962 and operates under the Ministry of Home Affairs.
- Assam Rifles: Assam Rifles is a paramilitary force responsible for maintaining law and order in the northeast region of India. It was established in 1835 and operates under the Ministry of Home Affairs.
Conclusion
- The observance of Pulwama day should serve as a reminder to avoid a repeat of the tragedy and calls for analysing the lessons learnt and taking corrective measures. It is important to listen to the genuine grievances of the paramilitary personnel to maintain their morale and enhance the security environment of the nation.
Mains Question
Q. Discuss the challenges faced by paramilitary forces In India? What needs to be done to maintain their morale and to ensure the effectiveness of these forces in maintaining internal security?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Same-sex marriage, Issues, constitutional provisions , Read the attached article
Central idea
- Recently, the Supreme Court referred a batch of petitions seeking the legal recognition of same-sex marriages to a Constitution Bench. The Union government has opposed the petitions. Law Minister Kiren said that marriage is a matter of policy to be decided by Parliament and the executive alone.
What is mean by Same-sex marriage?
- 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.
Same-sex marriage in India
- Same-sex marriage is currently not legally recognized in India.
- Section 377 of the Indian Penal Code, which criminalized homosexuality, was struck down by the Supreme Court of India in 2018, which was a landmark decision for LGBTQ+ rights in the country.
- However, there is still no law that allows same-sex couples to legally marry or have any legal recognition of their relationships.
- In its affidavit to the Supreme Court, the government argued that the traditional concept of marriage, consisting of a biological man, woman and child, cannot be disrupted.
- It claimed that recognising same-sex marriages could cause havoc in the system of personal laws.
- As different from many liberal democracies, in India, aspects of marriage, succession and adoption are governed by religious personal laws.
What petitioners are claiming?
- Same-sex marriage as a matter of rights
- Any social policy is liable to judicial interference if rights are violated.
- The petitioners rely on the rights to equality and non-discrimination as laid out in Articles 14 and 15.
- The Constitution prohibits the state from discriminating on the basis of sex.
- Sex has been interpreted by the Supreme Court in Navtej Singh Johar (2018) to include sexual orientation. Granting the right to marry to heterosexual couples and not to homosexual couples clearly discriminates on the basis of their sexual orientation.
- Same-sex marriage is a matter of privacy
- Right to privacy: Supreme Court recognised this right to be part of the right to life and liberty under Article 21 of the Constitution in the celebrated Puttaswamy (2017) verdict.
- What court said on privacy: Privacy includes at its core the preservation of personal intimacies, the sanctity of family life, marriage, procreation, the home and sexual orientation.
- State currently denies this right: The right to privacy entails the right of the citizens to make decisions about their family life and marriage. The state currently denies same-sex couples this right.
- The Special Marriage Act: The Special Marriage Act is a secular law which works alongside religious personal laws. Same-sex marriages can be recognised under the Special Marriage Act. The Act already speaks of marriages between any two persons which are solemnised under it. Any two persons can include two persons of the same sex.
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.
Consider the situation in the United States
- In Obergefell v Hodges (2015), the Supreme Court of the United States held that same-sex couples have a constitutional right to marriage.
- Thirty-one out of the 50 states in the United States have marriage laws that define marriage as between a man and a woman.
Conclusion
- The debate on legal recognition of same-sex marriages in India continues to be a contentious issue, with the government and petitioners presenting opposing views. However, given the complex social, cultural, and legal considerations, any decision regarding same-sex marriage should be carefully evaluated to ensure that it is inclusive and respects individual rights. Ultimately, it is important to arrive at a balanced and just solution that upholds the principles of equality and non-discrimination for all individuals, regardless of their sexual orientation.
Mains Question
Q. What do you understand by same-sex marriage? Describe same sex marriage situation in India by highlighting both the arguments.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Women empowerment, Reforms to thrive Women leadership
Central Idea
- Today the world is home to a transformative generation of 900 million adolescent girls and young women poised to shape the future of work and growth. If this cohort of young women could be equipped with the right resources and opportunities to nurture the 21st century skills, they would become the largest segment of women leaders, change-makers, entrepreneurs, and innovators in history.
- India is home to one of the largest generations of girls and young women, has made significant progress across various domains, such as education, health, digital and financial inclusion, and leadership building, to achieve Sustainable Development Goal 5, which envisions a more gender-equal world by 2030.
- To unleash the gender dividend and create conditions for female leadership to flourish, women at all levels of society must have inclusion in the Information and Communications Technology (ICT), bodily autonomy and safety, shared responsibility within the household, and equal participation in decision-making spaces.
What are the necessary conditions that must be in place for Women leadership to thrive?
- Cultivating Agency:
- Given the socio-economic barriers that adolescent girls confront from their earliest years that the work to cultivate their agency must begin early.
- India’s initiatives across various domains, such as education, health, digital and financial inclusion, and leadership building, to achieve Sustainable Development Goal 5, which envisions a more gender-equal world by 2030.
- Inclusion in ICT:
- Inclusion in Information and Communications Technology (ICT) for women at all levels of society is very important.
- As access to digital technology increasingly becomes an arena of opportunity and basic service, EdTech can bridge the accessibility gap in education through hybrid learning models, even where girls’ access to schooling is restricted by harmful norms.
- STEM Education:
- The prevailing stereotypes that characterize STEM education as a traditionally masculine domain, even though over 43% of Indian STEM graduates are women.
- The gender norms that disproportionately allocate domestic and care responsibilities to women, representation of men as leaders of STEM, finance, and entrepreneurial fields in the public perception, and institutional mechanisms are some of the barriers that explain why increased women’s representation in STEM education does not translate into work participation.
- There is need of inclusion of grade-appropriate STEM, financial education, and entrepreneurship syllabi into the educational curriculum for girls to counter these stereotypes actively.
- Bodily Autonomy and Safety
- Empowering women to make decisions about their bodies and be free from all forms of violence and harassment is very important.
- These basic conditions are critical to enable women and young girls to chart the trajectory of their personal and professional lives.
- Sport for Leadership
- The sporting activities can promote leadership, self-sufficiency, and teamwork. The inclusion of adolescent girls and young women in sports can build their self-confidence, strengthen self-belief, and impart the nuances of teamwork.
- The National Sports Policy and inclusion programs for children from vulnerable communities, which have seen remarkable success.
- Redistribute Care Work
- The backbone of thriving families, communities, and economies largely falls on women, increasing in times of crisis such as the COVID-19 pandemic.
- It is crucial to recognize, reduce and redistribute unpaid care and domestic work, so that women may enjoy economic opportunities and outcomes on an equal footing to men.
- The policies that provide services, social protection and basic infrastructure, promote sharing of domestic and care work between men and women, and create more paid jobs in the care economy, which are urgently needed to accelerate progress on women’s economic empowerment.
Do you know? STEM education
- STEM education refers to a curriculum that focuses on four academic disciplines: Science, Technology, Engineering, and Mathematics.
- STEM education is designed to promote and enhance the critical thinking, problem-solving, and analytical skills of students, while also encouraging their creativity and innovation.
- The curriculum typically integrates these four subjects to show how they are interconnected and applicable to real-world problems.
- STEM education is becoming increasingly important in today’s world, as technology continues to advance and the demand for skilled workers in these fields grows.
Conclusion
- Nurturing the leadership abilities of adolescent girls and young women is crucial for breaking down restrictive gender norms and barriers and accelerating progress across the Sustainable Development Goals. By working together to empower girls and women, we can create a more gender equal world and unlock the full potential of the next generation of female leaders.
Mains Question
Q. What are the necessary conditions that must be established for female leadership to flourish in India?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-china Trade, development and Bilateral Relations
Central idea
- China’s recent developments in steady growth, people’s well-being, opening up, and win-win cooperation, as well as its willingness to strengthen communication and coordination with India, can provide new opportunities for all countries in the world, especially neighbouring countries. importance of China-India relations and their role in facilitating an Asian Century.
China’s focus areas of development
- Modernization: China is currently advancing modernization in all fronts, based on its practices, and a focus on high-quality development.
- Overall development: The country aims to modernize its huge population, ensuring common prosperity for all, material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development.
- New opportunities: China’s development will create new opportunities for all countries, especially neighbouring countries.
The development of China in recent years
- Steady Growth:
- In 2022, China’s economy grew by 3%, and the country added a total of 12.06 million urban jobs.
- The country’s GDP increased to 121 trillion yuan (approximately $18 trillion), registering an annual growth rate of 5.2% over the past five years and an annual growth of 6.2% over the past decade, with GDP increasing by nearly 70 trillion yuan.
- China’s economic strength is steadily reaching new heights.
- People’s Well-being:
- China has historically resolved absolute poverty, with the alleviation of close to 100 million rural residents from poverty.
- Over 70% of the government’s expenditure went toward ensuring people’s well-being.
- Basic old age insurance covers 1.05 billion people, an increase of 140 million. Living standards continue to witness new improvements.
- Opening Up:
- In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 8.6%.
- China’s actual use of foreign capital was up by 8%, and the country remained one of the top destinations for foreign investors.
- The overall tariff level continues to fall, from 9.8% to 7.4%. China’s doors to the outside world are opening even wider.
- Win-Win Cooperation
- In the period 2013-2021, China’s contribution to global economic growth averaged 38.6%, higher than that of G7 countries combined (25.7%).
- More than 100 countries have expressed their support, and over 60 countries have joined the Group of Friends of the Global Development Initiative (GDI) since Chinese President, Xi Jinping, proposed it in a speech at the United Nations General Assembly in 2021.
- Emerged as Representatives: As neighboring and ancient civilizations, China, and India are representatives of developing countries and emerging economies.
- National rejuvenation: Both countries are currently in the process of national rejuvenation and a crucial period of modernization where challenges need to be overcome and problems need to be solved.
- Interests than differences: China and India have far more common interests than differences.
China- India Trade
- China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
- Although there is a trade deficit, India’s import of equipment and materials from China reduces the overall cost of Made-in-India products, benefits Indian downstream industries and consumers, enhances the competitiveness of Indian exports, and in turn facilitates India’s integration into global industrial and supply chains.
Facilitating an Asian Century
- Chinese Foreign Minister recently stated that the development and revitalization of China and India embody a boost to the force of developing countries, which will change the destiny of a third of the world’s population and have a bearing on the future of Asia and beyond.
- This echoes what India’s External Affairs Minister S. Jaishankar had expressed in 2022 that the Asian Century will happen when China and India come together.
Conclusion
- China’s development and its relationship with India are important for the region and the world. Both countries are in the process of modernization and face challenges that need to be overcome. China and India are important trading partners, and their cooperation can facilitate an Asian Century and contribute to peace and stability in the region and beyond.
Mains Question
Q. Provide your insights on the role of China and India in shaping the destiny of the developing countries and their impact on the future of Asia and beyond
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-Italy Bilateral relations
Central Idea
- The recent summit between Italian Prime Minister Giorgia Meloni and Indian Prime Minister Narendra Modi marked the 75th anniversary of diplomatic relations between Italy and India. It also marked a significant turning point in the relations between the two countries, as they have established a strategic partnership for the first time.
- Now strategic partners: India and Italy have decided to elevate the ties to the level of strategic partnership and identified defence as one of the areas where they can start a new chapter.
- Boost to startups: The meet led to the establishment of a ‘Startup Bridge’ between India and Italy.
- Bilateral defence exercise: Another important area of mutual cooperation is defence. They also decided to organise joint military exercises and training courses on a regular basis.
- Enhance people’s mobility: India and Italy also signed a Declaration of Intent on migration and mobility and inked a memorandum of understanding between Rabindra Bharati University, Kolkata, and Italian Consulate General; and Morarji Desai Institute of Yoga and Sarva Yoga International, Italy.
India-Italy Flourishing Partnership
- Bilateral Trade: Italy and India have intensified their collaboration in recent years, resulting in a record figure of around 15 billion euros in 2022, doubling the figure recorded in 2020.
- Five-Year Action Plan: In 2020, a five-year action plan was adopted with a well-defined range of priorities including energy transition, food processing, advanced manufacturing, creative industry, and infrastructure.
- Multilateral Initiatives: Italy has joined all the multilateral initiatives promoted by India, from the Indian Ocean Rim Association (IORA) to the Coalition for Disaster Relief Infrastructure (CDRI), to the International Solar Alliance.
- Cultural Collaboration: Italy and India have enhanced their collaboration in the cultural field, from the heritage front to the creative industry, including fashion, design, cinema, etc.
- Scientific Research and Technology: The partnership between the two countries has registered the launch of 13 new joint projects in scientific research and technology.
- Mobility: In recent years, there has been a significant increase in the flow of Indian students and workers in Italy, where an Indian community that exceeds a figure of 2,00,000 is already actively operating in the Italian economy.
- Health Sector: During the pandemic, Italy and India collaborated by exchanging experiences and practices, with humanitarian initiatives and promoting joint research projects.
- Strategic Partnership: The Joint Declaration approved in the last summit affirms the commitment of the two governments to develop a strategic partnership that will also focus on sectors such as defence, cybersecurity, space, and energy.
- Indo-Pacific and Enlarged Mediterranean: A connection was identified between the Indo-Pacific and the enlarged Mediterranean where Italy is a front-line player in terms of energy security, investments, and commerce.
- Support for G20 Presidency: Italy offered full support to the Indian Presidency of the G20, contributing around issues that were at the centre of Italy’s G20 Presidency in 2021.
- Ukraine Conflict: Italy and India will be engaged in trying to find a cessation of the conflict in Ukraine.
- European-Indian Strategic Partnership: Both the Prime Ministers expressed their commitment to enhancing the European-Indian strategic partnership and their support for the ongoing negotiations for Free Trade Agreements and agreements on investment protection and geographical indication protection.
What makes Italy a crucial partner for India?
- Economic Cooperation: Italy is one of the largest economies in the European Union and is home to several global corporations. India has a growing economy, and both countries have strong economic ties.
- Trade and Investment: Italy is the 13th largest investor in India with around 700 Italian companies having a presence in India. Italian companies are investing in various sectors in India, including infrastructure, energy, automotive, and textiles.
- Cultural Ties: India and Italy share a rich cultural heritage, and their cultural ties go back centuries. Both countries have a long history of art, literature, music, and architecture. Italy is known for its classical art, and India is renowned for its rich cultural diversity.
- Strategic Cooperation: Both have a shared vision of a multi-polar world order, and are committed to promoting peace and security. Both countries work closely on global issues such as climate change, counter-terrorism, and UN reform.
- People-to-People Contacts: Italy and India have a significant number of people-to-people contacts, with a large Indian diaspora in Italy. There are over 150,000 people of Indian origin living in Italy, and they contribute significantly to the cultural, social, and economic fabric of the country. The growing tourism sector is also promoting more significant people-to-people contacts between the two countries.
Conclusion
- The strategic partnership between Italy and India is based on respect for international law, freedom of navigation, and territorial integrity. It aims to strengthen bilateral relations and focus on sectors such as defence, cybersecurity, space, and energy. In these challenging times, the two countries aim to give a strong impulse to their relations based on the common recognition of the value of true friendship and solidarity.
Mains Question
Q. What are the key highlights of the recent visit of Italian Prime Minister Giorgia Meloni to India, and how does it mark a significant turning point in the relations between Italy and India? Also Discuss the factors that make Italy a crucial partner for India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Online Public Hearings and In person Public hearings
Central Idea
- The scale of operations of electricity distribution companies is clear from the fact that their annual revenue requirement is 20% of the Union Budget. The article discusses the importance of public participation in the decision-making process of electricity distribution companies and the role of public hearings conducted by Electricity Regulatory Commissions (ERCs) in this regard. The central ERC recently issued a public notice where it announced that hearings would resume through in-person mode.
- Independent body: ERCs are independent statutory bodies established by the government to regulate the generation, transmission, distribution, and trading of electricity in a particular state or region.
- Role: The primary role of ERCs is to protect the interests of electricity consumers by ensuring that electricity is supplied to them at reasonable and affordable rates while ensuring the financial viability of the electricity sector.
- Powers: ERCs also have the power to issue licenses to power generation and distribution companies, set tariffs, and adjudicate disputes between stakeholders in the electricity sector.
- To ensure transparent framework: ERCs are an essential part of the electricity sector, ensuring that there is a fair and transparent regulatory framework that promotes competition, efficiency, and innovation.
Importance of Public Participation in the decision-making process of electricity distribution companies
- Transparency: Public participation promotes transparency in the decision-making process, It ensures that stakeholders are informed about the decisions being made, the rationale behind them, and the potential impact on the community.
- Accountability: It creates a system of checks and balances that helps ensure that decisions made are in the best interest of the public.
- Improved Decision Making: Public participation can provide DISCOMs with valuable insights and perspectives from the community. This can help improve decision-making by ensuring that decisions are made based on a comprehensive understanding of the issues and the needs of the community.
- Increased Trust: When the public is involved in the decision-making process, it helps build trust between the community and the DISCOM. This can lead to increased support for the decisions made, greater acceptance of the outcomes, and reduced potential for conflict or opposition.
- Community Empowerment: Public participation can empower the community to have a voice in the decisions that affect their daily lives. This can lead to a greater sense of ownership and responsibility for the outcomes, as well as increased engagement and participation in future decision-making processes.
In-person Public Hearings
- Pros of In-person Public Hearings
- Greater sense of community: In-person hearings provide a greater sense of community and allow for face-to-face interactions, which can help build trust and foster dialogue.
- Physical presence: In-person hearings allow participants to physically be present in the room, which can make it easier for them to be heard and have their concerns addressed.
- Better understanding: In-person hearings may be more effective at conveying complex information and data, as participants can ask questions and seek clarification in real-time.
- Increased transparency: In-person hearings can increase transparency as they allow the public to see and hear the proceedings first-hand, and hold regulators and utilities accountable.
- Cons of In-person Public Hearings
- Accessibility: In-person hearings may not be accessible to all members of the public, especially those who are physically unable to attend, live far away, or have other commitments.
- Time-consuming and expensive: In-person hearings can be time-consuming and expensive to organize and attend, which can deter participation and limit the diversity of voices represented.
- Limited participation: In-person hearings may limit participation to those who are comfortable with public speaking or who have the means to travel and attend the hearing, potentially excluding some marginalized groups.
Online Public Hearings
- Pros of Online Public Hearings
- Accessibility: Online hearings are more accessible to a wider audience, as participants can attend from anywhere with an internet connection.
- Convenience and flexibility: Online hearings provide more convenience and flexibility for participants as they can attend from the comfort of their own homes and at their own pace.
- Increased participation: Online hearings may increase participation from diverse groups and those who may not be comfortable with public speaking or traveling to attend an in-person hearing.
- Cost-effective: Online hearings can be less expensive to organize and attend, which can allow for more resources to be dedicated to other aspects of the regulatory process.
- Cons of Online Public Hearings
- Technical difficulties: Online hearings may be subject to technical difficulties, such as poor internet connection or difficulties with the online platform, which can hinder participation and the effectiveness of the hearing.
- Limited sense of community: Online hearings may lack the sense of community that in-person hearings provide, potentially limiting the opportunity for dialogue and relationship building.
- Digital divide: Online hearings may be inaccessible to those who do not have reliable internet access or the necessary technology to participate.
- Privacy concerns: Online hearings may raise privacy concerns, as participants may be uncomfortable sharing personal information or speaking out in a public forum.
What could be the best option?
- A hybrid mode with both in-person and online options is the best approach to ensure quality public participation.
- Moving back to the pre-pandemic practice of only in-person hearings takes away a convenient avenue for consumer engagement and impacts meaningful interactions that are possible in the in-person platform.
- The provision of online mode in addition to in-person hearings would strengthen public participation and plug access gaps, provide flexibility of participation to the citizen, and enable a robust avenue for public participation.
Conclusion
- Public hearings conducted in hybrid mode, with the choice of mode being left to the citizen, are best suited to improving access and ensuring quality public participation. There is a need for institutions to continue to build infrastructure and experience toward online hearings and make improvements in how online hearings are conducted.
Mains Question
Q. What is the role of Electricity Regulatory Commissions (ERCs) in the electricity sector, and why is public participation important in the decision-making process of electricity distribution companies?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Economic indicators, GDP and current trends
Mains level: India's GDP growth
Central Idea
- The National Statistical Office (NSO) has released a new set of data on India’s annual and quarterly national income, providing a final assessment of the COVID-19 pandemic’s impact on the country’s GDP growth. The latest numbers and sector-wise performance, highlighting areas of growth and contraction.
- Advance estimates: NSO’s second advance estimate (SAE) shows a contraction of (-) 5.7% in 2020-21, lower than its first advance estimate (FAE) at (-) 7.7%.
- Benefited sectors: Manufacturing, construction, and financial sectors benefited the most in the revised estimate.
- GDP growth: Real GDP in the COVID-19 year amounted to ₹136.9 lakh crore, higher than the earlier assessment of ₹134.4 lakh crore. GDP grew by 9.1% in 2021-22 and 7% in 2022-23.
- Negative growth in 2020: The compound annual average growth rate between 2019-20 and 2022-23 was 3.2%. Comparison with other countries, including China, Bangladesh, and Vietnam, shows India’s negative growth rate in 2020.
Back to basics: Advanced estimates
- Advance estimates refer to the preliminary projections made by the government regarding the likely economic growth, inflation, or other macroeconomic indicators of a country for a given period. These estimates are usually released a few months before the actual data for the period becomes available.
- Advance estimates are based on various economic indicators such as industrial production, agricultural output, exports, and consumption expenditure, among others. These indicators are used to extrapolate the economic activity for the full period, based on which the government makes its initial projections.
Sector-wise Performance
- Overall GVA in 2022-23 is higher by 11.3% compared to 2019-20.
- Mining and quarrying sector still shows a contraction at (-) 0.3%.
- Trade, hotels, transport, etc., show weak growth of 4.3%.
- Construction sector shows higher-than-average growth at 18.6%.
- Manufacturing sector also shows robust growth at 14.8%.
- Financial, real estate, etc., grew at 14.3%.
- Agriculture sector grew at 12%.
- Government final consumption expenditure (GFCE) grew at 7.4%.
- Gross fixed capital formation and private final consumption expenditure (PFCE) increased by 17.7% and 13.1%, respectively.
Investment and Capacity Utilization
- Gross fixed capital formation to GDP ratio in nominal terms increased to 29.2% in 2022-23 from 28.6% in 2019-20.
- Real investment rates increased to 34% in 2022-23 from 31.8% in 2019-20.
- Estimated incremental capital output ratio (ICOR) decreased to 4.9 in 2022-23 from 8.5 in 2019-20.
- Capacity utilization ratio in the manufacturing sector was only 70.3% in 2019-20, but it increased to 73.5% in the first half of 2022-23.
- Subdued growth implies lower capacity utilization and higher ICOR.
Quarterly Growth and Projections
- Q3 2022-23 saw a decline in real GDP growth to 4.4% from 6.3% in Q2 and 13.2% in Q1.
- Growth rate in Q3 and expected growth rate in Q4 are quite low.
- High frequency indicators point towards improved economic activity.
- PMI manufacturing in January and February 2023 remained above its long-term average.
- PMI services increased to a near 12-year
Conclusion
- the NSO’s latest data on India’s GDP growth provides a final assessment of the COVID-19 pandemic’s impact on the country’s economy. The NSO’s data shows that India’s economy is recovering, albeit at a slower pace, from the COVID-19 pandemic.
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