9 PM Daily Current Affairs Brief – August 1st, 2023

Print Friendly and PDF

Dear Friends,

9 PM Brief is our prime initiatives for the preparation of current affairs. What we are providing in this initiative:

  • Ensure that all relevant facts, data, and arguments from today’s newspaper are readily available to you.
  • We have widened the sources to provide you with content that is more than enough and adds value not just for GS but also for essay writing.

It is our endeavor to provide you with the best content, and your feedback is essential for the same. We will be anticipating your feedback and ensure the blog serves as an optimal medium of learning for all the aspirants.

For previous editions of 9 PM BriefClick Here

For individual articles of 9 PM BriefClick Here

Download Factly and 9 PM Weekly Compilations | Arranged Subject-wise and Topic-wise

Mains Oriented Articles

GS PAPER - 1

Preserving tribal culture: Odisha’s Special Development Councils model is worth emulating

Source: The post is based on the article “Preserving tribal culture: Odisha’s Special Development Councils model is worth emulating” published in The Hindu on 1st August 2023.

Syllabus: GS 1 – Salient features of Indian Society, Diversity of India.

News: The author discusses how tribal cultures are fading due to modern development. The Central government’s development projects don’t consider tribal cultures. The Odisha government’s Special Development Councils (SDCs) initiative helps preserve tribal culture while promoting development.

Why is tribal culture fading in India?

Tribal culture in India is fading due to:

Modern development: Societies adopting global norms overshadow tribal cultures.

Central government projects: These have a one-size-fits-all approach, not considering tribal customs.

Focus on development: Programs like the Aspirational Districts Programme prioritize development over cultural context. For instance, except Odisha, other states follow the Central government’s approach which doesn’t prioritize tribal culture.

This has led to a decline in the richness and diversity of tribal traditions.

How is Odisha government’s Special Development Councils (SDCs) initiative helpful in preserving tribal culture?

The Odisha government’s Special Development Councils (SDCs) initiative aids in preserving tribal culture through:

Languages:

Odisha has over 22 tribal languages. The SDCs promote the use and spread of these languages.

Example: 21 tribal proficiency centres have been set up to educate people about tribal culture and dialect.

Sacred Groves:

These are vital for tribal culture and religion.

Data: 4,500 groves were near extinction. Now, 4,730 groves are protected in nine districts.

Artisan Support:

Recognizing tribal artisans helps in preserving their craft.

Data: 40,000 tribal artisans received ID cards, ensuring both cultural preservation and job opportunities.

Tribal Resource Centres:

They ensure knowledge transfer.

Data: Over 50 centres built in Sundargarh district, with more planned in other districts.

Representation:

The SDCs involve tribes in decision-making, preventing majoritarianism.

Example: The Councils have members from all tribal groups, including Particularly Vulnerable Tribal Groups (PVTGs).

By integrating development with cultural preservation, the SDCs initiative ensures that tribal culture thrives alongside progress.

What should be done?

Adopt the SDCs model: Central government should use Odisha’s SDCs approach for tribal areas.

Focus on Culture: Development projects should prioritize preserving tribal customs.

Inclusive Decision Making: All tribal groups, especially smaller ones, should be involved in decisions.

State Funding: Ensure projects are state funded to cater to local needs.

Expand to Other States: Apply Odisha model in tribal-dominated areas like Madhya Pradesh and Sikkim for effective preservation and development.

Not going to down – urbanisation in India

Source– The post is based on the article “Not going to down” published in “The Times of India” on 1st August 2023.

Syllabus: GS1- Urbanisation

Relevance: Challenges faced by emerging urban centres

News– The surge in India’s daily mean rainfall since the last week of June again showed up the poor state of urban India’s infrastructure.

What are the challenges related to urbanisation in India?

Smaller urban centres are facing more challenges. In emerging urban areas, infrastructure doesn’t exist.

As per Census 2011, there were 7,933 urban settlements.  As per Niti Aayog report in 2021, about 65% of these settlements didn’t have a master plan. Almost half of them continue to be governed as rural entities.

What are the root causes behind these challenges?

First, states have not followed the true essence of the 74th constitutional amendment. It provides for the transfer of the urban planning function to an elected local government.

Secondly, the insufficient delegation of powers has resulted in master plans losing touch with reality. They do not align with the evolving nature of urban settlements. These plans lack flexibility and overly focus on zoning.

Master plans fail to consider the informal nature of India’s urban employment market. Consequently, zoning plans encounter unforeseen growth of clusters linked to informal jobs.

What is the importance of urban areas?

GOI estimated that urbanisation contributed to almost 60% of GDP. Almost 75% of the population increase by 2036 will be due to urban growth.

Way forward-

Master plans play a crucial role in improving the urban living standards.

Achieving this goal involves addressing two key aspects. Firstly, political power needs to be decentralised to urban local governments.

Political executives should have greater ownership and influence over master plans. This involvement can bring a dose of practicality and realism to the planning process.

GS PAPER - 2

A critical lapse in Jan Vishwas Bill

Source: The post is based on the article “A critical lapse in Jan Vishwas Bill” published in Business standard on 1st August 2023.

Syllabus: GS 2 – Issues relating to development and management of Social Sector/Services relating to Health

News: This article discusses the Jan Vishwas Bill passed by Lok Sabha, which amends many provisions, including those in the Drugs & Cosmetics Act. Recently, Indian drug quality was questioned due to several incidents. The new amendments favor manufacturers more than consumers, reducing penalties for producing substandard drugs. The author believes patient safety shouldn’t be compromised for business ease.

About Jan Vishwas Bill

Purpose: Boost ease of living and business by amending provisions.

Changes to D&C Act: Might favor drug manufacturers over consumers.

Quality Issues: 48 brands found substandard; concerns from US FDA and other countries.

Penalty Reduction: Lighter penalties for substandard drug production.

Concerns: Potentially compromises patient safety and India’s drug reputation.

What is the need for Jan Vishwas Bill?

Addressing Over-Criminalization: The existing laws might have been too penalizing, hindering businesses.

Aligning with Business Growth: The need to make India a more attractive business destination while ensuring quality and safety.

Pharmaceutical Industry Concerns: With reported substandard brands and international issues, a revision was deemed necessary.

Enhancing Reputation: Incidents in countries like Gambia, Sri Lanka, and the US FDA’s findings spotlighted the need for legislative action.

Ensuring Consumer Safety: Despite the bill’s potential biases, the overall intent was to safeguard consumers from health risks.

What are the implications of Jan Vishwas Bill?

Simplifies Regulations: Aims to boost ease of living and doing business by amending various provisions.

Potential Bias: Changes to the Drugs & Cosmetics Act might favor drug manufacturers over consumers.

Quality Concerns Highlighted:

Central Drugs Standard Control Organisation found 48 brands to be substandard.

US FDA pointed out issues in Indian factories exporting generics.

Deaths in Gambia and Uzbekistan linked to an Indian-made cough syrup.

Sri Lanka and Nepal raised concerns over Indian drug quality.

Weaker Penalties: Producing substandard drugs may lead to lighter penalties, risking patient safety.

Reputation at Risk: India, known as the pharmacy of the world, might see its reputation damaged.

What should be done?

Strengthen Regulations: Ensure the Drugs & Cosmetics Act prioritizes patient safety over business interests.

Stricter Quality Checks: Address issues like the 48 substandard brands and concerns raised by the US FDA.

Review Penalties: Reconsider Jan Vishwas Bill’s lenient penalties for producing substandard drugs.

Preserve Reputation: Protect India’s status as the “pharmacy of the world” by ensuring high-quality generics.

Balance Business and Safety: Improve business conditions without compromising patient rights and drug safety.

Who’s listening to the teacher? HEI Rankings aren’t

Source– The post is based on the article “Who’s listening to the teacher? HEI Rankings aren’t” published in the “The Times of India” on 1st August 2023.

Syllabus: GS2- Issues related to development and management of education

Relevance: Higher education

News– The article explains the issues related to the ranking system for educational institutions and importance of qualitative methods to assess the quality of education

Why are qualitative methods important to assess the quality of education institutions?

To achieve a well-rounded approach, qualitative research holds equal importance.

Quantitative methods are effective for analysing certain aspects such as faculty research and publications. But, they may not suffice when it comes to evaluating qualitative elements like the quality of teaching.

The quality of teaching is the most important among all the criteria used in rankings to judge the strength of an educational institution. This is particularly relevant for institutions that prioritise teaching in India.

What are the issues with the rankings system of educational institutions?

Certain ranking mechanisms tend to blur the distinction between the quality of teaching and ‘learning outcomes. They overlook the intricate examination of pedagogy.

Most ranking systems fail to adequately capture the subjective aspects of teaching and learning. They tend to prioritise the objective data on an institution’s accomplishments.

Ranking systems mention innovations in teaching methods. But, their approach often remains quantitative and lacks qualitative elaboration.

Teaching is inherently a creative and critical endeavour. It involves a teacher infusing their passion for the chosen subject, combining it with effective pedagogy.

If ranking exercises are merely quantitative, it fails to acknowledge the fundamental creative and critical nature of education.

What are the challenges faced by a teacher in case of overcrowded classrooms?

The recent report by QS rankers highlighted the discouraging faculty to student ratio in Indian higher education institutions.

In such overcrowded classrooms, pedagogy becomes the first and most critical casualty. It  makes it difficult for teachers to effectively deliver their lessons.

The imagination and creativity a teacher brings to the classroom are undermined when faced with an excessive number of students per class.

16th Finance Commission: Explained, pointwise

For 7 PM Editorial Archives click HERE

Introduction

The 16th Finance Commission is due to be set up shortly to determine how much of the Centre’s tax revenue should be given away to States (the vertical share) and how to distribute that among States (the horizontal sharing formula). Many critical changes have taken place since the constitution of the Fifteenth Finance Commission in November 2017 that includes COVID-19 and the subsequent geopolitical challenges. 

What is the Finance Commission?

The Finance Commission is constituted by the President under Article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.  

Two distinctive features of the Commission’s work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the centre and the States respectively and equalization of all public services across the States. 

It is the duty of the Commission to make recommendations to the President as to—   

  1. the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them and the allocation between the States of the respective shares of such proceeds; 
  2. the principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India;
  3. the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats in the State based on the recommendations made by the Finance Commission of the State;
  4. the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Municipalities in the State based on the recommendations made by the Finance Commission of the State;
  5. any other matter referred to the Commission by the President in the interests of sound finance.

Over the years the core mandate of the Commission has remained unchanged, though it has been given the additional responsibility of examining various issues. For instance, the 12th Finance Commission evaluated the fiscal position of states and offered relief to those that enacted their Fiscal Responsibility and Budget Management laws.  The 13th and the 14th Finance Commissions assessed the impact of GST on the economy. The 13th Finance Commission also incentivised states to increase forest cover by providing additional grants. 

Why is there a need for an FC? 

Resolving vertical fiscal imbalance: 

Vertical fiscal imbalance occurs due to the asymmetry in the constitutional scheme of assignment of resources and responsibilities between the central and the state governments.

The central government has been assigned a relatively larger share in the collection of tax revenues, while the state governments have relatively larger expenditure responsibilities. 

Reducing horizontal fiscal imbalance: 

Horizontal fiscal imbalances arise from the inter-state differences in tax bases and due to the varied ground conditions of the states regarding needs and costs of provision of public goods. 

LPG Reforms: 

In the pre-reform period, the Finance Commission’s recommendations were relatively less significant. The Central government had alternative methods to provide compensation to States through plan financing and investments in public sector undertakings (PSUs). 

However, after the reforms, the frequency of new PSU investments decreased, and the Planning Commission was abolished in 2014. Consequently, the Finance Commission has become the primary authority responsible for shaping India’s fiscal federalism. 

What are a few of the successful recommendations made by the Finance Commissions? 

Over the years, Finance Commissions have made various impactful recommendations concerning public finance, governance, and development in India. Here are some successful examples:  

  1. Introducing tax devolution as a major component of vertical transfers, gradually increasing the states’ share from 10% to 42% over time. 
  2. Implementing performance-based incentives for states to promote fiscal discipline, population control, forest conservation, power sector reforms, and other crucial initiatives. 
  3. Establishing disaster relief funds for states and local bodies to enhance their preparedness and response capabilities for natural calamities. 
  4. Introducing grants for local bodies to strengthen their fiscal autonomy and accountability in delivering essential services. 
  5. Introducing grants for specific sectors like health, education, justice delivery, and statistical systems, addressing critical gaps and needs in these areas.

What are the challenges that Finance Commissions face? 

Lack of compliance: Both the Union and state governments sometimes overlook or ignore the recommendations. They may not agree with them or have other priorities. 

Complex reforms: Some of the suggested reforms can be complicated to implement. They require significant changes in government processes and policies. 

Resource constraints: The governments, particularly at the state level, might face resource constraints. This can make it hard for them to put the recommendations into practice. 

Policy prioritization: The governments often focus more on resource distribution. The recommended reforms may not align with their policy priorities. 

Conditionalities: Some states object to the conditions attached to grants. They believe these restrictions limit their expenditure options. 

Insufficient data: There can be a lack of necessary data to implement the recommendations. For instance, the 13th FC pointed out statistical gaps that hindered implementation. 

Performance-Based Grants: The 15th FC proposed performance-based grants. However, this requires the establishment of clear and efficient performance metrics, which can be challenging. 

What are some novel challenges before the 16th Finance Commission? 

Impact of Covid-19 Pandemic: The 16th Finance Commission must consider the repercussions and consequences of the pandemic on the fiscal condition and performance of both the Central and State governments. Additionally, the Commission needs to factor in their respective expenditure requirements and priorities. 

The GST Council: The decisions made by the GST council can impact on the revenue projections and calculations undertaken by Finance Commissions when distributing fiscal resources. 

What are the key areas that the 16th FC should prioritize? 

Cesses and surcharges:  

The effective share of States in the Center’s gross tax revenues (GTR) declined from nearly 35% during 2015-16 to 2019-20, to approximately 31% between the fiscal years 2020-21 and 2023-24 (BE). 

This decline was primarily attributed to a significant increase in the share of non-shareable cesses and surcharges in the Center’s GTR which increased to 18.5% of the GTR during 2020-21 to 2023-24 (BE) from 12.8% during 2015-16 to 2019-20. 

Horizontal distribution: 

Historically, Finance Commissions have struggled to determine how much a state’s deficit is due to its fiscal incapacity and how much is due to fiscal irresponsibility.  

They have tried to modify the distribution formula to support deficit States without penalizing responsible States which is impossible as the total funds for distribution are limited. Every horizontal distribution formula has been criticized as being inefficient or unfair or both.  

The concept of horizontal distribution inherently involves wealthier States providing compensation to poorer States. Ensuring this process doesn’t exacerbate the divide between the rich and poor states presents a challenge for the government when defining the terms of reference for the Finance Commission.  

Per capita income criteria:  

The share of individual States in the Centre’s divisible pool of taxes is determined by a set of indicators. Per capita income is one of the criteria. Per capita income is the distance of a State’s per capita income from a benchmark. It is usually determined by the average per capita income of the top three States. 

This criterion ensures relatively larger shares for relatively lower income States. At present, it has the highest weight of 45%. Many of the richer States want a lower weight for this criterion.  

But it is essential to consider the requirements of the lower-income States. These States will have a greater contribution to India’s ‘demographic dividend’ in the future. 

Restraining freebies: 

In theory, the restraints imposed by the Fiscal Responsibility and Budget Management (FRBM) Act should have acted as a check on populist spending.  

But governments have found inventive ways of raising debt without it appearing in the budget books. 

The 16th Finance Commission should lay down guidelines on the spending on freebies in the interest of long-term fiscal sustainability. 

Equalisation provision: 

It is essential to give priority to equalising the provision of education and health services in the overall framework of resource transfers. 

Resource allocation to individual States could be guided by the equalisation principle, by utilising a limited number of criteria such as population, area, and distance. 

Debt burden of centre and states: 

The combined debt-GDP ratio of central and State governments peaked at 89.8% in 2020-21. Centre’s debt-GDP ratio is 58.7%, and it is 31%.for states. 

These numbers show improvements. But it was still above the corresponding FRBM norms of 40% and 20%. 

What should be the way forward? 

The Finance Commission should make recommendations that are simpler and more practical. It should also work with governments to understand and overcome their challenges. 

Governments should prioritize these recommendations, gather needed resources, adjust grant conditions, and fill data gaps. 

The 16th Finance Commission should lay down guidelines for when cesses and surcharges might be levied. It should suggest a formula to cap the amount that can be raised. 

A mechanism is necessary for Finance Commissions to reevaluate their figures in response to the decisions made by the GST Council, or vice versa. 

A loan council can be set up. It was recommended by the Twelfth Finance Commission. It should keep a watch on the loan magnitudes and profiles of the central and State governments. 

The 16th Finance Commission should take a firm stance on States adhering to fiscal deficit limits. It can offer incentives to States that maintain fiscal discipline and penalties for those exceeding the fiscal deficit limits. 

Sources: The Hindu (Article 1 and Article 2), Indian Express

GS PAPER - 3

Success with chips will take much more effort

Source: The post is based on articles

“Success with chips will take much more effortpublished in Live Mint on 1st August 2023 and

Chip tactics: on India’s bid to attract major global chip manufacturerspublished in The Hindu on 1st August 2023.

Syllabus: GS 3 – Industrial Policy

Relevance: challenges associated with establishing semiconductor industry in India

News: Taiwan has been a cause of tussle between China and the West, due to its significance in manufacturing advanced microchips for digital devices. India has also entered into the race to become a supplier of advanced microchips.

How is India trying to become a supplier?

Despite the setbacks faced by India in failed Foxconn-Vendanta venture, the PM has still taken efforts to move ahead to attract investment for the establishment of semicon fab units.

At the Semicon India 2023 conclave, PM offered 50% financial backing to companies looking to establish chip manufacturing facilities in India including offer for low corporate tax rates.

US-based companies like AMD and Micron have shown interest in investing in India to cover their supply risks. However, looking at the the challenges, it remains uncertain if India can become a significant global player in the chip industry.

What are the challenges with India in becoming a leader in the semiconductor industry?

Lack of Capabilities: Chips are of various kinds and manufacturing of sophisticated chips is dominated by Taiwan Semiconductor Manufacturing Company (TSMC).

While a few other companies can produce these chips, catching up with TSMC’s capabilities is challenging.

Supremacy of the Advanced Economies: The US has shifted away from free trade and adopted an inward industrial policy, under the Chips Act to enforce technology denial to China. China also has its local chip fabrication projects.

The U.S. has also announced $52 billion in financing support and drawing over $200 billion in commitments. Intel alone has committed $80 billion in investments across the European Union.

In India, a $10 billion production-linked incentive scheme was introduced, however, a $20 billion venture by Vedanta and Foxconn failed.

Therefore, while India has an opportunity to establish a modest chip-making ecosystem, becoming a global supplier would remain a challenging task given the geo-strategic interests of the advanced economies.

Must Read: Semiconductor manufacturing in India: significance and challenges

What can be the way ahead?

Diplomacy: Diplomacy could play a significant role in India’s bid to join the global chip race. Indian Foreign Minister S. Jaishankar encouraged global chip investors to optimize globalization by investing in chip fabrication units in India, combining the advantages of offshore production with risk reduction goals.

However, India’s best chance of becoming a major player in the chip industry lies in its own R&D efforts.

Efficient Policy Framework: To encourage semiconductor investments and attract other investors, India must support Micron through its incentives. Additionally, India also needs a stable operating environment with predictable policies framework and trade linkages with global markets to attract investors.

In the wilderness: Forest Bill defeats purpose of the law

Source: The post is based on the article “In the wilderness: Forest Bill defeats purpose of the law” published in Business standard on 1st August 2023.

Syllabus: GS 3 – Conservation, environmental pollution and degradation, Environmental Impact Assessment

News: Last week, the Lok Sabha passed the Forest Conservation (Amendment) Bill, which makes significant changes to the original law.

What are the major changes to the Forest Conservation (Amendment) Bill?

Renaming the law in Hindi: This might exclude non-Hindi speaking regions, especially the northeast.

Exemptions for Forest Land:

Alongside rail lines or public roads leading to habitation or amenities up to 1,000 sq. metres.

Within 100 km of international borders for “national importance” projects.

Up to 10 hectares for security-related infrastructure.

Up to 5 hectares in areas with left-wing extremism.

Land not marked as forest on government records after October 25, 1980.

Limiting the Act:

Only applies to land notified before October 25, 1980. This challenges the 1996 Supreme Court’s Godavarman judgment.

Definition Changes:

Includes man-made constructions like zoos, safari parks, and eco-tourism under forestry activities.

Power to Central Government:

The Bill gives more powers to the central government, even though forests were included in the Concurrent List of the Constitution.

What are the implications of this change?

Decreased Forest Cover: Exemptions can reduce India’s forest area.

Biodiversity at Risk: Relaxations threaten fragile ecosystems, like the Aravalli hills.

Indigenous Communities: Changes may infringe on the land and rights of these communities, especially in the northeast and central India.

Legal Conflicts: Limits challenge the 1996 Supreme Court’s Godavarman judgment.

Zoos and Parks: They aren’t natural forests but are now under forestry activities.

Tensions in Governance: More central government power could strain relations with states.

The debate on data

Source: The post is based on the article “The debate on data” published in “The Hindu” on 1st August 2023.

Syllabus: GS3 – Indian Economy and issues relating to planning, mobilization of resources, growth development and employment.

News: The author discusses concerns over India’s statistical system and the accuracy of its data. Once admired globally, the system’s reliability has declined. There are issues with data credibility, multiple agencies providing conflicting data, and delays in publishing essential data. The author emphasizes the need for an overhaul to provide credible data for better policymaking.

What are the major issues with India’s statistical system?

Major issues with India’s statistical system:

Data Credibility:

Surveys, like household ones, face credibility questions.

Concerns about samples selected and non-response from households.

EAC-PM paper says urban data isn’t captured well.

Conflicting Data Sources:

Different agencies give different numbers for the same indicators.

Example: Manufacturing data from the Ministry of Corporate Affairs’ MCA21 portal differs from the Annual Survey of Industries.

A 2019 report found 36% of MCA21 companies, used for GDP, were not traceable or classified properly.

System Competence:

Delays in conducting and publishing surveys.

Example: Processed data of completed surveys withheld, hindering assessments of poverty.

Macroeconomic data like wholesale price series and consumer price index are overdue for revisions.

Data Non-availability:

2021 Census yet to happen.

Policymakers use thin samples, like NITI Aayog’s 2023 index based on 6 lakh households, while India has over 30 crore households.

What should be done?

Improve Data Credibility:

Use realistic samples to reflect the transforming economy.

Re-examine definitions, like ‘urban’, to ensure accuracy.

Standardize Data Sources:

Address issues like the MCA21 portal’s glitches and inaccuracies.

Reduce conflicting data from different agencies.

Enhance System Competence:

Timely conduct and publication of surveys.

Revise outdated macroeconomic data series.

Transparent Data Dissemination:

Move beyond dashboards for clear data sharing.

Review Past Recommendations:

Revisit reports, like the Rangarajan Committee Report (2001), to assess and implement past suggestions.

Recalibrating India’s clean cooking strategy

Source– The post is based on the article “Recalibrating India’s clean cooking strategy” published in “The Hindu” on 1st August 2023.

Syllabus: GS3- Infrastructure: Energy

Relevance: Issues related to cooking fuels

News- The article explains the issues related to LPG adoption in India and need for alternate clean cooking fuels.

What are efforts by the central government to improve LPG adoption in poorer and rural households?

The Grameen Vitrak Yojana was launched in 2009. With its help, the rural distributor base has grown from 18% to 60% of the total LPG distributor base today.

The Pradhan Mantri Ujjwala Yojana has provided more than 9.5 crore new households with LPG connections since 2016.

What are issues with LPG adoption in India?

LPG consumption saw an absolute reduction in FY23 after years of steady growth.

As per Council on Energy, Environment and Water data, the share of Indian households using LPG as the primary cooking fuel had risen to 71% in 2020 from 33% in 2011.

However, COVID­19 pandemic, the Russian invasion of Ukraine and the resulting volatility in crude and product prices on the other, have impacted universal use of LPG in Indian households.

In 2020, subsidy for LPG consumption was withdrawn for all consumers. Average refill rates for active non­-PMUY consumers are in slow decline. 40% of PMUY consumers get two or less refills in a year now.

India’s dependence on imported LPG has steadily increased to over 64% in FY23 .

Way forward-

India’s clean cooking policy must adopt clean­ cooking technologies. LPG­ only strategy needs  a relook. Electric cooking, including induction cooktops, can be adopted.

Rural households have the potential to switch some of their cooking requirements to electricity. According to a study conducted by CEEW, cooking with electricity remains more cost-effective than using LPG even at a high tariff of ₹8 per unit of electricity.

In urban areas, around 10% of households already employ electric appliances for their cooking needs. They can set an example for the larger transition in rural regions.

One possible approach is gradually increasing LPG prices beyond a certain threshold. This strategy could displace LPG in higher consumption groups. It will create a demand for new e-cooking technologies and models, and trigger a domino effect of adoption.

The initial demand from t could drive the growth of the domestic manufacturing ecosystem for e-cooking technologies.

To support this transition, targeted assistance should be provided to manufacturers. They can be encouraged to focus on efficiency and design catering to the needs of Indian households.

There is a requirement for financial support and business strategies that recognize the significance of India’s clean cooking shift by taking into account its positive impact on climate and air quality.

Express View on India’s economy: Sweet and sour

Source– The post is based on the article “Express View on India’s economy: Sweet and sour” published in the “The Indian Express” on 1st August 2023.

Syllabus: GS3- Indian economy and growth

Relevance: Growth prospects of Indian economy

News- The article explains the present economic scenario

Which indicators show a favourable economic situation?

The IMF has recently upgraded its projection for the country’s economic growth to 6.1%. Inflation has been kept below the upper limit set by the central bank’s inflation targeting framework.

India’s foreign exchange reserves are at approximately $600 billion. The government has also successfully maintained its investment in infrastructure development throughout the nation.

MNCs are increasingly considering India as a viable option in their business strategy, often referred to as the “China plus one” approach.

What are challenges for economic growth?

Economic growth has been uneven, leaving significant segments of the population with limited benefits. Lower sections have not experienced substantial improvements, especially after the Covid pandemic.

Several indicators show signs of distress. Real wages in rural areas have remained nearly stagnant, and more households are resorting to work opportunities provided by the MGNREGA compared to pre-pandemic levels.

FMCG companies have not witnessed significant volume growth in consumer staples. Two-wheeler sales remain below pre-Covid levels, and non-suburban railway traffic has declined.

Way forward-

Complacency is not an option. While some countries have experienced periods of growth, only a small subset has achieved sustained high growth rates over several decades.

According to a recent study conducted by economists at the RBI, the Indian economy must maintain a growth rate of 7.6 per cent over the next twenty-five years to attain high-income status by 2047.

The policy framework must be designed with the aim of enhancing the country’s growth prospects over the medium to long term. This calls for focused and urgent action to ensure progress in the desired direction.

Prelims Oriented Articles (Factly)

Sorry, there are no articles today from this source

Blog
Academy
Community