General Studies Paper -3 

Context: Recent Budget has recognised cities as the growth hubs and offered many options and opportunities for the planned development and the growth of cities, as the ever-growing pace of urbanisation in India calls for sustained investments, with a vision and determination.

Recognizing the Urban Imperative

• India’s urban landscape is undergoing a profound shift. With approximately 50 crore people residing in cities — accounting for about 36% of the country’s population — the need for thoughtful planning, investment, and vision has never been more critical.

Challenges and Related Solutions in Urban Transformation Strategies in India

• Rapid Urbanisation: India’s urban population has been growing steadily at a rate of 2% to 2.5% annually. As more people move to cities, managing this rapid urbanisation becomes a critical challenge.
  • Balancing infrastructure development, housing, and services to meet the needs of a burgeoning population is no small feat.
• Infrastructure Deficits: Many Indian cities grapple with inadequate infrastructure—be it water supply, sanitation, roads, or public transport. The core infrastructure requirements—water supply, sewerage systems, and roads—are essential for sustainable urban growth.
  • Initiatives like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) aim to address these gaps, but sustained investment and efficient execution are crucial.
• Housing Shortages: Providing affordable housing remains a persistent challenge. The PMAY has made significant strides, but the demand still outstrips supply.
• Slums and Informal Settlements: A significant portion of the urban population lives in slums and informal settlements. These areas lack basic amenities and often face issues related to health, safety, and sanitation.
  • Transforming these settlements into sustainable neighbourhoods is a formidable task.
• Environmental Sustainability: Urbanisation puts immense pressure on natural resources and ecosystems.
• Governance and Institutional Challenges: Effective urban governance requires coordination among multiple agencies—local bodies, state governments, and central authorities.
  • Strengthening institutions, improving transparency, and decentralising decision-making are critical aspects of successful urban transformation.

Focus Areas Highlighted in Budget

• Housing Solutions: The Pradhan Mantri Awas Yojana (Urban) has been instrumental in providing housing units for the Economically Weaker Sections (EWS) and Middle Income Groups (MIG).
  • The recent budget proposes support for constructing an additional one crore housing units in urban areas, with a substantial investment of ₹10 lakh crore. Interest subsidies will facilitate affordable loans for beneficiaries.
  • The budget addresses the housing needs of migrant workers by introducing new rental housing options in partnership with the private sector. These dormitory-style accommodations aim to provide decent living conditions close to industrial workplaces.
• Core Infrastructure Development: Water supply, sanitation, roads, and sewerage systems are essential for urban well-being. The AMRUT allocates ₹8,000 crore for these purposes. Additionally, the availability of the Viability Gap Funding (VGF) window encourages public-private partnerships (PPP) in core infrastructure projects.
• Urban Planning and Design: Transforming low-density areas into high-density mixed-use developments is crucial.
  • It involves vertical mixed-use buildings, green spaces, pedestrian-friendly designs, diverse housing options, and adaptive reuse of existing structures.
  • Sustainability, community engagement, and phased development play pivotal roles in creating livable and resilient cities.
• Paradigm Shift towards Sustainability: Urban development strategies need to shift towards sustainability and ecological urbanisation. Balancing economic growth with environmental conservation is essential for long-term prosperity.
• Investment and Implementation: Since 2014, India has witnessed a remarkable 12-fold increase in investments in urban development, totaling ₹07 lakh crores.
  • It reflects the government’s determination to enhance urban infrastructure and quality of life.
• Environmental Sustainability: Balancing economic growth with environmental conservation is essential for long-term prosperity. Urban development strategies need to shift towards sustainability and ecological urbanisation. It includes efficient waste management, green spaces, and clean energy initiatives.
• Role of Citizens: The success of any urban transformation strategy hinges on citizen participation. Engaging citizens in decision-making, planning, and implementation remains the bedrock of effective urban development.
  • After all, cities are not just concrete structures; they are vibrant ecosystems shaped by the people who inhabit them.
• Inclusive Development: Cities must cater to diverse populations, including vulnerable groups. Ensuring equitable access to services, education, healthcare, and employment opportunities is vital.
• Transit-oriented development (TOD) plans, which maximise accessibility to public transport, can contribute to inclusivity.

Related Government Initiatives and Strategies

• National Urban Policy Framework (NUPF): The NUPF is a comprehensive policy framework that aims to guide urban development in India. It covers various dimensions, including urban planning, economy, physical and social infrastructure, housing, transportation, finance, governance, and environmental sustainability.
  • It recognises the need for an infusion of approximately US $1.2 trillion in urban infrastructure by 2030 to meet the growing demands of urbanisation.
  • Key Components of NUPF are Urban Planning, Urban Economy, Physical Infrastructure, Social Infrastructure, Housing & Affordability, Transportation & Mobility, Urban Finance, Urban Governance and Environmental Sustainability.
• National Rural Infrastructure Development Agency (NRIDA): While NRIDA primarily focuses on rural infrastructure, it’s worth mentioning. The agency works to set high technical and management standards for rural roads, ensuring sustainable management of the rural road network.

Way Forward and Conclusion: Building Thriving Cities

• Data-Driven Decision-Making: Lack of accurate and timely data hampers informed policy formulation. Urban information systems need improvement to support evidence-based planning and monitoring.
• Financial Sustainability: Funding urban projects and maintaining infrastructure require sustainable financial models. Value capture financing (VCF), property taxes, and innovative revenue sources are essential for long-term viability.
• Balancing Economic Growth and Livability: While economic growth is crucial, cities must also prioritise residents’ quality of life. Brownfield redevelopment—transforming existing urban spaces — can play a pivotal role in achieving this balance.
• As India continues its urban journey, thoughtful strategies, sustainable practices, and active citizen involvement will pave the way for thriving cities that balance growth, well-being, and environmental stewardship.

General Studies Paper -3 

Context: Recent Union Budget for 2024-25 aims to provide ₹1.48 lakh crore for education, employment and skilling in the country.

Budget Allocations (Overall Vision)

• The budget’s emphasis on education, employment, and skilling reflects the government’s commitment to building a robust and inclusive economy.
• It aims to lead India toward strong development and all-round prosperity.

Education Initiatives in Budget 2024-25

• It aims to facilitate access to quality education and empower our youth with the necessary skills for the future.
• Higher Education: Financial support for loans up to ₹10 lakh will be provided to youth pursuing higher education in domestic institutions, especially those who haven’t previously benefited from government schemes and policies

Prime Minister’s Package for Employment and Skilling

• Scheme A – First Timers: First-time employees registered with the EPFO will receive one month’s salary (up to ₹15,000) in three instalments.
• Scheme B – Job Creation in Manufacturing: Incentives will be provided directly to both employees and employers based on their EPFO contributions during the first four years of employment.
• Scheme C – Support to Employers: The government will reimburse up to ₹3,000 per month for two years towards EPFO contributions for each additional employee.
• Additionally, a new centrally sponsored scheme aims to skill 20 lakh youth over five years, upgrading 1,000 Industrial Training Institutes.

Employment and Skilling

• Prime Minister’s Package for Youth: Budget announced a comprehensive package aimed at facilitating employment, skilling, and other opportunities for 4.1 crore youth over the next five years. This package has a central outlay of ₹2 lakh crores.
• Centrally-Sponsored Scheme for Skilling: The government has launched a new centrally-sponsored scheme to skill 20 lakh youth over the next five years.
• This collaborative effort with states and industry will focus on imparting relevant skills to enhance employability.
• Model Skilling Loan Scheme: The existing model skilling loan scheme will be revised to facilitate loans of up to ₹5 lakh. This will encourage more individuals to pursue vocational training and skill development.
• Skill Development and Upgradation: As part of this budget, 1,000 Industrial Training Institutes (ITIs) will be upgraded. Skill development remains a critical pillar for economic growth and individual empowerment.
  • Additionally, a plan called ‘Purvodaya’ will be formulated to promote all-round development in the eastern region of India, covering states like Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
• PM Garib Kalyan Anna Yojana Extension: The government has extended the PM Garib Kalyan Anna Yojana for five more years. This scheme benefits a staggering 80 crore people in the country, ensuring food security for vulnerable populations.
• Focus on Marginalised Groups: As mentioned in the interim budget, there is a renewed focus on supporting the poor, women, youth, and farmers. The budgetary provisions aim to uplift these sections of society through targeted interventions.
• Rural Development and Infrastructure: A substantial provision of ₹66 lakh crores has been allocated for rural development, including rural infrastructure.
  • Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched to provide all-weather connectivity to 25,000 rural habitations.

Conclusion

• Budget 2024-25 reflects a holistic approach, addressing employment, skill development, and economic growth. It aims to create ample opportunities for all segments of society, from youth to women to the middle class.
• It underscores the critical role education and skill development play in shaping India’s future. By investing in our youth and promoting employment opportunities, the government aims to create a more resilient and prosperous nation.

General Studies Paper -3 

Context: The Karnataka government plans to introduce legislation for gig workers, seen as a necessary and positive step.

About

• The Karnataka Bill aims to make platforms accountable by mandating transparency about algorithmic parameters and worker data usage, thereby reducing algorithmic control.
• Karnataka’s draft Bill mandates fair contracts, income security, and the right to refuse work without penalties, aiming to balance worker rights against platform control.
• The Karnataka Bill acknowledges the full-time nature of gig work by introducing mandatory social security provisions.

About the Gig Workers

• The gig economy in India is experiencing rapid growth, driven by technological advancements, urbanization, and a young, dynamic workforce.
• The gig economy encompasses a wide range of jobs, from high-skilled roles in IT and finance to low-skilled tasks like delivery and ride-sharing services.
• Gig workers, who engage in temporary, flexible jobs often facilitated by digital platforms, are becoming a significant part of the labour market.

Present Status

• According to NITI Aayog’s indicative estimates based on national labour force survey data, in 2020–21, 77 lakh (7.7 million) workers were engaged in the gig economy .
• As per the Economic Survey 2023-24, the gig workforce is expected to expand to 2.35 crore (23.5 million) and form 6.7 per cent per cent of the non-agricultural workforce or 4.1 per cent of the total livelihood in India by 2029–30.

Opportunities

• Flexibility: Gig workers enjoy the flexibility to choose their working hours and projects, which can lead to a better work-life balance.
• Additional Income: For many, gig work provides an additional source of income or a primary livelihood, especially in urban areas where traditional job opportunities may be limited.
• Skill Development: Gig work often requires workers to develop new skills and adapt to different roles, enhancing their employability in the long run.

Challenges

• Lack of Social Security: Gig workers often lack access to social security benefits such as health insurance, retirement plans, and paid leave.
  • This makes them vulnerable to economic uncertainties.
• Income Instability: The income of gig workers can be highly variable, depending on the availability of work and the rates offered by platforms.
• Regulatory Issues: The legal and regulatory framework for gig work is still evolving.
  • Workers are subject to algorithms dictating hours, tasks, and performance metrics, leaving them feeling controlled rather than autonomous.

Government Initiatives and Recommendations

• The Indian government has recognized the importance of the gig economy and is taking steps to support it.
• The Code on Social Security (2020) marks a significant advancement by expanding the scope of social security benefits to encompass gig and platform workers
• The NITI Aayog report recommends several measures to harness the potential of the gig sector:
  • Access to Finance: Developing financial products tailored for gig workers to help them manage their income and investments.
  • Skill Development: Implementing platform-led, outcome-based skilling programs to enhance the capabilities of gig workers.
  • Social Inclusion: Promoting gender sensitization and accessibility awareness programs to ensure inclusivity in the gig workforce.
  • Social Security: Extending social security measures in partnership with platforms, as envisaged in the Code on Social Security 2020.
• States like Rajasthan and Karnataka are leading with legislation for gig worker rights, emphasizing state roles in ensuring worker protections.

Suggestions and Way Forward

• The gig economy in India is poised for significant growth, offering numerous opportunities for workers and businesses alike.
• However, addressing the challenges related to social security, income stability, and regulatory frameworks is crucial for the sustainable development of this sector.
• With the right policies and support, the gig economy can become a cornerstone of India’s future labor market, driving innovation and economic growth.
  • There is a need for policies that ensure fair contracts, income security, and transparency in algorithms used by digital platforms

General Studies Paper -3 

Context: The Supreme Court pronounced a split verdict on the validity of the Centre’s 2022 decision granting conditional approval for environmental release of genetically modified (GM) mustard crops.

About

• In 2022, the Genetic Engineering Appraisal Committee (GEAC)— a statutory body under the Ministry of Environment, Forest and Climate Change and regulator of genetically modified organisms in the country— recommended the environmental release.
• A subsequent decision was taken approving the environmental release of transgenic mustard hybrid DMH-11, a variety of GM mustard.
• In its recent judgment, the SC asked the Centre to formulate a national policy with regard to GM crops for research, cultivation, trade and commerce in the country.
• The case would now be referred to a three-judge Bench to be constituted by the Chief Justice of India.

What are GM crops?

• Crops that have undergone genetic engineering processes to alter their DNA are referred to as genetically modified crops.
• This alteration is done to introduce desirable traits such as resistance to pests or herbicides, improved nutritional content, or increased yield.
• The process of creating GM crops typically involves: identification of desired traits, isolation of genes, insertion into crop genome, and expression of the trait.
• The techniques used in GM crops are: gene guns, electroporation, microinjection, agrobacterium etc.
• The types of modification are: transgenic, cis-genic, subgenic and multiple trait integration.
• The main trait types in GM crops are herbicide tolerance (HT), insect resistance (IR), Stacked traits etc.

Indian Scenario in GM crops

• Bt Cotton: In 2002, the GEAC had allowed the commercial release of Bt cotton.
  • Bt cotton has two alien genes from the soil bacterium Bacillus thuringiensis (Bt) that allows the crop to develop a protein toxic to the common pest pink bollworm.
  • It is the only GM crop that is allowed in India.
• Many varieties of GM crops are under different stages of development, like Bt brinjal and DMH-11 mustard.

Regulatory framework in India

• The Genetic Engineering Appraisal Committee (GEAC): It under the Ministry of Environment, Forest and Climate Change (MoEF&CC), is responsible for the assessment of proposals related to the commercial release of GM crops.
• Acts and rules that regulate GM crops in India are:
  • Environment Protection Act, 1986 (EPA)
  • Biological Diversity Act, 2002
  • Plant Quarantine Order, 2003
  • GM policy under Foreign Trade Policy
  • Food Safety and Standards Act, 2006
  • Drugs and Cosmetics Rule (8th Amendment), 1988.

Need for GM crops

• Food Security: Genetically modified crops can improve yield, build resistances to pests, flood, frost, drought etc.
• Sustainable food system: Crops can also be modified to reduce carbon emissions and boost the sustainability of food production.
• Higher Productivity: With GM crops it is possible to produce more food from less area and with less chemical pesticides and fertilizer.
• GM crop production uses only about 10% of the land non-GM crop production uses.
• Nutritional Security: Genetic modifications can enhance the nutritional content of crops.
• Meeting Consumer Preferences: GM crops can be tailored to meet consumer preferences, such as crops with longer shelf life, enhanced flavor, or specific cooking qualities.

Reasons for opposition of GM crops

• Unintended side effects: The long-lasting effect of GM crops is yet to be studied and thus they should not be released commercially.
  • Genetic modification can bring changes that can be harmful to humans in the long run.
• Threat to biodiversity: Some crops have been engineered to create their own toxins against pests. This may harm non-targets such as farm animals that ingest them.
• Health risks: GM crops are modified to include antibiotics to kill germs and pests. These antibiotic markers will persist in human body after consumption and will render actual antibiotic medications less effective over a period of time, leading to superbug threats.
• Social and economic issues: There are concerns about multinational agribusiness companies taking over farming from the hands of small farmers.
• Dependence on GM seed companies could prove to be a financial burden for farmers.
• Public concern: People in general are wary of GM crops as they are engineered in a lab and do not occur in Nature.

Way Forward

• The environmental release of DMH-11 marks the beginning of a new era in self-reliance and sustainability in agriculture. This will help to achieve the target of Zero Hunger by 2030.
• Governments must address the problems brought on by GM crops, particularly in the areas of safety testing, legislation, industrial strategy, and food labeling.

General Studies Paper -3 

Context: The Finance minister tabled the Economy survey in the Parliament, a day ahead of the Budget presentation.

About Economic Survey

• It is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance.
  • It is formulated under the supervision of the chief economic adviser.
• The Economic Survey was first introduced in 1950-51 as part of the Budget documents.
  • It was separated in the 1960s and is now presented a day before the Union Budget.
• The Economic Survey comprises two parts.
  • The document’s first part includes the country’s economic developments and challenges.
  • It also offers an overall review on the economy. The second part is focused on the past financial year.

Key Highlights of the Economic Survey 2024

• Resilient Indian Economy: The economy grew over 7 percent for a third consecutive year.
  • Gross value added (GVA) at 2011-12 prices grew by 7.2 percent in FY24.
  • India’s real GDP in FY24 was 20 percent higher than in FY20, a notable achievement among major economies, and suggested strong potential for continued robust growth in FY 2024-25 and beyond.
  • India’s CAD (current account deficit) for the last financial year stood at 0.7 percent of the GDP during FY24, an improvement from the deficit of 2.0 percent of GDP in FY23.
  • India’s external debt has been sustainable over the years, with the external debt-to-GDP ratio standing at 18.7 percent at the end of March 2024.
• Stable banking sector: Bank credit growth was broad-based and double-digit.
  • Gross and net non-performing assets (NPAs) reached multi-year lows.
• Core inflation falls significantly: Inflation at 5.4 percent – the lowest level since the pandemic, driven by a fall in core inflation – both goods and services.
  • Core services inflation eased to a nine-year low in FY24; at the same time, core goods inflation also declined to a four-year low.
• Food inflation a concern: It stood at 6.6 percent in FY23 and increased to 7.5 percent in FY24.
  • Due to extreme weather events, depleted reservoirs, and crop damage, India’s agriculture sector faced challenges, giving rise to food inflation.
• FDI inflows slow: Net FDI inflows to India declined from $42 billion during FY23 to $26.5 billion in FY24.
  • However, gross FDI inflows moderated only by 0.6 per cent from $71.4 billion in FY23 to just under $71 billion in FY24.
• External Sector: India’s external sector remained strong despite geopolitical headwinds and persistent inflation.
  • Logistics Performance Index: India improved its rank from 44th in 2018 to 38th in 2023 out of 139 countries.
  • Export Diversification: India is adding more export destinations, indicating regional diversification.
  • Services Exports: Grew by 4.9% to USD 341.1 billion in FY24. Growth driven by IT/software services and ‘other’ business services.
  • Remittances: India is the top remittance recipient globally, reaching USD 120 billion in 2023.
  • Foreign Portfolio Investment: Positive net inflows in FY24 supported by strong economic growth, stable business environment, and increased investor confidence.
• India’s energy needs to grow 2 times by 2047: India’s energy needs are expected to grow 2 to 2.5 times by 2047 to meet a growing economy’s developmental priorities and aspirations.
  • As of May 2024, the share of non-fossil sources in the installed electricity generation capacity has reached 45.4 percent.
  • The country has reduced the emission intensity of its GDP from 2005 levels by 33 percent in 2019.
• Formal Employment Growth: Net payroll additions under EPFO have more than doubled over the past five years, indicating robust growth in formal employment.
• Sectoral Performance: The agriculture and food management sector has registered an average annual growth rate of 4.18 per cent at constant prices over the last five years
  • The services sector continues to significantly contribute to India’s growth, accounting for about 55 percent of the total size of the economy in FY24.

• Emerging Job Demands: Greater and more focused skills needed in areas like: Blockchain, Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Cybersecurity, Cloud Computing, Big Data Analytics, Augmented Reality, Virtual Reality, 3D Printing, Web and Mobile Development.
• Employment scenario: It estimates India’s workforce at nearly 565 million, with over 45 percent engaged in agriculture, 11.4 percent in manufacturing, 28.9 percent in services, and 13.0 percent in construction.
  • The services sector remains a major job creator, while the construction sector’s importance has increased due to government infrastructure initiatives.
  • The Survey emphasizes that the Indian economy needs to create 7.85 million non-farm jobs annually until 2030.
• Socio-economic repercussions of mental health issues: It extensively covers the socio-economic repercussions of mental health issues for the first time.
  • As per the National Mental Health Survey (NMHS) 2015-16, 10.6 percent of adults in India suffer from mental disorders, with treatment gaps ranging from 70 percent to 92 percent for different conditions.
  • It advocates for a comprehensive, community-based approach to address this problem.
• Growth strategy for new India: The job and skill creation should be among the key focus areas in the short to medium term.
  • Other priorities include tapping the full potential of the agriculture sector, addressing MSME bottlenecks, managing India’s green transition, deftly dealing with the Chinese conundrum, deepening the corporate bond market, tackling inequality, and improving the quality of health of our young population.

General Studies Paper -3 

Context: The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament.

About

• Budget Estimates of 2024-25 are
• Total receipts other than borrowings: `32.07 lakh crore.
• Total expenditure: `48.21 lakh crore.
• Net tax receipt: `25.83 lakh crore.
• Fiscal deficit: 4.9 percent of GDP.
• Government aims to reach a deficit below 4.5 percent next year.
• Inflation continues to be low, stable and moving towards the 4% target; Core inflation (non-food, non-fuel) at 3.1%.
• The focus of the budget is on Employment, Skilling, MSMEs, and the Middle

Package of PM’s five schemes for Employment and Skilling

• Prime Minister’s Package of 5 Schemes and Initiatives for employment, skilling and other opportunities for 4.1 crore youth over a 5-year period.
  • Scheme A – First Timers: One-month salary of up to `15,000 to be provided in 3 installments to first-time employees, as registered in the EPFO.
  • Scheme B – Job Creation in manufacturing: Incentive to be provided at specified scale directly, both employee and employer, with respect to their EPFO contribution in the first 4 years of employment.
  • Scheme C – Support to employers: Government to reimburse up to `3,000 per month for 2 years towards EPFO contribution of employers, for each additional employee.
  • New centrally sponsored scheme for Skilling: 20 lakh youth to be skilled over a 5-year period and 1,000 Industrial Training Institutes to be upgraded in hub and spoke arrangements.
  • New Scheme for Internship in 500 Top Companies to 1 crore youth in 5 years.

Nine Budget Priorities in pursuit of ‘Viksit Bharat’

• Productivity and resilience in Agriculture
• Employment & Skilling
• Inclusive Human Resource Development and Social Justice
• Manufacturing & Services
• Urban Development
• Energy Security
• Infrastructure
• Innovation, Research & Development and
• Next Generation Reforms

Priority 1: Productivity and resilience in Agriculture

• Allocation of 52 lakh crore for agriculture and allied sectors.
• New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops to be released for cultivation by farmers.
• 10,000 need-based bio-input resource centres to be established for natural farming.
• Digital Public Infrastructure (DPI) for Agriculture to be implemented for coverage of farmers and their lands in 3 years.

Priority 2: Employment & Skilling

• As part of the Prime Minister’s package, 3 schemes for ‘Employment Linked Incentive’ to be implemented – Scheme A – First Timers; Scheme B – Job Creation in manufacturing; Scheme C – Support to employers.
• To facilitate higher participation of women in the workforce;
  • Working women hostels and crèches to be established with industrial collaboration
  • Women-specific skilling programmes to be organized
  • Market access for women SHG enterprises to be promoted.
• Skill Development: New centrally sponsored scheme for Skilling under Prime Minister’s Package for 20 lakh youth over a 5-year period.
  • Model Skill Loan Scheme to be revised to facilitate loans up to 7.5 lakh.
  • Financial support for loans upto `10 lakh for higher education in domestic institutions to be provided to youth who have not been eligible for any benefit under government schemes and policies.

Priority 3: Inclusive Human Resource Development and Social Justice

• Purvodaya: Industrial node at Gaya to be developed along the Amritsar-Kolkata Industrial Corridor.
  • Power projects, including a new 2400 MW power plant at Pirpainti, to be taken up at a cost of `21,400 crore.
• Andhra Pradesh Reorganization Act: Special financial support through multilateral development agencies of `15,000 crore in the current financial year.
  • Industrial nodes at Kopparthy along Visakhapatnam-Chennai Industrial Corridor and at Orvakal along Hyderabad-Bengaluru Industrial Corridor.
• Women-led development: Total allocation of more than `3 lakh crore for schemes benefitting women and girls.
• Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Socio-economic development of tribal families in tribal-majority villages and aspirational districts, covering 63,000 villages benefitting 5 crore tribal people.
• 100 branches of India Post Payment Bank to be set up in the NorthEast region.

Priority 4: Manufacturing & Services

• Credit Guarantee Scheme for MSMEs in the Manufacturing Sector: A credit guarantee scheme without collateral or third-party guarantee in term loans to MSMEs for purchase of machinery and equipment.
• Credit Support to MSMEs during Stress Period: New mechanism to facilitate continuation of bank credit to MSMEs during their stress period.
• Mudra Loans: The limit of Mudra loans under ‘Tarun’ category to be enhanced to `20 lakh from `10 lakh for those who have successfully repaid previous loans.
• E-Commerce Export Hubs: E-Commerce Export Hubs to be set up under public-private-partnership (PPP) mode for MSMEs and traditional artisans to sell their products in international markets.
• Critical Mineral Mission: Critical Mineral Mission to be set up for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets.
• Digital Public Infrastructure (DPI) Applications: Development of DPI applications in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance.

Priority 5: Urban Development

• Formulation of Transit Oriented Development plans and strategies to implement and finance 14 large cities above 30 lakh population.
• Street Markets: New scheme to support the development of 100 weekly ‘haats’ or street food hubs every year for the next 5 years in select cities.

Priority 6: Energy Security

• Government to partner with the private sector for R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy, and to set up Bharat Small Reactors.
• Advanced Ultra Super Critical Thermal Power Plants: Joint venture proposed between NTPC and BHEL to set up a full scale 800 MW commercial plant using Advanced Ultra SuperCritical (AUSC) technology.

Priority 7: Infrastructure

• Infrastructure investment by Central Government: `11,11,111 crore (3.4 % of GDP) to be provided for capital expenditure.
• Infrastructure investment by state governments: Provision of `1.5 lakh crore for long-term interest free loans to support states in infrastructure investment.
• Tourism: Comprehensive development of Vishnupad Temple Corridor, Mahabodhi Temple Corridor and Rajgir.

Priority 8: Innovation, Research & Development

• Anusandhan National Research Fund for basic research and prototype development to be operationalised.
• Financing pool of `1 lakh crore for spurring private sector-driven research and innovation at commercial scale.
• Space Economy: Venture capital fund of  `1,000 crore to be set up for expanding the space economy by 5 times in the next 10 years.

Priority 9: Next Generation Reforms

• Rural Land Related Actions: Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, Digitization of cadastral maps etc.
• NPS Vatsalya: NPS-Vatsalya as a plan for contribution by parents and guardians for minors.

Highlights for Tax Collection

Indirect Taxes

• GST: Buoyed by GST’s success, tax structure to be simplified and rationalized to expand GST to remaining sectors.

Sector specific customs duty proposals

• Medicines and Medical Equipment: Three cancer drugs namely Trastuzumab Deruxtecan, Osimertinib and Durvalumab fully exempted from custom duty.
  • Changes in Basic Customs Duty (BCD) on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme.
• Precious Metals: Customs duties on gold and silver reduced to 6 per cent and that on platinum to 6.4 per cent.
• Telecommunication Equipment: BCD increased from 10 to 15 per cent on PCBA of specified telecom equipment.
• Trade facilitation: For promotion of domestic aviation and boat & ship MRO, time period for export of goods imported for repairs extended from six months to one year.
  • Time-limit for re-import of goods for repairs under warranty extended from three to five years.
• Critical Minerals: 25 critical minerals fully exempted from customs duties.
  • BCD on two critical minerals reduced.
• Solar Energy: Capital goods for use in manufacture of solar cells and panels exempted from customs duty.

Direct Taxes

• Efforts to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation to be continued.
• 58 percent of corporate tax from simplified tax regime in FY23, more than two-thirds taxpayers availed simplified tax regime for personal income tax in FY 24.

Simplification and Rationalisation of Capital Gains

• Short term gains on certain financial assets to attract a tax rate of 20 per cent.
• Long term gains on all financial and non-financial assets to attract a tax rate of 12.5 per cent.
• Exemption limit of capital gains on certain financial assets increased to ₹25 lakh per year.

Litigation and Appeals

• ‘Vivad Se Vishwas Scheme, 2024’ for resolution of income tax disputes pending in appeal.
• Monetary limits for filing direct taxes, excise and service tax related appeals in Tax Tribunals, High Courts and Supreme Court increased to ₹60 lakh, ₹2 crore and ₹5 crore respectively.
• Safe harbor rules expanded to reduce litigation and provide certainty in international taxation.

Employment and Investment

• Angel tax for all classes of investors abolished to bolster start-up ecosystem.
• Corporate tax rate on foreign companies was reduced from 40 to 35 per cent.

Deepening tax base

• Security Transactions Tax on futures and options of securities increased to 0.02 per cent and 0.1 per cent respectively.
• Income received on buy back of shares in the hands of the recipient to be taxed.

Social Security Benefits

• Deduction of expenditure by employers towards NPS to be increased from 10 to 14 percent of the employee’s salary.
• Non-reporting of small movable foreign assets up to ₹20 lakh de-penalised.

Changes in Personal Income Tax under new tax regime

General Studies Paper -2

Context: India will push its Indo-Pacific agenda through a meeting of Quad foreign ministers at the end of July in Tokyo.

• India plays a pivotal role through its engagements in various multilateral groupings like the Quad and BRICS.
• These platforms serve as critical arenas for India to assert its strategic interests, enhance its economic influence, and foster international partnerships.

The Strategic Significance of Quad

The Quad has emerged as a key platform for promoting a rules-based international order in the Indo-Pacific region.

• Counterbalancing China’s Influence: For India, the Quad holds immense strategic significance, particularly in balancing China’s growing assertiveness in the region.
• This is particularly crucial for India’s interests in safeguarding its maritime trade routes and ensuring freedom of navigation in international waters.
• Platform for military cooperation : It provides a platform for military cooperation, intelligence sharing, and joint exercises aimed at maintaining maritime security and ensuring the rule of law.
• Aligns with its “Act East” policy : India’s participation in the Quad aligns with its “Act East” policy, emphasizing deeper engagement with East Asian nations and strengthening maritime security cooperation.
• India benefits from enhanced relations, especially with the U.S., through Quad engagements.
• Diplomatic Leverage: The Quad also serves as a diplomatic platform for India to strengthen bilateral relationships with the United States, Japan, and Australia, forging deeper strategic partnerships that extend beyond maritime security to include areas like trade, technology, and global governance.

Importance BRICS

• BRICS focused primarily on economic cooperation, development, and global governance reform.
• Economic Cooperation: BRICS facilitates economic collaboration through initiatives such as the New Development Bank (NDB), aimed at funding infrastructure projects in member countries.
• Economic collaboration within BRICS facilitates trade diversification, technology transfer, and infrastructure development, which are crucial for India’s economic growth and development aspirations.
• Global Governance Reform: India uses BRICS as a platform to advocate for reforms in international financial institutions like the IMF and World Bank, aiming to increase the voice and representation of emerging economies in global economic governance.
• Cultural and Academic Exchange: BRICS fosters cultural and academic exchanges, promoting people-to-people ties and enhancing mutual understanding among member countries.

Challenges

• India’s involvement in the Quad has drawn reactions from China, which views the grouping as a containment strategy.
• Member countries of BRICS have diverse economic and geopolitical priorities, which can sometimes hinder consensus-building on key issues.
• Despite initiatives like the NDB, the effectiveness of BRICS institutions in driving economic development and addressing global challenges remains a subject of scrutiny.
• India, despite reservations, has reluctantly accepted BRICS expansion influenced by China and Russia’s alignment.
• Chinese influence is growing not just in the Indo-Pacific, but elsewhere too.
• ASEAN countries are getting increasingly vulnerable, with the South China Sea remaining a flashpoint.

Conclusion and Way Forward

• India’s participation in the Quad and BRICS reflects its multifaceted approach to global diplomacy, encompassing security cooperation, economic development, and global governance reform. While these groupings offer platforms for India to advance its strategic and economic interests on the global stage, they also present challenges that require careful navigation and diplomatic engagement.
• As India continues to navigate the complexities of international relations, its engagement in the Quad and BRICS remains pivotal in shaping a multipolar world order conducive to its long-term strategic and economic interests.
• India must navigate its participation in the Quad and BRICS  without undermining its longstanding policy of strategic autonomy and non-alignment.

General Studies Paper -2 

Context: Recently, the Supreme Court has reserved the decision on sub-caste reservation for SC/STs, —a topic that stirs debates and raises important questions about social justice and equity.

Historical Context and Rationale

• B. R. Ambedkar, a key architect of India’s Constitution, advocated for policies to address historical injustices faced by marginalized communities. The Constitution of India, under Articles 15(4) and 16(4), allows for reservations in education and public employment to uplift these historically disadvantaged groups. The goal is to provide them with equal opportunities and representation.

Main Components

• Legal Safeguards Against Caste Discrimination: Ambedkar proposed legal measures to combat caste-based discrimination. However, he recognized that laws alone wouldn’t guarantee a fair share for untouchables in various spheres.
  • Hence, reservation was introduced as a supplementary measure. Together, these two pillars aimed to address discrimination in the ‘present’
• Reservation in Education and Public Employment: While legal safeguards and reservations ensured representation in the current context, they had limitations in rectifying historical injustices related to property, employment, and education. Hence, the third pillar emerged—the focus on improving ownership of capital assets (such as land and businesses) and education.
  • This economic empowerment was designed to equip untouchable youth to pursue education and secure jobs under reservation.
• Economic and Education Empowerment: Reservations in legislatures, public jobs, and educational institutions were meant for untouchables as a whole, with a ‘social group focus’. Simultaneously, economic empowerment targeted individuals lacking income-earning assets and education.
• B. R. Ambedkarjustified these policy measures due to the denial of equal civic and property rights, employment, and education faced by untouchables as a whole.
• However, these measures were intended to complement each other, not act as standalone solutions.
• Legal safeguards and reservations aimed to ensure a fair share in the present, while economic empowerment measures sought to address past denials of property rights, employment, and education.

Complex Landscape of Sub-Caste Reservations

• Weak Academic Basis: The academic rationale for sub-caste reservations has been questioned. Reservation system allocates quotas for SCs and STs, and there is growing awareness that some sub-castes within these groups have benefited more than others.
  • The under-representation of certain sub-castes seeking reservation is primarily due to their lack of income-earning assets and education, rather than discrimination by other SC sub-castes.
• Lack of Income-Earning Assets: Many individuals lack capital assets, hindering their access to education and economic opportunities.
• Educational Disparities and Discrimination: Unequal educational opportunities persist, affecting representation.
  • While untouchables collectively suffered from untouchability, specific sub-castes may have faced varying degrees of discrimination.

Dilemma of Unequal Benefits

• Supporters of sub-caste reservations argue that some sub-castes have benefited more than others. Consequently, those lagging behind should have separate quotas. However, this approach raises questions: Does sub-categorization truly address the root cause of the problem? And how do we balance historical injustices with present-day realities?

Proposed Reforms

• Redesigning the System: As legal challenges to the 50% reservation ceiling and specific caste listings continue, there’s an opportunity to rethink the system.
  • One potential reform is to reduce the number of relatively wealthy beneficiaries.
• Balancing Equitable Distribution: Ensuring that benefits reach all sub-castes fairly remains a challenge.
  • Some sub-castes have indeed benefited more than others, leading to calls for separate quotas for those lagging behind.
• Education and Economic Empowerment: Addressing educational disparities and economic empowerment remains crucial.
  • Policies should focus on both group-level representation and individual-level upliftment.

Supreme Court’s Role

• In 2020, a five-member bench ruled that state governments had the right to sub-classify SC categories to achieve equitable distribution of benefits under reservation.
• The Supreme Court has upheld the right of state governments to create sub-categories within the SC category. For instance, Tamil Nadu has Arunthathiyars, Punjab has Valmikis and Mazhabi Sikhs, etc.

Related State-Level Initiatives

• Several Indian states (such as Punjab, Bihar, and Tamil Nadu) have attempted to sub-categorize SCs within the broader umbrella of Scheduled Castes. These efforts aim to determine separate quotas for different subcategories within SCs.
• The purpose is to ensure equitable distribution of socio-economic benefits under reservation.
  • Some sub-castes may have lagged behind due to a lack of income-earning assets and education, rather than discrimination by other SC sub-castes.

Way Forward

• Clarification: Any decision on sub-caste reservation must consider the interconnectedness of these three policy pillars. We need clarity on how legal safeguards, reservations, and economic empowerment work together.
• Balancing Equity: While addressing the specific needs of sub-castes is essential, we must ensure that overall equity isn’t compromised. Striking this balance is delicate but crucial.
• Data-Driven Solutions: Perhaps a caste census could provide more accurate data on sub-castes, enabling informed policy-making.
  • Additionally, sub-categorization within castes could be explored further, but it’s not a panacea.

Conclusion

• Sub-caste reservations are a multifaceted issue that requires a nuanced approach. Balancing historical justice, social equity, and economic empowerment remains a challenge.
• As we continue this dialogue, it’s essential to consider both legal and academic perspectives to arrive at fair and effective policies. It requires thoughtful consideration, empathy, and a commitment to justice.

General Studies Paper -2 

Context: The Supreme Court agreed to examine the contours of Article 361 of the Constitution which grants “blanket immunity” to governors from any kind of criminal prosecution.

Background

• A woman staff member of the West Bengal Raj Bhawan, has accused Governor CV Ananda Bose of sexual harassment.
• The plea challenges the immunity granted to the governor of a state under Article 361 of the Indian Constitution and seeks several directions and investigations.

What is Article 361?

• The Governors of state receive immunity from legal proceedings over the duration of their term in office under Article 361 of the Constitution.
• The aim of the Article is to ensure that they are not answerable to any court for the exercise and performance of their official powers and duties, nor for any acts done in the course of these duties.
  • Criminal proceedings: No criminal cases can be initiated or continued against them, and no arrest or imprisonment orders can be issued by any court under Clause (2) of Article 361.
  • Civil proceedings: The Article mandates a two-month notice for any civil proceedings related to personal acts.
  • Clause (3) of Article 361 restricts any arrest or imprisonment orders during their term.
• The article is an exception to Article 14 (right to equality) of the Constitution and provides that the president or the governor is not answerable to any court for the exercise of the powers and duties of his office.

Immunity power of the Governor

• Ceases to be in office: The police can act only after the Governor ceases to be in office, which is when either the Governor resigns or no longer enjoys the confidence of the President.”
• Rameshwar Prasad v Union of India: In the landmark 2006 ruling in Rameshwar Prasad v Union of India, that outlined the immunity enjoyed by the Governor “even on allegation of personal malafides,” the Supreme Court held that “the position in law, is that the Governor enjoys complete immunity.”

What is the role of a governor in India?

• Governors in India have the responsibility of upholding and enforcing the Constitution and laws.
• According to Articles 153 and 154 of the Constitution, governors ensure the smooth functioning of state governments within the constitutional framework.

Concluding Remarks

• Governors in India possess discretionary constitutional powers, which enable them to make critical decisions in the executive realm, particularly during times of political or administrative uncertainty.
• Although these powers are constitutionally granted, they are subject to judicial review to ensure they are exercised within legal and proper bounds.

General Studies Paper-3

Context: The Asian Development Bank (ADB) has approved a loan of USD 240.5 million to finance rooftop solar systems in India.

About

• This financing will support tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, initially approved by ADB in 2016.
  • In 2023, the program was restructured to focus specifically on deploying residential solar rooftop systems.
• The approved financing will be allocated to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD).
  • These institutions will provide loans to developers and end-users throughout India for the installation of rooftop solar systems.

Significance of Rooftop Solar Systems

• It can reduce the technical and operational burden by generating electricity close to where it is consumed, thereby decreasing the need for long-distance power supply and the associated system losses.
  • This enhances the efficiency of power distribution and provides a degree of energy independence, minimizing power supply disruptions.
• India’s Aim: India aims to achieve about 50 percent of cumulative electric power installed capacity from non-fossil fuel energy sources by 2030 in line with its global commitments to reduce carbon emissions.
  • ADB’s financing supports these goals and will contribute to the Prime Minister’s Surya Ghar program, which encourages people to install rooftop solar systems across the country

Solar Energy

• Solar energy is the most abundant & cleanest energy resource on earth.
• Solar energy can be used mainly in three ways one is direct conversion of sunlight into electricity through PV cells, the two others being concentrating solar power (CSP) and solar thermal collectors for heating and cooling (SHC).
• Indian Scenario: India is endowed with abundant solar energy, which is capable of producing 5,000 trillion kilowatts of clean energy.
  • India gets around 300 sunny days in a year and solar insolation of 4-7kWh per Sq. m per day.
  • If this energy is harnessed efficiently, it can easily reduce the energy deficit scenario and that too with no carbon emission.
  • In near future Solar energy will have a huge role to play in meeting India’s energy demand.

India’s Solar Energy

• Capacity: India’s installed solar power capacity is about 81 GW (1 GW is 1,000 megawatt), or roughly 17% of the total installed electricity.
  • India’s largest solar parks are located in the north-west, particularly Gujarat and Rajasthan.
  • India currently stands 4th globally in solar power capacity.

India has set following resolute targets to usher in a renewable revolution:

• 500 GW of renewable energy capacity by 2030;
• Meeting 50% of its energy requirement from renewable sources by 2030;
• Reducing the total projected carbon emissions by 1 Bn Tonnes by 2030;
• Reducing the carbon intensity of its economy by under 45%;
• Becoming a net zero carbon country by 2070.

Government Initiatives to Promote Solar Energy Adoption

• Solar Park Scheme, designed to establish 50 Solar Parks of 500 MW and above with a cumulative capacity of ~38 GW by 2025-26.
• PM-KUSUM — aimed to achieve solar power capacity addition of 30.8 GW by 2026 — are transforming India’s agricultural sector by setting up decentralised solar power plants, replacing agriculture diesel pumps with solar agriculture water pumps and solarising existing grid-connected agriculture pumps.
• Rooftop Solar Programme for the residential sector and the Off-grid Solar PV Applications Programme for rural areas are also making solar energy accessible by providing subsidies.
• The International Solar Alliance (ISA), launched in 2015 by the Prime Minister of India and the President of France.
  • It is a member-centric, collaborative platform focused on action aimed at creating 450 GW of renewable energy by 2030.
• The Rooftop Solar Yojana, or the PM Surya Ghar Muft Bijli Yojana, aims to provide 300 units of free electricity every month to light up one crore households.
  • The objective of this scheme is to reduce the electricity costs of the house by installing rooftop solar panels and using solar energy.

Conclusion

• Solar energy has been recognized as an alternative to conventional energy resources.
• Amongst all the clean technologies, solar energy serves as an effective renewable energy resource to mitigate greenhouse gas emissions and reduce global warming.
• Solar energy is one of the resources capable of self-reliant energy generation, reducing foreign energy dependence.
• This necessitates the wide use of solar panels with better efficiency to meet the energy requirements from solar resources.