General Studies Paper 4

Context: 

Over the last year, the Union government has laid emphasis on promoting sustainable tourism  in the Himalayan region.

Background:

• The Indian Himalayan region, with its rich biodiversity, offers conditions suitable for several activities(recreation/adventure/religious pilgrimages) and attracts a large number of visitors from all over the world.
• As tourism is an important source of income and livelihood for people living in this region, it must be ensured that these activities take place in a sustainable manner.

Recent efforts:

• National Strategy for Sustainable Tourism and Responsible Traveller Campaign Launched in 2022 by the Union Ministry of Tourism, it focuses on
  • Promotion of environmental, economic and socio-cultural sustainability;
  • Protection of biodiversity;
  • Capacity-building and governance;
  • Greater investment in green infrastructure with more efficient transport facilities reduced air pollution, and conservation of heritage sites and open spaces.
• Swadesh Darshan 2.0: It is a centrally sponsored scheme for the development of theme-based tourist circuits in the country, including a vision to set up sustainable and responsible tourism in the Himalayan region.

Some challenges need greater focus:

• Mass tourism:Seasons play a role as a major tourist activity is confined to just a few months in a year – during the peak summer season.
• Greater anthropogenic pressure on existing infrastructure and local resources during the summer months.
• More generation of solid waste, ambient air pollution, water pollution and deforestation.
• Shift is seen in snowfall and melting patterns due to climate change -related impacts.

Way ahead:

• Reduce mass tourism and inculcate a spirit of conservation among locals and tourists.
• Promoting ecotourism (which involves responsible travel and safeguarding of local environment and ecosystems), alternative or green tourism.
• Decentralisation of tourism activities based on the available resources in any place. Tourists would also be able to access the benefits of the largely untouched environment.
• Developing tourist systems in northeastern states that have great potential for ecotourism activities.
• Assessing the carrying capacity of municipal infrastructure prior to development works.

Combat pollution:

• By practising microbial bio composting: the best way of natural disintegration and decomposition of waste under aerobic process.
• To combat air pollution,  planting locally available (like broad-leaved banj oak), introducing electric vehicles , using non-conventional energy sources like solar, etc.
• Pine forests, which often witness fires, can be used to make bio-briquettes (used as a substitute for  biofuel ) and purify water resources.

Involve all stakeholders:

• Any sustainable approach undertaken should involve the local communities, visitors, etc. Encourage skill and capacity-building programmes to spread awareness among different stakeholders.
• Visitors should learn the rules and good practices to be adopted while travelling through these areas.

General Studies Paper 2

Context: 

Chancellor Scholz of Germany made a two ­day visit to India, that began on February 25, 2023,

How is Germany undergoing major changes in its external approach?

• The Russian invasion of Ukraine has been a watershed moment in Germany’s security policy. It has resulted in the abandonment of post-war pacific policy towards strategic matters. This is evident in Germany’s increased military spending.
• Russia’s war and China’s assertive posturing have brought into question Germany’s approach of change through trade. It has prompted a rethink of its energy and trade dependencies.The focus is now on diversifying economic relations.
• In a departure from previous Asia policy that centred around China, Mr. Scholz first visited Japan after assuming office in 2021. He later invited Mr. Modi for the 6th Intergovernmental Consultations to Berlin.
• This enhanced political outreach to Asia is part of Germany’s overall strategy for the Indo ­Pacific Region. It mentions India as a key partner.
• For Germany, the stability of supply chains and trade routes linking Asia to Europe assumes critical importance. The reason is its status as Europe’s economic powerhouse and its reliance on exports.

What are the points of convergence between India and Germany?

• As ties with Russia and China are uncertain, Europe is prioritising values based partnerships with like minded countries. It can advance India­-German cooperation.
• The German government’s coalition agreement in 2021 refers to relations with India among its top foreign policy priorities.
• Scholz has expressed Germany’s intent to enhance its strategic involvement in the Indo-Pacific through greater military deployment.
• Germany’s symbolic gesture of sending its frigate Bayern to the Indo­Pacific in 2021, with a stopover in Mumbai was a demonstration of this.
• A recent agreement on India­-Germany triangular cooperation involving development projects in third countries is also an important step in this direction.

What is the status of the bilateral relationship between India and Germany?

• Defence and security– New Delhi attempts to diversify from its military dependence on Russia. Berlin is also reassessing its arms exports policy. Germany could become an important defence partner for India.
• The recent meetings between heads of the states included discussions around co­development of military hardware and tech transfers.
• A deal worth $5.2 billion where Germany would jointly build six conventional submarines in India could be underway. Besides, the first ever France-­India­-Germany military exercise drill is slated to take place in 2024.
• Yet, it is important for the two countries to set realistic expectations in the security realm. Despite their common concerns regarding stability in the Indo­Pacific, Germany does not share a border with China.
• India has territorial conflicts with China. Despite the lack of German trust in China, there exists economic interdependence.
• It is encouraging that Germany is drafting anew official China strategy amidst a wider national security strategy.
• On global issues– India and Germany also cooperate in multilateral forums, as part of the G­4 grouping pushing for United Nations Security Council reform.
• Discussions on the Russia­ Ukraine conflict and its global repercussions were the centre stage of talks between two Modi and Scholaz. Prime Minister Narendra Modi has reiterated India’s commitment to contribute to any peace process.
• Economy– Germany is India’s largest economic partner in the European Union (EU). The Chancellor had a high powered business delegation with him during visit to India.
• Clean energy and green technologies-It has emerged as the central pillar in the partnership. The Green and Sustainable Development Partnership was launched last year. There exists cooperation in the area of green hydrogen.
• Mobility and migration– It is also a focus area. Germany has shortages of skilled manpower; where technically skilled Indians could help plug this gap.

What is the future of bilateral partnership?

• The relationship is steadily evolving into a more wholesome Partnership.
• Divergent positions on the war have not undermined India’s regular political engagements with Europe.
• An intensification of the Russia-­China axis could further embolden this alignment. Against the backdrop of volatile geopolitical shifts, emerging multipolarity, India’s ties with Germany could be vital in shaping a new global order.

General Studies Paper 2

Context:

Despite progress in closing the global gender gap overall, women and girls continue to be left behind in the digital world.

More about the Digital gender gap 

• Meaning:
  • It is the inequalities between men and women in terms of access to information and communications technologies.
  • The term “digital gender gap” was coined by UN Women in 2010.
  • Digital Equity:
    • Digital equity on the other hand is about providing everyone with equal opportunities to use technology to improve their lives.
    • It includes making sure that everyone has access to the internet and the skills they need to use it effectively.
  • Data on the digital divide: 
    • UNICEF Report:
      • According to a UNICEF report, as many as 90% of the jobs in the world today have a digital component.
      • These jobs, however, are available only to the digitally able, and to more men than women.
      • According to the report, in developing countries, only 41% of women have access to the internet compared with 53% of men.
      • Women are 20% less likely to own a smartphone and are more likely to borrow phones from a male family member.
    • OECD data:
      • Another report by the Organisation for Economic Cooperation and Development revealed that the gender gap in internet use is widening.
      • Software development remains a male-dominated field, with women comprising only 15% of software designers.
    • ICUBE 2020:
      • ICUBE is an annual syndicated study of Kantar to measure the reach and frequency of Internet users in India.
      • Data on the use of the internet in India indicates that in comparison with 58% of male internet users, female users are only 42%.

Significance of bridging the Gender Digital Divide 

• Benefits to women & Nation:
  • India aims to have a $1 trillion digital economy by 2025.
    • Already, 40% of global digital transactions take place in India.
    • In 2022, a staggering 49 billion digital transactions took place in India.
  • As economies digitize further, there is every reason to believe that most jobs will require some knowledge of digital technology.
  • There are vast opportunities for girls and women to power India’s digital economy and benefit from it.
• Can act as a multiplier effect:
  • We have the world’s largest young population, and women and girls constitute almost half of it.
  • Access to digital technology for a young woman can be a game changer with multiplier effects.
• Acting as a solution:
  • Giving women access to the internet and teaching them digital skills can help them overcome many of the obstacles they face.
  • With internet access, women can gain new knowledge and skills, connect with others, and find new opportunities. Digital knowledge can also play a significant role in women’s safety.
  • With digital equity, women can be empowered to reach their full potential.

Challenges leading to Gender Digital Divide 

• The post-pandemic world:  
  • Children struggled to keep up with their studies using the limited smartphones and computers available to them.
  • UNESCO estimated that around 168 million girls enrolled in pre-primary to tertiary levels of education were affected.
    • It is possible that within some families, boys had more access to scarce digital resources.
  • Always second to men:
    • Girls and women are denied access to digital technologies because they almost always come second in a patriarchal social order.
    • Data on literacy, education, and access to resources confirm the reality of their being second to men.
  • Online abuse faced by women:
    • The dangerous trend in online abuse was forcing women out of jobs, causing girls to skip school, damaging relationships and silencing female opinions, prompting him to conclude that “the web is not working for women and girls”.
  • Offline impacts:
    • Online harassment often translates into offline impacts and consequences, with much-documented evidence in this regard.
  • Inadequate artificial intelligence:
    • The third threat comes from badly designed artificial intelligence systems that repeat and exacerbate discrimination.

Suggestions 

• Addressing the divide:
  • Addressing the digital divide requires special, urgent and focused efforts of the government.
  • A large investment needs to be made, year after year, in digital infrastructure.
• Need of policy interventions:
  • Bridging the gender gap will require smart interventions specially designed for girls and women in health, education, employment, banking, skilling and transportation.
  • A favourable policy environment to promote the digital empowerment of women is a step in the right direction.
• Skills:
  • Digital skills, required today both for life and for livelihoods, must be imparted on a war footing by transforming government digital literacy programmes into skilling missions, and expanding outreach, including through the private sector.
• Online safety of women:
  • Social media sites can use their “algorithm power” to proactively tackle the issue of safety.
  • Governments need to strengthen laws that hold online abusers to account, and the public to speak up whenever they witnessed abuse online.
• Example of ‘Digital Sakhis’:
  • Young women known as ‘Digital Sakhis’ from Madhya Pradesh are upturning discriminatory social norms through the use of smartphones.

Way ahead

• The digital gender gap is not only a modern social evil but also a huge economic constraint
• To leave women out of the digital world would amount to denying what today has become a basic skill for survival.
• Making the right use of the G20 platform:
  • Prime Minister has emphasized the need for ‘women-led development’ as India took over the G20 presidency.
  • Women20—the G20’s official engagement platform to promote gender equity—identifies “bridging the gender digital divide” as one of its five priorities that need to be mainstreamed as part of the G20 agenda this year.

General Studies Paper 1

Context:  

Forest fires continued to remain unabated in Odisha after the state recorded 542 such cases in the last seven days making it the highest among all states in the country.

Forest fires in India:

Causes of a Forest fire:

• Natural:Such as lightning, high atmospheric temperatures, and dryness (low humidity) offer favourable circumstances.
• Man-made:When a source of fire like naked flame, cigarette, or bidi comes into contact with inflammable material.

Types of a forest fire:

• Surface fire:Spread along the surface litter (leaves, twigs, dry grasses) on the forest floor.
• Ground fire: Fires in thes ubsurface organic fuels, such as duff layers under forest stands, burn underneath and are often ignited by surface fires.
• Crown fire: A crown fire is one in which the crown of trees and shrubs burn, often sustained by a surface fire.

Good/bad:

• Helps in the evolution of forests (such as dry deciduous forests and savannahs),
• Landscape/disease management (indigenous people like the Soligas have used controlled forest fires to reduce incidences of tick-borne diseases),
• Controls the growth of invasive species, etc.
• However, forest fires can have lasting negative impacts on biodiversity (loss of flora, fauna, ecological services), the economic stability of many communities that live in forests, etc.

Vulnerability:

• ~65%of Indian forests are prone to occasional/frequent forest fire events.
• Odisha, Madhya Pradesh, and Chhattisgarh were the most impacted states and Gadchiroli, Kandhamal, and Bijapur were the most impacted districts.
• The youngest mountain ranges of the Himalayas/chirr (Pine) forests (Western > Eastern as E. Himalayas grow in high rain density) are the most vulnerable stretches of the world.
• There has been a 10-fold increase in forest fire incidences in the last two decades.
• According to the MoEFCC, the country reported 3,45,989 forest fire incidents during (Nov 2020 and June 2021) and the state of Odisha reported 51,968 – the highest in India.

Impact of climate change:

• It might lead to more wildfire-inducing ‘hot lightning’ strikes.
  • Hot lightning or long continuing current strikes(which can last up to a third of a second) are more likely to ignite wildfires than typical lightning strikes.

Preparedness and mitigation measures: Forest fires are usually seasonal. Hence, fires can be prevented in the summer –

• Through the removal of forest litter all along the forest boundary (“Forest Fire Line“).
• By creating firebreaks/ ditches in the forests.
• The FSI is using satellite imaging technology–
  • To set up fire alert systems (MODIS, SNPP) and analyse fire-affected forest areas
  • To better understand the ecology of forest fires for restoration and fire prevention efforts.

General Studies Paper 3

• Context: In 2016, India’s Prime Minister shared his dream of doubling farmers’ incomes in the year when India completes 75 years of Independence and enters Amrit Kaal. Now that we have entered Amrit Kaal, it is a good time to revisit that dream and see if it has been fulfilled, and if not, how best it can be done.
• Unless the incomes of farmers go up, we cannot have sustained high growth of overall This is because the manufacturing sector starts facing a demand constraint soon after meeting the demand of well-off urban consumers.
• Agriculture engages the largest share of the workforce (45.5% in 2021-22 as per Periodic Labour Force Survey).  So, focusing on agriculture, even if it was in a dream, is the right way to ensure long-term high growth of the overall economy.
• Agriculture also has to provide food and nutritional security to the largest population on this planet. However, if this objective has to be achieved in today’s context, it must encompass policies that also protect the basic resources of this planet, say soil, water, air, and biodiversity.

What are the Issues with Doubling Farmers Income?

• Issues with Agricultural Policies:
  • Trade and marketing policies adopted by the government are suppressing farmers’ incomes.
  • For Example:The ban on exports, the suspension of several commodities from the futures markets, and the imposition of stocking limits on certain commodities.
  • These are hidden policy instruments of “implicit taxation” of farmers’ incomes.
  • The policy of heavy subsidisation along with assured and open-ended procurement of paddy and wheat is creating challenges for the environment.
• Fragmentation of Land:
  • Land fragmentation is a significant issue in India. Small and marginal farmers who own less than two hectares of land constitute around 85% of the total number of farmers in India.
  • This fragmentation of land limits the scale of agricultural operations, making it difficult to achieve economies of scale.
• Poor Infrastructure:
  • India has a weak agricultural infrastructure, including inadequate irrigation facilities, poor storage facilities,and weak transportation networks. This results in poor-quality produce, wastage, and low returns to farmers.
• Low Productivity:
  • The productivity of Indian agriculture is low compared to other countries.The yield per hectare of major crops in India is lower than that of China, Brazil, and the United States.
• Climate Change:
  • Climate change has a significant impact on Indian agriculture. Erratic rainfall, rising temperatures, and extreme weather events such as droughts  and  floods affect crop production and reduce farmers’ income.
• Price Volatility:
  • The agriculture sector in India is characterized by price volatility due to the lack of a stable pricing policy.
  • Fluctuations in prices of agricultural commodities, coupled with high input costs, make it difficult for farmers to plan their production and marketing strategies.
• Inadequate Institutional Support:
  • The lack of institutional support in the form of credit, insurance, and marketing facilities for farmers is a significant challenge.
  • Access to credit and insurance remains low for small and marginal farmers.
• Dependence on Monsoon:
  • A large proportion of Indian agriculture is dependent on monsoon rains.
  • Delayed or inadequate rainfall affects crop production and farmers’ income.

What are the Steps taken by Government for Supporting Farmers?

• The government has implemented various schemes and policies to achieve this goal, including increasing the Minimum Support Price  for crops, promoting   organic farming, and creating a national agricultural market.
• Government provides a fertiliser subsidy whose budget crosses Rs 2 lakh crore. It provides income support to farmers through PM-Kisan.
• Many small and marginal farmers also get free ration of at least 5 kg/person/month through the PM Garib Kalyan Anna Yojana.
• There are also subsidies for crop insurance, credit and irrigation.
• States also give out power subsidies in abundance, especially for irrigation.Even farm machinery for custom hiring centres is being subsidised by many states.

What should be the Way Forward?

• Realignment of Support Policies:
  • The government should incentivize the cultivation of crops that are environmentally friendly and consume fewer resources such as water and fertilizers.
  • Millets, pulses, oilseeds, and   horticulture crops could be given carbon credits to encourage their cultivation.
  • The subsidies/support should be crop-neutral or skewed in favor of the crops that are beneficial for the planet’s resources.
• Promotion of High-Value Crops:
  • Farmers should diversify their crops to include high-value crops that have better market demand and can fetch higher prices.
  • This can be done by introducing better seeds, irrigation techniques,and training on sustainable farming practices.
• Collaboration with Corporations:
  • The government can collaborate with corporations to provide farmers with better market access and an assured buyback arrangement to reduce their market risk.
  • Corporations can also offer farmers better prices for their produce by using them for making value-added products such as tofu, soya milk powder, soya ice cream, and frozen soya yoghurt.
• Technological Innovation:
  • The government should invest in research and development to come up with new technologies that can help farmers increase their productivity and profitability. This can include the use of solar panels on farmers’ fields as a third crop.

General Studies Paper 2

Context:

Australian Prime Minister is visiting India for India-Australia Summit in March 2023, seeking to strengthen the new momentum in ties between the two countries through deeper trade, investment and defence relations.

How have been the India- Australia Relations so far?

• Historical Perspective:
  • Australia and India for the first time established diplomatic relations in the pre-Independence period, when the Consulate General of India was first opened as a Trade Office in Sydney in 1941.
  • India-Australia relations touched a historic low when the Australian Government condemned India’s 1998 nuclear tests.
  • In 2014, Australia signed a Uranium supply deal with India, the first of its kind with a country that is a non-signatory to the Nuclear Non-Proliferation Treaty,  in recognition of India’s “impeccable” non-proliferation record.
• Shared Values:
  • Shared values of pluralistic, Westminster-style democracies, Commonwealth traditions, expanding economic engagement, and increasing high-level interaction have underpinned the India-Australia bilateral relationship.
  • Common traits, including strong, vibrant, secular, and multicultural democracies, a free press, an independent judicial system,and English language, serve as the foundation for closer co-operation.
• People-to-people Ties:
  • India is one of the top sources of skilled immigrants to Australia. As per the 2021 Census, around 76 lakh people in Australia reported their ancestry as Indian origin,making them the second largest group of overseas-born residents in Australia.
• Strategic Ties:
  • In 2020,Prime ministers of both the countries elevated bilateral relationship from Strategic Partnership to Comprehensive strategic Partnership during India-Australia Leaders’ Virtual Summit.
  • In 2021, the prime ministers of both the countries met during   COP26  at Glasgow.
  • In 2022, there has been a series of high-level engagements and exchange of ministerial visits in 2022 and in 2023 including India-Australia virtual summit and Foreign Ministers meet. Several key announcements were made during 2^nd India-Australia Virtual Summit including:
    • A Letter of Intent on Migration and Mobility Partnership Arrangement to foster the exchange of skills.
  • Defence Cooperation:
    • The 2+2 Ministerial Dialogue took place in September 2021, and the Deputy Prime Minister and Defence Minister of Australia visited India in June 2022.
    • The Mutual Logistics Support Agreement (MLSA) was signed during the Virtual Summit in June 2020 to enhance defence cooperation.
    • Joint military exercises:
      • Australia will host the “Malabar” exercises in August 2023, with participation from India, Japan, and the US.
      • India has been invited to join the Talisman Sabre exercises in 2023.
    • China Factor:
      • Australia-China ties became strained due to several reasons including Australia banning Huawei from 5G network, call for enquiry into the origins of Covid-19 and Slamming china’s human rights violations in Xinjiang   and Hongkong.
        • China responded by imposing trade barriers on Australian exports, and by cutting off all ministerial contact.
      • India is facing Chinese aggression along the border which has been highlighted by incidents such as  Galwan valley clash.
      • Both Australia and India support a rules-based international order and they are seeking to forge regional institutions in the Indo-Pacific which are inclusive, promote further economic integration.
        • The countries’ participation in Quad (India, Australia, US, Japan) is an example of their convergence of interests, based on shared concerns.
      • Multilateral Cooperation:
        • Both are members of the Quad, Commonwealth, Indian Ocean Rim Association (IORA), ASEAN Regional Forum Asia Pacific Partnership on Climate and Clean Development, and have participated in the East Asia Summits.
        • Both countries have also been cooperating as members of the Five Interested Parties (FIP) in the World Trade Organization
        • Australia is an important player in Asia Pacific Economic Cooperation (APEC) and supports India’s membership of the organisation.
      • Economic Cooperation:
        • Economic Cooperation Trade Agreement (ECTA):
          • It is the first free trade agreement signed by India with a developed country in a decade which entered into force in December 2022.
        • Reduction in Duties:
          • It has resulted in an immediate reduction of duty to zero on 96% of Indian exports to Australia in value (that is 98% of the tariff lines) and zero duty on 85% of Australia’s exports (in value) to India.
        • Supply Chain Resilience Initiative (SCRI):
          • India and Australia are partners in the trilateral arrangement along with Japan which seeks to enhance the resilience of supply chains in the Indo-Pacific Region.
        • Bilateral trade:
          • Australia is the 17^thlargest trading partner of India and India is Australia’s 9^th largest trading partner.
          • Bilateral trade between India and Australia was US$ 27.5 billion in 2021, there is potential for it to reach around US$ 50 billion in five years.
        • Cooperation in Education Sector:
          • The Mechanism for Mutual Recognition of Educational Qualifications (MREQ) was signed in March 2023. This will facilitate mobility of students between India and Australia.
            • Deakin University and University of Wollongong are planning to open campuses in India.
            • More than 1 lakh Indian students are pursuing higher education degrees in Australian universities,making Indian students the second largest cohort of foreign students in Australia.
          • Cooperation on Clean Energy:
            • In February 2022, countries signed a Letter of Intent on New and Renewable Energy for cooperation to reduce the cost of renewable energy technologies, including ultra low-cost solar and clean hydrogen.
            • India announced Australian Dollars(AUD) 10 million for Pacific Island Countries under the International Solar Alliance (ISA).
            • Both the countries committed to USD 5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.

What are the Challenges in India-Australia Relations?

• Adani coal mine controversy:
  • There was controversy over the Adani coal mine project in Australia, with some activists protesting against it, which created a strain in the relationship between the two countries.
• Visa issues:
  • There have been concerns over visa restrictions for Indian students and professionals seeking to work in Australia.
• Violence with Indian Diaspora:
  • Attacks on Indian Diaspora and temples in the recent past by Khalistan supporters have been a issue of strain.

Way Forward

• The India-Australia relations have strengthened in recent years due to shared values, interests, geography, and objectives.
• Both countries envision a free, open, inclusive, and rules-based Indo-Pacific region,unilateral or coercive actions are not preferred and are to be avoided in resolving any disagreements or conflicts.
• Renewed relationship between India- Australia through initiatives such as India Australia bilateral Summits give an opportunity to further strengthen the ties between the two countries to play an active role in ensuring rule-based order in the Indo-Pacific.

General Studies Paper 3

Context: According to the latest Findex Report – 2021 by the World Bank, around one-third of adults still lack access to formal financial services.

About financial inclusion:

• Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs– transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way.

Importance of financial inclusion:

• Financial inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals.  
• The G20 committed to advancing financial inclusion worldwide and reaffirmed its commitment to implement the G20 High-Level Principles for Digital Financial Inclusion. 
• The World Bank Group considers financial inclusion a key enabler to reduce extreme poverty and boost shared prosperity.
• Financial inclusion has been linked to up to 14% growth in the gross domestic product in developing economies.

Challenges in achieving financial inclusion:

• Lack of access to basic infrastructure
• Low financial literacy
• Limited trust in formal financial institutions
• Insufficient regulatory framework
• High transaction costs
• Lack of diversity in financial services

How India’s G-20 presidency helps in improving financial inclusion:

• The theme of India’s G20 Presidency, “Vasudhaiv Kutumbakam,” underlines the message of equitable growth and a shared future for all.
• The G20 Global Partnership for Financial Inclusion working group met under the grouping’s Global Partnership for Financial Inclusion (GPFI) initiative.
• The G20 Financial Inclusion Action Plan (FIAP) aims to prevent future economic crises by encouraging conditions that promote its objectives of financial inclusion and stability.
• Four major drivers have been highlighted in the new G20 FIAP to lay the groundwork for further progress toward financial inclusion.
  • the acceptance of the 2030 Agenda for sustainable development as a worldwide framework for sustainable development
  • rapid development and penetration of digital breakthroughs,
  • greater emphasis on underprivileged populations,
  • mainstreaming financial inclusion.

Financial Inclusion Schemes in India

• Pradhan Mantri Jan Dhan Yojana (PMJDY)
• Atal Pension Yojana (APY)
• Pradhan Mantri Vaya Vandana Yojana (PMVVY)
• Stand Up India Scheme
• Pradhan Mantri Mudra Yojana (PMMY)
• Pradhan Mantri Suraksha Bima Yojana (PMSBY)
• Sukanya Samriddhi Yojana
• Jeevan Suraksha Bandhan Yojana
• Credit Enhancement Guarantee Scheme (CEGS) for Scheduled Castes (SCs)
• Venture Capital Fund for Scheduled Castes under the Social Sector Initiatives
• Varishtha Pension Bima Yojana (VPBY)

What should be done for improving financial inclusion?

• A multifaceted strategy is needed to create an inclusive and sustainable digital economy.
• Focus on digital identification, banking, payments, and regulation: This will provide opportunities to enhance global economic stability and streamline service delivery. Digital banking should focus on promoting stability, transparency, fairness, inclusivity, and interoperability.
• Focus on Digital identity systems: These include India’s Aadhaar and national ID schemes in Morocco and the Philippines. These systems help to streamline the delivery of services and payments.
• Create a digital stability board: This will aid in advancing digital regulation by supporting better data-sharing legislation and data management for individuals and small- and medium-sized businesses.
• Adaptation of laws and institutions to the digital revolution: Adaptation is required especially in areas such as competition policy, regulatory regimes, innovation ecosystems, workforce development, social protection frameworks, and tax policies.
• Promote sustainability and inclusivity in the digital economy: These can be done by a)establishing a supportive and enabling e-commerce environment, b) developing inclusive digital infrastructure, c) adapting policies and institutions to digital transformation, d) harnessing digital transformation inclusively, and e) using digital public goods.
• Make financial inclusion a top priority for G20 countries: The G20 working group should consider strategies to strengthen the financial system’s foundation, facilitate remittance flows, and lower the price of remittance transfers.

Along with the above measures, global nations should also focus on collaborating with international organisations to unlock the potential of millions of individuals and communities and foster sustainable, inclusive economic growth.

General Studies Paper 3

Context: Recently, the return to the Old Pension System has been proposed by sections.

What are some facts about OPS and NPS?

• OPS is a “pay-as-you-go” scheme. The contributions of current government employees are used to fund the pension liabilities of past government employees. In OPS, the employees are guaranteed an amount equivalent to 50% of their last salary in perpetuity.
• NPS was established by the NDA government in 2003. It is a defined contribution scheme. The employees invest a certain fraction of their salary that is complemented by a contribution from the government.

What are the arguments against OPS?

• It will have fiscal implications. The only way the OPS can be made sustainable is by either having more government employees or by more borrowing. More employees will lead to inefficiency in governance.
• States’ finances will be crippled under the pension burden. A recently released report by the Reserve Bank of India on states’ finances provides a detailed breakdown of states’ expenditures on pensions.
• In Rajasthan, the state’s expenditure on pensions as a percentage of its own tax revenues is 28%. In contrast, for example. In Maharashtra, the same percentage is 14%.
• States will have to cut down their expenses. Expenses on health, education, and other long-term assets will naturally be the first ones to go.
• The losers will be the majority of poor people who will be denied basic services and support from the state.The winners will be the minority of wealthy government employees.
• This is a rare example of a policy that explicitly takes away the wealth of the poor to distribute it to the rich. The retiring government employees are amongst the top 5% of income earners in India.
• Finally, the sixth and the seventh pay commissions revised the salaries of government employees upwards assuming that they would be under NPS. Therefore, any switch to OPS now is a breach of trust of all citizens.

How can OPS make political sense?

• There can be two explanations. One benign, and one disturbing.
• Benign explanation– Freebies are not mutually exclusive. Parties desperate to win elections are promising everything to everyone. In the short run, they may even fulfil their promise. Finally, they will cut down on expenditures such as defence, healthcare.
• If the current dispensation at the Centre is re-elected, opposition parties will inherit an even better fiscal situation when they eventually come back to power.
• Parties may also have miscalculated the political costs and benefits of OPS.
• Disturbing explanation– The Opposition has realised that the main obstacle in its quest for power at the Centre is the last-mile delivery of welfare schemes.
• The success of these schemes eventually rests on the ability of the lowest layer of government employees to deliver these schemes. OPS may incentivise government employees to sabotage these welfare schemes.

General Studies Paper 2

Context: 

• Sri Lankan President announced that the country had cleared the last hurdles to be approved for a $2.9 billion bailout from the IMF.
• Background: The country has been reeling from the covid crisis, economic mismanagement by the Rajapakse regime, mounting debts → soaring inflation → GDP/ Exports collapse → Currency collapse.

What the IMF bailout would mean for Sri Lanka?

• Brings a lot of creditworthiness to the entire system and confidence.
• A lot of other agencies like the World Bank, AIIB, and ADB, have lined up funds to come in.
• Debt becomes more sustainable → access to the capital market → stabilizing the economy.

How India supported its neighbor?

• Contrary to China, India’s support has come unconditionally, and more promptly.
• India’s support to Sri Lanka (worth a combined $4 bn) includes –
  • Shipments of grain, fuel, essentials, medicines
  • Credit lines
  • Debt repayment relief
  • Support at the IMF to work on the bailout package
  • Support at the G20 and BIMSTEC

How did Sri Lanka respond to India’s support?

• “India had really come to our rescue, India had provided us with a lifeline which allowed us to stay afloat during a very difficult time,” Minister of Foreign Affairs of Sri Lanka.
• In a speech on Women’s day, Sri Lankan President thanked 3 women – Nirmala Sitharaman, Janet Yellen, and Kristalina Georgieva for helping Sri Lanka.
• Sri Lanka is looking for more investments from India in IT, pharmaceuticals, the energy sector, education, etc.

Challenges ahead:

• For India:
  • The controversy over Adani projects in Sri Lanka(2 wind power plants in Mannar and Pooneryn areas of [northern] Sri Lanka, West Container Terminal at Colombo Port, etc).
  • The opposition had raised issues over the manner of choosing the company.
• For Sri Lanka:How can Sri Lanka balance its ties with China and India?
  • Sri Lanka has beena very close friend of India and doesn’t want to hurt India’s security concerns.
  • Despite all the problems China is also India’s biggest [trading] partner.
  • Similarly, Sri Lanka also wants to work with Indians and the Chinese, and the rest.

Conclusion:

Sri Lankan crisis and reversal is a good example for the region – it is about being more sensitive to a neighbor’s needs rather than outspending rivals.

General Studies Paper 3

Context:

India’s travel and tourism sector will be the key axis of development in the coming years. Budget 2023 has outlined the path to developing tourism in mission mode. The tourism sector accounts for 10% of the total employment directly and provides 8% of the overall GDP.

What are the efforts by the Indian government for the growth of tourism?

• The Budget Session addressed all the “6Ps” effectively by covering destination planning and management, infrastructure development, sustainability and safety, development of human capital, policy, and process interventions to align the Centre and states, and promoting the narrative of Indian tourism.
• The Union budget has listed six themes for the development of the sector — convergence, public-private participation, creativity, innovation, digitisation and development of destinations.
• Tourism remains a state subject. The central tourism department is making efforts to move it to the Concurrent List. The idea of a National Tourism Board is under consideration by the government.
• Prime Minister Modi has a vision to develop50 destinations across the country.

Way forward:

• There is a need for collaboration between the government, private sector, and local communities in developing and promoting tourism. It stimulates creativity, enhances competitiveness.
• Technology adoption will help in the growth of tourism. Travel experiences are becoming more personalised, immersive, and interactive.
• AR/VR can help travelers explore destinations before they even arrive. It can provide virtual tours and simulations of famous landmarks, historical sites, and cultural experiences. AI-powered chatbots and digital assistants can help travelers plan their trips, recommend personalized activities, and offer real-time assistance while
• A coordinated approach boosted by the adoption of technology resolves the issue of low spending by foreign tourists in India. On average, foreign tourists spend 33% less than they would in the US.
• The tourism sector requires a comprehensive strategy that addresses the six key pillars of planning, place, people, policy, process, and promotion.
• Granting tourism infrastructure status will provide further impetus to the growth of the sector.