General Studies Paper -2

Context: The foreign minister of Maldives has arrived in India for a three-day visit. It is aimed at bolstering bilateral ties in key areas such as trade and investment.

Maldives & its Significance

• Strategic Importance: The Maldives is strategically located in the Indian Ocean, and its stability and security are of interest to India.
• Trade Route: Situated along crucial maritime trade routes between the Gulf of Aden and the Strait of Malacca, the Maldives acts as a “toll gate” for nearly half of India’s external trade and 80% of its energy imports.
• Counterbalancing China: Maldives presents an opportunity for India to counterbalance China’s growing influence in the Indian Ocean, fostering regional balance of power.

Brief on India – Maldives

• Participation in Multiple Forums: Both nations are founding members of the South Asian Association for Regional Cooperation (SAARC), the South Asian Economic Union and signatories to the South Asia Free Trade Agreement.
• Economic partnership: India emerged as Maldives’ largest trade partner in 2023.
  • India is one of the biggest investors and tourism markets for the Maldives, with significant trade and infrastructure projects underway. In 2023, India is the leading source market for Maldives with a 11.8% market share.
• Defense and Security Cooperation: Since 1988, defence and security has been a major area of cooperation between India and Maldives.
  • A comprehensive Action Plan for Defence was also signed in 2016 to consolidate defence partnership.
  • Estimates suggest that almost 70% of Maldives’ defence training is done by India.
• Connectivity: The Male to Thilafushi Link project, popularly known as the Greater Male Connectivity Project (GMCP), is a USD 530 million infrastructure project.
  • The project aims to connect Male to Villingili, Gulhifalhu and Thilafushi islands through a series of bridges, causeways and roads.
  • The project is crucial for the proposed Gulhifalhu Port, and will be a major catalyst for the Maldivian economy.

Challenges in Relations

• Domestic turmoil in the Maldives: Recent political upheavals and changes in government create uncertainty and complicate long-term cooperation projects.
• Chinese Influence: China’s growing economic presence in the Maldives, evidenced by investments in infrastructure projects and debt-trap diplomacy, is perceived as a challenge to India’s strategic interests in the region.
• Non-traditional threats: Piracy, terrorism, and drug trafficking remain concerns in the region, requiring continuous collaboration and intelligence sharing between India and the Maldives.
• Trade imbalance: The significant trade imbalance between India and the Maldives leads to resentment and calls for diversifying trade partnerships.

Way Ahead

• The evolution of India-Maldives relations reflects a combination of geopolitical dynamics, changes in leadership, and shared regional interests.
• India is steadfast in its commitments towards Maldives and has always walked the extra mile towards building relations.

By acknowledging and addressing the challenges, India and the Maldives can navigate the complexities of their relationship and build a stronger, more resilient, and mutually beneficial partnership for the future.

General Studies Paper -3

Context: Nuclear Power Corporation of India Ltd (NPCIL) has invited requests for proposals (RFPs) from private players to set up Bharat Small Reactors (BSRs).

About

• It is the first formal move by the Union government to decentralise the country’s nuclear power sector.
• Proposals are made for setting up 220 MW Bharat Small Reactors (BSR) for captive use.
  • BSRs are Pressurised Heavy Water Reactors (PHWR) with an impeccable safety and excellent performance record.
  • BSRs can provide a sustainable solution for decarbonization of hard to abate industries.
• Background: Union Budget for FY 2024-25 proposed partnerships with the private sector for research and developing Bharat Small Reactors (BSR), Bharat Small Modular Reactors (BSMR) as well as newer nuclear energy technologies.
  • This announcement is aimed at India’s ambitious pursuit of the decarbonisation of energy generation and achieving 500 Gigawatts of non-fossil fuel-based energy generation in India by 2030.

Nuclear Energy

• Nuclear power is not renewable energy but it is a zero-emission clean energy source.
• It generates power through fission, which is the process of splitting uranium atoms to produce energy.
  • The heat released by fission is used to create steam that spins a turbine to generate electricity without the harmful by-products emitted by fossil fuels.

Need for Private Players in Nuclear Sector

• Nuclear Capacity: India’s plans to increase its nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32 and eventually 100 GW by 2047.
• India’s Targets: To reduce the emission intensity of its GDP by 44% by 2030 from the 2005 level.
  • To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
• Other Reasons:
  • India is chasing nuclear energy as a source of power because it cannot reduce its emission intensity solely through renewable energy like solar, wind and hydro.
  • Even if it does achieve its Nationally Determined Contribution (NDC) target only through renewable energy, the cost of power then would be very expensive.

Governance

• NPCIL: India’s nuclear sector is governed by the Atomic Energy Act, 1962, under which only government-owned entities such as NPCIL can generate and supply nuclear energy.
  • There has been no private sector involvement in India’s nuclear power sector so far.
• Conditions for Private Stakeholders:
  • They have to find the land and incur the entire capex as well as opex including taxes.
  • After completion of the plant, the asset will have to be transferred to NPCIL for operation.
  • The power plant will be given the status of captive generating plant and the private entity will have full right on the electricity generated from the plant.
  • The firm will also be allowed to sell the power to other users.

Arguments in Favour of Private Sector Participation in Nuclear Power

• Improved Efficiency and Innovation: Private companies bring technological advancements, operational efficiency, and innovation, potentially reducing costs and improving safety standards.
• Increased Investment: Private players can attract more capital, helping to address the financial challenges of large nuclear projects.
• Faster Project Execution: Private entities, driven by competition and profit incentives, can complete nuclear projects faster and more effectively compared to government processes.
• Expertise and Global Standards: Private companies can bring global best practices, cutting-edge technology, and expertise to the nuclear industry, improving overall standards.
• Job Creation: The entry of private players can lead to increased employment opportunities in the nuclear sector, from construction to operations.

Arguments Against

• Safety and Security Risks: Private players may prioritize cost-cutting over rigorous safety measures, potentially risking catastrophic accidents.
• Lack of Transparency: Private companies may not be as transparent as public institutions, leading to a lack of accountability in the management of sensitive nuclear technologies.
• National Security Concerns: Involving private entities in nuclear power generation could raise concerns about the potential for foreign ownership, control, or influence over critical national infrastructure.
• Limited Regulatory Control: Ensuring strict regulatory oversight of private companies might be challenging, potentially leading to lapses in compliance with safety, environmental, and operational standards.
• Profit Motive Over Public Welfare: Private companies may prioritize profitability over public welfare, potentially compromising on environmental protections, worker safety, and the long-term sustainability of nuclear energy.

Way Ahead

• Clear Regulatory Framework: Establish a robust regulatory environment to ensure safety, compliance, and transparency, addressing concerns about accountability and national security.
• Public-Private Partnerships (PPPs): Promote partnerships where the government maintains oversight, while private players handle operations, innovation, and investment, ensuring a balance of interests.

Gradual Implementation: Start with pilot projects and small-scale initiatives to test private sector involvement, ensuring risk management before large-scale implementation.

General Studies Paper-3

Context: As India steps into 2025, its growth trajectory, while promising, faces several challenges that need to be addressed through comprehensive reforms to ensure sustained growth.

Economic Landscape of India (2025)

• GDP Growth: Over the past three years, the Indian economy performed well above expectations, growing at 8.7% in FY22, 7.2% in FY23, and 8.2% in FY24, driven by public capital expenditure, substantial investments in Global Capability Centres (GCCs), and surging service exports.
  • It slowed to 5.4% in the Q2 of the fiscal year 2024-25, a significant drop from the previous quarters that has been attributed to a combination of global geopolitical tensions, domestic inflation, and cautious private sector investment.
• Fiscal Prudence: According to the IMF, a projected decline in fiscal deficit from 6.4% to 5.9% of GDP in FY24 will stabilize public debt at around 83% of GDP — a promising indicator of sustainability, given India’s growth outlook.
  • The fiscal deficit target of 4.5% for FY2025-26 may allow room for increased government spending.
• Government Spending: Increased government expenditure, particularly in infrastructure and social sectors, is expected to boost economic activity.
  • The recent reduction in the Cash Reserve Ratio (CRR) by the RBI has freed up funds for banks to lend, stimulating investment.
• Capital Expenditure: The Union Budget 2023-24 allocated ₹10 lakh crore for capital investment, representing 3.3% of GDP.
  • National Infrastructure Pipeline (NIP) aims to invest ₹111 lakh crore in infrastructure projects by 2025, covering sectors like energy, roads, railways, and urban development.

Key Concerns

• Geopolitical Headwinds: Global economic uncertainties, such as US policy shifts and geopolitical tensions, pose additional risks.
  • Changes in US economic policies, including fiscal measures and interest rates, can have a significant impact on India’s economy.
  • Additionally, global trade dynamics and commodity prices can influence India’s inflation and growth prospects.
• Savings-investment Gap: The RBI’s latest Financial Stability Report shows net financial savings of households fell to 5.3% of GDP in FY23 from 7.3% in FY22, sharply below the 8% average of the previous decade.
• Fiscal Prudence: The RBI has flagged concerns over a sharp increase in expenditure by states on various subsidies, including farm loan waivers and cash transfers.
  • Other concerns are private sector investment, employment generation and economic disparities etc.

Key Reforms and Initiatives

• Goods and Services Tax (GST): It unified the country into a single market, simplifying the tax structure and boosting revenue collections.
  • In FY 2023-24, GST collections soared to ₹18 lakh crore, averaging ₹1.68 lakh crore monthly.
• Digital India initiative: It has been a game-changer, driving technological adoption and innovation across sectors.
  • It has not only enhanced governance but also spurred the growth of over 150,000 startups, creating more than 1.5 million jobs.
• Financial Inclusion and Poverty Reduction: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has transformed access to banking services, with over 53 crore accounts opened by October 2024.
  • It has brought millions of previously unbanked individuals into the formal financial fold, reducing economic inequality.
  • According to NITI Aayog’s report, 24.82 crore people have escaped multidimensional poverty between 2013-14 and 2022-23.
• Market Performance and Investor Confidence: India’s market performance has been exceptional, with benchmark indices rising 28% in FY 2023-24 while maintaining low volatility.
  • It has bolstered investor confidence, attracting significant foreign investments and further strengthening the economy.

Suggested Reforms for Sustained Economic Growth in India

• Human Capital Development: Investing in human capital is crucial for boosting labor productivity and overall economic growth.
  • It involves improving the quality of education, enhancing skill development programs, and ensuring access to basic healthcare.
  • The Global Human Capital Report highlights India’s need to improve its human resource capital, which is essential for competing globally.
• Technological Advancements: Embracing technology is vital for increasing productivity and fostering innovation.
  • Enhancing technology readiness can significantly contribute to economic growth by improving efficiency across various sectors.
• Labor Market Reforms: Reforming labor laws to make them more flexible and industry-friendly is essential for attracting investments and creating jobs.
  • The integration of platforms like the e-Shram portal aims to provide comprehensive services to labor, including employment and skilling opportunities.
• Land and Property Reforms: Efficient land administration and urban planning are critical for sustainable development.
  • The introduction of the Unique Land Parcel Identification Number (ULPIN) and the digitization of land records are steps towards improving land management and reducing disputes.
• Financial Sector Reforms: Strengthening the financial sector is key to supporting economic growth.
  • The government plans to release a strategy document outlining the future vision for the financial sector, focusing on increasing its size, capacity, and skills.
  • Simplifying rules for Foreign Direct Investment (FDI) and promoting the use of the Indian Rupee for overseas investments are also part of this strategy.
• Tax Reforms: The Union Budget 2024-25 includes measures aimed at providing tax relief to the middle class, encouraging innovation, and fostering economic growth.
• Infrastructure Development: The Production-Linked Incentive (PLI) scheme aims to attract investments and enhance production capacity in key sectors. Developing sustainable infrastructure and promoting green technologies are also important for long-term growth.
• Promoting Inclusive Growth: Ensuring that economic growth benefits all sections of society is essential for sustainable development.
  • Government initiatives aimed at empowering the middle class, reducing poverty, and promoting social equity are critical for achieving inclusive growth.

Conclusion

• India’s path to sustained economic growth requires a multifaceted approach, focusing on human capital, technological advancements, labor market reforms, land and property management, financial sector strengthening, tax simplification, infrastructure development, and inclusive growth.
• By implementing these key reforms, India can achieve its vision of becoming a $55 trillion economy by 2047.

General Studies Paper-3

Context: India recently submitted its Fourth Biennial Update Report (BUR-4) detailing its Greenhouse Gas Emission (GHG) inventory and the efforts it has taken to curb emissions to the UNFCCC.

Key Highlights of the Report

• GHG Emission Reduction: India’s GDP emissions intensity reduced by 36% from 2005 to 2020, on track to meet the target of 45% reduction by 2030.
• Sectoral Emissions: Energy (75.66%), Agriculture (13.72%), Industrial Processes (8.06%), and Waste (2.56%).
• Breakdown of GHGs: CO2 (80.53%), methane (13.32%), and nitrous oxide (5.13%).
• Progress on NDC Targets: Emission intensity of GDP was reduced by 36% from 2005 to 2020.
  • Non-fossil fuel capacity reached 46.52%, with renewable power capacity growing to 203.22 GW.
  • Additional 2.29 billion tonnes CO2 absorbed through afforestation (2005–2021).
  • India continues to strive towards its climate goals, including the ambitious target of achieving net-zero emissions by 2070.

Challenges Identified

• Financial Needs: Enhanced funding for scaling mitigation and adaptation efforts.
• Technology: Advanced tools needed for renewable energy, carbon capture, and efficiency improvements.
• Capacity Building: Strengthened institutional frameworks and workforce skills.

What proactive steps  India has taken to combat climate change?

• Renewable Energy Expansion: India aims to achieve 500 GW of installed renewable energy capacity by 2030, with a focus on solar, wind, and other clean energy sources.
  • The National Solar Mission has significantly boosted solar power generation capacity across the country.
• Energy Efficiency Initiatives: Like Perform, Achieve, and Trade (PAT) scheme and UJALA Program.
• Increasing Forest and Tree Cover: Forest and tree cover currently stands at 25.17% of the country’s total geographical area and has consistently increased.
• Supporting Global Climate Initiatives: International Solar Alliance (ISA), and Coalition for Disaster Resilient Infrastructure (CDRI).
• Other National Schemes: PM-Surya Ghar Muft Bijli Yojana, National Bio-Energy Programme, and National E-Bus Programme etc.
• Lifestyle for Environment (LiFE) Movement: Focuses on encouraging sustainable living practices to reduce environmental impact.

General Studies Paper -3

Context: Recently, the Reserve Bank of India (RBI) released its Financial Stability Report (FSR), December 2024 highlighting several critical aspects of the Indian and global financial landscapes.

• Financial Stability Report (FSR) is published by RBI bi-annually on behalf of the Financial Stability and Development Council (FSDC).

Key Highlights of the Report

• Stress Tests and Resilience: Macro stress tests conducted by the RBI demonstrate that most SCBs have sufficient capital buffers to withstand adverse scenarios.
  • The resilience of mutual funds, clearing corporations, and non-banking financial companies (NBFCs) is also validated through these tests.
• Government Finance: The central government’s debt-to-GDP ratio is expected to decrease from 62.7% in 2020-21 to 56.8% by 2024-25.
  • Similarly, states’ outstanding liabilities are projected to decline from 31% to 28.8%.
• Economic Growth Projections: The report projects that the Indian economy will expand by 6.6% in FY25 (2024-25), driven by a revival in rural consumption, increased government spending, and strong services exports.
• Rising Non-Performing Assets (NPAs): The report indicates a potential rise in the share of bad loans among commercial banks.
  • Under baseline stress scenarios, the Gross Non-performing Asset (GNPA) ratio could increase from 2.6% in September 2024 to 3% by March 2026.
• Domestic Financial Stability: Despite global uncertainties, the Indian financial system remains robust.
  • The soundness of Scheduled Commercial Banks (SCBs) is supported by strong profitability, and adequate capital and liquidity buffers.
  • The return on assets (RoA) and return on equity (RoE) for banks are at decadal highs.
• Sectoral Insights: The FSR highlights concerns in specific sectors, such as microfinance and consumer credit, which require close monitoring.
• Insurance Sector: It maintains a robust solvency ratio, indicating its stability.

Key Concerns Highlighted in the FSR of RBI

• High Public Debt: Although the Union government’s debt-to-GDP ratio is expected to decrease from its pandemic peak, it remains a concern for long-term fiscal sustainability.
• Global Economic Vulnerabilities: These include stretched asset valuations, high public debt, prolonged geopolitical conflicts, and emerging technological risks.
  • These factors pose medium-term risks to global financial stability.
• Geopolitical Conflicts: Prolonged geopolitical conflicts can disrupt global supply chains, affect commodity prices, and lead to financial market volatility, all of which can have adverse effects on the Indian economy.
• Emerging Technological Risks: Cybersecurity threats, data privacy issues, and the potential for technological disruptions in financial services are highlighted as areas requiring close monitoring and robust regulatory frameworks.
• Climate Change: Extreme weather events and the transition to a low-carbon economy could have significant implications for financial institutions and the broader economy.

General Studies Paper -2

Context: The One Nation One Subscription (ONOS) initiative is a landmark step aimed at democratizing access to global scholarly knowledge in India. It aligns with the broader goals of NEP 2020 and ViksitBharat@2047.

Implementation of ONOS

• Role of INFLIBNET: The Information and Library Network Centre under UGC will centrally manage the subscription and distribution, ensuring seamless digital access to resources. A centralized platform will simplify access and reduce administrative burdens.
• Funding: A ₹6,000 crore budget has been allocated for the scheme’s first phase (2025–2027).
• Phase I (2025–2027): Establish the framework, provide access to research materials, and negotiate Article Processing Charges (APCs) for Indian researchers.

Benefits

• Democratization of Knowledge: Provides equitable access to international research resources across tier-2 and tier-3 cities, addressing regional disparities in research opportunities.
• Boosts Research Quality: Access to high-quality journals enhances research capabilities, enabling Indian researchers to contribute to cutting-edge global innovations.
• Cost Efficiency: Centralized funding reduces duplication of subscriptions by individual institutions, saving costs for HEIs and research centers.
• Discounts on Article Processing Charges (APCs) make publishing in high-impact journals more accessible.
• Fosters Collaboration: Integration with global research communities promotes interdisciplinary and international collaborations, elevating India’s global research footprint.
• Support for National Development: Enhances India’s R&D ecosystem, supporting innovation in critical areas like STEM, medicine, and social sciences, which are pivotal for economic growth and self-reliance.
• Improved Academic Infrastructure: Complements initiatives like the Anusandhan National Research Foundation (ANRF), creating a more robust research infrastructure.

Challenges

• Administrative Complexity: Coordinating access for 6,300 institutions with diverse needs may pose significant logistical and administrative challenges.
• Digital Divide: Effective utilization of digital resources may be hindered by infrastructure gaps in tier-2 and tier-3 cities, such as unreliable internet connectivity or lack of digital literacy.
• Limited Scope: The scheme covers only select international journals, and many researchers might still require access to resources not included in Phase I.
• Sustainability: Long-term funding for such a large-scale initiative requires careful planning to ensure it remains viable without compromising quality.
• Monitoring and Evaluation: Measuring the actual impact of the initiative on research output and innovation can be challenging.
• Dependency on Global Publishers: Heavily relying on foreign publishers may limit India’s leverage in negotiations and could lead to higher costs over time.

Way Ahead

• Strengthen Infrastructure: Improve digital connectivity and provide training in digital resource usage for institutions in remote areas.
• Phase Expansion: Gradually expand ONOS to include more journals, databases, and even regional or Indian language resources to broaden access.
• Promote Open Access: Encourage Indian researchers to utilize Open Access (OA) platforms and build national repositories for sharing research outputs freely.
• Enhance Negotiation Leverage: Collaborate with other nations to negotiate better terms with publishers, including lower APCs and subscription costs.
• Focus on Research Outputs: Develop metrics to assess the impact of ONOS on research quality, innovation, and India’s global rankings in R&D.
• Support Regional Institutions: Provide additional resources for smaller or less-resourced institutions to make full use of ONOS benefits.

Public Awareness and Training: Launch awareness campaigns and workshops for researchers, faculty, and students on maximizing the use of ONOS resources.

General Studies Paper -3

Context: The rise of natural farming among Shimla’s apple growers marks a transformative shift toward sustainable agriculture.

Natural Farming

• Natural farming is an approach to agriculture that emphasizes working with nature’s processes to grow crops in a sustainable and holistic way.
• It follows local agro-ecological principles rooted in indigenous knowledge, location-specific technologies, and adaptations to local agro-ecology.
• One of the central ideas of natural farming is to minimize reliance on external inputs and create a system that can sustain itself over the long term.
• Key practices of natural farming include:
  • Minimal Soil Disturbance;
  • Use of Organic Inputs;
  • Biodiversity and Polyculture;
  • Water Conservation;
  • Natural methods to manage pests;
  • Synthetic fertilizers, herbicides, and pesticides are avoided.

Natural Vs. Organic Farming

• Natural farming emphasizes minimal intervention with nature, avoiding tilling, fertilizers, and even weeding.
• It focuses on creating self-sustaining ecosystems with little to no external inputs, trusting nature to maintain soil health and manage pests.
• Organic farming follows specific certification standards that prohibit synthetic chemicals and genetically modified organisms (GMOs).
• It allows the use of organic fertilizers, pesticides, and tilling.
• It tends to be more structured and regulated than natural farming.

Natural Farming in Practice

• There are several states practicing Natural Farming. Prominent among them are Andhra Pradesh, Chhattisgarh, Kerala, Gujarat, Himachal Pradesh, Jharkhand, Odisha, Madhya Pradesh, Rajasthan, Uttar Pradesh and Tamil Nadu.

Benefits of Natural Farming

• Environmental Sustainability: It helps protect soil health, reduces pollution, and supports biodiversity.
• Resilience to Climate Change: Natural farming promotes agricultural practices that can adapt to changing climates, such as drought-tolerant crops and sustainable water use.
• Healthier Food: Food produced without chemical fertilizers and pesticides is considered safer and more nutritious.
• Economic Benefits: Over time, natural farming can reduce costs related to chemical inputs and increase the resilience of farms, potentially leading to higher yields.

Challenges

• Learning Local Ecosystem: It requires a deep understanding of local ecosystems, which can take time to learn and apply effectively.
• Labor-Intensive: In the transition period, natural farming is more labor-intensive and initially produces lower yields compared to conventional farming.
• Market Demand: Although organic products are gaining popularity, natural farming does not always meet mainstream market expectations or certification standards.

Government Initiatives

• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): The promotion of drip and sprinkler irrigation systems under this program can be adapted to natural farming practices.
• National Mission on Natural Farming (NMNF): The Union Cabinet announced the NMNF as a standalone Centre-sponsored scheme under the Ministry of Agriculture & Farmers’ Welfare.
  • It aims to promote natural farming among one-crore farmers across the country.
  • It will be implemented in 15,000 clusters in Gram Panchayats, covering approximately 1 crore willing farmers.
• Soil Health Card Scheme: Launched in 2015, this initiative provides farmers with soil health cards that offer detailed information about the nutrient content and pH levels of their soil.
• National Mission on Sustainable Agriculture (NMSA): Launched in 2014, encourages the adoption of sustainable farming techniques, including natural farming, to improve soil health, conserve water, and enhance productivity.
• National Organic Farming Research Institute (NOFRI): It focuses on improving soil health, developing organic farming technologies, and promoting sustainable agricultural practices.
• States Practicing: There are several states practicing Natural Farming.
  • Prominent among them are Andhra Pradesh, Himachal Pradesh, Gujarat, Kerala, Jharkhand, Odisha, Madhya Pradesh, Rajasthan, Uttar Pradesh and Tamil Nadu.

Way Ahead

• The Government is increasingly recognizing the importance of natural farming in addressing environmental challenges, improving farmer incomes, and ensuring food security.
• These efforts, when combined with local farmer participation and state-level innovation, hold great promise for the future of sustainable agriculture in India.

General Studies Paper -3

Context: India’s manufacturing sector has witnessed remarkable growth this year, underscoring its transformation into a global powerhouse.

About

• Toy exports grew by 239%, and mobile phone production by 600%.
• By 2024, India ranked among the top four nations with the largest foreign exchange reserves, exceeding $700 billion.
• In the Global Innovation Index 2024, the country climbed to 39th place up from the 81st in 2015.

India’s Manufacturing Sector

• Manufacturing exports have registered their highest ever annual exports of US$ 447.46 billion with 6.03% growth during FY23.
• By 2030, the Indian middle class is expected to have the second-largest share in global consumption at 17%.
• India’s gross value added (GVA) at current prices was estimated at US$ 770.08 billion as per the quarterly estimates of the first quarter of FY24.
• India’s e-commerce exports are projected to grow from US$ 1 billion to US$ 400 billion annually by 2030, aiding in achieving US$ 2 trillion in total exports.
• India’s smartphone exports surged by 42% in FY24, reaching US$ 15.6 billion, with the US as the top destination.

Challenges faced by India’s manufacturing sector

• Technological gap: Indian manufacturing lags in the adoption of Industry 4.0 technologies such as automation, IoT, and AI, reducing global competitiveness.
• Skill Gap: There is a significant gap between the skills of the available workforce in India and the needs of modern manufacturing.
• Supply Chain Disruptions: High dependency on imported raw materials and components, especially from China, exposes the sector to global supply chain disruptions.
• Governance Issues: Frequent changes in industrial policies along with delays in their implementation create uncertainty for investors.
• Global Competition: India faces stiff competition from countries like China, where manufacturing costs are lower due to economies of scale and more efficient infrastructure.

Initiatives taken by Government

• Goods and Services Tax (GST): The introduction of GST streamlined indirect taxation and automated tax compliances, easing the burden for businesses.
  • Reductions in corporate taxes along with simplified construction permits and the abolition of archaic laws were implemented to improve the ease of doing business.
• FDI policy: Nearly all sectors allow for 100% FDI, except for certain prohibited sectors.
  • For example the defence industry allows 74% FDI under the automatic route and 100% under the government route.
  • Initiatives like Make in India and Digital India, improved infrastructure and ease of doing business, supported by various incentives, have stimulated domestic manufacturing and attracted foreign investments.
  • Make in India Mittelstand (MIIM) , a collaboration between India and Germany, focuses on driving innovation and enhancing economic cooperation by encouraging small and medium-sized German companies to invest and manufacture in India.
  • Japan-India Make-in-India Special Finance Facility: The fund aims to promote direct investment of Japanese companies and trade from Japan to India, including the development of necessary infrastructure.
  • Production Linked Incentive (PLI) Scheme: The PLI scheme has prompted major smartphone companies like Foxconn, Wistron and Pegatron to shift suppliers to India, resulting in the manufacture of top-end phones in the country.

Way Ahead

• India approved the construction of three semiconductor plants with investments exceeding $15 billion.
• This initiative aligns with India’s goal to bolster its semiconductor ecosystem and create numerous advanced technology jobs.
• The Mega Investment Textiles Parks (MITRA) scheme to build world-class infrastructure will enable global industry champions to be created, benefiting from economies of scale and agglomeration.
• The Ministry of Heavy Industries & Public Enterprises initiative of SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs,  is expected to increase competitiveness of the manufacturing sector in the capital goods market.

General Studies Paper -3

Context: India has witnessed an 83% increase in the national fish production since 2013-14, which stands at a record 175 lakh tons in 2022-23.

Fisheries Sector of India

• India is the second-largest fish and aquaculture producer globally.
• 75% of the production is from inland fisheries.
• Andhra Pradesh is the largest fish producer in the country followed by West Bengal and Gujarat.
• Strengthening last-mile fisheries and aquaculture extension services is of paramount importance.
• Such extension should provide request-based services to fishers/fish farmers on the life cycle of improved species cultured, water quality, disease, and available rearing technologies.

Challenges of the Fisheries Sector in India

• Overfishing: Overexploitation of fish stocks due to excessive fishing is a significant challenge.
  • Illegal, Unreported, and Unregulated (IUU) Fishing: IUU fishing undermines efforts to manage and conserve fish stocks.
  • It includes activities such as fishing without proper authorization, disregarding catch limits, and using banned fishing gear.
• Poor Fisheries Management: Limited enforcement of regulations, lack of comprehensive data on fish stocks, and inadequate monitoring and control measures exacerbate the problem of overfishing and IUU fishing.
• Lack of Infrastructure and Technology: Inadequate infrastructure and outdated fishing technology hinder the efficiency and productivity of the fisheries sector.
• Pollution and Habitat Destruction: Pollution from industrial activities, coastal development, and agricultural runoff poses a threat to marine and freshwater habitats.
• Climate Change: Climate change is altering oceanic and freshwater environments, affecting fish distribution, migration patterns, and reproductive cycles.
• Socio-economic Issues: Poverty, lack of alternative livelihood options, and unequal distribution of resources contribute to the vulnerability of fishing communities.

Government Initiatives for the Growth of the Sector

• National Fisheries Development Board (NFDB): Established in 2006, NFDB serves as the apex body for the planning and promotion of fisheries development in India.
• Blue Revolution: Launched in 2015, the Blue Revolution aims to promote sustainable development and management of the fisheries sector.
• Sagarmala Programme: The Sagarmala Programme, launched in 2015, aims to promote port-led development and unlock the potential of India’s maritime sector.
  • It includes initiatives to develop fishing harbors, cold chain infrastructure, and fish processing facilities to support the growth of the fisheries sector.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): Launched in 2020, this scheme aims to increase fish production, boost aquaculture, and improve infrastructure.
  • In order to address the infrastructure requirement for fisheries sector, the union Government during 2018-19 created the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total funds size of Rs 7522.48 crore.
  • In the earlier phase of implementation of FIDF during the period from 2018-19 to 2022-23, a total 121 fisheries infrastructure projects have been approved for creation of various fisheries infrastructures.
• National Fisheries Policy: The Government of India formulated the National Fisheries Policy in 2020 to provide a comprehensive framework for the sustainable development of the fisheries sector.
  • The policy focuses on promoting responsible fisheries management, conserving aquatic biodiversity, enhancing fish production, and improving the socio-economic status of fishers and fish farmers.
• Fish Farmers Development Agencies (FFDAs): The Government has established FFDAs at the district level to provide technical guidance, training, and extension services to fish farmers.
  • These agencies play a crucial role in disseminating knowledge about modern aquaculture practices, facilitating access to credit and inputs, and promoting entrepreneurship in the fisheries sector.
• Coastal Aquaculture Authority (CAA): The CAA regulates and promotes coastal aquaculture activities to ensure sustainable development and environmental conservation.
  • It formulates guidelines for shrimp farming, regulates the use of coastal land for aquaculture purposes, and monitors compliance with environmental norms to prevent adverse impacts on coastal ecosystems.

Way Ahead

• The fisheries sector in India holds significant potential for growth and development, given the country’s extensive coastline, numerous rivers, and inland water bodies.
• Measures that can further help the sector:
• Strengthening monitoring and enforcement mechanisms to combat illegal, unreported, and unregulated (IUU) fishing activities.
• Providing financial support and incentives for adopting sustainable practices and modern technologies in fisheries.
• Ensuring the protection and restoration of aquatic habitats such as mangroves, coral reefs, and wetlands.
• Strengthening supply chain infrastructure and establishing better market linkages to ensure fair prices for fishers and access to domestic and international markets.

General Studies Paper -1

Context: Prime Minister Narendra Modi laid the foundation stone of the interstate Ken-Betwa river linking project.

Ken-Betwa River Linking Project

• In 2021, a memorandum of agreement was signed among the Ministry of Jal Shakti and the governments of Madhya Pradesh and Uttar Pradesh to implement the Ken-Betwa Link Project.
• Project:
  • Transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna.
  • The Ken-Betwa Link Canal will be 221 km in length, including a 2-km tunnel.
  • It has two phases. Phase-I will involve building the Daudhan Dam complex and its subsidiary units.
  • Phase-II will involve three components — Lower Orr Dam, Bina Complex Project and Kotha Barrage.
  • It is the project under the National Perspective Plan for interlinking rivers

Regions to be Benefited:

• The project lies in Bundelkhand, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.
• The project will be of immense benefit to the water-starved region.
• Completion: It is proposed to be implemented in eight years.

Significance of River Linking Projects

• Reduction of Water Scarcity: It helps transfer surplus water from water-rich regions to water-deficient areas, addressing water scarcity issues.
• Improved Water Availability for Agriculture: Increased water availability in dry regions to enhance agricultural productivity.
• Mitigation of Floods: Interlinking rivers help distribute excess water during periods of heavy rainfall, reducing the risk of floods in specific regions.
• Increased Hydropower Potential: The construction of reservoirs and canals for interlinking projects create opportunities for hydropower generation.
• Job Creation: The construction and maintenance of interlinking infrastructure create job opportunities, contributing to economic development.
• Conflict Resolution: River interlinking projects potentially reduce inter-state disputes over water resources by providing a more equitable distribution of water.

Concerns with the River Linking Projects

• Ecosystem Disruption: Altering natural river courses and diverting water can disrupt ecosystems, leading to habitat loss, changes in biodiversity, and potential extinction of species.
• Displacement of Communities: The construction of dams, reservoirs, and canals for river interlinking result in the displacement of communities, leading to social and economic hardships for affected populations.
• Inter-State Disputes: River interlinking projects often involve multiple states, and disagreements arise over water sharing, leading to inter-state disputes.
• Financial Viability: The construction of large-scale infrastructure for river interlinking projects can be economically challenging, with costs often exceeding initial estimates.
• Seismic Risks: Areas prone to earthquakes face increased risks due to the construction of large dams and other infrastructure.
• Maintenance Issues: Neglecting maintenance can lead to system failures and adverse consequences.
• Community Resistance: Local communities and environmental activists often oppose river interlinking projects due to concerns about their impact on the environment, livelihoods, and cultural heritage.

Conclusion

• Addressing the concerns requires comprehensive planning, environmental impact assessments, community engagement, and transparent decision-making processes.
• Sustainable water management practices, incorporating modern technologies and adaptive strategies, are essential to mitigate the potential negative consequences of river interlinking projects.