General Studies Paper -3 

Context: Cereal Grains have overtaken sugarcane as the primary feedstock for the production of ethanol used in blending with petrol.

About

• In the current supply year 2023- 2024, sugar mills and distilleries supplied 401 crore liters of ethanol to oil marketing companies.
• Of that, 211 crore liters or 52.7% was ethanol produced using maize and damaged foodgrains (mainly broken/ old rice not fit for human consumption), while sugarcane-based feedstocks (molasses and whole juice/ syrup) accounted for the remaining 190 crore liters.
• This is the first time that the contribution of grains to India’s ethanol production has surpassed 50%.

What is Ethanol?

• Ethanol is 99.9% pure alcohol that can be blended with petrol.
• Alcohol production involves fermentation of sugar using yeast. In cane juice or molasses, sugar is present in the form of sucrose that is broken down into glucose and fructose.
• Also grains contain starch, a carbohydrate that has to first be extracted and converted into sucrose and simpler sugars, before their further fermentation, distillation and dehydration to ethanol.

Ethanol blending

• The ‘National Policy on Biofuels’ notified by the government in 2018 envisaged an indicative target of 20% ethanol blending in petrol by 2030.
• In 2014 only 1.5 per cent ethanol was blended in petrol in India.
• Given the encouraging performance and various interventions made by the government since 2014, the 20% target was advanced to 2025-26.

Why is maize being promoted to produce ethanol ?

• Till 2017-18, ethanol was being produced only from molasses, the dense dark brown liquid byproduct containing sucrose that mills cannot economically recover and crystallize into sugar.
• However Sugarcane is a water-guzzling crop. A NITI Aayog report says that just one liter of ethanol produced from sugarcane consumes at least 2,860 liters of water.
• India will require 1320 million tons of sugarcane, 19 million hectares of additional land and 348 billion cubic meters of extra water to produce enough ethanol to meet the 20% ethanol blending target of 2025.
• Further the Food Corporation of India’s (FCI) has restricted the use of rice on concerns over cereal inflation and hence maize has emerged as the top ethanol feedstock.

General Studies Paper -3 

Context: Environmental concerns related to artificial intelligence (AI) are increasingly gaining attention as we witness the rapid integration of AI technologies into various aspects of our lives.

About

• Artificial Intelligence (AI), which is expected to enable transformative changes across several domains, including attempts to find solutions to climate change, has a very heavy emissions footprint, the scale of which is becoming evident only now.
• Recently, Google, in its annual environment report released, reported a 13% increase in its emissions footprint in 2023 compared with the previous year. The rise was attributed mainly to the increased electricity consumption in its data centres and supply chains.
• Google said its data centres consumed 17% more electricity in 2023, and added that this trend was expected to continue in the coming years because of greater deployment and usage of its AI tools.

Reasons For Heavy Emissions Footprint of AI

• Energy Consumption: AI models require substantial computational power for training and inference. As machine learning algorithms become more advanced, their hunger for electricity grows.
  • For instance, a simple AI query can consume between 10 and 33 times more energy than a regular Google search. Image-based AI searches may use even more energy. It translates to higher electricity consumption in data centres.
• Data Processing and Heat Generation: AI models sift through vast amounts of data during processing, which demands more electrical signals.
  • Additionally, the increased workload generates heat, necessitating powerful air-conditioning or cooling systems in data centres.
• Increased Demand of Water: There is an increased demand on water resources as well, required for cooling of data centres. There is inadequate data on water consumption of data centres but the centre that serves OpenAI’s GPT-4 model in Iowa (US) is reported to have consumed 6% of the district’s water supply in July 2022.
• Global Electricity Demand: Data centres currently account for 1% to 1.3% of global electricity demand. Projections suggest this could double (reaching 1.5% to 3%) by 2026, according to the International Energy Agency (IEA).
  • In comparison, despite the growing number of electric vehicles, their share of global electricity consumption remains around 0.5%.
• Country-Level Impact: In some regions, data centres’ electricity consumption as a share of national demand has already crossed double digits.
  • For example, in Ireland, where tax incentives attract data centres, this share has reached 18%.

Addressing the Challenge

• Efficient Algorithms: Developing more energy-efficient AI algorithms can reduce computational requirements.
• Monitoring and Optimization: AI can be deployed to monitor emissions in existing processes and optimise them to eliminate wastage or inefficiencies. For instance, AI-driven predictive maintenance can reduce energy consumption in industrial settings.
• Green AI Research: Researchers are exploring ways to make AI greener, such as using renewable energy sources for data centres or designing AI models with lower energy footprints.
• Ethical AI: As we advance AI, we must prioritise ethical considerations, including environmental impact.
  • UNESCO’s Recommendation on the Ethics of Artificial Intelligence aims to shift the balance of power between people, businesses, and governments developing AI.

AI’s Role in Climate Action

• Predictive Capabilities: AI can enhance predictions related to climate events. For instance, Google’s flood forecasting initiative uses AI and geospatial analysis to provide real-time information on riverine floods, helping communities prepare and respond.
• Efficiency Improvements: AI can optimise energy usage. Google Maps, powered by AI, suggests fuel-efficient routes, potentially preventing millions of metric tons of CO2 emissions.
• Smart Grids: AI supports the growth of smart grids by handling massive data generated by smart metres, grid monitoring devices, and renewable energy sources. It aids in balancing supply and demand, crucial for integrating renewables effectively.
• Large-scale Deployment of AI: Other estimates suggest that the large-scale deployment of AI could help in significant reductions of emissions globally. A recent study found that application of AI to corporate and industrial practices could result in a 5-10% reduction in global emissions by 2030, while generating a value worth $1.3 trillion to $2.6 trillion through additional revenues or cost savings.

Way Forward: Balancing Innovation and Sustainability

• As we embrace AI’s potential, we must strike a balance between innovation and environmental responsibility.
• Responsible Deployment: Organisations should use AI to monitor and predict emissions, optimise existing processes, and eliminate inefficiencies. Responsible deployment can reduce the overall environmental impact.
• Energy-Efficient Algorithms: Researchers and practitioners should focus on developing energy-efficient AI algorithms. Techniques like model quantization and pruning can help reduce computational requirements.
• Collaboration: Governments, industry, and research institutions must collaborate to create guidelines and policies that promote sustainable AI development.
  • In India, where the Ministry of Electronics and Information Technology is working on a framework for responsible AI, finding this balance is crucial. The huge environmental toll of AI and data centres will become evident soon, and proactive measures are essential.

Conclusion

• While AI holds immense promise, we must tread carefully to ensure its benefits do not come at the cost of our planet. Balancing technological progress with environmental responsibility is crucial for a sustainable future.

General Studies Paper -3 

Context: Recently, the Department of Space received an 18% hike over its expenses in 2023-24 in the Union Budget (2024-25) and the bulk of the hike goes towards the development of space technologies.

India’s Space Economy

• India’s space endeavors have come a long way since the launch of Aryabhata, its first satellite, back in 1975.
• Over the years, the ISRO has achieved remarkable milestones, from Chandrayaan to Mangalyaan, and has significantly contributed to both scientific research and practical applications.

Current Valuation and Global Share

• As of now, India’s space economy is valued at approximately ₹6,700 crore (around $8.4 billion), accounting for a modest 2% share in the global space economy.
• However, the Indian National Space Promotion and Authorization Centre (IN-SPACe) projects that by 2033, India’s space economy could reach ₹35,200 crore (approximately $44 billion), capturing about 8% of the global market share and aiming for a 15% share by 2047.

Budgetary Allocation

• In the recently announced Union Budget for 2024-25, India’s space sector received a significant boost. The Central government allocated ₹13,042.75 crore to support space-related initiatives.
• Now, with a fresh infusion of ₹1,000 crore (approximately $134 million), as a Venture Capital Fund (VCF), India’s space aspirations are set to soar even higher.
• It aims to achieve a fivefold increase in India’s space economy over the next decade, along with the Fostering Innovation, Private Sector Participation, and Global Competitiveness.
• India has been actively liberalising and privatising its space sector.

Decadal Vision and Strategy

• IN-SPACe, the single-window, autonomous agency under the Department of Space, recently unveiled its decadal vision and strategy. It focuses on several key areas:
• Demand Generation: Creating a robust demand for space-related services and applications.
• Local Manufacturing Capabilities: Encouraging indigenous production of satellites, launch vehicles, and other space hardware.
  • ISRO is actively opening its doors to private sector participation, fostering a resurgent Aatmnirbhar Bharat (self-reliant India).
• Infrastructure Development: Building necessary infrastructure for space activities.
• Regulatory Framework: Providing clear guidelines to facilitate participation by non-governmental entities (NGEs) in the space sector.

Key Segments of the Space Ecosystem

• Space-for-Earth: Applications like weather forecasting, communication, and remote sensing fall under this category.
• Access-to-Space: Enabling satellite launches and transportation.
• Space-for-Space: Focusing on scientific research, exploration, and interplanetary missions.
• Strategic and Enabling Capabilities: IN-SPACe aims to achieve its vision through ten strategic capabilities like Earth Observation (EO) platforms, Communication platforms, Navigation platforms, Research & Development ecosystem, Talent pool creation, Access to finance, International collaboration, and Policy and regulation.

Potential of Space Sector

• Export Potential and Investment: Currently, India’s export market share in space-related services stands at ₹2,400 crore (about $0.3 billion). The goal is to boost this to ₹88,000 crore ($11 billion).
  • An ambitious investment of ₹17,600 crore ($22 billion) is envisioned over the next decade.
• Rise of Space Tourism: According to media reports, in 2023, the space tourism market was valued at $848.28 million.
• It is expected to grow to $27,861.99 million by 2032.
• Major Players in Space Tourism: There are now six major space companies that are arranging or planning to arrange touristic flights to space: Virgin Galactic, Blue Origin, SpaceX, Boeing, Axiom Space, and Space Perspective.

Challenges in India’s Space Sector

• Competition and Global Market Share: To achieve this ambitious goal of 8% of the global market share, Indian space companies must compete effectively on the international stage. They need to offer competitive services, cutting-edge technology, and reliable launch capabilities.
• Private Sector Participation: While the private sector has shown interest, there’s a need for more substantial investment and commitment.
  • Companies are waiting to see sustained government support and clear policies that foster long-term collaboration.
• Technology Development and Innovation: Developing cutting-edge technologies, such as reusable launch vehicles, miniaturised satellites, and advanced propulsion systems, requires substantial investment and research. Balancing innovation with cost-effectiveness is crucial.
• Regulatory Framework and Licensing: Navigating licensing processes, export controls, and compliance can be complex. Clarity and transparency in regulations are critical for private players.
• Infrastructure and Facilities: Developing and maintaining such infrastructure requires significant capital. Collaborations between ISRO and private entities can help bridge this gap.
• Talent and Skill Development: Attracting and retaining talent is crucial. Efforts to enhance educational programs, skill development, and industry-academia partnerships are necessary.
• Risk Management and Insurance: The private sector needs robust risk assessment mechanisms and insurance options to mitigate financial losses in case of mission failures.
• Collaboration with ISRO: Finding the right balance—where private companies contribute while benefiting from ISRO’s knowledge—is key. Ensuring fair competition and avoiding dependency is a delicate task.

Major Reforms In Space Sector of India

• Indian Space Policy 2023: It laid down roles and responsibilities of organisations such as ISRO, New Space India Limited (NSIL) and private sector entities.
  • It aims to enhance the participation of research, academia, startups and industry.
• Strategic Proposals by SIA: The Space Industry Association – India (SIA-India) in its Pre-Budget Memorandum for the FY 2024-25 has proposed a substantial increase in India’s space budget.
  • It aims to support India’s expanding space program, foster private sector involvement, drive technological advancements, and position the nation as a key player in the dynamic global space ecosystem.
• Tax Incentives: It needs to take more initiatives for tax exemptions/tax holidays/accelerated depreciation for companies directly or indirectly engaged in space sector activities.

FDI in Space Sector

• The Finance Ministry came with new rules, known as the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024, that provide a liberalised entry route for FDI in satellites, launch vehicles, spaceports, and manufacturing space-related components and systems.
• According to it, 100% percent FDI has been allowed for the space sector category of manufacturing and operation of satellites, satellite data products, and ground segment and user segment.
• Out of this, up to 74% would be through the automatic route and government nod would be required for investment beyond that.
  • Under the earlier policy, any foreign investment in manufacturing and operating satellites was allowed only with government approval.

Space Related Start-Ups in India

• The number of Space Start-Ups have gone up, from just 1 in 2014 to 189 in 2023 as per DPIIT Start-Up India Portal.
  • The investment in Indian Space Start-Ups has increased to $ 124.7 Million in 2023.
• Private Sector Participation: The Indian government has taken steps to encourage private sector involvement in space activities. The establishment of the IN-SPACe in 2020 was a significant milestone. IN-SPACe is responsible for promoting, authorising, and supervising space activities by non-governmental entities (NGEs).

Conclusion

• India’s journey into space has been nothing short of remarkable. From launching satellites for communication, navigation, and scientific research to sending missions to the Moon and Mars, the ISRO has consistently pushed boundaries.
• India’s space economy is poised for significant growth, driven by collaboration, innovation, and a forward-looking vision. As private players increasingly participate, we can expect exciting developments in satellite technology, space tourism, and beyond.

General Studies Paper -1

Context: A high-level committee headed by the Union Home Minister approved several disaster mitigation and capacity building projects for various states that include combating urban flooding and checking glacial lake outburst floods.

About

• The committee approved nine proposals for funding from National Disaster Mitigation Fund (NDMF) and National Disaster Response Fund (NDRF).
• It include six projects in Telangana, Gujarat, Karnataka, West Bengal and Maharashtra for urban flood management.
  • Project for Glacial Lake Outburst Flood risk mitigation for the states of Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.
• The committee also considered a proposal to implement Yuva Aapda Mitra Scheme (YAMS) in all the 28 states.
  • It will be implemented in 315 most disaster-prone districts of the country for training of 1300 trained Aapda Mitra Volunteers as Master Trainers and 2.37 lakh volunteers exclusively from NCC, NSS, NYKS and BS&G (Bharat Scouts & Guides) in disaster preparedness and response.

Disaster Risk Reduction (DRR)

• It is aimed at preventing new and reducing existing disaster risk and managing residual risk, all of which contribute to strengthening resilience and therefore to the achievement of sustainable development.
• DRR strategies and policies define goals and objectives across different timescales and with concrete targets, indicators and time frames.
• Need of DRR: It is vital for safeguarding lives, reducing economic losses, promoting sustainable development, protecting the environment, enhancing community resilience, facilitating effective emergency response, addressing the needs of vulnerable populations, and supporting broader security

The Sendai Framework for Disaster Risk Reduction

• It is a global agreement adopted by UN member states to guide efforts in reducing disaster risk and building resilience to disasters.
• It was adopted at the Third World Conference on Disaster Risk Reduction in Sendai, Japan, in 2015.
• The framework represents a significant step forward from its predecessor, the Hyogo Framework for Action, focusing on a more comprehensive and inclusive approach to disaster risk management.
• The primary goal of the Sendai Framework is to substantially reduce disaster risk and losses in lives, livelihoods, and health by 2030.
• It recognizes that the State has the primary role to reduce disaster risk but that responsibility should be shared with other stakeholders including local government, the private sector and other stakeholders.

• Four Priority Actions:
  • Understanding Disaster Risk: Improving knowledge of disaster risk through comprehensive risk assessments, data collection, and research.
  • Strengthening Disaster Risk Governance: Developing effective and inclusive governance structures that integrate disaster risk reduction into policies and practices.
  • Investing in Disaster Risk Reduction for Resilience: Increasing investments in DRR measures and incorporating risk reduction into development planning, infrastructure, and community resilience efforts.
  • Enhancing Disaster Preparedness for Effective Response: Improving preparedness and response mechanisms to ensure a swift and efficient response to disasters.

Framework for DRR in India

• National Disaster Management Act, 2005: This act established the National Disaster Management Authority (NDMA) and provided a legal framework for disaster management in India.
  • It created a three-tier system of disaster management involving the National, State, and District Authorities, each with specific roles and responsibilities.
  • The NDMA is headed by the Prime Minister, emphasizing the importance of disaster management at the highest level of government.
• National Disaster Management Plan (NDMP) 2016: It outlines the strategic approach to disaster management in India, focusing on a holistic and integrated approach.
• National Disaster Response Force (NDRF): Established under the National Disaster Management Act, NDRF is a specialized force trained to respond to natural and man-made disasters.
• National Policy on Disaster Management (2009): This policy provides a comprehensive framework for disaster management, emphasizing a proactive approach to risk reduction, preparedness, and mitigation.
• National Disaster Relief Fund (NDRF): This fund supports disaster relief operations and recovery efforts.
• State Disaster Response Fund (SDRF): Each state has its own fund for disaster response and management at the state level.

General Studies Paper -3 

Context: The Finance Ministry has allocated Rs 365.64 crore for the National Mission on Natural Farming for 2024-25.

What is Natural Farming?

• This farming approach was introduced by Masanobu Fukuoka, a Japanese farmer and philosopher, in his 1975 book The One-Straw Revolution.
• Natural Farming is a sustainable agricultural practice that emphasizes chemical-free farming, relying on indigenous cows and locally available resources.
• It avoids chemical fertilizers and pesticides, promoting traditional methods that free farmers from the need for external inputs. This approach focuses on:
• Biomass Mulching: Covering soil with organic matter to retain moisture, improve soil health, and suppress weeds.
• Desi Cow Dung-Urine Formulations: Using formulations made from the dung and urine of indigenous cows to fertilize the soil and manage pests.
• Natural Nutrient Cycling: Enhancing the natural processes that recycle nutrients within the soil.

National Mission on Natural Farming

• The Government has formulated National Mission on Natural Farming (NMNF) as a separate and independent scheme by up-scaling the Bharatiya Prakritik Krishi Paddhati (BPKP) from 2023-24.
• To motivate farmers to adopt natural farming and to enhance the reach of natural farming, 1 crore farmers across the country will be initiated into natural farming supported by certification and branding.
• Implementation will be through scientific institutions and willing gram panchayats. 10,000 need-based bio-input resource centers will be established.

Challenges to Natural Farming

• Yields drop: India’s first organic state, Sikkim, has started seeing decline in its yields after a few years.
• Conviction among Policy Makers: As of now, policy makers fear for the food security of the nation and are non-committal on any major changes in the agriculture sector.
• Resistance by the Chemical inputs-based industry: The chemical-based farming has a strong backing in the form of multi-million-dollar agro-chemical industry, which has fought tooth and nail to sustain the application of chemicals in agriculture.
• Knowledge and Training: Farmers need specialized knowledge and training to implement natural farming techniques effectively. This includes understanding soil health, crop rotation, companion planting, and natural pest management strategies.
• Economic Viability: The economic viability of natural farming can be uncertain. Higher labor costs, lower yields, and the potential for crop failures impacts profitability.

Way Ahead

• Now is the time when India moves forward on the path of natural farming and takes full advantage of the global opportunities that are emerging.

Natural farming will reduce dependency on purchased inputs and will help to ease smallholder farmers from credit burden.

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.