General Studies Paper-2

Context

• With uncertainty gripping the ambitious India-Middle East EU Economic Corridor (IMEC) project due to the deepening of the West Asia crisis, India is examining the possibility of beginning work on the eastern leg of the corridor.
• Background: The IMEC, a proposed 4,800 km long route was announced in 2023 on the sidelines of the G20 Summit.
  • This followed a meeting between the leaders of India, the US, the United Arab Emirates, Saudi Arabia, Italy, France, Germany, and the European Commission.
• Members: India, European Union, France, Germany, Italy, Saudi Arabia, UAE and US announced the India-Middle East-Europe Economic Corridor (IMEC).
• Aim: Integration of Asia, Europe and the Middle East.
• The IMEC will comprise of two separate corridors:
  • The east corridor connecting India to the West Asia/Middle East and
  • The northern corridor connecting West Asia/Middle East to Europe.

Ports Which are Part of IMEC

• India: Ports in Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai).
• Europe: Piraeus in Greece, Messina in Southern Italy, and Marseille in France.
• Middle East: Ports include Fujairah, Jebel Ali, and Abu Dhabi in the UAE, as well as Dammam and Ras Al Khair ports in Saudi Arabia.
• Israel: Haifa port.
• Railway Line: The railway line will link Fujairah port in the UAE to Haifa port in Israel, passing through Saudi Arabia (Ghuwaifat and Haradh) and Jordan.

Significance

• Economic Development: By linking Asia, West Asia, the Middle East and Europe through enhanced connectivity and economic integration, the corridor aims to give a boost to economic development in the regions.
• Connectivity: The corridor will include a rail line, which, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network.
  • The rail line will supplement the existing multi-modal transport routes enhancing trans-shipment of goods and services from South East Asia through India to West Asia/Middle East and Europe.
• Eco-friendly Infrastructure: It places emphasis on developing environmentally friendly infrastructure.
• Transformative Integration: It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs and lower greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East (West Asia).

Concerns

• Gaza War: Long-term trend towards greater trade and strategic links between Israel and Arab nations that was championed by the Abraham Accords will suffer a blow due to the Gaza war.
  • Connecting Al Haditha in Saudi to Haifa in Israel is at the core of IMEC but it is going to be challenging now.
• The security challenges in the region have made other partners reluctant to invest in the project.
  • The instability in the Middle East has given a fatal blow to the project which aimed to radically quicken trade, reduce port costs and aid India’s National Logistics Policy.
  • The delay in the project could negatively impact the aspirations of India to deepen ties with Arabian Peninsula and Europe.

Way Forward

• The geopolitical concerns need to be managed by striking a delicate balance in accommodating the geopolitical interests of the participating nations and addressing potential political sensitivities.
• There is also a need to maintain the required security apparatus as the project passes through certain unstable regions of the world.

General Studies Paper-3

Context– The Household Consumption Expenditure Survey for 2022-23 (HCES) by the National Sample Survey Office (NSSO) led to estimations of poverty and inequality trends by researchers.

 What are the trends in poverty and inequality according to some studies?

1. Based on the Rangarajan Committee’s poverty lines, the estimated poverty ratio declined from 29.5% in 2011-12 to 10% in 2022-23 (1.77% points per year).
2. Based on the Tendulkar Committee’s poverty lines, the poverty ratio declined from 21.9% in 2011-12 to 3% in 2022-23 (1.72% points per year).
3. Between 2011-12 and 2022-23, the Gini coefficient declined from 0.278 to 0.269 for rural areas and from 0.358 to 0.318 for urban areas, indicating a decrease in inequality.
4. This means poverty declined significantly between 2011-12 and 2022-23, though the rate of decline was lower compared to the 2004-05 to 2011-12 period. Inequality declined between 2011-12 and 2022-23 particularly in urban areas. It is to be noted that all these estimates depend on where the poverty line is drawn.

What changes have been made regarding the data collection methodology?

1. The NSSO has changed the reference or recall period of data collection over time, leading to three estimates of consumption: Uniform Reference Period (URP), Mixed Reference Period (MRP), and Modified Mixed Reference Period (MMRP).
2. The Tendulkar Committee used MRP for 1993-94 and 2004-05, while the Rangarajan Committee used MMRP for 2009-10 and 2011-12, making the 2022-23 estimates (based on MMRP) not strictly comparable with earlier years.
3. Changes in methodology, such as coverage of more items and multiple visits, may provide better estimates but raise comparability issues.

What are the issues regarding the data collection methodology?

• The NSSO altered the reference or recall period of data collection over time to enhance the accuracy of consumption reporting. Changes in methodology, such as coverage of more items and multiple visits, may provide better estimates but raise comparability issues.

What are the measurement issues discussed regarding poverty lines?

• There has been a discussion on the appropriateness of calorie norm-based poverty lines.
• The Tendulkar Committee adopted the official urban poverty line of 2004-05 based on the Lakdawala methodology, which indirectly used calorie norms.
• The Rangarajan Committee estimated a new poverty basket, including a food component for adequate nourishment, essential non-food items, and behaviorally determined non-food expenditure.

How does public expenditure affect poverty measurements?

• The poverty line is based on private consumption expenditure, but public expenditure also impacts household well-being. The Household Consumption Expenditure Survey 2022-23 tried to estimate the value of some things the government provides for free or at low prices. However, this survey didn’t fully account for the government’s help. Thus, there is a need to capture these values better as public expenditure on these items is substantial.

Conclusion– Overall, there has been a decline in poverty and a slight reduction in consumption expenditure inequality. However, it’s noted that there isn’t a single method for measuring poverty, and the number of poor varies depending on the poverty cut-off used.

General Studies Paper-2

Context

• Agriculture is still a crucial source of livelihood for a significant portion of the Indian population.

About the Export Policy

• The agricultural export policy was announced in 2018 to transform the ecosystem of India’s agricultural exports.
• This has led to agricultural exports reaching up to Rs. 4 lakh crore.
• Objectives: To diversify our export basket, destinations and boost high value- and value-added agricultural exports, including focus on perishables.
  • To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
  • To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues.
  • To strive to double India’s share in world agri exports by integrating with global value chains.
  • Enable farmers to benefit from export opportunities in overseas markets.

Agriculture’s Economic Impact

• India is one of the largest agricultural producers in the world, and its agricultural exports are an important part of its economy.
• The agricultural sector is estimated to constitute 18 percent of India’s GVA in FY24.
• The total food grains production for FY23 was 329.7 million tonnes, marking a rise of 14.1 million tonnes compared to the previous year.
  • Rice, wheat, pulses, Nutri/coarse cereals, and oilseeds witnessed record increases in production.
• India’s global dominance extends across agricultural commodities, making it the largest producer of milk, pulses, and spices worldwide.
• Additionally, India ranks second-largest producer of fruits, vegetables, tea, farmed fish, sugarcane, wheat, rice, cotton, and sugar.
• The horticulture production was 355.25 million tonnes which is the highest ever for Indian Horticulture (as per third advance estimates).

Concerns

• Besides global price dynamics, export restrictions and outright bans on sensitive agricultural commodities like wheat, rice, sugar, and onions lately have significantly impacted agri-exports, driven primarily by the concerns of domestic food inflation.
• The ambiguities in the policy by citing empirical data on trade policy instruments used for export restrictions.
• Food losses and waste, and most importantly dwindling farmers income.
• There are also concerns related to depleting groundwater, especially in the Punjab-Haryana belt.
• Free power and highly subsidised fertilisers are leading to an ecological disaster.
• Sometimes, Government policy has a consumer bias, which implicitly discriminates against the farmer.

Benefits of New Agriculture Export Policy

• Export Diversification: A farmer-friendly policy can encourage the export of a wider variety of agricultural products, reducing dependence on a few staple crops and promoting diversification within the agriculture sector.
• Improved Quality Standards: To meet international export requirements, farmers might be incentivized to adopt better agricultural practices and improve the quality of their produce. This can benefit domestic consumers as well.
• Increased Investment: A supportive policy environment can attract investments in agricultural infrastructure, processing facilities, and value addition, leading to overall growth in the agriculture sector.
• Job Creation: Growth in agri-exports can create new job opportunities in related sectors like logistics, packaging, and quality control.
• Improved Market Access: The policy can help farmers connect with international buyers, opening up new markets and reducing dependence on local markets that might be saturated or offer lower prices.
• Enhanced Risk Management: By diversifying export destinations, farmers can spread their risk and become less vulnerable to price fluctuations in the domestic market.
• Increased Foreign Exchange Earnings: Higher agri-exports can contribute to a positive trade balance and generate foreign exchange reserves, strengthening the Indian rupee.
• Economic Growth: A thriving agriculture sector with a strong export component can contribute to overall economic growth and development.

Steps of Government

• The policy initiatives, such as Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), and Pradhan Mantri Fasal Bima Yojana (PMFBY), have been instrumental in offering financial and income assistance to farmers.
• Every year, under the PM-KISAN Samman Yojana, direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers.
• The government has actively promoted digital inclusion and mechanization to foster productivity.
  • The launch of the digital platform e-NAM (National Agriculture Market) in 2016 has facilitated the integration of Agriculture Produce Marketing Committees (APMC) mandis and has provided multi-faceted benefits to farmers, farmer-producer organizations (FPOs), buyers, and traders.
• The budget set aside for agriculture increased 5 times from ₹37 lakh crore during 2007-14 to ₹7.27 lakh crore during 2014-25.
• Pradhan Mantri Fasal Bima Yojana (PMFBY) has become the largest crop insurance scheme in the world in terms of farmer enrolments as well as the third largest scheme in the world in terms of insurance premiums.
• Since the inception of the Agriculture Infrastructure Fund, Rs 35,262 Crores have been sanctioned for 48,352 projects
• A historic MSP increase was announced where, for the first time, the minimum support price of all 22 crops was set at a minimum 50% more than the cost.

Conclusion and Way Forward

• India is constantly improving its market share therefore policymakers must use agricultural exports to speed up economic development, generate employment, eliminate food losses and waste, and most importantly, increase dwindling farmers income.
• Policy consistency and continuity that expand market and production choices for farmers, which, at the same time, keep the larger environmental and ecological considerations and natural resources availability and demand in the country, will be useful in encouraging farmers to adopt new technologies and practices.
• There is a need for significant investments across agriculture, including research and development, seeds, irrigation, fertilisers and adopting resource-efficient farming practices like precision agriculture, fertigation etc.
  • These strategic investments can drive down per-unit costs, enhance global competitiveness, increase agricultural exports, improve farmers’ profitability, as well as protect the environment.

General Studies Paper-3

Context: The Smart Cities Mission (SCM), a flagship programme has taken a back seat in this year’s list of poll promises and achievements.

About

• Smart cities were defined by urban practitioners as new Silicon Valleys built with a strong integration of a network of airports, highways, and other types of communications, a so-called intellectual city with advanced ICT.
• It is an initiative of the Union Housing and Urban Affairs Ministry, launched in 2015.
• 100 cities have been selected to be developed as Smart Cities through a two-stage competition for five years.
• The Mission is operated as a Centrally Sponsored Scheme.
• Objective: To promote cities that provide core infrastructure, clean and sustainable environment and give a decent quality of life to their citizens through the application of ‘smart solutions’.
• The six fundamental principles on which the concept of Smart Cities is based are:

Key Features

• The SCM had two main aspects: area-based development consisting of three components — redevelopment (city renewal), retrofitting (city improvement), and green field projects (city extension); and pan-city solutions based on ICT.
• These further comprised some six categories that would include e-governance, waste management, water management, energy management, urban mobility, and skill development.
• Four pillars: Social Infrastructure, Physical Infrastructure, Institutional Infrastructure, Economic Infrastructure.
• Integrated Command and Control Centre: These ICCCs are designed to enable authorities to monitor the status of various amenities in real time.
  • The ICCC acts as a smart city and acts as a “nerve center” for operations management.
• Other steps taken under the SCM for digital infrastructure are;
  • Adaptive Traffic Control System (ATCS), Red Light Violation Detection (RLVD), and Automatic Number Plate Recognition System (ANPR),
  • Digital assets for solid waste and waste-water management and water distribution management,
  • CCTV surveillance systems, smart education and smart health systems.

Status of the SCM

• 8,033 projects sanctioned under the SCM have seen a fall in the total outlay from the expected ₹2 lakh crore, which is 16% less than the projected capital flow in 100 cities.
• The SCM grant funded 5,533 projects have been completed, while 921 projects are still ongoing.
• As many as 400 projects being undertaken by about 10 cities under the Mission are unlikely to meet the extended deadline of June 2024.
• The funding pattern shows that not more than 5% has come through the PPP route.

Challenges

• Diversity in Urban India: The selection of 100 cities on a competitive basis was flawed due to the diversity in existing urban realities.
  • The scheme was divorced from the ground realities of urban India — the urbanisation here is dynamic and not static like the West.
• Financial Constraints: Keeping the funds and finances flowing in for the smart cities mission is a challenge. Most Urban Local Bodies are not even financially self-sustainable.
  • According to McKinsey, to make Indian cities liveable, a capital expenditure of $1.2 trillion is required by 2030. In this context, ₹1,67,875 crore is less than $20 billion in nine years.
• Displacement: Urban India, according to the World Bank has more than 49% of the population living in slums.
  • There was displacement of people living in poorer localities. Street vendors, for example, were displaced and urban commons were disrupted.
• Infrastructure Development: Many Indian cities lack basic infrastructure, such as efficient public transportation, waste management systems, and reliable water and electricity supply.
  • Implementing smart solutions requires significant upgrades to existing infrastructure.

Way Ahead

• Data protection: A robust system is required to protect digital platforms from cyber attack and safeguarding sensitive public and private data adequately.
• Pan city projects: SCM should emphasize more on pan city projects to ensure comprehensive and holistic development.
• Strengthening ULBs: A plan should be made to strengthen ULBs’ capabilities in small cities.
• Public Private Partnerships: The government should analyse the reasons behind low private investments and take remedial steps towards the same.
• Completion of Projects: The Committee recommended that the ministry’s role should not be confined to transfer of share and asked them to remain watchful to ensure execution and completion of the projects by intervening to facilitate with inputs and expertise.

General Studies Paper-2

Context: India and Iran signed a 10-year contract for the operation of Chabahar Port.

About

• The long-term agreement was signed between Indian Ports Global Ltd. (IPGL) and Port and Maritime Organisation (PMO) of Iran, enabling operation of the Shahid-Beheshti terminal.
• The pact replaces one-year contracts that were being signed to keep the port operational until now.
• India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

Chabahar Port

• Iran’s Chabahar port is located on the Gulf of Oman and is the only oceanic port of the country.
• It is situated in the city of Chabahar in Sistan and Baluchestan Province.
• Chabahar has two ports; Shahid Kalantari and Shahid Beheshti.
  • The former is an old port with limited water front to accommodate feeder vessels.
  • The Shahid Beheshti Port is being developed in four phases. On completion of all 4 phases, port capacity will 82 million tons per year.
• The port gives access to the energy-rich Persian Gulf nations’ southern coast and bypasses Pakistan.
• Kandla port in Gujarat is the closest port at 550 nautical miles, while the distance between Chabahar and Mumbai is 786 nautical miles.

Significance of Chabahar Port for India

• Geopolitical Significance: It is strategically located at the crossroads of South Asia, Central Asia, and the Middle East. It provides India with direct sea access to Afghanistan and Central Asia, bypassing Pakistan.
  • The port also offers an alternative route from the Strait of Hormuz for cargo traffic between Central Asian countries and Afghanistan. This diversification strengthens India’s strategic position in the region.
• Gateway to INSTC: Chabahar port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor (INSTC) that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.
• Countering China: Chabahar port is beneficial to India in countering Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port.
  • Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
• Trade Benefit: With Chabahar port becoming functional, there will be a significant boost in the import of iron ore, sugar and rice to India.
  • The import cost of oil to India will also see a considerable decline.

Brief on India and Iran Relations

• Political Relations: India and Iran signed a friendship treaty in 1950. The two countries have in place several Bilateral Consultative Mechanisms at various levels including the Joint Committee Meeting (JCM), Foreign Office Consultations (FOC), Security Consultations at the level of National Security Advisers.
• India and Iran also have Joint Working Groups to facilitate cooperation in various important sectors.
• Economic Relations: India-Iran bilateral trade during the FY 2022-23 was $2.33 billion, registering a growth of 21.76%.
  • India and Iran have also been trying to diversify their channels of payment to increase bilateral trade.
• Energy Cooperation: India has consistently been among the top importers of Iranian oil, although this relationship has faced challenges due to international sanctions on Iran.
• Regional Stability: India and Iran share concerns and interests in the stability of the region, especially in the context of Afghanistan.
  • The two nations have collaborated on various initiatives to address common security challenges.

Areas of Concerns

• International Sanctions: Iran has faced international sanctions, particularly in relation to its nuclear program.
  • These sanctions have affected economic relations between India and Iran, especially in the energy sector.
  • India’s ability to import oil from Iran has been impacted, leading to uncertainties in their energy cooperation.
• Geopolitical Challenges: The geopolitical landscape in the Middle East and South Asia has been complex, and both countries need to navigate carefully to balance their regional interests.
• Security Concerns: The security situation in the region, including the volatile conditions in Afghanistan, has implications for both India and Iran.
• India has expressed concern as tensions rise in the region. It has maintained a diplomatic dialogue with Iran on issues of concern, such as attacks on India-linked ships by Yemen’s Houthi rebels, who are believed to have links to Iran.
• Chabahar Port Development: While the development of the Chabahar Port is a significant project, progress has been slower than anticipated.
• Impact of External Powers: Both India and Iran have relationships with external players that may not align with each other’s interests.
  • The influence of external powers in the region can complicate their bilateral dynamics and create challenges for mutual cooperation.
• Nuclear Deal Uncertainties: The uncertainties surrounding the Iran nuclear deal (JCPOA) and the potential for changes in the international approach toward Iran’s nuclear program can impact the diplomatic and economic relations between India and Iran.

Way Ahead

• Although India has followed a balancing act in the Middle East, the evolving geopolitical realignments could pose newer challenges for India to deepen its cooperation with Iran amid escalating tension between Iran and the West.
• However, both countries continue to explore opportunities for collaboration and economic partnership.
• India has major investment plans in Iran, largely centered around the Chabahar Port as it gives India a strategic advantage over both China and Pakistan.

General Studies Paper-3

Context: Indian Space Research Organisation (ISRO) successfully tested a liquid rocket engine made with the help of Additive Manufacturing Technology — commonly known as 3D printing.

About Rocket Engine

• The PS4 engine, designed for the fourth stage of the Polar Satellite Launch Vehicle (PSLV), was redesigned by ISRO for production using 3D printing.
  • The PS4 engine uses a bipropellant combination of nitrogen tetroxide as the oxidizer and monomethyl hydrazine as the fuel
• Laser Powder Bed Fusion technique used in the manufacturing process. Laser Powder Bed Fusion (LPBF) is a metal 3D printing technique where a laser selectively melts and fuses metal particles together, building up a 3D object layer by layer.
• The technology helped ISRO bring down the number of parts in the engine from 14 to a single piece.

What is 3D Printing?

About:

• The term 3D printing is typically used to refer to all types of additive manufacturing.
• It refers to the transformation of a digital CAD (Computer-Aided Design) file into a three-dimensional physical solid object or part.
• It typically does this by depositing material layer by layer in precise geometric shapes using a printhead, nozzle, or other printing technology.
  • It is an additive process, in which layers of a material like plastic, composites or bio-materials are built up to construct objects that range in shape, size, rigidity, and colour.

Process:

• The process of 3D printing a building involves the use of computer-aided design (CAD) software to create a digital blueprint.
  • This blueprint is then converted into a format the 3D printer can understand, typically a.STL or .OBJ file.

Application:

• It has widely been applied towards the agricultural, biomedical, automotive, and aerospace industries
• There are numerous applications of 3D printing technology for producing biomedical products such as drugs, artificial skin, bone cartilage, tissue, and organs, and in cancer research and education.
• It is used widely in the manufacturing industry and medical education field.
• It has been used to create complex walls, endodontic guides, sport shoes, engine parts for the aviation industry, and tumour reconstruction.

Benefits

• 3D printing technology, which has the potential to revolutionize the construction industry, offers unprecedented design freedom, reduces material waste, and significantly reduces construction time.
• It enables the creation of complex architectural forms that would be challenging to achieve with traditional methods.
• It allows for the customization and optimization of building components.
• The layer-by-layer approach of 3D printing allows precise control over material distribution and structural integrity, resulting in highly efficient and robust structures.

Challenges

• The slow adoption in India can be attributed to the lack of understanding about 3D printing.
• In the 3D printing industry, parts to build the printer are still very expensive.
• Lack of investment and fewer R&D centres for 3D printing are some of the additional factors that are holding back large scale adoption.

Future Outlook

• 3D printing technology has emerged in recent years as a flexible and powerful technique in advanced manufacturing.
• The future demand for 3D printing lies in its capability to perform different print functions and “print-it-all” structures.
  • These functions are progressively perceived as the driving force for researchers and practitioners.
• A better understanding of 3D printing technology and its applications among users will definitely help increase its adoption
• The successful hot testing of the 3D printed PS4 engine is a significant step in leveraging additive manufacturing technology for rocket engines in the future.
  • This paves the way for the induction of the additively manufactured PS4 engine into the regular PSLV program, ushering in a new era of advanced manufacturing techniques for India’s space endeavours

General Studies Paper-2

Context: Recently, it has been observed that the India-EFTA trade deal is a major step forward for India in its approach to bilateral trade agreements.

• It creates a template worth emulating in the ongoing negotiations with the U.K, the EU, and other countries.

India-EFTA Trade Deal

About:

• In March 2024, India signed a landmark free trade deal with the European Free Trade Association (EFTA), which represents Iceland, Liechtenstein, Norway and Switzerland.
  • The EFTA was set up in 1960 to promote closer economic cooperation and free trade in Europe.

Features:

• The agreement comprises of 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions.
• For the first time, India has allowed coverage of non-trade aspects in a trade agreement, including labour standards, social development, and environmental protection.
• A unique component in the agreement is the chapter on investment, where the EFTA bloc has made a binding commitment to invest US$100 billion in India over 15 years.
  • The investments, mostly from the private sector, will be aimed at manufacturing and industries such as chemicals, pharmaceuticals, machinery, food processing, infrastructure and transport.
  • The EFTA countries are legally obligated to make an honest effort to invest $100 billion and generate one million jobs in India.

Importance

• It is a modern and ambitious Trade Agreement and It marks a significant incremental step in the long-standing relationship between India and the EFTA states
• It will give impetus to “Make in India” and Atmanirbhar Bharat by encouraging domestic manufacturing in sectors such as Infrastructure and Connectivity, Manufacturing, Machinery, Pharmaceuticals, Chemicals, Food Processing, Transport and Logistics, Banking and Financial Services and Insurance.
• It would accelerate the creation of a large number of direct jobs for India’s young aspirational workforce in the next 15 years in India, including better facilities for vocational and technical training.
• It also facilitates technology collaboration and access to world leading technologies in precision engineering, health sciences, renewable energy, Innovation and R&D.
• The FTA will provide a window to Indian exporters to access large European and global markets.”
• The India-EFTA FTA, which contains an investment chapter within the trade agreement, assumes pivotal significance.

Issues

• The biggest hurdle for the FTA to come into force is pending ratifications by the four EFTA countries, especially Switzerland.
• Despite the deal being touted as a win-win for all countries involved, for India, the benefits are limited in terms of trade in goods, given pre-existing low tariff rates in the EFTA bloc and most imports already receiving tariff-free treatment.
• The deal would more positively impact EFTA’s exports to India rather than Indian exports, given the reduction of Indian tariffs and enhanced market access.
• The agricultural products remain outside the pact’s scope, besides the exclusion of several sensitive Indian products such as dairy, coal, and soya.
• India is likely to keep facing difficulties in exporting farm produce to Switzerland due to a complex web of tariffs, quality standards, and approval requirement

Suggestions and Way Forward

• India is increasingly integrating itself into the global economy, as evident in the recent trade agreements signed with Australia and the United Arab Emirates (UAE).
  • This momentum has been accompanied by wide-ranging internal reforms, and improved ease of doing business.
• India’s ties with European countries have strengthened in recent years, with cooperation spanning a wide range of areas.
  • A deepening of economic engagement is a natural progression.
• India should consider expanding the scope of investment issues from mere facilitation to effective protection, with an efficacious dispute settlement mechanism under international law.
• India needs a clear FTA policy, especially in dealing with international trade and foreign investment laws.
• A clear and comprehensive FTA policy is imperative for launching India to a higher economic growth trajectory.

General Studies Paper -2 

Context: The expansion of Universal health coverage will be complex, but data and digital technology can smoothen the way.

Universal Health Coverage

• Meaning:
  • Universal health coverage (UHC) means that all people have access to the full range of quality health services they need, when and where they need them, without financial hardship.
  • It covers the full continuum of essential health services, from health promotion to prevention, treatment, rehabilitation, and palliative care across the life course.
• SDG target:
  • Achieving UHC is one of the targets the nations of the world set when they adopted the 2030 Sustainable Development Goals (SDGs) in 2015.
• UHC in India:
  • Currently, India aims to attain UHC through the expansion of the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), the flagship publicly financed health insurance (PFHI) scheme of the Union government.

Challenges

• Off-track progress:
  • The world is off track to make significant progress towards universal health coverage (Sustainable Development Goals (SDGs) target 3.8) by 2030.
• Stagnation:
  • Improvements to health services coverage have stagnated since 2015, and the proportion of the population that faced catastrophic levels of out-of-pocket health spending increased continuously since 2000.
  • This global pattern is consistent across all regions and the majority of countries.
• Shortage of manpower:
  • Many Western and Central Asian nations today are staring at acute shortages of manpower in healthcare.
• Disruption due to pandemic:
  • The COVID-19 pandemic further disrupted essential services in 92% of countries at the height of the pandemic in 2021. In 2022, 84% of countries still reported disruptions.
• Increasing poor and non-poor gap:
  • A greater proportion of disposable incomes is taken away from a poor household as compared to a non-poor one, further broadening the gap between the two.
    • If sickness hits a working member of the household, she/he must often withdraw from active employment and their main source of income dries up at the time when they urgently need more money for treatment.
    • Households have to often sell or mortgage their productive assets, such as land and cattle, to cover the treatment costs.
    • This further reduces their capacity to bounce back.
  • According to the WHO, 55 million people fall into poverty or deeper poverty every year due to catastrophic expenditures on health.
• Lesser spending than the Lower and Middle-Income Countries:
  • India currently spends about Rs 8 lakh crore or about 3.2 percent of its GDP on health.
  • This is much lower than the average health spending share of the GDP — at around 5.2 percent of the Lower and Middle Income Countries (LMIC).
  • Comparing the data:
    • Of this, the government (Centre and states put together) spends about roughly 1.1 percent of the GDP.
    • Contrast this with the government health expenditure in countries like China (3 percent), Thailand (2.7 percent), Vietnam (2.7 percent) and Sri Lanka (1.4 percent).

Suggestions

• Global Initiative on Digital Health:
  • It is here that India’s leadership in digital health becomes significant. Under India’s G20 presidency, the WHO has launched a Global Initiative on Digital Health aiming to marshal investments into digital health and facilitate regional and international exchange and reporting on health.
• Role of India’s Digital Health journey:
  • India’s own indigenous digital health movement, the Ayushman Bharat Digital Mission, preceded this initiative and is steadily gathering steam.
  • Digital health must be seen as a tool for effectively managing the inevitably complex nature of UHC expansion.
  • Here, it will have a wide-ranging role to play, right from helping administer diverse contracts to implementing terms for value-based provider reimbursement and incentives.
    • A robust digital and data infrastructure can address most of the challenges.
• Role of AI:
  • Artificial Intelligence (AI) is rapidly transforming health care worldwide, and India has the potential to be at the forefront of this revolution.
  • Diagnostics: One of the key areas where AI can make a significant impact is in diagnostics.
    • AI-powered tools can enhance the accuracy and efficiency of medical diagnoses, leading to faster treatment decisions and better patient outcomes.
  • Predictions & preventions: Additionally, AI can help predict disease outbreaks, analyse health-care data, and optimise treatment plans, expediting health-care procedures, and revolutionising drug discovery ultimately making health care more personalised and effective.
• Need of Spreading the digital and data infrastructure:
  • India is not alone in this journey. Many low- and middle-income countries are also looking to build on their existing systems to expand UHC for their citizens.
  • The Indian example could be instructive for them in terms of policy lessons.
  • Pervasive staff shortages in the West and initiatives such as ‘Heal in India’ could accelerate the medical brain drain even as we suffer major staff shortages of our own.
• Need of Private sector participation:
  • The public sector cannot be the only solution for universal health coverage in India.
  • Expanding PFHIs would entail bringing a large chunk of the private sector under the public fold.
  • Multifaceted nature of modern health challenges require multilateral and synergistic coalitions involving both the public and private sectors.
• WHO’s recommendations:
  • To build back better, WHO’s recommendation is to reorient health systems using a primary health care (PHC) approach.
  • Most (90%) of essential UHC interventions can be delivered through a PHC approach, potentially saving 60 million lives and increasing average global life expectancy by 3.7 years by 2030.

Way Ahead

• It will be imperative that national interests don’t lose ground to international ambitions and that digital technologies are leveraged to create non-competing solutions that are mindful of the Global South.
• Countries need to build on their existing systems, overlaying reforms and best practices incrementally.
• With concerted efforts and a commitment to excellence, a healthier and more prosperous India can be built for generations to come.

General Studies Paper-2 

Context: Recently India’s External Affairs Minister said that India’s relations with Maldives rest on the twin important pillars of ‘mutual interests’ and ‘reciprocal sensitivity’.

Background

• The undiplomatic words used by ministers in Maldives against Prime Minister Narendra Modi in particular and Indians in general has deteriorated the relations between both the nations.
• The new government led by President Mohamed Muizzu asked India to withdraw military personnel and chose China for one of his first overseas visits.

Significance of Maldives for 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.
• Strategic Location: The Maldives is strategically located in the Indian Ocean, and its stability and security are of interest to India.
• Counterbalancing China: Maldives presents an opportunity for India to counterbalance China’s growing influence in the Indian Ocean, fostering regional balance of power.
• Economic partnership: India is one of the biggest investors and tourism markets for the Maldives, with significant trade and infrastructure projects underway.
• Defense and Security Cooperation: Since 1988, defense 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 defense partnership.
  • Estimates suggest that almost 70 percent of Maldives’ defense training is done by India — either on the islands or in India’s elite military academies.

Significance of India for Maldives

• Essential Commodities: India supplies Maldives with its everyday essentials: rice, spices, fruits, vegetables, poultry, medicines and life-saving drugs.
• Education: Every year, Maldivian students come to Indian higher educational institutions.
• Economic dependence: Of the Rs 50 crore total trade between India and Maldives in 2022, Rs 49 crore was India’s exports to Maldives. India emerged as Maldives’ second largest trade partner in 2022.
• Disaster Relief Assistance: When a tsunami struck the islands in 2004, India was the first to send in help.
  • In 2014 Male had a drinking water crisis as the major desalination plant broke down, India overnight airlifted drinking water to the islands.
  • During the Covid-19 pandemic, India sent essential medicines, masks, gloves, PPE kits and vaccines for the island country.

Challenges in Relations

• Domestic turmoil in the Maldives: Recent political upheavals and changes in government have created uncertainty and complicated 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.
• Military ambitions: Chinese naval expansion and potential military ambitions in the Indian Ocean with the active support from Maldives has raised concerns for India.
• Trade imbalance: The significant trade imbalance between India and the Maldives could lead 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 ongoing issues, India and 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-The recently published HDI report and a paper published by the World Inequality Lab in March 2024 reports do not reveal very encouraging trends for India. Thus, the article highlights the need for an alternate growth strategy that accords primacy to human development and converts it as a route to accelerate growth.

What is the performance of India in various development reports?

1. Human Development Index-
   1. According to the United Nations Development Programme’s Human Development Report 2023-24, India ranked 134 out of 193 countries in the Human Development Index (HDI) in 2022.This is a marginal improvement from its rank of 135 in 2021.
   2. India’s HDI value increased from 0.633 in 2021 to 0.644 in 2022, placing it in the medium human development category. However, India still lags behind neighboring countries like Bhutan, Bangladesh, Sri Lanka, and China in terms of HDI.
   3. When adjusted for inequality, India’s loss in HDI is 31.1%, higher than Sri Lanka, Bangladesh, Nepal, and Pakistan.
2. Gender Inequality Index –
   1. India improved its ranking from 122 out of 191 countries in 2021 to 108 out of 193 countries in 2022. However, India has one of the largest gender gaps in labor force participation, with a 47.8% difference between women (28.3%) and men (76.1%).

What is the status of income and wealth Inequality in India?

1. According to the World Inequality Lab study, the bottom 50% of India’s population received only 15% of the national income in 2022-23. The top 1% earned an average of 5.3 million rupees, 23 times the average Indian income of 0.23 million rupees.
2. The richest 10,000 individuals (out of 920 million Indian adults) earned an average of 480 million rupees, which is 2,069 times the average Indian income.

What are its implications?

1. This stark income inequality has implications for aggregate demand, consumption, and human welfare.
2. During 2014-2022, the incomes of the middle 40% of the income distribution has grown slower than the bottom 50%. This indicates a reduction in the size of the ‘middle class’.
3. When growth mostly benefits the wealthy, economic division speeds up. This leads to the emergence of two classes-Have and Have not.

What is the status of household debt and savings in India?

1. Household debt levels in India reached a record high of 40% of GDP by December 2023, while net financial savings plunged to 5.2% of GDP.
2. Annual borrowings of households surged to 5.8% of GDP in 2022-23, the second-highest level in independent India.

Way forward

1. Considering the inadequate human development, significant inequality, minimal savings, and substantial debt, there’s a necessity for an alternative approach to growth that prioritizes enhancing human development.
2. This approach needs strong political commitment and long-term vision, looking beyond immediate electoral benefits.  As a first step, the narrative of development needs to be recast.