General Studies Paper 3

• Context: Business Correspondents (BCs) are the vital cog for the financial inclusion strategy of every bank, with over 95% of banking outlets in rural regions being operated by them. Critically relevant for women customers, BCs have been able to conduct banking transactions, from the convenience of their homes (or nearby their homes), cutting down the transportation cost, time and hesitancy barriers.
• BCs are intermediaries who offer financial services on behalf of financial institutions,such as banks and microfinance organizations, in areas where it is difficult or costly to set up traditional branches. BCs use various delivery channels, including mobile technology, to bring financial services to the doorsteps of underbanked populations.
• Many people, especially those in rural and underprivileged areas, face significant barriers to accessing financial services. This is where Business Correspondents (BCs) come into play.
• Despite the proliferation of BCs, the representation of female BCs is dismally low and the available figures suggest that they form less than 10% of the total BC network. In the current ecosystem, there are still some challenges that make this profession unviable for them and require urgent attention to increase financial inclusion.

Challenges with Women BCs:

• Lack of Financial Inclusion:
  • Many WBCs face difficulties in accessing financial services and credit to grow their businesses due to their lower socio-economic status and lack of collateral.
• Digital Illiteracy:
  • A large number of WBCs are not familiar with digital technology and lack the necessary skills to use digital financial services effectively.
• Minimum Qualification:
  • Minimum qualification is another hurdle that hinders the on boarding of female BCs,especially in underserved rural areas.
  • The current BC/Business Facilitator certification mandated by the RBI from the Indian Institute of Banking and Finance provides a10^th pass as the minimum qualification to appear for the examination.
    • However, many banks have made this onerous by keeping their minimum qualification as 12^th
  • Societal Attitudes:
    • WBCs often face societal attitudes that view women as homemakers and not as entrepreneurs, which can limit their opportunities to grow their businesses.
  • Lack of Support from Government and Financial Institutions:
    • WBCs often lack support from government and financial institutions, which makes it difficult for them to access the resources they need to grow their businesses.
  • Safety Concerns:
    • Many WBCs operate in rural areas where there is a high risk of violence and crime,which can limit their mobility and put them in danger when they are out conducting transactions.
  • Limited Financial Support:
    • There is limited additional financial support provided by Business Correspondent Network Managers or the banks to address the socio-economic hurdles such as mobility and safety faced by a female BC.

Other Challenges with Financial Inclusion in India:

• Lack of Awareness:
  • Many individuals and small businesses in rural and remote areas are unaware of the financial services available to them and their benefits.
• Digital Literacy:
  • With the rise of digital financial services, there is a need for digital literacy and access to technology, which is still lacking in many parts of India.
• Infrastructure:
  • Inadequate physical infrastructure such as roads, telecommunication network and power supply hampers the reach of financial services to remote and rural areas.
• Cost:
  • The cost of providing financial services in remote and rural areas is higher due to the lack of infrastructure, which makes it uneconomical for financial institutions.
• Trust:
  • Building trust among unbanked populations is a major challenge, as many individuals are distrustful of formal financial institutions due to a lack of experience or previous negative experiences.

How can Women BCs help in Deepening Financial Inclusion?

• Rapport:They are capable of buiding a rapport with diverse customer groups and promoting demand-driven incremental revenue while promoting small savings schemes and social security offerings.
• Transparency:The higher number of women agents can increase system transparency. Women BC agents have more patience and are more willing to address queries or explain product features.
• Encourage Other Females: Female customers are willing to share their family’s financial issues and needs more openly with female BC agents leading to a better understanding of product sell.
• Performance:On the performance front, female BC agents bring similar or more business and might serve more of the underserved. They are more likely to serve customers in remote areas, the elderly, and other underserved sections of the population, according to customer perspectives. They are less susceptible to malpractices and are less prone to commit fraudulent acts towards customers.

What are the Related Steps taken?

• One Gram Panchayat One BC Sakhi:
  • It was initiated by the Ministry of Rural Development as an ambitious plan to increase these numbers and deploy at least one BC Sakhi in every Gram Panchayat   by the end of 2023-24.
  • Studies indicate that female BCs show higher profitability, wider cross-selling of financial products and lower attrition rates.
  • During the lockdown, Self-Help Group (SHG) members engaged as BC Sakhis (female banker friend) played a crucial role in creating awareness and enabling access to  Pradhan Mantri Garib Kalyan Yojana cash transfers and other Direct Benefit Transfers  at the doorstep as well as reducing the rush of the beneficiaries at bank branches.
• Other Schemes:
  • Pradhan Mantri Jan Dhan Yojana
  • Digital Identity (Aadhaar)
  • National Centre for Financial Education (NCFE)
  • Centre for Financial Literacy (CFL) Project

Way Forward:

• Designing Gendered Recruitment Strategy to attract BCs:
  • By designing a gendered recruitment strategy to attract more women BCs , including setting specific targets for their staff and corporate BCs, and training and incentivising corporate BCs to identify potential women candidates can help overcome the structural barriers that women face.
  • The key is to reduce entry barriers by taking favourable actions such as providing equipment and rental support (rather than requiring women to make upfront capital investments), adding incentives such as an initial stipend for the first year, solving mobility issues, offering flexible hours of operation and providing protection to women BCs and their families, on the lines of health insurance, etc. which will encourage more women to opt in.
  • Finally, creating a supportive environment for women BCs through training, mentoring, ensuring ongoing support (through dedicated officials) and creating women agent communities, will then help them thrive long term.
• Expansion of Digital Infrastructure:
  • The Indian government and financial institutions can focus on expanding digital infrastructure, such as broadband connectivity and mobile phone penetration, to reach remote and underdeveloped areas.
  • This will enable people to access financial services from the comfort of their homes.
• Promotion of Digital Literacy:
  • Promoting digital literacy among the population particularly among those who are less educated and live in rural areas is also needed.
    • This can be achieved through various initiatives, such as financial literacy programs and awareness campaigns.
  • Provision of Affordable Financial Products:
    • Financial institutions can provide affordable financial products that cater to the specific needs of low-income groups,such as small loans, microinsurance, and savings accounts with low minimum balances.
  • Collaboration between the Public and Private Sectors:
    • To increase financial inclusion, it is important for the public and private sectors to collaborate and work towards a common goal.The government can create a favorable regulatory environment, while financial institutions can provide the necessary financial services.
  • Focus on Women’s Financial Empowerment:
    • Women are often left out of the traditional banking system, and they need to be specifically targeted to increase financial inclusion.
    • This can be achieved by providing women with access to financial services, promoting their participation in the labor force, and addressing the gender-based barriers that prevent them from accessing financial services.

General Studies Paper 2

• Context: Recently, the 11^thmeeting of the India-Mongolia Joint Working Group was held in India.
• While acknowledging the growing ties between both the countries, they expressed satisfaction at the ongoing defense cooperation despite the limitations imposed by Covid-19 pandemic.

How have been the India-Mongolia Relations?

• Historical Relations:
  • India and Mongolia have interacted through Buddhism through out history.
  • Mongolia regards India as its “third” neighbor along with US, Japan, and Germany and a “spiritual neighbour”.
• Diplomatic Relations:
  • India established diplomatic relations with Mongolia in 1955and it was the first country outside the Soviet bloc to open diplomatic relations with Mongolia.
  • The Indian Resident Mission in Ulaanbaatar was opened in 1971.
    • This relationship was upgraded to “strategic partnership” in 2015 when the Indian Prime Minister visited Mongolia and declared it as an essential component of  ‘Act East Policy’.
  • International Cooperation:
    • Mongolia has publicly reiterated its support for India’s membership to the permanent seat of the expanded United Nations Security Council (UNSC).
    • India has played an important role in getting Mongolia membership to key international forums, including the United Nations (UN),   despite strong opposition from China and Taiwan.
    • India also championed the inclusion of Mongolia in the Non-Aligned Movement.
      • In a reciprocal gesture, Mongolia co-sponsored a 1972 UN resolution with India and Bhutan for the recognition of the newly liberated Bangladesh.
    • Economic Cooperation:
      • In 2022, an India-built oil refinery at the cost of more than USD 1 billion and with a capacity of 1.5 million metric tonnes was opened near Sainshand in southern Dornogovi province of Mongolia.
        • This refinery will take care of 75 % of Mongolia’s oil refining needs.
      • India – Mongolia bilateral trade was USD 35.3 million in 2020, down from USD 38.3 million in 2019.
    • Cultural Cooperation:
      • The India-Mongolian Agreement on Cultural Cooperation, signed in 1961,has governed the Cultural Exchange Programme (CEP) between the two countries.
      • The Agreement envisages co-operation in the fields of education by way of scholarships, exchange of experts, participation in conferences, etc.
    • Defence Cooperation:
      • Joint defence exercises code-named  Nomadic Elephant
      • India is also an active participant in an annual week-long joint training exercise called the Khaan Quest, hosted by Mongolia.
    • Cooperation over Environmental Issues:
      • Part of the  Bishkek Declaration (snow leopard).

Way Forward

• The way forward for India-Mongolia relations is to build on the existing foundation of historical and cultural ties, while also seeking to expand political, economic, and cultural cooperation.
• Mongolia’s strategic position at the cross junction of Central Asia, Northeast Asia, far East, China and Russia attract major powers towards it.India should consider Mongolia as a green zone of economic development that absorbs hi-tech features and production skills in a modernization process.
• With both countries facing common challenges in the region, there is tremendous potential for further strengthening the relationship in the coming years.

General Studies Paper 3

• Context: Rising number of children in the extraction of the e-waste  sector is a crude and hazardous process that goes unregulated.
• According to the Global E-waste Monitor 2020, the world dumped 53.6 million metric tons of e-waste in 2019. India produced 3.2 million metric tons of e-waste, much of which is dumped for dismantling and recycling in Seelampur with no regulations.

About e-waste:

• The term electronic and electrical waste (e-waste) refers to “electrical or electronic equipment, which is waste, including all components, subassemblies, and consumables, which are part of the equipment at the time the equipment becomes waste”.
• E-waste includes large, discarded appliances, such as refrigerators, air conditioners, and washing machines, as well as small personal items, including computers, televisions, mobile phones, and many other devices that are operated by electrical currents or batteries.

What health risks are the children exposed to?

• Toxic substances: Toxic substances such as lead, cadmium, mercury, and flame retardants, can be harmful if not properly disposed of. Serious skin diseases and chronic lung infections due to continuous exposure to these chemical-laden toxins.
• Disabilities: Even relatively low lead exposure in children can result in a reduction in total intelligence quotient (IQ) and several behavioural abnormalities, including a decrease in attention span and an increase in frustration and disruptive behaviour.
• Exposure to hazardous waste: Like Nickel, Mercury can cause long-term incurable diseases.
• Environmental contamination: Contaminated soil and water potentially affect the health of local populations, including children.
• Loss of access to educational opportunities: In some developing countries, e-waste dumping has caused environmental degradation and health problems, leading to school closures and limiting children’s access to education.

India’s initiatives to tackle e-waste:

• Extended Producer Responsibility; Design for Environment; (3Rs) Reduce, Reuse, Recycle technology platform for linking the market facilitating the circular economy aim to encourage consumers to correctly dispose of the e-waste.
• E-waste (Management) rules 2022
• India has tried to tackle this unregulated industry and introduced a series of laws in 2011 and 2016mandating the authorization and registration of all e-waste recycling facilities, along with directives for workers to use protective equipment while dismantling the waste.
• India’s first e-waste clinic to be set up in Bhopal

Way Forward:

• Recycling electronic devices through certified e-waste recycling programs or donating them to organizations that can reuse them can help reduce the issue of e-waste.

General Studies Paper 1

• Content: India is expected to cross China and become the world’s most populous country in April this year.

Population projections for India and China:

• According to United Nations Population Division data, India will surpass China in 2023 by 3 million people and the gap will only widen with time.
• The two countries have accounted for around 36% of the world’s population since the 1950s. In 2022, it was 35.6% and is estimated to be 5% in 2023. By 2100, India and China will account for 22.2% of the world’s population.

What does the statistics say about the demographic dividend in India?

• According to an analysis by Pew Research Center, roughly one-in-five people globally who are under the age of 25 live in India.
• Those below 25 years of age accounted for 13% share in India’s total population in 1950. By July 2023, it will be 42.7%.
• The share of those in the age group of 25-64 will be 2% by July 2023. However, the share is projected to change by 2100. Share of those below 25 years of age will further decline to 23.9%. The share of those in the age group of 25-64 will rise to 46.3%.

What does the statistics say about fertility rate in India?

• India’s total fertility rate (TFR) was 5.73compared to a global rate of 4.86 in 1950.
• In 2022, India’s rate was estimated to be 2.01while the global rate is 2.31. China’s TFR declined from 5.81 in 1950 to 1.18 in 2022.
• Data from the National Family Health Survey shows that the fertility rate in urban India has fallen from 2.06 in 2005-06 to 1.63 in 2019-21. The decline in rural India was from 2.98 to 2.14 in the same period.

Migration in India:

• In 2022, more than 487,000 people migrated from India. As per the UN projections, the country is likely to face net negative migration till 2100.
• Pew Research Center highlights that India’s net migration has not always been negative. In 2016, India gained an estimated 68,000 people due to migration.

India also recorded increases in net migration on several occasions in the second half of the 20th century.

General Studies Paper 2

Context: Trade Ministers of Norway and Finland are currently visiting India together.

Importance of the Nordic region

• Over the last decades, Nordic countries have been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, and carbon capture and storage.
• The Nordics have succeeded in building stable, secure, welfare based societies to a large extent.
• The Nordic region has ambitions to become the most sustainable and integrated region in the world by 2030.

Current status of relations between India and Nordic countries

• The Nordic ­India Summit was held in Copenhagen in May 2022. The five Nordic leaders and Indian Prime Minister agreed to intensify cooperation on digitalisation, renewable energy, maritime industries, and the circular economy.
• PM of India expressed an interest in joint Nordic solutions that can support India’s green transition.
• The Nordic business community in India is also growing. There are now 240 Norwegian and Finnish companies in India.
• India and Finland– The past year has seen a significant rise in trade and investments between Finland and India.
• India has grown to become a priority country for Finland. Finland has recently opened a new Consulate General in Mumbai.
• Several Indian companies are looking towards Finland for its expertise in areas of technology and innovation, sustainability, digitalisation, carbon neutrality and more.
• An increasing number of Indian students, researchers, and experts have been moving to Finland as well. Finnish companies such as Nokia and Fortum have some of their most significant investments in India.
• India and Norway– Trade between Norway and India has doubled in the last three years. The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors with around $17.6 Billion investment.
• The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been defined as a focus country. Almost ₹1,500 crore have been invested so far in India through the climate investment fund.

Scope for future collaborations between India and Nordic countries

• Both Norway and Finland have ongoing free trade agreement and investments negotiations with India. Finland, is a part of the EU­ India FTA negotiations, and Norway is negotiating through the European Free Trade Association.
• Finalising the free trade and investments agreements should be a priority.
• There is a great deal of complementarities in our trade relations. In addition,trade in services is an area of significant potential, especially with tourism, education, IT, energy, maritime and financial services.
• Together, the Nordics and India can power the green transition the world needs.

General Studies Paper 2

Context:

• Recently, India’s National Security Advisor held talks with the US counterpart on the first dialogue on the Initiative for Critical and Emerging Technologies (iCET) in the US.

About Indo-US “strategic partnership” in the past

• Both countries signed a)“Next Steps in Strategic Partnership” in 2004; b) “Defence Framework Agreement” in 2005, c) “Indo-US Civil Nuclear Agreement” in 2008 and d) all four key “foundational agreements”.
• Both nations also launched the “Defence Technology and Trade Initiative” in 2012. The US accorded “Major Defence Partner” status to India in 2016, c)“2+2 dialogue” in 2018.
• All of Indo-US “strategic partnership” has delivered $22 billion worth of military hardware purchases by India via the foreign military sales programme.

Advantages of iCET

• iCET could 1)Be a “game changer” in catalysing Indo-US technology cooperation by persuading the US to lift existing export control restrictions, 2) Encourage the private sector of both countries to cooperate in sensitive sectors, 3) Demonstrate a mutual commitment to investing in advanced technologies, such as quantum computing, AI and space, as well as the critical field of semiconductor design and manufacture.

Challenges faced by India’s defence sector

• India’s massive defence industrial complex, including the DRDO, defence public sector undertakings (DPSU) and the (erstwhile) Ordnance Factory Board, are associated with closely the Soviet/Russian arms
• India’s previous transfer of technology (ToT) resulted in engineers and designers acquiring only the “knowhow” of methods and procedures required for assembling or building aircraft, aero engines and armoured vehicles from parts or material supplied. Hence, the principles and laws of defence equipments are not completely understood.

Challenges faced by iCET:

• The US Arms Export Control Act not only requires clearances from the Departments of State and Defence for ToT but also imposes certain restrictions on the recipient state.
• The iCET aims to make the US a dominant player in India’s defence procurements by replacing Russia. But, this will face stiff resistance from Russia.
• While India is in dire need of technology, the US industry remains firmly focused on trade.

What India needs to do to make iCET comprehensive?

• India need to leverage its considerable purchases in the arms, energy, civil aviation, nuclear and other sectors in a holistic manner to extract technology from the US.
• Atmanirbharta must remain India’s ultimate aim. Hence, India should break free of Russia’s and US’s defence products and also regain “strategic autonomy” in international affairs.

General Studies Paper 3

• Context: Infrastructure is universally acknowledged as a key driver of growth. The term infrastructure, however, is usually associated with physical assets,such as roads, ports, power transmission lines, etc. However, in recent years, India’s growth story has been closely associated with a strong focus on not only physical, but also social and digital infrastructure.
• Budget 2023 gives a powerful thrust to these three dimensions of infrastructure development which, put together, accelerate inclusive growth. The targeted investments will not only create vital physical infrastructure and improve connectivity that will accelerate the movement of passengers and freight, but also create jobs, spur private investments, and provide a cushion against global headwinds.
• In Budget 2022-23, India focused on giving the necessary push to the economy by investing in various infrastructure projects. In the upcoming Budget, the infrastructure sector will receive a similar amount to reach India’s goal of becoming a USD5 trillion economy by 2025

Proposed Allocation in the 2023-24 Budget:

• India’s Capital Expenditure:
  • India’s capital expenditure  as a percentage of GDP increased from 7% in 2014 to nearly 2.9% in 2022-23.
  • For infrastructure, Rs 10 lakh crore (3.3% of GDP) was allocated in the budget 2023-24, an increase of three times from 2019.
• Largest Allocation:
  • The Ministry of Railways received its highest-ever allocation of Rs 2.4 lakh crore,approximately nine times the allocation in 2013-14.
  • The Ministry of Road Transport and Highways saw a 36% increase in its budget to about Rs 2.7 lakh crore.
• Extension of Interest-Free Loan to States:
  • The direct capital investment by the Centre has been further supplemented by a one-year extension of the 50-year interest-free loan to state governments to encourage infrastructure investment and incentivise complementary policy actions, with a significantly increased outlay of Rs 1.3 lakh crore.
    • This will lead to decentralised infrastructure development in urban and peri-urban areas across regions.
    • Increasing allocations to PM Awas Yojana  by 66% will not only provide rural workers with housing, but also create jobs.

Why is India’s Infrastructure Push Challenging?

• Physical Infrastructure:
  • Land acquisition:One of the biggest challenges in building physical infrastructure is acquiring land, as it often involves resettlement of people and compensation issues.
  • Funding:Funding large-scale infrastructure projects is also a major challenge, as the government may not have sufficient resources and private investment may be limited due to economic and regulatory hurdles.
  • Lack of Technology: India faces challenges in terms of the availability of technology and expertise necessary for complex infrastructure projects.
• Social Infrastructure:
  • Inadequate Human Resources:The shortage of skilled workers, engineers, and managers can be a hindrance to the development of social infrastructure projects.
  • Lack of Public Support:Social infrastructure projects, such as healthcare and education, require public support and buy-in, which can be difficult to secure in a complex political environment.
  • Inadequate Planning and Implementation:Poor planning and implementation can result in substandard facilities and a lack of sustainability, ultimately reducing the impact of the infrastructure push.
• Digital Infrastructure:
  • Digital Divide:There is a digital divide  in India, with limited access to technology and the internet in rural areas, which can hinder the development of digital infrastructure.
  • Cybersecurity Concerns:The increasing use of technology also raises concerns about cybersecurity  and privacy, making it necessary to have strong regulations and infrastructure in place.
  • Lack of standardization:The lack of standardization and coordination among different players in the digital infrastructure sector can create problems for users and limit the potential for growth and innovation.

Related Initiatives:

• For Digital Infrastructure:
  • First Phase:
  • JAM trinity— Jan Dhan, Aadhaar and mobile linkages
    • Digital India programme
  • Second Phase:
    • Development, application, and large-scale expansion of cutting-edge technologies such as 5G, Internet of Things (IoT), Artificial Intelligence (AI), quantum computing,  mechatronics, robotics and more.
    • An important domain that the government is focusing on currently is creating open AI resources.
    • Example:
      • Digital India Bhashini portal is India’s Artificial Intelligence (AI) led language translation platform.
      • The Agriculture Accelerator Fund announced in the budget will enable the Indian agricultural ecosystem (startups, businesses, and farmers) to work collaboratively and find knowledge-based and farmer-centric solutions.
    • Social Infrastructure:
      • Mission to Eliminate Sickle cell Anaemia:
        • In the Union   Budget 2023-24, the government has announced a mission to eliminate  Sickle cell Anaemia by 2047.
      • PM Poshan Shakti Nirman or PM Poshan:
        • It is the largest school feeding programme of its kind in the world, covering students enrolled in government schools from Classes 1 to 8.
      • Beti Bachao Beti Padhao:
        • It was launched in 2015 with the aim to address sex selective abortion and the declining child sex ratio which was at 918 girls for every 1,000 boys in 2011.
      • Physical Infrastructure:
        • PM Gati Shakti Scheme:
          • It aims to ensure integrated planning and implementation of infrastructure projects in the next four years, with focus on expediting works on the ground, saving costs and creating jobs.
        • Bharatmala scheme:
          • In 2022, India saw a major push in construction of highways with more than 5000 kms of National Highways constructed.
          • Targeted development of highways under the Bharatmala scheme has helped in bridging of infrastructure gaps in development of economic corridors

Way Forward:

• Investment in social infrastructure:
  • Investment in social infrastructure can lead to a more productive and proficient workforce,reduced mortality, wasting and stunting, increased social mobility and a higher quality of life.
    • Social infrastructure includes education and skilling, public health and nutrition, drinking water and sanitation.
  • These factors contribute to a stronger and more inclusive economy and holistic development.
• Increased Public-Private Partnerships (PPPs):
  • The government can partner with the private sector to finance, design, construct, and operate infrastructure projects.
• Improved Project Planning and Implementation:
  • The government can streamline project planning and implementation processes to ensure that projects are completed on time and within budget.
• Implementation of Innovative Financing Solutions:
  • The government can explore innovative financing solutions, such as infrastructure bonds to mobilize additional funds for infrastructure development.
• Encouraging Foreign Direct Investment (FDI):
  • The government can ease regulations and create a favorable environment for  foreign direct investment in infrastructure development.
• Building Human Capital:
  • The government can focus on building human capital in the form of skilled labour and technical expertise to support infrastructure development.
    • Some ways to build human capital to support infrastructure development:
      • Investing in workforce development programs that provide job training, apprenticeships.
      • Providing access to quality education and training programs
      • Supporting research and innovation in infrastructure-related fields
      • Fostering partnerships between the public and private sectors to encourage investment in human capital development
    • Schemes to build human capital and support infrastructure development include:Skill India, National Skill Development Corporation (NSDC), Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
  • Effective Regulation:
    • The government can establish and enforce effective regulations to ensure the quality and safety of infrastructure projects.
    • Some ways regulations can help:
      • Regulations can set standards for the quality of materials, workmanship
      • Regulations can also specify safety requirements, such as fire safety, evacuation plans, and accessibility standards, which must be met to ensure the safety of the public and the workers involved in the project.
      • Independent inspection and testing which will help to identify any issues or problems that need to be addressed before the infrastructure is put into use.

General Studies Paper 3

• Context: The focus of economic growth has been on income generation. The development of masses, rising inequalities and employment generation is neglected.

Economic scenario of India:

• Private investment plans during the first nine months of this year to be over 50% greater than what they were a year ago.
• India it seems is on a roll as far as economic growth is concerned.
• India has overtaken the United Kingdom to become the world’s fifth largest economy.
• The London Based consultancy Centre for Economics And Business Research (CEBR) predicted that by 2035, India’s economy would reach $10 trillion and become the world’s third largest by 2037.

Why is the West interested in the growth of the Indian economy?

• India is a democracy in the east and also the largest one in terms of population. All the countries in the West are democracies. So, they see a possible alliance of interests.
• India’s growing economic size has made it attractive in a way that it was not before. Its fast growth is an investment opportunity for the surplus savings of the West. Investing money in India is likely to yield the highest returns globally.

What is the status of employment in India?

• Government data show that in mid­ 2022, unemployment among urban males was much higher than it was a decade ago.
• Data from the Centre For Monitoring Indian Economy show that the number of people employed in December 2022 was less than it was in 2016.
• Clearly, the growth of the national economy has not generated an equal growth in employment.

Impacts of growth on Environment:

• Uncontrolled growth will almost certainly result in ecological insecurity.
• The construction of new elevated national highways destroys agricultural land and jeopardizing livelihoods.
• Plans for infrastructure aimed at religious tourism in Uttarakhand and Kerala have caused landslides and flooding. It led to suffering for their people.

What can be done to improve employment opportunities for the masses?

• Employment opportunities for the mass population will arise only when there is demand for goods in the production of which they can participate.
• Growth of the IT sector or of exportable manufactures will not be of much use for them. They possess low education and skills.
• Increased demand for goods of mass consumption alone will lead to an expansion in the demand for these workers.
• For an expansion of this demand,low inflation is essential. Only then will low ­income households have enough to demand more manufactured goods.
• A concerted policy focus can create the conditions for employment generation in India. Welfarism, defined by the free or subsidised distribution of private goods, is no substitute.

Way forward for economic policy:

• India needs growth as it has a backlog of poverty. But growth alone is not enough for improving the lives of the poorest. It is ecologically harmful.
• Size is valuable only when it enhances the well being of the population.

General Studies Paper 2

• Context: India and France are celebrating 25 years of their strategic partnership.

Current status:

• Strategic cooperation– Strategic partnership was signed in 1998. They have shared values and aspirations of peace, stability. Both have a desire for strategic autonomy.
• There are no real substantive disagreements between the two nations.
• There is a high level India-­France political dialogue that is ongoing in defence, maritime, counterterrorism and the Indo ­Pacific.
• Trade and investment– France has emerged as a key trading partner of India. Annual trade was $12.42 billion in 2021­-22.
• It is the 11th largest foreign investor in India with a cumulative investment of $10.31 billion from April 2000 to June 2022. It represents 1.70% of the total foreign direct investment inflows into India.
• Defence partnership– It has emerged as a key defence partner for India, becoming the second largest defence supplier in 2017­-2021.
• Key examples of defence cooperation are the induction of the French Scorpene conventional submarines, built under technology transfer agreement of 2005, and the Rafale fighter jets.
• The Tata group has also tied up with Airbus to manufacture C­295 tactical transport aircraft in Vadodara, Gujarat.
• There is a robust network of military dialogues. They regularly held joint exercises like Varuna, Garuda, and Shakti.
• Civil nuclear cooperation– France was among the first countries with which India signed a civil nuclear deal. It has also played a critical role in limiting India’s isolation in the non­-proliferation order after the 1998 nuclear tests.
• France supports India’s bid for permanent membership of the United Nations Security Council as well as its entry into the Nuclear Suppliers Group.
• Climate change– it is an area of importance for both. India has supported France in the Paris Agreement expressing its strong commitment towards mitigating climate change impact. Both countries launched the International Solar Alliance in 2015.
• Cooperation in the Indian ocean– India and France are resident powers of the Indian Ocean and in the Indo ­Pacific. Both have signed “Joint Strategic Vision of India ­France Cooperation in the Indian Ocean Region” which presented a blueprint for a strengthening of ties. In operational terms, both do joint patrolling in the Indian Ocean.
• Indo Pacific– Both countries have articulated their common vision for a free, fair and open Indo ­Pacific. It seeks to provide comprehensive solutions for maritime security, regional cooperation, and climate change adaptation.
• India and France in September 2022 agreed to set up an Indo­-Pacific Trilateral Development Cooperation Fund that will support sustainable innovative solutions for countries in the region. The two partners have formed a trilateral grouping with the United Arab Emirates to ensure maritime domain awareness and security from the east coast of Africa to the far Pacific.
• Global cooperation– While there are divergences over the Ukraine crisis, there is a broad understanding of each other’s position. Both countries are working together to coordinate on playing a constructive role in the crisis.
• Macron and Prime Minister Narendra Modi are among the few world leaders who have maintained open communication channels with the Russian President and Ukraine’s President.
• Both countries share concerns over the rise of China and its aggressive behaviour.
• Cooperation in emerging areas– They are looking for cooperation in issues such as digitisation, cyber, green energy, a blue economy, ocean sciences, and space.

General Studies Paper 3

Context:

• The Budget 2023-24,has received almost universal praise in the English language media. The Budget is pro-growth, and their prognosis is plausible.

The priorities articulated in the vision for Amrit Kaal:

• Opportunities for citizens with a focus on the youth
• Growth and job creation
• Strong and stable macroeconomic environment
• Saptarishi(seven priorities)
• infrastructure and development
• green growth
• financial sector
• inclusive development
• reaching the last mile, to mention a few

Evidences of growth:

• Data shows that private investment plans during the first nine months of this year to be over 50% greater than what they were a year ago.
• Government proposed a target of $5 trillion within five years (2024-25) for India’s economy.
• India has overtaken the United Kingdom to become the world’s fifth largest economy.
• Consultancy Centre for Economics and Business Research (CEBR): By 2035, India’s economy would reach $10 trillion and become the world’s third largest by 2037.

The West’s self-interest in India:

• There is an element of awe that a country once a byword for famine has sloughed off the dead weight of colonial exploitation and grown.
• India is not only a relatively rare democracy in the east but also the largest one in terms of population.
• As all the countries in the West are democracies, western elites see a possible alliance of interests.
• India’s growing economic size has made it attractive for investors.
• India’s fast growth is an investment opportunity for the surplus savings of the West.
• Investing money in India is likely to fetch the highest returns globally.
• The continuous support from the West about India’s growth reflects a deep-seated self interest.

Issues of unemployment:

• Unemployment was barely mentioned in the Finance Minister’s Budget speech.
• Government data show that in mid-2022, unemployment among urban males was much higher than it was a decade ago.
• Data from the Centre For Monitoring Indian Economy Pvt. Ltd: It shows that the number of people employed in December 2022 was less than it was in 2016.
• The growth of the national economy has not generated an equal growth in employment.
• India does not have an employment policy,either at the Centre or in the States.
• Welfarism, defined by the free or subsidized distribution of private goods, is no substitute.

How will employment opportunities rise?

• Employment opportunities will arise only when there is demand for goods in the production of which they can participate.
• Increased demand for goods of mass consumption alone will lead to an expansion in the demand for these workers.
• For an expansion of this demand, arresting the price of food would be essential.

Way Forward

• India could well grow fast over the next decade-and-a-half without generating sufficient employment for the legion of unemployed youth, especially in rural areas.

• • A concerted policy focus can create the conditions for employment generation in India.

• Political parties seem to be pursuing growth with a view to enhancing their electoral prospects, without concern for a possible negative fallout.
• India needs growth as it has a backlog of poverty. But the growth that one often sees does not do enough for improving the lives of the poorest, such as by generating employment, and is ecologically harmful.

• • Size is valuable only when it enhances the well being of the population.