11 Dec 2023: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: ECONOMY

1. Strategy for India’s future growth

Syllabus:  Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment

Mains: Growth strategy needed in the uncertain global and domestic  environment

Context: India’s growth faces diverse projections amid global changes like deglobalization, supply disruptions, and geopolitical tensions, necessitating a shift in strategy.

Different Projections for India’s Growth:

• RBI projects India’s growth at 7%, while IMF and World Bank estimate it at 6.3% for 2023-24.
• India’s recent growth rates in the first two quarters support the RBI’s projection.
• Global conditions, including deglobalization and geopolitical conflicts, impact India’s growth strategy.

Improving Investment Rate in the Medium Term:

• India needs to shift from an export-led growth strategy due to changing global dynamics.
• Domestic growth drivers become crucial, requiring a focus on domestic savings.
• Concerns arise from a fall in household savings, impacting resources available for government and corporate investment.
• The nominal investment rate is estimated at 29.2% in 2022-23, but the real investment rate needs enhancement for sustainable 7% growth.

Addressing Employment Challenges:

• India faces a unique situation with a large employable population and increasing labour-saving technologies.
• United Nations projections show the working-age population peaking at 68.9% in 2030.
• Increased allocation for training and skilling required to meet employment demands.
• Non-agricultural growth must absorb labour released from agriculture and counter the impact of new technologies.
• Facilitating the absorption of productivity-enhancing technologies, including AI, is essential.

Tackling Climate Concerns and Technological Changes:

• India commits to reducing carbon emissions with initiatives like the Green Grids Initiative and emphasis on electric vehicles.
• Climate-friendly service sector growth can minimize adverse impacts on the potential growth rate.
• Balancing growth with environmental sustainability and adopting technologies that support employment is crucial.

Fiscal Responsibility for Sustained Growth:

• Adherence to fiscal responsibility targets is critical for sustaining growth.
• Recent slippage in achieving fiscal responsibility targets raises concerns.
• Aim to bring down combined fiscal deficit and debt-to-GDP ratios to 6% and 60%, respectively.
• Achieving a balance or surplus on the revenue account is essential to reduce government dissavings.

The Way Forward:

• The projected growth of 6.5% in the next two years with a focus on recovery.
• Medium-term challenges require attention to raising savings and investment rates.
• Skill enhancement for the workforce, adopting employment-friendly technologies, and achieving environmental sustainability are key priorities.
• Maintaining fiscal responsibility is crucial for sustained and balanced economic growth.
• The overall strategy aims at achieving a growth rate of 7% to 7.5% over the medium term.

Nut Graf: India’s growth outlook varies among RBI, IMF, and World Bank. With changing global dynamics like deglobalization and conflicts disrupting supply chains, India must pivot from export reliance. Focus on domestic savings, skill enhancement for employment, balancing technological advancements with job creation, and fiscal responsibility are pivotal for achieving sustained 7% to 7.5% growth amidst evolving challenges.

Category: ENVIRONMENT AND ECOLOGY

1. Air Pollution in India

Syllabus: Environmental Pollution and Degradation

Mains: Causes and consequences of Air pollution and remedies for it

Context: Despite considerable government efforts, pollution remains a pressing issue in India. Despite initiatives and policies, the severity of air pollution persists, highlighting the ongoing challenges in effectively addressing this critical environmental concern.

Status of Pollution in India

• Manifesto Promises vs. Reality:

• • • In their manifestos of 2014 and 2019, the ruling party pledged significant actions against air pollution, promising pollution audits, clean air plans for cities, and reducing pollution levels substantially.
    • Despite these promises, the ground reality paints a bleak picture. India, particularly its major cities, remains severely polluted.

• Pollution Statistics and Health Impact:

• • • Reports from IQAir and Lancet highlight India’s grim air quality status, with numerous cities listed among the most polluted globally.
    • Air pollution is cited as a major contributor to diseases like COPD, asthma, cancer, and strokes, leading to a significant death toll and reduced life expectancy, especially in urban areas.

• Economic Toll and Negligence:

• • The economic toll of air pollution on India stands at a staggering ₹7.91 lakh crore annually, as reported by the World Economic Forum.
  • Despite launching the National Clean Air Programme in 2019 for 131 polluted cities, government negligence has hindered its effectiveness, leaving citizens vulnerable to the pollution crisis.

Promises but Lack of Delivery

• Government Commitments vs. Reality:

• • • The current ruling party commitments towards pollution control have remained largely unfulfilled, despite repeated assurances in their election manifestos.
    • The National Clean Air Programme, meant to alleviate pollution in cities, has failed to produce tangible results due to governmental neglect.

• Environmental Legislation Amendments:

• • • Amendments made by the government in environmental laws seem to prioritize destruction over protection, exemplified by the impact on forest cover and biodiversity, notably seen in projects like the Great Nicobar Development Plan.

• Central Vista Project and Disregard for Environment:

• • The Central Vista project has led to substantial environmental damage, including the loss of trees in Delhi, and the government’s actions have disregarded building laws for its execution.

Role of Greed in Pollution

• Capital-Centric Development:

• • • The government’s development policies seem guided by corporate interests and profit motives, often at the expense of environmental conservation and public health.
    • Pollution discussions are often steered toward blaming farmers for stubble burning rather than addressing broader issues like industrial emissions and urban planning.

• Market-Driven Development vs. People’s Welfare:

• • Karl Marx’s observation about bourgeois governments managing capitalist affairs resonates today, emphasizing the government’s focus on profit-driven policies over public welfare.

Way Forward

• Urgent Need for Action: The government must prioritize public health over crony profits and urgently address the severe crisis caused by air pollution.

• Exploring Effective Practices: Emulating successful initiatives like “wind path forests” in other countries and India’s concept of “Social Forestry” could provide models for combating air pollution effectively.
• Call for Governmental Action: A call for an all-party meeting by the Prime Minister to strategize and initiate proactive measures in the winter session of Parliament is crucial for safeguarding the environment and public health.

Nut Graf: Despite promising robust measures in their manifestos, India’s air pollution crisis persists, starkly contrasting with ruling party commitments. Reports show alarming pollution levels, impacting health and reducing life expectancy. Governmental neglect, environmental legislation amendments favouring destruction, and capital-centric development strategies reveal a dire need for urgent action prioritizing public well-being over profit-driven agendas.

1. European Free Trade Association

Syllabus: GS 2- International Relations

Prelims: About European Free Trade Association

Introduction

• Trade Ministers from Switzerland and Norway are visiting Delhi, raising hopes for progress in the India-European Free Trade Association (EFTA) negotiations.
• Ongoing talks for the Trade and Economic Partnership Agreement (TEPA) and Bilateral Investment Treaty (BIT) between India and EFTA countries, including Iceland, Liechtenstein, Norway, and Switzerland, have faced challenges over the past 15 years.

Key Points of Concern

• Despite multiple rounds of negotiations, key issues remain unresolved.
• Trade barriers, especially high tariffs on EFTA countries’ exports to India, are a major point of contention.
• Unresolved issues include trade in goods, mobility of services, and market access, with a focus on reducing barriers for high-value-added products.

Challenges Faced by Indian Negotiators

• India’s small pool of skilled trade negotiators faces challenges, managing multiple negotiations simultaneously, including those with the U.K., the EU, and Australia.
• India-U.K. FTA talks are still ongoing, India-EU comprehensive Bilateral Trade and Investment Agreement (BTIA) progress is slow, and the India-Australia Comprehensive Economic and Commercial Agreement (CECA) remains unsigned.

Q1. Consider the following statements:

Q2. Consider the following statements:

Q3. Operation Storm Makers II which targeted the phenomenon of human 
trafficking-fuelled fraud, was conducted by which of the following organisations?

Q4. Consider the following statements:

Q5. Consider the following statements about PM Vishwakarma Scheme: