29 Feb 2024: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: ECONOMY

1. Vignettes of a Janus-faced economy

Syllabus: GS-3, Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

Mains: Contrastincing Economic Indicators of the Indian Economy and Policy Challenges 

Introduction: Dual Nature of the Indian Economy

• Contradictory Economic Performance: The Indian economy exhibits characteristics of both success and distress, making it challenging to assess its overall performance.
• Government and Opposition Challenges: Evaluating economic performance poses difficulties for both the government and the opposition, with claims and counter-claims prevalent in discussions.

Positive Economic Indicators:

• Growth Metrics: GDP growth and size projections, along with high growth rates compared to other emerging economies, are touted as signs of economic success.
• Poverty Reduction: Claims of significant poverty reduction through inclusive policies are made, although independent analysis of these numbers is limited.
• Stock Market Boom: Soaring stock market indices are highlighted as indicators of entrepreneurship and wealth creation, contributing to a “Shining India” narrative.

Indicators of Growth Trajectory:

• High-Frequency Indicators: Various indicators like car sales, air travel, demat accounts, and luxury goods purchases bolster the argument of upward economic mobility.
• Premiumisation Narrative: Consumers buying more expensive products signals income growth and the emergence of a wealthier class.

Distressed Side of the Economy:

• Dual Economic Structure: The coexistence of subsistence agriculture and cash production of industrial goods for the international market highlights economic dualism.
• Welfare Policy Initiatives: Government interventions like free food grain distribution and rural employment schemes address the persisting dualism, indicating that growth benefits are not reaching all segments of society.

Challenges and Concerns:

• Unemployment and Underemployment: Despite official claims of declining unemployment, sectors like agriculture still face significant workforce participation issues.
• Speculative Trading and Financial Risks: The surge in options trading among retail investors raises concerns about speculative behaviour and potential financial losses.
• Sustainable Development Goals: India’s progress towards SDG targets becomes crucial in evaluating the true impact and sustainability of its economic growth trajectory.

Nut Graf: The Indian economy presents a Janus-faced scenario, showcasing both positive indicators like GDP growth and stock market performance, alongside distressing realities such as persistent dualism and speculative trading, necessitating a nuanced evaluation of its overall performance.

Category: SOCIAL JUSTICE

1. The economic case for investing in India’s children

Syllabus: GS-2, Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources

Mains: Importance of early childhood care and education 

Introduction: Recognizing the Importance of Early Childhood Investment

• Despite India’s focus on demographic dividend, education, and job creation, early childhood care and education (ECCE) has been under-invested and overlooked.
• Historical trivialization of ECCE is often seen as mere child’s play or confined to household responsibilities, especially due to its association with women’s roles.
• Increasing recognition of the critical role of ECCE in national development, especially with the government’s emphasis on women-led development.

Shifting Focus to Early Childhood: The Bedrock of Human Capital

• Acknowledgement of human resources is crucial to a nation’s development, with early childhood being foundational to individual human development.
• Past emphasis on primary education accessibility and quality, now transitioning towards addressing learning deficits among young learners, particularly those under six.
• Initiatives like NIPUN Bharat and Poshan Bhi Padhai Bhi aimed at improving foundational literacy, numeracy, and ECCE quality, indicate a shift towards earlier intervention.

Government Commitment and Budget Allocations:

• Encouraging promises in the interim Budget 2024, including the expedited upgrading of Anganwadis and provision of healthcare services for workers.
• Significant budget allocations for ECCE, are reflected in the tripling of expenditure on teaching-learning materials and substantial outlays for Anganwadi centres.
• Comparison of budgetary allocations for ECCE with other sectors highlights its importance in national expenditure and development priorities.

Evidence of Impact and Economic Implications:

• Research evidencing cognitive and motor skills improvement in Anganwadi-attending children, contributing to reducing gender and income-related gaps.
• Individual-level studies indicate increased educational attainment among children exposed to the Anganwadi system.
• Need for further exploration of the macroeconomic implications and potential GDP gains from strong ECCE investment, including improved public health and social outcomes.

Call for Research and Longitudinal Studies in India:

• The urgency for rigorous research in the Indian context to inform evidence-based policy on ECCE investment.
• Highlighting the opportunity cost of inadequate resource allocation to ECCE and the potential returns on investment.
• Emphasizing the need for longitudinal studies similar to international research to assess the long-term impact of ECCE, particularly within the Anganwadi system, India’s largest public ECCE provisioning system.

Conclusion: Investing in India’s Future

• Recognizing the long-term benefits of investing in ECCE for India’s development, particularly in achieving the vision of Viksit Bharat by 2047.
• Drawing parallels with the developmental trajectories of other countries and emphasizing the significance of early human development investment for India’s progress.
• Investing in ECCE is essential for enabling women’s participation in the workforce and ensuring the thriving of India’s children, ultimately contributing to the nation’s prosperity.

Nut Graf: Investing in India’s children, particularly in early childhood care and education (ECCE), is crucial for national development. With shifting focus and significant budget allocations, evidence-based policy and research are needed to maximize the economic and social benefits of ECCE.

Category: SCIENCE

1. India’s fight against rare diseases

Syllabus: GS-3, Biotechnology

Mains: Rare Disease challenges and suggestion to tackle it 

Prelims: About Rare Diseases

Introduction:

• Suhani Bhatnagar’s tragic death from dermatomyositis coincided with Rare Disease Day, highlighting the plight of individuals with rare conditions.
• Rare diseases affect a small percentage of the population, with limited treatment options available globally.
• India bears a significant burden of rare diseases, yet awareness, diagnosis, and treatment remain inadequate.

Challenges in Addressing Rare Diseases:

• India has over 450 identified rare diseases, affecting millions of individuals, particularly children.
• The lack of a clear definition of rare diseases complicates policy formulation and implementation.
• Diagnosis of rare diseases is delayed, averaging seven years, due to a lack of awareness among healthcare professionals.
• Only a fraction of rare diseases have approved treatments in India, and access to these treatments is limited to a few specialized centres.

Budgetary Constraints and Utilization:

• Despite increasing allocations, the budget for rare diseases remains insufficient, leading to underutilization of funds.
• The current allocation of ₹50 lakh per patient is inadequate for lifelong management and therapy.
• Uneven distribution of funds among Centres of Excellence (CoEs) and reliance on crowdfunding indicate a lack of coherent government support.

Way Forward:

• The government must establish a standard definition of rare diseases and increase budgetary allocations.
• Funding should be dedicated to drug development, therapy, and expanding the network of CoEs.
• State governments should implement social assistance programs and establish satellite centres under CoEs.
• Public-private partnerships and CSR initiatives can supplement government funding.
• Addressing exorbitant drug prices requires policy interventions such as waiving GST, incentivizing domestic manufacturing, and facilitating access to affordable treatments.

Nut Graf: India grapples with rare diseases, affecting millions, especially children. Limited awareness, delayed diagnosis, inadequate treatments, and insufficient funding characterize the challenges. Policy reforms, increased budgets, and partnerships are vital for addressing this neglected healthcare issue.