THE CONTEXT: The COVID-19 pandemic changed the way we think about our economic future and globalisation is now in retreat as well. Though, India recovered relatively quickly from the pandemic, yet it has entered a phase of ‘premature deindustrialisation’.

ISSUES:

• Sustained growth: Industrial policy and strategic state-led economic interventions are back in the world everywhere. The Inflation Reduction Act in the U.S., the European Green Deal, and India’s Atmanirbhar Bharat are prominent examples. However, India’s growth momentum has sustained without much growth.
• Unequal distribution of growth: The fruits of high growth were shared by a small minority which worsened pre-existing gaps of already unequal society. On the one hand, High-end cars get sold out and on the other hand common people struggle to cope with high food prices. This fault line is built into the structure of India’s growth.
• Stagnant manufacturing sector: India has not been able to industrialise sufficiently in last 75 years. Its manufacturing share in output and employment has always been stagnant and below 20%, except during the ‘Dream Run, 2003–08’. Even the 1991 economic reforms, which came with the promise of labour-intensive industrialisation, didn’t alter this reality. India’s industrial investment is stagnating, with high levels of unemployment and chronic disguised unemployment. Its trade deficit largely driven by imported goods, has been widening. India is not able to export goods and even lagging in producing the goods its consumers.
• Poor employment elasticity of services-led growth: India’s experience with services-driven growth since the late 1980s had two negative implications. First, it could not absorb the labour exiting agriculture in the same way that manufacturing would have. Second, the service sector required a large highly skilled workforce that India could not adequately supply. Inequality from services-driven growth is thus much higher than from manufacturing-led growth. The Gini index of inequality for regular wages in the services sector was 44 compared to 35 for manufacturing (Periodic Labour Force Survey, 2021-22).
• Unequal investment in human capital: Early investments in higher education contributed to the near abandonment of mass school education. These higher education institutions cultivated self-serving elites who played a role in India’s IT “revolution” while contributing to industrial stagnation. Thus, investments in human capital were deeply unequal.
• Differ in returns to education: The returns to education differ across classes and social groups. School enrolment is high. Higher education is not as inaccessible as it was earlier. But the differential quality of schooling feeds into the quality of higher education, which feeds into labour market outcomes. The high-skill services pitch would suit the traditional elite but not the majority first generation graduates from colleges in rural areas and small towns. The majority of these students reap poor returns on their investments in education. The poor quality of most state-run schools and colleges is closely linked to the elites renunciation of public education. Even as these fault lines are new forms of class divide in India, they reflect older ones rooted in the caste system.
• A culturally rooted diagnosis: The lack of mass education meant that an important cultural prerequisite for industrialisation was missing. India has looked down upon certain occupations, particularly those that are essential as electrical, welding, etc., partly impeding organic innovation in manufacturing. Industrialists say that India undervalues the vocational skills needed for manufacturing. Certain skills are not valued even if they command higher wages. Artisanal knowledge doesn’t enjoy as much social respect as scholasticism or metaphysical abstraction. Increasing returns and efficiency come from innovation and its diffusion, which are based on mass education and collective absorptive capacity.

THE WAY FORWARD:

• Need of deep industrialisation: India needs deep industrialisation, not just the service sector, that has the power of changing the foundations of society.
• Rise of useful knowledge: Economic historian Joel Mokyr suggests that the rise of useful knowledge is key to technological progress and growth in modern economies.
• Revaluation of culture of growth: A culture of growth also requires the revaluation of labour, production, and technology.
• High skill driven growth: Focusing on skill development programs tailored to the manufacturing sector can address the skill mismatch and enhance the capabilities of the workforce.
• Reviving demand: Supply-side efforts and regulatory reforms will certainly help but the key to the manufacturing-sector revival lies in reviving demand across the economy particularly discretionary spending.
• Boost Investments: Encouraging both domestic and foreign investments in the manufacturing sector can help upgrade infrastructure, improve technology adoption, and enhance productivity. This can be achieved through attractive investment policies, tax incentives, and easing of regulatory procedures.
• Regulatory Reforms: There is a need for streamlining regulatory processes by reducing bureaucratic complexities, and simplifying labour laws can create a business-friendly environment. It can attract investments, foster innovation, and enhance productivity in the manufacturing sector.
• Research and Development: Encouraging R&D activities and innovation in the manufacturing sector can lead to technological advancements and productivity gains.

THE CONCLUSION:

Despite the policy push and various state incentives, the industries in India has been hurt by a decline in its consumer base which has seen incomes come under stress. The industrial sector needs a major revival not just for the sustainability of economic growth, but also for income and employment generation, both of which have been under stress for some time now.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth. (2017)

Q.2 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (2017)

MAINS PRACTICE QUESTIONS

Q.1 There is a continuation of a trend of weakening of industrialisation over the past decade. Analyse the reasons and suggest measures to boost industrial growth in the country.

Q.2 The declining share of manufacturing in overall economic output as well as employment is a worrying sign for the economy’s long-term growth prospects. Comment.

SOURCE: https://www.thehindu.com/opinion/op-ed/why-india-needs-deep-industrialisation/article67841633.ece

THE CONTEXT:

The Tamil Nadu Governor’s refusal to read a state government-drafted speech citing falsehoods politicizes the Governors’ statutory address. This highlights the tension between appointed Governors and elected state governments and their non-partisan role conflict.

THE ISSUES:

• Governor’s Role in a Parliamentary Democracy: In a parliamentary democracy, the Governor’s role is mainly ceremonial, and they are expected to follow the elected government’s advice. The recent controversy regarding Tamil Nadu Governor R.N. Ravi’s refusal to read out a DMK-run government address highlights the need for the Governor to remain apolitical and unbiased, as mandated by the Constitution.
• Centre-State Relations and Criticism in Governor’s Address: The Governor’s address should reflect state policies & achievements, despite criticism of the Centre. Refusal to read based on misleading claims will infringe on the state’s right to articulate its stance.
• Dignity of the Assembly and Conduct of Constitutional Functionaries: The conduct of constitutional functionaries, such as the Governor and the Speaker, should uphold the dignity of the Assembly. Any public disagreement or confrontation between these functionaries can detract from the solemnity and respect due to legislative institutions.
• Governors as Political Agents of the Ruling Party at the Centre: Governors who act as political agents for the central government are compromising the autonomy of state governments and disrupting the federal balance. This issue deserves urgent attention to maintain the integrity of the constitutional authorities.
• Constitutional Powers and Limitations of Governors: Governors have limited discretionary powers that should be exercised judiciously. Using these powers to obstruct or undermine state governments led by political adversaries is misusing the gubernatorial office.

THE WAY FORWARD:

• Code of Conduct for Governors: A ‘Code of Conduct’ should be established and approved by the state governments, the central government, the parliament, and the state legislatures. This would lay down norms and principles to guide the governor’s functions, ensuring that their actions align with constitutional expectations and are not influenced by partisan interests.
• Transparent Appointment Process: The procedure for appointing governors should be laid down, with the conditions of appointment made explicit. This could involve a more transparent and consultative mechanism, such as a collegium or a parliamentary committee, to select candidates based on merit and suitability, thus reducing political bias in appointments.
• Limiting Discretionary Powers: Healthy conventions should guide the discretionary powers of Governors and should not be used to favor a particular political party. The Supreme Court’s ability to investigate claims of malafide in the Governor’s report could be extended to cover malafide in the invitation process to form a government.
• Stability and Autonomy for States: To ensure more stability and autonomy for the states, it is suggested that a governor should be removed only by a resolution of the state legislature. This would prevent arbitrary removals and reinforce the federal structure.
• Judicial Intervention: The Supreme Court can continue to monitor the conduct of governors and issue directions or observations to ensure that their actions are not arbitrary or partisan, thus upholding the federal principle of Indian polity.
• Constitutional Amendments: Amendments to the Constitution could be made to change governors’ appointment and removal process, making it more difficult to remove them without substantial grounds, such as requiring a resolution of the state legislature or a judicial review.
• Accountability to State Legislature: Consider making the governor accountable to the state legislature, like how the President is accountable to the Union Parliament. This would enhance the governor’s responsibility towards the state’s interests.
• Regular Review and Recommendations: Committees like the Sarkaria and Punchhi Commission have recommended improving Centre-State relations. Regular reviews and implementing such recommendations can help address the evolving dynamics of federalism.
• Education and Training: Educating and training governors about their constitutional roles and responsibilities can help prevent the misuse of their office. This would also include emphasizing the importance of maintaining the dignity of the Assembly and the conduct of constitutional functionaries.

THE CONCLUSION:

The central government’s misuse of the governor’s role for political gain challenges the principles of federalism and risks undermining respect for the position. This could negatively impact democracy and governance at the state level. Addressing this issue and ensuring the governor’s role remains impartial is essential.

UPSC PAST YEAR QUESTIONS:

Q.1) Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (2022)

Q.2) Whether the Supreme Court Judgement (July 2018) can settle the political tussle between the Lt. Governor and elected government of Delhi? Examine. (2018)

Q.3) Discuss the essentials of the 69th Constitutional Amendment Act and anomalies, if any, that have led to recently reported conflicts between the elected representatives and the institution of the Lieutenant Governor in the administration of Delhi. Do you think that this will give rise to a new trend in the functioning of Indian federal politics? (2016)

MAINS PRACTICE QUESTION:

Q.1) Discuss the recent controversy surrounding the refusal of Tamil Nadu Governor to read out the address prepared by the state government, citing misleading claims and facts. What are the implications of such actions on Centre-State relations and India’s federal structure?

SOURCE:

https://www.thehindu.com/opinion/editorial/the-real-travesty-the-hindu-editorial-on-the-governor-of-tamil-nadu-and-the-governors-address/article67838996.ece

TAG: GS 1: GEOGRAPHY

THE CONTEXT: A new study published in Nature Communications reveals a troubling trend in the Arctic Ocean, where marine heatwaves have occurred for six consecutive years from 2015 to 2021.

EXPLANATION:

• This analysis delves into the study’s findings, emphasizing the implications of these heatwaves on the Arctic ecosystem and the concerning impact on sea ice cover and biodiversity.

Escalation of Marine Heatwaves in the Arctic:

• Longitudinal Trend Since 2007:
  • Since 2007, the Arctic Ocean has experienced 11 marine heatwaves, with a notable escalation observed from 2015 to 2021.
  • A marine heatwave is defined when surface water temperatures exceed 95% of values from the past 30 years for at least five consecutive days.
• Record Temperature Increase:
  • The average temperature during these marine heatwaves rose by 2.2 degrees Celsius above the seasonal average, indicating a significant warming trend.
  • The years 2007 and 2020 marked critical events, with the latter being the most severe in terms of intensity and duration.

Impact on Arctic Sea Ice:

• Regime Shift Since 2007:
  • A pronounced regime shift has occurred since 2007, transitioning from thicker and deformed ice cover to thinner and more uniform ice.
  • Thicker, several-year-old ice has decreased, while the percentage of thin, seasonal ice is consistently increasing.
• Vulnerability of First-Year Ice Regions:
  • Marine heatwaves primarily affect Arctic marginal seas, including the Kara, Laptev, East Siberian, Chukchi, and part of Beaufort Seas.
  • These regions are predominantly covered by first-year ice, ranging from 0.3-2 meters in thickness, making them more susceptible to heatwave events.
• Solar Radiation Impact:
  • First-year ice impedes thorough mixing between sea layers, preventing solar radiation from reaching lower parts of the sea.
  • This results in unusually high sea surface temperatures, creating conditions conducive to marine heatwave events.
• Abrupt Sea Ice Retreat:
  • Abrupt sea ice retreat is a concern, potentially triggering marine heatwave events.
  • The rate of sea ice melt in June-July has increased, raising alarms about the speed of ice loss over the past 25 years.

Human-Induced Factors and Greenhouse Gas Forcing:

• Connection to Greenhouse Gas Emissions:
  • The study links Arctic marine heatwave events to a record decline in Arctic Sea ice, especially in the years 2007, 2012, and 2020.
  • Human-induced emissions, particularly greenhouse gases, are identified as key contributors to the emergence of marine heatwaves.
• Intensity and Probability Analysis:
  • Events with intensities greater than 1.5°C could not occur without the involvement of greenhouse gases.
  • The observed 2007, 2012, and 2020 events recorded intensities of 3.5°C, 2.1°C, and 4°C, respectively, showcasing the impact of human-induced warming.
• Warning on Persistent Recurrence:
  • Moderate marine heatwave events with intensity between 0.5-1°C may persistently recur if greenhouse gas forcing continues to rise, posing ongoing threats.

Environmental Consequences and Ecosystem Impact:

• Dramatic Consequences Predicted:
  • The study’s authors warn of dramatic consequences, including potential collapse of food chains, reduction in fish stocks, and an overall decline in biodiversity.
• Human-Induced Warming and Marine Heatwaves:
  • The severity and duration of the 2020 marine heatwave, with a probability of less than 1% without human-induced warming, underscore the role of anthropogenic factors.

Conclusion:

• The escalation of marine heatwaves in the Arctic, driven by human-induced warming and greenhouse gas emissions, presents a critical threat to the region’s ecosystem.
• The impact on sea ice, vulnerability of first-year ice regions, and potential consequences for biodiversity emphasize the urgent need for global efforts to mitigate climate change and address the specific challenges faced by the Arctic environment.

SOURCE: https://www.downtoearth.org.in/news/climate-change/marine-heatwaves-in-arctic-shows-worrying-trend-since-2007-marginal-seas-more-vulnerable-study-94437

TAG: GS 3: ECOLOGY AND ENVIRONMENT

THE CONTEXT: The United Nations (UN) has recently identified seven outstanding initiatives from diverse regions across the globe as World Restoration Flagships.

EXPLANATION:

• These projects, acknowledged by the UN Environment Programme (UNEP) and the Food and Agriculture Organization (FAO), are aimed at revitalizing ecosystems on the brink of degradation due to various environmental challenges.
• This analysis delves into the significance of these initiatives, the expected impact on restoration efforts, and their alignment with the UN Decade on Ecosystem Restoration.

Global Recognition for Conservation Excellence:

• The UN’s World Restoration Flagships represent pioneering efforts in restoring ecosystems facing imminent threats from factors such as wildfires, drought, deforestation, and pollution.
• The global recognition, bestowed ahead of the 6th session of the UN Environment Assembly, positions these initiatives as exemplary models contributing to the UN Decade on Ecosystem Restoration.

Key Initiatives Recognized:

• Restoring Mediterranean Forests Initiative:
  • Countries Involved: Lebanon, Morocco, Tunisia, Türkiye.
  • Achievements: Novel approaches leading to the protection and restoration of natural habitats, resulting in the restoration of two million hectares of forests since 2017, with plans for an additional eight million hectares by 2030.
• Living Indus Initiative:
  • Countries Involved: Australia, Bangladesh, Bolivia, Brazil, Canada, Ecuador, India, New Zealand, Peru, Sri Lanka, and others.
  • Objective: Restoration of 25 million hectares of the Indus River basin by 2030, involving high-impact interventions and designating the Indus River as a living entity with rights.
• Acción Andina Social Movement:
  • Led by: ECOAN (Peruvian conservation non-profit).
  • Scope: Aims to protect and restore one million hectares of forest, engaging 25,000 people in Andean communities, with anticipated benefits in various aspects by 2030.
• Sri Lanka Mangrove Regeneration Initiative:
  • Approach: Science-driven and community-led.
  • Achievements: Since 2015, restoration of 500 hectares of mangroves, with plans for an additional 10,000 hectares by 2030, creating over 4,000 new jobs.
• Terai Arc Landscape Initiative:
  • Scope: Restoration of critical forest corridors in the Terai Arc Landscape in collaboration with local communities.
  • Impact: Restoration of 66,800 hectares of Nepal’s forests, improving the livelihoods of 500,000 households, contributing to the increase in the tiger population.
• Regreening Africa’s Agriculture:
  • Benefits: Expected to benefit over 600,000 households, enhancing carbon storage, boosting crop and grass yields, and making soil more resilient.
• Growing Forests in Africa’s Drylands Initiative:
  • Objective: Expand from 41,000 restored hectares to 229,000 hectares by 2030.
  • Involvement: Active participation of African farmers, with millions of trees planted annually, creating 230,000 jobs.

Significance within the UN Decade on Ecosystem Restoration:

• These recognized initiatives align with the UN Decade on Ecosystem Restoration, emphasizing the importance of preventing, halting, and reversing ecosystem degradation globally.
• The awards showcase how these projects contribute to the overarching goal of restoring one billion hectares, surpassing the size of China, and underscore the urgency of addressing the triple planetary crisis of climate change, biodiversity loss, and pollution.

Acknowledging Global Efforts and Addressing Challenges:

• The awards not only acknowledge the remarkable efforts of these initiatives but also highlight the role of local communities in restoration endeavours.
• While celebrating the positive impact on nature, the UN recognizes the need to double down on restoration initiatives amid the ongoing planetary challenges.

Conclusion:

• The UN’s recognition of these World Restoration Flagships serves as a beacon for global conservation efforts.
• By shedding light on exemplary projects spanning continents, the UN emphasizes the importance of collaborative, community-driven initiatives in achieving meaningful ecosystem restoration.
• As these projects gain support and visibility, they contribute significantly to the collective goal of fostering harmony between humanity and the natural world, aligning with the principles of the UN Decade on Ecosystem Restoration.

SOURCE: https://www.downtoearth.org.in/news/environment/from-restoring-forests-to-river-basins-seven-conservation-initiatives-across-continents-recognised-by-un-94424

TAG: GS 1: SOCIETY, GS 3: ECONOMY

THE CONTEXT: Australia is currently in the process of deliberating a groundbreaking “right to disconnect” bill that aims to regulate employers’ ability to contact their employees outside of official working hours.

EXPLANATION:

• This move reflects the changing dynamics of the modern workplace, where technological advancements have blurred the lines between professional and personal life.
• This analysis explores the key aspects of the proposed legislation, global precedents, criticisms, and the potential impact on the work-life balance paradigm.

The ‘Right to Disconnect’ Concept:

• The concept stems from the recognition that the advent of technology, especially with the ability to work remotely, has eroded traditional boundaries of working hours.
• The bill aims to address the challenges posed by the constant connectivity, emphasizing the need to protect employees from being penalized for not being available 24/7.

Australia’s Legislative Move:

• Australia’s proposed legislation is part of broader industrial relations laws known as the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill, 2023.
• The key provision states that an employee can refuse to engage with employer communication outside of their working hours, with the caveat that such refusal must not be deemed unreasonable.

Defining ‘Unreasonable’ Contact:

• The bill introduces the concept of ‘unreasonable’ contact, acknowledging that certain professions may require occasional after-hours communication.
• Factors determining reasonableness include compensation for overtime, the purpose of contact, and the disruption caused to the employee.
• Disputes are to be initially resolved through workplace discussions and, if necessary, escalated to the Fair Work Commission.

Criticism and Concerns:

• Notably, critics, including Australia’s chambers of commerce, argue that such legislation might impede businesses and create hurdles for economic growth.
• Concerns have been raised about potential impacts on women’s participation in the workforce, suggesting that rigid regulations could discourage flexible working arrangements, particularly for parents.

Global Precedents:

• France, Italy, and Belgium have already implemented the ‘right to disconnect.’
• France, for instance, mandated companies with over 50 employees to establish guidelines prohibiting work-related emails during certain hours.
• The global discussion on this right has also reached India, where a Private Member’s Bill in 2018 proposed the creation of Employees’ Welfare Committees to negotiate terms related to out-of-work hours.

Alternatives and Cultural Shifts:

• While the right to disconnect has faced criticisms, some argue that a cultural shift toward flexible working arrangements and increased autonomy for knowledge workers may be a more effective approach.
• This perspective suggests that fostering trust between employers and employees and promoting a balanced work-life environment could address overwork more directly.

Conclusion:

• Australia’s ‘right to disconnect’ legislation represents a significant step in redefining the dynamics of work in the digital age.
• As countries grapple with the challenges of remote work, this legislation raises questions about finding the right balance between protecting employees’ well-being and supporting economic growth.
• The global context, with examples from Europe and India, adds depth to the ongoing discussion, emphasizing the need for nuanced approaches that consider both business demands and the evolving expectations of the workforce.

SOURCE: https://indianexpress.com/article/explained/explained-global/pm-modi-inaugurate-baps-temple-in-uae-features-9159741/

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: A clause in a draft free trade agreement text being negotiated between India and the European Free Trade Association (EFTA) — Switzerland, Iceland, Lichtenstein and Norway — could delay access to affordable, generic versions of patented drugs in India by a minimum of six years.

EXPLANATION:

• The ongoing negotiations between India and the European Free Trade Association (EFTA) – Switzerland, Iceland, Lichtenstein, and Norway – for the Trade and Economic Partnership Agreement (TEPA) have unveiled a potentially thorny clause.
• This clause, related to data exclusivity, could significantly impact India’s thriving generic drug industry, delaying access to affordable alternatives for patented drugs.

Data Exclusivity Clause: A Potential Setback for Generic Drugs

• The leaked draft of TEPA reveals a clause that could extend the exclusivity period for pharmaceutical companies seeking regulatory approval for patented drugs.
• The specific duration mentioned is six years, during which applicants would be restricted from relying on “undisclosed test data.”
• This provision encompasses not only ‘new’ chemical drugs but also ‘biologics drugs,’ such as monoclonal antibodies and vaccine formulations, posing a significant challenge for Indian biotechnology companies.

Concerns Raised by Experts and Organizations:

• The revelation of this clause has raised concerns among experts and organizations working in the pharmaceutical sector.
• Notable among them is the potential delay in access to essential drugs like bedaquiline for tuberculosis patients.
• Legal researchers and organizations, including Medicine Sans Frontiers, have voiced their apprehensions, emphasizing the adverse impact on public health and access to medicines.

India’s Resistance to Monopoly Rights:

• India, with its thriving generics drug industry, has a history of resisting attempts by foreign pharmaceutical companies to extend monopoly rights over patented drugs.
• The generic drug industry in India ranked as the third largest globally.
• It plays a crucial role in producing over 60,000 generic drugs across various therapeutic categories.
• It contributes significantly to the Jan Aushadhi Scheme that provides free drugs to the economically disadvantaged.

Global Negotiations and Intellectual Property Rights (IPR):

• Recent negotiations between India and EFTA have included discussions on balancing concerns related to intellectual property rights.
• Swiss Economy Minister mentioned “balanced solutions” in a recent statement, emphasizing the significance of IPR in the negotiations.
• The details of these solutions remain undisclosed, raising curiosity about how the interests of both parties will be reconciled.

Data Exclusivity Impact on Drug Accessibility:

• The concept of ‘data exclusivity’ is a contentious issue, especially between original drug inventors, often European pharmaceutical giants, and Indian drug manufacturers specializing in reverse engineering.
• Data exclusivity could limit generic drug makers from relying on published clinical trial data.
• It is potentially leading to increased drug prices and delayed availability of generic versions, as witnessed in the case of Colchicine in the United States.

Global Ramifications and Public Health Concerns:

• Experts warn that implementing data exclusivity in India could have broader global ramifications.
• Over the last two decades, India’s absence of data exclusivity in its laws facilitated the affordable entry of new drugs for HIV, tuberculosis, and viral hepatitis.
• Implementing such provisions now may jeopardize access to essential drugs globally, potentially delaying approval for generic versions of crucial medicines.

European Free Trade Association (EFTA):

• It is an intergovernmental organization established in 1960 by the Stockholm Convention.
• It promotes free trade and economic integration between its members within Europe and globally.
• EFTA currently has 4 member countries: Iceland, Liechtenstein, Norway and Switzerland.
• The EFTA countries have developed one of the largest networks of Free Trade Agreements (FTAs).
• These FTAs span over 60 countries and territories, including the European Union (EU).
• In contrast to the EU, EFTA is not a customs union. This means that the individual EFTA States are free to set their own customs tariffs and arrange other foreign trade measures vis-à-vis the non-EFTA States.

Conclusion:

• As the negotiations between India and EFTA progress, the data exclusivity clause emerges as a critical point of contention.
• Balancing the interests of the pharmaceutical industry, public health, and global access to essential medicines is crucial.
• The potential impact on India’s generic drug industry raises questions about the delicate equilibrium between promoting innovation and ensuring affordable healthcare solutions for a diverse and economically varied population.
• The final agreement’s details will be closely watched for the resolution of these complex issues.

SOURCE: https://www.thehindu.com/business/Industry/thorny-clause-in-ripening-india-efta-deal-may-hit-generic-drug-industry/article67842146.ece

TAG: GS 3: ECOLOGY AND ENVIRONMENT

THE CONTEXT: Mizoram, in collaboration with the Sailam Ecological Conservation Society, has successfully concluded the Chapchar Awllen Sava Chhiarpui 2024 (CASC2024).

EXPLANATION:

• It marked the fourth consecutive year of this bird census.
• The effort was aimed at documenting and preserving the diverse avian species within the region.

Census Highlights:

• The closing ceremony, held at the Sailam Bird Sanctuary, celebrated the tallying and documentation of approximately 200 bird species across various locations in Mizoram.
• Bird counting, conducted from early morning till noon, showcased a remarkable array of species, including the Spot-breasted Laughingthrush, Grey Peacock Pheasant, Mount Victoria Babax, Chin Hills Wren Babbler, Green Cochoa, Himalayan Shrike Babbler, and Oriental Darter.
• The census extended beyond Sailam Bird Sanctuary, encompassing Mount Phawngpui, Mount Chalrang Hill, the Kolasib district wetlands, Lawngtlai, and Pawlrang.
• These diverse locations allowed for a comprehensive understanding of the avian population across Mizoram.

Threats to Sailam Bird Sanctuary:

• Despite its significance as a hub for various bird species, Sailam Bird Sanctuary faces threats from rapid urbanization and population growth.
• The sanctuary, which has documented over 270 bird species in the past, now requires focused conservation efforts to safeguard its unique biodiversity.

Awareness Campaign and Conservation Efforts:

• As part of the initiative, an awareness campaign about biodiversity conservation was launched, reflecting the commitment to educating the public about the importance of preserving Mizoram’s rich natural heritage.
• The event saw the participation of over 50 attendees, with Sailam MLA Baryl Vanneihsangi as the chief guest.

Ongoing Conservation Initiatives:

• Efforts to protect Mizoram’s unique biodiversity are ongoing, with a specific focus on Sailam Bird Sanctuary.
• The documented threat to this sanctuary underscores the urgency of implementing effective conservation strategies, balancing the need for urban development with the preservation of natural habitats.

International Participation:

• The involvement of Mizoram in international platforms, such as the United Nations Environment Programme and the International Conference on Animal Sciences, showcases a commitment to global cooperation in addressing ecological challenges.
• The participation of ornithologists from various regions reflects the global appeal of Sailam as a destination for bird enthusiasts.

Sailam Bird Sanctuary:

• Sailam Bird Sanctuary is a hotspot for different species of birds located in Sailam village, about 76 kilometers from Aizawl, Mizoram.
• It is remotely snuggled inside a virgin forest and is home to over 270 species of birds.
• Some of the notable species that can be found here are Spot-breasted Laughingthrush, Grey Peacock Pheasant, Mount Victoria Babax, Chin Hills Wren Babbler, Green Cochoa, Himalayan Shrike Babbler, and Oriental Darter.
• The sanctuary is facing threats from rapid urbanization and population growth.
• However, efforts are being made to protect its unique biodiversity.

Conclusion:

• The successful conclusion of the Mizoram Bird Census not only highlights the rich avian diversity within the region but also underscores the need for sustained conservation efforts. As Mizoram strives to balance development with environmental preservation, initiatives like CASC2024 play a crucial role in creating awareness, fostering international collaboration, and ensuring the continued survival of the region’s unique flora and fauna.

SOURCE: https://www.indiatodayne.in/amp/mizoram/story/mizoram-successfully-concludes-bird-census-200-bird-species-tallied-and-documented-869932-2024-02-12

THE CONTEXT: As, the state of the Indian economy and its prospects have to be based on mathematics and statistics, the recently published data by National Statistical Office needs to be analysed. This helps to understand the government’s economic performance as disclosed in Parliament and subsequently published in the media.

ISSUES:

• Misleading data: Post-COVID-19, the growth rate of GDP has been estimated around 6% + annually but this is misleading because what is not disclosed is that the growth rate that includes recovery as well since 2020-22. Hence, if we calculate the GDP growth rate between 2019-20 and 2022-23, two normal years, it can be calculated less than 4% per year for the period.
• Non acknowledgement: India’s GDP growth rate declined annually from 2016-17, and fell below 3.5% in the fourth quarter of 2019-20. This four-year continuous decline from a 7% growth rate to 3.5% rate has never been acknowledged by the government.
• Slow growth rate: It is essential to recognise that since 2020, the current government publicised development model in reality achieved the so-called “Hindu rate of growth” in GDP, which had been “achieved” during the Congress’s socialist period of 1950-77.
• Incoherence in economy: The ruling government has failed to structure economic policy coherently. Incoherence prevailed during the 2014-2023 period and will perhaps continue in the future as well.
• Misleading media: The misleading announcements of promising predictions are being published annually in the media, with claims made by the ruling government. One such claim made in 2019 was that India will become a $5 trillion economy by 2024. There has been no policy structuring presented to achieve this aim nor has anyone in the government shown willingness to debate it on public fora.
• Falling investment: The investment to GDP ratio has been largely falling for many years now. It peaked at 35.81% in 2007–08, which was 15 years ago. In 2022–23, it is estimated to have been 29.21%, an improvement over the three years before that, but worse than where it was before the pandemic broke out.
• Lesser job creation: Falling of investment in the economy implies the creation of fewer jobs, which has an impact on the incomes that people earn, and which, in turn, affects private consumption and further job creation.

THE WAY FORWARD:

• Taking cue from previous governments: During P.V. Narasimha Rao’s and Manmohan Singh’s tenures as Prime Minister, India departed from the socialist path and the GDP growth rates rose for the first time to 6%-8% per year and over a 15-year period i.e., between 1991-96 and 2004-2014. As, then government understood and took steps to reform the Indian economic system by reducing state participation, and increasing incentives for capital and labour providers and achieved a higher and faster growth rate.
• Transparency: The Indian government is elected democratically and it is obligated to disclose the facts and data transparently to the people.
• To generate demand: In this decade of weak demand and relatively excess supply, resources mobilised by the government should be largely through indirect taxes and also through the liberal printing of currency notes to generate demand from non-rich citizens.
• To generate non inflationary demand: The annual interest paid on fixed-term savings in the bank accounts of the middle class should be higher at 9% or so. The interest rates on loans issued to small and medium industries should be no more than 6% on the loans. These essential reforms need to be carried out to generate non-inflationary demand.
• A new economic policy: The recent economic policy of the government has been an unstructured flop. No announced macroeconomic goal has been achieved by the government till date. Thus, India urgently needs a new economic policy that is based on clearly structured and stated objectives and priorities, and a strategy to achieve the targets, with an intelligent and transparent resource mobilisation plan to finance the policies.
• Free market system: The market system is not a free-for-all and is structured with rules of transactions. A market system with transparent and minimal regulation with principal drivers of incentives and domestic savings pushes up factor productivity and thus the GDP growth rate. Even a totalitarian state such as China implemented this. During Deng Xiaoping’s tenure as paramount leader, it allowed the socialist economic system to die, and allowed economic market-based system, even while maintaining the system of political dictatorship.
• Affirmative action: There is a need for affirmative action including social security and safety nets for creating a stake for the poor in the system. It will create a level playing field to ensure transparency, accountability, trusteeship as well as corporate governance to legitimise profit-making that will drive the market system.
• Empowering democratic institutions: Deregulation should also not mean that we reject government intervention for safety nets, affirmative action, market failures, and creating a level-playing field. Democratic institutions have to be empowered to guard against public disorder arising from rapid deregulation, as it happened in Russia post-1991. Russia underwent chaos and misery, which meant dictatorship returned a loss of human rights and democratic values in Russia.

THE CONCLUSION:

India’s economic growth has witnessed significant fluctuations in recent years and to ensure economic stability the government needs to take up stringent measures. This can be done through adequate investment in human capital development along with effective implementation and coordination among various stakeholders.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (2020)

Q.2 Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)

MAINS PRACTICE QUESTION

Q.1 The GDP-centric framing of Indian economic success is wrong-headed and is a flawed metric of national economic welfare. Comment.

SOURCE: https://www.thehindu.com/opinion/op-ed/the-state-of-the-indian-economy-today/article67838620.ece