[Mission 2024] Insights SECURE SYNOPSIS: 1 July 2023

NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same

Answer the following questions in 150 words:

General Studies – 1

1. To fully harness India’s demographic dividend, the government must address significant gaps in education and skills training to ensure that the population’s potential is realized to its fullest extent. Analyse.

Reference: Indian Express , Insights on India

Introduction

Demographic dividend, as defined by the United Nations Population Fund (UNFPA) means, “the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older).” India has one of the youngest populations in an aging world. By 2020, the median age in India was 28 years. Demographics can change the pace and pattern of economic growth.

The UN report, World Population Prospects 2022, forecasts that the world’s population will touch eight billion this year and rise to 9.8 billion in 2050. What is of immediate interest to India is that its population will surpass China’s by 2023 and continue to surge.

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India has long been touted as the next big economic growth story after China. India has one of the youngest populations in an aging world. By 2020, the median age in India will be just 28 years. One of the primary reasons for that has been its young population which constitutes 59% of all Indians. Since 2018, India’s working-age population (people between 15 and 64 years of age) has grown larger than the dependent population. This bulge in the working-age population is going to last till 2055, or 37 years from its beginning. The hope has remained that as the young Indian population enters the working age, it will lead to higher economic growth.

Challenges in India to reap the demographic dividend:

• Health:
  • Healthcare provisions in India is grossly inadequate and access to healthcare is highly inequitable. Lack of efficient public healthcare and burden of out-of-pocket health expenditures reduces people’s capacity or disables them from investing in the human capital of their children.
  • ineffective functioning (corruption and leakages) of the public distribution system (PDS), growing economic inequalities and lack of nutritional awareness pose challenges in combating malnutrition
• Education:
  • Basic literacy (the ability to read and write) in the overall population has progressed modestly. However, there is persistent gender differentials, and major differentials by caste and religion.
  • The state of functional literacy and professional skills is poor. Indian graduates have low employability and does not meet changing economic structure or support global competitiveness.
• Rising Inequality:
  • In India, a large portion of the population is below the poverty line, therefore, they do not have easy access to primary health and education.
  • There is growing inequality across social groups and income groups which translates itself into poor socio-economic mobility.
  • Lack of socioeconomic mobility hinders human capital development and traps a large section of population to be in the vicious circle of poverty.
• Lack of Skilling:
  • According to the National Sample Survey, out of the 470 million people of working age in India, only 10% receive any kind of training or access to skilled employment opportunities.
  • There’s a huge mismatch between demand and supply when it comes to skilled workforce and employment opportunities, which could place a strain on the economy in the long run
• Inadequate use of knowledge bases from technology developments:
  • There is a disconnect between India’s rate of technological growth and ability to distribute the gains from it by adequately focusing on skilling and health.
  • The use of technical advancements has been concentrated in few sectors and benefits accrued by a few elitist sections of the society.
• Jobless growth:
  • India’s high growth rate phase (2004-05 to 2010-11) has created significantly fewer jobs as compared to previous decades of economic growth.
  • Around 47 % of India’s population is still dependent on agriculture which is notorious for underemployment and disguised unemployment.
  • Majority of the workforce is employed by the unorganized sector where workers are underpaid and lack any kind of social security.
• Falling female labour force participation:
  • According to data from International Labour Organization and World Bank, India’s female labour force participationrates have fallen from 34.8 % in 1990 to 27 % in 2013.
  • Socio-cultural factors and rising family incomes have been identified as the main reasons for this decline.
  • Another appalling concern is that a significant proportion of qualified women drop out of the workforce for reasons ranging from no suitable jobs in the locality—particularly in rural areas—to family responsibilities and marriage.

A differential planning approach is needed:

• To engineer an inclusive and sustainable growth for India, the social infrastructure like education, health and social protection are being given utmost priority by the Government
• The gaps in the expenditure on social infrastructure like health and education should be closed by strengthening the delivery mechanisms of the government initiatives. Protecting and investing in people’s health, education, and skilling is vital for reducing income inequality, and sustained inclusive economic growth.
• India needs to increase its spending on health and education. As recommended by the National Health Policy 2017 and the NEP 2020, India needs to increase its spending on health and education to at least 2.5 % in 6 % of GDP respectively from its current levels. Enhancing policies to maintain and even increase health and longevity will therefore be necessary.
• The current situation calls for more and better schools, especially in rural areas. It also calls for better transportation links between rural areas and regional urban hubs.
• India has to invest more in human capital formation at all levels, from primary education to higher education, cutting-edge research and development as well as on vocational training to increase the skill sets of its growing working-age population.
• The flagship schemes such as Skill India, Make in India, and Digital India have to be implemented to achieve convergence between skill training and employment generation.
• Bridging the gender gaps in education, skill development, employment, earnings and reducing social inequalities prevalent in the society have been the underlying goals of the development strategy to enhance human capabilities.
• Improved infrastructure, skill development, access to easy finance, reducing barriers to entrepreneurship and forums for mentorship of emerging entrepreneurs in partnership with corporates are some of measures.
• Decentralized models of development: Social policies for each state must be differentiated to accommodate different rates of population growth. The populations in south and west India are growing at a much slower pace than in the central and eastern states.

Conclusion:

A multi-pronged approach is imperative to reap the demographic dividend. There is also a need to engage with the youth and create an enabling environment for entrepreneurship. The demographic dividend offers them a unique opportunity to boost living standards, but they must act now to manage their older populations in the near future by implementing policies that ensure a safe and efficient transition from the first demographic dividend to the second demographic dividend.

2. Effective governance and urban planning strategies that prioritize inclusivity, environmental sustainability, and social well-being are key in order to ensure cities become agents of positive change. Elaborate.

Reference: Down to Earth , Insights on India

Introduction

India’s towns and cities have expanded rapidly as increasing numbers migrate to towns and cities in search of economic opportunity. Indian cities contribute to about 2/3 of the economic output, host a growing share of the population and are the main recipients of FDI and the originators of innovation and technology and over the next two decades are projected to have an increase of population from 282 million to 590 million people.

But various issues hinder the sustainable growth of cities that had led to problems if congestion, poor drainage, urban flooding and so on.

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Issues plaguing the urban areas

The challenges of unsustainability surround the Indian cities at multiple levels.

• First, the urban system is dominated by a few large cities, clustered in the western flank of India, with huge implications for balanced regional development.
  • India suffers from the ‘Tyranny of Capitals’ – with a majority of commercial and demographic activity concentrated into regional seats of power. This concentration skews resource allocation and prevents the development of second cities.
  • Next, large cities control a significant share of the Indian economy, the propulsive industries, and new economic opportunities.
• A majority of cities in India face hard challenges related to housing, transport, electricity, water supply, pollution, and congestion.
• Internally, most cities are also marked by significant social exclusion, crime, and violence.
• Also, the government policies to tackle the urban challenges and to avail the emerging opportunities have been lackadaisical and, in many ways, irrelevant to solve pressing problems.
• City infrastructure across India is in disrepair, and 2017 gave us a series of unfortunate examples in Mumbai: multiple building collapses, a stampede after a pedestrian bridge collapsed, lamentable monsoon floods, and a horrific fire in the Kamla Mills complex.

Important factors on which policy deliberation needs to take place 

• Government’s urban development strategy: There two urban related ministries at the national (GoI) level- the Ministry of Urban Development (MoUD) and Ministry of Housing and Urban Poverty Alleviation (MoHUPA).
  • The Government of India’s overarching urban development objectives is to create economically productive, efficient, inclusive and responsive ULBs, by focusing on strategic outcomes: (i) universal access to a minimum level of services; (ii) establishment of city wide frameworks for planning and governance; (iii) modern and transparent budgeting, accounting and FM; (iv) financial sustainability for ULBs and service delivery institutions; (v) utilization of e-governance; (vi) transparency and accountability in urban service delivery and management; (vii) Slum-free cities.
• Jawaharlal Nehru Urban Renewal Mission launched in 2005 (which was replaced by the Atal Mission for Rejuvenation and Urban Transformation in 2015). The focus of both these missions has been on urban reforms and massive investment in infrastructures, especially in megacities.
• Smart City: Another very important program for the urban development, especially of megacities, by the Government of India—accompanied by huge investments in these cities—is the Smart Cities Mission, which aims at making the cities ‘smart’ through:
  • Promoting mixed land-use;
  • housing and inclusiveness;
  • creating walkable localities;
  • preserving and developing open spaces;
  • promoting a variety of transport options;
  • applying smart solutions to infrastructure and services in area-based development.

Urbanization must lead to economic development

• It is estimated that currently (2020), the share of India’s urban population is about 35% of its total population, but the share of total GDP originating from urban areas is about 70-75%.
  • The share of urban areas in India’s total GDP was 45% in 1990, and rose to 63% in 2014
• It is argued that the rising urbanization will ignite urban consumption, services, and infrastructure, and that the urban focus can put India’s economy on a higher growth path through:
  • Fuelling urban consumption, especially of the premium-end of consumer goods and automobiles;
  • Powering urban services like consumer banking, healthcare, telecom data services, and internet;
  • Driving the infrastructure sector, including civic urban infrastructure services and real estate.
• Human capital and innovation: Cities are the centres of knowledge, innovation and specialization of production and services. Cities facilitate creative thinking and innovation.
• Economic Agglomeration: Agglomeration economies are the positive benefits of economic activities that firms obtain from being located in close proximity with those engaged in similar businesses or interests (i.e. agglomerating).
  • It refers to the reduction of business cost as more efficiency and productivity occur because of positive technological and pecuniary externalities arising from the interaction of economic agents located in close spatial proximity due to economies of scale and knowledge spillovers.

Conclusion

The point of a city is to facilitate interactions between citizens, businesses, and public institutions. These interactions are what drive economic growth within cities – investments from companies, consumption of citizenry, the city investing in interventions that aid its organic growth, and business activity. These factors work best when they are not mutually exclusive. By investing in the development of sustainable cities, India needs to break away from the myth of the compartmentalized city.

General Studies – 2

3. Analyse the strategic partnership pact between India and Egypt and its implications for bilateral relations. Discuss the key areas of cooperation, challenges, and prospects for future collaboration.

Reference: The Hindu

Introduction

India and Egypt have a long history of contact dating back to the time of Emperor Ashoka. They shared relations during the rule of Ptolemy II.

The Government has pushed to enhance India’s bilateral relationships with the Middle-East nations with a renewed vigour over the last decade, indicating strategic importance of the region to India’s interests. Outreach to Egypt is a part of this approach.

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India-Egypt Strategic partnership pact

• The two nations are strategic partners with broadly four elements: political, defence, and security; economic engagement; scientific and academic collaboration; cultural and people-to-people contacts. 
• India and Egypt on Sunday signed an agreement on a strategic partnership as Prime Minister Narendra Modi held bilateral talks with President Abdel Fattah El-Sisi in Cairo.
  • In total four agreements were signed between 24^th June to 25^th June 2023.
• Green and renewable collaboration will be an important part of future partnership with Egypt because of the importance that the two sides attach to clean energy.
• Three Memoranda of Understanding (MoU) in the fields of agriculture, archaeology and antiquities, and competition law were also signed

Key areas of cooperation

• The India-Egypt Bilateral Trade Agreement has been in operation since March 1978 and is based on the Most Favoured Nation clause. Bilateral trade has expanded rapidly in FY2021-22, amounting to US$ 7.26 billion registering a 75% increase compared to FY 2020-21. India’s exports to Egypt during this period amounted to US$ 3.74 billion. Egypt’s exports to India have touched US$ 3.52 billion. 
• Egypt has faced economic challenges due to the COVID-19 pandemic and the impact of the Russia-Ukraine war on its food supply and foreign exchange reserves.
  • In April 2022, Egypt announced inclusion of India in the list of accredited wheat suppliers to Egypt and ended a long Non-Tariff Barrier.
  • However, a ban on wheat exports from India limited the trade, an initial shipment of 61,500 metric tons of wheat was cleared by India for Egypt in May 2022.
  • India has provided assistance by allowing wheat shipments to Egypt.
• Egypt’s foreign debt is over $163 billion (43% of the GDP) and its net foreign assets are minus $24 billion.
• They have collaborated on fighter aircraft development and training. Both countries operate French Rafale fighter jets. Exercise Cyclone-I – first ever exercise between Indian Army and Egyptian Army was held in Jaisalmer recently.
• Space cooperation is an emerging vertical of cooperation in India-Egypt Relationship. Joint Working Group meetings and discussions between ISRO and NARSS (National Authority for Remote Sensing and Space Sciences) have been held, since 2008.

Challenges

• Egypt is being seen as getting close to China. The Egyptian President has visited China seven times in the past eight years, including for the Beijing 2022 Winter Olympics.
• China-Egypt trade is more than double of India-Egypt bilateral trade. Chinese investments outnumber India’s investments.
• Chinese influence over Egypt is not a good development from Indian perspective.
• Egypt is facing domestic economic instability. The Government is battling high inflation of 21%, which has resulted in historically high prices of commodities and daily-use items.
• Forex reserves are also in bad shape. Prolonged economic instability may lead to mass discontent and movement similar to 2011 revolution.
• A new regime (like that came to power in 2013) may not be in India’s strategic interests.

Future prospects

• India and Egypt had lead the way in establishing NAM in the 1950s. Amidst geopolitical uncertainties of present times, India and Egypt should collaborate to strengthen the South-South Cooperation and call for a rules-based global order.
• India’s invitation to Egypt is a welcome step in this regard. Both countries can act as voice of Global South. India PM had remarked in 2015 that India and Egypt should work together to reform the UN Security Council.
• India should scale-up its investments in Egypt. Egypt is a gateway to both Arab World and Africa. Closer economic ties with Egypt can pave way for greater investments and cooperation with African nations.
• India should look to expand the scope of defense relationship from bilateral exercises to joint development/manufacturing projects. Egypt can be a potential destination for India’s defense exports.
• India and Egypt should enhance cooperation to counter terrorism and radicalism.

Conclusion

Egypt holds strategic importance for India. Both nations have shared a strong relationship since ancient times. India and Egypt were the leading countries for the NAM. However, the India-Egypt relationship had witnessed a phase of inactivity and passiveness after the 1990s. There is need to renew the relationship with a new vigour. India and Egypt should collaborate to strengthen the voice of Global South at the global level and push for a rules-based global order in a multipolar world.

General Studies – 3

4. Examine the key challenges faced by startups in establishing effective governance frameworks and suggest measures to overcome them.

Reference: Indian Express

Introduction

A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than ₹100 crore. Today Startups are being widely recognised as important engines for growth and jobs generation. Through innovation and scalable technology, startups can generate impactful solutions, and thereby act as vehicles for socio-economic development and transformation.

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key challenges faced by startups in establishing effective governance frameworks

• Many Indian founders have a technical background and lack business knowledge.
• Finding the right investor and raising funds is difficult Information gap exists between those who provide solutions and those who are supposed to use them.
• Startups are at a disadvantage compared to large companies in terms of market penetration.
• The present regulatory framework in which startupsoperate is widely seen as difficult, inefficient and unpredictable.

Measures needed

• Startup founders have to realise that good corporate governance and financial propriety are key to the success of a business: there is no escape from them.
• By indulging in non-compliance and financial irregularities, even if out of ignorance, they are only queering the pitch for future startups.
• The shift in global focus is on promoting women entrepreneurs and fostering an inclusive and innovative environment. Efforts are also being made by diverse stakeholders in the Indian startup ecosystem to elevate domestic policies in concurrence with global trends.
• The role of the state government becomes very important in developing the necessary infrastructure and support to foster the startup ecosystem. Due to the given constraints of infrastructure and supporting services, India needs to build upon low-cost and high-impact solutions.
• Although there has been an increase in angel and venture capital funding, the amount invested must be augmented. It is crucial that the ecosystem is well integrated to connect startups to fund houses and other stakeholders.
• While it is important to elucidate overarching features of the ecosystem, this report delves deeper into the role of states and India’s federal structure in both building the ecosystem as well as closely monitoring futuristic measures that can aid India’s growth story.

Conclusion

Startups in India are witnessing a golden chapter in the history of Indian entrepreneurship. However, still the Indian government has a crucial role to play in positioning India as the Tech Garage of the World. It should act as a catalyst, and bring together the synergies of the private sector with the aim of innovating for India and the world. Recognising the startup sector with a dedicated observational day will definitely help build awareness about the sector and also draw great talent and investment into this sector.

5. Analyse India’s participation in the Artemis Accords and its implications for space exploration and utilization. Discuss the benefits, and concerns associated with this international agreement.

Reference: The Hindu

Introduction

NASA, in coordination with the U.S. Department of State, established the Artemis Accords in 2020 together with seven other founding member nations. Artemis Accords ensures that space exploration is conducted in a safe, sustainable and transparent manner and in full compliance with international law. It is a non-binding set of principles designed to guide civil space exploration and use in the 21st century. As more countries establish a presence in outer space, via research stations, satellites, or even rocket launchers, these accords provide a set of principles to create a safe and transparent environment that inspires exploration, science, and commercial activities.

Recently, India became the 27^th country to sign the Artemis Accords.

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India’s participation in the Artemis Accords and its implications for space exploration and utilization

• India has firmly backed a US-led alliance on space issues by joining the Accords, an alliance that presently and most certainly in the future would exclude Russia and China, two of the most significant spacefaring states.
• By signing the agreement, India can work with other countries, notably the United States, on upcoming Moon missions.
• This partnership makes it possible to share information and skills, advancing scientific inquiry, technological innovation, and the expansion of humanity’s presence in space.
• To create a viable and long-lasting presence on the Moon, cooperation with other nations is crucial to the deal.
• The journey to Mars, which would be the first time astronauts have visited the red planet, depends on its presence.

Benefits of signing Artemis Accords

• A lot of what India plans to do in space — human missions, moon landings, planetary explorations, setting up a space station — has already been done by countries like the US, Russia or China.
• The fact that India has not yet sent manned missions to space, or even landed a satellite on the moon, is not because of lack of capacity or expertise. It has a lot to do with the technology denial regime of the early years.

• Joining the US-led alliance is an attempt by India to leapfrog and start collaborating on the next generation of technologies, even as it pursues its own efforts to implement its space plans.

Concerns associated

• Russia has been India’s most trusted partner in the space sector, just like it has been in defence.
• Even recently, it was Russia that offered its facilities to train Indian astronauts for the Gaganyaan mission.
• Joining an alliance that is seen to be aimed at promoting US interests in space is not likely to be seen very favourably by Russia.
• Joining the alliance and seeking collaboration with other nations could potentially lead to overreliance on external technologies.
• As India aligns with the US-led alliance, there is a concern about the potential loss of autonomy and decision-making power in shaping its own space program.

Way forward and Conclusion

• India should proactively engage in diplomatic efforts to ensure smooth collaboration with other nations, including Russia.
• India should actively engage with other member nations of the alliance and seek opportunities for collaboration in space exploration.
• Balancing collaboration with maintaining independence and pursuing national objectives becomes crucial to ensure that India’s space exploration plans are not dictated solely by the priorities of the alliance.
• Ensuring equitable participation, resource sharing, and decision-making processes will be crucial to address these concerns and ensure a fair and inclusive alliance.
• It is essential for India to strike a balance between its space exploration ambitions and addressing other critical needs such as poverty alleviation, healthcare, education, and infrastructure development.
• India should also continue pursuing its independent space goals, apart from such collaborations.
• By doing so, India can position itself as a key player in the global space arena and propel its space program to new heights.-re

Answer the following questions in 250 words(15 marks each):

General Studies – 1

6. It is important to note that the Indian Ocean Dipole (IOD) and El Niño are complex phenomena, and their interactions with the monsoon system can vary in intensity and spatial distribution from year to year. Analyse.

Reference: Indian Express

Introduction

The Indian Monsoon is expected to be influenced by the El Nino phenomenon in 2023, there are also anticipations of a positive Indian Ocean Dipole (IOD) developing, which could potentially offset the impact of El Nino.

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IOD and El nino interactions

• IOD, sometimes referred to as the Indian Nino, is similar to the El Nino phenomenon, occurring in the relatively smaller area of the Indian Ocean between the Indonesian and Malaysian coastline in the east and the African coastline near Somalia in the west.

• The El Nino is the warmer-than-normal phase of the El Nino Southern Oscillation (ENSO) phenomenon, during which there are generally warmer temperatures and less rainfall than normal in many regions of the world, including India.

• One side of the ocean, along the equator, gets warmer than the other.
• IOD is said to be positive when the western side of the Indian Ocean, near the Somalia coast, becomes warmer than the eastern Indian Ocean.
• It is negative when the western Indian Ocean is cooler.

Negative and positive IOD and El nino interaction

Negative

• The air circulation in the Indian Ocean basin moves from west to east, that is from the African coast towards the Indonesian islands, near the surface, and in the opposite direction at the upper levels. That means the surface waters in the Indian Ocean get pushed from west to east.

• In a normal year, warmer waters in the western Pacific near Indonesia cross over into the Indian Ocean and make that part of the Indian Ocean slightly warmer. That causes the air to rise and helps the prevailing air circulation.

• In the years when the air circulation becomes stronger, more warm surface waters from the African coast are pushed towards the Indonesian islands, making that region warmer than usual. This causes hotter air to rise, and the cycle reinforces itself.
• This is the state of negative IOD.

Positive

• Air circulation becomes slightly weaker than normal. In some rare cases, the air circulation even reverses direction. The consequence is that the African coast becomes warmer while the Indonesian coastline gets cooler.

• A positive IOD event is often seen developing at times of an El Nino, while a negative IOD is sometimes associated with La Nina.

• During El Nino, the Pacific side of Indonesia is cooler than normal because of which the Indian Ocean side also gets cooler. That helps the development of a positive IOD.

Impact

• In the Indian Ocean, IOD exhibits an ocean-atmosphere interaction that closely resembles the fluctuations observed during El Niño events in the Pacific Ocean. However, the IOD is considerably less powerful compared to El Niño, resulting in relatively minimal impacts.
• A positive IOD helps rainfall along the African coastline and also over the Indian sub-continent while suppressing rainfall over Indonesia, southeast Asia and Australia. The impacts are opposite during a negative IOD event

Conclusion

Hence, even in an el nino year, a positive IOD will offset the effects of EL Nino and bring normal monsoon to India, thereby maintaining the rainfed agriculture of this country.

General Studies – 2

7. What are Multilateral Development Banks (MDBs)? India needs to actively engage with MDBs to address key development challenges, promote sustainable development, and harness the resources and expertise of these institutions for India’s benefit. Analyse.

Reference: Indian Express

Introduction

Multilateral development banks (MDBs) are financial institutions that provide loans, grants and technical assistance to developing countries for their economic and social development. MDBs include the World Bank Group, the Asian Development Bank, the African Development Bank the Inter-American Development Bank, etc. MDBs have been instrumental in supporting the development of both low-income and middle-income countries (LICs and MICs) by addressing issues such as poverty reduction, infrastructure development, human capital formation, etc.

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Role of Multilateral Development Banks

• Supporting the Implementation of the SDGs:
• The SDGs(sustainable development goals) are a set of 17 global goals that aim to end poverty, protect the planet and ensure peace and prosperity for all.
• MDBs can help developing countries align their national policies and strategies with the SDGs, mobilize resources and partnerships, monitor and evaluate progress, and address gaps and challenges.
• MDBs can also support cross-cutting issues such as gender equality, human rights, governance, etc., that are essential for achieving the SDGs.
• Provide Concessional Finance and Grants:
• Providing concessional finance and grants to
• Low-income countries (LICs) and fragile and conflict-affected states (FCS) face multiple challenges such as low growth, high debt, weak institutions, social unrest, violence,, that hinder their development prospects and increase their vulnerability to shocks.
• MDBs can provide concessional loans and grants to these countries to help them meet their basic needs, build resilience, promote stability, and foster economic transformation.
• MDBs can also leverage their convening power and influence to mobilize additional support from other donors and partners for LICs and FCS.
• Promoting Inclusive Growth and Shared Prosperity:
• Middle-income countries (MICs) are a diverse group of countries that have achieved significant progress in reducing poverty but still face persistent inequalities and social exclusion.
• MDBs can help MICs address these challenges by supporting policies and programs that enhance productivity, competitiveness, innovation, diversification,, as well as those that improve access to quality education, health, social protection, infrastructure, etc., for all segments of society.
• MDBs can also help MICs tackle emerging issues such as climate change, urbanization, digitalization, etc., that have implications for their development trajectories

India and its engagement with MDB’s

• India, as a leader and partner of the Global South, has a stake and a role in shaping the reforms of MDBs to make them more responsive and effective in addressing these issues and opportunities.
• India is also a major borrower and beneficiary of MDBs, especially the World Bank Group and the Asian Development Bank.
• India has received loans and grants from these institutions for various sectors such as infrastructure, health, education, agriculture, etc.
• India is also a contributor and shareholder of MDBs.
• India has provided capital and resources to these institutions to support their operations and lending capacity.
• India has also participated in their governance and decision-making

Reforms needed

• The current legal and institutional framework of MDBs is outdated and inadequate to deal with the rapid changes and complexities of the digital ecosystem.
• The current framework was established after World War II to address the post-war reconstruction and development needs of the less developed countries.
• The current framework does not reflect the contemporary realities and aspirations of the developing countries, especially those of the Global South.
• To Enhance their Relevance and Performance in Supporting Developing Countries:
• The current operation strategies and business models of MDBs are not optimal for meeting the diverse and evolving needs of developing countries in pursuing inclusive and sustainable development.
• The current strategies and models do not leverage the full potential of MDBs to mobilize resources and partnerships, foster policy dialogue and alignment, monitor and evaluate progress, and address gaps and challenges.
• The current strategies and models do not diversify their portfolio of instruments and modalities to provide tailored and flexible solutions for different contexts and sectors.
• The current strategies and models do not support innovation and technology transfer for development solutions, especially for adaptation and resilience.
• To Improve their Governance and Accountability:
• The current governance structure of MDBs is not representative and responsive to the needs and interests of their shareholders and stakeholders.
• The current structure does not reflect the changing balance of power and influence among developed and developing countries in the global economic order.
• The current structure does not ensure effective participation and voice of developing countries in decision-making processes.
• The current structure does not ensure transparency and disclosure of MDBs’ operations and impacts.

Conclusion and wayforward

• Reforming MDBs is a crucial and timely initiative that holds out the promise of not only upgrading the current legal regime but also redefining the contours of how technology is regulated in India.
• Reforming MDBs is likely to have far-reaching implications for the digital ecosystem and its stakeholders in terms of opportunities and challenges.
• Reforming MDBs requires extensive consultations and deliberations among various stakeholders to ensure that it is inclusive, participatory and future proof.
• India has a key role and responsibility in reforming MDBs to make them more relevant and effective for the development of the Global South.

8. To safeguard the integrity of a constitutional democracy, it is crucial to ensure that ordinances are used sparingly, in genuine emergencies, and that the normal legislative process is respected and upheld. Critically analyse.

Reference: Indian Express

Introduction

In a parliamentary democracy such as India, the ordinance promulgation power is supposed to be used as an exception and not as a matter of course. The constitutional scheme exists to ensure accountability of the political executive to the elected legislature.

The President of India exercised legislative power under Article 123 of the Constitution to promulgate The Government of National Capital Territory of Delhi (Amendment) Ordinance, 2023. The Ordinance negates a Constitution Bench judgment of the SC, that brought “services” under the Government of National Capital Territory of Delhi (NCTD).

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Ordinance making in India:

• Articles 123 and 213 of the Constitution
• These state that an ordinance may be promulgated to meet a certain circumstance, but must be laid before the legislature in question, and will expire within six weeks of the legislature being convened.
• An ordinance is thus, by definition, limited in time, and can cease to have effect even earlier, if the legislature passes a resolution disapproving the ordinance.

Misuse of ordinance making power:

• The very nature of the ordinance might mean that a frequent resort to it is only self-defeating
• Excessively used:
  • Following the washout of the second half of the budget session, three ordinances have recently been promulgated by the President.
  • First was the Criminal Law (Amendment) Ordinance, 2018 ,followed by the Fugitive Economic Offenders Ordinance, 2018,amendments to the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (henceforth Commercial Courts Act) were made through an ordinance. .
• Misuse of ordinance power has been questioned:-
  • Supreme Court acted on concerns about the manner in which the ordinance promulgating power has been used at the state level.
  • First, in limiting the manner in which ordinances may be repromulgated and second, in ensuring that ordinances cease to be in effect, if they are not placed before the legislature.
  • Without imposing any substantive limits on when an ordinance may be promulgated, the Supreme Court has restrained the government’s ordinance-making power(though somewhat belatedly).
• Self-limiting:
  • Validity and legality of actions taken on the basis of an ordinance will be in limbo,unless subsequent legislation is passed to the same effect by the legislature.
  • Overuse of ordinances goes fundamentally against two core tenets of the rule of law, stability and consistency
• Self defeating due to absence of Parliamentary scrutiny and feedback :-
  • Governments may favour the “ordinance route” because it makes for good optics or helps them avoid the difficult task of political negotiation in Lok sabha and Rajya sabha that is part and parcel of lawmaking.That, however, is a self-defeating exercise.
  • Taking the ordinance route may only raise suspicions about the government’s motives and harden the opposition’s standtowards a measure, as was seen with the proposed amendments to the land acquisition law.
• The executive’s power to issue ordinances, therefore, goes against separation of powers;for it acts neither as a check nor as a balance on the authority exercised by the other branches of government.
• Ordinances passed in haste are often ill-designed

Need for ordinance making

• It ought to be Power to legislate when Parliament is not in session.
  • When legislature is not in session: the President can only promulgate when either of the House of Parliament is not in session.
• Immediate action is needed:
  • The President though has the power of promulgating the ordinances but same cannot be done unless he is satisfied that there are circumstances that require him to take immediate action.
• Parliament should approve: after the ordinance has been passed it is required to be approved by the parliament within six weeks of reassembling. The same will cease to operate if disapproved by either House.
• During emergency

Way forward:

• Even if there is broad consensus that a certain legislative measure is needed, parliamentary scrutiny is valuable in and of itself.
• Reference to the standing committee and open debate about the merits of a bill and its drafting are likely to address shortcomings or oversights in the law.
• Ordinances are not immune from judicial challenge:
  • The Supreme Court, in Krishna Kumar Singh v. State of Bihar, made a series of pronouncements with potentially huge implications for the future of democratic governance in the country.
  • The case raised intricate constitutional questions concerning the executive’s power to make law through ordinance.

Value addition

Key highlights of the Government of NCTD (Amendment) Ordinance 2023:

• Creation of National Capital Civil Service Authority (NCCSA):
  • It will be headed by the CM of Delhi, with the Chief Secretary and Principal Home Secretary of Delhi being the other two members.
  • It will makerecommendations to the Lieutenant Governor (LG) regarding the transfer, posting, vigilance and other incidental matters wrt to AISs and DANICS serving the Delhi government.
  • All matters are required to be decided by a majority of votes. This means that the decision of the elected CM can be overruled by the two senior bureaucrats.
• Role of LG:
  • The L-G will pass orders to give effect to the recommendations passed by the NCCSA.
  • In case the L-G differs from the recommendation made, s/he may return the recommendation for reconsideration by the NCCSA. Therefore, the final decision will lie with the LG.

General Studies – 3

9. The Government of India has proposed draft rules for the Green Credit Programme. Discuss the implications of these draft rules and their potential impact on promoting green initiatives and sustainability in the country.

Reference: Down to Earth

Introduction

The Union Ministry of Environment, Forests and Climate Change has notified draft rules for ‘Green Credit’, an incentive that individuals, farmer-producer organisations (FPO), industries, rural and urban local bodies, among other stakeholders, will be able to earn for environment positive actions. The programme will incentivise individuals & organisations to take positive actions for the environment.

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About

• Under this, individuals, industries, FPOs, ULBs, gram panchayats and private sectors, etc., will be able to earn “green credit” for undertaking environment-friendly actions.
• The green credits will be tradableon a proposed domestic market platform.
• It follows the principle of LiFE– Lifestyle for Environment – to encourage sustainable lifestyles by driving consumers/communities towards behavioural changes to incentivise environment-friendly practices.

Features

By ‘green credit’, the government means a singular unit of an incentive provided for a specified activity, delivering a positive impact on the environment.

The activities include:

• Tree plantation-based green credit: To promote activities for increasing the green cover across the country through tree plantation and related activities
• Water-based green credit: To promote water conservation, water harvesting and water use efficiency / savings, including treatment and reuse of wastewater
• Sustainable agriculture-based green credit: To promote natural and regenerative agricultural practices and land restoration to improve productivity, soil health and nutritional value of food produced
• Waste management-based green credit: To promote sustainable and improved practices for waste management, including collection, segregation and treatment
• Air pollution reduction-based green credit: To promote measures for reducing air pollution and other pollution abatement activities
• Mangrove conservation and restoration-based green credit: To promote measures for conservation and restoration of mangroves
• Ecomark-based green credit: To encourage manufacturers to obtain ‘Ecomark’ label for their goods and services
• Sustainable building and infrastructure-based green credit: To encourage the construction of buildings and other infrastructure using sustainable technologies and materials

Potential impact of the draft rules on promoting green initiatives and sustainability in India

• It’s a first-of-its-kind instrument that seeks to value and reward multiple ecosystem services to allow green projects to achieve optimal returns beyond just carbon.
• The scheme will allow project proponents to also access carbon markets additionally.
• The guidelines bring together mechanisms to quantify and support ecosystem services together and would be of great help for organic farmers and FPOs.
• In some countries (France, Germany and Sweden), social services generate credits– taking care of the elderly for a certain number of hours, for instance, gets one some credit that you can exchange in a salon.

Concerns:

• The draft was a good statement of intent but its implementation would be extremely challenging.
• This is due to the difficulty in establishing the equivalence between various actions.
  • For example,how much water one saved is equivalent to a tonne of CO2 prevented from emissions is difficult to establish.
• Monitoring, reporting and verification challenges.
• A strong risk of greenwashing – the appearance of doing a lot without actually achieving much beneficial impact.

 Way ahead:

• Capacity needs to be builtto monitor these systems and prevent fraud.
• It will save resourcesthat could be diverted to more transformational pollution control and biodiversity protection efforts.
• It is imperative to consider unresolved forest ownership and governance rights, ecological and biodiversity challenges, and global critiques of carbon credit schemes.
• Methodology and the standards are robust and additional strategies that would create enough demand for the green credits for the viability and stability of the market needs to be ensured.
• There is a need for a careful assessment and implementation of the Green Credit System, particularly its focus on tree plantation and afforestation.

10. The Cabinet has approved the PM-PRANAM scheme to incentivize states in promoting alternative fertilizers. Examine the implications of this scheme and its potential impact on agricultural practices in India.

Reference: The Hindu

Introduction

PM-PRANAM or Prime Minister Promotion of Alternate Nutrients for Agriculture Management Yojana  was proposed during the National Conference on Agriculture for Rabi Campaign in September 2022.  Subsequently, it was announced in the budget for 2023-24, which reflects the government’s commitment to sustainable agricultural practices and the conservation of natural resources.

The union cabinet has given its approval to PM-PRANAM scheme, which aims to promote the usage of alternative fertilizers and balanced utilization of chemical fertilizers.

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Implications of the scheme

• Incentivizing States and UTs:The scheme incentivizes states and Union Territories to promote the usage of alternative fertilizers and achieve a balanced use of chemical fertilizers. States that demonstrate significant savings in funds due to reduced chemical fertilizer usage receive grants as incentives.
• Subsidy Savings Allocation:Around 50% of the subsidy savings resulting from reduced chemical fertilizer consumption will be allocated as a grant to the state that exhibits the highest savings. This encourages states to actively participate in the adoption of alternative fertilizers.
• Creation of Assets:A significant portion (70%) of the granted funds will be utilized for creating assets associated with the technological integration of alternate fertilizers. This includes establishing production units at the village, block, and district levels, facilitating local production and availability of alternative fertilizers.
• Recognition and Incentives for Farmers:The remaining 30% of the granted funds will be utilized to incentivize and recognize farmers and other village entities for their contributions to reducing fertilizer usage. This recognizes their efforts in adopting sustainable agricultural practices.
• Environmentally Friendly Farming Practices:The scheme aims to promote environmentally friendly farming practices by encouraging the adoption of alternative fertilizers. This reduces the dependency on chemical fertilizers, which in turn contributes to environmental conservation and sustainability.
• Technological Integration:The scheme supports the integration of technology into agriculture for the production and utilization of alternative fertilizers. This includes the establishment of production units at the grassroots level, encouraging local production and accessibility of alternative fertilizers.

potential impact on agricultural practices in India

• Due to increased demand for fertiliser in the country over the past 5 years, the overall expenditure by the government on subsidy has also increased.
• In the Union Budget 2021-22, the government had budgeted an amount of Rs 79,530 crore, which increased to Rs 1.40 lakh crore in the revised estimates (RE). However, the final figure of fertiliser subsidy touched Rs 1.62 lakh crore in 2021-22
• By promoting a balanced use of fertilizers, the scheme ensures the long-term health and fertility of agricultural ecosystems.
• It emphasizes sustainable agricultural practices that preserve soil health and protect natural resources.
• This programme will help in stopping the overuse of chemical fertilisers and in reducing chemical fertiliser use by using substitute fertilisers such as organic fertilisers, city compost, bio fertilisers, zymes, SSP, and PROM etc.
• Encourage the balanced use of fertilizers in conjunction with biofertilizers, organic fertilizers.
• Reduce the subsidy burden on chemical fertilizers, which was around Rs 2.25 lakh crores in 2022-2023.
• Additionally, this will also help in administering the sufficient nutrients to the soil and enhancing soil health, allowing farmers to produce more crops.

Conclusion

Indian government is taking various initiatives not only to reduce subsidy burden but also to make fertiliser available to the Indian farmers at affordable price and to increase their crop productivity as well. Thus, PM-PRANAM would help in balancing the soil quality and ensuring the right NPK ratio.

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