SECTION-I

MAINS

 

HOW CAN INDIA USE THE DEMOGRAPHIC DIVIDEND, ITS GREATEST ASSET?

Paper GS-I/II

Context: If the nation makes the most of its advantageous demographic makeup, the next 25 years might be its golden years.

The demographic dividend is the potential for increased economic development brought on by changes in the age structure of a population, particularly when the proportion of people who are working-age is higher than that of those who are not. (UNFPA)

The demographic dividend in India:

  • The average age in India is 29, compared to 38, 38, 42, 45, and 48 years in the US, China, France, Germany, and Japan, respectively.

India is the most populated nation in the world, making it the youngest.

Implications:

  • India is now seeing a rise in the population of working age and a decline in the dependence rate among the elderly.
  • For instance, the proportion of elderly people in India will reach 37% in 2075, compared to 56% in France, 75% in Japan, 49% in the US, etc.

A success story

  • Today’s majority of industrialised nations have been successful in using their advantageous demographic phase for increased development and level of life.
  • By using its demographic dividend from the early 1980s through 2008–2009, China has already shown what it means to be a superpower.
  • In a similar way, by designing structural changes to take advantage of their demographic dividend, Japan (between the mid-50s and late 80s), South Korea (from the early 90s till 2015), Malaysia, and Singapore have all shown continuous development.

Why has China been successful?

China saw an unparalleled average annual growth rate of about 10% over the course of four decades as a consequence of its early emphasis on labor-intensive industry and later structural restructuring.

Opportunities exist for India since the work force is contracting and most nations are experiencing record low fertility rates (6.77 births per 1,000 people in China).

How should India proceed?

  • Put an emphasis on providing the workforce with great training opportunities to improve their productivity and efficiency.
  • By increasing their productivity, employers can provide opportunities for both the work force that already exists and the newcomers to the labour market.
  • Reposition a significant portion of the 45.5% of the work force that is employed in agriculture, where labour productivity is poor and nonexistent.
  • Given that the majority of the labour force has minimal education and skill sets, concentrate on labor-intensive manufacturing such as textiles, toys, footwear, auto components, sporting products, and agricultural processing.
  • Benefit from industries with tremendous potential, such as hospitality, mining, construction, and the provision of medical care.
  • India has to intensify its attention on the following for the manufacturing sector to expand:

o Developing infrastructure to lower trade and transaction costs,

o Measures to facilitate trade,

o An improved IPR environment;

o The simplicity of doing business locally, and

o Further rationalisation of taxes and labour rules.

o MSMEs, the backbone of Indian manufacturing, need assistance in order to increase their competitiveness, achieve scale, upgrade their technology, build digital infrastructure, and brand themselves in order to participate in broader supply networks and global value chains.

Actions taken:

  • Initiatives for skill development like the National Apprenticeship Promotion Scheme, the Pradhan Mantri Kaushal Vikas Yojana, and the Jan Shikshan Sansthan are to be applauded.

o From 2017 to 22 they boosted the availability of human resources across a range of industries.

  • The MSDE’s Vision 2025 intends to strengthen connections between formal education and skill development, spur demand for formal skills, and establish a high-skilled environment.
  • To a large degree, health equality has been guaranteed through Ayushman Bharat, Swachh Bharat Mission, and PM Bhartiya Janaushadhi Pariyojana.
  • As outlined in the UN SDGs 2030, upgrading knowledge, guaranteeing productive career options, and providing decent/dignified work are all given priority in the National Education Policy 2020.

At all stages of schooling, the Samagra Shiksha programme offers inclusive, egalitarian, and high-quality instruction.

Challenges:

  • The unorganised sector in India accounts for 93% of employment, and there, employees are often working in low-wage positions.
  • High out-of-pocket healthcare costs, subpar education, inoperable schools, uncooperative authorities, etc.

Future Course:

  • Increase labour force participation through increasing the workforce’s employability via extensive skill development.
  • Creating work options for the young people who join the labour force each year.
  • Expand the availability of high-quality health care to the vast majority of the people.
  • Delivering high-quality education to everyone up to the upper secondary level is essential for developing a work force that is productive.

India’s human capital is its greatest asset. If India accelerates reforms and achieves the expected outcomes of flagship projects like Skill India, Make in India, Start-up India, etc., it may serve as a supply of labour for the rest of the globe.

Origin: IE

 

PATI, SARPANCH.

GS Paper-II

The Supreme Court of India has ruled that the government, not the court, should solve the problem of males controlling elected women in local politics (also known as sarpanch Pati).

  • The court suggested that an NGO bring this issue up to the Ministry of Panchayati Raj.
  • The NGO said that, notwithstanding the one-third quota for women in panchayat governance imposed by the Seventy-third Constitution Amendment Act in 1992, unelected male relatives exercising political and decision-making authority behind elected women is a farce of constitutional democracy.

Regarding Sarpanch Pati

Sarpanch Pati, or spouses who exert authority in panchayats by forcing their women to compete, is a situation that is neither new nor uncommon. Even the Prime Minister has acknowledged the issue and recognised it as a barrier to women’s advancement.

Examples:

  • In one instance, a guy in Ratlam, Madhya Pradesh, even possessed a “power of attorney” paperwork that allowed him to act on behalf of the elected lady sarpanch whose election expenditures he had allegedly covered.
  • An Odisha woman sarpanch also “authorised” her husband to do her duties as sarpanch, claiming that she did not do so under duress but rather out of home duty.

Reasons for the Sarpanch Pati custom:

  • Masculine gender expectations
  • Lack of training and capacity development for women seeking leadership positions in local government.
  • The low social position of a lady who is illiterate to a high degree.
  • The lack of severe punishment legislation for males.
  • Lack of appreciation for the contributions made by women.

Prelims:

What does ‘Sarpanch Pati’ mean in the context of Indian society? Analyse the contributing causes and effects of this culture. (150 words)

Origin: TH

 

WHY HAS THE RUPEE GONE GLOBAL AND WHAT ARE THE ADVANTAGES?

GS Paper-III

Context: The RBI believes that the rupee has the potential to be an international currency since India continues to be one of the nations with the fastest economic growth and has impressive fortitude in the face of significant challenges.

What does the rupee’s internationalisation mean?

  • The process of “internationalisation” entails a rise in the usage of the rupee in cross-border trade between Indian citizens and foreigners.
  • It entails encouraging the use of the rupee for capital account transactions first, then for other current account operations and import and export commerce.
  • The top reserve currencies in the world right now are the US dollar, the Euro, the Japanese yen, and the pound sterling.
  • China’s attempts to make the yuan its official currency have so far had only patchy success.

The internationalisation of the currency, which is strongly related to the – are prerequisites.

  • The nation’s economic development.
  • The expansion of currency settlement, as well as a robust swap and FX market.
  • Complete currency convertibility on the capital account (enabling unrestricted transfer of domestic financial investment assets into foreign assets and vice versa);
  • Unrestricted cross-border financial transfers.

Present situation:

  • As of right present, India only permits complete convertibility on the current account.
  • A number of variables, including the size of the US economy, a track record of macroeconomic stability and currency convertibility, the absence of competitive alternatives, etc., are argued to support the claim that the US dollar has a “Exorbitant Privilege.”
  • The US dollar’s supremacy is clearly threatened by the Chinese renminbi. However, it will rely on the – whether it can compete with the US dollar.

o The Chinese financial system and economy must exhibit the same endurance;

o The US economy’s traits of integrity, transparency, openness, and stability.

The RBI suggests that:

Adoption of a uniform methodology for evaluating proposals for bilateral and multilateral trade agreements The addition of the rupee to the IMF’s SDR (special drawing rights)

The IMF designed the SDR as a global reserve asset to augment the official reserves of its member nations.

A basket of five currencies—the US dollar, the euro, the Chinese yuan, the Japanese yen, and the British pound sterling—serves as the basis for the SDR’s value.

Encouraging non-residents to create rupee accounts both within and outside of India

Integrating Indian payment systems with those of other nations for international trade

Creating a worldwide 24/5 rupee market and recalibrating the FPI (foreign portfolio investor) system to strengthen the financial market

Review of taxes on masala bonds (rupee-denominated bonds issued outside of India by Indian firms), global bond indices for Indian government bonds, and international Real Time Gross Settlement (RTGS) for cross-border trading transactions

These suggestions are important:

  • In light of the US imposing economic sanctions on Russia as retaliation for its invasion of Ukraine and the rising need for an alternative to the US dollar in international trade.
  • Reserves have an impact on the economy even if they assist control exchange rate volatility and portray external stability.

Benefits of the rupee’s internationalisation

  • By shielding Indian enterprises from currency volatility, cross-border transactions reduce their exposure to currency risk. As a result of
  • Lower business expenses and increase the potential for Indian companies to expand internationally.

o Strengthen the Indian economy and raise India’s standing and respect abroad.

  • The rupee’s internationalisation lessens the requirement to have foreign currency reserves.
  • India’s reliance on foreign currency will decline, making it less susceptible to outside shocks.

Challenges:

  • There is very little worldwide demand: India accounts for 2% of global commerce in goods, compared to the rupee’s daily average share of 1.6% in the world’s foreign currency market.
  • Given its huge current and capital account deficits, India does not enable complete capital account convertibility. This is owing to historical concerns about capital flight (the exodus of capital from India due to monetary policies/lack of growth) and currency rate volatility.

Changes required:

  • The rupee needs to be more easily convertible, with a target date of 2060.
  • The RBI should work to expand and liquefy the rupee bond market so that international investors and Indian trading partners have additional alternatives for rupee investments.
  • It should be promoted that Indian importers and exporters invoice their operations in rupees.
  • Currency exchange agreements would make it possible for India to conclude trade and investment deals (as with Sri Lanka).
  • Tax incentives for international companies to use the rupee in India would also be beneficial.
  • The recommendations made by the Tarapore Committees (in 1997 and 2006) must be implemented, including:

o An effort to get fiscal deficits under 3.5%;

  • A drop in the gross inflation rate to between 3% and 5%, and
  • A decrease to less than 5% in gross banking non-performing assets.

Prelims:

It is crucial to approach the internationalisation of the rupee thoughtfully, taking into account the benefits and hazards that might result from doing so. Examine critically.

 

 

SECTION-II

PRELIMS

 

ZO INHABITANTS OF MANIPUR AND MIZORAM

Given the ongoing ethnic conflict between the majority Meiteis and the Kuki-Zomi tribes in the adjoining state, several leaders have advocated for the reunion of the Zo people in light of the recent events in Manipur.

Tribes of Zo:

  • The Zo people are made up of a number of tribes that are dispersed across Myanmar, India, and Bangladesh, including the Chin, Kuki, Mizo, Lushei, Zomi, and others. The tribes are linked by their Christian beliefs and have a shared history that includes migration and settlement in various locations.
  • The campaign for Zo reunion has political obstacles in terms of carving off regions from Manipur, Tripura, and adjacent nations for integration with Mizoram, while being emotionally attractive to the people of Mizoram.

Origin: IE

 

CHATBOT FOR PEOPLE IN MENTAL DISTRESS

In order to assist those in need, India’s first Tele-MANAS chatbot has been introduced in Jammu and Kashmir (J&K).

  • The programme intends to provide clients 24/7 access to clinical psychologists, specialists, and health counsellors. The J&K Health Conclave on Mental Health and Non-Communicable Diseases was where the launch took place.

Tele-MANAS is under the Ministry of Health and Family Welfare.

  • State Tele MANAS cells, which contain qualified counsellors and mental health professionals, make up Tier 1.

Specialists from the District Mental Health Programme (DMHP)/Medical College resources and/or eSanjeevani are included in Tier 2 for physical and/or audiovisual consultation.

Origin: TH

 

INDEX OF FARMER DISTRESS

Background: The Central Research Institute for Dryland Agriculture (CRIDA) in India has created an original early warning system known as the “farmers’ distress index.”

Relevance of the index:

  • This index’s goal is to reduce agricultural hardship, such as crop failure, loss, and income shocks, which have increased farmer suicide rates.
  • The approach for the index is keeping an eye on regional newspapers, news websites, and social media for stories of concern, then calling small and marginal farms to conduct phone interviews to gauge early indications of distress using standardised questions.
  • If the distress is gender-based, the index enables targeted actions, such as a focus on raising women’s salaries.

Author: DTE

 

NEW SOURCE OF METHANE

According to a research published in Nature Geoscience, methane is being released into the atmosphere by groundwater springs in the Arctic as melting glaciers reveal these methane-rich springs.

  • The groundwater springs in the Arctic archipelago of Svalbard may release more than 2,000 tonnes of methane per year, which is equal to 10% of Norway’s oil and gas sector’s methane emissions.
  • The presence of methane in close proximity to shale rocks points to a geologic or thermogenic source of gas that rises via rock fissures and gathers under the glacier.

The release of methane from glacial groundwater springs is anticipated to rise as global warming continues and glaciers continue to recede, emphasising the need to evaluate the danger and consequences of these emissions.

Author: DTE

 

MICROPLASTICS

The environment, as well as the effects of microplastics and nanoplastics on human and animal gut microbiomes, are highlighted in a study from the Food and Agriculture Organisation (FAO).

Findings:

  • Intestinal inflammation and dysbiosis, which affect the gut microbiome and microbiota, have been linked to plastic exposure.
  • It is known that microplastics and nanoplastics may infiltrate the food chain and have an impact on soil microorganisms. These particles may have been discovered in human placenta, faeces, blood, and meconium, according to the available evidence.
  • The majority of the research in the paper show that exposure to microplastics causes changes in the host, such as modifications to gene markers, biochemical indicators, the mucus layer, intestinal permeability, oxidative stress, immunological response, and liver function.

Regarding microplastics

Microplastics are plastic granules with a diameter of less than 5 mm. They come in two varieties:

  • Primary Microplastics: These microscopic fibres shed from garments and other fabrics and are intended for commercial usage. g., plastic fibres, pellets, and microbeads found in personal care products.
  • Secondary microplastics: These are created when bigger plastics, including water bottles, break down.