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Read more about THE GIST of Editorial for UPSC Exams : 23 June 2020 (A case to exempt GST in Central Police Canteens (The Hindu))

THE GIST of Editorial for UPSC Exams : 23 June 2020 (A case to exempt GST in Central Police Canteens (The Hindu))

A case to exempt GST in Central Police Canteens (The Hindu)

Mains Paper 2:Governance
Prelims level: Central Armed Police Force
Mains level: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

Context:

Union Home Minister Amit Shah announced in early May that only indigenous products will be sold in all Central Police Canteens run by the Central Armed Police Force (CAPF).
This is a welcome step in keeping with Prime Minister Narendra Modi’s directive to promote indigenously manufactured products, or swadeshi products, in India.
As almost all products sold in CAPF canteens are indigenous, detailed instructions.......................

Canteen sales:

There are over 119 master canteens functioning as depots and 1,700 canteens running across the country catering to over 50 lakh family members of 10 lakh serving personnel.
the Central Police Canteen boasts of sales of over ₹2,800 crore worth of products annually.
Baba Ramdev’s Patanjali has already made inroads into these canteens with various products and is expected to expand.
The Khadi and Village Industries Commission is also channelising the sale of its products like textiles and uniform things through these canteens.
Non-exemption of GST on all products sold through canteens has been a sore point among the CAPF personnel.
The rates at which the products are sold at present in the canteens are marginally less than the market rates.
Exemption of GST will reduce the costs further making the products more easily affordable and lucrative.
The government has to pay serious attention to this aspect.

Paying VAT:

Before the GST came into effect, certain States had exempted the levy of VAT while many others, including Delhi, were reluctant to extend this benefit.
While VAT was exempted for all Canteen Stores Department items, the Central Police Canteens in most States had to continue paying VAT.
The authorities cannot ignore the fact that the CAPF is working in difficult conditions across the country at grave risk to their lives.

Conclusion:

While sale of indigenous products in CAPF canteens is a step in the right direction, the issue of ..........................

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Read more about THE GIST of Editorial for UPSC Exams : 23 June 2020 (A case to exempt GST in Central Police Canteens (The Hindu))

THE GIST of Editorial for UPSC Exams : 23 June 2020 (New-age mobility (Indian Express))

New-age mobility (Indian Express)

Mains Paper 3:Economy
Prelims level: Electric vehicles
Mains level: Improving transport system with sustainable development

Context:

Electric mobility is a definitive way to retain this pristine air without compromising functionality.
Continuing with the ICE (internal combustion engine) vehicles with the same alacrity as in the past may never enable us to see AQI of about 50 in Delhi and Mumbai.
A shift to electric mobility is imminent and long overdue in India just as the trends show for Europe, the UK, China and other countries.

Initiatives towards promoting electric vehicles:

There were indications of this shift at the recently concluded Delhi Auto Expo 2020.
Electric vehicles were the most photographed or Instagrammed stars of the show. A range of electric buses, commercial vehicles, cars, e-scooters and e-bikes were on display.
Electric buses are making an appearance in large cities, stimulated by the incentives available to municipal bodies.
People find the idea of an electric bus sans noise and pollution.......................

What is preventing electric cars from becoming the preferred option?

The most cited reason is the lack of charging infrastructure.
Our obligation to the Paris Agreement may fall short unless we make the transition to electric—big and swift.
We do have public chargers in most large cities in India.That’s because worldwide everyone charges their electric cars at home.
Recharging an electric vehicle is unlike refuelling an ICE car. It’s a fundamental behavioural change that needs to sink in.
The electric cars we buy come bundled with a home charging kit. It’s like your own private petrol pump.
The charger is installed next to the location where you park your car, whether your apartment is in a high-rise or an independent house. When we come back from work, plug the charger into our car and relax.
Our car will be charged in a few hours. New-generation electric cars in India have a real-world driving range of 275-375 km. And if your commute is largely within your city, you are completely sorted for the week.
A smart home charger can be controlled through a mobile app. This means you can switch the charger on and off from your living room and don’t need to physically reach out to the charging spot or the car.
The app also gives you the current state of charge, cost, range, ability to charge with discounted off-peak rates (if offered by your discom), total monthly consumption, etc.
Public chargers are typically required for emergency top-ups or intercity journeys.
Similarly, if we run low on charge within the city, we may find a public charger at a mall, a municipal public parking lot, a supermarket or even our workplace.
Operators like Tata Power, Fortum, etc, are putting up rapid chargers along highways, at malls, residential complexes, public parking lots, commercial complexes, etc.
However, setting up ubiquitous charging infrastructure needs collaboration between the automakers, utilities, end-users or the community and government agencies—supported by a policy framework.

What can we do to make a difference now?

Take an electric cab or bus:

Electric buses are being deployed on many routes these days by almost all city transport bodies. Similarly, there are a lot of options for e-cabs in all the big cities—Evera Cabs, BluSmart, Glyd, Lithium, Ryds, Meru and others. We will be comfortable, cocooned in silence and, more importantly, emission-free and guilt-free.

Encourage charging infrastructure:

Ask your municipality, organisation or RWA to put an EV charger in your premises. Have conversations with people who matter, the corporators, municipal officials, the society/RWA committee, etc.
A potential buyer will be comforted to see a charger in the vicinity and this can swing her buying decision.

Drive an EV:

We have some gorgeous EVs in India, and more are waiting in the wings. Promise to buy an electric car as your next purchase. There are a lot of incentives like deeply discounted or free registration, free toll, free parking or similar such.
Furthermore, an electric car is so much fun to drive—thrilling linear torque, no gears, noiseless operation, etc. Top that with low cost of running, low maintenance, low cost of ownership, and you have a winner on your hands.

Conclusion:

When we do buy an electric car. We have made a responsible choice.
We are driving with the ultimate badge of honour—a green number plate...............

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Read more about THE GIST of Editorial for UPSC Exams : 23 June 2020 (New-age mobility (Indian Express))

UPSC MAINS TOPIC WISE PAPER : International Relations

Read more about UPSC MAINS TOPIC WISE PAPER : International Relations

THE GIST of Editorial for UPSC Exams : 22 June 2020 (Fighting a double pandemic (The Hindu))

Fighting a double pandemic (The Hindu)

Mains Paper 1:Society
Prelims level: National Commission for Women
Mains level: Gender based violence and associated issues

Context:

Waking up to screams, angry shouting and the troubling sound of someone crashing into a wall, a table, a door.
This is the cruel reality of many children and young people across our Commonwealth.
Economies, institutions and social welfare sectors continue to buckleunder the strain of the unprecedented COVID-19 pandemic crisis.
During such times, there is a dangerous escalation in the risk to the millions of people caught in the clutchesof domestic and gender-based violence.

Emerging evidences:

Emerging evidence on the impact of essential lockdown measures and the economic fallout of the pandemic on gender-based and domestic violence, paints a frightening picture.
The crisis has led to an alarming escalation of violence in the home, with women bearing the brunt of the frustration and anger.
In some areas, there have been reports of women being prevented from seeing doctors, and female doctors being spat on while testing other women for COVID-19.
We are seeing surging numbers of emergency calls to helplines — with rises of anything between 25% and 300%.
We see dramatic increases in Internet searches for support for those affected by domestic violence, and higher numbers of domestic homicides.
These are extremely disturbing trends..............................

Barriers to care:

Experience teaches us that women tend often to be at a disadvantage during crises, epidemics and now this pandemic, and that domestic violence tends to increase.
In West Africa, 60% of total deaths in the 2014 Ebola virus outbreak were women. Following the Canterbury earthquake in New Zealand, there was a 53% rise in domestic violence.
In many cases this is because gender roles and harmful practices, including customs such as early and forced marriage, limit women’s access to health services.
Women do three times as much unpaid care work at home compared to men, and make up 70% of workers in the health and social care sectors. They are squarely in infection’s path.
During the present COVID-19 pandemic, mass school closures are tending to entrench learning gaps between girls and boys, and putting many more girls at risk of sexual exploitation, early pregnancy and early or forced marriage.
They also mean that children are unable to report abuse to a trusted teacher.
And with restrictions on home visits by police and health workers, violence shelters being converted into health facilities, and courts being forced to close, many victims may find themselves trapped and feeling abandoned.
Mitigating the devastating impacts of this hidden pandemic of domestic violence requires strong and concerted action.

Organisations at work:

The Commonwealth Secretariat is working alongside partner organisations on measures which will help our 54 member countries to stemthe rising tide of gender-based violence.
Meetings were held with counterpart organisations such as the Organisation Internationale de la Francophonie, the Pacific Islands Forum, the Council of Europe and the Community of Spanish Language Countries.
Outcome was we have explored collaboration and mechanisms to ensure that women are at the centre of post-COVID-19 recovery planning.
We will work with our respective members to implement policy responses and interventions to safeguard victims and those at risk.
These discussions allowed us to share concerns and ideas conveyed by our member governments, and to outline key considerations for the upcoming ministerial meetings being arranged by the Commonwealth.

Health systems link:

An important priority is the provision of basic health care to all individuals and communities free of charge at the point of delivery.
All evidence points to a clear link between weak health systems and vulnerabilities to domestic violence.
So urgent action needs to be taken to ensure that during this COVID-19 pandemic, victims of abuse are able to access the health care they need, including mental health services.

Make financially reliant:

It is also key that post COVID-19 strategies include dedicated funding and support for micro, small and medium sized businesses and the informal sector, which are predominantly led by women.
Many of whom need the assurance of financial independence to escape from dangerous domestic situations.
It is encouraging, in this regard, that throughout the Commonwealth, we already see evidence of renewed commitment and action to end violence against women and girls.
Much is being done in our member countries to keep domestic violence refuges open during the outbreak.
There are also examples of innovative partnerships with businesses and organisations to provide alternative locations for victims to use as shelters.
Some governments have been able to provide additional resourcing and funding to organisations supporting victims, so they can upscale operations and continue providing services in a safe manner.
Other useful innovations such as virtual hearings and legal advice, are allowing survivors to continue to access justice.

Key concerns:

What is clear from my meetings with officials and development leaders is the immense urgency of taking action to protect women and girls who are being abused, isolated, punched, kicked and even killed in their homes.
Sadly, children living in violent homes not only witness violence but may themselves suffer abuse.
Violence in the home is one of the most pervasive human rights challenges of our time.
Research from the Commonwealth project, The Economic Cost of Violence against Women and Girls: A Study of the Seychelles, carried out in 2019 before the pandemic, shows that gender-based violence leads to estimated costs of 4.625% of GDP.

Conclusion:

The Commonwealth collectively stands ready to bring the power of its advocacy and support to the planned UN Declaration on Women and COVID-19.
We are increasing our ongoing advocacy through a range of initiatives, including ..................

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Read more about THE GIST of Editorial for UPSC Exams : 22 June 2020 (Fighting a double pandemic (The Hindu))

THE GIST of Editorial for UPSC Exams : 22 June 2020 (Reforms push to coal is justified (The Hindu))

Reforms push to coal is justified (The Hindu)

Mains Paper 3:Economy
Prelims level: Coking coal
Mains level: End of captive mining in coal production

Context:

The Prime Minister announced the auction of 41 coal blocks.
To virtually anyone who might be interested with the government having removed end-use restrictions and relaxed prior mining experience as bidding criteria.
This is a watershed effort to break the public sector monopoly on coal production, the enabling legal changes have been made over time.

Background:

The focus on self-sufficiency in this sector is justified; India imported 243 million tonnes of coal in 2019-20, about a third of its domestic output of 729 million tonnes, of which Coal India accounted for 602 million tonnes.
Imports will only rise as the economy returns to its growth potential. Of these imports, high-grade metallurgical coal (or coking coal) used for making steel accounts for 50 million tonnes annually.
Coking coal is scarce in India; most of the remaining imported coal can be substituted by domestic mining.
The Centre has said that commercial mining can save ₹30,000 crore in coal imports, or about a sixth of India’s coal import bill.
The move is expected to draw in an investment of ₹30,000 crore.....................

End captive mining:

The move to virtually end ‘captive mining’, or the allotment of mining rights only to those who directly use the coal as an input rather than trade in it, is justified.
Captive mining of small blocks, a decontrol move that was initiated in 1993 and continued right up to the coal scam, has been an inefficient process.
CIL has continued to account for well over 80 per cent of total output while being unable to meet the needs of input industries.
The cancellation of the 204 captive mining licences and the reallotment of 89 of them has not helped ramp up output either.
Commercial miningis likely to spur output in the medium term (assuming that private players will make a difference in five years), and provide some competition to CIL.
It should spur CIL to ramp up its efficiency in summer months to deal with the coal shortage that typically sets in after the monsoon, leading to power plants tripping up on output.
Experts estimate that there is considerable scope for CIL to ramp up its output by 15 per cent in the summer months.
Given the current role of thermal power in the energy mix, additional coal output and imports would be needed.
The key issue is whether the rise of renewables can temper coal demand — as indeed it should.

Conclusion:

India’s coal push should not undermine its achievements in renewables. Coal gasification is an idea whose environmental effects are uncertain.
The impact of coal in terms of forest loss and air pollution (to get worse if unwashed coal is used) cannot be discounted in the context of climate change.

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Read more about THE GIST of Editorial for UPSC Exams : 22 June 2020 (Reforms push to coal is justified (The Hindu))

THE GIST of Editorial for UPSC Exams : 22 June 2020 (Tale of two flawed agri ordinances (The Hindu))

Tale of two flawed agri ordinances (The Hindu)

Mains Paper 3:Economy
Prelims level: Farmers Producer Organisation
Mains level: Criticism of APMC Act and role of FPOs

Context:

Agricultural market reforms have been on the agenda of many Union governments, including the present one.
However, they were so far being attempted more by nudging and persuading the States, being a State subject. But the NDA government has, after trying the same approach, concluded that States cannot be pushed beyond a point. Therefore, it has taken the ordinance route.
The stated purpose is to create ‘one nation one market’, and provide farmers with the choice to sell their produce for better price discovery, and also to attract private investment in the agricultural market.
There are major aspects of the two major ordinances that deal with regulation and promotion of agricultural produce markets.

Trade and commerce:

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, shifts the domain from the State to the Centre.
It intends to promote efficient, transparent and barrier-free inter- and intra-State trade of farmer produce outside the physical premises of markets or deemed markets notified under various State agricultural produce marketing legislations, and to provide a facilitative framework for electronic trading.
Like the Agricultural Produce and Livestock Market (APLM) Act, 2017, this Ordinance defines a trader to include ‘agent’.
It is common knowledge that traders take titles to goods......................

Status and role of FPOs:

On the positive side, the Ordinance provides for the establishment of e-markets by farmer producer organisations (FPOs), though one is not sure how many can make use of this opportunity, given their poor capital and professional resources. This is similar to the State APMCs allowing private wholesale markets being set up by such collectives.
The Ordinance defines a farmer as a person engaged in the production of crops by self or hired labour or otherwise; this definition includes the FPO.
It is important to note that no FPO is involved in farm production; most are into pre- and post-production aggregation, trading and value addition.
The FPOs are also not defined as buyers, while cooperatives and co-operative societies are. This is problematic, especially for FPOs.

Agricultural transaction:

The Ordinance defines a transaction between traders, both within and across States,as one pertaining to ‘farmers’ produce’.
How can this be justified, as once the primary transaction is completed, it stops being farmers’ produce?
This is akin to the FPOs asking for exemption from income tax arguing that since they deal with the produce of their member-farmers, who are exempt from paying income tax, the FPOs should also be accorded the same exemption.

Regulation and role of States:

The Ordinance attempts to regulate traders undertaking intra- and inter-State trade by mandating the use of PAN and electronic registration of a trade, besides directing that payments be made within 1-3 days.
In case they are not, it imposes penalties of ₹25,000-5 lakh, with an additional ₹5,000 per day for physical trade (in case of the electronic platform, the penalties range from ₹50,000-₹10 lakh, plus an additional ₹10,000 per day). But the fact that it only provides for Central regulation of e-markets, and not all transactions, is difficult to justify.
The Ordinance still goes by State APMC-notified produce to define scheduled farmer produce.
What is the relevance of APMC-notified produce here, when its domain is reduced only to the market yards? This leaves a part of the larger agricultural produce market unregulated, despite existing Acts.

Contract farming:

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020, is nothing but a badly designed contract farming law.
The use of the term ‘farming agreement’ itself is unusual, as it can be confused with other arrangements like share-cropping or leasing.
Contract farming is about contract first, with farming being a part of it.

Direct purchase:

The way it is defined, the Ordinance also includes direct purchase, which is not the appropriate transaction under this ordinance.
One indication that direct purchase is a part of this Ordinance is the fact that large retailers are mentioned as contracting parties.
In both global and Indian contexts, large retailers or supermarkets don’t have contract agreements with farmers, and buy directly without any prior price commitment.
Although it is desirable that they sign an agreement, under this Ordinance a written contract is not mandatory. This shows a lack of appreciation for the concept of contract farming.

The definition of an FPO:

Here, too, the definition of an FPO as a farmer is not correct.
There are many FPOs in India which undertake contract farming directly or indirectly with their members and non-member farmers, like in seed production.
So, clubbing them with farmers is not appropriate. They are ..............

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Poor design of contract:

The very basic aspects of contract farming like acreage, quantity, and time of delivery are not specified, which is a must for any regulatory law as these are mandatory aspects of such an arrangement, whether by the supply of inputs or otherwise.
On the other hand, the farm-gate pick-up of produce by buyers has been made mandatory, which was unnecessary.
The parties should be able to decide themselves whether the farmer will deliver the produce at factory gate, collection centre, or whether the buyer would pick up the produce from the farm.
The Ordinance also leaves out many sophisticated aspects of modern contract farming practices, like contract cancellation clauses; delayed deliveries or purchases, and damage therein; and ‘tournaments’ in contract farming, where farmers compete with each other and are paid on relative performance, a practice which is banned in many countries.

Act as Anti-contract farming:

The Act links the contract price with the APMC mandi price or electronic market price, which is anti-contract farming in nature.
The price, like many other basic aspects of contract, should be left to the parties to negotiate and shouldn’t be tied to any other channel — especially the APMC price, as the very rationale for bringing this law was to provide alternative channels to farmers and create competition in APMC markets, as price discovery was not efficient.
Now, going back to the same mandi does not speak very well of the Ordinance.

Regulation or facilitation:

Unlike the Trade and Commerce Ordinance, this Ordinance does not specify any penalties for any violations of the contract provisions, which is surprising to say the least.
Rather, it facilitates and promotes and facilitates the contract farming mechanism in lieu of regulating it.
The Act goes all the way to facilitate contract farming is clear from the fact that it mentions that the stock limits law (ESA Ordinance) would not apply to contract-farmed produce.

Conclusion:

The aspects of ‘farmer empowerment’ and ‘protection’, mentioned in the title of the Ordinance, have been given a go by in its contents.
The proof of any law is in its implementation, but as far as farmer interest protection is concerned...............

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Read more about THE GIST of Editorial for UPSC Exams : 22 June 2020 (Tale of two flawed agri ordinances (The Hindu))

THE GIST of Editorial for UPSC Exams : 22 June 2020 (RBI’s new paper places too much onus on bank boards to ensure good governance(The Hindu))

RBI’s new paper places too much onus on bank boards to ensure good governance(The Hindu)

Mains Paper 3:Economy
Prelims level: Not much
Mains level: Measures suggested by the RBI for new standards of governance at banks

Context:

The Reserve Bank of India has put out a discussion paper to flesh out the governance structure at commercial banks and institute new checks and balances on their business, compliance and risk management functions.
Taking the view that being in the financial intermediation business makes a bank accountable not just to its shareholders but also depositors.
The RBI is seeking to put the onus of governance mainly on bank boards and their senior management teams.
This paper recommends the ideal composition of bank boards, sets hard.........

Recommendations:

To ensure that bank employees cutting across hierarchy are aware of their priorities, the paper proposes that boards set the ‘tone at the top’ for correct behaviour and formulate written policies on code of conduct.
A top-down approach is in order, written codes have proved hardly any deterrent to misbehaviour in the past.
The more concrete prescriptions are those requiring board members to disclose conflicts of interest upfront and to refrain from related party dealings, except where they can prove arm’s length.
Specifying that the chairpersons on bank boards be independent directors, and that top managers from the risk and compliance functions report directly to the board instead of the CEO, are good steps to ensure that they are not hijacked by profit motives.
But based on the YES Bank débâcle, the RBI also appears to be correlating weak bank governance directly with CEO tenure.
It has proposed a maximum tenure of 10 years for promoters functioning as bank CEOs and 15 years for professionals in this role. The link however is quite tenuous, with many well-governed banks (Kotak Mahindra Bank and HDFC Bank, for instance) featuring CEOs with long tenures.
If a 10-year limit is deemed essential to prevent excessive concentration of power in the promoter-CEO, it isn’t clear why a professional CEO must be allowed 15 years.
This proposal reflects the RBI’s lack of policy clarity on whether higher promoter skin-in-the-game or professional management leads to better governance.

Shifting supervisory responsibilities for good governance:

Overall, there’s also the question of whether the RBI is attempting to shift too much of its own supervisory responsibilities for good governance on to bank boards.
The bank’s Nomination and Remuneration committee is now expected to vet its directors and prospective CEOs for ‘fit and proper’ criteria and the Audit Committee is expected to oversee vigilance functions.
While insisting on some accountability from boards is welcome, stretching the concept too far can lead to conscientious individuals shying away from taking up board positions.

Conclusion:

Apart from attempts to tone up internal governance.................

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Read more about THE GIST of Editorial for UPSC Exams : 22 June 2020 (RBI’s new paper places too much onus on bank boards to ensure good governance(The Hindu))

THE GIST of Editorial for UPSC Exams : 22 June 2020 (Universalise food entitlements to avert hunger and aid growth (Mint))

Universalise food entitlements to avert hunger and aid growth (Mint)

Mains Paper 2:National
Prelims level: National Food Security Act
Mains level: Public Distribution System- objectives, functioning, limitations, revamping; issues of bufferstocks and food security

Context:

It is difficult to predict the precise impact of the lockdown on the Indian economy.
However, data released last week suggests that the lives and livelihoods of people are likely to be much more severely hurt than hitherto believed. Much of this data is based on a partial collection of statistics.
Still, it is sufficient to show a sharp contraction in industrial activity during the lockdown.
Considering that the economy was already on a downtrend before the covid crisis, with quarterly growth rates slowing down sharply, a recovery will be slow and painful.
This necessitates interim measures to protect the lives and livelihoods of the millions who have been rendered jobless and have returned home.
The least that is needed is the provision of food and supplementary income to help them sustain themselves until the Indian economy recovers.

Challenges towards economic revival:

India’s enhanced budgetary allocation for the Mahatma Gandhi National Rural Employment Guarantee Act will help some of them get work and earn some money.
However, it is hardly sufficient to boost demand and effect an economic revival.
The second challenge is to make food available at subsidized prices until the next harvest, which is at least five months away.
Allocations in Public Distribution System:
Union government had increased allocations ..........................

Challenges:

Also, the scheme leaves out millions of families. These are not necessarily households that aren’t poor, even though they may have been excluded from the priority criteria of the NFSA.
Since the identification of who is eligible has been done on the basis of data that is almost a decade old, it might exclude many who have either been rendered jobless in the course of the economic slowdown or later during the lockdown.
Unfortunately, at a time when even elementary data collection is difficult, there is no way to identify those not on the NFSA list who may need a food subsidy because of their changed circumstances.
There are also several others who have failed to get their entitled food supplies due to technical and administrative hurdles.
With the “one nation, one ration card" plan unlikely to be fully implemented before next year, the risk of a large chunk of beneficiaries losing out on their official entitlements is high.
The only way out is to make the PDS universal at least for the next six months.

Way ahead:

Our highest-ever foodgrain stocks are a result of record procurement of both wheat and rice, at almost one-third of the country’s total production. But it also implies that the available stock with the public is lower than what is actually available. This stockpiling is likely to create an artificial scarcity of foodgrains in the market.
At a time when there are signals of rising food inflation at the retail level, adding to stocks is only going to put more upward pressure on prices.
Releasing foodgrains by universalizing the PDS for six months will not only reduce these stocks, but also boost demand in the economy by increasing the disposal income of households that are struggling.

Conclusion:

It is rarely the case that misdeeds of the past appear as a boon.
This is one such rare occasion.
Food stocks accumulated over the years can now be used to provide relief to millions of ..........................

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Read more about THE GIST of Editorial for UPSC Exams : 22 June 2020 (Universalise food entitlements to avert hunger and aid growth (Mint))

THE GIST of Editorial for UPSC Exams : 20 June 2020 (Skilled response (Financial Express))

Skilled response (Financial Express)

Mains Paper 3:Economy
Prelims level: National Skill Development Corporation
Mains level: Indian Economy and issues relating todevelopment and employment

Context:

Covid-19 continues to ravage lives and destroy economies, causing disruption that will change the world forever.
In India, this has resulted in extreme narratives.
On the one hand, are those that see untold devastation of its economy, on the other are those who believe it is India’s moment to achieve its destiny.

Re-ignite growth:

A key factor of production to re-ignite growth in the economy from the current deep spiral inflicted by demand and supply shocks is going to be the workforce, not just as an input factor but also as an engine of demand.
The extent India benefits from an imminent shake-up of global supply chains and economic order will also be determined by how well it manages its workforce.
With limited natural resources, infrastructural constraints, exhausting red tape, and a burgeoning population, India’s principal resource are its people.
Therefore, India’s economy sits on the threshold......................

Is it staring at an abyss or looking towards its zenith?

With around 10-12 million youth entering the workforce every year and many more millions now rendered unemployed, are we heading to social unrest and national despondency, or are we going to leverage this to emerge as an economic powerhouse.
Can we make labour available where it is required? Can the workforce be suitably skilled to participate in gainful economic activity?
This is easier said than done primarily because most jobs are available in geographies far removed from where the labour primarily comes from.

Relook at its manufacturing strategy:

India needs to relook at its manufacturing strategy, maybe get an updated one.
The ‘Make in India’ plan seems to have made no noticeable change to the share of manufacturing’s contribution to India’s GDP (15.07% in 2014 to 15.4% in 2020).
Cluster-based industrialisation, a model well proven by late industrialisers such as China, needs a new vigour.
India needs to allocate more funds to cluster development. It needs to facilitate technology, skills, market development and integrate the MSMEs with the formal credit process.

Readying an employable workforce:

Readying an employable workforce is a crucial element of this effort.
This is best achieved when skilling is decentralised to the states which can then work with district industry centres and with local industry associations.
This will create demand-led skilling opportunities.
While the National Skill Development Corporation (NSDC)................................

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Jointly fund the skilling programs:

Labour receiving states could work with labour supplying states for an arrangement where both parties jointly fund the skilling programs.
The receiving states could determine the training modules, with a part done in the home state and the rest on the job.
This will create a win-win situation and will allow industrial centres to get a well-trained workforce. Meanwhile, they can be committed to improving working conditions.
This will allow better management of migrant labour, reducing hardships and protecting their rights and benefits.

Create local industry:

Manpower supplying states shouldn’t waste the current crisis and must create a local industry.
They could begin by focusing on urbanisation in small towns with the creation of manufacturing clusters for labour-intensive sectors such as food processing, wood manufacturing, apparel and any other sector in which the geography enjoys comparative advantage.

Localisation of skilling centres:

The skilling centres should be located in these small towns.
Such centres will facilitate industry engagement with skilling activities, which will lead to demand-led skilling programs.
Such clusters will allow greater participation of women in the workforce.
Minimising migration will lower the cost of living for the workforce, besides becoming a lower input cost for industrial units setting up in manpower supplying states.

Creation of opportunities in India and abroad:

The government could consider incentivising industry for their support and contribution towards skilling and vocational education.
It should strengthen the Unnati scheme that provides MGNREGA beneficiaries 100 days of training to obtain new skills.
Another opportunity that exists for India’s unemployed youth is a job opportunity in select nations abroad.
After the successful start of the Indo-Japan Technical Intern Training Program, it is a model worth emulating.
In other countries, too, there exist opportunities for Indian youth in multiple trades.
Besides the current health crisis creating a great demand for healthcare professionals, in many other trades too, India has the advantage of skilling its youth for the global market.

Way ahead:

To achieve sustained high rates of growth during the coming decades, India needs to harness its workforce.
With the large supply, there is much to leverage. Need of the hour, clearly, is to connect the workforce to livelihood, jobs, self-employment and entrepreneurship.
Creating an environment where more self-employed and entrepreneurs can flourish.....................

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Read more about THE GIST of Editorial for UPSC Exams : 20 June 2020 (Skilled response (Financial Express))

THE GIST of Editorial for UPSC Exams : 20 June 2020 (The health-tech edge(Financial Express))

The health-tech edge (Financial Express)

Mains Paper 2:Health
Prelims level: Health start-up
Mains level: Describe the role of tech start-up to build public healthcare infrastructure

Context:

Covid-19 has exposed the gaps in public healthcare infrastructure and human resources, if this hadn’t already been obvious.
Even metros like Delhi and Mumbai, the disaster that awaits the country if the pandemic spreads widely in the rural areas isn’t hard to imagine.

Reason behind to build health start-up:

Uttar Pradesh, for instance, has just 4 doctors for 10,000 population, against the national average of 7 per 10,000 population.
Against such a backdrop, it is fortunate that India has a thriving nursery of health-tech start-ups, most of which seem tailored to bridging the gaps between demand and supply of healthcare infrastructure and personnel.
Not only have health start-ups been able to bolster India’s stock of PPEs, N95 masks, ventilators, even 3D-printed face-shields, etc, many health-tech ones are helping crucial hospital functions to reduce human-to-human contact.
The Centre, states and even municipalities—to beef up healthcare capacity on its own, it needs to partner with start-ups and help scale up innovations, whether from the private or the public sector.
Karnataka and Rajasthan seem to be .............................................

Examples:

Kerala-based start-up Asimov Robotics has created a self-sanitising robot that can deliver food, sterilised equipment, ingestibles at the bed-side in hospitals, reducing pressure on healthcare-workers.
Janitri, founded in 2017, has monitored 27,000 pregnancies across 100 healthcare facilities in the two states with two offerings, Daksh and Keyar—the former is a tablet-based intelligent labour-monitoring tool while the latter is a wearable fetal heart-rate and uterine contraction monitoring device.
Both products improve efficiency and ease of monitoring, given they erase the need for bulky, non-transportable machines, human error in data monitoring and entry, etc.
Niramai, a Bengaluru-based health analytics company, has developed a non-invasive technique to detect breast cancer which uses heat signatures to determine if cancer exists—now, the same technology has been repurposed for real-time body-temperature-monitoring for large groups.
5C Network, another Bengaluru-based start-up, makes consultation from a panel of expert radiologists available remotely, by facilitating direct uploads of radiological scans from hospitals and diagnostic centres on to its portal.
Teleradiology, in a country that has just 1 radiologist per 100,000 population, could prove transformational, especially in rural areas.

Way forward:

While the Centre has conducted/sponsored hackathons for targeted solutions for Covid-related issues, the engagement with health-tech start-ups has to go beyond such sporadic support.
State/local governments need to map the delivery-gaps in public healthcare, whether because of a lack of infrastructure or personnel, and engage start-ups that are offering solutions to these problems.
Only with such backing from the government can there be meaningful scaling up ..............................

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