20th September 2024

Article: 20^th September, 2024

Topic: Economic Performance of Indian States

Relevance: GS Paper: 3 – Economy

Source: Hindustan Times

Context

The Economic Advisory Council to the Prime Minister (EAC-PM) has released a paper titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24.”

About

• It uses two indicators to compare the economic performance of the states over the last 65 years: the share of each state’s GDP in India and the relative per capita income.
• The Gross State Domestic Product (GSDP) of each state is divided by the total GSDP of all the states to determine the state’s contribution to India’s GDP.
• The ratio of a state’s per capita Net State Domestic Product (NSDP) to the per capita Net National Product for all of India is used to compute relative per capita income.
• The Ministry of Statistics and Program Implementation (MoSPI) is the source of the information.

Key Findings

• Southern states: Prior to 1991, their performance was below expectations. Nonetheless, the southern states have become the top performers since economic liberalization in 1991.
  – Together, Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu accounted for about 30% of India’s GDP in 2023–2024.
  – Furthermore, after 1991, the per capita income of every state in the South exceeded the national average.
• Western states: For practically the entire time, Maharashtra has held the largest percentage of India’s GDP.
  – The share of Gujarat started to rise quickly, rising from 6.4 percent in 2000–01 to 8.1 percent in 2022–2023.
  – Since the 1960s, the per capita incomes of Gujarat and Maharashtra have both exceeded the national average.
• With its relative per capita income more than doubling between 1970 and 1971, Goa has excelled in terms of per capita income.
• Northern States: Punjab’s economy declined after 1991, but Delhi and Haryana have done noticeably well.
  – Over this time, Delhi’s GDP share increased from 1.4 percent to 3.6 percent of India’s GDP.
  – Haryana now contributes more to India’s GDP than Punjab does, with a relative per capita income of 176.8% as of 2023–24, as opposed to Punjab’s 106.7 percent.

• Eastern states: West Bengal now makes up just 5.6% of the country’s GDP in 2023–24, down from 10.5 percent in 1960–61, when it was the third-largest share.
  – The per capita income of West Bengal fell from 127.5 percent in 2023–24 to 83.7 percent.
  – Undivided Bihar’s relative per capita income was 70.3 percent in 1960- 61, it declined to 31 percent in 2000-01 for the bifurcated state of Bihar.
• From 54.3 percent in 1990–1991 to 88.5 percent in 2023–2024, Odisha’s per capita income grew.

• Central states: In 1960–61, Uttar Pradesh contributed 14.4% of India’s GDP. But after that, its share began to decrease, and this trend persisted even after the split.
  – A five-decade period of decline (82.4 percent in 1960–61 to 60.1 percent in 2010–11) was followed by Madhya Pradesh. In the years 2023–2024, its relative per capita income climbed from 60.1% in 2010–11 to 77.4%.
• Northeastern states: Sikkim’s per capita income fell short of the national average in 1980–81. Its per capita income did, however, soar from approximately 100% of the national average in 2000–01 to 320% in 2023–24.
  – Assam, whose per capita income was initially marginally higher than the national average, saw a decline reaching 73.7 percent in 2023- 24.

Causes of the states’ regional differences

• Unequal Resource Distribution: Certain states gain more from the unequal distribution of natural resources, such as water, fertile land, and minerals, than others.
• Infrastructure Gaps: States with superior transportation, energy, and port systems draw greater investment and development, which causes disparities in growth.
• Industrialization: States with more industrialized economies grow economically more quickly than those with fewer industries, which stay underdeveloped.
• Governance and Policy Execution: Compared to states with weak policy execution and governance problems, those with effective governance and policies typically experience faster state growth.
• Human Capital and Education: States with higher human development indices lag behind others, while those with superior educational resources and a highly skilled labor force draw in more businesses and spur economic growth.

Conclusion 

• In general, the country’s western and southern regions are doing better than its other regions, with some success also seen in the north.
• The country’s eastern region remains a source of concern.
• With the exception of West Bengal, the maritime states have performed significantly better than the other states.
• Even Odisha, a coastal state that was historically a laggard, has performed better over the past 20 years.

Also Read Topics & Concepts:https://indianexpress.com/article/business/economy/steady-growth-in-west-south-states-decline-in-bengal-eac-pm-report-9573216/

Mains Model Questions Q. Describe the variations in the Gross Domestic Product (GDP) calculation methods used in India before and after 2015.

Introduction:

GDP is primarily used as a barometer to assess how fast an economy is growing. In order to comply with UN standards, a new series was introduced in 2015 to determine India’s GDP by updating the methodology using new data sources.

Body:

Difference between new methodology and the old one

Base Year Change

• Prior to 2015: 2004–05
• After 2015: 2011–12
• The global effort to accurately capture economic data is reflected in the changing of the base year used to calculate GDP.
  
  

Data used to gauge the growth of the manufacturing sector has changed.

• Prior to 2015: Information from the Annual Survey of Industries (ASI) and the IIP was used to assess the manufacturing sector’s performance which has over 2 lakh factories.
• After 2015: The annual accounts of businesses, which comprise about five lakh companies, are now used. These accounts are filed with the Ministry of Corporate Affairs (MCA 21).
  
  

GDP at market price has replaced GDP at factor cost.

• Prior to 2015: GDP at factor cost was computed prior to 2015.
• After 2015: Adopted the global standard of measuring GDP at market price and Gross Value Added (GVA) at basic price for sector-specific estimates.
• The new measures include taxes and product subsidies in addition to the cost of production.
  
  

The computation of labor income

• Prior to 2015: all labor was equal.
• After 2015: The term “effective labor input” has been used in the new series. Depending on whether an individual was an owner, a hired professional, or an assistant, different weights are given.
  
  

Modifications to the methods used to capture value addition in agriculture

• Prior to 2015, it was limited to farm produce value addition.
• Beyond farm produce, value addition in agriculture is now recognized after 2015.
• Data on livestock is now essential to the new approach.
  
  

Gathering Revenue from the Financial Sector

• Prior to 2015, the only private sector financial corporations were a small number of mutual funds, mostly UTI, and estimates for Non-Government Non-Banking Finance Companies that were put together by the RBI.
• After 2015: In addition to the regulatory agencies, SEBI, PFRDA, and IRDA, the financial sector now encompasses stock brokers, stock exchanges, asset management firms, mutual funds, and pension funds.

Conclusion: The new approach is statistically more robust because it includes variables that are more sensitive to recent changes and estimates a greater number of indicators, including employment, consumption, and business performance.

Article: 20^th September, 2024

Topic: Pradhan Mantri Janjatiya Unnat Gram Abhiyan

Relevance: GS Paper: 2 – Governance

Source: PIB

Context

Pradhan Mantri Janjatiya Unnat Gram Abhiyan was approved by the Union Cabinet with the goal of enhancing the socioeconomic standing of tribal communities.

About

• The scheme will cost a total of Rs. 79,156 crore (Rs. 22,823 crore for the state share and Rs. 56,333 crore for the central share).
• According to the Budget Speech 2024–2025, it will benefit over 705 tribal communities and encompass about 63,000 villages.
• According to the 2011 census, 10.45 crore people in India are Scheduled Tribes, and there are more than 705 tribal communities.
• The Mission consists of twenty-five interventions that seventeen-line ministries will carry out.

• During the next five years, each Ministry or Department will be in charge of carrying out the associated program using the funds allotted to them under the Development Action Plan for Scheduled Tribes (DAPST) in order to accomplish the following objectives:
• Goal 1: Pucca House for qualified households receiving additional benefits and enhancing village infrastructure
• Goal 2: Encouraging Economic Empowerment through the Development of Skills, Entrepreneurship, and Improved Means of Subsistence (self-employment),
• Goal 3 and 4 are the universalization of access to high-quality education and healthy lives with dignity aging.
  
  

Promotion of PMJUGA-funded programs

• Tribal Home Stay: 1000 Home stays will be promoted under Swadesh Darshan through the Ministry of Tourism in order to maximize the tourism potential of tribal areas and give the tribal community an alternative source of income.

• Holders of Forest Rights Act (FRA) Pattas for Sustainable Livelihood: The goal is to provide sustainable agricultural practices to all holders of FRA pattas so they can maintain and conserve forests.
• Enhancing the infrastructure of Government Residential Schools and Hostels: The Abhiyan seeks to upgrade the Ashram, Hostel, Tribal, and Government Residential Schools infrastructure in a manner similar to PM-Shri Schools.
• TMMCs, or Tribal Multipurpose Marketing Centers: One hundred TMMCs will be established for the purpose of effectively marketing tribal products and enhancing marketing infrastructure, awareness, branding, packaging, and transportation facilities.
  cutting edge facilities for sickle cell disease diagnosis.

Also Read Topics & Concepts:https://www.pmindia.gov.in/en/news_updates/cabinet-approves-pradhan-mantri-janjatiya-unnat-gram-abhiyan/

Mains Model Questions Q. What are the major legal initiatives by India since Independence addressing discrimination against Scheduled Tribes (STs)? (UPSC PYQ 2017)

Introduction:

There has historically been caste- and tribe-based discrimination against the scheduled castes and scheduled tribes. Because the groups are unaware of them, they are neglected and have a dated educational system. The Indian Constitution contains a number of clauses that safeguard the rights of Scheduled Tribe members and forbid discrimination against them. Since independence, the Indian government has been pursuing their advancement.

Body:

Constitutional safeguards: 

• Discrimination is prohibited by Article 15 on the grounds of religion, race, caste, sex, and place of birth. Similarly, untouchability is outlawed by Article 17 of the Indian Constitution.
• Equal opportunities: When it comes to public employment, Article 16 addresses equality of opportunity. Scheduled tribes, scheduled castes, and other marginalized groups have their economic and educational interests promoted by Article 46.
• Safeguard of Tribal Interests: Under Article 19(5), the state may impose specific restrictions in order to safeguard the interests of any Scheduled Tribe, even though every citizen is guaranteed the freedom to travel, reside anywhere in India, and to acquire and dispose of property.
• Article 164 designates a Minister responsible for tribal welfare in the states of Madhya Pradesh, Chhattisgarh, Orissa, and Jharkhand. These states have sizable populations of tribal people, and the unique appointment of a Minister to oversee tribal welfare is proof of the concern of the framers of the constitution for safeguarding the interests of Scheduled Tribes.
• National Commission for Scheduled Tribes: The National Commission for Scheduled Tribes was established in accordance with Article 338-A of the Indian Constitution to, among other things, look into and keep an eye on any issues pertaining to the protections afforded to the Scheduled Tribes by the Constitution or by any other legislation.

Significant legal actions to combat prejudice against Scheduled Tribes:

• Protection of Civil Rights Act, 1955: This legislation was passed in order to outlaw the practice of untouchability. With regard to the Scheduled Tribes, this Act helps the States and Union Territories carry out the provisions of the Constitution.
• Prevention of Atrocities Against Scheduled Tribes and Scheduled Castes The purpose of this act was to stop crimes and atrocities against Scheduled Caste and Scheduled Tribe members from occurring. The act establishes Special Courts to hear cases involving these offenses, as well as to provide relief and rehabilitation to those who have been harmed by them and handle related issues.
• Panchayats (Extension to the Scheduled Areas) Act of 1996: It was passed to allow the Panchayat-related provisions of Part IX of the Constitution to be extended to the Scheduled Areas.
• Recognition of Forest Rights Act, 2006: This law was passed in order to grant scheduled tribes and other traditional forest dwellers who have been living in these forests for many generations recognition and tenure rights over their forest land.

Conclusion: The government has implemented a multifaceted approach aimed at providing support for education, health, sanitation, water supply, skill development, livelihood, infrastructure, and other areas in order to mainstream and promote the overall development of the tribal population in the nation. A significant portion of the nation’s infrastructure development and basic utility provision in tribal areas is accomplished through various programs run by the relevant State and Central Governments.

Article: 20^th September, 2024

Topic: India’s stand on the Indus Water Treaty

Relevance: GS Paper: 2 – International Relations

Source: Times of India

Context

India has requested that the Indus Water Treaty (IWT) be “reviewed and modified” in a formal notice to Pakistan.

About

• With this most recent notice, India is indicating that it wants to renounce and renegotiate the 64-year-old treaty, as stated in Article XII (3) of the IWT.
• The following is stated in Article XII(3): “A duly ratified treaty concluded between the two Governments for that purpose may from time to time modify the provisions of this Treaty.”
• The two notifications coincide with an ongoing dispute over India’s construction of two hydroelectric projects in Jammu and Kashmir: the Ratle Hydroelectric Project on the Chenab in Kishtwar district, and the Kishanganga, a tributary of the Jhelum, in Bandipora district.
• Both projects are “run-of-the-river,” which means they use the river’s natural flow to generate electricity (330 MW and 850 MW, respectively) without interfering with it.
• Pakistan, however, has maintained that both of these projects are in violation of the IWT.
  
  

The Indus Water Treaty

• Following nine years of talks facilitated by the World Bank, India and Pakistan signed the Indus Water Treaty in 1960.
• It sets rules for how the Indus River system is used and managed.
• Water Allocation: According to the treaty, Pakistan will receive the waters of the three western rivers (Jhelum, Chenab, and Indus) and India will receive the waters of the three eastern rivers (Beas, Ravi, and Sutlej).
• According to the treaty, Pakistan received 70% of the water carried by the Indus Rivers System, while India received about 30% of the waters.

• Permanent Indus Commission: As part of the treaty, a commission was created to help the two nations communicate and work together on water management.
• Dispute Resolution: There are clauses that deal with resolving conflicts, mostly by negotiation and consultation.
• The treaty describes a three-tiered, sequential mechanism whereby disputes are resolved first by the Indus Commissioners of the two nations, then by the World Bank-appointed Neutral Expert, and finally by the Permanent Court of Arbitration (PCA) in The Hague.
• Development Projects: As long as India’s hydroelectric plans on the western rivers don’t interfere with Pakistan’s water supply, they are permitted.
  
  

India-related issues

• Together with related agricultural and other uses of the waters, there is a marked shift in the demographics of the population.
• In order for India to meet its emission targets, the development of clean energy must be accelerated.
• The impact of the ongoing cross-border terrorism in Jammu and Kashmir is what has hindered the Treaty’s smooth functioning and undermined India’s ability to fully exercise its rights.
• The Indian government has further stated that a review of the Treaty’s dispute resolution mechanism is necessary.
  
  

The Way Ahead

• One of the most effective attempts at water sharing in the world today is the Indus Waters Treaty.
• To combat climate change, it is necessary to update some technical requirements and broaden the agreement’s purview.

Also Read Topics & Concepts:https://indianexpress.com/article/pakistan/pakistan-urges-india-to-honour-provisions-of-indus-water-treaty-9577689/

Mains Model Questions Q. What are the disputes surrounding the Indus Waters Treaty? Why is the Treaty being called for modification?

Introduction:

India now controls the three eastern rivers (Beas, Ravi, and Sutlej) thanks to the Indus Waters Treaty. Three Western Rivers (Chenab, Indus, and Jhelum) are taken over by Pakistan. According to the treaty, Pakistan receives 80% of the water from the Indus River System, while India receives 20% of it. India is permitted by the treaty to use the Western Rivers for restricted irrigation purposes as well as non-consumptive uses like power generation and navigation.

Body:

Issues related to the Indus Waters Treaty:

• There has been an ongoing disagreement concerning two hydroelectric power projects: one on the Chenab (Ratle) River and the other on the Kishanganga River, which is a tributary of the Jhelum.
• Regarding India’s 850 megawatt Ratle hydroelectric power project, Islamabad has expressed concerns about the project’s design on multiple occasions, claiming that India would intentionally and artificially create a shortage of water or cause flooding in Pakistan by using the project’s reservoir.
• India had requested a Neutral Expert to settle the dispute, while Pakistan had demanded the establishment of a Court of Arbitration.
• Any disagreement must be settled in accordance with the agreement using a three-stage process. However, India felt that the World Bank had violated the IWT when it initiated two parallel dispute redressal processes in the Kishenganga and Ratle Hydro Electric Projects at Pakistan’s insistence.
  
  

Why is the Treaty being called for modification?

• Unfair water distribution: Pakistan has been given about 80% of the waters in the Indus basin. This is the most generous water sharing treaty, according to experts. It is the only water-sharing agreement in the world that requires the upper riparian state to give the downstream state’s interests priority.
• In order to end the protracted disagreement, Pakistan must be given the chance to start “intergovernmental negotiations” about the differences that the Indian side has labeled a “material breach” within 90 days.
• India is unable to construct any storage facilities on the western rivers as a result. Despite the fact that the treaty specifies that storage systems may be constructed in certain extraordinary situations.
• The volume and size of the basin are changing due to climate change. Compared to the Ganges or Brahmaputra basins, the Indus basin receives a larger contribution from glaciers. A shift in the flow conditions could be considered a “change of circumstances,” which would allow for future renegotiation or termination.

Conclusion: India needs to take action to make full use of the Western Rivers waters that it is entitled to. In J&K, the infrastructure needed to use the waters has not improved.

Article: 20^th September, 2024

Topic: Bio-RIDE Scheme

Relevance: GS Paper: 3 – Science & Technology

Source: The Hindu

Context

To encourage innovative biotechnology research and development, the Union Cabinet approved the Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE) program.

About

• Bio-manufacturing and Bio-foundry are a new component of Bio-RIDE, which combines two existing programs, Industrial and Entrepreneurship Development (I&ED) and Biotechnology Research and Development (R&D).
• The scheme will be implemented at a cost of Rs. 9197 crores between 2021–2022 and 2025–2026, which corresponds to the 15th Finance Commission period.

The Bio-RIDE Scheme’s implementation:

• Promote Bio-Entrepreneurship: By offering seed money, incubation assistance, and mentorship to bio-entrepreneurs, Bio-RIDE will foster a thriving startup ecosystem.
• Promote Innovation: Funding and incentives will be provided by the program for innovative research and development in fields such as synthetic biology, biopharmaceuticals, bioenergy, and bioplastics.
• Encourage Industry-Academia Collaboration: In order to hasten the commercialization of bio-based goods and technologies, Bio-RIDE will forge partnerships between research centers, universities, and business.
  
  

India’s Biotechnology Situation

• In terms of biomanufacturing, India is ranked 12th worldwide and third in the Asia-Pacific area.
• The biotechnology industry, which is still in its infancy, has grown to be valued at Rs 75,000 crore in the last ten years.
• The biotechnology sector in India was estimated to be worth $93.1 billion in 2022 and is projected to grow to $300 billion by 2030.
• India has risen from 81st place in the Global Innovation Index in 2015 to 40th place out of 132 economies in 2023.
• Over 2 million people are employed in the bioeconomy, which contributed 4% of India’s $3.47 trillion GDP in 2022.

State-sponsored Projects

• The Department of Biotechnology (DBT) established the Biotechnology Industry Research Assistance Council (BIRAC) with the goal of enabling and bolstering nascent biotechnology enterprises to engage in strategic research and innovation.
• The Government of India (GoI) is working to establish India as a global center for biotechnology and biomanufacturing through policy initiatives like Startup India and Make in India.
• India has become the “pharmacy of the world” thanks to beneficial government policies including the Draft R&D Policy 2021, PLI Schemes, and clinical trial regulations.
• FDI Policy: For greenfield pharmaceuticals, 100% FDI is permitted through the automatic route. Additionally, brownfield pharmaceuticals are eligible for 100% FDI under the government route.
• Up to 74% FDI is under the automatic route and beyond 74% is under the government approval route.

Conclusion

• The goal of the Bio-RIDE program is to increase bioentrepreneurship, stimulate innovation, and solidify India’s leadership in biotechnology and biomanufacturing worldwide.
• It seeks to close the gap between academic research and industrial applications, expedite research, and improve product development.

Also Read Topics & Concepts:https://www.pmindia.gov.in/en/news_updates/cabinet-approves-bio-ride-scheme-to-support-cutting-edge-research-and-development-in-biotechnology/

Mains Model Questions Q. How can biotechnology help to improve the living standards of farmers? (UPSC PYQ 2019)

Introduction:

Biotechnology holds great potential to revolutionize Indian agriculture and improve farmers’ livelihoods by increasing crop yields, resilience, and nutritional value while lowering input costs.

Body:

Ways that biotechnology raises farmers’ standards of living include:

• Genetically Modified (GM) Crops:
• GM crops with significant yield improvements, such as Bt cotton, have already been shown.
• The Bacillus thuringiensis (Bt) gene was inserted into cotton plants to confer resistance against the common pest, bollworms.
• Consequently, Bt cotton growers have witnessed higher yields and decreased use of pesticides, enhancing their earnings and promoting environmental sustainability.
• Crops Resistant to Drought and Salinity:
• Biotechnology can assist in producing crops that can withstand harsh environments such as drought or salinity, which can be beneficial in some regions of India where water is scarce or soil is saline.
• For example, work is being done to create a genetically modified rice variety called “Saltol” that has better salt tolerance. This variety could greatly increase crop yield and farmer income in coastal areas with saline soils.
• Biofertilizers and biopesticides:
• The development of biofertilizers and biopesticides, which are environmentally friendly substitutes for chemical pesticides and fertilizers, is being facilitated by advances in biotechnology.
• They lessen the impact on the environment and farmer input costs while enhancing crop protection and soil fertility.
• Disease-Resistant Varieties:
• It is possible to create crop varieties that are resistant to disease through genetic modification, which could drastically lower crop losses.
• One example is the continuous work to create banana varieties resistant to Panama disease, a deadly fungal ailment that may be able to protect many banana growers’ means of subsistence.
• Rich in Nutrients Crops:
• To combat malnutrition, biotechnology can aid in the development of nutrient-enriched crops.
• One such is Golden Rice, a genetically modified rice variety high in vitamin A that has the potential to address nutritional deficiencies in areas where rice is a staple crop in addition to increasing farmer income.

Conclusion: With all of its benefits, biotechnology in agriculture has the potential to significantly enhance the lives of Indian farmers. To guarantee that these technologies actually serve the interests of farmers and society as a whole, however, cautious stewardship, thorough assessment, and candid social discussions are essential.