Mrunal’s Mains Economy PILLAR4A: SECTORS OF ECONOMY → AGRICULTURE

Table of Contents
🌽
40 Agriculture- Intro & WTO (कृ षि- परिचय)..................................................................................299
40.1.1 How much asked in Mains GSM1-2-3?.................................................................................................................299
40.2 🌽Intro to Agri.............................................................................................................................299
40.3 Why government schemes can't fix Agro problem?.....................................................................300
40.4 🧪WTO-TRIPS vs Indian Agro...................................................................................................300
40.4.1 🧪TRIPS → Geographical indication (GI) vs Indian agro .........................................................301
भौगोलिक संके तक

40.4.2 🧪TRIPS → Biopiracy of Traditional Knowledge ...............................................................301

पारंपरिक ज्ञान की चोरी

40.4.3 🧪TRIPS → Plant Varieties registration ...................................................301

बहुराष्ट्रीय कम्पनियों द्वारा किसानों का शोषण

40.4.4 🧪TRIPS → GM Crops .................................................................................................301

जनिनिक बदलाव की गई फ़सलें

40.4.5 🧪TRIPS → General pointers ...............................................................................................................301

सामान्य बिंदु
40.4.6 🧪✍️ Conclusion: TRIPs & Indian Agro...............................................................................................................302
40.5 🚥WTO-AoA: Agreement on Agriculture...................................................................................302
40.5.1 🚥AoA- salient features...........................................................................................................................................303
40.5.2 🚥WTO-AoA: Impact on Indian Agriculture.......................................................................................................303
40.5.3 🚥✍️ Conclusion: TRIPs & Indian Agro...............................................................................................................304
40.6 PYQ-GSM3–2023-EcoQ: WTO and Farm subsidies (15marks).................................................304
40.6.1 Intro............................................................................................................................................................................304
40.6.2 Body1: notable for agri-subsidies............................................................................................................................305
40.6.3 Body2: WTO’s concern over Agri subsidies..........................................................................................................305
✍️
40.6.4 Conclusion: WTO noble aim but India can’t abide........................................................................................305
40.7 Agri subsidies - Explicit vs Implicit.............................................................................................305
40.7.1 Trend fertilizer subsidy post LPG...........................................................................................................................306
40.7.2 Trend irrigation subsidy post LPG.........................................................................................................................306
40.7.3 State Subsidy on Irrigation and Power...................................................................................................................306
💰
41 Public Expenditure on Agri (सार्वजनिक सरकारी ख़र्च)...................................................................307
🌽
41.1 Agro Subsidies: Good and bad................................................................................................308
41.1.1 🤩Agro Subsidies: Good..........................................................................................................................................308
41.1.2 😰Agro Subsidies: Bad / anti- arguments..............................................................................................................308
41.2 🌽🌐Agri-Input : MINDMAP..................................................................................................... 309
41.3 🌽🌐Input → LAND→ Land REFORMS...................................................................................309
41.3.1 Land reforms = low priority: WHY?......................................................................................................................310
✍️
41.3.2 Land reforms - Conclusion................................................................................................................................311
41.4 Contract farming and land leasing.............................................................................................311
41.5 PYQ-GSM3–2023-EcoQ: land ceiling. (10marks).......................................................................312
41.5.1 Intro............................................................................................................................................................................312
41.5.2 Body: justifying land ceiling as economic reform ( ये करना ज़रूरी क्यों है)...............................................................312
✍️
41.5.3 Conclusion:..........................................................................................................................................................313

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41.6 PYQ-GSM3–2024-EcoQ: land reform in some states. (10marks)...............................................313
41.6.1 Case of W.Bengal's land reforms.............................................................................................................................313
41.7 Agro Input Seeds: GM Crops allow or not?.................................................................................314
41.7.1 ✍️ 🌱🧬 GM-Crops: Conclusion templates?........................................................................................................314
42 Agri Input- Fertilizer (उर्वरक)..........................................................................................................314
42.1 Fertiliser use reduction: Measures taken in the past...................................................................315
42.1.1 📕ES24 suggestion fertilizer quota with E-Rupi DBT..........................................................................................315
42.2 Agri-Input → Water (Irrigation: सिं चाई)............................................................................316
42.2.1 Climate Change Impact on Crop Yields in India as per 📕ES24........................................................................316
42.3 Microirrigation- Charms challenges...........................................................................................316
42.3.1 ✍️ Conclusion: Micro irrigation.............................................................................................................................317
42.4 Irrigation → Water shed.............................................................................................................317
42.4.1 WATERSHED notable schemes.............................................................................................................................317
42.4.2 Watershed Challenges..............................................................................................................................................317
42.4.3 Agri-Input → Water (irrigation) → suggestions by Economic Surveys......................................................318
42.4.4 ✍️ ⛈ Irrigation: Conclusion? ( पेयजल और सिंचाई के बारे में निष्कर्ष)...........................................................................318

42.5 🌽🔪💰 Agri Inputs → Finance / Credit: ऋण............................................................................318

42.6 Agri loans: Channels and Challenges..........................................................................................319
42.6.1 Technology / digital lending – How can it help?..................................................................................................319
42.6.2 Shd we give loan-wavers to farmers?......................................................................................................................320
42.6.3 Agri Insurance problems?........................................................................................................................................320
43 🌽🔥 Agri-Output...........................................................................................................................320
43.1🌽🛒🤲👨‍🌾Agri-Selling → Why Support Farmers?.....................................................................320
43.1.1 Agri Selling→ APMC Nuisance.............................................................................................................................321
43.2 🌽🛒🤲👨‍🌾 Agri-Selling → MSP & Crop Diversification...........................................................322
43.2.1 MSP → Crop Diversification → Millets................................................................................................................323
43.3 Selling: FCI – features, challenges, reforms.................................................................................323
43.3.1 : → FCI → Problems (समस्याएं)........................................................................................................323
43.3.2 🌽👨‍🌾📦📦🕵🏽 FCI → Solutions by 📔📔ES20.......................................................................................................324
43.3.3 🌽🛒🤲👨‍🌾 Agri-Selling → MSP → FCI Procurement ( / )?.........................................................324
अधिप्रापण खरीद

43.4 🚛 AGRO-Selling: FCI Buffer Stock (PYQ-2024, 15m, 250w).....................................................325

43.4.1 🚛 Intro......................................................................................................................................................................325
43.4.2 🚛 Importance of buffer stock.................................................................................................................................326
43.4.3 🚛 challenges with buffer stock...............................................................................................................................326
43.5 🧸📈 Agri-Selling: Commodity / Future / derivatives market....................................................326
43.5.1 🧸📈 Commodity-futures market: Challenges.....................................................................................................326
43.5.2 🧸📈 Commodity-futures market: Way forward/ suggestion............................................................................327
43.6 🍅📈🤯 Agri-Selling: food inflation for consumers.....................................................................327
📕
43.7 ES24 on food inflation.............................................................................................................328
🌾
44 Cropping Pattern.......................................................................................................................330
🌾
44.1.1 Cropping pattern notable points.......................................................................................................................330
44.2 🌾 Cropping Pattern: Green revolution......................................................................................330
44.2.1 🌾 Green Rev: impact on production.....................................................................................................................330

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 44.2.2 🌾 Green Rev: impact on productivity...................................................................................................................331
44.2.3 🌾 Green Rev: other +ve and negative...................................................................................................................331
44.3 🌾 Cropping Pattern: Green revolution fail in eastern India. Why?..........................................331
44.3.1 🌾 Natural obstacles in Eastern India against Green Revolution........................................................................332
44.3.2 🌾 Manmade obstacles in Eastern India against Green Revolution...................................................................332
44.3.3 🌾 ✍️ Conclusion: Green revolution fail in Eastern India...................................................................................332
44.4 🌽Cropping Pattern: Rice and Wheat- Boon and Bane.............................................................332
44.4.1 🌽😍Reasons for success / why Farmers like WHEAT/RICE?...........................................................................333
44.4.2 🌽😰Rice and Wheat - BANE / challenges............................................................................................................333
44.4.3 🌽✍️ Conclusion: wheat rice - grow less...............................................................................................................333
44.4.4 📕ES24: Crop diversification: RICE vs crop-neutral incentive structures.........................................................333
44.4.5 🌾-🍚 De-hyphenating rice-wheat.........................................................................................................................333
44.5 🫕 Cropping Pattern: MILLET Cultivation- promote why?.......................................................334
44.5.1 🫕 Millet promotion: Government measures........................................................................................................334
44.5.2 🌽 🤝 International Year for Millets (2023)..........................................................................................................334
44.5.3 🌽 🤝 MILLETS: MAHARISHI..............................................................................................................................334
44.5.4 ✍️ Millets Conclusion:............................................................................................................................................335
44.6 🍏 Cropping Pattern: Horticulture.............................................................................................335
44.6.1 🍏😰
Horticulture: Random bans by USA / EU using SPS agreement...............................................................336
44.6.2 Cropping-Methods: Vertical hydroponic for Tomatoes/vegetables suggested by ES24 .............................336 📕
44.6.3 🍏✍️
Conclusion: horticulture challenges.............................................................................................................336
44.7 🪿Cropping Pattern: Integrated Farming System (IFS) एकीकृ त खेती प्रणाली..................................337
44.7.1 🪿IFS: benefits एकीकृ त खेती बाड़ी प्रक्रिया में फायदे लाभ.....................................................................................................337
44.7.2 🪿IFS: challenges एकीकृ त खेती बाड़ी प्रक्रिया में चुनौतियां...................................................................................................337
44.8 Modern Crops/ Farming Technology: Obstacles in adoption.....................................................338
44.8.1 🌵Case Study: Jatropha - a failed start....................................................................................................................338
44.8.2 🧵🪡 Case Study: Bt-Cotton....................................................................................................................................339
44.8.3 🪷 Case Study: Dragon fruit....................................................................................................................................339
44.8.4 🪷 long gestation period / fear of unknown / lack of patience............................................................................339
44.8.5 👿 Law and order / कानून व्यवस्था एससी एसटी के खिलाफ़ अत्याचार .................................................................................340
44.9 PYQ: GSM3–2023-EcoQ: change in cropping pattern (15marks)..............................................340
44.9.1 Intro............................................................................................................................................................................340
44.9.2 Body: Area increased by marketing........................................................................................................................340
44.9.3 Body: Area increased by consumption...................................................................................................................341
44.9.4 Body: Area decreased...............................................................................................................................................341
✍️
44.9.5 Conclusion:..........................................................................................................................................................341
44.10 AGRO-Selling: PM KISAN – 6000/Per Year.............................................................................341
44.10.1 ✍️ Income Support: Conclusion template? ( आमदनी में सहयोग -निष्कर्ष)...............................................................342

45 🧃Food Processing Industries for GSM3........................................................................................342

45.1.1 🧃Food Processing: Meaning ( : / )........................................................................................342
खाद्य प्रसंस्करण अर्थ मतलब
45.1.2 🥤 Food Processing: data from 📕ES24.................................................................................................................342
45.1.3 🧃🤑Food Processing Industry: Significance ( )............................................................................................343
महत्व

45.1.4 🧃🔭Food Processing Industry: Scope / Opportunities ( )..........................................................................343

अवसर

45.1.5 🧃😰Food Processing Industry: Challenges → General ( ).....................................................................343

चुनौतियां

45.1.6 🧃🚛Supply Chain Management (SCM: )................................................................................344

आपूर्ति श्रृंखला प्रबंधन

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 45.1.7 🧃🛶👩‍🌾Food Processing: Upstream issues............................................................................................................344
45.1.8 🧃🛬🛒Food Processing: Downstream issues.......................................................................................................345
45.1.9 🧃🛬🛒🎅Food Processing: Downstream issues → Export stage......................................................................345
45.2 E-commerce can help in SCM of food processing cos- how?........................................................346
45.2.1 ✍️ Conclusion: e-commerce for SCM....................................................................................................................346
45.3 Food Processing- government initiatives....................................................................................346
45.3.1 By Agri Ministry or food processing Ministry......................................................................................................346
45.3.2 Commerce Ministry’s Agri Export Policy 2018: how it helps food processing industry?................................347
45.4 Small Food Processing Units – Low adoption in India, WHY?..................................................347
45.4.1 Small food processing units - challenges...............................................................................................................348
45.4.2 Small food processing units can help in poverty removal how?.........................................................................348
45.5 Northwest India - location factors for food processing industry.................................................348
45.5.1 North West India: Government support...............................................................................................................349
45.5.2 North West India: Proximity with the market......................................................................................................349
45.5.3 🧃✍️Food Processing: Conclusion- हां इस क्षेत्र पर ध्यान देना होगा.............................................................................349

46 → Sectors → Animal husbandry (पशुपालन)..................................................................................350

46.1 Economics of animal rearing: Buffalo/ Cow...............................................................................350
46.1.1 Challenges in cattle-rearing.....................................................................................................................................350
46.2 Economics of animal rearing: Emu Bird.....................................................................................351
46.2.1 😰 Challenges / Constrains in Emu-rearing..........................................................................................................352
47 → Sectors → Fisheries................................................................................................................... 352
47.1 Pisciculture / Fish farming : Challenges......................................................................................352
47.2 Fisheries sector: Suggest future reforms.......................................................................................353
47.3 👻📯🐡🦐 Fisheries: Pradhan Mantri Matsya Sampada Yojana (2020)..................................353
48 🌽👨🏼‍🔬👨🏼‍🏫
Agri → Research Development & Education..................................................................354
48.1.1 ⚠️ Challenges in Agro R&D? <for Mains GSM3>................................................................................................354
48.1.2 ⚠️ Challenges in Agro Education? <for Mains GSM3>.......................................................................................355
49 🌽👨🏼‍🔬👨🏼‍🏫 Agriculture → Extension Service (विस्तार-सेवा).................................................................355
49.1.1 🌽👨🏼‍🔬👨🏼‍🏫 Agri-extension services → Timeline of schemes / events.....................................................................356
49.1.2 ✍🏻 Extension Services: Conclusion template.........................................................................................................357
49.2 📲 E-Tech in the aid of farmers...................................................................................................357
49.2.1 E-Tech: 4 notable areas / applications....................................................................................................................357
49.3 📡Agri Extension: Notable App / Portals - truckload of.............................................................357
49.3.1 Apps / Portal: for 360 info.......................................................................................................................................358
49.3.2 Apps / Portal: Weather / Soil / Cropping advisory...............................................................................................358
49.3.3 Apps / Portal: for SELLING produce.....................................................................................................................358
49.3.4 Loan-insurance related portals................................................................................................................................359
49.3.5 AI-based portals........................................................................................................................................................359
49.3.6 Misc. Portals / Statistics Database...........................................................................................................................359
49.3.7 🌽👨🏼‍🔬👨🏼‍🏫
AgriStack: integration of database for farmer welfare...........................................................................360
49.3.8 Obstacles to E-Tech Adoption by Farmers............................................................................................................360
49.3.9 E-Technology: Conclusion......................................................................................................................................360
49.4 PYQ-GSM3–2023-EcoQ: e-tech for farmers (10marks)..............................................................361
49.4.1 Intro............................................................................................................................................................................361

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 49.4.2 Body1: how E-Tech helps in Agri-production......................................................................................................361
49.4.3 Body2: how E-Tech helps in Agri-marketing........................................................................................................362
✍️
49.4.4 Conclusion link with SDG.................................................................................................................................362
49.5 📲 Digital Public Infrastructure (DPI).......................................................................................362
49.5.1 📲🥰 DPI - benefits?.................................................................................................................................................362
49.6 Biotechnology to help farmers.....................................................................................................363
49.6.1 😰Biotech Challenges to Indian Agriculture ( ).........................................................................................364
समस्याएं

49.6.2 🌽👨🏼‍🔬👨🏼‍🏫 Agriculture Research→ Agri- Life Science ( )...............................................................364

कृ षि जीवन विज्ञान

49.7 Scientists’ contribution to agriculture.........................................................................................365

49.7.1 🧑‍⚕️ Scientist: M. Visvesvaraya and Water Engineering.........................................................................................365
49.7.2 🧑‍⚕️ Scientist: Swaminathan and Green Revolution...............................................................................................365
49.8 📕ES24: A farmer-friendly policy framework (from Ch.5).........................................................365
49.9 👛Budget-2024 on Agriculture....................................................................................................366
✍️
49.9.1 Agriculture-Conclusion (निष्कर्ष)........................................................................................................................366
50 🚩💪Farmer Pressure groups.........................................................................................................366
50.1 ⚖️ 3 Farm Laws repealed............................................................................................................ 368
50.1.1 Government repealed the 3 farm laws in 2021-Dec, WHY?...............................................................................369
50.1.2 ⚖️👩‍🌾🛒 👋👋
: Farm Laws Repeal ka Criticism......................................................................................................370
50.1.3 ⚖️👩‍🌾🛒: ✍🏻Conclusion : Agro-Act#1: ( निष्कर्ष)......................................................................................................370

50.2 🥛New Ministry of Cooperation..................................................................................................371

50.2.1 🧑‍🤝‍🧑🤩Benefits of setting up New Ministry..............................................................................................................371
50.2.2 🧑‍🤝‍🧑😰Challenges against New Ministry ( )....................................................................371
नए मंत्रालय के सामने चुनौतियां
50.2.3 📕ES24: PACS - scope for Synergy for rural development..................................................................................372
50.3 ✍️Mains Questions- Economics Optional se Handpicked.........................................................372
50.3.1 ✍️Mains Questions: Agro → WTO Impact..........................................................................................................372
50.3.2 ✍️Mains Questions: Agro → Land Reforms.........................................................................................................373
50.3.3 ✍️Mains Questions: Agro → Cropping & irrigation...........................................................................................374
50.3.4 ✍️Mains Questions: Agro →E-Tech. in aid of farmers.......................................................................................375
50.3.5 ✍️Mains Questions: Agro →Food processing industry / Marketing.................................................................375
50.3.6 ✍️Mains Questions: Agro → MSP / PDS..............................................................................................................376
50.3.7 ✍️Mains Questions: Agro → Science angle..........................................................................................................377
40 🌽A GRICULTURE- INTRO & WTO (कृ षि- परिचय)

40.1.1 How much asked in Mains GSM1-2-3?

from 4A (Agro), 4B (mfg Services), 4C (NITI,PC-FYP; Unemployment), 4D (GDP), 4E (Inflation):
Year 2018 2019 2020 2021 2022 2023 2024
Marks 50 65 55 60 85 110 60
So, plz don't cry in front of me, why handout is so long. UPSC is asking more, so we've to study
more. रोने मत आना की इतने सारे पन्ने क्यों है। भई तो यूपीएससी पूछ भी ज़्यादा रही है, तो आपको ज़्यादा पढ़ना पड़ेगा।

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40.2 🌽I NTRO TO AGRI
(Definition) Agriculture is a primary economic activity that includes growing crops, fruits,
vegetables, flowers and rearing of livestock. (कृ षि एक प्राथमिक आर्थिक गतिविधि है जिसमें बढ़ती फसलें, फल, सब्जियां,
फू ल और पशुधन का पालन शामिल है)
- Modi-Target: Double farmers’ income by 2022-23 compared to 2015-16. (किसान की आय दुगनी करो)
[According to critics, this target is not achieved.]
- UN-SDG#1: End poverty in all forms. | UN-SDG#2: Eliminate global hunger, protect indigenous
seed and crop varieties, doubling agriculture productivity and small farmer incomes by 2030.
Agriculture % or ₹
Employment 42.3% of population in AGRO
Share in GDP 18.2%
Average Growth rate in 4.18% (to double the farmers income, this needed to grow at 12.5%
last 5 yrs between 2016–17 to 2022–23)
Growth rate in last 1 yr
1.4%
(2023–24)

40.3 WHY GOVERNMENT SCHEMES CAN'T FIX AGRO PROBLEM?

Even though agriculture is the largest employment provider in India, majority farmer struggle to an
even Rs.10,000 per month because:

 😰 Small sized farms / land fragmentation through division of land among successive
generations. ~90% of farm households own less than 2 hectares of land, said 📕ES24.
 😰 Debt traps viz a viz customised machinery, high quality seeds, agrochemicals not available at
affordable prices.
 😰 Low adoption of modern technologies / machines
 😰 APMC mandi- Lack of remunerative prices
 😰 e-NAM online trading platform to connect the 500+ APMC mandis has not yet become fully
operational.
 Annual floods, droughts, reliance on monsoon = can't grow crops for whole year.
 Infrastructure issues- Cold storage bottlenecks, SCM-issues (Supply-Chain Management)
 Social barriers / casteism. e.g. if a schedule caste farmer wants to adopt organic farming to
improve his income- other bahubali/dabangg/village-goons may oppose out of jealousy, and
destroy the crop at night. This discourages farmers from adopting new practises
 Religious values: prohibit some farmers from adopting poultry farming, prawn-pisciculture,
emu-bird egg farming etc.
 <you can add more points by rewording/twisting/modifying the content given in this handout>

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40.4 🧪WTO-TRIPS VS INDIAN AGRO

(PYQ-Opt-Economics-2021) Analyse the effects of TRIPS Agreement on Indian agriculture. (भारतीय

कृ षि पर TRIPS समझौते के प्रभावों का विश्लेषण करें।)
• (Origin) World Trade Organization (WTO) is an intergovernmental organization to
promote barriers-free international trade. Foundation: 1995. HQ @Geneva, Switzerland.
India is a founding member of this organisation.
• (Data) WTO has over 160 members covering total 98% of Global trade and global GDP.
• (Origin) Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international
legal agreement between all the member nations of the World Trade Organization (WTO).
• It became effective from 1995 and aims to protect the intellectual property rights (IPR).

40.4.1 🧪 TRIPS → Geographical indication (GI) vs Indian agro भौगोलिक सं के तक

• Pakistan claims GI tag over (1) Basmati (2) Kashmir Pashmina woolen shawls.
• The European Commission asked India and Pakistan to come to some solution through talks
but no solution was reached yet.
40.4.2 🧪 TRIPS → Biopiracy of Traditional Knowledge पारंपरिक ज्ञान की चोरी
• American multinational companies filed patents with medicines prepared from neem oil,
turmeric and other Ayurvedic plants.
• Indian had to undergo length the legal battle (1994–2000) in USA courts to defend its
traditional knowledge and Ayurvedic knowledge over Neem oil.

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40.4.3 🧪
TRIPS → Plant Varieties registration बहुराष्ट्रीय कम्पनियों द्वारा किसानों का शोषण
• Pepsi gave Potato (FC5) variety to Indian farmers for cultivation. Later on contract expired
and Indian farmers started selling FC5 variety potatoes to rival companies. Pepsi dragged
Indian farmers to court demanding compensation in crores of rupees for violation of IPR.
• later under the pressure and scrutiny, Pepsi withdraw the case and Government of India also
rejected its registration of FC5.
40.4.4 🧪
TRIPS → GM Crops जनिनिक बदलाव की गई फ़सलें
• Bt.Cotton : Monsanto (USA company) wants higher trait fees / licensing fees from Indian
seed companies to allow them to produce this variety of seeds. Government government of
India regulates the trait fees. Monsanto wants increase in the fees.
• Terminator gene: Monsanto (USA) making new variety of seeds with terminator gene so that
plants’ subsequent generations will be sterile and farmer will be forced to buy new seeds
every year. Government of India said it will not allow such seeds in India.
40.4.5 🧪TRIPS → General pointers सामान्य बिंदु
TRIPS-Positive ✋🚨 TRIPS-Negative / Limitation
• The TRIPs agreement has resulted in
greater motivation for companies to However, such research and development, as
invest in research and development on well as the seeds and planting material, are
seeds and plant varieties because expensive as they are mostly produced by
companies are assured that their foreign companies rather than Indian
intellectual property rights will be companies. This has increased the income
protected internationally. inequality between rich and poor farmers
• Therefore, any research that has occurred because poor farmers cannot afford it. For
and benefited Indian farmers is a positive example, Bt. Cotton. भारत में उतना ज़्यादा सं शोधन नहीं
aspect of TRIPs. सं शोधन को प्रोत्साहन

The TRIPS Agreement, through the GI tag, has ➢ Majority of Union and State subsidies
helped protect and promote traditional Indian go towards fertilizers, irrigation,
agricultural, food, handicraft, and textile exports. electricity, and minimum support price
(MSP), while very little subsidy is
निर्यात में बढ़ोतरी allocated to agricultural research and
development. As a result, we have not
been able to fully capitalize on the
benefits of the TRIPS agreement. सं शोधन
पर सरकारी ख़र्च अपेक्षा के मुताबिक़ नहीं
➢ 1st world countries not transferring
funding / technology. Doha
Development Agenda not yet concluded

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 TRIPS-Positive ✋🚨 TRIPS-Negative / Limitation
(Ref Pillar#3)

40.4.6 🧪✍️ Conclusion: TRIPs & Indian Agro

Template Description
X thing is Increasing the agricultural production of India through research and
important development. कृ षि उत्पादन बढ़ाने के लिए सं शोधन ज़रूरी
Y thing creating Issues related to biopiracy, claims over GI tags by foreign powers, profiteering
problems by multinational companies over seeds and GM crops.
Addressing these challenges through amendments in the WTO TRIPS
Z need of the hour
agreement. WTO के ट्रिप्स समझौते में सुधार की आवश्यकता है

40.5 🚥WTO-A A: A O GREEMENT ON AGRICULTURE

(PYQ-Opt-Economics-2023) Discuss the characteristic features of Agreement on Agriculture
(AOA) under Uruguay Round of GATT and examine its impact on Indian agriculture. (GATT के
उरुग्वे दौर के तहत कृ षि (एओए) पर समझौते की विशिष्ट विशेषताओं पर चर्चा करें और भारतीय कृ षि पर इसके प्रभाव की जांच करें।)

40.5.1 🚥AoA- salient features

➢ Requires the members to remove the tariff and non-tariff barriers to international agriculture
trade. शुल्क और ग़ैर- शुल्क बाधाओं को भी कम करना होगा, अंतरराष्ट्रीय के कृ षि व्यापार को बढ़ाना होगा।
➢ Classifies the government subsidies to Agriculture in 3 boxes: Green box, Blue box, Amber
Box. सरकार द्वारा दी जाने वाली कृ षि सबसिडी को तीन रंग के डब्बों में विभाजित किया जाता है
➢ Amber box subsidies (e.g. fertilizer subsidy, electricity subsidy, public procurement) distort
international trade / create barriers to international trade; therefore, WTO requires the
member countries to limit/reduce them. India opposes this because of the unfair treatment
given to developing countries. भारत सरकार को कृ षि सब्सिडी सीमा के नियमों से एतराज़
➢ Peace Clause (2023): gives exemption to India and other developing countries for the
subsidy given on public stockholding for food security purposes. शांति-धारा।

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 ➢ Special Safeguard Mechanism (SSM) for Developing Countries: if agri-imports from other
nations suddenly increase (surge) beyond a certain level, then the AOA allows developing
countries to temporarily increase taxes on these imported agri-commodities to protect the
livelihoods of local farmers. विशेष सुरक्षा प्रणाली
➢ Duty Free Quota Free Access to least developed countries (LDC) Agri-exports to other
nations. अति पिछड़े देशों से निर्यात होने वाले कृ षि उत्पादों पर अन्य देशों ने कोई टैक्स नहीं लगाना।
➢ System of regular review of the agreement and dispute settlement mechanism under WTO.
40.5.2 🚥WTO-AoA: Impact on Indian Agriculture
+ve -ve /challanges
The Peace Clause has allowed the The Peace Clause is a temporary solution. It is not a permanent
Indian government to continue solution. Successive ministerial conferences of the WTO (2013–
giving MSP/subsidies to farmers 23) have failed to produce a permanent solution to the food
for food security programs. subsidy issues. कृ षि सबसिडी पर कोई का भी इलाज अभी तक नहीं मिला।
The SSM mechanism to protect
The actual thresholds/ceilings/rules of SSM are yet to be decided
against cheap imports of
due to lack of consensus among member-nations.
agriculture products.
Environmental concerns: Fertilizer subsidies lead to excessive use
of fertilizers, causing soil and water pollution. (2) MSP leads to
excess production of rice and sugarcane, resulting in water
exploitation. The AoA doesn’t address these environmental
aspects. उर्वरक के अति उपयोग से पर्यावरण को हानि।
(2019–22) Australia, Brazil, and Guatemala won a WTO case
against the Indian Government’s subsidy to the Indian sugar
industry/sugar exports. शक्कर-सब्सिडी के स में भारत की हार।
The AoA does not have any specific provisions to facilitate the
transfer of agro technology from the first world to the third
world. So even if all the subsidy barriers are removed, still, India
cannot compete against the agriculture productivity of USA,
Europe, Europe, or Australia.
40.5.3 🚥✍️ Conclusion: TRIPs & Indian Agro
Template Description
Encouraging the barrier-free international trade of agricultural commodities,
X thing is while protecting the income security of small farmers and the nutritional security
important of poor people. (छोटे किसानों की आय सुरक्षा और ग़रीब लोगों की पोषण सुरक्षा का ख्याल रखते हुए बाधा
मुक्त अंतरराष्ट्रीय कृ षि व्यापार को प्रोत्साहन दिया जाए।)
Y thing creating Despite multiple ministerial conferences, there is lack of consensus/permanent

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 problems solution to (a) food subsidy limit and (b) SSM limit
Z is need of the Addressing these challenges through amendments in the WTO AoA agreement.
hour WTO के कृ षि समझौते में नए सुधारों की आवश्यकता है।

40.6 PYQ-GSM3–2023-ECOQ: WTO AND FARM SUBSIDIES (15MARKS)

What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised
by the World Trade Organization (WTO) in relation to agricultural subsidies. (भारत में कृ षि क्षेत्र को प्रदान
की जाने वाली प्रत्यक्ष एवं अप्रत्यक्ष सब्सिडी क्या है? विश्व व्यापार सं गठन (डब्ल्यू० टी० ओ०) द्वारा उठाए गए कृ षि सब्सिडी सं बंधित मुद्दों
की विवेचना कीजिए।)
40.6.1 Intro
➢ (Origin) governments across the world provide agriculture subsidies for 3 objectives 1)
poverty removal / income support to poor farmers 2) food security via enhanced food
production. 3) export competitiveness.
➢ (Data)India is no exception to it. We provide over 2 lakh cr (food subsidy) + 1.60 Lakh cr
(fertiliser subsidy) = nearly ₹3-4 lakh crore in food-fertilizer subsidies.
40.6.2 Body1: notable for agri-subsidies
Direct Subsidies प्रत्यक्ष सब्सिडी Indirect Subsidies परोक्ष सब्सिडी
• Irrigation Subsidy • Fertilizer, Power,
• DBT ₹6,000 (PM KISAN) • given to food processing companies for
• vaccine for the animals cold storage infrastructure,
• MSP Procurement procurement, storage, transport and
• Loan Interest subvention on crop loans export
upto 5% • Research & Development of new crop
• Crop Insurance Subsidy: PM Fasal Bima varieties

40.6.3 Body2: WTO’s concern over Agri subsidies

➢ Under WTO’s Agreement on Agriculture (AoA),
➢ WTO permits green box subsidies (on research development, animal vaccination etc)
without any ceiling.
➢ WTO puts ceiling on amber box subsidies i.e. subsidies given to increase production e.g.
subsidized electricity & fertilizer, MSP etc.
➢ Developed and the developing countries are required to limit their amber box food-subsidies
to 5% and 10% respectively to the value of their agriculture production.
➢ WTO ceiling aim to address following issues:
➢ preventing trade distortion by reducing the non-tariff barriers in the international trade
➢ Fairness / Equity: protecting the poor farmers (producers) in low income nations from cheap
imports sent/dumped by the bigger Nations.
➢ reducing environmental degradation by overuse of fertilizer, groundwater exploitation etc.

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40.6.4 ✍️Conclusion: WTO noble aim but India can’t abide
➢ Thus, WTO ceiling on agriculture subsidies are designed with Noble objectives. But India
does not abide with it because 1) % limits are unfair to developing nations 2) India required
to give subsidy for income security for the farmer and nutritional security for the poor.
➢ successive summit of WTO have failed to resolve this deadlock. Presently a ‘ceasefire’ is in
effect through ‘peace clause’ in AoA.
➢ need of the hour is to address it with a permanent solution for - (SDG 2) Zero Hunger and -
(SDG 12) Responsible Consumption and Production
40.7 AGRI SUBSIDIES - EXPLICIT VS IMPLICIT
(PYQ-Opt-Economics-2023) Distinguish between explicit & implicit subsidies. Explain the trends in
explicit subsidies on irrigation and fertilizer in India in post-economic reform period. (स्पष्ट सब्सिडी और
निहित सब्सिडी के बीच अंतर बताएँ। आर्थिक सुधार के बाद भारत में सिंचाई और उर्वरक पर स्पष्ट सब्सिडी में रुझानों की चर्चा करें।)

Explicit subsidies स्पष्ट सब्सिडी Implicit Subsidies निहित सब्सिडी

Transparently declared in the budget. not declared.
may not involve a cash transfer. Instead, they arise from
policies that affect the agricultural sector, leading to
usually in the form of cash-subsidies,
benefits for farmers without a direct financial
grants, or low-interest loans, free
transaction. e.g. ban on imported USA poultry,
electricity etc.
preferential procurement of the domestic agriculture
produce etc.

40.7.1 Trend fertilizer subsidy post LPG

Year 1995 2023 2024
Fertilizer subsidy ₹ 5500 cr ₹1.89 lakh crores ₹1.64 Lcr
Food subsidy ₹ 5100 cr ₹2.12 lakh crores ₹2.05 Lcr.
✋🚨 Challenges? Recall the prelims handout regarding the challenges of urea subsidy, over use,
smuggling, diversion to non-agriculture sector; inflation in the imported fertilizer because of the
Russia Ukraine war.
40.7.2 Trend irrigation subsidy post LPG
Year 1995 2023
Irrigation ₹ 90 crores ₹ 10,700 crores
command area development, major and
Major Micro irrigation, connecting the
medium irrigation projects, dams and flood
Focus canals to individual farms, watershed
control.
➢ Additionally, state government also provide subsidy to farmers for purchase of micro
irrigation equipments, construction of watershed.

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 ➢ ✋🚨 Challenges? Theft of canal water. Ground water exploitation, sub optimal adoption of
micro irrigation, cultivation of water intensive crops such as rice and sugar cane.
40.7.3 State Subsidy on Irrigation and Power
e.g. Gujarat Agriculture Residential Commercial
₹ 4.50–8.50 per
water charges fixed ₹200–1000 per ht per season ₹ 42 per 1000 lit.
litre
electricity ₹ 3.40 per unit. Additional Subsidy for
₹ 3–5 per unit ₹5–8 per unit
charges SC/ST/small-marginal farmers.
➢ Note: above data may not be fully accurate. It depends on many variables such as location
and how many units consumed.
➢ ✋🚨 Challenges? Overuse / Theft of the Canal-water and electricity in rural area.

41 💰P UBLIC EXPENDITURE ON AGRI (सार्वजनिक सरकारी ख़र्च)

Q. State reasons that support government intervention / public expenditure / subsidies in
Agriculture Sector. (optional economics 2013)
Budget Fertilizer Food PM-KISAN Other Agro Schemes Total
2023 1.89 lakh cr 2.12 lakh cr 60,000 cr 84,000 cr > 5 lakh cr.
5.20 lakh cr (=11%
2024 ₹1.64 Lcr ₹2.05 Lcr 60,000 cr 90,000 cr
of budget)#
Agri fertilizer , schemes , susbidies(5.20)
Agro∈Budget 2024= ∗100=11 %
Total Budget Expenditure (48 Lakh cr )
Following reasons necessitate such intervention by the government: (सरकारी ख़र्च ज़रूरी क्यों की)

1. Fertilisers - all type of fertiliser is not available in India. we have to import them, imported
fertiliser tend to be expensive →poor farmer cannot afford it without subsidies. #food-security
#inclusive growth (आयातित उर्वरक काफ़ी महंगे होते हैं सरकारी सब्सिडी ज़रूरी)
2. Electricity:- electricity is required for irrigation. Without subsidies, farmer cannot afford
electricity→ #food-security #inclusive growth (बिना सस्ती बिजली के सिंचाई मुश्किल)
3. Organic farming: demand for such products is low in India, crop gestation period is longer, per
Hector yield is low. If government does not give subsidy to farmers to adopt organic farming,
most farmers will not do it on Suo-Moto basis. #environment जैविक खेती अपनाने के लिए अगर सरकार
सब्सिडी नहीं देगी तो किसान उसे क्यों अपनाएगा? वो तो दे दनादन रासायनिक फर्टिलाइजर का इस्तेमाल करता रहेगा)
4. MSP: required to prevent exploitation of farmers at APMC. (न्यूनतम समर्थन मूल्य)
5. Income Support (PMKISAN-6k): required to help the farmers against limitations of APMC and
MSP procurement and vagaries of monsoon. (ग़रीब किसान को आर्थिक सहायता की ज़रूर)
6. loan interest subsidy, crop insurance premium subsidy: required to protect the farmer against
informal moneylenders exploitation→ debt trap → suicide. (वरना कर्ज़ के बोझ में वो आत्महत्या करेगा)

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7. R&D schemes/subsidies: in India private sector food processing industries is not matured. So pvt
sector will not invest greatly in the research development in crop fruits and vegetables. Govt has
to spend money. (निजी क्षेत्र की कं पनियां अभी तक परिपक्व नहीं हुई। इसलिए सं शोधन में वे तो बहुत पैसा नहीं डालेंगी। सरकारी
ख़र्च ज़रूरी।)
8. Agri Extension / Training: most of the Indian farmers are not diploma/degree holders. They lack
the access/initiative to adopt to latest cropping methods and technologies. Government has to
help them. (ज़्यादातर किसानों कॉलेज नहीं गए उन्हें कृ षि की नयी तकनीकों की तालीम देने के लिए सरकार ने पैसा खर्चना होगा)
9. Food storage/logistics pe subsidy to prevent food inflation. (खाद्य महँगाई से लड़ने के लिए योजनाएं )
Conclusion? for inclusive growth, poverty removal, environmental conservation, inflation control
and other reasons necessitate government intervention in agriculture sector. (समावेशी विकास ग़रीबी निवारण
पर्यावरण सं वर्द्धन महँगाई नियंत्रण आदि कारणों के चलते सरकार ने कृ षि क्षेत्र में दख़ल देना होता है और पैसा खर्चना होता है।)

41.1 🌽A GRO SUBSIDIES: GOOD AND BAD

- (Definition:) A subsidy is a support/assistance given by the government to help an individuals or
firm. (कोई एक व्यक्ति या सं स्था को दी जाने वाली सरकारी सहायता को सब्सिडी कहते हैं)
- Data: refer to the previous answer on public expenditure:
 Additionally, States too provide large amount of subsidies / assistance to the farmers in the form
of free electricity, irrigation, procurement and loan waivers.

41.1.1 🤩 Agro Subsidies: Good

 Subsidies are beneficial to prevent the Farmer distress and food wastage किसानों के सं कट और अन्न की
बर्बादी को बचाता है
 Post harvest Infrastructure (Op Greens: T-O-P)
 Direct income support (PM-KISAN: Green box subsidy as per WTO)
 Support for Organic farming, millet production etc.
 NSO Survey: Average Agriculture income ₹10,000
 Without government subsidies they cannot continue in the agricultural sector. बिना सब्सिडी के खेती-
बाड़ी करना मुश्किल
 Nor we can double the farmers income without providing them subsidies किसानों की आमदनी दुगनी
करने के लिए सब्सिडी देना जरूरी
 Subsidies can influencing farmer behaviour towards adopting better quality seeds, encouraging
the use farm machines / new technologies.
 Therefore agri subsidies are indispensable (अनिवार्य)
 Need of the hour is to ↓ the distortion created by agri subsidies, while ↑ their positive effect.
कृ षि सब्सिडी की नकारात्मक असर को कम करना है सकारात्मक असर को बढ़ाना है

41.1.2 😰Agro Subsidies: Bad / anti- arguments

 Cheap diesel/ electricity: Overexploitation of water, Excessive urea use pollution of soil and
water. सस्ती डीज़ल या बिजली से दिन रात दे धनधान पंप सेट चलाकर भू-जल का दुरुपयोग होता है।
 WTO Oppose. Barriers to international trade (विश्व व्यापार सं गठन को आपत्ति)

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 Urea subsidy: Smuggling / diversion problems. Overuse = pollution of soil, water
 MSP: Preference to cereals → Inflation in pulses and vegetables. Preference to Sugarcane and
rice→ Exploitation of water (न्यूनतम समर्थन मूल्य नीति में खामियों के चलते सब्ज़ियों और दालों की अवहेलना)
 loan waivers→ new set of problems. Moral Hazard. 😰📔📔ES20- during Election season
😰
farmers become lax in paying instalment. Recovery of loans. NPA. कर्ज़ माफ़ी से किसानों की आदत
बिगड़ती है इस आर्थिक सर्वेक्षण ने पाया।
 📕
ES24: Subsidies to the agriculture sector more than doubled between 2011-12 and 2020-21, -
but majority of that goes in fertiliser and electricity. These may help farmer in short-term. But,
for the long-term modernisation of agro, higher capital expenditure required.
✍🏻Conclusion: Public expenditure/ subsidy is required. But we should reduce or remove the harmful
subsidy. We should encourage the good subsidies. OR

- NSO Survey: Average Agriculture income ₹10,000.

- Without government subsidies they cannot continue in the agricultural sector. बिना सब्सिडी के खेती-
बाड़ी करना मुश्किल
- Nor we can double the farmers income without providing them subsidies किसानों की आमदनी दुगनी
करने के लिए सब्सिडी देना जरूरी
- Therefore agri subsidies are indispensable (अनिवार्य)
- Need of the hour is to ↓ the distortion created by agri subsidies, while ↑ their positive effect.
कृ षि सब्सिडी की नकारात्मक असर को कम करना है सकारात्मक असर को बढ़ाना है

42 🌽🌐A GRI-INPUT :

42.1 🌽🌐I NPUT → LAND→ LAND REFORMS

 While India accounts for >17% of world population but barely 2.5 % of land of the world. (भारत के
पास आबादी के अनुपात में जमीन बहुत कम है)
 Agriculture is a purely land based activity. Size and quality of land has direct bearing on
agriculture productivity and farmers’ income. Land ownership also serves as a social value &
security against credit. (किसान के लिए सामाजिक प्रतिष्ठा और कर्ज लेने के लिए जमीन की मालिकी महत्वपूर्ण)

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 (Definition) Land Reforms: - government led division of agricultural land and its reallocation to
landless people. सरकार के द्वारा भूमिहीन किसानों में जमीन का पुनरवितरण
 🤩Zamindari abolition was successful because of the constitutional amendment, And popular
discontent against zamindars.
 🤩Land ceiling : Jammu Kashmir and West Bengal it was successful due to political will and
popular discontent - said Historian Bipan Chandra. लोगों में नाराज़गी और राजनीतिक इच्छाशक्ति के चलते
कश्मीर और बं गाल में सफल।
 😥outdated land records, opportunity for diverting the land to benami / relatives' names. कागज पर
दिखाने के लिए रिश्तेदारों में जमीन बांट दी
 Bureaucratic apathy- Officials mostly live in city areas and rarely visit the rural areas. Work done
by Patwari with local nexus, corruption. (सरकारी बाबू की उदासीनता)
 Inaction by Panchayat and civil society. पंचायत और नागरिक सं गठन की उदासीनता
 Ignorance, poverty, illiteracy → voting based on caste/religion. so, Landless farmers not a
separate vote bank. जाति और धर्म के आधार पर वोटिंग. जमीन सुधार राजनीतिक मुद्दा नहीं है
 Forest rights act → Resistance by the forest officials. Fake claims over jungle land. वन अधिकार कानून
में समस्याएं
42.1.1 Land reforms = low priority: WHY?
 Post-LPG 1991: focus land acquisition for highways / SEZ and service sector, make in India etc.
अब तो सरकार किसानों से जमीन सं पादन करके वहां राजमार्ग औद्योगिक कें द्र इत्यादि बनाने पर जोर दे रही है
 So land Reform is not receiving adequate priority in the budgetary support or policy making. अब
तो वैसे भी नीतिगत अग्रिमता में नहीं
 already too much land fragmentation happened due to division of ancestral land among the
children. Further scope for land ceiling / land redistribution is limited. Case for land
consolidation/land pooling. Shifting the small and marginal farmers towards manufacturing and
service sector. Implementing model land leasing act etc. (अब तो बाँटने के लिए ज़मीन ही नहीं बची तो क्या
बाँटोगे?)

✍️
42.1.2 Land reforms - Conclusion
 if land ownership / tenant rights are clear then Farmer can get loans easily. More motivation to
make long term investments in farm & aquaculture, beekeeping etc. However due to

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 aforementioned challenges, it is difficult to carry out further /more land reforms. Therefore need
of the hour is to promote Cooperative farming, Farmer producer companies → consolidation of
the land → Farm mechanization → Production ↑
42.2 CONTRACT FARMING AND LAND LEASING
- (Definition) Contract farming is a system in which agricultural production is carried out based
on a pre-agreed contract between the seller (farmer) and a buyer. Buyer (usually a food
processing company) provides the farmer with the necessary inputs, such as seeds, fertilizers,
and technology, while the seller (farmer) agrees to produce and deliver the specified crop or
product within a specified timeframe and quality standards. The buyer also typically provides a
guarantee to buy the agriculture produce at a pre-determined price.
- (Definition) Land leasing refers to the practice of renting or leasing land from landlord/owner to
another party for rent/payment. In Indian agriculture. The practice of land leasing is rising in
India, because of migration of the big farmers to cities for secondary business, child education
and better standard of living. (किराएदार किसान निश्चित समय तक वहां खेती-बाड़ी करेगा और मूल मालिक को किराए की
रकम देगा)
CONTRACT FARMING LAND LEASING
+ve /  Farmer gets assured prices, good  🤩if small farmers lease these land → big
charms seeds & fertilizers. कीमतों की गारंटी,
farmer can club/group it → farm
कं पनी अच्छे बीज और उर्वरक देगी
mechanization → ↑ agro production.
छोटे खेतों का एकीकरण बड़े पैमाने पर मशीनों द्वारा खेती
 🤩small farmers may shift to the
manufacturing or service industry in the
urban areas → ↑ income than
agriculture. छोटे किसान फै क्ट्री में काम करना शुरू
करें आमदनी बढ़ेगी
-ve /  Pepsi-potatoes controversy.  😰Land grabbing cheating and fraud.
challenge  Prevalence of informal and जमीन हड़पना
s unwritten contracts → Farmers
cheated / delays in payments. But
 😰Bankers Hesitate in giving loans to the
tenant farmers. किराएदार किसान को बैंक वाले
now Govt brought bill but
आसानी से लोन नहीं देते
withdrawn after farmer protests.
 solution: Union gave model act for land
leasing to States. But majority of the state
governments yet to adopt it.
✍️Conclusion: NSO survey found Average monthly income from of agriculture for most households
₹10,000/per month

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- Thus, farming is not a profitable activity for the majority of the farmers. खेती-बाड़ी मुनाफे कारक व्यवसाय
नहीं रहा
- need of the hour is to encourage contract farming & land leasing for SDG goals -poverty removal
and decent work and economic growth. इसलिए उक्त चीजों को अग्रता क्रम से लागू करना जरूरी
42.3 PYQ-GSM3–2023-ECOQ: LAND CEILING. (10MARKS)
State the objectives and measures of land reforms in India. Discuss how land ceiling policy on
landholding can be considered as an effective reform under economic criteria. (भारत में भूमि सुधार के
उद्देश्यों एवं उपायों को बताइए । आर्थिक मापदंडों के अंतर्गत, भूमि जोत पर भूमि सीमा नीति को कै से एक प्रभावी सुधार माना जा सकता
है, विवेचना कीजिए।)
➢ Context1: since 2014 majority of the economy questions have been asked around the
tone/themes of NITI/Eco surveys. And under the present economic reform agenda set by the
Niti Aayog and economic surveys since 2014, ye (land ceiling) koi economic reforms ka
mudda hai hi nahi. Therefore, I (Mrunal) think UPSC examiner panel has got some new
professor from a particular state/ideology, and therefore sudden question on Tagore in
GSM1 and land ceiling in GSM3. Nonetheless, since they have asked, so, we will try to frame
an answer. (अब मुझे तो ये प्रश्न तार्किक नहीं लगता क्योंकि आज की आर्थिक स्थिति ये ज़मीन सीमा नीति का अमल असं भव)
➢ Context2: due to successive generations of land subdivision/growing population: hardly
0.1% of the farming families have more than 10 ha of land (says Eco Survey). So land ceiling
is not a very feasible solution in the first place- because there is not enough big land owner
left to seize decent amount of land for remaining farmers. (उतनी ज़्यादा ज़मीन बची भी नहीं की अमीर
किसानों से ज़ब्त कर के गरीबों में बाँटी जा सके ।)
➢ Anyways, UPSC has asked so lets make an answer:
42.3.1 Intro
➢ (Definition) Land ceiling refers to the maximum amount of land that an individual is legally
permitted to own. His/her surplus land is then seized by Government & redistributed to
landless farmers. (ज़मीन सीमा नीति यानी कि एक क़ानूनी रूप से निर्धारित मात्रा से ज़्यादा ज़मीन की मालिक की कोई रख
नहीं सकता ऐसी अतिरिक्त ज़मीन को सरकार ज़ब्त करेगी और भूमिहीन किसानों में बाँट देगी)
➢ (Origin) after independence, land ceiling measures had been adopted by various state
governments. Jammu Kashmir and West Bengal observed more success in it than others-
says historian Bipin Chandra.
➢ (Data) As of 2020: Hardly 0.1% farming families own >10 ht. Over 86% farming families
own 2ht or less.
42.3.2 Body: justifying land ceiling as economic reform (ये करना ज़रूरी क्यों है)
➢ Big film stars / politicians amassing large track of farmhouses for tax-avoidance / evasion /
benami-investment purpose. (टैक्सचोरी के लिए बड़ी फ़िल्म स्टार जो जमीनें ख़रीद रही है उसे ज़ब्त करना चाहिए)
➢ To prevent concentration of wealth and inequality. (असमानता को कम करने के लिए ये ज़रूरी है)
➢ For growth of SC/ST families.
➢ To reduce the exploitation of tenant farmers. (किराएदार किसानों का शोषण कम करने के लिए)

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 ➢ Farmer without land ownership= difficult to get bank loans. Whereas few farmers with large
track of land cornering all the loans under PSL quota. (बिना ज़मीन मालिकी दस्तावेज़ो के बैंक मैनेजर कृ षि
लोन आसानी से पास नहीं करता)
➢ PM KISAN ₹6000 DBT available if only a farmer has ownership of the land.
➢ Farmer without land ownership may ultimately be forced to migrate to urban areas resulting
into new problem of slum and congestion. (वरना भूमिहीन किसान शहरों में भीड़ बढ़ाएं गी)
➢ Big farmer may adopt monoculture, avoid new experimentations, be happy with Wheat-Rice
MSP. Whereas Small sized farm = greater hunger to earn quicker/faster money by adopting
newer cropping methods like Dragonfruit, Kiwi etc. (बड़ी ज़मीन वाले नए प्रयोग नहीं करते। छोटी ज़मीन
वालों में नए प्रयोग नई फ़सलें अपना के जल्दी जल्दी पैसा कमाने की चाहत होती है)
42.3.3 ✍️ Conclusion:
➢ if land ownership / tenant rights are clear then Farmer can get loans easily. More motivation
to make long term investments in farm & aquaculture, beekeeping etc.
➢ Therefore need of the hour is to promote land reforms for 2x farmer income, SDG Goal for
zero hunger thru increased the food production etc.
42.4 PYQ-GSM3–2024-ECOQ: LAND REFORM IN SOME STATES. (10MARKS)
Q. What were the factors responsible for the successful implementation of land reforms in some parts
of the country? Elaborate. देश के कु छ भागों में भूमि सुधारों के सफल कार्यान्वयन के लिए उत्तरदायी कारक क्या थे?
 (Definition) Land Reforms: - government led division of agricultural land and its reallocation to
landless people. सरकार के द्वारा भूमिहीन किसानों में जमीन का पुनरवितरण
 It has been more successful in Jammu Kashmir, Kerala and West Bengal compared to other parts
of India.
42.4.1 Case of W.Bengal's land reforms
There were two principal land reform programs in West Bengal in 1960s-80s.
• (1) Land ceiling and re-distribution
• (2) Operation Barga, involving registration and regulation of tenancy contracts.
W.Bengal vidhan sabha passed a new Land Reform Act.
• It made sharecropping hereditary, rendered eviction by landlords a punishable offense,
• It shifted the onus of proof concerning identity of the actual tiller on the landlord.
• The W.Bengal government subsequently undertook a massive drive to identify and register
tenants with the aid of local governments and farmer unions.
Similar factors can be identified in Jammu, Kashmir and Kerala, where the land reform was
successful.
In conclusion, (1) political will (2) legislative/legal backing (3) involvement of local bodies (4)
farmer unions are the major factors that determined the success of land reforms in some state of
India.

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42.5 AGRO INPUT SEEDS: GM CROPS ALLOW OR NOT?

We’ve a robust regulatory framework with GEAC. So, mischief is unlikely so we should allow GM
crops with following precautions →
1. Allow GM seeds which don’t have Terminator Gene or high cost. (लागत खर्च कम)
2. Allow GM seeds that have following properties: 1) Disease, pest & drought resistant 2) Longer
shelf-life (जल्दी बिगड़े नहीं) 3) Shorter crop duration (जो फसल जल्दी तैयार हो जाए) 4) Nonfood / Tree
format crops -e.g. cotton, rubber etc. (जिसे खाने में इस्तेमाल न किया जाए)
3. To prevent MNC monopoly on GM seeds, we’ve to encourage domestic companies. (बहुराष्ट्रीय
कं पनिओ का एकाधिकार रोकने के लिए घरेलू कं पनियो को प्रोत्साहन दो.)
42.5.1 ✍️ 🌱🧬 GM-Crops: Conclusion templates?
A. ✅Conclude in Favor: India needs self-sufficiency in agri bcoz 1) SDG goal of ZERO HUNGER
2) Economic goal of low food inflation. GM-crop can help in this regard, so a positive
consideration should be given for GM in India. भुखमरी और खाद्यान्न में महंगाई से लड़ने के लिए अनुमति दो
B. ✋Conclude Against: India is a signatory to Cartagena protocol to protect biodiversity. SDG
Goal (#2.5) also requires all nations to protect the genetic diversity of plants and animals. Given
the aforementioned concerns, GM crops should not be introduced in India without due
diligence. उक्त भयस्थानों को देखते हुए, जैव विविधता बनाए रखने के लिए, ज्यादा सं शोधन के बिना अनुमति नहीं देनी चाहिए

43 AGRI INPUT- FERTILIZER (उर्वरक)

- (Origin) Any crop or plant requires variety of nutrients for its growth, such as nitrogen (N),
phosphorus (P) and potassium (K). ideal ratio of N:P:K in soil is 4:2:1.
- If there is deficiency of any of these nutrients in the soil, farmer needs remedy it through use of
manure/fertilisers.

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- (DATA) every year union government spends over 1 lakh crore rupees on fertiliser subsidy.
consequently, farmers use excessive amount of urea, resulting into imbalanced ratio of N:P:K to
Resulting into new set of problems such as soil and water pollution.
Elements Nitrogen Phosphorus Potassium
ideal ratio 4 2 1
2009- 10 4 3.2 1
2019–20 7# 2.8 1
 bcoz Urea accounts for more than 82% of the nitrogenous fertilisers - due to subsidy.
43.1 FERTILISER USE REDUCTION: MEASURES TAKEN IN THE PAST
to reduce the consumption of urea, government enacted following schemes:

 Soil health card to give ideal prescription to the farmer for the use of fertilisers, as per the
requirement of his soil.
 Nutrient-based subsidy scheme - to promote use of fertilisers other than urea.
 Neem-coating of urea. Nano-urea
 One Nation One Fertilizer single brand bags to prevent diversion/smuggling.
 Paramparagat Krishi Vikas Yojana & Bhartiya Prakritik Krishi Padhati to promote chemical, free
organic farming.
 promoting organic fertilizers / manure from Gobardhan plants.
 Gobardhan initiative → by-product: manure/ organic fertilisers from cattle dung.
despite all this, there has not been enough reduction in the use of fertilisers, as evident from the
quantum of subsidies.

Year 2022 2022 2023 2024

Fertilizer Subsidy (lakh Cr.) 1.05 2.51 1.89 1.64
one of the reasons could be apathy / lack of awareness / lack of incentives among farmers in state
governments, to reduce the fertiliser use.

43.1.1 📕
ES24 suggestion fertilizer quota with E-Rupi DBT
• Assign fertiliser purchase quota to each farmer depending on his land ownership and type of
crop.
• Transfer this subsidy to him in the form of E-Rupi vouchers.
• Suppose a farmer purchases fertiliser qty that is less than their quota-entitlement, he can use
the remaining E-Rupi balance to purchase other agricultural inputs, such as seeds and
pesticides etc.
• Any unused subsidy at the end of the year can also be converted into a small savings
instrument in the farmer’s name at a post office. (e.g Kisan Vikas Patra instrument.)
• This will give an incentive to the farmer not to use excessive fertiliser.

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43.2 🌧☔️A GRI-INPUT → WATER (IRRIGATION: सिंचाई)

Definition? The supply of water to crops at different intervals is called irrigation.

 Challenges? While India accounts for more than 17% of world population but we have barely 4%
of world's water resources. आबादी के हिसाब से जल सं साधन बहुत कम है भारत के पास
 India is a water stressed country. >50% of the agri depends on rainfall. Only four months of
monsoon & if El-Nino we receive even less rainfall. → 2014 & 2015 drought → food inflation.
 The countries with the largest areas under groundwater irrigation: India (39 million ha), China
(19 million ha) and USA (17 million ha) (भारत में भूजल द्वारा सिंचाई बहुत ज्यादा मात्रा में होती है)
 MSP, heavily subsidized electricity, water and fertilizers = 60% of water is consumed by water
intensive crops like paddy and sugarcane. चावल और गन्ने की खेती के चलते पानी व्यय ज्यादा
 By 2050, India will be in the global hotspot for ‘water insecurity’. (जल असुरक्षितता)
 To earn 2x (double) income, a farmer must cultivate multiple crops annually. But majority of
farmers face water shortage so they can’t do so. (बिना पानी के किसान की आमदनी दुगना करना असं भव)

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43.2.1 Climate Change Impact on Crop Yields in India as per 📕ES24
Crop Irrigation Type Yield Change by 2050 Yield Change by 2080
Rice Rainfed -20% -47%
Rice Irrigated -3.5% -5%
Wheat N/A -19.3% -40%

43.3 MICROIRRIGATION- CHARMS CHALLENGES

Charms of Micro Irrigation in India Challenges of Micro Irrigation in India
Efficient Water Use: Water Conservation, High Initial Investment vs loans not easily
Reduced Water Logging available.
Increased Crop Yield Technical Knowledge, Training, repair services
not easily available.
Drip Fertigation (i.e. mixing of Fertiliser within Requires Electricity to run the sprinklers.
the water) → Improved Crop Quality, yield
Reduced Weed Growth After heavy rain / floods: Mud Clogs the
Emitters. Repair maintenance difficult / time
consuming.
Labor and Time Savings Trampling by the wild boar/pigs / elephants /
Nilgai = not covered in PM Fasal Bima crop
insurance.
Environmentally Friendly- Compare borewell /
ground water depletion. Etc.

43.3.1 ✍️ Conclusion: Micro irrigation

X thing imp Water conservation and food security
Y thing creating Farmers dependent on vagaries of monsoon; Canal and bore wells resulting
problem in groundwater depletion.
Z need of the hour Adoption of micro irrigation by all farmers
- Increased crop yield and improved crop quality contribute to SDG 2
Will help in SDG (Zero Hunger).
goals - Water conservation, and reduced water logging support SDG 6 (Clean
Water and Sanitation) & SDG 13 (Climate Action)

43.4 IRRIGATION → WATER SHED

- (Definition) man-made watershed/ artificial / constructed watershed, is an area created by
human to manage water flow and distribution.
- examples: dams, reservoirs, embankments, ponds, lakes.
- significance: to collect and store water, prevent floods, and channel it for various uses such as
agriculture, urban water supply, hydropower generation, fisheries and other human activities.

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43.4.1 WATERSHED notable schemes
Scheme Year
Drought Prone Areas Programme (DPAP) 1970
Desert Development Programme (DDP) 1977
Integrated Wastelands Development Programme (IWDP) 1983
National Watershed Development Project for Rainfed Areas (NWDPRA) 1990
Hariyali Guidelines 2003
National Watershed Mission 2013
Watershed Development Component of Pradhan Mantri Krishi Sinchayee Yojana
2015
(WDC-PMKSY)
+ many things refer to prelims handout.
43.4.2 Watershed Challenges
A study by the National Watershed Development Agency (NWDA) found that
Awareness only 25% of people in rural areas are aware of the benefits of watershed
management.
Cooperation Between union and states, Between officials and community.
Corruption Instances of corruption in the contract / construction of watershed structures.
- A) Constructing a dam / canal / sub-canal for irrigation or giving Free /
subsidized for electricity and water→ Easier and tangible visibility to the
farmers/ voters.
Funding - B) Whereas, watershed → ground water recharge → reduced impact of
drought → this benefit is not easily seen by voters.
So ruling parties feel compelled to priorities the funds for “A” over “B” to keep
voters happy.
Land Rising population and Urbanisation → Encroachment of the villagers / mafia on
availability government land = enough land not available for building such structure.
✍️Conclusion: - similar to Micro irrigation.

43.4.3 ☔️
Agri-Input → Water (irrigation) → suggestions by Economic Surveys
1. River inter-Linking project. Self-study in Geography for more on this topic.
2. 👜🥻Budget-2022:- Funding for river interlinking: Ken-Betwa, Damanganga-Pinjal, Godavari-
Krishna, Krishna-Pennar, Pennar-Cauvery and Par-Tapi-Narmada (although Par-Tapi-
Narmada dropped due to public protest) (इन नदियों को आपस में जोड़ने के लिए नए बजट में कु छ बातें की गई)
3. Encourage pulses cultivation in the drought prone areas. अकाल प्रभावित विस्तार में दालों की खेती
4. Canal water usages: cost-based water pricing, stop theft of water. (उपभोग आधारित दाम वसूले जाएं , पानी
की चोरी को रोका जाए)
5. Rain water harvesting i.e. capture and store rainwater. (वर्षा जल सं चयन)

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6. Watershed management i.e. building percolation tanks, recharge wells, etc. with community
participation. It helps in conservation of rain, surface and groundwater resources.
7. And finally, a National level dedicated agency to push above things. (राष्ट्रीय स्तर पर सं स्था बनाई जाए)
43.4.4 ✍️ ⛈ Irrigation: Conclusion? (पेयजल और सिंचाई के बारे में निष्कर्ष)
 Water is a scarce natural resource. Water is fundamental to life, livelihood, food security and
sustainable development. SDG Goal#6 requires India to provide Universal access to safe and
affordable drinking water for all. Aforementioned policy / scheme / challenges are significant in
this regard / need to be addressed on priority basis.
 दुर्लभ प्राकृ तिक सं साधन- आजीविका सुरक्षा, सतत विकास के लिए सब को स्वच्छ और सस्ता पेयजल उपलब्ध कराना जरूरी. अग्रता
क्रम से इस समस्या से लड़ना होगा

43.5 🌽🔪💰 A GRI INPUTS → FINANCE / CREDIT: ऋण

(Intro: Origin) Small and marginal farmers produce little marketable surplus, and often deprived of
the remunerative prices even during bumper crops, so without borrowing they can never buy inputs
for the next cropping cycle. (छोटे सीमांत किसानों के पास बेचने के लिए विपुल मात्रा में अनाज होता नहीं और अच्छी पैदावार के
दौरान भी, बाजार में अच्छे मूल्य मिलते नहीं है, इसलिए हमेशा वे कर्जे में डूबे रहते हैं ) Notable initiatives are:

RBI’s PSL norms: रिजर्व बैंक द्वारा प्राथमिक क्षेत्र के ऋण मानक Ref: Pill#1: Monetary policy
handout
Nationalization of banks after the Independence. Ref: Pill#1: Bank
Setting up of differential banks (RRB, LAB, SFB). classification handout
Kisan credit card, interest subvention scheme, debt waiver Ref: Pill#1D: Fin.inclusion
Negotiable Warehouse Receipts (NWR) Prelims HDT 4A
43.6 AGRI LOANS: CHANNELS AND CHALLENGES
• - Ability of the farmers to do farming - directly depends on access to affordable loans.
• - Share of informal money-lenders giving loans to farmer has decreased from 90% (1950) to
less than 24% in 2021-22 - thanks to due to government / RBI initiatives such as
nationalisation of banks and PSL norms.
channel Challenges
Coop  Casteism, politicization, Financial scams in the cooperative banks
societies /  Therefore alone cooperative societies cannot help.
Coop Banks  They should be supplemented with other Institutions such as RRB, SFB, SCB,
NBFCs, and micro finance institutions (MFI)
Commercial - 😰Landless and tenant farmers without documents. = Difficult to get the loan
banks and application approved.
RRBs
- 😰📔📔ES20- during Election season farmers become lax in paying
installment, hoping for debt-waiver.
- 100% financial inclusion not yet done.

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 - 😰accessibility in remote areas is a problem. Esp. eastern and northeastern
India due to LWE (left-wing extremism) and insurgency. [Reform: RBI has set
up a weightage system in the PSL-lending norms to motivate bankers to focus
on the backward districts.]
Micro  Cannot provide large size loans.
finance  Predatory lending and strong arm recovery tactics- resulting in suicides in
institutions Andhra (2010s)
43.6.1 Technology / digital lending – How can it help?
How can we use technology to improve the loan distribution and prevent NPA in agri sector?

- Cooperative banks → Pen and paper mode of record keeping → Scope for fraud and
management.
- Therefore, Government funding → NABARD → Core banking solution softwares @district level
cooperative banks.
- JAM trinity → Eliminate the bogus loan beneficiaries.
- E-Negotiable warehouse receipt (NWR) → Loans from banks
- Artificial Intelligence and machine learning To predict the farmer distress , rise in NPA →
remedial measures. (Ref: Pillar-1B2)
- Encourage digital payments → Kisan credit card. This will reduce the need to branch visits.
- Blockchain Technology (Ref: Pillar-1A1)
✍️ Conclusion:
• Without loans, farmers cannot adopt innovative farming practices, new tools, and
machinery.
• Informal money lenders charge exorbitant interest rates and engage in illegal and brutal
recovery methods, resulting in farmer suicides.
• So, need to improve financial inclusion on a war footing.
43.6.2 Shd we give loan-wavers to farmers?
This is covered in (Ref: Pillar#1D) financial inclusion segment.
43.6.3 Agri Insurance problems?
This is covered in (Ref: Pillar#1D)

44 🌽🔥 A GRI-OUTPUT

44.1 🌽🛒🤲👨‍🌾A GRI-SELLING → WHY SUPPORT FARMERS?

 Situation Assessment Survey (SAS) of agricultural households conducted by the Ministry of
Statistics & Programme Implementation (MOSPI)→ National Statistical Office (NSO). स्थिति
आकलन सर्वेक्षण
 Latest Report covers timeframe of 2019. It was published in 2021. Notable Findings →

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 agriculture household monthly income has ↑ from ₹ 6426 (in 2014) to ₹ 10218 (2019) (एक
भारतीय किसानप परिवार की औसत आमदनी मुश्किल से 10,000 रुपये प्रतिमाह है).

 Fragmentation of land holding has ↑ . Average size of a farm reduced from 0.725 hectare (2003)
to 0.512 ht (2019) (ज़मीन का भी खं डन हो रहा है. खेत की औसत आकार कम हो रही है.)
- 📔📔ES2018 noted: Climate change’s negative impact is twice on unirrigated farms than
irrigated. With higher temperature and shorter rainfall: income fall will be 15-18% (for irrigated
farm), 20-25% (for unirrigated farm). जलवायु परिवर्तन से उत्पादकता को खतरा
- Modi-govt has target of doubling the farmers income (from base year 2015-16) in 2022-23. But
for that agricultural sector must grow at 10% annually whereas it’s struggling to grow even @5%!
Therefore, Govt. intervention is necessary in the form of subsidies, procurement, MSP and
minimum income support (PM-KISAN@6k/pa). इसलिए सब्सिडी विपणन न्यूनतम समर्थन मूल्य न्यूनतम आय
समर्थन के रूप में सरकारी हस्तक्षेप जरूरी

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44.1.1 Agri Selling→ APMC Nuisance
 😥Cartelisation by Mandi merchants
 😥Farmer deprived of remunerative prices → forever in debt cycle. किसान को अच्छी कीमती नहीं मिलती
इसलिए हमेशा कर्जे में डूबा
 Can't invest in better seeds / fertilizer / machinery. वह अच्छे किस्म के बीज उर्वरक और मशीन खरीद नहीं पाता
 😥Consequently agriculture sector struggling to get even 4% annual growth जिसके चलते कृ षि उत्पादन
में बढ़ोतरी नहीं हो रही
 😥APMC caused food inflation because: खाद्य चीजों में महंगाई के लिए भी जिम्मेदार
 Large number of intermediary /middleman commission
 Mandi tax and fees get added. Cartelisation & hoarding.
 lack of hygiene / proper storage → wastage of food.
 Shortage of food + commissions + profiteering → Food inflation
 Indeed the bottlenecks in APMC had been the cause of under development of agriculture and
rising food inflation.
 during Corona → APMC ordinance/Act was also issued. It had to be withdrawn because of the
protest of farmers. Need of the hour is to fix this on war footing
 Hopefully this will help in a long way to address the challenges and double the farmers income

44.2 🌽🛒🤲👨‍🌾 A GRI-SELLING → MSP & CROP DIVERSIFICATION

Under the State APMC Acts, the first sale of agriculture commodity can occur at Agricultural
Produce Market Committee (APMC) Mandis only. However, a farmer may not get remunerative
prices at the Mandi due to following reasons:
1. Bumper production /↑ supply =market prices↓ (आपूर्ति बढ़े: दाम गिरे) AND / OR
2. Cartelization / price-fixing by the mandi-merchants.

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So, to protect the farmers, Government of India announces MSP (न्यूनतम समर्थन मूल्य) before each crop
sowing season. (यदि किसान को मंडी में अच्छी कीमती ना मिले तो सरकार को बेच सकें )
Critiques argue that due to MSP policies, farmers are encouraged to grow mostly sugarcane, rice and
wheat, which creates 1) water shortage 2) supply-shortage of other crops. (सरकार की न्यूनतम समर्थन मूल्य
नीतियों के चलते ज़्यादातर किसान गन्ना-गेहूं-चावल लगाना पसं द करते हैं जिससे पानी की बर्बादी, अन्य फसलों की क़िल्लत होती है.)

 So, to encourage crop diversification, govt is giving MSP @more than 50% of Cost Price for
certain crops e.g. mustard (100%), Masur (70+%), barley (60%) (इसलिए सरकार ने कु छ फसलों पर किसान
की लागत ख़र्च के ऊपर 50% से भी अधिक एमएसपी जारी किया है)
44.2.1 MSP → Crop Diversification → Millets

 Benefits? - 😍1) crop diversification. 2) water & soil conservation 3) improve farmers income. 4)
self-sufficiency in pulses and oilseeds → inflation control, food and nutritional security.
 Conclusion: yes we should ↑ millet cultivation for SDG goals (poverty, malnutrition).
Considering these benefits, Government has launched the dedicated sub-mission for millets
under the Green revolution - Krishonnati Yojana. UN/FAO also organizing international year of
millets. Budget 2022 also announced initiatives.

44.3 SELLING: FCI – FEATURES, CHALLENGES, REFORMS

44.3.1 🌽👨‍🌾📦📦🕵🏽: 😥 FCI → Problems (समस्याएं )
 Due to electoral populism, successive Governments kept ↑ MSPs → MSP is no longer
‘minimum support price’ but rather maximum offered prices as rarely any private trader is

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 matching that amount. Consequently, 80-90% of rice and wheat in Punjab-Haryana is procured
by FCI only. (लोकलुभावन मे सरकार ने एमएसपी इतना बढ़ा दिया है की निजी व्यापारी उतनी कीमत देने के लिए अक्षम है)
 This discourages private sector to undertake long-term investments in procurement, storage
processing of commodities. (निजी व्यापारी खाद्यान्न भं डारण और प्रसं स्करण में निवेश करने के लिए हतोत्साहित हो जाते हैं)
 2019: Food Corporation of India’s (FCI) godowns are overflowing with three times the buffer
stock requirement. So 1) started Open market sale. 2) exploring to donate it to the poorest
nations of the world. (क्षमता से अधिक भं डारण ) 😰
 FCI forced to spend a large amount of ₹₹ for acquiring, storing and distributing foodgrains. But
the Government is not releasing subsidy / funds to FCI in a timely fashion. FCI is forced to
borrow money. ( 📑Ref: Pillar2: fiscal deficit → EBR)
 Thus, Govt Intervention has hurt more than it has helped. (सरकारी दखल से यहाँ पर मदद कम, और तकलीफ
📔📔ES20Vol1ch4 recommended following →
ज्यादा हुई है!), so
44.3.2 🌽👨‍🌾📦📦🕵🏽 FCI → Solutions by 📔📔ES20
 National Food Security Act (NFSA:राष्ट्रीय खाद्य सुरक्षा अधिनियम): It aims to subsidized foodgrains to
67% of Indian population. (LATER ON made FREE under PM Garib Kalyan ANNA Yojana)
 We should reduce the number of beneficiaries to bottom-20% poorest Indians.
 For ‘relatively less poor’ people, Govt should charge slightly higher prices. (More about NFSAin
Pillar6 → Malnutrition).

 Conditional Cash Transfer Schemes (सशर्त नकदी हस्तांतरण योजनाएं -अन्य देशों की तरह हम भी ये करें)
 Brazil (Bolsa Familia), Mexico (Oportuni dades), Philippines (Pantawid Pamilyang).
 Here poor families given money to buy (non-subsidized) foodgrains from market.
 We should explore similar ways of giving cash/food coupon/smart cards to ↓ FCI’s
procurement and stock keeping burden.
 Implement Shantakumar panel report. – u can read more about it here
https://mrunal.org/2015/02/shanta-kumar-report-fci-restructuring-buffer-stock-food-
security.html
44.3.3 🌽🛒🤲👨‍🌾 Agri-Selling → MSP → FCI Procurement (अधिप्रापण / खरीद)?

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 Note: for 2023 NFSA 5kg foodgrain is made free under PM Garib Kalyan Anna Yojana.

44.4 🚛 AGRO-S ELLING: FCI BUFFER STOCK (PYQ-2024, 15M, 250W)

Q.Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the
challenges associated with the storage of buffer stock? Discuss. भारत में कृ षि कीमतों के स्थिरीकरण के लिए
सुरक्षित भं डार (बफर स्टॉक) के महत्त्व को स्पष्ट कीजिए। बफर स्टॉक के भं डारण से जुड़ी चुनौतियाँ क्या है? विवेचना कीजिए।
44.4.1 🚛 Intro
• (Origin) Food Corporation of India (FCI), a statutory Corporation is primarily responsible
for the maintenance of bumper stock of Food in India. FCI also utilise the help from central
warehousing Corporation and state level agencies as well as private warehouse owners.
• (Data) 2023: FCI has total storage capacity of ~740 LMT, out of which ~300–400 LMT is
filled with food. [not possible to memorise this in real life.]
44.4.2 🚛Importance of buffer stock
• is required for food security,

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 • to ensure monthly release of food-grains for the Targeted Public Distribution System
(TPDS), Other Welfare Schemes e.g. PM POSHAN for school-kids.
• to meet emergency situations e.g. unexpected crop failure, natural disasters, festivals, etc.,
• to control the prices in the open market.
44.4.3 🚛 challenges with buffer stock
• There is an economic cost / subsidy burden involved in storage of food.
• In some years, government did not release the subsidy on time to FCI, and then FCI was
forced to borrow money from NSSF fund. e.g. ₹70,000 cr in 2018–19. This is called extra
budgetary resources (EBR) and it is harmful for public finance discipline, and also criticise
by the 15th finance commission.
• critics argue, FCI is storing unreasonably of large quantity of buffer, which gets rotten by
heat, humidity, lack of maintenance of the godown.
• procurement of food grain is concentrated mostly in North-Western States. So the farmers in
other states have not benefited economically much out of this buffer-keeping exercise.
• 2023: Excessive export of wheat/rice after Russia Ukraine war and Indian government failure
to curb such exports in timely fashion → food inflation in the local market → FCI required
to sell open market to control prices→ buffer fell.
• 2024: Buffer is below the required level. So need for a more robust monitoring and
mathematical modelling of the supply and demand.
✍️ 🚛 Conclusion: Thus, it is essential to maintain a buffer of food stock to ensure food security for
poor people, but at the same time, need of the hour for better monitoring and calibration of how
much grains actually need to be kept- for more efficient use of subsidy and storage space.
Note: more about PDS/food security (Ref: Pillar#6-QEP Malnutrition)
44.5 🧸📈 A GRI-SELLING: COMMODITY / FUTURE / DERIVATIVES MARKET
Year Event
1940 India had around 300 commodity exchanges
Forward Market Commission (FMC) was setup to regulate commodity exchanges
1952–53
(2015: FMC merged with SEBI after NSEL-scam)
Agriculture futures trade in India got a major push with setting up of National
exchanges such as the National Commodity and Derivative Exchange (NCDEX),
Early-2000s
Multi Commodity Exchange (MCX), and National Multi Commodity Exchange
(NMCE).

44.5.1 🧸📈 Commodity-futures market: Challenges

• Most Indian farmers lack financial knowledge / large crop-production to participate in
commodity market. → Reduced depth in the Indian commodity futures market.
• Indian farmers produce different varieties of commodities in widely varying qualities due to
varied geographical, weather, and soil conditions. So difficult to write standardised contracts

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 with specified quality parameters and delivery requirements → discourages international
traders from participating.
• periodic/random bans imposed by Govt on commodity trading to counter food inflation. →
it discourages traders and investors from participating.
44.5.2 🧸📈 Commodity-futures market: Way forward/ suggestion
• Sensitive commodities (e.g., common rice, wheat, most pulses, etc.) may be kept outside
futures market until the markets are developed and the regulator has a higher degree of
comfort.
• agriculture futures market may focus on less sensitive commodities like oilseed complex
(oilseeds, meals, and oils), cotton, basmati rice, spices, etc.
• regulators should provide clear direction by adopting a stable policy with minimal
interventions. Trading should not be banned unless there is data- backed evidence of huge
inflation/price volatility.
• As the depth and liquidity in the commodity market increases in the long -run → n banning
futures trading may no longer be required to control inflation.

44.6 🍅📈🤯A GRI-SELLING: FOOD INFLATION FOR CONSUMERS

(Intro-Origin) With green revolution, we became self-reliant in cereal production. But perishable
fruits and vegetables have remained our Achilles’ heel. Seasonal spikes in onion, tomatoes & pulses is
a recurring nightmare for middle class families of India. The underlying causes as following:
1. Demand Side: Growth of middle class & their disposable incomes → ↑ demand of
fruits/veggies than before.
2. Supply Side: shortage of commodities on account of 1) poor monsoon & pests 2) post-harvest
losses due to unavailability of cold-storage & warehousing 3) hoarding (सं ग्रहखोरी/काला-बाजारी).

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Refer to Prelims Handout for the description of above mindmap.

44.7 📕ES24 ON FOOD INFLATION

Food-item Steps by Govt ES: Solution
- Banned Export in 2022. Imposed stock limits in
2023-24.
- Government introduced Bharat Atta at a
subsidised price of ₹27.50 per kg to make it
Wheat/Atta affordable for consumers. N/A
- FCI sold Wheat and rice in open market.
- Extended Pradhan Mantri Garib Kalyan Anna
Yojana for 5 years from Jan-2024. (5kg foodgrains
for 81 cr beneficiaries)
- Banned export of rice (2022-23)
- imposed a 20% customs duty on export of
parboiled rice (2024)
Rice/Paddy N/A
- Govt selling Bharat Rice at a subsidised price of
₹29 per kg for selling through NAFED etc
government agencies.

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Food-item Steps by Govt ES: Solution
- India faces a persistent deficit in
pulses and consequent price
pressures.
- Removed customs duty on imports of tur, urad, - Production of pulses is
masur daal. concentrated in a few states, and
- Govt selling Bharat Dal at highly subsidised rate, is vulnerable to biotic and abiotic
from its buffer stock. stresses.
Pulses - India imported considerable quantities of Tur - Need to expand the area under
(mainly from Mozambique, Myanmar, Tanzania, pulses, particularly lentils, tur,
Sudan and Malawi), Masur (mainly from and urad, in more districts and
Australia, Canada and Russia) and Urad (mainly rice-fallow areas
from Myanmar) in 2023-24. - Need to promote the summer
cultivation of urad and moong in
areas with assured irrigation
facilities.
- domestic consumption of edible
oils has been increasing faster
than production, leading to
increased import dependence &
inflation. (50% of local demand
met via imports)
- Need to increase the production
- Govt Reduced the custom duty and cess on of major oilseeds such as
Edible oil import of palm oil, soyabean oil, and sunflower sunflower and rapeseed &
oil. mustard,
- Need to promote non-
conventional oils such as rice
bran oil and corn oil.
- Need to add more crops in
National Mission on Edible Oils -
Oil Palm (NMEO-OP) apart
from palm oil.
Vegetables 2023: Onions pe placed a Minimum Export Price - Need to to improve the storage
and later banned its export. However, 2024- and processing facilities for
export-ban lifted. tomato and onions.
- The high-frequency price
monitoring for essential food

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 Food-item Steps by Govt ES: Solution
items collected
- ref mindmap given above.
Sugar - banned export of sugar (2023-Oct) N/A
Conclusion: Vegetables & pulses are rich source of vitamins and nutrients. They’re part of large
varieties of Indian and international cuisines. Therefore, food Inflation is a matter of concern for (1)
nutritional security in India and (2) India’s export competitiveness. Hence aforementioned factors
need to be addressed on priority basis. (पोषण सुरक्षा, निर्यात में प्रतिस्पर्धा के लिए अग्रता क्रम से यह सुधार जरूरी)

45 🌾C ROPPING PATTERN

- (Definition) Cropping pattern in India refers to the proportion of land under cultivation of
different crops at different points of time. ( फ़सल पैटर्न यानी की देश की कु ल ज़मीन में विविध समय और स्थान पर
किस क़िस्म की फ़सलें उगायी जाती है)
- It is a dynamic concept that changes over space and time, depending on a variety of factors, such
as rainfall, climate, temperature, soil type, technology, and government policies. (वर्षा, आबोहवा,
तापमान, ज़मीन का प्रकार, प्रौद्योगिकी, और सरकारी नीतियों सहित अनेक कारकों पर यह निर्भर है)
CROP AREA MILLION HT. CROP AREA MILLION HT.
RICE 43.9 JOWAR, BAJRA, MAIZE 24
WHEAT 30.28 COTTON 12
PULSES 29 SUGARCANE 4.7
OILSEED 26 JUTE 0.7
45.1.1 🌾 Cropping pattern notable points
CROP COMMENT
RICE AND WHEAT Two Highest. Because, of MSP.
Alternating pattern. Some years high, some years low, due to COBWEB
PULSES
phenomenon.
area declined compared to earlier years due to excess supply in world market
SUGARCANE and fall in prices. And Sugar mill owners arrears (pending payments) to
farmers.

area declined Post-subprime crisis → Slowdown in textile sector. → reduced

COTTON
demand for cotton

45.2 🌾C ROPPING PATTERN: GREEN REVOLUTION

(PYQ-Opt-Eco'23) (Examine the impacts of Green Revolution on production and productivity in the
agriculture sector. (कृ षि क्षेत्र में उत्पादन और उत्पादकता पर हरित क्रांति के प्रभावों की जांच करें।)

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- (Definition:) Green revolution refers to the large ⬆ in food production Using High Yielding
Variety (HYV) of hybrid seeds.
- (Origin) carried out in two phases from mid 60s to mid-1980s.
45.2.1 🌾
Green Rev: impact on production
• Post-Green Revolution, India became net exporter of wheat and rice.
• Green revolution improved the income of farmers. Consequently, they could purchase the
better quality of machine, seeds, fertiliser and now India is ranked among the top producer
of wheat, rice, sugarcane and other major food and dairy items.
45.2.2 🌾
Green Rev: impact on productivity
• Significant increase in productivity. Farmers were able to produce more output per unit of
land, labor, and other resources.
• Although, we are still lagging behind the global average for example
Crop India's Yield (kg/hectare) Global Average Yield (kg/hectare)
Rice 2191 3026
Wheat 2750 3289
The situation is also not much confidence inspiring in other crops such as pulses and oil seeds.
45.2.3 🌾 Green Rev: other +ve and negative
Green Rev: Positive ✋🚨 Negative / challenges / limitations
improved income of farmers • but not for all farmers across India. Use of HYV seeds was
किसानों की आमदनी में बढ़ोतरी खाद्य restricted to the more affluent states
सुरक्षा में बढ़ोतरी आयात पर निर्भरता कम • such as Punjab, Haryana, Andhra and Tamil Nadu.
होगी खाद्य महँगाई कम हुई • The farmers in other states have not benefited as much
esp. in the Eastern India.
• This has increased the inequality of income of a farmer.
improved food production At the expense of groundwater, exploitation, and soil pollution
through over use of urea.
improved food security. But not improved nutritional security India still legs behind in
global hunger index.
reduced import reliance We are still import independent on edible oil.
Help reducing inflation in But not solved the shortage/inflation in pulses, vegetables - onion,
foodgrains. tomatoes and edible oil.
neglect of local knowledge and traditional farming practices -
which are more sustainable.
Reduction/Loss of genetic diversity due to use of hybrid and
genetically modified varieties

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45.3 🌾C ROPPING PATTERN: GREEN REVOLUTION FAIL IN EASTERN INDIA. WHY?
(PYQ-GSM1-2014) Why did the Green Revolution in India virtually by-pass the eastern region
despite fertile soil and good availability of water? उपजाऊ मिट्टी और पानी की अच्छी उपलब्धता के बावजूद पूर्वी क्षेत्र मे
हरित क्रांति क्यों बेअसर रही?

- (Definition:) Green revolution refers to the large ⬆ in food production Using High Yielding
Variety (HYV) of hybrid seeds.
- (Origin) carried out in two phases from mid 60s to mid-1980s. Green Revolution in India
virtually by-passed the eastern region (Bihar, Jharkhand, Odisha and West Bengal) due to
following reasons:
45.3.1 🌾 Natural obstacles in Eastern India against Green Revolution
ASPECT ISSUES

in the Brahmaputra & other rivers: → crop destruction → farm

FLOODS distress. Little surplus income to invest in next crop cycle → Informal
moneylender → debt trap.
CYCLONE Bengal, Odisha
Odisha, Jharkhand & Bengal: Jungle and hilly region= here large sized
TERRAIN
tractors and machinery can’t be used

45.3.2 🌾 Manmade obstacles in Eastern India against Green Revolution

- High level of poverty and illiteracy → rampant corruption, nepotism and maladministration in
the civil services and politics. → SC/ST farmers deprived of government schemes’ benefits.
- Bihar & Bengal: high level of Total fertility rate and population density → fragmented land
holding → farm mechanization/investment/innovation difficult.
- W.Bengal: 1970s: inflow of refugees during Bangladesh Liberation war of 1971. Rise of left wing
extremism / Naxalite movement, frequent bandh and blockades.
- Jharkhand, Odisha: Tribal farmers: Land ownership rights, access to banking and credit services
- LWE/Corruption: Spread of agriculture extension service, APMC mandis, contract farming,
ability to sell the produce at remunerative prices = underdeveloped.
- Private sector investment, food processing industries could not develop, UNLIKE
Punjab/Haryana during same era.
- Road, electricity, transport and communication= poor infrastructure
- Poor electricity connectivity → irrigation issues.

45.3.3 🌾 ✍️ Conclusion: Green revolution fail in Eastern India

- Eastern India is highly suitable for large scale production of cereals, pulses, oil seeds due to high
rainfall and moisture content in the soil, Supply of cheap labour available.

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- Great potential for Horticulture, floriculture, mushroom, honey, bamboo and allied activities.
- IF coordinated efforts by Union, State Government and private sector
- Can help boosting peace, prosperity, employment and economic growth in the Eastern India
- SDG GOAL 8: Decent Work and Economic Growth. SDG Goal 10: Reduce Inequalities within
the country.
45.4 🌽C ROPPING PATTERN: RICE AND WHEAT- BOON AND BANE
(Data) India is world’s largest exporter of rice and second largest producer of wheat. Rice and wheat
account for the largest area under cultivation in India.

45.4.1 🌽😍 Reasons for success / why Farmers like WHEAT/RICE?

- Green revolution - availability of the high yielding hybrid varieties.
- Easier availability of the fertilisers, pesticides, pest control advisory and extension services
required for wheat and rice (compared to mushroom or dragonfruit)
- Easier availability of loan and insurance, and flood compensation by government.
- Regular Procurement by the government under Food Corporation of India (FCI)
- Longer shelf life compare to fruits and vegetables.
- Rice-wheat stock also required / helps in self consumption / food security for the family.

45.4.2 🌽😰Rice and Wheat - BANE / challenges

- Monoculture → nutrition decline. → yield decline → Farmer compare to invest more and
more in fertilisers → fertiliser overuse = new set of problems for economy and environment.
- Punjab Burning of the crop residue → air pollution in Delhi.
- less area under cultivation for pulses, horticulture → food inflation.

45.4.3 🌽✍️ Conclusion: wheat rice - grow less

- Yes, we require wheat and rice for food security and inflation control but at the same time need
to promote diversification towards pulses, horticulture, millets.
- This will help in a long way for food security/inflation control for public, Income security for
farmers, and environmental conservation for the nation.
45.4.4 📕ES24: Crop diversification: RICE vs crop-neutral incentive structures
• India is largest export of rice (2022–23). But, exporting 20 Metric Tonnes of rice means
exporting 40 billion cubic meters of water.
• Food Corporation of India currently has rice stocks that are more than three times the buffer
stock norm.
• Excessive production of rice results from large subsidies for power for irrigation, water, and
fertilisers.
• Govt should promote ‘crop-neutral incentive structures’. In simple terms, Government
should give more subsidy/MSP towards pulses, oilseeds, and millets - bcoz they save more
electricity, water and fertiliser compared to rice. (फसल-तटस्थ प्रोत्साहन सं रचनाएं )

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45.4.5 🌾-🍚 De-hyphenating rice-wheat
BEFORE AFTER
• dietary preference of the Indian is changing
the demand for wheat increasing higher than
• Excess production of wheat-rice rice. (due to fast food culture, cake, bread,
both are bad. They are responsible biscuits etc requiring refined flour/maidaa.)
for overuse of fertiliser, crop • After Russia Ukraine war, Ukraine could not
residue burning and air pollution. supply enough wheat to the world, India
• We should discourage both excess exported too much wheat → shortage in
cultivation of both wheat and rice. local market, wheat flour getting expensive.
• So we should encourage wheat cultivation.
And discourage excess-rice production
गेहूं और चावल दोनों की अत्याधिक खेतीबाड़ी को प्रोत्साहित
गेहूं की माँग बढ़ रही है उसकी ज़्यादा खेतीबाड़ी करो। चावल की खेती कम
मत करो, क्योंकि उसे उर्वरक-दुरुपयोग, पराली जलाने से
करो। यानी अब गेहूं और चावल की फसलों को अलग अलग दृष्टि से देखा
वायु प्रदूषण की समस्या हो रही है।यानी कि दोनों फसलों को
जा रहा है।
एक साथ नकारात्मक दृष्टि से देखा जाता था।
45.5 🫕C ROPPING PATTERN: MILLET CULTIVATION- PROMOTE WHY?
- Can grow even with water shortage, less fertile land.
- Small marginal farmers can benefit.
- Less exploitation of groundwater table compared to rice and sugarcane
- Health benefits of millets. cheap yet nutrient.
- Immunity Boost, Weight Control, Diabetes.
45.5.1 🫕
Millet promotion: Government measures
- Government giving higher MSP on millets.
- Government has launched the dedicated sub-mission for millets under the Green revolution -
Krishonnati Yojana
- Government notified Millets as Nutri-cereals in April 2018. Under the National Food Security
Mission (NFSM), millets have been introduced to provide nutritional support.
- Funding for research on millets.
- 👛Budget-2023: we grow several types of ‘Shree Anna’ such as kuttu, ramdana, kangni, kutki,
kodo, cheena, and sama. we’ll give the funding to Indian Institute of Millet Research, Hyderabad.
It is an org. under under Indian Council of Agricultural Research (ICAR).
- UN/FAO also organizing international year of millets.

45.5.2 🌽🤝
International Year for Millets (2023)
 United Nations General Assembly, in its 75th session during March 2021, declared 2023 the
International Year of Millets (IYM)
 India’s millet production accounts for 80% of Asia and 20% of global production.

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 GLOBAL INDIA
Avg. Yield (kg/ha) 1229 1239
Thus, India’s yield is higher than Global.

45.5.3 🌽🤝 MILLETS: MAHARISHI

- Millet and other Ancient Grains International Research Initiative (MAHARISHI)
- At G20 Summit-2023 → meeting of agricultural chief scientists (MACS)
- HQ: Indian Institute of Millets Research (IIMR) in Hyderabad
- for research-development, awareness-generation etc.

45.5.4 ✍️ Millets Conclusion:

TEMPLATE KEYWORDS

↑ Millets production for Farm income↑ , Food

X THING IMP
security, water conservation, Malnutrition ↓
BUT, Y THING CREATING PROBLEM excess focus on sugarcane, cotton even in arid regions.
THEREFORE, Z1 IS NEED OF THE
millet promotion
HOUR OR
THEREFORE, Z2 DONE BY THE
various scheme is mentioned in the body.
GOVERNMENT IS APPRECIABLE
income security to small farmers in arid regions and
IT WILL HELP IN A LONG WAY TO
SDG Goal Zero Hunger.

45.6 🍏C ROPPING PATTERN: HORTICULTURE

Government's National Horticulture Mission: provides high-quality seeds and planting material,
extension service /guidance/ training /capacity building, market linkage, etc.

So, horticulture crops’ Area under cultivation improved, quantity of horticulture production
improved.

But not enough corresponding increase in the income of farmers due to following reasons:
- 😰Horticulture crops are more sensitive to climate and pests.
- 😰small sized farms, 😰debt traps
- 😰low adoption of modern technologies
- 😰APMC mandi- Lack of remunerative prices vs perishable nature of the product. So farmer is
forced to sell even at unreasonable price, lest the produce gets spoiled.
- 😰e-NAM online trading platform to connect the 500+ APMC mandis has not yet become fully
operational.

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- 😰Government’s random ban / restrictions on export price of onions to control inflation. [refer
to the food inflation section.]
- 😰Random bans by USA / EU using SPS agreement [explained in the next section]
45.6.1 🍏😰Horticulture: Random bans by USA / EU using SPS agreement
WTO’s Sanitary and phytosanitary (SPS) agreement the member-countries to ban imported
products to protect human/animal/plant health from pests, diseases, or contaminants. India has been
at the receiving end of such bans in USA and European Union.

Year USA/EU Banned Reason for ban

Indian mangoes, bitter gourd,
fruit fly infestations and possible spread of this insect
2014 snake gourd, egg plant, and taro
in their country
leaves
2012 Indian basmati rice Pesticide residues
2014 Indian shrimp Antibiotic residues
Aflatoxins. Aflatoxin is by certain molds. These molds
2015 Indian pulses can grow peanuts, soybeans etc & linked to liver
cancer.
Bovine spongiform encephalopathy (BSE), also known
2017 Indian buffalo meat
as mad cow disease.
2018 Indian grapes Pesticide residues
2020 Indian organic products Chemical residue
Once a ban is imposed,

- it takes 2 to 3 years to get the ban lifted, after a lengthy legal and scientific representation and
inspection-tours by the foreign nation’s food-drug officials to India.
- Political lobbying by the local American/European farmers/fishermen against the Indian
agriculture/marine produce = further delay in ban-lifting.
- Indian farmers suffer the most after such bans, because the Indian exporter/trader can switch to
doing business with another commodity (e.g species, tea, onions, etc.), but it takes many months
for the farmer to switch to another crop.
45.6.2 Cropping-Methods: Vertical hydroponic for Tomatoes/vegetables suggested by ES24 📕
• Hydroponics = growing plants in nutrient-rich water solutions customized without soil.
• Vertical hydroponic systems can be employed in urban areas
• Benefits? reducing the GHG emission from truck-transport , space efficiency, reduced water
usage, year-round production=inflation control.

45.6.3 🍏✍️ Conclusion: horticulture challenges

TEMPLATE KEYWORDS
X THING IMP Farm income↑ , Fruit veggies supply↑ → inflation ↓ ,

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 Malnutrition ↓
BUT, Y THING CREATING
aforementioned issues faced by the horticulture farmers
PROBLEM
R&D for climate and pest resilient horticulture, market
THEREFORE, Z1 IS NEED OF
reforms, SPS compliance, training and capacity building to
THE HOUR OR
adopt new cropping / farming methods.
THEREFORE, Z2 DONE BY THE
GOVERNMENT IS National horticulture Mission
APPRECIABLE
IT WILL HELP IN A LONG WAY
double the farmers income and SDG Goal Zero Hunger.
TO
45.7 🪿CROPPING PATTERN: INTEGRATED FARMING SYSTEM (IFS) एकीकृ त खेती प्रणाली
- Define: It is the judicial mixing of two or more components of farming to improve the income of
farmer and simultaneously, to improve the sustainability of the environment. (दो या उससे ज़्यादा
क़िस्मके कृ षि-घटकों/एकमो को एक साथ करना, ताकि आय बढ़े, और पर्यावरण की रक्षा हो)
- For example: farmland (Wheat) + farm pond (Duck + fisheries) Wheat feed to duck → Duck
dropping → food for the fish → Fish production is improved.
- Farm: Cattle fodder → cow dung → manure → mushroom growing.
- IF farmer has 1 ha land, and growth Rice (0.78 ha) + horticulture (0.14 ha)+ dairy (2 cows) +
goat (11 no’s) + fish (0.1 ha) + ducks (25 no’s) + boundary plantation of fruit trees = min ₹ 13k
monthly income to max. ₹57k in some months.
45.7.1 🪿IFS: benefits एकीकृ त खेती बाड़ी प्रक्रिया में फायदे लाभ
- Multiple activities are being done and used as input for each other →Synergy → Less
requirement of chemical based inputs, low cost, debt burden reduced.
- Sustainable soil health improvement through recycling.
- Risk reduction: buffer income from egg, fish, milk during adverse weather and pest attacks.
- Nutritional security for the farmers family - eggs, meat, fish as a protein source.
- Ultimately, Every farm household becomes self-reliant in 6F’s (Food, Fodder, Feed, Fuel, Fibre
and Fertilizer).
45.7.2 🪿IFS: challenges एकीकृ त खेती बाड़ी प्रक्रिया में चुनौतियां
- While integrated farming system can help improve the income and nutritional security of
farmers, however it is not free of challenges such as:
- Financial constrains: small and marginal farmers cannot afford large cattle so we have to
encourage small ruminants such as goats and sheep- says ES19
- There is hesitation among the farmers in non-coastal areas to adopt fisheries/ pig / poultry / duck
rearing because 1) lack of role models 2) religious perceptions.

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- Mushroom farming and beekeeping - They are not covered under the minimum support price
system. Better integration with the food processing industries and hotel Industries therefore
necessary.
- extension services to build the skills and capacity of farmers.

✍️ Conclusion: Thus, if aforementioned challenges are addressed, Integrated Farming System (IFS)
can greatly help Government’s target of doubling of farmers' income by the year 2022, and / OR
- SDG Goal# 2: aims for Zero hunger by 2030, but, through sustainable food production systems and
climate resilient agricultural practices (Chemical farming se nhi). Integrated Farming System (IFS)
will prove a to be crucial tool in this regard.

45.8 MODERN CROPS/ FARMING TECHNOLOGY: OBSTACLES IN ADOPTION

Method Obstacles
Micro irrigation trampling by wild animals. Repair man not easily available. Not covered
under crop insurance.
precision Requires expensive instruments like UAV / Drones, Remote sensors to
farming/smart measure temperature, humidity etc, smart collars & ear tags for animals,
farming GPS devices etc. All of these are not easily available in Indian market for
purchase. Poor farmers cannot afford it, and not easily available for rent
Mechanized small sized Farms. North east farms require different type of machinery due
farming to elevation & rain, but less R&D on that.
Honey bee bees requires variety of flowers but climate change, sudden rains and
drought affecting the flowering. 2) monoculture agriculture = flowers not
available easily. 3) Improper pesticide use by neighbors = bad for bees. 4)
wild animals trampling / Honey theft.
Emu bird rearing Refer to animal husbandry section
45.8.1 🌵Case Study: Jatropha - a failed start

- 2008: Reliance, Essar, Indian Oil Corporation et cetera started buying / renting large swathes of
wastelands in Gujarat, Maharasthtra and MP for growing Jatropha for blending with diesel.
- This also created some craze among farmers in arid-wasteland regions to grow Jetropha.
- But it failed giving profitable results due to following problems:

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- Govt kept extending the deadline for compulsory biofuel blending with diesel/petrol.
- So there was no compulsion on the oil refineries to purchase jetropha / conduct extensive
research development / purchase on this.
- While it is true that Jatropha can survive without much water but then its crop will not have high
quantity of oil. So farmers/companies who started growing without water = not enough oil = not
profitable.
- Jetropha seeds toxic for animals. Many cases of cattle / goat dead due to non-awareness.
- some companies got the wasteland from government, at a concessional price for the biofuel
cultivation, but later on outward expansion of big cities = they converted it into real-estate
projects.
45.8.2 🧵🪡 Case Study: Bt-Cotton
- 2002: BT cotton was introduced in India. Farmers made decent money by switching from
traditional cotton to BT cotton crop.
- 2007–08 subprime crisis: International cotton textile prices collapsed.
- Bt-Cotton needs more irrigation water than normal cotton. So on one hand, cotton prices
collapsed but electricity and diesel prices remain constant = losses for farmers.
45.8.3 🪷 Case Study: Dragon fruit

- after planting the seeds, it will take 3 to 5 years before the tree grows up and delivers fruits. So if
farmer wants to adopt this crop, he’ll need savings to survive for this long time without planting
other crops.
- Financially remunerative, if only the farmer has connect with the elite customers / direct to home
grocery Apps/ gym training, dieticians and doctors (who can recommend the patience to
consume it for health benefits). Because if farmer tried to sell it in the normal bazaar / mandi
then he may not get the right price or right customers

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45.8.4 🪷 long gestation period / fear of unknown / lack of patience
Indian farmers are familiar with Rabi Kharif seasonality, harvest season and MSP of rice and wheat.
But adopting new cropping patterns = different set of seasonal cycles. So there is a “fear of
unknown” / lack of patience- which deters the farmer from adopting new crop / farming / income
generating activities.

PRODUCT GESTATION PERIOD

EMU BIRD After an emu bird lays eggs, it’ll hatch it for 50 days. Until then
EGGS bird will not lay more eggs.
after setting up the cage, it takes 3 to 6 months before the honey
HONEYBEES
is produced
MUSHROOM premium varieties can take up to 3 months to grow.

45.8.5 👿 Law and order कानून व्यवस्था /एससी एसटी के खिलाफ़ अत्याचार
- When a poor farmer from a marginalized community tries innovative farming techniques such
as cultivating dragonfruit, raising mushroom-honeybees, or incubating emu bird eggs, they often
face the unfortunate reality of jealous neighbors or powerful individuals sabotaging their efforts
by stealing or destroying their crops or livestock during the night. Unfortunately, seeking justice
in such situations is usually challenging, if not impossible.
- As a result, these incidents serve as discouragement for farmers from marginalized communities
to embrace and implement new agricultural practices.
✍️️Conclusion: need of the hour is to address aforementioned challenge - to ensure that farmers
adopt new cropping patterns & farming technologies to double their income and contribute in the
national food security and in combating food inflation control. (नई किस्म की फसलें और आधुनिक खेती तकनीक
के अपनाना जरूरी है ताकि किसान की आमदनी बढ़े भारत की खाद्य सुरक्षा बढ़े और महंगाई नियं त्रण में रहे)

45.9 PYQ: GSM3–2023-ECOQ: CHANGE IN CROPPING PATTERN (15MARKS)

• Explain the changes in cropping pattern in India in the context of changes in consumption
pattern and marketing conditions. (खपत पैटर्न एवं विपणन दशाओं में परिवर्तन के सं दर्भ में, भारत में फसल प्रारूप
(क्रॉपिंग पैटर्न) में हुए परिवर्तनों की व्याख्या कीजिए।)
• Context: recurring themes in the newspaper, columns and economic surveys: need to
improve crop diversification, excess reliance on edible oil import, sugarcane and rice
resulting in water depletion, need to promote millets.
45.9.1 Intro
• (Data) in India, majority of the agriculture land is utilised for cultivation of rice, wheat,
pulses, minute, oilseeds, and sugarcane.
45.9.2 Body: Area increased by marketing
• Tobacco: increase the consumption due to glamorised ads (marketing conditions). 2023:
Gujarat’s tobacco acreage up by 116% in last 2 decades!

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 • Coffee: even in non-traditional areas such as Himachal 4x jump in area under cultivation.
Reason: (1) marketing by Coffee-shops, Coffee-day /Starbucks (2) Consumption:
MNC/startup/IT/night jobs requiring CNS stimulant.
45.9.3 Body: Area increased by consumption
• Wheat & Rice: NFSA Act, Mid Day Meal and growing population = increase
consumption/demand of wheat and rice. And subsequently greater procurement by
Government under MSP.
• Sugarcane due to increased demand in the processed food, carbonated soft drinks, fastfood,
cakes.
• Potatoes: increase the consumption & marketing for chips/wafers fast food.
• Dragonfruit, Kiwi & other exotic fruits and vegetables: Due to rising income of the middle
class and elites influenced by western lifestyle / changed dietary habits.
• Maize for Cornstarch & Corn syrup: in processed food, candies etc.
• Millet / Bajra: increased demand after FAO-intl. Year of millets AND also by updated MSP
methodology that provides 60–85% profit to farmers over cost price.
45.9.4 Body: Area decreased
• Cotton: slowdown in textile sector after 2007’s subprime crisis. Greater use of synthetic
fibres.
• Jute: increased the use of plastic bags → Lowered demand despite government regulations.
• Pulses witness declined due to Cobweb phenomenon.
• Oilseed declined bcoz fast food chains prefer imported Palm oil (available cheaper under
FTA-agreements- ignoring Corona shortage). While Govt MSP not as attractive. So
castor/groundnut farmers explore other crops.
45.9.5 ✍️ Conclusion:
• Thus, the cropping pattern in India is gradually undergoing a change.
• while a modern economy should always be open to embracing new changes, but care should
be taken to ensure we are promoting nutritious, water-efficient and sustainable crops
simultaneously taking into account the financial well-being of the farmers.
• (SDG 1) No Poverty, - (SDG 2) Zero Hunger, - (SDG 3) Good Health and Well-being.
45.10AGRO-SELLING: PM KISAN – 6000/PER YEAR

2019: Agriculture ministry announced PM KISAN Scheme to provide ₹6000 per year to every
farmer. It is one type of direct benefit transfer/ income support scheme.

Criticism / challenges against PM KISAN:

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1. Indian Council of Agricultural Research (ICAR) gets hardly Rs 8,000 crore from budget.
Whereas the [food subsidy + fertiliser subsidies + PM-KISAN] = total cost is about ₹5 lakh cr. To
double the farmer, we need to triple the amount on agri-R&D and extension, especially in the
emerging areas of high-value agriculture (horticulture, medicinal plants, livestock, fishery, etc)
(किसानों को सब्सिडी के नाम पर इतना सारा पैसा देने की जगह- कृ षि सं शोधन के लिए पैसा खर्च करना जरूरी).
2. If a farmer’s name is not in the land records of State/UT then he’s not eligible. This excludes
a. landless / tenant farmers - who cultivate someone else’s land on contract.
b. Tribal farmers who may not have land ownership documents.
3. ₹ 6000 rupees per year is too little amount to cover the cost of seeds, fertilizers, wages of farm
labourers. For a 2 ht land, minimum input cost is ~₹ 50k in reality.(रकम बहुत कम है)
4. Some state governments are running better schemes on their own e.g. Telangana’s Rythu
Bandhu, Odisha’s KALIA scheme etc. Either they give more ₹₹ per farmer and/or even landless
farmers given some ₹₹. (कु छ राज्य सरकारों की योजनाएं कें द्र सरकार की योजना से भी बेहतर है )
👊 ✋ Counter-argument? Union government has launched a scheme within the constraints of fiscal
deficit target. 15th finance commission has provided 41% tax devolution to the states so they may run
parallel schemes with their own ₹₹ for the farmers’ welfare. PM-Kisan is a better alternative than
one-time loan-waivers. (राज्य सरकार चाहे तो अपनी जेब से ज्यादा पैसा निकाल कर किसानो को दें)
✍️
45.10.1 Income Support: Conclusion template? (आमदनी में सहयोग -निष्कर्ष)
Successive economic surveys have noted that farming is not a profitable enterprise in India. <insert
UN-SDG Goal#1, 2, >. However, an Indian farmer is often at the mercy of the monsoon & the
APMC-merchants. PM KISAN income support scheme / PM Kisan Maan-dhan Yojana is a notable
initiative to empower him. (इन योजनाओं से किसान का सशक्तिकरण होगा)

46 🧃F OOD PROCESSING INDUSTRIES FOR GSM3

46.1.1 🧃 Food Processing: Meaning (खाद्य प्रसं स्करण: अर्थ/मतलब)

It is the process of turning fresh / raw foods into food products, using mechanical and chemical
operations. (यांत्रिक और रासायनिक तरीको का उपयोग करके , ताजे / कच्चे खाद्य पदार्थों को, खाद्य उत्पादों में बदलने की प्रक्रिया है)
46.1.2 🥤 Food Processing: data from 📕ES24
Matter India’s rank
Milk production #1
Fruits, vegetables and sugar production #2

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 one of the largest employers. 12% with of total jobs in the
Jobs in Food Processing Industry
organised sector.
USD46.44 Billion, accounting for about 11.7% of India’s
Exports from Food Processing Industry
total exports (2022–23).

46.1.3 🧃🤑Food Processing Industry: Significance (महत्व)

 Direct and indirect employment opportunities, ↓ migration. (बेरोजगारी और स्थानांतर)
 ↓ wastage of food, ↓ food inflation. (खाद्य चीजों की बिगाड़ बर्बादी मं गाई)
 ↑ export earning, ↓ Current Account Deficit, ↑ GDP
 Farmer motivated for growing fruits, vegetables, milk, fish, meat, poultry, grain, etc. → doubling
his income.

46.1.4 🧃🔭
Food Processing Industry: Scope / Opportunities (अवसर)
 Geographical: multiple types of soil & agro-climatic conditions, large coast line & fresh water
bodies. → Suitable for cultivation of variety of crops & fisheries. (अलग-अलग फसलों की पैदावार के लिए
विभिन्न किस्म की मिट्टी और जलवायु परिस्थितियां)
 Demand: Nuclear families, usually working couples: wanting processed food / ready to cook
instant food. (एकल या विभक्त परिवार- तुरंत पकाने के लिए तैयार भोजन चाहिए)
 Diabetes, obesity, Blood pressure, lifestyle diseases =>demand for healthy food, organic food.
 Export potential for ethnic food and beverages such as Rasgulaa, kokum water, coconut water,
Toddy Palm wine etc. (भारत के पारंपरिक खाद्य और पेय पदार्थों के निर्यात कर सकते हैं.)
 Govt permitted upto 100% FDI in food processing industries. If foreign companies invest in
India, it can further boost our products’ quality. (विदेशी निवेश में भी 100% अनुमति दी गई.)
46.1.5 🧃😰 Food Processing Industry: Challenges → General (चुनौतियां)
While India is among the largest producers of cereals, Fresh fruits, vegetables, milk, meat, oilseed,
cash crops and fisheries. But less than 1/5th of food gets processed. Reasons:
 Problems in access to Capital / Loans, Infrastructure. (पूंजी, ऋण, बुनियादी अवसं रचना)
 Need Skilled Manpower, Research Development, Technology
 Plethora of government schemes: overlapping, ambiguous, inefficient. (मिलते जुलते उद्देश्य वाली बहुत
सारी सरकारी योजनाएं लेकिन प्रभाव में बेअसर)

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 Obstacles in APMC Act, prevalence of middle-men. No direct linkages with farmers. (Until the
recent E-NAM And Agri-ordinances)
 in the export market:
o 1) Competition from others: Kenya (Tea), Newzealand (Milk), ASEAN (Fish)
o 2) Our products get rejected on health & hygiene standards

46.1.6 🧃🚛 Supply Chain Management (SCM: आपूर्ति श्रृंखला प्रबंधन)

 Supply chain is a system that links a company with its suppliers and customers.
 Supply chain management (SCM) tries to optimize the production and marketing by getting the
right things - to right place- at right time - In a cost-effective manner.
 आपूर्ति श्रृंखला प्रबं धन - सही चीजों को सही समय पर सही स्थान पर पहुंचा कर कं पनी को उसके आपूर्तिकर्ता और ग्राहकों के साथ
प्रभावी, किफायती, तेजी से जोड़ने की कोशिश करता है.
46.1.7 🧃🛶👩‍🌾Food Processing: Upstream issues

 🌽Crops, fruits, vegetables: Climate change, heatwave, drought, diseases affecting the
production and quality. (जलवायु परिवर्तन, सख़्त गर्मी की लहर, सूखा, बीमारियाँ)
 R&D required to improve their shelf-life, taste, colour and texture for foreigners. (फल सब्जी: लंबे
समय तक बिगड़े नहीं, स्वाद रंग त्वचा विदेशियों को आकर्षित लगे, ऐसे वैज्ञानिक सं शोधन की जरूरत)

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 🐮Cattle & Poultry: Foot & mouth disease, shortage of veterinary doctors, Avian Influenza,
Swine flu. Shortage of green fodder. (मवेशी-मुर्गी, रोग/चिकित्सा, हरी घास)
 👹Cooperative farming/Cooperative dairy sector suffering from politicisation / casteism / scams.
(सहकारी कृ षि/डेयरी क्षेत्र में राजनीतिकरण, जातिवाद और धांधली)
 🚛Transport, Electricity, Infrastructure problems: milk/fruit/vegetable stored at village
collection point gets spoiled. (परिवहन, बिजली, बुनियादी सुविधाएं )
46.1.8 🧃🛬🛒Food Processing: Downstream issues

 ⚗️Adulteration in spices, cereals and other food products. synthetic milk made from Detergent,
Urea and caustic soda. (मसाले, खाद्यान्न, दूध - हर चीज में मिलावट खोरी)
 Indian consumers prefer to buy fresh vegetables/meat/fish rather than processed or frozen. (ताजा
सब्जी खरीदना पसं द करता है)
 🚊Rail Transport: timing-schedules, cold storage problems. Congested rail stations, lack of
sorting, grading, warehousing facilities nearby. (अप्रभावी रेल परिवहन)
46.1.9 🧃🛬🛒🎅Food Processing: Downstream issues → Export stage

 ☕️Tea Competition from Sri Lanka, Kenya, Indonesia and China. Coffee Competition from
Brazil, Columbia. (निर्यात बाजार में अन्य देशों की चाय कॉफी से स्पर्धा)
 ⚓️Port & Shipping: Environmental issues in land acquisition= hard to setup new port / expand
the existing port. (बं दरगाहों का विस्तार करने के लिए जमीन सं पादन मुश्किल)
 🩺Often our food-products get banned in the USA and EU for health/hygiene standards. (e.g.
mango: stone weevil insect, buffalo meat : foot-and-mouth disease, fish: heavy metal
contamination). Then we've to undergo a lengthy legal process & inspection process to get the
ban lifted. (स्वास्थ्य / स्वच्छता मानकों के चलते अमेरिका और यूरोपियन यूनियन में हमारे निर्यात का अस्वीकार/प्रतिबं ध)
 🍋Protectionism: High level of taxes imposed on Indian Exports by USA/EU/China. (सं रक्षणवाद)
Ref-Pillar#3B. ++Refer to points mentioned in Agriculture Export Policy

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46.2 E-COMMERCE CAN HELP IN SCM OF FOOD PROCESSING COS- HOW?

(Origin) in recent years, Indian economy has witnessed a remarkable growth of e-commerce. Within
e-commerce, a subcategory of grocery and food-related apps have developed superfast supply chain
management. Examples- BlinkIT: which delivers groceries in 15 minutes, Bigbasket- which delivers
within one day in major cities.

(Significance) E-commerce companies can help the food processing companies supply chain
management (SCM) in following way:

- Improved Market Reach to pan India.

- Real-time Inventory Management & Traceability through GPS.
- Enhanced Demand Forecasting with help of web traffic, search engine enquiries, customer wish-
list.
- Efficient Order Fulfilment e.g. customer places order for bread then automatically giving
suggestions for bundle of butter/fruit jam.
- Reduced Supply Chain Costs via economies of scale, bulk transport of variety of commodity.
- Temperature-controlled Logistics
- Finding elite/ health-conscious customers for the exotic / premium products e.g. Black rice
(Manipur), Emu eggs, Dragonfruit, Avacados, organic food etc.

46.2.1 ✍️ Conclusion: e-commerce for SCM

- Thus, E-commerce holds immense potential in revolutionizing the supply chain management of
the food processing industry. OR
- The deeper integration of e-commerce ecosystem with food processing companies hold a win-
win situation for both A) helping company to reach larger number of customers in shortest
possible time B) offering consumers greater convenience and access to a wide range of food
products.
46.3 FOOD PROCESSING- GOVERNMENT INITIATIVES
46.3.1 By Agri Ministry or food processing Ministry
- Mega Food Park: Where government bears the cost of developing the common infrastructure
such as packing labelling, weighing machines. It reduces the investment requirement for an
individual company.

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- Pradhan Mantri Kisan Sampada Yojana: funding provided for setting up of cold chain
infrastructure.
- Green Revolution - Krishonnati Yojana → Mission for Integrated Development of Horticulture
- PLISFPI: Production Linked Incentive Scheme for the Food Processing Industry
- PM Formalization of Micro Food Processing Enterprises (PMFME)
- Operation Greens: money / subsidy to the farmer self help groups, food processing companies
etc. for processing, transportation & cold storage of Tomato, Onion and Potato (TOP) & other
fruits-veggies and 1 marine product (shrimp), to ensure their round the year availability in
market at a reasonable price. Op. Greens has two strategies given below
Short-Term Measures in Op. Greens Long-Term

Price Stabilization Measures Integrated Value Chain Development Projects

50% subsidy on the cost of transportation and

35%-50% grant-in-aid for setting up food
storage for fruits & vegetables from surplus
processing project
production centres to deficit centres.

46.3.2 Commerce Ministry’s Agri Export Policy 2018: how it helps food processing industry?
- To help exporters with sanitary and phyto-sanitary (SPS) issues via APEDA, FSSAI and other
bodies. So their products are not banned by US/EU on the allegations of pesticide residue /
pathogen / fruit fly contamination. It reduces the cost of compliance for the food processing
industry.
- To focus on branding, packaging & marketing of Indian ethnic products e.g. canned Indian
cuisine like Sarson Da Saag, Makhana from Bihar, Agra petha, Hyderabadi biryani in overseas
markets.
- To focus on R&D for gluten free, fibre rich products to cater health conscious consumer
overseas.
46.4 SMALL FOOD PROCESSING UNITS – LOW ADOPTION IN INDIA, WHY?

Small food processing units (SFPUs) are food processing businesses that are typically small-scale,
family-owned, and operated. They often have a limited range of products, limited geographical reach
and a small market share.

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46.4.1 Small food processing units - challenges
- Lack of capital. Lack talented manager / visionary CEO. because can't pay a high salary. पूंजी की
कमी → पेशेवर मैनेजर की कमी क्योंकि अच्छी तनख्वाह दे नहीं पाएं गे
- Many bottlenecks in terms of SCM, storage, processing, branding, labelling, marketing. आपूर्ति
श्रृंखला प्रबं धन, विज्ञापन विपणन वगैरह में समस्याएँ
- Problems of Ease of Doing Biz. (More in Pillar#4B) जटिल सरकारी नियमों के चलते व्यापार करने में सुविधा नहीं .
- Within India: cannot compete with the Big FMCG companies like Nestle, Britannia, Parle,
Dabur etc. (बड़ी कं पनियों से टक्कर ले नहीं पाते)
- Outside India: Cannot comply with the food safety and hygiene standards of USA/EU. अमेरिका और
यूरोप में खाद्य सुरक्षा के नियम काफी सख्त हैं इसलिए उत्पादन खारिज कर दिए जाते हैं
- Lack ₹₹ to do R&D on foreign consumers’ taste pallet, foreign marketing. विदेशी ग्राहकों को किस प्रकार
का स्वाद पसं द है उस पर सब सं शोधन - के लिए पैसे नहीं
46.4.2 Small food processing units can help in poverty removal how?
- Poor farmers can setup a micro enterprise in food sector, with help of MUDRA loans.
- Ownership of an enterprise → Social status ↑
- Food processing value addition → Income ↑
- Can work as outsourced agents of bigger food companies- thanks to GST Input tax credit system.
Conclusion- need of the hour is to encourage small food processing units to reduce the poverty and
food inflation - by addressing aforementioned challenges.

46.5 NORTHWEST INDIA - LOCATION FACTORS FOR FOOD PROCESSING INDUSTRY

(PYQ-2019-GSM1) Discuss the factors for localization of agro-based food processing industries of
North-West India. (उत्तर-पश्चिमी भारत के कृ षि-आधारित खाद्य प्रक्रमण उद्योगों के स्थाणुयकरण के कारकों पर चर्चा कीजिए | )

(Origin) even before independence, north western India saw the growth of food processing brands
such as Rajasthan: Haldiram Sweets & Namkeen (1937). Punjab: MDH spices (1919). Reasons

 Even before independence: Banking network was well established → access to credit/finance
easier for entrepreneurs.
 Green rev → Punjab and Haryana had greatly benefited = Farmers' income and prosperity ↑ →
savings to start small scale food processing units → growth in future generation

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 LPG reforms → 1990s: Pepsico contract farming project in Punjab for Basmati rice, potato, chili,
tomatoes → Chips, Frito Lay snacks etc.
 Pepsico's best practices → inspired the Indian companies to follow similar Supply Chain
Management models.
 Punjab & Haryana: Dairy Industries well developed. Milk & butter → important ingredients for
biscuit & confectionery items.
 Wheat, milk = Bulky/perishable items available locally.
 Spices, dry fruits etc = less bulky/longer-shelf life can be transported from other states. So it
makes more economic sense to setup Food processing factory here.
 Sutlej, Ravi, Beas & other rivers: water, Soil, climate, topography very conducive → wheat, rice
and other foodgrains.
46.5.1 North West India: Government support
 Food processing ministry has set up Mega Food parks at Punjab: Kapurthala, Ludhiana and
Fazilka; Haryana: Sonipat, Rajasthan: Ajmer
 In these Mega Food parks → Govt provides common infrastructure for weighing, packaging,
labelling, marketing etc. =encourages entrepreneurs to setup the unit in mega food park.
 Large network of cold storage warehousing by public and private sector.
46.5.2 North West India: Proximity with the market
 High population density in the Delhi-NCR-UP region provides
 instant demand of the processed food items esp. bread, biscuit and spices.
 Large Punjabi NRI diaspora living abroad (Canada, UK, USA) also imports the
processed/canned food from these companies.
 Some NRIs also invested in this business.
✍️Conclusion: Thus, the availability of raw material, entrepreneurship, proximity to the market &
Government support has helped in the growth of agro-based food processing industries in North-
West India.

46.5.3 🧃✍️Food Processing: Conclusion- हां इस क्षेत्र पर ध्यान देना होगा

Food processing industry can increase income of farmers, jobs for youth and export earnings & GDP
growth for India. It can also help in Sustainable Development Goals (SDG)-
 SDG Goal #2: eliminate hunger and malnutrition. (भूख और कु पोषण को खत्म करना)
 SDG Goal #5: Gender empowerment via employment opportunities (महिला सशक्तिकरण)
 SDG Goal #8: Decent Work and Economic Growth (रोजगार के अवसर, आर्थिक वृद्धि)

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 SDG Goal#12: Reduce food wastage at post-harvest supply chains. (कटाई के बाद की आपूर्ति श्रृंखला में खाद्य
बर्बादी बिगाड़ को कम करें।)
Therefore the aforementioned issues need to be addressed on war footing /priority basis. (किसान की
आमदनी युवाओं के लिए रोजगार आर्थिक वृद्धि सतत विकास लक्ष्य- सभी जगह पर खाद्य प्रसं स्करण उद्योग मदद कर सकता है अतः उपरोक्त
मुद्दों को युद्धस्तर से निपटना / प्राथमिकता देना जरूरी)

47 🐮S ECTORS → ANIMAL HUSBANDRY (पशुपालन)

- DPSP-Article 48: requires the State to organise animal husbandry on modern and scientific lines,
preserving and improving breeds, and prohibiting the slaughter of cows and other cattle.
47.1 ECONOMICS OF ANIMAL REARING: BUFFALO/ COW

ITEM PRICE
₹50,000. But it will take two years to reach maturity to
CALF OF A JERSEY COW
breed & give milk.
FULLY GROWN MILK GIVING COW ₹1 lakh or higher + transportation cost
PROFIT PER COW PER YEAR upto ₹60,000

47.1.1 Challenges in cattle-rearing

 foreign breeds of cows produce more quantity of milk, but require upkeep (fodder, temperature
control, water).
 Lumpy Skin Disease (LSD) killed over 1.55 lakh Indian cattle in 2022.
 😥Health: Prevalence of disease e.g. foot and mouth disease, Lumpy skin disease, overuse of
antibiotics, shortage of veterinary doctors.
 feed/fodder not available at affordable prices.
 Dairies not increasing milk procurement prices compare to the level of inflation in the input
(fodder)
MILK BUSINESS 2021 2022 % INCREASE
FARMER’S FODDER COST ₹17 per kg ₹23 per kg 35.29%
AMUL PAID HOW MUCH TO FARMERS? ₹42/lt ₹44/lt 5%

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 MILK BUSINESS 2021 2022 % INCREASE
AMUL CHARGED HOW MUCH TO
₹56/lt ₹63/lt 12.5%
CUSTOMERS?
- Post-2017: Excess supply of milk in global market → crash in milk prices. So, Indian private
dairy owners also cut down their procurement prices, resulting in dairy farmers’ distress &
agitations. So, farmers spilling milk on highways in protest. (अत्याधिक आपूर्ति → दामों में गिरावट)
- As animal gets old & stops giving milk → farmers sell it to slaughter house to get money to buy
new animals. But, this trade becoming difficult due to present socio-political atmosphere → even
leather-industry also suffering. (वर्तमान सामाजिक-राजनीतिक माहोल में बूढ़े पशुओं को क़त्लखाने में बेचने में किसान को
दिक़्क़त, जिससे कि चमड़ा उधयोग में भी समस्या)
- RCEP Agreement Angle. We’ve mastery over liquid milk products whereas NewZealand mastery
over solid milk products. Therefore, our products do not have export advantage in the global
market.
- Foreign cattle breeds expensive to maintain. Need to develop indigenous breeds who need less
water, tolerant to disease.
- Need to Promote small ruminants sheep-goats etc. for women / small marginal farmers. Because
they’re cheaper to maintain, quicker to reproduce, easier to sell and tolerant to heat, drought and
disease.- suggested ES.
- US/EU: health-hygine-SPS - Overuse of antibiotics. Indian animal meat/milk products fail/
reject. स्वास्थ्य मानदंडों पर अमेरिका और यूरोप में भारतीय उत्पाद खारिज हो जाते हैं
- dairy sector politicisation and scams preventing the entry of professionals in management.
47.2 ECONOMICS OF ANIMAL REARING: EMU BIRD

ITEM PRICE / PROFIT / ECONOMICS

₹4000. But it will take two years to reach
BABY CHICK
sexual maturity to lay eggs.
GROWN UP FEMALE BIRD ₹40,000. + transportation cost

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 FOR HOW MANY YEARS FEMALE GIVES EGGS 20 years
30–50. Farmer may sell some of them as
FEMALE ANNUALLY GIVES HOW MANY EGGS
eggs, and grow remaining as birds.
PROFIT PER BIRD (LIFECYCLE- EGGS, MEAT, OIL
TO PHARMACIES, FEATHERS TO FASHION upto ₹70,000
DESIGNERS)

47.2.1 😰 Challenges / Constrains in Emu-rearing

- Expert veterinary doctors difficult to find if the bird gets disease.
- Birds big in size so relatively large land requirement compared to hens.
- need networking with elite gym-trainers, dieticians, doctors, Fashion designers, online grocery
stores to sell them. This eco-system is fully developed in China, Europe and Australia but not so
in India.
- Socio-religious taboo against eggs / bird meat from the family / relatives / neighbours may deter
the farmer from adopting.
- For most Indian farmers there is “fear of unknown” - spending ₹40,000 to buy a big bird that
makes weird noises. (comparing to buy an expensive breed of cattle.)
- Difficulty in getting loan for project
Conclusion: - Livestock rearing has a big potential for providing non-farm employment and income
in rural areas. Need to address problems on war-footing. ग्रामीण क्षेत्रों में गैर-कृ षि रोजगार और आय प्रदान करने के
लिए पशुपालन क्षेत्र बड़ी क्षमता रखता है

48 🐟S ECTORS → FISHERIES

• - (Definition:) Blue revolution is an initiative of the Govt of India for the development of the
fisheries sector in India to improve income and welfare of the farmers & fishermen.
• - (Definition:) Pisciculture / Fish farming is the activity of raising fish commercially in
artificially created tanks/ponds.
48.1 PISCICULTURE / FISH FARMING : CHALLENGES

- Pisciculture / Fish farming Require fresh water supply. Even Coastal states like Tamilnadu facing
fresh-water crisis.
- Feed cost= 50% of the total cost. Need Govt funding in research for low cost feed.

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- Counterfeit/spurious Fish feed / medicines: antibiotic traces found in Indian shrimps and fishes.
They’re rejected in US/EU market under WTO SPS agreement.
- Disease free brooder stock (parent shrimps) is not easily available.
- Difficult to obtain bank loans, insurance
- Lack of extension / training services.
- Transportation, cold storage and other infrastructural bottlenecks.
- Lack of contract farming–Presence of middlemen in the fish trade =⬇ profit margin of fish
farmers.
- The demand for processed fish is limited in the domestic market. Restricted to fish pickles,
papads, cutlets. Need to do more research development for new variety of products
- Social factors: Religious prohibition. Poisoning in a fish pond due to jealousy or revenge.
48.2 FISHERIES SECTOR: SUGGEST FUTURE REFORMS
- Converge with Shipping Ministry’s Sagarmala Project → port development, hinterland
connectivity and skilling of coastal communities.
- Use MGNREGA labourers for creating artificial fish ponds in the village
- National Rural Livelihoods Mission (NRLM) → form SHG for fish farming and food processing.
- Himalayan region: Coldwater Fisheries Development for food and ornamental purposes.
- Focus on niche markets such as oyster & pearl farming in artificial tanks.
✍️ Conclusion: Pisciculture can ⬆ income security, nutritional security and export earnings.
- SDG GOAL 8: Decent Work and Economic Growth.
- SDG Goal 10: Reduce Inequalities within the country.
Therefore the need of the hour is to address the aforementioned challenges on priority basis or War
footing.

48.3 👻📯🐡🦐 F ISHERIES: PRADHAN MANTRI MATSYA SAMPADA YOJANA (2020)

Basically whatever they ask about Fisheries- just twist/modify the following features of PM Matsya
Sampada Yojana scheme as per requirement.

This scheme provides Support / Funding / Subsidies for

 👨‍🏫Sagar Mitra youth extension workers: They'll give training to fishermen.
 🛶🔪☠️Fishing Boat/Vessels → Loans interest subsidy and Insurance premium subsidies (नाव/पोत
के लिए ऋण के ब्याज और बीमा किस्त में सब्सिडी)
 Inland Aquaculture, Coldwater Fisheries in Himalayan areas, (अंतर्देशीय, शीत जल मत्स्य)

 🌾Seaweed cultivation, 🐠Ornamental Fisheries (समुद्री शैवाल की खेती, सजावटी मछली)

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 Mariculture: cultivation of marine organisms in their natural environment in sea upto 12
nautical miles from coast.
 ⚓️Development of fishing harbours, Post harvest infrastructure, transport, marketing support (
बं दरगाह, बुनियादी अवसं रचना, परिवहन, विपणन सहायता)
 ⚗️🩺Quality control labs so we can comply with US/EU's health/hygiene, sanitary and phyto-
sanitary (SPS) standards. (गुणवत्ता नियंत्रण प्रयोगशालाएं , ताकि अपना मत्स्य उत्पाद विदेशों में स्वास्थ्य/स्वच्छता सं बं धित
मानकों पर खारिज ना हो जाए)
 🗓
Scheme Valid for next five years, starting from 2020
 🤩Outcome? 55 lakhs direct and indirect jobs, ₹1 lakh cr fisheries export by 2025.
✍️Conclusion? Fisheries and aquaculture are an important source of food, nutrition, employment
and exports in India. Govt has taken an appreciable step to boost this sector further. (भोजन, पोषण,
रोजगार और निर्यात की बढ़ोतरी के लिए महत्वपूर्ण इस मत्स्य क्षेत्र को, और बढ़ावा देने के लिए सरकार ने, एक सराहनीय कदम उठाया है।)

49 🌽👨🏼‍🔬👨🏼‍🏫 A GRI → RESEARCH DEVELOPMENT & EDUCATION

Indian Council of Agricultural Research (1929) is the apex body of agricultural research, education
and extension under the ministry of agriculture.

49.1.1 ⚠️ Challenges in Agro R&D? <for Mains GSM3>

1. ICAR scientists’ salary structures and promotion rules are time-bound and seniority based. So
highly intelligent scientists opt for private companies / foreign countries.
2. Presently agriculture research funding is <1% of GDP. We need to increase it. 📙📙ES22
observed that every rupee spent on agricultural research and development, yields much better
returns (11.2), compared to every rupee spent on fertiliser subsidy (0.88), power subsidy (0.79),
education (0.97) or on roads (1.10). (कृ षि-सं शोधन में ख़र्च किया गया प्रत्येक रुपया हमें 11 गुना फ़ायदा करा सकता है,

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 किन्तु सरकार किसानों को ख़ुश रखने के लिए यूरिया सब्सिडी, बिजली सब्सिडी इत्यादि पर ज़्यादा पैसा ख़र्च करती है जो वास्तव में 11
गुना फ़ायदा या उत्पादन में बढ़ोतरी नहीं दे पाता।)
3. Govt scientists mainly focus on improving quantitative yields. If they also focused on aroma,
taste, appearance, calorie, nutrient, antioxidants etc. from wealthy health-conscious
urban/foreign consumers’ point of view, then premium varieties can be created to help farmer
earn more money. (सुगंध, स्वाद, कै लोरी, पोषक तत्व के हिसाब से बेहतर उत्पाद बनाए तो ज्यादा पैसा)
4. Indian agriculture research has become ‘cereal centric’. We need to focus on pulses, oilseeds,
horticulture and animal husbandry as well. (बागायत, पशुपालन, दालों और तिलहन पर भी सं शोधन जरूरी)
5. Even if research doesn’t drastically ↑ the quantitative yield, but improves the shelf life of onions,
potatoes, tomatoes etc. then also food inflation can be controlled by reducing seasonal variation
in the supply. (जल्दी खराब ना हो जाए ऐसे प्याज टमाटर सब्जियां)
49.1.2 ⚠️Challenges in Agro Education? <for Mains GSM3>
Past Economic Survey & NITI reports observed: There is proliferation of self-financed private agri
colleges without sufficient faculties, proper labs or infrastructure.
- Instead of creating more institutions, we should focus on quality of research and infrastructure
in existing bodies. (उच्च शिक्षा सं स्थानों में सं शोधन और बुनियादी अवसं रचना को बेहतर किया जाए)
- ICAR should have UGC like powers to regulate these private agro. Colleges.
- At least two agri universities should be given large grants so they can do global level research.
- 👜🥻Budget-2022:- revise syllabus of agricultural universities for natural, zero-budget and
organic farming, modern-day agriculture, value addition and management. (कृ षि विश्वविद्यालयों के
अभ्यासक्रम को नवीनतम किया जाएगा। जिसमें प्राकृ तिक खेती, मूल्यवर्धन इत्यादि पर जोर दिया जाएगा)
✍️ Conclusion: need to address the lacunas in agriculture research development and higher
education to improve the yield and productivity of our crops. This will help in dual objectives 1) food
security / inflation control and 2) doubling farmers’ income.

50 🌽👨🏼‍🔬👨🏼‍🏫 A GRICULTURE → EXTENSION SERVICE (विस्तार-सेवा)

Figure 1: हमें खेतीबाड़ी की कोचिंग मिलेगी तो और अच्छे से उत्पादन कर पाएं गे

- Definition: Extension service is an informal education process to offer advice, information and
training, usually meant for farmers, villagers and women to change their outlook towards their
agricultural / economic / health problems. (अनौपचारिक रूप से सलाह, जानकारी, तालीम देना ताकि लाभार्थी का
अपनी समस्याओं को देखने का नजरिया बदलें)

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- 😰Challenge? NSO survey, ~60% of Indian farmers do not get much agricultural technical
assistance from govt-institutes. So they rely on progressive farmers, media, and private sellers of
seeds, fertilizers, and pesticides- who may not give them unbiased advisory because of their own
vested commercial interests. (किसान, व्यापारी की सलाह ज्यादा मानते हैं क्योंकि सरकारी सलाह कम मिल रही है)
Usually 5 delivery channels for agri-extension services:

Channel (माध्यम) → 😰Challenges (समस्याएं )

Geographical each, manpower availability.
Individual counseling via personal meeting,
Barely 1 extension worker available per 800-1000
toll-free Helpline & Letters
farmers.
Group counseling via seminar, workshop, group Farmers fear loss of workday, lack of motivation
discussion, field visit. to spend time / travel.
Kurukshetra and other govt magazines / Illiteracy and poverty. then we’ve to use audio-
periodicals. visual methods such as….
Marginal farmers may not have instruments to
Mass Media via Kisan TV (2014) and Public
watch them. Customized / tailor made advisory /
Radio broadcast. (टीवी रेडियो द्वारा जनसं पर्क )
information difficult to deliver.
E-Technology via E-Krishi (Webportal) ; Mass reach possible because more mobiles and
mKisan (SMS/USSD), Kisan Suvidha App etc jio4G effect.Tailor-made advisory can be given.

50.1.1 🌽👨🏼‍🔬👨🏼‍🏫 Agri-extension services → Timeline of schemes / events

- 1974: Krishi Vigyan Kendras (KVKs) under ICAR started.
- 1998: Agriculture Technology Management Agencies (ATMAs) supported by ICAR.
- 2002: Agri-clinics by private individuals -usually, agri. graduates. They receive funding from
Agriculture Ministry.
- 2011: ICAR launched National Innovations on Climate Resilient Agriculture (NICRA)
- 2014 onwards: Modi launches Kisan TV, Kisan Suvidha App, mKisan portal etc.
- ICAR’s initiatives in recent years are as following.
o ARYA→ Attracting And Retaining Youth In Agriculture- For entrepreneurship in food
processing chains.
o READY→ Student Rural Entrepreneurship Awareness Development Yojana
o Krishi Unnati Mela → Jointly by ICAR & Agro Ministry’s other departments
o KRITAGYA Hackathon (2020) → Krishi-Taknik-Gyan Competition for college
students in startups to provide innovative solutions for agriculture Technology - esp.
women friendly farm machinery.

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- 2017: Biotech-KISAN Programme by Ministry of Science and Technology → Department of
Biotechnology for scientist-farmer partnership
- 2018: Agricultural Education Portal EKTA by Dept of Agricultural Research & Education
- 2018: Agri Ministry launched Krishi Kalyan Abhiyaan to advice farmers on how to improve
their farming techniques, Bee Keeping, Mushroom cultivation, animal vaccination, etc
- 2020: Agri Ministry launched Sahakar Mitra scheme for paid internship for youth in
Cooperative organisations.
- 👜🥻Budget-2022:- we will involve startups and PUBLIC PRIVATE PARTNERSHIP in Agri
R&D (कृ षी सं शोधन नवाचार में स्टार्टअप और सार्वजनिक निजी भागीदारी की मदद ली जाएगी)
🏻
50.1.2 ✍ Extension Services: Conclusion template
Agricultural extension plays a key role in boosting agricultural productivity, enhancing food security,
improving rural livelihoods and changing farming practices positively. However, hardly 40% of
Agricultural Households are getting access to it. So, we need to enhance the access to extension
services on war-footing. (कृ षि उत्पादकता बढ़ाने में विस्तार सेवा का महत्त्व है, किं तु मुश्किल से 40% परिवारों को ही यह सेवा मिल
रही है. इसलिए ज्यादा से ज्यादा कृ षि परिवारों को विस्तार सेवा मिले इसके लिए सरकार ने अग्रता क्रम से कदम उठाने चाहिए)

50.2 📲 E-T ECH IN THE AID OF FARMERS

 E- Technology, refers to the use of digital and electronic tools, devices, and systems to address
various challenges and improve efficiency in different domains.
 "E-TECH in the Aid of Farmers," it refers to the use of hardware, software, websites and mobile
apps to support farmers in their agricultural practices and enhance their overall productivity and
income.
50.2.1 E-Tech: 4 notable areas / applications
 Precision Agriculture: The use of sensors, GPS technology, and data analytics to apply exat
amount of irrigation, fertilization, and pesticides. This helps farmers minimize resource wastage
while maximizing yields.

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 Remote Monitoring: their crops and livestock using cameras, drones, or satellite imagery. This
allows them to detect potential diseases/ predators/ problems early and respond promptly.
 Farm Management Software: like farm management apps and software provide farmers with
tools for planning, scheduling, and income - expense record-keeping and inventory
management.
 Market Access and Information: to connect farmers directly to markets, buyers, and traders,
providing real-time information on commodity prices, market trends, and demand.

50.3 📡A GRI EXTENSION: NOTABLE APP / PORTALS - TRUCKLOAD OF

50.3.1 Apps / Portal: for 360 info
FAQ: who is the owner of the portals given in the table? Ans. Most of the portals are owned by
agriculture ministry, but some of them are also created by ICAR, FCI, NAFED etc. Poor cost benefit
memorising that information.

Name of portal/app Feature

Kisan Suvidha Provides information on weather, input dealers, market price, plant
protection, and expert advisories.
MKisan Portal Serves as a one-stop-shop for farmers, providing agricultural services,
information, and government schemes.
50.3.2 Apps / Portal: Weather / Soil / Cropping advisory
Soil Health Card Allows farmers to access their soil health cards online, providing information
Portal on soil nutrient content and crop suitability.
e-Sagu Karnataka Agri Uni portal for personalized agricultural advice and
information on crop management, pest control, and soil health.
Pusa Krishi ICAR portal Provides information on latest technologies to farmers.
India Weather Provides current weather and 4 days weather forecast across the country for
more than 300 cities.
📡 WINDS Portal • Weather Information Network Data Systems (WINDS) portal.
(2023) • For weather data analytics related to agri for disaster management,
crop insurance et cetera.
• Boss? Agri ministry with help of Ministery of Earth Sciences.
50.3.3 Apps / Portal: for SELLING produce
eNAM Online trading platform connecting agricultural markets (mandis) for electronic
sale of produce.
AgriMarket Provides market price of crops in the markets within 50 km of the device’s location.
Helps in for better price discovery and reduced intermediaries’ involvement.
Kisan Facilitates direct online marketing between farmers, consumers, and traders.
Bandi

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 e- Enables farmers to sell their produce directly to retail chains/stores.
Sahamathi
e-RaKAM Online platform for farmers to sell their produce directly to buyers through e-
auction.
CROPIC Connects farmers to markets, buyers, and agricultural information.

📡 Meri • By Haryana Government - to procure 14 crops @MSP price viz. wheat,

Fasal-Mera mustard, barley, gram, paddy, maize, bajra, cotton, sunflower, moong,
Byora groundnut, tur, urad and sesame.
Portal • Haryana has become the first state in India to do so. (2023)
50.3.4 Loan-insurance related portals
Name Objective

Krishi Rakshak to help the farmer file crop-loss compensation claim for Pradhan Mantri
Portal Fasal Bima Yojana (PMFBY)

Learning Management System (LMS): training and knowledge sharing about

(LMS) crop insurance and agricultural credit. With help of National E-Governance
Division (NeGD).
To help farmers/villagers buy insurance for health, life, home, shop,
SARTHI
agriculture machine etc. With help of United Nations Development
Ref Pillar1D3
Programme (UNDP). SARTHI can also be accessed on mobile via AIDE App
Digi-Claim Streamlines crop insurance claims and financial inclusion for farmers.

📡 Kisan Rin Portal • A portal for farmer loan data, interest subvention etc. (Ref:
Pillar#1D3 on farm loans)
(2023)
• Boss? Agri ministry with help of finance ministry, RBI, NABARD etc.

50.3.5 AI-based portals

Name Use
An AI-based advisor offering personalized recommendations for crops, pest
AIDE
management, loan-insurance etc.
YES-Tech Uses AI to detect crop diseases and predict yield.

AI anchors Al Krish, Al Bhoomi, Al Krish, Al Bhoomi: They read the agri-news 365 days
a year and speak 50 different languages.

NPSS AI-based National Pest Surveillance System (NPSS) - farmers can connect
with agri scientists and experts on controlling pests using their phone.

50.3.6 Misc. Portals / Statistics Database

Name Use

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 📡 UPAg Portal for •
•
UPAg = Unified Portal for Agricultural Statistics.
Boss? Agri ministry - for data relate to crop area under cultivation,
Agri statistics
yield per hectare, prices, import-export etc.
• Krishi Integrated Command and Control Centre (ICCC)
• info on crop yields, production, drought situation, cropping patterns
Krishi ICCC
• ICCC can create individual farmer-level advisories via apps like
Kisan e-mitra
• Webportal showing agro-ecological region of India. by National
NBSS BHOOMI
Bureau of Soil Survey and Land Use Planning (NBSS&LUP)- it is a
Portal
body under ICAR
SATHI for SEEDS • to ensure timely availability of quality seeds

50.3.7 🌽👨🏼🔬👨🏼🏫
‍ ‍ AgriStack: integration of database for farmer welfare
- Agristack concept involves integrating database of farmer’s Aadhar number, his farm land
ownership, his loan records, cropping pattern, GPS-Satellite records, weather-climate in the
region etc. (किसान के आधार कार्ड, जमीन मालिकी, बैंको से कर्ज, वो क्या खेती बाड़ी करता है, उस इलाके में हवामान की स्थिति
इत्यादि डेटा/जानकारी का डिजिटल डेटाबेस में एकीकरण किया जाए)
- It was proposed by NITI Aayog. 2021: Agri ministry signed agreements with private companies
of the likes of Amazon, Microsoft and Patanjali to start trials.
- 🤩Benefit? 1] Soil Health Card, PM Fasal Bima, PM Kisan, etc scheme’s effectiveness can be
improved. 2] Such Data-GPS mapping can help food processing companies in warehouse, supply
chain management 3] Research Development in Cropping patterns. [सरकारी योजनाओं को ज्यादा बेहतर
ढंग से लागू किया जा सके गा, खाद्य प्रसं स्करण कं पनियों को इस जीपीएस डेटा से अपनी आपूर्ति श्रृंखला प्रबं धन मदद मिलें, फसलों पर
और ज्यादा सं शोधन किया जा सके गा]
- 😰Challenges? 1) Personal Data Privacy. 2) If private companies know too much about a
farmer’s land ownership, loan history, bank balance etc they could exploit him. [किसानों के डेटा की
निजता का हनन, निजी कं पनियों के पास बहुत सारा डेटा चला गया तो किसान का शोषण करने में उसका दुरुपयोग हो सकता है]
50.3.8 Obstacles to E-Tech Adoption by Farmers
- Digital divide. Many farmers have ‘basic’ phones instead of smartphones. Whereas many of the
apps require smart phones.
- Low Level of literacy / education = lack confidence in taking risk. Preference for traditional
activities/ status quo.
- Video content better suitable then text content. But challenges related to Video data
consumption vs speed & affordability in rural areas.
- Farmers do not feel motivated to adopt modern techniques until there is a proven casestudy /
word of mouth recommendation by someone within their friends and family circle.
- Modern cropping technics need to be affordable. Precision farming using drones- can help
improve the yield. But can poor farmer adopt it?

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- lack of Ecosystem: dragonfruit plantation, Emu eggs. Even If farmer learns from a mobile app on
how to do these activities- there are many other problems (finance, disease, finding customers
through right network etc.) which will deter him. (refer to other sections of this handout to know
those problems)
50.3.9 E-Technology: Conclusion
• In conclusion, technology has played a vital role in transforming the lives of Indian farmers
by providing them with access to crucial information, improving productivity, and
enhancing market linkages. (किसानों को सही जानकारी देकर उनकी फसलों की उत्पादकता बढ़ायी जा सकती है
आमदनी बढ़ायी जा सकती है)
• This transformation has not only improved the socio-economic conditions of farmers but
also contributed to the achievement of Sustainable Development Goal 2 - Zero Hunger, by
increasing agricultural productivity and ensuring food security for the nation. (किसान की
सामाजिक और आर्थिक उन्नति होगी, साथ ही साथ कृ षि उत्पादकता में बढ़ोतरी के चलते देश के लिए खाद्य सुरक्षा भी सुनिश्चित)
• Thus integration of technology in agriculture is crucial for the sustainable development of
India's agricultural sector and the overall well-being of its farmers.
50.4 PYQ-GSM3–2023-ECOQ: E-TECH FOR FARMERS (10MARKS)

➢ How does e-Technology help farmers in production and marketing of agricultural produce?
Explain it. (कृ षि उत्पादों के उत्पादन एवं विपणन में ई तकनीक किसानों की किस प्रकार मदद करती है? इसे समझाइए)
➢ Context: These is a low intensity topics of the syllabus. In a ping-pong / ebb-tide fashion, one
year UPSC will ask next year UPSC will not ask. so it will be not right to say that just because
“X” mobile App was launched so UPSC asked it.
50.4.1 Intro
➢ (Definition:) various challenges and improve efficiency in different domains.
➢ “E-TECH in the Aid of Farmers,” it refers to the use of hardware, software, websites and
mobile apps to support farmers in their agricultural practices and enhance their overall
productivity and income.
50.4.2 Body1: how E-Tech helps in Agri-production
➢ Precision Agriculture: The use of sensors, GPS technology, and data analytics to apply exat
amount of irrigation, fertilization, and pesticides. This helps farmers minimize resource
wastage while maximizing yields.
➢ Remote Monitoring: their crops and livestock using cameras, drones, or satellite imagery.
This allows them to detect potential diseases/ predators/ problems early and respond
promptly.

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 ➢ Farm Management Software: like farm management apps and software provide farmers with
tools for planning, scheduling, and income - expense record-keeping and inventory
management.
➢ Government can use it provides for providing agriculture extension services, weather
forecast etc. → better output by farmers. Notable Examples- Kisan Suvidha Portal, MKisan
Portal
50.4.3 Body2: how E-Tech helps in Agri-marketing
➢ Market Access and Information: to connect farmers directly to markets, buyers, and traders,
providing real-time information on commodity prices, market trends, and demand.
➢ Notable portals by Government: eNAM, AgriMarket, Kisan Bandi, e-Sahamathi, e-RaKAM,
50.4.4 ✍️Conclusion link with SDG
➢ Yes this is required for doubling farmer income.
➢ (SDG 1) No Poverty, - (SDG 2) Zero Hunger, - (SDG 3) Good Health and Well-being (thru
availability of affordable food without inflation).
50.5 📲D IGITAL PUBLIC INFRASTRUCTURE (DPI)
• The Digital Agriculture Mission 2021–2025 aims to modernise agriculture through advanced
technologies like AI, remote sensing, drones,
• Digital Public Infrastructure (DPI) is a set of tools/open-source codes which can be used for
developing variety of application, (similar to UPI/ONDC) e.g.
DPI component usage
Krishi Decision Support System (Krishi-DSS) to integrate and store in a
standardized form relevant geospatial and non-geospatial data, such as
Krishi-DSS
remote-sensing data, weather data, soil data, crop signature library, reservoir
data, groundwater data, and data pertaining to Government schemes.
a geospatial mobile application for all the land-based schemes, which enables
Krishi Mapper
geo-fencing (polygon creation / latitude-longitude).
Digital India Land Records Modernization Programme (DILRMP). to
modernize land record management, minimize disputes
DILRMP
will include land-wise information on crops, which is crucial for managing the
steady demand and supply of agricultural products.
ULPIN or Bhu- for assigning unique number for each land-plot, linked with its owner’s aadhar
Aadhaar card.
Module for
cheap loans to farmers under various scheme, via Kisan Credit Card
JanSamarth

50.5.1 📲🥰 DPI - benefits?

• Government can deliver the subsidies in more optimized manner.

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 • food processing companies can streamline supply chain management, operations, reducing
wastage and improving efficiency using precise data on crop readiness and harvest times.
• Banking / NBFC/ insurance Companies will be able to develop tailored products that meet
the specific needs of farmers, expanding their market reach and revenue potential.
• Bank/NBFC will be able to assess creditworthiness of farmer more effectively- by checking
their income, Digital transaction, prop yields etc.
• Digital land records may streamline the process of using land as collateral for loans,
improving farmers’ access to credit.
• Faster clearance of land disputes.
50.6 BIOTECHNOLOGY TO HELP FARMERS

(Definition:) Biotechnology is a branch of science that involves manipulating genes and cells- to
develop new medicines, improve crops, and find solutions to environmental issues. (रंगसूत्रों और कोष में
बदलाव द्वारा नई दवाइयाँ, नई फ़सल और पर्यावरण की समस्याओं का हल करने के लिए विज्ञान का इस्तेमाल को जैविक प्रौद्योगिकी कहते हैं)
Bio technology can help the farmers in following ways:
- Bt-Cotton has reduced pesticide input costs, and increased production of cotton. Similar benefits
in utilising other genetically modified crops.
- Horticulture: fruits and vegetables demand increasing with population. But production not
increasing with conventional breeding techniques. Tomatoes susceptible to climate change and
viral diseases. Development of GM tomato, papaya and watermelon etc. can help. Similar
strategy can be adopted in floriculture and ornamental crops.
- Sexing of semen and embryos (by removing the Y chromosome) → only female cattle can be
produced → milk production improved → income improved.
- Cloning, somatic cell nuclear transfer, transgenic animals → improving the breed quality,
making them disease and climate resistant. Examples
o Transgenic cow can produce milk with a more balanced product for human babies than
natural cow-milk. → More income by selling such premium products.
o Disease free Shrimp broodstock (=parent shrimps who are used for reproduction).

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- recombinant DNA technology → Vaccine development → animal diseases controlled. →
farmers’ animal upkeeping cost declined.
- Health supplements, Protein powders, gluten-free foods, Weight loss/ diet food, Bio-fortified rice
etc. = whatever biotech research is done in this area = ultimately creates new demand for new
type of crops/ingredients = income for farmers.

50.6.1 😰
Biotech Challenges to Indian Agriculture (समस्याएं )
- Environmental and biosafety concerns related to GM Crops पर्यावरण को हानी
- Brain drain. Talented biotech scientists leave for Jobs in MNC Giants in USA/EU due to lack of
remunerative and respectable jobs in India. (प्रतिभावान युवा अवसरो की कमी के चलते देश से पलायन)
o Public sector jobs: ICAR jobs mostly seniority based promotion.
o Pvt sector jobs: Indian seed fertiliser companies not spend enough on R&D (due to
jugaad mentality- identified by ES), so high-paying jobs for agri-biotech specialists not
available easily in India.
- Ethical concerns related to cloning and sex-selective reproduction of animals. (नैतिक आयाम)
- Rapid mass-adoption without pilot studies can cause problem. E.g. Indian farmers had started
using Switzerland company’s Tomato seeds but later found it to be vulnerable to certain viral
diseases- resulting in massive crop losses. (स्विट्ज़रलैंड की टमाटर की प्रजाति अपनाकर बर्बाद हुए भारतीय किसान।
क्योंकि वह प्रजाति कु छ रोगों के खिलाफ़ बोहोत ही कमज़ोर थी और दवाइयों से भी असर नहीं हुआ।)

50.6.2 🌽👨🏼‍🔬👨🏼‍🏫 Agriculture Research→ Agri- Life Science (कृ षि जीवन विज्ञान)
Table 1: it has four categories

1) Agricultural Biotechnology e.g. develop seeds, fertilizer, pesticides which are less
harmful to environment and human health
2) Novel Farming Systems e.g. indoor farming, aquaculture, algae-farming,
(नवीन कृ षि प्रणाली) using insects as as fish-feed.
3) Bioenergy (जैव ईंधन) e.g. using agriwaste to generate bio-ethanol & electricity
4) Innovative Foods (अभिनव खाध्य) e.g. lab-grown meat, Soya-milk etc.
 🤩Benefits? food production↑ , food/nutrition security, energy security, environmentally
sustainable, export earning. (खाद्य उत्पादन,पोषण सुरक्षा, ऊर्जा सुरक्षा, पर्यावरण की दृष्टि से टिकाऊ, निर्यात आमदनी।)
 😥Challenges? Shortage of capital, shortage of SKILLED manpower. Startup Companies more
focused on e-commerce rather than agriculture. regulatory problems in genetically modified
(GM) crops. लेकिन भारत में यह क्षेत्र ज़्यादा विकसित नहीं हो पाया क्योंकि पूं जी और मानव सं साधन की कमी, स्टार्ट-अप
कं पनीयो का रुझान इ-कोमर्स की ओर। जीएम फ़सलो के बारे मे नियमो में असमंजस

✍️ Conclusion: Thus, the use of biotechnology in agriculture and animal husbandry Can improve
the agriculture production And make it resilient to disease and climate change, Thereby improving
the income of farmers. Hence, reinforcing the agricultural research ecosystem with human and
financial resources will continue to pay rich dividends to farmers and to the nation. Need of the hour

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is to address the challenges in its adoption, to achieve SDG goals related to food security and poverty
removal.
50.7 SCIENTISTS’ CONTRIBUTION TO AGRICULTURE
50.7.1 🧑‍⚕️ Scientist: M. Visvesvaraya and Water Engineering
- Every year India celebrates Engineer’s Day on September 15, the birth anniversary of
Mokshagundam Visvesvaraya, the engineering pioneer of India.
- He was chief engineer of the Krishna Raja Sagara Dam project in Mysore
- He invented automated doors that regulate the water overflows from dam. He patented the
floodgates.
- These inventions improved dam design, irrigation facilities in India, also saved thousands of
people from ravaging floods, especially in Hyderabad, Mysore, Maharashtra and Odisha.
- In 1955, M. Visvesvaraya was awarded ‘Bharat Ratna’ for his exceptional contribution to the
water engineering of India.
50.7.2 🧑‍⚕️ Scientist: Swaminathan and Green Revolution
- In 1960, when India was facing mass shortage of food, M S Swaminathan & Norman Borlaug
developed the HYV (high yielding variety) of wheat and rice and introduced to farmers under
the “Green Revolution”.
- Modified the wheat Sonora-64 and Lerma Rojo-64 with Gamma Rays. Conducted their field
trials at Delhi’s Jaunti village (1965) → Wheat yield improved from 1.5 tonnes to 4.5 tonnes per
hectare. It helped making India self sufficient in food grains.
- As the director general of the Indian Council of Agricultural Research (ICAR), he also mentored
Young agri scientist and expanded the network of Krishi Vigyan Kendras.
- Awards? Padma Shri, Padma Bhushan, Ramon Magsaysay Award, & World Food Prize.
50.8 📕ES24: A FARMER-FRIENDLY POLICY FRAMEWORK (FROM CH.5)
CEA done a lot of Bol-Bachchan worth 2–3 pages. I’m not copy pasting everything here but only the
CRUX of the matter for Mains:
• Government should not ban commodity futures/options markets at the first sign of inflation.
Because it creates uncertainty for the investors.
• Government should ban agri-exports only under exceptional circumstance. AND should not
ban it for routine inflation-control.
• RBI required to keep CPI inflation in 2–6%. Food-beverages account for 45% weight in CPI.
But food inflation caused mostly by supply side factors, RBI cannot fix it. (Ref: Pillar#1A2-
limitations of monetary policy.) So, government should re-examine the inflation-targeting
framework.e.g. by giving DBT to poor families to purchase food.
• India’s irrigation efficiency is only 30–40% for surface water and 50–60 per cent for
groundwater. Need to explore drip and fertigation to cut down water and fertiliser use by
almost 50%
• Need to increase the Total Net Irrigated Area.

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 • Climate change / sustainable agriculture: promote Direct Seeded Rice (DSR), organic
farming for some crops to save water and chemical fertilisers.
• Promote crops other than rice. (Refer crop-diversification section for more)
• late-1970s Chinese farmers’ income doubled within 6 years → increased demand for
manufactured goods in rural areas → manufacturing revolution. India can also benefit if we
can replicate this model.

50.8.1 ✍️ Agriculture-Conclusion (निष्कर्ष)

 Agriculture is the largest sector of Indian economy in terms of number of people employed. For
their income security, as well as entire India’s food & nutritional security, we’ve to focus on
improving soil, irrigation, seed, fertilizers, market reforms etc. <insert name of x y z> scheme is
important in that regard. (रोजगार के हिसाब से कृ षि भारत का सबसे बड़ा क्षेत्र है. किसानो की आय, तथा भारत की खाद्य,
पोषण सुरक्षा के लिए जमीन, सिंचाई, बीज, उर्वरक और बाजार में सुधार जरूरी)
 And / or to double the farmers income, we’ve to focus on Horticulture / Floriculture / Fisheries /
Animal Husbandry / Poultry / Food Processing / Extension Services and therefore addressing

🚩💪F
aforementioned <insert name of > challenges is need of the hour.
51 ARMER PRESSURE GROUPS

Even before the rise of nationalist movement by the Congress, farmers had begun agitating against
the injustice of the British - such as indigo planters (1860) and Malabar (1921). Farmer agitations:
before and after Independence

- During British Raj: Champaran, Bardoli etc. read history books. आपको पता होना चाहिए।
- Tebhaga movement (1946-47): Sharecroppers (Bargadaar) refused to pay excess rent to Jotedaar
(landlords) and Mahajan’s (Moneylenders).
- Telangana peasant uprising (1946-51) resulted into armed struggle , death of many farmers.
- Naxalbari (1967): North W.Bengal- led by tribals and the radical communist - seized the rice and
land of landlords.
- Bharatiya Kisan Union (BKU) agitation to reduce electricity bills for farmers in UP / N.India.
- 2018: 10,000+ farmers enter Mumbai with demands for relief in loans, remunerative prices at
Mandi.
- 2020–2021: farmer protests against 3 Farm Bills. Ultimately, government withdrew the bills.
FARMER PRESSURE GROUPS INDUSTRIALIST PRESSURE GROUPS
- All India Kisan Congress / Kisan Sabha Confederation of Indian Industry (CII),
Federation of Indian Chambers of Commerce

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 FARMER PRESSURE GROUPS INDUSTRIALIST PRESSURE GROUPS
(Affiliated with CPI/Communists) and Industry (FICCI), Associated Chambers of
- Bharatiya Kisan Union (BKU) in western Commerce and Industry of India
Uttar Pradesh, primarily focused on the big (ASSOCHAM), National Association of
farmers. with leaders Charan Singh and Software and Service Companies (NASSCOM)
Mahendra Singh Tikait. Later on Mahendra etc.
Singh Tikait’s son Rakesh Tikait
spearheaded the 2020-21’s Anti-farm bill
protests.
- Shetkari Sangathan (SS): Maharashtra,
Gujarat led by Sharad Joshi. - primarily
focused on cotton/sugarcane /dairy
farmers.
Methods of protest / lobbying Methods of protest / lobbying
- Non-cooperation: in paying rent / tax / - Lobbying: by communicate directly with
crop-share. government officials, policymakers, and
- Forcible occupation of landlord’s property legislators to advocate for their interests
& violence with weapons (e.g. Naxalbari) - Public Relations (PR) and Media
- Long March from villages to the capital city Campaigns: using newspapers, television,
e.g. Lucknow, Mumbai, Delhi. radio, and social media, to raise public
- Gherao (encirclement), dharna (sit-in), awareness about their concerns and issues.
raasta roko (traffic obstruction), e.g. Need for reducing GST on X item.
demonstration. - Policy Research and White Papers on
- Hunger strike, self-immolation. specific issues affecting their industries.
- - Throwing the milk / potatoes on the road - Participating in Government Committees
to highlight the issue of money price. - Financial Contributions and Donations to
political parties.
- Organizing Protests and Demonstrations: a
method used by small traders e.g. for
posing the entry of Walmart shopping
malls.
- Legal Action: by filing lawsuits or seeking
court interventions, to challenge policies or
decisions they perceive as unfavorable.
- Networking and Coalitions with groups /
political parties in other nations
- - Informal Influence thru wine and dine
parties with politicians and bureaucrats.

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✍️Conclusion: Article 19 accords all citizens the right to form associations and express; and right to
assemble peaceably and without arms. Need of the hour is to ensure that farmers associations’
opinions/demands are taken into account while making new policies and schemes, but at the same
time, ensuring their protests don’t disturb the law and order or cause inconvenience to the other
citizens.

51.1 ⚖️ 3 F ARM LAWS REPEALED

Note: I feel this Is outdated/ obscure topic. So not teaching it in detail. If u’ve time / interest- watch
my 2020’s free lecture [Win20] for more in-depth analysis /teaching of this topic:
https://unacademy.com/class/mrunals-win20csp-economy-pillar4a-agriculture-apmc-ordinance-
etc/NSZOPE04

- (Origin) For a long time, union government had been trying to convince the state governments
to adopt the model APMC act to reform the APMC system. But this was not happening in letter
and spirit due to opposition by some state governments.
- Then in the Corona year 2020, Union came up with 3 farm laws to fix the inefficiencies in the
marketing, contract farming and storage of the farm produce.

3 farm laws Objective Criticism /Apprehensions

Farmers’ Produce Trade Reform State APMC Acts. - Union encroached on States’ powers
and Commerce Give facility to farmers to sell to make agri-laws, prohibited states
(Promotion and it to people/organizations from charging taxes on APMC.
Facilitation) outside APMC. - Big traders/MNCs cud exploit
farmers.
Ordinance/Act, 2020.
- Liberalisation / Deregulation of a
कृ षि उपज व्यापार वाणिज्य के
sector has not always helped
लिए कानून
consumers e.g. in case of education,
health (looting by private
colleges/hospitals)
Farmers (Empowerment  Contract farming  Apprehension among farmers that it
and Protection) agreement means an will empower the MNCs, impose

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 3 farm laws Objective Criticism /Apprehensions
Agreement on Price advance agreement penalties on farmer for not
Assurance & Farm between the farmer supplying good quality of produce
Services Ordinance/Act, and the buyer agent, etc.
2020. before the production
(अनुबं ध खेती: ग्राहक और किसान of farm commodities.
 This new law aimed to
के बीच, कृ षि उत्पादन से पहले,
reform the State laws
किया गया एक अग्रिम समझौता
to protect both farmer
है)
and buyer (food
processing company)
Essential Commodities  To help food  Farmers were not opposed to this
(Amendment) processing companies because it was meant for food
Ordinance/Act, 2020 in stock limits. processing company stock limit.
आवश्यक वस्तु अधिनियम  However, because of the
disinformation campaign by
opposition, the government had to
‘undo/repeal’ this reform as well.
51.1.1 Government repealed the 3 farm laws in 2021-Dec, WHY?
 😥) Govt was unable to convince the farmers. (किसान-प्रदर्शन, सरकार उन्हें मनाने में नाकामयाब रही।)
 Non-stop farmer protests at Singhu border at Delhi-Haryana. Traffic-jam problem for other
citizens. Incidents of mob lynching. (आंदोलन के चलते यातायात/परिवहन पर असर. भिड़ द्वारा लोगों का वध)
 😥) farm laws were suspended/dead from 2021-Jan: because Supreme Court had stayed farm
laws implementation “until further orders” (वैसे भी सुप्रीम कोर्ट ने इन क़ानूनों को स्थगित ही कर दिया)
 😥) the present farmer protests were preventing government from doing other set of reforms in
agriculture such as urea subsidy electricity subsidy etc. (सरदार यूरिया सब्सिडी, बिजली सब्सिडी में सुधार करना
चाहती थी लेकिन इन कानूनों के विरोध की आग में वो काम भी अटक गया था)
 😥) protesting farm leaders were demanding a new law to make MSP a legal right, similar to the
National Food Security Act. but this is financially difficult for the union government. But now
the protesters will return to their homes so farm leaders will not be able continue the protests for
MSP-legal right in an effective manner. (आंदोलनकारी किसानों न्यूनतम समर्थन मूल्य को क़ानूनन अधिकार बनाने की
माँग कर रहे थे, लेकिन पैसों की क़िल्लत के चलते सरकार के लिए वो करना सं भव नहीं है।)
😥 Unofficial reasons: keeping farmers happy before upcoming State Vidhan Sabha elections in UP
and Punjab.

51.1.2 ⚖️👩🌾🛒 👋👋
‍ : Farm Laws Repeal ka Criticism
Agriculture economist Dr. Ashok Gulati argues that govt’s decision to repeal 3 farm laws was
unnecessary because: (सरकार ने इन क़ानूनों को रद नहि करना चाहिए था क्योंकि)

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 These laws would have helped in
o 🛒creating one nation one market for barrier-free trade in agriculture (बाधाओं से मुक्त राष्ट्रीय
कृ षि बाजार का निर्माण )
o 💸↑ private investment, competition in the agriculture sector (निवेश और स्पर्धा को प्रोत्साहन)
o 🤑doubling farmers’ income. (किसानों की आय दुगनी करने में मदद )
 all farmers of entire India were not against the farm law reforms. Only a few vested interests were
protesting against it. Govt unnecessarily surrendered for electoral politics. (पूरे भारत वर्ष के सभी
किसान तो इसका विरोध नहीं कर रहे थे। सरकार सिर्फ़ चुनिंदा आंदोलनकारियों के सामने चुनावी समीकरणो के डर से झुक गयी)
 😥 Cropping patterns will remain skewed in favour of rice and wheat, resulting in subsidy
burden, ground water exploration, crop-stubble burning & air pollution. (अब वही सब पुरानी गेहूं चावल
की खेती बाड़ी होती रहेगी, सब्सिडी का बोझ, भुजल का दुरुपयोग, पराली जलाने पर वायु प्रदूषण होते रहेगा)
 😥 Farmer will be continued to be exploited at the hand of APMC traders. Consumers will
continue to suffer from food inflation from middlemen commissions. (मंडी के दलालों दवारा किसानों का
शोषण जारी रहेगा ग्राहकों के लिए खाद्य पदार्थों महँगे ही रहेंगे।)
⚖️👩‍🌾🛒: ✍🏻Conclusion : Agro-Act#1: (निष्कर्ष)
51.1.3
👳‍♂️🙏🧔🙏Successive union govts tried to convince the state govts to implement the model laws for
reforming APMC mandis & Contract farming sector viz.
o 2017: Model Agricultural Produce and Livestock Marketing Act 2017 (APLM: मॉडल कृ षि
उपज और पशुधन विपणन) covering both Agro commodities as well as livestock, fisheries and
poultry.
o 2018: Model Contract Farming Act, 2018 → (concurrent list) → aims to protect farmers
engaged in contract farming
 But such model laws were not adopted uniformly across all the states of India. (उत्तरोत्तर समय में बनी
कें द्र सरकारों ने राज्यों को आदर्श कृ षि कानून लागू करने के लिए मनाने की कोशिश की, लेकिन असफल.)
 🤧😷Coronavirus → economic slowdown → forced union government to implement farm
reforms at a faster pace. (कोरोना-आर्थिक मंदी ने कें द्र सरकार को जल्दी से कृ षि सुधार लागू करने के लिए मजबूर किया)
 But sadly the govt was unable to convince a section of farmers and contain their protests.
Ultimately, Govt has repealed the laws, for preventing further complications in law and public
order. (हालाँकि किसानों के एक वर्ग को मनाने में सरकार असफल रही। और उनके लगातार आंदोलनो के चलते क़ानून व्यवस्था की
समस्याऑ को देखते हुए, सरकार ने है इन कृ षि-सुधार क़ानूनों को रद्द किया.)
 Process of economic reforms has to be more consultative, more transparent to the potential
beneficiaries. It takes patience and humility to implement reforms. (भविष्य में कृ षि सुधार और आर्थिक
सुधार से पहले सरकार ने ज़्यादा लोगों का विश्वास-सम्पादन करना चाहिए, धैर्य और विनम्रता से कार्य करना ।)
 In future, BJP-ruled States’ govts may reform their State-APMC laws. Once those BJP-states do it
(and their local farmers benefit from it), then seeing their example-case study, the other states
will do it sooner or later. (हालाँकि भविष्य में BJP शासित राज्य सरकारें अपने कृ षि क़ानूनो में सुधार कर सकती है, और वहाँ
के किसानो को लाभ होगा उसे देखकर अन्य राज्यों पर भी दबाव बनेगा कि वे भी ऐसे कृ षि-क़ानून सुधार करे।)

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Shorter conclusion: Government should try to take the farmer leaders, opposition parties into
confidence and also showcase some pilot studies to farmers, with help of state governments before
implementing such mega reforms in future.

51.2 🥛N EW MINISTRY OF COOPERATION

Previously, Ministry of agriculture used to look after the affairs related to cooperative societies. But
2021: a new ministry of cooperation was setup.

51.2.1 🧑🤝🧑🤩
‍ ‍ Benefits of setting up New Ministry
 Cooperative Sector by and large suffers from politicisation, casteism and financial scams.
Agriculture Minitry is burdened with farmer-dairy welfare initiatives- so unable to give much
attention here. कृ षि मं त्री का ज्यादातर ध्यान किसानों के कल्याण के बारे में व्यस्त रहता है इसलिए सहकारी क्षेत्र में
राजनीतिकरण, जातिवाद, वित्तीय गबन समस्याएं सुलझाने के लिए जरूरी ध्यान नहीं दे पाता.
 A dedicated Cooperative Ministry can help cleaning up the mess. एक अलग मंत्रालय बनाया जाए तो ये सब
कचरा साफ किया जा सकता है.
51.2.2 🧑🤝🧑😰‍ ‍ Challenges against New Ministry (नए मंत्रालय के सामने चुनौतियां)
 Non-BJP states fear Union will encroach upon States’ jurisdiction in control over Cooperative
organizations and APMCs. (राज्यों के सहकारी सं गठन-कृ षि बाजार नियं त्रण सत्ता पर कें द्र का अतिक्रमण का डर)
 Opposition Parties fear the new ministry’s administrative/legal powers will be misused to harass
political leaders accused in Cooperative Scams e.g. PMC Bank Scam. (विविध सहकारी सं गठन कांड की जांच
के बहाने (अमित शाह) द्वारा विपक्षी नेताओं को परेशान किया जाएगा- ऐसा विपक्ष को डर है)
 So, without ‘active cooperation’ & confidence building of (non-BJP) State Governments, this new
ministry will struggle to accomplish its goal. (अतः गैर बीजेपी राज्य सरकार के विश्वास सं पादन तथा सहकार के बिना
यह मंत्रालय ठीक से काम नहीं कर पाएगा)
 Amul and IFFCO are profitable due to professional CEOs and managers.
 But other Govt sponsored cooperative orgs such as NAFED are manned by IAS officers who
o A) are politically-aligned to ruling party & not immune to political pressures and/or
o B) lack the specialised MBA type knowledge for branding/biz management
(भारत में कृ षि डेयरी चीनी मील कपड़ा बैंकिं ग वित् इत्यादि में एक लाख से ज़्यादा सरकारी सोसाइटी है हालाँकि इनमें ज़्यादातर सं स्थान
जातिवाद, राजनीतिकरन और वित्तीय ग़बन से जूझ रहे हैं। सरकार द्वारा सं चालित इस प्रकार के सं स्थानों ने आइएएस अफ़सर की जगह
पेशेवर मैनेजरों को उच्च पदों पर नियुक्त किया जाए तो बेहतर से काम हो सकता है- अमूल और इफको की तरह)
Conclusion: It is an appreciable step by the government to ensure that the cooperative sector
deserves dedicated attention via a dedicated Ministry. Need of the hour is to take the state

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governments in confidence, and jointly clean up the corruption, scams and inefficiencies in the
cooperative organisations.
51.2.3 📕
ES24: PACS - scope for Synergy for rural development
Primary Agricultural Credit Societies (PACS) can be utilised for rural dev. in following ways:
• PACS can run common service centres (i.e. sarkaari-cybercafes) so rural-citizens can access
to e-services / apply for government schemes /fill up forms for government exams etc.
• PACS can run LPG distribution and petrol/diesel pump dealership.
• PACS can run PM-Janaushadhdi Kendra for selling cheap drugs.
• PACS can run Pradhan Mantri Kisan Samridihi Kendra - for selling fertiliser pesticides, agri-
machinery.
• PACS can run drone operations for spraying fertilizer/pesticides.
• PACS can run ‘paani samiti’ (water committee) to undertake operations and maintenance
work for the piped water supply.
• PACS can run decentralised solar power plants.
• PACs can provide the centralised food godown / warehouse facility for FCI.

51.3 ✍️M AINS QUESTIONS- ECONOMICS OPTIONAL SE HANDPICKED

1. “Declining Public Expenditure in agriculture is largely responsible for declaration of growth in
this sector in India.” Critically examine the validity of this statement. (2010)
2. State five reasons that support government intervention in agricultural markets. (2013)
3. “Agriculture is not just a sector contributing a small proportion of GDP, it is a way of life for the
Indians.” Discuss. (2012)
4. Agriculture has an important role to play in the economic development of a developing agrarian
economy. Do you agree? Explain fully. (2000)
5. What role do the subsidies play in agricultural development of India? (2001)
51.3.1 ✍️Mains Questions: Agro → WTO Impact
What are the direct and indirect subsidies provided to farm sector in India? Discuss the 2023
issues raised by the World Trade Organization (WTO) in relation to agricultural GSM
subsidies. (भारत में कृ षि क्षेत्र को प्रदान की जाने वाली प्रत्यक्ष एवं अप्रत्यक्ष सब्सिडी क्या है? विश्व व्यापार सं गठन
(डब्ल्यू० टी० ओ०) द्वारा उठाए गए कृ षि सब्सिडी सं बं धित मुद्दों की विवेचना कीजिए।)
Discuss the prospects and challenges faced by Indian Agriculture due to World Trade Opt-
Organisation (WTO) provisions. (विश्व व्यापार सं गठन (डब्ल्यूटीओ) के प्रावधानों के कारण भारतीय कृ षि द्वारा Eco'22
सामना की जाने वाली सं भावनाओं और चुनौतियों पर चर्चा करें।)
Analyse the effects of TRIPS Agreement on Indian agriculture. (भारतीय कृ षि पर TRIPS समझौते Opt-
के प्रभावों का विश्लेषण करें।) Eco'21
Discuss the characteristic features of Agreement on Agriculture (AOA) under Uruguay Opt-
Round of GATT and examine its impact on Indian agriculture. (GATT के उरुग्वे दौर के तहत Eco'23
कृ षि (एओए) पर समझौते की विशिष्ट विशेषताओं पर चर्चा करें और भारतीय कृ षि पर इसके प्रभाव की जांच करें।)
Analyse the effectiveness of the major commitments of Agreement on Agriculture (AOA) Opt-

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 of the Uruguay Round of WTO on Indian agriculture. ( भारतीय कृ षि पर डब्ल्यूटीओ के उरुग्वे दौर के Eco'21
कृ षि (एओए) पर समझौते की प्रमुख प्रतिबद्धताओं की प्रभावशीलता का विश्लेषण करें।)2021

51.3.2 ✍️Mains Questions: Agro → Land Reforms

Q. What were the factors responsible for the successful implementation of land reforms 2024
in some parts of the country? Elaborate. देश के कु छ भागों में भूमि सुधारों के सफल कार्यान्वयन के लिए
उत्तरदायी कारक क्या थे? स्पष्ट कीजिए। (10m, 150 words)
State the objectives and measures of land reforms in India. Discuss how land ceiling 2023
policy on landholding can be considered as an effective reform under economic criteria.
(भारत में भूमि सुधार के उद्देश्यों एवं उपायों को बताइए । आर्थिक मापदंडों के अंतर्गत, भूमि जोत पर भूमि सीमा नीति को
कै से एक प्रभावी सुधार माना जा सकता है, विवेचना कीजिए।)
Explain the concept of ceiling on agricultural landholding in India. Examine its Opt-
rationality with respect to equity and efficiency. (भारत में कृ षि भूमि पर छत की अवधारणा को बताएं । Eco'23
इक्विटी और दक्षता के सं बं ध में इसकी तर्क सं गतता की जांच करें।)
How did land reforms in some parts of the country help to improve the socio-economic 2021
conditions of marginal and small farmers? देश के कु छ भागों में भूमि सुधारों ने सीमांत और लघु किसानों की
✅
सामाजिक-आर्थिक स्थिति कि सुधारने के लिए किस प्रकार सहायता की है? Solved in FREE CLASS
Discuss the role of land reforms in agricultural development. Identify the factors that 2016
were responsible for the success of land reforms in India.
Establish the relationship between land reform, agriculture productivity and elimination 2013
of poverty in Indian Economy. Discussion the difficulty in designing and implementation
of the agriculture friendly land reforms in India.
Do you think that effective land reforms are necessary but not sufficient conditions for Opt-
raising agricultural productivity in India? Explain your answer. (क्या आपको लगता है कि भारत में Eco'21
कृ षि उत्पादकता बढ़ाने के लिए प्रभावी भूमि सुधार आवश्यक हैं लेकिन पर्याप्त परिस्थितियां नहीं हैं? अपना जवाब
समझाएं ।)

51.3.3 ✍️
Mains Questions: Agro → Cropping & irrigation
GSM3 Syllabus Topic: Major crops cropping patterns in various parts of the country, different types
of irrigation and Land reforms in India.
Discuss, how the green revolution has affected the indigenous crops in India? What measures Opt-
have been initiated by the Government in the later years to improve the productivity ? (चर्चा करें, Eco'22
हरित क्रांति ने भारत में स्वदेशी फसलों को कै से प्रभावित किया है? उत्पादकता में सुधार के लिए बाद के वर्षों में सरकार द्वारा किन उपायों
की शुरुआत की गई है?)
(Examine the impacts of Green Revolution on production and productivity in the agriculture Opt-
sector. ((कृ षि क्षेत्र में उत्पादन और उत्पादकता पर हरित क्रांति के प्रभावों की जांच करें।) Eco'23
Explain the changes in cropping pattern in India in the context of changes in consumption 2023
pattern and marketing conditions. (खपत पैटर्न एवं विपणन दशाओं में परिवर्तन के सं दर्भ में, भारत में फसल प्रारूप
(क्रॉपिंग पैटर्न) में हुए परिवर्तनों की व्याख्या कीजिए।)
From being net food importer in 1960s, India has emerged as a net food exporter to the world. 2023
Provide reasons. (1960 के दशक में ख्याधआयातक होने से, भारत दुनिया के लिए खाद्य निर्यातक के रूप में उभरा है। कारण

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 प्रदान करें।)
Q04. How and to what extent would micro-irrigation help in solving India's water crisis? भारत के 2021
✅
जल सं कट के समाधान में, सूक्ष्म-सिंचाई कै से और किस सीमा तक सहायक होगी? Solved in FREE CLASS
What is the present challenges before crop diversification? How do emerging technologies 2021
provide an opportunity for crop diversification? फ़सल विविधता है के समक्ष मौजूदा चुनौतियाँ क्या हैं? उभरती
✅
प्रौद्योगिकीयाँ फ़सल विविधता के लिए किस प्रकार अवसर प्रदान करती है ? Solved in FREE CLASS
What are the major factors responsible for making rice-wheat system a success? In spite of this 2020
success how has this system become bane in India? (धान-गेहूं प्रणाली को सफल बनाने के लिए कौन-से प्रमुख
कारक उत्तरदायी हैं? इस सफलता के बावजूद यह प्रणाली भारत में अभिशाप कै से बन गई है?)
How far is the Integrated Farming System (IFS) helpful in sustaining agricultural production? 2019
Elaborate on the impact of the National Watershed Project in increasing agricultural production
from water-stressed areas.
Sikkim first ‘Organic State’ in India. What are the ecological and economical benefits? 2018
Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity 2018
and income of horticulture farms. How far has it succeeded in increasing the income of farmers?
How has the emphasis on certain crops brought about changes in cropping patterns in recent 2018
past? Elaborate the emphasis on millets production and consumption.
What are the major reasons for declining rice and wheat yield in the cropping system? How crop 2017
diversification is helpful to stabilize the yield of the crop in the system?
What is water-use efficiency? Describe the role of micro-irrigation in increasing the water-use 2016
efficiency.
What is allelopathy? Discuss its role in major cropping systems of irrigated agriculture. 2016
Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop 2016
insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY)

51.3.4 ✍️
Mains Questions: Agro →E-Tech. in aid of farmers
GSM3 Syllabus Topic: e-technology to aid farmers, Technology missions;
How does e-Technology help farmers in production and marketing of agricultural 2023
produce? Explain it. (कृ षि उत्पादों के उत्पादन एवं विपणन में ई तकनीक किसानों की किस प्रकार मदद करती है?
इसे समझाइए)
Explain various types of revolutions, took place in Agriculture after Independence in 2017
India. How these revolutions have helped in poverty alleviation and food security in
India?
How can the ‘Digital India’ programme help farmers to improve farm productivity and 2015
income? What steps has the Government taken in this regards?
51.3.5 ✍️Mains Questions: Agro →Food processing industry / Marketing
GSM3 Syllabus Topic: Food processing and related industries in India (scope & significance,
location, upstream-downstream requirements, supply chain management); storage, transport &
marketing of agro-produce and related issues & constraints; Economics of animal-rearing
Analyse the new initiatives taken by the Government of India to boost food processing sector. Opt-
(खाद्य प्रसं स्करण क्षेत्र को बढ़ावा देने के लिए भारत सरकार द्वारा की गई नई पहलों का विश्लेषण करें।) Eco'21
What are the main bottlenecks in upstream and downstream process of marketing of agricultural 2022

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 products in India? (भारत में कृ षि उत्पादों के विपणन की ऊर्ध्वमुखी और अधोमुखी प्रक्रिया में मुख्य बाधाएँ क्या हैं?)
✅Solved in Youtube
Elaborate the scope and significance of the food processing industry in India. (भारत में खाद्य प्रसं स्करण 2022
✅
उद्योग के कार्यक्षेत्र और महत्व का सविस्तार वर्णन कीजिए) Solved in Youtube
What are the challenges and opportunities of cooperative sector in the country? Explain how the Mock
establishment a dedicated ministry for this subject help in this regard. (देश में सहकारी क्षेत्र की चुनौतियां
और अवसर क्या हैं? समझाइए कि इस विषय के लिए एक समर्पित मंत्रालय की स्थापना इस सं बं ध में कै से मदद करता है)
What are the challenges and opportunities of food processing sector in the country? How can 2020
income of the farmers be substantially increased by encouraging food processing? (देश में खाद्य
प्रसं स्करण क्षेत्र की चुनौतियां एवं अवसर क्या है? खाद्य प्रसं स्करण को प्रोत्साहित कर कृ षकों की आय में पर्याप्त वृद्धि कै से?)
What are the main constraints in transport and marketing of agricultural produce in India? (भारत 2020
में कृ षि उत्पादों के परिवहन एवं विपणन में मुख्या बाधाएँ क्या हैं?)
Discuss the factors for localization of agro-based food processing industries of North-West India. 2019
(उत्तर-पश्चिमी भारत के कृ षि-आधारित खाद्य प्रक्रमण उद्योगों के स्थाणुयकरण के कारकों पर चर्चा कीजिए |
Elaborate on the policy by the govt of India to meet the challenges of the food processing sector. 2019
Examine the role of supermarkets in supply chain management of fruits, vegetables and food 2018
items. How do they eliminate number of intermediaries?
What are the reasons for poor acceptance of cost effective small processing unit? How the food 2017
processing unit will be helpful to uplift the socio-economic status of poor farmers?
Livestock rearing has a big potential for providing non-farm employment and income in rural 2015
areas. Discuss suggesting suitable measures to promote this sectors in India
In view of the declining average size of land holdings in India which has made agriculture non- 2015
viable for a majority of farmers, should contract farming and land leasing be promoted in
agriculture? Critically evaluate the pros and cons.
What are the impediments in marketing and supply chain management in industry in India? Can 2015
e-commerce help in overcoming these bottlenecks?
There is also a point of view that agriculture produce market committees (APMCs) set up under 2014
the state acts have not only impeded the development of agriculture but also have been the cause
of food inflation in India. Critically examine.
India needs to strengthen measures to promote the pink revolution in food industry for better 2013
nutrition and health. Critically elucidate the statement.
51.3.6 ✍️
Mains Questions: Agro → MSP / PDS
GSM3 Syllabus Topic: Farm subsidies and MSP and issues therein (direct and indirect); PDS
(objectives, functioning, limitations, revamping, issues of buffer stocks & food security)
Critically examine the need and feasibility of providing agriculture-debt waiver to small and mock
marginal farmers of India. कर्जा माफी देने की जरूरत और व्यवहारिकता पर गंभीर समीक्षा कीजिए
Enumerate the salient features of the agriculture reform laws issued by the union government in mock
2020 and discuss the reasons behind their repeal. (कें द्र सरकार द्वारा 2020 में जारी किए गए कृ षि सुधार क़ानूनों के
मुख्य प्रावधानों की सूची दीजिए और उन्हें हटाने/रद करने के कारणो की चर्चा कीजिए)
Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the 2-24
challenges associated with the storage of buffer stock? Discuss. भारत में कृ षि कीमतों के स्थिरीकरण के लिए
सुरक्षित भंडार (बफर स्टॉक) के महत्त्व को स्पष्ट कीजिए। बफर स्टॉक के भंडारण से जुड़ी चुनौतियाँ क्या है? विवेचना कीजिए।
(15m,250w)
What are the reformative steps taken by the government to make food grain distribution system 2019

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 more effective? Ref: Pillar6: Hunger
What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from 2018
the low income trap?
How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is 2017
the significance of crop insurance, minimum support price and food processing for small and
marginal farmers?
“In the villages itself no form of credit organisation will be suitable except the cooperative 2014
society.” – All Indian rural credit survey. Discuss this statement in the background of agriculture
finance in India. What constraints and challenges do financial institutions supplying agricultural
finances? How can technology be used to better reach and serve rural clients?
Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss 2013
various apprehensions in its effective implementation & concerns it has generated in WTO.
What are the different types of agriculture subsidies given to farmers at the national and state 2013
levels? Critically analyze the agriculture subsidy regime with the reference to the distortions
created by it.
Discuss the rationale for continuance of power and irrigation subsidy in the agriculture sector in Opt-
India. (भारत में कृ षि क्षेत्र में शक्ति और सिंचाई सब्सिडी की निरंतरता के लिए तर्क पर चर्चा करें।) Eco

Examine the procurement policy of the Government of India in the post-liberalisation period and Opt-
its impact on agricultural prices. (उदारवाद के बाद की अवधि में भारत सरकार की खरीद नीति और कृ षि कीमतों पर इसके Eco
प्रभाव की जांच करें।)

What are the major components of public expenditure on agriculture in India? Would you Opt-
recommend any changes in the pattern of public expenditure on agriculture to stimulate Eco
agricultural growth? (भारत में कृ षि पर सार्वजनिक व्यय के प्रमुख घटक क्या हैं? क्या आप कृ षि विकास को प्रोत्साहित करने के
लिए कृ षि पर सार्वजनिक व्यय के पैटर्न में किसी भी बदलाव की सिफारिश करेंगे?)

Distinguish between explicit and implicit subsidies. Explain the trends in explicit subsidies on Opt-
irrigation and fertilizer in India during post-economic reform period. (स्पष्ट और निहित सब्सिडी के बीच Eco
अंतर। आर्थिक सुधार की अवधि के दौरान भारत में सिंचाई और उर्वरक पर स्पष्ट सब्सिडी में रुझानों की व्याख्या करें।)

51.3.7 ✍️Mains Questions: Agro → Science angle

How can biotechnology improve the living standards of farmers? (किसानों के जीवन मानकों को उन्नत करने 2019
के लिए जैव प्रौद्योगिकी किस प्रकार सहायता कर सकती है?)
How was India benefited from the contributions of Sir M.Visvesvaraya and Dr. M. S. 2019
Swaminathan in the fields of water engineering and agricultural science respectively?

Next part: Pillar4B: Sectors of Economy → MFG, MSME, Make/Assemble in

India etc.

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 Mrunal’s Mains Pillar4B: sectors of Economy: MFG, Services, Startup-IPR, EoD, MSME-Textile
Table of Contents
40 👨‍🔧Mfg & Services:........................................................................................................................... 379
40.1 Services led Growth- pros and cons (फ़ायदे व नुक़सान)..................................................................379
40.1.1 Service Sector: More negative points......................................................................................................................379
40.1.2 MFG led Growth- pros and cons (विनिर्माण आधारित विकास के फ़ायदे और नुक़सान).....................................................380

40.2 😰China’s growth- more negative points....................................................................................381

40.2.1 😰China: Smart city crisis........................................................................................................................................381
40.2.2 😰China: Stock market crisis by Real estate companies.......................................................................................381
40.2.3 😰China: Rural bank scandal (2022–23)...............................................................................................................381
40.3 🏳️‍🌈LPG: Liberalization, Privatization and Globalization?.........................................................382
40.3.1 Beyond LPG Reforms: what more needs to be done? ( इसके आगे क्या करना चाहिए)................................................382
🌐
40.3.2 Globalization impact on Indian Industries: वैश्वीकरण........................................................................................383

40.4 🤵‍♂️ MNC Entry in India: Positive & Negative.............................................................................384

40.5 🤖Beyond LPG → towards 4th & 5th Industrial Revolution.....................................................386
40.5.1 ⛸ 🗑🔄🏀 Circular Economy (परिक्रामी अर्थव्यवस्था).................................................................................................386
🏭
40.5.2 Circular Economy: Business Models................................................................................................................387

41 👨‍🔧🦁 Mfg & Services → Make in India: Why? (2014)..................................................................388

41.1 👨‍🔧🦁 Make in India: How?......................................................................................................... 389
41.2 👨‍🔧🦁:📟📺🔌 Mfg: Assemble in India (असेंबल इन इं डिया)...........................................................389
👨‍🔧🦁 📟 📺🔌
41.2.1 : : Assemble in In India → Policy recommendations by Eco Survey? ........................................390

41.3 👻🏭📱:🧔📯 PLI: उत्पादन आधारित प्रोत्साहन.................................................................................391

😰
41.3.1 PLI cons / challenges...........................................................................................................................................392

41.4 ⚙️ Mfg Sector Observations by 📙ES23......................................................................................393

41.4.1 ⚙️ Mfg- significance as per 📙ES23 ( विनिर्माण क्षेत्र का महत्व)...................................................................................393
41.4.2 ⚙️ MFG Sectors challenges as per 📙ES23 ( चुनौतियां)...........................................................................................393

42 🌱🤵 Mfg & Services → Startup India (2016)...............................................................................393

42.1.1 ✋🚨 Startup : Negative case studies......................................................................................................................394
42.1.2 💁‍♀️ Startup : Positive case studies.............................................................................................................................395
42.2 🩴Startup Problems as per 📙ES23.............................................................................................395
42.2.1 🩴 Flipping................................................................................................................................................................ 396
42.2.2 🩴 How can India combat “flipping” / ensure “Reverse Flipping”?...................................................................396
42.3 Startups: why less registration in Eastern India?........................................................................396
43 →Mfg & Services → IPR/Pharmacy/Biotech...............................................................................397
43.1 💊 IPR laws, Policy, Scheme, Ranking, Problems.......................................................................397
43.2 💊 India = Pharmacy of the world?............................................................................................ 397
💊
43.2.1.1 Pharma sector: Suggestions / Way forward (आगे का रास्ता).....................................................................398

43.3 🧪🔬 IPR: Jugaad Mentality.......................................................................................................398

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 43.3.1 🧪🔬Gross domestic expenditure on Research & Development (GERD) ........................................................399
43.3.2 🔬 IPR-Progress so far as per 📕ES24....................................................................................................................399
43.4 🤵🧛‍♀️Pro-Business vs Pro-Crony, 📔📔ES20Vol1Ch3................................................................399
43.4.1 🤲: 🛒😰Cronyism: Economist David Ricardo & Rent Seeking.........................................................................400
43.4.2 🤵🧛‍♀️ Pro-business vs Pro-Crony Policies.............................................................................................................400
44 🏄‍♂️Sectors: Ease of Doing Business..................................................................................................401
44.1 🏄‍♂️⚖️ Ease of doing Biz →Judicial Reforms: न्यायिक सुधार...........................................................402
44.1.1 🏄‍♂️⚖️: 🕵️‍♂️ Suggested reforms#1: recruit more judges ( ).............................................................403
न्यायाधीशों की भर्ती
44.1.2 🏄‍♂️⚖️: 🕵️‍♂️ Suggested reforms#2: Create a new Judicial Administrative Service.................................................403
44.1.3 🏄‍♂️⚖️: 🗓🗓 Suggested reforms#3: ↑ courts’ working days ( ).......................................403
अदालत की छु ट्टियाँ कम करो
44.1.4 🏄‍♂️⚖️: 📡📡 Suggested reforms#4: E-governance, ICT-Technology..................................................................403
44.1.5 🏄‍♂️⚖️: 📡📡 ENFORCING CONTRACTS PORTAL (2021-June)......................................................................404
44.1.6 🏄‍♂️⚖️: International Arbitration Centre @GIFT city - in 👜🥻Budget-2022.....................................................404
44.1.7 🏄‍♂️⚖️: ✍️Conclusion on Judicial reforms? ( )...............................................................................................404
निष्कर्ष

44.2 🕵🕵📔📔ES17&21: Over regulation in India, TORA Act........................................................405

44.2.1 🕵🕵 Overregulation: Solution- TORA Act ( )...................................................................................405
आगे का रास्ता
44.2.2 🕵🕵 Overregulation Solution: ‘Minimum Government and Maximum Governance’: .................................406
44.3 🏄‍♂️ EODB 2.0 in 👜🥻Budget-2022 (व्यापार सुगमता का दू सरा चरण)................................................407
44.4 🏄‍♂️👷‍♂️Ease of doing Biz → Labour Reforms : श्रम सुधार................................................................407
44.5 👷🏻‍♂️ PYQ → Labour Codes +ve negative (15m)............................................................................408
44.5.1 👷🏻‍♂️ New labour codes- merits..................................................................................................................................408
44.5.2 👷🏻‍♂️ New labour codes- Demerits.............................................................................................................................409
44.5.3 👷🏻‍♂️ New labour codes- Progress so far....................................................................................................................409
44.6 EoD → building regulations reforms by 📕 ES24...................................................................409
44.6.1 ✍️ Conclusion on building reforms.......................................................................................................................410
45 👷‍♂️💰 Minimum Wages (न्यूनतम वेतन)..............................................................................................410
45.1.1 👷‍♂️💰
Minimum wages – significance / why required?........................................................................................411
😕
45.1.1.1 Gender injustice (लैंगिक न्याय की कमी)..........................................................................................................412
😕
45.1.1.2 New-age workers not covered...................................................................................................................412

45.2 👷‍♂️💰 Minimum Wage Reform: Anoop Satpathy Committee (2019).........................................412

45.3 Minimum Wages (न्यूनतम वेतन): Economic Survey’s suggestions.................................................413
45.3.1.1 Simplification and Rationalisation (सरलीकरण किया जाए, न्यायोचित बनाया जाए)..............................................413
45.3.1.2 Use ICT to enforce Minimum Wage (सूचना प्रौद्योगिकी का प्रयोग)....................................................................413
45.3.1.3 Adopt Best Practices from abroad (अन्य देशों की अच्छी नीतियों से सीखे).............................................................413
✍🏻
45.3.2 Conclusion: Indeed minimum wage enforcement is important ...................................................................414

46 Sectors of Economy → Mfg → 👘Textile......................................................................................414

46.1.1 👘👢Textile & Leather Industry: Past Economic Surveys’ suggestions:............................................................415
46.2 👘 Regional Resource Based MFG (PYQ-GSM1-2019)..............................................................415
46.2.1 👘 Bamboo Regional Resource Based MFG..........................................................................................................416
46.2.2 👘 Coir Regional Resource Based MFG.................................................................................................................416
46.2.3 👘 JUTE Regional Resource Based MFG...............................................................................................................416

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46.3 → Mfg & Services → MSME → Ministry.............................................................................417
46.3.1 MSME: What has been done to help them?...........................................................................................................417
46.3.2 MSME: What should be done in future?................................................................................................................418

46.4 👨🏻‍🏭 MSME policies of Govt (PYQ-GSM3–2023, 150 words)........................................................419

46.4.1 👨🏻‍🏭 Intro: MSME policies of the Government........................................................................................................419
46.4.2 👨🏻‍🏭 Body: MSME policies of Government..............................................................................................................419
46.4.3 👨🏻‍🏭 ✍️ Conclusion: - link with SDG Goals.............................................................................................................419
46.5 📔📔👨🏻↘️👶🏻🏭 ES19: MSME dwarfism shd be discouraged (बौनापन)......................................420
46.5.1 👨🏻↘️👶🏻🏭: 🧔 MSME ‘Dwarfism’ is caused by Govt schemes ( ).............................................................420
बौनापन
46.5.2 👨🏻↗️🤴🏭 MSME ‘Dwarfism’: Suggested Reforms by ES19...............................................................................421
46.5.3 ✍🏻 Conclusion-Template for MSME ( )........................................................................................................421
निष्कर्ष

46.6 📕ES24 on mfg sectors....................................................................................................................421

46.6.1 📕ES24: suggestions to improve industrialisation ( औद्योगिकीकरण को कै से बेहतर करे )............................................422

46.7 📕ES24: MITTLESTAND- copy German Model...........................................................................422

46.7.1 Lessons from German Mittelstand model for India as per 📕ES24....................................................................422
47 👨‍💻💿Service Sector (सेवा क्षेत्र) and SDG..........................................................................................423
47.1.1 🤩 Service sector domination positive on SDG.....................................................................................................423
47.1.2 😥 Service sector domination negative / limitations on SDG..............................................................................423
47.2 Service Sector: digitalization of economy (PYQ-GSM3–2023, 10m)..........................................424
47.2.1 Intro to digitalisation (परिचय)..................................................................................................................................424
47.2.2 Body1: Digitisation- present status (वर्तमान स्थिति).................................................................................................424
47.2.3 Body2:Digitisation- problems and suggestions (समस्या और सुझाव).......................................................................424
✍️
47.2.4 Conclusion: yes, we need to improve digitisation for SDG............................................................................425

47.3 → SERVICE SECTOR → E-Commerce (ई वाणिज्य / ऑनलाइन बिक्री).......................................425

47.4 ONDC- a game changer for both buyers and sellers...................................................................425
47.5 👨🏻‍⚖️ Service Sector: CCI vs MNC (PYQ-GSM2–2023, 150 words)................................................427
47.5.1 👨🏻‍⚖️ Intro to CCI..........................................................................................................................................................427
47.5.2 👨🏻‍⚖️ CCI’s Famous judgements against MNCs........................................................................................................427
47.5.3 👨🏻‍⚖️ ✍️ Conclusion: CCI vs MNC............................................................................................................................428
47.6 Economic Survey 2024 on Service Sector.....................................................................................428
47.6.1 📕ES24: Factors helping service sector demand...................................................................................................428
47.6.2 📕 ES24: FDI in services falls in 2024- bcoz of these reasons..............................................................................428
47.6.3 📕ES24: Global Capability Centres (GCCs)..........................................................................................................428
47.6.4 🤖 Will AI takeaway jobs from Indian IT/BPO? 📕ES24’s view.........................................................................428
47.6.5 👛Budget-2024 on Mfg/Services/IPR.....................................................................................................................428
47.7 📆 Notable years / events.............................................................................................................429
47.8 Mains Questions- Handpicked from Economics Optional.........................................................429
47.9 ✍️🎺 Mains Questions in Previous GSM2 & GSM3...................................................................430
47.9.1 ✍️🎺 Mock Questions for Mains............................................................................................................................430
47.9.2 ✍️🎺 Mock Questions for Mains → Post Independence: PM Rao (2020)........................................................431

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40 👨‍🔧M FG & SERVICES:
40.1 SERVICES LED GROWTH- PROS AND CONS (फ़ायदे व नुक़सान)

😍Services led growth ke Pros 😰Cons

requires less resources than manufacturing sector requires more skilled workers than mfg.
(land, factory, machinery, capital). विनिर्माण क्षेत्र के (विनिर्माण क्षेत्र के मुक़ाबले ज़्यादा कौशल वाले मज़दूर
मुक़ाबले इसे कम ज़मीन, यंत्र और पूंजी चाहिए. चाहिए।)
opportunity for work from home - helpful for more dependent on innovation and
mothers, elderly and physically challenged. technology. (नवाचार और प्रौद्योगिकी पर ज़्यादा निर्भर)
Reduces traffic congestion and pollution.
(घर से भी काम कर सकते हैं अतः माताएँ बुजुर्ग और विकलांग को
आसानी। यातायात और वायु प्रदूषण समस्याओं में कमी)
causes less pollution and environmental can be more vulnerable to global shocks.
degradation, than manufacturing. (Counter: Example 2007–08 supreme crises in USA →
Computer servers / electricity consumption / E- causing huge job loss in Indian IT/BPO
waste causes pollution ultimately) sector & tourism & aviation.
[कम प्रदूषण फै लता है।] US Fed Tapering → massive layoffs in
Indian Startups after flight of investors.
40.1.1 Service Sector: More negative points
 Monopoly by E-Commerce Giants; Google Appstore anti-trust / data privacy (ref Prelims hdt)
 causes higher level of inequality. A maid and Startup CEO both are ‘workers in service sector’
YET A maid would need to work for 22,277 years to earn as much as a top CEO- says Oxfam
report. (आय में असमानता को बढ़ाता है)
 informal jobs, gig-workers: lack of social security/EPFO etc. (compared to factory-MFG workers
who can easily organise themselves into trade union to demand fair wages) (इसके मज़दूरों को कई बार
सामाजिक सुरक्षा कानूनों के अधिकारों से वंचित रखा जाता है।)

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 Majority of service sector jobs are white collar/ High level of education required. = inclusive
growth not always possible for those without degrees. Private colleges degrees require lot of
money→ debt trap / education loan crisis for many student in USA (बिना कॉलेज की डिग्री के नौकरी पाना
असं भव। अमेरिका में एसी कॉलेज डिग्रियों के चक्कर में ही विद्यार्थी कर्ज़ के बोझ से दब चुके हैं।)
 majority of the service sector jobs are located in the urban areas, forcing the villagers to migrate
causing a new set of challenges to urbanisation/slum/water-sanitation problems. (सेवा क्षेत्र की
नौकरियां ज़्यादातर शहरों में उपलब्ध होती है गाँव में नहीं। अत: शहरों में प्रवासी मज़दूरों के आगमन से भीड़ और झुग्गी झोपड़ियों की
तक़लीफ़ बढ़ती है।)
 Service sector jobs in Finance, consultancy, IT-BPO, Media-entertainment- person can carry the
work to home in the laptop. This breaks the work life balance → excessive stress, demotivation,
suicidal thoughts (इस लैपटॉप द्वारा ऑफ़िस के पश्चात दर से भी काम करना पड़ता है, इसलिए व्यक्ति अपने सार्वजनिक और
निजी जीवन में भेद नहीं रख पाता। अनावश्यक रूप से तनाव और आत्महत्या के विचार बढ़ते हैं।)
40.1.2 MFG led Growth- pros and cons (विनिर्माण आधारित विकास के फ़ायदे और नुक़सान)

😍Mfg led growth ke Pros 😰Mfg led growth ke Cons

can be achieved with low-skilled workers than requires more capital investment in
service sector = so it can give more jobs and factory/plant/machinery. अधिक पूंजी की आवश्यकता है
rapid poverty removal.
multiplier effect on jobs/GDP creation (e.g. requires more resources, causes more pollution,
automobile → steel, cement, glass, plastic) environmentally less sustainable
less dependent on innovation and technology More points in next segment- China
compared to service sector esp. IT
✍️ Conclusion: Both manufacturing and service sector jobs have their charms and challenges. A
judicial mix/balance between manufacturing and service sector required to ensure that economic
growth is both sustainable and inclusive. (विनिर्माण और सेवा क्षेत्र दोनों के ही अपने फ़ायदे और नुक़सान है। एक न्यायोचित
अनुपात में दोनों को बढ़ोतरी देनी चाहिए ताकि भारत की आर्थिक वृद्धि सतत और समावेशी रूप से होती रहे।)

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40.2 😰C HINA’S GROWTH- MORE NEGATIVE POINTS

 currency manipulation to boost mfg-exports. As learned in Pillar3

 Use of forced prison labor and Labour exploitation to keep products cheap
 disregard for the environmental conservation while manufacturing.

40.2.1 😰 China: Smart city crisis

Early-2000s: China started GREENFIELD (=fresh) Smart city projects with triple objectives
 decongestion in Beijing / reduce overcrowding in existing cities
 set up new financial hubs like Shanghai and Hong-Kong.
 Boost to construction sector
But even after constructing the new smart cities- people did not move to reside in them. The cities
became ghost cities e.g. in Ordos (Inner Mongolia).
40.2.2 😰
China: Stock market crisis by Real estate companies
 To help the steel cement and construction sector, large amount of capital is required.
 So Chinese government initiated mass campaigns / media-hype to encourage the people to invest
in stock market / IPOs- particularly.
 however, the bubble could not sustain and resulted into stock market collapse (2015).
 2020–23: Evergrande real estate company defaulted on $500 million bonds.
 Real estate related companies account for one third of China’s GDP. So imagine the level of
negative aftershocks created by this crisis.

40.2.3 😰
China: Rural bank scandal (2022–23)
 China’s rural / provincial banks offer higher amount of interest rate on savings accounts to
attract the deposits of rural Chinese Public.
 This money was loaned to builders and real estate companies, but as learned in the previous
segment, real estate sector collapsed, resulting in into NPA-crisis.

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 the People’s bank of China (=Chinese RBI) is unable to bail out these bankers because its own
money is stuck in belt Road initiative related loans / Debt trap diplomacy in Pakistan, Sri Lanka,
Laos and others nations.
 This ultimately resulted into ‘bank run’, protests of the innocent Chinese depositors.

40.3 🏳️‍🌈LPG: L IBERALIZATION, PRIVATIZATION AND GLOBALIZATION?

40.3.1 Beyond LPG Reforms: what more needs to be done? (इसके आगे क्या करना चाहिए)
Origin :1991 balance of payment crisis → LPG reforms → following steps have been taken:
 LPG reforms- Entry of private sector banks, aviation and insurance companies
 FDI reforms- Entry of e-commerce, mobile telecom giants
 Various initiatives towards- Ease of doing business, fourth industrial revolution, startup
ecosystem etc. (व्यापार में सुगमता चतुर्थ औद्योगिक क्रांति)
but miles to go before we sleep:
 Education, Brain Drain.

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 Research Development mein jugaad mentality. Private Sector not doing enough R&D.
 Taxation, FDI reforms, ease of doing business 2.0
 Factory Act, industrial dispute act need amendments
 Labour codes passed but not yet implemented/notified.
 Assemble in India, India needs to be a part of the global supply chain,
 Various points from the economic survey. + more to come in 4D (GDP)

Conclusion: After the LPG reforms, Indian economy was able to grow at annually 4-8%, (except
Corona). At present we are third largest economy in the world in ($PPP). - But from here onwards,
to achieve $5 trillion GDP target, aforementioned reforms are necessary.

40.3.2 🌐Globalization impact on Indian Industries: वैश्वीकरण

Globalization is a process in which nations allow free flow of goods, services, labour, capital
investment, technology, ideas and innovations. वस्तु, सेवाओं, श्रम, पूंजी निवेश, प्रौद्योगिकी, और विचारों नवाचारों के
मुक्त प्रवाह की प्रक्रिया को वैश्वीकरण कहते हैं
 😊Indian companies are giving tough fight to MNCs namely:
o IT-BPO sector- Infosys & TCS
o Tata purchased Jaguar Land Rover from Ford Company
o Reliance refinery -Among the largest in the world.
o Giant foreign companies like Aramco & Walmart Investing billions of dollars in Indian
companies as FDI- It proves our companies have potential.
However, there are areas, where Indian companies yet to give real challenge to global MNCS
 😥FMCG- Fast Moving Consumer Goods e.g. bread butter toothpaste shampoo→ Indian brands
like Patanjali Dabur Tata Nirma giving tough fight to foreign brands- but only within India.
These Indian brands yet to earn the name at a global stage and yet to become as easily
recognisable globally like Johnson and Johnson babypowder, Nestle Maggie, or P&G’s Tide
detergent powder. (साबुन दूध आदि तेज गतिसे चलने वाले उत्पादों में भारत के भीतर तो देसी कं पनियां स्पर्धा दे पाती है किं तु
विदेशी मंच पर अभी तक नाम कमाना बाक़ी है।)
 😥Unicorn startups from India e.g. Byjus, Zomato, Unacademy, PayTM. However their number
and scale of operation is nowhere near to Microsoft, Google, Apple, Dell, Samsung, LG and
Facebook. India does not have a tech-company of that size and global scale. (गूगल, माइक्रोसॉफ्ट के
भारतीय कं पनी अभी तक बनना बाक़ी है)
 Start-up companies’ financial troubles and layoffs after the US Fed Tapering. (अमरीकी फे ड-टेपरिंग के
बाद भारतीय स्टार्ट अप कं पनियों को पूंजी नहीं मिल रही, और वे युद्ध स्तर पर लोगों को नौकरी से हटा रही है।)
 😥India's Exports & product appeal is mostly confined to Asian subcontinent and African
nations. - Whereas Apple phones, Dell laptops, Ferrari cars have universal appeal. (भारत की गाड़ियां
कपड़े सामान ज्यादातर एशिया और अफ्रीका में बिकते हैं, लेकिन पूरी विश्व में सार्वजनिक रूप से प्रसिद्ध नहीं जैसे एप्पल डेल फ़रारी)

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 😥Only two Indian Bank (SBI) and HDFC in the top 100 banks of the world- India should have
at least 6. (Recall 1B1: need for merger and consolidation of the public sector banks)
 Pharmaceutical- while India is a notable mfg hub, made the cheapest vaccines for corona. but
overall pharma development / groundbreaking patented medicines or revenue generation =
nowhere near Pfizer, Johnson and Johnson, Bayers, Novartis, Sanofi. (कोरोना कि टीकाकरण में तो भारत में
सफलता हासिल की, किं तु कैं सर मधुप्रमेह आदि बड़ी बीमारियों के ख़िलाफ़ जीतने आविष्कार फिरंगी कं पनियों ने किए हैं हम उनके
मुक़ाबले कु छ भी नहीं है।)
 India does not have any private sector space technology company like Space-X (Elon Musk),
Blue Origin (Jeff Bezos), Virgin Galactic (Richard Branson). (निजी क्षेत्र की अवकाश उड्डयन कं पनियां।)
 India does not have any private sector weapons / aviation companies like Lockheed-Martin or
Boeing. (निजी क्षेत्र की हथियार और विमान बनाने वाली कं पनी।)

40.4 🤵‍♂️ MNC E NTRY IN INDIA: POSITIVE & NEGATIVE

impact on +VE effect of MNC Entry ✋🚨-VE effect of MNC Entry
Government Tax collection, FDI, employment Tax avoidance cases by Vodafone, Cairn
improved (कर आमदनी, निवेश, रोज़गार) Energy. (कर चोरी/ कर परिहार)
Economic More jobs, more income, more Russia Ukraine crisis and USA Fed-
growth demand, more exports = helps GDP. Tapering caused more damage to Indian
economy in 2022 compared to the
आर्थिक वृद्धि में ज़्यादा रोज़गार आमदनी उपभोग और निर्यात के damage it could have done in 1980s
क्या नफ़ा अवसर। because now we are more integrated to
नुक़सान global supply and global economy due to
entry of MNCs.
Workers - services sector employment ⬆️ - MNC are solely motivated by private
from 20% in 1991 to >30% in profits. → lot of emphasis on cost-
मजदूरो को क्या
2010.esp. in IT and cutting → pressure to replace men
नफ़ा नुक़सान
communication sectors, banking, with machines and
insurance, and airlines, accounting, robots→unemployment ⬆️
media-entertainment, marketing, - Trade unions have become weaker
Biotechnology; medical research in negotiating better pay and
centres; security for workers as only efficient
- MNCs generate employment for labour is absorbed by the profit
the skilled workforce especially in driven enterprises. To save workers
urban areas. It motivates labour to from losing jobs, they were
pick up various skills through compelled to accept cuts in salaries,
training. freezing of dearness allowance etc
- scope for women in labour- - increase in gig-worker, contractual
intensive industries such as and casual employment due to

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 impact on +VE effect of MNC Entry ✋🚨-VE effect of MNC Entry
garments, electronics etc. The MNC/globalization. → layoffs,
direct workforce mobile phones denial of EPFO/ESIC/ social security
mfg has more than tripled between for the workers.
FY17 to FY22, particularly
benefiting female blue-collar
workers- said 📕ES24.
- Workers become more efficient
and skilled due to increased
competition and inflow of foreign
knowledge / best managerial
practices.
Rival Indian  Competition brings excellence. - Indian private company is not
Companies Puts pressure on domestic invested enough in R&D / have
companies to raise productivity, jugaad-mentality- said ES. So,
improve product quality etc. e.g. difficult to compete in every sector.
Affordable Jiophone, Nano car, etc. - MNC advertisements →
 inflow of foreign capital and uncontrolled growth of
technology in electrical consumerism preference for
equipment, services and branded high-end products
telecommunication→ some of compared to cheap Swadeshi
them resulted into joint ventures products→ MSME can’t compete.
with Indian companies → quality - MNC enrty has exposed domestic
of Indian products increased → firms to risks such as fluctuations in
our exports increased. prices, instability of profits and
 Unable to compete against MNC uncertainties of demand and supply-
due to issues in research depending on the
development, brain drain, pricing/marketing/biz-decisions of
loan/IPO/capital availability. MNCs
 To attract the foreign industries in
India, GoI started de-licensing,
ease of doing Biz, PLI subsidies →
this helped local players as well.
Consumers - Fast food chains, shopping malls - Excess marketing / showcasing of
cropping up at every nook and luxury lifestyle by MNC with the
उपभोक्ता ग्राहकों corner of the cities and towns. help of celebrities influenzers.
पर असर
- Easier availability of the luxurious - Increased consumerism, EMI

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 impact on +VE effect of MNC Entry ✋🚨-VE effect of MNC Entry
fashion / car / phones/ laptops etc. culture, Piling of credit card debt.
- Competition between Indian and - Environmental exploitation, E-waste
foreign companies = improved the generation et cetera ultimately
customer service / price. harming the help of the customer.
✍️ Conclusion:
 Overall, the impact of MNCs in India is mixed. There have been both benefits and drawbacks.
On the positive side, MNCs have created jobs, increased tax revenue, and helped to improve the
quality of Indian products. (कु छ फ़ायदे भी हुए हैं जैसे रोज़गार निर्माण, कर-आमदनी और अच्छी गुणवत्ता के उत्पाद।)
 However, they have also been criticized for their impact on the environment, their treatment of
workers, and their impact on local businesses. (पर्यावरण को नुक़सान, मज़दूरों का शोषण, छोटे देशी उद्योगों के लिए
स्पर्धा में टिकना मुश्किल।)
 That is not to say we should become a closed economy and ban the entry of MNCs. We should
welcome them in open arms – for GDP and job creation, but at the same time ensure proper
regulation for taxation, environment, workers’ welfare and fair trade practises. (इसका यह भी मतलब
नहीं कि विदेशी बहुराष्ट्रीय कं पनियों को भारत में आने से पाबं दी लगानी चाहिए। उनका भारत में स्वागत/आगमन ज़रूरी तभी भारत का
उत्पादन और रोज़गार सृजन हो पाएगा। किं तु, साथ ही साथ हमें यह भी सुनिश्चित करना चाहिए कि कर आमदनी पर्यावरण मज़दूरों का
कल्याण और देशी उधोगों के लिए एक साफ़ स्पर्धा हो पाए।)

40.5 🤖B EYOND LPG → TOWARDS 4TH & 5TH INDUSTRIAL REVOLUTION

40.5.1 ⛸
REFER TO Prelims Handout pillar4B.
🗑🔄🏀 Circular Economy (परिक्रामी अर्थव्यवस्था)
 (Definition) A circular economy is an alternative to a traditional linear economy (make, use,
dispose). In circular economy, resources are kept in use for as long as possible, the maximum
value is extracted from them, and ultimately waste is recovered and regenerated in the end.
पारंपरिक-रैखिक-अर्थव्यवस्था से विपरीत यहा परिक्रामी-अर्थव्यवस्था मे सं साधनो के पुनर्नवीनीकरण पे ज्यादा ध्यान दिया जाता है।
 (Origin) 2019: NITI Aayog proposed ‘Circular Economy and resources efficiency in India’.
 (DATA) Circular Economy in EU is expected to create savings of €600 billion for EU businesses,
creation of additional 580,000 jobs and reduction of carbon emissions by 450 million tonnes by
2030. In India it can generate 1.4 crore jobs in next 5-7 years. रोजगार सृजन में मदद

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40.5.2 🏭 Circular Economy: Business Models

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✍ 🏻 Conclusion: Circular Economy aims at minimising waste and making the most out of the
available resources. SDG Goal#12 requires nations to ensure sustainable consumption and
production patterns. Therefore, we must focus on Circular Economy on war-footing. Taking note of
this, 👜🥻Budget-2022 announced to focus on electronic waste, end-of-life vehicles, hazardous
industrial waste for promoting circular economy. (सं साधनों के अपव्यय में कमी, सतत विकास लक्ष्य की प्राप्ति, अग्रता
क्रम से इस पर काम करना होगा. इसी को ध्यान में रखते हुए नए बजट में भी परिक्रामी अर्थतंत्र पर ज़ोर दिया गया है).

41 👨‍🔧🦁 M FG & SERVICES → MAKE IN INDIA: WHY? (2014)

Previous economic surveys observed that nations improve their GDP using three ways

➢ In the advanced economies, not more than 25% of the population engaged in agri: USA 4%, UK
5%, France 14%, Australia 16%. (विकसित देशों के ज्यादातर श्रमिक कृ षि नहीं किं तु औद्योगिक क्षेत्रों में काम करते हैं)
➢ Whereas in India >40%, because the non-agricultural sector has not been adequately developed
to absorb the labourers from the growing population. (बढ़ती आबादी को रोजगार देने के लिए)

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➢ Demographic dividend= economic growth potential when share of the working-age population
becomes larger than the non-working-age population. India 65% population is below the age of
35 age. (जनसं ख्या की लाभांश: जब बच्चों और बुजुर्गों का अनुपात नौजवानों की आबादी के सामने/ अनुपात में कम हो)
➢ Industries use raw materials from agriculture and agriculture sector needs industrial equipment
and machinery such as pump set, tractor, electricity etc. So both are complementary to each
other. Industrial activities provide higher wages / remuneration than agricultural labour.
(औद्योगिक क्षेत्र में कृ षि क्षेत्र से ज़्यादा वेतन)
➢ So, industrialization is the only answer to reap India’s demographic dividend. Further, to double
farmers’ income, some of the small-marginal farmers should opt for industrial / service sector
jobs so that land consolidation & mechanization can help doubling the incomes for rest of the
farmers. (भू-एकीकरण और मशीनीकरण द्वारा किसानों की आय को दोगुना करना)
Keeping these angles in mind, 2014: PM Modi launched ‘Make in India (मेक इन इंडिया)’
41.1 👨‍🔧🦁 M AKE IN INDIA: HOW?
Nodal? Commerce ministry. (वाणिज्य मंत्रालय)
Objective? Promote India as global hub for manufacturing goods & services, design and innovation
in 25 sectors. Later it was expanded to total 27 sectors. Basically it focuses:
 FDI norms relaxed for facilitating investment (निवेश की सुविधा)
 fostering innovation, research development (R&D) (नवाचार को बढ़ावा देना)
 building infrastructure (बुनियादी अवसं रचना)
 making it easy to do business by relaxing the factory-labour-tax laws & administrative
procedures (व्यापार करने में आसानी प्रदान करना)
 enhancing skill development (कौशल विकास को बढ़ाना)
Note: for the list of sectors /schemes Refer to Prelims Handout.
⚠️😰 Challenge? Most of the jobs in 27 sectors are skill intensive while India is burdened with vast
pool of unskilled labour. So, govt has to pay more attention to education, skill development schemes
incl. Skill India (2015) → 📑more in Pillar#6. (मजदूरों के कौशल विकास पर ध्यान देना होगा)
41.2 👨‍🔧🦁:📟 📺🔌 M FG: ASSEMBLE IN INDIA (असेंबल इन इंडिया)

- (Definition) Network Products: Their production occurs across Global Value Chains (GVCs)
operated by Multinational Companies (MNCs) such as Apple, Samsung, Sony, Nike, Adidas etc.
(बहुराष्ट्रीय निगमों द्वारा वैश्विक मूल्य श्रृंखला के द्वारा “नेटवर्क उत्पादों” को बनाया जाता)

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 Product is designed by their Headquarter (HQ) located in a rich country @US/EU/Japan. But
Product assembly/manufacturing in done low wage countries.

📔📔ES20 suggested we move from ‘Make in India’ towards Assemble in India

👗 🧸 👢 Make in India 👟 📟 📺 🔋 🔌 Assemble in India
What? textiles, clothing, footwear, toys (कपड़े वस्त्र Products of Apple, Samsung, Sony, Nike,
जूते खिलौने) Adidas etc.
How? Traditional Unskilled Labour Semi-skilled labour
पारंपरिक अकु शल श्रमिक। अनपढ़ से भी काम चल जाए आंशिक रूप से कु शल श्रमिकों के द्वारा
41.2.1 👨‍🔧🦁:📟 📺🔌: Assemble in In India → Policy recommendations by Eco Survey?
 Previously, China was seen as a low-cost location for final assembly of industrial products. But
ageing population = labour shortages + increases in wages. (चीन मे श्रमिकों की कमी और वेतन में बढ़ोतरी)
 US/EU Protectionism =higher duties on China-made products → companies are shifting
production away from China. (सं रक्षणवाद से बचने के लिए विदेशी कं पनियां चीन के बाहर फ़ै क्ट्री लगाना सोच रही है)
 So, India should attract these MNCs by reforming its taxation, FDI and labour laws (कराधान, विदेशी
प्रत्यक्ष निवेश, श्रम कानूनमैं सुधार करना).
 Skill training of Indian youth as workers and middle-level supervisors. (कौशल प्रशिक्षण)
 Improve infrastructure for transportation, broadband communication etc. (परिवहन व सं चार की
बुनियादी सुविधाओं को बेहतर करना)
 Shipping Delays, Electricity Failure, Political Disturbances, Labour Disputes etc could disrupt the
entire production chain & thereby discourage the MNCs. So, Govt should try to monitor them
closely. (नौवहन में देरी, बिजली की कटौती, राजनीतिक अस्थिरता, मजदूरों के विवाद से पुरी उत्पादन-शृं खला बाधित हो जाती है.
इन पर सरकार की निगरानी जरूरी)
 2018: top 3 mobile handset manufacturers 1) China 2) India 3) Vietnam. With the right policies,
we can even overtake China! (कोशिश करे, हम चीन से भी आगे निकल सकते है)

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 Challenge? Labour unrest in Apple iPhone factory in Karnataka. Workers burned vehicle, looted
phones over non-payment of salaries. So, on one hand, India wants to attract foreign companies
but at the same time we can’t allow them to exploit workers nor we can allow violence by
workers. Need to balance all these. (श्रम विवाद, मजदूरों का शोषण, तनख्वाह का समय पर भुगतान नहीं- इसलिए एप्पल
के कर्नाटक फै क्ट्री में मजदूरों द्वारा आगजनी और लूट. सरकार के लिए विदेशी कं पनियों को आकर्षित करना, साथ ही साथ स्थानीय
मजदूरों के अधिकारों की रक्षा करना, साथ ही साथ मजदूर सं घ की हड़लात/हिंसा को रोकना - इन सब का सं तुलन आवश्यक)

41.3 👻🏭📱:🧔📯 PLI: उत्पादन आधारित प्रोत्साहन

 Production Linked Incentive Scheme scheme aims to ↑ mfg of automobiles, pharma, mobiles,
textile etc. sectors
 By giving them conditional 4-6% subsidy on incremental sales of goods manufactured in India,
against their production in base year (वर्ष 2019 के अनुपात में, भारत में निर्मित कं पनी के उत्पादनो, की सालाना बिक्री,
कितनी बढ़ी, उस हिसाब से सशर्त सब्सिडी/लाभ दी जाएगी।)
 Note: Drone industry is exception- they’ll be given 20% subsidy on sale of drones.
Sr Mfg Approving Org
1,2 - 1) Automobiles (But scheme not Dept of Heavy Industries (under Ministry of
given for petrol/diesel/CNG type Heavy Industries)
Internal Combustion Engine (ICE)
vehicles. Focus is on e-vehicles)
- 2) Auto components (e.g. tire,
engine etc)
3 Drones and Drone components Ministry of Civil Aviation
4 Advanced Chemistry Cell (ACC) NITI Aayog and Department of Heavy
Battery- used in consumer electronics, Industries
electric vehicles, and renewable energy.
5,6, 5) Active Pharmaceutical ingredients Department of Pharmaceuticals under Ministry
7 (API) / raw material pharma of Chemical
6) Pharmaceutical Drugs
7)Medical devices (e.g.Xray, Stent)
8 Telecom & Networking (दूरसं चार के उपकरण) Department of Telecom (under
e.g. Mobile handsets Communication ministry)
9 Food Products- Veg, Non Veg, dairy- Ministry of Food Processing
ghee/cheese etc are included (खाद्य पदार्थ)
10 Textile Products: Man Made Fibre Ministry of Textiles
(MMF) and technical textiles e.g.
shoelaces, parachutes etc
11 Specialty Steel (खास किस्म के स्टील उत्पाद) Ministry of Steel
12 White Goods - domestic / home Department for Promotion of Industry and
appliances but only two mentioned for Internal Trade (DPIIT) under Commerce

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 Sr Mfg Approving Org
now- ACs & LED Ministry
13 Electronic/Technology Products Ministry of Electronics and Information
Technology
14 Solar Photovoltaic Modules Ministry of New and Renewable Energy
• Total: more than ₹1 lakh crores worth of subsidy will be provided. Presently 13 sectors. Later
more sectors may be added / Government may increase scheme funds….so above table’s
numbers may change.
• furthermore, in 2023, PLI 2.0 launched for IT hardware mfg, with 5% incentive.
41.3.1 😰 PLI cons / challenges
• Companies want government to extend the scheme-expiry date, bcoz due to Corona, they
could not actually benefit from the scheme for two years due to low-production/sales. (योजना
की अवधि को बढ़ाया जाए)
• Economist Dr. Raghuram Rajan had raised doubts that PLI scheme for smartphones gives
out more subsidies to companies than the amount of benefit to Indian economy / job
creation. (इन कं पनियों को जितनी सब्सिडी दी जा रही है उसके अनुपात में यह कम्पनियां जीडीपी में बढ़ोतरी या नौकरियां
खड़ी/ रोज़गार सृजन नहीं कर रही।)
• Rajan suggested that the subsidies could be better utilised in improving schools and colleges
so that many more Indians can design chips, and as importantly, have decent livelihoods as
plumbers or mechanics or as workers in garment or shoe factories. Because we are decades
behind in the R&D/Mfg of chips, we cannot overcome Taiwan or USA. No matter how much
subsidy we give on the chip sector. (चिप-विनिर्माण क्षेत्र में हम अन्य देशों के मुक़ाबले दशकों पीछे हैं। अभी चाहे
कितनी ही सब्सिडी दे दो, कु छ हो नहीं सकता। इसलिए बेहतर है कि सरकार अपना पैसा स्कू ल कॉलेजों में ख़र्च करे।)
• However, Minister S. Jaishankar criticised Rajan’s view as "we are incapable of it (chip-mfg)
so we shouldn’t be doing it- such pessimism will take us nowhere. However hard it is, we
have to get into the manufacturing game more seriously.” (राजन की ये नकारात्मक सोच की क्योंकि हम से
कु छ न हो पाएगा इसलिए हमने कु छ करना नहीं चाहिए- तो फिर देश कभी आगे बढ़ नहीं सकता। भले कठिनाइयां आयें लेकिन
हमें विनिर्माण क्षेत्र में उतरना हीं होगा।)
• Govt allegedly pressurizing the foreign companies to join the PLI scheme by requiring the
license for import of laptops. Later on govt had to undo this notification due to heavy
criticism. (आयातित लैपटॉप के लिए लाइसेंस लेना पड़ेगा ऐसे फ़रमान जारी करके सरकार विदेशी कं पनियों पे दबाव डाल रही
है, ताकि वे कम्पनीय PLI योजना में जुड़े। इस प्रकार की दमनकारी नीतियों से कं पनियों में नाराज़गी है।)
✍️Conclusion Template: Electronics / IT Technology permeates all sectors of economy. It plays
vital role in raising productivity, efficiency, social transformation, employment generation, economic
growth, and strategic security of nation. R&D, IPR and Training are the critical components for the
success of an Electronics / IT Technology company. Aforementioned policy, initiative, schemes will
play a significant role in this regard. (सूचना और प्रौद्योगिकी क्षेत्र की भारत की उत्पादकता, दक्षता, सामाजिक परिवर्तन,
रोजगार सृजन, आर्थिक वृद्धि, और राष्ट्र की सामरिक सुरक्षा में महत्वपूर्ण भूमिका। उक्त नीति /योजनाओं से मदद मिलेगी)

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41.4 ⚙️️M FG SECTOR OBSERVATIONS BY 📙ES23
Sector Rank/Number of India
Mobile second-largest mobile phone manufacturer
largest producer of generic medicines
Pharma
3rd largest producer (Volume wise)
📙
41.4.1 ⚙️Mfg- significance as per ES23 (विनिर्माण क्षेत्र का महत्व)
 Domestic MFG reduces the reliance on imports → reduces current account deficit. ( आयात पर
निर्भरता कम रहती है. चालू खाता घाटा कम होता है।)
 Gives direct jobs to over 12 crore people. (करोड़ों लोगों को रोज़गार)
 Textiles and construction are two major job creating sectors.
 industrial growth catalyses growth in services sectors such as banking, insurance,
courier/transport/logistics, etc. (परोक्ष रूप से सेवा क्षेत्रों में भी रोज़गार निर्माण)
 Thus, MFG has Multiplier effect on job creation. (यानी की रोज़गार निर्माण पर गुणक प्रभाव)
📙
41.4.2 ⚙️MFG Sectors challenges as per ES23 (चुनौतियां)
 Corona-2020: supply chain disruptions, shortage of microprocessors, semiconductors. (आपूर्ति
श्रंखला- माइक्रोप्रोसेसर चिप, सेमिकं डक्टर की किल्ल्त )
 Geo-political challenges e.g. China-Taiwan, Russian-Ukraine → inflation in imported
commodities e.g. edible oil, crude oil, fertilisers. (भू राजनीतिक तनाव के चलते आयातित कच्चे माल की कीमतों में
बढ़ोतरी)
 shortage of skilled workers, easy loans, easy transport. (कु शल मजदूर, आसान लोन, आसान परिवहन की कमी)
 private company is not doing enough research innovation.(सं शोधन और अन्वेषण में निजी कं पनियां ज्यादा पैसा
खर्च नहीं करती)
 Construction sector slow down by high Rainfall in 2022. (भारी बारिश के चलते मकान निर्माण में तक़लीफ़)
 RBI hiking repo/loan interest rate to fight inflation: → home / auto sales affected. ( महँगाई से लड़ने के
लिए रिज़र्व बैंक ने लोन महंगे किए तो घर/वाहन की माँग में कमी)
 Due to lack of demand → Companies selling older stock, but not doing much FRESH
production. (माँग में कमी के चलते कं पनियां पुराना माल बेच रही है लेकिन नया उत्पादन ज़्यादा नहीं हो रहा।)
 Threat of new Covid Variant. (नए कोविड वैरिएं ट का खतरा)

42 🌱🤵 M FG & SERVICES → STARTUP INDIA (2016)

Definition New definition after 2019-Feb

Startup company is a company not older than _ _ _ 10 years
Doesn’t have annual turnover more than _ _ _ ₹100 cr
Must be working towards innovation & development of goods /
Yes
services
(DATA) startups in India increased from ~300 (2016) to 1.25 Lakh+ (2024)

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- “Valuation game”: Startup try to ↑ subscribers with cashback /discounts → show the data to
investors about company’s projected sales/growth/valuation to get more funding → eventually
convert the private limited company into public limited company & launch IPO to get even more
capital → people subscribe in IPO hoping large amount of dividend while the promoter leaves
with money & company sees fall in revenue once the cashbacks and discounts are stopped.
- Past Economic Surveys: Most of the startups are focused on e-commerce aggregation i.e.
Connecting the buyers with sellers (Uber, Zomato, Flipkart, Pepperfry etc.) due to ‘valuation
game’, whereas India needs more startups in Agriculture, Manufacturing, Healthcare and
Education. (कृ षि, विनिर्माण, स्वास्थ्य सेवा और शिक्षा।)
- 2019: Dr.Raghuram Rajan noted: There is no ‘free lunch’ in economy so when ‘superstar’
companies are giving free products / cashback to consumer - who is paying for it? is it company
itself or the government (through tax-holidays & subsidies given to that company!)
- While Start-up entrepreneurs must be encouraged but at the same time, (fake) Angel investors’
tax evasion and avoidance has to be discouraged. (ref: Pillar#2: Black Money handout).

42.1.1 ✋🚨 Startup : Negative case studies

Paytm - Paytm IPO mega flop: public bought shares at ₹2150 → presently fallen to ₹644
नुकसान में डूबा. (2023-Dec). This >70% loss from original IPO-price.
रिजर्व बैंक के
- Billionaire Warren Buffet's Berkshire Hathaway Inc had invested money in
नियम नहीं माने
Paytm. He sold his ownership at loss of 31% per share.
- Reason for failure:

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 - Paytm no longer has any exclusive/unique technology against its rivals
companies- after the invention of UPI (by NPCi).
- Its cashback game/trick to acquire new subscribers has also plateued.
- Its payment bank can't give loans so very little scope for profit.
- 2024-Feb: RBI ordered Paytm Payments Bank to suspended most of its
deposit & Credit card business after violation of KYC (Know Your
Customer) & anti-money laundering norms.
Whitehat Jr. ➢ Remained negative news because of fake advertisements claiming that 13
झूठे विज्ञापन year old schoolboy 'Wolf Gupta' got job at Google for crores of rupees!
➢ When a consumer rights activist Pradeep Poonia exposed this, company
armtwisted him by getting his social media accounts deleted.
➢ 2023: news reports speculating this company will be shut down.
Byjus ➢ Byju's has been grappling with the repayment of the $1.2 billion loan, as its
कर्ज में डूबा online coaching business fallen after unlock down.
➢ Byju's founder had to pledge his two bunglows to borrow money to pay
salaries to staff (2023-Dec)
WeWork ➢ Startup for renting office buildings. Once it was valued as $47 billion, but
(USA) during corona lockdown, people begin to work from home so the demand
दिवालीयापन for office space declined so valuation came down to $10 billion.
➢ Ultimately filed for bankruptcy due to unable to repay the loans.
42.1.2 💁‍♀️ Startup : Positive case studies
Paypal - Digital payment company. Elon Musk was one of the founders.
- Musk sold it at profit and used the money for expansion of his other famous
companies such as Tesla, SpaceX.

Google - These were Start-up companies in the beginning. (Counter examples are
Facebook Yahoo.com and myspace.com which failed)

Nykaa - Fashion beauty related e-commerce company. Its successful IPO made its
founder Falguni Nayar the 2nd self-made female Indian billionaire. [1st is
Pharma company Biocon's Kiran Mazumdar-Shaw.]

Flipkart - This Indian e-commerce bought by USA’s Walmart for $16 billion (2018).

42.2 🩴S TARTUP PROBLEMS AS PER 📙ES23

 1) funding crisis after US Fed Tapering. 2) fall in demand/sales.
 3) problems in Tax / Regulatory structure → flipping by the founders. <see next section>

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42.2.1 🩴 Flipping
 Flipping process of transferring the entire ownership, IPR and DATA of an Indian company to
an overseas entity. (भारतीय कं पनी की मालीकी/स्वामित्व, बौद्धिक सं पदा और डेटा किसी विदेशी इकाई को स्थानांतरित कर
देना।)
 This is done mainly for going to nations with lower tax/legal norms (e.g. UAE/Singapore), Easier
to get funding (e.g. USA) etc. (क्योकि उन विदेशी सरकारों द्वारा टैक्स में माफ़ी, क़ानून में छू ट और वहाँ के शेयर बाज़ार से
पूँजी उठाना आसान होता है।)
 Flipping effectively transforms an Indian company into a 100 per cent subsidiary of a foreign
entity. While the founders and investors continue to remain its owns (indirectly) thru the foreign
company. (भारत की कं पनी अंततः एक विदेशी इकाई की अधीन/सहायक कं पनी बन जाती है।)

42.2.2 🩴 How can India combat “flipping” / ensure “Reverse Flipping”?

1. Fix the loopholes in DTAA (Double Taxation Avoidance Agreement) (Ref: Pillar#2B:Black
Money) दोहरे कराधान परिहार समझौतो में सुधार
2. Simplify / reduces taxes in India and other Ease of Doing Business measures. (करो को कम किया जाए
और व्यापार में सुगमता बढ़ाई जाए)
3. Make it easier for Indian companies to raise capital nationally and internationally e.g. more
capital account convertibility (Ref: Pillar#3B) (विदेशी बाजार से पूंजी लाना आसान किया जाए)
4. Funding for R&D etc. (सं शोधन नवाचार के लिए पैसा दिया जाए)
✍️Conclusion Template: Startups have always been the engine of progress. The mega corporations
of today were startups of yesterday. Startups can be effective instruments for reaping India’s
demographic dividend, catalyze employment generation and augment its economic growth. The
aforementioned policies/ schemes/challenges are significant in this regard// need to be addressed on
war footing. . (भारत के जनसांख्यिकीय लाभांश की प्राप्ति, रोजगार सृजन, आर्थिक वृद्धि के लिए स्टार्टअप को मदद करना बेहद
जरूरी- उक्त चीज को अग्रता-क्रम/युद्ध स्तर पे सं बोधित करना ज़रूरी।)

42.3 STARTUPS: WHY LESS REGISTRATION IN EASTERN INDIA?

 10% ⬆ in registration of new firms in a district = 1.8% ⬆ in that district’s Gross Domestic
District Product (GDDP: सकल घरेलू जिला उत्पाद मैं वृद्धि होती है जब उस ज़िले में नई कं पनियां लगायी जाती है )

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 Thus, entrepreneurship at district – has a significant impact on wealth creation at the grassroot
level. (उद्यमिता से जमीनी स्तर पर धन सृजन में मदद मिलती है)
😰😰But in Eastern India, growth of new firms is very slow because: →
 📚👨‍🎓 Eastern India: lowest literacy rate (साक्षरता दर: 59.6%, census of 2011). This region has the
lowest registration of news firms. In the past, the privatization of engineering colleges helped ↑
India’s software exports. So, govts could also explore the privatization of education further (allow
more private colleges: शिक्षा का निजीकरण ज़रूरी है)
 👷💪⚖️️W.Bengal, Assam, Jharkhand, Kerala and Bihar have inflexible labour laws so
entrepreneurial activity is lowest. (जिन राज्यों में श्रम कानून लचीले नहीं होते वहां उद्यमिता कम होती है)
 ⚡️☎️Physical infrastructure such as road, electricity, water/ sanitation facilities, and telecom
services. (पक्की सड़क, बिजली, पानी स्वच्छता, दूरसं चार सेवा वगेराह भौतिक अवसं रचना की कमी है पूर्वीय भारत में)
✍️Conclusion template: Innovations / Startup can turn Indian youths from job seekers into job
creators. They encourage entrepreneurship, innovation and creation of revolutionary new products
that can be used by people around the world. Hence startups are important / protecting their IPR is
important. Aforementioned initiatives / schemes / challenges are important in that regard / need to
be addressed on war footing. ये सब जरूरी ताकि भारत के नौजवानों को नौकरी- याचक से नौकरी-दाता बनाना सके , क्रांतिकारी
नए उत्पादन करे, जिससे दुनिया के लोगों की सुविधा बढ़ सके .

43 🔬M FG & SERVICES → IPR/PHARMACY/BIOTECH

43.1 💊 IPR , P LAWS OLICY, SCHEME, RANKING, PROBLEMS
Refer to Prelims Handout.
43.2 💊 I NDIA=P HARMACY OF THE WORLD?

Indian pharmaceutical sector is a major player in the global market, and it is known for its low-cost
generic drugs and skilled manpower. However, to become “Pharmacy of the world”, India needs to
overcome following challenges:
 between 2010 to 2019: India's Pharmaceutical exports have doubled (2x)
 Top 3 Pharma exporters: Germany, Switzerland and USA. India is 11th Rank.

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 🤩🤩India's Strength (ताकत) 😰😰Weakness (कमजोरी)
 Availability raw material  Indian pharmaceutical industry excessively dependent on
from well-developed China for sourcing Active Pharmaceutical Ingredients
petrochemical industry. (APIs). API is a chemical compound that is the most
पेट्रो रसायन उद्योग से कच्चा माल important raw material to produce a finished medicine.e.g.
मिल जाता है Paracetamol is the API for Crocin tablets. (सक्रिय दवा सामग्री के
 skilled workforce (कु शल लिए भारत चीन पर निर्भर.)
मानव बल)  Private Sector expenditure R&D is very low. (सं शोधन एवं विकास
पर निजी कं पनियों द्वारा बहुत कम खर्च)
 Corona pandemic exposed Indian Pharma sectors weakness
in meeting the domestic demand. (अपनी भारतीय दवाई कं पनियां
कोरोना मैं भारत की आबादी को भी दवाइयों की आपूर्ति करने में असमर्थ है)
 death of 70 children in Gambia from spurious cough syrup
made in India. → Negative brand perception for Indian
drugs among foreign consumers.

43.2.1.1 💊
Pharma sector: Suggestions / Way forward (आगे का रास्ता)
 Focus research on gene therapy, Novel chemical entity (=Drug molecule that is never discovered
previously by others) (जीन चिकित्सा, नवीन रसायन इकाई पर सं शोधन)
 Focus on improving exports to Japan, China, Africa, Indonesia, Russia/CIS countries, Brazil and
Latin America. (इन देशों में औषधि निर्यात पर जोर दिया जाए)
 Optimal utilisation of Production Linked Incentive (PLI) Scheme.
 Need for fostering joint research amongst Indian pharma companies. For R&D, Indian Indian
pharma companies should collaborate rather than becoming competitive/rivals of each other.
 bolstering industry-academic interactions for applied research,
 reducing communication gap between research-institutions and government bodies , to prevent
duplication of effort in the same research.
 increasing funding from venture capital and angel investors
 Then, In future, India has the potential to become the pharmacy of the world (भविष्य में भारत विश्व का
औषधालय बनने की क्षमता रखता है)
✍️ Conclusion: Thus, Indian pharma industry is facing a number of challenges, but it is also an
important sector both for economic growth through exports, as well as for human development
through affordable medicines. The government needs to take steps to address aforementioned
challenges, to ensure success on both the fronts.
43.3 🧪🔬 IPR: J UGAAD MENTALITY
Suppose $100 is being spent on R&D → within that how much is the contribution of the govt sector
and private sector? (सं शोधन एवं विकास के कु ल खर्च में सरकार और निजी क्षेत्र की हिस्सेदारी)

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 Contribution in R&D Funding Govt Private sector
India More than 55% Less than 40%
Top 10 economies of the world except India Less than 40% 68%
 German govt gives no tax benefit yet their private sector spends a large amount of funds on the
research development. जर्मन सरकार कं पनियों को सं शोधन करने पर टैक्स में कोई रियायत नहीं देती फिर भी वहां जमकर
सं शोधन होता है
 While India Govt provides tax benefits to companies who invest more money in R&D yet
companies are not doing it enthusiastically. हालांकि भारत सरकार सं शोधन और विकास में निवेश करने वाली
कं पनियों को टैक्स में रियायत देती है लेकिन फिर भी भारतीय कं पनियां इस बारे में उदासीनता दिखाती हैं
 such 'jugaad mentality' is not helping real professional Innovation, Which is required for success
of make in India and assemble in India. भारत की निजी क्षेत्र की कं पनियों में जुगाड़-मानसिकता के चलते पेशेवर तरीके
से नवाचार नहीं हो रहा.
43.3.1 🧪🔬 Gross domestic expenditure on Research & Development (GERD)
GERD= measures how much money is a country spending on R&D? सं शोधन और विकास में सकल घरेलू खर्च
Contribution in
R&D Funding
% of GDP spent on R&D (जीडीपी
का कितना प्रतिशत हिस्सा सं शोधन और
📔📔
ES21 TARGET/suggestion (आर्थिक
सर्वेक्षण के मुताबिक लक्ष्य क्या होना चाहिए)
विकास में जा रहा है)
India → 0.65%- 0.70% of GDP more than 2% of GDP
China → 1.35% (in 2005), 2.5% (2020) N/A
Others in top 10 1.5%-3% of GDP. N/A
economies →
43.3.2 🔬IPR-Progress so far as per ES24 📕
• Statutory Body: Anusandhan National Research Foundation (ANRF-2023) (1) to mobilise ₹
50,000 Crore during 2023–28 for R&D. (2) to forge collaborations among the industry,
academia and governments.
• 13,000 Indian start-ups working in artificial intelligence, the Internet of things, robotics, and
nanotechnology
• Start-ups filed more than 12,000 patent applications from 2016 to March 2024.
• Under the Global Innovation Index (GII), India’s rank improved consistently. But we are far
away from USA and China.
✍️Conclusion: Considering the limited fiscal capacity of the government (10-11% Tax:GDP; hardly
7% voters pay Income tax), versus multiple economic, social and defence obligations of the
government – it is difficult for government to increase the R&D spending. Need of the hour is for the
private sector/entrepreneurs to pick up the pace in R&D. it is need of the hour for achieving
developed country status by 2047.
43.4 🤵🧛‍♀️P RO-BUSINESS VS PRO-CRONY, 📔📔ES20V OL1CH3
(Definition:) Crony capitalism is an economic system in which businessmen thrive not by their hard
work or risk taking capacity, but through a nexus between a business class and the political class.

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(पक्षपाती पूंजीवाद: ऊधयोगपति अपनी मेहनत या जोखिम लेने की क्षमता से नहीं किन्तु, राजनीतिक वर्ग से सांठगांठ के चलते तरक्की करते
है) 📔📔ES20vol1ch3 found that:
 India: After election results, road contractors associated with the ruling party were given large
numbers of contracts to build Pradhan Mantri Gram Sadak Yojana (PMGSY, More in Pillar5).
But 1/4th of such roads exist only on paper. (सत्तापक्ष के पसं दीदा ठेके दार को रोड-निर्माण का काम दिया जाता हैं)
 Brazil’s public sector banks are more likely to approve loan applications of a company if the
company owner gave election donation to the ruling party. (सत्तापक्ष की पसं दीदा कं पनियों की लोन अर्जियों
को सरकारी बैंक जल्द ही पास कर देते हैं)
 Eastern Europe: When politically connected firms fail in business → Government will usually
bail them out using taxpayers' money. (घाटे में चल रही कं पनियों को सरकार बचा लेती है)
 Politically Connected Underwriters increase the likelihood of clients’ IPO applications being
approved by the Chinese share market regulator. (Ref: pillar1C)
 Across the world, crony capitalist firms pay lower taxes than their actual profits. (कर-चोरी)

43.4.1 🤲 🛒😰: Cronyism: Economist David Ricardo & Rent Seeking

 A Mobile company pays political bribes to get spectrum/license from the Government. (More in
Pillar5: Communication infrastructure)
 Then the Company will charge very high prices on the prepaid plans and data packs to recover
(1) Operational Costs (2) Profit (3) Bribes. मंत्री को दी गई घूस की रकम ग्राहक पर बोझ डालती है
 Similar examples could be cited in the coal-power based thermal electricity prices, Toll fees
charged by highways developers, heavy fees in private hospitals/ schools/colleges.
 Ricardo labelled it “rent seeking behaviour. (किरायावसूली/लुंटने की मानसिकता)”
 It doesn’t help in (new) wealth creation because abnormal profits extracted at common citizens’
expense.
 Such crony capitalists do not invest their high profit for research and innovation, they just use it
for debauchery & building more crony-relationship with politicians. (मुनाफे को नई खोज/सं सोधन मे नही
बल्कि ऐयाशी, और नेताओ से साँठगांठ बढ़ाने मे इस्तेमाल करते है)
ES20 said This type of rent-seeking behaviour was more prevalent till 2011. (यानी कि कांग्रेस सरकार निकम्मी
और भ्रष्ट थी- ऐसा आर्थिक सर्वेक्षण परोक्ष रूप से कहना चाहता है )
43.4.2 🤵🧛‍♀️Pro-business vs Pro-Crony Policies
🤵Pro-business policies (व्यापार समर्थक) 🧛‍♀️Pro-crony Policy (पक्षपाती नीतिया)
Make it easy to start a business, Register When existing companies pay political bribes to
property, enforce contracts, ⬆competition restrict entry of new companies / import
व्यापार में सुगमता, सं पत्ति का पं जीकरण, अनुबं धों को लागू restrictions of rival brands.
करवाना, स्पर्धा को बढ़ाना ⏬
→ competition → ↑ heavy profits, but at the
expense of the customer.
 Make it easy to obtain loans, resolve  When political masters pressurize Public
insolvency. This helps in biz expansion and Sector Banks to lend ₹ to unviable biz (अक्षम
wealth creation कं पनी को कर्ज देने के लिए मजबूर करना)
 कर्ज लेना, दिवालापन हल करना, व्यापार विस्तार और धन  When wilful defaulters not dealt strictly.

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 🤵Pro-business policies (व्यापार समर्थक) 🧛‍♀️Pro-crony Policy (पक्षपाती नीतिया)
सृजन मे मदद (जानबुज के कर्ज न चुकाने वालो पर ढील रखना)
 Thus, they’ve destroyed a total ₹1.4 lakh cr
of loan assets
 Transparency in bidding for natural  Government gives preferential treatment to
resources (प्राकृ तिक सं साधनों की नीलामीमे लगाने में crony companies. (कं पनियो के पक्षपाती रूप से
पारदर्शिता) आवंटन)
🤩Result? Competition, innovation, lower  Reverse will happen → Wealth is
prices and better service quality for citizens → destroyed. (धन का नाश/क्षय होता है।)
demand ⬆ → production ⬆ → GDP →
(new) wealth created.
✍️Conclusion: Cronyism doesn’t foster competitive markets. It fosters inefficiencies & results in
erosion of wealth. As Dr. Raghuram Rajan said, ‘There is a need for saving capitalism from the crony
capitalists”. अक्षमता में बढ़ोतरी पूंजी का व्यय बर्बादी.
💡Homework : refer to Pillar 1C- Corporate governance ka Mains Handout.
44 🏄‍♂️S ECTORS: EASE OF DOING BUSINESS

Figure 1: अपना बिजनेस शुरू करने के लिए सरकारी दफ्तरों के चक्कर काटते काटते थक चुका हूं
- (Definition) Ease of doing business refers to set of reforms taken to help the businessman set up
and operate his business with minimal obstacles and delays.
(Origin) World Bank used to monitor this, EoD Index based on simple average (equally weighted) of
10 parameters- such as no. of documents, time & cost involved in registering a property, getting an
electricity connection, paying taxes etc. However, has been discontinued after accusations of data
manipulation.
Economic Survey 2019-20 observed:
- 🍽
To open a shop, China & Singapore require only 4 licenses, but India requires >20.
- 🔫 45 documents required to get Delhi Police’s permission for opening a restaurant. Far less
number of documents required for a gun license!
- 🏗 Hong Kong construction permits available within 2 months, India takes 4 months.

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44.1 🏄‍♂️⚖️ E ASE OF DOING BIZ → JUDICIAL REFORMS: न्यायिक सुधार

 Theory of Matsyanyaya: If no ruler / Government → big fish will eat little fish.
 3.5 crore cases pending in the judicial system. (करोड़ों के स विलंबित है) – as per ES19.
 More than 80% of them are concentrated in the district and subordinate courts. Out of these
pending cases, ~70% are criminal cases, ~30% are civil cases. Some economists say poor
performance of the criminal justice system is of no direct consequence to the economy. But, a
behavioural economics: general lawlessness → Mafias thrive → investors are discouraged (e.g.
UP and Bihar). व्यवहार अर्थशास्त्र: के मुताबिक गुंडाराज निवेशकों को फै क्ट्री लगाने से हतोत्साहित करता है

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 Compared to many European countries we are 4-6 times slower in delivering court case verdict.
 Odisha, Bihar, West Bengal, Uttar Pradesh very slow rate. And these states are also lagging
behind in Sustainable Development Goal achievement as well- said ES19.
44.1.1 🏄‍♂️⚖️: 🕵‍♂️Suggested reforms#1: recruit more judges (न्यायाधीशों की भर्ती)
 At the district and subordinate level courts: sanctioned strength is ~23,000 judges but at present
we have ~18,000 judges. So we have to fill up the vacant posts through faster recruitment. [~
means approximate]
 High Court: Each HC Judges disposes ~2300 cases per year. So to clear all the backlog cases In
the next five years, ~360 additional HC judges required.
 Similarly a few more judges also required at the supreme court.
44.1.2 🏄‍♂️⚖️: 🕵‍♂️Suggested reforms#2: Create a new Judicial Administrative Service
 For faster clearance of cases, judicial staff’s efficiency also matters - Whether it is the Court
Manager, Bailiff, Judicial clerks, Legal assistants, Translators, Typists/Stenographers. But there
recruitment, syllabus, eligibility conditions and training mechanism is not uniform across India.
Many tribunals recruit staff on adhoc-contractual basis, and do not impart adequate training.
 Canada, USA and UK have separate cadre of Government employees for this.
 Therefore, ES19 proposed to create a specialized service called Indian Courts & Tribunal Services
(ICTS: भारतीय न्यायालय और अधिकरण सेवाएँ) with following functions:
o provide administrative support to judges प्रशासनिक मदद
o Improving administrative aspects of the legal system- Document storage, data
processing etc. backoffice functions through Information and Communications
Technology (ICT) and re-engineering. सूचना प्रौद्योगिकी का प्रशासन में अमल
 💼 Budget-2020: said We’ll reform the recruitment system for tribunal to attract best talents and
professional experts. (सबसे उत्कृ ष्ट क़ाबिलीयत वाले लोगों को नौकरी पे रखने की कोशिश करेंगे)
44.1.3 🏄‍♂️⚖️: 🗓🗓 Suggested reforms#3: ↑ courts’ working days (अदालत की छुट्टियाँ कम करो)
 Presently Central Government offices are open for 244 days per year.
 HC open for only 232 days, SC open for only 190 days in a year- Because they take longer
vacations in summer, winter, Holi, Diwali, Dussehra. (कार्य के दिनों में बढ़ोतरी, ताकि के स जल्दी से निपटा सके )
 2024: CJI Chandrachud added 8 more working days in Supreme Court.
44.1.4 🏄‍♂️⚖️: 📡📡 Suggested reforms#4: E-governance, ICT-Technology
 Lower courts consume a lot of time in sending Notice / summons, recording witness statements.
(अदालत का बुलावा भेजना, गवाह का बयान दर्ज करना)
 Higher court cannot proceed until it receives case’s records from the lower court.

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 Computers are used as mere ‘modern typewriters’. Their scanning, email, computation facilities
are not fully used. (कं प्यूटर बस आधुनिक टाइपराइटर का काम कर रहा है, कर्मचारियों को उसमें ईमेल इत्यादि की समझ नहीं.
कोर्ट की कार्यवाही में सूचना प्रौद्योगिकी का उपयोग बढ़ाना होगा।)
 So we have to focus on E-governance, ICT-Technology to increase the efficiency of the court
administration. Even Artificial Intelligence may be deployed for ordinary disputes e.g. Traffic
challan, or Cheque dishonour. (ट्राफिक के के सों का कृ त्रिम बुद्धिमत्ता द्वारा निपटान)
 Ministry of Law and Justice started eCourts Mission Mode Project - creation of the National
Judicial Data Grid (NJDG: राष्ट्रीय न्यायिक डेटा ग्रिड), digitalization of cases. It allows stake-holders to
keep track of individual cases and their evolving status. We must ensure its speedy
implementation and connectivity with all the courts.

44.1.5 🏄 ⚖️ 📡📡
‍♂️ : ENFORCING CONTRACTS PORTAL (2021-June)
 This portal launched by Department of Justice (under Ministry of Law)
 This portal provides 1) information/statistics about cases in Commercial/Civil Courts of Delhi,
Mumbai, Bengaluru and Kolkata 2) Commercial laws for reading/reference purpose. (भारत की
प्रमुख शहरों में दीवानी अदालतों में कितने कि इस जारी है उसका डेटा तथा विविध दीवानी कानूनों को पढ़ने की सुविधा)

44.1.6 🏄 ⚖️
‍♂️ : International Arbitration Centre @GIFT city - in Budget-2022 👜🥻
 Arbitration is an alternative dispute resolution system to settle disputes outside the judiciary
courts, using an impartial third party. (“मध्यस्थता” = अदालत के बाहर एक तीसरे निष्पक्ष व्यक्ति की मदद से विवाद
हल का वैकल्पिक तरीक़ा है )
 Presently, for disputes involving foreign companies vs Indian Govt/Companies → they
approach Arbitration centres at Singapore, Netherland etc. . (जब भारत सरकार/भारतीय कम्पनियों का विदेशी
कं पनियों के साथ विवाद हो जाए तो हम नीदरलैंड या सिंगापुर के ऐसे मध्यस्थता कें द्रों में जाते हैं)
 👜🥻Budget-2022: - An International Arbitration Centre will be set up in the GIFT City for
timely settlement of disputes under international jurisprudence. (ऐसा एक अंतरराष्ट्रीय मध्यस्थता कें द्र →
भारत की गिफ़्ट सिटी में भी बनाया जाएगा।)
44.1.7 🏄‍♂️⚖️: ✍️Conclusion on Judicial reforms? (निष्कर्ष)
 Thus, case pendency can be ⏬ through recruitment of more judges, creating separate cadre of
Judicial Administrative Services, ↑ in working days of court, and deploying ICT technology.
 Preamble to the Constitution of India defines that the first role of the State is to secure social,
economic, and political justice for all citizens. सभी नागरिकों को न्याय दिलवाना राज्य की जिम्मेदारी
 Therefore, need of the hour is to pursue judicial reforms on a war footing. OR
 Judicial delays discourage the victims from approaching the court. Victims silently continue to
suffer injustice or approach Mafia elements. It also fuels the atmosphere of insecurity (असुरक्षा),
vigilantism (लोगो द्वारा कानून को अपने हाथ में लेना) and mob lynching (भीड़ द्वारा वध करना).

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 Therefore SDG Goal 16: provide access to justice for all….hence need of the hour….
📘 📘 Homework: Read ES2018-19 Vol1 Ch5- Judicial Reforms
 Bullet 5.1 to 5.4. And then read figure11 (Your home-State data for interviews)
 Bullet 5.32 till the end of the chapter. To build the vocabulary.

44.2 🕵🕵 📔📔ES17&21: O VER REGULATION IN INDIA, TORA ACT

 Government officials create too many rules in such an uncertain climate, to save themselves
from criticism by the Court, CAG, CVC, CBI and media. (अनिश्चितताओ में स्वयं को निंदा/डांट/सजा से बचाने
के लिए अफसर अनावश्यक रूप से बहुत ज्यादा नियम बना लेते हैं- ताकि बाहर जनता कोर्ट और पत्रकारों को यह दिखा सके कि हम तो
नियम अनुसार ही निर्णय ले रहे हैं, कोई पक्षपात या धांधली नहीं हो रही)
 More number of rules does not mean less discretion for officers. In fact more number of rules →
more discretion because the rules can be interpreted in multiple ways → Opportunity for
corruption, nepotism. (ज्यादा नियम बनाने से अफसर की विवेकाधीन शक्ति भी बढ़ जाती है क्योंकि उन्हीं नियमों का वह
मौके /व्यक्ति के अनुसार अलग-अलग रूप से अर्थ गठन करता है.)
 Banking sector → overregulation → excessively cautious in giving loans → harms the Business
expansion. (भारतीय बैंकों में भी अति नियमन के चलते आजकल उद्योगपतियों को कर्ज लेने में असुविधा.)
 On the other hand, NBFC/Shadow Bank → under-regulation → Multiple financial scams have
occurred. (More in 📑Pillar#1B2: ILFS) गैर बैंकिं ग वित्तीय कं पनियों/प्रति छाया बैंकों में, कम-नियमन के चलते वित्तीय
धांधली के अवसर)
 If a company wants to undergo voluntary liquidation India: it takes 1570 days because The
company will have to seek a variety of no-objection certificates (NoC) from tax authorities,
Employee Provident Fund Organization, Foreign exchange laws etc. (यदि कोई स्वैच्छिक रूप से ही अपनी
कं पनी बं द करना चाहे तब भी भारत में 1500 दिन से ज्यादा लग जाते हैं विविध विभागों से अनापत्ति प्रमाण पत्र हासिल करने में)
 Even if there is no tax dispute or court litigation pending and even if all the paperwork is
complete, Still it will take so much time. (भले कोई मुकदमे ना चल रहे हो, सारे कागजात नियमों के हिसाब से जमा
किए गए हो, फिर भी इतना वक्त लगता है)
 As per the World Bank’ Ease of Doing Business report, it takes 1445 days to resolve a commercial
contract in India as compared just 120 days in Singapore. (दीवानी मुकदमे/वाणिज्यिक विवाद निपटाने में भारत
में 1400 से ज्यादा दिन लगते हैं जबकि सिंगापुर में यही दीवानी के स 120 दिन में निपट जाते है)
 such over regulation results in undue delays, rent seeking, opaque decision making by the
Government officials. (इस प्रकार का अति नियमन- देरी, भ्रष्टाचार, गैर-पारदर्शी निर्णय प्रक्रिया को प्रोत्साहित करता है)
🕵🕵 Overregulation: Solution- TORA Act (आगे का रास्ता)
44.2.1
 📔📔ES17 had proposed Transparency of Rules Act (TORA): Under such law, all organization
have to publish latest rules and regulations in a unified and comprehensible format, in English,
Hindi and vernacular languages on their website. (आर्थिक सर्वेक्षण ने सुझाया ‘नियमों की पारदर्शिता कानून’)

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 Then any rule, which is not explicitly given on the website = will not apply to people. जिसके अंतर्गत
हर एक विभाग ने सारे नियमों को अपनी वेबसाइट में अंग्रेजी हिंदी तथा प्रादेशिक भाषा में डालना होगा. जो नियम वेबसाइट पर नहीं
डाला होगा, उस नियम को मानने के लिए नागरिक बाध्य नहीं होगा)
 e.g. If the Education ministry’s TORA page says “for scholarship scheme: Student need to
submit ONLY aadhar card and school marksheet”, then officials can’t insist on a "student
identity card" or parent’s phonebill/electricity bill as additional proof.
 Benefit? ⏬officers' discretion → ⏬ the opportunities for bribery and harassment.(अफसरों के
विवेकाधीन सत्ता, भ्रष्टाचार, उत्पीड़न के अवसरों में कमी आएगी)
 You may read more about this at https://mrunal.org/2017/08/upsc-mains-answer-writing-gsm4-
transparency-of-rules-act-tora.html
🕵🕵 Overregulation Solution: ‘Minimum Government and Maximum Governance’:
44.2.2
 📔📔ES21 suggested Government to reduce the number of govt bodies for efficient supervision
e.g. (कम सरकार द्वारा ज्यादा प्रभावी शासन. सरकारी सं स्थाओं की सं ख्या में कमी की जाए)
 Govt has closed down All India Handloom Board, All India Handicrafts Board, Cotton Advisory
Board and Jute Advisory Board etc. (हथकरघा, हस्तशिल्प कपास जुट विकास से जुड़ी सरकारी सं स्थाओं को बं द किया)
 Government approved the merger of 1) Films Division, 2) Directorate of Film Festivals, 3)
National Film Archives of India 4) Children’s Film Society → into the National Film
Development Corporation (NFDC) (राष्ट्रीय चलचित्र विकास निगम में छोटी-छोटी सरकारी सं स्थाओं को विलीन किया)
 2021: Through an ordinance, Government has closed down many appellate bodies/ tribunals
under Cinematograph Act, 1952, : Customs Act, 1962; Patents Act, 1970; Airport Authority of
IndiaAct,1994;Trade Marks Act, 1999; Geographical Indications Of Goods (Registration and
Protection) Act, 1999; Protection of Plant Varieties and Farmers’RightsAct,2001; Control of
National Highways (Land and Traffic) Act,2002. (इन सब कानूनों में दी गई ट्रिब्यूनल को भी हटाया गया है.)
EXAMPLE:
 Cinematograph Act, 1952: Central Board of Film Certification (censor board) → Film
Certification Appellate Tribunal (FCAT- A statutory body under the ministry of Information
and Broadcasting), has been removed. So, now filmmakers will directly appeal Censor Board's
decision to High Court. (सूचना और प्रसारण मंत्रालय के अंतर्गत सेंसर बोर्ड के ऊपर की ट्रिब्यूनल को हटाया गया. अब फिल्म
निर्माताओं ने सेंसर बोर्ड के खिलाफ अपील में जाना हो तो सीधा हाईकोर्ट में जाना होगा)
Reasons for closing down tribunals?
1. Public at large, is not the litigant. Very few cases come. सामान्य जनता यहां पर वादकारी/मुकदमेबाज नहीं थी.
2. Yet too many officials' salary/bunglow/cars/peon/Personal-Assistant etc’s budget burden. इतने सारे
पदाधिकारियों के तनख्वाह गाड़ी बं गले के खर्चे का सरकार पर बोझ
3. These tribunals have not reduced the workload of High Court in a significant manner. इन ट्रिब्यूनल
को बनाने के बाद भी हाईकोर्ट के कार्य बोज में कोई कमी नहीं आई थी

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44.3 🏄‍♂️EODB 2.0 👜🥻B IN UDGET-2022 (व्यापार सुगमता का दूसरा चरण)
EODB 1.0 = So far, Govt removed nearly 1500 laws and 25,000 compliances
👜🥻Budget-2022 announced Next phase of Ease of Doing Business (EODB 2.0). It’ll focus on →
- idea of ‘trust-based governance’. (विश्वास आधारित सरकार)
- digitisation of manual processes (मैनुअल प्रक्रियाओं का डिजिटलीकरण)
- integration of the central and state-level systems through IT bridges (सूचना प्रौद्योगिकी द्वारा कें द्र और राज्य
सरकार की प्रणालियों के बीच सेतु/पुल बनाना)
- citizen-centric services (नागरिक-लक्षि सेवाएँ)
- removal of overlapping compliances. (अनुपालनों का व्यर्थ दोहराव हटाना)
- Crowdsourcing of suggestions (स्वयंसेवकों भीड़ द्वारा सुझावों को इकट्ठा करवाना)
🏻
✍ Conclusion-Template: World bank research found direct correlation between increase in EoD
vs. increases the number of firms setup in a country. Those new businesses create further job
opportunities, which help reduce poverty & inequality in a country. Thus, ease of doing business for
‘corporates’ results into the ‘ease of living’ for poor people. The aforementioned scheme / policies /
act / initiatives / challenges will play pivotal role in that regard / must be addressed on priority basis.
रोजगार सृजन, गरीबी निवारण के लिए जरूरी है- कॉरपोरेट कं पनियों को व्यापार में सुगमता होगी तभी गरीबों को (रोजगार की) सुगमता
होगी। उकत सुधार आवश्यक / उक्त समस्याओ को अग्रता क्रम से सुलझाना जरूरी
44.4 🏄‍♂️👷‍♂️E ASE OF DOING BIZ → LABOUR REFORMS : श्रम सुधार

➢ (Origin) To ensure workers welfare, we have variety of laws such as Minimum Wages Act,
1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal
Remuneration Act, 1976.
➢ However, over the years, these laws reduced to the ease of doing business for the
entrepreneur, because he has to fill up multiple forms for legal-compliance, and he’s
subjected to multiple annual inspections by the govt officials- which sometimes result in
harassment and bribery = No ease of doing biz.
➢ 2002: Therefore, Second National Labour Commission (2002) recommended govt to
simplify & consolidate these laws.
➢ 2017-18: Govt announced to replace existing central laws with just four labour codes (श्रम
सं हिता /कानून)
- 2020: these laws have been passed. Passed in both houses. (सं सद के दोनों सदन में पारित हो चुका है)
Old Laws → Merged in
 Payment of Wages Act, 1936 Code on Wages, 2019. इन सब कानूनों कोका
 Minimum Wages Act, 1948 एकीकरण कर बनाई गई ‘वेतन सं हिता’
 Payment of Bonus Act, 1965

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 Old Laws → Merged in
 Equal Remuneration Act, 1976
 Trade Union Act, 1926 Code on Industrial Relations, 2020
 Industrial Employment Act, 1946 (श्रमिक और उद्योगपति के बीच) औद्योगिक सं बं ध सं हिता
 Industrial Disputes Act, 1947
09 Labour Acts like Code on Social Security & Welfare, 2020
 Employees’ Compensation Act, 1923 (श्रमिक की) सामाजिक सुरक्षा और कल्याण सं हिता:
 Maternity Benefit Act, 1961
 Payment of Gratuity Act, 1972
 Unorganized Workers’ Social Security Act,
2008 etc.
13 Labour Acts like Code on Occupational Safety, Health &
 Factories Act, 1948 Working Conditions, 2020
 Plantation Labour Act, 1951 व्यावसायिक सुरक्षा, स्वास्थ्य और कार्य शर्तों पर श्रम सं हिता
 Mines Act, 1952
 Building and Other Constructions Workers’
Act, 1996 etc.

44.5 👷🏻‍♂️ PYQ → L ABOUR CODES +VE NEGATIVE (15M)

Q. Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market
reforms in India. What has been the progress so far in this regard? भारत में श्रम बाजार सुधारों के सं दर्भ में, चार
‘श्रम सं हिताओं’ के गुण व दोषों की विवेचना कीजिए। इस सं बं ध में, अभी तक क्या प्रगति हुई है? (15m,250w)

(Origin) previously an industrialist had to comply with 44 labour laws. Government has merged
them into four codes viz. (1) Code on Social Security 2020 (2) Occupational Safety, Health and
Working Conditions Code 2020 (3) Industrial Relations Code 2020; (4) Code on Wages.
44.5.1 👷🏻‍♂️ New labour codes- merits
• Ease of doing business and compliance. Reduced inspector raj.
• Women can opt to work the night shift, boosting LFPR.
• Better maternity benefits & amenities at workplaces for women when they join after delivery.
• Inter-state migrants: Employers need to provide migrant workers with an annual journey
allowance to cover their migration expenses. (प्रवासी मज़दूरों को प्रवास-भथ्था)
• There will be an online portal for the registration of interstate migrant workers for social
security benefits. (सामाजिक सुरक्षा योजनाओं के लिए ऑनलाइन पंजीकरण)
• Gig workers are recognized legally, which will help them avail social security benefits in the
future. (गिग-श्रमिकों को वैधानिक मान्यता)
• Employers of gig workers and platform workers (e.g. Zomato, Amazon) will need to
contribute a certain percentage of their turnover to a social security fund.
• Fixed-term employees will be treated on par with permanent workers for social security.
(कायमी मज़दूरों और नियत-समय के लिए रखे अस्थायी-मज़दूरों के बीच भेद नहीं किया जाएगा सामाजिक सुरक्षा योजनाओं में।)

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 • Firms are prohibited from hiring contractual employees for core activities, which means
more permanent jobs will be created. (क़ायमी नौकरियों में बढ़ोतरी होगी।)
• If a worker is terminated, then within three days, their outstanding salary needs to be
released. (बर्खास्त किए गए मज़दूर का बकाया वेतन तीन दिनों में चुकाना होगा।)
44.5.2 👷🏻‍♂️
New labour codes- Demerits
• If minimum wages are updated as per the provisions of labour codes, it will increase the cost
of production for the industrialists so there is lobbying / resistance / apprehensions by the
industrial groups. However, this (minimum wage increase fear) cannot be an excuse to deny
the workers a right to a respectable livelihood. (न्यूनतम वेतन में बढ़ोतरी से उद्योगपति का लागत ख़र्च बढ़ेगा।)
• Silent about the workplace toxicity and unrealistic targets, particularly in the service
industry. ( ऑफ़िस में ज़हरीला वातावरण और अवास्तविक लक्ष दिये जाते है, जिस पर क़ानून में कोई प्रावधान नहीं।)
• Is government permission required before laying off workers? Yes, BEFORE if 100 or more
workers. AFTER if 300 or more workers. So now many small factories can fire workers
without requiring government permission (छोटी फ़्रे क्ट्रीओ में बिना सरकार की मंज़ूरी के बाद मज़दूरों को
निकाला जा सके गा।)
• Workers don’t have an immediate right to strike. They need to give prior notice. This
prevents spontaneous strikes in response to harsh working conditions and other unjust
practices. (बिना नोटिस दिए मज़दूर हड़ताल पे नहीं जा सकते।)
• The code does not require factory safety provisions if there are less than 250 employees. This
implies that workers in small factories will be at risk of hazardous working conditions.
44.5.3 👷🏻‍♂️
New labour codes- Progress so far
• Passed in 2020, but not yet notified even as of 2024-Nov
• Most states have drafted the rules and invited public comments on it.
• But rules are yet to be notified and implemented on ground.
• First It was deferred because of corona, and later because of the general elections in 2024.
✍️ Conclusion: An ambitious reform for improving EoD & social security. But the need of the hour
is to address the aforementioned challenges and implement these 4 codes at the earliest. Then it will
help in a long way for SDG goal no. 8 on decent work and economic growth.
44.6 🏗E D→ O BUILDING REGULATIONS REFORMS BY 📕ES24
The present industrial building regulations are reducing the land available for the factory owner.
(इमारत निर्माण से जुड़े राज्य सरकार के नियमों के चलते फ़ै क्ट्री मालिक के लिए असल में ज़मीन की उपलब्धता बोहोत कम रहती है)
State Govt regulation India (varies in each State) Other nations
Land lost due to Ground Coverage:
factory need to leave __ % of the plot 30%@Philippines)
upto 60%
empty for ground water recharge. (भूजल 0%@Hong Kong
रिचार्ज के लिए प्लॉट की कु छ जगह ख़ाली रखो)
Limits on horizontal expansion of upto 90% plot-land lost in some much less in
building- to minimise fire risk and States. Philippines &
ensure ventilation and natural-light. Natural light may be harmful in Singapore.
(क्षैतिज विस्तार पे पाबंदी) certain industries like chemicals,

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 pharmaceuticals, electronics. So
this rule is counter-productive.
Limits on vertical expansion of
building: to manage density, traffic 13000 sqm (Japan),
In a 1000 sqm plot in Mumbai →
congestion, and facilitate the provision 15,000 sqm
a businessman can built up to 5000
of essential utilities such as water and (Singapore and
sqm
electricity. Also called floor area ratio Hong Kong)
(FAR ) (ऊर्ध्वाधर विस्तार पे पाबंदी)
Factory plot-land lost due to legally 6–35% in
required parking space (पार्किंग के लिए ख़ाली 12–70%. Philippines &
जगह छोडो) Singapore.

📕 ES24: In the above parameters, Haryana state is much progressive compared to other states. So
other states should copy its model.
44.6.1 ✍️ Conclusion on building reforms
Template Text
need to increase the availability of land for the factories without reducing the land
x thing imp
available for agriculture and forest.
y thing creating state government regulations on factories’ horizontal expansion, vertical
problem expansion and parking space.
There is a need to review and rationalize building regulations. Copy the best
z is need of the
models/regulations from other progressive states and nations from Haryana to
hour
Hong Kong.
it’ll help in long (1) better utilization of the available plot/land (2) increase manufacturing capacity
way for (3) reduce fixed cost of production per unit (4) create more jobs

45 👷‍♂️💰 M INIMUM WAGES (न्यूनतम वेतन)

- (Definition) minimum wage is the minimum amount of remuneration that an employer is legally
required to pay to the worker. It’s usually expressed in amount per day or per hour. (क़ानूनन रूप से
इससे कम तनख़्वाह/वेतन में मालिक किसी भी मज़दूर से काम नहीं करवा सकता)
- (Origin) The concept of minimum wages is not a modern-day innovation. Even Arthashastra
written in the 2nd Century BCE ordained the minimum wages for workers based on their skills
and occupation.

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- While the Britishers in enacted Payment of Wages Act, 1936 in India to ensure workers are paid
salaries in a timely fashion it did not provide for minimum wages computation or enforcement
or equal remuneration for males and females.
- After independence, Directive Principles of State Policy (राज्य के नीति-निर्देशक तत्त्व) mandated the
State (राज्य नीति के पथ प्रदर्शक सिद्धांत)
- to secure a living wage, a decent standard of life for all workers (Article 43),
- to provide adequate means of livelihood for all citizens & equal pay for equal work for As a
result, the unionized workers are able to get better wages compared to unorganized workers,
because unorganized workers have no representation in such advisory boards.

45.1.1 👷💰 ‍♂️ Minimum wages – significance / why required?

(DATA) While India has achieved 4-8% annual growth in GDP in the last two decades. We are now
a trillion dollar economy. BUT
 <Some data about poverty and inequality from pillar#6>
 More than 20% of Indian population lives below the poverty line – as per Suresh Tendulkar
Poverty line.
 More than 75% of Indians have personal wealth below $10,000.
 Richest 10% of Indians own more than 75% of our national wealth. etc. – as per Oxfam report.
Thus, India has achieved growth but it is not "inclusive" of all Indians. विकास तो हुआ लेकिन समावेशी नहीं
 Without minimum wages: Youth will be exploited. Underpaid person cannot invest in the
education, health, well-being of himself/family. गरीब आदमी स्वयं से अपने परिवार के शिक्षा स्वास्थ मैं निवेश नहीं
कर पाएगा

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 Underpaid person cannot consume more → Demand ⏬ → Direct indirect tax collection ⏬→
Fiscal resources of government ⏬ → Government also cannot invest in the demographic
dividend (health, education schemes). कराधान में आमदनी कम होगी सरकार खुद भी शिक्षा और स्वास्थ्य की योजनाओं
में ज्यादा पैसा नहीं लगा पाएगी
 Make in India, Assemble in India and other job creating initiatives will fail. व्यर्थ हो जाएगा
 Lacunas in minimum wages : ↑ craze for govt jobs. Educated Youth spending 5-7 years in
competitive exams = his "labour" is not channelized into the productive sectors of economy.
This is a waste of demographic dividend. युवाधन की ऊर्जा सं पूर्ण रुप से अर्थतंत्र के उत्पादक क्षेत्रों में नहीं जाएगी =
जनसांख्यिकीय लाभांश (dividend) नहीं मिलेगा
 Underpaid Worker: May become victim of ponzi schemes, bitcoin frauds (Recall: 1A1)
 Underpaid Worker: May himself start criminal / Anti-social activities. आपराधिक और असामाजिक
प्रवृत्तियों में लिप्त
 Underpaid Worker: Easier for terrorists and naxalites to brainwash him Propaganda → National
unity and security. राष्ट्रीय एकता और सुरक्षा को भी खतरा

45.1.1.1 😕
Gender injustice (लैंगिक न्याय की कमी)
Under the original Minimum wages act, the Minimum wages are the same for both male and female.
But, minimum wages of security guards are higher than domestic workers (This work is mostly done
by women). So, minimum wages need to be accommodative of the gender justice angle as well.

45.1.1.2 😕
New-age workers not covered
Minimum wage rates are set both by the Central and the State governments for employees working
in selected ‘scheduled’ employment (अनुसूचित रोजगार / नियोजन). But, with the advent of ICT and
startups, there has been a massive expansion in gig-workers but these are not mentioned in the old
law. Every 1 in 3 workers is not in the ambit of minimum wages.
✍️Conclusion: Without minimum wages, Indian youth will become more susceptible to
exploitation, depression, anti-social and anti-national activities. Without minimum wages we
cannot accomplish SDG GOAL 5: Gender Equality / SDG GOAL 10: Reduce Inequality within the
country. The Government of India has passed the code on wages for more robust framework of
minimum wages in India. Need of the hour is to notify it and start it implementation on war-footing.

45.2 👷‍♂️💰 M INIMUM WAGE REFORM: ANOOP SATPATHY COMMITTEE (2019)

Anoop Satpathy recommendations (given above) were not acceptable to the union government.
(Critiques argue there was pressure from the businessmen lobby not to increase minimum wages so
much) so now labour ministry has set up a new committee under Ajit Mishra and his report is
awaited.

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45.3 MINIMUM WAGES (न्यूनतम वेतन): ECONOMIC SURVEY’S SUGGESTIONS
Economic Survey 2019 appreciated Code on Wages and suggested further reforms →
45.3.1.1 Simplification and Rationalisation (सरलीकरण किया जाए, न्यायोचित बनाया जाए)
 Present system is extremely complex with nearly 2000 minimum wages defined for various
scheduled job categories. They should be clubbed together into four minimum wages based on
skill category i.e UNSKILLED, SEMI-SKILLED, SKILLED and HIGHLY SKILLED.
 Such Wage Code should be applicable on all jobs, all workers, and all sectors of economy-
Whether it is organised or unorganised.
45.3.1.2 Use ICT to enforce Minimum Wage (सूचना प्रौद्योगिकी का प्रयोग)
Bounded Rationality (तार्किकता की सीमाए) Humans can’t make the most rational and optimal decision
because they do not have all the necessary information
 So, spread MW related information through computer, mobile phones, rural haats, TV-Radio-
Massmedia. Then both worker and boss can do effective bargaining. (जागृति बढ़ायी जाए)
 Setup Digital dashboard to show updated minimum wages.
 Easy to remember helpline / complaint number for the workers.(शिकायत निवारण)
 Labour ministry should announced we punished “X” number of violators, so it puts fear into
other employers, and discourages them from violating minimum wages. (दंडित उद्योगपतियों के नाम
ज़ाहिर करो ताकि बाक़ी उद्योगपति भी डरें, और क़ानून का पालन करें)
45.3.1.3 Adopt Best Practices from abroad (अन्य देशों की अच्छी नीतियों से सीखे)
We should also implement the following best practices from other Nations:
 UAE: All companies are legally mandated to pay all types of salary through banks only.
 South Africa: ‘Impimpi Alive’ system wherein workers can send anonymous SMS messages to
Labour Department, and within 48 hrs, an inspector will come to the factory.
 U.S.: They’ve apps to notify the minimum wages related updates to all the workers & companies.

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 🏻
45.3.2 ✍ Conclusion: Indeed minimum wage enforcement is important
Minimum wages is a subset of labour welfare policies. So we can always connect it with keyword
such as inclusive growth, sustainable development, poverty removal, Social justice and accordingly
we can make a conclusion linking them all:
 India is witnessing a period of demographic dividend (जनसांख्यिकीय लाभांश). But, even if the youth is
equipped with vocational skills (व्यावसायिक कौशल ) but unable to find well paying jobs, then such
circumstances will breed social unrest and perpetuate social injustice. (अच्छी तनख्वाह नहीं मिलेगी तो
समाज में तनाव बढ़ेगा, सामाजिक न्याय नहीं हो पाएगा)
 SDG Goal #8 requires India to promote full and productive employment and decent work for all.
Minimum wages protect the vulnerable workers, reduce inequality and poverty. (सतत विकास लक्ष्यों
में भी सभी को रोजगार देने की बात तभी और समानता और गरीबी कम होगी)
 Therefore, establishing an effective minimum wage system is important for sustainable
development and inclusive growth (सतत एवं समावेशी विकास के लिए यह अति आवश्यक) .
OR
“although for complying with the DPSP we have enacted multiple laws but successive Committees and
economic surveys observed these laws have failed to bring about the change in letter and spirit so
aforementioned reforms are necessary.”

46 SECTORS OF ECONOMY → MFG → 👘T EXTILE

Parameter contribution of textile sector

Jobs 2nd largest job provider after Agri. 4.5 crore people directly engaged in this sector
Export India among the top five exporting nations for textile.

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 Size India is the world’s second-largest clothing manufacturer

46.1.1 👘👢Textile & Leather Industry: Past Economic Surveys’ suggestions:

 India is well positioned to get ahead of China in textile sector because wage costs in most Indian
states are significantly lower than in China’s wages. भारत में कपड़ा उद्योग के मजदूरों के वेतन चीन की अपेक्षा कम
 Textile leather industries should be encouraged to move to smaller towns so they can absorb the
Indian women workers available there. कारखानों को छोटे शहरों में स्थानांतरित करने के लिए प्रोत्साहन देना चाहिए
 To increase export earning, we should go beyond textile → readymade garments. But that
requires R&D in foreigners’ fashion, style & size preferences. विदेशी ग्राहकों की पसं द नापसं द के हिसाब से
रेडीमेड/तैयार कपड़ों के सं शोधन की जरूरत
 👢leather industry, India primarily exports leather-based shoes, but nowadays foreigners prefer
non-leather shoes for they are 1) cheaper 2) more comfortable 3) more fashionable. So, we've to
do R&D for non-leather shoes. (गैर-चमड़े के जूते विदेशी ग्राहक ज़्यादा पसं द करते हैं क्योंकि वे सस्ते और आरामदायक हैं
तो हमने इस पर सं शोधन की ज़रूरत है)
 😥Challenges? (1) Getting quality cattle hides becoming difficult due to present socio-political
atmosphere so leather industry facing problems (2) Bangladesh & Ethiopia emerging as
textile/leather hubs and they get duty free access to USA/EU for being L.D.C. (Although now
Bangladesh exiting LDC so some relief for India). ButIndia textile industry facing steep
competition, need to sign FTAs with likeminded nations.(Ref 📑Pillar#3B:WTO)
 Fragmented nature of India's apparel sector bcoz raw materials sourced predominantly from
Maharashtra, Gujarat, and Tamil Nadu, but apparel-factories are concentrated in southern
states. This contributes to higher transportation costs and delays. Said 📕ES24. (विखं डित क्षेत्र है क्योंकि
कच्चा माल पश्चिम के राज्य में बनाया जाता है लेकिन तैयार कपड़े दक्षिण के राज्यों में बनाए जाते हैं- राज्यों के बीच फ़ासला बहुत है
इसलिए है कि परिवहन का ख़र्चा बढ़ता है उत्पादन समय में विलंब आता है।)
✍ 🏻👘👢 Conclusion-Template? Textile / Leather industry has great potential to generate new jobs
especially for Indian women, & augment our income from exports. These industries can greatly help
achieving SDG Goal #1: End poverty, Goal #5: Gender Empowerment, Goal #8: Promote sustained,
inclusive and sustainable economic growth, Goal #10: Reduce inequality within India.
Aforementioned policy / scheme / initiative / challenges are crucial in that regard / must be
addressed on priority basis. महिलाओं के लिए रोजगार- महिला सशक्तिकरण, गरीबी निवारण, निर्यात में बढ़ोतरी के लिए इस क्षेत्र
की समस्याओं को जल्द से/ अग्रता क्रम से निपटाना जरूरी.

46.2 👘R EGIONAL RESOURCE BASED MFG (PYQ-GSM1-2019)

Can the strategy of regional-resource based manufacturing help in promoting employment in India?
(क्या प्रादेशिक सं साधन-आधारित विनिर्माण की रणनीति भारत में रोज़गार की प्रोन्नति करने में सहायक हो सकती है ?) (10m,150
words GSM1–2019)
➢ (origin) After the LPG reforms of 1991, India jumped directly from agriculture dominated to
service sector dominated economy.

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 ➢ However, the past economic surveys suggested: To reap India’s demographic dividend we
must focus on the low skilled manufacturing activities,
➢ Because the large pool of Indian youth lacks the high level of skills required for service sector
industries.
➢ In this regard, regional-resource based mfg can ↑ employment in following ways:
46.2.1 👘Bamboo Regional Resource Based MFG
➢ India has 30% of the world’s bamboo resources
➢ but contributes only 4% share of the global market.
➢ Potential for Bamboo based industries in NE: Mobile Cover, Toothpick, Pen Stand,
Furniture, Coffin, Broom, Tea Coaster, Key Chain, photo frames, Hanger, Ash Tray, Ladder
and even Water Bottle Cover
➢ In states like Tripura, Bamboo sector can provide dependable and respectable employment
opportunities to at least 20,000 bamboo growers.
46.2.2 👘 Coir Regional Resource Based MFG
➢ Coir industry is mainly concentrated in the coastal states of Kerala, Tamil Nadu, Andhra
Pradesh, Karnataka, Maharashtra, Goa, Orissa
➢ because of the availability of coconut husks.
➢ @present, 50% coconut husks used in coir industry. Rest used as fuel in rural areas.
➢ Thus, coir industry is not developed to its full potential due to insufficient finance, R&D, lack
of storage facilities, no direct contact with industrial users, insufficient marketing
mechanism for coir fibre.
➢ Presently, coir industry employs 7 lakh people, → 80% are female.
➢ If we address the above issues, we can ↑ processing of coconut husks → coir → GDP,
employment, LFPR(Women)
46.2.3 👘 JUTE Regional Resource Based MFG
➢ Jute = 2nd most imp natural fibre produced in India after cotton.
➢ About 40 lakh farmers cultivate jute but they’re mostly coarser varieties (मोटी/ खुरदरी किस्म )
which are only suitable for grain bags
➢ If they’re given quality seeds & agro training → finer variety of jute ( महीन किस्म की)→ paper,
cushion covers, mattress, TV cover, dining table accessories, table mats, etc.
➢ Premium quality jute → air conditioning , automobile interiors.
➢ Mfg hubs → jobs 4 lakhs of youth in Bengal surrounding regions.

✍️ Conclusion: Thus, the regional resource based manufacturing can greatly help generating
employment in India, especially in the case of renewable resources such as agro, bamboo, forest, jute-
coir and other natural fibre based industries, and help in achievement of SDG Goals 1 (No poverty),
5 (Gender), 8 (Economic growth), 12 (Responsible consumption and production) (इस प्रकार, क्षेत्रीय
सं साधन आधारित विनिर्माण भारत में रोजगार पैदा करने में काफी मदद कर सकता है, खासकर कृ षि, बांस, वन, जूट-कॉयर और अन्य
प्राकृ तिक रेशों आधारित उद्योगों से।, और सतत-विकास लक्ष्य नंबर 1 (ग़रीबी उन्मूलन), 5 (लिंग समानता), 8 (आर्थिक विकास), 12
(जिम्मेदार उपभोग और उत्पादन) की उपलब्धि में मदद कर सकता है।)

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46.3 👶🏭 M FG & SERVICES → MSME → MINISTRY

• Number of MSME: 4.69 Crore MSMEs are registered on the Udyam Registration portal
(2024)
• (Data) MSMEs are the backbone of the Indian economy, contributing approximately 30%
GDP, 45% manufacturing output, and jobs to 11 crore Indians.
46.3.1 MSME: What has been done to help them?
✓ Loans upto 1 crore within 59 minutes through an online portal. (Ref: Pillar#1D handout, also
revise Mudra & Standup India while you’re there!)
✓ Interest subvention of 2% for all GST registered MSMEs loans. ब्याज में 2% सब्सिडी
✓ MSME / Corporates can borrow money from banks/NBFCs under Bill of exchange / Factoring /
Trade Receivables Discounting System (TReDS). Technical norms are further tweaked to help
them. (More on TREDS = Ref: 📑Pillar#1C)
✓ All govt organizations to compulsorily procure 25% from MSMEs, out of that 25% → 3% from
women owned MSME. (previously women didnot have internal quota)
✓ All Central Govt Companies must compulsorily procure through GeM portal. (अनिवार्य रूप से)
✓ Simplified forms for MSME owners to comply with labour laws. (सरलीकरण)
✓ Factory / labour Inspector will inspect MSME unit via computerised random allotment- to
prevent any nepotism / collusion. (कम्प्यूटरीकृ त आबं टन= भाई-भतीजावाद / मिलीभगत पे रोक)
✓ Self-declaration for air and water pollution laws. (हवा और जल प्रदूषण के कानूनों का अनुपालन स्वप्रमाणित)
✓ Only 10% MSME units to be inspected to checked. (स्वप्रमाणित उद्योगों में से के वल 10% की प्रदूषण अधिकारियों
द्वारा जांच होगी. यानी कि हर एक लघु उद्योग में जांच करने के नाम पर रिश्वत माँगने के अवसर कम हुए)
✓ For minor violations under the Companies Act, entrepreneurs no longer have to approach
NCLT, but file penalties online using simple forms. (सामान्य अपराधों के लिए ट्रिब्यूनल में जाने की जरूरत नहीं
सीधा ऑनलाइन जुर्माने का भुगतान)

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46.3.2 MSME: What should be done in future?
AREA Suggested reforms
Loans amount - MUDRA gives upto 10 lakh rupees loans. This limit need to be increased /
doubled- considering the level of inflation and the increased cost of doing
business after Corona and Russia,-Ukraine crisis.
Loan approval - We should integrate data from GSTN, Income Tax, Credit Bureaus, Land
ownership records, Fraud Reports, etc. & give it to banks so they can easily
know the credit-worthiness of an MSME owner and process his loan
applications. (सरकारी सं स्थाओं के डेटा का एकीकरण)
NPA - When Government bans plastic bags or SC puts limits on firecrackers, it
affects MSME producing those goods, and turns their loans into NPA. So to
help MSME during such ‘external shocks’, we need to create a Distressed
Asset Fund (आपदाग्रस्त परिसं पत्ति कोष) to help them.
Payment - Government should set up an online portal where All MSME can upload
their invoices. If any client not paying on time, Government should punish
him.
Training - Focus on technology adoption, capacity building, upstream and
downstream linkages.
- Teach rural entrepreneurs how to register for GST, how to file IT
return/PAN application, loan document preparation, etc.
Financial - Government should actively enroll MSME employees in pension &
inclusion

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 insurance schemes.
Sunset - Address the problem of MSME Dwarfism / Ever greening of the scheme
benefits by adding Sunset clauses e.g. an MSME can’t get government
benefit after “X” years or “Y” number of times. More details in the next
segment below:

46.4 👨🏻‍🏭 MSME POLICIES OF GOVT (PYQ-GSM3–2023, 150 WORDS)

Q. Faster economic growth requires increased share of the manufacturing sector in GDP,
particularly of MSMEs. Comment on the present policies of the Government in this regard. (जी० डी०
पी० में विनिर्माण क्षेत्र विशेषकर एम० एस० एम० ई० की बढ़ी हुई हिस्सदारी तज आर्थिक सं वृद्धि के लिए आवश्यक है। इस सं बंध में
सरकार की वर्तमान नीतियों पर टिप्पणी कीजिए।)
46.4.1 👨🏻‍🏭
Intro: MSME policies of the Government
➢ (Definition:) MSME investment not more than 50cr and turnover not more than 250 cr.
Internal subtypes: Micro small and medium.
➢ (Data) as per Economic Survey 2023: employ more than nine crore people and export more
than ₹9 lakh crore worth goods and services.
➢ govt taken following steps to help them :
46.4.2 👨🏻‍🏭
Body: MSME policies of Government
➢ Loan / Credit: PM’s Employment Generation Programme , MUDRA, ECLGS, scheme for
subordinate debt. Faster loan, approval, credit guarantee, subsidy on interest.
➢ Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) → Credit
Guarantee Scheme (CGS)= collateral- free loans of up to ₹5 Crore, with a guaranteed
coverage of up to 85 per cent.
➢ 25% quota in public procurement.
➢ Exemption from inspection by pollution, labour and factory officials. MSME need to send
only self-compliance reports.
➢ Portals / E-Governance: Udyam portal, CHAMPIONS WebPortal, MSME Samadhaan,
MSME- Sampark etc. that help in registration, grievance redressal, availing various benefits
of schemes and subsidies.
➢ Note: you can write truckload of other schemes also, but within 150 word limit this is the
maximum possible!
46.4.3 👨🏻‍🏭 ✍️ Conclusion: - link with SDG Goals
➢ (SDG 1) No Poverty ग़रीबी-उन्मूलन
➢ (SDG 8) Decent Work and Economic Growth सबको गरिमापूर्ण कार्य मिले और आर्थिक वृद्धि हो
➢ (SDG 5) Gender Equality: 2 out of 9 cr MSME workers are women. (एक लिंग समानता।)
➢ by 2047 make India developed nation. (भारत को एक विकसित देश बनाना)

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46.5 📔📔 👨🏻↘️👶🏻🏭 ES19: MSME DWARFISM SHD BE DISCOURAGED (बौनापन)

If a firm becomes larger in size, then, it has to comply with many legal regulations:
Acts / Policy Only Applicable on Legal compulsion on the owner
Industrial Disputes 100/> workers Factory owner must get Government
Act,1947 approval before retrenching
workers/shutting units
Factories Act, 1948 Min 10-20 workers Factory owner must provide restroom,
depending on whether creches and other facilities. फै क्टरी मालिक
power is used in mfg/ or ने मज़दूरों के लिए शौचालय शिशुगृह इत्यादि की
not? सुविधा देनी होगी
Employees’ State Insurance 10/> workers Factory owner required to co-
Act, 1948 contribute ₹ ₹ in insurance / pension
accounts of low-salaried workers
Employees’ Provident 20/> workers Factory owner required to co-
Fund & Miscellaneous contribute ₹ ₹ in insurance / pension
Provisions Act, 1952 accounts of low-salaried workers
Meanwhile small firms get benefit of
 Priority Sector Lending (Ref:Pillar#1A2: Monetary policy), Public Procurement Quota.
 Benefits in Government tendering such as no need to pay fees / security deposits. Some
tender/contracts are exclusively reserved for MSME.
 GST Composition scheme: where they have to submit the collected GST to Government on a
quarterly basis instead of monthly basis, if turnover less than “X” crores. (Ref: Pillar#2-GST)
46.5.1 👨🏻↘️👶🏻🏭: 🧔 MSME ‘Dwarfism’ is caused by Govt schemes (बौनापन)
📔📔ES19 observed above schemes/laws create a “perverse” incentive for firms to remain small.
(अलग-अलग सरकारी योजनाएं और कानूनों में छू ट घाट के चलते लघु उद्योगों को छोटा रहने का विकृ त प्रोत्साहन मिल रहा है।)
 If the firms grow beyond these worker / turnover → unable to obtain the above benefits.
 So, entrepreneurs find it optimal to start a new firm to continue availing these benefits. But then
firm doesn’t benefit from economies of scale → they can’t create large number of jobs. (बड़े पैमाने
पर धंधा करने से होने वाले फायदे रोजगार सृजन)

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 Thus infant firms → giant companies...nope; but infant firms → ‘dwarfs’. Such drawf firm
contribute neither to productivity or jobs. (बौनेपन से ग्रसित उधोग न तो पैदावार बढ़ाते है, न तो रोजगार)
 a 40-year old firm in Mexico generates 40% more jobs than an 40-year old Indian firm.
 Productivity level for 40-year old enterprises in the U.S. was more than 4x of a newly setup firm.
This is not true in India (बौनेपन के चलते भारतीय उद्योग की उत्पादकता- अमेरिका और मेक्सिको से कम)
46.5.2 👨🏻↗️🤴🏭 MSME ‘Dwarfism’: Suggested Reforms by ES19
 Under Priority Sector Lending (PSL-More in 📑Pillar#1A2), banks are required to lend 7.5% of
their annual loans to Micro enterprises. These norms should be tweaked to give first preference
to loan applications by ‘start ups’ and ‘infants’ firms. (प्राथमिक क्षेत्र के ऋण मानक में सुधार किए जाएं )
 Sunset Clause for Incentives: MSME benefits should have a ‘sunset’ clause, say, after 5-7 years,
the firm will no longer be able to claim it. If owner starts a new firm, then based on his Aadhar
card number, the system should alert authorities, so he can’t claim the MSME benefits in the new
firm. same point repeated by 📕ES24 (प्रोत्साहन के लिए सूर्यास्त उपनियम. मात्र सरकारी योजनाओं का बार बार लाभ
लेने के लिए नई नई कं पनियां बनाने वाले लघु उद्योगपति को आधार कार्ड नंबर जांच कर रोका जाए)
 Focus on high employment sectors such as rubber and plastic products, electronic and optical
products, transport equipment, machinery, textiles and leather & leather products. (अधिक रोजगार
सृजन की क्षमता रखने वाले उद्योगों को वरीयता दी जाए)
 Focus on Service Sectors with high spillover effects (प्लवन प्रभाव) such as Tourism. Because it can
open up new jobs in tour and safari guides, hotels, catering and housekeeping staff, shops at
tourist spots etc. It would also reduce the migration of the rural labour force to other States.
🏻
46.5.3 ✍ Conclusion-Template for MSME (निष्कर्ष)
MSMEs contribute 45% to the manufacturing sector’s output and 40% of nation’s exports.
They provide employment & entrepreneurship opportunities to weaker sections of the society. Thus
they play a pivotal role for both industrial development and human development of India. <+ the
SDG goals in Textile Template> Aforementioned Policy / Scheme / Act / Bill / Reform is important
to catalyse that role played by MSMEs. लघु उद्योग का भारत के सकल घरेलू उत्पादन तथा देश के निर्यात में प्रमुख योगदान है.
कमजोर वर्ग को रोजगार के अवसर देता है. मानव विकास के लिए और औद्योगिक विकास के लिए इनको मदद देना जरूरी. इसलिए उक्त
सुधार महत्वपूर्ण है या उक्त समस्याओं को अग्रता क्रम से सुलझाना जरूरी.
46.6 📕ES24 ON MFG SECTORS
Sectors facing slowdown Sectors seeing boom
chemicals, wood products and furniture,
textiles, food products, beverages and
pharmaceuticals, transport equipment, steel and
tobacco and petroleum products and leather
machinery
major exporters in India major importers in India
steel, pharmaceuticals, and automobiles. coal, capital goods and chemicals

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46.6.1 📕ES24: suggestions to improve industrialisation (औद्योगिकीकरण को कै से बेहतर करे )
Area Issue highlighted by ES
R&D improves global competitiveness and profitability. Private sector must
R&D investment.
overcome its Jugaad-mentality take the lead without waiting for fiscal
सं शोधन और विकास
incentives like Tax cut and subsidies.
Many MSME avoid registering under any law- to evade taxes & labour laws
But then banker will not easily pass the loan because they are unregistered.
greater Most of them in Textile, food processing.
formalisation if a unit does not get legally-registered under shop establishment act/
factories act/partnership act/ companies act etc. Then it will struggle to get
bank loans and international contracts. (औपचारिकरण)
MSMEs need atleast Rs 20–25 lakh crore of additional loans. But they
improving access to struggle to get loans due to lack of collateral or credit history, high interest
finance/loans. rates, complex documentation requirements, and long application processing
times. (ऋण लेने में कठिनाई)
facilitating market refer to challenges highlighted in the pillar3 esp. Protectionism & FTAs
access (विदेशी बाज़ार में प्रवेश मुश्किल।)
local issues- transport infra global issue- Russia-Ukraine/China-Taiwan/ oil
alleviating supply
prices after Iran backed rebels blocking ships in Israel/Palestine conflict in
chain bottlenecks.
red-sea. (आपूर्ति शृं खला में कठिनाइयां)

46.7 📕ES24: MITTLESTAND- COPY GERMAN MODEL

• (Definition:) Mittelstand commonly refers to a group of stable business enterprises in
Germany, Austria and Switzerland that have proved successful in enduring economic boom-
bust cycles (मित्तलस्टैंड यानी जर्मनी ऑस्ट्रिया और स्विट्ज़रलैंड की ऐसी छोटी और मध्यम कं पनियां जिन्होंने तेज़ी मंदी के
बीच सफलता से अपना अस्तित्व बनाए रखा है।)
• Most of these Mittelstand companies are small and medium-sized enterprises with annual
revenues up to 50 million Euro and a maximum of 500 employees.
• 2015: India and Germany started ‘Make in India Mittelstand (MIIM),’ a collaboration to
encouraging German-MSME companies to invest in Indian MSME companies.
46.7.1 Lessons from German Mittelstand model for India as per ES24 📕
• Deregulation is a vital.(नियंत्रण कम किया जाए)
• Reforms at the level of sub-national (state and local) governments. (राज्य और नगर पालिका स्तर पर
ख़ास कर सुधार की ज़रूरत)
• Physical and digital connectivity (industrial and freight corridors) (भौतिक और डिजिटल सं योजकता)
• infrastructure upgrade and development (बुनियादी सं रचना का विकास)
• Focus on automotive, renewables, construction, consumer goods, electronics, chemical, and
waste/ water management sectors. (वाहन, नवीकरणीय ऊर्जा, निर्माण, उपभोक्ता वस्तुएं , इलेक्ट्रॉनिक्स, रसायन
और अपशिष्ट/जल प्रबं धन क्षेत्र।)

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 • Striking the right balance with China with respect to (1) import-export pe tax/restrictions (2)
FDI regulation (3) national security (e.g. data-security / 5G devices). [चीन के साथ आयात निर्यात
विदेशी प्रत्यक्ष निवेश और राष्ट्रीय सुरक्षा के मुद्दों पर सहकार और स्पर्धा के बीच एक सही सं तुलन बनाना है।]

47 👨‍💻💿S ERVICE SECTOR (सेवा क्षेत्र) AND SDG

 (DATA) Services sector’s accounts for more than 50% of GDP and 80% of total FDI inflows.
भारत का ज्यादातर सकल घरेलू उत्पाद और विदेशी प्रत्यक्ष निवेश सेवा क्षेत्र से आता है
 High FDI attracting sectors are Computer Software & Hardware, ‘e-Retail Trading’, ‘Education',
pharma-research service, etc. (महत्तम विदेशी निवेश इन क्षेत्रों में)

47.1.1 🤩
Service sector domination positive on SDG
 many service sector jobs provide work from home opportunity / even in the office the work is
less physically demanding= which is a boon for women, mothers, elderly and physically
handicapped.
 work from home jobs = ⬇️ travel, communication, office electricity air conditioner requirement
= environment conservation, Global warming controlled.
 Service sector requires less quantity of physical inputs → environment exploitation ⬇️
 Service sector is less vulnerable to external shocks compared to manufacturing / agriculture e.g.
Ukraine war → expensive fertiliser, Corona: car-microchip crisis.

47.1.2 😥 Service sector domination negative / limitations on SDG

recycle the points from initial part of this handout.

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47.2 SERVICE SECTOR: DIGITALIZATION OF ECONOMY (PYQ-GSM3–2023, 10M)
➢ What is the status of digitalization in the Indian economy? Examine the problems faced in
this regard and suggest improvements (भारतीय अर्थव्यवस्था में डिजिटिकरण की स्थिति क्या है? इस सं बं ध में
आने वाली समस्याओं का परीक्षण कीजिए और सुधार के लिए सुझाव दीजिए।)
➢ Context: Rise of UPI, ONDC, Post-Corona Work from home.
47.2.1 Intro to digitalisation (परिचय)
➢ (Definition:) Digitalization in the economy is the process of integrating digital technologies
into all aspects of economic activity, from production and distribution to consumption and
employment. (उत्पादन वितरण, उपभोग और रोज़गार इन सभी आर्थिक गतिविधियों में डिजिटल प्रौद्योगिकी को एकीकृ त
करने से अर्थतंत्र का डिजिटिकरण होता है।)
➢ (Origin) This process started after LPG reforms, and catalysed during Corona lock down. (वैसे
तो यह प्रक्रिया LPG सुधार से ही शुरू हो गई थी, और कोरोना के दौरान तालाबं दी ने इसमें उद्दीपक का कार्य किया।)
47.2.2 Body1: Digitisation- present status (वर्तमान स्थिति)
➢ Banking: UPI, IMPS, online banking, CBDC
➢ Share market: DEMAT, discount brokers like Zerodha
➢ Insurance and pension policies can be renewed without visiting the office. (बिना दफ्तरों के धक्के
खाए बीमा और पेंशन नीतिओ का नवीनीकरण हो सकता है।)
➢ Government portals/technologies for budget, subsidies, and cash transfers with Aadhar
authentication. (सब्सिडी और प्रत्यक्ष लाभ अंतरण दी डिजिटल तरीक़े से लाभार्थी को दिया जाता है।)
➢ Online IT/GST Tax payment portals, faceless assessment and appeal. (बिना सरकारी दफतरों के धक्के
खाए करदाता कर भर सकता है,कर-नोटिसों के जवाब और अपील दायर सकता है।)
➢ Export: ICT service sector is a major exporter, as well as a recipient of FDI. (सूचना प्रसारण की
डिजिटल क्षेत्र से निर्यात में कमाई और विदेशी प्रत्यक्ष निवेश की प्राप्ति होती है।)
➢ Agriculture: E-NAM portals, e-negotiable warehouse receipts.
➢ Mfg: greater use of automation and digitization under the industrial revolution 4.0; (चौथी
औद्योगिक क्रांति के तहत विनिर्माण में डिजिटल प्रणालियों का उपयोग बढ़ा है)
➢ Communication Infrastructure: 4G & 5G revolution changed the way we communicate and
entertain ourselves; (सं चार व्यवस्था में फ़ाइवजी क्रांति)
➢ Drones & aviation sector depends heavily on digital technology.
➢ Transport e.g. E-Toll via FASTAG, National common mobility card (NCMC), GPS
technology for supply chain management. (परिवहन क्षेत्र में)
➢ E-learning, E-medicine. (पढ़ाई और औषधि में ई-तकनीकों का उपयोग।)
47.2.3 Body2:Digitisation- problems and suggestions (समस्या और सुझाव)
✋🚨Problem समस्या Solution सुझाव
Literacy, language barrier (साक्षरता का computer training in vernacular language. Updating school
अभाव, भाषा की बाधा) curriculum.
Affordability/Digital Divide for
consumers: both in hardware,
Tax break/subsidies, PLI in electronics.
internet plans (डिजिटल उपकरण और
इंटरनेट ज़्ग़रीबो के लिए किफ़ायती बनाना ज़रूरी।)

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Affordability for entrepreneurs MDR subsidy, ONDC.
Monopoly/duopoly of the tech giants
like Google; Swiggy-Zomato;
ONDC-platform; faster justice by the Competition
Amazon-Flipkart, etc. = increase the
Commission of India.
cost of app development and good
service delivery (एकाधिकार)
R&D, awareness, stricter vigilance, faster punishment.
Cybersecurity and privacy (साइबर सुरक्षा
Reducing reliance on Chinese equipment, routers, mobile
और निजता।)
phones, etc.
Cash economy = tax evasion easier. Incentivising the use of digital payments through tax breaks
So, businessmen prefer cash while taking stricter action on tax evaders. (अब डिजिटल भुगतान
payment. पर करों में छू ट मिले और कर चोरी करने वालों पर सख़्ती)
Electricity disruptions (अविरल बिजली Need to improve 24 x 7 availability, especially in rural and
आपूर्ति) remote areas; renewable sources.
Improving the general law and order situation, developing
Internet curbs/outages during curfew
new technologies that prevent the spread of fake news and
e.g. Manipur, J&K: make it difficult
misinformation without banning the internet completely.
for their businessmen to do online
(दंगों के द्वारा इंटरनेट को सं पूर्ण रूप से बं द करने की बजाए ग़लत सूचना के प्रसारण
biz.
पर रोक थाम, ताकि विद्यार्थी और व्यापारियों को इंटरनेट बँधी से नुक़सान न हो।)
47.2.4 ✍️
Conclusion: yes, we need to improve digitisation for SDG
➢ (SDG 8) Decent Work and Economic Growth (सबको गरिमापूर्ण काम मिले, आर्थिक वृद्धि हो।)
➢ (SDG 9) Industry, Innovation, and Infrastructure (उद्योग नवाचार और बुनियादी अवसं रचना।)
➢ by 2047 make India developed nation. (भारत को विकसित राष्ट्र बनाना)

47.3 🖱🛒 SERVICE SECTOR → E-C OMMERCE (ई वाणिज्य / ऑनलाइन बिक्री)

• Indian e-commerce industry is expected to cross USD 350 billion by 2030.
• Refer to Prelims Handout, it contains enough points. We’ll learn only one TOPIC- ONDC
47.4 ONDC- A GAME CHANGER FOR BOTH BUYERS AND SELLERS

(Define) Open Network for Digital Commerce (ONDC): is a digital platform to connect buyers and
sellers. (खरीदारों/ग्राहक और विक्रे ताओं को जोड़ने के लिए डिजिटल प्लेटफॉर्म/मंच)
 It is operated by a not-for-profit company of commerce ministry’s DPIIT department, founded
in 2022.

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 Similar to UPI, it is free/ low cost, open source technology.
 Reduces transaction costs, making it more affordable for buyers and sellers to conduct business
online compared to traditional online platforms, such as Amazon, Swiggy Zomato Flipkart Ola
Uber. (लेन-देन लागत कम कर देता है)
 Aims to create a more inclusive, accessible e-Commerce landscape for all consumers and sellers.
(अधिक समावेशी, सुलभ ई-कॉमर्स परिदृश्य)

 it will help ending the duopoly of Amazon-Flipkart; Ola-Uber; Swiggy-Zomato.

 ONDC is product agnostic (i.e. anything can be bought and sold. Presently Amazon App itself
can’t book restaurant-food or taxi, u need to install another App Swiggy/Ola.) (उत्पाद अज्ञेयवादी)

 Particularly beneficial for small businesses, giving them more freedom in making business
decisions (compared to certain ruthless terms & conditions imposed by e-commerce giants on
small.) (अमेजॉन फ्लिपकार्ट आदि छोटे विक्रे ताओं पर काफी कड़े शर्त कानून लगाते हैं उसके मुकाबले यह ज्यादा लोकतांत्रिक होगा)
 Gives consumers more freedom of choice by letting them use any compatible application or
platform to discover products (ग्राहकों को उत्पादों को खोजने के लिए की अधिक स्वतंत्रता मिलती है)
 following is a comparison:
Swiggy / Zomato app ONDC
Platform Fees charged by App on sellers 25–30%-40% 2–4–10% depending on product.
Example Price of McDonald Burger ₹250 ₹200

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 It is evident that seller (McDonald) increases the price while selling on swiggy/Zomato, To keep
the profit margin same
 Ultimately, customer has to pay more on Swiggy/Zomato. (क्योंकि निजी ई-कॉमर्स कं पनियां ज्यादा फीस मांगती
है इसलिए विक्रे ता खुद ही वस्तु का भाव बढ़ा देता है अपना मुनाफा बरकरार रखने के लिए)
 Then due to expensive price, some customer may not even place the order OR place low-quantity
order → then even the seller will suffer.(माल उसका बिके गा नहीं, ग्राहक बिना ख़रीदे /कम जत्थे में ख़रीदे चला गया। )
✍️Conclusion: Thus, ONGC will help in a long way in democratising the e-commerce sector in India
and a win-win for both small traders and ordinary consumers. (इस प्रकार, ओएनजीसी भारत में ई-कॉमर्स क्षेत्र को
लोकतांत्रिक बनाने और छोटे व्यापारियों और आम उपभोक्ताओं दोनों के लिए फायदे का सौदा साबित होगी।)
47.5 👨🏻‍⚖️ S ERVICE SECTOR: CCI VS MNC (PYQ-GSM2–2023, 150 WORDS)
Q. Discuss the role of the Competition Commission of India in containing the abuse of dominant
position by the Multi-National Corporations in India. Refer to the recent decisions. (भारत में बहुराष्ट्रीय
निगमों के द्वारा प्रभावशाली स्थिति के दुरुपयोग को रोकने में भारत के प्रतिस्पर्धा आयोग की भूमिका पर चर्चा कीजिए। हाल के निर्णयों
का सं दर्भ लें । )
47.5.1 👨🏻‍⚖️
Intro to CCI
➢ (Correction) Competition Commission of India (CCI) is a statutory body under the
Competition Act, 2002. भारतीय प्रतिस्पर्धा आयोग एक वैधानिक सं स्था है।
➢ CCI functions within the Ministry of Corporate Affairs. कॉरपोरेट मामलों के मं त्रालय के अधीन
➢ It is responsible for ensuring fair competition and preventing monopoly and cartelization.
निष्पक्ष स्पर्धा को बढ़ोतरी देना, एकाधिकार को रोकना।
➢ The following are notable examples of how CCI has addressed the abuse of dominant
position by Multi-National Corporations (MNC) in India.
47.5.2 👨🏻‍⚖️ CCI’s Famous judgements against MNCs
MNC CCI Ruling
CCI is investigating WhatsApp’s user privacy policy. Whatsapp puts its users in a
Whatsapp “take-it-or-leave-it” situation, essentially forcing them into an agreement and then
(2023) sharing their sensitive data with Facebook for targeted advertisements. (ग्राहकों से निजता की
नीतियो पे ज़बरन अनुमति लेना और फिर फ़े सबुक को बहुत सारी गुप्त जानकारी साझा करना।)
Google was forcing android mobile and smart TV manufacturers to preinstall the
Google Play Store, thereby preventing other players from running their own app
Google
installation stores. CCI imposed a fine of over ₹1,300 crore. (एं ड्रॉयड फ़ोन और TV बनाने वाली
(2022)
कं पनियों से ज़बरन अपना एप्स स्टोर इंस्टॉल करवाना। ताकि ग्राहक ने अनिवार्य रूप से एप्स उसी गूगल प्ले-स्टोर से
ख़रीदने पड़े।)
CCI fined Amazon because it engaged in anti-competitive behavior by favoring certain
Amazon sellers over others and entering into exclusive tie-ups with mobile phone
(2021) manufacturers. (कु छ ख़ास विक्रे ताओं को प्राधान्य देना और मोबाइल फ़ोन कं पनियों से ऐसे समझौते करना ताकि वे
के वल अमेजॉन की वेबसाइट भी अपना मोबाइल बेचे, अन्य ऑफ़लाइन दुकानों में न बेचे।)
Meta/FB 2024- CCI fined ₹ 213.14 crore on Meta because WhatsApp shared user data with

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 (2024) Facebook and Instagram without user-consent. Meta owns all 3 of these companies.
In the past, CCI has investigated Microsoft, MasterCard and visa and other giants for their unfair and
anti-competitive practises.
47.5.3 👨🏻‍⚖️ ✍️Conclusion: CCI vs MNC
➢ In the European Union, the regulatory bodies are very strict against the unfair practices by
tech giants and multinational corporations. Apple, Google, and Facebook were required to
either pay fines or change their unfair practices.
➢ In India, the CCI has also taken appreciable steps. This will help in a long way: a) to protect
the interests of ordinary consumers and 2) to ensure a level playing field between giant
companies and MSMEs, and 3) to prevent digital imperialism by MNCs. (भारतीय प्रतिस्पर्धा आयोग
ने काफ़ी प्रशं सनीय कार्य किया है इससे सामान्य ग्राहकों के हितों की रक्षा होगी बड़ी कं पनियों और छोटी कं पनियों के बीच एक साफ़
हो स्पर्धा होगी और बड़ी विदेशी कं पनियों के डिजिटल उपनिवेशीकरण पर रोक लगेगी।)
47.6 ECONOMIC SURVEY 2024 ON SERVICE SECTOR
47.6.1 📕ES24: Factors helping service sector demand
FACTOR Increased demand for these services
large and young
education, healthcare, finance, tourism, hospitality, and entertainment
population.
transportation, housing, sanitation, and utility services (water, sewage
Rapid urbanisation
etc)
logistics, digital payments services, influencers for marketing those
e-commerce platforms
products
47.6.2 📕ES24: FDI in services falls in 2024- bcoz of these reasons
Higher loan interest rates, geopolitical conflicts, heightened global uncertainties and rising
protectionism.
47.6.3 📕
ES24: Global Capability Centres (GCCs)
• (Definition:) GCC are units established by multinational corporations critical functions like
R&D, IT, and business process management (BPM) in locations different from their
headquarters.
• Functions: GCC deal with software, network-server maintenance, Market research, Finance
and accounting, customer complaints, etc.
• Indian IT-cities like Bengaluru, Hyderabad and Gurugram are preferred GCC-destinations
for MNCS like IBM, HSBC, Boeing, etc.
• GCC grown significantly in India from over 1,000 centres in FY15 to over 2,740 by FY23.
• Benefits: export income, job creation.
• Challenges: shortage of skilled workers, competition from East Asian nations, protectionism.
47.6.4 🤖 Will AI takeaway jobs from Indian IT/BPO? 📕ES24’s view
Ref: Pillar#6: Skill / unemployment.
47.6.5 👛
Budget-2024 on Mfg/Services/IPR
• Investment-ready “plug and play” industrial parks

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 • 12 industrial parks under the National Industrial Corridor Development
• E-Commerce Export Hubs will be set up in public- private-partnership (PPP) mode
• Rental housing with dormitory type accommodation for workers (मज़दूरों के लिए किराये के घर)
• Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended for voluntary
closure of LLPs (Limited liability partnership)
• We are working on the Jan Vishwas Bill 2.0 (to reform various laws to increase Ease of doing
business).
• Anusandhan National Research Fund with ₹1 lakh crore
47.7 📆N OTABLE YEARS / EVENTS
Make in India 2014
IPR Policy 2016
RERA Act 2016
4th industrial revolution 2018
Circular economy-NITI Paper 2019
New consumer protection act 2019
Assembled in India /PLI 2020
Four Labour Codes passed 2020
MSME Definitions Changed 2020
World Bank EoD report stopped 2020
Pvt Cos Not spending enough on R&D says Eco Survey. 2021
ONDC company registered 2022
47.8 MAINS QUESTIONS- HANDPICKED FROM ECONOMICS OPTIONAL
1) What is ‘Crony Capitalism?’ How it compromises economic and social justice? Explain. (2013)
2) Comment on the new initiatives taken by the government to facilitate investment and ease of
doing business. (2014)
3) Examine the impact of globalization on Indian industries. (2003) भारतीय उद्योगों पर वैश्वीकरण के प्रभाव की
जांच कीजिए।
4) Accelerated growth of tertiary sector during the past two decades in Indian economy has posed
multiple challenges. Discuss. (2013) भारतीय अर्थव्यवस्था में पिछले दो दशकों के दौरान तृतीयक क्षेत्र के त्वरित विकास ने
अनेक चुनौतियां खड़ी की हैं।
5) (MOCK) if service sector becomes main contributor to GDP, it is both a catalyst & impediment
for the achievement of SDG goals. Comment (यदि सेवा क्षेत्र सकल घरेलू उत्पाद में मुख्य योगदानकर्ता बन जाता है,
तो यह एसडीजी लक्ष्यों की प्राप्ति के लिए उत्प्रेरक और बाधा दोनों है। टिप्पणी)
6) While Indian economic growth in recent years is services-led growth and Chinese model is
manufacturing-led growth, show the implications of the two models for long-term sustainable
development (2015) हालांकि हाल के वर्षों में भारत की आर्थिक वृद्घि सेवा आधारित वृद्घि है और चीनी मॉडल विनिर्माण
आधारित वृद्घि है, जो दीर्घावधि सतत विकास के लिए दोनों मॉडलों के निहितार्थ को दर्शायीए

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47.9 ✍️🎺 M AINS QUESTIONS IN PREVIOUS GSM2 & GSM3
Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market 2024
reforms in India. What has been the progress so far in this regard? भारत में श्रम बाजार सुधारों के
सं दर्भ में, चार ‘श्रम सं हिताओं’ के गुण व दोषों की विवेचना कीजिए। इस सं बं ध में, अभी तक क्या प्रगति हुई है?
Discuss the role of the Competition Commission of India in containing the abuse of 2023
dominant position by the Multi-National Corporations in India. Refer to the recent
decisions. (भारत में बहुराष्ट्रीय निगमों के द्वारा प्रभावशाली स्थिति के दुरुपयोग को रोकने में भारत के प्रतिस्पर्धा आयोग की
भूमिका पर चर्चा कीजिए। हाल के निर्णयों का सं दर्भ लें । )
Faster economic growth requires increased share of the manufacturing sector in GDP, 2023
particularly of MSMEs. Comment on the present policies of the Government in this regard.
(जी० डी० पी० में विनिर्माण क्षेत्र विशेषकर एम० एस० एम० ई० की बढ़ी हुई हिस्सदारी तज आर्थिक सं वृद्धि के लिए आवश्यक
है। इस सं बं ध में सरकार की वर्तमान नीतियों पर टिप्पणी कीजिए।)
What is the status of digitalization in the Indian economy? Examine the problems faced in 2023
this regard and suggest improvements (भारतीय अर्थव्यवस्था में डिजिटिकरण की स्थिति क्या है? इस सं बं ध में
आने वाली समस्याओं का परीक्षण कीजिए और सुधार के लिए सुझाव दीजिए।)
"Success of 'Make in India' programme depends on the success of 'Skill India' programme 2015
and radical labour reforms." Discuss with logical arguments. कौशल भारत की सफलता और श्रम
कानून में सुधार के बिना 'मेक इन इंडिया' सफल नहीं हो सकता - तार्किक रूप से समझाइए
Normally countries shift from agriculture to industry and then later to services, but India 2014
shifted directly from agriculture to services. What are the reasons for the huge growth of
services vis-a-vis industry in the country? Can India become a developed country without
a strong industrial base? क्या भारत एक मजबूत औद्योगिक क्षेत्र के बिना एक विकसित देश बन सकता है?
Examine the impact of liberalization on companies owned by Indian. Are the competing 2013
with the MNCs satisfactorily? क्या उदारीकरण के बाद भारतीय कं पनियां बहुराष्ट्रीय निगमों से स्पर्धा कर पा रहे हैं?
Has the Indian governmental system responded adequately to the demands of 2016
Liberalization, Privatization and Globalization started in 1991? Suggest reforms? एलपीजी
सुधार के अनुसं धान में सरकार ने और क्या-क्या करना चाहिए?
47.9.1 ✍️🎺 Mock Questions for Mains
(1) Discuss the significance of minimum wages in reaping India’s demographic dividend. जनसांख्यिकी
लाभांश के लिए न्यूनतम वेतन का महत्व
(2) Examine critically the problems in the present system of minimum wages in India & suggest
remedies. का वर्तमान न्यूनतम वेतन व्यवस्था में क्या समस्याएं हैं?
(3) Despite India’s outstanding growth in the last two decades, low pay and wage inequality remain
serious obstacles towards achieving inclusive growth. Suggest remedies to address this problem /
OR How does the Code on Wages 2019 address this? वेतन सं हिता भारत में समावेशी विकास में कै से मदद कर
सकती हैं?
(4) “Job creation in India suffers from policies that discourage small firms from growing large.”
Suggest remedial steps through which MSMEs’ efficacy in job creation and GDP growth rate can
be augmented further. भारत में छोटे उद्योग को बड़ा होने में हतोत्साहित करने वाली नीतियों के चलते रोजगार सृजन नहीं हो पा
रहा. इसके लिए सुझाव दीजिए

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(5) “Pro-crony policies result in destruction of wealth whereas pro-business policies help in creation
of wealth.” Comment पक्षपाती पूंजीवाद वाली नीतियों से राष्ट्रीय धन की तबाही जबकि व्यापार वादी नीतियों से धन निर्माण मैं
मदद हो सकती है टिप्पणी कीजिए
(6) “There is a need for saving capitalism from the crony capitalists”. Discuss in context of India’s
ambition to achieve developed nation status by 2047. (भारत के विकसित देश बनने के लक्ष्य के सं दर्भ में
“पूँजीवाद को बदमाश पूंजीपतियों से बचाने की जरूरत है”- इस वाक्य की चर्चा कीजिए) 💡Bonus Tip: U can also add
some case studies from 1C- Corporate governance.
(7) Examine critically the factors responsible for the uneven growth of Startup firms across various
regions of India. भारत के विभिन्न प्रादेशिक क्षेत्रों में स्टार्टअप की असमान वृद्धि के कारकों की समीक्षा कीजिए
(8) Enumerate the steps taken under Atma-Nirbhar to revive the MSME sector in India, in the
aftermath of corona crisis. एमएसएमई उद्योगों को पुनर्जीवित करने के लिए आत्म निर्भर भारत अभियान में उठाए गए क़दमों
की सूची दीजिए
(9) Examine the opportunities and challenges in India becoming pharmacy of the world. (भारत तो विश्व
का औषधालय बनाने के लिए उपलब्ध अवसरों और चुनौतियों की जांच करें )
(10) While India has become a “knowledge based economy” it is yet to become a thriving “hub of
research and development”. Examine Critically. (हालाँकि भारत एक "ज्ञान आधारित अर्थव्यवस्था" बन गया है, यह
अभी तक "अनुसं धान और विकास का एक सम्पन्न कें द्र" बनना बाकी है। गम्भीर रूप से समीक्षा कीजिए।
(11) Indian administration suffers from over regulation. Explain how a Transparency of Rules
Act (TORA) can help improving ease of doing business in India? (भारतीय प्रशासन को अति-नियमन से ग्रस्त
है । समझाइए कि कै से नियमों की पारदर्शिता अधिनियम (TORA) भारत में व्यापार करने में आसानी में सुधार में मदद कर सकता
है?) Ans. Read this article
47.9.2 ✍️🎺
Mock Questions for Mains → Post Independence: PM Rao (2020)
(12) (GS1) Evaluate PM Rao as one of the makers/architects of modern India. (आधुनिक भारत के
निर्माता/रचयिता के रूप में प्रधानमं त्री नरसिम्हा राव का मूल्यांकन)
(13) (GS3) “Legacy Rao’s reforms is an Indian economy where GROWTH has priority over
Redistribution.” Examine critically. नरसिम्हा राव की आर्थिक सुधारों की विरासत - ऐसी अर्थव्यवस्था है जहां पर (अमीरों
की) आर्थिक वृद्धि को (गरीबों में उसके ) पुनर्वितरण से ज्यादा वरीयता मिली है" समीक्षा कीजिए
(14) (GS4) “Though written in ancient times, Kautilya’s treaties are effective for modern day
crisis management.” Elucidate with an example of a modern leader/reformer. (हालांकि कौटिल्य के
सिद्धांत प्राचीन समय में लिखे गए थे किं तु आधुनिक समय में भी सं कट प्रबं धन में भी उतने ही प्रभावी हैं. किसी आधुनिक नेता/सुधारक
के उदाहरण के साथ विस्तृत रूप से समझाइए).
(15) ✅ Model Ans to PM RAO:= https://youtube.com/c/TheMrunalPatel → in search box type "RAO".
📑Next Handouts: 4CDE: NITI-PC, FYP, Macro-indicators: unemployment, GDP, inflation,
WPI, CPI, IIP etc.

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 👳🏻🧔 PILLAR#4C: P LANNING, NITI AAYOG, UNEMPLOYMENT
Table of Contents
40 👳🏻🧔 Economic Planning & Economic Systems............................................................................435
40.1 Mixed Economy Model................................................................................................................435
40.1.1 Why did India adopt a mixed economic model?..................................................................................................436
40.2 Capitalism not good for inclusive growth?..................................................................................436
40.2.1 Capitalism- negative outcomes – recent examples...............................................................................................438
40.2.2 Anarcho-Capitalism in Argentina..........................................................................................................................438
40.3 👳🏻🧔 Economic Planning: आर्थि क योजना......................................................................................438
40.4 👳🏻📚 Planning Commission → Five Year plans........................................................................439
40.5 Planning- Gandhi vs Nehru........................................................................................................ 439
40.5.1 Which one is better for present India ( वर्तमान समय में कौन उचित?).........................................................................440
40.6 Planning: Nehru vs Modi – self-reliance vs Atma-Nirbhar........................................................440
40.7 Planning commission failed – why? (योजना आयोग असफल क्यों रहा?)...........................................441
40.8 👳🏻🧔 Planning Commission vs Niti Aayog: Structure................................................................443
40.9 NITI Aayog : functions are different than Planning Commission- How?..................................443
41 🧔🏻🧑‍🦲 Governance Units: States and Districts................................................................................444
41.1 🧔🏻🧑‍🦲 Admin Units: New States and economic growth...............................................................444
41.1.1 Major problem of the newly formed states: (नव-निर्मित राज्यों की मुख्य समस्या।).......................................................445
✍️
41.1.2 Conclusion:..........................................................................................................................................................446
41.2 Aspirational Districts (आकांक्षी ज़िले)...........................................................................................446
41.2.1 Aspirational Districts → competition (प्रतिस्पर्धा)...................................................................................................446
41.2.2 Convergence thru officers (अधिकारियों के चलते अभिसरण)..........................................................................................447

41.2.3 Convergence in schemes (योजनाओं में अभिसरण).......................................................................................................447

41.2.4 Collaboration (सहयोग)..............................................................................................................................................447
41.2.5 Copying of Best Practices (अन्य जिलों की उत्कृ ष्ट प्रणालियों की नकल करने के अवसर)........................................................447
✍️
41.2.6 Conclusion: Aspirational Districts – end on +VE note..................................................................................448
42 GSM2- Policy Design / Stakeholder / Awareness...........................................................................449
42.1 multi-level planning ( बहु-स्तरी योजनाकरण)..................................................................................449
42.1.1 Neoliberalism- Define (नव-उदारीकरण).....................................................................................................................449
42.1.2 Neoliberalism- Origin in India (नव-उदारतावाद का भारत में प्रारंभ/ शुरुआत।)..............................................................450
42.1.3 Multi level planning in India (MLP) – Mechanism ( बहु-स्तरी योजनाकरण)............................................................450
42.1.4 MLP Challenges: Combative federalism (झगड़ालू संघवाद)......................................................................................450
42.1.5 MLP: case of skill development...............................................................................................................................451
42.1.6 ✍️ Conclusion: Multi Level Planning ( बहु स्तरीय आयोजन के बारे में निष्कर्ष).............................................................452

42.2 👨‍💻🤝🧔🏻 Service Sector cooperation for development?................................................................453

42.2.1 👨‍💻🤝🧔🏻 Introduction...............................................................................................................................................453
42.2.2 👨‍💻🤝🧔🏻 Service sector partnership: what has been done? ( अब तक क्या हो चुका है )................................................453
42.2.3 👨‍💻🤝🧔🏻 Service sector partnership: what can be done- Finance & Education? ( क्या होना चाहिए ).....................453

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 42.2.4 👨‍💻🤝🧔🏻 Service Sector partnership for future: Health ( )..................................................454
स्वास्थ्य क्षेत्र में भागीदारी।

42.2.5 👨‍💻🤝🧔🏻 Conclusion: yes it can help ( ).................................................................................454

हाँ ये सब करना ज़रूरी है।
42.2.6 👨‍💻🤝🧔🏻 Mistakes......................................................................................................................................................454
42.3 GSM1 →Govt NGO private sector coop. 10m.............................................................................454
42.3.1 Examples of Cooperation.........................................................................................................................................454
42.3.2 Cooperation is NOT EFFECTIVE WHEN:...........................................................................................................455
42.3.3 Conclusion: For an effective partnership,..............................................................................................................455
42.3.4 MISTAKEs.................................................................................................................................................................456
42.4 🙋‍♂️🤝🦁 People participation in welfare scheme (योजनाओं में लोग भागीदारी।)...............................456
42.4.1 🙋‍♂️🤝🦁 Introduction to welfare schemes..............................................................................................................456
42.4.2 🙋‍♂️🤝🦁 PPL Awareness- Case study of a generic medicine scheme..................................................................457
42.4.3 🙋‍♂️🤝🦁 PPL-Awareness- immunisation programs ( )............................................................................457
टीकाकरण

42.4.4 🙋‍♂️🤝🦁 PPL Involvement- Micro-irrigation sprinklers ( - ).................................................................457

सूक्ष्म सिंचाई
42.4.5 🙋‍♂️🤝🦁 PPL Involvement- LPG scheme...............................................................................................................457
42.4.6 🙋‍♂️🤝🦁 PPL-Participation: subsidized meal for workers....................................................................................458
42.4.7 🙋‍♂️🤝🦁 PPL participation: more Points................................................................................................................458
42.4.8 🙋‍♂️🤝🦁 Conclusion - scheme participation ( )............................................................................................458
निष्कर्ष
42.4.9 🙋‍♂️🤝🦁 Mistakes in scheme participation ans......................................................................................................459
42.5 Participation: Donor agencies need to consult with local public................................................459
42.5.1 World Bank Western Ghat project.........................................................................................................................459
42.5.2 UNICEF WASH Initiative.......................................................................................................................................460
42.5.3 Polio campaign failure in Pakistan and Afghanistan ( पोलियो टीकाकरण)...............................................................460
42.5.4 Akshaya Patra Foundation mid day meal Dalit Cook..........................................................................................460
42.5.5 CSR quick fix/bandaid solutions (सीएसआर के जुगाड़ू/मरहम-पट्टी उपायों से क़ायमी इलाज नहीं)......................................460
✍️
42.5.6 Conclusion: Donor agencies need to consult with local public .....................................................................461
42.6 👳‍♂️🤕 ES19: GDP growth harmed during Economic Policy Uncertainty....................................461
42.6.1 📔📔 ES19: How to reduce Economic Policy Uncertainty..................................................................................462
42.6.1.1 Make Policies predictable (पूर्वानुमान करने योग्य)...............................................................................................462
42.6.1.2 Keep consistency in promises (वादों में सामंजस्य / निरंतरता रखिये)....................................................................462
42.6.1.3 Policy implementations must be monitored ( अविरल निगरानी).....................................................................462
42.6.1.4 Respect boundaries (एक दूसरे की सीमाओं का सम्मान कीजिए)................................................................................463
✍🏻
42.6.2 Conclusion: Policy Uncertainty........................................................................................................................463
43 Macro Indicators → Unemployment (बेरोज़गारी)......................................................................463
43.1.1 📕ES24: DATA-Unemployment data....................................................................................................................463
43.1.2 📕ES24: DATA-Sectoral composition...................................................................................................................464
43.1.3 👷🏻‍♂️📈 India Employment Report 2024...................................................................................................................464
43.1.4 🙍‍♂️ Unemployment Major Reasons: ( ).................................................................................465
बेरोजगारी के प्रमुख कारण
43.1.5 📕ES24: Demographic TIME-bomb is ticking. Need 78.5 lakh jobs per year...................................................465
43.2 Job Creation how to do? (रोज़गार सृजन कै से करें?)..........................................................................466
43.2.1 👛Budget-2024: EPFO -ELI (employment linked incentive scheme)................................................................467
43.3 📕🥤 ES24-Job creation in Food processing................................................................................467
43.3.1 📕🥤 Job creation in Food processing with bottom-up approach......................................................................467
43.3.2 📕🧑🏻‍🦽‍➡️ ES24: Jobs creation in care economy ( )............................................................................467
देखभाल अर्थव्यवस्था

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 43.3.3 📕ES24: overtime & work hrs discourage MNCS in India..................................................................................468
43.3.4 📕 ♨️ ES24: worker productivity- Global warming harming..............................................................................468
43.4 🛵 Underemployment vs Unemployment?................................................................................468
🛵
43.4.1 Underemployment refers to ...............................................................................................................................468
43.4.2 Underemployment : negative impact.....................................................................................................................468
43.4.2.1 On economy: (अर्थतंत्र पर नकारात्मक असर)..........................................................................................................468
43.4.3 On family & society: (परिवार और समाज पर नकारात्मक असर)......................................................................................469
43.4.4 Underemployment : Reasons & Remedies (अल्प रोज़गार के कारण और उपाय।).........................................................469

43.5 structural unemployment & data collection methodology.........................................................470

43.5.1 Intro............................................................................................................................................................................470
43.5.2 Body- present system of unemployment calc........................................................................................................470
43.5.3 Body: Reform in questionnaire- by ILO (प्रश्नावली में सुधार किए जाए।).....................................................................470
43.5.4 Body: Reform in methodology- women LFPR (महिलाओं का श्रम बल भागीदारी दर।)................................................470
43.5.5 Body: timely release and publication (समयसर/ नियत समय पर प्रकाशन हो।)..............................................................470
43.5.6 Body: implement committee report (समितियों की रिपोर्ट पर अमल हो।)......................................................................471
✍️
43.5.7 Conclusion: yes need to do it.............................................................................................................................471
43.6 👷‍FEMALE LFPR: Labour force participation rate (महिला श्रम-बल भागीदारी दर).........................471
43.6.1 📕👷🏻‍♀️✋ ES24: Job barriers on women by State govts...........................................................................................472
43.7 Gig Economy impact on Women workers...................................................................................472
43.7.1 Patriarchal opposition: (पितृ सत्तात्मक विरोध।)...........................................................................................................473
43.7.2 Conclusion – women gig-workers..........................................................................................................................474
43.7.3 👷‍🍕🏍 NITI Report on Gig Workers...................................................................................................................474
43.7.4 📕🍕 ES24: Gig economy DATA............................................................................................................................474
43.7.5 📕🍕 ES24: Gig workers: 1st world vs 3rd world..................................................................................................474
43.7.6 📕🍕 ES24: Gig-Economy benefits of ( फ़ायदे)........................................................................................................475

43.8 🗺️ Labour migration Trend........................................................................................................475

43.8.1 🗺️ Labour migration outside India.........................................................................................................................475
43.8.2 🗺️ Labour migration within India ( - / ).....................................................476
भारत के भीतर श्रमिकों आगम निर्गम का रुख़ ट्रेंड

43.8.3 🗺️ Migration: Language no longer a barrier ( ,).....................................................................476

भाषा कोई बाधा नही है
43.8.4 🗺️ Challenges faced by migrant workers in India................................................................................................476
43.8.5 🗺️✍️ Conclusion: migration inevitable, so, ensure worker well-being ..............................................................476
44 📕🤖 ES24: Will AI destroy the jobs?.............................................................................................477
44.1.1 📕🤖 ES24: Historical Examples of Technology vs Jobs......................................................................................477
44.1.2 📕🤖 ES24: Will AI take away the jobs?.................................................................................................................478
44.1.3 📕🤖 ES24: Future of Indian jobs ( )......................................................................478
कृ त्रिम बुद्धिमत्ता से भारत को चुनौती
44.1.4 ✍️🤖 Conclusion: AI will takeaway jobs?..............................................................................................................479
44.2 ⁉️✍🏻Mock Questions for Mains..................................................................................................480
44.2.1 ⁉️ ✍🏻 PYQ-Economics Optional & Indian Econ.Service....................................................................................480
44.2.2 ⁉️✍🏻 PYQ-GSM....................................................................................................................................................... 480
44.2.3 ⁉️✍🏻 Mock Question...............................................................................................................................................481

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40 👳🏻🧔 E CONOMIC PLANNING & ECONOMIC SYSTEMS

40.1 MIXED ECONOMY MODEL

- (Definition:) A mixed economic model refers to an economic system that incorporates elements
of both capitalism (private sector-driven) and socialism (government intervention). (जहाँ समाजवाद
और पूं जीवाद दोनों के तत्वों का मिश्रण देखा जाता है उसे मिस्र अर्थतंत्र कहते हैं)

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- (Origin) 1948: India adopted a mixed economic model in its Industrial Policy Resolution (1948).
This resolution laid out the government's plans for the economy - namely mix of public and
private ownership, central planning etc. (आज़ादी के बाद भारत ने इसको अपनाएं )
- Over the years, this mixed economic model has seen transformation from leaning more towards
the socialist side in Nehruvian-era to leaning more towards the capitalist side post-1991 LPG
Reforms. (हालाँकि धीरे धीरे समाजवाद से अलग होकर पूंजीवाद की तरफ़ झुकाव बढ़ रहा है।)
40.1.1 Why did India adopt a mixed economic model?
आर्थिक व गैर आर्थिक कारणों के चलते भारत ने मिश्रित आर्थिक मॉडल अपनाया.

Economic Reasons Non-Economic Reasons

 Private sector required for efficient output.  Social Justice, worker welfare, idea of
Without private sector, it was difficult to equality and equal distribution of
grow the GDP and create jobs. opportunities = difficult in capitalism
 At the same time private sector could not because capitalism results in concentration
be trusted for delivering all the goods at of wealth. So government had to reserve
affordable prices e.g. healthcare, medicine, some sectors for small scale industries.
electricity, telephone service, railways etc.  Capitalism = Bad memories of East India
so existence of government owned company, colonisation and exploitation of
companies was essential. the poor. We wanted to become sovereign
 Could not adopt 100% socialism but and self-reliant.
immediately after independence,  If PM-Nehru adopted either full-capitalism
government did not have enough fiscal / tax or full-socialism, It would have alienated
resources / manpower to run the entire either the industrialists or the workers
economy. And it was difficult to raise large unions depending on the choice. But we
quantity of loans from foreign sources- required national unity from both the sides
because the global economy was also immediately after independence.
devastated after second world war.  Similarly, it would have angered either USA
 Could not adopt 100% capitalism because or USSR depending on our choice → we
otherwise India could witness great needed support/non-alignment from both
depression like USA (1929), IF private sides for strategic reasons.
sector was given full freedom.  Fears that Capitalism / full FDI etc. may
result in CIA funded entities Destabilising
the government.
✍️ Conclusion: Preamble wanted Economic Justice. Socialism can’t deliver it. (Because socialism
does not allow private ownership). Preamble wanted Social Justice. Capitalism can’t deliver it
(Because capitalism believes in minimum government control and Full freedom to market forces.)
So India had made a right decision by adopting mixed model after Independence. (समाजवाद आर्थिक न्याय
नहीं दे सकता पूंजीवाद सामाजिक न्याय नहीं दे सकता इसलिए भारत ने मिश्रित मॉडल अपनाकर उचित क़दम उठाया है।)

40.2 CAPITALISM NOT GOOD FOR INCLUSIVE GROWTH?

क्या पूंजीवाद से समावेशी विकास सं भव/मुमकिन नहीं है?

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40.2.1 Capitalism- negative outcomes – recent examples
 Pharmaceutical companies spending more money on research & development of cancer,
diabetes and blood pressure drugs compared to other infectious disease & antibiotics because of
profitability angle. This is aggravating the problem of antimicrobial resistance because lack of
sufficient research on new antibiotics. (alleged Downtoearth Magazine) [औषधि कं पनियों की कैं सर
मधुप्रमेह रक्तदाब आदि की दवाइयों पर ज़्यादा रिसर्च करते हैं पैसा लगाते हैं क्योंकि उसमें मुनाफ़े के अवसर ज़्यादा है उसकी बनाम
एं टीबायोटिक दवाइयों पर वेतन सं शोधन करते हैं क्योंकि वहाँ मुनाफ़े का अवकाश कम है।]
 E-learning companies sponsoring biased research to show that smart phones have no negative
impact on children. said UNESCO- while advocating ban on smartphones in school. (स्मार्टफ़ोन के
उपयोग से पढ़ाई पर कोई भी नकारात्मक असर नहीं होता ऐसी पूर्वाग्रह युक्त रिसर्च प्रकाशित करने के लिए ई लर्निंग कं पनियां सांसदों
को पैसा दे रही।)
 Start up companies and tech giants overestimated their business potential during the Corona
lockdown and took heavy investments from Venture Capitalists. Now under the pressure of
venture capitalist to become profitable. These companies doing massive layoffs of workers and
engaging in unethical practices such as account book manipulation. some startups struggling to
repay loans (e.g Byjus), and filed bankruptcy e.g. Wework (USA) (कोरोना के दौरान स्टार्टअप कं पनियों ने
अपने वृद्धि दर का ज़रूरत से ज़्यादा अनुमान /अहंकार कर लिया, किन्तु वास्तव में उनका बिज़नेस मॉडल आजीवन के लिए वहनीय नहीं
था, इसलिए अब युद्ध स्तर पर लोगों को नौकरी से हटाया जा रहा है, लोन चुकाने में भी इन स्टार्टअप कं पनियों को दिक़्क़त परेशानी हो
रही है।)

40.2.2 Anarcho-Capitalism in Argentina

Refer to Prelims Handout. Anarcho-capitalism = even police and judicial work by pvt companies.

40.3 👳🏻🧔 E CONOMIC PLANNING: आर्थिक योजना

Definition? It is the process through which Govt. prepares a list of socio-economic problems e.g.
mass poverty, inequality, low productivity in agriculture, lack of industrial and infrastructural
development etc.; and then Govt. sets goals / targets / plans to fix these problems. (यह प्रक्रिया है जिसके

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माध्यम से सरकार सामाजिक-आर्थिक समस्याओं की सूची तैयार करता है उदा। बड़े पैमाने पर गरीबी, असमानता, कृ षि में कम उत्पादकता,
औद्योगिक और बुनियादी ढांचागत विकास की कमी आदि; और उसे ठीक करने के लिए लक्ष्य / लक्ष्य / योजना निर्धारित करती है.)

40.4 👳🏻📚 P LANNING COMMISSION → FIVE YEAR PLANS

40.5 PLANNING- GANDHI VS NEHRU

(Origin) both Gandhi-ji and PM Nehru fought together for India’s independence, but their
economic visions had differences- as follows:

Leader Gandhi-ji PM Nehru

Centralised No. Decentralise village level Centralized five-year plans. License
economic planning (ग्रामीण स्तर पे विकें द्रीकृ त तरीक़े quota inspector raj. (के न्द्रीयकृ त पंच वर्षीय
planning से आर्थिक आयोजन) योजना)
Focus on No. Against industries and Yes. Especially second five-year plan
industries and machines- in Hind Swaraj Book. Mahalanobis model. However private
machines? (मशीन और उद्योगों का सं पूर्ण रूप से विरोध।) industries also allowed. Mixed economic

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 Leader Gandhi-ji PM Nehru
model. (द्वितीय पंचवर्षीय योजना से औद्योगीकरण
और ज़ोर दिया गया।)
Self sufficiency / At village level- through reducing At national level thru import
Atma-Nirbhar the wants, respecting nature. substitution (राष्ट्रीय स्तर पर स्व-निर्भरता। आयात
(ग्रामीण स्तर पर स्वाद निर्भरता अपनी ज़रूरतों को कम करेंगे।)
को कम करेंगे। प्रकृ ति का सम्मान करेंगे।)
Use natural Reduce your needs and wants. Yes, use mineral wealth, Basic goods
resources? (अपनी ज़रूरतों और इच्छाओ पे कमी करो industries heavy industries, coal, steel,
और प्राकृ तिक सं साधनों को बचाओ।) power, etc. (प्राकृ तिक सं साधनों का दे धना-धन
उपयोग करो।)
Companies? Trusteeship/cooperative society Public sector companies. (सार्वजनिक क्षेत्र की
(सहकारी सोसाइटी बनाओ। कं पनी नहीं बना) कं पनियां बनाओ।)
40.5.1 Which one is better for present India (वर्तमान समय में कौन उचित?)
 SDG ke liye Gandhian values of reducing our needs and wants, reducing inequality through
promotion of village SHG etc. Moral degradation of society through mindless consumerism and
lavish lifestyle. (अंधाधुंध उपभोक्तावाद के चलते समाज का नैतिक आधार पतन हो रहा है। अपनी ज़रूरतों को कम करना है
प्राकृ तिक सं साधनों को बचाना है तो इसके लिए गांधी मूल्य ज़्यादा उचित है)
 However this alone cannot sustain a large populations aspirations for jobs and country's
aspirations to be an economic and military superpower. (किं तु एक आर्थिक और सैन्य महासत्ता बनने के लिए
और इतनी विशाल आबादी को रोज़गार देने के लिए, हम गांधीजी के ग्रामीण-आयोजन मॉडल पे नहीं चल सकते।)
 Economic growth Ke Liye Nehru vision not suitable at present - given the inefficiency of public
sector undertakings and license quota inspector raj and centralised five-year plans- which
resulted into BoP crisis in 1991. (हालाँकि की नहेरु का समाजवादी मॉडल भी आज के ज़माने में उपयुक्त नहीं, क्योंकि
उसमें सार्वजनिक क्षेत्र को वरीयता देना, कें द्रीय स्तर पर पंचवर्षीय योजना बनाना, और लाइसेंस राज चलाना है - ये नहेरु-विचार असल
में आर्थिक वृद्धि में अवरोध पैदा करते है, और इसी चक्कर में भुगतान सं तुलन का सं कट १९९१ में आया था।)
40.6 PLANNING: NEHRU VS MODI – SELF-RELIANCE VS ATMA-NIRBHAR
(Origin) after independence, Prime Minister Nehru had advocated ‘self-reliance’ to prevent the re-
colonisation by foreign companies. Whereas, Prime Minister Modi launched Atma-Nirbhar
initiative to revive Indian economy after Corona (2020). Their ideas were similar and different in
following ways:

Ideas of PM → 👴Nehru 🧔Modi

Self-reliance through Yes. (सार्वजनिक क्षेत्र के उपक्रमों No. His plan is to privatize most of the
Central Public Sector द्वारा स्वनिर्भर बनने की कोशिश) CPSEs. (सार्वजनिक क्षेत्र के उपक्रमों का निजीकरण
Enterprises (CPSEs). करेंगे)
Self-Reliance through No. Capitalism was seen Yes, Capitalism, PPP is embraced with
helping the private with suspicion and open arms. Focus on Ease of doing
sector: controlled through License business. (पूंजीवाद को शक/घृणा से नही देखते बल्कि
निजी क्षेत्र को मदद करके Quota Inspector raj. गले लगाते हैं)
आत्मनिर्भरता

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 Ideas of PM → 👴Nehru 🧔Modi
Self-reliance through Yes, ban/high taxes on Limited extend. (के वल मर्यादित रूप से)
protectionism imported goods Import ban on selected defense items
आयात पर सं रक्षणवाद? आयात होने वाली चीजों पर बहुत ऊं ची Global companies can’t apply for tenders
मात्रा में कर below “X” amount.
Besides, due to WTO agreements, we
can’t completely ban the entry of foreign
goods.
Self-reliance through Yes. Focus on SHGs. More Limited extend.
village-cottage ‘collective’ in nature. More Focus on giving credit guarantee/
industries सामूहिकता पर ज़ोर दिया गया loans given to MSME / individual
ग्रामीण कु टीर उद्योग को कितना entrepreneurs /street-vendors/
प्रोत्साहन दिया गया? Startups/homebuyers.
+ Jobs for MGNREGA workers
Here, hardly 1-2 points for SHG in
ATMANI== Modi’s entrepreneurship
vision is more individualistic in nature.
(व्यक्तिपरकता)
✍️👴🧔 Conclusion: Self Reliance: Nehru vs Modi
 Both PMs ideas on self-reliance shaped by the needs and aspirations of their respective era.
 Unlike Nehru, Modi can’t be expected to be more ‘protectionist’ due to WTO & global pressure.
 Unlike Modi, Nehru could be expected to be more Pro-business/Pro-Capitalist, due to
immediate negative experience of British Imperialism & East India Company.
 Nonetheless, both PMs played instrumental roles in shaping the economic vision of India during
their tenure.(मोदी ज्यादा सं रक्षणवादी बन नहीं सकते, ना ही नेहरु ज्यादा पूंजीवादी बन सकते थे. दोनों ही अपने समयकाल के
कारकों से बं धे हुए थे, लेकिन दोनों ही ने अपने समय के भारत की आर्थिक सं कल्पना को आकार देने में महत्वपूर्ण योगदान दिया है।)
40.7 PLANNING COMMISSION FAILED – WHY? (योजना आयोग असफल क्यों रहा?)

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1) India achieved ~9% GDP growth-rate during 2005-07, thanks to American boom prior to
Subprime crisis. But almost all nations including Pakistan had experienced high growth in that
era. So 9% GDP did not come from PC’s magic wand. (अमेरिकी मं दी से पहले सभी देशों में आर्थिक वृद्धि हुई थी.
ये कोई योजना आयोग की जादू की छड़ी नहीं थी. पाकिस्तान में भी आर्थिक वृद्धि हुई थी उस ज़माने)
2) Post-Subprime crisis: GDP-fell while food-inflation &NPA rose during 2008-13. PC couldn’t fix
it. सब-प्राइम सं कट पश्वात विकास दर बढ़ा नहीं पाया, महंगाई कम नहीं कर पाया.
3) PC was a toothless body, couldn’t punish any government organizations if targets failed.
4) Failed to implement land reforms, labour laws. भूमि-सुधार और श्रम-कानून सुधार मे विफल
5) PC designed Government schemes with ‘One Size Fits’ all approach and a few extra crores to
NE/J&K/Hill-states and LWE-affected states. But for long, PC did not use pilot projects / sample
testing / interaction with states. So, Indira Awas Yojana (IAY), ICDS-child development scheme
etc. programs failed to show tangible result despite pumping crores of rupees over the decades.
दशको तक करोड़ो रुपए देने के बाद भी कश्मीर, नक्सल प्रभावित राज्यो और पूर्वोत्तर राज्यो मे कोई ठोस सुधार नही देखने मिलते
6) PC tried to bypass State Govts by designing schemes that directly funded ₹ ₹ to NGO & private
agencies. So, non-Congress states became unenthusiastic about implementing Central Schemes.
(राज्य सरकारों को नज़रअंदाज़ कर योजना आयोग सीधा ही निजी क्षेत्र के समाजसेवी सं गठनों को पैसा देता इसलिए राज्य सरकारें
कें द्रीय योजना अपने इलाक़े में चलाने के बारे में ज़्यादा उत्साहित नहीं रहती थी)

7) Only in 2013, PC attempted to undo its mistakes by reducing number of Centrally sponsored
schemes (CSS), Performance based funding to States etc. But it was too little, too late.
8) PC’s shortcomings resulted in creation of new bodies like PM’s Project Monitoring Group, PM’s
Economic Advisory Council (PM-EAC), Group of Ministers (GoM) committees etc. → more
lack of coordination. So, Modi felt PC is a hopeless mess beyond repairs & replaced it with NITI
Ayog. योजना आयोग की नाकामियो ने अन्य सं स्थाओ को जन्म दिया अंतत: आपस मे सं कलन मुश्किल होने लगा।
9) PC was a ‘closed / bureaucratic minded body. Not as swift to adopt technology, start-up
ecosystem, frequent interactions with entrepreneurs and academicians through workshops,
seminars, award-felicitations etc. (बं ध-दिमाग़ नोकरशाही मानसिकता के चलते दूसरों से विचारों का आदान प्रदान और
मेल जोल काफ़ी कम था।।)

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40.8 👳🏻🧔 P LANNING COMMISSION VS NITI AAYOG: STRUCTURE

40.9 NITI AAYOG : FUNCTIONS ARE DIFFERENT THAN PLANNING COMMISSION- HOW?
Darpan 2017 onwards: NGO (Non-Governmental Organization) register here, get unique
Portal id → apply for grants under various govt schemes. नीति आयोग के इस वेब पोर्टल पर
पंजीकरण करने के बाद ही ग़ैर सरकारी सं गठन सरकारी योजनाओं में जुड़ सकते हैं
Aspirational - 2018 onwards: to rapidly transform 115 backward districts on 49 key
District performance indicators (KPIs :मुख्य निष्पादन सं के तक) related to Health, Nutrition,
Programme Education, Agriculture, Water Resources, Financial Inclusion, Skill
Development, Infrastructure etc.
आकांक्षात्मक जिला
- progress monitored in NITI online portal called ‘Champions of Change’
कार्यक्रम
Strategic - NITI Aayog suggested strategic disinvestment of 30+ sick / loss making
disinvestment CPSEs such as Air India, Pawan Hans Helicopter, Scooters India etc.
रणनीतिकविनिवेश (PC wouldn’t have done this because of their Nehruvian mindset.)
POSHAN - Ministry of Women and Child Development (MWCD) is implementing
Abhiyaan POSHAN Abhiyaan to make India malnutrition free India by 2022 with focus
कु पोषण निवारण के on pregnant women, mothers and children. (More in Pillar#6)
लिए - NITI Vice-Chairman is the head of POSHAN Abhiyaan’s National Council.
(Planning Commission’s focus would had been Food-calorie security through
cheap wheat /grain only, whereas Nutritional Security is bigger.)
Bills and Since its inception Niti Aayog has
policies - Helped framing various policies on Energy, Mineral etc.
कानूनों के निर्माण में - Helped framing various bills, Model Acts on Agricultural Land Leasing,
सलाह Livestock Selling etc.

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 🌽
Agriculture
NITI helped revamping the MSP by suggesting price deficiency payments (under
PM-AASHA), & revamping fertilizer subsidies through DBT mechanism to
कृ षि क्षेत्र fertilizer companies. (Ref: Pill#4: Agro Handout)
SDG For Sustainable Development Goals (सतत विकास लक्ष्य)
(More in 📑
- NITI developed SDG India Index to monitor our progress in 17 SDG goals
Pillar#6) - NITI suggested Govt. to focus on methanol / biofuel based economy for
reducing the fuel bill by around 30% by 2030.
GIRG Niti Aayog Global Indices to Drive Reforms and Growth (GIRG) dashboard to
Dashboard monitor India’s performance on various global socio-economic parameters in
(सामाजिक आर्थिक such as Multidimensional poverty index of United Nations Development
📑
विकास के आंकड़े) Program (UNDP-सं युक्त राष्ट्र विकास कार्यक्रम का बहुआयामी गरीबी सूचकांक). ( Ref: Pill#6)

📯 CSS NITI helped developing Output Outcome Monitoring Framework to monitor the
कें द्र द्वारा प्रायोजित implementation of Govt schemes. PC simply launched schemes after schemes,
योजनाएं without much attention to performance monitoring.
Seminars NITI regularly organizes seminars, workshops, conferences for idea exchange
with industries and academicians. PC was ‘closed / introvert body’ (अंतर्मुखी) in
terms of interaction with others.
Startups - NITI runs Atal Innovation Mission (AIM) →grant of upto ₹ 10 crores to
setup Atal Incubation Centres incubators. → AIM also started “Mentor
India” program, wherein experts from industry provide mentorship to
students in Atal incubator labs.
📑
- SETU to help startups.(More in Pillar#4B: Startup)
Digital Age NITI developing National Program on Artificial Intelligence.
🏻
✍ Conclusion? From above aspects, it is evident that NITI’s approach is more modernised,
forward-looking, less bureaucratic and less status-quo oriented than the erstwhile Planning
Commission. With such initiatives, NITI Ayog is playing a pivotal role for economic growth, human
development and good governance in India. नीति आयोग का दृष्टिकोण अधिक आधुनिक, दूरंदेशी, कम नौकरशाही और
कम 'यथास्थिति' वाला है- जिससे वह आर्थिक वृद्धि, मानव विकास, और सुशासन में मदद करेगा

41 🧔🏻🧑‍🦲 G OVERNANCE UNITS: STATES AND DISTRICTS

41.1 🧔🏻🧑‍🦲 A DMIN UNITS: NEW STATES AND ECONOMIC GROWTH

(PYQ-GSM-2018)Discuss whether formation of new states in recent times is beneficial or not for the
economy of India. (चर्चा करें कि क्या हाल के दिनों में नए राज्यों का गठन भारत की अर्थव्यवस्था के लिए लाभदायक है या नहीं)

(Origin) From 2000 onwards, following states have been created in India:

STATE ECONOMIC PROBLEM IF ANY

CHHATTISGARH  Aid curse: Special category state bol ke Planning commission and past
JHARKHAND Finance commissions gave a lot of money without Performance

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 benchmark and accountability resulting into corruption and Poor
infrastructure.
भ्रष्टाचार  Large scale corruption e.g. Jharkhand IAS officer Pooja Singhal: ED
खनिज कारोबार में recovered over ₹17 crores cash from home (2022).
 Mining resource curse: LWE/Naxal, mining mafia and politician nexus.
नक्सलवादी माफ़िया और
 Chhattisgarh State to return to Old Pension Scheme for govt employees
राजनेताओं की साँठ गाँठ,
(2022) – extra debt burden on State budget / future generation.
मानव विकास के मानदंडों
 Poor performance in HDI indicators- infant mortality, maternal
पर ख़राब प्रदर्शन, mortality, education.
ब्याजखोरो का आतंक।  Loan Sharks trapping poor parents and then pushing young daughters
into human trafficking. (=loss of demographic dividend)
 Mining mafia, Drug trafficking,
UTTARAKHAND  unplanned urbanisation vs disaster vulnerability,
अंधाधुंध शहरीकरण के  Frequent changes in the chief minister (10 CM in 22 years)= economic
चलते प्राकृ तिक आपदा में policy uncertainty. (मुख्यमंत्री बार बार बदलते हैं। आर्थिक नीतियों में अनिश्चितता।)
भेद्यता बढ़ गई  Economy centered around tourism is more vulnerable to external shocks,
such as Global financial crisis and Corona when the tourist inflow falls.

TELANGANA  Hyderabad is the capital and a booming IT/Pharma hub - as a result

हैदराबाद तो विकसित हुआ attracts good amount of FDI and provides lakhs of job- even before the
किन्तु बाक़ी ज़िलों में अभी formation of this new State.
 But some of the other districts suffer from poverty, inequality and
भी ग़रीबी असमानता
unemployment.
बेरोज़गारी आदि की
 Some critics argue that freebie culture is unsustainable and state may
तक़लीफ़ । चुनाव जीतने के
suffer high amount of debt burden.
लिए रेवड़ी बाँटना -  Nuisance of loan sharks / informal moneylenders- point to the problem
दीर्घावधि में वहनीय नहीं। of Financial inclusion. (ब्याजखोरों/लोन-माफिया का आतंक/ वित्तीय समावेशन की कमी)
So looking at above issues, it is difficult to imagine that newly formed states have given their best
possible contribution to GDP and job creation and export of India, yet. (उक्त समस्याओं को देखते हुए यह
मानना मुश्किल है कि इन नए छोटे राज्यों ने देश के जीडीपी रोजगार निर्माण और निर्यात वृद्धि में श्रेष्ठ भूमिका निभाई होगी।)

41.1.1 Major problem of the newly formed states: (नव-निर्मित राज्यों की मुख्य समस्या।)
- Political instability after new demarcation of of Lok Sabha/ Vidhaan-Sabha seats. Eg. 2000–2023:
Uttarakhand has seen 10 chief Minister. (राजकीय अस्थिरता)
- Due to fragile / unstable State governments → politicians have to more offer freebie/revdi to win
election (recall Saliency Bias- it’ll get more severe if elections are frequent → then politician
cannot hope to wait for a long-term infrastructure project to get votes = creating new set of
challenges e.g. Petrol subsidy in Jharkhand, variety of free schemes in Telangana, etc. (राजकीय
अस्थिरता है। इसलिए बार बार चुनाव जीतने के लिए रेवड़ी सं स्कृ ति पर ज़्यादा निर्भरता)
- Administrative challenges: Shortage of senior IAS/IPS → inefficiency and corruption. (वरिष्ठ
अफ़सरों की क़िल्लत के चलते प्रशासनिक चुनौतियां।)

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- Economic costs: the new state government has to spend money for new infrastructure and
institutions (e.g. jail, courts, universities, airport etc). This can put a strain on the national and
State budget and delay economic development. (नई सं स्थाएं बनाने में आर्थिक बोझ ।)

41.1.2 ✍️ Conclusion:
Public administration thinkers advocate for smaller states for good governance and economic
development. However, looking at the majority of the newly formed states, this vision is yet to be
realised. Need of the hour is to address the administrative and economic challenges to overcome this.
(note that I have not written “we need to address the political challenges” because it is not a
practicable suggestion.) (लोक प्रशासन के विद्वानों का मानना है कि छोटे राज्य बनाने से सुशासन बेहतर होता है और आर्थिक
विकास होता है. किं तु उक्त राज्यों की समस्या देखते हुए यह सपना साकार होना अभी बाकी है इसलिए अग्रता क्रम से उन प्रशासनिक और
आर्थिक चुनौतियों से लड़ना जरूर) OR

After Gujarat was carved out of from the erstwhile Bombay State (1960), the initial years of Gujarat
also suffered from administrative, economic and political challenges but over the period of time, its
economy and administration has matured. Same can be hoped for these newly formed states but it
will require patience and perseverance from all the stakeholders. (महाराष्ट्र से अलग होने पर गुजरात में भी यही
चुनौतियां देखी थी लेकिन वर्षों बाद आर्थिक और राजनीतिक स्थिरता हासिल हुई. यही सुखद भविष्य, हम नए छोटे राज्यों के बारे में भी सोच
सकते हैं. लेकिन सभी ने उसके लिए धीरज और दृढ़ता से कदम उठाने होंगे)

41.2 ASPIRATIONAL DISTRICTS (आकांक्षी ज़िले)

(PYQ-2018) Mention core strategies for the transformation of aspirational districts in India and
explain the nature of convergence, collaboration and competition for its success. (भारत में आकांक्षी जिलों
के परिवर्तन के लिए मुख्य रणनीतियों का उल्लेख करें; इसकी सफलता के लिए अभिसरण, सहयोग, प्रतिस्पर्धा की चर्चा करें।)

(Origin) 2018: Launched by NITI Aayog. Aspirational Districts Programme (ADP) aims to
transform 100+ most under-developed districts across the country. Its core strategy includes
competition, collaboration and convergence in following manner:

41.2.1 Aspirational Districts → competition (प्रतिस्पर्धा)

These districts are ranked across 49 Key Performance Indicators (KPIs).

- indicators are clubbed into under 5 broad socio-economic themes namely- Health & Nutrition,
Education, Agriculture & Water Resources, Financial Inclusion & Skill Development and
Infrastructure. (स्वास्थ्य और पोषण, शिक्षा कृ षि और जल सं साधन, वित्तीय समावेश, कौशल विकास और बुनियादी अवसं रचना
कि पाँच सामाजिक-आर्थिक मानदंडों में कु ल ४९ इस प्रदर्शन सूचकांकों पर इन ज़िलों का सतत् रूप से निरीक्षण किया जाता है।)
- the live ranking is available on digital dash board.
- accordingly, the concerned district collector / DM / IAS is given appreciation for good work and
advisory / alert for lack of progress. (इस प्रदर्शन के हिसाब से जिला कलेक्टर को शाबाशी या चेतावनी दी जाती है।)
- Furthermore, Harvard Business School → Institute for Competitiveness → Its Indian subsidiary
has been roped into the project for preparing the ranking. (अमेरिकी हार्वर्ड यूनिवर्सिटी की भी एक सं स्था को इस
प्रोजेक्ट में शामिल किया गया है।)

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- so automatically it brings a sense of competition among the districts & states to deliver the best
on those 49 KPIs. (इन ४९ मानदंडों पे इस स्पर्धा की भावना के चलते ज़िलों में अफ़सर अच्छा काम करते हैं।)
41.2.2 Convergence thru officers (अधिकारियों के चलते अभिसरण)
Convergence means a situation where different elements unite at a common point.

HIERARCHY OFFICER (तीनों स्तर पर आइएएस अधिकारी हैं।)

TOP LEVEL ADMINISTRATIVE
CEO, Niti Aayog (an IAS)
COORDINATION
STATE-LEVEL ADMINISTRATIVE additional secretary rank officer (IAS) are designated as
COORDINATION “Prabhari officers” for individual districts.
DISTRICT LEVEL DM (IAS)
It ensures that best practices from 1 district can be adopted in others

41.2.3 Convergence in schemes (योजनाओं में अभिसरण)

- using MGNREGA workers to build Anganwadi centres, seed-nurseries, canals etc.
- ensuring 100% electrification to ensure better educational outcomes, school attendance and
hospital care. (24 घं टे बिजली से शिक्षा स्वास्थ्य के सूचकांकों में सकारात्मक परिवर्तन पाया गया।)
- housing under PM-Awas Yojana, accompanied with other schemes for LPG Cylinder, electricity
connection, toilet (Swatchh Bharat Mission) (ग़रीब को मकान आवाज़ के साथ साथ सिलेंडर बिजली शौचालय की
योजनाओं की भी लाभ दिए जाते हैं।)
- giving PM Mudra loans to beneficiaries who have completed training (under NRLM/NULM/PM
Kaushal Vikas Yojana) and wish to start a Micro enterprise. (उद्योग के लिए लोन के साथ साथ तालीम भी दी
जाती है)
- whenever PM Jan Dhan bank account is opened, the beneficiary also encouraged to opt for other
insurance pension schemes of the government; (जनधन बैंक खाता खोलने पर लाभार्थी को सरकारी पेंशन इंश्योरेंस
बीमा योजनाओं में भी पंजीकरण के लिए जागरूक किया जाता है।)
- distributing soil health cards to farmers who have registered for PM-KISAN (6000).
41.2.4 Collaboration (सहयोग)
- Regular review meetings, workshops held for the stakeholders.
- Field visit by officials in other districts. (अफ़सरों द्वारा अन्य ज़िलों में मुलाक़ात और सहयोग)
- NITI Aayog regularly publishes compilation of the best practices by aspirational district so other
DM/Collectors can replicate it in their district. (see the next section)
41.2.5 Copying of Best Practices (अन्य जिलों की उत्कृ ष्ट प्रणालियों की नकल करने के अवसर)
DISTRICT BEST PRACTICE
centralised kitchen to provide hot nutritious hygienic meals to
NADURBAR
school (instead of setting up kitchen in every school)
Bike Ambulance to quickly transport either the doctor for the
KANDHAMAL
patient depending on the case.

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 DISTRICT BEST PRACTICE
HOSTELS FOR PREGNANT TRIBAL WOMEN. So they don’t
VIZIANAGARAM have to be rushed to the hospital at the last minute to from their
remote village.
Parent of girl child gifted with were gifted with 5 saplings
(Coconut, Litchi, Assam Lemon, Guava & Amla) to combat
HAILAKANDI IN ASSAM
malnutrition
Mfg of sanitary napkins with the help of self-help groups.
bell ringing and night petroling ensure that villagers use mosquito
KORAPUT IN ODISHA
nets while sleeping to Combat malaria.
Library in every school where adults can come for reading after
SITAMARHI IN BIHAR
school hours.
UDHAM SINGH NAGAR IN schools had to be merged after low birthrates, but then transport
UTTARAKHAND facility provided to ensure 100% attendence.
Bolo App by Google. Child is required to speak the English and
DAMOH, MADHYA
Hindi words given in the mobile app to improve his reading verbal
PRADESH
communication
setting up water storage in hills to provide water supply in the
KALAHANDI IN ODISHA
village hamlets via gravity.
person applying for the gun license has to prove that for the last 30
FIROZPUR IN PUNJAB
days he has raised 10 tree saplings.
KONDAGAON IN Women training Centre focusing on five projects- garments,
CHHATTISGARH handloom, sanitary pads, glass, bangles, LED bulb MFG & repair.
HAZARIBAGH IN BLOCK DEVELOPMENT OFFICER (BDO) SCORECARDS. The
JHARKHAND score is also used for determining their promotion and transfers.
KHANDWA IN MADHYA LOK SEWAK APP for E-attendence of frontline workers such as-
PRADESH Aasha worker, forest guard, teacher, nursing staff etc.
Open villagers come for various grievances to the district collector
VIZIANAGARAM IN
office from as far as 100 kilometre. They’re given subsidised meal
ANDHRA
at Rs.10

41.2.6 ✍️ Conclusion: Aspirational Districts – end on +VE note

- ES23 appreciated that in the last four years since the launch of the scheme (2018–22) 117
aspirational districts have shown tangible improvements in the indicators related to health and
nutrition, education, agriculture, and water resources, financial inclusion and skill development,
and basic infrastructure.

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- Some of these districts have done even better than the state-level average numbers and even
better than the non-aspirational districts.
- It proves that even the most backward districts can become prosperous when government
officials put their heart and mind into implementation of initiative, combined with enthusiastic
participation of the people.
(आर्थिक सर्वेक्षण ने पाया कि इन पिछड़े/आकांशी जिलों में काफी सुधार हुआ है शिक्षा स्वास्थ्य कृ षि पानी वित्तीय समावेशन कौशल विकास
और गरीबी निवारण में. कु छ किस्सों में तो सामान्य जिलों के मुकाबले भी और राज्य के औसत प्रदर्शन के मुकाबले भी इन पिछडे/आकांशी
जिलों ने अधिक अच्छा प्रदर्शन किया है इससे साबित होता है कि जब सरकारी अफसर दिलजान लगाएं और लोगों की तरफ से उत्साह पूर्ण
भागीदारी हो तो -अत्यंत पिछड़े जिलों को भी खुशहाल बनाया जा सकता है. )

42 GSM2- POLICY DESIGN / STAKEHOLDER / AWARENESS

42.1 MULTI-LEVEL PLANNING ( बहु-स्तरी योजनाकरण)
(PYQ-GSM2-2019) ‘In the context of neo-liberal paradigm of development planning, multi-level
planning is expected to make operations cost effective and remove many implementation blockages.’-
Discuss. ('विकास योजना के नव-उदारी प्रतिमान के सं दर्भ में, आशा की जाती है की बहु-स्तरी योजनाकरण सं क्रियाओं को लागत
प्रभावी बना देगा और अनेक क्रियान्वयन रुकावटों को हटा देगा |' चर्चा कीजिए | )

NOTE: UPSC Examiner Verbatim lifted this statement from IGNOU MA Public Administration
Block 16 (Local Governance) Ch. 18. This is optional subject level question, So i put it under tough
category.

42.1.1 Neoliberalism- Define (नव-उदारीकरण)

"neoliberalism" is an economic and political ideology. It is rooted in the older classical liberal
economic ideas but with a modern twist / faster pace, particularly in its focus on market-driven
solutions to societal/welfare issues. ("नवउदारवाद" एक आर्थिक और राजनीतिक विचारधारा है। यह पुराने शास्त्रीय उदारवादी
आर्थिक विचारों में निहित है, लेकिन एक आधुनिक मोड़/तेज गति के साथ, विशेष रूप से सामाजिक/कल्याणकारी मुद्दों के बाजार-सं चालित
समाधानों पर जोर देता है।)

Neoliberal perspective of development focuses on

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 Individual Liberty, Market driven economy (व्यक्ति को स्वतंत्रता, बाज़ार आधारित अर्थतंत्र।)
 State minimalism- in welfare schemes with greater focus on fiscal deficit control (अब सरकार के
आकार और योजनाओं में कमी करना, राजकोषीय घाटा कम करना।)
 Greater involvement of the private sector, including in providing basic infrastructure services
and public amenities. (निजी क्षेत्र की ज़्यादा भागीदारी, शिक्षा स्वास्थ्य जैसी बुनियादी सुविधाएँ भी निजी कं पनियां प्रदान करें।)
 Multi level planning by engaging all the decision makers at all levels of governance. (बहु आयामी
आयोजन।)
42.1.2 Neoliberalism- Origin in India (नव-उदारतावाद का भारत में प्रारंभ/ शुरुआत।)
 After independence, we had adopted the Soviet model of Five Year Plans for our economic
growth and poverty removal. It was expected that the benefits of the development will trickle
down to the bottom start of the society. (आज़ादी के बाद तो हमने सोवियत सं घ का समाजवादी पंचवर्षीय योजना वाला
मॉडल अपनाया था)
 But the fall of the USSR, balance of payment crisis, rising inflation and unemployment exposed
the shortcomings of the top-down five year planning system. (किन्तु सोवियत सं घ का पतन हुआ, भारत में
भुगतान सं तुलन की समस्या, बढ़ती महँगाई और बेरोज़गार ने इस प्रकार की पं चवर्षीय योजनाओं की खामियों को उजागर किया।)
 Parallelly, in the early 80s, Neoliberal perspective of development emerged in the United
Kingdom and the United States. (उसी के समांतर अमेरिका और ब्रिटेन में नव-उदारतावाद का उदय हो रहा था।)
 In India, LPG Reforms of 1991, PM Rao introduced liberalism, and in the subsequent decades we
have moved towards neo-liberalism esp. under the aegis of PM Vajpayee and PM Modi. (तो भारत
में भी प्रधानमं त्री नरसिम्हा राव, वाजपेयी और मोदी के समय में नव-उदारतावाद की तरफ़ हम आगे बढ़ते हैं।)
42.1.3 Multi level planning in India (MLP) – Mechanism (बहु-स्तरी योजनाकरण)
 Our constitution provides for three tiers of Government at 1) Union 2) state 3) local level.
 Further, Local bodies are subdivided at Zila, Tehsil and Village level.
 We also have Metropolitan Planning Committee (MPC) and District Planning Committee
(DPC) to ensure balanced development in rural and urban areas. (शहरी और ग्रामीण विकास में सं तुलन के
लिए मेट्रोपॉलिटन योजना समिति और जिला आयोजना समिति होती है।)
 Implementation of GST has brought Union and States together in fiscal federalism. (राजकोषीय
सं घवाद)
 NITI Aayog: Governing Council consists of PM, CM, Lt Governors of other UTs etc.
 In health, education, sanitation and infrastructure many activities have been outsourced /
managed by the private sector and international agencies (World Bank, UNICEF etc.)
 Government holds public consolations / seeks citizen inputs during environment impact
assessment (EIA), and passing of important legislations. (पर्यावरण प्रभाव मूल्यांकन)
 Under the multi level planning concept, all of these decision makers have to collaborate with
each other in the planning process. However, following are the challenges:
42.1.4 MLP Challenges: Combative federalism (झगड़ालू सं घवाद)
 To double the farmers income, it is necessary to health Centre produce across India through
online platform.
 Union launched e-NAM portal, but all APMC mandis not connected.
 Model APMC act not yet adopted by all States.

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 Three Farm laws had to be repealed because union failed to convince farmers and some of the
state governments of its benefits. (तीन कृ षि कानूनों को रद्द करना पड़ा)

 It proves that agriculture growth requires multi level planning involving both Union and States’
Agricultural ministries and departments. (यानी कि कें द्र और राज्यों की कृ षि विभागों के बीच सामंजस्य की कमी है।)
 Similar case can be seen with RERA - where union enacted the law but all States have not yet
appointed the authorities. This has serious consequences to the urban housing.
 similarly, some state governments or not implementing PM JAY ( ₹5 lakh health Insurance), PM
Fasal Bima etc schemes. (कु छ राज्य सरकारे कें द्र द्वारा प्रायोजित योजनाओं को लागू नहीं कर रही)
 During the GST council meetings, state government representatives agree with the decisions
passed, but after meeting is over, they blame the Union for unpopular decision, during media
interaction e.g. 5% GST on pre-packaged food.

42.1.5 MLP: case of skill development

Under the PM Kaushal Vikas Yojana, Government aims to impart the vocational skill to
unemployed youth. If Multi Level Planning is implemented in letter and spirit, then it should result
into following outcomes :

Decision Level Outcome

Union • weed out ghost beneficiaries & absentee trainees with Aadhar biometric
database. (आधार कार्ड की सत्यापन द्वारा फ़र्ज़ी भूतिया प्रशिक्षुओ को बेदख़ल किया जाए।)
• GPS mapping of the employer vs migrant workers locations to find out the
migration patterns. (e.g. Odisha workers in Surat textile and diamond

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 industry) (जीपीएस टेक्नोलॉजी से उद्योगपतियों की श्रम-बल ज़रूरत और प्रवासी-मज़दूरों के कौशल
का पैटर्न ढूंढा जाए।)
• with the help of public sector banks, help beneficiary to get business loan
after completing the skill training. (तालीम लेने के बाद लाभार्थी को बैंक से लोन/कर्ज/ऋण
भी आसानी से मिले यह सुनिश्चित किया जाए।)
States • 1) Conduct training needs analysis (TNA) of various sectors/industries in
राज्य प्रशासन the given State (इस उद्योग में कितनी कौशल की ज़रूरत है उसका सर्वेक्षण किया जाए)
• 2) Empower the district administration to implement the scheme in letter
and spirit (जिला प्रशासन के अफसरो को वो छू ट/शक्तियां दी जाए ताकि वह अच्छे तरीक़े से
योजना तो अमल कर सके ।)
• 3) Ensure job-placement, the minimum wage norms are complied with.
(तालीम के बाद रोज़गार तो मिले, लेकिन रोज़गार में न्यूनतम वेतन भी मिले ये सुनिश्चित किया जाए।)
District • Launch best quality training programs attuned to local industry
administration requirement (स्थानीय उद्योगों की ज़रूरत के हिसाब से सर्वश्रेष्ठ गुणवत्ता की तालीम कार्यक्रम शुरू
किए जाएं ।)
जिला प्रशासन • Tie-up with local industries for maximum placement. (तालीम के बाद मातम लोगों
को रोज़गार मिले इसके लिए स्थानीय उद्योगपतियों के साथ सं कलन किया जाए।)
• Best Trainers/faculty / subject experts - who is also familiar with the local
language (स्थानीय भाषा में तालीम दे सके ऐसे ही ट्रेनर ढूंढे जाए।)
• Ensure maximum awareness, enrollment and class-attendance of the
trainees. (युवाओंमें महत्तम जागृति, पंजीकरण और वर्गखण्ड में हाज़िरी सुनिश्चित की जाए।)
But, if Multi Level Planning is not implemented in letter and spirit, then it will result in fragmented,
isolated and disjointed efforts, that will result in wastage of money.

e.g. absenteeism of trainer and trainees, siphoning of the funds by showing ghost beneficiaries on
paper, lack of placement/ not finding jobs after training, lack of loan finance to start business etc.
(यदि उक्त कार्य नहीं होंगे तो योजना विफल रहेगी। प्रशिक्षु गैरहाज़िर रहेंगे, भूतिया प्रशिक्षु दिखाकर अफ़सर पैसा खा जाएँगे/वित्तीय-ग़बन
करेंगे, बेकार तालीम के चलते व्यक्ति को ना तो रोज़गार मिलेगा, ना ही आसानी से लोन।)

42.1.6 ✍️ Conclusion: Multi Level Planning ( बहु स्तरीय आयोजन के बारे में निष्कर्ष)
Template keywords
X thing imp fiscal deficit control, demographic dividend, disaster management,
Environment protection, sustainable development goals, employment
generation, GDP growth (राजकोषीय घाटा नियंत्रण, जनसांख्यिकीय लाभांश, आपदा प्रबं धन,
पर्यावरण सं रक्षण, सतत विकास लक्ष्य, रोजगार सृजन, जीडीपी वृद्धि)
but, Y thing disjointed efforts by the three levels of government- union, state and local
creating problem bodies (सत्ता के तीनों स्तर पर- के न्द्र, राज्य और स्थानीय प्रशासन में बिना सं कलन के कार्रवाई एक
बड़ी समस्या है।)
therefore, Z1 is implementation of all the schemes through multilevel planning। (सभी तमाम
need of the hour OR योजनाओं को बहु स्तरीय आयोजन से लागू किया जाए/अमल किया जाए।)

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 it will help in a long SDG Goals, developed nation status by 2047. (सतत् विकास लक्ष्य प्राप्ति और भारत को
way to विकसित देश बनाने में यह बहूत मदद करेगा।)
42.2 👨‍💻🤝🧔🏻 S ERVICE SECTOR COOPERATION FOR DEVELOPMENT?
(PYQ-GSM2–2019) The need for cooperation among various service sector has been an inherent
component of development discourse. Partnership bridges bring the gap among the sectors. It also
sets in motion a culture of ‘Collaboration’ and ‘team spirit’. In the light of statements above examine
India’s Development process. विभिन्न सेवा क्षेत्रकों के बीच सहयोग की आवश्यकता विकास प्रवचन का एक अन्तर्निहिति घटक
रहा है | साझेदारी क्षेत्रकों के बीच पल बनती है | यह ‘सहयोग’ और ‘टीम भावना’ की सं स्कृ ति को भी गति प्रदान कर देती है | उपरोक्त
कथनों के प्रकाश में भारत के विकास प्रक्रम का परिक्षण कीजिए |

42.2.1 👨‍💻🤝🧔🏻 Introduction

- Since the LPG reforms of 1991, the service sector has become a leading contributor to India’s
economic growth and export earnings. (LPG सुधार के बाद भारत के आर्थिक वृद्धि और निर्यात में सेवा क्षेत्र का एक
बड़ा योगदान दे रहा है।)
- ICT-communication, trade, tourism, hotels, transport and finance are among the primary
drivers of this service-sector led growth. (आईसीटी-सं चार, व्यापार, पर्यटन, होटल, परिवहन और वित्तीय सेवाएँ)
- The partnership and collaboration with these sub-sectors can help India’s development process
in the following ways: (इन सेवा क्षेत्रों से सरकार भागीदारी करेगी, तो देश के विकास में निम्न फ़ायदे होंगे।)
42.2.2 👨‍💻🤝🧔🏻 Service sector partnership: what has been done? (अब तक क्या हो चुका है)
- NPCi is a not for profit company set up by Indian banks. It has developed Aadhaar enabled
payment system, IMPS, UPI, BHIM and other modules which facilitate cashless economy and
direct benefit transfer for Government departments.
- Infosys has developed the GSTN portal for collection and refunds of the GST.
- L&T has developed big data analytics tools for the Income Tax Department to nail tax evaders
under Project Insight.
- GeM portal for public procurement, Bharatkosh for non-tax Revenue receipts, E-NAM portal for
agri trading. But their number of transactions compared to the private shopping sites. So, if
Public administration + private IT sector team up together → logistics and supply chain
management can be enhanced further.
42.2.3 👨‍💻🤝🧔🏻 Service sector partnership: what can be done- Finance & Education? (क्या होना चाहिए)
- Tele-density is improving in rural area but insurance-density and insurance penetration is very
low in India compared to Malaysia, Thailand and China (ग्रामीण इलाको में मोबाइल सं चार की उपलब्धता तो
बढ़ी है, लेकिन बीमा ख़रीदने के बारे में लोग अभी भी उदासीन है।)
- Govt should tie up mobile companies for selling the insurance and pension insurance schemes.

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- Government has launched Swayam platform for online learning courses. But its adoption,
awareness and popularity is much less compared to how frequently youngsters use YouTube,
jioTV, TikTok or Hotstar. (डिजिटल माध्यम से अच्छी शिक्षा प्रदान की )
- If Govt collaborated with those platforms it could improve the penetration of education and
skilling programs.
42.2.4 👨‍💻🤝🧔🏻 Service Sector partnership for future: Health (स्वास्थ्य क्षेत्र में भागीदारी।)
- Enrollment of more number of private hospitals under PM-JAY health insurance scheme, to
improve the impact of the scheme. (ज़्यादा निजी अस्पतालों का प्रधानमंत्री जन आरोग्य योजना में पंजीकरण।)
- 5G has a variety of applications in Telemedicine, robotic surgery, defence. But majority of the
experts are in the private sector, whereas the majority of the beneficiaries (rural people, poor
people) are dependent on the public sector. Greater collaboration here is therefore warranted.
- Medical sector and tourism sector → Medical tourism. Foreign patients come to India for
cheaper treatment compared to the parent country. Foreign earning, GDP. But this requires
accreditation / rating of the Indian hospitals, ease of getting visa, ease in transport-connectivity-
communication facilities. Public Administration + private sector has to come together. (चिकित्सा
पर्यटन: अमेरिका और यूरोप में शल्यक्रिया काफ़ी महँगी होती है उन विदेशी मरीज़ों को भारत में इलाज किया जाए। लेकिन उन्हें आसानी
से वीज़ा मिले तो परिवहन सं चार की सुविधा हो इसके लिए सरकारी प्रशासन और निजी अस्पतालों के बीच भागीदारी ज़रूरी है।)
42.2.5 👨‍💻🤝🧔🏻 Conclusion: yes it can help (हाँ ये सब करना ज़रूरी है।)
- Thus, the collaboration with the service sector can improve our efforts in financial inclusion,
health, education, skilling, job creation, agriculture growth and export earnings. (वाक़ई लोक प्रशासन
और निजी सेवा क्षेत्र के बीच भागीदारी से वित्तीय समावेशन, स्वास्थ्य, शिक्षा, कौशल विकास, रोज़गार सृजन, कृ षि वृद्धि और निर्यात में
बढ़ोतरी हो सकती है।)
- All this can collectively can augment our development process/efforts & bring Indian economy
to $5 trillion dollar target and developed nation status by 2047.
42.2.6 👨‍💻🤝🧔🏻
Mistakes
- Specific examples / case studies req for 250 words answer.
- Logical order: LPG-reform → service sector grew → What has been done in past, and what
could be done in future?
- Excessive focus on using Call Centre to generate jobs in Northeast and Kashmir or using ICT to
plug leakage in PDS = cliched.
42.3 GSM1 →GOVT NGO PRIVATE SECTOR COOP. 10M
Q. What type of cooperation between the government, NGOs, and private sectors would be most
effective in tackling socio-economic issues of development? विकास के सामाजिक-आर्थिक मुद्दों से निपटने में सरकार,
गैर-सरकारी सं गठनों एवं निजी क्षेत्रों के बीच किस प्रकार का सहयोग सर्वाधिक उपयोगी होगा? - (PYQ-GSM3-2024)
• (Intro-Data): Hardly 2% of Indian voters pay income tax. The government does not get
enough tax revenue to finance all the welfare and development activities.
• Therefore, cooperation with NGOs and the private sector becomes inevitable. Here are some
notable examples:
42.3.1 Examples of Cooperation
• Infosys has developed the GSTN portal for the collection and refunds of the GST tax.

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 • L&T has developed big data analytics tools for the Income Tax Department to nail tax
evaders under Project Insight.
• Airtel, Jio, etc., are improving tele-density, 4G-5G, digital payments, etc.
• Big companies are required to spend 2% of their profit on CSR.
• NGO Akshay Patra is supplying mid-day meals in schools.
• PPP in highways, hospitals, airports, and shipping ports.
42.3.2 Cooperation is NOT EFFECTIVE WHEN:
• The question is asking what type of corporation is most effective. So you should rewrite the
following arguments in such a way that when the following precautions are taken, the
corporation will be most effective.

• Populism: keeping electoral calculations in mind, if the government does not allow the
private player to raise the fees even if energy prices increase. e.g. in metro or buses.
• Ignoring market realities: Coal power electricity is much cheaper than wind power. If the
government does not provide a subsidy to the wind power companies, then consumers are
unlikely to purchase it.
• When public utilities are outsourced, and they become very expensive and unaffordable. e.g.
PPP-Hospital where free beds are low in supply, and VIP-quota beds are chargeable.
• When safety is compromised. e.g. PPP-airports, bridges with pillars collapsing because the
operator is cutting corners in repair maintenance to keep his profit margin high.
• If public data is shared and then misused by the private party for commercial gains.
• Crony capitalism: contracts awarded for bribes/nepotism.
• If audit and supervision are ignored, then NGOs are likely to siphon funds, and food grains
show ghost beneficiaries.
42.3.3 Conclusion: For an effective partnership,
• the given service should remain affordable for the poor.
• while it should also be financially viable for the private player as well.
• No compromise with safety, data privacy, or quality.
• The project allotment process should be transparent.

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42.3.4 MISTAKEs
player private sector NGO
coop 4 social issues xxx xxx
coop 4 economic issues xxx xxx
• do not make a matrix/table like this, otherwise you will struggle to fill up all the cells with
proper arguments/examples, and you waste, lot of time, just in brain storming. This is 150w
q not 1200 words essay.
• do not give excessive number of examples just to fill up the word limit because the question
is not about examples, but effectiveness.
42.4 🙋‍♂️🤝🦁 P EOPLE PARTICIPATION IN WELFARE SCHEME (योजनाओं में लोग भागीदारी।)
(PYQ-GSM2–2019) Performance of welfare schemes that are implemented for vulnerable sections is
not so effective due to absence of their awareness and active involvement at all stages of policy
process – Discuss. (कमजोर वर्गों के लिए क्रियान्वित की जाने वाली कल्याण योजनाओं का निष्पादन उनके बारे में जागरूकता के न
होने और निति प्रक्रम की सभी अवस्थाओं पर उनके सक्रिय तौर पर सम्मिलित न होने के कारन प्रभावी नहीं होता है | - चर्चा कीजिए |)

42.4.1 🙋‍♂️🤝🦁 Introduction to welfare schemes

- Under the Directive Principles of State Policy, Government is required to provide the right to
education, work, health and social security. (राजनीति के पथ दर्शक सिद्धांतों के अनुसार सरकार ने लोगों को शिक्षा
रोज़गार स्वास्थ्य और सामाजिक सुरक्षा देनी होगी।)
- To accomplish this, both Union and State governments have been administering a variety of
welfare schemes since independence. (इसके वास्ते/ इसके लिए कें द्र और राज्य दोनों ही स्तर की सरकारे आज़ादी से
लेकर अब तक विभिन्न प्रकार की कल्याणकारी योजनाएं चलाती है।)
- Yet, India ranks above 100+ in both in Human Development Index and Global Hunger Index.
- The lack of awareness and lack of involvement of vulnerable people in the welfare schemes is
among the primary reasons for this. (किन तो इतनी सारी योजनाओं के बावजूद भी वैश्विक मानव विकास और भुखमरी
के सूचकांकों में भारत का प्रदर्शन सं तोषजनक नहीं है। गरीबों के बीच कल्याणकारी योजनाओं के बारे में जागृति का अभाव और ग़रीबो
की भागीदारी का अभाव- इन ख़राब रेंकिक के प्रमुख कारण है।)

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42.4.2 🙋‍♂️🤝🦁 PPL Awareness- Case study of a generic medicine scheme
- 2015: PM Jan Aushadhi Scheme (JAS) to provide generic medicines available at affordable prices
to poor people through Jan Aushadhi stores.
- But, doctors don’t prescribe generic medicine (due to heavy commission paid by the Pharma
companies for prescribing patented drugs),
- Most poor people don’t have awareness about what is a generic medicine? They do not demand
any alternative / cheaper prescription from the doctor. (ग़रीब मरीज़ों को पता ही नहीं कि जेनेरिक दवाईयां क्या
होती है? वे तो डॉक्टर और कै मिस्ट द्वारा बतायी गई महँगी ब्रांड की दवाई आंखें बं द करके ले लेते हैं।)
- Patient will simply buy whatever is prescribed by the doctor and given by the chemist.
- Besides, such Jan Aushadhi stores are not available in every village and town of India.
- Thus, although we have a scheme, but not enough beneficiaries getting the best out of it, due to
lack of awareness about the generic medicine itself. (इसलिए ग़रीब मरीज़ों में जागृति ज़रूरी।)
42.4.3 🙋‍♂️🤝🦁 PPL-Awareness- immunisation programs (टीकाकरण)
- 2014: Health ministry launched mission indradhanush to provide 100% immunization coverage
against 7 diseases.
- In 2024-25 we are still far away from the target achievement. This is not only because of the lack
of awareness but also because of the misinformation prevailing among some people
- Religious opposition to polio vaccination (धार्मिक कारणोंसे विरोध)
- Fake news connecting random child death with vaccination, esp. in Measles-rubella. (अफ़वाह)
42.4.4 🙋‍♂️🤝🦁 PPL Involvement- Micro-irrigation sprinklers (सूक्ष्म-सिंचाई)
- PM Krishi Sinchai Yojana: subsidy given to buy micro irrigation systems, drip irrigation,
sprinklers etc.
- Yet, not adopted by all farmers, because damage by wild animals’ trampling not covered,
- repairmen not easily available.
- Shows, farmers input / participation not taken in designing the scheme.
42.4.5 🙋‍♂️🤝🦁PPL Involvement- LPG scheme
- Petroleum ministry has launched Pradhan Mantri Ujjwala Yojana (PMUY) to provide Free LPG
connection to BPL women.
PMUY DATA FOR 2021–22
TOTAL BENEFICIARIES 9.34 crores
HOW MANY CAME FOR ONLY 1 REFILL?
1 crore
(के वल एक बार सिलेंडर भरवाया)
HOW MANY DIDN’T COME FOR REFILL (एक बार भी नहीं) 92 lakh
Reason:

- Even after the government subsidy, the price of cylinder is unaffordable for them.
- While the gas distribution agency is supposed to give them loan/instalment facility to buy the
refill cylinders, But the process is so cumbersome that many beneficiaries feel discouraged.

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- remote location / migratory nature of work. While Government has updated the norms to make
it easy for the migrant workers to get LPG connection, but still ground reality yet to improve in
certain parts of India.
42.4.6 🙋‍♂️🤝🦁 PPL-Participation: subsidized meal for workers
In 2017, the government of Gujarat launched Shramik Annapurna Yojna, where labourers will be
given meal at a subsidised rate of ₹ 10, mainly targeting the construction workers in urban area.

Meal consisted of five rotis, mixed vegetable, dal and rice.

- However, the scheme failed to elicit a great response from the workers because:
- The migrant workers from Rajasthan prefer thicker rotis of wheat / corn, But here the 5 rotis
were very thin and small- which are barely sufficient to satiate the appetite for clerical / desk job
worker. (इस बिल्डिंग मज़दूरों के लिए सस्ते में दोपहर का भोजन मिले ये योजना विफल क्योकि मज़दूरों की राय नहीं ली गई नहीं
किस प्रकार का खाना पसं द है।)
- The migrant workers from Southern Gujarat’s tribal belt, prefer more rice but here the quantity
of rice was insufficient, in the pretext that ‘5 rotis’ are given so we cannot give u more ‘rice’.
- Taste was also not spicy enough for their appetite.
- Thus, workers not consulted in designing the menu → scheme failed to take off.
42.4.7 🙋‍♂️🤝🦁 PPL participation: more Points
- Nowadays many welfare schemes have been modified into demand-driven ‘schemes’ e.g.
MGNREGA or Mudra loans.
- On one hand we have schemes and legal rights where poor people proactively demand their
entitlements- such as MGNREGA, subsidized food at PDS Shops, 25% reservation for
economically weaker section in private schools, homes under Pradhanmantri Aawas Yojana or
toilets under Swachh Bharat mission.
- But on the other hand, for many schemes, funds remain partially unutilized and are returned at
the end of financial year. This is particularly seen for the scholarship schemes, skill development
schemes and loan schemes meant for the Minorities, ST and PH. - because either beneficiary is
unaware or the entitlements are not suitable to his real life requirements. (कई योजनाओं में बजट में
जितना पैसा दिया जाता है उसमें बहुत सारा पैसा मार्च महीने के अंत में बिना ख़र्च हुए वापस वित्त मंत्रालय में जमा हो जाता है। इसका
मतलब कि लाभार्थियों उस योजना का इस्तेमाल करने के लिए आयी ही नहीं थे। शायद लोगो को योजना के बारे में पता नहीं था, या फिर
कि वो योजना लोगो ज़रूरतों के अनुरूप नहीं थी।)
42.4.8 🙋‍♂️🤝🦁 Conclusion - scheme participation (निष्कर्ष)
- SDG Goal1: 0 poverty, 2: zero hunger; Goal3: Health, 5: gender equality; 8: Decent work and
economic growth by 2030. Etc.
- We can’t accomplish any of these goals unless vulnerable people are actively consulted in
designing the scheme and made aware about their rights. OR
- If vulnerable sections of society are not helped by the State, it not only harms our human
development but also catalyses the forces of secessionism and terrorism & provides them with
easy recruits (कल्याणकारी योजनाओं में लोगों की भागीदारी अगर बढ़ायी नहीं गई तो न सिर्फ़ मानव विकास को खानी होगी,
बल्कि उग्रवादियों और आतंकवादियों के द्वारा ऐसे युवाओं को भ्रमित कर देश विरोधी कार्यों में शामिल भी किया जा सकता है)
- so we must leave no stone unturned for awareness and involvement of people in schemes.

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42.4.9 🙋‍♂️🤝🦁 Mistakes in scheme participation ans.
- Discussion points should be confined only to welfare schemes. Do not digress to other areas of
polity- like uniform civil code, Article 370 removal etc.
- Examples / case studies necessary for 250 words else your points will become repetitive.
- Logical order: you’ve to touch both aspects 1) people are not aware about scheme 2) people not
consulted in designing the scheme. Many candidates would have talked only about #1.
42.5 PARTICIPATION: DONOR AGENCIES NEED TO CONSULT WITH LOCAL PUBLIC
- (Data) In India, hardly 2% voters pay Income Tax. And there is shortage of 11 lakh officials in
the union govt- as per the report of DoPT in 2022. Thus, government does not have enough
money OR manpower to carry out all the development activities and therefore reliance on local
and global donor agencies is inevitable. (ना टी कें द्र सरकार के पास इतना वित्तीय बल है या मानव बल की सारी
योजनाएं ख़ुद के दम कर सके - बिना विदेशी सं स्थाओं से दान चंदा दिए।)
- (Origin) After the end of second world war, many international organisations became proactive
in helping poor and developing countries in loan, health, education etc. Notable able among
them are- World Bank (1944), UNESCO (1945), World Health Organization (WHO) (1948),
United Nations Children's Fund (UNICEF) (1946), UNESCO (1945) etc. (द्वितीय विश्व युद्ध के बाद ग़रीब
देशों को कर्ज़ा शिक्षा स्वास्थ्य आदि की मदद के लिए काफ़ी अंतरराष्ट्रीय सं स्थाओं का उद्भव हुआ है।)
- Post-1991 LPG reforms, even private funded donor agencies have also become active in India.
Example Bill and Melinda Gates foundation, Ford Foundation.
- Indian entrepreneur led foundations have also became more active - such as Tata Trust, Azim
Premji Foundation (WIPRO), Reliance Foundation (Nita Ambani) etc.
- however, some of these organisations have failed to meet the expected outcomes of the projects,
due to lack of consultation with local community. Example:

42.5.1 World Bank Western Ghat project

World Bank's Watershed Development Project in the Western Ghats (1991-2001) to improve water
management and reduce soil erosion in the Western Ghats. Did not deliver optimal result Because:

 designed by foreign experts, with little or no / little input from local communities.

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 focused on technical solutions for water scarcity, such as building dams and canals, rather than
on addressing the underlying causes such as deforestation and overgrazing. (ज़मीनी स्तर पर लोगों की
समस्याओं को समझे बिना तकनीकी रूप से डैम या कै नाल बनाने से ही सं तोष मान लेते।)
 implemented in a top-down manner, with little or no consultation with local communities.
 local communities were suspicious of the project, as they had been burned in the past by
government programs that had failed to deliver on their promises.
 The project staff were not familiar with the local culture and language, and they did not make an
effort to build trust with the local communities. (स्थानीय रीति रिवाज़ और भाषा से अपरिचित।)
42.5.2 UNICEF WASH Initiative
 1997 onwards: UNICEF's WASH initiative in India to improve access to safe water, sanitation,
and hygiene (WASH). Did not yield optimal result because
 They looked at the open defecation as “infrastructure problem”, but not adequate attention to
changing the ‘behavioural aspects’- by using local leaders/influenzers. (विदेशी विशेषज्ञ भारत में खुले में
शौच को यह के वल शौचालय की कमी की भौतिक समस्या के रूप में देखते हैं। भरतियों के आदत/व्यवहार को भी बदलने की ज़रूरत है
उस पर ज़ोर नहीं देते।)
 UNICEF built toilets that were not always connected to a water supply OR built in areas that
were not located in a convenient place. So, people continued to practice open defecation.
UNICEF should have used local community for social audit. (के वल शौचालय बनाना काफ़ी नहीं वहाँ पर पानी
की भी सुविधा होनी चाहिए जिस पर यूनिसेफ़ ने ज़्यादा ध्यान नहीं दिया था।)
42.5.3 Polio campaign failure in Pakistan and Afghanistan (पोलियो टीकाकरण)
Bill and Melinda Gates Foundation's (BMGF) funded Polio vaccination projects in Afghanistan and
Pakistan. Failed to pick up because of

 1) religious concerns over vaccine made using pig fat, which is haram in Islam.
 2) false propaganda that it makes the boy impotent (लड़का नपुंसक हो जाएगा)
 3) CIA uses it for spying on (terrorist) leaders. (हमारे आतंकि आकाओं की जासूसी होगी)
 This propaganda could have been averted if local community was involved, instead of ‘top-down’
approach of sending vaccine workers. (इन झूठे प्रपंच के चलते स्थानीय लोग टीकाकरण-विरोधी हो गये।)
42.5.4 Akshaya Patra Foundation mid day meal Dalit Cook
 Akshaya Patra Foundation is given the responsibility in some states to implement the mid-day
meal in school.
 Every once in a while, there are negative news about how parents refusing to send children
because food is cooked by a SC cook.
 This can be easily prevented by taking the parents in confidence before hand with the help of
local community leaders and religious leaders.
42.5.5 CSR quick fix/bandaid solutions (सीएसआर के जुगाड़ू/मरहम-पट्टी उपायों से क़ायमी इलाज नहीं)
 Companies Act require big companies to spend 2% of their average profits on CSR activities.
Usually companies donate this money to some foundation (usually owned by wife / mother of
the owner of the company) and then foundation will carry out the welfare projects.
 Sometimes, such projects fail to deliver desired result, because they try to deliver quick fix
solutions without consulting local community: e.g.

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 widening & deepening the river with bulldozer to address the drought problem.
 planting trees to address the drought problem.
 But fixing drought requires long-term engagement with a community to change the way they
consume and conserve water for irrigation, animals and household use. (बुलडोज़र द्वारा नदी/तालाब को
और गहरा करने से पानी की क़िल्लत कम नहीं होगी, जब तक लोग पानी बचाने के लिए अपनी आदतों को न सुधारें।)

42.5.6 ✍️ Conclusion: Donor agencies need to consult with local public

TEMPLATE KEYWORDS (जन भागीदारी/ जनता से विमर्श ज़रूरी)
Government does not have enough money / manpower to carry out all the
X THING IS IMP welfare activities by itself. So, reliance on donor agencies and Private
foundations becomes inevitable.
Y THING CREATING Donor agencies not consulting with local community in effective manner-
PROBLEM resulting into suboptimal project outcomes
IT WILL HELP IN A SDG Goals related to health, hunger, Women empowerment and
LONG WAY TO environment conservation.

42.6 👳‍♂️🤕 ES19: GDP GROWTH HARMED DURING ECONOMIC POLICY UNCERTAINTY

Global Economic Policy Uncertainty Index (GEPU or EPU: आर्थिक नीति अनिश्चितता सूचकांक) index Started
in 2016, by three US-based economists—Scott Ross Baker, Nick Bloom and Steven J. Davis.
 They capture countries’ newspapers’ headlines related to economic policy uncertainty, and then
rank the nation accordingly. (अखबार की सुर्खियों को देखकर पता करना के सरकारी नीतियों में अनिश्चितता कितनी है)
 2011-12: economic policy uncertainty was the highest in India.
 2G Scam, Coal allocation scam, Subprime Crisis, Global Financial Crisis.
 During this time, govt did not take the corporate friendly reform decisions or reverted its
original decisions fearing the media scrutiny, judicial scrutiny, protest by the labour unions.
 2016-17: ↑ due to Demonetisation, GST. But during this stage it was not as bad as the
uncertainty during 2011-12.
 From 2014 onwards India’s EPU has declined although in a zigzag manner with occasional
spikes during Demonetization - GST etc. Whereas Global EPU has ↑ - due to the Policies
pursued by Donald Trump, BREXIT, Iran, N.Korea, OPEC, Trade war between USA and China
etc. (हालांकि विश्व में आर्थिक नीति अनिश्चितता बढ़ी लेकिन भारत में उतनी ज्यादा नहीं बढ़ी)
 During high EPU: domestic investors hold up their decision to invest into financial market. They
prefer to invest in gold (=adverse BoP, high CAD); land / real estate (=Black money). FPI inflows
↓ during are volatility of exchange rate. (अनिश्चितता में बैंकों में बचत में कमी और विदेशी निवेश में कमी)

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 However, the relationship between FDI growth and volatility of exchange rate is weak. Because
Foreign Direct Investors are entering a market for long term. They look at multiple factors
beyond just the exchange rate. They look at taxation, monetary policy, consumer sentiment etc.
all which are reflected by EPU.
 Low growth of FPI, FDI = Corporates are deprived of the new capital from the domestic and
foreign investors → it affect the factory expansion, job creation and GDP growth.
42.6.1 📔📔 ES19: How to reduce Economic Policy Uncertainty
↓ economic policy uncertainty is critical for both domestic investment and foreign investment.
Therefore, ES19 suggested following reforms: (निवेश में बढ़ोतरी के लिए आर्थिक नीतियों में निश्चिता जरूरी)
42.6.1.1 Make Policies predictable (पूर्वानुमान करने योग्य)
Top-level policymakers must ensure that their policy actions are predictable. E.g.
 From which date Bharat Stage emission norms will become effective?
 From which date GAAR or E-Way Bill will become effective?
 2016-Budget proposed to impose income tax on the money withdrawn by subscriber from his
EPFO fund. Later, due to labour unions backlash, rule was reverted.
 2019-Budget proposed to hike surcharge on the income tax of super-rich, then due to a backlash
by foreign investors, it was reverted. (विदेशी निवेशक को के विरोध के चलते निर्णय वापस लिया)
 2021- Finance Ministry ↓ ↓ interest rates on various small saving schemes (Ref Pillar1D3) But
within a day, fearing public outcry (& Bengal election), FinMin withdrew decision. [पहले लघु बचत
योजनाओं के ब्याज दर में कटौती की घोषणा की लेकिन फिर एक ही दिन में निर्णय को वापस लिया!]
 2023-July: 20% Tax collected at source (TCS) on credit card payments during Overseas travel.
This rule was to be effective from 1st July but after resistance from bankers, postponed till 2023-
Oct. To learn more about this, watch https://www.youtube.com/watch?v=uJhZRIKinFs
 Aadhaar-PAN link deadline has been repeatedly extended in the past.
 2024: customs duty on imported lab chemicals: hiked to 150%, Then, after the protest by
scientists reverted back to 10%.

42.6.1.2 Keep consistency in promises (वादों में सामंजस्य / निरंतरता रखिये)

Government / Regulators should maintain broad consistency in actual policy with the forward
guidance. They should reduce ambiguity/arbitrariness in policy implementation. E.g.
 2018-Dec: Monetary policy Committee keeping “Calibrated Tightening”. Means in the next
meeting they would either ‘hold', or 'increase' repo rate. No chance of cutting the repo rate. Yet
in 2019-Feb, they cut the repo rate. (मौद्रिक नीति के रुख़ को पिछली प्रेस विज्ञप्ति के विपरीत बदल दिया जाता )
 Similarly, Govt should avoid changing the goalposts and deadlines of Fiscal Responsibility and
Budget Management (FRBM) Act. (राजकोषीय घाटे के लक्ष्यंको को भी बार-बार बदल दिया जाता है)

42.6.1.3 Policy implementations must be monitored (अविरल निगरानी)

 “What gets measured gets acted upon”. Therefore, Government must monitor its performance in
the Economic Policy Uncertainty Index on a quarterly basis. We should construct India-specific
sub indices of economic uncertainty To monitor our performance.

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 The actual implementation of policy occurs at the lower levels, where ambiguity gets created and
it compounds the economic policy uncertainty.
 Therefore, staff should be trained and implementation processes should be certified (by NITI etc)
before implementing a policy. (सरकारी कर्मीऑ को नीति निर्माण और उसके अमल की तालीम दी जाए)
 Poorly drafted laws full of ambiguities, amendments, clarifications and exemptions = endless
litigation. E.g. Provisions related to Capital Gains Tax in the IT Act 1961: Vodafone-Hutch
case. (जब क़ानून ही ठीक से नहीं लिखा गया हो, तो काफ़ी दुविधाएँ उत्पन्न होती है, और मुकदमेबाजी शुरू होती है। उदाहरण के रूप
में वोडाफ़ोन कं पनी को दिया गया इनकम टैक्स विभाग का नोटिस।)

42.6.1.4 Respect boundaries (एक दूसरे की सीमाओं का सम्मान कीजिए)

 Judiciary, legislature and executive should respect each other's boundaries. Executive and
legislature should not create a vacuum which could encourage Judicial Overreach such as
firecracker ban, plastic ban, or no selling of liquor on highway hotels, which may create new
challenges in economy. (न्यायिक अतिविस्तार के चलते उद्योगों में अनिश्चितता। कोर्ट ने सरकार के काम में अनावश्यक दख़ल
नहीं देना चाहिए।)

42.6.2 ✍ 🏻 Conclusion: Policy Uncertainty

 Indian faces economic uncertainty from many fronts which are beyond our control e.g. Poor
monsoon, BREXIT, OPEC Oil cuts, Geopolitical disturbance in the Ukraine, Korean Peninsula
and Western Asia (Iran, Palestine), Protectionism and tariff wars.
 While policymakers can not control above ‘economic and diplomatic uncertainties’, they can
definitely control economic policy uncertainty. (आर्थिक और कू टनीतिक अनिश्चितता को तो हम कम नहीं कर सकते
लेकिन नीति की अनिश्चितता को कम करना जरूरी- तभी निवेश और आर्थिक वृद्धि में मदद होगी।)
 Successive economic surveys have found that greater private investment is necessary for
economic growth in India. EPU can spook investors and spoil the investment climate in the
economy, therefore Government must strive for 100% policy certainty on the economic fronts.
🎓📘 📘 Homework: IF U've time then read Economic Survey 2018-19 Vol1 Ch6 Read Introduction
upto Bullet 6.2. Then, read Conclusion from Bullet 6.22.

43 🙍‍♂️M ACRO INDICATORS → UNEMPLOYMENT (बेरोज़गारी)

43.1.1 📕ES24: DATA-Unemployment data

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43.1.2 📕ES24: DATA-Sectoral composition
Sector Percentage of Workforce Number of Workers (in Crore)
Agriculture 45.0% 25.43
Manufacturing 11.4% 6.44
Services 29% 16.33
Construction 13.0% 7.35
Total ~100% 56 cr

43.1.3 👷🏻‍♂️📈 India Employment Report 2024

• was released by the International Labour Organisation (ILO) and the Institute of Human
Development (IHD, a not-for-profit organization).
• The manufacturing and service sector is not creating enough jobs to absorb the workers from
agriculture. (पर्याप्त नौकरियां उत्पन्न नहीं हो रही है ग़ैर कृ षि क्षेत्र में।)
• 90% of the workforce is informally employed without job security or social security. (नौकरी की
सुरक्षा और सामाजिक सुरक्षा का भाव।)
• 70% of workers earn less than minimum wages. (न्यूनतम वेतन नहीं)
• Wages have remained stagnant or declining (after adjusting for inflation) from 2012 to 2022.
(वेतन में वृद्धि नहीं हो रही।)
• The production process has increasingly become capital-intensive and labour-saving
machinery. (मशीन से ज़्यादा उत्पादन हो रहा।)
• Worker migration rates will increase to 40% by 2030 because Bihar, Uttar Pradesh, Odisha,
Madhya Pradesh, Jharkhand, and Chhattisgarh have not created enough jobs for their
residents. (पलायन बढ़ रहा है क्योंकि इन राज्यों ने रोज़गार के अवसर पैदा नहीं।)

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 • The unemployment rate is much higher among the educated youth than among the
illiterates. Because educated youth want white-collar jobs, but white-collar jobs are not
increasing at a rapid rate. (शिक्षित व्यक्तियों में बेरोज़गारी ज़्यादा। अनपढ़ तो मज़दूरी के लिए तैयार हैं)

43.1.4 🙍‍♂️Unemployment Major Reasons: (बेरोजगारी के प्रमुख कारण)

 Slow Economic Growth vs Rapid Population Growth. आबादी की वृद्धि के सामने आर्थिक वृद्धि कम
 Defective Educational System, Lack of skill / employability.[शिक्षा प्रणाली, कौशल्य की कमी]
 Lack of Banking/Transport/Communication Infrastructure in some areas → people unable to
pursue educational and economic goals [बैंकिं ग, सं चार, परिवहन कि बुनियादी अवसं रचना की कमी- इसलिए कु छ
गरीब लोग शिक्षा और आर्थिक अवसर ढूँढ नहीं पाते]
 Social Factors- discrimination against SC/ST/Women/PH. [कमजोर वर्ग के खिलाफ़ भेदभाव]
 (More in 📑Pillar#6: HRD- Education, Skill, Poverty)
43.1.5 📕ES24: Demographic TIME-bomb is ticking. Need 78.5 lakh jobs per year
• 65% of India’s fast-growing population is under 35,
• India’s working-age population (15–59 years) will continue to grow until 2044
• Indian economy needs to generate nearly 78.51 lakh jobs annually until 2030 in the non-
farm sector to cater to the rising workforce. (आज से लेकर 2030 तक गैर-कृ षि क्षेत्र में प्रतिवर्ष 78.5 लाख
नौकरिया खड़ी करनी होगी)
• Barely 51.25% youth is deemed employable. That means about one in two persons are not yet
📕
readily employable, straight out of college.- said ES24 ( कॉलेज से पास होने वाले प्रत्येक दो में से एक
छात्र के पास नौकरी योग्य कौशल्य नहीं है।)

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 • if government does not take action → many farm workers / rural youth may shift to
construction jobs but they are largely informal and low-paid → does not help removing
poverty. (सरकार सही कदम नहीं उठाएगी तो ज्यादातर खेत मजदूर शहरों में इमारत निर्माणके लिए चले जाएं गे जहां अच्छे
वेतन नहीं मिलते यानी गरीबी खत्म नहीं होगी)
Government initiative Jobs target
PLI scheme for manufacturing 60 lakh jobs
Solar and wind energy 34 lakh new jobs
MITRA Textile Parks 20 lakh jobs

43.2 JOB CREATION HOW TO DO? (रोज़गार सृजन कै से करें?)

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43.2.1 👛
Budget-2024: EPFO -ELI (employment linked incentive scheme)
• Ref: Pillar1D Prelims handout.
43.3 📕🥤 ES24-J OB CREATION IN FOOD PROCESSING
• In India, hardly 4.5% of fruits/veggies processed. In contrast, 30% food is processed in China
60–80% Western countries (भारत में कृ षि उत्पाद का प्रसं स्करण चीन और पश्चिमी देशों के मुक़ाबले काफ़ी कम है)
• Agriculture and related industries remain the mainstay of the rural economy.
• So, If we can shifting MGNREGA labour to food processing → it’ll decrease government’s
budgetary burden. (यदि मनरेगा मज़दूरों को खाद्य प्रसं स्करण कं पनियों ने लगाया जाता है तो सरकार के लिए मनरेगा
योजना का वित्तीय बोझ कम होगा।)
• Food-processing can also accelerate crop diversification in areas such as Punjab and
Haryana, where paddy(rice) cultivation leading to groundwater scarcity.(फ़सल विविधीकरण को
प्रोत्साहन मिलेगा वरना पंजाब हरियाणा में हर किसान चावल उगाता है तो भूजल की कमी हो रही है।)
43.3.1 📕🥤 Job creation in Food processing with bottom-up approach
Success Story of ‘Bottom up’ Location
• 95% of its associated farmers owning less than one
hectare of land.
Sahyadri Farmer Producer Company
• 1300 full-time jobs,4000 seasonal jobs.
@ Maharashtra
• India’s largest exporter of fresh grapes tomatoes,
mangoes, sweet corn, and cashew nuts.
Araku Coffee plantations @ Andhra by tribals
Mahagrapes @Maharashtra by Mahindra Agro
Synthites spice-processing group @ Kerala
• 📕ES24: better to let the private and cooperative sector take the lead in creating jobs in the
food processing sector-instead of running too many central government schemes from ‘top-
down’. (कें द्र के बाबुओंने दिल्ली में बैठके बनायी योजनाओ से बहतर की भूमिस्तर पे ही निजी व् सहकारी क्षेत्र की द्वारा
नौकरियां खड़ी की जाएं ।)
• Such local units can supply the processed food to Aanganwadis, mid-day meal in schools,
urban consumers and e-commerce sites.
43.3.2 📕
🧑🏻‍🦽‍➡️ ES24: Jobs creation in care economy (देखभाल अर्थव्यवस्था)
• care-economy = babysitter,nurse,caretaker,cook etc for children, PH, elderly.
• Such jobs increased due to (1) nuclear family with both working parents (2) ageing
population. (विभक्त परिवार और बूढ़ी हो रही आबादी के चलते नर्स आया देखभाल करने वाले आदि की मांग बढ़ रही है)

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43.3.3 📕ES24: overtime & work hrs discourage MNCS in India
Factor India other Asian economies
100% of normal 50% of normal wages in China, Vietnam, Thailand,
Overtime payment
wages Malaysia.
Working Hours 11hrs (Bangladesh), 12 (Vietnam), No Limit (China,
10.5hrs in India
limit Indonesia )
Thus, India’s stricter overtime wage regulations are hindering the growth of the manufacturing
sector, by driving production to nations with lower overtime costs.
43.3.4 📕 ♨️ ES24: worker productivity- Global warming harming
Year Working hrs Lost to Heat Equivalent Full-Time Jobs Lost Economic Losses
2030 3.8 % of working hours 136 million Jobs 2,400 Billion $
• India is one of the most vulnerable countries to heat related productivity losses bcoz (1) high
share workers in agricultural and construction jobs working outdoors in heat (2) location
within the tropical latitude = more humidity/heat felt.
• 70% of world’s workforce will suffer health hazards. - Need to develop insurance products to
protect their health and incomes from the vagaries of heatwaves, floods, cyclones, etc.
• 2023: SEWA-NGO launched a heat-linked insurance covering 22,000 unorganised workers.
Benefit? partial wage payment when temperature breaches 43.6 Degree C.
• (जलवायु परिवर्तन और बढ़ती हुई गर्मी के चलते मज़दूरों की उत्पादकता कम हो रही है इसके वास्ते ख़ास क़िस्म के बीमा प्रोडक्ट
बनाने की ज़रूरत।)
43.4 🛵 Underemployment vs Unemployment?
(PYQ-IEconS-2022) “India has a worse underemployment problem than unemployment.” Discuss
(“भारत में बेरोजगारी से भी बदतर समस्या अल्परोजगार की है।”)
43.4.1 🛵Underemployment refers to
• (A) A situation in which individuals employed in jobs lower than their academic
qualifications / skill set / work experience. e.g. postgraduate person working as food delivery
boy. Dentist store, Ayurveda Dr doing clerical job in government Dept.
• (B) A situation where people employed part-time or on a temporary basis when they would
prefer full-time, permanent work. ILO Definition: a person employed for less than 40 hours a
week is underemployed. E.g. food delivery boy, data entry operators in government dept.
• (जब व्यक्ति को उसकी शैक्षणिक डिग्री/ अनुभव से कम योग्यता का काम मिलता है, या फिर हफ़्ते में 40 घं टे से कम का काम
मिलता है तो वो अल्प रोज़गार से पीड़ित है।)
43.4.2 Underemployment : negative impact

43.4.2.1 On economy: (अर्थतंत्र पर नकारात्मक असर)

• Waste of the demographic dividend. Can’t achieve the fullest potential of GDP growth,
despite having academically qualified workers. (जनसांख्यिकीय लाभांश और जीडीपी का महत्तम सं भवित स्तर
हासिल नहीं कर सकते।)

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 • Railway gangmen and similar group-D jobs require the employee to work outdoors in the
harsh summer for long hours doing physically laboring tasks of track maintenance.
• Post-graduates / PhDs who have spent their lives in the comfort of AC libraries are not cut
out for it. They cannot give 100 percent to such physical labour tasks. And their
slack/laziness affects the departmental output. (रेलवे ट्रैक के गैंगमैन को तपती गर्मी में लंबे घं टों तक मज़दूरी
करनी होती है। बोहोत पढ़ा लिखा व्यक्ति जिसने अपना सारा जीवन वातानुकू लित पुस्तकालयों में बिताया है, वो काम पूरा कर नहीं
पाता, और वह रेलवे की क्षमता को कमज़ोर करता है।)
43.4.3 On family & society: (परिवार और समाज पर नकारात्मक असर)
• When individuals are employed in positions that don’t align with their career goals and
professional aspirations, they become depressed and demoralized.
• They want to cover up their pay gap with shortcuts. They are easy targets for betting
gambling apps, futures and options market speculation etc. Which drags them into a
downward spiral of loan sharks and suicide.
• They cannot invest in the education and health of their offspring due to low-paying jobs,
despite having a higher skill set.
• Family members are deprived of insurance, pension, and other social Security benefits,
creating new set of problems. (Ref 1D)
• And all this negativity also affects their marital life and relationship with their children:
domestic violence, childabuse, and increased divorce rates.
43.4.4 Underemployment : Reasons & Remedies (अल्प रोज़गार के कारण और उपाय।)
Reasons Remedies
Degrees not giving permanent and well-paying
Need to promote medical tourism and wellness
jobs, hence the rush for even clerical jobs in
tourism to increase the demand for such doctors
the government. e.g. dentist, Ayurveda
from foreign patients.
doctors.
Updating the syllabus, making their college
Engineers settling for gig work, food stalls
syllabus ready for the industries, AI, etc., with
because they’re unable to find jobs in good
practical application-oriented chapters and
private companies; there are no campus
internship /apprenticeship.
placement recruitment drives in their small-
Improving the start-ups and entrepreneurship
town colleges.
culture, particularly in eastern India.
Filling up the vacant faculty positions in the
PhD scholars in low paying jobs
government colleges.
Post-grad women doing primary school
teaching, data entry operator, et cetera because
Society needs to change its patriarchal mindset.
their husband’s family doesn’t want them in
transferable jobs in another city.
✍️ Conclusion: link with “ we must utilize our demographic dividend for 2047 development target.”
(जनसांख्यिकीय लाभांश और २०४७ तक विकसित देश बनने के लक्ष्य को हासिल करने के लिए अल्प रोज़गार की समस्या से लड़ना ज़रूरी।)

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43.5 STRUCTURAL UNEMPLOYMENT & DATA COLLECTION METHODOLOGY
PYQ-GSM3-2023: Most of the unemployment in India is structural in nature. Examine the
methodology adopted to compute unemployment in the country and suggest improvements. (भारत में
सबसे ज्यादा बेरोजगारी प्रकृ ति में सं रचनात्मक है। भारत में बेरोजगारी की गणना के लिए अपनाई गई पद्धति का परीक्षण कीजिए और
सुधार के सुझाव दीजिए) (15 marks, 250 words)
43.5.1 Intro
• (Definition:) structural unemployment occurs due to Lack of jobs when person’s
skill/qualification is insufficient for the jobs available in the market (जब व्यक्ति का कौशल, बाज़ार की
माँग के अनुरूप नहीं है उसे सं रचनात्मक बेरोज़गारी कहते है।)
• (Origin) in India, unemployment related data is survey / published by National Statistical
Office (NSO)
• (Data) in the last 3 years (2020-21, 2021-22, 2022-23) unemployment rate % has been 4.2%,
4.1%, 3.2% respectively.
43.5.2 Body- present system of unemployment calc.
• Since 2017: we’ve replaced Quinquennial Employment and Unemployment Surveys (5–5
years) WITH annual Periodic Labour Force Survey (PLFS आवधिक श्रम बल सर्वेक्षण)
• PLFS covers both urban & rural, agro & non-agro covered. (शहरी ग्रामीण कृ षि ग़ैरकृ षि सभी का सर्वेक्षण)
• Unemployment status is divided into 3 types: 1) Current Weekly Status, 2) Current Daily
Status, and 3) Usual Status. Depending on how many days the person was unemployed.
43.5.3 Body: Reform in questionnaire- by ILO (प्रश्नावली में सुधार किए जाए।)
• after persons says, “I’m unemployed”, more ‘recovery questions’ need to be asked e.g. (यदि
व्यक्ति कहता है वो बेरोज़गार है तो फिर सत्यापन के लिए उसे और भी प्रश्न पूछें जाने चाहिए।)
• “whether the person helped in the family business”
• “whether the person worked in own business in last one week/year”
• “whether person helped the family with job”.
• ILO found that upon probing, which such questions, there is 8% difference in the data.
43.5.4 Body: Reform in methodology- women LFPR (महिलाओं का श्रम बल भागीदारी दर।)
• PLFS survey does not count women who are doing (UNPAID) domestic duties including
free collection of goods (vegetable, firewood, cattle feed, etc.), tailoring, etc. for household
use” (बिना वेतन लिए एक महिला जो परिवार का काम करती है उसे नहीं गिना जाता।)
• PLFS doesn’t count them as ‘workers’
• otherwise, India’s female LFPR: 32.5% (2020–21) but after adding above unpaid workers and
it becomes 46.2%
• Both ILO and Economic Survey 2023 recommended fixing this.
43.5.5 Body: timely release and publication (समयसर/ नियत समय पर प्रकाशन हो।)
• earlier few members of the national statistical commission, resigned alleging that Govt is not
releasing the PLFS report because of the election season.
• So labour ministry needs to announce an annual calendar and stick to it.
• otherwise, it creates backlogs/laxity in the future data collection by surveyors, if past data is
not released on time.

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43.5.6 Body: implement committee report (समितियों की रिपोर्ट पर अमल हो।)
• 2023: Government had setup a Standing Committee on Statistics (SCoS) under Pronab Sen
for examining economic indicators including labour force statistics.
• When this committee submits the report, it should be prevented on priority basis.
43.5.7 ✍️
Conclusion: yes need to do it.
• without accurate data, impactful policies/ schemes schemes cannot be created.
• so need of the hour is to fix lacunas in unemployment estimation, for reaping the
demographic dividend.

43.6 👷‍‍FEMALE LFPR: L ABOUR FORCE PARTICIPATION RATE (महिला श्रम-बल भागीदारी दर)

% Female LFPR (all ages) 2004 2017 2018 2019 2020 2022-23
Urban+Rural=All India 45% 17 19↑ 23↑ 25 ↑ 37% ↑
From 2004 to 2017, LFPR (Female: rural+urban) steadily declined ↓ (from 45% to 17%) because-
 ↑ women pursuing higher studies → their entry in the job market is delayed.
 ↑ in income of (some) rural men → their wives have stopped working as labourer and just
playing domestic housewives role.[कु छ ग्रामीण मर्दों की आमदनी बढ़ी तो पत्नी की नौकरी बं द करवाई]
 ↑ mechanization of agriculture & animal husbandry → ↓ demand for female agri workers.
 ↓ textile/leather exports due to US/EU protectionism → ↓ demand for female workers
 ↓ real estate sales → ↓ construction of new buildings → ↓ female laborers
 Cultural factors, social constraints and patriarchal norms restricting mobility and freedom of
women. (सांस्कृ तिक कारक, सामाजिक बाधाएं और पितृसत्तात्मक मानदंड के चलते महिलाओं की आजादी पर पाबं दी)
 Many rural / small-town girls don’t have require knowledge of computer and English to get jobs
in emergent startup sectors. (अंग्रेजी और कं प्यूटर ज्ञान की कमी)

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 NSO's Time Use Survey, 2019 reported that females spend relatively more time in unpaid
domestic and caregiving activities (7.5 hours) than in paid/employment activities (5.7 hours) per
day. (महिलाएँ रोज़गार से ज़्यादा समय घरेलू अवैतनिक कार्यों में बिताती है)
 Examples of unpaid domestic activities = taking care of children, elderly in the household,
Cooking, cleaning home etc. (जैसे की बच्चे और बुजुर्गों की देखभाल, रसोई, साफ़ सफ़ाई)
 Solution? Government should invest in child care / day care facilities, paid parental leave, family-
friendly work environment, and elderly care facilities, Equal pay and career progression for
women, medical and social security benefits for female workers. If these things are not available
then there will be more family pressure on the women not to do the job and take care of the
house. (सरकार ने ऐसी सुविधाएँ प्रदान करनी चाहिए जहाँ नौकरीशुदा महिलाओं के बच्चे और बुजुर्गों की देखभाल की व्यवस्था हो,
महिलाओं के लिए वेतन तथा पदोन्नति में पुरुषों के समान अवसर उपलब्ध हो, अन्यथा परिवार की तरफ़ से महिला पर नौकरी की जगह
घर की देखभाल का बोझ का दबाव ज़्यादा रहेगा)
Solution to improve LFPR? [कै से इज़ाफ़ा / बढ़ोतरी करें?]
 Government schemes for skill development and entrepreneurship among women → 📑Ref:
Pillar6-HRD → Women empowerment. (महिला सशक्तिकरण के लिए विविध कौशल विकास योजनाएं )
 Government should invest in child care / day care facilities, paid parental leave, family-friendly
work environment, and elderly care facilities, Equal pay and career progression for women,
medical and social security benefits for female workers.( नौकरीशुदा महिलाओं के बच्चे और बुजुर्गों की देखभाल
की व्यवस्था, महिलाओं के लिए वेतन तथा पदोन्नति में पुरुषों के समान अवसर उपलब्ध हो)
 If these things are not available then there will be more family pressure on the women not to do
the job and take care of the house. (अन्यथा परिवार की तरफ़ से महिला पर नौकरी की जगह घर की देखभाल का दबाव)
43.6.1 📕👷🏻‍♀️✋ ES24: Job barriers on women by State govts
 10 States prevent women from working overnight, working near heavy machines and hazardous
industries e.g. electroplating, petroleum generation, pesticides, glass, rechargeable batteries etc..
(महिला सुरक्षा के लिए पे कु छ राज्य सरकार महिलाओं को जो रात्रि में नौकरी और जोखमी-मशीनरी के क़रीब काम करने से रोकती
है।)
 This creates obstacle to female LFPR improvement. So we need to implementing more flexible
labour laws to promote gender inclusivity, and attract industrial investment. (ऐसी पाबं दियां महिला
रोज़गार सृजन में मदद नहीं करती बल्कि पाबं दियां खड़ी करती है।)
43.7 GIG ECONOMY IMPACT ON WOMEN WORKERS
 Definition: Gig workers are temporary workers who are engaged in livelihoods outside the
traditional employer-employee arrangement. Delivery boys, app-based taxi drivers, service
providers such as cleaners and technicians, and freelance workers are all part of the gig economy.
(गिग-मज़दूर/श्रमिक - अस्थाई मज़दूर है जो किसी ऑनलाइन मोबाइल ऐप के द्वारा एक स्वतंत्र ठेके दार के रूप में अपनी सेवाएँ देता है
जेसे की जोमेटों एप द्वारा ग्राहक को रेस्टोरेंट का खाना पहुँचाना।)
 DATA: 7.5 million+ workers were engaged in the gig economy in 2020-21, and this number
could grow to more than 20 million in the next 8 year.
Notable gig-works examples-

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- Cab/Tax drivers, delivery agent (food, e-commerce)
- Virtual assistants, helpline operators,
- Freelance content writers, Graphic & ads designers, Social media managers,
- Tutors / educators, on demand at home beauticians, AC-repairman
- Pet sitters, Baby-sitters, caretaker for elderly
Positive impact on women workers Negative / Challenges
Can work from home or on the go, Can lead to long hours and irregular work schedules,
which can be helpful for women with which can make it difficult to balance work and life.
young children / elderly parents /
elderly in-laws.
Can earn more money than in Can be difficult to get started, as there is often no training
traditional jobs, especially if high- or support provided e.g.
demand areas. E.g. personal tutor,
 To become a ola/uber driver, person the needs to
Home visit beautician, on-demand
know how to drive a car and also need to hold a
Maid, on-demand cook, tiffin service, driving license.
home-cooked food service via Swiggy-  To become online tutor, teacher needs to know
Zomato, on demand caregivers for digital software, tools, troubleshooting of
elderly/sick. hardware/software etc. Also needs to grow social
media distribution to get the sales.
 Need a command over English and graphic design to
become a social media manager.
Can choose their own hours and This is not always true ke female gig-worker can choose
projects, which can be empowering her own hour and project e.g. excess number of delivery
boys available in day-time, she may not get orders due to
competition; then in the night she may have to work to
earn the money from deliveries.
Can open up new opportunities for Can lead to discrimination, as women are often paid less
women in male-dominated industries than men for the same work. Lack of social security /
e.g. Taxi Drivers, Courier Boys. EPFO / ESIC type of benefits.
- After the US Fed tempering and funding winter in
the startup companies- many of gig workers laid-off.
Researchers have found that during mass-layoffs,
women worker are more likely to be laid out than
men.
43.7.1 Patriarchal opposition: (पितृ सत्तात्मक विरोध।)
- Opposition by male members of the family – as Working hours are not fixed a delivery boy / ola-
uber driver need to be ready to even work on weekends and in night trips. (छु ट्टियों के दिन और रात को
भी काम के लिए बाहर जाना पड़े तो परिवार द्वारा विरोध।)

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- Sometimes parents oppose fearing difficulty in find a groom because daughter’s gig job is not
‘marriageable-job’ (unlike Teacher, Receptionist, Bank clerk, etc.) ( माता पिता में हिचक की बेटी को शादी
योग्य नौकरी ढूंढनी चाहिए।)
- Random work hours can cause stress/anxiety/depression, as there is often little interaction with
co-workers / family members. E.g. online teachers, Taxi drivers. (इस कार्य के घं टे फिक्स नहीं होते इसलिए
तनाव बढ़ता है।)
- Startup funding winter, intense price wars → companies have reduced amount of commission /
sales bonus / per hour rates paid to gig-workers. Consequently, there could be scenarios where
male family member may force woman to just look after the family and kids instead of doing the
gig work. (आज कल वहाँ पर भी पैसा बहुत कम ही मिल रहा है, तो हो सकता है कु छ पितृ-सत्तावादी परिवार महिला को कहा है कि
तुम के वल कर सं भालो।)
43.7.2 Conclusion – women gig-workers
X thing imp In developed countries, female labour force participation rate (LFPR) for
female tends to be 60-80% or even higher, whereas in India, it is barely 25%.
So if India wants to become a develop the nation by 2047, then we have to
increase LFPR (Female), both for poverty removal (SDG1), Gender equality
(SDG5) and Decent work and economic growth (SDG8)
Y thing aforementioned issues in gig-economy.
challenges
Z thing need of implement the NITI Aayog Report on Gig Workers. <see next section> OR
the hour Address the aforementioned issues for SDG Goals for gender equality and
decent work opportunities for everyone.

43.7.3 👷‍🍕🏍 NITI Report on Gig Workers

NITI Report- “India’s Booming Gig and Platform Economy”: following recommendations →

 Social security measures such as income support, paid sick leave, insurance, and pensions
 Women are more likely to take up platform jobs after education and marriage. So, Government
should give tax and subsidy benefit to companies if they're hiring more women / PH. (शादी के बाद
कई महिलाएँ पारंपरिक क़िस्म की ऑफ़िस की नौकरी नहीं कर सकती। वे भी गिग-वर्क र बनना चाहती है। इसलिए सरकार ने कं पनियों
को टैक्स और सब्सिडी में ऐसे प्रोत्साहन देने चाहिए ताकि वे ज़्यादा से ज़्यादा महिला और अपाहिजों को गिग-वर्क र की नौकरी दे।)
43.7.4 📕🍕 ES24: Gig economy DATA
India Numbers 2020–21 2029–30
Gig workers 77 lakh 2.35 crore
Gig workers as a % of Total Workforce 1.5% 4.1%
43.7.5 📕🍕 ES24: Gig workers: 1st world vs 3rd world
Region Type of Gig-work
3rd world / Developing Lower-income low-skill as deliveries, taxi, house cleaning, AC repair,
Countries beauty-parlour etc.

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 High-skill better income e.g. software/website dev, animation etc.
%-wise less number of total workers in gig-work because
1st world / Developed
(A) Social security/unemployment allowance given, so many people will
Economies
prefer to sit unemployed instead of taking low paying gig-jobs.
(B) Better availability of formal proper jobs in private sector.
43.7.6 📕🍕 ES24: Gig-Economy benefits of (फ़ायदे)
• increases job creation in tier-2 and tier-3 cities (छोटे शहरों में रोज़गार)
• improves job opportunity for PH/Women. (महिलाओं और विकलांगों के लिए रोज़गार सृजन)
• gives part-time work for college students to continue their education.
• gives buffer jobs to people in case of temporary unemployment. (अस्थायी रूप से बेरोज़गार हुए लोगों को
छोटा-मोटा काम मिल जाता है।)
• Workers can move to better-paying permanent jobs after gaining work-experience as gig-
worker. (नौजवान को अनुभव/तजुर्बा मिलता है।)
43.8 🗺️ L ABOUR MIGRATION TREND
(PYQ-2015) Discuss the changes in the trends of labour migration within and outside India in the
last four decades. (पिछले चार दशकों में भारत के भीतर और बाहर श्रमिकों के प्रवास की प्रवृत्ति में आए बदलावों पर चर्चा करें)

43.8.1 🗺️
Labour migration outside India
- 1980s-2000s: Gulf Migration and South East Asia.
- 2000s- Indians have increasingly migrated to countries in North America, Europe, Southeast
Asia, and Australia. Reasons: New jobs, globalization, search for more affordable higher
education, rising demand for skilled labor in various industries and easier visa policies.
- 2007–08 and 2020-onwards: some instances of reverse brain drain after economic crisis in
foreign nations viz a viz growth of the Indian economy, improved job prospects, and the appeal
of being closer to family and home culture. (विदेशों में आर्थिक मंदी के चलते घर वापसी।)

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43.8.2 🗺️ Labour migration within India (भारत के भीतर श्रमिकों आगम-निर्गम का रुख़/ट्रेंड)
- Before LPG: migration to big cities and mining/industrial towns. (खनन या औद्योगिक शहरों की तरफ़)
- Post LPG Reforms: Service sector boom migration towards IT cities - Bengaluru, Hyderabad,
Gurugram, Chennai.(LPG सुधार के बाद IT शेयरों की तरफ़।)
- Greater migration of Odisha workers towards the Surat diamond /textile industry. (हीरे/कपड़ा)
- MGNREGA Act 2005: slowed down the migration of the farm labourers from Bihar and Orissa
to Punjab/Haryana after availability of 100 days guaranteed work in their village.
- Post-Corona: reverse migration to villages during lock down. ES23 indicated that some of those
villagers are yet to return back to their city factories. (कोरोना के बाद लॉकडाउन के चलते वतन वापसी।)
43.8.3 🗺️Migration: Language no longer a barrier (भाषा कोई बाधा नही है,)
- ES17 conducted big data analytics of the railway ticket sales and found that yearly seven lakh
people from Gujarat migrate to Tamil Nadu (for jobs in IT, automobile, tech industry)
- increased migration of the Hindi belt workers towards non-Hindi areas such Goa, Maharashtra,
Gujarat, Tamil Nadu, Kerala and Karnataka. (Due to shortage of local workers)
- So, language is no longer a barrier. (प्रवासी मजदूर भाषा की बाधाओं से परे हो चुके हैं. हिंदी भाषियों का दक्षिण भारत की
तरफ जाना पहले से बढ़ चुका है)
43.8.4 🗺️ Challenges faced by migrant workers in India
- Some state govts trying to impose domicile based reservation qutas for the jobs even in private
sector e.g. Haryana, Karnataka. (स्थानीय लोगों को निजी कं पनियों के रोज़गार में भी आरक्षण कोटा देने की कु छ राज्य
सरकारों की पहल।)
- Challenges in portability of ration card, LPG cylinder, electricity connection, EPFO/ESIC
Although, Nowadays government has come up with initiatives to fix e.g. one nation one ration
card, online portal for EPFO etc.
- Lack of adequate social protection and maternity benefit for informal /casual / unorganised
sector workers. (मातृत्व लाभ और अन्य सामाजिक सुरक्षा की कमी।)
- Challenges in finding affordable rental accommodation, School admission for the child etc.
(किफ़ायती दाम पर किराये के मकान लेने में, बच्चों का विद्यालय में एडमिशन आदि में समस्या।)

43.8.5 🗺️✍️ Conclusion: migration inevitable, so, ensure worker well-being

“An ideal society should be mobile, should be full of channels for conveying a change from one part
to other parts.” - Dr. B.R. Ambedkar (एक आदर्श समाज गतिशील होना चाहिए, परिवर्तन को एक हिस्से से दूसरे हिस्से तक
पहुँचाने के लिए चैनलों से भरपूर होना चाहिए।)

TEMPLATE Keywords
X Thing IMP - International migration of Indian workers helps bringing inward
remittances. (विदेशों से भारत में पैसा आता है,)
- Domestic migration of Indian workers is also inevitable with the
decreasing total fertility rate and increasing age of the Southern states.
- So migration essential for economic growth. (आर्थिक वृद्धि के लिए।)
- Migrant diaspora also required for India’s global soft power e.g. in USA
Biz and politics. (कू ट-नीतिमें नरम शक्ति प्रसार के लिए,)
Y thing creating - Lack of affordable housing and social protection to the workers

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 problem - overcrowding in the cities. (किफ़ायती आवास और सामाजिक सुरक्षा का अभाव)
Z is need of the - economic and social well-being of the migrant workers- both local and
hour global. (स्थानीय व् राष्ट्रीय स्तर पर मज़दूरों की आर्थिक और सामाजिक ख़ुशहाली।)
- also create adequate infrastructure and economic opportunities in every
state to prevent excess outward migration.

44 📕🤖 ES24: W ILL AI DESTROY THE JOBS?

• Conventional economic wisdom would suggest that technological changes generate

productivity gains leading to higher wages and more economic opportunities in the long run.
(पारंपरिक आर्थिक ज्ञान ये कहता है कि प्रौद्योगिकी टेक्नोलॉजी आने से रोज़गार के अवसर बढ़ते हैं)
• But Each Industrial Revolutions caused a significant loss of livelihood for workers whose
tasks were most susceptible to automation and those who could not quickly adapt to new
tech. (किन्तु हर एक औद्योगिक क्रांति ने कई लोगों के रोज़गार छीने हैं जो लोग नई टेक्नोलॉजी को जल्द अपना नहीं पाए।)
44.1.1 📕🤖 ES24: Historical Examples of Technology vs Jobs

Spinning Jennies Power Loom

increased the productivity and Decreased the need of workers, decreased the wages of
demand of handloom weavers. workers.
1819-Ricardo: “machinery did not 1821-Ricardo: “If machinery could do all the work that
lessen the demand for labour” labour now does, there would be no demand for labour” (यदि
(मशीन/यं त्र आने से मज़दूरों की माँग कम नहीं हुई मशीन वो हर काम कर पाता है जो मज़दूर कर रहा है → तो फिर मज़दूरों की कोई
है) ज़रूरत ही नहीं रहेगी।)
• During Economist David Ricardo’s time (1772 – 1823) workers suffered harsh working
conditions & exploitation. Bcoz, their well-being was completely dependent on the

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 discretion of industrialist without any legal protection. (हालाँकि रिकार्डो के ज़माने में मज़दूरों के लिए कोई
क़ानून नहीं थे इसलिए उद्योगपति उनका मनमाने तौर पे शोषण करते थे।)
• International labour organisation (ILO) was yet to be formed (in 1919).
• Thus, political economy remains decisive in ensuring shared prosperity from technology e.g
whether labour laws / tax structure of Government supports the workers or the industrialists
(यानी कि ये राजनीतिक अर्थतंत्र या सरकारी नीतियों में तय करना होगा, कि नई टेक्नोलॉजी अपनाने से उद्योगपतियों का कल्याण
हो लेकिन मज़दूरों के हितों की रक्षा हो।)
44.1.2 📕🤖 ES24: Will AI take away the jobs?
AI will take away jobs ✋ counter arguments
adaptation of AI in India remains low
IMF ~ 40 per cent of global employment is exposed
compared to US, Europe, and the developed
to AI
Asian economies.
Manufacturing sector is still less exposed to
AI can do better job than humans e.g. In tomato
AI as industrial robots are neither as nimble
ketchup factory, AI can check tomato quality with
nor as cost-effective as human labour.
95% accuracy while humans can do at 70%
(IT/BPO sector more expose to job-losses by
accuracy.
AI)
IT/BPO sector, where GenAI can complete tasks
through chatbots → jobs at risk. - clerical tasks, e.g. In inventory and supply chain management,
proof-reading of novels in publisher office, replying AI applications could rather be
to customer care, processing loan application, etc complementary to labour.
can be done by AI.
Taxis took away the job of horse carriages computers did not take away the jobs of
emails reducing the jobs for postmen. typists, but only improve their capacity.
AI can help doctors to identify health risks
out of digitalised health data but AI itself
can’t do surgery.
AI can help teachers evaluate the answer
copies faster but it doesn’t decrease the
role/importance of human teacher in the life
of a student.
AI can help spell-check / proof-reading of a
novel/poem, but can’t write a masterpiece by
itself.
44.1.3 📕🤖 ES24: Future of Indian jobs (कृ त्रिम बुद्धिमत्ता से भारत को चुनौती)
• The world is in the midst of a fourth industrial revolution characterised by ‘cyber-physical
systems, Internet of Things (IoT), big data, nano-technology, machine learning, AI,
blockchains, genetic engineering, quantum computing, and advanced manufacturing
automation.

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 • Post-COVID19 ,the digitisation of economy has hastened further. (कोरोना के बाद अर्थतंत्र का
डिजिटलकरण तेज़ी से बढ़ रहा है)
• According to the World Economic Forum (WEF), the fastest-growing jobs in the next five
years will be those of AI and machine learning specialists, green finance specialists, business
intelligence analysts and cyber security specialists, educators/trainers, and digital commerce.
• India would not remain immune to this transformation. (- भारत भी इस परिवर्तन से अछू ता नहीं रहेगा।)
Country China USA India
AI Research Papers Published (2019) 102,161 74,386 23,398
• 😭 India producing less research papers than other nations. (दूसरे देश ज़्यादा रिसर्च सं शोधन प्रकाशित
कर रहे हैं।)
• Need for a legally empowered Authority for regulating AI at national and international level.
(क़ानूनी रूप से सक्षम की गई एक सं स्था की ज़रूरत होगी)
• AI will create more jobs in long term but may have a negative short-term impact on
IT/BPO/Outsourcing jobs in India. (लघु अवधि में भारत की IT BPO क्षेत्र में मैं नौकरियां कम हो सकती है)
• India needs to focus on capacity building, upskilling, training, to ensure that low-skilled
workers do not suffer from any AI-led job losses. (मज़दूरों की क्षमता निर्माण कौशल तालीम पर ज़ोर देना
होगा ताकि कृ त्रिम बुद्धिमत्ता आने से उनके रोज़गार सुरक्षित रहे।)
• Notable Indian-govt initiatives: ‘Future Skills Prime’, ‘YUVAi: Youth for Unnati and Vikas
with AI’, ‘Responsible AI for Youth 2022’

44.1.4 ✍️🤖 Conclusion: AI will takeaway jobs?

• AI will not destroy jobs, rather transform them. (कृ त्रिम बुद्धिमत्ता रोज़गार को ख़त्म नहीं करेगी बदली की उसमें
परिवर्तन लाएगी।)
• In the short-term, AI may reduce the jobs in IT/BPO sector, in the long-term, AI will create
more jobs. (लघु अवधि में IT क्षेत्र के रोज़गार को ख़तरा लेकिन दीर्घावधि में रोज़गार सृजन बढ़ेगा।)
• But need of the hour is for the political economy to create the right incentives to balance (a)
the needs of industrialist for profit maximisation and efficiency versus (b) workers’
protection and skill upgradation (समय की मांग है कि राजनीतिक अर्थव्यवस्था सही प्रोत्साहन पैदा करे ताकि (क)
उद्योगपतियों का मुनाफ़ा/ उत्पादकता भी बढ़े और साथ ही साथ(ख) श्रमिकों की सुरक्षा और कौशल-वर्धन भी हो)

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44.2 ⁉️✍🏻M OCK QUESTIONS FOR MAINS

44.2.1 ⁉️ ✍🏻 PYQ-Economics Optional & Indian Econ.Service

1. What schemes are launched by the Government to deal with the problem of unemployment
in India? Why the problem still persists ? (भारत में बेरोजगारी की समस्या के निराकरण हेतु सरकार ने किन
योजनाओं को शुरू किया है ? यह समस्या अभी भी क्यों बनी हुई है ?) (2024)
2. "India has a worse underemployment problem than unemployment." Discuss ("भारत में
बेरोजगारी से भी बदतर समस्या अल्परोजगार की है।") (2022)
3. "Why the Mahalanobis strategy of development was abandoned? What were its
inadequacies? (विकास की महालनोबिस रणनीति का क्यों परित्याग हुआ? इस रणनीति की क्या अपर्याप्तताएं थीं ?)
4. What were the economic and non-economic rationale for adopting mixed economy model
in India? भारत में मिश्रित अर्थव्यवस्था मॉडल को अपनाने के आर्थिक और गैर-आर्थिक तर्क क्या थे? (2016)
5. Mixed economy is an outcome of the compromise between laissez-faire capitalism and
socialist state control of resources. “Elaborate. Mention its salient features. (2013)
6. Why has the planning process failed in reducing regional disparities in India? (2001)
7. How the setting-up of NITI Aayog has changed the planning perspective in India? (2018)
8. Is Privatisation a boon or a bane in India? Discuss. (Hint) Recycle capitalism pro-anti
arguments with logic.
9. What were the major hurdles to development as experienced in India during first decade
after independence? Discuss them and what steps were taken to remove them? (2016)
10. Do you think Gandhian vision of development is still relevant in India? Explain (2014)
11. Elaborate upon Gandhian versus Nehruvian vision of India’s development. Which one is
better in the present scenario? Give reasons. भारत के विकास के गांधीवादी बनाम नेहरूवादी दृष्टिकोण विस्तृत
कीजिए। वर्तमान परिदृश्य में कौन सा बेहतर है? कारण दे (2011)
44.2.2 ⁉️✍🏻 PYQ-GSM
1) Q. What type of cooperation between the government, NGOs, and private sectors would be
most effective in tackling socio-economic issues of development? विकास के सामाजिक-आर्थिक मुद्दों से
निपटने में सरकार, गैर-सरकारी सं गठनों एवं निजी क्षेत्रों के बीच किस प्रकार का सहयोग सर्वाधिक उपयोगी होगा? (2024)
2) How are the principles followed by the NITI Aayog different from those followed by the
erstwhile Planning Commission in India? नीति आयोग द्वारा अपनाए गए सिद्धांत योजना आयोग से अलग कै से
(2018)
3) Capitalism has guided the world economy to unprecedented prosperity. However, it often
encourages shortsightedness and contributes to wide disparities between the rich and the
poor. In this light, would it be correct to believe and adopt capitalism driving inclusive
growth in India? Discuss. पूंजीवाद ने विश्व अर्थव्यवस्था को अभूतपूर्व समृद्धि के लिए निर्देशित किया है। हालांकि, यह
अक्सर अदूरदर्शिता को प्रोत्साहित करता है और अमीर और गरीब के बीच व्यापक असमानताओं में योगदान देता है। इस प्रकाश
में, क्या भारत में समावेशी विकास को कियान्वित करने के लिए, पूंजीवाद को अपनाना सही होगा? चर्चा करें?
4) ‘In the context of neo-liberal paradigm of development planning, multi-level planning is
expected to make operations cost effective and remove many implementation blockages.’-

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 Discuss. [विकास के लिए आयोजन के नव-उदारवादी प्रतिमान के सं दर्भ में, बहु-स्तरीय योजना द्वारा परिचालन लागत को
प्रभावी बनाने और कई रुकावटों को दूर करने की उम्मीद है। — चर्चा कीजिए ]
5) The nature of economic growth in India in described as jobless growth. Do you agree with
this view? Give arguments in favour of your answer. भारत की आर्थिक वृद्धि, "रोजगार-रहित/बेरोजगार
युक्त" आर्थिक वृद्धि है.क्या आप इससे सहमत हैं?
6) Do you agree with the view that increasing dependence on donor agencies for development
reduces the importance of community participation in the development process ? Justify
your answer.(क्या आप इस मत से सहमत हैं कि विकास हेतु दाता अभिकरणों पर बढ़ती निर्भरता विकास प्रक्रिया में
सामुदायिक भागीदारी के महत्व को घटाती है ? अपने उत्तर के औचित्य को सिद्ध कीजिए ।) (2022)
7) Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. भारत
में महिलाओं के सशक्तिकरण की प्रक्रिया में 'गिग इकोनॉमी' की भूमिका का परिक्षण कीजिए।
8) Most of the unemployment in India is structural in nature. Examine the methodology
adopted to compute unemployment in the country and suggest improvements. (भारत में सबसे
ज्यादा बेरोजगारी प्रकृ ति में सं रचनात्मक है। भारत में बेरोजगारी की गणना के लिए अपनाई गई पद्धति का परीक्षण कीजिए और
सुधार के सुझाव दीजिए) (2023)
9)
44.2.3 ⁉️✍🏻 Mock Question
1) Compare and Contrast the ideas of PM Nehru and PM Modi on the India’s economic self-
reliance. (भारत की आर्थिक निर्भरता के सं दर्भ में नेहरू और मोदी के विचारों मैं समानता और भेद पर चर्चा करें. )
2) “Reducing economic policy uncertainty is critical for both domestic investment and foreign
investment.” Suggest ways for accomplishing this. घरेलू एवं विदेशी निवेश को बढ़ावा देने के लिए आर्थिक
नीति में अनिश्चितता को कम करना जरूरी है
3) Discuss the potential impact of A.I. on job creation in India. What policy measures should
government adopt to address this. (भारत में रोजगार सृजन पर ए.आई. के सं भावित प्रभाव पर चर्चा करें। सरकार
को इसे सं बोधित करने के लिए क्या नीतिगत उपाय अपनाने चाहिए।)

📑Next: Pillar#4D- GDP and inflation

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 👳🏻🧔 PILLAR#4D: M ACROECONOMIC INDICATORS- GDP, INFLATION

Table of Contents

40 🌽⌚️🎧Pillar#4: Indicators → GDP.............................................................................................483

40.1.1 GDP projections: Economic Survey.......................................................................................................................484
40.1.2 GDP growth why not high.......................................................................................................................................484
40.2 2nd Gen Economic Reforms.......................................................................................................... 485
40.2.1 🌻 Reforms Roadblocks and delayed/lagged result - 📙ES23.............................................................................486
40.3 →ES24: GDP challenges → 'far right’ political ideology...........................................................487
40.3.1 📕ES24: Era of De-globalization ( - वि वैश्वीकरण का युग).............................................................................................487

40.3.2 📕ES24: Other External challenges ( बाह्य/विदेशी चुनौतियां)......................................................................................487

40.4 📕ES24: Chinese conundrum (चीनी पहेली/दुविधा कै से बुझाएं ?).........................................................488

📕
40.4.1 ES24: Chinese conundrum : questions faced by India?...................................................................................488
40.5 📕ES24: GDP challenges: 2024–25 target@ 6.5 to 7%................................................................489
40.6 📙📙ES22: supply-side reforms to ↑ GDP (आर्थि क वृद्धि के लिए आपूर्ति क्षेत्र के सुधार)........................490
✍🏻
40.6.1 Conclusion: 5 Trillion economy?......................................................................................................................490
40.7 📐📉 Global Risk Report 2023 (वैश्विक जोखिम रिपोर्ट)......................................................................491
40.7.1 📐📉 Global Risk Report 2022- January ( )...............................................................................491
वैश्विक जोखिम रिपोर्ट
48.1.1 📐📉 Declining Growth rate: future risks / challenges- 📙📙ES........................................................................491
40.7.2 💰Investment↑ more imp than Savings↑ - said Eco survey 2018......................................................................492
40.7.3 🌽⌚️🎧📈 GDP → $5 Trillion → How to Achieve?: NITI strategy..................................................................492
40.8 Wealth Creation with help of ancient and modern thinkers ( धन सृजन)......................................493
41 GDP → Atma-Nirbhar
.....................................................................................................495
Bharat
41.1 Atma-Nirbhar: Salient Features................................................................................................. 495
41.2 Atma-Nirbhar: Criticism.............................................................................................................497
41.2.1 Criticism: Statistical window-dressing...................................................................................................................497
41.2.2 Criticism: Failed to revive the demand..................................................................................................................498
41.2.3 Criticism: States not given enough help.................................................................................................................498
41.2.4 Criticism: Regional Imbalance (असंतुलित क्षेत्रीय विकास)..........................................................................................498
41.2.5 Criticism: Modi shd have given Unemployment Allowance like USA..............................................................499
41.3 👻✋🙋‍♀️Alternate Suggestions to revive Economy: अन्य सुझाव ....................................................499
🌻
48.1.2 📙
GDP Growth what more should be done? as per ES23..............................................................................500
41.4 🌽⌚️🎧📈 GDP → $5 Trillion → How to Achieve?: 📔📔ES strategy......................................501
41.5 📐India As A ‘Developed’ Country?............................................................................................501
41.5.1 Bangladesh exiting LDC: what can India learn from Bangladesh?.....................................................................502
42 inclusive Growth (समावेशी विकास)....................................................................................................502

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42.1 📐👿 GDP & Per Capita Income→ Criticism / Limitations......................................................502
42.1.1 GDP → Economic Growth vs Economic Development......................................................................................503
42.2 Inclusive growth : challenges.......................................................................................................503
42.3 Inclusive growth has to be sustainable........................................................................................503
42.3.1 How to make the growth sustainable?....................................................................................................................504
42.3.2 Conclusion- inclusive growth and sustainability..................................................................................................505
42.4 Regional Imbalance in Growth................................................................................................... 505
43 🍀📕ES24 on Green GDP & Green Finance..................................................................................506
43.1 🍀📕ES24: India’s Green Targets by 2030..................................................................................506
43.2 🍀📕ES24: Green Finance (हरित वित्त)..........................................................................................507
43.2.1 🍀📕 Green Finance challenges: CBAM ( ).......................................................................507
कार्बन सीमा समायोजन कर
43.2.2 🍀📕 Green Finance challenges: not enough money...........................................................................................507
43.2.3 🍀📕 Green Finance challenges: Greenium/green premium..............................................................................508
43.2.4 🍀📕 Green Finance challenges: Depth of Corporate bond market...................................................................508
44 🍅Inflation (महँ गाई या मुद्रास्फीति).......................................................................................................509
44.1 Inflation - Major reasons in India.............................................................................................. 509
44.2 PYQ → RBI & food inflation (10m, 2024)..................................................................................510
44.2.1 Reasons for high food inflation in India................................................................................................................510
44.2.2 RBI effectiveness against food inflation.................................................................................................................510
44.2.3 🍅📈 Inflation- politically unavoidable, socially harmful, economically useful? ..............................................511
44.3 Inflation: How to fight (मुद्रास्फीति से कै से लड़ा जाए?).......................................................................511
44.3.1 📕🧅ES24: inflation observations...........................................................................................................................512
44.4 Low inflation = Economy in good shape?....................................................................................512
44.5 📕 ES24: Suggestions to Improve the statistical database...........................................................514
44.6 ✍🏻Mock Questions related to GDP and inflation.......................................................................515
✍🏻
44.6.1 Handpicked from Economics Options..............................................................................................................515
44.6.2 Mock Questions and PYQ from GS........................................................................................................................516

40 🌽⌚️🎧P ILLAR#4: INDICATORS → GDP

 Gross Domestic Product= is the market value of all the goods and services produced within the
domestic territory of a country during a specified time period, usually one year. (किसी देश के घरेलू
क्षेत्र में उत्पादित सभी वस्तुओं और सेवाओं का बाजार मूल्य को सकल घरेलू उत्पाद कहा जाता है)
 Here, domestic territory = political frontiers of the country including its territorial waters, ships,
aircrafts, fishing vessels operated by the normal residents of the country; AND its embassies,
consulates located abroad. (as per NIOS textbook)
 GDP potential= is the Highest or maximum output that a country can produce using the
available labour and capital (at a constant inflation rate). सं भाव्य जीडीपी = आपके देश में उपलब्ध सभी मजदूर
और पूं जी से जो महत्तम उत्पादन हो सकता है.

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 GDP gap = difference between potential GDP and real GDP. जीडीपी अंतर / खाई = वास्तविक और सं भाव्य
जीडीपी के बीच का अंतर
40.1.1 GDP projections: Economic Survey

Note: NSO sometimes revises growth rates of past years later on. Above data is based on the press-
release dated 31st May 2024.

40.1.2 GDP growth why not high

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40.2 2ND GEN ECONOMIC REFORMS
(PYQ-Optional-Eco-2014) Second generation economic reforms are crucial for raising the growth
rate of the economy. Throw light on these dimensions. (अर्थव्यवस्था की विकास दर को बढ़ाने के लिए दूसरी पीढ़ी के
आर्थिक सुधार महत्वपूर्ण हैं। इन आयामों पर प्रकाश डालिए।)

 (intro: origin) Post BoP-crisis: 1991 LPG reforms. Write a few lines from Pillar4B and explain the
features of LPG.
 PM Modi- We should become developed nation by 2047. Economist Bibek Debroy, Chairman,
of Economic Advisory Council to the Prime Minister (EAC-PM) says for this purpose we need
to have economic growth of 7-8% with the help of following second generation reforms:
 focus on sunrise sectors artificial intelligence, 5g, drones, semiconductors, space technology,
genomics, pharmaceuticals and clean technologies- electric vehicles etc.
 AI-Blockchain technology, central bank digital currency adoption of digital economy less cash
economy etc. chikni-chupdi baatein likho.
 ONDC (Open Network for Digital Commerce) platform for empowering the small retailers to
compete in the e-commerce.
 Focus on knowledge-based industries- ICT, Pharma, Biotech, Space-Tech,
 Focus on environmentally sustainable economy - circular economy, resource- jute, bamboo, coir
 Faster resolution of NPA
 Removal of pain-points in Taxation: Direct tax code, GST, fiscal federalism

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 model acts for agriculture, contract farming, shop establishment, land leasing, etc.
 Infrastructure push through PM Gati Shakti, National monetisation pipeline, national
infrastructure pipeline.
Conclusion: Yes required to get 5 Trillion GDP and to become developed nation by 2047 and to reap
India’s demographic dividend.

40.2.1 🌻 Reforms Roadblocks and delayed/lagged result - 📙ES23

कु ल मिलाकर आर्थिक सर्वेक्षण का यह कहना है कि हालांकि सरकार ने काफी सारे आर्थिक सुधार तो किए थे लेकिन कु छ अप्रत्याशित
बाधाओं के चलते उन सुधारों का सकारात्मक असर देरी से दिखा.
Era 1998–2002
Reforms** Privatisation of Maruti etc, entry of private mobile telecoms companies, SARFAESI
Act 2002, Infrastructure (Golden quadrilateral Ref Pillar5), FRBM Act 2003
Roadblocks 1998: nuclear testing → Western powers imposed sanctions on India: trade and
investment declined temporarily, Twin Balance Sheet Syndrome/NPA,
El-Nino-Droughts (2000–02), 9/11 terror attack USA (2001)
Result Once shocks faded away → structural reforms showed result from 2003 to 2007–08

Era 2014–2022
Reforms** 1) UPI-BHIM, JAM-DBT, inflation-MPC target, IBC, MUDRA & other loan
schemes for MSME etc
2) GST, DDT abolished, New Income Tax Regime, Demonetisation to combat
black money, Atma-Nirbhar Bharat counter cyclic fiscal policy, privatisation of
Air India
3) GIFT-city IFSC, FDI relax in defense & insurance
4) e-NAM, Soil Health Cards, Fasal Bima & irrigation, Matsya Sampada, Agri infra
fund; PLI, Make in India 2.0, ease of doing business/ decriminalisation,
5) RERA, PM Gati Shakti, Smart Cities, Sagarmala, UDAN-Airtravel, 5G, telecom
spectrum reforms,
6) new education policy, Poshan Abhiyan & many schemes for HRD etc
Roadblocks Corona, ILFS Crisis, PNB Scam,
Russia-Ukraine, US Fed Tapering
Result Economic Survey expects similar here.

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**⛳️ FAQ: What exactly are above reforms? Ans. It is covered in respective pillars and/or mains
handout. If I narrate the entire Avenger movies timeline again → it will be 25,000 page ka handout.
40.3 📕ES24: GDP CHALLENGES → 'FAR RIGHT’ POLITICAL IDEOLOGY
Impact on Indian Economy
Far Right politics in USA/EU
(अमरीका/यूरोप में उग्र/चरम दक्षिणपंथी राजनीति की भारत पे असर)
Ultra-Nationalism (चरम USA/EU politicians give preference for protecting domestic
राष्ट्रवाद: भारतीय चीज़ों पे ज़्यादा टैक्स / industries and jobs from foreign competition. Heavy taxes on
बहिष्कार।) Indian and Chinese goods/services.
Anti-Immigration affect the livelihood of Indian diaspora → possible fall in
(आप्रवासी विरोधी नीतियां) remittances → consumption and investment in India affected.
Cultural homogeneity,
denigrating Indian food culture places in their tweets/reels/podcasts
Racial-elitism (सांस्कृ तिक
→ foreign tourist inflow to India affected.
एकरूपता, नस्लीय-अभिजात्यवाद)
Anti-UN, Anti-WTO Disregard for the WTO agreements. Opposing the appointment of
(अंतरराष्ट्रीय सं स्थानों का विरोध) judges. (Ref: Pillar#3 for more)
Developed nations are generous with pledges and parsimonious in
Denial of Climate Change delivering on them → Green transition & Net-zero emission targets
(जलवायु परिवर्तन का अस्वीकार) for Indian economy becomes difficult. (विकसित देश अनुदान के बड़े वायदे/
प्रतिज्ञा करते हैं लेकिन असल में पैसा भेजते वक्त कं जूसी करते हैं।)

40.3.1 📕
ES24: Era of De-globalization (वि-वैश्वीकरण का युग)
• Idea of economic globalisation has run its course. It may not be reversed fully, but it has
peaked. It will continue to face obstacles as economic policies worldwide (इस आर्थिक वैश्वीकरण
ग्राफ में अपने चरम तक पहुँच चुका है। अब ज़्यादा बढ़ोतरी असं भव। के वल बाधाएँ ही दिख रही है।)
• global trust deficit is driving countries to pursue to become self-reliant and protect them
from external shocks (राष्ट्रों के बीच विश्वास की कमी के चलते आत्मनिर्भरता का रुख़ बढ़ रहा है ।)
• India has to generate domestic resources mostly for its own investment and development
priorities. (भारत में भी स्थानीय सं स्था दोनों की मदद से अपना विकास करना होगा)
• Geoeconomic fragmentation, resource nationalism: - security of supply chain becoming
critical. (भू-आर्थिक विखं डन, सं साधन राष्ट्रवाद: के चलते आपूर्ति श्रृंखला की सुरक्षा महत्वपूर्ण है।)
• In the supply chain management- ‘Just in case’ has replaced ‘Just in time’= countries
building unreasonably high buffers of oil, lithium, fertilizer etc. (अनावश्यक रूप से बोहोत ज़्यादा मात्रा
में तेल, खनिज और उर्वरक का भं डारण किया जा रहा है।)
40.3.2 📕
ES24: Other External challenges (बाह्य/विदेशी चुनौतियां)
• Russia-Ukraine conflict → Europe growth down → Indian exports affected. (And upar se
EU imposing CBAM Carbon Tax on it.)

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 • USA high inflation → their central bank increased with the rate → demand for Indian
goods/export affected.
• 2023: Israel Palestine: Red Sea crisis - supply chain disrupted.
• Due to above problems FDI inflows also declined in India.
40.4 📕ES24: C HINESE CONUNDRUM (चीनी पहेली/दुविधा कै से बुझाएं ?)

• Manufacturing Trade Surplus (2019 Onwards): Since 2019, China’s manufacturing trade
surplus has increased due to weak domestic demand and expanding industrial capacity →
cheaper product exports → protectionist measures by the USA/EU, prompting factories to
relocate to countries like India. ((चीन के स्थानीय बाज़ार में माँग की कमी के चलते उनकी कम्पनियां विदेशों में अपना
माल बेचने में व्याकु ल हुई. सस्ते चीनी माल के ख़िलाफ़ अमेरिका और यूरोप में सं रक्षणवादी नीति अपनायी है।)
• Real Estate Market Collapse (2021 Onwards): The collapse of China’s real estate market and
a slowdown in construction reduced demand for steel and cement, causing China to dump
cheap steel globally. This has led to losses for steel producers in India, Vietnam, and Brazil.
(चीन में मकानों की बिक्री कम हुई है इसलिए स्टील सीमेंट की माँग कम हुई है और अब चीनी स्टील उत्पादक सस्ते में अपना
स्टील दूसरे देशों में बेच रहे जिससे भारत के स्टील व्यापारियों का नुक़सान हो रहा है।)
• Monopolistic Practices: China’s dominance in rare earth and critical minerals has led to
monopolistic practices, negatively impacting global green transition efforts. This is further
enraging USA/EU to increase protectionism.(अति महत्वपूर्ण खनिजों पर चीन का एकाधिकार।)
• In such situation, the MNC is based in China, are considering
Term Meaning
Re-shoring (फै क्ट्रियों
companies moving back to home country from overseas.
की वतन वापसी)
acquiring the components/relocating factories to countries that are politically
Friend shoring (मित्र
or economically aligned with the company’s home country. (e.g. Apple
राष्ट्रों में विस्थापन)
shifting factories from China to India.)

40.4.1 📕
ES24: Chinese conundrum : questions faced by India?
• (a) Is it possible to plug India into the global supply chain without plugging itself into the
China supply chain? e.g. Chinese lithium battery → assemble iPhone in India? ( क्या बिना चीन की
आपूर्ति श्रृंखला का हिस्सा बने भारत वैश्विक आपूर्ति श्रृंखला का हिस्सा बन सकता है)
• (b) what is the right balance between importing goods and importing capital (FDI) from
China? (चीन से माल आयात करने और पूं जी आयात (एफडीआई) के बीच सही सं तुलन)

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 • (c) balancing the economic interdependence with strategic/security concerns. (सामरिक/सुरक्षा
चिंताओं के साथ आर्थिक अंतरनिर्भरता को सं तुलित करना।)

40.5 📕ES24: GDP CHALLENGES: 2024–25 TARGET@ 6.5 TO 7%

• As such India is a high-growth and low-inflation economy.
• GDP Growth rate: 8.2% (2023–24) & estimate 6.5 to 7% for 2024–25.
• Due to global troubles, supply chain disruptions, vagaries of monsoons - Eco Survey projects
GDP growth rate at 6.5–7% for 2024–25.
GDP component 📕ES24 comment
➢ persistent inflation in major countries, central banks have kept the policy
C = Consumption rates high. This is affecting consumption. (Except China- they’ve lowered
(उपभोग) the interest rates)
if monsoon is not good, rural consumption will be affected.
➢ investors are still cautious. Household savings are going more towards
physical assets (houses) rather than financial assets [which basically hints
I = Investment
that people are not happy with the low-interest offered by bankers.
(निवेश)
➢ Excessive investment in the real estate, not good for economy. It drives
up the black money and inflation.]
➢ Since Corona, government has increased the capital expenditure to
G = Government improve the infrastructure.
spending (सरकारी ➢ However, it is incumbent upon the private sector to take forward the
ख़र्च) momentum in capital formation on its own (in other words, economic
service criticising the private sector for not doing enough investment.).
➢ Competition of cheaper exports from China. China has has excess
manufacturing capacity compared to domestic demand.
X = Exports (निर्यात)
➢ So now they are dumping the products to foreign countries in greater
frequency and volume.
➢ India’s external sector is navigating through uncertainties.
➢ The ₹ was one of the most stable currencies in 2023.
M = Imports (आयात)
➢ Enough Forex reserves sufficient to cover around 11 months of imports.
CAD has stabilised improved from 2.0% (2022–23) to 0.7% (2023–24)

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40.6 📙📙ES22: SUPPLY-SIDE REFORMS TO ↑ GDP (आर्थिक वृद्धि के लिए आपूर्ति क्षेत्र के सुधार)
🎓✋Note: To understand the relevance of the following bullet points, you must have completed
the entire prelims course- all pillars:

 deregulation of numerous sectors and simplification of processes e.g. (नियंत्रण को कम करना, प्रक्रियाओं
का सरलीकरण)
o 🔪 Voluntary liquidation and cross-border insolvency (REF: Pillar#1B2)
o 🔪 TREDS / Factoring reforms for easier/faster loans to MSME. Changed definition of
MSME. (REF: Pillar#1C, 4B)
o 🌾 Using MSP for ↑ crop diversification
o 🛒 GeM portal for online procurement (REF: Pillar#4B)
o ✈️ Drone flying permission. (REF: Pillar#5)
o ☎️ Telecom Sector: Adjusted Gross Revenue (AGR) / FDI reforms. (REF: Pillar#5)
o 🍋☎️Removal of legacy issues like ‘retrospective tax’ (Vodafone) (REF: Pillar#2B)
o 💸 FDI relaxed in Defense, petroleum and insurance sector in recent years. (REF:
Pillar#3A)
o📲 production-linked incentives to ↑ supply of India-made goods. (REF: Pillar#4B)
o 👷 Four labour codes’ implementation (श्रम सं हिता क़ानून REF: Pillar#4B)
 Reducing the role of government in a sector/ in an activity. E.g.
o 🤵Privatisation (Strategic disinvestment) of Govt companies in Non-strategic sector. (ग़ैर
रणनीतिक क्षेत्रों में सरकारी कं पनियों का निजीकरण REF: Pillar#2D)
o ✈️ Aviation: Govt to no longer owns Air India (नागरिक उड्डयन REF: Pillar#2D)
o 🚝 Railways: Govt to allow private sector train operators. (REF: Pillar#5)
o 🛰 Space-tech/ISRO: ↑ the participation/involvement of the private sector companies.
(अवकाश क्षेत्र में निजी क्षेत्र की कं पनियों की हिस्सेदारी को बढ़ाना REF: Pillar#5)
 ⚓️Creating physical infrastructure via PM-Gati Shakati. (भौतिक बुनियादी अवसं रचना REF: Pillar#5)
 🏥 Creating Social infrastructure - schools, toilets, hospitals, houses for poor etc. via various
schemes. (सामाजिक बुनियादी अवसं रचना REF: Pillar#5)

🚩👶🏻FAQ: but some of above reforms are not supply-side reforms, but they demand side
reforms!!!??? Ans. UPSC is unlikely to ask you critically examine in Mains-Exam ke “do u agree that
Economic Survey 2022’s supply side reforms are NOT supply side reforms but actually demand side
reforms?!”. Ans. UPSC unlikely to engage in that pedantry! तो फिर क्यों बाल की खाल निकालनी है भाई?

40.6.1 ✍ 🏻 Conclusion: 5 Trillion economy?

 Higher economic growth can help increasing employment avenues for citizens & tax revenues
for the Govts. उच्च आर्थिक वृद्धि दर से रोजगार सृजन और राजस्व आमदनी में बढ़ोतरी होगी

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 Collectively, this results in improved living standards through higher expenditure on health &
education by both the citizens and the State. शिक्षा और स्वास्थ्य पर ज्यादा खर्च से जीवन स्तर भी बेहतर होगा
 Therefore, we must leave no stone unturned to accomplish above targets / address above
challenges on priority basis. (अत: अग्रता क्रम से उक्त चुनौतियों से लड़ना जरूरी)

40.7 📐📉 G LOBAL RISK REPORT 2023 (वैश्विक जोखिम रिपोर्ट)

Published by the world economic forum, 2023’s report identified following risk for India:

- Digital inequality (डिजिटल असमानता)

- Geopolitical contestation of resources (सं साधनों की भू -राजनीतिक प्रतियोगिता)
- Cost-of-living crisis (बढ़ती महंगाई से जीवन-यापन में समस्याएँ)
- Debt crises (ऋण सं कट)
- Natural disasters and extreme weather events (प्राकृ तिक आपदाएं और चरम मौसम की घटनाएं )
40.7.1 📐📉 Global Risk Report 2022- January (वैश्विक जोखिम रिपोर्ट)
@global level following risks identified: (वैश्विक स्तर पे निम्न जोखिम पाए गए)

2022’s report identified following risk for India:

 Fracture of interstate relations: e.g. (राज्यों के बीच बढ़ रहे तनाव)

o Dam & river water sharing e.g. Kerala vs TN over Mulla-Periyar dam (जल-विवाद)
o Border disputes e.g. 1) Assam-Mizoram border clash-policemen killed. 2) Dispute
between Andhra and Odisha over Kotia region (राज्यों के बीच सीमा विवाद)
o Trade of agri-commodities e.g. Telangana govt banning sale of UP-Potatoes to protect
local farmers. (कृ षि उत्पादों के व्यापार में बढ़ रहे तनाव)
 Debt crises in Advanced Economies → repeat of 2007-08’s American subprime crisis → Indian
exports will suffer. Ref Pillar3A (उन्नत अर्थतंत्र वाले देशो में कर्ज़ की समस्या से भारतीय निर्यातो पर जोखिम)
 Widespread youth disillusionment → unemployment/reservation related protests & social
unrest (नौजवानों में विश्वासपतन: जिससे बेरोज़गारी / आरक्षण के आंदोलनो में बढ़ोतरी हो सकती है)
 Failure of technology Governance → Data privacy violation, cyber crimes (प्रौद्योगिकी में विफलता के
चलते नागरिकों का निजी-डेटा लीक हो जाए, साइबर अपराध में बढ़ोतरी हो)
 Digital inequality among rich vs poor, urban vs rural → in e-learning, jobs, etc. (डिजिटल असमानता
के चलते अमीर-ग़रीब, ग्रामीण बनाम शहर-निवासीऑ के बीच की शिक्षा-रोज़गार के अवसरों में बढ़ती खाई)
48.1.1 📐📉 Declining Growth rate: future risks / challenges- 📙📙ES
ES22 had identified following challanges

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- 😷1) IF there will be no more lockdowns / new deadly corona Varients (अगर फिर से तालाबं दी ना हो)
- ☔️2) IF monsoon will be normal (अगर बारिश सामान्य रहे)
- ⛽️3) IF oil prices will be in the range of US$70-$75/barrel (कच्चे तेल की क़ीमतें सामान्य रहे)
- 🐯4) IF US Fed Tapering completed in an orderly fashion without new surprises or random
changes. (बिना कोइ नये अप्रत्याशित बदलाव किए, व्यवस्थित/ अनुमानित तरीक़े से फ़े ड-टेपरिंग ख़त्म हो)
- ⚔️🚛5) IF global supply chain disruptions (caused by Ukraine war & other geopolitical crisis)
will get solved. (भू-राजनीतिक आपदाओं के चलते हो रही वैश्विक आपूर्ति शृं खला की समस्याएं सुलझ जाएं . यदि ये सब चीज़ें
क़ाबू में रही → तो अपना आर्थिक वृद्धि दर 8.0-8.5% हो सकता है)

40.7.2 💰Investment↑ more imp than Savings↑ - said Eco survey 2018
- Pre-Subprime crisis, above indicators were >30% of GDP. But then ↓ , then struggling to
recover.
- Pre-subprime crisis our growth rate was in peak 9%, presently struggling in ~7% range (before
Corona). Some countries take as much as 17 years to come out of such crisis.
If we want to quickly recover, & bring our growth to 9% then we must ↑ investment → GFCF will
↑ → then growth rate will automatically ↑ → savings will automatically ↑ Therefore,

✅Increasing Investment / GFCF: should be ✋Increasing / mobilizing savings is important

our urgent priority but should not be our urgent priority
Resolve TBS, encourage Make in India & PMJDY, Pension-Insurance schemes, Sovereign
Startup India, Reforms in Tax Laws, Labour Gold Bonds, Unearthing black money,
Laws, Environment Clearance, FDI approval Demonetization etc. They’re important but not
etc. निवेश को बढ़ाना हमारी प्राथमिकता होनी चाहिए “URGENT” बचत को बढ़ाना प्राथमिकता नहीं होनी चाहिए
Similar theme is also reiterated by ES19 that private investment is necessary for boosting growth.

40.7.3 🌽⌚️🎧📈 GDP → $5 Trillion → How to Achieve?: NITI strategy

2018: NITI’s Strategy for New India @ 75 has given following strategy for $5 Trillion
Target Challenges?
↑ the Gross Fixed To increase Public Sector / Government led-investment:
Capital Formation - Must ↑ Tax:GDP by combating tax evasion and tax avoidance.

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 Target Challenges?
(GFCF) (करचोरी और कर परिहार को रोकना)
- Must ↓ Revenue deficit by combating Subsidy leakage through
सकल स्थिर पूंजी निर्माण JAM-trinity. (सब्सिडी का रिसाव बं द हो)
- Govt has to exit from loss making public sector enterprises. (घाटे में
चलने वाले सरकारी निगमों से सरकार हट जाए)
- PPP for Infrastructure. (सार्वजनिक निजी क्षेत्र की भागीदारी से)
To mobilize private households’ investment
- Greater coverage in Sovereign Gold Bond, Jan Dhan Account,
Pension-Insurance schemes etc. ;
- Preventing Ponzy & Chit Fund scams...
To mobilize domestic & foreign companies’ investment
- Addressing the NPA crisis, reforms in the FDI policy, Ease of Doing
Biz etc. (अनर्जक परिसं पत्ति, प्रत्यक्ष विदेशी निवेश में सुधार, व्यापार में सुगमता)
↑ India’s growth rate For this we must ↑ our ‘Exports’ so,
to 9-10%. - Address various bottlenecks in our agri and manufacturing sector.
Increase size of - Ease the complex labour and land laws. (श्रम और जमीन कानून में सुधार)
Indian economy - Industrial Revolution 4.0, artificial intelligence, IoT etc.
(=GDP) - Skilling Youth, ↑ female participation in labour force. (कौशल विकास
to $5 trillion USD. महिलाओं की श्रमबल में भागीदारी)
- Renewable energy to ↓ crude oil import bill. (नवीनीकरण ऊर्जा)
- Trade agreements with like-minded countries (समान विचारधारा वाले मित्र
देशों के साथ मुक्त व्यापार समझौते) (More in 📑Pillar#3B)
40.8 WEALTH CREATION WITH HELP OF ANCIENT AND MODERN THINKERS (धन सृजन)

 Until the entry of Europeans, India has been the dominant global economic power.

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 Then our GDP growth started to ↓ during British Raj and Nehruvian Socialism.
 But since 1991’s LPG reforms, again we are back on track.
📔📔ES20 identified following benefits of wealth creation by private entrepreneurs:
Employees, suppliers, retailers → ↑ income, jobs (रोजगार सृजन)
Government → ↑ tax collection (राजस्व / कर आमदनी में बढ़ोतरी)
Common citizen → ↑ quality of roads, schools, hospitals created through the
आम नागरिकों के लिए tax revenue (कराधान से सड़क, शिक्षा, स्वास्थ्य बेहतर की जाए)
Then, ES talked about “wealth creation” in context of GDP. He uses ancient and modern
thinkers/economists to suggest how to ↑ our wealth
Thinker How Economic Survey links their ideas with wealth creation
Kautilya  Kautilya’s Arthshastra book is centred around Varta (economic policy),
Dandaneeti (law and enforcement), Anvikshiki (philosophical and ethical
framework) and Trayi (cultural context)
 Kautilya asked the King to remove all obstructions to economic activity and
provide economic freedom to the citizens. (आर्थिक गतिविधि में सभी रुकावटें हटाकर
आर्थिक स्वतंत्रता प्रदान करना)
 So, Modi should also focus on Ease of Doing Biz (व्यापार में सुगमता)
Thiruvalluvar  Thiruvalluvar’s Thirukural book advocates wealth creation through ethical
Tamil poet and means. (धन सृजन करना चाहिए, किं तु नैतिक तरीके से)
philosopher.  Govt should provide equal opportunity for new entrepreneurs, Modi should
avoid Pro-Crony policies of ManMohan. (Recall Pillar4B: mfg → EoD,
पक्षपाती पूंजीवाद से बचो)
 There should be no shame in privatization (Strategic disinvestment) of the
govt companies, Because after privatization their profitability has ↑ .
📑
(Recall Pillar#2:Disinvestment)
Adam Smith Adam Smith's book ‘An Inquiry into the Nature and Causes of Wealth of
Father of Nations’ described “Invisible hand of the free market is instrumental in
Economics economic growth” (मुक्त बाजार का अदृश्य हाथ ही आर्थिक वृध्धी दिलाता है).
 But Govt intervention in free market often harms more than it helps. ( 📑
Recall Pillar4A: FCI procurement, Essential Commodities Act. (मुक्त बाजार में
सरकारी दखल से लाभ कम नुकसान ज्यादा)
David Hume, “We should assume every man is a knave (=dishonest person), his actions are
Scottish always driven by private interest. So, effective supervision required”. (सब लोग
Philosopher बेईमान और स्वार्थी ही होते ऐसा सोचकर सरकार ने सख्त निगरानी रखना जरूरी.)
 So, we’ve to regulate the Shadow banking sector (प्रतिछाया बैंक) more
📑
vigorously. ( Ref#1B)
 We must deal with the wilful defaulters responsible for the high level of
NPA. → use Artificial intelligence, Machine Learning etc., create PSBN

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 Thinker How Economic Survey links their ideas with wealth creation
📑
network. ( Ref#1B)
 American Sharemarket regulators has 15x times employees than SEBI. So,
we also need to increase manpower in regulatory bodies. ( Ref#1C) 📑
Motivation  Abraham Maslow’s Motivational Pyramid: “Individuals are not driven just
प्रेरणा by physical / material needs, but also have needs of self-esteem & self-
actualization” (व्यक्ति की प्रेरणा का स्त्रोत सिर्फ भौतिक सुख नहीं, बल्कि आत्म-सम्मान और आत्म-
प्राप्ति भी होते हैं)
 Confucius: “if Govt guides the people with penalties → they’ll shamelessly
evade the law. But if the Government guides them with virtue → people will
become upright.” (सरकार सद्गुण के साथ मार्गदर्शन करती है → लोग ईमानदार हो जाएं गे।)
 Therefore we should use the ideas of behavioral economics to increase their
morale to (व्यवहार अर्थशास्त्र, नैतिक स्तर बढ़ाएं )
📑
 1) Give up subsidies and 2) honestly pay taxes ( Ref: Pillar#2)
Trust Adam Smith’s book ‘The Theory of Moral Sentiments’ described, “while people
विश्वास are sometimes selfish, they also derive pleasure from seeing the happiness of
others. (हालांकि लोग कभी-कभी स्वार्थी होते हैं लेकिन उन्हें अन्य की खुशी देखकर भी खुशी मिलती है)
 Absence of such mutual sympathy / trust (परस्पर सहानुभूति / विश्वास) can result in
financial disasters, as seen in Subprime Crisis, Global Financial Crisis,
India’s NPA & Wilful defaulters.
 So, trust is a ‘public good (सार्वजनिक वस्तु)’ similar to ‘streetlight’- everyone
benefits from it. Govt & entrepreneurs should try to build trust with citizens
Further, “Assemble in India”, “Agri Exports” → ↑ Export → ↑ GDP etc= Ref: ( 📑Pillar#4A&B).
41 👻🌽⌚️🎧📈 GDP → A TMA-NIRBHAR BHARAT

 (Origin) 2020-March: Government of India initiated nationwide lockdown to prevent the spread
of Corona/COVID-19 pandemic. (कोरोना महामारी के चलते देशव्यापी तालाबं दी)
 This lockdown affected the income and livelihood of everyone from corporate companies to
common citizens of India. (सबकी आजीविका को हानी हुई)
 Therefore, to revive economy, PM launched Atma Nirbhar Bharat stimulus package in 2020-May
to revive the Indian economy. (अर्थव्यवस्था को पुनजीवन / प्रोस्ताहन का आर्थिक पेके ज)
 It’s centred on five pillars of – Economy, Infrastructure, System, Demand and Vibrant
Demography (स्फू र्तिली जनसांख्यिकी).
41.1 ATMA-NIRBHAR: SALIENT FEATURES
Mrunal's Pillars Atma-Nirbhar Salient Features (List not exhaustive)
1A, B,C:  RBI's easy monetary policy, loan moratorium, Additional loan towards

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Mrunal's Pillars Atma-Nirbhar Salient Features (List not exhaustive)
States (WMA, CSF), NBFCs & Mutual Funds, Postponed Basel norms
 Government schemes for loans towards NBFCs, MSME
Money Banking
 IBC code suspended
Finance
 Allowed Indian companies to directly list their shares in foreign exchange
 Relaxed penalties in the Companies Act
 ₹50 lakh insurance if Corona health worker died
 Expanded the coverage of workers in ESIC
 Atmanirbhar Bharat Rozgar Yojana / EPFO contribution
1D: insurance  Promised social security, health check up etc for unorganized sector
& Fin Inclusion workers (असं गठित क्षेत्र के मजदूरों के लिए सामाजिक सुरक्षा)
 Direct money transfer of 500-1000 rupees in PM-JDY women accounts,
Senior citizen accounts, PH etc. (प्रत्यक्ष लाभ अंतरण)
 Loans for SHG, MSME, Street Vendors (SVANIDHI)
 Extended the deadline for filing taxes, Reduced TDS rates
 Changed the policy of disinvestment
2: Public Finance  Promise to help the states finances
taxation  PM CARES fund for accepting donation
 Festival advance via SBI Utsav Cards for Govt employees, LTC benefits
 States given interest free loans for Capital Expenditure
 RBI's VRR and FAR windows for attracting $$
 Borrowed billions of $$ from BRICS-NDB, AIIB, ADB, World bank etc To
3: International revive Indian economy (बहुपक्षीय विकास बैंकों से कर्जा)
trade  Banned the import of 101 defense items. FDI in defense ↑
 Global companies can’t apply for Indian Government tenders below “X”
amount. (to reduce import bill & help local biz)
 Paid the PM-KISAN installments ahead of its due date (Frontloading)
 3 Ordinance to Reform the agriculture and food processing sector
(APMC, Contract Farming, Essential commodities)
4A: Agriculture,  ↑ MSP, Operation Green expanded to all fruits and veggies
 funding / loans for Food processing industry in Dairy cooperatives
 Agriculture Infrastructure Fund, Animal Husbandry Infrastructure Fund,
Pradhan Mantri Kisan Sampada Yojana
 Change the definition of MSME, MSME Loan schemes, equity infusion
 Interest subvention in Mudra loans (ब्याज में सब्सिडी)
4B: mfg, Ease of
 Portals: (MSME) CHAMPIONS portal, YUKTI 2.0 (Corona innovation),
Doing Biz
 Global companies can’t apply for Indian Government tenders below “X”
amount. (to reduce import bill & help local biz)
5: Infrastructure  Reforms to encourage more commercial Mining
 Funding for DISCOMs to increase electricity production
 PM-Awas yojana sub-components deadline extended

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 Mrunal's Pillars Atma-Nirbhar Salient Features (List not exhaustive)
 Rental housing will be promoted (किराए के मकानों के निर्माण को प्रोत्साहन)
 PPP for airports, atomic energy, space tech
 Transport → Vande Bharat mission and Shramik special trains to help the
migrants reach their home
 Force Majeure in RERA act, No penalty on road contractors If projects
not finished in time
 New portals & TV channels for online education
 One Nation one ration card, free grains, pulses, LPG cylinders for poor
6: Poverty,
hunger,  MGNREGA wages and funding ↑
 DBT of money in PM-JDY women, poor senior citizens, poor PH
education
 SHG: loans, procure masks and sanitizers produced by them
 Street vendors ko ₹10k loans (SVANiDHI scheme)
41.2 ATMA-NIRBHAR: CRITICISM

41.2.1 Criticism: Statistical window-dressing.

 The schemes that were announced in 2019- before Corona (e.g. PM Matysa Sampada)= their
numbers are also shown here. (अंको की फर्जी दिखावट)
 Fiscal policy component (Tax cuts, subsidies, interest subvention, MSP hike, EPFO social
security contribution, disinvestment, capital Expenditure for agri infrastructure etc.) = very
small in size. राजकोषीय हिस्सा बहुत कम है
 Most of the amount is by (+)(+) summing up bank loans to NBFC, MSME, farmers, builders,
Public Private Partnership etc. So, funding generated from….
o From RBI monetary policy decisions (↓ CRR, Repo, Refinance etc)
o From depositors’ deposits → bank → loans to borrowers
o PPP’s private sector share is generated through shares/bonds issued in market.
 So, amount is not entirely borne by the government from its own pocket.
Counter argument: Fiscal deficit will become unsustainable, govt floods money from the treasury
just to pacify the critics. Besides excess level of fiscal stimulus can result into overheating of the
economy- as evident in USA.

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41.2.2 Criticism: Failed to revive the demand
 Even after DBT/Subsidy/MGNREGA wages- the beneficiaries are not spending money, they’re
only saving money, fearing a longer recession so, shopping/demand↓ . (लाभार्थियों को पैसा मिला है
बेशक किं तु वे लंबी मंदी के डर में उसे खर्च नहीं कर रहे पैसे की बचत कर रहे हैं)
 RBI also noticed that stimulus package has failed to revive the animal spirit in the economy.
Only during the festival seasons, we see increased collection of GST- mainly on account of ‘pent
up demand’.
What is the meaning of the underlined words in the previous sections?? Ans. Bhai Prelim course
complete krke aao.
41.2.3 Criticism: States not given enough help

- Critics argue that states are not enough help in terms of GST compensation after Corona.
- Telangana CM even urged the Union to ↑ FRBM limit and explore issuing ‘Helicopter money’
- Delhi Govt unable to pay salaries to its employees. Wants ₹5000 cr from union.
- Bihar govt unable to pay its share for centrally sponsored schemes (CSS: कें द्र सरकार द्वारा प्रायोजित
योजनाएं ) such as MGNREGA, Pradhan Mantri Awas Yojna, PM Jan Arogya Yojana (PM-JAY: 5
lakh ka health insurance), mid-day meal etc. → So, Bihar wants the Union to pay the entire cost
of CSS, else threatens to stop the implementation altogether.
41.2.4 Criticism: Regional Imbalance (असं तुलित क्षेत्रीय विकास)
 ATMANI focuses on loans to MSME/industries. (लघु उद्योगों की मदद)

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 But, this will benefit more to southern and western Indian States, since they’ve more number of
registered firms / organized sector. किं तु ज्यादातर लघु उद्योग- पश्चिम और दक्षिण भारत में ही है
 But low levels of entrepreneurship / prevalence of unorganized sector in eastern India and Hindi
belt States = they’ll will not benefit much. पूर्वी भारत के लोग सिर्फ नरेगा के गड्ढे खोद कर दो पैसे कमाएं गे उतना ही.
 The Govt reformed the mining sector → ↑ mining activities in the Chhattisgarh, Jharkhand,
Odisha etc ASPIRATIONAL (=backward) states. But its benefits may be confined to the
industrialist, and not percolate down to the mine-workers, until the minimum wages are
increased and enforced. (न्यूनतम वेतन को लागू नहीं किया तब तक खनन क्षेत्र के मजदूरों को कोई लाभ नहीं)

41.2.5 Criticism: Modi shd have given Unemployment Allowance like USA
 Argument: Some critiques demand that Modi should give unemployment Allowance like USA,
 Counter-argument: In USA, 42% small companies had job vacancies but could not fill in March
2021 while 80 lakh Americans are receiving Unemployment Allowance cheques from
Government. Reason for this contrast: Many jobless/lazy/fearful people are preferring to stay at
home & collect Unemployment allowance cheque, instead of going out for work in the times of
Corona. Lesson: Countercyclical fiscal policy ke naam pe Giving unemployment allowance may
result in such a negative outcome. So Government money should be given conditionally for
doing some work, and not for sitting at home. अमरीकी सरकार बेरोजगारी-भत्ता दे रही है तो बहुत सारे
कामचोर/आलसी/डरपोक लोग नौकरी पर जा ही नहीं रहे हैं, जबकि अमरीका के छोटे उद्योगपति लोगों को नौकरी देने के लिए तैयार है.
अंत: मोदी सरकार ने बेरोजगारी भत्ता देना चाहिए ये मांग वाजिब नहीं है।

41.3 👻✋🙋‍♀️A LTERNATE SUGGESTIONS TO REVIVE ECONOMY: अन्य सुझाव

👻
Q. Suggest reforms in addition to ATMANI for revival of Indian Economy. (आत्म निर्भर भारत के
अलावा और क्या-क्या सुधार करने चाहिए अर्थव्यवस्था को पुनर्जीवित करने के लिए?)
 Mobilize funds through Consol Bonds. ( 📑Ref1C-Prelims)
 💸 🤲Bottom 80% of the households should be given Universal Basic Income of ₹15,000 → ↑
demand of goods/services → economic revival. (सार्वजनिक बुनियादी आय)(More in 📑Pillar#6)
 🌽🍽 Public distribution system needs to be universalized. Free/subsidized cereals, pulses and
cooking oil should be provided to all people irrespective of whether their name is in BPL list/
ration card or not. (सार्वजनिक वितरण प्रणाली)
 👨🏻‍🏭MGNREGA scheme needs to be expanded to urban areas as well. MGNREGA’s guaranteed
number employment days need to be increased to 200 days from present 100 days. (मनरेगा योजना को
शहरों में भी लागू करे, रोजगार दिनो की सं ख्या बढ़ाए) (More in 📑Pillar#6)
 💳📡 PM Garib Kalyan component of ATMANI gave ₹500 DBT in Jan Dhan Bank account of
women. But, many villagers don’t have a bank in 5 km radius. And due to lockdown, staff
shortage in banks. So we have to increase the digital payment ecosystem in rural areas. (डिजिटल
भुगतान को प्रोत्साहन देना) (More in 📑Pillar#1A1)

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 👷🏻We need to raise Minimum support prices for farmers and Minimum Wages for workers.
(न्यूनतम समर्थन मूल्य और न्यूनतम वेतन को बढ़ाना) (More in 📑Pillar#4A)
 ⛽From Jan to May 2020: Aviation Turbine Fuel (ATF) prices reduced from ₹64 per litre to ₹23
per litter but hardly any change in petrol diesel because govt kept raising the excise and VAT
taxes. While this is justifiable for ↑ govt's revenue, BUT cheaper fuel is also necessary for revival
of the economy, and for ↓ stress on middle class’s pockets. (ईंधन के दामों को कम किया जाए)
 (+) Plus all the suggestions already given in the big mindmap for how to improve GDP.
 ++ Supply side reforms suggested by Economic Survey 2022 <learned in previous section>
✍️Conclusion: IF above suggestions are implemented, they’ll greatly help in catalysing / augmenting
the ATMANI in further revival of Indian economy.
✋ERROR: don’t digress into ‘governance/HRD’ part like we should encourage virtual courts, virtual
parliament, virtual classrooms. These are birbal-ki-khichdi in ‘economic revival’ of India Q. आपको प्रश्न
में जो पूछा गया है उसका जवाब दीजिए

🎓✋This is more than sufficient for 250 words answer. Additional effort in
PHD= poor cost-benefit. UNLESS they appear in new Economic survey.

👻✍🏻 Conclusion: ATMANIRBHAR (Appreciative Tone)

 Thus, ATMANIRBHAR focuses on the well-being of the poors, credit to MSME, ease of doing
biz for the corporate sector, reforms in agriculture and catalysing the development of
infrastructure. [No need to mention all the salient features in conclusion.]
 OR Thus, ATMANIRBHAR focuses on boosting the Supply and Demand side of the economy,
it also aims for improving the ease of doing business and ease of availing loans/credit. मांग और
आपूर्ति, व्यापार करने में आसानी, ऋण लेने में आसानी।
These reforms will certainly help in a long way to revive Indian economy in the aftermath of the
Corona pandemic crisis. कोरोनावायरस के बाद अर्थव्यवस्था को पुनर्जीवित करने में बहुत योगदान देगा.
48.1.2 🌻 GDP Growth what more should be done? as per ES23 📙
 Continue focusing on ease of doing business. deregulation and simplification
 MSME - easier /faster loan approval facility
 State govts have to address power/electricity sector issues
 Education and skill development.
 Healthy lifestyle to combat both 1) obesity 2) malnutrition
 supply chain reforms, acquiring metals and critical minerals e-vehicles etc.
 disinvestment and reduction of fiscal deficit
व्यापार में सुगमता, छोटे उद्योगों को आसानी से कर्जा मिले, बिजली समस्या दूर हो, शिक्षा और कौशल विकास पर ध्यान दिया जाए,
कु पोषण और मोटापे से लड़ो, महत्वपूर्ण खनिजो के लिए आपूर्ति श्रृंखला प्रबंधन, विनिवेश तथा सरकारी घाटे को कम करना - इन चीजो
पे सरकार ने ध्यान देना होगा।

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41.4 🌽⌚️🎧📈 GDP → $5 T RILLION → HOW TO ACHIEVE?: 📔📔ES STRATEGY

Savings It’s the Income excess of Consumption. Subdivided into Private Savings [by
बचत households & business firm] and Public Savings by Govt organizations.
 It's the domestic Savings + foreign money WHICH IS put in Real (physical)
Assets like machines, tools, buildings, office spaces, storehouses, roads, bridges,
airports and unsold inventory (ऐसा सामान जिसका निर्माण हुआ लेकिन बिका नहीं)
Investment
 In an Open Economy Country, Investment may become higher than
निवेश
(Domestic) Savings: - IF there is inflow of Foreign Capital.
 In a Closed Economy, Investment EQUAL = Savings [with many conditions
like 0% taxes, etc. but that MA(Economics) is not IMP]
Gross Fixed Capital Formation Rate (सकल निश्चित पूंजी निर्माण दर)
= INVESTMENT – DISPOSAL of assets (liquidation, condemnation).
GFCF
Thus, GFCF shows the net increase in physical assets. It IGNORES depreciation,
and land purchases.

41.5 📐INDIA AS A ‘DEVELOPED’ COUNTRY?

Following table shows GDP, CURRENT PRICES (IN BILLIONS OF US DOLLARS)

 15th August 2022: PM Modi Speech - Goal to become a developed country by 2047 when we
celebrates 100 years of independence.
 While there is no unanimous commonly accepted definition of developed country.
 United Nations, the World Bank, the World Trade Organization, and the World Economic
Forum use their indicators to club developed and developing countries.
 but some features of a developed nation are:
 GDP is very high. Per capita gross national income (GNI) very high.
 Standard of living and Human Development Index (HDI) very high.

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  Now what should India do, to become a developed country? Ans. recycle the points that we have
learnt / will learn across the six pillars.
भारत को 2047 तक एक विकसित देश बनाएं गे. हालाँकि विकसित देश की व्याख्या के बारे में अलग अलग सं स्थाओं में एकमत नहीं है.
लेकिन मुझे यक़ीन है अगले आर्थिक सर्वेक्षण में इस पर काफ़ी चर्चा होगी तब इसको हम आराम से देख लेंगे.

41.5.1 Bangladesh exiting LDC: what can India learn from Bangladesh?
 Bangladesh used low skilled workforce & female labourers tactfully to grow textile-jute industry.
 Jute products from Bangladesh are of better quality and more diversified than Indian jute
products. Need to focus on innovation and market research.
 Water sanitation facilities are better in Bangladesh so prevalence of disease/mortality is lower so
labourers more efficient. etc. (पानी और स्वच्छता बेहतर होने के कारण मजदूरों में बीमारी और मृत्यु कम.)

42 INCLUSIVE GROWTH (समावेशी विकास)

• (Definition) OECD defines Inclusive growth as the economic growth that is distributed fairly
across society and creates opportunities for all. (समावेशी विकास वह आर्थिक विकास है जो पूरे समाज में निष्पक्ष रूप से
वितरित होता है और सभी के लिए अवसर पैदा करता है।)

• UN Brundtland Report defined Sustainable development as the development that meets the needs
of the present without compromising the ability of future generations to meet their own needs.
(सतत विकास वह विकास है जो भविष्य की पीढ़ियों की अपनी जरूरतों को पूरा करने की क्षमता से समझौता किए बिना वर्तमान की
जरूरतों को पूरा करता है।)

42.1 📐👿 GDP & P ER CAPITA INCOME→ CRITICISM / LIMITATIONS

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42.1.1 GDP → Economic Growth vs Economic Development

Figure 1: क्या इस बच्चे को तैमूर जितना अच्छा खाना और शिक्षा मिलेगी?

Economic Growth Economic Development

📐आर्थिक वृद्धि 📐+ 💊🤰👨‍🏫आर्थिक विकास
It measures the ↑ in the production It measures whether economic growth has resulted in
of goods and services in a country. improving the quality of life & the socioeconomic
(सिर्फ उत्पादन में बढ़ोतरी) structure of the country? (जीवन स्तर में सुधार)
Quantitative measurement: gross Qualitative measurements such as UNDP’s HDI (Human
Domestic Product (GDP), Development Index), life expectancy, 🤰gender- related
Consumption, Government Spending,
Investment, Net Exports.
indices, infant mortality, 👨‍🏫literacy etc.
NNP divided by total population = per It’ll focus on ‘Inequality of income distribution’ e.g.
capita income. obtained through World Bank Gini coefficient or Oxfam
NGO’s Inequality report.(More in Pillar#6) 📑
In pillar#4 our focus is economic growth (GDP), whereas in pillar#6 we will be focusing on
Economic Development (Human aspect) and Sustainable Development (सतत विकास) i.e. development
that meets the needs of the present generation without compromising the ability of future
generations to meet their own needs.
42.2 INCLUSIVE GROWTH : CHALLENGES
42.3 INCLUSIVE GROWTH HAS TO BE SUSTAINABLE
PYQGSM3–2019: inclusive growth It is argued that the strategy of inclusive growth is intended to
meet the objectives of inclusiveness and sustainability together. Comment on this statement. (यह तर्क
दिया जाता है की समावेशी सं वृद्धि की रणनीति का आशय एकसाथ समावेशिता और धारणीयता के उदेश्यों को प्राप्त किया जाना है | इस
कथन पर टिपण्णी कीजिए |) Definition- given in previous section.

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42.3.1 How to make the growth sustainable?
- For inclusive growth we have to create well paying job opportunities for everyone. For this, SDG
Goals, NITI Aayog and successive economic surveys have suggested following Strategies for
inclusive growth:
- Economic survey suggested Jobs in textile and leather sector. These natural resources are
renewable in nature (unlike jobs in the mining sector). Further, textile industry has issued India
Handloom brand logo which ensure zero defect and zero (negative) impact on the environment.
- Fossil fuel will exhaust in future decades, so we have to focus on renewable energy and electric
vehicles → Job opportunities and sustainability angles are present. (आने वाले दशकों में जीवाश्म ईंधन तो
ख़त्म हो जाएगा इसलिए हमें स्वच्छ ऊर्जा और इलेक्ट्रिक वाहनों पर ज़ोर देना चाहिए.)
- NITI Aayog: circular economy : efficient use of raw materials and recycling. It can generate 1.4
crore jobs in 5–7 years. (परिक्रामी अर्थतंत्र: कच्चे माल का प्रभावी रूप से उपयोग और रिसाइक्लिंग किया जाए।)

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- Promote sustainable tourism that creates jobs and promotes local culture and products (पर्यटन)
- Focus on high-value added and labour-intensive sectors (श्रम बल पर ज़्यादा निर्भर क्षेत्रों पे ध्यान दिया जाए)
- End child labour in all its forms (बाल मज़दूरी को नाबूद किया जाए। )
- Upliftment of weaker section, social protection for workers (esp. informal, casual, gig workers)
- Goal #12: sustainable consumption and production : reduce waste generation through
prevention, reduction, recycling and reuse; halve per capita global food waste at the retail and
consumer levels (ज़िम्मेदार और वहनीय तरीक़े से उत्पादन व उपभोग किया जाए।)

42.3.2 Conclusion- inclusive growth and sustainability

• Thus, inclusiveness and sustainability are interwoven in the concept of inclusive growth. (इस
प्रकार से समोवेशिता व वहनीयता दोनों ही समोवेशी विकास में गुथे हुए है।)

• It’s for this reason we should focus on accomplishment of SDG goals and circular economy
on a war footing / priority basis. OR

42.4 REGIONAL IMBALANCE IN GROWTH

Q) Why has the planning process failed in reducing regional disparities in India? Give reasons.
(भारत में क्षेत्रीय असमानताओं को कम करने में योजना प्रक्रिया क्यों विफल रही है? कारण दे।)(Optional-Eco-2001)

Intro Define: Regional disparity / inequality = a situation GSDP, per capita income, economic
opportunities, infrastructure availability are not similar among regions/States.

 Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab and Tamil Nadu
same to perform well on above indicators compare to other regions. Due to following reasons:
 Coastal States = the British developed railway line, ports, highways, banking network, import
export opportunities.

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 Punjab- Haryana = benefited greatly from the Green Revolution.
 Eastern states, Sp. Cat States, NE = infra problems, inflexible labour laws,
 good governance harmed by aid-curse, resource curse.
 law and order issues / gunda raj / LWE / terrorism extremism = have discouraged investment
and entrepreneurship.
 Weak education system - skilled labour force.
 Natural disasters / annual floods / cyclones - Assam, Bihar, Odisha etc
 population control measures in Kerala vs population explosion in some states.
 influx of refugees in Eastern India.
 creation of smaller states for more decentralised planning = not materialised. Rather increase the
political instability e.g. Uttrakhand. (Refer to Mains 4C Handout for more).
Conclusion: Yes required to address this, to get 5 Trillion GDP and to become developed nation by
2047 and to reap India’s demographic dividend, and to prevent social unrest. SDG goal 10: reduce
inequality within country.

43 🍀📕ES24 ON GREEN GDP & GREEN FINANCE

➢ Green GDP is an economic measure that accounts for the environmental costs associated
with the production of goods and services within a country. (जब किसी देश में वस्तु व सेवा के उत्पादन में
पर्यावरण लागत ख़र्च को भी जोड़ा जाए तो उससे हरित जीडीपी नामक आर्थिक मानक बनता है।)
43.1 🍀📕ES24: I NDIA’S GREEN TARGETS BY 2030
➢ to reducing emissions intensity of GDP by 33–35% (from 2005 levels) (GDP की उत्सर्जन-तीव्रता
को कम करे)
➢ increasing the share of non-fossil fuel-based electricity to 40% (ग़ैर-जीवाश्म ईंधन वाली ऊर्जा का
उपयोग बढ़ाएं )
➢ enhancing forest cover to absorb 2.5 to 3 billion tonnes of carbon dioxide by 2030 (वन विस्तार
को बढ़ाएं जो कार्बन डायॉक्साइड को चूस सके ।)
➢ 🍀📕 Challenges to green transition of GDP as per ES24 📕
Issue 📕ES24: जीडीपी के हरीतीकरण में चुनौतियां
Optimal energy mix ऊर्जा के
Optimal energy mix between traditional and renewable sources.
विभिन्न स्रोतों में सही सं तुलन
Nuclear energy clarity Need clarity on the share of nuclear energy with respect to its cost and
(परमाणु ऊर्जा का ख़र्चा और सुरक्षा) safety.
Grid stability for E-
Ensure grid stability for E-Mobility (i.e. AC/DC current and 24/7
Mobility (बिजली वाहनों के लिए
availability of charging stations across the highways).
ग्रिड स्थिरता।)
Affordable battery storage
Battery storage technology at affordable costs.
(किफ़ायती दामों पर बैट्रिया)

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 Land and capital India’s needs for land and capital far exceed their availability. There is
constraints (ज़मीन और पूंजी की an opportunity cost involved when we utilize land and capital for
तंगी) renewable energy rather than for other commercial activities.
Deal with challenges posed by dependence on China for critical
Dependency on China (चीन
minerals (lithium, nickel, cobalt, etc.), which are crucial raw materials
पर निर्भरता)
needed for E-Mobility and renewable energy generation.
Cost of renewable energy Coal-electricity is cheaper than renewable. Input costs for factories
(स्वच्छ ऊर्जा की क़ीमत) will increase.
Economic impact of
phasing out coal (कोयला Bank-NPA and unemployment problems when we phase out coal
उपयोग कम करने पर आर्थिक mines and thermal power plants.
नुक़सान)
Railway revenue loss (रेलवे Indian railway earns large income from transporting coal. So if we
की आमदनी में गिरावट) phase out coal-electricity, it will impact the profitability of the railway.
Union and state governments earn huge tax revenue from the sale of
Fiscal impact of E-Vehicles
petrol and diesel, so replacing internal combustion engine (ICE)
(ई-वाहनों से सरकार की है न राजस्व
vehicles with electric vehicles will negatively affect the fiscal health/tax
आय में गिरावट)
income of the government.
✍️ Conclusion: need to address the aforementioned challenges of green finance to achieve (1) SDG
Goals (2) Our Nationally Determined Contribution to the UNFCCC. (सतत् विकास लक्ष्यों तथा यूएनएफसीसीसी
में हमारे राष्ट्रीय स्तर पर निर्धारित योगदान के लिए उक्त समस्याओं को अग्रता क्रम से सं बोधित करना होगा।।)
43.2 🍀 📕ES24: G REEN FINANCE (हरित वित्त)
➢ (Definition:) Green Finance refers to the investments to support environmentally sustainable
projects ( पर्यावरणीय रूप से टिकाऊ परियोजनाओं के लिए किया जाने वाले निवेश- उसे हरित वित्त कहते है. )
➢ (Sources) @Global level, major sources of green finance are - sovereign wealth funds, global
pensions, private equity, and infrastructure funds.
43.2.1 🍀📕 Green Finance challenges: CBAM (कार्बन सीमा समायोजन कर)
➢ Europe imposing Carbon Border Adjustment Tax. They’ll put higher taxes on Indian and
Chinese products to account for pollution. (कार्बन सीमा समायोजन कर)
➢ both the United Kingdom and the United States are in different stages of imposing their
versions of CBAM.
➢ These taxes are in contravention to the spirit of the Paris Agreement that recognised
‘Common But Differentiated Responsibilities’. (सामान्य लेकिन विभेदित जिम्मेदारियाँ’)
43.2.2 🍀📕 Green Finance challenges: not enough money
➢ investment support required by India to achieve its 2070 net-zero target will - be USD 1.4
trillion. Means average of USD 28 billion per year.

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 ➢ Source of Green Finance: 83% Indian(domestic) + 17% Foreign (2020). (वित्तपोषण स्रोत)
➢ So, India will have to allot 2.5% of its GDP to green finance. while we are struggling even to
allot 2.5% of GDP to public healthcare.
43.2.3 🍀📕 Green Finance challenges: Greenium/green premium
➢ Greenium refers to investors willing to accept lower interest for sustainable impact. (किसी हरित
प्रॉजेक्ट की सकारात्मक असर के चलते लिए एक निवेशक कितना नुक़सान सहने को तैयार है, उसे ग्रीनियम कहते हैं।)
Parameter Conventional Bond Green Bond-A Green Bond-B
Face Value $1,000 $1,000 $1,000
Coupon Rate 3% 2.7% 2.5%
Investor’s Return Difference Baseline -0.3% (Greenium) -0.5% (Higher Greenium)
Environmental Impact None Positive Greater Positive Impact
➢ When investor is willing to pay higher greenium (e.g. Green Bond-B) that means investor
has more trust/faith in the positive outcomes of the project. (निवेशक ज़्यादा प्रीमियम तभी देगा जब उसे
प्रोजेक्ट पर पूरा यक़ीन हो।)
➢ 📕 ES24 noted that despite securing a good rating on its green bond framework, Indian
sovereign green bonds have hardly received any ‘greenium’ from private investors. Probably
due to the issues of trust and transparency in India’s green projects. (भारत के सार्वभौम हरित बॉण्ड
की अच्छी रेटिंग के बावजूद उसे ज़्यादा ग्रीनियम नहीं मिल रहा।)
➢ 1st world’s Impact-investors/pension-mutual funds prefer to buy the green-bonds of
developed nations before pouring capital into 3rd world nations- which are marred by
corruption, mismanagement. (प्रथम विश्व के निवेशक विकसित देशों के हरित प्रोजेक्ट में पैसा लगाना ज़्यादा पसं द
करते हैं, क्योंकि तीसरे विश्व के देशों के ऐसे प्रोजेक्ट में भ्रष्टाचार और अव्यवस्था ज़्यादा रहती है।)
➢ India’s own insurance/pension/mutual funds cannot be expected to heavily invest in the
green bonds because fund managers need to generate higher return on investment for their
middle class clients - esp. to adjust for positive return against the inflation. otherwise, middle
class will shift the money to gold real estate instead of going to mutual fund. (भारत के ख़ुद के
म्यूचुअल फं ड आदि हरित प्रोजेक्ट में बहुत पैसा नहीं लगाएं गे क्योंकि उन्हें अपने क्लाइंट ग्राहक के लिए अच्छा मुनाफ़ा भी कमाना
है वरना ग्राहक स्वर्ण और रियल एस्टेट में चला जाएगा जहाँ पर उसे महँगाई की मुक़ाबले ज़्यादा बड़ा मुनाफ़ा दिखता हो।)
➢ There is misalignment between investor expectations (who want huge returns in shortest
time) versus lengthy gestation period before the particular green project becomes
operational and profitable. (ग्रीन प्रोजेक्ट को कार्यरत होने और मुनाफ़ा बनाने में बोहोत लंबा समय लगता है। ज़्यादातर
निवेशकों के पास इतना धैर्य/धीरज नहीं होता।)
43.2.4 🍀📕 Green Finance challenges: Depth of Corporate bond market
➢ Size of the corporate bond market in India, is smaller than other Asian emerging nations
such as Malaysia, Korea, and China.
➢ Indian corporate bond market lacks depth bcoz very limited number of retail and domestic
institutes, participate in it.(निवेशकों की कमी के चलते भारत के कॉर्पोरेट बॉण्ड बाज़ार की जड़ें गहरी नहीं है।)

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 ➢ need to explore blended finance: combining the public (govt), private and philanthropic
(NGO) funds towards social or environmental projects. (मिश्रित वित्त)
✍️Conclusion: need to address the aforementioned challenges of green finance to achieve (1) SDG
Goals (2) Our Nationally Determined Contribution to the UNFCCC.

44 🍅I NFLATION (महँगाई या मुद्रास्फीति)

 Inflation is the rise in the general level of prices of goods and services in an economy over a
period of time. (वस्तु और सेवाओं की सामान्य कीमतों में होने वाली बढ़ोतरी को महंगाई या मुद्रास्फीति कहते हैं)
 Deflation is inverse of above definition. Deflation occurs when the inflation rate falls below 0%
(मुद्रा अवस्फीति- महंगाई जब 0% से भी कम हो जाए)
 (DATA) while economic growth is accompanied with some level of inflation, but a rate of
inflation, greater than 6% is considered to be harmful for the economy and consumers in
general. Indian economy witnessed >6% CPI inflation in 2022 continuously for more than nine
months.
44.1 INFLATION - MAJOR REASONS IN INDIA

- Agriculture: El-Nino, Climate change, disasters, pests, bottlenecks in APMC, large number of
middlemen, shortage of cold storage infra, faulty-MSP policies discouraging the growth of pulses
and vegetables, climate change etc.
- Real Estate: corrupt people use the black money to purchase homes for “investment purpose”
thereby driving up the prices for honest people. (also, RBI is cheap money policy may cause a
similar effect, when rich people corner the loans to buy up all good houses- said a member of
MPC committee.)
- Revenue deficit by government for delivering ‘revdi/freebies’/ subsidy leakage → this thing in to
increase the demand without increasing the supply.
- - External factors: Taiwan (Chips), Export ban by edible export ban by Indonesia Malaysia,
o USA Fed Tapering resulting into stronger dollar & imposed inflation, etc.
o Corona Un-lockdown → demand in 1st world ↑ → inflation ↑
o OECD group ↓ oil supply & geopolitical crisis (Ukraine) → ↑ oil prices.

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- Taxation: high-level of taxes on petrol and diesel increasing the cost of transportation.
- Mfg side: Direct jump from agriculture to Service sector. Neglect of the manufacture goods,
particularly electronic items. So we are more reliant on imports → CAD BOP Weak Rupee
imported inflation.
- Service sector: Rent seeking behaviour in private schools, colleges and hospitals.
- During Corona-2020- Number of home sales ↓ but price of home is not declined (meaning,
sellers were not willing to reduce prices) (कोरोना में मकानों की ख़रीदारी तो कम हुई थी लेकिन भाव कम नहीं हुए)
- Post-Corona-2021: Banks ↓ home loan interest rates + Union Govt is giving home loan subsidy
+ State govts have ↓ the stamp duty tax on home buying → Housing demand ↑ → so
housing prices are ↑ (अभी वापस बैंक लोन सस्ते होने के कारण, तथा कें द्र और राज्य सरकारों की योजनाओं के चलते मकानों
की बिक्री बढ़ रही है, माँग बढ़ रही है और उसके चलते मकानों के दाम बढ़ रहे हैं )
44.2 PYQ → RBI & FOOD INFLATION (10M, 2024)
Q. What are the causes of persistent high food inflation in India? Comment on the effectiveness of the
monetary policy of the RBI to control this inflation. भारत में निरंतर उच्च खाद्य मुद्रास्फीति के कारण क्या हैं? इस
प्रकार की मुद्रास्फीति को नियं त्रित करने में आर० बी० आइ० की मौद्रिक नीति की प्रभावशीलता पर टिप्पणी कीजिए। (2024-Mains)
• (Origin) after the green revolution, India achieved food security, but seasonal spikes in the
food and vegetable prices remains an Achilles heel
• (Data) 2023–24: consumer food price has remained greater than 7%.
44.2.1 Reasons for high food inflation in India
• El Niño, Drought years. Shortage of irrigation infrastructure
• infrastructure challenges in supply and storage of perishable commodities.
• APMC middlemen profiteering and hording of onions, sugar etc.
• Global warming harms the tomato flowers.
• MSP policies focus on wheat, rice → pulses cultivation area reduced.
• Russia Ukraine imported fertiliser expensive, imported edible oils expensive.
• rising middle class, growing need for diverse food, but local supply of oil insufficient.
• Milk expensive: cost of fodder, death of cattle in Lumpy Skin disease.
• many more factors can be written, but we have to do only 150 words.
44.2.2 RBI effectiveness against food inflation
• RBI can do little to combat food inflation because
• Food inflation in India is mostly supply side problem.
• Whereas The tools of RBI monetary policy mainly deal with controlling the money supply,
loan interest rate and subsequently the demand.
• Many farmers rely on informal money lenders, so even if RBI made the loans more cheaper,
it is unlikely to improve the production at grassroot.
• 2023 onwards: RBI hiked repo from 4.00% to 6.50% to combat inflation and yet only after
the harvest season, there is some cool down in the vegetable prices. Proving that RBI has no /
little effect on this, and it’s mostly a supply side problem.

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✍️ Conclusion: To control the food inflation in sustainable manner, government needs to undertake
fundamental reforms in infrastructure, MSP and APMC Mandis. RBI alone cannot do much here.

44.2.3 🍅📈Inflation- politically unavoidable, socially harmful, economically useful?

Q) “Inflation is economically useful, socially harmful and politically unavoidable in India today.”
Elucidate. "मुद्रास्फीति आज भारत में आर्थिक रूप से उपयोगी, सामाजिक रूप से हानिकारक और राजनीतिक रूप से टाली न जा सके
एसी है।" (Optional-Economics-2001)

Answer hint given in previous mindmap on previous page.

44.3 INFLATION: HOW TO FIGHT (मुद्रास्फीति से कै से लड़ा जाए?)

🍅📈Fighting inflation 🍅📉 Fighting deflation
RBI Tight / dear / Hawkish Monetary Policy to Cheap / Easy / Dovish - to make loans
🐯 make the loans expensive cheaper
Govt - 🍋 Tax deduction / exemption / - 🍋 Tax deduction / exemption / subsidy
🦁 subsidy benefits towards producers to type benefits to consumers to encourage
decrease the cost of production. purchase / consumption. (e.g. cut GST
- Curtailing Fiscal Deficit. on Television, Computers, Cars) खरीदारी
- Curtailing schemes/subsidies that ↑ को प्रोत्साहन देने के लिए कर-छू ट/सब्सिडी

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 🍅📈Fighting inflation 🍅📉 Fighting deflation
money in the hands of beneficiary - Increasing the expenditure on public
without increasing production. projects e.g. highway, dam etc. to boost
- 🗃 Ordering RBI to issue inflation demand in steel / cement industry →
Indexed Bonds, Sovereign Gold Bonds workers get money → demand →
- Essential commodities act, Stock towards inflation. बुनियादी अवसं रचना पर
limits, Minimum Export Price, FCI’s सार्वजनिक खर्च को बढ़ाया जाए
Open Market Sale Scheme, Operation
Greens for TOP, Price stabilization
fund, Offering higher MSP to farmers
to ↑ cultivation of a particular crops
- Banning export of essential
commodities e.g. rice / wheat.
ES22 suggested We should sign long-term import agreements / memorandum of understandings
(MoUs) with other nations for purchase of pulses and edible oils. (अन्य देशों के साथ लंबी अवधि के क़रार पर
दस्तख़त किया गया है कि वे हमें नियमित रूप से दाल और खाद्य तेल बेचते रहें, ताकी भारत में उन चीजों की क़ीमतें नियंत्रण में रहे।)

44.3.1 📕🧅 ES24: inflation observations

• India was the only country amongst its peers to traverse a high-growth and low-inflation
path in the period FY22 – FY24 (बाक़ी देशों के मुक़ाबले भारत में महँगाई को क़ाबू में रखा है।)
• 2022–23: RBI increased repo by 2.50% (250 bps) to combat inflation.
• Union Govt’s inflation control steps: (1) FCI open market sales of food grains (2) retailing
Bharat Atta/Daal etc (3) timely imports of onion, edible oils (4) reduced the prices LPG
cylinders by increasing the subsidy (5) reduced the prices of petrol and diesel by decreasing
the excise duty.
• Food inflation points are given in Ref: Pillar#4A.
📕
• Remaining ES24 chapter is about timepass talk on Russia-Ukraine, core-vs-headline,
comparison of rural versus urban inflation etc.
44.4 LOW INFLATION = ECONOMY IN GOOD SHAPE?
(PYQ-GSM3–2019) Do you agree with the view that steady GDP growth and low inflation have left
the Indian economy in good shape? Give reasons in support of your arguments. (क्या आप इस मत से
सहमत हैं की सकल घरेलू उत्पाद (जी. डी. पी) की स्थायी सं वृद्धि तथा निम्न मुद्रास्फीति के कारण भारतीय अर्थव्यवस्था अच्छी स्थिति में है
? अपने तर्कों के समर्थन में कारण दीजिए |)

- (Origin) After Independence, our GDP growth rate remained muted and inflation sometimes
crossed double digit numbers due to wars and droughts. However, in the recent years, this has
stabilized. (आज़ादी के बाद कई वर्षों तक हमारा आर्थिक वृद्धि दर कम था और महँगाई दर बहुत ज़्यादा था। हालाँकि हाल के वर्षों
में इन दोनों में स्थिरता आयी है।)
- (Data) In the present decade, India’s average GDP growth rate has been around 7% and average
inflation around 5% barring Corona year 2020. (वर्तमान दशक में, कोरोना वर्ष को नज़रअंदाज़ करते हुए, हमारा
औसत आर्थिक वृद्धि दर क़रीब 7% और औसत महँगाई दर क़रीब 5% रहा है )

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- However, despite this good numbers, economy is not entirely in good shape, because of the
following reasons: (किन्तु फिर भी हम ये नहीं कह सकते कि अर्थतंत्र बहुत ही अच्छे आकार में है क्योंकि,)
Pillar1  Twin Balance Sheet syndrome and NPA, ILFS & NBFC Crisis. (Although FM
said in 2023-July: twin balance sheet syndrome is mostly solved.) (अनर्जक
परिसं पत्तियों की समस्या का हल बाक़ी है।)
 yet to achieve hundred percent financial inclusion. (सबका वित्तीय समावेशन बाक़ी है)
Pillar2  - After demonetisation the number of tax assessees have increased but there has
not been a corresponding great increase in tax collections. Less than 3% voters
pay income tax. Consequently, government is struggling to meet the fiscal
deficit target and the FRBM deadlines have been shifted. (मुश्किल से 3% से भी कम
मतदाता आयकर भरते हैं, परिणामस्वरूप सरकार अपने राजकोषीय घाटे को कम नहीं कर पाती।)
 GST collections shows improvement in some months because of the festive
season and pent-up demand. Otherwise tax:GDP has no significant
improvement. Our tax to GDP is hardly 10–11% (त्योहारों के दौरान तो GST आमदनी में
वृद्धि दिखती है किन्तु कर:जीडीपी अनुपात में अभी भी उम्मीद के हिसाब से वृद्धि नहीं हुई।)
 Sharemarket fallen after Fed-Tapering and FPI exit = difficult for government to
achieve disinvestment target due to low prices of shares. (अमेरिकी फे ड टेपरिंग के चलते
भारत का शेयर बाज़ार गिर जाता है, जिसके चलते सरकारी कं पनियों के शेयर भी गिरे जाते हैं, और सरकार को
अपने विनिवेश के लक्ष्यों को को हासिल करने में असफलता मिलती है।)
Pillar3  OPEC oil prices vs imports, protectionism vs exports. (कच्चे तेल की बढ़ती क़ीमतें और
सं रक्षणवाद।)
 Geopolitical events / wars in Ukraine, Taiwan, Palestine have increased the
prices for imported raw materials and key inputs such as fertiliser, micro
processor chip, crude oil. (भू-राजनीतिक घटनाओं के चलते आयातित कच्चे माल की क़ीमतों में
बढ़ोतरी।)
 Rupees weakened against dollar from 74 (in 2020) to 82 Rs/ dollar (2023) due to
US Fed Tapering. While a weak rupee is considered good for exports but
because of increase the inflation, this is not helping. (डॉलर के मुक़ाबले रुपया कमज़ोर हो
रहा है जिससे आयातित महँगाई की समस्या बढ़ती है।)
Pillar4A  Food sector: inflationary trend, creating distress for poor and middle-class.
Agitations related to farm loan waivers have increased in recent years. (किसानों का
कर्ज़ा माफ़ करने के लिए आंदोलनों में बढ़ोतरी। खाद्य महँगाई दर में बढ़ोतरी।)
 Agriculture: majority of the farmers income barely Rs.10,000.
 Sugar cane and dairy farmer Problems that we learned in Pill4A (AGRO).
(अधिकतर किसान मुश्किल से 10, हज़ार रुपये महीने कमा पाते हैं। वर्तमान वर्षों में गन्ना किसान और डेयरी
किसानों की समस्याएं भी काफ़ी बड़ी।)
Pillar4BCD  - Unemployment rate has steadily decreased from 6% (2017-18) to 3.2% (2022-
23) but majority of the workers are employed in the unorganised sector, thereby
deprived of good salaries and social protection. (हालाँकि बेरोज़गारी दर में कमी आ रही है
किं तु ज़्यादातर नौकरियां और सं गठित क्षेत्र में मिलती है जहाँ न तो वेतन अच्छा है ना नौकरी की सुरक्षा)

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  Consequently, Youth remains obsessed with government jobs and agitations
related to reservation demands have increased in recent years.
 If youth spend 5 years giving in government job exams only, difficult to reap
demographic dividend. ( इसलिए कई विधार्थी/स्नातक सरकारी नौकरी की चाह में युवा अवस्था के कई
वर्ष बर्बाद करते हैं, और आरक्षण के लिए भी आंदोलन बढ़ रहे है।)
 IIP index number show percentage wise improvement, but mostly because of
the low-base effect in the Post Corona 2020–21, otherwise many sectors yet to
achieve pre-Covid level growth numbers in absolute terms. (% looks good due
to base-effect) (आईआईपी के प्रतिशत अंकों में वृद्धि देखी गई है परंतु वह 'बेज-इफ़े क्ट' के चलते हैं।)
Pillar5  infrastructure backwardness in certain parts of the country continues to remain
a cause of concern. (अभी भी भारत के कु छ इलाकों में बुनियादी अवसं रचना की कमी है।)
 PPP - some of the projects become financially non-viable / Service charges on
the users increased e.g. airport parking fees, toll-fees. (Ref#Pillar5) (सार्वजनिक निजी
भागीदारी में बनाए गए कु छ प्रॉजेक्ट अपेक्षा के अनुसार सफल नहीं हो रहे अंततः ग्राहकों पे ज़्यादा फ़ीस का
बोझ डाला जा रहा है, जैसे कि हवाई अड्डे पर गाड़ी पार्क करने की शुल्क।)
Pillar6  Poverty reduced but inequality & malnutrition increased. All workers not
getting the minimum wages.(Data in Pillar6) (यद्यपि ग़रीबी में तो कमी हुई है किं तु असमानता
और कु पोषण की समस्या बढ़ी है। सभी मज़दूरों को न्यूनतम वेतन भी नहीं मिल रहा।)
✍️Conclusion: Thus, despite a steady GDP growth and low inflation, Indian economy can’t be called
being in a ‘good shape’ because of the challenges created by 1) Exchange rate volatility caused by
External Factors 2) Crisis in the Banking & NBFC sector 3) Inadequate growth in revenue collections
and consumer demand 4) challenges related to lack of well-paying jobs, equality and nutrition. (इस
प्रकार से यद्यपि भारत की आर्थिक वृद्धि दर में बढ़ोतरी हुई महँगाई में कमी हुई किन्तु फिर भी अर्थतंत्र को बोहोत अच्छे आकार में है ऐसा नहीं
कहा जाता क्योंकि १) बाह्य कारणों के चलते विनिमय दर में अस्थिरता २) बैंक और ग़ैर बैंक क्षेत्र में सं कट ३) कर-आमदनी और उपभोक्ता
माँग में अपेक्षाकृ त बढ़ोतरी न होना और ४) देश में समानता, पोषण और अच्छी वेतन वाली नौकरियों की कमी है।)

44.5 📕 ES24: S UGGESTIONS TO IMPROVE THE STATISTICAL DATABASE

Core Keyword Statement
CPI base year (CPI Need to change the base year of CPI from 2012 to 2024. Similarly, the
आधार वर्ष) base year of Index of Industrial Production (IIP) needs to be updated.
Need high-frequency price monitoring data. Need to track the build-up of
Food-inflation (खाद्य prices at each stage from the farm gate to APMC Mandi to the final
मुद्रास्फीति) consumer. This will help the government to take better steps against food-
inflation.
More than 1.3 crore entities are registered under GST. Need to analyze
GST data analysis (GST the granular GST data (e.g., District wise, city wise, etc.) → It’ll help
डेटा विश्लेषण) analyze the health of businesses, screening of loan applications, and
regional development.

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 Fiscal statistics portal Need a public web portal for fiscal statistics of the Union and the States, in
(राजकोषीय सांख्यिकी पोर्टल) downloadable database formats.
MSME indicators
MSME: Need regular indicators of production and employment.
(MSME सं के तक)
Loans: Industry-wise gross disbursement of bank credit, industry-wise
Loans data (ऋण डेटा) monthly gross financial flows through domestic and external equity
(shares) and debt (Bond) routes.
Infrastructure financial
Financial flows to infrastructure - both sectorally and geographically
flows (इन्फ्रास्ट्रक्चर वित्तीय
differentiated.
प्रवाह)
Pradhan Mantri Jan Arogya Yojana and Ayushman Bharat Digital
Health data capture Mission: Capture details of hospital admissions, patients’ medical history
(स्वास्थ्य डेटा सं ग्रह) or demographic details. Use it for disease surveillance, preventive
medication, etc.
Labour Bureau is doing five surveys relating to workers but need to ensure
Labour Bureau surveys
that surveys are completed in a timely manner and the database released
(श्रम ब्यूरो सर्वेक्षण)
to the public is in a user-friendly format.
✍️ Conclusion: To make good economic policies, we require accurate data sets. Therefore,
aforementioned reforms are need of the hour.
44.6 ✍🏻M OCK QUESTIONS RELATED TO GDP AND INFLATION

44.6.1 ✍🏻Handpicked from Economics Options

(1) “Inflation is economically useful, socially harmful and politically unavoidable in India today.”
Elucidate. (2001) ("मुद्रास्फीति आज भारत में आर्थिक रूप से उपयोगी, सामाजिक रूप से हानिकारक और राजनीतिक रूप से अपरिहार्य
है।")
(2) Explain the nature of causes of inflation in India. Critically appraise the measures adopted by the
authorities to control it. (2007) (भारत में मुद्रास्फीति के कारणों की प्रकृ ति की व्याख्या करें। अधिकारियों द्वारा इसे नियंत्रित करने
के लिए अपनाए गए उपायों का गंभीर रूप से मूल्यांकन करें।)
(3) What are the causes of inflation in India? Suggest appropriate policy-mix to keep prices in check.
(भारत में मुद्रास्फीति के कारण क्या हैं? कीमतों को जांच में रखने के लिए उपयुक्त नीति का सुझाव दें।)
(4) Second generation economic reforms are crucial for raising the growth rate of economy. Throw light
on these dimensions. (2014) (अर्थव्यवस्था की विकास दर बढ़ाने के लिए दूसरी पीढ़ी के आर्थिक सुधार महत्वपूर्ण हैं। इन आयामों
पर प्रकाश फें कें ।)
(5) Write on second-generation economic reforms in India. (2017) (भारत में दूसरी पीढ़ी के आर्थिक सुधारों पर लिखें।)
(6) Make an appraisal of economic reforms in India. What has been their impact on GDP growth,
employment and poverty. (2004) (भारत में आर्थिक सुधारों का मूल्यांकन करें। जीडीपी वृद्धि, रोजगार और गरीबी पर उनका
प्रभाव क्या रहा है।)

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 (7) India is a paradoxical case of low growth rate despite high rate of saving and investment. Comment
and account for low growth rate briefly.(2001) (बचत और निवेश की उच्च दर के बावजूद भारत कम विकास दर का एक
विरोधाभासी मामला है। इसपे टिप्पणी करे और कम विकास दर के कारण सं क्षेप में बताए।)
(8) Comment on the trends of savings and capital formation in India. What reasons account for slow
growth-rate in spite of high savings? (भारत में बचत और पूं जी निर्माण के रुझानों पर टिप्पणी करें। उच्च बचत के बावजूद धीमी
वृद्धि दर के लिए क्या कारण हैं?)
(9) Do you think that a combination of moderate inflation, low interest rates and healthy capital markets
has set the Indian economy on the path of accelerated growth? (2006) (क्या आपको लगता है कि मध्यम
मुद्रास्फीति, कम ब्याज दरों और स्वस्थ पूं जी बाजारों के सं योजन ने भारतीय अर्थव्यवस्था को त्वरित विकास के मार्ग पर स्थापित किया है? )
44.6.2 Mock Questions and PYQ from GS
1) What are the causes of persistent high food inflation in India? Comment on the effectiveness of the
monetary policy of the RBI to control this inflation.
👻
2) “Atma Nirbhar Bharat is not just a mere fiscal stimulus package but also a set of reforms for ease of
doing business and ease of availing credit” Elaborate (सिर्फ राजस्व प्रोत्साहन नही, बल्कि व्यापार और ऋण मे सुगमता भी है।)
👻
3) Suggest reforms in addition to ATMANIRBHAR for revival of Indian Economy. (आत्म निर्भर भारत के अलावा
और क्या-क्या सुधार करने चाहिए अर्थव्यवस्था को पुनर्जीवित करने के लिए?)
4) “Creation of national wealth through ethical means will help us in a long way to achieve SDG.” Illustrate.
नैतिक तरीकों से राष्ट्रीय धन का निर्माण करने से हमें सतत विकास लक्ष्य हासिल करने में मदद होगी. समझाइए
5) Discuss briefly the challenges associated with achieving the five trillion dollar economy for India by 2025?
5 ट्रिलियन डॉलर अर्थव्यवस्था का लक्ष्य हासिल करने में चुनौतियां
6) Explain the difference between computing methodology of India's gross domestic product (GDP) before
the year 2015 and after the year 2015. (asked in 2021) भारत की सकल घरेलू उत्पाद (जी. डी. पी.) के वर्ष 2015 के पूर्व तथा
वर्ष 2015 के पश्चात परिकलन विधि में अंतर की व्याख्या कीजिए। (Hint: not humanly possible to answer this. Because it
was asked in 2021 about technical reforms taken in 2015. However, to satisfy your curiosity, I am given
the answer in the Prelims handout.)
7) Do you agree that the Indian economy has recently experienced a V-shaped recovery? क्या आप सहमत हैं की
भारतीय अर्थव्यवस्था ने हाल ही में V-आकार के पुनरुत्थान का अनुभव किया है? कारण सहित अपने उत्तर की पुष्टि कीजिए । (Hint: “k-
shaped recovery, because some of the contact-sensitive service sectors e.g. hotel/tourism yet to reach pre-
Corona level)
8) (GSM3) Define potential GDP and explain its determinants. What are the factors that have been
inhibiting India from realizing its potential GDP? (सं भाव्य स.घ.उ.(जी.डी.पी.) को परिभाषित कीजिए तथा उसके निर्धारकों की
व्याख्या कीजिए l वे कौन-से करक हैं, जो भारत को अपने सं भाव्य स.घ.उ.(जी.डी.पी.) को साकार करने से रोकते रहे हैं?)
9) Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree?
What are the other factors available for growth potential? भारत के विकास दर में बचत दर एक अति महत्वपूर्ण कारक है?
10) (GSM3-2019) Do you agree with the view that steady GDP growth and low inflation have left the Indian
economy in good shape? Give reasons in support of your arguments. क्या स्थिर वृद्धि दर तथा कम मुद्रास्फीति ने भारत
की अर्थव्यवस्था को अच्छी आकार में रखा है? अपनी दलीलों को कारणों के साथ स्पष्ट कीजिए?
11) Examine the impact of the rise of ‘far right’ political ideology in the West on the Indian economy. (पश्चिमी
देशों में 'अति दक्षिणपं थी' राजनीतिक विचारधारा के उदय के भारतीय अर्थव्यवस्था पर प्रभाव की जांच करें।)
12) Suggest policies for India to navigate through the uncertain era of de-globalisation. (ग़ैर-वैश्वीकरण के अनिश्चित
युग भारत के पथदर्शन हेतु नीतियों का सुझाव दें।)
13) "The path of green transition for the Indian economy is laden with many thorns." Comment. ("भारतीय
अर्थव्यवस्था के लिए हरित-गमन का मार्ग कांटों से भरा है।" टिप्पणी करें।)
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