Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAPEX
Mains level: Capital Expenditure by the Centre and states
Central Idea
- The budget’s clear thrust towards capital expenditure is evident in the 33% increase in its allocation. The primary goal of this allocation is to bolster aggregate demand in the short term and enhance the economy’s productive capacity in the long term. This strategy is widely regarded as beneficial, especially considering the crucial role that infrastructure plays in the growth and development of any economy.
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Capital Expenditure of the states
- Capex of the states exceed than the central govt: The combined spending of Indian states on capital expenditure now exceeds that of the central government.
- For example: In 2021-22, this figure combined for states and Union territories, according to budget estimates, was ₹10.5 trillion. The Centre’s effective capital expenditure that year was ₹8.4 trillion, including ₹2.5 trillion as grant for creation of assets.
What is Capital Expenditure (CAPEX)?
- Capital expenditure refers to investments in upgrading existing or building new physical assets by the government or private businesses.
- As businesses expand, capex has a multiplier effect on the economy, creating demand and unleashing animal spirits.
Main types of Capex
- Infrastructure development: This includes building and upgrading public infrastructure such as roads, highways, railways, ports, airports, power plants, and water supply systems.
- Defence and security: This involve the acquisition and maintenance of defence equipment, weapons systems, and other security-related investments.
- Social sector spending: This includes investment in areas such as education, healthcare, and social welfare programs to improve the quality of life of the citizens.
- Rural development: This includes spending on agricultural and rural infrastructure such as irrigation systems, rural electrification, and rural housing.
- Capital investments in public sector enterprises: The government may also invest capital in public sector enterprises to improve their efficiency and profitability
Key reasons why the Indian government emphasizes Capex?
- Promoting economic growth: Capital expenditure is critical for promoting economic growth by creating demand for goods and services, boosting private sector investment, and increasing employment opportunities. By investing in infrastructure, the government can provide the necessary framework for businesses to grow and thrive.
- Improving public services: Capital expenditure is required to build and upgrade public facilities such as hospitals, schools, and water supply systems, and provide necessary equipment and supplies. This investment in public services is crucial for improving the quality of life of citizens and promoting social and economic development.
- Infrastructure development: It is critical for promoting trade, commerce, and investment, and improving the country’s overall competitiveness. By investing in infrastructure, the government can create new economic opportunities, support the growth of existing industries, and attract foreign investment.
- Creating employment opportunities: Capital expenditure creates employment opportunities in the short term through the construction of infrastructure projects and in the long term by supporting economic growth and promoting private sector investment.
- Attracting private sector investment: The government’s emphasis on Capex can also help attract private sector investment by providing the necessary infrastructure and a favourable business environment.
What are the concern over State capex?
- Uneven capacity CAPEX: One general macro-economic challenge is to address this uneven inclination of states or capacity for capital expenditure, which adds uncertainty to the impact of an expansionary fiscal policy led by capex, thus weakening its potential benefits.
- The ultimate aim of all CAPEX is to enhance the productive capacity of the economy: The nature of state capital expenditure drawn in is also vitally important. Ideally, the nature of state capital expenditure drawn in by central capital expenditure should be such that it dovetails with the latter to optimize long-term enhancements of economic capacity.
- States have tendency to postpone capex: The Union budget for 2023-24 encourages states to make reforms in urban local bodies to become creditworthy for municipal bond issuance. However, states have a tendency to postpone capital expenditure until revenue streams firm up.
- States need to improve their execution capacity and establish an enabling regulatory environment to ensure quality and speed of expenditure.
- The planning and budgeting cycle of states should also be aligned with fund releases to fully utilize resources within the available time.
- States play a crucial role in capital expenditure and must not only budget more but also spend fully and uniformly throughout the year.
Conclusion
- States need to prioritize timely and efficient execution of capital expenditure and fully utilizing budgeted capital amounts uniformly throughout the year. The RBI report, while acknowledging that Indian states made higher capital outlays in 2022-23, notes that states would do well to mainstream capital planning rather than treating them as residuals and first stops for cutbacks in order to meet budgetary targets.
Mains Question
Q. What do you understand by Capital Expenditure (CAPEX)? Highlight the concerns over capex by the states and suggest a way ahead.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Constituent assembly
Mains level: Women participation in constituent assembly
Central idea
- The process of drafting our Constitution during Partition and after a long period of colonization was a magnificent and dynamic process. Despite being part of the Assembly, voices and contributions of women have been neglected and overshadowed. The riveting work by Achyut Chetan,” The Founding Mothers of the Republic” published by Cambridge University Press in 2022 serves as a means of rectifying this historical omission and giving due credit to the women who played a crucial role in shaping India’s democracy.
Women In constitutional Assembly
- When the Constitution was completed, there were 11 women members of the Constituent Assembly who signed onto it.
- These drafters were G Durgabai, Ammu Swaminathan, Amrit Kaur, Dakshayani Velayudhan, Hansa Mehta, Renuka Ray, Sucheta Kripalani, Purnima Banerjee, Begum Qudsiya Aizaz Rasul, Kamala Chaudhri and Annie Mascarene.
- The Constituent Assembly first met on December 11, 1946 and had 169 sessions before all its members signed the document on January 24, 1950
How do we know what happened in the Constituent Assembly?
- Constituent Assembly Debates (CAD) is the only source: A rich but by no means the only source is the 12 volumes of the Constituent Assembly Debates (CAD), consisting of speeches made by members and the amendments to the draft articles.
- CAD misses no. of reports and notes pf various committes: However, what the CAD does not have are the reports and notes of the various committees of the CA.
- For instance: Much groundbreaking work was done in the Advisory Committee (chaired by Vallabhbhai Patel), which in turn had two sub-committees the Fundamental Rights Sub Committee and the Minorities Sub-Committee.
Role of Women in the constituent assembly
- Hansa Mehta and Amrit kaur: Hansa Mehta and Amrit Kaur were on the Advisory Committee, with both being members of the Fundamental Rights Sub Committee and Kaur serving also on the Minorities Sub-Committee.
- G Durgabai: G Durgabai occupied effective positions on two important committees on procedural affairs The Steering Committee and the Rules Committee.
- Women were highly active: Women members were present and highly active on almost all significant committees and subcommittees.
- Women members often faced disrespect and discrimination: For instance, Renuka Ray opposed the clause on the Right to Property which put the compensation given within the purview of courts. During the debates on the floor of the Assembly too she was constantly interrupted and heckled even by the men of the eminence and tried to deride their amendments
- Women members made their opinions known and stood firm: In the settings of the committees they wrote notes of dissent, Amrit Kaur and Hansa Mehta wrote notes of dissent against decisions that relegated the uniform civil code to the non-justiciable rights, allowed the state to impose conscription for compulsory military service, at each stage when the committees made their official recommendations to the higher bodies of the Assembly
For Instance: Views of Dakshayani Velayudhan on reservation
- Dakshayani Velayudhan, the only woman member from the Scheduled Castes communities, argued against reservations.
- She refused by saying “to believe that 70 million Harijans are to be considered as a minority and argued that reservations would not be in the best interests of them.
- She also argued that “the working of the Constitution will depend upon how the people will conduct themselves in the future, not on the actual execution of the law. When this Constitution is put into practice, what we want is not to punish the people for acting against the law, but for the state to take on the task of educating citizens for a transformation.”
- Representative governments increased but women count remains low: According to UN Women, as of September 2022, there were 30 women serving as elected heads of state and/or of government in 28 countries (out of a total of 193 UN member states).
- Dichotomy in active participation: There is the dichotomy between the rapid increase of women’s participation as voters in elections and other political activities, and the slow rise of female representation in Parliament.
- Global average women representation: As of May 2022, the global average of female representation in national parliaments was 26.2 percent.
- Above average representation: The Americas, Europe, and Sub-Saharan Africa have women’s representation above the global average;
- Below average representation: Asia, the Pacific region, and the Middle East and Northern Africa (MENA) region, are below average.
- Varied representation within Asian countries:
- The South Asian countries faring worse than the others.
- IPU data of May 2022 showed that women’s representation in Nepal, for example, was 34 percent, in Bangladesh 21 percent, in Pakistan 20 percent, in Bhutan 17 percent and in Sri Lanka 5 percent.
- For India, women’s representation in the Lok Sabha (the Lower House) has remained slightly below 15 percent.
- The study does not include Afghanistan, but World Bank data of 2021 stated that female representation in the country’s last parliament was 27 percent.
Conclusion
- As we approach 75 years of our Constitution, it’s time for scholars, teachers, students, lawyers, judges and all others who engage with our constitution-making efforts to look to sources that tell a more complete story of our drafters. The quiet women and the more visible men should both be recalled, for their roles and their contributions. That would be an accurate telling of how our founding document came to be.
Mains Question
Q. The role of women in constitution making has often been neglected. In light of this illustrate the participation of women during India’s constitution making process.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Renewable Energy
Mains level: Distributed Renewable Energy and women , advantages and challenges
Central Idea
- Women from rural India are adopting clean energy-based livelihood technologies to catalyse their businesses. From solar refrigerators to silk-reeling machines and biomass-based cold storage to bulk milk chillers, distributed renewable energy (DRE) is transforming women’s livelihoods at the grassroots.
What is Distributed Renewable Energy (DRE)?
- DRE refers to the generation and distribution of electricity from renewable energy sources, such as solar, wind, hydro, geothermal, and biomass, through small-scale, decentralized systems.
- These systems are often installed in remote or rural areas where it is difficult or expensive to connect to a centralized power grid.
- DRE systems can range from individual rooftop solar panels to small-scale wind turbines, mini-hydro systems, and biomass generators.
- They are typically designed to serve a single household or community, rather than a large urban or industrial center.
- DRE systems are also known as off-grid or mini-grid systems, and they can be standalone or connected to a larger power grid.
Recent Statistics
- More than 80% are women: A recent Council on Energy, Environment and Water (CEEW) study has shown that out of the 13,000 early adopters of clean tech livelihood appliances, more than 80% are women.
- Future projection: By 2030, India is expected to see 30 million women-owned micro, small and medium enterprises (MSMEs) employing around 150 million people. DRE livelihood technologies a $50 billion market opportunity in India alone have the potential to transform rural livelihoods, with women at the core of this transition.
Advantages of DRE systems
- Several advantages: They are more resilient to natural disasters and grid failures, they can reduce energy costs for communities and households, and they can increase energy access in areas that are not served by the main power grid.
- Reduce carbon emissions: Additionally, DRE systems can reduce carbon emissions and help to mitigate the impacts of climate change.
- DRE advantages for women: DRE-powered technologies provide an additional advantage to women farmers and microentrepreneurs by enhancing income opportunities through mechanization. They also free women from several gender-assigned manual activities that are laborious.
Steps to scale up this impact
- Leverage the experience of early women adopters: The technology providers must leverage early users to share their experiences with potential customers, becoming demo champions/sales agents to market these products, based on their first-hand product experience and local credibility.
- For example: Kissan Dharmbir, an energy-efficient food processor manufacturer, engaged Neetu Tandan, an Agra-based micro-entrepreneur using the processor to produce fruit squashes and jams, as a demo champion. Her demonstrations are generating sales leads.
- Organise hyperlocal events and demos: These events also create spaces for women to network, become aware of the product and connect with people who can help them procure, finance and use these machines.
- For example: At an event in Hamirpur, Uttar Pradesh, more than 200 women booked seven appliances on the spot, including solar sewing machines and multi-purpose food processors.
- Enable easy finance to purchase products: Limited avenues to avail financing for these clean technology products remain a bottleneck. Financiers supporting women farmers and microentrepreneurs should consider the technologies themselves as collaterals while easing the loan application process.
- For example: Samunnati Finance, a financier in the agri-value chain, availed an 80% first-loan default guarantee to support six women-led FPOs in Andhra Pradesh that purchased 100-kg solar dryers.
- Support backwards and forward market linkages: Only technology provision is not enough in all cases. Many rural products have larger market potential. Thus, finding and connecting producers to consumption hubs in urban areas are equally important to generate higher incomes.
- Ensure adequate after-sales services buy backs: Technology manufacturers and promoters should also ensure adequate after-sales services and buy-backs. To build financiers’ confidence, evidence on the economic viability of these technologies should be shared and promoters must offer partial default guarantees.
- Enable policy convergence: No private sector entity has the kind of reach and scale government institutions have, so leveraging their reach is imperative to exponentially scale up. Multiple Ministries are working towards promoting livelihoods for women from State rural livelihood missions, horticulture and agriculture departments, Ministry of Micro, Small and Medium Enterprises, to the Ministry of Textiles. They should embrace clean energy solutions to further their respective programmes and outcomes.
- Perception of high risk: The high starting price and newness of DRE appliances can create a perception of high risk, particularly for women users who may have a lower risk appetite due to socio-economic factors.
- Low belief: Due to historical limitations on women’s access to new information, people tend to want to physically touch and see high-tech, high-priced DRE products before believing in their ability and promised benefits.
- Limited network: Women often struggle with established market linkages because of their limited mobility and networks outside their villages.
Conclusion
- Much like it takes a village to raise a child, scaling the impact of clean energy solutions on women’s livelihoods needs a village of policymakers, investors, financiers, technology promoters and other ecosystem enablers. Only then can we truly unlock the potential of rural women and clean technologies simultaneously.
Mains question
Q. What do you understand by Distributed Renewable Energy (DRE)? What is to be done scale up this impact from thousands of women to millions of them?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tertiary Sector, PMI
Mains level: India's services economy
The Purchasing Managers Index (PMI) for the services sector in India rose to 55.3 in February. This marks the highest level of the PMI in the services sector in 12 years, driven by an increase in new business orders and employment.
Service Sector
The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.
Some examples of activities that fall under the service sector include:
- Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
- Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
- Financial services: This includes banks, insurance companies, and investment firms.
- Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
- Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
- Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
- Education and training: This includes activities such as schools, colleges, universities, and vocational training.
- Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.
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Purchasing Managers’ Index
- PMI is an indicator of business activity — both in the manufacturing and services sectors.
- The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
- It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
How is the PMI derived?
- The PMI is derived from a series of qualitative questions.
- Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.
How does one read the PMI?
- A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
- Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
- If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.
Recent trends in Services PMI
- For the 19th straight month, the headline figure was above the neutral 50 mark, denoting expansion.
- There was substantial moderation in cost pressures as input prices increased at the slowest pace in almost two-and-a-half years and output charge inflation softened to a 12-month low.
- Still, capacity pressures remained mild and jobs rose only marginally.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Bank Index on the Life Cycle of Working Women
Mains level: Women in workforce
Central idea: The article reports on India’s score in the World Bank Index on the life cycle of working women.
World Bank Index on the Life Cycle of Working Women
- It is a tool developed by the World Bank to measure and track the progress of women’s economic participation and opportunities over their lifetimes.
- It is based on a set of indicators that measure factors such as laws and regulations affecting women’s employment, access to finance, and gender-based violence and harassment in the workplace.
The index is divided into three categories:
- Starting a job,
- During employment, and
- After employment.
- Each category includes a set of indicators that measure the specific challenges and opportunities faced by women at different stages of their careers.
- The purpose of the index is to provide policymakers and stakeholders with data and insights that can be used to inform policies and programs aimed at improving women’s economic opportunities and outcomes.
- The index is updated periodically to track progress over time and identify areas where more action is needed.
India’s performance
- India has scored 74.4 out of 100 in the World Bank Index on the life cycle of working women, which measures factors like laws, regulations, and practices affecting women’s economic participation.
- This score places India at 140th out of 190 countries surveyed in the index.
Issues highlighted
- India has made progress in certain areas, such as maternity benefits and anti-discrimination laws.
- There are still significant gaps in areas like equal pay and access to finance.
- The report also highlights the impact of the COVID-19 pandemic on women’s economic participation, with many women facing job losses and reduced hours of work.
Key recommendations
- The report concludes by recommending actions that can be taken to improve women’s economic participation, such as-
- Increasing access to childcare
- Promoting flexible work arrangements and
- Addressing gender-based violence and harassment in the workplace
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pyramids of Giza, Cosmic-Ray Muon Radiography
Mains level: Not Much
A hidden corridor has been unearthed by scientists inside the Great Pyramid of Giza using a non-invasive technique called cosmic-ray muon radiography.
What is Cosmic-Ray Muon Radiography (CMR)?
- CMR is a technique used to study the density and composition of materials hidden within large and dense objects, such as geological formations, archaeological sites, and industrial facilities.
- The technique involves using muons, a type of cosmic-ray particle, to generate images of the interior of such objects.
- Muon particles are created when cosmic rays, mostly protons and atomic nuclei, collide with atoms in the Earth’s upper atmosphere.
- These muons travel through the atmosphere and penetrate deep into the ground, passing through objects along their path.
- Muons are highly penetrating particles that can penetrate several meters of rock or other materials, making them ideal for imaging the internal structure of objects.
Working principle
- The principle behind CMR is to measure the flux of muons passing through an object and compare it to the expected flux based on the object’s geometry and composition.
- Differences in the measured and expected flux indicate variations in the object’s density or composition, which can be used to create an image of the object’s internal structure.
Applications
Some key applications of cosmic-ray muon radiography include:
- Volcano monitoring: By using muon radiography to create images of the interior of volcanoes, scientists can better understand their structure and potential eruption hazards.
- Archaeology: Muon radiography can be used to explore the interior of pyramids and other ancient structures without damaging them.
- Nuclear reactor monitoring: Muon radiography can be used to detect the presence of nuclear materials within reactors and to monitor their condition over time.
Great Pyramid of Giza
- The Great Pyramid is the largest of the three pyramids in Giza, originally standing roughly 147 m above the Giza plateau.
- Construction was started in 2550 BC, during the reign of Khufu, often considered the greatest pharaoh of Egypt’s old kingdom.
- It is estimated that the pyramid was built using 2.5 million stone blocks, each weighing between 2.5 and 15 tonnes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Yellowstone NP
Mains level: Not Much
Yellowstone National Park, which celebrated its 151st anniversary earlier this week, is widely considered to be the first national park in the world.
Yellowstone National Park
- It is a large protected area located primarily in the U.S. state of Wyoming, although it also extends into Montana and Idaho.
- It was established in 1872 and is widely considered to be the first national park in the world.
- It spans an area of over 9,000 sq. km comprising lakes, canyons, rivers, iconic geothermal features such as the Old Faithful geyser, and mountain ranges.
Some key features and attractions of Yellowstone National Park include:
- Geothermal features: Yellowstone is famous for its geothermal features, including geysers, hot springs, mud pots, and steam vents. The most famous of these is Old Faithful, a geyser that erupts on a regular schedule.
- Wildlife: Yellowstone is home to a diverse array of wildlife, including grizzly bears, wolves, bison, elk, and moose. Visitors can see these animals in their natural habitats throughout the park.
- Scenic drives: The park has several scenic drives, including the Grand Loop Road, which takes visitors to many of the park’s major attractions.
- Fishing: The park has many rivers and lakes that offer excellent fishing opportunities, including the Yellowstone River.
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