November 2024
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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Forging a future of Self-sufficiency and Economic Resilience 

Note4Students

From UPSC perspective, the following things are important :

Mains level: Inclusive Growth; Sustainable Development;

Why in the News?

Chhattisgarh, with its cultural richness and natural resources, is starting an industrial path with the 2024-29 policy.

  • This plan is part of “Amritkaal: Chhattisgarh Vision@2047” to grow self-sufficient.

CASE STUDY: “Amritkaal: Chhattisgarh Vision@2047

  • This policy introduces special provisions for marginalized groups, including surrendered Naxals, women, and the third-gender community. This inclusivity aims to empower these groups socio-economically.
  • Specific packages are designed to support entrepreneurship among these communities through training and financial assistance, facilitating their integration into mainstream society.
  • The ‘Amritkaal’ policy classifies development areas into three groups based on their industrialization levels, ensuring that incentives are targeted towards backward areas to promote balanced growth across the state.
    • Focus on Sustainable Industries: There is a strong emphasis on promoting pollution-free industries, particularly in electric vehicle manufacturing and environmentally friendly products, ensuring sustainable growth.
    • Support for Start-ups: A dedicated fund of ₹50 crore has been allocated to support start-ups, encouraging innovation and entrepreneurship throughout the state.

What strategies can be implemented to enhance economic resilience in communities?

  • For Targeted Training Programs: Implementing skill development initiatives tailored for marginalized groups can help them acquire the necessary skills for self-employment and entrepreneurship.
  • For Financial Assistance and Subsidies: Providing subsidized loans and financial incentives can lower barriers for starting new businesses, especially for women and the third-gender community.
  • For Establishment of Industrial Corridors: Developing industrial corridors can enhance connectivity and create a conducive environment for industries to thrive, leading to job creation and economic diversification.

How does self-sufficiency contribute to overall economic stability?

  • Reduced Dependency: Self-sufficiency allows communities to rely less on external resources, making them more resilient to economic shocks and fluctuations in global markets.
  • Local Job Creation: By fostering local industries and entrepreneurship, self-sufficiency contributes to job creation within communities, enhancing overall economic stability.
  • Sustainable Growth: Emphasizing sustainable practices ensures that economic growth does not come at the expense of environmental degradation, promoting long-term stability.

What role do various stakeholders play in fostering economic resilience?

  • Government: The government plays a crucial role by formulating policies that provide incentives and support for industrial development. It also facilitates training programs and infrastructure development.
  • Local Businesses and Entrepreneurs: Local businesses contribute by creating jobs and stimulating the economy. Entrepreneurs drive innovation and respond effectively to local market needs.
  • Community Organizations: NGOs and community organizations can assist in identifying the needs of marginalized groups and facilitate access to resources such as training and financial assistance.

Way forward: 

  • Integrated Community Development Programs: Establish comprehensive programs that unite training, financial assistance, and mentorship specifically for marginalized groups.
  • Public-Private Partnerships for Infrastructure Development: Encourage collaboration between the government and private sector to develop industrial corridors and infrastructure that facilitate economic activities.

Mains PYQ:

Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

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Rural Distress, Farmer Suicides, Drought Measures

Explained: The paradox of stagnant rural wages

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to Rural Governance;

Why in the News?

From 2019-20 to 2023-24, India’s economy grew at 4.6% annually, with the farm sector at 4.2%, yet rural wages remain stagnant.

Disparity between Rural Wages and Economic Growth:

  • Divergent Growth Trends: While the Indian economy has experienced significant GDP growth (averaging 4.6% annually from 2019-20 to 2023-24), rural wages have stagnated, with real agricultural wages showing minimal growth and often negative real wage growth due to rising inflation.
  • Labor Supply Dynamics: The surge in female Labor Force Participation Rates (LFPR) in rural areas has increased the overall labor supply, exerting downward pressure on wages as more workers compete for the same or fewer jobs, primarily in low-productivity agricultural sectors.
  • Capital-Intensive Growth: Economic growth has become increasingly capital-intensive and labor-saving, leading to a disproportionate share of income going to capital rather than labour.
    • This trend results in fewer job opportunities in high-paying sectors, further exacerbating the stagnation of rural wages.

What are the major factors behind the Stagnant Rural Wages?

  • Increased Female Labour Force Participation (Surplus of Labour): The rural female Labour Force Participation Rate (LFPR) has seen a sharp rise, particularly due to government initiatives that have freed up women’s time for outside employment.
    • However, this has led to a significant increase in the overall rural workforce, causing a surplus of labor that exerts downward pressure on wages.
  • Majority of choosing Agricultural Employment: Although more women are entering the labour force, the majority are finding employment in agriculture rather than in higher-paying non-farm sectors.
    • This results in a surplus of workers in an already low-productivity sector, which suppresses wages further.
  • Capital-Intensive Economic Growth: The Indian economy’s growth has increasingly come from capital-intensive sectors that require fewer workers.
    • Consequently, the share of income generated is shifting from labour (wages) to capital (profits). This trend limits demand for rural labour, leading to wage stagnation.
  • Low Demand for Non-Agricultural Labor: Wage growth in rural non-agricultural sectors has been even weaker, with real wages declining. This reflects limited job opportunities outside of agriculture, partly due to low demand for labour in industries that are more capital-intensive.

What are the steps taken by Govt to address the issue of Low Rural Wages?

  • Income Transfer Schemes: Both central and state governments have introduced various income transfer schemes, like Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) which provides an annual income support of Rs 6,000 to farmer households in rural areas.
    • Many states have launched income-support schemes specifically for women, such as Maharashtra’s Ladki Bahin Yojana, which provides Rs 1,500 per month to women from low-income households.
  • Employment Generation Programs: Schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provide a safety net by guaranteeing 100 days of wage employment for rural households.
    • The government has also promoted rural entrepreneurship through initiatives like the Mudra Yojana, which offers micro-loans to rural businesses and enhance employment opportunities.
  • Skill Development Initiatives: The government has been investing in rural skill development programs to promote employability in non-farm sectors.
    • Programs under schemes like the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) focus on upskilling rural youth and women to enable them to find better-paying, non-agricultural employment.
  • Rural Infrastructure Development: Initiatives to build rural infrastructure, such as the Pradhan Mantri Gram Sadak Yojana (PMGSY), create temporary employment in construction and improve access to jobs, markets, and services.

Way forward: 

  • Diversification of Employment Opportunities: Enhancing support for non-agricultural sectors through targeted investments in skill development, vocational training, and entrepreneurship programs can create diverse job opportunities.
  • Strengthening Agricultural Productivity: Implementing policies that focus on modernizing agricultural practices and improving productivity can increase the income of rural labourers.

Mains PYQ:

Q  Though there have been several different estimates of poverty in India, all indicate reduction in poverty over time. Do you agree. Critically examine with reference to urban and rural poverty indicators. (2015)

Q Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth? (2024)

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Railway Reforms

What Australian varsity study says about impact of India’s Dedicated Freight Corridors

Note4Students

From UPSC perspective, the following things are important :

Mains level: Significance of Infrastructure; Infrastructural development;

Why in the News?

Dedicated Freight Corridors are boosting India’s GDP and significantly enhancing Indian Railways’ revenue, according to a recent study by Australia’s University of New South Wales.

What are dedicated freight corridors (DFCs)?

Dedicated Freight Corridors (DFCs) are specialized railway tracks for freight transportation, designed to improve efficiency with faster, high-capacity trains like double-stack containers and heavy-haul freight trains.

What is the Present Status?

  • India has two main DFCs:
    • Eastern DFC (EDFC): Spanning 1,337 km from Sonnagar (Bihar) to Sahnewal (Punjab). The EDFC is operational and includes feeder routes connecting coal mines and thermal plants.
    • Western DFC (WDFC): Extends 1,506 km from Jawaharlal Nehru Port (Mumbai) to Dadri (Uttar Pradesh). The WDFC is 93% complete, serving major ports in Gujarat. Full completion is expected by December 2025.
  • As of March 31, 2024, the project has incurred costs of ₹94,091 crore, excluding land acquisition.

What does the Australian varsity study say?

  • Conducted by the University of New South Wales, this study used a Computable General Equilibrium model to assess the WDFC’s impact, specifically from FY 2019–20.
  • The study’s findings include:
    • Reduced freight costs and travel times have decreased commodity prices by up to 0.5%.
    • The DFCs contributed to a 2.94% increase in Indian Railways’ revenue between FY 2022–23 and FY 2018–19.
    • Western regions gained significantly from reduced freight costs, which had a “social-equalizing effect,” benefiting states with lower per capita GDP.
  • Published in Elsevier, the study integrated freight costs, industry inputs, population data, and rail and road data.

What economic benefits do Dedicated Freight Corridors (DFCs) bring to India?

  • Improved Supply Chains: DFCs provide faster, efficient transit for freight, enhancing the supply chain for industries and logistics providers.
  • Cost Savings: Reduction in freight transport costs lowers overall logistics expenses, which can lead to price reductions for consumers.
  • Revenue Growth for Railways: DFCs have directly contributed to revenue increases, supporting the Railways’ finances.
  • Increased Freight Share: The corridors are key to meeting the National Rail Plan’s target of achieving a 45% rail share in freight by 2030.
  • Exports and Imports: Faster, dedicated freight routes boost export-import activities, as DFCs support port connectivity, particularly in the West.

How do DFCs enhance the overall logistics and transportation infrastructure in India?

  • Decongested Rail Network: By shifting freight traffic off the main passenger routes (e.g., the Golden Quadrilateral), DFCs alleviate congestion, improving both freight and passenger rail reliability.
  • Regional Development: States along the DFC routes experience increased industrial activity due to improved logistics support, which can enhance local economies and job creation.
  • Future Corridors: Plans are underway for four additional corridors (East Coast, East-West I & II, North-South) to further expand the freight network, enhancing connectivity across the country.

Current Operational Status and Future Outlook

  • As of now, 325 trains run daily on the DFCs, which is a 60% increase from the previous year.
  • DFC trains are faster, safer, and capable of carrying heavier loads, contributing to over 10% of Indian Railways’ total freight operations.
  • DFCCIL is conducting further research on DFCs’ economic impact, with results expected soon, which will provide deeper insights into their long-term contributions to India’s economic growth.

Challenges related to the development of DFC: 

  • Land Acquisition Delays: Acquiring over 8,800 hectares, often privately owned and developed land, has caused setbacks, with disputes and legal cases prolonging the process.
  • Escalating Costs: Project costs have surged significantly, with Japan International Cooperation Agency (JBIC) noting that expenses have nearly doubled, raising concerns about financial viability and potential investor reluctance.
  • Technology Disputes: Differences over locomotive technology—diesel versus electric—pose delays, as stakeholders like Indian Railways and JBIC debate environmentally friendly solutions.
  • Utility and Infrastructure Challenges: Shifting utilities (power lines, water pipes) and constructing road overbridges and under-bridges add logistical complexities.
  • Funding and Financial Management: Reliance on external funding and the need for efficient resource management impact project timelines and execution stability.

Way Forward: 

  • Streamlined Land Acquisition and Cost Management: Need to implement a centralized framework for faster land acquisition and cost oversight to mitigate delays and prevent cost escalations, ensuring project feasibility and investor confidence.
  • Technological and Funding Consensus: Need to establish clear technology standards (e.g., electric locomotives) for environmental benefits and secure diversified funding sources to reduce dependence on external financing, enabling timely completion and sustainable operations.

Mains PYQ:

Q “Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. (UPSC IAS/2021)

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Gravitational Wave Observations

First ‘Black Hole Triple’ System Discovered

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Black Hole Triple and its formation

Scientists have discovered a “black hole triple” in space, marking the first time such a system has been identified.

Why in the News?

Scientists have discovered a “black hole triple” in space, marking the first time such a system has been identified.

Black Hole Triple: What does it mean?

  • Many black holes are found in binary systems with another star or black hole.
  • This triple system includes two stars orbiting a black hole:
    • The nearer star orbits the black hole every 6.5 days.
    • The distant star orbits approximately every 70,000 years.
  • The system, located in the constellation Cygnus, features V404 Cygni, one of the oldest black holes known, which is nine times larger than the Sun.
  • It is 8,000 light years away from Earth.

What is a Black Hole?

  • A black hole is a space region with such strong gravity that no light or matter can escape.
  • Most black holes form from supernova explosions—the death of massive stars.
  • This triple system suggests an alternative, less violent formation process.

How was it discovered?

  • Researchers from Caltech and MIT discovered the system while reviewing astronomical data from telescopes.
  • They described the stars as being gravitationally bound, indicating they form a triple system.
  • It is believed that  V404 Cygni did not form through a supernova explosion, which typically ejects outer stars.
  • Instead, it likely formed through direct collapse: the star collapsed inward without exploding.
  • Known as a “failed supernova”, this process causes an implosion without expelling matter, leading to a gentler black hole formation.

Future of the Triple System

  • The triple system may not remain as such, as V404 Cygni is consuming the nearby star.
  • This discovery suggests that some existing binary systems may have originally been triple systems, where the black hole later consumed one of its members.

PYQ:

[2019] Recently, scientists observed the merger of giant ‘blackholes’ billions of light-years away from the Earth. What is the significance of this observation?

(a) ‘Higgs boson particles’ were detected.
(b) ‘Gravitational waves’ were detected.
(c) Possibility of inter-galactic space travel through ‘wormhole’ was confirmed.
(d) It enabled the scientists to understand ‘singularity’

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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Namo Drone Didi Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Namo Drone Didi Scheme and its features

Why in the News?

The Govt. has released the Operational Guidelines for the Namo Drone Didi Scheme.

About Namo Drone Didi Scheme:

Details
About
  • Central Sector Scheme for the period of 2024 to 2026.
  • To provide drones to 14,500 Women Self Help Groups (SHGs) for rental agricultural services (applying liquid fertilizers and pesticides)
Total Funding Rs. 1,261 crore allocated by the Ministry of Agriculture and Farmers Welfare.
Financial Assistance
  • 80% of the cost (up to ₹8 lakh per drone), with remaining 20% to be financed through loans.
  • Loans available under National Agriculture Infra Financing Facility (AIF) with 3% interest subvention; SHGs can also access loans from other Rural Development programs
Training  
  • 15 days mandatory training for drone pilots.
  • Additional training for drone assistants in repairs and maintenance.
Training Providers Remote Pilot Training Organizations (RPTOs) approved by the Directorate General of Civil Aviation (DGCA).
Implementing Agency
  • Lead Fertilizer Companies (LFCs) responsible for coordinating with State Departments, drone manufacturers, and SHGs.
  • They will procure drones through a transparent process, with ownership placed with the Cluster Level Federations (CLFs) of SHGs or the SHGs themselves.
Operational Limits Drones must operate within visual line of sight (vLOS) and below 400 feet (120 meters) AGL.
Expected Outcomes
  • Each SHG is expected to cover approximately 2,000-2,500 acres annually;
  • IT-based Management Information System (MIS) – Drone Portal for tracking drone usage, fund disbursement, and monitoring service delivery

 

PYQ:

[2020] Consider the following activities:

  1. Spraying pesticides on a crop field.
  2. Inspecting the craters of active volcanoes.
  3. Collecting breath samples from spouting whales for DNA analysis.

At the present level of technology, which of the above activities can be successfully carried out by using drones?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

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Railway Reforms

Kalka-Shimla Heritage Railway Track

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Kalka-Shimla Heritage Railway

Why in the News?

  • Himachal Pradesh CM has requested the Centre to consider running the Kalka-Shimla narrow-gauge railway—a UNESCO World Heritage Site—on green hydrogen to promote clean energy.
    • The CM emphasized that this initiative aligns with Himachal Pradesh’s goal of becoming a ‘green energy state’ by March 31, 2026.

About the Kalka-Shimla Railway

  • The Kalka-Shimla Railway is a narrow-gauge railway with a width of 2 ft 6 in (762 mm).
  • It was constructed in 1898 to link Shimla with the broader Indian rail system under the guidance of chief engineer H. S. Harington.
  • The total length of the railway is approximately 96.6 km.
  • This engineering marvel features 107 tunnels, of which 102 are still in use, along with 864 bridges along its route.
  • The railway has a ruling gradient of 1 in 33 (about 3%), making it quite a steep climb in places, and it includes 919 curves, with the sharpest curve being at 48 degrees.
  • The elevation of the railway starts at 656 meters (2,152 feet) in Kalka and rises to 2,076 meters (6,811 feet) in Shimla, resulting in a height difference of 1,420 meters (4,660 feet).
  • Diesel locomotives began operation on the railway in 1955, followed by diesel-hydraulic models introduced in 1970.
  • On 8 July 2008, it was designated as a UNESCO World Heritage Site as part of the Mountain Railways of India.

Note:

  • Three of the lines, the Darjeeling Himalayan Railway, the Nilgiri Mountain Railway, and the Kalka–Shimla Railway, are collectively designated as a UNESCO World Heritage Site under the name “Mountain Railways of India”.
  • Two more, the Matheran Hill Railway and the Kangra Valley Railway, are on the tentative list of UNESCO World Heritage Sites.
  • The Nilgiri Mountain Railway is also the only rack and pinion railway in India.

 

PYQ:

[2015] With reference to bio-toilets used by the Indian Railways, consider the following statements:

1. The decomposition of human waste in the bio toilets is initiated by a fungal inoculum.

2. Ammonia and water vapour are the only end products in this decomposition which are released into the atmosphere.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Tribes in News

Manipur’s non-Naga Thadou community lends support to NRC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Thadou Tribe

Why in the News?

The Thadou tribe, one of the oldest and largest non-Naga tribes in Manipur, has expressed support to implement the National Register of Citizens (NRC) in the state.

About the Thadou Community

Details
Overview
  • One of the oldest indigenous tribes in Manipur, recognized as a distinct community.
  • One of 29 officially recognized indigenous tribes in Manipur with rich cultural practices and folklore.
Historical Background Recognized as the largest tribe in Manipur since the First Census of India (1881), with a distinct historical narrative from Kukis.
ST Recognition Acknowledged as an independent Scheduled Tribe under the 1956 Presidential Order.
Population  As per the 2011 Census, the Thadou population stands at 2,15,913;
Identity Asserts a distinct identity from the Kuki community, emphasizing unique language, culture, and history.
Language Belongs to the Tibeto-Burman family, with a distinct dialect from other nearby tribes.
Geographic Distribution Primarily located in Manipur; also present in Nagaland, Assam and Mizoram, inhabiting hilly regions.
Socioeconomic Status Engaged in agriculture (particularly jhum cultivation) and knowledgeable about medicinal plants; faces challenges in infrastructure and education.
Religious Practices Traditionally practiced animism; many have converted to Christianity, blending traditional and Christian customs.
Position Amid Ethnic Conflict Affected by the ethnic conflict between Meitei and Kuki-Zo communities since May 3, 2023; asserts their distinct identity.

 

PYQ:

[2013] Consider the following pairs :

Tribe: State

1. Limboo Limbu : Sikkim

2. Karbi : Himachal

3. Dongaria Kondh : Odisha

4. Bonda : Tamil Nadu

Which of the above pairs are correctly matched?

(a) 1 and 3 only

(b) 2 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

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