Note4Students
From UPSC perspective, the following things are important :
Mains level: India’s interest in West Africa;
Why in the News?
Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.
What are the strategic objectives of India in West Africa?
- Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
- Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
- Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
- Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.
How does India plan to enhance its economic ties with West African countries?
- Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
- Sectoral Collaboration: The focus areas for economic collaboration include defence, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
- Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
- Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.
What challenges does India face in its engagement with West Africa?
- Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
- Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
- Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
- Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.
Way forward:
- Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
- Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.
Mains PYQ:
Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact of PLI Scheme;
Why in the News?
Six out of the 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and speciality steel, are progressing at a relatively slower pace.
What are the primary reasons for the slow implementation of PLI schemes?
- Stringent Eligibility Norms: Many industries have reported that the eligibility criteria for participation in PLI schemes are too stringent, which limits the number of companies that can benefit from the incentives.
- Initial Setup Challenges: Establishing a domestic manufacturing base from scratch is a monumental task. Industries such as solar modules and advanced chemistry cells (ACC) require substantial time—ranging from one-and-a-half to three years—to set up manufacturing operations, delaying employment generation.
- Access to Resources: Companies face difficulties in accessing critical resources, including Chinese machinery and skilled technicians, which can hinder their ability to ramp up production quickly.
- Market Dependency: Some sectors remain heavily reliant on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.
- Slow Disbursement of Funds: The initial years of the scheme saw minimal disbursement of funds, with only a small percentage of the total incentive outlay being paid out in the first two years.
Which sectors are experiencing the most significant slowdowns, and why?
- Textiles: This sector is struggling due to high competition and stringent norms that have slowed down participation and growth.
- Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress.
- As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but the solar cell capacity was only 7.6 GW, leading to supply shortages that delayed projects.
- Automobiles: While some companies are making progress, the automobile sector overall is hindered by initial setup challenges and fluctuating market conditions.
- Factors such as rising raw material costs and shifts in consumer preferences towards electric vehicles are creating a complex environment for traditional automakers.
- Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Because of the lengthy development timelines for manufacturing facilities and the need for substantial investment in technology are contributing to slower growth in this strategic area.
- IT Hardware: Although recently upgraded with increased funding, it still lags behind in implementation compared to more successful sectors like mobile manufacturing.
What measures can be taken to enhance the effectiveness of PLI schemes? (Way forward)
- Revising Eligibility Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from incentives.
- Increasing Support for Supply Chains: Establishing robust supply chains is crucial. The government could provide additional support to smaller suppliers who are essential for scaling up production across sectors.
- Streamlining Resource Access: Facilitating easier access to necessary machinery and skilled labor can help companies ramp up production more effectively and reduce dependency on imports.
- Regular Reviews and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
- Encouraging Ancillary Industries: Promoting the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Cooperative Policy
Why in the News?
- The Union Minister of Cooperation has provided crucial information regarding India’s National Cooperative Policy to the Lok Sabha.
- The new National Cooperative Policy is almost ready and will be announced in 2-3 months.
Update regarding the New National Cooperative Policy:
|
Details |
| National Level Committee Formation |
• A 48-member National Level Committee was formed under the chairmanship of Shri Suresh Prabhakar Prabhu.
• The committee includes experts from the cooperative sector, representatives from National, State, District, and Primary level cooperative societies, and officers from Central Ministries/Departments.
• The task of the committee was to formulate the New National Cooperation Policy for the development of the cooperative sector in India.
• 17 meetings and 4 regional workshops were conducted across the country to finalize the draft report of the policy. |
| Aims and Objectives |
• Revitalize the cooperative sector and enhance its efficiency at national, state, district, and primary levels.
• Strengthen the cooperative movement in India by creating a structured policy that fosters growth and sustainability.
• Establish financial viability and governance mechanisms for cooperatives.
• Ensure cooperative federalism by allowing state cooperatives to function autonomously, avoiding undue centralization. |
| Features of the Policy |
• The policy adopts an inclusive approach, including all levels of cooperatives from district to primary.
• Close collaboration with State Governments to promote the cooperative sector and implement cooperative federalism.
• The draft policy was developed after extensive consultations, ensuring broad public and expert participation. |
| Provisions under the Policy |
• Strengthening Cooperative Structure: Set up District Central Cooperative Banks (DCCBs) and district milk producers’ unions in all uncovered districts. NABARD will prepare an action plan for this.
• Expansion of Multipurpose PACS: New multipurpose PACS, primary dairy/fishery cooperative societies will be established in uncovered Panchayats/villages across India within the next five years. |
PYQ:
[2011] In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kumbh Mela
Why in the News?
The 2025 Maha Kumbh Mela will take place in Prayagraj from January 13 to February 26.
![[pib] Maha Kumbh Mela, 2025](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2024/12/123440263_830927117657028_1327487884602532791_n.jpg)
About Kumbh Mela
| Details |
A major pilgrimage and festival in Hinduism, occurring four times in twelve years at different locations in India. It attracts millions of pilgrims for spiritual purification.
Types of Kumbh Mela:
-
- Kumbh Mela: Regular festival, celebrated every 12 years at one of the four locations.
- Maha Kumbh Mela: The largest, celebrated once every 12 years at Prayagraj (confluence of Ganges, Yamuna, and Sarasvati).
- Ardh Kumbh Mela: Held every 6 years in Prayagraj (half of the full Kumbh Mela).
- Purna Kumbh Mela: Held when a complete 12-year cycle is completed.
Locations: Kumbh Mela rotates between four cities:
-
- Haridwar (on the banks of the Ganges),
- Prayagraj (confluence of the Ganges, Yamuna, and the mythical Sarasvati river),
- Ujjain (on the banks of the Shipra River),
- Nashik (on the banks of the Godavari River).
Key Rituals:
- Shahi Snan (Royal Bath) – A ritual where pilgrims in Akharas (processions) bathe in the holy river.
- Worship and Prayers – Pilgrims offer prayers along riverbanks, attend spiritual discourses, and perform fire rituals.
- Religious Processions – Several religious processions involving saints, gurus, and devotees take place.
- Community Prayers and Spiritual Discourses – Saints and religious leaders conduct spiritual teachings for the devotees.
|
| Significance and Features |
- Spiritual Significance: Considered a sacred event for Hindus, aimed at spiritual cleansing, salvation, and liberation from the cycle of rebirth (Moksha).
- Cultural Unity: It is a remarkable event showcasing India’s unity and diversity, where millions of people from across the world come together.
- Mass Gathering: It holds the Guinness World Record for the largest peaceful gathering, with millions of pilgrims attending the event. In 2019, Kumbh Mela witnessed the largest peaceful public gathering ever recorded, with around 120 million people.
- Pilgrimage Tourism – The Kumbh Mela also significantly boosts local tourism, with a major influx of national and international pilgrims, contributing to local and national economies.
UNESCO Recognition – Kumbh Mela was recognized as an Intangible Cultural Heritage of Humanity by UNESCO in 2017. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cash Reserve Ratio (CRR)
Why in the News?
- The Reserve Bank of India (RBI) began its three-day monetary policy review.
- There is increasing speculation that the RBI may announce a cut in the Cash Reserve Ratio (CRR) to ease liquidity pressures.
What is Cash Reserve Ratio (CRR)?
- CRR is the percentage of a bank’s total deposits that it must maintain as liquid cash with the Reserve Bank of India (RBI) as a reserve.
- It is a tool used by the RBI to manage inflation and check excessive lending by banks.
- It serves as a safety net during times of banking stress, ensuring banks have enough liquidity for day-to-day operations.
- As of now, the CRR is set at 4.5% of a bank’s Net Demand and Time Liabilities (NDTL).
- Banks do not earn interest on the amount they maintain as CRR with the RBI.
- CRR Requirements for Different Types of Banks:
- Scheduled Commercial Banks (SCBs): Includes Public Sector Banks (PSBs), Private Sector Banks (PVBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Payments Banks, Primary (Urban) Co-operative Banks (UCBs), State Co-operative Banks (StCBs), and District Central Co-operative Banks (DCCBs).
- Non-Scheduled Co-operative Banks & Local Area Banks: They must maintain CRR with themselves or with the RBI.
- Restrictions on CRR Funds
- Banks cannot lend the funds held as CRR to corporates or individual borrowers.
- The money held under CRR cannot be used for investment purposes by the bank.
- No Interest is earned on the funds maintained as CRR by banks with the RBI.
What is Incremental CRR (I-CRR)?
- Introduced temporarily on August 10, 2023, to absorb surplus liquidity in the banking system.
- Banks were required to maintain 10% I-CRR on the increase in their NDTL between May 19, 2023, and July 28, 2023.
- The I-CRR was implemented from August 12, 2023, and applied during periods of excess liquidity in the financial system.
|
Impacts of Declining CRR on the Economy
-
- Increased Bank Liquidity: A reduction in CRR frees up more funds for banks, improving credit availability and promoting investment and consumption.
- Stimulus for Economic Growth: With more funds to lend, businesses can secure loans more easily, boosting economic activity and encouraging growth across sectors.
- Lower Interest Rates: As banks have more liquidity, they may lower interest rates on loans, making credit cheaper and encouraging investment and consumer spending.
-
- Potential Inflationary Risks: Increased lending and spending can raise demand, which, if not matched by supply, can lead to inflationary pressures in the economy.
- Asset Bubbles: Excess liquidity may result in overvalued assets like stocks or real estate, creating the risk of unsustainable price increases and potential market instability.
PYQ:
[2010] When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?
(a) The commercial banks will have less money to lend
(b) The Reserve Bank of India will have less money to lend
(c) The Union Government will have less money to lend
(d) The commercial banks will have more money to lend |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Microhyla nilphamariensis frog
Why in the News?
A study highlights that endemic frog species, like the Nilphamari narrow-mouthed frog (Microhyla nilphamariensis), face challenges due to habitat loss and land use changes in agroforestry habitats like orchards and paddy fields.
About the Nilphamari narrow-mouthed frog:
|
Details |
| About |
A species of narrow-mouthed frog, characterized by a small size, narrow triangular mouth, and reduced webbing between toes.
It has light brown dorsal coloration with a dark brown diamond-shaped marking.
(Not listed by either IUCN or CITES.) |
| Geographical Location |
Found in Bangladesh, India, Nepal, and northern Pakistan. |
| Habitat and Challenges |
Prefers moist environments like grassy fields near ephemeral pools.
Faces challenges due to habitat loss and land use changes, particularly in agroforestry areas like orchards and paddy fields. |
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