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  • There is no substitute for an industrial policy

    Make In India Registration

    Central idea 

    Make in India (MII) represents a departure from India’s historical self-sufficiency approach, prioritizing global competitiveness. The article critiques potential protectionist tendencies within MII, emphasizing the need for job creation and competitiveness. The efficacy of MII in delivering on promises, particularly in labor-intensive sectors, is a key focus for evaluating its impact.

    Key Highlights:

    • Make in India (MII) diverges significantly from India’s historical self-sufficiency approach, focusing on global competitiveness rather than isolation.
    • The article critiques potential protectionist tendencies within MII, drawing attention to historical pitfalls of reckless protection in the 1970s and 1980s.
    • The piece discusses the critical need for MII to deliver on promises, particularly in creating a competitive manufacturing sector, and emphasizes the importance of job creation for India’s abundant labor force.

    Key Challenges:

    • Concerns are raised about the implementation of MII, especially in sectors where tariff duties are increased for protection, potentially leading to negative consequences.
    • The article questions the efficacy of MII in comparison to its objectives, urging a closer examination of its impact on job creation and competitiveness.

    Key Terms:

    • Make in India (MII): A policy initiative launched in 2014 to transform India into a global manufacturing and design hub.
    • License Raj: A regulatory system in India during the pre-1991 era that required businesses to obtain licenses for various activities, leading to bureaucracy and inefficiency.
    • Production-Linked Incentive (PLI): A scheme aimed at attracting investments in key sectors and cutting-edge technology to enhance efficiency in the manufacturing sector.

    Key Phrases:

    • “MII is very different from self-sufficiency, and we should move on from this baseless comparison.”
    • “Every country that has ‘taken off’ before us has been export competitive.”
    • “Devising an industrial policy for mass job creation in India is the touchstone against which success ought to be gauged.”

    Key Quotes:

    • “Job creation for our abundant factor, especially women, is key, and that is only possible with labor-intensive manufacturing.”
    • “In the absence of high frequency data on PLI, either on value added or jobs generated, a moral compass to shape a better world ought to be employed in abundant measure.”

    Critical Analysis:

    • The article critically examines the potential protectionist aspects of MII, drawing parallels with historical challenges.
    • It highlights the importance of job creation, especially in labor-intensive sectors, as a crucial metric for evaluating the success of MII.
    • The absence of high-frequency data on PLI is emphasized, calling for a balance between data interpretation and moral considerations in policymaking.

    Way Forward:

    • The article suggests that industrial policies, including the National Industrial Policy (NIP), should prioritize labor-intensive sectors to promote mass job creation.
    • It emphasizes the need for MII to continue focusing on excelling in labor-intensive manufacturing for the overall betterment of India’s economic landscape.

  • Japan’s Smart Lander for Investigating Moon (SLIM) Mission

    slim

    Central Idea

    • Japan’s Smart Lander for Investigating Moon (SLIM) spacecraft successfully entered lunar orbit on December 25, ahead of its planned moon landing on January 19.
    • If successful, Japan will join an elite group of nations to achieve a soft lunar landing, following India’s Chandrayaan 3 mission in August.

    SLIM: An Overview

    • Launch and Design: Launched by JAXA on September 7, 2023, SLIM is a lightweight spacecraft, weighing only 590 kg, compared to Chandrayaan 3’s 3,900 kg.
    • Mission Objectives: SLIM aims to demonstrate precise lunar landing capabilities, targeting a landing within 100 meters of its chosen site near the Shioli Crater.

    Journey to the Moon

    • Fuel-Efficient Trajectory: Unlike Chandrayaan 3’s Hohmann transfer orbit, SLIM followed a longer, fuel-efficient path based on weak-stability boundary theory, taking four months to reach the moon.
    • Orbital Mechanics: SLIM utilized Earth’s gravity to build kinetic energy, eventually aligning its trajectory with the moon’s orbit for a slower approach and capture.

    SLIM’s Lunar Mission Goals

    • Precision Landing: SLIM’s attempt to land with minimal deviation from its target site sets a new standard for lunar missions.
    • Scientific Payload: The spacecraft will deploy two small rovers, LEV-1 and LEV-2, to study the lunar surface, temperature, radiation, and potentially the moon’s mantle.

    Impact on Chandrayaan 4

    • Lunar South Pole Exploration: Chandrayaan 4, a joint Indian-Japanese mission (LUPEX), aims to explore regions closer to the moon’s south pole, requiring precise landing technologies.
    • Technological Synergy: Technologies and insights from SLIM, particularly in navigation and feature-matching algorithms, will be crucial for the success of Chandrayaan 4.

    Challenges of Lunar South Pole Exploration

    • Rugged Terrain: The moon’s polar regions, characterized by rocky terrain, craters, and steep slopes, demand highly accurate landing capabilities.
    • Water-Ice Exploration: These regions contain water ice, making them prime targets for future lunar missions and resource utilization.

  • Youth Unemployment in India: A Persistent Challenge

    Central Idea

    • In 1932, M Visvesvaraya highlighted the issue of unemployment among educated individuals in India.
    • Ninety years later, the issue of youth unemployment remains a significant concern, despite official data indicating a decrease in the overall unemployment rate.

    Unemployment Trends: Data Analysis

    • Official Statistics: According to the Periodic Labour Force Survey (PLFS), the unemployment rate decreased from 6.1% in 2017-18 to 3.2% in 2022-23.
    • Disparities in Experience: Despite the overall reduction, young, highly educated workers face the highest unemployment rates, indicating a structural problem in the Indian economy.

    Educational Attainment and Unemployment

    • Higher Education and Unemployment: Individuals with higher education have consistently faced higher unemployment rates since the 1990s.
    • Trends Over Time: Unemployment rates for graduates have fluctuated, reaching 17% in 2017-18 and then dropping to 13% in 2022-23.

    Youth Unemployment

    • Young Graduates: The unemployment rate for young workers (aged 18 to 29) with graduate degrees has been notably high, with significant long-term unemployment spells.
    • Increasing Share of Graduates: The proportion of graduates in the labor force has risen from 5% in 1993-94 to around 15% in 2022-23, impacting overall unemployment rates.

    Challenges and Implications

    • Growing Concern: The increasing share of educated workers in the labor force, coupled with high unemployment rates among them, points to a deepening problem.
    • Need for Analysis: Understanding the causes of unemployment among the highly educated is crucial, whether it’s the education system’s failure to impart relevant skills or the economy’s inability to create sufficient jobs.

    Conclusion

    • Serious Issue: Youth unemployment in India is a critical issue that needs comprehensive analysis and action.
    • Harnessing Demographic Dividend: Effective measures are required to ensure that the aspirations of the youth are met and the potential of India’s demographic dividend is fully realized.
    • Policy Focus: Addressing youth unemployment requires targeted policies that focus on skill development, job creation, and aligning education with market needs.

  • RBI enhances Digital Payment Security with CoFT through Banks

    Central Idea

    • The Reserve Bank of India (RBI) has expanded the scope of card-on-file tokenisation (CoFT) services to include card-issuing banks and institutions, enhancing the security of digital payments.
    • Previously, tokenisation services were primarily provided through merchants. The RBI’s recent notification marks a significant shift in this approach.

    Understanding CoFT and Its Importance

    • Card-on-File (CoF) Concept: Traditionally, merchants stored customer card details (CoF) on their platforms, posing risks to financial data security.
    • Tokenisation Solution: To mitigate data breach risks, the RBI introduced tokenisation, where a unique token replaces actual card details at the merchant’s end.
    • Regulatory Measures: In March 2020, RBI mandated that payment aggregators and merchants should not store actual card data, aiming to minimize system vulnerabilities. The deadline for compliance was extended to December 2021 following industry requests.

    Implementation of CoFT by Card Issuers

    • Channels for Token Generation: Customers can generate CoFT tokens through mobile and internet banking, offering a convenient and secure method for digital transactions.
    • Consent and Authentication: Token generation requires explicit customer consent and Additional Factor of Authentication (AFA) validation, ensuring user control and security.
    • Flexibility for Cardholders: Cardholders have the flexibility to tokenise their cards at any time and select specific merchants for maintaining tokens.
    • Token Issuance: The tokens can be issued either by the card network, the issuer, or both, providing multiple layers of security.

    Impact and Adotion of CoFT

    • Enhancing Safety and Convenience: CoFT aims to secure card data without compromising the convenience of card transactions.
    • Implementation Timeline: The RBI introduced CoFT in 2021, with full rollout from October 1, 2022.
    • Usage Statistics: Since its implementation, over 56 crore tokens have been created, facilitating transactions worth over ₹5 lakh crore.

  • India-Oman to sign FTA in Jan 2024

    oman

    Central Idea

    • India and Oman are rapidly progressing in their negotiations for a Comprehensive Economic Partnership Agreement (CEPA), expected to be signed in January 2024.
    • The second round of talks was recently concluded in Muscat, indicating both countries’ eagerness to finalize the deal.

    India-Oman Trade Relations

    • Export Destination: Oman is India’s third-largest export destination in the Gulf Cooperation Council (GCC), making the FTA crucial for enhancing Indian exports.
    • Current Trade Dynamics: Over 80% of Indian goods currently enter Oman with an average import duty of 5%, and the FTA aims to reduce these barriers.

    Potential Benefits of the FTA

    • Boost in Exports: The agreement is expected to significantly increase Indian exports in various sectors, including gasoline, iron and steel, electronics, and machinery.
    • Key Export Sectors: Sectors like motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils, and motor cars are likely to benefit from duty elimination.

    Economic Context and Strategic Importance

    • Oman’s Economy: With a GDP of about USD 115 billion and a higher per capita income compared to India, Oman presents a market for diversified and higher-value Indian goods and services.
    • Bilateral Trade Growth: India-Oman bilateral trade reached USD 12.39 billion in 2022-23, with Indian exports and imports showing significant growth.
    • Oman’s Position: Oman’s strategic location in the Arabian Gulf region, with key ports along the Arabian Sea and the Gulf of Oman, is of utmost importance to India.
    • Historical Ties: The longstanding connection between Oman’s ruling family and India has fostered strong bilateral relations, with a significant Indian community contributing to these ties.

    India-Oman Strategic Partnership

    • Defense and Security: The partnership, strengthened by a MoU signed in 2005, includes joint exercises and cooperation in maritime security.
    • Trade and Commerce: Bilateral trade and joint ventures are key pillars of engagement, with significant Indian investment in Oman.

    Future Collaborations and Regional Stability

    • Space and Rare Earth Metals: Prospects for cooperation in space exploration and rare earth metals exploration are on the horizon.
    • Connectivity Projects: Oman could play a crucial role in India’s proposed connectivity corridors and infrastructure projects in West Asia.

    Conclusion

    • Shared Interests: The deepening India-Oman relationship, marked by shared interests and mutual respect, positions Oman as India’s gateway to West Asia.
    • Broader Engagement: As India seeks to expand its global outreach, particularly in West Asia, Oman’s strategic importance and balanced foreign policy make it a key ally in the region.

  • Loneliness in India: A Deepening Public Health Concern

    Central Idea

    • The World Health Organization (WHO) recently declared loneliness a significant global health threat, with an estimated 10% of adolescents and 25% of older people affected worldwide.
    • Despite being a collectivistic society with over 140 billion people, loneliness in India remains relatively understudied and unacknowledged as a public health and social issue.

    Understanding Loneliness

    • Definition: Loneliness is defined as the unpleasant experience due to a deficiency in one’s network of social relations, either quantitatively or qualitatively.
    • Health Impact: Comparable to smoking 15 cigarettes a day, loneliness can lead to severe mental and physical health issues, including heart disease, depression, and decreased longevity.

    Data and Trends in India

    • Historical Data: Studies from the early 1990s to recent years show varying rates of loneliness, with a notable increase in loneliness among the elderly and the highly educated.
    • Pandemic Effect: COVID-19 and subsequent lockdowns have exacerbated loneliness, particularly among young people and those living alone.

    Disparities and Challenges

    • Higher Among Educated Youth: Young, highly educated individuals face disproportionately higher rates of unemployment and loneliness, indicating a structural issue in the Indian economy.
    • Cultural Stigma: In India, loneliness is often dismissed as a phase or a state of mind, and discussing mental health is stigmatized, making it challenging to address the issue effectively.

    Public Health Implications

    • Rising Disease Burden: Loneliness contributes to an increased risk of various diseases, potentially inflaming India’s already rising communicable and non-communicable disease burden.
    • Inadequate Healthcare Infrastructure: India’s healthcare system struggles with inadequate staff, infrastructure, and budgetary allocation, further complicating the response to the loneliness epidemic.

    The Indian Experience of Loneliness

    • Cultural Differences: Unlike Western countries, India’s collectivistic culture and socioeconomic barriers present unique challenges in understanding and addressing loneliness.
    • Marginalized Communities: Loneliness disproportionately affects marginalized identities, and addressing it requires understanding the intersection of social inequity and mental health.

    Addressing Loneliness as a Structural Problem

    • Need for Targeted Interventions: Recognizing loneliness as a distinct condition can help develop interventions tailored to India’s cultural context.
    • Community-Based Solutions: Addressing loneliness may require community-focused strategies that respond to structural inequities rather than solely clinical approaches.

    Conclusion

    • National-Level Surveys: Conducting comprehensive surveys in local languages can help understand the true scale of loneliness in India’s diverse population.
    • Holistic Approach: Combating loneliness in India requires a multifaceted approach that includes improving mental health literacy, enhancing healthcare infrastructure, and addressing social inequalities.
    • Continuous Engagement: As loneliness gains recognition as a public health issue, India must continuously adapt its strategies to effectively support those affected by this silent epidemic.

  • Kashmiri political outfit declared unlawful under UAPA

    Central Idea

    • The Ministry of Home Affairs (MHA) has declared the Muslim League Jammu Kashmir faction as an “unlawful association” under the Unlawful Activities (Prevention) Act (UAPA) for five years.
    • It is a very rare occasion that any election-contesting political party has been banned under UAPA.

    Government’s Stance

    • The Union Home Minister emphasized that the organization and its members are involved in anti-national and secessionist activities, supporting terrorism, and inciting people to establish Islamic rule in Jammu and Kashmir.
    • It stated that the faction is engaged in anti-India and pro-Pakistan propaganda, aiming for Jammu and Kashmir’s secession from India, its merger with Pakistan, and the establishment of Islamic rule.

    About Understanding the Unlawful Activities (Prevention) Act (UAPA)

    • Purpose: The UAPA aims to prevent unlawful activities and associations in India, focusing on maintaining the country’s integrity and sovereignty. Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”.
    • Evolution: Originally passed in 1967, the UAPA has evolved from the Terrorist and Disruptive Activities (Prevention) Act (TADA) and the Prevention of Terrorism Act (POTA), with significant amendments in 2004 to include “terrorist act” in its scope.
    • Unlawful Activities: These include actions, whether by deeds, words, or visible representation, that work towards the cession or secession of a part of India, disrupt its sovereignty and territorial integrity, or cause disaffection against the country.
    • Unlawful Association: Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”. An association can be deemed “unlawful” if it engages in, supports, or encourages unlawful activities, as defined under Section 2(p) of the UAPA.

    Unlawful Activities and Funding

    • Fundraising for Terrorism: The Ministry highlighted that the outfit has been raising funds through various sources, including Pakistan, to support unlawful activities and terrorism.
    • Stone-Pelting Incidents: The group’s involvement in stone-pelting against security forces was cited as a sign of disrespect towards India’s constitutional authority and setup.

    Linkages with Terrorist Organizations

    • Terror Connections: The MHA provided evidence of the faction’s connections with banned terrorist organizations and its role in supporting terrorist activities to instill terror in the country.
    • Government’s Concerns: The Central government expressed concerns that if unchecked, the faction would continue its anti-national activities, challenging India’s territorial integrity, security, and sovereignty.

    Implications of the Ban

    • UAPA Enforcement: The declaration under Section 3 (3) of the UAPA signifies a stringent approach against the group’s activities for the next five years.
    • National Security Focus: This move aligns with the government’s commitment to maintaining national security and integrity, particularly in the sensitive region of Jammu and Kashmir.

    Conclusion

    • Strong Message: The government’s decision sends a clear message against any forces acting against India’s unity, sovereignty, and integrity.
    • Continued Vigilance: The ban reflects India’s ongoing efforts to combat separatism and terrorism, ensuring peace and stability in Jammu and Kashmir and across the nation.

  • INS Imphal: Everything you need to know

    ins imphal

    Central Idea

    • INS Imphal (Pennant D68), the third ship of the Visakhapatnam class stealth-guided missile destroyers, is set to join the Indian Navy.
    • Part of Project 15B, INS Imphal follows the lineage of the Delhi and Kolkata classes of indigenous destroyers.

    About INS Imphal

    Details
    Ship Name INS Imphal (Pennant D68)
    Class Visakhapatnam class stealth-guided missile destroyer (Project 15B)
    Commissioning Date Scheduled for December 26
    Builder Mazagon Dock Shipbuilders Limited (MDSL)
    Design Indian Navy’s Warship Design Bureau
    Propulsion System Combined gas and gas (COGAG) configuration with four gas turbines
    Maximum Speed 30 knots
    Range 4000 nautical miles
    Armament BrahMos surface-to-surface cruise missiles

    Barak-8 surface-to-air missiles

    127 mm main gun

    AK-630 30mm guns

    Torpedo launchers and anti-submarine rocket launchers
    Helicopter Facilities Can operate two multi-role helicopters (Sea King or HAL Dhruv)
    Strategic Features Stealth capabilities for reduced radar signature

    Advanced combat management system

    Total atmospheric control system (TACS) for protection against nuclear, biological, and chemical threats
    Significance Represents advanced naval warfare capabilities and strategic asset for the Indian Navy
    Tribute to Northeast India Named after the city of Imphal, honoring the strategic and historical significance of the Northeast region

  • SEBI’s Proposal for T+0 Instant Settlement Cycles

    Central Idea

    • The Securities and Exchange Board of India (SEBI) has proposed introducing T+0 (same day) and instant settlement cycles in the equity cash segment, alongside the existing T+1 cycle.

    Current Settlement Cycle  

    • Evolution: SEBI shortened the settlement cycle from T+5 to T+3 in 2002, and then to T+2 in 2003. The T+1 cycle was introduced in 2021 and fully implemented by January 2023.
    • T+1 Cycle: Currently, the settlement of funds and securities occurs on the next day after the trade.

    About T+0 Settlement Cycle

    • Phased Implementation: SEBI plans to introduce the shorter cycle in two phases: Phase 1 with T+0 Settlement and Phase 2 with Instant Settlement.
    • T+0 Settlement Details: In Phase 1, trades executed until 1:30 PM will be settled by 4:30 PM on the same day.
    • Instant Settlement Mechanics: Phase 2 envisages immediate trade-by-trade settlement, with trading continuing until 3:30 PM.

    Scope and Implementation

    • Initial Focus: Initially, the T+0 settlement will be available for the top 500 listed equity shares based on market capitalization, implemented in three tranches.
    • Surveillance Measures: The same surveillance measures applicable in the T+1 cycle will apply to the T+0 cycle. Trade-for-trade settlement securities will not be eligible for T+0.

    Rationale behind Introducing a Shorter Settlement Cycle

    • Market Growth and Efficiency: With the significant growth in market volumes and participants, SEBI aims to enhance market efficiency and safety, especially for retail investors.
    • Technological Advancements: The evolution of payment systems like UPI and the sophistication of market infrastructure support the feasibility of shorter settlement cycles.
    • Investor Attraction: Faster transactions, reliability, and low costs are key factors that attract investors, making Indian securities a more appealing asset class.

    Features of the Proposed T+0 Settlement Mechanism

    • Early Pay-In Trend: A large percentage of retail investors already make early pay-ins of funds and securities, indicating readiness for instant settlement.
    • Instant Receipt Benefits: The mechanism enables instant receipt of funds and securities, reducing settlement shortages and enhancing investor control.
    • Investor Protection: Direct crediting of funds and securities into investors’ accounts, especially for UPI clients, strengthens investor protection.

    Benefits of the New Mechanism

    • Flexibility for Clients: The new mechanism offers faster payouts of funds to sellers and securities to buyers, providing greater flexibility and control.
    • Market Ecosystem Advantages: The faster settlement cycle is expected to enhance the operational efficiency of the securities market, benefiting the entire ecosystem.

  • Space Exploration in 2024: Key Missions and Scientific Endeavors

    space

    Central Idea

    • The year 2024 is set to be a landmark year in space exploration, following significant achievements in 2023, including NASA’s OSIRIS-REx and India’s Chandrayaan-3 missions.

    Upcoming Missions

    • The year will feature several key missions under NASA’s Artemis plan and Commercial Lunar Payload Services, along with other international endeavors.

    [1] Europa Clipper Mission

    • Objective: NASA’s Europa Clipper will explore Jupiter’s moon, Europa, known for its icy surface and potential subsurface saltwater ocean.
    • Significance: The mission aims to assess Europa’s habitability for extraterrestrial life by studying its icy shell, geology, and ocean.
    • Launch Details: Scheduled for launch on October 10, 2024, aboard a SpaceX Falcon Heavy rocket, with arrival at Jupiter set for 2030.

    [2] Artemis II Mission

    • Program Goals: Part of NASA’s Artemis program to return humans to the Moon, including plans for a sustained presence and future Mars missions.
    • Mission Specifics: Artemis II, following the uncrewed Artemis I, will be the first crewed mission orbiting the Moon since 1972, planned for November 2024.

    [3] VIPER Lunar Mission

    • Mission Overview: VIPER (Volatiles Investigating Polar Exploration Rover) aims to explore the Moon’s south pole for volatiles like water and carbon dioxide.
    • Technology and Schedule: Equipped to handle extreme lunar temperatures, VIPER’s launch is scheduled for November 2024, focusing on resources for future human exploration.

    [4] Lunar Trailblazer and PRIME-1 Missions

    • SIMPLEx Program: These missions are part of NASA’s Small, Innovative Missions for Planetary Exploration (SIMPLEx), offering cost-effective, rideshare opportunities.
    • Objectives: Lunar Trailblazer will orbit the Moon to map water locations, while PRIME-1 will test drilling technology, both scheduled for mid-2024.

    [5] JAXA’s Martian Moon eXploration (MMX) Mission

    • Mission Focus: JAXA’s MMX mission aims to study Mars’ moons, Phobos and Deimos, to determine their origin.
    • Science Operations: The spacecraft will conduct a three-year mission, including landing on Phobos and returning a sample to Earth, with a launch planned around September 2024.

    [6] ESA’s Hera Mission

    • Mission Purpose: Hera, by the European Space Agency, will study the Didymos-Dimorphos asteroid system, following NASA’s DART mission’s kinetic impact in 2022.
    • Planetary Defense: Hera will assess the impact of DART’s collision and study the asteroids’ physical properties, with a launch set for October 2024.