GS Analyst: Daily Current Affairs

Context:

India's aim of becoming the third-largest economy by 2028 must include an enhanced participation of women in the formal sector, and manufacturing can help in it.

Gender Disparities in Financial Security

• Gender Gap in National Pension Schemes: NPS data shows that only 22% women subscribers of APY slightly better at 46:54. Gender disparities rooted in informal work and biological roles.
• Challenges in Maternity Benefits: The Maternity Benefit Act of 1961 offers paid leave but applies mainly to establishments with over ten employees, leaving the vast informal sector uncovered.
• Sexual Harassment Protection: The Sexual Harassment of Women at Workplace Act of 2013 requires local committees for informal sector cases but faces implementation challenges.

Need for Gender-Inclusive Growth

• Low Female Labour Force Participation: India's female labour force participation rate is one of the world's lowest, particularly among G20 nations, at 23%.
• Importance of Formal Employment: Gender-inclusive growth is vital for empowering women in decision-making and socio-political independence.
• Creating Formal employment: India must prioritize gender inclusivity in formal employment, including the manufacturing sector, to harness its economic potential.

Fostering Inclusive Workforce Participation

• Opportunities in the Manufacturing Sector: Female participation in the sector has been stagnant, hovering around 20%, lagging behind East Asian and Pacific countries.
• Path to Economic Empowerment: Fostering gender-inclusive growth will not only empower women but also contribute significantly to the nation's economic progress.
• Way forward: India's aspirations in the global economic landscape depend on equal opportunities and a diverse, inclusive workforce.

Context:

India must redouble efforts to make economic growth more inclusive and broad-based.

India's Ambitious Technological Pursuits

• Government Investment in Advanced Technologies: India invested in advanced tech during the 1950s-60s, creating prestigious institutions and showcasing its resolve to excel in innovation.
• Criticism of the Moonshot Strategy: Critics questioned India's public investment in tech, suggesting a focus on labor-intensive industries. Yet, technology's high costs required public backing.
• Efforts and Vision: Leaders like Vikram Sarabhai saw the potential of technologies like satellites for national development, including telecommunications and education.

Inequalities and Hindrances to Progress

• Inequalities in Land Ownership: India's failure in land redistribution limited assets for marginalized groups, obstructing education and perpetuating social inequalities in the job market.
• Impact on Economic Growth: Inequalities hindered India's economic growth, skewed domestic demand, stunted mass-consumption industries, and stifled entrepreneurial diversity and innovation.
• Lack of investment in key industries: To compete in rapidly growing economic fields like semiconductors and biotechnology, India must reinstate such efforts.

Revisiting India's Development Strategy

• The Need for Generous State Support: India must acknowledge past success in tech and industry, reinstate state support, and revise industrial policies, following global examples.
• Promoting Inclusive Growth: India should focus on making economic growth more inclusive and broad-based.
• Focus on Accessibility to education, especially higher education, should be extended to all, including marginalized and disadvantaged populations.

Context:

The discrepancies in measurement of Gross Domestic Product (GDP) can make price volatility and consumers drawbacks.

Disputes over India's GDP Growth Rate

• Data Interpretation Discrepancies: Critiques incorrectly measure real GDP, highlighting the volatility of GDP price deflator. Normalizing data reveals less significant gaps, but substituting with a stable CPI measure suggests higher GDP growth rates.
• GDP Price Deflator vs. CPI: The GDP price deflator's volatility is influenced by factors like the Ukraine war and pandemic, impacting nominal GDP.
• Expenditure components of GDP: Expenditures are analysed over varying periods to substantiate claims of economic deceleration.

Critiques of the National Statistical Office

• Criticism of GDP Growth Number: The argument revolves around a perceived underestimation of GDP's output value in the first quarter.
• Comparison with US GDP Data: The US GDP data, often considered a benchmark, also experiences some divergence between GDP and GDI.
• Manufacturing sector and comparison: The 8% growth estimate for the first quarter but note potential manufacturing sector bias.

Defending the Statistical Methodology

• Appreciating the Methodology: Articles disputing GDP growth should acknowledge the methodology used in national accounts computation.
• Administrative body responsible: Casting aspersions on the statistical body is unwarranted when the economic momentum remains strong.
• India’s ability for growth: India's robust economic growth is likely to continue, making it one of the world's fastest-growing economies.

Context:

India needs clear research and development plan to scale up ethanol production.

India's Growing Import Dependence and Bioenergy Potential

• High Import Dependence and Energy Security: India's FY2023 import dependency on oil is 87.3%, costing 25.8% of imports.
• Resource availability: Biomass provided up to 20% of India's total primary energy supply in the past decade, mainly for households.
• Role of the Global Biofuel Alliance: India's G20 presidency formed the Global Biofuel Alliance, aiming to harness biomass as clean bio-energy.

Progress in Ethanol Blending

• Future Goals: Plans to increase blending to 20% (E20) by FY25-26 are accelerated, demanding substantial investments and feedstock.
• Challenges in Reducing Petrol Demand: A NITI Aayog report projects a 45% growth in petrol demand by 2030, necessitating solutions beyond blending.
• Chase the alternatives: Electric vehicles (EVs) face mineral and component challenges, making biofuels and flex-fuel vehicles viable alternatives.

Scaling Up Ethanol Production and Addressing Tradeoffs

• Focus on First-Generation Ethanol Production: India predominantly relies on first-generation ethanol production, primarily from food crops like sugarcane and grain.
• Reducing Petrol Consumption: Policy should prioritize reducing overall petrol consumption and private demand through strategies like EV promotion.
• Promoting Biofuels: A well-planned transition strategy can not only reduce the import bill but also aid the automotive industry's EV transition.