GS Analyst: Daily Current Affairs

The International Labour Organisation’s (ILO) World Employment and Social Outlook: September 2024 Update highlights rising global inequality, stagnating labour income shares, and significant youth unemployment or inactivity. The report attributes some of these issues to technological advancements, particularly artificial intelligence (AI).

Key Points Made by the Report

• The global labour income share fell by 0.6 percentage points from 2019 to 2022 and has remained flat since, reflecting a long-term downward trend.
• The labour income share continued to decrease since 2019, declining to 52.3pc in 2022 and remaining at that level in 2023 and 2024.
• While the decrease appears modest in terms of percentage points, in 2024 it represents an annual shortfall in labour income of USD 2.4 trillion compared to what workers would have earned had the labour income share remained stable since 2004.
• Impact of Technological Innovations: Technological advancements, especially automation and AI, have led to increased labour productivity and output but have also contributed to a reduced share of labour income.
• COVID-19 Impact: The pandemic significantly worsened inequalities, with nearly 40% of the reduction in the labour income share occurring during 2020-2022.
• The report warns that without stronger policy interventions, the labour income share could continue to decline, further entrenching economic disparities.
• To mitigate adverse effects, the report advocates for policies that ensure equitable distribution of technological benefits, including freedom of association, collective bargaining, and effective labour administration.

Situation in India

• Labour Income Share: In India, like many other countries, the labour income share has faced challenges due to technological advancements and economic shifts. The impact of automation and AI on Indian industries and labor markets is evident, with significant effects on job security and wage growth.
• Youth Unemployment: India has a high rate of youth unemployment and underemployment, exacerbated by economic disruptions and technological changes. Many young people are either unemployed or not engaged in education or training, impacting their future economic prospects.
• Policy Responses: India has initiated various schemes and policies aimed at boosting employment and skill development, such as the Skill India Mission, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the National Career Service (NCS). However, challenges remain in addressing the full impact of AI and ensuring inclusive growth.
• Economic Inequality: Economic disparities in India are widening, influenced by factors such as
  • unequal access to technology
  • regional imbalances
  • concentration of wealth among the top income earners

India has recently embarked on a new policy paradigm to permit the blending of maize and grain-based ethanol under the National Policy on Biofuels (NPB) 2018. This policy has led to a significant change in its role in the global corn market, turning it from a major corn exporter into a net importer for the first time in decades.

Why demand for ethanol is increasing?

• Looking to curb carbon emissions, India aims to increase the share of ethanol in gasoline to 20% by 2025-26, from 13% now.
• To achieve its 20% blending target, India will need more than 10 billion litres of ethanol, which is double the volume the country produced in the marketing year ended October 2023.
• This year, around 3.5 million tons of corn has been used to make 1.35 billion litres of ethanol, about four times more than a year earlier.
• Sugarcane can start contributing more from the next season, but it cannot contribute more than 5 billion litres. The government's priority is to fulfil domestic sugar consumption.
• That would mean an increase in corn-based ethanol production to 3 billion litres, requiring nearly 8 million tons of corn.

Impact of shift in Corn demand

• Impact on Local Industries: The surge in corn prices due to increased domestic demand has significantly affected India’s poultry sector.
  • Rising feed costs, driven by higher corn prices, are pushing poultry producers into financial difficulty. They are calling for government intervention, including duty-free imports and the lifting of restrictions on genetically modified (GM) corn.
• Global Market Disruptions: India's shift from exporter to importer is reshaping global corn supply chains. Countries that traditionally sourced corn from India are now looking to other suppliers, such as South America and the United States, leading to shifts in global corn prices and trade patterns.
• Environmental and Economic Goals: India’s goal to increase the ethanol blend in gasoline to 20% by 2025-26 necessitates a significant rise in corn-based ethanol production. This shift reflects India’s broader environmental and energy policy goals but also highlights challenges in balancing domestic and global market needs.
• Trade Imbalances: The reversal in India’s corn trade balance—transitioning from exporting millions of tons annually to importing a record amount—illustrates the broader impact of its domestic policy changes on international trade dynamics.

A historic peace agreement was signed in New Delhi, marking the end of a 35-year insurgency in Tripura. Two insurgent groups (National Liberation Front of Tripura, and All Tripura Tiger Force) in Tripura have agreed to give up arms and join the mainstream. With the singing of this agreement, Tripura is left with no insurgent groups after many decades.

Key Details of the Agreement

• The agreement outlines the surrender of arms by over 328 cadres from the NLFT and ATTF.
  • The insurgency in Tripura, which began in 1967, peaked in the late 1980s with the rise of the NLFT and ATTF.
• To facilitate the transition, the Central Government has sanctioned a ?250-crore package to assist former insurgents in reintegrating into society and accessing various development schemes.
• The Northeastern region of India, encompassing Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura, has faced persistent internal security challenges for decades. This area has been afflicted by a variety of issues including insurgency, ethnic conflicts, economic marginalization, and cross-border infiltration.
• This accord marks the 12th settlement for the Northeast region and the third related to Tripura.
• It follows several significant peace agreements in the region, including:
  • Achik National Volunteer Council agreement (2014)
  • National Liberation Front of Twipra (Sabir Kumar Debbarma) of 2019
  • Bru Accord (2020)
  • Bodo Accord (2020)
  • Karbi Accord (2021)
  • Tribal Peace Agreement (2022)
  • Dimasa National Liberation Army Agreement (2023)
  • Assam-Meghalaya Interstate Border Agreement (2022)
  • Assam-Arunachal Pradesh Inter-State Boundary Agreement (2023)
• The scope of the Armed Forces (Special Powers) Act, or AFSPA, has also been reduced in many parts of the northeast as peace returned gradually.

Government Measures for North-East

The NER a strategic geographical location situated between India and Southeast Asia over the Bay of Bengal, has emerged as a precinct of promoting development and economic opportunities with international cooperation. The government has taken various initiatives to develop the region, including-

• Act East Policy: Launched in 2014, this policy aims to enhance economic ties between India and ASEAN countries, as well as other East Asian nations. It emphasizes the strategic importance of the Northeast for fostering regional cooperation and development.
• Act East Forum: Initiated in 2017 through a partnership between India and Japan, this forum facilitates close discussions and collaborative efforts focused on the development of the Northeast. It underscores the commitment to leveraging international partnerships for regional advancement.
• Free and Open Indo-Pacific (FOIP) Initiative: In March 2023, Japan launched a new initiative under FOIP to promote stability and prosperity in the Indo-Pacific region. This initiative includes a tripartite collaboration between India, Japan, and Australia, aimed at enhancing connectivity between the Northeast and the broader Indo-Pacific region.
• Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC): BIMSTEC plays a crucial role in facilitating connections and cooperation with countries bordering the Northeast. It supports the development of economic and technical links crucial for the region's progress.
• Connectivity Projects: India actively pursues regional connectivity with Myanmar through critical projects like the Kaladan Multi-Modal Project (KMMP) and the India-Myanmar-Thailand Trilateral Project (IMTTP).
  • The KMMP aims to improve connectivity to India’s NER via Bangladesh and Myanmar, linking India’s Kolkata port to Myanmar’s Sittwe port and extending to Mizoram through highways in Myanmar.
  • The IMTTP, conversely, will connect India’s border town, Moreh, to Mae Sot in Thailand via Myanmar, establishing a land route for seamless trade, business, education, and tourism among all three countries.

Due to incessant rain in the past few weeks and cloud burst, a massive landslide occurred in Nagaland’s Pherima village.

Why Landslide Took Place in Nagaland?

• A landslide is defined as the movement of a mass of rock, earth, or debris down a slope.
• Triggering factors: It can be triggered by various factors, including rainfall, undercutting of slopes, earthquakes, snowmelt, overgrazing, terrain cutting, and excessive development.
  • Rainfall is a primary natural trigger, influencing landslides through its combined action on topography, geology, soil, and vegetation.
• Nagaland's hilly terrain, consisting of steep slopes and high relief, is highly susceptible to landslides. The state is predominantly composed of shales and sandstones, which are often sheared, fractured, and weathered.
• Saturation of these rocks with water builds up high pore-water pressure, leading to a loss of shearing strength and collapse of the soil structure.
• Repeated thrusting and faulting further weaken the rocks, making them prone to rock falls and debris slides.
• Monsoon Influence: Landslides in Nagaland are exacerbated during the monsoon season when heavy rainfall increases the risk of landslides. The combination of steep slopes and saturated soil creates a high vulnerability to landslides.

Landslide Vulnerability in India

• Extent of Vulnerability: Approximately 0.42 million square kilometers of India’s landmass, or about 13% of its area, is prone to landslides. This includes regions across 15 states and four Union Territories.
• Northeastern Region: About 0.18 million square kilometers, or 42% of the vulnerable area, is in the Northeastern region, characterized by hilly terrain and a high incidence of earthquakes, which are significant landslide triggers.
• Regional Distribution: The Northwest Himalayas account for 66.5% of landslides in India, followed by the Northeast Himalayas at 18.8%, and the Western Ghats at 14.7%.

The Smart Cities Mission (SCM), which was launched to enhance the quality of life in urban spaces, has completed more than 90% of the total projects.

About Smart Cities Mission (SCM)

• Launched in: 2015
• The Smart City Mission is designed to enhance urban infrastructure, ensure a sustainable environment, and improve the quality of life for city residents.
• The mission encompasses the development of over 8,000 multi-sectoral projects with a total investment of approximately Rs 1.6 lakh crore, set to be completed by March 31, 2025.
• Current Progress: As of now, 7,188 projects, or 90% of the total, have been completed with a cumulative expenditure of Rs 1.4 lakh crore. The remaining 830 projects, valued at Rs 19,926 crore, are in the final stages of development.
• Implementation: The mission is carried out primarily through two approaches:
  • First, under the mission, cities are being developed using an Area-Based Development (ABD) approach, where each of the 100 cities has selected a defined area for targeted interventions. These ABD areas, chosen through citizen participation, are being developed as replicable models for other parts of the city.
  • Second, every city has included Pan-City Projects, which are technology-driven solutions.
• Some of the major projects under the SCM include Integrated Command and Control Centres (ICCC), which utilise data for making informed decisions, CCTV surveillance cameras which have aided in crime monitoring, emergency call boxes, public address systems and traffic enforcement systems for red light violations and automatic number plate recognition have been installed, enhancing public safety.

The government is expected to finalise the third phase of its flagship electric mobility adoption scheme FAME. FAME 3 will replace the temporary Electric Mobility Promotion Scheme (EMPS) 2024, which is set to expire in September.

About Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME)

• Fame India scheme is an incentive scheme that encourages the adoption of electric and hybrid vehicles.
• It was launched by the Ministry of Heavy Industries and Public Enterprises.
• Manufacturers and infrastructure providers of electric vehicles receive this incentive in the form of subsidies.
• Fame India scheme is a part of the National Electric Mobility Mission
• Fame India Scheme operates in two phases. These are,

• Phase I: The first phase of Fame India Scheme started in 2015 and was functional till 31st March 2019.
• Phase II: The second phase of this scheme started in April 2019 for three years. It was later extended up to March 2024 with an additional outlay of Rs 1,500 crore.

Other Government Schemes for EVs

• Production Linked Incentive (PLI) Scheme for Automotive Sector: The Government approved the PLI Scheme for Automotive Sector in 2021 with a budgetary outlay of Rs. 25,938 crores to support domestic manufacturing of vehicles. Electric vehicles are covered under this PLI scheme.
• PLI Scheme for Advanced Chemistry Cell (ACC): The Government approved PLI Scheme for manufacturing of ACC for 50 GWh in the country. Additionally, 5GWh of niche ACC technologies is also covered under the Scheme.
• GST on EVs has been reduced from 12% to 5%; GST on chargers/ charging stations for EVs has been reduced from 18% to 5%.
• Ministry of Road Transport & Highways (MoRTH) announced that the battery-operated vehicles will be given green license plates and be exempted from permit requirements.

The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) is currently under scrutiny due to its role as the project proponent for a massive Rs 72,000 crore infrastructure development project on Great Nicobar Island.

About ANIIDCO

• ANIIDCO was founded on June 28, 1988, under the Companies Act.
• Objective: To develop and commercially exploit natural resources for balanced and environmentally friendly development of the Andaman and Nicobar Islands.
• Main Activities: Trading petroleum products, Indian-made foreign liquor, and milk; managing tourism resorts; and infrastructure development for tourism and fisheries.
• Financial Performance: Average annual turnover of ?370 crore and a profit of ?35 crore over the last three financial years.
• Concerns Regarding ANIIDCO’s Capability
• Lack of Environmental Policy: ANIIDCO did not have an environment policy or cell when appointed as project proponent in July 2020.
• Delayed Recruitment: Only began recruiting experts in late 2022, over two years after being appointed.
• Conflicts of Interest: Several ANIIDCO employees hold civil servant positions related to environmental and tribal welfare issues, suggesting possible conflicts of interest. Despite these concerns, ANIIDCO received environmental clearance in November 2022.

In a significant milestone to develop bilateral naval cooperation, the Indian Navy and the South African Navy have signed an Implementing Agreement (IA) that ensures the safety of the South African Navy’s submarine crew in times of distress or accident.

Key-highlights of the Agreement

• Under this agreement, the Indian Navy will provide assistance by deploying its Deep Submergence Rescue Vehicle (DSRV) when required, further strengthening the collaborative ties between the two navies. This partnership reinforces the longstanding maritime relationship between India and South Africa.
• Need: In 2023, three South African Navy personnel were killed after an incident at sea off the coast of Cape Town with SAS Manthatisi, one of the three HDW submarines from Germany in service. South Africa is among a handful of African countries with submarines.

On October 20, 1936, Sarvepalli Radhakrishnan delivered a seminal lecture titled “The World’s Unborn Soul” as the newly appointed Spalding Professor of Eastern Religion and Ethics at the University of Oxford. This lecture remains relevant today as it addresses the global issues of interconnectedness and the crisis of ideologies.

Global Interconnectedness and Political Fragmentation

• Unity Through Science and Technology: Radhakrishnan highlighted that science and technology have united the world into a single community of fate, where economic and political phenomena increasingly necessitate a global perspective.
• Failure of Political Adjustments: Despite this interconnectedness, political structures and individual identities remain fragmented and fail to reflect the reality of global unity, resulting in ineffective attempts at achieving human unity.
• Moral and Ideological Crisis: The misalignment between global interdependence and traditional political and social identities creates a moral and ideological crisis, jeopardizing the collective future.

Exhaustion of Ideologies and Emerging Challenges

• Historical Context of Civilizations: Radhakrishnan traced the evolution of civilizations from Greek empiricism to Enlightenment ideals, noting that while each era contributed to human progress, they also revealed the limits of their respective ideologies.
• Fragility of Modern Self: The decline of old faiths has led to a more fragile sense of self, with individuals increasingly relying on psychoanalysis to address existential issues and self-maintenance.
• State Power and Nationalism: The growing power of the state and the rise of nationalism are identified as dangerous developments, with nationalism serving as a regressive force that intensifies irrational and divisive sentiments.

Directions for the Future

• Cultural Openness: Radhakrishnan advocated for a fusion of global cultural influences, emphasizing that the world’s cultural base should extend beyond Eurocentric perspectives to include diverse global traditions.
• Self vs. Ego: The lecture emphasized the need to differentiate between the Self and the Ego, suggesting that true spirituality involves transcending the Ego and engaging deeply with the Self to overcome artificial barriers and prejudices.
• Global and Spiritual Unity: Radhakrishnan proposed that spiritual and moral renewal requires an open, inclusive approach that embraces global cultural contributions and addresses the inner conflicts of the individual.

Practice Question

Q. Analyze Sarvepalli Radhakrishnan’s views on the implications of global interconnectedness and the exhaustion of traditional ideologies as presented in his lecture “The World’s Unborn Soul.” How do these perspectives inform current global and national challenges?

The Supreme Court of India’s landmark judgment in The State of Punjab and Ors. vs Davinder Singh and Ors., concerning the sub-classification of reservations within Scheduled Castes (SCs) is significant as it aims to address inequalities within the SC community by recognizing the diverse socio-economic conditions of various sub-castes. The judgment reflects a deeper engagement with the principles of social justice and B.R. Ambedkar’s vision but has also faced criticism from some Dalit groups.

Social Justice and Ambedkar's Vision

• Ambedkar's Struggle:R. Ambedkar dedicated his life to fighting for social and civil justice for the most oppressed, including efforts to secure cultural rights and dismantle caste hierarchies. His practical measures, such as the Mahad Satyagraha, were aimed at confronting caste-based discrimination.
• Internal Divisions: Ambedkar emphasized the need to address internal divisions within the SC community, acknowledging varying degrees of discrimination among different jatis.
• Judgment's Alignment: The Supreme Court's judgment seeks to address these internal disparities by sub-classifying reservations, aligning with Ambedkar’s ideals of social justice and equitable representation.

Criticism and Response

• Criticism from Leading Dalit Groups: Some prominent Dalit organizations have expressed concerns that sub-classification may weaken their collective political influence and fragment the Dalit movement.
• Regional Differences: In North India, there is resistance to the judgment, while South Indian Dalit organizations largely support it, reflecting regional variations in response to the sub-classification debate.
• Potential Benefits: Despite criticisms, sub-classification could enhance social justice by addressing the specific needs of marginalized sub-castes and reinforcing Ambedkar’s vision of equitable representation.

Reflection on Execution and Future Directions

• Historical Context: The judgment reflects a historical struggle for representation and justice, building on past successful models of sub-classification in Punjab and Haryana.
• Implementation Challenges: Effective implementation of the judgment remains a concern, requiring careful management to avoid fragmentation and ensure equitable benefits.
• Future Focus: The movement should advocate for broader reforms, including extending reservations to the private sector and pursuing land redistribution, to enhance representation and material benefits for all Dalit communities.

Practice Question:

Q. Discuss the significance of the Supreme Court's judgment regarding the sub-classification of reservations for Scheduled Castes. Analyze how this judgment aligns with B.R. Ambedkar’s vision of social justice.

The Union Budget's allocations for the health sector, including major Centrally Sponsored Schemes (CSS) like the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) and Human Resources for Health and Medical Education (HRHME), are facing low utilisation rates. This underperformance affects the planned improvements in health infrastructure and medical education.

Low Utilisation of Funds

• PM-ABHIM Fund Absorption: In the PM-ABHIM initiative, the expenditure in 2022-23 was only 29% of the Budget Estimate, with a slight improvement to 50% in 2023-24, but likely lower in actuals.
• HRHME Fund Utilisation: Utilisation under HRHME was approximately 25% of Budget Estimates in both 2022-23 and 2023-24, prompting budget cuts.
• Challenges with Grants: Utilisation issues are partly due to low absorption of 15th Finance Commission health grants and complex execution structures.

Implementation Challenges

• Execution Structure: The AB-HWC component faces delays due to the complex structure of health grants and reorganisation needs for IDPHLs.
• Construction Delays: The construction-focused components like BPHUs and CCHBs are delayed by rigid procedures and overlapping funding sources.
• Faculty Shortages: Under HRHME, a significant shortage of teaching faculty (over 40%) in newly established medical institutions hinders effective utilisation of infrastructure.

Fiscal and Operational Issues

• Maintenance Costs: States must cover recurring maintenance costs for new infrastructure built under PM-ABHIM and HRHME, beyond the Union government’s support period ending in 2025-26.
• Fiscal Space: States need additional fiscal capacity to support these ongoing expenses and other health initiatives.
• Human Resource and Management: Effective utilisation of capital expenditure requires addressing human resource shortages and improving public financial management.

Practice Question

Q. What are the factors contributing to the low utilisation of funds in Centrally Sponsored Schemes (CSS) like PM-ABHIM and HRHME? Examine the implications of these challenges on the overall health infrastructure development in India.