4-November-2024-Daily-Current-Affairs

INDIA’S PATH TO ECONOMIC TRANSFORMATION

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

China, an autocracy, has seen notable wage growth despite limited returns for shareholders. Conversely, India, a democracy, has enjoyed high shareholder returns alongside weaker wage growth. This divergence underlines the distinct paths these countries have taken toward economic growth, underscoring India’s struggle with “employed poverty” and constrained industrial growth.

Comparative Economic Puzzle: India vs. China

• China’s Economic Growth: Under autocratic governance, China has focused on wage growth, but public market returns for shareholders have been minimal, averaging -13% over the last 20 years.
• India’s Economic Growth: As a democracy, India has seen a 1,300% rise in shareholder returns over the past two decades. However, wage growth has lagged, posing a unique challenge.
• Historical Roots: India’s economic structure, shaped since 1947 and evolving with 1991’s economic liberalization, has impacted job creation and wage distribution.
• Need for Industrialization: To sustain long-term economic transformation, India must focus on creating high-productivity firms and expanding manufacturing jobs.

India’s Post-Independence Progress and Social Mobility Hurdles

• Achievements Since 1947: India has grown into the world’s largest democracy, with life expectancy improving from 31 to 68 years and achieving middle-income status.
• Social Mobility: Although progress has been made, social mobility remains low. Middle-income countries, like India, have 40% less social mobility than high-income nations.
• Global Economic Context: According to the World Bank’s Chief Economist, Indermit Gill, only a few middle-income economies have successfully reached high-income status, highlighting the challenges for India.

Employment Structure and Economic Challenges

• Labor Force Composition: India’s labor force is concentrated in low-productivity sectors:
  • 11% in manufacturing
  • 14% in construction
  • 45% in agriculture
  • 30% in services
• Self-Employment: Many farmers are informally self-employed, leading to what is termed “self-exploitation.”
• Economic Solution: A shift from agriculture to manufacturing is critical to enhance productivity, drawing from China’s successful transition of labor from farms to factories.

Barriers to India’s Industrial Growth

Factors that Are Not Major Barriers:

• Land and Labor: India has sufficient land and a large low-productivity labor force.
• Capital: With half of all foreign direct investment (FDI) since independence arriving in the past five years, capital is ample.
• Economic Stability: Growth rates have risen from the historical “Hindu rate of growth” (2%) to around 7%, without significant social or political upheaval.
• Financial Strengthening: Improvements in banking and equity markets have bolstered macroeconomic stability.

Key Structural Barriers:

• Infrastructure: Although India has made strides in infrastructure investment, improvements in transportation and logistics are ongoing.
• Skills Development: Policies such as the National Education Policy (NEP) 2020 aim to improve workforce skills. Reports like the Annual Status of Education Report (ASER) show improvements in learning outcomes, suggesting potential for low-skill manufacturing.
• Regulatory Complexity: Excessive compliance, termed “regulatory cholesterol,” burdens small and informal firms. Complex filing requirements, criminalization of minor offenses, and frequent regulatory changes hinder growth.

Long-Term Vision: Building Mass Prosperity via Manufacturing

• Potential for Manufacturing Growth: Success in areas such as electronics assembly shows that India can succeed in labor-intensive manufacturing. Low current employment in manufacturing indicates potential for expansion.
• Economic Impact: Increasing manufacturing employment to 18-20% of the workforce could significantly boost economic complexity, wage growth, and technological advancements.

Strengthening Domestic Consumption

• Service Sector Growth: Job growth in areas like sales, customer service, and logistics is accelerating, fueled by India’s strong domestic market demand.
• “Make for India” Approach: Supporting industries that meet domestic demand is essential. For instance, policies that supported local car manufacturing enabled India to meet its demand locally rather than relying on imports from Thailand or China.

Policy Recommendations to Boost Manufacturing and Domestic Demand

• Regulatory Reforms: Initiatives such as Jan Vishwas 2.0, Enterprise Digilocker, and the National Open Compliance Grid are being introduced to streamline compliance and ease business operations.
• Revised Labor Codes: Updating labour laws, enhancing competition in social security provisions (like Employee Provident Fund and Employees’ State Insurance), and reducing statutory wage gaps could support formal employment.
• Strategic Tariff Application: Moderately applied tariffs can support domestic manufacturing while maintaining export competitiveness. For example, the Indian automotive industry thrived with moderate import restrictions, attracting foreign investment and fostering local growth.

Conclusion

India’s journey toward economic prosperity and social mobility requires fostering high-productivity manufacturing and supporting service sectors that leverage domestic demand. By enhancing infrastructure, streamlining regulations, and creating skilled labour policies, India can realize its long-standing vision of mass prosperity

ASSESSING INDIA’S TUBERCULOSIS BURDEN

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

India has one of the highest burdens of tuberculosis (TB) globally, with the country accounting for over a quarter of the world’s TB cases and deaths in 2023. This significant health challenge highlights both progress made and areas requiring attention in India’s fight against TB.

• Tuberculosis remains a major health challenge for India, with the country reporting the highest number of cases and deaths globally in 2023.
• While India has seen a decline in TB incidence and mortality over the past decade, certain risks, including relapse cases, continue to pose challenges in the fight against TB.
• This analysis draws insights from the Global Tuberculosis Report 2024, which highlights key trends, risk factors, and financial efforts in TB control in India.

India’s TB Burden: Global Context

Global Share of TB Cases and Deaths

• India accounted for 26% of all TB cases worldwide in 2023, followed by Indonesia, China, the Philippines, and Pakistan.
• Around 26% of global TB deaths, including among people with HIV, occurred in India, underlining its significant share in the global TB burden.

Concentration of Cases

• Globally, TB cases were concentrated mainly in five countries, with India leading, followed by other high-burden nations like Indonesia and China.
• These five countries collectively reported more than half of the global TB cases, demonstrating the need for targeted interventions.

Trends in India’s TB Incidence and Mortality

Decline in TB Deaths

• TB-related deaths in India dropped from 580,000 in 2010 to 320,000 in 2023, marking a positive trend in reducing TB mortality.
• Despite this improvement, India still contributed a large proportion of TB deaths, indicating that further efforts are necessary.

Decrease in TB Incidence

• The incidence rate, or the number of new cases relative to the population, declined in India from 275.7 cases per 100,000 people in 2010 to 194.9 cases in 2023.
• This decreases signals progress in reducing TB spread, yet challenges remain with relapse cases and specific population vulnerabilities.

Increase in TB Relapse Cases

Relapse Cases Surge

• Notified TB relapse cases saw a notable rise in 2023, reaching the highest levels since 2010.
• Relapse cases, predominantly affecting men, emphasize the importance of effective treatment adherence and follow-up care.

Gender Differences

• Data shows that TB disproportionately affects men in India, raising concerns over targeted awareness and treatment for this demographic.

Risk Factors for TB in India

Underlying Health Conditions

• Certain groups are at higher risk of contracting TB, especially those with nutritional deficiencies, diabetes, or those who smoke.
• Addressing these co-morbid conditions is essential to reduce TB vulnerability.

Preventive Treatment Uptake

• The number of people receiving preventive TB treatment has been on the rise, helping reduce the risk of active infections.
• Increased prevention efforts could further lower the incidence and impact of TB.

Financial Investments in TB Control

Domestic Funding Rise

• In 2023, domestic funding for TB prevention and treatment in India rose by 38%, reaching $253 million.
• Although this is an increase compared to previous years, it remains below pre-COVID levels, suggesting a need for sustained funding.

Decline in International Funding

• While domestic investment saw an upturn, international funding for TB control declined in the same period.
• This drop in international support underscores the importance of bolstering national resources for a comprehensive TB response.

Efforts Toward Universal Health Coverage

Health Expenditure Growth

• Between 2000 and 2021, health expenditure per capita has significantly increased in several lower-middle-income countries, including India.
• This rise in expenditure reflects efforts to achieve universal health coverage, a crucial factor in effectively managing and preventing TB.

TB Prevalence Survey

• India is among three countries that completed a national TB prevalence survey since 2019.
• This survey aids in understanding the current TB landscape, helping guide policies for better control and treatment.

Conclusion

India’s battle against TB is marked by progress in reducing deaths and incidence, yet the country still bears a considerable portion of the global TB burden. Enhanced domestic funding, targeted interventions for high-risk groups, and improved relapse case management are key to advancing TB control efforts. The rise in health spending toward universal health coverage also signifies an important step forward.

WORLD CITIES DAY AND THE CHALLENGES FACED BY INDIAN CITIES

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

World Cities Day Celebrated every October 31, this day emphasizes urban issues globally. In 2024, the theme is “Youth Climate Changemakers: Catalysing Local Action for Urban Sustainability.” With around 57.5% of the world’s population living in urban areas, this figure is expected to double by 2050.

Major Challenges Faced by Cities Globally

Climate Change Threats

• Climate change poses significant risks to urban areas, increasing incidents of extreme weather and environmental hazards.
• Cities face air pollution, heatwaves, and flooding, which disproportionately affect poorer communities.

Poverty and Inequality

• Urban poverty and inequality persist, particularly in the Global South, where rapid urbanization exceeds available infrastructure and resources.
• Challenges include limited access to affordable housing, healthcare, and sanitation, causing inequality to deepen.

Infrastructure Shortcomings

• Growing populations stress city infrastructure, leading to shortages in essential services like clean water, sanitation, and transportation.
• Many urban areas lack sufficient resources to manage basic services for their growing populations.

India’s Urbanization Journey

Historical Background

• Unlike Western nations where urbanization followed industrialization, India’s urban growth is largely “poverty-driven.”
• Economic hardship drives migration, both from rural to urban and within urban areas, as people search for better opportunities.

Migration Patterns

• Migration has been a crucial factor, driven by economic needs rather than industrial expansion.
• The COVID-19 pandemic highlighted urban planning gaps, as the reverse migration of workers exposed limitations in urban support systems.

Key Challenges in Indian Cities

Lack of Up-to-Date Urban Data

• Without data from a 2021 Census, there is limited clarity on India’s exact urban population, although estimates suggest it may be around 40%.
• This lack of data complicates urban planning and policymaking.

Spatial Planning Issues

• Many urban plans are outdated and don’t match the pace of population growth, leading to overcrowded and inadequate living conditions.
• With the shift from manufacturing jobs to service and informal sectors, there is a higher concentration of people living in slums or peri-urban areas.

Climate Change and Pollution

• Urban areas face rising temperatures and pollution, with eight of the ten most polluted cities in India located around Delhi.
• Climate events like flooding and heatwaves severely impact urban health and infrastructure, worsening the “urban heat island effect.”

Social Inequality and Segregation

• Urban planning often favors high-capital projects over affordable housing and public spaces, leading to “exclusive” developments for wealthier sections.
• This has led to a widening inequality gap, with a significant portion of the population lacking basic services and decent living conditions.

Governance and Administrative Limitations

• The 74th Constitutional Amendment aimed to empower urban local bodies but has largely fallen short due to limited authority transfer.
• Parastatals and private entities often manage urban planning, with elected city representatives having minimal control.
• Cities receive only 0.5% of India’s GDP in intergovernmental funds, which restricts local governments’ ability to address city-specific issues.

Climate Change and Rising Inequality: Implications for Urban Growth

Impact of Climate Change

• Climate change has led to an increase in natural disasters and extreme weather conditions, which can damage urban infrastructure.
• Urban populations, especially in informal settlements, are highly vulnerable to climate risks.

Economic Inequality’s Role

• Rising inequality creates a stark division in city life, where high-end developments coexist with vast informal settlements.
• This inequality restricts access to opportunities, causing further socio-economic divides in urban areas.

Way Forward: Addressing Challenges in Urban Growth

Improved Urban Planning

• Update and make urban plans more adaptable to current population trends.
• Emphasize inclusive planning, focusing on the needs of all residents, including vulnerable communities.

Empowering Local Governments

• Increase the functions transferred to urban local bodies, enabling them to handle planning, housing, and infrastructure.
• Allocate more funds to urban areas to ensure they have the resources to address localized challenges.

Sustainable Development and Climate Action

• Adopt policies that promote sustainable urban development and prioritize climate resilience.
• Develop green spaces and invest in renewable energy solutions to reduce pollution and mitigate the urban heat island effect.

Tackling Inequality

• Increase affordable housing projects to reduce the prevalence of slums.
• Invest in public health, education, and transportation to improve the quality of life across socio-economic backgrounds.

Enhanced Data Collection and Research

• Conduct regular surveys and censuses to keep track of urbanization trends.
• Use data to make informed decisions about infrastructure, housing, and climate mitigation.

Conclusion

India’s rapid urbanization brings both opportunities and challenges, making World Cities Day a crucial time to reflect on sustainable urban growth. Addressing infrastructure gaps, improving governance, and investing in climate resilience are essential to build inclusive and sustainable Indian cities. Through effective planning and policy, India can turn urban challenges into opportunities for more balanced development.

BLACK HOLE TRIPLE SYSTEM

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU

Scientists have recently discovered a rare “black hole triple” system, located about 8,000 light-years away in the Cygnus constellation. This system features a black hole actively consuming a nearby star, with another star orbiting the system at a much greater distance.

About the black hole triple system

A “black hole triple” system consists of a black hole with two accompanying stars. In this specific system, one-star orbits close to the black hole, while the second star remains far from it, taking approximately 70,000 years to complete its orbit around the system.

Discovery Details:

• Black Hole Identification: The black hole in this system is named V404 Cygni, identified by scientists analysing existing astronomical data.
• Location and Characteristics: Situated in the Cygnus constellation, V404 Cygni has a mass roughly nine times greater than that of the Sun.
• Gravitational Interactions: The gravitational pull among the three objects confirmed the presence of this unusual triple structure.

Significance of the Discovery

Challenges Traditional Theories:

• This discovery questions conventional models of black hole formation, which typically suggest that black hole’s form from supernova explosions, ejecting any nearby stars in the process.

Direct Collapse Hypothesis:

• V404 Cygni is believed to have formed through a process called “direct collapse” or “failed supernova,” where the original star collapsed directly into a black hole without an explosion.
• This non-explosive formation allowed the black hole to retain its nearby stars, a situation that would be unlikely if the formation had involved a supernova.

Implications for Understanding Binary and Triple Systems:

• The discovery implies that some known binary black hole systems may have originated as triple systems.
• In these cases, the black hole could have later absorbed one of the stars, leaving behind a binary configuration.

Key Points

• Unique Structure: The system consists of a black hole and two stars, making it a rare triple configuration.
• Black Hole Name: V404 Cygni is the black hole at the core of this system, weighing nine times the mass of the Sun.
• Unusual Formation: V404 Cygni likely formed through direct collapse, avoiding the explosive nature of supernovae and enabling nearby stars to remain in orbit.
• Broader Implications: This discovery provides new insights into how black holes and their companion systems may evolve, suggesting that some systems classified as binary may have initially been triple configurations.

CONCLUSION:

This discovery advances our understanding of black hole formation and raises the possibility of revising models of stellar evolution and black hole system dynamics.

ABOUT THE NAMO DRONE DIDI SCHEME

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: PIB

Government of India Launched under the DAY-NRLM program, to provide women SHGS with drones for agricultural applications, helping them develop skills, earn additional income, and boost the efficiency of farm-related activities.

Administering Body:

• Managed By: The Department of Agriculture & Farmers’ Welfare in collaboration with the Ministry of Rural Development.

Key Features:

• Financial Assistance: The government covers 80% of the drone cost, with a cap of ₹8 lakh per drone. SHGs can access loans for the remaining cost through the Agriculture Infrastructure Fund (AIF), which offers an interest subsidy of 3%.

• Equipment: Each package includes a drone equipped with a spray system, additional battery packs, a year of warranty, two years of maintenance, and insurance coverage.
• Training: SHG members are trained over a 15-day period on drone operation, maintenance, and agricultural application.
• Implementation Partners: State Lead Fertilizer Companies (LFCs) and State Departments facilitate the scheme, allocating drones to SHG clusters across the states.
• IT-Based System: A Management Information System (MIS) Drone Portal will monitor drone deployment, usage, and service quality to ensure effective implementation.

Key Points of the Scheme

• Women Empowerment: By providing SHGs with drones, the scheme promotes self-reliance among rural women, encouraging them to take on roles in advanced agricultural practices.
• Technology in Agriculture: Drones help increase precision in farming activities like spraying fertilizers and pesticides, making agricultural operations more efficient.
• Financial Benefits: SHGs receive significant government support to manage initial costs, with further loan assistance to cover remaining expenses.
• Training and Skill Development: A 15-day training course ensures that SHG members gain essential skills in drone usage and maintenance, enabling them to manage agricultural services independently.
• Sustainable Implementation: Drones are distributed and maintained through partnerships with state agencies and companies, ensuring sustainable and effective service delivery.

Conclusion

The Namo Drone Didi scheme represents an important step in integrating technology into rural livelihoods, empowering women SHGs with skills and tools to increase agricultural productivity and income opportunities.

VAJRA PRAHAR AND GARUD SHAKTI

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

India recently took part in two significant joint military exercises with its Special Forces: Exercise VAJRA PRAHAR with the United States and Exercise GARUD SHAKTI with Indonesia. These exercises aim to improve coordination, tactical knowledge, and joint mission capabilities.

Exercise VAJRA PRAHAR

• Participants: Indian Army Special Forces and US Army Green Berets.
• Location: Orchard Combat Training Centre, Idaho, USA.
• Objective: To strengthen cooperation, joint operational abilities, and interoperability between Indian and US Special Forces.

Training Focus:

• Mission Execution: Joint planning and execution of missions in desert and semi-desert environments.
• Tactics & Skills: Training on reconnaissance, psychological operations, and the use of Unmanned Aerial Systems (UAS).
• Joint Operations: Developing capabilities for conducting missions together with effective teamwork and coordination.

Exercise GARUD SHAKTI

• Participants: Indian Parachute Regiment (Special Forces) and Indonesia’s Special Forces, Kopassus.
• Location: Cijantung, Jakarta, Indonesia.
• Objective: To increase cooperation, tactical skills, and interoperability between Indian and Indonesian Special Forces.

Training Focus:

• Jungle Warfare: Conducting special operations in jungle environments.
• Counter-Terrorism: Techniques for striking terrorist camps and conducting tactical operations.
• Information Sharing: Exchange of knowledge on weaponry, equipment, and specialized methods used by both forces.

CONCLUSION:

These exercises are crucial for enhancing India’s military ties with the United States and Indonesia, enabling Indian Special Forces to gain experience in diverse combat environments, improve joint operational capabilities, and share advanced tactical skills and equipment knowledge.

THE BRICS SUMMIT: A BOOST FOR INDIA-IRAN RELATIONS

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

At the 16th BRICS Summit held in Kazan, Russia, in October 2024, a significant dialogue took place between Indian Prime Minister Narendra Modi and Iranian President Masoud Pezeshkian. This was their first official meeting, aiming to deepen bilateral ties between India and Iran amid Iran’s request for India’s diplomatic support to help ease the Gaza conflict

Key Areas of Cooperation

The meeting highlighted several core areas where India and Iran can strengthen their collaboration:

Chabahar Port Development:

• Strategic Role: Chabahar Port remains a cornerstone of India-Iran relations, with a 10-year operational contract signed in May 2024, reinforcing its significance for regional trade.
• Trade and Connectivity Hub: Chabahar serves as an alternative trade route, bypassing the Persian Gulf’s Strait of Hormuz, minimizing potential disruptions from regional tensions.
• Connectivity Enhancements: Plans for a 700 km railway from Chabahar to Zahedan are underway, which will link to the International North-South Transport Corridor (INSTC), improving trade with Central Asia.
• Humanitarian Aid Access: A proposed road from Zahedan to Zaranj in Afghanistan aims to facilitate India’s humanitarian aid to Afghanistan, highlighting Chabahar’s multifaceted importance.

International North-South Transport Corridor (INSTC):

• Purpose: The INSTC is an essential trade route that connects India with Central Asia, Russia, and Europe, offering a shorter, more efficient path for trade compared to existing routes.
• Implications for India-Iran Trade: Enhanced connectivity through the INSTC underscores India and Iran’s shared commitment to economic integration and regional stability.

Energy Cooperation

• Significant Reserves: Iran’s oil reserves are estimated at around 209 billion barrels, while natural gas reserves stand at approximately 33,988 billion cubic meters.
• Regional and Global Importance: Iran accounts for about 24% of West Asia’s total oil reserves and 12% of global reserves, marking its significance as an energy supplier.

Renewed Oil Imports:

• Past Import Levels: Before the US sanctions in 2019, Iran supplied roughly 12% of India’s crude oil, making it a major energy partner.
• Potential Resumption: With improved diplomatic ties, India may explore resuming oil imports from Iran, which would diversify India’s energy sources and bolster bilateral trade.

Iran-Oman-India Gas Pipeline:

• Project Overview: Talks continue over a long-discussed undersea gas pipeline linking Iran, Oman, and India, proposed since 1993.
• Recent Developments: Agreements in 2022 between Iran and Oman include developing oil fields and gas pipelines, with possibilities for extension to India. If implemented, this project could be a reliable energy conduit.

Military and Defence Cooperation

Iran’s Military Advancements:

• Technological Growth: Iran has advanced its military capabilities, developing short and medium-range ballistic missiles, hypersonic missiles, and armed drones.
• Opportunities for India: Iran’s expertise in drone technology, already utilized by Russia, could offer India insights as it advances its own affordable drone capabilities for defense.

Drone Technology Collaboration:

• India’s Interest: Given India’s goal of enhancing its military technology, Iran’s progress in drone production and usage could lead to collaborative efforts in affordable armed drone technology.

Diplomatic Dynamics and Strategic Autonomy

• Independent Engagement: India’s policy of “de-hyphenation” allows it to engage independently with nations holding conflicting interests, like Iran and Israel, without compromising diplomatic neutrality.
• Strategic Autonomy: India’s neutral stance on the Ukraine conflict exemplifies its ability to foster independent relations, setting a framework for expanding its diplomatic reach with Iran.
• India’s Role in Regional Stability: With the Gaza conflict ongoing, Iran has expressed interest in India’s role as a stabilizing force. This expectation underscores India’s growing influence in regional conflict resolution.

Challenges and Future Prospects

• Potential Diplomatic Friction: Iran’s Supreme Leader’s controversial remarks in September 2024, drawing parallels between Indian Muslims and the suffering in Gaza, raised concerns in India and highlighted potential diplomatic friction.
• Avoidance of Sensitive Topics: For stable relations, both nations need to prioritize diplomatic tact to maintain a collaborative spirit.
• Focus on Bilateral Goals: India and Iran must focus on shared interests in economic growth, regional stability, and technological cooperation to ensure a robust and mutually beneficial partnership.
• Growing Opportunities: Despite occasional challenges, the prospects for India-Iran cooperation in trade, energy, defense, and regional connectivity remain promising, aligning with India’s vision of enhanced global partnerships.

Conclusion

The recent India-Iran meeting at the BRICS Summit signals an intent to reinvigorate their longstanding ties. Through cooperative projects like Chabahar, energy agreements, and defence technology, both nations stand to gain from a strengthened partnership. Prioritizing constructive diplomacy and shared interests will be crucial in realizing the full potential of this relationship.