In News:

NITI Aayog released its first quarterly report, Trade Watch Quarterly (TWQ), on December 4, 2024, focusing on India's trade developments during Q1 FY2024 (April-June).

Overview:

• Purpose: The publication aims to provide a comprehensive analysis of India’s trade performance, highlighting key trends, challenges, and opportunities.
• Target: To leverage insights for evidence-based policy interventions and foster informed decision-making, contributing to sustainable growth in India’s trade.

Trade Performance Highlights (Q1 FY24):

• Total Trade: $576 billion (5.45% YoY growth).
  • Merchandise Exports: Growth was restrained due to declines in iron & steel, and pearls.
  • Imports: Driven by high-value goods, including aircraft, spacecraft, mineral fuels, and vegetable oils.
  • Services Exports: Displayed a surplus, particularly in IT services.
• Growth in Services Exports: A positive trend, rising by 10.09% YoY, particularly in IT services and business solutions.

Key Challenges for India’s Trade:

• Limited Success in China-Plus-One Strategy:Countries like Vietnam, Thailand, Malaysia have gained more from this strategy, benefitting from cheaper labor, simplified tax laws, and lower tariffs.
• CBAM (Carbon Border Adjustment Mechanism):Starting in 2026, CBAM will impose carbon taxes on imports like cement, steel, and fertilizers. India’s iron and steel industry could face significant risks due to this.
• Declining Share in Labor-Intensive Sectors:India’s global market share in labor-intensive sectors (e.g., textiles, leather) has declined despite a strong workforce.
• Geopolitical Instability (West Asia):
  • Oil price hikes could increase India’s Current Account Deficit (CAD) and fuel inflation.
  • Declining agricultural exports to markets like Iran further add to the challenges.

Strategic Recommendations for Overcoming Challenges:

• Infrastructure Modernization:
  • Expansion of digital platforms like Trade Connect e-Platform to streamline processes and support exporters.
  • Strengthening logistics via the National Logistics Policy.
• Export Incentives:Continuation of schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) to maintain export competitiveness.
• Technological Integration:Leveraging digital trade to tap into high-growth sectors and foster innovation in trade.
• Strengthening FTAs (Free Trade Agreements):Focus on negotiating strategic FTAs with global partners (e.g., the UK and the EU) to reduce trade barriers and enhance global market access.

Geopolitical and Environmental Risks:

• U.S.-China Trade Tensions:Offers opportunities for India to diversify its supply chains, but also poses challenges in terms of overdependence on certain countries.
• Impact of CBAM:Risk to carbon-intensive Indian exports like steel and aluminium, which will face tariffs starting in 2026.

Sectoral Performance:

• Growing Sectors:
  • IT Services: India’s market share of IT services reached 10.2%, continuing to be a strong contributor.
  • Pharmaceuticals, Electrical Machinery, and Mineral Fuels: Significant contributors to export growth.
• Declining Sectors:Labor-Intensive Goods: Declines in global market share for textiles, pearls, and leather.

Pathway to $2 Trillion Exports by 2030:

• India's Export Aspirations:To achieve the target of $2 trillion in exports by 2030, India must address structural inefficiencies, diversify exports, and reduce trade barriers.
• Vision 2047:Aligning with India’s broader vision to become a developed nation, the report stresses the importance of strengthening trade, technology, and infrastructure to realize these ambitions.
• Trade's Role in Economic Growth:
  • Trade is vital to India’s economic trajectory, contributing significantly to GDP growth.
  • Through evidence-based policymaking, infrastructure modernization, and strategic global partnerships, India can achieve sustained growth in trade, leading to the realization of a Viksit Bharat (Developed India) by 2047.

In News:

Recently released, World Bank’s "International Debt Report 2024" highlights a worsening debt crisis for developing nations, with 2023 marking the highest debt servicing levels in two decades, driven by rising interest rates and economic challenges.

Key Highlights:

Rising Debt Levels:

• Total external debt of low- and middle-income countries (LMICs) reached $8.8 trillion by the end of 2023, an 8% increase since 2020.
• For IDA-eligible countries (those receiving concessional loans from the World Bank), external debt rose by 18%, reaching $1.1 trillion.

Debt Servicing Costs:

• Developing nations paid a record $1.4 trillion in debt servicing costs (principal and interest) in 2023.
• Interest payments surged by 33%, totaling $406 billion, putting immense pressure on national budgets, especially in critical sectors like health, education, and environmental sustainability.

Interest Rate Increases:

• Interest rates on loans from official creditors doubled to 4% in 2023.
• Rates from private creditors rose to 6%, the highest in 15 years, exacerbating the financial burden on developing countries.

Impact on IDA-Eligible Countries:

• IDA countries faced severe financial strain, paying $96.2 billion in debt servicing, including $34.6 billion in record-high interest costs (four times higher than a decade ago).
• On average, 6% of their export earnings were allocated to debt payments, with some countries dedicating up to 38%.

Role of Creditors:

• Private creditors reduced lending, leading to more debt-servicing payments than new loans.
• In contrast, multilateral lenders like the World Bank provided additional support, with the World Bank contributing $28.1 billion.
• Multilateral institutions have emerged as crucial support systems, becoming "lenders of last resort" for poor economies.

Debt Data Transparency:

• Efforts to improve debt transparency led to nearly 70% of IDA-eligible economies publishing accessible public-debt data in 2023, a 20-point increase since 2020.
• Accurate debt data can reduce corruption and promote sustainable investment.

Global Financial Reforms:

• There is a growing call for global financial reforms to address the systemic challenges of developing nations facing rising debt burdens.
• Proposed measures include increased concessional financing, improved restructuring mechanisms, and the establishment of a Global Debt Authority for better debt management.

Impact on Climate and Development Goals:

• Debt servicing has become a larger financial burden than climate initiatives in many countries, with developing nations spending more on debt servicing than climate goals (2.4% of GDP vs. 2.1% for climate investments).
• To meet climate commitments under the Paris Agreement, climate investments would need to rise to 6.9% of GDP by 2030.

Debt Relief Initiatives:

• Programs like the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) provide debt relief to the world’s poorest nations, helping them meet Sustainable Development Goals (SDGs).
• For instance, Somalia saved $4.5 billion in debt service after completing the HIPC program in December 2023.

Global Sovereign Debt Roundtable (GSDR):

• The GSDR brings together debtor nations and creditors (both official and private) to improve debt sustainability and address restructuring challenges.
• Co-chaired by the IMF, World Bank, and G20, the forum aims to find coordinated solutions for sovereign debt issues.

In News:

The Indian government is actively promoting the creation of digital identities for farmers through the KisanPehchaan Patra (Farmer ID). The initiative is an essential part of the Digital Agriculture Mission under the AgriStack initiative.

Key Details:

Objective:

• The main goal is to provide digital IDs linked to Aadhaar for farmers, capturing comprehensive agricultural data including land records, crop information, and ownership details.
• These digital identities are designed to enhance farmers' access to government schemes and digital agriculture services.

Farmer ID Creation Timeline:

• The government plans to create digital IDs for 11 crore farmers in phases:
  • 6 crore farmers in FY 2024-25.
  • 3 crore farmers in FY 2025-26.
  • 2 crore farmers in FY 2026-27.

AgriStack Initiative:

• The AgriStack initiative aims to build a Digital Public Infrastructure (DPI) for the agriculture sector, which includes:
  • Farmers' Registry.
  • Geo-referenced village maps.
  • Crop Sown Registry.

Implementation Strategy:

• Camp-mode approach: States have been instructed to organize field-level camps to ensure faster and inclusive registration of farmers.
• Financial Incentives:
  • States will receive ?15,000 per camp for organizing these camps.
  • Additionally, ?10 per Farmer ID issued.
  • Funding is provided through the Pradhan Mantri KisanSamman Nidhi (PM-Kisan) scheme.

Benefits of Digital Farmer ID:

• Targeted Delivery of Benefits: Ensures subsidies and benefits reach legitimate farmers and eliminates duplication.
• Precision Agriculture: Supports data-driven policies for better crop planning, insurance, and market linkages.
• Financial Inclusion: Facilitates easy access to credit, loans, and crop insurance, empowering farmers financially.
• Better Monitoring: Helps in tracking the actual implementation of schemes and ensures that only eligible farmers benefit.

Progress in States:

• Advanced States: Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh have made significant progress in issuing digital Farmer IDs.
• Testing Phase: States like Assam, Chhattisgarh, and Odisha are still in the field-testing phase.
• Special Assistance Scheme: The Finance Ministry allocated ?5,000 crore in August 2024 to assist states in creating the Farmers' Registry, with funds available until March 2025.

Linkage with Land Records and Crop Data:

• The Farmer ID integrates with state land records and crop data, creating a dynamic and accurate database known as the Farmer’s Registry.
• This data helps in the development of better agricultural policies and decision-making.

Digital Agriculture Mission:

• The government approved a substantial outlay of ?2,817 crore for the Digital Agriculture Mission, which is intended to modernize agricultural practices and build robust digital infrastructure.
• The mission also includes the launch of the Digital Crop Estimation Survey (DGCES), which will help in crop estimation and better resource allocation.

In News:

• India is working on a national policy to enhance female labour force participation (FLFP), focusing on creating a supportive care economy structure.
• The policy is being developed by an inter-ministerial team involving the Ministries of Skill Development, Labour, Rural Development, and Women and Child Development.
• Goal: To reduce barriers for women, especially related to caregiving responsibilities, and increase their participation in the workforce.

Key Focus Areas:

• Care Economy: Involves both paid and unpaid caregiving services, such as childcare, eldercare, domestic work, and health services.
• The policy aims to formalize care work, addressing its undervaluation and encouraging women's workforce participation.
• Proposes a core skilling package for caregivers, particularly for childcare in rural and informal sectors.
• Childcare Facilities: Targeting women working under schemes like MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme).

Current Challenges:

• Post-marriage employment drop: Women face a significant decline in workforce participation after marriage, often due to caregiving roles.
• In India, 53% of women are outside the labour force, mostly due to unpaid domestic work, unlike only 1.1% of men.
• The gender divide in caregiving is stark: Women spend over 5 hours daily on unpaid domestic work (81% of females), compared to 12.4% of males.

Key Initiatives:

• Palna Scheme: Provides daycare through Anganwadi-cum-Crèche facilities for working parents, benefiting children aged 6 months to 6 years. 1,000 crèches are operational.
• Women’s Employment Data:
  • In rural India, 36.6% of women participate in the workforce, compared to 23.8% in urban areas.
  • Post-marriage, female employment drops by 12 percentage points, even without children.
• Improving Female Labour Force Participation (FLFP): Key to India's growth, as matching women’s workforce participation with men could boost GDP by 27% (IMF).

Barriers to Women’s Workforce Inclusion:

• Unpaid Care Work: Women's disproportionate share of household duties limits paid employment opportunities.
• Cultural Norms: Gender expectations restrict women’s access to employment, especially in rural areas.
• Educational Barriers: Limited access to education for girls restricts skill development, lowering job prospects.
• Health & Safety Issues: Health challenges and safety concerns at workplaces hinder women's workforce participation.
• Lack of Supportive Policies: Absence of parental leave and flexible work arrangements for women, especially in the informal sector.

Government Initiatives for Women’s Employment:

• BetiBachaoBetiPadhao: Promotes girl child education and empowerment.
• National Education Policy (NEP): Ensures gender equity in education.
• Maternity Benefit (Amendment) Act, 2017: Extends paid maternity leave to 26 weeks and mandates crèche facilities in large establishments.
• Labour Codes (2019-2020): Codifies labor laws to provide a framework for improving women’s workplace safety and employment opportunities.

Global Examples & Inspiration:

• Japan’s Womenomics: Aimed at increasing female participation, Japan's womenomics reforms have grown women’s labour force participation from 64.9% to 75.2% (2013-2023).
• Flexible Work Models: Countries like Netherlands encourage part-time and remote work, offering flexibility to manage work-life balance.
• Sweden’s Investment in ECCE: Investing 1% of GDP in Early Childhood Care and Education (ECCE) has significantly reduced women’s workforce exclusion.

Way Forward:

• National Women’s Urban Employment Guarantee Act (WUEGA): Promotes gender-balanced work environments and childcare facilities at work sites.
• Flexible Work Options: Encouraging remote work, parental leave, and childcare support will empower more women to balance caregiving and employment.
• Investment in the Care Economy: To reduce the care burden on women, substantial investment in ECCE and related sectors is essential to increase women’s participation and economic independence.

In News:

Government of India and ADB sign $98 million loan to promote plant health management in India’s horticulture.

Key Highlights:

$98 Million Loan Agreement with ADB:

• India and the Asian Development Bank (ADB) signed a $98 million loan to enhance horticulture productivity and resilience.
• Objective: Improve farmers' access to certified, disease-free planting materials, which will increase crop yield, quality, and climate resilience.
• Focus Areas: The project aligns with India’s Atmanirbhar Clean Plant Programme (CPP), aiming to strengthen plant health management in horticulture.

Atmanirbhar Clean Plant Programme (CPP):

• Implemented under MIDH: The Clean Plant Programme is part of the Mission for Integrated Development of Horticulture (MIDH).
• Goal: To provide virus-free, high-quality planting materials to farmers, boosting horticultural crop yields and promoting climate-resilient varieties.
• Implementation Period: 2024-2030, with 50% financial support from ADB.
• Key Components:
  • Establishment of 9 Clean Plant Centers (CPCs) with state-of-the-art diagnostic, therapeutic, and tissue culture laboratories.
  • Certification Framework: Developing a regulatory framework under the Seeds Act 1966 to certify clean plants.
  • Support to Nurseries: Infrastructure development for large-scale nurseries.
• Significance: The programme strengthens India's self-reliance in horticulture and enhances adaptability to climate change impacts.

Mission for Integrated Development of Horticulture (MIDH):

• Nodal Ministry: Ministry of Agriculture and Farmers Welfare.
• Focus: Holistic development of the horticulture sector, including fruits, vegetables, mushrooms, spices, and more.
• Funding Pattern:
  • General States: 60% by Government of India (GoI), 40% by State Governments.
  • North-Eastern and Himalayan States: 90% by GoI.

Horticulture Sector at a Glance:

• Contribution to Agricultural GDP: Accounts for 33% of the gross value.
• Land Coverage: Occupies 18% of agricultural land in India.
• Global Standing: India is the second-largest producer of fruits and vegetables globally.
• Surpassing Food Grains: Horticulture production exceeds food grain production, occupying much less land (25.66 million hectares vs. 127.6 million hectares for food grains).

Key Benefits of the CPP:

• Climate Resilience: Promotes climate-resilient plant varieties and helps farmers adapt to climate change.
• Innovation: Encourages the use of advanced testing techniques and builds institutional capacity.
• Long-term Impact: Expected to improve sustainability, productivity, and the economic well-being of farmers.

Additional Horticulture Initiatives:

• CHAMAN (Horticulture Assessment using Geo-informatics): A programme to estimate area and production of horticultural crops using scientific methods.
• Kisan Rail Services: Facilitates transportation of perishable horticultural products like fruits and vegetables.
• Capital Investment Subsidy Scheme: By the National Horticulture Board to support the sector’s growth.

In News:

Centre clears scheme for development of 40 tourist destinations across 23 States at a cost of ?3,295 crore.

Key Details:

• Focus Areas: The scheme encourages the development of lesser-known destinations such as Bateshwar (Uttar Pradesh), Ponda (Goa), Gandikota (Andhra Pradesh), and Porbandar (Gujarat) to reduce overcrowding at popular sites.
• Implementation Timeline: Projects must be completed within two years, with funding released in stages until March 2026.
• Key Features:
  • Long-term interest-free loans for 50 years.
  • States responsible for project execution and maintenance, often through public-private partnerships (PPP).
  • The Ministry of Tourism will monitor progress, and 66% of the funds have already been released.
  • Emphasis on sustainability and boosting local economies by creating jobs through tourism.
  • States must provide land at no cost and ensure proper infrastructure like safety, connectivity, and utilities.

Selection Criteria for Projects:

• Consultation Process: Detailed regional consultations led to the selection of 40 projects from 87 proposals received by the Ministry of Tourism. West Bengal was the only state not submitting proposals.
• Evaluation Criteria: Projects were evaluated based on:
  • Connectivity, tourism potential, and ecosystem.
  • Financial viability and sustainability.
  • Impact on local economy and job creation.
• Funding Pattern:
  • A maximum of ?100 crore for each project, with higher funding considered for exceptional projects.
  • Total funding capped at ?250 crore per state, allocated on a first-come, first-served basis.

Importance of the Scheme:

• Economic Growth & Employment: Projects are designed to stimulate local economies, create employment, and promote sustainable tourism.
• Global Branding: The scheme aims to brand and market tourist destinations on a global scale.
• Tourism Infrastructure Growth: It aims to improve the entire tourism value chain, including transportation, accommodation, activities, and services.

Tourism Sector Overview:

• Current Status:
  • India ranks 39th among 119 countries in the Travel and Tourism Development Index (TTDI) 2024.
  • Foreign Tourist Arrivals (FTAs) increased by 47.9% in 2023, with 9.52 million tourists.
  • Tourism contributed 5% to India’s GDP in 2022-23 and created 76.17 million direct and indirect jobs.
  • India earned ?2.3 lakh crore in foreign exchange in 2023 through tourism.
  • Projected revenue from tourism to exceed $59 billion by 2028.
• Initiatives for Promotion:
  • Swadesh Darshan Scheme: To develop theme-based circuits.
  • Dekho Apna Desh Initiative (2020): Promotes domestic tourism.
  • PRASHAD & HRIDAY Schemes: Focus on pilgrimage and heritage city development.

MGNREGA Job Card Deletions Issue:

• Context: A significant surge in deletions of job cards under MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) raised concerns over transparency and workers’ rights.
• Reasons for Deletion:
  • Permanent migration, duplicate cards, forged documents, and refusal to work.
  • Aadhaar-based payment system (ABPS) implementation led to deletions for non-linked cards.
• Implications:
  • Violation of workers’ legal right to employment, especially when deletions were made without due process.
  • The "Not willing to work" designation undermines livelihood opportunities, especially in high unemployment rural areas.
• Recommendations for Reform:
  • Strengthening verification processes and ensuring deletions follow due procedure.
  • Empowering Gram Sabhas to review and approve deletions.
  • Regular audits and better grievance redressal mechanisms.

Other Government Initiatives in Tourism:

• National Mission on Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD): For holistic and sustainable development of pilgrimage tourism.
• Incredible India & E-Visa Initiatives: To attract more foreign tourists.
• Regional Connectivity Scheme (UDAN): Enhances air connectivity to remote tourist destinations.
• National Heritage City Development and Augmentation Yojana (HRIDAY): Preserves and rejuvenates heritage sites.

In News:

• The 13th National Seed Congress (NSC), organized by the Ministry of Agriculture & Farmers' Welfare, concluded with significant discussions and outcomes focused on advancing India's seed sector.
• The theme for this year's congress, held in Varanasi, was "Innovating for a Sustainable Seed Ecosystem."

Key Highlights:

• Focus Areas:
  • Seed Technologies and Biofortification: Emphasis on high-nutrition seeds like iron and zinc-enriched rice and Vitamin A-rich crops to combat malnutrition.
  • Climate-Resilient Agriculture: Promoting practices like Direct Seeded Rice (DSR) and the development of stress-tolerant seed varieties to withstand climate change.
• Challenges in India’s Seed Ecosystem:
  • Seed Replacement Rate (SRR): SRR in India is around 15-20%, with 100% for hybrid seeds, pointing to the need for higher adoption of certified seeds.
  • Monoculture and Seed Market Monopoly: Issues like over-reliance on Bt cotton and domination by multinational companies (e.g., Bayer) in seed markets.
• Government Initiatives:
  • National Seed Corporation (NSC): Produces foundation and certified seeds for over 600 varieties.
  • Seed Village Programme (Beej Gram Yojana): Focus on improving the quality of farm-saved seeds.
  • National Seed Reserve: Ensures seed availability during climatic disruptions.
• Policy Discussions:
  • Proposed Seeds Bill: A new bill to regulate seed quality and promote sustainable practices.
  • Public-Private Partnerships: Strengthening collaborations to improve seed production, accessibility, and quality.
• Outcomes:
  • Biofortified Seeds: Increased development and distribution of nutrient-rich seeds.
  • Climate-Resilient Seed Systems: Enhanced focus on developing crops that can withstand climate challenges.
  • Public-Private Partnerships: Strengthening collaborations in seed technology and policy reform.

In News:

A new report from the International Labour Organization (ILO) reveals that wage inequality has decreased in about two-thirds of all countries since 2000. Despite this positive trend, significant wage differentials persist worldwide.

Global Wage Inequality Trends:

• Wage inequality has decreased in about two-thirds of all countries since 2000.
• Average Annual Decrease in Wage Inequality:
  • Ranges from 0.5 to 1.7% globally, depending on the measure used.
  • More significant reductions have been observed in low-income countries, where the decrease has ranged from 3.2 to 9.6% over the past two decades.
• Wealthier Countries: Wage inequality has decreased at a slower pace:
  • Upper-middle-income countries: annual decrease of 0.3 to 1.3%.
  • High-income countries: annual decrease of 0.3 to 0.7%.

Global Real Wage Growth:

• Global real wages grew by 1.8% in 2023, with projections reaching 2.7% growth in 2024 (highest increase in over 15 years).
• This marks a recovery from the negative global wage growth of -0.9% in 2022 due to high inflation rates.

Regional Wage Growth:

• Emerging Economies: Saw stronger wage growth than advanced economies.
  • Emerging G20 economies: 1.8% growth in 2022 and 6.0% growth in 2023.
• Advanced Economies: Faced real wage declines.
  • G20 advanced economies: Declined by -2.8% in 2022 and -0.5% in 2023.
• Fastest Wage Growth: Observed in regions like Asia-Pacific, Central and Western Asia, and Eastern Europe.

Wage Inequality Persistence:

• Income Distribution: The lowest-paid 10% of workers earn just 0.5% of the global wage bill, while the highest-paid 10% earn nearly 38%.
• Wage Inequality in Low-Income Countries: Particularly high, with nearly 22% of wage workers classified as low-paid.
• Women and Informal Economy Workers: More likely to be among the lowest-paid workers, underscoring the need for targeted actions to close wage and employment gaps.

Non-Wage Workers:

• Globally, one in every three workers is a non-wage worker.
• In low- and middle-income countries, many workers are self-employed in the informal economy, which skews overall income inequality measures.
• Income inequality in these regions is higher when including self-employed workers, especially those in informal employment.

Policy Recommendations:

• Targeted Policies: To reduce wage inequality, countries need stronger wage policies and structural support for equitable growth.
• Focus Areas:
  • Promote productivity and decent work.
  • Formalization of the informal economy to help reduce income inequality.
• Inclusive Growth: The ILO emphasizes that national strategies should aim for inclusive economic growth to achieve fair wages and reduce wage gaps.

Key ILO recommendations include: 

• Setting wages through social dialogue: wages should be set and adjusted through collective bargaining or agreed minimum wage systems involving governments, workers and employers.
• Taking an informed approach: wage-setting should take into account both the needs of workers and their families and economic factors.
• Promoting equality, and equal opportunity of treatment and outcomes: wage policies should support gender equality, equity and non-discrimination.
• Using strong data: decisions should be based on reliable data and statistics.
• Addressing root causes of low pay: national policies should reflect each country’s specific context and address the causes of low pay such as informality, low productivity and the under-valuing of jobs in sectors such as the care economy.

In News:

The gig economy market is expected to grow at a compounded annual growth rate (CAGR) of 17 per cent to reach a gross volume of $455 billion by 2024, according to a white paper by the Forum for Progressive Gig Workers.

Key Sectors Supported by Gig Workers:

• E-commerce: Gig workers play a crucial role in driving growth in the e-commerce sector.
• Transportation and Delivery Services: These sectors are heavily dependent on gig workers for their operations and services.

Impact on Employment:

• Job Creation: The gig economy has the potential to create a significant number of jobs, especially in tier 2 and 3 cities, which are emerging as new growth hubs.
• Alternate Revenue Streams: Gig work provides diverse income opportunities for workers, especially for women, offering them a flexible mode of earning.

Contribution to GDP:

• The gig economy’s contribution is expected to add 1.25% to India’s GDP over time, highlighting its growing economic importance.

Technological Integration and Future Prospects:

• AI and Digital Innovation: Future growth is expected to be driven by the integration of artificial intelligence (AI), predictive analytics, and digital innovation, fostering sustainable and inclusive job opportunities.

Social and Economic Benefits:

• Women's Workforce Participation: The gig economy provides women with more earning opportunities and helps integrate them into the workforce.
• Welfare Initiatives: Platforms supporting gig workers are increasingly focusing on welfare initiatives, improving the overall working conditions in the sector.

Challenges and Opportunities:

• Challenges: The evolving dynamics between large companies and gig workers pose challenges in terms of worker rights and fair compensation.
• Opportunities: The growth of the gig economy presents opportunities for companies to innovate and create inclusive work environments, especially for underserved communities.

Future Developments:

• Formal Report: The Forum for Progressive Gig Workers plans to collaborate with global organizations to release a formal report with deeper insights and actionable recommendations for the future of gig work

In News:

The BioE3 Policy outlines guidelines and principles for enabling mechanisms for ‘Fostering High Performance Biomanufacturing’ in the country across diverse sectors. 

Key Highlights:

Primary Objective:

• Set a framework for the adoption of advanced technologies and innovative research to promote biomanufacturing in India.
• Focus on enhancing efficiency, sustainability, and quality in biomanufacturing.

Alignment with National Goals:

• Supports India’s vision of Green Growth (Union Budget 2023-24) and Lifestyle for Environment (LiFE), promoting sustainability.
• Aligns with India’s goal of achieving a Net-Zero carbon economy.
• Supports the Biomanufacturing and Biofoundry initiative announced in the Interim Budget 2024-25.

Key Objectives:

• Revolutionize biomanufacturing for better product quality and environmental sustainability.
• Accelerate the development and commercialization of bio-based, high-value products.
• Foster high-performance biomanufacturing across diverse sectors.

Achievements of Indian Bioeconomy (2014-2023):

• Contribution to GDP: Bioeconomy contributes 4.25% to India’s GDP of $3.55 trillion (as of Dec 2023).
• Growth of Bioeconomy: From $10 billion in 2014 to $151 billion in 2023, surpassing 2025 target.
• Increase in Biotech Startups: From 50 startups in 2014 to 8,531 startups in 2023.

Implementation Strategy:

• Establish BioEnablers including Bio-AI Intelligence Hubs, Biofoundries, and Biomanufacturing Hubs across India.
• Bio-AI Intelligence Hubs will support research and innovation using data-driven approaches and AI to develop technologies for bio-based products.
• Biofoundries and Biomanufacturing Hubs will provide infrastructure to scale up bio-based technology for commercial applications.

Focus on Human Resource Development:

• Bio-Enablers will offer training and internships to build a skilled workforce with interdisciplinary and technical skills required for biomanufacturing.

Sectoral Focus Areas:

• Based on consultations, six thematic sectors of national importance have been identified for implementation:
  • Bio-based chemicals and enzymes
  • Functional foods and smart proteins
  • Precision biotherapeutics
  • Climate-resilient agriculture
  • Carbon capture and utilization
  • Futuristic marine and space research
• Sectoral Expert Committees are addressing challenges and gaps identified for each of these sectors.

Government Support:

• The DBT-BIRAC (Department of Biotechnology and Biotechnology Industry Research Assistance Council) has called for proposals to establish Biofoundries and Biomanufacturing Hubs in academia and industry.
• These hubs will support innovation and commercialization of biomanufacturing technologies.

In News:

The Union Cabinet approved the launching of the National Mission on Natural Farming (NMNF) as a standalone Centrally Sponsored Scheme under the Ministry of Agriculture & Farmers' Welfare.

Key Highlights

Objective & Focus:

• Launch of NMNF by the Union Cabinet to promote chemical-free farming in India.
• Aim to improve soil health, reduce input costs, and produce nutritious food.
• Support the shift to natural farming (NF), emphasizing local knowledge and agro-ecological principles.

Financial Allocation:

• Total Outlay: ?2481 crore (Government of India share ?1584 crore, State share ?897 crore) until FY 2025-26.

Key Features of NMNF:

• Coverage: Targeting 15,000 clusters in Gram Panchayats, covering 7.5 lakh hectares and impacting 1 crore farmers.
• Bio-Input Resource Centres (BRCs): 10,000 BRCs to supply ready-to-use natural farming inputs.
• Krishi Vigyan Kendras (KVKs) and Agricultural Universities (AUs): Establishment of 2,000 model demonstration farms for hands-on training in natural farming techniques.
• Farmer Training: 18.75 lakh farmers to be trained in NF practices such as preparation of organic inputs like Jeevamrit and Beejamrit.
• Krishi Sakhis/CRPs: Deployment of 30,000 workers for farmer mobilization and awareness.

Implementation Strategy:

• Farmer Certification System: Providing easy, simple certification for marketing natural farming produce with dedicated branding.
• Monitoring: Real-time, geo-tagged monitoring of implementation through an online portal.
• Convergence with other government schemes and organizations for market linkages and support.

Natural Farming Practices:

• Zero Budget Natural Farming (ZBNF): Promote sustainable farming by using local livestock and diverse crop systems.
• Benefits: Reduce dependence on external inputs like chemical fertilizers and pesticides, rejuvenate soil quality, and increase resilience to climate risks (e.g., drought, floods).
• Encourage biodiversity, and improve soil carbon content and water-use efficiency.

Targeted Areas and Farmer Support:

• Focus on areas where NF practices are already being followed or where farmer producer organizations (FPOs) or self-help groups (SHGs) are active.
• Training through model demonstration farms will focus on practical, location-specific NF techniques tailored to regional agro-ecologies.

Impact on Agriculture and Environment:

• Environmental Impact: Encourages sustainable farming by reducing chemical exposure, improving soil health, and promoting climate resilience.
• Farmer Well-being: By reducing input costs and promoting nutritious food, it aims to improve farmer incomes and family health.
• Contributing to the long-term health of the environment, ensuring a healthy Mother Earth for future generations.

Challenges and Concerns:

• Soil Nutrient Compromise: Concerns that some crops, like rice, might require chemical fertilizers (e.g., NPK) for optimal growth, which may not be sufficiently replaced by organic manure alone.
• The shift to natural farming requires significant awareness and training to ensure sustainable and productive yields.

Institutional Framework:

• Ministry of Agriculture and Farmers’ Welfare is the implementing body.
• Collaboration with KVKs, AUs, and farmer organizations ensures grassroots level support and knowledge dissemination.

In News:

• India reaffirms its commitment to inclusive growth and strengthening its intellectual property (IP) ecosystem.The signing of the treaty comes after nearly two decades of negotiations.

Key Highlights:

Purpose of the DLT:

• Aims to harmonize industrial design protection frameworks across multiple jurisdictions.
• Improves efficiency and accessibility of design registration processes.

Key Features of the DLT:

• Grace Period: A 12-month grace period after the first disclosure of the design, ensuring its validity for registration.
• Flexibility for Applicants: Provides relief measures such as relaxed deadlines, reinstatement of lost rights, and flexibility in adding priority claims.
• Simplified Processes: Includes simplified procedures for design renewals, assignment, and license recording.
• E-Filing Systems: Promotes the adoption of electronic filing systems and exchange of priority documents.

Benefits of DLT:

• Empowering SMEs and Startups: Helps small and medium-sized enterprises (SMEs) and startups protect designs globally, enhancing competitiveness and market growth.
• Reduced Administrative Burden: Standardizes procedures, making the design protection process less complex, more predictable, and affordable.
• Support for Developing Countries: Offers technical assistance for implementation in developing and least-developed countries.

Significance for India:

• India’s rich heritage of design and craftsmanship underscores the importance of design protection for sustainable economic growth.
• Design registrations in India have surged, with a 120% increase in domestic filings over the last two years.

Supporting Programs:

• The treaty’s provisions align with India’s initiatives like Startup India and the Startups Intellectual Property Protection (SIPP) Scheme to boost the protection and commercialization of designs for Indian innovators.

Broader Impact:

• DLT aims to integrate design protection with traditional knowledge and cultural expressions, further enhancing protection for India’s diverse creative sectors.

About WIPO:

• The World Intellectual Property Organization (WIPO), headquartered in Geneva, Switzerland, is a specialized UN agency established in 1967, promoting IP rights globally.
• India is a member of WIPO, which has 193 member countries.

Overview of Intellectual Property (IP):

• IP includes creations like inventions, industrial designs, literary and artistic works, symbols, and more, which are used in commerce.
• IP rights protect creators, allowing them to benefit from their work when commercially exploited.

In News:

The Department of Animal Husbandry and Dairying (DAHD) declared the winners of the National Gopal Ratna Awards(NGRA); one of the highest National Awards in the field of livestock and dairy sector for the year 2024.

About the National Gopal Ratna Awards (NGRA):

• Purpose:Recognize and encourage individuals, AI technicians, dairy cooperatives, and farmer organizations in the livestock and dairy sector.
• Categories:
  • Best Dairy Farmer (Indigenous Cattle/Buffalo Breeds)
  • Best Artificial Insemination Technician (AIT)
  • Best Dairy Cooperative/Milk Producer Company (MPC)/Dairy Farmer Producer Organization

8915. Addition (2024):Special awards for North Eastern Region (NER) to promote dairy development in the area, with winners in all three categories.
10065061. and Prizes:

• Rs. 5 lakhs for 1st rank, Rs. 3 lakhs for 2nd rank, Rs. 2 lakhs for 3rd rank, and Rs. 2 lakhs for Special NER Award in the categories of Best Dairy Farmer and Best Dairy Cooperative/FPO/MPCs.
• For Best AIT, winners will receive a Certificate of Merit and a memento.

3794461255794. Process:Winners selected from 2,574 applications via an online portal (https://awards.gov.in).

• The livestock sector is crucial for India's economy, contributing significantly to agriculture and providing livelihood, especially for small and marginal farmers, women, and landless laborers.
• Indigenous breeds have immense genetic potential, but their population and performance have been declining. To address this, the Rashtriya Gokul Mission was launched under the National Programme for Bovine Breeding and Dairy Development in 2014 to conserve and develop indigenous bovine breeds.

National Milk Day

• It is celebrated annually on November 26 in India to honor the significant contributions of milk and the dairy industry to the country's development.
• The day commemorates the birth anniversary of Dr VergheseKurien, the "Father of the White Revolution" in India, who played a pivotal role in transforming India into the largest producer of milk globally.
• National Milk Day was first celebrated on November 26, 2014, after the Indian Dairy Association (IDA), along with various dairy institutions across the country.

In News:

Nepal starts exporting energy to Bangladesh with Indian grid support.

Significance of the Power Transfer:

• Energy Cooperation:
  • A major step in regional energy cooperation among Nepal, India, and Bangladesh.
  • Strengthens sub-regional connectivity in the power sector.
• Nepal’s Hydropower Potential:
  • Nepal, a Himalayan nation, possesses untapped hydropower resources, and this agreement opens the door for future cross-border electricity cooperation.
  • Nepal’s energy exports are a green energy initiative, supporting sustainable industrial growth in Bangladesh and regional prosperity.
• Electricity Crisis in Bangladesh:
  • Bangladesh is facing an ongoing electricity shortage, worsened by the suspension of power supply from Adani’s Godda plant and the maintenance of the Payra thermal unit.
  • The addition of 40 MW of Nepalese hydroelectric power aims to alleviate the energy shortfall in Bangladesh.

Tripartite Power Sales Agreement:

• Agreement Details:
  • The agreement for power transfer was signed in October 2023 between:
    • NTPC Vidyut Vyapar Nigam (NVVN) (India)
    • Nepal Electricity Authority (NEA) (Nepal)
    • Bangladesh Power Development Board (BPDB) (Bangladesh).
  • Power Export: Nepal has started exporting 40 MW of electricity, which marks a significant milestone in trilateral power cooperation.

Key Entities Involved:

• NTPC Vidyut Vyapar Nigam (NVVN):
  • A wholly owned subsidiary of NTPC Ltd. (National Thermal Power Corporation), created to facilitate power trading.
  • NVVN is diversifying into renewables, e-mobility, and green fuel solutions.
• NTPC Ltd.:
  • A Maharatna PSU under India’s Ministry of Power, established to develop power resources in India.
  • Involved in large-scale power generation and clean energy initiatives

In News:

India continues to make significant strides in intellectual property filings, ranking among the top 10 countries for patents, trademarks, and industrial designs.

India’s Performance in Global Intellectual Property (IP) Filings:

• Overall Growth: India continues to make significant strides in intellectual property filings, ranking among the top 10 countries for patents, trademarks, and industrial designs.
• Patent Applications: India recorded a +15.7% growth in patent applications in 2023, marking its fifth consecutive year of double-digit growth, placing it among the top contributors to global patent filings.
• Trademark Filings: India ranks 4th globally in trademark filings, reflecting the country’s growing focus on brand protection.
• Industrial Designs: India saw a 36.4% surge in industrial design applications, emphasizing creativity and design innovation.

India’s Global Patent Ranking:

• Global Rank: India ranks 6th globally for patent applications with 64,480 filings in 2023.
• Resident Filings: For the first time, over half (55.2%) of India’s patent applications were filed by residents, highlighting growing domestic innovation.
• Patent Grants: A 149.4% increase in granted patents in 2023 underscores the efficiency of India’s patent office and the rising quality of applications.

Key Metrics and Trends in Patents:

• Patent-to-GDP Ratio: India’s patent-to-GDP ratio grew from 144 in 2013 to 381 in 2023, signaling a knowledge-driven economy.
• Sectoral Diversity: India’s patent filings span diverse sectors, including agriculture, pharmaceuticals, IT, and renewable energy, showcasing the broad scope of innovation.

Surge in Industrial Design Applications:

• Growth Rate: A 36.4% increase in industrial design filings in 2023, reflecting a shift towards value-added industries focused on product design and functionality.
• Leading Sectors: Key sectors driving design filings include textiles, accessories, tools, machines, and health & cosmetics.
• Manufacturing Transformation: This growth signals India’s transition from basic manufacturing to a more design-driven, innovation-focused ecosystem.

Trademark Filings:

• Global Rank: India ranks 4th globally in trademark filings with a 6.1% increase over the previous year.
• Resident Filings: Nearly 90% of trademark filings in India were made by domestic entities, highlighting a strong focus on brand protection.
• Active Trademarks: India now has over 3.2 million active trademarks, the second-largest in the world, reflecting a competitive and dynamic domestic marketplace.

Sectoral Trends in Trademarks:

• Leading Sectors: Health (21.9%), agriculture (15.3%), and clothing (12.8%) were the top sectors for trademark filings, underscoring India’s leadership in pharmaceuticals, food production, and fashion.
• Global Expansion: The rise in trademark filings also mirrors the increasing global demand for Indian products and services.

India’s Contribution to Global IP Growth:

• Global Trend: In 2023, a record 3.55 million patent applications were filed worldwide, with India contributing significantly to this surge, particularly in emerging markets.
• Local Innovation Focus: India’s rising resident filings in patents and trademarks point to a shift towards local innovation, with more Indian businesses and startups protecting their intellectual property.

Government Initiatives Fueling IP Growth:

• National IPR Policy: Launched in 2016, this policy fosters innovation, improves IP awareness, and supports domestic IP development.
  • Key Measures: Modernization of IP offices, improvements in procedural requirements, and IP education initiatives.
• Atmanirbhar Bharat: Government campaigns like Atmanirbhar Bharat have supported local innovation and made Indian businesses more IP-conscious.
• Startup India & Atal Innovation Mission: These initiatives have further strengthened India’s innovation ecosystem by promoting entrepreneurship, research, and technological advancement.
  • Startup India: Over 1,49,000 recognized startups as of September 2024.
  • Atal Innovation Mission: More than 10,000 Atal Tinkering Labs in schools and 3,500+ startups incubated across India.

In News:

A Semiconductor Plant has been set up in Morigaon, Assam, projected for completion by mid-2025.

Overview of the Morigaon Semiconductor Plant:

• Location: Morigaon, Assam.
• Investor: Tata Semiconductor Assembly and Test Pvt Ltd (TSAT).
• Investment: ?27,000 crore.
• Production Capacity: Expected to produce 48 million semiconductor chips daily.
• Technology: Utilizes advanced packaging technologies such as flip chip and Integrated System in Package (ISIP).
• Sectors Served: Automotive, electric vehicles, telecommunications, consumer electronics.
• Completion: Projected to be completed by mid-2025.
• Job Creation: Expected to generate 15,000 direct jobs and 11,000-13,000 indirect jobs.
• Market Reach: Will serve both domestic and international markets, enhancing India's position in the global semiconductor supply chain.

India's Semiconductor Industry and Market Growth:

• Market Size (2023): Estimated at $38 billion.
• Projected Growth: Expected to grow to $109 billion by 2030.
• Government Initiatives: Several initiatives have been launched to promote domestic semiconductor manufacturing, including the India Semiconductor Mission (ISM) and the Semicon India Program.

India Semiconductor Mission (ISM):

• Objective: To build a self-reliant semiconductor ecosystem in India.
• Launched: 2021 with a financial outlay of ?76,000 crore.
• Scope: Covers semiconductor fabs, packaging, display manufacturing, Outsourced Semiconductor Assembly and Testing (OSAT), sensors, and other critical components.
• Support Schemes: Includes Modified Schemes for setting up Semiconductor and Display Fabs, as well as support for Compound Semiconductors, Silicon Photonics, and Sensors.

Key Projects in Semiconductor Industry:

• Morigaon Facility: Part of the broader government-backed initiative to enhance semiconductor production in India.
• Other Facilities: New semiconductor units by Tata Electronics (Dholera, Gujarat), CG Power (Sanand, Gujarat), and KaynesSemicon Pvt Ltd (Sanand, Gujarat).
• Modernization: The Semi-Conductor Laboratory in Mohali is being modernized, alongside initiatives like the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (PLI) Scheme.

Strategic Importance of Semiconductors:

• Role in Modern Electronics: Semiconductors are critical for a wide range of devices like computers, smartphones, solar cells, LEDs, and integrated circuits.
• Global Dependence: The global semiconductor market has significant reliance on suppliers like Taiwan (44%), China (28%), and South Korea (12%).
• Global Shortage: The 2021 chip shortage highlighted the vulnerability of global supply chains, prompting efforts by countries to boost domestic semiconductor production.

Government Support for Semiconductor Manufacturing:

• Financial Incentives: The government offers fiscal support for setting up semiconductor manufacturing plants:
  • 50% of project cost support under the Semiconductor Fab Scheme and the Display Fab Scheme.
  • Support for Compound Semiconductors and Chips to Startup (C2S) initiatives.
  • Training 85,000 engineers through the C2S Programme in collaboration with academic institutions, R&D organizations, and MSMEs.

In News:

The digital euro, a central bank digital currency (CBDC) being developed by the European Central Bank (ECB), aims to revolutionize Europe’s digital payment landscape. However, while the ECB has marketed it as a convenient, free, anonymous, and reliable alternative to existing cashless options like credit cards and mobile payment apps, the true purpose of the digital euro goes beyond these simplified claims.

Key Aspects of the Digital Euro

• Direct Issuance by the ECB: Unlike traditional digital payments that rely on intermediaries like banks or payment service providers, the digital euro is issued directly by the European Central Bank. This allows for peer-to-peer transactions without the need for third-party banks or payment gateways. It can be used for offline transactions, which is a major technical innovation that sets it apart from other digital currencies.
• A Digital Version of Cash: The digital euro is essentially a digital version of legal tender (cash), providing an alternative to cash in a world increasingly dominated by digital payments. Its key feature is direct payment between users, bypassing the traditional banking system. It aims to offer the same advantages as cash, such as anonymity, but with the convenience of digital transactions.
• Cost Reduction and Micro-Payments: The digital euro promises to lower transaction costs, especially for micro-payments that are currently prohibitively expensive using conventional bank transfers or digital services like PayPal. This cost efficiency is intended to enable new business models by lowering the friction in digital transactions, thus encouraging innovation in commerce.

The ECB’s Claims vs. the Real Motivation

While the ECB portrays the digital euro as a means to make payments easier, faster, and more secure, there is an underlying political and economic agenda that goes beyond improving consumer convenience.

• Sovereignty and Competition: One of the main drivers behind the digital euro is Europe’s desire to assert its digital sovereignty. The ECB positions the digital euro as a tool to strengthen the euro’s competitiveness against non-European payment providers, particularly those from the United States like PayPal, Apple Pay, and Google Pay. The EU is concerned that foreign companies may dominate the digital payment landscape, thereby reducing Europe's ability to control its own financial systems.
  • This is a defensive measure to protect European financial interests. By creating a state-backed alternative to privately controlled digital payment systems, the EU aims to ensure that Europe does not become reliant on foreign corporations for essential services.
• Not About Citizens’ Convenience Alone: While the ECB frames the digital euro as a user-friendly solution for consumers, the real concern is about the control over digital currency. The digital euro offers a more centralized alternative compared to the decentralized nature of cryptocurrencies like Bitcoin. The ECB aims to harness the power of the state in regulating and controlling digital transactions, thus consolidating private property and ensuring the smooth functioning of Europe’s monetary policies.
• A Tool for Strengthening the Euro: The digital euro is also seen as part of Europe’s broader ambition to establish the euro as a dominant global currency. As the first fully-regulated digital currency issued by a central bank, it could position the euro to compete against other digital currencies, including the digital yuan or the U.S. dollar. The EU sees the digital euro as a way to expand its geopolitical influence by promoting its own currency as a global standard for digital payments.

In News:

In a bid to enhance India’s clout in the global merchant shipping sector, the government recently hosted a two-day global maritime conference – Sagarmanthan: The Great Oceans Dialogue.

Key Highlights:

• Purpose of the Conference:

• To enhance India's maritime influence and position India as a key player in the global maritime sector, especially in merchant shipping and maritime trade.
• To showcase India's ambitions in expanding its role in global maritime trade, governance, and collaboration.

• India's Maritime Ambitions:

• Despite being the most populous nation and one of the largest global economies, India’s maritime clout has been relatively lower than expected.
• The dialogue aims to shift global attention towards India's growing role and contributions to maritime trade and shipping.

• India's Maritime Growth:

• India contributed to 16% of global maritime growth in 2023 and is on track to become the third-largest global economy within three years.
• As India’s economic and geopolitical influence expands, maritime governance will become increasingly significant, necessitating deeper international collaborations in commerce, connectivity, and trade.

• Focus Areas of the Dialogue:

• Global Maritime Trade: India's expanding role in international shipping, trade routes, and maritime security.
• International Collaborations: Promoting deeper engagement in maritime governance and policy-making ecosystems.
• Human Well-being: Highlighting the role of maritime trade in supporting human welfare, particularly in the context of sustainable development and climate change.

• Significance for India:

• The conference serves as a platform to discuss India’s aspirations, policies, and presence in global maritime affairs.
• It is an opportunity to strengthen maritime relations and address issues of global relevance such as trade routes, shipping governance, and environmental sustainability

In News:

The Reserve Bank of India (RBI) retained the State Bank of India, HDFC Bank and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).

Overview of D-SIBs

• Definition: D-SIBs are banks that are 'Too Big to Fail' (TBTF) and their failure could significantly disrupt essential banking services, affecting the economy.
• RBI Classification: The Reserve Bank of India (RBI) has designated SBI, HDFC Bank, and ICICI Bank as D-SIBs.
• Bucketing System: These banks are classified into different buckets based on their systemic importance.

Importance of D-SIBs

• Systemic Importance: Banks are considered systemically important due to their:
  • Size
  • Cross-jurisdictional activities
  • Complexity
  • Interconnectedness with the economy
• Impact of Failure: Failure of a D-SIB could cause significant disruption in the banking system and economy, impacting services like payments, loans, etc.

Why D-SIBs are Created

• Risk of Disruption: The failure of a large bank can disrupt essential services and lead to a broader economic crisis.
• TBTF Perception: These banks are often perceived as Too Big to Fail, leading to an expectation of government support during crises. This creates moral hazard, encouraging riskier behavior.

Assessment and Selection of D-SIBs

• Two-Step Process:
  • Step 1: Selection of banks based on their size, complexity, and interconnectedness. Only banks with systemic importance are assessed (e.g., banks with assets > 2% of GDP).
  • Step 2: Calculation of systemic importance score based on a range of indicators. Banks above a certain threshold are classified as D-SIBs.
• Indicators: Size (measured by Basel III Leverage Ratio Exposure Measure), interconnectedness, substitutability, and complexity are key factors.

Bucket Allocation and Capital Requirements

• D-SIBs are assigned to five buckets based on their systemic importance score:
  • Bucket 1: Lowest capital surcharge (e.g., ICICI Bank).
  • Bucket 5: Highest capital surcharge.
• Additional Capital Requirements:
  • SBI: Additional 0.80% CET1 (Common Equity Tier 1) on Risk-Weighted Assets (RWAs).
  • HDFC Bank: Additional 0.40% CET1.
  • ICICI Bank: Additional 0.20% CET1.
  • The higher the bucket, the higher the capital surcharge.

Global Systemically Important Banks (G-SIBs)

• Global List: Identified by the Financial Stability Board (FSB) based on data from the previous year.
• 2023 G-SIB List includes banks like JP Morgan Chase, Bank of America, HSBC, etc.
• Capital Requirement for G-SIBs in India: Foreign G-SIBs with branch presence in India must meet additional CET1 requirements, proportional to their operations in India.

Key Terms

• Risk-Weighted Assets (RWAs): These are used to calculate the minimum capital a bank must hold. It accounts for the risk level of a bank’s assets.
• Common Equity Tier 1 (CET1): The highest quality of capital a bank can hold, primarily made up of common stock, to absorb losses in times of distress.

In News:

• The State Fisheries Department in Kerala launched a sea ranching project by releasing 20,000 pompano (Trachinotus blochii) fingerlings off the Vizhinjam coast as part of the artificial reef project.
• Coordinates: The fingerlings were released near artificial reef modules placed 1.5 nautical miles off the coast.
• Follow-up to Artificial Reef Project: The release of fingerlings is a follow-up to the artificial reef project aimed at replenishing marine fishery resources and promoting sustainable fishing practices.

Project Details

• Fingerling Release: The first batch of 20,000 pompano was released as part of the broader initiative to release 10 lakh fingerlings (pompano and cobia) at 10 locations along the Thiruvananthapuram coast.
• Location and Quantity: At each location, 1 lakh fingerlings will be released, where artificial reefs have already been deployed under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
• Reef Design: Artificial reefs consist of 150 reef modules (triangular, flower, and pipe-shaped) created at 42 locations off 33 fishing villages in the Thiruvananthapuram district.

Objective and Benefits

• Marine Resource Replenishment: The primary aim is to replenish marine fishery resources in the region by enhancing biodiversity through the introduction of fingerlings.
• Sustainable Fishing: The project aims to promote sustainable fishing practices by supporting fish populations and ensuring long-term fishery health.
• Attraction of Fish Species: The artificial reefs have already attracted a variety of fish species, including tuna, trevally, and mackerel, enhancing the fishing ecosystem.

Implementation and Funding

• Scheme: The project is being implemented under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), which focuses on sustainable fisheries development.
• Central Approval: The National Fisheries Development Board (NFDB) approved the ?3 crore funding for the initial phase in Thiruvananthapuram.
• Proposed Expansions:
  • Phase II: A proposal for extending the artificial reef project to 96 villages in the districts of Kollam, Alappuzha, Ernakulam, and Thrissur with an estimated cost of ?29.76 crore.
  • Phase III: A similar proposal for 96 villages in the northern districts of Malappuram, Kozhikode, Kannur, and Kasaragod with an estimated cost of ?25.82 crore.

Mission and Fingerlings Details

• Fingerlings:
  • Pompano (Trachinotus blochii) and Cobia (Rachycentron canadum) fingerlings were reared at the Ayiramthengu fish farm.
  • Each fingerling weighs between 8 to 10 grams.
  • The release aims to stock marine areas with species that will contribute to biodiversity and fisheries sustainability.

Pradhan Mantri Matsya Sampada Yojana (PMMSY)

• Launched: PMMSY is a Centrally funded scheme under the Ministry of Fisheries, Animal Husbandry, and Dairying.
• Goal: The scheme focuses on sustainable fisheries development to enhance fisheries production, boost aquaculture, and promote responsible fishing practices.
• Funding: The scheme involves both Central and State Government funding for projects related to fisheries management, infrastructure development, and resource conservation.

Mission Fingerling

• Launched: 2017 by the Union Ministry of Agriculture and Farmers’ Welfare.
• Objective: To achieve the Blue Revolution by holistically developing and managing fisheries in India.
• Production Target: The mission aimed to increase fisheries production from 10.79 MMT (2014-15) to 15 MMT by 2020-21.

In News:

• In 2023, the Organisation for Economic Co-operation and Development (OECD) revealed that Indian farmers faced the highest implicit taxation globally, amounting to USD 120 billion.
• Implicit Taxation: This taxation arises from government policies like export bans, duties, and price controls, aimed at lowering food prices for consumers but reducing the income of farmers.
• Export Restrictions: Key commodities affected include rice, sugar, onions, and de-oiled rice bran.

Impact on Indian Farmers

• Market Price Support (MPS):
  • Negative MPS: In 2023, Indian agricultural policies resulted in a negative MPS of USD 110 billion.
  • Farmers received lower prices than international market rates due to export bans and trade restrictions, impacting their income.
• Budgetary Support: Despite government subsidies and the Minimum Support Price (MSP) worth USD 10 billion, negative MPS outweighed positive support, leading to an overall loss for farmers.
• Farmer’s Share in Global Negative Support:
  • India’s share of global negative price support in 2023 was 62.5%, a significant increase from 61% in 2000-02.

Global Agricultural Policy Trends

• Global Support: Total support for agriculture across 54 countries averaged USD 842 billion annually (2021-2023). However, there was a decline in support in 2022-23 from the pandemic-era peak.
• Challenges:
  • Geopolitical Tensions (e.g., Russia-Ukraine war) and climate change are exacerbating global agricultural production and trade.
  • Export Restrictions in various countries are distorting international agricultural markets.
  • Farmer Protests across countries reflect the economic and social struggles of the farming community.
• Sustainability Issues: Global agricultural productivity growth is slowing, posing challenges to feeding a growing population sustainably.

India's Agricultural Policies

• Export Bans and Restrictions: These policies are intended to control domestic prices but undermine farmers’ income by lowering market prices for key agricultural products.
• Minimum Support Price (MSP): MSP is meant to protect farmers, but is often set below international market rates, leading to a negative price effect.
• Regulatory Constraints: Policies like the Essential Commodities Act (1955) and APMC Act (2003), though aimed at ensuring food security, often lead to price suppression for farmers.
• Price Depressing Policies: India's agricultural policies result in lower farm-gate prices due to price controls, government-set procurement prices, and lack of market access.

Negative Market Price Support (MPS)

• Historical Trends:
  • From 2014-2016, India’s Producer Support Estimate (PSE) was -6.2%, driven mainly by negative MPS (-13.1%).
  • The PSE measures the annual value of transfers to farmers, both from consumers and the government.
• Inefficiencies:
  • Infrastructure Gaps: Poor infrastructure and high transaction costs lower the prices farmers receive.
  • Inefficient Resource Allocation: Short-term subsidies for inputs (fertilizers, irrigation) don’t address long-term agricultural challenges like climate change and market access.

Government Support Programs

• Subsidies and Schemes:
  • National Mission on Sustainable Agriculture (NMSA)
  • Paramparagat Krishi Vikas Yojana (PKVY) for organic farming.
  • Rashtriya Krishi Vikas Yojana (RKVY) to promote agricultural development.
  • Digital Agriculture Mission and Unified Farmer Service Platform (UFSP) for modernizing agricultural practices.
• Sustainability Efforts:
  • The government has introduced initiatives like AgriStack and Mission Organic Value Chain Development in the North East to enhance sustainable agricultural practices and reduce the negative impacts on farmers.

Global Context and Recommendations

• Environmental Public Goods Payments (EPGP): Only 0.3% of total producer support is dedicated to environmental sustainability, despite the growing need for climate-resilient agriculture.
• Sustainable Agricultural Practices: The OECD advocates for governments to tie producer support to sustainable farming practices, including the use of metrics like Total Factor Productivity (TFP) and Agri-Environmental Indicators (AEIs).
  • TFP measures agricultural efficiency, while AEIs assess the environmental impacts of farming.

OECD Overview

• OECD Function: Founded in 1961, the OECD is an international organization of 38 countries that promotes prosperity, equality, and well-being through economic reports, data, and policy analysis.
• India’s Role: India has been an OECD Key Partner since 2007, engaging with the OECD on various policy issues, though it is not a member.

In News:

The Reserve Bank of India (RBI) directed foreign portfolio investors (FPIs) to obtain necessary approvals from the government and concurrence from the investee companies when their equity holdings go beyond the prescribed limits and they reclassify the holdings as foreign direct investment (FDI).

• Approval Requirement:
  • FPIs (Foreign Portfolio Investors) must obtain necessary government approvals when reclassifying their foreign portfolio investments (FPIs) into Foreign Direct Investment (FDI).
  • Approvals are mandatory, including those related to investments from countries sharing a land border with India.
• Investment Limits:
  • According to FEMA (NDI) Rules, 2019, an FPI’s investment in an Indian company should not exceed 10% of the total paid-up equity capital (on a fully diluted basis).
  • If the FPI exceeds this limit, it has 5 trading days from the settlement of trades to either divest or reclassify the excess holdings as FDI.
• Restrictions on Reclassification:
  • Reclassification to FDI is not allowed in sectors where FDI is prohibited.
  • FPIs must ensure compliance with FDI norms, such as entry routes, sectoral caps, investment limits, pricing guidelines, and other related conditions.
• Concurrence from Investee Companies:
  • The FPI must obtain the concurrence of the investee company for reclassifying the investment into FDI.
  • This ensures that the company adheres to conditions related to prohibited sectors, sectoral caps, and government approvals.
• Reclassification Procedure:
  • The FPI must clearly state its intent to reclassify the investment to FDI and provide the necessary approvals and concurrence to its custodian.
  • The custodian is responsible for freezing the FPI's purchase transactions in the investee company’s equity instruments until the reclassification is complete.
• Regulatory Adherence:
  • The reclassification must follow the relevant provisions for FDI, including compliance with the Foreign Exchange Management Act (FEMA) and FDI guidelines.

In News:

A mechanically stable, biodegradable, hydrophobic nanocoating material can enhance the nutrient use efficiency of chemical fertilizers by tuning them for slow release, thereby limiting their interaction with the rhizosphere soil, water and microbes.

Development of Slow-Release Fertilizers:

• A biodegradable, hydrophobic nanocoating has been developed to enhance the nutrient use efficiency of chemical fertilizers.
• The nanocoating allows for slow release of nutrients, thus limiting excessive interaction with soil, water, and microbes, and optimizing fertilizer usage.

Coating Composition:

• The coating is made from nanoclay-reinforced binary carbohydrates, primarily chitosan (a biopolymer from chitin) and lignin (a plant-based polymer).
• These materials are low-cost, naturally derived, and eco-friendly, ensuring sustainability and reducing the environmental impact of fertilizer use.

Technological Innovation:

• The coating process involves using a drum rotor method to uniformly coat fertilizers, improving their efficiency.
• The tuning of hydrophobicity in the nanocoating alters the release kinetics of fertilizers, ensuring that nutrients are released in accordance with the crop’s nutrient uptake needs.

Sustainability and Biodegradability:

• The nanocoating is biodegradable, which ensures that it does not harm the environment post-application, unlike conventional chemical fertilizers that may lead to soil degradation and water pollution.
• Life cycle assessment confirms the product's long-term sustainability compared to traditional fertilizers.

Enhanced Crop Productivity:

• The slow-release coating enables a reduced fertilizer dose, while maintaining or even increasing crop yields, particularly for staple crops like rice and wheat.
• This technology facilitates higher agricultural output with fewer inputs, contributing to food security.

Industrial Viability:

• The mechanical stability of the coated fertilizers ensures they can withstand transportation and handling, making them suitable for large-scale industrial application.
• The rotary drum system used for coating ensures uniform application and superior mechanical performance, ensuring that the fertilizers are not damaged during the supply chain process.

Economic Benefits:

• The use of slow-release fertilizers can reduce overall fertilizer costs for farmers while enhancing yields, leading to improved socio-economic conditions for farmers.
• The technology holds potential for economic growth by boosting agricultural productivity and reducing the financial burden on farmers for chemical fertilizer inputs.

Global Relevance:

• The research is significant in the context of global sustainable development goals, aiming to reduce the over-reliance on conventional chemical fertilizers that contribute to soil degradation, water contamination, and greenhouse gas emissions.

Research Collaboration:

• This breakthrough was achieved by scientists from the Institute of Nano Science and Technology (INST), Mohali, in collaboration with the Department of Science and Technology (DST).
• The findings were published in the peer-reviewed journal Environmental Science: Nano, highlighting its scientific validation.

In News:

• India's annual hidden costs from agrifood systems total $1.3 trillion, the third-largest globally, after China ($1.8 trillion) and the US ($1.4 trillion).
• These costs are mainly driven by unhealthy dietary patterns leading to non-communicable diseases (NCDs), such as heart disease, diabetes, and stroke.

Major Contributors to Hidden Costs:

• Unhealthy Diets: Over 73% of India’s hidden costs stem from unhealthy dietary habits, including:
  • Excessive consumption of processed foods and additives ($128 billion).
  • Low intake of plant-based foods, fruits, and beneficial fatty acids ($846 billion).
• These dietary risks contribute to a significant health burden, increasing the prevalence of NCDs and reducing labor productivity.

Global Context:

• Global hidden costs of agrifood systems amount to $12 trillion annually.
• 70% of these costs (~$8.1 trillion) arise from unhealthy dietary patterns, which include high intakes of sugar, salt, and processed foods, contributing to diseases and economic losses.

Health Impacts:

• The report identifies 13 dietary risk factors that contribute to NCDs, including insufficient intake of whole grains, fruits, vegetables, and excessive sodium, with varying effects across different agrifood systems.

Environmental and Social Costs:

• Environmental Costs: High costs from unsustainable agricultural practices, including greenhouse gas emissions and nitrogen runoff. In some agrifood systems, environmental costs can reach up to 20% of GDP.
• Social Costs: High poverty rates among agrifood workers and undernourishment in systems like protracted crises and traditional agrifood systems contribute significantly to the hidden costs.

India’s Agrifood System Profile:

• India’s agrifood system faces significant challenges related to low wages, poor productivity, and poverty among agrifood workers, driven by distributional failures.
• Climate Change and Environmental Degradation: Issues like droughts, floods, and soil degradation threaten food security and agricultural sustainability in India.

Recommendations for Transformative Change:

• True Cost Accounting: Implementing this method can help better capture hidden costs and enable more informed decision-making for a sustainable agrifood system.
• Healthier Diets: Policies to make nutritious food more affordable and accessible to reduce health-related hidden costs.
• Sustainability Incentives: Encouraging practices that reduce greenhouse gas emissions, harmful land-use changes, and biodiversity loss, using labelling, certification, and industry standards.
• Consumer Empowerment: Providing accessible information about the environmental, social, and health impacts of food choices, ensuring even vulnerable households benefit from healthier options.

India’s Path Forward:

• India has several ongoing initiatives for sustainable agriculture, including:
  • National Mission for Sustainable Agriculture (NMSA).
  • Eat Right Initiative.
  • Digital Agriculture Mission (DAM).
• However, challenges like climate change, soil degradation, and low productivity among smallholder farmers hinder progress toward sustainable food systems.

Key Focus Areas for India’s Agrifood Systems:

• Support for Smallholder Farmers: Enhancing access to technology, markets, and financial services for marginalized farmers.
• Sustainable Practices: Adoption of water-efficient practices, soil health restoration, and environmentally friendly farming methods.
• Collaboration with International Agencies: Cooperation with FAO, WFP, and others to strengthen agricultural reforms and support smallholder farmers.

In News:

• NTPC has achieved the first-ever synthesis of CO? (captured from flue gas) and hydrogen (produced via a PEM electrolyzer) into methanol at its Vindhyachal plant.
• This marks a significant step in carbon management technology, aimed at advancing sustainable fuel production.

About CO?-to-Methanol Conversion:

• Carbon Dioxide Capture:
  • CO? is captured from industrial sources, such as power plants, or directly from the atmosphere.
• Hydrogen Production:
  • Renewable energy sources like solar or wind power are used to produce hydrogen through water electrolysis.
• Methanol Synthesis:
  • The captured CO? is combined with hydrogen in the presence of a catalyst to produce methanol, typically under high pressure and temperature conditions.

Benefits of CO?-to-Methanol Conversion:

• Carbon Capture and Utilization (CCU):
  • This technology reduces the impact of CO? on the atmosphere by converting it into useful products.
• Renewable Fuel Source:
  • Methanol produced through this process can be used as a fuel for transportation, power generation, or as a feedstock for chemicals.
• Energy Storage:
  • Methanol offers a more practical storage and transportation option than hydrogen, making it a potential energy storage solution and aiding the transition to hydrogen-based energy systems.
• Versatile Feedstock:
  • Methanol is widely used in producing chemicals, solvents, and plastics, supporting various industrial applications.

What is Methanol?

• Brief: Methanol, also known as methyl alcohol or wood alcohol, is the simplest form of alcohol. It is a clear, colorless, and flammable liquid with a distinctive odor.
• Key Properties:
  • Colorless, miscible with water, toxic if ingested, flammable.

In News:

• India is in talks with Oman, UAE, Saudi Arabia, Maldives, and Singapore to establish cross-border electricity transmission lines.
• This is part of the ambitious OSOWOG initiative to create a global renewable energy grid.

Key Points:

• Proposed by the Prime Minister of India at the 2018 International Solar Alliance (ISA) Assembly.
• Aims to create a transnational electricity grid that delivers power worldwide.
• Led by India and the UK, in collaboration with ISA and the World Bank Group.

Vision of OSOWOG:

• Connect regional grids through a common infrastructure for the transfer of renewable energy, focusing on solar power.
• Harness solar and other renewable energy from regions where the sun is shining and efficiently transmit it to areas of need.
• Aim to provide power to 140 countries using clean and efficient solar energy.

Phases of OSOWOG:

• Phase 1:
  • Connect the Indian grid with grids in the Middle East, South Asia, and South-East Asia.
  • Share solar and other renewable energy resources.
• Phase 2:
  • Expand the interconnected grid to include renewable resources from Africa.
• Phase 3:
  • Achieve a global interconnection aiming for 2,600 GW by 2050.
  • Integrate as many countries as possible into a single renewable energy grid.

Global Collaboration:

• Involves national governments, international organizations, legislators, power operators, and experts.
• Focus on accelerating infrastructure development for a clean energy-powered world.

In News: