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Why this question:
Infrastructure has been focused on the budget.
Key demand of the question:
Major highlights of the Union budget that focus on the infrastructure sector.
Directive:
Enumerate - Specifically asking you to provide details in a pointwise format.
Introduction:
Give a brief introduction about how crucial the infrastructure sector in any country is.
Body:
In the first part, mention the steps taken by the government to boost the growth of the infrastructure sector that are highlighted in the budget.
In the next part, mention the impact these measures will create and underline the other steps that are needed to implement these.
Conclusion:
Conclude by mentioning a few policies adopted by the government to boost the infrastructure sector.
Model Answer
Infrastructure is the basic requirement of economic development. It does not directly produce goods and services but facilitates production in primary, secondary and tertiary economic activities by creating positive external economies. The level of economic development in any country directly depends on the development of infrastructure.
The measures that have been taken in the Union Budget 2021-22 are:
- National Infrastructure Pipeline (NIP) has now expanded to 7,400 projects.
- Rs. 20,000 crore to set up and capitalise a Development Financial Institution (DFI) – to act as a provider, enabler and catalyst for infrastructure financing.
- A “National Monetization Pipeline” of potential Brownfield infrastructure assets will be launched. An Asset Monetization dashboard will also be created for tracking the progress and to provide visibility to investors.
- Roads and Highways Infrastructure: More economic corridors are being planned.
- Railway Infrastructure: National Rail Plan for India (2030): to create a ‘future ready’ Railway system by 2030. Western Dedicated Freight Corridor (DFC) and Eastern DFC to be commissioned by June 2022, to bring down the logistic costs – enabling Make in India strategy.
- Raising the share of public transport in urban areas by expansion of metro rail network and augmentation of city bus service Rs. 18,000 crore for a new scheme, to augment public bus transport ‘MetroLite’ and ‘MetroNeo’ technologies to provide metro rail systems at much lesser cost with similar experience in Tier-2 cities and peripheral areas of Tier-1 cities.
- Power Infrastructure: A framework to give consumers alternatives to choose from among more than one Distribution Company. To improve viability of Distribution Companies, a revamped reforms-based result-linked power distribution sector scheme will be launched.
- 7 projects to be offered in PPP-mode in FY 21-22 for operation of major ports. A scheme to promote flagging of merchant ships in India will be launched by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs.
- One hundred more airports would be developed by 2024 to support the Udaan scheme.
- A National Logistics Policy will be released soon that will create a single window e-logistics market and focus on generation of employment, skills and making MSMEs competitive.
- The National Skill Development Agency will give special thrust to infrastructure-focused skill development opportunities.
- Expansion of the national gas grid from the present 16200 km to 27000 km.
In terms of the potential to attract global investment, India is in a sweet spot when compared to other emerging economies. Government and the corporate world should work together to iron out structural issues and develop frameworks that allow transparent and flexible risk sharing mechanisms to attract investments in the infrastructure sector.
Why this question:
Labour reforms have been in the news for quite a long time.
Key demand of the question:
Major highlights of the Industrial Relations Code Bill, 2020, the problems it addresses and the areas that it fails to address.
Directive:
Critically analyse- The key to tackling this question is providing ample evidence to support the claims. Ensure that the analysis is balanced by shedding light on, and presenting a critique of, and alternative perspectives. Present extensive evidence taken from a varying range of sources.
Introduction:
Give a brief introduction about the Industrial Relations Code Bill, 2020 and its objectives.
Body:
In the first part, discuss the major highlights of the bill and the reforms that have been introduced by it in several areas and the impact it will have.
In the next part, highlight the lacunae in the bill.
Conclusion:
Conclude with a balanced approach towards the Bill.
Model Answer
Recently, the Parliament introduced the Industrial Relations Code Bill, 2020. The code proposes to amalgamate The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946, and The Industrial Disputes Act, 1947. It aims to create greater labour market flexibility to encourage entrepreneurs to engage in labour-intensive sectors and to improve ease of doing business in India.
Changes that the Bill brings:
- It seeks to allow companies to hire workers on fixed-term contracts of any duration.
- It has raised the threshold for the requirement of a standing order to over 300 workers which implies that industrial establishments with up to 300 workers will not be required to furnish a standing order.
- It proposes that workers in factories will have to give a notice at least 14 days in advance to employers if they want to go on strike.
- Every industrial establishment employing 20 or more workers will have one or more Grievance Redressal Committees for resolution of disputes arising out of employees’ grievances.
- The code also proposes setting up of a reskilling fund to help skill retrenched workers.
- Introduces a feature of ‘recognition of negotiating union’ under which a trade union will be recognized as sole ‘negotiating union’ if it has the support of 75% or more of the workers on the rolls of an establishment.
Issues with the Bill:
- The Industrial Relations Code of 2019 has curtailed the right to form unions and accord them powers of representation.
- It takes away the negotiating rights of trade unions as it would be difficult for any one group to manage 75% support.
- It will give tremendous amounts of flexibility to the employers in terms of hiring and firing, dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
The new labour codes will help in increasing the pace of generating good quality jobs to cater to the growing workforce, their rising aspirations and to absorb out-migration of labour from agriculture. This way India can fully be able to capitalize on its inherent labour and skill cost and help a fast economic development.
Why this question:
Recently the glacial burst in Uttarakhand has washed away crucial hydropower projects.
Key demand of the question:
Advantages and disadvantages associated with development of hydropower projects
Directive:
Critically evaluate - Give your verdict as to what extent a statement or findings within a piece of research are true, or to what extent you agree with them. Provide evidence taken from a wide range of sources which both agree with and contradict an argument. Come to a final conclusion, basing your decision on what you judge to be the most important factors and justify how you have made your choice.
Introduction:
Briefly describe the hydropower potential that India has and the uses it can be put to- specifically hydropower projects. Give some examples.
Body:
In the first part, highlight the advantages of hydropower projects- renewable sources of power, can reduce dependence of conventional sources, etc.
In the next part, mention the challenges associated with the hydropower projects like the rehabilitation of people in an area, large financing costs involved, development in ecologically fragile areas, etc.
Conclusion:
Conclude with a way forward.
Model Answer
Hydro electricity is the conversion of the mechanical energy in flowing water into electricity. Hydro electricity is generated when the force of falling water from dams, rivers or waterfalls is used to turn turbines, which then drives generators that produce electricity. India is blessed with an immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential in the global scenario.
Benefits associated with hydropower projects:
- Hydropower is a renewable source of energy because it uses and not consumes the water for generation of electricity, and leaves this vital resource available for other uses.
- There is very little recurring cost and hence no high long term expenditure. It is cheaper as compared to electricity generated from coal and gas fired plants. It also reduces the financial losses due to frequent fluctuations in prices of fossil fuels.
- Preferred solution for meeting peak loads in grids due to its unique capabilities of quick starting and closing.
- As most of the hydro power potential is located in the higher reaches of Himalayas and North- East Region, it will result in overall socio-economic development of the region by providing direct employment in the power sector.
- Provide indirect employment/ entrepreneurial opportunities in the field of transportation, tourism and other small scale businesses.
- It provides a stable grid considering 160 GW capacity addition by 2022 from infirm sources of power like solar and wind.
- It helps reduce the dependence on fossil fuels, thus minimizing India’s import bill.
Issues associated with hydropower projects:
- Geological constraints - the Himalayan region is seismically unstable and construction of large dams in this region is considered to be structurally unsafe. Moreover, large dams themselves are found to be responsible for inducing seismicity.
- Ecological constraints - dams submerge huge tracts of forest lands which makes it difficult to obtain forest clearances. Large dams pose a threat to the by submerging forest lands and restricting the river flow.
- Socioeconomic constraints - large dams lead to the displacement of communities from upstream and downstream regions. A large number of them are tribal communities. It is difficult to rehabilitate them elsewhere because they are extremely dependent on forests for their livelihood as well as for religious and cultural purposes.
- Reservoir sedimentation: It reduces the active storage capacity, which may reduce the capability of the reservoir to deliver the benefits in course of time.
The hydropower potential of India is around 1,45,000 MW and at 60% load factor, it can meet the demand of around 85,000 MW. The hydro sector inherently poses few tasks primarily on account of risk associated with implementation that can be mitigated with timely involvement of government agencies to be made responsible for.
Why this question:
Important part of GS-III.
Key demand of the question:
Modes of foreign investment- FDI, FPI, FII, commercial loans and official loans; and measures to boost them in the country.
Directive:
Discuss- back up the answer by carefully selected evidence to make a case for and against an argument, or point out the advantages and disadvantages of the given context and finally arrive at a conclusion.
Introduction:
Introduce foreign investments in the country using some statistics.
Body:
In the first part, explain the various modes of foreign investment categorically- FDI, FPI, FII commercial loans and official loans; and the merits and challenges associated with it.
In the next part, suggest measures that should be followed by the government to boost foreign investments.
Conclusion:
Conclude with a balanced approach towards foreign investment with some policies of the government to boost it.
Model Answer
International investment or capital flows fall into four principal categories: commercial loans, official flows, foreign direct investment (FDI), and foreign portfolio investment (FPI).
- Commercial loans, which primarily take the form of bank loans issued to foreign businesses or governments.
- Official flows, which refer generally to the forms of development assistance that developed nations give to developing ones.
- FDI- a foreign company or individual makes an investment in India that involves either
- Establishing new business operations (known as green-field FDI) or
- Acquiring business assets, including controlling interests, in an already existing Indian company. (known as brown-field FDI)
- FPI- In India it has been divided into:
- FII- when foreign institutional investors invest in the shares of an Indian company, or in bonds offered by an Indian company. Foreign institutional investments are also known as ‘hot money’ because it is not stable in nature. The FIIs can pull out money from a country’s stock market/ bond market overnight.
- QFI- Qualified Foreign Investment- refers to any foreign individuals, groups or associations, or resident, however, restricted to those from a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and a country that is a signatory to International Organization of Securities Commission’s (IOSCO) Multilateral Memorandum of Understanding (MMOU). It was introduced by the Government of India in consultation with RBI and SEBI in the year 2011. The objective of enabling QFIs is to deepen and infuse more foreign funds in the Indian capital market and to reduce market volatility as individuals are considered to be long term investors, as compared to institutional investors.
Measures to promote foreign investment in India are:
- Leveraging fresh investments along with the existing investment base.
- Policy intervention in the direction of coexistence of traditional and modern retail.
- Ease regulatory hurdles for foreign investors as far as possible to boost the economy in a post-covid world.
- Foreign investors need to be provided security and continuity in the business environment.
- Provide national treatment for foreign-controlled established enterprises to avoid conflicting requirements being imposed on such enterprises in its home and host country jurisdictions.
- Cooperation on investment incentives and disincentives.
India’s attractiveness as an FDI destination has surged in recent times. In 2019, it was among the top 10 countries attracting foreign funds, receiving billions of dollars in a variety of sectors, including services, technology, IT and telecom, and construction. The Organisation for Economic Co-operation and Development (OECD) Declaration on International Investment and Multinational Enterprises recommends an inter-linked and balanced approach in the way governments treat FDI. Although India has limited participation in the OECD, it may be in its interest to consider incorporating some of these rules to attract FDI in the critical days to come.
Why this Question:
Important part of GS-III.
Key demand of the question:
Importance of eco sensitive zones and the threats it has been facing.
Directive:
Comment- Pick out the main points on a subject and give your opinion, reinforcing your point of view using logic and reference to relevant evidence, including any wider reading you have done.
Introduction:
Define what are eco-sensitive zones and the purpose of its declaration.
Body:
In the first part, categorically mention the significance of eco sensitive zones.
In the next part, highlight the threats that the eco sensitive zones are facing and the measures to strengthen their protection.
Conclusion:
Conclude with the need of having eco sensitive zones in protection of the environment.
Model Answer
Eco-Sensitive Zones or Ecologically Fragile Areas are areas within 10 kms around Protected Areas, National Parks and Wildlife Sanctuaries. They are notified by MoEFCC, Government of India under Environment Protection Act 1986. There are certain activities like organic farming that are permitted in ESZs, some like felling of trees, establishing hotels and resorts are regulated and those like commercial mining, polluting industries are prohibited.
Significance of ESZs
- They help in minimising the impact of urbanisation and other developmental activities in protected areas and areas around them.
- They act as a shock absorber in the regions of protected areas .
- Act as a transition zone from areas of high protection to areas involving lesser protection.
- Help in in-situ conservation, which deals with conservation of an endangered species in its natural habitat.
- Minimize the forest depletion and man- animal conflict.
Threats to the ESZs
- Construction activities like those of dams, urban and rural infrastructure in the ESZs negatively impact upon the environment and ecological balance.
- By failing to recognize the rights of forest communities and curbing poaching of animals, legislations like Environmental Protection Act 1986, and Wildlife Protection Act 1972, undermine the ESZs in favour of developmental activities.
- To cater to the increasing demand for eco-tourism, land around parks and sanctuaries is being cleared through deforestation, displacement of local people etc. Moreover, the tourists leave behind garbage such as plastic bags and bottles etc. which lead to environmental degradation.
- Exotic species like Eucalyptus and Acacia auriculiformis etc., and their plantations create a competing demand on naturally occurring forests.
- The rise in global temperature has generated land, water and ecological stress on the ESZs.
- The traditional methods of agriculture like the slash and burn practiced by the local communities exerts pressure on protected areas.
Sustainable development is the need of the hour and ESZs can help in realizing it. The government should ensure that the laws are complied to. This can be done with the involvement of local communities and civil society in these areas. Complete prohibition of any activity is not a feasible solution for anyone.
