Daily Prelims Notes 30 September 2024

September 30, 2024
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

30 September 2024

Table Of Contents

1. Common Practice Standards must have India outlook

Sub: economy

Agroforestry:

Agroforestry is a land use management system where trees or shrubs are grown around or among crops or pastureland.
This practice combines agriculture and forestry to create more diverse, productive, profitable, healthy, and sustainable land-use systems.
India has a significant opportunity in agroforestry, which can be integrated with carbon finance projects through Afforestation, Reforestation, and Revegetation (ARR) initiatives.
Scope in India:
- By 2050, the area under agroforestry could expand from the current 28.4 million hectares to 53 million hectares.
- Currently, agroforestry covers 8.65% of India’s land and contributes 19.3% of the country’s carbon stocks.
- With the right policies and financial support, this sector could provide an additional carbon sink of over 2.5 billion tons of CO2 equivalent by 2030.
Contributes 19.3% of India’s carbon stocks
Economic Importance:
- Provides additional income streams for farmers
- Helps in diversifying agricultural practices
- Can be integrated with carbon finance projects for extra revenue
Benefits:
- Enhances soil fertility
- Improves water retention
- Mitigates soil erosion
- Increases overall agricultural productivity
- Contributes to long-term sustainability

Understanding “Common Practice” in Carbon Finance:

In carbon finance, “common practice” helps assess whether a project is additional – meaning it goes beyond standard activities in a region. If an activity is deemed “common,” it may not qualify for carbon credits.
Current global carbon standards like Verra’s Verified Carbon Standard (VCS) and Gold Standard focus on large-scale agricultural practices.
However, this does not suit India, where 86.1% of farmers are smallholders with less than two hectares of land. These small-scale agroforestry practices, while valuable, often don’t meet the additionality criteria, excluding many Indian farmers from carbon credit opportunities.

The Need for India-Centric Approaches:

India’s unique agricultural landscape requires rethinking the “common practice” standard to fit its smallholder farming model.
Adjusting carbon finance rules to accommodate India’s fragmented farms would allow more farmers to participate in ARR projects.
This could unlock agroforestry’s potential for carbon sequestration while boosting farmer incomes and advancing India’s climate goals.
By encouraging systematic agroforestry practices, carbon credit platforms could improve both environmental sustainability and rural livelihoods.

Benefits of Afforestation, Reforestation, and Revegetation (ARR) for Farmers

ARR initiatives offer solutions to many challenges in Indian agriculture, such as low productivity, monsoon dependency, and environmental degradation.
By adopting agroforestry through ARR projects, farmers can diversify their income and improve agricultural resilience.
Integrating trees into farms or restoring degraded land can provide farmers with income from carbon credits while also enhancing soil fertility, water retention, and reducing erosion.

Support for Small and Marginal Farmers

Research from organizations like The Energy and Resources Institute (TERI) has already demonstrated the success of ARR projects, benefiting over 56,600 farmers across seven states. However, for these initiatives to expand, international carbon standards need to adapt to India’s agricultural context.
Revising the “common practice” guidelines to better reflect Indian agroforestry practices would enable millions of smallholder farmers to participate in carbon finance, promoting sustainable development and boosting rural incomes.

Source: TH

2. India signs agreement to protect marine life in the high seas

Sub: IR

Context:

India signs the BBJN Treaty.
Signed by: S Jaishankar, India’s External Affairs Minister
Date: September 25, 2024
Location: United Nations General Assembly, New York
91 countries have signed so far

India’s Involvement:

Approved joining in July 2024
Aims to improve marine biodiversity protection
Allows creation of marine protected areas in high seas
Promotes cooperation and technology sharing

India’s Marine Biodiversity:

2,492+ marine fish species (91 endemic to Indian waters)
50 species considered threatened by IUCN
Main threats: overfishing, pollution, habitat destruction, dredging

Implications for India:

Strengthens India’s presence beyond its Exclusive Economic Zone
New opportunities for marine conservation
Addresses ocean protection, fairness, environmental damage, climate change, and biodiversity loss

About the BBNJ (Biodiversity Beyond National Jurisdiction Agreement) Treaty:

Also Known As: “Treaty of the High Seas”
Adopted: After 20 years of discussions, finalised in 2023
Part of: United Nations Convention on the Law of the Sea (UNCLOS)

Purpose and Scope

Aims to protect marine biodiversity in areas beyond national jurisdiction
Covers approximately two-thirds of the world’s oceans
This applies to areas starting 370 kilometres (200 nautical miles) from coastlines

Key Objectives

Conservation and sustainable use of marine biodiversity
Fair and equitable sharing of benefits from marine genetic resources
Establishment of area-based management tools, including marine protected areas
Conducting environmental impact assessments for activities in the high seas
Capacity-building and transfer of marine technology

Main Provisions

Marine Genetic Resources:
- Ensures fair sharing of benefits from the exploitation of marine genetic resources
- Promotes access to marine genetic resources for research and development
Area-Based Management Tools:
- Allows for the creation of marine protected areas in the high seas
- Establishes a process for identifying and designating these areas
Environmental Impact Assessments:
- Requires countries to assess the potential impact of activities before conducting them in the high seas
- Aims to prevent harm to marine ecosystems
Capacity Building and Technology Transfer:
- Promotes cooperation between countries
- Supports developing countries in conserving and sustainably using marine biodiversity
Traditional Knowledge:
- Recognizes the importance of traditional knowledge in ocean conservation
- Encourages the integration of traditional and scientific knowledge

Global Context

Supports the target of protecting 30% of the world’s land and sea by 2030 (30×30 goal)
Aligns with Sustainable Development Goal 14 (Life Below Water)
Addresses global challenges such as climate change, biodiversity loss, and ocean acidification

Implementation

Requires ratification by 60 countries to enter into force
Establishes a Conference of the Parties (COP) to make decisions on implementation
Creates a scientific and technical body to provide advice

Significance

First international legally binding instrument specifically for biodiversity in areas beyond national jurisdiction
Fills a crucial gap in ocean governance
Provides a framework for global cooperation in high seas conservation

Source: DTE

3. Quest for Dark Matter: A Struggle Against the ‘Neutrino Fog’

Sub : Sci

Sec: Space

Why in News

On August 28, 2024, members of the LUX-ZEPLIN (LZ) experiment presented a significant announcement at conferences in Chicago and São Paulo. The LZ experiment, situated 1.5 kilometers below the Earth’s surface at the Sanford Underground Research Facility in South Dakota, achieved a major milestone in the search for dark matter.

What is Dark Matter?

Dark matter makes up around 85% of the matter in the known universe, but because it doesn’t interact with light it is practically invisible.Likewise, whatever the constituent particles of dark matter are, they don’t interact strongly with other matter either.

Mass Contribution: Stars, planets, and gas make up only 15% of the universe’s mass, with the remaining 85% attributed to dark matter.

Age: Dark matter is believed to have existed since the birth of the universe, around 14 billion years ago.

The only way scientists can infer the presence of dark matter is via its gravitational influence which literally holds together most galaxies, preventing their constituent stars from flying apart as they spin.

Dark matter isn’t made up of protons and neutrons like the everyday matter.

The Neutrino Fog: A Major Obstacle

As detectors become larger, they encounter noise from neutrinos, particles emitted by the Sun and Earth’s atmosphere.Distinguishing between dark matter signals and neutrino signals becomes increasingly difficult, a phenomenon termed the ‘neutrino fog.’

What are neutrinos?

Neutrinos are the second most abundant particles in the world, after photons, or the light particle.Neutrinos are mysterious particles, produced copiously in nuclear reactions in the Sun, stars, and elsewhere.

They also “oscillate”– meaning that different types of neutrinos change into one another.Probing of oscillations of neutrinos and their relations with mass are crucial in studying the origin of the universe.

Neutrinos are created by various radioactive decays; during a supernova, by cosmic rays striking atoms etc.

What is LUX-ZEPLIN experiment?

TheLUX-ZEPLIN detector is set up to specifically search for a hypothesized type of dark matter called weakly interacting massive particles, or WIMPs

These particles are expected to collide with matter very rarely and interact extremely weakly when they do.

No dark matter particles have currently been directly detected, but the hope is that the LZ detector could change that by detecting the faint interactions of these mysterious particles with xenon atoms

This requires a sensitive detector with all possible noise that could interfere with detection eliminated.

TheLZ experiment’s xenon is in two nested titanium tanks containing ten tons of the elements in its liquid state.

These tanks are monitored by two photo multiplier tube (PMT) arrays which are poised to detect faint sources of light

It is Located deep below the Black Hills of South Dakota, US. The underground location of the dark matter detector helps protect it from high-energy protons and atomic nuclei that move through space at nearly the speed of light

Goodman-Witten (GW) Strategy: In 1985, physicists Mark Goodman and Edward Witten proposed a method to detect dark matter particles. The idea was to place a chunk of metal deep underground, shielded from other cosmic radiation.If dark matter particles collided with the atomic nuclei in the metal, the nuclei would recoil, signaling the presence of dark matter.

This strategy aimed to measure two unknowns: the mass of the dark matter particle and the rate of its interaction with atomic nuclei, referred to as the scattering cross-section. This idea laid the foundation for modern dark matter detection experiments.

Other Experiments

XENON-nT:XENON-nT is a next-generation dark matter detection experiment located at the Gran Sasso Laboratory in Italy. It aims to detect weakly interacting massive particles (WIMPs), a prime candidate for dark matter.

The detector contains a large tank of liquid xenon, which is expected to interact with dark matter particles and produce detectable signals.

PandaX-4T:PandaX-4T, located in the China Jinping Underground Laboratory, is another dark matter detection experiment designed to search for WIMPs.

Like XENON-nT, it uses liquid xenon as the detection medium. PandaX-4T boasts a highly sensitive and large-scale setup, allowing it to detect potential signals of dark matter and new particles.

4. Assessing Permafrost Collapse: India’s Arctic Expedition for Climate Disaster Prevention

Sub : Geo

Sec: Climatology

Why in News

Glaciologist S.N. Remya from Kerala, currently part of India’s Arctic Expedition at the Himadri research station in Norway, is studying permafrost collapse—a significant concern due to climate change. Her research focuses on the potential disaster risks from melting permafrost in the Himalayas and aims to provide early warnings to vulnerable communities.

What is permafrost?

Permafrost is essentially any ground that stays frozen — 0 degree Celsius or lower — for at least two years straight. These permanently frozen grounds are often found in Arctic regions such as Greenland, Alaska (the United States), Canada, Russia and Eastern Europe.

According to the National Aeronautics and Space Administration (NASA), permafrost is composed of “a combination of soil, rocks and sand that are held together by ice. The soil and ice in permafrost stay frozen all year long.” However, although the ground remains perennially frozen, permafrost regions aren’t always covered with snow.

Impact of Global Warming: The warming climate is causing these ice layers to melt, leading to permafrost thaw, which can destabilize the ground.

Relevance of Permafrost in the Himalayas:Permafrost collapse is becoming an increasingly significant issue in the upper Himalayan regions.While it’s unclear if permafrost collapse has directly contributed to recent disasters like the South Lhonak glacial lake floodin Sikkim, the possibility requires further study.

About Lhonak lake: It is a glacial-moraine-dammed lake, located in Sikkim’s far northwestern region.It is one of the fastest expanding lakes in the Sikkim Himalaya region, and one of the 14 potentially dangerous lakes susceptible to Glacial Lake outburst flood (GLOFs).

The Himadri station:It is situated in the Ny-Alesund region of Svalbard, Norway.

It is India’s first permanent Arctic research station.It is located at a distance of 1,200 kilometres (750 mi) from the North Pole.

India has an atmospheric science facility called Gruvebadet Observatory that houses various atmospheric observation networks.

5. Karnataka to Launch Cauvery Aarti: A Symbol of Cultural and Religious Significance

Sub : Geo

Sec: Mapping

Why in News

The Karnataka government is set to launch a symbolic Cauvery Aarti at Srirangapatna on October 3, 2024, during the first day of the Dasara celebrations. Inspired by the famous Ganga Aarti at Varanasi and Haridwar, this initiative aims to promote religious tourism and strengthen the cultural connection with the Cauvery River.

The Cauvery River

The Cauvery River (Kaveri) is designated as the ‘Dakshina Ganga’ or ‘the Ganga of the South’.

The Cauvery River rises at an elevation of 1,341 m at Talakaveri on the Brahmagiri range near Cherangala village of Kodagu (Coorg) district of Karnataka.

The total length of the river from origin to an outfall is 800 km.

It flows in a southeasterly direction for 705 km through the states of Karnataka and Tamil Nadu and descends the Eastern Ghats in a series of great falls.

Left Bank: Harangi, Hemavati, Shimsha, and Arkavati.

Right Bank: Lakshmantirtha,Kabbani, Suvarnavati, Bhavani,Noyil, andAmaravati joins from the right.

At Hogennekkal Falls, it takes a Southerly direction and enters the Mettur Reservoir.

A tributary called Bhavani joins Cauvery on the Right bank about 45 Kms below Mettur Reservoir. Thereafter it enters the plains of Tamil Nadu.

Two more tributaries Noyil and Amaravathi join on the right bankand here the river widens with a sandy bed and flows as ‘Akhanda Cauvery

Many projects were completed in this basin whichIncluded Krishnarajasagar in Karnataka, Mettur dam and Cauvery delta system in Tamil Nadu. LowerBhavani, Hemavati, Harangi, Kabini are important projects completed during the plan period.

Dasara Festival

Mysore Dasara is the “Nadahabha” or the state festival of Karnataka. It is celebrated for 10 days and concludes with Vijayadashami.

In Mysuru, Dasara marks the slaying of demon Mahishasura by Goddess Chamundeshwari and symbolises the triumph of good over evil.

The world-famous JambooSavari (Mysore Dasara procession)is held on the street of Mysore city on Vijayadashami. It starts from the Mysore palace and culminates at a place called

The idol of the Goddess chamundeshwari, which is placed on a golden mantapa on the top of a decorated elephant.

Though the festival is celebrated across India, Dasara in Mysuru is a legacy of the Vijayanagar emperors who ruled between the 14 th and 17 th centuries.

The grandeur of the Navaratri as celebrated by the Vijayanagar rulers have been described by medieval travellers like Abdur Razzak of Persia, who visited Vijayanagar between 1442 and 1443; Domingo Paes (1520-22) and FernaoNuniz(1535-37) from Portugal, who have given eyewitness accounts of the ‘’great feast of Bisnaga’ (for Vijayanagar).

6. A rice variety that can address farm fires in Punjab and Haryana

Sub: Sci

Sec: Biotech

Context:

IARI has developed a new rice variety Pusa-2090, which can be a viable replacement to the popular Pusa-44 variety that has caused environmental concerns.

Pusa-44 Paddy variety:

Developed by the Indian Agricultural Research Institute (IARI), New Delhi, and released for large-scale cultivation in 1993.
Growth Duration: 155-160 days, from the time of sowing its seeds in nurseries to harvesting the grain.
Yield: 35-36 quintals per acre, up to 40 quintals in some areas.
Higher yield compared to PR-126 developed by Punjab Agricultural University (30-32 quintals in 123-125 days).
Although it takes longer to mature, the extra 4-5 quintals yield is worth Rs 9,280-11,600 (per acre) at the Centre’s minimum support price of Rs 2,320 per quintal for ‘Grade A’ paddy.
Pusa-44 covered an estimated 14.8% of Punjab’s total non-basmati paddy area in 2023.

Environmental Cost:

The Pusa-44 variety, transplanted in mid-June after nursery-sowing a month before, can be harvested only towards end-October. This leaves little time for field preparation to sow the winter wheat crop and farmers often resort to stubble burning.
This leads to severe pollution in northern India from late-October to mid-November.

Ban on Pusa-44:

Punjab government has banned Pusa-44 from this crop year and IARI has stopped supplying breeder material for further multiplication after 2021.
Despite the ban, farmers are still growing it, using saved grains from the previous crops as seed.

Super Seeder: An alternative to stubble burning:

The super seeder is a tractor-drawn machine that ploughs stubble into the soil and sows the wheat seeds in a single pass.
Not all farmers can afford such expensive machines and stubble burning remains the least costly method to manage stubble.

Pusa-2090:

Developed by IARI as a shorter-duration alternative to Pusa-44, with maturity in 120-125 days and yield of 34-35 quintals per acre, closer to Pusa-44’s.
It is a cross between Pusa-44 andCB-501, an early-maturing Japonica rice line (a rice subspecies of East Asia).
The new variety has a strong culm (main stem) that makes it less prone to lodging (bending over or falling due to heavy winds and rains).
It is highly responsive to the application of nitrogen (urea), like Pusa-44.
Requires 5-6 fewer irrigations as it matures early.

7. How Mars’ atmosphere went missing: New study offers clues

Sub: Sci

Sec: Space sector

Water on Mars:

Mars today is a cold and barren desert. However, water flowed on the Martian surface once upon a time.
Existing theories suggest that a thick atmosphere would have enveloped the planet, to keep the water flowing on the Martian surface from freezing.
Then, some 5 billion years ago, the water dried up as the carbon dioxide-rich atmosphere dramatically thinned.
Understanding why this atmospheric change occurred has been a key focus area of scientists.
A study published in Science Advances by MIT geologists Joshua Murray and Oliver Jagoutz explores how water and rock interactions may have impacted Mars’ atmosphere.

What the study suggests:

Water trickled through certain rock types on the Martian surface. and set off a slow chain of reactions that progressively drew carbon dioxide out of the planet’s atmosphere and converted it into methane.
Methane is a form of carbon that can theoretically be stored for long periods on the Mars’ clay surface.

Smectite clay:

The two geologists formulated this theory based on their research on Earth, on a type of clay material known as smectite, which is known to be a highly effective carbon trap. They also found the same smectite clay on Mars.
Each grain of smectite comprises of large number of folds, within which carbon can sit for billions of years.
They found that if left exposed to the atmosphere on Earth, smectite can draw and store atmospheric carbon dioxide over millions of years, enough to cool down the planet. This, they suggest could be how the Martian atmosphere disappeared.

How was smectite formed on Mars:

On Earth, smectite is a product of tectonic activity, but Mars does not see such activity.
Upon further research, it was concluded that smectite was formed on the Mars due to reaction betweenwater and olivine, a ferrous rock that is abundant on the planet’s surface.
- Oxygen in water binds with iron in olivine, freeing hydrogen.
- Hydrogen combines with carbon dioxide to form methane.
- Over time, olivine converts into smectite, which traps the generated methane.

Potential Resource:

The trapped methane could be a crucial energy source for future human missions to Mars.

8. Hurricane Helene leaves at least 69 dead as losses of a lifetime devastate residents

Sub : Geo

Sec: Climatology

Context:

Hurricane Helene has caused massive flooding and damage to property and infrastructure in southeastern US.

What is Hurricane:

A hurricane is a powerful and destructive tropical storm characterized by strong winds, heavy rainfall, and low atmospheric pressure.
Hurricanes are also known as cyclones or typhoons in different parts of the world.
In the Atlantic Ocean and Northeast Pacific, they are called hurricanes, while in the northwestern Pacific, they are referred to as typhoons, and in the South Pacific and Indian Ocean, they are known as cyclones.

Key characteristics of hurricanes:

Low Pressure Centre:
- Hurricanes have a well-defined centre of low atmospheric pressure, known as the eye.
- The eye is typically calm and clear, with light winds, surrounded by a ring of intense thunderstorms called the eyewall.
Strong Winds: Hurricanes are known for their powerful winds that can reach sustained speeds of at least 74 miles per hour or higher.
Heavy Rainfall: Hurricanes produce heavy rainfall, which can lead to flooding, landslides, and storm surges

Formation:

Hurricanes form over warm ocean waters when the sea surface temperature is typically above 26 degrees Celsius.
Warm, moist air rises from the ocean’s surface, creating an area of low pressure.
As the air cools and condenses, it releases heat, which fuels the storm’s development.

Categories:

Hurricanes are categorized on the Saffir-Simpson Hurricane Wind Scale based on their maximum sustained wind speeds.
The scale ranges from Category 1 (weakest: 74-95 mph) to Category 5 (strongest: 157 mph and higher), with each category representing a higher wind speed and potential for damage.

9. Centre proposes 2022-23 as new base year for GDP

Sub: Eco

Sec: National Income

The Centre is proposing 2022-23 as the new base year for GDP calculations, with the first data expected to be published by February 2026. This revision comes under the Ministry of Statistics and Programme Implementation (MoSPI), and a similar base year revision is proposed for both the Consumer Price Index (CPI), which measures retail inflation, and the Index of Industrial Production (IIP), which tracks factory output growth.

Additionally, the Ministry plans to release flash employment-unemployment data starting in February 2025.

Proposed New Base Year: 2022-23
- First GDP data based on the new base year to be published in February 2026.
- Similar revisions proposed for CPI and IIP.
Criteria for Base Year Selection:
- A key factor for choosing the base year is that it should be a “normal” year without significant disruptions.
- Despite global challenges, 2022-23 was selected, factoring in the best possible normalcy.
Advisory Committee on National Account Statistics (ACNAS):
- MoSPI proposed the change to the Advisory Committee, which includes 26 members, chaired by Prof Biswanath Goldar.
- The committee consists of representatives from academia, the National Statistical Commission, Indian Statistical Institute (ISI), RBI, various ministries, and selected state governments.
New Data Sources for GDP Calculation:
- Household Consumption Expenditure Survey 2023-24
- Annual Survey of Unincorporated Sector Enterprises 2022-23
- GST Data.
Last Base Year Revision:
- The most recent base year change for GDP was in 2015, from 2004-05 to 2011-12.
- The CPI’s base year was revised to 2012, and IIP’s to 2011-12.
Employment-Unemployment Data:
- The first flash Periodic Labour Force Survey (PLFS) data is expected to be released in February 2025 for January 2025, with back-series data included for comparison.
- The data will provide unemployment figures for rural, urban, and combined areas.
Technology Integration:
- MoSPI is adopting advanced technology for data collection and dissemination.
- e-Sigma, a cloud-based portal, is being used for data processing in surveys like the capex survey.
- e-Sankhyiki portal aims to provide better data experience to the public.
Upcoming Surveys:
- New surveys related to domestic tourism expenditure, national household travel, and health expenses will be part of the next National Sample Survey round.

This base year revision is intended to incorporate updated and more representative economic data for improving GDP computation and economic planning.

Change in Base Year for National Accounts (Historical Revisions)

1948-49 to 1960-61:

Changed in August 1967

1960-61 to 1970-71:

Changed in January 1978

1970-71 to 1980-81:

Changed in February 1988

1980-81 to 1993-94:

Changed in February 1999

1993-94 to 1999-2000:

Changed in January 2006

1999-2000 to 2004-05:

Changed in January 2010

2004-05 to 2011-12:

Changed in January 2015

Upcoming Base Year Revision (As per the text)

Proposed Change: From 2011-12 to 2022-23.
First Data Release with New Base Year: Likely in February 2026.
The change will also apply to other indices like Consumer Price Index (CPI) and Index of Industrial Production (IIP).

This proposal considers 2022-23 as a relatively “normal” year, despite global disruptions. Along with the new base year, new data sources, such as the Household Consumption Expenditure Survey 2023-24 and GST data, will be integrated into the GDP computation.

10. Make in India: Ten Years of Mixed Outcomes

Sub: Eco

Sec: National Income

Objectives of Make in India (MI):
- Launched on September 25, 2014, the MI policy aimed to:
- Increase the manufacturing sector’s share in GDP to 25% from 14%-15%.
- Create 100 million additional industrial jobs by 2025 (from about 60 million).
Manufacturing Sector Performance:
- Over the last ten years, manufacturing growth has slowed to 5.5% (2012-2023) from 8.1% (2001-2012).
- The sector’s GDP share has remained stagnant at 15%-17%, failing to achieve the target of 25%.
- Employment in manufacturing has decreased, with the sector’s employment share falling from 12.6% (2011-12) to 11.4% (2022-23).
Decline in Informal Sector Employment:
- Most employment in manufacturing is concentrated in the unorganized sector, which saw a reduction of 8.2 million jobs between 2015-16 and 2022-23.
- The number of workers in this sector fell from 38.8 million to 30.6 million during this period.
Premature De-industrialization:
- A reversal of structural transformation has been observed, where more people are returning to agriculture. The share of agriculture in the workforce rose from 42.5% (2018-19) to 45.8% (2022-23).
- This shift is seen as premature de-industrialization, where the economy de-industrializes before reaching industrial maturity, which is unprecedented in post-independence India.
Fixed Investment and Industrial Output Growth:
- Fixed investment growth collapsed during the MI period, with gross fixed capital formation (GFCF) growth stagnating.
- The industrial output growth rate is significantly lower than official estimates, as per the Annual Survey of Industries (ASI).
Booming Imports:
- Imports, especially from China, have increased, meeting domestic demand and affecting local manufacturing growth.
- India’s domestic investments did not grow under MI, despite an improvement in India’s Ease of Doing Business (EDB) ranking, which rose from 142 (2014-15) to 63 (2019-20).
Critique of Ease of Doing Business Index:
- The EDB index has been criticized as a “bogus, politically motivated” measure with little empirical foundation. The government’s focus on EDB is seen as a misallocation of resources.
Policy Recommendations for Re-industrialization:
- To reverse de-industrialization, India must re-imagine its industrial policy and align trade policies to promote domestic value addition.
- Protectionist measures should focus on securing dynamic comparative advantage, rather than offering cash subsidies.
- The policy must aim for investment-led growth and technological catch-up, supported by domestic R&D and the indigenization of technology.
- The establishment of publicly funded development finance institutions (policy banks) is recommended to provide long-term credit for technological advancement and learning.

In summary, while Make in India set ambitious goals for manufacturing growth and job creation, it has not achieved its targets, with slow growth, stagnant GDP share, and a decrease in employment in the sector. Reindustrialization will require a shift in policy focus towards investment, technology, and domestic innovation.

Make in India Programme

About:

Launch: The Make in India initiative was launched in 2014 with the goal of transforming India into a global manufacturing hub.
Lead Agency: It is led by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India.
Global Invitation: It serves as an open invitation to investors and business partners globally to be part of India’s economic growth story.
Strategic Sectors: The program focuses on 27 key sectors across manufacturing and services under Make in India 2.0.

Four Pillars of Make in India:

New Processes:
- The program emphasizes improving the Ease of Doing Business through deregulation and streamlining processes for industries.
- It aims to simplify licensing and reduce bureaucratic red tape across the business lifecycle.
New Infrastructure:
- Development of industrial corridors, upgrading existing infrastructure, and creating faster business registration systems are part of the agenda.
New Sectors:
- A focus on 27 sectors in manufacturing, infrastructure, and services, with detailed information available through an interactive web portal.
New Mindset:
- A shift in the government’s role from being a regulator to a facilitator of industrial growth and economic development.