[Mission 2024] Insights SECURE SYNOPSIS: 20 March 2024
Kartavya Desk Staff
NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same
General Studies – 1
Topic: Social empowerment
Topic: Social empowerment
1. The gender pay gap has significant implications for both gender equality and economic growth. Analyse. Suggest steps that are needed to close the gender pay gap in the country. (250 words)
Difficulty level: Moderate
Reference: Indian Express. , Insights on India
Why the question: The article discusses the issue of the gender pay gap in the workforce. Key Demand of the question: To write about the causes of gender wage gap prevalent in India, its impact, and suggest suitable measures to overcome them. Directive: Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. Structure of the answer: Introduction: Begin by giving background of the issue and relevant statistics. Body: First, write about the Factors leading to gender gap viz. – The primary industries in the state and the opportunities they create; Demographics such as race/ethnicity, age, and education level; Regional differences in attitudes and beliefs about work and gender; and Differences in the scope and rength of state pay discrimination laws and policies. Next, mention the impact of the above. Next, write about the steps that are needed to overcome the above issues and address the pay gap. Conclusion: Conclude by writing a way forward.
Why the question:
The article discusses the issue of the gender pay gap in the workforce.
Key Demand of the question:
To write about the causes of gender wage gap prevalent in India, its impact, and suggest suitable measures to overcome them.
Directive:
Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.
Structure of the answer:
Introduction:
Begin by giving background of the issue and relevant statistics.
First, write about the Factors leading to gender gap viz. – The primary industries in the state and the opportunities they create; Demographics such as race/ethnicity, age, and education level; Regional differences in attitudes and beliefs about work and gender; and Differences in the scope and rength of state pay discrimination laws and policies.
Next, mention the impact of the above.
Next, write about the steps that are needed to overcome the above issues and address the pay gap.
Conclusion:
Conclude by writing a way forward.
Introduction
India is among the most important countries when it comes to the global economic growth and structural transformation story. However, asymmetries still abound in the country’s labour market.
India has made significant progress, rising from 135th (in 2022) to 127th out of 146 countries in the report’s 2023 edition, indicating an improvement in its ranking.
The pandemic has caused a disproportionate impact on women jeopardises rolling back the little progress made in the last decades—forcing more women to drop off the workforce and leaving them vulnerable to domestic violence.
Gender gap and factors contributing to wage disparity
• High gender divide: The gender gap in the country has widened, with only 62.5% of it closed and especially low gender parity in political empowerment and economic participation and opportunity.
• Wage gap: Women are paid considerably less than men, with some research showing that the gender pay gap between women and men in the same jobs with equivalent qualifications can be as much as 34%.
• Labour force participation: India, as of 2020, has the lowest female labour force participation rate among South Asian nations, with four out of five women neither working nor looking for jobs.
• High Job loss: According to Oxfam, 17 million women in India lost their jobs in April 2020, with their unemployment rate rising far higher than that among men.
• Lesser opportunities for women: Women were found to be seven times more likely to lose their jobs during the lockdown phases, and if rendered unemployed, were 11 times more likely to remain jobless than their male counterparts.
• Uneven domestic responsibility: Potential reasons for this include the increased burden of domestic responsibilities that Indian women typically had to bear, in terms of not just household chores but extra time needed for elderly care and children’s studies, with schools shut.
• Even pre-pandemic, a Time Use Survey conducted by the National Sample Survey Office showed that women spent nearly 4.5 hours on childcare and other care-giving responsibilities, in contrast with the meagre 0.88 hours for men.
Impact of wage disparity on gender equality and economic growth
Gender Equality:
• Income Disparities: When there is a significant wage gap between genders, it directly contributes to income inequality. This means that women, on average, have less economic power and resources compared to men. This can lead to reduced financial independence, limited access to education and healthcare, and fewer opportunities for personal and professional development.
• Empowerment and Decision-Making: Lower wages for women can limit their ability to participate in decision-making processes, both within their households and in broader societal contexts. This can perpetuate gender stereotypes and reinforce traditional gender roles, further entrenching inequality.
• Reduced Economic Security: Wage disparities can result in greater economic insecurity for women. They may be more vulnerable to poverty, especially in cases of divorce, separation, or widowhood, or if they are the primary breadwinners in their families.
• Intergenerational Impact: When women earn less, it can have a ripple effect on future generations. Children raised in households with limited financial resources may face educational and developmental challenges.
• Impact on Career Advancement: Lower wages can discourage women from pursuing certain career paths or from seeking leadership positions, perpetuating the underrepresentation of women in higher-paying fields and in positions of power.
Economic Growth
• Lost Economic Potential: When women are paid less for equal work, it means that a significant portion of the population is not able to fully contribute to the economy. This represents a waste of talent, skills, and productivity.
• Reduced Consumer Spending: When women earn less, they have less disposable income, which can lead to reduced consumer spending. This can have a negative impact on businesses and the overall economy.
• Lower Tax Revenue: Lower wages for women can lead to reduced tax revenue for governments. This can impact the ability of governments to invest in public goods and services, including education, healthcare, and infrastructure.
• Inequality Hampers Innovation: When a substantial portion of the population is systematically excluded from certain sectors or opportunities, it limits the diversity of perspectives and experiences in those fields. This can hinder innovation and the development of new ideas.
• Negative Societal Impact: Wage disparities can lead to social unrest and discontent. When people perceive that the system is inherently unfair, it can erode trust in institutions and lead to broader societal issues.
Measures to overcome gender gap
• Behavioural Nudge: For instance, by using taxes to incentivize fairly sharing child-care responsibilities, or by encouraging women and girls to enter traditionally male-dominated sectors such as the armed forces and information technology. , Supreme Court in India declared that women could now hold commanding positions in Army.
• Paternity leaves for men, to share the responsibility of child rearing.
• Incentivizing companies to employ women and reach 50% target.
• Strong laws and policies wrt equal pay for equal work, maternity benefits are needed to promote women’s representation in economy.
• Maternity and paternity: An amendment to the Act in 2017 increased paid maternity leave from 12 to 26 weeks. Though well-meaning, this unfortunately fortifies notions of caregiving being primarily the onus of the woman, and thus reinforces and raises the risk of women being subject to the motherhood penalty.
• An explicit law for mandatory paternity benefits will go a long way towards equalizing gender roles and reducing employer bias
• Better work conditions: The provision and strengthening of childcare facilities for working mothers are very important.
• The Maternity Benefit Act mandates the setting up of creche facilities for organizations with over 50 employees.
• A better policy measure would be to provide mothers in need of childcare with a monthly allowance. This will also help mothers working from home.
• Political Representation: India has provided now provided 33% reservation for women in the Parliament (to be implemented shortly) Panchayats and Local Bodies. Capacity Building and training can increase their capabilities further.
Conclusion
Wage disparities based on gender have far-reaching consequences. They hinder progress towards gender equality, limit economic potential, and can impede overall economic growth. Closing the gender pay gap is not only a matter of social justice, but it also makes economic sense by unlocking the full potential of the workforce. It requires concerted efforts from governments, businesses, and society as a whole.
*Value addition*
*Initiatives/Schemes for women in India*
• *Beti Bachao Beti Padhao:* It ensures the protection, survival and education of the girl child.
• *Mahila Shakti Kendra:* Aims to empower rural women with opportunities for skill development and employment.
• *Mahila Police Volunteers:* It envisages engagement of Mahila Police Volunteers in States/UTs who act as a link between police and community and facilitates women in distress.
• *Rashtriya Mahila Kosh:* It is an apex micro-finance organization that provides micro-credit at concessional terms to poor women for various livelihood and income generating activities.
• *Sukanya Samriddhi Yojna:* Under this scheme girls have been economically empowered by opening their bank accounts.
• *Female Entrepreneurship:* To promote female entrepreneurship, the Government has initiated Programmes like Stand-Up India and Mahila e-Haat (online marketing platform to support women entrepreneurs/ SHGs/NGOs), Entrepreneurship and Skill Development Programme (ESSDP).
• *Kasturba Gandhi Balika Vidyalaya:* They have been opened in Educationally Backward Blocks (EBBs).
General Studies – 2
Topic: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.
Topic: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.
2. By establishing a selection panel free of executive bias for the appointment of Election Commissioners, the Election Commission can be better equipped to fulfil its mandate of conducting free and fair elections. Critically analyse. (250 words)
Difficulty level: Moderate
Reference: The Hindu , Insights on India
Why the question: The quick, if not hasty, filling up of two vacancies in the Election Commission of India (ECI) has attracted justified criticism. Key Demand of the question: To write about the process of appointment of Election commissioners and need for an independent body to appoint them. Directive word: Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic. Structure of the answer: Introduction: Begin by writing about Article 324 to 329. Body: First, write about the mechanism of appointment of election commissioners in India. Next, write about the various issues in the Chief Election Commissioner and other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, 2023 – downgrade the Election Commission’s status to that of a Cabinet Secretary, No CJI in the selection panel, autonomy of the commission, influence of executive branch of government etc. Next, write about the measures to ensure autonomy and independence of election commission. Conclusion: Conclude with a balanced opinion.
Why the question:
The quick, if not hasty, filling up of two vacancies in the Election Commission of India (ECI) has attracted justified criticism.
Key Demand of the question:
To write about the process of appointment of Election commissioners and need for an independent body to appoint them.
Directive word:
Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.
Structure of the answer:
Introduction:
Begin by writing about Article 324 to 329.
First, write about the mechanism of appointment of election commissioners in India.
Next, write about the various issues in the Chief Election Commissioner and other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, 2023 – downgrade the Election Commission’s status to that of a Cabinet Secretary, No CJI in the selection panel, autonomy of the commission, influence of executive branch of government etc.
Next, write about the measures to ensure autonomy and independence of election commission.
Conclusion:
Conclude with a balanced opinion.
Introduction
For the conduct of free and fair elections an independent Election Commission has been provided for in Article 324. The Election Commission of India (ECI) has earned public trust due to its exemplary work as an independent and neutral authority. This achievement has been made possible because as a constitutional authority, the ECI’s autonomy is guaranteed and its functioning insulated from the interference of the executive and judiciary.
Retired bureaucrats Gyanesh Kumar and Sukhbir Singh Sandhu were recently appointed as Election Commissioners by a high-powered panel chaired by Prime Minister Narendra Modi. The quick, if not hasty, filling up of two vacancies in the Election Commission of India (ECI) has attracted justified criticism.
Appointment of Election Commissioner
• This is the first time that Election Commissioners have been appointed in accordance with the new Chief Election Commissioner and other Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Act, 2023 brought in by the government in December 2023.
• According to the Act, a selection committee headed by the Prime Minister and comprising a Union Minister nominated by the Prime Minister and the Leader of Opposition (LoP) in the Lok Sabha will select members of the EC.
• In the current committee, Union Home Minister Amit Shah is the Cabinet Minister and Adhir Ranjan Chowdhury represents the Opposition, being the Congress leader of the House in Lok Sabha.
Issues with the appointment
• The CEC Act 2023 allows the Selection Committee’s recommendations to be valid even with a vacancy could result in a monopoly of ruling party members during certain circumstances, undermining the diversity and independence of the committee.
• The selection took place at a time when a petition challenging the validity of the Act was about to be taken up for hearing.
• It is a matter of grave concern that an election commissioner whose term was set to go on for a few more years should choose to resign just days before the Commission finalised the Lok Sabha election schedule.
• It goes without saying that the discussion on the process selecting the ECs has no bearing on the competence or suitability of Gyanesh Kumar and Sukhbir Singh Sandhu, the two new ECs.
• The question now before the Court is whether a committee in which the executive has a two-one majority can be a truly independent authority.
• The argument that Prime Ministers have always been selecting the CEC and ECs seems attractive, but, ultimately, an executive-driven process has to yield to one more rooted in the constitutional principle of having an independent body to hold free and fair elections, even if the CJI, as an institutional head, might not be the person most suited to be a part of the selection process.
Way forward
• A CEC of the calibre of TN Sheshan is required to ensure free and fair elections and to strengthen democracy in India. Though such personalities appear occasionally, appointments based on merit can provide close to one.
• There is no reason to change the arm’s length relationship, which the judiciary has respected and maintained with the ECI previously.
• Allow Parliament to decide and debate whether to include the CJI or the Leader of the Opposition on the appointment panel.
• The ECI should be insulated from political and/or executive interferenceto prevent any kind of manipulation in the selection process.
Conclusion
The ECI ensures the smooth and successful functioning of the democracy. It cannot become arbitrary and partisan as that will lead to the failure of democracy. The ECI needs to continuously reinvent its powers given to it under the Indian Constitution for better functioning. The integrity and independence of the ECI and its process needs to be preserved for a free and fair election in India and to maintain the public’s faith and confidence in the Election Commission of India.
General Studies – 3
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
3. Unified Payments Interface (UPI) has revolutionized digital payments in India. Addressing its shortcomings will be essential for ensuring its sustained growth and relevance in the evolving payments landscape. Discuss. (250 words)
Difficulty level: Moderate
Reference: Live Mint , Insights on India
Why the question: India should mitigate the risks of an online-transfer monopoly while enabling the UPI system to pay for itself and innovate. Key Demand of the question: To write about the achievements of UPI and to comment on the move to levy a fee on UPI transaction. Directive word: Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments. Structure of the answer: Introduction: Begin by defining UPI. Body: First, write about the mechanism of UPI. Next, write about the successes of UPI in India – convenience, speed, security, interoperability, and increasing adoption. Next, write about the shortcomings of UPI and measures needed to overcome the sortcomings. Conclusion: Conclude by writing a way forward.
Why the question:
India should mitigate the risks of an online-transfer monopoly while enabling the UPI system to pay for itself and innovate.
Key Demand of the question:
To write about the achievements of UPI and to comment on the move to levy a fee on UPI transaction.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by defining UPI.
First, write about the mechanism of UPI.
Next, write about the successes of UPI in India – convenience, speed, security, interoperability, and increasing adoption.
Next, write about the shortcomings of UPI and measures needed to overcome the sortcomings.
Conclusion:
Conclude by writing a way forward.
Introduction
Unified Payments Interface (UPI) is a technology that consolidates various bank accounts into a single mobile app (of any participating bank) – Providing an instant real-time payment system; Allowing users to transfer money across multiple bank accounts without revealing details of one’s bank account to the other party. It is an enhanced version of Immediate Payment Service (IMPS), around–the–clock funds transfer service that enables faster, easier, and more seamless cashless payments.
Background
• The Unified Payments Interface (UPI), set up by the NPCI in 2016 in conjunction with the Reserve Bank of India (RBI) and the Indian Banks Association (IBA), has revolutionized payment practices in India.
• The number of transactions and amount transacted during February 2024 were 12.1 billion and ₹18.3 trillion, respectively.
• UPI transactions have crossed 80% of the total digital payments through various modes in the country.
Success of UPI
• Preferred Payment Mode: BHIM UPI has emerged as the preferred payment mode of the citizens and has recorded 803.6 crore digital payment transactions with the value of ₹ 12.98 lakh crore in January 2023.
• Instant and convenient mode of payment: Unlike cash, money can be instantaneously transferred to the beneficiary account using digital modes like BHIM-UPI and IMPS. Moreover, using the BHIM-UPI mode, one can effect a digital transaction via mobile phone using mobile number or easy-to-remember virtual payment address (email-like address). BHIM-UPI has enabled access to multiple Bank accounts in a single mobile app, facilitating ease of payments.
• Enhanced financial inclusion: Digital payments offer anytime, anywhere access to accounts, thus making it easy for citizens to receive payments in their accounts and to also make payments using their phone. People who may have been deterred by the time, and travelling cost involved in physically accessing a bank outlet for transactions can now conveniently access the bank account digitally and get various benefits of being part of the formal banking system and becoming financially included. Recently launched UPI 123PAYenables feature phone users to make digital transactions through UPI in assisted voice mode, facilitating digital transactions and financial inclusion in rural areas.
• Increased transparency in government system: Earlier cash payments were subject to “leakage” (payments that do not reach the recipient in full) and “ghost” (fake) recipients, particularly in the context of social security benefits by government transfers. Now, benefits are directly transferred to target beneficiary (direct benefit transfer) account through digital modes of payments.
• Improved speed and timely delivery: In contrast to a cash payment that travels at the speed of its carrier, digital payments can be virtually instantaneous, regardless of whether the sender and receiver are in the same town, district or country.
• National Electronic Toll Collection (NETC) system: NETC system enables the customer to make electronic payments at NETC-enabled toll plazas on the highway without stopping at the toll, using Radio Frequency Identification technology.
• Bharat Bill Payment System: Bharat Bill Payment System (BBPS) provides an interoperable and easily accessible bill payment service to consumers via multiple channels like Internet banking, mobile banking, mobile apps, BHIM-UPI etc. Citizens can make easy bill payments anytime, anywhere through BBPS.
• Enhanced Credit Access: Unlike cash payments, digital payments automatically establish a user’s financial footprint, thereby increasing access to formal financial services, including credit. Banks and other lending institutions can utilise digital transaction histories to take cashflow-based lending decisions for both retail lending and lending to businesses, including small businesses who may face difficulty in getting credit in the absence of verifiable cashflows.
• Safe and secure: Recipients of cash payments not only often have to travel considerable distances to receive their payments but are also particularly vulnerable to theft. Digital payments across India are secure as multiple levels of authentication are required for making transactions.
Shortcomings of UPI
• The threat of cybercrime in the global banking and financial services industry has increased amid the coronavirus pandemic. g. Malicious Software Cerberus
• g. Malicious Software Cerberus
• Fraudulent claims, chargebacks, fake buyer accounts, promotion/coupon abuse, account takeover, identity theft, card detail theft and triangulation frauds are emerging as challenges.
• The lack of digital literacy is another challenge facing many.
Way forward & conclusion
• A rightly structured Public-Private Partnership (PPP) policy may provide a 21st century engine to harness the power of market players for greater digital infrastructure, access, and literacy for the Indian population.
• In a vibrant Indian democracy, a public policy-driven digital empowerment of the Indian electorate can help ensure responsible digital conduct in the interest of consumers and the larger public interest.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. Fostering an enabling environment for Micro, Small and Medium Enterprises (MSMEs) can further enhance their contributions to India’s economic and social development. Discuss. (250 words)
Difficulty level: Easy
Reference: Insights on India
Why the question: The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable. Key Demand of the question: To write about contribution of MSME in India’s growth and development. Directive word: Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments. Structure of the answer: Introduction: Begin by giving factual status of proportion of MSME vis-à-vis the population dependent on it also adding the dimension of the demographic demand of India. Body: Elaborate upon the importance of MSMEs in socio-economic development of the country. GDP growth, Job creation, exports and entrepreneurship etc. Next, Mention about the challenges faced by MSMES – challenges faced by small enterprises, including limited access to credit, regulatory hurdles, and competition from larger players etc. Next, mention the steps that are required to overcome the above hurdles. Conclusion: Conclude by writing a way forward and summarising the overall impact of MSMEs in socio-economic development of India.
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable.
Key Demand of the question:
To write about contribution of MSME in India’s growth and development.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by giving factual status of proportion of MSME vis-à-vis the population dependent on it also adding the dimension of the demographic demand of India.
Elaborate upon the importance of MSMEs in socio-economic development of the country. GDP growth, Job creation, exports and entrepreneurship etc.
Next, Mention about the challenges faced by MSMES – challenges faced by small enterprises, including limited access to credit, regulatory hurdles, and competition from larger players etc.
Next, mention the steps that are required to overcome the above hurdles.
Conclusion:
Conclude by writing a way forward and summarising the overall impact of MSMEs in socio-economic development of India.
Introduction
The Micro, Small and Medium Enterprises(MSMEs) sector is an important pillar of the Indian economy as it contributes greatly to growth of the Indian economy with a vast network contributing about 45% to manufacturing output. It is termed as “engine of growth “for India, has played a prominent role in the development of the country in terms of creating employment opportunities.
MSMEs provide about 110 million jobs which is 22-23% of the total employment in India. It is next highest to Agriculture. However, this sector still faces several challenges. Barely 15% of MSME units have registered with the UDYAM Platform. Heterogeneity, fragmentation and informalization highlight the need for reforms in this sector.
MSMEs and socio-economic development
• Contribution to GDP: The share of MSMEs in the country’s gross value added is estimated to be about 32%.
• Leveraging Exports: It also contributes about 40% to total exports and 45% to manufacturing output.
• Employment Opportunities: It employs 60 million people, creates 1.3 million jobs every year and produces more than 8000 quality products for the Indian and international markets.
• Diversity: There are approximately 30 million MSME Units in India and is quite diverse in terms of its size, level of technology employed, range of products and services provided and target markets.
• Fostering Inclusive Growth: MSME is constructing inclusive growth in numerous ways through promoting non- agricultural livelihood at least cost, unbiased regional development, large female participation, and providing a protection against deflation.
• Boon for Rural Development: Compared with large-scale companies, MSMEs aided in the industrialisation of rural areasat minimal capital cost. The sector has made significant contributions to the country’s rural socio-economic growth and complemented major industries as well.
• Front Runner in Make in India Mission: As India aims that the products that are ‘Make in India’ are also ‘Made for the World,’adhering to global standards of quality. MSME is acquiring the centre stage in the mission. It is taken as a backbone in making this dream a possibility.
• Simple Management Structure for Enterprises: Considering India’s middle-class economy, MSME offers a flexibility that it can start with limited resources within the control of the owner.From this decision making gets easy and efficient. On the contrary, a large corporation requires a specialist for every departmental functioning as it has a complex organisational structure.
• On the contrary, a large corporation requires a specialist for every departmental functioning as it has a complex organisational structure.
• Economic Growth and Leverage Exports: It is the most significant driver in India contributing to the tune of 8% to GDP.
• Nowadays, Multi National Companies are buying semi-finished, and auxiliary products from small enterprises.It offers immense potential in creating a linkage between India’s MSME base and big companies.
The challenges and concerns associated with the growth of MSME sector:
• Access to Credit: According to Economic Survey (2017-18), MSME sector faces a major problem in terms of getting adequate credit for expansion of business activities. The Survey had pointed out that the MSME received only 17.4 per cent of the total credit outstanding. Most banks are reluctant to lend to MSMEs because from the perspective of bankers, inexperience of these enterprises, poor financials, lack of collaterals and infrastructure. According to a 2018 report by the International Finance Corporation, the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund most of the MSME funding comes from informal sources and this fact is crucial because it explains why the Reserve Bank of India’s efforts to push more liquidity towards the MSMEs have had a limited impact.
• According to Economic Survey (2017-18), MSME sector faces a major problem in terms of getting adequate credit for expansion of business activities.
• The Survey had pointed out that the MSME received only 17.4 per cent of the total credit outstanding.
• Most banks are reluctant to lend to MSMEs because from the perspective of bankers, inexperience of these enterprises, poor financials, lack of collaterals and infrastructure.
• According to a 2018 report by the International Finance Corporation, the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund
• most of the MSME funding comes from informal sources and this fact is crucial because it explains why the Reserve Bank of India’s efforts to push more liquidity towards the MSMEs have had a limited impact.
• Poor Infrastructure: With poor infrastructure, MSMEs’ production capacity is very low while production cost is very high.
• With poor infrastructure, MSMEs’ production capacity is very low while production cost is very high.
• Access to modern Technology: The lack of technological know-how and financial constraints limits the access to modern technology and consequently the technological adoption remains low.
• The lack of technological know-how and financial constraints limits the access to modern technology and consequently the technological adoption remains low.
• Access to markets: MSMEs have poor access to markets. Their advertisement and sales promotion are comparatively weaker than that of the multinational companies and other big companies. The ineffective advertisement and poor marketing channels makes it difficult for them to compete with large companies.
• MSMEs have poor access to markets. Their advertisement and sales promotion are comparatively weaker than that of the multinational companies and other big companies.
• The ineffective advertisement and poor marketing channels makes it difficult for them to compete with large companies.
• Legal hurdles: Getting statutory clearances related to power, environment, labour are major hurdles. Laws related to the all aspects of manufacturing and service concern are very complex and compliance with these laws are difficult.
• Getting statutory clearances related to power, environment, labour are major hurdles.
• Laws related to the all aspects of manufacturing and service concern are very complex and compliance with these laws are difficult.
• Lack of skilled manpower: The training and development programs in respect of MSME`S development has been. Thus, there has been a constant crunch of skilled manpower in MSMEs
• The training and development programs in respect of MSME`S development has been. Thus, there has been a constant crunch of skilled manpower in MSMEs
Other issues:
• Low ICT usage.
• Low market penetration.
• Quality assurance/certification.
• IPR related issues.
• Quality assurance/certification.
• Standardization of products and proper marketing channels to penetrate new markets.
Measures needed:
• Government of India and banks should design plans and measures to widen easy, hassle-free access to credit.
• The RBI should bring stringent norms for Non-Performing Assets (NPA) and it will help curbing loan defaulters and motivate potential good debts. Further, according to critics, the Credit Guarantee Scheme for MSME (CGTMSE) run by SIDBI is a growing contingent liability and needs to be examined with urgency
• Government should provide enhanced development and upgradation of existing rail & road network and other infrastructure facilities in less developed and rural areas to boost growth and development of MSMEs
• There should proper research and development in respect of innovative method of production and service rendering. Further, the government should promote and subsidise the technical know-how to Micro and small enterprises.
• Government should encourage procurement programme, credit and performance ratings and extensive marketing support to revive the growth of sick units.
• Skill development and imparting training to MSME workers is a crucial step to increase the productivity of the sector. The government should emphasise predominantly on skill development and training programs
• With Aatmanirbhar Bharat, the Centre has taken several steps redefining MSMEs, credit access, subordinate debt, preference in government tenders towards ‘energising the MSME sector’.
• It has also launched the MSME Udyam portal for registration, though this is not mandatory. Information asymmetry on government schemes and incentives on registration must be addressed.
• MSMEs need to be better integrated into the digital economy to expand their market access, diversify their customer base and solidify their supply chain.
• Industry and the Indian economy along with MSMEs would reap the benefits of leveraging technology, that will have positive ripple effects on the nation’s GDP and the creation of more jobs.
Way forward:
• The traditional concept of apprenticeship, which involves part-time work and is a widely accepted skilling practice, especially in weaving, handicraft and manufacturing units, does not find mention in India’s wage-protection rule-books. This oversight can be fixed via coverage by either the wage code or social security code rules, or perhaps the Shops and Establishments Act rules, as deemed appropriate
• Efforts need to focus on quality manufacturing, with the use of automation to enhance operations, and the exploration of new markets through e-commerce.
• This would require a holistic approach of hand-holding existing manufacturers in the sector, equipping both managers and their workforces with appropriate skills, and educating them on new technologies and standardization norms, even as we expose them to new market avenues and instil confidence in them that the country’s ecosystem would assist them in their expansion plans.
• New MSMEs, especially, should be encouraged to start off with this advantage.
• Skilling plans in accordance with sector-wise requirements will enable us to create appropriate job opportunities not just in India but also across the globe, as various developed economies need skilled manpower in a swathe of industries that cover manufacturing, software and healthcare.
• Indian policies need to be revisited so that discrepancies are removed and we encourage small units to take advantage of e-com platforms.
Conclusion:
Thus, Indian MSME sector is the backbone of the national economic structure and acts as a bulwark for Indian economy, providing resilience to ward off global economic shocks and adversities. Given the important role played by the sector in the economy, issues faced by it must be addressed on an urgent basis to revive the economy battered by the pandemic. Apart from the fiscal stimulus, the sector requires a political-economy approach that prioritizes MSME interests. India needs to ease the regulatory burden of small units and aid their survival through fiscal support. Above all, they need a level-playing field vis-à-vis big businesses.
Topic: Investment models.
Topic: Investment models.
5. The PPP model can be an effective and sustainable option to strengthen the nation’s infrastructure. Examine the role the PPP model can play in bringing India closer to the goal of five trillion-dollar economy. (250 words)
Difficulty level: Tough
Reference: Insights on India
Why the question: The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable. Key Demand of the question: To write about the PPP model, its ability of improve infrastructure and role to in bring India close to 5 trillion-dollar economy. Directive word: Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. Structure of the answer: Introduction: Begin by explaining the PPP model in brief. Body: First, write about the importance of PPP model in promoting and developing infrastructure in the country. Substantiate with fact/examples the achievements of PPP model in the country. Next, write about how PPP model can contribute to pushing India towards 5 trillion dollar economy. Evaluate its strengths and limitations. Conclusion: Conclude with way forward on how to overcome the limitations.
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable.
Key Demand of the question:
To write about the PPP model, its ability of improve infrastructure and role to in bring India close to 5 trillion-dollar economy.
Directive word:
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Begin by explaining the PPP model in brief.
First, write about the importance of PPP model in promoting and developing infrastructure in the country. Substantiate with fact/examples the achievements of PPP model in the country.
Next, write about how PPP model can contribute to pushing India towards 5 trillion dollar economy. Evaluate its strengths and limitations.
Conclusion:
Conclude with way forward on how to overcome the limitations.
Introduction
According to World Bank, public-private partnership (PPP) is a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance. Public-private partnerships typically are long-term and involve large corporations on the private side. Some of the commonly adopted forms of PPPs include build-operate-transfer (BOT), build-lease-transfer (BLT), design-build-operate-transfer (DBFO), operate-maintain-transfer (OMT), etc. A key element of these contracts is that the private party takes on a significant portion of the risk.
Advantages of PPP model
• Access to private sector finance: India has a very large infrastructure need and an associated funding gap. PPPs can help both to meet the need and to fill the funding gap. PPP projects often involve the private sector arranging and providing finance. This frees the public sector from the need to meet financing requirements from its own revenues (taxes) or through borrowing.
• Better infrastructure: They provide better infrastructure solutions than an initiative that is wholly public or wholly private. By shifting the responsibility for finance away from the public sector PPPs can enable more investment in infrastructure and increased access to infrastructure services.
• Increased transparency in the use of funds: A well-designed PPP process can bring procurement out from behind closed doors. The PPP tender and award process based on open competitive bidding following international best practice procedures lead to transparency.
• Less delays: They result in faster project completion and reduced delays on infrastructure projects by including time-to-completion as a measure of performance and therefore of profit.
• Risk distribution:Transfer of risks is the most important advantage of PPP projects. In PPP projects, there is a possibility to transfer most or all of the risks to the private entity. The private entities explore opportunities, even though they involve risks.
• Constant cash flow:The state budget is formed of fixed budgets for each ministry. Major investments are temporary modifications of the budget of a ministry, and this problem can be difficult to deal with within the budgetary process. Avoiding major investments by having a constant cash flow is an important driver when the state looks at the advantages of PPP.
Issues with PPP that need to be resolved
• Uncertainties: PPPs often cover a long-term period of service provision (eg. 15-30 years). Any agreement covering such a long period into the future is naturally subject to uncertainty. If the requirements of the public sponsor or the conditions facing the private sector change during the lifetime of the PPP, the contract may need to be modified to reflect the changes. This can entail large costs to the public sector.
• Policy and regulatory gaps: Inadequate regulatory framework and inefficiency in the approval process have been considered as serious disincentives for developers and contractors. For example, more than two years were needed for the Gujarat Pipavav port project to receive the necessary clearances after achieving financial closure. Moreover, most of the large projects involve dealings with various ministries where coordination remains inefficient.
• Crony capitalism: In many sectors, PPP projects have turned into conduits of crony capitalism. It is worth noting that a large chunk of politically connected firms in India are in the infrastructure sector, which have used political connections to win contracts in the past.
• Renegotiation: While private firms accept stringent terms of PPP contracts initially, they lose no opportunity for renegotiating contracts, in effect garnering a larger share of public resources than originally planned. Rather than being an exceptional clause, renegotiation has become the norm in PPP projects in India.
Conclusion
The success of Public-Private Partnership to a large extent depends on optimal risk allocation among stakeholders, the environment of trust and robust institutional capacity to timely implementation of PPP projects. To foster the successful implementation of a PPP project, a robust PPP enabling ecosystem and sound regulatory framework is essential.
General Studies – 4
Topic: Human Values – lessons from the lives and teachings of great leaders, reformers and administrators;
Topic: Human Values – lessons from the lives and teachings of great leaders, reformers and administrators;
6. What does this quote means to you? (150 words)
“Morality is not just a set of rules; it is a quality of character.” – Unknown
Difficulty level: Easy
Why the question: The question is part of the static syllabus of General studies paper – 4. Structure of the answer: Introduction: Begin by explaining the literal meaning of the quote. Body: Write about difference between preaching morality and practising it. Write about the impact of the same. Write ways how one can practice what is preached. Write about how morality determines the quality of the character. Substantiate with examples. Conclusion: Summarise by highlighting the importance of the quote in the present day.
Why the question:
The question is part of the static syllabus of General studies paper – 4.
Structure of the answer:
Introduction:
Begin by explaining the literal meaning of the quote.
Write about difference between preaching morality and practising it. Write about the impact of the same. Write ways how one can practice what is preached. Write about how morality determines the quality of the character. Substantiate with examples.
Conclusion:
Summarise by highlighting the importance of the quote in the present day.
Introduction
This quote encapsulates the essence of morality, emphasizing that it extends beyond a mere collection of rules and regulations. It suggests that morality is intricately linked to an individual’s character and the qualities they possess.
Rules and codes of conduct serve as guidelines for ethical behavior, but they are incomplete without the underlying quality of character. Morality is not simply about adhering to a predetermined set of do’s and don’ts; it involves the internalization of virtues such as honesty, compassion, fairness, and integrity. These virtues shape an individual’s character and guide their actions in a consistent and principled manner.
Furthermore, the quote implies that morality is not just an external imposition but a personal attribute that manifests through one’s behavior and choices. It emphasizes the importance of cultivating virtues and developing a strong moral character as a foundation for ethical decision-making. While rules may change or vary across different contexts, the quality of character remains fundamental and transcends specific situations.
This quote highlights that morality is not static but a lifelong pursuit. It implies that developing and refining one’s character is an ongoing process, requiring self-reflection, self-awareness, and a commitment to personal growth. It underscores the idea that morality is deeply intertwined with our inner selves and influences our interactions with others and the world at large.
Conclusion
In essence, this quote reminds us that true morality goes beyond compliance with rules; it resides in the very fabric of our character and shapes our actions, enabling us to navigate ethical dilemmas with wisdom and integrity.
Topic: Human Values – lessons from the lives and teachings of great leaders, reformers and administrators;
Topic: Human Values – lessons from the lives and teachings of great leaders, reformers and administrators;
7. What does this quote means to you? (150 words)
“In civilized life, law floats in a sea of ethics”. – Earl Warren.
Difficulty level: Tough
Why the question: The question is part of the static syllabus of General studies paper – 4. Structure of the answer: Introduction: Start by giving a simple understanding of the meaning of the quote. Body: Mention the relationship between laws and ethics. Write that law needs a proper process and is support and supplemented by ethics. Write about law as a source of ethical guidance. Substantiate with examples. Conclusion: Conclude by summarising.
Why the question:
The question is part of the static syllabus of General studies paper – 4.
Structure of the answer:
Introduction:
Start by giving a simple understanding of the meaning of the quote.
Mention the relationship between laws and ethics. Write that law needs a proper process and is support and supplemented by ethics. Write about law as a source of ethical guidance. Substantiate with examples.
Conclusion:
Conclude by summarising.
Introduction
Laws refer to the set of codified norms which are enforced by the state. They act as external obligations. On the other hand, ethics refer to the set of norms which guide our internal compass and judgements. Laws and ethics both serve similar purposes of guiding human conduct so as to make it conducive to civilized social existence. They enforce a sense of right and wrong.
The quote implies that there is a foundation of ethical values for the law. In performing our legal duties, we are also satisfying our ethical obligations. While in an uncivilized society, enactments of tyranny or barbarism may motivate an obligation to obey the law. But in a civilized society, the obligation to act ethically is not a result of supposed obligation to obey alone, but a result of the binding ethical values that have informed the content of the law.
It is well known that those nations of the world, which are deemed civilized and well-constrained by the rule of law, may be governed by laws that are not ethically sound. For instance, Slavery, apartheid, and torture, have been perpetuated pursuant to the laws of many civilized countries.
Western liberal regimes of property, contract and tort law include doctrines and principles, the applications of which result in predictable hardship for the poor and the vulnerable. Laws that permit environmental degradation, capital punishment of the innocent and political corruption are hardly ethical waters for any ship of state.
However, Laws can never be so exhaustive to cover each and every scenario possible. Hence, there will always be scope for discretion. In such scenarios, ethical behaviour should come from within. There are many scenarios where laws cannot exist. E.g. we cannot have strict laws to scrutinize every small act of corruption. Even with laws, some unethical practices continue to exist. E.g. laws for violence against women have existed for ages. But that hasn’t caused such acts to end.
Conclusion
Laws and ethics have their own unique position. Both are equally important and go hand in hand.
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