Current Affairs

Model Answer

Introduction

Export-led growth is a strategy that focuses on increasing a country’s exports to boost its economic development. For India, aiming to become a developed nation by 2047, achieving sustained economic growth through this model is crucial. It is essential to understand the significance of export-led growth, the challenges it faces, and the opportunities it presents.

Significance of Export-Led Growth

One of the primary benefits of export-led growth is job creation. By expanding labor-intensive sectors like textiles and pharmaceuticals, India can generate millions of jobs, particularly for its young workforce. Moreover, focusing on exports helps in reducing the trade deficit and enhancing foreign exchange reserves, making the economy more resilient to external shocks.

Integrating into global value chains (GVCs) facilitates access to advanced technologies and best practices, improving productivity and innovation. This integration is vital for sectors aiming to compete globally. For instance, the expansion of manufacturing hubs in Tier-2 and Tier-3 cities can decentralize economic activity, promoting regional development and reducing disparities.

Key Challenges

Despite its significance, export-led growth faces several challenges. High logistics costs and outdated infrastructure hinder India’s competitiveness in the global market. The logistics cost-to-GDP ratio remains high compared to global benchmarks, which affects export efficiency. Additionally, India’s export basket is concentrated in a few sectors, making it vulnerable to economic fluctuations.

Weak integration into GVCs due to inadequate supply chain networks and low R&D investments further limits growth potential. Trade protectionism and rising tariffs pose significant risks, particularly in developed markets. Additionally, small and medium enterprises (SMEs) struggle to access affordable export financing, which restricts their ability to scale operations.

Opportunities

India has substantial opportunities to boost its export growth. Emerging sectors like renewable energy, electric vehicles, and high-value manufacturing present new avenues for expansion. Government initiatives, such as the Production Linked Incentive (PLI) scheme and the PM Gati Shakti plan, aim to enhance infrastructure and incentivize manufacturing.

The global shift towards digital trade and e-commerce also opens doors for Indian manufacturers to reach international markets. Strengthening trade ties through agreements with countries like Australia and UAE can further enhance export capabilities.

Conclusion

In conclusion, the export-led growth model holds significant potential for transforming India’s economy. While challenges exist, strategic focus on emerging sectors, technological advancements, and government policies can help overcome these hurdles. By effectively leveraging opportunities, India can achieve sustainable economic growth and work towards its goal of becoming a $20 trillion economy by 2047.

Model Answer

Introduction

The Indian telecom sector has emerged as a pivotal component of the country’s economic growth, boasting over 1.18 billion subscribers. However, despite this remarkable growth, significant challenges persist, particularly in achieving inclusive growth across urban and rural landscapes.

Key Challenges

One of the foremost challenges is the rural-urban divide, with urban teledensity at 131.01% compared to just 58.31% in rural areas. This disparity highlights the insufficient infrastructure and low digital literacy in rural regions.

Moreover, Indian telecom operators grapple with high spectrum costs, which are among the highest globally, leading to substantial debt accumulation—estimated at Rs 4.09 lakh crore. The affordability of 5G smartphones and data plans further exacerbates this issue, limiting access for lower-income users.

The sector also faces cybersecurity risks, with increasing incidents of hacking and data breaches. The presence of untrusted foreign equipment raises national security concerns, while regulatory uncertainty adds to the woes, especially with OTT platforms using telecom networks without contributing to infrastructure costs.

Measures to Address Challenges

To tackle these challenges, the government must focus on enhancing rural connectivity by expanding fiber-optic networks and incentivizing private telecom players to invest in underserved areas.

Rationalizing spectrum pricing through a graded mechanism and introducing long-term payment flexibility can alleviate financial pressures on operators. Strengthening cybersecurity by mandating end-to-end encryption and regular audits will protect sensitive data and enhance trust in telecom services.

Additionally, a fair revenue-sharing mechanism for OTT services can create a balanced ecosystem, ensuring that telecom operators are compensated for infrastructure use. Finally, boosting indigenous manufacturing through expanded PLI schemes will reduce reliance on imports and foster self-reliance.

Way Forward

In conclusion, while the Indian telecom sector stands at a critical juncture, addressing these challenges through strategic reforms and investments is essential for fostering inclusive growth. A robust and equitable telecom infrastructure is crucial for empowering all sections of society and driving India towards becoming a global telecom powerhouse.

Model Answer

Introduction

Natural farming is an ecological, sustainable agricultural method that avoids the use of synthetic fertilizers and pesticides, relying instead on ecological processes and indigenous resources. In India, where agriculture is a key component of the economy and rural livelihoods, the government’s initiative, the National Mission on Natural Farming, aims to support over 1 crore farmers across 7.5 lakh hectares. This approach presents a viable alternative to the chemical-intensive farming practices that have led to soil degradation and increased costs for farmers.

Potential Benefits of Natural Farming

Natural farming offers numerous benefits:

• Enhances Soil Health: By eliminating synthetic inputs, it promotes microbial activity and restores soil fertility, addressing the issue of degraded land, which affects 30% of India’s agricultural land.
• Reduces Water Consumption: Techniques like mulching and cover cropping enhance water retention, crucial in a country where groundwater resources are under severe stress.
• Lowers Cultivation Costs: By relying on bio-inputs such as Jeevamrut and Beejamrut, farmers can significantly reduce their input costs, which is vital for the 86% of farmers who are small and marginal.
• Enhances Climate Resilience: Natural farming practices minimize greenhouse gas emissions and have shown greater resilience during extreme weather events, aiding adaptation to climate change.
• Promotes Food Security: By encouraging diverse cropping systems, it enhances nutritional security, crucial for a large portion of the population that struggles to afford a healthy diet.
• Strengthens Rural Livelihoods: The labor-intensive nature of natural farming can generate employment opportunities in rural areas, countering job losses due to mechanization.

Challenges Faced by Natural Farming

Despite its potential, natural farming faces significant challenges:

• Lack of Scientific Validation: There are inadequate long-term studies to prove its sustainability across different agro-climatic zones, leading to skepticism among farmers.
• Uncertainty in Crop Yields: Initial yield declines can deter farmers from transitioning, especially in high-dependency regions for food security.
• Absence of Certification Standards: Without a standardized certification framework, farmers struggle to differentiate their products in the market, limiting access to premium pricing.
• Limited Market Linkages: The lack of organized value chains makes it difficult for farmers to sell their produce at fair prices.
• High Labor Requirements: The labor-intensive nature of natural farming can be a barrier, especially in areas facing labor shortages.
• Climate Sensitivity: The effectiveness of natural farming varies significantly across different climatic regions, posing challenges in implementation.

Measures to Overcome Challenges

To address these challenges, several measures can be implemented:

• Strengthening Research: Investing in long-term, multi-location trials to validate natural farming practices is essential.
• Reforming Subsidies: Redirecting existing fertilizer subsidies towards bio-input production and natural farming extension services will support farmers’ transition.
• Developing Certification Frameworks: Establishing a national-level Natural Farming Certification System (NFCS) can help farmers gain market access.
• Enhancing Market Linkages: Creating dedicated supply chains for natural farming products can ensure fair pricing and better market access.
• Promoting Farmer Training: Implementing a structured Farmer-to-Farmer Learning Model can enhance knowledge sharing and capacity building.
• Integrating with Existing Programs: Linking natural farming practices with watershed management and agroforestry programs can improve resilience and sustainability.

Way Forward

Natural farming presents a sustainable alternative to chemical-intensive agriculture, offering numerous benefits, including improved soil health and reduced input costs. However, to realize its full potential, it is crucial to address the existing challenges through targeted research, policy reforms, and robust support systems for farmers. A balanced approach that combines scientific validation and institutional backing will be vital for the long-term success of natural farming in India.