Daily Answer Writing

Model Answer

Introduction to PLI Scheme

The Production Linked Incentive (PLI) Scheme, launched by the Union Government in 2020, aims to boost India’s manufacturing sector and promote an Atmanirbhar Bharat. Initially introduced in three key sectors — mobile manufacturing and electronic components, pharmaceuticals, and medical device manufacturing — it has since expanded to 11 sectors, with a budget outlay of Rs 1970 billion. The scheme is expected to generate over US$ 500 billion in production in the next five years, while fostering national manufacturing champions and creating job opportunities for India’s youth.

Significance of the PLI Scheme

1. Boosting Large-Scale Manufacturing: The scheme incentivizes production capacity and incremental turnover, which will help establish large-scale manufacturing facilities and improve industrial infrastructure, benefiting the overall supply chain ecosystem.
2. Import Substitution and Export Promotion: A key goal of the PLI scheme is to reduce India’s dependency on imports, particularly of finished goods. It aims to encourage domestic production and foster exports, thereby reducing the trade imbalance.
3. Technology Transfer and Skill Development: The scheme aims to attract foreign investment, bringing advanced technology and expertise into the country. This will help in the development of skilled manpower, enhancing India’s workforce.
4. Focus on Emerging Sectors: The PLI scheme targets sunrise sectors such as drones, advanced chemistry cell batteries, electronics, IT, and pharma, helping India stay future-ready.

Challenges in Achieving PLI Objectives

1. Dependency on Imported Parts: There is concern that the PLI scheme might turn India into an assembly unit for imported parts. For example, in the production of air conditioners, critical components like compressors, valves, and coils are still being imported.
2. Lack of Research and Development (R&D): While the scheme offers incentives based on incremental sales, India’s private industry still faces challenges in R&D. Most patents and value additions are held abroad, limiting India’s technological advancements.
3. WTO Compliance Issues: The Merchandise Exports from India Scheme (MEIS) was challenged in the WTO for violating the Subsidies and Countervailing Measures (SCM) Agreement. Similarly, products manufactured under PLI could face challenges if they disrupt global market prices.
4. Short-Term Focus: The PLI incentives are primarily short-term, and critics argue that these may not address India’s long-term competitiveness issues in global markets.

Conclusion

Despite its significance, the PLI scheme faces several challenges that could hinder its long-term success. For the scheme to truly empower India’s manufacturing sector, a focus on R&D, domestic part manufacturing, and a sustainable approach to global trade will be crucial.

Model Answer

Introduction

Priority Sector Lending (PSL) is a policy tool aimed at ensuring credit flow to sectors that contribute significantly to the economy but face challenges in accessing formal financial resources. These sectors include agriculture, micro, small and medium enterprises (MSMEs), education, and housing. However, PSL faces various challenges that impact its effectiveness.

Challenges in PSL

1. Diversion of Funds: A significant challenge is the diversion of PSL funds meant for priority sectors to ineligible areas. This undermines the policy’s intended impact, as seen in the 2017 CAG report on disaster management, which highlighted misallocation in Jammu and Kashmir.
2. Credit Misallocation: Often, the credit provided does not reach the intended beneficiaries due to bureaucratic hurdles, inefficient implementation, and limited monitoring. Reports on schemes like PM Awas Yojana and MGNREGA have highlighted such issues.
3. Compliance Issues: Banks sometimes meet PSL targets by giving loans to large corporate entities under the guise of meeting the priority sector requirements, bypassing the real beneficiaries such as small farmers or rural entrepreneurs.
4. Lack of Proper Infrastructure: The lack of financial infrastructure in rural and remote areas limits the accessibility of PSL funds to those who need it the most.

Measures to Address the Challenges

1. Rationalization of PSL Framework: The introduction of stricter regulations to ensure that funds reach the right beneficiaries, along with better monitoring mechanisms, is essential.
2. Technology Integration: The use of technology for e-payments, monitoring, and tracking can help reduce misallocation and fraud. Initiatives like the Government e-Marketplace (GeM) model could be adopted for PSL.
3. Increasing Awareness: Educating potential beneficiaries about PSL and streamlining the process will increase accessibility.
4. Better Coordination Between Stakeholders: A more integrated approach between the government, banks, and stakeholders in priority sectors can lead to better implementation and monitoring.

Conclusion

While PSL remains a critical tool for inclusive growth, addressing these challenges will require robust governance, technological integration, and continuous monitoring to ensure that the benefits are properly directed to the intended sectors.

मॉडल उत्तर

परिचय

भारत में कृषि खाद्य सुरक्षा, पोषण सुरक्षा, और गरीबी उन्मूलन का मूलभूत क्षेत्र है, जो लगभग 15% GDP में योगदान देता है। ई-प्रौद्योगिकियों जैसे कृत्रिम बुद्धिमत्ता (AI), मशीन लर्निंग (ML), और बिग डेटा ने कृषि में कई लाभ प्रदान किए हैं।

ई-प्रौद्योगिकी के लाभ

1. बेहतर निर्णय निर्माण

ई-प्रौद्योगिकी किसानों को आवश्यक जानकारी प्रदान करती है, जिससे वे बेहतर निर्णय ले सकें।

• तथ्य: मौसम संबंधी सलाह से किसान सही समय पर बीज बोने में सक्षम होते हैं, जिससे उत्पादकता बढ़ती है।

2. बेहतर योजना बनाना

ई-प्रौद्योगिकी भूमि की लगातार निगरानी में मदद करती है, जिससे प्रारंभिक चरण में समस्याओं का समाधान किया जा सकता है।

• तथ्य: मोबाइल इमेजिंग और सैटेलाइट इमेजरी जैसे टूल्स के माध्यम से एकत्रित बिग डेटा जल संसाधनों के बेहतर प्रबंधन में सहायक होता है।

3. सामुदायिक भागीदारी

आईटी अनुप्रयोगों के माध्यम से स्थानीय किसानों के बीच बेहतर तालमेल संभव होता है, जिससे फसल उत्पादन में सुधार होता है।

• तथ्य: सामुदायिक भागीदारी से किसानों को अधिक आय प्राप्त होती है।

4. कृषि संबंधी सफलताएं

ई-प्रौद्योगिकी नवीनतम कृषि सफलताओं की जानकारी साझा करने में मदद करती है।

• तथ्य: IT द्वारा उपलब्ध संसाधन नई तकनीकों और आविष्कारों के बारे में जानकारी को साझा करने में सहायक होते हैं।

सरकार द्वारा उठाए गए कदम

1. एगमार्कनेट (AGMARKNET)

यह ई-गवर्नेंस पोर्टल कीमतों और कृषि उपज मंडियों से संबंधित जानकारी का प्रसारण करता है, जिससे पारदर्शिता बढ़ती है।

2. किसान सुविधा ऐप

यह ऐप किसानों को मौसम, बाजार मूल्य, और कृषि सलाह जैसी महत्वपूर्ण जानकारी प्रदान करती है।

3. अन्य कृषि ऐप्स

• बुआई ऐप: बीज बोने की सही तिथि के लिए।
• फसल बीमा ऐप: बीमा प्रीमियम की गणना के लिए।
• पौधा जानकारी ऐप: विभिन्न फसलों के बारे में जानकारी।

4. भुवन प्लेटफार्म

इसरो का यह प्लेटफार्म वृक्षारोपण, कीट निगरानी, और मौसम से संबंधित डेटा प्रदान करता है।

5. प्रत्यक्ष लाभ अंतरण (DBT) केंद्रीय कृषि पोर्टल

यह पोर्टल सरकारी सब्सिडी के माध्यम से किसानों को आधुनिक कृषि मशीनरी अपनाने में सहायता करता है।

6. ई-नाम (e-NAM)

यह योजना राष्ट्रीय स्तर पर ई-विपणन प्लेटफार्मों को शुरू करने के लिए है।

निष्कर्ष

कृषि में ई-प्रौद्योगिकियों के लाभ और सरकारी कदमों के बावजूद, किसानों को जागरूकता बढ़ाने, डिजिटल अवसंरचना स्थापित करने, और ई-प्रौद्योगिकियों को अपनाने के लिए और प्रयासों की आवश्यकता है ताकि कृषि उत्पादकता और आय में वृद्धि सुनिश्चित की जा सके।

Model Answer

Introduction

Development Financial Institutions (DFIs) are institutions that provide long-term financial support for development projects across various sectors, including industry, agriculture, housing, and infrastructure. The Industrial Finance Corporation of India (IFCI), established in 1948, was the first DFI in India, followed by others like IDBI, NABARD, EXIM Bank, and SIDBI. DFIs can be wholly or partially government-owned, with some having majority private ownership, depending on the nature of their financing activities and associated risk-return profiles.

Challenges Faced by DFIs in India

1. Attracting Talent: DFIs compete with the private sector for skilled professionals but often struggle to offer competitive salaries, which can impact efficiency and motivation (Source: Industry Reports).
2. Actionable Strategy: DFIs need a clear strategy to navigate societal and economic changes. However, their governance structures can be complex and subject to political interference, complicating effective strategic planning.
3. Credit Decisions: Maintaining low levels of non-performing loans is crucial for DFIs. They face challenges in making sound credit decisions, often underwriting weak loans to meet volume targets, which can lead to issues like corruption.
4. Counter-productive Competition: There are instances where excessive funding chases too few viable projects, leading to poor resource allocation and ineffective competition among institutions.
5. Public-Private Balance: DFIs with private sector characteristics require trust from the government to receive benefits similar to those extended to state-owned DFIs, which can be a delicate balance.
6. Sustainable Funding: Reliance on subsidized credit from the government and the Reserve Bank of India (RBI) has not proven sustainable. The lack of a reliable funding source can severely hinder DFIs’ operations.
7. Cost Management: Maintaining a cost advantage is challenging since funds raised often come with fixed interest rates over long maturities, limiting flexibility.

Recommendations

To address these challenges, it is essential to establish standardized regulatory frameworks, advocate for performance-based remuneration to retain talent, and enhance vocational training. Encouraging consultation among DFIs can help avoid overlaps and fill market gaps. Additionally, fostering a culture of innovation and allowing DFIs to access long-term financing from external markets and multilateral institutions will enhance their effectiveness and sustainability.

Model Answer

Introduction

Social accountability initiatives are crucial for enhancing governance and empowering citizens. However, their implementation faces significant challenges that necessitate adequate measures for effective institutionalization.

Challenges and Vulnerabilities

1. Resistance to Reform: Social accountability initiatives often threaten vested interests, leading to substantial resistance from those benefiting from the status quo (World Bank, 2013). This resistance can stifle reform efforts and diminish the potential for change.
2. Risk of Collusion: There is a persistent risk of collusion among actors involved, which can manifest as data manipulation and false claims regarding accountability efforts (UNDP, 2016). Such actions undermine the integrity and effectiveness of accountability initiatives.
3. Co-option of Citizens: Powerful community members may co-opt citizens, discouraging them from speaking out against corruption (Bovens, 2007). This co-option can create a culture of silence that inhibits accountability.
4. Disruption by Vested Interests: Engaging in social accountability can expose citizens to threats and intimidation from those benefiting from a lack of accountability, deterring active participation (Transparency International, 2015).
5. Lack of Government Support: Citizens often face inadequate support from government agencies when challenging entrenched power dynamics, which further complicates collective action efforts (OECD, 2018).
6. Ineffective Grievance Redressal: The absence of timely and efficient follow-up mechanisms on social accountability findings hampers the effectiveness of initiatives (Houtzager & Lavalle, 2009).

Policy Measures for Institutionalization

To effectively address these challenges, several policy measures are necessary:

• Decentralization: Implementing detailed activity mapping for schemes based on the principle of subsidiarity can enhance local accountability (World Bank, 2013).
• Information and Awareness: Strict enforcement of proactive disclosure under the RTI Act can empower citizens and facilitate greater transparency (RTI Act, 2005).
• Capacity Building: Comprehensive training strategies for both citizens and officials are essential to strengthen participation and effectiveness (UNDP, 2016).
• Grievance Redressal Mechanisms: Establishing clear procedures with strict timelines for grievance redressal can enhance accountability (OECD, 2018).
• Mandatory Inclusion of Social Accountability: Ensuring that every scheme document includes specific social accountability tools can institutionalize these initiatives effectively (Transparency International, 2015).
• Periodic Assessments: Regular evaluations by independent assessors can help maintain the integrity and effectiveness of social accountability mechanisms (Bovens, 2007).

Conclusion

In conclusion, addressing the vulnerabilities in social accountability is essential for enhancing governance and empowering citizens. Implementing these measures will foster an environment conducive to accountability, ultimately improving service delivery and democratic engagement.