Indian Economy

Model Answer

Reasons for Unclear Land Titles in India

Unclear land titles in India can be attributed to several factors:

1. Presumptive Land Titles: In India, land transactions are recorded through sale deeds that reflect the possession of land but not the definitive ownership. This makes the land titles presumptive rather than conclusive, leading to ambiguity in ownership records.
2. Non-mandatory Registration for All Transactions: According to the Registration Act of 1908, certain land transactions, such as those by the government or leases for less than one year, do not require registration. This leads to incomplete records of land ownership.
3. High Registration Costs: The combined stamp duty (5-7%) and registration fees (1-2%) create a disincentive for property owners to register their lands at market value, further complicating the clarity of land titles.
4. Poor Maintenance of Land Records: Land records are often maintained by different departments at the district or village levels, working in isolation, without regular updates or integration, resulting in inconsistent and outdated data.

How Clear Land Titles Can Contribute to Socio-Economic Goals

Clear and conclusive land titles can significantly impact India’s socio-economic development:

1. Reduced Litigation: With 66% of civil cases related to land disputes, clear titles can expedite judicial processes, allowing courts to focus on other important matters, promoting legal efficiency.
2. Improved Credit Accessibility: Clear titles enable farmers, especially marginal ones, to secure easier access to credit and insurance, helping them invest in better agricultural practices and break the cycle of poverty.
3. Attracting Foreign Investment: Investors are often deterred by the uncertainty of land ownership. Clear titles can help mitigate legal risks, thereby fostering increased foreign investments that drive economic growth.
4. Aid in Infrastructure Development and Housing: Streamlined land acquisition for housing and infrastructure projects can address India’s growing housing deficit, estimated to reach 38 million units by 2030.
5. Boost to Economic Growth: Poor land records cost India approximately 1.3% of potential GDP growth. Digitalization and conclusive land titling can unlock economic potential, streamlining growth.

Conclusion

The shift to conclusive land titling and rapid digitization of land records is essential for improving land ownership clarity in India. It can foster greater economic development, enhance financial accessibility for farmers, and support infrastructure development.

Model Answer

Benefits of Solar-Powered Irrigation Systems (SPIS) in India

1. Reduced Dependence on Monsoons and Climate Change Resilience: SPIS can mitigate the impacts of erratic monsoon patterns and climate change. These systems ensure a consistent water supply, which enhances agricultural productivity and stability. For example, farmers in Chandrapur, Jharkhand, shifted from rain-fed paddy cultivation to vegetable farming after installing solar-powered lift irrigation systems, thereby improving yields and profitability.

2. Reliable Daytime Electricity Supply: In areas with unreliable electricity, such as Vidarbha, SPIS provides a steady and regular power supply, allowing farmers to irrigate crops without depending on erratic power schedules. This reliable energy access directly impacts productivity by ensuring timely irrigation.

3. Additional Income Streams: Farmers can sell surplus electricity generated by SPIS back to the grid, creating an extra income stream. For instance, 36% of farmers in Chhattisgarh and 14% in Haryana saw a 50% increase in their annual income after installing solar water pumps.

4. Reduced Farm Subsidies: By replacing diesel and electric pumps, SPIS reduce the need for government subsidies. In 2019, electricity subsidies for agriculture in India amounted to over Rs. 1 lakh crore. The adoption of SPIS is expected to decrease these subsidies, freeing up resources for other initiatives.

5. Environmental Benefits: SPIS significantly reduce the carbon footprint of agricultural practices by replacing fossil fuel-based power sources with solar energy. The PM-KUSUM scheme alone is projected to cut down carbon emissions by up to 32 million tonnes annually.

Limitations of SPIS

1. High Initial Investment: The installation cost of SPIS can be high, making it unaffordable for small-scale farmers. This is a significant barrier to widespread adoption.

2. Maintenance and Technical Challenges: SPIS require regular maintenance and technical expertise, which may not be readily available in rural areas, hindering their effectiveness.

3. Storage and Efficiency Issues: Solar energy is intermittent, and without efficient storage solutions, SPIS may be ineffective during cloudy days or at night. The performance of these systems is also geographically dependent.

4. Water Management Concerns: Improper management of water resources could lead to over-exploitation, especially of groundwater, necessitating stringent regulations for sustainable water use.

Conclusion: Despite these challenges, SPIS hold great potential to transform Indian agriculture by promoting sustainable, climate-resilient farming. Through targeted interventions such as training programs and public-private partnerships, the barriers to adoption can be reduced, making SPIS a key driver of inclusive growth and environmental sustainability in Indian agriculture.

Model Answer

Impact of Digitization on the Public Distribution System (PDS) in India

The digitization of India’s Public Distribution System (PDS) has emerged as a crucial solution to the long-standing challenges faced by the system, such as bogus beneficiaries, food grain leakage, and inefficient targeting of subsidies. The integration of technology in PDS operations has resulted in significant improvements:

1. Authentication of Beneficiaries
   Through digitization, the PDS has addressed the issue of bogus beneficiaries. The Aadhaar seeding of ration cards ensures that subsidies reach only eligible individuals. As of 2020, about 4.39 crore ineligible or bogus ration cards were removed through this process, enhancing the credibility of the system (Ministry of Consumer Affairs, Food & Public Distribution).
2. Reduction of Leakage and Diversion
   The introduction of online allocation of food grains and computerization of the supply chain has minimized pilferage and diversion. Real-time tracking, including the use of GPS to monitor trucks transporting food grains, has increased transparency in the system, ensuring grains reach the intended beneficiaries.
3. Enhanced Operations at Fair Price Shops
   The deployment of electronic Point of Sale (ePoS) devices in over 92% of fair price shops has streamlined operations, reducing manipulation of records and improving the beneficiary experience by enabling biometric identification.
4. Interoperability of Benefits
   The ‘One Nation One Ration Card’ (ONORC) scheme, which allows beneficiaries to access their entitlements across states, addresses the challenges faced by migrant populations. This national portability ensures that no individual is excluded from benefits.

Potential of the SMART-PDS Initiative

The SMART-PDS initiative, launched to modernize and reform the PDS, offers additional benefits:

1. Automation of Operations
   The use of automated grain analyzers for precise measurement and reduced human intervention will improve system transparency, reduce errors, and prevent biases.
2. Integration of AI and Data Science
   The application of AI and data science, such as the Public Systems Lab (PSL) at IIT Delhi, will optimize supply chain logistics, detect fraud, and improve efficiency.
3. Overcoming Technological Limitations
   SMART-PDS aims to address state-level technological constraints, enhancing the IT infrastructure and capacity at the local level.

By fostering transparency, accountability, and efficiency, SMART-PDS can contribute significantly to the achievement of SDG-1 (ending poverty) and SDG-2 (zero hunger).

Model Answer

Issues with India’s Current Irrigation System

1. Low Coverage: Despite progress, only 55% of India’s cultivated land has access to assured irrigation, leaving many farmers dependent on unpredictable rainfall.
2. Unequal Distribution: Regional disparities persist in irrigation infrastructure. For instance, 94% of farm plots in Tamil Nadu are irrigated, whereas Himachal Pradesh relies almost entirely on rain-fed farming.
3. Groundwater Depletion: Excessive extraction for irrigation has led to groundwater exhaustion, particularly in Punjab, Haryana, and Rajasthan, where annual withdrawals exceed recharge rates.
4. Low Irrigation Efficiency: Poorly maintained infrastructure like unlined canals results in water losses, with India’s average irrigation efficiency at 38%, much lower than 50-60% in developed countries.
5. Farmer Awareness: Only 19% of irrigated land uses micro-irrigation systems, while inefficient flood irrigation dominates, causing waterlogging and soil erosion.

Role of Smart Irrigation Systems (SIS)

1. Water Conservation: SIS uses real-time data and automation to optimize water use, preventing over-watering and enhancing crop yields.
   • Example: Precision drip systems reduce water wastage significantly.
2. Precision Irrigation: Advanced sensors ensure water is delivered directly to roots, improving efficiency and reducing weed growth.
3. Environmental Sustainability: By preventing waterlogging and soil erosion, SIS supports sustainable agriculture and combats groundwater depletion.
4. Remote Monitoring: SIS-equipped mobile apps allow real-time control and monitoring, improving both on-farm and off-farm water management.
5. Data-Driven Decision-Making: Insights from soil moisture and weather data aid in informed irrigation practices, continuously improving water efficiency.
6. Energy Efficiency: Efficient water distribution methods save energy, especially in states like Punjab and Haryana that rely on water pumping systems.

Conclusion

While high costs, power supply issues, and the need for farmer training remain challenges, smart irrigation systems offer a transformative solution for India’s irrigation inefficiencies. Their adoption can pave the way for sustainable water management and improved agricultural productivity.

Model Answer

Landlord Ports

A landlord port is a management model where a public port authority serves as a landlord, overseeing infrastructure and regulations, while private companies handle port operations, such as cargo handling. India is transitioning its major ports to this model under the Maritime India Vision (MIV) 2030, with plans for 39 berths to adopt it.

Key Contributions of Landlord Ports

1. Streamlined Governance

• By separating the landlord and operational roles, this model removes the conflict of interest inherent in the earlier system.
• It promotes independent and efficient oversight while fostering fair competition among private terminal operators.

2. Enhanced Operational Connectivity

• Private global companies bring extensive networks, improving interconnectivity across supply chains.
• Example: DP World linked JNPT to global shipping lines and inland logistics hubs.

3. Technological Advancements

• Private operators introduce advanced technologies, enhancing productivity and reducing operational costs.
• Example: Automated Guided Vehicles implemented by private players boost container handling capacities.

4. Improved Service Quality

• Competition among private entities drives innovation, efficiency, and customer satisfaction.
• Example: JNPT’s 100% landlord model spurred competition among private container operators, resulting in superior services.

5. Increased Investments

• The model encourages private sector participation, unlocking investments in port infrastructure.
• Example: MIV 2030 anticipates investments of ₹1,00,000–₹1,25,000 crores for capacity expansion.

Challenges and the Way Forward

• Coordination Issues: Diverse technologies used by private players may lead to integration challenges.
• Cybersecurity Concerns: Increased private participation necessitates robust cybersecurity frameworks.

Despite these challenges, the landlord port model, with its focus on private investment and operational excellence under government oversight, is poised to enhance India’s port efficiency, bolstering trade competitiveness and economic growth.