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Indian Economy

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Home/Indian Economy/Page 14

Mains Answer Writing Latest Questions

Anita Dhruw
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Anita DhruwLegend
Asked: November 21, 2024In:
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Examine the potential of the food processing industry in India to enhance agricultural growth and create employment opportunities. Also, identify the key challenges related to this sector.

food processingindustry
  1. shivamx
    shivamx Learner

    Introduction India's agricultural sector, the backbone of its economy, is ripe for transformation. The food processing industry emerges as a potent catalyst for this change. The market size of the food processing sector in India is estimated to reach USD 1,274 billion in 2027 from USD 866 billion inRead more

    Introduction

    India’s agricultural sector, the backbone of its economy, is ripe for transformation. The food processing industry emerges as a potent catalyst for this change.

    • The market size of the food processing sector in India is estimated to reach USD 1,274 billion in 2027 from USD 866 billion in 2022.
    • By converting raw agricultural produce into value-added products, the sector can significantly enhance farmers’ incomes, create employment opportunities, and ensure food security.

    Potential of Food Processing Industry in India

    • Value Addition: Increases value of raw agricultural produce like converting raw tomatoes into ketchup or puree increases their value by 20-30%
    • Reduction in Post-Harvest Losses: Currently, India loses about 30-40% of fruits and vegetables due to lack of proper storage and processing
      • Food processing can significantly reduce these losses
    • Increase in Farm Incomes: Processed foods fetch higher prices, benefiting farmers in doubling their income.
      • Example: Contract farming for specific varieties suited for processing (like, potatoes for Lays chips)
    • Export Potential: During 2021-22, India recorded USD 49.6 billion in total agriculture exports.
      • With increasing global demand for Indian cuisines and healthy food, there’s significant room for export growth.
    • Direct Employment: In food processing units, packaging, and distribution. The sector employs about 1.93 million people directly that can be further increased with increased food processing units.
      • Setting up food parks in rural areas creates local job opportunities. Mega Food Park Scheme has created significant number of jobs in rural areas
    • Innovation and Product Development: There’s immense potential for innovation in developing new products catering to changing consumer preferences, such as healthy, organic, and convenience foods.
      • Paper Boat’s success with traditional Indian beverages in modern packaging demonstrates the potential for innovative product development

    Key Challenges Related to Food Processing Sector:

    • Infrastructure Deficits: Less than 10% of India’s produce moves through cold chains, compared to 85% in developed countries.
      • Poor road connectivity in rural areas increases transit time and product spoilage.
    • Fragmented Supply Chain and Warehousing: Lack of direct farmer-processor linkages reduces farmers’ income and processors’ control over quality.
      • This fragmentation leads to price volatility, quality inconsistencies, and reduced profit margins across the value chain.
      • Multiple intermediaries between farmers and processors increase costs by 15-20%.
    • Quality and Safety Standards: Many food processing units in India are not registered with quality certification agencies which leads to inadequate implementation of food safety regulations, particularly in the unorganized sector.
      • This affects export potential and consumer trust.
        • Cancer-causing chemicals found in 527 Indian food items by EU.
        • Also, various videos of unhygienic and unhealthy tomato sauce production In factory got circulated in social media.
    • Lack of Skilled Workforce: Only 3% of India’s workforce in food processing has formal training. Also there is a shortage of food technologists, packaging specialists, and cold chain experts.
      • This skills gap hampers innovation and adoption of new technologies, reducing global competitiveness.
    • Climate Change and Water Scarcity: 54% of India faces high to extremely high water stress. Erratic weather patterns affect crop yields and quality.
      • It threatens raw material supply and increases price volatility for processors.
    • Inadequate Waste Management: Food processing generates 50 million tons of waste annually. And due to lack of efficient waste treatment, this leads to pollution and loss of potential by-product revenue.

    Way Forward

    • Farm-to-Fork Expressways: Develop dedicated logistics corridors for perishables, connecting major production centers to consumption hubs
      • Implement real-time tracking systems for shipments to reduce transit times and improve traceability
      • Establish multi-modal transport hubs in key agricultural regions to facilitate efficient movement of produce
    • Cold Chain Revolution: Incentivize private investment in cold storage facilities through tax breaks and subsidies
      • Promote solar-powered cold storage units for rural areas to overcome electricity shortages
      • Develop a national cold chain grid connecting major production and consumption centers
    • Skill India, Feed India: Launch food processing-specific vocational training programs in partnership with industry leaders
      • Create apprenticeship opportunities in food processing units across the country
      • Introduce food science and technology courses in secondary schools to create early awareness
    • Elevating Food Safety Standards: Enhance nationwide mandatory quality certification program for processed foods with different tiers
      • Provide subsidies for SMEs to obtain international quality certifications like ISO 22000 and HACCP
      • Launch a public awareness campaign on food safety standards and the importance of certified products
    • Green Processing Initiative: Introduce a green rating system for food processing units based on their environmental impact
      • Promote water recycling and zero-waste technologies in the sector through financial incentives
      • Develop guidelines for sustainable packaging and offer benefits for companies adopting them
    • Farmer-Processor Bridges: Develop an app-based platform connecting farmers directly with processors to eliminate intermediaries
      • Encourage contract farming with built-in quality control measures and fair pricing mechanisms
      • Promote farmer producer organizations (FPOs) for collective bargaining and better market access
      • Establish agricultural extension services specifically for crops used in food processing
    • Packaging Powerhouse: Incentivize domestic production of food-grade packaging materials through fiscal benefits
      • Promote research in biodegradable and active packaging solutions for extended shelf life
      • Establish testing facilities for packaging quality in major food processing hubs
      • Develop standards for smart packaging technologies like QR codes for traceability
    • Food Waste to Wealth: Provide tax incentives for food waste recycling and upcycling initiatives
      • Promote biogas plants using food processing waste for energy generation
      • Develop markets for by-products from food processing, such as pectin from fruit waste

    Conclusion

    Realizing the full potential of the food processing industry is pivotal to India’s journey towards sustainable and inclusive growth. India can make significant strides in reducing food wastage (SDG 12), enhancing agricultural productivity (SDG 2), creating decent employment opportunities (SDG 8), and improving nutritional standards (SDG 2 and SDG 3).

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Anita Dhruw
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Poll
Anita DhruwLegend
Asked: November 21, 2024In:
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Evaluate the role of the e-NAM in reducing price disparities and improving market integration for agricultural commodities. What challenges does it face in its implementations?

agriculturalmarket
  1. Akriti Pandey
    Akriti Pandey Enthusiast

    The government approved the linking of 101 APMC mandis into the e-NAM platform.   Significance of this move:   It is expected to boost the turnover of the platform. e-NAM aims to create a central online platform for agricultural commodity price discovery by integrating all existing APMC maRead more

    The government approved the linking of 101 APMC mandis into the e-NAM platform.

     

    Significance of this move:

     

    It is expected to boost the turnover of the platform.

    e-NAM aims to create a central online platform for agricultural commodity price discovery by integrating all existing APMC markets.

    The unified market is expected to aid price discovery and boost farm income.

    The platform will also offer choices to farmers to sell their produce as multiple APMC mandis will be integrated.

    Along with APMC integration, the Platform of Platforms (PoP) within the e-NAM portal will facilitate farmers to sell their produce outside their State borders.

    Due to digital access, the reach will widen to multiple markets and buyers.

    The move will also help bring transparency to business transactions which will help in better price discovery.

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Anita Dhruw
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Anita DhruwLegend
Asked: November 21, 2024In:
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Evaluate the performance of India’s Manufacturing sector under the ‘Production Linked Incentive’ initiative. What challenges need to be addressed to boost manufacturing growth?

manufacturing sectormsme
  1. shivamx
    shivamx Learner

    Evaluation of India’s Manufacturing Sector under the Production Linked Incentive (PLI) Initiative The Production Linked Incentive (PLI) scheme, launched in 2020, aims to boost India's manufacturing sector by offering financial incentives tied to incremental production. Targeting key sectors like eleRead more

    Evaluation of India’s Manufacturing Sector under the Production Linked Incentive (PLI) Initiative

    The Production Linked Incentive (PLI) scheme, launched in 2020, aims to boost India’s manufacturing sector by offering financial incentives tied to incremental production. Targeting key sectors like electronics, pharmaceuticals, textiles, and semiconductors, the initiative intends to reduce import dependence, enhance exports, and create jobs.

    Performance of the Manufacturing Sector

    1. Growth in Electronics Manufacturing:
      • India has emerged as a global hub for mobile phone production, with major firms like Apple and Samsung investing in local facilities.
      • Exports of electronics have increased, showcasing early success.
    2. Boost to Domestic Industry:
      • Sectors like pharmaceuticals (API production) and automobiles (EV components) have seen significant investment.
      • PLI schemes have attracted over ₹2.5 lakh crore in committed investments across multiple industries.
    3. Employment Generation:
      • PLI is expected to generate 6 million direct and indirect jobs, though full realization of this potential is ongoing.
    4. Export Growth:
      • Increased production capacity is leading to higher exports in targeted sectors, particularly electronics and textiles.

    Challenges in Boosting Manufacturing Growth

    1. Slow Disbursal of Incentives: Delays in financial support discourage smaller manufacturers from participating.
    2. Infrastructure Gaps: Poor logistics and energy availability hinder efficient production and competitiveness.
    3. Supply Chain Disruptions: Dependence on imported raw materials limits resilience, especially in sectors like electronics and semiconductors.
    4. Skilled Workforce Shortage: Insufficient training hampers scaling up advanced manufacturing industries.
    5. Regulatory Hurdles: Complex approval processes and compliance requirements deter investment.

    Conclusion

    The PLI initiative has spurred early gains, particularly in electronics and pharmaceuticals, marking a significant step toward India’s goal of becoming a global manufacturing hub. However, addressing challenges like infrastructure, workforce development, and faster policy implementation is critical to sustaining growth and achieving long-term success in the manufacturing sector.

     

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Anita Dhruw
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Anita DhruwLegend
Asked: November 21, 2024In:
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How does the informal nature of India’s workforce impact the goal of achieving inclusive growth? Suggest the potential solutions for formalizing the economy while protecting vulnerable workers.

economicworkforce
  1. shivamx
    shivamx Learner

    Introduction India's workforce is predominantly informal, with over 90% of workers engaged in informal employment. This extensive informality poses challenges to achieving inclusive growth, as it often results in job insecurity, limited access to social security, and reduced productivity. Body ImpacRead more

    Introduction

    India’s workforce is predominantly informal, with over 90% of workers engaged in informal employment. This extensive informality poses challenges to achieving inclusive growth, as it often results in job insecurity, limited access to social security, and reduced productivity.

    Body

    Impact of Informal Workforce on Inclusive Growth

    • Limited Social Security and Welfare Benefits: Informal workers often lack access to essential welfare measures, including provident funds, pensions, health insurance, and maternity benefits, which increases their vulnerability.
      • According to the International Labour Organization (ILO), only 24% of India’s workforce has social security coverage, which exacerbates economic inequality and social exclusion.
    • Income Instability and Poverty: Informal workers on average have incomes 19% lower than formal workers (World Bank) and face unpredictable incomes and lack job security, making it challenging to escape poverty and contribute to sustained economic growth.
    • Gender Inequality in Employment: A significant proportion of female workers are engaged in informal employment, often in low-paid, unregulated jobs without maternity benefits or workplace protections.
      • 81.8% of women’s employment in India is concentrated in the informal economy (ILO)
    • Reduced Tax Revenue and Resource Allocation: The informal sector operates largely outside the tax net, leading to lower government revenue, which constrains public spending on healthcare, education, and infrastructure.
      • An estimated 50% of India’s GDP is generated by the informal sector, creating a substantial gap in potential tax collections and fiscal resources for development.
    • Limited Access to Credit and Financial Inclusion: Informal workers and enterprises often lack formal financial records, making it challenging to access credit from formal banking channels, which limits their business growth and asset creation.

    Potential Solutions for Formalising the Economy and Protecting Vulnerable Workers

    • Extending Social Security and Welfare Programs: Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) and Ayushman Bharat should be expanded to cover informal sector workers comprehensively, offering them access to pensions, health insurance, and income support.
      • This would require collaboration between the central and state governments to create a unified social security portal accessible to all workers.
    • Incentivizing Formal Employment Through Tax and Policy Support: The government can offer tax breaks and subsidies to companies that transition informal workers to formal employment, particularly in labour-intensive sectors like textiles and construction.
    • Implementing Skill Development and Training Programs: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) should prioritise training for informal workers, equipping them with skills that facilitate formal employment.
    • Simplifying Compliance and Reducing Regulatory Burden: Simplifying labour codes and reducing compliance costs for small businesses could encourage informal enterprises to register and operate formally.
      • The Code on Wages and Occupational Safety, Health, and Working Conditions Code should be streamlined and implemented effectively.
    • Promoting Digital Financial Inclusion and Formal Credit Access: Expanding digital platforms like Jan Dhan-Aadhaar-Mobile (JAM) trinity can enable informal workers to access formal banking and credit facilities, increasing their financial stability and encouraging savings.

    Conclusion

    Formalising India’s informal workforce is crucial for achieving inclusive growth. By implementing supportive policies, enhancing financial inclusion, and providing social security, India can transition towards a more equitable and productive economy, ensuring that the benefits of growth are shared by all segments of society.

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Guru
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GuruEnthusiast
Asked: November 14, 2024In: , , , , , , , , , , , , , , ,
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generalplanetsquestionspace
  1. Akriti Pandey
    Akriti Pandey Enthusiast

    The origin of the Earth has been a topic of much debate and speculation among scientists for centuries. Two widely accepted theories that attempt to explain the origin of our planet are the Nebular Hypothesis and the Giant Impact Hypothesis.The solar system is a vast and fascinating place, with eachRead more

    The origin of the Earth has been a topic of much debate and speculation among scientists for centuries. Two widely accepted theories that attempt to explain the origin of our planet are the Nebular Hypothesis and the Giant Impact Hypothesis.The solar system is a vast and fascinating place, with each planet having its own unique characteristics. Earth, our home planet, is a special place that supports a wide range of life forms and ecosystems.

    Nebular Hypothesis

     

    Proposed By: Immanuel Kant (1755) and further developed by Pierre-Simon Laplace (1796).

    Main Idea:

    The Solar System formed from a large, rotating cloud of gas and dust called the solar nebula.

    The nebula collapsed under gravity, causing it to spin faster and flatten into a disk.

    The Sun formed at the center, and planetesimals coalesced from material in the disk to form planets.

    Key Features:

    Explains the orderly rotation and revolution of planets.

    Accounts for the compositional differences between inner (terrestrial) and outer (gas giants) planets.

    Criticism:

    Fails to explain the observed angular momentum distribution in the Solar System.

    Planetesimal Hypothesis

     

    Proposed By: Thomas C. Chamberlin and Forest R. Moulton (1904).

    Main Idea:

    Planets formed from small, solid particles called planetesimals.

    A nearby star’s gravitational pull caused material from the Sun to condense into planetesimals.

    These planetesimals collided and coalesced to form planets.

    Key Features:

    Emphasizes the role of gravitational attraction and collision in planetary formation.

    Supported by evidence of asteroid and meteorite composition.

    Criticism:

    Relies on a nearby stellar encounter, which is statistically improbable.

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Guru
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GuruEnthusiast
Asked: November 14, 2024In: , , , ,
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NEP ( New Education Policy )

educationelaboratepolicyquestion
  1. Akriti Pandey
    Akriti Pandey Enthusiast

    National Education Policy, 2020 (NEP) envisions a massive transformation in education through– “an education system rooted in Indian ethos that contributes directly to transforming India, that is Bharat, sustainably into an equitable and vibrant knowledge society, by providing high quality educationRead more

    National Education Policy, 2020 (NEP) envisions a massive transformation in education through– “an education system rooted in Indian ethos that contributes directly to transforming India, that is Bharat, sustainably into an equitable and vibrant knowledge society, by providing high quality education to all, thereby making India a global knowledge superpower.” The NEP 2020 is founded on the five guiding pillars of Access, Equity, Quality, Affordability and Accountability. It will prepare our youth to meet the diverse national and global challenges of the present and the future.

    In school education, the National Education Policy 2020 stresses on the core values and principle that education must develop not only the cognitive skills, that is, – both ‘foundational skills’ of literacy and numeracy and ‘higher-order’ skills such as critical thinking and problem solving – but also, social and emotional skills – also referred to as ‘soft skills’ -including cultural awareness and empathy, perseverance and grit, teamwork, leadership, communication, among others. The Policy aims and aspires to universalize the pre-primary education and provides special emphasis on the attainment of foundational literacy/numeracy in primary school and beyond for all by 2025. It recommends plethora of reforms at all levels of school education which seek to ensure quality of schools, transformation of the curriculum including pedagogy with 5+3+3+4 design covering children in the age group 3-18 years, reform in the current exams and assessment system, strengthening of teacher training, and restructuring the education regulatory framework. It seeks to increase public investment in education, strengthen the use of technology and increase focus on vocational and adult education, among others. It recommends that the curriculum load in each subject should be reduced to its ‘core essential’ content by making space for holistic, discussion and analysis-based learning.

    It also proposes the revision and revamping of all aspects of the education structure, including the school regulation and governance, to create a new system which is aligned with the aspirational goals of 21st century education along with India’s tradition, culture and value system. Technology will be integrated with education through several existing as well as proposed initiatives, including energized text books, high quality e-content for capacity building of teachers and learners, question banks based on learning outcomes, etc. The policy also notes that establishing primary schools in every habitation across the country has helped in increasing access to education. However, it has led to the development of very small schools (having low number of students) which makes it operationally complex to deploy teachers and critical physical resources. Therefore, the Policy recommends that multiple public schools can be brought together to form a school complex or any innovative grouping mechanism for efficient governance. The policy has emphasized upon Quality Education across all stages of School Education. Quality education is not only a life-changing, but also a mind-crafting and character-building experience, that positively impacts on citizenship. Empowered learners not only contribute to many growing developmental imperatives of the country but also participate in creating a just and equitable society.

    In Higher Education, NEP, 2020 provides valuable insights and recommendations on various aspects of education that include moving towards multidisciplinary and holistic education, institutional autonomy, promotion of quality research through establishment of National Research Foundation, continuous professional development of teachers, integration of technology, internationalization of higher education, restructuring of governance and regulatory architecture, multidisciplinary curricula, engaging blended, pedagogy, valid reliable and blended assessment and availability of content in Indian languages. The policy is expected to bring long-lasting positive impact on the education system and making India a global hub of skilled manpower during the ‘Amrit Kaal’, the next 25 years leading up to Developed India in 2047. Its implementation needs collective efforts of Centre, States, UTs, HEIs, Regulating Agencies / Regulatory Bodies and all other relevant stakeholders.

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Guru
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GuruEnthusiast
Asked: November 13, 2024In: , , , , , ,
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indian railywayquestionreason
  1. shivamx
    shivamx Learner

    Indian Railways still uses diesel locomotives due to incomplete network electrification, especially in remote or difficult terrains. Diesel engines provide flexibility on non-electrified routes and act as backups where power supply is unreliable. Full electrification is costly and challenging in somRead more

    Indian Railways still uses diesel locomotives due to incomplete network electrification, especially in remote or difficult terrains. Diesel engines provide flexibility on non-electrified routes and act as backups where power supply is unreliable. Full electrification is costly and challenging in some areas, so a phased approach is in place. While diesel use continues, Indian Railways aims for net-zero carbon emissions by 2030 through gradual electrification and renewable energy adoption.

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Prasad Mintu Morya
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Prasad Mintu MoryaLearner
Asked: October 24, 2024In:
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Questions -Analyze how the digital transformation of the Public Distribution System (PDS) in India helps address the challenges it faces.(200 words)

# analyze how the digital transformation of the public distribution system (pds) in india helps address the challenges it faces.# public distribution system#pdsupsc
  1. Akriti Pandey
    Akriti Pandey Enthusiast
Prasad Mintu Morya
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Poll
Prasad Mintu MoryaLearner
Asked: October 24, 2024In:
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Questions -Analyze how the digital transformation of the Public Distribution System (PDS) in India helps address the challenges it faces.(200 words)

# analyze how the digital transformation of the public distribution system (pds) in india helps address the challenges it faces.# public distribution system
  1. Anita Dhruw
    Anita Dhruw Legend

    Introduction This distribution system forms a fundamental part of the food security plans for the citizens of India. However, with the passage of time, technology has emerged as an essential enabler in the tackling of long-existing issues and the overall PDS functioning. Streamlining Supply Chain MaRead more

    Introduction
    This distribution system forms a fundamental part of the food security plans for the citizens of India. However, with the passage of time, technology has emerged as an essential enabler in the tackling of long-existing issues and the overall PDS functioning.

    Streamlining Supply Chain Management:
    Technology has profoundly been instrumental in helping to achieve the PDS through computerized systems embedded in supply chain management. Computerized end-to-end supply chain operations have minimized manual interfaces, reducing drastically errors, leakage, and inefficiency.
    Biometric Authentication Enhancing Transparency and ePoS
    Biometric authentication and electronic Point of Sale (ePoS) devices have immensely contributed to the simplification of the PDS activities. Biometric authentication eliminates ghost and duplicate beneficiaries and therefore ensures that subsidies reach the right customers.


    Empowerment of Beneficiaries through Information :
    Technology has now allowed online services for the distribution of PDS information. It is now possible for the beneficiary to get entitlement and prices along with the schedule for distribution through their websites and mobile applications.


    PDS Operations: Data analytics, Machine learning, and analytics the decisioning process has been enhanced. These technologies enable authority to forecast demand, stock, and exposure points that are prone to a leakage or inefficiency.


    Conclusion
    From simplifying the supply chain and making it more effective to lending the PD system the transparency it needed and finally to empowering the beneficiaries, technology has been one of the biggest drivers in the change process.

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Guru
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GuruEnthusiast
Asked: October 18, 2024In: , , ,
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children developmentquestionstatutory body
  1. mhk saini
    mhk saini Learner

    The National Commission for Protection of Child Rights (NCPCR) was implemented in March 2007. The national commission for protection of child rights comes under the Commissions for Protection of Child Rights (CPCR) Act, 2005 December. The National Commission for Protection of Child Rights is a sanctRead more

    The National Commission for Protection of Child Rights (NCPCR) was implemented in March 2007. The national commission for protection of child rights comes under the Commissions for Protection of Child Rights (CPCR) Act, 2005 December. The National Commission for Protection of Child Rights is a sanctioned and rightful body under the administrative control of the Ministry of Women & Child Development, India. The aim of this commission is to ensure that all Laws, Policies, and Programmes are compatible with the Child Rights perspective as mentioned in the Indian constitution. The term ‘Child’ is defined as a person in the 0 to 18 years of age group.

    The national commission for protection of child rights focuses on a rights-based perspective. In order to reach every child, it provides deeper penetration to communities and households and through this, the ground-level experiences about children gathered at the field are taken and examined by all the authorities at the higher level. Different institutions and local bodies of government in every community have a major role to play to protect the rights of children.

    The functions and powers of NCPCR include:
    1.Examine and review the safeguards provided under the law for the protection of child rights and recommend measures for their effective implementation.
    2.Provide reports to the central government annually about working on those safeguards.
    3.Inquire into violation of child rights.
    4.Look into all factors that restrict the enjoyment of rights of children affected by terrorism, violence, natural disaster, trafficking, etc, and recommend remedial measures.
    5.Concentrate on matters relating to children in need of special care and protection.
    6.Review the existing policies, programmes, and other activities of child rights.
    7.Promote child rights literacy.
    8.Inspect residences and institutions that take care of children.

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