Roadmap for Answer Writing 1. Introduction Briefly define the Public Distribution System (PDS). Mention its significance in food security and the challenges it faces. Fact: PDS is the largest food security scheme globally, covering about 60% of the Indian population. (Source: Government of India) 2. ...
Model Answer Introduction India has recently emerged as the largest arms importer globally, highlighting the strategic importance of its defence sector. Traditionally reserved for the public sector until 1991, Foreign Direct Investment (FDI) was first permitted in 2001. The recent increase in the FDRead more
Model Answer
Introduction
India has recently emerged as the largest arms importer globally, highlighting the strategic importance of its defence sector. Traditionally reserved for the public sector until 1991, Foreign Direct Investment (FDI) was first permitted in 2001. The recent increase in the FDI limit to 74% under the automatic route and 100% under the government route is expected to have significant implications for both the defence sector and the broader economy.
Short Run Implications
- Boost in FDI Inflows: The liberalization is likely to attract substantial FDI inflows into the defence sector, with a significant portion allocated to establishing manufacturing units. This will accelerate employment opportunities in the sector.
- Technology Transfer: With the ability to own a controlling stake, established foreign companies are more inclined to share advanced technologies, enhancing India’s technological capabilities and fostering innovation.
- Reduction in Imports: Increased domestic production is expected to reduce reliance on imports, leading to greater transparency and a diminished role for middlemen in defence procurement.
Long Term Implications
- Development of a Military-Industrial Complex: The liberalized FDI policy will facilitate collaboration between the military, academia, and industry, promoting industrial growth and reducing import dependence.
- Strengthening Indigenous Manufacturing: Attracting foreign players to set up manufacturing units in India will bolster indigenous production capabilities, creating jobs and fostering self-reliance in defence manufacturing.
- Commercial Linkages: The integration of defence industries with commercial sectors can enhance research linkages, as many innovations in defence have potential civilian applications, driving broader economic growth.
Conclusion
The new FDI policy in the defence sector holds the potential to significantly reduce import dependency while boosting domestic manufacturing capabilities. This strategic shift not only strengthens India’s defence preparedness but also contributes positively to the overall economy.
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Model Answer Introduction The Public Distribution System (PDS) in India is critical for ensuring food security for low-income households. Despite being the largest food security scheme, it faces challenges such as hunger prevalence and inefficiencies in distribution. To enhance its effectiveness, thRead more
Model Answer
Introduction
The Public Distribution System (PDS) in India is critical for ensuring food security for low-income households. Despite being the largest food security scheme, it faces challenges such as hunger prevalence and inefficiencies in distribution. To enhance its effectiveness, the government has initiated several reformative steps.
Key Reformative Steps
1. End-to-End Computerization
The government has implemented an end-to-end computerization of the supply chain management, which includes the procurement, storage, transport, and distribution of food grains. This digitization aims to minimize human errors and streamline processes, leading to a more efficient system.
2. Real-Time Tracking Systems
To combat the black market diversion of subsidized food grains, the government has introduced GPS and Radio-Frequency Identification (RFID) systems for real-time tracking of transport vehicles. This technology enhances transparency and accountability in the distribution process.
3. Aadhaar Seeding
The integration of Aadhaar with ration cards helps eliminate duplicate and ineligible cards, ensuring that benefits reach the intended recipients. This measure is crucial for rightful targeting within the PDS.
4. Electronic Point of Sale (ePoS)
The installation of ePoS devices at Fair Price Shops (FPSs) allows for systematic tracking of food grain distribution, improving efficiency and reducing discrepancies.
5. One Nation, One Ration Card
This initiative connects all ration cards to a centralized database, allowing beneficiaries to access their rations from any state. It greatly benefits migrant workers and their families.
6. Decentralized Procurement and Private Investment
Encouraging decentralized procurement in experienced states can enable the Food Corporation of India (FCI) to focus on areas that require assistance. Additionally, enhancing storage infrastructure through private sector engagement will modernize warehousing facilities.
Conclusion
The government’s reformative steps are a positive move towards improving the PDS. However, ongoing challenges must be addressed to ensure that the system continues to support India’s food security effectively.
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