Model Answer

Significance of the Sagarmala Programme

The Sagarmala programme is a transformative initiative by the Ministry of Ports, Shipping and Waterways, aimed at promoting port-led development in India. This programme leverages the strategic advantages of ports to stimulate economic growth and enhance the country’s maritime infrastructure. Key significance includes:

1. Reduced Logistics Costs: Sagarmala seeks to lower logistics costs for both domestic and international trade by improving connectivity between ports and production centers, making Indian goods more competitive in global markets.
2. Increased Efficiency: The programme focuses on modernizing port infrastructure and using digital technologies to streamline operations, ultimately improving cargo movement and the ease of doing business in the maritime sector.
3. Promotion of Coastal Shipping: By shifting more cargo transport to coastal and inland waterways, which currently contribute only 6% to the transport modal mix, the programme aims to enhance sustainability and reduce road congestion.
4. Job Creation and Economic Growth: The initiative is projected to boost merchandise exports by approximately $110 billion by 2025 and create around 10 million new jobs, significantly impacting the economy.
5. Regional Development: Sagarmala aims to revive traditional trade routes with regions like Africa, West Asia, and Southeast Asia, strengthening India’s position in global trade.
6. Community Development: Funds from the programme will support skill development, livelihood generation, and coastal tourism, benefiting local communities.

Challenges Associated with the Sagarmala Programme

Despite its potential, the Sagarmala programme faces several challenges:

1. Resource Mobilization: Investment mobilization and timely budgetary support remain critical hurdles, as highlighted by ICRA .
2. Complex Taxation: The shipping industry is burdened by a complex tax regime, which increases operational costs and deters investment .
3. Poor Coordination: A report from a Parliamentary Standing Committee pointed out inefficiencies due to lack of coordination among ministries, leading to delays and increased costs .
4. Environmental Concerns: Infrastructure development poses risks to fragile ecosystems, including coastal erosion and challenges associated with dredging .
5. Disaster Vulnerability: Coastal regions, particularly on the eastern coast, are at risk from natural disasters like cyclones, necessitating resilient infrastructure .
6. Security Issues: Developing numerous small ports could heighten security vulnerabilities, especially along the western coast, due to geopolitical tensions .

Addressing these challenges through better coordination, integrated planning, and climate-resilient infrastructure is essential for the success of the Sagarmala programme.

Model Answer

Drivers of Growth in India’s Aviation Sector

India is rapidly emerging as one of the largest aviation markets in the world. Several key factors are fueling the growth of the country’s civil aviation sector:

1. Higher Household Income
   • Rising incomes are leading to increased business and leisure travel. Professionals are opting for air travel for work, and more individuals can afford to travel for leisure.
   • Fact: The aviation sector is benefiting from growing household income, contributing significantly to the rise in passenger traffic.
2. Entry of Low-Cost Carriers
   • Low-cost airlines have revolutionized air travel by making it affordable for the common man, further driving domestic traffic growth.
   • Fact: The expansion of budget airlines has made air travel more accessible across various segments of the population.
3. Increased Foreign Direct Investment (FDI)
   • The government has allowed up to 100% FDI in non-scheduled air transport services, seaplanes, and helicopter services, leading to infrastructure development and further growth.
   • Fact: 100% FDI is allowed through the automatic route in key aviation sectors, promoting development.
4. Increased Tourism
   • A rise in inbound tourism has contributed to the growth of air travel. In 2021, 87.5% of foreign tourists arrived in India by air.
   • Fact: 87.5% of the 1.52 million foreign tourists in 2021 entered India via air.
5. Development of Modern Airports
   • Airports are being upgraded with new technologies, focusing on speed, capacity, and sustainability, which boosts the aviation industry.
   • Fact: The development of modern airports is a key driver of growth, incorporating advanced technologies.

Challenges Faced by India’s Aviation Sector

Despite strong growth drivers, the Indian aviation sector faces several challenges:

1. High Fuel Costs
   • Fuel costs, particularly Jet Fuel, make up 20-30% of operational costs. In 2022, the cost of Aviation Turbine Fuel (ATF) rose by over 70%, one of the steepest increases in recent years.
   • Fact: High ATF prices in India, due to taxes and levies, make fuel costs among the highest in the world.
2. Infrastructure Bottlenecks
   • Many airports are outdated and located in hard-to-reach areas. Expanding runways is costly, time-consuming, and complicated due to land acquisition issues.
   • Fact: India faces challenges with aging airport infrastructure and limited space for expansion.
3. Regulatory and Compliance Issues
   • Multiple government agencies overseeing the sector create delays and increase compliance costs.
   • Fact: The involvement of several regulatory bodies complicates the sector and causes delays.
4. Shortage of Skilled Workforce
   • The aviation sector faces a lack of skilled labor due to the high cost of training and the need for updated facilities and equipment.
   • Fact: There is a shortage of qualified personnel, exacerbated by expensive and outdated training infrastructure.
5. Security and Efficiency Challenges
   • The need for stringent security measures, while essential, can add to travel time and costs.
   • Fact: Security measures are essential but contribute to delays and increased costs in the aviation sector.
   • Source: Provided content.

Conclusion

India’s civil aviation sector has the potential to become the world’s largest, driven by rising incomes, increased tourism, the expansion of low-cost carriers, and modern airport development. However, challenges like high fuel costs, inadequate infrastructure, regulatory complexities, workforce shortages, and security measures need to be addressed to fully realize this potential.

Model Answer

Despite a significant increase in capital expenditure, the operating ratio of Indian Railways (IR) has not shown improvement due to several interrelated factors:

1. Cross-Subsidization of Passenger Services: A major issue is the substantial loss incurred from passenger services, which amounted to ₹68,269 crore in 2021-22. This loss effectively nullifies the profits generated from freight traffic, leading to a deteriorating operating ratio .
2. Rising Debt Levels: The Indian Railways has been increasingly reliant on Gross Budgetary Support (GBS) and Extra Budgetary Resources (EBS) to fund its operations. Currently, approximately 17% of its revenue receipts are allocated to servicing debt, which has escalated due to a lack of surplus funds .
3. Declining Modal Share: The modal share of Indian Railways in freight transport has significantly decreased, dropping to around 27% from over 80% at the time of independence. This decline is attributed to stiff competition from road transport, particularly in coal transport, where rail’s share fell from 70% to 60% between 2011 and 2020 .
4. Fluctuating Net Tonne Kilometres (NTKM): The NTKM, a key performance indicator for freight efficiency, has shown inconsistent growth. Over the seven years ending in 2021-22, NTKM grew at an annual rate of only 3.5%, which is considerably lower than the growth rate of road transport .
5. Decreasing Earnings: In FY 2021-22, Indian Railways reported a loss of approximately ₹15,000 crore. This decline in net revenue has been exacerbated by rising staff costs following the 7th Pay Commission, the adverse impacts of the COVID-19 pandemic, and various social service obligations .

The Parliamentary Standing Committee has recommended that the Ministry of Railways implement measures to enhance operational efficiency, improve capacity, and increase non-fare revenues to address these challenges effectively.

Model Answer

Despite significant improvements in India’s road infrastructure, road safety continues to be a pressing issue. The government’s response to this problem has been multifaceted, aiming to improve road safety through various regulatory measures, awareness campaigns, and institutional reforms.

1. National Road Safety Board (NRSB)

The government established the National Road Safety Board in 2021 to focus on formulating safety standards for road construction, traffic management, and specific guidelines for hilly terrains. Although it was constituted in 2021, the Board’s Chairman was appointed in 2023, marking a step towards a more structured approach to road safetyotor Vehicles (Amendment) Act, 2019

This Act is a critical part of the government’s efforts to curb road accidents. It increases fines for traffic violations like over-speeding, not wearing helmets, and drunken driving. However, the implementation of these laws remains weak due to insufficient enforcement, with the traffic police-to-population ratio being a key concern.
The Good Samaritan Guidelines under the Motor Vehicles Act aim to protect citizens who assist accident victims. While the law was introduced in 2019, it has faced challenges due to a lack of awareness, with many Good Samaritans still facing harassment by police and hospitals .

2. Road Safety Awarengns

The government has promoted National Road Safety Week, launched Driving Training Centers, and conducted various other road safety initiatives to increase awareness among drivers. Despite these efforts, violations such as speeding (responsible for 72.3% of accidents in 2022) continue to be the primary cause of accidents .

Challenges

Key issues persas the violation of traffic rules, lack of pedestrian infrastructure, and poor enforcement of laws. With road safety being a significant challenge, India must focus on stricter law enforcement, infrastructure development, and widespread public education to reduce accidents and fatalities.

By addressing these concerns comprehensively, India can make significant strides in improving road safety, thereby reducing road accident fatalities.

Model Answer

Potential of High-Speed Rail (HSR) Corridors in Driving Economic Growth in India

High-Speed Rail (HSR) corridors in India are poised to play a pivotal role in boosting economic growth and development. With speeds of 300 km/h+ for HSRs and 160-200 km/h for semi-high-speed trains like the Vande Bharat Express, these corridors have the potential to drive significant changes across various sectors of the economy.

Economic Growth and Market Integration

HSR corridors enhance connectivity between regions, allowing businesses to access broader markets. This improved integration has a direct impact on GDP growth. Research suggests that a 1% increase in market access through HSR corridors results in a 0.25% rise in GDP in connected towns. By enhancing transportation, businesses can move goods more efficiently, which leads to higher productivity and economic expansion.

Boost to Industry and Employment

The construction of HSR corridors is expected to generate substantial demand for industrial activities, including construction, manufacturing, and allied sectors. For instance, in the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, 70% of the civil construction work is allocated to Indian contractors, directly contributing to the “Make in India” initiative and promoting domestic industries.

Technology Transfer and Workforce Development

The introduction of HSR in India is also a vehicle for technology transfer. The MAHSR project incorporates Japan’s Shinkansen technology, which not only improves rail safety and efficiency but also creates opportunities for workforce upskilling and job creation. Indian engineers and technicians are gaining valuable expertise through hands-on involvement with this advanced technology.

Stimulus for Satellite Towns and Tourism

HSR corridors can revitalize smaller towns and cities by improving connectivity with metropolitan hubs. For example, the MAHSR corridor links cities like Thane and Ahmedabad with smaller towns such as Bilimora and Vapi. This connectivity fosters growth in tourism, employment, and business opportunities in these lesser-developed areas.

Environmental Sustainability

Compared to cars and airplanes, HSR is far more environmentally sustainable. Studies show that HSR is up to 8.32 times less carbon-intensive than car travel and up to 11.48 times less than aviation, contributing to India’s long-term sustainability goals.

Conclusion

Despite challenges like land acquisition and cost overruns, the HSR initiative holds immense potential to contribute to India’s economic growth, technological advancement, and environmental sustainability. As these projects progress, they can help India achieve its goal of becoming a $5 trillion economy.