Q.1) Is it necessary to re-introduce the clauses of social impact assessment and reinstate the land acquisition consent?
The Top Answer for this Question is written by – Indushree
Ans) The emphasis on improving the ease of doing business has triggered a debate on necessity of Social Impact assessment and Land acquisition consent.
– SIA can introduce delay in project approval which discourages investors
– Consent of people can be affected by ill-formed opinions. People may fail to see the criticality of the project
However, SIA and consent clause ensure a fair, transparent and objective process of land acquisition.
Need for SIA
– ascertains whether the stated project actually conforms to the public purpose it intends to address – a check on greed of business houses
– assures a formal approval process and checks discretionary powers of bureaucracy
– Cost-benefit analysis anticipates unintended social implications of the project like impact on livelihood and agricultural production, pollution etc.
Need for consent
– Right to property is a constitutional right under Art 300A. Arbitrary curbing of such rights is unacceptable
– Ensures that the interests of landless labourers whose livelihoods will be affected are also addressed
– Encourages participative politics and democratic decision making
It is the unsystematic nature of process that is a matter of concern and not the process itself. It is hence important to reintroduce a systematic, time-bound SIA in Land acquisition. Also, making SIA reports public can help the citizens make a rational decision on project relevance.
Q.2) What explains the lacklustre participation of India in the global production network for “Make in India”?
The Top Answer for this Question is written by – SK
Ans) Global Production Networks (GPNs) refer to a production process where parts and components are manufactured and assembled in different countries, and the final product is integrated at one place. GPNs have a huge potential for taking forward the Make in India initiative. However, we have structural and policy challenges that hinders our participation in the GPNs. They are:
Indian policies discourage labour intensive industries, which is essential for low-cost assembling of parts and components.
Import substitution policy of post-Independent India showed bias towards capital and skill intensive industries.
Lack of integration of domestic industries with global vertical production chains.
Inward FDI in India focuses more on horizontal expansion (market seeking), rather than vertical expansion (export seeking)
1991 LPG reforms could liberalize product market policies, but factory market policies related to land and labour are still rigid and restrictive
Eternal problems like: strict regulatory architecture, tedious land acquisition process, poor trade facilitation, power shortages etc. all together discourage foreign players from entering India.
In this scenario, it is essential to leverage the comparative advantage that India has i.e. promote unskilled labour intensive industries, like China. Bringing in labour reforms as taken in Rajasthan and efforts to improve ease of doing business would be helpful.
Q.3) In the present scenario, what are the challenges faced by India in the area of Skill Development? How can we overcome these challenges?
The Top Answer for this Question is written by – Maari
Ans) In India,Skill Development plays a crucial role in tapping the demographic dividend.The challenges faced in the present scenario in this area are:
1)Quantitative dimension :Population entering in to the labour force(12.8 million per annum) is much greater than availability of training institutes(4.3 million per annum) and also lack of certified trainers.
2)Qualitative dimension:Demand-supply mismatch, the shortage of skilled workforce results in loss of productivity.
3)Lack of Vocational Training:Just over 1 in 10 adults received training.89.2% of the target population did not receive any training(NSSO data)
4)Lack of Private Investment: In spite of private sector showing interest ,its investment is not in proportionate to its potential.
5)Social Status:Social status applied to white collar jobs (eg: like IT,Banking) is making young population averse to blue collar jobs eg(Plumber, carpenter) leaving huge gaps in this sector.
The measures need to be taken to overcome this challenges are
1)Modification in the education curriculum and certifications to make it inline with industry demands.
2)Emphasis on vocational training,MSME,entrepreneurship
3)WIth more Infrastructural support and optimum use of technology to access the left out areas.
With Govt Initiatives like National Skill Development Corporation with private sector participation, Pradhanmantri Kaushal Vikas Yojana, Skill India, USTAAD which aims to train 40 cr people by 2022 can be seen as steps in right direction .
Q.4) How will the National Agriculture Market contribute to the minimum export prices?
The Top Answer for this Question is written by – DPT
Ans) National Agricultural Market which would integrate all the existing Agricultural Produce Market Committees (APMCs) across the country through an online platform.
Minimum export price is the minimum price fixed by the government for exporting a good, this tool protects national interests and checks domestic inflation.
1) The online platform would allow the bulk buyers, processor and exporters to participate directly in trading at the local mandi- which would reduce cost of transaction.
2) IT would ensure timely delivery and settlements of payment.
3) It would increase transparency and break the nexus between Mandi and APMC which was long restricting any reforms.
4) Improve supply chain and reduced wastages will further contribute to less minimum export prices.
5) Private markets will also be allowed access thereby enhancing its outreach.
6) The producer will have improved access to market related information and competitive marketing platform.
7) It would also increase his access to markets through warehouse based sales.
8) It will check fragmentation of State into multiple market areas and multiple levy of mandi fees resulting in acceleration of prices.
9) The real time change in price of produce through an online National market will help government check food based inflation by fixing the minimum export price at higher level
Integration of agri-markets across the country through the e-platform is seen as an important measure for overcoming challenges posed by the present agri-marketing system by checking inflation and boosting exports.
Q.5) Should India use both the indices, CPI and WPI, for inflation measurement and inflation targeting? Give your arguments and substantiate.
The Top Answer for this Question is written by – Jeandreze
Ans) Inflation remains a major parameter to determine the economic wellness of the nation. Of various indices, CPI and WPI have been widely used for the following advantages:-
The index does not fluctuate often therefore is a stable parameter for policy making.Moreover, the index has Pan India approach.The index helps to understand the issues faced by industry as the sales tax etc are exluded from it
The daily economic fluctuations vary from region to region . Moreover, they hit the different sections of the society in different manner.Therefore, CPI is calculated as per rural, urban , industrial workers and labour. Food, fuel prices may vary continuously therefore they are more of concern to the consumers.
But these indices suffer from some shortfalls. The services sector is not included in WPI index and is partially represented in CPI. When this sector is a major contributor of the GDP then excuding it will not give us the real picture. The imported goods are also not included in CPI
India can use both the indices depending on the purpose it serves.Urjit Patel Committee has however suggested to target CPi to 4% as they are directly hitting the consumers.But other indices eg GDP deflator, PPI are also useful to reflect other inflation components
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