IASbaba’s Daily Current Affairs – 5th May 2017

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NATIONAL/SCIENCE & TECHNOLOGY

TOPIC:

General Studies 2

General Studies 3

SAARC Satellite

Introduction

Diplomacy has crossed traditional barriers and methods today. SAARC satellite is step in the right direction to engage meaningfully with the neighbourhood sharing expertise India has in Space science and technology. Apart from all scientific benefits this will go a long way in delivering the much needed boost to ‘Neighbourhood First’ policy.

SAARC Satellite:

Issue:

As technological capabilities and innovation-led growth become important facets of economic and military power, countries have started integrating techno-diplomacy as a major piece in their broader international diplomacy edifice.

Diplomatic Significance:

The satellite is similar to previous communication satellites designed and launched by ISRO, and technologically does not constitute a major breakthrough. However, diplomatically, the South Asia satellite is significant for three reasons.

Conclusion:

India must make a concerted effort to expand the range of technologies it can use as part of its diplomatic outreach. India could also look at including biotechnology and green energy. Unfortunately, there has been a critical lag in the evolution of robust scientific and research institutions in these areas, particularly from a funding standpoint. The South Asia satellite is emblematic of a more confident and assertive India, but it is necessary to ensure that such actions are not one-off.

Connecting the dots:

 

NATIONAL/ECONOMY

TOPIC:

General Studies 2

General Studies 3

Can India emerge as a global leader in an uncertain global environment?

Introduction

The last year has seen consolidation of several trends that have impacted the economic and business environment for India.

  1. Political backlash against globalization and policy of protectionism in advanced countries – presents a unique challenge to development.
  2. Technology advancements – can disrupt conventional modes of production and consumption.
  3. Demographic changes with a growing workforce in some economies and contractions in others.
  4. Rise of new consumers and shifting supply chains.

Above are some of the systemic trends that India has to deal with.

Assessment: Is India well-positioned to capture a leadership position in an uncertain world?

Advantage India

India’s inherent advantages include its –

India, the third largest economy in purchasing power parity and the fastest growing large economy of the world, it is home to some of the most thriving markets, from automobiles and aviation to mobile connectivity and renewable energy. It is also the third largest base of startups in the technology sector.

Its vibrant entrepreneurial class is exploring avenues in new technologies and across the world. India is already a leader in several areas.

Challenges:

The country faces numerous challenges that need to be resolved through holistic strategies that incorporate cross-sectoral issues.

  1. In the immediate term, revival of consumer demand is a challenge despite MGNREGA, the 7th Pay Commission and agricultural growth. Global demand too remains subdued.
  2. The spike in NPAs of banks at over 11 per cent is hindering new investments.
  3. The administrative processes for a facilitative business climate continue to be lengthy and complex.

Recent Government policies and measures in this regard:

The Government’s policies and measures are helping to a significant extent.

Looking ahead

The critical challenge is technology advance which is ushering in a new economy. The fourth industrial revolution of technologies such as 3D printing, automation, robotics, big data, and so on will create new manufacturing processes. Increasing convergence of manufacturing, services and technology results in new products and new markets for a rising ‘shared economy’. (Is India ready for this challenge?)

There is a huge consensus that India can lead and can rapidly emerge as a global leader.

  1. India’s strengths — a large domestic market, a rich reservoir of human capital, steadfast commitment to reforms — should help the country emerge as an attractive business destination.
  2. While the country’s capability to deliver on services to the world is without question, this should be extended to improve our manufacturing capabilities as well.
  3. Manufacturing, renewable energy, electric mobility, railways and aviation present substantial opportunities for global leadership. The States should play a growing role in India’s development in the spirit of cooperative and competitive federalism. Strategic policies can change agricultural and industrial climate of a state.
  4. Protectionism is not new and India should be able to build its global presence through exports. India must internalise high standards and encourage digitisation and innovation.
  5. Industry too must step up its R&D engagement. Currently, Indian companies spend just 0.3 per cent of GDP on R&D compared to the global average of 1.5 per cent. This needs to be scaled up five times.

India’s rise in an uncertain world will be the next big development. Identifying India as one of the ‘few bright spots’ in an otherwise gloomier global economy, IMF has also projected that Indian economic growth is set to be higher than China’s.

To realise its growth potential, India needs to expand its industrial base, diversify its energy mix, and upgrade its electricity and urban infrastructure.

Unlocking India’s potential

The ‘Unlocking India’s potential’ report, commissioned by ABB India, said that the government wants to increase the manufacturing output to 25 per cent of GDP by 2022, with the creation of 100 million jobs.

To expand its industrial base, India will need to accelerate and implement reforms to improve conditions for business and attract investment. At the same time, companies will need to engage actively with trends such as high-quality manufacturing, smart manufacturing practices, automation and the Internet of Things (IoT).

With industrialisation, India will need to accelerate the expansion and upgrading of its energy sector. The country already imports 75 per cent of its oil and faces persistent shortfalls in power supply and the challenges will become even greater given that manufacturing is much more energy intensive than the services sector, the report added.

At a time of protectionist trends in the developed world, India can become the leading proponent of globalisation only if the country improves on its manufacturing.

Connecting the dots:

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