Contemporary India faces many burning issues ranging across diverse areas such as economy, environment, society, technology and international relations, whose timely and credible solution will trace the discourse of future economic growth and developmental trajectory of the nation.
At present, India is envisioned to become a game changer in the global order as it has proactively contributed to solve not only social but economic problems at the domestic as well as world level. Such leap has been contributed by advancement in Artificial Intelligence (A Human Less World), Environmental Activism; Social Integration & Harmony; Rights Based Approach to Equitable Society; Building a Strong Institutional India; Scientific Developments at the global level; Proactive Indian Diplomacy and so on. All these activities are visible at the economic front as India is now advancing to $5 Trillion Economy.
With the global rise of intelligent machines and Artificial Intelligence (AI), India stands at the brink of one of the biggest revolutions of present times- since the discovery of fire.
But technological development is a value neutral process and in the absence of credible distribution of fruits of development and prosperity, it can defeat the very idea of prosperity and inclusive development- bedrock of a welfare state. In this light, apparent transition is evident in the form of rights based approaches to development. The fundamental principle behind it is that all people are born with inalienable rights to have a dignified existence and a standard quality of life.
Moreover, to ensure harmonious sharing of the fruits of development, society needs strong institutions which can safeguard the rights of weaker and marginalised section of society. Ever increasing trust deficit in public institutions and persistent tussle of institutional autonomy vs. public interest, can cast aspersion over the credibility of institutions and participatory democratic process. The issue can get compounded by poor scientific outlook and widespread inequality, which increases the vulnerability to mobilisation and manipulation by vested interests. Therefore, institutional reform along with progressive legislation is imperative to usher in social integration, infuse scientific outlook and establish lasting peace and harmony in India.
At the same time, this harmony can also be ruptured by environmental calamities due to widespread environmental degradation in India. In order to usher in sustainable development, environmental activism has got traction in recent times.
But, all above mentioned noble developmental interventions, which aim to wipe every tear from every eye, require vast amount of sustainable finance for their credible implementation. In this wake only, India has set the target of becoming $5 trillion economy by 2024, which does look ambitious but not unattainable.
COVID-19: Disruptions And Response
The outbreak of Corona virus (COVID-19) in Wuhan, China, which began in December 2019, evolved to become a global pandemic, as declared by the World Health Organization (WHO) on March 11, 2020. It has caused havoc globally, hitting 169 countries, and affecting every continent except Antarctica. COVID-19 pandemic is notified as a ‘’biological’’ disaster by the government of India. In order to limit its spread and destruction, India adopted a strict lockdown in March 2020, which lasted till the start of June 2020 and at present a gradual unlocking process is going on. The pandemic, along with the obvious environmental, political, economic and health-related impact, also poses a serious threat to the psychological well-being of individuals and has resulted in significant behavioural changes. Moreover, it was also observed that in this precarious situation heralded by the pandemic COVID-19, the disadvantaged sections of society like women, rural people and poor migrants have taken a disproportionately heavier toll as compared to their well to do counterparts. Therefore, to counter it, governments, all over the world, are mulling over different ideas, programmes and policies- which range from technologies such as artificial intelligence to interventions like Atmanirbhar Bharat Abhiyan in India.
Strategic Policy Shifts
In the wake of pending long term policy reforms and contemporary economic shocks generated by COVID-19, the Indian economy is going through a subdued phase which is very rare for a developing economy like India. In this light, the government has taken numerous strategic policy decisions to bring the Indian economy back on track and set it on a path of sound economic growth which should be sustainable as well as inclusive.
AI: The Game Changer In The World
“Success in creating AI would be the biggest event in human history. Unfortunately, it might also be the last, unless we learn how to avoid the risks.” -- Stephen Hawking
From SIRI to self-driving cars, from banking to farming, Artificial Intelligence (AI) is progressing rapidly. While science fiction often portrays AI as robots with human-like characteristics, AI can encompass anything from Google’s search algorithms, email spam filtering, weather forecasts, autonomous weapons to IBM’s Watson. However, there is skepticism also looming large across the scientific community regarding the unintended effects of AI. Because AI has the potential to become more intelligent than any human, we have no surefire way of predicting how it will behave. We can’t use past technological developments as much of a basis because we’ve never created anything that has the ability to, wittingly or unwittingly, outsmart us. The best example of what we could face may be our own evolution. People now control the planet, not because we’re the strongest, fastest or biggest, but because we’re the smartest. If we’re no longer the smartest, are we assured to remain in control? This brings us to a point where it is prudent to understand what is AI from the scratch.
In this light, in this section, we have discussed the basics of AI, its historical evolution, its disruptive effects on different sectors of the world economy and Indian approach to AI i.e. AI for All.
Environmental Activism
Environmental activism refers to the collaborative working together of individuals and organizations, concerned for environmental degradation and conservation. Problems of depletion of groundwater resources, pollution of water bodies, non availability of drinking water, rising air pollution and wastage of resources led Indian government to pursue environment friendly policies with respect to water, air and resource utilization. This has led to environment conservation and pollution mitigation on high agenda with respect to framing of policies and in order to ameliorate the present situation.
Some prominent measures adopted so far are: Formation of Ministry of Jal Shakti, Jal Jeevan mission, Composite Water Management Index (CWMI), Jal Shakti Abhiyan (JSA), Water Conservation Fee (WCF), National Clean Air Programme, JIVAN yojana, Draft National Resource Efficiency Policy, setting up of e-waste clinic, Steel Scrap Policy and Recycling of Ship act 2019.
In Indian policy framework, environmental activism can be traced from United Nations Conference on the Human Environment (also known as the Stockholm Conference) 1972. India participated in the conference and accordingly enacted the Water (Prevention and Control of Pollution) Act of 1974, The Air (Prevention and Control of Pollution) Act of 1981, Environment Protection Act, 1986. Environmental Protection was incorporated into the Constitution by the Constitution (Forty Second Amendment) Act of 1976.
Constitutional Provisions: Article 48A was added to the Directive Principles of State Policy. It says that ‘State shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country. Similarly, Article 51A (g) was added as a Fundamental Duty which says that ‘It shall be duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers and wild life and to have compassion for living creatures’.
Social Integration & Harmony
Indian society is a cultural mosaic of different cultures and religions, which is also known for it’s unity in diversity- a cornerstone of Indian culture and civilization. At the other hand, being a heterogeneous multicultural society, it does confront with the problem of balancing autonomy and safeguards of minority rights and ensuring national integration. Social, cultural, and historical faultlines does resurface from time to time, as different state and non state actors try to harness it according to their vested interest. It is in this light the issue of striking balance between social and national integration become important for upholding the ethos and composite culture of India while maintaining unity and integrity of the nation.
Apart from safeguards enshrined in the Constitution such as Fundamental Rights, DPSPs and Fundamental Duties, the Government has taken numerous initiatives in the past to promote communal harmony and social integration in Indian society. Some of them include the constitution of the National Integration Council (1960s), National Foundation for Communal Harmony (1992), laying down of the guidelines for the promotion of communal harmony, scheme for assistance to victims of terrorist and communal violence in which onetime payment of Rs.3 lakh is given to afflicted families, The Religious Institutions (Prevention of Misuse) Act, 1988 and The Places of Worship (Special Provisions) Act 1991.
Recent initiatives for social integration by government of India includes abrogation of Article 370, Article 35, Triple Talaq Act, maintaining harmony post Ayodhya verdict, reservation for Economically Weaker Section and Citizenship Amendment Act 2019.
Rights Based Approach To Equitable Society
Development thinkers always seek to redefine development as being about more than economic growth; talking about human rights is one way to construct a more holistic definition. In this light a considerable shift to “rights-based approach” to development has intensified in recent years. International and national development agencies have increasingly begun to frame their work in terms of rights. For example: Right to life, right to work, right to food, right to freedom of speech etc. Similarly, human rights organizations have been exploring concepts and strategies of participation and how to apply them to their work. Human rights standards become valuable guides in a dynamic process like development, because the normative content of human rights includes guidance for “immediate” and “progressive” realization. For example right to work with dignity, female right to have maternity benefits, rights of disabled persons etc. The normative clarity provided by human rights removes arbitrariness from development programmes: we know what is important, what has a value in itself, and what is merely instrumental for the realization of human dignity and freedom.
Advancing To $5 Trillion Economy
India is one of the fastest growing major economies and is currently ranked as the world’s seventh largest economy. Projections of growth, over the medium term, remain encouraging and optimistic for India. The underlying strong macroeconomic framework such as benign inflationary trend, favourable Current Account Deficit (CAD) and manageable fiscal deficit are indicative of the potential of India to achieve a USD 5 trillion economy by 2025.
In light of this, the government has brought a number of reforms to lay a strong foundation to make India a five trillion dollar economy. The Corporate Tax at this time in the country is the lowest ever and this would propel a boost in the economic growth. The sweeping reforms were introduced in the Banking Sector to make it more transparent and profitable. New mineral policy, electronics policy and draft logistics policy also aim to boost core sectors, services sector and transportation infrastructure in country respectively.
Indian Diplomacy At Work
It is quite evident that in recent time under the new leadership, the foreign policy of India has taken a new trajectory. Instead of being the “balance of power”, it has turned towards “being a leading global power”.
In a significant shift, Indian foreign secretary asserted during the Raisina Dialogue 2019 that “India has moved on from its non-aligned past. India is today an aligned state—but based on issues”. Underscoring that it’s time India becomes part of the rule-making process, he argued: “In the rules-based order, India would have a stronger position in multilateral institutions.” The foreign secretary was categorical that India’s future would be largely shaped by the kind of role New Delhi manages to play in the G-20 and the Indo-Pacific, signalling clearly the changing priorities of the Indian foreign policy establishment.
India has shifted from Non-Alignment to Multi-Alignment, which is largely portrayed as an issue based engagement and strategic autonomy in international affairs. This leads to India having greater flexibility in pursuing its de-hyphenation policy with many nations.
Instances where Indian diplomacy showed this clear shift are following:
Scientific Developments In India
Knowledge has replaced capital and labour in the 21st century as the production resource. It’s utilization through application of technology creates wealth and improves life in the form of better health, education, and infrastructure. The ability to create the knowledge infrastructure, knowledge workers and enhancement of their productivity through creation of new knowledge will be the determinant of prosperity of a Knowledge Society. But as a society progress it also maintains continuity with it’s past and builds upon the knowledge created.
In this light India has continued on the path of knowledge creation which is evident by development in space technology (RISAT 2B, CARTOSAT 3, CHANDRAYAAN 2, GAGANYAAN), space cooperation with Indonesia, health innovation by ICMR, especially in cancer, international alliance like MERA India, adoption of new technologies like use of blockchain in coffee marketplace, launch of channels like DD Science and legislative measures like The Prohibition of Electronic Cigarettes Act, 2019.
Building Strong Institutions In India
The late political scientist and historian Benedict Anderson called the nation an imagined community, which brings together people who find common cause to forge a new identity. That entity functions because of its institutions. Civilisation progresses with the evolution of institutions designed by humans to govern their affairs. Institutions of electoral democracy have evolved over the centuries, with notable innovations in the U.K., France and the U.S. that provided models for electoral democracies everywhere. These institutions are not made only of bricks and mortar, though these are necessary; they become meaningful if they represent the collective will of the people, drawn from values that underpin the idea of that nation. Physical structures, like parliaments and courts, matter; how they function matters even more.
The legislature, the army, the judiciary and the media are important structures of the nation. The first sets the rules, the second defends the state, the third determines what is right and what’s wrong, and the fourth blows the whistle when things go wrong. They have their roles and boundaries. Institutions are strengthened or weakened depending on how the individuals temporarily in charge of the institutions act. By these yardsticks, democracy is shining in India. With a strong government at the Centre, Parliament has passed a slew of big laws recently in the field of medical education, transport, Defense, human rights and Consumer Protection.
Social justice denotes the equal treatment of all citizens without any social distinction based on caste, colour, race, religion, sex and so on. It means absence of privileges being extended to any particular section of the society, and improvement in the conditions of backward classes (SCs, STs, and OBCs) and women. Social Justice is the foundation stone of Indian Constitution. Although social justice is not defined anywhere in the Constitution, it is an ideal element of feeling which is a goal of the Constitution.
The conception of social justice also encompasses firm commitment to the protection of human rights and civil liberties. Disabilities and problems of other groups like the physically disabled, child labour, tribals and those affected by environmental pollution also form the agenda of social justice. And these are India’s most critical problems. These are at the root of much of the political unrest, social and ethnic conflicts, and the growth of collective violence and the weakness of democratic structures in our country.
Even after 72 years of independence, twelve Five Year Plans, Vision Document 2030, hundreds of plans, policies, acts and amendments, strategies leading to a veritable forest of rules offering a variety of special facilities to the underprivileged ranging from scheduled castes and tribes to women, in matters of education, employment, housing, etc. social justice is far from a reality.
Social Justice & Empowerment
According to Socio Economic Caste Census (SECC) 2011, India houses 2.68 crore Person with Disabilities (PwDs), 10.4 crore person above 60 years of age, 27.1 crore using any form of drug etc. These numbers are worrying, as special policy directives are required to ensure social justice for these communities. Social Justice is a revolutionary concept which provides meaning and significance to life and makes the rule of law dynamic. It aims at empowering the weaker sections and providing justice to them of the historical wrongdoings. The Department of Social Justice & Empowerment in India is entrusted with the empowerment of the disadvantaged and marginalized sections of the society. The target groups of the Ministry are: Scheduled Castes, Other Backward Classes, Senior Citizens, Victims of Substance Abuse, Denotified, Nomadic and Semi-Nomadic Tribes, Beggars, Transgender etc.
The Ministry has been implementing various programmes/schemes for social, educational and economic development of the target groups. As a result there has been considerable improvement in the welfare of these groups. It has come out with various schemes like Inclusive India Initiative, Accessible India campaign, Rashtriya Vayoshri Yojana etc. to address the special needs of these communities.
Minorities
The treatment meted out to minorities in India plays an important role in projecting vibrant democratic picture of our country. India considers Muslims, Jains, Sikhs, Parsis, Buddhist and Christians as minorities. Rejecting the dubious ‘Two Nation Theory’, India was born secular. Abiding by secularism, various initiatives have been running to ensure equal treatment and protection of rights of the minorities. Schemes like Pradhan Mantri Jan Vikas Karyakram, Jiyo Parsi, Upgrading the Skills and Training in Traditional Arts/Crafts for Development (USTTAD) scheme not only ensures empowerment of minorities but also ensures conservation of their culture & heritage. Issues like relative educational backwardness of Muslims, decreasing population of Parsis, instances of communal violence continues to haunt Indian thread of secularism.
Law & Justice
From time immemorial human civilization are governed by a set of principles/rules/regulations. Be it Kautiliya’s ‘Arthshastra’ or Machiavelli’s ‘Prince’, the importance of these principles governing society has been indisputable. The society to govern in a systemized manner requires proper functioning of law machinery, this proper functioning means ensuring timely justice to all.
Indian law and justice system have been marred by complexity of laws, expensive and delayed justice, high pendency of cases in judiciary, continuation of outdated laws, etc. The response from Indian administration (policies like e-courts, Nyaya Mitra, etc.) has been partially successful.
Women & Child Development
72 years since independence India continues to be a country in world headlines for poor women safety, high infant mortality rate, and gruesome patriarchal practices. Even though Indian government is focused in ensuring healthy child and empowered women (with schemes like ICDS, Beti Bachao Beti Padhao, promoting women cooperatives, etc.), what’s that not falling in place? It could be poor administrative practices or deep patriarchal mindset unwilling to heed to modern norms, or may be both. Proper targeted policies in a mission mode, social audit of welfare schemes, ensuring gender sensitivity in policy formulation, women participation in decision making, etc. are few but important measures that the state can adopt to ensure proper women and child development.
Tribal Affairs
8.63% (SECC, 2011) of Indian population consists of Schedule Tribes (STs). The tribal communities in India have come to be conceptualized primarily in relation to their geographical and social isolation from the larger Indian society. Owing to their historical isolation, they enjoyed autonomy in management of land, forest and its resources. But with the advent of Britishers and passage of various regressive policies like Land Acquisition Act (1894) and Indian Forest Act (1927), these tribes were deprived of their traditional rights over land, forest and other natural resources. Post-independence the primary responsibility of the government was not just to ensure restoration of these Rights but also to conserve the forest and use it efficiently for the development of the country. Various policies were formulated to address tribal issues of illiteracy, social alienation, mainstreaming tribal culture, ensuring healthy lifestyle and at the same time conserving the tribal ethos & practice along with using forest resources for national development. The struggle to balance the above aspect continues.
Education & Human Resource Development
“Education is the most powerful weapon you can use to change the world” - Nelson Mandela.
The above famous quote sums up the cardinal importance of education and it is all the more true as far as India is concerned. India is passing through a stage where its productive population (15 to 64 years age group) is highest (65%). To reap the benefits of demographic dividend, education and skills are two most important factors India needs to focus on.
The sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users. Number of colleges and universities in India reached 41,901 and 993, respectively in 2017-18. India had 36.64 million students enrolled in higher education in 2017-18. Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18. The country now has become the second largest market for e-learning after the US.
With 74.04% literacy rate, India is progressing in the right direction as far as its education policy is concerned. Initiatives like Right to Education Act, Sarva Siksha Abhiyan and Mid Day Meal Scheme have ensured universalization of elementary education whereas initiatives like IMPRESS, GIAN, and IMPRINT are making higher education accessible and lucrative.
The agenda of the National Policy on Education 1986, modified in 1992 (NPE 1986/92), is still incomplete in its implementation. Also, the Constitution (Eighty-sixth Amendment) Act, 2002 that inserted Article 21-A in the Constitution of India envisages free and compulsory education for all children in the age group of six to fourteen years as a Fundamental Right. Later, Right of Children to Free and Compulsory Education Act, 2009 (RTE Act) came into force in April 2010.
Globalization and the demands of a knowledge economy and a knowledge society call for emphasis on acquisition of new skills by learners on a regular basis, for them to ‘learn how to learn’ and become lifelong learners. Young learners today belong to a generation that is born and raised in technology-rich environments. They will use technologies that haven’t been invented so far and enter jobs that don’t exist at present.
Lacunas in elementary education with respect to quality educational outcomes and in higher education with respect to lack of job oriented skills still persist. Until and unless these deformities are addressed, India’s dream of reaping in the demographic dividend would remain in limbo.
General Elections 2019 in India proved to be “largest festival of democracy”. Figures like more than 900 million voters; a million polling booths, etc. manifest this fact. Election in a democracy provides legitimacy to the elected government. This elected government would then administer a state. This state consists of various organs and the study of these facets is known as Polity.
Indian Polity is a discipline that includes a wide range of topics such as the development of the Constitution, Citizenship, Fundamental Rights, Directive Principles, the Executive, the President, the Prime Minister and Council of Ministers, Judiciary, State Governments, Local Government, Election system, and many more.
Some recent developments in Indian Democracy like General Elections of 2019; introduction of amendments in Citizenship Act, 1955; revoking of Article 370 and Article 35A of the Indian Constitution; several protests on the issue of National Population Register and National Register of Citizens etc. have made such topics important for understanding Indian Polity.
Electoral System
The electoral system is a political device through which the modern states create amongst their citizens a sense of involvement and participation in public affairs and associate themselves in the formation of a genuine representative government. The credibility of any democracy depends upon its ability to conduct free and fair election.
After India attained Independence in August 1947, the first General Elections to the Lok Sabha and Vidhan Sabhas were held between October, 1951 and March, 1952 with universal adult suffrage.
Article 324 of the Indian Constitution provides for the setting up of Election Commission as an independent constitutional authority. Election Commission of India (ECI) in this pursuit have come up with measures like scrutinizing electoral bonds, advocating cleansing of political parties to ensure decriminalization of politics, etc. These measures would ensure a just and healthy electoral system in the country.
Parliament of India regulates and streamlines the election procedure through the laws like the Representation of People Act of 1950 and 1951 and the Delimitation Act of 2002 along with the Rules and Orders made there under.
Fundamental Rights
The Right to Privacy judgment has opened the contours of Fundamental Rights, thereby widening the scope and understanding regarding the concept. The Fundamental Rights (like - Right to Equality, Right to Freedom, Right against Exploitation, Right to Freedom of Religion, Cultural and Educational Rights, and Right to Constitutional Remedies) have intrinsic value and hence in true sense reflects the picture that individuals possess basic Human Rights independently of any Constitution by reason of the basic fact that they are the members of the human race. Their purpose is to withdraw certain subjects from the area of political controversy and to place them beyond the reach of majorities and officials and to establish them as Legal principles to be applied by the courts. They are also considered as a limitation on the power of the state. In India, Fundamental Rights have evolved over time.
Co-operative Federalism
Co-operative federalism is defined in terms of federal-regional co-operation and interdependence, especially with reference to the schemes of development, predominantly financed by the federal government and administered primarily by provincial governments. It has become a fact of life in all federations around the world, for India though the concept is still in its infant stage. Events like replacing Planning Commission with NITI Aayog, passage of GST, programmes like Aspirational Districts inducing sense of healthy competition amongst states are few but important steps promoting the notion of cooperative federalism in India.
Citizenship
Citizenship Amendment Bill and the nationwide protests have brought the notion of citizenship back into news. Citizenship denotes the link between a person and a state or an association of states. Possession of citizenship is normally associated with the right to work and live in a country. A person with citizenship in a state is called a citizen of it. In India, Article 5 to Article 11 of the Constitution talks about various aspects of citizenship. Apart from it, Citizenship Act, 1955 and its various amendments list down the manner in which citizenship could be acquired and revoked in the country.
Noted Judicial Verdicts
The Supreme Court of India is final interpreter and custodian of the Constitution. Through ages, the Indian Constitution has evolved mainly due to judicial pronouncements. Be it the Keshavananda Bharti case or the Minerva Mill case, each of these pronouncements had profound impact in the manner laws were interpreted and authority exercised by executive. These judicial pronouncements are not immune to criticism and are often being criticized on the grounds of judicial overreach.
Democratic decentralization is the development of reciprocal relationships between central and local governments and between local governments and citizens. It addresses the power to develop and implement policy, the extension of democratic processes to lower levels of government, and measures to ensure that democracy is sustainable. It politically means the transfer of authority- legislative, judicial or administrative - from a higher level of government to a lower level.
India witnesses this concept since ancient times as Rig Veda speaks about two basic political organisations or assemblies namely “Sabha” and “Samiti”; these are examples of democratic decentralization in India. Also, during Gupta and Chola period, there was an elaborate arrangement for local administration.
After Independence, Indian Constitution (and Mahatma Gandhi) advocated for decentralization of both political and economic powers; which finally took its shape by the Constitution (73rd Amendment) Act, 1992 (commonly referred to as the Panchayati Raj Act) went into effect on April 24, 1993, and the Constitution (74th Amendment) Act, 1992 (the Nagarpalika Act), on June 1, 1993. It added Part IX and Part IXA in the Constitution and titled “The Panchayats” and “The Municipalities”. At present, this governance system has completed 25 years of its establishment (since 1992-93). This effort in decentralisation in India represents one of the largest experiments in deepening democracy.
Introduction To Local Bodies
In India about 68.9% population lives in villages, thereby making the administration of villages and semi-urban areas imperative. Village and semi-urban administration is not new, as from time immemorial villages have been self-sustaining units.
On the notion of Village Swaraj (Village Self-Governance), Mahatma Gandhi once famously remarked, “My idea of Village Swaraj is that it is a complete republic, independent of its neighbours for its vital wants, and yet interdependent for many others in which dependence is a necessity”. A step towards realizing Gandhian notion of village empowerment was taken in 1992-93 with the passage of 73rd and 74th Constitutional Amendment Acts.
It’s been more than 25 years since awarding Constitutional status to the local bodies, there have been plenty of highs like - As of 2018, 267428 panchayats and 4657 urban local bodies are functional of which 1.35 million women, 54000 Schedule Caste and 34000 Schedule Tribes representatives are heading these local bodies. The genesis to any form of empowerment of weaker section starts with their ‘Political Empowerment’; PRIs have ensured that.
Empowerment of weaker sections is mooted for varied reasons like they are better rehearsed with the condition of particular section, averse to certain vices (it is generally seen that women representatives avoid approving alcohol & allied services establishment) etc.
Chhavi Rajawat (Rajasthan), India’s youngest sarpanch, Sushma Bhadu (Haryana), have been raising voice against patriarchy and hundreds like them are leading with their innovative and exemplary leadership style bringing about transformational changes. Similarly ‘Mawlynnong’ (Meghalaya) being Asia’s cleanest village, ‘Dharnai’ (Bihar) being fully solar powered village etc. are few but important examples of India’s growing local bodies influence.
Panchayati Raj & Rural Development
Rural development is imperative in India as majority of population lives in villages (almost 69%) and also it lags far behind in development mainly due to historical reasons. Hence, post-independence, the priorities of the government have been to revive ancient rural model of self-sustained economy.
An average of 7-8% of budgetary allocation is guaranteed for rural development as seen from past governments. This shows the importance and priorities of rural development amongst governments.
8% of Union Budget 2019 expenditure has been allotted to Rural Development. It covers aspect from ensuring Right to Work under MGNREGS to ensuring infrastructural development under PMGSY and Rurban Mission.
To ensure proper development, various programmes like Community Development Programme (CDP) and National Extension Service (NES) were launched but they failed miserably. The reason for failure was poor mobilization of people by district administration. The failure of district administration in ensuring development administration led to the urge of reviving the ancient notion of the third tier of administration in villages i.e. Panchayats.
First step was with the establishment of Balwant Rai Mehta Committee (1957) to study community development programme. It recommended panchayati raj institutions at the local level and since then various committees and their recommendations finally led to the passing of 73rd and 74th Constitutional Amendment Acts resulting into the formation of Panchayati Raj Institutions.
25 year post the Constitutional status, issues like poverty & hunger, rural distress etc. are still widely prevalent in the society. It is mainly due to inefficiency of, the PRI systems and the inability of district administration.
Various reforms like making social audit mandatory, performance audit of welfare schemes etc. have been mooted to overcome the deformities of prevailing PRIs and ensuring rural development.
Urban Affairs & Administration
Our ears have been reverberating with buzzwords like ‘Swachh Bharat’, ‘Metro Rail Extension’, ’Green Mobility’, ‘Smart Cities’ etc. for the past 5 years. All these buzzword are related to urban affairs. The Ministry of Housing and Urban Affairs (MoHUA) was allocated around Rs 50,000 crore for the fiscal year 2020-21, a hike of nearly 18 per cent from the current financial year 2019-20. Urban affairs and its administration stands as one of the areas of highest priority.
31.1% (As per Socio Economic Caste Census, 2011) of the Indian population is concentrated in urban areas. India ranks third in the world with regard to urban growth (first China and second U.S.A.) even though it stood second in the size of population.
Lust for urban life and quest for better living has accelerated the pace of urbanization and the municipal institutions have been finding it difficult to meet the challenges posed by the urbanization.
Ministry of Housing and Urban Affairs, thus has been entrusted with the responsibility of countering the ills plaguing urban areas like overcrowding, waste disposal, pollution, traffic congestion, growth of slums, housing needs etc.
The policy measures and schemes thus are built on the theme of ensuring ‘sustainability and prosperity for all’.
National security is the requirement to maintain the survival of the state through the use of economic power, diplomacy, power projection and political power. Initially focusing on military might, it now encompasses a broad range of facets, all of which impinge on the non-military or economic security of the nation and the values espoused by the national society. Accordingly, in order to possess national security, a nation needs to possess economic security, energy security, environmental security, etc.
Internal Security
National Security Environment of a country is determined by its geographical attributes, historical legacy, socio-economic circumstances as well as regional and global developments. All the nations of the world are concerned with their security in the modern phase of International relations as it directly threatens its legitimacy in the wake of increased social unrest and turmoil in the world, be it due to armed conflict or increased wealth inequality in the world.
External Security
India today is in the fortunate position of facing no existential threat to its security. In that respect India is better placed today than it was in the past. But this cannot obscure the fact that the international environment in which India makes its foreign policy and national security decisions has worsened recently. An overarching framework of India’s national security has to take cognisance of military and non-military dimensions in term of both external threats and internal challenges to its territorial integrity and national unity. Some of the challenges include - Twin threats of Fundamentalism and Terrorism in South Asia; Intelligence in War against Terrorism; Threats and Vulnerabilities to India’s Information Infrastructure; Leadership in the War on Terrorism; and Cross-border threats.
Defence Security
India is often considered as the fastest growing economy in the world and is getting stronger through its influence in international affairs. India is the world’s 2nd largest military force after People’s Republic of China. India has the world’s largest volunteer military of over 5.1 million personnel and the total budget sanctioned for the Indian military for the financial year 2019 is above 60 billion US dollar.
Compared to around 17% in 2014-15, this year’s (2020-21) defence budget comprises 15.5% of government expenditure and only 2.1% of gross domestic product (GDP), as compared to 2.28% of GDP in 2014-15.
Defence is one of the major spending sectors in the Indian economy. The geographical and topographical diversity, especially the 15,000 km long border which India shares with seven neighbouring countries poses unique challenges to the Indian Defence Forces.
The Government has opened up the Defence industry for private sector participation to provide impetus to indigenous manufacturing. The opening up of the industry also paves the way for foreign original equipment manufacturers to enter into strategic partnerships with Indian companies.
A Defence Export Strategy has been formulated with a view of facilitating Defence Public Sector Enterprises (DPSUs) and private defence players in exploring business opportunities abroad. 100 per cent FDI (foreign direct investment) is allowed in Defence industry; wherein 49% is allowed under automatic route and beyond 49% through Government route.
India has changed gear to transform its originally import-led defence industry into one that is self-reliant in nature.
Cyber Security
Cyber Security is the practice of protecting our cyber space (critical infrastructure) from attack, damage, misuse and economic espionage. These attacks are usually aimed at accessing, changing, or destroying sensitive information; extorting money from users; or interrupting normal business processes.
The Cyberspace as an independent theatre of war is about attacks that compromise the capability to use these facilities: they cannot be prevented by the security services in isolation. The defence of cyberspace necessarily involves the forging of effective partnerships between the public organisations charged with ensuring the security of cyberspace and those who manage the use of this space by myriad users like government departments, banks, infrastructure, manufacturing and service enterprises and individual citizens.
According to an estimation report, the cyber security market in India is expected to grow from USD 1.97 billion in 2019 to USD 3.05 billion by 2022, at a compound annual growth rate (CAGR) of 15.6%—almost one and a half times the global rate. While many factors are contributing to this high growth rate, three factors are significantly driving the cyber security demand market in India—digital growth, increase in cyberattacks and stringent regulatory mandates.
The study estimates that the market for cyber security products in India will grow at a higher rate than that for services.
Security operations will continue to be the most dominant category, occupying 38% of the service mix driven by prescriptive regulations and the need to strengthen resilience capabilities.
India, as a country, needs to invest in R&D and developing skills for IoT & OT Security as the repercussions can be hazardous for everything from businesses to government bodies and the ongoing digital adoption within the country.
This becomes critical as Digital India aims at transforming India into a digitally empowered society while the smart city concept aims at developing 100 smart cities in India.
India ranks third among the most attractive investment destinations for technology transactions in the world. The Department of Science & Technology, a department within the Ministry of Science and Technology has reiterated that technology is a strong priority area for the government and it aims to make people science-centric. Modern India has had a strong focus on science and technology, realising that it is a key element of economic growth. India is among the topmost countries in the world in the field of scientific research, positioned as one of the top five nations in the field of space exploration. The country has regularly undertaken space missions, including missions to the Moon and Mars with launching vehicles like Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV) and Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk III). India is likely to take a leading role in launching satellites for the SAARC nations, generating revenue by offering its space facilities for use to other countries.
The Indian Renaissance, which coincided with our independence struggle, at the dawn of 1900s witnessed great strides made by Indian scientists. This innate ability to perform creatively in science came to be backed with an institutional setup and strong state support after the country’s independence in 1947. Since then, the Government of India has spared no effort to establish a modern S&T infrastructure in the country. The Department of Science and Technology plays a pivotal role in promotion of science and technology in the country.
The Indian government has focused on the development in various fields with the advancement in Science and Technology like higher education; scientific research; technological development; agricultural system; space science and technology; medical science and technology; infrastructure; Information and communication technology; various fields of engineering (including software, chemical, mechanical, civil, electrical, electronic, etc.).
Some of the real life examples of application of Science and technology includes CCTV Camera at various locations (especially at public places) to provide a sense of security to the people; reduce in communication gap with mobile and telephones; jobs of the police has become easier; most of the villages in India have electricity, road, and can avail for essential facilities, etc.
New Developments & Day-To-Day Science
By linking science more closely with society, it aims to ensure that citizens are kept informed of developments in science. It also underscores the role scientists play in broadening our understanding of the remarkable, fragile planet we call home and in making our societies more sustainable. Humans have always been greatly affected with the developments in new technology. It is a prevailing fact that new information technology not only benefits programmers, database managers, hardware engineers and network analysts but it also benefits the common user. Also, the new developments in science are never stopped and it continuously evolves as per the need and the betterment of the human being. Also, in 2019, World Science Day was devoted to the theme of Open Science – a burning issue in the scientific community which is gaining increasing attention by the non-scientific community as well.
Space
Making rapid strides in multiple space domains, India has created several significant milestones in space technology. Indian institutions engaged in space research have demonstrated their technological prowess, earning global recognition for the country. In recent years, India has concentrated more on complex application satellites and advanced rockets.
The space research activities were initiated in India during the early 1960’s, when applications using satellites were in experimental stages even in the United States. With the live transmission of Tokyo Olympic Games across the Pacific by the American Satellite ‘Syncom-3’ demonstrating the power of communication satellites, Dr. Vikram Sarabhai, the founding father of Indian space programme, quickly recognized the benefits of space technologies for India.
The current place of prominence which India enjoys had humble beginning during late 1960s when INCOSPAR (Indian National Committee for Space Research) was initiated under the leadership of Dr. Sarabhai and Dr. Ramanathan.
Defence
India has the third largest military in the world and is the sixth biggest defence spender. India is also one of the largest importers of conventional defence equipment and spends around 30% of its total defence budget on capital acquisitions.
Today India’s Armed Forces are well-equipped and are growing stronger with scientific and technical support of Defence Research and Development organisation (DRDO) which aims to make the country self-sufficient in technologies needed for defence. Actively engaged in well planned projects in the field of science and technology, also supports in saving foreign exchange as indigenisation in armament technology is the major motive of DRDO.
The Defence Research and Development Organization or DRDO was set up in 1958 and hence, it is the supreme body of researching, monitoring, regulating, and administering the India Defence Research and Development Program.
At present, DRDO is a network of more than 50 laboratories located in different cities of the country. The DRDO specializes in the following fields − Aeronautical Engineering; Electronics; Armaments; Engineering system; Combat vehicles; Missiles; Advanced computing and simulation; Life science; Special materials; Agriculture; Training, etc.
Universal Health
The goal of universal health coverage (UHC) as stated in the UN Sustainable Development Goals (SDGs) is one of the most significant commitments to equitable quality healthcare for all. India moved a step closer towards our commitment to the SDGs, when in 2018 the country launched a national health protection scheme, Ayushman Bharat, to achieve UHC.
There is a strong global momentum on Universal Health Coverage, re-enforced by the Tokyo Declaration of December 2017. The core principles of UHC are a part of National Health Policy 2017. Our country has witnessed many incremental changes and India@70 is an opportune time for transformational approaches to improve the health of citizens. This provides a ‘once in 15 year opportunity’ to transform health of the people with renewed zeal.
Global estimates reveal that only half of all countries have the requisite health workforce required to deliver quality healthcare services. Furthermore, the twin burdens of communicable and non-communicable diseases (NCDs) are projected to generate additional demand for 40 million health workers globally by 2030.
India, too, requires twice the number of doctors, triple the number of nurses and quadruple the number of paramedic and support staff. Worse still, even if we meet the WHO’s benchmark of one doctor for every 1,000 people in the next six years, there is a large imbalance among individual states.
Nutrition & Diets
In the last 20 years in India, there have been no significant changes in patterns of dietary intake. Cereals remain the staple food in India providing most of the energy intake. Since the seventies the consumption of foods like pulses, roots and tubers has fallen, while that of other foods likes sugar, “jaggery” (unrefined brown sugar), fats and oils and green leafy vegetables have slightly increased. The average Indian diet remains largely deficient in green leafy vegetables, meat, fish, milk and milk products.
India’s child malnutrition rates have steadily decreased since 2006. The proportion of underweight children has fallen from 42.5% a decade ago, to just under 30% now. Similar improvements have been found when it comes to stunting, wasting and other parameters of malnutrition.
The nutritional status and developments in India has a challenging dynamic; the differences and cultural compositions of Indian states has definitely made the changing landscape of nutrition in India, very complex. It is interesting to note that overall urban child malnutrition rates are lower than that of rural India.
According to the National Family Health Survey 4 (NFHS 4), 38.4 per cent of children in India are stunted and 21 per cent wasted. This grim situation continues to haunt the nation despite strong constitutional support, legislative policies, and plan and programme commitments, like the Integrated Child Development Services (ICDS) and Mid-Day Meal Scheme.
While Malnutrition and Infant Mortality Rates remain high, the budget allocated for minors, constituting 40% of India’s population remains at a meagre 4%.
Communicable & Non-Communicable Diseases
Non-Communicable Diseases (NCDs) are one of the major challenges for public health in the 21st century, not only in terms of human suffering they cause but also the harm they inflict on the socioeconomic development of a country. NCDs kill approximately 41 million people (71% of global deaths) worldwide each year, including 14 million people who die too young between the ages of 30 and 70. The majority of premature NCD deaths are preventable.
According to World Health Organization (WHO) projections, the total annual number of deaths from NCDs will increase to 55 million by 2030, if timely interventions are not done for prevention and control of NCDs.
In India, nearly 5.8 million people (WHO report, 2015) die from NCDs (heart and lung diseases, stroke, cancer and diabetes) every year or in other words 1 in 4 Indians has a risk of dying from an NCD before they reach the age of 70.
In a report “India: Health of the Nation’s States” by Ministry of Health and Family Welfare (MoHFW), Government of India (GoI), it is found that there is increase in the contribution of NCDs from 30% of the total disease burden - ‘disability-adjusted life years’ (DALYs) in 1990 to 55% in 2016 and also an increase in proportion of deaths due to NCDs (among all deaths) from 37% in 1990 to 61% in 2016. This shows a rapid epidemiological transition with a shift in disease burden to NCDs.
Biotechnology
India is one of the most sought-after destinations for biotechnology and has been growing rapidly with generous investments from foreign, supportive government policies, experienced workforce, and increasing demand. India’s biotechnology industry is in an excellent position to transition into Bio-economy. The compounded annual growth rate of biotechnology in India is 20%.
IT Sector
In India, the software boom started in the late 1990s. The sector has increased its contribution to India’s GDP from 1.2% in 1998 to 7.7% in 2017. The IT-BPM (Information Technology – Business Process Management) sector in India stood at US$177 billion in 2019 witnessing a growth of 6.1 per cent year-on-year and is estimated that the size of the industry will grow to US$ 350 billion by 2025.
India’s IT & ITeS (IT related electronic services) industry grew to US$ 181 billion in 2018-19. Exports from the industry increased to US$ 137 billion in FY19 while domestic revenues (including hardware) advanced to US$ 44 billion. IT industry employees 4.1 million people as of FY19.
The United States accounts for two-thirds of India’s IT services exports. IT-BPM sector accounts for largest share in total Indian services export (45%). Also, this sector accounts for 55% of the total global outsourcing market. There are 1000 offshore development centres in more than 80 countries. Indian IT & BPM industry is expected to grow to USD 300 billion by 2020. IT - BPM sector constitutes 9.3% of India’s GDP. The IT industry has more than 16000 firms; of which 1000+ are large firms with over 50 delivery locations in India. The IT-BPM industry is the largest private sector employer – delivering above 4.1 million jobs.
With the addition of more than 1,300 startups in financial year 2019-20 so far, India continues to reinforce its position as the third-largest startup ecosystem in the world, according to IT industry body Nasscom.
The environment of India comprises some of the world’s most biodiverse ecozones. The Deccan Traps, Gangetic Plains and the Himalayas are the major geographical features. The country faces different forms of pollution as its major environmental issue and is more vulnerable to the effects of climate change being a developing nation.
“India 2030: Vision for an Environmentally Sustainable Future”, deals with a broader debate on the implications of rapid economic growth on environmental sustainability and the need to rethink India’s current institutional arrangements in light of promoting long-term environmentally sustainability.
The primary objectives of the study are to identify environmental challenges, opportunities and constraints to growth that will emerge in India over the next few decades and suggest policy responses and develop strategies to harmonize the twin objectives of growth and environmental sustainability in urban and ecologically fragile hill areas.
Also, India has laws protecting the environment and is one of the countries that signed the Convention on Biological Diversity (CBD) treaty. The Ministry of Environment, Forest and Climate Change and each particular state forest departments plan and implement environmental policies throughout the country.
Sustainable Development
Sustainable Development as a concept was first mooted in 1987 – Brundtland Commission Report, and is defined as ‘the ability of meeting the requirement of the present generation without compromising the ability of future generation to meet their own needs’. The term gained significance post the adoption of Sustainable Development Goals (SDGs). India has played an important role in shaping the Sustainable Development Goals (SDGs). Therefore, it is no surprise that the SDGs are mirrored in the country’s national development goals. As such, India has been effectively committed to achieving the SDGs even before they were fully crystallized. For implementing the SDG agenda, the Government of India has launched several ambitious programmes like Green Skill Development programme, Sustainable Development Framework, SDG Index, etc.
Biodiversity
India is one of 18 mega bio-diverse countries in the world. With only 2.4 per cent of the earth’s land area, it accounts for 7-8 per cent of the world’s recorded species. Home to 96,000 species of animals, 47,000 species of plants and nearly half the world’s aquatic plants, India’s management of its natural resources is crucial to protecting global biodiversity. Conservation and sustainable use of biodiversity have been an integral part of Indian ethos. The varied eco-climatic conditions coupled with unique geological and cultural features have contributed to an astounding diversity of habitats, which harbor and sustain immense biological diversity at all levels. Threats to bio-diversity include invasion of exotic species, pollution, over-exploitation of resources, etc., though measures like establishment of protected areas, limiting exploitation, international collaboration to preserve bio-diversity have been able to arrest the speeding degradation.
Indian Forest
As per India State of Forest Report (ISFR) 2019, forest cover in India is around 24.56%, which is short of 33% (decided in National Forest Policy). Forest cover plays a crucial role in the maintenance of natural ecology and economy with particular reference to soil, water and environmental conservation. Majority of the population dwell in rural area where they rely on forest for fulfilling the socio-economic, cultural, religious and medical needs. Thus, it becomes an imperative of the State to look after the forest cover situation in India. Measures like National Afforestation Programme, Environment Impact Assessment of developmental projects, etc. are steps in the right direction.
Pollution
Eleven out of the top 12 cities with the highest levels of particulate pollution are located in India (WHO Report), Eighty-six per cent of Indian bodies of water are deemed “critically polluted” (Study by Centre for Science and Environment), 12.5% of annual deaths are credited to air pollution – these facts highlight the state of pollution in India. Realizing this, the Indian government has come up with various measures like – National Clean Air Programme, National Air Quality Index, promoting electric transportation, scientific treatment of water, etc. These measures though are in the right direction, need to be accelerated and along with it awareness regarding ills of pollution be created to counter this menace effectively.
Climate Change & Environment
India’s rapidly growing population, along with increased economic development, has placed a strain on the infrastructure, and ultimately on the country’s environment. Environmental conditions, in terms of degradation of the natural resource base and increasing industrial pollution, continue to worsen. While deforestation, soil erosion, and land degradation are hindering economic development in rural India, rapid industrialization and urbanization in India is causing serious concerns. Measures like National Action Plan on Climate Change, adhering to Paris Climate Agreement norms via NDC, Indian Cooling Action Plan, etc. are steps in the right direction.
Indian Rivers
River is considered as the lifeline of India. The Indian sub-continent is endowed with several large rivers which have distinctive hydrology and sediment transportation due to climatic settings. Many of these rivers have attracted international attention for the last several decades and continue to do so for their unique features. Some river basins are also responsible for tapping of oil and natural gas which also contribute to the list of usefulness of these rivers. But despite these explicit significance, rivers continue being polluted. Measures by Indian government like Namami Gange, National River Conservation Plan, establishment of sewage treatment plants (STPs), etc. are steps in the right direction to maintain the immaculateness of Indian rivers.
Sanitation & Waste Management
Over 377 million urban people live in 7,935 towns and cities and generate 62 million tonnes of municipal solid waste per annum. Only 43 million tonnes (MT) of the waste is collected, 11.9 MT is treated and 31 MT is dumped in landfill sites. The ill-impacts of poor waste handling are plenty. Thus, Sanitation & Waste Management becomes one amongst the basic essential services required to keep urban centres clean. Keeping this in mind, Indian government has come up with measures like specific waste disposal acts, abiding to international conventions, banning single-use plastics, etc. thereby helping to keep our environment clean.
Disaster Management
More than 58.6 per cent of the Indian landmass is prone to earthquakes of moderate to very high intensity; over 40 million hectares (12%) of its land is prone to floods and river erosion; close to 5,700 kms, out of the 7,516 kms long coastline is prone to cyclones and tsunamis; 68% of its cultivable area is vulnerable to droughts; and, its hilly areas are at risk from landslides and avalanches. Moreover, India is also vulnerable to Chemical, Biological, Radiological and Nuclear (CBRN) emergencies and other man-made disasters. These facts call for establishment of an effective disaster management apparatus in the country. Disaster Management Act, National Disaster Management Plan and National Disaster Management Policy indicate positive state intervention.
India’s foreign policy seeks to safeguard the country’s enlightened self-interest. The primary objective of India’s foreign policy is to promote and maintain a peaceful and stable external environment in which the domestic tasks of inclusive economic development and poverty alleviation can progress rapidly and without obstacles. Given the high priority attached by the Government of India to socio-economic development, India has a vital stake in a supportive external environment both in our region and globally. India, therefore, seeks a peaceful periphery and works for good neighbourly relations in its extended neighbourhood. India’s foreign policy also recognizes that the issues such as climate change, energy and food security that are crucial to its transformation are global and require global cooperative solutions.
Act East Policy
In November 2014, Look East policy was renamed as “Act East” policy by the Prime Minister Narendra Modi in the 9th East Asia Summit in Nay Pyi Taw, Myanmar. India’s Look East (now Act East) policy in reality is an effort to cultivate extensive economic and strategic relations with the nations of Southeast Asia in order to bolster its standing as a regional power and a counterweight to the strategic influence of the China. Initiated in 1991, it is marked as a strategic shift in India’s perspective of the world. It was developed and enacted during P.V. Narsimha Rao’s government.
‘Think West’ Diplomacy
On the lines of Look East Policy, India adopted Look West Policy in 2005. However, the policy did not get much attention until frequent visits of Prime Minister of India to a number of West Asian countries which enhanced our engagement with West Asia. The present Foreign Minister S. Jaishankar coined the word as ‘Think West’ Diplomacy (When he was working at Secretary Level).
For decades, India was non-active player in West Asian region-a beneficiary of good relationships with multiple actors. Historically, India’s West Asia policy has been multi-directional. But in the recent times India has escalated the engagement with Israel, Palestine, Oman, UAE, Iran etc., which finally may be culminated on the energy security and other dimensions.
Basis of the Policy
Maritime Security
India defines maritime security as; comprising a collection of all the issues that pertain to the seas, and have a bearing on national security. These include, inter-alia, seaborne trade and infrastructure for its pursuit, management of sea resources, environmental issues and employment of naval forces.
This is a term which connotes different things to different navies. While some perceive maritime security in a narrow sense as measures for force-protection and defense against sabotage, others include actions to combat terrorism and illegal activities like piracy and trafficking; still others expand it to embrace the protection of territorial waters and sea lanes.
Energy Diplomacy
In the 21st century, the world faces new challenges, which threaten the sustainability and stability of the global system. Energy commodities shortage that appeared due to limitations of the economic potential of our planet and the growing demand for energy resources, is one of the most important problems of our time. Under such conditions, the role of energy security increases significantly.
Indian Foreign Policy
India faces serious economic and social issues as a result of centuries of economic exploitation by colonial powers. However, since gaining independence from Britain in 1947, India has become a newly industrialised country, has a history of collaboration with several countries, is a component of the BRICS and a major part of developing world.
India is one of the founding members of several international organisations—the United Nations, the Asian Development Bank, New Development BRICS Bank, and G-20—and the founder of the Non-Aligned Movement.
India has also played an important and influential role in other international organisations like East Asia Summit, World Trade Organization, International Monetary Fund (IMF), G8+5 and IBSA Dialogue Forum. India is also a member of the Asian Infrastructure Investment Bank and the Shanghai Cooperation Organisation.
Regionally, India is a part of SAARC and BIMSTEC. India has taken part in several UN peacekeeping missions and in 2007, it was the second-largest troop contributor to the United Nations. India is currently seeking a permanent seat in the UN Security Council, along with the other G4 nations.
Though, India do not have any recognised foreign policy globally, but it acts accordingly with the need of time and situation and especially the region like – Act East Policy, Think West Diplomacy, Cultural diplomacy, etc.
India’s Soft Power
It was in the early 90s when American political scientist Joseph Nye introduced the concept of ‘soft power’ later Harvard professor introduced another concept ‘smart power’ as an extension. Cultural Diplomacy is an important instrument of foreign policy. It helps in promoting international links with countries and people around the globe.
India has recognized the importance of Cultural Diplomacy as a part of its soft power strategy in promoting its national interest and establishing itself as a dominant regional and global power. The basic principal of Cultural Diplomacy is to support foreign policy by the deployment of culture to pursue national interest.
The adoption of the New Economic Policy in 1991 saw a landmark shift in the Indian economy, as it ended the mixed economy model and license raj system - and opened the Indian economy to the world.
Agriculture & Allied Sectors
The history of agriculture in India dates back to Indus Valley Civilization era and even before that in some parts of Southern India. Agriculture, with its allied sectors, is unquestionably the largest livelihood provider in the country with an estimate of over 58% of rural Indians depending on agriculture for their livelihood and this sector contributes around 17-18% to the country’s GDP. As such sustainable agriculture, in terms of food security, rural employment and environmentally sustainable technologies such as soil conservation, sustainable natural resource management and biodiversity protection are essential for holistic rural development.
Post-independence, special programmes were undertaken in India to improve food and cash crops supply. The Grow More Food Campaign (in 1940s) and the Integrated Production Programme (in 1950s) focused on food and cash crops supply respectively. This was followed by the Five-Year plans of India which were oriented mainly towards agricultural development.
Land reclamation, land development, mechanization, electrification, use of chemicals (fertilizers in particular) and development of agriculture oriented ‘packaged approach’ of taking a set of actions instead of promoting single aspect followed under government supervision. The ‘Production Revolution’ initiated in India from 1960s onwards included Green Revolution, Yellow Revolution (oilseed: 1986-1990), Operation Flood (dairy: 1970-1996) and Blue Revolution (fishing: 1973-2002) etc. Following the economic reforms of 1991, significant growth was registered in the agricultural sector due to agricultural reforms and the newer innovations of agro-processing and biotechnology.
Agricultural Seeds & Crops
India has the 10th largest arable land resources in the world. With 20 Agro-Climatic Regions (ACR), all 15 major climates of the world exist in India. The country also possesses 46 of the 60 soil types in the world. India is the largest producer of spices, pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds.
Further, India is second in global production of fruits and vegetables and is the largest producer of mango and banana. India has the largest livestock population of around 305 million with around 31 per cent of world population. India is among the 15 leading exporters of agricultural products in the world. Agricultural exports from India reached US dollar 38.54 billion in Financial Year 2019.
The Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national market for agricultural commodities by networking existing Agriculture Produce Marketing Committees (APMCs). Up to June 2019, 16.4 million farmers, 124,000 traders were registered on the e-NAM platform. 585 mandis in India have been linked while 22,000 additional mandis will be linked in 2021-22.
Livestock & Animal Husbandry
Livestock plays an important role in Indian economy. About 20.5 million people depend upon livestock for their livelihood. Livestock contributed 16% to the income of small farm households as against an average of 14% for all rural households. Livestock provides livelihood to two-third of rural community. It also provides employment to about 8.8 % of the population in India. India has vast livestock resources. Livestock sector contributes 4.11% GDP and 25.6% of total agriculture GDP.
Recently, 20th livestock census has been conducted in 2019. The census reveals that the country has a total of 535.78 million animals, which represents a 4.6% increase over the last 2012 Census of Livestock. West Bengal recorded the largest increase of 23%, followed by Telangana (22%), a 4.6% increase over the 2012 livestock census.
The total number of cattle in the country is increased by 0.8%. The increase is mainly due to a sharp increase in the number of purebred cattle and a larger population of native cattle. Uttar Pradesh has seen a decrease in the livestock population, although the state has taken several measures to save livestock. A decrease of 6% was observed in the total population of native cattle.
The number of indigenous cattle in India continues to decline, despite government efforts to promote the conservation of desi breeds through the Rashtriya Gokul (RGM) Mission. The total number of dairy animals is increased by 6%. Due to higher yields, foreign breeds make up more than half of the dairy animal population. The backyard poultry has increased by around 46% and the total bovine population has shown an increase of about 1% which consists of Cattle, Buffalo, Mithun and Yak.
Irrigation
Irrigation in India includes a network of major and minor canals from Indian rivers, groundwater well based systems, tanks, and other rainwater harvesting projects for agricultural activities. Of these groundwater system is the largest.
Food Processing
The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
Fisheries
India is currently the world’s second largest producer of fisheries after China. In fact, Asian countries contribute to 90% of the aquaculture across the world. Fish and fish product exports emerged as the largest group in agricultural exports and in value terms accounted for Rs. 47,620 crore in 2018-19. The USA is the largest market for India’s seafood products. It obtains 26.08% of India’s maritime product exports. India’s maritime exports have a growth rate of 6%-10% in the last five years. This is far better in comparison with the farm sector during the same period with growth by 2.5%.
B. Manufacturing Sector
Manufacturing sector is a principal indicator of economic development of a nation and acts as the backbone of any diversified economy. The policymakers realized the need for a well-developed manufacturing sector to propel India towards an industrialized nation. This led to the formulation of centralized Five Year Plans by the Planning Commission which increased the contribution of manufacturing sector from 8.98% (1950-51) to 14.23% (1965-66) of India’s GDP.
C. Services Sector
The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign investment flows, contributed significantly to exports as well as provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotels and restaurants, transport, storage and communication, finance, insurance, real estate, business services, community, social and personal services, and services associated with construction.
From becoming the fifth largest economy in the world to coping with economic slowdown, financial year 2019-20 has been rather turbulent for the Indian Economy. What has been exceptional despite economic slowdown is the fact that India continues to grow as one of the fastest economy, and by 2025, is projected to takeover Japan and become the third largest economy, in the world. Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. India’s gross domestic product (GDP) is also expected to reach US$ 5 trillion by FY25 and achieve upper-middle income status on the back of digitization, globalization, favorable demographics, and reforms.
Financial Sector Overview
The GDP growth rate for Q2 of FY19-20 has been 4.5% (lowest in 26 quarters), the unemployment rate being 6.1% (highest in 45 years), Consumer Spending being lowest and so do investor’s confidence. 2019 has been rather distressing for the financial sector. Government interventions like bank merger, financial package to banks, reducing corporate tax, liberal monetary policy etc. have been instrumental but only in parts. Reducing NPA (Non Performing Assets), improving core sectors performance do indicate a reviving financial sector.
Indian Banking System
With the passage of time, the banking systemsaw its nationalization (1969 and 1980) and again opening up for private sector entry (1993–94) to emerge as the most dependable segment of Indian financial system—in a way, its mainstay. Presently, the Indian banking system consists of 12 public sector banks, 26 private sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks, in addition to cooperative credit institutions. Public-sector banks control more than 70 per cent of the banking system assets, thereby leaving a comparatively smaller share for its private peers.
Monetary Policy
The Monetary Policy of India is formulated and executed by Reserve Bank of India to achieve specific objectives. It refers to that policy by which central bank of the country controls (i) the supply of money, and (ii) cost of money or the rate of interest, with a view to achieve particular objectives. The main objectives of monetary policy are to achieve price stability, financial stability and adequate availability of credit for growth.
Indian Financial Market
India’s financial market is one of the oldest in the world and is considered to be the fastest growing and best among the emerging economies. The history of Indian capital markets dates back to 200 years when India was under the rule of the British Empire. Today, 21 regional securities exchanges in India in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India).
Disinvestment
The new economic policy initiated in July 1991 clearly indicated that PSUs, which were established as pillars of growth, had shown a very negative rate of return on capital employed as per changing economic scenario. New economic reforms provided for disinvestment, the Government to raise funds for meeting general/specific needs from the non-performing PSUs. In this direction, the Government adopted the ‘Disinvestment Policy’.
Foreign Direct Investment
Foreign Direct Investment (FDI) plays an important role in the economic development of a country. It helps in transferring of financial resources, technology and innovative and improved management techniques along with raising productivity. With India liberalizing and globalizing the economy in 1991, there is a massive increase in the flow of foreign direct investment.
Indian Demography
1 out of every 6 persons on the planet lives in India. Thus, it is an imperative to collect information on its residents for the purposes of planning, development, and improvement of the residents’ quality of life. India saw its last census eight years ago in 2011 and it will again be conducted in 2021 as it happens at an interval of 10 years and between 2001 and 2011 censuses, in due course, our country grew by 17.7%, adding 181.5 million people.
Taxation
The primary objective of Public Finance is to maximize the welfare of the society, by ensuring rational allocation of resources in conformity with the economy’s priorities. The development of a nation to a large extent depends upon the mobilization of revenue and its spending. Taxation system of a country plays an important role in resource mobilization.
Energy has been universally recognized as one of the most important inputs for economic growth and human development. There is a strong two-way relationship between economic development and energy consumption. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand.
India, home to 18% of the world’s population, uses only 6% of the world’s primary energy. This, however, is rapidly changing and the energy landscape in India is evolving like never before.
The energy intensity of India is over twice that of the matured economies, which are represented by the OECD (Organization of Economic Co-operation and Development) member countries. India’s energy intensity is also much higher than the emerging economies - the Asian countries, which include the ASEAN member countries as well as China.
Power
Oil
Environmental Commitments
Energy for All
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Petroleum & Natural Gas
The oil and gas sector is among the eight core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.
India is the 3rd largest global consumer of oil and its energy requirement is expected to grow at a CAGR of 4.6% through 2030, making it the fastest growing energy consumer in the world. Over the past two decades, the Indian oil and gas industry has had a major transformation triggered by liberalization and increasing demand for oil and gas products.
India’s consumption of natural gas has risen faster than any other fuel in the recent years. Natural gas demand has been growing at the rate of about 6.5% during the last 10 years.
The first oil deposits in India were discovered in 1889 near the town of Digboi in the state of Assam. Also, the natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Gujarat. Natural gas gained further significance after the discovery of large reserves in the South Basin fields by ONGC in the 1970s.
Now, India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. Gas pipeline infrastructure in the country stood at 16,226 km at the beginning of February 2019. Foreign investors will have opportunities to invest in projects worth US$ 300 billion in India, as the country looks to cut reliance on oil imports by 10 per cent by 2022.
Also many government initiatives like PAHAL, Direct Benefit Transfer in PDS Kerosene, Pradhan Mantri Ujjwala Yojana, LPG Panchayat Scheme etc. is the step towards the increasing gas infrastructure development in India.
Mining & Minerals
The mining sector provides raw materials to the other fast-growing sectors. India is home to 1,531 operating mines and produces 95 minerals – 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals. India is second largest crude steel producer in the world and fourth largest iron ore producer in the world. India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves in financial year of 2017-18.
The government has allowed 100% FDI through automatic route in the steel and mining sectors. The development of the mining-based industry also gives a boost to the associated industries and leads to the overall development of the region. It is a labour-intensive sector and provides employment for both unskilled labour and skilled labour. Being a part of the primary sector, it largely provides unskilled jobs.
At present, India has 300 MT domestic steel production capacities by 2030 with 20 percent of the total reserves in India that have been mined until now.
Coal
Being the most abundant fossil fuel in India till date, it continues to be one of the most important sources for meeting the domestic energy needs and accounts more than 50% of the country’s total energy supplies. Coal has been recognized as the most important source of energy for electricity generation in India. About 75% of the coal in India is consumed in the power sector.
Coal mining in India began in 1774 when East India Company commenced commercial exploitation in the Raniganj Coalfield along the Western bank of Damodar river. India produced 6.12 million metric tons (6.75 million short tons) of coal per year by 1900.
India is the 3rd largest producer of coal. The mining sector’s contribution to the GDP is 2.3-2.5 % at present. The Coal resources of India are available in older Gondwana Formations of peninsular India and younger tertiary formations of north-eastern region. The current per capita commercial primary energy consumption in India is about 350 kgoe/year which is well below that of developed countries.
Power & Electricity
Power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. India is the world’s third largest producer and third largest consumer of electricity. The first demonstration of electric light in Calcutta (now Kolkata) was conducted on 24 July 1879 by P.W. Fleury & Co. And now, the national electric grid in India has an installed capacity of 367.28 GW as of December 2019. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come.
India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste.
India has a surplus power generation capacity but lacks adequate distribution infrastructure. To address this, the Government of India launched a programme called “Power for All” in 2016. At the same time, the competitive intensity is increasing at both the market and supply sides (fuel, logistics, finances, and manpower).
New And Renewable Energy
India is one of the countries with significant production of energy from renewable sources. In 2019, India was ranked as the fourth most attractive renewable energy market in the world. As of 2019, 35% of India’s installed electricity generation capacity is from renewable sources, generating 17% of total electricity in the country. At present India is 5th largest installed capacity of renewable energy in the world, 4th largest installed capacity of wind power in the world and 5th largest installed capacity of solar power in the world
The Ministry of New and Renewable Energy, Government of India, has formulated an action plan to achieve a total capacity of 60 GW from hydro power and 175 GW from other RES by March, 2022, which includes 100 GW of solar power, 60 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power. This is the world’s largest expansion plan in renewable energy.
India was the first country in the world to set up a ministry of non-conventional energy resources (Ministry of New and Renewable Energy (MNRE)), in the early 1980s, and its public sector undertaking, the Solar Energy Corporation of India is responsible for the development of solar energy industry in India. Hydroelectricity is administered separately by the Ministry of Power and not included in MNRE targets.
As, up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003. The renewable energy space in India has become very attractive from investors’ perspective and has received better FDI inflow.
The development of the transport infrastructure in India across various areas such as roads, railways and ports has gained tremendous pace in the last few years. The Transport sector in India is expected to grow at a compounded annual growth rate of 5.9 per cent, thereby becoming the fastest growing area of the country’s entire infrastructure sector.
Shipping
The Indian ports and shipping plays a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 kilometer (5422.6 km of mainland coastline and coastline of 2094 km. of Indian islands).
Indian shipping sector plays important role in the Indian economy as more than 90% of the country’s international trade is conducted by the sea.
In 2018-19, shipping traffic has increased by 2.90 per cent from last financial year (2017-18). Cargo traffic at non-major ports was estimated at 348.44 million tonnes up to September 2019. As per Union Budget 2019-20, the Jal Marg Vikas Project for enhancing the navigational capacity of Ganga, a multi modal terminal at Varanasi has been functional since November 2018.
Also, the Government of India has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for projects related to the construction and maintenance of ports and harbours.
India at present has 12 major ports and about 200 non-major ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian Government plays an important role in supporting the ports sector.
In the last half decade (2014-19), Indian shipping has five times more growth in major ports’ traffic with increased efficiency of three times in net profits. Project UNNATI has been started by Government of India to identify the opportunity areas for improvement in the operations of major ports. The Ministry of Shipping is the apex body for formulation and administration of the rules and regulations and laws relating to shipping.
The shipping industry encompasses within its fold shipping and ports sectors which include shipbuilding and ship-repair, major ports, national waterways, and inland water transport.
In percentage terms, Indian shipping industry encompasses about 8 per cent of the entire world trade. Therefore, there is a lot of scope for growth in this area.
Civil Aviation
India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passengers market by 2024. It will follow China and the US. The existing aircraft fleet stands at 548 and another 920 aircraft are on order and will arrive by 2025.
From the historical point of view in India, on 18 February 1911, the first commercial civil aviation flight took off from Allahabad for Naini over a distance of 6 miles (9.7 km) when Henri Pequet, a French aviator, carried 6,500 pieces of mail on a Humber biplane from the exhibition to the receiving office at Allahabad which was the world’s first official airmail service. On 15 October 1932, J.R.D. Tata flew a consignment of mail from Karachi to Juhu Airport, an airline that later became Air India.
The latest data released by aviation regulator Directorate General of Civil Aviation (DGCA) reveals that domestic air traffic nearly doubled to more than 120 million passengers in 2018 with 100 flights taking off every hour compared with 67 in 2011. As against about 60 million passengers in 2011, there were above 120 million passengers in 2017. There was also an 18% growth in passenger traffic in 2017. In addition, flights were operating at fuller capacity than in the past, from 75.5 per cent full in 2011 to 86.1 per cent full in 2017. Also, the inflow of foreign investment has led to acceleration in the aviation industry’s growth over the last seven years. The government has 100 per cent FDI under automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49 per cent would require government approval.
The Regional Connectivity Scheme which was launched earlier has now entered its second round under which 325 routes have been awarded to airlines and helicopter operators with the aim of enhancing flight services to hilly and remote areas. In November 2018, the Government of India approved a proposal to manage six AAI airports under public private partnership (PPP). These airports are situated in Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.
It is clear that the country is poised for a big leap in the arena of air travel. It still has enormous potential for expansion since air transport remains beyond the reach of most of the country’s travelling public. There is thus no doubt that the civil aviation needs to keep a focus on quality, cost and passenger interest, which will enable it to become the third-largest aviation market by 2025.
Indian Railways
India has the fourth-largest railway system in the world, lagging behind only United States of America, Russia and China. The Indian Railways route length network is spread over 115,000 km, with 12,617 passenger trains and 7,421 freight trains each day from 7,349 stations plying 23 million travellers and 3 million tonnes (MT) of freight daily. India’s railway network is recognised as one of the largest railway systems in the world under single management. Indian Railways is the single largest employer in India and eighth largest in the world; employing close to 14 lakh people.
Since, the introduction of railways in India in 1853 (from Mumbai to Thane), with several committees, plans, policies, acts the Indian Railways is now focusing to start a bullet train from Mumbai to Ahmedabad. To name a few plans like National Railways Plan 2020, Diamond Quadrilateral, Metro Rail policies, Dedicated Railway Freight Corridors, Railways Act of 1989 etc. is making the Indian Railways modern and accommodative of new technologies.
With the motive of making investor-friendly policies 100 per cent FDI allowed in railway infrastructure under the automatic route.
Some of the recent schemes like AVATARAN, Mission Satyanishtha, Smart Freight Operation Optimization & Real Time Information (SFOORTI), Project Saksham, Project Swarn, Rashtriya Rail Sanraksha Kosh, Indian Railways e-procurement system (IREPS) etc. government is taking several initiatives for developing Indian Railways for the future.
Road Transport & Highways
Connectivity is the life blood of the economy of any country. India is the second-largest road network (with 56 lakh kilometers) in the world, after the United States with 67 lakh kilometers. India’s road network comprises of national & state highways and urban & rural roads. National highways account for 2% of the total road network and carry over 40% of total traffic. The construction of highways reached 9,829 km during 2017-18, with an all-time high average pace of 27 km per day.
The government has given massive push to all forms of physical connectivity through Pradhan Mantri Gram Sadak Yojana, Industrial Corridors, Dedicated Freight Corridors, Bharatmala and Sagarmala Projects, Jal Marg Vikas, UDAN scheme and so on.
Current priorities of the government in roads and highways are Bharatmala Pariyojana, ease and economy of traffic movement, focus on road safety, increased use of IT applications and emphasis on green initiatives etc. Also, other priority areas include focus on multimodal transport integration and bettering costs, exploring new funding sources and introducing new Public- Private Partnership (PPP) modes.
With 100 percent FDI (Foreign Direct Investment) allowed under automatic route, the Government of India (GoI) is planning to expand the national highway network to over 200,000 km. The government aspires to provide 4-lane connectivity to 550 districts, increase the vehicular speed by 20-25% and reduce the supply chain costs by 5-6%.
With the National Road Safety Policy and newly amended Motor Vehicle (Amendment) Act, 2019 the government is trying to evade the road accidents and reduce the loss of life on roads. Also, the schemes like ‘Farishtey’ (launched be Delhi government) has set an example that first hour treatment is the most crucial time to save a life caused from the accidents.
The first Union Budget of the third decade of 21st century was presented by the Minister for Finance & Corporate Affairs, on February 1, 2020. The budget aimed at energizing the Indian Economy through a combination of short-term, medium-term, and long-term measures. It also aims to achieve seamless delivery of services through digital governance; improve physical quality of life through National Infrastructure Pipeline (NIP); ensure risk mitigation through disaster resilience; and usher in social security through pension and insurance penetration.
Theme of the Budget
The Union Budget has been structured on the overall theme of “Ease of Living”, underlined by the three prominent themes -
The three broad themes are held together by twin pillars of: Corruption free - policy-driven good governance and Clean and sound financial sector.