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13 April 2024 : Indian Express Editorial Analysis Copy

Indian Express Editorial Analysis

13-April-2024

1. Job number one

Topic: GS3 – Indian Economy – Issues relating to development and employment.

This topic is relevant for both Prelims and Mains as the analysis delves into India’s employment challenges, particularly in the context of its shift towards a service-oriented economy.

 

Context:
  • Meta, formerly known as Facebook, is set to establish its first data center in India, situated on the Reliance Industries’ Chennai campus.
  • This move is anticipated to create approximately 30 new jobs, a relatively modest step towards addressing India’s substantial employment needs, as projected by McKinsey at 90 million new non-farm jobs by 2030.
  • Despite India’s promising economic trajectory, marked by rapid growth, youthfulness, and technological advancements, concerns persist regarding the labor force’s underutilization, with only 46.6 percent of the working-age population currently employed.

Shift to Services and Employment Challenges:

  • India’s development strategy has predominantly focused on the services sector rather than manufacturing, deviating from the conventional Asian formula of land reform, industrialization, and export-led growth.
  • While the services sector, particularly IT-enabled services, has experienced significant growth, the recent slowdown in the IT sector, coupled with automation and artificial intelligence, threatens job redundancies.
  • Additionally, a substantial skills deficit hampers the transition to higher-end services, leaving low-skilled occupations as the primary source of employment for many.

Challenges in High-End Services and IT Sector:

  • Despite the growth in high-end services such as IT, there remains a significant gap in skilled labor, limiting the sector’s potential for expansion.
  • The recent contraction in the IT sector underscores the vulnerability of job markets reliant on technology, necessitating a reevaluation of India’s employment strategy.

Policy Recommendations for Job Creation:

  • Given the magnitude of India’s employment challenge, a multifaceted approach to job creation is essential.
  • Policy interventions should focus on supporting high-end services exports, nurturing tech startups, facilitating a green transition, and revitalizing the manufacturing sector.
  • Investment in education, skill-building, and regulatory incentives for employers are critical components of this strategy.

Promising Vectors for Job Creation:

  • Several potential avenues for job creation include the expansion of Global Capability Centers (GCCs), leveraging India’s tech startup ecosystem, transitioning to a green economy, and supporting small-and-medium manufacturers.
  • These initiatives aim to diversify India’s employment landscape, mitigate reliance on traditional sectors, and harness emerging opportunities in technology and sustainability.

Conclusion:

  • India’s employment landscape faces significant challenges, necessitating a comprehensive and proactive approach from policymakers.
  • By addressing skills deficits, fostering innovation, and diversifying economic activities, India can unlock its full potential for job creation and secure sustainable growth in the years ahead.
What should be Done to Address Unemployment in India?

 

Implement a National Employment Policy (NEP):

  • The evidence suggests that the employment challenge can no longer be met only through more rapid GDP growth. Rather, a separate policy focus is needed on employment in addition to the focus on GDP growth.
  • Such employment policies will need both demand side and supply side components.
  • For example, to the extent firms in India find it easier to automate due to a lack of public provisioning of education and health of adequate skilled labour, increasing the quality of the workforce through better care, as well as bridging the skills gap, are important.
  • On the demand side, direct public job creation will be needed.
  • Introducing an Urban Version of MGNREGA:
  • It can provide a safety net and a source of income for the urban poor. The scheme can be implemented for the urban poor who are often engaged in informal and precarious jobs.
  • This can provide them with a minimum level of income security and also create public assets and services in the urban areas.
  • Rajasthan has recently introduced an urban variant of the MGNREGA.
  • Increase Industrialization and Investment in Agriculture:
  • It can create more jobs and boost productivity. One of the most sure-shot remedies of the unemployment situation in India is rapid industrialization.
  • Increased number of industries translates effectively into an increased number of employment opportunities.
  • Moreover, investment or capital formation in agriculture can also generate employment directly and indirectly through multiplier effects.
  • Diversifying Agriculture and Promoting Agro-Processing Industries:
  • It can enhance rural income and employment opportunities. There is an urgent need for a relative shift from growing of crops to horticulture, vegetable production, floriculture, animal husbandry, fisheries etc. which are more labour absorbing and higher income-yielding.
  • In addition to this, promotion of agro-processing industries for export purposes has a large employment potential.
  • These industries can also reduce the wastage of agricultural produce and increase the value addition.
  • Expanding Education and Health Care:
  • It can improve human capital and generate employment in the social sector.
  • The expansion of education and health care not only promotes accumulation of human capital and thereby contributes to growth of output, it will also generate a good deal of employment opportunities.
  • ·      Reforming the education system and providing vocational and technical training will enhance the skills and employability of the workforce.
  • Vocational and technical training can help the students acquire the skills and knowledge required for specific occupations and industries. This can reduce the mismatch between the demand and supply of skilled labour and improve the productivity and competitiveness of the economy.
  • Developing the Rural Areas and Decentralising Development:
  • It can reduce the migration pressure on urban areas and create more balanced growth.
  • Development of the rural areas can help mitigate the migration of the rural people to the urban areas thus decreasing the pressure on the urban area jobs.
  • Decentralised development can also ensure that the benefits of growth are shared more equitably among different regions and sectors. This can also foster local participation and empowerment of the people.

 

PYQ: How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (200 words/12.5m) (UPSC CSE (M) GS-3 2016)
Practice Question:  Explain the importance of Meta’s decision to establish its first data center in India. How does this decision relate to India’s efforts to create more jobs? Discuss some of the challenges India faces in terms of employment and suggest one policy measure to tackle these challenges. (250 words/15 m)

 

2. PROBLEM WITH COAL

Topic: GS3 – Environment – Environmental Pollution and Degradation

This topic is relevant for both Prelims and Mains as the analysis delves into the environmental consequences of coal power plants, emphasizing their significant contribution to global greenhouse gas emissions.

 

Context:
  • According to the International Energy Agency (IEA), coal power plants contribute a significant portion of global greenhouse gas emissions, making them a crucial focus in climate change negotiations.
  • The rise in thermal power plants, particularly in China and India, presents a challenge to efforts aimed at reducing coal usage.
  • China, in particular, has witnessed a substantial increase in coal power capacity, contradicting previous pledges to limit fossil fuel usage.
  • Similarly, the slowing rate of coal power plant decommissioning in the US adds to concerns about meeting climate targets outlined in the Paris Climate Pact.

Challenges in Meeting Climate Targets:

  • To achieve the goal of phasing out current coal capacity by 2040 and limiting the rise in global temperatures, significant efforts are required.
  • However, the rate of coal plant retirements falls far short of the necessary pace.
  • China’s commitment to retiring coal capacity has not been met, with only a fraction of the target achieved.
  • Similarly, the US faces challenges in meeting its retirement goals, despite forecasts suggesting a reduction in coal use due to competitive natural gas prices and increasing renewable energy capacity.

Complexities in Green Transition:

  • Transitioning away from coal presents unique challenges for emerging and developing economies, particularly in balancing economic growth with environmental sustainability.
  • While countries like India have made progress in renewable energy adoption, the growth of green energy has not kept pace with rising electricity demand.
  • Additionally, the coal sector remains a significant employer in many of these economies, complicating efforts to phase out coal usage.

Need for Technological Solutions and International Cooperation:

  • The debate over implementing carbon capture technology highlights the complexities of transitioning away from coal.
  • While such technologies offer potential solutions, they come with significant costs and require collaboration between national and global financial institutions.
  • However, the role of these institutions in addressing the social and environmental impacts of coal energy has not received adequate attention in international climate change processes.

Urgency of Action:

  • With global temperatures reaching record levels, there is an urgent need to accelerate efforts to reduce coal usage and transition to cleaner energy sources.
  • Delaying action on addressing coal-related emissions could have severe consequences for global climate stability, underscoring the importance of concerted international cooperation and innovative solutions.
What are the Environmental and Social Impacts of Coal?

 

Coal Quality and Transportation:

  • Indian coal contains high levels of fly ash compared to coal from other majo ·      Indian coal contains high levels of fly ash compared to coal from other ma r coal-mining countries.
  • Burning coal with more ash leads to erosion and failure of boiler tubes, affecting plant availability, efficiency, and performance leading to an increase in emissions.
  • Transporting unwashed raw coal to power plants located over 500 km away congests transportation systems and results in carbon dioxide emissions and environmental pollution.
  • Sulphur Dioxide Emissions:
  • Indian coal other than that from Assam and Meghalaya has lower sulphur content compared to coal used in Chinese power plants.
  • Tall stacks and favourable weather conditions in India allow sulphur dioxide emissions to disperse far and wide.
  • According to the United Nations Intergovernmental Panel on Climate Change, historical sulphur dioxide emissions have created a cooling effect, masking global temperature rise.
  • Flue Gas Desulphurisers (FGDs):
  • Retrofitting existing power plants with FGDs increases specific coal consumption, lowers energy efficiency, and leads to higher emission intensity and temporary plant shutdowns.
  • FGD is a process that removes sulfur dioxide (SO2) from exhaust gases.
  • Retrofitting FGDs has been delayed in India due to the inability to shut down operating power plants.
  • Employment and Industry:
  • The coal sector plays a vital role in industries like power, steel, cement, and aluminium, employing millions.
  • Transition to cleaner energy could result in an imbalance in the preservation of jobs and economic stability.
  • Energy Access and Affordability:
  • Coal contributes significantly to electricity generation, ensuring access and affordability for a large population.
  • Transitioning to renewables must consider maintaining affordable and reliable energy access.

 

PYQ: Consider the following statements: (2020)

1) Coal ash contains arsenic, lead and mercury.

2) Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment.

3) High ash content is observed in Indian coal.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2 and 3

Ans: (d)

Practice Question:  Explain the challenges associated with reducing coal usage globally. How does the growth of coal power plants in countries like China and India impact efforts to combat climate change? Suggest one policy measure to accelerate the transition towards cleaner energy sources. (250 words/15 m)

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