Kurukshetra Magazine Summary: September 2023

Kurukshetra Magazine Sep 2023 Summary

The September 2023 edition of Kurukshetra Magazine focused on the theme of “Innovative Rural Development Strategies”. This issue bought to light the latest advancements and initiatives in rural India, emphasizing technology-driven solutions for enhancing agricultural productivity, rural entrepreneurship, and sustainable living practices. Let’s discuss the Kurukshetra Magazine Summary for September 2023 edition:

1. MAKE IN INDIA: CATALYSING GROWTH OF STUDENTS AND YOUTH

Introduction:

India’s economic landscape, historically dominated by the service sector, necessitated a strategic push towards manufacturing. The ‘Make in India’ initiative, launched in 2014, under the visionary leadership of Prime Minister Narendra Modi, seeks to enhance self-sufficiency, job creation, and redefine the country’s economic trajectory.

1. Challenges:

Educational System Critique:

    • The Indian education system has long faced criticism for its emphasis on rote learning and grades, undermining creativity and critical thinking. Practical exposure remains limited, hindering students’ ability to apply theoretical knowledge effectively.

Research and Development Gap:

    • India’s investment in research and development falls short compared to other nations, limiting the growth of innovative ideas and technologies.

Infrastructure and Access Barriers:

    • Inadequate facilities in rural areas, including unreliable internet connectivity and a lack of basic amenities, pose significant challenges for students and innovators.

Regulatory Complexity:

    • Securing intellectual property rights and patents can be complex and time-consuming, discouraging innovators from protecting their ideas. The overall business ecosystem is still developing, adding to the challenges.

Societal Pressures:

    • Societal and cultural factors contribute to discouraging innovation, with family pressures often pushing students toward conventional career paths. Gender disparities persist, limiting opportunities for female students and innovators.

2. Steps Taken:

Educational Reforms:

    • Recognizing the need for a paradigm shift, the National Education Policy (NEP) 2020 emphasizes multidisciplinary skills, creativity, and critical thinking.

Atal Tinkering Labs (ATL):

    • The Atal Innovation Mission (AIM) has established 10,000 Atal Tinkering Labs nationwide, fostering curiosity, creativity, and STEM understanding among students.

Infrastructure Development:

    • Initiatives like Atal Incubation Centres (AICs) and the ‘Mentor India’ initiative connect innovators with professionals, providing mentorship and support.

Ease of Doing Business:

    • The ‘Start-up India’ initiative aims to create an ecosystem conducive to the growth of startups, resulting in a significant increase in the number of startups.

State-Level Initiatives:

    • States have the flexibility to design and implement programs based on local needs, fostering a tailored approach to innovation. Examples include Kerala Startup Mission and T-Hub in Telangana.

3. Measuring Manufacturing Growth:

Efforts to measure India’s manufacturing growth include the National Manufacturing Innovation Survey (NMIS) and the Indian Manufacturing Innovation Index (IMI), where Karnataka leads as the most ‘Innovative’ State.

Conclusion:

As ‘Make in India’ completes nine transformative years, it stands as a visionary initiative propelling India towards economic resurgence and self-reliance. Collaboration among stakeholders, including the Government, industries, educational institutions, and citizens, is paramount. By harnessing collective potential, resources, and entrepreneurial spirit, ‘Make in India’ has the potential to pave the way for a brighter, prosperous, and self-sufficient India for generations to come.


2. MAKE IN INDIA: CHALLENGES OPPORTUNITIES AND OUTCOMES.

Why Make in India?

Objectives of Make in India:

  • Employment and Skill Enhancement: Focus on creating employment and upgrading skills in 27 sectors.
  • Manufacturing Sector Growth: Increase the contribution of the manufacturing sector to overall GDP growth.
  • Tax Revenue Enhancement: Boost tax revenues through enhanced business activity.
  • Reduction of Bureaucratic Hurdles: Eliminate unnecessary laws, controls, and bureaucratic procedures.
  • Quality Standards: Adopt higher quality standards for manufacturing with reduced environmental impact.
  • FDI Attraction: Attract foreign direct investment (FDI) for capital financing and technological investment.

Scope and Sectoral Coverage:

  • Global Manufacturing Hub: Transform India into a global manufacturing hub.
  • Transparency and Accountability: Promote transparency, accountability, and ease of doing business.
  • Objectives: Attract FDI, promote domestic industries, boost employment, foster innovation, enhance export competitiveness, and impact economic growth.

Make in India 2.0:

  • Ambitious Endeavor: Targets 27 pivotal economic sectors, 15 in manufacturing, and 12 in services.
  • Collaborative Effort: Involves collaboration between Central and State Governments with tailored strategies.
  • Oversight: Managed by the Department of Promotion of Industry and Internal Trade (DPIIT) for manufacturing and the Department of Commerce for services.

Pillars of Make in India:

  • New Processes: Improving ‘Ease of Doing Business’ (EODB) ranking aligned with World Bank parameters.
  • New Infrastructure: Establishing advanced industrial corridors, smart cities, and cutting-edge infrastructure.
  • New Sectors: Identifying and eliminating barriers in key sectors prioritizing growth and national development.
  • New Mindset: Transforming the government’s outlook, making it a partner in economic development.

Advantages of Make in India:

  • Socio-Economic Growth: Encompasses dimensions with potential for substantial growth, benefiting both rural and urban areas.
  • Export-Oriented Model: Bolsters India’s balance of payments and addresses post-Covid economic uncertainties.
  • Global Manufacturing Hub: Aims to boost credit ratings and position India as a global manufacturing hub.

Carrying Out Reforms:

  • Policy Judgements: Guaranteeing basic production inputs, ensuring infrastructure accessibility, supporting entrepreneurship, and enhancing capacity.
  • Union Budget 2021-22: Allocated Rs. 1.97 lakh crore for production-linked incentives (PLI) in 14 manufacturing sectors.

Impact of Make in India:

  • Ease of Doing Business Ranking: Improved significantly, moving from 142 in 2014 to 63 in 2022.
  • FDI Landscape Shift: Structural shift with gross FDI growing from 2.2% to 2.6% of GDP.
  • Agriculture Sector Growth:6% annual growth, becoming a net exporter.
  • Manufacturing GVA and Employment: Growth in Gross Value Addition (GVA) and increased employment despite COVID-19 disruptions.
  • Services Trade Growth: Resilient performance, with total services exports reaching $254.5 billion in 2021-22.

Challenges and Reforms:

  • Land Acquisition Process: Facilitate the land acquisition process.
  • Labour Development Ecosystem: Create an appropriate labour development ecosystem.
  • Taxation Regime: Rationalize the taxation regime.
  • Technology Acquisition: Enable technology acquisition and dissemination.

Concluding Remarks:

  • Long-Term Strategy: Leveraging post-Covid challenges through various initiatives and schemes.
  • Balanced Regional Growth: Aims to drive balanced regional growth, address poverty, unemployment, and income disparities.

Key Role of MSMEs, Services Sector, and Startups: Emphasizes their vital role in the success of Make in India.


3. FOSTERING SKILLS FOR ENVIRONMENTALLY CONSCIOUS SUSTAINABLE FUTURE.

Environmental Education and Youth Empowerment

  • The relationship between environmental knowledge and attitudes is widely acknowledged.
  • India prioritizes youth education for a sustainable future based on environmental concerns.
  • The growth of environmental science necessitates empowering the youth with green skills.
  • The International Labour Organization (ILO) and the United Nations Industrial Development Organization (UNIDO) define green jobs as eco-conscious roles, including renewable energy and conservation, promoting sustainability.

Green Skill Development Initiatives

  • The Ministry of Environment, Forest & Climate Change utilizes ENVIS Hubs to promote green skills and aid youth employment in environmental and forest sectors.
  • The Green Skill Development Programme (GSDP), launched in June 2017, initially trained Biodiversity Conservationists and Para-taxonomists in ten districts.
  • The GSDP courses, coordinated by the Ministry of Skill Development and Entrepreneurship (MSDE), align with the National Council for Vocational Education and Training (NCVET) guidelines.
  • Graduates of GSDP can secure positions in various bodies under the Ministry of Environment, Forest & Climate Change.

National Action Plan on Climate Change (NAPCC)

  • The NAPCC is a national strategy with eight missions addressing climate change and enhancing ecological sustainability.
  • It includes missions such as the National Solar Mission, National Mission on Sustainable Agriculture, and National Mission for Sustainable Habitat.
  • States develop Climate Change Action Plans for adaptation under the NAPCC.

Circular Economy and Resource Efficiency

  • India actively promotes Resource Efficiency and Circular Economy, aligning with the UN Decade of Action for Sustainable Development Goals.
  • Principles like Extended Producer Responsibility and Circular Economy emphasize reduce-reuse-recycle for sustainable consumption and production.
  • NITI Aayog forms committees for circular economy action plans, particularly for various waste types.
  • The National Resource Efficiency Policy (NREP) 2019 focuses on reducing primary resource consumption, waste minimization, and creating employment opportunities.

Off-Farm Technologies and Biomass Energy

  • Off-farm technologies like ‘bio-briquetting’ are promoted for sustainable energy generation.
  • The G.B. Pant National Institute of Himalayan Environment supports lower and marginalized groups in manufacturing Bio-briquettes, promoting resource utilization and generating livelihood.

India’s Climate Action at COP 26

  • India presented ‘Panchamrit’ of its climate action at COP 26, including targets for non-fossil energy capacity, renewable energy, and carbon emissions reduction.
  • Goals include achieving 500 GW of non-fossil energy capacity, meeting 50% of energy requirements from renewable energy by 2030, and achieving Net Zero carbon emissions by 2070.

Conclusion

  • The ‘PARIVESH’ initiative by the Ministry of Environment, Forest, and Climate Change automates the entire process of environmental clearances for developmental projects.
  • Initiatives like GSDP and PARIVESH are expected to augment the ‘Make in India’ campaign in the coming years.

4. INDIA: HUB FOR ELECTRONICS MANUFACTURING.

India’s Manufacturing Revolution: Electronics Sector Takes the Lead

Government’s Manufacturing Drive:

  • A Historic Perspective (Since 2014): India has embarked on a transformative journey to boost manufacturing since 2014, not merely to meet domestic demands but also to position itself as a global manufacturing powerhouse.
  • The government’s strategy involves providing subsidies to incentivize manufacturers setting up operations within the country, with the primary goals of enhancing exports, curbing cheap imports, and generating substantial employment.

Electronics Sector: A Beacon of Success

  • The electronics sector stands out as one of the most significant beneficiaries of this manufacturing-focused initiative. The government’s ambitious target is to escalate electronics manufacturing capacity to Rs. 24 lakh crore by 2025-26, concurrently creating over 10 lakh jobs.
  • Early signs of success are evident, with mobile phone exports surpassing a significant milestone of $11 billion in the fiscal year 2022-23.

Key Success Indicators:

  • The Production Linked Incentive (PLI) Scheme and Phased Manufacturing Program (PMP) initiatives have propelled a 23% increase in value addition in the electronics sector and a remarkable 20% in smartphone manufacturing since 2014-15.
  • In the fiscal year 2022-23, smartphones constituted a substantial $44 billion of the total $101 billion electronics production, with exports accounting for $11.1 billion.
  • Import substitution has been achieved in the telecom sector, and the drone sector, predominantly led by MSME startups, has witnessed a seven-fold surge in turnover due to the PLI Scheme.

Make in India Initiative: Unveiling the Game Changer

  • The Make in India initiative, launched in 2014, serves as the linchpin for India’s manufacturing transformation.
  • This comprehensive initiative, now in its 2.0 version encompassing 27 sectors, aims to facilitate investments, drive innovation, develop robust infrastructure, and foster meaningful industry-government partnerships.
  • Key sectors, including Electronics and IT & ITeS, play a pivotal role, with a government target of achieving $300 billion in electronics manufacturing by 2025-26.

NPE 2019 Initiatives: Paving the Way for Success

  • Under the National Policy on Electronics 2019 (NPE 2019), various schemes have been initiated to attract investments, enhance capabilities, and promote exports.
  • Notable initiatives include the PLI scheme for Large Scale Electronics Manufacturing (LSEM), PLI scheme for IT Hardware, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, and a comprehensive program for the development of Semiconductors and Display manufacturing ecosystem.

Fiscal Incentives and Challenges:

  • While fiscal incentives, including the Modified Scheme for setting up Semiconductor Fabs and Display Fabs, Design Linked Incentive Scheme
  • PLI Scheme 2.0 for IT Hardware, aim to propel growth, challenges such as infrastructure limitations, bureaucratic red tape, complex taxation, and a shortage of skilled labor remain.

Way Forward:

  • As India aims to increase the manufacturing sector’s contribution to GDP from 16% to 25% by 2025, a coordinated and aggressive approach is essential.
  • The country’s potential lies in significant domestic demand, government measures, and a demographic advantage.

Streamlining the investor experience and addressing challenges are crucial to realizing India’s aspiration to become a credible global manufacturing alternative.


5. PRODUCTION LINKED INCENTIVE SCHEME FOR AATMANIRBHAR BHARAT.

Scheme Overview:

  • NITI Aayog introduced the Production Linked Incentive (PLI) Scheme to provide financial incentives to companies establishing manufacturing facilities in India for identified products.
  • Initially, 10 sectors were identified, including ACC batteries, Electronic/Technology Products, Pharmaceuticals, Telecom & Networking products, and more. Later, Drones and Drone components were added, bringing the total to 14 sectors.

Government’s Objectives:

Reduce Import Dependency:

  • Aim to decrease reliance on imported goods in the identified sectors under the PLI Scheme.

Enhance Exports:

  • Encourage and facilitate increased exports of products manufactured through the PLI Scheme.

Attract FDI:

  • Create incentives for foreign direct investment by establishing manufacturing capacities in India.

Technology Infusion:

  • Introduce cutting-edge technology into the country across various sectors and products.

Sectoral Highlights:

  • Pharmaceuticals: Maximum investment under PLI, focusing on the manufacture of APIs and drug intermediaries.
  • Mobile Phone Exports: Projected to exceed Rs 1.2 lakh crore in 2023-24, showcasing substantial growth.
  • Electronics Imports: In 2022-23, electronics imports amounted to $77 billion, emphasizing the need for domestic production.
  • Telecom Sector: PLI scheme led to over 60% import substitution in the telecom sector.

Merchandise Export Incentive:

  • The Department of Commerce’s Merchandise Export Incentive Scheme (MEIS) provides an average incentive of around 2% of the export value.

Sector-Specific Initiatives:

  • M/o Steel PLI Scheme (July 2021):
  • Incentive of Rs. 1293 Cr for promoting domestic manufacturing of Electrical steel (CRGO & CRNO used in electrical motors).

Impact on Employment and Economy:

  • Phenomenal impact on employment generation, particularly in sectors with long gestation periods, like specialty steel.
  • Expected boost to both direct and indirect employment as well as exports.

Challenges and Achievements:

  • PLI Scheme hailed as a game-changer for Aatmanirbhar Bharat, achieving significant milestones in reducing import dependency and boosting exports.
  • Impact evident in sectors like specialty steel, where manufacturing commencement will positively influence downstream industries.

Telecom Sector Milestone:

  • Import substitution exceeding 60% in the telecom sector showcases the scheme’s effectiveness.

Conclusion:

The PLI Scheme has emerged as a pivotal driver in realizing the vision of Aatma-Nirbhar Bharat, achieving substantial success in diverse sectors. Its transformative impact on employment, export growth, and reducing import reliance underscores its significance in fostering self-reliance and economic resilience.


6. Cultural Heritage Tradition to Innovation.

Introduction:

  • India’s cultural heritage reflects unparalleled diversity, shaped by thousands of years of history, various civilizations, religions, and regions.

Cultural Heritage as Soft Power:

  • It plays a crucial role in shaping India’s global perception, acting as a powerful soft power tool.
  • Cultural exports like yoga, music, dance, and traditional medicines have garnered international acclaim, fostering goodwill and diplomatic ties.

Challenges and Opportunities:

  • Economic pressures sometimes prioritize commercial viability over safeguarding cultural authenticity.
  • The ‘Make in India’ initiative provides an opportunity to coalesce tradition and innovation, safeguarding and revitalizing India’s cultural heritage.

Empowering Artisans:

  • ‘Make in India’ initiatives train artisans in modern techniques, design, marketing, and e-commerce.
  • Financial support through schemes like PMEGP empowers artisans to start and expand ventures.
  • Trade fairs and online platforms like e-Haats provide digital marketplaces for artisans.

Revitalizing Traditional Art Forms:

  • ‘Make in India’ campaign is a cultural renaissance, breathing new life into art, crafts, and traditions.
  • Initiatives like National Handloom Day celebrate and promote traditional craftsmanship.

Leveraging Technology for Conservation:

  • Technology, including digitization and 3D scanning, enhances conservation efforts.
  • Virtual museums provide additional protection for physical artefacts, serving as backups.

Cultural Tourism and Experiential Learning:

  • Swadesh Darshan scheme and Incredible India! campaign promote cultural tourism.
  • ICCR plays a role in promoting Indian culture abroad.

Economic Impact of Cultural Tourism:

  • Tourism crucial for promoting Indian art and culture globally, fostering cultural diplomacy.
  • Cultural exchanges strengthen ties and showcase India’s artistic heritage to global audiences.

Conclusion:

  • ‘Make in India’ has a long-term impact on preserving and promoting India’s cultural identity.
  • Integration of cultural elements into tourism and fostering artisanal growth elevates global visibility, creating a lasting legacy.

7. MAKE IN INDIAS SUPER STAR SECTORS AND WATER MANAGEMENT.

Introduction:

  • Water efficiency is a critical factor for the success of India’s ‘Make in India’ initiative, initiated in 2014.
  • The initiative focuses on six key sectors that play a pivotal role in economic growth.

Automotive:

  • The Automotive Mission Plan (AMP) 2026 aims for significant growth, targeting USD 300 billion.
  • Car production alone consumes a substantial amount of water, emphasizing the need for sustainable water management practices.
  • Major automotive manufacturers like Hyundai and Toyota have adopted practices such as rainwater harvesting and recycling.

Electronics System Design and Manufacturing:

  • The National Policy on Electronics 2019 sets a target of achieving a USD 400 billion turnover by 2025.
  • The electronics industry relies heavily on ultra-pure water for critical processes.
  • There is a growing emphasis on minimizing water waste to benefit both industry and clean drinking water sources.

Renewable Energy:

  • India aims to achieve 50% renewable energy in its power mix by 2030.
  • Solar plants, a significant component of renewable energy, consume substantial water for cleaning purposes.
  • ‘Make in India’ offers investment opportunities in the hydropower sector, contributing to renewable energy goals.

Roads and Highways:

  • India’s extensive road network, the world’s second-largest, is vital for economic prosperity.
  • Efficient road planning should prioritize water conservation to ensure sustainable development.
  • The use of technology and collaboration with water conservation efforts can minimize environmental impact during construction.

Pharmaceuticals:

  • India’s pharmaceutical sector, one of the world’s largest, is projected to reach USD 130 billion by 2030.
  • High-quality pure water is indispensable for pharmaceutical manufacturing processes.
  • While pharmaceutical firms prioritize water sustainability, there is a need for increased efforts, especially in research and development.

Food Processing:

  • The ‘Make in India’ initiative supports integrated cold chains and Mega Food Parks, contributing to the growth of the food processing sector.
  • The Production Linked Incentive (PLI) scheme for food processing aims to boost capacity and employment.
  • Water-efficient practices are crucial, given that a significant portion of water usage is dedicated to food production.

Way Forward:

  • Creating a business-friendly environment is vital for the success of ‘Make in India.’
  • Circular water use and adopting a water-neutral approach are proposed strategies for sustainable growth.

NITI Aayog advocates water-neutral practices, emphasizing innovation and collaboration across sectors.


8. CHANGING PARADIGM OF FOREIGN DIRECT INVESTMENTS

Introduction:

  • Foreign Direct Investment (FDI) involves foreign companies or individuals investing in a host country to establish or expand business operations.
  • FDI contributes to growth by providing external resources, technology, and employment opportunities.

Conceptual Background of FDI:

  • Long-term participation involving management, joint ventures, and technology transfer.
  • IMF defines FDI as the acquisition of at least 10% of shares or voting power by non-resident investors.
  • Two major types: horizontal FDI (expanding to produce similar goods) and vertical FDI (exploiting raw materials or getting closer to consumers).

FDI in India:

  • Routes: Automatic route (without government approval) and Government route (regulated by the government).
  • Mergers and Acquisitions: Foreign companies acquiring existing Indian companies.
  • In 2022-23, India witnessed a total FDI equity inflow of $70.97 billion.
  • Top five countries contributing to FDI: Mauritius (26%), Singapore (23%), USA (9%), Netherlands (7%), Japan (6%).

FDI Policy Changes in India:

  • Single-Brand Retail Trading (SBRT): 100% FDI allowed with relaxation of local sourcing norms for the first 5 years.
  • Construction Sector: Revised definition of “real estate business” to include various development projects.
  • Digital Media: 26% FDI allowed for digital media entities uploading/streaming news and current affairs content.
  • Contract Manufacturing: Included in the definition of SBRT.
  • Coal Mining and Civil Aviation: 100% FDI allowed in coal mining and scheduled airlines respectively.
  • Defence and Insurance Sector: FDI limit increased from 49% to 74%.
  • E-Commerce: New norms introduced, including restrictions on exclusive deals and equity participation in vendors.

Basic Objectives of Make in India:

  • Attract FDI and make India an attractive destination for multinational corporations.
  • Promote domestic industries, strengthen self-reliance, and enhance the industrial ecosystem.
  • Boost employment, foster innovation and technology, and promote knowledge sharing.
  • Enhance export competitiveness.

Impact of FDI on India’s Manufacturing Sector and Make in India:

  • Manufacturing contributes 17.3% of GDP.
  • FDI equity inflows in manufacturing are steadily increasing.
  • Manufacturing output and contribution to GDP are on the rise.
  • The automobile industry is witnessing substantial growth.
  • Textile sector attracting significant FDI, representing over 4% of India’s GDP.

Conclusion:

  • FDI is a key driver of economic growth, contributing capital and technological support to industrial development.
  • India’s changing FDI policies align with the objectives of the Make in India initiative, fostering growth and competitiveness.

9. FOOD PROCESSING: ADVANCING MAKE IN INDIA

Food Processing to Reduce Food Waste

Food Waste in India:

  • Approximately 40% of the total annual production in India is wasted, primarily due to an inefficient supply chain and a fragmented food system.

Types of Food Processing:

  • Primary processing involves basic cleaning, grading, and packaging.
  • Secondary processing alters the basic product to a stage just before final preparation.
  • Tertiary processing leads to high-value-added ready-to-eat foods.

Government Schemes for Food Processing

Pradhan Mantri Kisan Sampada Yojana (PMKSY):

  • Aims to develop modern food processing infrastructure.
  • Includes 41 Mega Food Parks, 376 Cold Chain projects, 79 Agro-Processing Clusters, and more.
  • Allocated Rs 6,000 crore, extended till March 2026 with Rs 4,600 crore.

Pradhan Mantri Formalisation of the Micro Food Processing Enterprises Scheme (PMFME):

  • Launched on June 29, 2020.
  • Aims to improve existing microenterprises, formalize the sector, and provides financial assistance to Self-Help Groups (SHGs)

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI):

  • Aims to boost domestic manufacturing, increase exports, and support food manufacturing entities.
  • Indian Food Processing market expected to reach $535 billion by 2025.
  • Approved with an outlay of Rs. 10,900 crore for Aatmanirbhar Bharat.

Significance of Food Processing in India

Market Growth and Opportunities:

  • Indian food processing market growing at a CAGR of 15.2%, estimated to reach $535 billion by 2025.
  • Production Linked Incentive (PLI) Scheme introduced to enhance manufacturing capabilities.

Exports and Rankings:

  • India ranks first in dairy production globally but 46th in exports.
  • Second-largest vegetable producer but 15th in exports.
  • Second in cereals, fruits, and nuts production, but ranks 5th and 25th in exports respectively.
  • Processed food category exports growing faster than unprocessed food.

Special Focus Sector and Regional Initiatives:

  • Food Processing designated as a Special Focus Sector in the National Manufacturing Policy.
  • Mission Organic Value Chain Development in the North East Region (MOVCDNER) launched.
  • Subsidies provided for organic inputs to farmers in the North East.

Future Plans:

  • Aim to quadruple marine product exports to Rs. 1 lakh crore from Rs. 50,000 crore in the next five years.
  • Government plans to build 10,000 new Farmer Producer Organizations (FPOs) to boost farm-gate food processing and support ‘Make in India’.

Conclusion:

  • Food processing emerges as a crucial solution to reduce food waste, with government schemes and initiatives paving the way for growth, sustainability, and global competitiveness.

10. Leveraging Vocal for Local.

Rationale for Vocal for Local:

  • The COVID-19 pandemic resulted in agrarian distress, increased unemployment, and decreased female labour participation.
  • ‘Vocal for Local’ can drive self-reliance, inclusive growth, rural transformation, and steady recovery.
  • Aligns with Mahatma Gandhi’s vision of self-sufficient, self-reliant communities using local resources and eco-friendly technologies.

Objectives of Vocal for Local:

  • Encourage rural development by promoting local production, supply networks, and brands.
  • Make local products competitive with international brands.
  • Support small businesses with limited resources and markets.
  • Foster a preference for buying and consuming local items among Indians.

Framework to Leverage Vocal for Local:

Comprehensive Profiling:

  • Begin with mapping local resources, demand, and supply at the village level.

Panchayat Initiatives:

  • Panchayats should visit local businesses, understand needs, challenges, and opportunities.
  • Assist enterprises in benefiting from government schemes and programs.

Gram Panchayat Development Plan (GPDP):

  • Identify sectors, sub-sectors, and activities with business potential.
  • Prioritize resource allocation based on identified potential.

Convergence Framework:

  • Connect entrepreneurs with various programs like SFURTI, Van Dhan Vikas Kendra, ODOP, CDP, CFCs, etc.

Community Resource Persons (CRPs):

  • Include roles like Kisan Sakhi/Krishi Sakhi, Pasu Sakhi, Doctor Didi, CRP-EP, Bank Mitras, e-CRPs.
  • Key responsibilities include ensuring benefits reach intended beneficiaries.

Training and Capacity Building:

  • Regularly improve training and capacity building of CRPs.
  • Keep them informed about policy changes and equip them with new skills for successful implementation of livelihood schemes.

Digital Transformation:

  • Ministry of Textiles partners with India Post to leverage Common Service Centres (CSCs).
  • Enable artisans to go online with their products, enhancing competitiveness.

Developmental Impact:

  • ‘Vocal for Local’ has the potential to encourage self-sufficiency, economic expansion, and create opportunities.
  • Reduces dependency on imports and provides a boost to small, micro, and SHG-based businesses.

Conclusion:

‘Vocal for Local’ is a strategic approach that, when implemented through a well-defined framework, can stimulate economic growth, empower local businesses, and contribute to India’s path of becoming the third-largest economy globally.


11. BOOSTING INNOVATION: TRANSFORMING MANUFACTURING

Make in India Overview:

  • Aims to transform India into a manufacturing hub.
  • Focus on domestic manufacturing, attracting foreign investments, and encouraging innovation.
  • Simplifies the process of doing business.

Innovation in Make in India:

  • Values innovation, supporting entrepreneurs.
  • Offers financial incentives, tax benefits, and subsidies.
  • Promotes technology transfer and global collaboration.

Manufacturing Sector:

  • Contributes 17% to GDP, employs 27.3 million.
  • Government targets 25% output share by 2025.
  • GST unifies the market, drawing significant investor interest.

Global Leadership in AI:

  • India chairs the Global Partnership on Artificial Intelligence (GPAI) and G20.
  • GPAI fosters responsible AI development through global collaboration.

Sectors Boosting Make in India:

Automotive Sector:

  • Global giants investing, targeting a $300 billion industry.
  • Aims for 65 million jobs, aligning with sustainability goals.

Renewable Energy:

  • Growth in solar energy reflects commitment to combat climate change.
  • India emerges as a global leader in solar power generation.

Electronics Hardware Manufacturing:

  • Plays a pivotal role in ‘Make in India’ and ‘Digital India.’
  • Focus on Electronics System Design and Manufacturing for global leadership.

Food Processing:

  • Thrives under Make in India with cold chain projects and Mega Food Parks.
  • Bridges agriculture and industry.

AI & Robotics:

  • India’s commitment is evident with the inauguration of its first AI and robotics park.
  • Revolutionizing industries, fostering innovation, and economic progress.

Open Network for Digital Commerce (ONDC):

  • Empowers Indian enterprises and entrepreneurs.
  • Reflects India’s dedication to self-sufficiency and innovation in digital commerce.

Conclusion:

  • Initiatives like ‘Make in India’ showcase India’s commitment to economic progress, innovation, and self-reliance.
  • It paved the way for India to emerge as a significant global player in innovation, job generation, and sustainable advancement.

12. RENEWABLE ENERGY : MAKING INDIA SELF-SUFFICIENT.

India’s Renewable Energy Landscape:

Economic Position:

  • Fastest-growing economy globally, ranking as the 5th largest.
  • Imports over 80% of crude oil, emitting CO2 as the 4th largest contributor.

Renewable Energy Targets:

  • Aims to cut carbon emissions by 1 billion tons by 2030.
  • Targets net-zero emissions by 2070.
  • Ranks 4th globally in renewable energy capacity.

Initiatives and Targets:

  • COP26 target: 500 GW of non-fossil fuel-based energy by 2030.
  • Comprehensive efforts to enhance renewable energy capacity.

Benefits of Renewable Energy:

  • Sustainability: Cleaner, greener, and more sustainable energy sources.
  • Employment Opportunities: Newer technology translates to increased job opportunities.
  • Market Assurance: Provides market and revenue assurance.
  • Power Supply Goals: Aims for 24*7 power supply and sustainable transport.

Central Government Initiatives:

  • Wind Energy Program: Targets 60 GW capacity by 2022.
  • FDI in Renewable Energy: Stood at $251 million in Q3 FY 2023. Top investors include Singapore, Mauritius, the Netherlands, and Japan.
  • Cost Reduction: Solar power cost reduced by 84% since 2010. Wind power cost reduced by 49% in the past decade.
  • Innovations: Pioneer in floating solar technology. Home to the world’s largest solar park (Pavagada Solar Park, Karnataka).
  • PMKUSUM: Launched to harness solar energy capacities of 30,800 MW by 2023.

Government Measures:

  • FDI Permitted: Foreign Direct Investment up to 100% under the automatic route.
  • Transmission Charges Waiver: Waiver on interstate transmission charges for solar and wind energy projects up to June 2025.
  • Ultra Mega Renewable Energy Parks: Setup to provide land and transmission on a plug-and-play basis.
  • Green Energy Corridor: New transmission lines and sub-station capacity to evacuate renewable power.
  • Bidding Guidelines: Standard bidding guidelines for competitive bidding in solar and wind projects.
  • Grid Integration Challenges: A major challenge in integrating renewables into the grid. Struggles with storage capacity and grid infrastructure.
  • Future Focus: Emphasis on hydrogen fuel cells, electric vehicles, and bio-CNG. Need for sustainable power supply in agriculture.

Challenges and Solutions:

  • Grid Integration Challenges: Green Energy Corridor project to improve transmission infrastructure. Need for rectifying agricultural subsidies for energy conservation.
  • Future Technologies: Emphasis on hydrogen fuel cells and electric vehicles. Working towards a sustainable, round-the-clock power supply.

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