Syllabus

• Mains – GS 2 & GS 3

Context: The International Day for the Eradication of Poverty (IDEP) – is observed annually on October 17 since 1992.

Background: –

• The theme for 2024 IDEP is “Ending Social and Institutional Maltreatment, Acting Together for Just, Peaceful, and Inclusive Societies”.

Key takeaways

• As per the international poverty line set by the World Bank, anyone living on less than $2.15 a day is in extreme poverty.

Poverty measurement in India

• According to the Household Consumption Expenditure Survey for 2022-23, less than 5 per cent of Indians are now expected to live below the poverty line. However, the release of the report set in motion debates around the poverty line used to estimate the extent of deprivation.

The evolution of poverty estimates in India

• In 1971, V N Dandekar and N Rath defined the poverty line based on calorie consumption (2,250 calories per person per day, based on National Sample Survey data of 1960-61), setting it at Rs 15 for rural and Rs 22.5 for urban areas.
• In 1979, the Y K Alagh Task Force set poverty lines based on calorie needs of 2,400 calories (rural) and 2,100 calories (urban), which remained the official method until the 1990s. However, this methodology for estimating poverty at the national and state levels has been critiqued by many for giving an inappropriate picture of poverty.
• In 1989, the Planning Commission formed the Lakdawala Expert Group to “look into the methodology of estimating poverty and to redefine the poverty line, if necessary”. The Lakdawala Committee in 1993 introduced state-specific poverty lines, adjusting for regional price differences, but faced criticism for not maintaining the original calorie norms.
• With the criticisms for the Lakdawala Committee mounting, the Tendulkar Expert Group was formed in 2005 to review the methodology for poverty estimation. The Tendulkar Committee recommended five main changes:
  • Shift from Calorie Consumption: The committee recommended moving  away from calorie consumption as the sole indicator of poverty. Instead, it  proposed a more comprehensive approach that includes both food and  non-food items.
  • A uniform poverty line basket for both rural and urban areas.
  • A change in the price adjustment procedure to correct spatial and temporal issues with price adjustment.
  • Incorporation of private expenditure on health and education while estimating poverty (earlier poverty lines assumed that health and education would be provided by the State and formulated poverty lines accordingly);
  • The use of Mixed Reference Period instead of Uniform Reference Period
• In 2009, the Tendulkar Committee submitted its report of estimated poverty lines for rural and urban areas in all states. It concluded that the all India poverty line in 2004-05 was Rs 446.68 and Rs 578.80 per capita per month in rural and urban areas respectively.
• According to the Lakdawala Committee, the percentage of the population living below the poverty line in 2004-05 was 28.3 per cent in rural areas and 25.7 per cent in urban areas. The same according to the Tendulkar Committee report was 41.8 per cent in rural areas and 25.7 per cent in urban areas.
• The Tendulkar Committee further recommended a new method to update the poverty lines, adjusting for changes in prices and patterns of consumption, using the consumption basket of people close to the poverty line. Thus, the national poverty lines for 2011-12 are Rs 816 and Rs 1,000 per capita per month for rural and urban areas respectively.
• The Tendulkar Committee report faced widespread criticism and the Rangarajan Committee was set up in 2012 to address these issues. The report was submitted in 2014 and the old practice of having separate all-India rural and urban poverty line baskets and deriving state level poverty lines from these was brought back. The report raised the monthly per capita consumption expenditure to Rs 972 and Rs 1407 in rural and urban areas respectively.
• The government, however, did not take a call on the Rangarajan Committee report. The last official poverty data was released in July 2013 which was estimated based on the Tendulkar line for 2011-12. According to this, 21.9 per cent of the population in India lived below the poverty line.

Source: Indian Express

 Syllabus

• Mains – GS 3

Context: Recently, Prime Minister Narendra Modi announced a $500 billion (Rs 4.20 lakh crore) target for electronics manufacturing in India by 2030.

Background: –

• The ambition is audacious – India’s entire manufacturing output in 2023-24 was roughly $660 billion (Rs 55.4 lakh crore).

Key takeaways

Cluster-Based Growth:

• Historically, manufacturing growth has thrived in regional clusters. The electronics industry, from Silicon Valley to Shenzhen, has followed this model.
• In India, clusters like Sriperumbudur (Tamil Nadu) and Noida (Uttar Pradesh) contribute nearly 50% of India’s electronics exports.
• India’s focus must be on achieving export competitiveness at scale to drive growth in electronics manufacturing.
• To sustain and accelerate growth in electronics, we need deep and ambitious region-led reform that can create large, globally competitive electronics manufacturing regions.

Special Electronics Manufacturing Zones:

• To address land acquisition challenges, the government should develop large electronics manufacturing zones around existing clusters.
• Example: Declaring 300 sq km regions for electronics manufacturing, incorporating factories and new parks. Electronics factories can employ thousands and it is important to house workers close to factories. Large zones make it possible to have social infrastructure like worker housing, schools, hospitals and recreation facilities.
• Within the zones, the focus needs to be on attracting lead brands and their partners as anchor investors and they can, in turn, attract their downstream partners.

Importance of Scale:

• Global competitors like Shenzhen (2,000 sq km) employ 4.6 million workers and export over $300 billion.
• Comparatively, Indian clusters like Mundra EMC are much smaller (2.5 sq km with 5,000 workers), necessitating expansion.

Pro-Employment Labour Reforms:

• Indian electronics regions need pro-employment labour laws, including longer shifts, competitive overtime rules, and the removal of restrictions on employing women (who form a majority of the workforce).

Taxation and Tariff Reforms:

• India needs to ease cross-border inventory management. Electronics manufacturing requires movement of components. Extremely specialised supply chain participants mean that much of this movement is cross-border. Thus, all countries like Vietnam, China, etc., already allow foreign vendors or brands to manage component inventory seamlessly across borders without tax or tariff implications.
• Corporate tax and GST rates too need to be benchmarked against those in Vietnam and China to attract large global players.

Regulatory Environment:

• Indian factories face numerous regulations (building codes, pollution norms, etc.) that are globally uncompetitive.
• Within designated electronics manufacturing regions, regulatory relaxation should be allowed to create a conducive environment for manufacturing.

Devolution of Powers:

• Electronics Manufacturing Cluster (EMC) authorities should be granted devolved powers from central and state governments to ensure responsive and efficient governance.
• Adopting PPP models for managing these regions can ensure high-quality, plug-and-play parks for speedy execution.

Learning from Global Best Practices:

• Successful regions like Shenzhen highlight three factors for success:
  • Large size with anchor investors.
  • Customised regulations to suit export-led manufacturing.
  • Devolution of administrative powers to the industrial park level.
• The government should create differentially regulated zones for electronics manufacturing, akin to the model used in GIFT City for financial services.
• Without focused and region-led reforms, the $500 billion target for electronics manufacturing will remain unachievable.

Source: Indian Express

 Syllabus

• Prelims – CURRENT EVENT

Context: 72 countries  have joined the Hand-in-Hand Initiative.

Background: –

• Innovative and targeted approaches to development are in ever-greater demand, as underscored by growing participation in the Hand-in-Hand Investment Forum 2024.

Key takeaways

• The Hand-in-Hand Initiative is an evidence-based, country-led, and country-owned initiative of the Food and Agriculture Organization of the United Nations.
• Its primary goal is to accelerate agricultural transformation and sustainable rural  development to eradicate poverty (SDG1) and end hunger and all forms of  malnutrition (SDG2).

Key Features:

• Integrated Analyses: The initiative provides integrated analyses that identify key  interactions, synergies, and trade-offs among actions to accelerate economic growth, ensure social inclusion, and  promote sustainable use of biodiversity and natural resources.
• Geospatial Modeling and Analytics: The initiative uses advanced geospatial  modeling and analytics to identify opportunities with the greatest potential for  alleviating poverty and hunger.
• Partnership-Building Approach: The initiative brings together beneficiary countries with donors,private sector organizations, international financial institutions,  research institutions, and civil society to mobilize means of implementation.
• Focus Areas: The initiative prioritizes countries and territories where poverty and  hunger are highest, national capacities are limited, or operational challenges are  significant.

Food and Agriculture Organization (FAO)

• The Food and Agriculture Organization (FAO) was established on 16 October 1945 as a specialized agency of the United Nations (UN).
• Headquarters: Rome, Italy.
• Objective: FAO’s main goal is to lead international efforts to defeat hunger and improve nutrition and food security by promoting sustainable agriculture and rural development.
• Key Mandates:
  • Achieving food security for all.
  • Raising levels of nutrition and standards of living.
  • Increasing agricultural productivity and ensuring sustainable management of natural resources (land, water, air, climate, and genetic resources).

Key Programs and Initiatives:

• Hand-in-Hand Initiative: Focuses on eradicating poverty and ending hunger through targeted investments.
• Globally Important Agricultural Heritage Systems (GIAHS): Recognizes traditional agricultural systems with cultural, ecological, and agricultural significance.
• State of Food Security and Nutrition in the World (SOFI): An annual report by FAO tracking global progress towards ending hunger.
• Members: The FAO has 195 members, including 194 countries and the European Union.
• Key Reports:
  • FAO publishes several important reports, such as:
  • State of World Fisheries and Aquaculture.
  • State of Food and Agriculture.
  • Global Forest Resources Assessment (GFRA).

Source: FAO

 Syllabus

• Prelims – ENVIRONMENT

Context: Gandhi Sagar Sanctuary is set to reintroduce cheetahs.

Background:

• It will make Gandhi Sagar the second site in India to host cheetahs, after Kuno National Park.

About Gandhi Sagar

• Located in Madhya Pradesh, near the Chambal River, spread across the districts of Mandsaur and Neemuch.
• Established in 1974 to protect the unique biodiversity of the region.
• It sits atop a flat rocky plateau, with the Chambal river cutting the sanctuary into two almost equal halves. Due to the rocky terrain and exposed sheetrock, the topsoil is shallow. This is behind Gandhi Sagar’s savanna ecosystem comprising open grasslands interspersed with dry deciduous trees and shrubs. The riverine valleys, however, are evergreen.
• World famous Chaturbhuj Nala rock shelters are also part of Gandhi Sagar wildlife sanctuary.

Geographical Features:

• The sanctuary surrounds the Gandhi Sagar Dam, which is built on the Chambal River. Gandhi sagar is the second largest reservoir (in area) in the country, next only to Hirakud in Orissa.
• It has a mix of dry deciduous forests and grasslands.

Flora and Fauna:

• Flora: The sanctuary hosts typical dry deciduous vegetation such as teak, khair, and salai.
• Fauna: Notable species include leopard, nilgai, chinkara, wild boar, and various bird species like peafowl and partridges.
• The sanctuary is part of the Chambal River ecosystem, which is crucial for conserving endangered species like the gharial (Indian crocodile) and gangetic dolphins.
• Chambal River: The river is known for its clean waters and as a critical habitat for the gharial, mugger crocodile, and Indian skimmer.

Source: Times of India

 Syllabus

• Mains – GS 3

Context: The International Energy Agency (IEA) World Energy Outlook 2024 outlines a future where EV adoption continues to gain momentum, potentially displacing up to 6 million barrels per day of oil demand by 2030.

Background: –

• The World Energy Outlook (WEO) is an annual report published by the IEA. It provides in-depth analysis and strategic insights into every aspect of the global energy system.

Major Highlights of the World Energy Outlook 2024 Report:

• The global energy security is threatened due to the ongoing geopolitical tensions, such as the Russia-Ukraine war and tensions in the Middle East.
• Clean Energy Transitions Accelerating: Clean energy investments, particularly in solar and wind power have reached record highs.
• Renewable energy is expected to become the dominant source of electricity, surpassing coal, oil, and gas by 2030.
• The second half of the 2020s is expected to see a surplus in oil and liquefied natural gas (LNG) supply, leading to downward pressure on prices.
• The electric vehicle (EV) market is rapidly expanding globally, with EVs expected to account for 50% of new car sales by 2030.
• There has been intense competition among suppliers of clean energy technologies, such as solar PV and battery storage.
• The global energy systems are experiencing challenges due to the increasingly visible effects of climate change, such as extreme weather events.
• One of the keys to cutting emissions is improving energy efficiency, but the report shows that the global target of doubling efficiency by 2030 is unlikely to be met with current policies.

Key Observations Related to India:

• It noted that India was the fastest-growing major economy in 2023, with a 7.8% growth rate, and is set to become the world’s third-largest economy by 2028.
• Due to rapid economic growth and urbanisation, India is set to experience the highest increase in energy demand globally over the next decade. The total energy demand is expected to rise by nearly 35% by 2035.
• Coal remains a critical part of India’s energy mix, despite its ambitious renewable energy targets.
• Government initiatives like the PM-KUSUM scheme for solar energy in agriculture, the National Solar Mission, and the Production Linked Incentive (PLI) Scheme for manufacturing solar PV modules are supporting India’s clean energy ambitions.
• India’s industrial sector is poised for major growth by 2035. Iron and steel production is expected to rise by 70%, while cement production is projected to increase by 55%.
• The country is on track to nearly triple its electricity generation capacity to 1,400 GW by 2035.
• India is set to have the world’s third-largest installed battery storage capacity, crucial for integrating variable renewables like solar and wind by 2030.
• The stock of air conditioners in India is projected to grow more than 4.5 times by 2035, causing electricity demand from cooling to surge. The energy required for air conditioning alone in 2035 will exceed Mexico’s total projected electricity consumption for that year.
• One of the key components of India’s energy strategy is its goal of achieving net zero emissions by 2070.

Issues/Challenges Cited in the Report:

• Global energy security and global energy supplies are threatened due to geopolitical tensions, like the war in Ukraine.
• Very few countries produce clean energy technologies, like solar panels and batteries which creates risks if supplies are disrupted.
• Developing countries are facing the challenge of funding renewable energy projects due to high expensive costs.
• Many countries lack the grid capacity to handle the fast-growing renewable energy supply, leading to the underuse of solar and wind power.
• There is a continued Reliance on fossil fuels like coal, oil, and gas in energy use, Despite the growth in renewables which is slowing the shift to clean energy.
• There is extra pressure on energy systems to increase their resilience due to extreme weather events, like heat waves and floods.

Source: Economic Times

Q1.) Consider the following statements regarding the Food and Agriculture Organization (FAO):

1. FAO is a specialized agency of the United Nations that leads international efforts to eliminate hunger.
2. The FAO is headquartered in Rome, Italy.
3. India is not a member of the FAO.

Which of the statements given above is/are correct?

a) 1 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2, and 3

Q2.) Which of the following statements is correct about Gandhi Sagar Sanctuary?

1. Gandhi Sagar Sanctuary is located in the state of Rajasthan.
2. It surrounds the Gandhi Sagar Dam on the Chambal River.
3. The sanctuary is known for its dry deciduous forests and grasslands.

Select the correct answer using the codes given below:

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2, and 3

Q3.) Consider the following statements regarding the International Energy Agency (IEA):

1. The IEA was established in response to the 1973 oil crisis to ensure reliable and affordable energy for its member countries.
2. India is a founding member of the International Energy Agency.
3. The IEA works to promote renewable energy sources, energy security, and environmental sustainability.

Which of the statements given above is/are correct?

a) 1 and 3 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2, and 3

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  18th October 2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) –  a

Q.2) – a

Q.3) – a