UPSC Daily Current Affairs- 16th November 2022 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-II

Context

NITI Aayog has not taken any major steps since its constitution to promote cooperative federalism. Contrary to its public statements on promoting cooperative federalism, the Government of India has been accused of doing exactly the opposite. The following instances clearly demonstrate as to how the central government’s policies have undermined the spirit of federalism and eroded the autonomy of the States.

Why the states are angry over hypocrisy of the Centre?

• Centre raises off budget borrowings states are restricted: The borrowings by corporations against State guarantees are mostly used for capital investment. The Centre has also been raising off Budget borrowings but mainly for meeting revenue expenditure.
• CAG report on extra budgetary resources: The Comptroller and Auditor General of India (C&AG) Report on the Compliance of FRBM Act for 2017-18 and 2018-19 pointed out as many as eight instances of meeting revenue expenditure through Extra Budgetary Resources (EBR).
• Unjustified limitations on states: Revenue expenditure met through EBR by the Centre amounted to ₹81,282 crore in 2017-18 and ₹1,58,107 crore in 2018-19. Such borrowings were not reflected in the Budget of the central government. In view of this, treating off Budget borrowings of State corporations as States’ borrowings retrospectively is totally unjustified.

Unhappiness about the grants by the finance commission’s recommendations?

• Special grants are not given to states: The Fifteenth Finance Commission, in its first report, had recommended a special grant to three States amounting to ₹6,764 crore to ensure that the tax devolution in 2020-21 in absolute terms should not be less than the amount of devolution received by these States in 2019-20. This recommendation was not accepted by the Union Government.
• Nutritional grants are accepted: the recommendation relating to grants for nutrition amounting to ₹7,735 crore was not accepted.
• Grants to states are refused by the Centre: A similar approach has been followed by the Union Government with regard to grants to States recommended by the Finance Commission for the period 2021-26.
• Sector and state specific grants: The sector specific grants and State specific grants recommended by the Commission amounting to ₹1,29,987 crore and ₹49,599 crore, respectively, have not been accepted. This clearly demonstrates that the Union Government has undermined the stature of the institution of the Finance Commission and cooperative federalism.

How borrowing of the states is controlled by the Centre?

• Changes in off budget borrowing norms: decision to treat off Budget borrowings from 2021-22 onwards serviced from the State budgets as States’ borrowings and adjusting them against borrowing limits under Fiscal Responsibility and Budget Management (FRBM) in 2022-23 and following years is against all norms.
• No recommendations by finance commission: This is the first time that the Government of India is proposing to treat off Budget borrowings as government borrowings retrospectively from 2021-22. The Government of India has indicated that such a decision is in accordance with the recommendation of the Finance Commission. In fact, there is no recommendation to this effect by the Fifteenth Finance Commission. The Finance Commission recommended that governments at all tiers may observe strict discipline by resisting any further additions to the stock of off Budget transactions.
• No amendment to FRBM act: It observed that in view of the uncertainty that prevails now, the timetable for defining and achieving debt sustainability may be examined by a high-powered intergovernmental group and that the FRBM Act may be amended as per the recommendations of this group to ensure that the legislations of the Union and the States are consistent. No such group has been appointed so far by the Centre.

Cess and Surcharge- A tool to raise revenue for Centre not available states

• Rising share of cess and surcharges: The government has been resorting to the levy of cesses and surcharges, as these are not shareable with the States under the Constitution. The share of cesses and surcharges in the gross tax revenue of the Centre increased from 13.5% in 2014-15 to 20% in the Budget estimates for 2022-23.
• States don’t get all share in divisible pool: Though the States’ share in the Central taxes is 41%, as recommended by the Fifteenth Finance Commission, they only get a 29.6% share because of higher cesses and surcharges.
• Undermining the purpose of cess: The C&AG in its Audit Report on Union Government Accounts for 2018-19 observed that of the ₹2,74,592 crore collected from 35 cesses in 2018-19, only ₹1,64,322 crore had been credited to the dedicated funds and the rest was retained in the Consolidated Fund of India. This is another instance of denying States of their due share as per the constitutional provisions.
• Increasing centrally sponsor scheme and burden on state: Committee after committee appointed by the Government of India has emphasised the need to curtail the number of Centrally Sponsored Schemes (CSS) and restrict them to a few areas of national importance. But, what the Government of India has done is to group them under certain broad umbrella heads (currently 28). In addition, in 2015, the Centre increased the States’ share in a number of CSS, thereby burdening States. Most of the CSS are operated in the subjects included in the State list. Thus, States have lost their autonomy.
• NITI Aayoge recommendations are not accepted: The Sub-Committee of Chief Ministers appointed by NITI Aayog has recommended a reduction in the number of schemes and the introduction of optional schemes. These recommendations have not been acted upon.

Conclusion

• Finance commission is balancing wheel of fiscal federalism. Share of states in central taxes may have increased but cess and surcharges have also increased. Off budget borrowing on states can lifted provided should reduce the unnecessary freebies in the state budget.

Source: The Hindu

Context

Securities and Exchange Board of India (SEBI) has come out with a regulatory framework for online bond platform providers in a bid to streamline their operations.

• Online Bond Platform Providers (OBPPs) would be companies incorporated in India and they should register themselves as stock brokers in the debt segment of the stock exchange, as per the framework that would be effective immediately.

What is the Need for a Regulatory Framework?

• With the bond market offering tremendous scope for development, particularly in the non-institutional space, there is a need to place checks and balances in the form of transparency in operations and disclosures to the investors dealing with such Online Bond Platforms (OBPs), measures for mitigation of payment.
• During the past few years, there has been an increase in the number of OBPPs offering debt securities to non-institutional investors. Most of them are fintech companies or are backed by stock brokers.
• There has been a significant increase in the number of registered users who have transacted through them.
• Operations of OBPs were outside SEBI's regulatory purview.

What are the New Rules?

• After obtaining registration as a stock broker in the debt segment of a stock exchange, an entity would have to apply to the bourse to act as an OBPP.
• The new rules mandate registration certificate as a stock broker from SEBI to act as an online bond platform provider.
• Those acting as an online bond platform provider without registration certificate provider prior to 9^th november 2022 continue to do so for a period of three months.
• People will have to comply with the conditions of registrations as specified by the SEBI from time to time.
• The entity would have to ensure compliance with the minimum disclosure requirements. It would also have to disclose on its platform all instances of conflict of interest, if any, arising from its transactions or dealings with related parties.

What Is the Bond Market?

• Bonds:
  • Bonds are units of corporate debt issued by companies and securitized as tradeable assets.
  • A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders.
  • Variable or floating interest rates are also now quite common.
  • Bond prices are inversely correlated with interest rates: when rates go up, bond prices fall and vice-versa.
• Types of Bonds:
  • Convertible Bond:
    • Unlike regular bonds that are redeemed upon maturity, a convertible bond gives the purchaser a right or an obligation to convert the bond into shares of the issuing company.
    • It features a fixed tenure and pays out interest payments periodically at predetermined intervals.
  • Fixed Coupon Rate Bonds:
    • In these types of bonds, the interest is fixed from the date of issue. Most of the corporate and government bonds are of fixed coupon rate and the interest or coupon is provided annually, semi-annually, quarterly or monthly till the redemption date.
  • Floating Coupon Rate Bonds (FRB):
    • In these bonds, the coupon rate fluctuates at a predefined time till the date of maturity. Here interest rate depends on a benchmark which it follows to determine the coupon rate in each coupon payment. In the case of FRB Bond, the coupon rate depends on the T-bills yield.
  • Zero Coupon Bonds:
    • These bonds are those bonds where the issuer does not provide any coupon payment to the holder till the maturity date. Here the bonds are issued below the face value amount and on the date of redemption or maturity. Bonds are redeemed on the face value amount. Here the difference between the redemption price and the issue price is the return for an investor. In India, Treasury-Bills are the Zero-Coupon Bonds.
  • Cumulative Coupon Rate Bonds:
    • These bonds are issued with a coupon rate but the coupon payment is done at the time of redemption. Usually, corporates issue these types of bonds.
  • Inflation Indexed Bonds:
    • These bonds provide protection from inflation. It is primarily issued by the government. Here the coupon rate is dependent on the inflation rate. Usually, the coupon rate equals the inflation rate and the additional rate provided over the inflation rate.
  • Sovereign Gold Bonds (SGBs):
    • As per the Reserve Bank of India SGBs are government securities denominated in grams of gold.
    • These are the substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
  • Bond Market:
    • The bond market broadly describes a marketplace where investors buy debt securities that are brought to the market by either governmental entities or corporations.
    • National governments generally use the proceeds from bonds to finance infrastructural improvements and pay down debts.
    • Companies issue bonds to raise the capital needed to maintain operations, grow their product lines, or open new locations.
    • Bonds are either issued on the primary market, which rolls out new debt, or traded on the secondary market, in which investors may purchase existing debt via brokers or other third parties.
  • Online Bond Platform:
    • As per SEBI, it is an electronic system other than a recognised stock exchange or an electronic book providing platform, on which debt securities are listed or proposed to be listed are offered and transacted.
    • The online bond platform provider means any person operating or providing such a platform.

Source: Indian Express

GS -III

Context

The spectre of terrorist violence looms large over the world. With the technological advancement terrorists, criminals, weapons and funds are also able to move across national boundaries easily. India is increasingly playing a leading role in curbing the terror financing.

What is Terror Financing?

• Terrorist financing encompasses the means and methods used by terrorist organizations to finance their activities.
• This money can come from legitimate sources, for example from profits from businesses and charitable organizations.
• However, terrorist groups can also get their funds from illegal activities such as trafficking in weapons, drugs or people, or kidnapping for ransom.
• Nations like Pakistan has stated policy of supporting cross-border terrorism in India through global funding.

What are the channels of free flow of funds?

• The global flow of funds has three traditional channels:
  • Direct smuggling of cash: First, direct smuggling of cash through international borders.
  • Use of Hawala: Second, the use of hawala networks.
  • Banking Networks: Third, banking networks including SWIFT and other international channels.
  • Use of new technologies: But now swift technological developments in areas of blockchain or cryptocurrencies which transcend national boundaries and international currency systems have emerged as a new channel for financing terrorist and other illegal activities.

What are the identified sources of funds used by Terrorist organizations?

• Legal financial activities: Terrorist organizations raise money through several sources like travel agencies, money changers, real estate, retail outlets, NGOs, charitable trusts and even from state sponsors.
• Sourced form Criminal activities: Terrorists also derive funding from a variety of criminal activities ranging in scale and sophistication from low-level crime to organized fraud or narcotics smuggling or illegal activities in failed states and other safe havens.
• For instance: Declassified files seized during the raid on Osama bin Laden’s Abbottabad hideout also revealed terror financing related documents.

What steps could be taken to uproot terror financing methods?

• Identifying the funding requirements: The first step in identifying and forestalling the flow of funds to terrorists is to understand the funding requirements of modern terrorist groups.
• Understanding the ideology and financing the requirements: The costs associated not only with conducting terrorist attacks, but also with developing and maintaining a terrorist organisation and its ideology are significant. Funds are required to promote a militant ideology, pay operatives and their families, arrange for their travel, train new members, forge documents, pay bribes, acquire weapons and stage attacks.
• Tracing the methods of fund flow: Terrorists use a wide variety of methods to move money within and between organisations, including the financial sector, physical movement of cash by couriers, and movement of goods through the trade system. Charities and alternative remittance systems have also been used to disguise terrorist movement of funds.
• Monitoring the ambiguous financial intelligence: Only accurate and well linked financial intelligence can reveal the structure of terrorist groups and also the activities of individual terrorists. Of late, such financial intelligence from the private sector has also given significant clues to foil terrorist acts.

How India is leading the battle against terror financing?

• India’s continues efforts: Prime Minister Narendra Modi has in all his international speeches spoken at length on this. India’s efforts in taking this momentum forward need to be appreciated.
• India actively providing platform for various assemblies: Recently, the 90th Interpol General Assembly held in New Delhi, followed by a special session of UN Security Council’s Counter Terrorism in late October. In the third week of November, India will host another global conference focussed only on Countering Financing of Terrorism (CFT).
• CTC adopted Delhi Declaration: The Counter-Terrorism Committee (CTC) unanimously adopted the Delhi Declaration on countering the use of new and emerging technologies for terrorist purposes. The declaration aims to cover the main concerns surrounding the abuse of drones, social media platforms, and crowdfunding, and create guidelines that will help to tackle the growing issue.
• India will host ‘No Money for Terror’ Conference: The Ministry of Home Affairs will organise the Third Ministerial ‘No Money for Terror’ Conference. where participants from 75 countries expected to attend the conference. The conference that was first held In Paris in 2018, followed by Melbourne in 2019.

What are the international efforts to tackle the menace of terror financing?

• Foundation of FATF: Financial Action Task Force (FATF) was formed in 1989 as a means of bringing order and implementing standards to the monetary system in the world with regard to terror finance and money laundering.
• Adopting the resolutions with time: It was the 2001 terrorist attacks that changed the way security agencies looked at terror financing. The UNSCR resolution 1267 in 1999 and UNSCR resolution 1373 in 2001 formed the bedrock of the financial sanctions’ regime for terrorist organisations and individuals.
• FATF’s Grey listing: One of the key reasons for Pakistan being placed on the FATF Grey List from 2018 to 2022 was its open defiance of those designations. Only after the FATF’s grey listing open terrorist activities stop and the terrorist infrastructure in Pakistan declined to some extent.
• UNSC sanctions and designations: It is pertinent to understand that the FATF has developed its entire paradigm around the word risk. It used the United Nations Security Council sanctions against terrorists and terrorist organizations to begin to evolve a complex body of documentation in order to assess technical compliance and effectiveness of countries in implementing those UN designations. Eight of the nine UN designated terrorists were arrested and convicted in a major testimony to the success of the UN sanctions regime.

Conclusion

• The UN Security Council has sought to increase efforts against terror financing. It is only through inclusive efforts that this complex issue can be addressed. India’s hosting of the “No money for terror” conference later this month should go a long way in focusing on the issue of state sponsored terror financing.

Source: Indian Express

Context

The use of technology in financial inclusion stands to be pertinent in today’s context as it paves the way towards inclusive growth through the upliftment of disadvantaged sections of society.

Importance of Financial Inclusion

• Meaning of Financial inclusion: It refers to the availability to both individuals and companies of useful and cost-effective financial goods and services, including payments, transactions, savings, credit, and insurance, that are sustainably and ethically provided.
• Provides social mobility: The importance of financial inclusion lies in the fact that it allows social mobility. These resources help empower individuals and foster communities, which can aid in promoting economic growth.
• More financial services: Moreover, account holders are more likely to utilize additional financial services such as credit and insurance to launch and grow enterprises, make investments in their children’s or own health or education, manage risk, and recover from financial setbacks, all of which can enhance their overall quality of life.

Challenges to the financial inclusion

• Inoperative bank accounts: Nearly 80 percent of the Indian population has a bank account, and nearly 18 percent (81.38 million) of bank accounts are inoperative, having “zero balance”. Moreover, up to 38 percent of accounts are inactive, which means that there have been no deposits or withdrawals in the past year, demonstrating that many Indians are still not fully integrated into the formal banking system.
• Poor telecommunication infrastructure: India still needs a robust telecommunication infrastructure with a stable broadband internet connection. Despite progress in increasing technological features with increasing speeds, the inability of the entire country to adapt to these innovations has widened the gap.
• All citizens are not cell phone users: India additionally faces the hurdle of getting its citizens online, with more than 310 million individuals needing a basic cell phone. This prevents account holders from receiving crucial information, such as details relating to account transactions.
• Increasing dependency on local agents: In addition, financial institutions also need to be more willing to deliver messages for transactions of small quantities. These factors have led to an increasing dependency on local agents.

The correlation between Technology, digital divide and financial inclusion

• Rural- Urban digital Divide: There is an evident divide between the urban-rural regions that dominate India. Only 4.4 rural families have computers, compared to 14.4 percent of urban households and 14.9 percent of rural homes have internet connectivity, compared to 42 percent of families in metropolitan regions. Meanwhile, only 13 percent of adults in rural regions have access to the internet, compared to 37 percent in metropolitan areas.
• High lending rates in rural area: Specifically, such gaps are associated with various factors in finance, starting with small-time lenders charging high-interest rates common in rural regions. Access to credit still needs to be solved. Government programmes are yet to reach more remote areas to improve loan availability efficiently.
• Unawareness about Online loans: Individuals find that online loans need more options from reliable financial institutions or digital lending. Additionally, rural clients need help accessing prospective financial services due to complicated banking procedures such as requiring identity credentials and maintaining a specific balance in an account.
• Limited access to technology: The digital divide is also a result of limited access to computer and communication technologies. In India, fewer people can afford the device needed to access digital information.
• Single nationwide approach is problematic: India additionally faces the burden of providing diversified content across different regions, as individuals across India have different mother tongues. Moreover, the number of individuals who have access to computers or are knowledgeable enough to utilise the internet varies too widely between states. Thus, a blanket approach cannot be implemented nationwide.
• Lack of Financial literacy: Indian citizens lack the potential to maximise technological interventions. About 266 million adults are illiterate. The lack of financial literacy has also greatly impeded the growth of financial inclusion, with many financial cyber-crimes peaking in proportion to the growing distrust among rural residents, leading to lower adoption rates and a 6-percent jump in cybercrimes in the same year.
• Concerns of data privacy: As Personal Identifiable Information (PII) guidelines are not strictly enforced and adhered to, large quantities of data are readily accessible to numerous parties, raising serious concerns about data privacy.

What can be done to bridge digital divide for financial inclusion?

• Digital inclusion strategies: It lies in the hands of the government to implement a financial inclusion policy and look at the reasons behind financial exclusion and effectively address them. Information and Communication Technology policies are primarily top-down and supply-focused. Thus, it is necessary to develop financial goods and services focused on the needs of citizens and the disadvantaged. These policies should focus on digital inclusion strategies to ensure that rural areas can access proper internet connectivity.
• Information in regional language: to ensure digital financial inclusion, the government should encourage the middle-aged bracket to educate themselves in reading and writing to use the various facilities they provide. Government websites have information primarily in Hindi and English, excluding large sections of the population. A systemic strategy focused on digital skills, and financial literacy should be implemented in each region, keeping in mind the language barrier and access to technology.
• Focus on vulnerable sections: To combat financial fraud, implementing a one-to-one Management of Financial Services (MFS) agent mentorship programme that focuses on vulnerable populations and teaches them the fundamentals of mobile and online interaction is possible. Additionally, removing the barriers to financial service access for low-income persons by reducing transaction costs could facilitate increased participation, as observed in Nepal, where free and easily accessible accounts were more prevalent among women

Conclusion

The digital divide affects every area of life, including literacy, wellness, mobility, security, access to financial services, etc. Therefore, for a fast-growing nation such as India, the focus needs to shift from simple economic growth to equitable and inclusive growth.

Source: PIB

Context

Recently, the report, titled “Financing India’s Urban Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action” was released by the World bank.

The report underlines the urgent need to leverage more private and commercial investments to meet emerging financial gaps.

What are the Highlights of the Report?

• Investment Required:
  • India will need to invest USD 840 billion over the next 15 years into urban infrastructure if it is to effectively meet the needs of its fast-growing urban population.
• People Living in Urban Cities:
  • By 2036, 600 million people will be living in urban cities in India, representing 40% of the population.
  • This is likely to put additional pressure on the already stretched urban infrastructure and services of Indian cities – with more demand for clean drinking water, reliable power supply, efficient and safe road transport amongst others.
  • Currently, the central and state governments finance over 75% of city infrastructure, while Urban Local Bodies (ULB) finance 15% through their own surplus revenues.
  • Only 5% of the infrastructure needs of Indian cities are currently being financed through private sources.
• Slow Implementation of Centre’s Flagship Urban Missions:
  • There has also been slow implementation performance by states and Urban Local Bodies (ULBs) on several of the Centre’s flagship Urban Missions— such as the Smart Cities Mission (SCM) and the Pradhan Mantri Awas Yojana (PMAY) for instance— due to constraints on implementation capacity at the city level.
  • ULBs across India have so far executed only about one-fifth of the cumulative cost or outlay of approved projects under SCM and (Atal Mission for Rejuvenation and Urban Transformation (AMRUT) over the last six financial years.
• PPP transactions for Urban Infrastructure:
  • Public Private Partnership (PPP) transactions for urban infrastructure in India registered a marked decline in the last decade both in monetary value and transaction volume— 124 PPP projects have been awarded in the urban sector since the year 2000 worth a total cost of USD5.5 billion.
  • However, PPP project awards have declined substantially after a “brief but substantial spike” between the years 2007 and 2012 when most of these projects were awarded. Only one-third of all PPP investments awarded since 2000 came in the last decade— including 55 projects worth USD17 billion,

What are the Suggestions?

• It is recommended to expand the capacities of city agencies to deliver infrastructure projects at scale.
• Currently, the 10 largest ULBs were able to spend only two-thirds of their total capital budget over three recent fiscal years.
• Over the medium term, the report suggests a series of structural reforms including those in the taxation policy and fiscal transfer system.
• It can allow cities to leverage more private financing.
• It recommended making the transfer of funds to cities formula-based and unconditional and increasing the mandates of city agencies gradually.

What is Urbanisation?

• About:
  • Urbanization refers to the population shift from rural to urban areas, the corresponding decrease in the proportion of people living in rural areas, and the ways in which societies adapt to this change.
• Causes of Urbanisation:
  • Natural Increase of Population: It occurs when the number of births exceeds the number of deaths.
  • Rural to Urban Migration: It is driven by pull factors (that attract people to urban areas) and push factors (that drive people away from the rural areas).
    • Employment opportunities, educational institutions and urban lifestyle are the main pull factors.
    • Poor living conditions, lack of educational and economic opportunities and poor health care facilities are the main push factors.
  • Global Urbanisation:
    • The most urbanized regions include Northern America (with 83% of its population living in urban areas (as of 2022), Latin America and the Caribbean (81%), Europe (75%) and Oceania (67%).
    • The level of urbanization in Asia is now approximately 52%.
    • Africa remains mostly rural, with 44% of its population living in urban areas.
• Related Initiatives:
  • India’s Initiatives for Urbanisation:
  • Schemes/Programmes Related to Urban Development:
  • Smart Cities
  • AMRUT Mission
  • Swachh Bharat Mission-Urban
  • HRIDAY
  • Pradhan Mantri Awas Yojana-Urban
  • Government Initiatives for Slum Dwellers/Urban Poor:
  • Pradhan Mantri Garib Kalyan Yojana
  • Atmanirbhar Bharat Abhiyan (self-reliant India)

Source: The Hindu

Context

Recently, India submitted its Long-Term Low Emission Development Strategy to the United Nations Framework Convention on Climate Change (UNFCCC) at ongoing 27^th Conference of Parties (COP27) in Sharm el-Sheikh, Egypt.

What is a Long-Term Low Emissions Development Strategy?

• The LT-LEDS are qualitative in nature and are a requirement emanating from the 2015 Paris Agreement.
• Under the Paris agreement, countries must explain how they will transition their economies beyond achieving near-term Nationally Determined Contributions (NDCs) targets and work towards the larger climate objective of cutting emissions by 45% by 2030 and achieve net zero around 2050.
• The Strategy is based on four key considerations that underpin India’s long-term low-carbon development strategy.
• India has contributed little to global warming, its historical contribution to cumulative global GreenHouse Gases emissions being minuscule despite having a share of ~17% of the world’s population
• India has significant energy needs for development
• India is committed to pursuing low-carbon strategies for development and is actively pursuing them, as per national circumstances
• India needs to build climate resilience
• The LT-LEDS is also informed by the vision of LiFE, Lifestyle for the Environment.
• LiFE calls for a world-wide paradigm shift from mindless and destructive consumption to mindful and deliberate utilization.

What are the Features of the LT-LEDS?

• The strategy will focus on rational utilization of national resources with due regard to energy security.
• The transitions from fossil fuels will be undertaken in a just, smooth, sustainable and all-inclusive manner.
• The strategy will promote increased use of biofuels, especially ethanol blending in petrol, the drive to increase electric vehicle penetration, and the increased use of green hydrogen fuel are expected to drive the low carbon development of the transport sector.
• India aspires to maximize the use of electric vehicles, ethanol blending to reach 20% by 2025, and a strong modal shift to public transport for passenger and freight.
• Low-base, future sustainable, and climate-resilient urban development will be driven by smart city initiatives, integrated planning of cities for mainstreaming adaptation and enhancing energy and resource efficiency, effective green building codes and rapid developments in innovative solid and liquid waste management.
• The industrial sector will continue in the perspective of ‘Aatmanirbhar Bharat’ and ‘Make in India’.
• India will also focus on improving energy efficiency by the Perform, Achieve and Trade (PAT) scheme, the National Hydrogen Mission, increasing electrification, enhancing material efficiency, and recycling and ways to reduce emissions.

What is Net Zero Target?

• It is referred to as carbon neutrality, which does not mean that a country would bring down its emissions to zero.
• Rather, it is a state in which a country’s emissions are compensated by the absorption and removal of greenhouse gases from the atmosphere.
• Further, absorption of the emissions can be increased by creating more carbon sinks such as forests.
• While the removal of gases from the atmosphere requires futuristic technologies such as carbon capture and storage.
• More than 70 countries have promised to become Net Zero by the middle of the century i.e., by 2050.
• India has promised to cut its emissions to net zero by 2070 at the conference of parties-26(COP) summit.

Source: The Hindu