Economic Development: November 2024 Current Affairs | Current Affairs & General Knowledge - CLAT PDF Download

Sustainability Concerns in India’s Agricultural Export Growth

Why in News?

India has experienced a significant rise in agricultural exports, particularly in tea and sugar, contributing to its economic growth. However, this rapid increase brings forth serious sustainability issues related to environmental impact, resource management, and labor conditions.

Key Takeaways

• Economic sustainability involves maintaining long-term productivity without resource depletion.
• Ecological sustainability focuses on protecting ecosystems and minimizing chemical use.
• Social sustainability addresses labor rights and working conditions for agricultural workers.

Additional Details

• Economic Sustainability: Beyond profitability, it emphasizes maintaining productivity over the long term.
• Ecological Sustainability: Essential practices include effective water management and reducing chemical inputs to protect the environment.
• Social Sustainability: Involves addressing labor rights, ensuring fair wages, and ensuring safe working conditions.
• The Lifecycle Approach: Sustainability should be considered throughout all stages of agricultural production, from pre-sowing to post-harvest.

Sustainability Concerns in Tea Production

• Human-Wildlife Conflicts: 70% of tea plantations are located near forests, leading to conflicts with wildlife, particularly elephants, which can damage crops.
• Chemical Use: The use of harmful pesticides such as DDT and Endosulfan poses health risks and increases residues in tea products.
• Labour Issues: Women make up more than half of the workforce in tea plantations and face low wages and unsafe working conditions.

Sustainability Concerns in Sugar Industry

• Water Management: Sugarcane production demands significant water resources, straining India's water supply.
• Impact on Biodiversity: The expansion of sugarcane cultivation has led to habitat loss and decreased biodiversity.
• Labour and Working Conditions: Workers often endure long hours in poor conditions and suffer from health impacts due to rising temperatures.

Sustainability Concerns in Agricultural Exports

• Supply Chain and Logistics: Inefficient storage and inadequate cold chain infrastructure lead to substantial post-harvest losses, increasing costs and waste.
• Climate Change: Extreme weather events disrupt production, exacerbating concerns around soil degradation and water scarcity.

What Needs to Be Done to Address Sustainability Challenges?

• Sustainability in Tea Industry: Implement climate-resilient tea varieties and agroforestry practices, ensuring fair profits for farmers.
• Sustainability in Sugar Industry: Transition to drip irrigation to save water and utilize by-products for energy and fertilizer.
• Sustainability in Agricultural Exports: Promote sustainable crop selection, such as millets, and enhance supply chain efficiency while balancing domestic needs.
• To achieve sustainable economic growth in agriculture, India must integrate sustainability goals across all levels of production and export while ensuring that natural resources are conserved for future generations.

National Technical Textiles Mission (NTTM)

Why in News?

Recently, the Ministry of Textiles has sanctioned 12 new research projects under the National Technical Textiles Mission (NTTM), bringing the total number of approved projects to 168. These projects span various crucial areas, including geotextiles and sustainable, smart textiles.

Key Takeaways

• The NTTM is a government initiative aimed at enhancing the technical textiles sector in India.
• The mission's goal is to establish India as a global leader in technical textiles by the year 2024.
• The implementation period for NTTM is set for four years, from FY 2020-21 to 2023-24.
• Research projects are executed in collaboration with institutions like the Council of Scientific and Industrial Research (CSIR) and IITs.

Additional Details

• Components of NTTM:The mission comprises several key components aimed at fostering growth:
  • Research, Innovation, and Development: Conducting fundamental research to advance technical textiles.
  • Promotion and Market Development: Focused on expanding market opportunities, fostering international collaborations, and supporting investment initiatives like 'Make in India.'
  • Export Promotion: An Export Promotion Council for Technical Textiles has been established to improve coordination and promotional activities in this sector.
  • Education, Training, and Skill Development: Encouraging higher-level education and skill enhancement in areas related to technical textiles.
• Related Initiatives: Key initiatives include the Production Linked Incentive (PLI) Scheme for the Textiles Sector, Technotex India, and the amended Technology Upgradation Fund Scheme.
• This mission plays a vital role in positioning India as a major player in the technical textiles industry, promoting innovation, sustainability, and market development.

Agricultural Policy Monitoring and Evaluation 2024

Why in News?

Recently, the Organisation for Economic Co-operation and Development (OECD) highlighted in its Agricultural Policy Monitoring and Evaluation 2024 report that India implicitly taxed its farmers an estimated USD 120 billion in 2023, the highest among 54 countries. This situation arises from government policies such as export bans and duties, which aim to keep food prices low for consumers but impose significant costs on the agricultural sector.

Key Takeaways

• Total agricultural support across 54 countries averaged USD 842 billion per year from 2021 to 2023.
• India experienced a negative Market Price Support (MPS) in 2023, amounting to a loss of USD 110 billion.
• India accounted for 62.5% of all global negative price support in 2023.
• Despite USD 10 billion in subsidies, negative policies overwhelmed positive support measures.

Additional Details

• Market Price Support (MPS): A policy aimed at keeping the prices of specific agricultural products at a minimum level, which helps farmers achieve higher prices than those on the global market. However, MPS in India was negative in 2023.
• Global Agricultural Challenges: Conflicts like Russia's war against Ukraine and extreme weather events have disrupted agricultural markets, affecting trade and productivity.
• Negative Market Price Support: India’s policies have led to a negative MPS, significantly impacting farmers' incomes.
• Export Restrictions: Restrictions on essential commodities like rice and sugar limit market access and drive down domestic prices.
• Low Minimum Support Prices (MSP): MSP is sometimes set lower than international prices, leading to reduced farmer income.
• The report emphasizes the need for governments to establish measurable goals for sustainable productivity and to invest in monitoring systems like total factor productivity (TFP) and agri-environmental indicators (AEIs). 
• TFP measures the efficiency of agricultural inputs in producing outputs, while AEIs assess environmental impacts and risks from agriculture. The OECD report calls for innovation to enhance productivity and suggests a larger share of producer support be tied to sustainable farming practices.

How do Indian Agricultural Policies Negatively Impact Farmers?

• Negative Market Price Support: India’s agricultural policies have resulted in significant losses for farmers, with a PSE of around -6.2% from 2014 to 2016 due to negative market price support.
• Export Restrictions and Bans: Policies restricting exports on essential commodities limit market access and lower domestic prices.
• Regulatory Constraints: Acts such as the Essential Commodities Act and the Agricultural Produce Market Committee Act impose stringent regulations that can depress farm gate prices.
• Inefficiencies in Marketing: Lack of modern infrastructure and high transaction costs further reduce the prices farmers receive.
• Inefficient Resource Allocation: Short-term subsidies for inputs like fertilizers and electricity fail to address long-term agricultural challenges.

Way Forward

• Reform Export Policies: Gradually ease export restrictions, invest in infrastructure, and align MSPs with international market prices.
• Shift in Budgetary Priorities: Redirect resources toward enhancing resilience and sustainability within the agricultural sector.
• Better Market Functioning: Improve coordination between state and central policies to address agricultural sector challenges.
• Promote Digital Platforms: Encourage the use of digital marketing and platforms like the National Agriculture Market (e-NAM) to connect farmers directly with consumers.

Mains Question:

Q: Discuss the impact of India’s agricultural policies on its farmers. How do policies such as export bans and Minimum Support Prices affect the agricultural sector?

Nano Coated Fertilisers

Why in News?

Recently, Indian scientists have developed nano coated muriate of potash, known as nano fertilisers, which significantly enhance the nutrient use efficiency (NUE) of fertilisers. The coating is made from nanoclay-reinforced binary carbohydrates, which can reduce the recommended dosage while maintaining high crop production. These coatings are mechanically stable, biodegradable, and hydrophobic, allowing them to release nutrients slowly in the soil. NUE refers to how effectively a plant utilizes applied or fixed nitrogen for biomass production.

Key Takeaways

• The development of nano coated fertilisers aims to improve the efficiency of nutrient uptake by plants.
• These fertilisers can reduce the amount of fertiliser needed while improving crop yields.

Additional Details

• About Nanofertilisers: Fertilisers that are coated with nanomaterials, which are particles in the nanoscale range of 1-100 nanometers, enable a controlled release of nutrients into the soil, optimising their availability to plants over a longer period.
• Nanomaterial Components:
  • Inorganic Materials: Common inorganic nanomaterials include metal oxides such as zinc oxide (ZnO), titanium dioxide (TiO₂), magnesium oxide (MgO), and silver oxide (AgO).
  • Silica Nanoparticles: These enhance crop quality, providing high surface area, biocompatibility, and non-toxicity, particularly beneficial under stress conditions like salinity.
  • Hydroxyapatite Nanohybrids: Useful in delivering calcium and phosphorus to plants.
  • Organic Materials: Include chitosan, a natural polymer aiding in nutrient delivery, and carbon-based nanomaterials like carbon nanotubes (CNTs) which enhance germination and chlorophyll content.
• Types of Nanofertilisers:
  • Nanoscale Coating Fertilisers: Nutrients are coated in nanoparticles for slow, controlled release.
  • Nanoscale Additive Fertilisers: Nutrients are added to nano-sized adsorbents for gradual availability to plants.
  • Nanoporous Materials: Release nutrients slowly, promoting full absorption by plants.
• Nanofertilisers have multiple applications in agriculture, particularly in precision agriculture, which optimizes water and fertiliser usage, reducing waste and energy consumption. They also improve soil and plant health by enhancing seed germination, nitrogen metabolism, photosynthesis, and stress tolerance, thereby leading to healthier crops.

Advantages of Nanofertilisers

• Enhanced Nutrient Efficiency: Reduces nutrient loss from leaching and runoff, ensuring efficient nutrient delivery to plants.
• Improved Crop Productivity: The controlled release of nutrients supports better growth and development, leading to increased crop yield over time.
• High Surface Area and Penetration Ability: Facilitates better nutrient uptake and deeper soil penetration.
• Biofortification: Enhances nutritional content of crops by supplying essential micronutrients like iron and zinc.
• Environmental Benefits: Reduces risks associated with traditional fertilisers, promoting eco-friendly practices.
• Cost Efficiency: Reduces the frequency of applications, leading to long-term cost savings for farmers.
• Compatibility with Biofertilisers: Supports beneficial microorganisms in soil, enhancing nitrogen fixation and overall plant growth.

Challenges in the Use of Nanofertilisers

• Environmental Impact: Potential risks of ecotoxicity to soil and water ecosystems.
• Toxicity to Humans: Smaller nanoparticles can penetrate biological systems, raising health concerns.
• Impact on Soil Microorganisms: Metal nanoparticles may disrupt essential soil microbes.
• Lack of Legislation and Regulation: Insufficient regulations for safe use and effectiveness of nanofertilisers.
• Bioaccumulation: Long-term persistence of nanoparticles may lead to build-up in the food chain.
• Decline in Yield: Some studies indicate a decrease in yields with the use of certain nano ureas.

Way Forward

• Supporting Small-Scale Farmers: Processing abundant phosphate rock resources can make nano fertilisers more accessible.
• Enhancing Farmers' Reach: Improving access to nano fertilisers and education through initiatives like Krishi Vigyan Kendras (KVKs).
• Standardisation and Regulation: Establishing clear regulations for production and application is crucial for widespread adoption.
• Investing in Fundamental Research: Continued research on nanoparticle interactions with plants is needed to address safety and efficacy.
• Optimising Nanomaterials: Developing biodegradable nanomaterials can help mitigate environmental risks.

Branded Millets for Health Benefits

Why in News?

A recent study titled ‘Impact of debranning (the process of removing the outer bran layers from a cereal grain) on the nutritional, cooking, and microstructural characteristics of five Indian small millets’ has been published, highlighting important findings regarding millets.

Key Takeaways

• De-branning reduces protein, dietary fibre, fat, minerals, and phytate content while increasing carbohydrates and amylose.
• This process diminishes the health benefits of millets and raises their glycemic load.
• De-branning and polishing extend shelf life and reduce cooking time by making millets softer.
• Whole-grain millets can be preserved using vacuum-sealing without removing the bran.

Additional Details

• Health Benefits of Millets: Millets are rich in minerals such as iron, zinc, and calcium, and contain bioactive flavonoids that support health.
• They help in preventing diabetes, managing hyperlipidemia, reducing weight, and lowering blood pressure, which is beneficial for cardiovascular health.
• Millets are gluten-free and have a low glycemic index, making them suitable for individuals with celiac disease or diabetes.

About Millets

• Definition: Millets refer to a group of small-seeded grasses cultivated primarily in marginal lands, particularly in dry areas across temperate, subtropical, and tropical regions.
• Common varieties in India include Ragi (Finger millet), Jowar (Sorghum), Sama (Little millet), Bajra (Pearl millet), and Variga (Proso millet).

Global and Indian Production

• India is the largest producer and exporter of millets, followed by Niger and China.
• Global millet production was around 28 million metric tons in 2020, with major consumption in Africa and Asia.
• 2023 has been recognized as the International Year of Millets by the Food and Agriculture Organization (FAO).
• The Indian government promotes millet production under the National Food Security Mission.

Ecological and Economic Advantages

• Millets are drought-tolerant and thrive in arid and semi-arid regions, requiring minimal water, fertilizers, and pesticides.
• They can be used for both food and fodder, enhancing farming efficiency.

First Advance Estimates for Kharif Crop Production

Why in News?

The Ministry of Agriculture and Farmers’ Welfare has recently reported the Kharif crop production for the year 2024-25, indicating a record-breaking yield in foodgrains and oilseeds. This announcement highlights the government's increasing reliance on technology and stakeholder feedback in agricultural planning, along with a significant improvement in the production of staple crops like rice and maize.

Key Takeaways

• Digital Crop Survey (DCS): For the first time, the DCS was employed under the Digital Agriculture Mission (DAM) to assess crop areas, replacing the traditional Girdawari method in four states: Uttar Pradesh, Madhya Pradesh, Gujarat, and Odisha.
• Record Foodgrain Production: The total Kharif food grain production for 2024-25 is estimated at 1647.05 Lakh Metric Tonnes (LMT), marking an increase of 89.37 LMT compared to 2023-24, and 124.59 LMT above the average Kharif foodgrain production, largely due to favorable yields in rice, jowar, and maize.

Crop-Wise Estimates

Implications

• Food Security: The substantial production of key crops enhances India’s food security by ensuring a consistent supply for domestic needs and potential exports.
• Economic Impact: Increased yields can positively influence the economy by raising rural incomes, stabilizing prices, and enhancing agricultural GDP contributions.
• Policy Planning: These data-driven estimates help policymakers design effective support programs and optimize supply chain strategies.

What is the Digital Agriculture Mission?

• About: The DAM aims to revolutionize the agricultural sector through digital innovations and technology-based solutions. It has a budget allocation of Rs. 2,817 crore and is focused on modernizing agriculture by integrating data, digital tools, and technology to enhance farming efficiency, transparency, and accessibility.
• Components:
  • AgriStack: A comprehensive Digital Public Infrastructure (DPI) for farmers, including a Farmers' Registry (similar to Aadhaar), Geo-referenced Village Maps, and a Crop Sown Registry.
  • Pilot projects have been initiated in six states to establish Farmer IDs and implement the DCS.
• Key Targets:
  • Create digital identities for 11 crore farmers over three years.
  • Launch the DCS nationwide within two years, covering 400 districts in FY 2024-25 and all districts by FY 2025-26.

Benefits

• Enhanced Transparency: Improved data accuracy leads to efficient processing for crop insurance, loans, and government schemes.
• Disaster Response: Enhanced crop mapping aids quicker responses during natural disasters, facilitating disaster relief and insurance claims.
• Targeted Support: With a robust digital infrastructure, farmers can receive tailored real-time advisories on pest management and irrigation.
• Employment Opportunities: The mission is expected to generate direct and indirect jobs in agriculture, supporting around 2,50,000 trained local youth.

Mains Question

Q: Analyse the economic implications of food grain production in India, particularly in terms of food security and rural income.

India Joins ARIN-AP Steering Committee

Why in News?

Recently, India, represented by the Directorate of Enforcement (ED), has been included in the Steering Committee of the Asset Recovery Interagency Network-Asia Pacific (ARIN-AP). India is set to assume the presidency of ARIN-AP in 2026 and will host the network's Annual General Meeting (AGM). This development aligns with India’s priorities under the G-20 framework, especially regarding the Nine Point Agenda focused on combating fugitive economic offenders and enhancing asset recovery efforts.

Key Takeaways

• India joined the ARIN-AP Steering Committee, enhancing its role in regional asset recovery efforts.
• India will take on the presidency of ARIN-AP in 2026 and host the AGM.
• This move supports India's G-20 priorities regarding economic crime and asset recovery.

Additional Details

• ARIN-AP: The Asset Recovery Interagency Network-Asia Pacific is a multi-agency network that facilitates the exchange of information on individuals, companies, and assets within the Asia-Pacific region to assist in recovering proceeds from unlawful activities.
• Objectives: ARIN-AP aims to focus on the proceeds of all crimes while fostering a strong international network with organizations like the United Nations Office on Drugs and Crime (UNODC) and CARIN.
• Membership: The network comprises 28 member jurisdictions and nine observers to enhance cross-border cooperation in asset tracing, freezing, and confiscation.
• Secretariat: The Korean Supreme Prosecutors' Office (SPO) manages the Secretariat, which coordinates the network's activities.

Related to CARIN

• CARIN: The Camden Asset Recovery Inter-agency Network is an informal network composed of law enforcement and judicial experts from its member states, supporting the full asset recovery process from tracing to confiscation.
• Finance: CARIN is funded by the European Union and operates with 61 registered member jurisdictions, including 27 EU Member States and 13 international organizations.
• Structure: The organization is governed by a Steering Group comprising nine members, with an annual rotating presidency.
• This inclusion in ARIN-AP is a significant step for India in enhancing its capabilities in asset recovery and international cooperation against economic crimes.

50th Foundation Day of Coal India Limited

Why in News?

Recently, Coal India Limited (CIL) celebrated its Foundation Day, marking its establishment as the apex holding company for nationalised coking coal mines in 1971 and non-coking mines in 1973. CIL operates under the Ministry of Coal and is headquartered in Kolkata.

Key Takeaways

• CIL is a state-owned corporation responsible for coal production and management in India.
• Founded in 1975, CIL is the world's largest coal producer.
• It is classified as a 'Maharatna' public sector enterprise with 8 subsidiaries.
• Over 50% of India's power capacity is coal-based, with CIL supplying approximately 78% of total coal production.

Additional Details

• Organisational Structure: CIL operates through 8 subsidiaries, with Mahanadi Coalfields Limited (MCL) being the largest.
• Mining Capacity: CIL manages 313 active mines across 84 mining areas in eight Indian states.
• Recent Developments: CIL has introduced a Strategy Report on Coal and Lignite Exploration and launched a Mine Closure Portal. A 50 MW solar power plant is being developed at the Nigahi project in Singrauli, Madhya Pradesh.
• CIL plays a crucial role in India's coal sector, which has historical roots dating back to 1774. The coal industry has evolved significantly since its inception, especially following nationalisation and the establishment of the National Coal Development Corporation in 1956.

Coal Sector Background

• Pre-Independence: Coal mining in India started in 1774 with M/s Sumner and Heatly in the Raniganj Coalfield.
• Post-Independence: The NCDC was formed in 1956 to systematically develop the coal industry.
• Nationalisation: Coking coal mines were nationalised in 1971-72, followed by non-coking coal mines.

Current Production

• India's coal production for 2023-24 is projected at 997.83 million tonnes, with CIL contributing 773.81 million tonnes and a growth rate of 10.04%.
• Coal imports in 2022-23 were 237.668 million tonnes, primarily sourced from Indonesia, Australia, and Russia.

Economic Significance of the Coal Sector

• Energy Backbone: Coal is the primary energy source for thermal power plants, fulfilling over half of India's energy needs.
• Railway Freight: Coal contributes nearly 49% to India's railway freight revenue.
• Revenue Generation: The coal sector generates over Rs. 70,000 crore annually for central and state governments through taxes and royalties.
• Employment Opportunities: Provides jobs to over 2 lakh individuals in CIL and its subsidiaries.
• Corporate Social Responsibility: Investments in community welfare initiatives in coal-producing regions.

Challenges in India's Coal Sector

• Environmental Challenges: Air pollution, poor water quality, and land degradation are significant issues.
• High Cost of Production: The average cost of coal production is around Rs 1,500 per ton.
• Coal Quality: Much of the domestic coal is of inferior quality, impacting efficiency.
• Investment in Renewables: The push for renewable energy competes with the dominance of the coal sector.
• Monopolistic Market Structure: CIL's dominance raises concerns about monopolistic practices.

Addressing Challenges in India's Coal Sector

• Mitigating Environmental Challenges: Implement scrubbers and water recycling to reduce emissions and improve water quality.
• Promoting Competition: Encourage private sector participation in coal mining and distribution.
• Investment Diversification: Create a roadmap for transitioning to renewable energy sources.
• Cost Management Initiatives: Reduce production costs through technological advancements and better resource management.

RBI’s Repatriation of Gold from UK to India

Why in News?

Recently, the Reserve Bank of India (RBI) has made a significant strategic decision by repatriating over 100 tonnes of gold from the UK to its domestic vaults. This event marks the largest such repatriation since the early 1990s and highlights the RBI's evolving strategy in managing its gold reserves.

Key Takeaways

• The RBI currently holds 822.10 tonnes of gold, with a portion stored domestically and the remainder in foreign custody.
• This move is viewed as a response to inflation, geopolitical uncertainties, and the need for better asset management.
• Gold serves as a hedge against inflation and is crucial for diversifying the RBI's foreign exchange holdings.

Additional Details

• Gold Stock: Under the Reserve Bank of India Act of 1934, the RBI's gold reserves are classified into domestic and foreign holdings. As of March 2024, 408.31 tonnes are stored in India, while 413.79 tonnes are with foreign institutions like the Bank of England.
• Historical Purchases: The RBI has been proactive in gold purchases, acquiring 200 tonnes during the 2009 financial crisis and additional quantities in recent fiscal years, including 65.11 tonnes in FY 2022 and 34.22 tonnes in FY 2023.
• Reasons for Repatriation: Factors influencing the RBI's decision include the protection against inflation, a hedge against geopolitical risks, and eliminating storage costs associated with foreign institutions.
• Significance of Gold: Gold is intrinsically valuable due to its limited supply and historical performance as a stable asset during inflationary periods. It also plays a key role in jewelry demand, especially in cultures that value gold.

The RBI's decision to bring back over 100 tonnes of gold from the UK signifies a strategic shift towards greater control and management of its assets. This move not only enhances the security of India's foreign exchange reserves but also reflects the central bank's confidence in the stability of the Indian economy amidst global uncertainties.

RBI’s Framework for Reclassification of FPI to FDI

Why in News?

The Reserve Bank of India (RBI) has introduced an operational framework to manage the reclassification of foreign portfolio investment (FPI) into foreign direct investment (FDI) when the prescribed limits are exceeded.

Background

• Current regulations limit FPIs to a maximum of 10% of an Indian company’s total paid-up equity capital.
• If this threshold is breached, FPIs previously had two options:
  • Divest the excess holdings.
  • Reclassify the excess as FDI.

Foreign Portfolio Investment (FPI)

• FPI refers to securities and financial assets held by investors in a foreign country.
• Unlike FDI, FPI does not grant direct ownership of a company’s assets and is relatively liquid, depending on market volatility.
• FPI holdings include:
  • Stocks, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs).
  • Bonds, mutual funds, and Exchange-traded funds (ETFs).
• Difference from FDI:
  • FDI entails a direct ownership stake in a foreign company or project by a foreign investor, company, or government.

New Framework

Mandatory Government Approval

• FPIs exceeding the 10% threshold must secure necessary approvals from the government, signaling a shift to FDI.

Timely Reclassification

• The reclassification process must be completed within five trading days from the date of exceeding the limit.

Compliance Requirements

• Investments must follow FDI-specific rules, including:
  • Entry routes, sectoral caps, and investment limits.
  • Pricing guidelines and conditions under the current FDI framework.
• Reporting requirements align with the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019.

Revised SEBI Guidelines

• FPIs opting for reclassification must inform their custodian.
• The custodian will freeze further equity transactions in the affected company until the conversion is completed.

Significance of the New Framework

• Regulatory Compliance: A systematic approach ensures compliance and reduces breaches.
• Investment Oversight: Enhances monitoring of foreign equity investments, balancing capital inflows with national economic interests.

State of Food and Agriculture 2024

Upgrading Wind Energy Generation

The Tamil Nadu government unveiled the Tamil Nadu Repowering, Refurbishment, and Life Extension Policy for Wind Power Projects – 2024, aimed at increasing wind energy output by upgrading small wind turbines. However, stakeholders have raised concerns over its effectiveness and implementation.

Wind Energy Potential in India

• India boasts a wind power potential of 1,163.86 GW at 150 metres above ground level, ranking fourth globally in installed wind energy capacity.
• Currently, only 6.5% of this potential is utilized.
• Key states driving wind energy installations include Gujarat, Tamil Nadu, Karnataka, Maharashtra, Rajasthan, and Andhra Pradesh, which collectively account for 93.37% of the nation’s wind capacity.

India's Renewable Energy Landscape

As of 2024, India’s renewable energy capacity is 201.45 GW, representing 46.3%of the total installed energy capacity. Key contributions include:

• Solar power: 90.76 GW
• Wind power: 47.36 GW
• Hydropower: 46.92 GW
• Small hydro: 5.07 GW
• Biopower: 11.32 GW

India’s Renewable Energy Targets

India’s ambitious renewable energy and climate goals include:

• Increasing renewables capacity to 500 GW by 2030, with 140 GW from wind power.
• Meeting 50% of energy requirements from renewable sources.
• Reducing cumulative emissions by one billion tonnes by 2030.
• Cutting emission intensity of GDP by 45% from 2005 levels by 2030.
• Achieving Net Zero Emissions by 2070.

Challenges in Wind Energy Development

• Dependence on Natural Factors: Wind energy relies on variable natural conditions like wind speed and availability.
• Regional Concentration: Wind resource potential is restricted to a few states, leading to land scarcity for expansion.
• Environmental Concerns: Wind turbines impact wildlife, particularly birds and bats.
• High Costs: Despite decreasing, costs for turbines, installation, and grid connectivity remain a challenge.
• Turbine Lifecycle Issues: Wind turbines last 20–25 years; decommissioning and recycling blades is environmentally challenging.
• Offshore Wind Challenges: Offshore projects, requiring specialized equipment and floating turbines, face high costs and logistical difficulties.

Government Initiatives

• National Offshore Wind Energy Policy (2015): Aims to harness offshore wind energy along India’s coastlines, including Tamil Nadu and Gujarat.
• National Wind Energy Mission: Targets 140 GW of wind energy capacity by 2030.
• National Wind-Solar Hybrid Policy (2018): Promotes wind-solar hybrid systems for efficient resource utilization.
• Wind Resource Assessment: Conducted by the National Institute of Wind Energy (NIWE) to identify viable sites for wind energy generation.
• Wind Farm Development: Financial incentives and subsidies support wind energy project setups.
• Wind Energy Auctions: Competitive bidding ensures cost efficiency in project implementation.
• Renewable Purchase Obligation (RPO): Mandates power distributors to procure a specific percentage of energy from renewable sources, boosting demand.

Paradox of Stagnant Rural Wages

Despite India’s remarkable GDP growth in recent years, rural wages have remained largely stagnant, creating a paradox that raises concerns about inclusive economic development and the well-being of the rural population.

Rural Wages in India

Rural wages serve as a crucial indicator of the economic health and well-being of India’s rural workforce. According to the Labour Bureau, the average daily wage rates for both agricultural and non-agricultural jobs have shown varied trends over the years. For example, the Wage Rate Index reflects fluctuations in wage growth across different sectors.

Implications of Stagnant Rural Wages

Economic Implications

• Reduced Consumer Spending
• Increased Poverty and Inequality
• Migration to Urban Areas

Social Implications

• Impact on Education and Health
• Gender Inequality
• Social Unrest, including higher crime rates, political instability, and social tensions

Economic Growth vs. Wage Stagnation

India’s GDP has grown robustly, averaging 7.8% in recent years. However, this growth has not translated into substantial wage increases for rural workers. In fact, real wages, adjusted for inflation, have either stagnated or declined, exposing a critical issue regarding the nature of economic growth itself.

Factors Driving Wage Stagnation

• Labour-Intensive vs. Capital-Intensive Growth: Much of India’s recent growth has been driven by capital-intensive sectors, which do not generate many jobs compared to labour-intensive sectors, limiting demand for rural labour and keeping wages low.
• Inflation: Although nominal wages have seen some increases, inflation has outpaced these, eroding the real purchasing power of rural workers. For instance, while nominal rural wage growth was 5.2%, real wage growth was -0.4%.
• Labour Force Participation: The increased participation of rural women in the workforce, aided by government schemes like Ujjwala and Har Ghar Jal, has expanded the labour supply, putting downward pressure on wages due to higher competition for the same jobs.
• Agricultural Dependence: A large portion of rural employment remains in agriculture, a sector that has not experienced wage growth proportional to overall economic progress. Despite agricultural growth rates of 4.2% and 3.6% in recent years, wages have remained stagnant.

Measures to Enhance Rural Wage Growth

• Diversification of Rural Employment: Promoting non-agricultural employment in rural areas can reduce dependency on agriculture and create new income sources. This can be supported through skill development programs and incentives for rural industries.
• Inflation Control: Implementing policies to control inflation can ensure that nominal wage increases result in actual real wage gains, including monetary measures to stabilize prices and reduce inflationary pressures.
• Income Support Programs: Expanding programs like direct cash transfers can provide immediate relief to rural workers and help mitigate wage stagnation’s impact. For example, Maharashtra’s Ladki Bahin Yojana offers supplementary cash transfers to partially offset stagnant wages.
• Labour Market Reforms: Introducing labour market reforms to improve job security and working conditions can make rural employment more attractive and sustainable. This includes enforcing minimum wage laws and providing social security benefits to rural workers.

Policy Implications

• Need for Targeted Interventions: Policymakers must design targeted interventions that focus on rural industrialization, boosting agricultural productivity, and implementing social protection schemes to address wage stagnation.
• Focus on Inclusive Growth: Economic growth should benefit all segments of society, with policies aimed at creating more equitable opportunities for rural workers, such as better access to education, healthcare, and financial services.
• Strengthening Labour Rights: Strengthening labour rights and protections for rural workers can improve their bargaining power and ensure fair wages, including enforcing minimum wage laws and providing social security benefits.
• Role of Technologies: Technologies can enhance agricultural productivity (e.g., precision farming), create new job opportunities through digital skills training, improve market access via platforms like Amazon Saheli and Flipkart Samarth, and increase supply chain transparency through technologies like blockchain.

Conclusion

To address the paradox of stagnant rural wages, a comprehensive approach is required. This includes diversifying rural employment, controlling inflation, expanding income support, and implementing labour market reforms. Aligning rural wages with overall economic progress will ensure inclusive and balanced development, benefiting the rural population and contributing to the country’s broader economic goals.