Current Affairs – 09/12/24, consists of the news and views from Mint(Hindustan Times) and Indian Express.
Current Affairs – 09/12/24 I Source: Mint
PM Internship scheme: will it be a game changer?
The Prime Minister Internship Scheme is expected to be launched soon. The scheme, which will attempt to plug the gap between skills in demand and readiness of the workforce, could turn out to be a game changer in the jobs arena. But there are challenges.
What is the internship scheme about?
The PM Internship Scheme, announced in the FY25 budget, will offer 12-month internships in top companies to 10 million youth over five years, for a stipend. Some 125,000 offerings are on the table already from about 280 companies, as per data available on a portal dedicated to the scheme run by the ministry of corporate affairs.
There are over 35,000 offers for graduates, followed by 31,500 for candidates who have passed class 10, and over 30,000 for those with Industrial Training Institute certificates. Diploma holders have over 22,000 offers while candidates who have cleared class 12 have 8,800 offers.
How will it benefit India Inc?
Firms point to unemployability even when there are openings. Additional investments are needed for skilling from their end when freshers join. The manufacturing and IT sectors, which hire in large numbers from campuses, are specially impacted as the training offered to the students is not at par with technologies used at work.
An industry-ready workforce will also lessen the dependence on coaching centres in cities that offer skill-set certifications. Often, these programmes are taught by private sector employees moonlighting as teachers—their quality or the quality of the courses they teach could be dubious.
What are the challenges ahead?
For a programme of this scale, the government and companies must be committed for the long term. It cannot be a quick fix. Firms need to train the young workforce and follow up with a job offer so that they do not slip into unemployment again.
For companies, this means training both the interns and those recruited for permanent placement.
Is the stipend attractive enough?
While the scheme can help the youth get industry-ready and get a job, the stipend may not be enough. Interns will get a monthly assistance of ₹4,500 from the government and ₹500 from the company, in addition to a one-time grant of ₹6,000 from the government to support them. Average daily wages, though not uniform, are often higher than this stipend amount. The scheme will need to advertise why getting trained in a relevant skill-set and updating oneself is important for a more secure livelihood.
Shouldn’t schools and colleges have a role?
When firms hold introductory meetings with students, typically they are in their final years of graduation and post-graduation. Schools must invite firms to talk about the future of workforce and the skill-sets of tomorrow at an earlier stage. The curriculum needs to be updated and students taught to focus on their strengths.
This is key in tier II and III cities where many students head for coaching centres to pursue engineering and medical degrees. In many cases, they aren’t aware of other degrees or jobs in demand.
UPSC Mains PYQ
Qn. While we flaunt India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.
₹100 tn infra plan to roll out over 5 years
A grand plan to build India’s infrastructure to a higher level is in the works, leveraging the vast amounts of money being pumped in by both the central and state governments, as well as the private sector,
The capital expenditure (capex) for infrastructure is likely to touch ₹100 trillion in five years, which would be used to transform India’s ports, airports, roads and other utilities.
The blueprint would include a ₹20-trillion master plan to develop 50,000 km of expressways, ₹2 trillion towards development of port infrastructure, and a ₹10-12 trillion plan to upgrade the railway network, among others.
The objective is to expand existing infrastructure as well as build new capacities, and create showcase projects that measure up with the best in the world. Such projects would be aimed at further economically integrating rural and urban areas, reducing travel time and logistics costs, stimulating growth, and enhancing the standards of living over the next five years.
To be sure, infrastructure investments have been loaded in the recent past as well. For FY25, the Centre allocated ₹11.11 trillion for its own infrastructure capex and ₹3.9 trillion as grants to states for asset creation, according to data from the finance ministry.
Private sector capex is much more. In the nine years to FY23, private sector investments have remained around 36-40% of the gross fixed capital formation (GFCF) in the economy, while that of central and state governments together accounted for 12-14%, per finance ministry data.
Road development will move away from plain vanilla highways to access-controlled expressways designed for high-speed traffic with controlled access and egress points. A ₹20-trillion master plan to develop 50,000 km of these modern roads would be unveiled, with work on at least 25,000 km targeted for completion in the next five years.the aim is to provide an expressway network at 100 km from any point in the country.
Also, projects would be relaunched under the built-operate-transfer (BoT) model to attract private investment in roads.
The NHAI (National Highways Authority of India) has prepared a pipeline of 53 projects spanning 5,214 km, which require investments of ₹2.1 trillion, to be developed on BoT.
The aim is to have at least a third of highways to be built by the private sector under this model.for shipping, the blueprint will emphasize the creation of world-class port infrastructure both in terms of size and facilities.
In addition, a mega shipbuilding policy would be unveiled together with a Rs 25,000 crore maritime development fund.
For the railways, the country’s largest transporter, the transformation would be towards improving speed, comfort and safety for both for passengers and goods. A plan to scale up the Vande Bharat scheme in all its formats is being put in place.
India flags trade line, China worry in FTA talks with Oman
India has raised concerns that China could use Oman to dump goods into the Indian market, even as talks on a free trade agreement (FTA) with the West Asian nation have resulted in an agreement on over 200 trade lines.
However, Oman wants to expand the agreement to about 500 trade lines. India, it is understood, is not in favour of the move.
Talks on the long-pending trade agreement, officially known as the Comprehensive Economic Partnership Agreement (Cepa), were completed in March. The agreement has hit a deadlock as Oman has requested revisions to India’s market access offer for specific products.
“The West Asian country remains firm on its demand for market access to a range of additional products, which cannot be included in the list under the agreed terms of reference,”.
The proposed pact aims to eliminate duties on key products, including petroleum, textiles, electronics, pharmaceuticals, machinery, and iron and steel, thereby fostering trade ties and economic cooperation.
While Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries, more than 80% of Indian exports to Oman attract an average 5% import duty.
Oman’s import duties range from 0% to 100%, along with other specific duties.
A 100% duty applies to certain meats, wines, and tobacco products.
The FTA is also expected to help Oman diversify its economy away from oil exports by granting preferential access to Indian goods and services.
“India sees an immediate benefit from finalizing the FTA with Oman in the establishment of manufacturing units dedicated to exporting green products,” .
“This move is aimed at addressing the challenges posed by the EU’s Carbon Border Adjustment Mechanism (CBAM),” the looming EU tax on embedded carbon emissions in products such as steel and aluminium. The so-called carbon tax is expected to impact Indian exports to Europe.
As things stand, Oman seeks to include a range of new products in the FTA discussions, focusing on sectors such as agricultural goods, processed foods, chemicals, plastics, and certain services.
Products that attract high tariffs include premium dates for luxury markets, exotic spices, and gourmet confectioneries.
Indian officials say China may be tempted to dump its goods—that is, sell them at below cost price—on India in response to the EU, which is China’s second-largest trading partner, imposing steep tariffs on Chinese products. The US, too, is planning similar moves under the new administration led by President Donald Trump.
The EU move aims to address concerns over Chinese state subsidies, which allegedly provide manufacturers with an unfair advantage and the fact that Chinese producers hold more than 55% market share in certain categories, much higher than their European counterparts.
“The high tariff barriers imposed by Europe and the US on Chinese products have raised concerns about the Asian giant seeking alternative routes to access global markets,”.
“Among these possibilities, there is growing apprehension that China might use intermediary nations to bypass trade restrictions and dump its products into other economies,” .
Fears of trade turmoil to spur final rate moves
Central banks on four continents will make a final flurry of changes to borrowing costs in the coming week, before Donald Trump’s return to the White House raises the prospect of global trade turmoil.
By the time policymakers from Australia, Canada, Brazil and the euro zone convene for their first scheduled meetings of 2025, the US president-elect will have taken office, and a potential wave of tariffs could be closer to reality.
The impending change in America will help cement a particularly unsynchronized phase in monetary policy, as various economies contend with different inflation risks.
Australian policymakers are likely to keep interest rates on hold again on Tuesday, while their Canadian peers, wary of the disruption to trade that might quickly materialize from over the border, may deliver another reduction of as much as half a percentage point the following day.
In Brazil, whose currency was hit in the past week by Trump’s threat to impose tariffs on the BRICS bloc, officials are poised to jack up borrowing costs to quell surging inflation pressures.
And for euro-zone officials setting rates on Thursday, the focus is shifting rapidly from monitoring lingering consumer-price risks to worrying about the fallout from the potential hit to global commerce. ECB president Christine Lagarde and her colleagues are set to cut by a quarter point—as are the Swiss, whose currency attracts speculators at times of geopolitical stress.
Those decisions are among the highlights in a period of concentrated monetary policy action leading up to the Federal Reserve decision on 18 December that economists reckon could prompt another quarter-point cut in the US.
Several inflation reports, including US consumer price index data on Wednesday, will offer Fed policymakers a final look at the pricing environment ahead of their meeting the following week. Any indication that progress has stalled on the inflation front could well undercut the chances of a third straight reduction in rates.
India releases consumer inflation on Thursday, and trade figures are due during the week from China, India, Taiwan and the Philippines.
Current Affairs – 09/12/24 I Source: Indian Express
India to form anti-drone unit for safe border
After some improvements, the system will be used across the borders with Pakistan and Bangladesh.
India will establish a “comprehensive” anti-drone unit to protect the country from threats posed by drones.
Addressing the 60th Raising Day Parade of the Border Security Force (BSF) as the chief guest in Jodhpur, Shah stated that the problem of drones is set to become more significant in the coming days.
A laser-equipped anti-drone gun mount system has been developed through a “whole government approach” involving all border security forces, the Ministry of Defence, DRDO, and various research departments of the Indian government.
“Within a few years, a comprehensive anti-drone unit will be established to protect the country from threats posed by drones,” he said.
The government has also introduced a Comprehensive Integrated Border Management System (CIBMS) for monitoring sensitive areas along the International Border.
After some improvements, the system will be used across the borders with Pakistan and Bangladesh. Efforts have also been made to strengthen border fencing, construct roads on the Indian side of the border, and undertake several other infrastructure projects
All is not well with soil – Opinion by Ashok Gulati, Ritika Juneja
December 5, 2024, was the 10th World Soil Day.
Topsoil — up to two to three cms in depth — which nature takes 1,000 years to create, is critical: Almost 95 per cent of food currently produced comes from it. So, ‘Caring for Soils – Measure, Monitor, and Manage’ — the theme of this year’s World Soil Day — was appropriate as our soils are becoming deficient in the essential nutrients needed for healthy soils.
The role of the fertiliser industry is critical in ensuring that our soils are healthy and well-nourished. While high-yielding seeds of various crops are a catalyst of change in agriculture, they cannot deliver high productivity without nutrients, which are provided by the fertiliser industry.
Let us now turn to Indian soils and the role of the fertiliser industry.
Less than 5 per cent of Indian soils have high or sufficient nitrogen, only 40 per cent have sufficient phosphate, 32 per cent have sufficient potash and just 20 per cent are sufficient in organic carbon. Our soils also suffer from a deficiency of micronutrients like sulphur, iron, zinc, boron, etc.
It is heartening to see that India is a net exporter of agri-produce. Despite Covid-19, in the three years from 2020-21 to 2022-23, India exported about 85 million tonnes of cereals. This was after giving cereals (rice and/or wheat) nearly free of cost to more than 813 million people. India is by far the largest exporter of rice in the world.
A part of this success story is written by the Indian fertiliser industry. It has done a yeoman’s service in ensuring that all major essential nutrients like nitrogen (N), phosphate (P) and potash (K), and other micronutrients, are either produced at home or imported in sufficient quantities, and distributed to our farmers well in time to give us higher productivity.
Having said this, we must also say that all is not well either with our soils or our fertiliser industry or our agriculture. There is a slack of at least 30 per cent, and at places even up to 50 per cent. It is this slack that needs to be filled and richer harvests will follow.
Our fertiliser sector is living on huge subsidisation. It amounted to Rs 1.88 lakh crore, which was almost 4 per cent of the Union budget of the last fiscal year.
Urea, which bags almost two-thirds of the subsidy, is being produced primarily in granular form, and its price is controlled by the government, roughly at $70/tonne, which is the cheapest in the world by a wide margin. This has remained almost constant for over a decade.
While DAP and MOP, were brought under the Nutrient-Based Subsidy scheme in 2010, urea was left out. As a result, the relative prices of urea, DAP and MOP were highly distorted as was the use of these essential fertilisers.
In most of the major agricultural states, N is being overused compared to the recommended dose, while P and K are underused. Punjab is a classic example where the N, P and K balance has gone for a toss. Compared to recommended doses, as per the package of practices given by Punjab Agriculture University (PAU), Punjab is using 61 per cent more N than is needed, 89 per cent less K, and 8 per cent less P.
Similarly, Telangana is overusing N by 54 per cent but 82 per cent less K, and 13 per cent less P. The situation in other states is also similar. As a result, farmers see a lot of greenery on their farms, due to the high use of N, but not enough grain due to relatively lower doses of P and K.
This highly imbalanced use of N, P and K, and the neglect of micronutrients, leading to suboptimal results on agricultural productivity and thereby farmers’ profitability, is largely caused by the fertiliser subsidy policy.
Think of the fact that the Nutrient Use Efficiency (NUE) of our current fertiliser use is not more than 35 to 40 per cent. The rest of the fertilisers’ quantity, especially N, is going into the atmosphere as nitrous oxide, which is 273 times the carbon dioxide. It is ironic that the massive subsidy on urea is actually creating more poison in the atmosphere than increasing grain yields. On top of this, at least 20-25 per cent of urea is being diverted to non-agricultural uses and also leaking to neighbouring countries. This must change.
The solution lies in deregulating the fertiliser sector from price controls. Farmers may be given equivalent direct income transfers in the form of digital coupons to buy fertilisers. Deregulating this industry on the lines of cement, diesel, etc, will make it much better in terms of innovation, and efficiency, and more importantly give the right signals to our farmers to use N, P, and K in the right balance. Also, we need to promote the use of micro-nutrients to give the best results in terms of productivity as well as farmers’ profits.
But this reform will require a lot of preparation. Triangulating data on fertiliser sales, soil health cards (SHC), PM-KISAN, land records, crops grown, bank accounts and mobile numbers of farmers would be needed.
The Union government will also have to communicate that these reforms are in the farmers’ interest. They will gain from it, as would the nation, its soils and agriculture, and the fertiliser industry can fly like the pharma industry for human health.
Gulati is Distinguished Professor and Juneja a Research Fellow at ICRIER.
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