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Indian Economy - Coggle Diagram

- - - - Employment Generation
      - Economic Growth
      - Source of Forex Earning
      - Poverty Alleviation
      - Reduction of Inflation and Regional Disparity
      - Source of Raw Materials for Industries
      - Food Security
    - - Climate Change
        
        60% Land under cultivation: monsoon dependent
      - Faulty implementation of govt policies
        
        Oppressive APMC Acts, Stocking limits under ECA
      - Investment issues
      - Inefficient MSP structure
        
        Only 6% farmers get MSP benefit
      - Poor Value Chain
      - R&D
        
        Less than 1% Agri GDP is spent
      - Rural Distress and Farmer Suicides
        
        NCRB: 40k farmer suicides b/w 1995-2018
      - Agricultural NPAs
        
        9.8%
    - - Reducing Farmers' Incomes
      - Rising Indebtedness
        
        52% agri households under debt
      - Unsustainable Livelihoods
        
        NSSO: >65% households have < 1ha land
      - Rural-Urban Migration
      - Exit from Agri Sector
        
        76% farmers gave up farming: CSDS
      - Rising Inequalities
      - Food Insecurity
    - - Shift from Cereals to high value crops
        
        Ex: fruits, vegetables
      - Decline in Coarse cereals and pulses
        
        Jowar Bajra declined due to low MSP
      - Expansion of Commercial Crops
        
        Ex: Sugarcane, cotton, oilseeds
      - Rise in Horticulture and Floriculture
    - - Benefits
        
        Reduced Costs & higher yields
        
        Cuts input costs by 18-20%
        
        Data Driven decisions
        
        Optimized Resource Use
        
        Environmental Benefits
        
        Efficiency Gains
        
        Ex: Fertigation
    - - Pradhan Mantri Fasal Bima Yojana (2016)
        
        Objectives
        
        Insurance coverage for notified crops
        
        Stabilize incomes
        
        Encourage innovation and modern agri practices
    - - Features
        
        Bijamrit
        
        Jivamrit
        
        Mulching
        
        Waaphasa
    - - Features
        
        Utilizes natural fertilizer
        
        Employs natural methods
        
        Ex: Crop rotation, natural predators
        
        Conserves resources
        
        Air, water, soil
        
        Supports wild life
        
        Organic products use
        
        Natural pesticides (Neem)
    - - Benifit to Small Marginal farmers
        
        Productivity
        
        Profitability
        
        Sustainability
        
        Income round the year
        
        Best utilization of small landholding
        
        Employment generation
    - - Benefits
        
        Market led approach
        
        Promotes diversification
        
        Higher incomes for farmers
        
        Prevent food inflation
        
        Boost exports
    - - Role in Agri growth and incomes
        
        Increase in Area under horticulture
        
        R&D Investment
        
        Post Harvest Management
        
        Better Market Linkages
        
        Employment Generation
        
        Crop Diversification
    - - Digital Agriculture Mission (DAM)
        
        Agri Stack
        
        Integrates data for credit, inputs etc
        
        Krishi DSS
        
        Geospatial platform for Indian agri
      - Crop Science for Food and Nutritional Security
        
        Climate resilient farming and food security by 2047
      - Sustainable Development of Horticulture
      - Strengthening of Krishi Vigyan Kendras (KVKs)
        
        Dissemination of farm knowledge and tech
      - Natural Resource Management Scheme
        
        Promotes sustainable resource use
      - PM Dhan Dhaanya Krishi Yojana
        
        Crop productivity in 100 low performing agri district
      - Mission for Aatmanirbharta in Pulses
    - - Benefits
        
        Food security
        
        Higher Yield
        
        Climate resilient
        
        Pest Resistance
        
        Nutritional Security
      - Threats
        
        Doubtful yield increase
        
        Terminator seeds
        
        Development of resistance in pests
        
        Biodiversity threat
    - - Benefits and Use
      - Applications
        
        Genetic Engineering
        
        Herbicide Tolerance
        
        For better weed control
        
        Sterile Insect Technique
        
        To control future generation of pests
        
        Molecular Breeding
        
        Development of improved varieties
    - - Causes
        
        Use credit for domestic purposes
        
        Lack of access to cheap credit
        
        Issues of social identity
        
        No collateral for institutional borrowing
        
        High input costs
      - Measures
        
        Access to credit
        
        Avoid farm loan waivers
        
        Accept gold as a collateral
        
        Credit gurantee for farmers
        
        Kisan Credit Card
        
        PM KISAN
        
        Increasing credit to allied activities
        
        Land Consolidation
      - Mahesh Kumar Jain Comm Recommendations
        
        Govts to increase Capex
        
        Credit only through KCC
        
        Avoid Farm loan waivers
        
        Sperate lending targets for allied activities
        
        Digitisation of Land records
        
        Revising PSL
        
        From 8 to 10% for small and marginal farmers
  - - - Dependence on Monsoon
      - Over extraction of Ground Water
        
        Punjab and Haryana
      - Ageing Infrastructure
      - Inter State Water Disputes
      - Delay in Projects
      - Inefficient Water Use
        
        Flood irrigation: 35-40% efficiency
      - High cost of Modern irrigation systems
    - - Benefits
        
        Water use efficiency
        
        Energy efficiency
        
        Festigation technique
        
        Increased crop productivity
        
        Inter cropping
      - Challenges
        
        Huge primary cost
        
        Lack of Tech support
        
        Knowledge Gap
        
        Delays in subsidy payment
        
        Greater maintenance requirement
    - - Jalyukta Shivar Yojana, Maharashtra
        
        Providing farm ponds for every farmer in their fields
      - Bhungroo, Gujarat
        
        Storing excess rainwater underground
      - Mission Kakatiya, Telangana
        
        Restoring minor irrigation sources
    - - PM Krishi Sinchayee Yojana
        
        Impact
        
        Improved water availability
        
        Check dams, contour bunds
        
        Enhanced irrigation coverage
        
        Micro irrigation, water harvesting
        
        Crop diversification and Intensification
        
        Cash crops, horticulture
        
        Soil Moisture Conservation
        
        Objectives
        
        Enhance water availability
        
        Improve on farm water use efficiency
        
        Achieve convergence of investments
      - Jal Shakti Abhiyan
      - Jal Shakti Ministry
      - National Mission on Micro Irrigation (NMMI)
      - National Mission for Sustainable Agriculture
        
        Organic Farming, Precision Agriculture
      - Neeranchal National Watershed Project
        
        improving institutional capacity, supporting planning, and helping farmers adopt new techniques
  - - - Reduce post harvest losses
      - Stabilize food prices
      - Food security
      - Improve farmer incomes
      - Support farm supply chain
      - Maintain Quality
    - - Issues
        
        Over reliance on rice and wheat
        
        Fiscal pressure on Govt
        
        Stocks over and above buffer limits
        
        Open-ended procurement
        
        WTO restrictions on domestic subsidies
        
        Amber Box
        
        Export controls on FCI
        
        Wheat and non-basmati rice
        
        Poor management
        
        No First in first out principle (FIFO)
      - Reforms
        
        Negotiable Warehouse receipts
        
        Collateral for credit
        
        Essential Commodities Act (ECA)
        
        Cold Storage Facilities
        
        PM Kisan SAMPADA
        
        Decentralised Procurement Scheme
        
        Agriculture Infrastructure Fund
        
        Village Storage Scheme
        
        SHGs provide holding capacity
        
        Shanta kumar Comm Recos
        
        Handover procurement to states
        
        Outsource stocking operations to CWC ans SWCs
      - Objectives
        
        Price support ops for farmers
        
        Distribution of food grains for PDS
        
        Buffer Stock for Food security
  - - - Lack of modern Infra
      - Lack of full regional Connectivity
        
        North East
      - Seasonally blocked routes
        
        Himalayas
      - Over reliance on road
      - Lack of all weather metalled roads
    - - Kisan Rail
      - Kisan Udan
      - PM Gram Sadak Yojana
      - Dedicated Freight Corridor
      - Transport and Marketing Assistance
  - - - Upstream
        
        Fragmented Landholdings
        
        Poor rural connectivity
        
        Inadequate Cold Storage facilities
        
        30-40% loss in perishables
        
        Information Asymetry
        
        No real time data of market demand
        
        Pre-harvest tie-ups
        
        Distress pricing
      - Downstream
        
        APMC Market inefficiencies
        
        High mandi tax, trade cartels
        
        Lack of Market Access
        
        Lack of Grading and Standardization
        
        Limits price discovery and exports
        
        Insufficient processing capacity
        
        <10% agri produce is processed
        
        Weak Farmer-Producer Linkages
        
        Price volatility
    - - Electronic National Agriculture Market (e-NAM)
      - AGMARKNET
        
        E governance portal
      - Kisan Credit Card Scheme
      - Formation and Promotion of FPOs
        
        Under "One District, One Product"
      - Market Intelligence and Early warning System Portal
      - Infra boost
        
        DFCs, Kisan Rail
      - Gramin Agricultural Markets (GrAMs)
    - - Functions
        
        Transparency
        
        Fair price discovery
        
        Market led extention services
        
        Market intelligence, buyer linkage
        
        Promotion of agri processing
        
        Ensuring same day payment
        
        Promoting PPP partnerships in markets
      - Issues
        
        Poor price realisation
        
        Exploitation by intermediaries
        
        Non transparent utilization of mandi levies
        
        Cartelization
        
        Poor infrastructure
        
        Monopoly of APMC
  - - - High Growth sector
      - Important source of GDP and Forex
      - Helps build "Brand India"
    - - Low share of high value added products
        
        Only 15% vs US 25%, China 49%
      - Poor export competitiveness
      - High logistics cost
      - Inadequate post harvest infra
      - Tariff/ Non Tariff Barriers
        
        Phyto sanitary standards
    - - Agri & Processed Food Products Ex Dev Authority (APEDA)
      - National Programme for Organic Production (NPOP)
      - RoDTEP
      - Agri Udaan
      - Safe Food Export Traceability Portal
  - - - Reduced cost of procuring imports
      - Finances at reasonable cost
      - Collective Bargaining power
      - Reduced post harvest losses
        
        Ex: Jammu Oriental FPO cold chain infra
      - Social Impact
        
        Tribal women in Pali, RJ getting higher price for apples
      - Address land fragmentation
    - - Unorganised range of activity
      - High cost of institutional credit
      - Lack of access to modern tech
      - Inadequate infra
  - - - Scope
        
        Precision Agriculture
        
        Sensors, drones
        
        Smart irrigation
        
        AI based yield forecasting
        
        Digital soil mapping
        
        Blockchain enabled supply chain traceability
      - Significance
        
        Resource optimization
        
        Improved decision making
        
        Productivity gains
        
        Market empowerment
        
        Capacity building
    - - Crop Monitoring & Health assessment
      - Yield prediction
      - Supply Chain optiimization
      - Pest and Weed control
      - Soil and Irrigation Management
      - Automated Robotics and machinery
    - - Kisan Call Centres (KCC)
      - eSagu
        
        Personalized expert advice to small and marginal
      - Direct Benifit Transfer (DBT) Portal
      - e-NAM
      - e-Choupal
        
        Village kiosk with internet access and expert
      - mKisan SMS Portal
      - Digital Mandi
    - - Lack of infra
      - Adoption inertia due to traditional attitude
      - Lack of awareness and education
      - Cyber security
      - Linguistic barrier
  - - - Challenges
        
        Fiscal burden
        
        Market Distortion
        
        Identification of benifeciaries
        
        Envi challenges
        
        Corruption
      - Advantages
        
        Increase purchasing power of farmers
        
        Choice to spend
        
        Prevents misuse
        
        Fund capital for agri
        
        Reduces govt burden: transport, storage
      - Examples
        
        Direct Cash payments
        
        PM KISAN, PAHAL LPG
        
        Loan waivers
    - - Challenges
        
        Distorts cropping patterns
        
        Overuse of natural resources
        
        Cereal centric support
        
        WTO pressure to minimize
        
        Vote bank politics
      - Advantages
        
        Promotion of sustainable practices
        
        Crop diversification
        
        Ensures quality inputs
        
        Seed, fertilizer
        
        Ensures food security
        
        Helps contain migration from agri
        
        Farmers training and use of technology
      - MSP
        
        Importance
        
        Safety net against price fluctuation
        
        Food security
        
        Alleviation of rural poverty
        
        Remunerative income
        
        Crop diversification
        
        Higher investments and tech adoption
        
        Impact on Cropping Pattern
        
        Wheat and rice in Punjab, Haryana
        
        Millets decline
        
        Sugarcane cultivation in UP, MH, Bihar
        
        Shrinkage of area under pulses and oilseeds
        
        Challenges
        
        Distortion of Cropping Pattern
        
        Fiscal burden
        
        Excess storage
        
        Double the requirement
        
        WTO Challenges
        
        Degradation of Environment
        
        Groundwater deterioration
        
        Shanta kumar comm: Only 6% beneficiary
        
        Way Forward
      - Examples: Power, irrigation, fertilizer subsidies
    - - Breach of De Minimis Limits: 10%
      - Distorts global prices
      - Transparency issues
      - Export subsidy allegations
    - - Kelkar Committee recos
        
        Phased elimination of subs on diesel, petrol etc
        
        Rationalization of subsidy on fertilizer
      - Farm bills
      - Sunset clause for subsidies
      - Long term policies on export trade
      - NITI Aayog reco
        
        Subsidies on micro irrigation
        
        Reorienting fertilizer subsidy policy
  - - - Excessive coverage
        
        Over 81Cr
      - Leakages
        
        28% (~20 MMT) diversion
      - Nutritional deficiency
        
        NFHS: Child stunting: 35.5%, wasting19.3%
      - Fiscal Impact
        
        Rs 2.03L Cr (FY25) Subsidy cost
      - Ghost beneficiaries
        
        47 million bogus ration cards cancelled (2013-21)
      - Corruption at FPSs
    - - Shanta Kumar Committee Recos
        
        End to End Computerization
        
        Reduce coverage to 40%
        
        6 month ration disbursement at once
        
        Cash transfers
        
        Buffer stock liquidation policy
      - Tech reforms
        
        Digitization of ration cards, aadhar linkage, ePoS devices
      - One Nation One Ration Card
      - Infra improvement
        
        Cold storage, warehouses
      - Nutritional initiatives: POSHAN Abhiyan
  - - - Chronic undernutrition
        
        224.3 million in 2019-21 acc to State of Food Security and Nutrition report
      - Low agri productivity/ yield
      - Food basket shifting away from cereals to high value commodities
    - - Bogus ration cards
      - Corruption
      - Skewed production
      - Nutritional security
      - Rural-Urban bias
    - - NFSA, 2013
      - PM Garib Kalyan Anna Yojana
      - Antyodaya Anna Yojana
  - - - Alternate Income to farmers
      - Employment generation
      - Food and nutrition
      - Efficient use of small land parcels
      - Sustainable inputs
    - - Yield and productivity
      - Outbreak of diseases
      - Quality feed availability
      - Funding issue
      - Poor veterinary infrastructure
    - - Ensuring feed and fodder security
      - National Programme for Dairy Development
      - Promoting indigenous breeds
        
        Rashtriya Gokul Mission
        
        National Cattle and Buffalo Breeding Project
      - Veterinary services
        
        Pashu Sanjivani
      - E-Pashu Haat Portal
        
        Connects breeders and farmers for germplasm
      - Animal Husbandry INfra Dev Fund (AHIDF)
      - Gobar Dhan initiative
    - - Challenges
        
        Under usage of fresh and brackish water resources
        
        Shortage of fish seed
        
        Lack of mapping zone of fishes
        
        Obsolete tech
        
        Bottom trawling
        
        Unsustainable practices like blast fishing
      - Policy intervention
        
        PM Matsya Sampada Yojana
        
        National Policy on Marine Fisheries
        
        National Fisheries Dev Boiard
        
        KCC for fishermen
        
        MGNREGA for farm ponds
- - - - Accelerated GDP Growth
        
        Hindu Rate: 3-4% to 6-7%
      - Expansion of Private Sector
      - Surge in FDI
        
        $97M in 1991 to $82B in 2021
      - Growth in Services & IT
      - Trade and Global integration
      - Improved Forex reserves
        
        $5.8B in 1991 to $700B in 2024
    - - Rising Inequality
        
        Oxfam report
      - Jobless Growth
      - Small business pressure
      - Agricultural Neglect
      - Economic Instability
        
        Periods of volatility
      - Envi degradation
    - - De-reservation of Indutries
      - De-licensing of INdustries
      - Abolition of MRTP Limit
        
        Monopolies and Restrictive Trade Practices Act
      - Promotion of Foreign investment
      - FEMA replaces FERA
        
        Unified exchange rate
      - Simplified policy for location of industries
      - Phased production abolished
      - Removal of mandatory convertible clause
        
        Policy of nationalisation: Loan to equity
    - - Positives
        
        Enhanced Competetiveness
        
        Global Expansion
        
        Bharti Airtel in Africa
        
        Innovation and Diversification
        
        Meeting global outsourcing demands: Wipro, TCS
        
        Capital Market Access
      - Challenges
        
        Resource assymetry
        
        Adv tech, global branding
        
        Market Domination
        
        Dependence on Protection
  - - - Focus on finance, telecommunication
    - - IT-BPM~7.5% GDP by 2023
    - - Rigid labour laws, land acquisition delays
  - - - Achievements
        
        FDI growth
        
        Inflows increased 119% (2014-24)
        
        Exports and employment
        
        Manufacturing jobs up from 57M to 65M (2017-23)
        
        Digital Transactions
        
        Ease of Doing Business
      - Challenges
        
        Stagnant Manufacturing Share
        
        15-16% of GDP, far from 25% target
        
        Rising Unemployment
        
        India lost 24 million jobs (2016-21)
        
        Declinig FDI-to-GDP Ratio
        
        Net GDP drop from 1.5% to 0.8% (2014-24
        
        Missed Global shifts
        
        China+1
        
        Bias towards capital intensive sectors
        
        Skilled workforce gap
    - - Challenges
        
        Subsidy for finishing not value add
        
        Bias towards large or medium sized units
        
        One size fits all approach
        
        Lacks sector specific considerations
        
        Overlooking global dynamics
    - - To make Manufacturing share in GDP 25%
    - - GeM, Open Network for Digital Commerce (ONDC)
    - - PM Gati Shakti, Industrial corridors
  - - - Informal nature
        
        90% are informal
      - Low global market share
        
        Only 2%
      - Integration with e-commerce
        
        Total MSME e-commerce exports just $2 Billion
      - Dwarfism
        
        85% older than 10 yrs, smaller than 100 employees
      - Systemic Gender Discrimination
        
        Only 18% women owners
    - - Credit Gurantee Fund Trust for MSMEs
      - ASPIRE Scheme
        
        Setup incubation and technology
      - SFURTI Scheme
        
        Cluster traditional artisans ans industries
      - Support and Outreach Programme
        
        To diversify procurement by MSMEs
      - Foreign Trade Policy 2023
        
        Simplify Export procedure
      - Digital Saksham
        
        integrate 3L+ MSMEs into digital economy
      - UDYAM Portal
        
        MSME Registration
  - - - High input cost
      - Stiff global competition
        
        Bangladesh, Vietnam
      - Weak global demand
        
        From EU, US
      - Infra and tech gaps
      - Small unit sizes
        
        India avg textile units= 100 machines, Bangladesh = 500
      - Rigid labour laws
    - - National Technical Textile Mission
        
        Expand domestic market to $40-50 Billion by 2024
      - Technology Upgradation Fund Scheme (TUFS)
        
        Boost investment, productivity
      - Scheme for Integrated Textile Parks (SITP)
      - SAMARTH
        
        Train Workforce across value chain
      - PM MITRA Parks
  - - - Lifeblood of modern information age
      - Drivers for ICT development
      - Used in critical infra: communication, power
      - Multiplier effect across sectors
    - - National Policy on Electronics
        
        Build globally competitive ecosystem
      - Semicon India Program
      - India SemiConductor Mission (ISM)
        
        Drive semiconductor display and fab development
      - FDI Policy
        
        100% FDI under automatic route
      - Make in India+ EMC Scheme
        
        Promote investment in semiconductors
    - - Lack of fabrication units
      - Resource intensive chip production
        
        Ultrapure water and stable power supply
      - Closed ecosystem
        
        Dominated by few countries: Taiwan, South Korea
      - Insufficient Talent pool
      - Limited original research
      - Multiple clearances needed
    - - Focus on Outsourced Semiconductor Assembly and Test Units (OSAT)
      - Utilize QUAD Semiconductor Supply Chain Initiative
  - - - Supportive Policies
        
        Fund of Funds for Startups (FFS)
      - Robust digital infra
        
        Rs 20LCr+ transactions in 2024
      - Large Young market
        
        65% population under 35
      - Skilled Talent
        
        1.5 million engg grads annually
      - Strong VC interest
      - RIse of Non Metro Hubs
        
        50% of startups emerge from Tier II and III
    - - Startup India Hub
      - Startup India Seed Find Scheme
      - Credit Gurantee Scheme for Startups (CGSS)
      - BHASKAR Reistry
        
        Streamline interactions with startup ecosystem
      - Support for Intellectual Property Protection (SIPP)
    - - Heavy concentration of Funding
        
        Delhi NCR, Mumbai, Bengaluru
      - Lack of women participation
        
        Only 3 of the top 20 VCs had a woman partner
      - Limited geographical spread
      - Regulatory Hurdles
      - Lack of mentorship
    - - Promote Vocal for Local
      - Establish Innovation Zones
    - - Pros
        
        Innovation
        
        Potential for High Growth
        
        Flexibility
      - Cons
        
        High Failure Rate
        
        Upto 90%
        
        Financial Risk
        
        Uncertainity
  - - - Fusion of Multiple techs
        
        Physical, digital to biological
      - Cyber Physical Systems
        
        IoT, Big Data analytics, AIML, Cloud computing
      - New Center iin India
        
        C4IR in Hyderabad
    - - Increased Productivity
      - Improved IT Security
        
        Adv cyber security tools
      - Better Machine Safety
        
        30% fewer injuries in automated plants
      - Enhanced Infra and connectivity
        
        Can reduce logistics costs by 10-15%
    - - Job polarization
        
        14 million job losses by 2027 due to automation: WEF
      - Identity concerns
        
        Facial recognition, data mining
      - Widening inequality
        
        Oxfam
      - Reduced employment
  - - - Infra Projects
        
        NIP
      - Integrated Development
        
        National Industrial Corridor Dev Programme
      - Atmanirbhar Bharat and PLI Schemes
      - Warehouse development
      - Customs Rules and Reforms
        
        Encourage domestic manufacturing
    - - Certification Issues
        
        Indian factories lack global certifications (ISO/BSI)
      - Underdeveloped Manufacturing Base
      - Weak infra
        
        Only 3% GDP to infra
      - Policy implementation gaps
    - - Investments in Infra
      - Policy interventions
      - Judicious import policy
      - Stable power supply
      - Transfer of skills
  - - - Duty free imports and domestic purchases
      - Exemption from variety of taxes
      - Approvals at central and state level through single portal
    - - Taxation
        
        MAT & DDT burden
        
        Inverted Duty Structure
      - Governing Laws
        
        Old SEZ Act 2005 outdated
        
        Rigid Land Acquisition and Exit Norms
      - Administration
        
        Bureaucratic Hurdles
        
        Over Centralized Governance
- - - - Increasing income, employment, productivity
    - - Sectoral shift, Urbanization, Tech advancement
    - - Equity, access to services, social justice
    - - Conservation of resources, ecological balance
    - - Improve capabilities
  - - - Doubled from 2014-2024
    - - Savings to Disposable income ratio: improved to 30.7% (FY24)
    - - 17Cr jobs from 2018 onwards. Unemployment down to 3.2%
    - - Rs 11.11 LCr from 7.28LCr in 2 yrs
    - - Direct tax annual increase about 17% (FY 25)
  - - - 5% average (2017-23)
    - - $94 Billion FY25
    - - Supply chain fragmentation
    - - Oil dependency in Nigeria leading to resource curse
  - - - GDP
      - GNP
      - GVA
      - Per-capita income
    - - HDI
      - Gini coefficient
      - MPI
  - - - Savings rate
      - Labour Force Participation
      - Capital Stock
      - Production Growth
      - Tech and Innovation
      - Human Capital Development
      - Institutional and Governance Quality
    - - Structural Bottlenecks
        
        Agri 45% workforce, 15% GDP
      - Infra Deficits
        
        Rankn 38/139 LPI 2023
      - Skill Mismatch & Education Gaps
      - Weak Financial and Banking Sector
        
        NPA ~4.5% 2024 (RBI)
      - Regulatory and Bureaucratic Hurdles
        
        EoDB 63/190
      - Technology Lag
        
        R&D spending ~0.7% of GDP vs China (2.4), Israel (4.9)
  - - - Employment Generation
      - Poverty Alleviation
      - Skill Development
      - Good Governance
      - Access to Essential Services
      - Economic Growth
      - Social Development
    - - Economic
        
        Poor Industrial Base (lags behind 25%)
        
        Resource constraints
        
        Agri backwardness
      - Social
        
        Gender Disparity
        
        Social Divisions
        
        Rural-urban divide
        
        Poor nutrition levels
        
        Global Hunger Inder (GHI) 2024 Rank 105/127
      - Administrative
        
        Corruption
        
        Rank 96 on Corruption Perception Index
        
        Bureaucratic Hurdles
        
        Rank 63/64 in World Competetiveness index 2024
      - Underutilised Manpower
        
        Low Skill (4.7% formal skill training)
        
        Unemployment, Underemployment
        
        Informal Workforce (80%)
        
        Poor ed-employment linkage
        
        Low Female LFPR
    - - PMAY
      - PMEGP
      - Mudra Yojana
      - Ayushman Bharat
      - Jan Dhan Yojana
      - PM Vishwakarma
      - Digital India
  - - - Historical (British)
      - Planning Failure (Budgetary allocations)
      - Lack of ancillary industries
      - Industrialization failure
      - Services sector concentration
  - - - Poor compliance of envi laws (EIA, Coastal Zone norms)
      - Flawed subsidies (Water, Electricity)
      - Ignored externalities
        
        Envi cost of resource depletion
      - Weak institutions
      - Population Pressure
  - - - Insufficient Minimum wages
        
        45% workforce < Rs 9750/ month
      - Wage Discripancies
        
        As low as Rs 176/ day.
      - Poverty Alleviation and SDGs
        
        SDG 10
      - Rising Inequality
        
        Oxfam: Top 1% = 22.6% income
      - Constitutional Backing
        
        Art 43
    - - Diversity in Liviing Cost
      - Unorganised Sector
      - Fiscal implications
      - Lack of awareness
      - Automation and Gig economy
- - - - Zamindari, Mahalwari, Ryotwari
    - - Regulation of Rent
        
        Fixed rent in range of 25-33% of gross produce
      - Security of Tenure
        
        Kerala, West Bengal
      - Ownership Rights to Tenants
        
        Tenants pay compensation to landlord
    - - Land Ceiling Policy
        
        Effectiveness
        
        Redistribution of surplus land to landless farmers
        
        Prevents concentration
        
        Enhances rural incomes
        
        Improves access to credit
        
        Promotes social justice
      - Consolidation of land
        
        Punjab, Haryana, UP
      - Cooperative Farming
  - - - Presumptive
        
        Possession of historical transactions, not guaranteed ownership
      - Conclusive
        
        Benefits
        
        Reduced Land Disputes
        
        Improved access to credit
        
        Greater market efficiency
        
        Challenges
        
        High initial costs
        
        Fraudulent Claims
        
        Social & Political Complexities
        
        State guaranteed ownership titles
    - - Dominance of Presumptive system
      - Limited accuracy
        
        Incomplete, outdated, inaccurate
      - Multiple Claims
      - Bureaucracy and corruption
    - - Model Land Titling Act
        
        Conclusive Titling
      - Digitization of Land Records
      - Blockchain Technology
  - - - National Generic Document Registration System
      - Unique Land Parcel Identification Number (ULPIN)
    - - Bhoomi Project (2000)
        
        Computerize land records
      - DILRMP (2008)
        
        Reduce land disputes
      - SVAMITVA (2021)
        
        Mapping land parcels in rural uninhabited areas
    - - Multiple Documents
      - Sloe computerization
      - Land conflicts
        
        2/3rd civil cases are land related
      - High Cost of Property registration
        
        Avoid registration to avoid stamp duty
      - Gaps in law
        
        Transfer of Property Act, 1882, Registration Act 1908
  - - - Ex: Project BHOOMI
- - - - Economic
        
        Decline in manufacturing jobs
        
        Laboour under utilisation
        
        Rise in Voluntary unemployment
      - Structural
        
        Outdated edu system
        
        Inadequate industry growth
        
        High dependence on agri
      - Social
        
        Rapid Population Growth
        
        Gender Inequality
        
        Issue of getting decent work
      - Legal & Administrative Causes
        
        Shrinking public sector
        
        Inadequate Labour Market Policies
        
        Inefficient Employment exchanges
    - - Methodology
        
        Usual Status (US)
        
        Current Weekly status (CWS)
        
        Current Daily Status (CDS)
      - Limitations
        
        Disguised unemployment unaccounted for
        
        Does not capture underemployment /quality of emp
        
        Self emp may mask hidden unemployment
        
        Inadequate coverage of gig workers
      - Suggestions
        
        Incorporate skill-job mismatch metrics
        
        Capture Informal and Gig Economy
        
        Gender sensitive measurements
    - - PM Krishi Vikas Yojana
        
        Skill based training
      - DDU- Grameen Kaushalya Yojana
        
        Providing skills to rural youth
      - PM- Employment Generation Programme
        
        Credit linked scheme for non farm sector micro enterprises
      - PM MUDRA Yojana
        
        Loans to SMEs
      - Stand Up India
        
        Promote entrepreneurship among women, SC/ST
      - Employment Linked Incentive (ELI)
        
        Incentives to employers for hiring
      - PM Viksit Bharat Rojgar Yojana
  - - - Lack of Social Protection
      - Job Insecurity
      - Limited Credit Access
      - Data deficiency
    - - Complex GST Compliance
      - Ineffective Industrial incentives
      - Job insecurity
      - Ageing population
      - Social Barriers
      - Fragmented industries
    - - Recognize invisible labour
      - Expand social security
      - Skill Dev
      - Boost digital payments
  - - - Adaptability
      - Career Growth
      - Entrepreneurship
      - Demographic Dividend
      - Reducing Enemployment
      - To make in India successful
    - - PM KVY
      - DDU GKY
      - SANKALP
      - STRIVE
      - PM Kaushal Kendra
      - ASEEM Portal
      - Indian International Skill Centers (IISCs)
  - - - Tech advancement
      - Slow Industrial Expansion
      - Informal sector dominance
      - Missing middle
  - - - Low skill Levels
        
        Only 4.7% workforce has formal skill training
      - Education-Employment Gap
      - Underemployment & Informality
      - Gender-Disparity
      - Weak Vocational Training
    - - Manufacturing
      - Green Economy
      - Digital Startups
      - Tourism and hospitality
  - - - Recognition in National Accounts
      - Skill Dev and Certification
      - Social security coverage for Care workers
      - Access to credit and Entrepreneurship
      - Digital Platforms for Care
  - - - Job Flexibility
      - Low skilled jobs
      - Chance to gain experience
      - No age barrier
      - Beneficial for women
    - - Labour bargaining power weakened
      - Wages below minimum wage
      - Hampers inclusive growth
      - Limited access to finance
      - No social security benefits
    - - Coverage under PM-JAY
      - Coverage under Social Security Code, 2020
      - UDYAM Portal
  - - - Rigid Labour Laws discourage investment
      - Low formal employment
      - Labour market flexibility boosts competition
      - Support to manufacturing sector
    - - Simplification & consolidation
      - Universalisation of Minimum Wages
      - Flexibility in Hiring
      - Inclusion of Gig & Platform Workers
      - Enhanced worker safety
- - - - Economic self sufficiency. Growth Rate: 3.9%
    - - War and drought. Growth Rate: 4.1%
    - - Political instasbility and slowdown. GR: 2.9%
    - - Industry de-regulation. GR: 5.7%
    - - LPG. GR: 5.8%
    - - Global financial crisis. GR: 7%
    - - High Fiscal deficit and inflation. GR: 6.7%
  - - - Space
      - Nuclear
      - Defense
    - - Slowdown to 5%
      - High food inflation 12%
      - Structural Constraints
        
        Low farm productivity
        
        Large informal sector
        
        Subsidy inefficiencies
  - - - 10th to 5th largest economy
      - Steady growth post pandemic
    - - Airports, Road and Rail networks
    - - University enrollment 3.4Cr to 4.1Cr
      - Gender parity: Girls GER > Boys GER in Higher edu
  - - - Recapitalization and PSB merger
      - IBC 2016
    - - RERA 2016 - Transparency in Real estate
      - GST Act
    - - Tax reforms
      - De-criminalization
    - - Make in India
      - Increased FDI limits
    - - Credit Gurantee Scheme
      - TReDS
    - - UPI, e-Rupee, Digi Stack
    - - Bharatmala, Sagarmala, UDAN
  - - - Trade fragmentation
      - AI Automation- Jobloss
    - - High global food, energy prices
      - Currency depreciation
    - - GDP per capita: $2,940 (139th)
      - Oxfam: Top 1% - 40% wealth
    - - High agri dependence, low GDP contribution ~ 16-17%
      - Resource strain: 147Cr people
    - - 7ht most climate vulnerable
      - $9-10 Billion loss annually
  - - - Digi Infra
        
        90Cr internet users
        
        World's lowesr data cost @ Rs 6.7/GB
      - Digi Governance
        
        Digilocker, UMANG, MyGov,
        
        JAM, DBT
      - Digi Payments
        
        Rs 261 LCr (FY25)
      - Startups
        
        1.6L recognized
    - - Digital Divide
      - Cybersecurity
      - Digital Lietracy
      - Digital Infrastructure
      - Data Privacy
      - Language barrier
    - - Accelerate BharatNet
      - Multilingual Apps
      - Robust cyber defense systems
      - Implement DPDP Act
- - - - Fossil Fuel dependence
      - Aging Infra
      - High Transmission losses
        
        Averaging about 32%
      - Poor grid integration
      - Financial distress of DISCOMs
      - Storage and intermittency
    - - National Programme on Light Emitting Diodes (LEDs)
      - UJALA Scheme
        
        Promote energy efficiency through LEDs
      - SAUBHAGYA
        
        Reduce discontinuous power supply
      - PM-KUSUM
        
        Solar energy in rural areas
      - PM Surya Ghar Muft Bijli Yojana
        
        300 Cr units free electricity for 1Cr households
      - National Bio Energy Mission
        
        Biogas plants
      - BEE Star labelling Program
    - - Objective
        
        Evacuation of power from renewable energy rich states Ex: Tamil Nadu, Rajasthan
        
        Support Panchamrit: 500 GW by 2030
    - - Ethanol Blending (10%) target achieved
      - Over 2.8 Cr households electrified under PM Sahaj Bijli Har Ghar Yojana
      - LED Bulbs and LED Fans leading to over Rs 19000Cr in savings
    - - Challenges
        
        High AT&C Losses
        
        High subsidies
        
        Nearly 25% of all sale is subsidised
        
        Higher cost of power procurement
        
        80% of the expenditure of the discoms
        
        Profitability
        
        Average 0.49/ unit
        
        Poor Cash flow
        
        Lack of independence and autonomy
    - - Benefits
        
        Low maintenance cost
        
        Sustainability
        
        Atmanirbhar Bharat
        
        Emission commitments
        
        Opportunity for pvt sector
      - Challenges
        
        Reliability
        
        Intermittent sources like solar need supplementary sources to maintain base load like therma
        
        Creation of Storage Infra
        
        Affordability
        
        Funding
        
        Building Maintenance Capability
        
        To reduce imports
        
        Energy Trilemma
        
        Energy security, affordability, envi sustainability
      - Govt initiatives
        
        FDI Policy
        
        100%
        
        National Solar Mission
        
        PLI Scheme
        
        National Green Corridor
        
        Promotion of Solar Parks
        
        SRISTI Scheme
        
        PM-KUSUM
    - - Methanol and Biomass
      - Hydrogen Fuel Cell Vehicles
      - Grid Integration
      - Renewable Energy evacuation
      - National Green Hydrogen Mission
  - - - Economic Growth
      - Employment Opportunities
      - Boost to Manufacturing & Exports
      - Rural Development
        
        Transport of Agri goods
        
        Access to Urban Amenities
      - Promotes National integration
        
        Facilitates troop movement
      - Contribute to Sustainable Development Goals
        
        Urban public transport reduces pollution
    - - Safety related concerns
        
        Almost 400 daily road related deaths
      - Policy and Infra related concerns
        
        Legislative lacunae, poor access to hinterland
      - Financial Concerns
    - - PM GATI Shakti Plan
        
        Objectives
        
        Incorporate imp eco zones into PMGS-NMP
        
        Unified portal of 16 ministries
        
        Strategic planning, innovative financing methods, leveraging technology
        
        Impact
        
        Cutting logistics costs
        
        Developing multi modal logistics
        
        Reducing Travelling Distances
        
        Challenges
        
        Structural problems
        
        Land acquisition, envi clearances
        
        Financial Constraints
        
        Reluctance of pvt banks
        
        Centre State coordination Issues
        
        Multiple authorities
      - Regional Rapid Transit System (RRTS)
        
        Significance
        
        Increased Eco activity
        
        Imoroved access
        
        Savings in travel cost and time
        
        Lower emissions
        
        Easing of road congestion
        
        Challenges
        
        Financial constraints
        
        Envi Concerns
      - National Infrastructure Pipeline
        
        Rs 111LCr (2019-25) 18% funds for Roads
      - Bharat Mala Pariyojana
        
        Improve quality of roads & const of new roads
      - Green Highways Policy
      - Bhoomi Rashi-Land Acquisition Portal
      - 100% FDI automatic route
    - - Govt strategies
        
        Mass Rapid Transit System (MRTS)
        
        Bus Rapid Transit Systems (BRTS)
        
        National Electric Mobility Mission (FAME)
        
        Unified Metropolitan Transport Authority
        
        Non-Motorised Transport (NMT)
        
        Pedestrian and cycling infra
  - - - Congested Networks
        
        60% routes exceeding 100% capacity
      - Sub-Optimal Internal Resource Generation
        
        Minimal non-fare revenues, high freight tariffs
      - Poor Organizational Structure
        
        Lack of market orientation
      - Safety and Service Quality
        
        Accidents, delays
      - Inefficient Terminals
      - Lack of Economies of Scale
      - Environmental Concerns
        
        Noise poll, inadequate waste management
    - - Kavach- Automatic Train Protection System (ATP)
      - Goal of Net-zero emissions by 2030
      - Station Infra Redevelopment Programme
        
        Redevelop 400 railway stations under PPP model
      - For improving efficiency
        
        Mission Hungry for Cargo
        
        To raise share of freight from 27 to 43%
        
        Mission Raftaar
        
        Inc speed of express train by 25 Kmph
    - - Dr Kakodkar Committee on Safety Review
        
        Adv signalling systems
        
        Eliminate all level crossings
        
        Corporatize Indian Railways
      - Bibek Debroy Committee
        
        Estb independent regulator RRAI
        
        Pvt entry in freight and passenger ops
        
        Estb Indian Railway Manufacturing Company for capacity
    - - Significance
        
        Increased capacity
        
        Decongestion
        
        70% freight now on DFC
        
        Punctuality
        
        Reduce unit cost of production
        
        Reduction in Pollution
        
        Cost Reduction
        
        Infra Upgradation
        
        Modern signalling systems, electrification
      - Issues and Challenges
        
        Land Acquisition
        
        Double stack vs single stack
        
        Double for WDFC and Single for EDFC
        
        Slow progress
        
        Funding and Financing
        
        Technical Challenges
        
        Integration with existing network
  - - - Significance
        
        Fuel efficiency & Cost-Effectiveness
        
        105 ton km per liter by IWT vs 85 (rail), 24 (road)
        
        Eco-Friendly Transportation
        
        Decongestion of Roads and Railways
        
        Enhanced connectivity for Remote Areas
        
        NE India: NW-2 Brahmaputra
        
        Tourism & Employment Generation
        
        Kerala's NW-3: backwater cruises
        
        Trade boost
        
        Indo-Bangladesh Waterways Protocol
      - Issues/Challenges
        
        Inadequate draught levels
        
        Dredging required for navigation
        
        Problem of Siltation
        
        Reduces river depth
        
        Absence of Transhipment Port
        
        Additional costs and delays
        
        Regulatory issues
        
        Various States' Ferries Act
        
        Envi clearances
      - Steps Taken
        
        Jalvahak Scheme
        
        Reduce logistics cost by reimbursement
        
        Inland Vessels Act, 2021
        
        Unified regulatory Framework
        
        Jal Marg Vikas Project
        
        Reduce traffic on roads and rails
        
        Sagarmala Project
        
        Port led development
        
        Tarrif regulation by pvt ports
    - - Achievement
        
        Dev of New Ports
        
        Investment for Capacity Building
        
        +80 MMT per annum
        
        Improvement in Operational Efficiency
        
        Turn around time decreased to 26.5hrs from 44.7hrs
        
        Navigation through rivers
      - Sagarmala 2.0
        
        Focus on ship building, repair, breaking, recycling
        
        Aligned with Maritime Amrit kaal Vision (MAKV 2047): India top 5 shipbuilding nations
    - - Issues and challenges
        
        High Costs
        
        13-14% of GDP (vs 8-10% global)
        
        Fragmentation
        
        80% sector unorganised
        
        Weak INfra
        
        Inadequate roads, ports, & warehouses
        
        Skill Gaps
        
        Last-Mile Issues
        
        Slow Tech Adoption
        
        AI, IoT, Blockchain
        
        Lack of Multi-Modal Capabilities
      - National Logistics Policy (NLP), 2022
        
        Vision
        
        Integration of Digital System (IDS)
        
        Unified Logistics Interface Platform (ULIP)
        
        Ease of Logistics (ELOG)
        
        System Improvement Group
      - Importance
        
        Economic contribution
        
        Job creation and employment
        
        22 million
        
        Reduces cost & enhances competitiveness
        
        Ex: GST reduced truck wait times
        
        Supports e-commerce growth
        
        Boosts supply chain efficiency
        
        Ex: Multi modal logistics parks
  - - - Regulatory Complexities
        
        DGCA, AAI, MoCA
      - Skilled Workforce shortage
        
        Mass flight cancellations by Indigo
      - Dollar Dependency impact
      - Cut throat pricing
        
        Closure of Go First
      - Supply Chain issues
        
        Many plains grounded
      - High Fuel Costs
        
        50-70% op expenses
    - - Digi Yatra Platform
        
        Avoids multiple checks
      - UDAN Scheme
        
        RCS
      - GAGAN
        
        Satellite based augmentation system
      - Krishi Udan
      - National Civil Aviation Policy (NCAP) 2016
        
        Promotes Make in India for Civil Aviation Sector
- - - - Vital link b/w agri and industry
    - - Mega Food Parks Scheme - 5 Lakh jobs
    - - 25-35% food wasted
    - - Increase shelf life. Ex: Frozen Safal Peas
  - - - Rice, wheat, potato etc
    - - Fruits, vegetables, meat etc (HCES,2024)
    - - Sixth biggest agri exporter
  - - - Fragmented land holdings, no mechanization
    - - Dominated by unorganized sector
    - - Uneven distribution of cold storages
  - - - National Skill Development Corporation (NSDC)
  - - - Mega Food Parks
      - Integrated Cold Chain Infra
      - Expansion of capabilities
  - - - Issues
        
        Fragmented Supply Chain
        
        Poor Raw Material
        
        Post harvest losses (30-40%)
        
        Middlemen Control
      - Solutions
        
        Promotes FPOs
        
        Better seed availability
        
        Expand cold chains, Kisan rails, PMKSY support
        
        Enable e-NAM
    - - Issues
        
        Low Processing (<10%)
        
        Regulatory Hurdles
        
        Export Barriers
        
        Fresh food bias
      - Solutions
        
        Boost Mega Food Parks
        
        Simplify FSSAI Norms
        
        Upgrade labs to CODEX standards
        
        Run awareness campaign on safety, shelf-life
    - - Cost of doing business
      - Vital in Food Industry
      - Efficient Customer Service
      - Brand Development
    - - Regulate Demand-Supply
      - Public Private Partnership
      - National Agri Market (e-NAM)
      - Contract Farming
      - Electronic Negotiable Warehouse Receipts (e-NWR)
      - Logistic Improvements
        
        PM Gram Sadak Yojana, SAGARMALA< BHARATMALA
- - - - Public Goods
        
        Defense, Street Lights
      - Merit/ Demerit Goods
        
        Subsidize vaccines, tax tobacco
      - Infrastructure Dev
        
        Highways, Schools
    - - Progressive Taxation
        
        Income Tax
      - Social Welfare
        
        Food subsidy, pensions
      - Subsidies and Grants
        
        Housing, health care
      - Minimum Wage/ Labour Protection
    - - Financial accountability
  - - - Revenue
        
        Tax
        
        IT,GST, Corporate,Customs, Excise,Corporate
        
        Non-Tax
        
        Dividends, interest receipts, fees, fines
      - Capital
        
        Borrowings
        
        Market Loans, External Loans
        
        Other Receipts
        
        Disinvestment, recovery of loans
    - - Revenue
        
        Salaries,pensions,subsidies,int payments,Grants
      - Capital
        
        Roads,bridges,defense capital,loans to states
  - - - Total Revenue Expenditure-Total Revenue Receipts
    - - Total Expenditure-Total Revenue (excluding borrowings)
    - - Fiscal Deficit-Net interest payments on debt
    - - Revenue Deficit-Net Grants for Capital creation
  - - - External Grants
      - External Aids
        
        IMF 1990-91
      - External Borrowing
      - Internal Borrowing
      - Printing currency
        
        Increases inflation
        
        Upward revision in wages and salaries
    - - Increased interest payments
      - Inflationary pressures
      - Crowding out effect
      - Credit rating downgraded
    - - Economic stimulus
        
        Post COVID-19
      - Infra Development
        
        DFC, Expressways
      - Emergency Response
        
        1960s war and drought
      - Accelerate Growth
        
        Post 2008 slowdown
      - Job creation
      - Social welfare programs
    - - Documents mandated
        
        Medium term Fiscal Policy Statement
        
        Fiscal Policy Strategy Statement
        
        Macroeconomic Framework Strategy
      - Objectives
        
        Reduce Fiscal Deficits
        
        Macroeconomic stability
        
        Intergenerational equity
        
        Transparency and accountability
        
        Control central govt debt
        
        Medium term fiscal policy planning
    - - State Performance Post Pandemic
        
        Improved Tax collection
        
        Tax buoyancy 1.4 (2021-25)
        
        Increased Capex
        
        3.1% of GDP in 2024-25, 2.4% in 2021-22
        
        Revenue expenditure rising
        
        Increased to 14.5% of GDP from 13.5%
        
        Debt to GDP falling
        
        At 28.5% 2025 (still higher than pre-pandemic)
        
        Fiscal Discipline
        
        Rising from 2.9% to 3.2% from FY 24 to 25
      - Concerns on State Budgets
        
        Rising subsidy burden
        
        Lax revenue generation
        
        Increasing Off budget liabilities
      - RBI Recommendations
        
        Debt consolidation
        
        Expenditure efficiency
        
        Revenue generation
        
        Subsidy rationalization
- - - - Merits
        
        Economic and Social Balance
        
        Productivity
        
        Certainity
        
        Wealth Redistribution
        
        Inflation Control
      - Issues
        
        Tax evasion and avoidance
        
        HNI underreport income
        
        Need for Rationalization
        
        Outdated exemptions and structures
        
        Obsolete IT Act
        
        Corporate Tax disparities
        
        Higher than most OECD countries
        
        Cross-border tax challenges
        
        Requrement of physical presence erodes tax base
        
        Narrow tax base
        
        Only 10.4 Crore individuals pay iT
      - Govt initiatives
        
        Vivad se Vishwas
        
        Reducing existing legal disputes and cost of litigatio
        
        E Sahyog
        
        Online filing of returns
        
        Place of Effective Management (PoEM)
        
        To determine residency of foreign companies
        
        Operation Clean Money
        
        Data analytics for tax compliance
        
        Encouraging Digital Transactions ans Formalization
        
        Reduce unaccounted transactions
        
        Reduced Tax Rate
        
        Concessional rate
        
        Monetary Threshold Raised for ITAT
        
        To reduce litigation
      - Taxation on Virtual Assets
        
        Proposed Taxation
        
        30% tax on transfer of Virtual Digital Assets
        
        1% TDS
        
        Significance
        
        Reduced volatility
        
        Regulation of Digital Assets
        
        Revenue for Govt
        
        Concerns
        
        Broad definition
        
        Financial Instability
    - - Merits
        
        Easy Collection
        
        Promotes Savings
        
        Hard to evade
        
        Wider Base
        
        Regulatory Tool
        
        Boosts Growth
      - Issues
        
        Regressive
        
        Inflationary
        
        Complex Compliance
        
        Reduced Consumption
        
        Cascade Risk
      - Government Initiatives
        
        GST Act
        
        GST Appellate Tribunal (GSTAT)
        
        Turant Customs
        
        Faceless assessment of consignments
      - GST
        
        Key Aspects
        
        Multiple Tax Slabs
        
        Destination Based Tax
        
        Tax where consumption occurs
        
        Input Tax Credit
        
        Threshold Exceptions
        
        Turnover below Rs 40 L (goods), Rs 20 L (services)
        
        Composition Scheme
        
        Small tax payers to pay concessional rates
        
        Faceless compliance
        
        E-invoicing & E-way bills
        
        Special Rates and Exemption
        
        Ex: 0% for basic foods, 28% for luxury goods
        
        Non inclusion of petroleum products
        
        Reasons: GST (Compensation to States) Act, 2017
        
        Assured Revenue Protection
        
        14% Growth Gurantee
        
        Compensation Cess Mechanism
        
        Fiscal Federalism Strengthening
  - - - Huge Tax loss
        
        India annual tax loss USD 10 Billion
      - Reducing Tax Loss
      - Loophole in Current System
      - Uniformity
    - - Reduction of Corporate tax to 22%
      - It is to benefit from 15% GMCT
  - - - Elimination of Double Taxation
        
        Exemption Method
        
        Tax Credit Method
      - Reduced Tax Rate
      - Prevention of Fiscal Evasion
      - Dispute Resolution Mechanisms
      - Concept of Permanent Establishment
      - Residency status of taxpayer
    - - Broad network
        
        Signed with over 90 countries
      - Renegotiations for Agreements
        
        India-Mauritius DTAA (1983)
      - Incorporating anti-abuse provisions
      - Adoption of Multilateral Instrument
        
        BEPS
      - Improving Dispute Resolution
        
        Inclusion of Mutual Agreement Procedures
  - - - Profit Shifting
      - Tax Base Erosion
      - Exploiting loop holes
        
        Treaty shopping
      - Transfer pricing manipulation
      - Tax Treaty abuse
    - - Realign taxation with substance
      - Increase transparency
      - Increase coherence
    - - Adoption of BEPS Action Plan
      - Equalisation Levy
      - Tightened Transfer Pricing regulations
      - Multilateral instrument to prevent treaty abuse
      - Domestic Anti-avoidance rules
- - - - Agri, irrigation, power projects
    - - Industrialisation, Heavy industries
    - - Agri, balance regional development
    - - Plan Holiday
    - - Growth with stability, self reliance
    - - Poverty alleviation, self-reliance
    - - Garibi Hatao
    - - Growth, modernisation, self-reliance, social justice
    - - Agri and rural activities
    - - High Growth, Basic minimum services
    - - Doubling per capita income ,Agri PMF
    - - Inclusive Growth
    - - Growth, Agri, Industry, Energy, Water,R&D
    - - Employment, social transformation
  - - - Shared Vision
      - Planning
      - Economic Growth
      - Federalism
      - Monitoring
      - Policy Frameworks
      - Capacity Building
    - - 15 year vision document
      - Three year action plan
      - Seven year agenda
    - - Limited Financial Powers
      - Advisory role
      - Poor tech integration
      - Data concerns
      - Coordination issues
      - Resource limitations
  - - - Demographic Dividend
      - Trade
      - Infrastructure
      - Entrepreneurship and Startup
- - - - Challenges
        
        Bilateral Investment Treaties (BITs)
        
        Slow domestic dispute resolution system
        
        Low regional integration
        
        Intra SAARC trade only 6% of total trade
        
        Weak Global Supply Chain integration
        
        Service Export Constraints
        
        India faces restrictions under GATS
        
        High Logistics costs
        
        13-14%
        
        EU's CBAM Impact (2026)
        
        US Tariff impact (50%)
      - Difficulties in Promoting Exports
        
        Low market penetration in High income countries
        
        Protectionism
        
        Diversification vs Specialization
        
        High Logistics Cost
        
        Poor Innovation
        
        Dominance of Dwarf Firms in MSMEs
      - Export Promotion Schemes
        
        Export Promotion Mission (FY2025-31)
        
        RoDTEP
        
        Trade Infrastructure for Exports Scheme (TIES)
        
        Market Access Initiative (MAI)
        
        Interest Equalisations Scheme (IES)
        
        Credit Gurantee Scheme for Exporters (CGSE)
      - Key Provisions
        
        Process Re-Engineering and Automation
        
        Towns of Export Excellence
        
        Ex: Faridabad, Mirzapur, Varanasi
        
        Recognition of Exporters
        
        Districts as Export Hubs (DEH)
      - Objective
        
        To take India's exports to $2T by 2030
    - - Present Status
        
        Refer comment in Prahaar PDF
      - Need
        
        Bypass Economic Sanctions
        
        Internationalisation of Rupee
        
        Less volatility in Exchange Rate
        
        Save Forex Reserves
  - - - Importance of Forex Reserves
        
        Cushion against Forex Market Volatility
        
        Fulfilling external obligations
        
        Appreciation in Rupee
        
        Crisis Management
        
        BoP Crisis
        
        Confidence in Market
    - - Measures to boost
        
        Policy stability and EoDB
        
        Fast Track land & Envi Clearance
        
        Strengthen Infra and Logistics
        
        Promote Sectoral Reforms
        
        Defense, Space, Retail, Insurance
        
        Robust Dispute Resolution System
  - - - High Crude Oil Prices
        
        India imports 85% of its crude
      - Tight monetary policy in US
      - Large capital outflows
        
        FPIs withdrew Rs 1.37 Trillion rupees in early 2025
      - Widening CAD
      - Inflationary Pressures
        
        Food and fuel sectors
    - - Positive
        
        Competitive Exports
        
        Gain for IT Sector
        
        Boost to tourism
        
        Greater Remittances
      - Negative
        
        Current Account Deficit
        
        Import Bill
        
        Discourages Foreign investment
        
        Higher Inflation
    - - Import substitution
      - Managing Depriciation
      - Boosting Confidence
      - Internationalisation of Rupee
  - - - Reduced forex requirements
      - Reduced vulnerability
      - India's Global Stature
      - Boost to Trade and Investment
      - Competitive Exports
      - Lower Transaction Costs
    - - Partial Capital Account Convertability
      - Regulatory Challenges
      - Exchange Rate Volatility
      - Lower Demand for Indian Products
      - Monetary Policy ineffective
    - - FEMA 1999
      - Liberalisation of Capital Account
      - Offshore Rupee Markets
      - Currency Swap Agreements
      - Rupee-Denominated Bonds
      - Bilateral Trade Agreements
      - Special Rupee Vostro Account System
- - - - Price Stability
      - Economic Growth
      - Financial Stability
      - External Sector Balance
      - Development Objectives
    - - Liquidity Adjustment Facility (LAF)
      - Standing Deposit Facility (SDF)
      - Marginal Standing Facility
      - Repo Rate
      - Reverse Repo Rate
      - CRR
      - SLR
      - OMO
      - Bank Rate
    - - Neutral
      - Hawkish
      - Calibrated Tightening
    - - Limited Role in Development
      - Ineffective Inflation Control
        
        Lacks integration with Fiscal, forex policies
      - Weak Banking Habits
        
        Preference of cash
      - Underdeveloped Money Market
      - Black Money
      - Non-Monetary Factors Ignored
        
        Deficit financing, forex pressures
      - Tool Constraints
    - - Food Inflation
        
        Causes
        
        Supply side constraints
        
        Climate Related Shocks
        
        High input costs
        
        Structural dependence on few crops
        
        Rising demand
        
        Inefficient supply chains
        
        Effectiveness of Monetary Policy
        
        Limited effectiveness for supply side inflation
        
        Indirect impact on other sectors
  - - - Poor asset quality
        
        Bad loans or NPA
      - Poor Capital Adequacy
      - Unhedged Forex Exposure
      - Employee and Technology
      - Not enough Rural branches
    - - Structural
        
        Big Banks
        
        Narasimham committee: 3-4 large banks
        
        Differentiated Banks
        
        Customer specific niche
        
        System Reforms
        
        Adoption of Basel III, Asset Quality Review (AQR)
      - Technological
        
        RBI Innovation Hub
        
        Fintech innovations
        
        Neo Banks
        
        To expand access
        
        Interoperable Internet Banking
      - Govt and RBI Measures
        
        Governance and Transparency
        
        Banks Board Bureau helps reforms in PSBs
        
        Bank Empowerment
        
        Suggests diversified loan portfolios
        
        Priority Sector Lending
    - - Significance
        
        Digital Payments on the rise
        
        Improved credit creation
        
        Economic Growth
        
        Funds to SMEs for exchange of invoices
        
        Innovations
        
        P2P Financing
      - Subhash Chandra Committee recos
        
        Supervision Technology Development
        
        Customer Protection LEgal Framework
        
        Regulation Technology Development
        
        Marketplace model for debt financing
      - Digital Lending Ecosystem
        
        Existing Legal Framework
        
        Banking Regulation (BR) Act, 1949
        
        RBI Act, 1934
        
        Companies Act, 2013
        
        Chit Funds Act, 1982
        
        Models
        
        Balance sheet lending (BSL) Model
        
        Marketplace lending (MPL) Model
        
        P2P Lending Platforms
        
        Fintech companies
        
        Loan extentions through NBFCs
        
        Reasons for regulating
        
        Increase in illegal apps
        
        Rupee Day, Real Rupee
        
        Consumer protection concerns
        
        Financial Sector risks
        
        Verification and credit appraisal
        
        Data breach and leaks
    - - Challenges
        
        Technical Hurdles
        
        Interoperability, scalability
        
        Financial Literacy
        
        cybersecurity risks
        
        privacy concerns
      - Benefits
        
        Reduced cost of cash management
        
        Financial inclusion
        
        Digitization of currency
        
        Promotes innovation
        
        Improves cross border payments
        
        Ensures transparency
      - Features
        
        Sovereign Currency
        
        Liability on Central Bank
        
        Legal Tender
        
        Freely convertible against cash
        
        Bank account neccessary
    - - Significance
        
        Economic Growth
        
        Poverty Alleviation
        
        DBT, MGNREGA
        
        Reduced leakage
        
        Timely delivery of services
        
        Women empowerment
        
        Promotion of Digital Economy
      - Steps Taken
        
        Jan Dhan Yojana
        
        Impact
        
        Prevent Leakage
        
        Financial Inclusion
        
        Formalization of Financial System
        
        Challenges
        
        Financial Illiteracy
        
        Connectivity ISsues
        
        Problems with Tech
        
        Digital Banking Units (DBU)
        
        RBI's Financial Inclusion Index
        
        Initiatives by RBI & NABARD
        
        Ex: Kisan Credit Card
        
        Digital Payments
        
        UPI by NPCI
        
        Project Financial Literacy
        
        By RBI
      - Challenges
        
        Issues wrt Digitization
        
        Digital Divide
        
        Oxfam: 31% of rural India uses internet. 67% Urban
        
        Digital Literacy
        
        20% of Indians (>5yrs) have basic digital literacy
        
        Digital Infrastructure
        
        NSO: 15% rural households connected to Internet
        
        Lack of Access to Banking
        
        Lack of Identification Documents
        
        Gender Gap
        
        1.1B of 2B unbanked individuals are Women
        
        Rural-Urban Divide
        
        Only 14.6 banks per 1L population
- - - - Growth drivers
        
        Pandemic Effect
        
        Digital Push
        
        Category Expansion
        
        Rural Reach
        
        New Players
      - Govt initiatives
        
        One District One Product
        
        GeM
        
        Tribesindia.com portal
        
        Open Network for Digital Commerce (ONDC)
        
        National e-commerce Policy
        
        Target $200-300 Bill exports by 2030
    - - Challenges
        
        Environmental Concerns
        
        Plastic waste generation in fragile ecosystems
        
        Poor Infra
        
        Arunachal lacks connectivity
        
        Safety and Hygiene
        
        For women
        
        Underutilized Heritage
        
        Khajuraho and Hampi lack promotion
        
        Seasonal Crowding
        
        Over tourism in Shimla and Manali
        
        Skilled Workforce shortage
      - Key Targets
        
        Reach $230 Billion tourism related GDP contribution by 2030
        
        Build Brand India for health and wellness travel
        
        To make travel to India travel friendly
    - - Govt initiatives
        
        E-Medical Visa for 156 countries
        
        Ayush Visa
        
        Heal in India initiative
        
        Indiahealthtourism.com
    - - Growth drivers
        
        Digital India
        
        Digital talent abundance
        
        Hybrid work models for flexibility for employees
      - Indian BPO Promotion scheme
        
        Part of Digital India Programme
        
        Under MeITY
        
        Software Technology Parks of India is implementing agency
    - - Key Challenges
        
        Low Internet penetration
        
        Cut throat competition
        
        High spectrum usage fee
        
        Available spectrum less than China and EU
        
        Cost of investment in 5G infra
      - Govt initiatives
        
        National Digital Communication Policy 2018
        
        Provide universal broadband connectivity to every citizen at 50 Mbps
        
        Telecom Technology Fund
        
        Partnerships b/w industry, academia, research inst, startups
        
        PLI for Telecom manufacturing
        
        BharatNet Project
        
        Rural broadband connectivity programme
        
        PM WANI
        
        WiFi hotspots through Public Data Offices (PDOs)
        
        5G High-Level Forum