Economic Growth and reforms
- In the post-independence economic history of our country, 1991 stands out as a watershed year.
- This was the year in which the economy was faced with a severe balance of payments crisis.
- In response, we launched a wide-ranging economic programme, not just to restore the balance of payments but to reform, restructure and modernise the economy.
- the crisis was converted into an opportunity to bring about fundamental changes in the approach and conduct of economic policy.
- A near tragedy was averted and a new path was laid out before the country.
- The break with the past came in three important ways: in dismantling the vast network of licences, controls and permits that dominated the economic system;
- in redesigning the role of the state and allowing the private sector a larger space to operate within,
- and in abandoning the inward looking foreign trade policy and getting integrated with the world economy and trade.
- There is a common thread running through the various measures introduced since 1991.
- The objective has been to improve the productivity and efficiency of the system by creating a more competitive environment.
- Thus, barriers to entry and growth were removed.
- The opening up of the external sector, which included liberal trade policy, market determined exchange rate and a liberal flow of external resources, has greatly strengthened the external sector.
- Besides growth, the other major objective of economic policy is to reduce the number of people living below the poverty line
- The post-reform period up to 2011-12 did see a significant reduction in poverty ratio because of faster growth supplemented by appropriate poverty reduction programmes such as the Rural Employment Guarantee Scheme and the Extended Food Security Scheme.
- With the decline in growth rate since then and with a negative growth in 2020-21, this trend must have reversed, i.e. the poverty rate may have increased.
- Reforms supplemented by a careful nurturing of the investment climate are needed to spur growth again.
Steps
- Policymakers should identify the sectors which need reforms in terms of creating a competitive environment and improving the performance efficiency.
- From this angle, we need to take a relook at the financial system, power sector and governance. Centre and States must be joint partners in this effort.
- Second, in terms of government performance, there should be increased focus on social sectors such as health and education. In terms of the provision of services, the emphasis must be not just on quantitative expansion but also quality
India’s approach to Maritime environment
- Indian PM described the oceans as a common heritage for humankind and a lifeline for the future of the planet.
- In urging the global community to develop a common framework to deal with contemporary challenges, including maritime disputes and natural disasters, he outlined a far-sighted vision rooted in India’s culture, history and geography
- linked free and open trade to India’s civilisational ethos.
- Reiterated the relevance of SAGAR (Security And Growth For All In The Region).
- He urged the international community to develop a cooperative and inclusive framework for maritime security, so essential for unimpeded trade and commerce.
- Ninety per cent of global trade is conducted on the high seas, for the simple reason that it continues to be the most cost effective mode of transport.
- Disruption of sea lanes of communication has global repercussions.
- The blockage in the Suez Canal earlier this year interrupted the flow of trade worth billions of dollars.
- The Prime Minister advocated peaceful settlement of maritime disputes on the basis of international law.
- This idea is rooted in India’s values of peace and non-violence. India’s acceptance of the award by the Permanent Court of Arbitration in 2014 paved the way for India and Bangladesh to put aside their maritime dispute and forge even closer ties.
- Today, natural disasters and maritime threats posed by nonstate actors have grown exponentially.
- Indian PM called upon the global community to rally together to deal effectively with the ravages of cyclones, tsunami and maritime pollution.
- India’s role as ‘first responder’ in the Indian Ocean, whether in thwarting piracy or providing relief
- The election, on August 5, of the Director General of Indian Coast Guard as the executive director of the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) Information Sharing Centre, Singapore. is an endorsement of India’s contributions.
- India now has white shipping agreements with several countries.
- The Indian Navy’s state of-the-art Information Fusion Centre-Indian Ocean Region (IFCIOR) based in Gurugram hosts officers from the United States, Japan, France, Australia and the United Kingdom.
- oceans remain our lifeline. Yet, they have been overwhelmed by plastic waste which chokes all forms of marine life.
- This, in turn, poisons the entire food chain and imperils the lives of millions.
- Development of connectivity and infrastructure were also outlined as a major priority.
- There are heightened concerns today over China’s Belt and Road Initiative (BRI).
- India stands for openness and transparency in the execution of projects, based on local priorities, with in-built fiscal viability and environmental sustainability.
- The U.S., Japan and Australia are also promoting better standards for global infrastructure through the Blue Dot Network
- More relevantly, India emphasises the importance of the United Nations Convention on the Law of the Sea as the legal framework governing all maritime activity.
- India’s natural interests stretch across both the Indian and Pacific Oceans as reflected in its inclusive Indo-Pacific vision
Taliban Surge
- Taliban’s supreme leader Hibatullah Akhundzada said the Taliban are on the verge of establishing a “pure Islamic system” in Afghanistan.
- It is clear from his words and the military campaigns that the Taliban want the whole of Afghanistan under their command
- balance of power in the battlefield was altered due to withdrawal of the U.S.-led international forces.
- While the U.S.-Taliban agreement in February 2020 legitimised the jihadists, the American withdrawal gave them a sense of victory
- the U.S. withdrawal has left the Afghan government, internally divided and lacking support in rural areas, devoid of its most critical advantage in the war — air support.
- The Taliban, like in the 1990s, promise stability and security. But the tragedy is that if they take Kabul, Afghanistan’s nearly 40 million population would be subjected, once again, to one of the most barbaric forms of religious totalitarianism.
New scrappage policy
- Vehicle Scrappage Policy will play a big role in the modernization of the vehicular population in the country, removing unfit vehicles from the roads in a scientific manner,
- This policy will follow the principle Reuse, Recycle and Recovery will also promote the country’s self-reliance in the auto sector and in the metal sector.
- The policy will bring in a fresh investment of more than ₹10 thousand crores and will create thousands of jobs,”
- The policy recommends “fitness tests” for private and commercial vehicles that are more than 20 and 15 years old respectively. In the absence of a “fitness certificate,” registration of such vehicles will be automatically cancelled.
- It further recommends mandatory scrapping of all government vehicles that are more than 15 years old but is applicable only on four-wheelers.
- The fitness tests will be done at government-certified fitness centres, appointments for which can be made online. Test reports will be generated in online mode. Also, scrappage can be done anywhere in the country, regardless of the place of vehicle registration.
- The scheme also proposes several incentives which the owners can avail after being given a scrapping certificate. This includes the scrap value for the old vehicle, which is expected to be around 5-6% of the price of a new vehicle.
- Additionally, a road tax rebate of up to 25% for new personal vehicles, and 15% for new commercial vehicles, as well as a 5% discount against the scrapping certificate, have also been proposed under the policy.
- The registration fees for the purchase of a new vehicle may also be waived upon getting the old vehicle scrapped.
- The policy will bring investments worth more than ₹10,000 crore and create up to 50,000 jobs
- A certificate will be given on scrapping the old vehicle. Whoever has this certificate will not have to pay any money for registration on the purchase of a new vehicle.
- Vehicles will be scientifically tested through authorized, automated testing centres. Unfit vehicles will be scrapped scientifically.
- The maintenance cost, repair cost, fuel efficiency of the old vehicle will also be saved in this.
- The policy will play a key role in ‘Waste to Wealth’ programme,
- it will also help in reducing pollution in our cities.