The Analyst 29th August 2024 Current Affairs Today | Vajiram and Ravi Daily Newspaper Analysis

Vajiram and Ravi Official・2 minutes read

The Union Cabinet approved 12 new industrial cities to boost domestic manufacturing with a significant increase in industrial growth in fiscal year 2023, showcasing challenges and opportunities in the manufacturing sector. Efforts to address plastic pollution and transition Indian industries to a carbon market model are crucial for environmental conservation and energy efficiency, with a focus on the Guru Granth Sahib and a joint Russia-India plan for Emergency Management cooperation.

Insights

  • The manufacturing sector in India faces challenges such as slow growth in core industries, high input costs, and low capacity utilization, impacting the sector's overall performance and competitiveness.
  • Initiatives like the Zero Defect Zero Effect policy, the Anusandhan National Research Foundation, and Free Trade Agreements aim to enhance product quality, incentivize innovation, and boost demand for Indian products, showcasing government efforts to improve the manufacturing sector's performance and global competitiveness.

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Recent questions

  • What is the significance of the manufacturing sector in India?

    The manufacturing sector in India contributes 17.7% to the GDP, employs 27 million workers, and accounts for 14% of the total gross value addition at current prices. It plays a crucial role in the country's economic growth and development.

  • What are the challenges faced by the manufacturing sector in India?

    The manufacturing sector in India faces challenges such as slow growth in core industries, low capacity utilization at 68%, high input costs, logistic costs 14% higher than the world average, and regulatory hurdles like tariffs and labor laws. Additionally, there is a shortage of skilled workers and structural challenges like low propensity to consume due to high non-negotiable expenditures.

  • How does India address plastic pollution?

    India addresses plastic pollution by banning single-use plastics, promoting biodegradable alternatives, and implementing initiatives like micro and nanoplastic removal projects. The country has also adopted stringent regulations and the Plastic Waste Management Rules of 2021, which ban 19 categories of single-use plastics and promote extended producer responsibility.

  • What measures are taken to enhance energy efficiency in industries in India?

    India enhances energy efficiency in industries through schemes like the Perform Achieve and Trade scheme, which aims to reduce energy consumption in energy-intensive industries through market-based mechanisms. Designated consumers are provided energy-saving targets, and energy saving certificates are issued by the Bureau of Energy Efficiency. Industries failing to meet targets can purchase energy saving certificates from others.

  • What steps has India taken towards a carbon emission trading scheme?

    India has taken steps towards a carbon emission trading scheme under the Energy Conservation Act of 2022. The transition to a carbon market model is crucial for environmental conservation, and the scheme involves setting caps on emissions and trading emission reduction units. This initiative aims to limit greenhouse gas emissions and promote sustainable practices in industries.

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Summary

00:00

Boosting Manufacturing Sector Amid Global Challenges

  • The Union Cabinet approved 12 new industrial cities in 10 states with an estimated investment of 2.62 CR rupees to boost domestic manufacturing.
  • Industrial growth in fiscal year 2023 was significant, led by manufacturing and construction sectors, with a 25% increase in industrial gross value addition.
  • Manufacturing sector's share in total gross value addition is 14% at current prices and 17.7% at constant prices, contributing 17.7% to GDP and employing 27 million workers.
  • Manufacturing sector exports reached $447 billion in fiscal year 23, with an index of industrial production at 143.5, showing a 43.5% growth from the base year of 2011-12.
  • Challenges in the manufacturing sector include slow growth in core industries, low capacity utilization at 68%, and 35% output share not fully utilized due to backward and forward linkages.
  • Average annual growth rate of manufacturing sector in the last decade is 5.2%, compared to China's 14%, with sectors like Metal Products and Food Products showing negative growth.
  • Challenges faced by manufacturing companies include high input costs, logistic cost 14% higher than the world average, and regulatory hurdles like tariffs and labor laws.
  • Structural challenges like low propensity to consume due to high non-negotiable expenditures, shortage of skilled workers, and digital and skill divide hamper manufacturing capacity.
  • Fierce competition from emerging economies like Vietnam and China in textile exports, geopolitical tensions causing supply chain disruptions, and increased inflation due to oil price hikes impact the manufacturing sector.
  • Supply chain disruptions lead to imported inflation, affecting product costs and demand, potentially resulting in job layoffs, increased unemployment, reduced consumer spending, and further economic challenges.

17:12

Government initiatives combat plastic pollution and boost innovation.

  • The lack of demand for products leads to a cycle of unemployment, low demand, low manufacturing, and further unemployment.
  • Companies could have invested in research and development to create high-quality products at lower costs.
  • The economic survey of 2024 reveals minimal spending on research and development, particularly in industrial sectors like pharmaceuticals and textiles.
  • The government simplified the patent acquisition process under the Patent Rules 2024, leading to a 17-fold increase in patent grants.
  • The government established the Anusandhan National Research Foundation to incentivize innovative product creation.
  • More than 13,000 startups have been registered under the Department for Promotion of Industry and Internal Trade, fostering a startup culture.
  • The government's Zero Defect Zero Effect policy aims to enhance the quality of products in the MSME sector.
  • Free Trade Agreements have been signed with various countries to boost demand for Indian products.
  • The government's Pradhan Mantri Kaushal Vikas Yojana 4.0 focuses on preparing the workforce for Industry 4.0 demands.
  • India ranks 14th in the Global Innovation Index and has significantly increased formal credit to industries.
  • The presence of harmful microplastics in personal care products poses environmental and health concerns.
  • Microplastics, derived from non-biodegradable plastics, can have severe health impacts and harm aquatic life.
  • The government has taken steps to address plastic pollution, including banning single-use plastics and promoting biodegradable alternatives.
  • The United Nations Environment Assembly adopted a resolution to end plastic pollution, with ongoing negotiations for a plastic treaty.
  • India's Plastic Waste Management Rules of 2021 ban 19 categories of single-use plastics and promote extended producer responsibility.
  • Initiatives like micro and nanoplastic removal projects and stringent regulations aim to curb plastic pollution.
  • Innovations like hydrogels designed to remove microplastics from water offer potential solutions to plastic pollution.
  • Transitioning Indian industries to a carbon market model is crucial for environmental conservation and government intervention.
  • The Perform Achieve and Trade scheme aims to reduce energy consumption in energy-intensive industries through market-based mechanisms.
  • Designated consumers are provided energy-saving targets based on a gate-to-gate approach, promoting energy efficiency in industries.

33:38

"Certified Energy Savings: Trading for Efficiency"

  • Accredited energy auditors certify energy savings targets achieved by individuals.
  • Energy saving certificates are issued by the Bureau of Energy Efficiency.
  • Industries failing to meet targets can purchase energy saving certificates from others.
  • Certificates can be traded on platforms like Indian Energy Exchange.
  • Scheme has led to significant energy savings and reduced carbon emissions.
  • Skill development and investments in energy-efficient technologies have been promoted.
  • Imbalance in energy efficiency exists, with some industries being considered efficient despite high energy use.
  • Transition to a carbon emission trading scheme is recommended to limit greenhouse gas emissions.
  • Carbon emission trading involves setting caps on emissions and trading emission reduction units.
  • India has taken steps towards a carbon credit trading scheme under the Energy Conservation Act of 2022.

49:49

"Guru Granth Sahib, Chandipura Virus, Emercom Agreement"

  • The Guru Granth Sahib is the holy scripture of Sikhism, considered the final and eternal Guru after the 10 human Gurus, with the first being Guru Nanak. The first compilation, known as the Adi Granth, was done by Guru Arjan Dev, installed in the Golden Temple in 1604 by Baba Buddha, and later affirmed by Guru Gobind Singh.
  • A joint Russia-India plan for Emergency Management cooperation was signed in Moscow, focusing on space monitoring technologies, response to large-scale disasters, and fire and rescue operation training. The agreement, called Emercom, will see the next meeting in India in 2025 or 2026.
  • The Chandipura virus, transmitted by sandflies, affects the central nervous system, primarily in children under 15 years old. Originating in Chandipura village in Maharashtra, it has a 58% fatality rate, progressing rapidly from flu-like symptoms to coma and death. No anti-retroviral therapy or vaccine exists for this virus.
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