Sept 16th 2024 Current Affairs

Index:

1. Low & High-Skilled Jobs: Gap Rising as Manufacturing Stagnation Continues

  1. Current Economic Trends:
  • India’s economy has been primarily driven by the services sector (IT, Banking, Finance).
  • Manufacturing sector stagnation: Key in traditional industries like apparel and footwear; growth remains at 14% compared to the targeted 25%.
  • This stagnation has exacerbated the divide between high-skilled and low-skilled jobs.

 

  1. Job Creation & Employment Trends:
  • Export-led jobs in India are in decline (World Bank Report):
    • Direct employment linked to exports fell from 9.4% in 2015 to 6.5% in 2020.
  • High-skilled jobs are increasing, especially in areas like data analytics and software development due to the rise of Global Capability Centres (GCCs).
  • Low-skill sectors, such as textiles and apparel, are suffering, losing ground to countries like Bangladesh and Vietnam.
  • Leading companies in IT (e.g., TCS, Infosys) report a drop in their workforce, reducing more than 160,000 entry-level engineers by 2024.

 

  1. Declining Labour-Intensive Jobs:
  • Labour-intensive sectors such as textiles, leather, and footwear are losing market share globally.
  • Despite efforts such as the PLI (Production Linked Incentive) scheme and Mega Integrated Textile Regions and Apparel (MITRA) Parks, India struggles in competing with Bangladesh, Vietnam, and others.

 

  1. Declining Participation in Global Value Chains (GVCs):
  • India’s share of labour-intensive exports in GVCs has dropped from 2.5% in 2000 to 1.5% in 2020.
  • The World Bank points out that India’s performance in GVCs has led to a reduction in manufacturing exports and participation, especially in lower-end sectors like textiles.
  • India’s integration in GVCs is crucial for job creation and competitiveness.

 

  1. Global Capability Centres (GCCs):
  • GCCs are increasing, particularly in sectors like finance, IT, and analytics.
  • These centres help India compete globally by leveraging advanced skills and technological development.
  • India hosts 1,600 GCCs, responsible for employing a large number of high-skilled workers.
  1. Government Initiatives:
  • Key schemes to boost employment and improve the competitiveness of Indian manufacturing:
    • PLI Scheme for textiles.
    • MITRA Parks and efforts to promote large-scale manufacturing.
    • National Industrial Corridor Development Programme (NICDP) to foster job creation.

 

  1. Key Challenges:
  • India’s slow adoption of labour-intensive manufacturing.
  • Mismatch in skill levels: Rising demand for high-skilled jobs, while low-skill sectors see job losses.

Global competition from countries with lower labour costs.

2. Effective Oil Import Duty 27.5%, Farmers Will Benefit

  1. Increase in Oil Import Duty:
  • Edible oil import duty has been increased from zero to 20%, resulting in a 5% effective duty on imported edible oils (including refined oils).
  • This move is expected to benefit domestic farmers, particularly those growing soybean and mustard, by ensuring better prices for their produce.

 

  1. Impact on Oilseeds Farming:
  • The increase in duty is intended to encourage more oilseed production in the Rabi season, ensuring good prices for soybean, mustard, and other related crops.
  • Sowing of oilseeds will increase, benefiting soya bean and mustard farmers.
  • More soya bean production is expected, benefiting both farmers and consumers.

 

  1. Removal of Export Duty on Basmati Rice:
  • The minimum export duty on Basmati rice has been removed, which will lead to an increase in exports.
  • This move will help Basmati rice producers and boost their income through better global market access.

 

  1. Onion Price Control:
  • The government has reduced export duty on onions from 40% to 20%. This is expected to ensure fair prices for onion farmers.
  • Retail sale of onions is being regulated by the National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED) at a subsidized price of ₹35/kg through outlets, mobile vans, and e-commerce platforms.
  • This strategy has expanded to major cities such as Delhi, Mumbai, Hyderabad, Bengaluru, Kolkata, and other cities, to control rising onion prices.

 

  1. Government’s Approach to Farmers’ Welfare:
  • The initiatives to increase oil import duty and remove the export duty on Basmati rice demonstrate the government’s commitment to farmers’ welfare.
  • The move will increase domestic production of oilseeds and ensure better market prices for agricultural products.
  • Measures such as wholesale disposal of onions and bulk sale strategies help regulate consumer prices and avoid shortages.

 

  1. Buffer Stock & Future Prospects:
  • The government has maintained a buffer stock of 47 lakh tonnes of onions, which will be utilized to prevent a surge in prices.

Wholesale transport via rail and road aims to bring logistical efficiency and reduce retail prices across regions.

3. Post-Glacial Ecosystems Could Help Slow Down Climate Change

  1. Study Overview:
  • A decade-long global study titled “The development of terrestrial ecosystems emerging after glacier retreat” highlights the potential role of post-glacial ecosystems in mitigating climate change.
  • Published in the journal Nature, it explores how ecosystems that develop after glacier retreat can influence climate patterns.

 

  1. Key Findings:
  • Glacier retreat is one of the most evident signs of climate change, often accelerating the process by reducing surface reflectivity (albedo effect) and releasing stored carbon.
  • However, post-glacial ecosystems could help slow climate change by boosting biogeochemical processes that can mitigate climate effects.

 

  1. Ecological Changes Post-Glacier Retreat:
  • Microorganisms such as bacteria, protists, and algae colonize barren landscapes first, enriching the soil and preparing it for larger plant species.
  • Within a decade of glacier retreat, lichens, mosses, and grass begin to establish, creating new habitats for larger plant and animal species.
  • These ecosystems help absorb carbon and restore ecological balance.

 

  1. Study Details:
  • The study involved the analysis of 1,200 soil samples from nearly 50 glaciers
  • Indian scientists such as Pritam Chand from Central University of Punjab and Professor Milap Chand Sharma from Jawaharlal Nehru University (JNU) contributed by studying glaciers in the Indian Himalayas (Gangotri and Bara Shigri glaciers).
  • The research emphasizes the need for proper management of these emerging ecosystems to enhance their potential to slow down climate change.

 

  1. Importance of Proper Management:
  • With appropriate management, these ecosystems can enhance biogeochemical cycles, increase carbon sequestration, and create temporary habitats for various species.
  • Such management practices could lead to long-term benefits for climate change mitigation.

 

  1. Implications for Policy:
  • The study underscores the importance of protecting newly formed ecosystems post-glacier retreat as part of broader climate adaptation strategies.
  • This research can aid in global climate policy development and in the management of ecosystems in high-altitude regions affected by glacier retreat.

4. Why Commons Matter and the Role of Community in Their Governance

  1. Definition of Commons:
  • Commons refer to resources that are not owned by individuals but are shared by communities, such as forests, lakes, rivers, community lands, and water bodies.
  • Commons also include intangible resources, like languages, cultural practices, and even digital spaces.

 

  1. Governance of Commons:
  • The governance of commons can vary based on the resource type.
  • Urban commons: Managed by local bodies, such as municipalities, for resources like parks and lakes.
  • Rural commons: Require more community involvement to manage natural resources such as forests and water bodies.
  • Several forms of governance have evolved, including international agreements for shared global resources like oceans, polar regions, and outer space.
  • Example: The Paris Agreement involves climate actions as a way to preserve the global commons.

 

  1. Importance of Community Leadership:
  • Active community leadership is essential to prevent the overuse or destruction of commons.
  • Notable researcher Elinor Ostrom showed that local communities can successfully govern commons, provided they follow shared rules and practices.
  • The concept of the “Tragedy of the Commons”, proposed by Garrett Hardin, is avoided when communities take responsibility for commons governance.

 

  1. 2006 Forest Rights Act (FRA):
  • The Forest Rights Act (FRA) of 2006 is considered a good model for commons governance in India.
  • The Act gives community ownership rights to forest dwellers, allowing them to manage and use forest resources for their livelihood.
  • The FRA has improved forest management and empowered local communities by giving them legal authority to protect their resources.

 

  1. Challenges and Way Forward:
  • Despite the FRA, other commons such as pasture lands, water bodies, and urban commons remain under threat due to over-exploitation and a lack of effective governance.
  • There is a need for inclusive frameworks that involve local communities in decision-making and ensure the sustainability of commons.

 

  1. Policy Implications:
  • Policy frameworks need to encourage community participation in managing commons.
  • Localized and context-specific governance mechanisms are crucial for maintaining the well-being of commons.

Almost one-fourth of India’s landmass is estimated to be commons, impacting the livelihoods of over 350 million people.

5. Post-Glacial Ecosystems Could Help Slow Down Climate Change

  1. Study Overview:
  • A global study titled “The development of terrestrial ecosystems emerging after glacier retreat” highlights that post-glacial ecosystems could play a vital role in mitigating climate change.
  • Published in the journal Nature, the study is the result of a decade-long research involving the analysis of ecosystems that form after glaciers retreat.

 

  1. Impact of Glacier Retreat:
  • Glacier retreat is a visible sign of climate change, which may accelerate global warming by reducing surface reflectivity and releasing stored carbon.
  • However, the ecosystems that develop after glaciers retreat can help slow climate change by enhancing biogeochemical processes.

 

  1. Research Data & Findings:
  • The study analyzed 1,200 soil samples from around 50 glaciers worldwide, focusing on how ecosystems develop in these regions after glacier retreat.
  • Pritam Chand from Central University of Punjab and Professor Milap Chand Sharma from Jawaharlal Nehru University, Delhi, contributed to the study by examining glaciers in the Indian Himalayas (Gangotri and Bara Shigri glaciers).

 

  1. Ecological Processes Post-Glacier Retreat:
  • Microorganisms such as bacteria, protists, and algae are the first colonizers of the barren landscapes left behind after glaciers retreat, making minerals available for larger species.
  • Within a decade, hardy plants such as lichens, mosses, and grasses begin to establish, improving soil quality and paving the way for larger plant and animal life.

 

  1. Role of Proper Management:
  • With proper management, post-glacial ecosystems could provide temporary habitats for various species, helping stabilize the environment and contributing to climate change mitigation.
  • The research stresses the importance of understanding and managing these ecosystems to maximize their climate-related benefits.

 

  1. Conclusion & Implications:
  • This study offers important insights into how post-glacial ecosystems could become crucial components in the fight against climate change.

The findings provide a basis for policy recommendations that focus on the management and protection of these evolving ecosystems.

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