set out on the path to holistic learning and realize your upsc goals benefit from consistent and tailored assistance have your questions addressed promptly and ensure your preparation remains on track with unwavering learner Aid to empower aspirants in reaching their upsc goals vision is Delhi presents the GS Foundation course the course highlights include holistic current affairs coverage continuous mentoring and support system comprehensive syllabus coverage Tech enabled classroom and services enroll in the vision is Delhi GS Foundation course batches starting 9th February 1 p.m. 23rd February 900 a.m. 28th February 5:00 p.m. start on the path to success in the upsc civil services examination today [Music] [Music] [Music] welcome to the dynamic world of upsc where the journey unfolds across three critical stages freelance Mains and interview each stage Demands a deep understanding of current affairs shaping the nature of questions from factual analytical to opinion-based questions as we delve deeper into the upc's diverse syllabus a major hurdle aspirants face is keeping Pace with the evolving nature of current affairs this includes staying updated with changes such as policy shifts geopolitical developments environmental updates and more such dynamism along with an undefined syllabus and a vast array of resources makes mastering current affairs a formidable task for upsc aspirants to navigate these complexities we have introduced p 365 to revise analyze and master one-year current affairs for prelims 2024 in 6rs with its innovative design and structured approach PT 365 simplifies your preparation R PT 365 offers comprehensive current affairs classes that stand out for there interactive classes by highly experienced vision is faculty holistic coverage of one-ear current affairs for a strong strong Foundation which includes prelims relevant topics from the Hindu Indian Express pib Economic Times yoga economic survey budget Sansa TV Etc from April 2023 to April 2024 embrace the vast upsc syllabus with PD 365's targeted and thoro approach transforming it from a complex task into a pathway for achievement ready to begin register now at our website for any further queries reach out to us at these numbers or inquiry atate Vision is.in we're here to assist you on your journey to success good evening class this is a session on economic survey the government has done something and you know who has done it so this is not a full economic survey I hope you know this this is an interim type of a survey because there's an interim budget the expenses and the receipts up to the elections same thing about the survey not in detail information about what the government has done that will happen after the elections so when the full budget is presented we'll have the full economic survey this is just an economic survey that talks about the previous government performance not the government performance but what happened in the last one year but in a very concise format so now what the expectations are from this document what are you expecting what are we going to learn from this anything you want to read You' have come here for 3 hours at least steps the government have taken you already know that from the newspaper in a concise format anything else revision analysis see one of the things this document does not present any analysis so you'll not find why something happened what were the reasons there could be a short analysis but major analysis is not presented in this document even the economic survey does not talk about a lot of analysis it only presents the facts that this has happened economic survey when comes in two volumes the first volume talks about analysis of a lot of things if it is only one volume then they talk about the performance of the sector in last one year so the document is mostly about the performance in the last one year what has happened in the economy so this is not about analysis which you're going to find the two things which are important how you can use this document or why this is important from the perspective of first prelims this document is helpful for giving you certain information on now whenever we talk about the Indian economy and its performance whatever the government has done in all the sectors whether it is with respect to agriculture it is respect to investment in industry it is with respect to the government expenditure or with respect to what happened in the climate scenario what is happening in the welfare sector what exactly the government did so the document is going to give you a list of schemes and programs and not the details of it the details of the schemes and programs you have to prepare on your own right now what the document is telling you this has happened in the last one year that means these schemes and programs are important for the exam perspective whatever schemes and programs are mentioned and the the whole list has has been presented here in the document itself you have to prepare them in detail on your own the government this document does not provide any details on the schemes is just list agriculture government has given the PM kissan scheme PN the farmers manhan yoga and enam so these three four things they'll mention that this is what the government is doing now it's your duty to prepare the features and objectives of that scheme because these are the two important things what parameters once you get the schemes and programs for it from this the parameters to be prepared you start with which Ministry has given the scheme what is the target population and if the target population has certain eligibility criteria what the scheme intends to do and how the scheme will do that these are the four parameters which you have to prepare for all of these programs and schemes in the initial years the question used to come on these two things 2015 16 17 you'll find number of questions on schemes which will talk about which Ministry has launched it who is funding it we mean by Ministry is what is the funding pattern Target population what is the eligibility criteria for any particular scheme but in the last 3 to four years the focus has shifted to this where they ask what exactly is the objective of the scheme they'll mention four statements and then give you the options or if this is what the scheme is intending to do how will the scheme do that so what the scheme is there for and what exactly are the features which are going to help achieve those objectives one part of the paper that is Indian economy will always have three to four questions on these so you cannot neglect this part and this document tells you which schemes and programs are important because one question will always remain schemes are more than 500 which ones to prepare now you know a list which ons to prepare along with the top I in which the scheme is so now you have the priority list of schemes that these schemes have been introduced by the government this exactly is the scheme which we have to prepare the probability is high yes there can be certain questions from outside this also but then probability is less more probability is what this document mentions and what the budget mentions same thing for Mains another thing important for prelims is the trend analysis now this is something very less mentioned in this document this trend analysis used to be very good when there used to be a full economic survey so each and every chapter they used to have Trend analysis what has happened in the last 5 years what has happened in the last 10 years now in this document they have presented Trend analysis but of very few variables for example how has the consumption expenditure increased how has the real income of the household increased so there are four or five variables on which they have presented Trend analysis again which is easy to remember if you just understand what exactly is happening you don't have to learn any fact here so what to pick for prelims is the schemes and programs especially on these four variables and the trend analysis any term mentioned here in the document which you don't understand ideally this term you should know because youve prepared from your basic notes and also you're reading the newspaper but there might be certain terms which are new here for example there's a term used near Shoring on Shoring now what exactly do you mean by near Shoring one or two terms like that have also appeared here but most of the terms 99% of it is what is your basic material so this is something which will not help from this document these two are the focus areas schemes and programs data you don't have to mug up you just have to understand the trend analysis because if you see the previous year questions direct data chap they only ask about the trend analysis women labor force participation rate has been increasing steadily in The Last 5 Years so Trend analysis statements is what you can get from her but they have not presented the full one this is why the trend analysis is very less and how this document is important for Mains very good document for Mains the first three topic of mains which talk about the growth performance which talk about the developmental scenario and which talk about employment in India also they talk about inclusive growth and issues related to it now this is something which is covered extensively here because understanding what exactly is the present growth or development scenario in India and facts related to it now one of the most asked questions in this one year would be fact newspaper you don't have to remember any fact from the newspaper all of the facts with respect to whatever economic data is is present in this document so all the facts which the document uses you can use those fact s in your answers whether is it is with respect to the employment scenario the unemployment scenario because newspaper in one year would present number of facts this is one source you can use all the s all the facts mentioned in this source for Mains especially for these two topics so your introduction and conclusion part of your answer is what this document will build analysis is not present in detail so you will not get a lot of analysis that what exactly has happened agriculture problem or what exactly are the the problem they can only build you the what the present status is by giving you the facts and also give you the government efforts so for Mains perspective your schemes in particular sectors problems sches and facts what exactly is the present status these two things you can use for your answer writing one short solution for answer writing because facts in one year are number numerous facts with numerous data points it's very difficult to remember one Consolidated fact sheet you can make from this document along with government efforts in all of these sectors what the government is planning to do now one of the things which is often mentioned in news that women lfp is low in India now how much low you need to present it with a fact you start your answer that women lfpr in India was 23% 5 years back it is 37% today now how do you get this fact it clearly is document mentioned but the problem with this increase 20 to 37 again they mention a fact highest increase has been in unpaid family work in agriculture unpaid family work the female labor force participation has increased the most so your introduction becomes this the next line becomes but increase particular sectors which might not be considered as good employment then you begin your answer what is the analysis required in the question and the government is making these efforts to solve it so 8 to 10 questions which are you going to get in mains you have your introduction and your conclusion ready you don't have to go to various documents to find the facts and also the government efforts in a very concise format it presents all these things in this document also you don't have to read the document completely there is a review document presented by The Institute itself 35 page 75 whatever you understand you anyhow have to prepare yourself sche con prep so there's no need of going through the whole 75 Pages you can refer to this 30 to 35 page document released by The Institute itself that would be enough and regarding whether to read the previous year budget and Survey that is not important what is important is this year interim budget and this year this survey document because these are what has happened in the previous one year this document so there's no need for going to back years to read the survey just because this one was short prep the schemes and programs get your hit here the 2 to three to four questions that are going to come on schemes and programs get those four questions correct do not rush for more sources in that limited Source try to get higher efficiency so for prelims perspective schemes and programs from the mains perspective a general idea about the sector you would know through the facts and also the government efforts this is what is expected from the document is the idea clear any doubts you have with respect to this what exactly has to be covered any doubts now how is the document covered we'll start with the analysis itself there are two chapters which they have covered here the first chapter talks about the economic history of India first they talk about what exactly happened in India from 1947 till 2014 and then they talk about what happened in 2014 to 24 very difficult to know but this is what this is what they have done so they've explained the 10e cycle 50 to 60 60 to 70 70 to 80 till 2014 what exactly happened then they mention what were the problems seen in 2014 and what the good things were seen till 2014 and then they said 2014 what the government inherited and what they did in the next 10 years then the second chapter talks about what happened in the last year so in fact they talk about not just 22 23 some data points they mention of 23 24 also 24 they have mentioned first 24 this so they talk about the roughly one one and half year of the government the second chapter and in this chapter what they've done is this is a very sketchy reference they have made but this second chapter what they've done is they have analed I the whole economy across different sectors first they have seen it from the expenditure end and what they have done is they have told what exactly happened to the GDP from expenditure in that is what the consumption expenditure was what the investment expenditure was and in the investment expenditure they've also talked about the government and then towards the end of the document they have presented a statement of the external sector so first analysis they have drawn is the consumption and the investment expenditure along with government external at the end on other analysis they have presented sector-wise so they talked about agriculture they've talked about industry they've talked about digital infrastructure they've talked about welfare so number of sectoral analysis they have done what exactly good at that has happened and what are the government schemes in all of this now if you see last year there were two questions in Mains one question was how how is MSM important for the Indian economy and what are the government schemes and the other was talking about what is the status of digitalization in India now these two questions word by word have had been discussed in economic survey last year and have been again discussed in the economic survey this year so a lot of people believe that the document is only important for prelims but if you just check the mains question direct word to word question has been picked from or the answer is here question General mm why they are important what are the government schemes but where you find everything Consolidated at one point that is the economic survey so the survey is not just for prelims that you are trying to find one direct question this is not going to happen you have to see what exactly the sector performances and the schemes which you'll have to prepare and mains you will get direct schemes which will help you write all of the 10 questions in Mains so the second chapter talks about the present the first chapter talks about the economic history right from 1950 onwards is the idea clear now what exactly are they talking about in the first chapter the first chapter draws a reference from right 1950s till 2014 and they talk about it decade wise first I'll just tell you a broader reference what it is this and I'll show you the data how exactly you have to prepare from the document itself now what has happened from 1915 to 1960 the initial starting line of of the service says that India had significant riches in the 17th century but due to the British rule the percentage income in India as part of the total Global income has dropped significantly the British rule had constantly led to economic imp empowerment in empowerment in India that the riches were taken away 17th century to British rule there was a problem now what was the Strategic issues here from 50 to 16 how did the government resp respond to them the first was that 1950 India adopted a economy which was highly backward now what did the government do 1950 onwards what Planning Commission anything else what was the policy push in the first decade 1950 to 60 import substitution the document says the the Indian government did two things in 50 to 60 first was a push towards heavy industry and this heavy industry through the government itself which they mention as the state owned Enterprise or PSU the second thing I did done here was the policy of import substitution so 1950 to 60 the government pushes towards heavy industry and import substitution significant investment from the government itself gives good growth here in the first decade problems emerge in the second decade what are the problems 1960 to 70 the Indian economy faces certain problems first was two consecutive Wars 62 and 65 1965 we had two successive droughts in 65 and 66 so three problems emerged in the Indian economy first that you have consistent shortages of there is geopolitical uncertainty what is the geopolitical uncertainty cold war is started from 45 itself now what is the particular Jo geopolitical uncertainty the problem here is that us sides with Pakistan in 65 Now problem here what happened was in the first three 5year plans 25% of the money was coming from us us and its allies were giving most of the money for government expansion that is withdrawn or reversed this is the geopolitical uncertainty plus you have some level of political instability also food shortages and USA combined also meant we had shortages of Foreign Exchange reserves now this is what happened happened in 1970 and 70 to 80 what was the government doing green Evolution major problems what they mention in 70 to 80 see what they say is sub good growth came in 50 to 60 decent growth in 60 to 70 but very big problem in 70 to 80 why because there was a very big problem of jobs and high prices one of the reasons they mention for this high inflation is that there was a oil crisis joblessness is what led to political instability political instability along with inflation there was significant problem of growth in 1970 to 80 and in both these decades government does not want the private sector to grow what slowed down the growth in 70280 was that the license quota permit Raj which was already present before 60 this was made highly stringent because the problem faced by the indraa Gandhi government in 70 was That during this time period now it has 20 years to Independence but problem is the inequality in the country is increasing significantly because what we have followed was a heavy industry based growth which does not create jobs so inequality in the country was increasing significantly because at the bottom there was no jobs there was no future also prospective of how the job will come so what the government did was to control the inequality the government made the license quota permit Raj very stringent they imposed the mrtp act and also to control the use of Foreign Exchange introduce the foreign exchange regulation act plus the government wanted to tax the private sector more the tax rates in the country became very high and if the tax rates are very high you will have less number of people who are paying taxes so as a result the growth significantly slowed down in this decade this is why the Hindu rate of growth is coined in this decade itself emergency time period is also this 75 onwards it happened because the first 20 years did not solve this problem the government effort to solve this problem was this which slowed down the growth considerably now this is what happened this is how they trace what was happening in the first 30 years 50 60 70 till 80 is the idea clear the same thing has anyone has have this document you can mark down the things which are important easier to revise later 1950s the same thing I just told you 1950s the share of world income the India's share of world income shrunk from 22% to 3.8 rapid industrialization with state-owned Enterprise this was your strategy in the first decade the second 5-year plan rapid industrialization with State on Enterprises decadal growth rate was 3.9 62 War 65 War severe drought and high rates of Taxation and persuasive control the growth is significant but 70s drop see these measures had already started in the second half so what happened in the second half was 1969 I'll tell you here itself now 1969 what the government thought was since there are pressures of high inequality and also there are no jobs the Government tried to bring out certain policy measures for solving these things one was that you control the private sector strictly that was pervasive control and high taxation this is tackling one end of the inequality tax them more and also control them strictly through one of the most stringent acts that was mrtp big businesses will have to take permission from the mrtp commission to do any activity now to help the problem at the bottom the government brought out certain policies for redistribution one of the most effective policy here was the reform of the land sealing act nationalization of banks nationalization of coal nationalization of insurance and also abolition of previe purses these were the four most talked about redistribution policies but one less talked about is also the land sealing act 1971 a lot of state governments under the pressure of Center reformed their land sealing legislations so this is what happened in 60s later 60s continued in ' 70s this is why the growth slowed down significantly so this is the first 30 years rapid industrialization 60s May face problems we make the control strict 70s May the impact of that control is seen we are seeing the Slowdown of growth is the idea clear what does the government do after this in 1980 1980 the government makes certain policy changes now this is a decade of very high growth 1980 to 90 now what was the reason for this growth the first major reason for this growth was that the government introduced certain amount of business friendly reforms two policies passed industrial policy resolution 1980 and Industrial policy resolution 1985 so business friendly reforms are being passed along with reversal of import subsitution now what happened here was as a result of these two steps private investments in the country increased multiple times because the government allowed the private sector to invest reduced the number of relaxations with respect to licenses allowed them to get capital from Banks also this is a step which allows Capital also from Banks one of the reforms and reversal of import substitution that means they were made allowed to get imports from outside that meant you could bring in technology so 80 to 90 was somewhat a recovery period the growth was quite high on the same hand to supplement or complement the private sector the government started investing more and especially in infrastructure the government infrastruct the government investment increased or expenditure increased multiple times so 80 to 90 the rebound happened not because the policy was removed the policy was relaxed the strict licensing policy was relaxed this is why we call them business friendly reforms uturn but relaxation and we are trying to open the economy this is why we say liberalization and globalization had already started before 91 privatization or disinvestment was for the first time talked about in ' 91 but these steps had already been taken by the government in 1980 itself now when this happens you have significant amount of growth both investment is increasing and this is increasing and if both is increasing you also have significant incomes for the household the consumption expenditure also increases this is the decade of 80 to 90 then what happened in 90 why the crisis in 91 Gulf War okay the two mention these are the reasons which the document also mentions 1980s reform measures for increasing domestic competitiveness these are the two policy reforms I told you removal of price controls reduction in import duties Del licensing of domestic industry liberalization with massive government spending so private investment is increasing plus massive government spending your growth is exp gone to 5.7 but what was the problem with this growth yes there were two reasons for growth which triggered the crisis this was the disintegration of USSR and the gulf or Iraq KU War now what were the implications of these what happened in the Soviet block disintegration Russia rubal Aid anything else but Unity indis external this is oil price increase double $17 per barrel to $34 per barel one day increase that means import you need significant amount of dollars see one of the reasons why Soviet block disintegration caused panic in India was that this was the only region where we were exporting much most of the exports from India were to most of the Eastern European countries which were part of the earth while Soviet block now what the problem happens export gone and the import increased plus when you made this liberalization you already had increased the significant activity of domestic industry that means they were also importing significantly Nows in the last five years in the Rajiv Gandhi government Imports were already increasing now this is happening where are the dollars to pay for this import this was the question that you are bringing in the Imports where are the dollars where are the exports this was what seen in 991 because most of the Imports this dollar was with the help of the short-term borrowings the same thing happened with the government also the government had increased the spending but where was the tax to pay for the spending that means the government was effectively borrowing that means you had significant amount of both fiscal deficit and current account deficit this was what the problem was in 91 and since you have increased amount of fiscal deficit on the increase in demand demand is increasing because of the expenditures 1980 to 90 now if your investment is increasing government expenditure is increasing and also you have increase in consumption expenditure that means aggregate demand of the Eon is rising if the aggregate demand in the economy Rises without much change in Supply this is my aggregate demand this is my if there is significant expansion in aggregate demand and the supply is not responding much the curve shifts here increase in demand that means we have significant amount of double digit inflation is what is seen in 91 so macroeconomic stability gone off the charts because you have significant double digit inflation you have significant amount of fiscal deficit because government is investing but the government does not have the money for it government that means was borrowing all the time and you had significant current account deficit also because you had allowed easy Imports but exports were not improving the two triggering steps were the Soviet Union collapse and oil crisis but underlying macroeconomic stability was already bad this is what happened in 91 according to the document and this is what happened actually in response the unsustainable government spending government had increased but did not have the money for it internal sociopolitical environment plus triggered a balance of payment crisis because we did not have money to pay we did certain reforms in 1990 91 was reforms what were the reforms the next set is 90s to 2000 1992 2000 what happens in this decade the liberalization privatization and globalization reforms what happened in these reforms the government did two set of reforms one was to stabilize the macroeconomy and the second was to improve the structural performance for example the new industrial policy of 1991 increasing globalization trade improving banking sector Capital financial sector also opened up sebi creation improving the insurance sector macroeconomic the government wanted to be fiscally prudent control fiscal deficit and also inflation so the government did number of steps the budget announced that the government will cut its expenditure the first expenditure to be cut was the government reduced the subsidy on fertilizer further government removed some of the export subsidies given before so the government is reducing its expenditure and at the same time also improving the taxation system this whole reforms meant that the production activities in India will happen through the market there will be less and less role of the state these are the reforms done in the 91 to 2000 but there was certain hiccups seen in this time period 97 we Face an crisis in Asian countries the housing bubble now what happened due to this crisis we had significant amount of exports going to these areas so exports from India fell down and on top of it we also had a problem that foreign direct investment that was coming in India also had seen an outflow so there was certain small crisis seen in the later part of this decade 97 onwards combine this with the political instability because we had number of prime ministers in a very short span of time during this timeing further problems happened agriculture monsoons failed we had cut down demand in the rural sector so there were several factors after 97 when the growth slowed down in this decade of 90 to 200000 we had done certain reforms but certain slowdown in this the growth momentum was affected after the mid decade due to external and internal issues like slowdown in agricult frequent changes of government real growth was 5.8% real growth was better in 1980s also 5.7 but this it was not stable it was on back of increased government spending without having the money so yeah 5.7 was good growth but this was not stable which led to crisis in 91 91 to 2000 we had 5.8 slowed down because of certain problems after 97 is the idea clear what happened in the next decade 2002 mostly 2008 now 2000 to 2008 India is seeing significant growth the growth is seen because of certain factors for example private sector investment is increasing significantly because there is the government is continuing with the the LPG reforms letting the private Market participate the capital markets are also being reformed so you have better availability of capital both from Banks and capital markets so private sector investment increases significantly and the government expenditure also because government is facilitating creation of infrastructure the most significant thing that happened in this 2000 to 2008 was that India had witnessed significant increase in foreign direct investment foreign direct Investments had increased significantly during this time period because after the 7 97 crisis the Europe plus us where should the money go they don't have need of savings they need to invest in they need another area where they can invest in only two places are found worth investing one is China and the other is India because India has the advantage of stability that is democracy India has skill that is demography and India has Market that is demand and this FDI increase in India specifically along with government support to infrastructure was with what fueled the services growth this decade tells us that India has a service sector Le growth 2008 there's a problem what happens in 2008 the financial crisis in us and since number of people have invested in the housing market in Us in its investment Banks a lot of people lose their money now how does the Indian economy responds to this Indian economy is facing a Slowdown because it has been integrated with the world economy after the 2008 Global financial crisis how does the economy respond to this there are two policy things which will again create adverse consequences one was expansionary fiscal policy loan waivers were given excise duties were cut number of policies cuts from the government to increase the expenditure and also the Central Bank expansionary monetary policy that means the interest rates were cut down to significantly low levels both of them without much improvement in Supply fueled double digit inflation so again 2014 Tu we have two major problems we have significant amount of inflation and we have significant amount of fiscal deficit so what the government gets in 2014 is double digit inflation and high fiscal deficit also the problems on current account deficit still remained because there was slowdown in the world economy after 2008 Global financial crisis and the 2012 Greece stopped paying the debt Euro Zone crisis this meant that the exports were not going out and also there were subdued FDI you had a problem of financing this so IND again has inflation and twin deficits which we see in 2014 this is how we have reached till 2014 so the document mentions that this is what we are getting from the previous governments till 2014 14 onwards things will change what is there to laugh so 2000s you have momentum in domestic economy corporate performance improving conducive investment climate India's average growth was 6.3 the best growth we have got in 200 to2 2008 10th 5-year plan maximum growth 8% however the global financial crisis foundations bad debts increased nominal GDP was high because of high inflation High fiscal deficits High inflation double- digit inflation till 2014 this is how we have reached till 14 the country faced twin deficits fiscal deficit 4.9% and Indian rupee depreciated by 5.9% depreciation because exports were not happening Imports because Indian Imports are elastic inelastic despite the price decrease we could not despite the price increase we cannot reduce the quantity say currency depreciate is the idea clear what 2014 now what the document says what were the lessons of growth we've got 2014 th what were the positives here which we had seen the positives which they mention about this time period now what exactly has the Indian economy witnessed till 2014 the positives one first that being an open economy has provided number of benefits to the Country Now open economy gives two benefits specifically that India has grown on the back of also India has got significant amount of that means India gets significant Capital plus technology the second positive which we have seen till 2014 that though we have significant public investment that is the government investing in infrastructure and also through psus both things and also also investment through PSU this has complemented well the private sector Investments so India has a presence of both public Investments and private Investments both playing a very critical role it's not that after 91 that we saw that there would be disinvestment and the public investment would reduce but both have happened at the same time this has complemented this well so this is increasing even this plays a significant role and the third thing they say is that technology has played a significant role in bringing growth so till 2014 the three positive scene in the Indian economy is that open economy has given benefits public investment and private investment both can help and technology has given us significant growth and at the same time it also talks about the problems which the present government can face are the positives clear now what the problems the present government can face what could be the present problems the government is facing it talks about four things and they're related to this only the first thing they say is that no longer do you have an environment of globalization there is now protectionism and this is where they mention these two words the countries are now near Shoring that means the countries which had dependent on the global value chains are now looking for options nearby their homes or are looking for options within their homes so either they're bringing the supply chain back to their country or they're bringing the supply chain to nearby countries which are favorable to them that means there's significant amount of De globalization that is going to happen this is what the document says is going to present a challenge for India the first major challenge is the de de globalization pressures which you'll have you no longer are going to get this you will have to diversify your exports both in terms of of what you export and to where you export because now you're seeing pressures of De globalization the second problem which they mention is the very fast change in technology and the impact it is going to have on the jobs and this is the third interrelated problem to say AI say the question would become more of so the present government has these three major challenges de globalization protectionism how do we now grow because mostly we were getting help here now this might not happen because the countries are choosing friends which are close by and this is what explains the rise of regional trade agreements the bilateral trade agreements and also plurilateral where some block countries are involved for example the RCP because there is a problem which was seen during pandemic supply chain resilience question mark everyone was dependent on China now countries want to move away from their dependence on few countries this is what they are calling as protectionism then the rise of Technology now what the document says is and other documents also presented by the chief economic adviser they say the previous technology changes that happened in the world gave a lot of time for the societies to adjust so if there was an internet boom in 2000 there was significant time period to adjust because the cost of Internet came down very slowly it was not very accessible but now the changes that are happening too many changes are happening too fast so how do the societies respond to this especially economy how the nature of work will change how the jobs will change this is a question which has to be addressed this is why they talk about what type of skill is required and how much of reskilling would be required because this technology is constantly changing and this presents a very big threat on this because what India is exporting is mostly lowlevel communication Services BPO along with high level also we are transporting business consultancy and financial services also but low level directly threaten and the fourth thing they talk about is the energy transition now what is the problem in energy transition we are facing pressures of climate change that means we have to shift towards cleaner sources of energy but what is the problem here India still has significant amount of energy poverty so we have to solve the dimensions of this while dealing with this because renewable energy would require significant amount of capital and would require significant amount of Technology uh is the develop mod helping India to get both of these or not and they try to judge also how we are performing in this while talking about climate in the second chapter they talk about how India had talked about ndcs and they have we have already surpassed the indices which we had set for ourselves the renewable energy generation capacity increase in India has been significant we not just talking about this we are also talking about Energy Efficiency both the things are important using the energy sources efficiently and the renewable ones so positive still 2014 could now turn into a problem because of what is happening both externally and internally how the world is changing with respect to technology with respect to climate change and also with respect to their policies how open the world was till 2014 now what we are witnessing these problems is the idea clear now what exactly has the government done to solve any of these yes these are your lessons close to copen transition from dominance of public investment to coexistence of public and private and the third technology began to be identified as a cre growth driver the three benefits which have been discussed just a second 2014 to 14 what exactly are the problems which we faced then we'll discuss 4 to 14 also increased geoeconomics fragmentation artificial intelligence threatening job security and ensuring availability of talent and appropriately skilled Workforce what has the government done to achieve any of these or what has the government done from 4 to4 4 to14 the document says has been a period of high growth they have presented significant amount of data for this that India is the fifth largest 10th to fifth largest globally fastest growing economy among the G20 economies after pandemic India is one outlayer which has seen more than 7% growth in the last 2 years plus suffered due to pandemic real but agile response to have 7.4% on top of last year 99.1% employment rate in urban in decreased current account deficit has reduced and building of infrastructure both physical and social see this is how you use the facts in Mains now these facts will not be asked in prelims but this is how you can use all of these facts in Mains now what exactly the government this is the growth figure Urban unemployment is decreasing current account deficit is decreasing plus increase in infrastructure both physical and social infrastructure now what is the reason for this performance what has the government done differently from 4 to 14 see one of the things the government has solved and this is what they talk about the drivers of growth the first thing which the government has done in the last 10 years the crisis came from the Twin balance sheet this was the first problem what was the twins balance sheet problem that number of corporates had taken debt from banks these failed and they had taken money from even these have failed as a result of this and this failure is what we called as the NP prices so what the document talks about is the first thing the government did was trying to create the space for Capital investment for private how by solving the problem of banks now how did they solve the problem of banks this is what the document talks about driver of growth first is solving the twin balance sheet problem the percentage NPS have dropped in the banking system how have they dropped IBC they talk about two reforms which the government has done first recognition of the problem under asset quality review and further using the prompt corrective action now what was asset quality review see these terms you should know because these term can come in the exam again what was asset quality review RBI sent officers to various Banks to a certain what exactly was their situation asset quality review was an exercise taken by the central bank to review the actions of banks whether the loan should be classified as an NP or not the second thing which they did was prompt corrective action what is prompt corrective action the central bank can take certain supervisory actions against the banks if there is certain issues ISS there is supervisory action placed on the banks this is what is the prompt corrective action they do prompt corrective action based on three parameters this is the capital adequacy ratio second is how much percentage of NPS you have that is asset quality and the thir what exactly is your leverage based on these three parameters we will place Banks under supervisory actions if they are facing certain issues so the government did two major steps they mentioned that how we solved the RBA asset quality review and prompt corrective action how did government help in solving further this was mostly recognition problem here the solution came from and the banking regulation Act act now first what was IBC see what how the problem got solved was four they don't mention the four words but they talk about these steps the first step in for solving the twin balance sheet is that you need to recognize that you have a problem second is you need to resolve the problem third is you need to provide money to the banks and fourth reform these are the four things which they have talked about in the document also now the first is recognition that is happening here resolution resolution of bad loan under IBC what is the concept of IBC time bound resolution process that if an entity has a bad debt I'll just tell you in brief what exactly happens here if an entity company a owes something to the bank now both bank and the company a can ask for resolution under IBC before IBC it was only the deor who could ask for resolution after IBC both dettor and the Creditor can ask for resolution so now Banks can take this to the adjudicating body that is n the company will be taken what the NT will do is NT will place this company under an insolvency professional they will conduct an auction who is going to buy this company and give money back to the X this is how resolution of bad debt happens if you don't find anyone in the auction the company gets liquidated resolution is trying to resolve the debt whether by the same owner or by a new owner IBC prohibits the same owner to present resolution only new biders will come this was done through the banking regulation act a section 29a was introduced which said original promoters cannot present a resolution plan further changes were made which they talk about in the document also section 35 5 AA and section 35 a this was a very significant Amendment done to banking regulation act this amendment said that RBI can ask the banks to initiate regulation for particular cases in certain cases if banks are reluctant to initiate resolution RBI can force the banks to initiate regulation this was the two major amendments the Third amendment made in the banking regulation Act was that Urban Cooperative Banks were brought under RBI control they were already under RBI controlled through an amendment in 66 but now 2020 Amendment which the government made gave extra powers of control of urban cooperatives to RBI so two major changes to banking regulation bringing Urban Cooperative Banks under stricter control of the RBI already control 66 say but now more regulations of the RBA over Urban cooperatives and improving the IBC process where the RBA can ask the banks to initiate IBC this is how the bad debts of the banks have been solved reform measures which they say the bank the government has done the reform measures is that the government has merged public sector Banks there have been number of merges after 2014 of the public sector Banks so four steps taken recognition resolution primarily through IBC and merger of public sector Banks so this is what cleaned up the banks this is we'll discuss sector-wise performance may they have shown how the credit activity of bank has improved because of these reforms is the idea clear now what has the government done apart from cleaning the banking system and the whole document talks about all those steps only framework and this is the in this framework itself they'll talk now what they have improved is first they have improved the regulatory processes single window clearances digitization significant impact of reducing the human interface and having digital interface in most of the department whether it is gstn faceless assessment scheme of income tax most of them are single window clearances on a digital format the second the third thing apart from this ease of doing business by introducing significant loss for example GST reducing the corporate tax improving the income tax they also say that ease of living has also been increased because of investment in digital infrastructure further Improvement in that is Improvement of logistics welfare programs the efficiency has been increased by introducing direct benefit transfers help provided to MSM these are the broader schemes programs which the government has done digital infrastructure welfare and throughout the document you'll find a mention of these three things only new welfare that is covering all classes of people direct benefit transfers and they talk about five major schemes here they talk about provision of the Ula scheme what is Joga aayushman bat is a broader one but janara Health scheme No 5 lakh is aayushman bat what is janara scheme generic medicines being sold through the government and this is what they talk about welfare how what exactly they've done talked about welfare is how the government has improved the welfare is in the previous governments what they say problem on both hand what they have said 2014 major problem 2014 major problems were two one was that the government was not able to take decisions there was significant amount of policy paralysis they were not able to take decisions there was always confusion in the government and the second problem here was whatever subsidies the government was giving these sub subsidies were not targeted poorly or targeted well they were targeted poorly what meant was that what the government is spending on subsidies and what the people are receiving there's a very huge gap because the targeting was not proper so now what they say is the welfare schemes which the government has now brought in has two features it is equity with efficiency Equity means providing it to all and efficiency in delivery and how is efficiency in delivery being brought about that is they talk about so Equity with efficiency better as opposed to previous governments which were spending significant amount of money but the benefit was not received by the people and the policy indecision has been solved where we have introduced significant regulatory processes which have been made easier where the government is taking decisions so both the things are improving and the third problem the structural problem that was your lack of physical infrastructure so now the second chapter across schemes across sectors we'll talk about these three things only that how everyone is being covered how the investment climate has been increased to create jobs because the benefit of India the till 2014 benefit was that public private investment should also be brought in and physical infrastructure to bring them in is the idea clear now whatever the schemes are in these three this is what they have talked about this is what you have to prepare in detail first is reforms to resolve the twin balance sheet problem simplification of regulatory Frameworks ease of living and ease of doing in this they talked about many other regulatory reforms minor offenses the Jan vishwas Bill improving regulation unnecessary compliances have been eliminated engagement of the government with the private sector through various schemes P make in India micro small medium Enterprise sector getting emergency credit emergency credit line was a scheme that during the pandemic when the msme face problems on repayment they'll get two things moratorium and guarantee guarantee to their payments was to be given by the government Revision in definition of msmes introduction of Trades platform what is trades platform these are the things which have to be prepared broader idea I tell you what the government has done particular schemes is what you have to prepare what is threads discounted bills how or a platform for discounting of bills see what is a tread platform the biggest problem there are number of schemes to solve that also the biggest problems faced by the msmes in India is that msmes do not get payments on time they have significant amount of delayed payments government has made changes for delay payments also now what will happen here if an msme has supplied certain material to a particular company and the company did not pay them the money they have this company has issued an invoice that we have to take money but what if this MSM is in need for money now what they can do is they can use this invoice to get money from a bank or an nbfc inv in you can get some amount as loans but what the banks or NB will do is they have taken the invoice of 5 lakh rupees but they'll pay them or give a loan of say 4.5 lakh rest is the income of the bank this is called as discounting and the banks will collect this invoice from the original player so what the transaction happened they had to take money they did not get money on the back of the invoice they got a loan but it will not be the complete amount because the banks will also charge interest interest charge this is called as discounting and banks at the end of the day will take money from a is the idea clear the government has created a platform for this activity to happen which is trade receivable e discounting system where the invoice is called as trade receivable trade receivable online portal which will enable the msmes to raise money from formal institutions in exchange for their trade receivable the person who had to give the money is going to pay the complete amount this is the platform which the government has created to solve the problem of trade delayed payments and this whole activity is called as the factoring business this is what is Treads platform using digital tools to improve the cash flow to msmes is the idea clear this is how the document has to be prepared Logistics and infrastructure Improvement bhat Mala uran sagur Mala National Logistics policy digitalization reforms digital India inclusive welfare policies where women free gas connections Hospital admissions Paka houses the five I told you water electricity water G the water house LPG all of these connections provided by the government Equity with efficiency this is is what the government has done in the last 10 years and these schemes will be again talked about in Chapter 2 problems faced are these geoeconomics fragmentation AI threatening job security and skilled the fourth one not mentioned in this document is energy energy transition from coal to renewable and why that is a challenge because we also have a concern of energy poverty people not being able to afford electricity so can we shift to a higher cost electricity generation when already people are not able to afford electricity in the country to solve or tackle these track record of overcoming challenges pradan mry vikas Cal Vias yoga renewable energy shift away from coal internet penetration DBT Financial inclusion Jam covid vaccination plus space sector that we've already overcome by improving on the three the framework Remains the Same infrastructure Equity with efficiency in delivering how have we done that by DBT and digitalization jam Janan Adar and mobile and the third we have is the regulatory process because we understand that public investment is important is the idea clear from 20 1950 to 204 and in the next 10 years of 2014 what has changed Journey ofit same parameters you have to use now the second chapter talks about the last two years now what has made the Indian economy resilient now what is the reason for resilience of the Indian economy that we have got 7% above growth the first have given the data that what exactly do we mean by resilience recorded 2 years of above seven and 7.3 is estimated share of manufacturing in volume terms increase to 177% and in the last 10 years manufacturing addition is 17% and service addition is 54 rough idea you should know what is the agriculture contribution to GDP how much it is industry is roughly 27 just say manufacturing remains 15 to 17 Bad years it goes to 15 good years it goes to 17 but it is stuck from 1991 on 16 to 17% only this is what explains jobless growth and we have services around this this is what the rough idea you should have this is how you use the facts in Mains and also you asked in prelims so 17.7% manufacturing I'm talking about 27% which is addition of Industry industry one of the major parts is manufacturing manufacturing is 16 to 17% of GDP services this now one thing which they have mentioned which most of the documents do that a lot of controversy is happening on GDP numbers that a lot of people question that Indian GDP numbers are not true after 2015 the changes that have been made do not represent the true picture this is what happened last month also there was a article published by one of the previous IMF om IST Ash Modi he said it's not 7% it's roughly 4% because expenditure numbers are different from production numbers same thing has been highlighted by the previous chief economic adviser that is Arin suano he says what deflator we use has problems WPI use update WPI is being used to deflate our economy so what the document says if you don't trust these numbers then how do you know how the economy is growing if you don't trust the numbers you take the numbers with a suspicion how do you put your claim that the country is growing everywhere we use certain proxy indicators and these proxy indicators are certain indicators which give numbers on a high frequency these high frequency indicators is what you can utilize to understand whether growth is happening or not if you don't trust the GDP numbers for example same thing happens in China China is not a very transparent country when it comes to giving the numbers so trying to know whether China is growing or not we use proxy indicator something which is high frequency for example what is the volume of rail fret you have in the last one year this can give you a good idea whether industrial activity is improving or not whether goods are moving from rail or not second could be what exactly is your electricity consumption plus what exactly is your credit creation so there could be certain high frequency indicators which can give a good idea whether the country is growing as per the numbers you claim or not so the document says even if you do not see this witness the high flying the numbers that is high frequency numbers the unemployment rate rail fret traffic Port traffic all of them are significantly improving increasing EV bills also so these four high frequency indicators are improving that means India has shown certain resilient growth so if you don't trust the GDP numbers you can witness certain high frequency proxy indicators so the document says witness all of them unemployment rate rail fret Port fret and also EV Bill generation these four things will tell you that economic activity is on the rise India is growing this percentage So This Is How They tell it this is the present picture in the last 1 1 and a half years 7 7% growth and expected is also 7.3 whether you go by the GDP numbers or whether you go by the high frequency proxy indicators is the idea clear now what are the reasons for this the first thing they talk about the reason for this is the consumption demand we'll talk about all the four factors the first Factor they talk about is the consumption demand now how can the consumption demand increase this this is the first Factor private final consumption expenditure now what is the reason for increase in this explain through only one factor that is income first Trend analysis which they have done is the share of private final consumption expenditure in GDP that is sea how much percentage is in GDP this is your Trend how do we solve Trend analysis we solve not by remembering the facts we solve Trend analysis by just picking up the outlier here because the question in upsc is steadily increasing or steadily decreasing now if you have to solve such type of questions you can't remember figures up to 5 year or 10 year what you can do is in these 5 to 10 years there might be an year which is an outlier there might be certain very good or very bad event that happened now what could be that outlier in these years will help you solve the trend questions for example if you see this trend you have a significant drop in consumption expenditure between 17 and 19 that is in 18 now why would this happen GST and demonetization the faulty implementation of GST killed a lot of msmes and if the msmes go down incomes of people will go down this is why consumption expenditure had seen a Slowdown also 21 to 22 there was a slight slowdown slowdown of export demand this is also led to certain slowdown question steady increase or steady decrease you already know there are certain outlier years increase steady but decrease increase then further consistent pattern last 5 10 years how do you know you just remember the outlier years now what was the reason for this share of private the contributing factors that have been mentioned is the per capita real gni increase that is the income in the country has been increasing the financial year 24 and 23 as compared to the previous years again Trend analysis you find year where the income was not increasing for example Financial year 21 what was the problem in 21 pandemic loss of incomes this is why the income fall down so if the question is 5 year 10 years there's no consistent pattern till 1920 it has increased 21 decreased then it is again increasing so last 2 years the income has increased now why has the income increased expansionary monetary policies do we have a low interest rates in the last two years inflation High capital expenditure see the first thing which they talk about is why this happened is because consumption base has been secured during the covid and after the covid also one part of the economy was growing significantly that was the service sector what they say is private investment was not significantly slowing down private investment was in the last two years was high which has created significant amount of jobs both private investment and that is domestic and foreign plus what happened during covid management of covid this has also led to increase in consumption expenditure last two years what happened in covid work from home to expenditure impact so people are not spending we're talking about consumption expenditure creation of significant people had the money but they were not making the expenditures this expenditure is now what is showing in the last two years so what they say is good economic management by the government has created positive effect and people have spent after the co so there is private investment which is creating jobs and there is the good Management in covid where people have spent their money after this ended further they explain what is the contributing factor is that sebi has created a significant amount of positive investor confidence number of people are investing in the capital markets in India the effective regulation by sebi has built in sign significant amount of confidence due to which the number of demat accounts in the country is increasing and we are seeing people investing in stock markets say consumption expenditure has been high developing public digital infrastructure now this is what the government sees as the maximum reason cost for increasing in consumption expenditure people already have the income now what the government believes is during covid there were certain changes in the economy that it was easier for the government for the people to spend this income this is what they say that a lot of Commerce has moved on the digital forums those digital forums along with payment technology that is this is what is pushing the consumption expenditure up people are buying more because most of these services are now easily available at home along with payment services which are digital less cash so digital Technologies to increase the Private health expenditure whether it is Healthcare digital payments and grocery shopping pattern observe consumption expenditure is quite good see this document does not talk about the problems they're not talking about consumption expenditure improve they're talking about average of the country where both good and bad happened so they're talking about the average and this is the average increase there are significant people whose consumption expenditure has also gone down but the document does not talk about any analysis of this just tries to explain 7% growth it's not talking about any analysis which is going to help you write analysis in Mains but definitely find you the reasons the good part which you can mention rural India inclusiveness this is because of their welfare policies inclusive welfare policies where the government money is reaching to the people direct benefit transfer including the money that is the kissan and all of those schemes which are giving money directly in the bank account accounts whether in LPG or any of the other schemes and they presented facts also is the idea clear consumption expenditure wide increased now second is investment this is the trend analysis with respect to investment increase over the last few years unsustainable credit boom this happened in 92000 to 2008 problem in the next years and then solution of the problem which has led to recovery so the investment coming mostly from the banking system has increased because the government has cleared both the banks and also the nbfc due to which the loans which were taken excessively during 2000 to 2008 NPS turned into the next 10 years this has now been solved and the recovery of investment mostly because it has been made easier to take money from bank and nbfc we've already discussed the four reforms they have done in Bank what reforms they have done in nbfcs has the government done any reforms in nbfcs they've talked about reforms here also two major reforms first prompt corrective action framework has been introduced for nbfcs Also earlier which was available only for banks has been introduced for nbfcs and second a Scale based regulatory framework different category of nbfcs have different regulations the two major changes which the government has done in the last few years for nbfcs is introducing the prompt corrective action in 2021 and a Scale based regulatory framework scales may nbfcs they have divided based on how much money they have and what type they are based on where they lie in the framework they will have certain supervisions or regulations these are the two reforms in nbfc say investment levels have increased so the first major level of increase in investment is because of banking system then further the investment has increased in the country because because of the government investment boosting reforms and healthier balance sheets banks have been improved capital expenditure of the public sector now this is the step where the government has invested more spending money in physical infrastructure whether it is through Union government giving it to States Central PSU investment all the three segments have increased significantly so it's not just the private investment we are creating the investment for we are also increasing the and as a result of these two you have an impact on consumption also whenever the government will spend the money on any of these assets where will the money go the money will go either to the firms or the households either the salaries to the households or to the firms in terms of purchases of goods and services emphasis of on infrastructure address supplies side deficiencies now what exactly is this the government specific schemes on infrastructure Logistics now what they say is how the government has improved they have done two governance reforms one is the pragati portal and the other is Project monitoring group portal these are the two digital infra the digital inclusive methods which will increase the investment coming from firms any idea what is pragati what is the pragati botal it's there in the prime minister's office PR portal for monitoring the idea of pragati portal is grievance redressal whether it is for individuals or for firms you can directly launch your complaint on the pragati portal and this portal is housed in the Prime Minister office this project monitoring group portal is mostly for PPP projects where investment is more than 500 crores even this was earlier present in the prime minister's office but now this is has been taken out and this is given to the department for promotion of internal trade industry and internal trade this is under Ministry of Commerce 500 this is the PMG portal otherwise grievance redressal whether it is of the firms or the households it is the pragati portal so this has been done along with the GTI Shakti portal this is to reduce this governance reforms so that investment can be highs problem solve government itself is pushing more money and third sorry government is doing governance reforms to push more money so consumption expenditure we have created the whole era where income is increasing and investment expenditure we are doing in the reforms for bringing in money as a result private capital expenditure has increase one more part they talk about is household sector investment is household investment counted in investment when we say the investment expenditure GDP from expenditure method we see is consumption plus this is household private final consumption expenditure this is gross fixed do we include households here only if any household is financing constructing new homes this is the parameter which they have discussed household sector investment uptrend in housing sales so when we talk about investment private sector investment is increasing because of solving the problem of Banks and nbfcs the government is spending more in infrastructure both money and reforms to solve the problem of them investing and household while constructing new homes why there's an uptick in housing sales and launches households why are they doing that is be reason they have explained what is the reason for increasing in this investment this is a governance reform which the government has introduced that is R act to create confidence in the people they have incomes they have savings now the governance also the real in the real estate regulat Authority this is why the investment expenditure in the country has increased next they talk about sectorial performance performance of Agriculture here the various reforms mentioned in agriculture now what facts are important for the exam the facts important is this 18% of India's GDP comes from Agriculture and India is the leading producer of these three Commodities that is milk pulses and India is the largest producer of milk pulses and spices second largest producer of fruits vegetables tea farmed fish sugar cane wheat rice cotton and suar so these type of questions have already come in prelims who's the largest producer of rice in the world who's the largest producer of pulses all of these type type of questions have already appeared so three May rank one number of goods where India is ranked two exports have also increased the previous years reached 4.2 lakh CR in financial 23 important if you present any data in Mains not for prelims prelims important is this now what has the government done in agriculture in the previous few years what have been the government schemes the first is remunerative prices to Farmers the government is providing 50% margin over MSP but MSP does not have a legal backing just so this seems like a paradox the government is saying we have provided remunerative prices to Farmers Farmers maybe they've not got the direct benefit transfers of this now the scheme to be prepared here is pradan monry anad sunction Aban PM Asha PM Asha has three three things here which are solutions to this also one of the PM Asha scheme is the price stability mechanism under this the government is not just going to announce MSP the government is this is price support scheme the government is also going to take procurement of mostly pulses and oil Seas three crops they mention pulses OES and cpra so under the price support scheme the government says which is one segment of PM Asha the government is not just going to announce the government is also going to procure three crops copra pulses and oil seeds the central government agencies will procure nafed and FCI the second is the price deficiency payment system what is the idea of price deficiency payment system see what will happen in normal MSP the government announces the MSP and then the government proc what will happen in the price deficiency payment system is the government will announce an MSP but the government will not procure the farmer will sell in the Market at market price if there is a difference between market price and MSP and market price is less than MSP the government is going to pay the difference so in this case the government is not going to procure the government is going to take the crop is not going to procure the government is letting the farmer sell in the market the difference if they getting less than MSP the government will pay the difference for example if the MSP is announced at 120 per kg and in Market they received 80 per kg They will receive 40 rupees from the government now this price deficiency payment system under PM Asha is to be launched only for oil seeds and the third is launching on a pilot basis procurement by private players so PM Asha has three schemes price support procurement of these three deficiency giving a deficiency payment for oil seeds and private procurement allowing the states to allow private sector to procure till now government is the only agency which is procuring at MSP under private procurement stock is scheme the MSP Le procurement will be done by private sector these are the three schemes under PM Asha so this is how you have to holistically prepare the scheme what exactly the government is doing you can have this scheme as a question asking the features of any of the three is the idea clear MSP what the government is saying minimum 50% MSP mostly work for rice and wheat because they are required under PDS the government announces it for 22 but procurement happens of two procurement because if you see procurement for these three deficiency for also this and private private procurement be oil seeds and pulses not for other crops these are the Fe of these three schemes then financial support to the farmers the government has three schemes one is saman nidi yoga under this the government is giving how much money 6,000 to whom Farmers marginal see this is how you have to prepare the scheme eligibility it started with giving to only small and marginal Farmers that is less than 2 hectares but presently the government is giving to all Farmers landholding farmers are the beneficiaries of kissan saman nidi where 6,000 is given to all landholding Farmers this is how schemes have to be prepared FAL Bea yoga Insurance what exactly is happening how is the government covering the insurance who will pay the premium Center State and farmer how much the farmer will pay 1% 2% and 5% that is already capped rest is to be distributed between Center and state claim given to the farmers if there is loss isan manhan yoga what is this about see not just you'll have features of Anye because there are number of schemes this is providing pension there's a similar pension scheme for unorganized workers also so you have three direct benefit schemes FAL Bea manhan and saman digital inclusion enam what is this enam scheme all of the apmc mundies will be brought on one portal this question has already been asked on enam what exactly are the features food security pradan mry G Kalan Ana what the government is doing here food grains to 81 CR beneficiaries has been extended for 5 years what the government is doing here to already nfsm covered national food Security Act says that we have to cover how much 67% of the population 67% of the population has to be provided free food grains is it free food grains then nfsa features PR it is subsidized food grains Central issue price the price at which Center gives the grains to the States this will be fixed at who can revise this price only the central government can revise that two after 5 years of the act and this number cannot be more than MSP this is the regulation given under nfsa what the government has done under pradan mry G Kalan an yoga the government has made this zero the government is providing it free the whole expense of this is being paid by the centrer government this is why PDS shop you'll have the photo of the central government Kerala government has said no cment this is the recent controversy that has happened same thing happened with West Bengal also so you should know the features of the scheme what exactly because schemes are what are being asked or po document is filled with schemes only other initiatives agriculture infrastructure fund PM kissan s yoga s yoga is for what that's m s yoga what is s yoga food processing Mega food Parks per drop per per drop more crop Kishi siai yena sustainable sustainable this irrigation components accelerated benefit program per doop more crop and waterers shed development waterers shed development has been asked twice in Mains The Accelerated inflation benefit program has been asked in prelims this is the third component which has not been covered so you have to cover all these schemes s yoga infrastructure fund and per drop more crop that is accelerated benefit and water shed they've already been asked in the paper this has not been covered agriculture either they are picking up facts with respect to numbers who's the largest producer who's thear largest exporter what do we import or second they are asking what the schemes are here you have five to seven different schemes starting from PM Asha to K kisan the pension scheme and also insurance and then enam enam already been covered the G Kalan Ana nfsa already been asked so you're already seeing agriculture say they've asked number of schemes and now agriculture infrastructure fund s yoga per drop more crop is the idea clear Agri stack for infrastructure digital infrastructure computerization of packs and drone usage 100% financial assistance for drone demonstration on Farmers field these are the things which you can write in your Mains answer because one of the topics in your main syllabus is technology adoption for Farmers these are the three technology initiatives being taken by the government Agri stack computerization and drone drone uses today also the government is using drone now what are the reforms pushed to Indian industry industry reforms he not seeing other Dron this is what I'm saying reforms to indan Industry what is PL P already last year asked one statement what is PL not the just the full form what happens in production linked incentive till now the government has not spent money on infrastructure schemes the government industry schemes the government is providing benefits in the form of effective regulation plus these are the two Focus areas of the government ease of doing business and providing Logistics the sagur Mala bhat Mala all of those Logistics schemes including the Fret Corridor schemes all of them have been centered here but now for the first time the government is going to pay money to some selected firms last year here upsc asked a question whether the selected firms will only be domestic or foreign both selected firms in what sectors how many sectors are total there in PL there are total 14 sectors we started with three now we have extended to 14 you should know have an idea rough idea about what those 14 sectors are and these incentives are given to selected firms who apply for PL and they have been given certain targets to fill the moment these targets are fulfilled the money will be paid this is why it is a production linked incentive benefit of production linked incentive has been talked about in brief then startup India what is the policy of startup India what is the definition of startup who has defined startup is it Innovation that defines startup one component how do you define innovation what is innovation is any of the startups which we have in India which are unicorns are the Innovations see these are the probable questions questions startup India certain initiative is going to get money how do you define a startup who has given this definition of startup and what are the benefits which are received under startup India this is how the document has to be prepared understand this document is just talking about the performance in one year and that to the positive performance what good has happened they're not analyzing anything bad jobs come your this has happened in the industry or agriculture they're only mentioning the schemes and you've seen in the previous years these basic type of questions are asked in the paper they're not asking very high technical question so it's in front of you you should know what a startup is what open network for digital commer what is onc what is onc e-commerce platforms integration of everything UPI movement for e-commerce anyone can start because right now what we are seeing in e-commerce only few players are having the Monopoly and they get to decide which agency will sell at what size zat if you trying to list your platform there significant amount of fees and zato controls everything revolutionizing the whole digital Commerce space anyone can list without any requirements and all types of Commerce it's not just one for example zato is Food Service Amazon provides certain materials that ISC this is one of the segments or one of the examples of digital public infrastructure what is digital public infrastructure see this can be a question what is digital public infrastructure there could be four statements this is a term which is mostly in news UPI is an example of digital public infrastructure Adar is an example of digital public infrastructure there can be number of examples what is DPI this is onc is part of example of digital public infrastructure what is public infrastructure or a public good something which is non-rival and non-excludable the whole idea about digital public infrastructure is that it is open access anyone can join participatory governance Open Access building innovation in the digital realm which is open to everyone is UPI open to everyone anyone can start an app on UPI anyone can join onc is it open access where you can join anyone can join without having any Monopoly this is all example of digital public infrastructure where you can't exclude anyone it's available for all use Adar for kyc is the idea clear these type of questions have to be prepared from this documents it's all about schemes and knowing the which part is eligible for example startups eligible eligible for example what is the benefit under startup India yes one of the biggest benit is taxfree for the first 10 years the number of benefits 3 5 10 regulations it's not just 10 it's number of regulations but how do you define a startup this is what the question here is reforms in logistics sector you have the unii unified Logistics interface platform mostly this is related to what the GTI shaki is single window clearance because what is the biggest problem in Logistics in India what is the problem in logistics if you understand the problem you understand the solution high cost high cost heq long just station not that the biggest problem is there's no multimodal connectivity or multimodal connectivity because there is no coordination between the various Ministry this is why unified Logistics interface platform this is why the GTI shaki model all of this so now you need to know the features GTI shaki came for 10 marks in Mains so all of this government schemes is what has to be prepared in detail this document is only giving the priority which schemes should be prepared first probability is 70 to 80% questions is the idea clear of what the industry Improvement is this is reforms for msme development act changed the definition udam portal udam assist platform PM vishkarma scheme what is about PM vishkarma Artisans pradan mry mudra yoga refinancing and Credit Credit guarantee fund trust for micro and Small industry what is credit guarantee credit guarantee collateral free loans emergency credit line This was done in pandemic credit for MSM part of all most problem of MSM is only two getting the credit and getting the technology so this is what the government is helping ha this year this was the question first question in Mains that how is manufacturing and MSM important what are the government steps for improving msme performance you have everything at one place this is how prelims and Mains question directly from this document that is survey direct MSM second question about digital inclusion they've talked about the third digital inclusion also see the next topic itself is digital infrastructure this was the second question in Mains this year this document remains important for Mains also India's digital digital public infrastructure India stack India stack has three things one is identity second is payments and the third is data digital public infrastructure identity layer is provided through Adar authentication payments Adar linked and also UPI Plus data you can use whatever data present in either the account aggregators or present with the government that is digil Locker identity payment and dat digil locker and the associated account aggregator schemes this is how it works resident unique identity using the identity for payments and also for data empowerment so now if you have to get loans whenever you have to get a loan you have to get all of your credit data which is before transaction data so this is the data layer whether with an account aggregator or whether with your locker identity confirm with what Adar EK kyc kyc also uses this layer and you can also perform payments this is what the India stack is about one example of digital public infrastructure in India having three layers identity payment and data aggregation is the idea clear what the meaning is facilitated GST this all talking about the recent governance reform especially digital GST GST is all online e invoicing eable gstn Network enabling factors 100% FDI demonetization and how the cost of data consumption has reduced because of increased amount of private investment entry of go cost of internet has reduced significantly mobile phones penetration increased and this is why government can provide most of the services digitally so it's happened because of the data consumption private sector investment that has happened demonetization increase the cash acceptance fir I PTM so this is what digital but if you see how PTM even if it has failed you have number of other payment options it's not just dependent on one this is what the democratization of the digital space that has happened because of cheap internet because it is not dependent on the success of just one player the number of players who are providing the same Solutions how are they providing the same solution because digital public infrastructure had the technology been controlled under the had been under the control of one player India would have seen problems open networks say you have seen that you have number of players who are providing the same services this is digital public infrastructure other key initiatives pradan mry Janan yoga what is jandhan Yoga jandhan Yoga is used to provide direct benefit transfers zero balance bank accounts opened by the government financial inclusion direct benefit transfer gbt using Jam Jan Adar and mobile for providing transfer aroga setu and koven apps this was done for vaccination highly successful PM e Vida what is e viya about see this is how you have you'll have questions e VI is about what digital what digital digital and PM sche government if it is Union scheme you will have prime minister this is an easy way to remember whether it is a central sector scheme or a centrally sponsored scheme or the name is for what bridge the learning Gap during pandemic an online app for Bridging the learning gap which happened during the pandemic because of work from home and also the open book exams that has created a very big learning Gap to solve that you you have PM with there so you can have a one statement question what exactly is PM e with there about credit creation is back status of the banking sector this is what we discussed Bank problem has been solved because how the government has brought in the IBC and the RBI also recapitalization has given more money to the banks to do this activity phenomenal growth non-bank food credit also increasing Bank credit to MSM is also increasing public sector Bank profit margins have come up because of the solution of that problem the three things which we discussed nbfc credit expansion is also growing because of the same reasons the steps taken to improve nbfcs is this the revised Scale based regulatory framework and ECA framework these are the two reforms which the government has introduced for the nbfcs apart from the various reforms which we discussed for banking this this is your Trend analysis of The NPS significantly increase from 15 onwards asset quality review significant increase and now we have solved Financial year 21 22 and 23 the npas have reduced significantly in the banking system the reasons which we discussed that resolution of loans has happened now what they have not discussed is how did the NBA reduce AG resolution did we have significant amount of writeoffs or not so there was significant writeoffs which have led to reduction of NPA right offs which are losses to the banks resolution did not give a significant recovery the initial cases gave significant recovery not the present cases so this is this analysis is missing in the document reforms by the government reforms by RBI asset quality review prompt corrective action IBC and corporate governments improved all of these reforms we have discussed financial markets to support the investment need needs of the growing economy this portion you can read from above not very important they've only talked about how the stock markets are performing because of better policies of sebi Market governance has improved and this has happened various facts for these schemes is what you can prepare here imput us to the bond market the RBI retail direct scheme what is retail direct scheme this was asked in UPS in 2021 government bonds buying directly at the RBI website this is what is RBI platform the retail direct scheme Sovereign green bonds what are sovereign green bonds bonds issued by the government specifically for investing in climate related projects regulations for new Investments and these reforms yeah this regulation is very important listed large corporates will mandatorily meet 25% of their financing needs through bonds 25% of the money which they are raising has to come from bonds making the capital bond market Rich more and more issuance being made so that people can invest more number of instruments coming in the market and the minimum ticket size for corporate bond investment has been reduced to encourage more investment both from foreign investors and also domestic investors this is what the sebbi has introduced regulations which can come in the exam or you can use in the Main's answer that how financial markets reforms have happened in the last 2 years safeguarding macroeconomic stability what is macroeconomic stability what do you understand by macroeconomic stability three things one inflation second controlling and third current account deficit now inflationary pressures have been consistently high in the previous 2 years what is the reason for that one due to the Russia Ukraine war the price of imports has increased significantly and second what is the cause of inflation monetary policy tightening inflation problem in food prices both rice and wheat season wheat season rainfall failure or too much rain what happened in Rice season problem of both less rains in some areas and more rains in other areas so both rice and wheat we had significant inflation because of variations in the climate so we had problems with food and the import prices increased because of the Russia Ukraine war further the war triggered by and that has now been extended by the global supply chain the prices will increase because of the significant problems in the external environment import prices for India will increase significantly and food prices but has India been successfully able to control inflation they have done because the inflation targeting regime by the central bank so we have Central Bank monetary policy tightening which have controlled the inflation and also the government took certain steps what steps were taken by the government steps taken by the government government for controlling food inflation had Levi export Bands then what else government cannot increase the interest rates administrative steps the government asked the FCI to sell grains in the open market open market sales scheme this is something which you should prepare open market sales scheme happened extensively in the last one year and the third step was the essential Commodities act the storage limits how much you can hold is what is controlled by the government this is how the government tried to ease down the food inflation pressures along with monetary tightening done by the Central Bank under the flexible inflation targeting regime is the idea clear the price stabilization fund also HED in controlling food inflation what is price stabilization fund for tomatoes and onions government used this fund this fund is under the ministry of Consumer Affairs and public distribution what this fund does is if there is any increase in prices of agriculture products the government is going to procure those products from the market and sell it at a lesser price in the market the government did it for tomatoes in the last season when the prices of tomatoes increased the government using the money in the price stabilization fund procured the tomatoes both from domestic and international markets and sold those tomatoes to the public at lesser price so you can have again a question on what is price stabilization fund who administers it and what are the objectives is the idea clear Global Financial markets post pandemic we still had a problem because of the geopolitical conflicts and accompanying sanctions just say imported inflation was seen in India India managed to keep it retail inflation below the several countries because of the government steps which had been taken strengthening buffers periodic open market scale releases preventing holding help to check the pressures along with RBI monetary policy tightening the steps which I just discussed are the steps taken by the government in the previous one year last year there was a question that central banks world over have increased the interest rates the reason given for this is because there was inflationary pressure seen in the global economy this is how this topic will be used for questions whether you understand how inflation happens and what were the causes of inflation and the steps taken by the government to control inflation this is the global price information just to give an idea that inflationary pressures were not just seen in India they were seen in other countries also and they were not successfully able to control it India was on the lower end the Consumer Price inflation across the various countries Human Resources growth with increasing welfare the third point which we talked about of improving the government welfare schemes that is providing inclusive growth is talking about long-term oriented efficient and empowering what the government says welfare what what we are trying to create these three things are important in the previous eras the government were focused on creating a dependency of the people this government is trying to create that people are dependent not on the government for these help the government will create certain assets which is going to help you provide the welfare to asset based empowering technique which is going to be long-term this is what the government says we are trying to do it through DBT you should not be dependent on the government for money every time DBT is going to provide you money to build an asset one of the schemes where they talk about this is is the self-help group the scheme implementing self-help group is the nrlm and the term being mentioned by the government here is training the self-help groups for better economic activities what is the idea of self-help group this is also asked previously last year they asked a question on self self help group the first statement was selfhelp group was promoted by State Bank second was self-help group the whole liability of the loan is on the group and not on the individual what is the idea here repayment of individuals was low so the government is providing a loan to the group things which the government is doing here is first the government is going to build certain Financial savings ability second you are going to get a loan using this you're going to start an economic activity or economic activity sustainable we are further going to provide you this is what is and the government is saying lakpa Didi how much money is that talking about 1 lakh per month or year one lakh per year how the government is going to provide skill level to the self-help groups is the idea clear the whole idea is inclusiveness through long-term oriented efficient empowerment by providing direct benefit transfer this is why important is to provide them water connections important is to provide them gas connections the important is to provide them house asset build direct dependency depend this is why this scheme is also important here not just providing the basic amenities for a better standard of living but also trying to improve the standard of living by providing economic activity so when we talk about msme also the scheme is all about provision of credit and provision of skill this is the approach to welfare which was not present this is why they say efficient Equity with efficiency is what we are trying to bring in Universal targeting and efficiency by bringing through digital infrastructure this is what they say Equity with efficiency universalization along with getting the money and output outcome monitoring framework this is also important what is output outcome monitoring framework major schemes we have the output outcome monitoring framework this is very important for accountability output outcome budget so what has happened for most of these welfare schemes earlier what was happening is whatever the line Ministry was there was a scheme and there was money involved this is what how the budget was designed a particular scheme gets particular money but now what is happening under the output outcome framework is the scheme is getting particular money what output are you going to achieve with that scheme for example it is J Jan Mission and you have G given 5,000 CR to 5,000 CR water connection output Target now this is not just the outcome which you are looking for that piped water connection should also be utilized that is what is the outcome this is the intended objective which you tried to achieve so both of them will be presented along with the budget to tell what exactly is the output expected out of the money which we are spending and output change create economy that is the outcome so what we are trying to do is we are trying to have accountability of the scheme in terms of what it created and what impact it created this is the output outcome framework Niti AOG is trying to develop this output outcome framework for maximum government Ministries so that you have better accountability what gets delivered this is very important because the government is trying to universalize the basic amenities they are trying to improve the efficiency with which the product is being delivered empowerment longterm efficiency delivering product whether the asset reaches the public or not what the outcome of the asset is userfriendly dashboards man management information systems digital infrastructure to see check the monitoring of the implementation example another is manrega e attendance and all of those schemes involved here investment in Social enablers imun the sanitation program and also the vaccination programs open deification atal pension yogena PM so what exactly they've done is they've mentioned the complete schemes here the new welfare approach across various indicators Health what the government has done a B ji kers decline in TB revamped education National Education policy and whatever the total government education schemes large scale Skilling Cal Vias National apprentiship entrepreneurship mudar yoga Swan nidi scheme standup India basic amenities SW Bharat mission that is for sanitation AAS yoga jjan uwala and Saga scheme Saga what is Saga about electricity distribution Social Security jhan yoga Jan Joi and suraka three schemes here atal pension janji yoga and suraka Bea yoga so that means use it in Mains for writing complete answers and also for prelims need to prepare all of them what are their objectives and what are their features women led development apping the gender Dimension gender Dimension two things the government is talking about here the lfpr increased to 37% and the gross enrollment level in the secondary school 75% gross enrollment rates and labor force participation rate has increased now what are the increased reasons for this also they talk about the passage of the women reservation Bill features of this prepared under bity now how this economic empowerment of women has happened the whole scheme of self-help group women L self-help group access to financial service to these self-help groups D upad National rural livelihood mission where it talks about not just creation of self-help groups but also providing support in terms of both credit and skill rest of the women schemes b b Sami mudra standup India what is standup India women in standup India it is categorizing three women SC and SS providing loans to women sc's and SS this is the criteria how they will Target aasam K viasa is the idea clear what exactly is the welfare schemes and how you have to prepare across sectors employment situation in the present decade employment rate just the facts important for Mains employment rate has declined to 3.2% in the last year and the labor force participation rate has increased to 57.9% so two major facts 3.2 unemployment rate and labor force increase is 57.9 women labor force has increased along with youth facts of women are important here these facts this part of the document is important last part that how the women labor force participation has increased increase from 23% in 17 18 to 37% now this has happened because of two major categories share of self-employment and agriculture in self-employment it is mostly the employed category and unpa helper maximum increase unpaid helper not here and agriculture what they say is agriculture from the lowlevel economic activity to now higher skilled is being done why this is being done because male Workforce is tilting away from agriculture the women Workforce is improving so women are moving from lower end of the value chain in agriculture to higher end of the value chain in agriculture in self-employment it is not just the employment category it is mostly increasing in unpaid family work but it is significantly increasing from 1718 to presently that is 2223 37% but quality is what matters this is the female labor force part ipation rate feminization of Agriculture how exactly labor agriculture government efforts in skill development Cal viasa already mentioned several times in the document now what exactly is the external sector I'll just give you a brief overview of the external sector they've not mentioned various schemes here just a brief overview the balance of payment accounts has two that is what are the heads under current account we have visibles that is trade in Goods then service trade what else the investment income and third is remittances what they've tracked the performance here is that trade in Goods the exports and imports Imports have seen a increase in the last year and exports have seen a decline but if you compare the current account deficit with the last few years the current account deficit has improved it is still negative but improved because we have got significant benefits in service export and remittances these two have been major pluses this has been negative to overall current account deficit is still negative but this is negative me Improvement is shown so service because of the problems in the external sector exports quality because of the subdued Global demand inflation plus disturbances import price increasing under Capital account we have seen again plus significant Surplus because we have seen Surplus in Investments last 6 months there was problem in the foreign portfolio investment but in the first half we have seen Improvement last 2 3 months this has seen an change in Direction FDI is still increasing FBI which was outflowing in the previous year is now seeing an inflow so this that direction has reversed and now we are seeing positive Investments coming from outside investors better performance on loans loans still being taken they have not mentioned how the status of loans has changed major they have talked about investment only and whatever Surplus we have built in the capital account over the negative on current account has helped us build significant amount of Foreign Exchange reserves foreign exchange reserves roughly around 600 billion which is enough for they've talked about the adequacy of reserves also that whether reserves are enough or not these reserves are covering roughly 10 months of imports and the reserves are covering for 98% of the debt the total debt which India has is increasing but 98% of the debt is being covered by Foreign Exchange reserves that means we are stable on this end so current account deficit is definitely a problem considering the changing external environment but this this segment is increasing and this segment is increasing Surplus on the capital account has helped us build enough foreign exchange reserves which are for 10th month Imports and covering 98% of the debt because recently there have been several articles talking about the unhealthy debt position of the government debt position on the external front is not a problem because only 18 to 19% of the debt is is shortterm most of it is long-term and secondly most of the debt is covered by how much reserves we have so we would not have a problem of settlement of debt on the balance of payment end so on the balance of payment end yes we have a problem in exports of goods we need to what the document says exports we need to do two things we need to diversify in terms of what goods we are selling and also the destination both the things we need to diversify to improve the current account balance for exports this is what the government is trying to work about improving the diversity here and destination also important here is the regional trade agreements we are trying to finalize the bilateral trade agreements which we had recently finalized with two countries which two countries Australia and UAE two more countries which try the country is trying to end the regulations FDA signed with regulations come F we are critically trying to move ahead one is Canada and the other is UK UK and EU both of these are stuck on few goods which the government is trying to remove recently there has been change in stance also that will remove the regulations because no longer are we trying to think about G getting more revenue from Imports what we need is export competitiveness places to sell and goods to diversify this is what has been talked about in the external position export of services business services and Financial Services have experienced double digit growth so service exports have always been doing good remittances and service exports Don growth is positive 7% for service and remittances 4.5% largest recipient of remittances in the world one feature which they mention is remittances it is mostly coming from towards High skilled jobs in high income countries early it was coming mostly from low skill jobs now it is coming from high skill jobs Capital account negative balance on the current account is compensated by the positive balance on the capital mostly it is happened because of higher inflows of foreign investment the positive on the foreign investment P make in India the reforms which we have done for our private sector investors are also working for FDI this is why FDI has increased FBI which was reversing now has 15 witness highest but now it is also reversing last 2 years it was outflow now it is inflow in the first half of financial year 24 inflow of 28.8 billion from an outflow of 7.8 billion in the last year so this has significantly changed which was happening outflow now it is inflow FBI we have done certain reforms permitted them to participate in currency derivatives on boarding of FBI regulatory reforms have been made significant this is why it is increasing exchange rate exchange the external position because of the current account deficit and current account Surplus depreciation last one year now why the depreciation happened in last one year the price has moved to around 83 rupees what are the reasons India has lost competitiveness in rupees in the last one year we were somewhere around 70 72 now it is 83 what has happened in the last one year what are the reasons why dollar or rupee has lost value what is the biggest reason for outflow of dollar this is the demand and supply curve supply has reduced what is the reason for Supply just now told fpi reversed fpi outflow happened in last one year why the outflow because of interest rates increase in us also the demand has increased if the demand for dollar is increased why would the demand for dollar increase this is why 75 say see the them larger jump because of the too much uncertainty on the geopolitical front started with Russia Ukraine war now the Israel plus also the Yemen threatening the transportation routes this is why the cost of imports increase the demand for imports will increase this is why pressure on the rupe to depreciate this has happened in the last one year both from supply and demand end foreign exchange reserves 6 uh 62 3.2 defer 98% of the debt is being covered through the reserves this graph just to show the various parameters whether it is enough or not the total external rate of India is roughly around 18 to 19% fell to 18% September 2023 this covers 98% of the debt the foreign exchange to external debt it's cover roughly more than 95% total debt in US billion 18.6% International Investment position has remained stable but it is still negative what is International Investment position International Investment position what we discussed is balance of payment account what is International Investment position the assets which we have outside with respect to rest of the world having in India whatever assets the rest of the world is holding in India with respect to what assets India holds outside since more rest of the world is holding in India as opposed to what India is holding outside the international investment position remains negative it is stable but it is negative the assets which we have outside with respect to what outside people have in India this is what is the net International Investment position this is different from balance of payment is the idea clear asset and liabilities which we have outside as opposed to what the other country has in India this is negative climate action certain steps taken by the government for building resilience these are the steps again to be used in Mains schemes to be asked in prelims ndcs have been completed new non-fossil fuel capacity has increased in the country solar has increased multiple times energy capacity increased by more than 25 times schemes introduced solar Parks Ultra Mega Parks rooftop solar green Energy Corridor and the two PL schemes this is what is to be prepared from climate GS3 second part Jo how the generation capacity for renewable is increasing and the schemes which are responsible for this targets achievements and revised targets again means second part the national action plan on climate change Adoption Fund and performance achieve and trade this is performance achieve and trade is for Energy Efficiency trading for Energy Efficiency so this is roughly the schemes itself which they have covered in climate change are done what the last part is the last part which is important that there are geopolitical conflicts and the four challenges and what are the challenges which India has is facing is one Skilling learning outcomes Health Energy security these are the areas which they have mentioned for improvement in the complete analysis of the Indian economy they mentioned only positive things these are the potential areas for improvement specifically the skill and learning outcome msme and gender and if you pick all of these things you'll find out the question is all about inclusive growth talks about msme talks about G gender and talks about skill learning health is the idea clear how the document has to be prepared preparing all the schemes rough idea about what happened from 50 to 2014 and then 2014 onwards these Frameworks you can use in Mains also for writing complete answers and this document is very important for Mains because you have direct questions from this is the idea clear it was very short on facts or Trend analysis which the previous documents have been but since it was an election year this is why the complete document is not here if you read the entire document or even this and some portions have been missed if any of the term doesn't make sense or you do not find information on any of the schemes you can send an email here if any of the terms otherwise I've covered most of ite problem this is the email address thank thank you huh Sur see what they try to talk about is how much jobs were created bigy fourth Industrial Revolution fourth Industrial India still we have a lot of potential to create jobs because we have significant potential in manufacturing so you talk about Universal basic income when your economy is saturated low wages cheap labor is still are very positive with India so we can either grow in lowend manufacturing or even lowend services for example RoR Rajan he's presented a new book he says manufacturing China you invest in Services provide skill English speaking skill and smaller skills to people so that they can invest here if technology changes so fast that you cannot catch up with skills then Universal basic income will become an idea here manufacturing a lot of Scholars now say should not be manufacturing should be services but job potential what we are trying we have not the policy or the infrastructure has not been aligned with that type of a growth to Reg if you see what they talked about then we have a question whether Universal basic income becomes a reality or not this is why you'll never find a debate in India on universal basic income Universal basic income is something you can start section direct because you will not be able to create jobs for for everyone but that is still a long way to go because how much transfer will you do and to whom will be the question about winning elections what should they project the question is not this what model of development will they project they already said this in 2019 elections the government brought it PM kissan 6,000 rupees so what extra would they promise what exactly will they do that they capture people's imagination and come to power whatever they'll say the part is ready to do the political benefits be what limited Universal basic income because what you are giving we can also give then why elect you if you are saying 6,000 the political benefits Universal basic income plus Universal basic income has fiscal implications where will you find the money or you'll find taxation sources how will you get the money financing is also a very big question in a country as huge as India financial implications will always play a part thank you hello sir uh so just a uh small doubt so you said from 1980s to 1990s India has actually witnessed High rate of growth and so from 1990 we had a problem and we opened up the economy so can we say that India has not really witnessed at least even two decades of economic growth uninterrupted economic growth because after 91 the problems were not just domestic the problems were also external because now you're integrating your economy with the rest of the world so if any problem happens there you will have a problem because you're integrated 97 2008 2019 so uninterrupted growth would also depend on how the global economy is doing now okay so basically I've read somewhere that China has actually witnessed three decades of uninterrupted economic growth see China questions numbers are always debatable because China we don't know what the true picture is for example right now China is facing a meltdown there's financial sector problem one of the biggest housing developers is now facing a problem we yet don't know what the impact on the Chinese economy has been so we can't say that plus 1980s what the era of globalization was and 2010 onwards what the era of globalization that has been a major difference China opened up in 1980 so there every country was PR globalization India opened up 2000 onwards itself we get investment but after 2008 a lot of De globalization has also started so this is one of the challenges ahead of India that now you don't have a very favorable external climate exactly so this is why you cannot have uninterrupted but the document completely says in a slowing economics the prospectives of the world India has still been growing 7% that means we have been resilient and the sector performance is what we talked about the resilience okay so and one more doubt is that you spoke about the threads portal right um so in that example what you have given the msme the particular firm will only get 450,000 from that bank this is discounting yes yeah so and what about the full amount they are supposed to bank will take the full amount from maruti and what about the firm the firm is in need for money why did I to take the loan I could have taken the full amount from The Firm itself those who are in need of money is the one who's going to pay the interest okay but uh MSM is in need for money so it is going to the bank so he the MSM has to pay the interest if the msme is not in Need for money then I can wait for the invoice to be cleared okay so basically msme is getting money but not the actual money what they I was in Need for money because I have a cash flow problem this is why I went to the bank now how do I get the loan to a bank because I'm I only have an invoice so invoice based loan can be done through threads okay because the need for money came from msme and why the msme went why not the company itself because the company says if you not someone else will supply so you have to manage it this is how it works so and one more doubt is that you said the I mean the document talks about the decline of an unemployment rate so the unemployment rate has been declined uh but where actually the employment is being created apart from the construction sector yeah this is what we discussed where is the employment happened for women it is happened in the self-employed category where they are own account creators or the unpaid family help or they are increasing in agriculture so we don't talk about in India the problem is not unemployment the problem is quality of employment government because people will need money for their daily sustainance they will have to work multiple jobs what type of job they are getting is what the question in India for example document also says gig workers employment has increased but now what is the quality of job they have the question is always about quality of job so when we say 23 to 37% women have increased in the labor force what kind of work are they doing unpaid family labor or agriculture now do you classify these two activities as good employment or not that is a question this is why they say that one of the challenges for IND is bringing women at par how do you do that because right now you're doing it in the form of unpaid family work which is not very good 38 to 45% is unpaid family work no apart from women also where else actually this is by construction sectors only in the construction informal sectors is where the employment is increasing and that to multiple types multiple roles you have to perform multiple jobs you have to do gig workers that employment number is rising okay what the one of the facts you'll read in the document they say the percentage employment in the regular salary de class that as a percentage has fallen in absolute number it has increased but percentage wise it has fallen that means the increase in employment is happening only in informal sector where regular wage of salary class is not increasing percentage of total absolute they're increasing but as a percentage they're not increasing that means informal labor is increasing at a higher Pace as compared to formal wage okay so the what do you say construction sector that is the perfect example construction sector is seeing the major changes along with G economy most of it is informal then we talk about quality of work this is why the first challenge they mentioned here is what skill this is skill gets you the formal employment learning Gap learning Gap gets you the formal employment not the this informal jobs construction and all so and one more uh thing is that in the industrial sector you spoke about uh PL and make in India initiative uh when it comes to PL there are some certain Japanese and Korean companies which claim that their plis claims are not being this is what the analysis of p p says that money will be paid but now you're involving the bureaucracy in selecting the firms whether the targets are achieved or not and then paying the money on time so that means involvement of bureaucracy in all three steps you will have delays so how effective is PL and makeing India's initiative this was a question right now between the the minister of State for it Rajiv Chandra Shar and raguram Rajan so what's your point he says what will you will not write my point I mean as the document says PL in Mobile phones has been a very big success because export for mobile phones have increased now what the counter argument is what are we doing in Mobile phones if you see the whole value chain we are only assembling the mobile phones so now you are paying significant amount of money to Rich companies just to assemble the phone so what exactly are you getting you are creating two things if you are creating jobs that is the lowest end of the job and secondly if you're assembly that means there's no technology so why are you paying that money to Rich companies to do the most easiest of things so PL is successful in terms of two things what technology it gets you and second what jobs it creates for you and right now it's a very nent time period very all of the 14 sectors have been increased in last two years itself so after some time we'll try to ass certain what did we get mobile manufacturing is seen as a success because the export of mobile phones from India increased significantly it created jobs not to the potential and secondly but it did not bring in any technology so and make in India is only the assembling in India is happening or even the this is what I said you will see what value chain is coming to to India for which PL is being claimed this is what will determine the efficacy of PL but right now the government says if you improve the regulatory environment and the infrastructure for all not all firms are capable to compete on a global level so if someone starts today for competing with any part China vnam other countries already have so much success there you will never be able to compete with their cost margins so what you do is we'll give money to only few selected firms they have the capacity to compete but now that selected firm brings in the jobs and brings in the technology or not that is a question mark now this is something has to be seen in the future so this is why P has a lot of positives but has to be checked also what benefit it is giving apart from implementation challenges whether the firms who complain they're getting money or not that will always remain a challenge whether you're able to execute it or not okay sir uh about the external sector you said that there's 600 billion dollars we have as reserves reserves so uh uh that covers 10 months of import so uh we can simply interpret it as uh if we stop our exports for 10 months all the if we have if we can't if we have any earning on dollars the we will be able to buy imports for 10 months now why this is important because you need to give confidence to the people who are selling material to you that you will be able to do business you will not have a problem of dollar anyhow you don't have a problem of rupee you can print any amount of rupee but how do you get a dollar so that foreign exchange reserves is a confidence building measure that we will always have dollar to pay for your Imports you should continue doing business even if we are buying more than what we are selling so if we have to repay our debts or if we have to pay our Imports we have 600 billion of reserves so any day the central bank will sell dollars we'll buy the rupees we don't have a problem of rupee we always have a problem of foreign exchange this is what the confidence will come from The Exchange reserves this is why we always talk about how much debt it covers and how much import it covers because our two liabilities to rest of the world is Imports and repayment of debt thank you sir that's it thank you efficient planning and effective follow through are the twin pillars of a robust exam preparation strategy in an intensely competitive environment like the upsc CSC meticulous planning and a strong initial push are of Paramount importance Avail the chance to gauge the competition Nationwide and strengthen your exam preparation with the vision is all India GS prelin open mock test 3 the test offers key features like all India ranking to gauge your standing among aspirants Nationwide Vision is post test analysis for a comprehensive 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