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Prime Minister inaugurates the Hindustan Urvarak & Rasayan Ltd (HURL) Sindri Fertilizer Plant at Sindri, Dhanbad, Jharkhand.

PM Inaugurates HURL- Sindri Fertilizer Plant in Jharkhand

• Revival of fertilizer plants: The plants of  Ramagundam, Gorakhpur and Barauni along with  Sindri have been revived and operational with plans for Talcher Fertilizer plant being operational next year.
  • Together they will produce  60 lakh metric tonnes of urea 
• Hindustan Urvarak & Rasayan Limited (HURL): It is a Joint Venture Company of National Thermal Power Corporation Ltd (NTPC), Indian Oil Corporation Ltd (IOCL), Coal India Ltd (CIL) and FCIL
  • The company was incorporated in 2016 and revived the Sindri Fertilizer Unit by setting up a New Ammonia-Urea Plant with installed capacity of 12.7 LMT per annum. 

• Significance of the HURL- Sindri Fertilizer Plant

• • Atma nirbhar in the urea sector: The government is aiming to revive the closed urea units of Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizers Corporation Ltd (HFCL) to augment the availability of domestically produced urea.
  • Streamlined supply of urea: The plant will ensure adequate supply of urea to the farmers in the state of Jharkhand as well as West Bengal, Odisha, Chhatisgarh, Madhya Pradesh and Bihar. 
  • Economic  development: The plant will boost the  overall economic development in the region including development of infrastructure like roads, railways, ancillary industry etc
  • Employment: The plant would provide 450 direct and 1000 indirect employment opportunities in the region and the MSME sector will be developed with  vendors for supply of various goods for the factory.
  • Self Sufficiency: It will provide an impetus to the local farmers by timely supply of fertilizers and extension services and also help in reducing imports.

What Are the Challenges in the Indian Fertilizer Sector?

• Import Dependency: India imports both crude and manufactured fertilizers as well as importing raw materials such as rock phosphate, ammonia, and phosphoric acid.
  •  In FY2022-2023, India imported fertilizers worth over 1.38 trillion Indian rupees.
• Imbalanced Nutrient Application: The indiscriminate usage of urea over other nutrients affects  the nutrient profile of the crop raising  concerns about soil health and agricultural sustainability.
• Subsidy Burdens: Fertiliser subsidies in addition to adding up the  financial stress for the government also leads to  leakages through smuggling for other industrial uses 
• High cost of handling and management: The storage of liquid fertilizers requires high capital investment in the smart storage system as they are soluble in water.

News source: PIB

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The Financial Intelligence Unit-India (FIU-IND) imposed a penalty on Paytm Payments Bank Ltd concerning the violations of its obligations under the PMLA.

Financial Intelligence Unit imposes Rs 5.49 Crore Fine on Paytm Payments Bank

Issued by: The order was issued  by the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act (PMLA), 2002 read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005

• Charges: The review was initiated because of allegations of money Laundering by entities engaged in illegal activities like organizing and facilitating online gambling etc through bank accounts maintained with the Paytm Payments Bank Ltd.

The Financial Intelligence Unit-India (FIU-IND)

• Established: It was set up by the Government of India in 2004 
• Objective: It acts as the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
• Nodal Ministry: Ministry of Finance
• Line of Command: FIU-IND is an independent body and reports directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
• Personnel: It has a sanctioned strength of 75 personnel, FIU is a multi-disciplinary body with its staff inducted from various agencies as under, 
  • Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs and Intelligence agencies.

• Function of Financial Intelligence Unit-India (FIU-IND)

• • It is responsible for coordinating and strengthening efforts of national and international intelligence, investigation and enforcement agencies in pursuing global efforts against money laundering and financing of terrorism.

News Source: PIB

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Recently, the Union Home and Cooperation Minister, started the National Urban Cooperative Finance and Development Corporation Limited in New Delhi.

About NUCFDC: An Umbrella Body For Urban Cooperative Banks

• National Urban Cooperative Finance and Development Corporation Limited is an umbrella body for Urban Cooperative Banks.
• It supports the goal of ‘Sahakar se Samriddhi‘ to promote self-reliance in India.
• Objective: Its aim is to modernize and reinforce the Urban Cooperative Banking Sector.
• Features: It will also function as a Self-Regulatory Organization for the sector.
  • It will offer specialized functions and services to cooperative banks.
    • It will facilitate communication between banks and regulators, and tackle challenges encountered by Urban Cooperative Banks (UCBs).
  • Certificate of Registration (CoR) from RBI: This umbrella body has been granted a Certificate of Registration by the Reserve Bank of India to operate as a Non-Banking Finance Company (NBFC).
• Significance:
• • Economic Growth: It aims to support the urban cooperative banking sector. By doing this, it helps small farmers and other weaker sections indirectly in the expansion of their economic activities. 
  • Facilitates Policy Making: Since NUCFDC acts as a coordinating unit between banks and regulators, it helps state and central government in making policy based on the ground reality of the sectors. 
  • Financial Assistance to UCB: It aims to raise capital and intends to use the capital to support Urban Cooperative Banks and develop a shared technology platform.

Benefits

• Technological advancement: This organization aims to incorporate new technology in the urban Cooperative Banking Sector which will help in fast coverage of the work. 
• Technological platform: It will Provide a technology platform that will improve service offerings, reduce costs, and address technology constraints.

News Source: AIR

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During its Sixth Session in Nairobi, Kenya, the United Nations Environment Assembly (UNEA) adopted a resolution on sustainable lifestyles submitted by India.

• This resolution is co-sponsored by Sri Lanka and Bolivia. 

Resolution on Sustainable lifestyles by UNEP

• LiFE Concept: The resolution embraced the concept of LiFE (Lifestyle for Environment), envisioned by Hon’ble Prime Minister Shri Narendra Modi. 
• Three Dimensions of Sustainable Development: The resolution reaffirmed the commitment to the 2030 Agenda for sustainable development. 
  • It emphasizes that education and awareness are crucial for sustainable lifestyles in harmony with nature.
• Role of Behavioral Changes: Recognizing the potential of behavioral changes, the resolution highlights its contribution to sustainable development.
• UNEP’s Role: The resolution has requested the United Nations Environment Programme (UNEP) to support Member States in developing and implementing national or regional action plans for sustainable lifestyles.
• Promotion of Education and Skill: This resolution promotes education and skill because education and skill accelerate collective efforts towards sustainable consumption and production. 
• Awareness Initiatives: This resolution seeks to empower citizens to make informed decisions. For it, it encourages member states, international organizations, and other stakeholders to create evidence based conditions and promotes collaboration between private and public sectors. 
• Promotes Country to adopt sustainable lifestyles as per the national requirements:The resolution observes that each nation knows its priorities and national circumstances well. 

About Mission Life

• Mission LiFE was launched by the Honorable Prime Minister on October 20, 2022,.
  • It promotes an eco-friendly lifestyle centered around mindful and purposeful use, rather than thoughtless and wasteful consumption.
• Objective: The mission aims to shift from a “use-and-dispose” economy to a circular economy based on conscious and intentional consumption.

News Source: PIB

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Recently, an article was published in the State of India’s Environment 2024 by the Centre for Science & Environment on the ‘Rise of Invasive Alien Species’.

Invasive Species in India: Key Finding of the Study

• Variability in Invasiveness Across Taxonomic Groups:
  • The percentage of established alien species known to be invasive varies across taxonomic groups, ranging from 6% of all alien plants to 22% of all alien invertebrates.

• Impact of Invasive Alien Species on Global Extinctions Reveals Alarming Trends:
• • Invasive alien species, either solely or in conjunction with other factors, have contributed to 60% of recorded global extinctions.
  •  Alien Plant Dominance on Islands: 
    • The global extinctions comprise around 90% impact & local extinctions comprise around 9% of the documented impact on islands.
    • In one-fourth of the world’s islands, alien plant species surpass native ones in number.
    • Over 1,200 local extinctions have been attributed to at least 218 invasive alien species.
• Translocation Due to Human Activities: Approximately 37,000 alien species globally, with 200 new species recorded annually. 
• Projected Increase in Alien Species: It is estimated that by 2050, the total number of alien species will be 33% higher than the number observed in 2005.
• India under Threat: A recent study published by the Journal of Applied Ecology highlights the significant threat posed by invasive species in India.

Major Invasive Species Around the World & Affected Regions

Invasive Alien Species Initiates Biological Invasions

• Accelerated movement of plants & animal species driven by human activities or inadvertent transport through global trade initiates Biological invasions. 
  • These invasions threaten biodiversity, driving thousands of species toward extinction.
• It is one of the top five drivers of environmental change globally.
• Economic Costs: Estimated at $423 billion globally in 2019
• Social Implications: Disproportionately affecting marginalized communities. 
  • These impacts exacerbate existing inequities, posing threats to livelihoods and exacerbating environmental degradation in already vulnerable areas.

Invasive Alien Species threats in India

• Regions Affected: A recent study highlights the significant threat posed by invasive species in India, with 66% of the country’s natural systems affected.
• Economic loss: The economic loss due to biological invasions in India is estimated to be as high as $182.6 billion.
• The study identifies critical drivers of invasions and highlights vulnerable regions. 
• There is a need for context-sensitive restoration efforts and holistic policies to address the issue effectively.

News Source: DTE

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Recently, Data released by the National Statistical Office (NSO) showed that the difference between the two sets of growth rates widened to a 10 Year high in Q3 (Oct-Dec 2023-24).

Q3FY24: Indian GDP Surges to 8.4% While GVA Growth Moderates at 6.5%

• Indian GDP vs GVA Growth Rates: Data showed that During Q3FY24, India witnessed a surge in GDP growth to 8.4%, surpassing expectations, while GVA growth moderated to 6.5%. 
• Divergence is Due to A sharp increase in net taxes & fall in subsidies, underscores the complexity of economic interpretation.
• The difference between the two growth rates widened to 190 basis points in Q3 from 40 basis Points in the previous charter.

Reasons Behind Indian GDP Surge in Q3FY24? 

• Due to Variation in Sectoral Contribution:  

  • Key sectors such as Manufacturing and Construction exhibited robust growth rates of 11.6% and 9.5%, supported by Public capital expenditure. 

• Due to growth in Tax Collection: 

• • Luxury goods and services, unlike essentials, contribute significantly to tax revenue, highlighting the influence of taxation policies on economic indicators. 
• However, with Subdued private consumption at 3.5% in Q3, and a Decline in government spending by 3.2% in Q3, from a 13.8% growth in Q2 & the agriculture sector witnessed a contraction of 0.8% in GVA growth in Q3, down from 1.6% in Q2. complicate the overall economic picture. 

What Is GDP?

• GDP represents the total value of goods and services produced within a country’s borders over a specified period, offering a comprehensive overview of  the country’s economic health.
• Components of GDP: It encompasses private and public consumption, government expenditures, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. 
• Calculation of GDP: GDP = private consumption + gross investment + government investment + government spending + (exports-imports)

What Is GVA in Economics?

• GVA measures the value of goods and services produced in a specific area, considering the value added to a product. In India, GVA is measured at ‘basic prices’.
• Calculation of GVA: It is  calculated by deducting the intermediate value of consumption from the total output produced, reflecting the added value generated during the production process. 

GDP Vs GVA

• GDP being derived from GVA and adjusted for taxes levied by governments on products and subsidies provided by the government. 
• GDP = GVA + Taxes on products – Subsidies on products. 
• GDP is >> GVA, due to the higher amount of taxes received compared to subsidies provided by the government.

Conclusion

During Q3 of FY24 in India, the deviation in GDP and GVA shows how economic recovery is complicated. Although overall GDP looks strong, looking at GVA and specific sectors gives a more detailed picture. Dependence on public spending highlights the need for balanced and sustainable growth for India’s economy.

News Source: The Indian Express

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Exercise Samudra Laksamana is conducted at the coast of Visakhapatnam.

Exercise Samudra Laksamana:

• It is a bilateral maritime exercise conducted between the navies of India and Malaysia.
• Participants: Indian Naval Ship Kiltan and Royal Malaysian Ship KD Lekir Aim: To strengthen bonds and enhance interoperability between the Indian and Royal Malaysian Navy.
• Phases: Conducted in two phases: Harbour phase and Sea phase.

Other Maritime Exercises of India: 

• IBSAMAR: It is a maritime exercise held by India, South Africa, and Brazil.
• SIMBEX: India and Singapore.
• SLINEX: India and Sri Lanka.

News Source: PIB

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Recently, Sri Lanka and India signed the contract for building Hybrid Renewable Energy Systems in Delft (Neduntheevu), Nainativu and Analaitivu islands off Jaffna peninsula in the island’s north.

Geographical Location of Nainativu Island/Nagadeepa Island:

• It is located in the Palk Strait, the stretch of sea that separates Sri Lanka from southern India. 
• It’s close to the famous island of Delft (also known as Neduntheevu). 
• It is nestled off the coast of Jaffna Peninsula in Sri Lanka’s Northern Province

Significance Of Nainativu Island

• Historical: Some historians suggest the  island is mentioned in the ancient Tamil Sangam literature where it was mentioned as Manipallavam.
• Religious: It is religious for Hindus and Buddhists. 
  • Nagapooshani Amman, one of the prominent 64 Shakti Peethas is located here.
  • ‘Nagadeeda Vihare’ which is believed to have been visited by Buddha after enlightenment to settle a dispute between two “Naga’ ‘ kings. 
    • The stupa is said to contain the throne which began the stand-off, a Buddha statue, museum and sacred Bo tree.

News Source: The Hindu

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This Article is based on the news “Another major boost to Atmanirbharta in defence: Ministry of Defence signs five major capital acquisition contracts worth Rs 39,125.39 crore”  which was published in the Pib. Recently, the Ministry of Defence signed five major capital acquisition contracts worth Rs 39,125.39 crore marking a significant boost to the Make in India initiative and indigenous capabilities in defence.

Ministry of Defence Signs Five Major Capital Acquisition Contracts Worth Rs 39,125.39 Crore

• Procurement List: 
  • Aero-engines for MiG-29 aircraft (HAL)
  • Close-in Weapon System (CIWS) from L&T.
  • High-Power Radar (HPR) From L&T.
  • BrahMos missiles and Shipborne BrahMos system from BrahMos Aerospace Private Limited (BAPL)

Need for Atmanirbharta in Defence Sector

• National Security at Stake: 

  • India relies on a foreign country for critical defense platforms and equipment. Due to a shortage of components and assemblies, imported equipment poses various maintenance, repair, and overhaul (MRO) challenges in India. This delay could Undermine India’s national security and vital strategic interests. 
    • Example: In 2020, tensions rose between India and China in Galwan Valley.  India was facing a shortage of critical defence equipment.

• Strategic Autonomy:

• • Over-reliance on a single supplier for military hardware can force India to bend to their demands to maintain that supply.  By diversifying its sources through domestic production, India reduces pressure from any one supplier and strengthens its position in negotiations or alliances.
    • For Example: India purchased the S-400 missile system from Russia. The US has threatened sanctions on India for this deal, which puts India in a tough spot, caught between a long-standing partner and a new strategic alignment.

• Global Uncertainties:

• • A global pandemic like Covid-19, the Russia- Ukraine and  Red Sea Crisis, could disrupt supply chains, making it difficult to import essential defence equipment.
    • For Example Nearly 60% of India’s equipment comes from Russia, which is involved in hostilities in Ukraine. Atmanirbharta in defence could help mitigate such risks by developing domestic capabilities for these components.

• Reduce Fiscal Burden: 

  • India is currently the second-largest importer of weapons in the world after Saudi Arabia. 
  • India constantly upgrades its military equipment. Initially, indigenous production may seem expensive. However, over time, the cost of research, development, and manufacturing can be lower than continually importing equipment and spare parts subject to foreign pricing.
    • Example: The Light Combat Aircraft (LCA) Tejas is an indigenous fighter jet developed by India. While the initial development was costly,  the long-term production and maintenance costs are expected to be lower than continuously importing fighter jets.

• Employment Generation:

• • A thriving domestic defence industry creates high-skilled engineering, manufacturing, and research & development jobs. This boosts the economy and creates a skilled workforce for continued innovation.
    • For example setting up a Defence industrial corridor in Uttar Pradesh aims to generate 41,667 employment opportunities.

• Combat Capability:

• • Atmanirbharta in defence fosters innovation in designing and developing military equipment tailored explicitly to India’s unique geographical and security needs. This can lead to a more effective and modern fighting force.
    • Example, the DRDO is actively developing indigenous defence technologies like the Akash surface-to-air missile system to meet India’s specific air defence requirements.

Challenges in Achieving Atmanirbharta in Defence Sector

Here are the some major challenges in achieving atmanirbharta in defence sector;

• Technological Gap: 

  • Developed nations possess a considerable lead in high-end technologies like advanced aircraft, stealth materials, and next-generation weaponry. Bridging this gap requires substantial Research & Development (R&D) investment and nurturing a robust domestic innovation ecosystem.
    • For Example: The gross domestic expenditure on research (GERD) has been stagnant at 0.7 per cent of the GDP for years. India has one of the lowest GERD/GDP ratios among the BRICS nations.

• Bureaucracy and Efficiency Concerns: 

  • India’s defence procurement process is notorious for its slow and bureaucratic nature. Delays in Defense projects impacting production timelines and budgets.
    • For Example: The Submarine Project P-75l has reached only the Request for Proposal stage in 2021 despite being in the pipeline for the greater part of the last two decades.

• Industrial Ecosystem Woes:

  • A strong domestic defence industry hinges on a well-developed ecosystem of suppliers, manufacturers, and skilled workers. Encouraging private sector participation, fostering innovation among startups (like IDEX), and building a skilled workforce are crucial steps.
    • According to the Ministry of Defence, 333 private companies have been issued a total of 539 industrial licenses. Of these, 110 companies have reported commencement of production only

• Geopolitical Considerations: 

  • Foreign suppliers may be hesitant to transfer sensitive technologies to Indian companies, hindering India’s ability to achieve complete self-reliance.
    • Foreign manufacturers are reluctant to act as India’s defence-procurement partner due to fear of losing control of their intellectual property
    • Despite India–UK collaboration regarding defence capabilities British companies continue to view India as a challenging market due to its protectionist defence-industrial policies.

• Discouraging Regulatory Regime: 

  • A domestic or foreign company wishing to do business in the Indian aerospace and defence industry must comply with often conflicting policies of Defence Procurement Procedure (including the Offset Policy), FDI, Industrial Licensing, Foreign Trade (Export/ Import) and Taxation.
    • For Example: India also has strict requirements regarding the level of indigenous content that must be present in defence manufacturing: in the ‘short term’, which is not defined, 50% or more of the parts and materials used in weapons or equipment must be domestically sourced. 

• Limited Fiscal Space: 

• • Developing indigenous defence equipment can be expensive, especially during the initial stages. India needs to find a balance between affordability and technological advancement. In some cases, importing certain equipment in the short term might be cheaper. 
    • For Example: With a defence budget of INR 5.94 trillion (USD73.8 billion) for 2023, the majority of this, or roughly 53%, is used for pensions and people, which reduces the amount available for modernising and purchasing defensive equipment.

• Lacking Convergence in Manufacturing and Need for Defence Forces: 

  • Manufacturers and defence forces are at odds.
    • Example: The Navy rejected the LCA Tejas as its present form does not meet the naval qualitative requirements (QRs) to be a carrier-based aircraft.

Way Forward: Towards Atmanirbharta in Defence Sector

• Focus on Research and Development:

  • Defense start-ups serve as a driver of innovation and have the potential to become a key part of India’s renewed push toward self-reliance in the defence sector. Start-ups can play an increasing role in equipping the armed forces with niche capabilities.

• Joint Ventures and Technology transfer:

  • Strategic partnerships with foreign companies can be beneficial.  Joint ventures can facilitate technology transfer and knowledge sharing, allowing India to build its own capabilities over time.

• Autonomy for Defence PSEs and  PSUs: 

  • Greater operational and financial autonomy can help state-owned enterprises increase profits, productivity and employment.

• Reform in Defence Procurement Policies: 

  • Streamlining procurement procedures, reducing bureaucracy, and ensuring faster decision-making will make domestic options more attractive and expedite acquisition processes.

• Emphasis on Defence Export:

  • A strong domestic defence industry can help India to become an export powerhouse. Developing a robust export strategy will generate revenue and encourage innovation to compete in the global market.  
  • For Example, India needs to establish a framework similar to the US’s Foreign Military Sales (FMS) program to facilitate a smoother international defence deal.

• Shekatkar Committee:  

  • This committee advocated increasing the retirement age for specific personnel. This could free up resources for the government to invest in other critical areas within the defence sector, like R&D and infrastructure development.

• Vijay Kelkar Committee:  

• • Their recommendation to involve India’s leading private companies in defence production is crucial.  Leveraging their expertise and manufacturing capabilities will be vital for Atmanirbharta in in defence sector.

Conclusion

The Defence Minister emphasised the need for atmanirbharta in defence for the country not an option but a necessity in the fast-changing global scenario.

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This Article is based on the news “Shri Narayan Rane says in last 10 years under  transformative leadership of the Prime Minister there has been an unprecedented increase in the number of women entrepreneurs in India” which was published in the Pib. Recently, the 9th Annual Shakti International Women Entrepreneurs Summit was held in New Delhi. 

Shakti International Women Entrepreneurs Summit 2024

• Organized by: It is an annual Conference on the occasion of International Women’s Day (March 8) being organised by India SME Forum with the support of the Ministry of Micro, Small and Medium Enterprises, Govt. of India, in association with Women Entrepreneurs Forum.
• Aim: To empower aspiring and established women entrepreneurs while also celebrating the achievements of emerging women entrepreneurs from varied industry sectors.

New Initiatives Launched During the International Women Entrepreneurs Summit

• Panjikaran Se Pragati: 

  • It is a joint integrated national campaign by the Ministry of  MSME and Women Entrepreneurship Platform (WEP). 
    • Target: This national campaign is a clarion call to women entrepreneurs nationwide to get Udyam registered and unlock a world of opportunities.

• WEP- Unnati-Udyamita se Pragati:

• • It is a joint program of the Ministry of MSME and the Women’s Entrepreneurship Platform (WEP).
    • Target: This MSME – WEP Award-to-Reward (ATR) programme is a groundbreaking initiative to take Women SMEs to the next level of growth by providing comprehensive capacity-building support through WEP.

• The Mentorship Platform is For Women Entrepreneurship Platform (WEP):

• • WEP: It is an initiative of NITI Aayog (launched at the 8th Global Entrepreneurship Summit in 2017). 
    • It is a first-of-its-kind, unified access portal that brings together women from different parts of India to realise their entrepreneurial aspirations. 

• Honour to Women: 

  • During the program, women entrepreneurs who were beneficiaries of the CGTMSE scheme and better-performing women entrepreneurs were honoured.

• An Unprecedented Increase: 

• • A significant increase in women entrepreneurs is also observed in the MSME sector. Women lead more than 1.40 crore MSMEs. 
    • Zed Certification of women-owned MSMEs is now completely free.
      • MSME Sustainable (ZED) Certification: It is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivise them for ZED Certification while encouraging them to become MSME Champions.

Status of Women Entrepreneurs in India

• Report by Bain & Company: Nearly 20% of enterprises in India are owned by women. 
• The Recent Women in India’s Startup Ecosystem Report or WISER: Women-led startups have risen to 18% in India since 2017.
• Mastercard Index of Women Entrepreneurs: India ranks 57th out of 65 on the Index, indicating a substantial journey ahead. Despite this, the financial commitment to women-led startups showed a commendable increase, with funding escalating to 18% of the overall in 2022.
  • Currently, the country has nearly 14% of women entrepreneurs, equating to 8.05 million, and over 20% of the MSME sector comprises women-led businesses.

Why Do We Need Women Entrepreneurs in India?

The promotion and encouragement of women entrepreneurs in India carry numerous benefits for both individuals and the overall economic and societal landscape. Here are many reasons why there is a need for more women entrepreneurs in India:

• A Basic Building Block: 

  • Women are the building blocks of a nation and essential for sustainable development that be a social, economic, or political sphere in the country.
    • Women’s financial independence leads to their partaking in decisions right from their personal lives to their homes and society. Therefore, women’s economic freedom is one of the basic building blocks of the aspirational society that we intend.

• To Bridge the Economic Gender Disparity: 

  • As per the World Economic Forum Report 2019, for every dollar a man gets paid, a woman on average is paid 54 cents. 
    • According to the World Bank’s Women, Business and the Law 2022 report, Women earn only two-thirds of men’s expected lifetime income; therefore, reducing the inequalities in economic opportunity that could close this gap may lead to enormous benefits for the world.

• To Break the Orthodox View: 

  • The old perceptions of family responsibility on women pose an overwhelming challenge, the patriarchal attitude restricts women’s duties to domestic and family work, thus preventing them from acting independently.
    • Women need to be financially strong to change the conventional thinking of segregating different sectors for women and men as well.

• To Achieve Economic Targets: 

  • As India progresses economically and targets a USD 5 trillion economy by 2024-25, there is a need to push Women Entrepreneurs and bridging the rural-urban divide.
    • Also, with the success of Self-help Groups (SHGs) programmes, it is predicted that Women-owned enterprises can generate over 50-60 million jobs by 2030. 
      • A report published by McKinsey Global institute states that USD 12 trillion could be added to global GDP by 2025 by advancing women’s equality.

• For Better Finance Management: 

  • It is a fact that women can easily utilize the funds whether it is raised for home expenses or the business expenditure.
    • Involvement of women especially in money matters can definitely be a game changer in the manner in which wealth is not only managed but also inherited.

• Influencer: 

  • When a man is educated, it’s just an individual is educated but when a woman is educated, it means, a generation is educated. 
    • Women do occupy a position of great influence in their families and if they actively participate alongside the menfolk in financial decisions, it would certainly have a positive impact on the next generation as well. 

• Empowerment & Overall Development: 

  • Economically sound women empower the female population and would lead to the sound development of family, the World.

Government’s Steps to Support Women Entrepreneurs in India

• Constitutional Value: 

  • In India, gender equality is enshrined in the Constitution (Articles 14 to 18) and grants equality and empowers the State to adopt measures in favour of women. 
    • Article 42 of the Constitution of India states that the State should make provisions for securing justice and humane conditions of work and for maternity relief.

• Laws & Regulations: 

• • The Government and its policies have had the empowerment of women at the core since its fifth five-year plan 1974-79, considering the role women entrepreneurs can play in the development of the economy of the country. 

• Ambit of Various Schemes For Women Entrepreneurs in India

• • The Indian Government has created an ambit of new schemes. Additionally, many state governments have rolled out their plans for them. 

• Significance of Government Schemes For Women Entrepreneurs in India: 

  • Over the past few years, the schemes are providing subsidized and accessible capital, connecting them with potential buyers, providing skill and market development assistance, capacity building, providing financial literacy, and access to easy micro-credit facilities to women entrepreneurs.

• Three-tier Boost: 

• • The Women Entrepreneurship in India is receiving a three tier boost, which can be mainly characterised as: 
    • Self Help Groups
    • Women-Led Enterprises
    • Women-Led Start-ups

About Women Entrepreneurship Platform (WEP) of NITI Aayog

• Founding Pillars: 

  • NITI Aayog’s Women Entrepreneurship Platform (WEP) is built on three pillars: 
    • Ichha Shakti: It represents motivating aspiring entrepreneurs to start their businesses.
    • Gyaan Shakti: It provides knowledge and ecosystem support to women entrepreneurs to foster entrepreneurship.
    • Karma Shakti: It means providing hands-on support to entrepreneurs in setting and scaling up businesses.

• Focus Areas: 

• • Through its partnerships, services are provided in 6 main focus areas- Community and Networking, Funding and Financial Assistance, Incubation and Acceleration, Compliance and Tax Assistance, Entrepreneur Skilling and Mentorship and Marketing Assistance.

Challenges Faced By women entrepreneurs in India?

Major problems of women entrepreneurs in India are as follows;

• Lack of Autonomy: 

  • Women receive lesser education, and fewer opportunities and face many hurdles in achieving social, political, and economic autonomy.
    • They face underrepresentation at the various levels of decision-making and unrecognition of their efforts and achievements.

• Societal Pressures: 

  • Entrepreneurship comes with its own set of challenges for both genders. However, the challenges for women are more significant. They are confronted with societal pressures in most regions in India and also globally.

• Limited Access to Finance & Opportunities: 

  • The lack of access to formal financing institutions, coupled with a lack of collateral for loans, often keeps women away from entrepreneurship opportunities.
    • As per World Bank’s Women, Business and the Law 2022 report, “nearly 2.4 billion women of working age worldwide still are not afforded equal economic opportunities. 

• Create Rural-urban Divide: 

  • Women Entrepreneurs in India are generally concentrated in the urban areas, which impacts the rural population where the patriarchal effects are more stark.

• Lack of Technological Exposure: 

  • It creates barriers to the success of women as entrepreneurs in rural areas specifically. 
    • A UNIDO-led study on barriers to women’s entrepreneurship found that women were influenced more by traditional and internal factors than by legal or regulatory obstacles when starting their businesses.

• Very little Contribution to the Science, Technology, Engineering, and Math (STEM) Sector:

• • Women make up only 28% of the STEM workforce and men vastly outnumber women majoring in most STEM fields in college. 
    • This also brings parity in sectors the women choose as entrepreneurs since these sectors will throw up more jobs than expected in the future.

Way Forward to strengthen Women Entrepreneurship in India

• Improve the Quantity and Quality of Start-ups and Enterprises established by Women: By increasing their access to capital and support in funding.
• Exclusive Support: The government should facilitate support during pregnancy and other benefits about childcare, which would help in creating a supportive work environment for them to choose entrepreneurship as a career choice.
• Gender-neutral Approach: Entrepreneurship is gender agnostic, and a fundamental approach for any government to push for the overall economic development of a country must be gender-neutral.
• Work on  the Report of McKinsey Global Institute: It identifies six types of intervention to bridge the gender gap- Financial incentives and support, Technology and infrastructure, Creating economic opportunity, Capability building, Advocacy and shaping attitudes and Laws, policies, and regulations.
• Counter the Prevailing Inequalities: Inequalities also exist in the funding spaces, while many types of research have shown that the success of women-led start-ups is much higher than that of men-led start-ups.
  • There is a need for emphasised and positive policies in favour of women for building strong economies of the country, through various initiatives and scaling up of the initiatives already existing in the country.
• Improvement in Raising Awareness: Awareness levels and acumen about finances will definitely improve, leading to gender parity too when it comes to financial decision-making.

Conclusion

Women entrepreneurship is an essential source not only for the economic growth of a country but can also act as a powerful tool to break off the shackles that existed owing to the extremely pervasive gender inequalities. Women’s entrepreneurship will shift the narrative from women’s development to women-led development. 

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