Context: 

The latest data from the Centre for Monitoring Indian Economy (CMIE) suggests that In just three years from January-April 2019 to 2023, India’s workforce experienced a significant expansion, the number of self-employed businesspersons witnessed an impressive increase during this period.

Trends In Employment In India:

• Total Employment: As of January-April 2023, there were 412.9 million employed individuals in India. 
  • This number had increased by 8.6 million compared to the pre-pandemic level in January-April 2019.

• Categories of Employment: 
  • Farmers: The largest employment category in India consists of farmers, who are involved in agricultural activities.
  • Wage Labourers and Small Traders: The second largest category includes wage laborers and small traders.
  • Salaried Class: The third biggest category is the salaried class, which includes individuals working in various organized sectors.
  • Business Class or Entrepreneurs: The fourth biggest category includes individuals engaged in business and entrepreneurship.
• Employment Trajectories: 
  • Business: The “business” category has fully recovered to the pre-pandemic level, with the number of people employed in this sector growing by 8.4 million in the last four years.
  • Salaried Class, Wage Labourers, and Small Traders: These three categories have not yet fully recovered to the pre-pandemic levels, as the number of people employed in these sectors is still below what it was during January-April 2019.

The “business” class in India can be compressed into three main sub-categories:

• Businessmen: Individuals running large businesses, managing fixed premises (offices, shops, factories) using capital and human resources.
• Qualified Self-employed Professionals: People who run their own professional enterprises based on their expertise (e.g., doctors, lawyers, consultants, chartered accountants).
• Self-employed: Entrepreneurs managing their own businesses with limited financial, human, or professional resources (e.g., taxi drivers, barbers, real estate agents, models, astrologers).

Rise of Self-Employment:

• Self-employed entrepreneurs accounted for the largest share, at around 70-80 per cent .
• According to CMIE, the share of businessmen fell substantially and was offset by an equal rise in the share of self-employed entrepreneurs.

Findings on data analysis:

• Decline in Traditional Business Class: The well-to-do entrepreneur class in India is experiencing a secular decline, both in absolute numbers and as a proportion of the population.
• Rise in Self-Employment: Self-employment is on the rise in India, with individuals starting businesses using limited resources and capital.
• Concerns about Real Entrepreneurship: The increase in self-employment raises concerns about genuine entrepreneurship, as it might be driven by limited employment opportunities rather than true entrepreneurial ventures.
• Economic Conditions: The growth in self-employment could indicate economic challenges and limited job opportunities in organized sectors, leading people to opt for self-employment as a means of livelihood.

What should India do?

• Shift from Agriculture: Utilize the existing labour force by shifting a major chunk (45.5%) engaged in agriculture with low productivity to other sectors.
• Labour-Intensive Manufacturing: Focus on labour-intensive sectors like textiles, toys, footwear, auto components, sports goods, and agricultural processing to provide employment opportunities.
• Potential Sectors: Explore sectors like restaurants, hotels, mining, construction, healthcare, and caregiving services for further job creation.
• Infrastructure Development: Accelerate infrastructure development to reduce trade costs, facilitate trade, and support the growth of the manufacturing sector.
• Skilling and Upskilling for Productivity:
  • Skill Development Programs: Utilize initiatives like Jan Shikshan Sansthan, Pradhan Mantri Kaushal Vikas Yojana, and National Apprenticeship Promotion Scheme for enhancing human resource skills.
  • Focus on Unorganized Sector: Address the underpaid employment in the unorganized sector (where 93% of employment lies) by upscaling skills and creating a high-skilled ecosystem.
  • Education and Health Facilities: Invest in quality education and healthcare to ensure a productive and healthy labour force.
• Healthcare Reforms:
  • Ayushman Bharat and Swachh Bharat Mission: Ensure health equity by implementing wide-ranging reforms in healthcare.
  • Accessibility and Affordability: Scale up access to quality healthcare services, make drug prices affordable, and implement the Pradhan Mantri Bhartiya Janaushadhi Pariyojana.
  • Universal Insurance: Work towards providing financial medical protection through universal insurance coverage.
• Quality Education:
  • National Education Policy 2020: Emphasize updating knowledge and creating productive employment opportunities.
  • Inclusive Education: Implement the Samagra Shiksha program for inclusive, equitable, and quality education at all levels.
  • Improve School Education: Focus on delivering quality education up to higher secondary level to build a skilled labor force.

Conclusion: 

India’s next 30 years belong to its potential if reforms are accelerated and flagship programs like Skill India, Make in India, and Start-up India yield desired outcomes. Focusing on labor-intensive manufacturing and human capital can make India a global labor force source.

News Source: The Indian Express

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Context:

• The Minister for Law and Justice recently informed the government that the simultaneous elections has the potential  to result in significant savings for the public exchequer and political parties, although there are several impediments in its implementation. 

What is a simultaneous election/One Nation One Election?

• One Nation One Election refers to conducting simultaneous elections for the Lok Sabha and state assemblies, thereby synchronizing the election cycle and reducing the frequency of elections. 
• This would involve holding elections in all states and the Lok Sabha in a gap of five years, allowing voters to cast their votes for both the LS and state assemblies on the same day, either simultaneously or in a phased manner. 
  • By doing so, it aims to address the current situation where elections take place throughout the year due to staggered terms and premature dissolutions.

Benefits of simultaneous elections:

• Reduced Expenditure: It will lead to avoidance of replication of effort on the part of administrative and law and order machinery in holding repeated elections and bring considerable savings to political parties and candidates in their election campaigns.
• Issue of model code of conduct:Simultaneous elections can mitigate the issue of the Model Code of Conduct which sometimes hinders the government from announcing projects or policy plans.
• Improved Governance: Simultaneous elections will allow elected governments and ruling parties to concentrate on governance rather than diverting their attention towards frequent election preparations in various regions.
• Disruption of public services: Deputing government employees frequently on election duty can hinder public services resulting in challenges for the smooth functioning of government operations and delivery of services to the public.
• Curbing black money: Frequent elections have been associated with the possibility of black money being turned into white money, leading to the emergence of a parallel economy. Holding one-time elections could help reduce such a possibility.
• Fostering unity: Simultaneous polls promote a national perspective over regional ones, which is important for cultivating unity within the country.
• Recommendations of Law Commission: As per the Commission, simultaneous elections can help prevent the nation from being in a constant election mode and also increase voter turnout.

Impediments raised by Ministry of Law and Justice in implementation of Simultaneous Elections:

• Alteration of Basic Structure: Implementing simultaneous elections would require bringing amendments in not less than five articles of Constitution to the Constitution. 
  • For example, Article 85 (Dissolution of the Lok Sabha), 356 (Failure of constitutional machinery), etc.
• EVM Expenses: Doubling expenses on electronic voting machines (EVMs) could offset the potential savings from simultaneous elections.
• Model Code of Conduct (MCC): It is argued that it only prevents ruling parties from using government machinery for electoral gains, rather than paralyzing policy-making as overstated by some opponents.
• Against federal structure: It has the tendency of moving the country towards a unitary state rather than a federal one that the Constitution envisages. 
• Fading of local issues: Mixing of national and regional issues will lead to fading of local issues, distorting priorities and giving an unfair advantage to national parties over regional ones.
• Logistic Challenges: Logistical challenges could arise in organizing simultaneous elections once in five years, especially with the deployment of security forces in large numbers for free and fair conduct.
• Scheduling Challenges: Scheduling time slots may be a challenge due to India’s geographical and administrative diversity, including weather, agricultural cycles, exam schedules, religious festivals, and public holidays.
• Controlling mid term dissolution: Ensuring adequate legal safeguards would be a challenge which is necessary to prevent mid-term dissolution of Houses and protecting the simultaneous elections cycle.
• Change in Voting behaviour: Evidence shows that voters often tend to vote for the same party for both State and Central governments when voters are required to cast their ballots for both the State and Central governments simultaneously, at the same polling booth, and on the same day.
• International examples not suitable for India: Comparing international examples (Sweden, Belgium, South Africa) to India may not be suitable due to the vast differences in population and area.
• Feasibility: Concerns arise over the feasibility of conducting elections across all state governments if a coalition central government collapses.
• Broad Consensus: The government will have to be obtained consensus of all political parties as well as all state governments.

Way Forward:

• Cycle of elections: Creating a cycle where legislative assemblies whose terms end within six months to one year before or after the Lok Sabha elections could be held along with elections of Lok Sabha. 
• Political parties under RTI: In order to ensure better transparency, accountability and democracy within political parties, bringing them under the framework of the Right to Information Act is recommended.
• Free and fair elections: Strengthening the Election Commission’s role as a regulator and enhancing its monitoring capabilities to oversee poll expenditure at all levels would contribute to conducting free and fair elections.
• Electronic voter ID cards: The use of IT-enabled tools like electronic voter ID cards can help eliminate bogus electors from electoral rolls, improving the accuracy and integrity of the voter registration process.
• State funding of elections: Exploring the idea of state funding for elections is proposed as a measure to reduce the influence of money power in politics and promote a level playing field for candidates.

News Source: Indian Express 

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Context:

The Centre’s Fiscal deficit increased to Rs 4.51 lakh crore in April-June from Rs 2.10 lakh crore in April-May, according to data released by the Controller General of Accounts.

About Fiscal Deficit:

• Fiscal deficit is the difference between the government’s total expenditure and its total revenue (excluding borrowings).
• In mathematical terms:
  • Fiscal Deficit = Total budget expenditure – Total budget receipts excluding borrowings
• It is an indicator of the extent to which the government must borrow in order to finance its operations and is expressed as a percentage of the country’s Gross Domestic Product (GDP).

Components of the Fiscal Deficit: 

• Income Component: The income component is made of two variables, revenue generated from taxes levied by the Centre and the income generated from non-tax variables. 
  • The taxable income consists of the amount generated from corporation tax, income tax, Customs duties, excise duties, GST, among others. 
  • The non-taxable income comes from external grants, interest receipts, dividends and profits, receipts from Union Territories, among others.
• Expenditure Component: The government in its Budget allocates funds for several works, including payments of salaries, pensions, emoluments, creation of assets, funds for infrastructure, development, health and numerous other sectors that form the expenditure component.
• A high Fiscal deficit at times emerges:
  • if the government is spending on developmental works like construction of highways, ports, roads, airports.
  • due to high consumption expenditure

Positive Aspects of Fiscal Deficit:

• Role of Fiscal Deficit in Stimulating Economic Growth: Fiscal deficit allows the government to boost expenditure on essential public services, infrastructure, and other critical sectors, which, in turn, can act as a catalyst for economic growth.
• Social Welfare Schemes: Governments can use fiscal deficits to finance social welfare programs, such as healthcare, education, and poverty alleviation initiatives. 

Negative Aspects of Fiscal Deficit:

• Loss of Investor Confidence: High fiscal deficit without corrective measures can erode investor confidence, leading to capital flight and reduced foreign investment.
• Crowding-out effect: When the government runs a fiscal deficit and borrows funds from the financial markets, which causes a crowding-out effect.
  • The crowding-out effect refers to a phenomenon where increased government spending or borrowing leads to reduced private sector investment.    
• Potential Downgrade in Credit Rating: Credit rating agencies might lower a country’s credit rating if its fiscal deficit is seen as unmanageable or unsustainable.

News Source:  The Hindu

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The Government of Odisha has notified three Biodiversity Heritage Sites(BHS) i.e. Mandasaru Hills, Mahendragiri Hills and Gandhamardan Hills.

About Biodiversity Heritage Sites: 

• The ‘Biodiversity Heritage Sites’ are unique ecosystems having rich biodiversity comprising of any one or more of the following components:
  • Richness of wild as well as domesticated species or intra-specific categories.
  • High endemism.
  • Presence of rare and threatened species, keystone species, species of evolutionary significance.
  • Wild ancestors of domestic/cultivated species or their varieties.
• Under Section-37 of the Biological Diversity Act, 2002, the State Government, in consultation with local bodies, may notify areas of biodiversity importance as BHS.

News Source: PIB

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The Constitution (Jammu and Kashmir) Scheduled Tribes Order (Amendment) Bill, 2023 seeks  to include “Gadda Brahmin”, “Koli”, “Paddari Tribe”, and “Pahari Ethnic Group” in the list of Scheduled Tribes (STs) in Jammu and Kashmir.

Process for Inclusion in the ST List:

• The State government makes a recommendation to the Tribal Affairs Ministry.
• The Tribal Affairs Ministry reviews the recommendation and sends it to the Registrar General of India for approval.
• The National Commission for Scheduled Tribes approves the recommendation.
• The Cabinet makes decision on the inclusion of the tribe in the ST list.
• The final decision rests with the President’s office issuing a notification specifying the changes under powers vested in it from Articles 342.

Criteria for Specification of Scheduled Tribes in India:

• Primitive traits
• Distinctive culture
• Geographical isolation
• Shyness of contact with the community at large
• Backwardness

Pahari Ethnic Group:

• The Paharis are Hindus, Muslims, and Sikhs, and include people of Kashmiri origin who settled in the districts of Rajouri and Poonch.
• There are upper caste Hindus among the Paharis; also people who were displaced from Pakistan Occupied Kashmir.

Paddari Tribe:

• They live in the remote Paddar area of the hilly Kishtwar district.
• The 2011 census recorded the Paddari population at 21,548, comprising 83.6% Hindus, 9.5% Buddhists, and 6.8% Muslims.

News Source: The Indian Express

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Context:

In June 2023, seven out of the eight core sectors, which make up the Index of Industrial Production, experienced an increase in their performance.

About Index of Industrial Production (IIP):

• IIP is an index which shows the growth rates in different industry groups of the economy in a stipulated period of time. 
• Publication: It is  published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
• Base Year: 2011-12
• It is a composite indicator that measures the growth rate of industry groups classified under:
  • Broad sectors, namely, Mining, Manufacturing and Electricity
  • Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods.

Eight Core Sectors:

• The eight core sector industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP) which includes (in decreasing order of weightage) : 
  • Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Significance of IIP:

• It is used by government agencies, the Reserve Bank of India, etc, for policy-making decisions.
• It helps in the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.

News Source : The Hindu

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FSSAI directed states and union territories to intensify surveillance of fresh produce due to mounting concerns over high concentrations of harmful pesticides and chemicals in vegetables and fruit sold in markets.         

About FSSAI:

• FSSAI has been established under Food Safety and Standards , 2006 which consolidates various acts & orders that have hitherto handled food related issues in various Ministries and Departments. 
• Nodal Ministry: Ministry of Health & Family Welfare
• Functions:
  • Framing of Regulations to lay down the Standards and guidelines in relation to articles of food and specifying appropriate systems of enforcing various standards thus notified.
  • Laying down mechanisms and guidelines for accreditation of certification bodies engaged in certification of food safety management systems for food businesses.
  • Laying down procedure and guidelines for accreditation of laboratories and notification of the accredited laboratories.

Governance of FSSAI:

• The FSSAI consists of a Chairperson and twenty-two members, with one-third of the members being women.
• The Chairperson of FSSAI is appointed by the Central Government.
• It is assisted by Scientific Committees and Panels in setting standards and the Central Advisory Committee in coordinating with enforcement agencies.

News Source:  Livemint

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