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India has recorded a decline in out-of-pocket expenditure (OOPE), according to National Health Accounts estimates released by the Ministry of Health and Family Welfare for 2021-22. 

Decline in Out-of-Pocket Expenditure (OOPE) on Health

• Key Findings:
  • OOPE Decline: OOPE reduced to 39.4% of total health expenditure (THE) in 2021-22 from 48.8% in 2017-18.
  • Government’s Share Increase: Government’s share in THE rose from 40.8% to 48%.
  • Goal: OOPE to be reduced to 35% of THE by 2025-26.

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Reasons for OOPE Decline

• Increased Public Financing: More government funding in healthcare as part of the National Health Policy, 2017 to move towards Universal Health Coverage (UHC).
• Government Schemes:
  • Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY) scheme: Boosted healthcare accessibility.
• Private Health Insurance:
  • Coverage rose from 5.8% (2017-18) to 7.4% (2021-22).

Government Health Expenditure

• Increase in GDP Share: Government health expenditure rose from 1.35% of GDP (2017-18) to 1.84% (2021-22).
  • Target: 2.5% of GDP by 2025.
• Per Capita Health Expenditure: Increased from ₹1,753 to ₹3,169 (2017-18 to 2021-22).

• Slight decrease in social security health expenditure: From 9% (2017-18) to 8.7% (2021-22).
  • Includes premiums for Ayushman Bharat and other state-specific health insurance schemes, reimbursements for government employees, etc.

National Health Accounts (NHA)

• The National Health Accounts (NHA) are annual estimates that provide a detailed description of the financial flows in India’s health system. 
• The Union Ministry of Health & Family Welfare releases the NHA estimates based on the globally accepted “A System of Health Accounts (SHA), 2011” framework. 
• The National Health Systems Resource Centre (NHSRC) publishes the NHA estimates and is designated as the National Health Accounts Technical Secretariat (NHATS). 
  • Established in 2007, the National Health Systems Resource Centre, a premier Think Tank for MoHFW.
  • It is mandated to assist in policy and strategy development in the provision and mobilisation of technical assistance to the states and in capacity building for the Ministry of Health.

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The Indian Cancer Genome Atlas (ICGA) has launched India’s first cancer data portal that collects various types of data to help cancer research.

Open Access to Indian Cancer Data: Advancing Tailored Research and Treatment

• Purpose:  To provide open access to clinically relevant data from Indian cancer patients, aimed at improving cancer research and treatment tailored to the Indian population.
• Significance: Traditional cancer treatments in India have relied on data from Western populations. However, cancer characteristics can vary significantly at the molecular level for Indian patients.

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Key Features of the Cancer Multi-Omics Data Portal

• First in India: This is India’s first Cancer Multi-Omics Data Portal which  provides detailed information about breast cancer patients, including genetic data.
• Built on cBioPortal: The portal uses the cBioPortal platform, which connects it with global cancer research efforts.

• Initial Data Set: The portal starts with data from 50 Indian patients, including DNA, RNA, and protein profiles, along with their treatment histories. 
  • The goal is to expand this to 500 patients within a year.
• Free to Access: The portal is open to all researchers for free, following responsible data-sharing guidelines.
• Personalised Treatments: This project aims to create tailored cancer treatments specifically for Indian patients.

About the Indian Cancer Genome Atlas (ICGA)

• ICGA focuses on mapping the genetic and protein information of cancers across India.
• It is a not-for-profit organisation supported by public, private, and philanthropic partnerships, with help from over 50 experts.
• Mission: The aim is to improve how cancer is diagnosed and treated in India and to contribute to the global understanding of cancer.

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Recently, the Cabinet approved continuation of the Centrally Sponsored Scheme of Integrated Development of Wildlife Habitats for the 15th Finance Commission cycle for an overall outlay of Rs. 2602.98 crores.

Integrated Development of Wildlife Habitats (IDWH)

• About IDWH: It is an ongoing Centrally Sponsored Scheme (funded partially by both the Central and State Governments)  aimed at enhancing wildlife protection and habitat conservation.
• Objectives: The scheme provides financial assistance to State and Union Territory (UT) governments for the conservation of wildlife and its habitats both within and outside Protected Areas (PAs).
• Components of the scheme
  • Support to Protected Areas (National Parks, Wildlife Sanctuaries, Conservation Reserves and Community Reserves)
  • Protection of Wildlife Outside Protected Areas
  • Recovery programmes for saving critically endangered species and habitats.

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• Subcomponents of Integrated Development of Wildlife Habitats (IDWH)
  • Project Tiger: Launched in 1973 to protect and conserve tiger populations in their natural habitats and prevent extinction.
    • A total of 18 tiger range States, distributed in five landscapes of the country is covered under the Project Tiger scheme.
    • The Project Tiger component also supports the ambitious Project Cheetah in the country
  • Project Elephant: Launched in 1992 to address the decline in elephant populations due to habitat loss and poaching.
  • Development of Wildlife Habitat: Creating and enhancing habitats to support wildlife conservation and biodiversity.
  • Project Dolphin: Aimed at the conservation of dolphin populations.
  • Project Lion: Focused on the protection and conservation of lion populations.

Significance of the Integrated Development of Wildlife Habitats (IDWH) Scheme

• Technological Integration in Conservation
  • Utilises M-STrIPES (Monitoring System For Tigers-Intensive Protection and Ecological Status) mobile application for real-time data collection and management.
  • Incorporates advanced technologies like camera traps and Artificial Intelligence (AI) for species identification and monitoring.
  • Conservation genetics has been used in the field of tiger conservation wherein a SOP for translocating tigers based on their genetic composition has been issued. 
    • Further, genetics has also been used to determine tiger numbers in low density landscapes as well as for determining the food ecology of the species.
• Support for Multiple Projects
  • Enhances Project Cheetah, facilitating its expansion and strengthening monitoring protocols with radio telemetry.
  • Supports Project Dolphin with equipment like Remotely Operated Vehicles (ROVs) for habitat monitoring.
  • Strengthens Project Lion in alignment with the “Lion @ 2047” vision document.
• Biodiversity Conservation
  • Protects 55 tiger reserves, 33 elephant reserves, and 718 protected areas, crucial for climate resilience and water security.
  • Focuses on keystone species (tigers, elephants, cheetahs, snow leopards, lions) that indicate ecosystem health.
  • Aids lesser-known species identified in the Species Recovery Programme.
• Economic and Ecological Balance
  • Generates over 50 lakh man-days of direct livelihood opportunities, alongside indirect employment through eco-tourism.
• Community Engagement
  • Encourages local community participation in conservation efforts, fostering a sense of ownership and responsibility towards wildlife protection.

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Astronomers at the Kodaikanal Solar Observatory have mapped variation in the rotation speed of the Sun’s chromosphere, from the equator right up to its polar regions for the first time using 100 years of daily records of the Sun.

Key Findings from the Mapping of Sun’s Chromosphere

• Differential Rotation Rates: The Sun rotates faster at the equator (13.98 degrees per day) and slower towards the poles (10.5 degrees per day at 80 degrees latitude).
• Similar Rotation of Features: Plages and network features exhibit similar rotation rates, suggesting a shared origin deep within the Sun.
• First Mapping Achievement: This study is the first to successfully use chromospheric network cells to map the Sun’s rotation from the equator to the poles.

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About Differential Rotation

• Definition: The difference in rotation speed between the Sun’s equator and poles is known as differential rotation.
• Earth vs. Sun’s Rotation
  • Earth’s Uniform Rotation: Earth rotates as a rigid body, completing a full rotation every 24 hours, with uniform rotation speed from equator to poles.
  • Sun’s Differential Rotation: The Sun, made of plasma, rotates at different speeds based on latitude.
    • The Sun’s equator spins much faster than its poles.
    • It takes the equatorial region only about 25 days to complete one rotation, while the poles take a leisurely 35 days. (Diagram represents the Sun’s differential rotation, where surface regions at various latitudes rotate at different speeds.)
• Significance of Differential Rotation
  • Understanding the intricacies of the variation in rotation speed, as a function of latitude as well as time, is crucial to understand the Sun itself.
  • It drives the solar dynamo, the 11-year solar cycle, and periods of intense solar activity that can trigger magnetic storms on Earth.

• • • Discovery of Differential Rotation: The discovery of differential rotation dates back to Carrington in the 19th century, who observed that sunspots on the visible surface of the Sun rotate at different speeds depending on their latitude.
    • Challenges of Relying on Sunspot Observations for Differential Rotation:
    • Limited Latitude Coverage: Sunspots do not appear above 35 degrees latitude, restricting their use in measuring the Sun’s rotation closer to the poles.
    • Infrequency at High Latitudes: Sunspots occur rarely at higher latitudes, making data collection sparse and unreliable for studying the Sun’s full rotational dynamics. This necessitated alternative methods
    • Inadequate for Time-Dependent Studies: Sunspot-based methods are insufficient for tracking how differential rotation varies over time, such as across the solar cycle, due to limited and sporadic data.

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Innovative Approach by Indian Institute of Astrophysics (IIA)

• Use of Solar Plages and Networks: Astronomers from the Indian Institute of Astrophysics (IIA) utilised solar plages and networks from 100 years of daily Sun records maintained by the Kodaikanal Solar Observatory, to study its rotation.
  • About Solar Plages: Brighter regions in the chromosphere with weaker magnetic fields than sunspots.
    • Significantly larger than sunspots, ranging from 3 to 10 times their size.
  • About Networks: Embedded in weak magnetic fields and are about 30,000 km across.
    • Slightly larger than individual sunspots, but smaller than sunspot groups.
  • Significance of using Plages and Networks:
    • Unlike sunspots, plages and network features are present across the Sun’s surface throughout the solar cycle.
    • This consistent presence enables astronomers to study the Sun’s rotation, even in polar regions, where sunspots are scarce.

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India’s plans to enter the manufacturing value chain of Small Modular Reactors (SMRs) are gaining momentum.

What are Small Modular Reactors?

Small Modular Reactors are small nuclear reactors that offer a power output of 30-300 MWe per unit.

• They harness nuclear fission to generate heat to produce energy.
• SMRs have the potential to provide a reliable and low-carbon source of electricity, complementing renewable energy sources.

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Status of Small Modular Reactors

• Both public and private institutions are actively participating in efforts to bring Small Modular Reactors technology to fruition within this decade. 
• Russia’s Akademik Lomonosov, the world’s first floating nuclear power plant that began commercial operation in May 2020, is producing energy from two 35 MW(e) SMRs. 
• Other Small Modular Reactorsare under construction or in the licensing stage in Argentina, Canada, China, Russia, South Korea and the United States of America.

Key Features of Small Modular Reactors

• Small size: Small Modular Reactors are significantly smaller than conventional reactors, reducing construction and operational costs.
• Modular design: SMRs can be factory-assembled and transported to the site, streamlining installation and reducing construction time.
• Reduced land requirements: SMRs generate less nuclear waste and can be safely operated in existing industrial sites, minimising land acquisition challenges.
• Reduced reliance on critical minerals: SMRs require low-enriched uranium, which is more widely available than critical minerals used in other energy technologies.

Benefits of SMRs

• Reduced construction time and cost: SMRs can be factory-assembled and transported to the site, streamlining the construction process.
• Enhanced safety: SMRs incorporate advanced safety features, reducing the risk of accidents.
• Increased flexibility: SMRs can be deployed in various locations, including remote areas and industrial sites.
• Reduced environmental impact: SMRs generate less nuclear waste and have a lower carbon footprint compared to traditional reactors.

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Integration with India’s energy strategy

• Net-zero emissions: Small Modular Reactors can contribute to India’s goal of achieving net-zero emissions by 2070.
• Enhanced energy security: SMRs can diversify India’s energy mix and reduce dependence on fossil fuels.
• Grid stability: SMRs can provide a reliable and dispatchable source of electricity, improving grid stability.

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The Ministry of Social Justice and Empowerment (MoSJE), under its new NAMASTE programme, has launched the first attempt to profile and address the risks faced by sewer and septic tank workers (SSWs) across India.

Key Findings of the Profiling

• 38,000 workers have been profiled from over 3,000 urban local bodies (ULBs) across 29 States and Union Territories.
• Between 2019 and 2023, 377 people lost their lives while engaged in hazardous cleaning of sewers and septic tanks.
• Social Composition:92% of workers cleaning urban sewers, septic tanks from SC, ST, OBC groups.
  • 68.9% of workers are from Scheduled Caste (SC) communities.
  • 14.7% belong to Other Backward Classes (OBC).
  • 8.3% are from Scheduled Tribes (ST).
  • 8% are from the general category.
• Hazardous Cleaning: The manual handling of human waste and cleaning of sewers and septic tanks continues to claim lives due to unsafe working conditions.
• Manual Scavenging: The practice of manually cleaning human waste is outlawed but persists in hazardous forms.
• Data Gaps: While over 58,000 manual scavengers were identified until 2018 under previous schemes.
  • The government claims no new manual scavengers have been identified since.
  • Claiming that none of the 6,500-plus complaints reporting manual scavenging could be verified. 

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About NAMASTE Programme (National Action for Mechanised Sanitation Ecosystem)

• Objective: To stop deaths of Sewers and Septic Tank Workers (SSWs) and to promote mechanization of cleaning operations with a vision to reduce hazardous cleaning and ensure the safety of sanitation workers.
• Launched: NAMASTE Scheme was launched in 2022 as a Central Sector Scheme.
• Replaced by: The scheme has replaced the Self-Employment Scheme for the Rehabilitation of Manual Scavengers (SRMS), which was started in 2007.
• Coverage: The scheme is to be implemented in all 4800+ Urban Local Bodies (ULBs) of the country, during the three years up to 2025-26.

Features of NAMASTE Programme

• Profiling of Sewer/Septic Tank Workers (SSWs): NAMASTE scheme envisages profiling of the Sewer/Septic Tank Workers (SSWs). List of SSWs would be obtained from the concerned ULBs and thereafter detailed profiling of the SSWs would be undertaken through profiling camps.
• Distribution of Safety Kits: Occupational Safety Training and distribution of Personal Protective Equipment (PPE) Kits to SSWs
• Assistance to Manual Scavengers: Assistance for Safety Devices to Sanitation Response Units (SRUs) for hazardous cleaning operations.
• Extending Health Insurance Scheme Benefits: For providing a safety net to identified SSWs and their families, they will be covered under the Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
  • The premium for AB-PMJAY for those identified Manual scavengers and SSWs families who are not covered earlier shall be borne under NAMASTE.
• Livelihood Assistance: The Action Plan will promote mechanization and enterprise development. 
• Providing Capital Subsidy: National Safai Karamcharis Finance & Development Corporation (NSKFDC) will provide funding support and capital subsidy to the Manual Scavengers to procure sanitation related equipment and vehicles under Swachhata Udyami Yojana (SUY) 
• Convergence of Programmes of MoSJE & MoHUA: The safety of SSWs is a joint responsibility of MoSJE and MoHUA. 
  • The Action Plan leverages the available financial allocations of existing SRMS, Swachh Bharat Missions (SBM), Deendayal Antyodaya Yojana-National Urban.

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Despite extensive efforts, experiments like LZ, XENON-nT, and PandaX-4T have consistently failed to detect dark matter.

Key issues in detection

• Decades of experiments have yielded no definitive results, leading to a sense of resignation among the physics community.

About Dark Matter

• It is made up of particles that do not have a charge , which means they do not interact through electromagnetic interactions. 
• Characteristics: 
  • These are particles that are “dark”, namely because they do not emit light, which is an electromagnetic phenomenon and 
  • “matter” because they possess mass like normal matter and hence interact through gravity.

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Dark Energy Vs Dark Matter

• Over 95% of the universe comprises dark matter and dark energy, with visible matter making up less than 5%.

Hunt for Dark Matter

Early Discoveries

• 1930s: Fritz Zwicky observed galaxies moving too fast in the Coma Cluster, hinting at invisible mass (dark matter).
• 1970s: Vera Rubin confirmed dark matter’s presence through galaxy rotation studies.

Direct Detection Experiments

LUX-ZEPLIN (LZ) experiment: Achieved the most stringent limits on dark matter particle identity (August 2023).

• Goal: Detect dark matter particles weakly interacting with atomic nuclei deep underground.
• Challenges:
  • Neutrino Fog: It refers to the abundance of neutrinos that create background noise in dark matter detectors, masking potential dark matter signals.
    • Neutrinos, abundant ghostly particles, create background noise in detectors, making it difficult to distinguish dark matter signals.
  • Sensitivity Limits: Future detectors may struggle to differentiate dark matter from even fainter neutrino interactions.

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XENON-nT: It  is a dark matter experiment located in the Gran Sasso National Laboratory in Italy,using a large tank of liquid xenon.

• Objective: To directly detect dark matter particles by measuring their interactions with xenon atoms.
• Detection: So far, XENON-nT has not detected any definitive dark matter signals, but it has set stringent limits on the properties of certain dark matter candidates.

PandaX-4T :It is a dark matter experiment located in China. It uses a large tank of liquid xenon as its target material.

• Objective: To directly detect dark matter particles through their interactions with xenon atoms.
• Detection: Like XENON-nT, PandaX-4T has not yet detected any definitive dark matter signals. However, it has set important constraints on the properties of potential dark matter candidates.

Ways to fulfil Dark Matter Quest

• Use of Specialised Material: Detecting lighter dark matter particles with specialised materials.
• Indirect detection: Observing phenomena like gamma rays potentially produced by dark matter interactions.
• Collaborations:  It requires the collaboration of physicists, engineers, and experts across various scientific disciplines.

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Glaciologist S.N. Remya is involved in research of permafrost layers to assess potential climate change catastrophes in the future  at the Himadri research station in Norway.

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Predicting Himalayan Permafrost Collapse and Early Warnings

• Presence of Permafrost: Permafrost exists in high-altitude regions like the Himalayas.
• Lack of Data: Limited information on Himalayan permafrost hinders accurate impact predictions.
• Research Efforts: Researchers like Remya are studying permafrost conditions in the Himalayas.
  • Focus on rock glaciers and the effects of thawing permafrost
• Focus Area: To identify the probability of disasters due to permafrost collapse and help provide early warnings to local communities

What is Permafrost?

• Permafrost refers to soil or rock that remains frozen for at least two consecutive years.
• It is primarily found in polar regions and high mountain areas where the ground stays below 0°C, trapping ice within the soil. 
• While permafrost itself doesn’t have to contain ice, it often does, and this ice plays a critical role in maintaining the ground’s stability.
• Global Distribution: Although permafrost is typically associated with the Arctic, it is also present in high-altitude regions like the Himalayas. 

Impacts of Thawing Permafrost

• Ground Instability and Infrastructure Damage: As permafrost thaws, soil loses its integrity, leading to ground instability, landslides, and infrastructure failure.
  • Regions like Canada and Alaska have already experienced damage to roads, buildings, and pipelines.
  • Communities in these areas are witnessing increased subsidence (ground sinking due to melting ice).
• Risk to Mountainous Regions:In mountain areas, melting permafrost can trigger landslides or glacial lake outbursts, posing serious risks to local populations.
  • One such example is the recent South Lhonak glacial lake flood in Sikkim, which could be linked to permafrost thaw. 
• Release of Greenhouse Gases: Arctic permafrost contains an estimated 1,700 billion metric tons of carbon (methane and CO₂).
  • This is 51 times the amount of carbon released globally from fossil fuel emissions in 2019.
• Health Risks from Dormant Viruses: Thawing permafrost could unleash thousands of dormant viruses and bacteria.
  • Some may be ancient or previously eradicated diseases like smallpox or Bubonic plague, to which humans may lack immunity or cures.

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Significance of studying Permafrost

• Identify at-risk areas: Pinpoint regions susceptible to permafrost collapse.
• Develop early warning systems: Implement systems to alert communities of potential hazards.
• Improve disaster preparedness: Enhance local communities’ ability to respond to permafrost-related disasters.
• Inform infrastructure planning: Guide long-term development decisions in the region.

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The ‘Make in India’ initiative  celebrated its 10th anniversary on 25th of September 2024 marking a decade of transformational growth for the Indian design and manufacturing ecosystem.

About The Make In India Initiative

• Launched: The Initiative was launched by Prime Minister Narendra Modi on September 25, 2014.
• Aim: To boost domestic manufacturing, foster innovation, enhance skill development, and facilitate foreign investment.
• Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
• Targets: 
  • To achieve a manufacturing sector growth rate to 12-14% annually.
  • To create an additional 100 million manufacturing jobs in the economy by 2022.To Increase the manufacturing sector’s contribution to GDP to 25% by 2022 (later revised to 2025).

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• Make In India 2.0: It focuses on furthering sustainability, innovation, and self-reliance with strategic interventions in renewable energy, green technologies, and advanced manufacturing.
  • Make In India 2.0 focuses on additional 27 sectors, which include 15 manufacturing sectors and 12 service sectors.
• Pillars of Make In India:
  • New Processes: It adopted new measure for entrepreneurship development like the ‘ease of doing business criteria to make it more conducive for startups and established enterprises alike
  • New Infrastructure: Focused development of industrial corridors and smart cities with state-of-the-art technology and high-speed communication and improved intellectual property rights (IPR) infrastructure to create world-class infrastructure.
  • New Sectors: Opening up of Foreign Direct Investment (FDI) in significant sectors like Defence Production and Railway infrastructure. Also easing FDI regulations in Insurance and Medical Devices, encouraging international investment and growth.
  • New Mindset: The government embraced the role of a facilitator rather than a regulator to foster a collaborative environment supporting industrial growth and innovation.

10 years of Make In India: Achievements

• Foreign Direct Investment (FDI): India has registered an increase of 119% in FDI inflows in the  (2014-24) period spanning  31 States and 57 sectors. The manufacturing sector saw an FDI inflow increase of 69% in the same period. 
  • India attracted $667.41 billion in FDI, representing nearly 67% of the total FDI received over the last 24 years between  April 2014 and March 2024
• Production Linked Incentive (PLI) Scheme: The PLI Schemes have resulted in ₹1.32 lakh crore (USD 16 billion) in investments and a significant boost in manufacturing output of ₹10.90 lakh crore (USD 130 billion) as of June 2024. Over 8.5 lakh jobs have been created directly and indirectly due to the initiative.
• Exports & Employment: India’s merchandise exports surpassed USD 437 billion in FY 2023-24, while total employment in the manufacturing sector increased from 57 million in 2017-18 to 64.4 million in 2022-23.
• Digital Transactions: Unified Payment Interface surpass the world’s leading digital payments platforms scoring an impressive 46% of the global real-time payment transactions.  UPI processed nearly ₹81 lakh crore in transactions between April and July 2024 alone.

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• Semiconductor Ecosystem:  Currently five proposals are in pipeline  with a total combined investment nearing Rs 1.52 lakh crores. Examples: A major project with Micron was sanctioned for nearly Rs 22,000 crores and Tata’s joint venture with Taiwan’s Powerchip in Dholera.
• Startups:  The recognised startups have increased to 1,40,803 as on 30th June 2024, which have created over 15.5 lakh direct jobs.
• Ease of Doing Business: India’s rank has improved from 142nd rank in 2014 to 63rd rank in 2019 in the World Bank’s Doing Business Report.
• Procedural Simplification: The Jan Vishwas (Amendment of Provisions) Act, 2023 has  decriminalised 183 provisions across 42 Central Acts. Also overall, 42,000 compliances have been reduced, and 3,700 provisions has been decriminalised 
• Medical Growth:  India supplies nearly 60% of the world’s vaccines and other life saving drugs, rightly named as the Pharma  of the world.
• Atmanirbhar in Defence: In 2023-24, defence production soared to ₹1.27 lakh crore, with exports reaching over 90 countries. Defence exports soared from Rs 1,000 crore to Rs 21,000 crore. Also India launched INS Vikrant, the country’s first domestically made aircraft carrier. 
• Mobile Manufacturing: Mobile phones constitute 43% of total electronics production in India, making it the second-largest mobile manufacturer in the world. 
  • The electronics sector overall  grew to USD 155 billion in FY23 with production nearly doubling  from USD 48 billion in FY17 to USD 101 billion in FY23.
• The Textile Industry: It  has created a staggering 14.5 crore jobs across the country, significantly contributing to India’s employment landscape
• Toys: Exports of toys have zoomed 239% over the past 10 years and produces an impressive 400 million toys annually, with 10 new toys being created every second.
• State level initiatives: Several Indian states have also launched their localised initiatives like Tamil Nadu Global Investors Meet, Make in Odisha, Vibrant Gujarat, Happening Haryana, and Magnetic Maharashtra.

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Challenges Ahead

• Stagnant Manufacturing Sector: The share of value addition by manufacturing sector is 15.9 percent in 2023-24 compared to 16.7 percent of GDP (in constant price) in 2013-14. Also the target to increase manufacturing share of GDP to 25% seems a distant dream which is still at 15%.
• Increasing Unemployment: The target of adding 100 million manufacturing jobs is unmet, rather India reported a loss of 24 million jobs between 2016-17 and 2020-21, as per Ashoka University’s Centre for Economic Data and Analysis. 
  • Also India is experiencing one of its highest unemployment rates in decades.
• High Taxation: High incidence of taxation and high handedness in dealing with tax litigation cases is another headache.
• FDI as percentage of GDP: Even in terms of FDI, net FDI inflows have come down from 1.5 percent of GDP in 2013-14 to 0.8 percent in 2023-24.
• Tapping Global Opportunity: India has been unable to attract the global shift of labour intensive manufacturing units out of China in sectors like textiles, leather, electronics which has shifted to economies like Vietnam and Bangladesh.
• Focus on Capital Intensive Industries: The present industrial policy disproportionately focuses on the development of capital-intensive industries providing subsidies to selected large and medium-scale industries. 
  • Example: automobiles, pharma, advanced battery cells, telecom equipment, etc. despite having comparative advantages in labour-intensive manufacturing activities.
• Skilled Workforce Shortage: India is short of semi and High skilled workforce, although skill development programs are a part of the Make in India initiative with relative success of the vocational training and education programs
• Unsupporting Infrastructure: The lack of adequate infrastructure like transportation networks, power supply, and logistics is a significant growth inhibitor for the development of the overall economy.
• Quality and Standards: Indian food products are facing allegations of being of sub standard quality globally  hampering their exports and India’s image.
  • Example: Spice brands of Everest and MDH tested for harmful pesticide residue in singapore and european countries. 
• Technological Backwardness: India has faced challenges in adopting and implementing advanced technologies in its manufacturing processes with a  lack of access to cutting-edge technologies, limited research and development capabilities, and low technology penetration hindering its competitiveness .
• Focus on assembling rather than Manufacturing: Major focus industries under the Make in India scheme are restricted to the assembling of knocked-down kits despite many global companies having set up units in the country.
  • Example: Mobile, telecommunication and electronics equipment manufacturing, etc.

Global Collaboration towards Make in India

• India-Japan: A $12 Bn ‘Japan-India Make-in-India Special Finance Facility’ fund was announced in 2015, to be managed by the Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC). 
  • Japan invested about $39.94 Bn in India in the (2000-2023) period, ranking fifth in FDI sources in sectors like automobiles, electrical equipment, telecommunications, chemicals, finance (insurance), and pharmaceuticals.
• India -Germany: ‘Make in India Mittelstand (MIIM), focusing on enhancing economic cooperation by encouraging small and medium-sized German companies to invest and manufacture in India was announced in 2015. 
  • The MIIM program, as of 2021 has supported more than 151 German Mittelstand companies, resulting in a total declared investment exceeding €1.4 Bn. 
• India- Korea: Major Korean companies like Samsung, LG and Hyundai Motors have collectively invested over $4.4 Bn in India. Also there are over 600 large and small Korean firms operating in India such as POSCO (Steel Making), Lotte (Food Processing), and SsangYong Motors (Automotive) with a plan to enter or expand their presence in India.

Way Forward

• Policy Reforms and Regulatory Simplifications: India needs to overcome the regulatory and policy barriers by initiating policy reforms like the direct tax reform and further rationalising the GST regime and labour laws.
• Skills Training Programs: Unskilled and unemployable workforce is a persistent headache for India stalling its growth. 
  • The National Education Policy with its focus on vocational training initiatives, and industry-academia collaborations can bridge the skills gap and ensure a competent workforce. 
• Raising Competitiveness: Indian manufacturers in order to compete on a global scale need to enhance their competitiveness via adoption of  advanced technologies, improving product quality, and optimising manufacturing processes to meet international standards.
• Integration: ‘Make in India’ needs to be integrated with ‘assemble for the world’ following the Chinese example, where it integrated its domestic manufacturing industries with assembling units for global ‘network product’ companies. 
  • As per the economic Survey, this may create about 4 crore well-paid jobs by 2025 and about 8 crore by 2030. 
• PLI for Labour Intersive Sectors: The PLI scheme needs to be expanded to include labour intensive sectors such as leather, garment, light engineering goods, toys, and footwear having  maximum local value addition as the traditional manufacturing sector remains the most viable choice to create jobs for the masses.

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