Context:

Recently, Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM) organized a National Conclave on Enabling 2 Crore ‘LAKHPATIDIDIs’- SHG Didis.

About Lakhpati Didis: 

• The Lakhpati Didi initiative, part of the DAY-NRLM, aims to provide skill training to two crore women. 
• This training enables them to engage in micro-enterprises and earn an annual income of at least Rs 1 lakh through various livelihood activities and value chain interventions.

DAY-NRLM:

• DAY-NRLM is a flagship poverty alleviation program implemented by the Ministry of Rural Development, Government of India. 
• Aim: To reduce poverty by enabling the poor household to access gainful self-employment and skilled wage employment opportunities resulting in sustainable and diversified livelihood options for the poor. 
• Core components of Mission: 
  • social mobilization and promotion and strengthening of self-managed and financially sustainable community institutions of the rural poor women;
  • financial inclusion; 
  • sustainable livelihoods; 
  • social inclusion, social development and access to entitlements through convergence.

News Source: PIB

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Context:

The Union Cabinet, chaired by the Prime Minister approved the Scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS).

Key Features of Scheme for Viability Gap Funding (VGF):

• Budgetary Outlay: An initial outlay of ₹9,400 crore, including a budgetary support of ₹3,760 crore. 
• Aim:To reduce the levelized cost of storage (LCoS) to ₹5.50-6.60 per kilowatt-hour (kWh), making storage a viable option to manage peak power demand. 
  • To spur investments in Battery Energy Storage Systems (BESS) via viability gap funding.
• Funding: The VGF will be released in five tranches till 2030-31 and help in creation of 4,000 MWh storage across the country.
  • The funding, which aims to reduce cost of energy storage for companies and consumers, is conditional to the fact that 85% of the BESS capacity will be made available to distribution companies (discoms).
• Selection of BESS developers: The selection of BESS developers for VGF grants will be carried out through a transparent competitive bidding process, promoting a level-playing field for both public and private sector entities.
• To ensure that the benefits of the scheme reach the consumers, a minimum of 85% of the BESS project capacity will be made available to power distribution companies (discoms).

Significance of Scheme:

• The scheme is in sync with India’s ambition to meet its 50% of energy requirements through renewable energy and non-fossil energy sources by 2030 and also help reduce carbon emission. 
• It is expected to bring down the cost of battery storage systems increasing their viability.
• It will not only enhance the integration of renewable energy into the electricity grid but also minimize wastage while optimizing the utilization of transmission networks.

News Source: The Hindu

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Context:

Recently, the Prime Minister attended the ASEAN-India Summit in Jakarta, Indonesia.

Highlights of 20th ASEAN-India summit:

• Theme: ‘ASEAN Matters: Epicentrum of Growth’
• KeyPoints of PM’s address:
  • ASEAN is the central pillar of India’s Act East Policy.
  • India supports ASEAN’s outlook on ASEAN-India centrality and Indo-Pacific.
  • The progress of a free and open Indo-Pacific and elevating the voice of the Global South is in the common interest of all.

Association of Southeast Asian Nations(ASEAN):

• ASEAN was established in 1967 with the signing of the Bangkok Declaration.
• Founding Members: Indonesia, Malaysia, Philippines, Singapore and Thailand.
  • Other Members: Brunei, Cambodia, Laos, Myanmar and Vietnam.
• Motto of ASEAN: “One Vision, One Identity, One Community”.
• Organizational Structure: The annual summit is ASEAN’s highest body (ASEAN Summit). 
  • The chairmanship of the ASEAN Summit and Ministerial Conferences has rotated annually in alphabetical order between member states.
• ASEAN Secretariat:  Indonesia, Jakarta.
• Objective: To accelerate economic growth, social progress and cultural development in the region.

Working of ASEAN:

• ASEAN is led by a chair, who is elected by member states every year and is supported by a secretariat situated in Jakarta, Indonesia. 
• Important decisions are normally made through conversation and consensus, governed by the ideals of non-interference in internal affairs and conflict resolution through peaceful means.

News Source: Business Standard

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Context:

According to a report, ‘Competing in the New Zero-Carbon Industrial Era’ India is among five major global economies in the race to reach net zero.

More on News:

• There was a clear technology competition between China, the EU and the US, but this year’s G7 host Japan and G20 host India provided more geographic balance with their ambitions in the global technology race to the top.
• The report shows that the net-zero transition policies have significantly strengthened competitiveness, energy security and future economic prosperity. 
• It also points out a few positive development points that show that India is on the right track in the race to zero-carbon technologies. 
• According to the report, India is among few countries which are on track to meet its Nationally Determined Contributions targets.

• India has strong ambitions to become an integral part of the global net-zero supply chain, the foundations are there for it to benefit from the transition in the near future, if additional investments can be secured.

About Net Zero:

• Net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.
• Importance of Net Zero:
  • To avert the worst impacts of climate change and preserve a liveable planet.
  • Global temperature increase needs to be limited to 1.5°C above pre-industrial levels, as called for in the Paris Agreement.
  • To keep global warming to no more than 1.5°C, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

Major Challenges Faced by India:

• Poor Targeting: According to Climate Action Tracker, India’s net zero target performs poorly in terms of its scope, target architecture and transparency.
  • Ex: India should clarify the emissions scope of the target and better quantify its mitigation measures and pathways.
• Oil Consumption: Oil is the main source of energy for the transportation sector, the majority of which is imported.
  • According to the International Energy Agency, India is the world’s third-largest consumer of energy and it is growing at the fastest rate in the world. 
• Renewable Energy Components Import:  International Energy Agency (IEA) projects a slowdown in India’s renewable sector in 2023–24 mainly due to higher prices, lower auction volumes and trade policies.
  • In 2021–22, India imported nearly US $76.62 billion worth of solar cells and modules from China.
• Agriculture Emissions: Agriculture is a significant source of emissions in India, particularly due to methane emissions from rice paddies and livestock. 
• Financial Constraints: Transition to a low-carbon economy requires investments in renewable energy, energy-efficient technologies, and sustainable infrastructure.
• Over-Dependence on Coal: As per the Ministry of Power, of the total installed power generation capacity, 57% is from fossil fuels, mostly thermal coal.

Steps taken by India Towards Net Zero:

• Decrease Reliance on Fossil Fuel: National Electricity Plan (2023) projects that non-fossil fuel capacity will increase to around 57.4% of the total electricity mix by the end of 2026-2027, growing to 68.4% by 2031-2032. 
  • Last Mile Connectivity: Development of off-grid and decentralised renewables under a framework for Promoting Decentralised Renewable Livelihood Applications.
• Deployment of  Solar Energy: Through the National Solar Mission, a set of policy measures are designed to encourage the rapid deployment of solar PV throughout the country. 
• • India saw a four-fold increase in renewables capacity between 2014 and 2022, much of this from solar photovoltaic.
• Electric Vehicles (EV): The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme positively supports EV development, which is a major opportunity and could enable India to advance on the decarbonisation of road transport.
  • The EV industry is expected to grow at a compound annual growth rate of 49% between 2022 and 2030, creating 50 million jobs by 2030.
  • In 2022, India witnessed record breaking levels of financial flows to the transition, driven by the doubling of investment in electrified transport.
• Improve Renewable Energy Capacity: The National Electricity Plan (2022-2032) has a projection of total capacity addition with the target of the country to achieve a non-fossil based installed capacity of around 500 GW by the year 2029-30. The government also signaled significant support for rapidly developing offshore wind. 

Way Forward:

• Ensuring NDC Targets are Fulfilled: India’s Nationally Determined Contributions (NDC) states that it will reduce the emissions intensity of its GDP by 45% by 2030. In the longer term it aspires to achieve net zero by 2070. Its overall approach to decarbonising the economy is set out in the Long-Term Low-Emission Development Strategy (LT-LEDS).
• Carbon Capture Technologies: The wide-scale deployment of:
  • Carbon Capture, Utilization, and Storage (CCUS) technology: It can help capture CO2 emissions from power plants or industrial sites and either reuse or store them underground so they don’t enter the atmosphere. 
  • Advanced Solvent Carbon Capture (ASCC) technology: It is designed to capture carbon dioxide emissions from post-combustion flue gasses, which are difficult to treat due to the low CO2 concentration and low-pressure characteristic of these sources. 
• Battery Manufacturing: India has the potential to develop its own manufacturing further, creating millions of jobs in the new industrial era.
  • India plans to develop 12 giga factories for manufacturing lithium-ion (Li-ion) batteries for both the domestic market and export.
  • Advanced Battery Energy Storage Systems (BESS) will make it possible for more efficient consumption of electricity from clean sources. 
• Solar and Wind Industry: India has the opportunity to be a showcase of an emerging economy decarbonising its power sector, with the potential to leapfrog into the new industrial era if it successfully attracts foreign public and private finance for its renewable energy plans.
• Leadership in Green Hydrogen: Hydrogen holds the promise as a cleaner energy alternative for transportation, power generation, steel production and other industrial applications.
  • With the National Green Hydrogen Mission, India aims to become a hub of green hydrogen production as well as exports with production capacity is expected to reach 5 Million Metric Tonnes per annum. 
• Circular Economy and Waste Management: Implement a circular economy approach to reduce waste and promote recycling and reuse. Modernize waste management systems to reduce emissions from landfills.

Conclusion:

A transition to clean energy is a huge economic opportunity for any country, especially India. As a developing economy with over 1.4 billion people, India’s decarbonization and net-zero ambitions are not just transformational for India but for the entire planet. 

News Source: The Economic Times

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Context

In order to successfully tackle, it is important to understand how unemployment is defined and measured in a developing economy like India.

More on News.

• According to the Periodic Labour force Survey (PLFS) 2017, unemployment rate of India was highest i.e 6.1%. However a recent PLFS report (2021-22) showed declining trends i.e  4.1%.
• One Size Does Not Fits All: The economies of the U.S (industrialized) and India (developing) are very different. As such, the methods used to measure unemployment are very different.

About Unemployment:

• Definition: According to the International Labour Organisation (ILO), an unemployed person is a person aged 15 or over who simultaneously meets three conditions
  • Unemployment is being out of a job.
  • Being available to take a job.
  • Actively engaged in searching for a job. 
• Trends in unemployment rates in india: Refer table 1.

Methodology of measuring unemployment in India

• The National Sample Survey Office (NSSO) launched the PLFS with the primary objectives of providing more frequent and comprehensive labor force data. The PLFS has two main objectives:
  • To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) for the urban areas only in the ‘Current Weekly Status’ (CWS).
  • To estimate employment and unemployment indicators in both ‘Usual Status’ and CWS in both rural and urban areas annually
• Center for Monitoring the Indian economy (CMIE) conducts its own survey and periodically presents data and reports on unemployment following different methodology.

Key Challenges in Methodology of Measuring Unemployment

• Conceptual framework of key employment and unemployment indicators
  • An individual’s principal status is based on the activity in which they spent relatively a long time in the previous year. 
  • The CWS adopts a shorter reference period of a week.
• Informal nature of  job markets: In terms of employment share the unorganized sector employs 83% of the work force and 17% in the organized sector. 
  • There are 92.4% informal workers (with no written contract, paid leave and other benefits) in the economy.
• Agrarian Economy: The low bar for classifying an individual as employed is why rural areas tend to have lower unemployment rates than urban areas. 
  • For instance, in agrarian economies, individuals have better chances of finding some kind of work, even if it is informal.
• Social Norms and Gender Roles:
  • Traditional gender roles often place the responsibility of domestic work and caregiving on women. 
  • For instance, 29.4% of women (aged 15-59) were part of India’s labor force in 2021-22, in contrast, men’s LFPR was 80.7% in 2021-22.
• Lockdown Effect (Covid-19) : the different measurement criteria may not fully capture the effects of such disruptions, leading to discrepancies in reported unemployment rates.

Steps taken to address unemployment by Central government

• Atma Nirbhar Bharat Package: The government announced the Aatmanirbhar Bharat package to stimulate business and mitigate the impact of COVID-19. It includes various long-term schemes and policies for self-reliance and employment opportunities.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Statutory guaranteed 100 days employment for an unskilled worker in rural areas.
• Flagship Programme: Initiatives like and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) are encouraged for employment generation.
• Others: Make in India, Start-up India, Digital India, Smart City Mission, Housing for All, and Industrial Corridors are also oriented towards creating employment opportunities.

WAY FORWARD

• Incorporate Underemployment: The current methodology primarily focuses on open unemployment and does not adequately capture underemployment. 
  • Expanding the definition to include those who are employed but not fully utilizing their skills or working fewer hours than desired.
• Regular and Comprehensive Surveys: It can help capture fluctuations in employment patterns and provide policymakers with timely information.
• Improve Data Quality and Consistency: By investing in training for surveyors and adopting modern data collection technologies to minimize errors.
• Include Informal Sector: A significant portion of India’s workforce is employed in the informal sector, which often goes unaccounted for in official statistics. 
  • Develop methodologies to better capture informal employment and its dynamics.
• Seasonal Employment Adjustment: Develop methods for seasonally adjusting unemployment rates, especially in sectors like agriculture where employment patterns vary throughout the year.
• Utilize Technology: To track employment trends in real-time. 
  • This can include analyzing online job portals, social media, and other digital sources for labor market insights.

SOURCE : THE HINDU

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