{"id":158196,"date":"2025-03-08T20:37:11","date_gmt":"2025-03-08T15:07:11","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=editorial-analysis&#038;p=158196"},"modified":"2025-03-09T12:40:05","modified_gmt":"2025-03-09T07:10:05","slug":"social-sector-is-crucial-to-growth","status":"publish","type":"editorial-analysis","link":"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/social-sector-is-crucial-to-growth","title":{"rendered":"Social Sector is Crucial To Growth"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The <\/span><b>Economic Survey 2024-25<\/b><span style=\"font-weight: 400;\"> emphasizes that sustained growth requires both economic reforms and <\/span><b>human capital investment<\/b><span style=\"font-weight: 400;\">, with a strong focus on <\/span><b>education and healthcare<\/b><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Key Highlights of Economic Survey<\/b><\/span><\/h2>\n<ul>\n<li><b>Pillars: <\/b><span style=\"font-weight: 400;\">The Economic Survey 2024-25 highlights four crucial pillars for economic growth:<\/span>\n<ul>\n<li><b>Deregulation<\/b><\/li>\n<li><b>Private Participation<\/b><\/li>\n<li><b>Augmenting Capabilities<\/b><\/li>\n<li><b>Energy Transition<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment<\/b><span style=\"font-weight: 400;\">: However, for these pillars to be effective, investment in <\/span><b>human capital (education and health)<\/b><span style=\"font-weight: 400;\"> is essential.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Challenges in achieving Economic Growth<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Low Educational Attainment: <\/b><span style=\"font-weight: 400;\">90.2% of the workforce has only a secondary-level education or lower. 88.2% of the workforce is engaged in low-competency jobs, limiting income growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Job Market and Wages: <\/b><span style=\"font-weight: 400;\">Corporate profits grew by <\/span><b>22.3% in FY24<\/b><span style=\"font-weight: 400;\">, but employment increased only by <\/span><b>1.5%<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Employee expenses fell from <\/span><b>17% in FY23 to 13% in FY24<\/b><span style=\"font-weight: 400;\">, signaling a focus on cost-cutting over workforce expansion. This reflects <\/span><b>low productivity and the urgent need for upskilling<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inadequate Investment: <\/b><span style=\"font-weight: 400;\">Various government programs focus on <\/span><b>vocational and entrepreneurial skills<\/b><span style=\"font-weight: 400;\">. Investment in <\/span><b>education and health remains low<\/b><span style=\"font-weight: 400;\"> compared to BRICS peers.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For FY25, the budget allocations include \u20b99.2 lakh crore for Education (4.98% of GDP) and \u20b93.2 lakh crore for Health (3.33% of GDP).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">With a population of 144 crore, the <\/span><b>per capita expenditure<\/b><span style=\"font-weight: 400;\"> remains <\/span><b>inadequate<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fiscal Constraints: <\/b><span style=\"font-weight: 400;\">35-40% of government revenue goes towards <\/span><b>interest payments subsidies, and defense<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High Fiscal Deficit:<\/b><span style=\"font-weight: 400;\"> With a high fiscal deficit, spending on crucial sectors like education and health remains limited, as <\/span><b>Interest Payments<\/b><span style=\"font-weight: 400;\"> account for <\/span><b>20%<\/b><span style=\"font-weight: 400;\">, <\/span><b>Subsidies<\/b><span style=\"font-weight: 400;\"> for <\/span><b>6%<\/b><span style=\"font-weight: 400;\">, and <\/span><b>Defense<\/b><span style=\"font-weight: 400;\"> for <\/span><b>8%<\/b><span style=\"font-weight: 400;\"> of the 2025-26 Budget.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Low Tax Revenue: <\/b><span style=\"font-weight: 400;\">The decision to <\/span><b>exempt income up to \u20b912 lakh from taxes<\/b><span style=\"font-weight: 400;\"> contradicts the goal of increasing human capital investment.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Need of Investment in Education and Health<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Skill Development: <\/b><span style=\"font-weight: 400;\">Skill creation starts at the school level. <\/span><b>Government schools (serving 12 crore students with 50 lakh teachers) lack infrastructure and quality<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of Digital Access: <\/b><span style=\"font-weight: 400;\">During <\/span><b>COVID-19, rural students suffered due to lack of digital access<\/b><span style=\"font-weight: 400;\">. Need for <\/span><b>IT infrastructure and teacher training<\/b><span style=\"font-weight: 400;\"> to prepare for AI-driven jobs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher Education Reforms: <\/b><span style=\"font-weight: 400;\">India has <\/span><b>4.33 crore students in higher education<\/b><span style=\"font-weight: 400;\">. Investment in <\/span><b>new IITs and IIMs<\/b><span style=\"font-weight: 400;\"> is not enough\u2014focus needed on <\/span><b>research and skill-based learning<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Large disparities exist between <\/span><b>top-tier and second-tier institutions<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Healthcare Investment: <\/b><span style=\"font-weight: 400;\">Public healthcare needs more funding for <\/span><b>effective implementation of schemes and emergency preparedness<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Coordination: Centre-State coordination is crucial<\/b><span style=\"font-weight: 400;\"> for better outcomes. <\/span><b>Budget tax reliefs should not come at the cost of health and education spending<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Growth driven by <\/span><b>deregulation and private investment<\/b><span style=\"font-weight: 400;\"> must be supported by <\/span><b>strong human capital<\/b><span style=\"font-weight: 400;\">. <\/span><b>Investment in education and healthcare is critical<\/b><span style=\"font-weight: 400;\"> to sustaining economic momentum. <\/span><b>States should be incentivized to increase spending<\/b><span style=\"font-weight: 400;\"> in these crucial sectors.<\/span><\/p>\n<table style=\"width: 99.7982%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Mains Practice Question<\/b><\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/discuss-the-structural-weaknesses-in-indias-human-capital-development\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Q. India&#8217;s position in global health and education rankings remains low despite numerous <\/span><span style=\"font-weight: 400;\">government initiatives. Discuss the structural weaknesses in India&#8217;s human capital development and Suggest long-term reforms for improving quality and accessibility in education and healthcare. (15 Marks, 250 Words)<\/span><\/a><\/span><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Current Affairs Quiz<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Main Answer Writing<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-previous-year-papers?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Previous+Year+Papers\" target=\"_blank\" rel=\"noopener\"><b>Check Out Previous Years Papers From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Test Series<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC NCERT Textbooks From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-modules?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Modules\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC Modules From PW Store<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Economic Survey 2024-25 emphasizes that sustained growth requires both economic reforms and human capital investment, with a strong focus on education and healthcare<\/p>\n","protected":false},"author":11,"featured_media":158163,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2084],"subject":[2125],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/158196"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/editorial-analysis"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=158196"}],"version-history":[{"count":2,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/158196\/revisions"}],"predecessor-version":[{"id":158198,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/158196\/revisions\/158198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/158163"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=158196"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=158196"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=158196"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=158196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}