1. Export data for January suggests that the problems with global shipping have not yet reached home.
Topic: GS3 – Indian Economy – Effects of liberalization on the economy
The news, which explores India’s goods exports, trade deficit, and economic challenges and offers insights into economic dynamics, is critical to UPSC.
| Context |
| – India’s goods trade deficit significantly decreased in January despite a 3.1% increase in goods exports. – Disruptions in the Red Sea have little effect, but trade uncertainties continue worldwide. |
Indian Goods Exports Overview:
- India’s goods exports saw a modest 3.1% growth in January of 2023–24, which is the fourth month of growth.
- At about $354 billion, the total value of merchandise exports for the year is 4.9% less than last year.
- With $36.9 billion in exports, January’s total is 4% less than December’s but still higher than the yearly monthly average.
Red Sea Disruptions and Impact:
- Global trade corridors have been disrupted by the Houthi rebels in the Red Sea, but January’s trade figures indicate that the impact is not particularly concerning.
- The growth of engineering goods exports stalled, while the value of gems and jewellery fell slightly by 1.3%.
- It is noteworthy that the disruptions in the Red Sea have not had a more pronounced effect.
Goods Trade Deficit and Imports:
- The goods trade deficit decreased from a record high of almost $30 billion three months earlier to a nine-month low of $17.5 billion in January.
- The weakening of investment and consumption impulses is indicated by the slack in imports of electronics and project goods, which is the cause of import bill compression.
Outlook and Challenges:
- The Indian government hopes to surpass the $776 billion record export performance in 2022–2023 despite global challenges; however, it will be challenging to surpass the $451 billion goods total from the previous year.
- If they continue to grow at the predicted 6.3% rate, services exports could bring the total value of exports to almost $760 billion.
Uncertainties and Risks:
- With Germany and the United States sending conflicting or weak demand signals, the outlook for the upcoming year is unclear.
- The Houthi disruptions may continue to cause shipping challenges despite Operation Prosperity Guardian, influencing demand and competitiveness by affecting delivery times, driving up shipping rates, and increasing operating costs.
| Importance of Export Earnings for Indian Economy: |
| ● Economic Growth: ○ Export revenue makes up a sizable portion of India’s GDP, supporting stability and economic expansion. ○ The foreign exchange obtained from exports contributes to the reduction of trade deficits. ● Employment Opportunities: ○ A significant portion of the population is employed by export-oriented industries, which sustain their way of life. ○ Manufacturing and other labor-intensive industries, such as textiles, profit from export demand. ● Foreign Exchange Reserves: ○ India’s foreign exchange reserves are strengthened by export revenue, which promotes currency stability. ○ Reserves are essential for handling shocks from the outside world and fulfilling commitments made internationally. ● Technology and Skill Enhancement: ○ Advanced technologies are frequently adopted by export-oriented industries, which fosters innovation and skill development. ○ Indian goods and services become more competitive when they are exposed to international markets. ● Diversification of Markets: ○ Reduction of reliance on home markets alone offers protection against recessions. ○ Gaining access to a variety of global markets reduces the risks brought on by changes in the local economy. ● Attracting Foreign Direct Investment (FDI): ○ Strong export results draw in foreign capital, promoting the growth of the economy as a whole. ○ FDI inflows frequently coincide with industries that make a sizable contribution to export revenue. ● Global Competitiveness: ○ Engaging in global commerce increases industry competitiveness and pushes for efficiency and quality improvements. ○ It promotes economic resilience by making integration into global value chains easier. |
| PYQ: Explain the manufacturing sector’s inability to meet its objective of exporting labor-intensive goods rather than capital goods. Make recommendations for exporting goods that are more labor-intensive than capital-intensive. (150 words, 10 seconds) (CSE (M) GS-3, UPSSC 2017) |
| Practice Question: Analyse how export revenue has shaped India’s economy, paying particular attention to employment, foreign exchange reserves, and international competitiveness. (10 m / 150 words) |
2. KFD peaks in Karnataka; vaccination efforts have stagnated
Topic: GS2 – Social Justice – Health
The Kyasanur Forest Disease problems are important for raising public health awareness because they draw attention to obstacles in vaccine manufacturing and the necessity of intervention.
| Context |
| – The article emphasises the difficulties in developing a vaccine for Kyasanur Forest Disease (KFD) as a result of private apathy, with Karnataka registering new cases and requesting the ICMR’s support in this regard. |
Kyasanur Forest Disease (KFD): Overview
- The health minister of Karnataka points to the low number of cases as the reason why private companies are reluctant to produce the KFD vaccine.
- Following the statement, the districts of Shivamogga, Uttara Kannada, and Chikkamagaluru have reported two deaths and 103 infections.
Historical Background:
- KFD began in the Kyasanur Forest in 1956 and was first limited to Shivamogga before expanding to other districts and nearby states.
- Monkeys are afflicted with “monkey fever,” and their demises predict outbreaks. transferred by tick bites.
Spread and Impact:
- Since 1972, cases have been reported in a number of Karnataka districts; they reached Chamarajanagara in 2012 and Gadag in 2017.
- Found in Tamil Nadu, Kerala, Goa, and Maharashtra; since 1956, more than 560 people have died there.
Vaccination Efforts:
- 1.79 lakh people were vaccinated last year with a vaccine created in partnership with the National Institute of Virology and administered until 2019–20.
- Current research indicates that vaccines are ineffective; there is no specific treatment or vaccine available, only symptomatic care.
Vulnerability and Preventive Measures:
- Forest workers, wildlife workers, and hikers are the most vulnerable groups, and cases peak between December and June.
- Residents were given tick-repellent oil and advised to see a doctor if they experienced any symptoms. hospital care that is required for KFD patients.
Government Initiatives:
- The Karnataka government consults with Indian Immunologicals Limited and requests support from the ICMR for vaccine manufacturing.
- It’s unclear when the vaccine will be available, and this season is unlikely.
- There are continuing efforts to address Karnataka’s KFD surge situation.
Challenges and Outlook:
- The limitations of using market-driven approaches to address public health are highlighted by private disinterest.
- As the number of cases increases, the critical need for effective vaccination is highlighted, highlighting the importance of public health interventions.
Vulnerability and Preventive Measures:
- The problem of Kyasanur Forest Disease (KFD) highlights the crucial nexus between private interests and public health.
- Obstacles in the development of vaccines highlight the need for strong public health programmes and highlight the significance of taking preventative action to safeguard vulnerable populations and combat new diseases.
| tackling public health using methods dictated by the market |
| Advantages of Market-Driven Approaches: – Efficiency: In the healthcare industry, market-driven strategies foster efficiency by promoting competition, innovation, and resource optimisation. – Private Sector Engagement: Involving the private sector can improve service delivery through increasing investments, knowledge, and management effectiveness. – Innovation and Technology: Innovative ideas and the uptake of cutting-edge technologies are frequently stimulated by market-oriented solutions, which enhance patient outcomes. – Financial Sustainability: Revenue-generating market-driven models ensure financial sustainability and lessen reliance on public funding. – Consumer Choice: The introduction of market components increases consumer choice and gives people the ability to make knowledgeable healthcare decisions. Challenges: – Equity Concerns: Market-driven strategies might make healthcare disparities worse by favouring those with greater financial resources through unequal access and quality. – Regulatory Oversight: It can be difficult to maintain standards, prevent exploitation, and safeguard the public’s health with the right regulations and oversight in place. – Affordability: Certain populations may find it more expensive to receive healthcare services as a result of market-driven models in some situations. – Fragmentation: A healthcare infrastructure that is dispersed due to a market-oriented system may impede coordination and thorough public health planning. – Access Issues: Market-driven strategies may give more weight to lucrative services than necessary public health services, which could result in coverage gaps. |
| PYQ: What fundamental idea guides the creation of vaccines? How do immunisations function? Which methods did the Indian vaccine producers use to create the COVID-19 vaccines? (15 minutes, 250 words) (UPSC GS-3 2022 CSE (M)) |
| Practice Question: Talk about the benefits and drawbacks of using market-driven strategies to public health issues. (10 m / 150 words) |
3. The service industry is being led by engineering graduates.
Topic: GS2 – Social Justice – Education
Crucial to UPSC because it tackles the changing labour market, the skills gap, and offers solutions for the services-driven economy of India.
| Context |
| – The paper makes the case for the necessity of a general “service engineering” course while discussing the changing role of engineering graduates in India’s expanding services sector. – It calls for curriculum adaptation, highlights the transferability of engineering skills, and envisions India as a leader in service innovation. |
Growth of Services Sector:
- With a 53% share, the services sector makes a substantial contribution to India’s Gross Value Added (GVA).
- The distribution of employment favours the services sector, which created 31% of jobs compared to 25% in industries.
Engineering Graduates in Services:
- Despite low employability rates of 57%, a growing number of engineering graduates are entering the services industry.
- Because there aren’t enough opportunities in their primary industry, more than 80% of engineering graduates wind up in non-technical roles.
Transferability of Engineering Skills:
- Because of their flexibility, problem-solving approach, critical thinking, and organised thinking, engineers are highly valued in non-technical roles.
- Employers understand how engineering skills can be applied to a variety of dynamic, service-oriented roles.
Need for Generic Services-oriented Courses:
- There is a disconnect between the skills that employers are looking for and the courses that are currently offered in terms of general services orientation.
- A new course called “service engineering” is proposed, with the goal of providing students with industry-specific knowledge, soft skills, and technical proficiency.
Curriculum Design for Service Engineering:
- a comprehensive fusion of industry-specific knowledge, soft skills, and technical expertise.
- utilising cutting-edge technologies to improve employability, particularly in developing industries, such as AI and IoT.
Transformative Potential:
- The introduction of “service engineering” has the potential to revolutionise economic growth, service delivery, and employability.
- graduates with the know-how to work in a variety of industries in white-collar service positions.
Inclusivity and Accessibility:
- Students from tier 2 and tier 3 cities may be drawn to digital service engineering courses due to their accessibility and affordability.
- Possibility of encouraging more women to enter the workforce because services provide greater flexibility.
Cost-Effective Digital Learning:
- By utilising digital platforms, service engineering courses lower infrastructure costs and remove geographical constraints.
- Democratisation of education promotes diversity and helps professionals with different backgrounds reach their full potential.
India’s Global Leadership in Service Innovation:
- India can become a global leader in service innovation by investing in the development of a skilled labour force for the services industry.
- propels prosperity and competitiveness in the future services-based economy.
| Practice Question: How can India’s inclusive economic growth be promoted and the skills gap filled by the introduction of a “service engineering” course? (10 m / 150 words) |
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