ARTICLE 370
1. Context
2. Article 370 of the Indian Constitution
Article 370 of the Indian Constitution is a provision that granted special autonomous status to the state of Jammu and Kashmir (J&K). It played a crucial role in shaping the relationship between the Indian government and the region but has also been a topic of intense debate and controversy. This article aims to provide an overview of Article 370, its historical context, key provisions, and the debates surrounding its revocation.
3. Historical Context
Article 370 was incorporated into the Indian Constitution in 1949, during the process of integrating the princely states into the newly independent India. At the time, Jammu and Kashmir was a princely state ruled by Maharaja Hari Singh. The article was introduced to accommodate the unique circumstances of the region and to respect the wishes of its people.
4. Key Provisions of Article 370:
- Autonomy: Article 370 granted Jammu and Kashmir a certain degree of autonomy, allowing it to have its own constitution, flag, and the power to legislate on matters other than defense, foreign affairs, and communications.
- Application of Central Laws: The central government had limited jurisdiction in the state, and its laws were only applicable if the state government specifically consented.
- Dual Citizenship: Residents of Jammu and Kashmir were considered citizens of both the state and India. This provision was meant to preserve the distinct identity of the region.
5. Contemporary Debates and Criticisms:
- Integration vs. Alienation: Critics of Article 370 argued that it perpetuated a sense of separatism and hindered the integration of Jammu and Kashmir with the rest of India. They claimed that the special status prevented the extension of progressive laws and policies to the region.
- Gender Inequality: Another point of contention was the discriminatory provision that denied property rights to women who married individuals from outside the state. This provision was seen as undermining the principles of gender equality and human rights.
- National Security Concerns: Some argued that the autonomous status provided by Article 370 hindered the Indian government's ability to effectively tackle security challenges in the region, particularly the cross-border militancy.
6. Revocation of Article 370
In August 2019, the Indian government, under the leadership of Prime Minister Narendra Modi, made the historic decision to revoke the special status of Jammu and Kashmir. The government argued that this move would facilitate the integration of the region and bring socio-economic development to its people. However, the revocation was met with mixed reactions, both within and outside of the region.
7. Way forward
Article 370 of the Indian Constitution was a unique provision that granted special autonomous status to the state of Jammu and Kashmir. While it aimed to respect the aspirations of the people of the region, it also sparked debates and controversies. The decision to revoke Article 370 in 2019 marked a significant shift in the relationship between the Indian government and Jammu and Kashmir. The consequences of this decision, both positive and negative, are still unfolding, and the future trajectory of the region remains uncertain.
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For Prelims: Article 370, Jammu and Kashmir (J&K), Maharaja Hari Singh, Central laws, Dual Citizenship, Gender inequality. For Mains: 1. Discuss the historical background and significance of Article 370 of the Indian Constitution. Analyze its provisions and their impact on the governance and autonomy of Jammu and Kashmir. (250 words). |
Previous year Question1. When did the Constitution of Jammu and Kashmir come into force? (UPSC CAPF 2016) A.26th January 1957 B. 15th August 1947 C. 25th July 1956 D.14th November 1947 Answer: A 2. State Legislature of Jammu and Kashmir can confer special rights and privileges on permanent residents of J and K with respect to - (MPSC 2019) Find the correct options below. (a) Employment under State Government (b) Settlement in the state (c) Acquisition of immovable property (d) Right to Scholarship (e) Right to entry into heritage sites A. (a), (b), (c), (d), (e) B. (a), (b), (c), (d) C. (a), (b), (c) D. (a), (b) Answer: B |
NON PERFORMING ASSET (NPA)
A Non-Performing Asset (NPA) refers to a classification used by financial institutions, primarily banks, to categorize loans or advances that are in default or are in arrears on scheduled payments of principal or interest. In simpler terms, when a borrower fails to make interest or principal payments for a certain period of time, typically 90 days or more past the due date, the loan is classified as a non-performing asset.
NPAs are detrimental to banks and financial institutions as they indicate a risk of default and can lead to financial losses. These assets can hamper the lender's ability to generate income through interest and can also impact their capital adequacy and liquidity.
Financial institutions employ various strategies to manage and recover NPAs, such as restructuring loans, loan recovery processes, selling off bad debts to asset reconstruction companies, or writing off the non-recoverable amount from their books
3. NPA (Non-Performing Assets) –Classifications
Non-performing assets (NPAs) are classified based on the period for which the loan remains overdue and the likelihood of recovery. The classifications typically involve three categories:
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Substandard Assets: These are assets that have remained non-performing for less than or equal to 12 months. They are characterized by the bank or financial institution experiencing a potential loss if full repayment occurs. Substandard assets have a higher risk of turning into bad loans.
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Doubtful Assets: These assets have remained in the non-performing category for more than 12 months. There is a significant risk associated with these assets, where the full repayment of the loan is highly uncertain. However, there might still be some potential, albeit remote, for recovery.
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Loss Assets: When the assets' loss has been identified by the bank or financial institution or an external auditor, and these assets have very little chance of recovery, they are classified as loss assets. These assets are considered uncollectible and of such little value that their continuance as assets is not warranted, and the entire outstanding balance is written off.
These classifications are crucial for banks and financial institutions to assess the health of their loan portfolios and take appropriate measures to manage and mitigate risks associated with NPAs
Bank fraud and Non-Performing Assets (NPAs) are two distinct issues in the banking sector, although they can sometimes be interconnected.
Bank Fraud: Bank fraud involves deliberate deception or dishonest actions carried out by individuals or groups, intending to gain an unfair or unlawful advantage, causing financial loss to the bank or its customers. Fraud can take various forms, such as embezzlement, forgery, loan fraud, identity theft, money laundering, or manipulating financial statements. It's essentially a criminal act involving deceit, misrepresentation, or illegal activities that lead to financial losses for the bank.
Non-Performing Assets (NPAs): NPAs refer to loans or advances that have stopped generating income for the bank because the borrower has defaulted on repayment. When a borrower fails to pay interest or principal for a specified period, typically 90 days or more, the loan is classified as an NPA. NPAs can arise due to various reasons such as economic downturns, borrower insolvency, mismanagement, or inadequate risk assessment by the lending institution.
While these issues are distinct, there can be situations where bank fraud contributes to the creation of NPAs. For instance, if a fraudulent loan is issued based on false documents or misrepresented information, it might result in the borrower defaulting on payments, eventually turning the loan into an NPA
5. What are the impacts of Non-Performing Assets (NPA)
Non-Performing Assets (NPAs) can have significant impacts on banks, the economy, and the overall financial ecosystem.
Here are some of the key effects:
- NPAs erode a bank's profitability as they stop generating income through interest payments. This affects the bank's ability to lend further and impacts its overall financial health. A high level of NPAs can weaken a bank's capital base, affecting its ability to absorb losses and maintain stability
- Banks with high NPAs become cautious about lending, especially to risky sectors or borrowers, leading to a credit crunch. This restricted lending can hamper economic growth as businesses and individuals find it challenging to secure credit for expansion or investment
- High NPAs can dent depositor and investor confidence in the banking system. Customers might withdraw deposits or shift to more stable institutions, causing liquidity issues for the affected bank
- NPAs can have broader economic repercussions. When banks face financial strain due to NPAs, their ability to support economic growth through lending diminishes. This can affect employment, investments, and overall economic development
- Regulators monitor and impose stricter norms on banks with high levels of NPAs to ensure financial stability. Banks might face regulatory penalties or restrictions, impacting their operations and growth prospects
- Banks might need additional capital infusion to cover the losses arising from NPAs. This can strain the bank's resources or necessitate seeking external funding, impacting shareholders and overall financial planning
Controlling Non-Performing Assets (NPAs) is crucial for the financial health of banks and the stability of the financial system. Several measures can be implemented to manage and control NPAs effectively:
Prudent Lending Practices: Implementing robust credit appraisal and risk assessment mechanisms before disbursing loans can prevent potential NPAs. Thoroughly evaluating borrower creditworthiness, financial stability, and collateral can mitigate risks.
Early Detection and Monitoring: Early identification of potential NPAs is crucial. Banks should closely monitor repayment schedules and intervene at the first signs of distress. Timely action can prevent assets from slipping into the NPA category.
Loan Restructuring and Rescheduling: Offering viable borrowers alternative repayment structures can help them meet their obligations. Loan restructuring involves altering repayment terms, interest rates, or extending the tenure to make repayments more manageable.
Asset Quality Review (AQR): Conducting regular asset quality reviews helps in identifying stressed assets early on. This enables banks to take proactive measures to prevent assets from turning into NPAs.
Asset Reconstruction Companies (ARCs): Collaborating with ARCs allows banks to transfer NPAs to specialized entities that focus on recovering these assets. It helps banks clean up their balance sheets and concentrate on core operations.
Strengthening Recovery Mechanisms: Banks should have robust recovery mechanisms in place, including legal recourse and debt recovery tribunals, to expedite the recovery of NPAs. Effective recovery minimizes losses for the bank.
Loan Recovery through Securitization and Asset Sale: Selling NPAs to other entities or securitizing them can provide liquidity and reduce the burden on banks. However, this should be balanced with ensuring fair value realization.
Prudential Norms and Regulatory Compliance: Adhering to prudential norms set by regulatory authorities helps in maintaining healthy asset quality. Compliance with regulations ensures timely recognition and provisioning for NPAs.
Debt Recovery Tribunals (DRTs) and SARFAESI Act: Utilizing legal mechanisms like DRTs and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act expedites the recovery process and acts as a deterrent against defaulting borrowers
7. Way forward
Implementing these measures collectively and consistently can aid in controlling NPAs, maintaining a healthy loan portfolio, and preserving the stability of the banking sector.
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For Prelims: Current events of Economy in Indian Scenario, RBI measurement to Control Non Performing Assets (NPAs) For Mains: General Studies III: Non Performing Asset (NPAs), Bad Bank |
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Previous Year Questions 1.Consider the following statements: Non-performing assets (NPAs) decline in value when (UPSC ESE 2018) 1. Demand revives in the economy. 2. Capacity utilization increases. 3. Capacity utilization, though substantive, is yet sub-optimal. 4. Capacity utilization decreases consequently upon merger of unit. Which of the above statements are correct? A.1, 3 and 4 only B.1, 2 and 4 only C.1, 2 and 3 only D.1, 2, 3 and 4 Answer (C) |
Source: Indianexpress
DOOR DELIVERY OF ALCOHOL
- There are two primary reasons supporting the idea of delivering alcohol directly to homes. Firstly, excise taxes on alcohol sales can significantly boost revenue for both Central and State governments.
- In many states, alcohol sales taxes contribute up to 25% of the government's total revenue. Secondly, home delivery of alcohol can potentially decrease drunk driving incidents, thereby reducing road traffic accidents and related injuries. In India, alcohol use accounts for 6-48% of fatal road traffic accidents.
- Another argument suggests that doorstep delivery may not compromise the safety of women consumers. Evidence from Kerala indicates that closing bars that sell hard liquor has led to a reduction in on-premise violence against women. Doorstep delivery might offer a similar benefit, particularly for women living alone or with other women.
- However, this perspective has its challenges. For the majority of women in India, safety cannot be guaranteed, as domestic violence related to alcohol consumption is widespread. While doorstep delivery might help women access alcohol without facing social stigma, it remains uncertain if it will actually reduce violence against them
- Research indicates that in India, the costs associated with alcohol use outweigh the economic benefits from alcohol sales.
- Additionally, the assumption that doorstep delivery of alcohol will lead to changes in drinking and socializing behaviors requires concrete evidence, despite being reasonable. Some evidence suggests that on-demand alcohol availability can lead to increased consumption, binge drinking, and related harms.
- Moreover, it is not a given that doorstep alcohol delivery will reduce drunk driving. There are other proven policies that can address this issue more effectively, such as sobriety checkpoints, strict penalties for repeat offenders, and enhancing the availability of public transportation and ride-sharing options
- Alcohol is a carcinogen linked to at least seven types of cancer. Its consumption also raises the risk of injuries, substance abuse, mental illnesses, diabetes, liver disease, cardiovascular diseases, and chronic kidney diseases. Additionally, male alcohol misuse heightens the risk and severity of inter-partner violence.
- The treatment costs for alcohol-related diseases and injuries in India are projected to exceed ₹3 lakh crore between 2011 and 2050.
- When factoring in productivity losses, this figure rises to ₹121.3 lakh crore. Government revenue from excise taxes on alcohol will cover only one-fifth of these financial losses.
- Globally, the alcohol industry is known for its intense lobbying efforts, including attempts to weaken health warning labels.
- It also sees low- and middle-income countries as emerging markets. In India, the industry has actively opposed policies aimed at reducing alcohol use, despite evidence of their effectiveness
- Apart from a few national policies, such as drunk driving laws and health warning labels, alcohol-use policies are largely managed by individual states, leading to significant variation in how these policies are framed and implemented.
- Both State and Central governments have tools at their disposal to address the harms associated with alcohol use through comprehensive public health strategies.
- These include limiting the availability and marketing of alcohol, increasing taxes, enforcing drunk driving laws, and investing in effective psychosocial treatments for alcohol-use disorders.
- If doorstep delivery is to be implemented, for example, states can influence consumer behavior by setting higher prices and taxes, shifting the decision from whether to order alcohol to whether to drink at all.
- Additionally, governments should collaborate with health departments and other organizations to monitor the impact of doorstep delivery on alcohol consumption.
- Companies providing these services must supply accurate data to the government to help assess the health and economic impact. If negative effects are observed, the policy should be reconsidered
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For Prelims: Current events of national and international importance
For Mains: GS II - Government policies regarding alcohol consumption and online sale
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SUB QUOTAS OF SCHEDULED CASTE (SC)
- The Andhra Pradesh Scheduled Castes (Rationalisation of Reservation) Ordinance, 1999, and the subsequent Act created four groups—A, B, C, and D—within the Scheduled Castes, each allocated different reservation percentages.
- This sub-classification aimed to address the varying levels of advancement among the communities listed as Scheduled Castes and to ensure representation for the less advanced castes. The Andhra Pradesh High Court upheld the Act against legal challenges.
- However, the Supreme Court's Constitution Bench of five judges declared this sub-classification unconstitutional. In the November 2004 judgment in E.V. Chinnaiah vs State of Andhra Pradesh, the Court emphasized that under Article 341 of the Constitution, the President is responsible for notifying the Scheduled Castes list, which can only be altered by an act of Parliament, not by further notifications.
- The Bench ruled that once listed under Article 341, Scheduled Castes form a single homogeneous class, and state legislatures lack the authority to further classify them into separate groups
- Six of the seven judges have now determined that the 2004 ruling was incorrect. Chief Justice D.Y. Chandrachud, along with Justice Manoj Mishra, concluded that SC communities should not be considered a homogeneous class as previously judged.
- He contested the notion that listing SCs creates a presumption of uniform status among them. While SCs share a common constitutional identity due to their shared experiences of untouchability and discrimination, this does not negate the diversity within these communities.
- Citing both historical and empirical evidence, Chief Justice Chandrachud demonstrated that significant differences exist among SC communities, with instances where some SC groups have faced discrimination from others within the same category.
- Thus, sub-classification is permissible if it is based on a clear and rational distinction with a valid purpose. This sub-classification is subject to judicial review, and the State must justify it with empirical data.
- Chief Justice Chandrachud also clarified that sub-classification does not alter the Presidential list of SCs and does not breach Article 341, which gives the President exclusive authority to notify Scheduled Castes.
- Article 341 serves to define who falls under the SC category, but states have the autonomy to recognize varying degrees of backwardness and provide special provisions or extend reservation benefits accordingly.
- The new ruling is anticipated to encourage states to allocate sub-quotas for the most marginalized Dalit sections who have not benefited from reservations to date.
- In her dissent, Justice Bela Trivedi upheld the Chinnaiah doctrine, arguing that sub-classification of a homogeneous class is impermissible and constitutes an alteration of the President’s list under Article 341
- The creamy layer concept is currently applicable only to Other Backward Classes (OBCs) and has not been extended to Dalit communities. Justice B. R. Gavai, who concurs with the Chief Justice in a separate opinion, elaborated on the need to identify more advanced members within the Scheduled Castes and exclude them from affirmative action benefits.
- Justice Gavai argued that treating all members of a community equally may not be just, especially when considering differences in social and economic status.
- He questioned whether the children of IAS or IPS officers should be given the same benefits as children from remote villages within the same community, given their differing access to resources and opportunities.
- He emphasized that combining such disparate groups under the same category would undermine the principle of equality. However, he also noted that the criteria for excluding the creamy layer among SCs should differ from those used for OBCs. Three other judges supported his perspective. Despite this, their opinions do not mandate the government to apply the creamy layer concept to SCs, as this issue was not directly addressed in the case at hand
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For Prelims: Current events of national and international importance
For Mains: GS-II: Government policies and intervention
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Previous Year Questions
Prelims 1.Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India: (UPSC CSE 2019) 1. PVTGs reside in 18 states and one Union Territory. 2. A stagnant or declining population is one of the criteria for determining PVTG status. 3. There are 95 PVTGs officially notified in the country so far. 4. Irular and Konda Reddi tribes are included in the list of PVTGs. Which of the statements given above are correct? (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1, 2 and 4 (d) 1, 3 and 4 Answer (c)
Given this analysis, the correct statements are 1, 2, and 4 Mains 1.What are the two major legal initiatives by the state since independence addressing discrimination against Scheduled Tribes (STs)? (UPSC CSE 2017) |
AMRUT SCHEME
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a Government of India initiative launched in June 2015 to improve basic civic amenities in urban areas. This mission aimed to address critical infrastructure challenges in water, mobility, and pollution through a combination of central financial assistance and resource mobilization by states and cities.
Key Objectives of AMRUT
- Ensure every household has access to a tap with a guaranteed water supply and a sewerage connection.
- Increase the amenity value of cities by developing well-maintained parks and green spaces.
- Reduce pollution by promoting public transport and infrastructure for non-motorized transport like cycling and walking.
AMRUT 1.0 (2015-2020)
- Focused on 500 cities and towns with over one lakh population.
- Total outlay of ₹50,000 crore for five years (FY 2015-16 to FY 2019-20).
- Shared funding between central government, states, and cities.
AMRUT 2.0 (2021-2026)
- Aims to make cities "water secure" by providing functional water tap connections to all households in all statutory towns.
- Ambitious targets include 100% sewage management in the original 500 AMRUT cities.
- Increased total outlay of ₹2,99,000 crore for five years.
- Central government outlay of ₹76,760 crore with the remaining amount to be mobilized by states and cities.
3. Funds Utilized Under AMRUT Scheme
As of May 19, 2024, the AMRUT dashboard reports a total of ₹83,357 crore disbursed for various urban development projects. This investment has yielded significant progress
- 58,66,237 tap connections have been provided to households.
- 37,49,467 sewerage connections have been established.
- 2,411 new parks have been developed, enhancing urban green spaces.
- 62,78,571 LED lights have been installed, contributing to reduced energy consumption.
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For Prelims: AMRUT Scheme, Ministry of Housing and Urban Affairs,
For Mains:
1. What are the environmental concerns associated with the current model of urban development in India, as highlighted by the shortcomings of AMRUT? Suggest measures for promoting sustainable urban infrastructure. (250 Words)
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DEMOGRAPHIC DIVIDEND
- The demographic dividend refers to a period of economic growth that can occur when a country experiences a favorable demographic shift. This shift typically involves a declining birth rate, leading to a relatively large working-age population compared to the dependent population (children and elderly).
- During a demographic dividend, the working-age population becomes a larger proportion of the total population, leading to increased productivity, higher savings and investment rates, and overall economic growth.
- This phenomenon occurs because there are fewer dependents to support, allowing families and governments to allocate more resources towards education, healthcare, and infrastructure development.
- The demographic dividend is often seen as an opportunity for countries to accelerate their economic development and improve living standards.
- However, to fully realize the benefits of the demographic dividend, governments need to invest in education, job creation, and healthcare to ensure that the growing working-age population is equipped with the skills and opportunities needed to contribute to economic growth. Additionally, effective policies are necessary to manage the challenges associated with an ageing population that may follow once the demographic dividend period ends
The demographic transition theory outlines the process through which populations transition from high birth and death rates to low birth and death rates as they undergo economic and social development.
This transition typically occurs in several stages:
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Stage 1 - High Birth and Death Rates: In the initial stage, both birth rates and death rates are high, resulting in relatively slow population growth. This stage is characteristic of pre-industrial societies where limited access to healthcare, high infant mortality rates, and agricultural economies contribute to high death rates. Despite the high death rates, birth rates are also high due to factors such as the need for labor in agriculture and cultural preferences for large families.
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Stage 2 - Declining Death Rates: In this stage, improvements in healthcare, sanitation, and nutrition lead to a significant reduction in death rates while birth rates remain high. As a result, there is a rapid increase in population growth. This stage is often associated with the early stages of industrialization and urbanization, where advancements in medicine and public health lead to lower mortality rates.
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Stage 3 - Declining Birth Rates: As societies continue to develop economically and socially, birth rates begin to decline. Factors such as increased access to education, urbanization, and the empowerment of women contribute to this decline in fertility. Family planning programs and the availability of contraceptives also play a role in reducing birth rates. During this stage, population growth continues, but at a slower pace than in Stage 2.
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Stage 4 - Low Birth and Death Rates: In the final stage of the demographic transition, both birth and death rates are low, resulting in a stable or slowly growing population. This stage is characteristic of advanced industrialized societies where economic development, urbanization, and social changes have led to small family sizes, increased opportunities for women in the workforce, and higher living standards overall.
| Subject | Demographic Transition | Demographic Dividend |
|---|---|---|
| Definition | Process of transitioning from high to low birth and death rates as societies develop economically and socially. | Period of economic growth resulting from a favorable demographic shift, typically characterized by declining birth rates and a relatively large working-age population. |
| Focus | Changes in population structure and dynamics over time. | Economic benefits derived from a specific demographic situation. |
| Key Stages | Pre-industrial (High birth and death rates), Early industrial (Declining death rates), Late industrial (Declining birth rates), Advanced industrial (Low birth and death rates). | Period when the working-age population is a larger proportion of the total population, leading to increased productivity and economic growth. |
| Driving Factors | Improvements in healthcare, education, living standards, and changes in social norms and family planning practices. | Declining birth rates and a growing working-age population. |
| Economic Impact | Leads to changes in population growth rates and age distribution. | Results in increased productivity, higher savings and investment rates, and overall economic growth. |
| Policy Implications | Requires investments in healthcare, education, and family planning to manage population dynamics effectively. | Governments need to implement policies to capitalize on the economic potential of the growing working-age population through education, job creation, and infrastructure development. |
India's demographic dividend holds significant implications for its economic growth, social development, and global competitiveness.
Here are some key aspects of the significance of India's demographic dividend:
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Large Working-Age Population: India is home to one of the largest working-age populations in the world, with a significant proportion of its population under the age of 35. This demographic advantage presents an opportunity for a substantial labor force that can drive economic growth and development.
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Potential for Economic Growth: A large working-age population can contribute to increased productivity, innovation, and entrepreneurship, leading to higher economic growth rates. With the right policies and investments in education, skills training, and job creation, India can harness the potential of its demographic dividend to accelerate economic development.
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Increased Consumer Market: A growing working-age population also translates into a larger consumer market, creating opportunities for businesses to expand their markets and drive domestic consumption-led growth. This can spur demand for goods and services across various sectors of the economy, further stimulating economic activity.
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Global Workforce Competitiveness: India's demographic dividend enhances its competitiveness in the global workforce. With a large pool of young and skilled workers, India can meet the demands of the global labor market and attract investment from multinational companies seeking talent and expertise.
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Human Capital Development: Investing in education, healthcare, and skill development is crucial to fully realize the potential of India's demographic dividend. By empowering its youth with quality education and training, India can build a skilled workforce capable of driving innovation, productivity, and sustainable development.
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Window of Opportunity: The demographic dividend is not permanent and requires timely policy interventions to maximize its benefits. As India's population ages in the future, the window of opportunity presented by the demographic dividend will gradually diminish. Therefore, strategic planning and investments in human capital and economic sectors are essential to capitalize on this demographic advantage
While India's demographic dividend presents significant opportunities for economic growth and development, it also comes with several challenges that need to be addressed to fully realize its potential.
Some of the key challenges associated with India's demographic dividend include:
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Unemployment and Underemployment: Despite the large working-age population, India faces challenges of unemployment and underemployment, particularly among youth and educated individuals. Inadequate job creation in both the formal and informal sectors leads to a mismatch between the skills of the workforce and the demands of the labor market.
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Skills Mismatch: There is often a mismatch between the skills possessed by the workforce and the skills demanded by employers. Many young people lack the necessary skills and training required for employment in emerging sectors such as technology, manufacturing, and services. This skills gap hampers productivity and limits job opportunities.
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Quality of Education: While access to education has improved in India, there are concerns about the quality of education provided, especially in rural areas and government schools. The education system often fails to equip students with the skills and knowledge needed to succeed in the modern workforce, leading to low employability.
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Informal Economy: A significant portion of India's workforce is employed in the informal sector, which lacks job security, social protection, and access to basic rights. Informal workers often face low wages, exploitative working conditions, and limited opportunities for skill development and career advancement.
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Gender Disparities: Gender disparities in education, employment, and workforce participation remain significant challenges in India. Women are often underrepresented in the workforce, particularly in higher-skilled and leadership roles. Addressing gender inequalities and promoting women's participation in the labor force is crucial for maximizing the demographic dividend.
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Urbanization and Infrastructure: Rapid urbanization and migration from rural to urban areas pose challenges related to urban infrastructure, housing, transportation, and social services. Inadequate urban planning and infrastructure development lead to overcrowding, pollution, inadequate housing, and strained public services, affecting the quality of life for urban residents.
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Healthcare Needs: As the population grows, there is an increasing demand for healthcare services, including preventive care, maternal and child health, and treatment of non-communicable diseases. Ensuring access to quality healthcare for all citizens is essential for maintaining a healthy and productive workforce
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For Prelims: Economic and Social Development- Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment
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Previous Year Questions
1.India is regarded as a country with a “Demographic Dividend”. This is due to (UPSC CSE 2011) (a) Its high population in the age group below 15 years (b) Its high population in the age group of 15-64 year (c) Its high population in the age group above 65 years (d) Its high total population Answer (b) A demographic dividend refers to the economic benefit a country can experience when a large share of its population is in the working age group (typically 15-64 years old). This age group is both productive and has a relatively low dependency ratio, meaning there are fewer dependents (children and elderly) to support. India currently has a large young population, which presents a window of opportunity for economic growth if the right investments are made in education, skill development, and job creation |
