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[DAILY CURRENT AFFAIRS, 29 APRIL 2023]

NATIONAL HEALTH ACCOUNT

1. Context 

There has been a consistent increase in government spending, coupled with declining out-of-pocket expenditure by people on their healthcare needs shows the National Health Account Estimates 2019-20 was released.

2. Key Points

  • The government spent 1.35 per cent of the country's Gross Domestic Product (total value of the final goods and services in a year indicative of a country's economy) on healthcare during the year, bouncing back from a slight drop seen in 2018-19 as per the report.
  • The health account estimates describe the country's total expenditure on healthcare whether by the government, private sector, NGOs or individuals and the flow of these funds.

3. Findings of the report

3.1. Rise in Government spending on Health care

  • Government spending on healthcare has been on the rise. The money spent by the government on healthcare as a percentage of GDP has increased from 1.13 per cent in FY 2015 to 1.35 per cent in FY 2020.
  • Even this small percentage increase in the government's health kitty has translated into nearly double the money spent on each person the per capita health spending of the government in this period has increased from Rs 1, 108 to Rs 2, 014.
  • Although the number is still far from the target of 2.5 per cent investment in healthcare by 2025, the number is likely to shoot up in next year's report, with the increased government spending during the pandemic getting reflected.
  • The government's share in the total money spent on healthcare in the country went up by 12.4 percentage points between FY 2015 and FY 2020, increasing from 29 per cent to 41.4 per cent

3.2. Money spent by people

  • Money spent by people from their pocket on health care has been going down.
  • The report shows that 47/1 per cent of the total spending on health care in FY2020 came directly out of people's pockets.
  • But this is a 15.5 percentage point drop from 62.6 per cent of the spending coming out of pocket in FY 2015. 
  • The aim is to bring this down as low as possible by investing in public health and insurance among others so that people do not have to shell out the money when they are sick.

3.3. National Health Policy

  • A major chunk of the government's health spend was in the primary sector.
  • Out of the total spending by the government on healthcare in FY 2020, 55.9 per cent went to primary care, 29.6 per cent went to secondary care and 6.4 per cent went to tertiary care.
  • To compare, the government spent 51.3 per cent on primary care, 21.9 per cent on secondary care and 14 per cent on tertiary care in FY 2015.
  • It is heartening to see that there has been a consistent and fast increase in government spending on primary healthcare.
  • This is important because it forms the basis for preventive healthcare.
  • This has been articulated in the National Health policy that there will always be more spending on primary healthcare which is the backbone.
  • Now, there has been the great achievement of 1.5 lakh health and wellness centres across the country that can also screen people for cancers, diabetes and eye disease.

3.4. Social Security expenditure 

There has been a consistent increase in social security expenditure by the government, which increased from 5.7 per cent of the total spending on health in FY 2015 to 9.3 per cent in FY 2020.
 

4. India stands on Health expenditure

  • The marginal increase in government spending while there is a significant drop in out-of-pocket spending bothers.
  • The increase in government health expenditure as a percentage of GDP also takes into account capital spending (money spent on developing infrastructure).
  • Other countries look at only the current health expenditure, which for India stands at 1.04 per cent calculated based on this report.
  • This puts India in 164th place out of 184 countries in terms of government health spending.
  • Also, the marginal increase in percentage could be a factor of a shrinking economy GDP growth was slow in FY 2020.
  • This percentage is likely to go up further next year because the economy tanked as a result of Covid-19.

5. The reason for steadily dropping out-of-pocket expenditure

  • If you look at the total spending on health (which includes health spending by the government, private players and individuals) it has been going down as a proportion of GDP from 3.9 per cent in FY 2015 to 3.3 per cent in FY 2020.
  • This means that there is a decline in the consumption of healthcare services. And, our work with NSSO data supports this as we saw a decline in hospitalisations and out-patient services.
  • The data might be hiding these facts, but the government's initiatives are on the right track to ensure that people's expenses on health go down.
  • Health and Wellness Centres ensuring preventive care and the Ayushman Bharat insurance scheme offering free treatment is the way to go, but the implementation has to be strengthened so the poor people can access care.
  • The out-of-pocket expenditure can also be reduced by improvement in the procurement of medicines that make up a significant proportion of health costs and improving services in the public sector hospitals too.

6. An increase in spending on insurance

  • Along with an increase in government spending, the report shows that there has been an increase in spending on privately purchased health insurance as well.
  • Privately purchased health insurance made up for only 3.9 per cent of the total health expenditure in FY 2015, which increased to 7.72 per cent in FY 2020.
  • The government-financed health insurance spending also went up from 3.8 per cent of the total money spent on healthcare in FY 2015 to 6.37 per cent in FY 2020 as per the report.

7. Health spending by states

  • The data from the detailed report could be meaningfully used by the states to design their policy and budget.
  • There was a need for the states to increase their contribution towards healthcare and achieve the target set by the National Health Policy 2017, which says that 8 per cent of states' budgets should go towards healthcare.
  • Only two big states and three of the smaller ones have crossed the 8 per cent target in FY 2020.
  • Delhi contributed 18.7 per cent of its total spending on health and Kerala 8 per cent, Puducherry 10.5 per cent, Meghalaya 8.9 per cent and Goa 8.7 per cent.
For Prelims: National Health Policy, National Health Account, Ayushman Bharat insurance scheme
For Mains:
1. Access to affordable, quality health care is still a dream for many people in India. Comment. (250 Words)

Previous Year Questions
 
1. With reference to the use of nanotechnology in the health sector, which of the following statements is/are correct? (UPSC 2015)
1. Targeted drug delivery is made possible by nanotechnology.
2. Nanotechnology can largely contribute to gene therapy.
Select the correct answer using the code given below.
A. 1 only     B. 2 only      C. Both 1 and 2      D. Neither 1 nor 2
 
Answer: C
 
2. Lead, ingested or inhaled, is a health hazard. After the addition of lead to petrol has been banned, what still are the sources of lead poisoning? (UPSC  2012)
1. Smelling units
2. Pens and pencils
3. Paints
4. Hair oils and cosmetics
Select the correct answer using the codes given below:
A. 1, 2 and 3 only     B. 1 and 3 only      C. 2 and 4 only     D. 1, 2, 3 and 4
 
Answer: B
 
Source: The Indian Express

WETLANDS 

 
 
1. What are Wetlands?
The Ramsar Convention on Wetlands defines wetlands as “areas of marsh, fen, peat land or water, whether natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water the depth of which at low tide does not exceed six meters”.
Wetlands are vital for human survival. They are among the world’s most productive environments; cradles of biological diversity that provide the water and productivity upon which countless species of plants and animals depend for survival.
The Ramsar Convention, which came into existence in 1971, is an intergovernmental treaty that provides the framework for national action and international cooperation for the conservation and wise use of wetlands and their resources
2. Newly added Wetlands
The five new wetlands added to the list are the Karikili Bird Sanctuary, Pallikaranai Marsh Reserve Forest, Pichavaram Mangrove, Sakhya Sagar, and Pala Wetland.
Wetland State Description
Karikili Bird Sanctuary Tamil Nadu The Karikili Bird Sanctuary comprises two rain-fed non-perennial irrigation tanks spreading over more than 58 hectares. The Site is gently undulating and lies near low ridged, rocky hillocks. The near-threatened oriental darter (Anhinga melanogaster) and spot-billed pelican (Pelecanus philippensis) breed here. The Site was declared a Birds Sanctuary in 1972.
Sakhya Sagar Madhya Pradesh Sakhya Sagar is a human-made reservoir on the outskirts of Shivpuri town within the Madhav National Park. The Site features a mosaic of landforms including open water and surrounding marshes, plantations, and a small patch of agricultural land. This wetland provides a permanent source of water for wildlife, and habitats for animals including thousands of migratory waterfowl and also mugger crocodiles (Crocodylus palustris), whose presence attracts tourists.
Pichavaram Mangrove Tamil Nadu The Pichavaram Mangrove Forest near Chidambaram is the world’s second-largest mangrove forest. It is located between two prominent estuaries, the Vellar Estuary in the north and the Coleroon Estuary in the south. The Vellar-Coleroon estuarine complex forms the Killai backwater and Pichavaram mangroves. The backwaters are interconnected by the Vellar and Coleroon river systems and offer abundant scope for water sports such as rowing, kayaking, and canoeing. 
Pala Wetland Mizoram The geographical location of Palak Dil/Pala Wetland falls under the Indo-Burma biodiversity hotspot and is therefore rich in animal and plant species. The lake is a major component of the Palak Wildlife Sanctuary and supports the sanctuary’s major biodiversity. The wetland falls under the Phura Forests Range. 
Pallikaranai Marsh Reserve Forest Tamil Nadu This freshwater marsh and partly saline wetland support some bird species, mammals, reptiles, amphibians, fish, and butterfly species. These include notable species such as Russell’s viper (Daboia siamensis) and birds such as the glossy ibis (Plegadis falcinellus), grey-headed lapwings (Vanellus cinereus), and Pheasant-tailed jacana (Hydrophasianus chirurgus).

 

3. Ramsar Convention

  • The Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat is an international treaty for the conservation and sustainable use of Ramsar sites. It is also known as the Convention on Wetlands. It is named after the city of Ramsar in Iran, where the convention was signed in 1971
  • The Convention’s mission is “the conservation and wise use of all wetlands through local and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world”
  • Wetlands are among the most diverse and productive ecosystems. They provide essential services and supply all our fresh water. However they continue to be degraded and converted to other uses
  • The Convention uses a broad definition of wetlands. It includes all lakes and rivers, underground aquifers, swamps and marshes, wet grasslands, peatlands, oases, estuaries, deltas and tidal flats, mangroves and other coastal areas, coral reefs, and all human-made sites such as fish ponds, rice paddies, reservoirs and salt pans

Under the “three pillars” of the Convention, the Contracting Parties commit to:

  • work towards the wise use of all their wetlands;
  • designate suitable wetlands for the list of Wetlands of International Importance (the “Ramsar List”) and ensure their effective management;
  • cooperate internationally on transboundary wetlands, shared wetland systems and shared species.
 
 
For Prelims: Wetlands, Ramsar Convention, List of Wetlands
For Mains:1. Explain the major threats to Wetlands in India. Discuss the Important steps to be taken in order to eliminate those threats (250 Words)
 
Previous Year Questions:
1. Consider the following Questions: (UPSC 2019)
1. Under Ramsar Convention, it is mandatory on  the part of the Government of India to protect and conserve all the wetlands in the territory of India
2. The Wetlands (Conservation and Management) Rules, 2010 were framed by the Government of India based in the recommendation of Ramsar Convention
3. The Wetlands (Conservation and Management) Rules, 2010 also encompasses the drainage area or catchment regions of the wetlands as determined by the authority
Which of the Statements given above is/ are correct
A. 1 and 2
B. 2 and 3
C. 3 Only
D. 1, 2, 3
Answert (C)
1.What is wetland? Explain the Ramsar concept of ‘wise use’ in the context of wetland conservation. Cite two examples of Ramsar sites from India. (150 words, 10 marks) (UPSC Mains-2018)
 
 
Source: indianexpress

WOMEN RESERVATION BILL

 

1. Context

Even though women have been breaking the glass ceiling of patriarchy in every sector, politics is the arena where women find it the most challenging to find space. India may have achieved suffrage early, but women still face significant barriers to political participation and do not have the right to govern. It is disheartening to witness that even 75 years after Independence, Parliament lacks substantial representation from half the population, with women holding just 14% of the seats. 

2. Crucial Role of Women in Indian Independence

  • Women played a crucial role in India's fight for independence, by organizing demonstrations, leading rallies, and raising awareness.
  • There were numerous female representatives in the Constituent Assembly as well. Just a decade ago, three of India's largest states, West Bengal, Tamil Nadu, and Uttar Pradesh, were in the spotlight for being led by Women Chief Ministers.
  • While Sushma Swaraj led the Opposition in the Lok Sabha, Sonia Gandhi served as both President of the Congress party and Chairperson of the United Progressive Alliance.
  • Also, India had its first woman president, Prathibha Patil around the same time.
  • Despite the presence of influential women in Indian Politics, we have regressed since the 1980s, and the patriarchal backlash has resulted in the status of women in India being far from ideal.
  • Hence it will not be wrong to infer that the issue of political representation of women is a greater case, as opposed to having token representation.

3. Women's reservation status in India

  • The discourse on women's reservation in India originates from the Pre-independence era when several women's organizations demanded political representation for women.
  • It can be traced back to 1955 when a government-appointed committee recommended that 10% of seats in the Lok Sabha and state legislative assemblies should be reserved for women.
  • However, it was not until the 1980s that the demand for women's reservations gained momentum.
  • The National Perspective Plan for Women (1988) recommended that 30% of seats in all elected bodies should be reserved for women.
  • This recommendation was reiterated in the National Policy for the Empowerment of Women, which was adopted in 2001.

4. Women's Reservation in Local Bodies

  • In 1993, the Panchayat Raj Act was amended to reserve 33% of all seats in local government bodies for women, which was a significant step towards women's political empowerment.
  • The success of this reservation led to demands for similar reservations in other elected bodies; in 1996, the Women's Reservation Bill was introduced in the Lok Sabha.
  • The Bill proposed to reserve one-third of seats in the Lok Sabha and state legislative Assemblies for Women.
  • However, facing strong opposition from some political parties it lapsed but gained more momentum again in the early 2000s. 
  • On March 9, 2010, the Bill was approved in the Rajya Sabha. Sonia Gandhi, Sushma Swaraj, and Brinda Karat of the CPI(M) posed for photographs outside Parliament, smiling and holding hands, indicating that this was a fight much bigger than individual political affiliations.

5. History of Women's Reservation Bill

  • The Women's Reservation Bill was first introduced in 1996, however, it did not get approval in Lok Sabha.
  • Women's Reservation Bill was then referred to a Joint Parliamentary Committee chaired by Geeta Mukherjee, which presented its report in December 1996. However, the Bill lapsed with the dissolution of the Lok Sabha and had to be reintroduced.
  • It was then introduced in 1998, 1999, twice in 2003, and 2008 but it failed to get support and lapsed every time.
  • The Bill, then reached the Lok Sabha, after passing in the Rajya Sabha in 2010, where it never saw the light of day. When the House was dissolved in 2014, it lapsed once again.

6. Issues with the Women's Reservation Bill

  • Women Reservation Bill opponents claim that due to the reservation, women would not be seen as competitors based on merit, this would perpetuate their inferior status.
  • Additionally, they argue that this strategy serves to deflect attention from the more important aspects of electoral reform, such as the criminalization of politics and internal party democracy.
  • Parliamentary seat reservations limit voters' options to female candidates. Therefore, some experts have suggested alternate methods such as reservation in political parties and dual-member constituencies.

7. Current Status of Women in Parliament

  • India’s ranking: India ranks 144 out of 193 countries in the representation of women in Parliament, according to the Inter-Parliamentary Union’s latest report.
  • Lok Sabha & Rajya Sabha: Currently, just 14% of Lok Sabha MPs are women (78 in total). Women make up roughly 11% of the Rajya Sabha. 
  • Slow progress: While the number has increased significantly since the first Lok Sabha, where women made about 5% of the total MPs, it is still far lower than in many countries.
  • Global comparison: According to data from PRS, Rwanda (61%), South Africa (43%), and even Bangladesh (21%) are ahead of India in this matter. 

8. Global examples

  • Around the world, women leaders are outperforming their male counterparts.
  • The Scandinavian countries have implemented policies and governance structures that support gender equality and women’s empowerment, which includes women’s representation in political and leadership positions.
  • Moreover, countries led by women have shown to have some of the best policies and governance practices.
  • The deep scars in Rwanda, a central African nation, from the genocide, are being healed by predominantly a leadership that comprises women; this has also resulted in key social reforms. 
  • Norway implemented a quota system in 2003 that required 40% of seats on corporate boards to be occupied by women.
  • Now, it is time for the women in India, the ‘mother of democracy’, to lead the nation.
For Prelims:  Constituent Assembly, United Progressive Alliance, Pre-independence era, Lok Sabha, National Perspective Plan for Women (1988), National Policy for the Empowerment of Women, Joint Parliamentary Committee, and Democracy.
For Mains: 1. Do you think women's reservation in the Indian parliament would have a significant impact on Gender equality in India? (250 Words)
 
Previous year Question
 
1. Consider the following statements : (UPSC 2021)
1. The Montagu-Chelmsford Reforms of 1919 recommended granting voting rights to all women above the age of 21.
2. The Government of India Act of 1935 gave women reserved seats in the legislature.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
 Source: The Hindu

GREEN ENERGY OPEN ACCESS

 
 
1.Context
Ministry of Power has notified Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 to further accelerate our ambitious renewable energy programmes, to ensure access to affordable, reliable, sustainable and green energy for all. 
 
2. Key Takeaways
The salient features and benefits to common consumers from ‘Green Energy Open Access’ are as follows:
  •  These rules are notified for promoting the generation, purchase and consumption of green energy including the energy from Waste-to-Energy plants.
  •  Green Open Access is allowed to any consumer and the limit of Open Access Transaction has been reduced from 1 MW to 100 kW for green energy, enabling small consumers to purchase renewable power through open access. 
  •  Consumers are entitled to demand supply of Green Power from Discoms. The Discoms would be obligated to procure and supply green power to eligible consumers.
  •  Time-bound processing by bringing uniformity and transparency in the application and approval of open access through a national portal has been mandated.
  •  Approval for Green Open Access is to be granted in 15 days or else it will be deemed to have been granted.
  •  Commercial and Industrial consumers are allowed to purchase green power on a voluntary basis. 
  •  There shall be a uniform Renewable Purchase Obligation (RPO), on all obligated entities in the area of a distribution licensee. Green Hydrogen/Green Ammonia has also been included to fulfil its RPO. 
  •  Consumers will be given Green Certificates if they consume green power.
 
3. Way Forward
As per the Electricity Act 2003, the tariff is determined by the Appropriate Commission. Accordingly, the tariff for the green energy shall be determined by Appropriate Commission and shall comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges, if any, and service charges covering the prudent cost of the distribution licensee for providing green energy to the consumers
Ministry of Power vide notification dated 08th July, 2022 notified Power System Operation Corporation (POSOCO) as Central Nodal Agency to set up and operate a single window green energy open access system for renewable energy under these Rules.  National Portal will serve the consumers from all over the country
 
 
Source: pib

CHINA AS PEACEMAKER IN MIDDLE EAST

 

1. Context

China has been upping its diplomatic charm offensive in the Middle East in recent weeks, framing itself as a peacemaker between longstanding rivals in the region. After brokering a landmark deal, helping Iran and Saudi Arabia to re-establish diplomatic ties on April 6, 2023 Beijing is now trying to facilitate peace talks between Israelis and Palestinians.

2. China’s focus on ‘acquiring resources and markets

  • Beijing views longstanding disputes between different countries as “destabilizing” and potentially risky to its long-term business interests.
  • China’s most important interests in the Middle East are acquiring resources and markets, which include economic and political interests.
  • China has an incentive to resolve these disputes, as it can benefit from stability in the region.
  • Additionally, serving as a mediator allows China to demonstrate that it’s a great power that wants to contribute to peace and stability in the Middle East.
  • Before the groundbreaking deal between Iran and Saudi Arabia, China has long been a top trading partner for countries in the Middle East, purchasing oil and investing more than $273 billion (€250 billion) in the region between 2005 and 2022.
  • The Belt and Road initiative, China’s flagship global infrastructure project that started in 2013, has also allowed Beijing to expand its influence across the region.

3. What is New Saudi-Iran Deal?

  • Iran and Saudi Arabia, two of the largest oil-producing states in the Middle East have agreed to restore ties and reopen embassies which have been closed since relations between the two broke down in 2016 following the execution of a Shia cleric by Saudi Arabia.
  • The agreement was negotiated by China and signed in Beijing after a series of secret negotiations.
  • The agreement could potentially lead to peace in Yemen where the two countries had been waging a proxy war and also affect the Iran nuclear deal.
  • The deal has been welcomed by the United Nations, France, Jordan, and other West Asian countries but Chinese involvement and concerns over whether it could be counter to the USA -Led Abraham accords have worried Israel, the UAE, and the USA.
  • The successful agreement would boost China’s efforts to project itself as a peacemaker as previous efforts by Oman and Iraq to reach a solution had failed.
  • The trilateral statement issued by the three countries following the agreement affirmed their respect for the sovereignty of states and non-interference in the internal affairs of other countries.

4. How is it beneficial to China?

  • In contrast, China has enjoyed warmer ties with Saudi Arabia and Iran.
  • In December 2022, China and Saudi Arabia signed more than twelve agreements related to energy and infrastructure.
  • Tehran and Beijing have also coordinated on the Belt and Road Initiative with talks being held on a 25-year MoU on oil and infrastructure projects worth around $400 billion.
  • China has stated that it would continue to play a constructive role in handling hotspot issues across the world and demonstrate its responsibility as a major nation.

5. India's Response to this Deal

  • India has not officially released any announcement in reaction to the agreement but experts have expressed concern about Beijing’s potential influence on two of India’s largest partners in the region, given the tensions between India and China.
  • While the normalization of ties between Saudi Arabia and Iran was good news for India, China’s role was a concern but this also provided India with an opportunity to rework its priorities and focus on regional developments in the Middle East.
  • Some experts have claimed that India’s recent focus on the I2U2 quadrilateral involving Israel, the USA, and UAE might have shifted the focus away from Iran and Saudi Arabia.
  • A visit to India by the Saudi Arabian crown prince Mohammad Bin Salman was postponed in 2022 while the Iranian prime minister’s visit as part of the Raisina Dialogue 2023 was also canceled.
  • India will also pay close attention to China’s response to the success of the deal and whether China will extend its peacemaker role to other global conflicts.

6. Can China challenge US dominance in the Middle East?

  • As China looks to grow its influence in the Middle East, the international community is also closely following how it might challenge a regional order that has long been dominated by the United States.
  • Murphy from the US War College told DW that China puts emphasis on its ability to maintain balanced relations with every country in the Middle East and that there are no signs that Beijing would start picking sides amid its ongoing attempt to present itself as a “peacemaker.”
  • Even though some US policymakers view China’s growing influence in the Middle East with concern, Gering from INSS thinks top US officials like Secretary of State Antony Blinken view Beijing’s attempt to be a mediator in regional conflicts as a positive change.
For Prelims: Middle East, Iran, Saudi Arabia, Israelis, Palestinians, diplomatic ties, Belt and Road initiative, Iran nuclear deal, USA -Led Abraham accords, I2U2, and Raisina Dialogue.
For Mains: 1. Discuss the Role of India in Saudi-Iran Relations and the Effect of Policies & Politics of Countries on India's Interests. (250 Words)
 Source: The Indian Express

LOGISTICS PERFORMANCE INDEX

1. Context 

India improves in the logistics ranking of the World Bank by jumping 6 places to Rank 38 out of 139 countries in the 7th edition of the Logistics Performance Index (LPI 2023). India has been taking numerous initiatives since 2015 to improve its logistics efficiency.

2. Key points

  • The World Bank has acknowledged India's efforts towards increasing logistics efficiency.
  • On 4 out of 6 LPI indicators, India has seen remarkable improvement on the back of various initiatives being implemented over the past few years.
  • This is a strong indicator of India's global positioning with this development being powered by our Government's laser focus on reforms for improving logistics infrastructure.

3. PM GatiShakti 

  • In October 2021, the Government of India launched the PM GatiShakti National Master Plan (PMGS-NMP) towards a coordinated approach, leveraging technology, for infrastructure planning and development.
  • PMGS envisages breaking silos among different Departments/ Ministries in States/UTs by combining all relevant data on a National Master Plan and State Master Plans (Portals) respectively.
  • It is a GIS-based tool which integrates existing and proposed infrastructure initiatives of different Central and State agencies promoting a collaborative approach.
  • Through the power of technology and collaborative efforts of concerned agencies put together, PM GatiShakti addresses the emerging need of transforming the logistics landscape due to factors like rapid urbanization, changing energy choices, e-commerce, the need to develop resilient supply chains etc.

4. National Logistics Policy

  • In September 2022, the Prime Minister launched the National Logistics Policy (NLP) which acts as a guiding document for States/UTs seeking to formulate logistics policy (19 States/UTs have notified their logistics policy).
  • The policy is centred around the upgradation and digitisation of logistics infrastructure & services.
  • Further with a focus on bringing efficiency in services (processes, digital systems, regulatory framework) and human resources, the policy puts marked emphasis on streamlining processes for seamless coordination and reduction in overall logistics cost, besides incentivizing employment generation and skilling of the workforce.
  • NLP emphasizes the shift towards more energy-efficient modes of transportation and greener fuels to reduce the carbon footprint. 
  • The policy also focuses on adopting the usage of multimodal transportation and complementing it by building multimodal logistics parks.
  • Further, it emphasized the importance of targeted policy reforms to improve the time spent by cargo at ports, airports and multimodal facilities since most of the delays occur at these locations.

5.  Logistics Data Bank project

  • The Government of India also invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic zones in the hinterland.
  • Technology has been a critical component of this effort, with implementation under a public-private partnership of a supply chain visibility platform, which has contributed to remarkable reductions in delays.
  • NICDC's Logistics Data Bank project applies radio frequency identification (RFID) tags to containers and offers consignees end-to-end tracking of their supply chain.
  • Its implementation started in 2016 in the Western part of India and was scaled up to the Pan India level in 2020.
  • With such initiatives of transparency, visibility and ease of doing business, there has been significant improvement in cross-border trade facilitation.
  • Also, the Logistics Data Bank project promotes healthy competition amongst the ports as it provides information on performance benchmarking, congestion, dwell time, speed and transit time analysis.
  • Over a period, it has also become a repository of data and information relating to the logistics industry and the same is shared with the stakeholders through monthly, quarterly and annual reports appreciates the Logistics Data Bank which reduces inefficiencies while connecting the hinterland to ports.

6.  LEADS Study

  • At a sub-national level, the Department for Promotion of Industry and Internal Trade (DPIIT) has been conducting LEADS (Logistics Ease Across Different States) study since 2018 which helps to identify and resolve logistics inefficiencies and improve trade facilitation across supply chains.
  • On a national level, India has notified Productivity Linked Incentive (PLI) Scheme for a boost to creating global champions in manufacturing, PM Mitra Textile Parks, Bulk Drug Parks, other areas of manufacturing and 43 Towns of Export Excellence meticulously focusing on Specific sectors for exports and provisions of related infrastructure.
  • Resolving the logistics gaps/bottlenecks will help decrease the logistics cost and will lead to an increment in logistics efficiency which will contribute to ongoing reforms aimed at India becoming a global manufacturing/production hub in the coming years.
  • Further other initiatives like Sagarmala which aims to improve connectivity to ports and reduce cargo dwell time and Bharatmala which focuses on improving road connectivity of major corridors have played a pivotal role in improving India's logistics efficiency.
  • The LPI index is a perception-based survey conducted across select stakeholders dealing with respective countries.
For Prelims: Logistics performance index, LEADS Study, World Bank, PM GatiShakti,  Logistics Data Bank project, 
For Mains: 
1. What is Logistics Performance Index? Discuss the aspects that led to India's Improved Logistics Performance. (250 Words)
 
Previous Year Questions
 
For Prelims:
1. Prime Minister Narendra Modi launched PM Gati Shakti - National Master Plan for Multi-modal Connectivity. What is the proposed financial outlay for the scheme? (RRB NTPC 2022 ) 
A. 50 lakh crores
B. 2500 lakh crores

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