29 Dec 2023

#GS3: – 01.Ease of Doing Business for Retail

India’s offline retail market was estimated at $860 billion in 2022; it is expected to nearly double by the end of the current decade. Online retail, on the other hand, is a $70-billion market and is expected to grow at a rapid pace, according to a 2023. Retail policies in developed markets aimed at helping both large and unorganized retailers. For instance,in2016, Singapore rolled out a retail plan to help small retailers digitize their businesses and help SMEs acquire necessary skills. Singapore has also launched Hawkers Go Digital programme to enable greater adoption of digital payments by hawkers and stall owners. Applying for permits to operate a supermarket takes five working days in Singapore
compared to 60-90 days in India. – Deloitte

#GS3: –  02. Ethanol & Molasses

India is the world’s largest molasses exporter, contributing about 25% to global trade. The country doesn’t currently levy an export duty on molasses, a by-product of the process of refining sugarcane into sugar, and a key ingredient in the production of ethanol, a biofuel. The efforts to boost domestic availability of molasses for ethanol production follow recent curbs on sugar exports and directions to mills to cease using cane juice for the bio-fuel,which was reversed later. An expected shortage in sugar supplies for domestic consumption has already spiked the prices of the sweetener to a 14-year high. To achieve the 20% blending target, it is crucial to utilise all C-heavy molasses for ethanol production,the industry
body added, proposing “substantial customs duties or…a complete ban”. C-heavy molasses is the last by-product of the sugar refining process, and has no sugar content left in it,unlike Btype and sugarcane juice.
–Commentary in News

#GS2: – 03. The Red Sea

The Red Sea is the entry point for ships using the Suez Canal, which handles about 12% of worldwide trade and is
vital for the movement of goods between Asia and Europe. Houthi attacks have seen some ships rerouted around
Africa’s Cape of Good Hope, substantially increasing sailing time and costs.
-Commentary in news

#GS2: –  04. Global Political Faultlines

The war in Gaza is today’s leading political faultline. There is a grave risk that the involvement of Iran’s allies, especially the disruption of Red Sea flows of oil and other commodities,could lead to a widening conflict with significant global economic consequences. In particular, the prices of oil and gas could spike and the world could be hit by another hydrocarbon price shock. The second major fault-line is the war in Ukraine and the Nato-Russia confrontation. Markets have long factored in supply disruptions experienced during the first year of this war. Hostilities have since ground to a stalemate.If the war ended and sanctions against Russia were lifted, there would be some re-direction of oil and other commodity flows, growth could recover in Russia, and Ukraine would be launched on a path to restoration and recovery. The net impact on global growth and inflation would be beneficial but modest. The third major fault-line is the US-China rivalry for global hegemony.The wide-ranging Deng-era reforms led to China’s unprecedented double-digit growth for over two decades,making it the world’s second largest economy. Slowing growth in China will continue to have a moderating effect on global growth.
–Sudipto Mundle, Chairman, Centrefor DevelopmentStudies

#GS2: –  05. Influence of Cash Transfers in Elections

Recent state elections show how cash transfers have gained popularity. Political parties find them easy to use while
voters get tangible benefits right away, which keeps everyone happy.In the long-run,they may do more harm than
good by hogging funds that could’ve been better used.While redistribution is a crucial objective, cash transfers might
not be the best solution.
-JNU Professor Himanshu

#GS3: – 06. AI & India

We have grown so used to AI working behind the scenes to improve our web experience that we don’t even sense it but the next wave will take us from auto-pilot to co-pilot mode. The opportunity AI presents in various facets of life and work is huge. India needs to adopt it strategically and also take a lead in AI regulation so that it serves economic ends at minimal risk. Earlier this year, the global population moved past 8 billion people. Today, one out of every six people on earth lives in India.AI presents a tremendous opportunity for India to drive innovation at billion-scale,setting us on the path of inclusive growth. In a world of increasing economic complexity, AI has the power to unlock immense possibilities and solve some of the toughest problems India faces in areas like healthcare, education, climate change, financial inclusion, cybersecurity and more. From enabling faster detection of diseases and driving cutting-edge innovations in manufacturing to enabling financial inclusion for the underbanked, AI will take technology to every Indian’s doorstep.A research study suggests that AI has the potential to add $957 billion to the Indian economy by 2035

–Microsoft India President Puneet Chandok