18 Jan 2023

#GS2: – 01. China’s population dip

For an economy already caught in a slowdown, China’s population data made it a double whammy. The official headcount fell for the second straight year in 2023. The decline of 2.08 million, though small for a country of mor ethan1.4 billion, was twice the fall in 2022, its first in six decades.Notably, the number of those aged 16-59 dropped by 10.75 million,while those above 60 increased by 16.93 million.

China now faces an adverse demographic turn, with fewer people who can contribute to economic activity even as an elderly bulge adds to its welfare burden.Beijing abandoned its misguided one-child policy only in 2016, having found that prosperity tends to spell smaller families anyway. Its efforts since then to get people to have more children will take time to work. While China’s economy grew 5.2% in 2023, it was among its worst performances in over three decades.
– Commentary in News
Key Terms/Issues : One child policy

#GS3 – 02. BOT Model
The government is committed to reviving BOT (build operate transfer) model in the highways sector and making it investment-friendly and attractive for private partnerships.

This will not only strengthen the road infrastructure but will have a ripple effect that will help to strengthen the economy,increase the employment potential and reduce the logistic cost.
– MoRTH Nitin Gadkari
Key Terms/Issues : BOT, PPP

#GS2 03. Inclusive Growth

Most economies are growing in ways that are neither sustainable nor inclusive and are limited in their ability to absorb o rgenerate innovation and minimize their contribution and susceptibility to global shocks.

A new approach to economic growth that balances efficiency with long-term sustainability and equity is required.
-WEF’s The Future of Growth Report

#GS3 – 04. Wind Energy
Government’s broader strategy for offshore wind projects, to be developed under three models.The first involves VGF for two 0.5GW sites off the coasts of Gujarat and Tamil Nadu.The other models propose bidding processes for sites exclusivity during the survey periods, with or without seabed rights.

Offshore wind offers higher quality wind and more efficient energy conversion due to the absence of physical obstructions at sea. The Centre had notified the‘National Offshore Wind Energy Policy’ in October 2015, but projects failed to take off due to the high investments needed and lack of economic viability.

Given that offshore wind farms need to be set upon the sea bed,the technology and infrastructure involved are more complex, resulting in higher gestation periods.
-Commentary in News
Key Terms/Issues : Viability Gap Funding (VGF)

#GS2 – 05. India’s Growth & Inflation

At this stage,our expectation is that the CPI inflation will average around 4.5% in FY25. As regards growth, my sense is that the GDP growth in India will touch 7% in FY25.

I am saying this on the basis of strong momentum of economic activity seen in India. Consequently,growth would be 7% and above for four consecutive years starting from FY 2021-22.
As per RBI’s forecast, India is expected to clock in a growth of 7% and consumer price inflation of 5.4% this fiscal year.
-RBI Governor Shanktikanta Das

#GS3 –06. Fertilizer Subsidy

The government’s fertilizer subsidy bill in FY24 is expected to fall 20-24% from the year before to ₹1.7-1.8 trillion because of lower international prices and smaller urea imports.

The RedSea crisis will not have an impact on Indian trade, including fertilizer imports as the government is intervening and the Indian Navy is providing security to get vessels in the country safely. Indian fertilizer cargoes are now coming via the Cape of Good Hope that has raised freight costs significantly. There will be no shortage of fertilizers next Kharif season as we reserve stocks for one season in advance to avoid shortage.
-Chemicals and Fertilizer minister Mansukh Mandaviya
Key Terms/Issues : Red Sea crisis, Kharif

#GS4 –07. Independent Directors
Indian firms are struggling to find independent directors for their boards. More than 1,400 independent directors are set to retire by 1April. The Companies Act, 2013, stipulates that firms cannot have directors on their boards for longer than 10 years.

Indian businesses are not isolated anymore and global crises like wars are impacting supply chains. Companies need experts who can offer strategies and guidance against these events which is a rare skill-set.

Companies are seeking independent directors with niche talent in digital and consumer behaviour, among others. Cybersecurity risk and incorporating AI being top issues organizations are expected to face in the new year, many recognize the need to identify board members wh opossess the skill-sets and capabilities relevant in navigating these new challenges.
-Commentary in News

Key Terms/Issues :