23 Jan 2023

#GS3 01. SROs for Fintech

India has the largest fintech ecosystem in terms of the number of entities. India’s fintech market is projected to hit $150 billion by 2025, a big leap from $50 billion in 2021. This projection indicates that by 2030, the sector could potentially contribute to approximately 13% of the global fintech industry’s total revenue, the RBI believes.
The Reserve Bank of India (RBI) has published a draft framework thatlays down the broad functions, governance standards and eligibility criteria for setting up a self-regulatory organization (SRO) for fintech companies.
– Commentary in News
Key Terms/Issues : Fintech, SROs

#GS3 – 02. Toll Revenue

The Atal Setu or Mumbai Trans Harbour Link, connecting Mumbai to Navi Mumbai,was inaugurated. For a 22- kilometre journey, users will be charged a toll of ₹250 one way.The concept of pay-and-ride on Indian roads has been on the rise.The bulk of India’s road toll revenues come from national highways, rising from ₹17,759 crore in 2015-16 to ₹48,028 crore in 2022-23. The government is targeting revenues of ₹1.3 trillion by 2030—an average annual growth of 15%.

Since 2013-14,the total length o national highways has risen around 1.5 times to145,000km. However, the last few years have seen the length of highways subject to tolls double.Further,the number of toll plazas on national highways has risen more than five-fold between 2014-15 and 2021-22. The current number of toll plazas is 959,according to the National Highways Authority of India (NHAI) website. Under the government’s National Monetization Pipeline(NMP) to monetize public assets, around ₹6 trillion of revenue was expected between 2021-22 and 2024-25. Of this,the roads sector is expected to be the biggest contributor, at 27%,according to NITI Aayog.

Thus, the average toll revenue per plaza has declined from₹116 crore in 2015-16 to ₹46 crore in 2021-22. Seen another way, the average revenue per tolled kilometre has declined from ₹94 lakh to ₹88 lakh over this period.
– Commentary in News
Key Terms/Issues : Atal Setu or Mumbai Trans Harbour Link, National Monetization Pipeline(NMP)

#GS2–#GS4 03. Coaching Age Limit

A coaching centre should not accept students younger than 16 years of age, or the student enrolment should be only after secondary school (standard 10) examination.
-Guidelines for Registration and Regulation of Coaching Centre 2024

Immediate legal advice sought to explore options and take necessary steps to halt the implementation of proposed guidelines. There was consensus to seek relaxation in regulations regarding coaching for students below 16 years, emphasizing the potential stress on those preparing for highly competitive exams.

We would want to appeal to the government to reduce the 16-year age barrier to 12 years.
-Coaching Federation of India Director Ashish Gambhir
Key Terms/Issues : Western Disturbances, El Nino

#GS1 04. Temple Economics

22nd January 2024 is not a mere date, it’s the origin of a new kal chakra (era)…We have to expand our consciousness From dev to desh, Ram to rashtra—from deity to nation.
-PM Modi

Ayodhya is “India’s response to the Vatican City andMecca”. The development of the Ram temple to result in an estimated 50-100 million footfalls in the city every year. Comparatively, Vatican City and Mecca attract about 9 million and 20 million annual footfalls, respectively.
A $10-billion makeover (new airport, revamped railway station, township, improved road connectivity etc.) will likely drive a multiplier effect with new hotels & other economic activities. It can also set a template for infra-driven growth for tourism.

Tourism contributed $194 billion to India’s 2018-19 GDP.
-Report by Jefferies

The newly built Ram temple, along with other initiatives by the Uttar Pradesh government, could result in additional tax revenue of ₹25,000 crore per annum for the state due to increased visitors.
–SBI Research Paper
Key Terms/Issues : Ram to Rashtra

#GS3 –05. Impact of macroeconomic policies of developed world

Emerging-market authorities must take action to protect their economies against spillovers from “populist and extreme” macroeconomic policies in the industrialized world. This means building buffers like foreign-exchange reserves when they can, and maintaining more macroeconomic discipline.

In an ideal world,the industrialized countries—with relatively stable politics and strong institutions—would maintain disciplined monetary policy ,recognizing that emerging markets have more volatile politics and less credible institutions. But in recent years, politics in industrialized countries has become increasingly fractured, driving more populist and extreme macroeconomic responses.
-Former RBI Governor Raghuram Rajan.

#GS3 –06. Sustainability Issues

Companies would have to integrate sustainability with their corporate strategy. You’ve got economic uncertainty, you’ve got inflation depending on the market that you operate in.You’ve got supply chain challenges, geopolitical issues; sustainability is having to be tackled in the construct of all of that. It is a long-term problem,requiring long-term solutions, and companies have to meet short term metrics.

A study conducted by EY, 2023 Sustainable Value Study had in November shown a fall in the average reduction of green house gas (GHG) emissions to 20% from 30% reported in 2022.