6 Feb 2024

#GS3 –01. Deep Tech Fund

Deep-tech includes sectors that are heavily driven by engineering,research and development, and innovation. This niche area covers technologies that are yet to go mainstream. Innovation of this nature requires sizeable funds, as deep-tech has along development phase before hitting the markets. The technologies are also of national significance, because of which developed economies invest heavily in order to not be reliant on other nations. While venture capital investments are important,the massive amounts needed make government funding key to developing foundational and fundamental deep-tech industries.

Semiconductors, artificial intelligence,quantum computing, and high-tech manufacturing. Globally,other sectors that get Clubbed under deep-tech include aviation, climate-tech, mobility,biotics and space. India’s startup economy is the target for this fund,since domestic VCs largely offer early-stage funding that is made available in small ticket sizes.

The ₹1 trillion ($12 billion) corpus is significant,but not the largest globally.In November,the European Innovation Council said in the past year it offered €1billion (around ₹9,000 crore) to deep-tech ventures. The US is ahead—even without a deep-tech fund. Goldman Sachs pegs R&D spending on frontier technologies at over $120 billion annually as of 2019.Data from China’s finance ministry shows funding of a massive $ 273 billion in 2022 alone for deep-tech ventures.
– Commentary in News

#GS4 — 02. India’s Policy Tenets

Our external and internal policy is clear. We want friendly relations with other countries. But there will be no compromise on the country’s border security and the security of its people.
-HM Amit Shah

#GS3 –03. Need for large banks in India

India needs more banks the size of State Bank of India (SBI), or larger. “We need more SBI- sized banks. May be three times the size of SBI. Because SBI is also not in the top10 (globally).
– FM Nirmala Sitharaman

#GS1 — 04. Coaching

Coaching centres must adhere to fair fees,avoid false promises, and ensure the mental well-being and safety of students, according to the ministry guidelines. $225 billion is the estimated size of the education sector by 2024-25, a near-doubling in five years, according to India Brand Equity Foundation. This is set to feed the coaching industry as well.The market size of India’s coaching classes market is set to reach ₹1.34 trillion by 2028, up 2.3 times in seven years.
–Commentary in News

#GS3 — 05. State Funds and reforms

Of the ₹1.3 trillion earmarked for the ‘special assistance to states for capital investment’ scheme in the interim budget 2024-25,about ₹75,000 crore, or 58%,will be linked to outcomes and reforms carried out by the States.

For availing the ₹55,000 crore interest-free loan, it (the infrastructure project) should be incremental; don’t use this to substitute your capital expenditure, make it over and above your last year’s overall capital expenditure.
–Unionfinancesecretary T.V. Somanathan

#GS3 –06. India Energy Week

India Energy Week 2024,which will see participation from 120 countries, is expected to delve into various themes, including energy transition,the development of a future-ready energy stack, and exploration of alternative fuels,a mid India’s own quest for energy security and sustainable growth.

India is looking at increasing oil and gas exploration in the country in a bid to raise domestic hydrocarbon production and reduce import dependence. About 85% of India’s energy requirement is met through imports.