Economics an addiction( Dr. Vibhas jha)

Ans26.) An important challenge faced by Indian economy has been the slow rate of growth in private investments. It reached 26% of gdp in 2012, but declined thereafter and it is now 20% of gdp. The investment in manufacturing is even lesser because 9% of gdp is invested in construction sector. This restricts India's growth capacity. With capital output ratio of 5, India will need 40% investment to grow at 8% per annum which is the basic need for Viksit Bharat. The steps needed to promote it are - Better credit availability, specially for MSME. It will help in expanding investment. - Promotion of infrastructure by both central and state government. It will attract more private investors by reducing cost of production. - Promoting ease of doing business. It attracts investment by reducing cost of doing business. - Taking steps to promote demand by generating employment, which will attract investment. - Expansion of investment subsidy in particular sectors. Thus it is important for policy making to revive private investment because after 1991, India has done well in both gdp growth and employment generation when private investment has picked up

These are important notes from mains point of view.

Ans25.) Make in India was initiated as a flagship scheme to promote manufacturing in India in fiscal year 2015. It has several schemes supporting it like PLI, Semiconductor India mission, PM Mitra etc. The target initially was to increase manufacturing share of gdp in India to 25%, create 100 million new jobs in India in manufacturing, promote technology in manufacturing and development of training for workers in manufacturing. It has been successful in following ways - Increase in manufacturing of electronics goods, which has increased by 3 times in last 5 years. - In pharmaceutical ingredients manufacturing the import dependence has gone down by 18% after 2021. - Increased production of defence products from ₹45000 crore to ₹1.8 lakh crore between 2022-26. - Value addition in automobile industry has increased by 14% and in white goods by 12%. - Production of Vandebharat locomotive and rakes on a large scale - Increase in steel production from 95 million tonnes in 2018 to 146 million tonnes by 2026 - Increase in cement production from 400 Mt to 600 Mt in same time period. However there are challenges in the program as observed in - The share of manufacturing has not even reached 17% of gdp by 2026. - The share of manufacturing in workforce has gone down from 14% in 2016 to 11.7%. - Labor intensive sectors like textile, footwear, food processing have not seen the desired growth. - India's dependence on China in import of manufacturing has become higher in last 5 years. - Training of workforce on large scale has not yet happened - Restricted share of Indian firms in global value chains. Thus India will have to rejuvenate its policy of manufacturing by introducing structural reforms like input market reforms, infrastructure development, legal reforms etc. to assure that development is continuous and stable.

Ans 24.) Food processing is very important for India as it contributes 2% to India's gdp and employs 16% workers in unorganised sector. It also earns $20 billion in exports too. Govt has taken following steps to promote it - PM KISAN SAMPADA YOJANA - It has spent 12500 cr which has helped in creating 270 lakh million tonnes of processing and preservation capacity in last 10 years. Total investment attracted is more than 300 cr. -, PM Formalisation of micro food processing enterprises scheme - In last 6 years it has promoted vocal for local. It has a budget of ₹10000 crore. It plans to benefit 2 lakh enterprises through credit linked subsidy and adopting one district one product scheme. - Pli scheme for Fpi. It has a budget of ₹10900 crore. Till Feb 2026, 274 projects have been approved. It has met its target of more than 3 lakh job creation. The scheme focuses on promotion of manufacturing, encouraging innovation among fpi msme and support global branding. Thus govt is trying to promote not only Food processing production but also its global presence.

Ans22.) India experienced a significant energy threat with US Iran war this year. It was reflected in rising energy prices and threat of shortage of lpg, the main cooking fuel. The main threat to India's energy security are - 88% of India's crude oil, 50% of natural gas and 70% of lpg is imported. - 60% of crude, 70% of lng and 90% of lpg is imported through Strait of Hormuz. - Accelerated demand for energy with rising gdp growth - Lack of storage to sufficiently meet sudden exigency. - Poor exploration and extraction efforts within the country. Thus govt has tried certain steps to make India more energy secure. They are as follows - Increasing domestic refining capacity at a faster pace specially for lpg. - Developing strategic oil pool reserves at Visakhapatnam, Mangalore and Padur to meet sudden demand. - Promoting renewable energy, making it >50% of total electricity produced. - Promotion of nuclear energy with SHANTI act, allowing private participants and easier entry. - Development of green hydrogen with, SIGHT Program with a budget of ₹19750 crore - Development of coal gasification scheme with budget of ₹37500 crore - Promoting compressed bio gas plants from 3 to 34 in last 6 years under GOBARDHAN scheme. Thus there have been multiple steps from supply side to promote energy security but there has to be demand side impact like - using better machines which are more energy efficient -Staggered timings for offices and schools in urban regions to reduce congestion at particular time. - Keeping infrastructure better to avoid traffic jams -Promoting railways as main mode to carry bulk traffic like rest of the world where it carries 70% of bulk traffic compared to only 26% in India. - Promoting public transport - Development of transit oriented development. Thus it will help in reducing demand for fuel by rationalising it and making India a developed nation.

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Ans21.) In may 2026, cabinet approved scheme for promotion of surface coal/ lignite gasification project with a budget of ₹37500 crore. The target is to gasify 100 million tonnes of coal by 2030. It will help in reducing import of lng, urea, methane etc. The main features of the scheme are - Govt will provide subsidy to incentivise production of syngas and its downstream product. - Financial incentives will be maximum of 20% of cost of plant and machinery. - Selection of firms will be through electronic bidding -, The incentive will be given in 4,equal monthly installments linked to project milestones -, The subsidy will be over and above other govt schemes. Benefits - It is expected to mobilise investment worth ₹2.5-3 lakh crore - It will reduce price volatility in energy sector - It will create 75000 new jobs -, it is expected to generate ₹6300 crore and gst for the govt - It will keep Indian export of steel and cement out of CBAM restrictions. Therefore coal gasification can help in providing energy security with high economic returns.

Q26.) What are the steps needed to promote private investment in India? 150 words. Q27.) Examine the reasons for rupee depreciation. What steps have been taken to control it? 250 words. Q28.) What are the reasons for reduction in net fdi in India? Does it show falling investor's confidence in India? What steps can be taken to promote fdi?250 words Q29.) " Growth is a function of savings," do you agree? What other factors contribute to growth?150 words Q30.) Explain the steps taken by government to increase employment in India? 150 words.

Ans20.) Sagarmala scheme was initiated in 2015 with the objectives of improving port infrastructure, promoting port connectivity to industrial region, encouraging industrial development near ports and involving local population in Port development. It has a budget of ₹ 8 trillion and more than 450 projects to be developed. The main achievements are - It has increased port capacity from 1200mt to 2800mt and actual carriage has increased from 800 Mt to 1600 Mt. by 2026. - It has improved port infrastructure reflected in reduction of turn around time from 100 hours to 28 hours - It has made 13 internal national waterways operational, carrying more than 18 Mt of carriage. - It plans to develop six new major ports in at Tajpur, Outer Paradip, Enayam, Shirkadi, Bellekeri and Vadhavan. - It has improved industrial connectivity with multi modal connectivity development. Thus Sagarmala project has played a significant role in making external trade, specially exports growth more efficient.

Ans19.) Indian Railways is one of the oldest commercial organisation in India. It has been operated by Govt of India since 1900. It is the fourth largest rail network in the world and in terms of passengers it is the second largest rail network. After independence railway has served as the major transporter for both passenger and freight. Govt has taken steps to increase passenger capacity by 9 times and freight capacity by 11 times since independence. It has also converted 99.3% of routes now as electric routes. Govt has also increased capital expenditure on railway to above ₹2.5 trillion consistently for last 5 years. A railway safety fund has also been created to develop indegenously built anti collision device like Kavach. Govt has also intr electronic signaling on several routes. Bande Bharat trains and Tejas trains have operated at semi high speed and given lot of fast connectivity to Indian railway. Govt has listed railway public sector firms like IRCTC, IRFC and IRCONCOR, out of which the first two are now navratna companies. However even the there are economic fragility seen in Indian railway in following ways - Capacity creation is low compared to rise in demand leading to congestion and accidents - Punctuality of railway is still not efficient leading to loss of logistical growth - Only 26% of freight traffic is through railways due to very high freight charges, delayed transportation and open containers. - Use of diesel engine on certain routes - High operating ratio which is above 95%, leading to very less funds for development. - Multiple trains on same routes but operations are inefficient. -, intercity connectivity is still not fully effective - Last mile connectivity is lacking. Thus to improve the economic returns govt should -Rationalise both passenger and freight charges - Expand the network of high speed rails -Use lighter coaches for faster transportation - Promoting environmental footprints by reducing ghg emission. - Improving customer satisfaction by developing better amenities like bio toilet, E ticketing etc. - Accelerated investments in railway station and modernization of services. - Faster completion of high speed rail or bullet train project. - Opening certain routes to private sector by expanding Tejas and Bharat Gaurav trains Indian railway has the potential to be profitable and efficient but it will need reforms to assure that it can play its logical part in reducing logistical cost and improving industrial efficiency

Ans18.) VB G RAM G or Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Grameen has become operational from 1st July 2026, replacing MNREGA as the rural employment guarantee program in India. It has following advantages ovwr MNREGA - It has increased the number of days of guaranteed employment from 100 days to 125 days. The objective is to provide more sustainable livelihood. - It has replaced demand driven guarantee by a provision of normative discretion in determination of kind of employment to be provided to assure dignified work. The act defines four types of projects related to rural asset, irrigation management, livelihood generation and productivity enhancement for giving work. - It has been converted into a centrally sponsored scheme which will increase total budgetary support and make state government more involved in asset creation. - It provisions for better working conditions by creating rest space, sheds, creche for children and drinking water capacity - It provisions interest at 0.05%, per day in case of delay of payment to workers. - It includes real time in camera verification of workers Thus it is claimed that the new scheme is more in sync with the ideals of developed India by 2047.

Ans17.) Government introduced PM Dhan Dhanya Krishi Yojana from July 2025. It aims to promote growth in 100 agricultural districts through saturation based convergence of 36 Central schemes across 11 ministries. It has an annual budget of ₹24000 crore for a period of 6 years. It also includes convergence of state schemes and local partnership with private sector. It focuses on coordinated delivery of existing schemes. It is expected to benefit 1.7 crore farmers. The main objectives are - Enhancing agriculture productivity - Encouraging crop diversification and sustainable development - Augmenting post harvest storage - Improving irrigation infrastructure - Enabling better access to credit. 100 districts will be identified on the basis of low productivity, low cropping intensity and low credit disbursement. Each selected district will establish district Dhan dhanya krishi yojana Committee chaired by district collector. The committee will make plans for cropping pattern, crop diversification, expansion of natural and organic farming, water conservation and promotion of self sufficient agriculture. The performance will be tracked using 117 key indicators. Niti ayog will provide the knowledge support and it will be supported by a strong digital setup. Therefore it plans to transform agriculture and allied activities by value addition, productivity, local livelihoods and increased farmer's income.

Ans16.) The govt launched national green hydrogen mission in 2023 as an umbrella program to establish a green hydrogen ecosystem in India. By 2030 the mission will be supported by 125 gw of renewable energy capacity dedicated to it. The investment planned are more than ₹ 8 trillion. It is expected to create 6 lakh jobs, reduce fossil fuel imports by ₹1 trillion and reduce ghg emission by 50 mmt. It has a total government budget support of ₹ 19746 crore till 2030. It includes ₹17500 crore for SIGHT, 1450 cr for pilot projects & ₹400 cr for R&D. It has four pillars of estb policy and regulation framework, demand creation, R&D innovation and enabling infrastructure. In Oct 2025 MNRE has recognized 3 major ports as green hydrogen hub. Govt has also initiated green hydrogen certification schemes from 2026. Govt has planned to replace fossil fuel based feedstock in fertilizer production by green hydrogen. Pilot projects for steel manufacturing through green hydrogen from March 2026. Promoting use in vehicle fuel and for high altitude transmission. Thus govt is trying to establish India as a major hub of green hydrogen peoduction

Ans.) India had made a pledge to reach 50% of its energy generation through renewable energy sources under Panchamrit and that has been achieved 5 years before targeted year of 2030. The steps taken are - Establishing solar energy corporation of India for auctioning of both wind and solar energy. - Promoting financing through India Renewable Energy Development Agency. - Accelerated depreciation benefits and tax rebate upto 30% was provided initially for first 7 years to encourage solar energy. - Training solar mitra as technicians to support rural areas by establishing support - Govt has increased import duty on solar panels and photo voltaic cells which has increased production capacity by 300% in both in last 3 years. - India has been a founder member of International Solar Mission to promote solar energy in agriculture and in underdeveloped countries. - Govt has introduced SIGHT to promote green hydrogen production with a budget of ₹19400 crores - SHANTI bill to promote expansion of nuclear energy in India. - Provision of ₹3000 crore in budget to develop compressed bio gas. This has resulted in total renewable energy capacity of 283 GW by June 2026 and India is on track of achieving 500gw capacity by 2030.

Q21.) Explain the recent project on coal gasification. 150 words. Q22.) Critically analyse energy security in India. 250 words. Q23.) Critically analyse the functioning of pds in India.150 words. Q24.) Explain the steps taken to promote food processing in India. 150 words. Q25.) Critically analyse Make in India project. 250 words.

Q15.) Explain the steps that have been taken to promote renewable energy development in India.150 words Q16.) Examine green hydrogen mission in India. 250 words Q17.) Explain govt project of Krishi dhan dhanya yojana. 150 words Q18.) How is VB G RAM G an improvement over MNREGA?150 words Q19.) Critically analyse the economic prospects of Indian railway. 250 words Q20.) Explain the benefits of Sagarmala scheme. 150 words.