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EPFO: Interest Rate for 2020-21

Why in News Recently, the Employees Provident Fund Organisation (EPFO) recommended that subscribers be given 8.5% interest rate for Provident Fund...

05 Mar 2021 Employment
PLI Scheme for IT Hardware and Pharmaceuticals

Why in News Recently, the Union Cabinet has cleared Production-Linked incentive (PLI) schemes for pharmaceuticals and IT hardware, including...

26 Feb 2021 Employment
Draft National Migrant Labour Policy

Why in News Recently, NITI Aayog, along with a working subgroup of officials and members of civil society, has prepared a draft National Migrant...

24 Feb 2021 Employment
Scheme of Fund for Regeneration of Traditional Industries

Why in News The Ministry of Micro, Small & Medium Enterprises (MSME) inaugurated 50 artisan-based SFURTI clusters, spread over 18 States, to...

23 Feb 2021 Employment
The Big Picture: Bare Necessities Index

Why in News? Despite the widespread efforts and improvements, inequalities in access to bare necessities like drinking water, sanitation,...

16 Feb 2021 Employment
The Big Picture: Budget 2021 for Green Energy

Why in News? The Union Budget for FY 2021-22 presented by the Union Minister of India, has exclusively focussed on Green Energy...

09 Feb 2021 Employment
Taxing Interest Incomes on EPF

Why in News The Union Budget 2021-22 proposed to tax the interest income on Provident Fund (PF) contributions by employees exceeding Rs. 2.5 lakh a...

05 Feb 2021 Employment
Shadow Entrepreneurship

This article is based on “Rise of shadow entrepreneurship” which was published in The Hindu on 18/01/2021. It talks about the benefits...

25 Jan 2021 Employment
Female Labor Force Participation In India

This article is based on “Enhancing women’s employment is key to economic recovery” which was published in The Hindustan Times on...

21 Jan 2021 Employment
Tourism Sector In India

This article is based on “In our past lies our future… Indian tourism hasn’t marketed the precious assets embedded in our...

20 Jan 2021 Employment
Shadow Entrepreneurs

Why in News There has been a global rise of shadow entrepreneurship, in various sectors such as education (certificates), finance (for easy loans),...

20 Jan 2021 Employment
Main Bhi Digital Drive for Street Vendors

Why in News The Ministry of Housing and Urban Affairs (MoHUA) is going to launch ‘Main Bhi Digital (me too digital)’ drive for the...

28 Dec 2020 Employment
Database of Migrants

The Government has decided to create a database of migrant workers, including workers in the informal economy. Migration is the movement of people...

15 Dec 2020 Employment
Technological Revolution, Covid-19 & Labour Market

This article is based on “The Future of Work in the Post-COVID-19 World” which was published in The Economic & Political Weekly on...

12 Nov 2020 Employment
PLI Scheme for Ten More Sectors

Why in News The Union Cabinet has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 more sectors for enhancing...

12 Nov 2020 Employment
Growing Trend of Jobs for Locals

Why in News Recently, Haryana Assembly has passed the Haryana State Employment of Local Candidates Bill, 2020 to reserve 75% of private-sector jobs...

06 Nov 2020 Employment
Provisions For Platform Workers

Why in News The Code on Social Security, 2020, for the first time in Indian law, attempted to define ‘platform work’ outside of the...

02 Nov 2020 Employment
Sexual Harassment and the Code on Wages

Why in News According to a provision in the Code on Wages 2019, ‘conviction for sexual harassment’ can be a ground for denying bonus...

31 Oct 2020 Employment
Quarterly Periodic Labour Force Survey

Why in News Recently, the National Statistical Office (NSO) released the quarterly Periodic Labour Force Survey (PLFS) for October-December...

30 Oct 2020 Employment
India in BRICS Ministers’ Meeting

Why in News Recently, the BRICS Labour and Employment Ministers’ Virtual Meeting was held under the Russian Presidency. It aimed to discuss...

13 Oct 2020 Employment

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		'title' => 'EPFO: Interest Rate for 2020-21',
		'description' => '<h3>Why in News</h3>
<ul style="list-style-type: square;">
<li>Recently, the <a href="/daily-updates/daily-news-analysis/epfo-disbursed-claims" target="_blank" rel="noopener"><strong>Employees Provident Fund Organisation (EPFO</strong></a>) recommended that subscribers be given <strong>8.5% interest rate for Provident Fund contributions (under Employees&rsquo; Provident Funds Scheme)</strong> for 2020-2021.</li>
</ul>
<div class="border-bg">
<p><strong>Employees&rsquo; Provident Funds (EPF) Scheme</strong></p>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-analysis/withdrawal-from-epf-accounts" target="_blank" rel="noopener"><strong>EPF</strong></a> is the main scheme under the <strong>Employees&rsquo; Provident Funds and Miscellaneous Act, 1952.</strong></li>
<li>This scheme <strong>offers the institution of provident funds</strong> for factory employees and other establishments.</li>
<li>The employee and employer each contribute 12% of the employee&rsquo;s basic salary and dearness allowance towards EPF.<br />
<ul style="list-style-type: circle;">
<li>The <a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener"><strong>Economic Survey</strong></a> 2016-17 had suggested that <strong>employees be allowed to choose</strong> whether or not to save <strong>12%</strong> of their salary into EPF or keep it as take home pay.</li>
</ul>
</li>
<li>As per current laws, <strong>a person mandatorily becomes a member of EPF if his monthly salary does not exceed Rs. 15,000.</strong></li>
</ul>
</div>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Interest Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>The interest rate was <strong>kept the same</strong> as the previous year.<br />
<ul style="list-style-type: disc;">
<li>In March 2020, EPFO had<strong> reduced interest rate on provident fund deposits to 8.5%</strong> for the year 2019-2020.</li>
<li>The interest rate was <strong>8.65% in 2018-19 </strong>and<strong> 8.55% for 2017-18.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>High Returns:</strong><br />
<ul style="list-style-type: circle;">
<li>Amid falling interest rates owing to the <a href="/daily-updates/daily-news-analysis/impact-of-economic-slowdown-due-to-covid-19#:~:text=The%20government%20is%20likely%20to,the%20fiscal%20year%202019%2D20." target="_blank" rel="noopener"><strong>economic slowdown</strong></a> throughout 2020 due to the <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid-19 pandemic</strong></a>, the EPFO has managed to<strong> hold</strong> on to <strong>the high interest rate</strong> of 8.5% in the current year.</li>
</ul>
</li>
<li><strong>Reason for High Returns:</strong><br />
<ul style="list-style-type: circle;">
<li>The interest rate recommended was a r<strong>esult of the income from interest from <a href="/daily-updates/daily-news-editorials/mutual-funds-and-emerging-indian-economy" target="_blank" rel="noopener">debt investment</a></strong> and <strong>income from equity investment.</strong><br />
<ul style="list-style-type: disc;">
<li>EPFO had decided to <strong>liquidate investment in equity</strong> through <a href="/daily-updates/daily-news-analysis/bharat-bond-exchange-traded-fund" target="_blank" rel="noopener"><strong>exchange traded funds</strong></a>, which it had started in <strong>2015-2016.</strong></li>
<li>This has <strong>enabled EPFO to provide higher return</strong> to its subscribers and still allowing EPFO with healthy surplus to act as cushion for providing higher return in future also.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Key Terms</strong></p>
<ul style="list-style-type: square;">
<li><strong>Debt Investment:</strong><br />
<ul style="list-style-type: circle;">
<li>It refers to an investor<strong> lending money</strong> to a firm or project sponsor with the expectation that the borrower will <strong>pay back the investment with interest.</strong></li>
</ul>
</li>
<li><strong>Equity Investment:</strong> <br />
<ul style="list-style-type: circle;">
<li>It is the money that is invested in a company <strong>by purchasing shares</strong> of that company in the stock market.</li>
</ul>
</li>
</ul>
</div>
<h3>Employees Provident Fund Organisation</h3>
<ul style="list-style-type: square;">
<li>It is a <strong>government organization</strong> that manages <strong>provident fund and pension accounts</strong> for the workforce engaged in the organized sector in India.</li>
<li>It implements the <strong>Employees&rsquo; Provident Fund and Miscellaneous Provisions Act, 1952</strong>.<br />
<ul style="list-style-type: circle;">
<li>The Employees&rsquo; Provident Fund and Miscellaneous Provisions Act, 1952 provides for the institution of provident funds for employees in factories and other establishments.</li>
</ul>
</li>
<li>It is administered by the Ministry of Labour &amp; Employment, Government of India.</li>
<li>It is <strong>one of the World's largest Social Security Organisations</strong> in terms of clientele and the volume of financial transactions undertaken.</li>
</ul>
<p><a href="https://www.thehindu.com/business/Economy/epfo-fixes-85-interest-on-epf-deposits-for-2020-21/article33987718.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7786,
		'category_id' => (int) 21,
		'title' => 'PLI Scheme for IT Hardware and Pharmaceuticals',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Union Cabinet has cleared <a href="/daily-updates/daily-news-analysis/pli-scheme-for-ten-more-sectors" target="_blank" rel="noopener"><strong>Production-Linked incentive (PLI)</strong></a> schemes for <a href="/daily-updates/daily-news-editorials/india-s-pharma-sector" target="_blank" rel="noopener"><strong>pharmaceuticals</strong></a> and<strong> IT hardware,</strong> including laptops, which would cost the government as much as Rs. 22,350 crore.</p>
<ul style="list-style-type: square;">
<li>Earlier, the government had announced the <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>PLI scheme for medical devices, mobile phones</strong></a> and specified active pharmaceutical ingredients, with a proposed outlay of Rs. 51,311 crore.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>It aims to give companies<strong> incentives on incremental sales</strong> from products manufactured in domestic units.</li>
<li>It invites foreign companies to set units in India, however, it also <strong>aims to encourage local companies</strong> to set up or expand existing manufacturing units.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1614327847_image1.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1614327847_image1.png" style="display: block; margin-left: auto; margin-right: auto;" width="350" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>IT Hardware Sector:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>The scheme, worth Rs. 7350 crore, will <strong>offer 1-4% cash incentives</strong> on net incremental sales (over<strong> base year</strong> 2019-20) for IT products manufactured in India.</li>
<li>The <strong>Target Segments</strong> include Laptops, Tablets, All-in-One PCs and Servers.</li>
<li><strong>Duration:</strong> 4 years</li>
</ul>
</li>
<li><strong>Benefits:</strong><br />
<ul style="list-style-type: disc;">
<li>India will be well positioned as a global hub for <strong>Electronics System Design and Manufacturing (ESDM)</strong> on account of integration with global value chains, thereby becoming a destination for IT Hardware exports.</li>
<li><strong>Employment Generation</strong> potential of over 1,80,000 (direct and indirect) over 4 years.</li>
<li>Provide impetus to <strong>Domestic Value Addition</strong> for IT Hardware which is expected to <strong>rise to 20-25% by 2025.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Pharmaceutical Sector:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>The <strong>Rs. 6,940-crore PLI scheme implemented in 2020</strong> focuses on the critical bulk drugs, whereas <strong>this scheme is likely to focus on other types of bulk drugs.</strong></li>
<li>It intends to give <strong>incentives between 2020-21 and 2028-29 (9 years).</strong></li>
<li><strong>Drug manufacturers</strong> applying for the scheme will have to be registered in India and<strong> will be placed into one of three categories</strong> based on their Global Manufacturing Revenue (GMR).</li>
</ul>
</li>
<li><strong>Categories of Drugs Targeted by the Scheme:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>First Category:</strong><br />
<ul style="list-style-type: disc;">
<li>It includes biopharmaceuticals, complex generics, patented and <a href="/daily-updates/daily-news-analysis/covid-19-and-the-orphan-drug-act" target="_blank" rel="noopener"><strong>orphan drugs</strong></a>, often expensive for which India relies a lot on multinational drug makers.</li>
</ul>
</li>
<li><strong>Second Category:</strong><br />
<ul style="list-style-type: disc;">
<li>It comprises <a href="/daily-updates/daily-news-analysis/report-on-active-pharmaceutical-ingredients-tifac" target="_blank" rel="noopener"><strong>Active Pharmaceutical Ingredients (APIs)</strong></a>, Key Starting Materials (KSMs) and Drug Intermediates (DIs).</li>
</ul>
</li>
<li><strong>Third Category:</strong> <br />
<ul style="list-style-type: disc;">
<li>It includes other critical repurposed, auto-immune, anti-<strong><a href="/daily-updates/daily-news-analysis/national-cancer-awareness-day#:~:text=According%20to%20the%20World%20Health,2018%20against%209.5%20million%20globally." target="_blank" rel="noopener">cancer</a></strong>, anti-diabetic, <a href="/loksabha-rajyasabha-discussions/hiv-new-hope" target="_blank" rel="noopener"><strong>anti-retroviral</strong></a>, anti-infective and <a href="/daily-updates/daily-news-analysis/higher-mortality-from-cardio-vascular-diseases" target="_blank" rel="noopener"><strong>cardiovascular</strong></a> drugs as well as in-vitro diagnostic devices and drugs not manufactured in India.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Incentives:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>For First and Second Category:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>10%</strong> of incremental sales value for the first four year of the scheme, followed by <strong>8%</strong> for the fifth year and<strong> 6%</strong> for the sixth year of production under the scheme.</li>
</ul>
</li>
<li><strong>For Third Category:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>5%</strong> of incremental sales value for the first four years, <strong>4%</strong> for the fifth year and<strong> 3%</strong> for the sixth year.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Benefits of PLI in Pharmaceuticals:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Reduced Dependency on China:</strong><br />
<ul style="list-style-type: disc;">
<li>India&rsquo;s capabilities in APIs have reduced over the years, mostly due to<strong> cheaper alternatives from China.</strong></li>
<li>The pharmaceutical industry here is currently dependent on the bordering country for nearly <strong>70% of the bulk drugs it imports.</strong></li>
</ul>
</li>
<li><strong>Enhance Exports:</strong><br />
<ul style="list-style-type: disc;">
<li>The Indian pharmaceutical industry is the third-largest globally in terms of the volume term of production and is worth <strong>USD 40 billion in value.</strong></li>
<li>The country contributes <strong>3.5% of total drugs and medicines exported globally.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/india/govt-clears-pli-scheme-to-boost-manufacturing-of-laptops-tablets-pcs-7202926/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 7764,
		'category_id' => (int) 21,
		'title' => 'Draft National Migrant Labour Policy',
		'description' => '<h3>Why in News</h3>
<p>Recently, <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener"><strong>NITI Aayog</strong></a>, along with a working subgroup of officials and members of civil society, has prepared a <strong>draft National Migrant Labour policy.</strong></p>
<ul style="list-style-type: square;">
<li>Earlier in December 2020, the Indian government decided to create a <a href="/daily-updates/daily-news-analysis/database-of-migrants#:~:text=The%20Government%20has%20decided%20to,workers%20in%20the%20informal%20economy.&amp;text=As%20per%20the%20Census%2C%20India,31%25%20of%20the%20population)." target="_blank" rel="noopener"><strong>database of migrant</strong></a> workers, including workers in the <a href="/daily-updates/daily-news-analysis/1-6-billion-risk-losing-jobs-ilo" target="_blank" rel="noopener"><strong>informal economy</strong></a>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Migration:</strong>
<ul style="list-style-type: circle;">
<li><a href="/to-the-points/paper1/human-migration-in-india" target="_blank" rel="noopener"><strong>Migration</strong></a> is the <strong>movement of people away from their usual place of residence,</strong> across either internal (within country) or international (across countries) borders.</li>
<li>The latest government data on migration comes from the 2011 <strong><a href="/daily-updates/daily-news-analysis/census-2021" target="_blank" rel="noopener">Census</a>.</strong> As per the Census, India had <strong>45.6 crore migrants in 2011</strong> (38% of the population) compared to <strong>31.5 crore migrants in 2001</strong> (31% of the population).</li>
</ul>
</li>
<li><strong>Current Issues with Migrants:</strong>
<ul style="list-style-type: circle;">
<li><strong>Independent Migrants:</strong>
<ul style="list-style-type: disc;">
<li>The <strong>Inter State Migrant Workers Act, 1979</strong> covers only labourers migrating through a contractor, and<strong> leaves out independent migrants.</strong></li>
</ul>
</li>
<li><strong>Community Building Organisations (CBO):</strong>
<ul style="list-style-type: disc;">
<li>The absence of CBO and administrative staff in the source states has hindered access to development programmes, <strong>pushing tribals towards migration.</strong></li>
</ul>
</li>
<li><strong>Lack of Engagement by State Governments:</strong>
<ul style="list-style-type: disc;">
<li>State labour departments have little engagement with migration issues, and are in <strong>halting human trafficking mode.</strong></li>
</ul>
</li>
<li><strong>Middlemen:</strong>
<ul style="list-style-type: disc;">
<li>The local administration, given the usual constraints of manpower, is not in a position to monitor, making the way <strong>for middlemen</strong> to thrive on the situation and entrap migrants.</li>
</ul>
</li>
</ul>
</li>
<li><strong>NITI Aayog&rsquo;s Draft Approach:</strong>
<ul style="list-style-type: circle;">
<li>The draft describes two approaches to policy design:
<ul style="list-style-type: disc;">
<li>Focus on <strong>cash transfers, special quotas,</strong> and <strong>reservations.</strong></li>
<li><strong>Enhance the agency and capability</strong> of the community and thereby remove aspects that come in the way of an individual&rsquo;s own natural ability to thrive.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Draft Recommendations:</strong>
<ul style="list-style-type: circle;">
<li><strong>Facilitate Migration:</strong>
<ul style="list-style-type: disc;">
<li>Migration should be acknowledged as an <strong>integral part of development,</strong> and government policies should not hinder but seek to<strong> facilitate internal migration.</strong></li>
</ul>
</li>
<li><strong>Increase Wages:</strong>
<ul style="list-style-type: disc;">
<li>However, the draft asks source states to<strong> raise minimum wages</strong> to bring major shifts in local livelihood of tribals which may result in stemming migration to some extent.</li>
</ul>
</li>
<li><strong>Central Database:</strong>
<ul style="list-style-type: disc;">
<li>There should be a <strong>central database to help employers &ldquo;fill the gap between demand and supply&rdquo;</strong> and ensure <strong>&ldquo;maximum benefit of social welfare schemes&rdquo;.</strong></li>
<li>It asks the Ministries and the Census office to be<strong> consistent with the definitions of migrants and subpopulations,</strong> capture seasonal and circular migrants, and <strong>incorporate migrant-specific variables in existing surveys.</strong></li>
</ul>
</li>
<li><strong>Migration Resource Centres:</strong>
<ul style="list-style-type: disc;">
<li>The Ministries of Panchayati Raj, Rural Development, and Housing and Urban Affairs should use Tribal Affairs migration data to<strong> help create migration resource centres in high migration zones.</strong></li>
<li>The Ministry of Skill Development and Entrepreneurship should focus on <strong>skill-building</strong> at these centres.</li>
</ul>
</li>
<li><strong>Education:</strong>
<ul style="list-style-type: disc;">
<li>The Ministry of Education should take measures under the <a href="/to-the-points/Paper2/right-to-education" target="_blank" rel="noopener"><strong>Right to Education Act 2009</strong></a> to <strong>mainstream migrant children&rsquo;s education,</strong> to map migrant children, and to provide local-language teachers in migrant destinations.</li>
</ul>
</li>
<li><strong>Shelter and Accomodation:</strong>
<ul style="list-style-type: disc;">
<li>The Ministry of Housing and Urban Affairs should address issues of <strong>night shelters, short-stay homes, and seasonal accommodation</strong> for migrants in cities.</li>
</ul>
</li>
<li><strong>Grievance Handling Cells:</strong>
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/national-legal-services-day-1" target="_blank" rel="noopener"><strong>National Legal Services authority (NALSA)</strong></a> and Ministry of Labour should set up <strong>grievance handling cells and fast track legal responses</strong> for trafficking, minimum wage violations, and workplace abuses and accidents for migrant workers.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Previous Recommendations:</strong>
<ul style="list-style-type: circle;">
<li><strong>Report of the Working Group on Migration,</strong> released in January 2017 by the then Ministry of Housing and Urban Poverty Alleviation<strong> recommended a comprehensive law for these workers,</strong> which would form the legal basis for an architecture of social protection.
<ul style="list-style-type: disc;">
<li>This was in line with the recommendations of a <strong>2007 report by the National Commission for Enterprises in the Unorganised Sector</strong> under the Ministry of Micro, Small and Medium Enterprises.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>A rights-based approach to welfare and social security would <strong>work only if the workers have agency, politicisation, unionisation and mobilisation</strong> as workers in the past have forced parties and governments to see welfare as an essential aspect of industrial development.</li>
<li>The government has taken steps to ensure portability of welfare schemes, especially access to the<a href="/to-the-points/paper3/public-distribution-system-1" target="_blank" rel="noopener"><strong> public distribution system</strong></a>, beyond state borders. <strong>More needs to be done on that front.</strong></li>
<li>The NITI Aayog draft is a <strong>prompt to reimagine labour-capital relations</strong> while integrating the migrant workers within the formal workforce. This is <strong>necessary to build a compassionate society and a competitive economy.</strong></li>
</ul>
<p><a href="https://indianexpress.com/article/explained/niti-aayog-migrant-workers-policy-covid-lockdown-7201753/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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		'article_id' => (int) 7756,
		'category_id' => (int) 21,
		'title' => 'Scheme of Fund for Regeneration of Traditional Industries',
		'description' => '<h3>Why in News</h3>
<p>The <strong>Ministry of Micro, Small &amp; Medium Enterprises (MSME)</strong> inaugurated 50 artisan-based <a href="/daily-updates/daily-news-analysis/support-and-outreach-initiative-for-msme-sector" target="_blank" rel="noopener"><strong>SFURTI</strong></a> clusters, spread over 18 States, to provide a boost to the MSME sector.</p>
<ul style="list-style-type: square;">
<li>The Ministry of MSME is implementing a Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with a view to organize traditional industries and artisans into clusters to make them competitive and increase their income.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The Ministry of MSME launched this scheme in the year 2005 with the view to promote Cluster development. <br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/important-facts-for-prelims-7th-may-2019" target="_blank" rel="noopener"><strong>Khadi and Village Industries Commission (KVIC)</strong></a> is the nodal Agency for promotion of Cluster development for Khadi as well as for Village Industries products.</li>
</ul>
</li>
<li>SFURTI clusters are of two types i.e., <strong>Regular Cluster</strong> (500 artisans) with Government assistance of up to Rs. 2.5 crore and <strong>Major Cluster</strong> (more than 500 artisans) with Government assistance up to Rs. 5 crore.</li>
<li>The Ministry<strong> supports various interventions</strong> including setting up of infrastructure through Common Facility Centers (CFCs), procurement of new machineries, creating raw material banks, design intervention, improved packaging, improved skills and capacity development, etc.</li>
<li>Besides, the scheme focuses on <strong>strengthening the cluster governance systems</strong> with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them.<br />
<ul style="list-style-type: circle;">
<li>It is done through building innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster- based traditional Industries.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Other Recent Initiatives to Promote MSME Sector</strong></p>
<ul style="list-style-type: square;">
<li><strong>Udyog Aadhaar Memorandum (UAM):</strong> It is a simple one-page registration form to promote ease of doing business for MSMEs in India.</li>
<li><strong>A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE):</strong> The scheme promotes innovation &amp; rural entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start up creation in the agro-based industry.</li>
<li><strong>Credit Guarantee Fund Scheme:</strong> To facilitate easy flow of credit, guarantee cover is provided for collateral free credit extended to MSMEs.</li>
<li><strong>Prime Minister&rsquo;s Employment Generation Programme (PMEGP):</strong> It is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country.</li>
<li><strong>Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation:</strong> CLCSS aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy for purchase of plant &amp; machinery.</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1700034" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 7699,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Bare Necessities Index',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/KsO0iam8o5o" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen" data-mce-fragment="1"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>Despite the widespread efforts and improvements, inequalities in access to <strong>bare necessities</strong> like <strong>drinking water, sanitation, hygiene and housing conditions</strong> continue to exist between urban and rural India.
<ul style="list-style-type: circle;">
<li>The above inference is drawn from the <a href="/daily-updates/daily-news-analysis/highlights-of-economic-survey-2021" target="_blank" rel="noopener"><strong>Economic Survey for 2020-21</strong></a> in its newly constructed <strong>&ldquo;Bare Necessities Index&rdquo; (BNI).</strong></li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The BNI is built on the idea of <strong>Thalinomics</strong> in the <a href="/daily-updates/daily-news-analysis/economic-survey-2019-20-highlights" target="_blank" rel="noopener"><strong>Economic Survey for 2019-20</strong></a>, through which it had sought to examine the access to food in the country.</li>
<li>The Economic Survey (2020-21) has underlined the <strong>need to focus on reducing variations in the access to bare necessities across states,</strong> between rural and urban areas, and between income groups.</li>
<li>With us moving to a completely digital era, the <strong>bare necessities are no more confined to &ldquo;Roti, Kapda aur Makan&rdquo;</strong> but goes beyond it.</li>
<li><strong>Access to technology; smartphones, internet</strong> and connectivity with the whole nation are the <strong>newly added bare necessities</strong> to go hand in hand with the world.</li>
</ul>
<div class="border-bg">
<p><strong>Thalinomics</strong></p>
<ul style="list-style-type: square;">
<li>In the 2019-20 Economic Survey, Thalinomics was introduced to make an <strong>attempt to relate economics to the common person using something that an individual encounters every day -</strong> a plate of food i.e a Thali.</li>
<li>Affordability of Thalis vis-&agrave;-vis a day&rsquo;s pay of a worker has<strong> improved over time,</strong> indicating improved welfare of the common person.</li>
</ul>
</div>
<h3>Bare Necessities Index</h3>
<ul style="list-style-type: square;">
<li>The <strong>Bare Necessities Index (BNI)</strong> is based on the large annual household survey data.
<ul style="list-style-type: circle;">
<li>It is constructed using suitable indicators and methodology at district level for all/targeted districts.</li>
</ul>
</li>
<li>The BNI summarises<strong> 26 indicators on five dimensions -</strong> water, sanitation, housing, micro-environment, and other facilities and has been created for all states for 2012 and 2018 using NSO data.</li>
<li>The index classifies areas on three levels of access- <strong>high, medium, low</strong> to bare necessities.</li>
<li><strong>Utility of data:</strong>
<ul style="list-style-type: circle;">
<li>To check inter state disparities or a progress of a particular state over time.</li>
<li>To check the efficacy of policies/ schemes implemented to meet these bare necessities.</li>
</ul>
</li>
<li><strong>Improvement in bare necessities:</strong>
<ul style="list-style-type: circle;">
<li>Bare necessities have improved across all States in the country in 2018 as compared to 2012.</li>
<li>Increase in equity is noteworthy as the rich can access private options for public goods.</li>
</ul>
</li>
</ul>
<p><strong>Steps taken to Provide the Bare Necessities</strong></p>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-analysis/pradhan-mantri-awas-yojana-grameen-behind-target" target="_blank" rel="noopener"><strong>Pradhan Mantri Awas Yojana</strong></a> and <a href="/daily-updates/daily-news-analysis/saubhagya-scheme" target="_blank" rel="noopener"><strong>Saubhaggya yojana</strong> </a>for housing.</li>
<li><a href="/daily-updates/daily-news-analysis/ayushman-bharat-pm-jay-sehat-jk" target="_blank" rel="noopener"><strong>PM-JAY</strong></a> and <a href="/daily-updates/daily-news-analysis/national-health-mission-and-janani-suraksha-yojana" target="_blank" rel="noopener"><strong>National Health Mission</strong></a> for the health sector.
<ul style="list-style-type: circle;">
<li>Increased allocations for some of the bare necessities in the <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-health-and-wellbeing" target="_blank" rel="noopener"><strong>budget 2020-21</strong></a> such as the health.</li>
</ul>
</li>
<li><a href="/current-affairs-news-analysis-editorials/news-analysis/18-05-2020#:~:text=Government%20will%20launch%20PM%20eVIDYA,one%20nation%2C%20one%20digital%20platform)" target="_blank" rel="noopener"><strong>PM eVIDYA</strong></a>, <a href="/daily-updates/daily-news-analysis/swayam-and-swayam-prabha" target="_blank" rel="noopener"><strong>Swayam Massive Open Online Courses (MOOCs)</strong></a> and <a href="/daily-updates/daily-news-analysis/pragyata-guidelines-on-digital-education" target="_blank" rel="noopener"><strong>PRAGYATA</strong></a> in the educational sector.</li>
<li><a href="/daily-updates/daily-news-analysis/measures-on-atmanirbhar-bharat-3-0" target="_blank" rel="noopener"><strong>Aatmanirbhar Bharat Rozgar Yojana</strong></a>: It is aimed at incentivising the creation of new employment opportunities during the<a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19#:~:text=The%20World%20Health%20Organisation%20(WHO,31st%20December%2C%202019)." target="_blank" rel="noopener"> <strong>Covid-19</strong></a> economic recovery phase.</li>
<li><a href="/daily-updates/daily-news-analysis/sdg-india-index-by-niti-ayog#:~:text=The%20index%20documents%20the%20progress,which%20covered%20only%2013%20goals" target="_blank" rel="noopener"><strong>Niti Aayog Sustainable Development Goals Index</strong></a>: The index documents the progress made by India&rsquo;s States and Union Territories towards achieving the 2030 SDG targets.</li>
</ul>
<h3>Issues Associated</h3>
<p><strong>Internet Facility as a Bare Necessity</strong></p>
<ul style="list-style-type: square;">
<li>During the pandemic, besides the bare necessities, the <strong>biggest need was found to be the internet and smartphones,</strong> whether it was about working from home, or attending online classes.
<ul style="list-style-type: circle;">
<li>Most people were able to afford smartphones and the internet, but those who couldn&rsquo;t afford them, were found to be in a very deprived situation.</li>
</ul>
</li>
<li>Internet facilities and access to smartphones is a necessity in the present that has not been taken into account while preparing the list of bare necessities.
<ul style="list-style-type: circle;">
<li>To catch up with everyone else in this electronic world, the people who are devoid of these necessities need more uplift than just food and housing.</li>
</ul>
</li>
<li>Lack of equal internet access is not only a huge inequality in the education sector, but also in the health sector.
<ul style="list-style-type: circle;">
<li>With the increasing use of<strong> telemedicines, e-skilling, e-governance and e-education,</strong> not being provided with the internet facility, a major part of India will continue to be a laggard in this electronic world.</li>
</ul>
</li>
<li>Kerala which has an enormous <a href="/to-the-points/paper3/public-distribution-system-1" target="_blank" rel="noopener"><strong>Public Distribution System</strong></a>, still there children can be found facing several difficulties due to lack of internet access.
<ul style="list-style-type: circle;">
<li>Food, oil and unemployment allowance are provided to them by the government, but the internet is not included in the list.</li>
</ul>
</li>
</ul>
<p><strong>Multiplicity of Schemes</strong></p>
<ul style="list-style-type: square;">
<li>There are about<strong> 250-300 poverty alleviation schemes</strong> launched by central and state government at the district level which are<strong> almost similar in nature.</strong>
<ul style="list-style-type: circle;">
<li>This multiplicity of schemes is very infructuous.</li>
</ul>
</li>
<li>This<strong> brings inefficiency</strong> within the effective functioning of schemes and <strong>opens windows for corruption.</strong></li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Framing the policies keeping in mind the future needs and possibilities:</strong> The schemes shall be futuristic keeping in mind that the idea of bare necessities have changed over the years and will definitely change even more for the upcoming generation.</li>
<li><strong>Digital education aspect:</strong> One of the easiest ways is to target the younger, school-going generation and take into account what they need so that they get equal access to education.
<ul style="list-style-type: circle;">
<li><a href="/loksabha-rajyasabha-discussions/in-depth-digital-india" target="_blank" rel="noopener"><strong>Digital India</strong></a> and <a href="/daily-updates/daily-news-analysis/bharatnet-project" target="_blank" rel="noopener"><strong>Bharat Net</strong></a> must be accelerated.</li>
</ul>
</li>
<li><strong>Discouraging multiplicity of schemes:</strong> The high number of infructuous schemes shall be integrated.
<ul style="list-style-type: circle;">
<li>Quality should be raised instead of quantity, a few but well organised and effective schemes must be preferred over too many schemes creating chaos and confusions.</li>
<li><strong>Convergence of these schemes</strong> is needed, so that the schemes which are not necessary should be done away with.</li>
</ul>
</li>
<li><strong>Keeping the traditional as well as new needs into consideration:</strong> It is not an &lsquo;either this-or that&rsquo; situation, India shall focus on the traditional bare needs along with including smartphones and internet facilities as a basic need to bridge a digital divide in this technological era.
<ul style="list-style-type: circle;">
<li>The newly introduced &ldquo;digital aspect&rdquo; of bare needs must be addressed but the traditional needs must not be compromised, they must be taken into account at a priority basis.</li>
</ul>
</li>
<li><strong>The need of proper health facilities:</strong> The most important traditional bare need is <strong>public health which adheres to sewage and sanitation.</strong>
<ul style="list-style-type: circle;">
<li>A medical condition called <strong>environmental enteropathy</strong> is caused by poor health and sanitation conditions which<strong> infects people&rsquo;s ability to absorb nutrition.</strong></li>
<li>Environmental enteropathy (also called tropical enteropathy) is a<strong> subclinical condition caused by constant fecal-oral contamination</strong> and resulting in blunting of intestinal villi and intestinal inflammation.</li>
<li>Besides, every block hospital should be upgraded, upgradation of the hospitals will ultimately lead to the quantum leap in the health services available at the block level.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Bare Necessities Index is a <strong>good way to ensure equal access to the bare necessities</strong> across sectors, states and the country.
<ul style="list-style-type: circle;">
<li>It shows that there needs to be a<strong> special focus on public health.</strong></li>
</ul>
</li>
<li>Multiplicity of schemes has to be addressed and integrated; <strong>better synergy shall be there among the centre and states.</strong></li>
<li>The status of basic needs in the country must be improved as it would lead to the growth of the country and bring improvement in the rank of <strong><a href="/daily-updates/daily-news-analysis/human-development-index-undp" target="_blank" rel="noopener">Human development Index (HDI)</a>.</strong></li>
</ul>',
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	(int) 5 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7650,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Budget 2021 for Green Energy',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/n739bdyShz0" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The<a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong> Union Budget for FY 2021-22</strong> </a>presented by the Union Minister of India, has exclusively focussed on <strong>Green Energy initiatives.</strong></li>
<li>Budget 2021 has proposed the launch of the <strong>Hydrogen Energy Mission</strong> in this fiscal year. <br />
<ul style="list-style-type: circle;">
<li>Additional capital infusion for solar energy and renewable energy aspects has also been proposed.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The reforms in the budget have particularly focussed on <strong>green-growth.</strong>
<ul style="list-style-type: circle;">
<li>The initiative is expected to enhance the uptake of cleaner fuels in India.</li>
</ul>
</li>
<li>Budget 2021-22 talks about <a href="/daily-updates/daily-news-analysis/expansion-of-production-linked-incentive-scheme" target="_blank" rel="noopener"><strong>PLI scheme</strong></a> in Solar Manufacturing, <strong>Vehicle Scrappage Policy</strong> and the <strong>Hydrogen Energy Mission.</strong>
<ul style="list-style-type: circle;">
<li>The PLI scheme has also been extended to the <strong>ACCs.</strong></li>
</ul>
</li>
<li>The emphasis on <strong>green <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles" target="_blank" rel="noopener">hydrogen</a></strong> in the budget was in line with technological development and with a long-term vision towards <strong>reduced dependency on minerals and rare-earth element</strong>-based batteries as energy storage.
<ul style="list-style-type: circle;">
<li>Hydrogen is the key clean fuel for the future.</li>
</ul>
</li>
<li>For the first time there is<strong> private financing of ₹18,000 crore for 20,000 buses</strong> and innovative financing with <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>Public Private Partnerships</strong> </a>which would revolutionise the way public transport systems and buses function in India.
<ul style="list-style-type: circle;">
<li>The initiative is to promote<strong> less dependency on personal vehicles</strong> and eventually <strong>bring down the carbon footprints.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Hydrogen Energy Mission</strong></p>
<ul style="list-style-type: square;">
<li>The National Hydrogen Energy Mission <strong>aims to reduce petroleum use, greenhouse gas emissions, and air pollution,</strong> and contribute to more diverse and <strong>efficient energy infrastructure.</strong></li>
<li>It is now proposed to launch a Hydrogen Energy Mission in 2021-22 for generating <strong>hydrogen from green power sources.</strong></li>
<li>Green Hydrogen Mission is not only<strong> essential to decarbonise heavy industries</strong> like steel and cement, it also <strong>holds the key to clean electric mobility</strong> that doesn&rsquo;t depend on rare minerals.</li>
</ul>
<p><strong>Vehicle Scrappage Policy</strong></p>
<ul style="list-style-type: square;">
<li>The policy will be launched to <strong>phase out old and unfit vehicles.</strong>
<ul style="list-style-type: circle;">
<li>Under the scheme <strong>private vehicles older than 20 years and commercial vehicles older than 15 years</strong> will be eligible to be scrapped.</li>
</ul>
</li>
<li>This will help in<strong> encouraging fuel efficient, environment friendly vehicles</strong> thereby reducing vehicular pollution and oil import bill.
<ul style="list-style-type: circle;">
<li>Vehicles would undergo<strong> fitness tests in automated fitness centres</strong> after their defined period is over.</li>
</ul>
</li>
</ul>
</div>
<h3>Green Energy and Government</h3>
<ul style="list-style-type: square;">
<li><strong>India in leading countries:</strong> India comes in the list of the leading countries in terms of the <a href="/daily-updates/daily-news-editorials/power-sector-in-india" target="_blank" rel="noopener"><strong>Power Sector</strong> </a>or the <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan#:~:text=The%20renewable%20energy%20capacity%20in,year%20as%20we%20move%20forward" target="_blank" rel="noopener"><strong>Renewable Energy</strong></a> sector.
<ul style="list-style-type: circle;">
<li>India ranks at the<strong> fifth position among the countries of the world</strong> when it comes to the size of its <strong>energy economy.</strong></li>
<li>India is the <strong>fourth largest solar installed capacity country</strong> in the world and<strong> third largest renewable energy installed capacity</strong> country in the world.</li>
</ul>
</li>
<li><strong>Solar energy:</strong> The <a href="/daily-updates/daily-news-analysis/india-may-miss-100-gw-solar-power-target-by-2022-crisil-report#:~:text=Jawaharlal%20Nehru%20National%20Solar%20Mission,of%2020%2C000%20MW%20by%202022.&amp;text=The%20target%20will%20principally%20comprise,Grid%20Connected%20Solar%20Power%20Projects" target="_blank" rel="noopener"><strong>Jawaharlal Nehru National Solar Mission (JNNSM)</strong> </a>aimed to achieve<strong> 20 GW</strong> solar capacity by the year <strong>2022.</strong>
<ul style="list-style-type: circle;">
<li>However, the target was increased from <strong>20 GW to 100 GW by 2022</strong> in the 2015 Union Budget of India.</li>
<li>India&rsquo;s total solar power capacity alone has increased by more than 11 times since 2014 to June 2020, from <strong>2.6 GigaWatts (GW) to 38 GW.</strong></li>
<li>To encourage domestic production, the duties on <strong>solar inverters</strong> have been increased from <strong>5% to 20%,</strong> and on<strong> solar lanterns</strong> from<strong> 5% to 15%.</strong></li>
</ul>
</li>
<li><strong>Renewable energy:</strong> The Government of India had set a target of <strong>175 GW</strong> renewable power installed capacity by the end of 2022.
<ul style="list-style-type: circle;">
<li>This includes <strong>60 GW from wind power, 100 GW from solar power, 10 GW from biomass power</strong> and<strong> 5 GW from small hydro power.</strong>
<ul style="list-style-type: disc;">
<li>The renewable energy capacity in India is <strong>currently 136 Giga Watts,</strong> which is about <strong>36%</strong> of its total energy capacity.</li>
</ul>
</li>
<li>The <strong>2030 renewable targets</strong> were announced to be<strong> 450 gigawatt.</strong></li>
</ul>
</li>
<li><strong>Green energy and infrastructure development:</strong> The budget primarily focuses on spending on infrastructure development and no infrastructure project can be completed without energy involved in it
<ul style="list-style-type: circle;">
<li>However, in the present context, the energy involved has to be<strong> clean energy.</strong></li>
<li>The solar energy at present is<strong> available at 2 rs/unit</strong> which is even cheaper than the energy generated from a new coal power plant.</li>
<li>The domestic manufacturing capacity has been enhanced by the PLI schemes for manufacturing solar panels.
<ul style="list-style-type: disc;">
<li>Through the 2021-22 budget, the PLI scheme has been extended to the 10 sectors including <strong>automobile, pharma,</strong> electronic/<strong>technology</strong> products and manufacturing of <strong>advanced chemical cells battery</strong> (for electric vehicles).</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Advanced Chemistry Cells (ACCs)</strong></p>
<ul style="list-style-type: square;">
<li>ACCs are the new generation advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.</li>
</ul>
</div>
<h3>Green Hydrogen</h3>
<ul style="list-style-type: square;">
<li>The Hydrogen Energy Mission is one of the biggest announcements in the union budget 2021-22, specifying the<strong> hydrogen as green hydrogen.</strong>
<ul style="list-style-type: circle;">
<li>When hydrogen is extracted from water using electrolysis powered by renewable energy, it is called green hydrogen.</li>
</ul>
</li>
<li>Green hydrogen energy is vital for India to meet its <a href="/current-affairs-news-analysis-editorials/news-editorials/11-07-2019" target="_blank" rel="noopener"><strong>Nationally Determined Contribution (INDC) Targets</strong> </a>and ensure regional and national energy security, access and availability.</li>
<li>Currently, about<strong> 6 tonnes of hydrogen is produced</strong> in the country which will go up by <strong>5 times in 2050.</strong></li>
</ul>
<p><strong>Why Green Hydrogen?</strong></p>
<ul style="list-style-type: square;">
<li>Hydrogen can act as an<strong> energy storage option,</strong> which would be essential to meet intermittencies (of renewable energy) in the future.</li>
<li>In terms of mobility, for long distance mobilisations for either urban freight movement within cities and states or for passengers, it is a very promising initiative.
<ul style="list-style-type: circle;">
<li>Hydrogen can be used in railways, large ships, buses or trucks where electric-vehicles have a limitation for not having enough capacity for long distance travels.</li>
</ul>
</li>
<li>Hydrogen has the potential to be the key renewable target in supporting infrastructure as well.</li>
<li>Hydrogen can be used:
<ul style="list-style-type: circle;">
<li>As a carrier</li>
<li>As a fuel cum energy storage alternative for petrol and diesel</li>
<li>Directly as a <strong><a href="/daily-updates/daily-news-analysis/clean-fuel-hydrogen" target="_blank" rel="noopener">fuel</a></strong></li>
</ul>
</li>
<li>Countries across the world such as <strong>Japan</strong> are banging on hydrogen as a future energy media.
<ul style="list-style-type: circle;">
<li><strong>Germany</strong> and many other <strong>EU countries</strong> have already set an<strong> ambitious green hydrogen policy.</strong></li>
<li>Even countries like<strong> UAE</strong> and <strong>Australia</strong> that are traditionally considered as the laggards of climate action have moved towards green hydrogen.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated</h3>
<ul style="list-style-type: square;">
<li>In terms of challenges the <strong>cost of renewable electricity from</strong> hydrogen specifically, is the major problem. Public investments need to strategize and channel well.
<ul style="list-style-type: circle;">
<li>Moreover, currently hydrogen is around <strong>$6- $8/kg</strong> which is a price too high to bring it into conventional use.</li>
</ul>
</li>
<li>The other main hurdle is <strong>transporting hydrogen</strong> to long distances.
<ul style="list-style-type: circle;">
<li>Hydrogen in gaseous form is highly inflammable.</li>
<li>To ship liquid hydrogen, it needs to be chilled to -253&deg;C.</li>
</ul>
</li>
<li>Compared to other gases (or fuels),<strong> hydrogen lacks smell,</strong> which makes any<strong> leak detection almost impossible</strong> thus increasing the potential dangers.</li>
<li>To succeed as a renewable energy based economy, it is <strong>not just the manufacturing sector</strong> where India would want to excel but the<strong> entire supply chain.</strong>
<ul style="list-style-type: circle;">
<li>Currently, India is at about <strong>2-3 gw of solar photovoltaic</strong> module manufacturing capacity.</li>
<li>For the given 450 gw renewable targets for 2030, India needs <strong>30-40 gw of capacity addition</strong> of renewables per year which requires having:
<ul style="list-style-type: disc;">
<li>Maximum domestic manufacturing capability</li>
<li>Increasing the custom duty on solar panels as it will incentivise domestic players in india to set up manufacturing of solar panels and making the entire supply chain robust.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Pilot initiatives:</strong> India needs a strategy in place to launch such a big mission, such as a <strong>few pilot initiatives.</strong>
<ul style="list-style-type: circle;">
<li>Hydrogen is one of the alternative sources of energy that India really needs to consider from its energy security perspective and transportation or mobilisation.</li>
</ul>
</li>
<li><strong>Efforts at all levels:</strong> The budget perspective presses that a lot more needs to be done <strong>not only at center but at state level too.</strong>
<ul style="list-style-type: circle;">
<li>More than 11 states in India now have rolled out their own electric mobility plans and are focussing not only at manufacturing or job but also in <strong>demand creation.</strong></li>
</ul>
</li>
<li><strong>Exploring &ldquo;All&rdquo;ternatives:</strong> Not sticking to just one alternate resource but exploring other sources too.
<ul style="list-style-type: circle;">
<li>For either intra or inter-city movements, different technologies can co-exist and can give different contributions.</li>
<li>1 kg of hydrogen can work about 100 km but roughly it would take 7-8 litres of petrol for the same distance.</li>
</ul>
</li>
<li><strong>Incentivising the concept of green and clean energy: Green labelling of products</strong> needs to be in place so that consumers are aware that what they are consuming is environment friendly.
<ul style="list-style-type: circle;">
<li>In order to push them into using green energy, they must be<strong> made aware of the benefits</strong> of the energy they are consuming. Also, there can be<strong> extensive marketing and awareness campaigns.</strong></li>
</ul>
</li>
<li><strong>Capacity building:</strong> It should not only be about awareness but also about building the capacity of the industries so that we have manufacturing in place and eventually more job opportunities.
<ul style="list-style-type: circle;">
<li>Planning a road map where we generate employment while setting up green energy infrastructure and reducing carbon emission.</li>
</ul>
</li>
<li><strong>Exclusive expenditure on R&amp;D:</strong> There should be a good spending on R&amp;D and technology adoption in hydrogen energy and e-Vehicles because that is one area where India had a setback in Solar Photovoltaics.
<ul style="list-style-type: circle;">
<li>More capital infusion in R&amp;D and infrastructure is needed to reap the benefits of various geographical locations in terms of solar energy and an emerging untapped option of hydrogen energy to replace conventional energy.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Moving towards Green Energy is indeed a win-win situation; it will lead to not only the usage of cleaner energy for a cleaner environment but also it will boost various sectors of manufacturing and employment.</li>
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		'article_id' => (int) 7622,
		'category_id' => (int) 21,
		'title' => 'Taxing Interest Incomes on EPF',
		'description' => '<h3>Why in News</h3>
<p>The <a href="/daily-updates/daily-news-analysis/budget-2021-highlights-infrastructure" target="_blank" rel="noopener"><strong>Union Budget 2021-22</strong></a> proposed to tax the interest income on <strong><a href="/daily-updates/daily-news-analysis/epfo-disbursed-claims" target="_blank" rel="noopener">Provident Fund (PF)</a> contributions by employees exceeding Rs. 2.5 lakh a year</strong>.</p>
<ul style="list-style-type: square;">
<li>The Ministry of Finance <strong>expressed concerns over investments as much as Rs. 1 crore each month into PF</strong> and suggested it was <strong>unfair</strong> that they <strong>get tax concessions as well as an assured return</strong>.</li>
<li>The <strong>Employees&rsquo; Provident Fund (EPF) Scheme</strong> is managed under the aegis of the <strong>Employees&rsquo; Provident Fund Organisation (EPFO)</strong>. <br />
<ul style="list-style-type: circle;">
<li>EPFO is a <strong>government organization</strong> that manages provident fund and pension accounts for the workforce engaged in the organized sector in India.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the Employees&rsquo; Provident Fund (EPF) Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>The Employee Provident Fund is <strong>open for employees of both the Public and Private Sectors</strong>. Additionally, any organisation that employs <strong>at least 20 individuals is mandatorily</strong> liable to extend benefits of EPF to its employees.</li>
<li><strong>Both employer and employee contribute 12% of an employee's monthly salary</strong> (basic wages plus dearness allowance) to the Employees&rsquo; Provident Fund (EPF) scheme.<br />
<ul style="list-style-type: disc;">
<li>Of the employer's share of 12%,<strong> 8.33% is diverted towards the Employees Pension Scheme (EPS)</strong>.</li>
</ul>
</li>
<li>EPF scheme is <strong>mandatory for employees who draw a basic wage of Rs. 15,000 per month</strong>.</li>
<li>The <strong>EPF interest rate is declared every year by the EPFO</strong>.<br />
<ul style="list-style-type: disc;">
<li>EPFO implements <strong>the Employees&rsquo; Provident Fund and Miscellaneous Provisions Act, 1952</strong>.</li>
<li>The EPF Act, 1952 provides for the institution of provident funds for employees in factories and other establishments.</li>
</ul>
</li>
<li>This savings scheme offers<strong> tax exemption under Section 80C of the Income Tax Act</strong>.</li>
</ul>
</li>
<li><strong>Proposed Tax on Income:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> annual contribution to EPF and Gratuity</strong> - and also <strong>voluntary contributions to EPF</strong> - will be added. <strong>If the aggregate contribution exceeds Rs 2.5 lakh, the interest income on that will be taxed at the marginal tax rate</strong> in which the income of the individual falls.</li>
<li>Importantly, <strong>only the contribution linked to the employees' component will be calculated for taxation purposes</strong>. The <strong>employer&rsquo;s contribution towards the EPF will not be considered</strong> for the calculation.</li>
<li>The<strong> interest income on the additional contribution of a year will get taxed every year</strong>. <br />
<ul style="list-style-type: disc;">
<li>This means that if an individual&rsquo;s annual contribution to PF in FY22 is Rs. 10 lakh, the interest income on Rs 7.5 lakh will get taxed not only for FY22 but also for all subsequent years.</li>
</ul>
</li>
<li>The <strong>average normal EPF contributor would not be affected</strong> by this new proposal.</li>
</ul>
</li>
<li><strong>Reasons for Taxing Interest Income on PF Contributions:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Preventing Misuse of the Scheme:</strong> <br />
<ul style="list-style-type: disc;">
<li>The government has found instances <strong>where some employees are contributing huge amounts to these funds</strong> and are <strong>getting the benefit of tax exemption at all stages</strong> - contribution, interest accumulation and withdrawal.</li>
<li>Since any tax exemption is provided through taxpayers&rsquo; money, it was unfair to allow <strong>High Networth Individuals (HNIs)</strong> depositing large sums in EPF to earn an assured interest (under EPFO) and tax-free income together. <br />
<ul style="list-style-type: disc;">
<li><strong>HNIs:</strong> Those people with investable assets above a certain figure.</li>
</ul>
</li>
<li>Earlier, the <strong>government had capped the contributions by employers into employee welfare schemes</strong> like the EPF or the <a href="/daily-updates/daily-news-analysis/streamlining-of-national-pension-system" target="_blank" rel="noopener"><strong>National Pension Scheme</strong></a> or a superannuation plan, at Rs. 7.5 lakh a year. <br />
<ul style="list-style-type: disc;">
<li>However, government as well as private sector employees are allowed to make voluntary contributions over and above the statutory deductions into the <strong>general provident fund (available only for government employees) or EPF (available for government as well as private sector employees)</strong>.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Promoting Equity among PF Contributors:</strong><br />
<ul style="list-style-type: disc;">
<li>Of an estimated 4.5 crore EPF accounts, about 0.27% members had an average corpus of Rs. 5.92 crore and were earning over Rs. 50 lakh a year as &ldquo;tax-free assured interest&rdquo;.<br />
<ul style="list-style-type: disc;">
<li>This is a misuse of the welfare scheme aiming to promote savings and provide social security to lower and middle income groups of employees.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/news/national/123-lakh-high-net-worth-individuals-deposited-62500-crore-into-epf-accounts-in-2018-19/article33753096.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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	(int) 7 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7553,
		'category_id' => (int) 22,
		'title' => 'Shadow Entrepreneurship',
		'description' => '<div class="border">
<p>This article is based on<a href="https://www.thehindu.com/opinion/op-ed/rise-of-shadow-entrepreneurship/article33594643.ece" target="_blank" rel="noopener"><strong> &ldquo;Rise of shadow entrepreneurship&rdquo;</strong> </a>which was published in The Hindu on 18/01/2021. It talks about the benefits and issues associated with the Shadow Entrepreneurship.</p>
</div>
<p>Recently, a business school professor allegedly misused his faculty position to provide fake certificates to students. This is one of the many cases whereby people across the globe get cheated, owing to the unregulated nature of online activities.</p>
<p>The abovesaid case highlights the ill-effects of the global rise of shadow entrepreneurship. Shadow entrepreneurs manage a business that sells legitimate goods and services but they do not register their businesses. Shadow entrepreneurship is a key factor affecting economic development, both in a positive and negative sense.</p>
<p>Moreover, India has one of the highest numbers of shadow entrepreneurs in the world and with a rising gig economy, understanding shadow entrepreneurship becomes incredibly important.</p>
<h3>Positives of Shadow Entrepreneurship</h3>
<ul style="list-style-type: square;">
<li><strong>Providing Employment:</strong> Presently, India&rsquo;s manufacturing sector is unable to provide adequate formal employment opportunities to the youth. Moreover, there is a mismatch between education and job skills in the market.<br />
<ul style="list-style-type: circle;">
<li>In this context, the phenomenon of shadow entrepreneurship is seen as a potential driver of job growth and economic development.</li>
</ul>
</li>
<li><strong>Bridging Market Gap:</strong> Shadow entrepreneurs can help release the associated distortions and frictions in the market. <br />
<ul style="list-style-type: circle;">
<li>They can offer complementary services that traditional service providers may be constrained to offer or consumers might not be able to access.</li>
</ul>
</li>
<li><strong>Augmenting Social Services:</strong> Shadow entrepreneurialism may extend welfare support of government schemes, as they can address the accessibility, availability, or affordability issues.</li>
</ul>
<h3>Associated Concerns With Shadow Entrepreneurship</h3>
<ul style="list-style-type: square;">
<li><strong>Extension of Informal Labour:</strong> As Shadow Entrepreneurship is largely unregulated, it provides little job security and few benefits to its workers like social security, insurance, etc. <br />
<ul style="list-style-type: circle;">
<li>Therefore, it is an extension of India&rsquo;s informal labor, which has been prevalent for a long time and has remained unregulated.</li>
</ul>
</li>
<li><strong>Hampering Economic Growth:</strong> Shadow Entrepreneurship results in loss of tax revenue, the unfair competition to registered businesses, and also poor productivity - factors that hinder economic development.<br />
<ul style="list-style-type: circle;">
<li>Further, as the Shadow Entrepreneurship businesses are not registered, it takes them beyond the reach of the law and makes shadow economy entrepreneurs vulnerable to corrupt government officials.</li>
</ul>
</li>
<li><strong>National Security Implications:</strong> Shadow Entrepreneurship may also have cross-border and national security implications. For instance, the recently reported suspicious loans being provided by Chinese instant loan providers online.</li>
<li><strong>Increase in Scams:</strong> It will also mean that unscrupulous individuals who are not entrepreneurs per se but are complementary service providers will potentially take more advantage of these post-pandemic market constraints, extracting money from consumers by means such as document forgery.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Formalization:</strong> Informal sector entrepreneurship, poverty, and inequality are conditioned by a country's economic and political institutions. Therefore, Government policies could play a big role in helping shadow economy entrepreneurs transition to the formal economy. <br />
<ul style="list-style-type: circle;">
<li>Moreover, with proper economic and political frameworks in place, individuals are more likely to become 'formal' entrepreneurs and register their businesses.</li>
</ul>
</li>
<li><strong>Harmonization:</strong> There is a need for associated harmonization of activities between competition authorities of governments (in India&rsquo;s case the Ministry of Corporate Affairs in regulating shadow entrepreneurship and government departments in healthcare, education, or finance).</li>
<li><strong>Legislation:</strong> Given the magnitude of shadow entrepreneurship in India, it is not possible to formalize it in a short span of time. Therefore, the need of the hour is enabling legislation that regulates and provides social security benefits also.<br />
<ul style="list-style-type: circle;">
<li>In this context, the recent <strong><a href="/loksabha-rajyasabha-discussions/the-big-picture-the-labour-code-bills" target="_blank" rel="noopener">Code on Social Security Bill, 2020</a></strong>, is a step in the right direction. For the first time, it acknowledges platform workers and <a href="/daily-updates/daily-news-analysis/gig-economy" target="_blank" rel="noopener"><strong>gig workers</strong></a> as new occupational categories.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>Shadow entrepreneurship may temporarily tackle issues like the unemployment crisis or market gap but given monitoring needs of public goods distribution for the developing world, without regulation, the situation could spiral out of control.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fefff2;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Shadow entrepreneurship is a key factor affecting economic development, both in a positive and negative sense. Discuss.</p>
</td>
</tr>
</tbody>
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		'article_id' => (int) 7522,
		'category_id' => (int) 22,
		'title' => 'Female Labor Force Participation In India',
		'description' => '<div class="border">
<p>This article is based on<a href="https://www.hindustantimes.com/opinion/enhancing-women-s-employment-is-key-to-economic-recovery-101610976913528.html" target="_blank" rel="noopener"><strong> &ldquo;Enhancing women&rsquo;s employment is key to economic recovery&rdquo;</strong> </a>which was published in The Hindustan Times on 19/01/2021. It talks about constraints and solutions regarding declining Female Labor Force Participation in India.</p>
</div>
<p>India continues to struggle to provide its women with equal opportunity. In 2019, before the Covid-19 pandemic, female labor force participation in India was 23.5%, according to ILO estimates.</p>
<p>The pandemic has made this situation worse. It has hit women disproportionately &mdash; because they work in sectors that have been the hardest hit; work more than men do in the informal economy; or because they are the primary caregivers at home.</p>
<p>As the recovery of the Indian economy requires a concerted effort of both government and citizenry, women can become a critical part of the economic recovery. Thus, there is a need to ameliorate long-standing issues that hamper female labor force participation in India.</p>
<h3>Constraints In Female Labor Force Participation</h3>
<ul style="list-style-type: square;">
<li><strong>Stereotyping In Society:</strong> India&rsquo;s societal norms are such that women are expected to take the responsibility of family care and childcare. This stereotype is a critical barrier to women&rsquo;s labor force participation.
<ul style="list-style-type: circle;">
<li>Due to this, women are in constant conflict over-allotment of time for work and life is a war of attrition for them.</li>
</ul>
</li>
<li><strong>Digital Divide:</strong> In India in 2019, internet users were 67% male and 33% female, and this gap is even bigger in rural areas.
<ul style="list-style-type: circle;">
<li>This divide can become a barrier for women to access critical education, health, and financial services, or to achieve success in activities or sectors that are becoming more digitized.</li>
</ul>
</li>
<li><strong>Technological Disruption:</strong> Women hold most of the administrative and data-processing roles that artificial intelligence and other technologies threaten to usurp.
<ul style="list-style-type: circle;">
<li>As routine jobs become automated, the pressure on women will intensify and they will experience higher unemployment rates.</li>
</ul>
</li>
<li><strong>Lack of Gender-Related Data:</strong> Globally, major gaps in gendered data and the lack of trend data make it hard to monitor progress.
<ul style="list-style-type: circle;">
<li>In India, too, significant gaps in data on the girl child prevent a systematic longitudinal assessment of the lives of girls.</li>
</ul>
</li>
<li><strong>Impact of Covid-19:</strong> Owing to Covid-19, global female employment is 19% more at risk than male employment (ILO estimates).
<ul style="list-style-type: circle;">
<li>For India, several estimates show that, compared to men, women were 9.5% less likely to be employed in August 2020 compared to August 2019.</li>
<li>In the <a href="/daily-updates/daily-news-analysis/global-gender-gap-index-2020-wef" target="_blank" rel="noopener"><strong>World Economic Forum&rsquo;s Global Gender Gap Index</strong></a> (which measures gaps that exist in the economic participation of women), India slipped to 112th place this year, simply because over 70 lakh Indian women have dropped out of work.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<p>As a report by McKinsey Global Institute suggests that if women participated in the Indian economy at the level men do, annual GDP could be increased by 60% above its projected GDP by 2025. Given this, governments at all levels, civil society, and citizenry should take adequate measures to ensure gender equality.</p>
<ul style="list-style-type: square;">
<li><strong>Full-Time Child Care:</strong> The Integrated Child Development Scheme provides some support, but it is not a full-time child care solution.
<ul style="list-style-type: circle;">
<li>However, the &ldquo;Sangini Centres&rdquo; of Self Employed Women&rsquo;s Association (SEWA) provide full-day child care for 0-5-year-olds, including nutrition, health, and child care.</li>
<li>Thus, similar centers should be significantly expanded.</li>
</ul>
</li>
<li><strong>Bridging Digital Divide:</strong> To address this, partnerships between the public and private sectors will be most effective.
<ul style="list-style-type: circle;">
<li>Actions will need to address affordability of phones and computers, female digital literacy and its social context, and inadequate technical content dedicated to women and girls.</li>
</ul>
</li>
<li><strong>Flexible Working:</strong> The pandemic-induced remote working scenario has taught the corporate world that seamless work-life integration is possible not only for women but for male professionals as well.
<ul style="list-style-type: circle;">
<li>Even as India Industries adds more diversity and inclusion initiatives such as increased maternity leave, mandatory paternity leave, the right to and choice of work for women depends greatly on organizations continuing the practice of flexible working.</li>
</ul>
</li>
<li><strong>Fiscal Incentives:</strong> Women have a higher elasticity of labor supply than men (their labor supply is more responsive to their take-home wages) &mdash; lower income taxes for women can incentivize their participation.</li>
<li><strong>Encouraging Women Entrepreneurship:</strong> Creating job opportunities is the need of the hour. However, encouraging more women to become entrepreneurs will provide a long-term solution.
<ul style="list-style-type: circle;">
<li>By creating jobs, fuelling innovation, and furthering investment in health and education, entrepreneurship among women could transform India&rsquo;s economy and society.</li>
</ul>
</li>
<li><strong>Prioritizing Gender Statistics:</strong> A UN Women Initiative called &ldquo;Making Every Woman and Girl Count&rdquo; was launched in 2016 to help prioritize gender data, ensure regular production of quality and comparable gender statistics, and ensure that data are accessible and used to inform policy.
<ul style="list-style-type: circle;">
<li>There is a need to incorporate such an initiative in India as well.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>World Bank, noted that &ldquo;no country can develop and achieve its full potential if half of its population is locked in non-remunerative, less productive and non-economic activities.&rdquo;</p>
<p>Therefore, in a country where young women&rsquo;s education is now at par with men&rsquo;s, ignoring that half of the population isn&rsquo;t participating equally in the economy means we are missing out on innovation, entrepreneurship, and productivity gains.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fffff7;">
<p><span style="color: #333399;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Since the woman&rsquo;s economic engagement is related to her own and her family&rsquo;s well-being, the continuing decline in women&rsquo;s labor force participation is a cause for concern, and both affect and reflects these worrying gender gaps. Discuss.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/JfmRv-Nj3cM" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://economictimes.indiatimes.com/blogs/et-editorials/dont-put-all-eggs-in-manufacturing-basket/" target="_blank" rel="noopener"><strong>&ldquo;Don&rsquo;t put all eggs in manufacturing basket&rdquo;</strong></a> published in The Economic Times on January 20<sup>th</sup>, 2020. Now watch this on our Youtube channel.</p>',
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	(int) 9 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7512,
		'category_id' => (int) 22,
		'title' => 'Tourism Sector In India',
		'description' => '<div class="border">
<p>This article is based on <a href="https://timesofindia.indiatimes.com/blogs/toi-edit-page/in-our-past-lies-our-future-indian-tourism-hasnt-marketed-the-precious-assets-embedded-in-our-heritage-to-full-potential/" target="_blank" rel="noopener"><strong>&ldquo;In our past lies our future&hellip; Indian tourism hasn&rsquo;t marketed the precious assets embedded in our heritage to full potential&rdquo;</strong></a> which was published in The Times of India on 19/01/2021. It talks about the constraints &amp; opportunities associated with the tourism sector in India.</p>
</div>
<p>The outbreak of the Covid-19 pandemic last year has brought almost all areas of the business to a standstill. Arguably, the worst affected has been the<a href="/to-the-points/paper3/tourism-in-india" target="_blank" rel="noopener"><strong> tourism and hospitality industry</strong></a>, which had to bear the brunt of lockdowns and social distancing.</p>
<p>According to the <a href="/daily-updates/daily-news-analysis/world-tourism-day#:~:text=reaching%20these%20goals.-,United%20Nations%20World%20Tourism%20Organisation,with%20headquarters%20at%20Madrid%2C%20Spain." target="_blank" rel="noopener"><strong>UN World Tourism Organization (UNWTO)</strong></a>, this is by far the worst crisis international tourism has faced since records began in 1950.</p>
<p>Now as the vaccines are available, life will return back to normalcy. Given this, India should seek to actively support the tourism sector, as the sector contributes an estimated 10% to the Indian economy and is our biggest ambassador to the world.</p>
<p>Further, India has inherent competitive advantages as it offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, eco-tourism, film, rural and religious tourism. This competitive advantage will help India become a tourism hub in the world.</p>
<h3>Constraints in Tourism Sector</h3>
<ul style="list-style-type: square;">
<li><strong>Infrastructure and Connectivity:</strong> Deficiencies in infrastructure and inadequate connectivity hamper tourist visits to some heritage sites.<br />
<ul style="list-style-type: circle;">
<li>Also, India has various tourist destinations but few circuits or segments such as the Golden Triangle (Delhi-Agra-Jaipur).</li>
</ul>
</li>
<li><strong>Promotion and Marketing:</strong> Although it has been increasing, online marketing/branding remains limited and campaigns are not coordinated. <br />
<ul style="list-style-type: circle;">
<li>Tourist information centers are poorly managed, making it difficult for domestic and foreign tourists to access information with ease.</li>
</ul>
</li>
<li><strong>Lack of Skills:</strong> The number of adequately trained individuals for the tourism and hospitality sector is a key challenge to giving visitors a world-class experience. <br />
<ul style="list-style-type: circle;">
<li>A limited number of multilingual trained guides, and the limited local awareness and understanding of the benefits and responsibilities associated with tourist growth act as constraints on the sector&rsquo;s growth.</li>
</ul>
</li>
<li><strong>Underutilization of Tourism Potential:</strong> Out of 140 countries, India ranked 8<sup>th</sup> on cultural resources and business travel, 13<sup>th</sup> on price competitiveness, and 14<sup>th</sup> on natural resources in <a href="/daily-updates/daily-news-analysis/travel-and-tourism-competitiveness-index" target="_blank" rel="noopener"><strong>World Economic Forum&rsquo;s Travel &amp; Tourism Competitiveness Report 2019.</strong></a><br />
<ul style="list-style-type: circle;">
<li>Despite these superb rankings, India&rsquo;s overall tourism competitiveness ranking at 34 reveals that India has not monetized or marketed the precious assets embedded in its heritage to their full potential, as other countries do.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>One India One Tourism&rsquo; Approach:</strong> Tourism encompasses multiple ministries and takes place in and within states. <br />
<ul style="list-style-type: circle;">
<li>It thus requires a National Tourism Council, an empowered legislative body that will enable fast-tracking of Centre-state level tourism matters and will create a &lsquo;One India One Tourism&rsquo; approach.</li>
</ul>
</li>
<li><strong>Tourism Should be Declared as Infrastructure:</strong> Tourism infrastructure projects, viz., hotels, resorts, equipment, parks, etc., having a project cost more than Rs. 1 crore should be notified as &lsquo;infrastructure&rsquo; to enable promoters to avail loans on a priority basis.</li>
<li><strong>Skill Development:</strong> There is a need to connect local communities to tourism by encouraging them to set up small enterprises to supply the tourism industry.<br />
<ul style="list-style-type: circle;">
<li>Employment opportunities can be expanded by ensuring that investors and operators in the organized sector are encouraged to hire staff locally</li>
</ul>
</li>
<li><strong>Conservation of Heritage Sites:</strong> Conservation and development of all heritage sites should be undertaken and completed through either government funding or through NGOs/<a href="/daily-updates/daily-news-analysis/corporate-social-responsibility-csr-expenditure" target="_blank" rel="noopener"><strong>Corporate Social Responsibility</strong></a> (CSR) activities.<br />
<ul style="list-style-type: circle;">
<li>The Ministry of Tourism&rsquo;s <a href="/to-the-points/paper3/tourism-in-india" target="_blank" rel="noopener"><strong>Swadesh Darshan and National Mission on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD)</strong> </a>schemes are already undertaking the development or maintenance of heritage sites.</li>
</ul>
</li>
<li><strong>Promoting Ease of Tourism:</strong> To truly ensure a seamless tourist transportation experience we need to standardize all interstate road taxes and make them payable at a single point which will facilitate the ease of doing business.</li>
<li><strong>Incredible India 2.0:</strong> Given the diversity of tourism in India, there is a need to actively promote and market niche tourism like Buddhist circuit, Swadesh Darshan, Adventure tourism in Andaman and Nicobar Islands. <br />
<ul style="list-style-type: circle;">
<li>In this context, the Government of India can launch the Incredible India 2.0 campaign, which will promote tourism in 100 Smart &amp; Swachh Tourist Destination Sites.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>Given opportunities in the Tourism sector, it can act as an engine to revive growth and showcases brand India to the world.</p>
<p><a href="http://www.drishtiias.com/images/uploads/1611146393_image4.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1611146393_image4.png" style="display: block; margin-left: auto; margin-right: auto;" width="700" caption="false" /></a></p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fcfcf5;">
<p><span style="color: #333399;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Given opportunities in the Tourism sector, it can act as an engine to revive growth and showcases brand India to the world. Discuss.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/UuEi-Y_YBsQ" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <strong><a href="/admin/articles/edit/&lt;iframe%20width=&quot;560&quot; height=&quot;315&quot; src=&quot;https:/www.youtube.com/embed/UuEi-Y_YBsQ&quot; frameborder=&quot;0&quot; allow=&quot;accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture&quot; allowfullscreen&gt;&lt;/iframe&gt;" target="_blank" rel="noopener">&ldquo;Whatever it takes: On govt. powers to combat vaccine hesitancy&rdquo;</a></strong> published in The Hindu on January 19<sup>th</sup>, 2020. Now watch this on our Youtube channel.</p>',
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		'article_id' => (int) 7504,
		'category_id' => (int) 21,
		'title' => 'Shadow Entrepreneurs',
		'description' => '<h3>Why in News</h3>
<p>There has been a<strong> global rise of shadow entrepreneurship,</strong> in various sectors such as<strong> education</strong> (certificates), <strong>finance</strong> (for easy loans), <strong>the betting economy</strong> (online games) and <strong>healthcare</strong> (e-pharmacies).</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Shadow entrepreneurs</strong> are individuals <strong>who manage a business that sells legitimate goods and services</strong> but they <strong>do not register their businesses.</strong></li>
<li>This means that they <strong>do not pay tax,</strong> operating in a shadow economy where <strong>business activities are performed outside the reach of government authorities.</strong></li>
<li>Types of businesses include <strong>unlicensed taxicab services, roadside food stalls and small landscaping operations.</strong></li>
<li>In a study of 68 countries, the<strong> Imperial College Business School</strong> found that after Indonesia, India has the<strong> second highest rate of shadow entrepreneurs.</strong></li>
</ul>
</li>
<li><strong>Causes for Rise in Shadow entrepreneurs:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Taxation &amp; Enforcement: High tax rates</strong> accompanied by <strong>loose enforcement </strong>induces<strong> tax avoidance, discourage investment in formal businesses,</strong> and drive entrepreneurial activity toward the informal sector.</li>
<li><strong>Impact of Covid-19:</strong> Shadow entrepreneurs, offering<strong> technology-mediated services,</strong> bring complementary services that traditional service providers may be constrained to offer or consumers <strong>might not be able to access</strong> due to lockdown constraints.</li>
<li><strong>Technological Advancements:</strong> Shadow entrepreneurship is also promoted through technology-enabled new markets and also entry of new and tech savvy consumers.</li>
</ul>
</li>
<li><strong>Benefits:</strong> <br />
<ul style="list-style-type: circle;">
<li>Increase in employment: Most of Informal sector jobs come under shadow entrepreneurship.</li>
<li>Driver of economic development</li>
<li>Reduction in Poverty</li>
<li>Removes pressure on agriculture by providing non agricultural jobs.</li>
<li>Diversified options for consumers</li>
</ul>
</li>
<li><strong>Challenges of Shadow Entrepreneurs:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Decrease Competitiveness:</strong> <br />
<ul style="list-style-type: disc;">
<li>Small firms will get acquired by large firms. First movers in the space with deep pockets could generate irrationally high valuations.</li>
</ul>
</li>
<li><strong>Dubious &amp; illegal:</strong><br />
<ul style="list-style-type: disc;">
<li>Recent events related to app-based loan providers who charge very high interest rates and dubious methods for recovery.</li>
</ul>
</li>
<li><strong>Economic Loss:</strong> <br />
<ul style="list-style-type: disc;">
<li>Loss of revenue as these businesses are not registered with the government.</li>
</ul>
</li>
<li><strong>Corruption:</strong> <br />
<ul style="list-style-type: disc;">
<li>They are beyond the reach of law making them vulnerable to corrupt officials.</li>
</ul>
</li>
<li><strong>Asset Size:</strong> <br />
<ul style="list-style-type: disc;">
<li>Informal entrepreneurs tend to invest in their businesses much less intensively than the formal ones, which implies that formality is positively correlated with asset size.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Suggestions:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Formalisation of Economy:</strong> Where proper economic and political frameworks are in place, individuals are more likely to become &lsquo;formal&rsquo; entrepreneurs and register their business, because doing so enables them to take advantage of laws and regulations that protect their company.</li>
<li><strong>Monitoring:</strong> Strong monitoring of quality would be essential. This needs to be complemented with<strong> non-compliance being punishable with a jail term,</strong> clamping down on services and related strict consequences.</li>
<li><strong>Reward Compliance:</strong> Those shadow firms that comply should be welcome to join the dominant mode of service delivery with non-shadow firms.</li>
<li><strong>Coordination among Agencies:</strong> There also needs to be better coordination of <strong>activities between authorities of governments</strong> (for example the Ministry of Corporate Affairs in regulating shadow entrepreneurship and government departments in healthcare, education or finance).</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/opinion/op-ed/rise-of-shadow-entrepreneurship/article33594643.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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		'article_id' => (int) 7317,
		'category_id' => (int) 21,
		'title' => 'Main Bhi Digital Drive for Street Vendors',
		'description' => '<h3>Why in News</h3>
<p>The<strong> Ministry of Housing and Urban Affairs (MoHUA)</strong> is going to launch <strong>&lsquo;Main Bhi Digital (me too digital)&rsquo;</strong> drive for the street vendors to enable them to <strong>accept and make payments digitally.</strong></p>
<ul style="list-style-type: square;">
<li>The drive has been encouraged by the success of the <a href="/daily-updates/daily-news-analysis/pm-svanidhi-micro-credit-scheme-for-street-vendors" target="_blank" rel="noopener"><strong>Prime Minister Street Vendor&rsquo;s AtmaNirbhar Nidhi (PMSVANidhi) scheme</strong></a>, launched in the wake of the <strong><a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener">Covid-19</a></strong><a href="/printpdf/21-days-lockdown" target="_blank" rel="noopener">&nbsp;lockdown</a>, to provide vendors microcredit.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Main Bhi Digital Drive:</strong><br />
<ul style="list-style-type: circle;">
<li>As part of the new drive, between <strong>4<sup>th</sup> January to 22<sup>nd</sup> January 2021,</strong> over <strong>10 lakh street vendors</strong> across the country who have availed of the <strong>Rs. 10,000 loan</strong> will be <strong>trained in using <a href="/pdf/1597577588-indian-digital-payment-system-outside-india.pdf" target="_blank" rel="noopener">digital payments.</a></strong></li>
<li>The vendors would be able to not just <strong>receive payments digitally</strong> but also <strong>pay for material they procure from sellers using unique <a href="/printpdf/quick-response-code-for-buildings" target="_blank" rel="noopener">QR codes</a>.</strong></li>
<li>The <strong>mobile phones</strong> of the vendors will be<strong> equipped with the software needed for the transactions,</strong> and training provided to them on safe and secure payments.</li>
</ul>
</li>
<li><strong>PMSVANidhi Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>It is a scheme of the <strong>MoHUA</strong> launched in <strong>June 2020</strong> which entitles the street vendors to <strong>Rs. 10,000 interest-free loan</strong> as working capital to restart their businesses.</li>
<li>Data shows that<strong> only 20% of the beneficiaries are digitally enabled.</strong></li>
</ul>
</li>
<li><strong>Street Vendors in India:</strong><br />
<ul style="list-style-type: circle;">
<li>Anyone who <strong>doesn&rsquo;t have a permanent shop is considered a street vendor.</strong><br />
<ul style="list-style-type: disc;">
<li>According to government estimates, <strong>street-vending accounts for 14% of the total (non-agricultural) urban informal employment in the country.</strong></li>
</ul>
</li>
<li>There are an estimated <strong>50-60 lakh street vendors in India,</strong> with the largest concentrations in the cities of Delhi, Mumbai, Kolkata, and Ahmedabad.</li>
<li><strong>Issues:</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Licence caps </strong>are<strong> unrealistic</strong> in most cities, for example, Mumbai has a ceiling of around 15,000 licences as against an estimated 2.5 lakh vendors. <br />
<ul style="list-style-type: disc;">
<li>This means most <strong>vendors hawk their goods illegally,</strong> which makes them <strong>vulnerable to exploitation and extortion by local police and municipal authorities.</strong></li>
</ul>
</li>
<li>Often, local bodies conduct <strong>eviction drives</strong> to clear the pavements of encroachers, and confiscate their goods. <strong>Fines for recovery are heavy.</strong></li>
</ul>
</li>
<li><strong>Organizations for Street Vendors:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>National Association of Street Vendors of India (NASVI):</strong> It is a <strong>membership based organization</strong> of 1,024 street vendors organizations representing 10,00,000 street vendors from almost all parts of India.</li>
<li><strong>National Hawker Federation (NHF):</strong> It is an association of street vendors <strong>across 28 States</strong> in the country, with <strong>1,188 Unions,</strong> including<strong> 11 Central Trade Unions</strong> and over <strong>20 International Trade Unions</strong> abroad.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Initiatives for the Street Vendors:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 :</strong> It was enacted to regulate street vendors in public areas and protect their rights.<br />
<ul style="list-style-type: disc;">
<li>The Act defines a <strong>&ldquo;street vendor&rdquo;</strong> as a <strong>person engaged in vending of articles</strong> of everyday use or <strong>offering services to the general public,</strong> in <strong>any public place or private area,</strong> from a <strong>temporary built up structure or by moving from place to place&rdquo;.</strong></li>
</ul>
</li>
<li>The government has also launched its first-ever official <strong>socio-economic survey of vendors,</strong> to bring street vendors under schemes such as :<br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/woes-of-migrants-amid-covid-19" target="_blank" rel="noopener"><strong>Pradhan Mantri Jeevan Jyoti Bima Yojana.</strong></a></li>
<li><a href="/daily-updates/daily-news-editorials/financial-inclusion-4" target="_blank" rel="noopener"><strong>Pradhan Mantri Suraksha Bima Yojana.</strong></a></li>
<li><strong>Jan-Dhan Yojana.</strong></li>
<li><a href="/daily-news-analysis/social-audit-to-track-construction-workers-benefits#:~:text=Building%20and%20Other%20Construction%20Worker%20Act%2C%201996&amp;text=The%20Act%20provides%20for%20the,be%20used%20for%20availing%20benefits." target="_blank" rel="noopener"><strong>Building and Other Construction Workers Act 1996.</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/pradhan-mantri-shram-yogi-maan-dhan-pm-sym" target="_blank" rel="noopener"><strong>Pradhan Mantri Shram Yogi Maandhan Yojana.</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/pradhan-mantri-matru-vandana-yojana" target="_blank" rel="noopener"><strong>Pradhan Mantri Matru Vandana Yojana.</strong></a></li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>Despite multiple schemes running for the street vendors, there are various <strong>gaps</strong> in implementation, identification, awareness and accessibility of various schemes which should be plugged in a timely manner.</li>
<li><strong>Benefits</strong> like <strong>maternity allowances, accident relief, natural death compensation, education support</strong> for children for higher studies, <strong>pension</strong> during any crisis should be provided to them.</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/zero-coupon-bonds-innovative-govt-tool-to-fund-psbs-keep-deficit-in-check-7122716/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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		'article_id' => (int) 7210,
		'category_id' => (int) 21,
		'title' => 'Database of Migrants',
		'description' => '<p>The Government has decided to create a <strong>database of migrant workers,</strong> including workers in the <a href="/daily-updates/daily-news-analysis/1-6-billion-risk-losing-jobs-ilo" target="_blank" rel="noopener"><strong>informal economy.</strong></a></p>
<ul style="list-style-type: square;">
<li><a href="/to-the-points/paper1/human-migration-in-india" target="_blank" rel="noopener"><strong>Migration</strong></a> is the movement of people away from their usual place of residence, across either<strong> internal (within country) or international (across countries)</strong> borders. The latest government data on migration comes from the<strong> 2011 <a href="/daily-updates/daily-news-analysis/census-2021" target="_blank" rel="noopener">Census.</a></strong></li>
<li>As per the Census, India had <strong>45.6 crore migrants in 2011</strong> (38% of the population) compared to <strong>31.5 crore migrants in 2001</strong> (31% of the population).</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>Inter-State Migrant Workmen Act, 1979,</strong> required all establishments who hired inter-state migrants to be<strong> registered,</strong> as well as all <strong>contractors who recruited</strong> these workers to be <strong>licensed.</strong></li>
<li>Proper implementation of this law would have ensured<strong> information on inter-state migrants</strong> to aid the state machinery in its relief efforts.<br />
<ul style="list-style-type: disc;">
<li>However, no such <strong>detailed records were maintained,</strong> and information on the number of migrants was unavailable to both <strong>central and state governments.</strong></li>
</ul>
</li>
<li>A comprehensive database for migrant and other unorganised sector workers is seen as <strong>necessary in the wake of the<a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener"> Covid-19 pandemic.</a></strong></li>
</ul>
</li>
<li><strong>Recent Government Initiatives to help returning migrants find livelihood:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>The Ministry of Skill Development and Entrepreneurship</strong> (MSDE) has launched <a href="/daily-updates/daily-news-analysis/aseem-portal" target="_blank" rel="noopener"><strong>&lsquo;Atma Nirbhar Skilled Employee Employer Mapping</strong></a> (ASEEM)&rsquo; portal to help skilled people find sustainable livelihood opportunities.<br />
<ul style="list-style-type: disc;">
<li><strong>Database of labour migrants</strong> in Indian states and overseas citizens, who returned to India under the<strong> Vande Bharat Mission</strong> and filled<strong> SWADES Skill Card,</strong> has been <strong>integrated</strong> with the <strong>ASEEM portal.</strong></li>
</ul>
</li>
<li>The <strong>National Disaster Management Authority (NDMA)</strong> has developed an online dashboard called <strong><a href="/daily-updates/daily-news-analysis/national-migrant-information-system" target="_blank" rel="noopener">&lsquo;National Migrant Information System</a> (NMIS)&rsquo;</strong><br />
<ul style="list-style-type: disc;">
<li>The online portal (NMIS) would maintain a<strong> central repository of migrant workers</strong> and help in speedy inter-state communication to facilitate the smooth movement of migrant workers to their native places.</li>
</ul>
</li>
<li>The Maharashtra Government has launched a portal named <a href="/daily-updates/daily-news-analysis/mahajobs-portal-maharashtra" target="_blank" rel="noopener"><strong>&lsquo;Mahajobs&rsquo;</strong> </a><strong>for job seekers and employers,</strong> owing to the economic situation caused by Covid-19 pandemic.</li>
<li><strong>Atma Nirbhar Uttar Pradesh Rozgar Abhiyan:</strong><br />
<ul style="list-style-type: disc;">
<li>The scheme seeks to<strong> promote local entrepreneurship and create partnership</strong> with industrial associations to provide <strong>employment opportunities to 1.25 crore migrant workers</strong> who lost their jobs during the <strong>Covid-19 pandemic.</strong> The state government has already mapped the skill of the workers so that they can be provided employment as per their expertise.</li>
<li>The<strong> migrant commission announced by the Uttar Pradesh government will map skills of workers</strong> who have returned to the state, providing data to employment exchanges.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Causes for Migration:</strong><br />
<ul style="list-style-type: circle;">
<li>Migration is a global phenomenon caused not only by economic factors but many other factors like social, political, cultural, environmental, health, education are included under the broader classification of Push and Pull factors of migration:<a href="http://www.drishtiias.com/images/uploads/1608020109_image2.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1608020109_image2.png" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></li>
<li><strong>Push Factor:</strong> Push factors are those that compel a person, due to different reasons, to leave a place of origin (out-migration) and migrate to some other place.</li>
<li><strong>Pull Factor:</strong> Pull factors indicate the factors which attract migrants (in-migration) to an area (destination).</li>
</ul>
</li>
<li><strong>Patterns of Migration:</strong><br />
<ul style="list-style-type: circle;">
<li>Internal migrant flows can be<strong> classified on the basis of origin and destination:</strong><br />
<ul style="list-style-type: disc;">
<li>Rural-rural, rural-urban, urban-rural and urban-urban.</li>
</ul>
</li>
<li>Another way to classify migration is: <br />
<ul style="list-style-type: disc;">
<li>Intra-state, and inter-state.</li>
</ul>
</li>
</ul>
</li>
<li>As of 2011,<strong> Uttar Pradesh and Bihar</strong> were the largest <strong>source</strong> of inter-state migrants while <strong>Maharashtra and Delhi</strong> were the largest receiver states. Around 83 lakh residents of Uttar Pradesh and 63 lakh residents of Bihar had moved either temporarily or permanently to other states.</li>
<li><strong>Plan for the Database:</strong><br />
<ul style="list-style-type: circle;">
<li>The plan aims to get data from existing databases of government schemes such as <a href="/daily-updates/daily-news-editorials/mgnrega-and-migrant-crisis" target="_blank" rel="noopener"><strong>MGNREGA</strong></a>, and the <a href="/daily-updates/daily-news-analysis/24-states-under-one-nation-one-ration-card" target="_blank" rel="noopener"><strong>one nation-one ration card</strong></a> to create a <strong>unique registration</strong> of migrant workers.</li>
<li>Details of those working in unorganised sectors not covered by such schemes, are likely to be<strong> added separately. </strong></li>
<li><strong>Aadhaar platform</strong> would be used to address the problem of duplicity and ghost cards.</li>
</ul>
</li>
<li><strong>Issues:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>No collection of data of intra-state migrants:</strong><br />
<ul style="list-style-type: disc;">
<li>The scope of the database needs to be expanded to include both sets of migrants.</li>
</ul>
</li>
<li><strong>Discrepancy in definition of employed:</strong><br />
<ul style="list-style-type: disc;">
<li>The extent of migration in the country depends on the definition of employed. For example, the definitions used by the <strong>National Sample Survey and the Census</strong> are different.</li>
<li>A comprehensive definition needs to be worked out for employment.</li>
</ul>
</li>
<li><strong>Technological Constraints:</strong><br />
<ul style="list-style-type: disc;">
<li>Merging the <strong>existing databases</strong> at the state level may be problematic as the <strong>softwares and structures of data storage</strong> may be different.<br />
<ul style="list-style-type: disc;">
<li>Aadhaar-linked databases may have security concerns.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Lack of clarity over registration of workers:</strong><br />
<ul style="list-style-type: disc;">
<li>No<strong> procedure of registration</strong> yet mentioned, whether the process to register will be voluntary or by a government agency.</li>
<li><strong>Track over migration flows</strong> etc has not been discussed.</li>
</ul>
</li>
<li><strong>Portability Issue:</strong><br />
<ul style="list-style-type: disc;">
<li>Governments will also have to examine the issue of portability of benefits across states.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Inter-State Migrant Workmen Act, 1979</strong></p>
<ul style="list-style-type: square;">
<li>The Act seeks to regulate the employment of inter-State migrants and their conditions of service.</li>
<li>It is applicable to every establishment that employs <strong>five or more migrant workmen from other States;</strong> or if it had <strong>employed five or more such workmen</strong> on any day in the <strong>preceding 12 months.</strong></li>
<li>It is also <strong>applicable to contractors</strong> who employed a similar number of inter-State workmen.</li>
<li>It envisages a system of <strong>registration of such establishments.</strong> The principal employer is prohibited from employing inter-State workmen <strong>without a certificate of registration</strong> from the relevant authority.</li>
<li>The law also lays down that <strong>every contractor who recruits workmen</strong> from one State for deployment in another State<strong> should obtain a licence to do so.</strong></li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/opinion/editorials/covid-19-lockdown-migrant-workers-bihar-mgnrega-7103590/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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		'article_id' => (int) 6985,
		'category_id' => (int) 22,
		'title' => 'Technological Revolution, Covid-19 & Labour Market',
		'description' => '<div class="border">
<p>This article is based on<a href="https://www.epw.in/journal/2020/44/commentary/future-work-post-covid-19-world.html" target="_blank" rel="noopener"><strong> &ldquo;The Future of Work in the Post-COVID-19 World&rdquo;</strong></a> which was published in The Economic &amp; Political Weekly on 31/10/2020. It talks about the impact of the fourth industrial revolution and the pandemic on the labour market.</p>
</div>
<p>The emergence of the ongoing <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid-19 pandemic</strong></a> has caused dra&shy;stic impacts on almost every aspect of human life. One of the large uncertainties is related to the economic impact of this pandemic.</p>
<p>In the economic arena, the impact on the global labour market will undergo many important changes. However, the global labour market was already going through radical changes over the last few decades due to the upcoming <a href="/loksabha-rajyasabha-discussions/in-depth-industrial-revolution-4-0" target="_blank" rel="noopener"><strong>fourth industrial revolution</strong></a> and the pandemic is likely to &shy;increase this rate.</p>
<p>Future prospects of the labour market are unpromising due to the advances and challenges generated by technologies &shy;related to <a href="/loksabha-rajyasabha-discussions/in-depth-artificial-intelligence" target="_blank" rel="noopener"><strong>arti&shy;ficial intelligence (AI)</strong></a>, &shy;machine learning (ML), robotics, and industrial automatisation.</p>
<p>Therefore, the real need right now is to evaluate how the Covid-19 crisis will &shy;affect this ongoing transformation and adequate policy responses.</p>
<h3>Ongoing Changes in Labour Market</h3>
<ul style="list-style-type: square;">
<li>In current times, the role of technology has become self-contradictory. Even if technology has been created to support humankind, there exists an &shy;underlying fear about its impact on the labour market.</li>
<li>Traditio&shy;nally, changes affected only employees in charge of highly repetitive tasks, that is the so-called blue-collar workers.
<ul style="list-style-type: circle;">
<li>However, the recent impact of the fourth industrial revolution is also threatening those that carry out highly skilled tasks, that is, the so-called white-collar workers.</li>
</ul>
</li>
<li>Before the Covid-19 pandemic, the<a href="/important-institutions/drishti-specials-important-institutions-international-institution/international-labour-organization" target="_blank" rel="noopener"><strong> International Labour Organization</strong></a> (ILO) estimated that 1,400 million workers in the world (around 37.5% of the &shy;total workers) worked in vulnerable employment.</li>
</ul>
<h3>Impact of 4<sup>th</sup> Industrial Revolution &amp; Covid-19 on Labour Market</h3>
<ul style="list-style-type: square;">
<li><strong>Process of Automation:</strong> According to ILO, the manufacturing sector employs approximately 1,600 million robots at a global scale, a number with exponential growth in recent years.
<ul style="list-style-type: circle;">
<li>The Covid-19 pandemic will quite likely ensure that companies will strive to organise supply chains that are safe and free from viruses.</li>
<li>For this, deployments of swarm robots, that is &shy;robots linked to each other for coordinated action, present important functional benefits. Therefore, in some way, it is quite likely that Covid-19 will accelerate the process of automation.</li>
</ul>
</li>
<li><strong>Social Polarisation:</strong> The pandemic is also increasing social inequalities due to the disparate impact of the virus on different classes.
<ul style="list-style-type: circle;">
<li>However, before the pandemic, the most vulnerable jobs and with more risk to be automated were precisely the low-&shy;income ones.</li>
<li>The virus has a social &shy;impact that is quite undemocratic, which besides the ongoing robotisation and automation processes will drive up the &shy;levels of social polarisation.</li>
</ul>
</li>
<li><strong>Change in Work Culture:</strong> The ongoing technological revolution and the impact of the novel coronavirus might radically change the work conditions.
<ul style="list-style-type: circle;">
<li>With this new wave of forced remote working, some tech companies in Silicon Valley (such as Twitter, Square, or Facebook) have already decided to shift to <strong>permanent working from home</strong> even after the pandemic.</li>
<li>These changes will have a vast impact on the urban economies of the regions where these companies are located by affecting &shy;aspects, such as real estate, transpor&shy;tation, leisure, and social diversity, among others.</li>
</ul>
</li>
<li><strong>Post-Labour Society:</strong> Some theorists predict a post-work scenario where robots would mostly replace human workforces. Among the consequences, it would mean the end of the traditional labour structure, which will require us to redefine the term work itself.
<ul style="list-style-type: circle;">
<li>This can lead to the emergence of a massive and new unworking class.</li>
<li>In addition, with the pace of technological shifts, the skills required of employees will prob&shy;ably change faster over time, creating a group of people whose skills get constantly outdated.</li>
</ul>
</li>
<li><strong>Change in Society:</strong> Beyond the real impact of AI and robo&shy;tics on the labour market, strong chan&shy;ges are expected to disrupt societies.
<ul style="list-style-type: circle;">
<li>Without employment providing a structure in the people&rsquo;s lives and with technology replacing many human activities, the societies are likely to shift towards more individualistic entities with less human interaction.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Positive Trends:</strong> There are many studies which signify that the fourth Industrial revolution would create as many jobs as it eradicated, showing a slightly positive trend.
<ul style="list-style-type: circle;">
<li>These studies indicate that the healthcare and educational sectors will have a growing job demand, while the manufacturing and transport sectors will suffer the largest &shy;losses of jobs.</li>
<li>Further, technology and automation could lead to a fairer economic model with lower prices, greater social awareness. Thus, there is a need for re-skilling of the workforce.</li>
</ul>
</li>
<li><strong>Necessity of Inclusive Development:</strong> Some governments are trying to &shy;develop strategies to face the very negative scenarios that might emerge.
<ul style="list-style-type: circle;">
<li>In this sense, one of such countermeasures is the<a href="/daily-updates/daily-news-analysis/universal-basic-income" target="_blank" rel="noopener"><strong> Universal Basic Income (UBI).</strong></a></li>
<li>However, developing countries like India need to develop alternative strategies. This is because providing UBI in the world's second-largest populous country would not be feasible, especially in the near future.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>It is expected that the ongoing technological revolution, besides the upcoming economic crisis due to the coronavirus, might reduce the level of regulated &shy;employment. In this scenario, the relationship between employer and employee would be reduced to a minimum.</p>
<p>The supporters of this policy argue that it will boost the labour market, while critics argue that the employee will be completely unprotected.</p>
<p><a href="http://www.drishtiias.com/images/uploads/1605184704_image4.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1605184704_image4.jpg" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="737" height="242" /></a></p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #f5faff;">
<p><span style="color: #333399;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Critically analyse the impact of the fourth industrial revolution and the Covid-19 pandemic on the labour market.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/scVWS-a-Qjg" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://www.thehindu.com/opinion/editorial/road-bumps-the-hindu-editorial-on-fifteenth-finance-commission-report/article33069233.ece" target="_blank" rel="noopener"><strong>&ldquo;Road bumps: On Fifteenth Finance Commission report&rdquo;</strong></a> which was published in The Hindu on November 11<sup>th</sup>, 2020. Now watch this on our Youtube channel.</p>',
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		'article_id' => (int) 6982,
		'category_id' => (int) 21,
		'title' => 'PLI Scheme for Ten More Sectors',
		'description' => '<h3>Why in News</h3>
<p>The Union Cabinet has given its approval to introduce the <strong>Production-Linked Incentive (PLI) Scheme in 10 more sectors</strong> for enhancing India&rsquo;s manufacturing capabilities and exports <strong><a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener">(Atmanirbhar Bharat)</a>.</strong></p>
<ul style="list-style-type: square;">
<li>Earlier, the government<strong> had announced a <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener">production linked incentive</a> or PLI scheme for medical devices, mobile phones and specified active pharmaceutical ingredients,</strong> with a proposed outlay of Rs. 51,311 crore.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>A scheme that aims to give companies <strong>incentives on incremental</strong> sales from products manufactured in domestic units.</li>
<li>The scheme invites foreign companies to set units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1605176667_image1.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1605176667_image1.png" style="display: block; margin-left: auto; margin-right: auto;" width="350" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Expansion of PLI Scheme to Ten More Sectors:</strong><br />
<ul style="list-style-type: circle;">
<li>The ten sectors include <a href="/to-the-points/paper3/food-processing-in-india" target="_blank" rel="noopener"><strong>food processing</strong></a>, <a href="/to-the-points/paper3/telecom-sector-issues-and-challenges" target="_blank" rel="noopener"><strong>telecom</strong></a>, <a href="/daily-updates/daily-news-analysis/electronics-manufacturing-in-india" target="_blank" rel="noopener"><strong>electronics</strong></a>, <a href="/daily-updates/daily-news-editorials/textile-sector-and-atmanirbharta" target="_blank" rel="noopener"><strong>textiles</strong></a>, <strong>specialty steel, automobiles and auto components, solar photo-voltaic modules and white goods such as air conditioners and LEDs.</strong></li>
<li>The sectors had been identified on the basis of their potential to create jobs and make India self-reliant.</li>
<li>The PLI scheme for these ten sectors will be operational for<strong> five years</strong> with a <strong>total estimated outlay of Rs 1.45 lakh crore.</strong><br />
<ul style="list-style-type: disc;">
<li>The PLI scheme will be<strong> implemented by</strong> the concerned ministries/departments.</li>
<li>Savings from one PLI scheme of an approved sector can be utilized to fund another sector.</li>
</ul>
</li>
<li>The scheme for these sectors will be <strong>in addition to</strong> the PLI schemes for <strong>mobile phones and allied equipment manufacturing, pharmaceutical ingredients and medical devices.</strong> <br />
<ul style="list-style-type: disc;">
<li>Several <strong>more pharmaceutical products have been brought under the aegis of the PLI scheme,</strong> including complex generics, anti-cancer and diabetic drugs, in-vitro diagnostic devices and special empty capsules.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Benefits:</strong> The PLI scheme across these 10 key specific sectors will make <strong>Indian manufacturers globally competitive,</strong> attract<strong> investment</strong> in the areas of core competency and cutting-edge technology; ensure efficiencies; create <strong>economies of scale;</strong> enhance exports and make India an integral part of the <strong>global supply chain.</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Push to Digital Economy:</strong> <br />
<ul style="list-style-type: disc;">
<li>India is expected to have a <strong>USD 1 trillion digital economy</strong> by 2025. Additionally, the Government's push for <a href="/to-the-points/paper3/Data-Localisation" target="_blank" rel="noopener"><strong>data localization</strong></a>, <a href="/daily-updates/daily-news-editorials/india-must-get-on-the-iot-highway-fast" target="_blank" rel="noopener"><strong>Internet of Things</strong></a>, projects such as <strong>Smart City and Digital India</strong> are expected to increase the demand for electronic products.</li>
</ul>
</li>
<li><strong>Increase Exports:</strong> <br />
<ul style="list-style-type: disc;">
<li>The Indian pharmaceutical industry is the<strong> third largest</strong> in the world by volume and 14<sup>th</sup> largest in terms of value. It contributes<strong> 3.5%</strong> of the <strong>total drugs and medicines exported</strong> globally.</li>
<li>India is the world's<strong> second largest steel producer in the world.</strong> It is a <strong>net exporter of finished steel.</strong> A PLI scheme in <strong>Specialty Steel</strong> will help in enhancing manufacturing capabilities for value added steel leading to increase in total exports.<br />
<ul style="list-style-type: disc;">
<li>Specialty steel is made by adding various elements to iron, to achieve various properties, such as heat resistance, hardness, and corrosion resistance.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Secure Telecom Infrastructure:</strong> <br />
<ul style="list-style-type: disc;">
<li>Telecom equipment forms a<strong> critical and strategic element of building a secured telecom infrastructure</strong> and India aspires to become a major original equipment manufacturer of telecom and networking products.</li>
</ul>
</li>
<li><strong>Doubling Farmers&rsquo; Income:</strong> <br />
<ul style="list-style-type: disc;">
<li>The growth of the processed food industry leads to <strong>better price</strong> for farmers and <strong>reduces high levels of wastage.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>Growth in production and exports of industrial goods will greatly <strong>expose the Indian industry to foreign competition and ideas,</strong> which will help in improving its capabilities to innovate further.</li>
<li>Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable <strong>integration with global supply chains</strong> but also establish backward linkages with the <strong>MSME sector</strong> in the country.</li>
<li>It will lead to overall growth in the economy and<strong> create huge employment</strong> opportunities.</li>
</ul>
<p><a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1671912" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 6941,
		'category_id' => (int) 21,
		'title' => 'Growing Trend of Jobs for Locals',
		'description' => '<h3>Why in News</h3>
<p>Recently,<strong> Haryana</strong> Assembly has passed the <strong>Haryana State Employment of Local Candidates Bill, 2020</strong> to reserve 75% of private-sector jobs in the state for local residents.</p>
<ul style="list-style-type: square;">
<li>It has led to a new <strong>debate on the growing trend of<a href="/daily-updates/daily-news-editorials/jobs-for-locals" target="_blank" rel="noopener"> jobs for locals</a></strong> and the <strong>associated concerns.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Provisions of the Bill:</strong><br />
<ul style="list-style-type: circle;">
<li>Every employer shall <strong>employ 75% of the local candidates</strong> with respect to such posts where the <strong>gross monthly salary or wages are not more than Rs. 50,000 or as notified by the government,</strong> from time to time.</li>
<li>Provided that the local candidates <strong>may be from any district of the State,</strong> but the <strong>employer may, at his option, restrict the employment of local candidates from any district to 10%</strong> of the total number of local candidates.</li>
<li>A designated portal shall be made on which local candidates and the employer will have to register and local candidates shall not be eligible to avail the benefit unless they register themselves on the designated portal.</li>
</ul>
</li>
<li>Once it becomes law, it will <strong>apply to companies, societies, trusts, limited liability partnership firms, partnership firms, etc. located across the state.</strong></li>
<li>It has been criticised for <strong>not being in the best interest of the industries</strong> as it will affect the competitiveness of the industries and will lead to <strong>loss of investments in Haryana.</strong></li>
</ul>
<h3>Jobs For Locals</h3>
<ul style="list-style-type: square;">
<li><strong>Job Reservation for Locals:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Nativism,</strong> the<strong> cry for job protection of locals,</strong> has been<strong> on a rise recently in India.</strong></li>
<li>Various states have taken similar steps with respect to <strong>job reservation for locals</strong> (JRFL) with the<strong> promised reservations ranging from 30% to the more common range of 70-80%.</strong></li>
<li>The move is applicable to both the government and/or the private sector.</li>
</ul>
</li>
<li><strong>Earlier Attempts:</strong><br />
<ul style="list-style-type: circle;">
<li>It has been mooted by several parties (ruling or opposition leaders) in States such as Maharashtra (1968 onwards and 2008), Himachal Pradesh (2004), Odisha (2008), Karnataka (2014, 2016, 2019), Andhra Pradesh (2019), Madhya Pradesh (2019).</li>
<li><strong>However, none of these has been implemented</strong> and has remained only on paper <strong>due to lack of implementation mechanism </strong>and<strong> reluctant attitudes of industries bodies.</strong></li>
</ul>
</li>
<li>The Constitution of India<strong> guarantees freedom of movement and consequently employment within India</strong> through several provisions.<br />
<ul style="list-style-type: circle;">
<li><strong>Article 14</strong> provides for equality before law irrespective of place of birth.</li>
<li><strong>Article 15</strong> guards against discrimination based on place of birth.</li>
<li><strong>Article 16</strong> guarantees no birthplace-based discrimination in public employment.</li>
<li><strong>Article 19</strong> ensures that citizens can move freely throughout the territory of India.</li>
</ul>
</li>
<li><strong>Reasons Behind Such Legislations:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Vote Bank Politics: Inter-state migrant workers</strong> (ISMW) constitute a sizeable &ldquo;under-used or un-used&rdquo; electorate as they <strong>often do not exercise voting rights.</strong> If these workers and potential migrants could be retained through JRFL and provided with jobs, the <strong>parties&rsquo; electoral causes will be served.</strong></li>
<li><strong>Economic Sluggishness:</strong> The native unemployment issue assumes relevance as joblessness has intensified in the context of shrinking government employment.</li>
<li><strong>Increased Incomes and Talent:</strong> JRFL will not only retain talent but also incomes which otherwise will go to &ldquo;other regions&rdquo;.</li>
<li><strong>Precondition for Land Acquisition:</strong> Farmers and villagers, who lose their land in the process of land acquisition for industries, keep such preconditions in which industries have to provide jobs to local youth.</li>
</ul>
</li>
<li><strong>Impacts:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Reduced job creation due to deterrence for industries</strong> in a state with such restrictions. This would do<strong> more harm to natives</strong> than actually benefiting them.</li>
<li>Such restrictions<strong> may hamper the growth and development prospects</strong> of the respective state as well as the country by <strong>affecting ease of doing business.</strong></li>
<li>Restrictions on labour mobility would <strong>disregard this advantage of the diverse labour pool,</strong> which is a strength of the Indian economy.</li>
<li>May<strong> promote aggressive regionalism</strong> and thus a threat to the unity and integrity of India.</li>
<li><strong>Increased risks of labour shortages, rise in unemployment, aggravate wage inflation </strong>and<strong> worsened regional inequalities</strong> are few other possible impacts.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>The idea of JRFL amounts to carving out &lsquo;countries&rsquo; within a country and is based on a dubious assumption that skills in the local market are omnipresent.</li>
<li>The best way to grow out of it is to ensure economic recovery and provide enough job opportunities for youths with skill training and proper education as key focus areas, enabling the masses to compete in the free market.</li>
<li>States need to create a framework where safe interstate <a href="/to-the-points/paper1/human-migration-in-india" target="_blank" rel="noopener"><strong>migration</strong></a> for work is facilitated and fiscal coordination is pursued to enable the portability of social security benefits. If this is done, interstate migration would rise and provide more opportunities to remedy regional disparities.</li>
</ul>
<p><a href="https://indianexpress.com/article/india/haryanvis-first-state-assembly-passes-bill-on-75-job-quota-in-pvt-sector-for-local-people-6964443/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 6903,
		'category_id' => (int) 21,
		'title' => 'Provisions For Platform Workers',
		'description' => '<h3>Why in News</h3>
<p>The <a href="/daily-updates/daily-news-editorials/right-code-for-labour#:~:text=The%20social%20security%20code%20replaces,Standing%20Orders)%20Act%2C%201946." target="_blank" rel="noopener"><strong>Code on Social Security, 2020,</strong></a> for the first time in Indian law, attempted to define &lsquo;platform work&rsquo; outside of the traditional employment category.</p>
<h3>Background</h3>
<ul style="list-style-type: square;">
<li>Labour falls under the Concurrent List of the Constitution. Recently, the Parliament passed <a href="/daily-updates/daily-news-analysis/labour-reforms-1" target="_blank" rel="noopener"><strong>three labour codes</strong></a> &mdash; on <strong>industrial relations; occupational safety, health and working conditions;</strong> and<strong> social security &mdash;</strong> proposing to simplify the country&rsquo;s archaic labour laws and give impetus to economic activity without compromising with the workers&rsquo; benefits.</li>
<li>These labour codes can have a transformative impact on labour relations in India. Along with the<a href="/daily-updates/daily-news-editorials/code-on-wages-1#:~:text=Code%20on%20Wages%20Act%202019,-The%20new%20wage&amp;text=It%20seeks%20to%20universalizes%20the,legislative%20protection%20of%20minimum%20wage." target="_blank" rel="noopener"><strong> &lsquo;Code on Wages Act- 2019&rsquo;</strong></a>, these can significantly ease the conduct of business by amalgamating a plethora of Central and State laws on labour.</li>
<li><strong>Code on Social Security , 2020 has the following provisions:</strong><br />
<ul style="list-style-type: circle;">
<li>This will <strong>replace nine social security laws,</strong> including Maternity Benefit Act, Employees&rsquo; Provident Fund Act, Employees&rsquo; Pension Scheme, Employees&rsquo; Compensation Act, among others.</li>
<li>The code <strong>universalizes social security coverage</strong> to those working in the unorganised sector, such as migrant workers, gig workers and platform workers.<br />
<ul style="list-style-type: disc;">
<li><strong>Aggregators,</strong> meaning &ldquo;digital intermediaries or a market place for a buyer or users of a service to connect with the seller or the service provider&rdquo;, are specifically required to contribute to the <strong>social security fund.</strong></li>
</ul>
</li>
<li>For the first time, provisions of social security will also be <strong>extended to agricultural workers also.</strong></li>
<li>The code also <strong>reduces the time limit for receiving gratuity payment</strong> from the continuous service of five years to one year for all kinds of employees, including fixed-term employees, contract labour, daily and monthly wage workers.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Platform Work</strong> (as defined by the Code): Platform work means <strong>a work arrangement outside of a traditional employer-employee relationship</strong> in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment.</li>
<li><strong>Significance of Platform Work:</strong><br />
<ul style="list-style-type: circle;">
<li>Platform work <strong>promises workers flexibility and ownership</strong> over delivery of work.</li>
<li><strong>Important for delivery of essential services</strong> as seen during <strong>pandemic.</strong></li>
<li><strong>Employment Intensive</strong> Sector.</li>
<li><strong>Potential Sector for growth</strong> due to fast pace of Urbanisation.</li>
<li><strong>Development of rural areas</strong> due to remittances sent by platform workers.</li>
</ul>
</li>
<li><strong>Issues in the sector:</strong><br />
<ul style="list-style-type: circle;">
<li>Though platform work promises workers flexibility and ownership over delivery of work, they are<strong> still largely dictated by mechanisms of control</strong> wired by the algorithm. This affects pricing per unit of work, allocation of work, and hours.</li>
<li><strong>Entry</strong> into on-such platform work like ride sharing and food delivery requires vehicular assets which an average Indian worker lacks. Thus, to enter the platform economy, workers <strong>rely on intensive loan schemes,</strong> often facilitated by platform aggregator companies. This results in dependence on platform companies, driven by financial obligations, thus rendering flexibility and ownership.</li>
<li>Leads to<strong> contractualisation of the workforce</strong> and promotes the <strong>Gig economy.</strong> <br />
<ul style="list-style-type: disc;">
<li>Gig Economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. The term <strong>"gig"</strong> is a slang word for a job that lasts a specified period of time.</li>
<li>A company engaging in greater contractualisation often has a <strong>higher turnover rate of personnel,</strong> creating a disruptive operational environment and leading to higher costs of training and higher incidence in costs of errors.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>Adopting International best practices- Ontario and California have shown a move towards granting employee status to platform workers, thus guaranteeing minimum wage and welfare benefits.</li>
<li>Further, the government needs to ensure easy availability of credit to platform workers.</li>
</ul>
<p><a href="https://www.thehindu.com/opinion/op-ed/a-secure-future-for-platform-workers/article32998179.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 6892,
		'category_id' => (int) 21,
		'title' => 'Sexual Harassment and the Code on Wages',
		'description' => '<h3>Why in News</h3>
<p>According to a provision in the <a href="/daily-updates/daily-news-editorials/code-on-wages-1" target="_blank" rel="noopener"><strong>Code on Wages 2019</strong></a>, <strong>&lsquo;conviction for sexual harassment&rsquo;</strong> can be a<strong> ground for denying bonus payouts</strong> to employees.</p>
<ul style="list-style-type: square;">
<li>The Central government published the <a href="/daily-updates/daily-news-analysis/issues-related-to-minimum-wage#:~:text=The%20Code%20on%20Wages%2C%202020,be%20fixed%20by%20state%20governments." target="_blank" rel="noopener"><strong>Draft Code on Wages (Central) Rules, 2020</strong></a> in July 2020 and placed it in the public domain inviting objections and suggestions.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The Code lays down norms for annual bonus dues that accrue to employees, replacing the <strong>Payment of Bonus Act, 1965,</strong> which bars bonus dues only in case of fraud, violent conduct and theft or sabotage.<br />
<ul style="list-style-type: circle;">
<li><strong>Payment of Bonus Act, 1965:</strong><br />
<ul style="list-style-type: disc;">
<li>The <strong>minimum bonus</strong> payable is <strong>8.33% of the salary or wage</strong> earned by the employee during the accounting year subject to a <strong>maximum of 20</strong>% of such salary or wage and is<strong> applicable to all employees earning a salary of up to Rs. 21,000 a month.</strong></li>
</ul>
</li>
<li><strong>Section 29 of the Code</strong> states that &ldquo;Notwithstanding anything contained in this Code, an employee shall be disqualified from receiving bonus under this Code, if he is dismissed from service for fraud or riotous or violent behaviour while on the premises of the establishment or theft, misappropriation or sabotage of any property of the establishment or conviction for sexual harassment.&rdquo;<br />
<ul style="list-style-type: disc;">
<li>The<strong> salary and bonus payment limits are yet to be notified</strong> under the Code on Wages.</li>
</ul>
</li>
</ul>
</li>
<li>Other <strong>disqualification triggers are explicitly restricted to actions on an employer's premises,</strong> the trigger referring to conviction under sexual harassment does not include such a condition about the location of the incident.<br />
<ul style="list-style-type: circle;">
<li>As of now,<strong> it is not clear if sexual harassment incidents or related crimes against women outside the workplace could lead to dismissal</strong> of employees with loss of bonus payments but it should come under the purview irrespective of where it is done.</li>
</ul>
</li>
<li><strong>Significance of the Move:</strong><br />
<ul style="list-style-type: circle;">
<li>This is a huge step to<strong> get people to be on their best behaviour</strong> in the workplace as the prospect of losing one&rsquo;s benefits may make employees more careful of their conduct.</li>
<li>This is also a step forward <strong>towards creating seriousness about instances of sexual harassment</strong> at the workplace and in general.</li>
<li>This move will serve as an additional deterrent apart from the <a href="/daily-updates/daily-news-analysis/j-s-verma-committee-on-sexual-harassment-at-workplace-act" target="_blank" rel="noopener"><strong>Prevention Of Sexual Harassment (POSH) law of 2013.</strong></a></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Code on Wages Act, 2019</strong></p>
<ul style="list-style-type: square;">
<li>The <a href="/daily-updates/daily-news-analysis/the-code-on-wages-bill" target="_blank" rel="noopener"><strong>new wage code</strong></a> <strong>removes the multiplicity of wage definitions,</strong> which can significantly reduce litigation as well as compliance cost for employers.</li>
<li>It links minimum wage across the country to the <strong>skills of the employee</strong> and the <strong>place of employment.</strong></li>
<li>It seeks to<strong> universalise the provisions</strong> of minimum wages and their timely payment to all employees irrespective of the sector and wage ceiling.</li>
<li>It seeks to ensure <strong>Right to Sustenance for every worker and intends to increase the legislative protection</strong> of minimum wage.</li>
<li>A <strong>National Floor Level Minimum Wage</strong> will be set by the Centre and will be<strong> revised every five years,</strong> while states will fix minimum wages for their regions, which cannot be lower than the floor wage.</li>
<li>It <strong>subsumes the following four labour laws:</strong><br />
<ul style="list-style-type: circle;">
<li>Payment of Wages Act, 1936</li>
<li>Minimum Wages Act, 1948</li>
<li>Payment of Bonus Act, 1965</li>
<li>Equal Remuneration Act, 1976</li>
</ul>
</li>
</ul>
<p><strong>Prevention Of Sexual Harassment Law 2013</strong></p>
<ul style="list-style-type: square;">
<li>Under it, sexual harassment includes<strong> any one or more of the following unwelcome acts or behaviour</strong> (whether directly or by implication):<br />
<ul style="list-style-type: circle;">
<li>Physical contact and advances.</li>
<li>Demand or request for sexual favours.</li>
<li>Making sexually coloured remarks.</li>
<li>Showing pornography.</li>
<li>Any other unwelcome physical, verbal or non-verbal conduct of sexual nature.</li>
</ul>
</li>
<li>As per the POSH law guidelines, firms are required to form an <strong>Internal Complaints Committee</strong> (ICC) to <strong>inquire into complaints of sexual harassment</strong> at the workplace.</li>
<li>ICC is required to<strong> make recommendations</strong> to employers on the action required pursuant to its inquiry in such complaints.</li>
<li>If the ICC upholds a complaint, it<strong> could be interpreted as a conviction</strong> and ICC has the<strong> powers to decide if someone is guilty and report it further to the police,</strong> though not all sexual harassment cases translate into a police case.</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/news/national/new-rules-bar-bonus-for-those-facing-sex-abuse-charges/article32985691.ece#:~:text=The%20new%20Code%2C%20expected%20to,conduct%20and%20theft%20or%20sabotage." target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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	(int) 18 => object(Cake\ORM\Entity) {

		'article_id' => (int) 6886,
		'category_id' => (int) 21,
		'title' => 'Quarterly Periodic Labour Force Survey',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <strong>National Statistical Office (NSO)</strong> released the <strong>quarterly Periodic Labour Force Survey (PLFS)</strong> for October-December 2019.</p>
<ul style="list-style-type: square;">
<li>This dataset differs from the <a href="/daily-updates/daily-news-analysis/periodic-labour-force-survey-2018-19" target="_blank" rel="noopener"><strong>Annual Report of Periodic Labour Force Survey</strong></a>, which covers <strong>both rural and urban areas.</strong> However, unemployment data for urban areas is released quarterly.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Unemployment Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>It eased in urban areas to 7.9% in October-December 2019 compared to 9.9% in October-December 2018.<br />
<ul style="list-style-type: disc;">
<li>However, state-wise data showed that<strong> urban unemployment rate was higher than the national average</strong> in Uttar Pradesh, Uttarakhand, Telangana, Kerala, Madhya Pradesh, Jammu &amp; Kashmir, Delhi and Andhra Pradesh.</li>
</ul>
</li>
<li><strong>Female unemployment rate</strong> decreased to 9.8% in October-December 2019 compared to 12.3% in October-December 2018.</li>
<li><strong>Male unemployment rate</strong> moderated to 7.3% in October-December 2019 from 9.2% in October-December 2018.</li>
</ul>
</li>
<li><strong>Labour Force Participation Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>It rose to 37.2% in October-December 2019 from 36.3% in October-December 2018.</li>
</ul>
</li>
<li><strong>Periodic Labour Force Survey (PLFS)</strong><br />
<ul style="list-style-type: circle;">
<li>PLFS is India&rsquo;s first computer-based survey launched by the National Statistical Office (NSO) in 2017.</li>
<li>It has been constituted based on the recommendation of a committee headed by <strong>Amitabh Kundu.</strong></li>
<li>PLFS has two fold objective:<br />
<ul style="list-style-type: disc;">
<li>To estimate the key employment and unemployment indicators (viz. <strong>Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate)</strong> in the<strong> short time interval of three months</strong> for the <strong>urban areas only</strong> in the <strong>Current Weekly Status (CWS).</strong></li>
<li>To estimate <strong>employment and unemployment indicators</strong> in both<strong> usual status</strong> and<strong> CWS</strong> in both <strong>rural and urban areas annually.</strong></li>
</ul>
</li>
<li>Before PLFS, the NSSO (previous name of NSO) used to bring the data related to <strong>employment and unemployment</strong> based on its <strong>quinquennial (every 5 year) household socio-economic survey programme.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Key Terms</strong></p>
<ul style="list-style-type: square;">
<li><strong>Unemployment Rate (UR):</strong> UR is defined as the percentage of persons unemployed among the persons in the labour force.</li>
<li><strong>Labour Force Participation Rate (LFPR):</strong> LFPR is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.</li>
<li><strong>Worker Population Ratio (WPR):</strong> WPR is defined as the percentage of employed persons in the population.</li>
<li><strong>Activity Status:</strong> The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period.<br />
<ul style="list-style-type: circle;">
<li><strong>Usual Status:</strong> The activity status determined on the basis of the reference period of the last 365 days preceding the date of survey, it is <strong>known as the usual activity status</strong> of the person.</li>
<li><strong>Current Weekly Status (CWS):</strong> The activity status determined on the basis of a reference period of the last 7 days preceding the date of survey is <strong>known as the current weekly status (CWS)</strong> of the person.</li>
</ul>
</li>
</ul>
<p><strong>National Statistical Office</strong></p>
<ul style="list-style-type: square;">
<li>NSO is the <strong>central statistical agency of the Government</strong> mandated under the <strong>Statistical Services Act</strong> 1980 under the <strong>Ministry of Statistics and Programme Implementation.</strong></li>
<li>It is responsible for the development of arrangements for<strong> providing statistical information services</strong> to meet the needs of the Government and other users for information on which to base policy, planning, monitoring and management decisions.<br />
<ul style="list-style-type: circle;">
<li>The services include collecting, compiling and disseminating official statistical information.</li>
<li>All business operations in NSO are done in compliance with<strong> international standards, procedures and best practices.</strong></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/economy/oct-dec-2019-urban-joblessness-eases-labour-activity-rises-6909215/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 6715,
		'category_id' => (int) 21,
		'title' => 'India in BRICS Ministers’ Meeting',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/5th-brics-culture-ministers-meet" target="_blank" rel="noopener"><strong>BRICS</strong></a> <strong>Labour and Employment Ministers&rsquo; Virtual Meeting</strong> was held under the <strong>Russian Presidency.</strong></p>
<ul style="list-style-type: square;">
<li>It aimed to discuss various <strong>issues including approaches to creating a safe work culture in BRICS countries.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Emphasis on Health of Workers:</strong><br />
<ul style="list-style-type: circle;">
<li>It was highlighted that<strong> health, welfare and improved working conditions</strong> are essential for the well-being of the workers. A healthy workforce in the country would be more productive and contribute to economic growth.</li>
<li>The <strong>aspects of occupational safety and health measures</strong> to mitigate the impact of <a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19" target="_blank" rel="noopener"><strong>Covid-19</strong></a> have also acquired significance.</li>
</ul>
</li>
<li><strong>India&rsquo;s Stand:</strong><br />
<ul style="list-style-type: circle;">
<li>India <strong>called for suitable global action</strong> especially by BRICS towards effecting a <strong>balance between labour and employer</strong> which will generate growth and create more jobs and greater labour welfare.</li>
<li>India also<strong> highlighted the importance of digitisation and technological advancements</strong> like <a href="/loksabha-rajyasabha-discussions/in-depth-artificial-intelligence" target="_blank" rel="noopener"><strong>artificial intelligence</strong> </a>(AI) and <a href="/loksabha-rajyasabha-discussions/policy-watch-robotics-and-automation-in-india" target="_blank" rel="noopener"><strong>robotics</strong></a> in reshaping lives and work, with a direct or indirect effect on the labour market.<br />
<ul style="list-style-type: disc;">
<li>Digitisation also <strong>offers the opportunity</strong> for governments, individuals and businesses<strong> to cope with the changing scenarios after the <a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-whohttps://www.drishtiias.com/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener">pandemic.</a></strong></li>
</ul>
</li>
<li>India underscored that the <a href="/daily-updates/daily-news-editorials/how-to-regulate-the-digital-economy" target="_blank" rel="noopener"><strong>digital economy</strong></a> is changing the world of work, hence <strong>regular studies by the BRICS Network Research Institutes</strong> will facilitate a <strong>better understanding</strong> of the aspects of future of work and supplement policymaking.</li>
<li>India is committed to <strong>eradicate <a href="/to-the-points/Paper2/poverty-9" target="_blank" rel="noopener">poverty</a></strong> and <strong>promote prosperity</strong> in a changing world and hence adopted a multi-dimensional strategy to eliminate poverty by covering most of the basic services and fulfil the <a href="/to-the-points/paper3/sustainable-development-3" target="_blank" rel="noopener"><strong>Sustainable Development Goals</strong></a> of <strong>No Poverty</strong> (SDG-1).</li>
</ul>
</li>
</ul>
<h3>Initiatives Highlighted by India</h3>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-editorials/right-code-for-labour" target="_blank" rel="noopener"><strong>Occupational Safety, Health and Working Conditions Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Provides a dynamic and effective framework of occupational safety and health at the workplace and covers legal provisions of all sectors.</li>
<li>Envisages safety standards for different sectors, focusing on the health and working condition of workers, hours of work, leaves, etc.</li>
</ul>
</li>
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-the-labour-code-bills" target="_blank" rel="noopener"><strong>Social Security Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li><strong>Universalises social security coverage</strong> to those working in the unorganised sector, such as migrant workers, gig workers and platform workers.</li>
<li><strong>Recognises emerging forms of work</strong> by defining terms like an aggregator, gig worker and platform worker, and extends social protection to such workers through a <strong>separate Social Security Fund</strong> wherein the contribution from aggregators would be deposited.</li>
<li>Provisions of social security will also be<strong> extended to agricultural workers.</strong></li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/labour-reforms-1#:~:text=Social%20Security%20Code%20Bill%2C%202020,gig%20workers%20and%20platform%20workers." target="_blank" rel="noopener"><strong>Industrial Relations Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Sets up <strong>Grievance Redressal Committees</strong> for resolution of disputes arising out of employees&rsquo; grievances.</li>
<li>Also sets up a reskilling fund to help skill retrenched workers.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-editorials/pm-kisan" target="_blank" rel="noopener"><strong>Pradhan Mantri Kisan Samman Nidhi:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Provides direct income support to farmers for easing their liquidity needs to facilitate timely access to inputs.</li>
<li>Aiding modernisation and makes farmers competitive.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atmanirbhar Bharat Abhiyaan:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Protects the economy from the<strong> adverse impact of the Covid-19 crisis.</strong></li>
<li>Measures include opening a credit line for micro, small and medium enterprises to meet their operational expenses, subsidising the social security contributions of workers, extending unemployment benefit to workers, financial assistance to construction workers, collateral-free working capital loan to approximately 5 million street vendors, etc.</li>
</ul>
</li>
<li><strong>Other Related Schemes:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-editorials/mgnrega-and-migrant-crisis" target="_blank" rel="noopener"><strong>National Rural Employment Guarantee Scheme.</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/national-rural-economic-transformation-project-1" target="_blank" rel="noopener"><strong>National Livelihood Mission.</strong></a></li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<p>All countries need to work together in finding feasible and sustainable solutions to the issues and challenges faced by the future of the labour force in the digital economy so that everyone can get the flexible employment opportunities without compromising the fundamental rights.</p>
<p><a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1663547" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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