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India’s way forward: Services or manufacturing?

stylish lining

Context: India's economic development strategy has been debated for a long time, with some arguing for a service-led growth model and others for a manufacturing-led model. The country's current development path has seen growth primarily in the service sector, with the manufacturing sector's share of output and employment plateauing at or below 20%.

Service sector model:

  • The service sector's growth occurs through rising demands for medical, legal, entertainment, accounting, and other personal services, driven by increasing personal incomes of residents and outsourcing of business processes by firms.
  •  However, the service sector has limitations, as it creates mostly low-value-added, low-skills jobs, which do not meet the aspirations of India's young workforce.

Challenges Encountered by the Service Sector in India:

  1. Regulatory Complications: Businesses in the service sector face obstacles due to intricate and frequently changing regulations, adding complexity to their operations.
  2. Infrastructure Limitations: The service sector is impeded by insufficient infrastructure, particularly in transportation and logistics, which can impede the smooth delivery of services.
  3. Shortages in Skilled Labor: Although India produces a substantial number of graduates and skilled professionals, there exists a gap between the workforce's skills and the specific demands of certain service sectors.
  4. Adoption of Technology: While significant strides have been made in the IT and software services sector, many other service industries lag in embracing technology to enhance efficiency and competitiveness. In the contemporary global service environment, digital transformation is imperative.
  5. Data Privacy and Security: In the digital era, heightened concerns about data privacy and security present challenges for service providers. Navigating complex data protection laws and ensuring the secure handling of customer data is crucial in this context.

Manufacturing-led model

  • The manufacturing-led model can provide more job opportunities and help India meet the aspirations of its young population.
  • The government's Production-Linked Incentive (PLI) scheme aims to incentivize private industry to scale up, but it remains to be seen whether these businesses will stay or leave after the incentive schemes end.

Challenges faced by manufacturing sector:

  1. Absence of technology and infrastructure: One of the foremost hurdles confronting the Indian manufacturing industry is the dearth of advanced technology and infrastructure. Numerous Indian manufacturers still depend on outdated methods, hindering their ability to compete globally. This deficiency in technology and infrastructure also poses challenges in meeting stringent global quality standards.
  2. Shortage of skilled workforce: Another significant obstacle for Indian manufacturing is the scarcity of proficient workers. While India boasts a vast workforce, a substantial portion lacks the requisite skills for modern manufacturing. This scarcity of skilled labor makes it challenging for manufacturers to adapt to the swiftly changing demands of the global market.
  3. Bureaucratic impediments: The manufacturing sector in India is hindered by bureaucratic obstacles, leading to production delays and increased costs. Acquiring essential permits and licenses, for instance, can be time-consuming, resulting in production setbacks. This, in turn, complicates manufacturers' ability to adhere to stringent deadlines set by global customers.
  4. Concerns about intellectual property rights: Indian manufacturers often grapple with the vulnerability of their intellectual property rights, as they may not be adequately protected against theft or infringement. This fear impedes innovation and the introduction of new products to the market, as manufacturers worry about the potential appropriation of their ideas.
  5. Competition from China: The persistent competition from China poses a formidable challenge to Indian manufacturers in the global arena. Chinese manufacturers maintain an edge in terms of technology, infrastructure, and scale, intensifying the competitive landscape for their Indian counterparts.

Which model is suitable for India?

  • India needs to combine both manufacturing and service sector models to address its job challenge.
  • It should focus on land and labor regulatory reforms, which are fiscally costless but entail political costs.
  • India needs to address its skill deficit by raising its investment in higher education.
  • This would involve incentivizing private industry to scale up.
  • The rise in modern services is seen as a potential driver for energizing manufacturing, and there are examples of multinationals and domestic services start-ups venturing into manufacturing.
  • The "Make in India" initiative was aimed at making India a global manufacturing hub, and it is important for the country to achieve a structural transformation of its industry. Therefore, the way forward for India may involve a balanced approach that leverages the strengths of both the manufacturing and service sectors to ensure sustainable and inclusive economic growth.

The blood management system needs a fresh infusion

stylish lining

Context: The COVID-19 pandemic highlighted global health inequalities, prompting policymakers worldwide to advocate for enhanced global health infrastructure as a means to drive economic growth and ensure planetary well-being. However, amid these critical efforts, prioritizing access to blood and its products is deemed essential for establishing a robust global health architecture.

The issue of blood shortage

  • It is a global concern, with significant disparities in blood collection between countries. For instance, countries in the WHO African region collect only 5% of global donations, despite having 14% of the global population.
  • Similarly, India faces a perennial blood shortage, impacting critical healthcare services. The country collected around 1.27 crore blood units and faced a shortage of over six lakh units in 2019-20.
  • Misconceptions and myths surrounding blood donation are a significant barrier to voluntary blood donation. Many people refrain from donating blood due to the fear of infections, damaging their immunity, or assuming it to be a time-consuming process.
  •  
  • These misconceptions can be dispelled through targeted awareness initiatives, including social media campaigns and innovative tools such as multi-lingual comics.

Implications:

  • Blood shortages can have serious implications on the functioning of healthcare systems and can put lives at risk. For example, an automobile accident victim needs up to 50 units of blood, and the shortage in 2019-20 could have put approximately 12,000 accident victims' lives at risk.
  • Moreover, the deficit could impact 1,00,000 heart surgeries and approximately 30,000 bone marrow transplants.

Solutions:

  • To address this issue, countries need to focus on blood safety and availability, ensuring timely access to safe blood for all who need it.
  • The WHO provides policy guidance and technical assistance to countries for developing national blood systems.
  • It is crucial to strengthen the blood management ecosystem and encourage regular and voluntary blood donation.
  • The private sector can work closely with the government to launch dedicated awareness campaigns aimed at the grassroots.
  • Blood collection rates vary dramatically worldwide, with 81% of blood units collected annually in the United States, Canada, Europe, and Australia. This leaves low- and middle-income countries with an unmet need totaling over 100 million units each year.
  • The hub and spoke model:
    • Here high-volume blood banks act as a hub for smaller blood centers, is an innovative approach that can enhance blood availability and distribution, especially in Resource-constrained settings.
    • This model can optimize the utilization of blood and its products, streamline distribution, and reduce losses from expiration.
    • Additionally, it can improve accessibility to safe blood and its products in community health centers and smaller sub-district hospitals, particularly in geographically challenging areas.
    •  
    • The implementation of this model, along with PPPs, can help mitigate the global disparities in blood collection and contribute to addressing the critical shortage of blood available for transfusion, especially in LMICs.

Snow leopard

stylish lining

Context: Sadyr Zhaparov, the president of Kyrgyzstan signed a decree to declare the snow leopard as the national symbol of Kyrgyzstan.

About Snow Leopard:

  • Scientific Name: Panthera uncia
  • Indicator Species: Snow leopards serve as crucial indicators of the mountain ecosystem's health due to their role as the top predator in the food web.
  • Habitat: Found in the mountains of central Asia and the Indian subcontinent, their habitat spans elevations from approximately 1,800 meters (6,000 feet) in winter to about 5,500 meters (18,000 feet) in summer.
  • Geographical Range: The snow leopard's range covers twelve countries, including Afghanistan, Bhutan, China, India, Kazakhstan, Kyrgyzstan, Mongolia, Nepal, Pakistan, Russia, Tajikistan, and Uzbekistan.
  • Geographical Range in India:
    • Western Himalayas: Jammu and Kashmir, Himachal Pradesh.
    •  
    • Eastern Himalayas: Uttarakhand, Sikkim, and Arunachal Pradesh.
    • Hemis National Park (Ladakh): Recognized for its significant snow leopard population, Hemis National Park is also known as the Snow Leopard Capital of the world.
    • IUCN status: vulnerable

Global Conservation Initiatives for Snow Leopards:

  • Project Snow Leopard (PSL): Initiated in 2009, PSL aims to foster an inclusive and participatory approach to safeguarding snow leopards and their habitats.
  • Ministry of Environment Forest & Climate Change Recovery Program: Snow leopards are included in the list of 21 critically endangered species designated for the recovery program led by the Ministry of Environment Forest & Climate Change.
  • SECURE Himalaya:Funded by the Global Environment Facility (GEF) and the United Nations Development Programme (UNDP), SECURE Himalaya focuses on conserving high-altitude biodiversity and reducing the reliance of local communities on the natural ecosystem.
  • Global Snow Leopard and Ecosystem Protection (GSLEP) Programme: India has been actively participating in the GSLEP Programme since 2013, emphasizing global collaboration for snow leopard conservation.
  • Flagship Species Designation:The Government of India has recognized the snow leopard as a flagship species for the high-altitude Himalayas, indicating its significance in conservation efforts.

About Kyrgyzstan

  • Kyrgyzstan is a landlocked country in Central Asia.
  • Bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the south, and China to the east and southeast.

Bab el-Mandeb

stylish lining

Context: British maritime security agency UKMTO reported explosions late Tuesday near a cargo ship in the strategic Bab el-Mandeb Strait, which separates the Arabian Peninsula from the Horn of Africa.

About Bab al-Mandab Strait

  • It is a strait that connects the Red Sea (northwest) with the Gulf of Aden and the Indian Ocean (southeast).
  • It is located between Arabia (northeast) and Africa (southwest).
  • It is an important strategic connection in the marine commerce route connecting the Mediterranean Sea to the Indian Ocean via the Red Sea and the Suez Canal.
  • It is one of the world's most important seaborne commodity shipping routes, primarily for crude oil and petroleum.
  • Yemen borders it on the Arabian Peninsula, and Djibouti and Eritrea border it on the African coast.

Buxa National Park

stylish lining

Context: Recently, a tiger has been observed in West Bengal’s Buxa National  Park. The previous  sighting of Tiger was after 23 years on December 12, 2021.

News:

Possible Factors Contributing to the Tiger Population Recovery:

  • Growth in the number of prey animals for tigers.
  • Increase in the size of grassland habitats, providing more suitable areas for tiger populations.
  • Measures implemented to regulate and control human-tiger interactions.
  • Initiatives aimed at curbing unauthorized entry and trespassing in tiger habitats.

About Buxa Tiger Reserve:

  • Situated in the Alipurduar district of North Bengal, Buxa Tiger Reserve's northern boundary aligns with the border of Bhutan
  • Established in 1983, Buxa Tiger Reserve gained the status of the 15th Tiger Reserve in India. It was later declared a National Park in January 1992.
  • In 2018, the state forest department, Wildlife Institute of India, and the National Tiger Conservation Authority introduced the "Tiger Augmentation and Monitoring Project" in Buxa.
  • The reserve is traversed by rivers such as Sankosh, Raidak, Jayanti, Churnia, Turturi, Phashkhawa, Dima, and Nonani.
  • Characterized by Moist Tropical Forest, Buxa Tiger Reserve features diverse and rich vegetation.
  • Among the notable species found in the reserve are the Indian Tiger (Panthera tigris tigris), Leopard (Panthera pardus), Clouded Leopard (Neofelis nebulosa), Jungle Cat (Felis chaus), and others.

Tiger Conservation Status:

  • Indian Wildlife (Protection) Act, 1972: Designated under Schedule I, providing the highest level of legal protection.
  • International Union for Conservation of Nature (IUCN) Red List: Classified as "Endangered," signifying a high risk of extinction in the wild.
  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): Listed in Appendix I, indicating the highest level of protection against trade to prevent exploitation.

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