Editorials/Opinions Analysis For UPSC 08 May 2025

Content:

1. A step up
2. The road to regulatory reform
3. The building blocks of an India-U.S. energy future

A step up

Context : Progress on Human Development Index (HDI)

• HDI Ranking: India moved up from 133 (2022) to 130 (2023) out of 193 countries, showing modest but significant progress.
• HDI Value: Rose from 0.676 (2022) to 0.685 (2023), indicating better outcomes in health, education, and income.
• Historical improvement:
  • Life expectancy: Increased to 72 years in 2023 (up from 58.6 in 1990).
  • Expected years of schooling: Now at 13 years, up from 8.2 in 1990.
  • GNI per capita: Grew from $2,167.22 (1990) to $9,046.76 (2023).

Relevance : GS 2(Governance , Social Issues )

Practice question :Despite improvements in India’s HDI ranking, deep-rooted inequalities persist. Examine the policy efforts that have contributed to HDI improvement and identify key challenges, especially regarding the role of emerging technologies like Artificial Intelligence.(250 Words)

Policy Contributions to Human Development

• Key welfare programmes acknowledged:
  • MGNREGA: Provided income security and rural employment.
  • Right to Education (RTE) Act: Increased access to education.
  • National Rural Health Mission: Improved rural healthcare delivery.
• Multidimensional Poverty Reduction:
  • 13.5 crore people exited multidimensional poverty between 2015-16 and 2019-21.

Challenges: Rising Inequality

• HDI Inequality Adjustment: India’s HDI drops by 30.7% due to income and gender inequalities — among the highest losses in the region.
• Educational access: Still unequal, especially for underprivileged children.
• Gender disparity:
  • Female labour force participation increased to 41.7% (2023-24) — yet:
    • Women lack supportive ecosystems to sustain employment.
    • Job retention and career advancement remain fragile.
  • Political representation: Delay in implementing 33% legislative seat reservation for women reflects policy inertia.
• Income disparity: Rapid growth in per capita income masks unequal income distribution, with gains concentrated in upper-income segments.

AI and Future Development

• India’s AI capacity:
  • Now hosts 20% of global AI researchers, a sharp rise from nearly zero in 2019.
• HDR 2025 Theme: “A Matter of Choice: People and Possibilities in the Age of AI” — underscores AI as a development enabler.
• Opportunities:
  • AI can transform agriculture, healthcare, education, and public services.
• Risks:
  • Digital divide and algorithmic bias can amplify existing socio-economic inequalities.
  • Need for ethical regulation, data protection, and inclusive access to AI technologies.

Key Takeaways for Policy and Governance

• Growth needs to be inclusive — addressing gender, regional, and caste disparities.
• Education and health equity should be prioritized to sustain HDI momentum.
• AI governance frameworks are essential to ensure it’s a tool for equity, not exclusion.
• Women’s empowerment — both economically and politically — is crucial for long-term human development.
• Intervention must focus on quality (not just quantity) in schooling, health access, and job creation.

The road to regulatory reform

Shift in Economic Growth:

• India’s economic growth has been primarily driven by services, which now account for 55% of gross value added (up from 33% in 1980), while manufacturing has seen only a marginal increase.
• Historically, manufacturing faced heavy regulation, while services were less regulated, but this is changing with the rise of the services sector.

Relevance : GS 3(Indian Economy)

Practice Question :Critically examine India’s regulatory framework and its impact on business growth, particularly in the services and manufacturing sectors. What reforms are necessary to improve the ease of doing business, and how can the regulatory culture be transformed to foster economic growth?(250 Words)

Current Regulatory Challenges:

• Anecdotes highlight the challenges businesses face due to outdated regulations and corruption, such as inspectors demanding payments or arresting owners for non-compliance with arcane laws.
• These regulatory issues hinder entrepreneurship and create a distrustful business environment.

Proposed Solutions for Regulatory Reform:

• Self-certification and Third-party Approvals:
  • Replace inspections and No-Objection Certificates (NOCs) with self-certification, especially for low-risk activities.
  • Use certified third parties to streamline approvals, such as for building plans, labor, fire safety, etc

• Transparency and Simplified Documentation:
  • Mandate full transparency regarding documentation, checklists, and NOCs needed for approvals.
  • Online publication of official procedures and regular joint inspections with a common checklist should be standard.

• Technology Integration:
  • Automate approvals and NOCs using technology, with geotagged location-based approvals for low-risk activities like building construction.
  • Extend similar automation to mining, forests, railways, and defense-related NOCs.

Reforms in Labor and Land Markets:

• Land Use and Acquisition:
  • Remove restrictions and simplify regulations related to land acquisition, zoning, and building byelaws for industrial use.

• Labor Laws:
  • Modernize labor laws to adapt to gig work and eliminate outdated provisions in the Factories Act.
  • Create a time-bound appeal system for harassment cases and consequences for regulatory overreach.

• Gig Work:
  • Avoid inflexible labor laws for gig workers; instead, adapt regulations that ensure workers’ rights and dignity while not stifling business flexibility.

Cultural Shift in Bureaucracy:

• Promote a shift in bureaucratic culture from obstruction to facilitation of business and economic growth.
• Make performance evaluations of government departments reflect their contribution to investment and growth.

Need for Deep Micro-Economic Reforms:

• India needs reforms at the micro-economic level to achieve sustained growth, aiming for 8% annual growth to meet its 2047 development goals.
• Removing regulatory “cholesterol” is key to energizing the domestic economy and overcoming external challenges like global trade disruptions.

Conclusion:

• India must modernize its regulatory framework to support growth in both services and manufacturing.
• Reforming bureaucracy, labor laws, and land acquisition processes will be critical to unlocking India’s economic potential and achieving sustainable growth.

The building blocks of an India-U.S. energy future

India-U.S. Energy Cooperation:

• Context: Recent emphasis on India-U.S. energy cooperation, particularly in energy, defence, technology, and people mobility.
• India’s Energy Security: Key focus on ensuring sufficient energy resources, stable supply chains, and a sustainable energy mix.
• Core Areas of Collaboration: Nuclear energy and critical minerals are central to strengthening India-U.S. energy and technology ties.

Relevance : GS 2(International Relations)

Practice Question: Critical minerals and nuclear energy are the bedrock of a resilient India-U.S. energy partnership.” Discuss in the context of India’s energy security and the evolving global geopolitical landscape.(250 Words)

 Critical Minerals Compact:

• Global Dependency: China controls 90% of global rare earth processing capacity, leading to supply chain vulnerabilities.
• India-U.S. MOU (2024): Agreement to diversify critical mineral supply chains and avoid coercive measures.
• Key Principles for Cooperation:
  • Comprehensive Approach: Minerals must be seen as a strategic asset, not just for mining.
  • Bilateral and Plurilateral Cooperation: Ensure supply guarantees and foster demand-driven partnerships.
  • Integration with the Quad: Enhance collaboration on mineral processing and technology.
• Digital Solutions: Proposing a dedicated India-U.S. Mineral Exchange platform for trade and investment.
• Strategic Stockpiles: Joint stockpiles of key minerals for resilience against geopolitical disruptions.
• Patience in Development: Mineral exploration and processing take long-term planning (12-16 years for mines).

Nuclear Energy as the Next Frontier:

• Energy Demand Surge: India’s growing electricity needs demand a stable, low-carbon energy source.
• Nuclear Energy Goals: India aims for 100 GW nuclear capacity by 2047; currently at 8 GW.
• Required Reforms for Growth:
  • Shorten Deployment Timelines: Accelerate nuclear project build times (from 9 to 6 years) to reduce electricity costs.
  • Private Sector Participation: Encourage private capital with incentives for projects like Small Modular Reactors (SMRs).
  • Financial System Adaptation: The $180 billion nuclear energy target requires financial system support.
• Nuclear Safety: Priority on advanced waste management and safety, especially with the introduction of SMRs.

Issue of Safety and Legislative Reforms:

• Reform of Civil Liability for Nuclear Damage Act (2010): To enable more private investments in nuclear projects.
• International Collaboration: Example of U.S.-India cooperation in SMR technology transfer (Holtec International).
• SMR Suitability: SMRs offer advantages like smaller emergency zones and air-cooling for water-scarce areas but require strong waste management strategies.

Long-term Strategic Vision:

• Energy Security and Economic Growth: Emphasizes a resilient, long-term partnership between India and the U.S.
• Vision Beyond Short-Term Wins: Advocates for long-term planning, shared goals, and collaboration in energy and technology sectors.
• Role of Global Economic Uncertainty: Recognizes the challenges posed by global trade tensions, and underscores the need for dependable energy partnerships.

Conclusion:

• The article discusses the need for long-term strategic collaboration between India and the U.S. on critical minerals and nuclear energy to ensure India’s energy security and sustainable development goals.
• Emphasis on patience, clear policies, and effective coordination across sectors, including data sharing, workforce development, and investment tracking.