Infrastructure & Human development
Helps economy to function & grwo eg emergy, irrigation, roads, railways, telecom
Sectors granted infra status
- Transport and logistic
- Water and sanitation
- Social and commercial infrastructure
Benefits of getting infra status
- Tax benefits
- Faster FDI approval
- Relaxed ECB norms
- Easier funding
National Mineral Policy 2019
- 100% FDI
- Infra status
- Mining lease only through auction
- National mineral exploration trust
- District mineral foundation -> For welfare of mining affected people
- National mineral exploration policy – Mining company required to pay them, they will carry out mineral exploration
Shakti – Centralised bidding process for coal allocation
- Developed countries blame developing countries for coal energy with hidden agenda to sell their nuclear fuel and technology and to reduce their culpability of global warming
Why coal energy is necessary ?
- Nuclear fuel problems
- Land requirement for solar is more (No need)
- Thermal – 64%
- Hydro – 13%
- Renewable – 21
Nuclear – 2
One nation one grid
- Connect 5 regional grids
- Transfer electricity from surplus region to deficient region
Green energy corridor project – Flow of renewable energy into national grid network
Saubhagya – Har ghar Bijali
UJALA yojana – LED
- 175 GW target
- Gobardhan – Cattle dung to biogas
Water & Sanitation
Jal Kranti Abhiyan
- In every district convert two water stressed villages into water surplus villages
Jal Shakti Abhiyan
- Rainwater harvesting
- Renovation of traditional water bodies
- Bore well recharge
Jal Jivan mission
- Piped water supply to all rural households by 2024
- Community participation
- Flexibility in choice depending upon user preference and location specific needs
- Instil behaviour change
- Swachh Bharat Kosh to encourage Corporate Social Responsibility and accept contributions from private organizations, individuals and philanthropists.
- Use of Technology such as social media and mobile apps (90% toilets geo tagged)
- Nearly 98.9% of India has been covered under SBM
- over 5.4 lakh villages and 585 districts have been declared Open Defecation Free (ODF).
- 27 States and Union Territories have declared themselves ODF so far
- Over 9.5 crore toilets have been built all over the country
- 96.5% of the rural households that had access to a toilet, used them. (National Annual rural sanitation survey)
- Becoming ODF had a positive impact on the child health and nutrition.
- Every household in an ODF village saved about ₹50,000 per year on account of financial savings due to lower likelihood of disease. (UNICEF study)
- Manual scavenging
- Private Partnership and Corporate Social Responsibility can ensure, in specific contexts, a smooth flow of funds
- Effective disposal of waste should be the next on the agenda for this mission.
Inland water way
Jal marg Vikas Project
- Enable National water way on the route of Waranasi- Haldia
Sagar Mala project
- Port led development
- improve port connectivity through rail corridors, freight-friendly expressways and inland waterways
- Create CEZ
- develop skills of fishermen and other coastal and island communities.
Ports Challenges India
- Third generation large ships unable to load in India
- Port congestions
- Domestic ship building industry is underdevloped
- Aims to upgrade and expand highways
- Special focus on connecting coastal areas, economic corridors and border regions
- Aims to make all national highways free of railway level crossing by constructing railway over bridges or railway under bridges
- Less traffic congestion, less accidents
- Connect Haldi to Sittwe port -> Kaladan river to Mizoram
- AlterNet connectivity between west Bengal and Myanmar
- Indian transport is second largest contributor of CO2 emission after industry
Why E Vehicle ?
- Less import of crude oil
- Emerge as hub of manufacturing for EV
- Less pollution
- 100% FDI
- FAME scheme
- Lithium would be new oil for India thus research required (Congo, Bolivia, Chilli, Australia – Controlled by India)
- Charging infrastructure
- High temperature -> Frequent battery change
Challenges in metro
- More capital and technology intensive
- Problems in land acquisition
- Environmental issues raised
- Fares cant be raised beyond point thus it is difficult to recover investment
Metro rail policy 2017
- Metro should launch after cost benefit approach
- State government responsibility in land acquisition
Housing for all (PM Awas Yojana)
- Subsidy to builder if he keeps 35% for EWS
- Slum redevelopment
- Credit linked subsidy scheme – 3-4% interest subsidy
- Identified by SECC and verified by Gram Sabha
- Money to built home
- Aims to improve basic urban infrastructure
Smart cities mission
- Ideally aim at developing the entire urban eco-system, which is represented by the four pillars of comprehensive development-institutional, physical, social and economic infrastructure.
- Use of ICT
- PH friendly infrastructure
Shama Prasad Mukharjee Rurban mission – Providing urban amenities in rural area
Rashtriy Gram Swaraj Abhiyan – Panchaytai raj development
Spectrum – Radio waves which are used by mobile phones to transmit data
2 G spectrum scam
- License based on first come first serve basis and 2G spectrum linked with the license
- Shell companies who did not wanted license acquired that license and sold it to the needy companies
- Unified license
- Separately buy spectrum
- Connect all Panchayat through broadband
- Cloud computing service
5G in India
- India allowed Huwwei to in 5G trials
- Agreement is way forward
Telecom sector issues
- AGR issues
- Competition -> fall in profitability
AGR (Adjusted gross revenue)
- Telecom sector pays 8% of license fee and 3-5% as Spectrum usage charges
- Govt – Not just on telecom revenue but all revenues of the company
- The total amount to the government is owed by about 15 operators. However, 10 of them have either closed operations or are undergoing insolvency proceedings in the last 14 years
- 15 years with 6% interest
- Reducing base price of spectrum
National policy on software products
- Promote 10k start ups in software products
- Skill upgradation
- Software development fund -> fund of funds -> Give to venture capitals
- Data is information stored in digital forms
- Administrative data
- Survey data
- Transaction data
- Institutional data
Data integration and opportunities
- Weeding out bogus beneficiaries
- National health register
- Data privacy
- Paper based data conversion
- Officials should be trained
Data as a public good
- The Economic Survey 2018-19 has said data must be treated as a public good, which can be used for social welfare and also be monetised to ‘ease pressure on government finances,’ but cautioned that privacy implications of the anonymised information need to be factored in.
- The government aims to give access of select data sets to the private sector and analytical agencies on payment basis, thus generating revenue from data which may otherwise have remained unused. It will also generate insights and new products for both parties, thus creating a win-win situation.
Data localization is the act of storing data on any device that is physically present within the borders of a specific country where the data was generated.
Why data localization is necessary for India?
- For securing citizen’s data, data privacy, data sovereignty, national security, and economic development of the country.
- Recommendations by the RBI, the committee of experts led by Justice BN Srikrishna, the draft ecommerce policy and the draft report of the cloud policy panel show signs of data localisation.
- The extensive data collection by technology companies, has allowed them to process and monetize Indian users’ data outside the country. Therefore, to curtail the perils of unregulated and arbitrary use of personal data, data localization is necessary.
- Digital technologies like machine learning (ML), artificial intelligence (AI) and Internet of Things (IoT) can generate tremendous value out of various data. It can turn disastrous if not contained within certain boundaries.
- With the advent of cloud computing, Indian users’ data is outside the country’s boundaries, leading to a conflict of jurisdiction in case of any dispute.
- Data localization is an opportunity for Indian technology companies to evolve an outlook from services to products. International companies will also be looking at the Indian market, and this will benefit the growth of the local ecosystem.
- More data centres in India could mean new, power-hungry customers for India’s renewable energy market. That means Data localisation could boost India’s renewable energy.
Policies that imply data localization:
- The Srikrishna Committee wants to localise data for law enforcement to have easy access to data, to prevent foreign surveillance, to build an artificial intelligence ecosystem in India, and because undersea cables through which data transfers take place are vulnerable to attacks.
- In April, the Reserve Bank of India imposed a hard data localisation mandate on payment systems providers to store payment systems data only in India.
- Barring limited exceptions, telecom service providers are not allowed to transfer user information and accounting information outside India.
- Goals set in the Draft National Digital Communications Policy 2018, and the Guidelines for Government Departments for Contractual Terms related to Cloud Storage 2017, draft e-commerce policy and the draft report of the cloud policy panel show signs of data localization.
Concerns / Challenges:
- Several of the recommendations in including the draft e-commerce policy, falter on a key ground like they gloss over the negative economic impact of data localization. This approach exhibits lack of evidence-based policy making.
- Having data in India does not mean that domestic companies will be able to access this data. Localization might aid the growth of the data centre and the cloud computing industry in India, but as matter of wider public policy, such an approach is extremely myopic.
- Mandating localization is less of a solution for data protection and might be less relevant to promote e-commerce.
- Given the comparative trade advantages enjoyed by one section of Indian industry in this context, mandating a strict data localization regime could be perceived as a restrictive trade barrier and spur retaliatory measures.
- There is a possible rise in prices of foreign cloud computing services in case of a data localisation, and its impact on MSMEs as well as start-ups relying on these services.
- The possibility of triggering a vicious cycle of data localisation requirements by other countries as a response to India’s possible data localisation will be detrimental for the global data economy.
- Growth will be restricted if data cannot be aggregated internationally. Infrastructure in India for efficient data collection and management is lacking.
Need of the hour:
- There is an urgent need to have an integrated, long-term strategy for policy creation for data localisation.
- Data localisation needs to integrate a wide range of social, political and economic perspectives.
- Creating an opportunity for local data centres all over the country.
- Devising an optimal regulatory and legislative framework for data processors and data centres operating in the country.
- Adequate infrastructure in terms of energy, real estate, and internet connectivity also needs to be made available for India to become a global hub for data centres.
- Adequate attention needs to be given to the interests of India’s Information Technology Enabled Services (ITeS) and Business Process Outsourcing (BPO) industries, which are thriving on cross border data flow.
Justice Shreekrishna committee recommendation
- The committee recommends that processing (collection, recording, analysis, disclosure, etc) of personal data should be done only for “clear, specific and lawful” purposes. Only that data which is necessary for such processing is to be collected from anyone.
- Government access to data
- Right to forget – ble to restrict or prevent any display of their personal data once the purpose of disclosing the data has ended, or when the data principal withdraws consent
- Personal data will need to be stored on servers located within India, and transfers outside the country will need to be subject to safeguards. Critical personal data, however, will only be processed in India.
Data protection bill
- Bar collection and processing without consent
- Data concerning health services and for complying with any law or court orders can be processed without the consent of the owner, the draft bill said. Data can also be transferred outside India in case of health or emergency services
- The legislation empowers the Central government to exempt government agencies from the application of the Act for “certain” processing of personal data.
- Government may direct data processor to provide any personal data to enable better targeting of delivery of services or formulation of evidence-based policies.
- Right to erase
- E-KYC for social media
- Composition is dominated by the government, as contrasted with the diverse and independent composition as suggested in the committee’s draft.
- The second difference is that there is a blanket power of exemption from all provisions of the law in favor of government agencies
- Health data
PPP can be done by using
- Joint venture
- Company with shares
- Private player after time limit once investment is recovered transfer it to the govt
- Government finances project
Build Lease Transfer
- Brownfield projects
Hybrid Annuity Model
- 40 govt pays
- 60 managed by private player
- Np wait for advt
- Give proposal
- Other player challenges
- Chance for original player for changes
- Corruption, Non transparency – Vijay Kelkar
VGF – When project is not profitable
- Land acquisitions difficulties
- Fall in demand -> Extention demanded by private players
- NBFC crisis
- Exclusion of poorts
Great demographic divide – 1921 population declined
- Decadal population growth – 17.7%
- Population growth rate – Birth rate – death rate (0 at stabilized level or replacement level)
Total fertility rate
- How many babies would she have produced hypothetically after certain age
- 2.1 is replacement level
Dependency ratio – (0-15 & 65+)/(15-65)
Why demographic change?
- Continued urbanisation
- Improvement in health care -> Declined IMR
- Family planning, birth control -> government methods
- Socio economic drivers
Indian demography will be at peak in 2041
50% below age of 25 & 65% below 35
- MMR 130 (70)
Factors responsible for poverty
- Low education
- Health -> Out off pocket expenditure
- Insurance cover
- Historical -> Low asset base
- Lack of financial literacy
- Social barriers for SC/ST/Women/Minorities
India Gini coefficient degraded from 81% to 85% (Recheck )
UBI – Providing some of money periodically irrespective of their income
- Reduce market distortion
- PAN card linking to bank account could exclude middle class and rich
- Safety net
- Laxiness promoted
- Political pressure to increase amount -> Fiscal pressure
Skill India Mission
400 million people by 2022.
38 Lakh candidates enrolled
Issues with skill India
- Policies and initiatives related to skill development are spread across nearly 20 ministries and hence lacks coherency and holistic approach
- Poor industry linkages
- Semi skills not futuristic
- Sharing of fruits of socio-economic development with all sections of the society.
- The richest 1% in India cornered 73% of the wealth generated in the country last year
- Digital payments in the country have witnessed a Compound annual growth rate of 61% and 19% in terms of volume and value respectively over past five years, demonstrating a steep shift towards digital payments.
National Infra pipeline
- 100 lakh crore
- economic and social infrastructure projects
- Curb Departmentalism
- Better personnel management – Promotion