In News:

India's semiconductor market is poised to exceed $100 billion by 2030, according to a report from the India Electronics and Semiconductor Association and Counterpoint Research. Currently valued at $45 billion in 2023, the market is projected to grow at an annual rate of 13%, driven by demand in mobile handsets and IT sectors, which together account for over 75% of revenues.

Key Highlights:

• Growth Drivers: The growth is supported by strong demand for electronics and government initiatives like the production-linked incentive scheme. Semiconductors are essential for various industries, including electronics, defense, healthcare, and automotive.
• Importance of Semiconductors: These materials, which include silicon and germanium, are crucial for electronic devices. They can conduct electricity under certain conditions, making them fundamental in transistors, integrated circuits, and devices like LEDs and solar cells.
• Global Context: The global semiconductor supply chain has shown vulnerabilities, particularly during the chip shortage of 2021. Major producers include Taiwan (44% market share), China (28%), South Korea (12%), the U.S. (6%), and Japan (2%). Countries are now focusing on building domestic chip industries to reduce dependency on a few key suppliers.

Factors Favoring India's Growth in Semiconductors:

1. Skilled Workforce: India has a vast pool of STEM graduates, providing a skilled workforce for semiconductor manufacturing and design.
2. Cost Advantage: Lower labor costs and efficient supply chains position India favorably for semiconductor manufacturing.
3. Supply Chain Diversification: India is becoming a hub for back-end assembly and testing operations, with potential for front-end manufacturing.
4. Government Support: Initiatives like Semicon India and the India Semiconductor Mission aim to create a robust semiconductor ecosystem, offering substantial fiscal incentives for companies.

Government Initiatives:

• Semiconductor Fab Scheme: Provides 50% project cost support for semiconductor manufacturing.
• Display Fab Scheme: Offers similar support for display manufacturing.
• Chips to Startup (C2S) Programme: Trains 85,000 engineers across academic and R&D institutions.
• Recent approvals for the establishment of semiconductor plants in Gujarat and Assam further bolster this initiative.

In News:

• The Prime Minister commended the completion of three years of the PM GatiShakti National Master Plan, calling it a transformative initiative for India’s infrastructure development.
• Key Benefits: The plan enhances multimodal connectivity and improves efficiency across various sectors, contributing to logistics, job creation, and innovation.

Overview of PM GatiShakti National Master Plan

• Launch Date: October 2021
• Objective: A transformative initiative worth ?100 lakh crore aimed at revolutionizing India’s infrastructure over five years.
• Development Tool: Created as a Digital Master Planning tool by the Bhaskaracharya National Institute for Space Applications and Geoinformatics (BISAG-N).
• GIS Platform: Utilizes a dynamic Geographic Information System to integrate action plans from various ministries into a comprehensive database.
• Goals: Accelerate project completion, reduce timelines, and enhance India’s global competitiveness by addressing inter-ministerial challenges.

Key Features

• Digital Integration: A digital platform coordinating the efforts of 16 ministries for seamless infrastructure planning.
• Multi-Sector Collaboration: Incorporates initiatives from major programs like Bharatmala and Sagarmala.
• Economic Zones Development: Focuses on key areas such as textile clusters and pharmaceutical hubs to boost productivity.
• Technology Utilization: Employs advanced spatial planning tools and ISRO satellite imagery for data-driven project management.

Core Sectors Driving the Plan

• The National Master Plan is centered around seven primary sectors that enhance economic growth and connectivity, supported by sectors like energy transmission and social infrastructure.

Six Pillars of PM GatiShakti

1. Comprehensiveness: Integrates various initiatives through a centralized portal, ensuring efficient planning.
2. Prioritisation: Allows ministries to prioritize projects based on national importance and resource allocation.
3. Optimisation: Identifies infrastructure gaps and selects the most efficient transportation routes.
4. Synchronisation: Ensures coordinated efforts across ministries to avoid delays.
5. Analytical Capabilities: Offers extensive data layers for improved spatial planning and decision-making.
6. Dynamic Monitoring: Uses satellite imagery for real-time project tracking and adjustments.

Achievements of PM GatiShakti

• District-Level Expansion: Extended to 27 aspirational districts, with plans for 750 in the near future.
• Technological Integration: Enhanced real-time infrastructure planning using geospatial tools.
• Global Outreach: The GatiShakti tool showcased to 30 countries and highlighted at international conferences.
• Social Sector Benefits: Identified areas for new healthcare facilities and improved planning in various districts.
• Rural and Urban Development: Implemented projects for irrigation and city logistics in multiple states.
• Employment Initiatives: Utilized for setting up training institutes near industrial clusters.

In News:

• The Indian government plans to align indicators of the BRAP 2024 index with the World Bank’s B-READY index to enhance business readiness rankings.
• State Involvement: States have been instructed to address gaps identified in the B-READY evaluations to improve their global rankings.
• Indicators Included: The upcoming 2024 BRAP rankings, prepared by the Department for Promotion of Industry and Internal Trade, will incorporate specific indicators from the B-READY index.
• Enterprise Survey Launch: An enterprise survey for the B-READY index in India is set to start in October, with support from the Ministry of Statistics and Programme Implementation.
• Participation Timeline: Although B-READY rankings will commence in 2024, India’s participation will begin in 2026. The initial rankings will cover 54 countries, expanding to 120 in 2025 and 180 in 2026.
• Successor to Previous Rankings: The B-READY index replaces the Ease of Doing Business rankings, which were discontinued in 2021 due to irregularities. It considers a broader range of factors in its assessments.
• Benchmark for Global Institutions: The B-READY framework will serve as a benchmark for global financial institutions and multinational companies to evaluate a country’s regulatory and policy environment.
• Historical Improvement: India improved its Ease of Doing Business ranking from 142 in 2014 to 63 in 2020.
• Technical Understanding: A team of government officials is tasked with understanding the technical aspects of the B-READY index to formulate strategies for improving India’s score.
• Lifecycle Parameters: The new index tracks ten parameters throughout a firm's lifecycle, including business entry, utility services, and labor, focusing on real-world applications rather than just legal changes.
• Recent BRAP Rankings: The BRAP 2022 rankings were recently announced, with Andhra Pradesh and Kerala achieving the top positions.

In News:

The central government launched the five-year Cruise Bharat Mission, aiming to boost cruise tourism in India to 1 million passengers and create 400,000 jobs by 2029.

Mission Goals

• Passenger Traffic: Increase from 0.5 million to 1 million sea cruise passengers by 2029.
• River Cruise Passengers: Grow from 0.5 million to 1.5 million.
• Job Creation: Generate 400,000 jobs in the cruise sector.
• Infrastructure Expansion:
  • International cruise terminals: From 2 to 10.
  • River cruise terminals: From 50 to 100.
  • Marinas: From 1 to 5.

Implementation Phases

1. Phase 1 (2024-2025):
   • Conduct studies and master planning.
   • Form alliances with neighboring countries.
   • Modernize existing cruise terminals and destinations.
2. Phase 2 (2025-2027):
   • Develop new cruise terminals and marinas.
   • Activate high-potential cruise locations.
3. Phase 3 (2027-2029):
   • Integrate cruise circuits across the Indian Subcontinent.
   • Continue developing infrastructure and enhancing cruise experiences.

Strategic Focus Areas

• Sustainable Infrastructure:
  • Develop world-class terminals, marinas, and water aerodromes.
  • Emphasize digitalization (e.g., facial recognition) and decarbonization (shore power).
  • Create a National Cruise Infrastructure Masterplan 2047.
• Operational Efficiency:
  • Streamline operations using digital solutions (e.g., e-clearance and e-visa facilities).
• Cruise Promotion & Circuit Integration:
  • Focus on international marketing and investment.
  • Host events like the "Cruise India Summit."
  • Form alliances with neighboring countries (UAE, Maldives, Singapore).
• Regulatory and Financial Policies:
  • Establish tailored fiscal and financial policies.
  • Launch a National Cruise Tourism Policy.
• Capacity Building & Employment:
  • Create a Centre of Excellence for cruise-related economic research.
  • Develop National Occupational Standards to enhance youth employment opportunities.

Expected Outcomes

• Tourism Growth: Position India as a global cruise destination.
• Cultural Promotion: Highlight the cultural, historical, and natural heritage of Bharat through cruise circuits.
• Community Benefits: Ensure inclusive growth for local communities and stakeholders in the cruise sector.

The Cruise Bharat Mission is set to redefine India's cruise tourism landscape, focusing on infrastructure development, operational efficiency, and promoting cultural heritage, while ensuring economic growth and job creation for the future.

In News:

• NPCI International Payments Limited (NIPL) has partnered with Trinidad and Tobago's Ministry of Digital Transformation to create a payment platform for person-to-person and person-to-merchant transactions.
• Modeling on UPI: The new digital payments system will be based on India’s Unified Payments Interface (UPI), which is widely recognized as a leading digital payment solution.
• Role of NPCI: NIPL, a quasi-government body under the Reserve Bank of India, manages India’s retail payment systems, including UPI.

Previous Initiatives

• Global Expansion: Earlier in 2024, NIPL also committed to establishing digital payment systems in Peru and Namibia, leveraging the UPI model.
• Ongoing Talks: NIPL is exploring opportunities with additional countries in Africa and South America to assist in building their payment infrastructures.

Significance:

• UPI has emerged as a transformative force in India's financial landscape, registering nearly 15 billion transactions in August 2024, with an estimated value of USD 245 billion.
• This strategic partnership aims to empower Trinidad and Tobago to establish a reliable and efficient real-time payments platform for both person-to-person (P2P) and person-to-merchant (P2M) transactions, expanding digital payments in the country and fostering financial inclusion.

In News:

The “Make in India” initiative has completed 10 years. It was launched by Prime Minister Narendra Modi on September 25, 2014.

KEY TAKEAWAYS:

• The ‘Make in India’ campaign aims to facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class manufacturing infrastructure.
• “Make in India” was designed to transform India into a global hub for design and manufacturing.
• Seen as an important ‘Vocal for Local’ initiative, its objective is twofold. Firstly, to boost India’s manufacturing capabilities and secondly to showcase its industrial potential on a global stage.
• The “Make in India 2.0” phase encompassing 27 sectors – both manufacturing and service. 

4 pillars of “Make in India” initiative: 

• New Processes: To enhance the business environment, promote entrepreneurship and startups – ‘ease of doing business’ became a crucial factor.
• New Infrastructure: Development of industrial corridors, smart cities, integrating state-of-the-art technology and high-speed communication to create world-class infrastructure, improving intellectual property rights (IPR) infrastructure etc. 
• New Sectors: Opening of Foreign Direct Investment (FDI) in sectors like Defence Production, Insurance, Medical Devices, Construction, and Railway infrastructure. 
• New Mindset: In order to support industrial growth and innovation – the government embraced a role as a facilitator rather than a regulator. The Government partners with industry in the economic development of the country. 

Key Initiatives to enable Make in India initiative

Production linked Incentive (PLI) Schemes: The primary goals of the PLI Schemes are to attract substantial investments, incorporate advanced technology, and ensure operational efficiency. These schemes cover 14 key sectors aimed at fostering investment in cutting-edge technology and promoting global competitiveness.

PM GatiShakti: It is a strategic initiative aimed at achieving Aatmanirbhar Bharat and a US $5 trillion economy by 2025 through the creation of multimodal and last-mile connectivity infrastructure. PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by 7 engines, namely:

1. Railways
2. Roads
3. Ports
4. Waterways
5. Airports
6. Mass Transport
7. Logistics Infrastructure

Semiconductor Ecosystem Development: It encompasses four key schemes:

1. Modified Scheme for Setting Up Semiconductor Fabs in India
2. Modified Scheme for Setting Up Display Fabs in India
3. Modified Scheme for Setting Up Compound Semiconductors, Silicon Photonics, Sensors Fabs, and Discrete Semiconductors, along with Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) / OSAT Facilities in India
4. Design Linked Incentive (DLI) Scheme

It aims to foster the development of a sustainable semiconductor and display ecosystem in the country. 

The Semicon India Programme aims to provide a significant impetus to semiconductor and display manufacturing by facilitating capital support and promoting technological collaborations. 

National Logistics Policy: Introduced to complement the PM GatiShakti National Master Plan. It focusses on enhancing the soft infrastructure of India’s logistics sector. 

The Comprehensive Logistics Action Plan (CLAP) was rolled out. The key areas which it addresses are logistics systems, standardization, human resource development, state engagement, and logistics parks.

The National Industrial Corridor Development Programme: Aims to create “Smart Cities” and advanced industrial hubs.

Startup India: Several programs aimed at supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers were rolled out.

Implementation of the Goods and Services Tax (GST): As India’s tax reforms, it is seen as crucial in the context of the Make in India initiative.

Unified Payments Interface: For India’s digital economy growth, it is seen as one of the key initiatives to enable ease of doing business. 

Ease of Doing Business: The efforts aim to simplify regulations, reduce bureaucratic hurdles, and create a more business-friendly environment, significantly boosting investor confidence and supporting the objectives of the Make in India initiative.

Why is it in the News?

PM Modi recently inaugurated the Sudarshan Setu, a four-lane cable-stayed bridge connecting Okha to Beyt Dwarka island in Gujarat.

About the Sudarshan Setu:

• 'Sudarshan Setu' is the country's longest cable-stayed bridge 2.32 km on the Arabian Sea connecting Beyt Dwarka island to mainland Okha in Gujarat's Devbhumi Dwarka district.
• It boasts a unique design, featuring a footpath adorned with verses from the Bhagavad Gita and images of Lord Krishna on both sides.
• It also has solar panels installed on the upper portions of the footpath, generating one megawatt of electricity.
• The 2.32 km bridge, including 900 metres of a central double-span cable-stayed portion and a 2.45 km long approach road, has been constructed at a cost of Rs 979 crore.

About Beyt Dwarka:

• Bet/Beyt (pronounced ‘Bait’ Dwarka also known as Shankhodara, is an island located near the shores of Okha which is situated around 30 km from Dwarka, in the Gulf of Kutch.
• It said that Lord Krishna resided here while Dwarka was his constitutional seat.

History:

• Bet Dwarka derived its name from the word ‘bet’ which translates to ‘gift’ and is believed that Lord Krishna received it from his friend Sudama.
• In the ancient epic, Mahabharata, Bet Dwarka is known by the name of ‘Antardvipa’ to which people of the Yadava clan needed to travel by boat.
• Explorations and excavations carried out under the sea have revealed the presence of settlements whose age can be traced back to the era of the Harappan civilisation and that of the Mauryan rule.
• In the later years, the region was under the administration of the Gaekwad clan of the state of Baroda.
• During the revolt of 1857, Vaghers attacked the region and captured it, but had to concede defeat in two years and return the region back to the Gaekwads.

Why is it in the News?

Fresh measures to curb unauthorised online lending apps’ operations could be on the anvil, following deliberations on the issue at the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman recently.

About the Financial Stability and Development Council (FSDC):

• The Financial Stability and Development Council (FSDC) is a high-level body established by the Government of India in 2010 to address macroeconomic and financial stability issues.
• Although not a statutory body, it operates under the Financial Stability Division of the Department of Economic Affairs within the Ministry of Finance.

Background:

• In response to the global financial crisis of 2008, recommendations were made by the Raghuram Rajan Committee for the creation of a centralised regulatory body to oversee India's financial system.
• The establishment of FSDC reflects India's proactive approach to enhance preparedness for future financial challenges.

Composition:

• Chaired by the Union Finance Minister, the council comprises key stakeholders including the Governor of the Reserve Bank of India (RBI), finance and economic affairs officials, regulatory body chairpersons, and other relevant authorities.
• The Secretary of the Department of Economic Affairs serves as the council's secretary.

Responsibilities:

• FSDC is entrusted with the task of promoting financial stability, coordinating policy responses to systemic risks, and fostering the development of India's financial sector.

Concerns and Future Directions:

• Concerns have been raised about potential encroachment on the autonomy of sectoral regulators due to FSDC's leadership by the Union Finance Minister.
• To address this, it's crucial to safeguard the independence of regulatory bodies and establish clear guidelines to ensure effective coordination without undermining regulatory authority.

What is Digital Lending?

• Digital lending refers to the process of accessing credit online, facilitated through web platforms or mobile applications.
• This approach leverages technology across various stages of the lending process, including customer acquisition, credit assessment, approval, fund disbursement, recovery, and customer service.

Key Features:

• Utilises technology for end-to-end lending operations, enhancing efficiency and accessibility.
• Offers flexibility in credit options and facilitates swift transactions, appealing to modern borrowers.
• Prominent examples include Buy Now, Pay Later (BNPL) schemes, which provide short-term financing for purchases, allowing consumers to defer immediate payments.

Drivers of Growth:

• Increased adoption is driven by widespread smartphone usage and the convenience of online transactions.
• Flexibility in credit offerings and simplified application processes contribute to the popularity of digital lending platforms.
• BNPL services, in particular, cater to consumers seeking deferred payment options for purchases and services.

Why is it in the News?

The Cabinet Committee on Economic Affairs recently approved ?340/quintal as the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2024-25 at a sugar recovery rate of 10.25%.

What is the Fair and Remunerative Price (FRP)?

• FRP was introduced by the government in 2009 by an amendment to the Sugarcane (Control) Order, 1966.
• It replaced the Statutory Minimum Price (SMP) on the Commission for Agricultural Costs and Prices (CACP) consultation.
• The FRP system assured timely payment to farmers, irrespective of the profit and loss to sugar mills.
  • Further, the new system made it mandatory for sugar mills to pay the farmers within 14 days of delivery of sugarcane.
• Additionally, the FRP system introduced grading on the basis of sugar recovery rate from sugarcane wherein a premium was paid to the farmer on higher recovery and a reduction in rates on lower recovery.
• The FRP is based on the Rangarajan Committee report on reorganising the sugarcane industry.

Factors Considered for Announcing FRP:

• • Cost of production of sugarcane
  • Return to the growers from alternative crops and the general trend of prices of agricultural commodities
  • Availability of sugar to consumers at a fair price
  • The price at which sugar produced from sugarcane is sold by sugar producers
  • Recovery of sugar from sugarcane
  • The realisation made from the sale of by-products viz. molasses, bagasse and press mud or their imputed value
  • Reasonable margins for the growers of sugarcane on account of risk and profits

Effect of the New FRP:

• Sugar production in India was hit hard in the October-December 2023 quarter as production fell by 11.21 million metric tonnes;
  • It was 12 million in the same quarter the previous year.
  • The increase in FRP is going to increase the cost for producers.
• The increased FRP will benefit over five crore sugarcane farmers in the country, however, the increase in production cost could affect end-consumers as well.
• Factors such as FRP hikes, akin to MSP, make it attractive to farmers but also increase prices in the local market as mills pass on that cost to consumers