The State of India’s Informal Economy   

NSSO Survey Outcomes (2021-22 and 2022-23): Key Points

Overview:

• Economic Shocks: Significant impact from demonetisation (Nov 2016), GST implementation (Jul 2017), and the COVID-19 pandemic (Mar 2020) on India’s economy.

About NSSO:

• Role: Conducts large-scale nationwide surveys on socio-economic aspects (employment, consumption, health, education).
• Purpose: Provides essential data for policy and planning.
• Merger: Merged with Central Statistical Office in 2019 to form the National Statistical Office.

Key Highlights:

• Economic Shocks: Major economic events have had a lasting impact.
• Employment Trends:
  • Decline in informal sector employment over seven years.
  • Around 16.45 lakh jobs lost.
• Sectoral Dynamics:
  • Unincorporated manufacturing sector contracted by 9.3%.
  • Number of enterprises reduced from 19.7 million (2015-16) to 17.82 million (2022-23).

Unincorporated Enterprises:

• Informal businesses not legally registered.
• Include MSMEs, household units, own-account enterprises, partnerships.
• Operate outside formal regulatory frameworks but significantly contribute to employment and economic activity.

Importance of Survey Results:

• Timely Insights: Provide current data on the informal sector’s role in job creation, especially during economic downturns.
• Impact Assessment: Detailed analysis of economic events’ effects on the informal sector, highlighting vulnerabilities and resilience.
• Policy Relevance: Inform policy to support and regulate the informal sector, addressing its unique challenges and contributions.

Pattern of Informal Employment Across States:

• Mixed Pattern: 16 out of 34 states/UTs recorded a decline in informal sector workers from 2015-16 to 2022-23.
• GST Impact:
  • 63 lakh informal enterprises shut down due to GST (2015-16 to 2022-23).
  • Loss of about 1.6 crore jobs.
• COVID-19 Impact:
  • Number of informal enterprises decreased from 50.32 lakh (85.6 lakh workers) in Apr-Jun 2021 to 1.91 crore firms (3.12 crore employees) in Jan-Mar 2022.

Way Forward:

• Support and Incentives: Government should provide targeted support to help informal enterprises adapt post-GST and post-pandemic.
• Transition to Formal Sector: Policymakers should facilitate a gradual transition of informal enterprises to the formal sector.

How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (2016)

Choosing the right track to cut post-harvest losses

India’s Agricultural Production and Post-Harvest Losses

Global Position:

• Second-Largest Producer: India ranks as the second-largest agricultural producer globally.
• Export Share: Accounts for only 2.4% of global agricultural exports, ranking eighth due to post-harvest losses.

Post-Harvest Losses:

• Economic Impact: Annual losses of approximately ₹1,52,790 crore, affecting farmer incomes and the agricultural economy.
• Perishable Commodities:
  • Livestock produce: 22% losses.
  • Fruits: 19% losses.
  • Vegetables: 18% losses.
• Supply Chain Inefficiencies: Issues in storage, transportation, marketing, and market connectivity.
  • Small and marginal farmers (86% of the farming community) struggle with economies of scale and market access.

Railways Department Initiatives:

• Truck-on-Train Service: Transports loaded trucks on railway wagons, expanded after successful trials with milk and cattle feed.
• Parcel Special Trains: Introduced during COVID-19 to transport perishables and seeds, ensuring timely delivery and reducing losses.
• DFI Committee Recommendations: Streamline loading/unloading processes, minimize transit times, and address staffing shortages through recruitment and training.
• Kisan Rail Scheme: Connects production surplus regions with consumption regions for efficient transport of perishables like milk, meat, and fish.
• Specialized Wagons and Facilities: Investments in temperature-controlled wagons and rail-side facilities for safe cargo handling.

Untapped Opportunities:

• Environmental Benefits: Rail transport generates up to 80% less carbon dioxide for freight compared to road transport.
• Public-Private Partnerships: Enhance operational efficiency and rail infrastructure through collaborations, improving the logistics ecosystem for agricultural produce.
• Budgetary Support and Infrastructure Development: 2024 budget allocation aims to bridge the farm-to-market gap with modern infrastructure and value-addition support.
• Technology Integration: Implement advanced technologies like real-time tracking, temperature monitoring, and automated loading/unloading systems.

Way Forward:

• Expand Climate-Controlled Storage: Increase storage capacity for agricultural produce.
• Access for Small Farmers: Provide storage facilities through cooperatives or subsidies for small and marginal farmers.
• Invest in Specialized Wagons: Develop temperature-controlled rail wagons and establish rail-side cargo handling facilities.

How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (2017)

INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO)

 India to Host Second Asia Pacific Ministerial Conference on Civil Aviation

Event Details:

• Dates: September 11-12
• Participants: 39 member states from the Asia Pacific region, part of the U.N. aviation safety body, International Civil Aviation Organisation (ICAO)

Background on ICAO:

• Agency: Specialized agency of the United Nations
• Established by: Convention on International Civil Aviation (Chicago Convention)
• Purpose:
  • Coordinates principles and techniques of international air navigation
  • Fosters planning and development of international air transport for safe and orderly growth
• Headquarters: Quartier international de Montréal, Montreal, Quebec, Canada
• Functions:
  • Adopts standards and recommended practices for air navigation, infrastructure, flight inspection, prevention of unlawful interference
  • Facilitates border-crossing procedures for international civil aviation
• Authority: Sole international authority vested with international air transport regulations among signatory states

INDIAN LEOPARD

 Indian Leopard (Panthera pardus fusca) Decline

• Decline Rate: 24.5% decline over the last three generations
• Assessment By: International Union for Conservation of Nature (IUCN)
• Causes: Suspected from range loss and inferred levels of exploitation

Background on Indian Leopard:

• Subspecies: Panthera pardus fusca, a subspecies of the leopard (P. pardus)
• Distribution: Widely distributed on the Indian subcontinent
• Subspecies Recognition: Nine subspecies of leopard recognized, distributed across Africa and Asia
• Characteristics:
  • Size: Smallest of the big cats
  • Adaptability: Known for its ability to adapt to a variety of habitats
  • Melanism: Common occurrence; melanistic leopards (black panthers) often mistaken for a different species
• Behavior:
  • Nocturnal: Hunts by night
  • Diet: Feeds on smaller herbivores like chital, hog deer, and wild boar
  • Agility: Extremely agile, prefers resting on trees
• Conservation Status:
  • IUCN Classification: Near Threatened
  • Indian Wildlife (Protection) Act, 1972: Listed in Schedule I
  • CITES: Included in Appendix I

INDIA YOUNG PROFESSIONAL SCHEME 2024

UK Announces Second Ballot for India Young Professional Scheme 2024

Background:

• Allocation: 3,000 places for 2024
• First Ballot: Most spots filled in February 2024
• Second Ballot:
  • Opened: July 16, 2024, at 13:30 Indian Standard Time
  • Closes: July 18, 2024, at 13:30 Indian Standard Time

About India Young Professional Scheme 2024:

• Purpose: Youth mobility scheme for Indian nationals
• Duration: Live, work, and study in the UK for up to two years
• Announcement: Made at the G20 summit in Bali, November 2022
• Launch: Formally launched in February 2023
• Eligibility:
  • Up to 3,000 degree-holding citizens aged 18-30 from each country
  • Requirements:
    • Aged between 18-30 years old (or turning 18 by the travel date)
    • Hold a bachelor’s degree or higher
    • Savings of GBP 2,530
    • No dependent children