Digital Rupee vs RBI’s CBDC

Digital transactions in India are seeing unprecedented growth and indeed for a large chunk of the population, rupee has become digitised. In this context, RBI’s Central Bank Digital Currency (CBDC) becomes nuanced for really appreciating its usefulness. One advantage of digital currency could be segregation of spending from savings. CBDC is likely to act as only a spending instrument, and become the catalyst for efficiency enhancement of the informal sector.

Presently, ₹ is both an instrument of savings as well as for spending, and the dual role makes the availability of banking services vital for efficient business operations. Present digital transactions are facilitated by commercial and other banking service providers. This leaves unbanked or difficult banking experiencers like those dwelling in slums and remote villages vulnerable to the VUCA world.

One of the unfortunate realities of rapid pace of urbanisation is slum dwelling in Cities. People migrating from rural settlements to more informal settlements in and around the city in bids to find work are subjected to a highly volatile business environment. Even if there is no wage or price earning opportunity, informal sector workers still have the goods and services to offer to each other, but nobody has money to pay for them. With no buffer and no surplus money to inject into the informal sector, availability of wage earning tasks in season and thereafter no source of income creates huge uncertainty. This is where a coupon-like setup provided by CBDC can save the day. One underlying case study can be the use of Bangla Pesa in Kenyan slums.

As Bangla Pesa is entering the 10th year of its existence, it has become a role model for poverty alleviation. Mombasa has more than 60k Bangladeshi slum dwellers who have used a complimentary voucher system by the name of Bangla Pesa which uses M-Pesa APP to transact in this alternative currency. Slum dwellers had goods and services but no money at all, thereby wasting time and rotting goods. Bangla Pesa came into being as a real measure of value of goods and services allowing a barter system to evolve instead of wasted opportunities. Users say that, “You can’t steal Bangla Pesa and it has no corruption. You take money to get rich but not to eradicate poverty. Use of Bangla Pesa indicates somebody who doesn’t have money is going to get help.”

Use cases of CBDC can be built around the experiences of Bangla Pesa. Not to mention that RBI taking direct liability and making this token based, solves a major issue of cryptocurrencies i.e. Transactional Privacy. DBT transactions can become more efficient and effective using such CBDC and not to forget the benefits manifesting to a local villager who will no longer need to travel distances to receive cash from the bank and also pay high percentages as remittances charges.

Ways and means to skill, re-skill and up-skill

Citizens of modern world, the inter-connected Global village, are always amazed to see the still prevalent rot method of learning and lack of choices around curriculum to citizens of developing and under-developed countries. Perhaps this educational disadvantage is the prime reason of backwardness in the first place. India is taking decisive action in removing this lacuna.

Adopting a strategic response to fast changing skill demands Government of India is working on a plan to have 10,000 to 15,000 courses from present 4,500 courses These courses are meant for skilling, up-skilling and re-skilling of lakhs of youth setting up enterprises and knocking the job market every year. To build a resilient mechanism for education delivery, ‘one class-one TV channel’ programme of PM eVIDYA will be expanded from 12 to 200 TV channels, which will enable all states to provide supplementary education in regional languages for classes 1-12. A Digital University is also being established to provide access to students across the country for world-class quality universal education with personalised learning experience at their doorsteps. This will be made available in different Indian languages and ICT formats. The best public universities and institutions in the country will collaborate as a network of hub-spokes.

Aim is to skill, re-skill and up-skill on a large scale with speed and high standards in order to achieve vision of a ‘Skilled India’ through collaborations with relevant Central Ministries, State governments, international organizations, industry bodies, NGOs and relevant Government institutions, namely, Directorate General of Training (DGT), National Skill Development Agency (NSDA), National Council for Vocational Education and Training (NCVET), National Skill Development Corporation (NSDC), National Skill Development Fund (NSDF) and 38 Sector Skill Councils (SSCs) as well as 33 National Skill Training Institutes (NSTIs/NSTI(w)), around 15,000 Industrial Training Institutes (ITIs) under DGT and 187 training partners registered with NSDC.

Earlier, the Union Budget 2022 also stated that the skilling programme and partnership with the respective industry will be reoriented to promote continuous skilling avenues, sustainability and employability, and National Skill Qualification Framework (NSQF) will be aligned with dynamic industry needs. “Digital Ecosystem for Skilling and Livelihood-the DESH-Stack e-portal, will also be launched. This portal aims to empower citizens to skill, re-skill and up-skill through online training. It will also provide API-based trusted skill credentials, payment and discovery layers to find relevant jobs and entrepreneurial opportunities. The Start-ups will be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS). In selected ITIs, in all states, the required courses for skilling, will be started,” said the Finance Minister.

Get Set for G20 Presidency

If nothing else, COVID-19 has surely taught us the meaning of ‘United we stand, divided we fall’. One of the key united fronts of major economies of current times is G20, whose members account for more than 80% of world GDP, 75% of global trade, and 60% of the global population. The Group of G20 comprises of Argentina, Australia, Brazil, Canada, China, France, India, Indonesia, Italy, Japan, Republic of Korea, Russia, Saudi Arabia, South Africa, United Kingdoms, Germany, Mexico, Turkey and European Union. India will be holding the G20 Presidency from 01 December 2022 to 30 November 2023, during which it will host the G20 Summit, first such occasion for India.

Union Cabinet has given a green signal for setting up of a G20 Secretariat and its reporting structure has been laid out. The Secretariat will be responsible for the implementation of overall policy decisions and arrangements needed for steering India’s forthcoming G20 Presidency. Its stated objective is to handle work relating to substantive/knowledge/content, technical, media, security and logistical aspects of India’s G20 Presidency.

During the 16th G20 Summit in Italy, India showcased how the country’s goal is in line with global progress. Addressing the G20 Summit in Italy, PM Modi spoke about India’s One Earth One Health vision hailing it as Pharmacy of the World. While highlighting India’s COVID-19 Vaccination journey, PM Modi sheds light on how India sets the new standard of diplomacy during the COVID-19 pandemic, particularly in the medical diplomacy field that covered at least 150 countries. During the summit, PM Modi also invited the G20 partners for supply chain diversification and global recovery from pandemic. India is currently working closely with Indonesia and Italy (a part of Troika Member)- the current, previous and incoming G20 Presidencies, to ensure consistency and continuity of the G20’s agenda.

Set up in the year 1999, to discuss global economic and financial issues, after the Asian financial crisis that wreaked havoc on economies in the region and leading to spill-over effect, G20 has become a major international forum. India being a founding member of G20 since its inception in 1999 emerged as a crucial partner for proposing new ideas and finding solutions for crucial issues. Hosting the Presidency during ‘Azadi ka Amrit Mahotsav’ makes it even more important. The democratic ethos of India and its philosophy of ‘Vasudhaiva Kutumbakam’ as demonstrated by ‘Sabka Saath, Sabka Vikas’ and Vaccine Maitri, are soothing sights to a world struggling with divisiveness and havoc of pandemic.

Museums for Democratic Musings

In the context of modern democracy, the adage “history repeats itself” is a crucial one for every person to understand and avoid mistakes of the past. One need not repeat the mistakes of the past to learn a lesson, just knowing and studying them can do the trick. This is where monuments and museums play a crucial role. India is a torch bearer for modern times, and given its rich heritage, ancient and modern history, it’s story is crucial for a sustainable, peaceful and prosperous future of the planet. For context, France became part of the EU more or less from an Empire status, and the USA, though an old state, became a true democracy only around 60 years back. As Indian democracy is celebrating ‘azaadi ka amrit mahotsav’, every citizen needs to do something towards preserving, protecting and upholding democratic values. First and foremost of these is to differentiate between ‘what is entertainment’ and ‘what is reality’ – where monuments and museums play a key role.

To a land that saw over 9 million manually-written sacred manuscripts burnt to the ground as the Nalanda University library was set ablaze for three painful long months, every article of inheritance that can preserve even a bit of India’s lost history matters.

On lines of the commitment between India and US to “combat theft, illicit trade, and trafficking of cultural objects”, US President Joe Biden returned 248 Indian antiquities to India, 157 of which were brought back to Indian soil by PM Modi (following his visit to US in September 2021). Earlier, in March 2021, the Ministry of Culture and Tourism had conveyed taht the Archaeological Survey of India had retrieved as many as 36 antiquities from foreign countries over the last five years. As for vigrahas of Gods and Godessess alone, since 1976, 55 vigrahas have been returned to India, 42 of which, including that of Goddess Annapurna, have been acquired back in the last 7 years.

Along with these retrieval efforts and upgrading existing museums, focus has also been on constructing new museums with engaging exhibits and content, leveraging modern technologies such as digital, augmented reality and virtual reality. From museums based on food security (Food Security Museum at Thanjavur) to museums featuring the Indian railways, there are over 1000s of them in the country. Museums in India have also gone digital, to not only remain relevant during the pandemic but to also use technology to its advantage. As of July 2021, more than 2.8 lakh artifacts of ten government museums and galleries under the Ministry of Culture were available online. Culture Ministry’s ‘Museum Grant Scheme’ provides financial assistance to State governments, societies, autonomous bodies, local bodies, and Trusts registered under the Societies Act for the digitization of art objects in the museums across the country for making their images/catalog available over the website for online access.

In January 2019, Prime Minister Narendra Modi inaugurated a set of 4 museums at Red Fort, one of which is dedicated to Netaji and the INA, known as Kranti Mandir. The complex includes Yaad-e-Jallian Museum on Jallianwala Bagh and World War 1, a Museum on 1857- India’s First War of Independence, and Drishyakala- a Museum on Indian Art which has 4 historical exhibitions, spanning three centuries, with over 450 works of art. Similarly, the newly built museum of Prime Ministers at Teen Murti Estate is ready now, and these efforts are important to engage every Indian towards a vibrant democracy.

MMLPs for Logistics Efficiency

“Contracts for implementation of Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-23”, announced Union Budget 2022. This is going to provide a much needed solution towards reducing logistics costs in India. It is well documented that as a proportion of the total value of goods, logistics costs are almost double in India (around 14%) as compared to developed nations( around 7%), hence there is a lot of room for improvement. This underlines the need and power of Modern logistics mechanisms, which is a lot systematic and integrated. It offers a full range of one-stop service through using IT and industry expertise extensively to support the entire supply chain, from transport, to warehousing management, to order processing, to delivery and customer service.

Multi-Modal Logistics Parks or MMLPs, a key policy initiative of the Government of India, is being led by NHAI and the National Highways Logistics Management Ltd under Ministry of Road Transport and Highways (MoRTH). It may be defined as a freight-handling facility with a minimum area of 100 acres, with various modes of transport access, mechanized warehouses, specialized storage solutions (such as cold storage), facilities for mechanized material handling, bulk and break-bulk cargo terminal, etc. In 2017, the Government of India launched a program to develop 35 MMLPs across the country. This was followed by India securing rank 44 in the World Bank’s Logistics Performance Index (LPI) 2018, wherein it competed with 160 other countries.

India has been able to climb up in the Logistics Performance Index riding on massive capacity investments made since last 4-5 years, in transport, in major policy reforms like GST and measures supporting Ease of Doing Business. Mega projects like the ambitious Bharatmala, Sagarmala, UDAN, Dedicated Freight Corridors, and other relief measures in transportation mechanisms have largely contributed in churning the Logistics and supply chain cycles.

In India, each segment of logistics encounters tricky challenges which lead to low efficiency and high cost. In order to bring this cost down MMLPs can facilitate freight aggregation and distribution, integrated storage and warehousing, seamless multimodal freight transfer, tech support, and value-added freight services. MMLPs aim to improve India’s freight logistics sector by lowering overall freight costs and time, reducing warehousing costs, cutting vehicular pollution and congestion, improving the tracking of consignments and more.

Cost of Coastal Urbanization

Budget 2022 had special focus on Urban Development. It stated, “By the time of India @ 100, nearly half our population is likely to be living in urban areas. To prepare for this, orderly urban development is of critical importance…This would require us to reimagine our cities into centres of sustainable living with opportunities for all, including women and youth. For this to happen, urban planning cannot continue with a business-as-usual approach. We plan to steer a paradigm change.” The paradox of urbanization, however developed and equipped it turns the cities into, is that it advances at the cost of upsetting the balance of nature. Large scale migration results in an acute pressure on resources, land and vexes climate. Coastal area development becomes a very critical aspect to look into.

Globally, India has one of the longest coastlines of 7,500 kilometres. As per the 2011 census, this coastline length housed over 486 urban centres and was home to around 4.17 crore Indians, a number that equals to the population of Australia and New Zealand put together. According to NASA’s Sea Level Projection tool, these coastal areas are projected to face a sea level rise of 0.1 metre to 0.3 metre in the next two to three decades & cities such as Kandla, Bhavnagar, Kochi, Mormugao, Mangalore, Mumbai, Chennai, Paradip, Visakhapatnam, etc. will be impacted by sea level rise in varying degrees. One example to highlight the urgency is that the Island country Indonesia is prepping to relocate its government offices to the province of East Kalimantan, following its plan to move the national capital there from Jakarta. Apart from the intent of redistribution of wealth, the move aims to give relief to an overcrowded and brimmingly congested Jakarta, a city which suffers regular flooding. With its northern parts falling at an estimated 25cm a year, due to subsidence, Jakarta has become one of the fastest sinking cities in the world due to over extraction of groundwater.

Unlike Indonesia, the problem is even deeper and grievous for India, with the world’s second largest population and an entire peninsula to shield. For example, A UNESCO World Heritage Site, the Sundarbans Biosphere Reserve, which lies soaked and half-sunk, is another example indicating the dangers of rapidly rising sea levels. From rising water level, to cyclones, the area, its people, its flora and fauna are constantly living in the fear of getting wiped out. The beautiful Mangrove forests of the sunken and cracked Sunderbans are fast depleting causing the Bengal tigers, over 250 bird species and the Indian python to lose their homes. The land situation has also pushed the Irawadi dolphins, estuarine crocodiles, Batagur baska, etc. on the verge of extinction.

Beginning from a proper study of present systems, the task is to chart out fresh plans to develop a modern strategic infrastructure for proper drainage across target cities with the help of state governments, scientific institutions and other concerned bodies. Continuous weather and wave alerts, however mild they may seem now, make such an undertaking a matter of utmost importance. Hence, it is a welcome move when GoI proposed that, “A high-level committee of reputed urban planners, urban economists and institutions will be formed to make recommendations on urban sector policies, capacity building, planning, implementation and governance.”

Tractors and Drones for Agri-Innovations

In Union Budget 2022, the agriculture sector allocation has been increased by 4.4% to Rs 132,513.62 crore. From promoting chemical-free farming to funding agri-tech start-ups to digital services to farmers, the budget looked at taking agriculture on a sustained higher growth trajectory with a slew of innovative announcements.

The reform-oriented scheme- Sub-Mission on Agricultural Mechanization (SMAM) is being attributed to the sharp rise in the sale of tractors recently. This is a clear indication of deepening mechanisation of agriculture and rural economy and generates hope to double farmers’ income.

Drones have flown into Indian landscapes quite fast. In August 2021, the Ministry of Civil Aviation liberalised the drone use policy. This was followed by the Department of Agriculture and Farmers’ Welfare issuing the SOP for using drones to spray pesticides in agricultural, forest lands and non-cropped areas. In October 2021, India became the first-ever country to commercially produce and spray Nano Liquid Urea through Drone in Gujarat’s Bhavnagar. A drone subsidy proposal was also included later in the drone policy. It is through this clause that FPO’s can now receive a grant of up to 75% of the cost of an agriculture drone.

Innovative drone-powered solutions and government initiatives like the Svamitva scheme (Survey of Villages and Mapping with Improvised Technology in Village Areas), which is surveying inhabited Indian rural lands using drone technology are taking advantage of these measures. This will empower villagers with a “record of rights”, which may further assist them to fight off property disputes or make more enterprising decisions concerning their land.

As for crop assessment, drones can be peerless as they can provide high-resolution crop data which can help identify, warn & fix issues with the agricultural produce. Other uses include livestock Management, crop health and stress analysis, plant growth monitoring and treatment, scouting, precision farming, fertiliser spraying and more. High-tech aerial surveying drones have advanced sensors which procure precise data. Geo-tagging aerial images provide information that can result in lesser cost, improved crop yields and profitability.

Clearly, the increased public expenditure on infrastructure, agri-techs including ‘Kisan Drones’, crop assessment, digitisation of land records, spraying of insecticides and nutrients, other R&Ds, and FPOs is sure to create a multiplier impact on the growth and competitiveness of the agriculture sector in coming years.

 

Carbon Capturing for Sustainability 

One of the three key goals identified by the government during the budget 2022 is Promoting digital economy & fintech, technology-enabled development, energy transition, and climate action. To protect the interests of future generations and prepare the major polluting industries for green operational levels, achieving these tech and sustainability goals is vital.

Producing top soil, balanced and clean air, well-recharged aquifers etc are gifts of nature that are not easy to produce using man-made technologies, surely not in the short span of time they are needed for a sustainable future. The solution is mindfulness of damages, reducing externalities and capturing & restoring at the source. Top soil storage and refilling open cast mines to sewage treatment are already in vogue. Efforts towards air pollution is collectively termed Circular Carbon Economy(CCE). Latest in CCE is Carbon-capturing, whereby the plants capture carbon at the point of emission itself and using oxidation process traps the carbon dioxide. This way the pollutant becomes reusable in the production of fuels, plastic, soda ash etc. Wherever near by mines, oil wells or other appropriate geological structures are available, this captured carbon is stored deep inside earth’s surface.

To accelerate Carbon Capture and Storage (CCS) technologies, India’s DST has established a national programme on CO2 storage research and, in August 2020, made a call for proposals to support CCS research, development, pilot and demonstration projects. CCS technology is meant to play an essential role in meeting net-zero targets, including as one of few solutions to tackle emissions from heavy industry.

Globally, power and industry account for about 50% of all greenhouse gas emissions. With the debate rounding on Net Zero Emissions and targets being set, it is vital to identify and adopt the right balance of portfolio of emission curtailment technologies. The words in the spotlight are – Carbon Capture, Utilization and Storage – induced with the aim to reduce carbon emission either by storing it or reusing it. Aligning with this, two National Centres of Excellence in Carbon Capture and Utilization are being established in India. With the support of the Department of Science & Technology (DST), these two centres namely, NCoE-CCU (National Centre of Excellence in Carbon Capture and Utilization) is established at the Indian Institute of Technology (IIT-Bombay) and NCCCU ( National Centre in Carbon Capture and Utilization ) at Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) Bengaluru.

CCU is among such key pathways to reduce emissions while continuing to develop sustainably at an unprecedented pace. CCU aligns with 5 of the 17 sustainable development goals (SDGs), namely, climate action; clean energy, industry, innovation, and infrastructure; responsible consumption and production; and partnerships to achieve the goals.

 

Independent interdependent India-South Korea

15th August is the most important date in India, as it celebrates Independence Day. So is true for South Korea! In 1945, on 15th August, Korea was liberated from its occupation by Japan and, exactly three years later, on August 15, 1948, the Republic of Korea was officially established, making the date celebratory as National Liberation Day of Korea or Korean Independence Day. This is not the only connection between the two countries. According to records, the history of India-South Korea ties dates back to 48 AD when an Indian princess ‘Suriratna’ from Ayodhya married King Kim-Suro, and became Queen Hur Hwang-ok. “In the golden age of Asia, Korea was one of its lamp bearers, and that lamp is waiting to be lit once again for the illumination of the East”, Rabindranath Tagore once said in his evocative poem ‘Lamp of the East’.

India already stands as S.Korea’s seventh-largest exports market. India is also one of the top priorities in South Korean President Moon Jae-in’s New Southern Policy which oscillates in tandem with PM Modi’s emphasis on India’s Act East Policy. South Korea’s technological competence & capital base has, in recent years, been able to strike a good match with India’s lucrative market potential and ever-expanding consumer base.

In line with the common vision for cooperation and growth, both the country had signed six MOUs and bilateral agreements during the S.Korean leader’s visit to India in 2018. To further ease business issues, the government of India has established a Korea Plus initiative to facilitate numerous business queries. Reciprocating on similar lines, the South Korean government is setting up strategy groups & centres for promoting research and cooperation between the two countries. The Korea Trade Investment Promotion Agency is also spreading its work in India.

Further, many popular S.Korean brands are already on an expansion mode in India, with many of them becoming a household name in India – from a Samsung mobile phone, a Hyundai vehicle to an LG home device. Electronics giant Samsung’s Phone factory in Noida is the world’s largest mobile phone factory. Also, Samsung and LG Electronics have established their largest R&D facilities in Bangalore, outside Korea. Hyundai’s R&D centre in Hyderabad is one of its five global hubs (others being in Korea, the US, China & Germany). While LG plans to create export hubs in India, Hyundai Motors had announced its aim to further its manufacturing capability here. Other companies include the ‘Lotte Group’, which has lined up $3 – 5 Bon in potential India investment in the next five years. Kia Motors is planning to invest around $2 bn to build a facility in Andhra Pradesh.

US-China Trade war made major South Korean exporters (Samsung and Hyundai) face grand losses. South Korean companies have to move manufacturing outside China as it is becoming increasingly challenging due to its recent imposition of economic sanctions on South Korea. Thus, countries like India, which offer less complex business and investment framework and cheaper labour, are no less than a natural destination for South Korea to strengthen its economic portfolio and cut down its dependence on its two traditional trade allies i.e. US & China.

Uplifting Indian Sports from Grassroot level

“Early catch and proper nurture, makes a medals winning culture” could be the adage adopted by India as it has started to make its mark in international competitions across various games and sports. To support sports saplings – 90 Extension Centres of STC (Sports Authority of India Training Centre), including 60 Khelo India Centres, and 10 Regular Schools which are part of the National Sports Talent Contest (NSTC), are operational under Sports Authority of India. Most of the Extension Centres are operational in schools across the country. Further, under the “State Level Khelo India Centre” vertical of the Khelo India scheme, 04 Kendriya Vidyalayas with residential facilities are operational as Sports Schools since October 2019. Under this vertical ₹1,50,000 per athlete per annum are provided towards expenses of onboarding, lodging, education, training, competition exposure, medical by the Government of India.

In the past few decades, the country has seen exponential growth in sports. As it has pulled its socks by way of providing sports infrastructure at the grassroots level to help athletes to become professional, results have started to show by providing the world with a glimpse of the multisports nation. Further, Sports and Physical education are also responsible for healthy individuals. Now, as per the National Curriculum Framework (NCF), Health and Physical Education is a compulsory subject up to Xth Class, and an optional subject at Higher Secondary Stage. Educating school students about physical education prepares them to deal with the basic nuance of the Human body and further develop a sense of responsibility towards their health. Fit India Movement works with the vision that a healthy individual is far more productive for the nation.

National Sports University, established in Manipur, is a first of its kind university that aims to provide athletes and individuals to nurture into world-class athletes. The university will uplift education in the areas of Sports Sciences, Sports Technology, Sports Coaching, besides functioning as the national training centre for selected sports disciplines. The National Sports University will cater to students and sportspersons from all States and UTs. Financially supporting these efforts is also one of the main pillars behind successful infrastructure. On the similar lines, The Ministry of Youth Affairs & Sports has released a total fund of Rs.87.65 Cr to date including Rs.5.49 Cr during the current Financial Year 2021-22 for establishing/construction of the main campus and for the functioning of the temporary campus of the National Sports University, Manipur. Such efforts at the university level will further push the Indian sports ecosystem to the next level.