Indian Express Editorial Summary

Editorial Topic : Next Government’s Economic Priorities

GS-3 Mains Exam : Economy

Revision Notes

Question : Evaluate the challenges facing household consumption in India and propose policy recommendations to address issues with a focus on tax reforms and income enhancement strategies.

India’s Growth:

• Achieved over 7% GDP growth for 3 years, but pre-Covid growth not fully recovered.

Key Areas for Focus:

1. Revive Private Investment:
   • Government spending (capex) drove infrastructure growth (roads, railways).
   • Sectors like steel, cement benefitted.
   • Private investment needed for sustained growth.
   • Investment decisions depend on strong consumer demand (return on capital).
   • PLI scheme (Production Linked Incentive) had limited success (mobiles, solar panels, partially electric vehicles).
   • Improvements needed: Expand PLI scheme to small businesses (SMEs), offer incentives like investment allowances.
2. Increase Household Consumption:
   • Volatile household consumption pattern:
     • Surge in services and some manufactured goods during pandemic.
     • Hospitality and tourism sectors boomed.
     • Consumer goods demand remained weak.
   • Surplus capacity and high inflation dampen consumer goods investment and demand.
   • Weak rural demand due to poor farm output (sub-normal monsoon).
   • Policy Suggestions:
     • Reconsider tax rates to increase disposable income.
     • Lower direct tax rates and rationalize GST slabs.
     • Address decline in household savings by reviewing tax structures.
     • Reconsider old tax scheme and offer more avenues for saving.

3. Job Creation (Indirect Government Influence):

• Led by private sector investment driven by consumer demand.
• Government can fill vacant positions but large-scale job creation relies on economic growth.

4. Focus on Agriculture:

• Address farm laws through discussions with stakeholders.
• Consider government participation through cooperatives to manage price fluctuations.
• Provide clear communication on agricultural trade policies.
• Implement standardized procedures for procurement and distribution.
• Revoke bans on futures trading to improve price discovery and productivity.

5. Integration into Global Supply Chains:

• Negotiate more free trade agreements with major trading partners.
• Boost merchandise exports alongside the success of service exports (IT sector).

5. Fiscal Deficit Reduction:

• Target 4.5% of GDP by 2025-26.
• Long-term goal of reaching 3% of GDP requires careful economic management.

 

 

Indian Express Editorial Summary

Editorial Topic : The CDS : A Work in Progress

GS-3 Mains Exam : Defence

Revision Notes

Question : Discuss the significance of the Chief of Defence Staff (CDS) in the context of India’s military modernization efforts, highlighting the complexities associated with the role and the challenges faced in its implementation.

 

• Policy Issue: Rewiring the Indian military into integrated theatre commands (ITC) gaining traction.
• Key Role: Appointment of a Chief of Defence Staff (CDS) and supporting staff.

The Complexities of the CDS Role:

• Four-star General (equal to service chiefs).
• Secretary to the Government (Ministry of Defence).
• Principal advisor to Defence Minister (inter-service issues).
• Balancing military expertise with bureaucracy and political duties.

A Checkquered History:

• General Bipin Rawat (1st CDS):
  • Appointed January 2020 (after retirement as Army Chief – Dec 2019).
  • Tragically died in December 2021.
  • Some policies left unfinished, others questioned.
• Lt Gen Anil Chauhan (retd) (2nd CDS):
  • Appointed October 2022 (after 9 month vacancy).
  • Appointment from retirement raised eyebrows.
  • Limited progress on operational readiness by end of Modi 2.0 term.
  • Current command structure remains for immediate war scenarios.

Why New Posts?

• Enhance jointness (sharing expertise and assets) and improve combat capability.
• Concerns:
  • Vice CDS in four-star rank creates hierarchy issues.
  • Potential for three four-star theatre commanders.
  • Service chiefs (original four-star) would lack command responsibility.

Strengthening India’s Military: Recommendations for the CDS

• Reduce CDS workload: Revise the role of Secretary to the Government for CDS to avoid overload.
• Delegate Bureaucracy: Consider a four-star Vice CDS to handle bureaucratic tasks, freeing the CDS for core duties.
• Maritime Theatre Command Location: Review the proposed Coimbatore base for the MTC. Karwar’s existing infrastructure suggests a more logical choice.

The Importance of the CDS Role:

• National Security Threats: Ongoing border disputes with China and Pakistan, plus terrorism, pose significant challenges.
• Historical Examples: Kargil (1999), Mumbai (2008), and Galwan (2020) highlight the need for military preparedness.
• Evolving Threats: The CDS was created in 2019 to enhance combat efficiency and address emerging techno-strategic threats.
• Recent Conflicts: Ukraine and Palestine conflicts demonstrate the need to adapt to changing situations.

Limited Progress Since 2019: Measurable improvement in India’s overall combat efficiency remains elusive since the CDS announcement.

Conclusion: In a potential war scenario, current command structures with service chiefs would manage the situation. This underlines the urgency of a well-functioning CDS.