Disasters and National Security

Economic Downturns

• Disasters significantly impact national economies.
• They hinder progress towards economic goals like $5 trillion and $10 trillion economies.
• Disasters pose a major threat to national security.

Disaster Risk Insurance

• PM Modi’s Ten-Point Agenda emphasizes risk coverage for all.
• Disaster risk coverage includes physical safety and compensation.
• Insurance is essential for state and individual recovery.
• Insurance companies have developed viable business models.

Disaster Risk Insurance in India

• India is focusing on disaster-related insurance.
• NDMA conducted a workshop on insurance instruments.
• Parametric insurance is a promising solution.

Human Security and National Security

• Disaster risk insurance enhances human security.
• Human security is crucial for national security.
• Disasters can lead to displacement, vulnerability, and radicalization.

Global Examples

• Haiti’s 2011 earthquake led to mass migration and instability.
• Africa’s frequent droughts have caused societal turbulence and debt traps.
• Afghanistan’s 1981 refugee crisis contributed to the rise of the Taliban.

Conclusion

• As the world faces climate change, human security must be prioritized.
• Disaster risk insurance is essential for global resilience and national security.

 

 

 

 

India’s $500 Billion Electronics Manufacturing Opportunity

Target by 2030:

• PM Modi announced a $500 billion target for electronics manufacturing by 2030.
• Growth will help tackle India’s jobs challenge.
• India’s current total manufacturing output: $660 billion (2023-24).
• Requires export-led growth and bold reforms to achieve.

Achieving Export Competitiveness:

• Competitive Regional Clusters: Key regions like Silicon Valley, Taiwan, Japan, South Korea, China’s Shenzhen, and Vietnam’s NKER have driven electronics growth.
• In India, Sriperumbudur (Tamil Nadu) and Noida (Uttar Pradesh) account for 50% of electronics exports.

Factors for Success in Regional Clusters:

• Large Size and Anchor Investors: Co-locate suppliers and buyers, build large industrial infrastructure, and create social infrastructure (worker housing, schools, hospitals).
  • Example: Shenzhen exports $350 billion and covers 2,000 km². India’s largest cluster under the EMC scheme is only 2.5 km².
• Customised Regulations for Exports:
  • Labour Laws: Pro-employment laws with flexible shifts, over-time rules, and removal of restrictions on women’s employment.
  • Taxation: Competitive corporate tax and GST rates, cross-border inventory management without tax issues.
• Devolution of Power: Empower industrial park authorities with necessary approvals and permissions for responsive governance.
• Public-Private Partnerships (PPP): Use PPP models for fast execution of plug-and-play parks.

Conclusion: Without large, competitive manufacturing regions, India’s ambitious $500 billion target will remain unachievable.