The Hindu Editorial Summary : Why Have Private Investments Dropped?

GS-3 Mains

Short Notes or Revision Notes 

Question : Explain the significance of Gross Fixed Capital Formation (GFCF) as a measure of private investment in an economy?

Problem: Private investment in India (measured by private GFCF) has been falling since 2011.

What is GFCF?

• Stands for Gross Fixed Capital Formation.
• Represents the growth in fixed capital (buildings, machinery) in an economy.
• A higher GFCF indicates a more vibrant private sector willing to invest.
• Fixed capital is crucial for economic growth and improved living standards.

Why GFCF Matters:

• More fixed capital allows workers to produce more goods and services.
• This boosts economic output and improves living standards.
• Developed economies have more fixed capital per capita than developing ones.

Trend in Private Investment in India:

• Increased significantly after economic reforms in the late 1980s and early 1990s.
• Pre-liberalization: Private investment remained around 10% of GDP.
• Public investment rose steadily, surpassing private investment in the early 1980s.
• Post-liberalization: Private investment took the lead but dropped after the 2008 crisis.
• Reached a low of 19.6% of GDP in 2020-21.

Reasons for the Fall:

• Low private consumption expenditure: Some economists believe weak consumer spending discourages businesses from investing due to lack of demand.
  • Historically, however, a rise in consumption hasn’t led to a rise in investment in India.
  • Lower consumption might even boost investment as saved money can be directed there.
• Structural problems: Many economists point to unfavorable government policies and policy uncertainty.
  • Uncertainty discourages investment as businesses need stability for long-term projects.

Conclusion:

• Low private investment leads to slower economic growth.
• Private investors are seen as better allocators of capital compared to the government.

 

 

The Hindu Editorial Summary :  Dynamic Duo: Enhanced Liver Function and Gut Health

GS-2 Mains : Health

Short Notes or Revision Notes 

Question : Critically analyze the role of hydration in supporting liver function and optimizing bile production. Discuss the significance of adequate hydration in eliminating toxins and maintaining liver health.

Context: World Liver Day – emphasizes supporting liver and gut health due to their symbiotic relationship.

The Unsung Heroes:

• Liver: detoxifies, metabolizes, and stores nutrients.
• Gut: orchestrates digestion and plays a vital role in the immune system.

Liver Function:

• Performs crucial tasks for well-being:
  • Detoxification (harmful substances, toxins)
  • Synthesis of essential proteins
  • Storage of glycogen (energy)
  • Metabolism of fats, carbohydrates, and proteins (regulates blood sugar and cholesterol)
• Can be impaired by excessive alcohol, poor diet, viral infections, and medications.
• Liver diseases: fatty liver disease, hepatitis, cirrhosis.

The Gut: Gateway to Health

• Hosts trillions of microorganisms (gut microbiota) that:
  • Break down food
  • Synthesize vitamins
  • Bolster the immune system
• Disrupted by modern lifestyle (processed foods, antibiotics, stress):
  • Gastrointestinal disorders (IBS, IBD, leaky gut)

The Liver-Gut Axis:

• Bidirectional communication system:
  • Liver produces bile (aids fat digestion)
  • Bile acids signal gut microbiota composition
  • Gut bacteria metabolites influence liver function and inflammation
  • Healthy gut microbiome strengthens gut barrier (prevents harmful substances from reaching liver)
  • Compromised gut barrier burdens the liver

Strategies for Optimization

• Diet:
  • Fiber-rich foods (fruits, vegetables, whole grains, legumes): prebiotics for gut bacteria
    • Soluble fiber binds to bile acids (reduces cholesterol)
  • Probiotic-rich foods (yogurt, kefir, kimchi): introduce beneficial gut bacteria
  • Limit sugar and processed foods (harm gut microbiota, contribute to liver issues)
• Hydration:supports liver function (eliminates toxins, optimizes bile production)
• Stress Management:chronic stress harms gut health (permeability, microbiota)

Conclusion:

Liver and gut are interconnected for overall health. Nurturing gut health (diet, stress management, probiotics) supports liver function and well-being.