Global Competitiveness Index 2023

Why in news?

• India’s Competitiveness Ranking and Performance India has dropped three spots to the 40th position on the latest Global Competitiveness Index released by the International Institute for Management Development (IMD).

Overview

• This represents a decline from last year, but it is an improvement from the 43rd rank secured in 2019-2021.
• The report highlights India’s progress in government efficiency but points out lagging performance in business efficiency, infrastructure, and economic performance.
• Key factors contributing to India’s score were exchange rate stability, compensation levels, and advancements in pollution control.
• India is expected to face several challenges in 2023, includes sustaining high GDP growth, managing financial market volatility, controlling inflation and fiscal deficit, accelerating digital transformation, and mobilizing resources for infrastructure development.

Top Performers in the Global Competitiveness Index

• The top three spots in the Global Competitiveness Index are claimed by Denmark, Ireland, and Switzerland. Ireland experienced a significant leap in this year’s ranking, jumping from the 11th position to second place.
• This can be attributed to its strong performance in the economic domain, where it secured the top position.
• Factors such as a skilled workforce, high educational attainment, policy stability, predictability, a competitive tax regime, and a business-friendly environment contributed to Ireland’s advancement.
• On the other hand, Singapore dropped to the fourth position from third place.

Impact of Covid-19 on Competitiveness

• The report highlights that economies that delayed their reopening after the Covid-19 pandemic were starting to witness improvements in their competitiveness.
• Thus, Thailand, Indonesia, and Malaysia progressed in the ranking, while early-opening economies like Sweden and Finland experienced setbacks.

Performance of the European Region

• The European region as a whole performed well in the ranking, with five economies securing positions in the top 10.
• Professor Arturo Bris, Director of the WCC, says that the ranking provides valuable insights for evaluating different business environments, supporting international investment decisions, and assessing the quality of life in each country.

Significance of the IMD World Competitiveness Yearbook

• The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report that serves as a global reference point for a country’s competitiveness.
• The ranking is based on an extensive study using economic literature, global, national, and regional sources, as well as inputs from the business community, government organizations, and academics.
• WCC’s Chief Economist, says that resilient economies like Ireland, Iceland, Bahrain, the UAE, Saudi Arabia, Qatar, and Singapore have excelled in building resilience and adapting policies based on current economic conditions.

GS PAPER – III

Green Credit Scheme

Why in news?

• The Environment Ministry in India has introduced a draft notification outlining a new initiative called the ‘Green Credit Scheme.’

Overview

• This scheme aims to promote sustainable living by incentivizing various activities such as afforestation, water conservation, waste management, and addressing air pollution.
• It allows individuals and organizations to generate ‘green credits,’ which can potentially be traded for monetary benefits.
• The scheme proposes the establishment of a national-level Green Credit Program to encourage voluntary environmental actions and drive a competitive market-based approach towards sustainability.

Objectives and Scope

• The draft notification highlights the objectives of the Green Credit Scheme, which include incentivizing voluntary environmental actions, encouraging individual and community participation, and ensuring compliance with existing environmental obligations.
• The scheme aims to create a market-based mechanism where green credits can be earned through specific actions and activities.
• The proposed scheme also seeks to engage private sector industries, companies, and other entities in fulfilling their environmental responsibilities while offering them opportunities to generate or purchase green credits.

Generation and Trading of Green Credits

• Under the Green Credit Scheme, individuals, communities, and organizations can participate in various eligible activities to earn green credits.
• The notification lists eight sectors or activities that qualify for credit generation.
• These sectors include tree plantation and afforestation drives, water conservation and harvesting, sustainable agriculture practices, and improved waste management.
• The scheme envisions the creation of a market for green credits, where participants can trade these credits for financial benefits.
• The specific mechanisms and procedures for generating, accounting, and trading green credits are yet to be defined.

Comparisons with Carbon Markets and it implementation

• The proposed Green Credit Scheme presents unique implementation challenges as it covers a broad range of actions beyond carbon emissions trading.
• Unlike traditional carbon markets, which focus solely on greenhouse gas emissions, the Green Credit Scheme accounts for various environmental activities.
• This complexity requires careful consideration and development of comprehensive frameworks to account for diverse actions and assess their environmental impact.

Conclusion

• The draft notification for the Green Credit Scheme in India demonstrates the government’s commitment to promoting sustainable living and addressing environmental challenges. By incentivizing voluntary actions through the generation and trading of green credits, the scheme seeks to engage individuals, communities, and organizations in environmental conservation efforts. The scheme’s success will depend on the effective implementation of a market-based approach, which involves creating a supply of green credits through voluntary actions and establishing demand through future regulations that incentivize credit purchases.

GS PAPER – III

Comprehensive List Of Critical Minerals

Why in news?

• The Indian government is set to release a comprehensive list of critical minerals as part of its efforts to enhance self-sufficiency, ensure resource sustainability, and support the country’s net-zero objectives.

Significance of the Critical Minerals List

• The release of the critical minerals list is seen as a strategic initiative that emphasizes India’s commitment to bolster its mineral sector and reduce dependence on imports.
• By identifying and prioritizing these minerals, India aims to address supply chain vulnerabilities and price volatility associated with import reliance.
• The absence of a specific list was hindering the prioritization of critical mineral needs in the country.

Purpose and Implications of the List

• This will be the first time that India will publish an official list of critical minerals.
• The list will serve as a guiding framework for policy formulation, strategic planning, and investment decisions in the mining sector.
• Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements (REES) are essential for clean energy technologies, including wind turbines, solar photovoltaic cells, and electric vehicle (EV) batteries.
• China currently dominates the global concentration of mineral deposits and processing of critical minerals.

Composition and Scope of the Critical Minerals List

• The forthcoming critical minerals list is expected to include more than 40 minerals, as per government sources.
• While India did not have an official list previously, a report by the Council on Energy, Environment, and Water (CEEW) identified 49 non-fuel critical minerals, including rare earth minerals.
• The study revealed that the supply risk for 24 minerals would reach 100% by 2030, and over 50% for 41 minerals.
• The Ministry of Mines collaborated with experts to compile the list based on economic importance, scarcity, and national security implications.
• The list is subject to dynamic changes based on technological advancements, market dynamics, and geopolitical considerations.

International Perspective on Critical Minerals

• Different countries have their own unique lists of critical minerals based on their specific circumstances and priorities.
• The United States has declared 50 critical minerals for national security and economic development, while the United Kingdom considers 18 minerals critical and Canada recognizes 31.
• India aims to strategically develop and manage its mineral resources to ensure long-term security, mitigate risks, and enhance industrial competitiveness.

Conclusion

• The release of India’s critical minerals list marks a significant step towards enhancing self-sufficiency, securing the supply chain, and supporting sustainable economic growth. India’s proactive approach to critical minerals underscores its commitment to resource sustainability and its efforts to achieve long-term security in key industries such as clean energy and advanced technologies.

GS PAPER – III

Chandrayaan-3

Why in news?

• India’s upcoming lunar mission, Chandrayaan-3, is set to take off on July 13 2023 from Sriharikota, the country’s spaceport. The spacecraft is expected to reach the moon’s surface around August 23 after a month-long journey.

Landing Site and Exploration Objectives

• Chandrayaan-3’s landing site will be the same as the previous mission, near the moon’s south pole at 70 degrees latitude.
• This location was chosen due to its numerous craters that remain in shadows, increasing the likelihood of exploring water ice.
• Chandrayaan-1, which carried NASA payloads, confirmed the presence of water and hydroxyl molecules on the moon.

India’s Quest for Soft Landing

• If successful, Chandrayaan-3 will become the first mission to achieve a soft landing near the southern pole of the moon.
• This achievement would place India among the four nations—alongside the United States, Russia, and China—that have accomplished soft landings on the moon.

Continuation of Previous Trajectory

• The mission will follow a trajectory similar to the previous Chandrayaan mission.
• The spacecraft’s orbit will be gradually raised multiple times until it escapes Earth’s gravity.
• After reaching the moon and being captured by its gravity, the orbit will be lowered to a circular orbit of 100×100 km before initiating the descent.

Challenges

• The descent phase of the vehicle has been described as “15 minutes of terror” by the former ISRO chairperson K Sivan.
• However, with the orbiter from the previous mission already in place around the moon, Chandrayaan-3 will only carry the lander-rover configuration on top of a propulsion module.
• Additional sensors have been incorporated to enhance the mission’s success, and extensive testing has been conducted.
• Chandrayaan-3 follows the unfortunate crash landing of Chandrayaan-2, which intended to demonstrate soft landing and rover operations but fell short by landing 2.1 km from the moon’s surface.
• The upcoming mission aims to rectify past challenges and achieve a successful landing and rover deployment.

Conclusion

• Chandrayaan-3’s scheduled launch and landing dates mark an important milestone in India’s lunar exploration efforts. By targeting the moon’s south pole and continuing the mission’s trajectory from its predecessor, India aims to gather valuable data and insights while striving for a successful soft landing. The mission represents India’s determination to expand its space exploration capabilities and contribute to the global understanding of the moon’s composition and resources.