01 July 2025: The Hindu Editorial

1. The Focus Must Shift to the Real Economy

Source – Page 6, The Hindu Editorial

Topic: GS Paper 3 – Indian Economy (Growth & Development, Economic Reforms)

Context

Despite impressive macroeconomic numbers like high GDP growth and soaring stock markets, the Indian economy shows persistent signs of distress at the ground level. The editorial critiques the government’s over-reliance on fiscal prudence and its limited trickle-down impact.

1. Disconnect Between Macro and Micro Economy

• GDP vs. Ground Reality: High GDP growth not translating into employment or income generation.

• Stock Market Boom: Driven by select sectors, not reflective of broader economic health.

2. Policy Concerns

• Overemphasis on Fiscal Consolidation: Central government limiting public spending to contain fiscal deficit.

• Neglect of Welfare Spending: Low public investment in health, education, and social safety nets.

3. Structural Issues

• Employment Woes: Most new jobs are in low-productivity informal sector.

• Stagnant Rural Economy: Agricultural income remains low; rural demand is sluggish.

4. Proposed Shift in Strategy

• Re-focus on Real Economy:

  • Invest in public health and education.

  • Strengthen rural employment schemes (like MGNREGA).

  • Support MSMEs with credit and incentives.

• Tackle Inequality: Design inclusive policies that directly address income and regional disparities.

5. Way Forward

• Adopt a bottom-up growth model.

• Balance fiscal discipline with developmental expenditure.

• Strengthen cooperative federalism for decentralised economic planning.

Practice Question: India’s recent economic growth trajectory reflects a paradox — impressive GDP numbers but a struggling real economy. Discuss the factors responsible for this disconnect and suggest measures to make economic growth more inclusive and sustainable.

2. Balancing Growth and Ecology: Lessons from the Western Ghats

Source – Page 6, The Hindu Editorial

Topic: GS Paper 3 – Environment and Ecology

Context

The editorial discusses the ongoing ecological challenges in the Western Ghats, especially in light of recent landslides and floods attributed to developmental activities that ignore environmental norms.

Importance of the Western Ghats:

• One of the eight “hottest hotspots” of biodiversity.

• Source of major peninsular rivers like Godavari, Krishna, and Kaveri.

• Hosts rich endemic flora and fauna.

Ecological Concerns:

• Unplanned development, quarrying, and deforestation contribute to soil erosion and landslides.

• Weak implementation of recommendations by environmental panels like the Gadgil and Kasturirangan Committees.

• Disregard for carrying capacity studies in tourism and infrastructure projects.

Gadgil vs. Kasturirangan Reports:

• Gadgil Committee (2011): Recommended declaring 64% of the Western Ghats as Ecologically Sensitive Area (ESA); focused on people-centric, bottom-up approach.

• Kasturirangan Committee (2013): Suggested 37% ESA; emphasized development with environmental safeguards; more acceptable to states.

Policy Challenges:

• Political pushback from states citing economic development concerns.

• Lack of coordination between central and state governments.

• Absence of long-term ecological monitoring and land-use planning.

Way Forward:

• Strengthen environmental governance by empowering local self-governments.

• Implement stricter EIA norms and community involvement in project approvals.

• Promote sustainable eco-tourism and watershed-based development.

• Revisit and act upon committee recommendations with region-specific modifications.

Practice Question: The environmental degradation of the Western Ghats reflects the tension between economic development and ecological sustainability.” Critically discuss with reference to the recommendations of the Gadgil and Kasturirangan Committees.

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