1 February 2025: PIB Summary For UPSC
1. CLIMATE CHANGE ADAPTATION, BUILDING RESILIENCE DEMAND TARGETED POLICY MEASURES: ECONOMIC SURVEY 2024-25
(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2097862®=3&lang=1 )
Topic: GS3 – Indian Economy |
Context |
The economic survey underlines India’s efforts towards achieving net-zero emissions by 2070 and sustainable urban and energy development. |
India’s net-zero ambition by 2070
- India aims to achieve net-zero emissions by 2070. To reach this target, significant investment is needed in upgrading grid infrastructure and ensuring a secure supply of critical minerals required for the transition.
- The Economic Survey highlights the limited climate finance mobilized under the New Collective Quantified Goal (NCQG) at COP29.
- The target of USD 300 billion annually by 2035 is far below the estimated USD 5.1-6.8 trillion needed by 2030, placing the burden on developing countries.
Sustainable urban development
- Vertical gardens, or living walls, are proposed as a solution to mitigate the urban heat island effect, reduce carbon emissions, and improve air quality.
- These gardens also enhance the aesthetic value of buildings and promote biodiversity in urban spaces.
- The Economic Survey suggests enhancing the Energy Conservation and Sustainable Building Code (ECSBC) by introducing explicit guidelines for vertical gardens.
- This will further improve urban sustainability and help in combating heat islands.
Energy transition and reliable power sources
- Nuclear energy is recognized as a low-emission, reliable alternative to fossil fuels.
- The Economic Survey emphasizes the need for forward-thinking strategies to facilitate a smooth transition to nuclear energy.
- The Survey also stresses the importance of using advanced technologies like super-critical and Advanced Ultra Super Critical (AUSC) power plants in coal-based thermal power plants.
- These technologies help reduce the emission intensity and contribute to a greener energy transition.
Mission LiFE and public engagement
- The Lifestyle for Environment (LiFE) movement focuses on promoting sustainable practices such as resource conservation, waste management, and recycling. It encourages a shift toward a circular economy.
- The Economic Survey advocates for a nationwide awareness campaign to turn Mission LiFE into a widespread public movement.
- This includes integrating environmental education into school curricula and supporting initiatives like the Green Credit Rules.
Renewable energy capacity
- As of November 2024, 46.8% of India’s total electricity generation capacity comes from renewable sources.
- The country is on track to meet the updated goal of 50% by 2030.
Practice Question: Discuss the key challenges and strategies for India’s transition towards net-zero emissions by 2070. (150 Words /10 marks) |
2. SERVICE SECTOR’S CONTRIBUTION TO TOTAL GVA RISES FROM 50.6% IN FY14 TO 55.3% IN FY25: ECONOMIC SURVEY 2024-25
(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2098048®=3&lang=1 )
Topic: GS3 – Indian Economy |
Context |
The Economic Survey 2024-25 highlights the service sector’s significant role in driving India’s GDP growth, exports, and employment, alongside key sectoral advancements. |
Service Sector Growth and Contribution
- The service sector has been a major contributor to India’s economic growth, with a steady increase in its share of the Gross Value Added (GVA), from 50.6% in FY14 to around 55% in FY25.
- From FY23 to FY25, the service sector grew at an average rate of 8.3%, boosting the overall GDP.
- Services provide jobs to about 30% of the workforce and are increasingly supporting manufacturing through the ‘servicification’ of production processes.
Global Services Exports and Trade Performance
- India ranks 7th globally in services exports, contributing 4.3% to global exports.
- Services export growth surged by 12.8% in FY25 (April-November), with computer and business services making up around 70% of the exports.
- The services sector has also seen a rise in imports, which grew by 13.9% during the same period.
- FDI equity inflows to the services sector were USD 5.7 billion from April-September FY25, with insurance and financial services receiving the most significant share.
Key Sectors for Service Sector Growth
- NITI Aayog has classified services into four categories: defend, accelerate, transform, and untapped, based on their contribution to GDP, exports, and employment.
- Logistics, tourism, and real estate sectors have been performing well. Railways, road transport, and air transport have seen significant growth, while inland water transport and river cruise tourism hold potential for further expansion.
Information Technology and Telecom Growth
- The IT sector continues to be a significant contributor to exports, with revenues of USD 254 billion in FY24, growing by 3.8%.
- India’s telecom sector is expanding with an increasing number of smartphone users and rising data consumption, averaging 19.3 GB per user monthly in FY24.
Global Capability Centres and Skilling
- India’s Global Capability Centres (GCCs) employed nearly 1.9 million professionals in FY24 and have become a key part of the global business landscape.
- The Economic Survey emphasizes the need for skilled labor to drive growth in both manufacturing and service sectors.
Practice Question: Discuss the role of the service sector in India’s economic growth. Analyze its contribution to GDP, employment, and global exports in the context of the Economic Survey 2024-25. (250 Words /15 marks) |
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